Should I pay my contractor before the work is inspected?

No, you should never pay a contractor in full before work is inspected and approved in Ottawa. Ontario's Construction Lien Act specifically protects homeowners by allowing you to hold back 10% of each payment for 60 days after substantial completion.

Ottawa Payment Best Practices

For any work requiring City of Ottawa permits, your payment schedule should align with inspection milestones. The City of Ottawa Building Code Services (613-580-2424) requires inspections at specific stages - rough-in, insulation, and final. Your contractor payments should follow these inspection approvals.

A proper payment structure in Ottawa typically looks like: 10% down payment to secure materials, 25-30% after rough-in inspection passes, another 25-30% after insulation/pre-drywall inspection, 25-30% at substantial completion, and the final 10% holdback released 60 days later (assuming no liens are filed).

ESA and TSSA Inspection Requirements

For electrical work, your contractor must arrange ESA (Electrical Safety Authority) inspections before you make final payment. You can verify inspection completion at esasafe.com or by calling ESA directly. Similarly, any gas work requires TSSA inspection approval before final payment.

Never pay for electrical or gas work until you receive the official ESA or TSSA inspection certificate. These aren't just suggestions - they're legal requirements in Ontario, and paying before inspection can leave you liable for code violations.

Red Flags to Watch For

Be extremely wary of contractors who demand full payment upfront or before inspections. Legitimate Ottawa contractors understand the inspection process and 10% holdback requirements. They should provide you with permit numbers so you can track inspection status on ottawa.ca/building.

Contractors asking for large upfront payments (more than 10-15%) or pushing to skip inspections are major red flags. Licensed contractors know that ESA, TSSA, and City inspections protect both you and them.

Your Legal Protection

The 10% holdback isn't just recommended - it's your legal right under Ontario's Construction Lien Act. This money protects you if subcontractors or suppliers aren't paid, or if defects emerge after completion. Even if your contractor seems trustworthy, maintaining proper payment schedules protects you from liens against your property.

If a contractor pressures you to pay before inspections or waive the holdback, contact the City of Ottawa Building Code Services at 613-580-2424 for guidance. For consumer protection issues, reach out to ontario.ca/consumer.

Remember: inspections exist to protect you. A contractor who wants payment before passing inspection is asking you to pay for potentially non-compliant work.