A weak contractor contract is the #1 cause of Ottawa renovation disputes. This guide covers every clause your contract should include, the Ontario laws that govern it (Construction Act, Consumer Protection Act), and red-flag wording to refuse.
(1) Full legal name of contractor's business (verify at Service Ontario corporate search). (2) Master Business Licence number. (3) HST registration number (any contractor billing >$30K/year must have one — no HST # is a tax-evasion red flag). (4) Site address and homeowner full legal name(s). (5) Date of contract and project start/completion dates. (6) Contractor's mailing address and email (not just phone). (7) Liability insurance policy number and insurer name.
(1) Detailed written scope (attach your scope-of-work document as Schedule A). (2) Inclusions and exclusions clearly listed. (3) Materials specifications (brand/model where decided, allowances where not). (4) Quality standards (referenced to specific OBC sections or industry standards). (5) Site clean-up and debris removal scope. (6) Working hours and days. (7) Use of homeowner facilities (washroom, electrical, water) clearly defined.
(1) Total contract price (lump-sum) OR cost-plus formula with stated markup percentage. (2) Payment schedule tied to verifiable progress milestones (not arbitrary dates). (3) Deposit amount and what it funds (be specific). (4) Change order procedure: written-only, signed by both parties before work begins, markup percentage capped at base contract rate. (5) Ontario Construction Act 10% holdback for 45 days post-completion (mandatory on $50K+ projects). (6) Late payment terms and any interest.
(1) Start date and substantial completion date. (2) Liquidated damages for late completion (typical $100-$500/day for residential, but enforceability requires reasonable estimate of actual damages — talk to a lawyer for projects over $200K). (3) Force majeure clause (weather, supply chain, pandemic). (4) Right to terminate for non-performance with cure period (typically 7-15 days written notice). (5) Substantial completion definition (typically: ready for intended use, deficiencies <3% of contra...
(1) Workmanship warranty (industry minimum 1 year; reputable contractors offer 2-3 years on labour). (2) Material warranties passed through from manufacturer. (3) Tarion warranty for new construction and major renos. (4) Process for warranty claim response (typical: 5 business days to acknowledge, 15 to schedule fix). (5) Lien rights waiver from subcontractors (mandatory under Construction Act before final payment release).
'Contractor may substitute equivalent materials at sole discretion' (refuse — you pick equivalents). 'Final acceptance is at contractor's sole discretion.' 'Homeowner waives all claims arising from this contract.' 'Disputes resolved by binding arbitration in [city far from Ottawa].' 'Contract auto-renews.' 'Deposit non-refundable under any circumstances.' All of these shift risk to you in unenforceable but problematic ways — strike or modify before signing.
Yes — any project above $50 requires a written contract under Ontario Consumer Protection Act. Verbal agreements are not enforceable in court for most consumer construction work. Always insist on written, signed contracts.
For projects over $50K: yes, $400-$1,200 legal review fee can save tens of thousands in dispute exposure. For projects over $200K: mandatory in our opinion. For projects under $25K: contractor's standard contract is usually fine if it includes the basics.
Construction Act Section 22 requires homeowners on $50K+ projects to hold back 10% of each progress payment for 45 days post-completion. This funds any subcontractor lien claims and gives leverage for warranty work. Most reputable contractors price-in the holdback expectation.
Only through signed written change orders. Verbal change requests are not binding. Always require: written change description, additional cost, schedule impact, signature by both parties BEFORE the change work begins. Cap change-order markup at the same rate as base contract.
Document everything in writing (photos, dated notes, email correspondence). Issue formal written cure notice (typically 7-15 days). If unresolved, options: small claims court (under $35K), Construction Act lien process (for outstanding work value), formal litigation, or BBB/consumer complaint. Contract terms determine your specific recourse.