Construction Economist Journal - Winter 2018

BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES • ONTARIO • QUÉBEC • MARITIMES • NEWFOUNDLAND AND LABRADOR

CONSTRUCTION ECONOMIST

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

WINTER 2018

Industry Interview

Indigenous Awareness

Zey Emir

Robert Laboucane

The Pricing Legal Corner of Cranes

SandraEffiong Esu Gabriel

CIQS & RICS Joint Event, Ontario (November 15, 2018)

PM 40065075

• New trade agreement (Editorial) • Changing planet and the built environment (Angela Lai) • Leadership review – Office leasing (Terry Doran) • Time at large (Paul Hancock) • Ego – Please like me (Craig Woodall) ciqs.org

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Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 3

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The mission of CIQS is to promote and advance professional quantity surveying and construction estimating; to establish and maintain national standards; to recruit, educate and support our members.

Canadian Institute of Quantity Surveyors 90 Nolan Court, Unit 19, Markham, ON L3R 4L9 t. 905/477.0008 f. 905/477.6774 toll free. +1 866/345.1168 e. info@ciqs.org www.ciqs.org

Executive Director Sheila Lennon, CAE.................... . . . . . . execdir@ciqs.org Editor Arif Ghaffur, PQS....................... . . . . . . . editor@ciqs.org Send Change of Address to: Canadian Institute of Quantity Surveyors 90 Nolan Court, Unit 19, Markham, Ontario L3R 4L9

CIQS Board Chair/Secretary/Treasurer: David Dooks, PQS(F) Vice Chair: TBD

CONSTRUCTION ECONOMIST WINTER 2018

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

Features Construction sector moving toward innovation. . . . . . . . . . 16 Changing planet and the built environment . . . . . . . . . . . 18 Security of payment in Canadian construction projects . . . 21 The pricing of cranes . . . . . . . . . . . . . . . . . . . . . . . . 24 Indigenous awareness – part 2. . . . . . . . . . . . . . . . . . 28 Insurance valuations and building reinstatement costing. . 30 Leadership review – Office leasing . . . . . . . . . . . . . . 32 Save the date – CIQS Congress 2019. . . . . . . . . . . . 34 Industry interview – Zey Emir. . . . . . . . . . . . . . . . . 35

Registrar and Director: Michael Gabert, PQS

Getting to know our people – Sophia Chin You . . . . . 38

Director: Indu Elapatha, PQS

In memoriam. . . . . . . . . . . . . . . . . . . . . . . . . . 39

Director: Erin Brownlow, PQS Director/Assistant Secretary/Treasurer: Royston Lewis, PQS(F)

24

Director: Mike Watkinson, PQS Director: Wassim Sultani, PQS Education Director: Wendy Hobbs, PQS

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 four times a year on behalf of the Canadian Institute of Quantity Surveyors by

Corners

Messages

Education Corner. . . . . . . . . . . . .

11

Chair’s Message . . . . . . . . . . . . . . .

6

Legal Corner. . . . . . . . . . . . . . . .

12

Executive Director’s Message. . . . . . .

9

Sustainability Corner. . . . . . . . . . .

14

Editor’s Message. . . . . . . . . . . . .

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Chair’s Message

Quantity Surveyors go international

I

n November of 2018, the CIQS participated in the Pacific Association of Quantity Surveyors (PAQS) conference in Sydney, Australia. The Australian Institute of Quantity Surveyors (AIQS) hosted 425 guests, comprising quantity surveyors, cost engineers, and industry partners from 28 countries.

The conference was spread over six days. Prior to its start, the biennial International Cost Engineering Council (ICEC) meetings were held; they include member associations from all four global regions of ICEC. As a member of ICEC, the CIQS attended the day-and-a-half meetings to trade ideas and industry demands for our trade. Each member organization presented a formal report covering the activities of its institute and the current construction environment in each country or region.

The PAQS committee meetings followed, covering four primary committees: education, research, sustainability, and BIM. The meetings

were well attended and included open discussions on the advances and trends observed in each association’s region.

Due to the 2018 PAQS conference being held in November instead of its traditional July and August timing our current education director, Wendy Hobbs, was unable to attend due to her teaching duties. Recognizing the importance of education to the PAQS, the CIQS Board invited David Lai, PQS(F), our former education director experienced in the PAQS education committee meetings. We appreciate his participation. Ian Duncan, current past Chair of PAQS and the CIQS International Committee Chair, joined the sustainability committee meetings.

I participated in the BIM committee.

Generally, Canada tends to rely on BIM for design and as-builts models. It was surprising to see how other countries are using BIM to develop accurate models for extracting data for the use of costing. During the meeting, the AIQS

6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

David Dooks, PQS(F)

representative presented the ‘Australian and New Zealand BIM Best Practice Guide’. This newly published guide is a starting point to describe to BIM designers how to prepare a model through quality assurance, so that the quantity surveyor can extract useable and reliable quantities. The guide has a legal and liability section, and includes language to ensure that the ownership of the quantities used for costing remain the property of the QS. Through its education committee, the CIQS should consider how to develop its own guidelines to be shared with the Canada BIM Council (CanBIM) and the Institute for BIM in Canada (IBC).

The PAQS board now includes 14 associations. At its Board meeting, it moved for, approved and welcomed the Association of South African Quantity Surveyors (ASAQS) as a member of PAQS. While South Africa does not fall within the defined PAQS continued on page 8

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Message du Président du Conseil

Les économistes en construction à l’échelle internationale

E

n novembre 2018, le CIQS a participé à la conférence de la Pacific Association of Quantity Surveyors (« PAQS ») à Sydney, en Australie. L’Institut australien des métreurs (AIQS) a accueilli 425 invités, comprenant des arpenteurs-géomètres, des ingénieurs spécialistes des coûts et des partenaires industriels de 28 pays.

La conférence s’est étendue sur six jours. Avant son lancement, les réunions bisannuelles du Conseil international d’ingénierie des coûts (« ICEC ») ont eu lieu ; elles incluent des associations membres des quatre régions mondiales de l’ICEC. En tant que membre de l’ICEC, le CIQS a assisté aux réunions d’une journée et demie pour échanger des idées et des demandes de l’industrie pour notre commerce. Chaque organisation membre a présenté un rapport officiel couvrant les activités de son institut et l’environnement de construction actuel dans chaque pays ou région.

Les réunions du comité PAQS ont ensuite suivi, couvrant quatre comités principaux : éducation, recherche, durabilité et BIM. Les réunions ont attiré de nombreux participants et comprenaient des discussions ouvertes sur les progrès et les tendances observés dans la région de chaque association.

En raison de la conférence PAQS de 2018 en novembre, au lieu du calendrier habituel de juillet à août, notre directrice de l’éducation actuelle, Wendy Hobbs, n’a pas pu y assister en raison de ses fonctions d’enseignement.

Reconnaissant l’importance de l’éducation pour la PAQS, le conseil de la CIQS a invité David Lai, PQS (F), notre ancien directeur de l’éducation, qui a siégé pendant de nombreuses années aux réunions du comité de l’éducation de la PAQS. Nous apprécions sa participation. Ian Duncan, CLICK HERE to return to Table of Contents

ancien président actuel de la PAQS et président du comité international de CIQS, a participé aux réunions du comité de développement durable.

J’ai de nouveau participé au comité BIM. De manière générale, le Canada a tendance à compter sur le BIM pour la conception et la modélisation de relevés. Il était surprenant de voir comment d’autres pays utilisent le BIM pour développer des modèles précis permettant d’extraire des données pour l’utilisation des coûts. Au cours de la réunion, le représentant de l’AIQS a présenté le « Guide des meilleures pratiques du BIM australien et néozélandais ». Ce guide récemment publié est un point de départ pour expliquer aux concepteurs de BIM la manière de préparer un modèle grâce à l’assurance qualité, afin que le métreur puisse extraire des quantités utilisables et fiables. Le guide comporte une section légale et de responsabilité, et comprend un libellé garantissant que la propriété des quantités utilisées pour l’établissement du coût reste la propriété du système de qualité. Par l’intermédiaire

de son comité d’éducation, le CIQS devrait réfléchir à la manière d’élaborer ses propres lignes directrices à partager avec le Conseil canadien BIM (« CanBIM ») et l’Institut pour la BIM au Canada (« CIB »).

Le conseil d’administration de la PAQS compte maintenant 14 associations.

Lors de la réunion de son conseil d’administration, il a proposé, approuvé et accueilli l’Association des arpenteursgéomètres sud-africains («ASAQS») en tant que membre de la PAQS. Bien que l’Afrique du Sud ne relève pas de la région définie par la PAQS, des aménagements spéciaux ont été faits, car elle a été une observatrice dédiée au cours des 23 dernières années. Les séances du matin de la PAQS sont consacrées aux travaux du conseil d’administration, tandis que les séances de l’après-midi invitent les observateurs à y assister. Cette année, le Conseil européen des économistes de la construction (« CEEC ») et la RICS ont participé à la réunion. La RICS a présenté une mise à jour de la Coalition suite à la page 8

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 7

Chair/Message du Président du Conseil continued

Chair’s Message continued

Message du Président du Conseil a continué

region, special accommodation was made as it has been a dedicated observer for the past 23 years. PAQS morning sessions are dedicated to business of the Board, while the afternoon sessions welcome observers to attend. This year, the European Council of Construction Economists (CEEC) and the RICS joined the meeting. The RICS presented an update on the International Construction Measurement Standards Coalition (ICMS), which included the current progress on ICMS2 Life Cycle Costing schedule for release in 2019, the status of usage, and adoption for the adoption of ICMS from around the globe.

The afternoon concluded with the country reports, prepared by the member associations to provide info on membership size, current officers, members in attendance, institute activities, and economic conditions. Each association may have different business models and goals but, as a collective group, we learn about the successes and failures of each other and can use these as takeaways to adopt or adapt to our own initiatives and long-range plans.

We all have similar challenges and issues in growing and improving our organizations, and promoting the role of the QS. The main part of the conference occurs in the final three days, including greeting ceremonies, keynote speakers, guest speakers, panel discussions, product demonstrations, professional research paper presentations, award presentations, trade exhibits, and social networking opportunities. Keynote speakers provided a look into ‘human contact through a handshake‘, concepts in the current development of Artificial Intelligence (AI), and how humans will evolve with changing technology.

The ICEC and PAQS conferences provide many opportunities for us to connect and develop new relationships with like-minded QS professionals from around the world.

They open many doors for joint-effort collaborations such as ICMS and best practice guidelines. CIQS involvement has given us a venue in which we demonstrate that we are a respected profession and leaders in promoting the role of the QS.

internationale des normes de mesure de la construction (« ICMS »), qui comprenait l›état d›avancement actuel du calendrier de détermination du coût du cycle de vie d›ICMS2 à paraître en 2019, ainsi que le statut de son utilisation et de son adoption par le monde entier.

L’après-midi s’est terminé avec les rapports des pays, préparés par les associations membres pour fournir des informations sur le nombre de membres, les membres actuels du bureau, les membres présents, les activités de l’institut et les conditions économiques. Chaque association peut avoir des modèles commerciaux et des objectifs différents, mais, en tant que groupe, nous en apprenons davantage sur les succès et les échecs des uns et des autres et pouvons les utiliser comme points de départ à adopter ou à adapter à nos propres initiatives et plans à long terme.

Nous avons tous des défis et des problèmes similaires pour développer et améliorer nos organisations et promouvoir le rôle du QS. La partie principale de la conférence se déroule au cours des trois derniers jours et comprend : des cérémonies de bienvenue, des conférenciers d’honneur, des conférenciers invités, des tables rondes, des démonstrations de produits, des présentations de documents de recherche professionnels, des prix, des expositions commerciales et des opportunités de réseautage. Les conférenciers ont examiné le « contact humain par une poignée de main », les concepts du développement actuel de l’intelligence artificielle (« IA ») et ​​ la manière dont les humains évolueront avec les technologies en constante évolution.

Les conférences ICEC et PAQS nous offrent de nombreuses occasions de nouer des relations et de développer de nouvelles relations avec des professionnels arpenteursgéomètres avec des vues similaires et venant du monde entier. Ils ouvrent de nombreuses portes pour des collaborations conjointes telles que le SGIC et les lignes directrices sur les meilleures pratiques. La participation de CIQS nous a permis de démontrer que nous sommes une profession respectée et que nous sommes des leaders dans la promotion du rôle d’arpenteur -géomètre.

8 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

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Executive Director’s Message

Sheila Lennon, CAE

Register for the 2019 CIQS Congress

T

he CIQS Board of Directors invites all members to attend the 2019 CIQS Congress, July 25-28, in Quebec City, QC. This Congress will mark 60 years of the Institute so come celebrate with your colleagues and friends.

There is always the decision on whether or not to attend Congress. There are many factors involved in your decision such as cost, travel time, and time away from your work. However, the pros of attending could outweigh the cons: it is an opportunity to obtain a high number of continuing professional development (CPD) points – 50 CPD points are required each year to maintain your designation with the CIQS. The networking opportunities at Congress are also beneficial, expanding your network and knowledge of the industry through engagement with others.

Creating a diverse network can be useful now, in your current position, but it also allows you to learn what other opportunities might be available if you are ready for a change.

The value of attending Congress comes from what you as a member and professional take back to the workplace and share. Returning to the workplace and transferring the knowledge obtained at the event makes the investment in time and money worthwhile.

The CIQS 60th Annual General Meeting will take place during Congress 2019.

This is the members’ opportunity to elect members of the board, make important decisions regarding the organization, and be informed of the activities of the Institute.

The CIQS Congress 2019 will be held at the Hilton Quebec. Details on accommodation and registration will be available in January 2019. Make sure to take advantage of the early-bird registration rates.

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A reminder to all young quantity surveyors: the David Lai Young Quantity Surveyor Congress Bursary will be available for Congress 2019. The bursary program will provide funding for one YQS from each Chapter region in Canada to attend

Congress. A YQS is a member (Associate, CEC, or PQS) in good standing with the CIQS under the age of 40. Applications will be available in January 2019.

The CIQS looks forward to seeing you in Quebec City.

This Congress will mark 60 years of the Institute so come celebrate with your colleagues and friends... The CIQS looks forward to seeing you in Quebec City.

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 9

Editor’s Message

USMCA – What will the future bring?

Another perspective on the US, Mexico, Canada trade agreement

C

hief Economist David Watt of HSBC Canada believes that the new United States, Mexico, Canada Agreement (USMCA) will remove a source of uncertainty for business investment heading into 2019.“There are both opportunities and more challenges.

Canadian firms have many opportunities to benefit from lower trade barriers,” says HSBC’s David Watt.

Further, “Canada has a free trade deal with the EU [Comprehensive Economic and Trade Agreement], is in the process of approving free trade with many Asian nations and now has USMCA as well. Canadian firms have many opportunities to benefit from lower trade barriers. However, they must step up and take advantage. There are still lingering competitive challenges to overcome.”

As the Canadian Free Trade Deal with the EU and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) are being drafted and discussed, both David Watt and the Government of Canada believe there is room for optimism, with the following 10 items being of particular interest.

1. Broader Benefit: Although NAFTA worked better for Mexico than the USMCA in the area of the automotive industry, under the new rules of origin, it may have the potential to benefit automotive production throughout North America.

2. Sourcing Opportunities: These revised automotive rules may benefit Canada by providing additional sourcing opportunities for Canadian parts producers.

3. Positive GDP: Reduced trade uncertainty is likely to contribute positively to overall GDP growth in the remainder of 2018 and 2019.

4. Phased Implementation: New rules of origin for the auto sector will only start to be phased in in 2020 and are not likely to have much of an effect on production in the near term.

BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES • ONTARIO • QUÉBEC • MARITIMES • NEWFOUNDLAND AND LABRADOR

CONSTRUCTION ECONOMIST

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

WINTER 2018

Industry Interview

Indigenous Awareness

Zey Emir

Robert Laboucane

The Pricing Legal Corner of Cranes

SandraEffiong Esu Gabriel

CIQS & RICS Joint Event, Ontario (November 15, 2018)

PM 40065075

• New trade agreement (Editorial) • Changing planet and the built environment (Angela Lai) • Leadership review – Office leasing (Terry Doran) • Time at large (Paul Hancock) • Ego – Please like me (Craig Woodall)

Journal Online The Construction Economist is also available in electronic format.

Please visit the CIQS website www.ciqs.org and press the Publications tab.

ciqs.org

10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

Arif Ghaffur, PQS

The Government of Canada believes that, although there will be challenges, there are still benefits to the new USMCA. 5. Intellectual Property: Many of the USMCA intellectual property provisions are closely aligned with the CPTPP, such as pharmaceutical patents and long-term copyrights.

6. Job Creation: USMCA will reinforce strong economic ties between Canada, the US and Mexico, and support wellpaying middle-class jobs for Canadians.

7. Key Outcomes: USMCA provides key outcomes for Canadian workers, businesses, and communities in areas such as labour, environment, automotive trade, dispute resolution, culture, energy, agri-food, and includes language on the rights of Indigenous peoples.

8. Tariff Benefits: USMCA includes the maintenance of tariff benefits between Canada, the US and Mexico, and ensures that the vast majority of USMCA trade will continue tariff-free.

9. Dispute Resolution: Legal avenues will continue to exist for recourse, as existed under NAFTA. 10. Additional Opportunities: The revised automotive rules of origin may benefit Canada by providing additional sourcing opportunities for Canadian Parts producers. There are many more opinions expressed by David Watts and the Government of Canada on the USMCA and its potential impact on Canada and the world in The National Post, The Globe and Mail, the Toronto Star, and on CBC. I thank you for your support and contribution to the Construction Economist, and sincerely wish you and your families a truly wonderful holiday season and all the best for 2019. If you have feedback, suggestions, or any articles that you would like to be considered for publication, please email editor@ciqs.org.

Please Note The article on pages 29 to 31 of the Fall Edition of the Construction Economist relates to the upcoming changes in Ontario.

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Education Corner

Wendy Hobbs, PQS(F)

A

Mentoring – A rewarding experience

s 2018 winds down, I look back on the year and am amazed at the amount of time people have given to volunteering. It is humbling to see so many people put that much effort towards making our organization run smoothly.

Speaking of volunteering, I would like to send a huge thank you to all the applicants who volunteered for the Education Committee. The Board will be selecting the new committee

members at our January meeting in Markham. I am looking forward to working with such an excellent group of people.

This also segues into our usual reminder that volunteering for the CIQS, either nationally or locally, earns you CPD points. So, if you are looking to boost your numbers that is an excellent way of doing it.

I wish everyone a joyous holiday season. I cannot wait to see what 2019 brings us.

It is humbling to see so many people put that much effort towards making our organization run smoothly.

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Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11

Legal Corner

Time at large

A brief overview of how a UK legal concept is applied in Canada

T

ime at large is a legal concept from the United Kingdom. In essence, it is applied where the Court finds that a schedule has been so disrupted that the contractor cannot be held to any milestone or completion dates and delay damages are therefore not collectable.

Although it would be fair to say that said legal verbiage or an exact Canadian definition of the term has not been embraced

by Canadian courts, the underlying principles have been considered and this article provides a brief overview of a few examples where time at large has been applied in Canada.

At common law, there is an implied term in each contract that a trade will perform its work within a reasonable time.

What is a reasonable amount of time is a question of fact that would be dealt with on a case-by-case basis. Accordingly, where no schedule is included, time may be found to be at large in Canada from the beginning of the contract.

In that regard, the failure to agree on a schedule after the contract is entered into will not alleviate a party from its contractual obligations, and the court will imply reasonable terms that are necessary for business efficacy, including finding that work was to have been performed within a reasonable period of time.

Where a construction schedule is included in a tender package or contract and sets out the agreed upon time for a trade to complete its work, time may still be found to be at large as a result of the actions of an owner or its agents that delay a contractor’s work.

For example, in Sun Steel Fabricators Ltd., the project schedule called for the trade to complete the structural steel by a certain date, however, the trade did not commence installation until after the agreed upon date and did not

12 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

Paul Hancock

complete its work until approximately five months after the scheduled completion date.i In that case, the court found that there were no damages for delay, as the delay was caused by other trades, inclement weather, construction safety issues; there was also no proof of damages, and the trade completed its contractual obligations within a reasonable period of time.ii Although a number of Canadian construction contracts, such as a CCDC2-2008 Contractiii, contain specific provisions that set out a process for extending the time to complete the work upon proper written notice without putting time at large, time may still be found to be at large where the contractual terms are not adhered to by the owner or consultant.

If a contractor fails to provide notice of a delay in accordance with the contractual terms, it may be prevented from obtaining an extension or a finding that time is at large.

Usually, such contracts require timely notice of a delay by the contractor, which permit the parties to deal with problems as they arise rather than arguing about them afterwards.

Although a contractor may not know precisely what the monetary effect of an accumulation of delays may bring about, early notification of a contractor’s concerns will enable the contractor to be placed in a position to negotiate, and the court will not extend notice period deadlines on the basis that the final quantification of the length of the delay has to be completed at a later date.

Where no format of notice is specified in the contract, courts have held that substance of the notice is more important than its form.

Depending on the contractual terms, if a contractor provides proper notice and an agreement cannot be reached as to how long the extension should be, time may be found to be at large.

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Legal Corner

Depending on the contractual terms, if a contractor provides proper notice and an agreement cannot be reached as to how long the extension should be, time may be found to be at large.

In that regard, where the construction contract gives either the owner or consultant the unilateral ability to recommend or determine what extension of time should be granted to a contractor, such provisions include a duty of good faith upon the owner and consultant to act in a fair and reasonable manner when extending the contract time.

For example, where an owner is given the unfettered ability to either grant or deny an extension and the court finds that the owner is at default, the court would most likely not permit the owner to unilaterally decide whether to extend the contract time and find time to be at large.iv Similarly, if a consultant fails to act reasonably and fairly in granting or refusing an extension of time, time may also be found to be at large. In that regard, the test is not perfection, but whether the consultant’s finding is justifiable.

Although the term time at large is not readily used in Canadian cases, the principles are still applicable in modern Canadian construction law and may be used where: 1. The contract does not contain a schedule; 2. The schedule is frustrated by the owner or its agents and no provisions to extend the schedule are agreed to or contained in the contract; or 3. The contractual extension provisions are not applied in good faith by the owner or consultant.

Accordingly, consultants, contractors, and owners should review and ensure their contracts have delay provisions prior to tender and comply with said provisions throughout the project in order to avoid having completion dates and schedules struck by the court and time found to be at large.

The right mix.

Endnotes i Sun Steel Fabricators Ltd. v. Tremonte Manufacturing Ltd., 2014 ONSC 1333, para. 57. ii Ibid, paras. 58 to 69. iii See CCDC2-2008 Stipulated Price Contract G.C. 6.5. iv See Nordic Construction Ltd. v. Hope Brook Gold Inc. (1991), 287 A.P.R. 201, (Nfld S.C., TD), para.44 , referencing Perini Pacific Ltd. v. Greater Vancouver Sewerage & Drainage District (1966), 57 D.L.R. (2d) 307 (B.C. C.A.) para. 40, where the court noted that extension of time clauses would not include defaults by the owners so as to make them judges of their own cause.

These comments are of a general nature and not intended to provide legal advice as individual situations will differ and should be discussed with a lawyer.

About the author Paul Hancock is a lawyer practising with the construction practice group at Goldman Sloan Nash & Haber (GSNH) LLP. He has acted for owners, general contractors, subcontractors, architects, and material suppliers in complex construction lien matters, contractual claims, and breach of trust actions. Paul offers timely and pragmatic advice to his clients to reach cost-efficient and successful resolutions of legal disputes.

For your legal needs.

The GSNH construction law practice group is highly skilled and experienced. We provide practical advice and solutions in a timely, cost-efficient manner.

We understand the construction industry and we cover all industry sectors. How may we help you?

Visit gsnh.com/practice_areas/construction/ We’re social. Follow Us.

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GSNH

480 University Ave., Suite 1600 Toronto, ON M5G 1V2 P: 416-597-9922 www.gsnh.com

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13

Sustainability Corner

Ego – Please like me

W

e all know that person in the office with the huge ego. When we close our eyes, we can see how they behave and hear their voice – they grind on our nerves. Now, what if I was to tell you that that person is actually you? That is right, having an ego is not reserved for overly confident, brash individuals who have to let everyone know when they enter the room. We all have one and this article will help you understand how yours manifests and how you can learn, with some self-awareness, to understand it, stop letting it control your every move, and use it to help you become a more confident leader.

There are many definitions for ‘ego’ but at its most basic it is a Latin word that translates as ‘I’. It defines our sense of self, who we believe we are, and more importantly: how we would like to think other people see us. Over the years the term ‘ego’ has become synonymous with self-absorbed, narcissistic behaviour and, as a result, has a very negative connotation. In reality we all have egos – in fact, it is impossible to not have a view of ourselves that we hope others share When our views of ourselves, our egos, are reflected back on us by others, we feel at peace. If we believe that we are very knowledgeable and intelligent, having people around us confirm that with nods of approval and compliments helps to support, or stroke, our egos.

The moment that someone challenges our view, questions that intellect, our egos are bruised and we have a choice to make: fight or flight. All too often, our ego defence mechanism kicks in and we defend our position, not taking a moment to reflect on the other person’s perspective. This defence could take the form of an attack, challenging the other person’s intelligence or knowledge, questioning their education or their source of information. An alternative form of defence would be to

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Craig Woodall

rationalize why the opinion of this other person is not relevant, and to categorize their thoughts and views as insignificant. Either way, our ego defence system’s primary role is to confirm that our belief about ourselves is still valid and we are therefore okay and that it is the other person that has the problem.

Once we get our head around the fact that we all have egos – this image of ourselves – the challenge is to start trying to become more self-aware of it. Recognizing the key traits of our egos, how they manifest, and how we react, are the first steps to regaining control. The easiest way to work out how your ego reacts is to look for the telltale signs of your ego defence mechanism. For example, when you are next in a meeting and someone starts sharing an idea you were going to talk about, it is your ego that gives you that feeling of anxiety. Or when you have make that big presentation to your team and someone challenges your conclusion, the hollow feeling that you get and the overwhelming urge to point out that they must agree because you are right… that is your ego too. There is not enough room in this article to identify all of the potential situations where your ego shows up on a daily basis.

However, acknowledging that it does is the first step.

Once our egos have been triggered our defence mechanisms kick in. As aforementioned, we could defend ourselves by retreating and avoiding uncomfortable situations. Maybe we know that will be challenged at a meeting, so we may want avoid the meeting or leave early. One of my personal defence mechanisms is to keep talking in difficult situations. If I continue talking, that prevents anybody else from challenging me and evades potential damage to my ego. It is this kind of ‘off purpose’ behaviour that we engage in on a daily basis. If we can challenge our natural ego reactions and step back, a world of

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Sustainability Corner

alternatives opens and elevates our leadership to a new level.

The best leaders with whom I have worked have not destroyed or killed their ego; they leave that to Buddhist monks who spend years practicing the art. Instead, the best leaders have learned to acknowledge and harness their egos. A well understood and managed ego can actually be an asset for a leader, allowing us to consider all viewpoints without bias and recognizing that there may be another perspective that is equally valid. Another benefit is that while your ego defence is in action, you are not focused on anything else, as it consumes you. As a result, you are not allowing yourself to consider alternatives, be creative, or innovative. Remember that you will never defeat your ego, so do not waste your effort trying.

Instead, focus your attention on recognizing when it rears up.

Challenge yourself by asking, ‘why am I feeling this’, and then laugh at yourself. Acknowledge that your ego is a part of you and, unchecked, it will control you. Remember that

self-awareness is not about fixing all of your challenges, but actually the art of recognizing our behaviours and the impact that they have on our relationships and actions. The more selfaware you become, the quicker you can be at recognizing and responding to your ego and the other nuances that make us human and keep life interesting.

About the author Craig Woodall is the President and Owner of Byng Leadership Inc. He has over 25 years of experience leading teams, projects, organizations and individuals. His passion is Leadership Development, helping people and organizations grow by maximizing their leadership potential.

MEMBERSHIP FEE CHANGE NOTICE Due to the governance restructuring of the organization, you will notice a change in your 2019/2020 CIQS membership fee invoice this coming January.

There will be one National fee and no Affiliate fee portion on your membership invoice.

The new CIQS membership fees are as follows: Professional Quantity Surveyor Construction Economist Certified Associate Retired Full time Students

$500.00 $500.00 $400.00 $50.00 Complimentary

Membership Fee invoices will be sent electronically to all members in late January 2019.

Due date for fees is March 31, 2019. Late fees will be applied after April 1, 2019.

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Note these fees are subject to applicable taxes.

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 15

Construction sector moving toward innovation

Skill shortage and productivity issues propel us forward orget costs saving; heightened employee safety is the real benefit of offsite construction and modularization, stressed PCL Agile’s Troy Galvin and Andrew Fleetwood at the RICS and CIQS 6th Annual Construction and Project Management Seminar – and it’s our shared responsibility to explain the value to our clients.

RICS and the Canadian Institute of Quantity Surveyors (CIQS) hosted a dinner and seminar during the first significant snowfall of the year in the Greater Toronto Area. Despite the closed roads and clogged highways due to slick driving conditions, the room was packed with professionals eager to discuss the benefits and challenges of innovative techniques like modularization, to find out whether the new techniques do, in fact, result in faster and cheaper construction projects.

The event started with opening remarks from Arif Ghaffur BSc (Hons), FRICS, PQS, MCIArb, also the event chair. Following presentations by PCL Agile, the evening’s debate was moderated by Natalie Alexander MRICS, PQS, MSc, who asked, “Why does the construction industry have a challenge with innovation?”

The construction industry is perceived to have had zero growth in productivity or efficiency gains recently, she explained.

Alexander pointed to the McKinsey report A.

that suggested the global cost of low productivity in the construction sector is $1.6 trillion. Lack of progress is blamed on the skilled worker shortage, overregulation and taxes.

How do we bring the younger generations into the construction industry? The answer to Alexander’s question came later in the evening during a question and answer session.

Dr. Diana Nada suggested a change in culture could provide answers by transferring skills on the job. She suggested we recognize the skill shortage and make it a priority to pass knowledge among different groups of people.

“I come from Calgary and most of the time people want to concentrate on the oil and gas industry but the skills are transferable between industries,” explained Nada. “There’s room to learn and we need to work together to improve the skillset of labourers and other employees.”

“Building this culture of knowledge sharing should happen on the job where workers can be provided with opportunities and a platform for people to learn from one another,” she said.

Lack of skilled labour isn’t the only challenge to innovation in construction referred to by Alexander. The

B.

C.

E.

F.

D.

G.

A. Arif Ghaffur BSc (Hons), FRICS, PQS, MCIArb. B. Natalie Alexander MRICS, PQS, MSc. C. Andrew Fleetwood.

D. Question Period.

E. Troy Galvin.

F. Panel of Experts. From left: Amir Kia, Dr. Diana Nada, Andrew Fleetwood and Troy Galvin.

G. Volunteer Award of Excellence. From Left: Arif Ghaffur, Bill Nichols, Amir Kia and Natalie Alexander.

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construction industry is a conservative sector that doesn’t like inefficiencies, which makes the industry slow in adopting unproven methods.

“Innovations and technologies, though well intended, come with pros and cons,” argued Alexander. Lack of incentivization and procurement issues can also stand in the way of progress.

But despite the industry’s hesitation to adapt, Alexander expressed hope and a challenge to the seminar’s attendees.

“We form part of a $10 trillion global economic contribution and there’s still room to tap into $1.6 trillion if we seek out the challenges, use innovative methods of working and still ensure we’ve lowered our environmental impact,” said Alexander.

PCL uses facts to dispel preconceptions Troy Galvin and Andrew Fleetwood of PCL Agile presented case studies on the use of offsite construction for two projects at MacKenzie Vaughan Hospital where they installed 290 washroom pods that were 98 per cent complete when delivered, and plenums where everything was installed in the shop and ready to go before installation at the hospital.

One of the challenges they raised was that the offsite construction of both projects was not considered at moment zero in the design. Rather, the projects were designed in the traditional way. Galvin noted that a modular design could be built with traditional methods but not the other way around. Determining whether a project is a good candidate for offsite design should be done at moment zero – something he referred to as utopia.

Galvin suggested getting everyone on board comes by using scrums and workshops effectively throughout the project, and that leadership must all be on the same page. “Get all the decisionmakers in the room to embrace offsite construction,” said Galvin, “It’s our duty to inform our clients that we can do it better and do it faster, offsite.”

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Taking attendees through the two case studies made a few things clear and spurred a number of questions from the audience. When comparing the costs of traditional builds with offsite construction, it’s clear that offsite is not always cheaper. “It could be cost neutral or more expensive,” explained Galvin, “But we saw the value in doing it offsite.”

Bringing innovation forward PCL Agile’s case studies brought up a number of questions for the debate, which was led by Alexander and included Diana Nada PhD of Colliers International, Amir Kia of York Group of Properties, Troy Galvin and Andrew Fleetwood of PCL Agile.

The prevailing question for debate was how does the industry move forward in adopting innovative techniques and solving productivity challenges? Nada suggested the solution comes through exploring case studies such as the ones PCL brought forward and learning from each other.

“How do we make those decisions at moment zero?” Nada asked, “Convince the clients we need to do it at the front end? This is key to the success of the project. The cost is the same or higher but there are always ways to find improvements on costs.”

With informed decision-making at the beginning of projects, challenges can be faced early to save time and costs. With an improvement in pre-project planning, productivity issues can be solved.

Those in attendance were keen to question Galvin and Fleetwood on their case studies. Galvin explained that convincing unions to accept offsite construction was no different than explaining the benefits to other stakeholders.

The key is to make sure everyone understands what’s involved in the project. He stressed the biggest benefit CLICK HERE to return to Table of Contents

of offsite construction from PCL Agile’s perspective is increased worker safety.

This is a priority the union shares with PCL Agile and their clients.

“There are risks and opportunities,” agreed Nada. “Tell the client that there will be risks, and these are opportunities.

Know how much risk they’re willing to take and allocate risk management strategies to match client strategies.”

Nada stressed that everyone is working toward the same goal and aims to achieve their budgets.

The panel was in agreement that innovation is necessary. The key to adoption is to get agreement from all stakeholders early in the project, and to maintain that agreement with regular

communication throughout the project.

The evening concluded with the annual volunteer award of excellence which was presented to Professor Bill Nichols M.Sc., PQS(F), PLE, GSC, AIC, FCIOB for his contribution to Quantity Surveying and the advancement of professional excellence.

About the author Amie Silverwood is the Content Manager, Communications and Media for RICS.

CONSTRUCTION AND PROPERTY CONSULTANTS

Core Two has job opportunities in our Cost Planning department for Senior Cost Consultants.

Candidates must have: At least 5 years of relevant experience in the construction industry; Strong communication skills; Strong technical skills; Time management skills; RICS/CIQS membership.

We offer an extensive employee package commensurate with expertise, qualifications, skills and potential for growth.

If you are interested, please submit your resume/CV to contact@coretwo.ca. www.coretwo.ca

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 17

CHANGING PLANET A N D T H E B UILT E N V IR O N M E N T There have been numerous discussions on how the construction industry is a major contributor to greenhouse gas (GHG) emissions and waste production.

However, the factors of Earth’s increasing population size and of the over-use of resources both play key roles in placing a greater strain on our planet as it is impacted by modern living. Instead of focusing on how the built environment affects our planet, our focus should be on how our changing planet will influence how we build.

Due to irresponsible planning, fossil fuels usage, and exploitation of resources, glaciers are melting and causing sea levels to rise. As well, wildlife is being threatened and is diminishing; the ocean is acidifying due to absorption of excessive CO2; Coral reefs are dying; and mercury pollution in the oceans from coal-fired plants is poisoning our food supply.

Current NASA data on vital signs of the planet shows the following: • Carbon dioxide levels in the air are at their highest in 650,000 years (409 parts per million).

• Seventeen of the warmest years on record have occurred since 2001, and the global temperature has increased 1.8 degrees Fahrenheit since 1880.

• Arctic ice has been decreasing by 12.8% per decade.

• Satellite data show that Earth’s polar ice sheets are losing mass by 413 giga tons per year.

• The global average sea level has risen nearly 7 feet (178mm over the past 100 years) at 3.2 millimeters per year.

Studies have also found that civilization’s appetite for natural resources, such as water, clean air, and raw materials, are outstripping the planet’s ability to regenerate and renew. Excessive extraction of raw materials, for production of goods and materials to meet demands of an increasing world population, is placing a strain on the Earth’s resources.

Global warming and over-use of natural resources without considered replacement are modifying our climate, resulting in a rise in extreme weather events such as hurricanes, heavier rainfall, wild fires, and destructive storms.

PREPARING FOR CHANGES Within the construction industry, action is being taken to mitigate planetary impacts through various measures (such as waste segregation); focus on the three Rs (re-use, reduce, recycle); building for climate resilience through Passive House; more intensive building codes; and other environmental standards such as LEED, and the Living Building Challenge. The construction industry

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has made leaps in minimizing wastage, reduced energy usage, and greenhouse gas emissions, supported by government and other associations. However, it has to be considered that we have perhaps reached a ‘tipping point’ and, although we are making changes, there is the potential that we cannot fully rectify the damage already done. In spite of all good intentions to turn things around, the industry may need to be prepared to face these changes.

The construction industry will be affected in the following ways: CONSTRUCTION DELAYS Productivity delays will result from extreme and unpredictable weather – e.g. rain and cold temperatures are not ideal conditions for concrete pours – which invariably result in construction delays and a rise in disputes and litigation. While contractors can obtain non-compensable time extensions, clients sometimes include supplementary conditions that preclude award of extra time for adverse weather conditions. Increasingly, extreme weather conditions will be commonplace, so contractors will need to change their business plans accordingly, and developers are going to have to factor in delays with regards to revenues – essentially weather risk management.

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CHANGE IN DESIGN There will be continued implications on energy demand due to increased temperature fluctuations – it is predicted that energy used worldwide for cooling will outstrip heating by 2060. Over the next 30 years, the installation of cooling equipment will increase dramatically, so mechanical services designs may find much more energy usage is for cooling rather than heating. The focus so far has been on reduced electrical use to reduce emissions and renewable technologies for electricity generation, but little investigation has gone into technologies to provide green designs for increased cooling capacity.

LABOUR Common building strategies and materials suit specific climates, design, and planning align with local weather or geography, and construction teams work outside in the elements. Therefore, it is important that resilience to weather is built into the risk. Labour will always be an issue within an industry that needs a large, skilled, labour force for projects.

As a side note, an aging workforce with limited young people interested in entering the field has always been an issue. So, how does our changing planet affect labour? With more extreme weather there is destruction of homes and infrastructure, and labour moves to deal with demand.

An example is the Fort McMurray fires in 2016, where labour migrated back to Alberta due to rebuilding of homes.

This had an impact on British Columbia, which had been relying on this labour and caused labour shortages and subsequent increased costs.

MATERIALS Extreme weather contributes to material shortages and timely delivery. Flooding, droughts, and storms can also cause problems in sourcing materials, e.g. flooding in areas that provide natural resources for construction materials can cause shortages. Also, wild fires have had an adverse impact on the CLICK HERE to return to Table of Contents

forestry industry and lumber supply. In 2017 alone, wildfires in BC claimed a year’s worth of lumber in the province, restricting domestic supply as well as the ability to support others – for example where US homes are being destroyed by hurricanes and tornadoes, and materials are needed – adding upward pressure on lumber needed for rebuilding.

With an increasing world population and cities ballooning, we have continued to draw upon the Earth’s resources for construction. Sand, an essential ingredient for concrete, is running out.

After water, it is the most consumed natural resource on the planet. Sand was typically extracted in land quarries and riverbeds, but these inland resources have been depleted so extraction has moved to marine and coastal areas.

Unfortunately, our abundant desert areas cannot be used as their sand is fine-grained and has low shear strength.

Sand is also being extracted from ocean floors, which causes further issues with sand from surrounding areas and beaches then sliding to fill gaps, causing disappearances on beaches an d, in more extreme cases, entire islands.

With our continued extreme use of the Earth’s resources and the desire to building higher and bigger, where concrete is the main material, the construction industry may need to consider alternatives such as recycled building materials, and perhaps looking at existing stock to deal with burgeoning housing demands.

EQUIPMENT Weather conditions can also affect the performance and deterioration of construction equipment. Strong winds can put a strain on equipment, and dry weather can increase dust on the job site, which can put a strain on inner machinery. Productivity is also affected, e.g., muddy conditions slowing down equipment thus causing schedule impacts.

Construction companies will therefore have to change equipment procedures to deal with changing weather patterns, and factor these risks into project planning.

CONCLUSION Our reality is that the construction industry has to respond to our changing planet, through both mitigation and adaptation – making a significant contribution to stabilizing global warming, limiting use of natural resources, and adapting to the changes already in the pipeline. According to NASA, even if the entire planet stopped emitting greenhouse gases today, global warming and climate change will continue to affect future generations. Our burgeoning population is an ongoing fact and greater consideration needs to be given to how we use resources sparingly – and not overshoot the planet’s ability to renew.

The construction industry can address these issues through greater investment in innovation and research, continued education in low and net-zero design, and continued lobbying for sustainable practices.

About the author Angela Lai, FRICS, PQS, LEED AP O+M is the Managing Partner of Core Two, a property and construction cost consultancy based in Vancouver, BC, and is on the instructing team for Passive House Canada. Angela has over 17 years’ experience in the construction and development industry spanning South Africa, the UK, and Canada. Angela’s experience is diverse having worked as a cost manager, loan monitor, and a management consultant, and having specialist expertise in sustainability, life cycle and FM costing. She is the current past President of CIQS – BC, past Director for the CIQS National Board and Vice Chair of the RICS BC chapter. She also teaches at BCIT and for the RICS training hub.

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 19

Security of payment in Canadian construction projects It has been said that money is the blood of the construction industry. There are four basic elements of a contract to be enforceable by the courts: an offer, acceptance, intention, and consideration. Consideration is ‘either some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility, given, suffered, or undertaken by the other’ (Currie v. Misa (1875), L.R. 10 Ex. 153, at p. 162). Each party to the contract must receive consideration. In a building construction contract, the owner gives the primary consideration, which is the promise to pay the contract price in exchange for constructing the building (Samuels B. & Sanders D., 2011). This article highlights common types of contracts and reviews the payment application process and available options for the security of payment in the Canadian construction industry.

Types of contracts: Contractors and other partners in the supply chain in the construction industry naturally would like to be treated fairly and receive agreed-upon prices. As payment is the prime mover in any business, the contract drafting and reviewing processes are essential. Contracts allocate risks to each contracting party; these risks are managed differently depending upon the contract type. Building construction contracts can be stipulated contract price, unit price, cost plus, or standard forms of contracts.

Under the stipulated contract price, the contractor agrees to execute the construction work for a fixed, lump sum price.

If a contractor underestimates some work items, it will not be entitled to any extra money. As a result, in the absence of contract changes approved by the owner, the contractor will eventually receive only the stipulated contract price. Changes during construction are a significant source of cost overruns.

Hence, for this type of contract it is important that the scope of work is clearly defined; the specification is well detailed and free from contradictions; the agreement and contract clauses incorporate lessons learned in the industry; and a cost breakdown is well detailed to show the inclusions and exclusions. Although it is good practice to use a standard form of contract, every project has its own special requirements, meaning that special conditions have to be well written. Under the stipulated contract price, progress is measured on the basis of percentage of completed activities and/or quantities of work completed and materials delivered to the site.

Under the unit price contract, the contractor performs the work for pre-determined unit rates for each work activity/ item. Because of uncertainties in the total quantities of work, the final contract sum usually is finalized at the end of the project based on field measurement of the actual work CLICK HERE to return to Table of Contents

performed. The owner bears the risk of the project cost being higher than its budget, whereas the contractor bears the risk of the accuracy of its fixed unit prices. A significant source of cost overruns for unit price contracts is errors in the estimated quantities.

The cost-plus contract approach is subdivided into two types of contracts: cost-plus/percentage fee, and cost-plus/ fixed fee. Under the cost-plus/percentage fee contract, the parties agree that the contractor will be reimbursed the actual direct costs of doing the work, as well as a specific percentage of that cost for overhead and profit. This is one of the types of contract that requires an increased amount of bookkeeping. The cost-plus/fixed fee contract also is paid on a direct cost basis, but the overhead and profit is paid as a pre-agreed, fixed fee.

The contracting parties can use standard forms of contracts or ad-hoc (bespoke) contracts. The main advantages of using standard form of contracts are: – The contract is developed by a wide range of industry experts, which ensures fair allocation of risks among the contracting parties.

– Stakeholders are familiar with the contract’s general conditions, which can save time during the project phases, especially initiation phase.

– Courts have tested standard contract clauses, so it is easy to find comparative case laws that allow the parties to understand the courts’ interpretations.

The types of contracts discussed above display the requirement for a contract team to carefully consider the appropriate type of contract for a given project. Contracts are not to be one-size-fits-all; rather they must be tailored to the specific needs and requirements of each client and their project.

Payment administration and process One of the main features of a construction project is that it is of a temporary endeavor; duration depends on the complexity and nature of the project. Some projects may take a few days while other projects may take years. Contractors, subcontractors, suppliers and others who are involved in the supply chain cannot survive without consistent cash flow. A construction corporation could go out of business due to lack of cash flow. Therefore, it is not unusual for those who are included in the construction industry supply chain to have their work progress payments on a monthly basis. Conditions of the contract stipulate the payment application process. For Instance, part five of the Canadian Construction Document Committee CCDC-2 Stipulated Price Contract, stipulates the procedure for contractor payment application. Clause 5.2.4 Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 21

directs the contractor to prepare a schedule of values that is to be approved by the Architect in advance: “The Contractor shall submit to the Consultant, at least 15 calendar days before the first application for payment, a schedule of values for the parts of the Work, aggregating the total amount of the Contract Price, to facilitate evaluation of applications for payment.”

Likewise, Clause 5.1.2 of stipulated price subcontract – Canadian Construction Association states that: “The Subcontractor shall submit to the Contractor, at least 20 calendar days before the first application for payment, a schedule of values for the parts of the Subcontract Work, aggregating the total amount of the Subcontract Price, so as to facilitate evaluation of applications for payment” Schedule of values Unbalanced schedules of values/Front-loading schedule of values A schedule of values is a breakdown of the work components with an estimated value assigned to each element. The contractor is required to coordinate with subcontractors to secure their work schedule of values. Subject to the consultant’s approval, this document is the basis for the contractor’s payment applications.

The key base document for the payment is the schedule of values. It is good practice that the consultant spells out the format, supporting documents and level of details required, before the contractor’s first application for payment.

To reduce the risk of overpaying the contractor and subcontractors, the schedule of values must be as accurate as possible, and it is subject to the scrutiny, challenge, and finally the approval of the consultant. If this schedule were frontloaded, the contractor and subcontractors would receive their payments in advance, which would be unfair to the owner. A contractor who front loads a schedule of values (for contract work) may attempt to convince the consultant approving such schedule that the monthly payments are interim by nature and that the contract sum cannot exceed the stipulated price at the end of the project. This is a biggest risk of a front-loaded payment schedule. Although it is interim, it increases the potential for disputes. It is important to highlight that as long as the project goes well, all parties are happy. However, if for whatever reasons a dispute arises in the project, all parties will refer to the contract. It is essential that the monthlycertified payments are in accord with the actual progress of work on site because, if for any reason the work is suspended or the contract is terminated, the owner should not be found to have overpaid the contractor. Ultimately, the owner will be reimbursed for the overpayment from the performance bond.

It is worthwhile mentioning that the payment application includes the value of the work performed to-date, the material procured and delivered to the site, and any agreed percentages, change orders, and change directives. There is a distinct difference, however, between payment application and contract-adjusted price, which does not include change directives. Disputes on these items definitely affect the 22 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

amount of payment certified. The skills and knowledge of the consultant reviewing the schedules of values are essential to ensure the integrity of the payment certification process.

Current Security of payment under the contract and the law The success of a construction project depends on the timely flow of money from the owner to the general contractor and subsequent parties involved in the project. The time frame for the payment process is usually provided in the general conditions of contract, and particularly in the payment provisions. It starts with payment application to the consultant, where the consultant has a specific time set to review and certify the payment to the owner. The owner thereafter will release the payment to the general contractor, within a contractual set timeframe. To ensure the payment flow between the parties involved in the construction industry, there is a combination of legal and contractual requirements, which, if satisfied, will reduce payment problems in the construction industry. They are as follows: – A Builders’ Lien provides protections for the general contractor, subcontractors, and suppliers performing work on the land.

Delayed payments to any of the aforesaid, provide the right to hold the land until payment is received. It is not a direct process to register a Lien, and it doesn’t guarantee payment (Ross McLennan, 2012). In compliance with the construction lien, the owner is usually required to retain 10% of the total value of work performed and materials delivered to the site as a holdback; this is not a penalty. The holdback can be released after the issue of a certificate of completion by the consultant and receipt of a statutory declaration, usually within 90 days of publishing the project’s completion in a newspaper.

– A further provision in some standard forms of contract is a requirement for the owner to provide evidence to the contractor that it has the financial capability to fulfill its payment obligations under the contract.

– A contractor may transfer the risk of delay in the payment process to the subcontractors by incorporating a pay-whenpaid provision. If the payment clause is worded clearly, it means that the owner’s payment to the general contractor is a condition precedent to payment to the subcontractor i.e. the subcontractor has no right to be paid until the contractor receives the corresponding payment from the owner.

Canadian courts have been inconsistent with their judgments concerning this clause (Cardinal Contracting Ltd. v. Seko Construction (Vancouver) Ltd., 2017 YKSC 51). Furthermore, the contract usually stipulates that the contractor is obligated to submit a statutory declaration to confirm that all payment obligations incurred by the contractor and subcontractors have been satisfied. The primary purpose of the statutory declaration document is to ensure that all due payments to the entities involved in the execution of the project are paid.

It is worth mentioning that is not always required by the contract to submit the statutory declaration with the progress payment. For example, in CCDC Conditions of Contract, it is required to submit the declaration form with the progress or final payment application.

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The main principles of the new Act are a prompt payment regimen together with a mandatory adjudication process. The aim is to establish an efficient mechanism to ensure that money flows down the contracting chain.

– A security provision in the contract is the contractor’s right to suspend the work or terminate the contract if the owner fails to pay the contractor (conditions and precautions apply).

– A Labour and Material Bond, which is a guarantee that the prime contractor will pay the subcontractors if Bond conditions are fulfilled. The Bond conditions include an allowance for the claim to start 90 days after the date a subcontractor or supplier supplied or performed material or labor to the project in addition to notice requirements.

The main challenge is the process and proving the claim is time consumer.

– A Performance Bond is another protection tool, which protects an owner financially if the main contractor failed to complete the work, by financing the value of the remaining works up to the bond value. It is common for an owner to request the Performance Bond, and Labour and Material Bond on a project.

Despite the above-mentioned measures, we still face problems when it comes to payment flow. Therefore, as available in other parts of the world, Ontario has introduced its new Construction Act, which received Royal Assent in December 2017. The main principles of the new Act are a prompt payment regimen

together with a mandatory adjudication process. The aim is to establish an efficient mechanism to ensure that money flows down the contracting chain.

About the author Mahmoud Bader, MSc., P.Eng.,PQS, LEED G A, PMP, is an Engineer and Quantity Surveyor with more than 15 years of experience in design/ construction management of sustainable built environments. He has worked on variety of complex and innovative projects, focusing on commercial, residential, and water pipelines. Moh is registered with APEGA as Professional Engineer and registered with Canadian Institute of Quantity Surveyors as PQS, certified as Project Management Professional and LEED G A. He works at NAIT as an Instructor in Bachelor of Technology in Construction Management. He also recently incorporated a company in Alberta: Beam Engineering & Construction Management Consulting Services Ltd.

QUANTITY SURVEYORS, ESTIMATORS, PLANNERS A leading Cost Consulting and Project Management firm requires the following candidates for its Montreal and Ottawa offices: Junior, intermediate and senior level Q.S.’s, Estimators and Planners with experience on: • Commercial and institutional projects • Industrial projects (oil/gas, refineries, mining, metallurgical).

We offer competitive salaries, benefits, training and potential for growth. Relocation assistance will be provided.

We sincerely thank all applicants, but only those candidates which meet our requirements will be contacted.

Please send resume in strictest confidence to: LCO - Construction and Management Consultants Inc. Fax: 514-846-8913 | Phone: 514-846-8914 | E-Mail: MONTREAL@LCOGROUP.COM

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Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 23

The pricing of cranes

Salient considerations of a Prime Contractor Introduction Tower cranes are unarguably the most visible features of industrial and high-rise construction project sites. They often account for a significant portion of the indirect costs and in most cases are considered the most invaluable assets in the execution process. It is therefore important to ensure that the pricing and planning for the eventual usage of this item of work is properly thought-out in order for the project to be cost-effective.

Enduring trends of trade specialization and other dynamics of the construction industry have meant that most construction contractors rent, rather than own, tower cranes. The scenario is usually such that the bulk of the responsibilities and risks in this work item are passed-down to the crane owner or subcontractor. It is however very important for contractors and crane users to learn as much as possible about all the cost components of tower cranes as a work package, so as to ensure adequate value for money.

Primary Considerations Rental Costs Though rental rates are usually monthly, the estimator has to determine whether an hourly or daily unit rate would be more cost-effective, depending on the intended pattern of usage of the crane, so cost negotiations should be conducted as such.

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Mobilization and Demobilization Cost provisions for mobilization and demobilization should cover transporting equipment from source location to proposed site, erection, commissioning, decommissioning after project completion, dismantling, and transporting back to source location. All incidental costs of labour, specialists, equipment, materials, fees and permits associated with mobilization and demobilization and required to complete the process should be taken into consideration. Further consideration in this regard would be the space that will be available on site for erection and dismantling of the tower cranes. Planners might possibly consider sequencing the job to create adequate room during the erection and dismantling operations.

Tower Crane Base In providing for tower crane bases, it is important to note that there are three aspects to this item: design, construction, and temporary works required for the construction. Crane base design is offered by most Engineers, so budgeting and hiring competent hands are relatively easy; however, costs obtained should include professional design fees and government approval fees (if any). Additionally, the estimator should take note of the considerations that normally precede tower crane base design, which include: soils tests; investigations to reveal To return to Table of Contents CLICK HERE

underground obstructions, underground power and gas lines; and soil conditions that will generally determine the type and size of the foundation and, in some cases, the construction delivery strategy.

Crane base construction might be executed by the general contractor, or its concrete subcontractor, or it might be separately subcontracted to a smaller subcontractor that has lower overheads and possibly lower profit margins.

Crane Operators and Riggers Crane operators must have had adequate training and possess certifications that are acceptable to the regulatory authorities within the jurisdiction of the project, and specific to the types of cranes being deployed on the site. Depending on the number of cranes on the site as well as the duration of the intended project, it is good practice to make provisions for one or more standby operators. The planner or estimator has to make a sound judgement in this regard.

As with the crane operators, riggers must have had adequate training and possess certifications that qualify them to perform rigging tasks and operations. Ideally, each crane operator will require a minimum of two riggers on typically large industrial sites.

Other Primary Considerations Other important, cost significant and primary considerations include: 1. Radios for communication, including crane-to-crane requirements and crane-to-rigger operations. Estimators should also provide for spare batteries, chargers, foot pedal switches for crane cabins, warranties, radio licensing, and permits for operating tuning frequencies.

2. Written policy/procedures for multi-tower cranes coordination, which should include specific plans and procedures for zoning, rigging, lifting, and communication.

3. Hoisting accessories and auxiliary lifting equipment required for the project. Knowledge of the planned operations requiring the use of the tower cranes will provide an idea of all the different hoisting accessories and lifting equipment that will be required and provided for in the estimates.

Examples include sling hardware, hoist rings, plate clamps, sling racks, shackle pads, brick and block cages, first aid and ambulance cages, kibble buckets, rubbish bins, and man boxes.

4. Power supply for tower cranes is largely dependent on the power supply strategy for the entire project. If the project opts to tap temporary power from public supply, this arrangement will often provide enough power supply and installations to cater for the needs of the tower cranes; in which case, the estimator is only expected to provide for final connections to the cranes (where necessary). The alternative is the use of generators, which include purchase or rental costs of generators of required capacity, generator bases, fueling as well as repair and maintenance of the generators throughout the intended period of usage.

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Standard and Regulatory Considerations Safety Considerations Tower crane safety requirements are extensive and demanding – for good and obvious reasons. The height at which tower cranes operate, the complexities of coordinating the activities involved, and the long history of associated incidents, accidents, and fatalities have necessitated the serious attention given the safety of tower cranes and their operation.

Most state and provincial governments in North America place a very high premium on crane safety. Lots of standard documentation, procedures, training, inspections and the like are mandated for compliance.

When pricing and planning the use of tower cranes, it is very useful to identify and review all the safety requirements pertinent to the project’s location. Loads of man-hours and other resources will go into training and retraining of crane personnel, obtaining permits, ensuring the flow of relevant inspections, documentations, etcetera, so it is important to provide for the costs of implementing these considerations.

Generally, the measures for enhancing safety of tower cranes would include: 1. Checking before the erection of tower cranes including pre-delivery checks, checking of anchorage, and checking of supporting structure. It is important to note that most regulations require the checks to be carried out by qualified personnel, the level of which varies between locations, and has to be in line with standard procedures, as well as cranemanufacturer procedures.

2. Improvements of site supervision. This includes appointment of a supervising engineer who will conduct risk assessment before all crane operations and will ensure that all necessary checks, verifications, inspections, and maintenance are carried out.

3. Qualifications and experience of specialist contractors, competent persons, and workmen, including the crane operators, riggers, supervisors and servicing/ maintenance personnel.

Other safety requirements worth considering include: a. Fire extinguisher and extinguishing systems. b. Automatic safe load indicator – a device fitted to a crane that automatically gives an audible and visible warning to the operator that the crane is approaching its safe working load, and that automatically gives a further audible and visible warning when the crane has exceeded its safe working load. c. Wedges for securing the tower within tie frames or climbing frames of a tower crane. d. Working space limiter to prevent the load, its attachment or any part of the tower crane from entering an overlapping zone. e. A documented safe system for every lifting operation prepared and endorsed by the owner/contractor, with advice of the competent person, safety officer, and other personnel. f. Noise and environmental restrictions in some jurisdictions could also be a cost factor. Tolerance for diesel and electrically powered engines varies depending on the location Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 25

of the project and the nature of the site because of the noise of the engines and the emissions they produce. Sources of cost could be regulatory fees, emission charges, reduced hours of operations etc.

Risk Assessment and Insurance Considerations Normal industry practice is that tower crane users are in most cases solely responsible for keeping the equipment insured against all risks of loss or damage, especially when they take over the responsibility of crane operations from the owner.

The prime contractor’s estimator should note that equipment insurance costs are a factor of the value of the equipment, hence a sound judgement should be made on whether or not a used tower crane for instance, which is obviously cheaper, will be relied upon instead of a new one.

If the crane is to be delivered, setup and commissioned by the equipment owner, which is the path followed by most projects, then the prime contractor should ensure that the equipment owner provides for insurance to cover those operations for which the owner is responsible.

Preventive and Corrective Maintenance Preventive maintenance requirements are detailed in manufacturers’ brochures. It is advised that crane users are furnished with adequate information in this regard to ensure strict adherence to manufacturers’ instructions. Corrective maintenance on the other hand is addressed on an as-needed basis depending on the fault that develops in the course of using the crane. Usually, cost provisions or maintenance of tower cranes are either captured in the rental rates, or provided for as a separate service by the crane owner, manufacturer or end user, depending on the type and complexity of the crane.

Whatever the case, the estimator should ensure adequate provision for this cost item.

Tests and Inspections Several jurisdictions require different types of tests and inspections for crane usage, so it is important to first determine the statutory requirements of the location where the crane will be used These would typically cover pre-erection, post erection, and periodical requirements.

Non-destructive tests on tower cranes are common to all jurisdictions in North America. It is generally an annual requirement, so the duration of the proposed project for which the crane is procured should be taken into consideration.

Taxes, Fees and Permits Taxes and fees are very important cost adders but quite easy to erroneously leave out of estimates. The estimator needs to find out and make provisions for all taxes applicable to the locations in which cranes will be used, including PST, GST, and other relevant statutory taxes.

Most locations also require certain permits for related activities such as transportation of heavy equipment and 26 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

materials on highways, erection of cranes, and even display of promotional signage on cranes, amongst other activities.

Obtaining these permits normally comes with fees and charges that must be provided for in the estimates.

Technical Considerations Size and Capacity Considerations Key decisions in constructability and implementation of sequencing strategies during construction planning can be the difference between huge cranage costs and considerable savings on projects.

For instance, a construction team might decide in its plan to break down elements of a structure to light weights in order to allow the use of smaller, more economical, and more common tower cranes.

Technical strategizing such as this often required a great deal of experience and knowledge of the construction processes and expected outcomes. While the first option in the forgoing paragraph presents the seeming advantage of working with tower cranes with lesser risk (because they can be easily sourced and are also less expensive due to the market competition), points of concern might include the need to deploy more towers cranes as a result of lesser swing radius, especially on project sites of horizontal nature. This in turn might mean more manpower to run the operations and a more intense coordination of the crane/rigging programme, both of which will add to the cost.

The latter option will logically boost the project schedule with fewer cranes, fewer operators and of course fewer elements to lift. However, securing this class of cranes depends a great deal on the reliability of the project schedule. Since these cranes are uncommon and highly sought after, a slip in the project schedule might be a heavy blow to the project. This is because the project will be faced with the options of: either commencing the rental payments of these cranes to secure their availability until they are actually needed, as re-procuring similar ones might be a heinous task; or changing the cranage strategy altogether to the use of cranes with lesser capacity, which like the former option will negatively change the dynamics of the project in terms of cost and time.

Anti-Collision Systems Anti-Collision Systems are devices that are configured to slow down and stop cranes when travelling towards other cranes and structures. These are essential on industrial sites with multiple cranes and numerous activities running concurrently.

If the usage of an anti-collision system is contemplated, the crane user should ensure that what will be purchased is compatible with the cranes that will be used on site and contains all the components that the system requires to function effectively. This would normally include anti-collision and zoning system, display units as required, and a supervisor.

The cost allowance provided for anti-collision systems should cover purchase or rent (whichever is more economical), To return to Table of Contents CLICK HERE

installation, calibration, and servicing (which will all be performed by an anti-collision installation specialist).

Other Technical Considerations An experienced estimator and/or crane user is expected to think outside the box in relation to the peculiarity of the proposed project in order to come up with technical strategies that will reduce the cost of cranage on site. Cost saving opportunities will come to the fore if the right decisions are made on scheduling strategies, crane selection criteria, planning of the operations, planned usage hours, hook utilisation versus labour and time, height of tower or mast required, jib length, and tail swing in relation to fixed obstructions on or near the jobsite such as power lines, buildings, bridges, future obstructions, etc.

In assessing the effects of all the aforementioned, it is important to note the different types of tower cranes that are available for consideration (luffing jib, self erecting, and hammerhead), their characteristics, advantages, and disadvantages in relation to the nature of each job site. It is also very important to identify and understand the requirements of stakeholders of the project, especially the client, city and project facilitators, because these may also restrict usage and operational capabilities.

Supplementary and Optional Considerations Aviation Lights Regulations normally require that airspace-occupying tall structures, such as tower cranes, carry aviation lights to be visible. It is important to know the local regulation in this regard. Considerations would include cost of purchase or hire of aviation lights, installation, servicing, and maintenance.

Product suppliers will provide information on servicing and maintenance requirements, intervals, and extent of work to be done. These affect costs.

There are also optional accessories for aviation lights depending on the project requirements; flashes, photocells, relays, and battery back-up systems, are all up for consideration when pricing.

For the light bulbs, it is useful knowledge to note that LED lighting saves more money as compared to incandescent bulbs, as it consumes less energy and requires less maintenance.

Signage Signage is generally used to promote brands and to boost awareness while the project progresses. It is the sole discretion of the Prime Contractor to determine early enough in the planning stage of project cranage whether or not placing signages on the cranes will be a necessary undertaking, so that a cost can be established for it and captured in the tower crane estimate.

Security It is expected that security measures will be employed to prevent access to and climbing of tower cranes by CLICK HERE to return to Table of Contents

unauthorized personnel. This might include installing security hoarding/access gate around the foot of the crane base, or blocking off the bottom of the climbing ladder on the tower crane shaft. The choice will logically be a factor of the space available on the construction site.

On very large industrial sites where an enormous number of tower cranes are installed, it might be a worthwhile consideration to use security personnel to physically monitor and restrict access to tower cranes by unauthorized personnel throughout the duration of the project.

The decision on the security measure to be adopted should be made early and the associated cost included in the tower crane estimate.

Conclusion The above considerations are sufficiently comprehensive enough to provide adequate and effective reference for estimators and project planners for the use of project tower cranes.

As earlier stated, the greatest responsibilities and risks associated with tower cranes, in a conventional construction setting, lie with the equipment owners or tower crane subcontractors. This scenario however, varies enormously from project to project, depending on the delivery strategy and the extent to which a project seeks to explore cost-saving options in every single package of the project.

Whether the prime contractor opts to perform some of the associated services of the tower crane package, or decides to push the entire risk to the equipment owner or subcontractor, what is most important is that every cost item associated with the tower crane package is identified, and adequately provided for, during the pricing and planning stages of a proposed construction project.

About the author Gabriel Effiong Esu (BSc, MSc, PGD, PQS) is a Senior Quantity Surveyor with Acciona Infrastructure Canada Inc., a global provider of sustainable solutions for Infrastructure and renewable energy projects. He is currently engaged in commercial and contract management on the North Shore Waste Water Treatment Plant, a $700M Infrastructure project in North Vancouver.Gabriel has extensive experience in construction estimating, contract administration, and subcontract procurement and management. In the last 13 years, he has worked on major high-profile construction projects mostly with Marlum Nigeria Limited, ITB Nigeria Limited, and ACCL Group Limited (Ontario). Gabriel holds a BSc (Honors) in Quantity Surveying, MSc in Construction Management, and a Post Graduate Diploma in Civil Engineering.

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 27

INDIGENOUS AWARENESS – Part 2 of 4

A Status Quo that HURTS US ALL The Indian Act is clearly out of step with the modern realities of the Canadian legal system. It singles out First Nations peoples and gives control of their lives and communities to your federal government. First Nations women living on-reserve (until just recently) have not had even basic property rights, because of the Indian Act imposed upon them.

Only in the past year have First Nations peoples become eligible for protections under Canada’s Human Rights Act. Why do Canadians support this nonsense?

The answer is that Canadians have no knowledge about these things.

The sharing of “state secrets” with the electorate of Canada has been a genuine delight.

Many First Nations people believe the Indian Act should be abolished, because it violates normal standards of equality and freedom. It has been referred to as an ‘apartheid law’ that has led Canada to what seems like a perpetual unending national social disaster and encourages the everpresent ‘us versus them’ mentality.

50% of First Nations people are under 23 and many young people leave their home communities looking for better living conditions, safety, health

services, education and employment.

They want to leave behind much destitution, crime, poverty, and despair that exists there. Unfortunately, they are also leaving their family members, friends, their Elders, their languages and their cultural roots.

In urban centres such as Edmonton, Winnipeg, and Calgary, about 20% of the homeless are Indigenous peoples.

They have made a decision to find opportunities, including higher education facilities, housing, employment, and better access to medical services, to name a few. Much of this has to do with the physical isolation and lack of opportunities in their largely remote and impoverished communities.

Since 1998, your federal government has spent about $200 billion of Canadian taxpayers’ money on roughly half of the Indigenous population. This money comes from numerous federal departments, plus Indigenous Affairs, and there are only a few measurable results showing circumstances and quality of life for peoples have improved.

All measurable indicators, in fact, clearly show a continuing decline in the quality of life for most Indigenous peoples and their communities.

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One exception is the number of Indigenous post-secondary graduates, which has increased from about 800 in 1976 to well over 150,000 in total, up to 2018. This year there are 50,000 Indigenous students in post-secondary institutions, with about 4,000 graduating annually. Research indicates that another 5,000 Indigenous students applied, were eligible and qualified to enter postsecondary education but were unable to receive any financial support from your federal government, which, once again, was a promise and obligation written in the treaties.

As well, the number of Indigenousowned and operated businesses has increased significantly over the past 10 years to more than 40,000. That is the good news.

Remember, every time someone leaves the reserve, the cost and obligation of your federal government for each individual is greatly reduced. What would motivate your federal government to make things better on reserves?

We really should be asking where the money is going and for what purpose.

Why is Canada’s Auditor General not allowed by law to audit First Nations financial statements?

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The deteriorating circumstances include grinding poverty, tainted water unsuitable for either drinking or bathing in more than 100 communities at any given time, a major housing crisis, loss of language, extreme crime rates, rampant health epidemics, and youth suicide rates many times the national average.

These results are the result of your federal government decisions, and it will take an educated, interested and concerned public to change this deplorable status quo. If Canadians do not express their concerns to their governments and demand changes, then our governments simply assume we just don’t care.

For Inuit youth, living in the remote and rugged Arctic, the suicide rate is 700 times the national rate.

It’s incomprehensible that we are not asking – no, demanding – that all levels of governments deliver action rather than words. Ultimately, Canadians must realize that the Indigenous community is a major stakeholder in the social and economic well being of our nation’s future.

Only by working together can Canadians as a people strive to find a common ground through understanding, and create a nation that respects and cares for all of its citizens, no matter what culture, race or heritage. We must let our elected representatives know that we are not indifferent.

About the author Robert Laboucane, originally from Ft. McMurray Alberta, is Director of the Calgary-based Indigenous Awareness Canada. He and his staff facilitate one-day workshops and offer a number of exciting online training programs for companies and organizations across Canada including local, provincial, and federal government departments, small businesses, service agencies and major corporations for 34 years.

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Indigenous Awareness Canada Indigenous Awareness Canada has been working for over 30 years to provide training programs that help people connect, create greater understanding, and to enhance communications between Indigenous and non-Indigenous people. Indigenous awareness training is an important first step and a foundational building block for developing long-term committed relationships and achieving better outcomes. Trusting and respectful relationships are built through improved awareness, comfort, confidence, and communications. www.indigenousawarenesscanada.com

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Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 29

Insurance valuations and building reinstatement costing PREPARE FOR ANYTHING WITHOUT PAYING TOO MUCH NO ONE EXPECTS serious loss or damage to occur, but we all know we need to be prepared for the worst by having the right type of insurance. That’s where insurance valuations and building reinstatement costing comes in. The goal? To ensure that buildings are not over-insured or underinsured when a loss occurs.

When rebuilding, there are two types of costs to consider – replacement cost and reconstruction cost.

Replacement cost is the property insurance standard for calculating valuation basis. In a nutshell, it is the cost to replace an entire building with one of equal quality and utility.

Generally, replacement costs are calculated using square-foot or unit-count methods.

These costs, calculated using square-foot methods, are based on for labour, materials, overhead, profit, and fees that are in effect prior to the loss – not after. Replacement costs assume that modern materials and current methods, designs, and layouts will be used to replace the building.

Reconstruction costs provide the cost to construct an exact duplicate of the building, at current prices, using similar quality materials, construction standards, design, layout, and workmanship. This is because it might be impossible, impractical, or unacceptable to use the materials or methods of the original construction. ‘Equal quality and utility’ may be substituted, where necessary, with ‘like kind and quality’.

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These costs also include site-specific and process-related costs and fees sometimes not included in replacement cost valuations including: • Current building codes • Reuse of building components below grade level • Reuse of mechanical systems below grade level • Loss of economies of scale associated with new construction • Extra costs due to site accessibility • Costs of demolition or debris removal • Higher labour costs and premium prices for materials • Extraordinary fees and other contingencies Understanding the differences The distinctions between replacement cost valuations and reconstruction cost valuations are important to understand.

An insurance carrier’s goal is to provide the owner with an equitable and fair settlement. Additionally, because policy and settlement terms are frequently subject to negotiation and court interpretations, it is essential that carriers receive premiums based on the fullest exposure of each building. That’s the building’s reconstruction cost.

Figuring out replacement cost Research shows that the actual cost to reconstruct a building after a total loss is usually greater than the estimated replacement cost. That is because replacement cost valuations do not include costs arising out of current building codes or from a variety of costs and fees that are commonly present in total losses.

To figure out overall replacement cost, Consulting Quantity Surveyors employ the Marshall & Swift program. Basic data, usually provided by the owner, is entered into the system and one of the following four ranks are applied: Low (Rank 1) – These tend to be very plain buildings that conform to minimum building code requirements. Interiors are plain with little attention given to detail or finish.

Typically, there are minimum mechanical and low-cost finishes throughout.

Average (Rank 2) – These buildings are the most commonly found. They meet building code requirements and there is some ornamentation on the exterior with interiors having some trim items. Lighting and plumbing are adequate to service the occupants of the building.

Good (Rank 3) – These are generally well-designed buildings.

Exterior walls usually have a mix of ornamental finishes.

Interior walls are nicely finished and there are good quality floor coverings. Lighting and plumbing include better quality fixtures.

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Excellent (Rank 4) – Usually, these buildings are specially designed, have high-cost materials, and exhibit excellent workmanship. Both exteriors and interiors have custom and ornamental features. Lighting and plumbing include high cost fixtures.

As well, rankings can fall between the two categories. For example, a building that’s better than good but not quite excellent could receive a rank of 3.5.

The information provided through the software shouldn’t be relied on in isolation. Marshall & Swift might not be appropriate for highly specialized buildings. Typically, these buildings are not measured and some of the adjustments for parking and design are based on a best estimate. They might not accurately reflect the actual condition or site location. For a more accurate estimate, a Consulting Quantity Surveyor can help adjust for software errors and market conditions.

Determining reconstruction costs The process to figure out reconstruction costs is as follows: • Building areas are measured onsite • A building elemental description is developed • Areas and building description is circulated to the owner for verification • Elemental quantities are measured and priced, segregating underground and above-grade construction.

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The estimate is inputted into a master summary. If applicable, demolition, project development management, and design fees are added to establish a reconstruction cost for the building. All statistics and building elemental descriptions are checked and verified by the owner. This is typically one of the primary issues that impacts assessments.

Because reconstruction cost is more comprehensive than replacement cost, it tends to be a better representation of what an insurance carrier may expect to pay following a loss, which makes it more reliable valuation method for determining insurance to value at policy inception or renewal.

Square-foot or unit-count valuation methods are unable to gather or process the amount of building and complex algorithms required to calculate reconstruction valuations.

Only automated, component-based estimating methods can analyze unique building characteristics and calculate riskspecific estimates based on localized building codes, structural considerations, labour, and material costs. This is what your Consulting Quantity Surveyor brings to the process.

By Analyzing all possible costs for replacement and reconstruction, the building owner can take comfort knowing that they’re not paying premiums that are too high for the value they’re getting, or too low to respond to a catastrophe appropriately.

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Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 31

LEADERSHIP REVIEW

Office leasing with Terry Doran

Terry Doran has worked for Crombie REIT and its predecessors for 30 years. As the Vice President of Office Properties, Terry is responsible for the company’s office portfolio across the Atlantic region. In addition to his commitment to building strong relationships with clients, Terry’s passion for sustainability has led to director positions with BOMA Nova Scotia, BOMA Atlantic (Past President), and BOMA Canada.

I sat down with Terry this past September to get his insights on the changes and challenges in office leasing, what’s coming next in a highly competitive market place, and how Crombie REIT has become one of Canada’s leading national real estate investment trusts.

How did you get started in the real estate industry? What has your career journey been like at Crombie?

I applied for a job at the local shopping centre in my neighbourhood just prior to my first year in university. It was a large company from Toronto with shopping centres throughout the country. I got a job working maintenance and security for the summer. After that first summer they hired me back and I stayed all through university. I was looking for work after I graduated and they had a marketing director position in Ontario, so I moved into management from there and travelled across Canada.

I joined Crombie REIT (formerly Atlantic Shopping Centres Limited) in 1988.

This is my 30th year.

What are the biggest changes in office leasing over the last 30 years?

The biggest changes in the office market are the types of office spaces and the

requirements for the offices and the amenities. Sustainability is something that has become really important over the last number of years. Technology and innovation are also playing a large role in our industry. Halifax tenants, like other cities, migrate to and from the suburbs and the Central Business District. Another trend in Halifax and in other Canadian urban markets is mixeduse and multi-residential developments.

Millennials and younger generations want to live downtown. They want sustainability, they want you to be environmentally friendly, they want walkable cities, they want bicyclefriendly cities, and they want urban rooftop amenities and gardens, anything that’s going to reduce your carbon footprint and make the world a better place to live. Climate change is no longer an argument – it’s a reality. In order to appeal to tenants today you must keep sustainability, customer service, technology, and amenities top-of-mind.

There have been a lot of changes over the years in office density, going from the typical one-person office with a door, to open concepts, with more meeting and collaboration space. The other big change in the industry is analytics. Everybody wants data and they want to be able to use it to track people’s habits and to more accurately provide what customers are looking for.

Halifax has experienced a significant amount of growth over the last ten years. Vacancy rates in residential properties, especially affordable spaces, have remained low. Have commercial and office properties experienced the same growth and low vacancy rates?

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Terry Doran, BA

It goes up and down. If you look at Alberta, it is heavily influenced by the oil patch and it tends to go up and down with the industry. So right now, Calgary is experiencing very high vacancy rates. Halifax is as well.

Although there was a big shift of office properties in the suburbs, we are seeing multi-residential mixed-use development coming back into the city, and younger people wanting to live in the city. That will make offices migrate back downtown close to the talent they seek. Right now there is a 20% vacancy rate in Halifax and it will take a long time to normalize that, but it will happen over time.

Is that a high rate?

That is very high. In a good market the average vacancy rate for offices is in the 2% to 4% range. You need flexibility in the office market so people can upsize or downsize if need be.

So in the end you don’t want to be 100% occupied, but a low percentage vacancy rate would be great.

There is a surge in shared office spaces recently. Do you see this changing in your properties?

Yes, it’s happening in large markets and it’s happening here on a smaller scale. Those types of spaces are becoming more popular and I think that will continue to increase. Instead of getting in their car and driving to an office, people will work from home or they will work from home parttime and go to the office when it’s necessary. It’s rapidly changing the way people work, and technology has allowed us to do that. It’s a different way of working. The old standard ways of sitting in an office and going To return to Table of Contents CLICK HERE

Climate change is no longer an argument – it’s a reality. In order to appeal to tenants today you must keep sustainability, customer service, technology, and amenities top-of-mind. to a meeting in a boardroom are changing. With technology there is video conferencing, which is quite common for us at Crombie as we have offices across the country, so if we need to have a meeting it’s very easy to do.

What happens in a high vacancy rate is that you tend to see a decline in rental rates. We are not seeing a lot of that in Halifax and also what happens is a ‘flight to quality’. If people can get a good deal in a brand new building and they are currently in a B building, then they are going to move to the new building. But if you have a B building, you have to put capital back into that building to make sure it is renovated and you can turn it into a B+ building. Make it sustainable, upgrade the amenities with high-end finishes, and make sure that the lobbies and all of the spaces that people use are top quality or else you will not maintain your retention rate.

People will go to where they get the quality they desire.

Have residential developments been a more recent market for Crombie?

Yes. We’re not the only REIT to be moving into residential. Most developers are moving into the mixed-use residential in urban markets, where you have retail, amenities, and fitness facilities so that people can live, work, and play.

What trends are you seeing in major centres to adapt to new technologies, and the way people live and work when it comes to commercial real estate development?

Sustainability, customer service, and amenities – all absolutely necessary things. But from a technology standpoint, it’s increased data collection around business operations and personal preferences. E-commerce is a huge growing sector and we’re not exactly sure how that’s going to impact bricks and mortar.

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What do property owners need to do to continue to draw good tenants and supporting clientele beyond sustainability, amenities, and the convenience factor?

Food courts, fitness, and facilities that promote healthy living; bringing in tenants that provide necessary services like medical clinics, pharmacies, dentists, and education. All of those things are fairly critical components.

For the next generation of people entering a new career who might be thinking of choosing a path in commercial real estate, what advice would you give them?

In the real estate industry, relationships are everything. Some people would say you should study finance and technology and you need to be innovative and nimble. You need all of that. But you also need very good people skills. You can’t just rely on technology, tablets, and smartphones.

This always has and will continue to be an important part of the industry.

People still want to talk, people still want to build relationships, and you need to be able to develop them over time. Getting involved in industry organizations like BOMA or the International Council of Shopping Centres (which are worldwide

organizations) allows you to build relationships. The first time you attend a conference with one of these organizations, you might only meet a few people. By the tenth, you will likely know most people and develop and business relationships.

It’s also about staying well ahead of the curve. It’s about analytics, technology, innovation, and finding out what’s coming next and trying to get in front of it. Who would have guessed 20 years ago that there would be no Sears? Many of the big Canadian and American retailers are now facing new challenges.

About the author Amanda White, PQS, owns and operates Foresight Atlantic Inc., a boutique quantity surveying firm just outside of Halifax, in her hometown of Sackville, Nova Scotia. When Amanda is not building relationships with her clients and colleagues or being an entrepreneur, she volunteers as a board member of the CIQS Maritimes Chapter and as a member of the Canadian Progress Club Halifax Citadel.

QS Online Cost Consultants Inc. Halifax, Nova Scotia p. 902 405-1504 halifax@qsonlinecostconsultants.com www.qsonlinecostconsultants.com

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 33

SA VE

TH

ED AT E

CIQS Congress 2019

Congrès ICÉC 2019

60th Anniversary

60e Anniversaire

We are pleased to announce that Congress 2019 and the Institute’s 60th Anniversary will be held in Quebec City, QC on July 25-28, 2019 at the Hilton Quebec.

Nous sommes heureux d’annoncer que le Congrès 2019 et le 60e anniversaire de l’Institut auront lieu à Québec, du 25 au 28 juillet 2019, au Hilton Québec.

More information on the technical and social program will be available in early 2019. Take advantage of early bird registration fees launching in January.

Plus d’informations sur la programmation seront disponibles au début de 2019. Bénéficiez du tarif réduit pour inscription hâtive dès le mois de janvier.

The David Lai YQS Bursary Program was a great success in 2018, and we look forward to all Young Quantity Surveyors applying for the bursary, which will launch January 2019.

Le programme de bourses David Lai YQS destiné aux jeunes économistes fut un grand succès en 2018 et nous attendons avec impatience vos candidatures pour ce programme qui sera lancé en janvier 2019.

Dates: July 25–28, 2019 Venue: Hilton Québec

Dates: 25 au 28 juillet 2019 Lieu: Hilton Québec

Registration and Accommodation bookings open January 2019 Inscriptions et réservations d’hébergement dès janvier 2019

34 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

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INDUSTRY INTERVIEW

Zey Emir

, Chair, 2018 Board of Directors,

Canadian Construction Association

In this edition, Zey Emir, Chair of the 2018 Board of Directors of the Canadian Construction Association (CCA), has graciously responded to several key questions that are currently on the minds of those in the Canadian construction industry. The questions and responses are below.

What is your role as Chair of the 2018 Board of Directors with the Canadian Construction Association?

The CCA board of directors is responsible for governing the association in line with the regulatory environment, strategic plan, budget, policies, and best practices. As the CCA chair, I ensure that the meetings of the board, executive committee, and governance committee run efficiently and focus on the most important issues or opportunities for our members.

Along with the CCA president, I am a spokesperson for the association. We address members and the industry regularly across the country, ensuring the communication of the most pressing priorities for the industry.

What are the current and ongoing challenges facing the construction industry in Canada?

The workforce is the number one issue we have heard.

BuildForce Canada is predicting that 21% of the national construction workforce will retire over the next decade. At the same time, construction is often regarded as the last resort occupation. While technology – for example, driverless vehicles – may close some of the gap, we have a lot of work to do to attract and retain workforce needed for a competitive, technologyenabled, inclusive, and productive construction industry.

The second area of concern is the state of our current and future trade-enabling infrastructure. A consistent flow of capital is needed to fuel Canada’s competitiveness, which is vital for our industry and for all Canadians.

The third priority is innovation. The construction industry has traditionally lagged in productivity and technology adoption. One of our goals is to better support our members’ adoption of tools and best practices. We are advocating with the government for a dedicated R&D fund to drive our productivity forward.

What are your views on the impact of the outcome of the NAFTA negotiations on construction in Canada?

Recently, Canada reached a tentative trade agreement with the US and Mexico.

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Zey Emir

CCA was understanding of the initial application of the steel and aluminum tariffs in response to the unfair actions of the US. With the tentative agreement, the industry’s requests that the tariffs be removed were disregarded by our government and exacerbated by the imposition of so-called safeguards on steel products.

The US-imposed tariffs and the safeguards on the import of foreign steel will hurt the construction industry, its workers, and all Canadians by raising prices, damaging competitiveness for business, and delaying projects necessary for Canada’s infrastructure.

How is the CCA addressing major challenges a round project performance and limited resources?

The CCA is addressing project performance by developing industry standards, guides, and best practices through our Standard Practices Committee and through participation in the Canadian Construction Documents Committee. CCA’s committees, Canadian Design-Build Institute and Lean Construction Institute of Canada, promote best practices and provide resources for the industry.

One of the goals of CCA’s plan is to reposition the industry to address workforce shortages. We hope to attract a diverse workforce, including under-represented segments: women, indigenous Canadians, new Canadians, among others. The CCA is currently seeking nominations for counsel on advancing our goal to make construction an employer of choice.This advisory working group will help develop a survey to measure perceptions, inform the building diversity and inclusion, and celebrate those who champion this initiative.

What changes have you seen in the Canadian construction industry over the past five years?

In the past five years I have observed an increase in project size, bundling, mergers, acquisitions, as and foreign investment. There has also been a surge in new and different construction contracts. Simultaneously, we’re seeing a decrease in document quality, which adds to the risk that contractors face.

What challenges do you foresee for the Canadian construction industry in the next five years?

It is said that the construction industry will likely see more change in the next five years than in the previous 50 years.

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 35

INDUSTRY INTERVIEW

Investor confidence in Canada will be a key theme going into the election. CCA has been strongly advocating for the Government of Canada to establish an environment that is attractive to investors.

Declining investor confidence in Canada is an increasing concern. For example, the uncertainty created by the Trans Mountain Pipeline expansion, the requirement of community benefits, and our tax environment all have a profound impact on investors’ confidence. On the technology front, there are many innovations that will fundamentally change how we deliver projects. From 3D printers to new materials and integrated software, the industry and the owners who commission these projects will benefit in the form of productivity gains, reduced waste over time, and improved project delivery.

Is the CCA positioned to address the opportunities and challenges present and forecast?

Very much so.In March 2018 the CCA board approved a new five-year strategic plan for CCA. President Mary Van Buren is an experienced change leader,focused on modernizing the association, delivering more value to members, and increasing advocacy efforts with the government. This plan was the result of extensive consultation. It explains how CCA will meet its vision to ‘Build a better Canada’. You can read the plan at www.plan.cca-acc.com.

Is the CCA aware of any upcoming legislation that will directly affect the Canadian construction industry?

CCA is active on about 15 files at any one time. Two key pieces of legislation of more recent concern relate to environmental assessments and community benefits. The federal government has started a complete review of the Canadian Environmental Assessment Act (CEAA). CCA is monitoring its progress and engaging the government to ensure that the proposed measures will not be a source of supplementary delays for projects. Bill C-69 (An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act) is in the second reading phase in the Senate.

CCA’s concern with bill C-344: An Act to amend the Department of Public Works, Government Services Act (Community Benefits), and the community employment benefits framework may lead to an unpredictable, unfair, and opaque procurement processes. We request that community benefits be clearly laid out in the tender documents, so that each contractor can price the work required. Should these additional benefits fall outside the scope of the document, contractors would be in blind competition with each other without knowing how their proposed benefits would influence the overall evaluation.

Bill C-344 is part of a larger push that also includes the community employment benefits, now part of the framework agreements under the Investing in Canada plan. Recipients 36 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

of federal funding for new major public infrastructure projects are being asked to pursue targeted efforts to contribute to the employment, economic, and social benefits of the community. CCA is concerned about anything that may add further regulatory requirements to access federal infrastructure funding, reducing productivity and increasing uncertainty. How committed our crosscountry members are to their communities is a great source of pride for us. From work at food banks or Habitat for Humanity, to hiring apprentices, the construction industry makes a difference – ahereing to our voluntary corporate social responsibility (CSR) initiatives. This is in addition to the many formal programs initiated by construction associations, already helping under-represented segments get into the construction industry. More effective ways to boost employment – as stated in our pre-budget submission – include providing funding for STEM WIL (Work Integrated Learning) programs, recruitment, and retention campaigns.

This will ensure that the procurement process is fair, transparent, and productive; and increase the annual value of the Apprenticeship Job Creation Tax Credit (AJCTC), broadening its application to all years of study in all recognized provincial apprenticeship programs.

In the lead up to the 2019 federal election, what do you consider the contending parties should consider that would benefit the Canadian construction industry?

Investor confidence in Canada will be a key theme going into the election. CCA has been strongly advocating for the Government of Canada to establish an environment that is attractive to investors.

Because the industry will be facing a major workforce shortage over the next 10 years, we are expecting all parties to address the issue. In particular, CCA has advocated with the Business Higher Education Roundtable (BHER) for increased government funding for student workplace placements. CCA has submitted its own proposal to fund 1,000 co-ops over four years.

Innovation is another expected topic. As the industry actively works on being more efficient in the always-evolving world of bigger and more complex projects, CCA has made numerous requests for an R&D fund for the construction industry. We expect political parties to show how they would support the industry on this journey.

Finally, infrastructure will remain at the centre of CCA’s preoccupations. In Budget 2018, the government slowed the infrastructure expenditure to control the deficit. CCA is working with the government to ensure it respects its infrastructure commitment from Budget 2016.

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What future role do you see for the CCA in supporting the Canadian construction industry?

CCA’s 2018-2023 strategic plan lists three priorities and areas of focus for CCA. We seek to unite the industry while proactively championing national issues that matter, lead the construction industry in adopting best practices to help our members in their success, broaden our membership, and drive member value.

About the author Interview conducted by Arif Ghaffur, PQS, Editor of Construction Economist.

Zey Emir, P.Eng., MBA is the 2018 chair of the Canadian Construction Association (CCA) and president of Revay and Associates Limited. She has 25 years of experience in construction claims, dispute resolution, and contracting strategy; and is a recognized expert court witness in delay, productivity, and quantification of damages. She joined the CCA board in 2009; chaired the CCA Manufacturers, Suppliers and Services Council; and been the Vice-Chair of the CCA Standard Practices Committee. She then served as the second national Vice-Chair/Honorary Secretary, the first national ViceChair/Treasurer, and as the Chair. She’s also a former board member of Canadian Construction Innovations (CCI).

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Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 37

GETTING TO KNOW OUR PEOPLE

Sophia Chin You, Membership Coordinator What is your role at the CIQS and to whom are you accountable?

I hold the position of Membership Coordinator. My responsibilities include processing new membership applications and ensuring the required supporting documents are received before submitting files to the Membership Committee for evaluation; maintaining membership records; acting as liaison between potential and existing members and the organization; providing administration for diaries; as well as coordinating and scheduling of PQS candidate interviews.

I am accountable not only to the Executive Director, Education Director, and the CIQS National Board, but also to CIQS members – as I guide them toward their journey in achieving their professional designations.

What does a typical day look like, and is there much variety in your job?

The tasks I perform vary from day to day. These include fielding calls and responding to emails from potential members looking for further information on CIQS membership, or to existing members wishing to discuss their next steps toward their designation; collecting diary or paper submissions and passing them on to evaluators for approval; arranging interviews for PQS candidates; sending follow-ups to applicants with regards to supporting documents; producing monthly and quarterly assessment reports for our Education Director and the CIQS national board; processing new applications; and updating application tracking sheets. From time to time, I also make an effort to follow up with members who have been inactive in their pursuit of their designation in case they have questions about their next steps.

How long have you been doing this, and how has your role changed?

I joined the CIQS in March 2015 as Membership Coordinator, a new position developed to look after all aspects of membership nationally, including applications. In the beginning, one of the

The most satisfying part of my job is when I send that final letter to a member accepting them as a Construction Estimator Certified (CEC) or Professional Quantity Surveyor (PQS).

38 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2018

priorities was to develop a tracking sheet to record the status of new applications and existing member files from across Canada.

Now that we have collected member information, my role involves processing new applications, keeping maintenance of member records, and providing guidance to new and existing members. Our future goal is to regularly follow up with members and offer support and guidance in their journey to achieving their designations.

What is the most satisfying part of your job?

I thoroughly enjoy being able to support and guide individuals through the process to achieve their goals of attaining professional designations. It is definitely rewarding to be able to work with an individual to achieve their goal, whether they are new students, graduates, new immigrants to Canada, national members, or international members. The most satisfying part of my job is when I send that final letter to a member accepting them as a Construction Estimator Certified (CEC) or Professional Quantity Surveyor (PQS).

What are the challenges and opportunities of performing your role?

The CIQS is a non-profit organization that relies on volunteers to keep it going. One challenge is finding enough volunteers with ample experience and qualifications required to assist with the approval process of PQS candidates. I believe that we can never have enough volunteers as sometimes individuals may lose their interest or resign due to personal or work commitments. However, we are lucky enough to have a number of experienced PQS members who are always willing and able to find time in their busy schedules to help the Institute. I am glad to have the opportunity to work with such knowledgeable and experienced individuals willing to dedicate their spare time to devote to the institute and the members.

Tell us a little bit about yourself – do you have any particular other interests?

I have two wonderful kids who keep me very busy, whether it is helping them with their schoolwork, taking them to their swim, gymnastic, or dance classes, or driving them to birthday parties.

When I have the time, I enjoy new challenges like learning to make bread, learning the art of hand lettering, taking lessons in archery, or treetop trekking (which is something I have tried recently and enjoyed – when I was not looking down, that is).

About the author Interview conducted by Arif Ghaffur, PQS, Editor of Construction Economist.

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Congratulations to the following Designation Holders who have qualified as a PQS or CEC: CIQS – British Columbia Grant Langton, PQS Peter Rogers, CEC Manjinder Singh, CEC Dmitrii Volokitin, PQS

CIQS – Members at Large Salvador Jr. Gamboa, PQS CIQS – Ontario Luis Acevedo, PQS Nicholas Charlton, PQS Mu Chen, PQS Amin Jafaridehdari, PQS

David Mellett, CEC Janeita Gnanaraj Natterjee, PQS Anurag Sharma, CEC Yury Shuster, CEC Bineesh Gopi Susamma, CEC

CIQS – Prairies and NWT Pol Alabat, CEC Mamerta Carandang, CEC Ibrahim Oladapo, CEC CIQS – Québec Jean-Marc Moukhtar, PQS

In memoriam Robert McConnell Todd (October 29, 1936-July 25, 2018) Died peacefully in Dartmouth General Hospital on July 25, 2018. Born October 29, 1936 to the late Florence (Robinson) and Robert M. Todd Senior, he will be loved and missed by his wife of 56 years, Rachael (Lyons); children, Susan and David; grandchildren, Sarah and Michael; and brother, Thomas.

David Macaulay Shanks (May 6, 1929-July 11, 2018) David Macaulay Shanks was at peace and surrounded by his immediate family when he passed away at the age of 89 at the North Shore Hospice on Wednesday July 11, 2018.

David is predeceased by his loving wife Marilyn and sister

Martin Bloem (July 22, 1941-October 22, 2018) Martin Johan Bloem passed away at the Foothills Hospital in Calgary, Alberta on Monday, October 22, 2018 at the of 77 years. Martin’s family and friends are deeply saddened to lose a great husband, father, grandfather, uncle, friend, and co-worker.

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A leader in the Nova Scotia construction industry, he enjoyed a successful 30-year career with Lindsay Construction, including 12 years as President, and played a major role in the creation of the Halifax waterfront’s bestknown landmarks, Purdy’s Wharf. He was named a Fellow of the Canadian Institute of Quantity Surveyors in 1999, and an Honorary Life Member of the Construction Association of Nova Scotia in 2010.

Margaret. He is survived by his children Ian, Marilyn (Joe), Beverly (Owen), Keith (Krista), Graham (Vicki), and his nine grandchildren: Jeffrey, Sean, Melanie, Megan, Jocelyn, Walker, Cole, Eric, and Riley.

David Shanks was a member of the CIQS for almost 60 years.

Martin was born on July 22, 1941, in the Netherlands and moved to Canada in 1962. Martin has been associated with the CIQS since the 1980s and a member of the CIQS – Prairies and Northwest Territories.

Winter 2018 | www.ciqs.org | CONSTRUCTION ECONOMIST | 39

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