Michael Steele / RESCON
RESCON recently held a very successful and engaging seminar with a lively panel of four experts called “Tarion: Partner or Adversary.”
The people who attended this sold-out event learned that the new-home warranty program is indeed a partner of the residential construction industry. However, as was discussed frequently by the panelists and members of the audience, this relationship has room for improvement.
The members of the panel included: Scott Rowand, manager of stakeholder relations with Tarion; real estate lawyer Leor Margulies of Robins Appleby; developer David Speigel of Tribute Communities, and senior property manager Naseer Abbasi of Del Property Management.
I was honoured to moderate the event.
Tarion explained the content and purpose of its builder bulletins, and the members of the panel and audience responded in a very interactive and informal discussion.
The discussion, focused around Tarion builder bulletins (BB):
- 49 – Claims Process, Condominium Common elements
- 42 – Customer Service Standard
- 28 – Release of Securities
- 24R – Warranty Coverage
- 20 – Chargeable Conciliations
- 19R – Field Review Reporting
Among the issues discussed included the time it takes for Tarion to react to requests from clients and stakeholders; Tarion’s lack of a method for communicating information on technical issues and emerging concerns to stakeholders during the time they are under review by Tarion; status of Tarion’s review of B28; the process used and factors considered by Tarion when assessing a Builders Risk; B19R clarification of timelines for filing milestone and final reports, content of Final Report, how the initial assessment of risk can impact the release of securities and how to minimize or prevent chargeable conciliations.
A sample of some of the recommendations offered to Tarion includes:
- Provide clear messaging in respect to chargeable conciliations to differentiate the requirements between conciliations relating to suites and common elements.
- Develop a matrix for the release of securities to enable a builder to recognize when additional actions may be required to ensure a timely and expected release.
- Review how to deal with homeowners who act in bad faith.
The general consensus of the participants was that Tarion is too lenient, homeowners are given too many opportunities to drag out the process of addressing deficiencies and that the current system is unfair to builders.
The seminar concluded with a request that Tarion ensure that there is courtesy, clarity and fairness in its interaction with builders.
RESCON is grateful to our knowledgable panel of experts for generously sharing their time and to those who attended for taking interest in this important factor of residential construction. It’s important for our members to acquire a better understanding of Tarion to strengthen the relationship between the warranty program and builders.
We look forward to hosting more events with Tarion in the future.
To see photos of the event, visit RESCON’s Facebook page.
Michael Steele, B. Tech. (C.M.), is the Director of Technical Standards at RESCON. Reach him at firstname.lastname@example.org, @RESCONtech or at 905-760-7777, ext. 110.