Ottawa Contractor Leaves Homeowner $381K Short in Kitchen Renovation Disaster
In a troubling incident involving a renovation project in Ottawa, a couple claims they are $381,000 short after hiring a contractor to remodel their kitchen. Katy Alp and her husband Kaveh Afshar-Zanjani accuse Giuseppe “Joey” Peloso, the owner of Magnolia Design & Build, of delivering substandard work that resulted in significant water damage shortly after completion.
Project Overview and Claims
The couple initially hired Magnolia in 2023, paying a sum of $117,064.80 for the kitchen renovation. Work commenced in March 2024 and was slated to conclude in two months but ultimately stretched to six months due to alleged mismanagement and poor supervision by the contractor.
According to their lawsuit filed in August 2025, the couple describes a harrowing experience when they returned home after a weekend trip to find their kitchen and basement flooded. They claim a faulty plumbing connection had failed, causing extensive damage.
Damages and Lawsuits
In total, they estimate damages at $381,979.02, which encompasses their payment to the contractor, expenses incurred from hiring new contractors, the loss of possessions, and costs for temporary housing during repairs. The lawsuit highlights multiple deficiencies in Magnolia’s work, which allegedly violated the Ontario Building Code.
Peloso, however, refuted these claims, stating he takes client concerns seriously but that legal disputes are not common. He indicated that his firm has successfully completed over 400 renovation projects in the last three years, with most clients satisfied.
Inspection Failures and Deficiencies
After the flood, Alp requested copies of inspection reports from Magnolia, which claimed to have passed the necessary checks with the City of Ottawa. However, Magnolia failed to provide these documents, prompting Alp to seek an independent inspection. This assessment revealed multiple failed inspections and unspecified deficiencies in Magnolia’s renovations.
- Plumbing Underground: Failed
- Plumbing Rough-in: Failed
- HVAC Rough-in: Failed
- Framing: Failed
- Plumbing Final: Failed
- Building Final: Failed
Another alarming discovery involved structurally unsound framing, exposed live wires, and improperly installed ventilation systems. Peloso contended that some issues identified were premature and that his company is cooperating with its insurer to address these matters.
Ongoing Legal Issues
Multiple lawsuits have been filed against Peloso and Magnolia Design & Build by various parties, including customers and subcontractors. Legal representatives note a concerning trend of payment disputes and unresolved grievances connected to the contractor.
Victoria Boddy, a lawyer representing one of the subcontractors, revealed that Magnolia owed her client over $45,000 and had defaulted on payments several times. Peloso acknowledged past mistakes but claimed to have since adopted a higher standard of professionalism.
Contractor Standards and Advice
The couple had initially trusted Magnolia due to its affiliation with the Greater Ottawa Home Builders’ Association (GOHBA) and its RenoMark verification program. However, they later learned that Magnolia’s membership had lapsed in April 2024 due to unpaid fees.
GOHBA’s executive director urged homeowners to ensure clear agreements and schedules when hiring contractors. This advice highlights the need for thorough research and documentation in home renovation projects to protect against potential disputes.
Conclusion
The allegations against Peloso and Magnolia have sparked wider discussions about contractor responsibilities and homeowner rights. As this case unfolds, it serves as a cautionary tale for others considering renovations in Ottawa and beyond.
