COVID-19 Pandemic Response: Information For Builders

In line with the province’s steps to cautiously and gradually ease public health measures, effective 12:01am on January 31, 2022, builder repair periods will resume.

With repair periods resuming, we understand that some builders may continue to have difficulty completing repairs due to issues related to COVID-19, such as material and trade shortages. For more information on the materials shortages, refer to this advisory. If builders require additional time to complete work, they may enter into a repair agreement with the homeowner to further extend the builder repair timelines, and submit the signed agreement to Tarion.  If they cannot reach an agreement with a homeowner, they can make a request under the extraordinary circumstances provisions of Registrar Bulletins 01 and 02.  To make a request for an extension, builders can email covidextension@tarion.com.

Please note that Tarion moved the chargeability assessment back to the time of conciliation effective November 29, 2021 and added a new temporary COVID-19 exception to chargeability to address issues with supply chains, material shortages and trades as a result of the COVID-19 pandemic. The temporary exception to chargeability applies to conciliations conducted by Tarion on or after November 29, 2021.  Please refer to the COVID-19 Temporary Supplement to Registrar Bulletin 04 (Effective Nov. 29, 2021) for more information.

If builders have any questions about their specific circumstance, they should contact Tarion’s customer service team at 1-877-982-7466 or email covid19@tarion.com.

When builder repair periods resume on January 31, if a homeowner is not comfortable granting access to their home because of health and safety concerns, Tarion encourages them to enter into a written agreement with their builder to identify how and when the repairs can be completed, including extending the timelines for the builder to conduct repairs.  If such an agreement is reached, Tarion should be advised. If a homeowner and builder cannot agree to a reasonable extension, they can contact Tarion at covid19@tarion.com for assistance.

Builders are advised to continue to follow the emergency processes outlined in Registrar Bulletin 01 (formerly Builder Bulletin 42) and Registrar Bulletin 02 (formerly Builder Bulletin 49). If homeowners or builders have any questions about their specific circumstance, they should contact Tarion’s customer service team at 1-877-982-7466 or email covid19@tarion.com.

With the resumption of builder repair periods, if builders wish to proceed with repairs, but are having difficulty completing repairs due to issues related to COVID-19, including homeowners who are not comfortable allowing outside workers in, homeowners who are not abiding by health and safety measures, or trades/employees who have safety concerns about entering a home, builders should negotiate a repair agreement with the homeowner. 

If builders want to proceed with repairs and are unable to come to a written agreement with a homeowner, then they can contact Tarion and request an extension under the extraordinary circumstances provisions of Registrar Bulletins 01 and 02 . The request should be submitted to covidextension@tarion.com at least 10 days before the expiry of the applicable repair period. The following information should be provided with the request for extension:

• The enrolment number(s) for the home(s) affected;
• The warranty form(s) affected;
• A complete explanation of the builder’s circumstances (i.e. why additional time is required to complete the repairs);
• The length of additional time being requested.

Tarion will review the information provided and will contact the builder if additional information is required. Tarion will then confirm whether additional time will be granted and, if so, the length of the additional time. For more information on the process for requesting extensions, refer to our Guidance on Repairs during COVID19 advisory.

Tarion is conducting scheduled conciliations and claim inspections in person but will conduct them virtually upon request. 

Prior to a conciliation or inspection, a builder will receive a list of the items that will be included as part of the conciliation/inspection and confirmation from the Warranty Services Representative on how the inspection will proceed (i.e. virtually, in-person or a combination).  The builder will be asked to participate in the virtual inspection. The homeowner and builder will be contacted separately by a Tarion representative prior to the inspection to discuss the items that will be reviewed during the inspection.

A Conciliation Assessment Report will be issued to both the homeowner and the builder after the inspection, outlining the warranty assessment for the items that were viewed during the inspection. The assessment will indicate whether the item was viewed virtually or in-person.  The builder will then have the post-conciliation repair period (30 days) to address any warranted items. Please note that Tarion moved the chargeability assessment back to the time of conciliation effective November 29, 2021 and added a new temporary COVID-19 exception to chargeability to address issues with supply chains, material shortages and trades as a result of the COVID-19 pandemic. The change in chargeability assessment timing took effect on November 29, 2021. This new temporary exception to chargeability applies to conciliations conducted by Tarion on or after November 29, 2021.  Please refer to the COVID-19 Temporary Supplement to Registrar Bulletin 04 (Effective Nov. 29, 2021) for more information.

The determinations for each stage of the process for extending Critical Dates due to Unavoidable Delay must be done on a case-by-case basis by the vendor. Please see the Q&A on COVID-19: Unavoidable Delay & Critical Dates.

The timing of remobilization and the Second Notice for Unavoidable Delays should not be governed by whether the ‘outbreak” itself continues or whether the Government of Ontario’s emergency declaration and stay-at-home order is still in place. The COVID-19 outbreak is an Unavoidable Delay event and it is the impacts of the outbreak on the delivery of the home (including the remobilization period) which determine when the Second Notice should be sent. For example, if the vendor has made the assessment of the impacts and believes the impediments to closing are removed, it is permissible to send out the Second Notice.

Do not send out the Second Notice until you are ready. You must take this exercise seriously and act prudently but reasonably in assessing the extra time needed. 

In a circumstance where a Second Notice has already been sent, but there are new and unanticipated impacts from the pandemic or a subsequent surge or wave of the pandemic, then it may be possible for vendors to re-engage the Unavoidable Delay provisions of the Addendum so long as the vendor meets certain requirements. For a discussion of this question and likely requirements please refer to this Q&A on Unavoidable Delays and Critical Dates.

If the Vendor is not able to provide the detailed information regarding the impacts , or cannot satisfy the possible requirements, then Tarion is likely to consider any purported subsequent First Notice as invalid and delay compensation may be a consequence. 

In all circumstances, vendors should properly monitor the length of the impacts of the outbreak, take the time to figure out the anticipated additional delay (Remobilization Period) and then send the Second Notice once you have a reasonable level of comfort that the extra time you have added on to the construction schedule will be sufficient. Re-engaging the unavoidable delay process more than once for a single home may be difficult and you should consult a lawyer. 

For further information on the COVID-19 outbreak and unavoidable delays, please see the Q&A on COVID-19: Unavoidable Delay & Critical Dates.

Given the state of emergency, we do not consider it absolutely necessary that the PDI occur prior to a closing in the presence of both the builder and the homeowner.

However, it is Tarion's position that:

• in-person PDIs can happen if participants adhere to provincial health and safety and physical distancing guidelines,
• both parties agree to the conditions under which the PDI would be carried out,
• if one or both parties do not consent to an in-person PDI, we recommend that builders and homeowners each conduct their own separate reviews of the home.

In order to assist homeowners and builders who wish to conduct an in-person PDI, Tarion has put together guidelines available here. Please note that this guidance provides basic information only and is not intended to take the place of public health advice, nor does it constitute legal advice. We recommend that builders and homeowners consult with their legal advisors for any questions regarding risk or liability, and that they monitor current health advice issued by the province.

In the event that one or both parties do not consent to an in-person PDI, we recommend that builders and homeowners each conduct their own separate reviews of the home. Builders should complete their own review of the home or unit prior to possession or occupancy, and document the condition of the home. The homeowner should conduct their own “delivery” inspection as soon as reasonably possible after taking possession. The homeowner should document as best they can (including photos and/or video) any missing/incomplete items or damages which they discover and believe were caused prior to when they took possession. 

The records of the homeowner and builder can serve as evidence of the state of the home close to occupancy and may be helpful in the event a dispute arises later as to whether an item of damage was caused by the homeowner or builder.

The PDI form is not a Tarion claim form, so if an item is not noted on the PDI form this does not necessarily impact its warranty coverage. If a homeowner notes an item on their 30-day form which is not on the PDI, the item noted will still form part of their warranty claim. The fact that it was not listed on the PDI will be relevant if is an item of damage such as a chip in a countertop that may have occurred after possession. In this case, it will be helpful for the homeowner to show that they noted the damage as close to taking possession or occupancy of the home as possible as noted above, in the event that the claim is not remedied by the builder and the matter comes to Tarion for resolution.

We urge all parties to approach the occupancy of the home and handling of the PDI in a reasonable way in light of the current health situation in the province.