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Before you hire

How to verify a renovation contractor

In most of Canada there is no such thing as a licensed general contractor. What separates a legitimate renovator from a risky one is a short stack of documents you can check yourself, mostly for free, mostly in an afternoon.

Get the quote checklistEstimate your project first
The short version.Ask for four things: business registration, a workers’ compensation clearance number, a certificate of insurance for at least $2 million, and photo ID that matches the business. Verify the clearance number and the insurance yourself rather than accepting copies. If a contractor will not provide these, that is your answer.

Rules in Ontario

Contractor licensing is provincial, and the differences are large.

Is a general contractor licence required?

No

Ontario does not license general contractors or renovators. Anyone can advertise renovation work, so the paperwork you check matters more than any claimed credential.

Verify injury coverage with WSIB

Workplace Safety and Insurance Board issues the clearance certificate that shows a contractor is registered and up to date. Verify the number on their site rather than accepting a copy from the contractor.

WSIB clearance lookup

Trades that must be licensed in Ontario

Permits in Ontario

Building permits are issued by your municipality under the Ontario Building Code. Requirements and fees differ from one city to the next.

Official permit information
Because Ontariohas no general contractor licence, there is no official register you can search to confirm a renovator is legitimate. The documents above are the only reliable check available to you. Anyone claiming to be a “licensed general contractor” in Ontario is describing something that does not exist.

The four documents to ask for

Plus the contract, which is the one most homeowners skip and most regret skipping.

  1. Business registration and HST number

    Proof the company legally exists and is registered to collect sales tax.

    Verify on a public register
    Why it protects you
    You are dealing with a real registered business, not a person operating under a name they invented last week.
    How to check it
    Ask for the legal business name and business number, then search your provincial business registry. An HST or GST number can be confirmed through the CRA's GST/HST Registry search.
    How often
    Once, before you sign.

  2. Workers' compensation clearance certificate

    Coverage that pays if a worker is injured on your property, so the cost never lands on you.

    Verify on a public register
    Why it protects you
    If someone is hurt working on your home, their medical and wage costs are covered by the board rather than becoming your liability.
    How to check it
    Ask for the clearance number and verify it directly on your provincial board's website. Do not accept a screenshot or a PDF the contractor produced themselves.
    How often
    Every 90 days, and before work starts. Clearance certificates expire, and coverage must stay in effect for the entire time the contractor is on site.

  3. Certificate of insurance, minimum $2 million commercial general liability

    Insurance that pays if the contractor damages your home or injures someone.

    Verify with the issuer
    Why it protects you
    A burst pipe, a fire, or a neighbour's damaged property gets paid for by an insurer instead of turning into a lawsuit you have to win first.
    How to check it
    Ask for the insurer's name and policy number, then phone the insurance broker directly and confirm the policy is active and the coverage amount is correct. Request that your name be added as an additional insured for large projects.
    How often
    On the policy renewal date, normally annually.

  4. Photo ID matching the business registration

    Confirmation that the person in front of you runs the company they claim to.

    Review it yourself
    Why it protects you
    Prevents a common fraud where someone borrows or copies a legitimate company's credentials.
    How to check it
    Compare the name on government-issued photo ID against the name of the director or owner listed on the business registration.
    How often
    Once, before you sign.

  5. Written contract with a fixed scope

    A document that says exactly what you are buying, for how much, by when.

    Review it yourself
    Why it protects you
    Almost every renovation dispute comes down to scope. A written contract with a payment schedule tied to completed milestones is your single strongest protection.
    How to check it
    Confirm it names the parties, the full scope, the total price, the payment schedule, the start and completion dates, who pulls permits, and how changes are priced and approved.
    How often
    Re-read before every change order.

When to do each check

Spreading this across the hiring process is far less work than doing it all at once.

  1. Before you invite anyone to quote

    Write down your scope and your budget range. Get at least three quotes. Contractors who know they are being compared price more honestly.

  2. At the first site visit

    Ask for the legal business name, the workers' compensation clearance number, and the insurance broker's contact details. A prepared contractor will have all three.

  3. Before you sign anything

    Verify the clearance number on the board's website yourself. Phone the insurance broker, not the contractor, to confirm the policy is active. Search the business registry.

  4. Before work starts

    Re-check the clearance certificate is still in effect, confirm who is pulling the permit, and get the written contract signed with a milestone payment schedule.

  5. During the project

    Price and approve every change in writing before it happens. Never pay ahead of completed work. Keep the final payment until deficiencies are fixed and inspections pass.

Red flags

The first five are reasons to end the conversation. The rest are reasons to slow down and get more quotes.

  • Refuses to provide a workers' compensation clearance number or an insurance certificate

    Walk away

    These are routine documents that every legitimate contractor has on hand. Refusal is the single most reliable warning sign there is.

  • The clearance or insurance certificate does not match the business name on the quote

    Walk away

    Often means credentials borrowed from another company, or a business that has been restructured to escape past liabilities.

  • Advertises electrical, gas, or plumbing work without the matching trade licence

    Walk away

    Uncertified work in these trades is illegal, will fail inspection, and can void your home insurance after a fire or flood.

  • Pushes for cash payment or a large deposit with no written contract

    Walk away

    No paper trail means no recourse. A deposit above roughly 10 to 15 percent, before materials are ordered, is not normal.

  • Suggests skipping the permit to save money or time

    Walk away

    Unpermitted work can force removal, block a future sale, and give your insurer a reason to deny a claim. The contractor takes the saving; you keep the risk.

  • Today-only pricing, or pressure to sign before you have compared quotes

    Slow down

    Legitimate contractors have backlogs and do not need to close you on the spot.

  • Quotes verbally, or gives a single lump-sum number with no breakdown

    Slow down

    Without a line-item breakdown you cannot compare quotes, and you cannot tell what was excluded until the invoice arrives.

  • Cannot supply recent local references or addresses of completed work

    Slow down

    Any established renovator has finished jobs nearby. Ask to speak to two homeowners from the past year.

What verifying paperwork does and does not tell you

Paperwork can confirm

  • The business is registered and legally exists
  • Workers on your property are covered for injury
  • Damage to your home or a neighbour's is insured
  • Any electrical, gas, or plumbing work will be done by a licensed trade

Paperwork cannot confirm

  • The quality of the workmanship
  • Whether the project will finish on time or on budget
  • Whether the contractor is pleasant to deal with
  • Whether a past customer's complaint was fair

Checking these documents confirms that a contractor is insured, covered, and legally registered. It does not certify their workmanship and it does not guarantee an outcome. References, a detailed written contract, and a payment schedule tied to completed milestones are what protect you on quality.

Common questions

Do renovation contractors need a licence in Canada?
It depends entirely on the province. Quebec requires every construction and renovation contractor to hold an RBQ licence, and hiring an unlicensed one is illegal. Alberta requires a prepaid contracting business licence for most residential renovators who take payment before the work is finished. Ontario, British Columbia, and most other provinces do not license general contractors or renovators at all, which means anyone can advertise renovation work. Specific trades such as electrical, gas, and plumbing are compulsory almost everywhere.
What is a workers' compensation clearance certificate and why does it matter?
It is a number issued by your province's workers' compensation board confirming that a business is registered and current on its premiums and reporting. If a worker is injured on your property and the contractor has no coverage, you can become responsible for those costs. Verify the number on the board's own website, because a certificate the contractor emails you may be expired or altered. In Ontario, WSIB clearance is valid for up to 90 days and has to remain in effect for the whole time the contractor is working.
How much liability insurance should a renovation contractor carry?
Two million dollars in commercial general liability is the common minimum for residential renovation work, and larger structural projects often warrant more. Ask for the insurer and policy number, then phone the broker directly to confirm the policy is active. Requesting to be named as an additional insured is reasonable on a large project.
Is a solo contractor without workers' compensation coverage a problem?
Not necessarily. In Ontario, an independent operator with no employees who works exclusively on existing private residences and is hired and paid directly by the homeowner is exempt from covering themselves. That is a real and legal exemption. What matters is that the exemption is stated openly rather than used to paper over a gap, and that they still carry liability insurance. If they bring anyone else on site, those workers do need coverage.
How large a deposit is normal?
Roughly 10 to 15 percent is typical, and it should be tied to ordering materials rather than simply securing your spot. Payments after that should be tied to completed milestones you can inspect. Holding back the final payment until deficiencies are corrected and any required inspections have passed is standard practice, not an insult.
Can renoco.ca tell me whether a specific contractor is good?
No. We publish the checks you can make yourself and where to make them. We do not rate contractors, run a directory, sell leads, or pass your details to anyone. Verifying paperwork confirms a business is registered and insured; it says nothing about the quality of their work. References and a detailed written contract are what protect you there.

Next steps

Once you have shortlisted contractors who check out, make them compete on the same information.

Quote comparison checklistCheck permit requirementsBuild a budget range

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