The Ontario Construction Report – December 2008 – PAGE OCR A3
Survey responses: Divided opinions
Publisher’s
While the Ontario Construction Report’s * Independent contractors form an impor-
survey of readers is not a scientific poll, the tant part of the residential construction
viewpoint
results show how seriously divided the con- industry
By Mark Buckshon, Publisher, Construction News and Report Group of Companies
. They are entrepreneurs that
struction industry is on the issue of manda- seek the rewards for their labours and ac-
tory WSIB coverage. Here are some of the knowledge the risks involved. They
comments completed by people who an- should be allowed to work this way if
Times are changing. The heady, fun Similarly, blindly signing up for leads
swered the question: they so choose. Also by making WSIB
and sometimes overwhelmingly good services or (gulp, considering this is our
The Ontario government has an- mandatory the underground economy
times in the construction economy are fi- business) buying advertising where you
nounced proposed legislation that would will increase making for a more uneven
nally ending, and many people in this haven’t advertised in the past will proba-
make workers’ compensation coverage playing field. Those people that are not
business, who started during the relatively bly produce disappointing results.
mandatory for individuals (independent truly independent contractors should be
long ‘up’ cycle have little experience with Your best bets are to look closely at
contractors) in the construction industry declared an employee and they should be
the other side of the coin. Others (myself your current and previous clients and see
who are currently not covered? What do treated as one including WSIB coverage. included) who have been through a few if you can develop a recessionary-value
you think of this change? * It will do nothing to rectify the under- downturns know the drill: You survive based add on or supplemental service; to
ground (economy) which is the primary and even thrive by keeping your eyes on prime the pump for more referrals and so
* I think by forcing subcontractors to pay reason why this is done.
the basics, taking decisive action when- on. You can also gain value, I think,
higher premiums through WSIB in lieu * Too many times independent workers
ever you need to, and always you must through your trade associations, espe-
of their own private coverage it will bid subcontracts and do not have the
watch that red line – the point of no return cially the stories of successful peers in
force our labour costs higher. With the same expense to cover. That gives them
where if you pass it, you cannot recover. other communities – these businesses are
decline in our economy’s stability, in- and unfair advantage. If they are injured
At these difficult, critical points, you need not your competitors and should be able
creased labour costs would be detrimen- on the job they are still entitled to the
tal to our industry
to prepared to respond decisively. to guide you with effective suggestions.
. benefits. We must all pay to be eligible
Things of course won’t be that bad for If you are in Ottawa and sell renova-
* If an independent contractor wants cov- for WSIB.
erage it is much cheaper and better cov-
most of us. If you are good enough at tion services, you will find the new Ot-
* Most independent contractors carry per-
erage to have a disability insurance plan. sonal insurance that is cheaper than
your trade or profession to succeed in tawa Renovates! magazine to be great
WSIB is not helping the independents, it WSIB and offers better coverage with
good times, you can likely do well in dif- value. We are producing this publication
is only after money to help pay other less paperwork. This legislation does not
ficult ones; if you are marginal, you may at the request of the Renovators’ Council
claims. solve the problem of the “underground
have more problems (but then, should you of the Greater Ottawa Home Builders’
* The current system has been working economy”, those working for cash for
be in the business in the first place?) But Association. For more information,
well . . .why change it now. This is a private individuals. how do you adapt to the circumstances – please email Brian Warren at bwar-
change no one wants except the govern- * It is difficult for independent contractors especially since you haven’t needed to ren@ottawarenovates.com or Paul Scis-
ment, and the only reason is to grab ad- and small corporations with few em- ‘market’ your business in the past? sons at pscissons@ottawarenovates.com.
ditional revenue from our industry. I am ployees, to meet all the requirements that
The answer here is to remember that, if
vehemently opposed to this tax grab! are mandatory at this time. Adding an ad-
you previously had a great backlog of
dash2
* This issue has been brewing for some- ditional monthly payment will make it
work because of repeat and referral busi-
time. The residential sector is mostly harder for independent contractors to
ness, you have a really good brand – the By the time you read this note, we’ll
made up of small contractors. We can get stay in business.
cornerstone of effective marketing. The be at the Home Builder and Reno Expo
better and cheaper insurance privately. * I agree that it is a good idea to ensure all
For us this +-8% additional fee will only workers are covered by WSIB as the in-
brand, by the way, is your clients’ percep- (Construct Canada) in Toronto at booth
cause more underground work or people dependent operator status has been
tion of you and your business – if they 114. And the Christmas Holiday Season
leaving the industry
trust you to deliver top-quality work at a is approaching. I trust you will have a
. abused. That said current legislation will
fair price, they call you back, and you are happy and prosperous year in 2009. If
* I hope that this legislation is appealed. exempt renovators. This will leave a gap-
This added layer of bureaucracy will in- ing hole in the legislation and in my
busy. you are running into marketing snags or
evitably mean that many contractors will opinion will allow one of the main prob-
Your challenge in a recession is to re- business development problems, please
be found not to be in compliance, which lem areas to go unchecked.
alize that your brand remains your great- feel free to call or email me. I won’t send
then means the WSIB will have to file * Currently, we make our subcontractors
est asset, and desperate moves outside of you a bill.
claims against them until the perceived show proof of WSIB coverage. If not, we
this brand ‘comfort zone’ are likely to be
remittances are made. Many small con- decrease their draws by the equivalent disappointing failures. Chasing blindly Mark Buckshon is president of the
tractors are already overburdened with amount of WSIB premiums and remit di- after bidding opportunities and RFPs Construction News and Report Group of
various government requirements . . . rectly to the government. where you don’t have experience or pre- Companies, which publishes regional
vious relationships will be daunting and construction publications in several On-
frustrating – your energies spent on tario and U.S. communities. He can be
preparing proposals and travelling great reached toll free at 888-432-3555 ext 224
distances to hope to win work, will prob- or by email at buckshon@cnrgp.com.
ably lead to limited if any new business.
TORONTO VANCOUVER CALGARY MONTREAL
www.trisura.com a step above
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