Free Ontario Home Construction Contract Template (2026)

Free download · Ontario

Free Ontario home construction contract template

A free starting-point contract for a custom home or major renovation — plus a plain-English guide to the clauses that protect you before you sign.

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Home Construction Contract (PDF)

Free template — download, review with your lawyer, and adapt to your project.

Download the PDF ↓
Read this first. This template is general information, not legal advice. Use it to understand what a good agreement covers — then have a qualified Ontario lawyer review the final contract before you or your builder sign.

What a good construction contract must cover

  • Scope & drawings: exactly what’s being built, referencing the stamped plans and specs.
  • Price basis: fixed-price or cost-plus — stated clearly, with what’s included and excluded.
  • Payment schedule: milestone draws tied to completed stages, not big upfront sums.
  • Allowances: realistic dollar figures for finishes (cabinets, flooring, fixtures).
  • Change orders: a written, priced, signed process before any extra work.
  • Holdback: the 10% statutory holdback under Ontario’s Construction Act.
  • Warranty & Tarion: the new-home warranty and enrolment for a contract-built home.
  • Insurance & dates: builder’s risk and liability coverage, plus start and completion dates.

Read the contract

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Fixed-price vs cost-plus — and the red flags

Fixed-price gives you certainty and puts overrun risk on the builder; cost-plus is transparent but you carry the overruns. Either can work with the right builder. Walk away from: large payments before work, vague allowances, no fixed schedule, verbal-only changes, no warranty, or a builder who isn’t HCRA-licensed. Learn how to vet one in our guide to finding and vetting a builder.

Your next step

Before you sign anything

Understand the full build, the costs and your protections first.

Get a Ballpark Estimate →Custom Home Guide →Vet Your Builder →Construction Financing →

Construction contract FAQ

Is this home construction contract template free?
Yes — you can download and use it free as a starting point for a custom-home or renovation agreement in Ontario. Have a lawyer review the final version before you sign.
What should a home construction contract include?
A clear scope and drawings, a fixed price or cost-plus basis, a milestone payment schedule, allowances, a written change-order process, the Construction Act holdback, warranty terms, insurance, and start and completion dates.
Fixed-price or cost-plus — which is better?
Fixed-price gives you price certainty and puts overrun risk on the builder; cost-plus is more transparent but you carry the overruns. Whichever you choose, get every change in writing.
What is a holdback?
Ontario’s Construction Act requires 10% of amounts payable to be held back as security for subcontractors and suppliers. Your contract and payment schedule should account for it.
What are the biggest red flags in a contract?
Large upfront payments before work, vague or lowball allowances, no fixed schedule, verbal-only change orders, no warranty or Tarion enrolment, and a builder who isn’t HCRA-licensed.
Does my builder have to be licensed in Ontario?
Yes — it is illegal to build or sell a new home in Ontario without an HCRA licence. Verify your builder in the Ontario Builder Directory before signing anything.
Is this legal advice?
No. This template and page are general information, not legal advice. Every project is different, so have a qualified Ontario lawyer review your contract before signing.