TABLE OF CONTENTS

1. Basics To Getting Started
2. Industry Overview
3. Regulations
4. Health and Safety
5. Financing
6. Managing Your Operation  
7. Associations
8. Other Resources 

1. Basics to Getting Started

Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Ontario, it is wise to do your research. There are several issues to consider such as regulations, financing, and taxation, managing your business, advertising and much more.

• Business Start-Up Info-Guide
• Financing for Starting a Business Info-Guide
• Taxation Info-Guide
• Employment Regulations Info-Guide

For regulatory or legal questions, it may be useful to contact a lawyer that deals with business regulations through the Law Society of Upper Canada's Lawyer Referral Service.

For further information:
call 1-800-268-8326
visit the website: Law Society of Upper Canada's Lawyer Referral Service

2. Industry Overview

Ontario Smart Growth works with all levels of government, stakeholders and communities to ensure that decisions on public investment help to improve our economic competitiveness, protect and enhance our environment, build liveable communities and create transportation choice.

There are five Smart Growth Zones across the Province of Ontario who are working to develop a Smart Growth Strategy and to provide advice on issues that are a priority in that area.

For further information:
please call 1-866-479-9781

Statistics Canada produces statistics that help Canadians better understand their country, its population, resources, economy, society and culture. The following links provide specific information related to the construction industry.

Construction Survey
(CANSIM II TABLE 034-001)
Collects data for Canada, the provinces and territories on revenues, costs, capital expenditures, labour and type of work for the construction-related industries.

Building Permits Survey
(monthly publication No. 64-001-XIE)
The Building Permits Survey produces data on building construction by municipalities in Canada for both the residential and the non-residential sector. They provide an indication of future construction activity.

Canada E-book (Manufacturing and Construction)
This publication provides statistical information as:

• Value of building permits by type
• Value of all building permits
• New Housing Price Index
• Housing starts
• New Residential construction and existing residential properties
• Housing stocks
• Homeowner expenditures on repairs and renovations

For further information:
visit the website: Statistics Canada

Canada Mortgage and Housing Corporation improves housing, supports the housing market and Canadians by being the key Canadian source of reliable and objective housing information. Housing market information can be easily accessed for domestic and international markets.

Planning Your Business

What is a Business Plan?

A business plan is a recognized management tool used by successful and/or prospective businesses of all sizes to document business objectives and to propose how these objectives will be attained within a specific period of time. It is a written document, which describes who you are, what you plan to achieve, where your business will be located, when you expect to get under way, and how you will overcome the risks involved and provide the returns anticipated.

Why Do I Need One?

A business plan will provide information of your proposed venture to lenders, investors, and suppliers to demonstrate how you plan to use their money, and to establish a basis for credibility of your project. This plan will serve as a guide to the various areas that you as a manager will be concerned with. As you work through this plan, adapt it to your own particular needs.

Business Plans - Templates and Samples

There are many organizations and business websites that provide free templates, writing guides and sample plans. You can also find companies that sell business plan software to assist you in preparing your plan.

3. Regulations

Business Regulations Info-Guide

This document will assist you in navigating federal, provincial and municipal regulations that apply to a number of industries and businesses in Ontario.

For further information:
see the document Business Regulations Info-Guide

Municipal Property Assessment Corporation  administers a uniform, province-wide property assessment system based on current values. The Corporation provides a range of services, including the preparation of annual assessment rolls for use by municipalities and the Province to calculate property taxes and education taxes.

For further information:
please call 1-866-296-6722

Do I need a license to start my own business?

Many types of businesses require licensing from the federal, provincial and/or municipal government. These requirements could include an operating permit, special permission to operate in your chosen location or specific qualifications for you and/or your employees.

For further information:
visit the website: ServiceOntario - Services for Business

Building and Fire Codes

Ontario Building Code and Municipal Building Department

A business location is subject to inspection by the Municipal Building Department to make sure that it meets local safety requirements, such as those designated by the Ontario Building Code and the Ontario Fire Code. Most municipalities require a building permit before alterations or new construction begins. It is extremely important, therefore, that you check zoning regulations before signing contracts, and obtain the necessary building permit before beginning alterations or new construction.

Model National Energy Codes for Buildings and Houses

After extensive consultation with the Provincial-Territorial Committee on Building Standards and provincial and territorial ministries of energy, Natural Resources Canada (NRCan) contributed to the development of model codes for energy efficiency in new houses and buildings to replace the 1983 Measures for Energy Conservation.

When adopted by the provinces and the territories, these model codes will provide economically justified thermal performance levels based on regional construction costs, energy prices and climate. They include both prescriptive and performance-based approaches. Software supporting the optional performance-based compliance paths is available from NRCan.

The model codes were developed by a standing committee under the Canadian Commission on Building and Fire Codes, and were funded by NRCan, the Canadian Electrical Association, the provincial and territorial ministries of energy, and the National Research Council.

For further information:
visit the website: Model National Energy Codes for Buildings and Houses

Warranty Programs

Tarion Warranty Corporation (Formerly the Ontario New Home Warranty Program)
All builders and vendors must be registered with Tarion in order to build or sell homes and condominiums legally in Ontario.

For further information:
please call 1-800-668-0124

R-2000 Home Program

The R-2000 Home Program  encourages the building of energy-efficient houses that are environmentally friendly and healthy to live in. House builders volunteer to build to the R-2000 standard, which exceeds the efficiency level required by building codes and other regulations.

The program has four basic elements:

• development of a voluntary technical standard, which exceeds conventional building practices and codes for energy efficiency, environmental responsibility and indoor air quality;
• building of R-2000 homes by licensed R-2000 professionals;
• promotion of R-2000 homes to the public;
• support for the program by various public/private partners (such as energy utilities, provincial governments, provincial home builder associations, financial institutions and others).

The R-2000 standard is based on an energy consumption target for a house and a series of technical requirements for ventilation, air tightness, insulation, material selection, water use and other factors. Ongoing research ensures that the standard remains at the leading edge of energy-efficient construction technology.

For further information:
please call 416-447-0077

EnerGuide for Houses Program

The EnerGuide for Houses Program  encourages the retrofitting of existing houses that have the potential to become more energy efficient. Qualified contractors deliver the program while Natural Resources Canada partially subsidizes the cost of the evaluation and quality assures the service.

The program has five basic elements:

• Evaluation of a home's energy efficiency using NRCan-developed software and methodology;
• Provision of advice to homeowners on retrofits that can improve the home's energy efficiency;
• Labelling of evaluated homes with an EnerGuide for Houses label, based on a national standard;
• Promotion of EnerGuide for Houses program to the public;
• Support for the program by various public/private partners (such as utilities, environmental organizations, financial institutions and others).

For further information:
please call 1-800-387-2000

Certifications and Specialized Trades

In Ontario, if you are planning to work in a skilled trade you must be issued a Certificate of Qualification by The Ministry of Training Colleges and Universities. A certificate is earned by writing the Provincial Qualification exam. To qualify for the exam the applicant must provide proof that they already have experience in that trade; this would include completion of an apprenticeship contract, or proof of relevant experience as a skilled worker for that trade.

For further information:
Please call 416-325-2929 or 1-800-387-5514

Safety requirements in industry sectors

The Technical Standards and Safety Authority (TSSA) regulate safety in industry sectors such as amusement devices; boilers and pressure vessels; elevating devices; natural gas, petroleum, propane fuels and equipment; operating engineers and upholstered and stuffed articles.

Forms and information regarding licensing and permits can be obtained at the Finance, Administration and Information Services office of TSSA. You may visit the website  Technical Standards and Safety Authority - Services  or call  1-877-682-8772.

Other Certifications and Regulations

The Ministry of Municipal Affairs and Housing is responsible for registering Building Designers, or officials, On-Site Sewage installers, and private inspection agencies.

For further information:
please call 416-585-6666
visit these websites:
On Site Sewage Installers
Trades Qualification and Apprenticeship Act

Contracting with Non-Resident Contractors

Quebec contractors and construction workers are required to register with the Ontario Quebec Construction Labour Mobility  and provide proof of competency and fiscal responsibility before they are able to work in Ontario.

For further information:
please call 613-260-8351 or 1-888-998-9959

Additional Regulations and Acts

Additional regulations and acts that may help construction business owners include, but are not limited to:

• Architects Act
• Condominium Act
• Canadian Environmental Assessment Act
• Canadian Environmental Protection Act

4. Health and Safety

• Occupational Health & Safety Act
• Occupational Health & Safety Regulations for Construction Projects
• Workplace Safety and Insurance Act
• First Aid Regulations
• Fire Protection and Prevention Act
• Employment Standards Act
• Ontario Electrical Safety Code

For further information:
visit the website: Guide to the Occupational Health and Safety Act

Ministry of Labour

The Ontario Ministry of Labour was established to develop and enforce labour legislation. This is done by advancing safe, fair and harmonious workplace practices that are essential to the social and economic well being of the people of Ontario.

For further information:
please call 1-800-268-8013
visit the website: Health and Safety

Electrical Safety Authority

The Electrical Safety Authority  is a not-for-profit organization responsible for public electrical safety in Ontario. Its services include equipment/product approval inspections, wiring inspections, general inspections, continuous safety services and advice and information on the Ontario Electrical Safety Code. Ontario Hydro's Electrical Inspection Division previously delivered these services.

For further information:
please call 1-877-372-7233

5. Financing

Canada Business Ontario has created documents, which provide an overview of some of the main financing options for individuals starting and operating a business in Ontario, including programs offered or supported by the government

For further information:
please call 1-888-745-8888
see these documents:
Financing for Starting a Business Info-Guide
Financing for Established Businesses Info-Guide
Business Guides

6. Managing Your Operation

Dealing with Business Taxes

All businesses must be aware of the various taxes that may apply to their product or service. Depending on the type and location of products or services being offered, federal, provincial and/or municipal business taxes may apply.

For further information:
See the Taxation Info-Guide 

Other Resources:
Ontario Ministry of Revenue: 1-866-668-8297
Small Business Tax Help (MOR)

Canada Revenue Agency: 1-800-959-5525
Canada Revenue Agency (CRA)

Fuel Tax
Ontario has a fuel colouration program which distinguishes clear fuel from coloured fuel. Clear fuel, on which tax has been paid, must be used to operate motor vehicles to which a numbered plate is attached as required under the Highway Traffic Act.

Coloured fuel, on which no tax has been paid, is only to be used for non-taxable purposes such as in unlicensed vehicles. Where auxiliary equipment of a motor vehicle, including plated vehicles, has its own separate fuel tank, coloured fuel should be used as no refund is available if clear fuel is used in those cases.

The Minister of Finance (Ontario) may however, refund the tax paid on clear fuel used to operate auxiliary equipment of a licensed motor vehicle where auxiliary equipment is powered from the running tank, not a separate tank.

Gasoline Tax
A refund of gasoline tax may be claimed by the purchaser who has used gasoline exclusively in equipment or unlicensed motor vehicles for business purposes. If you operate a vehicle that powers auxiliary equipment and the gasoline is coming from the same tank which powers the vehicle, the Minister may refund tax paid on the portion of gasoline used to power the auxiliary equipment.

Bonding and Business Insurance

Bonding and other types of business insurance can protect your enterprise from unpredictable damage and problems. Most businesses that have assets should have insurance protection. It is advisable that you think seriously about the type and amount of insurance that your business requires, and that you deal with a knowledgeable insurance company or broker.

Insurance

Insurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, you may wish to ask other business owners in your area to recommend one.

The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.

Basic insurance:

• fire insurance (extended coverage on buildings and contents);
• liability insurance (depending on the type of business);
• burglary protection (theft coverage);
• dishonesty insurance (covers thefts by employees).

Marketing/Advertising

Word-of-mouth advertising and good public relations are often the best ways of promoting your business. Depending on your market and its size, also consider flyers, business cards, brochures, newspapers (especially for holiday promotions), radio, TV, the phone book and the Internet. Also bear in mind that a satisfied customer is good advertising. Referrals are also a valuable way of making customers aware of your products or services.

A website is also a good marketing tool. It should have details to describe the location (your address, telephone and fax numbers, and directions on how to get to your establishment), hours of operation, services offered, credentials and anything else you think may be of interest to potential customers. However, once you launch a website, you should update it on a regular basis.

Participating in community events is another way of advertising your business. You may also hold events that will promote your business. No matter how you choose to market your business, it is wise to track how your clients became aware of your establishment - this may help determine your future advertising strategies.

The Competition Act governs misleading advertising and deceptive marketing practices for all businesses in Canada. The Act, which is administered by Industry Canada, defines which marketing practices are illegal and the process of complaint investigation.

For more information:
please call 819-997-4282 or 1-800-348-5358
visit the website: Competition Bureau

Market Research

Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your potential clients and competitors is a critical first step in market investigation and development of a marketing plan.

In developing a marketing plan, your primary functions are to understand the needs and desires of your clients, select or develop a service that will meet their needs, develop promotional material that will make them aware and ensure service delivery.

Selecting Professional Services

The use of professional services is essential to the success of a small business. Professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently.

As an entrepreneur, there are four main areas of professional services with which you may consult:

• lawyer (contact a lawyer about legal issues);
• insurance broker;
• accountant;
• banker.

Pay administration is a management tool that enables you to control personnel cost, increase employee morale, and reduce work force turnover.

Setting the right price can influence the quantities of various items that consumers will buy, which in turn affects the total revenue and the profit in the store. In the end, the right price for the product is the price that the consumer is willing to pay for it. Hence, correct pricing decisions are a key to successful retail management.

Basic Bookkeeping

A good record keeping system should be simple to use, easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis.

Note: All staff working with cash should be trained to recognize counterfeit currency.

The legal requirements concerning financial records specify only that there be a permanent, accurate and complete record of your daily income and expenses. There are many types of record books and bookkeeping systems available. For example:

• double entry bookkeeping;
• commercial bookkeeping systems;
• one-write systems;
• computerized systems;
• single entry bookkeeping.

Employing people

What are the rules on working conditions in Ontario?

The Employment Standards Branch of the Ontario Ministry of Labour is responsible for the administration and enforcement of the Employment Standards Act, which provides for minimum terms and conditions of employment in most industries.

For further information:
please call 416-326-7160 or 1-800-531-5551
visit these websites:
Employment Standards Claim
Employee Self Help Kit
see these documents:
Employment Regulations Info-Guide
Employment and Training Assistance Programs Info-Guide

What about hiring someone as a "self-employed contractor"?

Contractors are people who own and operate their own business, and have to remit their own taxes and deductions to the government. For this reason, some businesses feel that dealing with a self-employed contractor is easier than dealing with an employee. However, sometimes the relationship between the business and the contractor is quite similar to the relationship it would have with an employee: the business dictates the hours of work, supplies equipment and tools, directs the tasks to be completed, etc.

If you are planning on hiring an independent contractor you must make sure that they have been issued a Clearance Certificates  from the Workplace Safety and Insurance Board (WSIB). This is a document that is issued free of charge from the WSIB which proves that the contractor is registered with the WSIB and has an account in good standing. This certificate also clears you of any financial responsibility for WSIB payments.

For further information :
please call 1-800-387-5540 or 416-344-1000

Before you hire someone as a self-employed contractor, it is essential to find out if the government considers the relationship to be that of an employer to employee, or of a business to self-employed contractor. If the government feels that you treat the contractor as an employee, you will be responsible for submitting all of the taxes and contributions that apply in an employer-employee relationship.

You may contact the Canada Revenue Agency (CRA) for a ruling on your situation. The CRA has a form called "Request for a Ruling as to the Status of a Worker under the Canada Pension Plan or Employment Insurance Act" (form CPT1). The form can be requested from CRA at 1-800-959-5525.

CRA also has a guide titled "Employee or Self-Employed?" that may help you determine the worker's status.

Training

Apprenticeship in the Construction Sector

For further information:
please call 1-888-JOBGROW or 416-326-5656
visit the website: Locations for Apprenticeship Offices

Construction Safety Association of Ontario offers training, consultation, information, problem solving and research for the construction industry.

For further information:
please call 416-674-2726 or 1-800-781-2726

Electrical and Utilities Safety Association is involved in the development and delivery of training and performance-based injury prevention solutions for the electrical and utilities sectors.

For further information:
please call 1-800-263-5024
visit the website: Electrical and Utilities Safety Association  

Cost Control

You must have procedures for controlling inventory and costs. Ask people in your industry for information about procedures for:

Purchasing - Most of the time, purchasing is done over the telephone, by fax, or online. Therefore, often no contract is signed between the purchaser and the supplier; it is essential that you choose your supplier carefully.

Receiving - Check all deliveries against the Purchasing and Receiving Form, in three ways: quantity, price and quality; packaging should be intact. Make sure specifications are met. Careful recording will show short shipments, price variations and weight differences.

Budgeting and Projecting - Establish a cash budget and maintain cash flow projections on a continual basis.

Storage - Ensure materials are placed in an adequate storage facility maintaining proper ventilation and temperature.

Making a profit is the most important -- some might say the only objective of a business. Profit measures success. It can be defined simply: revenues - expenses = profit. So, to increase profits you must raise revenues, lower expenses, or both. To make improvements you must know what's really going on financially at all times.

Government Procurement

When seeking entry into the government market, and indeed all types of markets, businesses should do their homework and be well prepared. Access to government contracts must rest on a precise appreciation of the target market, a serious assessment of the business' own resources and of its strategic and competitive positioning, and on a structured plan of attack that is consistent with the prior choices made by the company and its goals.

Direct procurement, the use of supplier files, grouping of purchases, publicly advertised tender calls or limited tendering, standing offers - businesses must learn to recognize all of these approaches and decide whether or not to participate in them.

This decision must rest upon a serious evaluation of company resources. Human, physical and technical resources, research and development, supply and production capabilities, possibilities in terms of distribution, delivery and after-sales service will be central to the evaluation of a company's positioning with respect to government contracts.

Procurement Tools

MERX- Electronic Tendering Services

MERX  is an on-line service that advertises government procurement opportunities to potential bidders. It is owned and operated by Mediagrif Interactive Technologies, which provides the service to the federal government under contract.

For further information:
please call 1-800-668-5378

SELECT

SELECT  is a new online procurement tool used to identify firms and individuals for low-dollar value construction, maintenance and real property consulting (architecture and engineering) services. (SELECT replaces PWGSC's previous Real Property contracting systems - SPEC and ACCORD). SELECT is used by Public Works and Government Services Canada (PWGSC) to invite firms to bid on Real Property opportunities for Consulting up to $84 400 and Construction up to $100 000.

For further information:
please call 1-800-668-5378

Federal

Contracting for Services

Every year, the Canadian government contracts for thousands of services from the private sector to satisfy immediate needs or in connection with the purchase of goods. Services being contracted relate either to goods or to intangible services. The end users directly do a sizeable part of service contracting: Special Operating Agencies (SOAs), individual departments and Crown corporations. Public Works and Government Services Canada (PWGSC) only contracts for a portion of all services bought from the private sector by the federal government.

Request for Proposal - RFP

A Request for Proposal (RFP), while generally used for requirements of $25 000 or more, is often employed for purchases where the selection of a supplier cannot be made solely on the basis of the lowest price. An RFP is used to procure the most cost-effective solution based upon evaluation criteria identified in the RFP. Suppliers are usually expected to submit detailed technical, managerial and cost proposals.

Bidding Process

Public Works and Government Services Canada (PWGSC) primarily uses its own databases with information extracted from the Supplier Registration Information (SRI) or the Electronic Tendering Service (MERXTM) to buy on behalf of federal departments and agencies. Federal government departments and agencies have a number of ways to find sources of supply for requirements they handle directly. They can:

• access the Supplier Registration Information service
• refer to publications such as telephone books and trade directories;
• maintain their Source Lists of companies
• publicly advertise their requirements using the Electronic Tendering Service

Registering as a Supplier

Public Works and Government Services Canada (PWGSC) maintains lists of private sector vendors of goods and services used to select suppliers. These lists are still used by PWGSC regional offices for purchases under $25 000 under the area-buy policy.

Supplier Registration Information (SRI)

The Supplier Registration Information (SRI) is a database of registered suppliers. The information provided by suppliers is used by federal government departments to identify sources of supply for the goods and services they buy. By registering in the SRI, the suppliers make their company's name and supply capabilities widely available to federal government buyers.

All suppliers and contractors doing business with Public Works and Government Services Canada (PWGSC) are required to have a Procurement Business Number (PBN) before they can be issued a contract. Firms can obtain their PBN through the Supplier Registration Information (SRI) service.

Standing Offers and Supply Arrangements

Standing Offers and Supply Arrangements are two types of non-binding agreements between the federal government and potential suppliers for the supply of specified goods or services. These agreements outline the terms and conditions that will apply to future requirements to be ordered on an "as and when required" basis.

For further information:
please call 1-800-668-5378

Provincial / Municipal

Selling to the Ontario Government means supplying a large marketplace. Businesses of all sizes and types can be successful vendors to the government.

The Management Board Secretariat, Procurement Policy and IT Procurement Branch (PPITPB) is responsible for the development of the government's procurement policy framework, the preparation of requests for proposals and negotiating and managing government-wide contracts for information and information technology.

PPITPB provides strategic procurement advice, training and services to government ministries and agencies and supports supplier development and the ongoing implementation of Ontario's inter-provincial trade agreements.

• Doing Business with the Government of Ontario

For further information:
please call 416-327-3555

Furnishings and Equipment

There will be certain equipment and furniture you will need in your place of business which will allow you to perform your services. It is suggested to make a list of the required equipment and its cost to you. An important factor to consider, when choosing equipment, is the after-sales service and repair, and their affordability.

Used Equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a convenience store that is closing or dealers in second-hand equipment. The drawback to this approach is that, often, there are no guarantees with the purchase.

Leasing Equipment - Another alternative is to lease equipment to help keep start-up costs down.

Personal Information Protection and Electronic Documents Act

The Personal Information Protection and Electronic Documents (PIPED) Act sets out ground rules for how private sector organizations may collect use or disclose personal information in the course of commercial activities. As of January 1, 2002, the personal health information collected, used or disclosed by these organizations is also covered.

For further information:
please call 1-800-282-1376
visit the website: PIPEDA Guide for Businesses and Organizations

7. Associations

Canadian Home Builders Association  

Canadian Construction Association

Ontario Building Officials Association 

Ontario General Contractors Association

Ontario Construction Secretariat

Council of Ontario Construction Associations (COCA)

Ontario Construction User Council

8. Other Resources

NRC Institute for Research in Construction

The NRC Institute for Research in Construction (NRC-IRC) strives to a leadership position in the development of a quality, cost-effective built environment through services focused on research, innovation and the creation of integrated solutions. Working with public and private sector partners, NRC-IRC addresses issues that have a large economic impact, assisting industry to innovate and develop technologies that are safe, durable and cost-effective.

The Canadian Centre for Housing Technology (CCHT)

The Canadian Centre for Housing Technology is the result of converging mandates from three arms of the Government of Canada: National Research Council Canada, Natural Resources Canada and Canada Mortgage and Housing Corporation. Their common goal is to improve the quality, affordability and environmental sustainability of Canadian housing

Construction Guide Online

Heavy Construction News

Canadian Labour Congress

Related Reading

• Business Guides

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.