Most Toronto renovation stories focus on the fun parts: tile, flooring, layouts, and before-and-after photos. Behind every successful project, though, there is something far less glamorous holding everything together.
Paperwork.
A clear contract, proper insurance, and realistic warranties protect your home, budget, and timeline just as much as quality materials do. Without them, even a small project can turn stressful fast.
This 2025 guide explains how JG Contracting thinks about renovation contracts, insurance, and warranties for Toronto homeowners. It shares general information, not legal advice, but it will help you ask better questions before you sign anything.
Why Paperwork Matters As Much As Design
In Ontario, home renovations sit at the intersection of consumer protection rules, the Construction Act, building permits, and your own home insurance policy. That mix sounds complicated, and sometimes it is.
In practical terms, though, paperwork simply puts three things in writing:
- What the team will build – the scope of work and materials.
- How the work will happen and how you will pay – schedule, permits, and payment terms.
- What everyone will do if something goes wrong – insurance, warranties, and change processes.
A handshake or a one-line email does not offer enough protection for anything beyond the tiniest jobs. Instead, a written contract protects both you and the contractor and gives everyone a single reference point if questions come up later.
Key Pieces Every Toronto Renovation Contract Should Cover
Every project and contract looks a little different. You should always read the full document and ask questions. As a starting point, though, here are sections we believe every Toronto renovation contract should address in some form.
1. Clear scope of work
The scope explains what the contractor will do and, just as importantly, what they will not do.
Helpful details include:
- Which rooms does the project cover?
- Demolition work and disposal.
- What the team will repair versus fully rebuild.
- Who will patch adjacent areas that the work affects?
A clear scope gives enough detail that a third party could read it and understand what the contractor plans to deliver.
2. Materials, finishes and allowances
Most projects blend specific selections with allowances.
- Selections – for example, “12 x 24 porcelain tile, model X, colour Y.”
- Allowances – a dollar value set aside for items you will choose later, like plumbing fixtures or cabinet hardware.
Your contract should spell out:
- Which materials have you and the contractor already chosen and locked?
- Which line items remain allowances and how overages or savings will be handled.
- Whether prices include taxes, delivery, installation, and waste.
Allowances are normal, especially early in design. However, too many vague allowances can hide the true cost of a renovation.
3. Timeline and milestones
No contractor can promise that every single day on a project will go exactly as planned. Even so, the contract should still include:
- An estimated start window and target completion window.
- Major milestones, such as framing, inspections, tiling, and final walkthrough.
- How will schedule updates be communicated if something changes?
This section connects directly to any penalties or conditions for long delays, as well as to how change orders may affect the timeline.
4. Price, payment schedule and holdback
Your contract should clearly lay out:
- The total contract price or the formula if you agree to a cost plus arrangement.
- A payment schedule that ties payments to progress, not just dates.
- Any required deposits.
- How the final payment and holdback will work.
In Ontario, many homeowners choose to hold back a portion of each payment, often ten percent, to align with Construction Act guidance and to protect against certain types of liens. You should speak with your lawyer or advisor about how the holdback should work on your specific project.
Payments should feel fair and balanced. You should never pay far ahead of the actual work completed.
5. Change orders
Most renovations evolve in some way after work begins. Instead of handling those changes casually, your contract should explain how everyone will manage them.
A solid contract will explain:
- How you or the contractor can request changes.
- How price and schedule impacts will be documented.
- Whether both parties must sign change orders before extra work starts.
A quick email saying “no problem, we will just add that” does not give enough protection for meaningful changes. Written change orders keep everyone on the same page.
6. Permits, inspections and approvals
Someone has to pull the permit and schedule inspections. Your contract should make it clear who will do that work.
Common arrangements include:
- The contractor applies for building, electrical, and plumbing permits on your behalf.
- Permit and inspection fees appear either inside the contract price or as a separate line.
- You handle condo board approvals or heritage applications, and your contractor supports you with drawings or spec sheets.
If you agree that permits are not required, the contract should say why. That way, you have a record that everyone considers compliance rather than ignoring it.
Insurance And Safety: What A Homeowner Should Ask About
Even careful projects carry risk. Insurance protects both the contractor and you if something unexpected happens, so it deserves attention early.
Here are basic items to ask about before work begins.
1. Contractor liability insurance
Your contractor should carry general liability insurance with enough coverage for the scale of projects they take on.
You can ask to see:
- A certificate of insurance that lists their coverage and expiry date.
- Written confirmation that their policy covers the type of work they will be doing in your home.
Liability insurance helps respond to certain kinds of damage or loss that might occur during the project. It does not replace your own home insurance, but it adds a key layer of protection.
2. Workplace safety coverage
Depending on how the contractor is structured and who they employ, different workplace safety rules apply.
Toronto homeowners often ask for:
- Proof of WSIB coverage or a clear explanation of how workers are covered if an injury happens.
- Confirmation that subcontractors receive appropriate coverage as well.
You can also speak with your own insurance provider about any requirements they set when contractors work in your home.
3. Your own home insurance
Before a renovation starts, it helps to check in with your home insurance company.
Questions to ask include:
- Whether you need to notify them about major work.
- If your policy covers temporary vacancy or increased fire risk during construction.
- How will new work be reflected in your coverage once the project wraps up.
Warranties: Labour, Materials And New Homes
When someone says “warranty,” they might refer to a few different things. Sorting them out helps you know who to call if something goes wrong.
1. Contractor workmanship warranty
Many reputable contractors offer a workmanship warranty on their labour. They may stand behind their work for one year, two years, or longer for specific items.
A workmanship warranty usually covers issues that appear because the team did not install something correctly, such as a poorly sealed shower that leaks early in its life.
Your contract should spell out the duration and coverage of the workmanship warranty so you have it in writing.
2. Manufacturer warranties on products
Most products you choose arrive with their own manufacturer’s warranty.
Common examples include:
- Flooring and tile.
- Windows and exterior doors.
- Plumbing fixtures and faucets.
- Appliances, lighting, and fans.
Your contractor should provide manuals and warranty information at the end of the project and may help you register certain products. The manufacturer’s warranty usually covers defects in the product itself, not damage from misuse.
3. New home and Tarion style warranties
If you buy a newly built home from a registered builder, Tarion-style coverage applies to certain defects for one, two, and seven-year periods. For most renovation projects in existing homes, your contract and the individual product warranties provide the main coverage instead.
If your renovation involves an addition or major reconstruction, you can ask your contractor and lawyer how warranties will apply so you avoid surprises.
How JG Contracting Handles Contracts, Insurance & Protection
At JG Contracting, we treat paperwork as part of good craftsmanship. The goal is not to bury you in documents. Instead, we want to make sure expectations stay clear and your home stays protected.
On a typical Toronto project we:
- Start with a detailed written quote and scope that matches what you saw during the walkthrough and design phase.
- Use a written contract that lays out scope, price, schedule, payment terms, and change order processes in plain language.
- Coordinate permits for the work we are responsible for and help you gather information for condo boards or committees when needed.
- Carry appropriate insurance and work with trusted trades who do the same.
- Stand behind our work with a workmanship warranty and clear handover, including care guides and product information.
You should always feel comfortable asking questions about any part of the contract before signing. A contractor who stays open and patient at this stage usually makes a better long-term partner.
Quick Checklist Before You Sign A Renovation Contract
You can use this simple checklist as a starting point when you review paperwork at home.
- The scope of work feels specific enough that you can picture what is included.
- Materials and allowances appear clearly labelled, with taxes and installation spelled out.
- The payment schedule ties to real milestones, not just dates.
- The contract explains a plan for changes, with written change orders.
- Responsibilities for permits and inspections appear clear.
- You have seen proof of contractor liability insurance.
- You understand how workers receive coverage for injuries.
- Workmanship and product warranties appear in writing, not just verbally.
- You have had time to read and ask questions, without pressure.
If any of these items feel vague or rushed, take that as a sign to slow down and clarify the contract before you move ahead.
Helpful companion reads on our site:
- Red Flag Signs & Shady Renovation Quotes
- A Guide to Navigating Toronto’s Renovation & Permit Rules
- Third Street, Toronto – Full Home Renovation
- Juliana Court, Toronto – Full Home Renovation
Ready To Talk About Your Own Toronto Renovation?
If you are planning a renovation in Toronto and want clear contracts, realistic timelines, and well-protected work, we would be happy to help.
Our team can walk you through the scope, permits, and paperwork step by step so you can focus on the exciting parts of your project. Contact us today to book a consultation
📞 Call us at: 437-259-9632
✉️ Email us at: jgcontractingyyz@gmail.com
🌐 Website: https://jgcontractingyyz.com
