Get it in Writing!

A contract is simply an agreement between you and a contractor that is enforceable by law. Consumers enter into contracts all the time, often without recognizing it. When you sign a credit card receipt, you're signing a contract. When you sign a work order for an oil change on your car, you're signing a contract. When you apply for a library card, you sign a contract. So the idea of having a contract when you hire someone to do work on your home just makes good sense. After all, if you're like most people, your home is your single largest financial asset.

A detailed written contract between you and your contractor is essential, whether you are doing a simple home repair, major renovation or even having a custom home built. The size or cost of the job doesn't alter the importance of a contract, just the amount of information and detail that it needs to include.

For a minor home repair, like installing a kitchen faucet, a simple work order may be adequate. For more substantial repair projects, like roof re-shingling, additional details on the materials to be used and the contractor's warranty should also be included. For complex repairs, renovations and custom home construction, the contract can become fairly lengthy and will need to include full plans and specifications.

The following sections provide additional information about contracts, plus links to an excellent Sample Renovation Contract developed by Canada Mortgage and Housing Corporation (CMHC).