Research Paper: English 213 / Jeanette Novakovich

Risky Reno’s
By Corinne Levesque
Student Id: 9334122

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OUTLINE

THE ROLE OF THE PROVINCIAL GOVERNMENT

Government losses data

By the 1990ʼs the structure of the industry had collapsed. It had fallen into the category
of problematic sectors with a fiscal loss of up to 1.9 Billion.

The government grew concerned and began looking for ways to implement change.
The main targets were residential renovations and construction. A grant totaling 90
million was given to turn things around. By 2008, the grant had paid off and led to a
recovery of 1.9 Billion (http://www.ccq.org/B_IndustrieConstruction/B01)

Research concept, History and origin of this problem and how it developed
In 1995 residential construction hit a boom thanks to low interest rates, strong job
creation, lower taxes, increasing demand for housing plus the work market opening its
doors to a younger population as well as an increase in immigration.

This high level of demand lasted until 2004 and with such great demand come great
need and the construction industry almost quadrupled with 270%. (http://www.ccq.org)

Actions taken by the government to better the system

The fact that work sites are not regulated gave way for fraudulent acts on different
levels of Provincial taxes

THE STRUCTURE OF THE INDUSTRY

Employment rates in 2006

The sector of residential renovations is rarely run by large companies. This is mainly
due to the fact that only new home construction requires a large number of workers.
Most clients are re-building their homes one section at a time making it difficult to run a
large business. In 2006 an estimated 85% of companies hired an average of five
employees.

what are the RBQ, CCQ, MRQ

 RBQ (Régis du bâtiment du Québec)
 CCQ (Commission de la construction du Québec)
 Ministère du Revenu du Québec (MRQ)

Revenue Quebec has changed the way the all of these sectors communicate. All the
changes that were implemented during the last fifteen years are slowly eliminating the
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flaws in the system on the larger perspective. Eventually the goal is to rule out all illegal
activities within the residential renovations industry all together.

Credential system for workers within the industry

-Workers are not all registered,
-No record of work done when and by whom
-Work is no verified by anyone outside the private company
-CCQ, should be responsible for faulty work
-Guarantees

CLIENTS SUFFER

The experience from the perspective of the client on a personal level.

Clients are faced with a different kind of challenge when making the choice to do
renovations within their home. For most people, home is a private place and it is not to
be disturbed. Especially, by strangers, that you are paying in hard earned dollars and
whom shall see the colour of your tooth brush before 9 am and also prior to finishing
your coffee. This often instils stress and anxiety onto clients making rational decisions a
little more difficult to make.

Expectation in regard to the work in relation to their knowledge of those issues.

It is rare that a client will have sufficient experience or knowledge of the industry to
really grasp the situation. Rumours, televising ads, and especially recent fads on do it
yourself reality shows have shed some light on the reality of the work but often give a
false idea of how much things costs, how fast they can get done, and how cute the
workers are supposed to be, no, but every home is unique and it is up to the
professionals to find the best way to get the job done.

Lack of knowledge of the rules and costs.

Rules and costs are also relative to the home and the needs vary depending on a
variety of circumstances. This does mean that a client does not a road map for a
project. There is almost no way for a client to know for sure which of the information
being received applies to their needs. The only person a client can truly trust is the
contractor or the trade worker hired to do the job. This brings the issue of trust full
circle.
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WORKERS SUFFER

middle man between expectations of the homeowner and contractors

-Difficult to handle clients who are not calm about the situation.
-all the while the actual work has yet to be done. A lot of energy is lost with clientʼs
needs, questions, or demands. The job itself is usually very physical and requires a lot
of mental concentration. This alone is more exhausting than most work environments.

The industry has a tarnished reputation affecting the credibility of honest workers.
Often suffer the consequences of the wide spread reputation of construction workers
being rip offʼs and frauds. This can be difficult especially for the well intentioned
workers. Those who mean well end up loosing because of anotherʼs wrong doing.

The environment on the perspective of the trade workers.

Those who are legitimate, and professional: suffer consequences and basically pay the
price for the many mistakes that clients have suffered. Their work is questioned, the
prices are questioned, and the entire environment for those who are not ill intentioned is
simply destroyed by fraudulent workers making their work life stressful and negative.
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PROPOSAL

# The reason I chose to do my research paper on the structure of residential

renovations in the province of Quebec is due to my own personal experience working in
the field for five and a half years. Throughout my career, it has often come to my
attention that this industry is flawed on many levels and it is my hope to broaden the
publicʼs understanding of this industry which seems generally misunderstood. This
research paper is unique in the sense that it will not only shed some light on a very
popular industry, but will also place emphasis on the perspectives of the Provincial
Government, the contractors, trade workers as well as the clients. The principal goal is
to clarify many stipulations that even journalists and reality television shows do not
seem capable of grasping. The content of this paper includes the history of the industry
and how it came to be today, details of Government data, new and old laws, as well as
recent transformations in the structure and processes within various sectors of
residential construction. These changes are intended to bring hope to make the lives of
homeowners and workers more productive and better yet, more peaceful. The industry
of residential renovations is in need of a facelift.

The world of residential construction in Quebec is in a downward spiral. Clients,

workers and contractors seem to be spending more time and effort butting heads with
each other than on head nails. Consequently, flaws within the sector of residential
construction in the Province of Quebec are the creation of an “underground industry”
which gives rise to illegal activities, dangerously completed and thus uninsurable work,
over as well as under-pricing and Billions in financial loss for the Government. This
long-overdue Government legislation is finally getting the attention it deserves and
significant changes seem to be on the rise in the aim to protect all parties involved and
eliminate the possibility of getting hurt, cheated, or better yet, ending a project with
feelings of disappointment.

THE ROLE OF THE PROVINCIAL GOVERNMENT

An attempt to build a solid foundation within the construction industry in Quebec

is not a new concept. In fact, 1968 marks the year of many laws and regulations that
are still active today. Signs of a growing underground economy were alarming and
forced the government to create a union for all worker and contractors. The concept of
a union is that all workers, contractors and project permits are regulated within the same
association which in turn helps isolate the criminals from the “good guys”.

By the 1990ʼs the structure of the industry had collapsed. It was now considered
a problematic sector with a calculated fiscal loss of 1.9 Billion for the Province. The
government grew concerned and began looking for strategies to turn this around. A
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grant totaling 90 Million Dollars was given to target all sectors for Quebec construction
including residential renovations. The grant proved to be wise investment since by
2008, it was completely paid off and recovered a total of 1.9 Billion. (http://www.ccq.org/
B_IndustrieConstruction/B01)

In 1995, residential construction hit a boom. The combination of low interest

rates, strong job creation and lowered taxes created a new demand for housing. In
addition to this came the increase in immigration and a younger Canadian population
entering the market. With such great demands come great need and the construction
industry almost quadrupled at 270 % by 2004. (http://www.ccq.org/B_IndustrieConstruction/B01)

In recent times, the Quebec government introduced various programs in its

attempt to better the system. Renovation Quebec has made online pamphlets for the
“framework program” which reaches out to low-income and rundown areas.
Homeowners who wish to participate must apply directly to their municipality to find out
if they are eligible. The municipality is then managed by the Societe dʼhabitation du
Quebec under signed agreement. Once a project is approved it is subject to various
subsidies by both the Quebec government and the municipality. Home owners
participating in this program are only required to pay for one third of the total costs. In
the case of non-profit housing organization it is one-quarter of the cost. Such programs
are expected to stimulate the economy at an estimated rate of one dollar spent for
seven dollars invested back into the community, thus creating work and increasing
government fiscal gain.

# A second attempt to gain control over the underground industry is to force every
worker and contractor to hand in a record of worked hours per job site.

THE STRUCTURE OF THE INDUSTRY

The construction industry, like many large government operation, holds multiple
departments which are expected to fulfil specific tasks contributing the web of branches
that eventually tie together to cover the global needs of the industry. These
associations hold a conference every five years where laws and regulations are revised.
Together they create the basic structure for the industryʼs biggest divisions namely the
“commercial and institutional, residential, industrial and commercial, civil engineering
and road works” (R. v. Advance Cutting & Coring Ltd. [2001] 3 S.C.R. 209).

The major associations working within residential renovations are RBQ-Régis du

bâtiment du Québec, CCQ-Commission de la Construction du Québec and MRQ-
Ministère du Revenu du Québec all of which are necessary to assist the thousands of
small companies that deliver the largest number of contracts. In 2006 an estimated
85% of companies hired an average of only five employees because “most clients can
only afford to re-build their homes one section at a time and this can easily be done with
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an average of one to four different workers. It is mainly the construction of new homes
that requires a large number of employees” (Interview, JP-Belisle).

The associations mentioned above are working together to eliminate all illegal
activities by enforcing Quebec construction rules and regulation such as the Civil Code
of Quebec-1866, which includes the Building Act. Throughout the year, a contractor
may face a surprise visit by the CCQ-Commission de la Construction du Quebec and\or
the CSST-Commission de la sante et securite du travail who will verify the site for any
infractions relating to building and safety code violations, building permits as well as the
workers credentials and contractors licenses. (David H. Kauffman: dkauffman@dgclex.com)

# The underground industry is formulated by all workers that have not passed the
required tests to attain a certification. Obtaining certification can be done by “passing a
course or by learning in the field with another certified trade worker and accumulating
the required amount of hours to be approved by the board” (Interview, JP Belisle).
Certification must be renewed every year by presenting a financial statement of capital
requirements. This card provides workers with a union, salary standard and insurance.
“The need for insurance varies thanks to a standard no-fault provincial
coverage” (interview, JP Belisle)

# It is important to note that non-certified workers are not automatically

unqualified; it is simply an indication that they have either, chosen not to, or never
needed to acquire their cards in order to find work. Remaining in the underground
business is advantageous for many workers even though they loose the support and
protection of the Union should they face difficult times or suffer an injury, in which case
they will not be covered by workers compensation and will not receive insurance
through the CSST.

# The same choices can be made by a home owner who decides to hire
“underground” workers instead of the unionized. This type of process brings great
financial benefit but also raises the risk of doing business with ill-intentioned workers.
Such experiences are the source of many ongoing problems within the industry and
have brought much shame and stress to those who mean well. The concept of hiring by
referral has become the most reliable form of advertisement to counteract the effect of
frauds. In fact, some of the most successful trade workers and contractors have no use
for publicity.

# The choice to complete a contract through “cash” payments can be beneficial to

the home owners, contractors and trade workers because it may lower their tax
margins. This is only possible if everyone agrees, otherwise, those who failed to claim
the work in their tax records may face a convinction should the government make the
connection with another party who did claim that work.

# Another challenge that residential workers are faced with is the subject of flawed
work by a previous workers who have failed to conform to construction codes which can
lead to major problems in the future.
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# Work that is flawed will not be covered by insurance if it is found to be the leading
cause of damage in the home. In the majority of cases, the home owner is not aware of
this and does not have records of dates, company names, receipts, or even a name that
could help track down those responsible. Consequently, the risk is in the hands of the
present workers and the bill in those of the owners.

CLIENTS SUFFER

# Clients are faced with a different kind of challenge when making the choice to do
renovations. For most people, the house is a home and a very private place that is not
to be disturbed, especially, by strangers who will ring the door bell well before you have
had a chance to finish your coffee or even brush your teeth and who will take up what
feels like a tone of space. Later, they will need to move your furniture around to the
point where you cannot find anything anymore and will top it off by requiring to be paid
by non other than yourself. Although clients are perfectly aware of the challenges that
arise before starting up a project, the experience of it is always more intense than
anticipated.

# It is also rare that a client has sufficient experience or knowledge of the industry
to fully grasp the situation. The recent explosion of advertising and recent fads on “do it
yourself” reality shows may shed some light about the complexity of the work, but
generally, they tend to make matters worst. They give a false idea of how much the
materials and labour will cost and on how quickly the job can get done. All this is
because they ignore one main very essential detail, which is that every home holds
unique properties and therefore requires different preparations. From a worker-client
perspective this is where trust comes into the equation. Overall, only a professional has
the experience to determine the most suitable way to get the job done and it is up to the
client to give the worker space, credit and trust their knowledge. In this operation, there
are no charts to rely on when trying to determine the exact costs and time frames
required for work completion. This also applies to payment methods which create a loop
hole between the contractor and client. It is absolutely imperative that such details be
discussed before starting a project. Clients who are inexperienced can seek advice on
insurance web sites such as CAA-Quebec who clearly explain the steps to getting
started on the right track “after meeting with at least three contractors” then consider
that “he was recommended as being very qualified, and you found his estimate
suitable” (CAA-Québec, 2010- By Suzanne Décarie). National contract formulas are drafted in
French and in English by the CCDC - Canadian Construction Documents Committee
and the CCA – Canadian Construction Association for both the public and private
domains but these fail to include one very important document regarding the province of
Quebec, one that specifies how to operate final payments under the statement of the
“substantial performance of the work” (David H. Kauffman dkauffman@dgclex.com). In other
words, neither the client nor worker has a conformed government standard to rely on
while conducting business. Without a road map, it is difficult to stay on track and
conform to a good client-worker relationship.
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Recent news revealed that Quebec Mafia members influence the industry and
“bids on recent construction contracts have been 25%-30% lower than they projected”
along with affiliations to the Quebec government, explains Khadir, is that-“people in
Quebec are infuriated by what they hear everyday and they judge the government every
day” (Quebec Solidaire MNA Amir Khadir).

WORKERS SUFFER
#
# In the midst of all this action lies the key ingredient, the workers. The main
objective here resembles that of most people: do your best, donʼt mess up and try to
enjoy it as much as you can. It may seem like a simple thing but workers are often
trying to please more than just their boss. Trade workers in residential renovations
communicate with and work for a client, a contractor and at times will be lead by a
fellow trade worker. Each party involved holds a set of priorities that must be met
according to their expectations. This requires a great deal of resilience, patience,
maturity, understanding and most of all, time.
#
# The relationship between a contractor and a worker is usually well established
and is less likely to contribute to the tension in one home. Planning is everything in
working successfully side by side with other trade workers whose needs must be
combined with your own on a daily basis. Trade priorities are often determined by who
needs to finish their part before the other may begin.

# Unfortunately, this concept is difficult for most clients to grasp. Such clients will
make the mistake of hiring separate service providers and book everyone on the same
day. This kink leads to major inconveniences that can slow the project down, especially,
when certain workers are forced to head home and reschedule for the week end.

# When it is time to communicate with a client the most important approach is to

keep things simple. Personality has everything to do with the success of this
relationship because this is where the most important factor comes in, trust. Once the
trust is put to the test, all other matters will come second. Although this is in no way
related to the specialization of a trade it is a crucial detail to understand because it is,
after all, the client who will or will not refer you to their friends and family in the future
and it is up to them to decide if they are satisfied with your work.

# Once all of these matters are dealt with the trade work can finally begin.
Most tasks are equally demanding physically and mentally. It takes a specific type of
person to be able to endure the state of a work site. Often there are no wall power
installations, no running water, no kitchen, no heat and sometimes the stairs have been
removed making it that much harder to get around with tools. Every corner space is
filled with all kinds of equipments that make all kinds of noise. Hence, it is a bizarre
place to be.
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# The time spent on one project varies and often your work is divided between
many homes. This forces workers to constantly reorganize and readjust to a new site
that is filled with new rules and expectations. Experience is the life saver in this industry
because every home offers a different scenario and it is up to the worker to solve the
problems related to it. Unfortunately, the solution is not always obvious leaving the
possibility of making the wrong choice. Something that can quickly back fire.

# Wither a worker does not care about the quality of their product, or simply made
a false judgment, is difficult to determine once the job is complete. A workerʼs reputation
will be largely affected should this become a recurring theme in their career. Anyone
who is linked to faulty work is at risk of loosing approval from clients, contractors and
fellow team mates. Nevertheless, there are numerous ill-intentioned people involved in
this industry and it is up to each person to keep them at a distance. Since the 1970ʼs, it
has been an ongoing battle for trade workers to prosper above and beyond the
tarnished reputation that has caused, to no fault of their own, much unnecessary debate
between clients and workers
#
CONCLUSION
#
# The question remains about who we are to blame for decades of confusion within
one of the largest and most precious industries of our time. It has become obvious over
time that the extent of control that small companies hold is not substantial enough to
produce real change. Clients continue to feel threatened and victimized while workers
continue to try to convince the world that they are worthy of their word, and their work.

# To date, enough emphasis has been placed on the industry of residential

renovations. It is now time to conclude negotiation and make significant adjustments in
order to raise Quebec to the same level as all other Canadian provinces. The bottom-
line is that without change the cycle shall continue.

While it is easy to place a band aid on the many small conflicts that progress
everyday, one fact remains, the government holds the key and should be held
accountable for its negligence in building a solid, functional and reliable foundation for
the citizens of Quebec.
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ANNOTATED BIBLIOGRAPHY

1-# Government website: http://www.ccq.org/B_IndustrieConstruction/B01:

Confidentiality policy and other policies. © Commission de la construction du Québec,
2010.

The Commission de la construction du Québec (CCQ), created in 1987, is responsible

for applying the Act on Labour Relations, Vocational Training, and Manpower
Management in the Construction Industry (Act R-20), which provides a legal framework
for the industry. It is funded mainly by contributions from the total payroll of workers and
employers in the construction industry.

2-# Government website 0711 – “Construction Managers 

Analytical text”  http://www.servicecanada.gc.ca: 2010-09-01

Tax evasions, Provincial revenues. Data and laws are listed for public knowledge.
Operation and management of companies engaged in renovations within Quebec. In
association with Building Contractors of Quebec.

3-# Government website: www.habitation.gouv.qc.ca/en/: 24 Nov 2010 

Website of the Société d'habitation du Québec, the principal governmental organization

specialized in housing. This is a link for municipalities. Guidelines to follow are indicated
herein.

4-Government website: www.rbq.gouv.qc.ca: 1 Oct 2010

This is the site for licence contractors. Ensure the quality of construction work. Building
safety. Public access to information. The mission of the Régie du bâtiment du Québec
is to ensure quality of the construction work of buildings and the safety of the public

5-website: www.labour.gov.on.ca: “CONTRACTORS BIDDING AND WORKING ON

CONSTRUCTION PROJECTS IN QUEBEC”

Site is aimed at Contractors. Gives practical information pertaining to various issues of

health, safety, insurance for all carded workers.
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6-Gilles Thériault “R. v. Advance Cutting & Coring Ltd. [2001] 3 S.C.R. 209” 19 Oct 2001 

Constitutional law -- Charter of Rights -- Freedom of association -- Contractors charged

with hiring employees who did not have competency certificates and workers charged
with working without competency certificates as required under Quebec construction
legislation

7-Jean-Paul Belisle “interview by author ”, November 17th, 2010

This interview was conducted with an experienced non-carded residential worker. The
purpose of the interview was to confirm the information from the websites with day
workings.

8 -Suzanne Décarie “CAA Quebec – renovation and modes of payment”Translated by

John Woolfrey. 2010-

The information on this web page is to educate and guide clients or homeowners about
their specific options and responsibilities regarding a residential contract. The
information is meant to be used a guide.