Choosing the wrong renovation contractor is how Toronto homeowners lose deposits, blow budgets, and end up in court. Choosing the right one is mostly about verifying a short list of things before you sign — and walking away the moment a contractor resists. Here's the 2026 checklist we'd want you to use, even on us.
The credential checklist
| Check | What to verify | How |
|---|---|---|
| HCRA licence | Required for new homes & major additions in Ontario | hcraontario.ca — search by name or licence # |
| WSIB coverage | Active clearance certificate for the crew | Ask for it; verify on the WSIB site |
| Liability insurance | $2M minimum, $5M for structural work | Certificate naming you as additional insured |
| Tarion warranty | Applies to new builds / major additions | Confirm enrolment |
| Written contract | Line-by-line scope, fixed price, milestones | Legally required for work over $50 |
A note on licensing: Ontario requires HCRA registration for anyone building new homes or major additions (verify any builder in 60 seconds at hcraontario.ca). For renovations, additions, and repairs to existing homes there is no single provincial "general contractor licence" — which is exactly why the other checks below matter so much.
Red flags — walk away if you see these
- No fixed price, or cost-plus with no ceiling.
- Deposits over 10–15% up front. Never pay for a job that hasn't started.
- "Cash discount" or reluctance to give a written contract. Anything over $50 legally requires one.
- "This price is only good today" or "we can start tomorrow." High-pressure tactics exist to stop you doing due diligence. Good contractors have scheduled work.
- No permit-responsibility clause — who pulls the permits should be in writing.
- Hesitation about WSIB or insurance. These are non-negotiable in Ontario. If they make excuses, walk away.
- No completion date and no milestone payment schedule.
Protect yourself in the contract
Demand a written, line-by-line contract with a fixed price for a defined scope. Tie payments to completed milestones, not the calendar — so the contractor is accountable at every stage and you're never far ahead of the work. Keep the deposit to 10% or less, and make sure the contract names who's responsible for permits, sets a completion date, and spells out how change orders are priced and approved.
Check references — and actually call them
Ask for at least three references from recent projects like yours, and call them. Ask the questions that matter: Did the project stay on budget and schedule? How was communication when problems came up? Would you hire them again? A quality contractor is happy to connect you; hesitation here is its own answer. Photos of finished work are nice, but a real conversation with a past client tells you how the process actually felt.
Why fixed-price and transparency matter
The single best protection against a renovation going sideways is a contractor who prices the whole scope up front and documents every change in writing before doing it. That's how you avoid the "surprise invoice" that turns a $200,000 renovation into a $280,000 one. At Nexon Build every project is a fixed-scope, fixed-price contract, tracked in Buildertrend so you can see the schedule, selections, and budget from any device — because the homeowners who feel safest are the ones who can see exactly where their money and their build stand.
FAQ
Do renovation contractors need a licence in Ontario? Builders of new homes and major additions must be HCRA-registered (verify at hcraontario.ca). For renovations to existing homes there's no single provincial contractor licence — so verify WSIB, insurance, references, and a written contract instead.
How much deposit should I pay a contractor? No more than 10–15% up front, with the rest tied to completed milestones.
What insurance should a contractor carry? At least $2 million in liability ($5 million for structural work) plus active WSIB coverage — and the certificate should name you as an additional insured.
What's the biggest red flag? High-pressure "sign today" tactics combined with no fixed price and a large upfront deposit. Real contractors have scheduled work and give you time to do your homework.
Doing your homework on a builder? Good — hold us to the same standard. See how we work as your general contractor, compare figures in the Toronto renovation cost guide, or get a free estimate.