How to Hire a Site Contractor in Ontario

Who Needs a Licence and Who Doesn’t

Here is something that surprises people: in Ontario anyone with an excavator and a trailer can call themselves an excavating contractor. There is no provincial licence for digging. That is why the paperwork below matters so much.

Insurance and WSIB: Check, Don’t Trust

Insurance. Ask for a certificate of insurance, not a verbal “yes, we’re covered.” It should name the insurer, the policy dates and the liability limit. We carry $2,000,000. Some work needs more: Oro-Medonte asks for at least $5,000,000 general liability insurance for entrance work, so check what your town requires.

WSIB. If a worker gets hurt on your property, you want the contractor’s workplace insurance to cover it. The WSIB lets you look up clearances online free, with no login, and a clearance is good for up to 90 days. For repairs or renovations to the home you live in, the WSIB says a homeowner does not need a clearance. We still suggest looking one up. It takes two minutes and tells you the business is registered.

Contract, Deposit and Holdback Rules

1. Written contract over $50. The province says any home renovation contract over $50 must be in writing, with a description of the work and materials, total cost, payment schedule and work schedule.
2. Deposit no more than 10%. The same page recommends keeping down payments to no more than 10% and never paying in full before the work is done.
3. Cooling-off period. If you sign at your home, you have 10 calendar days to cancel for any reason.
4. Holdback 10%. Under the Construction Act the owner holds back 10% of each payment. It protects you if the contractor does not pay a supplier or sub, because they can lien your property even if you paid the contractor.
5. Prompt payment (2026 rules). Since January 1, 2026, you have 7 days to dispute a proper invoice in writing, and 28 days to pay it. Do not let invoices sit in a drawer. This homeowner guide explains the changes.

For a big job, the province suggests having a lawyer look at the contract before you sign. That is cheap insurance on a five-figure site package.

What a Site Work Quote Should List

Two quotes can be thousands of dollars apart and both be “honest.” The difference is what each one left out. A good quote names these items, either as included, excluded or priced as an allowance.

Also ask how warranty works and what it excludes. For example, sod is not warranted by us, and damage from bad weather and natural disasters is not covered. A contractor who explains exclusions up front is easier to deal with than one who finds them later.

Red Flags

• Door-to-door offers. “We’re paving down the road and have leftover material” is a classic. The province warns about pressure to sign right away to get a special price.
• Cash only, no paperwork. No contract, no receipt, no HST number. The province calls missing paperwork a warning sign.
• A big deposit to “buy materials.” Over 10% needs a very good reason.
• No insurance certificate. If they cannot email one today, they probably do not have one.
• “Permits are a waste of time.” In Tiny, building without a permit can double your permit fee. A septic without a permit can haunt a sale.
• A one-line quote. “Septic: $28,000” with nothing else means everything else is an extra.

Questions to Ask Before You Sign

1. Can you email your certificate of insurance and WSIB clearance?
2. Who on your crew holds the BCIN for the septic install?
3. Do you own your machines, or are you renting or subbing them out?
4. What happens if you hit rock or ground water?
5. Is excess soil hauled away, and where does it go?
6. Who applies for permits and books locates?
7. What is your payment schedule, and does it allow the 10% holdback?
8. What is excluded from your warranty?
9. Can I speak to three people you have done similar work for?
10. When can you start, and what happens if weather or half-load season delays it?

The province suggests getting at least three references and checking them, even when the contractor came recommended.

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