How to Start a Construction Business in Ontario

TABLE OF CONTENTS

1. Introduction
2. Basics to Getting Started
3. Regulations
4. Taxation
5. Financing
6. Managing your Operation
7. Associations
8. Next Steps

1. INTRODUCTION

The construction industry in Ontario is a dynamic, competitive sector that can offer both opportunities and challenges to entrepreneurs choosing to start their own construction business. From general contracting to highly specialized restoration, there are many different kinds of construction businesses. Before starting your business, think about the types of construction services your company will provide. Based on your services, there are several steps you will need to take in order to start your business.

2. BASICS TO GETTING STARTED

Before starting a business in Ontario, there are several issues to consider, such as regulations, financing, and taxation. Read our start-up guide to learn the basics.

Read Online:
Business Start-Up Info-Guide

3. REGULATIONS

Your business may need licences and permits from the federal, provincial, and municipal levels of government.

In addition to the information you will find in this guide, you can use BizPaL—an online search tool—to find licences and regulations that may affect your business. You can also contact the Business Info Line to speak to someone about starting your business.

Use Online:
BizPaL

Contact the Business Info Line:
1-888-745-8888

Construction and skilled trades are highly regulated. Some common regulations that could apply to your business include:

Industry Regulations and Safety

• Certifications and Specialized Trades
  In order to legally work in certain skilled trades in Ontario, you must have a Certificate of Qualification, which certifies that you have completed the necessary apprenticeship and/or on-site training requirements for your trade.
  
  Contact the Ministry of Training Colleges and Universities:
  1-800-387-5514
  Trade Certification
   
• Electrical Safety
  When working with electricity, consult the Electrical Safety Authority (ESA), a not-for-profit organization responsible for public electrical safety in Ontario. The ESA provides continuous safety services and advice, equipment/product approval inspections, wiring inspections, general inspections, and information on the Ontario Electrical Safety Code.
  
  Contact ESA:
  1-877-372-7233
  Electrical Safety Authority
   
• Technical Standards and Safety
  Your construction work must comply with the regulations and standards set out by the Technical Standards and Safety Authority (TSSA). Contact TSSA if you are an operating engineer, or if your construction project will include amusement devices; boilers and pressure vessels; elevating devices; natural gas, petroleum, propane fuels and equipment; or upholstered and stuffed articles.
  
  Contact TSSA:
  1-877-682-8772.
  Technical Standards and Safety Authority - Services

Building and Fire Codes

• Model National Energy Codes for Buildings and Houses
  If you are involved in the construction of new buildings, you will have to ensure that they meet Canada’s energy efficiency requirements.
  
  Read Online:
  Model National Energy Codes for Buildings and Houses
   
• Ontario Building Code
  Your new construction project and your workers are required to meet the regulations and standards outlined by The Ontario Building Code. Your business will need to meet standards such as safety, environmental, and technical standards for any construction in Ontario.
  
  Contact the Building and Development Branch of the Ministry of Municipal Affairs and Housing:
  416-585-6666
  Ontario Building Code

Warranty and Energy Efficiency Programs

• New Home Warranties
  If your business will be involved in the construction or sale of new homes or condominiums, you must be registered with the Tarion Warranty Corporation. 
  
  Contact the Tarion Warranty Corporation:
  1-800-668-0124
  Tarion Warranty Corporation
   
• EnerGuide for Houses Program
  You may choose to take part in the EnerGuide program which 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.
  
  Contact the Office of Energy Efficiency:
  1-800-387-2000
  EnerGuide for Houses Program
   
• R-2000 Home Program
  If you want to build energy-efficient houses that are environmentally friendly, you may be interested in the R2000 Home Program. The program is a voluntary standard administered by Natural Resources Canada that encourages you to use cost-effective energy-efficient building practices and technologies.
  
  Read Online:
  R-2000 Home Program

Labour Regulations and Workplace Safety

• Independent Contractors
  If you hire an independent contractor to work with your business, you must make sure that they have been issued a Clearance Certificate from the Workplace Safety and Insurance Board (WSIB). The certificate is issued free of charge and proves that the contractor is registered with the WSIB and has an account in good standing. The certificate also clears you of financial responsibility for WSIB payments.
  
  Contact WSIB:
  1-800-387-0750
  WSIB Clearance Certificates
   
• Occupational Health and Safety
  You and your employees have the right to safe working conditions. Learn about the health and safety rules and regulations that will apply to your business by contacting the Ontario Ministry of Labour.
  
  Contact the Ministry of Labour:
  1-800-268-8013
  Health and Safety
   
• Contracting with Quebec Contractors
  If you plan to hire contractors or workers from Quebec, you will need to ensure that they are registered with the Ontario Ministry of Labour’s Jobs Protection Office. Quebec contractors and construction workers are required to register with the Jobs Protection Office and provide proof of competency and fiscal responsibility before they are able to work in Ontario.
  
  Contact the Jobs Protection Office:
  1-888-998-9959
  Jobs Protection Office

If you have legal questions, contact a lawyer who deals with business regulations. The Law Society of Upper Canada's Lawyer Referral Service may be able to assist you in finding a lawyer, based on your needs.

Contact the Law Society of Upper Canada:
1-800-268-8326
Law Society of Upper Canada's Lawyer Referral Service

4. TAXATION

Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.

Read Online:
Taxation Info-Guide

If you sell goods and services in Ontario, you may need a business number to charge and remit the Harmonized Sales Tax (HST). Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA:
1-800-959-5525
Canada Revenue Agency – Business

5. FINANCING

There are many different ways to finance your business. Canada Business can help you find government financing that is available for starting a business.

Search Online:
Find Government Grants, Loans and Financing

Contact the Business Info Line:
1-888-745-8888

6. MANAGING YOUR BUSINESS

The success of any business starts by setting goals and managing the ups and downs of daily operations. Here are some key factors to consider when starting a construction business.

Marketing/Advertising

Marketing can help you determine the value of your product or service and communicate that information to customers. Depending on your market and its size, you can consider using flyers, business cards, brochures, newspapers, radio, TV, the phone book or the Internet. Keep in mind, a satisfied customer or a positive referral is often the best form of advertising.

Read Online: 
Developing a Marketing Plan 
Marketing and Sales

When preparing your marketing and/or advertising material, there are regulations to follow. When you promote a product or service, your customers need to have enough information to make informed choices. You can get more information on advertising requirements from the Competition Bureau.

Contact the Competition Bureau:
1-800-348-5358
Misleading Advertising and Labelling

Setting the Right Price

Setting the right price is important in ensuring the success of your business. Here are a few questions you may want to consider:

• What is the current price for your range of services in the industry?
• What is your competition charging?
• What is the total cost of running your business?
• What is the minimum acceptable profit you need to generate from your business?

When determining your fees, make sure you include the cost of your labour, the overhead, and the expenses that will be incurred.

In the end, the right price for the service is the price that the consumer is willing to pay. Correct pricing decisions are often key to successful business management.

Read Online:
Pricing

Negotiations 

Negotiating is part of doing business. You negotiate with suppliers, distributors and customers. Good negotiations can lead to prosperity, while bad negotiations can damage your business profitability. Before you start your business you may want to learn about negotiating.

Read Online:
Negotiations

Professional Services

The use of business support services can be essential to the success of a small business. Professionals can provide knowledge and expertise to ensure your business is operating efficiently.

As an entrepreneur, there are several types of professional business services you can consult:

• Lawyers
• Real estate agents
• Insurance brokers
• Bookkeepers
• Accountants

Insurance

Having the correct business insurance can provide peace of mind. Contact an insurance agent to discuss your business insurance options, or to develop a plan that is right for your business.

You may also wish to contact your local chamber of commerce or industry association, as some organizations offer members lower rates on their business insurance.

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
• Burglary protection (theft coverage)
• Dishonesty insurance (covers thefts by employees)

Read Online:
Insurance for Your Small Business

7. ASSOCIATIONS

There are many associations that may be of interest to a construction business. It is not necessary to join an association, but some of the advantages include:

• Promoting and exchanging marketing and promotional ideas among members
• Establishing and encouraging high standards of quality and professionalism

Examples of associations for a construction business include:

• Canadian Construction Association (CCA)
  If you choose to specialize in non-residential construction and would like to access shared information and resources, you may be interested in CCA membership. CCA aims to be the national voice for the Canadian construction industry.
  
  Contact CCA:
  1-613-236-9455
  Canadian Construction Association
   
• The Canadian Home Builders Association
  If you are building new homes, you may choose to become a member of the Canadian Home Builders Association, an organization that aims to represent and serve the interests of the home construction industry throughout Canada
  
  Contact the Canadian Home Builders Association:
  1-613-230-3060
  Canadian Home Builders Association
   
• Health and Safety Ontario (HSO)
  HSO can help you with training, consultation, information, problem solving and research related to safety for you and your employees.
  
  Contact HSO:
  1-800-781-2726
  Health and Safety Ontario
   
• Infrastructure Health and Safety Association (IHSA)
  You and your workers may consider working with the IHSA to eliminate occupational injury and illness in the construction, electrical, natural gas, ready-mix concrete, transportation, and utilities industries.
  
  Contact IHSA:
  1-800-263-5024
  Infrastructure Health and Safety Association
   
• OntarioConstruction Secretariat (OCS)
  If you will be working with unionized workers, you may wish to look into the OCS. The OCS promotes and represents Ontario’s unionized industrial, commercial, and institutional construction industry.
  
  Contact OCS:
  1-888-878-8868
  Ontario Construction Secretariat
   
• Ontario General Contractors Association (OGCA)
  If you are looking for webinars, networking opportunities, education opportunities, advocacy and representation within the construction industry, you may be interested in joining the OGCA
  
  Contact the OGCA:
  905-671-3969
  Ontario General Contractors Association

8. NEXT STEPS

For other information that relates to starting your business, you can read the following guides:

• Business Planning
• Market Research and Statistics
• Starting Your Business
• Grants and Financing
• Taxation Guide
• Employment Regulations Guide: Hiring

Additional resources that may be of interest to construction business owners include:

• NRC Institute for Research in Construction (NRC-IRC)
• Canadian Centre for Housing Technology

You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us through the Business Info Line at 1-888-745-8888.

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.