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. This is one of the biggest red flags in contractor scams, and Ontario law actually protects you with specific payment structures.

Ontario's Construction Lien Act Protection

Under Ontario's Construction Lien Act, you're legally entitled to hold back 10% of each payment until 60 days after substantial completion. This "holdback" protects you from liens and ensures work meets standards. Any contractor pressuring you to waive this holdback or pay in full upfront is either inexperienced or potentially fraudulent.

Proper Payment Schedule for Ottawa Projects

A legitimate payment structure typically looks like:

• Small deposit (10-15%) to secure materials


• Progress payments tied to completion milestones (minus 10% holdback each time)


• Final payment only after all inspections pass and you're satisfied

For work requiring City of Ottawa permits, never make final payment until you receive the "final inspection passed" confirmation. You can verify inspection status by calling Building Code Services at 613-580-2424 or checking the ottawa.ca building portal with your permit number.

ESA and TSSA Inspection Requirements

For electrical work, your contractor should arrange ESA (Electrical Safety Authority) inspection before asking for final payment. You can verify the inspection passed at esasafe.com. Similarly, gas or HVAC work requires TSSA inspection completion before final payment.

A professional contractor will actually prefer this approach - they want their work properly inspected and approved because it protects their reputation and licensing.

Red Flags to Avoid

Be extremely cautious if a contractor:

• Demands full payment upfront "to buy materials"


• Pressures you to pay before permits are finalized


• Claims inspections aren't necessary


• Wants cash only with no paper trail


• Says they'll "handle the permits later"

Protecting Yourself in Ottawa

Always verify your contractor's credentials before any payment:

• ESA license lookup at licensing.esasafe.com for electrical work


• TSSA certification at tssa.org for gas/HVAC


• WSIB clearance certificate from wsib.ca


• Proper business registration and insurance

The City of Ottawa Building Code Services can also confirm if permits are properly pulled and inspections scheduled. Don't let anyone pressure you into paying before proper verification - legitimate contractors understand and respect these protection measures.

Remember: if something goes wrong after you've paid in full, getting your money back becomes nearly impossible. The holdback system and inspection requirements exist specifically to protect Ottawa homeowners from this exact scenario.