In the absence of a written agreement, the presence of grief is much more likely
By Peter Simpson, Special to the Sun
May 1, 2010
I am willing to bet that you, a family member, friend or neighbour has just completed, is undertaking, or is seriously considering some form of home-improvement project.
Although a new home is considered the ultimate “renovation,” many homeowners are opting to stay put and give their tired homes much needed makeovers. They value their familiar surroundings, area amenities, scenic vistas or proximity to family. Whatever the reason, they are not moving.
The residential renovation industry is one of the key foundation blocks of Metro Vancouver’s economy. Consider these impressive statistics for 2010, compiled by Will Dunning Economic Research for the Canadian Home Builders’ Association. The data was gleaned from Canada Mortgage and Housing Corp. and Statistics Canada.
There will be $3.5 billion in renovation spending, generating 31,000 jobs and $1.6 billion in wages. Further, $860 million in taxes will be collected by the provincial and federal governments.
And those are just the official numbers. Factor in the burgeoning underground cash economy — soon to be exacerbated by the HST — and those numbers, save the unremitted taxes, rise significantly.
We are all aware of the success of the home renovation tax credit (HRTC). Consumers were receptive to this action by the federal government to reduce the cost of home improvements. Heck, I saved receipts and qualified for a tax credit. Many of my friends and associates benefited, as well.
Canadians need a permanent home renovation tax rebate equal to 2.5 per cent of the total cost of a home renovation, regardless of the value of the renovation. This will restore fairness to how renovations are taxed by the feds, and it will help to weed out the underground cash-only operators in the renovation sector. I intend to write more on this thorny tax-rebate issue in a future column.
Meanwhile, here’s the thing about the HST. Sadly, despite growing public opposition, this tax will sink its teeth into us on July 1, as planned. The added burden on new homes aside, the HST will have a significant impact on home renovation, and I have a few words of advice for homeowners.
Resist the temptation to deal in the underground cash economy to avoid paying tax. Nothing good will come of it. Homeowners are placing themselves at great financial and emotional risk if they don’t have a written contract that clearly defines roles and responsibilities of the homeowner and renovation contractor, if there are no municipal permits and inspections, if the contractor does not follow WorkSafeBC regulations, if there is no liability insurance in place or if there is no warranty.
If the job is botched, homeowners will have difficulties seeking relief from the courts. The first thing the judge will want to review is the contract. No contract, case dismissed. Also, if someone is injured on the job, the authorities will go after the contractor. Guess who that is in the absence of a contract? Yep, you, the homeowner. Do you really want to deal with all this stress just to avoid paying tax?
You might want to check out www.gvhba.org to learn about the RenoMark program.
Member renovators must abide by a specific 10-condition code of conduct. They understand the value of customer service during the project and after completion. They provide warranties and have access to information on current trends, the latest building materials and techniques, and regulations.
That said, problems do crop up from time to time, even with the best of contractors. I find that open communication usually helps to resolve contentious issues. If a dispute does progress to the point where the client or contractor can’t agree, the options are arbitration or the courts. A written contract will certainly help in these cases. And, contrary to popular belief, the customer is not always right.
There are two must-attend events on the horizon this month and next for homeowners contemplating renovations, whether they are substantial makeovers or simple home-improvement projects.
On May 13, the Greater Vancouver Home Builders’ Association — in partnership with BC Hydro, Canada Mortgage and Housing Corp. and Terasen Gas — is presenting its popular spring home renovation seminar from 7 to 9 p.m. at the Croatian Cultural Centre in Vancouver.
Homeowners will be guided through the various stages of the renovation process, including design and planning, legal and contracts, selecting a renovator, municipal permits and inspections, and living through a renovation. Presenters include award-winning renovation contractors, a construction lawyer, senior municipal building official and interior designer. Mike Holmes would be proud.
Because the B.C. Home & Garden Show was cancelled this spring due to renovations at BC Place Stadium (ironic, huh?), the seminar display area — which will feature more than 50 RenoMark contractors and suppliers of building products and services — will open at 5 p.m. to give homeowners time to discuss renovation plans with the experts.
Admission to the seminar and exhibit area is free, but pre-registration is required. Register online at www.gvhba.org or call 778-565-4288. A food item for the Greater Vancouver Food Bank Society is requested.
On June 13, the 17th annual Parade of Renovated Homes will showcase a dozen or so professionally renovated homes. Details will be posted at www.gvhba.org. Last year there were 17 homes on the six-hour event, with renovation value ranging from $70,000 to $700,000 — offering an abundance of design and construction ideas.
Admission is by passport, available for only $10 per person. Children under 17 accompanied by parents are free. Passports can be purchased at any home then used for entry to the other homes on the tour. Part of proceeds will help fund the purchase of tools, building materials and safety gear for an innovative carpentry training program offered at two Surrey high schools.
Peter Simpson is CEO of Greater Vancouver Home Builders’ Association.
E-mail: peter@gvhba.org.
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