Choosing the wrong renovation contractor is one of the most expensive mistakes a GTA homeowner can make. Incomplete projects, unpermitted work, and disappearing contractors are real problems in the Toronto renovation market. Here's how to protect yourself.
Step 1 — Verify Licenses and Insurance
HCRA Registration
In Ontario, any contractor who builds or sells new homes in Ontario must be registered with the Home Construction Regulatory Authority (HCRA). For renovations, always verify HCRA registration as a mark of professionalism and accountability. You can verify any contractor at hcraontario.ca.
WSIB Clearance
Request a current WSIB clearance certificate. This confirms the contractor has workers' compensation coverage — if a worker is injured on your property without it, you could be liable.
Liability Insurance
Minimum $2 million liability insurance is standard. Ask for a certificate of insurance naming you as an additional insured for the project duration.
Tarion Approval (for new construction)
If the contractor is building a new home or major addition, they must be Tarion-approved. Dotch Construction is Tarion Approved for new home construction across GTA.
Step 2 — Red Flags to Watch For
🚩 Cash only, no contract — A professional contractor always provides a written contract. Cash-only deals with no paper trail are a major warning sign.
🚩 Quote 30%+ below others — If one quote is dramatically lower, the contractor is either cutting corners, using unqualified workers, or planning to add change orders later.
🚩 No permit mentioned — Any contractor who says "we don't need a permit" for structural, electrical, or plumbing work is operating illegally. Walk away.
🚩 Large upfront deposit — Reputable contractors typically ask for 10–20% upfront. Anyone asking for 50%+ before work starts is a red flag.
🚩 No physical address or reviews — Google the company name. No reviews, no website, no physical address — don't hire them.
Step 3 — Questions to Ask Before Hiring
- Are you HCRA registered? (Required for new home builders; a strong credibility signal for renovation contractors)
- Can you provide a WSIB clearance certificate and proof of liability insurance?
- Will you pull all required permits for this project?
- Who are your subcontractors — are they licensed and insured?
- What is the payment schedule tied to project milestones?
- Can you provide 3 references from similar projects in the past 12 months?
- What is your warranty on labour and materials?
- Who is my point of contact during the project?
Step 4 — What a Good Contract Includes
- Detailed scope of work with specific materials and finishes listed
- Start date and estimated completion date
- Payment schedule tied to milestones (not calendar dates)
- Change order process — how changes are priced and approved
- Permit responsibilities clearly stated
- Cleanup and site protection terms
- Warranty terms on labour and materials
- Dispute resolution process
✅ Pre-Hire Checklist
- HCRA registration verified at hcraontario.ca
- Current WSIB clearance certificate received
- Liability insurance certificate (min. $2M) received
- 3+ Google / Houzz / HomeStars reviews verified
- Written contract with detailed scope of work signed
- Payment schedule tied to project milestones agreed
- Permit responsibility confirmed in writing
Ready to Find the Right Contractor?
Use the checklist above when interviewing any contractor. The right contractor will have no problem providing all of this documentation — and will be happy to walk you through their process.
Dotch Construction has been serving GTA homeowners since 1994. 30+ years, 500+ projects, WSIB certified, fully insured, all permits handled. Call 416-716-4090 for a free site visit — no obligation.