Now that winter weather appears to be behind us, Manitobans are turning their attention to preparing for spring yard work, gardening and planning on how best to enjoy the long and beautiful summer we all deserve.
Sometimes, that also means planning a summer renovation project for your home. Many homeowners are booking these summer projects with renovators now. But one thing to keep in mind when researching both your residential project and picking the right renovator to do it, is that when a deal sounds too good to be true, it usually is.
There are some key points to remember when you are offered a “really great deal” on home renovations, especially cash-only deals where the person doing the work is being paid “under the table.” These deals usually mean no taxes are paid and no permits are taken out for the work to be done. Possessing no receipt and no contract also means there is no record of the work being done on a dwelling.
If your contractor cuts a few corners and uses substandard materials, you have no recourse because there was no formal agreement. If the workmanship is shoddy or the renovation work caused some damage to your home, there is no actual record of the work ever taking place.
If you encounter problems a month or two down the line, don’t bother calling the person who did the work. Technically, they were never there. And rectifying a poor job can cost you much more than having the job done right in the first place.
Not taking out the proper permits can also lead to issues further down the road, especially if you intend to sell your home. Renovation projects done in undeveloped areas of your home, usually basements, require permits if there is any structural, electrical or plumbing work being undertaken.
If you have work done to finish a basement or attic that required proper permits but weren’t taken out, it could lead to issues finalizing a sale of your home in the future. It could also put the new homebuyer in a position of applying for permits on work already done and then incurring the added cost of rectifying any issues if the work was not done properly.
Legitimate contractors take out all necessary permits and ensure a licensed tradesperson does the necessary work. Using a legitimate contractor who ensures work is done the right way and is properly permitted, combined with a written contract, is your best insurance as a consumer.
It is in your own best interest to protect yourself when it comes to renovations. When you hire a contractor, get a signed contract with their GST/HST number on it, a detailed warranty and a receipt for all amounts paid. Also make sure your contractor has liability insurance and workers’ compensation coverage for all renovators entering your home.
Don’t assume your home insurance policy will cover the costs if something goes wrong with a cash-only renovation. Imagine you had a roofing company working on your home and someone fell and was injured. Without workers’ compensation coverage and a clear contract, you could be held responsible, possibly sued and your home insurance might not cover you. If that same worker wasn’t injured but accidentally caused a fire or a leak in your roof that resulted in water damage, you might be paying out of pocket to fix the damage if your contractor doesn’t carry liability insurance.
Make sure you get everything in writing from your renovation contractor on a formal contract and ask for receipts. Taking the right precautions now will make sure you protect yourself from future costs and headaches. When a cash deal seems “too good to pass up” for a renovation job, be aware it may end up costing you much more down the road.
Lanny McInnes is president of the Manitoba Home Builders’ Association. You can learn more about MHBA builders and renovators at homebuilders.mb.ca.
lmcinnes@homebuilders.mb.ca
