If you plan starting your home renovation project, knowing about this 10% Rule can help you save thousands of dollars.
What is it all about? To make it short, it’s about including a detailed written estimate in your home renovation contract. Remember, under Ontario law, any home renovation contract worth more than $50 must be in writing.
If an estimate is included as part of the contract, the final price for all goods and services cannot be more than 10% above the original estimate, unless you agree to a new price. If it’s the case, it also must be done in writing, with the date and, as a change to the contract. If you are charged more than 10% above a written estimate without agreeing to it, you can demand that the final price be adjusted. If your contractor refuses to adjust the price, you can file a complaint with the Ministry of Government and Consumer Services of Ontario
Do your homework, make a list of exactly what you want to be done. Discuss everything with your contractor. Make sure that everything you are expecting is agreed upon and listed in the contract. It is of crucial importance for you to insist that the written estimates are included in your contract. Estimates should be made in detail, have a description of the work to be done, and include an itemized list of products and services to be delivered and their prices. Remember that changing plans in the middle of a project will cost extra money. If new work comes up, your contractor should discuss it with you and ask you to approve and sign a change to the contract, including a new estimate.