Written Terms Required: Renovation Agreements Between Contractors and Homeowners | Ajodhia Legal Services


Last Updated: August 25 2026

Question:Can a renovation contractor in Ontario make unlawful changes to the terms in my contract without a written change order?

Answer:Ajodhia Legal Services can help you in Ontario if a contractor changes renovation contract terms without proper written documentation, including when the change effectively becomes a “future performance agreement” that must be set out in writing under Consumer Protection Act, 2002, S.O. 2002, c. 30, Sch. A and when future performance agreement details must be included under O. Reg. 17/05 (s. 24);   if you received an informal change, revised scope, or extra charges, a paralegal can review your contract and any change order paperwork, identify missing required terms (like itemized pricing, dates, payment terms, and delivery/performance details), and help you respond with the right next steps;   call (647) 882-8205 today to discuss your renovation dispute and protect your rights.

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Unlawful Changes to Terms Within Renovation Contracts

It is common that business practices surrounding renovation and construction projects are kept informal; after all, the reality is that small business owners and consumers will, generally, lack the formality and expertise of mega-contractors such as Ellis-Don and a provincial government when negotiating the building of highways or bridges; however, and despite the differences in size and scope, for the most part, the same foundational contract law principles that apply to the big boys will also apply to the little guys.  Furthermore, and interestingly, whereas relationships with contractors, big or small, will be subject to the same contract law principles, the smaller contractors who are engaging in business-to-consumer dealings, such as performing construction or renovation projects for homeowners, are subjected to complying with the Consumer Protection Act, 2002, S.O. 2002, Chapter 30, Schedule A, which is inapplicable to the business-to-business dealings involving larger contractors.

Note: Please contact Ajodhia Legal Services by phone at: (647) 882-8205 to discuss any specific questions that you may have.

The Law
Written Contract Required

Although commonly uncomplied with, likely due to a lack of awareness, agreements between a contractor and a consumer, such as a homeowner, involving construction or renovation projects, require a written contract if commencement of the work will occur on a date that is other than the date the agreement is made.  In such circumstances, the contract entered into is known as a "future performance agreement" as is defined by the Consumer Protection Act, 2002, which states:


Interpretation

1  In this Act,

...

future performance agreement” means a consumer agreement in respect of which delivery, performance or payment in full is not made when the parties enter the agreement;

As is prescribed by section 22 of the Consumer Protection Act, 2002, in combination with section 24 of O. Reg. 17/05 as a regulation applicable to the Consumer Protection Act, 2002, a business that is to deliver goods or perform services at a later date, thereby the deal qualifying as a "future performance agreement", must provide a written contract containing specific terms and details.  The law specifically states:


Requirements for future performance agreements

22 Every future performance agreement shall be in writing, shall be delivered to the consumer and shall be made in accordance with the prescribed requirements.


Requirements for future performance agreements

24. For the purpose of section 22 of the Act, a future performance agreement that is not a gift card agreement to which sections 25.2 to 25.5 apply shall set out the following information:

1.  The name of the consumer.

2.  The name of the supplier and, if different, the name under which the supplier carries on business.

3.  The telephone number of the supplier, the address of the premises from which the supplier conducts business, and information respecting other ways, if any, in which the supplier can be contacted by the consumer, such as the fax number and e-mail address of the supplier.

4.  A fair and accurate description of the goods and services to be supplied to the consumer, including the technical requirements, if any, related to the use of the goods or services.

5.  An itemized list of the prices at which the goods and services are to be supplied to the consumer, including taxes and shipping charges.

6.  A description of each additional charge that applies or may apply, such as customs duties or brokerage fees, and the amount of the charge if the supplier can reasonably determine it.

7.  The total amount that the supplier knows is payable by the consumer under the agreement, including amounts that are required to be disclosed under paragraph 6, or, if the goods and services are to be supplied during an indefinite period, the amount and frequency of periodic payments.

8.  The terms and methods of payment.

9.  As applicable, the date or dates on which delivery, commencement of performance, ongoing performance and completion of performance are to occur.

10.  For goods and services that are to be delivered,

i.  the place to which they are to be delivered, and

ii.  if the supplier holds out a specific manner of delivery and will charge the consumer for delivery, the manner in which the goods and services are to be delivered, including the name of the carrier, if any, and including the method of transportation to be used.

11.  For services that are to be performed, the place where they are to be performed, the person for whom they are to be performed, the supplier’s method of performing them and, if the supplier holds out that a specific person other than the supplier will perform any of the services on the supplier’s behalf, the name of that person.

12.  The rights, if any, that the supplier agrees the consumer will have in addition to the rights under the Act and the obligations, if any, by which the supplier agrees to be bound in addition to the obligations under the Act, in relation to cancellations, returns, exchanges and refunds.

13.  If the agreement includes a trade-in arrangement, a description of the trade-in arrangement and the amount of the trade-in allowance.

14.  The currency in which amounts are expressed, if it is not Canadian currency.

15.  Any other restrictions, limitations and conditions that are imposed by the supplier.

16.  The date on which the agreement is entered into.

Written Change Orders Required

Just as a written contract is required for the "future performance agreement" that arises upon completion of initial negotiations, where contract terms subsequently change due to a Change Order, if the change constitutes as a "future performance agreement", meaning contract terms that will be fulfilled at a future time rather than at the time the Change Order is discussed and agreed to, a written Change Order is required.

Conclusion

A contractor, for both the initial agreement as well as any subsequent change orders, when in relations with a consumer such as homeowners, is required to provide a written contract to the homeowners.

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