There is the possibility of one or more trade strikes occurring this spring which may affect new home construction. The following provides information for new home buyers and also for builders regarding the potential impact on home delivery and warranty repairs.
Information for New Home Buyers
New home buyers in Ontario may be affected by these strikes in two ways. First, strikes may cause unavoidable delays in the construction and then delivery date of your home. Secondly, if you have already taken possession of your new home, strikes may affect the timing of the builder's ability to have trades complete warranty repairs.
An unavoidable delay is an extraordinary circumstance which could cause delay in construction or repairs through no fault of the builder because of specified events, such as a strike, fire, explosion, act of God, civil insurrection, act of war or terrorism, or pandemic. If such a delay occurs, the builder is permitted to extend all Critical Dates in the Addendum to the purchase agreement without paying delayed closing/occupancy compensation.
In the case of a strike, the builder must inform the purchaser at the outset of the delay associated with the strike. Once the strike has ended and the builder has had an opportunity to determine how long it will take to resume regular operations (this is known as the ‘remobilization period’), they must once again provide written notice to the purchaser.
New home buyers who have already taken possession of their homes may experience delays in warranty-related repairs due to a strike. Builder repair periods may be impacted for Initial, Year-End, Second-Year, and Major Structural Defect claims. This includes the initial builder period which begins once a claim is made, up to and including the post-conciliation repair period for items assessed as warranted at a conciliation. Extensions to builder repair periods will be granted by Tarion on a case-by-case basis, where Tarion determines that an extension is justified based on the strikes impacting individual projects.
For more detailed information on strike-related delays, click here Information Sheet for Homeowners/ Condominium Corporations
If you are a new homeowner who is affected by these strikes, you should be contacted by your builder. If you have questions on the strikes, you can also contact Tarion at 1-877-982-7466 or email customerservice@tarion.com for more information.
Information for Builders
If strikes occur, there may be an impact on your closing/occupancy dates or your warranty obligations to your customers that are set out in Registrar Bulletin 1 and Registrar Bulletin 2
If you believe that this will impact your project(s), we encourage you to download these resources:
Information Sheet for New Home Builders – Possible Effects of Strikes on New Home Construction
Q&A for Builders – Strikes, Unavoidable Delay & Critical Dates
Strike Worksheets
For inquiries on strike-related delays for freehold and condo units, please contact:
Trudy Napoleone
Manager, Warranty Services
Phone: (416)229-3844, ext. 3202
Email: trudy.napoleone@tarion.com
For inquiries on strike-related delays for common elements, please contact:
Kim Patterson
Manager, Warranty Services, CE
Phone: (416)229-3844, ext. 3183
Email: kim.patterson@tarion.com