The best builders and renovation contractors in Canada

Usually, for structural changes, additions, new plumbing or electrical work, basement finishing and new homes. Cosmetic updates such as new cabinets, counters, flooring and paint usually do not need one. Permits come from your municipality, and many firms apply as part of the job, so agree in writing who does it.

Ask for a certificate of liability insurance that covers the dates of your job, and for a clearance from your province's workers' compensation board (WorkSafeBC, WCB-Alberta, WCB Saskatchewan, WCB Manitoba, the WSIB, WorkSafeNB, WCB Nova Scotia or WorkplaceNL). The clearance confirms the firm is registered and its account is in good standing.

The scope of work, a payment schedule tied to stages of the work, start and finish dates, how changes are agreed and priced, who applies for permits, cleanup, and the warranty on the work. Get it signed before any work starts and keep every change in writing.

Provincial lien laws let, and in some provinces require, the person paying for construction work to hold back part of each payment for a set period after the work is done. If an unpaid trade or supplier registers a lien against the property, that money has been kept back to answer it. The rules differ by province, so ask your lawyer how holdback works where you live.

In British Columbia, Alberta, Manitoba and Ontario, new homes must carry warranty coverage set by provincial law, such as the 2-5-10 warranty in British Columbia and Tarion's warranty in Ontario. In Saskatchewan and the Atlantic provinces, warranty programs are voluntary, so ask the builder which program, if any, covers the house.

A renovation is not a new home, so the new home warranty rules usually do not apply: get the firm's own workmanship warranty in writing, with what it covers and for how long. Renovators in RenoMark, the Canadian Home Builders' Association program, offer a minimum two-year warranty on their work.