Contractor scams cost Canadian homeowners millions of dollars annually, and Ottawa is not immune. From door-to-door roofing scammers after storms to disappearing contractors who take deposits and never return, understanding common fraud tactics protects your investment. While the vast majority of Ottawa contractors are honest professionals, knowing how to verify legitimacy, recognize red flags, and protect yourself contractually is essential before handing over significant money. This guide covers the most common contractor scams seen in Ottawa, specific verification steps for local contractor...
Understanding common tactics helps you recognize fraud before it costs you.
Storm chasers — door-to-door salespeople after severe weather offering immediate repairs at inflated prices, often from out of province with no local presence. Deposit-and-disappear — taking large upfront deposits and either never starting work or abandoning partway through. Bait-and-switch pricing ...
These steps verify contractor legitimacy before hiring.
Request and verify insurance certificates directly with the insurance company — not just from the contractor. Check WSIB coverage through the WSIB clearance certificate. Verify business registration through the Ontario business registry. Search the contractor's name and company on court records for ...
A proper contract protects both parties.
Never pay more than 10 to 15 percent as a deposit (maximum $5,000). Structure payments based on milestones (after framing, after drywall, after completion). Hold 10 percent as a holdback for 45 days after completion per Ontario's Construction Lien Act. Get everything in writing — scope, materials, t...
If you suspect fraud, act quickly.
Document everything — photos, texts, emails, contracts, payments. File a complaint with the Ontario Ministry of Public and Business Service Delivery. Report to the Better Business Bureau. File a police report if the contractor has disappeared with your money. Consult a lawyer about your options unde...
Demanding large upfront deposits, no written contract, no insurance proof, pressure to sign immediately, no physical business address, and unusually low quotes.
Never more than 10 to 15 percent or $5,000, whichever is less. Reputable contractors do not need large deposits — they have lines of credit for materials.
Verify insurance directly, check WSIB clearance, search business registration, check BBB, read online reviews, and contact local references.
Avoid cash payments — they eliminate your paper trail for warranty claims, insurance disputes, or legal action. Always get receipts.
Ontario's Construction Lien Act requires a 10 percent holdback for 45 days after completion to protect against unpaid subcontractor claims.