Shift 4 - Managing the distribution of liability and risk
effectively
This shift examines distribution of liability in the building regulatory
system in order to reduce inequity among participants and balance
accountabilities when building defect disputes arise. Although the provincial
government is not reviewing joint and several liability at this time, the
Ministry of Attorney General has recently completed a consultation on a proposal
to reduce the Ultimate Limitation Period (ULP) from 30 to 10 years. This shift
assumes the possibility of a reduced ULP in the near future.
Our Modernization Strategy discussions with building stakeholders have
revealed a lack of consensus on a proposal to introduce mandatory
post-construction bonding, and liability and project-based insurance, as a way
of mitigating the costs of liability imbalance. At this time, further research
into data collection and its impact on analyzing construction liability issues
is being examined.
The Ministry of Attorney General has completed their consultation on the
Ultimate Limitation Period. The Modernization Strategy will be kept participants
informed as new developments from this review occur.
| Please Note: This Shift reflects updated material based on
consultation to date with industry, local governments, owners,
developers, designers, consumers, builders and trades. Previous material
related to this Shift can be found in the
background materials of the
Modernization Strategy website. |
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