Attempting not to be an alarmist however Tarion and how builders deal with a new home warranty is about to get very difficult and may substantially impact your business.
Approaching Warranty service the way you did in the past will cost you more, limit how much you can build and impact your reputation.
“…consider all data about a builder’s past building quality and warranty performance when deciding whether to grant a future license”
Take the time to read this summary on how The Special Audit of the Tarion Warranty Corporation of 2019, provides a clear direction of what is coming for Ontario Home Builders and isn’t privatization!
The consumer has changed. They want what they want now and their willingness to pay for a better customer experience. Your service is likely not what they consider customer focused!
Yes, consumer habits have been changing for years however now with the market slowing down the consumer has more options. The consumer will also be more informed with “made public” government oversight of the Ontario New Home Warranty Act i.e. Tarion. Tarion’s mandate will become consumer-focused.
“Builders will no longer have a seat at the table when it comes to how the Ontario New Home Warranty corporation deals with warranty items”
Consumers judge quality by the length of the warranty. As the market returns to normal, builders must prove quality and differentiate themselves. Providing better after-sales support through best-in-class Warranty services, Extended Warranties and Maintenance Programs is an opportunity.
Imagine shopping for a new laptop; you are down to two choices. They both have the features you need and are priced within the same range however one has a better warranty. Studies have proven a consumer believes that if there is a better warranty, then the manufacturer believes in their product performance and more often than not makes that selection. The interesting thing is even if they pay slightly more to get the longer warranty, they believe it is worth it.
Builders often state they build a better home but offer the same mandatory warranty as every builder! If you build better, let’s talk about how to provide better…. Ask us how… HomeBySix!
Market normalization will require builders to understand hidden costs. The cost of service is drastically understated. Focus your site staff on quality, schedule and safety…we’ve got service!
How HOMEBYSIX makes better builders
The future of building in Ontario will put more demand on fewer builders. Building homes need to move toward the concept of manufacturing. Focus on what you are good at and outsource everything else.
Lean manufacturing technics will become the norm within residential home buildings. The skills to run a lean home building company are not the skills that your father possessed. They focus on systems, processes and waste management. Waste management has more to do with TIME and FOCUS than with material and garbage.
5 thoughts on “Ontario new home construction, changes that are affecting your business, TODAY!”
Great read, and useful information.
Glad you appreciated it
Seems like builders had better get on to what is coming. excellent information
As a consumer and home buyer I appreciate the enhancements to the buyers protection in the warranty program changes. I will make sure I buy from a builder that adheres to them and backs their warranty with a third party like Home By Six!
Great, appreciate that you see the value.