The short checklist
- At least three written estimates and three references, which is what Ontario's consumer guidance recommends.
- The Consumer Beware List: search the business name and the owner's name.
- WSIB coverage and liability insurance, confirmed, not just promised.
- Licensed trades: an ESA licence for electrical work, TSSA registration for gas, certified plumbers.
- A written contract with the scope, materials, price, payment schedule and dates.
- A deposit of 10% or less, as Ontario recommends, and no full payment before the work is done.
- A clear answer on permits: who applies, and you see the permit before work starts.
What Ontario licenses, and what it does not
There is no provincial licence for general renovation contractors. The Home Construction Regulatory Authority licenses new home builders and sellers, and says renovators are not licensed or regulated the way builders are. The Tarion warranty is for new homes, not renovations. Several trades are licensed, though, and they are easy to check:
- Electrical: only the homeowner or a Licensed Electrical Contractor may do electrical work in your home, and a notification (permit) has to be filed with the Electrical Safety Authority even for small jobs. The licence number is seven digits and should be on the contractor's truck and estimate. Check it with ESA's contractor locator or by calling 1-877-372-7233.
- Gas: gas work is for TSSA-registered contractors and certified fuel technicians. TSSA has an online lookup.
- Plumbing: plumber is a compulsory trade in Ontario. The person doing the work needs a Certificate of Qualification, a provisional certificate or a registered apprenticeship, and appears on Skilled Trades Ontario's public register.
- Design: whoever prepares permit drawings should be on Ontario's public registry of qualified designers (QuARTS), unless they are an architect or engineer or you are drawing your own house.
City business licences
Kitchener and Waterloo both license renovation contractors as businesses: Kitchener's contractor licence covers anyone altering, repairing or renovating buildings, and Waterloo's covers general home renovation and asks for proof of WSIB registration. Cambridge says it does not currently license renovation contractors. Ask for the licence if the work is in Kitchener or Waterloo.
Insurance and WSIB
- WSIB is mandatory in construction. WSIB says anyone who owns or runs a construction business, with or without employees, must have coverage. A renovator who only does home renovations hired and paid directly by the homeowner can be exempt, but must still cover any employees, and trades hired and paid by the contractor, rather than by the homeowner, do not qualify for the exemption.
- You do not need a clearance certificate yourself. WSIB says a homeowner, resident or family member who hires a contractor for home repairs or renovations does not need one. Asking for proof of the contractor's WSIB coverage is still the simplest way to see they are set up properly, and clearances can be checked on WSIB's site.
- Liability insurance protects your house if something goes wrong on site. Ask for a certificate naming the insurer and the coverage amount, and check it is current.
The contract: what Ontario law expects
Ontario's consumer protection law (the Consumer Protection Act, 2002, which remains in force while regulations for the 2023 replacement are developed) sets the rules for home renovation contracts:
- It must be in writing for any renovation worth more than $50.
- What it should include, per Ontario's guidance: the contractor's name, address and contact details; a detailed description of the work and materials; warranties; the total cost and payment terms; start and completion dates; the payment schedule including any deposit; who cleans up; and which sub-trades are used and who pays them.
- A 10-day cooling-off period applies to a contract signed in your home, starting the day you receive a written copy, with no cancellation fee. If the contract is missing required information, you can cancel within one year.
- Late starts: if work has not started within 30 days of the start date (or of signing, if there is no date), you can cancel any time before it starts, unless you accept the late start.
- Estimates: the final price cannot be more than 10% above a written estimate unless you agree to a change in writing.
- Products sold at the door: furnaces, air conditioners, water heaters, water softeners and duct cleaning cannot be sold to you at your door unless you started the conversation.
Deposits, payments and holdback
- Deposit: Ontario recommends no more than 10%, never paying in full before the work is done, and avoiding cash. If you do pay cash, get a signed receipt.
- Payments tied to progress: a payment schedule linked to milestones (framing done, inspections passed, cabinets installed) protects you better than dates on a calendar.
- Holdback: Ontario's Construction Act requires an owner paying for an improvement to hold back 10% of the value of the work, which protects you if a subcontractor or supplier goes unpaid and registers a lien. Ask your lawyer how the holdback and lien periods apply to your contract before the final payment.
- Arrange your own financing, as Ontario's guidance recommends.
Who gets the permit
Ontario's consumer guidance is direct: it is your responsibility, as the owner, to get the building permits your renovation needs. A contractor can apply for you, and most good ones will, but the contract should say so, and work should not start until you have seen the permit. Building without a required permit can bring fines of up to $50,000 for an individual's first offence.
Our permit guide covers exactly which work needs a permit in Kitchener, Waterloo and Cambridge.
Questions to ask at the site visit
- Who will be my day-to-day contact, and who is on site each day?
- Which work does your own crew do, and which trades do you bring in? Are they licensed?
- Who prepares the drawings, applies for the permit and books the inspections?
- Can I see proof of liability insurance and WSIB coverage?
- What is included in the price, and what is an allowance or excluded?
- How are changes priced and approved during the job?
- What does the payment schedule look like, and what is the deposit for?
- How do you protect the rest of the house, and can we live here during the work?
- When could you start, and how do you hold the schedule?
- What warranty do you give, and what does it cover?
- Can I speak to two or three recent clients with similar projects?
Red flags
- A contractor who comes to the door, offers a deal that expires today, or says they have leftover material from a job nearby. Ontario names the door-to-door approach and the disappearing contractor among common scams.
- Cash only, or a price for doing it without paperwork or without a permit (the province calls this the paper-free deal).
- A large deposit up front, or pressure to pay in full before the work is finished.
- No written contract, a vague scope, or a contract with no start and completion dates.
- No proof of insurance or WSIB coverage, or an electrician without an ESA licence number.
- Reluctance to give references or a business address.
Comparing quotes properly
Quotes are only comparable when they describe the same project. Line them up on scope, materials, allowances, exclusions, permits and schedule before you look at the price. The low number is often low because something is missing: the permit, the electrical, the disposal, a realistic allowance for tile or fixtures. Ask each contractor to fill the gaps in writing.
How we answer these questions
RTC Renovations is fully insured, bondable and covered by WSIB, and we are happy to show proof. Electrical work is done by licensed electrical contractors we have worked with for years, and they file with ESA for their scope. We prepare the drawings, apply for the permit and book every inspection, and you see the issued permit before demolition starts.
The first four steps of our process, including the site visit and a written preliminary proposal with projected costs, are free. A deposit at step five covers measurement, drawings and permit applications and is credited against the project, and construction payments follow milestones rather than the calendar. Read more about how design-build works, or see our guide to living through a renovation.
