What payment schedule should I expect from an Ottawa contractor?

A fair payment schedule from an Ottawa contractor typically follows a milestone-based structure, with no more than 10-15% due upfront as a deposit. This protects both you and the contractor by tying payments to completed work rather than promises.

Here's what a reasonable payment structure looks like for a mid-size renovation project in Ottawa:

The deposit should be modest — typically 10-15% of the total project cost. This covers the contractor's initial material orders and scheduling costs. Be cautious of any contractor demanding 30-50% upfront before a single tool is unpacked. That's a significant red flag in the Ottawa market and, frankly, anywhere in Ontario.

Progress payments are tied to measurable milestones — demolition complete, rough-ins inspected, drywall done, etc. For a $30,000–$50,000 renovation, you might see 3–4 progress payments of roughly 20–25% each. These should only be triggered when you can physically see the completed stage, not on a calendar schedule. A good contractor will walk you through the site before requesting each payment so you can verify the work yourself.

The holdback is the most important protection you have as a homeowner. Under Ontario's Construction Act, you are legally entitled — and actually required — to hold back 10% of every progress payment until 45 days after the project reaches substantial completion. This holdback protects you if a subcontractor or supplier places a lien on your property due to the general contractor not paying them. Don't waive this right, even if a contractor pressures you to.

The final payment (typically 10–15% of the total) should only be released after all deficiencies are corrected, the final inspection is passed, and you've received all warranties, permits, and closeout documents. Never release final payment before the building permit is formally closed — this is your last point of leverage.

From an Ottawa-specific perspective, always ensure your contract clearly states the payment schedule in writing, along with what milestone triggers each payment. The Ontario New Home Warranties Plan Act doesn't cover renovations, so your contract is your primary protection. If a contractor offers only a verbal payment arrangement, walk away.

One practical tip: pay by cheque or e-transfer (not cash) and keep records of every payment. If a dispute arises, documentation is everything.

If you're planning a renovation and want to understand exactly how we structure our contracts and payment schedules, Justyn Rook Contracting offers free consultations — we're happy to walk you through our process before you commit to anything.