What should be in a contract with my renovation contractor in Ottawa?

Every renovation contract in Ottawa should include specific project details, payment schedules, permit responsibilities, and protection clauses that comply with Ontario's Consumer Protection Act and Construction Act.

Essential Contract Elements for Ottawa Renovations

Your contract must clearly identify both parties with full legal names and addresses, plus the contractor's business license number and WSIB account number. Include the complete property address where work will be performed and detailed scope of work with specific materials, brands, and quality grades specified.

Payment terms are crucial under Ontario law. Never pay large amounts upfront - legitimate contractors typically request 10-15% down, with progress payments tied to completion milestones. The contract must specify the total price, payment schedule, and your right to hold back 10% for 60 days after substantial completion as required by Ontario's Construction Act.

Permits and Licensing Responsibilities

Your contract should clearly state who obtains permits through the City of Ottawa (613-580-2424). Most contractors handle this, but verify they're properly licensed - electrical work requires an ESA Licensed Electrical Contractor, gas work needs TSSA certification, and general contractors should have WSIB coverage. The contract should specify that all work meets Ontario Building Code requirements and includes necessary inspections.

Timeline details matter significantly. Include start and completion dates with reasonable allowances for weather, permit delays, or change orders. Specify what constitutes substantial completion and final completion for your holdback period.

Protection and Quality Clauses

Include warranty terms - typically one year for workmanship and longer for major components. The contract should specify cleanup responsibilities, protection of existing finishes, and daily work hours (important in Ottawa neighborhoods with noise bylaws).

Change order procedures must be detailed. Any modifications should require written approval with cost adjustments clearly documented. This prevents surprise charges and scope creep that commonly leads to disputes.

Insurance and Liability Coverage

Verify the contractor carries general liability insurance (minimum $2 million) and WSIB coverage. Request certificates of insurance naming you as additional insured. The contract should specify who's responsible for damage to existing property or utilities.

Lien protection is essential under Ontario's Construction Act. Include language requiring the contractor to provide lien waivers from subcontractors and suppliers upon final payment. This protects your property from construction liens.

Cancellation and Dispute Resolution

Under Ontario's Consumer Protection Act, you have cooling-off rights for contracts signed at your home. Include dispute resolution procedures - many Ottawa contractors agree to mediation through the Better Business Bureau before litigation.

The contract should specify what happens if work stops due to weather, permit delays, or other issues beyond either party's control.

Red Flags to Avoid

Never sign contracts with excessive upfront payments, vague scope descriptions, or missing license numbers. Avoid contractors who pressure you to sign immediately or claim permits aren't needed for obvious permit-required work.

Get everything in writing - verbal promises aren't enforceable. A proper contract protects both you and your contractor by setting clear expectations and legal obligations under Ontario law.

For complex renovations, consider having a lawyer review the contract, especially for projects over $50,000 or involving structural changes requiring City of Ottawa approvals.