In 2011, The Renovation Co-op developed a series of Discount & Rebate Programs that have been designed to help maintain competitive pricing for our member-Contractors and Architects.
Note: All Discount & Rebate programs offered through The Renovation Co-op (including the Subsidy Discount Fund) are fully managed and administrated by The Canadian Renovation Funding Program. see Funding Program.
The most significant of these discount & rebate programs is The Subsidy Discount Program, which is directly supported by a percentage of The Co-op’s revenue from monthly professional membership & administrative fees, along with additional contributions and support from various sectors of the construction and financial service industries across Canada.
How the Subsidy Discount Program works…
Each month, a limited amount of Subsidy Funds is set aside and placed into a special Trust Account. Throughout the month, portions of these funds are utilized as “mini-grants” which are credited towards the contract price of selected projects on a case-by-case basis.
The amount of the “grant” approved for each subsidy request is carefully determined, using a series of protocols related to the project itself, such as the type and scope of the work, the competitive nature of the type of job, geography, etc.
Funding managers maintain a vigilant watch on the availability of these funds throughout the month, in order to accommodate individual funding requests in a fair and balanced manner.
The member-contractor signs the contract with the homeowner for the final discounted price and is later reimbursed, or subsidized directly by the fund for the same, approved amount.
The benefits to both the client and the member-contractor are:
1- The client is only responsible to the member-contractor for the final, discounted contract price.
2- The contractor-member is quickly credited (compensated, or “subsidized”) with the same, discounted amount.
Note: This enables our member-contractors to maintain their existing, high standard of labour and materials, while still offering discounted pricing that they themselves do not have to pay for.
In the following example, the lowest bid price, or Best Co-op Price is $26,500. The Subsidy amount made available for this specific project is $1,750. (For details regarding the Best Co-op Price, view The Renovation Co-op’s Estimating Procedures).
The final, discounted price agreed to in the example above is $24,750.
However, the contractor is later reimbursed (or subsidized) for the $1,750 by the Subsidy Program.
Subsidy Withdrawal Policy:
Upon completion of the Estimate Review conducted by a Co-op Client Service Rep, any subsidy funds that are offered as part of your estimate will be removed 5 Business Days following the review date (see Standard Estimating Procedures)
Reason: When a member-contractor signs the final agreement with the client, the final price is reduced by the Subsidy amount.(As displayed in the sample)
The approved Subsidy amount is segregated and placed on “hold” for the 5 business days, pending a deposit or contract signature.
By setting a reasonable, mandatory subsidy withdrawal date, and with no deposit or contract signed by then, the funds are then “freed up” and placed back into the main Subsidy Fund, so that they can be used towards another project.
Supporting our Member-Services…
The Co-op’s subsidies & rebates enable our members to offer substantially discounted pricing to clients, without having to lower their own fees.
By having all discounts paid for by the Co-op’s Subsidy & Rebate Programs, our member-contractors and architectural specialists are able to maintain their same high standards of service and materials, without having to “cut corners”.
All subsidies and available rebates are automatically applied for on behalf of the project, following the completion of the bidding process. see The Co-op’s Estimating Procedures.
Regardless of the size and/or scope of the project, The Co-op’s Subsidy & Rebate programs increase the client’s ability to pay for renovations and/or architectural services, while still maintaining a high level of professional service.
In 2008, The Canadian Renovation Funding Program was established to supervise The Renovation Co-op’s complex system of Subsidies, Rebates and Loan Programs.
The program consists of a professional team of retired and semi-retired financial specialists, each having served in various areas of the Financial Services Industry, including Residential/Commercial Mortgage Financing, Investment Banking, Private Lending and Fiduciary Management.
The Funding Program has two major functions:
Subsidy Fund Management:
* Provides the approval, development, management and administration of all Subsidy and Rebate Programs on behalf of The Renovation Co-op, including all Renovation Credit Accounts. (See Subsidy & Rebate Programs)
Free Loan Advisory Service:
* Provides each client with a personalized recommendation to a specific, Co-op-Approved Mortgage Broker (when requested by the client only).
* Provides current information regarding Affordable Housing Developmental Loan Programs offered by Federal, Provincial and/or local City Governments).
The Renovation Funding Program maintains a watchful eye over the availability of all subsidy and rebate funds, ensuring a fair balance of cash distribution for all projects throughout the month. The amount of funds for each individual project is approved on a discretionary basis, and is determined by the program’s Fund Managers on a daily basis.
Note: None of the Renovation Co-op’s incentive programs have been put in place for the purpose of becoming built-in, “hidden costs” to the client. In fact, the existence of these programs is one of the primary reasons why The Renovation Co-op is able to attract more “seasoned” and professional service providers from within the construction industry.
All subsidy and other incentive funds are collected from outside sources, including a percentage of monthly membership fees, along with contributions from within the construction sector and other related industries.