What should a proper renovation contract include in New Brunswick to protect both sides?

A proper renovation contract in New Brunswick should be a detailed written agreement that protects both homeowner and contractor from disputes, delays, and financial issues. Under New Brunswick's Construction Remedies Act (which replaced the old Mechanics' Lien Act in 2021), clear contracts are your best defense against liens and payment disputes.

Essential Contract Elements

Start with the basics: full legal names, addresses, and contact information for both parties. Include the contractor's business registration number and WorkSafeNB account number — this is mandatory for any contractor with 3+ workers. Verify their WorkSafeNB coverage is current at worksafenb.ca or call 1-800-999-9775 before signing anything.

The scope of work section needs to be exhaustively detailed. Don't accept vague language like "kitchen renovation" — specify every component: cabinets (brand, model, finish), countertops (material, thickness, edge profile), flooring (type, grade, installation method), electrical work (new outlets, lighting fixtures), plumbing changes, and paint colors. Include what's specifically excluded to avoid scope creep disputes later.

Permits and Code Compliance

Clearly state who obtains permits and pays associated fees. In New Brunswick, building permits come from your municipality (if you're in an incorporated area like Moncton, Saint John, or Fredericton) or your Regional Service Commission if you're in a rural area. The contract should specify that all work will comply with the National Building Code of Canada 2020 edition (effective May 1, 2025 for new applications in NB).

For electrical work, note that NB Power issues wiring permits province-wide (1-800-615-0522), and TIS (Technical Inspection Services) handles final inspections. Licensed trades are required for electrical, plumbing, and gas work — your contract should confirm the contractor holds proper licensing through TIS (1-888-659-3222).

Financial Protection and Payment Terms

Never pay large sums upfront. A reasonable payment schedule might be 10% to start, then payments tied to completion milestones — 25% after demolition and rough-in, 25% after drywall and priming, 25% after installation of major fixtures, and final 15% after completion and cleanup. Under the Construction Remedies Act, contractors can lien your property for unpaid work, but a fair payment schedule protects both sides.

Include a total contract price with allowances clearly defined. If you've budgeted $8,000 for flooring but selected $12,000 materials, specify who pays the difference. Build in a contingency allowance (typically 10-15%) for unexpected issues — especially important in older New Brunswick homes where you might discover knob-and-tube wiring, asbestos, or structural surprises.

Timeline and Change Management

Set realistic timelines accounting for New Brunswick's climate. Exterior work is limited to roughly May through September, and material deliveries to rural areas can face winter delays. Include weather delay provisions and specify how change orders will be handled — any scope changes should require written approval with updated pricing and timeline impacts.

Material and Warranty Specifications

List specific materials, brands, and grades. In New Brunswick's harsh climate, exterior materials face freeze-thaw cycles, coastal salt air (in areas like Saint John and Shediac), and heavy snow loads. Your contract should specify appropriate materials for local conditions — for example, galvanized fasteners in coastal areas or proper snow load ratings for roofing.

Include warranty terms for both labor (typically 1 year) and materials (varies by manufacturer). Note that New Brunswick's Atlantic Home Warranty Program is voluntary, unlike Ontario's mandatory Tarion coverage.

Insurance and Liability

Verify the contractor carries liability insurance (minimum $2 million recommended) and include their policy details in the contract. Confirm WorkSafeNB coverage — if they're not covered and get injured, you could be liable. For larger projects, consider requiring the contractor to obtain a completion bond.

Dispute Resolution

Include a dispute resolution clause specifying how conflicts will be handled — mediation first, then arbitration or Small Claims Court (handles disputes up to $20,000 in NB with filing fees of $50-$100). Major disputes go to the Court of King's Bench of New Brunswick.

The contract should be signed by all parties with witnesses. Keep copies of all permits, inspection certificates, and material receipts. A well-drafted contract prevents most disputes and provides clear recourse when issues arise — it's worth having a lawyer review contracts over $25,000.