Most Ottawa contractor disputes are preventable — the warning signs were there before signing the contract. Here are 20 red flags grouped by stage, with what each typically predicts about project outcomes.
(1) No physical business address or only a PO box. (2) Refuses to provide insurance + WSIB certificates in writing. (3) HST not charged (means under $30K/year revenue OR tax evasion). (4) Cash-only or large e-Transfer-only payment requests. (5) Pressure to sign immediately ('this price only today'). (6) Verbal quote refusing written estimate. (7) No website or social proof + zero Google reviews after years claimed in business. (8) References they refuse to share, or share but can't be reached. (...
(11) Contract is generic template with blanks unfilled or signed handshake-style. (12) No detailed scope-of-work attached. (13) No payment schedule tied to milestones. (14) Vague allowances ('tile budget $5/sq ft' when market is $12-25). (15) No change-order procedure or markup cap. (16) Warranty terms missing or limited to '90 days workmanship.' (17) No mention of Ontario Construction Act 10% holdback. (18) Indemnification clauses shifting all risk to homeowner. (19) Mandatory arbitration in ju...
Slow start (signed contract but no work after promised start date — biggest warning sign of overcommitted contractor). Subcontractors arriving without proper insurance/WSIB. Work proceeding without inspections being scheduled. Repeated requests for additional deposits/draws ahead of milestone completion. Disappearing for days at a time. Refusing to provide subcontractor lien waivers. Quality declining as project nears completion. Pressuring you to release final payment before deficiencies fixed.
Slow response times (more than 48 hours for non-urgent, more than 4 hours for urgent during project). Defensive responses to reasonable questions. Refusing written communication ('let's just talk on the phone'). Disagreements escalating to personal attacks. Lies about small things (predicts lies about large things). Promises that don't materialize. Inability to provide simple documentation when asked.
Pre-contract: walk away — there are always other contractors. Mid-contract: document in writing (email everything), invoke contract terms (cure notices, holdback rights), consider lawyer consultation. Project-stage: stop additional payments until issues are addressed in writing, photograph all work daily, prepare deficiency list, escalate to BBB/CCBO/Tarion if applicable. If contractor financially fails: get lien waivers from any subs they've paid, register your own homeowner's lien rights, cont...
Cash-only or e-Transfer-only payment requests + no WSIB + no formal insurance certificate. This combination almost always indicates an unincorporated, uninsured operator. Any injury or property damage becomes your homeowner insurance problem. Walk away.
Often yes. Any contractor billing over $30,000/year in Canada is required to register for and charge HST. Contractors claiming to have done $100K+/year in business 'but not charging HST' are either lying about revenue or evading taxes — both predict bigger trust issues.
Above 25% on contracts under $100K. Reputable contractors with healthy cash flow don't need that much upfront. Above 50% on any size project is a major financial-trouble warning sign — these contractors are using your deposit to fund previous projects.
Combined with other red flags, yes. A contractor claiming 10+ years in business but with zero Google reviews and no HomeStars profile is hiding something (could be reviews under a previous business name they're trying to escape). Cross-reference business registration date with claimed experience.
Refusing to share references at all. Sharing references that can't be reached. References that sound coached or describe a different project type than yours. Always ask for 3 recent references on similar-scope projects, call them yourself, and ask 'what would you do differently'?