What should be included in a renovation contract?

A comprehensive renovation contract should include detailed project scope, timeline, payment schedule, and legal protections for both homeowner and contractor. This document serves as your roadmap and safety net throughout the entire renovation process.

Project Scope and Specifications form the foundation of any solid contract. This section should detail exactly what work will be performed, including specific materials, brands, models, colors, and finishes. For example, rather than "install new flooring," the contract should specify "install 600 sq ft of engineered hardwood flooring, Bruce Hickory Natural 5-inch planks, including underlayment and quarter-round trim." Include what's excluded from the work - this prevents costly misunderstandings later. Any changes to the original scope should require written change orders with updated pricing and timelines.

Financial terms and payment structure protect both parties from cash flow issues. In Ontario, contractors cannot legally request more than 10% down payment or $1,000, whichever is less, before work begins. Avoid contractors demanding large upfront payments - this is often a red flag. The contract should outline a payment schedule tied to project milestones, such as 10% to start, 25% after demolition, 40% at rough-in completion, 20% at substantial completion, and 5% final payment after all deficiencies are addressed. Include the total project cost, what's included in that price, and how additional work will be priced.

Timeline and completion dates should be realistic for Ottawa's market conditions. Include start date, substantial completion date, and final completion date. Build in allowances for permit delays (typically 2-4 weeks in Ottawa), material delivery delays, and weather constraints if exterior work is involved. The contract should specify what constitutes completion and outline penalties or remedies if deadlines aren't met. Remember that Ottawa's construction season runs roughly April through November for most exterior work.

Legal protections and insurance requirements are crucial in Ontario. Verify the contractor carries WSIB coverage and general liability insurance - request certificates. The contract should specify who obtains permits (typically the contractor) and ensure all work meets Ontario Building Code requirements. Include lien holdback provisions as required by Ontario's Construction Act - this protects you from subcontractor payment disputes. The contract should also outline warranty terms for both labor and materials, dispute resolution procedures, and what happens if the project is terminated early.

Permit and inspection responsibilities must be clearly defined. In Ottawa, most renovation work requires building permits, and the contract should specify who applies for permits, pays permit fees, and coordinates inspections. The contractor should provide permit numbers once obtained and ensure all required inspections are completed before covering work. This protects you from costly corrections later and ensures your insurance remains valid.

For complex projects like secondary suite additions or structural modifications, ensure the contract references specific Ontario Building Code requirements and includes provisions for any required engineering reports or architectural drawings. The contract should also address site protection, cleanup responsibilities, and how utilities will be maintained during construction.

For a comprehensive contract review and free estimate on your renovation project, contact Justyn Rook Contracting. We provide detailed contracts that protect your investment and ensure clear communication throughout your renovation journey.