Your contract needs to include two sets of information.

First, the contract needs to fully define what you and the contractor have agreed to. This includes basic information such as:

• who the contractor is
• what the contractor is responsible for doing and what (if any) work you will do yourself or have another contractor do
• who is responsible for obtaining necessary building permits and inspections
• when this work will be done (start and estimated completion dates)
• how much you will pay the contractor for the work
• when payments are to be made
• what warranty the contractor provides for the work

Second, the contract needs to ensure that you are properly protected in the event that something goes wrong, or there is an accident or the contractor fails to conduct business properly. This includes clear requirements in the following areas:

• the contractor must have adequate business liability insurance
• the contractor must be enrolled in your province's Workers' Compensation program, or if exempt, must carry equivalent private disability insurance
• the contract must provide for payment holdbacks in accordance with your province's lien legislation
• the contractor should provide his/her Business or GST/HST Number
• if your province requires bonding, the contractor must show that this was done
• if your municipality requires contractors to be licensed, the contractor's license number must be included

These contract requirements are quite general, and should be taken as a guide only. If your project involves substantial cost or is fairly complex, you are well advised to have a lawyer with construction experience review it before your sign.