Final payment is the last meaningful leverage a homeowner has in a contractor relationship. Once you pay, the project is effectively closed — and any issues that surface afterward are significantly harder and more expensive to resolve. That doesn’t mean you should delay payment unreasonably, but it does mean you should be deliberate and thorough before you write that last cheque.

Here’s what to ask — and what to confirm — before you do.

“Final payment is the moment homeowners have the most power and use it the least. I always tell clients: do a proper walkthrough, make a written list of anything that isn’t right, and don’t release the final payment until you have a signed agreement on how those items will be resolved. That list is the only leverage you have left.”

— Eleanor Hsu, licensed home inspector and residential construction consultant with 13 years of experience in pre-purchase and post-renovation inspections across the GTA

Before You Do the Final Walkthrough

Is the project actually complete?

It sounds obvious, but define “complete” before you do the walkthrough. Review the original scope of work in your contract and confirm that every item has been addressed. If there were approved change orders, those should be on the list too. Go in with a written checklist, not a general impression.

Have all permits been closed and inspections passed?

Every permit that was opened during the project needs to be formally closed — that means all required inspections have been passed and the municipality has signed off. Ask your contractor for documentation confirming this before final payment. An open permit on your property can complicate a future sale or refinancing.

For more on this, see: Questions to Ask a Contractor About Permits and Inspections

Have all subcontractors and suppliers been paid?

If your general contractor has not paid their subcontractors and suppliers, those parties may have the right to file a construction lien against your property — even if you’ve paid the GC in full. Before releasing final payment, ask for a statutory declaration from the GC confirming that all subs and suppliers have been paid. For larger projects, consult a lawyer about your obligations under regional construction lien legislation.

For more on this, see: Questions to Ask About Subcontractors Your GC Is Using

Questions for the Final Walkthrough

Can we do a formal walkthrough together before I make the final payment?

Don’t skip this step, and don’t do it alone. Walk through the completed project with the contractor present so that any issues can be discussed and documented in real time. A contractor who resists a final walkthrough before payment is a contractor who knows there are things they don’t want you to find.

Is everything on the original scope of work complete?

Go through the contract scope line by line — not in your head, but on paper. Is the work done? Is it done to the standard described? Are the materials the ones you specified? Small deviations — a different tile grout color, trim that’s not quite flush, a fixture that’s a different model than what you selected — are much easier to resolve before you pay than after.

Are there any items that need to be completed or corrected?

A deficiency list — sometimes called a “punch list” — is a normal part of project completion. It’s a written record of items that are incomplete, incorrect, or below the agreed standard. Create it during the walkthrough, agree on it with the contractor, and tie the final payment to its completion.

What a good answer looks like: A willingness to create and address a deficiency list before final payment, with a clear timeline for each item.

Questions About Warranties and Documentation

What warranties apply to the work, and what do they cover?

Before you pay, confirm what warranties are in place and get them in writing. There are typically two types: a workmanship warranty from the contractor covering defects in how the work was performed, and manufacturer warranties on materials and products installed.

Ask specifically: how long does the workmanship warranty last, what does it cover, how do you make a claim, and what is excluded?

For a full breakdown: Questions to Ask a Contractor About Warranties on Their Work

What a good answer looks like: A written warranty document specifying duration, coverage, exclusions, and the claims process.

Can I have all product manuals, warranty cards, and maintenance instructions?

For every appliance, system, or product installed — HVAC equipment, water heaters, exhaust fans, smart home systems — ask for the manual, warranty card, and any registration information. These documents are important for maintenance, warranty claims, and future buyers of your home.

Can I have copies of all permits and inspection records?

You should receive and keep copies of every permit pulled and every inspection passed during the project. These documents belong to you, are attached to your property, and will be important when you sell, refinance, or make future renovations.

Before You Release the Funds

Is the lien period expired, or should I be holding back a portion?

In many regions and many other Canadian regions, construction lien legislation requires a statutory holdback — typically 10% of each payment — to be retained until the lien period expires (generally 45 days after the project is substantially complete). This protects you if a subcontractor or supplier files a lien after the GC has been paid.

If you haven’t been following the holdback requirements throughout the project, consult a construction lawyer before releasing final payment on a large renovation.

Am I satisfied with the quality of work?

This is the most important question of all — and the one that only you can answer. Take time to look at the finished work carefully and honestly. Are you genuinely satisfied? Is this what you agreed to and what you expected? If the answer is yes, pay promptly — contractors deserve to be paid on time for work well done. If the answer is no, document your concerns in writing and resolve them before the final payment is made.

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