To curb growing activity in the underground economy, save jobs and stem government revenue losses, OHBA says consumers should get HST and GST rebates on contractor renovation projects.  For example, the current Home Renovation Tax Credit has been tremendously popular and encourages consumers to seek out legitimate contractors.

With the future of the Home Renovation Tax Credit unknown, and the looming HST introduction for July 1, 2010, the future looks somewhat uncertain for the renovation industry.  To find the full Altus report on the impact of sales tax harmonization on the residential renovation sector, please visit the Ontario Home Builder’s Association website.

Want to Renovate?  The Time is NOW!

The Canadian Home Renovation Tax Credit (HRTC) only applies to eligible home renovation expenditures for work performed, or goods acquired after January 27, 2009 and before February 1, 2010.  Agreements or contracts must be entered into after January 27, 2009 to qualify.

That makes now the perfect time to renovate.  The temporary nature of the credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects.

Not only are you getting money back through the HRTC, but right now vendors are offering very competitive prices to stimulate consumer spending.

How the Home Renovation Tax Credit Works

The Home Renovation Tax Credit provides a 15% credit, claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000.  This makes the maximum tax credit that can be received $1,350.

The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings.  Properties eligible for the HRTC include houses, cottages, and condominium units that are owned for personal use.  Rental units are ineligible.

Renovation costs for projects such as finishing a basement or remodeling a kitchen are eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.  Here are a few examples of projects that are eligible and those that are not eligible:

Savings can add up quickly, and the investments made through renovation can make a huge difference in the equity of your home.  If you’re thinking about renovating, landscaping, home improvement projects or any kind of construction job within the next 12 to 18 months, consider accelerating your plans to take advantage of the HRTC by calling Super 7 Group today!.

For frequently asked questions regarding the Home Renovation Tax Credit (or HRTC), please visit the Canada Revenue Agency website.

Lump Sum Tender involves the owner assuming responsibility to find and retain an Architect independently of the general contractor.  The architect is responsible for designing the building and producing working drawings and specifications.  When the architect is complete the design phase, the project is offered for general or invited lump sum tender to general contractors on a competitive basis.

Construction Management joins the owner, architect and any engineers, as well as the construction manager, in a team approach to construction.  The owner is responsible for contracting all parties separately for fees based on services required.  The construction manager prepares a budget and schedule from the Architect’s drawings and specifications.  Fast tracking the project can be accomplished since some of the design work is done concurrently to the start of construction.

Design/Build companies take responsibility of contracting all parties involved in the project.  Therefore, general contractors assume the task of retaining architects, engineers, and trade work.  Design-build delivery methods have a number of variations, but most can be placed in one of two categories:

• Stipulated Price: in essence, the owner or client provides general construction requirements, types of spaces, and preferred construction materials, plus a total cost for how much they are willing to pay for construction of a particular building.  Competing firms present proposals to illustrate conceptual designs and provide specifications for building systems to be provided at the client’s price.
• Construction Management: the client awards a contract to a construction manager on the basis of a fee.  The construction manager designs the project and solicits bids from subcontractors and suppliers.  The total of these bids plus the construction manager’s fee determines the total price the client pays for the building.

E-mail us your questions about construction, renovation, landscaping, and design, and we’ll feature your question on our new blog.  In addition, you’ll receive a free design consultation from our expert project managers.

In addition, we’ll feature hot topics on construction and interesting reading materials for anyone considering starting a project.

-The Super 7 Team.