Once you've decided on who you are going to hire, you're ready to have a contract for the project drawn up. Most often, the contractor will do this for you.

As explained in the Learn About Contracts section, the level of detail to be included in the contract will vary depending on the type of work involved. However, all contracts need to define two sets of information:

• Every aspect of the project that you and the contractor have agreed to, including the work to be done, material and product specifications, responsibility for building permits and inspections, the work schedule and price and payment arrangements.
  
  
• Proof that the contractor is operating their business properly, so that you are protected from risks. This includes proof of business liability insurance, Workers' Compensation coverage or equivalent accidental injury insurance, proof of bonding and/or licensing where this is required by provincial or municipal legislation, and proof of proper business registration (a Business or GST/HST Number).

The Sample Renovation Contract available from Canada Mortgage and Housing Corporation provides an excellent summary of what a contract should contain. For larger more expensive renovation and custom home building projects, you should also have the draft contract reviewed by your lawyer before signing.