Are construction worker strikes impacting the timeliness of the fabrication and delivery date of your home? Have those strikes caused the inability to receive warranty repair services? If so, this article may be for you!
On May 1, 2022, over 15,000 construction workers in Ontario walked off the job, causing many delays in residential building projects in the Greater Toronto Area. Those on strike included high-rise forming workers, self-level flooring workers, house framers and tile, railing, carpet, and hardwood installers. On June 15, under the Ontario Labour Relations Act, strikes were required to suffice, therefore resuming work for these employees.
When a strike occurs, builders are permitted to extend all Critical Dates in the Addendum to the purchase agreement without paying delayed closing compensations. However, builders must inform the purchaser at the start of the delay associated with the strike. Once that strike has ended and the builder is able to determine the length of the remobilization period (time to resume operations), they must provide a written notice to the purchaser.
While new home buyers who have already taken possession of their homes have a warranty agreement for repairs, they might experience delays during a strike. That warranty agreement is protected by an organization called Tarion, a consumer protection organization founded by the government to administer the new home warranty program. Builder repair periods in these matters may be extended by Tarion on a case-by-case basis, who determines the justification for the extension based on the impact of the strike on individual projects.
However, under the Ontario New Home Warranties Plan, a homeowner may be eligible to claim compensation once the builder extensions have concluded, depending on if all requirements are met. This compensation can amount up to $150 a day for living expenses, plus eligibility for compensation for other legitimate expenses, such as moving costs or storage expenses. The maximum amount that can be recovered is $7,500, plus taxes based on the length of the delay and any provable expenses. To make this claim, the homeowner must submit a Delayed Closing Form to Tarion and the builder. To determine if you are eligible for a claim, you may visit the Tarion website at Tarion.com.
If the construction of the home is not finished by a year after the extensions, the homeowners have a 30-day period to cancel the agreement.
We can guide you through the complex legal processes associated with seeking claims for construction delays on your new home. This material is for informational purposes only and should not be relied upon as legal advice.
To book a consultation with Buzaker Law Firm regarding construction delays to your home in Ontario, contact us at: firstname.lastname@example.org or (905) 370 – 0484