Change orders on a Kanata floor job, how should they work?

How change orders work on a commercial floor job in Kanata is set mostly by your contract, so get every scope change in writing, priced and signed, before the extra work happens. Ontario's Construction Act sets the payment rules around it; get legal advice on how they apply to your contract.

How the Construction Act shapes change orders

Under the Construction Act, a contractor may submit a proper invoice monthly (or as the contract specifies), and the owner must pay it within 28 days of receiving it. If the owner disputes an amount, including a change-order amount, it must issue a notice of non-payment in the prescribed form within 14 days of receiving the invoice, with reasons. Each payer must also retain a 10 per cent holdback of the price of services and materials as supplied (s.22(1)).

If a dispute about a change order cannot be resolved, either party may refer it to adjudication under the Construction Act, provided the referral happens no later than 90 days after the contract is completed, abandoned or terminated, unless both parties agree to a later date. Get legal advice before that clock runs out.

A contractor's lien expires 60 days after the earlier of publication of substantial performance or the contract being completed, abandoned or terminated, unless it is preserved (s.31(2)).

On a floor coating job, scope items the contractor could not see until the floor was opened up can turn into change orders: worse slab damage than expected, a moisture test result that calls for a different primer, old adhesive or tile that needs removal, or a cove base run that was not in the original quote. A written change order for each of those, signed before the extra work starts, keeps the payment timeline and the holdback calculation clean.

A few other points worth confirming before you sign the original contract:

• Ask whether the contract defines how change orders are priced: time and materials, a fixed unit rate, or a new lump sum. The Act does not set that; the contract does.
• If the total project cost (original plus changes) is expected to exceed $50,000 in labour and materials, O. Reg. 213/91 s.6(1) requires the constructor to file a notice of project with the Ministry of Labour. The constructor files it, but the owner should confirm it has been done.
• Before any work begins, obtain a WSIB clearance certificate for the contractor and keep it on file. WSIB policy 14-02-19 says the clearance must remain in effect throughout the work. Without one, the owner may be liable for the contractor's WSIB payment obligations up to the value of the labour portion of the contract.
• Ask for proof of liability insurance as well, and keep a copy.

When you receive quotes for this job, ask each contractor to spell out exactly which line items are excluded from the base price and would come back as a change order, because prep and grinding costs are one place where the final number can move well beyond the original figure.