Construction Economist Journal - Fall 2019

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

FALL 2019

Creating a Legacy

Leadership Interview

PQS Member Profile

Craig Woodall

Doug Jones

Marie Foley

PM 40065075

David Dooks, David Lai, and Sheila Lennon with the recipients of the David Lai YQS Congress Bursary for 2019, Alexander Ings, Daniel Josiah, Elodie Brugnone, Sami Moufti, and Gabriel Esu.

• Canadian Housing – Trends & Data • CIQS 60th Anniversary – 1959 & Onwards • Project Profile – Trans Mountain Pipeline • Sustainability Corner – Leaving a Legacy ciqs.org

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(F)................... . . . . . . . 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: David Dooks, PQS(F) Vice Chair/Treasurer: Erin Brownlow, PQS

CONSTRUCTION ECONOMIST FALL 2019

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

Features In memoriam – William John Hunter. . . . . . . . . . . . . . . . . 13 Project profile – Trans Mountain pipeline. . . . . . . . . . . . . . 17 Implementing BIM for quantity surveying services. . . . . . . 19 CIQS Congress 2019 recap. . . . . . . . . . . . . . . . . . . . . . 21 CIQS 60th anniversary – 1959 and onwards. . . . . . . . . 33 Leadership interview – Doug Jones. . . . . . . . . . . . . . . 42 Watch, listen, learn – Marie Foley. . . . . . . . . . . . . . . . 44

Director/Registrar: Jerry Crawford, PQS Education Director: Wendy Hobbs, PQS(F) Director: Arif Ghaffur, PQS(F) Director: Indu Elapatha, PQS Director: Roger Ward, PQS(F) Director: Tammy Stockley, PQS Director: Wassim Sultani, PQS

21 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

Sustainability Corner . . . . . . . . . . 12

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

4

Legal Corner. . . . . . . . . . . . . . . . .14

Executive Director’s Message . . . . . .

7

Congratulations Corner. . . . . . . . . 20

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

9

Third Floor - 2020 Portage Avenue Winnipeg, Manitoba R3J 0K4 Tel: 866-985-9780 Fax: 866-985-9799 info@kelman.ca www.kelman.ca Managing Editor. ..................... Chris Kelman and Katie Woychyshyn Art Design/Production. .......... Kiersten Drysdale Advertising Coordinator...... Stefanie Hagidiakow Marketing Manager. .................. . . . . . . . . . Jeff Kutny jeff@kelman.ca 866-985-9789 Publication Mails Agreement #40065075 Send undeliverable addresses to: lauren@kelman.ca

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 3

Chair’s Message

After sixty years, why ‘Quantity Surveyor’?

T

his year, the Canadian Institute of Quantity Surveyors (CIQS) reached its 60-year milestone, having been incorporated in 1959. At the inaugural AGM in 1960, the first CIQS president, Malcolm Milton, addressed the question: why ‘Quantity Surveyor’?

To paraphrase, because an estimator was too common and construction estimator could limit membership to construction estimators. The Institute was founded with the intention of embracing all those dealing with matters of cost in contracting, engineering, architecture, and public and private corporations.

The choice was to make use of the term Quantity Surveyor because, at that time, it was beginning to be recognized as a title for a person trained to produce quantity estimates, prepare bids, and provide cost control on construction projects. The term Quantity Surveyor was synonymous with the construction industry and was considered not to encroach on the fields of architects or engineers.

The concept of counting and costing for construction projects was recorded in history over 4,600 years during the time of the pyramids, and again noted during the 17th century with the reconstruction of London after the Great Fire. These pioneers took on massive development undertakings and recognized the need to work in collaboration with construction professionals to measure, provide quantitative data, assign a value for the work, and negotiate on behalf of tradesmen to provide compensation for work completed.

Today we still refer to ourselves as Quantity Surveyors and our highest designation identifies us as Professional Quantity Surveyors. While the name remains the same the tools of our trade are rapidly changing. In the early 2000s,

the construction bidding world saw the transformation of measuring quantities, from paper drawings by use of scale or digitizers, to fully immersive, digital, on-screen, takeoff programs. A decade later, software development progressed to the point where the Building Information Modeling (BIM) system made 3D dimensional design a working reality and new software tools quickly emerged allowing for the digital data included in BIM to be collected, including measurement of quantities.

The digital world may have simplified how data is collected but does it understand the data it has collected?

For example, how to organize the data, how to make use of the data, or how to understand how this data becomes useable information to gather cost and to determine risk included in the various layers of the vast data being provided.

While data is a crucial role to measuring quantities, it is not always useful to determining cost. In the past we have jested when referring to ourselves as bean counters, but that stereotypical reference has never applied to what we do. Costing comes from understanding what is included, what is excluded, the level of complexity, the risks and impacts that come with the choices and selections made during design, and the method of procurement – as well as many other factors that will develop and be resolved during the life of a construction project.

Many today believe we are on the doorstep of the fourth industrial revolution (IR4). The current developing environment – in which our world is transformed by disruptive technologies and trends such as the Internet of things, robotics, virtual reality and artificial intelligence – changing the way we live and work. How does this affect the future

4 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

David Dooks, PQS(F)

of our profession? Do we see it as limiting our abilities to manage cost? As Quantity Surveyors today, we have evolved.

Today, we play an important role in the construction and financial management process, which includes cost budgeting during design, cost estimating, life-cycle costing, managing the bidding process, cost management, project monitoring, contractual disputes, and dispute claims. Even in the last few years, with changes to the construction act and the introduction of prompt payment legislation both provincially (including in Ontario) and federally, the role of the quantity surveyor has not been forgotten, as some in our profession will become subject matter experts and adjudicators.

I see the founders of the CIQS as innovators of our time. They took a time-honoured profession and transformed that profession within Canada to one that provides valueadded services as independent consultants, to develop bills of quantities and provide cost-planning strategies for the future of development and contributing to the success of thousands of projects built in Canada and abroad.

Our mission statement, then and now, remains constant and as a profession we have remained steadfast as a selfregulated professional body, because our high standards of competence and integrity have been our trademark.

In closing, reflecting upon Malcolm Milton’s address at the first AGM, his insight still echoes within our profession today: “Having called ourselves Quantity Surveyors, it is up to every member of this Institute to ensure that the name is held in respect, and that the standards of conduct and practices required by membership in this Institute are mentioned and enhanced within the Industry.”

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Message du Président du Conseil

Soixante ans plus tard, pourquoi continuer à utiliser l’expression « économiste en construction »?

C

ette année, l’Institut canadien des économistes en construction (ICÉC) a fêté ses 60 ans, ayant été constitué en 1959. L’Institut a été fondé dans le but de rassembler tous ceux qui s’occupent des questions de coûts dans les domaines de la construction, de l’ingénierie, de l’architecture et des entreprises publiques et privées. Nous avons choisi d’utiliser l’expression « économiste en construction » parce qu’à l’époque ce titre commençait à être utilisé pour décrire une personne formée pour produire des estimations quantitatives, préparer des soumissions et assurer le contrôle des coûts des projets de construction. L’expression « économiste en construction » allait de pair avec l’industrie de la construction, sans empiéter sur le domaine des architectes ou des ingénieurs.

Le concept du comptage et de l’établissement des coûts des projets de construction a été inscrit dans l’Histoire il y plus de 4 600 ans, à l’époque des pyramides, et de nouveau au XVIIe siècle avec la reconstruction de Londres après le Grand incendie.

Ces pionniers ont entrepris des projets de développement de grande envergure et ont reconnu la nécessité de travailler en collaboration avec les professionnels de la construction pour mesurer, fournir des données quantitatives, attribuer une valeur aux travaux et négocier la rémunération du travail effectué au nom des artisans.

Aujourd’hui encore, nous utilisons l’expression « économiste en construction » pour nous désigner, et notre titre le plus élevé nous identifie comme des « économistes en construction agréés ». Cependant, même si le nom ne change pas, les outils de notre métier évoluent

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rapidement. Au début des années 2000, l’évaluation des quantités dans le monde des appels d’offres dans la construction a été transformée lorsque nous sommes passés des dessins sur papier à l’aide d’échelles ou de numériseurs aux logiciels d’avant-métré entièrement immersifs, numériques et à l’écran. Dix ans plus tard, le développement logiciel a progressé au point où le système de modélisation des données du bâtiment (MDB) a fait de la conception dimensionnelle en 3D une réalité concrète. Par la suite, de nouveaux outils logiciels sont rapidement apparus, permettant de recueillir les données numériques de la MDB, y compris l’évaluation des quantités.

Le monde numérique a peut-être simplifié la façon dont les données sont recueillies; mais comprend-il les données qu’il a recueillies? Par exemple : comment organiser les données, comment les utiliser ou comment comprendre la manière dont ces données deviennent des informations

pouvant servir à déterminer les coûts et les risques des différentes couches du vaste ensemble de données fournies. Bien que les données jouent un rôle essentiel dans l’évaluation des quantités, elles ne sont pas toujours utiles pour déterminer le coût. Par le passé, nous nous sommes qualifiés de faiseurs d’additions pour plaisanter, mais cette référence stéréotypée ne s’est jamais appliquée à notre travail. Pour établir les coûts, il faut comprendre ce qui est inclus, ce qui est exclu, le niveau de complexité, les risques et les répercussions des choix et des sélections effectués lors de la conception, la méthode d’approvisionnement, ainsi que de nombreux autres facteurs qui se présenteront et seront résolus au cours de la vie d’un projet de construction.

Nombreux sont ceux qui pensent aujourd’hui que nous sommes à la veille de la quatrième révolution industrielle (RI4). L’environnement qui se développe à l’heure actuelle – où notre monde est transformé

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 5

Message du Président du Conseil

par des technologies et des tendances perturbatrices comme l’Internet des objets, la robotique, la réalité virtuelle et l’intelligence artificielle – est en train de changer notre façon de vivre et de travailler. Comment cela affecte-t-il l’avenir de notre profession? Considèret-on que cela limite notre capacité à gérer les coûts? En tant qu’économistes en construction aujourd’hui, nous avons évolué. Nous jouons maintenant un rôle important dans le processus de construction et de gestion financière, qui comprend la budgétisation des coûts pendant la conception, l’estimation des coûts, l’établissement des coûts du cycle de vie, la gestion du processus d’appel d’offres, la gestion des coûts, le suivi des projets, les différends contractuels et les litiges. Même au cours des dernières années, avec les

modifications apportées à la Loi sur la construction et l’adoption de lois sur le paiement rapide tant à l’échelle provinciale (y compris en Ontario) que fédérale, le rôle de l’économiste en construction n’a pas été oublié puisque certains membres de notre profession deviendront experts en la matière et arbitres.

Je considère que les fondateurs de l’ICÉC sont les innovateurs de notre ère. Ils ont pris une profession traditionnelle et l’ont transformée au Canada en une profession de consultant indépendant qui offre des services à valeur ajoutée pour l’élaboration de devis quantitatifs et de stratégies de planification des coûts pour l’avenir du développement et qui contribue à la réussite de milliers de projets au Canada et à

l’étranger. Notre énoncé de mission, hier et aujourd’hui, ne change pas et, en tant que profession, nous restons fermement un organisme professionnel autoréglementé, parce que nos normes élevées de compétence et d’intégrité sont notre marque de fabrique.

Pour terminer, en repensant à l’allocution prononcée par Malcolm Milton lors de la première assemblée générale, je dirai qu’aujourd’hui encore, son point de vue résonne encore dans notre profession : « Comme nous avons choisi de nous qualifier d’économistes en construction, il incombe à chaque membre de l’Institut de s’assurer que ce nom est respecté et que les normes de conduite et les pratiques exigées des membres de l’Institut sont mentionnées et rehaussées au sein de notre secteur. »

WE ARE HIRING. Pelican Woodcliff is currently seeking a Quantity Surveyor to join our Cost Planning team.

Candidates should have 3 to 4 years of experience measuring quantities for all Architectural & Structural building components.

Interested parties should submit a resume and cover letter to:

Mary@pelicanwoodcliff.com

Cost Consultants, Project Monitors and P3 Advisors

100 York Blvd., Ste 608, Richmond Hill, ON L4B 1J8 Tel 905.889.9996 www.pelicanwoodcliff.com 6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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Executive Director’s Message

Sheila Lennon, CAE

Meeting updates and new marketing brochures

T

he CIQS Board of Directors held its quarterly meeting on July 25, 2019 in Quebec City, QC. The following is a list of highlights from the meeting: • On July 27th the CIQS Annual General Meeting (AGM) was open to members to vote on the business of the Institute and the election of Directors.

• Additional revisions were made to the CIQS National Standards.

Please visit the CIQS website for the updated version.

• The CIQS approved the reciprocity agreement with the Nigerian Institute of Quantity Surveyors. This agreement was signed in person at the PAQS 2019 Congress in Malaysia.

• The CIQS has approved the drafting of a reciprocity agreement with the Jamaican Institute of Quantity Surveyors.

• The Ghana Institution of Surveyors is interested in pursuing reciprocity with the CIQS. The exploration and information gathering process will start in September 2019.

• The Lobbying Committee has started Phase 2 of the environmental scan, which will focus on the province of Quebec.

• Congress 2020 will be held in Winnipeg, MB on July 9-12, 2019 at the Delta Winnipeg. It will feature an expanded education program and the CIQS AGM. Call for proposals will go out in November 2019.

• The CIQS is looking for volunteers to review and revise the Method of Measurement, and Construction Planning & Scheduling: An Introduction. PQS members who are interested should contact National Office.

• On June 26, 2019, the CIQS became a member of the Federal Industry Real Property Advisory Council (FIRPAC). The Council provides a forum for the public and private sectors to discuss issues pertaining to the planning and management of Federal Real Properties, including the disciplines of planning, design,

architecture, engineering, heritage conservation, landscape architecture, and construction.

The CIQS is pleased to announce the 2019-2020 Board of Directors elected on July 27, 2019. Look for profiles on the newly elected members in the next issue of the Construction Economist.

The elected Board is as follows: • David Dooks, PQS(F) – Chair • Erin Brownlow, PQS – Vice Chair/Treasurer • Wendy Hobbs, PQS(F) – Education Director • Arif Ghaffur, PQS(F) – Director • Indu Elapatha, PQS – Director • Jerry Crawford, PQS – Director • Roger Ward, PQS(F) – Director • Tammy Stockley, PQS – Director • Wassim Sultani, ECA – Director Find the dates and locations of the next CIQS Board of Directors meetings below: • October 4-5, 2019 in Calgary, AB • January 24-25, 2020 in Toronto, ON • May 1-2, 2020 in Toronto, ON • July 9, 2020 in Winnipeg, MB

CIQS continues to spread its wings Reciprocity agreements The CIQS has reciprocity agreements so that members can access services and programs offered by other professional organizations, and vice versa.

CIQS members can take advantage of the following international reciprocity agreements (available for download at www.ciqs.org/english/ reciprocity-agreements):

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• Australian Institute of Quantity Surveyors (AIQS): www.aiqs.com.

• New Zealand Institute of Quantity Surveyors (NZIQS): www.nziqs.co.

• Hong Kong Institute of Surveyors (HKIS): www.hkis.org.

• Building Surveyors Institute of Japan (BSIJ): www.bsij.or.

• The Royal Institution of Surveyors Malaysia (RISM): www.rism.org.

• Singapore Institute of Surveyors and Valuers (SISV): www.sisv.org.

• Association of South African Quantity Surveyors (ASAQS): www.asaqs.co.

The CIQS continues to explore further opportunities to engage in further reciprocity with other professional organizations. Watch this space!!

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 7

CIQS joins Federal/Industry Real Property Advisory Council (FIRPAC)

T

he CIQS is pleased to have joined FIRPAC, which is a forum for the public and private sectors to discuss issues pertaining to the planning and management of Federal Real Properties, including the disciplines of

architecture, engineering, construction, facility management, interior design, heritage conservation, quantity surveying, and landscape architecture. FIRPAC’s common objectives consist of improved relations, information sharing, and

enhanced communications. Subjects of interest include, but are not limited to: Professional Practices, Strategies of Procurement, Security, Insurance and Policies, Codes and Standards with respect to Real Property services.

Letter to the Executive Director Dear Sheila, As one of the last remaining founding members, I wish to congratulate you and all the members of the Institute on the 60th anniversary in Quebec City on July 25-28, 2019.

I am very happy and proud of your success. Many of our members were not even born in 1959 when the Institute was formed.

It is difficult to for me to realize that six decades have passed since thirteen founding members got started in Toronto.

It is also amazing that membership has grown from the bakers dozen of 13 to the 2060 members in 2019, thanks to the many members who have worked very hard over this period of time to form all of the six various chapters in this great country of Canada.

I recently found an old copy of the Toronto Star announcement of the formation of the CIQS in 1959 as shown.

I regret that I will not be able to attend and celebrate with you all in Quebec but wish the Institute similar success and growth in the future.

Yours Sincerely, Alexander J. Cosway

8 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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CHART OF THE WEEK CHART OF THE WEEK

Editor’s Message

Housing bubble risks by indicator Ratios, prices & credit

50

100

50

200

Ratio has grown since 2015 Base year:has 2015.

Ratios are standardized Ratio grown since 2015

since 2015

2 2

200

100

Ratio has decreased since 2015 Ratio has decreased

not be sustainable over the long term.

Ca na Ne da Can a w Ze Ne da al w an Ze d al

tr A al u ia st ra lia

This indicator shows how fast house prices areindicator rising relative howfast much renters pay. If This showstohow house prices housing prices rise waymuch fasterrenters than the income are rising relative to how pay.

If generated byrise thatway house (i.e.than rent),the then it may housing prices faster income not be sustainable over the long term. generated by that house (i.e. rent), then it may

No r Sw wa No ed y S rw en w ay ed en

an

d

The ratio of house prices to theratio annualized of rent.

The of housecost prices to the annualized cost of rent.

Base year: 2015. Ratios are standardized

4 4

Canada

195.9 Canada 195.9

3 3

Norway

168.3 Norway 168.3

5 5

Sweden

172.8 Sweden 172.8

1 1New Zealand

Australia

152.9 152.9

Australia

196.8 196.8

New Zealand

116.0 116.0 144.1

132.6

144.1 127.2

121.8 132.6105.9

127.2

168.3 121.8 119.9 168.3

110.8

119.9 125.3

110.8

105.9 114.1

111.0

85.5

114.1

111.0

105.6

86.4

99.2

85.5

105.6

93.4

125.3 99.2

93.4

86.4

New Zealand and Canada have both seen ratio New Zealand and their Canada of housing prices rents have both seen theirtoratio nearly double since 2015. of housing prices to rents

Although housing prices have skyrocketed in Portugal Although housing prices have recently, rents have increased skyrocketed in Portugal at an almost identical rate, recently, rents have increased the country 99.2 score. at giving an almost identicalarate,

nearly double since 2015.

giving the country a 99.2 score.

an

d

House price-income ratio The ratio of house prices to household income.

The ratio of house prices to household income.

This indicator shows how fast house prices areindicator rising relative howfast much money people This showstohow house prices make. housingtoprices rise too fast, itpeople may are risingIf relative how much money become unsustainable as too people no make.

If housing prices rise fast,can it may longer unsustainable afford to live. as people can no become

50

100

50

170

100

Ratio has decreased since 2015 Ratio has decreased

170

Ratio has grown since 2015 Base year:has 2015.grown Ratios are standardized Ratio since 2015

since 2015

Base year: 2015. Ratios are standardized

longer afford to live.

2 2

4 4

Canada

155.3 Canada 155.3

3 3

Belgium

137.3 137.3

5 5

Sweden

145.7 145.7

Belgium

135.7 135.7

Sweden

Australia

129.8

1 1New Zealand

Australia

156.8 156.8

New Zealand

95.7

129.8

95.7

125.0 118.4

125.0 112.6

118.4 128.1 94.0

112.6

128.1

98.4

120.7 101.3

There are three familiar names highly in There areranking three familiar this bubble names rankingindicator: highly in New Zealand, Canada, this bubble indicator: andZealand, Sweden.Canada, New

94.0

108.4 130.0 108.4 120.7 130.0

98.4

101.3

92.5

128.0

76.6

128.0

58.3 89.2

76.6

58.3

89.2

92.5

and Sweden.

All three countries also highly in terms Allranked three countries also of househighly price-rent ratios ranked in terms of on the previousratios map. house price-rent on the previous map.

ga rtu

la nd

l

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 9 th des erl w an nd Zea ds l na and da

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House price-rent ratio A us

H

ot real estate markets around the world are being fueled by loose monetary policy and capital flight from places like China and Russia.

In some cases, speculation ramps up and a housing bubble can form. This phenomenon doesn’t just warp the real estate market – the knock-on effects can throw a region’s entire economy into disarray. There are certain markets around the world that, according to data, are the most at risk of seeing a housing bubble.

With a decade-long bull market and an ultralow interest rate environment globally, it’s not surprising to see capital flock to housing assets.

For many investors, real estate is considered as good of a place as any to park money – but what happens when things get a little too frothy, and the fundamentals begin to slip away? In recent years, experts have been closely watching several indicators that point to rising bubble risks in some housing markets. Further, they are also warning that countries like Canada and New Zealand may be overdue for a correction in housing prices.

Bloomberg has published results from a study aimed to build a housing bubble dashboard. Let’s look at each bubble risk indicator, and see how they apply to the 22 countries covered by the housing dashboard. Courtesy of Jeff Desjardins, Editor-in-Chief of Visual Capitalist, this article provides infographics, which show some very interesting statistics around the following: 1. House Price-Rent Ratio 2. House Price-Income Ratio 3. Real House Prices 4. Credit to Households (% of GDP) It should be noted that most of the statistics in the above are shown in an index form, using the year 2015 as a base year. In other words, the data is not representative of the ratio itself – but instead, how much the ratio has risen or fallen since 2015. Ranking high on just one of these metrics is a warning sign for a country’s housing market, while ranking high on multiple measures signals even greater fragility.

Au s Be tral Au lg ia str iu Be al m lg ia iu Sw m ed S en w ed Ca en na Ne da Can w a Ze Ne da al w an Ze d al

Arif Ghaffur, PQS(F)

98.4

101.3

There are three familiar names ranking highly in this bubble indicator: There are three familiar New Zealand, names rankingCanada, highly in and thisSweden. bubble indicator: New Zealand, Canada, All three countries also and Sweden. ranked highly in terms of house price-rent ratios All three countries also on the previous ranked highly inmap. terms of

130.0

92.5

58.3

120.7

89.2 92.5

101.3

Editor’s Message

house price-rent ratios on the previous map.

Ne Ne t Ne her t Ne her w l an w l an Ze ds Ze ds C al an an al Ca d n a an d ad a da Ire Ire la nd la nd Po Po r tu r tu ga ga l l

Real house prices Housing prices adjusted for inflation.

90

This indicator shows adjusted whether housing prices are Housing prices for inflation. outpacing inflation – and if so, by how much.

Very rapidly-rising prices could be a bubble This indicator shows whether housing pricessign. are outpacing inflation – and if so, by how much.

Very rapidly-rising prices could be a bubble sign.

3

1 Canada

3124.1

Canada

124.1

100

130

Ratio has decreased100 since 2015

Ratio has grown since 2015130

90

2

Portugal

Ireland

1131.8

4

New Zealand

4121.9

Ireland

4121.9

Netherlands

127.6

131.8

Ratio has grown since 2015 Base year: 2015. Ratios are standardized

Netherlands

2127.6

Portugal

Base year: 2015. Ratios are standardized

Ratio has decreased since 2015 4

New Zealand

121.9

109.0

106.2 108.8

121.9

101.2

106.2 112.8 109.0

101.2

108.8

+30%

112.8 119.7

103.7

115.3

105.4 108.5 103.7

+30% +20% 116.1

117.0 105.4

+20% 116.1

119.7

100.5 115.3

108.5 95.5

108.5

100.5 100.5

117.0

House price-income ratio There are three familiar names at the top of this bubble indicator: New Zealand (156.8), Canada (155.3), and Sweden (145.7). In places where rents are lagging housing prices, so are the levels of household income. For how long will people afford to buy increasingly expensive houses, if their incomes continue to lag?

108.5

100.5 95.5

Real house prices have increased in all of the 22 markets, thehave Real house with prices exception increasedofinItaly all of(95.5). the

-8% 101.5

-8%

22 markets, with the Canada andofNew exception Italy (95.5).

Zealand have appeared near the top all three Canada andofNew bubble indicators, so far.

Zealand have appeared

101.5

near the top of all three bubble indicators, so far.

Canada

5 100.7% Canada

100.7%

Switzerland, Australia, and Denmark top the list here with consumer Switzerland, Australia, debt far exceeding and Denmark top levels. the list country GDP here with consumer debt far exceeding country GDP levels.

100%

less credit than the size of the economy 1

4

Switzerland

3

Netherlands

1 128.7%

3 115.4%

Netherlands

128.7%

Denmark

102.0%

115.4% 88.6%

130%

more credit than 130% the size of the economy more credit than the size of the economy

2

Denmark

4 102.0%

Switzerland

D

nd

s

D

Ca n N ad et a he rla Ca n N ad et a he rla

less credit than the size 40% of the economy

If consumers start defaulting on mortgages, it can lead to a correction or crash.

5

100%

40%

can be a sign that this lending is unsustainable.

IfIfconsumers start rises defaulting on mortgages, it it consumer debt well past 100% of GDP, can a correction or crash. canlead be atosign that this lending is unsustainable.

en en m m Au ark Au ark st ra st ra lia lia Sw Sw itz itz er er la nd la nd

nd

s

Credit to households (% of GDP) Amount of debt held by households, compared to total economic output.

Amount of debt held by households, Ifcompared consumer debt well past 100% of GDP, it torises total economic output.

Australia

2 120.3%

66.4%

88.6%

87.1%

66.4%

99.9% 87.1%

52.9% 60.8%

43.2%

52.9%

60.1% 76.3%

76.3%

Canada still makes an appearance near the top, with still a debt-to-GDP Canada makes an ratio of 100.7%. appearance near the

58.9% 60.1% 66.9%

58.9%

66.9%

60.8% 40.3%

48.8% 52.6% 48.8%

97.7%

97.7%

58.1%

58.1%

52.6% 40.3%

top, with a debt-to-GDP Canada the only ratio of is100.7%. country to appear in the top five ranking for all Canada is the only bubble countryindicators to appearabove. in the

top five ranking for all bubble indicators above.

Source: Bloomberg Source: Bloomberg

Infographics reprinted courtesy of VISUAL CAPITALIST. Sources for the infographic can be found at www.visualcapitalist.com/ mapped-the-countries-with-the-highest-housing-bubble-risks 10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

Real house prices Real house prices have increased in all of the 22 markets, with the exception of Italy (95.5). For this indicator, there are five markets that stand out as having fast-rising prices: Portugal (131.8), Ireland (127.6), Netherlands (121.9), Canada (124.1), and New Zealand (121.9). The latter two (Canada/New Zealand) have appeared near the top of all three bubble indicators, so far.

Australia

120.3%

99.9%

43.2%

House price-rent ratio When looking at housing prices in comparison to rents, there are four countries that stand out. New Zealand (196.8) and Canada (195.9) have seen ratios of housing prices to rents nearly double since 2015. Meanwhile, Sweden (172.8) and Norway (168.2) are not far behind. Elsewhere in the world, this ratio is much more in line with expectations.

For example, in Portugal – where house prices have skyrocketed over recent years – rents have increased at nearly the same rate, giving the country a 99.2 score.

94.0%

Credit to households (% of GDP) Exceedingly high debt ratios point to a strain on consumer finances – and when finances are strained, the chance of a default increases.

Switzerland (128.7%), Australia (120.3%), and Denmark (115.4%) top the list here with consumer debt far exceeding country GDP levels. However, Canada still makes an appearance in the top five with a debt-to-GDP ratio of 100.7%, some interesting thoughts and statistics that I do hope you find of interest.

94.0%

I thank you for your support and contribution to the Construction Economist, and sincerely wish that you and your families have a wonderful Fall. If you have feedback, suggestions and, of course, any articles that you would like to be considered for publication, please email: editor@ciqs.org.

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Editor’s Message

Letter to the Editor

Happy 60th anniversary for the CIQS It was a great pleasure for me to be the Chair of CIQS National when the CIQS marked its 50th Anniversary and we celebrated and held our hugely successful AGM in Toronto in 2009.

Doesn’t time fly and here we are – 10 years on and as we mark the 60th Anniversary, the CIQS has continued to grow as Construction Economists have increasingly contributed to the delivery of construction projects throughout Canada.

The Canadian Institute of Quantity Surveyors is internationally recognized for its commitment to the profession

of Quantity Surveying – a profession that I have proudly practised internationally in general contracting and as a consultant for over 40 years.

I am very proud to have been an advocate of putting CIQS on the international map, and contributing to its values in supporting diversity in every sense of the word.

I want to congratulate the dedication of the CIQS Executive Directors, past and present, the CIQS Board, the Editor and the many other volunteers, many of whom I consider my closest friends, who dedicate their time and expertise in

moving our profession forward. I am aware of the tremendous dedication and effort that this effort requires.

Within the next few years, I am convinced that with continuing vigour and dedication, our profession will go from strength to strength as we consolidate our position in the industry and continue to explore new opportunities through a vision for the future.

Respectfully, Ian Duncan PQS(F), MRICS, GSC Professional Quantity Surveyor Past Chair, CIQS; Past Chair, PAQS

Did you know?

Strategic misrepresentation in budgeting is said to be one of the root causes of megaproject failures, such as being, “over budget, over time…over and over again.” Strategic misrepresentation is defined as, “…the planned, systematic distortion or misstatement of fact – lying – in response to incentives in the budget process.”

Jones and Euske, 1991

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11

Sustainability Corner

How will you be remembered?

A

s the CIQS celebrates their 60th Anniversary, there will be lots of talk about legacy and how the organization has grown from the original vision back in the 50s. This naturally leads to the simple, but complicated and scary question: what will your personal legacy be?

Before we can even begin to answer the question we need to understand what a legacy is. Many definitions refer to bequeathed sums of money, creating opportunities for future generations through the generosity of the previous one. I believe there is a more important legacy, the leadership legacy, which you leave behind. One of my favorite definitions for legacy is ‘A situation that has developed as a result of past actions or decisions’. The reason being that it is not limited in scope to the rich and famous, we all have the potential to take action and make decisions that positively shape the future. This article will dig into some of the opportunities you have to start creating and shaping your legacy today.

Amassing a fortune to leave to either individuals or organizations is very material; goals can be set and success celebrated. The kind of leadership legacy that I am proposing is far less tangible. In 60 years’ time, will people have beliefs and values that drive their decision making because of the impact you had, either directly or indirectly?

I am confident that you all have moments where you say to yourself ‘What would Tony do?’ or ‘Would Yvonne be proud of that behavior?’

Those are clear indications that those individuals created a legacy against which you still test your values and decision-making abilities. The legacy

Craig Woodall

In 60 years’ time will people have beliefs and values that drive their decision making because of the impact you had, either directly or indirectly? that those individuals managed to create, usually unintentionally, could not be clearly defined, packed in a box, or quickly handed off. In reality, their legacy was probably a series of small, seemingly insignificant moments that, when viewed with the benefit of hindsight, collectively define their approach to the world and the people in it.

Now the question is: how is your legacy shaping up, what will your impact on your industry, peers, family and the world in general say about you?

To help you on your quest, here are my thoughts on how to be more intentional about your legacy creation.

Firstly, you cannot create a five-year strategic plan to execute. Your legacy will be the culmination of years and years of small moments, leadership moments. As a result there is no better time to start than today. Our lives are full of urgent matters, I am sure that when you get to work, or home, there are plenty of urgent issues demanding your attention. Your legacy is unlikely to be defined by your ability to multi-task several urgent issues, it will however be defined by your ability to take five minutes to do the important stuff, regardless of how busy you may be.

By important stuff, I mean coaching, mentoring, getting to know your teams and what drives them both personally and professionally, understanding and living your own personal values.

When I first started my career in the

12 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

construction industry we did not have ‘safety moments’, but 30 years later they have become a natural part of our meetings, sites, and culture. What if we took a couple of minutes, once a week to have a ‘leadership moment’, an opportunity to be vulnerable, share a lesson and live our values? These moments could be the ideal platform to start building and sharing your legacy.

Understand your personal values.

What are the unofficial rules by which you live your life? They are likely to heavily influence your legacy and the impact you have.

Mentoring and coaching are skills that we all need to improve. Sharing your knowledge and wisdom, when done correctly, can have a significant impact on those around you. Resist the common urge to withhold information, naively believing that it brings power.

Taking information to the grave with you will not help with your legacy.

Also, waiting until two years before you retire to impart your wisdom is also futile, you may find that the people who most need to hear it have stopped listening. From the earliest point in your career you should be looking for opportunities to share experiences, both good and bad, with anyone who is willing to listen. If you are too busy to take five minutes to listen to and advise a colleague, client or friend, I would suggest that you need to reconsider your priorities.

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Sustainability Corner

Recognize that creating a legacy should not be an ego-driven endeavour. If done correctly you may not get the credit at all, but will be able to rest safe in the knowledge that you had an impact and made a difference. Due to the intangible nature of leadership legacy, the results of your intentional hard work may not be seen for many years. A great mentor of mine once told me that I could not consider myself a true leader until I had helped to create a leader who had the ability to create leaders themselves. As a result, a part of my legacy will be to have influenced a new generation that I have never even met and am unlikely to do so.

Giving up the need to be acknowledged and credited is an important step.

Everybody’s leadership legacy will be different. I am not sure what mine will be, but I am confident that by seizing the opportunities to create leadership moments on a regular basis, I will manage to have an impact. I am sure that back in 1959, Malcolm Milton did not know exactly what would become of the CIQS, but he confidently took the first steps into the unknown. If you wait for the path in front of you to be perfectly defined, you may find you have waited too long. Start the journey today and see where it takes you; it will be very difficult to create your legacy in the last 18 months.

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.

A great mentor of mine once told me that I could not consider myself a true leader until I had helped to create a leader who had the ability to create leaders themselves.

In memoriam William John Hunter, known affectionately as “Willie” by all who knew him, passed away peacefully in Cape Breton, Nova Scotia, on August 21, 2019.

Born in Glasgow, Scotland on December 14, 1940, Willie is survived by his wife Gina and many family and friends.

Willie was a long time supporter and volunteer of CIQS. He was the President of OIQS (now known as CIQS – Ontario), GTA Chapter Chair, and the Editor of CIPHER (now known as the Construction Economist). He became a Fellow in 2004.

He was a well-known Professional Quantity Surveyor in Toronto’s construction industry, with over forty years of reputable service, mostly with Belmont Concrete Finishing Co. Limited. Willie was also a talented artist.

In his retirement, Willie and Gina operated a bed and breakfast in Cape Breton.

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13

Legal Corner

Does the CRA’s claim take priority over sureties and subs?

A

labour and material payment bond provides the deep pocket of a surety to ensure that, for example, a general contractor pays its subcontractors. An owner wants to know that subcontractors are being paid because if they are not it reflects badly on the owner and it may adversely affect the project, since the subcontractors actually perform the work. In effect, the owner is buying peace of mind when it mandates that the general post a labour and material payment bond. We use the term ‘buying’ because the cost of this bond is invariably added to the contract price.

When a general is incapable of paying its subs and the surety steps in to pay them, the surety will seek to reduce its losses by collecting any funds that would otherwise be available to the general and then collecting any shortfall from the individuals – usually directors and officers – who guaranteed the general’s obligations to the surety.

Legal tools for change Our construction industry is in the midst of significant change. Osler’s specialized lawyers, many of whom are also engineers, can cost-effectively revise your procurement, design and construction documents to strike your own balance, advise on your internal processes, and support your adjudications along the way.

Track your payment deadlines using our web tool at osler.com/calculator Osler, Hoskin & Harcourt llp osler.com

14 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

Jonathan Speigel

Molly Luu

The Canadian construction industry currently bears witness to one of the biggest claims against a surety in Canadian history. Since August 2018, Bondfield Construction Company Limited and its related corporations have been unable to operate without financial support from its surety (see Re Bondfield Construction Company 2019 Ont SCJ). In these proceedings, the court has held that, “By virtue of its subrogated trust claims under s. 8 of the Construction Act, Zurich stands in the position of a first secured creditor on a project by project basis with respect to amounts it has paid out under bonded contracts.” Sounds good, but is it enough?

It depends whether Canada Revenue Agency (CRA) is involved, which, at the moment, we do not know.

CRA A general’s inability to pay its subs points to its financial deterioration and possible insolvency. It is probably also incapable of paying other creditors and, more to the point, its source deduction remittances to CRA. Unfortunately for sureties and subs, CRA has a super priority for unremitted source deductions. This priority, which was settled in a 1993 decision of the Supreme Court of Canada, takes precedence over liens that might arise under the Construction Act and even over secured interests. It is yet another reason why subs and subsubs should know the financial position of the parties with whom they are contracting because the lien rights on which they may be relying may turn out to be no rights at all.

If an owner admittedly owes money to a general, then a priority dispute may arise between the subs or surety and CRA. Such was the case in Manitoba Housing and Renewal Corp v. Able Eavestroughing Ltd., a 2017 decision of the Manitoba Queen’s Bench, appealed to the Manitoba Court of Appeal, and then to the Supreme Court of Canada.

Mess The usual mess unfolded after a general became insolvent. The surety under a labour and material payment bond paid subs and took an assignment of their claims for lien. The surety had a claim for $610,000. CRA delivered to the owner a requirement to pay (something like a garnishment) the general’s unpaid source deductions of $712,000. The owner owed the general $463,000 by way of statutory and notice holdbacks and was content to pay those funds to whichever of the competing interests was the proper payee. Accordingly, either the surety or CRA was to be paid the owner’s holdback, but regardless who received the money, neither would be paid in full.

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Legal Corner

The surety had to demonstrate that the owner had a separate duty in law to pay the disputed funds either to the subs from whom it took its assignments or to the surety itself.

If it could not do so, the surety would lose.

Mitigation Mitigation is a concept by which a party who suffers a loss is under a duty to attempt to reduce (i.e. mitigate) its damages before it claims those damages against the person who caused the loss.

The surety argued that, under the laws of guarantee, once the surety’s obligation was triggered, the owner was obliged to pay funds to the surety to mitigate the surety’s exposure under the bond. This obligation, the surety argued, was owed to the surety in its own capacity.

The judge noted that this argument might make some sense if the surety’s claim were under a performance bond (i.e. if the owner is going to insist that the surety complete the project, then the owner has to pay the remaining funds under the contract to the surety). However, this argument made no sense and was not supported by any jurisprudence, in the context of a labour and material payment bond. The true purpose of this bond is to ensure that the subcontractors get paid. That would

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not engage a duty of the owner to pay money directly to the subcontractors or the surety. That was the very purpose of the bond, for which, you will remember, the owner paid.

Direct to subs The prime contract had a provision that allowed the owner to pay the subs upon the general’s default. This is not an unusual provision. Accordingly, the surety argued that since the owner was entitled to pay the subs, the owner somehow had a duty to pay the subs and through them, the surety. This argument, which the judge did not accept, attempted to turn the owner’s discretion into an obligation.

The surety also argued that the owner had a duty to pay the subs as third party beneficiaries under the prime contract.

For this argument to succeed, the surety had to prove that the parties to the prime contract intended to extend the benefit of its payment provisions to the subs.

The judge held that there was no evidence that the owner intended to extend the ability to sue on the prime contract to unpaid subs. “To the contrary, the requirement it imposed upon the (general) to obtain a labour and material payment bond confirms that (the owner) was attempting to avoid being involved in any dispute with an unpaid contractor, or any lawsuit started by one.”

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 15

Legal Corner

The surety’s only remaining possibility to recoup its losses is to claim against the individual guarantors of the general’s obligations to the surety, assuming there were some.

The judge also noted that private arrangements between the owner and the general in the prime contract could not adversely affect the rights of CRA. Subrogation The surety then argued, based on the doctrine of equitable subrogation, that it was subrogated to the position of the owner (i.e. the surety stands in the shoes of the owner so that whatever claim the owner might have against the general, the surety had against the general). Further, as a consequence of this subrogation, the surety was entitled under the prime contract to pay the funds as it saw fit and it saw fit to pay all of the funds to itself.

The judge rejected this argument in one sentence. She merely stated that she could not accept the concept that the surety could be, at the same time, both the assignee of the subs and subrogated to the position of the owner.

Inevitable result The parties had agreed (or conceded) that, if the owner only had an obligation to pay the funds to the general and had no obligation to pay the funds directly to the surety or the subs, then CRA had priority to those funds. Accordingly, CRA got everything (although not enough to satisfy its claim) and the surety and the subs received nothing.

The surety was not pleased with the decision of the motion judge and appealed to the Manitoba Court of Appeal. In a short 2018 decision, the Court agreed with every reason for decision that the motion judge made and dismissed the appeal. The surety then moved for leave to appeal the decision of the Court of Appeal to the Supreme Court of Canada. Leave was denied.

We assume that, because of the general’s insolvency, any claim of the surety against the general would be futile.

Accordingly, the surety’s only remaining possibility to recoup its losses – remember that a bond is not an insurance policy – is to claim against the individual guarantors of the general’s obligations to the surety, assuming there were some.

About the authors Jonathan Speigel is the founding partner of Speigel Nichols Fox LLP, a boutique business law firm in Mississauga, ON. He leads the litigation and construction practices and is a certified specialist in Civil Litigation and Construction Law. He has been practising construction law since 1979, involved in all facets of the field. His construction practice is not confined to dispute resolution and litigation; he has negotiated and drafted construction contracts, up to $100M, with owners, subcontractors, consultants, and partners in P3 projects.

Molly Luu is a litigator with Speigel Nichols Fox LLP. Her practice focuses on construction and general commercial litigation. She routinely represents general contractors, multinational suppliers, owners, and contractors in construction disputes.

Molly is a problem solver. She is able to quickly identify what lies at the heart of the problem, which enables her to act swiftly and efficiently to address the issue. She is mindful of the fact that less-obvious creative solutions are often the best ones.

Contact Us 480 University Ave Toronto, Ont. M5G 1V2 (416) 597-9922 www.gsnh.com

16 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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PROJECT PROFILE

Trans Mountain pipeline

Project facts and figures

T

he twinning of the 1,150 km pipeline Trans Mountain Expansion Project (TMEP) from Edmonton to Burnaby at a projected cost of $7.4 billion involves 980 km of new pipeline and reactivating 193 km of existing pipeline. Originally completed in 1953, it was designed to move crude oil and refined products. The TMEP once completed will allow for a 300% increase in capacity over the current 300,000 barrel per day (bpd) to move refined, semi-refined, and crude oil products in a process known as ‘Batch Train’.

Moving approximately 900,000 bpd at a flow rate of 8 km per hour will require an elaborate network infrastructure comprising 23 electric-powered pumping stations located at varying intervals. Four terminals located in Edmonton, Kamloops, Abbotsford, and Burnaby will have storage tanks for incoming feeder pipeline and tanker loading facilities. At each pump station, equipment monitors, leak alarm detection devices, and containment system features are incorporated for 24/7 monitoring from the Control Centre in Edmonton, using Supervisory Control and Data Acquisition (SCADA) software.

In addition to the automated features, local operators and maintenance personnel will inspect the facilities regularly and perform various types of preventative maintenance to ensure the pipeline integrity. The TMEP consists of 827 km of 24" pipe, 150 km of 36" pipe and 170km of 30" pipe. The TMEP is subject to meeting 156 conditions by the National Energy Board under the project’s Certificate of Public Convenience and Necessity.

The constructability challenges and installation logistics through nine separate communities is impressive. The communities impacted along the route are identified as Greater Edmonton, Yellowhead, Jasper Mount Robson Reactivation, Northern Thompson, West Barriere Reactivation, CoquihallaHope, Fraser Valley, and the Lower Mainland.

The construction installation techniques will vary with most of the route using a conventional open trench ‘baselay’ approach.

Trenchless boring or horizontal directional drilling (HDD) will be deployed at roads, railways and select watercourse crossings and, at some water crossings, dam and pump techniques may be necessary.

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A strong commitment to the engagement of the First Nations People – under the Indigenous Engagement Program previously undertaken by Kinder Morgan and now the TMEP consortium – has resulted in 33 BC and 10 AB Indigenous groups signing agreements or providing Letters of Support endorsing the project. In Alberta, the existing pipeline and corridor crosses Treaty 6 territory, Treaty 8 Territory and the Metis Nation of Alberta (Zone 4). In British Columbia 15 First Nation Reserve Lands are impacted by the TMEP. The project group/stakeholder communications have involved conducting over 215 open houses or workshops and 1,800 meetings to solicit feedback and address concerns. Extensive work has gone into identifying potential environmental impacts to wetlands, parks, and 22 river crossings, and implementing various mitigation measures such as increasing the number of Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 17

“ The project is expected to create more than

800,000 direct and indirect person years of employment.”

isolation valves from 94 to 126. A $150 million investment is targeted for the Western Canada Marine Response Corporation to create new response bases along the tanker route, and to fund new equipment to increase response capabilities.

The Conference Board of Canada estimates that over $46 billion in new tax revenue and royalties will be generated in the first 20 years. The windfall to the producers could contribute an extra $73 billion in revenue. Community Benefit Agreements with various communities living along the pipeline corridor totaling $8.6 million have been negotiated.

The project is expected to create more than 800,000 direct and indirect person years of employment. Construction workers could spend close to $500 million on food, lodging and accommodation over the three years of construction activity.

With so much prosperity, intellectual engineering, consulting services, and skilled trade capital at stake, unlocking increased access to the world global markets is critical. Shipping from the BC coast to the Asian market is also a significantly shorter travel distance and shipping transport cost than through the Strait of Hormuz.

QSM

MECHANICAL AND ELECTRICAL COST CONSULTING

Dennis M. Smith PQS dennis@qsmcon.ca www.qsmcon.ca

The advent of improved fracking techniques stateside has turned Canada’s number one energy market customer into their number one energy competitor. It just so happens the TMEP development potential happens to intersect simultaneously with global environmental awareness on the carbon footprint. Perhaps a healthy debate around cutting the global carbon footprint of oil tanker traffic or the cost spending almost $19.5 Billion in Canada this past year on imported foreign oil might help move the needle in favour of the project.

About the author Jerry Crawford PMP, PQS, GSC, is the founder and principal director of KGC Consulting Services Ltd. working with clients to provide construction dispute litigation support on transportation, energy, commercial, industrial, multi-family residential, civil, and building infrastructure projects.

Congratulations to CIQS on 60 great years!

Proud to be your publishing partner on Construction Economist since 2005!

416-949-8540 OFFICE 905-649-8540 CELL

Let QSM bring its experience to your next project!

18 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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Implementing BIM for quantity surveying services

F

ollowing the emergence of BIM, there has been a burgeoning increase in its implementation. As a matter of fact, BIM has been claimed to offer a significant advantage in improving the estimating practice, often prone to errors and inaccuracies. While the continued increase in the adoption of BIM globally has been speculated to threaten QS services, studies have shown that BIM, on the contrary, has the potential to revolutionize the QS practice by relieving the tediousness of tasks, thus enhancing job performance and providing more time to devote to other value-added services.

Nevertheless, implementation of BIM for QS practices has been a bit slow.

While there is certainly no shortage of information about BIM and quantity surveying practices, there is little yet to guide cost-consulting firms on its practical implementation. The goal of this study was to provide answers to lingering questions surrounding successful implementation of BIM for quantity surveying services, and to understand how BIM impacts the practice. To achieve this, three BIM experts in the QS field reviewed literature and conducted semistructured interviews.

The parametric modelling in BIM is said to facilitate the creation of a relationship among elements, and includes the specification and properties of individual elements and objects, potentially enabling the extraction of comprehensive and accurate information from the model, which can be directly used for costing.

Thus, estimators use a variety of options CLICK HERE to return to Table of Contents

to leverage BIM for quantity take-off and to support estimating. These methods range through a direct interrogation model, an indirect interrogation model and to BIM Quantity Take Off. The direct interrogation model allows schedules of quantities produced from the model to be downloaded into Excel or other estimating software, and then priced.

The indirect model involves linking BIM components directly to estimating software by linking a ‘5D Cost Library’ or an estimating package to BIM via plug-in or third-party tools. In the case of the BIM Quantity Take Off method, specialized quantity take-off tools (such as Autodesk QTO, Exactal Cost X, Innovaya, etc.) are used to import data from various BIM tools. The most sophisticated option is working within the 5D BIM environment. According to Exactal Inc., the QS/estimator can participate in data exchange from the outset, rather than working in isolation, to offer cost advice or take-off quantities for a project; however, there has been limited use of the 5D BIM globally, due to lack of use of a single BIM model.

From literature and experts’ responses, identified critical barriers inhibiting adoption of BIM include: high cost of implementation, lack of trained professionals, no demand for BIM, lack of enabling environment (government policies & legislations), and social and habitual resistance to change. Also, this study revealed that while literature envisaged a high impact of BIM on the mode of QS practices

– including a threat to the future of the profession – responses from experts show there was little difference in how services were rendered. Respondents did agree on how BIM improves their efficiency in service delivery because, unlike in traditional estimating, quantities were extracted automatically. Models have now been validated using Solibri and standardization has become paramount. Besides, the collaborative environment provided by the BIM process has been established to influence practices and redefine the professional boundaries in the AEC industry.

Also, adopting BIM provides these organizations additional opportunities, such as providing information management services on projects.

Furthermore, analysis of responses received confirmed that using BIM for cost consulting services could be frustrating at the initial phase, but does improve over time, hence the adoption plan that suggests following these three

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 19

principles: starting with BIM, progressing with BIM, and successful implementation of BIM. Starting with BIM involves devising an implementation plan using guides provided by the RICS, investing in estimating software interoperable with BIM and SOLIBRI for validation, training selected staff, networking with national leads and software vendors, and providing an enabling environment within

the organization. Progressing with BIM involves continuous development within the organization and on BIM based projects, until BIM becomes an integral part of service delivery.

The plan also incorporates a framework that uses the push and pulls strategy as explained by Walasek & Barszcz (2017) featuring inhibiting factors and identified strategies (all

summarized in the table below). The push represents the roles professional bodies play in encouraging BIM adoption, while the pull represents the motivating factors and role governments play towards BIM adoption by mandate, kick starting trial projects, and supporting the adoption of BIM. About the author Ajibola Soboyejo is a QS with three years experience.

She works for Altus Group Vancouver as a cost analyst. Ajibola specializes in project estimation, cost planning, and project cost management.

Ajibola is an associate member of the CIQS, an RICS APC candidate, and a PMI Certified Associate in Project Management (CAPM). She possesses both MSc and BSc degrees in Quantity Surveying from the University of Salford UK and the University of Lagos, respectively.

Congratulations Corner Congratulations to the following ‘Designation Holders’ who have qualified as a PQS or CEC (Including reinstatements): CIQS – British Columbia Irene Empleo, CEC Karl Magallanes, PQS Roland Rahoerason, PQS Andrey Tarasov, PQS CIQS – Members at Large Abubakar Abdullahi, CEC Ghassan Abutair, PQS Olawale Akinmoladun, PQS Muibat Alabi, CEC Robert George Barnard, PQS James Francisco Bunda, CEC Parag Dhadphale, PQS Lau Cho Dik, PQS Tam Wai Hung, PQS Peter Charles Laing, PQS Fungai Madziwa, PQS Nyikayanzwa Ndambakuwa, CEC

Buddhika Nivunhella, CEC Selvaraj Ramasamy, PQS Stuart Stothard, PQS Indika Welagedara, PQS CIQS – Maritimes Richard Edwards, PQS Carlos Lavin, CEC Bryan MacLean, PQS Jerred Ramey, CEC CIQS – Ontario Brentnol Archer, PQS Vijay Bichkar, PQS Igor Bogodist, CEC Louis-Philip Bourassa, PQS Elena Buksha, CEC Murat Caliskan, PQS Ayman Chenouda, CEC Rahul Desai, PQS

20 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

Sandip Desai, CEC Maria Dinescu, CEC Allan Gadd, CE Brent Gould, CEC Yali Liang, CEC Poh Fung Liew, PQS Leroy Miller, CEC Mohammad Pourmofidi Neyestanak, PQS Melvin Ranes, PQS Ashley Schaeffer, PQS Haiyan Shao, PQS Anurag Sharma, PQS Prasanna Thuraisingam, CEC Yukun (Grace) Wang, PQS Anita Yaw, PQS Adam Zych, CEC

CIQS – Prairies and NWT Solomon Agbede, PQS Jonathan Corr, CEC Branislav Lapin, PQS Hillary Meju, PQS Richardson Nazar, PQS John Penner, PQS Allen Reid, CEC Timothy Schatkowsky, CEC Michael Volkart, CEC CIQS – Québec Nickolas Lamarche, CEC Natraj Kerry Mohur, CEC Mansour Shami, CEC

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CIQS Congress 2019 Recap 60 years strong

By Alexandra Parliament, CIQS PR & Marketing Consultant

Q

uebec City was the stunning backdrop for the 2019 CIQS Congress. It is one of North America’s oldest settlements and the oldest French-speaking city. Dating back to 1608, Old Quebec is a fortified city with stone buildings and narrow cobblestone streets lined with bistros, sidewalk cafes and quaint boutiques; and it has been deemed a UNESCO World Heritage Site. It offers incredible views of Saint Lawrence River and thanks to some clear days, Congress delegates were able to see as far as the Laurentians from its famed Terrasse Dufferin. The city truly is a bit of old Europe right here at home.

With 60 delegates and 90 guests in total, of which 15% were under 40, Congress 2019 was a tremendous success. This was a special Congress not only as it celebrated the CIQS’s 60th anniversary, but also because it was held under our umbrella as one unified organization for the first time since all regions ratified their votes to become chapters managed by National. This new organizational structure enables CIQS to keep the pulse of the local grassroots

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while sharing a strong branding identity across the country and offering a more solid connection on a national platform for members from every region.

The 2018-2019 Board of Directors met for a day and a half to identify and discuss current industry and organizational issues including those items that formed part of the 2019-2022 Strategic Planning session, which was summarized in the Summer 2019 Edition of the Construction Economist.

The CIQS chair, David Dooks, reviewed the outcome of this brainstorming session during his Strategic Plan 2019-2022 presentation on Saturday morning. The ‘Big Picture’ sections identified by this three-year plan will all be implemented with the best interest of the organization and all its shareholders in mind. These four areas of focus were the CIQS Community Engagement Initiative, Education, the Identifying and Resolving Resource Deficiencies at the CIQS, and the Stakeholders Engagement Plan.

All four of the ‘Big Picture’ areas match up with the Mission and Vision developed during the Strategic Planning session.

MISSION To promote the professional status and gainful employment of Institute members by maintaining high standards of competence and ethics, furthering their education, and encouraging the interchange of knowledge and fellowship with other industry professionals.

VISION • Brand Awareness • Community • Optimize Value • Interdisciplinary Partnerships • Go-To Provider • Elevate Academic Standards Next step is for National staff to write an operational plan that outlines the processes required to accomplish the objectives set forth in the Strategic Plan.

AGM The Annual General Meeting is a mandatory yearly meeting of CIQS members and shareholders where they are presented with an annual report of information about the previous year’s successes and the organization’s performance. This year’s Annual

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 21

2019 CIQS CONGRESS RECAP

General Meeting focused on the specific business aspects of the organization, such as the 2018-2019 audited financial statements and items up for a vote. An annual meeting package was distributed to all members prior to the meeting to allow sufficient time to review the material before voting in person or by proxy. Members with voting rights were asked to vote on the selection of auditors and the Slate of Directors as presented.

It is our pleasure to present this year’s Board of Directors as ratified at the AGM in Quebec City.

Executive Committee • David Dooks, PQS(F) – Chair • Erin Brownlow, PQS – Vice Chair/Treasurer • Sheila Lennon, CAE – Executive Director Directors • Arif Ghaffur, PQS(F) • Wendy Hobbs, PQS(F) • Indu Elapatha, PQS • Jerry Crawford, PQS • Roger Ward, PQS(F) • Tammy Stockley, PQS • Wassim Sultani, ECA

Program overview We kicked off Congress 2019 with a Welcome Reception held on the 23rd floor of Hilton Quebec, which offered stunning sunset views of the city. This event presented conference delegates with the chance to greet old friends and make new ones over a drink and delectable hors d’oeuvres in a social setting, prior to getting absorbed in the educational and business sessions of the conference. The Poutine station was to die for! To liven things up a bit, a local magician was invited to entertain our guests with some slight of hand illusions, which had many of us scratching our heads. All in all, it was the

The Canadian Association of Consulting Quantity Surveyors congratulates the CIQS on its 60 YEARS of leadership of the profession

www.cacqs.ca

22 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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2019 CIQS CONGRESS RECAP

“ Live as you were to die tomorrow; Learn as if you were to live forever.” – Mahatma Ghandi perfect introduction to our 60th Anniversary Celebration-themed conference.

This year’s Congress program shifted more towards an education-focused event, interspersed with networking opportunities where delegates could connect or reconnect with professionals from various areas of the industry and the country. With members required to acquire 50 Continuing Professional Development points annually to maintain their CIQS designations, there is no better way to earn CPD points than at Congress where you can combine important networking with learning!

The 2019 Technical Sessions and Panel Discussions explored emerging industry practices, technology and soft skills that can be used in day-to-day operations. The Technical Program was planned in such a way that delegates were able to interact with the speakers and other industry professionals in an environment conducive to asking questions, sharing best practices and business anecdotes, while connecting with mentors and growing one’s network.

Translators were brought in for the majority of the conference to allow our Frenchspeaking shareholders and speakers to participate in our educational and business sessions in their language of choice.

The networking events include refreshment breaks, a welcome reception, the Chair’s reception and dinner, a networking lunch as well as the AGM and farewell breakfasts.

Technical Session One Prompt Payment & Adjudication: Sweeping Reforms Gather Momentum Speaker: Antoine Aurelis is a Director at Lakeland Consulting, a provider of Commercial Management Expertise with over 25 years of international experience during the pre-contract and delivery phases of complex projects in the public/private sectors. In his role, he has provided advisory services on high profile projects across Canada.

Antoine’s presentation discussed prompt payment reforms across Canada CLICK HERE to return to Table of Contents

and offered background information into how the reform process began, current practices and incoming reforms. The presentation also delved into the global perspective on prompt payment and interim dispute resolution, how prompt payment will affect the construction industry, as well as the fundamentals of statutory adjudication and its potential challenges.

Technical Session Two Analytical Approach to Problem Solving Speaker: Michael Zegarelli is a Director with BTY Group and has ten years of industry experience, of which he spent over seven years working with Public Private Partnership projects in Canada, US, and Europe. During this time,

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2019 CIQS CONGRESS RECAP

he provided various services including facilities management estimation, risk management, benchmarking, and financial and technical review.

Michael discussed the use of optimal methodologies in the analysis, processing and interpretation of information for the purpose of problem solving. He showed how it can be applied to both workplace and everyday situational tasks and how you can mitigate risks without falling victim to cognitive biases.

Technical Session Three International Construction Measurements Standards (ICMS) – 2nd Edition Speaker: Roy Howes is Fluor’s Minerals & Metals (M&M) Functional Estimating Lead and Project Controls and Estimating Department Manager in Vancouver, where he ensures consistency and quality in all capital cost estimates produced, benchmarking and

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working on developing Fluor’s global mining capabilities from a project controls and estimating perspective.

Roy took us down a historical road to highlight why ICMS was adopted and how it has evolved into the standard we know today prior to explaining ICMS in the context of construction costs, problems we encounter when dealing with international construction costs, and the aims and benefits of using ICMS 1st vs 2nd editions. This presentation offered a better understanding of how adopting the ICMS standard benefits professional consultants in the construction industry globally.

Technical Session Four Promoting Collective Intelligence by Developing People (French presentation) Speaker: Catherine Privé is President and CEO of Alia Consulting and has been a partner for over 20 years.

She is a social psychologist specialized in organizational analysis and development. As president, she works to broaden the company’s profile and visibility by presenting at conferences, writing articles, executing policy mandates, sitting on various

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2019 CIQS CONGRESS RECAP

“ Tell me and I forget. Teach me and I remember. Involve me and I learn.” – Benjamin Franklin boards of directors, taking part in professional association activities, and conducting interviews.

Catherine shared best practices when developing and motivating staff. Her presentation focused on strategies that will help leaders develop the collective intelligence within their teams as a way to leverage their talent and make staff feel more efficient and valued in the workplace.

related to harnessing the power of cost data that sits idly in an organization’s estimating system, cost management and procurement systems.

Technical Session Five Earned Value Management: If you can’t measure it, you can’t manage it Speaker: Alain Gregoire, P.Eng, ing, PMP is the Vice President Eastern Canada at Colliers Project Leaders and is a fully bilingual professional who draws upon more than 25 years of project management and municipal engineering experience in delivering major infrastructure projects for public and private sector clients. He has accumulated a wealth of experience on various transportation, transit, water and wastewater projects.

Earned Value Management (EVM) delivers objective, quantitative, consistent performance metrics and strengthened oversight. Alain’s presentation reviewed how EVM has the potential to identify and deliver exactly what clients need as well as why EVM is unique as it measures actual work accomplished (earned) compared to the planned budget.

Panel discussion The sixth and final technical session of the day was an interactive panel discussion focused on emerging technologies, specifically Data, Data Standards, and Analytics to Improve Cost Estimation – Role of ICMS. The panel highlighted how organizations can enhance the overall estimation process and its accuracy by using historical cost data and analytics. The panel discussed the role of standards such as the International Construction Measurement Standards (ICMS) in the enhancement process. They also debated issues

Moderator: Anil Sawhney – Director of the Infrastructure Sector at RICS Panellists: Susan Neil, PQS(F), MRICS – Executive Vice President at Hanscomb

Scott Wilkinson, MRICS, PMP, PQS – Director at BTY Group

Glenn Hultzer, B.SC (QS), MRICS – Partner at A.W. Hooker

Roy Howes, PQS(F) – Director Estimating at Fluor, Mining & Metals (M&M)

Chair’s Reception and Dinner and CIQS 60th Anniversary Celebration It was our true pleasure to welcome over 70 guests to this year’s Chair’s Reception and Dinner at Hilton Quebec. It was an evening of good friends, great food and wonderful entertainment where we had a blast from the past as we received a visit from famous founders who offered us an interactive and hilarious lesson in the history of Quebec City.

Lois Metcalfe Fellowship Awards This year’s Lois Metcalfe Fellowship Awards were presented during Congress 2019 to the following worthy recipients: • Michael Gabert, PQS(F) • Sudhir Jha, CEC(F) • Arif Ghaffur, PQS(F)

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Gordon Pattison Award of Merit This is awarded to a CIQS member for outstanding service to the CIQS that has helped build our organization into the successful Institute it is today. It was David Dook’s great pleasure to present the 2019 Gordon Pattison Award of Merit to Roger Ward, PQS(F). As an award recipient, Mr. Ward has joined a very long list of prominent CIQS members which dates back all the way to 1975 when Gordon Pattison and Frank Helyar received the first awards under this category.

Clive Evans Living Golf Tournament A small group of members spent Saturday afternoon on the links fighting for the top prize at this year’s Clive Evans Living Golf Tournament. The awards were presented during the Chair’s Dinner.

Congratulations to our 2019 Award Winners!

Thank you to our generous sponsors of this year’s Congress.

Their support made it possible for us to bring those special extras such as the branded lanyards, Congress-specific hotel keys, the YQS on-site program, the Chair’s Dinner entertainment, incredible dessert, printed onsite program, and the delectable refreshment breaks.

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2019 CIQS CONGRESS RECAP

industry participants. Altus Group pays a quarterly dividend of $0.15 per share and their shares are traded on TSX under the symbol AIF.

Refreshment Breaks

Hotel Key & YQS Program Sponsor

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YQS Bursary Program The David Lai YQS Congress Bursary Program offers Associates, CEC and PQS members – under 40 years of age in good standing with the CIQS – the opportunity to attend Congress, all expenses paid. Six packages are available each year, one from every chapter. This program is a great opportunity for our younger members to attend Congress and increase their network, while the CIQS gains a new avenue to attract and mentor the next generation of quantity surveyors.

This year’s YQS Bursary Recipients are: • Gabriel Esu, PQS – British Columbia Chapter • Sami Moufti, PQS – Prairies and NWT Chapter • Daniel Josiah, PQS – Ontario Chapter • Elodie Brugnone, Associate – Quebec Chapter • Alexander Ing, Associate – Newfoundland & Labrador

as an ice breaker for them to get to know one another in a more intimate setting than the official Welcome Reception.

We also organized a special outing to the Stadacone Distillery as part of the YQS Program where they went behind the scenes to learn how their spirits are made. First, however, they had to participate in a flash puzzle game where they were whisked aboard an ocean-going vessel back in the early days of global exploration. Their captain suddenly became gravely ill and the ship’s supplies started to run dry. It then became the shipmates’ (our YQS’s) responsibility to find a solution to get them back to terra firma in order to save the ship and the captain.

Land Ho! Finally, we wish to extend our thanks to the Congress Committee that worked diligently throughout the year to plan such a successful, educational and inspirational event.

• Amanda White, PQS – Technical Session Chair • Wassim Sultani, ECA, ing, M.Ing, PMP – Quebec Representative • Sheila Lennon, CAE – Executive Director • Patrice Beaulieu, Web Administrator • Alexandra Parliament, PR/Marketing We hope to see you all at Congress 2020 in Winnipeg, MB on July 9-12!

YQS Bursary recipients were invited to a Meet & Greet on the first day of Congress along with all other ‘under 40’ delegates CLICK HERE to return to Table of Contents

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2019 CIQS CONGRESS RECAP

CIQS 2019 Congress, Quebec City

I

t was indeed a pleasure to attend the CIQS 2019 congress being held in beautiful Quebec City – my first visit and a truly memorable one. My participation started with the Young Quantity Surveyors meet and greet on the evening of Thursday, July 25th where I met the other bursary recipients and Young Quantity Surveyors. Following the meet and greet was the welcome reception where I met many delegates from across Canada. It was great to meet the organizers of this event including members of the CIQS Board who had traveled in from different locations to attend the event and participate in board meetings.

The following day (Friday), I attended all-day technical sessions led by experts on broad range of subjects, including topical aspects such as prompt payment, international construction measurement standards, followed by moderated panel discussions, where key experts evoking much intellectual exchange. All in all, these sessions provided insightful knowledge with active participation from an engaged audience. Presentations were in English or French, with a way of interpretation.

The key highlights of the technical sessions included: • The evolution and importance of prompt payment and the impact on the construction industry.

• The significance of analytical approaches to problem-solving contrasted with cognitive biases.

• Ongoing developments in international construction measurement standards.

“ In addition to meeting new people, I was fortunate to learn many new technical aspects as I continue my journey as a professional Quantity Surveyor.”

• Nurturing and leveraging talent within teams to realise untapped productivity.

• Importance of tracking project performance by using earned value management.

Following the technical sessions, there was an evening social activity for Young Quantity Surveyors held at the Stadaconé Distillery. This was an excellent opportunity for attendees to get to know each other in a relaxed and fun environment. We were given a tour of the distillery, specialising in gin; with a unique aspect as they have incorporated an escape room activity within the tour. It was also great having Sheila Lennon, CIQS Executive Director, and David Dooks, the CIQS Chair, participate in what was a thoroughly enjoyable evening.

Saturday started with breakfast and the Annual General Meeting which preceded the Strategic Plan Session. These morning sessions were well attended as the CIQS Board and Executive Director provided an update on governance aspects to reflect some recent changes at the CIQS and the formation of a forwardlooking strategic plan. The afternoon was clear for delegates to spend time as they wished with there being an opportunity

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for golfers to participate in the Clive Evans Living Golfing Tournament. The evening was taken up by the Chair’s Reception and Dinner at which lighthearted entertainment linked Quebec culture and history together.

In summary, attending the CIQS 2019 Congress in Quebec City was a positive sharing and learning experience. In addition to meeting new people, I was fortunate to learn many new technical aspects as I continue my journey as a professional Quantity Surveyor. I would like to thank the CIQS for providing me this opportunity and a happy 60th anniversary. This is an exciting time for construction economists in Canada as the CIQS goes from strength to strength.

About the author Daniel Josiah, BSc (Hons), PgDip, PQS, MRICS, ACIArb, GSC, is Director of Commercial & Contracts with Lakeland Consulting Inc., where he provides services to a wide range of clients in the private and public sectors on pre-contract, delivery, and contract closeouts. Daniel is also a 2019 YQS Bursary Recipient.

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2019 CIQS CONGRESS RECAP

Rapport Congrès 2019

L

e Canadian Institute of Quantity Surveyors, ou Institut Canadien des Économistes en construction, organise chaque année un congrès afin de rassembler ses délégués. 2019 est une année particulière puisque le CIQS fête ses 60 ans.

Chaque année, le programme de bourse David Lai Young Quantity Surveyor permet à un membre YQS (associé, ECC ou ECA), de chaque région et âgé de moins de 40 ans, de remporter un forfait pour participer au congrès tous frais payés.

Actuellement estimatrice en architecture junior chez MACOGEP, je suis en parallèle des cours en ligne sur les contrats et le code du bâtiment au Canada, en vue d’obtenir la certification ÉCC (Économiste en Construction Certifié). Grâce à cette bourse, j’ai pu participer au congrès de cette année à Québec, une occasion en or pour moi d’élargir mon réseau de connaissances dans le domaine de l’économie de la construction.

Tout le monde a été très accueillant dès mon arrivée lors de la « rencontre du groupe YQS », malgré les différentes langues parlées. Nous avons tout de suite commencé à partager sur nos carrières et entreprises respectives, à se poser des questions sur les projets en cours, nos tâches et responsabilités. Puis nous avons discuté à propos de nos régions et villes de provenance, ainsi que de nos origines. Étant française beaucoup de questions m’ont été posée sur les différences entre les modes de construction et d’estimation selon nos deux pays. Ce fut une occasion fantastique

de faire la connaissance de membres de chaque région du Canada, mais également de Mexico et des Bahamas.

L’organisation autour des YQS était vraiment appréciée, puisqu’elle nous a permis de nous retrouver pour faire collectivement des activités amusantes, comme la visite d’une distillerie, avec une dégustation à la fin et un « escape game ».

Ceci nous a permis de rire ensemble, de nous retrouver dans un cadre différent et de créer des liens. Le groupe YQS continue d’interagir ensemble grâce à l’application Whatsapp.

Les séances techniques ont été très enrichissantes et instructives, les idées qui ont été énoncées me serviront tout au long de ma carrière. Le secteur de la construction étant en perpétuel changement, nous avons besoin de séances informatives comme celles-ci afin de partager avec nos pairs, les nouvelles technologies, les nouveaux processus ou encore comment favoriser l’intelligence collective.

Ce fut une fin de semaine formidable de part ses séances techniques de qualité et magnifique grâce à la diversité des membres y participant. Un tel réseautage au sein de notre industrie, ne serait pas faisable sans notre association professionnelle commune qu’est l’Institut Canadien des Économistes de la Construction (CIQS).

L’expérience a été enrichissante et pleine de rencontres, merci encore à la bourse David Lai YQS qui m’a permis d’y prendre

Happy 60th Anniversary CIQS!

Andrew Heal J.D., LL.M. Partner Certified Specialist Construction Law

De gauche à droite: Juan Carlos Castanon, Mexico; Aniqua Strachan, Bahamas; Gabriel Esu, Vancouver; Elodie Brugnone, Montréal.

part. J’espère pouvoir participer au congrès l’année prochaine à Winnipeg.

A propos de l'auteur Elodie Brugnone a étudié l'économie de la construction en France et travaillé pour une société de gestion de projets pendant trois ans. Elle a ensuite choisie d'élargir ses horizons en voyageant à travers l'Asie, l'Australie et la Nouvelle-Zélande pour une période de cinq ans. Elodie habite à Montréal depuis janvier 2018. Elle a travaillé pour une entreprise de maçonnerie en tant qu'estimatrice de projet durant une année, pour ensuite devenir estimatrice en architecture chez MACOGEP, et ce, depuis janvier 2019. Aujourd'hui, Elodie continue sa progression au sein de l'entreprise MACOGEP tout en étudiant afin d'obtenir la certification ECC dans un premier temps, puis la certification ÉCA dans une second temps.

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2019-09-03 10:40 AM

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60th Anniversary Timeline – 1959 Onwards • The first recorded QS meeting takes place on January 14, 1958.

The committee starts meeting bi-weekly, forming ideas and making progress to build the new organization. These areas of work include developing membership, education, programs, meetings, newsletters, and more. The core members are of British origin, mostly RICS members.

5) To administer a code of conduct.

6) To liaise with allied associations.

7) At a suitable date, to institute examinations for qualifications in the Institute.

1959

Organization: Executive to consist of a President, Vice-President, Hon. Secretary, and Hon. Treasurer.

THE CANADIAN INSTITUTE OF QUANTITY SURVERYORS FOUNDER MEMBERS INVITATION MEETING The place of the quantity surveyor and estunator in the Canadian construction industry is an important one and as yet not co-ordinated into an association.

This has for some time been a matter of concern to certain people in Toronto, amongst them being members of the RICS, aand others holding responsible positions in the building and construction industry. As a result of discussions and meetings it has generally been agreed that the interests of quantity surveyors, estimators, and the construction industry could be served by the formation of an entirely new body embracing RICS members and others of experience in the field of surveying and estimating.

Accordingly, four preparatory meetings have been held to discuss the formation of the such an association, and a synopsis of these meetings is given below: Name: To be the Canadian Institute of Quantity Surveyors Qualifications: Membership of the Royal Institute of Chartered Surveyors qualified in Quantities or Building with one year’s Canadian experience, or membership of any other recognized quantity surveying organization also with one year’s Canadian experience. In addition, anyone who does not have these qualifications, but by experience is considered by the members to be suitable may be invited to join. At a later date an associate membership may be introduced to cover people who are not considered to be adequately qualified as a full member.

Code of Conduct: A code of conduct is to be prepared.

Activities: General meetings once a month.

Finance: To be studied.

Discussions have taken place with the Secretary of the Institute of Chartered Accountants on the questions of forming an organization and obtaining a Charter.

• The committee appoints the

legal firm of Fleming, Smoke and Burgess to act as solicitors to in the application for registration under the Federal Act in Ottawa.

In December, the President announces that the Charter has been approved.

• The first CIQS Newsletter is

published, founded by Gordon Pattison and Alex Cosway.

Objectives: 1) To arrange meetings for the education, fellowship, and general advancement of membership.

2) To promote quantity surveying in Canada.

3) To promote gainful employment of quantity surveyors.

4) To introduce a standard method of measurement.

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 33

A history of

CIQS 1962

1960

• The first offices for the Institute are two basement rooms on

• The Canadian Method of Measurement of Construction Works

• In April, CIQS’ First AGM is held at the Royal York Hotel in Toronto.

• Quebec hosts the AGM for the first time.

606 Jarvis Street, in Toronto. Rent is $50 per month.

“Having called ourselves Quantity Surveyors, it is up to every member of this Institute to ensure that the name is held in respect,” says Malcolm Milton, 1st CIQS President, “and that the standards of conduct and practices required by membership in this Institute are mentioned and enhanced within the Industry.”

• Montreal opens a CIQS chapter, followed by Vancouver, Calgary, and Ottawa.

is published.

1963

• The first CIQS logo appears on the cover of

The Quantity Surveyor, published as the journal of the Institute of Quantity Surveyors. This stays the official design from 1959-1967.

• Mechanical and electrical members are now

accepted, making the CIQS a full quantity surveying service.

1964

• Quantity Surveyor newsletter

1961

• CIQS Newsletter is renamed Quantity

is upgraded and renamed to CIQS Survey.

• At a June 1961 Council meeting, it is

1965

Surveyor, and is taken over by a new team.

announced that the CIQS offices has gotten their first telephone. The monthly charge was $9.05.

• Method of Measurement of

Mechanical Systems is published.

1966

• CIQS membership surpasses 500 members.

1967

Congratulations

• The CIQS Survey is renamed

and

• The first government quantity

Happy 60th Anniversary, CIQS!

The Quantity Surveyor.

surveying department is formed at the Canada Mortgage and Housing Corporation.

1968

• A new logo is adopted by CIQS through a member competition, designed by Frank Helyar.

• The First Executive Director is appointed.

• The Quantity Surveyor is renamed

the CIPHER. The new logo appears for the first time on the cover of the December issue.

1969

• The London Chapter of CIQS is formed.

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1970

1976

• The CIQS offices move to 8 Colbourne Street, Toronto.

1971

• The West Coast hosts the AGM for the first time, in Victoria, BC. 1972

• Lesley S. Wilson becomes the first female member of the Institute.

• This year marks the introduction of provincial

affiliates, which is formed to advance the organization into a network of provincially incorporated associations. The structuring is to be in place before January 31, 1974.

1973

• The Quantity Surveyors of Quebec receives the CIQS Charter (June), and the Quantity Surveyors of British Columbia (now QSBC) receives the CIQS Charter in November.

1974

• Ontario receives the Charter.

1975

CIQS President Bob Spence and Stan Toller signing the QSBC/CIQS agreement.

• Provincial agreements are signed for Ontario, Quebec, and British Columbia.

1977

• The salary survey is published.

1978

• Lois Metcalfe is appointed Executive Director.

“Certainly we have much more diversity in CIQS than ever.” She said in an interview, “There were very few women when I started and now we have a good number of women members.”

1979

• AQSA and NSAQS are formed, and Nova Scotia hosts its first AGM.

1980

• The designation ‘Fellow’ is reintroduced to acknowledge service

to the Institute. A recipient is nominated by the counsel or affiliated body, then after a review, the award is given. This was stopped and reintroduced again in 1990, with much debate over the origin of the term.

Don Hamlett receiving the Award of Merritt from Frank Heylar, 1976.

• The Award of Merit is introduced, awarded to members with

years of devoted service to the Institute. It was renamed the CIQS Gordon Pattison Award of Merit and is still awarded to members of CIQS for outstanding service to the CIQS in making it the fine organization it is today.

• CIQS is elected to membership in the Commonwealth Association of Surveying and Land Economy.

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1981

• Alberta hosts its first AGM. 1982

• The CIPHER publication is cancelled because of lack of funds.

1983

• New bylaws are approved by Ottawa.

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 35

A history of

CIQS

We are very excited about the future vision of the CIQS and honour with pride the past of the organization that produced this fantastic achievement!

Congratulations to the CIQS for 60 successful years!

CongratulaƟons to CIQS on 60 years supporƟng & contribuƟng to Canada’s construcƟon industry!

36 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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1990

1984

• CIQS celebrates its 25th Anniversary.

• Linn Marron-Marshall is elected as the

22nd CIQS President, becoming CIQS’ first female president.

“The 1990s are here, and already we see major changes in our world.” She said, “The outbreak of war looms on our horizon, Ontario has an NDP government, and CIQS has a female president.”

Tony White presenting Linn Maron Marshall with the President’s Medallion.

1991

• CIQS membership reaches 1,000 members.

1992

• New membership categories are introduced.

1993

• The Newfoundland & Labrador Association of Quantity Surveyors is established as an affiliated association.

1985

• The publication of the CIPHER is recommenced.

1986

1994

• The term ‘Fellow’ is reintroduced again, with the election of Joseph Landry and Yves Rouleau.

• CIQS acquires its first computer.

1987

• The last issue of the CIPHER is published, and CIQS transitions to their new publication Construction Economist.

1988

• ‘Professional Quantity Surveyor’ is registered as an official mark.

1995

• In an age of growing technology, CIQS works to develop the

beginnings an online presence. 1995 marks the first year of CIQS on the Internet.

Joseph Rekab, 26th CIQS president said, “CIQS is moving into the 21st century and will soon be connected to the Internet, and CIQS will have it’s own page on the World Wide Web.”

1989

• Peter Solu becomes the first person to pass all 22 examinations.

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 37

A history of

CIQS

Congratulations to the CIQS for setting the standards for excellence in construction and infrastructure economics for 60 years!

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38 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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1996

• The ‘Construction Estimator’ membership category is officially adopted by CIQS.

2006

• CIQS holds its first AGM outside Canada in Nassau, Bahamas.

2007

1997

• CIQS launches a marketing and public relations campaign.

1998

• The CPD program begins its development.

1999

• The Administrative Policies and Procedure Manual is published for Council.

2000

• Newfoundland hosts its first AGM. • The first CIQS golf

tournament is held, later being named the Clive Evans Living Golf Tournament, in honour of a member who made golf an integral part of a CIQS AGM.

Members of NLAQS donated a plaque to commemorate the winner of this tournament every year. However, the original plaque disappeared – stolen, lost, or left behind ‘in a bar or something’. A new plaque was made as a replacement.

• The CIQS bylaws are changed to create out of country chapters.

2008

• CIQS hosts its first PAQS Annual International Conference in Edmonton, AB.

2009

CIQS

• CIQS reaches its

th

Anniversary

AGM Report

50th Anniversary.

T

he 50th CIQS Annual General Meeting was held on Saturday, June 19. This AGM received the highest attendance on record which is a tribute to the progress the Institute has made. Each delegate at the AGM received a book published under the direction of Colin Randall-Smith, Chair of the 50th Anniversary Historical Committee, as a memento of the

2010

occasion. Under the Chairmanship of Orest Stachniak, President, Council presented their reports to the members. Highlights of the meeting included a power point presentation produced by the Historical Committee, with quotes on record of all the CIQS Presidents. Awards of Merit were presented to Graham Randall from OIQS and Doug Eastwell (accepted

By Lois Metcalfe

by Norm Lux) from AQSA for outstanding service to the Institute. The President announced that founding fathers Alex Cosway, Jim Rae and Art Hall were elected as Fellows as well as Andrew Collins from British Columbia and Doug Eastwell from Alberta. At the conclusion of the meeting, Orest turned over the gavel to incoming President Ian Duncan from Ontario.

• In January, qualifying members of the Canadian Institute of Quantity Surveyors (CIQS) are eligible for a streamlined qualification process for Royal Institution of Chartered Surveyors’ (RICS’s) AssocRICS and MRICS designations.

Photo (top left): CIQS Council 2009/10: (Front row L-R) Bruno Pilieci, Ian Duncan, Lois Metcalfe, Orest Stachniak, Herve Couture; (Back row L- R) David Lai, Roy Lewis, Mark Gardin, Mark Russell, Chris Reinert Photo (top right): CIQS Presidents at the AGM: (Front row L-R) Guy Smith, Arthur Hooker, Joe Pendlebury, Linn Marshall, Evan Stregger, Clark Campbell, Walter Strachan, Wayne Fitzpatrick; (Back row L-R) Ian Duncan, Clive Evans, Brian Treharne, Joe Rekab, George Evans, Brian Featherstone, Orest Stachniak Photo (bottom): Delegates at the CIQS 50th AGM

16

| construction economist | www.ciqs.org | summer 2009

• CIQS overall membership has increased by 87% since 2000.

This peaked at 93% in 2008. Retirees & Honourary Life Members has increased by 12%.

2011

2001

• The CPD program is implemented on a voluntary basis.

2002

• CIQS subjects receive Gold Seal accreditation.

2003

• The Memorandum of Understanding is signed with the

Appraisal Institute of Canada and the Royal Institution of Chartered Surveyors.

2004

• CIQS moves to a new office on Nolan Court, in Markham, ON.

2005

• The CPD program becomes mandatory.

• CIQS signs a contract with Craig Kelman & Associates publishing as the Construction Economist continues to grow and evolve.

• CIQS unveils a new brand identity. The new logo and subsequent

marketing campaign were designed to unify the various CIQS regional affiliate organizations from across the country, while illustrating the critical, value-added services CIQS members offers the construction industry. The new logo is by Parcel Design, a Toronto brand strategist and communications design firm.

• The CPD program started requiring members to provide a

minimum of 50 points to renew their PQS/CEC accreditation.

2012

• CIQS revamps their website to align with their new rebranding

to be more responsive to member and industry needs, easier to update, and more reflective of the affiliate associations across Canada. The new website features social media, smartphone browsing capability, video conferencing and interactive CPD forms, something CIQS President Mark Russell says, “would have been in the realms of fantasy when the last website was launched, but are now staples in the new version.”

• Construction Economist is now available in a web-based book format.

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 39

A history of

CIQS

2013

• CIQS hosts their first CIQS Council video-conference meeting, where a motion to proceed is made (subject to approval by the membership at the AGM) to become an Association of Associations under the new Canada Corporations Not-For-Profit Act.

• CIQS launches their website. Lois Metcalfe writes, “The launch included not only an English and French CIQS site but six other websites for our affiliates – CIQS – British Columbia, CIQS – Prairies and NWT, CIQS – Ontario, CIQS – Quebec, CIQS – Maritimes and CIQS – Newfoundland and Labrador in addition to a completely new content management system (back-end).”

A technical support chat line is made available to members.

• CIQS is now on Facebook, Twitter, and LinkedIn.

2017

• CIQS proposes restructuring its governance in order to engage

designation holders, giving them direct governance control; cut administrative cost and burden; improve services provided to designation holders.

2018

• CIQS launches the CIQS Podcast –

Knowledge Counts – Construction Professional Development on the Go’.

This features one-on-one interviews, presentations, and informative discussions from construction industry economists, influencers, and experts. It can be found at www.ciqs.org/english/ciqs-podcast.

• The CIQS governance restructuring is approved, which means that all CIQS designation holders (PQS & CEC) are now corporate members of CIQS.

2014

• An HR/staffing plan is developed and based on the list of tasks

2019

required to operate the Institute, giving CIQS members access to more resources.

• Videos in English and French are recorded and launched by

CIQS. They can now be found on the CIQS YouTube channel.

• CIQS signs the affiliation agreement. The CIQS National Council

thus transforms into a true association with one governing body, instead of many small associations tied together. Two new terms are introduced: Members and Designation Holders.

2015

• CIQS announces a new Editor for Construction Economist,

a new Administrative Assistant, Membership Coordinator, and Web Administrator.

• The 60th Anniversary of CIQS

CIQS, now 60 years old, has just over 2,000 members and stakeholders.

2016

• Lois Metcalfe retires from CIQS’ Executive Director after 38

years of working with CIQS. In her final message, she remarks, “Don’t ever question the value of volunteers. Noah’s Ark was built by volunteers; the Titanic was built by professionals.”

• CIQS hires a new Executive Director, Sheila Lennon, CAE.

Note: This timeline is an amalgamation of information from the Construction Economist, www.ciqs.org, and the 50th Anniversary book titled History of the Canadian Institute of Quantity Surveyors, produced under the direction of Colin Randall-Smith, PQS(F). The book is still available on the CIQS website.

40 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 41

LEADERSHIP INTERVIEW

Interview with Doug Jones PART 1: Dispute project lawyer experience Prior to your practice as a leading international arbitrator, you worked for over 40 years in infrastructure contracting and dispute resolution. Can you tell us more about the types of matters you worked on?

I have been fortunate to have the opportunity to advise on a wide range of infrastructure projects, domestic and international, in my time as a lawyer. I was a Partner and the National Head of the Major Projects, Construction, and International Arbitration practice groups at Clayton Utz until 2014.

I have had experience in public-private partnership (PPP) and private finance initiative (PFI) project delivery for road, rail, power, and defence projects in Australasia and elsewhere. Acting for governments and the private sector in a range of these projects has enabled me to devise innovative ways of bidding successfully for and closing such transactions.

My experience also has included the delivery of infrastructure projects for Department of Defence facilities and equipment acquisitions, airports, ports, roads, and rail projects, acting for owners (both government and private sector), financiers, contractors, consultants and subcontractors. A memorable project was the Taiwan High-Speed Rail PPP (US $18 billion), now a commercial success, where I led a team of lawyers acting for the concession company in Taipei. All the disputes were resolved during that project, with none remaining at its conclusion. I was very proud of that outcome.

How has the international construction industry developed/evolved, in your view, since you began your practice?

I have witnessed many changes to the dispute resolution landscape over my career.

However, in recent years it has become clear that increasing global trade has led to a greater number of complex cross-border disputes. These international disputes can

Doug Jones, AO

involve multiple parties and long-term business relationships requiring a nuanced commercial and legal approach. This will no doubt continue to drive changes in dispute resolution over the coming years.

Recently, statutory adjudication has been introduced in Ontario. It follows the adoption in Common law jurisdictions in the Asia-Pacific region, and it will be fascinating to watch its development here.

PART 2: Adjudication experience What has been your experience in adjudication and dispute boards?

My experience with dispute boards predates my experience in adjudication.

I have been a member of the Dispute Resolution Board Foundation (DRBF) since 1996.

My interest in the dispute board concept as a method of ‘real-time’ project issue resolution has been ongoing. I was influential in the establishment of the Australian branch of the DRBF and have served on its executive since 2006.

I served as President of the Australasian chapter from 2009-2014, and of Region 3 (as it became) from 2014-2017. I am an enthusiastic supporter of dispute boards after observing its positive contribution to project outcomes when acting for clients in major projects and, latterly, in serving as a member of dispute boards.

Statutory adjudication has been adopted as a method of compulsory project dispute resolution in Australia, New Zealand, and other countries where I have practiced. Since its introduction in 1999, I have acted as counsel for parties and as an adjudicator in this process. It has had a profound effect on construction industry dispute resolution.

It should be said, however, that dispute boards have continued to be used in Australia to facilitate projects after the introduction of statutory adjudication and with considerable success. Adjudication has rarely been used in projects that have had the benefit of dispute boards.

It is characterised as a last resort rather than as an active contributor to project issue resolution.

PART 3: International arbitrator experience What is your experience in international arbitration?

My experience encompasses my practice as an arbitrator, involvement in international professional associations and academic writing. I have been involved in over 120 arbitrations in areas including construction, infrastructure, energy, commodities, intellectual property, joint venture, and investor-state disputes; spanning over 30 jurisdictions around the world. I have had experience as arbitrator under a wide range of institutional rules, in disputes of values up to billions of US dollars. I am the Australian government nominee on the ICSID panel of arbitrators.

As well, I have held appointments at several international professional associations, served as the Chair of the Board of Trustees of the Chartered Institute of Arbitrators (CIArb) from 2006-2008, and as CIArb President in 2011. I was also Chair of CIArb's Centenary Celebrations, and, in 2016, I was appointed one of the four Companions of the CIArb. I am currently serving as the President of the International Academy of Construction Lawyers (IACL) and am a Past President of the Australian Centre for International Commercial Arbitration (ACICA). In 2018, I chaired the International Council of Commercial Arbitration (ICCA) Congress hosted in Sydney.

I have published and presented extensively on topics in international arbitration, and I am the author of the textbook Commercial Arbitration in Australia, published by Thomson Reuters, in its 2nd edition.

42 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

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Why do you think arbitration is an effective mechanism for resolving construction disputes?

Arbitration is the preferred method of international dispute resolution, in the construction industry reflected in the number of leading standard form contracts that include arbitration agreements. It is the product of a number of international arbitration’s key advantages. Although the benefits are many, I will mention two.

The first is that arbitral awards are far more assured of international enforcement under the New York Convention than are foreign judgments.

This is a key benefit in the construction industry where participants are often drawn from a range of different countries, and want a method of dispute resolution that will be effective.

The second is the ability of the parties to appoint a decision-maker of their own choosing, such as an arbitrator who specialises in their industry. This allows parties to ensure that their technical and complex disputes will be heard by someone with the expertise needed to provide a sophisticated commercial resolution.

Its use has faded a little in domestic cases where statutory adjudication has been adopted.

What advice do you have for arbitrators/ parties in resolving their disputes?

My work for the last five years has been that of an independent arbitrator, adjudicator and mediator. My answer comes from that perspective.

Arbitrators should do their best within the bounds of party agreement to adopt cost-efficient and expeditious, but fair, means to reach the outcome. This requires taking a proactive approach to understanding the issues in dispute as the case progresses and reviewing the progress with the parties on a regular basis, rather than waiting for a final hearing to learn what is actually in dispute. Regular case management conferences can be of valuable in assisting parties to tailor the proceedings for the purpose of achieving a just and costeffective outcome.

My advice to parties is to concentrate on the strengths of their cases and not argue every conceivable point no matter of the merit.

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PART 4: Links in Canada How did you come to establish a base in Canada? What were your motivations for doing so?

I married a Canadian. Professor Janet Walker and I joined personal forces after the deaths of our spouses and I am delighted to be a permanent resident of Canada, with a home and a professional base here. I am exceptionally fortunate that Janet and I are both in international arbitration, travelling often to work in places remote from Canada.

My connection with Canada, however, pre-dated marrying Janet. I have been an Honorary Fellow of the Canadian College of Construction Lawyers since 2007 and an honorary fellow of the American College of Construction Lawyers since 2009. In that way I became familiar with professional life in Canada and its legal culture – but it is only since I have had a home here that I have really come to know Canadian winters.

Now with my professional base in Toronto, I am keen to play a part in the dispute resolution community here and to offer my services as an arbitrator and adjudicator.

Do you think that Canada is an arbitration-friendly jurisdiction?

The answer to this question must be an unequivocal yes. Both domestically and internationally, the provinces of Canada enjoy modern, forward-thinking arbitration legislation and courts that are uniformly supportive of the arbitration process.

There is a very significant amount of domestic commercial arbitration – more than one finds in a number of other developed common law jurisdictions.

This is a consequence of the quality of the domestic commercial arbitrators.

There is nevertheless room for substantial improvement in the development of Canada as a seat for international commercial arbitration, which is a mission presently undertaken by a number of leaders in the field, including my wife.

What are your future plans for your practice in Canada?

I am hoping to continue to develop my practice as an arbitrator and adjudicator from my base in Toronto. This will no doubt develop along with the international work I am doing in other parts of the world.

In your view, what are the most pressing issues facing the Canadian construction industry now and in the future?

As a newcomer to Canada, there are others more qualified than I am to identify the key issues facing the Canadian construction industry. It does occur to me, however, that significant issues emerge from the cycles of development in the resources and oil and gas industries which present challenges for the industry to maintain resources during downturns and meet demands during periods of peak activity.

The development of public-private partnerships in the provision of public infrastructure is also something I have had longstanding involvement with in Australia.

It seems that despite the use of this delivery method in Canada, more can be done to enhance the public infrastructure, particularly in the transportation area, than is presently occurring. This is a challenge in which the Canadian construction industry has a key interest.

Breaking News Professor Douglas Jones, AO has been appointed to sit as an International Judge in the Singapore International Commercial Court (for the period November 1, 2019 to January 4, 2021).

Doug Jones, AO* is a leading independent arbitrator in international commercial and investor-state disputes with over 40 years' prior experience in infrastructure contracting and dispute resolution. He is a member arbitrator at Arbitration Place in Toronto, a door tenant at Atkin Chambers in London and he has an office in Sydney.

For more information, visit his website at www.dougjones.info.

Officer of the Order of Australia (AO) is an individual appointed for distinguished service of a high degree to Australia or to humanity at large.

*

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

Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 43

PQS MEMBER PROFILE

Watch, listen, learn A P3 industry leader reflects on the impact of early mentors

Marie Foley PQS, LEED AP, MRICS, was born in Toronto, but moved back and forth between Ireland and Canada while growing up. She studied at the Limerick Institute of Technology, where she received a Bachelor of Science in Quantity Surveying as well as a Diploma in Construction Economics and Management. Following a co-op placement, she joined Helyar & Associates, which later merged with two other firms to form the Altus Group in 2005.

She joined BTY Group in 2015 as the Director of P3 Advisory Services in North America. She now leads BTY’s P3 Advisory Services Business Unit and heads the firm’s office in Toronto.

Over the past 19 years she has led technical due diligence services on more than 100 Design-Build-Finance-Maintain P3 projects across Canada, the US, and Turkey. Marie frequently presents at international industry events and is recognized for her leadership in mentoring and advocating to advance the leadership of women in infrastructure.

I

have been extremely fortunate throughout my career to have mentors who inspired me and modelled leadership.

I joined Helyar & Associates as an intern in Toronto in 2000, with their cost management team. Healthcare projects were plenty and so I began with measurement and estimating.

The firm was an exciting place in which to work. I was given a solid technical foundation – big projects, problem solving, and the opportunity

to get involved in nearly anything that was happening in the office.

It was an environment where I understood my technical role and how I fit into the bigger team; one that also gave me the opportunity to observe my leaders closely.

There, the firm mentored me on coordinating teams and facilitating meetings, long before I would ever have occasion to do so. When I was wrong, they told me so, and I quickly learned not to take it personally.

44 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2019

They took me along to meetings, workshops, and presentations, before I had anything to add, so I could watch, listen, and learn. They weren’t only developing my professional skills; they were cultivating my understanding of how they worked together to grow the firm.

With P3’s ramping up around 2003, I began getting involved in Technical Advisory Due Diligence services under the careful watch of a new mentor.

His leadership style was different than I had experienced before, but very effective. Under his guidance I learned new technical skills, including working on different social infrastructure assets: justice, education, recreation, culture, and transportation. I was able to shadow him closely for many years, and watched how he handled meetings with multiple stakeholders, coaxed information, delivered bad news, and managed client expectations. He took the time to explain both technical and soft strategies, and I often needed lots of explanation. He had great patience for To return to Table of Contents CLICK HERE

me and the foundation he provided in P3s enabled me to engage in abundant opportunities for continuous learning.

When I met the partners at BTY, I was eager to learn about what it takes to run a successful consultancy – about growth strategy, entering new markets, and developing new services.

I was immediately impressed by their entrepreneurial approach and willingness to support, and so I joined their team at the start of 2015. The firm provided an ideal opportunity to learn the nuts and bolts about building a business – and BTY with its team approach felt like family right from the start.

BTY’s culture encourages mentoring and developing the next generation of leaders, and I was excited to share and use all the management and leadership skills I had been quietly cataloguing through the years.

I am most proud of the last few years of my career, in my role as Director of P3 Advisory Services. I lead a team and shares best practices, lessons learned, and all the nuanced

soft skills that have shaped me as a professional. We acknowledge and celebrate the big and small successes of team members: positive client feedback, a well-delivered presentation, and an effortless networking event.

Small successes are the foundation for professional confidence. The team I work with is smart, hardworking and fun but, more importantly, extremely supportive of each other.

I am often asked if being a woman has been a challenge for me in the construction industry. My early mentors were all men, who never placed me in a position that made me think I would have a harder time than my male counterparts. Later in my career I became more aware of the challenges women in our industry face, as I tried to mimic what I believed were the leadership qualities I had observed in my mentors – confidence, decisiveness, direct feedback – and I came across instances where I found that those attributes are not always recognized as positive qualities in

a woman. It can be challenging to shake off negative or limiting perceptions sometimes assigned to women in the industry, especially when it comes to leadership. But for progress to continue and scale up, it’s important for me to keep trying. I have become good friends with many strong women who overcome these challenges to succeed and give back, which gives me tremendous inspiration.

Looking back at my experience, the early mentoring opened my imagination to the kind of career and opportunities I could have and built my confidence. Those exceptional mentors set the scene for my career. The soft skills I observed and the advice I was given were not just relevant for my role in the team then, they are still relevant for my role in the team now.

I often share the same advice I was given in those first few years: listen to your clients, ask questions, value everyone’s time, don’t answer if you don’t know, etc. Timeless advice, and I continue to observe.

Our concern for the environment is more than just talk

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Fall 2019 | www.ciqs.org | CONSTRUCTION ECONOMIST | 45

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