Should I be worried if a contractor asks for full payment upfront?

Yes, you should be very concerned if an Ottawa contractor asks for full payment upfront - this is a major red flag and violates Ontario's Construction Lien Act requirements.

Under Ontario law, contractors cannot demand more than 10% down payment on most residential projects. The Construction Lien Act specifically protects homeowners by requiring a 10% holdback on all payments until 60 days after substantial completion. This means even your final payment should retain 10% until this waiting period ends.

What Ontario Law Allows for Down Payments

Legitimate contractors in Ottawa typically ask for:

• 10% down payment to secure the job and cover initial material costs


• Progress payments tied to completed milestones (30% at rough-in, 30% at drywall, etc.)


• Final payment minus 10% holdback at substantial completion


• Final 10% released 60 days later if no liens are filed

The only exceptions are very small jobs under $500 or specialty items requiring full payment to suppliers, but even then, reputable contractors will explain this clearly.

Why Contractors Ask for Full Payment Upfront

Unfortunately, contractors requesting full upfront payment often fall into these categories:

• Scam artists who disappear with your money


• Cash-flow problems - using your money to finish someone else's job


• Unlicensed operators who don't understand legal requirements


• Door-to-door scammers particularly common after storms in Ottawa neighborhoods

Red Flags Beyond Upfront Payment

Watch for these additional warning signs in Ottawa:

• No fixed business address (just a cell phone)


• Can't provide ESA license number for electrical work


• No WSIB clearance certificate


• Pressure tactics ("this price expires today")


• Showed up unsolicited at your door


• Quotes significantly below others (30%+ lower)

How to Verify Contractor Legitimacy in Ottawa

Before any payment, verify:

• ESA license at esasafe.com/contractor-locator for electrical work


• TSSA certification at tssa.org for gas/HVAC work


• WSIB clearance certificate (they should provide this)


• Business registration through Ontario's business registry


• Better Business Bureau rating and complaint history

Protecting Yourself in Ottawa

If a contractor insists on full payment upfront:

• Walk away immediately - no legitimate contractor requires this


• Report them to Ottawa Police if they're door-to-door scammers


• Contact Consumer Protection Ontario at ontario.ca/consumer


• Get multiple quotes from established Ottawa contractors with proper licensing

For major renovations requiring City of Ottawa building permits, ensure your contractor can pull permits through the ottawa.ca/building portal. Licensed contractors will understand permit requirements and legal payment structures.

Remember: legitimate Ottawa contractors want to build long-term reputations in our community. They'll be happy to explain payment schedules that protect both parties and comply with Ontario law.