|
|
|
|||||||
| Français |  |
Contact Us | |
Help | |
Search | |
Canada Site |
| Home | |
About Us | |
FAQ | |
Site Map | |
Ontario Site |
How to Start a Construction Business in OntarioLast Verified:
2006-08-03
The following document was prepared by the Canada-Ontario Business Service Centre (COBSC) in collaboration with the Ministry of Government Services (MGS). It is designed to provide an understanding of potential license, permit or registration requirements when considering the establishment of a construction business in Ontario. Although many of your questions will be answered in this document, the list of resources given here is not exhaustive. Need more information? Click: Canada-Ontario Business Service Centre Some of the organizations listed below 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. TABLE OF CONTENTS1. Basics to Getting StartedStarting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Ontario, it is wise to do your research. Ask yourself if you are truly suited for entrepreneurship and understand that significant effort may be required. You should thoroughly enjoy the field you are getting into and you must believe in your service; it may consume much of your time, especially in the start-up phase. There are several issues to consider such as regulations, financing, taxation, managing your business, advertising and much more. For further information: 2. Industry OverviewOntario Smart Growth works with all levels of government, stakeholders and communities to ensure that decisions on public investment help to improve our economic competitiveness, protect and enhance our environment, build livable communities and create transportation choice. There are five Smart Growth Zones across the Province of Ontario who are working to develop a Smart Growth Strategy and to provide advice on issues that are a priority in that area. For further information: Statistics Canada produces statistics that help Canadians better understand their country, its population, resources, economy, society and culture. The following links provide specific information related to the construction industry. Construction Survey Building Permits Survey Homeowner Repair and Renovation Survey Canada E-book (Manufacturing and Construction)
For further information: Canada Mortgage and Housing Corporation (CMHC) improves housing, supports the housing market and Canadians by being the key Canadian source of reliable and objective housing information. Housing market information can be easily accessed for domestic and international markets. For further information: CMHC Market Analysis Centre Planning Your BusinessWhat is a Business Plan? Why Do I Need One? For further information: Interactive Business Planner (IBP)The IBP is a computer software program that uses the capabilities of the Internet to assist you in preparing a 3-year business plan for a new or existing business. The IBP will help you write your business plan, provide a format for writing your business plan, and take the information you enter and prepare financial projections for you. For further information: 3. RegulationsExamples of licenses, permits and regulations that could apply to you when starting your construction business may include, but are not limited to: Municipal RequirementsOne area of rules and regulations that all businesses must comply with is that of licenses, permits and regulations. When creating a company, the entrepreneur must contact the municipality involved, along with the provincial government. Each municipal government has the authority to issue its own business licenses within its jurisdiction. Since there is no uniformity throughout the country regarding municipal licenses for businesses, you should consult with the appropriate local officials to determine whether your business will be affected by local regulations and licensing requirements. Businesses (including home-based businesses) must also meet the zoning by-laws that control property uses in their municipalities. For further information: The Smoke-Free Ontario ActAs of May 31, 2006, the Ontario government is prohibiting smoking in all enclosed workplaces and enclosed public places. The legislation will also strengthen measures to ensure only those 19 years of age and older can buy cigarettes and will phase out the display of tobacco products, with a complete ban beginning May 31, 2008. For further information: Municipal Property Assessment Corporation (MPAC) administers a uniform, province-wide property assessment system based on current values. The Corporation provides a range of services, including the preparation of annual assessment rolls for use by municipalities and the Province to calculate property taxes and education taxes. For further information: Do I need a license to start my own business?Many types of businesses require licensing from the federal, provincial and/or municipal government. These requirements could include an operating permit, special permission to operate in your chosen location or specific qualifications for you and/or your employees. For further information: Building and Fire CodesOntario Building Code and Municipal Building Department Model National Energy Codes for Buildings and Houses When adopted by the provinces and the territories, these model codes will provide economically justified thermal performance levels based on regional construction costs, energy prices and climate. They include both prescriptive and performance-based approaches. Software supporting the optional performance-based compliance paths is available from NRCan. The model codes were developed by a standing committee under the Canadian Commission on Building and Fire Codes, and were funded by NRCan, the Canadian Electrical Association, the provincial and territorial ministries of energy, and the National Research Council. For further information: Warranty ProgramsTarion Warranty Corporation (Formerly the Ontario New Home Warranty Program) For further information: R-2000 Home ProgramThe R-2000 Home Program encourages the building of energy-efficient houses that are environmentally friendly and healthy to live in. House builders volunteer to build to the R-2000 standard, which exceeds the efficiency level required by building codes and other regulations. The program has four basic elements:
The R-2000 standard is based on an energy consumption target for a house and a series of technical requirements for ventilation, air tightness, insulation, material selection, water use and other factors. Ongoing research ensures that the standard remains at the leading edge of energy-efficient construction technology. For further information: EnerGuide for Houses ProgramThe EnerGuide for Houses Program 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. The program has five basic elements:
For further information: Certifications and Specialized TradesIn Ontario, if you are planning to work in a skilled trade you must be issued a Certificate of Qualification by The Ministry of Training Colleges and Universities. A certificate is earned by writing the Provincial Qualification exam. To qualify for the exam the applicant must provide proof that they already have experience in that trade; this would include completion of an apprenticeship contract, or proof of relevant experience as a skilled worker for that trade. For further information: Safety requirements in industry sectorsThe Technical Standards and Safety Authority (TSSA) regulate safety in industry sectors such as amusement devices; boilers and pressure vessels; elevating devices; natural gas, petroleum, propane fuels and equipment; operating engineers and upholstered and stuffed articles. Forms and information regarding licensing and permits can be obtained at the Finance, Administration and Information Services office of TSSA. You may visit their Web site at http://www.tssa.org or call (416) 325-2805 . Other Certifications and RegulationsThe Ministry of Municipal Affairs and Housing is responsible for registering Building Designers, or officials, On-Site Sewage installers, and private inspection agencies. For further information: Contracting with Non-Resident Contractors For further information: 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. For further information: Additional Regulations and ActsAdditional regulations and acts that may help construction business owners include, but are not limited to: Architects Act 4. Health and SafetyOccupational Health & Safety Act For further information: Ministry of Labour For further information: Electrical Safety Authority For further information: 5. FinancingThe Canada-Ontario Business Service Centre has created documents, which provide an overview of some of the main financing options for individuals starting and operating a business in Ontario, including programs offered or supported by the government For further information: Canada Small Business Financing ProgramBusiness Financing Program can assist new and existing small businesses with annual gross revenues not exceeding $5 million (excluding farming and charitable or religious enterprises) in obtaining term loans and capital leases of up to $250 000 to help finance fixed asset needs. For further information : Sources of FinancingSources of Financing is an Internet resource for locating traditional and alternative sources of small business financing. This site provides interactive access to objective information on appropriate forms of public and private sector sources of debt and equity financing: For further information: Sources of Micro-Credit Financing"Micro-credit" can be defined as small loans made to individuals to undertake self-employment or to start small businesses. This type of financing may be provided through a number of different sources including independent non-profit organizations, community economic development programs, commercial financial institutions, etc. For further information: 6. Managing Your OperationDealing with Business TaxesAll businesses must be aware of the various taxes that may apply to their product or service. Depending on the type and location of products or services being offered, federal, provincial and/or municipal business taxes may apply. For further information: Fuel Tax Coloured fuel, on which no tax has been paid, is only to be used for non-taxable purposes such as in unlicensed vehicles. Where auxiliary equipment of a motor vehicle, including plated vehicles, has its own separate fuel tank, coloured fuel should be used as no refund is available if clear fuel is used in those cases. The Minister of Finance (Ontario) may however, refund the tax paid on clear fuel used to operate auxiliary equipment of a licensed motor vehicle where auxiliary equipment is powered from the running tank, not a separate tank. For futher information: Gasoline Tax For further information: Income Tax InformationBusiness owners must be aware of the requirements of Income tax that may apply to their product or service. There are different tax implications for incorporated and non-incorporated businesses. For information specific to your organization you should consult an accountant or financial professional. For further information: Below are links to publications that cover some of the general tax requirements for business owners in Ontario. Ontario Small Business Guide EHT Guide for Employers For further information: Retention/Destruction of Books & Records Bonding and Business InsuranceBonding and other types of business insurance can protect your enterprise from unpredictable damage and problems. Most businesses that have assets should have insurance protection. It is advisable that you think seriously about the type and amount of insurance that your business requires, and that you deal with a knowledgeable insurance company or broker. For further information: InsuranceInsurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, you may wish to ask other business owners in your area to recommend one. 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:
Marketing/AdvertisingWord-of-mouth advertising and good public relations are often the best ways of promoting your business. Depending on your market and its size, also consider flyers, business cards, brochures, newspapers (especially for holiday promotions), radio, TV, the phone book and the Internet. Also bear in mind that a satisfied customer is good advertising. Referrals are also a valuable way of making customers aware of your products or services. A Web site is also a good marketing tool. It should have details to describe the location (your address, telephone and fax numbers, and directions on how to get to your establishment), hours of operation, services offered, credentials and anything else you think may be of interest to potential customers. However, once you launch a Web site, you should update it on a regular basis. Participating in community events is another way of advertising your business. You may also hold events that will promote your business. No matter how you choose to market your business, it is wise to track how your clients became aware of your establishment - this may help determine your future advertising strategies. For more information: The Marketing Basics section of the Online Small Business Workshop covers the basics from developing your customer profile to promoting your business. For more information: The Competition Act governs misleading advertising and deceptive marketing practices for all businesses in Canada. The Act, which is administered by Industry Canada, defines which marketing practices are illegal and the process of complaint investigation. For more information: Market ResearchSuccessful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your potential clients and competitors is a critical first step in market investigation and development of a marketing plan. In developing a marketing plan, your primary functions are to understand the needs and desires of your clients, select or develop a service that will meet their needs, develop promotional material that will make them aware and ensure service delivery. For further information: Selecting Professional ServicesThe use of professional services is essential to the success of a small business. Professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently. For further information: As an entrepreneur, there are four main areas of professional services with which you may consult:
Pay administration is a management tool that enables you to control personnel cost, increase employee morale, and reduce work force turnover. For further information: Setting the right price can influence the quantities of various items that consumers will buy, which in turn affects the total revenue and the profit in the store. In the end, the right price for the product is the price that the consumer is willing to pay for it. Hence, correct pricing decisions are a key to successful retail management. For further information: Basic BookkeepingA good record keeping system should be simple to use, easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis. Note: All staff working with cash should be trained to recognize counterfeit currency. The legal requirements concerning financial records specify only that there be a permanent, accurate and complete record of your daily income and expenses. There are many types of record books and bookkeeping systems available. For example:
For further information: Employing peopleWhat are the rules on working conditions in Ontario? For further information: Related LegislationEmployment Standards Act What about hiring someone as a "self-employed contractor"? If you are planning on hiring an independent contractor you must make sure that they have been issued a Clearance Certificate from the Workplace Safety and Insurance Bureau. This is a document that is issued free of charge from the WSIB which proves that the contractor is registered with the WSIB and has an account in good standing. This certificate also clears you of any financial responsibility for WSIB payments. For further information Before you hire someone as a self-employed contractor, it is essential to find out if the government considers the relationship to be that of an employer to employee, or of a business to self-employed contractor. If the government feels that you treat the contractor as an employee, you will be responsible for submitting all of the taxes and contributions that apply in an employer-employee relationship. You may contact the Canada Revenue Agency (CRA) for a ruling on your situation. The CRA has a form called "Request for a Ruling as to the Status of a Worker under the Canada Pension Plan or Employment Insurance Act" (form CPT1). The form can be requested from CRA at 1-800-959-5525 or downloaded at http://www.cra-arc.gc.ca/E/pbg/tf/cpt1/README.html CRA also has a guide titled "Employee or Self-Employed?" that may help you determine the worker's status. The guide can be requested from CRA or accessed at the following Web site http://www.cra-arc.gc.ca/E/pub/tg/rc4110/README.html TrainingApprenticeship in the Construction Sector For further information: Construction Safety Association of Ontario (CSAO) offers training, consultation, information, problem solving and research for the construction industry. For further information: Electrical and Utilities Safety Association is involved in the development and delivery of training and performance-based injury prevention solutions for the electrical and utilities sectors. For further information: Cost ControlYou must have procedures for controlling inventory and costs. Ask people in your industry for information about procedures for: Purchasing - Most of the time, purchasing is done over the telephone, by fax, or online. Therefore, often no contract is signed between the purchaser and the supplier; it is essential that you choose your supplier carefully. Receiving - Check all deliveries against the Purchasing and Receiving Form, in three ways: quantity, price and quality; packaging should be intact. Make sure specifications are met. Careful recording will show short shipments, price variations and weight differences. Budgeting and Projecting - Establish a cash budget and maintain cash flow projections on a continual basis. Storage - Ensure materials are placed in an adequate storage facility maintaining proper ventilation and temperature. Making a profit is the most important -- some might say the only objective of a business. Profit measures success. It can be defined simply: revenues - expenses = profit. So, to increase profits you must raise revenues, lower expenses, or both. To make improvements you must know what's really going on financially at all times. For further information: Government ProcurementWhen seeking entry into the government market, and indeed all types of markets, businesses should do their homework and be well prepared. Access to government contracts must rest on a precise appreciation of the target market, a serious assessment of the business' own resources and of its strategic and competitive positioning, and on a structured plan of attack that is consistent with the prior choices made by the company and its goals. Direct procurement, the use of supplier files, grouping of purchases, publicly advertised tender calls or limited tendering, standing offers - businesses must learn to recognize all of these approaches and decide whether or not to participate in them. This decision must rest upon a serious evaluation of company resources. Human, physical and technical resources, research and development, supply and production capabilities, possibilities in terms of distribution, delivery and after-sales service will be central to the evaluation of a company's positioning with respect to government contracts. Procurement ToolsMERX- Electronic Tendering Services For further information: SELECT For further information: SourceCAN For further information: FederalContracting for Services For further information: Request for Proposal - RFP For further information: Bidding Process
For further information: Registering as a Supplier For further information: Supplier Registration Information (SRI) All suppliers and contractors doing business with Public Works and Government Services Canada (PWGSC) are required to have a Procurement Business Number (PBN) before they can be issued a contract. Firms can obtain their PBN through the Supplier Registration Information (SRI) service. For further information: Standing Offers and Supply Arrangements For further information: For further information: Provincial / MunicipalSelling to the Ontario Government means supplying a large marketplace. Businesses of all sizes and types can be successful vendors to the government. The Management Board Secretariat, Procurement Policy and IT Procurement Branch (PPITPB) is responsible for the development of the government's procurement policy framework, the preparation of requests for proposals and negotiating and managing government-wide contracts for information and information technology. PPITPB provides strategic procurement advice, training and services to government ministries and agencies and supports supplier development and the ongoing implementation of Ontario's inter-provincial trade agreements. Procurement Policy and IT Procurement Branch PPITPB online For further information: Furnishings and EquipmentThere will be certain equipment and furniture you will need in your place of business which will allow you to perform your services. It is suggested to make a list of the required equipment and its cost to you. An important factor to consider, when choosing equipment, is the after-sales service and repair, and their affordability. Used Equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a convenience store that is closing or dealers in second-hand equipment. The drawback to this approach is that, often, there are no guarantees with the purchase. Leasing Equipment - Another alternative is to lease equipment to help keep start-up costs down. To obtain financing for capital leasing for new or used equipment for the creation of your business, see the document Capital Leasing Pilot Project. Personal Information Protection and Electronic Documents Act For further information: 7. AssociationsCanadian Home Builders Association The Ontario Home Builders' Association Canadian Construction Association Ontario Building Officials Association Ontario General Contractors Association Ontario Construction Secretariat (OCS) Council of Ontario Construction Associations (COCA) The Ontario Construction User Council (OCUC) 8. Resources and Web Sites of InterestCanadian Construction Documents Committee (CCDC) Construction Contracting Heavy Construction News The Ontario Federation of Labour Canadian Labour Congress, National Labour Body
DISCLAIMER
Links Policy
|
| Français | Contact Us | Help | Search | Canada Site |
| Last Modified: 2006-08-23 | Important Notices |