Choosing a contractor is the decision that most affects cost, schedule and risk on a commercial project. Price matters, but in Ontario there are several legal and practical checks that protect you long after the contract is signed.
1. A current WSIB clearance certificate
In Ontario, a business that hires a contractor can be held liable for that contractor's unpaid WSIB premiums, up to the labour portion of the contract. A valid clearance certificate protects you for the period it covers. Ask for one before work starts, and again before each payment on longer projects.
2. Commercial general liability insurance
Ask for a certificate of insurance showing commercial general liability coverage, and confirm the limits your lease, landlord or lender requires. Many owners and landlords ask to be named as an additional insured.
3. A written contract with a clear scope
A good contract defines the scope, price, schedule, payment terms, change-order process and warranty. Standard CCDC contracts are widely used in Canada, for example CCDC 2 for stipulated-price work and the CCDC 5 forms for construction management.
4. Holdback, prompt payment and adjudication
Ontario's Construction Act requires owners to retain a 10% statutory holdback. Its prompt payment rules require an owner to pay a proper invoice within 28 days, and a contractor to pay its subcontractors within 7 days of being paid. Payment disputes can go to adjudication. The Act has been amended in recent years, so confirm current requirements with your lawyer.
5. Who obtains the permits
Agree in writing who applies for permits and approvals, who pays the fees, and who books inspections. A contractor who manages permits for you takes a major source of delay off your plate.
6. A real safety program
Under Ontario's Occupational Health and Safety Act, the constructor is responsible for safety on the project. Ask how site safety is planned and supervised, and how trade partners are vetted.
7. Relevant experience and references
Ask about projects similar to yours in type, size and complexity, and speak to past clients about communication, cost control and how problems were handled.
8. How you will be kept informed
Agree on the reporting rhythm before you start: weekly meetings, written progress reports, and how quickly calls and emails are answered.
9. Bonding, where it applies
Public sector projects and some private ones require bid bonds, performance bonds and labour and material payment bonds. If your project needs them, confirm the contractor can provide them.
10. Closeout and warranty
Ask what you will receive at handover, such as as-built drawings, manuals, warranties and training, and how warranty issues are handled after you move in.
This article is general information, not legal or professional advice. Requirements change, so confirm details with the relevant authority or your advisors.
