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5/15/2009

Hamilton, ON - When you hire someone to repair or renovate your home, or build a new home for you, there is a wide range of provincial laws and regulations that can apply. Building codes and various other local requirements are enforced by the particular city or region in which you reside whether it is Hamilton, Halton, Niagara or the Brantford region. As the property owner, it is important for you to know that these laws and regulations are being observed. In many cases you, not the person or company you hire, will be held responsible if laws or regulations are broken.

Hiring a professional contractor and having a written contract are the most important steps in this process.

The specific laws and regulations that can apply to your project will vary depending on the type of work involved, who is doing it, and the business relationship you establish with the person or company you hire. Laws and regulations also vary between municipalities and the province of Ontario, so what applies in one area of the province may not apply in other areas.

Under Ontario law, homeowners who act as their own general contractor and hire others to do work on their homes may be considered constructors, and be responsible for meeting the requirements of the province's Occupational Health and Safety Act and regulations. This is why it is a good idea to involve your attorney to best protect you and your project.

It's easy to find someone to do that renovation work you want done around your house. Just call the number on one of those hand-drawn ads posted on utility poles in your neighbourhood. Or you could do some legwork and try to find a reputable contractor. You'll be happier with a job done well. Word of mouth is often the best way to find the right person for your job. If you know someone who's had work done in their home and they are pleased with the results, ask for a name and number. However, it is imperative to check with the Better Business Bureau first to insure that the company you are about to use has an acceptable rating within the marketplace. Get two or three quotes for the work you want done. The quotes should be written and spell out exactly the work you want done and how long it should take. The lowest quote may not necessarily be the best. If the bid is much lower than others, find out why. It may be because of corner cutting. Trust your instincts. If the red flags start to wave so much in front of your face, ask the contractor to leave your home. Do not let a contractor pressure you into making a quick decision to either hire him or her or pressure you to hand over money. Commit only when you are ready.

Any good contractor will gladly supply you with a list of references — and pictures showing examples of work that they have done. That list should include up-to-date contact information including names, addresses, phone numbers, and details about the jobs done. Take that list and call several of the people on it. Did they start on time? Were they courteous? Were they clean? Did they charge you more money at the end of the job that you didn’t expect? These are some of the questions you may wish to ask during your reference calls. You may also wish to consider getting out and seeing the actual jobs the contractor did. It will help ease your mind.

Your contract should outline exactly what work will be done in the renovation. It should include all drawings that can be done in advance of the project. It should also include a timetable for the project, with start and end dates. A payment schedule is crucial and should be based not on time spent on the job but on measurable milestones (e.g., completion of plumbing work, completion of electrical, etc.). Beware of a contract that demands a down payment of more than 10 or 15 per cent. The contract should indicate whether the homeowner or the contractor will be responsible for securing all the necessary permits, licences, inspections and certificates for the work. There should also be a clause stating that work will conform to the requirements of all applicable codes, such as building, safety and fire codes. The contract should spell out your right to hold back a certain percentage of the total cost of the renovation in case a subcontractor places a lien on your home because the contractor has not paid them.

It should also be stated in the contract that you will not pay any costs above the quote unless agreed to in writing. The contract should be easy-to-read. Typed out is best. There should be no fine print. You are taking a big risk if you are tempted to save some money by forgoing the formal contract and paying cash. Good luck getting satisfaction if something goes wrong after the work is complete. As well, you may be responsible if there is an accident during the construction.

As per Ontario law, you have up to 10 days to change your mind after you sign a contract. This is called the “cooling off period” to ensure that you are not pressured to sign the contract. It gives s you the necessary time to be sure that you have thought the contract and job out thoroughly.

Generally, a building permit is required for renovations that involve changes to the structure or systems of your home -- but the regulations will vary from municipality to municipality. Any time you add new lights that require new wiring, new switches or receptacles, you will need a permit. If your renovation requires electrical work, make sure your contractor has a proper permit and has a licensed electrician do the work.

It is your right to ask to see the plumber's or electrician’s valid licence. It is the homeowner's responsibility to obtain all proper permits for the work occurring on your premises — but the contractor can do it for you, if that's part of your contract. An inspector will check any work that is done after a permit has been issued.

If a contractor says to you, you don’t need a permit, phone the BBB or the government. If you go ahead with work on your home that requires a building permit without securing one, your municipality can issue a stop work order, which will remain in effect until you obtain the proper permits. Any contractor who comes onto your property should have a valid renovator's licence. It is your right to ask to see it. If the contractor is reluctant to show it to you, the Better Business Bureau advises that you should be reluctant to hire him or her. Requirements for renovators' licences vary from municipality to municipality. Check with the governments of your municipality for the rules in your city before hiring a contractor. Other trades people who work on your property should also have the proper certifications. If a person claims to be a licensed electrician, they should be more than happy to provide you with proof.

As a responsible homeowner, your house is adequately insured. But your coverage probably does not extend to your home as a construction site. Let’s say a fire happens, you want to make sure you are insured, because your insurance as a homeowner may not cover it. Your contractor should have workers compensation and third-party liability insurance for all the people on the job and damage they may cause ($2 million is standard). Check with the Better Business Bureau for what is standard South Central Ontario. Don’t just take the contractor’s word — ask to see a certificate of insurance coverage. Check to make sure it’s current. Don’t accept or assume any liability for the contractor or trades people. If a contractor doesn't have valid insurance, they can obtain temporary insurance to cover the work on your property. Beware of contractors who threaten not to work on your property if you demand to see evidence of insurance. It's also a good idea to inform your home insurance company that you are having renovations done to your home to make sure you are protected.

Also remember to check a company’s reliability report with the BBB prior to signing any contract. Visit our website at bbb.org.

About The Better Business Bureau
The Better Business Bureau of South Central Ontario established in June of 1938, is a not-for-profit, public service organization and part of an international organization with 130 local Bureaus across Canada and the United States. The BBB organization at large was founded in 1912 well over 97 years ago. For nearly 71 years, the BBB of South Central Ontario has championed trust and ethical business practices in the Hamilton, Halton, Niagara and Brantford regions through rigorous evaluation of businesses against objective standards, unbiased reliability reports, impartial dispute resolution services and educational programs for businesses and consumers alike. The Better Business Bureau is unique because of its position of neutrality and its outstanding history of service. Visit the Better Business Bureau at www.bbb.org.

Media Contact Information:
Davidé Ward-Mathis III
President and CEO
BETTER BUSINESS BUREAU
South Central Ontario
100 James Street South
Hamilton, Ontario L8P 2Z2
1 800 862 0825 Telephone
1 800 819 0104 Facsimile