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Owners

Hiring a Contractor for Renovations

Renovating your home is a major investment. If you take some basic precautions when dealing with a contractor, you can save yourself a lot of hassle down the road.

In this Infosheet, Éducaloi explains the importance of getting an estimate before work begins and drawing up a proper contract with your contractor (entrepreneur).

How should I go about choosing a contractor?

Choosing a contractor is not a matter to be taken lightly! As you may already know, a home renovation or construction project can be costly. That’s why you should choose a contractor who will carry out the work to your full satisfaction.

Start by getting referrals from family and friends who have hired contractors in the past. Get estimates from a few of these contractors and compare them (the quality of material, services offered, time frame, overall cost, guarantees, etc.). Before choosing a contractor, you may want to check out some of his previous jobs, contact past customers to find out if they are satisfied with the work, and make sure the contractor 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  (http://www.rbq.gouv.qc.ca/dirEnglish/index.asp). Before committing to a contractor, always ask to see the licence.

Before issuing a licence, the Régie du bâtiment makes contractors pass an examination testing their knowledge and abilities. Moreover, a licence is a guarantee that the contractor is financially stable. To obtain a licence, a contractor must post a $ 10,000 security deposit used to compensate clients if the contractor is found guilty of fraud.

Should I ask for an estimate before the contractor begins work?

An estimate is not obligatory, but you should always get one for your own protection. An estimate should include the cost of the work to be executed as well as a detailed list of materials to be used.

Two types of estimate are commonly used. The first type is a “package deal,” where the contractor quotes a set price for the entire project. The other type is an hourly rate multiplied by the number of estimated hours required to complete the project.

Ask for the most detailed estimate possible. If work that was not anticipated is required during the course of the renovation, ask the contractor to add it to the estimate. This will avoid any surprises when you receive your bill!

What should be included in the contract?

Once you have chosen a contractor, insist upon a written and detailed contract. A contract should include:

• your name and address;
  
• the contractor’s name and address;
  
• the contractor’s licence and permit numbers;
  
• the scheduled start date;
  
• the scheduled termination date;
  
• a warranty;
  
• the contractor’s commitment to respect municipal by-laws and standards in the Building Code;
  
• the contractor’s liability insurance policy number as well as the name of the insurance company;
  
• a detailed description of the work to be carried out;
  
• the type and quantity of materials to be used (it is a good idea to attach a copy of the estimate to the contract);
  
• the total cost and terms of payment;
  
• a commitment to clean up when the job is done.

Some merchants in the home renovation industry are classified as “itinerant merchants” (door-to-door salesmen). Included in this classification are merchants who sell doors, windows, roof covering, insulation, or exterior finishes. A contractor who sells you any of these products is considered to be an itinerant merchant even if you actively sought out his services. The law on itinerant merchants applies when you conclude an agreement with this type of contractor. For more information, consult the Infosheet entitled Itinerant merchants.

For more information on this subject, consult the Infosheet entitled Itinerant merchants (Door-to-door salesmen)  (http://www.educaloi.qc.ca/en/loi/consumers/37/).

What about terms of payment?

Most contractors will insist upon a down payment. Negotiate the smallest deposit possible; this will minimize your losses if, in a worst-case scenario, the contractor goes bankrupt.

It is advisable to pay contractors in instalments, at fixed intervals as the work progresses. Also, make sure to withhold an amount that will be paid only when all the work under the contract has been carried out.

When the work involves several different persons or involves supplying materials, it is wise to secure yourself against the consequences of legal hypothecs.

Is it true that a contractor, a workman, or a supplier of materials can charge a hypothec on my house?

Yes. You should know that an unpaid contractor has a “legal” hypothec on the building that he renovated if the building’s owner hired him to do the work.

The workmen hired to do the project also have the same right.

Moreover, all the sub-contractors, suppliers of materials, architects, and engineers who provided labour, services or materials to the worksite have a hypothec on the building as well. However, before beginning their work, they must inform you of what they were asked to do and of the cost of their services.

Even if you pay your contractor in full, but he does not pay his own suppliers, the suppliers have the right to charge a legal hypothec on your building. Thankfully, there are several ways to avoid this situation:

• The contractor can provide a surety that guarantees that an insurer will cover all potential claims if the contractor doesn’t.
  
  
• Also, if the supplier informs you of the cost of his services, you can make your payments by writing out cheques in both the contractor and the supplier’s names. For example, 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 for payment, it would be wise to make one of them payable to both the contractor and the supplier in the amount of $6 000. This cheque could only be cashed with both recipients’ consent, which would guarantee that the supplier gets paid.
  
  
• Finally, you can 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 the claim within 30 days of the work’s completion. Withholding part of the cost of the renovations is especially useful to cover possible legal hypothecs held by workmen, who are under no obligation to inform you of what they were asked to do and of the cost of their services.

Where can I file a complaint if I am dissatisfied with the quality of the work?

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  (http://www.educaloi.qc.ca/en/loi/citizens/31/).

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. Complete a complaint form, available at the Régie's regional offices or on its website   (http://www.rbq.gouv.qc.ca/dirEntrepreneurs/dirFormulaires/index.asp) (French only - see "Plainte") and attach a copy of the registered letter that you sent to the contractor, as well as proof that you hired the contractor (copy of the signed contract or the invoice you received).

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 may be considered when the contractor goes to renew his licence.

Filing a complaint with the Régie, however, does not replace your other rights to legal recourse. You can also file an action in Small Claims Court if your claim is $ 7,000 or less, or in another court if your claim is higher than
$ 7,000.

For more information on the Small Claims Court, you can consult Côtécour.

Do I need a permit before beginning a renovation or construction project?

Check with your municipality. If you undertake a renovation or construction project without the permit(s) required by your municipality, you may be fined, or you may even have to take down everything you have constructed!

Useful Links :

1. Régie du bâtiment du Québec website  [http://www.rbq.gouv.qc.ca/dirEnglish/construction/renovEn.asp]
2. Office de la protection du consommateur website  [http://www.opc.gouv.qc.ca/]