How to Vet a Contractor Before You Hire

Licensing in Canada is handled provincially, and it varies by trade. Electrical and gas work is licensed almost everywhere. Plumbing is licensed in most provinces. General renovation contractors often aren't licensed as tradespeople at all, though in Ontario anyone building a new home has to be registered with the provincial home construction regulator.

So the first question isn't "are you licensed?" It's "what licence do you hold, and what's the number?" A real answer comes with a number you can look up. An electrician should be able to hand you a certificate of qualification and, for the company, an electrical contractor licence. A gas fitter should have a provincial ticket.

Then check it. Most provincial regulators have a free public lookup that takes under a minute. People rarely bother, which is precisely why an unlicensed operator will happily claim a licence they don't have.

There are two coverages that matter and they do different jobs. Liability insurance covers damage the contractor causes to your property, a burst line, a fire, a cracked slab. Workers' compensation coverage protects you if someone gets hurt on your property.

Ask for a certificate of insurance sent directly from the broker, not a photocopy from the truck. Check the expiry date and the coverage amount, two million is a common floor for residential work. For workers' comp, ask for a clearance certificate from the provincial board, WSIB in Ontario, WorkSafeBC out west. These are free for the contractor to pull and take a day at most.

If a contractor tells you they're covered by your home insurance, that's not how it works. Your policy is unlikely to cover an injured worker or defective work performed for pay on your property.

The single biggest source of renovation disputes is a scope everyone thought they agreed on. A one-line quote that says "bathroom renovation, $18,000" is not a scope. It's a number attached to an assumption.

A workable scope names materials, quantities and who supplies them. It says whether demolition and disposal are included. It says what happens to the subfloor if it's rotten underneath, because in an older home it might be. It lists the permit, if one is needed, and who pulls it.

You don't need contractor-level detail. You need enough that two different companies reading the same document would price roughly the same work. If a contractor won't put the scope in writing, the quote isn't comparable to anything.

That last one matters more than people expect. Any renovation on a house older than about thirty years has a decent chance of turning up knob-and-tube wiring, a hidden leak, undersized joists, or asbestos in old floor tile and pipe wrap. The honest answer is "we stop, show you, price the fix and you decide." The answer to worry about is "that won't happen."

Ask for two references from work completed at least a year ago, plus one recent. Recent references are people who are still excited. Older references know whether the grout cracked, whether the contractor came back, and whether the invoice matched the quote.

When you call, skip "were you happy?" Ask what went wrong and how it was handled, because something always goes wrong. A contractor who fixed a mistake without an argument is worth more than one who claims never to have made one.

Online reviews are useful in aggregate but noisy individually. Look for reviews that describe the job in detail, timelines, communication, cleanup, how surprises were priced. Twenty five-star ratings with no text is not evidence. A handful of thoughtful three- and four-star reviews often tells you more than a wall of perfect scores.

A deposit is normal. Ten to twenty percent is typical for a mid-sized job, and it may run higher when the contractor has to order custom cabinetry or windows up front. Paying half before anyone shows up is not normal, and paying in full before completion removes every reason for anyone to come back.

Tie payments to milestones you can see: rough-in complete and inspected, drywall up, fixtures set, final walkthrough. Keep a meaningful final payment, five to ten percent, until the deficiency list is cleared.

Most provinces also have construction lien legislation that requires a holdback on larger contracts, and gives unpaid subcontractors the right to register a lien against your title even if you paid the general contractor in full. On a large project, ask for signed lien waivers or proof that subs and suppliers have been paid before you release the final cheque.

One more thing: if you're offered a discount for cash with no invoice, understand what you're giving up. No paper trail means no warranty claim, no insurance claim, and no leg to stand on if the work fails inspection when you sell.

Structural changes, new circuits, moving plumbing, decks above a certain height, finished basements and most window enlargements need a permit. The permit exists so an inspector confirms the work meets code, which is also what protects you at resale and at claim time.

A contractor who suggests skipping the permit to save time is shifting risk onto you. Unpermitted work can force you to open finished walls later, complicate a sale, and give an insurer a reason to deny a fire or water claim traced back to it.

The contract doesn't have to be long, but it should name the parties, the address, the scope, the total price and how it's calculated, the payment schedule, the start and expected finish dates, the warranty period, and what happens if either side walks away.

Attach the quote and any drawings as part of the agreement so there's no ambiguity about which version everyone signed. Note that several provinces give you a cooling-off period, commonly ten days, on contracts signed in your home, which is worth knowing before you sign at the kitchen table.

Write your scope first, even roughly. Get three quotes against it. Verify licence and insurance for the two you like. Call references. Compare the written quotes line by line rather than by total. Then sign a contract with a milestone payment schedule.

It sounds like a lot, but the whole process takes a couple of evenings and it's the difference between a renovation you talk about happily and one you talk about with a lawyer.