Should the contract include a completion date with penalties?

Yes, your Ottawa construction contract should include a specific completion date with reasonable penalties for delays, but structure it carefully to protect both parties.

Most experienced contractors in Ottawa will agree to a completion date with penalty clauses, especially for larger projects like kitchen renovations or additions. However, the key is making the terms fair and enforceable under Ontario contract law.

What to Include in Your Ottawa Contract

Your completion clause should specify the substantial completion date (when the work is essentially finished and usable) rather than final completion (when every tiny detail is perfect). Include language like "substantial completion by [date], with liquidated damages of $X per day for delays beyond contractor's control."

Typical penalty amounts in Ottawa range from $50-200 per day for residential projects, depending on the project size and your actual costs. For example, if you're paying for temporary accommodation during a kitchen renovation, the penalty might cover those hotel costs.

Essential Exceptions to Include

Your contract must include reasonable exceptions for delays beyond the contractor's control. In Ottawa's climate, weather delays are common - you can't pour concrete in -20°C or install roofing during ice storms. Other standard exceptions include permit delays from the City of Ottawa (which can add 2-4 weeks), change orders you request, and material delivery delays.

The City of Ottawa Building Code Services (613-580-2424) sometimes takes longer than expected for inspections, especially during busy spring/summer seasons. Your contract should account for these municipal delays.

What Makes Penalties Enforceable

Ontario courts will only enforce "liquidated damages" that represent a reasonable estimate of your actual losses, not punitive amounts. If you're living elsewhere during the work, document those costs. If you're losing rental income on a basement apartment, calculate that amount. Excessive penalties (like $1000/day on a $20,000 project) won't hold up in court.

Red Flags to Avoid

Be wary of contractors who refuse any completion date or penalty clause - this often indicates poor project management or overcommitment. However, also avoid contractors who agree to unrealistic timelines just to win the job. A reputable Ottawa contractor will give you honest timelines based on current permit processing times and material availability.

Balancing Protection with Fairness

Consider including bonus clauses for early completion alongside penalties for delays. This creates positive incentive. Also include a "cure period" - perhaps 5-7 days after the deadline before penalties begin, allowing for minor delays.

Remember that under Ontario's Construction Act, you're already protected by holdback requirements (10% for 60 days after substantial completion), which provides leverage for getting final details completed.

For complex projects requiring multiple City of Ottawa permits, work with contractors who understand local timelines and build realistic schedules from the start.