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Sask. construction industry loses 14,000 jobs over 3 years, association says

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Trevor Stein’s company spent nearly a year wiring new apartment complexes in Saskatoon’s Stonebridge neighbourhood.

After Stein invoiced the owner, Block 1, for more than a million dollars for wages and materials, he learned the British Columbia real estate company was seeking creditor protection.

The company never did pay him or a number of other local contractors for the work they completed, he says.

“Not one penny,” Stein said, after the courts finished sorting out Block 1’s misadventures this summer. “All our liens got ripped out and tossed out.”

in 2016, a British Columbia court issued a creditor protection order to the owners of The Cielo apartments in Saskatoon’s Stonebridge neighbourhood. The buildings have since been sold to new owners. (CBC)

‘There’s just less work’

With 60 employees depending on him, Stein said he had no choice but to chase more work to cover expenses. 

Finding that work is now more difficult.

For construction companies in Saskatchewan, 2015 was a record year, according to the Saskatchewan Construction Association, as crews built Regina’s new football stadium and the Children’s Hospital in Saskatoon, along with new hospitals in Moose Jaw and North Battleford.

The province has since tightened its belt.

‘It’s now an average of 70 to 90 days for a contractor to be paid for work that’s already been completed,’ said Mark Cooper, the president and CEO of the Saskatchewan Construction Association. (CBCKirk Fraser)

“Where you used to have three or four companies that used to compete for a job, now there are 20,” said Mark Cooper, president of the Saskatchewan Construction Association. “There’s just less work.”

Cooper said since 2015, 14,000 jobs have disappeared from Saskatchewan’s construction industry.

“What we do need is a return of confidence to the economy at both the consumer level and the investor level,” Cooper said.

“People are holding onto their money.”

Building costs rise, mortgage rules get stricter

It seems fewer people can afford to build new houses in Saskatchewan, which saw a 32 per cent drop in urban housing starts this summer compared to last, the province’s construction association says, earning it a last-place ranking among the provinces for growth.

Per square foot, Saskatoon has also become the most expensive city to build in Canada, with Regina in second place, according to the Saskatoon and Regina builders associations.

One home builder working in both Regina and Saskatoon has now laid off 50 employees.

Saskatchewan has weathered downturns before, said Stu Niebergall, president of the Regina and Region Home Builders’ Association. 

Stu Niebergall is the president of the Regina and Region Home Builders’ Association. (Radio-Canada)

“What’s different this time is that governments have chosen to increase regulations, increase fees and at the federal level, make it more difficult to buy a home,” Niebergall said.

Those changes include:

  • Increasing Saskatchewan’s sales tax to six per cent, and applying it to residential construction work.
  • American tariffs on drywall and steel making materials more expensive.
  • All mortgages in Canada are now subject to stress tests after Ottawa tightened lending rules.
  • Tightened building codes and energy-efficiency standards for builders.

Last month, the province also introduced legislation updating Saskatchewan’s Builders’ Lien Act, which is supposed to ensure contractors receive payments within 28 days of an invoice.

The Saskatchewan Construction Association’s Cooper says it’s “now an average of 70 to 90 days for a contractor to be paid for work that’s already been completed.”

“This is not going to be the silver bullet that fixes issues,” warned Chris Guérette, the president of the Saskatoon and Region Home Builders’ Association.

Saskatoon and Region Home Builders Association CEO Christiane Guerette said last year’s PST hike combined with tighter mortgage rules had a significant impact on the affordability of new homes. (Radio-Canada)

She said 65 per cent of her members build fewer than 10 houses a year, and she’d prefer to watch the way similar “prompt payment” laws are first enacted in Ontario

“It takes away some of the freedom that businesses have to work things out on what would be best suited for that relationship between two companies,” Guérette said.

‘Even if we win, we’ve got to spend more money’

For his part, Trevor Stein said the law may help contractors like him collect money owed, but he warned the changes are also likely to make money for lawyers.

“Every court case we’ve had, even if we win, we’ve got to spend more money to get money,” Stein said. 

He said a more effective way of keeping local construction companies afloat could include the province putting out-of-province builders’ funds into a trust, until the job is complete.

Trevor Stein owns and operates Stein Electric, which has been in business since 1980 in Saskatoon. He and his wife have seven daughters. (Submitted by Trevor Stein)

“Out-of-province people are the ones who seem to leave quickly,” Stein said.

He said basic electrical and plumbing work will always be in demand, but Saskatchewan’s construction industry feels increasingly unpredictable.

“My receivables are crazy,” he said. “You just don’t know when you’re going to get paid.”

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Window repair or replacement is the responsibility of the condo corporation

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If the windows in your condo are hazy, drafty, or have rotting frames, it’s an indicator that they need repairs or outright replacement.

However, under the Condominium Act, it is the responsibility of the condo’s board to carry out such changes as a replaced window is a common element.

“Under the Condominium Act, a declaration may alter the maintenance or repair obligations of unit owners and the corporation but cannot make unit owners responsible for repairs to the common elements,” said Gerry Hyman is a former president of the Canadian Condominium Institute and contributor for the Star.

“A declaration for a high-rise condominium invariably provides that the unit boundary is the interior surface of windows. That means that the entire window — whether it is a single pane or a double pane — is a common element. Necessary repairs or replacement of a broken pane is the obligation of the corporation.”

According to Consumer Reports, selecting an installing windows replacement can be very overwhelming for homeowners. Therefore, if you aren’t covered by your condo’s corporation, it would be necessary to hire professional hands.

Wood, vinyl and composite windows need to be tested on how they can withstand various natural elements. For wind resistance, a window can be very tight when it’s warm but get quite cold too—especially when it begins to leak a lot.

Whatever the case may be, the bottom line remains that replacement windows can save you heating and cooling costs, but it’s best not to expect drastic savings.

Additionally, while getting a new window might help you save on your electric and gas bills, due to their expensive cost, it may take a long time to offset their cost.

Mid-last-year, the government withdraw a $377 million Green Ontario program that provided subsidy on windows to installers and repairers. Window companies had to install energy-efficient windows in order to qualify for the government subsidy that pays for up to $500 of a $1,000 to $1,500 window.

Due to the largely generous subsidies from the government under the Green Ontario program, a lot of window dealers were fully booked for months—even after the program had ended.

“We’re fine with the program ending, we just need more time to satisfy consumers,” said Jason Neal, the executive director of the Siding and Window Dealer Association of Canada, the industry group representing window dealers in a report.

According to Neal, the Progressive Conservatives acted hastily, making massive changes with no prior notice.

“No notification was given to us by anyone,” he said, noting he learned about the change through one of his dealers.

“It’s created a ripple effect.If they had just given us notice we would have pushed that down the line from the manufacturer right into the dealer right down to the consumer.”

Neal noted that he wasn’t particularly sad to see the Green Ontario program end, as it was “the worst rebate program in the history of the window industry.”

“It’s been horrible,” he said. “$500 a window has created such hysteria.”

However, despite the program ending about a year ago, numerous homeowners have been contacting window dealers consistently with concerns that they might not be able to afford replacement windows without the government’s subsidy.

“I understand their concern,” said window dealer Chris George. “I would suggest they reach out to their local representative of the government in their riding and let them know about their concerns.”

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7 Vancouver Real Estate Buying Tips

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The real estate market in Vancouver is turning around for good for everyone looking to purchase a home.

Previously soaring prices are now beginning to ease up, making it a perfect time for buyers—with real estate agents already getting ready for a very busy spring and summer season.

However, before splashing cash on a new property, there are some very important tips you need to know to ensure you make the most of the buyer’s market.

Here are some few expert tips that would guide you when purchasing a home in the sometimes frustration Vancouver seller’s market.

  1. Get adequate financing

It is very important that before you make the move to purchase a property, you put into careful consideration your credit score.

Normally, home buyers with lower scores use the secondary mortgage market to finance their purchase, as they’re more likely to pay a higher interest rate.However, it is advisable to get loan approval long before purchasing the house. This way, you are fully aware of how much you are able to spend—but never be tempted to borrow the maximum amount of money available.

“What’s your mortgage payment that you’re comfortable with? And take into the fact the taxes you’re going to have to pay, if it’s a strata – what the maintenance fees are, if it’s a home what type of maintenance are you going to have to pay in the future?” said Phil Moore, president of the Real Estate Board of Greater Vancouver in a report.

Always be careful of the type of loan you secure and ensure that you can comfortably afford it over a long period of time.

  1. Get a real estate agent

Buying a property without professional help is a very risky move and can be likened to choosing to represent yourself in court without a lawyer. While you might trust your negotiation skills, only realtors are permitted to present offers directly.

Therefore, it is necessary to get a professional real estate agent in the area to represent you. So, screen a few agents and select the best one who has in-depth knowledge of the markets and has a great reputation.

“They’re there to protect you. They’re there to walk you through each step of the process,” Moore said.

  1. Sign up for automated alerts

Most—if not all—realtors have access to the Vancouver real estate board’s database which is updated approximately two days before the public MLS website.

Therefore, you can request from your realtor to sign you up for automatic real-time alerts of all new listings. Doing this gives you an edge as you’re among the very first to know about new properties.

  1. Do a thorough inspection

After receiving an alert for a new listing, it is necessary to push almost immediately for an inspection from your realtor. In this current market, buyers now have time to make an inspection.

Making a quick inspection eliminates any surprises—as there could be major maintenance or repair issues that could spring up. Therefore, you can now table your offer based on the outcome of the inspection, with clauses about claiming your damage deposit back if everything isn’t as was advertised.

Additionally, if you notice that renovations were done, you need to be sure that it was permitted work and carried out appropriately. Failing to do this would ultimately lead to further cost down the line and simultaneously affect the resale value.

  1. Have a back-up plan

There’s always the possibility that everything may not go as smoothly as you’d want. From the inspection being a failureto the property not living up to your expectations—or not being able to agree on the closing date that matches with your needs.

However, a professional real estate agent will definitely help you get past all of these things. If you plan on selling the property as you buy, you can table that and make it part of the deal.

“You’ve got an option, especially in a buyer’s market: you can put in an offer subject to selling your place. So maybe you want to have a place lined up,” Moore added.

Additionally, building contingencies into your buying plan is necessary. Things such as unexpected delays in closing the deal, closing cost and moving costs that could result in added living expenses if that’s your permanent home.

  1. Don’t fall for the buyer frenzy

The Vancouver market buying frenzy that caused a serious climb in the prices a couple of years ago has ended. Thus, it is important not to get caught up in bidding wars with properties that have been deliberately under-priced—with the hope of initiating multiple offers.

“Some of the sellers have been on the market for over a year and they’re eager to sell. So what I’m saying to consumers is: you have a lot of choices, you’re in the driver’s seat, let’s go out and take a look at what’s available,” said Moore.

  1. Never be wary of multiple offers

When purchasing a property, don’t be afraid of multiple offers as you have the same opportunity as anybody else.

Typically, there are just a few offers below the asking price: a couple priced fully, and two or three above the asking price—depending on how close the fair market value is from the asking price.

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Do you know what kind of condo you’re buying?

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(NC) Condominiums can come in all shapes and sizes. But it’s important to know that not all condos are created equal when it comes to warranty coverage.

Whether you’re buying a condominium townhouse, loft-style two-bedroom or a high-rise studio, they are all classified as condominiums if you own your unit while at the same time share access (and the associated fees) for facilities ranging from pools and parking garages to elevators and driveways, otherwise known as common elements.

The most common types of condos are standard condominiums and common elements condominiums. The determination of how a condominium project is designated happens during the planning stage when the builder proposes the project and the municipality approves it.

When you’re in the market to buy, you need to know how your chosen condo is classified because it affects the warranty coverage under the Ontario New Home Warranties Plan Act. Standard condominiums have warranty coverage for units and common elements, but common elements condominiums only have unit coverage.

How could this affect you as the owner? If your condo complex has underground parking and, for example, there are problems with leaks or a faulty door, the condo designation will determine whether there’s warranty coverage.

If your unit is a standard condominium development, then the common elements warranty may cover the repairs. If it’s a common element condominium development, then repairs might have to be covered by the condo corporation’s insurance, which could impact your condo fees or require a special assessment on all the owners.

To avoid surprises, you should have a real estate lawyer review the Declaration and Description attached to your purchase agreement to be sure that you know the designation and boundaries of the unit you’re looking to purchase. Find more information on the types of condos and their coverage at tarion.com.

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