Construction Economist

The Journal of the Canadian Institute of Quantity Surveyors

Le Journal de l’Institut canadien des économistes en construction

TSUNAMI?

Call for Articles

You are invited to submit articles for consideration to the editorial team of the Construction Economist. We are particularly interested in knowledge share and thought leadership, with a focus on innovation and sustainability. CIQS continues to work in elevating the profession of quantity surveying and estimating, in a manner that seeks to make these careers of choice. We welcome members and readers of this journal to contribute their subject matter knowledge as the Construction Economist continues to

Call for Articles Holidays Holidays

The ciqs office will be closed for the holidays from december 23, 2024 until january 5, 2025

To promote the professional status of Institute members by establishing and maintaining high standards and ethics, and fostering excellence through education and the interchange of knowledge and partnership with industry stakeholders.

Canadian Institute of Quantity Surveyors (CIQS)

Thornhill, ON L3T 7M8 info@ciqs.org

CIQS EDITORIAL TEAM

Chief Executive Officer

Sheila Lennon, CAE ceo@ciqs.org

Managing Editor

Arif Ghaffur, PQS(F) editor@ciqs.org

Assistant Editors

Kelsey Wright

Member Services Coordinator memberservices@ciqs.org

Ajibola Soboyejo, PQS

Karen Cheung, PQS

Shane McKernan, PQS

CIQS BOARD OF DIRECTORS

Chair Tammy Stockley, PQS(F)

Past Chair Arif Ghaffur, PQS(F) Directors

Ajibola Soboyejo, PQS

David Dooks, PQS(F)

Sean Hollywood, PQS

Ibrahim Oladapo, PQS

Kerry Mohur, PQS

Marc Brown, PQS

Mykola Pulnyev, PQS

Observer, YQS Brandon Roy, CEC

Statements of fact and opinion contained within this journal are those of the authors, including subject matter experts. CIQS assumes no responsibility or liability for the content of such fact and opinion, nor do they represent the official policy of CIQS.

Published by / Publié par

1200 Portage Avenue, Suite 200

Winnipeg, MB R3G 0T5

T. 204-975-0415

F. 204-947-2047

www.naylor.com

Publisher Darryl Lazarenko

Content Andrea Németh

Layout Gufran Khan

PUBLISHED DECEMBER 2024/CIQ-Q0424

Canadian Publication Mail Agreement #40064978

COVER IMAGE: ISTOCK.COM/PESHKOVA

The Journal of the Canadian Institute of Quantity Surveyors Le Journal de l’Institut canadien des économistes en construction

CONSTRUCTION ECONOMIST

CIQS.ORG

WINTER 2024

Are We Ready for the Construction Tsunami?

Working together will help to achieve the success of our country and its future generations.

12 MESSAGE FROM THE EDITOR

A fond farewell, after many years of service.

CONGRESS 2025 EMBRACES A MOMENTUM THAT FOSTERS POSITIVE CHANGE FOR THE PROFESSION JOIN THE CIQS IN WINNIPEG IN JUNE, 2025!

DECARBONIZING DATA

CENTRES: THE ROLE OF QUANTITY SURVEYORS IN THE AGE OF ARTIFICIAL INTELLIGENCE

Quantity surveyors have an important part to play in containing the emissions of this rapidly growing industry.

JUDICIAL REVIEW OF ADJUDICATOR’S DETERMINATION OF “CONTRACT COMPLETION” PURSUANT TO THE ONTARIO CONSTRUCTION ACT

Clarifying for both contractors and owners when a contract is considered to be “completed”.

24 IN MEMORIAM

Remembering John Robertson Pettie

STRENGTHENING THE CONSTRUCTION INDUSTRY: ENHANCING LABOUR PRODUCTIVITY AND CIQS ADVOCACY INITIATIVES

CIQS champions a vibrant and robust construction ecosystem for Canada’s future.

TAKE OUR KIDS TO WORK DAY

A Professional Quantity Surveyor’s day on the jobsite with his son.

CANADIAN CONSTRUCTION INDUSTRY PERFORMANCE INDICATORS

du président du conseil

ICIQS 2024 Member Survey

“The Results Are In”

Tammy Stockley, PQS(F)

n the spring 2024 issue of Construction Economist, our CEO

Sheila Lennon announced that CIQS staff were preparing a member survey designed to gather feedback on the services CIQS members need most. This is an important initiative and the goal is clear – your input will guide us in shaping programs and processes to better serve our CIQS community.

The member survey campaign was launched on July 23, 2024, and closed on August 16, 2024, for a total of 32 days of data collection. We are excited to share the results of that survey and the valuable insights that will help us focus on areas that matter most to you.

• There were 320 usable responses to the survey, for a participation rate of 14.5%. This response rate is typical for member surveys of this type.

• PQS respondents had an estimated average of 19.5 years of experience, compared to 12.6 years of experience for CECs.

• The group containing students and associates had an average of 7.9 years of experience.

• The self-employed group also had extensive experience, with an average of 20.9 years.

“According to the total base of survey respondents, the main benefit

Stats from the Survey

of CIQS membership is professional recognition and credibility (41%).”

Although recognition and credibility were the main benefits mentioned by PQS and CEC respondents, associates and students cited professional development and skill development most often as their perceived benefit of CIQS membership.

Here’s what else you told us…

The most common career challenges mentioned by CIQS members were:

• Roadblocks in career progress: consistent flow of work, competition for continuing work, opportunities, career strategy, compensation

• Business issues: client management, hiring staff, labour shortage, shortage of skilled QS, QS with Canadian knowledge

• QS pre-project issues: QS process, compliance during bid prep, QS PM overlap, lack of estimating software

The analysis looked at the issues facing members and member satisfaction with the CIQS ability to address these challenges. The priority areas identified on which the CIQS should focus are:

• Advancing the QS field

• Connections, including networking

• Skill and knowledge management Interestingly, these priorities cropped up again when members were asked

to list the top three focus items over the next three years; this provides a clear direction for the CIQS Board when generating its next Strategic Plan (2025-2028).

Survey data highlighted key distinctions in the employment patterns and job functions of CIQS members across sectors and certifications. Following is a summary of the important points:

Business Type Employment

• The majority of CIQS members work with cost/management consultants (37%) and general contractors (27%)

• Trade contractors and developers/ owners employ a smaller percentage (7% each)

Certifications and Employment

• A larger proportion of PQS-certified respondents work in cost/ management consultancies (40%) than general contractors (27%)

• Conversely, CECs are more commonly employed in general contracting than in cost/ management consultancies (35% versus 24%)

Sector Employment

• Respondents working for public sector organizations are less likely

to be employed in cost/management consultancies or general contracting businesses (30%) compared to those supporting the private sector (67%)

Job Functions

There are distinct differences in job functions between those employed by cost/management consultants and general contractors:

• Loan monitoring: More common in cost/management consultancies (44% versus 1%)

• Payment certification: More prevalent among cost/management consultants (47% versus 15%)

• Procurement: Stronger in general contracting (59% versus 22%)

• Estimating: More widespread in general contracting (92% versus 66%)

• Scheduling and time control: More common in general contracting (44% versus 18%)

Contract and Cost Plan Usage

• Standard contract forms are used by most companies (85%), while some still use bespoke forms (29%)

• The elemental cost analysis format is the most common cost plan format (63%), followed by MasterFormat (50%)

This information is invaluable for aligning CIQS training programs with industry demands.

In terms of CIQS courses, the top two were:

• Cost planning and cost control, and

• Contract management and dispute resolution

There was a strong preference for instructor-led courses (67%), with most of those looking for courses that are online (39%).

When it comes to event attendance and preferences, respondent answers showed that PQS members are more likely to attend events in person, with a 41% attendance rate in the past two years. In contrast, only 14% of CEC members and associates/students attended in-person events.

We are grateful for the invaluable insights shared by our members

through the CIQS 2024 Member Survey. Your feedback not only highlights the importance of member input but also reaffirms the credibility of our ongoing engagement efforts.

A heartfelt thank you to everyone who participated. Your contributions are instrumental in shaping the future of the CIQS and ensuring that we continue to provide services that meet the needs of our valued members. ■

Reference CIQS 2024 Member Survey – Final Report September 2024 (Prepared by Bramm Research Inc.)

Tammy Stockley, PQS(F) began her career in Quantity Surveying in 1992 after graduating from Architectural Engineering Technology in St John’s NL. Her professional career roles evolved from cost planner, cost consultant, senior cost consultant, associate, associate director, and to director in her current employment position.

CB Ross Partners have job opportunities in our Project Monitoring department for Assistant Cost Consultants, Cost Consultants and Senior Cost Consultants.

Candidates must have:-

DQuestionnaire pour les membres de l’ICÉC 2024

Les résultats sont maintenant disponibles

Tammy Stockley, ÉCA(F)

ans le numéro de printemps 2024 du Construction Economist, notre directrice générale, Sheila Lennon, a annoncé la préparation par l’équipe de l’ICÉC d’un questionnaire pour les membres visant à obtenir un retour sur les services de l’ICÉC dont les membres ont le plus besoin. Cette initiative est significative, et l’objectif est clair : vos commentaires nous aideront à façonner des programmes et des processus qui servent au mieux la communauté de l’ICÉC.

Le questionnaire pour les membres a été lancé le 23 juillet et s’est clôturé le 16 août, soit 32 jours de recueil des données. Nous sommes ravis de partager les résultats de ce questionnaire et les informations précieuses recueillies qui nous aideront à mettre l’accent sur les domaines qui vous importent le plus.

• Nous avons reçu 320 réponses utilisables au questionnaire, avec un taux de participation de 14,5 %. C’est le taux de réponse habituel pour les questionnaires de membres de ce type.

• Les personnes interrogées ayant le titre d’ÉCA avaient en moyenne 19,5 ans d’expérience, comparé à 12,6 années d’expérience pour les ECC.

Statistiques du questionnaire

• Le groupe contenant les membres étudiants et associés avait en moyenne 7,9 ans d’expérience.

• Le groupe des indépendant(e) s avait également une expérience considérable, avec une moyenne de 20,9 ans.

« D’après l’ensemble des personnes ayant répondu au questionnaire, l’avantage principal de l’adhésion à l’ICÉC est la reconnaissance professionnelle et la crédibilité (41 %). »

Bien que la reconnaissance et la crédibilité soient les principaux avantages mentionnés par les personnes interrogées ayant le titre d’ÉCA ou d’ECC, les membres associés et étudiants ont le plus souvent cité le développement professionnel et le développement des compétences comme étant les avantages qu’ils perçoivent de leur adhésion à l’ICÉC.

Voici ce que vous nous avez dit d’autre :

Les défis professionnels les plus courants mentionnés par les membres de l’ICÉC sont les suivants :

• Obstacles à la progression de la carrière : flux de travail constant, concurrence pour le travail en cours, opportunités, stratégie de carrière, rémunération ;

• Problèmes professionnels : gestion des clients, recrutement de personnel, pénurie de main-d’œuvre, pénurie d’économistes de la construction qualifiés, économistes de la construction connaissant bien les questions canadiennes ;

• Questions relatives à l’avant-projet en économie de la construction : processus d’économie de la construction, conformité pendant la préparation de l’offre, recoupement entre le responsable de projet et l’économiste de la construction, manque de logiciel d’estimation. L’analyse a porté sur les problèmes auxquels sont confrontés les membres et sur leur satisfaction quant à la capacité de l’ICÉC à relever ces défis. Les domaines prioritaires identifiés sur lesquels l’ICÉC doit mettre l’accent sont :

• Faire progresser le domaine de l’économie de la construction ;

• Les contacts, y compris le réseautage ;

• La gestion des compétences et des connaissances.

Il est intéressant de noter que ces priorités sont réapparues lorsqu’il a été demandé aux membres de dresser la liste des trois principales priorités pour les trois prochaines années, ce qui donne une orientation claire

Nous sommes reconnaissants à nos membres pour les informations précieuses qu’ils nous ont communiquées dans le cadre du questionnaire pour les membres de l’ICÉC 2024.

au conseil d’administration de l’IC pour l’élaboration du prochain plan stratégique (2025-2028).

Les données du questionnaire ont mis en évidence des distinctions clés au niveau des formes d’emploi et les fonctions professionnelles des membres de l’ICÉC selon les secteurs et les certifications. Vous trouverez ci-dessous un résumé des points importants.

Type d’employeur

• La majorité des membres de l’ICÉC travaillent avec des consultants en coûts, gestion (37 %) et des entrepreneurs généraux (27 %).

• Les entrepreneurs spécialisés et les promoteurs, propriétaires concernent un pourcentage plus faible (7 % chacun).

Certifications et emploi

• Plus de personnes interrogées ayant le titre d’ÉCA travaillent pour des cabinets de conseil en coûts, gestion (40 %) que pour des entrepreneurs généraux (27 %).

• À l’inverse, les ECC ont plutôt tendance à travailler pour des entreprises générales que pour des cabinets de conseil en coûts, gestion (35 % contre 24 %).

Secteur d’emploi

• Les personnes interrogées travaillant pour des organisations du secteur public sont moins susceptibles d’être employées par des cabinets de conseil en coûts, gestion ou des entreprises générales (30 %) que celles qui soutiennent le secteur privé (67 %).

Fonctions professionnelles

Il y a des différences marquées au niveau des fonctions professionnelles

des personnes employées par des consultants en coûts, administration et celles travaillant pour des entrepreneurs généraux :

• Suivi des prêts : plus courant pour les cabinets de conseil en coûts, administration (44 % contre 1 %) ;

• Certification des paiements : plus courant auprès des consultants en coûts, administration (47 % contre 15 %) ;

• Approvisionnement : plus important pour les entreprises générales (59 % contre 22 %) ;

• Estimation : plus commun pour les entreprises générales (92 % contre 66 %) ;

• Planification et gestion du temps : Plus courant pour les entreprises générales (44 % contre 18 %).

Utilisation des contrats et du programme prix

• Nos formulaires de contrats types sont utilisés par la plupart des sociétés (85 %), bien que certaines utilisent encore des formulaires sur mesure (29 %).

• Le format de l’analyse des coûts par élément est le format de programme prix le plus courant (63 %) suivi du MasterFormat (50 %).

Ces renseignements sont précieux, car ils nous permettent d’aligner les programmes de formation de l’ICÉC sur les demandes du secteur.

En ce qui concerne les formations de l’ICÉC, les deux plus populaires sont :

• La planification budgétaire et le contrôle des coûts ;

• La gestion des contrats et la résolution des différends.

Une préférence marquée pour les cours dispensés par un formateur (67 %) a été constatée, la plupart des personnes interrogées recherchant des cours en ligne (39 %).

En ce qui concerne la participation aux événements et les préférences, les réponses des personnes interrogées ont montré que les membres ÉCA sont plus susceptibles d’assister à des événements en personne, avec un taux de participation de 41 % au cours des deux dernières années. En revanche, seuls 14 % des membres ECC et des membres associés, étudiants ont participé à des événements en personne.

Nous sommes reconnaissants à nos membres pour les informations précieuses qu’ils nous ont communiquées dans le cadre du questionnaire pour les membres de l’ICÉC 2024. Vos commentaires soulignent non seulement l’importance de la contribution des membres, mais réaffirment également la crédibilité de nos efforts continus en matière d’engagement.

Un grand merci à tous ceux qui ont participé au questionnaire. Vos contributions sont essentielles pour façonner l’avenir de l’ICÉC et s’assurer que nous continuons à fournir des services qui répondent aux besoins de nos membres estimés. ■

Référence

Questionnaire pour les membres de l’ICÉC 2024 – Rapport définitif septembre 2024 (préparé par Bramm Research Inc.)

Tammy Stockley, ÉCA(F), a débuté sa carrière en économie en construction en 1992 après avoir obtenu son diplôme de technologie des études techniques à St. John’s en Terre-Neuve-et-Labrador. Au cours de sa carrière professionnelle, elle a occupé les rôles de planificatrice des coûts, consultante en coûts, consultante principale en coûts, associée et directrice associée, avant son poste actuel de directrice.

Introducing a revised CIQS CPD Program: A Flexible, Comprehensive Path to Professional Growth

Sheila Lennon, CAE Chief Executive Officer, CIQS

In response to the evolving professional development landscape and the needs of CIQS members, I am proud to introduce our newly revamped Continuing Professional Development (CPD) Program. The changes provide greater flexibility in how and when CIQS members earn their annual mandatory CPD points.

Our CPD program offers a framework to ensure that members stay at the forefront of the profession in an ever-changing industry. This framework includes an annual process and a minimum benchmark of effort, which divides the various CPD activities into four key categories:

1. CIQS Activity,

2. Structured Learning,

3. Self-Directed Learning, and

4. Professional Participation.

Under the revised program, members are required to earn 30 CPD points instead of 50, but there is now a stipulation as to how these points are earned.

CIQS ACTIVITY: Structured events organized by the CIQS

This category recognizes a member’s participation in events organized by the Institute. Participation in CIQS events is crucial for expanding your professional network while learning from subject matter experts to stay current on industry trends.

Eligible events include:

CIQS Congress: This is our signature event that attracts members and industry professionals from across the country and abroad. Attending the educational sessions at Congress can earn upwards of 15 CPD points over the course of two days.

Webinars and Virtual Events: The CIQS makes it a priority to offer online events throughout the year to make it easier for members to attend, regardless of their location.

Technical Sessions: We work with chapter executives across Canada to provide industry-specific presentations and seminars that provide valuable skills and insight.

Networking Meetings: Throughout the year, members are invited to social networking events and dinners, hosted by either the CIQS or individual chapters, to foster knowledge-sharing in a more informal setting.

CPD Points Allocation:

• One hour of activity = 1 CPD point

• Members are required to earn a minimum of five (5) points in this category, with no maximum allotment.

Structured Learning: Official courses provided by accredited institutions Members may choose to earn CPD points by enrolling in industry-related courses provided by accredited institutions such as universities, colleges, associations, and technical societies.

CPD Points Allocation:

• One hour of structured learning = 2 CPD points

• Maximum allotment in this category: 10 CPD points per year

Self-Directed Learning: the informal learning journey

This category offers flexibility for members to earn CPD points through activities such as self-study (e.g., industry books, journals, research papers, podcasts), attendance at conferences, seminars and technical presentations, or participation in webinars or virtual events relating to the profession.

CPD Points Allocation:

• One hour of self-directed learning = 1 CPD point

• Maximum allotment in this category: 25 CPD points per year

Professional Participation: industry leadership engagement

This category recognizes members’ engagement in industry leadership activities such as serving on CIQS boards, chapter executives, and committees, or other industry-related organizations. CPD points can also be earned for delivering technical and professional presentations at conferences, meetings, workshops, seminars, and courses related to the profession.

CPD Points Allocation:

• One hour of Professional Participation = 1 CPD point

• Maximum allotment in this category: 20 CPD points per year

How does this revised CPD program benefit our members?

The CIQS encourages all members to assess their personal development goals and needs, to ensure they remain informed of industry changes, continually update their skills, and contribute meaningfully to the profession. The new approach to our CPD program offers members clear guidelines and greater flexibility in how their annual CPD points are earned, thus

allowing them to build a comprehensive path for personal growth.

To further support our members on their learning journey, the CIQS is working on a new CPD Module, which is a streamlined system that allows members to easily track and record their CPD activities online. This will help to ensure compliance with the new CIQS CPD requirements by simplifying the process of recording, categorizing, and calculating points, while offering a clear overview of progress. This new system is designed to make it more efficient for both members and the Institute to manage professional growth that meets the standards for which the CIQS is known.

The revised program comes into effect on January 1, 2025, for calendar year January 1December 31, 2025. Members will be required to track CPD points under the new program using the online CPD Module to renew their 2025-2026 membership. (Note: 2024-2025 membership renewal is based on the 50 CPD point system)

The CIQS is committed to supporting your professional growth. Stay tuned for further details about how to track your CPD progress using this module. ■

Présentation de la nouvelle version du programme de DPC de l’ICÉC : Un chemin flexible et complet vers l’épanouissement professionnel

Sheila Lennon, ÉCA Directrice générale, ICÉC

En réponse à l’évolution du paysage du développement professionnel et aux besoins des membres de l’ICÉC, je suis fière de présenter notre nouveau programme de développement professionnel continu (DPC). Ces changements offrent une plus grande flexibilité au niveau de la façon et du moment où les membres de l’ICÉC obtiennent leurs points annuels obligatoires de DPC.

Notre programme de DPC offre un cadre permettant aux membres de rester à la pointe de la profession dans un secteur en évolution constante. Ce cadre comprend un processus annuel et une référence minimale d’effort, répartissant les différentes activités de DPC en quatre catégories clés :

1. Les activités de l’ICÉC ;

2. L’apprentissage formel ;

3. L’autoapprentissage ;

4. La participation professionnelle.

Dans le cadre du programme révisé, les membres sont tenus d’obtenir 30 points de DPC au lieu de 50, mais la manière dont ces points peuvent obtenus est désormais codifiée.

ACTIVITÉS DE L’ICÉC : Événements formels organisés par l’ICÉC

Cette catégorie reconnaît la participation d’un membre à des événements organisés par l’Institut. La participation aux événements de l’ICÉC est essentielle pour développer votre réseau professionnel tout en apprenant des experts en la matière afin de rester au courant des tendances du secteur.

Parmi les événements admissibles, figurent :

Le Congrès de l’ICÉC : Notre événement phare qui attire des membres et des professionnels du secteur de l’ensemble du pays et de l’étranger. La participation aux

séances éducatives du congrès permet d’obtenir jusqu’à 15 points de DPC en deux jours.

Webinaires et événements virtuels : L’ICÉC a pour priorité de proposer des événements en ligne tout au long de l’année afin de faciliter la participation des membres, où qu’ils se trouvent.

Séances techniques : Nous travaillons avec les dirigeants des chapitres locaux à travers le Canada pour offrir des présentations et des séminaires spécifiques au secteur qui permettent d’acquérir des compétences et des connaissances précieuses.

Réunions de réseautage : Tout au long de l’année, les membres sont invités à des événements de réseautage social et à des dîners, organisés soit par l’ICÉC, soit par un de ses chapitres, afin de favoriser le partage des connaissances dans un cadre plus informel.

Attribution des points de DPC:

• Une heure d’activité = 1 point DPC

• Les membres doivent obtenir au moins cinq (5) points dans cette catégorie, sans maximum.

Apprentissage formel : Formations officielles fournies par des établissements accrédités

Les membres peuvent choisir d’obtenir des points de DPC en s’inscrivant à des formations liées au secteur et dispensées par des institutions accréditées telles que des universités, des collèges, des associations et des sociétés techniques.

Attribution des points de DPC:

• Une heure d’apprentissage formel = 2 points DPC

• Attribution maximale pour cette catégorie : 10 points DPC par an 2

L’ICÉC s’engage à soutenir le développement professionnel.

Autoapprentissage : le parcours d’apprentissage informel

L’ICÉC encourage tous ses membres à évaluer leurs objectifs et leurs besoins en 3 4

Cette catégorie permet aux membres d’accumuler des points de DPC par le biais d’activités telles que l’autoformation (livres, revues, documents de recherche, balados sur le secteur), la participation à des conférences, des séminaires et des présentations techniques, ou la participation à des webinaires ou à des événements virtuels liés à la profession.

Attribution des points de DPC :

• Une heure d’autoapprentissage = 1 point DPC

• Attribution maximale pour cette catégorie : 25 points DPC par an

Participation professionnelle : mobilisation pour le secteur

Cette catégorie reconnaît la participation des membres dans des activités de direction au sein du secteur telles que la participation aux conseils d’administration de l’ICÉC, à la direction des chapitres, aux comités ou à d’autres organisations liées à l’industrie. Des points de DPC peuvent également être obtenus pour la prestation de présentations techniques et professionnelles lors de conférences, ateliers, séminaires et formations liés à la profession.

Attribution des points de DPC :

• Une heure de participation professionnelle = 1 point DPC

• Attribution maximale pour cette catégorie : 20 points DPC par an

Qu’est-ce que cette nouvelle version du programme de DPC apporte aux membres ?

matière de développement personnel, afin de s’assurer de rester informés des changements du secteur, de mettre continuellement à jour leurs compétences et de contribuer de manière significative à la profession. La nouvelle approche de notre programme de DPC offre aux membres des lignes directrices claires et une plus grande flexibilité dans la manière d’acquérir leurs points annuels de DPC, leur permettant ainsi de construire un parcours complet de croissance personnelle.

Afin de soutenir davantage nos membres au niveau de leur parcours de formation, l’ICÉC travaille sur un nouveau module de DPC, un système rationalisé qui permettra aux membres de suivre et d’enregistrer facilement leurs activités de DPC en ligne. Cela permettra d’assurer la conformité avec les nouvelles exigences de l’ICÉC en matière de DPC en simplifiant le processus d’enregistrement, de catégorisation et de calcul des points, tout en offrant une vue d’ensemble claire des progrès accomplis. Ce nouveau système est conçu pour rendre plus efficace, tant pour les membres que pour l’Institut, la gestion du développement personnel de manière à respecter les normes d’excellence de l’ICÉC.

Le programme révisé prend effet le 1er janvier 2025 pour l’année calendaire allant du 1er janvier au 31 décembre 2025. Pour renouveler leur adhésion pour 2025-2026, les membres doivent suivre leurs points de DPC dans le cadre du nouveau programme à l’aide du module de DPC en ligne. (Remarque : Le renouvellement de l’adhésion pour 2024-2025 utilise encore le système de 50 points DPC).

L’ICÉC s’engage à soutenir le développement professionnel. Restez à l’écoute pour plus de détails sur la manière de suivre vos progrès en matière de DPC à l’aide de ce module. ■

After 10 Years – Farewell as Editor

Dear readers, contributors, advertisers, management and CIQS Board.

Arif Ghaffur, PQS(F), FRICS, FAIQS

The winter issue of Construction Economist will be my last as Managing Editor. My journey started when I expressed my interest to be the Editor in 2014, continuing as a content contributor, writing my first article in 2010.

I want to take this opportunity to express my deepest gratitude to all of you who have been part of this thoroughly enjoyable journey. It has been a privilege to serve this esteemed publication, which has become best in class.

Every one of the quarterly issues of Construction Economist has allowed me to contribute to the valuable discourse within our industry and to pivot the full spectrum of knowledge and considerable ongoing change.

During my tenure (including as Chair during 2022-2024), I have authored over 40 articles on wide ranging topics, and I have content reviewed over 200 articles, all directly impacting our industry.

With each publication, I strived to bring content that is relevant and current to our readers, espousing new ideas and approaches that shape the ever-expansive landscape of construction economics.

The content from our contributors, the support of our readers, and the knowledge share from committed industry professionals have driven the Construction Economist to heights of excellence.

I am grateful for the assistance of the editorial team, CIQS management, executive and Board that have supported the journal as we have made significant inroads in content quality and publication presentation. Working together, we have positioned Construction Economist to become an excellent resource for members and readers that espouse the internationally recognized ethos of construction economics.

After around 10 years of dedication as the Editor and then the Managing Editor, it is now time to pass the baton as we seek to successfully continue the journey of this journal.

The CIQS has commenced the search for a new Editor for Construction Economist, and I look forward to seeing the journal grow our profession even further. Once again, thanks for your support which is greatly appreciated.

Respectfully submitted,

Arif Ghaffur, PQS(F), FRICS, FAIQS Managing Editor

ACHIEVEMENTS AND ACTIVITIES OF THE PAST YEAR

It was a Busy 2024 with Several Achievements and Other Important Activities in the Works.

By Ibrahim Oladapo, PQS, PMP

Reciprocity Agreements

The CIQS maintains reciprocity agreements with quantity surveying and related institutions in Canada and internationally. The primary objective of these agreements is to establish a framework that facilitates reciprocal advantages for all parties, allowing for mutual acknowledgment of qualifications, certifications, and professional membership.

To enable this, a thorough examination is undertaken, encompassing a detailed review of the bylaws, standards, codes of conduct, ethical norms, and educational prerequisites for membership of the institutions. These are then compared against the established standards of the CIQS for feasibility of reciprocity.

The Education Committee assessed the following institutions, which led to Board approval and signing of reciprocity agreement renewals:

Building Surveyors Institute of Japan (BSIJ)

Hong Kong Institute of Chartered Surveyors (HKIS)

Institute of Quantity Surveyors

Sri Lanka (IQSSL)

New Zealand Institute of Quantity Surveyors (NZIQS)

Nigerian Institute of Quantity Surveyors (NIQS)

Royal Institute of Surveyors

Malaysia (RISM)

Singapore Institute of Quantity Surveyors and Valuers (SISV)

The reciprocity agreement with the Canadian Construction Association (CCA) was also revised with the inclusion of requirements for candidates to complete the ethics exam or course of the institute the qualification of which is being sought through reciprocity.

Accreditation of Academic Institutions

A new Accreditation Committee was onboarded in July 2024 with the primary role of assuring the quality of academic institutions and programs in complying with CIQS standards and easing PQS and CEC candidates’ certification with necessary academic qualification evaluations, which is the first part of the CIQS Test of Professional Experience (TPE).

At the time of writing, the Accreditation Committee has conducted the re-assessment of Conestoga College’s Post Graduate Certificates in Construction Project Management and Construction

Management. Next will be review of British Columbia Institute of Technology’s Architectural and Building Technology diploma program and Bachelor of Technology Construction Management program and, thereafter, George Brown College’s Bachelor of Technology (Construction Management) program. The Committee is also reviewing the accreditation policy and procedures where necessary to ensure that it reflects current best practices.

CIQS Publications

The CIQS has several publications that are used by candidates for the TPE exams, in academic institutions for teaching, and by professionals in practice. These publications set our standards and provide comprehensive guidance for the different topics they cover. Thus, they must be updated periodically to ensure they are current and reflect the needs of industry, academia, etc. There is current work in progress to review and update some of our publications.

I thank all the volunteers on the Education Committee and Accreditation Committee as well as CIQS staff for the work and achievements being made. I encourage our CIQS members to contribute by sharing your experiences, providing suggestions and ideas to help improve the quality of our education and sustain the future of our profession. Please feel free to drop a message via education@ciqs.org. ■

Ibrahim Oladapo’s career spans three continents and over 18 years in consulting, contracting, academia, and public service. He possesses a master’s degree in project and enterprise management and a bachelor’s degree in quantity surveying. He is a Cost Manager with the Government of Alberta and provides expertise for the planning and delivery of the province’s vertical infrastructure projects. Ibrahim is the Education Director of CIQS and is based in Edmonton, Alberta.

CONGRESS 2025 EMBRACES A MOMENTUM THAT FOSTERS POSITIVE CHANGE

FOR THE PROFESSION

2025 Theme: Shaping our Future: Catalysts for Progress

CIQS Congress is the Institute’s flagship event which brings together over 165 industry leaders annually from across Canada and abroad for knowledge-sharing and network building. We are in the process of finalizing our program and will be posting updates on our Congress website as they become available. Visit www.ciqs.org/congress often for up-to-date information on Congress 2025 speaker program and networking events.

Why Attend?

Professional Development

The Educational Program runs over the course of two days, featuring presenters and panelists who over the years have shared their insight on a variety of topics, such as:

• Prompt Payment

• Clean energy, net zero and decarbonization

• Dispute Resolution

• Construction Cost Escalation

• P3 – Public Private Partnerships

• AI and the Construction Industry

Tremendous Networking Opportunity

Meet up with friends – old and new – who share your passions and interests. Exchange knowledge and experience. Build connections that last.

CIQS has negotiated a special Congress rate at Delta Hotels Winnipeg of $199/ night from June 17-24, 2025. Shoulder your trip to Congress with a few personal days and experience everything that Winnipeg has to offer. Book your room online before they are gone.

We look forward to seeing everyone in “The Peg” in 2025!

Who Should Attend?

Anyone involved with construction economics, project collaboration, insurance and dispute resolution will gain useful insights from our presenters. We carefully curate the educational agenda to ensure that it offers information about the latest trends and best practices to help you build strategies for success. CIQS designation members also gain CPD points to use towards their annual membership requirement.

It Pays to Register Early!

Take advantage of our various Early Bird discounts by registering early. ■

TOP 10 ATTRACTIONS IN WINNIPEG

The Royal Aviation Museum

Assiniboine Park

• The Zoo features the Journey to Churchill and the Sea Ice Passage where you can see polar bears swimming above you

• The Leaf features Canada’s tallest indoor waterfall in the Tropical Biome

The Royal Canadian Mint

The Winnipeg Art Gallery-Qaumajuq Inuit Art Centre

The Manitoba Museum

The Forks where children can play in the children’s play area and the water park

FortWhyte Alive offers an opportunity to view bison in their natural habitat

The Exchange District Natural Historic Site includes “North America’s most extensive turn-of-the-20th Century buildings”, galleries, quaint shops and cafés

Thermea by Nordik Spa Nature

The Canadian Museum for Human Rights

Learn more about the City of Winnipeg at www.tourismwinnipeg.com

ARE WE READY FOR THE CONSTRUCTION TSUNAMI?

By Gary Williams

More than half a trillion dollars of construction projects are slated for completion over the next 20 to 30 years in Canada. This includes new public infrastructure, transportation, power generation, electric vehicle battery facilities, critical minerals, and residential housing.

If we all agree these projects are vital to our country and future generations, then it’s time to start

working together to improve their odds of success. These projects will drive 10% of Canada’s GDP, and they are critical for our prosperity for generations to come.

But to have any chance to deliver all the projects planned, we are going to have to completely rethink how we build them. We don’t have enough construction forces to do it all, and our current track record for delivery of mega-projects isn’t particularly good. A long list of high-profile

project – Trans Mountain Pipeline, Ottawa LRT and the Muskrat Falls hydro power project, to name a few –have suffered from a pattern of delays, cost over-runs and under-performance once the projects are delivered. As we look to the future, we will have to significantly up our game.

The Challenge

There is a host of factors to improve, but we can break them down into four general categories:

Shortage of Talent

First, there is not enough construction labour – craftspeople, engineers, project managers and specialists with the necessary experience to do the work on our plates today – let alone that planned for the future. What’s more, the flow of new candidates into the industry is struggling to keep up with the existing resources that are retiring or leaving.1

Reluctance to Embrace Innovation

Second, industry participants are typically paid by the hour, which directly ties to revenue, margins, and executive bonuses. There is no reason or incentive for contractors to spend less hours. As a result, construction productivity in Canada is at a 30-year low.2

Viewing Vital Stakeholders as Impediments

Third, owners and builders don’t adequately plan and account for the time, money and effort needed to get communities and regulators engaged and supportive. Instead, they view these stakeholders as a nuisance to be ignored and overcome.

Dog-Eat-Dog Culture

Fourth, there is a pervasive “dog-eat-dog” culture in the industry. The common misconception that projects are easy, and contractors are not to be trusted drives the need for extra resources and wasted effort.

These are all critical challenges, but if we can solve them, not only will we complete projects successfully, but we will also set a global standard for how to build communities and infrastructure in the decades to come.

The solution requires a commitment from private industry and government leaders to work together to rethink and reinvent the way we build in Canada. Let’s drill down on a few vital elements:

The Procurement Process

Project procurement and construction processes in Canada were established half a century ago

when projects were fewer and smaller. There was less capital investment at risk, plenty of construction resources and the processes and tools used were very basic. Today, that has all changed, but our approach to construction has not.

Today, a single mega-project is a multi-billion-dollar enterprise unto itself. Just think about what it would take to establish a new billion-dollar company: we would hand-pick the best qualified CEO, COO and CFO to lead the company. We would surround them with a top-notch, experienced board of directors and rigorous governance processes. We would make sure they had all the resources and materials necessary to be successful. We would spend extra effort and energy to elicit the support of both the community they serve and the industry within which they operate.

In contrast, as we roll out this series of mega-projects in Canada using the competitive procurement approach in place today; we are not setting projects up for success. On the contrary, our procurement process adds barriers.

In many cases, procurement teams charged with selecting the construction team have little experience setting-up and building mega-projects themselves, so they focus on what they know and can compare – estimated costs or rates. The result? A standard behaviour in the industry focussed on offering the lowest bid.

To out-do competitors, contractors low-ball estimates and risks, and the procurement team is none the wiser. Once awarded the work though, contractors must set up a shadow team to recover their margin and overheads through claims.

Astonishingly, little effort is made by any of the participants in the current process to set up the project/ billion-dollar enterprise for success.

Collaboration and Cooperation

With the tsunami of mega-projects on the books to be delivered, one would expect an extraordinary level of collaboration and cooperation, focussing on success of the projects.

There is no room for finger pointing, stealing resources, sabotage, and dirty tricks.

But sadly, this collaborative approach is all too rare. In reality, every project, and every contractor is on its own. The result: fierce competition for resources, common services, infrastructure, suppliers, construction equipment, and commodities.

The competition drives up wages, cost of material and equipment, and waste at every turn. The result is poor productivity and a cutthroat environment for all stakeholders. Instead, if owners, contractors, suppliers and project teams worked together in each other’s best interests, supporting one another; a virtuous cycle of success building on success could begin, and projects would fare better.

Rethinking Construction

We have a singular opportunity to position Canada to become the gold standard in mega-project delivery. The historic volume of capital projects facing us can be effectively delivered through a cooperative effort that coordinates, encourages, and leads the way in innovation, training, and stakeholder collaboration. ■

References

1. “Construction & Maintenance Industry –Assessment of Construction Labour Markets from 2024 to 2033”, BuildForce Canada, March 2024.

2. “From Bad to Worse: Canada’s Productivity Slowdown is Everyone’s Problem”, TD Canada Trust Chief Economist Report, Beata Caranci, SVP & Chief Economist and James Marple, AVP & Senior Economist at TD Canada Trust, September 12, 2024.

With decades of experience in the planning, construction and commissioning of mega-projects, Gary Williams has a proven record delivering value. His experience spans power, mining, refining and infrastructure projects. He founded project management consulting firm IEDG to advise owner organizations on how to navigate the challenges of mega-projects and programs.

QUANTITY SURVEYING: A ROAD LESS TRAVELLED

By Brandon Roy, BA, CEC, GSC

First, I want readers to understand that this is an opinion piece based on my experience on being a latecomer to the construction industry, specifically in the Quantity Surveying & Construction Estimating fields. I distinctly separate those two topics as I believe that while they stem from the same vein in the construction industry, they are, in my opinion, completely different fields of expertise.

By way of introduction, my name is Brandon Roy, CEC, I am a Senior Estimator with Traugott Building Contractors, and I am the YQS Board observer for 2024-2025. Unlike most, I did not start out in the construction industry, I did not go to school (originally) for construction. While like most going through university, I did work in different general labourer jobs and worked for some contractors, however, it was always viewed as a means to an end – make enough money over the summer to pay for school and have some fun. There was no thought in my mind of going into the construction industry in any capacity after graduating university. It would take almost a decade for that transition to happen after leaving school.

“If only I had known earlier that there were other options in construction besides picking up a hammer or being an engineer or architect, where would I be…” is a thought that has rolled around in my head for the better part of the last

decade and, when deciding what to write for my first article, it came creeping back with a vengeance. Why wasn’t I aware of the Quantity Surveying field? Why wasn’t it presented to me in high school back when I was deciding what I should do with my future? The biggest reason, in my opinion, was that there was a massive stigmatization of “blue-collar” industry in North America while I was going through high school. I was pushed to the university route, the “white-collar” pathway, and told that was the only way to be really successful in life and that the trades weren’t a secure future.

In not just in the QS field but across all trades, we are seeing a massive shortfall of skilled labour due to poor policy and educational direction over the last 30 years. Trade classes, auto-shop; I saw these courses disappear throughout high school. Trade schools were seen as second-hand schools, not for the driven, professional-minded young people coming through the school system. Again, I would say this was guided by well-intentioned but extremely flawed logic.

Fortunately, there is a light at the end of this tunnel. People are beginning to re-look at trades not only as a key component of a healthy economy, but as an opportunity for other areas and advancements in technology that is bringing more and more people into the construction industry from areas that never before intermingled. I am one of those

cases. I started out in retail sales and eventually got into office space planning, which led me to estimating. Here I am ten years later, a proud holder of the CEC Designation, a member of the CIQS.

So where do we go from here? I am happy to say that I believe the CIQS is a prominent leader in developing our industry at the grass-roots level. We need to continue getting into schools and showing the younger generation that you can have a “white-collar” type job in the “blue-collar” industry of construction. We need to show that the industry is more than bad weather, dirty work boots, and calloused hands, though there is absolutely nothing wrong with any of that and I would highly recommend any young QS starting out to work in the field for a year or two to better understand the industry from on-the-ground experience. We also need to continue getting in front of policy makers with our “Days on the Hill” campaigns and introducing top policy makers to the importance of our roles as Quantity Surveyors in the development and growth of the future.

I mentioned at the beginning that I believed that Quantity Surveying and Construction Estimating are different fields; perhaps I should clarify that the roles of Quantity Surveyor and Construction Estimator are different while both come from the same basic field. Similarly, a Structural Engineer and a Mechanical Engineer are both

“If only I had known earlier that there were other options in construction besides picking up a hammer or being an engineer or architect, where would I be…” is a thought that has rolled around in my head for the better part of the last decade and, when deciding what to write for my first article, it came creeping back with a vengeance.

engineers but specialize in separate fields. The CIQS understands this difference in roles, hence, we have two separate designations – PQS and CEC.

Neither is better than the other but rather different branches of the same tree. Both have their roles within the construction industry. I personally am proud of my CEC designation; it fits perfectly with my role and what I want to do throughout my career. I am a boots-on-the-ground type of person who wants to be involved directly in the estimating at a contractor level. Where I believe the dichotomy exists between the two is that some may believe that a CEC might not have the skill sets that a PQS does and

vice versa. I believe this to be a complete falsehood.

This all comes back to my belief that the Quantity Surveying & Construction Estimating fields are a road less travelled in Canada and North America. It’s not a known quantity (pun intended), like it is elsewhere in the world. We currently don’t have the dedicated schooling for QS roles that other countries do, though we are working on improving that. We are still behind in terms of recognition from the wider populace as to what and who we are. Engineers, doctors, accountants are all known quantities with varying specializations. My hope is that we can change the conversation to convince the upcoming generations

to take the road less travelled and that one day, Quantity Surveying will be as ubiquitous as any other major profession in North America. ■

Brandon is a Senior Estimator with Traugott Building Contractors Inc., a national general contractor. He has a diverse portfolio spanning all sectors of construction in commercial, design-build industrial, institutional, Long-Term Care and Multi Family Residential. Brandon holds a Bachelor of Arts, History degree with a minor in Classical Military Tactics from Wilfrid Laurier University and a Construction Estimator Certificate from Conestoga College.

DECARBONIZING DATA CENTRES: THE ROLE OF QUANTITY SURVEYORS IN THE AGE OF ARTIFICIAL INTELLIGENCE

By Ayo Daniel Abiola, P.Eng, PQS

The rapid advancement of artificial intelligence (AI) is driving an unprecedented demand for data infrastructures. Canada’s current budget includes a $2 billion investment to boost AI data processing capacity. AI-driven data construction is accelerating across Canada’s large cities. In the Calgary area alone, major corporations

have announced investments of around $4 billion for new data s by 2037. This unprecedented growth in data to support AI applications will no doubt contribute significantly to increases in carbon emissions through the construction activities and the eventual operations of these facilities. As the world races to reach Net Zero emissions by 2050, our profession can play a pivotal role

in fostering the decarbonization of data even as AI continues to expand. This article discusses some of the roles and opportunities for Quantity Surveyors due to the growth in data infrastructures for AI applications.

AI Data Centres and the Decarbonization Challenge

Data centres are energy-intensive, consuming vast amounts of electricity

to power servers and maintain optimal operating conditions. Artificial intelligence is powered by data centres, which rely on electricity and energy. An AI chat typically consumes 10 to 25 times more energy than an equivalent Google search. The demand for AI applications and the energy to power their data centres is expected to fuel a construction boom. Despite AI being in its infancy,

in 2024, there has been almost 70% growth in data centre construction in North America compared to the previous year, according to findings from CBRE.1

The carbon emission profile of data centres is atypical for commercial buildings, as they largely house technical infrastructure. A study by Introba noted that more than 90% of the embodied carbon footprint of data centre structures is associated with their Mechanical, Electrical, and Process (MEP) equipment rather than the building’s shell and structure.2 The MEP equipment is, in turn, heavy on operational emissions over its lifespan as it continuously operates to meet demands for computing processing, ventilation, and cooling. At present, there are just under 240 data centres operating across Canada in 2024, with most of them collocated in Toronto, Montreal, and Vancouver. New investments are expected to grow the number of data centres in the country within the next decade. Therefore, there is a vital need to address the uptick in carbon emissions associated with these activities if Canada is to meet its climate goals by

2030 under the Net-Zero Emissions Accountability Act

The Role of Quantity Surveyors

Quantity surveyors (QS) are uniquely positioned to influence the decarbonization of data centre infrastructure through various stages of its lifecycle. Here are three key areas where the role of the QS is vital:

• Embodied Carbon Assessment before and during construction-related activities

• Whole Lifecycle Assessments and Analysis of Carbon Emissions

• Independent Verification and Reporting

Embodied Carbon Assessments

The need for robust infrastructure and cooling systems for data centres makes them highly resource intensive. Hence, reducing their embodied carbon is essential for sustainability. Measuring the quantity of carbon emissions associated with the production, transportation, and installation of various construction materials, the construction process, and the installed equipment in data centres

Across Canada, existing data’s are largely collocated in Ontario (105), Quebec (57) and BC (35). New data s will be needed in the coming years to meet the needs for AI applications.

By integrating carbon accounting into cost estimates and project management practices, quantity surveyors can identify high-carbon materials and suggest alternatives with lower environmental impact.

is a laborious exercise. Fortunately, this process is within the skillset of quantity surveyors. Furthermore, QS have broad expertise and understanding of the project delivery and management processes needed to deliver successful construction projects. By integrating carbon accounting into cost estimates and project management practices, quantity surveyors can identify high-carbon materials and suggest alternatives with lower environmental impact. QS can also work with architects and engineers to optimize designs for minimal carbon emissions. Specialized software such as the Embodied Carbon in Construction Calculator (EC3) and AutoBIM Carbon Calculator are available to QS to model and predict the carbon footprint of different construction scenarios. This allows for informed decision-making and the implementation of best practices in low-carbon data centre construction.

Whole Life Cycle Assessments

The total environmental impact of data centres, from construction through to operation and eventual decommissioning, is best determined through whole life cycle carbon emissions assessments. This assessment includes both the embodied carbon assessment, and the operational carbon assessment based on the energy consumption of data centres during their operational life. This procedure requires collaboration with engineers to model energy use scenarios and identify opportunities for energy efficiency improvements. By integrating data from energy modeling software, QS can provide a comprehensive view

of the operational carbon footprint. An additional requirement for whole life cycle carbon assessment is an evaluation of the end-of-life phase carbon emissions. These are the emissions associated with the demolition, recycling, or disposal of materials at the end of the useful life of the data centre. Through detailed whole life cycle carbon assessments, QS help data centres minimize their environmental impact, ensuring sustainable practices are embedded throughout the building’s lifespan. This holistic approach supports the broader goal of reducing the built environment’s contribution to climate change.

Independent Verification

Transparency and accuracy are vital to adequately decarbonize the construction and operation of data centres. As professionals with expertise in cost and material analysis, QS can objectively assess and validate carbon footprints, ensuring compliance with industry and sustainability standards. By conducting thorough audits and cross-referencing data with industry standards and Environmental Product Declarations (EPDs), QS ensure accurate reporting. This independent verification is crucial for decarbonizing data centre construction and operations, as it provides transparency, accountability, and confidence in the sustainability measures being implemented. This, in turn, builds trust among stakeholders, including investors, regulators, and clients, making the project successful.

Closing Thoughts

Given the current gaps in reliable emission performance data for many

construction materials and processes, the role of independent practitioners like Quantity Surveyors becomes indispensable. By managing and providing comprehensive carbon and whole life cycle assessments, Quantity Surveyors can ensure that construction projects meet stringent sustainability standards, enhancing opportunities to reduce the carbon footprint of AI processing data centres. ■

References

1. Kearney, Laila. “North America sees 70% jump in data center supply in construction, CBRE report says.” https://www.reuters. com/markets/us/north-america-sees70-jump-data-center-supply-constructioncbre-report-says-2024-08-20/. Accessed November 7, 2024.

2. Sharma, Kanika Arora. “Hidden Emissions of the Cloud: Examining Embodied Carbon and Cost Impacts of Data Center Cooling Technologies. “ https://www.introba.com/ news/hidden-emissions-cloud/. Accessed November 7, 2024.

Ayo Daniel Abiola, P.Eng, PQS is the manager of Hanscomb’s Saskatchewan office and a seasoned Mechanical Quantity Surveyor. Combining his expertise as both a Professional Engineer and a Quantity Surveyor, Ayo effectively balances cost, sustainability, and performance in new construction and renovation projects across Canada. Ayo is an ASHRAE Certified Decarbonization Professional (CDP) and a recognized expert in sustainable infrastructure. He has trained over 300 public and private sector professionals in system analysis methods for sustainability planning. He is licensed to practice engineering in Ontario and Saskatchewan and is deeply committed to environmentally responsible and cost-effective building solutions. Ayo lives in Regina, Saskatchewan.

JUDICIAL REVIEW OF ADJUDICATOR’S DETERMINATION OF “CONTRACT COMPLETION” PURSUANT TO THE ONTARIO CONSTRUCTION ACT

By Sahil Shoor

The Ontario Divisional Court recently confirmed that “contract completion” is defined the same way for adjudication purposes as for all other purposes under the Construction Act (Ontario) and completion determined by reference to the value of uncompleted work and not the statement of accounts.

In Jamrik v 2688126 Ontario Inc. (2024 ONSC 2854), the Ontario Divisional Court released a decision which assessed an Adjudicator’s determination of when a contract in dispute was deemed “completed” pursuant to sections 2(3) and 13.5(3) of the Construction Act. The Court found the following:

(“Jamrik”). By way of adjudication, the Adjudicator granted Turnkey Construction’s request for an order for prompt payment and ordered Jamrik to pay Turnkey Construction a total of $564,812.87.

The Adjudicator referred to the following provisions of the Construction Act, to make the determination on jurisdiction.

• Section 13.5 (3) of the Construction Act provides: “An adjudication may not be commenced if the notice of adjudication is given after the date the contract or subcontract is completed, unless the parties to the adjudication agree otherwise.”

Jamrik sought judicial review of the Adjudicator’s determination, and, specifically, the Adjudicator’s determination that the contract was not “completed.” Jamrik argued that the Adjudicator did not have jurisdiction to make the impugned order for prompt payment.

Judicial Review: The Adjudicator erred in their interpretation of contract completion

The Adjudicator erred in making a finding on whether the contract was completed when submissions were not made on the issue.

“Contract completion” as defined under section 2(3) of the Construction Act, applies to the entire Act, and not just adjudication provisions of the Act.

Deemed “contract completion” is determined by reference to the value of uncompleted contract work, not the state of accounts outstanding between the contracting parties.

The Facts

This dispute arises from 2688126 Ontario Inc’s (o/a “Turnkey Construction”) claim for prompt payment against Stephen Jamrik 1 2 3

• Section 2(3) of the Construction Act provides: “A contract is deemed to be completed, and services or materials shall be deemed to be last supplied to the improvement when the price of completion, correction of a known defect or last supply is not more than the lesser of:

(a) One per cent of the contract price (b) $5,000”

The Adjudicator determined that the contract was not “completed” pursuant to the Construction Act because more than one per cent of the contract price was owing and unpaid. Since the contract was determined not to be completed under the Act, the parties could resolve their dispute by adjudication, and, accordingly, the Adjudicator had jurisdiction to make the Order.

Justice Corbett, for the Divisional Court, found that the Adjudicator was “plainly wrong in law” in finding jurisdiction and misconstrued the plain meaning of deemed “contract completion” under the Construction Act. Justice Corbett also noted that the Adjudicator did not cite any legal authority for their interpretation of “contract completion” and made a determination solely on there being outstanding payments amounting to more than one per cent of the contract price.

Justice Corbett found that the definition of “contract completion” as provided in section 2(3) of the Construction Act applies to the entire Act, and not solely the adjudication provisions of the Act. Accordingly, the Court emphasized that completion, substantial performance and last supply of services and materials to an improvement all relate to the status of performance of contract work, and not the value

outstanding claims for payment. The Court stated that any interpretation otherwise would result in there being no time restriction in asserting construction liens where the value of a dispute was de minimis relative to the contract.

Justice Corbett also found that the Court was unable to make a finding on the completion of the contract. Justice Corbett noted that while it is the Adjudicator’s choice to decide a point on a basis not raised before him by the parties, it is a matter of procedural fairness to ensure that the parties have made submissions on material points to address the unargued point in question.

For the aforementioned reasons, Justice Corbett referred all issues back for fresh determination. As such, the issues of contract completion and whether adjudication is available will be re-adjudicated.

Key takeaway: Adjudication is an interim remedy for ongoing construction projects

The purpose of the prompt payment provisions under the Construction Act is to prevent the interruption in the flow of funds in a construction project that may ensue as a result of on-going litigation. In most instances, delays in payment in the context of construction projects result in delays in construction, increased costs, and in some cases unavoidable insolvencies.

Adjudication allows for contractors to seek this relief for payment under the Construction Act during the course of the project, as opposed to commencing claims by way of action or through the Small Claims Court (or, if required under the contract, arbitration).

This decision by the Divisional Court clarifies for both contractors and

IN MEMORIAM

owners when a contract is considered to be “completed” in order to pursue these claims by way of adjudication. ■

Sahil Shoor is a leading litigation and dispute resolution partner with Gowling WLG (Canada) LLP with experience in high-value, technically complex construction and infrastructure disputes. Called to the Bar in Ontario and British Columbia, his national practice focuses on the sectors that help drive Canada’s economic development, including commercial construction, real estate development, infrastructure and civil works, power and energy and major public-private partnership/transit projects. He has appeared before courts and arbitration panels (domestic and international) in Ontario, Newfoundland and Labrador, Alberta, Saskatchewan and British Columbia.

John Robertson Pettie, PQS(F), Honourary Life

It is with heavy hearts we announce the passing of John Pettie on August 18, 2024, at the age of 92. John was born second eldest of a family of nine children, in the shale mining village of Winchburgh, Scotland. He excelled in his studies at school and enjoyed playing football (soccer) with local high-level leagues.

He pursued an education and career as a Quantity Surveyor with the National Coal Board. John immigrated to Canada in 1966 and found employment with the Department of Public Works for the Province of Alberta. He started his career in Canada as a team of one, developing a new cost control system and advanced to become Executive Director of the cost control division of that ministry. In-house, his group’s organization expanded to 24 staff. To get some additional professional staff, he travelled to the UK and brought back four experienced QS to grow professional quantity surveyor acceptance in Alberta.

John was a co-founder of the CIQS Prairies Affiliate/Chapter and was President for a number of years. John was a mentor and manager that was recognized throughout the Department of Public Works. He assisted the development of Quantity Surveyor services both in public and private industry sector.

John managed several significant projects throughout the province before retiring in 1997. From 1968 to 1973, he was also a member of the Military Reserve, serving in the Intelligence Unit.

John is sorely missed by all who had the opportunity to be associated with him ■

STRENGTHENING THE CONSTRUCTION INDUSTRY: ENHANCING LABOUR PRODUCTIVITY AND CIQS ADVOCACY INITIATIVES

By Dan Marino

The construction industry is a fundamental pillar of our modern society, responsible for creating the infrastructure that facilitates our daily lives. Every facet of our society is touched by the construction sector; however,

the industry faces a persistent challenge that threatens its sustainability and growth: labour productivity. Recognizing the impact a decline in labour productivity in the construction industry is having on Canadians and understanding why members of the Canadian

Canada could need over 500,000 additional workers on average to build all homes needed by 2030.

Institute of Quantity Surveyors (CIQS) should advocate to their Members of Parliament about this issue is crucial to ensure the health of the construction industry and housing affordability for Canadians.

The Decline in Labour Productivity in the Construction Industry

The labour productivity of the construction industry is imperative to ensure the industry is meeting the needs of society. However, with a consistent decline in labour productivity over the past decades, industry is failing to meet the needs of our growing country, particularly concerning home building and innovation.

Recent data highlight a troubling decline in productivity, with the number of housing units built per 100 residential construction projects falling over the past two decades. Canada is also dealing with a critical skilled labour shortage needed to build housing supply. Canada could need over 500,000 additional workers on average to build all homes needed by 2030. This productivity gap significantly impedes our ability to tackle housing affordability issues amidst the ongoing cost-of-living crisis. The sector’s labour productivity also varies across provinces, territories and municipalities, suggesting regionally specific labour challenges. With population growth at record highs, it is essential that Canada ensures these trends do not continue.

The Role of CIQS Members and Advocacy

As advocates for the construction industry’s prosperity and sustainability, CIQS members hold a unique position to address the issue of labour productivity in the construction industry. CIQS professionals deliver accurate cost forecasting for tomorrow’s infrastructure needs; this includes labour costs and the costing timelines that depend on productivity, amongst other factors.

By actively engaging in advocacy efforts, CIQS members can leverage their knowledge and influence to bring about change. They possess a deep understanding of the complexities of construction projects and the requirements for a successful, timely, and on budget infrastructure project. This places them in an ideal position to communicate the dire consequences of declining labour productivity to policymakers and the public.

A New CIQS Advocacy Campaign

Acknowledging the importance of this issue, the CIQS has launched a new Count-on-Us advocacy campaign centered around labour productivity in the construction industry. The campaign aims to raise awareness about the critical need for strategic policy reforms and investments aimed at boosting labour productivity in construction. Key actions should include streamlining approval processes, expanding the availability of public land, promoting modular and prefabricated construction methods, and enhancing training and apprenticeship programs to address the skilled labour shortage. By encouraging members to engage with their Members of Parliament, this campaign’s core objective is to drive change by urging policymakers to support the construction workforce, create more

jobs, and boost productivity in the construction industry.

Through these efforts, the CIQS champions a vibrant and robust construction ecosystem that not only builds physical structures but also empowers communities, fosters innovation, and drives economic growth. By addressing the issue of labour productivity head-on, CIQS members contribute to creating a construction industry that stands as a beacon of progress and a testament to the power of collaboration.

Inclusion in the CIQS 2025 Federal Pre-Budget Recommendation

The significance of the decline in labour productivity in the construction industry has prompted the CIQS to include a call to action for the federal government to invest in the workforce as a key economic driver to deliver essential affordable housing infrastructure in their 2025 federal pre-budget submission. The CIQS is advocating for major changes and innovations including modulization, addressing the shortage of skilled labour, and improving the efficiency of policy process for a national housing plan.

The inclusion of labour productivity in their pre-budget submission is not just an industry-specific concern; it’s a testament to the recognition of the construction sector’s pivotal role in national development. By supporting these measures, the government acknowledges the importance of ensuring a successful construction industry to ensure our communities can keep growing sustainably. ■

Dan Marino is a Public Affairs Associate with Impact Public Affairs in Ottawa, Ontario. Dan works with various clients to engage the government on Canadian construction issues, including the Canadian Institute of

TAKE OUR KIDS TO WORK DAY: A HUMBLING DAY WITH MY SON

By Kevan Peters, PQS, C.E.T.

On November 6th, I had the unique opportunity to bring my son along to work for “Take Our Kids to Work Day.” As a Professional Quantity Surveyor, my daily responsibilities often appear complex and opaque to the uninitiated. This day was not only a chance for my son to learn more about what I do but also a moment for me to reflect on the intricacies and impact of my profession through his curious eyes.

The morning began with the expected blasé attitude of a teenager who is clearly too cool to spend a day with his father, expecting nothing but a full day of crunching numbers in spreadsheets. I acknowledge that some days do look just like that, but I had much different goals for this day. We started with a high-level overview of what a Quantity Surveyor does and then drilled down further into my unique niche of Loan Monitoring. I took this opportunity to explain the basics of cost estimation and financial planning, highlighting how these elements are crucial in preventing budget overruns and ensuring that projects stay on track. I shared stories of projects in which unforeseen circumstances required us to adapt and help find creative solutions in the best interest of both owner and lender. This activity illustrated an important lesson in resilience and problem-solving, demonstrating that while our work is meticulously planned, flexibility and logical decision making are often required.

My office is located within a co-working space where professionals from many firms work in the same space together on a flexible basis. This provided the unique opportunity to meet with other construction

consultants, including civil designers, structural engineers and planners. Each introduction was accompanied by a brief explanation of their roles, their education, and sample projects they are working on. This not only helped my son to understand the collaborative nature of our work but also the diversity of skills and expertise required to bring a construction project to fruition. He observed firsthand how every piece of the puzzle fits together.

One of the day’s highlights was a site visit to a construction project we are currently participating in. Equipped with a hard hat and a safety vest, my son walked through the busy site, eyes wide with curiosity and some apprehension. We first met with the site’s supervisor who explained the importance of strict scheduling and safety practices on an active construction site. We also met with various trade professionals who shared their career journies with him, including pathways through education and apprenticeship. I explained how we monitor construction progress, manage costs, and ensure that the project adheres to the planned schedule. This first-person view behind the curtain helped make the abstract concepts I talk about more relatable and engaging for him.

Our day concluded with a visit to a material testing laboratory where he met with a technician who explained the need for strict control measures for the materials used in our bridges and roadways. On our way back home, he expressed a newfound appreciation for the complexity and importance of my work. For me, it turned out to be a day of self-reflection; I was proud to share my professional world with my son but it was also a reminder to myself that my career as a PQS has provided me connections with so many

different professions, all within the construction industry.

I don’t know what path lies ahead for him, but I’m glad to have had the opportunity to expose him to various professions, all within a short workday. “Take Our Kids to Work Day” was more than just a chance for my son to understand what I do for a living; it was an opportunity for us to bond and share meaningful experiences. It highlighted the value of introducing the younger generation to various professions, fostering curiosity, and inspiring them to explore their interests and potential career paths. For both of us, it was an unforgettable day filled with learning, discovery, and newfound respect for each other. ■

Kevan is a partner with Halucha Cost Consulting, based out of Niagara Falls, ON. With over 20 years of industry experience, Kevan holds a diverse skill set which allows him to view cost consulting projects from an entrepreneurial cost control perspective, as required to guide clients toward successful project delivery. His approach promotes collaboration, curiosity, creativity and a bit of tomfoolery.

CANADIAN CONSTRUCTION INDUSTRY PERFORMANCE INDICATORS

By Udayan Chatterjee, B.Tech, MRICS, PMP, PSP, PMI-SP

Data collated and studied around August and September this year on the performance indicators of the Canadian Construction Industry offers valuable insights into its GDP, composition and changes in investments, construction price indices across multiple cities, housing starts composition and changes, and composition of employment.

Construction Industry GDP and Investments

Data indicates a downward trend in the construction industry’s GDP over the last two years, where the GDP fell from $165,555M in July 2022 to $160,405M in July 2024, which is a 3.7% decrease. The year-over-year decline in the GDP that was observed is 2.8%, from $165,037M to $160,405M, which suggests the decrease in GDP over the past year was more drastic when compared to the prior period.

The growth rate of investments in the industry seems to be decreasing as well. The year-over-year increase in investments in non-residential buildings is only 3.5%, whereas that for the residential buildings is 7.8%.

In terms of composition, as of July 2024, the investments in the residential buildings (73%) have been observed

Based on available data from Statistics Canada as on September 30, 2024.

1. Change in Construction Industry Gross Domestic Product (GDP), as at Jul 2024

to be almost three times of the investments in the non-residential buildings (27%).

Housing Starts

In the second quarter of 2024, the housing start composition percentages was dominated by Ontario, which constituted 33% of the housing starts among the four major Canadian provinces. This was followed by Quebec (26%), British Columbia (21%) and Alberta (20%).

However, interestingly, in terms of increase in the housing starts, the relevant data in Ontario and British Columbia only grew by 6% and 9% respectively, when measured quarter over quarter. But the quarter over quarter increase in the housing starts has been drastic in Quebec (80%), followed by Alberta (20%).

Building Construction Price Indices

The latest data from Statistics Canada reveals significant increases in building construction prices for both residential and non-residential projects across an 11-city index as of 2nd quarter of 2024. The indices values are based on 2017 data as the base (Index Value = 100).

2. Composition & Changes in Investments in Construction, as at Jul 2024

3. Construction Price Index Across Metropolises, as at Q2 2024

5. Changes in Housing Starts, Q1 to Q2 2024 (Residential Construction)

Residential construction prices have been observed to be the highest in Toronto (Index Value = 203.3), followed by Calgary (Index Value = 190).

Whereas non-residential construction prices have been observed to peak in Ottawa-Gatineau (Index Value = 160.8), very closely followed by Toronto (Index Value = 159.6).

This also indicates that prices for residential construction have risen far more drastically over the various metropolises, when compared to prices for non-residential construction over the years.

Employment in the Canadian Construction Industry

In August 2024, the composition of employment within the construction industry highlighted a notable gender disparity. Males continue to dominate the workforce, similar to the data collected previously, constituting 87% of the industry employment, while females comprise a

4. Housing Starts Composition, as at Q2 2024 (Residential Construction)

6. Composition of Employment in All Industries Vs Construction, as at August 2024

Canada. Table 14-10-0022-01 Labour force characteristics by industry, monthly, unadjusted for seasonality (x 1,000)

mere 13%. This data contrasts with the more balanced gender distribution seen across the total working population of Canada, where the male to female ratio is approximately 53% to 47%. This persistent gap in the gender representation within the construction sector emphasizes the ongoing challenge of achieving gender equality in this industry.

Udayan Chatterjee, B.Tech, MRICS, PMP, PSP, PMI-SP, is Associate Director, Contracts & Commercial Lakeland Consulting Inc. Udayan is a commercial and project management professional with expertise in quantum assessment, schedule forensics, contracts and claims management. He holds a Bachelor’s Degree in Electrical Engineering, Diploma in Construction Engineering and has worked on various large scale transportation, mining and commercial construction projects across the globe.

Statistics Canada. Table 18-10-0276-01 Building construction price indexes, by type of building Index, 2017 = 100

CMHC-SCHL: CMHC Starts and Completion Survey, Market Absorption Survey

Statistics

CONGRATULATIONS TO THE FOLLOWING DESIGNATION HOLDERS WHO HAVE QUALIFIED AS A PQS OR CEC

CIQS – British Columbia

Ben Park, CEC

Brendan Raymond Cahill, CEC

Chun Hin Cheung, CEC

Karl Stewart Nylund, CEC

Madhavee Uthpala Herath Mudiyanselage, CEC

Monday Oluwaseun Taiwo, CEC

Sheradon Tsui, CEC

CIQS – Maritimes

Abby Murray, CEC

CIQS – Members at Large

Babar Sharif, CEC

Toochi Chukwunyere, CEC

CIQS – Ontario

Abu Firnaz Zubairul Ameer, PQS

Alex Seunghak Yeom, CEC

Anushka Chathurangi Hapuarachchige, PQS

Ayodele Oluwasegun Osuporu, CEC

Ayoola Tobun, PQS

Azadeh Khaleghi, CEC

Carla Zanardini Martins Boruchok, PQS

Colin Sauve, CEC

Darshi Rajalingam, CEC

Deidre Toussaint, PQS

Feyza Tatar, PQS

George Collaparambil Abraham, PQS

Haoyu Wang, CEC

Hien Dam, CEC

Hossein Fotouhi Baraghoush, PQS

Jay H. Gajiwala, PQS

Kannan Venkatachalam, PQS

Laarni Reyes Reterta, CEC

Index to Advertisers

Mugunthan Sriskantharajah, PQS

Neals Jason Sham, CEC

Nga Chi Kam, CEC

Nikhik Lakheda, CEC

Noor Mohd Al-Samarai, PQS

CIQS – Prairies and NT

Ajibola Akinola Odujole, CEC

Colin Elliott, PQS

Isaac Olugbenga Okunola, CEC

Jason S. Peters, CEC

Karina Bicaldo Advincula, CEC

Kristian James Wenaus, PQS

Mary Fe Gutierrez, CEC

Sonny Jay Joco Sinda, CEC

Steve Popovics, CEC

Wilmer Pontevedra Bajao, PQS

CIQS – Québec

Serge Pomerleau, ECC/CEC