How to manage payments for your home renovation contract

While it is normal to pay for your renovation work, the amounts requested must match what was originally agreed upon. Certain rules must be followed to avoid unpleasant surprises, cost overruns, or disputes — whether it’s a small renovation project or major residential construction work. 

The home renovation contract you sign with your licensed renovation contractor must clearly describe the work, the price, and the payment terms. It must also outline the responsibilities and obligations of each party, such as terms and conditions and due dates. 

This document is your main form of protection in case of misunderstanding. It can be reviewed legally if a dispute occurs during or after the work. It may also be used if you request mediation with CAA-Quebec after hiring an Approved Residential Supplier. 

When the total cost is higher, it is recommended to plan a progressive payment schedule. Make sure these terms are clearly written in the contract. This type of agreement complies with the Civil Code of Quebec rules, including those related to contract formation and ongoing obligations. 

When should you make payments during renovation work?

If your renovation project is inexpensive, you can pay once the work is completed. If the total cost is higher, create a clear construction payment schedule and include it in the contract. You can choose different payment methods: 

• Pay your home improvement contractor in instalments 

• Pay as the project progresses — this is the method recommended by the Office de la protection du consommateur (OPC) 

• Set fixed due dates and payment amounts 

How to protect yourself financially 

• Make all payments by cheque or credit card—this creates a clear legal and financial payment process record 

• Always request a signed receipt from your contractor. It must include the date, purpose (e.g., “first payment for bathroom renovation”), and payment amount 

What is a legal hypothec?

A legal construction hypothec may be registered if your renovation contractor fails to pay subcontractors or workers. This hypothec affects part of your property based on the value of labour and materials until full payment is made. 

If a legal hypothec notice is issued, you have 30 days to defend your rights and file a hypothecary recourse if necessary. 

How to protect yourself from a legal hypothec

Include in your renovation contract that your contractor must prove with supporting receipts that all subcontractors and suppliers were paid. Another option is to issue joint cheques payable to the contractor, supplier, and workers — as long as this is stated clearly in the contract. If needed, seek legal advice from a lawyer specialized in the construction law of Quebec. 

Should you pay a deposit before renovation work begins?

The Office de la protection du consommateur recommends avoiding deposits whenever possible or paying only a small amount. In reality, most renovation contractors require a deposit representing 10% to 15% of the total project cost. 

Some will request a higher amount, especially if they need to order special-order items or expensive materials such as custom windows, kitchen cabinets, or for excavation work. In these cases, a deposit between 10% and 50% may be requested. 

What should you verify after your renovation project is completed?

Once the work is finished, inspect the entire work area. Note any defects such as poorly finished joints or misaligned tiles. Revisit the inspection with your general contractor. If they disagree, stay firm and only make payments once all corrections and repairs are completed. 

If the contractor must redo part of the work, pay only for the completed and corrected portion. Make your final payment only when you are fully satisfied. At that time, you can sign the certificate of completion, confirming the end of the construction contract. In case of dispute, you may also issue an official notice following Régie du bâtiment du Québec (RBQ) guidelines.