What are the red flags that a contractor might be a scam?

Red flags for contractor scams in Ottawa include door-to-door solicitation, demands for full payment upfront, no fixed business address, and lack of proper Ontario licensing through ESA or TSSA.

Here are the major warning signs that should make Ottawa homeowners immediately cautious:

Solicitation and Pressure Tactics
Legitimate contractors in Ottawa don't go door-to-door offering services. Be extremely wary of anyone who shows up unannounced claiming they "noticed work needed on your roof" or have "leftover materials from a nearby job." Scammers often create artificial urgency, saying prices are only good "today" or that you must decide immediately. Real contractors understand that home renovations require time to consider and compare quotes.

Payment Red Flags
Never pay the full amount upfront. Ontario's Construction Lien Act requires a 10% holdback for 60 days after substantial completion specifically to protect homeowners. Legitimate Ottawa contractors typically ask for 10-15% down, with progress payments tied to completion milestones. Be suspicious of contractors demanding cash payments, unusually large deposits, or payment before any work begins. Scammers often disappear once they have your money.

Licensing and Insurance Issues
In Ontario, electrical contractors must have ESA (Electrical Safety Authority) licenses, and gas technicians need TSSA certification. Always verify licenses at esasafe.com/contractor-locator for electrical work or tssa.org for gas/HVAC. Legitimate contractors carry WSIB coverage and liability insurance - ask to see current certificates. If they can't provide proof of licensing and insurance, walk away immediately.

Business Legitimacy Concerns
Scammers often operate without fixed business addresses, using only cell phones and P.O. boxes. Legitimate Ottawa contractors have established business locations, landline phones, and professional websites. Be cautious of contractors who can't provide local references from recent Ottawa-area projects. Check if they're registered with the Better Business Bureau and search online for reviews and complaints.

Permit and Inspection Avoidance
Reputable contractors know Ottawa's permit requirements and factor them into quotes. Be suspicious of anyone suggesting you can "skip the permits" or avoid City of Ottawa inspections. This is illegal and leaves you liable for code violations. Legitimate contractors will explain what permits are needed and either obtain them or guide you through the process with City of Ottawa Building Code Services (613-580-2424).

Quote and Contract Issues
Scammers often provide verbal estimates or handwritten quotes on scraps of paper. Professional contractors provide detailed written quotes specifying materials, labor, timelines, and permit costs. Be wary of quotes significantly lower than others - they're often too good to be true. Legitimate contractors don't ask you to sign contracts immediately or pressure you to decide before getting multiple quotes.

Verification Steps for Protection
Always verify contractor credentials through official channels: ESA licensing at esasafe.com, TSSA certification at tssa.org, and WSIB clearance at wsib.ca/clearances. Check with the City of Ottawa (ottawa.ca/building) about permit requirements for your project. Get at least three written quotes and never feel pressured to decide quickly.

If something feels wrong, trust your instincts. Legitimate Ottawa contractors welcome questions about licensing, insurance, and references because they have nothing to hide. When in doubt, contact Ontario's consumer protection office or the Better Business Bureau before signing anything or making payments.