With lumber prices climbing, tariffs adding budget uncertainty, and spring booking season in full swing, 2026 is a year when more GTA homeowners than ever are getting quotes — and signing contracts they don’t fully understand.
After 50+ years in the trade, I can tell you: most disputes, delays, and blown budgets aren’t really about the quality of the work. They start before the first nail goes in — with what wasn’t clearly agreed on up front.
Here’s a practical checklist for any GTA homeowner signing a renovation contract this spring.
1. Is the contractor licensed and insured?
Ontario doesn’t require a general contractor licence, but specific trades do. Electricians, plumbers, and HVAC techs must all be licensed. Any reputable contractor should carry:
- General liability insurance (minimum $2M is industry standard)
- WSIB coverage for their workers
Ask to see both certificates before work starts. A legitimate contractor hands these over without hesitation. If they stall, that’s your answer.
2. Is the full scope of work in writing?
A verbal agreement is worth nothing when a disagreement starts. The contract should spell out exactly what work is included, which materials will be used, and where the work begins and ends.
In 2026, with material costs shifting — lumber is up roughly 18% year over year on some species, and the January carbon tax increase is pushing operational costs higher across the board — you want to know precisely what you’re getting for the price.
3. What’s the payment schedule?
A reputable contractor does not ask for full payment up front. Standard GTA practice:
- 10% deposit to hold your spot
- Milestone payments tied to completed stages — not calendar dates
- 10% holdback held until the work is done, punch list signed off, and deficiencies corrected
If anyone is asking for 40 or 50 percent up front, walk away.
4. What permits will be pulled — and in whose name?
Permits protect you. Work done without permits becomes your problem at resale, and may not be covered by your home insurance if there’s a structural failure.
In Ontario, permits should be pulled in the contractor’s name. If a contractor says “we don’t need a permit” for structural work, electrical upgrades, or anything above grade — verify that independently before agreeing.
5. What are the warranty terms?
Ontario’s new home warranty rules (Tarion) cover new home builds — but for renovations, warranty terms are entirely between you and the contractor. Ask directly: how long is the workmanship warranted, and what’s the process if something fails in year two? Get it in writing. “We stand behind our work” is not a warranty.
At LF Builders, we’ve answered these questions the same way for over 50 years — clearly, in writing, upfront. We’re happy to talk through any of them.
If you’ve signed a reno contract recently and ran into issues — or if you have questions you’re not sure how to ask a contractor — drop them below. This is what this community is for.
And if you’re new here, the Most Commonly Asked Questions thread is a good starting point.
More from LF Builders
- Renovation planning guides and seasonal cost updates: blog.lfbuilders.ca
- Samm Simon is running 251 km for cancer research — sammsimon.ca