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Old 04-20-2019, 09:26 PM   #1
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Default RBO - Defect Ratio

Not sure how many of you guys in Ontario got this. but going through my older emails and found this from a couple of weeks ago.

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March 25, 2019

In early 2020, ESA will move to a risk-based approach called Risk-based Oversight (RBO) for electrical wiring. This means ESA will visit low-risk electrical wiring work less often than medium or high-risk work. Medium and low-risk work will be subject to selective inspection. For example, for every five notifications considered low-risk, an ESA Inspector will visit one notification, and for every two medium-risk notifications, an ESA Inspector will visit one notification.

To determine these risk levels, ESA assesses electrical wiring work using nine “attributes.” These attributes consider who does the work, what the work is and where the work takes place. One of these nine attributes is a contractor’s defect ratio.

What is a defect ratio?

A defect ratio is calculated using the formula below:

Number of site(s) with defect(s)* / Number of site(s) visited = % Defect Ratio

*1 technical defect = 1 defect
5 warning defects = 1 defect

Example: ESA visits 10 sites of which two sites had at least one defect

2 sites with defects / 10 sites visited = 20% Defect Ratio

What types of defects are included?

Technical defects and warning defects are included but weighted differently. An ESA Inspector writes a technical defect when an electrical installation does not comply with the Ontario Electrical Safety Code (OESC). An ESA Inspector writes a warning defect when the electrical installation does not comply with the OESC and the likelihood of shock, fire and exposure is low. Five warning defects are equal to one defect.

How does my defect ratio affect my business?

In 2020, a higher defect ratio could increase the likelihood that electrical work is medium or high-risk and ESA could visit you more often. One of the benefits of maintaining a low defect ratio is that ESA could visit you less often - so you can spend more time running your business and less time waiting for ESA to visit your site. In 2020, if you have a low defect ratio with a minimum of 10 notifications, you will be eligible to enjoy benefits such as emergency or pre-authorized service reconnections from ESA. For example, if you apply for a minimum of 10 notifications and have a defect ratio less than 10%, and ESA has visited five of your service upgrade sites within 12 months, you will be eligible for pre-authorized reconnection or emergency connections without a site visit.

Why is ESA sending me my defect ratio now?

In 2020, ESA wants you to be able to enjoy selective inspection and benefits such as pre-authorized reconnections. This year, we are sending all contractors their defect ratios every three months, so that those with higher defect ratios have a chance to reduce them before RBO goes live. When RBO goes live, you will receive regular updates and can view your defect ratio online.

My business participates in the Authorized Contractor Program (ACP) – how does this affect my business?

If you are currently on ACP, please continue to follow ACP requirements and defect ratio calculations until RBO replaces ACP in 2020. ESA will support ACP contractors through this transition and provide more details shortly via the ACP Newsletter.

Where can I get more information about RBO? ESA has videos, presentations and other resources available at www.esasafe.com/rbo. You can also email us at [email protected].
For those that don't know, an ACP contractor must maintain a 4% or less defect ratio. Under the new program I am not sure they are going to determine "high" verses "low" defect ratio.

Cheers
John
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Old 04-20-2019, 09:33 PM   #2
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So what happens if you ask for a red sticker to prove a point with a know-it-all customer or GC?
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Old 04-20-2019, 09:44 PM   #3
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They spoke about this in a recent code update class. The way it is now, only ACP contractors have the opportunity of haveing small jobs or jobs they commonly do passed without a visit from the inspector. With this new system, all contractors will have that opportunity depending on their defect ratio and the scope of the job.
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Old 04-20-2019, 11:11 PM   #4
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Originally Posted by 99cents View Post
So what happens if you ask for a red sticker to prove a point with a know-it-all customer or GC?
The same that always has happened, the LEC gets the hit. That is why I have commented in many threads about the lack of "stick and carrot" that is available for the typical LEC here in Ontario.

I cannot go into a job with the client and say "lets see if they will pass it", because if I get the hit it goes on the company record; the client just shrugs their shoulders with a "it was worth a try"; but not really. It is not like the hit even goes to the person that did the work (say you had 10 JP working)... the company takes the hit.

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John
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Old 04-20-2019, 11:15 PM   #5
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Originally Posted by Incognito View Post
They spoke about this in a recent code update class. The way it is now, only ACP contractors have the opportunity of haveing small jobs or jobs they commonly do passed without a visit from the inspector. With this new system, all contractors will have that opportunity depending on their defect ratio and the scope of the job.
Yes they have been talking about RBO for a number of years now actually - some like it, some don't. The LECs that are ACP are vocal about it because they will not be getting the special treatment any longer. I prefer to have the inspector inspect 100% of my stuff; I use it as a selling feature with the clients... "a third party that is independant from my business will inspect my work and make sure it is safe by meeting or exceeding the electrical code"; clients like that.

Cheers
John
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