Reduced Liability for Local Governments in Conducting Building Inspections

Year
2013
Number
B2
Sponsor(s)
Burnaby

WHEREAS the Province of British Columbia has recently updated the Limitation Act to be generally consistent with limitation-period related requests made by both the UBCM and the Municipal Insurance Association of BC MIABC, which is a significant improvement to the previous legislation; AND WHEREAS the Local Government Act Chapter 323, Section 290 provides for specific liability exceptions to local governments in certain circumstances, and in particular for the approval of building plans submitted by a professional engineer or architect: THEREFORE BE IT RESOLVED that the Province of British Columbia consider changes to appropriate legislation to further protect local governments from liability exposure in conducting building inspections when field reviews are carried out by professional engineers or architects registered in British Columbia.

Provincial Response

Ministry of Community, Sport Cultural Development Local governments have advocated for a change to the nature of liability apportionment arising from municipal oversight of building construction for many years. While UBCM acknowledges that the Province has taken some significant steps in addressing local government liability issues with the enactment of a new Limitation Act in 2012, they have continued concerns with the impact of joint and several liability flowing from local governments role in approving the design and construction of buildings and undertaking inspections. In past policy papers, UBCM has taken the position that local government liability should be apportioned on a proportionate basis, such that individuals and organizations would be responsible for the consequences of their own actions and not for the actions of others and that liability should be limited to the degree of responsibility of the participant. The Negligence Act provides for the apportionment of damages on the basis of joint and several liability. Joint and several liability is a mechanism to ensure that the plaintiff may recover from all defendants. The purpose of joint and several apportionment is to ensure that the plaintiff does not ultimately bear the loss for the negligent act of another. This has resulted in increased local government risk aversion to avoid disproportionate damage awards being assessed in cases of building failures. Some local governments have responded by considering withdrawing from the area of building code inspections and enforcement, particularly in the area of complex structures. This resolution advocates for a more limited approach to proportionate liability within the context of limiting local government liability exposure in conducting building inspections when field reviews are carried out by professional engineers or architects. However, this approach would result in a shift of liability to one set of parties professional architects and engineers for a broader spectrum of possible building faults than is currently contemplated in s. 290 of the Local Government Act. Section 290 currently limited the responsibility of certified professionals to plan review which is directly related and limited to their function and expertise. Additionally, this proposal does not address the need to fairly apportion responsibility across all parties involved in design and construction. Government is focused on addressing the issue of proportionality through system improvements that are intended to result in improved construction and safety outcomes. In this regard, and in addition to the recent amendments to the Limitation Act to reduce the ultimate limitation period, the Office of Housing and Construction Standards is continuing to work with industry and local governments to address issues of roles and responsibilities, competencies, minimum qualifications for building officials and residential builders, approval of alternative solutions and a proposed random audit of construction projects to assist in assessing risks. Government encourages UBCM to continue to work with the Province in addressing these important issues.

Convention Decision
Endorsed