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Engage a drywall contractor as an independent contractor under Canadian law. Includes provincial building code compliance, occupational health and safety requirements, construction lien rights preservation, WSIB/workers’ compensation provisions, workmanship warranty, insurance requirements, GST/HST, and CRA classification guidance.

What Is a Independent Contractor Agreement — Drywall (Canada)?

A Canadian Independent Contractor Agreement for Drywall Services is a contract between a client (property owner or general contractor) and an independent drywall contractor that establishes the terms for performing drywall installation, finishing, repair, or related services. This agreement defines the working relationship as one of independent contracting and sets out the scope of work, compensation, project timeline, regulatory compliance obligations, insurance requirements, and warranty terms under Canadian federal and provincial law.

The Canada Revenue Agency (CRA) uses the four-fold test from the Supreme Court of Canada's decision in 671122 Ontario Ltd. v. Sagaz Industries to distinguish between employees and independent contractors. For drywall contractors, the CRA examines whether the contractor controls how the work is done (methods, sequence, techniques), provides their own tools and equipment, bears financial risk (fixed-price contracts, material waste), and operates independently of the client's business. A drywall contractor who works exclusively for one general contractor, uses the GC's tools, and follows the GC's detailed instructions on methods may be reclassified as an employee.

Drywall work in Canada is subject to extensive regulatory requirements. The work must comply with the National Building Code of Canada and the applicable provincial building code. Each province has occupational health and safety legislation that governs construction work, including requirements for dust control, fall protection, personal protective equipment, and scaffold safety. In Ontario, the Occupational Health and Safety Act and O. Reg. 213/91 (Construction Projects) set detailed requirements. Alberta's Occupational Health and Safety Act and Code, British Columbia's Workers Compensation Act, and equivalent legislation in other provinces impose similar obligations.

Drywall contractors may require trade licences or certificates of qualification under provincial apprenticeship and certification legislation. In Alberta, drywall finisher is a designated trade under the Apprenticeship and Industry Training Act. In Ontario, trades are governed by the Ontario College of Trades and Apprenticeship Act, 2009. Municipalities may also require business licences for construction trades.

The agreement addresses construction lien rights under provincial legislation (such as Ontario's Construction Act or British Columbia's Builders Lien Act), which give contractors the right to register a lien against the property if payment is not received. These lien rights cannot be waived in advance in most provinces, and the agreement should preserve them.

When Do You Need a Independent Contractor Agreement — Drywall (Canada)?

This agreement is needed when a property owner or general contractor engages an independent drywall contractor to perform drywall installation, finishing, repair, texturing, or demolition work. The contractor should operate their own independent business, provide their own tools and equipment, control their own methods and work sequence, carry their own insurance, and maintain the ability to work for other clients.

The agreement is appropriate for residential and commercial drywall projects, including new construction, renovations, repairs, and finishing work. It is suitable for both one-time projects and ongoing service arrangements where the drywall contractor provides services on multiple projects over time.

General contractors who engage drywall subcontractors should use this agreement to clearly define the scope of work, payment terms, timeline, and compliance obligations. The agreement is especially important in construction projects where multiple trades work simultaneously, as it establishes the drywall contractor's specific responsibilities, insurance requirements, and coordination obligations.

The agreement is essential when the project requires compliance with municipal building permits and inspections. The drywall contractor must understand which aspects of the work are subject to inspection (e.g., insulation, vapour barrier, fire-rated assemblies) and coordinate accordingly.

For projects in provinces with prompt payment legislation (such as Ontario's Construction Act amendments effective October 2019), the agreement should address the payment timelines and dispute resolution procedures mandated by the legislation, including the right to refer payment disputes to adjudication.

The agreement should be used whenever the drywall work involves significant financial value, specialized techniques (such as Level 5 finishes, fire-rated assemblies, or soundproofing installations), or any situation where clear documentation of the scope, timeline, and payment terms protects both parties from disputes.

What to Include in Your Independent Contractor Agreement — Drywall (Canada)

The agreement must identify both parties with their full legal names and Canadian addresses. If the drywall contractor operates under a registered business name or as a corporation, this should be specified to support independent contractor classification.

The scope of work section must detail all drywall services to be performed, including installation, taping, mudding, sanding, texturing, insulation, soundproofing, and demolition as applicable. The project location must be specified with full address. The materials and equipment clause should identify which party supplies materials (gypsum board, joint compound, tape, screws, corner bead) and which party supplies tools and equipment.

The regulatory compliance clause is critical for construction contracts. It must require the contractor to comply with the National Building Code of Canada, the applicable provincial building code, provincial occupational health and safety legislation, and municipal permit requirements. The contractor should represent that they hold all required trade licences or certificates of qualification.

Compensation provisions must specify the payment structure (fixed fee, hourly rate, or per square foot), the amount in Canadian dollars, and the payment schedule. Construction services are subject to GST/HST, and the contractor must charge the applicable rate if registered. The agreement should note holdback requirements under provincial construction lien legislation.

The insurance clause should require the contractor to maintain general commercial liability insurance (typically CAD $2,000,000 minimum), workers' compensation coverage (WSIB in Ontario or equivalent provincial coverage), and, if applicable, professional liability insurance. The contractor should provide proof of coverage upon request.

The workmanship warranty clause should specify the duration of the warranty and the contractor's obligation to correct defective work at no additional cost. The lien rights preservation clause should confirm that nothing in the agreement waives the contractor's statutory lien rights under the applicable provincial Construction Lien Act or Builders' Lien Act.

The independent contractor status clause must address each element of the CRA's four-fold test: the contractor controls the methods, techniques, and sequence of work; the contractor provides their own tools and equipment; the contractor bears financial risk; and the contractor operates independently with the ability to work for multiple clients.

Frequently Asked Questions

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