Should the contract include a completion date with penalties?

Yes, your Ottawa construction contract should absolutely include a specific completion date, but be strategic about penalties to protect yourself while remaining fair.

Essential Completion Date Elements

Your contract should specify both a start date and completion date, written as specific calendar dates rather than vague terms like "3 weeks." Include language about what constitutes "completion" - is it final inspection, cleanup complete, or when you can occupy the space? This clarity prevents disputes later.

Most experienced Ottawa contractors will agree to completion dates because they understand project scheduling. However, the contract should also include reasonable allowances for delays beyond the contractor's control, such as permit delays from the City of Ottawa (which can add 2-4 weeks to timelines), weather delays for exterior work, or material delivery issues that have become common since 2020.

Penalty Clauses: Proceed Carefully

While penalty clauses (called "liquidated damages") are legal in Ontario, they need to be reasonable or courts won't enforce them. A typical structure might be $100-200 per day after the agreed completion date, but only after a reasonable grace period of 5-10 days.

The key is that penalties must reflect your actual anticipated losses, not serve as punishment. If you're paying hotel costs while waiting to move back in, that's a legitimate loss. If it's just inconvenience, courts may not enforce large penalties.

Better Alternatives to Consider

Instead of penalties, consider a completion bonus structure - pay an extra $500-1000 if they finish on time or early. This creates positive incentive rather than adversarial penalty situations. Many Ottawa contractors respond better to bonuses than penalties.

You can also structure progress payments to protect yourself. Hold back larger portions of payment until completion, following Ontario's Construction Lien Act requirements (10% holdback for 60 days minimum). This gives contractors strong incentive to finish promptly.

Red Flags to Watch For

Be wary of contractors who refuse any completion date discussion or want extremely loose language like "approximately" or "weather permitting" without specific parameters. Professional contractors should be able to commit to realistic timelines.

Also watch for contractors who readily agree to aggressive penalty clauses - they may be planning to walk away from your job if it goes sideways, leaving you with an unfinished project and no easy recourse.

Ottawa-Specific Considerations

Factor in City of Ottawa inspection schedules when setting completion dates. Building inspectors typically book 2-3 days out, and failed inspections can add a week to your timeline. ESA electrical inspections (required for most renovations) also need 2-3 days notice and cost around $150-200.

For projects requiring multiple permits or inspections, build in buffer time. A kitchen renovation requiring electrical, plumbing, and building permits might need an extra 1-2 weeks just for inspection coordination.

The bottom line: include completion dates for accountability, but focus more on choosing a contractor with a solid track record of finishing on time than on penalty clauses that may be difficult to enforce.