Must a block foundation in Ottawa be parged before a membrane goes on?

Yes. Ontario's Building Code requires at least 6 mm of mortar parging on the exterior face of a masonry wall below ground, coved over the footing, before dampproofing or waterproofing is applied (clauses 9.13.2.3 and 9.13.3.3). That requirement applies to block foundations specifically; poured concrete walls have a different rule, which is that holes and recesses must be sealed before the membrane goes on.

Waterproofing must also be continuous across joints and at junctions between building elements, and protected from damage during backfilling (9.13.3.4).

The Code distinguishes dampproofing from waterproofing at clause 9.13.3.1: waterproofing is required where hydrostatic pressure occurs, and dampproofing is required where the finished ground outside is higher than the ground level inside the foundation walls (9.13.2.1). The Code gives no number or test for when hydrostatic pressure occurs, so the contractor inspecting your foundation is the one who should tell you which the quote covers and why. Both require the parging step on a block wall.

A couple of things worth confirming with any contractor quoting this work: ask whether the parging is included in the scope and what thickness they will apply, ask how the cove at the footing is formed and what material is used, and ask whether the membrane is described in the written quote as dampproofing or waterproofing. Those are not interchangeable, and the quote should name which one is being installed.

Line the written quotes up and check that each one names the same wall faces and their lengths, states plainly whether the work is dampproofing or waterproofing, and says whether the drain tile is being replaced and where it will discharge.