A Guide to Becoming a General Contractor in Ontario

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Article Contents
By Vitalii Starov
Updated on May 20, 2025

5 minute read

Article Contentstable-of-contents

A career in the skilled trades industry can be rewarding and lucrative. Construction work is always in demand, especially in cities across Ontario. If you’re interested in entering the construction business, keep reading to learn how to become a general contractor in Ontario.

Becoming a Licensed General Contractor in Ontario at a Glance

  • A general contractor supervises construction projects from start to finish to ensure they are finished on time and according to specifications.
  • General contractors in Ontario need a licence from the Home Construction Regulatory Authority, alongside relevant documents from the municipality they will operate in.
  • General and professional liability insurance are required for contractors, but they can also get other types of protection to cover more risks.

A Step-By-Step Guide to Becoming a General Contractor in Ontario

If you’ve decided to become a general contractor, then you’ll need to know how. Here’s a step-by-step guide to becoming a general contractor in Ontario:

  1. Get a high school diploma or its equivalent.  
  2. Get work experience by working in entry-level trades jobs because most clients want contractors with industry experience.
  3. Develop the management, business, and analytical skills needed to become a general contractor to boost your odds of getting work.
  4. Qualify for the required licences. Ontario-based contractors can get their licences through the Home Construction Regulatory Authority (HCRA). Contractors can apply through the Builder Portal. 
  5. Network and build connections within the industry to grow your name as a contractor.
  6. Learn the Ontario Building Code to ensure you know the applicable rules and standards for construction projects in Ontario.
How to Become a General Contractor in Ontario

Why General Contractors Need to Be Licensed

Working in construction means you may be responsible for the safety of a lot of people, from the construction workers to the people who will use the building later on. A licence demonstrates your competency and compliance with building regulations, showing regulators and potential clients that you know what you’re doing.

What Are the Municipal Differences in Licence Requirements?

If you’re planning to set up a general contracting business in Ontario, note that different municipalities may need different licences and permits. For instance, if you want to set up your business in Toronto, the city requires you to have the relevant Municipal Operating Licence, zoning requirements, and sign permits. After you decide in which city you want to set up shop, research its licence requirements to ensure you’re not breaking any local rules.

What Kind of Business Insurance Does a General Contractor Need?

As a general contractor, you need multiple types of business insurance to protect against risks that may happen on the job. Some of these policies are mandatory for contractors, while some are optional but smart choices. Let’s break it down using the table below. 

What’s Legally
Required		What’s Smart
General liability
insurance		Tools and equipment
insurance
Professional liability
insurance		Installation floater
insurance

Now that you know which policies are mandatory for contractors and which are optional, but smart options regardless, let’s dive deeper and get to know these policies better:

General liability insurance is one of the foundational policies for tradespeople. It’s somewhat similar to personal liability insurance in that it covers any third-party claims involving bodily injury and property damage. Here’s a detailed look at what general liability insurance covers:

  • Medical expenses and legal fees for bodily injury, like if somebody trips and injures themselves in your construction site.
  • Repair or replacement costs for any accidental damage to the client’s property incurred during construction.
  • Legal fees if a third party decides to file a lawsuit against your business.

If you’re a contractor working in Ontario on a project above a certain dollar amount, you need proof of general liability insurance before you gather permits.

Also known as errors and omissions insurance, a professional liability policy protects you from negligence, inadequate work, and mistakes. Here’s what it covers:

  • Financial costs caused by a tradesperson’s negligence, error, or oversight, such as an improperly fixed pipe resulting in a leak that damages the client’s property.
  • Legal fees if clients file a lawsuit against your contracting business for professional errors.

Professional construction groups and unions heavily recommend professional liability insurance to show that your contracting business is safe and trustworthy.

As the name implies, tools and equipment insurance focuses on protecting the tools you work with. Construction equipment is often expensive, so this is a great policy to have. It covers:

  • Replacement costs if your tools are stolen or accidentally lost.
  • Repair or replacement if your tools are damaged.

There’s no legal requirement for contractors to have this type of insurance, but since your tools are usually very valuable, it’s a great policy to have.

Installation floater insurance provides protection for materials during transit, storage, and installation. If you’re working with costly materials or fragile objects, this is a good policy to have. It’s especially useful when you transport, store, and install expensive equipment or objects like HVACs. 

Tips for Setting Up a Contractor Business in Ontario

Even if Canada has a skilled tradespeople shortage, there are many general contractors in Ontario vying for clients’ attention. Here are some best practices when setting up a contractor business in Ontario to ensure your prospective clients know you’re serious about the business.

Hire the Right People

Construction is a team effort, so hiring the right people is one of the most important things you can do as a general contractor. Pick people with the skills necessary to excel in your construction projects. More importantly, pick people you can trust because the people you hire will reflect on your reputation. If they do something undesirable, it’ll make your company look bad.

Build Your Portfolio

Clients want proven, well-tested general contractors because they know people with experience generally deliver better results. That’s why building a portfolio by working under other contractors before striking out on your own is a good idea. That way, you can easily prove that you’re not a newcomer in the construction world.

Make Connections and Build Relationships

One of the best ways to get jobs in construction (and many other industries) is to make connections. Build good relationships with potential clients and other contractors so you stay at the top of their minds and increase your likelihood of getting work from them. You should also build relationships with your current clients so they remember to call you when they need something else built.

Stay Adaptable

Change is constant, and the construction industry is no different. Keep up with the latest developments in the construction industry, like new building practices, material breakthroughs, and newly available technologies. Staying current in your work practices keeps your company in a state of constant development and may even lead to reduced costs due to implementing time and money-saving technologies.

Get Insured

Insurance protects your company, your clients, and potentially the people around you. While general and professional liability policies are mandatory for contractors, it’s a good idea to go beyond. Adding extra policies like tools and equipment, as well as installation floater protection, can further protect your investments and improve client trust.

Why Become a General Contractor in Ontario?

There are many reasons to be a general contractor. One of the strongest reasons to do so is that it’s a lucrative, in-demand field. As of 2024, Canada has seen a shortage in skilled tradespeople, meaning there’s a niche that you can fill to help people and build a profitable contracting business.

If you enjoy hands-on, tangible work, construction may also be good for you. As a general contractor, you can get on the ground floor of construction projects and watch as your handiwork gets completed in front of your eyes. 

Additionally, job security in construction is pretty strong. It’s one of the most resilient sectors because even as people’s needs change, cities will still develop and need people to build them. Becoming a general contractor also means your portfolio is easily visible. You can just point to a building and say, “I built that,” as solid proof of your work.

Key Advice from MyChoice

  • Being a general contractor in Ontario can be a lucrative prospect due to the shortage of skilled tradespeople, meaning contractors are in demand.
  • To become a full-fledged contractor, you can get a licence through the HCRA’s Builder Portal.
  • Different municipalities in Ontario may have different rules, so do your research and get all the relevant licences to operate there.

Congratulations! You made it to the end!

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