What does a proper renovation contract look like in New Brunswick?

A proper renovation contract in New Brunswick should be a detailed, written agreement that protects both you and your contractor while ensuring compliance with provincial laws. Under New Brunswick's Construction Remedies Act (which replaced the old Mechanics' Lien Act in 2021), written contracts are essential for protecting your property from potential liens and ensuring clear payment terms.

Essential Contract Elements

Your contract must include complete contact information for both parties, including the contractor's business registration number and WorkSafeNB account number. In New Brunswick, any contractor with 3 or more workers must carry WorkSafeNB coverage - verify this before signing anything. The scope of work should be detailed enough that another contractor could complete the project using your contract as a guide.

Include specific material specifications, not just "standard grade" or "contractor's choice." For example, specify "Owens Corning R-20 batt insulation" rather than just "insulation." This prevents disputes and ensures you get what you're paying for. Timeline details should include start date, substantial completion date, and any milestone dates for key phases like rough-in inspections.

Payment Structure and Lien Protection

Never pay large amounts upfront - New Brunswick's Construction Remedies Act allows contractors to place liens on your property for unpaid work. Structure payments tied to completion milestones: typically 10% down, progress payments at 25%, 50%, and 75% completion, with 10-15% held back until final completion and lien period expiry (45 days after substantial completion).

The contract should specify who obtains permits and pays permit fees. For major renovations requiring building permits from your municipality or Regional Service Commission, ensure the contractor will pull permits in their name and provide copies. Remember that electrical work requires both a building permit AND a separate wiring permit from NB Power (1-800-615-0522), plus final inspection by Technical Inspection Services.

Change Orders and Code Compliance

Include a detailed change order process - any modifications to the original scope must be in writing with adjusted pricing and timeline impacts. This is crucial because renovation projects often uncover unexpected issues like outdated wiring or structural problems requiring additional work.

Your contract should explicitly state that all work will comply with the National Building Code of Canada 2020 edition (New Brunswick's adopted code, effective May 1, 2025 for new applications). For energy efficiency upgrades, specify whether work will meet current code minimums or higher performance standards like those required for NB Power rebates.

Insurance and Warranty Terms

Verify the contractor carries adequate liability insurance ($2 million minimum recommended) and provide a certificate of insurance. Include warranty terms - typically one year for workmanship, with manufacturer warranties on materials passing through to you. For specialized work like roofing or HVAC, longer warranties (5-10 years) are common.

Dispute Resolution

Include a dispute resolution clause specifying mediation before litigation. New Brunswick's Court of King's Bench handles major construction disputes, while Small Claims Court covers disputes up to $20,000 (filing fees: $50 for claims under $3,000, $100 for $3,000-$20,000).

Red Flags to Avoid

Never sign contracts requiring full payment upfront, lacking specific material details, or missing permit responsibilities. Door-to-door contractors demanding immediate signatures should be avoided entirely. Legitimate contractors will encourage you to take time reviewing contracts and won't pressure immediate decisions.

For complex projects over $50,000, consider having a lawyer review the contract before signing. Browse verified contractors who understand proper contracting practices in our New Brunswick Construction Network directory.

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