Quick Answer
A renovation contract should include a detailed scope of work, a fixed or clearly-estimated price with HST shown separately, a milestone-based payment schedule, start and completion dates, who pulls permits, proof of liability insurance and WSIB coverage, a written change-order process, allowances for finishes, a workmanship warranty, and lien-holdback and termination terms. In Ontario, never sign on a verbal quote or pay a large deposit before work is documented in writing.
Scope of work, price and a payment schedule tied to milestones
The three things every renovation contract must nail down are scope, price and how you pay. Scope means a written, room-by-room list of exactly what is included: demolition, materials, fixtures, finishes and who supplies what. Vague lines like "renovate bathroom" invite disputes, so insist on specifics. The price should be a fixed amount or a clearly-labelled estimate, with HST shown as a separate line, not buried in the total. In the GTA, treat published figures as estimates pending a site visit: a bathroom often runs from around $15k, a kitchen from roughly $25k, basement finishing about $25k to $65k, and whole-home projects $50k to $200k or more. The payment schedule should be tied to completed milestones, never front-loaded. A reasonable structure is a modest deposit, progress draws at framing, rough-in and finishing, and a final payment on completion. Be wary of any contractor asking for 40 to 50 percent up front. Ontario also requires a 10 percent holdback under the Construction Act on most projects, which protects you if a subtrade files a lien.
Permits, insurance and WSIB clearance you should verify
Confirm in writing who is responsible for pulling permits and who pays for them, because skipping this is one of the costliest GTA renovation mistakes. The contract should state which permits the job needs, that the contractor will arrange building, electrical and plumbing permits where required, and that work will pass municipal inspection. Permit requirements and fees vary by municipality, so always confirm specifics with your city's building department, whether that is Toronto, Vaughan, Mississauga, Markham or Hamilton. Just as important, verify coverage before signing. A legitimate contractor carries commercial general liability insurance, typically $2 million, and holds a valid WSIB clearance certificate so you are not exposed if a worker is injured on your property. Ask for current certificates and confirm they name your project dates. Leo Constra Developments is licensed, insured and WSIB-cleared, and we provide this documentation on request. The contract should also clarify that the contractor is responsible for licensed electricians and plumbers, and that all electrical work is ESA-inspected, which protects your insurance and future resale.
Change orders, allowances and a realistic timeline
Insist on a written change-order clause, because mid-project changes are where budgets quietly explode. The contract should state that any change to scope, materials or price must be documented and signed by both parties before the work proceeds, with the cost and schedule impact spelled out. This single clause prevents most billing disputes. Allowances are the companion safeguard: when you have not yet chosen tile, countertops or fixtures, the contract sets a dollar allowance for each, and you pay the difference only if your selection exceeds it. Make sure those allowances are realistic for GTA pricing so the headline quote is not artificially low. On timeline, the contract should give a start date, a target completion date and a note on how weather, permit delays or back-ordered materials are handled. A two-week bathroom or a multi-month whole-home reno should each have a sensible schedule. Ask how delays are communicated and whether a single project manager is your point of contact, so you are never chasing answers between trades.
Warranty, lien rights and how to end the contract
Make sure the contract spells out the warranty, your lien protection and how either side can exit. A written workmanship warranty is the clearest signal of a reputable contractor; Leo Constra Developments backs its work with a 2-year written workmanship warranty, separate from manufacturer warranties on appliances, fixtures and materials. The contract should explain what the warranty covers, how long, and how to make a claim. Under Ontario's Construction Act, a 10 percent holdback applies to most contracts and protects you against subcontractor liens, so confirm how the holdback is handled and released. Look for a clear termination clause covering what happens if work stops, quality fails or either party walks away, including how unpaid work and deposits are reconciled. Finally, check that the contract names the legal business entity, lists a real address and phone, and is signed and dated by both parties. Keep a copy of everything, including certificates and change orders. If a clause is unclear, ask before you sign, never after.
Have a project in mind?
Get a free, no-obligation quote from Leo Constra’s licensed team—20+ years of renovation experience across the GTA, backed by a 2-year workmanship warranty.
Get a Free Quote