The residential construction sector is going strong with more than 6,000 licensed builders and over 30,000 new homes built last year.

In March, our government announced an enhanced licensing system for residential builders to raise the bar of professionalism in the construction industry and give homebuyers even more confidence in their new home purchases.

We are establishing new qualifications and continuing education requirements for home builders constructing single family homes and small residential buildings.

New applicants will be required to demonstrate proficiency in seven areas related to residential construction through a combination of education and experience. Home builders who are already licensed will not need to re-qualify. To renew their licence, all licensed home builders will take continuing professional development courses directly related to residential construction.

This enhanced system will be phased in over the next 16 months to give everyone time to adjust and meet the new requirements. The Homeowner Protection Office (HPO) will continue to administer the builder licensing system. There will not be any additional licensing fees for residential builders.

I’d like to thank all of the associations and organizations that worked with us to design this enhanced licensing system – your input was valuable.

In the coming months, the HPO will share more information on the changes and opportunities. If you have any questions, please contact their office at 1-800-407-7757.

Let’s work together to maintain B.C.’s position as a leader in the residential construction sector.

Sincerely yours,

Rich ColemanDeputy PremierMinister of Natural Gas DevelopmentAnd Minister Responsible for Housing

This special edition of Building BC explains important changes to the Homeowner Protection Act Regulation that were announced on March 4, 2015. It’s intended to help builders understand the changes and how the new requirements, including core competencies, continuing professional development and consumer protection provisions will be phased in over the next 16 months.

I N T H I S I S S U E

Message from Minister .................................... 1

Enhanced Licensing System for BC Residential Builders – A Collaborative Process ..................................... 2

No Changes to Licensing Fees ................... 2

Who do the Changes Apply To? ................ 2

Preparing for the Changes ............................. 3

Phasing in the Changes .................................... 3

New Qualification Requirements for Residential Builders ..................................... 4

Continuing Professional Development Requirements ........................ 5

New Consumer Protection Provisions ....................................................................... 7

Owner Builder Examination ......................... 7

Information for Education Providers .... 7

Learning More About the Changes ....... 8

A Message from the Honourable Rich Coleman

Special EditionBuilding BC S P R I N G 2 0 1 5

Rich Coleman has served as Minister Responsible for Housing since 2005. Under his direction, the provincial housing strategy, Housing Matters, was updated last year to include a commitment to modernizing the building regulatory system.

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Enhanced Licensing System for BC Builders – A Collaborative ProcessThe enhanced licensing system for builders is a significant step forward for B.C.’s residential construction sector and reflects extensive collaboration with stakeholders.The Province embarked upon this collaborative process with industry 10 years ago and it has culminated in these very positive changes. In 2005, the Province released a discussion paper entitled Raising the Bar – Enhancing Professionalism in BC’s Residential Construction Industry and held consultations throughout British Columbia. The proposals were for increased standards for builder licensing that include education and training requirements. Throughout the development of the regulation we continued to consult with industry groups to ensure the new qualification requirements reflect best practices. The enhanced licensing system is largely based on the key recommendations of an industry report prepared by a working group, representing a broad cross section of residential construction industry stakeholders.The Homeowner Protection Office will administer the enhanced licensing system and will continue to work with industry to ensure that it remains fair and accessible to all builders across the province.

Who Do the Changes Apply To? The enhanced licensing system primarily applies to general contractors building single-family homes and small residential buildings in B.C. under Part 9 of the BC Building Code. Under the enhanced system licensed residential builders will be classified as general contractors, developers, or both (as defined in the Regulation). Builders have six months from the date the regulation was announced to choose their status. Any builder renewing a licence that expires on or after October 31, 2015, and builders who are approved for a new licence on or after October 1, 2015 will need to declare their status on their licence application. The HPO’s Public Registry of Licensed Residential Builders will reflect a licensee’s status as either a general contractor developer, or both. General contractors hired by a licensed developer to construct residential buildings under Part 3 of the BC Building Code will not have to be licensed. That’s because there is already a system of professional oversight for larger and more complex buildings under Part 3 of the BC Building Code.The licensing requirements for building envelope renovators will remain unchanged.

No Changes to Licensing FeesLicence fees will remain unchanged.

Much like the phased implementation, maintaining the fees at current levels is intended to minimize the impact on residential builders, while still carrying out the changes needed to increase professionalism and consumer protection in B.C.’s residential construction industry.

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Preparing for the Changes The enhanced system is being phased in over six, 12 and 16 months (see Phasing in the Changes below).

This transition period will give licensees and training providers the time they need to better understand the changes and prepare for the new requirements. During this time the HPO will be finalizing the processes required to implement the new requirements and communicating the details to you prior to the changes taking effect.

For example, for the continuing professional development requirements, after Phase 1 begins licensees will renew as normal and then have until their next renewal, one year later, to achieve the required points to meet the new CPD requirements.

Prior to and during the transition period, the HPO will be reaching out to members of the residential construction industry to provide information and assistance.

Builders can prepare for the changes by checking the HPO website for the latest updates, subscribing to receive email updates, or by attending one of the HPO’s free information sessions. You can find details about resources and free information sessions taking place across the province in the coming months in this newsletter and online at www.hpo.bc.ca.

• New licences approved on or after October 1, 2015

• Renewing licences expiring October 31, 2015 and later

September 4, 2016

March 4, 2016

July 4, 2016

Phase 1

Phase 2

Phase 3

Continuing Professional Development (CPD) • After Phase 1 begins licensees will renew as

normal and then have until their next renewal, one year later, to achieve the required points to meet the new CPD requirements.

• New licensees will be required to begin a program of CPD as a condition of their next licence renewal. See page 4 for details.

Consumer Protection Provision• The HPO Registrar may refuse to approve a new licence or renew a licence if there has been a history of bad business practices that harm consumers. See Page 7 for details.

Qualifications (Education & Experience) • New qualification requirements for licensed general contractors take effect. See page 4 for details.

Owner Builder Exam• Those applying for an Owner Builder Authorization from the HPO will have to pass an exam on home building basics, in addition to meeting the current criteria.

To allow residential builders time to prepare, the enhanced licensing system will be phased in over the next 16 months.

Phase New Requirements Effective Date Phasing in Period

P H A S I N G I N T H E C H A N G E S

Six months after the March 4, 2015 announcement about changes to the Homeowner Protection Act Regulation

12 months after the March 4, 2015 announcement about changes to the Homeowner Protection Act Regulation

16 months after the March 4, 2015 announcement about changes to the Homeowner Protection Act Regulation

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New Qualification Requirements for Residential Builders Under the enhanced system, there are new qualification requirements for licensed general contractors who build single-family homes or small residential buildings under Part 9 of the BC Building Code. In order to obtain a licence, new applicants will need to demonstrate proficiency in seven core competencies related to residential construction and have a minimum amount of relevant experience. Existing licensees, in good standing, are considered to be already qualified.

If a general contractor allows their licence to lapse or has their licence cancelled, they will then need to re-qualify by demonstrating proficiency with the requirements should they wish to apply for a new licence.The new qualification requirements do not apply to general contractors applying for a second licence if they have an existing residential builder licence.

Experience RequirementsAs part of the new qualifications applicants will be required to show that they have a minimum of 24 months of experience obtained in the previous 5 years managing or supervising residential construction.

CompetenciesAn applicant for a new licence must successfully demonstrate proficiency in seven core competencies as described in full in Schedule 6 [section 4.01 (2)(b)] of the Homeowner Protection Act Regulation.

Applicants can demonstrate proficiency by completing approved training courses.

These new requirements will take effect on March 4, 2016.

The seven core competencies are:• Relevant enactments – the purpose of the BC Building Code and BC Fire Code (including the Vancouver

Building Bylaw) and how they apply to residential construction.• Construction management and supervision – including project planning, cost estimating, scheduling,

materials procurement, scope of work changes, contingency planning, site reporting, site safety and staff/contractor management.

• Construction technology – including building durability, control of heat and moisture flow, building envelope features, mechanical systems and structural components, and the effect of climate and soil conditions.

• Customer service and home warranty insurance – including maintaining positive customer relations, implementing a customer service plan and responding to defects identified under a home warranty insurance policy.

• Financial planning and budget management – including basic accounting, construction financing and contingency planning.

• Legal issues – including contract and consumer protection law, the land title registry, obligations respect-ing insurance and home warranty insurance, builder liability, the Homeowner Protection Act and Builders Lien Act, dispute resolution, and the effect of provincial enactments and municipal bylaws.

• Business planning and management – including strategic business planning, management and administration.

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n NEXT STEPS

• Over the coming months, the HPO will work with potential training providers to approve courses that meet the requirements.

• We will publicize the list of approved courses and update it continually. The HPO will develop a method for reporting and assessing the required experience.

• The HPO Builder Portal will be enhanced to accommodate the new qualifications within the existing online licence application process.

New Qualification Requirements for Residential Builders cont’d

To obtain a new licence, applicants must meet the minimum experience requirement and complete recognized training courses in each area of competency from approved organizations, or provide proof of equivalent training or experience. The HPO intends for equivalencies to be recognized through a prior learning assessment and recognition process.

Licence applicants will be able to choose from a range of options to fulfill the requirements. The Homeowner Protection Act Regulation outlines a broad variety of possible training providers, from post-secondary institutions to industry associations.

An applicant company may name one or more nominees who can demonstrate proficiency in the seven core competencies to meet the conditions of the enhanced licensing requirements.

A nominee must be a director, officer or partner of the applicant, or an employee or manager who is responsible for managing residential construction.

Licensing ExemptionIf the general contractor is engaged in the construction of Part 3 residential buildings, they will be exempt from licensing, as there is already a system of professional oversight for larger, more complex buildings.

A general contractor who claims to be exempt must provide acceptable proof that they are exempt on the request of the registrar.

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Continuing Professional Development RequirementsThe quality of new homes in B.C. and the professionalism of the industry relies on general contractors remaining up-to-date on residential construction best practices, Building Code requirements, building science, business planning and management and other areas.

Under the enhanced system, all licensed general contractors will be required to take Continuing Professional Development courses (CPD) in order to renew their licence each year.

The CPD may be in any of the following areas, as long as it is directly relevant to residential construction:

• Building Code • Construction management and supervision• Construction technology • Customer service and home warranty insurance• Financial planning and management • Legal issues• Business planning and management • Business ethics

Over 50% of your CPD must be in either Building Code, construction management and supervision, construction technology, customer service and home warranty insurance, or a combination of these four subjects.

Understanding the CPD Points SystemThe new requirements for Continuing Professional Development apply to any licensed general contractor renewing a licence that expires on or after October 31, 2015, and all general contractors who are approved for a new licence on or after October 1, 2015. You will have up until the date of your next renewal (one year later) to achieve the required CPD points.Licensees must complete a minimum of 40 CPD points each year (i.e. during the term of their licence). CPD points can be accumulated through a combination of on-the-job learning through active practice as a home builder, formal learning or informal learning.

You can earn one CPD point by completing:• 20 hours of active practice – being actively engaged in the

construction management of new homes during the year.

• 0.5 hours of formal learning – attendance in structured courses and training sessions (including an exam or assignment) from approved organizations.

• One hour of informal learning – participation at conferences, seminars, workshops, industry association meetings, or residential construction research and development.

To obtain the required minimum of 40 points, you may apply: • up to 20 points from active practice, • up to 40 points from formal learning, and • up to 20 points from informal learning.

Active practice 20 20

Formal learning 0.5 40

Informal learning 1.0 20

Learning Method

Hours of learning that must be completed to claim 1 point

Maximum claimable points for each learning method

C P D P O I N T S Y S T E M

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Active practice means being actively engaged in the construction management of new homes during the year. We recognize that builders who are not actively engaged in home building are less likely to be up-to date with construction practices than active builders. Active builders can claim up to half of their continuing education points as active practice.

Formal learning means attending structured courses and training sessions (which would include an exam or assignment component) from approved organizations. Two points are earned for every hour of formal learning. For example, an active builder (earning 20 points for being active) can meet the rest of their CPD requirements during the licence term (one year) by completing 10 hours of formal learning.

Informal learning can include attendance at conferences, seminars, and workshops, meetings of industry associations, and participation in residential construction research and development primarily related to the core competencies. Informal learning is defined in the learning methods section of Schedule 7 of the amended Homeowner Protection Act Regulation.One point can be earned for every one hour of informal learning attended. The process to evaluate informal learning is being developed and will be communicated at a later date.

Active Practice

Formal Learning

Informal Learning

A licensee company may name one or more nominees who will be responsible for obtaining the required continuing professional development points on behalf of the company. A nominee must be a director, officer or partner of the applicant, or an employee or manager who is responsible for managing

residential construction. If more than one nominee is named to complete CPD, each nominee must complete the CPD requirements (i.e. 40 points each). Builders will be able to choose from a range of options from a variety of education providers. The HPO will publish and maintain a list of acceptable courses online. Potential courses and seminars may be in any language, as long as they meet the requirements. The cost of CPD will depend on the options chosen, which can include a mix of active practice and formal and informal learning. Many builders are already members of associations and attend seminars and courses that could be applied to their CPD requirements.

n N EXT STEPS

• In the coming months, the HPO will be working with education providers and trade organizations to develop a comprehensive list of courses that will allow general contractors to meet the continuing professional development requirements.

• The course offerings will be continually updated and communicated to licensees. • To accommodate the professional development requirements, the HPO Builder Portal will be

enhanced to include the new qualifications within the license application process.

Continuing Professional Developmet Requirements cont’d

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New Consumer Protection ProvisionsThe changes to the Homeowner Protection Act Regulation include important consumer protection provisions. Effective September 4, 2015, the HPO Registrar may refuse to approve a new licence or renew any licence if there has been a history of bad business practices that harm consumers.

A licence may be denied if the applicant has been the subject of an order, a monetary penalty, a conviction or a judgment under the Homeowner Protection Act or other legislation prescribed in the regulation (for example, the Real Estate Services Act) in the past five years; or has been convicted of an offence involving fraud in the past 10 years.

All licence applicants (including renewing licensees) will be required to disclose all such breaches on their application.

A licence may also be denied if, at any time, the applicant or licence holder has been found by a court to be in material breach of their contract with a buyer of a new home.

These provisions are intended to protect homebuyers from bad business practices and will give consumers even greater confidence in their new home purchases.

n N EXT STEPS

• The HPO will investigate a model for administering the exam and develop the examination questions.

• At this time the HPO is not planning to deliver exam preparation training, but will make the exam topics available to potential training providers who may wish to offer preparatory classes.

Owner Builder ExaminationAs of July 4, 2016, those applying for an Owner Builder Authorization will need to pass an exam on home building basics set by the HPO.

This new requirement will help owner builders expand their knowledge about home building basics, enhance the quality of homes constructed by owner builders, and increase consumer protection.

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Information for Education Providers Providers of residential construction education in B.C. will play an important role in the new licensing system. Both Continuing Professional Development and qualifications training can be provided by: • Universities, colleges, and institutions recognized under the Private Career Training Institutions Act, • The Canadian Construction Association, Canadian Home Builders’ Association, Independent

Contractors and Businesses Association, or Urban Development Institute, or• An organization that regulates a profession. The HPO registrar may also recognize other educational bodies or professional organizations in B.C. and in other jurisdictions.

n N EXT STEPS

• We will be communicating with builders as more implementation details become available. • The HPO continues to collaborate with industry through BC Housing’s Industry and Consumer Advisory

Council, the Builder Advisory Council, and the Builder Qualifications Committee.

Learning More about the Changes Over the next two months, the Homeowner Protection Office is offering free information sessions across the province. These informative sessions are designed to help builders understand the changes to the Homeowner Protection Act Regulation and the new requirements, including core competencies, continuing professional development and enhanced consumer protection provisions. The HPO’s Vice President and Registrar, Wendy Acheson, who worked with the Province and industry to develop the new regulation, will be available to answer your questions.

To register online to attend an information session in your area visit our HPO website.

You can also sign up for email updates about the enhanced licensing system and new requirements for BC home builders. Click the ‘email subscriptions’ link at the top right of our home page at www.hpo.bc.ca

We encourage you to visit the HPO website for regular updates. You can also follow us on @hpo_BC

Your feedback is important. We welcome your comments by phone or email Qualifications@hpo.bc.ca.

n N EXT STEPS

• There will be an approval process for both new applicant qualifications training courses and CPD opportunities.

• Education providers may contact the HPO for information at qualifications@hpo.bc.ca or 604-646-7050. The HPO will be developing special collateral materials and communicating with education providers over the coming months.

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Homeowner Protection OfficeBranch of BC HousingPhone: 604-646-7050Toll-free: 1-800-407-7757Fax: 604-646-7051Email: Qualifications@hpo.bc.cawww.hpo.bc.ca

For more information, contact the HPO at:

Register to attend one of our free HPO information sessions in a community near you.

MARCH 23 • CRANBROOK (5:00 pm- 6:30 pm) Cranbrook Heritage Inn, 803 Cranbrook Street North MARCH 24 • CASTLEGAR (5:00 pm- 6:30 pm) Super 8 Motel, 651 - 18th Street MARCH 26 • BURNABY (5:00 pm- 6:30 pm) Hilton Vancouver Metrotown, 6083 McKay Avenue MARCH 30 • WHISTLER (5:00 pm- 6:30 pm) Hilton Whistler Resort, 4050 Whistler Way MARCH 31 • SECHELT (5:30 pm- 7:00 pm) Seaside Centre, 5790 Teredo Street APRIL 2 • ABBOTSFORD (5:00 pm- 6:30 pm) Ramada Plaza & Conference Centre, 36035 North Parallel Rd APRIL 7 • SURREY (5:00 pm- 6:30 pm) Surrey Arts Centre, 13750 - 88th Avenue APRIL 13 • PENTICTON (5:00 pm- 6:30 pm) Ramada Inn and Suites, 1050 Eckhardt Avenue West APRIL 14 • KELOWNA (5:00 pm- 6:30 pm) Ramada Lodge Hotel, 2170 Harvey Avenue APRIL 15 • KAMLOOPS (5:00 pm- 6:30 pm) Double Tree Kamloops, 339 St. Paul Street APRIL 20 • NANAIMO (5:00 pm- 6:30 pm) Coast Bastion Inn, 11 Bastion Street APRIL 21 • COURTENAY (5:00 pm- 6:30 pm) Crown Isle Resort, 399 Clubhouse Drive APRIL 23 • VANCOUVER (5:30 pm- 7:00 pm) Science World at TELUS World of Science, 1455 Quebec St APRIL 27 • PRINCE GEORGE (5:00 pm- 6:30 pm) Prince George Civic Centre, 808 Civic Plaza MAY 4 • VICTORIA (5:00 pm- 6:30 pm) Harbour Towers Hotel, 345 Quebec Street MAY 5 • FORT ST. JOHN (5:00 pm- 6:30 pm) Pomeroy Hotel, 11308 Alaska Road MAY 20 • BURNABY encore presentation(5:30 pm- 7:00 pm) Hilton Vancouver Metrotown, 6083 McKay Avenue

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