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Clientele : Owners Subject : Hiring a Contractor for Renovations Print date : February 7th, 2012

Owners
Hiring a Contractor for Renovations
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Renovating your home is a major investment. Taking some basic precautions when choosing and dealing with a contractor can save you a lot of problems down the road.

In this Infosheet, Éducaloi explains the importance of getting an estimate before work begins and drawing up a proper contract.
Don’t take this decision lightly! A home renovation or construction project can be expensive. That’s why it is important to choose a contractor who will carry out the work to your full satisfaction.

Start by asking people you know who have worked with a contractor. They will be able to tell you about their experiences and perhaps make a good recommendation.

Before making your choice, get a few estimates and compare them in terms of the quality of materials, services offered, time frame, cost, guarantees, etc. You can even go see some of their previous projects and contact past customers. Finally, take the time to verify that the contractor you are considering is licensed.

This last point is particularly important. All contractors in Quebec must have a building contractor’s licence issued by the Régie du bâtiment du Québec. Ask the contract to show you this licence. You can also check the Registre des détenteurs de licence de la Régie du bâtiment du Québec. (In French only.) Be careful to correctly write the name you are looking for!

Before issuing a licence, the Régie du bâtiment makes contractors pass exams to test their knowledge and abilities. Also, the licence proves that the contractor is financially stable (it shows that he has more assets than debts). To get a licence, a contractor must usually post a security deposit of $10,000 if he is a specialized contractor, or $20,000 if he is a general contractor. This deposit guarantees that the contractor’s clients will be compensated if he fails to do the work, fails to complete it, or completes it but with serious defects.

To learn more about security deposits, consult the website of the Régie du bâtiment. (In French only.)
Contactors are not obliged to gives estimates, but for your own protection, it is better to get one. An estimate should include the cost of the work and a detailed list of materials the contractor plans to use.

The estimate can be in the form of a global price, or an hourly rate multiplied by the number of hours needed to do the work.

A detailed estimate can prevent a lot of misunderstandings!
Once you have chosen a contractor, getting a written contract can help avoid problems. The Office de la protection du consommateur has recommendations about what to put in these contracts.To learn more, consult the Office’s website.

Some people in the home renovation industry are classified as “itinerant merchants” (door-to-door salespeople). Itinerant merchants include merchants who sell doors, windows, roofs, insulation and exterior cladding. A contractor who sells you any of these products is considered to be an itinerant merchant, even if you were the one who actively sought out his services. The rules on itinerant merchants apply when you sign a contract with this type of contractor.

For more information, see the Infosheet entitled Itinerant Merchants (Door-to-Door Salespeople).
Most contractors insist on a deposit. By negotiating the smallest deposit possible, you are protecting yourself in case the contractor goes bankrupt.

As for payment for the work, you can agree to:

  • pay the contractor in instalments as the work progresses
  • withhold an amount that will be paid only when all the work under the contract is finished
You should know that a contractor has a “legal hypothec” (mortgage) on the building that he renovated at the request of the building’s owner.

Any workers involved in the project have the same right.

Also, all the sub-contractors, suppliers of materials, architects and engineers who either worked on the project or supplied materials to the worksite have a hypothec on the building as well. However, they must notify you of what they were asked to do and of the cost of their services.

If you pay your contractor in full, but he does not pay his own suppliers, the suppliers have the right to put a legal hypothec on your building. But there are several ways to avoid this situation:
  • The contractor can provide a guarantee that an insurer will cover all claims if the contractor doesn’t.

  • You can pay by writing out cheques in the names of both the contractor and any supplier who has notified you of the value of his work or supplies. For example, let’s say you hire a contractor to renovate your kitchen for $20,000. He buys $6,000 worth of cabinets from a supplier and the supplier informs you of this purchase. When writing out your cheques, it would be a good idea to make one for $6,000 payable to both the contractor and the supplier. This cheque could only be cashed with both people’s consent, which would guarantee that the supplier would get paid.

  • You can also negotiate to make your final payment more than a month after the work is completed. The law says that these hypothecs expire automatically if you haven’t received notice of a claim within 30 days of the completion of the work. Withholding part of the payment is especially useful for legal hypothecs held by workers, because they don’t have to inform you about the work they did.
First, contact the contractor and try to reach an agreement. If this approach does not work, you can send a demand letter by registered mail – this is a letter describing the nature of the complaint and setting a time limit for the contractor to correct the situation. For more information, see the Infosheet entitled The demand letter.

If the contractor fails to resolve the situation by the date set in your demand letter, you can file a complaint at one of the offices of the Régie du bâtiment. You can get the complaint form at one of the Régie's regional offices or on its website (French only - see "Plainte"). Attach a copy of the demand letter that you sent to the contractor, and proof that you hired the contractor. For example, you can include a copy of the signed contract or the contractor’s bill.

The Régie will review your complaint and try to settle the matter between you and the contractor. If the contractor refuses to cooperate, the complaint might be taken into consideration when the contractor tries to renew his licence.

Filing a complaint with the Régie does not replace your other legal rights. You can still file an action in Small Claims Court if your claim is $ 7,000 or less, or in another court if your claim is above that amount.

For more information, see the Small Claims Court section of Éducaloi’s website.
Check with your municipality. If you do a renovation or construction project without the necessary permits, you could be fined.
Important
These questions and answers are for general informational purposes only. If you have a specific problem, consult a legal professional.
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Éducaloi does not provide any legal advice or counseling. The information contained in its website constitutes a general source of information and does not in any way replace the services of a lawyer or notary.
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