Ch. 20 BUILDING DESIGN AND CONSTRUCTION

Building Codes

-People sometimes object to the fact that construction or alteration of buildings requires a permit and/or an inspection.

-These requirements are in place to ensure not only that the structural elements are strong and durable, but also that proper methods of construction have been employed in assembling the building

-Building codes specify requirements for new building or the substantial renovation of existing buildings, such as:

• Structural strength to resist forces acting on buildings

• Resistance to spread of fire

• Resistance to heat movement and vapour transmission

• Adequate means of egress

• Adequate light and ventilation

• Resistance to sound transmission

• Protection against smoke penetration

-When determining if an older home meets current standards (e.g., in quality of insulation), the answer will depend on the year the home was built and whether the home has been renovated since that time.

-In Canada, building codes are regulated by the provinces, but all follow or have made changes to synchronize with the National Building Code of Canada.

-The National Building Code is updated approximately every five years, with its most recent update in 2020.

-The BC Building Code is based on the National Building Code and was updated in 2018.

-The City of Vancouver adopted the City of Vancouver Building Bylaw (VBBL) in 2019, which is based on the 2018 BC Building Code

BC Housing Licensing and Consumer Services

-To protect new home purchasers, builders formed a National Steering Committee in 1972, which initiated actions leading to the establishment of Home Warranty programs in each province

-In British Columbia, Licensing and Consumer Services is a branch of the British Columbia Housing Management Commission (commonly referred to as BC Housing)

• licensing residential builders and building envelope renovators province-wide;

• administering owner-builder authorizations; and

• carrying out research and education that benefits the residential construction industry and consumers.

-All residential builders who engage in, arrange for, or manage all or substantially all of the construction of a new home in British Columbia must be licensed through the Licensing and Consumer Services and the new home must have a warranty insurance policy.

Homeowner Protection Act

-This epidemic of water-related damage, known as the “leaky condo crisis”, motivated the BC government to pass the Homeowner Protection Act (the HPA) in 1998.

-to increase consumer protection and improve the quality of residential construction in BC.

The HPA introduced three new regulatory requirements:

1. All residential home builders must be licensed and registered;

2. All new homes must be registered in the New Homes Registry; and

3. All new homes must be covered by home warranty insurance, unless exempt.

Licensing and Registration of Residential Builders

- A residential builder is defined as a person who engages in, arranges for, or manages the construction of a new home, and includes developers and general contractors.

-To obtain a residential home builder licence, applicants will have to satisfy the following criteria:

• provide proof of 24 months of experience managing or supervising residential construction within the previous 5 years; and

• demonstrate competency in a number of areas, including construction management and supervision, construction technology, financial planning, customer service, home warranty insurance, and legal issues.

-To maintain their licence, residential builders are also required to complete continuing professional development courses in these areas.

-The licensing requirement ensures that all persons or companies who build new homes in BC are qualified to do so, and it allows Licensing and Consumer Services to monitor licensee performance by maintaining a residential builder registry.

-Real estate salespeople should be familiar with the residential home builder registry and should use it to determine whether a builder of a new home is properly licensed and in good standing.

New Homes Registry

- Licensing and Consumer Services also maintains a New Homes Registry for both single detached homes and multi-unit homes (e.g., strata buildings)

-to allow new home buyers to obtain several important pieces of information, including:

• whether the home was built by a licensed residential builder or by an owner builder;

• whether or not the home is covered by home warranty insurance and the commencement date for that insurance; and

• the name and contact information of the warranty provider.

-the online version of the New Homes Registry only contains homes that were registered after November 19, 2007.

Home Warranty Insurance

-Without proper insurance in place, a new home must not be built or sold.

-a person must not sell or offer to sell a new home:

• while the new home is being constructed; or

• within 10 years from the date an occupancy permit was issued;

unless

• the new home is covered by home warranty insurance; or

• the home is exempt from the requirement for insurance.

-The warranty requirement applies for the first 10 years after an occupancy permit was issued, regardless of the number of people that have owned the house.

-In the HPA, the definition of “new home” also includes homes that have been “substantially reconstructed.

-one of two situations usually has to be present:

• more than 75% of the home’s structure above its foundation has been removed or replaced; or

• when a new foundation has been laid and the total amount of new structural components, including the foundation, makes up 50% of the completed structure.

- The minimum period of coverage that must be offered by a home warranty insurance policy varies according to the type of defect:

• 2 years for materials and labour;

• 5 years for the building envelope, including water penetration; and

• 10 years for any structural defects.

=> “2-5-10” insurance

Owner-Builder Exemption

-Under the HPA, a person who intends to build a home for personal use may apply for an “owner-builder authorization,” which must be secured before construction begins.

-Once authorized, owner-builders are exempt from the licensing and warranty insurance requirements discussed earlier

• the person must be an individual (rather than a corporation);

• the person must intend to personally use the home for at least one year from the date of occupancy and may not rent it during that period; and

• the person must intend to engage in, arrange for, or manage all or substantially all of the construction of the new home.

-In order to prevent the exemption from being misused, the HPA imposes restrictions on the resale of owner-built homes:

1. an owner-builder must not sell or offer to sell a new home while that home is being constructed or within 12 months after the house has been built

2. if an owner-builder (or subsequent owner) decides to sell the home within 10 years of initial occupancy, they must provide disclosure to the prospective purchaser that indicates whether or not the home is covered by home warranty insurance. => owner-builder disclosure notice

3. if the home is not covered by home warranty insurance, the owner-builder is personally liable to cover the cost of any defects that would have been covered by the standard 2-5-10 insurance policy.

Technical Safety BC

-Construction in British Columbia is also subject to Technical Safety BC (formerly BC Safety Authority)

-responsible for licensing contractors, making sure they are qualified to do regulated work, and issuing permits for electrical and gas installations in most municipalities in British Columbia.

-there are regulations that describe the technical obligations and requirements for contractors, individuals, and equipment used in working in the electrical, gas, boiler, and elevating technologies.

-These regulations also describe specific obligations regarding qualifications and permits.