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 te...
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 abo...
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 ...
Most red flags can be confirmed or cleared with twenty minutes of verification. Look up the business name on Service Ontario to confirm it is registered and how long it has operated — a name registered under twelve months while claiming decades of experience is a warning. Request a current WSIB clearance certificate and verify it directly through WSIB, and ask for a certificate of commercial general liability insurance ($2M+) that names you as additional insured, confirmed by calling the broker ...
Do not accept a photocopied certificate at face value. Call WSIB and the insurance broker yourself to confirm coverage is active and current. Lapsed or fake certificates are common, and the liability for an uninsured worker's injury lands on you.
Online reviews are useful only when you read them critically. Look for a steady history of detailed reviews with photos across Google, HomeStars, and the BBB spanning at least two years — not a sudden burst of five-star reviews appearing after a string of complaints. Be skeptical of generic praise w...
Knowing what right looks like makes red flags obvious by contrast. Strong Ottawa contractors provide a detailed written quote that breaks down labour, materials, and allowances; carry and readily show WSIB and liability coverage; pull the proper City of Ottawa and ESA permits as a matter of course; and propose a milestone-based payment schedule with a modest deposit. They communicate in writing, answer questions without defensiveness, give realistic timelines that account for permits and lead ti...
Money is where bad contractors reveal themselves. Be wary of deposits over 25% (10-15% is normal), cash-only or e-Transfer-only demands, and requests for additional draws ahead of completed milestones — these patterns fund contractors who run project-to-project and can collapse mid-job, taking your deposit with them. A legitimate payment schedule ties each payment to verifiable progress, not the calendar, and holds back 10% under the Construction Act on larger jobs. Refusing to provide subcontra...
A contractor demanding 40-50% up front is often using your deposit to finish someone else's job. Keep deposits to 10-15%, tie payments to milestones, and you remove the main mechanism by which homeowners lose money to contractors who disappear.
In Ontario, the gaps that hurt homeowners most are insurance, WSIB, and permits. A contractor without WSIB coverage means an injured worker on your property can pursue you, and your home insurance may not respond. No liability insurance means damage to your home during the work is your problem. Skip...
If a project goes wrong, you have recourse. Start by documenting everything in writing and sending a clear cure notice referencing your contract terms. Unresolved disputes can go to the Better Business Bureau and to consumer-protection complaints through the Ontario Ministry of Public and Business Service Delivery. For unsafe or unpermitted electrical work, contact the Electrical Safety Authority; for building-code and permit issues, contact City of Ottawa Building Code Services. Subcontractor l...
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'?