Running a trade business in Ontario: certification, prompt payment and the 60-day lien clock

Ontario runs the most modernised construction payment regime in North America and one of the strictest trade certification systems in Canada. Here is what electricians, plumbers, HVAC techs and builders need straight in 2026.

Who can do the work

Skilled Trades Ontario administers certification, and for compulsory trades, including electrician, plumber, refrigeration and air conditioning mechanic and sheet metal worker, a certificate of qualification or registered apprenticeship is a legal requirement to work at all. On top of individual certification, an electrical contracting business needs an ECRA/ESA licence held through a designated Master Electrician, gas and fuels work needs TSSA gas technician certification (G3 through G1), and anyone building or selling new homes needs an HCRA builder licence. General renovation contracting has no provincial licence, which is where municipal business licensing and consumer protection rules pick up the slack.

Prompt payment: the 28-day machine

Since the Construction Act reforms, payment in Ontario runs on the proper invoice. Once an owner receives one, they have 28 calendar days to pay or 14 days to deliver a notice of non-payment; contractors must then pay subcontractors within 7 days of being paid, and so on down the chain. Disputes go to adjudication through ODACC, where an adjudicator issues an interim-binding decision in weeks. The regime rewards contractors whose invoices are complete and correctly delivered, because a defective invoice never starts the clock.

Liens: 60 days, then 90

Lien rights must be preserved within 60 days of last supply or completion and perfected by court action within 90 days after that. The 10% statutory holdback the owner retains is the fund your lien mostly targets. The deadlines do not stretch for negotiation, so serious arrears should trigger lien preparation immediately.

WSIB, HST and the rest

WSIB coverage is mandatory in construction, and unusually it captures most independent operators as well as employers, a rule brought in to end the exempt-subcontractor loophole. Ontario charges 13% HST on trade services, and residential customers increasingly check ESA, TSSA and HCRA registries before hiring, so keep your public records clean.

FAQs for Ontario trade businesses

Do I need a licence to be a general contractor in Ontario?

There is no general contractor licence, but the compulsory trades on your crew must hold certificates of qualification, electrical contracting needs an ECRA/ESA licence, and building or selling new homes needs an HCRA licence. The gaps in between are covered by municipal business licensing.

How does prompt payment actually work?

Everything hangs off the proper invoice. Once the owner receives one, they have 28 days to pay or 14 days to dispute it with a notice of non-payment, and money must flow down the chain within 7 days at each step. Disputes go to ODACC adjudication with decisions in weeks, not years.

When do I lose my lien rights?

Sixty days from your last supply or completion to preserve the lien, then 90 more to perfect it with a court action. The clock is short and does not pause for negotiation, so start the paperwork the moment an invoice goes seriously overdue.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.