The Open Door Blog
Whether you own a new home or condo, are considering buying one, or just love to dream about it, the Open Door blog is here to share stories that can help you protect what is likely the biggest investment of your life.
The Open Door blog is published by Tarion, a non-profit corporation that administers Ontario’s New Home Warranty Plan and registers all new home builders in Ontario. Click here to learn more about us.
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- June 3, 2019
Trade strike delays and what it could mean for your new home
Skilled tradespeople are essential in new home construction. For example, they install the tiling on the floor, the framing that makes up the skeleton of your home and the electricity running throughout your home.
Recently, a number of the trade unions in the new home building industry have been negotiating new contracts. While the majority of the unions now have deals in place, there are a couple that voted to strike.
So, what can strikes or potential strikes mean for you and your new home? Well, it can lead to a home not being finished on time or outstanding warranty claims taking longer to get resolved.
A labour strike can disrupt the services provided by the tradespeople your builder is relying on to build your home. This can cause an unavoidable delay, which is an extraordinary circumstance where a closing or occupancy date is delayed through no fault of the builder.
A labour strike can disrupt the services provided by the tradespeople your builder is relying on to build your home. This can cause an unavoidable delay, which is an extraordinary circumstance where a closing or occupancy date is delayed through no fault of the builder. In addition to strikes, unavoidable delays can be caused by fires, explosions, acts of God, civil insurrections, acts of war or terrorism, or pandemics.
If an unavoidable delay occurs, your builder is permitted to extend the critical dates in the Addendum to the purchase agreement without paying you delayed closing/occupancy compensation.
To do so, your builder must provide you with two written notices. The first one must inform you that there is a strike that may cause a delay and provide an estimate of how long the delay will last. Once the strike is over, your builder must send a second notice advising when the strike ended and setting new critical dates. The new critical dates are calculated by adding to the then next critical date the length of the strike plus the time it will take to get construction of your home up and running again.
How a strike can affect your warranty claims
But what happens if you’ve already taken possession of your new home? A labour strike may hamper your builder’s ability to repair items covered by the warranty. The builder repair period may, therefore, needs to be extended to account for delays caused by strikes. Extensions are granted on a case-by-case basis as determined by Tarion.
- Unavoidable delays caused by strikes can impact the construction or repair periods of your new home
- Your builder is obligated to provide you with written notices of the impact a strike can have on the completion of your new home
As always, please contact us if you have a question about your warranty or if you have received notification about a strike delay and need more clarification.