Doing a renovation of any size and having a construction contractor offer to take cash for their job instead of charging you 13% HST would be very tempting, especially on a large scale project. However here are some very important things that you should think about before you make it a “cash deal”.
This is the real problem, you can’t have a written contract with a cash deal. It’s the contract that specifies the work that needs to be done, along with the responsibilities of the homeowner and the contractor as well as proof of insurance. It should also have some sort of mutually agreed completion date so that both parties are comfortable before you proceed with the project. Without this vital document the homeowner is now liable and could be sued should a worker be injured in their home, not to mention you have no warranty or protection against poor workmanship.
Renovating your home should be an exciting and enjoyable experience. I don’t want you to be afraid to renovate after reading this article I just want you to be more aware. As a general contractor I hear time and time again “ I saw it on Holmes on Homes” and the reality is yes these stories are true and really do happen, they happen everyday all around us. However the homeowner took the risk and that is the real problem. We all work hard for our money so spend it wisely, do your research and get it in writing.
The CKHBA together with the rest of the Ontario Homebuilders Association we’re asking the federal and provincial government to step up and create a permanent tax rebate for home renovations of all sizes. This will give homeowners the incentive to use legitimate contractors. RenoMark renovators provide detailed written contracts, warranty and insurance coverage. Be smart, be protected!