Hiring Tips · 8 min read · 2025-04-15
Hiring the wrong contractor can cost tens of thousands and months of delays. Learn the 7 most common mistakes GTA homeowners make — and how to avoid every one.
Every year, thousands of Toronto homeowners hire renovation contractors — and a significant percentage end up unhappy, over-budget, or dealing with incomplete work. The Ontario consumer protection office receives thousands of complaints about contractors annually.
Most of these problems are preventable. Here are the seven most costly mistakes and exactly how to avoid each one.
This is the single most dangerous mistake. If an uninsured contractor or their worker is injured on your property, you may be personally liable. If they damage your property, you have no recourse.
Every contractor should carry minimum $2 million in CGL insurance and be WSIB-registered. Ask for certificates and verify independently.
Getting multiple quotes is smart. But always choosing the cheapest is not. A bid significantly lower than others (20–30%+ less) usually means the contractor is cutting corners — cheaper materials, fewer workers, skipping prep, or not including permits and waste removal.
Compare quotes line-by-line. Ensure each contractor quotes on the same scope, same materials, same timeline. The middle bid often represents the best value.
Never pay more than 10–15% as an initial deposit. Your payment schedule should be tied to milestones — 10% at signing, 25% at demolition, 25% at rough-in, 25% at finishes, and 15% upon completion.
If a contractor demands 50% upfront, walk away. This is one of the most common tactics used by unreliable operators in the GTA.
A handshake agreement is not a contract. Your contract must include detailed scope of work, specific materials and brands, timeline, milestone-based payment schedule, warranty terms, change order process, and cancellation terms.
Ontario's Consumer Protection Act requires written contracts for home renovation projects over $50.
A professional contractor should provide at least three references from recent, similar projects. Call every reference. Ask about timeline adherence, budget accuracy, communication quality, workmanship, and whether they would hire them again.
Also check online reviews — look for patterns of repeated complaints, not isolated bad reviews.
The number one complaint homeowners have about contractors is communication. Before hiring, establish clear expectations: How often will you receive updates? Who is your primary contact? How will changes or issues be communicated?
If a contractor is difficult to reach during the quoting phase, they will be impossible to reach during the project.
Managing a renovation through texts, calls, and email chains creates chaos. Messages get lost, agreements are forgotten, and there is no clear record.
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