A renovation contract should tell you what will be built, what is excluded, who is responsible for permits and sub-trades, when payments are due, and how the price or schedule can change. If those answers live only in emails, sales conversations or assumptions, ask for them to be added before you sign.
Ontario’s homeowner renovation guidance says a home renovation contract worth more than $50 must be in writing. It also recommends having a lawyer review the contract for major renovation work. That is sensible for a full-home renovation, where one vague line can affect several rooms, building systems and months of work.
This guide explains what to check. It is general information, not legal advice about a particular contract.
Start with the exact legal names
The contract should identify the homeowner and the business that is taking responsibility for the work. Check the contractor’s legal business name, operating name, address and contact information. The name on the contract should make sense beside the name on the licence, insurance document, invoices and payment instructions.
A polished brand name is not enough. If the contract is with one corporation, the deposit should not quietly go to an unrelated person or business without a clear explanation.
Before signing, use the separate guide on how to check a renovation contractor in Toronto. That check should cover the municipal renovator licence where applicable, trade-specific credentials, insurance evidence and the Ontario Consumer Beware List.
Make the scope specific enough to price and inspect
“Renovate main floor” is not a usable scope for a large project. A homeowner should be able to compare the contract with the drawings, finish schedule and proposal and see the same job.
The written scope should identify, where applicable:
- rooms and areas included;
- demolition and disposal;
- structural work and supporting drawings;
- plumbing, electrical and HVAC work;
- insulation, drywall, flooring, millwork and finishes;
- fixtures, appliances and materials, including model or performance information when selected;
- protection of occupied or retained areas;
- permits, notifications and inspections;
- site cleanup and final documentation;
- work that is expressly excluded.
If a selection has not been made, the contract should say how it will be handled. An allowance needs an amount, a description of what it covers, and an explanation of what happens when the final selection costs more or less. “Standard finish” tells you very little unless the standard is defined.
For a whole-home project, connect the contract to the approved drawings and schedules by date or version. Otherwise, a later drawing revision can create an argument over which scope was priced.
Put permit and inspection responsibility in the contract
Ontario’s renovation guidance says the homeowner is responsible for obtaining required building permits and meeting legal requirements, although a contractor may agree to handle permits on the homeowner’s behalf. The contract should state who will prepare the application, who will pay the fees, who will respond to comments, and who will book inspections.
Do not treat “permits included” as a complete answer. Ask which approvals are included. A municipal building permit, an Electrical Safety Authority notification and a heritage approval are separate processes. The contract should also say whether design revisions requested by an authority are included or priced as a change.
The next useful read is the full-home renovation planning guide. Use the permit and electrical guides when the scope changes structure, plumbing, HVAC, wiring, or another approval-sensitive part of the house.
Make the price structure understandable
The contract should state the total price and payment terms, including applicable taxes. It should also make clear which parts are fixed, estimated, allowed for, optional or excluded.
These labels are not interchangeable:
- A fixed contract price still depends on the written scope, assumptions and change terms.
- An estimate may engage Ontario’s estimate rules when it forms part of the consumer agreement.
- An allowance is a placeholder for a defined item or category, not permission to bill an undefined amount.
- A time-and-material arrangement should identify labour rates, material treatment, records and authorization limits.
If the contract includes an estimate, Ontario’s current Consumer Protection Act, 2002 says a supplier generally cannot charge more than 10% above it. The Act also permits the parties to amend the estimate or price when the consumer requires additional or different goods or services. Read the focused explanation of Ontario’s renovation estimate 10% rule before assuming that every cost increase is treated the same way.
Tie payments to work you can verify
The payment schedule should show the deposit, each progress payment, applicable tax and the evidence that makes a payment due. A calendar date alone may not tell you whether the corresponding work has been completed.
Useful milestone descriptions might refer to a defined delivery, completed phase, inspection stage or accepted document. The right milestones depend on the project, procurement and contract. There is no universal percentage schedule that fits every renovation.
Ontario recommends keeping a renovation deposit to no more than 10% of the total project cost. That is government guidance, not a universal statutory maximum. It is also separate from the statutory Construction Act holdback. The guide to renovation deposits and payment schedules explains the difference.
Decide how changes will be approved before changes happen
Renovations change for legitimate reasons: an owner selects different work, a drawing is revised, or demolition reveals a condition that could not be confirmed earlier. The contract should turn each change into a documented decision rather than a running verbal tab.
A change-order clause should explain:
- who may request and approve a change;
- what written information must be provided;
- how labour, materials, credits and tax are priced;
- whether overhead or markup applies and how it is calculated;
- how the schedule effect is assessed;
- when changed work may begin;
- how an urgent safety or stabilization issue is handled.
Use the detailed Ontario renovation change-order guide to check the form itself. “We will figure it out later” is not a change-control system.
Check schedule assumptions, not only two dates
Ontario’s contractor guide lists a work schedule, including start and completion dates, among the information a renovation contract generally needs. A useful schedule section also identifies the conditions behind those dates.
For a full-home renovation, ask how the contract handles:
- permit or design-review timing;
- owner selection deadlines;
- long-lead materials;
- access to the home and working hours;
- inspection availability;
- hidden conditions and approved changes;
- delays outside either party’s control;
- notice and documentation when the schedule moves.
A date without assumptions may look certain while leaving the real dependencies unstated.
Read the warranty and correction terms
The contract should describe any warranty on supplied goods and installation labour. Check what is covered, what is excluded, when the period starts, how you report an issue and who responds when a manufacturer’s warranty is involved.
Do not rely on the word “warranty” by itself. A useful clause explains the process. It should also distinguish final deficiencies, warranty service and new damage or maintenance issues.
Know which cancellation rules may apply
Ontario says that when a home renovation or repair contract worth $50 or more is signed in the consumer’s home, the consumer has a 10-calendar-day cooling-off period. The exact cancellation rights depend on how and where the agreement was made and on the facts.
The contract should include the required information for its agreement type, and you should receive and retain a copy. If you are considering cancellation, work has already started, or the contract does not contain required information, obtain current advice from Consumer Protection Ontario or a lawyer instead of relying on a general article.
As of August 22, 2026, Ontario e-Laws says the Consumer Protection Act, 2023 is not yet in force and will come into force on a day named by proclamation. The Consumer Protection Act, 2002 remains the current statute for the rights discussed here. This status must be checked again immediately before publication and before anyone relies on the article later.
A practical pre-signing check
Before you sign, confirm that you can point to a written answer for each of these questions:
- Which legal business is responsible for the project?
- What exact rooms, systems, products and services are included?
- What is excluded or still unknown?
- Which drawings and schedules form part of the agreement?
- Who owns permits, ESA notifications, inspections and authority comments?
- Which price components are fixed, estimated, allowed for or optional?
- What evidence makes each payment due?
- How is the statutory holdback handled?
- Who can approve a change, and what must be written first?
- Which assumptions can move the schedule?
- How are deficiencies, warranty requests and disputes handled?
- Which cancellation rights and notice rules apply to this agreement?
If the project spans several rooms or major building systems, a contract review should happen after the scope is developed but before a large deposit or construction commitment. A homeowner who is still defining the project can start with the full-home renovation planning guide. A homeowner ready to discuss an integrated scope can review Capable’s Toronto full-home renovation service.
This article provides general homeowner information. Property-specific legal, permit, structural, electrical, environmental, health and contract questions require the appropriate authority or qualified professional.
