Renovation Contract (Standard Form – Ontario)

Below you will find a sample contract which appeared for many years on the CMHC website. It is now no longer available. More recently, CMHC published a disclaimer concerning its use. So, you should use it only as a starting point and not as a full and complete document.


Renovation Contract


Contractor (name of company) ______________________________
Address _______________________________________________
Project manager _________________________________________
Telephone __________ Fax ___________ E-mail _______________
Business Number ________________________________________
Municipal Business License #, if applicable _____________________


Owner(s) ______________________________________________
Address _______________________________________________
Telephone __ _______Fax ___________ E-mail ________________
Project address (if different from above)________________________

1. Contract Documents

(a) This Contract form

(b) Drawings attached and/or referenced herein (if any)

(c) Specifications attached and/or referenced herein (if any)

(d) Additional documents signed by both parties during the course of this Contract. Extras and deletions to be documented on a Change Order Form and signed by both parties.

(e) Other

Omissions in the Contract Documents and any work requested in variance to the Contract Documents are considered extra to the Contract and are not included in the Contract Price. Any additional work, required due to site conditions known to the Owner and not disclosed to the Contractor, or which could not be reasonably anticipated by the Contractor, are not included in the Contract Price and shall be extra to the Contract Price.

2. Description of Work
Unless otherwise stated, the Contractor agrees to supply all materials, labour and supervision to perform the Work as (choose one):

______ Described below
______ Described in the attached Work Schedule

a. The Work entails the following _____________________________
b. The Work does NOT include the following

c. Permits

Work will be undertaken under the following permits which will be provided and paid for by the Owner or the Contractor as designated below.

Owner Contractor

(i) Zoning variance _______ _______
(ii) Demolition permit _______ _______
(iii) Building permit _______ _______
(iv) Electrical permit _______ _______
(v) Plumbing permit _______ _______
(vi) Other _______ _______

Any such permit obtained by the Contractor will be conveyed to the Owner within ___ days of receipt by the Contractor.

The following parties (specify Contractor or Owner) will contact the appropriate authorities for inspections: ______________________________________________________

d. Subtrades

The Contractor will use the following subtrades during the performance of the Work as listed below (company name and service provided): ______________________________________________________

If any subtrade listed above subsequently becomes unavailable for the Work, the Contractor will provide a suitable replacement, for Owner’s approval prior to the subtrade commencing work.

Nothing contained in the Contract Documents is intended to, nor shall it, create any contractual relation between the Owner and any subtrade. The Contractor agrees that it is responsible for the enforcement of all material provisions of all subcontracts.

3. Timing

Work to commence on or before (date) ________________________
Substantial Completion on or before (date) ______________________
Full Completion on or before (date) ___________________________

Substantial Completion means that the Work has been completed to such a percentage completion as is specified for substantial completion or substantial performance of such Work in the applicable legislation of the province where the Project is situated, that the Work has been completed to the point where it is ready for use for the intended purpose, and that an occupancy permit, where required, has been issued.

All time limits stated in this Contract are of the essence. Notwithstanding the foregoing, any delay in Substantial Completion or Full Completion of the Work (as the case may be) in accordance with the Contract Documents will be considered an excusable delay if arising from causes beyond the Contractor’s control and not reasonably foreseeable by the Contractor with the use of the Contractor’s best professional efforts. Excusable delays include but are not limited to such events as labour disputes, unavailability of materials, delays in obtaining a permit, fire, natural disaster, unfavourable weather conditions, delays (other than delays arising out of Contractor’s breach of this Contract) by, or breach by any subtrades; or any delay by Owner of processing proposed changes, delays resulting from inaccuracies in information provided by the Owner, or delays resulting from the performance of tasks described in section 2b.

In the event of the occurrence of an excusable delay, Owner shall grant appropriate extensions to cover such periods of delays. Owner shall have no obligation to grant extensions if delays were not excusable delays, or otherwise resulted, directly or indirectly, from the Contractor’s breach of this Contract. Where a delay occurs, the Contractor must inform the Owner at the earliest possible date of such occurrence, the reason for the delay and anticipated amended dates of completion.

The Contractor and Owner agree that should the Contractor not be able to commence the Work within ___ days from the commencement date specified in this Section, due to causes beyond the Contractor’s control such as inability to obtain a building permit, then the Contractor or the Owner may cancel the Contract on written notice mailed to or delivered to the address of the other party shown in this Contract. The Contractor’s liability to the Owner shall be limited to the refund of any monies paid by the Owner to the Contractor, less any cost incurred by the Contractor as previously agreed to by the Owner as specified below.


4. Terms of Payment

The Contract price is to be calculated as follows (select one):

(a) Stipulated fixed cost basis (all inclusive) $__________________, plus HST Payments shall be due and payable as outlined in the Payment Schedule.

(b) Cost plus ______________% of cost, plus HST Payments shall be due on a bi-weekly _______ or monthly ________ basis (check one).

(c) Cost plus fixed fee of $_______________________, plus GST/HST

Payment shall be due and payable as outlined in the Payment Schedule. A percentage of the fixed fee shall be paid on the presentation of each billing and shall be proportionate to the percentage of work completed for that billing period.

5. Payment Schedule

The Owner will make payments to the Contractor, minus a ___% holdback as required by provincial construction lien legislation, as follows:

Gross Payment Holdback

Signing of Contract $________ $________ $________

Start-up of Work _____ _____ _____

Upon completion of
___________ _____ _____ _____

Upon completion of
____________ _____ _____ _____

Upon completion of
____________ _____ _____ _____

Substantial Completion _____ _____ _____

Full Completion _____ _____ _____

___% Holdback for ___ days after completion _____ _____ _____

TOTAL _____ _____ _____

Payment is due within ___ days of invoicing. Interest of ___% per annum, or the maximum rate allowable by law, whichever is less, will be charged on unpaid invoices after the due date.

All payments are subject to applicable legislation and shall be made in accordance with provisions of this Contract and the provisions of any applicable legislation. All payments must be made to the Contractor. Any payment to a subcontractor is not deemed a payment to the Contractor.

6. Changes in Work

The Owner may make changes by altering, adding to, or deducting from the Work, with the Contract and Contract Price being adjusted accordingly. Changes to the Work require a written Change Order Form, signed by both the Owner and the Contractor.

a) Extras will be calculated in the following manner (check one):

1) ___ Material cost plus hourly rate of $ ___
2) ___ Labour and material cost plus ____%
3) ___ A lump sum to be agreed on in advance by both parties.

Extras are payable upon (check one):

1) ___ Signing the Change Order
2) ___ Invoicing pursuant to the Change Order
3) ___ Completion of work specified in Change Order less___% holdback in all cases.

b) Deletions will be calculated on a cost less ___% basis, to be deducted from the relevant or next scheduled payment.

7. Utilities and Washroom Facilities

The Contractor and the Owner agree that responsibility for the provision of utilities and facilities to meet work and worker requirements will be assumed in the following manner:

Owner Contractor

(a) Water _____ _____
(b) Electricity _____ _____
(c) Washroom _____ _____
(d) Other
________________ _____ _____

8. Standards of Work

The Contractor agrees to supply all labour, materials and supervision to complete the Work in accordance with the Contract Documents.

The Contractor agrees to undertake all Work diligently in a good and workmanlike manner, in accordance with good quality residential standards and practices, and in compliance with any applicable Building Code and all other authorities having jurisdiction.

The Owner accepts that there may be inconveniences from time to time, and the Contractor agrees to keep such inconveniences to a reasonable minimum. It is the responsibility of the Owner to take reasonable steps to provide a work area free of household obstructions, and to remove or protect household items in areas where it may be reasonably anticipated by the Owner that they may be subject to dust, damage or vibrations.

The Contractor agrees to keep the site orderly and reasonably free of debris. At the completion of the project, the Contractor shall clean the property and leave it fit for use. All equipment, materials, rubbish and similar material incidental to the project shall be removed by the Contractor.

9. Warranty

The Contractor shall correct, at its’ own expense, any defects in the Work due to faulty materials and/or workmanship pursuant to this Contract for a period of ___ year(s) from the date of Full Completion.

The Owner shall give the Contractor written notice of such defects within a reasonable time, and in any event within the warranty period.

Special conditions limiting/affecting this warranty (if any)

The Contractor will convey to Owner any warranties by manufacturers or suppliers on individual materials, products or systems supplied by Contractor under this Contract.

The Contractor does not warrant labour and/or materials supplied by the Owner or the Owner’s subcontractors. The Contractor shall protect the Work, the Owner’s property and the property of third parties from damage occasioned by the performance of its obligations under the Contract Documents.

10. Insurance

Prior to commencing the Work, the Contractor agrees to provide, maintain and pay for insurance during the time the Work is being performed, including commercial general liability in the minimum amount of $1,000,000 against claims for damages for personal injury or property damage by reason of anything done or not done by the Contractor, its employees or agents, in connection with the performance of this Contract. The Contractor will also provide proof of automobile liability insurance. The Contractor is responsible for all materials on site provided by the Contractor for the Work in this Contract until installed.

11. Compliance with Workers’ Compensation and Other Laws

The Contractor agrees to provide evidence of compliance by the Contractor’s own company and any of the Contractor’s subcontractors with all requirements for registration and payments due under the province’s workers’ compensation statute.

The Contractor also agrees to comply with all laws, ordinances, rules, regulations, codes and orders in force during the performance of the Contract which relate to the preservation of public health or construction safety.

12. Other Contractors

Owner reserves the right to let separate contracts in connection with the Work or to do certain work by Owner’s own forces as specified in Description of Work.

The Contractor shall include in his work co-ordination with Owner’s separate contractors or forces, and Owner shall pay the Contractor $ __________ for coordination of same.

13. Dispute Resolution

The Owner and the Contractor agree that in the event of a dispute as to the interpretation of this Contract or the extent of the Work, the issues shall be submitted to arbitration as agreed to by both parties or under the province’s arbitration statute.

14. Default by Owner

In the event that (a) the Owner does not perform its obligations under this Contract in accordance with the terms of this Contract and has not corrected the default within ___ days of written notice by the Contractor, or (b) the Owner becomes bankrupt or makes a general assignment for the benefit of its creditors, or if a receiver of the Owner is appointed, or (c) if the Work is stopped as a result of a court order, then the Contractor may cease work and treat the contract as repudiated forthwith on the occurrence of such default. In such event, an accounting shall be made between the Owner and the Contractor, and the Contractor shall be entitled to payment for such parts of the Work as are completed at the time of default.

15. Default by Contractor

In the event that (a) the Contractor does not perform the Work in accordance with the terms of this Contract and has not corrected the default within ___ days of written notice by the Owner, or (b) the Contractor becomes bankrupt or makes a general assignment for the benefit of its creditors, or if a receiver of the Contractor is appointed, then the Owner may finish the Work in accordance with the plans and specifications as the Owner may deem expedient, but without undue delay or expense.

In such event, the Contractor shall not be entitled to any further payment under this Contract, but upon completion of the Work, an accounting shall be made between the Owner and the Contractor. If the unpaid balance on the Contract Price shall exceed the expense of finishing the Work, the Owner shall pay the Contractor for such parts of the work as were payable or completed at the time of the default. However, if such expense shall exceed such unpaid balance, the Contractor shall pay the difference to the Owner.

16. Signs

The Owner agrees to permit the Contractor to display a sign on the project site until completion.

This Contract shall not be assigned, in whole or in part, without the prior written consent of the other party, which consent will not be unreasonably withheld or delayed.

This Contract shall be governed by and construed under the laws of the Province in which the project is situated, and supercedes all prior communications and agreements. There are no other terms outside of this Contract.

The Contractor assures that there is not now any claim, action, contract, rule or other circumstance which may interfere with the Contractor’s ability to perform its obligations under this contract.
________________ ________________ ________________
Owner                                     Date                           Witness
________________ ________________ ________________
Owner                                      Date                           Witness
________________ ________________ ________________
Contractor                               Date                           Witness

Brian Madigan LL.B., Broker

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