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

In Ottawa, homeowners need to watch for several critical red flags that signal potential contractor scams - from door-to-door solicitation to demands for full payment upfront.

The most dangerous red flag is contractors who show up unannounced at your door, especially after storms or in neighborhoods where work is happening. Legitimate Ottawa contractors are typically booked weeks or months in advance and don't need to canvas neighborhoods. These door-knockers often claim they have "leftover materials" from a nearby job or noticed something wrong with your roof - classic scam tactics.

Payment demands are another major warning sign. Never work with contractors who want full payment upfront or demand cash only. In Ontario, the Construction Lien Act actually protects you by allowing a 10% holdback for 60 days after completion. Legitimate contractors understand this and structure payments accordingly - typically 10% down, progress payments tied to milestones, and final payment after completion. Anyone demanding 50% or more upfront is likely running a scam.

Always verify licensing through official channels. For electrical work, check the ESA website at esasafe.com/contractor-locator to confirm they're a Licensed Electrical Contractor (LEC). For gas work, verify TSSA certification at tssa.org. If they can't provide license numbers or get defensive about verification, walk away. Legitimate contractors are proud of their credentials and happy to provide them.

Be extremely wary of contractors who discourage permits or claim permits aren't needed. In Ottawa, most significant work requires permits through the City's Building Code Services (613-580-2424). Scammers avoid permits because they can't get them due to lack of proper licensing, insurance, or because they plan to do substandard work. Check permit requirements at ottawa.ca/building before any work begins.

Insurance and WSIB clearance are non-negotiable. Every legitimate contractor in Ontario should carry liability insurance and provide a WSIB clearance certificate (available at wsib.ca/clearances). Scammers often claim they're "covered under the homeowner's insurance" - this is false and leaves you liable for injuries or damage.

Watch for high-pressure sales tactics and artificial urgency. Phrases like "this price is only good today" or "we need to start immediately" are classic manipulation techniques. Legitimate contractors provide written estimates, give you time to consider, and don't pressure immediate decisions.

Be suspicious of quotes that seem too good to be true or are significantly lower than others. In Ottawa's current market, bathroom renovations typically range $15,000-$50,000, kitchens $25,000-$80,000, and basement finishing runs $40-$80 per square foot. Quotes dramatically below market rates often indicate corner-cutting, unlicensed work, or bait-and-switch tactics.

Red flags in contracts include vague scope descriptions, no specific materials listed, missing start/completion dates, or unusual payment terms. Legitimate contracts specify everything clearly and comply with Ontario's Consumer Protection Act, which gives you a 10-day cooling-off period for contracts signed at your home.

Finally, trust your instincts about communication and professionalism. Scammers often use high-pressure tactics, avoid direct answers about licensing, provide only cell phone numbers, or can't provide local references. Legitimate Ottawa contractors have established businesses, proper business addresses, and are happy to provide references from recent local projects.

If something feels wrong, contact the City of Ottawa's Building Code Services at 613-580-2424 or check with Consumer Protection Ontario at ontario.ca/consumer before proceeding. It's always better to take time verifying credentials than to become a victim of contractor fraud.