How to Choose a Renovation Contractor in Canada: 8 Things to Check

Hiring a renovation contractor is one of the most consequential decisions a homeowner can make. A good contractor delivers a beautiful, code-compliant project on time and on budget. A bad one can disappear mid-project with your deposit, leave dangerous code violations behind, or trigger a multi-year legal dispute. The difference between the two is almost always discoverable in advance — if you know what to look for.

Here are the eight things you must verify before signing any renovation contract in Canada.

1. Verify Their Business Registration

Every legitimate renovation company should be a registered business in their province. Ask for their HST/GST number — a contractor without one is either extremely small (under the $30,000 threshold) or working under the table. Either way, it’s a red flag for a project of any significant size.

You can verify company registration through your provincial business registry (most are free to search online). In Ontario, search the Ontario Business Registry. In Quebec, the Registre des entreprises. Matching the company name to an active registration takes two minutes and eliminates a significant fraud risk.

2. Confirm Insurance — In Writing

Your contractor must carry two types of insurance:

• Commercial General Liability (CGL): Protects you if the contractor damages your property or a third party is injured. Minimum $2 million per occurrence is standard; $5 million is better for larger projects.
• WSIB / Workers’ Compensation: Covers workers injured on your property. Without it, you as the homeowner may be liable for injuries sustained during the project.

Don’t just ask — request a Certificate of Insurance naming you as an additional insured, and verify the policy is current by calling the insurer directly. Fraudulent certificates do exist.

3. Check Their Licensing for Regulated Trades

In Canada, certain trades are regulated and require provincial licensing:

• Electricians: Licensed electricians only, full stop. Unlicensed electrical work is illegal and will not pass inspection.
• Plumbers: Also regulated in all provinces. Ask for the master plumber’s license number.
• Gas fitters: Working on gas lines requires a gas fitter’s certificate.
• Roofers: Not regulated in all provinces, but look for manufacturer certifications (e.g., GAF Master Elite or CertainTeed SELECT ShingleMaster).

For general contractors, Ontario’s Home Construction Regulatory Authority (HCRA) licenses new home builders. Home renovation contractors in Ontario are not yet licensed provincially, which is exactly why due diligence matters more.

“The absence of a license for a general contractor doesn’t mean anything on its own — but the absence of licensed subtrades doing regulated work is a serious problem.”

4. Pull References — And Actually Call Them

Any contractor worth hiring will provide a list of references without hesitation. Ask for 3–5 references from projects completed in the last 18 months, ideally similar in scope to yours. Then call them.

Questions that reveal the most:

• Did the project finish on time? If not, by how much?
• Did the final cost match the original quote?
• How did the contractor handle unexpected problems or change requests?
• Was the job site kept clean and the team respectful of your home?
• Would you hire them again for a project of this size?

That last question is the most revealing. Satisfied clients almost always say yes immediately. A hesitation or qualified “probably” tells you something.

5. Understand What the Contract Actually Says

A legitimate renovation contract should include, at minimum:

• Detailed scope of work (what is included — and what is not)
• Material specifications (brands, grades, finishes — not just generic descriptions)
• Timeline with milestone dates
• Payment schedule tied to project milestones, not arbitrary dates
• Warranty terms for both labour and materials
• Change order process (how scope changes are priced and approved)
• Dispute resolution clause

Be very cautious of contracts that are vague on materials (“tile as selected,” “standard fixtures”) without specific callouts. This language gives the contractor enormous latitude to use inferior products.

6. Scrutinize the Payment Schedule

The payment schedule is one of the clearest indicators of a contractor’s business health and intentions. A reasonable payment structure for a mid-size renovation might look like:

Never pay more than 15–20% upfront. A contractor demanding 30–50% before starting work either has serious cash flow problems or is a fraud risk. Material deposits for custom or long-lead items are acceptable — ask for receipts and have materials delivered to your address, not the contractor’s.

7. Verify Their Physical Presence

Many renovation fraud cases involve contractors with no fixed address, no office, and who are unreachable once problems arise. Before signing, verify:

• They have a physical business address (a PO box is insufficient)
• They have a company website and email (not just a personal cell number)
• They appear in local business directories, Google Business, or have a documented local history
• Their vehicles are marked with company branding

This isn’t about flashiness — small, owner-operated companies do excellent work. It’s about being able to find them if something goes wrong.

8. Understand the Permit Process

Any contractor who discourages you from pulling permits should be disqualified immediately. Permits exist to protect you, not the contractor. An unpermitted renovation can:

• Void your home insurance in the event of a related claim
• Create complications when selling your home
• Leave you with dangerous, non-code-compliant work with no recourse
• Trigger an order to open walls and bring work up to code at your expense

Ask specifically: “Will you pull all required permits for this project?” A confident yes is the only acceptable answer. Ask to see the permit applications once submitted.

The Bottom Line

Most renovation horror stories could have been avoided by spending a few hours verifying the basics: insurance, licensing, references, and a clear contract. The contractors who resist this scrutiny are the ones you should avoid. The ones who welcome it — and answer every question readily — are the ones worth trusting with your home.

Our team is happy to walk any prospective client through our credentials, references, and process before you make any commitment. Get in touch or request a free estimate — we’ll bring our full documentation to the first meeting.

Also see: Complete Guide to Basement Renovation in Canada for more on what the permit and construction process looks like in practice.