Why do some contractors not want to sign a written contract?

Many contractors avoid written contracts because it limits their ability to change terms, add costs, or walk away from problems - which should be a major red flag for Ottawa homeowners.

In Ontario, any construction project over $50 should have a written contract under the Consumer Protection Act, and for good reason. When contractors resist putting agreements in writing, they're often trying to maintain flexibility that benefits them at your expense.

Common Reasons Contractors Avoid Written Contracts

Scope Creep Protection - Without written specifications, contractors can easily claim that additional work wasn't included in the original agreement. They might quote you for "bathroom renovation" but then charge extra for every fixture, tile removal, or unexpected issue that any experienced contractor should anticipate.

Payment Flexibility - Verbal agreements make it easier to demand large upfront payments or change payment schedules. Ontario's Construction Lien Act requires specific holdback procedures (10% held for 60 days after completion), but contractors who avoid contracts often try to circumvent these consumer protections.

License and Insurance Hiding - Legitimate written contracts must include the contractor's business registration, WSIB clearance number, and insurance details. Contractors operating without proper licensing or insurance will avoid contracts that would expose their non-compliance with Ontario regulations.

Quality Standards Avoidance - Without written specifications about materials, timelines, and workmanship standards, it becomes nearly impossible to hold contractors accountable for poor work or delays.

Red Flags in Ottawa's Market

Be especially wary of contractors who say "we've worked this way for 20 years" or "handshake deals are better." Ottawa's construction market has legitimate, professional contractors who understand that written contracts protect both parties. Those who resist are often:

• Unlicensed or operating without proper ESA/TSSA certifications
• Lacking WSIB coverage or proper insurance
• Planning to use substandard materials or cut corners
• Inexperienced with permit requirements through City of Ottawa Building Code Services

What Ottawa Homeowners Should Demand

Every contract should specify the work scope, materials (including model numbers), timeline, total cost, payment schedule, permit responsibilities, and cleanup procedures. For electrical work, ensure the contractor's ESA license number is included. For gas work, verify their TSSA certification is documented.

The contract should also outline who obtains permits through ottawa.ca/building and how change orders will be handled. Never accept "we'll figure it out as we go" - that's not how professional contractors operate in Ottawa's regulated construction environment.

Bottom line: Contractors who won't sign written contracts are telling you they don't want to be held accountable. In Ottawa's competitive market, you can easily find licensed, insured professionals who welcome detailed contracts because they protect everyone involved.

Contact City of Ottawa Building Code Services at 613-580-2424 if you need guidance on permit requirements that should be included in your contract.