Ontario Home Builder - Renovation 2017

THERAPY SESSIONS: WHEN RENOVATORS NEED TO BE MARRIAGE COUNSELLORS P.42 LOOKING DOWNSTAIRS TO OPEN UP LIVING SPACE P.34

PICKUP TRUCKS BECOMING THE NEW LUXURY VEHICLE P.66

WHO IS ADDRESSING CONTRACTORS’ MOST PRESSING CONCERNS? P.59

OHBA.CA RENO 2017 | $5.00

T H E R E N OVAT I O N I S S U E

Ramsin Khachi

from Khachi Design Group P.50

KITCHEN EVOLUTION Adapting design to meet society’s changing needs

Don’t Worry, They’ve Got You Covered P.85

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Contents

34 34 Downstairs is Looking Up

50 Fast Food

Whether it’s to accommodate additional family or to provide a staycation sanctuary, the solution increasingly lies beneath

42 Stuck in the Middle

Major renos can make marriage counsellors out of contractors.

Here’s how to keep a tear-down from causing a break-up

9 One Voice Giving the renovation sector the respect it deserves 11 Ontario Report Ontario builders prevail at nationals, no ordinary day at the Park for OHBA, the 2017 Industry Leaders’ Dinner, Eric DenOuden steps to the fore of the CHBA, entries open for this year’s Awards of Distinction and more!

19 Frame of Mind Copenhagen’s innovative, community-building 8House ohba.ca

50 The changing eating habits of modern society have forced kitchen design to evolve. So are traditional dining rooms becoming extinct?

66 59 Checking off the Boxes

Government policy and OHBA advocacy are helping to address the most pressing concerns of the booming renovation industry

21 Inside Storey Navigating the complicated waters of financing for small builders and renovators with CYR’s Rena Malkah 25 Top Shelf Our look at the latest in builder and renovator gear includes a powerhouse handheld blower, “engineered air” insulation, a vibrationreducing hammer, a Bigfoot sighting, controlling your locks from afar, mixing and matching stone facing, new metal railings and more!

66 Keep on Truckin’

What was once a no-nonsense pickup has transformed into a high-tech luxury vehicle. Here are the hottest rides for 2017

77 Better Building Beating the mortgagee to the money, Tarion’s Construction Performance Guidelines come to life in new tutorials, Houzz reno survey results, Weiser’s Kevo lock technology and keeping track of your tools

therapy sessions: when renovators need to be marriage counsellors p.42 looking downstairs to open up living space p.34

pickup trucks becoming the new luxury vehicle p.66

who is addressing contractors’ most pressing concerns? p.59

ohba.ca RENo 2017 | $5.00

t h e r e n ovat i o n i s s u e

Ramsin Khachi

from Khachi Design Group

p.50

Kitchen evolution Adapting design to meet society’s changing needs

Don’t Worry, They’ve Got You Covered p.85

85 Product Focus Manufacturers are coming to grips with safer, more ecofriendly roofing and flooring 94 Words to Build By Tom Cochren of Thomas Cochren Homes

A CONSUMING PASSION

The kitchen has become the chameleon of home design, says Ramsin Khachi of Khachi Design Group in Oakville.

ONTARIO HOME BUILDER RENOVATION 2017

5

The official publication of the Ontario Home Builders’ Association RENO 2017 | Vol. 33 Issue 3

EDITOR

Ted McIntyre ted@laureloak.ca ASSOCIATE EDITOR

Norma Kimmins, OHBA ART DIRECTOR

Erik Mohr GRAPHIC DESIGNER

Ian Sullivan Cant COPY EDITOR

Barbara Chambers CONTRIBUTORS

Avi Friedman, Stephen Hamilton, Tracy Hanes, Dan O’Reilly, Philip Porado, Joe Vaccaro COVER PHOTOGRAPHY

Mike Watier ADVERTISING SALES

Tricia Beaudoin tricia@laureloak.ca Cindy Kaye, ext. 232 cindy@laureloak.ca PUBLISHER

Sheryl Humphreys, ext. 245 sheryl@laureloak.ca PRESIDENT

Wayne Narciso PUBLISHED BY

Laurel Oak Custom Publishing laureloak.ca

ohba.ca Ontario Home Builder is published six times per year (Winter, Spring, Renovation, Summer, Fall, Awards).

All rights reserved. No part of this magazine may be reproduced without the written consent of the publisher © 2017.

For address corrections please email info@laureloak.ca or Phone: (905) 333-9432.

Single copy price is $5.00. Subscription Rates: Canada $12.95 + HST per year, USA $29.95 USD.

Order online at http://ohba.ca/subscribe-or-buy-past-issues CANADIAN PUBLICATION MAIL AGREEMENT NO. 42011539 ISSN No. 1182-1345

WINNERS FOR 3 YEARS IN A ROW! 6

ONTARIO HOME BUILDER RENOVATION 2017

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8

ONTARIO HOME BUILDER RENOVATION 2017

ohba.ca

One Voice

THE SIZE OF ONTARIO’S RENOVATION INDUSTRY

$

$28.5

Billion in investment value.

The largest single wealth builder for many Ontario families

$10.3

Billion in wages

175,412

Jobs in home renovation and repair

THE RISING RENO BOOM Ontario’s renovation sector is too big to ignore

BY J O E VACC A R O

THIS EDITION of Ontario Home Builder magazine marks our fifth anniversary of the annual Renovation issue. Five years ago we recognized that the renovation sector deserved an issue that focused on its unique, specific needs, challenges and opportunities, compared to the new home residential construction sector.

We based that decision partly on money. The fact is, the professional renovation industry is big business in Ontario. Last year, $28.5 billion was invested in this sector, up from $26.1 billion in 2015, and up even further from the $24.3 billion invested in 2013, when we launched OHB’s Reno issue.

It’s a sector that continues to grow and which has overtaken the new home residential construction sector in terms of monies invested and employment. In 2016, there were over 175,000 jobs created in the renovation sector, compared to about 161,000 jobs in new home ohba.ca

THE RENO SECTOR IS A KEY PLAYER IN THE LONG-TERM PROSPERITY OF OUR PROVINCE construction. Last year, with almost 75,000 new housing starts in Ontario, $27.7 billion was invested in new home construction, which came close but did not surpass the strength of the reno sector. It’s been a clear trend: In each of the past five years, more money has been invested in renovation and repair in Ontario than in new home construction.

Clearly, the professional residential renovation sector is a key player in the long-term prosperity of our province on

a number of levels, including economic investment, job creation and maintaining and upgrading the over 4.8 million existing homes in Ontario.

But despite their huge impact, many renovators are left asking— in the words of the late Rodney Dangerfield—“I don’t get no respect!”

That has come about, in part, because all too often the renovation sector has been lumped in with new home construction in government rules, regulations and legislation that doesn’t always recognize that running a reno company can be very different from running a new home building company.

Many renovation firms are smaller, often family-owned businesses that do it all—sales, marketing, design, communicating with clients (see p. 42), overseeing apprentices and employees, ensuring permits are in order, attending to the jobsite and, more often than not, ‘hands-on-the-tools’. And while I know some builders do the same, generally speaking, these duties are more delegated in new home building.

As frustrating as it can be for professional renovators coping with government policy, we are starting to see positive signs. Our feature story, “Checking off the Boxes” (p. 59), outlines some of the progress that OHBA advocacy work over the past five years is netting for our renovator members. From WSIB and the Ontario College of Trades to the underground economy, there are signs of government action into the aspects of professional reno work.

That success is a testament to the tenacity and unique drive of renovator members across the province and, in particular, those who serve on OHBA’s Renovators’ Council, who have persevered in their quest to educate, inform and advocate government about this vital $28.5 billion dollar industry. OHB

JOE VACCARO IS THE CEO OF THE ONTARIO HOME BUILDERS’ ASSOCIATION

ONTARIO HOME BUILDER RENOVATION 2017

9

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Ontario Report

WINNING BIG AT CHBA NATIONALS CONGRATULATIONS to the many Ontario builders, renovators and marketing teams that brought home 1st place hardware at the 2017 National Awards for Housing Excellence at the CHBA Conference held in St. John’s NFLD earlier this month.

CHBA President Eric DenOuden noted: “Our award winners represent the best of the best in new homes, home renovations, community development and marketing across Canada and the housing industry takes great pride in their accomplishments.”

COMMUNITY DEVELOPMENT AWARD

OHBA AT QUEEN’S PARK CHBA members responded enthusiastically to the new 39-category awards program with a record number of entries in 2017.

HOME RENOVATION AWARDS ANY ROOM

Lucchetta Homes, Welland: “The Residences At Hunters Pointe”

Just Basements, Ottawa, “Don’t You Dare Say “Man Cave”

NEW HOME AWARDS

WHOLE HOUSE – UNDER $100,000

ATTACHED HOMES – UNDER 1,500 SQUARE FEET

Alair Homes Georgian Bay, Midland: “Adams Road”

Rinaldi Homes, St. Catharines: “Optimist Lane”

MARKETING AWARDS

DETACHED HOMES – PRODUCTION | 2,501 TO 3,500 SQUARE FEET

SIGNAGE & LOGO

RND Construction and Christopher Simmonds Architect, Ottawa: “Riverpark Green - The Orchard”

Great Gulf and Hullmark Developments Ltd., Toronto : “home” (Concept, Creative and Production: Community Agency)

DETACHED HOMES – CUSTOM | 3,501 TO 6,000 SQUARE FEET

PRINT AD

RND Construction and Christopher Simmonds Architect, Ottawa: “Revelstoke Drive”

Losani Homes Ltd., Stoney Creek: “Central Park” (Concept, Creative and Production: McOuat Partnership)

DETACHED HOMES – CUSTOM | OVER 6,000 SQUARE FEET

SALES OFFICE – LOW RISE

Gonell Homes, Etobicoke: “Asaria Developments III”

Zinc Developments Inc., Toronto : “Wabash 35” (Concept, Creative and Production: The Brand Factory)

NET ZERO HOME AWARD

DESIGN/DECOR CENTRE

Doug Tarry Limited, St. Thomas: “The Northgate Net Zero Home”

OakWood, Ottawa: “Taylor Creek Drive Design Centre”

ohba.ca

OHBA hosted its annual Queen’s Park Advocacy Day in late March, with builder and renovator members from across the province meeting with MPPs, Cabinet Ministers and policymakers to educate and advise them on how provincial policy decisions impact the supply, choice and affordability of housing across Ontario.

“OHBA recognizes that everyone is discussing and debating why home prices keep going up in communities across Ontario, and most acutely across the Greater Golden Horseshoe,” explained OHBA CEO Joe Vaccaro.

“OHBA represents the provincial industry that delivers 95% of all new housing supply in Ontario, and our members welcome the opportunity to share their challenges and frustrations with MPPs regarding new housing supply in their communities. The decisions made by MPPs during this legislative session will have a direct impact on housing supply, choice and affordability for Ontarians.

These important decisions are all connected and will ultimately impact the market and the price of housing that consumers are facing.”

Queen’s Park Day offered an opportunity to reconnect with key individuals on issues of importance to the industry and opened the door for future meetings.

ONTARIO HOME BUILDER RENOVATION 2017

11

Ontario Report

INDUSTRY LEADERS’ DINNER 2017

ONTARIO’S ERIC DenOUDEN LEADS CHBA Congratulations to Eric DenOuden, who was elected as the 2017/2018 President of the Canadian Home Builders’ Association at the national organization’s annual conference this 12

ONTARIO HOME BUILDER RENOVATION 2017

OHBA Past President Dick Brouwer with Tarion President and CEO Howard Bogach.

Douglas Stewart (left) with OHBA President Neil Rodgers. Stewart received a special recognition award in appreciation for his service as Chair of OHBA’s Land Development Committee and support of the local, provincial and national associations.

month in St. John’s, Nfld. Eric had previously held the position of 1st Vice-President of CHBA. Eric served as OHBA president from 2013-2014 and was a member of the OHBA executive committee for four years. In addition, he is a past president of the Quinte HBA and has served on numerous committees at the local association, earning Member of the Year honours in 2004.

With over 30 years’ experience in the home building and development industry, Eric is the founder, owner and president of Hilden Homes Ltd. Since its formation in 1985, the Bellevillebased company has built over 1,000 homes and contributed to the development and growth of the community in the Quinte area.

Eric is also heavily involved in charitable community development projects within Ontario, where he chaired the Children’s Safety Village project in Belleville. In addition, he has travelled to several developing countries to assist locals in the construction of a variety of community projects.

Elections to the 2017/2018 CHBA board were underway at press time, so please visit chba.ca for announcements on Ontario member representatives.

Ten OHBA Past Presidents attended this year’s Industry Leaders’ Dinner.

BE AN EARLY BIRD AND SAVE! The 2017 OHBA Awards of Distinction opened for business on May 1, and for the first time we are offering a reduced entry fee until May 31. So enter early and save on your entry fees online at ohbaaod.ca!

The online submission final deadline is FRIDAY, JUNE 16. There will be absolutely no extensions!

Finalists will be announced in early August and the program will culminate in the Awards of Distinction Gala on SEPTEMBER 26 in conjunction with OHBA’s Annual Conference in Niagara Falls.

The 39-category awards program honours the vision, innovation and expertise of some of Ontario’s most creative and talented builders, renovators, designers and marketers.

Visit the website for full categories and entry details: OHBAAOD.CA.

ohba.ca

PHOTOGRAPHY: RODNEY DAW (INDUSTRY LEADERS DINNER 2017), TANIA JANTHUR (ERIC DENOUDEN)

OHBA’s 2017 Industry Leaders’ Dinner capped off a day of meetings with local association presidents and executive officers on April 24 in Vaughan. The annual event provides an opportunity to acknowledge and thank leaders for their work in the industry, association and in their communities. That group included students from the B.O.L.T. (Building Opportunities for Life Today) program. Launched by Tridel in 2013, the program provides scholarships for post-secondary education and training for those interested in pursuing a career in construction.

Ontario Report

TARION CELEBRATES 2017 HOMEOWNERS’ CHOICE AWARDS RECIPIENTS Recognizing the best in customer service, four distinguished home builders were awarded the Tarion 2017 Homeowners’ Choice Awards, presented April 19 in Woodbridge.

More than 8,500 homeowners responded to a survey to rate their builder, based on their experience before, during and after they moved into their new home. More than 52,500 invitations to complete the survey—conducted by a third-party research firm—were sent to homeowners who took possession between October 1, 2015 and September 30, 2016. To qualify for the Awards, builders must have at least five new home possessions during the survey time frame and a specified number of completed questionnaires must have been received.

This year, Lockwood Brothers Construction, members of the Greater Ottawa HBA, were honoured with the inaugural Ernest Assaly Award, which celebrates an Ontario builder that demonstrates a commitment to building quality and innovation, customer service and community involvement. Akin to a lifetime achievement recognition, the award honours Ernest Assaly, Tarion’s first Chair, and is determined by Tarion’s board of directors.

“Both of these awards celebrate excellence in the industry and raise the bar for all builders,” said Tarion President and CEO Howard Bogach. “They showcase industry leaders who pour their heart and soul into the customer experience and the communities in which they build and live.”

Lockwood Brothers Construction, recipient of the 2017 Ernest Assaly Award

TARION WINNERS & FINALISTS 2017 SMALL VOLUME CATEGORY (5-20 POSSESSIONS PER YEAR) WINNER: DAVENPORT HOMES, PETERBOROUGH

LARGE VOLUME CATEGORY (MORE THAN 100 POSSESSIONS PER YEAR) WINNER: ARISTA HOMES LTD., VAUGHAN

Greene Homes, Kingston JF Homes Construction Ltd., Strathroy Lockwood Brothers Construction, Oxford Station Luxart Homes Inc., Carleton Place MacGregor Enterprises Ltd., Kincardine​

Mountainview Homes, Thorold Tamarack Development Corp., Ottawa Tartan Homes, Ottawa The Daniels Corporation, Toronto Tribute Communities, Pickering

MEDIUM VOLUME CATEGORY (21-100 POSSESSIONS PER YEAR) WINNER: TALOS CUSTOM HOMES LTD., RICHMOND

HIGH-RISE CATEGORY (MORE THAN 100 HIGH-RISE POSSESSIONS PER YEAR) WINNER: THE DANIELS CORPORATION, TORONTO

Hayhoe Homes, St. Thomas Klemencic Homes, Trenton Neilcorp Homes, Almonte OPUS Homes, Vaughan Wrighthaven Homes Limited, Elora

Menkes Developments Ltd., Toronto Onni Group, Toronto Pratt Homes Barrie, Barrie The Conservatory Group, Markham Tridel, Toronto​

RenoMark Recognized in Vaughan Congratulations to BILD’s renovator members for scoring a big win with the City of Vaughan when it passed a bylaw to license renovators. The city now recognizes BILD’s RenoMark program as a City-Approved Professional Association (CAPA).

As such, BILD renovator members have been granted a 20% discount on the applicable licensing fees. In addition, if renovators carry a valid licence in another municipality, they 14

ONTARIO HOME BUILDER RENOVATION 2017

are entitled to the renewal rate for the Vaughan licence. Licensed renovators are also required to have a placard identifying the business name and City of Vaughan licence number to be visibly displayed on the dashboard of on-site work vehicles.

City staff will issue licences as of May 22 and will also be putting together e-brochures so that BILD renovator members will have easy access to bylaw-related requirements. ohba.ca

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Ontario Report

REACH FOR THE STARS THREE-DAY BUILD TO BENEFIT YOUNG FAMILY OHBA Past President Doug Tarry and his team of volunteers have launched Project Hope, which is set to build a Net-Zero-Ready home from June 9-11, complete with bleachers for the community to watch its progress. The foundation will already be in and backfilled, with the concrete floor poured, but the rest of the home will be built on site in just three days!

Project Hope honours Johnny Nooren, a local area building official who was much admired and respected in the St. Thomas and Elgin community. Nooren died last summer, leaving his wife and two small children grieving and financially challenged.

Proceeds from the sale of the home will be donated to the family.

Tarry credits OHBA Past President James Bazely, along with 2014 OHBA Member of the Year Matt Pryce—both past presidents of Simcoe County HBA—with helping him get the project off the ground.

OHBA members are invited to volunteer, sponsor or donate towards the home building project. In addition, organizers welcome financial support for award-winning filmmaker Aaron Huggett, who will bring the story to life. While the house build will be the backdrop for the film, the main story is about overcoming despair and a community rising up to give hope to a family whose lives have been devastated by the death of their husband and father.

If you would like to contribute to the project in any way, contact Doug Tarry at doug.tarry@dougtarryhomes.com or 519-631-9300.

16

ONTARIO HOME BUILDER RENOVATION 2017

CONGRATULATIONS to EnerQuality, which recently reached a major milestone: labelling its 75,000th Energy Star home.

Since its modest start of just 96 homes in 2006, the first year of labelling Energy Star for New Homes (ESNH), EnerQuality now labels more than 6,000 homes a year—homes that, on average, are 20% more efficient that typical Code-built homes. Mattamy Homes, one of the early adopters of Energy Star, was the builder of EnerQuality’s 75,000th ESNH home.

In 2005, EnerQuality, in partnership with Natural Resources Canada, developed ENSH for the Canadian market. “Energy Star has been the most

JOIN US FOR OHBA’S 2017 CONFERENCE

Registration is now open for the 2017 OHBA conference with early bird rates in effect until September 1.

Hosted by the Niagara Home Builders’ Association, the annual conference is set for September 24-26 and will provide exciting, educational seminars along with ample networking opportunities, an extensive trade show and lots of entertainment and fun.

Join your colleagues from across the province and take advantage of early registration rates.

Visit CONFERENCE.OHBA.CA.

effective tool in the governnment’s box to influence the marketplace towards greater energy efficiency and less carbon,” said EnerQuality President Corey McBurney. “No other program has connected both with consumers and industry as Energy Star has.”

A 2015 Environics-Genworth survey found 72% of first-time homebuyers said energy efficiency is an important factor in home buying. The emphasis on energy efficiency rates even higher than proximity to schools or public transit.

EnerQuality’s long history of involvement in Energy Star for New Homes was recognized last year with two federal Energy Star Canada Awards: Participant of the Year and Sustained Excellence.

MIKEY’S WALK OF LIFE OHBA members are invited to join Team Mikey on Saturday, May 27 for the 2017 Walk of Life, to be held at the Ontario Science Centre and E.T. Seton Park.

Participation will help raise funds and awareness for the Mikey Network, which aims to place publicaccess defibrillators in high-risk locations across the GTA. Established by Heathwood Homes and its parent company Herity in memory of partner and friend Michael Hart Salem, who died of a sudden cardiac arrest while golfing, the event will feature a one-, threeor five-km walk, a five- or 10-km run, chair exercises for seniors and lots of fun activities for kids.

To sign up and for further information, visit MIKEYNETWORK.COM.

ohba.ca

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Frame of Mind

CYCLING TO THE TOP Copenhagen’s innovative 8House challenges builders to think outside of the traditional box

PHOTO: JENS CEDERSKJOLD

BY AV I F R I E D M A N

IF YOU LIVE in an apartment building or have recently visited one, you’ve probably entered a lobby, headed to the elevator, exited on your floor and walked to the unit. Sounds simple, but should we rethink this typical design?

Canada’s housing landscape is undergoing a transformation. Whereas in the past half-century the single-family detached home was the typical first ownership for most, the current affordability challenge means many future first-time buyers will likely begin—and perhaps remain—with an apartment.

The trend parallels the call for urban densification and the need to reduce consumption of natural resources.

The mounting popularity of apartment building construction across the nation is also fuelled by aging boomers.

Many are trading a costly and hard-tomaintain home in the suburbs for a unit in the city. Living next to amenities and places of entertainment and possibly ohba.ca

spending winters in the warm south is still Canadian seniors’ favourite plan.

Another new market segment reflects recent lifestyle transitions. Singles and young couples on a tight budget have chosen to live in apartments near their work. They may buy a place, no larger than 400 sq. ft., known as a micro-unit, with a folding bed, sailboat-sized kitchens and a countertop for dining. When they decide to host company, they share larger living and dining areas, common to all building occupants.

Despite those significant trends, the industry has hardly taken steps to reinvent apartment buildings. Yes, facades have become slicker, lobbies fancier and attractive features added to the roof’s terrace, but the typical double-loaded floor served by elevators still dominates.

But you will change your mind about apartment building design after visiting 8House on the outskirts of Copenhagen in the newly developed Ørestad district.

Designed by the Danish firm BIG, the 10-storey, 476-unit building with its spectacular view of the Copenhagen Canal has been dubbed a “3-dimensional neighbourhood” by its architects.

Shaped like the number 8—hence the name—with declining edges that make it look like a pyramid, the structure is a mix of several ingredients not commonly found in apartments. Dwellings include 150 townhouses, conventional apartments and micro-units.

In addition to residential areas in the project, you can find stores, a café and amenities such as a daycare. Those who wish to work near home can rent office space on the ground floor. To enhance a community spirit, the developer included a 500 sq. m. gathering room where common issues are discussed and residents get to know their neighbours.

To help foster a healthy lifestyle, two beautifully landscaped courts (the voids of the 8) provide space for children to play under the watchful eyes of their parents, who can look down from upper balconies. You can also spot outdoor exercise machines for adults, and of course—this being in Copenhagen— lots of places to park bicycles.

But perhaps the coolest feature is a combination bicycle and pedestrian path that can take residents all the way to their 10th floor townhouses.

Walking along the sloping ramp, you pass the “front yards” of units, where you can spot lawn chairs, toys, flower pots and bikes.

The 8House has offered a jolt of energy and much-needed vision of how apartment buildings should be conceived. Winner of the World’s Best Residential Building at the 2011 Architectural Festival in Barcelona, among other notable recognitions, the project demonstrates that buildings can suitably respond to emerging social needs in an innovative way. It challenges conventional approaches— something Ontario builders might want to emulate. OHB DR. AVI FRIEDMAN TEACHES ARCHITECTURE AT MCGILL UNIVERSITY. HE CAN BE REACHED AT AVI.FRIEDMAN@MCGILL.CA. ONTARIO HOME BUILDER RENOVATION 2017

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ONTARIO HOME BUILDER RENOVATION 2017

ohba.ca

Inside Storey is not owner-occupied, then the loan ratio might be decreased to 75%.

WHAT ARE SOME OF THE FACTORS IN DETERMINING THE INTEREST RATE OF THE FIRST MORTGAGE?

It depends on the borrower’s qualifications, with respect to credit score, net worth and income. If the income is provable by tax returns and meets the ratios required, then an “A” lender rate can be obtained. As of now (April 1), the rate would be around 2.89%. If the borrower is self-employed, we can take the bank statements as proof of income with respect to gross deposits, and use that income to qualify for a “B” lender. For that, today’s rates would be around 3.99%.

If the borrower cannot provide that, a private lender might offer 65% to 70% at a 6% to 7% interest rate. There may be lender’s, broker’s, appraiser’s and legal fees charged.

STEP TWO?

DO THE MATH Financing projects often requires a helping hand for small builders and renovators

BY TED McINTYRE WITH RENA MALKAH, PRESIDENT OF CYR FUNDING

ARRANGING FINANCING is so exciting. OK, maybe not, but knowing how to finance acquisition, renovation or construction costs—and the “takeout mortgage” upon completion, if required—can be worth tens of thousands of dollars to you. And that’s exciting.

Few understand the process like Rena Malkah. President of Thornhill-based CYR Funding Inc., Malkah began her career in the mortgage industry in 1974 and has been actively dealing with commercial and residential financing ever since, assisting a variety of clients such as private investors, commercial and industrial property investors, condos and apartments. First, second or third mortgage? Short-term bridge loans and consolidation refinancing?

Rena eats, breathes and sleeps mortgages. ohba.ca

Malkah, who is also president of high-end home builder Kosher Construction, became the first female president of the Ontario Mortgage Broker’s Association in 1984, and served as Education Chairman of the OMBA from 1982 to 1983. Over the past three decades, she has cultivated a substantial mortgage portfolio for CYR Funding through residential and commercial mortgage origination.

OHB: WHAT’S STEP ONE OF A REAL ESTATE TRANSACTION? RM: The acquisition! If the property

is going to be owner-occupied by yourself or a client for whom you are doing the renovation, then the first mortgage for the purchase could be up to 80% of the purchase price. If it

The second step is to obtain the renovation or construction money. This usually has to be arranged as a private construction second mortgage. Financial institutions do not like to lend money for renovations. They normally want completed houses. When financing construction we look at the completed value of the property.

Let’s say, for example, there is a project with the following assumptions: The acquisition cost is $600,000; down payment is $150,000; the first mortgage is $450,000 (75% of the total); and the budget to totally renovate, add a second floor or addition has a hard cost of $300,000. ($100,000 in soft costs, such as interest and all professional fees, is included in the hard costs of acquisition and reno budget.)

The completed value is $1.4 million.

Then you subtract 13% for HST, which is $182,000 (real estate plus legals is 5%, and after-resales tax is 8%).

The latter may not be applicable if the property is owner-occupied That leaves you with a net sale of $1,218,000. Deduct the $1 million cost and you’re left with a profit of $218,000.

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HOW DO YOU DETERMINE THE COMPLETED VALUE?

That’s determined by an appraiser, who would need the drawings, specifications and detailed budget. Financing 65% of the completed value, or .65 x $1.4 million, means a total loan of $910,500.

Less the first mortgage when purchase, that leaves $450,000. The balance of $460,500 is your second mortgage, which is more than enough to cover hard and soft, renovations and construction costs of $400,500 plus fees.

In addition, 10% of the loan amount will be held back in accordance with the Construction Lien Act. HOW DO YOU DETERMINE THE INTEREST RATE ON THE CONSTRUCTION SECOND MORTGAGE?

It depends on the ratio of the loan to completed value. For example, as of April 2017, a 65% loan ratio would be 8-9%; a 70% loan ratio would be 9-10% and a 75% loan ratio would be 10-12%.

The interest is not charged on the full amount of the loan—only on the amount advanced, which usually cuts the interest in half. The funds are advanced in draws. The advances would be based on the amount of work done or the percentage complete. Let’s say the borrower wants three draws of approximately 1/3, 1/3, 1/3 (the percentage is usually determined by the appraiser). The $450,000 then would be advanced, as follows: 1/3 - $150,000 less $15,000 for a 10% construction lien holdback, and less arranging fees and legals of $20,000.

1/3 - $150,000 less $15,000 for a 10% construction lien holdback, less subsearch legals of $500 and a progress inspection of $250.

1/3 - $150,000 less $15,000 for a 10% construction lien holdback, less the same subsearch legals fee of $500 and progress inspection of $250.

The 10% lien holdbacks are released 45 days after completion. “Substantial completion” is 97%. To start the 45-day count you will need an occupancy certificate, the final inspection of the appraiser and also publish the completion in a trade paper. Simply put, if the lender does not hold back 10% of the renovation/construction ohba.ca

advances, any liens registered by contractors, subcontractors or workers would have priority over the mortgage!

FINANCING IS A KEY ASPECT OF RENOVATING, ISN’T IT?

The more you can use other people’s money, the more projects you can do.

A lender will also want to have a full application, net-worth statement, credit bureau, articles of incorporation of all the borrower’s companies, as well as two years of financial statements, two years’ personal tax returns and any notice of assessments, and resumés of borrowers or the renovator/ builder listing descriptions of projects completed to demonstrate experience, on top of drawings, budget, building permits, construction contracts, if any, and an appraisal report.

It’s always best to obtain financing for a generous budget with contingencies. In case of unexpected surprises or cost overruns, you won’t have a shortfall. Also, 10% of the money is not available until 45 days after completion. By then, you may have sold the house or refinanced it, and not even need that final 10% holdback.

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THE NEXT STEP?

The final step is if you have been unable to sell or if you wish to keep the property to owner-occupy or to rent. In that case, the final permanent mortgage could be arranged—say 75% of $1.4 million completed value, which would be $1,050,000. Again, the rate will depend on the borrower qualifications.

You will have recouped 100% of all your cost and own a house and you will have your $150,000 original cash back to do another project, if you wish.

SEEMS LIKE A LOT OF MATH TO KEEP TRACK OF.

It sounds self-serving, but seriously, using the services of an experienced mortgage broker will save you time and money in the long run. They can help advise on the best way to structure the financing for your situation. For example, if the borrower owns other properties, it might be cheaper to finance existing properties.

The same principles apply for custom homes being built on spec with some minor renovations. But that’s a discussion for another time. OHB ohba.ca

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From upgrades to added living space, basement renovations are gaining in popularity

BY T R AC Y H A N E S

ohba.ca

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35

R

emember the basement rec room where Wayne’s World characters Wayne Campbell and Garth Algar filmed their cable access TV show? Many baby boomers spent much of their youth in similar subterranean spaces characterized by cheap wood panelling, well-worn furniture and a dungeon-like atmosphere.

Wayne and Garth’s in-home TV studio would look dramatically different in 2017; it would be equipped with wet bar, movie screen and games room to entertain rock star guests; they’d lounge on stylish sofas and warm to the glow of a gas fireplace.

No longer playing second fiddle to the main floor, the basement has come into its own as a functional and desirable living space—and created growing opportunities for renovators.

“Twenty or 30 years ago, the basement was an ancillary space for the kids to hang out or a place for storage,” says Guy Solomon, founder and CEO of Penguin Basements that serves clients throughout the Golden Horseshoe. “Today, with homes getting smaller, people need extra space.”

The basement is more cost-effective means of getting that space than building a new addition or moving to a larger home.

The trend has become so popular that some renovators, such as Penguin Basements and Ottawa’s Just Basements, are specializing solely in those type of improvements. Many other renovators and custom builders offer basement renovations as part of their roster of services.

Bruce Bowden of Walden Homes, a Toronto company that provides custom home-building and renovations, says demand for those bottom-floor renos comes both from owners of new homes (that usually don’t have finished basements included as 36

ONTARIO HOME BUILDER RENOVATION 2017

a standard feature) and from owners of older homes looking to create living space in downstairs cellars. While he says it’s hard to pinpoint the typical cost of a basement renovation, as each is so individual, Bowden notes they are significantly less than the average $300 per-square-foot cost for a new addition.

Another plus for homeowners is that unlike main-floor improvements, such as creating an open-concept layout or building a new kitchen, “it’s a renovation you can live through,” says Bowden.

And as far as finishes are concerned, forget faux wood panelling and cheap features. Basements have gone upscale to the point where they are rivalling or surpassing the main floor in terms of style and quality finishes.

“Basements are valuable real estate and should be treated appropriately in terms of design and planning,” says Norm Lecuyer, president of Just Basements in Carp, Ontario. While many of his Ottawa-area clients are looking to create a place where their kids can hang out or to add an extra bathroom, his company gets a lot of requests from people who no longer have children at home.

“We do a fair number of baby boomers’ basements,” says Lecuyer. “They buy a bungalow or smaller home, then they realize they downsized too much and want more space.”

Solomon says it’s not just a matter of requiring additional living space; it’s about separation of space, since modern main floors are so open, it can be difficult to accommodate several activities simultaneously, such as trying to do work on the laptop at the kitchen table while your son and his teenage friends are playing a video game in the great room. That’s where the basement can be invaluable. ohba.ca

They are equally popular as adult retreats for spaces such as wine-tasting rooms, games and pool rooms—even saunas and home gyms. Walden says his most unusual request was for a putting green. Solomon installed a synthetic rink in one of his projects.

But clients shouldn’t think of such upgrades as financial investments, cautions Solomon. “I don’t recommend that people finish a basement to flip a house,” he says. Statistics back up such advice. According to the Appraisal Institute of Canada, basement renos have a medium return on an investment, with a ROI of just 50% to 75%.

But that number might rise in the near future. “If you need extra space, you can assume the next homeowner will too. And with the prices of homes today, a lot of buyers won’t have the money to renovate a basement, and will appreciate that the work has already been done. ” THEATRE TIME Lecuyer’s clients enjoy watching movies as a family and their basement reno wishlist included a screening area with a projector and screen, wet bar, a games room and plenty of storage. The basement also includes a fitness room. The double-sided fireplace area drove the design and was designed to hide four posts and a waste stack. The flooring is laminate, the bar has custom cabinetry (custom work is often required when space is restricted) and generous pot lights keep the space well illuminated.

BASEMENT TRENDS OPEN CEILINGS: A hot new trend in basement design is to leave the ceiling, with its trusses, beams, pipes and bulkheads, exposed and then painting it—pipes, trusses and all—white or another colour. By forgoing a dropped ceiling in a space where sufficient headroom can be a problem, the room will feel taller. The bonus is that it gives an urban loft vibe, especially when paired with barn-style doors, which is another popular trend.

MOVIE ROOMS: Call it “Cinema in the Cellar.” The basement is the logical place for an in-home theatre where a lack of natural light is a plus. Big screens, either fixed or that drop down, coupled with a ceiling-mounted projector and surround sound, make for an excellent night of movie watching. For an even more authentic experience, seating can be tiered on different levels.

FASHIONABLE FIREPLACES: Fireplaces are becoming a must-have on many homeowners’ basement reno wish list. They can help to hide posts and stacks and can be used in combination with flat-screen TVs. There is a lot of design creativity evident in some designs incorporating fireplaces in basements. For instance, wide, shallow gas fireplaces are especially striking along a long basement wall, or ones that are offset rather than centred.

FLOOR FINISHES: Forget carpet for basements—new laminates, engineered hardwood and vinyl tiles or planks look great, are hard-wearing and practical. Solomon uses commercial-grade vinyl almost exclusively and says it doesn’t scratch, doesn’t have to be replaced if water leaks into the basement and it won’t expand or contract. Bowden says some clients want ceramic or porcelain tile, but it’s not a great choice if there’s no in-floor heating. However, it works well with in-floor radiant heating. ohba.ca

A PLACE FOR ADULT KIDS OR AGING PARENTS Home improvement shows may have fuelled homeowners’ wishes for downstairs secondary suites or income-producing rental apartments, but that can get complicated, warns Bowden. Some municipalities don’t allow them and there are also rules about putting bedrooms in basements. Solomon says most homeowners don’t appreciate how extensive the requirements are for creating basement apartments, including minimum ceiling heights, natural light provisions, points of exit, etc. A good contractor should educate them about those rules.

While adult children may be living with their parents or moving back, Lecuyer notes the reverse is also occurring. And the basement is often the most logical space to accommodate them. “We’re seeing a trend of people bringing their parents into their homes and we may do a bedroom, bathroom and kitchenette and install features such as accessible showers or lifts on stairs,” Lecuyer says.

GOING DEEP For some clients with large luxury homes and big budgets, Walden Homes has, in some cases, added an extra basement to create two levels below grade. This extra basement can house amenities such as a spa, massage and yoga rooms or even underground storage for cars. In some Toronto homes, Bowden says they’ve created basements that extend underground beyond the back walls of the house. It’s an ingenious solution where municipal setback rules limit building an addition, but where the rules don’t apply below grade.

CHALLENGES Basements present unique renovation challenges, though— especially in older homes built when no one imagined that they’d be used as living spaces. “You have to deal with the footprint you’re handed” and make the most of designing in a restricted space, Lecuyer says. Furnaces, ductwork, posts and beams are all obstacles to be worked around, though they can also be the inspiration for some creative architectural features.

Moisture is a common problem and the solution often begins ONTARIO HOME BUILDER RENOVATION 2017

37

“We do a fair number of baby boomers’ basements. They buy a bungalow or smaller home, then they realize they downsized too much and want more space.”

outside the home. In Toronto, many older homes were not built with weeping tiles, thus drainage can be an issue. One of the first steps is to ensure a home has weeping tiles that drain into storm sewers or a sump pump (weeping tiles and sump pumps weren’t mandatory until 1980). A lot might have to be re-graded or a downspout repositioned to ensure water doesn’t drain next to foundation walls.

Any basement wall cracks or leaks should be repaired and proper vapour barrier installed. And for basement renos, water-resistant materials such as steel studs and magnesium board are a good idea, says Solomon.

Stairs can pose another dilemma. One of the problems in old houses is that foundation walls are thicker than on the main floor, so stairs leading to the basement had to be narrow.

Many older homes have side-door entrances with landings, and eliminating that door can accommodate the widening of stairs and making the stairway less steep. But, as Bowden reminds, it’s always easiest to configure the new stairs if the main floor is being renovated at the same time.

Low ceilings are another common concern in older basements. If a homeowner wants to excavate a basement to make it deeper to create more headroom, that’s a complex issue, as it will call for underpinning to secure the

NEW HOME BASEMENT This basement in a model house by Rinaldi Homes in Fonthill’s Rosewood Estates provides attractive, functional living space. Light grey walls, pot lights and a window wall supply ample illumination. A corner gas fireplace is a focal point, while a table and chairs tucked by the open staircase provide an inviting spot to sit for conversation and drinks.

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FOOD AND WINE The client at this home in Maple wanted a basement for entertaining and requested a wine cellar and a galley-style food prep area,which features a full-size refrigerator, stone countertop and large island. To create the luxurious 400 sq. ft. wine cellar with walnut racks and marble floors, a cold room door was removed, walls were insulated with spray foam and humidors installed.

foundation. Bowden says this type of job requires special permits, the help of a structural engineer, soil tests and regular inspections. In that case it’s easier if a rear addition is being constructed at the same time.

As basements tend to be colder than the main floors, Bowden says the ideal solution is to have a zoned heating and cooling system that treats the basement space separately from the rest of the home. In a new basement, radiant in-slab heating is a great solution and can be used in conjunction with a combination boiler system.

One of the common myths about basements is that they are plagued by poor lighting, says Lecuyer, who points out that most people use their basements in the evenings when it’s dark anyway. “We do try to get windows in the right location, but having good lighting is more important than natural light.”

Screening rooms don’t require any natural light, but it would be desirable in a fitness room, for example.

Solomon agrees. “For a lot of activities, such as TV or movie watching or playing pool, you don’t need a lot of light.” But Solomon notes that light colours play a big role in making a space feel larger, while wall sconces can add light and LED lighting can brighten up even a dark room.

The ingredients for success in a basement reno are similar to that of any other upgrade in the home, says Solomon: consultation and design, planning (which includes permits, finishes, work orders) and execution.

“Take your time in the planning stage, have good communication with homeowner and make sure you can deliver on what you’vew promised,” he says. “It’s a major build and not to be underestimated.

People expect the work to be done professionally, they want quality finishes and expect delivery on a much higher level.” OHB 40

ONTARIO HOME BUILDER RENOVATION 2017

JUST RELAX The homeowners are wine appreciators and wanted a way to display their stock. They also wanted a space separate from the TV area, so if some are watching hockey in the adjacent room, the others can sit and enjoy chatting over a glass of wine. To accommodate this reno, Just Basements had to relocate a well system and run water pipes behind the wall. They came up with a feature wall that displays the wine, yet hides the pipes, creating a space that is very much an adult retreat.

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STUCK IN THE

MIDDLE A couple’s dynamic can make therapists out of renovators

BY P H I L I P P O R A D O I L L U S T R AT I O N BY M I C H E L L E K E N N Y

P

eople will argue over drawer pulls.

“I was finishing up in a house, doing some paint touchup, and the couple was trying to decide on two different styles of handle for their kitchen cabinets. They just couldn’t come to an agreement,” says Garnet Northey, owner of Spotlight Home & Lifestyle in Bridgenorth.

Both were getting frustrated because they’d just come home and their kids were hungry. “They said, ‘What do you think?’ and I didn’t want to get in the middle of it because they were starting to argue,” Northey says.

Time for a creative solution. Northey innocently asked if they liked both options. They did. So he told them to count ohba.ca

the cabinet doors and drawers and then multiply that number by 4. It came to 68.

“I said, ‘Okay, that’s $68. Let’s put that one on and if you don’t like it, you can spend $68 and replace it with the other one,” he says. “And they just looked at me stunned—these were both academics—and said, ‘That is brilliant—how did you do that?’”

It was simple, but people spending close to $50,000 on a kitchen renovation frequently are blind to cost-effective fixes.

And while they’ll probably never change those drawer pulls, they’ll rest easy knowing they have the option.

While the renovation process itself generally won’t spark ONTARIO HOME BUILDER RENOVATION 2017

43

feuds between members of a couple, Brendan Charters, Development Manager of Eurodale Developments Inc. in Toronto, says they can sometimes exacerbate existing tensions. “The home is an emotional space. People are spending a lot of money and have varying visions of what the final outcome will be,” Charters says. “I think if there are underlying issues, they can get wedged open during the process of renovating.”

This is especially true if the project is a strain on their budget or if their work and family lives are already stressful.

We’re Here to Help Far from running when couples start squabbling, most renovators we spoke with voiced a willingness to wade in to reach a solution. Some even enjoy the process.

“I kind of jump in. My business is focused on relationships.

So avoiding the conflicts would almost hurt that relationship,” says Shane Van Barneveld, owner of Shane Renovations in Ancaster. “They’re looking at me to help, so I oblige. Seven or eight years ago I may not have done that, but I’m at the point in my career where I’m confident in my opinions and 4 4

ONTARIO HOME BUILDER RENOVATION 2017

will tell them what I like.”

If a couple hems and haws about adding a few feet to a peninsula, or removing a wall completely, as opposed to keeping it and saving some money, Van Barneveld will chime in with, “I know it’s not my money, but you’re going to get so much more value with this decision.”

That approach helped him mitigate a disagreement over a staircase replacement earlier this year. The couple had gutted nearly the entire first floor of their home, including the removal of load-bearing walls. But they’d stopped at the stairs because the project was $5,000 over budget.

“The husband wanted to clean it up a little bit, put on a new carpet runner and be done with it,” says Van Barneveld. “I said, ‘What you really should do is pull this out completely and put in a nice, new maple staircase. You’re going to have a brand new main floor and then this staircase that is seven feet from the front door is not going to fit. It’s going to look like you ran out of money.’”

His advice won the day.

Still, it’s important not to let one or the other half of a couple try to pull you to their side to win an argument.

“You’re really only as exposed as you allow yourself to be,” ohba.ca

“They’re looking at me to help, so I oblige. Seven or eight years ago I may not have done that, but I’m at the point in my career where I’m confident in my opinions and will tell them what I like.” says Stefanie Coleman-Dias of Coleman-Dias3 Construction, Inc. in St. Thomas. “The last thing you want to do is side with one person or the other.”

Coleman-Dias has had situations where one homeowner expressed frustration with a spouse or let her know a disagreement had occurred.

She simply refuses to acknowledge their comments and resumes the business conversation from wherever it left off.

“If someone calls and says, ‘I just had a huge fight with my husband and he’s really grumpy,’ I’ll say ‘Okay, so I’ll be there at 12 o’clock per our schedule, unless you would like to reschedule?’” says Coleman-Dias. “If you acknowledge their disagreement, you can get sucked into it.”

And, at times, you just have to level with people, says Steve Barkhouse, owner of Amsted Design-Build in Ottawa. “We study personality profiling and communication skills and we use them all in difficult situations,” he says.

“However, sometimes you just need to honest ohba.ca

Stepping Away From DIY Disasters Tradition dictates men are supposed to know everything about their homes: from its construction to the ins-and-outs of its mechanical systems.

Sometimes this romantic notion leads to an inflated self-confidence that can mix badly with easy access to a home-improvement warehouse.

“I’ve had clients who had started a renovation project themselves,” says Jamie Adam, president of Pioneer Craftsmen in Kitchener. “The husband was all over it.

And the wife, probably at some point, was pretty concerned, but off they go.”

Adam was once asked to correct a project that had been ongoing for seven months, during which time the couple had lived without a kitchen.

Things were getting tense.

“There were things they’d already purchased and ways they wanted us to go about completing the project,” he says. “And I figured out there was no way they were going to be willing to make the changes or invest the money into doing it properly.”

Electrical code issues were in play, as well as things like cabinets placed a mere 24-inches apart. “You couldn’t even walk between the cabinets,” says Adam. “We don’t want to do that kind of work.”

While the clients had “a ton of pain going on,” they still hadn’t reached the threshold where they’re willing to do it right, so the contractor politely refused the job.

Says Adam: “We just tiptoed away.”

Tear Down & Split Up A renovations and relationships survey from Houzz reveals the level of stress a major renovation can have on the most solid of relationships. But life, at least, tends to be happier upon completion, assuming you make it that far. A few stats from the survey:

* 12% of couples admit to considering separation or divorce mid-renovation. * 46% of couples admit to finding the renovation process with their significant other to be extremely frustrating.

in five respondents admit to making a significant decision during * One the renovation process without telling their partner, from tearing down walls and picking paint colours to choosing furniture and appliances.

out of five survey respondents reported feeling more relaxed in * Four their home after completing their project.

of respondents do more entertaining and 41% report an increase in * 42% their level of happiness with their significant other.

ONTARIO HOME BUILDER RENOVATION 2017

45

and blunt. You explain the situation and the cost of time, money and frustration for all if we are not all on the same page.”

The Deadly Duo Having their home ripped apart and coping with strangers all day, every day, makes people feel vulnerable, says Coleman-Dias, which means the projects that really break up a couple’s routine—kitchens and bathrooms— create the most friction. “If it’s the only bathroom they have, it’s going to push the stress level up and that puts everyone on edge. And then the higher the price of the project or the longer the duration, the more stress is involved.”

Van Barneveld says kitchens are tough because they’re focal points for the home. “It’s the room you spend the most time in when you’re awake,” he says. “It’s got to be functional, it’s got to look amazing and you’ve got to be able to show it off.”

Generally, he says, husbands stress over the budget, while wives want the kitchen to look like it belongs in a magazine. “We try to work with both of them,” Van Barneveld adds. “And I may have to find a creative way to get her the 46

ONTARIO HOME BUILDER RENOVATION 2017

backsplash she wants.”

Luckily, kitchens are usually just one component of a larger renovation, so one way to deliver the dream backsplash, cabinets or countertop is to persuade the couple to compromise on a feature in another room—something less conspicuous such as a window treatment in a family room or the flooring in a basement.

Further, Van Barneveld tries to manage construction stress by ensuring the couple knows the existing kitchen will be pulled out on Day One. Such communication helps them plan for that inconvenience.

Bluntness also works for Jamie Adam.

The president of Pioneer Craftsmen in Kitchener tells clients a typical kitchen reno takes six to eight weeks, because it involves removing walls and relocating fixtures. His crew will set up a temporary kitchenette somewhere else in the house; often near a laundry room, since it provides a sink that can suffice for washing dishes.

“We had one client who, ramping up to the project, made double batches of meals and put them in a deep freezer.

They went through their

Timing is Everything Want to know if clients are stressed? Just take a look at what time they answer your emails, says Steve Barkhouse, owner of Amsted Design-Build in Ottawa.

He once worked with a couple who could only talk about their renovation project after their three kids were in bed. And, of course, by then they were exhausted. Emails started coming in at 1:30 a.m., and the blunt communiques revealed frustration—both with each other and with the project.

“After our team noticed several emails coming in at this time, with the same tone, we realized what was going on and sat down with the homeowners face-to-face,” Barkhouse says.

That cleared the air.

“Email communication can be both a saviour or a pitfall to the renovation process,” he says. “And it’s important to monitor when and how it is used—both for the well-being of the homeowners and to the relationship with the renovator.”

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whole six-week renovation without eating out once,” Adam says. “She didn’t need to worry about trying to cook up something and having to do all the preparation work. It’s no fun to wash vegetables in a laundry sink.”

In warmer weather, he adds, a lot of clients will cook outside on a barbeque for the duration.

Beauty and the Budget Every renovator we spoke with says men and women split on where to draw the line between dream features and cost. In most cases, the man expresses the bulk of the money worries. “I have clients that will call up and say, ‘My wife says we need to do this and I don’t want to do it, so come out here and tell her how much it’s going to be,’” relates Adam. “If you’re trying to convince one of them to do the project, it’s never going to be successful, and as a contractor, I’m just going to be stuck in the middle of it and trying to put out fires all the time.”

Fortunately, says Barkhouse, most clients do put in serious thought before starting a renovation. “They have discussed it together. They see there are a few things that one wants and the other does not, and they can’t fit everything into the space or budget.

So they want the other to give up on something.”

The Coin Flip Garnet Northey, owner of Spotlight Home & Lifestyle in Bridgenorth, was sitting in front of a couple who had done too much research on flooring. Each was terrified of making the wrong decision and kept trying to tip the final choice back to the other.

Time was ticking and Northey had to keep the job on schedule. “I told them, ‘The fact you cannot make a decision tells me you’ve either made completely the wrong decision, or you like them both; So, let’s back up and ask, ‘Are these the wrong floorings?’”

They thought about it and said they liked both equally. Northey proposed a coin toss, a technique he’s used a few times, but which he always follows up with a question about whether the couple is happy. Usually, they are, but occasionally they’ll come out and voice preference for the other option.

“But the coin made them say it,” he says. “It forces the decision.”

Barkhouse takes those lists to his design team, which can often find a solution that covers all the wants— anything from a beer fridge in the kitchen island to a gas stove with a barbeque centre.

Northey says that even though men worry more about the budget, unlike 20 or 30 years ago, they don’t always control that budget—a dynamic that can uncover the fact that many men simply don’t want to do renovations in the first place.

“They think, ‘The bathroom works; why do we need to do anything? I’d rather buy a new 4x4 or a snowmobile,’” he says. “I’ve heard

Talk Before You Build A little planning alleviates a lot of stress.

“When I meet with clients, we’ll go through the design, and if they’re not in agreement with one another, they talk about it and I sit and listen to both sides,” says Stefanie Coleman-Dias of Coleman-Dias3 Construction, Inc., in St. Thomas. “And, only when it seems like it’s the right moment, will I interject with pros and cons to both sides, and maybe even offer a third option.”

She says this proactive approach establishes costs upfront and prevents the panic that happens when people try to make design decisions after a project’s underway.

Brendan Charters, Development Manager of Toronto’s Eurodale Developments Inc., tries to get couples to appoint a project lead to serve as the main point of contact.

“Design often involves both parties, so we can flesh out the collective and unified goals. But the build requires a family CEO who can make decisions for the group and provide direction and approvals,” Charters says. “Otherwise, a single project can literally take as much time as two.”

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ONTARIO HOME BUILDER RENOVATION 2017

the husband say, ‘Well, that’s a brandnew snowmobile,’ and she’ll say, ‘What am I going to do with that?’ That’s when they learn the other would rather spend the money someplace else.”

The dynamic is complex and Charters says a renovator must learn to read the couple. “There is usually one person who is driven by the space and their connection to it, and another who is gripping the bag of money in fear of letting go,” he says. “Compromise between those parties is what eventually creates the successful project—but it is typical that I know who the decision-maker is within the first few minutes of a consultation.”

Which is why it’s important to figure out quickly if the couple is fighting over the budget, or if they’re simply doing what Northey calls ‘right-fighting.’ It’s a renovator’s job to build a home they both like, so he makes a point of stepping back and trying to draw out thoughts from the lesstalkative half of every couple.

“It’s important to go back to the first conversation, which is, ‘Why do you want to do this in the first place?’ And get them nailing down whether it’s a retirement home so they can age in place, or if the kids are of an age where they need more space, or if they’re looking at being empty-nesters,” he says.

“Ask, ‘Why are you doing this today?

And why would you want it this way five years from now?’” OHB ohba.ca

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Builders and designers are addressing the changing nature of the modern meal

BY T R AC Y H A N E S

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ONTARIO HOME BUILDER RENOVATION 2017

ohba.ca

W

As the popularilty of islands grows, so does their size, including this AyA Kitchens design, which provides seating for 12. ohba.ca

ith living spaces getting smaller and consumer habits shifting, the dining room is becoming the chameleon of new home design, says Ramsin Khachi of Toronto’s Khachi Design Group. With homeowners embracing open-concept layouts and large primary living spaces, the dining room’s role is changing to adapt to lifestyle trends such as inhouse entertaining, multiple cooks and more casual living.

Does that mean the room once dedicated to holiday entertaining or formal Sunday dinners has become a relic of the past as square footage shrinks, lifestyles get more casual and homebuyers embrace open-concept floor plans? Yes and no, suggests Khachi.

“It really depends on the calibre of house being built,” he says. “I find more and more people are doing without a formal dining room and want a more open-concept, family-style living space.

With the value of living space rising, the formal dining room is on the top of the chop list. Having said that, a certain calibre of homes still require its presence.”

Yasmin Goodwin of My Design Studio, also in Toronto, agrees that it often comes down to the size of the home. “I find in larger homes, it’s still very significant.”

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Formal dining is going the way of the dinosaur on many fronts, but it still has a presence in many custom high-end homes, including this layout from My Design Studio.

Dining out is not just for special occasions Canadians love to dine out.

According to Restaurants Canada, we spend about $72 billion a year on restaurant meals. That figure has been increasing for decades. Since World War II, when dining out spending was $2 billion a year, spending has risen at more than double the rate of inflation.

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Cultural background is also an influence, Goodwin notes. “I’ve done a quite a few homes in the Finch and Yonge area, where a lot of homeowners are Asian, Korean and Persian. They all want the dining room. It doesn’t matter what’s trending; it’s what people’s cultural expectations are. In an area where there are largely Eastern European or Persian homeowners, if you build a house that doesn’t have formal dining room or have dedicated dining space, you could be affecting resale value.”

As for the dining rooms that remain in play, the area is less cluttered than

in the past and may feature a mix of eclectic pieces, Goodwin adds. “There is less furniture and you don’t have the whole matchy-matchy thing—it’s more eclectic, with tables and chairs that may or may not match.”

Friedemann Weinhardt, founder of residential interior design firm Design First in Ottawa, says while many people are forsaking formal dining rooms in favour of more casual eating spaces, they still want a place to put a dining table. The dining room still exists, he says, but there are no longer any walls around it.

With detached homes getting smaller, ohba.ca

Open-concept kitchens are in demand, but Design First’s Friedemann Weinhardt stresses the importance of providing ample storage.

Even in high-end developments like Rinaldi Homes’ Rosewood Estates, owners shun the idea of separate dining rooms.

and townhomes and condominiums becoming popular due to affordability, the integration of a dining area with the kitchen and family room into one large living space continues to trend.

“We build a lot of bungalows and the main goal of buyers is an open-concept plan,” says Danielle Rinaldi of Niagara Region builder Rinaldi Homes. “That’s the priority for most purchasers.”

Rinaldi says in Merritt Meadows, a project in Thorold geared mainly to young couples and young families, “none of the homes have formal dining rooms.” Even in Rinaldi’s higher-end Rosewood Estates in Fonthill, which caters to downsizing baby boomers, the majority don’t want a separate dining room.

The dining room, in many cases, has been rendered obsolete by builders themselves, suggests Weinhardt, who notes that several tract-built homes include dining room footprints too ohba.ca

small to allow the room to function properly. “A lot of them aren’t big enough to be able to pull out chairs on both sides,” Weinhardt notes.

While he notes that big buffets and sideboards of the past have also gone the way of the dinosaur, it’s important to have enough space to provide storage for items such as extra dishes. “We do a lot of built-ins,” Weinhardt says.

Another casualty has been the breakfast nook, which, in most houses, was too small to be practical, says Weinhardt.

“It has been replaced by an island where people can sit at stools,” notes Goodwin.

And goodness knows, everybody wants an island. Rinaldi says this integral part of the modern dining lifestyle reflects the trend to more casual living—people want guests to be able to gather around the island for parties.

“When we’re doing renovations,

Most menu planning is last minute In 2015, Quebec celebrity chef Ricardo Larrivée commissioned a survey to delve into how Canadians eat. That fall, Leger Marketing surveyed approximately 3,000 adults from across the country.

Most Canadians don’t plan their menus in advance, the study revealed.

The majority determine what to make for dinner an hour before they start cooking. They spend an average of 38 minutes cooking on weekdays and 45 minutes on weekends. Then they spend just 28 minutes at the dinner table chowing down.

The survey found Ontario residents’ lives are particularly hectic. They eat later in the day, are less likely to eat with their families and often work through lunch. They feel under pressure to be efficient, their lives are rushed, and like most other Canadians, they don’t decide until late afternoon what to have for dinner. Then, they make a last-minute trip to the grocery store to pick up meal ingredients.

Ontarians believe they are experts in the kitchen. That claim may or may not be true, but that’s their perception, according to the survey. In the Toronto area, where culinary tastes are cosmopolitan, shoppers tend to go to specialty food stores more often to buy fresher, higher quality food and spices.

As for other Canadian food habits, the survey found that Canadians eat together as a family an average five days a week.

They love breakfast and most watch TV while they eat dinner.

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Eye-catching lighting and integrating a dining table into the island itself (below) are both trending for AyA Kitchens.

Millennials: Feeding the Foodie Generation Millennials are the foodie generation.

Born between 1976 and 1995, they are passionate about food, have sophisticated tastes and make health a priority.

A 2015 Neilsen Global Health & Wellness study found that while 29% of millennials are willing to pay more for healthy products, time and portability are important. However, almost 40% of Canadian millennials say they don’t have time for lunch, according to a Mintel study.

The group uses restaurants more than other age bracket, with the average millennial eating out of home a whopping 235 times a year, according to a 2015 Canadian Chain Restaurant Industry Review. It’s not surprising, then, that Mintel found that millennials tend to agree that restaurants offer better quality food than they’d bring from home.

The post-millennials (Gen W, aged 14 to 20, and Gen Z, aged 21 to 25) are emerging as the next force in the food industry. They are even more knowledgeable than the foodie millennial, with 78% of Canadian youth reading food labels, according to the Human Project, a global study by the Zeno Group.

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people say, ‘Give me a big island,’” relates Patrick Ryan of AyA Kitchens, which has showrooms throughout the province. “They congregate around the island, even if people are cooking.

And if they have the space, they want an island large enough to seat at least four people.” In big homes, the island might be large enough to accommodate a dozen.

Ryan says islands have gone from small and utilitarian to centrepieces, resembling “something you might find at an antique store” or decked out with Canadian-made, FSC-certified veneers that resemble exotic woods such as wenge or zebrawood.

AyA also gets requests to integrate a dining table with the island that can be used for both casual and formal dining

occasions. And many are opting to put a “show-stopping” chandelier or pendant lights over the island, just as they may have done over the dining room table in the past, Ryan explains.

Weinhardt says in many homes, however, the island is not a replacement for the dining table. “People still like a table. The island is more for casual eating, serving cocktails or tapas, or for on-the-go meals like breakfast, where you are not going to sit down at a table for six.”

Not so much for condos, where there is often not room for a designated dining area. That’s when space has to be even more versatile and functional.

“You can have a table that can pull out from the island and slide back in when you’re not using it,” advises Goodwin. ohba.ca

Simplifying dining areas can open up space for other activities, as this thoughtful Ramsin Khachi layout demonstrates..

Weinhardt says that banquette seating is making a comeback and is a great solution for small spaces. “It’s very popular, it saves space and requires two less feet (than dining chairs all around a table). It’s a cool feature.”

Redistributing Space Since the dining area has evolved to be a more versatile space, builders should take note in their designs, says Goodwin.

“You might work there or kids might do homework at the table. For the average person, it’s used in multiple ways rather than just being a showpiece.”

Evolution means there’s also the continuing opportunity to reallocate space previously devoted to separate dining rooms for such things as mainfloor laundry rooms or home offices, giving those regularly used parts of a home greater functionality and room to breathe.

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Khachi Design Group’s open- concept dining area maximizes space while keeping a formal dining option.

And with smaller homes continuing to be the norm in large cities, expect further innovation from manufacturers to meet the needs of homeowners.

“I think you’ll see more retractable or subtle partition designs and ideas, spaces that transform in use, creative hardware that enables that transformation and more creative furniture designs that will also facilitate it,” Khachi predicts.

But don’t expect that open-concept design to go anywhere anytime soon, says Weinhardt. “I don’t see any reason not to have that going forward. It makes a space feel larger.”

Khachi says the transition of the dining room is also about embracing a less-is-more philosophy. “We are accumulating fewer things and focusing on those few things that make our lives better,” he says. “Having a dining room that is pretty and seldom used conflicts

with that concept. We want beautiful spaces we ourselves use often—not just when guests arrive.”

Goodwin says where dining areas are part of an open concept, there should be some indication that “this is the space where we break bread together.” This can be achieved in several ways, she says, including a statement light fixture, a ceiling treatment (such as beams or a waffled ceiling) or an area rug. That can be a little more challenging in a smaller space, though, as it’s hard to determine “where to start and end the detailing,” she notes.

Even with the popularity of dining out and compact condo living, Weinhardt says a space for dining remains important.

“People love to cook. Everyone’s a foodie,” Weinhardt notes. “The dining room still exists. It’s just no longer defined by walls.” OHB ohba.ca

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Government policy changes and OHBA advocacy are helping to slowly counter renovators’ most pressing concerns

BY S T E P H E N H A M I LTO N

O

n the face of it, Ontario’s renovation industry is booming. Low interest rates make it easier for homeowners to borrow for larger projects.

High real estate transaction costs from land transfer taxes, realtor fees and moving expenses make it more attractive for people to stay put and invest in their home. This combination adds fuel to the residential renovation industry, which represents $28.5 billion in annual economic activity in Ontario, making renovation a larger industry compared to new home construction. Evidence of home renovation’s trendiness can be seen on the small screen with a growing number of reality TV shows made and produced in Ontario and exported around the world.

Yet, despite the fame of TV renovators and the sheer size of the industry, there remains a sense that sometimes governments don’t show the reno industry the same respect as their counterparts in the new home sector.

The average home renovator is frequently the firm’s HR manager, accountant, sales department, after-market sales, designer and skilled trades person—sometimes all on the same day. And depending on the marital status of the

ohba.ca

couple they are working with, he or she may also be a parttime relationship counsellor. Having to juggle all these roles is hard—certainly harder than it looks on a reality TV show!

Let’s not forget that in home renovation, the competition is the guy working under the table for cash and not paying WSIB or income taxes or applying for building permits. In this mixed environment of illegal and legitimate business, adding new costs, regulations and red tape means that guy doing a cash deal may get more of the business.

This is why the renovators I talk to often shake their heads when the subject turns to apprenticeship regulations, the Ontario College of Trades or WSIB. There is a perception that government and other groups don’t quite understand their business. While new taxes, fees and administrative costs may be less cumbersome to deal with for large general contractors, home renovators often struggle with understanding the constant stream of new regulations that keep piling up. While both home renovators and general contractors may be driving the same model truck and are both considered construction managers, each is operating in completely different business environments.

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While the perception of a lack of respect may not change overnight, there are some positive signals that government is starting to pay attention to renovators and making policy changes that benefit professional renovators.

Here’s a look at four key issues impacting the industry that suggest the tide may be turning:

1. ONTARIO COLLEGE OF TRADES (OCOT) The Ontario College of Trades has been a target of criticism since it started operating in 2012. Opinions on OCOT split the construction industry. Some saw it as a body that would promote the trades and give professional recognition to tradespeople.

Others viewed OCOT as a unionization tool for vested interests to gain jurisdiction against rival unions and the non-unionized industry.

One of the college’s main responsibilities is ensuring that only licensed journeypersons and apprentices are the ones doing the work in the compulsory trades such as electricians and plumbers. Unfortunately, determining the work tasks a compulsory trade can be assigned is not 60

ONTARIO HOME BUILDER RENOVATION 2017

straightforward and isn’t conducive to rigid definitions. But rigid definitions are precisely what OCOT inherited when it was created. The Scope of Practice (SoP) regulation, which defined work tasks that OCOT became responsible for, referred to definitions for trades that date back to the 1950s and 1960s— definitions originally written for training purposes; not enforcement.

The outdated Scope of Practice only became problematic from a public policy perspective once OCOT was established.

All of a sudden, the SoP’s took on additional meaning, as they provided the legal definition of what a trade is.

This definition informed both the new enforcement division and adjudicative process for defining potentially new compulsory trades.

For renovators, this was a problem

because performing renovations happens to fall within the Scope of Practice for a general carpenter. While a general carpenter is currently a voluntary trade and doesn’t require a licence under OCOT, there was now a process for the general carpentry trade to become a compulsory trade. If that had occurred there was the potential that only workers with a General Carpentry Certificate of Qualification could perform renovation work. While some renovator members have that certificate, the majority do not.

If general carpentry had moved ahead and successfully became a compulsory trade, this would have upended the entire renovation industry. Regardless of the transition rules that OCOT applied, home renovation as a compulsory general carpenter trade would have been highly disruptive, since changing a doorknob or window fixture would have required a general carpenter licence.

In order to become a general carpenter in Ontario, a worker must apprentice for 7,200 hours and attend in-class schooling at a college or union training centre. Equally tricky is finding an employer that can hire an apprentice, with the current ratio of three journeypersons required to hire a single apprentice. The renovation sector’s concern is one of a number of concerns identified by OHBA and other stakeholders that successfully convinced the government that they needed to take a second look at how OCOT does its job.

The province appointed Tony Dean to review the College of Trades and he embarked on a province-wide consultation tour visiting home builders’ associations across Ontario. Ultimately, Dean provided government and OCOT with 29 major recommendations that would change the way OCOT operates moving forward. After accepting ohba.ca

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In January, home renovators and new home builders saw an average decrease of 14% in WSIB premium rates, a savings of up to $1,123 per worker annually.

Dean’s recommendations, the Ontario government introduced three major reforms through legislation that passed at the end of 2016 that OHBA believes are positive for renovators.

First, the government now requires OCOT to develop a policy for the review of Scope of Practice (such as general carpenter) to see if the current Scope of Practice still make sense. This review recognizes that the SoP are often outdated and need a second look. For renovators, this should provide some assurance that they aren’t grouped alongside large unionized carpentry employers that have different demands.

Second, the trade classification process now allows for elements of a Scope of Practice, including home renovation to be omitted as compulsory, even if other components of the trade become 62

ONTARIO HOME BUILDER RENOVATION 2017

compulsory. This change should address the concern that if carpentry does move forward as a compulsory trade, installing a doorknob or window fixture doesn’t require a worker to go through a full apprenticeship.

And third, OCOT must now develop a compliance and enforcement policy based around the risk of harm to workers and the public. This is a change from the enforcement structure of OCOT which currently allows enforcement to issue fines and penalties to non-OCOT member workers and employers performing compulsory work. Unlike a general contractor building a hospital, renovators perform many overlapping tasks, such as a bathroom renovation, where they could be performing five or six different trades as part of their work. The previous strict enforcement on the Scope of Practice did

not allow for the crossover of work when a tradesperson is performing certain tasks.

A risk-of-harm test is an improvement that should direct OCOT enforcement to high-risk areas where there is serious risk to workers and the public.

2. WORKPLACE SAFETY AND INSURANCE BOARD (WSIB) When Bill 119 Mandatory Coverage for Independent Operators came into effect, many contractors were furious about having to pay additional insurance when they already had private insurance covering them on and off the job. Even still, the government provided exemptions for contractors hired directly by the homeowner, recognizing the reality of the sector.

More recently, there are new reasons to be positive about the direction of the WSIB. In January 2017, home renovators and new home builders saw an average decrease of 14% in WSIB premium rates, a savings of up to $1,123 per worker annually.

While this is a meaningful decrease, there is still the perceived unfairness as a result of a dual-rate structure for residential compared with industrial, commercial and institutional (ICI) construction. Under the present system, a renovator installing a new kitchen for a homeowner pays 87% more than a contractor doing identical work in an office building or a hotel. This is based on an outdated system of rate classes that separates premium rates on arbitrary differences in industry instead of the risk associated with the work. The problem is, these rates have been essentially frozen for the past decade, as the WSIB tries to address its unfunded liability.

During this same period, renovators and builders made significant improvements in health and safety and as a result now have equal probability of making a WSIB claim compared to ICI contractors.

The good news is that WSIB is slowly moving away from this system and will instead merge most home renovators and home builders with other contractors doing similar work in ICI construction.

Called “Rate Framework Modernization,” this change will collapse the current 155 rate groups into 22 different rate classes. For the majority of employers in homebuilding rate group 764 (which ohba.ca

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includes renovators), the change, once implemented, will create an average savings of more than $2,600 per worker.

OHBA is urging WSIB to implement this as soon as possible.

3. HOME ENERGY RATING and DISCLOSURE (HER&D) Anyone who has purchased a new car knows the fuel economy of the vehicle when they begin shopping. This information is valuable for consumers who are eco-conscious or just want to spend less time paying at the pump. Unfortunately, homebuyers in Ontario do not enjoy the same type of transparency and information when they are purchasing a home.

But with the increase of energy costs, understanding a home’s energy performance is now more important than ever.

To address concerns about carbon emissions in homes, the government is moving ahead with a mandatory Home Energy Rating and Disclosure program (HER&D), which will mandate that homes be tested for energy performance before being listed for sale. According to 64

ONTARIO HOME BUILDER RENOVATION 2017

the province’s Climate Change Action Plan, this will launch in 2019. OHBA supports the program because this will increase consumer disclosure and transparency.

We believe that HER&D could provide the spark for market transformation, as buyers will make informed decisions to purchase more energy-efficient homes.

For renovators, this means sellers could be more likely to invest in energyefficient upgrades prior to listing their home on the market.

4. UNDERGROUND ECONOMY Behind almost all conversations about government policy affecting renovation are concerns about the underground economy. According to Statistics Canada and the Ontario Ministry of Finance, $16.7 billion in annual economic activity can be attributed to the underground economy in Ontario, of which $4.8 billion is in the residential construction and renovation sector alone.

The government has traditionally tried to tackle the underground economy through additional resources for

Ministry of Labour enforcement and WSIB non-compliance. However, OHBA members assert that the underground economy is fundamentally caused by consumer demand. If the government wants to get serious about underground activity in residential renovations, more needs to be done to deter consumers from illegal renovations, as well as to privide them with incentives to hire qualified professional renovators.

In 2016, the Parliamentary Secretary to the Ministry of Finance, MPP Laura Albanese, led an examination into the problem of the underground economy in Ontario in the residential construction sector. Through consultations with OHBA, our renovator members and the broader construction community, MPP Albanese released a report providing 10 recommendations to the government.

Among these are topics OHBA has been advocating for, such as the introduction of incentives for homeowners to hire qualified and reputable contractors for home improvements.

While we have yet to see action on a new made-in-Ontario renovation rebate for consumers, we are encouraged by the report’s recommendations. In recent meetings with MPPs and in our advocacy work, OHBA is now connecting our idea for a home renovation tax rebate with both the government’s emphasis on lowering carbon emissions and the HER&D program.

There are 4.8 million existing homes in Ontario, and many of these were built in a time when there was no insulation and homes were heated and cooled with older inefficient boilers and heaters.

If the government is serious about reaching the Climate Change Action Plan targets, there is a strong case to be made for the government providing funds to homeowners that choose to hire professional renovators to work on projects that make the home more efficient.

This highlights a few key issues currently affecting the work of renovators. As we continue to retrofit, upgrade and modernize Ontario’s communities, OHBA will continue to advocate for effective and workable policies that support the work of our professional renovator members across Ontario. OHB ohba.ca

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B2B-OHBA-04052017.indd 1

4/5/2017 9:36:03 AM

Which vehicle is the best fit for your job in 2017?

BY T E D M c I N T Y R E

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ohba.ca

P

ickups used to be the epitome of bluecollar—simple, rugged and reliable. But as technology has continued to find its way into today’s trucks of the trade, they’ve morphed into multi-purpose vehicles.

Indeed, with an average starting price around $45,000, many can be considered luxury vehicles.

But that hefty fee isn’t stemming the momentum in Canada, where, according to the Global Automakers of Canada, pickup truck sales leapt 8% over 2015, with a little less than 400,000 total sales in 2016.

Carrying most of the weight, once again, was the Ford F-Series. Canada’s best-selling vehicle and the country’s best-selling truck the past 51 years, the F-Series saw a whopping 145,409 new units sold in 2016—more than 55,000 clear of its nearest competitor, Ram. “At the end of the day, you have to understand everything we do is because we’ve been told by our customers that that’s what we should do,” says Bill Rowe, Ford Canada’s Director of Product Marketing.

“We do a lot of research with our customers, both at the retail and the commercial level, to find out what they want and need, and have even gone on site with the customer to find out how they use their vehicles.

We have taken all that knowledge to put the content into the vehicle that makes sense for that customer.”

How have they accommodated today’s construction trade workers and contractors?

Technological connectivity is front and centre, says Rowe. “When you look at some of our consumers, especially smaller business owners, they actually use their vehicles today as mobile offices. It’s not just a case of loading a lot of stuff and taking it to a worksite anymore; today they can create invoices, talk on their phones and make deals as they’re travelling by using Ford Sync—things like that. It makes them much more productive in their day-to-day lives.”

From a functionality standpoint, the innovation has been lighter materials, says Rowe, “going to military-grade aluminum on both the Super Duty and F150, which has allowed us to improve fuel economy and increase gross vehicle weight rating so that you can put more weight in the back of the vehicle. And we reinvested a lot of that reduced weight into the components that require it, like

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the chassis—areas that make the vehicle more durable, stronger, better ride.”

Nick Mancini, a carpenter and partner with Hamilton’s Heartwood Renovations and HamiltonHalton HBA’s 2015 Renovator of the Year, appreciates the mix of high-tech and efficiency. “My past truck was a 2011 Ford F250 Super Duty and my partner had a 2011 Dodge Ram 1500,” Mancini notes. “We’ve upgraded to a pair of 2017 Ford F250 Super Duty Platinums. The 2017 model was totally redesigned inside and out, with lots of new technology and features. And it can tow a larger capacity as well, which is big for us since we have a 14-ton dump trailer and a 16 ft. enclosed trailer.”

Pickups have come a long way in recent years, notes Rowe, whose company launches the 2018 F150 this coming fall. “If you look at most trucks, just 15 years ago they were very utilitarian—you sat three people across a bench seat and had an eight-foot box at the back that you threw a lot of stuff in. Today they’re much more comfortable and technologically advanced.

They’re more like a luxury vehicle than the old trucks used to be.”

But some miss the practical days of yesteryear.

“Those old (Chevy) Astros and AWD vehicles— most of us trades guys miss them,” says West Coast Renovations owner Dennis Schilthuis, “You buy a big, fancy truck and you still have to buy a trailer package after the fact. And if you want floor mats and crank-down windows, they’re extras. Yesterday I worked in three different types of weather— why do we put carpet in North American trucks?

It might be nice for sound dampening, but it’s impractical from a utilitarian standpoint.

“I lived in New Zealand for a little while and you could buy a Toyota basic cab and frame, and each manufacturing sector had its own customization, whether you needed it for carpentry, for farming— if you were a sheep herder there was a particular box you could put on the back for your dogs,” Schilthuis explains. “But here, the way things work, you can’t buy a pickup without the box it comes with. Then you have to take it off and find a home for it, then go out and find a company to customize the type of box you need for your job.

“Today’s vehicles are essentially computers with ONTARIO HOME BUILDER RENOVATION 2017

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engines attached,” Schilthuis says. “But it would be nice if I could use my truck for charging batteries or as a temporary air compressor.”

The Goderich resident was briefly in the market for a new vehicle, but says he can’t justify the price.

“As the business shifts and priorities change, I have been looking for a solid van or replacement truck for my 2008 Ford F-250 Power Stroke—something classy but versatile as well, with second-row seating. I have four children, and sometimes I’ve got to transport a small crew of guys to work, as most trades have a journeyman, apprentice, co-op student, etc. But the replacement cost for what I have would be about $80,000, and a trade-in for my current truck might get me $20,000 tops. I figure it will be a $900/month lease, which I can’t afford, and would have to pass on the customer. So I’m going to keep my old truck—it only has 160,000 kms on it.”

For those who are in the market and looking to customize their ideal work truck, most manufacturers have a website function that allows you to build and price your vehicle to your personal specifications. But for an overview of what’s out there in 2017, allow us to present the following 14 options: 68

ONTARIO HOME BUILDER RENOVATION 2017

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Ford F450 Super Duty

Ford F-150 King Ranch

Ford Transit

The dominance continues for Canada’s top-selling vehicle. The 2017 edition of the Super Duty features its strongest frame ever (with eight times more torsional rigidity than the previous frame), while overall weight is down 350 pounds, thanks to the use of more advanced materials. The optional 6.7-litre Power Stroke V8 diesel engine (with six-speed transmission), meanwhile, now churns out 330 hp and 750 lb.-ft. of torque! Up to seven available cameras and a host of driver-assist features make the ride even easier, while the SOS Post Crash Alert System comes standard.

The rugged SuperCrew King Ranch seats five to six and comes standard with a 5.0L V8 engine with flex fuel capability. Among the many included features are a 10-speaker Sony audio system with Sirius radio, heated rear seats, a voice-activated navigation system, rearview camera with Dynamic Hitch Assist, Pro Trailer Backup Assist and leather bucket seats. Ford’s Sync Connect allows you to start, lock, unlock and locate your vehicle from virtually anywhere using your smartphone, while there’s also the new colour touchscreen Sync 3, displaying phone, audio and available navigation functions.

MSRP: FROM $65,599

MSRP: FROM $66,099

Offering three roof heights and a variety of wheelbases and body lengths, the flexible Transit comes standard with a 3.7L V6 with a 6-speed SelectShift transmission, which delivers a responsive performance with 275 horsepower and 260 lb.-ft. of torque. Engine options include the turbocharged 3.5L EcoBoost, which generates 310 horsepower and has a maximum torque of 400 lb.-ft. Features include a modern interior and a maximum towing capability of 7,500 lbs. Low-roof models come with passenger-side hinged cargo doors or an optional passengerside sliding door. The medium- and high-roof models have a standard passenger-side sliding cargo door.

MSRP: FROM $36,349.00

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The perfect fit for your business.

The 2017 Mercedes-Benz Metris Cargo Van. Enjoy lease rates starting from 0.99% for 60 months.** Nothing stops the Metris from driving your business forward.

With an incredibly fuel-efficient powertrain, ample cargo space, and hefty towing capability, you’ll be hauling more of what you need. Learn more at Burlington.MBVans.ca.

Š 2017 Mercedes-Benz Canada Inc. 2017 Metris Cargo Van shown, MSRP $33,900. *Total purchase price of $36,590. Taxes are extra. Shelving upfit and ladder rack shown are aftermarket solutions, available through Mercedes-Benz MasterUpfitter. Lease offers based on the 2017 Metris Cargo Van available only through Mercedes-Benz Financial Services (MBFS) on approved credit for a limited time. **Based on a total price of $33,900. Total obligation is $35,571 which includes an end of lease residual value of $13,221. 1Finance and lease rates of 0.99% for 60 months applies to 2017 Metris models. Only applicable on lease and finance offers. 2Offer valid only on approved credit from Mercedes-Benz Financial Services. Offers are non-transferable, non-refundable and have no cash value. Offers may change without notice and cannot be combined with any other offers. Certain limitations apply. Visit Mercedes-Benz Burlington for details or call at 1-877.557.3007. Offers end June 30, 2017.

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GOING FAST Essentially Canada’s best-selling truck for nearly a half-century, Ford’s F-Series was once again the 600-pound gorilla in pickup truck sales last year, outselling its nearest competitor, the Dodge Ram, by more than 55,000 units. (It was also popular among nonowners, with varying F-Series models claiming seven of the top 10 list for Canada’s most stolen trucks in 2016, according to the Insurance Bureau of Canada.)

Here’s a look at the nation’s top 10 bestselling pickups for 2016:

5

1

Ford F-Series 2016..............145,409 2015..............118,837 Change.............22.4%

2

Ram P/U 2016............... 89,048 2015................91,195 Change............. -2.4%

3

GMC Sierra

4

5

6

Honda Ridgeline LX

Honda CR-V LX

The North American Truck of the Year, the Ridgeline appeal is in its practicality. It’s a right-sized truck with strong fuel economy that is comfortable to drive for daily commutes while still being able to handle all the utility that construction trades require. Its 3.5L, 24-valve, direct-injection SOHC iVTEC V6 engine puts out 280HP and offers 5,000 lbs of towing capacity.

This AWD provides great traction management among its many safety features, while standard interior offerings range from Apple Car Play/Android Auto to underseat storage, a proximity key entry system with push-button start and a multi-angle rearview camera.

A 2017 Residual Value Award winner at the Canadian International Auto Show, honouring vehicles forecasted to retain the highest percentage of MSRP after a fouryear period, the five-passenger Canadian-built CR-V has been completely redesigned. The exterior is more rugged and athletic, with its first-ever 1.5L turbocharged engine making it both responsive and fuel-efficient. A spacious interior features a more premium feel with soft leather, heated seats, a panoramic sunroof and two levels of adjustable cargo floor heights. A plethora of safety features comes standard, while the LX model offers Honda’s Real Time AWD with Intelligent Control System.

Toyota 2017 Tundra 4x2 Double Cab Long Bed SR5 Plus

MSRP: FROM $38,688.75

MSRP: LX FROM $31,588.75

Featuring 10,400 lbs of towing capacity and 1,770 lbs of payload in an 8.1 ft. cargo bed, the new SR5 Plus offers many of the regular features (including a 5.7 Litre i-FORCE, 8-Cylinder, 32-Valve DOHC engine), but adds upgraded audio (with Advanced Voice Recognition and a 7” display screen), keyless entry, carpet floor mats, a 19” wider wheelbase and, of course, seating for 5 vs. 3). There’s also a bed rail system and tie-down cleats, plus alloy wheels and fog lights.

Safety features include Trailer Brake Controller, Trailer Sway Control, Vehicle Stability Control and Traction Control.

MSRP: FROM $40,880

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“If you look at most trucks, just 15 years ago they were very utilitarian.

Today’s are more comfortable and technologically advanced.

They’re more like a luxury vehicle.”

2016............... 51,091 2015............... 53,727 Change............. -4.9%

4

Chevrolet Silverado 2016............... 44,932 2015............... 46,407 Change............. -3.2%

5

Toyota Tacoma 2016............... 12,618 2015................11,772 Change...............7.2%

6

Toyota Tundra 2016............... 11,364 2015............... 10,829 Change.............. 4.9%

7

Chevrolet Colorado 2016.................6,569 2015.................5,095 Change.............28.9%

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Ontario Home Builders’ Association Membership Directory 2014

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7

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8

GMC Canyon 2016.................6,083 2015.................4,635 Change.............31.2%

9

Nissan Frontier 2016................. 4,127 2015.................3,622 Change.............13.9%

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10

9

Nissan Titan 2016................. 2,715 2015.................3,626 Change............-15.8% (*Although the Honda Ridgeline, North America’s 2017 Truck of the Year, placed 11th overall, it’s important to note that it only launched in late 2015, when it sold 229 units.

Last year it sold 2,622 units in Canada, an increase of 1,045%.)

?

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Mercedes 2017 Metris Cargo Van

Mercedes 2017 Sprinter 2017 Chevrolet Cargo Van Silverado 2500 HD The Sprinter Cargo Van offers Diesel more cargo volume than any

The mid-size Metris offers ample cargo space (5.27 m3), a hefty payload capacity and a towing capacity of 2,250 kg. As a mid-size, its 189 cm height means you can worry less about height-limits in underground parking garages, while the Parktronic with Parking Assist option helps manoeuvre the vehicle into tight spots. This van gives you the room you need to work, when room to work is limited. Available with safety features such as Lane Keeping Assist, Collision Prevention Assist, Crosswind Assist and Blind Spot Assist, it also features a tight turning radius of 11.8 metres.

MSRP: $33,900

other van in its class (9 m3) and a towing capacity of 2,268 kg (based on the Sprinter 2500 4x2 4 cylinder model). Available in a variety of roof heights and cargo lengths, it also provides the ideal foundation to tailor your van to any configuration, thanks to an established network of MercedesBenz MasterUpfitters. Heated and power adjustable side mirrors and Parktronic help manoeuvre your workshop on wheels. Available with safety features such as Collision Prevention Assist, Blind Spot Assist and Crosswind Assist.

MSRP: $42,900

9

The new Duramax 6.6L V8 TurboDiesel engine generates 910 lb.-ft. of torque and class-leading 445 hp.

Chevy’s Trailer Sway Control detects when your trailer is swaying and applies both the truck’s and trailer’s brakes to help bring it back in line. There’s also a new optional accessory trailering camera. It all translates to an enhanced towing experience (maximum 18,100 lbs), with a max payload of 3,534 lbs.

The hood features an all-new air intake system that allows more air to reach the engine for improved power output and cooling.

MSRP: FROM $43,400

10

2017 Chevrolet Silverado 1500 The optional 6.2L EcoTec3 engine puts out 420 hp at 5,600 rpm and 460 lb-ft. at 4,100 rpm, while the available Max Trailering Package offers up to 12,500 lbs. of classleading towing capability. Featuring a muscular front-end design with bold horizontal elements and a sculpted hood, the pickup’s box floor is roll-formed steel with nine cross members through-frame welded for lateral support, making it stronger, lighter and more durable than a traditional stamped steel bed. Integrated Electric Trailer Brake Controller and Rear Vision Camera are available, while StabiliTrak with Trailer Sway Control and Hill Start Assist are among its standard features.

MSRP: FROM $30,110

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LEAST EXPENSIVE TRUCKS TO INSURE IN CANADA From InsuranceHotline. com, here are the 10 pickup trucks with the lowest insurance rates in Canada. (Note that the difference from 1-10 is just $75 annually, according to the website.)

1. Honda Ridgeline 2. Nissan Titan 3. Chevrolet Colorado 4. GMC Canyon 5. Chevrolet Silverado 6. Dodge Ram 7. Ford F-Series 8. GMC Sierra 9. Toyota Tacoma 10. Toyota Tundra

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Nissan 2017 Titan King Cab

NNissan V2500 Cargo Van HD

Marked by its available 6-person seating, wide-opening rear doors, in-cab storage space and available “rear seat delete” option—ideal for commercial use with its flat floor—the Titan boasts a brand new 7-speed transmission on its Endurance 5.6L, 32-valve V8 engine.

The design coupled with Nissan Direct Injection System and Variable Valve Event and Lift, provides the power you want with the efficiency you need. Optimally configured, the Titan promises up to 1,610 lbs of payload and 9,390 lbs of towing capacity. Audiophiles will enjoy the optional 12-speaker Rockford Fosgate audio system, featuring a built-in subwoofer for deep, rich bass.

The NV 2500 HD’s 323 cubic feet of cargo space allows for a 6’2” worker to walk comfortably through the back. The storage system includes 57 reinforced cargo-mounting points to help racks and containment systems attach more securely, while 120V power outlets with up to 400w of electricity are provided in the centre console and by the rear door.

Flat-loading floors comfortably fit two 40” x 48” pallets, while 10-foot piping fits the length of the van.

Ruggedly built, its 4.0L V6 delivers seamless power with optimum fuel efficiency, while the 5.6-L V8 boasts a forged crankshaft and cast-iron cylinder liners.

2017 GMC Sierra 2500 2017 GMC Sierra 1500 look inside the Sierra 1500 HD (SLE Preferred Plus) One light-duty pickup reveals an

MSRP: FROM $35,998

MSRP: FROM $34,998

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This slick 4x4 crew-cab machine seats six and is powered by GMC’s hefty 6.0L V8 Vortec SFI FlexFuel w/ VVT and overdrive and is capable of running on unleaded or up to 85% ethanol. Features include a heavy-duty handling/trailering suspension package, upgraded tires, front Halogen fog lamps, dual-zone climate control, exterior heated power-adjustable trailer mirrors, a remote vehicle starter and a theft-deterrent system, among many others. There’s also a new available accessory trailering camera. Offering up to 23,300 lbs. of towing capacity, the 2500HD also boasts an innovative cargo management solution to help you work smarter.

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elevated standard for premium truck interiors, with available technologies including OnStar 4G LTE with Wi-Fi hotspot, and the MYGMC app, which, when paired with OnStar, allows you to remotestart your vehicle (if equipped) and monitor the health of your vehicle, including fuel level, tire pressure and oil life. Triple door seals, hydraulic body and engine mounts and aerodynamic exterior mirrors all help make the ride quieter.

Upgrades provide best-in-class towing, V8 horsepower and V8 fuel efficiency, while the high-strength roll-formed steel bed is offered in three options for optimal cargo management.

“When you look at some of our consumers, they actually use their vehicles today as mobile offices.

It’s not just a case of loading stuff and taking it to a worksite anymore.”

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Situated within an extensive public park and trail network, and complemented by a marina and visitor attractions, this 13-acre land parcel is primed to become the region's next vibrant waterfront community featuring approximately 1,500 residential units and 82,000 square feet of commercial space.

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Better Building I DE A S FOR B U I L DE R S & R E N OVAT OR S

BEATING THE MORTGAGEES TO THE MONEY Why the lien claimant should claim priority over the mortgage

BY R O B E R T C H O I

Stephen King once shared a quote, in jest, about the life of the writer: “If you wrote something for which someone sent you a cheque, if you cashed the cheque and it didn’t bounce, and if you then paid the light bill with the money, I consider you talented.”

I suppose one can analogize that to the life of the construction trade: “If you did some work for which the owner sent you a cheque, if you cashed the cheque and it didn’t bounce, and if you then paid your subs with the money, I consider you lucky.”

But of course, as so often happens, the trades are not always so lucky. The cheques from the owners can bounce, and when the bounced cheques are not replaced by certified funds, the trade will run off to lien the property. At this juncture, it is very easy for the trade to suffer ohba.ca

from a bout of tunnel vision and vengefully focus on the non-paying owner.

But Shakespeare said it best about the need to take a step back: “Wisely and slow; they stumble that run fast.” When perfecting the lien, the trade will be well advised to consider commencing a lien action not only against the owner but also against the mortgagees, on the basis that the lien has a statutory priority over the mortgages. Asserting this priority can make the difference between cashing in or getting burned, especially when there are multiple mortgages draining what little remains of the equity in the property.

Admittedly, it may seem like an ominous, Herculean task to take on the powerful mortgagees who, in most instances, will have registered their security first, often represented by Bay

Street’s priciest (and thus necessarily the best) litigators. But take some comfort in this: All that money cannot defeat the law. The Construction Lien Act provides that, subject to the specified exceptions set out at s. 78 of the Construction Lien Act, liens have priority over all mortgages. You read that right: Subject to certain exceptions, liens actually have priority over all mortgages!

Now, that is not to say that the legislation provides a carte blanche for the lien claimants to be paid for all of their money first, because the law recognizes that mortgagees who have lent money to the owner to purchase the land and to make improvements on it should also be protected. Hence, the legislation strikes some balance between the rights of the lien claimants and the mortgagees, in accordance with the priority rules set out at s. 78 of the Construction Lien Act. A comprehensive review of the priority scheme is beyond the scope of the article, but some simple rules of thumb for common situations are described below.

If there is a building mortgage by which the mortgagee has lent money to finance an improvement to the property, then the lien will have priority over the building mortgage to the extent that there’s a deficiency in the holdback funds.

If there is any kind of a mortgage on title, and the mortgagee has made any loan advances in the face of a registered lien, then the lien will have priority over the loan advances so made.

The first rule is premised on the policy of fairness. The building mortgagees reap the benefit of the lien claimants’ work. As a result of the lien claimants’ improvement, the mortgagees’ interest will be secured against an enhanced property. Hence, the law provides the liens with a special priority over the building mortgages, to the extent that there is a deficiency in the holdback funds.

The second rule is premised on the idea of “lenders beware.” If the lender can check to see that a lien claimant ONTARIO HOME BUILDER RENOVATION 2017

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has registered a lien but advances a loan installment anyway, then that lender will be doing so at its peril. Practically, what happens in this situation is that the lender will refuse to make further advances to the owner until the owner has either paid off the trade or posted sufficient security in court.

As a lien claimant, it is thus always prudent to search the title of the property that will be liened. Does the property have mortgages? If so, then alarm bells should immediately go off and the lien claimant should consider claiming priority against the mortgages, in accordance with the aforementioned legislative scheme at s. 78 of the Construction Lien Act. Remember this: ’Tis better to have claimed and lost, than never to have claimed at all (and you won’t lose, so long as you claim in accordance with the legislative scheme).

—Robert Choi is a litigation lawyer at Robins Appleby LLP

the home, showing them how to measure and assess potential defects. They give practical advice based on their years of expertise of working with homeowners and builders at conciliation inspections.

Warranty Services Representative Ken Murray, for example, shows builders how to get homeowners involved by holding down floor blocks when assessing whether a floor is uneven in order to help make sure the string is pulled tight.

The goal is for builders to learn through actual demonstration about the CPGs and how they are used by Tarion when determining whether something is covered by the statutory warranty.

Once the demonstration is complete, the group has a chance to ask questions or voice any concerns they may have regarding the warranty.

Partnering with the Industry Since launching the CPG tutorial last fall, Tarion, OHBA and its locals from across the province have been working together to bring local builders together under one roof to deliver the tutorial.

“The demand for the tutorial was overwhelming,” says Siloni Waraich, Tarion’s V.P. of Stakeholder Engagement.

“Scheduling individual sessions was problematic because of the high demand.

Then we realized this was the perfect opportunity to fulfill our commitment to OHBA to work together on training opportunities for their members. OHBA members certainly came through.”

Sudbury & District Home Builders’ Association was the first to jump at the chance to host a multi-builder tutorial at Belmar Homes and graciously

BUSINESS

TARION, INDUSTRY HELP BRING CONSTRUCTION PERFORMANCE GUIDELINES TO LIFE Since Tarion’s Construction Performance Guidelines (CPG) were first launched in 2003, they have become an invaluable resource for Tarion and builders alike.

They provide measurable performance standards that help homeowners and builders resolve issues involving workmanship or defects in materials in new home construction.

Recently, Tarion decided to bring the almost 300-page document to life through a live CPG tutorial. Each tutorial is hosted at a model home and led by staff from Stakeholder Relations and Warranty Services.

The tutorials are hands-on. One of Tarion’s seasoned Warranty Service Representatives pulls out their Tarion toolkit—the types of tools they use when making warranty decisions day in and day out—and walks participants through ohba.ca

Tarion’s Ken Murray demonstrates how he assesses if a floor is uneven.

London HBA partnered with Wastell homes to host colleagues in the London area. Pictured are Sue Wastell and Tarion’s Bob Thoburn.

The Tarion Toolkit

Here are the basics that form every Warranty Service Representative’s tool kit. These are the essential tools used day in and day out to help Tarion determine whether a reported defect is warranted. This list is intended to complement the articles found in Tarion’s Construction Performance Guidelines (CPG) and our interactive CPG Tutorial. Keep in mind that every home and every inspection is different; so sometimes, circumstances call for specialized equipment above and beyond the tools listed here.

Measuring Tools 25’/8m tape measure 100’/30m steel tape Allen key set (metric) 4’ level Laser level Torpedo level 6” slide rule Feeler gauge

Reference Tools String line Plumb bob

Personal Protection

Brick string blocks Floor string blocks Spacer blocks

Investigative Tools Binoculars (10X50WA) Mini Maglite GFI receptacle tester Hygrometer Inspection mirror Infrared thermo gun 24 LED flashlight Garden nozzle

Filter masks Cloth gloves Rubber gloves Safety glasses Shoe covers

Miscellaneous Tools Screwdriver set Canvas bag Scratch awl

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opened its doors to members and nonmembers alike. The success of that first tutorial paved the way for it to be rolled out to other associations.

Asked about their experience, Louie Zagordo, president of the Sudbury & District HBA, said the tutorials have real value. “We are now better prepared to educate our customers about common concerns like concrete floor problems and wall bowing, for example,” he says. “Having multiple companies all together was a great opportunity to share common experiences and get answers to questions we all come across when helping our homeowners.”

Some builders have asked their trades to attend the tutorial along with them.

Having a cross-section of representatives from multiple builders and their trades leads to open discussion that paves the way for a better understanding of the issues directly affecting us all.

Durham Region HBA President Ken Russell of Coughlan homes, who recently hosted a tutorial, said, “Being able to have everyone in the same room, receiving the same advice, helps ensure we’re all on the same page when it comes to addressing our customers’ warranty concerns.”

If you’re interested in hosting a CPG tutorial, email StakeholderRelations@ tarion.com.

R E N OVAT I O N

HOUZZ SURVEY NOTES MILLENNIALS AS ACTIVE RENOVATORS AND DECORATORS Millennial homeowners in Canada are active home upgraders, according to the Houzz & Home’s latest survey.

The 2016 report, which included 23,800 respondents across the nation, revealed that more than half of Canadian millennial homeowners on Houzz (ages 25-34) renovated their home the previous year (56% versus 61% for those 35-54 and 62% for those 55 and older). In terms of decorating, millennials are even more active than 80

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other generations (76% versus 67% for those aged 35-54, and 60% for those 55 and older). The top trigger for renovations among these groups was the desire to customize a recently acquired home (52% versus 24% for those 35-54, and 19% for those 55 and older).

“While the generation of homeowners between the ages of 24 and 34 still comprise a small share of the homeownership population, we’re finding that they are quite active when it comes to home upgrades, and are eager to make their homes their own,” says Nino Sitchinava, principal economist at Houzz.

Half of renovating Canadian homeowners opt to take on a renovation instead of buying an already “perfect” home due to their desire to stay in their current home (49%), the survey suggests.

Although financial considerations such as a renovation providing a better return on investment (32%) lagged somewhat behind as the primary motivator for the average Canuck, for millennials they are more top of mind, with 43% citing return on investment as the top reason for renovating versus buying.

And what was the main reason for pulling the trigger on a home reno?

Finally having the time to do it topped the list (38%), ahead of finally having the financial means (35%).

As for as popular projects were concerned, kitchens (29%) beat out master/non-master bathrooms (19% and 25%, respectively) and living/family rooms (23%). Updating an outdated or undesirable design/style is the top issue addressed in Canadian bathrooms (52%), kitchens (47%) and other interior room renovations (39%).

Many Canadian homeowners are also tackling home systems upgrades including plumbing (30%), electrical (26%) and heating (21%). For exterior upgrades, it’s spread pretty evenly, with top updates being roofing (22%) windows/skylights (22%) and decking (20%).

Surprisingly, nearly one-third of renovating homeowners take on a remodelling project without setting a budget (31%), the report revealed, and nearly the same share exceed their established budget (29%). These figures are largely consistent across all age groups. The top budget buster is the decision to opt for more upscale products and materials (48%), ohba.ca

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ahead of products/services being more costly than expected (39%) and deciding to change the project scope/design (36%).

Canadian homeowners on Houzz spent $81,000 on average in home improvements in 2015, with homeowners aged 55 and over spending significantly more on home renovations than millennial homeowners ($99,400 vs. $63,500, respectively).

For kitchen renovations, homeowners spent an average of $37,400 on major remodels of a larger kitchen (15 square metres or more), and $25,200 for major remodels of a smaller kitchen.

The survey also noted that the vast majority of homeowners are looking for professional help, with four in five seeking professional renovators. A third of the hires were general contractors, while 13% hire an interior designer or decorator, and 12% seek out a landscape contractor.

T E C H N O L O GY

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12:29 PM

LOCK TECHNOLOGY WILL MAKE YOU A CONVERT Weiser’s Kevo Convert, an easy-to-use conversion kit that transforms any deadbolt into a smart lock, is now available in Canada. The product affords homeowners and renters the added security of a smart lock by quickly changing their existing deadbolt into the modern smart home technology without sacrificing budget or style.

“With an easy, do-it-yourself install, It will instantly upgrade your Weiser or other manufacturers’ deadbolt with smart-home technology,” says Steve Kolobaric, Weiser marketing manager for Spectrum Brands Inc. “It quickly fits to the interior side of a door, eliminating the need to remove a current deadbolt or sacrifice the style of an existing door hardware.

Available at select retailers at an MSRP of $199, the Kevo Convert offers modern security features like monitoring your lock and controlling who has access to your home—all from your smartphone. It also includes the ability to lock and unlock your front door with

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your phone within Bluetooth range.

Features also include the optional Auto Lock Security, which automatically locks your front door after the lock is unlocked and 30 seconds has passed, eliminating the need to double-check the front door before bed. There’s also the option to upgrade to Kevo Plus, giving you the ability to lock and unlock your front door from anywhere in the world if connected to the Internet.

T E C H N O L O GY

BOSCH APP IS BEYOND MEASURE

Bosch Contractors and designers can lose the paper and pencil and ditch the project binder. The Bosch MeasureOn app is here.

Users can download the free MeasureOn app to any iOS or Android device, allowing them get a clear digital overview of all project details, including floor plans, measurements, photos and notes.

The app works via Bluetooth with the Bosch BLAZE GLM 50 C and Bosch GLM 100 C laser measures, allowing users to create entire floorplans, store project images with measurement overlays and notes, speed up the measuring process, improve measurement precision, enhance the organization and reliability of project documents and reduce information transfer mistakes.

It’s virtually an end-to-end project management platform in the palm of your hand. Users can simply snap a photo and then overlay precise measurements. Or they can use floorplan measurements to create a digital drawing of the project, sharing every project detail with the team. ohba.ca

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T E C H N O L O GY

BRK EXTENDS ITS CANADA-FRIENDLY PROGRAMS Alarm manufacturer BRK Brands introduced the world’s first battery-powered smoke alarms in the 1960s and has been innovating ever since. Its commitment to current and future success includes a ‘zero-waste’ program to recycle expired smoke alarms as well as the creation of a new scholarship—the BRK Award of Excellence—for Canadian university students.

“We are proud to be the industry leader today in the new-home construction, electrical distributor and electrical contractor markets,” says Jim Rotz, president of BRK Brands, Inc. in Canada. “We want to sustain our industry-leading position and our status as the only company that markets a ‘zerowaste’ or sustainable product.”

Ionization alarms contain a small amount of radioactive material. BRK has developed a program to handle that material and recycle it along with the metal and plastic components of its alarms through its Recycle Your Alarm program (recycleyouralarm.com).

“Our competitors manufacture their products in China and have no way of recycling their alarms,” says Rotz.

“Because we produce in North America we have the ability to ship expired product back on the same truck that the new product comes in on. Our factory is certified to recycle the entire smoke alarm.

“Alarms wear out and need to be replaced every 10 years,” notes Rotz.

“There are 13 or 14 million households in Canada and the ability to recycle dead or expired alarms is a key strategy that we developed. It’s an initiative we spearheaded—first in the world.”

BRK Brands is also the first in Canada to introduce an all-in-one strobe and smoke alarm, meaning a contractor only needs to install one unit instead of two. A wiring harness was also developed so that an installer could remove a competitor’s alarm and replace it with one of BRK’s own without replacing all of the other units in the house. OHB ohba.ca

Product Focus I DE A S FOR B U I L DE R S & R E N OVAT OR S

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STEP ON IT! Gripping developments in roofing and high-tech flooring

BY DA N O ’ R E I L LY

As renovators prepare for the upcoming season, there are some encouraging signals on both the economic and product side of the building ledger.

Citing factors such as a vibrant resale market and an aging rental and ownership housing stock, Canada Mortgage ohba.ca

and Housing Corporation in its most recent Housing Market Insight report predicts Ontario’s renovation spending is poised for additional growth in 2017.

“Overall we’re expecting positive momentum to continue in 2017.

Residential renovation is still prevalent

throughout Canada and is a large part of the re-roofing market,” says IKO Canada’s Vice-President of Residential Sales, Rob Davidson, in providing a manufacturer’s perspective.

To meet that expected market demand, renovators have a wide array ONTARIO HOME BUILDER RENOVATION 2017

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Recommended insurance provider of the OHBA The risks you face as a home builder are unique.

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Product Focus

Henry’s self-adhering and skid-resistant Blueskin RF200 creates a watertight barrier.

of building materials to choose from in roofing and flooring. Manufacturers such as IKO are designing new products or enhancing existing ones with new colours, designs and techniques, which, they suggest, will improve durability, create curb appeal and improve on-site working conditions.

Asphalt shingles continue to be the most popular residential roofing material for contractors and homeowners throughout North America, says Davidson. That analysis is based in part on what company officials observed at the International Roofing Exposition (IRE). Held in Las Vegas this past March, the exposition was an opportunity for IKO to showcase its new Ultra High Profile Ridge Cap Shingles, which complement and pair seamlessly with its premium and performance shingles.

Available in 16 colours, the preformed, pre-cut ridge cap shingles provide enhanced aesthetics and both beautify and protect the roofline—one of a roof’s most vulnerable areas, says Mark Okland, product development manager at IKO North America. “Ridge cap shingles are often used to provide a weather-shedding system for where roof planes meet. These perimeters are also the highest stress areas on a roof, which need an extra layer of protection from weather elements.”

Where does Okland see the roofing market heading? “There are three major product trends we’re keeping an eye on in 2017: aesthetics, energy-efficient ohba.ca

options and premium shingles.”

With increased concerns about the environment by both builders and homeowners, IKO expects to see increased demand for Energy Star roofing options as well, notes Okland.

OH, GET A GRIP! Another product in the limelight at IRE was the Tyvek Protec roofing underlayment. Dupont Protection Solutions conducted considerable extensive technical research before bringing the product to the market.

Intended for slopes of 2.12 degrees or higher, it adds an extra layer of protection for the roof, not to mention for roofers! “Not only did we engineer a product that will protect the home; we have provided a product that will keep

installers safe,” says Maggie Abbey, the company’s Canadian marketing lead.

A unique embossing pattern provides a superior grip that won’t give way even in wet or dirty conditions.

Installers can continue working even if it starts raining or if they encounter an area covered in dirt or sawdust. There is enough grip that the shingles can slide just enough to feed to the worker doing the nailing, but won’t slide down the entire roof. The Protec rolls out flat, is very easy to reposition, there are no wrinkles and the chalk lines will not disappear, assures Abbey.

Builder reaction was extremely positive at the IRE, where installers were able to walk on it and “felt confident even when it was wet and covered in debris.”

Recalling the high-velocity winds that slammed much of Ontario in March, Abbey says she believes most homeowners would appreciate having a roofing underlayment like Tyvek Protec on their roofs in case the shingles blow off.

That worrisome scenario is also why builders and renovators should consider the Blueskin RF200 from Henry, says residential business development leader Martin Kuypers. Reinforced with a textured skid-resistant polyethylene film, the RF200 is an SBSmodified bitumen high-temperature roofing underlayment. The membrane is specifically designed to be selfadhering on sloped roofs to protect the Easy to position and also to reposition, Tyvec’s Protec roofing underlayment allows roofers to work more safely despite rain, dirt and sawdust.

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Product Focus building’s interior from damage caused by water infiltration as a result of ice dams or wind-driven rain. With the RF200 fully bonded to the roof deck, homes are watertight even if severe winds damage the final product on the roof, such as shingles, says Kuypers, stressing the importance of following local building code ventilation requirements.

With the increase of severe weather patterns, builders and renovators have to be cognizant of the need for a roof that will withstand those conditions, echoes Tim Baun, president of Cedar Roof Ontario. Not only are they long lasting—with a life cycle that can last between 35 to 40 years—cedar roofs are an environmentally friendly product that adds value to a home and reduces heating and cooling costs, Baun says.

“We worked on it to make sure what we brought to market was the best possible product from both a design and technological performance perspective,” says Gencher.

Part of a three-year endeavour, Gencher says the company was employing a new technology and had to push research efforts to the point at which it was satisfied. “We viewed multiple versions and would not release anything until convinced the visual realism and quality was where it needed to be.”

It’s par for the course for Torly’s, says Gencher, noting that company president Peter Barretto dedicates a considerable amount of time researching

new trends and technologies and that representatives “travel the world and visit all the major flooring shows to stay on top of any trends coming down the pipeline.”

In some cases, technology is resurrecting old concepts. A prime example is in the realm of vinyl flooring, which was popular decades ago because it was new and easy to install, but fell out of favour. “But now luxury vinyl flooring is in a big resurgence due to new manufacturing technology and techniques,” says Gencher, emphasizing that technology is crucial in developing environmentally friendly flooring options.

ANOTHER STEP FORWARD On the flooring front, while almost entirely used in commercial retirement residences hotels or retail spaces, the ComSlab floor system just might be the flooring answer for renovators tackling complicated niche projects. Developed by Vaughan-based Bailey Metal Products and combining steel and concrete cured together and bonded structurally as one element, this lightweight, easily maneuvred system features a quickly installed selfpositioning interlocking system. Being stronger and lighter than other flooring, it allows for shallow depths and clear spans, explains Tony DiGiovanni, the firm’s national director of market and business development.

As for advances in more traditional flooring, technology is playing an ever-increasing role. Take Torontobased Torly’s, which spent three years perfecting its Corkwood line before releasing it in March. Available in two versions, Corkwood Designer and Corkwood Elite, it’s a specially designed engineered floor offering the beauty of hardwood, the durability of laminate and the comfort of cork— all in one floor, says Torly’s V.P. of Marketing Brian Gencher.

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Environmentally friendly, Cedar Roof Ontario’s roofing boasts a life cycle of 35-40 years.

Torly’s new Corkwood engineered flooring (Designer series Grey Fairwinds Oak pictured) combines comfort, durability and beauty.

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Product Focus

RENO SPENDING STAYS STRONG IN 2017

Using a natural process to reveal the grain and texture of hard maple, Lauzon’s Organik series adds three new colours, including Rustica (pictured).

“We hear from both homeowners and designers that they are very concerned about the origin and quality of the materials in their homes. They want their design choices to reflect a respect for the environment.”

BACK TO BASICS At the same time, a desire to step back from the high-tech world also influences consumer decisions. At least that’s the assessment of Lauzon Distinctive Hardwood Flooring brand manager Priscilla Bergeron. There is almost a direct correlation between fast-paced technological change and the basics that many homeowners are seeking in flooring.

“While those changes have generally improved our lives, it can also feel unsettling,” says Bergeron, which is why several residents want their homes to be “an organic natural place” where they can nurture themselves and their families. “We hear from both homeowners and designers that they are very concerned about the origin and quality of the materials in their homes.

They want their design choices to reflect a respect for the environment.”

As well, they want quality, appearance, durability, low or zero VOC, not to mention a made-in-Canada product, 90

ONTARIO HOME BUILDER RENOVATION 2017

says Bergeron. All of Lauzon’s products are created with its Pure Genius lightactivated, air-purifying technology, which breaks down bacteria, viruses and moulds. Using a natural process to reveal the grain, texture, knots and the mineral streak of hard maple, the Quebec-based manufacturer has added three new colours to its Organik Series: Sombra, Rustica and Minera.

“The neutral tones of the Organik Series offer a world of decor possibility, particularly with that family-centric notion of the Great Room, kitchen, family and dining rooms merging into a welcoming open space with natural hardwood flooring providing a sense of unity,” Bergeron says.

Lighter pastel tones of cream and beige are some of the current popular flooring colours, notes Penny Hodges, sales and marketing coordinator for Vintage Flooring. Available in smooth or handscraped textures, the unique features of the company’s White Oak Greystoke flooring is a combination of caramel and

Although published last September, an optimistic analysis of the Ontario renovation market in Canada Housing and Mortgage Corporation’s Housing Market Insight report remains valid, according to a key corporation official.

“Although the average growth rate of home renovations is not likely to match that of the last couple of decades, the province is still set to see an increase,” says CHMC’s regional economist Ted Tsiakopolous. “Ontarians are aging, the housing stock is aging, home prices are on the rise and more homebuyers are turning to the resale market. All these factors support renovation spending.

“We’re particularly bullish on the 55 to 65 age group,” says Tsiakopolous, explaining many homeowners in that segment would rather renovate their existing home than look for a new one.

Among the report’s findings, Southwestern Ontario has the biggest potential for growth, while the GTA has the least— for reasons that include modest job growth, low affordability levels, a below-provincial median age and less pent-up demand due to a historically high sales-to-population ratio.

Noting there is a strong correlation between renovation spending and resale activity, with CMHC analysis showing households undertaking renovations within 12 months of purchasing a home, the report pegged renovation spending in 2015 at about $25 billion. While a specific figure for 2017 was not identified, CMHC expects renovation spending to range from $25 billion to $27 billion for both this year and 2018, says Tsiakopolous.

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ONTARIO HOME BUILDER RENOVATION 2017

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Product Focus

A patent-pending eco-friendly technology enables Silent Floor Solutions to both eliminate and avoid squeaky flooring.

grey tones with a dark undertone.

Asked for her take on the flooring market, Hodges says builders and renovators should expect to see a continued movement to greater widths and longer board lengths.

Certainly, a new product rolled out late last year by Karndean Designflooring would seem to underscore that prediction. Measuring 59 inches by 9.85 inches, with a 0.5mm wear layer and a 4.5mm thickness, the LooseLay Longboard is Karndean’s longest plank design. Inspired by aging French oak boards and recycled American pine, the new collection features 12 woods. In a press release, Karndean says the LooseLay can be installed in patterns like a herringbone or on a 45-degree angle with a one- or two-plank border.

SILENCE IS GOLDEN Of course, sometimes renovators and their clients would prefer to simply rid themselves of annoying noises in existing flooring rather than opting for an expensive new one.

“Squeaky floors are often the result of structural wear and defects 92

ONTARIO HOME BUILDER RENOVATION 2017

Lighter pastel tones are trending, such as Vintage Flooring’s White Oak Greystoke (Smooth model pictured).

originating from a host of things, including ducts, water and gas pipes, cables, wires, braces, loose joists, distortion in subfloors, moving elements within ceilings or walls, spaces forming between floorboards due to drying and rotting and loose nails and screws, or worn hardwood boards rubbing together,” says Lev Remennik, principal of Silent Floor Solutions.

Now in its eighth year, the Torontobased firm utilizes an eco-friendly process of treating squeaks, and demand for the service continues to increase, he says.

A patent-pending engineered technology is used to eliminate the squeak and prevent new ones from forming in hardwood, parquet, carpet and stairs by stabilizing the internal layers of wood flooring where the squeaks originate. Tiny holes are strategically drilled into the floor to apply an engineered adhesive that spreads evenly between the internal layers and problem areas causing the squeaks. The holes are then finished, making them virtually invisible, he says.

Keeping things warm and dry underfoot, Amvic’s insulated PEX panel for hydronic radiant floor heating combines

a number of unique elements. The combination of expanded polystyrene insulation moulded to high-impact polystyrene film makes for a stronger, more resilient interlocking PEX panel.

Additionally, the panel nubs form a mushroom shape, locking the PEX piping firmly in place. Once inserted, it guarantees that the pipe is properly positioned and seated in the panel. Further, the oversized, four-sided tongue-andgroove interlock system makes for quick, easy and secure installation.

“It has been specifically designed to provide the most cost-effective installation and performance characteristics for hydronic radiant floor heating systems,” says Victor Amend, President and CEO of Amvic Building System. “And the innovative panel design ensures that the tube will be completely encased in concrete and not pushed to the bottom of the panel as some competitive product do. This will allow for the proper heat distribution of the radiant tubing and more efficient energy transfer.”

Consider it another step in the right direction for insulated flooring—a product that will help with your overhead, not to mention underfoot. OHB ohba.ca

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Words to Build By

“ BUILD IT AS IF IT WERE YOUR OWN HOME.” TOM COCHREN, PRESIDENT, THOMAS COCHREN HOMES

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ONTARIO HOME BUILDER RENOVATION 2017

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