---
title: "Signs of a bad contractor in Ontario, before you hire"
url: "https://www.jarviscontracting.ca/post/signs-of-a-bad-contractor-before-you-hire-an-ontario-homeowner-s-checklist"
description: "Red flags to catch before you sign: a big cash deposit, no written contract, no permit, no named electrician. Ontario says deposits of 10% or less, as of 2026."
publisher: "Jarvis Contracting"
dateModified: "2026-10-05"
---
# Signs of a bad contractor in Ontario, before you hire

By Jarvis Contracting. Published 2026-09-27, updated 2026-10-05.

The clearest signs of a bad contractor show up before you sign: a big deposit asked for in cash, no written contract, talk of skipping the permit, no business address, and no name for the licensed electrician. Ontario recommends a deposit of no more than 10% and says any renovation contract worth more than $50 must be in writing ([Ontario, Your rights when starting home renovations or repairs, updated 6 Aug 2026](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs)). One more thing to get right: renovators aren't licensed by the HCRA, so "check their HCRA licence" is the wrong test for a renovation.

## Key takeaways

- Ontario recommends a renovation deposit of no more than 10%, as of October 2026 ([Ontario, Your rights when starting home renovations or repairs](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs)).
- Any home renovation contract worth more than $50 has to be in writing in Ontario ([Ontario, Your rights when starting home renovations or repairs](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs)).
- A contract you sign at home comes with a 10 calendar-day cooling-off period ([Ontario, Your rights when starting home renovations or repairs](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs)).
- In a CTV News and Nanos poll, 26.7% of Canadians had paid for renovation work that went unfinished, or knew someone who had ([CP24, 9 Jul 2026](https://www.cp24.com/news/canada/2026/07/09/he-just-disappeared-this-contractor-has-a-long-list-of-angry-clients/)).
- WSIB clearance certificates last up to 90 days, so ask for a current one, not an old copy ([WSIB, Clearance certificate policy](https://www.wsib.ca/en/operational-policy-manual/clearance-certificate-construction)).

## What are the biggest red flags before you sign?

Most bad jobs give a warning at the kitchen table. Here are the ones we'd walk away over, and what to ask when you see them:

| Red flag | Why it matters | What to ask or check |
|---|---|---|
| A big deposit, especially in cash | Your money is gone before any work is inspected | Ontario recommends 10% or less; pay by cheque or transfer with a receipt |
| No written contract | You have nothing to hold them to; Ontario requires one over $50 | A contract with scope, price, payment schedule and dates |
| "You don't need a permit for this" | Unpermitted work is uninspected work, and you own the problem | Ask who applies, and what drawings go in |
| No business address, only a cell number | You can't find them if they stop answering | A real address on the contract and the invoice |
| Can't name the electrician | Only licensed electrical contractors may do electrical work in your home | The licensed electrical contractor's name, and that ESA is notified |
| No WSIB clearance certificate | Workers and subcontractors on your job should be covered | A current clearance certificate |
| A price that's only good today | Pressure stops you comparing quotes | Take the 10-day cooling-off seriously if you sign at home |

Note: The rules in this table are Ontario's as of October 2026, with sources linked below. The rest is what we look for on site, not a legal test.

## How much deposit is too much?

Anything much over 10% should get a hard question. Ontario's recommendation is a deposit of no more than 10% of the job, and the stories in the news are what happens past it.

In a CTV W5 investigation, a Brampton owner paid $33,000, about 90% of the contract, for a basement apartment that was still unfinished two and a half years later. "He just disappeared," the owner said ([CP24, 9 Jul 2026](https://www.cp24.com/news/canada/2026/07/09/he-just-disappeared-this-contractor-has-a-long-list-of-angry-clients/)). A Mississauga family paid $85,000 for a basement apartment with a separate entrance that was never finished: "We are paying for something we didn't get" ([CP24, 22 May 2025](https://www.cp24.com/local/peel/2025/05/22/ontario-family-says-company-doing-their-basement-renovation-took-85000-and-never-finished-the-work/)).

The pattern in both is the same. Most of the money went in early, and nothing tied the next payment to work you could see. Our guide to [renovation payment schedules](https://www.jarviscontracting.ca/post/home-renovation-payment-schedule-ontario-guide) shows how to set milestones so that can't happen.

Cash makes it worse. A cash deal leaves you no record of what you paid, and a contractor who insists on it is telling you something about how they run the rest of the business.

## Why does the permit question tell you so much?

Because a contractor's answer shows whether they plan to have their work inspected. In Ontario, no one may construct or demolish a building without a permit from the chief building official ([Building Code Act, s. 8](https://www.ontario.ca/laws/statute/92b23)), and the province tells homeowners that getting the permits is their responsibility ([Ontario, Your rights when starting home renovations or repairs](https://www.ontario.ca/page/your-rights-when-starting-home-renovations-or-repairs)).

That last part is where people get caught. The permit is yours, but a contractor can apply on your behalf: Ontario's permit rules accept the owner or an authorized agent as the applicant ([Ontario Building Code](https://www.publications.gov.on.ca/301880)). So the warnings are a contractor who says moving a wall or adding a bathroom "doesn't need one," or one who tells you to apply in your own name and then hands you no drawings to apply with.

A RedFlagDeals thread from Whitby shows how it goes. A family paid $30,000 for a bathroom for elderly relatives and came to suspect the permits had been skipped and the contractor wasn't qualified for a second job ([RedFlagDeals, 1 Apr 2024](https://forums.redflagdeals.com/need-help-dealing-contractor-taking-advantage-elderly-family-durham-region-2684774/)). By the time you're asking strangers online, the work is already behind the drywall.

## Who is doing the electrical and gas work?

A general contractor should be able to name them before you sign. Licensed electrical contractors are the only businesses in Ontario legally allowed to do electrical work in your home, general contractors aren't licensed for it, and a notification of work has to be filed with the Electrical Safety Authority (ESA) before the work starts ([ESA, Finding the right contractor](https://esasafe.com/compliance/finding-the-right-contractor/)). Ontario's homeowner page says you can check a licence in ESA's database.

Gas is the same idea. Installing, altering or removing a gas appliance or piping needs a person who holds a certificate for that work ([O. Reg. 212/01](https://www.ontario.ca/laws/regulation/010212)), and that system runs through the Technical Standards and Safety Authority (TSSA). If the answer to "who's moving the furnace?" is "my guy," ask for his name and his certificate.

## Should my contractor have a WSIB clearance certificate?

Ask for one. The Workplace Safety and Insurance Board (WSIB) requires people who own or run a construction business to have coverage, with some exceptions ([WSIB, Expanded compulsory coverage](https://www.wsib.ca/en/businesses/registration-and-coverage/expanded-compulsory-coverage-construction-industry)). One exception covers an owner-operator doing only home renovation work directly for the person living in the house, but their workers and subcontractors must still be covered ([WSIB, Operational policy](https://www.wsib.ca/en/operational-policy-manual/expanded-compulsory-coverage-construction)).

To be straight about the rule: a homeowner who hires a contractor only for that kind of exempt home renovation work isn't required to get a clearance certificate ([WSIB, Clearance certificate policy](https://www.wsib.ca/en/operational-policy-manual/clearance-certificate-construction)). It's still a fair question. A firm with a crew should be able to produce a current one, and since a certificate lasts up to 90 days, an old copy tells you nothing about today.

## Does my renovator need an HCRA licence?

No. The Home Construction Regulatory Authority (HCRA) licenses people who build and sell new homes. On renovations, HCRA's own words are that "renovators aren't licensed or regulated like new home builders and sellers are" ([HCRA, Finding a renovator](https://www.hcraontario.ca/resources/finding-a-renovator/)). HCRA also says renovations or upgrades to an existing home typically don't make it a new home, so the builder needs no licence ([HCRA, Do I need a licence](https://www.hcraontario.ca/do-i-need-a-licence/)).

Some contractor blogs list a missing HCRA registration as a renovation red flag. For a kitchen, a basement or an addition, that's wrong, and a renovator can't show you a licence that doesn't exist for their work. The same goes for Tarion: its warranties cover new homes, and it excludes "alterations, deletions or additions made by the homeowner" ([Tarion, What is not covered](https://www.tarion.com/homeowners/what-is-not-covered)). Coach houses, laneway homes and tiny homes are the exception to watch: HCRA says they generally need a licensed builder and warranty coverage ([HCRA, Do I need a licence](https://www.hcraontario.ca/do-i-need-a-licence/)). We explain the split in [HCRA and Tarion explained](https://www.jarviscontracting.ca/guides/hcra-and-tarion-explained).

So for a renovation, there's no public register to look your contractor up in. You check them the old way: past jobs you can visit, references you can call, permits on past work, the licensed trades they use, and the contract itself.

## What if they pressure you to sign at the door?

Don't sign that day. If you do sign a renovation contract at home, Ontario gives you a 10 calendar-day cooling-off period, and the province's business guide says you can cancel in that time for any reason without a cancellation fee ([Ontario, Guide for home renovation and roofing businesses, updated 25 Sep 2024](https://www.ontario.ca/page/guide-home-renovation-and-roofing-businesses)).

Pressure is how big losses start. A Toronto couple lost $480,000 on a roofing renovation after being pressured into work that was incomplete and unnecessary ([CTV News Toronto, 8 Jul 2025](https://www.ctvnews.ca/toronto/consumer-alert/article/a-horror-show-toronto-couple-loses-480000-in-botched-roofing-renovation/)). A good contractor's price will still be there next week.

## What to check in Whitby and Oshawa

In Durham Region, Ontario, the towns publish the cost of building without a permit, and a contractor who skips one passes that cost to you. Whitby charges the greater of $100 or 25% of the application fee when work starts before a permit application is made ([Town of Whitby, 2026 Building Services Fees, Schedule N](https://media-003-ca.cdn.govstack.com/whitby-ca/media/5aqjt5ww/2026-building-permit-fees-schedule-n.pdf)). Oshawa adds a surcharge of 50% of the permit fee when construction has begun and no application has been received ([City of Oshawa, By-law 33-2009 as amended](https://media-002-ca.cdn.govstack.com/oshawa-016-ca/media/em3h4lr3/bylaw-33-2009-as-amended-by-by-law-118-2025.pdf)).

Basement apartments carry one more Whitby step. On top of the building permit, every additional dwelling unit in Whitby has to be registered with the Town, at $268 ([Town of Whitby, Additional dwelling units](https://www.whitby.ca/services-and-payments/building-and-renovating/additional-dwelling-units/)). A contractor offering you a "legal basement" in Whitby who never mentions the permit or the registration probably hasn't built one here.

Finding someone in Durham is harder than it should be. One RFD poster said it plainly: "It's so hard to research them online" ([RedFlagDeals](https://forums.redflagdeals.com/renovation-contractor-durham-2542118/)). The Town of Whitby's Building Division takes calls at 905.430.4305 ([Town of Whitby, Building and renovating](https://www.whitby.ca/services-and-payments/building-and-renovating/)), and the City of Oshawa's building inspectors at 905-436-3311 ([City of Oshawa, Building inspections](https://www.oshawa.ca/living-here/building-and-renovating/building-inspections/)), if you want to ask about permits on your own house.

## How we run the first meeting

James comes to the house first and looks at what's there: the structure, the panel, the plumbing, what's behind the wall you want gone. Before you sign, you'll know who our electrician and plumber are, what the contract covers, and what each payment is for. Then Ceara Jarvis's studio, Juliette Interiors, does the design and the drawings, and we take those drawings through the permit. One crew builds it, we book the inspections, and we walk the house with you at handover.

Ask us every question on our [list of questions to ask a contractor](https://www.jarviscontracting.ca/guides/questions-to-ask-a-contractor). Explore our case studies on the [projects page](https://www.jarviscontracting.ca/projects), and you can read how a job runs on the [process page](https://www.jarviscontracting.ca/process).

## Questions

### What is the biggest sign of a bad contractor in Ontario?

The biggest sign of a bad contractor in Ontario is a request for a large deposit before any work is inspected, often in cash and often with no written contract. Ontario recommends a deposit of no more than 10% and requires a written contract for any renovation worth more than $50.

### Do renovators in Ontario need an HCRA licence?

Renovators in Ontario don't need an HCRA licence. The Home Construction Regulatory Authority licenses new home builders and sellers, and it says renovators aren't licensed or regulated the way builders are. A missing HCRA licence is not a red flag for a renovation; a missing written contract or permit is.

### Is it a red flag if a contractor asks me to get the permit?

Ontario says getting building permits is the homeowner's responsibility, so a contractor asking you to sign the application isn't wrong in itself. The red flag is a contractor who gives you no drawings to apply with, says the job doesn't need a permit, or wants to start before one is issued.

### How do I check who is doing the electrical work?

Ask the contractor to name the licensed electrical contractor before you sign, then look the licence up in the Electrical Safety Authority's database. In Ontario, only licensed electrical contractors may do electrical work in your home, and the work has to be notified to ESA before it starts.

### Is asking for cash a sign of a bad contractor?

A contractor who insists on cash is a warning sign, because a cash payment leaves you without a record of what you paid. Pay by cheque or bank transfer, get a receipt every time, and keep the receipts with your written contract.

### Can I cancel if a contractor pressured me into signing at home?

A renovation contract signed at your home in Ontario has a 10 calendar-day cooling-off period. Ontario's guide for renovation businesses says you can cancel in that time for any reason without paying a cancellation fee.

If you're in Whitby or nearby and want a second opinion on a quote, [send it to us](https://www.jarviscontracting.ca/contact).