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 quoted.
3. Fixed price or cost-plus — and do you understand the difference?
These two contract structures put very different risks on you as the homeowner:
- Fixed price: you pay an agreed amount. If materials cost more, that’s the contractor’s problem.
- Cost-plus: you pay the actual cost of materials plus a markup percentage. If lumber spikes mid-project, your bill goes up.
Neither is inherently wrong. But in a volatile material market, some GTA contractors are moving toward cost-plus agreements. If that’s what you’re signing, make sure there’s a written spending cap.
4. What’s the payment schedule?
In Ontario, a reasonable deposit is typically 10-25% upfront, with progress payments tied to completed milestones — not calendar dates. If a contractor asks for 50% or more before work begins, that’s a red flag.
Get the payment schedule written into the contract. Don’t pay a lump sum in advance.
5. How are change orders handled?
Change orders happen on almost every renovation. What matters is whether there’s a clear process: does the contractor document the change and cost in writing before proceeding, and do both parties sign off before any extra work happens? Without this in writing, you can end up with a bill for work you didn’t explicitly approve.
6. Who is actually doing the work?
In the GTA, subcontracting is standard and not inherently a problem. But you should know who the primary subs are, whether they carry their own liability insurance, and whether the contractor you hired will actually be on site.
7. What does the warranty cover?
Ontario’s Tarion warranty covers 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.