Estimates, quotes and contracts
What a home renovation contract should include in Canada (and your cancellation rights)
The clauses a Canadian renovation contract needs, Ontario Consumer Protection Act rules on written agreements and estimates, door-to-door cooling-off periods by province and Quebec specifics.
A renovation contract should state who the parties are, exactly what work and materials are included and excluded, the price and taxes, how changes are priced and approved, the payment schedule (including any lien-act holdback), the schedule, permits, warranty, insurance, clean-up, and how disputes and termination are handled. Provincial consumer protection laws add rules of their own. In Ontario, the Consumer Protection Act, 2002 requires a written agreement for any consumer contract worth more than $50 for future services, and a supplier generally cannot charge more than 10% above an estimate unless you agree to changed work. If you sign a contract at your home (a direct or door-to-door sale), Ontario, British Columbia, Alberta and Quebec all give a 10-day cancellation period, with longer rights in some cases.
This guide belongs to the estimating method. Read it with comparing renovation quotes and deposits, holdbacks and payment schedules. This is general information, not legal advice.
The clauses to look for
| Clause | What it should say |
|---|---|
| Parties | Contractor's full legal name, address, phone, email; GST/HST (and QST) number; licence number where one is required |
| Scope of work | Room-by-room description, drawings or specifications attached, materials and products by name or allowance |
| Exclusions | What is not included, in writing |
| Price | Total before tax, each tax separately; fixed, cost-plus or time and materials |
| Allowances | Dollar amounts and what they include (delivery, installation, tax) |
| Changes | Written change orders signed before extra work; how extras and credits are priced |
| Unknown conditions | Unit prices or a process for hidden damage |
| Payment schedule | Deposit, stage payments tied to completed work, holdback where the lien act requires it, final payment after deficiencies |
| Schedule | Start date, estimated completion, what happens on delay |
| Permits and inspections | Who applies, who pays, and that work will pass inspection |
| Subcontractors | Who they are, and that the contractor pays them |
| Insurance and workers' compensation | Liability insurance, workers' compensation status, who insures the site |
| Warranty | Length and scope of the workmanship warranty; manufacturer warranties passed on |
| Site rules | Working hours, protection, dust control, clean-up, waste disposal |
| Termination and disputes | Grounds for ending the contract, notice, payment for work done, dispute steps |
The Ontario government's guide for home renovation businesses lists similar contents, including warranty details, a payment schedule, subcontractors and who handles site clean-up.
Ontario: Consumer Protection Act, 2002
Key points for homeowners, from the Ontario government's guidance:
- Written agreement over $50. Renovation contracts above $50 must be in writing, with a copy given to you.
- Estimates. If the contract includes an estimate, the supplier generally cannot charge more than 10% above it, unless you agree to additional or different work and the contract is amended.
- Cooling-off for contracts signed at home. You have 10 days after receiving your written copy to cancel without reason, and the business must refund you, including any deposit, within 15 days of your cancellation notice.
- One year in some cases. If you never received a contract that meets the requirements, you can cancel most contracts within one year.
- Door-to-door restrictions. Ontario bans entering into certain door-to-door contracts for specific household products (such as furnaces, air conditioners and water heaters) unless you initiated contact. This mostly affects heating and water equipment, not general renovations.
A newer Consumer Protection Act, 2023 has been passed but, as of October 2026, Ontario's e-Laws shows it is not yet in force; the 2002 Act still applies. Check e-Laws if you are reading this later.
Other provinces
| Province | Rule for contracts signed at your home (summary) | Where to check |
|---|---|---|
| British Columbia | Direct sales contract may be cancelled within 10 days after you receive a copy (Business Practices and Consumer Protection Act, s. 21); longer in some cases | Consumer Protection BC; BC Laws |
| Alberta | Direct sales contract may be cancelled within 10 days of receiving the copy; up to one year in listed cases (Consumer Protection Act) | Alberta consumer protection pages |
| Quebec | Contracts with itinerant merchants (including contractors who solicit or sign at your home) may be cancelled within 10 days after you receive a copy, up to one year in listed cases (Consumer Protection Act) | Office de la protection du consommateur |
| Other provinces and territories | Consumer protection acts generally include direct sales rules with cancellation periods | Your provincial consumer affairs office |
The cooling-off right usually does not apply when you sign at the contractor's office, or in other exempt cases; check the details for your province.
Quebec specifics
In Quebec, renovation contractors generally need an RBQ licence, and the contract should show the licence number. The Civil Code of Québec governs the contract for services (contrat d'entreprise), including the contractor's warranty against poor workmanship and loss of the work. Unpaid subcontractors and suppliers may have a legal hypothec on your property. See deposits, holdbacks and payment schedules and renovation warranties.
Before you sign
- Read the whole document, including the fine print on the back or in attachments.
- Make sure every verbal promise is in writing.
- Check the contractor's legal name against the licence register where relevant, and against the GST/HST Registry.
- Confirm that the payment schedule matches the stages of work and leaves the holdback.
- Keep a signed copy, with the date you received it.
Worked example: estimate limit in Ontario
Illustrative. A contractor's written estimate for drywall repair and painting is $8,000. With no change agreed, the most they can generally charge under the 10% rule is $8,000 × 1.10 = $8,800 before tax. If you ask for an extra room to be painted and sign a contract change, the new work can be priced on top.
FAQ
Can I cancel a renovation contract I signed at the contractor's showroom?
Usually not under the door-to-door cooling-off rules, which apply to contracts signed at your home or away from the business's premises. Other rights may apply if the contract does not meet legal requirements; ask your consumer protection office.
The contractor started work during my cooling-off period. Can I still cancel?
In some provinces, cancellation may still be possible, but you may have to deal with work already done. Get advice from your provincial consumer protection office quickly.
Is an email exchange a written contract?
It may be, but a single signed document with the required content is much easier to rely on. Ask for one.
Sources
- Consumer Protection Ontario — renovation contracts, estimates, cooling-off periods
- Ontario e-Laws — Consumer Protection Act, 2002 and 2023
- Consumer Protection BC — direct sales and contracts in BC
- BC Laws — Business Practices and Consumer Protection Act
- Office de la protection du consommateur — itinerant merchants and renovation contracts
- Government of Alberta — Consumer Protection Act and direct sales
