What should be included in a renovation contract?

A renovation contract in Ottawa should include specific payment terms, detailed scope of work, and all required licensing and permit information to protect you under Ontario law.

Your renovation contract is your primary protection against disputes, cost overruns, and substandard work. In Ontario, construction contracts must comply with the Construction Act, which includes mandatory holdback provisions and lien rights.

Essential Contract Elements for Ottawa Renovations

Contractor Information and Licensing
Include the contractor's full legal business name, address, phone number, and all relevant license numbers. For electrical work, verify their ESA License Electrical Contractor (LEC) number through esasafe.com. For gas work, confirm TSSA certification numbers. Always verify WSIB clearance certificate numbers - call 1-800-387-0750 to confirm coverage is current.

Detailed Scope of Work
The contract must specify exactly what work will be performed, including materials, finishes, and quality standards. Don't accept vague language like "renovate bathroom" - instead require specifics like "install Kohler Devonshire toilet, model K-3837" and "12x24 porcelain tile with 1/8" grout lines." Include what's NOT included to avoid surprise charges.

Payment Schedule and Holdback
Under Ontario's Construction Act, you must hold back 10% of each payment until 60 days after substantial completion. Never pay large amounts upfront - a typical schedule might be 10% to start, progress payments tied to completion milestones, and final payment minus holdback upon completion. Avoid contractors demanding 50% or more upfront, as this often indicates cash flow problems.

Permits and Approvals
Specify who obtains permits and include permit numbers once issued. In Ottawa, building permits typically take 15-25 business days for renovations. The contract should state that work cannot begin until permits are approved. Include City of Ottawa Building Code Services contact (613-580-2424) for verification.

Timeline and Completion
Include realistic start and completion dates with allowances for permit delays and weather. Specify penalties for delays beyond the contractor's control versus those that aren't. Many Ottawa contractors build in 2-3 week buffers for winter weather delays.

Change Order Process
Establish how changes will be handled - require written approval for any additions or modifications with updated costs and timeline impacts. This prevents surprise bills and scope creep.

Warranty and Deficiency Provisions
Include warranty periods for different components (typically 1 year for workmanship, longer for major systems). Specify how deficiencies will be addressed and timelines for completion.

Insurance and Safety
Confirm the contractor carries liability insurance (minimum $2 million) and WSIB coverage. Include safety protocols and who's responsible for job site security and cleanliness.

Red Flags to Avoid

Never sign contracts with door-to-door solicitors, those demanding full payment upfront, or contractors who can't provide proper licensing documentation. Avoid contracts without specific completion dates or those with excessive penalty clauses favoring the contractor.

For complex renovations in Ottawa, consider having a construction lawyer review contracts over $50,000. The Law Society of Ontario (lso.ca) can help you find qualified legal counsel.

Contact City of Ottawa Building Code Services at 613-580-2424 or visit ottawa.ca/building for current permit requirements and fee schedules before signing any renovation contract.