Good Renovation Advice Available to Both Owner and Contractor
The drama began late last year when Anita Dovey hired builder Nigel Gray to add a porch and a conservatory to her council house. (In the U.K., a council house is a form of public or social housing built and operated by municipal councils. Eligible tenants obtain secure leases at below market rents.)
Gray quoted Dovey £15,000 (about $30,500) for the job, but when it was completed he had difficulty obtaining payment.
After receiving a couple of NSF cheques, Gray gave up trying to get paid for the job and obtained permission from the local district council to knock down the porch and repossess the conservatory.
In April, in the presence of a crowd of photographers, Gray and his crew used sledgehammers to demolish the brick porch and its red-tiled roof, and remove the conservatory from the house.
Gray said, "The only reason I am smashing it down is because there is no way I am going to be mugged off." (Urbandictionary.com defines "mugged off" as the way someone reacts after being offended, insulted or disrespected.)
A spokesperson for the local council said that Dovey would be billed for the cost of restoring the property back to its pre-renovation state.
Following considerable media attention, Gray donated what is now Britain's most famous conservatory to the Argus Appeal, a local charity, where it will be auctioned off to the highest bidder.
Harvey Kirsh is a senior partner at Osler Hoskin & Harcourt in Toronto, and a recognized specialist in construction law. Last week I asked him whether a similar outcome could occur on this side of the ocean.
"The simple answer," he said, "is no, not in Canada."
Kirsh explained that an unpaid contractor has a choice of remedies in Canada, including court action for collecting unpaid funds or registering a construction lien. A self-help remedy such as demolition or removal of the improvement exposes the contractor to criminal charges and a claim for damages caused by the removal.
In England, Kirsh said, there is no construction lien legislation which would entitle a contractor to take legal action against the lease of a tenant in a council house.
Fortunately, there is no shortage of good advice available for both contractors and owners or tenants contemplating a renovation in Ontario.
One of the best sources of information I've found is the website of Canada Mortgage and Housing Corporation (CMHC) at cmhc-schl.gc.ca.
Click on consumer and choose renovation as a topic. CMHC offers renovation guides, videos, energy-saving tips, fact sheets, inspection checklists, financing options, and details on getting refunds of part of the mortgage loan insurance premiums for energy-efficient renovations or home purchases.
Best of all is a sample renovation contract. CMHC says that a detailed written contract between the homeowner and the contractor is essential to any renovation or home repair project, no matter its size. Even the smallest job should be put in writing.
For a home renovation project, the CMHC contract template and the accompanying commentary are just as good as any of the expensive ones in my law library.
Topics covered include a description of the work, responsibility for obtaining permits, timing, terms and timing of payment, change orders, washroom facilities for the workers, standards of work, warranties, workers' compensation compliance, insurance, default, and – most important – dispute resolution.
There is no section in the sample contract about demolition of the work in the event of nonpayment.
Bob Aaron is a sole practitioner at the law firm of Aaron & Aaron in Toronto. Bob specializes in the areas of real estate, corporate and commercial law, estates and wills and landlord/tenant law. His Title Page column appears Saturdays in The Toronto Star and weekly on Move Smartly. E-mail bob@aaron.ca
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Great Britain has reputedly the fairest system of justice in the world, and yet, for the small works builder at least, Canada appears to have a vastly superior system of justice.
From personal experience I know that the rogue customer type, as experienced by Nigel Gray, is very prevelant over here and the hardest part of a small builders work can quite often be simply just getting paid.
To many unscrupulous members of the public the small works builder is viewed as an easy target, who can be abused and fleeced with very little, if any, protection from the legal system.
That's how it is over here in England, and in proof of my claim I ask that any interested party in Canada visit my website, - peruse the documented injustice that I have endured,- and then get back to me and tell me: What has happened to me here in England, - Is there any possibility that it could have happened to you in Canada?
Sincerely,
Colin Peters
Posted by: Colin Peters | June 17, 2008 at 07:58 PM
I took your advice. Thanks very much.
Posted by: Latin american property | June 18, 2008 at 05:58 AM
Interesting and partly shocking story because as the previous comment said the system of justice in the UK is the fairest in the world. I`m working for a Toronto real estate company and I`ve heard about different cases with similar difficulties so I would say that it could happen to you in Canada as well. One should plan everything before the renovation process but no one guarantees you can`t get in trouble.
Posted by: Toronto real estate agent | June 23, 2008 at 07:05 AM
very newsworthy...issues like those are really interesting to read!
Posted by: home renovation calgary | September 17, 2008 at 01:01 PM
advices such as these are really much of help..
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Visit AllEasyList.com - obviously most easy way to find a plumber, electrician, carpenter, landscaper or anyone else you need for a service around your home.
Posted by: CAnteco | October 06, 2008 at 01:42 AM
better results are achieved when you and your contractor have a good working relationship together...
Posted by: home repair va | October 10, 2008 at 01:06 PM
this is very helpful post to both contractor and homeowner...to be able to get things done perfectly coordination is truly needed...
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