When building multi-unit rental properties in Nova Scotia, clearly defining the roles of owners and builders is essential to avoid delays, budget overruns, and conflicts. A RACI table (Responsible, Accountable, Consulted, Informed) helps assign responsibilities for each task, ensuring smooth collaboration. Here's a quick breakdown:
- Owners: Handle financing, land purchase, permits, utility connections, and final approvals. Active involvement during construction is key for decisions like change orders and progress payments.
- Builders: Oversee construction, manage subcontractors, ensure compliance with codes, and handle post-completion warranties and inspections.
- Collaboration: Regular communication and clear role definitions prevent gaps, reduce costs, and keep timelines on track.
A RACI table ensures accountability and clarity, minimizing confusion and disputes throughout the project.
What is an Owner-Builder and What are the Responsibilities and Limitations that Come with it?
Owner Responsibilities in Multi-Unit Construction
Property owners play a pivotal role in the success of multi-unit construction projects, from initial planning to final completion. In Nova Scotia, this involves managing specific legal, financial, and administrative responsibilities that cannot be delegated, ensuring smooth collaboration with the builder.
Pre-Construction Tasks for Owners
Before construction begins, owners must address several critical steps to set the stage for the project.
Land acquisition and site preparation
Owners are responsible for purchasing suitable land, conducting soil tests, and ensuring the property complies with municipal zoning bylaws and density regulations. These steps are essential to confirm the site is ready for development.
Construction financing
Securing financing is another key task. Owners must arrange funds to cover both the land purchase and construction costs. For example, a four-unit project in Nova Scotia typically costs around $640,000, with an average of $160,000 per unit.
Utility connections and municipal services
Owners must coordinate with local utility providers to arrange services such as electrical upgrades, water and sewer connections, and natural gas hookups (if available). In Halifax Regional Municipality, for instance, sewer and water connections through Halifax Water can take 4–6 weeks to process, requiring early planning.
Construction insurance
Before construction funds can be released, most lenders require proof of insurance. Owners must secure coverage to protect against risks like damage, theft, and liability throughout the project.
Legal Requirements and Documentation
Nova Scotia's Builders' Lien Act mandates that owners hold back 10% of each progress payment for 45 days after substantial completion. This reserve protects against potential lien claims from subcontractors or suppliers.
Permits and inspections
While builders often handle permit applications, owners remain responsible for ensuring all required permits - such as building, development, and occupancy permits - are obtained. Since these documents list the owner’s name, compliance ultimately falls on them.
Financial record-keeping
Owners must maintain detailed records of payments, change orders, and additional costs. These records are crucial for tax filings, insurance claims, and resolving warranty issues that may arise later.
Final inspections and occupancy certificates
Before tenants can move in, owners must conduct a thorough walkthrough of the completed units, ensuring all work meets the agreed specifications. Signing off on final completion transfers responsibility from the builder to the owner, including ongoing maintenance and tenant management.
Owner Duties During Construction
Active involvement during construction helps ensure the project stays on track and meets expectations.
Change order approval
Owners must quickly review and approve change orders to avoid delays that could impact timelines and budgets.
Progress payment management
Payments are typically tied to key milestones, such as foundation completion, framing, mechanical rough-ins, and final completion. Owners must verify that work has been completed to specifications before releasing funds.
Regular communication with the builder
Frequent updates, progress meetings, and timely decision-making are essential to keep the project running smoothly. This collaboration helps address issues before they escalate.
Fixture and finish selections
Owners need to finalise choices for items like flooring, paint colours, and appliances by the deadlines provided by the builder. Delays in these decisions can disrupt schedules and increase costs.
Quality control participation
At key construction phases, owners should conduct walkthroughs to inspect progress and flag any concerns. While the builder is primarily responsible for quality, owner involvement ensures the final product aligns with expectations.
Tenant preparation
As construction nears completion, owners should develop rental applications, tenant screening processes, and lease agreements to secure occupancy as quickly as possible.
Builder Responsibilities in Multi-Unit Construction
Under the RACI framework, builders take on specific responsibilities after construction that work alongside the duties of the owner. They handle the technical and operational aspects of delivering multi-unit projects that meet both regulatory requirements and the owner's expectations. Once construction is complete, builders focus on ensuring compliance and resolving any issues that arise.
Post-Construction Builder Duties
After the design and construction phases, builders play a crucial role in setting the stage for the project's long-term success.
Final Inspections and Walkthroughs
Builders conduct a final inspection with the architect to ensure everything aligns with the project's specifications and building codes. Any items on the punch list are addressed immediately. They also secure a Certificate of Substantial Completion and, following municipal approval, obtain a Certificate of Occupancy [1]. A final walkthrough with the owner is then carried out to identify and resolve any last-minute touch-ups [2].
Warranty Responsibilities
Builders are responsible for honouring warranties related to construction defects and workmanship. They address claims quickly and, if needed, coordinate the required repairs [1].
Resolving Post-Completion Issues
Beyond warranties, builders handle minor deficiencies that may arise after occupancy, ensuring the building remains functional and up to standard.
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RACI Table: Who Does What in Construction
When it comes to construction, having clearly defined roles is not just helpful - it’s essential. The RACI matrix is a tool that assigns responsibility and accountability for every task, ensuring there’s no confusion about who’s in charge. Without this clarity, projects can quickly run into delays and extra costs. In fact, a McKinsey study found that managers waste 37% of their decision-making time due to unclear roles [3]. In construction, this often translates to missed deadlines and ballooning budgets when owners and builders aren’t on the same page about their responsibilities.
Companies that clearly define roles and accountability are over three times more likely to achieve top-tier organizational health [3]. For construction projects, this means finishing on time, staying within budget, and meeting quality expectations. The RACI framework takes the earlier discussion on role clarity and turns it into a practical tool for managing day-to-day operations.
Construction Tasks and Role Definitions
For complex multi-unit projects, the RACI matrix becomes even more critical. Unlike single-family home builds, these projects require coordination between a wide range of professionals - architects, engineers, and municipal officials, to name a few. Without clearly assigned roles, property owners can find themselves caught between conflicting advice from experts.
"The RACI matrix is a simple yet powerful tool designed to bring clarity, accountability, and efficiency to construction projects." - TeamGantt [3]
To avoid confusion, involve all stakeholders early on when creating the RACI matrix. This proactive step can prevent the blame game that often arises when something goes wrong. For example, property owners who skip this step might later discover that no one was assigned critical tasks like utility connections or final inspections. Regularly revisiting the matrix ensures it stays relevant through the planning and execution phases.
Complete RACI Table for Nova Scotia Multi-Unit Projects
For multi-unit construction projects in Nova Scotia, here’s how responsibilities break down:
| Construction Task | Owner | Builder | Architect/Engineer | Municipality |
|---|---|---|---|---|
| Land Purchase & Due Diligence | R, A | C | C | I |
| Site Survey & Soil Testing | A | R | C | I |
| Architectural Design | C, I | A | R | I |
| Engineering (Structural/Mechanical) | I | A | R | I |
| Building Permit Application | I | R, A | C | R |
| Development Permit | C, I | R, A | C | R |
| Construction Financing | R, A | C | I | I |
| Site Preparation & Excavation | I | R, A | C | I |
| Foundation Work | I | R, A | C | C |
| Framing & Structure | I | R, A | C | C |
| Electrical Rough-In | I | R, A | I | C |
| Plumbing Rough-In | I | R, A | I | C |
| HVAC Installation | I | R, A | C | C |
| Insulation & Vapour Barrier | I | R, A | C | C |
| Drywall & Interior Finishes | C, I | R, A | I | I |
| Exterior Finishes | C, I | R, A | I | I |
| Final Inspections | I | A | C | R |
| Certificate of Occupancy | I | R | I | A |
| Utility Connections | A | R | C | C |
| Landscaping & Site Completion | A | R | I | I |
| Final Walkthrough | C, A | R | I | I |
| Warranty Claims | A | R | C | I |
This table is a game-changer for avoiding the confusion that often derails projects. For instance, property owners sometimes assume a passive role, thinking they only need to be "Informed" about progress. In reality, they are still Accountable for financing, utility payments, and final approvals. Meanwhile, builders handle the day-to-day Responsible tasks but rely on timely decisions from the owner to keep things moving.
"RACIs are a great way to help keep your project team and stakeholders accountable to what they should be doing." - Molly Beran, President and Founder of Projects by Molly, LLC [4]
Regularly updating the RACI matrix is crucial as the project progresses. Municipal requirements might change, weather delays could arise, or design adjustments may be needed. Keeping communication open and roles updated ensures no one is left scrambling.
Clear role definitions can prevent the chaos that often results in budget overruns of 30–60% or project timelines stretching from 8 months to over 18 months. When everyone knows their responsibilities, the project moves forward steadily rather than lurching from one crisis to the next.
Single-Source vs Multiple-Contractor Construction
Traditionally, construction projects involve managing several contracts - one for the architect, another for the engineer, and yet another for the general contractor. This fragmented system often leads to miscommunication and costly mistakes. On the other hand, single-source construction combines all these services into one contract, simplifying project management and reducing risks. This setup is particularly relevant in the current climate, where the demand for efficient construction is growing rapidly.
In Nova Scotia, housing starts have risen 38% year over year as of 2025. However, the Canadian Mortgage and Housing Corporation stresses that the province must double its housing starts to return to pre-COVID affordability levels. This makes streamlined construction methods more critical than ever [5].
Challenges with Multiple-Contractor Construction
The conventional design-bid-build approach often creates conflicts among the parties involved. For instance, an architect might design something that increases construction costs, leaving the property owner stuck in the middle of competing priorities. Each contractor focuses on their specific role, rather than the overall success of the project.
Poor communication between contractors can lead to significant delays and unexpected change orders. Imagine this: the engineer makes a structural change, but the architect doesn’t update the design in time, and the contractor only discovers the issue after construction begins. Meanwhile, you’re left footing the bill for these delays and disputes.
Cost overruns are another frequent problem, with expenses exceeding initial estimates by 30–60% in many cases. Since no single party is responsible for the entire project, each contractor can blame others for budget increases, leaving property owners with unexpected expenses.
Timelines can also spiral out of control. A project that should take 8 months might stretch to 18 months due to poor coordination. For example, the electrical contractor might arrive on-site only to find the framing isn’t ready because the structural engineer required more time to approve a change.
Advantages of Integrated Design-Build Construction
Single-source construction tackles these issues head-on by uniting all professionals - architects, engineers, and contractors - under one contract. This approach ensures that everyone is working toward the same goal: delivering a successful project.
"Single-source responsibility drives accountability throughout design-build construction. One team manages cost, quality, and the schedule throughout the entire project." - Steve Savoie, Principal Architect - Design Leader, Performance Services [6]
With a single-source contract, you’ll receive a guaranteed maximum price before construction begins. This eliminates the budget uncertainty that often plagues traditional methods. Additionally, design-build projects are completed 13% faster than conventional approaches and experience 2.4% less cost growth compared to construction manager-at-risk projects [6]. This efficiency is achieved by overlapping the design and construction phases instead of separating them.
The collaborative nature of the design-build process also leads to smarter, more efficient solutions. When architects and contractors collaborate from the outset, they can create designs that are practical and cost-effective, avoiding the common pitfall of beautiful but overly expensive plans.
"With single-source responsibility, the design-build team works together to resolve any issues that arise, which can lead to faster and more cost-effective resolutions." - Technical Assurance [7]
Comparing Multiple Contractors to Single-Source Construction
The differences between these two approaches are stark when you look at project outcomes. Design-build projects are delivered 61% faster and cost 1.9% less per square foot on average compared to traditional methods [8].
| Project Aspect | Multiple Contractors | Single-Source Construction |
|---|---|---|
| Accountability | Shared across multiple parties | Single point of responsibility |
| Communication | Complex multi-party coordination | Internal team collaboration |
| Cost Control | Individual contractor estimates | Guaranteed maximum price |
| Timeline | Sequential design-then-build | Concurrent phases |
| Problem Resolution | Finger-pointing between parties | Internal team problem-solving |
| Change Orders | Common due to coordination gaps | Minimized through integrated planning |
Nearly half of all non-residential construction spending in the U.S. is expected to use the design-build method by 2026, highlighting its growing popularity [6].
"Design-build continues to deliver innovative projects that save time and money." - Lisa Washington, CAE, DBIA Executive Director/CEO [8]
For property owners, especially those developing multi-unit rental properties, single-source construction offers much-needed clarity. Knowing the exact costs and timelines upfront allows for more accurate financial planning, including financing and rental income projections. This approach also simplifies the owner’s role, as they only need to work with one team aligned around the project’s success.
How to Work Successfully with Your Builder
To ensure a smooth construction process, it’s essential to set clear expectations with your builder before the project begins. A study by the Office of the Procurement Ombud highlights that poor planning and vague scope definitions are major contributors to change orders and disputes in construction contracts [9]. This underscores the importance of clearly outlining project goals, timelines, and budgets upfront.
"A well-defined scope is needed to reduce issues." - Office of the Procurement Ombud [9]
Keep a record of all conversations, decisions, and changes throughout the project. This documentation can be a lifesaver if any disputes or questions arise later. Regular check-ins with your builder are equally important, as they allow you to monitor progress and address concerns before they escalate.
Using a RACI table to define task responsibilities can significantly improve communication. When both parties know exactly who is accountable for each task, it eliminates confusion and ensures smoother collaboration.
Choosing a builder with single-point accountability can further simplify your project. For example, in April 2025, Helio Urban Development adopted an integrated design-build approach for rental properties in Nova Scotia. They provided a fixed price of $160,000 per unit and guaranteed project completion within six months. This approach removed the hassle of coordinating multiple contractors, offering predictable costs and a more streamlined process.
"By assuming this comprehensive role, the builder acts as a single point of contact for the owners, streamlining communication and ensuring a seamless construction process." - Tybrdo Steel Buildings Inc.
Opting for fixed-price contracts can also provide financial peace of mind. With the total cost guaranteed upfront, you can confidently arrange financing and avoid the budget overruns that often range between 30% and 60% in traditional construction projects.
Assess your builder’s communication practices and project management tools. Builders who offer daily photo updates or maintain transparent project portals show their commitment to keeping you informed. This level of transparency helps you identify potential issues early and fosters trust throughout the process.
Be aware of local regulations like Nova Scotia's Builders' Lien Act, which allows contractors and suppliers to place a lien on your property if payments are delayed. This can affect your ability to sell or mortgage the property [10]. Timely payments and open communication are crucial to protecting your investment and maintaining a positive relationship with your builder.
Finally, approach your builder as a collaborative partner rather than just a service provider. When both sides clearly understand their roles and work toward a shared goal, your construction project becomes a team effort. Combining this partnership approach with tools like the RACI framework ensures a more efficient and successful outcome.
FAQs
How does a RACI table help prevent misunderstandings between property owners and builders during multi-unit construction projects in Nova Scotia?
A RACI table is an effective way to define the roles and responsibilities of property owners and builders in multi-unit construction projects. By categorizing tasks under Responsible, Accountable, Consulted, and Informed, it eliminates uncertainty and ensures everyone involved understands their part in the process.
This structured approach enhances communication, prevents tasks from being overlooked or duplicated, and minimizes potential disputes by setting clear expectations from the outset. Using a RACI table allows property owners and builders to collaborate more effectively, streamlining the construction process and helping to avoid unnecessary delays.
What are the benefits of using a single-source contractor for building multi-unit rental properties in Nova Scotia?
Choosing a single-source contractor for your multi-unit rental property project can make a world of difference compared to managing multiple contractors. With this approach, one team takes charge of everything - from design to construction - offering centralized coordination. This means you don’t have to juggle various subcontractors, making communication much smoother and more straightforward.
Another big plus? Cost control and time management improve significantly. The contractor is responsible for staying within the budget and sticking to the timeline, which helps you avoid unexpected delays and surprise expenses. On top of that, the project’s quality is more consistent since the same team oversees every stage, ensuring the standards remain steady throughout.
In short, a single-source contractor takes much of the stress off your plate. You can focus on other priorities, knowing that your project is being handled professionally and efficiently.
What are the key responsibilities of property owners during the construction phase to keep the project on schedule and within budget?
Property owners have a significant part to play in keeping their construction projects on track. Their main duties involve making timely decisions about design details, approving budgets and timelines, and ensuring all necessary payments, like utility connection fees and land-related expenses, are completed without delay. It's also important for owners to keep the lines of communication open with their builder, so any questions or concerns can be addressed quickly.
By staying actively involved and well-informed, property owners can help avoid setbacks, keep costs under control, and build a strong, cooperative relationship with their builder.
Related Blog Posts
- Common Design Mistakes to Avoid in Custom Home Projects (Nova Scotia Edition)
- Construction Inspections in Nova Scotia: Stages, Pass Criteria, and Owner Prep
- Avoiding Construction Delays in Nova Scotia: The Owner’s Critical Path Checklist
- New Home Warranty Coverage in Nova Scotia: What’s Covered and For How Long
