Registry would 'add protection' for homeowners, crack down on shady operators
With Newfoundland and Labrador facing an acute housing shortage over the next decade, a home builders' group is sounding the alarm about the need for a provincial registry to help contractors and protect consumers embarking on construction projects.
Alex Foster, the executive officer of the Canadian Home Builders' Association's N.L. chapter, has been pushing the provincial government since 2020 to establish a registry system, similar to British Columbia's. There, contractors must receive training and licensing before being allowed to build or renovate homes.
"It adds a little bit of consumer protection for people," Foster said in an interview with CBC News. “We're hoping that it will help legitimize the industry a little bit more as well."
Foster said a registry would help crack down on underground, unqualified operators who increasingly try to undercut competition by offering rock-bottom rates without carrying proper credentials or insurance. It would give homeowners peace of mind knowing the contractor they hire is legitimate.
Foster warned that without a registry, if someone hires an uninsured or non-registered contractor and there's an accident on the job, the homeowner could potentially be on the hook financially.
"We just wanted to make sure people are aware of what can happen when you use somebody who doesn't have the credentials that they should have," she said.
The home builders' advocate said her group first approached the government about implementing a mandatory registry three years ago, aiming to help regulate the industry and "legitimize" the contractor field. The association has offered to assist with education and training efforts related to the registry.
While the government has not provided an update on whether it plans to proceed with such a system, Foster pointed to a temporary provincial rebate program from 2020 that required homeowners to use registered, insured contractors as a positive sign.
"So it shows that there's a willingness there to do that," Foster said.
The urgent need for better consumer protections and quality control in home construction is highlighted by staggering housing data. A recent Canada Mortgage and Housing Corporation (CMHC) study found Newfoundland and Labrador must build a whopping 60,000 new homes by 2030 - beyond what's already planned - to meet escalating demand.
Read next: How many homes can Canada build?
"Right now we are in a housing crisis,” Foster added. “We need a lot more homes built."
But the high-pressure race to add housing supply quickly has also created a perfect storm, leading some desperate homebuyers to hire shady, low-cost contractors who lack proper insurance, safety certifications and warranties.
"What we're seeing now is during the housing crisis that there are a lot of people who are finding that a lot of the reputable builders and contractors are booked up,” Foster said. “So they're going to somebody who might do it a little bit cheaper.
"When you're going to the underground economy, a lot of the time you aren't actually saving anything and you're actually taking on a huge risk."
Foster urged homeowners to thoroughly research contractors before hiring, using her Canadian Home Builders' Association website to find pre-vetted builders and renovators who are up to date on required licenses, insurance coverage and workmanship warranties.
"That gives you that little additional piece of knowing that you're protected," she said.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
