What to do when the contractor requests payment before the work is completed
By Léa Plourde-Archer
Updated on February 8, 2025
The contract has been signed, the work has started and all of a sudden, the contractor is asking you to pay. This leads to a lot of questions. Does the contractor have the right to make this request? Can he stop working if you refuse to pay?
In truth, there is no one-size-fits-all answer to these questions and, except for certain specific cases, there is no law governing this aspect.
There are several factors that can affect and provide nuances regarding the way forward. In this article, we will present different scenarios so that you can identify the one that most resembles your case:
Renovation contract: specifications about the payment
If you are asking yourself this question, it is probably due to the fact that you are already in a situation that is leading you to question yourself in that sense. This means that normally, you have signed a contract detailing the work, the total amount payable and the terms and conditions associated with the contract.
Read the contract carefully and pay special attention to the section that deals with the payment. Do you have any details? Did the contractor specify that he wanted to be paid before the work was completed? Ideally, this information should have been validated at the time of signing, but if we’re being realistic, we know that many people do not read the fine print on documents and don’t think about discussing payment terms.
Let's be clear: the contractor does not have the right to request a payment before the end if it has not been stated in the contract you signed. If they do, they must also justify why they require this payment before having fully delivered the goods.
Incomplete contract or verbal contract
In some cases, contracts include very few details, or they may have been formulated verbally. In these situations, the contractor does not have the right to demand a payment. With that being said, it is in your best interest to maintain a good relationship with them if you want them to finish the work (and if you are satisfied so far). You can, therefore, try to negotiate and come to an amicable agreement.
Warning: if you signed your contract under the table, you will not be as easily protected if litigation occurs. There may be ways to prove that there was an agreement if you do have to go to court, but it will be a lot more complicated and you will have a hard time proving what you said.
Recourses if the contractor refuses to complete the work
If the negotiations are not going as planned and the contractor decides to stop the work while waiting for payment, here are some of the recourses available to you:
- Amicable agreement
- Formal notice
- Negotiation
- Small Claims Court
(For more information, see Legal recourses for a poorly executed renovation project)
Do you need help in your efforts or would you like to talk to a lawyer without spending a fortune? Legalhood offers services for writing a formal notice, online negotiation and access to talk to a lawyer on the phone (at a cost of $40 for 15 minutes).
Beware
Be aware that in Quebec, the Loi de protection du consommateur states that the contractor is prohibited from claiming charges that were not provided for in the contract and that they are not entitled to imposing penalties (other than accrued interest).
In addition, if the contract contains a clause stating that the contractor has the right to modify elements within it, note that this clause is not legally valid.
In other provinces, the law may vary. Please consult online resources that present the current laws:
A conclusion and some tools for the future
In most cases, the contractor will wait at the end of the work to request the final payment. This is the ideal situation for you, as it allows you to make sure that the work will be completed to your liking.
On the other hand, if at the moment of signing the contract, you agreed to pay before the end, you will have to respect this clause; otherwise, the contractor could set in motion legal measures.
If you have not signed the contract yet, or in order to be better informed and equipped in the future, here are some articles that could be useful to avoid finding yourself in an uncertain situation:
How to find the right contractor for your renovation project
How your meeting with a renovation contractor should go down
Renovation Quote - How to Create and Submit a Comprehensive One
Note: this text presents options in case a contractor does not fulfil their part of the contract. It does not represent legal advice. For specific advice about your case, talk to a lawyer.
Looking for something else?
Related articles
The latest industry news, interviews, technologies, and resources.
Amanda Harvey
•07 Nov 2023
Regardless if you’re a renovation novice or an expert, a contractor even, the world of building permit requests is tricky to navigate. Of course, if you’ve taken on a renovation project or two, then you’re most likely aware of everything that's of importance, like applying for permits in the first place. In 1976, Ontario established the Building Code Act, to regulate and increase renovation quality control while offering homeowners protection. Therefore, if you’re renovating a structure in the City of Ottawa, you have to determine whether or not a work permit is required.
Christine Simard
•07 Nov 2023
The DIY movement keeps growing every day, especially on YouTube. More and more young adults are taking over the world of easy and creative renovations whilst combining the budgetary aspect, thus respecting the well-known reality of many with regards to budgetary restrictions when renting.
Léa Plourde-Archer
•02 May 2025
Are you renovating your kitchen? This list of kitchen-specific features, characteristics, and price points will help you plan your project and choose what best suits your budget.
Editorial Team
•24 Sep 2024
Do you live in a rural area or have a summer home that isn't connected to a local water system? If so, you probably have a functioning septic system. How can you make sure your conventional on-site disposal system is working properly? What are the best practices to uphold to extend the service life of your sanitary installation and prevent damages? The key to a system's longevity is understanding its inner workings, whether your property is equipped with a conventional or non-conventional system.
Editorial Team
•07 Nov 2023
Facilitating independence and make everyday life at home easier for individuals with reduced mobility or suffering from various other disabilities are desirable lifestyles nowadays. Knowing that people are less and less marginalized and can, with ease, share their real needs with others lends a helping hand to the cause).