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Questions to Ask Before Signing a Construction Contract
Before you sign
30 builder questions
Ontario contracts
30 Questions to Ask Before Signing a Construction Contract in Ontario
Do not ask only, “What is the price?” Ask what the price includes, what can change it, when payments are due, how delays are handled and what happens if the builder or homeowner defaults. A useful answer must be written into the contract—not left in a sales conversation.
30Questions before signing
8Contract categories
2Answers shown for each question
1Rule: put it in writing
Do not accept “we will work that out later.”
Later usually means after the deposit is paid, the permit is issued or the work has started—when changing builders is expensive.
Have the builder’s answers checked against the actual contract
Upload the contract, quotation, allowance schedule, exclusions, drawings and payment schedule.
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Jump to the questions that matter
1. Builder and contract documents
2. Scope, exclusions and allowances
3. Price, deposits and payments
4. Changes and substitutions
5. Schedule and completion
6. Insurance, permits and site risk
7. Warranty and deficiencies
8. Default, termination and disputes
Use both columns. A “good answer” still needs to appear in the signed contract. A red-flag answer means stop and obtain clarification or independent review.
1. Builder and contract documents
1
What legal company is entering into this contract?
A useful answer contains: Full legal name, operating name, address, HST number, signing officer and the same company on invoices and insurance.
Do not sign yet when: The builder uses only a trade name, wants payment to another company or asks the owner to contract with an individual while another company performs the work.
2
Are you licensed to build this new home?
A useful answer contains: The HCRA-licensed legal entity, Ontario Builder Directory profile and Tarion enrolment process for an eligible new or contract home.
Do not sign yet when: The builder says HCRA or Tarion is optional, cannot be found in the directory or wants the owner to appear as an owner-builder without explaining the consequences.
Builders of new homes in Ontario must be licensed by HCRA. Search the Ontario Builder Directory.
3
Which drawings, specifications and quotations form part of the contract?
A useful answer contains: A document schedule naming every drawing, specification, engineering package, quotation and addendum by date and revision.
Do not sign yet when: The agreement says only “according to plans,” “as discussed” or “plans supplied by owner.”
4
Which document wins when two documents conflict?
A useful answer contains: A clear order of precedence covering the signed agreement, amendments, specifications, drawings, quotation and later revisions.
Do not sign yet when: The quotation, drawings and contract contradict each other and the builder says the site supervisor will decide.
2. Scope, exclusions and allowances
5
Exactly what work is included in the contract price?
A useful answer contains: Work broken down by site work, structure, envelope, mechanical, electrical, plumbing, interiors, exterior completion and closeout.
Do not sign yet when: The scope uses phrases such as “complete house,” “builder standard” or “all normal work” without measurable detail.
6
What is specifically excluded?
A useful answer contains: A signed exclusion list covering design, permits, utilities, well, septic, rock, dewatering, driveway, grading, landscaping, taxes and owner-supplied work.
Do not sign yet when: The builder says exclusions are “obvious,” buried in notes or will be priced after construction begins.
Compare the answer with What Is Included and Excluded in a Builder’s Estimate?
7
Which amounts are allowances, and what does each allowance include?
A useful answer contains: Quantity, product level, materials-only versus installed, supplier basis, delivery, waste, labour, HST and selection deadline.
Do not sign yet when: The allowance is only a round number with no quantity or product basis.
Use the full guide: Understanding Builder Allowances.
8
How are allowance overages and credits calculated?
A useful answer contains: Original allowance credit, actual cost, labour difference, related work, markup, HST and whether savings in one allowance can offset another.
Do not sign yet when: The contract charges markup on overages but gives no equivalent credit method for underruns.
9
What site conditions and quantities did you assume?
A useful answer contains: Soil and groundwater assumptions, excavation quantity, haul distance, rock treatment, imported material, unit rates and evidence required for extras.
Do not sign yet when: Every underground or concealed condition is “extra at builder’s cost plus markup” with no included quantity or rate.
3. Price, deposits and payments
10
Is this fixed-price, cost-plus, time-and-material or a hybrid?
A useful answer contains: One clearly defined pricing model for each part of the work, including the records and adjustment rules.
Do not sign yet when: The agreement is advertised as fixed-price but allows every supplier increase or estimating omission to be charged to the owner.
11
Under exactly what circumstances can the contract price increase?
A useful answer contains: Defined events, written notice, supporting documents, calculation, markup and owner approval where applicable.
Do not sign yet when: The builder can change the price “in its sole discretion” or for undefined market conditions.
12
What is the deposit for, and when is it refundable?
A useful answer contains: Amount, purpose, due date, refund conditions, ownership of ordered materials and applicable new-home deposit protection.
Do not sign yet when: The deposit is described only as “non-refundable,” paid to another entity or far ahead of any identified cost.
Ontario does not impose one universal deposit maximum for every construction contract. For renovations, Ontario recommends keeping the down payment to no more than 10%.
13
What must be completed before each progress payment is due?
A useful answer contains: Objective milestone, invoice detail, supporting documents, inspection rights, payment deadline and treatment of disputed amounts.
Do not sign yet when: Payments are tied to dates rather than work, or the schedule requires the owner to finance work far in advance.
14
Does the builder’s payment schedule match the lender’s draw schedule?
A useful answer contains: A cash-flow map showing deposits, invoices, owner equity, lender inspections, anticipated advances, holdback and timing buffer.
Do not sign yet when: The builder requires payment before the lender recognizes the milestone and nobody has calculated the cash gap.
15
How is the 10% statutory holdback shown and released?
A useful answer contains: Invoice treatment, holdback ledger, annual-release responsibility, lien review and separate deficiency rights.
Do not sign yet when: Holdback is omitted, called optional or retained indefinitely only because the owner is dissatisfied.
Ontario’s current Construction Act requires basic holdback and mandatory annual-release procedures where applicable.
The price section is where most future disputes are already hiding.
Upload My Documents
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4. Changes and substitutions
16
Who has authority to approve a change?
A useful answer contains: Named owner representative, builder representative and limits on instructions from family members, designers or people on site.
Do not sign yet when: Any verbal comment from anyone connected to the homeowner can become a chargeable change.
17
What information must appear in a change order?
A useful answer contains: Description, original credit, added product, labour, related work, markup, HST, schedule effect and signatures before work whenever practical.
Do not sign yet when: The owner receives only a one-line invoice after the changed work is complete.
18
What markup or administration fee applies to changes?
A useful answer contains: Percentage or fixed fee, cost base, labour treatment, credit treatment, subcontractor markup and HST calculation.
Do not sign yet when: The fee is omitted or the builder says the “standard markup” will be disclosed later.
There is no universal Ontario 20% or 25% change-order markup. The signed agreement controls.
19
Can the builder substitute products without approval?
A useful answer contains: Objective equivalency criteria, written notice, technical data, owner approval for visible or performance-critical products and credit rights.
Do not sign yet when: The builder alone decides what is “equal or better” without considering performance, appearance or warranty.
5. Schedule and completion
20
What has to happen before the construction schedule starts?
A useful answer contains: Permit, financing, drawings, site access, selections, utilities, deposits and other commencement conditions.
Do not sign yet when: The agreement promises a completion date but never states when the clock starts.
21
What events extend the completion date?
A useful answer contains: Defined delay events, notice deadline, records, mitigation duty and number of added days.
Do not sign yet when: Every delay for any reason excuses the builder indefinitely.
22
How often will I receive schedule and cost updates?
A useful answer contains: Regular written report showing progress, upcoming decisions, approved changes, revised contract total and completion forecast.
Do not sign yet when: The builder refuses written reporting and expects all decisions to happen through phone calls.
23
What remains unfinished at occupancy, substantial performance and final completion?
A useful answer contains: Separate definitions, payment conditions, document requirements, deficiency procedures and applicable Tarion possession milestone.
Do not sign yet when: “Completion” means whichever milestone lets the builder demand the largest payment first.
6. Insurance, permits and site risk
24
Who obtains the permit, approvals and consultant documents?
A useful answer contains: Responsibility for applications, fees, drawings, revisions, inspections, occupancy documents and consultant closeout.
Do not sign yet when: The builder says permits are included but the contract lists permit fees and design as owner responsibility.
25
What insurance applies during construction?
A useful answer contains: Commercial general liability, course-of-construction or builder’s risk, owner’s existing coverage, policy limits, deductibles and responsibility for tools and materials.
Do not sign yet when: The builder provides only an old certificate, names the wrong company or says the homeowner’s ordinary policy covers everything.
26
What WSIB clearance or exemption applies?
A useful answer contains: Current clearance where required, or a documented basis for a limited home-renovation exemption, plus contractor responsibility for subcontractor clearances.
Do not sign yet when: The agreement simply says “WSIB not required” without identifying the exemption or project type.
A resident hiring a contractor for qualifying exempt home-renovation work may not need a clearance. That does not automatically exempt the contractor’s subcontracting relationships.
7. Warranty and deficiencies
27
Which warranties apply, and when do they start?
A useful answer contains: Builder warranty, manufacturer warranties, statutory new-home warranty where applicable, start date, claim method and exclusions.
Do not sign yet when: The contract says all work is accepted at occupancy or the builder disclaims every warranty not written on a supplier invoice.
For eligible new homes, the builder provides the statutory warranty and Tarion backstops it. The applicable Warranty Information Sheet must be attached to the construction contract or purchase agreement.
28
How are deficiencies documented, corrected and paid for?
A useful answer contains: Inspection process, written deficiency list, correction dates, access, disputed-item process and treatment of final payment.
Do not sign yet when: The owner must make full final payment before any deficiency list is prepared or the builder alone decides whether work is defective.
8. Default, termination and disputes
29
What happens if either party defaults or the builder stops operating?
A useful answer contains: Material default, written notice, cure periods, emergency protection, suspension, termination, accounting, site turnover, documents, materials and replacement work.
Do not sign yet when: The builder can suspend immediately for any disputed amount while the owner has no meaningful remedy for abandonment, insolvency or serious defective work.
30
How will disputes be resolved, and who pays the cost?
A useful answer contains: Negotiation, mediation, Construction Act adjudication where available, court or arbitration, location, procedure, legal costs and urgent-relief rights.
Do not sign yet when: The owner waives statutory remedies, must use an expensive distant forum or indemnifies the builder for every dispute regardless of fault.
Ontario’s Construction Act states that an agreement is not binding to the extent it says the Act does not apply or its remedies are unavailable.
Copy-and-send version for the builder
Send these before the contract meeting and ask for the answers to be incorporated into the agreement.
1. Confirm the legal contracting company and signing authority.
2. List every drawing, specification and quotation by revision.
3. Provide complete inclusions, exclusions and assumptions.
4. Explain each allowance and its adjustment formula.
5. Identify every event that can increase the price.
6. Explain the deposit and progress-payment calculations.
7. Show statutory holdback separately.
8. Provide the change-order and substitution procedure.
9. Define start, completion, delay and occupancy milestones.
10. Provide insurance, WSIB, HCRA and Tarion evidence where applicable.
11. Explain deficiency, warranty and final-payment procedures.
12. Explain default, termination and dispute procedures.
Ontario-specific checks before signing
| Check | What to confirm | Why it matters |
|---|---|---|
| Consumer renovation contract | Written terms, itemized work, payment schedule, start and completion dates, cleanup and responsibility for sub-trades. | Ontario publishes specific consumer guidance for home renovations and repairs. |
| Written estimate | Ensure the written estimate is incorporated into the qualifying consumer contract. | The final price generally cannot exceed it by more than 10% unless the consumer agrees to a new price or work. |
| Direct agreement | Check whether a qualifying contract entered into in the consumer’s home has a 10-day cooling-off period. | Cooling-off rights depend on the transaction and circumstances. |
| New or contract home | HCRA licence, Tarion enrolment and current Warranty Information Sheet attached when signing. | New-home builders must be licensed, and eligible homes follow the statutory warranty framework. |
| Construction Act | Proper invoices, prompt payment where applicable, 10% holdback, annual release, liens, trusts and adjudication. | The parties cannot contract out of the Act. |
| WSIB | Current clearance where required or a documented home-renovation exemption. | The exemption is limited and does not erase downstream contractor obligations. |
The Consumer Protection Act, 2002 remains the current statute as of this review. The Consumer Protection Act, 2023 has been enacted but is not yet in force.
Contract Centre and related guides
Questions before signing FAQ
Should I send all 30 questions to the builder?
Yes, but group them by topic and ask the builder to answer in writing. A professional builder should already have most answers in the contract and schedules.
What if the builder says the contract is non-negotiable?
You can still ask questions and request amendments. “Non-negotiable” is a commercial position, not proof that the wording is fair or suitable for your project.
Can an email answer change the contract?
It may matter, but an entire-agreement or amendment clause can create a dispute about whether the email controls. Add important answers to the signed contract or a signed addendum.
Do I need a lawyer for a renovation contract?
Ontario recommends legal review for major renovation work. Legal review is especially important when the value is substantial or the contract includes guarantees, broad indemnities, liens, arbitration or termination clauses.
Can I rely on the builder’s estimate?
Only after identifying whether it is an estimate, quotation, budget or fixed contract price and incorporating the relevant document into the agreement. Ontario’s consumer 10% estimate rule depends on a written estimate being part of the qualifying contract.
Is the lowest-price contract usually the riskiest?
Not automatically. The risk is whether the low number omits scope, uses unrealistic allowances, transfers unknown conditions to the owner or requires payments before corresponding value is supplied.
Should I sign before the permit drawings are complete?
That can be done, but the contract must clearly state the design stage, assumptions, price status and how later drawing changes affect the price and schedule.
What documents should I upload for review?
Upload the main contract, quotation, inclusions, exclusions, allowances, payment schedule, specifications, drawing list, change-order form and any builder emails containing important promises.
Thirty good questions are useless when the answers never reach the contract
Upload the agreement, quotation, allowances, exclusions and payment schedule. Start with the Free Scan. The complete builder-reviewed Full Report is $99.99, and an independent Ontario construction lawyer can review legal issues from $499.99.
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ICFhome can review the plans, prepare a realistic ballpark range and build the complete home with scope, allowances and payment milestones established before construction begins.
Reviewed July 29, 2026. General educational information only. This page does not determine enforceability, replace independent legal advice or guarantee that a contract is safe.
