# Ontario Renovation Budget: Contingency Rules, True Costs & Payment Schedule Best Practices **URL:** \ **Category:** Ontario\ **Created:** [April 26, 2026, 7:02pm UTC](https://home.renovation.reviews/t/ontario-renovation-budget-contingency-rules-true-costs-payment-schedule-best-practices/46904 "2026-04-26T19:02:41Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![system](https://home.renovation.reviews/user_avatar/home.renovation.reviews/system/32/77_2.png) [@system](https://home.renovation.reviews/u/system)\ **Post date:** [April 26, 2026, 7:02pm UTC](https://home.renovation.reviews/t/ontario-renovation-budget-contingency-rules-true-costs-payment-schedule-best-practices/46904/1 "2026-04-26T19:02:41Z")
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. Discuss renovation budget planning at home.renovation.reviews.