The reason for the group is take the guess work out of finding a reliable tradesmen to fix whatever you need fixed.
The logic is that as a group you have more purchasing power then as an individual. That might not make the job cheaper but it does give you comfort that the person you hired will want to do the job right because of all the other people that potentially need their services that you the homeowner know.
Now this sounds like a simple thing, to create a list of people and companies to do work for your neighbors, it usually is, except in cottage country.
What is different in cottage country? Well there are a lot of "handy people" who charge for services that they do, whether that is repairs, maintenance or just keeping watch on other peoples cottages. A lot of these people charge cash, as in they are avoiding paying tax, avoiding telling the government that they are running a business.
Now not paying tax might seem like a great thing because you spend less money as the homeowner, but it also has a lot of problems associated with it;
- Insurance. Any trade or construction company that you hire to work at your cottage or home should be fully insured. This is so that if they damage your home then you are made whole. If they do not have insurance then your own home insurance will be void as well, meaning if the home was to be destroyed from fire or structural damage you wouldn't be covered at all!
- WSIB. Companies require wsib for their employee's. Individual contractors that are working for you the homeowner do not require it. But they do require personal liability insurance and insurance to protect them if they get injured. If they don't and they get really hurt or worse their family could sue you the homeowner for compensation because it happened at your home. Also if someone didn't have insurance and got hurt at your home you the homeowner are considered the contractor,that means that legally you could be charged with negligence for not making sure that the person was working safely.
- Warranty. When cash is exchanged that means that there is no warranty. Now if someone is doing some simple maintenance maybe you don't care about maintenance, but for larger jobs like a new deck or windows where there is a lot of money involved you want a warranty. When you spend a lot of money you should expect a warranty.
- Resale. Cottages have risen in value in the last decade everywhere. The amount of people looking to buy cottages have never been higher. Nothing raises your cottage value like a good renovation. Nothing hurts your cottage value like a bad renovation. Buyers now are more picky hiring home inspectors and they can also ask if the work on the cottage was completed in a legal manner.
Now as properly insured and registered company that employ's professionals for all aspects of the cottage renovation process I spend a lot of time explaining to homeowners why I have to fix someone else's work. The damage that is caused by people who don't know what they are doing is worse then you can imagine.
I recently had to repair a wall that was full of carpenter ants. The wall was so wet and damaged that we had to completely remove the wall and build a new one, why? Because the guy 5 years earlier who installed the new siding failed to put a proper flashing/drip edge between the siding and the deck above. This allowed the water from snow and rain to run down the siding, hit the deck and run behind the siding into the wall cavity. In 5 years the entire wall was destroyed.
Things like improperly installed windows void the manufactures warranty immediately. The same as improperly installed siding and shingles. The cost of material has never been higher, installing it improperly shortens its life span.
One other thing is that professional companies spend time educating themselves on new techniques and new products. The construction industry has never changed as fast as it is now, with new products coming out to help homes last longer and survive the ever changing weather that is affecting us, these products have very specific ways that they need to be installed or they will fail.
So in the future when you are looking for repairs, renovations or even to build a new cottage look for a professional company that is insured and that will do the work the right way. Yes you will have to pay tax, but you will also be protected in more ways then one.
Rob Abbott
Great Lakes Custom Homes Inc.
