Underdogs: Biting Bad Customer Service in the Rear

A couple of days ago I was watching CBC's Marketplace (must be re-run season...) They have a series called Underdogs where they follow some Canadians as they fight companies over the crappy products and services they have been sold. While that part was okay, particularily watching managers squirm on camera the part that interested me more was a couple of the consumer relations experts they interviewed.

One of their experts, Lior Arussy, a customer relationship expert, says companies used to thrive on a customer service tactic that dealt with each consumer as an exception from the rule. Every customer with a complaint was told they were an anomaly – that no one else had ever encountered their problem.

Arussy says the internet blows the old “divide and conquer” tactic out of the water. “When consumers start seeing that this is a recurring pattern, that this is something that is happening to other customers and they get together via the web or other ways. Then the power starts.”On the web, a customer’s complaint gets seen and heard all over the world in seconds. And the record of that complaint is permanent.

Mr. Arussy, welcome to a proof of concept for that statement - Leaky Homes by Avi!

Marketplace's other expert, Lindsay Meredith says companies had better watch out because their indifference is breeding a new generation of underdog consumers who could turn out to be pretty rabid when it comes to getting the service they think they deserve.

"Should consumers be smarter, less naïve? You betcha they should and they’re getting that way by the second," he says. "The problem is you’re going to produce a whole generation of very hard-nosed, very foxy, very cynical, very vengeful and very litigious consumers. Is that the kind of marketplace you want to operate in as a corporation? Keep it up, boys, ‘cause you’re well on that path."

After reading that, I did send Marketplace my story. They did reply back, "Hello Craig, Thanks for your message. I'll pass your story along to our producers for consideration for a future show. Someone may contact you for more information." Who knows, maybe there will be some TV Cameras showing up at Homes by Avi, well besides this "targeted stories from your corporate message" hunk of marketing:

The Winner's Circle, with Terry Bradshaw. [16mb Windows Media File]

There is a fun continuity error in the video though, watch Homes by Avi Vice President Darren Soltes earring, it keeps changing sides...

UPDATE: The Ian Mosher "Couple of Days" timer is currently at: 13 Business Days.

The HUGE $2,500 Deterrent

Thomas D. Marriott of Brownlee LLP, gave a presentation entitled "Emerging Legal Trends Recent Case Law" on June 10 at Alberta Safety Codes Council's Summit 2006 Conference held in Banff. In it (on page 18 if you are following along in the pdf...) he discussed a 2005 case; R. v. Pacer Signature Homes Inc. The facts of the case as Mr. Marriott listed are:

• Formal warnings regarding stucco coating material used on residential homes.
• On April 6, 2004 two orders were listed under the Safety Codes Act.
• Pacer failed to meet the deadlines for compliance, and was charged with non-compliance on Nov. 18, 2004
• Pacer did not obtain a satisfactory expert report that the intent of the code was met until Oct. 3, 2005

So, these guys ignored a non-compliance order for 18 months! They pled guilty to the charges. Pacer Homes Inc was then fined for not applying the stucco to code, ignoring deadlines, ignoring two orders for 18 months, ignoring two charges of non-compliance for 10 1/2 months, and having the penalty increased for "Aggravating factors" for a grand total of $2,500 per offence ($5,000 total). Come on, you have got to be kidding me.

Lets put a little perspective around this, did you know that in the City of Calgary the fine for Grafitti is a minimum of $2,500?

In his presentation Mr. Marriott listed that Pacer's defence was that "no one was hurt, it was a victimless crime", and that the offence was "a function of tardiness alone". Um, by "victimless crime" I guess they forgot the part about unnecessarily increasing the risk to the home buyers of mould (toxic and non-toxic), not to mention the stress that is caused by having to fight housing companies that choose to ignore customers, rules, regulations, Building Codes, legal contracts, etc. and the deterrent is a big, fat $2,500 hit in the pocketbook. Yea, that's going to stop them!

If you have read this, and are as upset as I am, go ahead and drop Mr. John Hillary an email, he's the Executive Director of the Alberta Safety Codes Council. You can find his email (and others) on the Alberta Safety Codes Council website under "Who to Contact".

UPDATE: The Ian Mosher "Couple of Days" timer is currently at: 11 Business Days.

How many days in "a couple of days"?

When Ian Mosher from Homes by Avi met with me on June 9th, he told my wife and I he would get back to us in a couple of days.

I don't know about you, but to me a "couple of days" means 2 or 3 days. I asked around the office and most people thought the same as me, although, one did say 3 or 4 days.

Its now 10 full business days, which to me is more like a "couple of weeks" and I have not heard back. Just in case he forgot I have left Mr. Mosher two messages. I also asked him to give me a call as soon as he could - complete with office and home phone numbers. I also checked with the receptionist, to make sure a vacation or family emergency did no impair his ability to call back, but he is not on holidays or out of the office.

I guess that means he is too busy to deal with trivial issues like Building Code Violations, or worse, he is call-screening me...

2003 Morrison Hershfield Report

Assessing the Impact of Thickness on the Performance of Stucco Cladding

William C. Brown, P.Eng., Mike Dietrich, P.Eng., Mark Latimer

This is an interesting technical paper done by Morrison Hershfield Ltd. They were retained by the Alberta Housing Industry Technical Committee (AHITC) to develop a professional opinion on whether 15 mm, two-coat stucco cladding would provide performance equivalent to that of code-compliant three-coat stucco. The field study however, unexpectedly identified quality-control concerns with the installation of stucco cladding.

This report caused the AHITC to withdraw their request to have the Alberta Building Code changed.

Lets check out some of the highlights (lowlights) of the 13 page document. (If you would like a copy, it can be obtained at the Morrison Hershfield website ):

• The field investigation of stucco cladding in Alberta found that 85% of the applications were thinner than the current Building Code.
• 57% of the stucco applications were thinner than the proposed thickness of 15 mm;
• More than half of the two-coat stucco applications surveyed would require maintenance or repair within five years to maintain functionality.
• Repairs were rarely observed. However, those that were observed were typically unsuccessful as the cause of the damage, usually excessive wetting, had rarely been addressed.

As a result of the study, Morrison Hershfield recommended that a quality-control program be established to address design, workmanship and materials issues related to stucco cladding. In the postscript is an excerpt from the Alberta Home Builders Association which states that "AHITC started work on an action plan to improve building envelope workmanship in Alberta"

So they worked for two years and came up with: The Stucco Toolkit!

Hi, I'm not in, please leave a message...

The last communications I had with Homes by Avi was on Friday June 9th, at that time Ian Mosher, said he would get back to me "in a couple of days". Its now been 7 full business days, and I have politely waited, but nothing has been forthcoming. After checking the mailbox today and finding nothing, I left a message for Mr. Mosher on his voicemail. I just mentioned that I was inquiring as to when I will be receiving Homes by Avi's remediation plan for my house.

One week and counting.

When Homes by Avi visited my house on Friday, June 9th, Ian Mosher indicated he would get back to me within a couple of days with their "plan" for my house. Its been a week already, but I haven't heard back. I'll give them a bit more time before I start calling.

One thing that bothered me during the meeting was that Ian Mosher was quite insistant that there was no data to say that stucco thickness causes issues. His statements kind of bothered me, so I looked into it for a bit. I came across this in the meeting minutes for the Alberta Safety Codes Council from April 24, 2003. Under AHITC Submission - Proposed Code Changes:

Avi Amir provided background regarding the Final Report of the Stucco Study and reported that, on behalf of the Alberta Housing Industry Technical Council, it is believed that it is inappropriate to bring forward any proposed code changes regarding stucco thickness at this time. The Alberta Housing Industry Technical Council has prepared an action plan to address workmanship issues.

So while Ian Mosher doesn't think there is really an issue with stucco thickness, his boss, Avi Amir feels it is "innappropriate" to press for the Alberta Building Code to be changed to allow for 15mm of stucco thickness. Even though this would reduce building costs, and of course, builder profits.

Homes by Avi shows up...

An hour and half late (apparently truck problems).

Ian Mosher from Homes by Avi did show up on Friday June 9th. He brought along Gary Shmold the Customer service guy. I am not really happy when one person arranges a meeting, but two show up, but anyways.

According to Mr. Mosher, "We are going to need to do some repairs". He also stated that there were "some code issues". Um, yea there are a few more than "some", I think "a lot" is probably more accurate. Mr. Mosher also viewed the windows that had had water leakage, asked about the Building Inspectors report we had done. Then he and Mr. Schmold looked around the outside of the house.

He asked what we were looking to have Homes by Avi do, I said take all the stucco down, the wire mesh down, and the building wrap off and start all over again. Pretty much exactly what I had stated in my letter under remediation steps.

He also stated he would get back to me in a few days with Homes by Avi's plan to repair my house. I have a feeling its going to be some kind of band-aid solution. But, that won't be acceptable to me, and I will keep pushing for everything to come down, as that is the only way to ensure that there has been no water intrusion.

I am really looking forward to their next letter...

Words of advice from Inspector12

Inspector12 who runs www.NewHomeBuildersNewsBlog.com sent me a note, with some great advice that I intend to follow:

Craig,
When you do attend the mentioned meeting be sure to: take copious notes, don't be afraid to ask point blank questions (don't accept generalized - everything, everyone, is this way) - answers to your questions, don't be sidetracked by irrelevant and minor points that you can see they will easily cede to you in an attempt to draw you away from the major problems and complaints you intend for them to address, and remember above all else; no-one at this meeting has your interests in mind except yourself no matter how loudly the builders and it's representatives claim to the contrary. Never give-up! All builders intend on wearing you down until you quit; that's money in their pockets'. And know that what you are doing here not only benefits you but will undoubtedly help others in the same predicament. Continue to post and continue to fight the "Good Fight." Good luck!

Think I will need to go get a new note pad and pen for the note taking!!

Official Response in the Mailbox

Wow, I requested a written response from Homes by Avi. Grabbing the letter and tearing open to see what pearls of wisdom I could glean from their response - I promptly found out it didn't really say anything...

"We have received your letter/report dated 19 May 2006. As you provide new information to us concerning your home, we request an opportunity to meet with you and inspect your home at your convenience as soon as possible. I will be calling in the very near future to arrange such a meeting at your home."

So to sum it up: We got your letter, don't call us, we'll call you...

• Official Letter from Homes by Avi

Alberta Building Code - Responsibility for Compliance

So, who is responsible to ensure that the building that is under construction is in compliance with the Alberta Building Code??

Here is the what the Alberta Building Code (1997) has to say about Responsibility:

1.2.1.9. Responsibility for Compliance

1) Neither the issuance of a permit, nor inspections made by the authority having jurisdiction, shall in any way relieve the owner of a building from full responsiblility for carrying out the construction or having the construction carried out in accordance with the requirements of the Safety Codes Act and regulations made pusuant to that Act, this Code, or the permit, including compliance with any special conditions required by the authority having jurisdiction.

2) The owner shall ensure that all activities which take place on the site meet the requirements of this Code.

3) The constructor shall ensure that
a) precautions are taken to safeguard the public and protect adjacent properties
b) the methods used in demolition or erections are safe, and
c) the material and equipment used on site meet the requirements of this Code

4) Every vendor or supplier of materials and things used in the construction of a building shall ensure that the materials and equipment he advertises, displays, sells, leases or otherwise disposes of meet the requirements of this Code.

One more thing...

And just in case there was any confusion whatsoever in the Homes by Avi Management Team as to who needs to remediate the entire building envelope, this little quote is off of the "Purchase Agreement" contract between Homes by Avi Inc. and the homeowners. This quote comes from Section 3, Paragraph (a) which states:

(a) The builder agrees to construct on the land a home built in accordance with the Alberta Uniform Building Code under the Alberta Uniform Building Standards Act in effect at the date of this Agreement, by supplying all of the materials and performing all of the work for the construction