A recent asbestos enforcement case involving the operator of Sandman Hotels is drawing attention across Canada, and it is a useful reminder for property owners, contractors and renovation teams closer to home.

Northland Properties Corporation, which operates the Sandman Hotel chain, was fined $624,051.48 by WorkSafeBC following an inspection of a renovation project at the Sandman Hotel and Suites in Williams Lake, British Columbia, in December 2025. The renovation had disturbed asbestos-containing drywall compound and lead-containing paint. WorkSafeBC found that these known hazards had not been communicated to the workers carrying out the renovation, and that only one worker was voluntarily wearing a disposable dust mask.

What makes this case worth reading past the headline number is what a Freedom of Information request later revealed: this was not a one-time lapse. WorkSafeBC’s report shows Northland Properties had been cited for asbestos violations more than a dozen times at Sandman Hotel locations across British Columbia over more than a decade — and, in the regulator’s own words, the company “does not seem to have taken any substantive, sustained action to prevent future worker exposure and future violations.”

Although the incident occurred in British Columbia, the lesson applies just as directly in Ontario. Before renovation, demolition or repair work begins, building owners and contractors need to understand what hazardous materials may be present, and what precautions are required before those materials are disturbed — and that understanding needs to translate into action, not just a report on file.

What Happened at the Sandman Hotel?

A pre-construction report had already identified asbestos throughout the drywall compound at the Williams Lake hotel, along with lead-containing paint. WorkSafeBC found that these risks were not communicated to the employees doing the work.

A WorkSafeBC inspector at the site documented:

• Visible mould on the walls
• Debris on carpets and mouldy insulation
• No decontamination measures in place
• Only one worker voluntarily wearing a disposable dust mask
• No reference to asbestos or hazardous materials anywhere in the company’s own health and safety program for the project

WorkSafeBC’s report was direct about the consequence: “As a result of these deficiencies, anyone accessing the renovation area was likely exposed to asbestos and other hazardous building materials. Cross contamination of the hotel interior was also likely and contaminated debris may have been spread via footwear and contaminated clothing to other areas of the hotel.” The regulator noted that both workers and hotel guests may have been exposed over the course of the months-long renovation.

WorkSafeBC issued a stop-work order at the site. Asbestos abatement work was carried out before renovations resumed, and the fine is reported to be the subject of a review request filed with WorkSafeBC’s Review Division.

Why the Fine Was So Significant

The size of the penalty reflects more than one bad renovation. WorkSafeBC’s report cites prior orders and fines at Sandman Hotel locations in Kelowna, Richmond, Revelstoke, and on Vancouver’s Georgia, Davie and Burrard streets — over a dozen penalties, stop-work orders and safety notices tied to hazardous material exposure across the hotel chain over more than a decade.

The regulator’s own reasoning for the size of the fine is worth reading in full: “This penalty is appropriate for this employer; the employer has received many prior orders relating to asbestos management and also a warning letter and does not seem to have taken any substantive, sustained action to prevent future worker exposure and future violations.”

That is the real lesson of this case. Knowing that asbestos may be present is not enough, and neither is being cited once and moving on. Once hazardous building materials have been identified, that information needs to actually shape how renovation, repair and demolition work is planned and carried out, every time — not just on paper, and not just after the first order. A hazardous materials report sitting in a filing cabinet does not protect anyone. The findings need to reach the people doing the work, and the appropriate control measures need to be in place before potentially hazardous materials are disturbed.

Could Something Similar Happen in Ontario?

Ontario has its own occupational health and safety legislation and asbestos requirements. Ontario Regulation 278/05, Designated Substance – Asbestos on Construction Projects and in Buildings and Repair Operations, governs asbestos in many construction, repair, alteration, maintenance and demolition situations. It applies to construction projects and to building repair, alteration and maintenance where asbestos-containing materials may be present or disturbed.

Among other requirements, the regulation addresses:

• Identifying asbestos-containing materials
• Responsibilities of building owners
• Information that must be provided before certain work begins
• Type 1, Type 2 and Type 3 asbestos operations
• Worker protection procedures
• Respiratory protection
• Training requirements
• Asbestos abatement procedures
• Notifications for certain higher-risk asbestos operations
• Clearance air testing in applicable circumstances

Ontario defines asbestos-containing material under O. Reg. 278/05 as material containing 0.5% or more asbestos by dry weight.

Renovation Is Often Where the Problem Begins

Asbestos-containing building materials generally do not become a renovation problem simply because they exist. The risk increases when those materials are cut, drilled, sanded, broken, removed, demolished or otherwise disturbed.

This is why renovations to older commercial, industrial, institutional and residential buildings require careful planning. A project may look simple at the outset. Remove a wall. Replace flooring. Open a ceiling. Repair water damage. Renovate a hotel room. Replace mechanical equipment. Any of those activities can disturb concealed building materials.

Without appropriate investigation beforehand, workers can unexpectedly encounter asbestos or other designated substances after demolition has already begun. At that point, the consequences can include work stoppages, additional remediation costs, project delays and potential regulatory consequences.

This Is Where a Designated Substance Survey Becomes Important

Before renovation or demolition work begins, owners and contractors should understand what designated substances and hazardous building materials could be affected by the planned scope of work.

A Designated Substance Survey (DSS) can help identify designated substances that may be present within the areas being disturbed. Depending on the building and the project, this could include substances such as:

• Asbestos
• Lead
• Silica
• Mercury
• Arsenic
• Benzene
• Isocyanates
• Other regulated designated substances

Ontario recognizes asbestos as one of the designated substances subject to occupational exposure controls. A properly completed assessment gives project stakeholders the information they need to plan the work safely and determine whether additional controls, testing or asbestos abatement are required.

Don’t Wait Until Demolition Starts

One of the most expensive times to discover asbestos is after contractors are already on site.

A renovation crew has mobilized. Rooms have been emptied. Equipment has arrived. The project schedule has started. Then suspicious material turns up, and work has to stop. Now the owner is dealing with testing, consultants, contractors, abatement, rescheduling and lost productivity all at once.

Identifying hazardous building materials before work begins is a much better position to be in. Environmental assessments should be treated as part of project planning, not as an emergency response after something has already gone wrong.

Property Owners Also Need to Communicate the Findings

The Sandman case highlights another critical issue: communication. Having an assessment completed does little good if the contractors and workers performing the project do not know what was identified.

Ontario’s asbestos regulation specifically contains requirements relating to information for workers and responsibilities for building owners and employers. Environmental reports should become working documents. Relevant information needs to reach:

• Building owners
• Property managers
• Constructors
• General contractors
• Subcontractors
• Restoration companies
• Maintenance personnel
• Workers who may disturb affected materials

Everyone involved in the project should understand what hazards exist within their scope of work.

Restoration Projects Can Present the Same Risk

This issue isn’t limited to planned renovations. Fire and water losses can expose or damage materials that had previously been concealed. A post-fire consulting or restoration contractor entering a property after a loss may need to remove drywall, ceiling systems, flooring, insulation, mechanical components or wall assemblies.

If hazardous building materials are present, restoration work can unintentionally disturb them. That is why environmental assessment and testing can become an important part of loss response before demolition and remediation activities move forward.

The $624,000 Lesson

Most businesses will never expect to receive a six-figure occupational health and safety penalty. But the Sandman Hotel case shows how seriously regulators can treat hazardous material exposure during construction and renovation.

The takeaway is not simply that one company received a large fine. Know what you’re disturbing before you disturb it. Environmental due diligence early in a project can protect workers, reduce uncertainty, prevent unexpected shutdowns and give owners and contractors the information they need to plan appropriately.

Planning a Renovation or Demolition Project in Ontario?

IES Consulting can assist property owners, contractors, restoration companies and other organizations with environmental assessments and hazardous building material concerns before work begins.

Our services include:

• Designated Substance Surveys
• Asbestos sampling and assessment
• Mould assessments
• Indoor air quality investigations
• Post-fire consulting and water-damage assessments
• Hazardous materials consulting
• Remediation scopes and consulting

Whether you are planning renovations, responding to property damage or simply need to understand what hazards may be present in a building, getting the right information before work begins can prevent much larger problems later.

Contact IES Consulting before demolition or renovation begins to discuss the environmental requirements for your project.

This article is provided for general informational purposes and is not legal advice. Requirements vary depending on the project and circumstances. Consult the applicable legislation and qualified professionals regarding your specific project.

IES Consulting Head Office 21027 Charing Cross Rd. P.O. Box 50 Charing Cross, ON N0P 1G0

E-mail: info@iesconsulting.ca Phone: 519.256.8388