Hiring the wrong renovation contractor is the most expensive mistake a Toronto homeowner can make. A bad contractor can leave you with shoddy work, blown budgets, abandoned projects, and legal headaches that cost more to fix than the original renovation. This guide gives you the exact checklist we wish every homeowner used before signing a contract — covering credentials, red flags, contract terms, and how to protect yourself throughout the process.
The Complete Contractor Hiring Checklist
Use this checklist before signing anything. A contractor who checks every box is one you can trust with your home and your money.
1. Verify Their Business Credentials
| What to Check | Why It Matters | How to Verify |
|---|---|---|
| Business registration | Legal entity that can be held accountable | Ontario Business Registry search |
| HST number | Legitimate business collecting tax properly | Ask for it — CRA lookup |
| WSIB coverage | Workers covered for injuries on YOUR property | WSIB clearance certificate |
| Liability insurance ($2M minimum) | Protects your home from accidental damage | Request certificate of insurance |
| Municipal business licence | Required in many GTA municipalities | City of Toronto business licence search |
Non-negotiable: Any contractor who cannot produce current WSIB coverage and liability insurance should be eliminated immediately. If a worker is injured on your property and the contractor has no WSIB, you can be held liable.
2. Check Their Track Record
- Google Reviews — look for at least 20+ reviews with a 4.5+ star average. Read the negative reviews carefully; how the contractor responds tells you more than the positive ones.
- HomeStars or Houzz profile — check for detailed project photos and verified reviews.
- References — ask for 3 recent references from projects similar to yours. Actually call them and ask: Was it on budget? On time? How did they handle problems?
- Portfolio of completed work — before/after photos of actual projects, not stock images. Bonus if they can show you a recently completed project in person.
- Better Business Bureau (BBB) — check for complaints and resolution history.
- Years in business — longevity matters. Fly-by-night contractors disappear when things go wrong. Look for 5+ years minimum.
3. Get Multiple Quotes — the Right Way
Always get at least 3 quotes, but more importantly, make sure you are comparing the same scope of work. Here is how:
- Define your scope first. Write out exactly what you want done before contacting any contractor. The more specific you are, the more accurate and comparable the quotes will be.
- Provide the same brief to all contractors. This ensures you are comparing apples to apples.
- Beware the lowball quote. If one quote is 30-40% lower than the others, that is a red flag, not a deal. Low bids often lead to change orders, corners cut, or abandoned mid-project.
- Ask what is included AND excluded. Permits? Disposal? Cleanup? Paint touch-ups? A detailed quote leaves no room for surprise charges.
| Quote Component | Should Be Included |
|---|---|
| Detailed scope of work | Yes — line by line |
| Material specifications | Yes — brand, model, colour |
| Labour costs | Yes — separated or clearly stated |
| Permit costs | Yes — who pulls and pays |
| Timeline with milestones | Yes — start, key dates, completion |
| Disposal and cleanup | Yes |
| Warranty terms | Yes — labour and materials |
| Payment schedule | Yes — tied to milestones |
4. Understand the Contract Before You Sign
A handshake is not a contract. A one-page quote is not a contract. You need a detailed, written agreement that protects both parties. Here is what every renovation contract must include:
- Full legal names — your name and the contractor’s registered business name and address
- Detailed scope of work — every task described clearly enough that a third party could understand what was agreed to
- Material specifications — exact products, brands, models, colours, and quantities. “Builder-grade” is not a specification
- Total price and payment schedule — broken into stages with clear milestones. Never pay more than 10-15% as a deposit
- Start and completion dates — with a reasonable allowance for weather and permit delays
- Change order process — how changes are requested, approved, and priced. This must be in writing before any change is made
- Permit responsibilities — who pulls permits, who pays for them, who schedules inspections
- Warranty — minimum 1 year on labour, manufacturer warranty on materials
- Dispute resolution — how disagreements are handled (mediation, arbitration, etc.)
- Right to terminate — conditions under which either party can end the contract
- Lien protection — a clause requiring the contractor to provide statutory declarations confirming subcontractors and suppliers have been paid
Ontario law: Under the Ontario Consumer Protection Act, you have a 10-day cooling-off period for contracts signed in your home. Use it if you have second thoughts.
5. Know the Red Flags
These are warning signs that a contractor may not be trustworthy. Any one of these should make you pause. Multiple red flags mean walk away:
- Demands large deposit upfront — anything over 15% before work begins is excessive. “I need 50% upfront for materials” is a classic scam
- Cash-only, no invoice — this means no HST, no paper trail, and no recourse if things go wrong
- No written contract — “We do not really need a contract, I will take care of you” is the prelude to a nightmare
- Cannot provide insurance or WSIB — “I will get it to you later” means they do not have it
- Pressures you to decide immediately — “This price is only good today” is a manipulation tactic
- No physical business address — a P.O. box or no address at all makes them hard to find when you need warranty work
- No permits — “We do not need a permit for this” (when you clearly do) means they are cutting corners from day one
- Negative or aggressive when you ask questions — a professional welcomes questions; a scammer gets defensive
- Subcontracts everything — if the contractor is just a middleman who never sets foot on your job site, you are paying a markup for no value
The Payment Schedule: Protecting Your Money
How you structure payments is your biggest protection against an incomplete or abandoned project. Here is a safe payment schedule for a typical Toronto renovation:
| Milestone | Payment | What Should Be Complete |
|---|---|---|
| Contract signing | 10-15% | Deposit to secure your spot on the schedule |
| Demolition complete | 15-20% | All tear-out done, site cleaned, ready for rough-in |
| Rough-in complete | 20-25% | Framing, electrical, plumbing rough-in done, inspections passed |
| Mid-project | 20-25% | Drywall, flooring, cabinets installed |
| Substantial completion | 15-20% | Project 90%+ done, finishes installed |
| Final walkthrough | 5-10% | All punch list items resolved, you are 100% satisfied |
Critical rule: Always hold back 5-10% until every punch list item is completed to your satisfaction. Once you have paid in full, your leverage to get things fixed drops to nearly zero.
During the Renovation: What to Expect
Communication
- Your contractor should provide weekly updates at minimum — in writing (email or text)
- You should have one primary contact (the project manager) for all questions and concerns
- A daily summary of what was accomplished and what is planned for tomorrow is ideal
- Photos of progress should be shared regularly
Site Management
A well-managed job site reflects a well-managed project. Look for:
- Dust barriers between the work zone and your living areas
- Floor protection on all pathways through your home
- Daily cleanup — end of each work day, the site should be swept and organized
- Materials organized and stored properly, not scattered around your yard
- Respectful behaviour — workers should not be playing loud music, smoking on your property, or using your bathroom without asking
Dealing With Problems
Every renovation hits unexpected issues. What matters is how they are handled:
- Hidden damage (mould, rot, outdated wiring) — a good contractor documents it immediately and presents you with options and costs before proceeding
- Delays — weather, permit holds, and supply chain issues happen. A good contractor communicates them early and adjusts the schedule transparently
- Change orders — any change to the original scope must be documented in writing with a price before work begins. Never approve verbal change orders
After the Renovation: Closing the Project Properly
The Final Walkthrough
Before making your final payment, do a thorough walkthrough:
- Check every surface for damage, scratches, and paint touch-ups
- Test every outlet, switch, faucet, and appliance
- Open and close every door, drawer, and cabinet
- Check grout lines, caulking, and trim joints
- Look at the work in different lighting conditions (daylight vs evening)
- Create a written punch list of items that need attention
Documents to Collect
| Document | Why You Need It |
|---|---|
| Final inspection certificate | Proves the work meets building code |
| Warranty documents | For both labour and materials |
| Statutory declaration | Confirms all subcontractors and suppliers are paid (protects against construction liens) |
| Paint colours and product specs | For future touch-ups and matching |
| Appliance manuals and warranties | Registration and service info |
| As-built drawings | Shows what was actually built (important if walls were moved or plumbing relocated) |
Construction Liens: Protecting Your Property
This is the risk most homeowners do not know about until it is too late. Under Ontario’s Construction Act, subcontractors and material suppliers can place a lien on your property if the general contractor does not pay them — even if you have paid the general contractor in full.
How to Protect Yourself
- Statutory holdback: Ontario law requires you to hold back 10% of each payment for 60 days after substantial completion. This money protects against liens from unpaid subcontractors.
- Request statutory declarations from your contractor confirming that all subcontractors and suppliers have been paid before releasing each draw.
- Joint cheques: For large subcontractor payments, consider issuing joint cheques payable to both the general contractor and the subcontractor.
- Verify independently — if you know who the key subcontractors are (plumber, electrician), confirm they have been paid.
Frequently Asked Questions
How much should I pay as a deposit for a renovation in Toronto?
How do I verify if a contractor has WSIB coverage?
What is the Ontario 10-day cooling-off period?
What is a construction lien and how do I protect myself?
Should I hire a contractor who does not pull permits?
How do I handle disputes with my renovation contractor?
Ready to Start Your Renovation the Right Way?
At Red Stone Contracting, we welcome every item on this checklist. We carry full WSIB coverage and $5M in liability insurance. We provide detailed written contracts. We pull all required permits. And we have hundreds of verified Google reviews from Toronto homeowners who trusted us with their homes.
Call us: (905) 901-1006
Or: Request a free consultation online
Red Stone Contracting has served the Greater Toronto Area since 2001. We specialize in kitchen, bathroom, basement, and full home renovations. Your project deserves a contractor who does things right from day one.