PEI

Building industry still pushing for contractor licensing to rein in scams, unfinished work

CBC
Tue, October 10, 2023

The construction industry association says Islanders need to be careful when hiring contractors who are not regulated or licensed in the province. The association would like to see rules change to protect customers. (Nicola MacLeod/CBC - image credit)

P.E.I.'s building industry continues to call on the provincial government to bring in a contractor registry or licensing program to ensure more accountability as a labour shortage stretches on.

The Construction Association of P.E.I. has been making that request for nearly three years, but says there has been no progress, and the issue has only worsened since post-tropical storm Fiona caused nearly $300 million in damage a year ago.

"The fight has really not landed anywhere as of yet," said general manager Sam Sanderson.

"There's probably not a day goes by that my phone's not ringing [and] somebody has an issue with a legitimate or illegitimate contractor creating problems around quality of work, procurement and the money that they put down for deposits."

Earlier this year, a P.E.I.-based contractor was sentenced to 20 months in jail for theft and fraud.

In another case, a Stratford man was charged last month over allegations he fraudulently took money for construction work.

Some taking advantage

Sanderson said he believes those are only the beginning of charges or investigations to come, based on complaints that have reached him in the past year.

"There's so many so-called contractors and professionals [who came] out of the woodwork the day after Fiona," he said.

Sam Sanderson says bringing in a licensing or regulatory system would provide accountability and responsibility while gaining public trust. (Nicola MacLeod/CBC)

The association says P.E.I. lags behind other provinces when it comes to regulation. All the other provinces in Canada have safety associations requiring certification, and many also have builders' codes.

"We want to make sure as an industry that people are getting quality work for a reasonable price and that there's a procurement process in place to protect them — the owner — but also to protect the contractor as well."

Sanderson said some warning signs for homeowners could be if a contractor:

asks for cash payment;


directs customers to purchase materials themselves; or


asks for large down payments up front, higher than the industry standard of about 20 per cent.

Sanderson also suggested getting references, asking for a contractor's business number, and ensuring the operation has insurance and workers compensation coverage.

"You have to be licensed to be a plumber, you have to be licensed to be [an] electrician, you have to be licensed for various other trades across the province. You don't have to be licensed to be a builder or a roofer. You know, we'd like to see that changed," he said.

"It gives people some accountability, it shows some responsibility."

Keeping Islanders, consumers, and businesses alike safe is certainly a priority and undertaking such an initiative would require collaboration and participation between government and stakeholders. — P.E.I. government statement

When asked how conversations with the province were going on this process, Sanderson said: "It hasn't been going great."

CBC News reached out to the province's departments of Housing, Land and Communities and Justice and Public Safety for an update on the association's request.

A joint statement came back saying the departments are aware of the importance of the topic.

"Keeping Islanders, consumers, and businesses alike safe is certainly a priority and undertaking such an initiative would require collaboration and participation between government and stakeholders," the emailed statement read.

"We will continue to work with [the association] on advancing the Island's construction industry, and look forward to continued discussions in any future meeting."