Renovation budget overruns are nearly universal in Ontario. Here is how to plan realistically from the start.
Contingency Reserve: Mandatory
10% contingency for well-defined scope in good-condition homes. 20% for older homes, complex scope, or unknown conditions. Not padding — hidden water damage, asbestos, electrical panel upgrades, and structural surprises are routine Ontario renovation discoveries.
True Cost Inventory
Permit fees: $500-$3,000+. Design and engineering: $2,000-$15,000 for larger projects. Temporary accommodation if required. Furniture storage. Post-renovation cleaning and landscaping repair. HST on all contractor labour and materials (renovation work is not HST-exempt).
Where Ontario Renovations Overspend
Change orders after work begins — the largest single driver. Hidden conditions found during demolition. Material price changes between quote and order. Scope creep from mid-project homeowner additions.
Payment Schedule Rules
Maximum 10% deposit upfront. Milestone-based payments tied to completed work stages. Retain 10% holdback until 45-day lien period expires after substantial completion (Ontario Construction Act). Never pay ahead of completed stages.
Get Comparable Quotes
3 quotes minimum, all from the same written scope. The lowest quote is not always best value — compare scope inclusions, allowances, and contractor qualifications.
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