When you hire someone to repair or renovate your home, make sure you know what you're getting into. Homeowners who take a "hands-on" role in directing work done on their home may unknowingly cross the line between being a customer and being a contractor. This is particularly relevant if you do some of the work yourself, while hiring workers to complete other parts of your project. If you act as the prime or general contractor on your project, you may be responsible for ensuring that all health and safety regulations are being followed, and that required Workers' Compensation coverage is in place for all workers. If you fail to do this, you may be financially and legally vulnerable in the event of a workplace accident. This risk is very real. In a number of provinces, homeowners acting as their own general contractors have faced substantial fines and penalties after a worker was injured on their property. a Provincial labour laws and health and safety regulations set out standards that apply to all residential construction projects, such as proper use of safety equipment and fall protection. In addition, contractors with employees must be registered with provincial Workers' Compensation programs. While the laws and regulations are not uniform across the country, they generally have these common elements: Health and safety regulations apply any time workers are hired to carry out construction work. Whoever is in charge of the work (the "prime" or "general" contractor) is responsible for making sure these regulations are followed. Homeowners who act as their own general contractor can, under a variety of circumstances, become responsible for workplace safety, even though they are not in the contracting business and are simply having work done on their own home. The likelihood of this happening is greater if the homeowner is supplying some or all the construction materials and is actively involved in directing the work. It increases further if there is no written contract in place between the homeowner and those being hired. In order to avoid potentially serious problems, homeowners need to make sure they understand the rules in their province before any work begins. The best approach is to contact your provincial Labour Ministry or Department and Workers' Compensation program, explain what you are planning, and ask what you need to do to ensure you won't be held responsible in the event of a workplace accident on your property. A written contract is an important part of protecting yourself from worker injury-related risks. At a minimum, the contract should clearly set out the following points: The person or company you are hiring is an independent contractor, not your employee. The contractor acknowledges that they are responsible for meeting all applicable workplace health and safety regulations and Workers' Compensation requirements. The contractor acknowledges that they will carry out the work in accordance with all applicable provincial health and safety regulations. The contractor provides, as part of the contract, a "letter of clearance" from the provincial Workers' Compensation program indicating that they are in compliance with enrollment requirements. Note that in some provinces, self-employed inpiduals with no employees are not required to have Workers' Compensation coverage, while in other provinces all workers must be enrolled. Check with your provincial Workers' Compensation program to find out what rules apply. The best way to reduce the risks related to construction accidents is to sign a contract with a company that complies with health and safety legislation, provides workplace safety training for its employees and ensures that proper safety equipment is in use at all times. Informal hiring practices, particularly "hand-shake" deals with contractors who only work for cash, can too easily end up being a financial disaster for the homeowner. For more information on how to avoid problems when you hire a contractor, visit www.HiringAContractor.com, a consumer information service provided by the Canadian Home Builders' Association.