Designated substances survey

A buyer may meet this term in diligence on an older building, an industrial operation or a site it plans to renovate. The Occupational Health and Safety Act does not use the word survey. It speaks of determining which designated substances are present and preparing a list, and the survey is the investigation behind that list.

What Ontario’s law says

Section 30(1) says that before beginning a project, the owner shall determine whether any designated substances are present at the project site and prepare a list of them. A project means a construction project. The Act’s definition of owner includes a tenant, lessee or occupier. An owner who fails to comply is liable to the constructor and every contractor and subcontractor who suffers loss or damages from the later discovery on the project of a designated substance the owner ought reasonably to have known of but that was not on the list. Ontario Regulation 490/09 prescribes the designated substances, including asbestos, lead and silica.

What to ask

• Is there an existing survey or list, who prepared it, and when?
• Does it cover the whole building, including any area you plan to renovate?
• Has any material been removed or disturbed since the survey?

These duties are Ontario’s. For a site in another province, check that province’s workplace safety law. See environmental due diligence in an asset purchase.