Is it safe to hire a contractor who only accepts cash?

No, it's not safe to hire a contractor in Ottawa who only accepts cash - this is one of the biggest red flags in the construction industry and often indicates an unlicensed or fraudulent operator.

Legitimate contractors in Ottawa and across Ontario accept multiple payment methods including cheques, bank transfers, and credit cards. Cash-only demands typically signal several serious problems that put you at risk.

Why Cash-Only is Dangerous

Contractors who insist on cash payments are often avoiding proper business registration, tax obligations, and regulatory compliance. In Ontario, legitimate contractors must carry WSIB coverage, liability insurance, and proper licensing (ESA for electrical work, TSSA for gas work). Cash-only operators frequently lack these protections, leaving you liable if someone gets injured on your property.

You'll also have no paper trail for warranty claims, insurance purposes, or if disputes arise. The Canada Revenue Agency and City of Ottawa Building Code Services (613-580-2424) require proper documentation for major renovations, which cash transactions make difficult to establish.

Ottawa's Legitimate Payment Practices

Reputable Ottawa contractors typically request payment schedules tied to project milestones - perhaps 10% down, progress payments at 25%, 50%, and 75% completion, with final payment after your satisfaction. Under Ontario's Construction Lien Act, you're entitled to hold back 10% of each payment for 60 days after substantial completion to protect against liens.

For projects requiring permits through ottawa.ca/building, you'll need proper invoices and documentation. Cash payments make it nearly impossible to prove compliance with Building Code requirements or demonstrate the work was done by qualified tradespeople.

Verification Steps for Ottawa Contractors

Before hiring any contractor, verify their credentials through official channels. Check ESA licensing at esasafe.com/contractor-locator for electrical work, and TSSA certification at tssa.org for gas or HVAC work. Confirm their WSIB clearance certificate and liability insurance are current.

Legitimate contractors will gladly provide these documents and accept standard payment methods. They understand that professional payment practices protect both parties and demonstrate their commitment to operating above board.

What to Do Instead

If a contractor demands cash only, politely decline and find someone else. Ottawa has many qualified, properly licensed contractors who follow professional business practices. Contact the City of Ottawa Building Code Services at 613-580-2424 if you need guidance on permit requirements, and always verify contractor credentials before signing any agreement.

Remember: legitimate contractors want to protect their reputation and follow Ontario regulations. Cash-only demands suggest they're cutting corners that could cost you significantly more than any upfront savings.