What should be included in a renovation contract?

A solid renovation contract in Ottawa should include specific project details, payment terms, permit responsibilities, and legal protections to safeguard your investment and ensure compliance with Ontario regulations.

Your renovation contract serves as your primary protection against disputes, cost overruns, and regulatory issues. In Ontario, construction contracts are governed by specific laws including the Construction Act and Consumer Protection Act, making certain clauses essential for your protection.

Essential Contract Elements for Ottawa Renovations

Project Scope and Specifications
The contract must detail exactly what work will be performed, including specific materials, brands, colors, and quality grades. Vague language like "quality materials" or "standard installation" leaves room for disputes. Include detailed drawings, specifications, and material lists as attachments. For Ottawa projects, ensure the scope clearly states compliance with Ontario Building Code requirements.

Permit and Licensing Responsibilities
Clearly specify who obtains building permits from the City of Ottawa (613-580-2424). The contractor should handle permit applications for their licensed trades, but you need this in writing. Include ESA electrical permit responsibilities if electrical work is involved, and TSSA permits for gas or HVAC work. The contract should state that all work will be performed by properly licensed tradespeople and include their license numbers.

Payment Schedule and Holdback Protection
Ontario's Construction Act requires a 10% holdback on each payment for 60 days after substantial completion. Your contract should reflect this protection - never agree to waive holdbacks. Structure payments based on completion milestones, not calendar dates. A typical schedule: 10% down payment, progress payments at 25%, 50%, 75% completion, final payment minus holdback at substantial completion, holdback release after 60 days. Avoid contractors demanding large upfront payments or full payment before completion.

Timeline and Completion Dates
Include realistic start and completion dates with provisions for weather delays and permit approval times. City of Ottawa permits typically take 15-25 business days for renovations, longer for complex projects. Build this into your timeline. Include penalty clauses for unreasonable delays, but ensure they're fair and account for circumstances beyond the contractor's control.

Change Order Procedures
Establish a formal process for handling changes to the original scope. All changes must be in writing, with detailed cost breakdowns and timeline impacts. This prevents surprise charges and scope creep. Include your right to approve or reject changes before work proceeds.

Insurance and WSIB Coverage
Require proof of current liability insurance (minimum $2 million) and WSIB clearance certificates. In Ontario, contractors must provide WSIB clearance to protect you from workplace injury claims. Verify these documents are current and contact the providers to confirm coverage.

Warranty and Defect Resolution
Include specific warranty periods for different work types - typically one year for workmanship, longer for major systems. Detail the process for addressing defects and the contractor's response timeline. This is crucial for protecting your investment after project completion.

Lien Protection Clauses
Include provisions requiring the contractor to provide statutory declarations and lien waivers from subcontractors and suppliers. This protects your property from construction liens if the contractor fails to pay their bills.

Red Flags to Avoid

Never sign contracts with door-to-door solicitors, those demanding full payment upfront, or contractors without proper Ontario licensing. Avoid contracts with vague scope descriptions, no permit references, or waived holdback provisions. Be wary of prices significantly below other quotes - this often indicates corners will be cut or extras will be added later.

For complex renovations in Ottawa, consider having a lawyer review your contract before signing. The investment in legal review often prevents much larger problems down the road.

For verified contractors who understand proper contracting practices, check our directory at https://ottawaconstructionnetwork.com/directory.