The single biggest factor in renovation success is contractor selection — not the design, not the budget, not even the scope. A great contractor with imperfect drawings produces a great project. A bad contractor with great drawings produces a bad one. The vetting work below takes 4–6 hours total across 3 candidates and saves homeowners from the most common renovation horror stories.
The basics — what to verify (non-negotiable)
Business existence and tenure
- Years in business — at least 5, ideally 10+. The renovation industry has high turnover and "this name is new but we have 20 years of experience" is a common rebrand pattern
- Registered business name and address — check the Ontario business registry. A real contractor has a real business presence
- Physical office or shop — visit it for major projects. "We work out of our truck" works for handymen, not for $80K+ renovations
Insurance and liability
- General liability insurance — minimum $2 million in coverage. Request a certificate of insurance, with you (or your address) named
- WSIB (Workplace Safety and Insurance Board) — clearance certificate, current. Without this, you can be liable if a worker is injured on your property
- Errors and omissions insurance — for design-build firms. Less critical for pure construction contractors
Trade licensing
- Master plumber and master electrician on staff or under direct subcontract. For renovations with plumbing or electrical scope
- HVAC certification if mechanical work is in scope
- RIN (Renovator Identification Number) from CRA — for HST/GST collection, indicates legitimate business operation
The portfolio review
Recent, relevant projects
Ask for 3 recent projects similar in scope to yours, completed in the last 12 months. Look at:
- Photos of finish work (not just dramatic before/afters)
- Project timeline — how long it actually took
- Original budget vs final cost — anything over 10% should have an explanation
- Permits handled — proof the contractor knows the local processes
A reputable contractor like Red Stone Contracting publishes their project work openly. See Red Stone's project gallery for the level of documentation worth expecting.
References you can actually call
Ask for 3 references from the last year. The questions to ask each reference:
- Did the project finish on time? If not, why?
- Did the project finish on budget? What did the change orders look like?
- How was communication during the project?
- Was the site kept clean? Were the trades respectful of your home?
- Has anything failed since? How was the warranty experience?
- Would you hire them again? (Watch for hesitation here.)
The quote review
Line-item, not lump-sum
A quality renovation quote breaks scope into discrete line items:
- Demolition and disposal
- Rough framing, plumbing, electrical, HVAC
- Drywall, insulation
- Cabinets (with brand/line spec)
- Counters (with material and edge profile)
- Flooring
- Tile work
- Plumbing fixtures (with brand/model)
- Lighting and electrical fixtures
- Paint and finishes
- Permits
- Cleanup and final
- Contingency (10–15% is typical and healthy)
Lump-sum quotes hide where money is going. They're often a sign of the contractor not having done the actual takeoff work yet.
Material allowances
Where homeowners will pick later (tiles, fixtures, lighting), the quote uses allowances. Check:
- Allowance amounts are realistic for the quality of finish you want
- The contract specifies how over/under will be reconciled
- Brand and grade examples are provided so you know what the allowance represents
Payment schedule
Standard structure: 20–30% deposit at contract signing, milestone payments at framing/rough-in/finish stages, final 10–15% on completion (held until punch list closes). Watch for:
- Deposits over 40% — unusual and risky
- Full payment before completion — never appropriate
- Cash-only requests — major red flag
Red flags to walk away from
- "We need 50% deposit to start" — outside industry norm
- "Cash discount" pressure — implies tax avoidance, voids warranty enforcement
- No physical office, only a phone number
- Can't or won't provide proof of insurance/WSIB
- Pressure to sign immediately — quality contractors are booked out weeks
- Quote dramatically lower than competitors — usually means missing scope items
- Quote dramatically higher than competitors — sometimes legitimate (premium scope), sometimes not
- References are all family/friends — not credible
- Project portfolio is all model homes or stock photos — fabricated portfolio
- Refuses to commit to a written timeline
- Hostile when asked about permits — suggests history of avoiding them
Green flags worth noticing
- Multi-page detailed quote with sketches or selection lists
- Walks the project space carefully during the quote visit, asks lots of questions
- Mentions specific permit experience by city ("we did a basement permit in Oakville last month, here's what the inspector wanted...")
- Provides selection guidance for finishes (cabinets, tiles, fixtures)
- Acknowledges what they don't know — "we'd need to open the wall to be sure" is honest, not a weakness
- Provides clear answers to "what could go wrong" with this project
- Walks through the schedule realistically, including weather and permit risks
The 3-quote framework
Standard advice is "get 3 quotes." Here's how to actually use them:
- Throw out the highest if it's significantly over the others — unless they're scoping additional work you wanted
- Throw out the lowest if it's significantly under — they're either missing scope, using lower-quality materials, or planning to nickel-and-dime with change orders
- Compare the middle two on: reputation, references, communication during the quote phase, line-item clarity, and how comfortable you'd feel having them in your home for 8–14 weeks