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 unlicensed, uninsured work that could leave you with major problems.

Legitimate contractors in Ottawa accept multiple payment methods including cheques, bank transfers, and credit cards because they operate proper businesses with business banking accounts. Cash-only contractors are typically trying to avoid leaving paper trails, which should immediately raise concerns about their legitimacy and tax compliance.

Why Cash-Only is Dangerous

When a contractor insists on cash payments, they're likely operating without proper licensing, insurance, or WSIB coverage. In Ontario, legitimate contractors need ESA licensing for electrical work, TSSA certification for gas work, and proper business registration. These contractors maintain business accounts specifically to handle project payments and provide proper invoicing.

Cash payments also eliminate your consumer protection options. If disputes arise or work isn't completed properly, you have no payment records to support warranty claims or potential legal action. The Ontario Consumer Protection Act provides stronger protections when you have documented payment records.

Ottawa's Underground Economy Issues

The City of Ottawa and Canada Revenue Agency actively investigate contractors operating in the cash economy. If you hire an unlicensed contractor paying cash, you could face complications if permits are required but weren't obtained. Building Code Services at 613-580-2424 can help verify if permits were properly pulled for your project.

Proper Payment Practices in Ottawa

Reputable Ottawa contractors typically request payment schedules tied to project milestones - perhaps 10% down, progress payments at 25%, 50%, 75% completion, and final payment minus the 10% holdback required under Ontario's Construction Act. They provide detailed invoices and accept cheques or bank transfers.

For electrical work requiring ESA permits, licensed contractors have business relationships with ESA and provide proper documentation. Similarly, TSSA-certified gas technicians maintain business accounts for permit fees and inspection costs.

Red Flags Beyond Cash-Only

Watch for contractors who also demand large upfront payments, lack proper business addresses, can't provide WSIB clearance certificates, or pressure you to avoid permits. These often go hand-in-hand with cash-only operations.

Verification Steps

Before hiring any Ottawa contractor, verify their ESA licensing at esasafe.com/contractor-locator for electrical work, check TSSA certification at tssa.org for gas work, and confirm WSIB coverage at wsib.ca/clearances. Legitimate contractors welcome this verification and provide their license numbers upfront.

Protect yourself by insisting on proper contracts, payment schedules, and documented transactions. The small inconvenience of writing cheques or arranging bank transfers is nothing compared to the massive headaches of dealing with unlicensed, uninsured contractors who disappear when problems arise.