Partner in collapsed apartment subject to building ban: agency

Man owed money to warranty group for defects in earlier residential projects

A partner in an apartment being built in west London that partially collapsed last week was banned from building new homes to sell in Ontario, and allegedly owes more than $700,000 to settle claims for other properties he built, Postmedia has learned.

Shaun Stevens, a partner in Brock Development Group, lost his licence in October 2017 with Tarion Warranty Corp., an agency established by the Ontario government to administer the province's new home warranty program, a Tarion spokesperson said.

Stevens is a partner in Brock Developments, developer of a four-storey apartment at 555 Teeple Terrace where a section of the fourth floor collapsed last Friday, causing heavy concrete, building materials and part of a wall to fall to the first floor. Two construction workers, John Martens, 21, of Langton and Henry Harder, 26, of Tillsonburg were killed. Five workers were injured.

Before Stevens became involved in the apartment project, called Nest on Wonderland, he owned a company called Treadstone that built condominiums at 433 Hyde Park Rd. and other units at 567 Rosecliffe Terrace. The company built a total of eight units between 2014 and 2016.

But after owners moved in, they began making claims to Tarion.

“There was a big jump in claims in 2017 when people moved in and problems became apparent,” Tarion spokesperson Andrew Donnachie said.

Ontario requires builders of new homes to provide warranties. Tarion licenses builders and ensures the owners of new homes receive the coverage they're entitled to under their builder's warranty.

The agency tries to resolve disputes between homeowners and builders and will investigate claims by homeowners and pay to remedy defects, if necessary. The agency also regulates new home builders to ensure they meet provincial standards of technical competence and financial capability.

Tarion paid $727,106 to repair condominiums built by Treadstone at 433 Hyde Park Rd. and other units at 567 Rosecliffe Terrace, Donnachie said.

He said the money was paid to fix defects in the units identified by their owners that included repairing drywall, flooring and kitchen cabinets.

The total paid by Tarion also included more than $41,000 for “major structural defects” that rendered five units unlivable for a period, a Tarion report said. Issues that could make units unlivable include water damage from a leak, and foundation or roof damage.

When Tarion pays to have defects repaired, builders are required to repay the agency.

Stevens has not repaid the money and it is now the subject of collections action, Donnachie said.

“We refused to renew his registration. The last interaction we had with him was an ongoing collection process,” he said.

Stevens could not be reached for comment.

Stevens also lost his licence with Tarion over questions about construction quality and builder conduct, Donnachie said.

“There are multiple factors why we did not renew,” he said. “It could be related to competency, financial responsibility and builder conduct.”

Builder conduct involves “honesty and integrity” where builders have to conduct themselves in a way that is professional, Donnachie said.

As of Nov. 30, 5,740 builders were registered with Tarion, he said, and the agency revokes or rescinds an average of 25 to 30 registrations a year.

“It is not a common occurrence.” Lois Langdon, chief executive of the London Home Builders' Association, agrees it is rare for Tarion to suspend a builder's licence.

“They do a lot of builder education as to industry standards. They will not renew if they don't have confidence in the builder.”

Though Stevens is barred from building new homes for sale, he can build property for rent, so the mid-rise construction on Teeple Terrace did not violate his ban, Donnachie said.

“It does not fall under our jurisdiction,” he said.

Nest on Wonderland is not registered with Tarion.

Michelle Doornbosch, president of Nest, downplayed Stevens' involvement in the project.

“I work with Shaun Stevens on land acquisitions and land development proposals only. Shaun is not involved in the construction of this project, is not on site and does not manage any subtrades. I cannot comment on any past projects of Shaun's,” Doornbosch said.

She said her husband Jeremy Doornbosch is the site foreman and supervisor for Nest and has been on site since the outset of the project. There is also a site supervisor that works under Jeremy Doornbosch.