Always get at least 3 written estimates from different contractors.
Estimates should have a description of the work to be done, an itemized list of products and services and their prices. Make sure that everything you’re expecting is listed.
Under Ontario law, any home renovation contract worth more than $50 must be in writing. Be prepared to pay for any extra materials or any work that are not in the contract. If something isn’t written in your contract, you may not get it.
Make sure your contract includes:
the contractor’s name, address and contact information
a thorough description of the project with details of the work to be done and the materials to be used
a clear description of any warranties
the total cost and terms of payment
a work schedule, including start and completion dates
a payment schedule, including the deposit amount
who is responsible for clean up after the job is finished
all sub-trades that will be contracted out and who will pay for those sub-trades
Under the Consumer Protection Act (CPA) if an estimate is included as part of a home renovation contract, the final price for all goods and services cannot be more than 10% over the original estimate unless you have agreed to new work or a new price.
This means that it’s important for you to insist that the written estimate is included in your contract. If new work comes up, your contractor should discuss it with you and ask you to approve and sign a change to the contract, including a new estimate.
Under the Construction Lien Act you can retain 10% of the contract price for 45 days after the project is done. This helps ensure the quality of the work. It also protects you in case the contractor doesn’t pay the sub-trades or suppliers working on your project.
If your contractor has told you that the work being done qualifies for a government rebate or credit, it is your responsibility to make sure that you qualify for it. Check with the government ministry, department or agency offering the tax credit, rebate or grant.
If you are doing major renovation work:
it’s best to have a lawyer go over your contract, explain it to you and advise you on your rights before you sign
check with your city or town hall whether you will need a building permit. It’s your responsibility to get building permits and meet any legal requirements you’ll need to renovate. If you want the contractor to get permits on your behalf, make sure it’s is spelled out in the contract and don’t allow construction to begin until you’ve seen them
check with your city about zoning by-laws and rules
If you sign a home renovation or repair contract worth $50 or more in your home,you have the right to a 10 calendar-day cooling-off period. You may cancel this contract for any reason and without having to pay any cancellation fees within these 10 days.
However, if you hire a contractor and the work was started during the cooling-off period, you can cancel the contract but you will be responsible for reasonable compensation for work and materials that the contractor has provided.
Ask the right questions
Can I get references from people who have had a similar work done in their homes?
Will my estimate be included as part of my contract?
Will you get any building permits on my behalf? Can you say so in my contract?
How will we handle any disagreements or disputes? Can you include that in the contract?
If I cancel my contract after the work is started, will I have to pay for any work or materials?
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