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Why You Need a Contract

There are many contractors in Ontario where all you might get is a handshake to seal the deal on your home improvement project. But all it takes is one bad experience to make you wish there had been a written contract for the job. An official signed contract protects all parties and can help eliminate any possible confusion about what’s involved in the scope of the project.

What Your Contract Should Include

The complexity of your contract is normally determined by the size of your project. If you are hiring roofers, painters, or a landscaping company, you may only need a simple contract consisting of one or two pages. However, if you’re planning a large job such as a finished basement renovation or a kitchen remodel, you should have a larger contract that covers the scope of work in depth. In both cases, the following items should be covered within the contract:

• Blueprints or project drawings with the latest revision date
• Site plans and permits if the project is a separate building or home addition
• An in-depth description of the scope of work including a list of any special fixtures or appliances agreed upon. This description can be the original estimate for the project if it’s detailed enough and all parties agree to include it as an addendum
• Terms of payment and a payment schedule
• A completion schedule
• Warranty information

Where To Find Contract Templates

One of the easiest places to access contract documents for your project is the Canada Mortgage and Housing Corporation at the Government of Canada website.

CMHC Sample Home Renovation Contract

Once the document is completed and all signatures have been added you should have a legal document you can feel confident knowing it will protect all parties. You might want to read all the small print on the documents and if you feel a paragraph doesn’t apply to your situation, crossing it out and getting all parties to initial the deletion usually suffices. If you have a larger project such as a home addition or kitchen remodel, it wouldn’t hurt to have your solicitor review the documents before signing.

A few books you may find helpful for setting up your contract:

• Ready, Set, Build: A Consumers’ Guide to Home Improvement Planning & Contracts by Steve Gonzalez
• The Homeowners Guide to Managing a Renovation: Tough-as-Nails Tactics for Getting the Most for your Money by Susan E. Solakian

Contracts can seem much more complicated than they actually are and if you have a problem while your project is underway or after it’s complete, you’ll be extremely glad you took the time to do one.