Risky Renovations

Corrine Levesque

Image source: Flickr, Juice, 2006.

The world of residential construction in Quebec is in a downward spiral. Clients, workers and contractors seem to be spending more time and effort butting heads with each other than on head nails. Consequently, flaws within the sector of residential construction in the Province of Quebec create an "underground industry" which gives rise to illegal activities, dangerously completed and, thus, uninsurable work, as well as under-pricing and billions in financial losses for the government. Long-overdue government legislation is finally getting the attention it deserves and significant changes seem to be on the rise in the aim to protect all parties involved and eliminate the possibility of getting hurt, cheated, or better yet, ending a project with feelings of disappointment.

 

 

THE ROLE OF THE PROVINCIAL GOVERNMENT

 

An attempt to build a solid foundation within the construction industry in Quebec is not a new concept. In fact, 1968 marks the year of many laws and regulations that are still active today. Signs of a growing underground economy were alarming and forced the government to create a union for all worker and contractors. The concept of a union is that all workers, contractors and project permits are regulated within the same association which in turn helps isolate the criminals from the "good guys".

 

By the 1990ʼs the structure of the industry had collapsed. It was now considered a problematic sector with a calculated fiscal loss of 1.9 Billion for the Province. The government grew concerned and began looking for strategies to turn this around. A Risky Reno's grant totaling 90 Million Dollars was given to target all sectors for Quebec construction including residential renovations. The grant proved to be wise investment since by 2008, it was completely paid off and recovered a total of 1.9 Billion. (http://www.ccq.org/B_IndustrieConstruction/B01)

 

In 1995, residential construction hit a boom. The combination of low interest rates, strong job creation and lowered taxes created a new demand for housing. In addition to this came the increase in immigration and a younger Canadian population entering the market. With such great demands come great need and the construction industry almost quadrupled at 270 % by 2004. (http://www.ccq.org/B_IndustrieConstruction/B01)

 

In recent times, the Quebec government introduced various programs in its attempt to better the system. Renovation Quebec has made online pamphlets for the "framework program" which reaches out to low-income and rundown areas. Homeowners who wish to participate must apply directly to their municipality to find out if they are eligible. The municipality is then managed by the Societe dʼhabitation du Quebec under signed agreement.

 

Once a project is approved it is subject to various subsidies by both the Quebec government and the municipality. Home owners participating in this program are only required to pay for one third of the total costs. In the case of non-profit housing organization it is one-quarter of the cost. Such programs are expected to stimulate the economy at an estimated rate of one dollar spent for seven dollars invested back into the community, thus creating work and increasing government fiscal gain.

 

A second attempt to gain control over the underground industry is to force every worker and contractor to hand in a record of worked hours per job site.

 

 

THE STRUCTURE OF THE INDUSTRY

 

The construction industry, like many large government operation, holds multiple departments which are expected to fulfil specific tasks contributing the web of branches that eventually tie together to cover the global needs of the industry. These associations hold a conference every five years where laws and regulations are revised. Together they create the basic structure for the industryʼs biggest divisions namely the "commercial and institutional, residential, industrial and commercial, civil engineering and road works" (R. v. Advance Cutting & Coring Ltd. [2001] 3 S.C.R. 209).

 

The major associations working within residential renovations are RBQ-Régis du bâtiment du Québec, CCQ-Commission de la Construction du Québec and MRQMinistère du Revenu du Québec all of which are necessary to assist the thousands of small companies that deliver the largest number of contracts. In 2006 an estimated 85% of companies hired an average of only five employees because "most clients can only afford to re-build their homes one section at a time and this can easily be done with Risky Reno's an average of one to four different workers. It is mainly the construction of new homes that requires a large number of employees" (Interview, JP-Belisle).

 

The associations mentioned above are working together to eliminate all illegal activities by enforcing Quebec construction rules and regulation such as the Civil Code of Quebec-1866, which includes the Building Act. Throughout the year, a contractor may face a surprise visit by the CCQ-Commission de la Construction du Quebec and\or the CSST-Commission de la sante et securite du travail who will verify the site for any infractions relating to building and safety code violations, building permits as well as the workers credentials and contractors licenses. (David H. Kauffman: dkauffman@dgclex.com)

 

The underground industry is formulated by all workers that have not passed the required tests to attain a certification. Obtaining certification can be done by "passing a course or by learning in the field with another certified trade worker and accumulating the required amount of hours to be approved by the board" (Interview, JP Belisle). Certification must be renewed every year by presenting a financial statement of capital requirements. This card provides workers with a union, salary standard and insurance. "The need for insurance varies thanks to a standard no-fault provincial coverage" (interview, JP Belisle)

 

It is important to note that non-certified workers are not automatically unqualified; it is simply an indication that they have either, chosen not to, or never needed to acquire their cards in order to find work. Remaining in the underground business is advantageous for many workers even though they loose the support and protection of the Union should they face difficult times or suffer an injury, in which case they will not be covered by workers compensation and will not receive insurance through the CSST.

 

The same choices can be made by a home owner who decides to hire "underground" workers instead of the unionized. This type of process brings great financial benefit but also raises the risk of doing business with ill-intentioned workers. Such experiences are the source of many ongoing problems within the industry and have brought much shame and stress to those who mean well. The concept of hiring by referral has become the most reliable form of advertisement to counteract the effect of frauds. In fact, some of the most successful trade workers and contractors have no use for publicity.

 

The choice to complete a contract through "cash" payments can be beneficial to the home owners, contractors and trade workers because it may lower their tax margins. This is only possible if   agrees, otherwise, those who failed to claim the work in their tax records may face a conviction should the government make the connection with another party who did claim that work.

 

Another challenge that residential workers are faced with is the subject of flawed work by a previous workers who have failed to conform to construction codes which can lead to major problems in the future.

 

Work that is flawed will not be covered by insurance if it is found to be the leading cause of damage in the home. In the majority of cases, the home owner is not aware of this and does not have records of dates, company names, receipts, or even a name that could help track down those responsible. Consequently, the risk is in the hands of the present workers and the bill in those of the owners.

 

 

CLIENTS SUFFER

 

Clients are faced with a different kind of challenge when making the choice to do renovations. For most people, the house is a home and a very private place that is not to be disturbed, especially, by strangers who will ring the door bell well before you have had a chance to finish your coffee or even brush your teeth and who will take up what feels like a tone of space. Later, they will need to move your furniture around to the point where you cannot find anything anymore and will top it off by requiring to be paid by non other than yourself. Although clients are perfectly aware of the challenges that arise before starting up a project, the experience of it is always more intense than

anticipated.

Image source: "Recent Project", 2011

 

It is also rare that a client has sufficient experience or knowledge of the industry to fully grasp the situation. The recent explosion of advertising and recent fads on "do it yourself" reality shows may shed some light about the complexity of the work, but generally, they tend to make matters worst. They give a false idea of how much the materials and labour will cost and on how quickly the job can get done. All this is because they ignore one main very essential detail, which is that every home holds unique properties and therefore requires different preparations. From a worker-client

perspective this is where trust comes into the equation.

 

Overall, only a professional has the experience to determine the most suitable way to get the job done and it is up to the client to give the worker space, credit and trust their knowledge. In this operation, there are no charts to rely on when trying to determine the exact costs and time frames required for work completion. This also applies to payment methods which create a loop hole between the contractor and client. It is absolutely imperative that such details be discussed before starting a project.

Clients who are inexperienced can seek advice on insurance web sites such as CAA-Quebec who clearly explain the steps to getting started on the right track "after meeting with at least three contractors" then consider that "he was recommended as being very qualified, and you found his estimate suitable" (CAA-Québec, 2010- By Suzanne Décarie). National contract formulas are drafted in French and in English by the CCDC - Canadian Construction Documents Committee and the CCA - Canadian Construction Association for both the public and private domains but these fail to include one very important document regarding the province of Quebec, one that specifies how to operate final payments under the statement of the "substantial performance of the work" (David H. Kauffman dkauffman@dgclex.com). In other words, neither the client nor worker has a conformed government standard to rely on while conducting business. Without a road map, it is difficult to stay on track and conform to a good client-worker relationship.

 

 

Recent news revealed that Quebec Mafia members influence the industry and "bids on recent construction contracts have been 25%-30% lower than they projected" along with affiliations to the Quebec government, explains Khadir, is that-"people in Quebec are infuriated by what they hear everyday and they judge the government every day" (Quebec Solidaire MNA Amir Khadir).

 

 

WORKERS SUFFER

 

In the midst of all this action lies the key ingredient, the workers. The main objective here resembles that of most people: do your best, donʼt mess up and try to enjoy it as much as you can. It may seem like a simple thing but workers are often trying to please more than just their boss. Trade workers in residential renovations communicate with and work for a client, a contractor and at times will be lead by a fellow trade worker. Each party involved holds a set of priorities that must be met according to their expectations. This requires a great deal of resilience, patience, maturity, understanding and most of all, time.

 

Image source: "Co-Workers", 2010.

The relationship between a contractor and a worker is usually well established and is less likely to contribute to the tension in one home. Planning is everything in working successfully side by side with other trade workers whose needs must be combined with your own on a daily basis. Trade priorities are often determined by who needs to finish their part before the other may begin.

 

Unfortunately, this concept is difficult for most clients to grasp. Such clients will make the mistake of hiring separate service providers and book everyone on the same day. This kink leads to major inconveniences that can slow the project down, especially, when certain workers are forced to head home and reschedule for the week end.

 

When it is time to communicate with a client the most important approach is to keep things simple. Personality has everything to do with the success of this relationship because this is where the most important factor comes in, trust. Once the trust is put to the test, all other matters will come second. Although this is in no way related to the specialization of a trade it is a crucial detail to understand because it is, after all, the client who will or will not refer you to their friends and family in the future and it is up to them to decide if they are satisfied with your work.

 

Once all of these matters are dealt with the trade work can finally begin. Most tasks are equally demanding physically and mentally. It takes a specific type of person to be able to endure the state of a work site. Often there are no wall power installations, no running water, no kitchen, no heat and sometimes the stairs have been removed making it that much harder to get around with tools. Every corner space is filled with all kinds of equipments that make all kinds of noise. Hence, it is a bizarre place to be.

 

 

The time spent on one project varies and often your work is divided between many homes. This forces workers to constantly reorganize and readjust to a new site that is filled with new rules and expectations. Experience is the life saver in this industry because every home offers a different scenario and it is up to the worker to solve the problems related to it. Unfortunately, the solution is not always obvious leaving the possibility of making the wrong choice. Something that can quickly back fire.

 

Wither a worker does not care about the quality of their product, or simply made a false judgment, is difficult to determine once the job is complete. A workerʼs reputation will be largely affected should this become a recurring theme in their career. Anyone who is linked to faulty work is at risk of loosing approval from clients, contractors and fellow team mates. Nevertheless, there are numerous ill-intentioned people involved in this industry and it is up to each person to keep them at a distance. Since the 1970ʼs, it has been an ongoing battle for trade workers to prosper above and beyond the tarnished reputation that has caused, to no fault of their own, much unnecessary debate between clients and workers.

 

 

Image source: Flickr, Confused Abode, 2007.

CONCLUSION

 

The question remains about who we are to blame for decades of confusion within

one of the largest and most precious industries of our time. It has become obvious over

time that the extent of control that small companies hold is not substantial enough to

produce real change. Clients continue to feel threatened and victimized while workers

continue to try to convince the world that they are worthy of their word, and their work.

 

To date, enough emphasis has been placed on the industry of residential renovations. It is now time to conclude negotiation and make significant adjustments in order to raise Quebec to the same level as all other Canadian provinces. The bottomline is that without change the cycle shall continue. While it is easy to place a band aid on the many small conflicts that progress everyday, one fact remains, the government holds the key and should be held accountable for its negligence in building a solid, functional and reliable foundation for the citizens of Quebec.