Should I be suspicious of contractors offering huge discounts?
Should I be suspicious of contractors offering huge discounts?
Yes, you should be very suspicious of contractors in Ottawa offering huge discounts - legitimate contractors rarely need to slash prices dramatically to get work, especially in our competitive market.
Large discounts are one of the biggest red flags in the contractor world. Here's why this happens and what it typically means:
Why Legitimate Ottawa Contractors Don't Offer Huge Discounts
Good contractors in the Ottawa area stay busy through referrals and reputation. They price their work fairly from the start because they know their costs - materials, labor, permits, insurance, and overhead. A contractor who can suddenly drop their price by 30-50% either overpriced initially (questionable business practice) or is cutting corners somewhere dangerous.
Common Discount Scams in Ottawa
The "limited time offer" is classic - they claim you must sign today to get this special price. Legitimate contractors give you time to think and compare quotes. Door-to-door contractors offering huge discounts after "finishing a job nearby" are almost always scams targeting Ottawa homeowners.
Some will quote high initially, then offer a big discount to make you feel like you're getting a deal. Others use the discount to get you to sign, then add back costs through change orders once work begins.
What Huge Discounts Usually Mean
They're not properly licensed - check ESA licensing at esasafe.com/contractor-locator for electrical work, or TSSA certification at tssa.org for gas/HVAC work. Unlicensed contractors can offer lower prices because they're skipping legal requirements.
They don't carry proper insurance or WSIB coverage. Always verify WSIB clearance at wsib.ca/clearances - this protects you from liability if someone gets hurt on your property.
They plan to use substandard materials or skip steps like proper permits through the City of Ottawa (ottawa.ca/building or 613-580-2424). Permit costs are real expenses that legitimate contractors factor into their pricing.
Red Flags Beyond the Discount
Pressure to sign immediately, requests for large upfront payments (Ontario's Construction Lien Act allows only 10% down payment), no fixed address or proper business registration, and reluctance to provide references from recent Ottawa-area customers.
Protecting Yourself
Get at least three written quotes for comparison. Verify all licensing and insurance before signing anything. Check references and drive by recent job sites if possible. For larger projects, consider having quotes reviewed by the City of Ottawa's Building Code Services.
Remember, in construction you typically get what you pay for. A quote significantly below others isn't usually a bargain - it's often a warning that corners will be cut on quality, safety, or legal compliance.
For verified, properly licensed contractors in Ottawa, check our directory at ottawaconstructionnetwork.com/directory where all contractors have been pre-screened for licensing and insurance requirements.
This response was generated by Construction Brain, an AI assistant. While we base our answers on industry standards and local Ottawa/Ontario requirements, please verify all current regulations, codes, and requirements from their respective sources:
- Permit requirements: City of Ottawa Building Services
- Ontario Building Code: ontario.ca
- Electrical permits: Electrical Safety Authority (ESA)
For project-specific guidance, request a free consultation with our team.
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