What to put in writing before you sign a renovation contract in Ontario

Most renovation disputes in the GTA don’t start with bad work, they start with an unclear agreement. A verbal understanding about scope, timeline, or price leaves both sides room to remember things differently once the project is underway. This is general information, not legal advice, and a lawyer should review any contract for a large project.

The core terms every renovation contract should have

Term	Why it matters
Detailed scope of work	Defines exactly what’s included and what isn’t
Total price, itemized	Separates labour, materials, and allowances
Payment schedule tied to milestones	Protects both sides if work stops partway
Start and estimated completion date	Sets expectations and a basis for delay discussions
Change order process	Defines how scope changes and their cost get approved
Permit responsibility	States clearly who applies for and pays for permits
Warranty terms	Covers what’s guaranteed and for how long

Why the payment schedule matters most

A large upfront deposit, before any work has started, shifts risk heavily toward the homeowner. A more balanced structure ties payments to completed stages: a portion at signing, a portion once demolition and rough-in are done, a portion at substantial completion, and a final holdback until the last deficiencies are fixed. This structure gives you a stronger hand in getting punch-list items addressed, since the contractor still has money owing.

Getting the deposit right

A reasonable deposit acknowledges that a contractor needs to order materials and schedule a crew, but it shouldn’t hand over most of the project’s value before meaningful work has happened. If a contractor pushes back hard on a milestone-based structure and insists on a large upfront amount instead, treat that as a data point worth weighing alongside everything else in their proposal, not necessarily a dealbreaker on its own, but a reasonable thing to ask more questions about.

Scope of work: be specific

“Renovate the kitchen” is not a scope of work. A proper scope names the cabinets, counters, flooring, and appliances by brand or allowance amount, states whether plumbing or electrical is moving, and lists what happens to existing materials being removed. Vague scopes are where change-order disputes come from, because either side can argue an item was or wasn’t included.

Change orders

Renovations change once walls open up and unexpected issues surface, that’s normal. What protects you is a written process for approving and pricing changes before the work happens, not after. A contract should state that any change to scope, cost, or timeline needs written sign-off from both parties before it proceeds.

Warranty terms

A contract should state, in specific terms, how long workmanship is warrantied and what it covers, separate from manufacturer warranties on materials or fixtures. A vague line like “standard warranty applies” isn’t a warranty term, it’s a placeholder. Ask for the actual duration, typically one to two years for workmanship on a renovation, and what the claims process looks like if something needs to be fixed after the crew has left.

Termination and dispute terms

It’s worth including what happens if either side wants to end the agreement partway through, how unfinished work gets valued, and how disputes get resolved, whether that’s mediation, arbitration, or small claims court for smaller amounts. Nobody expects to need this section, which is exactly why it’s worth having before it’s needed rather than negotiating it in the middle of a disagreement.

Permits and who’s responsible

Confirm in writing whether the contractor or the homeowner is applying for any required permits, and who bears the cost if a permit reveals additional required work. This ties closely into broader permit requirements for GTA renovations, and it’s worth resolving before signing rather than discovering the gap mid-project.

Before you sign

Get at least two contractors’ proposals in writing before choosing one, even if you already have a preferred contractor. Comparing written scopes side by side often reveals gaps or assumptions you wouldn’t have caught otherwise. Contractors listed in this directory are scored in part on communication and follow-through, which our methodology explains in more detail.

A clear contract doesn’t prevent every disagreement, but it gives both sides a shared reference point to resolve one quickly instead of it turning into a drawn-out dispute.