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Talking Points
Tarion is piloting a new review process within its Builder Arbitration Forum (BAF) aimed at expediting the resolution of builder disputes. As of February, builders can have their disputes assessed by the Dispute Resolution Team (DRT) before proceeding to arbitration.
The DRT will evaluate the builder’s position and Tarion’s assessment upon receiving a completed BAF Application Package. This review may lead to quicker resolutions through mediation or clarification of Tarion’s findings, potentially avoiding the formal BAF process altogether.
- The DRT will review all BAF applications submitted within a 28-day period.
- Builders are not required to request this review; it occurs automatically.
- BAF timelines will be paused during the DRT review, and fees will only apply if arbitration proceeds.
This initiative is significant as it aims to reduce the time and costs associated with builder disputes, benefiting both builders and Tarion by promoting faster resolutions.
A recent Ontario Home Builders Association bulletin reports Tarion is piloting a new step in the Builder Arbitration Forum (BAF) process with the goal of resolving builder disputes faster.
A builder who disagrees with a Tarion warranty assessment or chargeable conciliation determination may dispute Tarion’s findings at BAF. BAF is a formal dispute resolution process that includes written submissions and documentary disclosure by the builder and Tarion and then a hearing conducted by an arbitrator who, after listening to evidence from both sides, issues a final and binding decision.
As of February this year, a new element to the BAF process is a review by the Dispute Resolution Team (DRT) in Warranty Services.
When a builder submits a completed BAF Application Package, the DRT will review the disputed Tarion assessment and the builder’s position and consider whether the dispute may be resolved without proceeding with the BAF. The DRT may contact the builder to request information, explain the reasons for Tarion’s assessment, or discuss resolution. If the builder is disputing an invoice amount, the DRT may recommend mediation.
The DRT review will be done for every BAF Application Package submitted within the 28-day BAF application period – the builder does not have to request the review or do anything new in the application. The BAF timelines will be paused pending the outcome of the DRT’s review and the builder will not be required to pay the BAF administration fee or the deposit for the arbitrator’s costs unless the BAF application proceeds after the DRT review.
Tarion hopes the DRT review will resolve builder disputes quickly without having to incur the time and costs of BAF, either through mutually agreeable settlements or the builder withdrawing their BAF application because they better understand the reasons for Tarion’s assessment.