Guide · Renovation contractors

Renovation contracts in Ontario,
what the law expects.

When you work for homeowners in Ontario, the Consumer Protection Act decides a good part of what your quote and contract have to say. Most of it is common sense, but a few details, like the exact cancellation statement, trip people up. This is the contractor's version, current as of September 2026.

Published 2026-09-21 · Formory Group

Which law applies in 2026.

The rules below come from the Consumer Protection Act, 2002 and its general regulation, O. Reg. 17/05. Ontario passed a replacement, the Consumer Protection Act, 2023, as Schedule 1 of Bill 142, which received Royal Assent on December 6, 2023.

As of September 2026 the 2023 Act has not been proclaimed in force. The 2002 Act still applies, with a note on e-Laws that it will be repealed on a day to be named by proclamation. When that day is set, some details below will change, so check again before you reprint contract templates.

When a contract must be in writing.

Ontario's guide for home renovation and roofing businesses states it plainly: you must have a written agreement for any contract worth more than $50. For the most common renovation situation, a deal made at the customer's home, section 42 of the Act requires the agreement to be in writing and delivered to the customer, and O. Reg. 17/05 sets the $50 threshold.

The Act calls a deal negotiated or concluded in person anywhere other than your place of business a direct agreement. A quote you write at the kitchen table and the homeowner signs there is the textbook case.

What a direct agreement must contain.

Section 35 of O. Reg. 17/05 lists the contents. The agreement must be signed by you and the customer and must set out, among other things: the customer's name and address; your name and any business name; your phone number, business address and other contact details such as email; the names of whoever solicited, negotiated and concluded the deal; the date and place it was signed; a fair and accurate description of the work and materials; the total amount payable; the terms of payment; an itemized price list including taxes; the start and completion dates; and any other restrictions or conditions you impose.

It must also include a specific statement of the customer's rights, with the heading "Your Rights under the Consumer Protection Act, 2002". The regulation prescribes the wording, requires at least 10 point type with a 12 point bold heading, and requires it on the first page unless a 12 point bold notice there says where to find it. Copy the text from the regulation itself rather than from a competitor's contract.

Ontario's guide adds practical items it expects to see: warranty details, subcontractor information, a payment schedule, the deposit amount and who is responsible for clean-up.

The 10-day cooling-off period.

Under section 43 of the Act, a customer may cancel a direct agreement for any reason from the day it is signed until 10 days after they receive the written copy. If the copy they get does not meet the requirements, the cancellation window stretches to one year.

If the customer cancels, you must refund any payment within 15 days after they give notice, under section 79 of O. Reg. 17/05. The prescribed statement also tells the customer they may cancel if you do not start within 30 days of the start date in the contract, or within 30 days of signing if no date is set.

The practical consequence: do not order special materials against a deposit during the first 10 days unless you are prepared to eat the cost. And give the customer the written copy the same day, because the 10 days only start running once they have it.

Estimates and the 10 per cent rule.

Section 10 of the Act says that if a consumer agreement includes an estimate, you may not charge more than 10 per cent above it. If you do, the customer can insist on the estimated price.

The same section allows you and the customer to agree to amend the price when they want additional or different work. Ontario's guide recommends getting that change in writing. On a renovation, where walls get opened and surprises are normal, a signed change order for every addition is the simplest protection.

Section 11 is worth remembering too: any ambiguity in an agreement you wrote is interpreted in the customer's favour. Vague scope lines like "bathroom refresh" cost contractors money.

Deposits.

The Consumer Protection Act does not set a general cap on renovation deposits. What exists is guidance: Ontario's guide recommends deposits of no more than 10 per cent of the total project cost, and it is what informed homeowners will have read.

If your business model needs a larger deposit, for example for custom windows or cabinets, say why in the quote. A payment schedule tied to stages makes a larger upfront payment easier to accept, and the contract has to show the deposit amount either way.

What to put on your website.

Your site is where the homeowner forms expectations before you ever write a quote. Three things help: a short page explaining how you quote (site visit, written estimate, change orders in writing); your typical deposit and payment schedule; and a quote request form, which also creates a written record of who contacted whom. For furnaces, air conditioners, water heaters and similar equipment, that record matters because section 43.1 bans in-home solicitation for those products unless the customer initiated contact; see the TSSA and HVAC guide.

If you show "starting from" prices, make sure they are prices a customer can actually get. How to present tax on those prices is covered in our HST guide, and websites for renovation contractors shows how we lay this out for clients.

General information, not legal advice. For your own contracts, ask a lawyer or Consumer Protection Ontario.

Sources.

The usual questions.

Does a renovation contract in Ontario have to be in writing?

Yes, if it is worth more than $50. Ontario's guide for renovation businesses says so directly, and direct agreements signed at the home have detailed content requirements under O. Reg. 17/05.

Can a homeowner cancel a renovation contract in Ontario?

If it was signed at their home, they can cancel for any reason within 10 days after receiving the written copy. If the copy does not meet the legal requirements, that window is one year.

How much over the estimate can a contractor charge in Ontario?

No more than 10 per cent over an estimate included in the agreement, unless the customer agrees to additional or different work.

Is there a legal maximum deposit for renovations in Ontario?

The Consumer Protection Act does not set one. Ontario's guidance recommends deposits of no more than 10 per cent of the project cost.

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Renovation contracts in Ontario,what the law expects.