How to check a contractor in Ontario before you hire

Before you sign with anyone, confirm six things: who the business is, any licence your city requires, liability insurance, how the workers are covered, who will do the electrical, plumbing and gas work, and what the written contract says. Most of it can be checked online or by phone, and a good contractor expects you to ask.

The checks at a glance

The Consumer Beware List shows charges, convictions and some unresolved complaints. A clean search proves little, but a listing deserves a direct question.

Municipal renovator licences

Three GTA cities license building renovators:

• Toronto requires a Building Renovator licence under Municipal Code Chapter 545 for businesses that alter, repair or renovate buildings. The Business Licence Lookup searches by operating name, licensee name or licence number.
• Mississauga requires applicants to pass an Ontario Building Code exam and show a certificate of insurance for at least $2 million in liability coverage.
• Brampton requires $2 million in commercial general liability insurance and proof of WSIB coverage, among other things.

In Mississauga and Brampton, confirm the licence number with the city's licensing office. In Oakville and elsewhere, check your municipality's business licensing page. Electrical, plumbing and gas work have their own provincial rules, covered below.

Liability insurance

Ask for a certificate of commercial general liability (CGL) insurance, the coverage that responds when a contractor's work injures someone or damages property, yours or a neighbour's. On the certificate, check:

• the named insured matches the business on your contract
• the policy dates cover your whole project
• the limit: $2 million is the minimum Mississauga and Brampton require of licensed renovators, a sensible reference point anywhere in the GTA

Then call the broker or insurer named on it and confirm the policy is active and covers the type of work you're hiring for. Liability insurance is there for accidents. It isn't a promise of good workmanship; that's what your contract and warranty are for.

Ontario Bonded Builders carries $5 million in commercial liability insurance. Ask us for the certificate the same way you'd ask anyone else.

WSIB clearance certificates

A WSIB clearance certificate protects whoever hires a contractor from being held liable for that contractor's unpaid WSIB premiums. Under WSIB policy, homeowners who hire a contractor directly for renovation work on the home they live in are exempt, so for your own house a clearance isn't a legal requirement.

It's still worth asking how the crew is covered. Some owners of businesses doing only home renovation work directly for homeowners can be exempt from compulsory coverage themselves, but their workers must be covered. Clearances last up to 90 days and can be checked online. For a rental or investment property, check with WSIB before work starts.

Licensed trades: electrical, plumbing and gas

• Electrical. ESA says anyone you pay to do electrical work must be a Licensed Electrical Contractor with an ECRA/ESA licence number, and they should file the notification of work with ESA. A general contractor can run the project, but the electrical part must be done by, or under, a Licensed Electrical Contractor. You may do electrical work in your own home if you file the notification yourself; a friend or relative can't do it for you.
• Plumbing. Plumber and electrician are compulsory trades in Ontario, so the person doing the work needs a Certificate of Qualification or must be a registered apprentice.
• Gas. Fuel-fired appliances, such as a furnace or gas fireplace, must be worked on by a TSSA-registered fuels contractor using certified gas technicians.

Written contracts and your rights

Ontario requires home renovation contracts over $50 to be in writing. Consumer Protection Ontario says the contract should include the contractor's contact information, a detailed description of the work and materials, any warranties, the total cost, deposit and payment terms, start and completion dates, who handles cleanup, and which subtrades will be used and who pays them.

Two more protections are worth knowing:

• Estimates. If an estimate is part of the contract, the final price can't be more than 10% above it unless you agree to new work or a new price.
• Cooling-off period. If you sign a renovation contract in your home, you generally have 10 days to cancel.

Ontario has also passed a new Consumer Protection Act, 2023, which takes effect on a date set by the government. Check Consumer Protection Ontario for the current rules before you sign.

Deposits and payments

Consumer Protection Ontario recommends keeping the down payment to a minimum (it suggests 10%) and never paying the full price before the work is done. After that, tie payments to work you can see, such as framing finished or cabinets installed, with a meaningful final payment once inspections pass and the deficiencies are fixed. If custom items must be paid for when ordered, ask for the supplier's order confirmation. Get a receipt for every payment, cash included.

Permits: whose name is on them

Consumer Protection Ontario's guidance puts the responsibility for building permits on the homeowner. A contractor or designer often applies on your behalf, and that's normal. What matters is that the contract says who applies, who pays the fees and who books the inspections. The electrical contractor files the ESA notification.

Be wary of a contractor who says a required permit "isn't worth the trouble", or who wants it in your name without a clear reason. Our guides to basement permits and deck permits explain when GTA cities require one.

Change orders

Plans change, and walls hide surprises. Agree that every change is written down, priced and signed by both of you before the changed work starts. Because of the 10% estimate rule, a signed change order is how you agree to new work or a new price, so it protects both sides. Also agree in writing how hidden problems such as rot or old wiring will be priced and approved.

Get more than one quote

Consumer Protection Ontario suggests getting written estimates from at least three contractors. Quotes only compare well when they're for the same job:

1. Give every contractor the same written description, with photos and measurements.
2. Ask for an itemized quote that lists allowances and exclusions.
3. Ask everyone the same questions about permits, schedule, deposit and warranty.

A firm price should come after someone has seen the job. The lowest total isn't always the best value, so check what each quote leaves out.

Warning signs

• Pressure to sign or pay on the spot
• A discount for skipping the contract, the invoice or the permit
• A large payment long before a confirmed start date
• Reluctance to show insurance or licence documents
• A one-line quote for a large job

Getting quotes for your project

If you're collecting quotes for a kitchen, bathroom or basement in Mississauga, Toronto or Oakville, we're glad to be one of them. Our on-site estimates are free: book one here, or see our planning prices on the pricing page. Run the same checks on us.