Mar 9, 2026
Hiring a contractor to build a home addition is a major decision — especially when the project runs into six figures.
A caller to The Ramsey Show shared a situation that will feel familiar to anyone who has trusted a contractor with a large sum of money. Susan said her family had paid nearly all of a US$313,000 contract — and the project was nowhere near finished months after its scheduled completion date.
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“It was supposed to be done by Thanksgiving, and it’s not anywhere close to being done right now,” she said in a clip posted February 2 (1).
With only US$11,000 of the budget left on the US$313,000 project, her family had very little financial leverage. Susan wanted to know what her options were to get the project moving — a question that will equally apply to Canadian homeowners facing similar situations.
'That's a low bar'
Some homeowners sign contracts without fully understanding how issues like delays, supply shortages and subcontractor issues can derail a project.
“We just kind of trusted our contractor,” Susan said.
Cohost Rachel Cruze was blunt. When Susan noted that at least the contractor had stayed communicative and hadn't abandoned the project, Cruze pushed back: “Yeah, that’s a low bar though, Susan.”
Cruze recommended Susan’s family sit down with the contractor and establish new terms — reasonable deadlines with real consequences — and if that conversation goes nowhere, it would then be time to look at legal action to recover money and find a new contractor.
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Susan’s scenario is unfortunately one that plays out regularly. When timelines stretch on and work stalls, families can be left carrying mortgage payments on homes that are incomplete or uninhabitable. And by the time things go sideways, many homeowners have already handed over most of their budget.
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Read the fine print
Protection starts before a single nail is driven, at the contract stage. If a contractor misses an agreed-upon deadline, or the delay is considered unreasonable, homeowners may have ground for making a legal claim.
But if the delay stems from circumstances outside the contractor’s control — and the contract doesn’t address that scenario — a homeowner’s options can be limited, according to Consumer Protection Ontario. (2)
That’s why a thorough, written agreement matters. Before you sign, review it carefully, ideally with a lawyer. A solid renovation contract should include:
- A detailed scope of work
- Total price and payment schedule
- Firm start and finish dates
- Change order procedures
- How disputes will be handled
- How delays will be addressed
- What’s counts as a breach of contract or project abandonment
- Conditions under which either party can terminate the agreement
It’s also widely recommended to never pay the full amount up front. The Canadian Consumer Handbook advises staggering payment at various stages so the contractor can cover the cost of labour and material as work progresses — and holding back the final payment until the work is complete and has passed inspection (3).
Knowing which body regulates contractors in your province is a useful first step before hiring anyone. Here’s a quick breakdown:
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- British Columbia: BC Housing Licensing & Consumer Services oversees residential builders (4)
- Alberta: Renovation contractors who accept deposits must be licensed through Service Alberta as a prepaid contracting business (5)
- Manitoba: The Consumer Protection Office provides guidance on hiring contractors and resolving disputes (6)
- Ontario: Tarion administers Ontario’s new-home warranty program, while Skilled Trades Ontario licenses specific trades such as electricians and plumbers (7) (8)
- Quebec: All renovation contractors must hold a license from the Régie du bâtiment (RBQ) (9)
- Saskatchewan, New Brunswick, Nova Scotia, PEI and Newfoundland: These provinces don’t require a general contractor license at the provincial level — only specific trades like electricians and plumbers must be licensed, according to the New Brunswick Financial and Consumer Services Commission (10) and TrustedPros' provincial licensing guide (11)
- All provinces: The Canadian Consumer Handbook offers federal-level guidance on renovation contracts and your rights as a homeowner (12)
For Susan’s family, the options are essentially what Cruze laid out: negotiate a new deadline with real teeth, or pursue the contractors through the courts. With nearly all the money already paid out, their leverage is limited, but legal options do exist.
Bottom line
It can be emotionally and financially devastating when a home renovation goes wrong. The best protection is preparation: a detailed contract, a specific timeline, a staggered payment schedule and a clear understanding of your rights and obligations before any work begins.
If you’re already in a difficult situation with a contractor, start by documenting everything — emails, texts, photos of incomplete work and any verbal agreements you can recall. Then consult a lawyer who handles construction disputes. Small claims courts can handle disputes up to C$50,000 in Ontario and varying amounts in other provinces.
Don’t wait and hope for the problem to resolve itself. The longer a stalled project sits, the harder it can be to recover your money — and get your home finished the way you envisioned.
— with files from Melanie Huddart
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Youtube (1); Ontario (2); Canadian Consumer Handbook (3)(12); BC Housing (4); Alberta (5); Manitoba (6); Tarion (7); Skilled Trades Ontario (8); Régie du bâtiment du Québec (9); Financial and Consumer Services Commission of New Brunswick (10); Trusted Pros (11)
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Vawn Himmelsbach is a journalist who has been covering tech, business and travel for more than two decades. Her work has been published in a variety of publications, including The Globe and Mail, Toronto Star, National Post, CBC News, ITbusiness, CAA Magazine, Zoomer, BOLD Magazine and Travelweek, among others.
