Non-paying customers cost Ontario contractors millions in losses every year — but most incidents are preventable with the right process in place. Here’s how to avoid non-paying clients before they cause damage to your business.
Look for signs such as:
- refusal to provide basic info
- inconsistent details
- unrealistic expectations
- bad past contractor history
Tools like RepSavvy help Ontario contractors spot high-risk customers instantly.
Never start a job based on text messages alone.
A contract should outline:
- scope of work
- materials
- payment timeline
- late fees
- change orders
Industry averages in Ontario:
- 20–30% for small jobs
- 40–50% for renovations
- higher for custom work
Deposits filter out risky clients immediately.
Break projects into phases so you’re never financially behind the client.
Keep:
- photos
- invoices
- texts/emails
- proof of payment
- signed contracts
This is crucial in disputes.
Ontario contractors can use:
- Small Claims Court (up to $35,000)
- Construction Act liens
- Demand letters
Avoiding non-paying customers isn’t luck — it’s a process. With the right safeguards, Ontario contractors can greatly reduce financial risk.