Can a subcontractor sue me directly if the general contractor doesn't pay them?

Yes. Under Ontario's Construction Act, subcontractors and suppliers have the right to register a lien against your property — even if you have paid your general contractor in full. To protect yourself, request a statutory declaration confirming all subs and suppliers are paid before releasing your final payment, and always exercise your right to hold back 10% of each progress draw.

Do I need to verify a subcontractor's licence, or is that the GC's job?

Technically the general contractor is responsible for hiring qualified tradespeople, but you bear the consequences if something goes wrong in your home. Before work begins, ask your GC to confirm that any electricians hold valid ESA licences, gas technicians hold TSSA credentials, and skilled tradespeople hold Ontario College of Trades certificates. A trustworthy GC will have no problem providing this information.

Does a subcontractor need their own WSIB coverage?

Yes, any worker or independent contractor performing work on your property should have either their own WSIB coverage or be covered under the general contractor's WSIB account. Ask for a WSIB clearance certificate — it's a free document available from the WSIB website — before allowing any work to begin, as homeowners can be held liable for workplace injuries involving uninsured workers.

Is HST charged differently when a subcontractor is involved?

From your perspective as the homeowner, HST at 13% applies to the full invoice amount you pay your general contractor — regardless of how many subcontractors are involved behind the scenes. The GC is responsible for their own HST obligations with their subs. Be cautious of any contractor offering a cash deal to avoid HST, as this can expose you to liability and potentially void your homeowner's insurance.

What if I want to hire a plumber or electrician directly instead of through a GC?

You can hire licensed tradespeople directly for specific, self-contained scopes of work — for example, having a TSSA-licensed plumber replace a water heater. In that case, the tradesperson becomes your direct contractor and you assume the homeowner responsibilities for that scope, including confirming permits and WSIB coverage. For larger, multi-trade projects, working through a qualified general contractor is generally safer and less complicated.

Contractor vs. Subcontractor in Ontario: What Every GTA Homeowner Needs to Know (2026)

When you hire someone to renovate your kitchen, finish your basement, or rewire your home, you might assume one company handles everything from start to finish. Often, that's not how it works. Most home improvement projects in the GTA involve both a general contractor and one or more subcontractors — and understanding the difference between them can save you real money, protect your legal rights, and help you avoid some of the most common renovation headaches Ontario homeowners face.

What Is a General Contractor?

A general contractor (sometimes called a "GC" or simply "the contractor") is the professional you hire directly. They are your single point of contact for the entire project. Their core responsibilities typically include:

Developing the overall project scope and timeline
Pulling required building permits from your local municipality
Hiring and coordinating all the specialist tradespeople needed
Managing the day-to-day work on site
Ensuring the finished work meets Ontario Building Code requirements

Your contract — and your legal relationship — is with the general contractor. If something goes wrong, they are your first point of accountability. A reputable GC carries their own WSIB (Workplace Safety and Insurance Board) coverage and general liability insurance, and they should be willing to provide both before work begins.

What Is a Subcontractor?

A subcontractor is a licensed tradesperson or specialist company hired by the general contractor — not by you — to complete a specific portion of the work. Common subcontractors on a GTA renovation might include:

An electrician licensed under the Electrical Safety Authority (ESA)
A plumber or gas technician regulated by the Technical Standards and Safety Authority (TSSA)
A heating and cooling (HVAC) technician
A drywaller, tile setter, or flooring installer registered with the Ontario College of Trades (OCOT)
A roofer or insulation contractor

The subcontractor's legal relationship is with the general contractor, not with you. You typically won't sign a contract with them, and in most cases you won't pay them directly. That said, what subcontractors do inside your home absolutely affects you — so their credentials and compliance with Ontario regulations matter just as much.

Why the Distinction Matters for GTA Homeowners

1. Payment and the Construction Act

Ontario's Construction Act gives subcontractors the right to place a lien on your property if they are not paid — even if you've already paid your general contractor in full. This is one of the most important and misunderstood risks in any renovation. To protect yourself, consider using a statutory declaration (a signed statement from your GC confirming all subcontractors and suppliers have been paid) before you release your final payment. Many GTA homeowners are unaware of this risk until they receive a lien notice.

2. Licensing and Verification

Because subcontractors are engaged by the GC, homeowners don't always know who is showing up at their door or whether those individuals hold valid licences. In Ontario, certain trades carry strict licensing requirements. Electrical work must be performed by an ESA-licensed electrician, and all electrical permits must be filed with the ESA. Gas work requires a TSSA-licensed technician. Skilled trades such as plumbers and electricians must hold certificates of qualification under the Ontario College of Trades framework. When hiring a general contractor, ask directly: Who are your subcontractors, and can you confirm their licences and WSIB clearance certificates?

3. HST Responsibilities

In Ontario, HST is charged at 13%. A registered general contractor will collect and remit HST on the full value of your project. Subcontractors typically invoice the GC (not you), and the GC folds those costs into your overall quote. If someone offers to do work for cash with no HST, that is a red flag — it often signals unregistered, uninsured work that could void your homeowner's insurance and create significant liability.

4. Liability and Insurance

If a subcontractor is injured on your property and the GC hasn't confirmed WSIB coverage, you as the homeowner could potentially be held liable. Always request a WSIB clearance certificate for both the general contractor and, where possible, any known subcontractors before work begins. This is a free document the GC can obtain directly from the WSIB website.

When You Might Hire a Subcontractor Directly

Sometimes homeowners act as their own general contractor — managing multiple tradespeople themselves for smaller projects. In this scenario, each tradesperson you hire directly becomes your contractor (not a subcontractor), and all the responsibilities of the GC role fall to you: coordinating permits, managing timelines, and carrying the liability for payment and compliance. This approach can reduce costs but requires significant time, knowledge of Ontario's Building Code, and comfort navigating municipal permit processes across GTA municipalities like Toronto, Mississauga, Brampton, or Markham, each of which has its own building department.

How to Protect Yourself on Any GTA Renovation

Always sign a written contract with your general contractor that names any known subcontractors
Request WSIB clearance certificates and proof of liability insurance before work starts
Ask for ESA, TSSA, or OCOT licence numbers for licensed-trade work
Use a holdback: Ontario's Construction Act entitles owners to hold back 10% of each progress payment until the lien period expires
Confirm that all required permits are pulled in your name or the GC's name — never skip this step

Understanding the contractor–subcontractor relationship puts you in a far stronger position as a homeowner. The more informed you are before signing anything, the less likely you are to face surprise liens, unlicensed work, or disputes that are difficult and expensive to resolve.