How to choose a home renovation contractor in Toronto
Verify five things before you look at price:
A City of Toronto renovation contractor licence you can check with the city
A liability insurance certificate sent to you by their broker
A current WSIB clearance certificate you verify with WSIB
References you can phone, on jobs like yours
Finished work you can stand in
Then compare itemized quotes priced on the same drawings. A contractor who clears all five is worth comparing on price. One who clears none is a risk at any price. Everything below is what we would want a homeowner to ask us, so use it on First Place Homes too.
Check the paper and check it yourself
The licence. The City of Toronto licenses renovation contractors. Ask for the number and check it with the city.
Liability insurance. Have the broker send the certificate to you directly, with your name on it. A PDF forwarded by email can be out of date.
WSIB clearance. Ask for a clearance certificate, verify it through WSIB and read the expiry date. If an uninsured worker is hurt in your basement, that can land on you.
References. Ask for recent jobs of your type and phone them. Ask what went wrong and how it was handled.
Finished work. Photos are a start. A finished house of your vintage is better and a contractor working in the Beaches or Bloor West Village should have one.
The questions to ask and what a good answer sounds like
"Who runs the site day to day, and how many jobs are you running?"
Good: names the person, says how often they are on site, gives a number of jobs and gives you a number to call when something goes wrong. Weak: talks about the team and never names anyone. In many renovation companies the person at your kitchen table works on commission. Harvey quotes the job, runs the job and checks it before it closes.
"Who pulls the permit?"
Good: they do, as your agent and here is the fee. Weak: they ask you to pull it, which makes you responsible for the work meeting code. Some ask because they cannot get one.
"What is not in this price?"
Good: an exclusions list handed over without hesitation. Weak: everything is included, which is never true.
"How is a change priced?"
Good: written up and priced, then signed by you before the work happens. Weak: it gets sorted out at the end.
"What is the warranty, and where is it written?"
Ours is a 1-year workmanship warranty, with manufacturer warranties handed over at close out. A verbal warranty is worth nothing eighteen months later. A company with 29 years behind it and one phone number is a different bet than one incorporated last spring.
How to read a quote
An itemized quote beats a lump sum because you can see the scope inside it. Look for stages with money against each, a written inclusions and exclusions list, allowances with a figure beside each and separate lines for permits, drawings, engineering, disposal and clean-up.
Check how HST is handled, because one quote showing it and one leaving it out will look like a real price difference. Allowances are placeholders for things you have not chosen yet, usually tile, fixtures, lighting and hardware. Two quotes with different allowances cannot be compared until you match them.
Why the cheapest quote usually costs the most
A quote well below the others is telling you something specific. Find it before you sign.
No permit line. Leaving the permit out is the fastest way to look cheap and it is your house that fails at resale.
Allowances at builder grade, so the tile you want becomes an extra later.
Missing trades. Check that electrical, plumbing, HVAC, painting and disposal are inside the number.
"As per site conditions", which moves every unknown onto you at a price set later.
No line for a beam or for engineering when the drawings call for one.
Old wiring and drains patched around, with nothing priced to fix them.
A cheap quote is usually accurate for the work described in it. The work described in it is less work.
Deposits, payment schedules and cash
Payments should follow completed work. A normal structure starts with a deposit at signing for mobilization and materials ordered up front. Progress payments land at defined stages such as completed rough-in and completed drywall and the final payment comes once the deficiency list is cleared.
Warning signs on payment terms:
A deposit that is a large share of the contract before anyone is on site
Payments tied to calendar dates instead of finished stages
A request that you pay suppliers directly
Full payment demanded before deficiencies are done
A cash deal removes the invoice and the invoice is what a warranty claim, an insurance claim, a lien and a future buyer's lawyer all run on. The discount never covers that.
What to put in the contract
Parties, property address and the drawings the price is based on
Full scope, with inclusions and exclusions written out
Contract price, allowances with a number against each and how HST is handled
Payments tied to completed stages, final payment after deficiencies
Start date, stage dates and working hours
The change order process and who applies for permits
Warranty period, the deficiency process and proof of insurance and WSIB kept current
Red flags
No written contract or a one-page quote carrying a single number
Pressure to decide today or a price that expires this week
No fixed business address
A deposit that is a large share of the job
Refusing to pull permits or asking you to pull them
Cash only or a discount for cash
No licence, insurance certificate or WSIB clearance to show
Use this list on us
Ask Harvey for the licence number, the insurance certificate, the WSIB clearance and references you can phone. Ask who is on your site every day.
We run a small owner-led crew and take a limited number of jobs at a time, so a company with several crews may start sooner. And if the lowest number in the market matters most to you, we will not be it.
"Through the years, I have used Harvey and the First Place team for my house, townhouse, and condo renovations." Alstair R., interior designer
Talk to the person who will build it
Harvey has been quoting and running Toronto renovations since 1997, on more than 100 homes. Book a free 15-minute call with Harvey or call (416) 489-4083. More on our about page and our Toronto home renovation page.
Frequently asked questions
How do I check if a renovation contractor is licensed in Toronto?
Ask for the City of Toronto renovation contractor licence number and check it with the city. A business registration does not replace it.
What questions should I ask a contractor before hiring?
Ask who runs the site day to day, who pulls the permit, what is excluded from the price, how a change gets priced and where the warranty is written down.
Should I ask for an itemized quote or a lump sum?
Ask for itemized. A lump sum gives you a price and no view of the scope, so you cannot tell what has been left out.
How much deposit should a renovation contractor ask for?
Enough to cover mobilization and the materials ordered before the start, with the rest released at completed stages. Be careful with a large share paid up front.
Is it a problem to pay a contractor in cash?
Yes. Cash removes the invoice and the invoice is what supports a warranty claim, an insurance claim, a lien and your record of what was paid.