Does the Construction Act holdback apply to a small Ottawa drywall repair?

Ontario's Construction Act says payers "shall retain a holdback equal to 10 per cent of the price of the services or materials as they are actually supplied". We found no exemption in it for small jobs or for homeowners, so ask a lawyer how it applies to a single drywall repair before you rely on it either way.

What we can say plainly: the holdback is a retention the Act requires as work is supplied, not a deposit and not a discount. When it can be released is a legal question; ask a lawyer about release timing on any job where the amount matters to you.

The Consumer Protection Act, 2002 adds protections that apply to a drywall contract:

• If an agreement includes an estimate, the supplier may not charge more than 10 per cent over it.
• A direct agreement, meaning one negotiated or signed somewhere other than the supplier's place of business, such as your home, must be in writing and delivered to you when it is over $50.
• You can cancel a direct agreement for any reason within 10 days of receiving your written copy.
• Services are deemed to be of a reasonably acceptable quality.

None of that replaces a clear scope. Put the repair itself on paper: which board is removed and replaced, the board used, the finish level by number, how many coats of compound, whether sanding and primer are included, and the warranty terms, meaning what is covered, for how long and whether they transfer to a buyer.

On WSIB, ask whether the contractor has WSIB coverage or is exempt. WSIB says construction businesses, with or without employees, must have coverage, with some exceptions, including independent operators doing only exempt home renovation work on a home lived in by the person who hires them.

Ask for the price, the scope and any estimate on the same page of the contract, so the 10 per cent estimate rule has something to measure against.