Performance Audits

The First Year Warranty
For newly constructed condominiums the Condominium Act (1998) and Ontario New Home Warranty Program (ONHWP) required a Performance Audit inspection of the common elements of the Corporation. The purpose of the Performance Audit is to identify and report any major problems and deficiencies with the common elements of the condominium before the end of the one-year timeframe and to submit the warranty claim under the Ontario New Home Warranty Program.

The Performance Audit report must specify deficiencies such as:

  • Structural defects
  • Construction material defects
  • Incomplete or poor workmanship
  • Construction that does not meet the Ontario Building Code (OBC)
  • Premises that are not fit for occupancy

The first year Performance Audit report would also review any existing reports including:

  • Builder Bulletin 19
  • Pre-delivery Inspection (PDI)

The Performance Audit report also includes the results of a survey of Unit owners relating to common element defects that have caused or may cause damage to their Unit.

Timing for the Performance Audit is critical. The Performance Audit must be undertaken by a certified Professional Engineer or Architect no sooner than six months after the registration of the Declaration and no later than 10 months after registration. A copy of the Performance Audit findings must be submitted to the Condominium Board and Warranties Program (ONHWP) before the end of the 11th month following registration.

The Second to Seventh Year Warranty
The second year of the Warranties Program provides coverage for:

  • Water penetration through the basement or foundation walls
  • Defects in materials that result in building envelope water penetration
  • Defects in the electrical, plumbing and heating distribution system
  • Defects in the building cladding or structure
  • Violations of the Ontario Building Code (OBC) that affect health and safety

The Warranties Program provides coverage for major structural defects for seven years.

Our methodology for conducting Performance Audits includes a review of the building and site work common elements to identify possible future problems that may arise but are not readily visible. We provide a detailed listing of deficiencies both noted and reported by the Unit Owners. A thorough and comprehensive report is then produced for the Corporation/Board to review before submitting to the Tarion Warranty Corporation. Reports for common element deficiencies beyond the initial first year can also be provided.

With over 1,400 inspections within the last decade, we have the knowledge, experience and expertise to conduct your Performance Audit.

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