BC Secondary Incentive Program

What is the Secondary Suite Incentive Program?

The Secondary Suite Incentive Program will help homeowners create affordable housing in their communities. The program will provide money to help homeowners create a new secondary suite on their property to be rented out for below market value.

Homeowners who qualify will receive up to 50% of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan—a loan that does not need to be repaid if the homeowner follows the terms of the program.

For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, set by BC Housing, for at least five years.

This seems like a great opportunity for families. Firstly, renting to family below going rates is a given. Plus, grown children are finding it increasingly difficult to purchase their own home. Building on your existing land is a huge cost saving. Just having the flexibility of being ready for any eventuality is great security.

See more at https://www.bchousing.org/housing-assistance/secondary-suite

Why Constructo Group offers Design-Build

My first post of 2024! Last week, as part of moving Constructo Group into the digital world, Jared, a young media specialist, asked "what's with this design-build thing?"

My answer: For us, its our response to the the complexity of getting a building permit here, in and around Victoria. When I visit potential customers, they describe what they want, then ask how much will that cost, how long will it take, when can you do it, and do we need a building permit.

Getting a building permit has become so complex, time consuming, and so scary for people, that customers will actually pass on moving ahead. Of course, there is the possibility that if a contractor is willing to proceed without a permit, then maybe, maybe owner will go ahead.

To address owner concerns, and hopefully move the project ahead, we now offer design-build contracts. They are made in two phases: the first is preconstruction phase, where we look after getting the land survey, do a feasibility report, get arbourist report, engineering, landscape drawings, architectural drawings, variances, development permits, material, fixture and finishes selections, and trade contractor quotes. The next phase is the construction phase where we carry out the plan - seems the easy part now.

That is what the design-build thing is about for us.

Capital Daily article on secondary and garden suites in local municipalities

Capital Daily article on secondary and garden suites in the area August 9, 2023 - link to article

One secondary suite owner summed up the process this way:

Stucchi said municipalities must reconsider their costs and bylaws for secondary and garden suites to get more homeowners on board with renovating and leasing their properties so they can help accommodate a growing demand for affordable housing.

“I would say to people, ‘Be prepared for an up-hill battle.’”

Contracts and Covenants

When looking for contract forms for Constructo, I adopted the one which used the word covenant. It read:

“Contractor’s Responsibilities: Contractor accepts the relationship of trust and confidence established between Contractor and Owner. Contractor covenants with Owner to furnish their best skill and judgment in furthering the interest of the Owner. Contractor will provide the overall planning and direction to produce a well designed and constructed project which meets Owner’s requirements of function, schedule, and budget.”

For me, ‘covenant’ rang home. I recognized that this is a promise built on commitment and responsibility. Just as important as this is for you, our customer, it tells us that we must maintain the capability and capacity to successfully perform your work. This means recruiting capable people and keeping us all up to date; building and maintaining that rainy day fund, as well as looking after our health and fitness.

When we promise to do our best, it actually helps everyone concerned.

What is a general contractor

A general contractor is responsible for overseeing work at a construction site. They communicate with clients and coordinate subcontractors, taking care of various segments of the work. They consult with designers, provide an estimate for the budget, and carry out the plan.

General contractors are responsible for the outcome of a building project, sometimes participating in the actual manual labor as well, while other times they manage several construction crews at different sites. They manage everything from schedules to work permits and equipment.

Becoming a general contractor is less about textbook knowledge than hands-on experience in the construction business. Reading blueprints, drawing up estimates, keeping track of things, and communicating with clients and workers is most of the job. More often than not, general contractors start out as skilled builders and pick up the rest along the way.

How we are working to improve cost control.

Because cost overruns can cause owners significant distress and hardship, we are continuously working to improve our cost control. To this end, we keep detailed job costs which we use to do preliminary estimates during the pre-construction phase. This helps with decisions as design progresses. We also draw on key trades for reality checks. Then, when design is near permit stage, we get quotes from our subcontractors and present the costing to you. With this information, you can make informed choices of how to proceed. Once the construction phase begins, we do bi-weekly comparisons of actual costs relative to the projected costs. This information gives you a solid basis when considering changes, extra work or potential deletions.

About cost-plus Contractor's Fee

Having just read our agreement form, a client asked:

“I’m not really understanding this but honestly, I’m not sure I care how the costs are split up so much as the total cost.  I’m assuming this 15% is an industry standard-ish fee? “

Me - Yes, our cost-plus percentage means you are invoiced for work performed, deposits due, plus a contractor fee. We typically invoice every two weeks for the bills and time received, plus the contractor fee, plus GST. By invoicing in this manner, we assert that the invoice is for costs necessarily and reasonably incurred in execution of the contract.

In terms of the overall total cost, when the drawings have been approved by you, we invite subcontractors to provide quotes for their portion of the work. We put all these costs together in an estimate so you can see the total estimated cost. In reviewing the estimate with you, we discuss areas where costs might increase and also where possible cost reductions might be had. Once you approve and give go ahead, we carry out the work, keeping you apprised of progress and costs.

Ownership of Design and Design Documents

In our contract, we claim ownership of the designs when we provide them. Here is a note from a potential client after reviewing the contract.

“Out of curiosity, if we have paid to have the plans drawn up, then why don’t we own them?  I’m assuming this is some sort of industry standard thing but I’m curious as to why.  Not that I think this is likely, but I can vaguely foresee situations where we are forced to abandon ship half way there.  Of course, we’d want to pay you for all costs incurred and work done etc.  But having done so, why aren’t the documents ours, so that at some later date we might restart the effort?”

Response - This is an industry standard as the client suggested. We specifically include the claim so that we can use parts of the design to build other jobs down the road without fear of copyright infringement.

Losing Control - Collaboration

As general contractors, our primary role is coordinating. During the preconstruction phase, we can involve designers, engineers and key trade contractors. Our goal is to reap the benefits of collaboration. Because decisions made at this time determine the project outcome, our prime concern is to stay true to our client’s, your, intentions.

Trust and staying connected

Trust never goes out of style. Once construction on your project starts, there are a lot of demands and stressors on everyone, including you, the owner.

Mistakes do happen and when they do, trust can wain. We’ve found that keeping connected with you is the best way to insure we are operating on the correct information. In this time of COVID, in person connection is reduced with increased possibility of getting "‘our wires crossed.’

To this end, we have adopted online project management tools to share information. It is helping keep track of the many decisions needed and alerting each of us what needs to be done and when. This technology is helping us stay connected and we hope that with experience we will get better at using it.

How the increased seismic requirements are affecting 2nd floor additions

The Greater Victoria Area was upgraded for seismic risk in 2012. For second floor additions, this means increased engineering requirements. Historically adding a second floor meant new point loads(downward loads) but now it means addressing lateral loads as well: spread footings, reinforcing steel in foundations, increased connections from foundation to framing and plywood sheathing added to existing walls to create brace panels.

Because of these new requirements, raising your home to add a second storey may be the more efficient solution. Drawbacks to raising your home and adding a level below is that the use of the upper level may need to change. This requires interior renovations which add to the cost. The best situation is when the upper floor continues to be used as is, with the new lower floor becoming a separate living unit. This way, the added unit can readily be built to conform with structural and other safety considerations.

THE MORE INFORMATION THE BETTER

When you make an inquiry, we follow up with emails, phone calls, and a site visit if looks like we might be a match. It can be scary to share your information with us - someone you do not know. However, I’m hoping you will because the more information you provide, the more valuable our responses can be.

The Indoor GeneratioN

I recently attended a talk by Doctor Trevor Hancock who studies the social and health effects of us spending increasing time indoors - we are missing out on fresh air and sunshine.

Today, I found the newspaper article "The Indoor Generation: How light and air quality affect our well-being"  https://paidpost.nytimes.com/velux/the-indoor-generation.html?tbs_nyt=2018-may-nytnative_morein&cpv_dsm_id=190427743    in The New York Times.

Hope you will check it out.

Overview of Renovation/Addition Process

Pre-Construction Phase

First Meeting

We meet with you on site to discuss your plans and how we might work together.

Client Vision and Needs Development

Once we agree to work together, we test your boundaries to better learn what is important to you, the budget you are prepared to work with, and potential time constraints. 

Concept Development

With these parameters and your feedback fresh in our minds, we prepare sketches and schematics to capture the identified elements. Municipal and site investigations are carried out, as well as land survey if required. Then, in a back and forth review process, your requirements take shape. Along the way, engineers and key trades are consulted to get a sense of do-ability and cost.

 Design Development

Permit and working drawings are prepared and when you are satisfied with these drawings, we put together a package for your approval: plans, itemized cost estimate and proposed timeline. Depending upon the project, a Development Permit, Building Permit, or Variance can be applied for at this time. 

Selecting Fixtures and Finishes

Now, we work with you selecting and cataloging the fixtures and finishes. This involves visiting supplier showrooms, discussions with specialty contractors, reviewing brochures and researching web sites. As the permits or variance are approved, the cost estimate and timeline is adjusted and with your approval we move ahead to the construction phase.

Construction Phase

 Mobilization

Once the Building Permit is obtained. The work crews and contractors are notified of the schedule. Items requiring a long delivery time are ordered. A pre-construction meeting is held with you to review your expectations and concerns. Last adjustments are made to the plan to make certain it works for you.

Implementation

Now the onsite work begins on your home. Equipment, tools and supplies are delivered. The work crews arrive and the transformation takes place. The project is closely monitored for how the job is proceeding relative to schedule, approved budget and adherence to specifications. Throughout this stage there will be regular meetings to keep you informed on the status of the project.

Substantial Completion and Follow-up

When your renovation is ready for occupancy, we do a walk through of the project with you to find how you feel about how it went and the finished product. Following this, we attend to any issues and follow up again in 45 days to see that everything is in order. Then in one year, we do our final inspection to be certain everything is working properly.

What is a Professional Renovator?

Hiring a professional renovator is your best assurance that you will get the results you want and the best value for your money.

A professional renovator is a general contractor, sometimes referred to as a renovation contractor, who can put your whole project together. The renovator will assume complete responsibility for the work contracted and give you a warranty once it's completed.

1.     A professional renovator has an extensive business network of suppliers, trades, installers and experts that they draw on as required for your project.

2.     A professional renovator understands the technical aspects of construction in detail and knows how houses work. They can assess your project and explain what is involved, as well as identify potential problems and provide solutions.

3.     If your project requires design services, your contractor can advise you on the most suitable approach and recommend a design professional. Design-build renovators offer both design and construction services and you may hire them for one service or both. Alternatively, professional renovators are also experienced in working with architect's drawings.

4.     A professional renovator has extensive knowledge and experience with the latest products and materials. They keep up-to-date and can help you make the selections that will work best for your project and budget.

5.     Professional renovators are familiar with the regulations and bylaws in your community and how the system works. When needed, they can look after permits and inspections on your behalf.

6.     Professional renovators can work with you on the financial aspects of your renovation. They know what things cost and can help you set a realistic budget to achieve your renovation goals. And they know how to stretch your budget without compromising quality.

7.     A professional renovator ALWAYS uses a written contract that clearly describes the work, materials to be used, timelines, price, responsibilities of both parties and other details as appropriate.

8.     A professional renovator knows how to organize and manage a project-scheduling workers, trades and delivery of materials; keeping track of expenses; maintaining a clean and safe work site; and minimizing the inconvenience to you. When necessary, they know how to deal with the unexpected and the surprises that sometimes occur in renovation.

9.     Most importantly, professional renovators put their customers first. They listen carefully so they know what you want. They provide you with names of previous customers so you can check out the company's track record yourself. They explain the process so you know what to expect, and once the work begins they give you regular updates so you always know what's going on. They also encourage you to voice any questions or concerns you may have as the work progresses. In brief, they work for you and with you to make sure that you are satisfied and happy with the final results.

Wisdom

Some times I see things that seem wise. Here are some:

Good Design = design that mirrors and enhances the way you want to live.

Base decisions on how you will feel about the path taken when looking back in years to come.

How we use our life energy expresses our values and purpose.

Learning the value of engineers

As a young/er carpenter, I was hired to replace a deck off the master bedroom and directly over the daughter's bedroom. The owner wanted to put a hot tub up on the deck and asked me if we should get an engineer. I pshawed that saying I would build it strong enough to hold a tank.  I installed LVLs, metal hangers and beefed up support beams left right and center. 

Some months later, several hours after a significant earthquake, the owner phoned me. When I heard his voice a skid of bricks fell through my stomach. The deck had held up but the owner's concern for his daughter's safety was heightened and mine now also hit high. We brought in an engineer who said we would need remove the drywall from the bedroom walls, install more foundation anchor bolts and sheet the walls with half inch thick plywood.  We drained the tub and moved it to a rear patio.

Every time I remember that situation, my stomach cringes. I feel so ashamed of endangering that girl. As you might imagine, I now take lateral and vertical loading very seriously, plus have increased respect for and work closely with engineers. In fact, when we finish basement areas, we increase foundation anchor bolts  and install plywood sheeting on pony walls as a routine proceedure. 

Stephen Lentz