The Regulation respecting the guarantee plan for new residential buildings regulates the liability of the contractor (developer) for any problem related to the quality of the construction work. In this regard, this regulation has provided for a specific protection regime for divided co-ownership. Whether it is a private or common portion, a co-owner or the syndicate of co-ownership is entitled to ask the contractor or the administrator of the guarantee plan, namely the Residential Construction Guarantee (GCR), to carry out this work, at any time during the term of the protections.
Safeguards implementation mechanism
In order for the Garantie de construction résidentielle (GCR) to be seized of a claim, the beneficiary (a co-owner or the syndicate of co-owners) must make a denunciation to the contractor (developer). A copy of this denunciation shall be sent to GCR with a view to interrupting the extinctive prescription. At this stage, the claim does not yet exist – GCR does not intervene and no file is opened.
After a minimum period of 15 days following the transmission of the denunciation, the beneficiary may submit a complaint to GCR, if he is dissatisfied with the intervention of the entrepreneur where he has not intervened. The beneficiary must pay GCR a fee of $100 for the opening of the file and these costs are reimbursed only if the decision rendered is in his favour, in whole or in part, or if an agreement is reached between the parties involved.
Subsequently, GCR addresses the contractor to ask him to intervene and to inform him of the measures he intends to take to remedy the situation denounced.
Within 15 days of the expiry of the period granted to the Contractor, if the situation is not corrected to the satisfaction of the Beneficiary, GCR shall conduct an on-site inspection and conciliation between the parties.
Within 30 days of this inspection, a report (decision) is prepared noting either the settlement of the file between the parties or the absence of the settlement. A copy of this report must be sent by registered mail to the parties involved.
In the latter case, GCR decides on the application in particular by rejecting it or by ordering the contractor to carry out the corrective work.
Arbitration Process
This decision of GCR is subject to review by an arbitrator, at the request of the Contractor or Beneficiary within 30 days of the decision. Arbitration costs are shared equally between the administrator and the contractor when the latter is the claimant.
Where the claimant and the recipient, these costs shall be borne by GCR unless the recipient is successful in any aspect of its claim, in which case the arbitrator shall decide between these costs.
Execution of the work
Only when the contractor fails to comply with GCR's decision will GCR be required to take over the corrective work. GCR will then be able to recover from the contractor the sums it had to commit to do so.
WHAT YOU SHOULD KNOW! If a co-owner or the syndicate is obliged to have necessary and urgent conservation measures carried out itself, the latter may claim reimbursement from the contractor and the administrator using the applicable procedures.
WHAT TO KEEP IN MIND: The scope of the guarantees is set out in the Regulation respecting the guarantee plan for new residential buildings. An explanatory guide specifies the scope of the guarantees that have been implemented by the Régie du Bâtiment du Québec (RBQ).
WARNING! The mission of the Régie du bâtiment du Québec (RBQ) is to develop policies designed to avoid any conflict, real or apparent, between the construction community and the administration of the guarantee plan. In this regard, the RBQ has sanctioning powers for cases where the director fails to meet his obligations.
Back to the mega-sheet Residential guarantee plan for new residential buildings (mandatory)
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