July 29, 2005

Renovations

Law limits contractor extras

PEGGY HILL

staff writer

Laws go into effect tomorrow that limit the final cost of a renovation project to no more than 10-per-cent higher than the original estimate.

But renovators can live with the new Consumer Protection Act without any stress, says Stephen Dupuis, vice-president of the Greater Toronto Home Builders’ Association (GTHBA).

If the cost of a project goes beyond the permitted limit, the extra amount will come out of the renovator’s pocket.

Dupuis said the GTHBA has been aware of the change for a while. It has integrated language reflecting the legislation into its standard contracts that are available to renovators.

Under the new act, individuals can be fined up to $50,000 and corporations up to $250,000 if they break the rules. The law also covers other contract services such as moving and appliance repair.

Dupuis said GTHBA members will be impacted by the act, but he doesn’t see them as its target.

He suggested it was crafted more for home improvement contractors, particularly ones that move around, rather than professional renovation companies.

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