What does a good renovation contract look like in British Columbia?

A good renovation contract in BC should be a detailed, written agreement that protects both you and your contractor while clearly outlining scope, costs, timelines, and responsibilities. Never proceed with verbal agreements or handshake deals—BC's Business Practices and Consumer Protection Act requires written contracts for home improvement work over $500.

Essential Contract Elements

Your renovation contract must include the contractor's full legal business name, address, and license numbers. In BC, electrical contractors need Technical Safety BC licensing, gas contractors need TSBC gas contractor permits, and plumbers need municipal trade licenses. If your project involves new construction (like a laneway house), verify the contractor is a Licensed Residential Builder registered with BC Housing.

Scope of work should be incredibly detailed—not just "renovate kitchen" but specifics like "install 36 linear feet of soft-close shaker-style cabinets, quartz countertops with undermount sink, tile backsplash 18 inches high, LED under-cabinet lighting, and luxury vinyl plank flooring throughout 120 sq ft area." Include material specifications, brands, model numbers, and finishes. This prevents the dreaded "that's extra" conversations later.

Total contract price and payment schedule must be clearly stated. In BC, contractors cannot demand more than 10% down payment or $1,000, whichever is less, before work begins. Avoid contractors asking for large upfront payments—this is a red flag. Payment should be tied to completion milestones, with final payment (typically 10%) held until all work is complete and you're satisfied.

Timeline and Change Management

Include realistic start and completion dates with allowances for permit delays and weather. Vancouver permitting can take 4-8 weeks for simple projects, 3-6+ months for complex work. The contract should specify how delays will be handled and whether there are penalties for contractor-caused delays.

Change order procedures are crucial—any modifications to the original scope must be in writing with updated pricing before work proceeds. This protects you from surprise costs and ensures the contractor gets paid for legitimate additional work.

Legal Protections and Insurance

Your contract should confirm the contractor carries WorkSafeBC coverage (BC's workplace insurance) and minimum $2 million liability insurance. Request certificates of insurance before work begins. If you're in a strata, your contractor may need additional coverage to meet strata requirements.

Include lien protection clauses referencing BC's Builders Lien Act. The contract should state that you'll receive lien waivers from the contractor and major suppliers upon payment. Consider holding back 10% of payments for 55 days after completion—this is your legal protection period under the Builders Lien Act.

Permits and Code Compliance

The contract must specify who obtains permits and inspections. Typically the contractor handles this, but it should be explicit. All work must comply with BC Building Code 2024, and electrical/gas work requires Technical Safety BC inspections. Never accept a contract that suggests avoiding permits—this creates liability and insurance issues.

Warranty and Cleanup

Include warranty terms for workmanship (typically 1 year minimum) and how warranty issues will be addressed. The contract should specify cleanup responsibilities—who removes debris, protects existing finishes, and leaves the site clean.

For projects involving new homes or substantial additions, ensure compliance with BC Housing's 2-5-10 warranty requirements if applicable.

Red Flags to Avoid

Never sign contracts with door-to-door contractors, those demanding large upfront payments, or anyone pressuring you to "sign today." Avoid contracts without specific material lists, those that seem too good to be true on pricing, or contractors who can't provide proper licensing and insurance documentation.