A weak contract is the number one cause of Ottawa renovation disputes. When the scope is vague, the payment schedule is arbitrary, and the change-order rules are missing, every disagreement becomes a stand-off with no paper to settle it. This 2026 guide covers every clause your Ottawa contractor contract should include, the Ontario laws that govern it — the Construction Act and the Consumer Protection Act — and the red-flag wording you should refuse to sign. A strong contract is not about distrust; it is the shared rulebook that keeps a good contractor and a reasonable homeowner on the same pa...
Every contract starts by identifying exactly who is bound by it. Insist on: the full legal name of the contractor's business (verify it at Service Ontario corporate search), their Master Business Licence number, and their HST registration number — any contractor billing more than $30,000 per year must have one, and a missing HST number is a tax-evasion red flag that should end the conversation. Include the site address, the homeowner's full legal name(s), the contract date, and the project start...
List the liability insurer and policy number in the contract, then call the insurer to confirm the policy is active and covers $2M. Separately, require a current WSIB clearance certificate and verify it directly on the WSIB site — coverage protects you from liability if a worker is injured on your O...
The scope clause is where most disputes are won or lost. Attach your detailed scope-of-work document as Schedule A and reference it directly in the contract. Spell out inclusions and exclusions in plain language so nothing is left to interpretation. List material specifications with brand and model where decided, and allowances where not. Reference quality standards to specific Ontario Building Code sections or recognized industry standards rather than vague terms like 'workmanlike.' Define site...
A contract that lists only what is included quietly leaves everything else as a future extra. Force the contractor to name exclusions explicitly: permit fees, disposal, asbestos or knob-and-tube remediation common in older Ottawa homes, painting, and landscape restoration. Naming exclusions upfront ...
Money clauses protect both sides. State the total contract price as a lump sum, or a cost-plus formula with a clearly stated markup percentage. Tie the payment schedule to verifiable progress milestones — framing complete, rough-in inspected, drywall closed — rather than arbitrary calendar dates. Specify the deposit amount and exactly what it funds; a deposit above 15-20% of contract value is a warning sign. Define the change-order procedure: written only, signed by both parties before work begi...
On projects of $50,000 or more, the Construction Act requires you to hold back 10% of each progress payment for 45 days after substantial completion. This holdback funds any subcontractor or supplier lien claims and gives you leverage for warranty and deficiency work. Most professional contractors p...
Pin down the schedule. State the start date and the substantial-completion date, and define what 'substantial completion' means so it cannot be argued later. Consider liquidated damages for late completion — typically $100-$500 per day for residential work — but note that enforceability requires the figure to be a reasonable pre-estimate of actual damages, so consult a lawyer on projects over $200,000. Include a force-majeure clause covering weather, supply-chain delays, and other events outside...
Ottawa's climate shapes realistic timelines. Foundation pours, footings, exterior concrete, and decks are difficult between December and March, and contractors often charge cold-weather premiums or pause exterior work entirely. A contract that promises an exterior addition completed in February is e...
Your contract must state clearly who pulls the City of Ottawa building permit, who pays the fees (commonly $1,800-$5,500 on larger residential projects), and who arranges inspections. Require separate Electrical Safety Authority (ESA) permits for wiring ($150-$485) and City plumbing permits ($150-$385) where applicable, pulled by the licensed trades doing the work. The contract should obligate the contractor to build to current Ontario Building Code, pass all required inspections — footings, fra...
Get the warranty in writing or it does not exist. Specify the workmanship warranty period — one year is the Ontario minimum, and reputable Ottawa firms offer two to three years — running from substantial completion. State that materials carry their manufacturer warranties, passed through to you. Define a deficiency process: a walk-through at completion, a written deficiency list, and a fixed window for the contractor to correct items. Spell out the warranty claim procedure, including how to noti...
Schedule a formal walk-through before releasing final payment. Inspect every room with the contractor, note every defect — paint touch-ups, caulking gaps, drywall cracks at seams, misaligned doors, loose hardware — and record them on a written deficiency list both parties sign. Set a fixed correctio...
Yes. Under Ontario's Consumer Protection Act, any consumer agreement above $50 should be in writing, and verbal construction agreements are largely unenforceable in court. Always insist on a written, signed contract with a scope attached before any deposit changes hands.
For projects under $25K a solid standard contract is usually enough. For projects over $50K, a $400-$1,200 legal review can save tens of thousands in dispute exposure, and for projects over $200K a lawyer review is essentially mandatory given the Construction Act stakes.
On projects of $50K or more, the Construction Act requires you to hold back 10% of each progress payment for 45 days after substantial completion. It funds any subcontractor lien claims and gives you leverage for warranty work. Reputable contractors expect and plan for it.
Only through signed written change orders. Verbal change requests are not binding. Require a written description, the added cost, the schedule impact, and both signatures before the changed work begins — and cap change-order markup at your base-contract rate.
Payments tied to verifiable milestones such as framing complete, rough-in inspected, and drywall closed — not arbitrary dates. Keep the deposit at or below 15-20%, and preserve the 10% Construction Act holdback on projects of $50K or more.