What should you do if repairs take longer than planned?

Delays in renovations beyond the planned deadlines are one of the most common sources of stress for homeowners in Calgary. The main rule in such a situation is to remain calm and act systematically, relying on documents, legal norms, and existing dispute resolution mechanisms. It is important to understand that delays can have various causes, ranging from objective circumstances such as weather conditions or material shortages to problems with the contractor or breach of contractual obligations.

Analyzing the reasons for the delay in repairs

Before taking any action, it is necessary to determine the real reasons for the delay. In Calgary, as in all of Alberta, weather conditions are traditionally one of the most common factors affecting construction work. Winter temperatures below -15°C often lead to the suspension of outdoor work for safety reasons. Some work, such as concrete pouring, roofing, and exterior cladding, becomes virtually impossible in extreme conditions without additional costs for temporary heating and protective structures.

However, not all delays are weather-related. According to the Calgary Construction Association, many projects experience delays due to a lack of labor at the right time or supply chain issues. This is particularly true for 2024-2025, when the construction industry is experiencing a period of increased demand for housing following Calgary's citywide rezoning.

An additional factor contributing to delays may be the permitting and appeal process. Since the introduction of new zoning regulations, the number of appeals for building permits has increased, and the average time between filing an appeal and its consideration is 68 days. During this period, the owner's expenses may increase by approximately CAD 500 per day due to property taxes, interest on loans, and alternative costs.

Reviewing the contract and documenting the situation

The basis for any action should be a thorough review of the contract with the contractor. Most properly drafted construction contracts contain provisions on deadlines for completion of work, procedures for making changes, conditions for termination of cooperation, and dispute resolution mechanisms. Particular attention should be paid to the presence of force majeure clauses that may justify delays due to weather conditions or other unforeseeable circumstances.

If the contract contains clear provisions on deadlines and penalties for their violation, this significantly strengthens the owner's position. However, even in the absence of such provisions, the owner has the right to demand that the work be performed within a reasonable time in accordance with the general principles of contract law.

It is critically important to systematically document all aspects of the repair work. This includes keeping a work log, photographing the condition of the property, saving all invoices, correspondence with the contractor, and recording telephone conversations. Such documents can be decisive in the event of litigation or alternative dispute resolution procedures.

Communication with the contractor and finding solutions

The first step in resolving a delay issue is to have an open dialogue with the contractor. As Lambert Brothers experts advise, it is important to give the contractor an opportunity to explain the situation, disclose their limitations, and present a plan to resolve the issue. Many conflicts arise due to unclear expectations or insufficient communication between the parties, so open dialogue can often prevent the problem from escalating.

During such a conversation, it is important to identify the specific reasons for the delay, obtain a realistic estimate of the time needed to complete the work, and discuss possible compensation measures. For example, if the delay is due to a shortage of materials, the contractor may offer alternatives or cover the additional costs for expedited delivery.

The results of such negotiations must be documented in writing, preferably in the form of an addendum to the original contract. This will avoid misunderstandings in the future and provide a legal basis for further action if the agreements are not honored.

Tenants' rights during renovation work

For tenants, the situation of delayed repairs has specific features regulated by Alberta's Residential Tenancies Act. Tenants are entitled to compensation if the repairs render the premises partially uninhabitable. The court may reduce the rent in proportion to the extent to which the tenant is deprived of the use of the premises.

It is important to understand that in Alberta, tenants cannot independently stop paying rent due to repairs. A reduction in rent is only possible by court order in accordance with Section 37 of the Residential Tenancies Act. The tenant has the right to apply to the court for a reduction in rent in proportion to the extent to which the breach deprives them of the benefits of the lease.

In the case of major repairs that require the premises to be vacated, the landlord is required to give 365 days' written notice of termination of the lease. In addition, the landlord must provide compensation or alternative accommodation and offer the tenant the opportunity to return after the work is completed.

Alternative dispute resolution mechanisms

If it is not possible to reach an agreement through direct negotiations, it is advisable to resort to alternative dispute resolution methods. There are several specialized organizations in Calgary that provide such services.

The most effective and cost-effective method is mediation. Mediation is a voluntary process in which a neutral intermediary helps the parties reach a mutually acceptable solution. The advantages of mediation include the speed of dispute resolution (usually from a few weeks to a few months), the confidentiality of the process, and the preservation of business relations between the parties.

For construction disputes in Alberta, there is a special system called Construction Prompt Payment Adjudication, administered by the Alternative Dispute Resolution Institute. This system was introduced in August 2021 to ensure the prompt resolution of disputes related to payment or performance of work. The procedure is a simpler and faster alternative to court proceedings.

Arbitration is another option, especially if the contract contains an arbitration clause. Unlike mediation, an arbitration award is binding on the parties. However, arbitration is usually a more expensive and lengthy process than mediation.

Legal remedies and court proceedings

If alternative methods have failed, it may be necessary to resort to the court system. In Alberta, construction disputes involving amounts up to CAD 50,000 are heard in small claims court, which is a more accessible and expeditious option.

When preparing for litigation, it is critical to have complete project documentation, including contracts, invoices, correspondence, and photographic evidence of the state of the work. The court will assess whether there was a breach of contract, whether the delays were justified, and the amount of damages suffered by the owner.

Possible types of compensation include reimbursement of direct losses (additional living expenses, lost rent, etc.), indirect losses (lost opportunities), and, in some cases, penalties. However, the court will only award compensation for losses that can be proven with documentation.

Use of builder's liens

In cases where a contractor has stopped work or a dispute over payment has arisen, owners and contractors may use builder's liens under Alberta's Prompt Payment and Construction Lien Act. A lien allows a party that has performed work or supplied materials to secure a legal interest in the property.

The lien must be registered within 45 days after the completion or termination of the work. Once registered, the owner cannot sell or mortgage the property until the dispute is resolved. This creates an additional incentive to settle the dispute quickly.

It is important to understand that liens have strict procedural requirements and deadlines. Failure to comply with these requirements may result in the loss of the lien. In addition, if the dispute is not resolved within two years, the court may cancel the lien.

Insurance aspects and compensation

In some cases, delays in repairs may be covered by insurance policies. Builder's risk insurance or project interruption insurance can compensate for lost income due to delays in project completion. Such policies are particularly relevant for commercial projects or investment properties.

For homeowners, standard property insurance policies rarely cover repair delays as such, but may compensate for additional living expenses if the repairs were caused by an insured event. It is important to carefully review the terms of the policy and notify the insurer of any problems in a timely manner.

When working with insurance companies, it is important to remember the deadlines for submitting claims and the need to keep all documents. Delays in reporting claims may result in their rejection.

Preventive measures and recommendations

The best way to avoid delays is through careful planning and contractor selection. Before signing a contract, check the contractor's licenses, get recommendations from previous customers, and review ratings with the Better Business Bureau.

The contract should include clear deadlines for completion of work, procedures for making changes, payment terms, and dispute resolution mechanisms. It is advisable to include penalties for delays, but take into account objective factors such as weather conditions or delays in obtaining permits.

Regular monitoring of work progress and maintaining open communication with the contractor helps identify potential problems early on. Keeping a detailed work log and photographing progress creates a reliable evidence base in case of disputes.

Features of seasonal construction in Calgary

The specific climate conditions in Calgary require special attention to seasonal factors when planning repairs. The winter months are traditionally a period of increased risk of delays due to extreme temperatures, snowfall, and icy conditions. However, recent years have shown a trend toward milder winters, allowing some types of work to continue even during the coldest months.

Experienced Calgary contractors plan their work with seasonal characteristics in mind: they try to complete exterior work before the onset of frost and leave interior work for the winter. Each day of downtime due to weather conditions can cost CAD 500 due to ongoing facility maintenance costs.

Owners should realistically assess the time frame for projects planned for the fall and winter and allow extra time for weather delays. Alternatively, consider suspending exterior work for the winter and resuming it in the spring, especially if this saves significant money on temporary heating and protective structures.

Financial planning and risk management

Delays in repairs inevitably lead to additional financial costs. In addition to the direct costs of continuing the work, owners face alternative costs: continued rental of temporary accommodation, loss of income from investment property, and additional interest on loans.

To minimize financial risks, it is recommended to create a reserve fund of 15-20% of the total repair budget. This reserve should cover not only unforeseen expenses for materials and work, but also possible delays in the project.

When financing repairs through credit lines or construction loans, it is important to discuss with the financial institution the possibility of extending the loan term in case of delays. Some banks offer flexible terms for construction projects, taking into account the specifics of the industry.

Conclusion

Renovation delays in Calgary are a complex problem that requires a comprehensive approach to solve. The most important thing is to keep documentation, maintain communication with the contractor, and know your rights under the contract and provincial law. If there are objective reasons for the delay, such as extreme weather conditions or problems with the supply of materials, it is worth showing understanding and seeking compromise solutions. However, in cases of clear breach of contractual obligations by the contractor, you should not delay in resorting to alternative dispute resolution mechanisms or the court system.