Ask a Lawyer

My husband and I are planning to hire a contractor to renovate our home. Are there any regulations that we should be concerned about?

Ted Dreyer practices Construction Law at Madorin, Snyder LLP. He says there are three pieces of legislation that a homeowner should keep in mind when they hire a contractor to work on their home.

The Building Code Act regulates building safety in Ontario. The Act requires an owner to obtain a building permit before they materially alter or repair any building. Only buildings that occupy an area of less than 10 square metres and have no plumbing are exempt from the Act. Contact the staff at your local municipality to find out if you need a permit for the work that you have in mind.

The Workplace Safety Insurance Act creates a mandatory insurance scheme for workplace injuries. The Act requires an owner to ensure that any contractor they hire is up to date with his or her premiums. If the contractor you hire has one or more employees, and is not registered or not making its payments to the Workplace Safety Insurance Board, then you could be liable for insurance premiums owing in connection with the work on your home. You can contact the Board's Kitchener office at 1-800-265-2570 to determine whether the contractor you intend to hire is compliant.

The Construction Lien Act regulates payments made pursuant to construction contracts. The Act requires an owner to hold back 10% of any interim or final payments due to the contractor. The obligation to maintain a hold back applies regardless of the terms of the contract. If you do not maintain a hold back and the contractor neglects to pay his workers or suppliers, then you may be compelled to pay off the contractor's debts to his workers or suppliers for up to 10% of the value of the contract with the contractor. You should not pay the final 10% due to the contractor until 45 days after the contract work is complete. On a renovation of substantial value, you should confirm that no liens have been registered against title to your home before you release the hold back.