Questions to ask before hiring a renovation contractor

Most renovation disputes are not caused by bad workmanship. They are caused by two people having different assumptions about what was included. Asking the same questions of every contractor removes most of that risk before work starts.

Price structure

• Is this fixed price, cost-plus, or allowance-based?
• Which items are allowances, and what happens if actual cost is higher?
• Are materials, taxes, delivery, and disposal included?
• Are permits, permit fees, drawings, and engineering included?

Risk and process

• What happens if hidden damage is found?
• How are change orders priced and approved?
• Who books inspections and deals with the municipality?
• What payment schedule applies, and what is the deposit?

Credentials

Ask for proof of liability insurance and workers' compensation, and make sure licensed trades are doing the licensed work. Electrical and gas are regulated in every province. In Ontario, that means an ESA contractor for electrical and a TSSA technician for gas.

Red flags

• A large cash deposit with no written scope
• Verbal-only pricing or a one-line quote
• Pressure to skip permits
• No proof of insurance