Contract Signing Guide
Most homeowners sign contractor agreements too fast. Here's what to read — and request — before the pen touches paper.
The minute you sign, the contractor's version of what was agreed becomes the default. This guide covers the six things every Ontario homeowner should verify before any contract is executed.
6 min read Ontario homeowners Updated 2026
The Stakes
A signed contractor agreement is a legally binding document — but most homeowners treat it like a receipt
In Ontario, a contractor agreement doesn't need to be complex to be enforceable. A short written quote with a signature on it, combined with a deposit payment, is often enough to constitute a binding contract. The problem is that many homeowners sign without reading the scope description, without confirming the change order process, and without understanding their rights under the Ontario Construction Act if a dispute arises.
30%
of contractor disputes in Ontario arise from terms the homeowner says they didn't understand at signing
10%
statutory holdback right under the Ontario Construction Act — applies to every project over $10,000
$35K
Ontario Small Claims Court limit — the resolution path for most residential contractor disputes
Where Disputes Start
The four contract elements homeowners most often skip — and why each one matters
Where residential contractor disputes originate% of disputes
Change order disputes
27%
Timeline disagreements
21%
Payment schedule issues
14%
"The most common reason homeowners lose contractor disputes isn't that the contractor acted illegally — it's that the contract they signed supported the contractor's interpretation of what was agreed."
Pre-Signature Checklist
6 things to confirm before you sign — check off each one
Work through this list before signing any contractor agreement. If any item is missing, request it in writing before you proceed.
Scope of work is fully described in writing. Not just a price — the actual tasks, materials, inclusions, and exclusions are written into the agreement or a linked scope document.
Start and end dates are specified. The agreement includes a clear start date and either a completion date or a duration estimate in writing.
Change order process is defined. The agreement states that any scope changes must be approved in writing before work proceeds, and describes how changes will be priced.
Payment schedule is milestone-based. Payments are tied to defined project milestones — not arbitrary dates or "upon request." The holdback (10% of each draw) is maintained throughout the project.
Warranty terms are stated. The agreement specifies the warranty period for labour and the manufacturer's warranty for materials. "Standard warranty" without specifics is not sufficient.
WSIB clearance certificate and proof of liability insurance are on file. You have received both documents before any work begins — not promised for later.
Ontario Construction Act holdback: For any residential project over $10,000, you have the right to hold back 10% of each progress payment until 45 days after the project is substantially complete and no liens have been registered. This applies automatically under Ontario law — you don't need to negotiate it, but you do need to know it exists before you sign a payment schedule that doesn't account for it.
