Canadian Renovation Industry in Crisis: Survey Exposes Widespread Issues and Eroding Trust

Executive Summary

A recent comprehensive survey of Canadians has unveiled a troubling landscape within the home renovation industry, highlighting a crisis of trust and a prevalence of poor experiences. The study, which focused on respondents who had undertaken home renovation or improvement projects with contractors in the past three years, reveals a startling array of issues plaguing the industry.

‍

Key findings include:

1. Nearly 70% of homeowners reported experiencing at least one significant problem during their renovation project.
2. 8.87% of renovation projects end with deposit theft, where contractors absconded with payments for work never completed.
3. Over a third of projects were marred by unexpected costs and delays.
4. Trust in building professionals varies widely, with electricians and plumbers enjoying the highest levels of confidence, while other trades struggle with credibility issues.

‍

These findings underscore an urgent need for reform within the renovation industry, calling for enhanced contractor vetting processes, stronger consumer protection measures, and initiatives to rebuild trust between homeowners and building professionals.

‍

The survey's results paint a picture of an industry at a crossroads, where the dreams of home improvement often collide with the harsh realities of project mismanagement, poor workmanship, and in some cases, outright fraud. As Canadians continue to invest significantly in their homes, with many planning substantial renovations in the coming years, addressing these issues becomes paramount for the industry's future and the protection of consumers.

‍

This report delves into the detailed findings of the survey, offering insights into the scale of renovation projects, specific pain points experienced by homeowners, and the varying levels of trust across different building professions. It also includes expert analysis and recommendations for both homeowners and industry stakeholders to navigate these challenges and work towards a more reliable and satisfactory renovation experience.

‍

"The findings of this survey highlight an ongoing opportunity for reform in the Canadian renovation industry. Trust is the foundation of any successful home improvement project, and the current landscape shows a significant trust deficit. As homeowners invest more into their properties, it is imperative for both contractors and consumers to adopt better practices. Enhanced vetting, transparent communication, and robust project management are essential steps to rebuilding confidence. To rise to the challenges, our industry needs to embrace innovation in this space to help achieve a higher standard of professionalism to ensure that renovation dreams do not turn into nightmares."

Scott McGillivray, Real Estate Expert and TV Host

‍

‍

Data Deep Dive: Canadian Renovation Survey Results

‍

Renovation Project Values and Future Plans

‍

The Canadian home renovation landscape is evolving, with homeowners showing a growing appetite for both current and future projects. This section examines the financial scope of recent renovations and compares them with anticipated future investments. By analysing the distribution of project values, we gain insight into consumer confidence, economic trends, and the potential trajectory of the renovation industry in Canada.

‍

Past Projects (Last 3 Years):

• The majority of renovation projects (62.12%) fell within the $2,500 to $19,999 range.
• 27.99% of projects were valued between $10,000 and $19,999, representing the most common price bracket.
• High-value renovations ($50,000 or more) accounted for 14.34% of projects.

‍

Future Projects (Next 3 Years):

• There's a slight shift towards higher-value projects in future plans.
• The percentage of projects valued at $50,000 or more is expected to increase from 14.34% to 17.07%.
• The $10,000 to $19,999 range remains the most common, but with a slight decrease to 23.89%.

‍

Analysis: These figures suggest a trend towards larger renovation investments in the coming years, potentially indicating increased homeowner confidence or a growing need for more substantial home improvements.

Renovation Challenges and Contractor Issues

‍

Despite the enthusiasm for home improvements, the renovation journey is often fraught with unexpected hurdles. This section delves into the myriad of problems homeowners face when working with contractors, from minor inconveniences to major breaches of trust. By quantifying these issues, we shed light on the prevalence of various challenges and their impact on the overall renovation experience, highlighting areas where the industry needs significant improvement.

‍

Among homeowners who completed renovations 68.26% experienced at least one problem during their project.

‍

The most common issues were:

• Unforeseen delays (33.11%)
• Unexpected extra costs (32.76%)
• Poor quality finishing touches (23.21%)

‍

Alarmingly, 8.87% reported stolen deposits, indicating a significant trust issue in the industry.

‍

Analysis: The high prevalence of problems, particularly delays and cost overruns, suggests systemic issues in project management and communication within the renovation industry. The occurrence of stolen deposits, while less common, represents a severe breach of trust that could have long-lasting impacts on consumer confidence.

"The survey's revelations should be a wake-up call for the Canadian renovation industry. The high prevalence of project delays, cost overruns, and trust issues indicates systemic flaws that should be addressed. Homeowners deserve transparency, quality, and reliability from their contractors. As an industry, we should prioritise rigorous vetting, adopt advanced project management tools, and foster open communication to rebuild trust. By doing so, we can ensure that homeowners feel confident and secure in their renovation investments, ultimately leading to a more robust and trustworthy industry."

Andrew McGillivray, Co-Founder and President of the McGillivray Group and McGillivray Capital Partners

‍

‍

Contractor Vetting Practices

‍

The process of selecting a contractor is a critical step in any renovation project, yet many homeowners may not be taking all the necessary precautions. This section explores the various methods Canadians use to vet potential contractors, revealing both common practices and concerning gaps in due diligence. Understanding these patterns is crucial for identifying areas where consumer education and industry regulation may need to be enhanced.

• 48.12% of homeowners checked online reviews before hiring a contractor.
• Only 35.15% verified the contractor's licence.
• 24.23% checked for corporate liability insurance.
• 12.29% proceeded without any verification or contract.

‍

Analysis: While many homeowners are taking some steps to vet contractors, there's a concerning lack of thorough due diligence. The reliance on online reviews, which can be manipulated, over more concrete checks like licensing and insurance, indicates a need for consumer education on proper contractor vetting.

‍

Trust in Building Professionals

‍

Trust is the foundation of any successful renovation project, yet it appears to be in short supply across various building professions. This section examines the levels of trust Canadians place in different types of contractors and building professionals. By comparing trust levels across various trades, we gain insight into public perception of different sectors within the construction and renovation industry, and identify areas where trust-building efforts are most needed.

• Electricians (48.46%) and Plumbers (46.76%) are the most trusted professionals.
• General Contractors, crucial for larger renovations, are trusted by only 31.40% of respondents.
• 13.65% of homeowners who completed renovations don't trust any building professionals.

‍

Analysis: The higher trust in specialised trades like electricians and plumbers may be due to stricter licensing requirements and the critical nature of their work. The lower trust in general contractors is particularly concerning given their central role in managing larger projects.

Contractor Selection Criteria

‍

When it comes to choosing a contractor, homeowners weigh various factors. This section analyses the primary criteria Canadians consider when selecting a professional for their renovation projects. Understanding these priorities provides valuable insight into consumer decision-making processes and highlights what homeowners value most in their working relationships with contractors.

‍

Top criteria for choosing a contractor:

1. Project bid/initial cost estimate (46.76%)
2. Contractor's honesty (26.96%)
3. Good rapport and communication (26.62%)

‍

Analysis: While cost remains the primary factor, the emphasis on honesty and communication suggests that homeowners are increasingly valuing trustworthiness and transparency in their contractor relationships.

‍

Difficulty in Finding Trustworthy Contractors

‍

Finding a reliable contractor can be challenging for many homeowners. This section explores the perceived difficulty in finding trustworthy professionals for both major and minor renovation projects. By quantifying these challenges, we gain a clearer picture of the trust deficit within the industry and the obstacles homeowners face in initiating their renovation journeys.

• For major renovations (over $5,000): 66.89% find it very or somewhat difficult to find a trustworthy contractor.
• For minor renovations (under $5,000): 58.03% find it very or somewhat difficult.

‍

Analysis: The perceived difficulty in finding trustworthy contractors for both major and minor projects underscores a widespread trust deficit in the industry. This challenge is slightly more pronounced for larger projects, likely due to the increased financial risk and complexity involved.

‍

"The survey's findings on the difficulty of finding trustworthy contractors are both concerning and validating. It's clear that trust is a critical issue in our industry.

We've always believed that transparency and accountability are key to solving this problem. Our platform's two-way rating system and verified review process directly address this trust deficit by providing homeowners with reliable, data-driven insights into contractor performance.

We're committed to supporting contractors in building and maintaining their reputations through consistent, quality work. By facilitating clear communication and fair practices, we're not just connecting homeowners with contractors – we're fostering an ecosystem of trust that benefits all parties."

Jon Christensen, CEO, Bidmii International Inc.

‍

A Call for Industry-Led Reform and Consumer Empowerment

‍

The comprehensive survey of Canadian homeowners reveals a renovation industry at a critical juncture, plagued by widespread issues that erode trust and satisfaction. While government intervention may be limited, this crisis calls for a collaborative approach between consumers, industry leaders, and innovative companies to address the systemic problems revealed by the data.

‍

The onus now falls on Canadian citizens to demand more from the renovation industry. As informed consumers, homeowners must exercise due diligence, insist on transparency, and support platforms and contractors that prioritise trust and quality. By voting with their wallets and actively participating in rating systems, consumers can drive positive change from the ground up.

‍

Simultaneously, the renovation industry must rise to the challenge of self-regulation and improvement. Forward-thinking companies are leading the charge by creating innovative solutions that address the pain points identified in this survey. Bidmii's platform, which holds project funds in trust and facilitates transparent communication between homeowners and contractors, exemplifies the kind of industry-led initiative that can transform the renovation landscape.

‍

Key areas for industry focus include:

1. Trust-building mechanisms: The high prevalence of stolen deposits and project issues underscores the need for more robust trust-building tools. Bidmii's approach of holding funds in trust and implementing a two-way rating system offers a model for fostering accountability and transparency.
   
   
2. Improved project management: With over a third of projects experiencing delays and unexpected costs, the industry must invest in better project management tools and training. Bidmii's staged payment system and change order functionality demonstrate how technology can streamline these processes.
   
   
3. Quality assurance: The survey reveals a strong consumer preference for quality over price. Industry leaders should develop and promote quality standards, potentially through certification programs or enhanced rating systems like Bidmii's purchase verified review process.
   
   
4. Consumer education: The data on contractor vetting practices highlights a significant gap in consumer knowledge. The industry should collaborate on public awareness campaigns to educate homeowners on proper vetting procedures and the importance of using secure platforms for renovation projects.
   
   
5. Contractor support: With many contractors struggling with payment issues and time management, platforms like Bidmii that offer streamlined payment processes and project management tools can play a crucial role in supporting the contractor community.

‍

While the Canadian renovation industry faces significant challenges, the path forward lies in a collaborative effort between consumers, industry leaders, and innovative companies. By demanding and creating better systems, embracing transparency, and leveraging technology, the industry can rebuild trust and create a more reliable, efficient, and satisfying renovation experience for all involved. The success of platforms like Bidmii shows that with the right approach, it is possible to transform the renovation landscape and set new standards for quality and trust in the industry.

‍
Methodology

This survey was conducted using Pollfish's Organic Sampling methodology, which utilises Random Device Engagement (RDE) to deliver surveys to real consumers through partner apps. This approach ensures targeted and randomised sampling, reaching respondents in their natural mobile environments. Pollfish's AI-driven fraud prevention and transparent demographic reporting provide high-quality, representative data.

Click here for access to the raw data from this survey.