How to Hire a Reliable Contractor in Toronto

# How to Hire a Reliable Contractor in Toronto

Hiring a contractor is one of the most important decisions you will make during any home renovation. A great contractor can turn your vision into reality on time and on budget. A bad one can leave you with shoddy work, cost overruns, and months of stress. In a market as large and varied as Toronto and the GTA, finding the right contractor requires research, due diligence, and a clear understanding of what to look for and what to avoid.

This guide walks you through the complete process of hiring a reliable contractor in Toronto, from getting quotes to signing a contract and managing the project through completion.

## Start With Multiple Quotes

The foundation of a good hiring decision is comparison. Aim to get **3 to 5 detailed, written quotes** from different contractors for your project. This gives you enough data points to understand the fair market price for your work and to evaluate each contractor's approach.

### How to Get Meaningful Quotes

- **Prepare a clear scope of work** — the more specific your project description, the more accurate and comparable your quotes will be

- **Provide the same information to every contractor** — if one gets your detailed plans and another gets a verbal description, you cannot compare their quotes fairly

- **Ask for itemized quotes** — a lump-sum number is not helpful. You need to see labour, materials, permits, and other costs broken out so you can identify where contractors differ

- **Beware of outliers** — if one quote is dramatically lower than the others, that is a red flag, not a bargain. It often means the contractor has missed something, plans to cut corners, or will hit you with change orders later

- **Do not automatically choose the cheapest option** — the best value is not always the lowest price

## Verify Insurance and WSIB Coverage

Insurance is non-negotiable. Before hiring any contractor in Toronto, verify the following:

### Liability Insurance

- Ask for a **Certificate of Insurance** showing a minimum of **$2 million in commercial general liability (CGL) coverage**

- The certificate should be current and name you (or your property address) as an additional insured

- Call the insurance company directly to verify the policy is active — some contractors let policies lapse

- Liability insurance protects you if the contractor damages your property, a neighbour's property, or if someone is injured on your job site

### WSIB (Workplace Safety and Insurance Board) Coverage

- WSIB coverage protects workers who are injured on the job and protects you from being held liable for workplace injuries

- Ask for a **WSIB clearance certificate** — this confirms the contractor is registered and in good standing

- You can verify WSIB status online at wsib.ca

- **If a contractor does not have WSIB coverage and a worker is injured on your property, you could be held financially responsible** — this is a serious risk that many homeowners do not understand

- Independent operators (sole proprietors with no employees) may be exempt from mandatory WSIB registration, but reputable sole proprietors will still carry optional coverage

## Understand Ontario's Contractor Licensing Landscape

One of the most important things Toronto homeowners need to understand is this: **Ontario does not require a general contractor license**. There is no provincial licensing body that certifies general contractors, no mandatory exam, and no registration requirement.

This means anyone can call themselves a general contractor in Ontario. While this does not mean all unlicensed contractors are unqualified, it does mean that the responsibility for vetting falls squarely on you as the homeowner.

### Trade-Specific Licenses That ARE Required

While general contracting is unregulated, several specific trades do require licensing and certification:

| Trade | Licensing Body | What to Verify |

|-------|---------------|----------------|

| **Electrical** | Electrical Safety Authority (ESA) | ECRA/ESA licence number |

| **Gas/HVAC** | Technical Standards and Safety Authority (TSSA) | TSSA registration for gas work |

| **Plumbing** | City of Toronto (Municipal Licensing) | Plumbing licence from the City |

| **Refrigeration** | Ontario College of Trades (now SkilledTradesOntario) | Certificate of Qualification |

- **Electrical work** must be performed by a Licensed Electrical Contractor (LEC) registered with the ESA. Permits for electrical work are pulled through the ESA, not the City. Ask for the contractor's ECRA/ESA licence number and verify it at esasafe.com

- **Gas work** (furnaces, water heaters, gas fireplaces, gas lines) must be performed by a TSSA-registered contractor. Verify at tssa.org

- **Plumbing work** in Toronto requires a plumbing licence issued by the City of Toronto's Municipal Licensing and Standards division

- Your general contractor may hire licensed subcontractors for these trades, which is common and acceptable — but verify that the subcontractors hold the proper licences

## Check Reviews and References

In the digital age, there is no excuse for not researching a contractor's reputation before hiring:

### Online Reviews

- **Google Reviews** — the most widely used and generally reliable review platform. Look for contractors with a substantial number of reviews (20+), not just a high rating

- **HomeStars** — Canada's largest contractor review platform, widely used in the GTA. Look at both the rating and the number of reviews, and read the detailed reviews for patterns

- **Better Business Bureau (BBB)** — check for complaints, dispute resolution history, and accreditation status at bbb.org

- **Toronto Construction Network directory** — our directory features vetted Toronto and GTA contractors with business profiles, ratings, and service information

### What to Look For in Reviews

- **Consistency** — a pattern of positive reviews is more meaningful than a few glowing testimonials

- **Specificity** — detailed reviews that mention the type of work, communication, timeline adherence, and final quality are more trustworthy than vague praise

- **Response to negative reviews** — how a contractor handles criticism tells you a lot about how they will handle problems on your job

- **Recency** — focus on reviews from the past 1-2 years, as contractors can change over time

### Direct References

Ask every contractor for **3-5 references from recent projects** similar in scope to yours. Then actually call them. Ask:

- Was the project completed on time and on budget?

- How did the contractor handle unexpected issues?

- Was the job site kept clean and organized?

- Were inspections handled properly?

- Would you hire them again?

If possible, **visit a completed project in person**. Nothing replaces seeing the quality of work firsthand.

## Get Everything in a Written Contract

A handshake agreement is not a contract. Ontario's **Consumer Protection Act** provides important protections for homeowners, but only if you have a written contract.

### What Your Contract Must Include

Under Ontario's Consumer Protection Act, contracts for home renovations over $50 must include:

- **Full legal name and contact information** of the contractor, including business address

- **Detailed description of the work** to be performed

- **Total price** or a clear method for determining the price

- **Payment schedule** — amounts and timing of each payment

- **Start date and estimated completion date**

- **Materials** — specifications, brands, models, and allowances

- **Warranty information** — what is covered and for how long

- **Cancellation rights** — under the Consumer Protection Act, you have a **10-day cooling-off period** to cancel the contract without penalty

### Additional Contract Provisions to Include

Beyond the legal minimums, a strong contract should also address:

- **Permit responsibilities** — who applies for and pays for permits

- **Insurance requirements** — proof of liability and WSIB coverage

- **Change order process** — how changes to scope or materials will be documented, priced, and approved

- **Dispute resolution** — mediation or arbitration clauses

- **Cleanup and waste removal** — who is responsible for job-site cleanup and debris disposal

- **Holdback** — a percentage (typically 10%) retained until all deficiencies are resolved and the statutory lien period has expired

- **Termination clause** — conditions under which either party can terminate the contract

## Deposits and Payment Schedules

How and when you pay is one of the most important aspects of your relationship with a contractor:

### Deposit Guidelines

- **Never pay more than 10-15% as a deposit** — a reasonable deposit covers the contractor's initial costs for materials ordering and project planning

- **Never pay the full amount upfront** — this is the single biggest red flag in the industry

- **Pay by cheque or electronic transfer** — avoid cash payments, which are difficult to track and document

- **Get a receipt for every payment**

### Payment Schedule Best Practices

Tie payments to verifiable milestones, not calendar dates:

| Milestone | Recommended Payment |

|-----------|-------------------|

| Contract signing | 10% |

| Materials ordered / demolition begins | 15% |

| Rough framing complete | 15% |

| Mechanical rough-in (plumbing, electrical, HVAC) | 15% |

| Inspections passed, drywall complete | 15% |

| Finish work (flooring, cabinets, trim) | 15% |

| Final walkthrough and deficiency resolution | 10% |

| After lien holdback period (60 days) | 5% |

This structure ensures the contractor is compensated as work progresses while protecting you from paying for work that has not been completed or inspected.

## The Change Order Process

Almost every renovation involves some changes from the original plan. A well-defined change order process prevents disputes:

- **All changes must be documented in writing** before work proceeds

- The change order should describe the changed work, the cost impact (increase or decrease), and the timeline impact

- **Both parties must sign** the change order before the changed work begins

- Keep a running tally of all change orders and their cumulative impact on the total contract price

- Be wary of contractors who resist documenting changes — verbal agreements lead to disputes

## Red Flags to Watch For

Over the years, certain patterns have emerged that consistently indicate an unreliable or unscrupulous contractor:

- **Demands full payment upfront** — a legitimate contractor never needs 100% of the money before starting work

- **No physical business address** — operating only from a cell phone with no office or shop is a warning sign

- **No written contract** — if they resist putting terms in writing, walk away

- **Will not pull permits** — a contractor who offers to skip permits to "save you money" is putting you at legal and safety risk

- **Pressures you to decide immediately** — "this price is only good today" is a high-pressure sales tactic, not professional conduct

- **Cannot provide references** — every established contractor should have satisfied clients willing to vouch for their work

- **No insurance or WSIB** — this exposes you to significant financial liability

- **Significantly lower quote than competitors** — if it seems too good to be true, it almost certainly is

- **Asks for payment in cash only** — this often indicates tax evasion and suggests the contractor may not be operating a legitimate business

- **No visible branding** — no business cards, no vehicle signage, no website or online presence

- **Vague or incomplete quotes** — a professional contractor provides detailed, itemized estimates

## How to Verify Past Work

Beyond checking references and reviews, there are additional ways to verify a contractor's track record:

- **Check permit history** — you can search the City of Toronto's building permit records to verify that a contractor has pulled permits for previous projects

- **Ask to see their portfolio** — reputable contractors maintain photos and documentation of completed projects

- **Visit an active job site** — with permission, visiting a project in progress tells you a lot about how a contractor manages their work (cleanliness, organization, worker supervision)

- **Check court records** — the Ontario Superior Court of Justice and Small Claims Court records can reveal lawsuits and liens against a contractor

- **Verify business registration** — check the Ontario Business Registry to confirm the contractor's business is properly registered

## What to Do If Things Go Wrong

Even with thorough vetting, problems can arise. Here is what to do:

### Step 1: Document Everything

- Keep detailed records of all communications, payments, and work performed

- Take photographs of any deficient or substandard work

- Save all emails, text messages, and written correspondence

### Step 2: Communicate in Writing

- Put your concerns in writing (email is ideal) and send them to the contractor

- Clearly describe the issue and what you expect in terms of resolution

- Set a reasonable deadline for response

### Step 3: Escalate Formally

If direct communication does not resolve the issue:

- **Ontario's Consumer Protection Act** — file a complaint with the Ministry of Public and Business Service Delivery. If the contract violates the Consumer Protection Act, you may have grounds for a full or partial refund

- **HomeStars or BBB complaint** — filing a public complaint often motivates contractors to resolve issues

- **Construction lien** — if you are a subcontractor or supplier who has not been paid, you can file a construction lien under Ontario's Construction Act

- **Small Claims Court** — for disputes up to $35,000, Ontario's Small Claims Court is a relatively accessible and affordable legal forum

- **Superior Court** — for disputes exceeding $35,000

### Step 4: Consult a Lawyer

For significant disputes, consult a lawyer who specializes in construction law. Many offer initial consultations at no charge. The investment in legal advice early can save you far more in the long run.

## Using Toronto Construction Network to Find Contractors

Finding reliable contractors does not have to be a shot in the dark. The Toronto Construction Network directory is a resource designed to help GTA homeowners connect with local contractors across dozens of trade categories. Each listing includes business profiles, contact information, and service details to help you start your search with confidence.

Whether you need a general contractor for a full home renovation, a licensed electrician for a panel upgrade, or a plumber for a basement bathroom rough-in, browsing vetted local professionals is a smart first step before picking up the phone.

## Practical Checklist Before Signing

Before you sign a contract with any Toronto contractor, confirm the following:

- [ ] You have at least 3 written, itemized quotes

- [ ] Liability insurance certificate verified (minimum $2M)

- [ ] WSIB clearance certificate obtained and verified

- [ ] Trade-specific licences confirmed (ESA, TSSA, City plumbing)

- [ ] Online reviews checked (Google, HomeStars, BBB)

- [ ] References contacted and questions asked

- [ ] Written contract reviewed with all required provisions

- [ ] Payment schedule tied to milestones, not dates

- [ ] Change order process defined in contract

- [ ] Permit responsibilities clearly assigned

- [ ] Holdback percentage agreed upon

- [ ] Start and completion dates specified

- [ ] Warranty terms documented

## Final Thoughts

Hiring a contractor in Toronto requires more due diligence than in many other jurisdictions precisely because the industry is largely unregulated at the general contractor level. The responsibility to verify credentials, check references, and protect yourself with a proper contract falls on you as the homeowner.

Take the time to do this work before construction begins. The hours you spend vetting contractors and negotiating a strong contract will save you thousands of dollars and countless headaches during and after your renovation. A great contractor is worth every penny, and finding one starts with asking the right questions and refusing to cut corners on the hiring process.