Stoppage played havoc with schedules and delayed home renos
Peter Simpson
Sun
Ask builders to describe last November, December and January, and they’ll likely recall howling winds, torrential rain, heavy snow and flooding. Construction slowed to a crawl.
Following the cruel hand dealt by Mother Nature, home-building activity quickened, and builders looked forward to summer when tradespeople would make up most of the time lost.
Then something quite unexpected happened: Vancouver‘s civic workers went on strike.
Ask builders to describe July, August and September, and they’ll likely recall picket lines, no building permits, few inspections and mounting costs. Construction slowed to a crawl.
Who’s to blame? Call me Mr. Switzerland, but I’m not wading into the middle of that debate.
Nearly three months of inactivity had a profound impact on developers, builders, renovators, tradespeople, homebuyers and homeowners.
Two weeks into the strike, I asked industry members how they were coping. Most said the strike was a nuisance, and hoped it would be resolved soon.
Two weeks became a month, then two, and the nuisance factor morphed into a more serious state of concern.
The work stoppage played havoc with production schedules, delaying closing dates on new homes and completion of home renovation projects.
A multibillion-dollar economic engine sputtered. Millions of dollars worth of projects were in jeopardy. Financing costs mounted. Everyone was anxious for city management and union leadership to negotiate a resolution.
During the strike, developers, contractors and suppliers expressed to me the following concerns, in their own words:
– We have a $20-million project stalled because we cannot get permits to fill and grade.
– Three of our projects, with a combined value of $130 million, are impacted by the strike.
– We have five home renovation projects on hold, with an aggregate value of $2 million.
– I pay skilled carpenters $26 an hour to wash vehicles because we can’t risk losing them in case the strike is settled soon.
– Ours is a small company and this strike has put a huge strain on our cash flow. We have little money coming in, yet we are obliged to meet payrolls and pay suppliers.
– It is extremely frustrating. I have 12 months worth of renovation work waiting for permit issuance.
– My territory is Vancouver and my sales to builders and renovators dropped 80 per cent.
Not all construction was affected. Large projects underway prior to the strike were permitted to continue, with registered professionals — architects and engineers — performing inspections.
But if developers were waiting for, say, rezoning or approvals from some other complex city process, their projects were mired in the system indefinitely.
Some contractors hired videographers to document various stages of construction, hopefully proving code compliance to inspectors later. This practice was risky as after-the-fact city approval was not guaranteed.
City management supplied updates, and when they weren’t cleaning toilets and mopping floors in public facilities, they were issuing trades and building permits. Ed Neufeld, manager of the Building Inspection Branch, said more than 100 permits were issued during the strike.
Neufeld’s department also handed out more than 50 stop-work orders on illegal home improvements.
“All the stop-work orders involved zoning infractions or construction that was started without building permits. That might prove costly and inconvenient for homeowners, but they should have known better, particularly when it comes to their safety and liability,” said Neufeld.
Neufeld is right. Some homeowners, frustrated by the delays, caved in to pressure from unscrupulous contractors who offered to work under the radar for cash, without permits and required inspections.
That’s a mug’s game, as homeowners expose themselves to numerous safety and liability issues. If a worker is injured on the job, the homeowner — without a written contract, including proof of the contractor’s compliance with WorkSafeBC regulations, liability insurance and municipal requirements — is typically held accountable by the various authorities, including the legal system.
Some contractors didn’t miss a beat during the strike because they routinely work without permits and inspections.
After the strike, the city immediately provided details on how it would deal with the backlog while addressing the flood of new development and building permit applications. Neufeld believes it may take six months to clear the backlog. Add many new projects to the mix, and I suspect it may be closer to a year or more.
When asked about their post-strike experiences with city hall staff, industry members expressed positive sentiments, saying that given the circumstances, management and staff are performing well.
Meanwhile, we are delighted the civic workers are back on the job. Together we can get on with the business of building and renovating Vancouver.
Peter Simpson is chief executive officer of the Greater Vancouver Home Builders’ Association. E-mail [email protected].
© The Vancouver Sun 2007
