Things to do to protect yourself.

I have recieved a lot of advice that you should make sure your contract is very detailed. This is good advice as it makes things easier to argue but it will not prevent your builder from being dishonest.

A detailed contract will make it easier when disputes arise but when it comes down to dealing with fraud the only way to enforce your contract is to hire a lawyer and take your builder to court. This is not the best way to protect yourself.

If you do decide to build a house in a province that has no laws to protect you here are a few things you can do to reduce your risk.

Item 1. Perform background checks. See the helpful hints for checking your builder.

Item 2. With every money draw, make sure your builder signs a statment that says that all work/materials that are included in the draw, make sure they are listed, have been paid for. This way if you get a lien or someone starts hassling you that they have not been paid yet you can pull out the document that says they have been paid. It then either gets paid for by the builder or the police investigate. If the builder did not and will not pay then they will likely get a trip to court on the local law enforcement's dime. 

Item 3. Pay no bills before their time. If your builder is asking for the lockup draw make sure