Spring 2014 - Breaking Ground #1 by Edmonton Construction Association

ECA

Official Publication of the Edmonton Construction Association

BREAKING GROUND

SPRING 2014

Future shock: Are you ready for what lies ahead in your business?

There’s a RAM for that! $340-million Royal Alberta Museum to become a place of pride for all Albertans

When past presidents speak, people listen: Two past presidents share their thoughts on the diversity of strong leadership

Tomorrow’s future, today:

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ECA Table of contents BREAKING GROUND

10 14 16

Finding opportunity in challenges: A message from ECA President Barry Pfau.

Preparing for the future as we celebrate our past successes: A message from ECA Chairman Marvin Olansky. ECA ‘breaks ground’ with new publication: A message from ECA Executive Director John McNicoll.

The CCA and workforce development: helping industry prepare for the future.

24 26

ACA working for you.

Highlights of accomplishments by ACA Chairman Scott Matheson.

ECA Executive Committee and Directors.

When past presidents speak, people listen: Two past ECA presidents share their thoughts on the diversity of strong leadership. Deb Smith.

30 34

There’s a RAM for that! New $340-million Royal Alberta Museum an inspiring piece of architecture that will become a place of pride for all Albertans. Melanie Franner.

ECA – Together we thrive. The four goals that will create success for our members. Jillian Mitchell.

10215 - 176 Street Edmonton, AB T5S 1M1 Alberta, Canada Phone: (780) 483-1130 Fax: (780) 484-0299 Email: contact@edmca.com Website: www.edmca.com

2014 ECA EXECUTIVE COMMITTEE Barry Pfau, President Chris Ambrozic, Vice-president Dave Bentley, Treasurer Marvin Olansky, Chairman John McNicoll, Executive Director 2014 ECA DIRECTORS Don Barr Roger Buksa Trevor Doucette Paul Forgues Conal Hancherow Garry Humeniuk Alan Kysters Mark Lindquist Jason Mercier Andrew Ross Joseph Rotella Ken Stewart www.edmca.com

44 6

Edmonton Construction Association

Women Building Futures provides construction industry with new, creative ways to attract and retain skilled workers. JudyLynn Archer.

Edmonton Construction Association • SPRING 2014

YBG: Your opportunity to Build a Great career in construction. Melanie Franner.

Publisher Jason Stefanik

Edmonton’s striking Walterdale Bridge begins to take shape. Jillian Mitchell.

66 75 82

Managing Editor Katrina Senyk katrina@delcommunications.com Advertising Sales Manager Dayna Oulion

Alberta Construction Trade Definitions a tool for bidding better. Lisa Fattori.

Our Parents’ Home brings unique, much-needed retirement community to Edmonton. Lisa Fattori.

Future shock: Are you ready for what lies ahead in your business? Michael D. Mangum.

It’s a digital world: ECA’s plan room heads directly into the future. Jillian Mitchell.

Emerging risk in the construction sector: What you need to know about partnering for knowledge and profit. Don C. Barr.

The endangered species: Can a family business survive past the founder? Gordon D. Wusyk.

Gold Seal Certification Program enhances application process, promotes continuing value of certification.

Teamwork makes the dream work: Adler celebrates 30 successful years of service. Jillian Mitchell.

98 8

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 www.delcommunications.com President David Langstaff

From vision to reality:

ECA Breaking Ground

Executive summaries

104

Edmonton Construction Association • SPRING 2014

Index to advertisers

Advertising Sales Gary Barrington Donna Burner Cheryl Ezinicki Corey Frazer Jennifer Hebert Michelle Raike Anthony Romeo Gary Seamans Colin James Trakalo Cover design by Megan Ross www.meganross.ca Production Services Provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director Kathy Cable Layout & Design Dana Jensen Advertising Art Caitlyn Haier Joel Gunter © Copyright 2014. ECA. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, MB R3L 0G5 Email: david@delcommunications.com PRINTED IN CANADA 05/2014

DEL

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Finding opportunity in challenges Message from ECA President Barry Pfau

here are two sides to every coin. Alberta’s robust economy, for example, presents our industry with an abundance of opportunity in every discipline for every firm with proven competence. On the flip side, however, are the economy’s coinciding challenges, namely changes to procurement practices, new technologies, our aging demographic, as well as the shortage of skilled workers.

The Edmonton Construction Association (ECA) prides itself on proactively addressing these and other industry

concerns, many of which have been rendered opportunities in disguise. Procurement The ECA is second in Canada in the number of procurement opportunities provided to our member firms—quite an undertaking, considering we rank fifth in the country by population. Through membership in the ECA, our members have at their fingertips thousands of opportunities every year through COOLNet, a centralized, online procurement hub that is user-friendly—and an experienced staff behind them to help guide them along the way. With respect to procurement strategies, many of our clients are experimenting with new tendering practices and hybrid contractual agreements that combine our standard tried-and-true industry contracts—those being construction management, cost-plus, stipulated price and design-build. While the ECA understands that there have always been deviations from standard Canadian contract documents (CCDC forms) provided by the Canadian Construction Association (CCA), we want to ensure all member firms have a complete understanding of their obligations under these non-standard agreements, and we will provide support for our members through this process—at times, lobbying on their behalf. Technological Advances There are numerous technological advances in our industry that we are dealing with, primarily in respect to scheduling, project management software and, of course, BIM (Building Information Modeling). BIM represents a major change in our industry as it offers a three-dimensional virtual model of the project being constructed, providing for clash detections and allowing a fourth-dimension of time to be factored in. Provided the consulting firms, general contractors and sub-contractors understand BIM, it is a very powerful tool that can assist greatly in the construction activities on the project. The ECA supports BIM wholly and has provided numerous introductory courses to BIM with our fully equipped BIM lab. We intend to expand our BIM support to members over the coming years.

Edmonton Construction Association • SPRING 2014

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Demographics Demographically, we have an aging population, resulting in less skilled tradespeople to perform the tasks at hand. Over the last 20 years, many young people have chosen fields outside of construction. The ECA understands the need for quality tradespeople today and in the future, and has been a huge promoter of the apprenticeship training program offered through NAIT (Northern Alberta Institute of Technology), awarding numerous scholarships and program monies over the years. Additionally, the newly formed Young Builders Group (YBG), led by our new director Andrew Ross, is an initiative of ours to ensure succession health and a development commitment for the future of construction leadership. The focus of the group is primarily on those individuals between 20 and 40 years old who are in the “first half” of their construction careers. The YBG provides a platform for our young professionals to collaborate with peers outside of their own companies and to develop, over time, a voice—a voice that will help shape the future for our industry. These people will become role models and our future business leaders and decision-makers. The ECA believes that many of these individuals will also participate in the ECA from a volunteer perspective and/or as board members in the years ahead.

a misunderstanding of how the program works or how it is intended to shore up our local labour shortage, specifically speaking to Alberta. In truth, these workers are here to help employers address specific labour challenges, and through the CIC (Citizenship and Immigration Canada) and ESDC (Employment and Social Development Canada), they ensure the TFWs support economic growth in our region, which in turn will provide further opportunities for all Canadians. There is much work that precedes bringing in people from outof-country, in that the employer most often must complete a LMO (Labour Market Opinion) and submit to the government for review and approval. Bringing in TFWs is not an effort to reduce wages in the industry, as the employer must maintain pay scales—otherwise they would of course lose staff, which would counteract the efforts of bringing in people to perform the work necessary. As well, the employer must cover the medical and health insurance and WCB (Workers’ Compensation Board) costs, just as they would with every employee; this is legislated. The ECA supports the Temporary Foreign Worker program and will help direct our member firms to the regulatory agencies to better understand their obligations and the steps necessary to bring skilled people to Canada. In short, these initiatives—combined with our realignment with the Alberta Construction Association (ACA), additional relevant and

Shortage of Skilled Workers Lastly, the Temporary Foreign Worker (TFW) program has received a lot of negative press over recent months—some of it may be due to

meaningful courses for our member firms, added networking opportunities, and providing a hub for procurement—align with our longterm strategic goal of being the centre of construction excellence. V

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Preparing for the future as we celebrate our past successes A message from ECA Chairman Marvin Olansky

am excited, as the Chairman of the ECA, to be part of a team that envisioned a greater outreach—not only to our members, but also to a larger audience through ECA Breaking Ground. This inaugural issue allows us to look back at our success and look forward to the exciting and dynamic years ahead in the construction industry.

Looking Back: There is a feature article about two past presidents – John Moquin and Paul Verhesen; it is our hope that you can learn from their experiences. Thank you, John and Paul, for your contributions to the industry and to the ECA. We celebrate the decade-long work of Women Building Futures as they add value to our companies by leveraging an overlooked demographic, providing much-needed tradespeople. You’ll find us reminiscing with an old friend, our former executive vice-president Gord MacPherson, the “Old Wrinkly Guy” himself, about the paper plan rooms and how we have emerged into the 21st century with a refreshed and integrated COOLNet Alberta. Looking Forward: An article on the new Alberta Construction Trade Definitions helps you understand how we change with the times and adapt to technology. You’ll find out about our Young Builders Group, a new initiative at the ECA that is gaining ground rapidly and works to build the leadership capacity of those who are in the firsthalf of their construction career. Finally, we see this as one more mechanism to provide you with great information on how to do business better and enjoy the success of yourselves and others through our featured projects. We hope you enjoy this inaugural edition of ECA Breaking Ground. Here’s to the start of a new, yet-to-be-long-held ECA tradition! V

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ECA ‘breaks ground’ with new publication A message from ECA Executive Director John McNicoll

CA Breaking Ground is our new ECA magazine – for our members and all of our industry friends. Construction is complex and sophisticated. Magazine contributors will have expertise and viewpoints that will help you see the forest and each tree! Our unique Edmonton market, culture and ways of doing construction will create discussion, reflection and debate. This local magazine will help us all to know ourselves and to see our industry issues with fresh eyes. By clarifying issues and critical information, we hope to serve you and help you grow your business in an exciting time of regional economic strength. Norm Pite, my shop teacher, used to say, “Sharpen your saw – work smarter, not harder”. We hope to help you sharpen your saw and work smarter by providing insights in ECA Breaking Ground that will wisely inform your business decisions. Please help us serve you better and give us feedback, ideas for articles, and comments by emailing us: breakingground@ edmca.com. Thank you in advance for your engagement and feedback. Huge thanks to all our first-time advertisers. All the best in ECA Breaking Ground as you start new projects this season. Under construction, John McNicoll

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and workforce development The Challenge The latest labour market information for the construction industry published by BuildForce Canada states that the construction industry will need to find some 299,000 new workers by 2023 to keep pace with demand and to replace those workers retiring in the intervening period. The Canadian Construction Association (CCA) is a full member of BuildForce, having helped with its re-organization, and continues to support BuildForce financially. Workforce development, in terms of recruitment, training and retention, will undoubtedly continue to be a major challenge for the industry going forward. The Solutions There is no one solution to meet the foregoing labour market challenges. It will take further efforts by the industry in all of the following areas: 1. Greater efforts to attract more youth and traditionally under-represented groups (e.g., women and Aboriginal people) into the industry. Many of the CCA’s partner associations at the local, regional and provincial levels already do a great job in this area; 2. Continued efforts to counter the negative image associated with working in the construction industry. Again, many of the CCA’s partner associations do a very good job of promoting a positive industry image; 3. Increasing labour mobility, including the mobility of apprentices;

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4. Supporting apprenticeship training; 5. Ensuring sufficient training capacity exists at the community college level and elsewhere; and 6. Continuing to make immigration policies and processes in Canada more responsive to industry’s needs. What is the CCA doing in this regard? The CCA works to promote construction as a career of first choice through its involvement in and support of the good work of the Canadian Apprenticeship Forum and BuildForce Canada. The CCA also hosts a special Civil Construction Careers website (visit www. careersincivilconstruction.ca). The CCA has successfully lobbied for tax credits and other tax incentives to support apprenticeship training. The CCA is also working with groups like the Canadian Council of Directors of Apprenticeship (CCDA) to improve worker mobility through the enhancement of the Red Seal program and apprenticeship harmonization efforts. The CCDA is seeking to harmonize training and certification requirements in the Red Seal trades in a pilot program that focuses on 10 trades. The purpose is to identify key differences and to attempt to harmonize where possible. The CCA National Gold Seal Certification Program establishes a national standard for construction management occupations, which helps to raise the profile of the industry while at the same time promotes ongoing professional development and mobility. With regard to training capacity, the CCA works very closely with the Association of Canadian Community Colleges (ACCC) and is involved in an ACCC-led In-

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IN BRIEF The Challenge

training capacity exists at the community

with groups like the Canadian Council

The construction industry will need to

college level and elsewhere; and immigra-

of Directors of Apprenticeship (CCDA) to

find some 299,000 new workers by 2023

tion policies and processes in Canada will

improve worker mobility through the en-

in order to keep pace with demand and to

need to be made more responsive to in-

hancement of the Red Seal program and

replace those workers retiring in the inter-

dustry’s needs.

apprenticeship

harmonization

efforts.

The CCA works very closely with the As-

vening period. What is CCA doing to help?

sociation of Canadian Community Col-

The CCA works to promote construc-

leges (ACCC) and is involved in an ACCC-

It will take further efforts by the indus-

tion as a career of first choice, hosts a

led Industry-College Coalition, and is also

try to attract more youth and tradition-

special Civil Construction Careers web-

continuing to seek immigration reforms

ally under-represented groups; increase

site (www.careersincivilconstruction.ca),

that will make the entry of foreign-trained

labour mobility, including the mobility

has successfully lobbied for tax credits

construction workers on both a temporary

of apprentices; increase support for ap-

and other tax incentives to support ap-

and permanent basis more responsive to

prenticeship training; ensure sufficient

prenticeship training, and is working

the needs of construction employers.

The Solutions

dustry-College Coalition. The CCA also spearheaded an earlier coalition with ACCC and national employer groups that directly resulted in the Federal Government’s Knowledge Infrastructure Program that brought millions of dollars in investments to college training infrastructure. The CCA is also continuing to seek immigration reforms that will make the entry of foreign-trained construction workers on both a temporary and permanent basis more responsive to the needs of construc-

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tion employers. The new Federal Skilled Trades Program that went into effect in 2013 is one example of positive reforms in this area. In the areas of recruitment and retention, the CCA took the excellent work by partner associations and converted it into a national document that is now being used right across the country. For further information, please visit www.cca-acc.com. V

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ACA highlights

Government advocacy, safety, standard practices, and research and technology By Scott Matheson, Chairman, Alberta Construction Association

he highlight of 2013 was the rejoining of the Edmonton Construction Association to the Alberta Construction Association. This is a great step for Alberta’s construction industry. The ECA is a highly respected and professional organization whose board, membership, and staff add tremendous expertise to help address the many challenges and opportunities facing our industry. A united industry provides certainty for our clients and strength to our advocacy. Other highlights include: Government Advocacy • Maintaining predictable, consistent, and adequate provincial and municipal investment in infrastructure. ACA submissions to government emphasize the importance of infrastructure, the costs of inadequate investment, and steps industry takes to provide value for the taxpayer. • Keeping training clear of labour relations issues. The ACA continues to monitor to ensure our apprenticeship system

Our work on: Schools, Institutions, Medical, & Leaseholds

•

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•

does not become fragmented through public funding of private delivery of apprenticeship training. The ACA is opposed to public funding of apprenticeship training by third parties. The ACA provides input for consideration by the Alberta Government, should they require contractors to utilize apprentices in order to bid government work. The ACA and partner associations have submitted a proposal to gather data to identify where action is needed. Government has requested a follow-up meeting to discuss. Continued advocacy for sensible immigration programs. The ACA is pleased that federal Minister Kenney has raised the possibility of new pilot programs to better address employer needs. Strengthened partnerships with school boards, post-secondaries, and with other construction associations for policies and programs to support the development of a skilled domestic construction workforce. The ACA is involved in industry partnerships in both Calgary and Edmonton and is looking to share practices with other Alberta communities. Educational best-practice seminars for public procurers of design and construction services. Piloting of seminars underway. Collaborate to provide industry advice to Alberta Infrastructure. The ACA partners with the Consulting Engineers of Alberta and Consulting Architects of Alberta on several initiatives. Creation of ACCERT (Alberta Consulting Construction Emergency response

Team). The ACA cofounded ACCERT with the Consulting Engineers, Consulting Architects, and Alberta Roadbuilders in response to the southern Alberta floods. ACCERT will provide project delivery capacity when government resources are overstretched in recovering from natural disasters. Safety/WCB • Input to Occupational Health and Safety’s Worksafe Alberta strategy. Former ACA Safety/WCB chairman Brian Freemark has been appointed to the WorkSafe committee. • Continued input to implementation of occupational health and safety administrative penalties and worksite tickets. The ACA will monitor the implementation of administrative fines and worksite ticketing. The ACA also provided industry input to Employer Review Phase 2. • Dialogue with the WCB concerning interpretation of the Refusal of Modified Duties policy. The ACA is requesting that WCB review its policies, particularly the application of no-fault to postincident employment actions. • Managing exposure to silica dust. The ACA is gathering information on industry best practices. Standard Practices • Recommendations for two changes to Alberta’s Builders’ Lien Act (BLA): mandatory annual, progressive release of holdback, and Crown bound to BLA. ACA advocacy with Service Alberta to proceed with industry consultations regarding mandatory progressive release is ongoing. • Advocacy with Alberta Health Services and other owners for adoption of industry standard practices. ACA advocacy concerning adoption of industry best practices continues. • The ACA has struck an ad hoc committee to review Ontario’s Prompt Payment Bill 69. The Ontario legislation is intended to complement liens legislation. • Updating of Trade Definitions. A comprehensive review and update led by the Edmonton Construction Association has

been published as the 2014 Trade Definitions. The Definitions will be a living document with periodic revisions.

Modeling). The ACA serves on the aceBIM Board. • Partnerships to showcase the applied research capabilities of Alberta colleges

Research and Technology

and technical institutes. The Federal

• Service partnerships with Productiv-

NSERC (National Science Engineering

ity Alberta. The ACA is providing input

Research Council) is funding Technology

to Productivity Alberta and Alberta In-

Access Centres (TACs) to connect tech in-

frastructure regarding a pilot project for

stitutes, colleges and businesses in order

Integrated Project Delivery (IPD).

to speed technology development and

• Initiatives with aceBIM (Alberta Centre

adoption. To date, the ACA has written

for Excellence for Building Information

letters of support for SAIT’s application

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for their Green Building Centre and for Red

the membership. The ACA continues to work

Deer College’s Innovation in Manufacturing

at improving connections with the grassroots

Centre.

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ACA’s effectiveness in serving industry has

and work to your benefit. With your continued

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EXECUTIVE COMMITTEE President Barry Pfau Ledcor Construction Limited

Chairman Marvin Olansky A & H Steel Ltd.

Vice-president Chris Ambrozic Scorpio Masonry (Northern) Inc.

John McNicoll Edmonton Construction Association

Treasurer Dave Bentley HUB International Phoenix Insurance Brokers

Edmonton Construction Association â&#x20AC;˘ SPRING 2014

Executive Director

EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE

Treasurer President Treasurer President Dave Bentley President Barry PfauTreasurer Dave Bentley Barry Pfau Dave Bentley HUB Internatio Barry Pfau Ledcor Construction Limited HUB International Ledcor Construction Limited Phoenix Insura HUB International Ledcor Construction Limited Phoenix Insurance Brokers Phoenix Insurance Brokers Vice President Chairman Vice President Chairman Vice President Chris Ambrozic Marvin Olansky Chris Ambrozic Marvin(Northern) Olansky Inc. A & H Steel Ltd. Chris Ambrozic Scorpio Masonry Scorpio Masonry (Northern) Inc. A & H Steel Ltd. Scorpio Masonry (Northern) Inc.

DIRECTORS Don Barr Lloyd Sadd Insurance Brokers Ltd.

DIRECTORS

DIRECTORS DIRECTORS

AlanDon Kysters Barr Don Barr Don Barr Lloyd Sadd Brokers Ltd. PCLBrokers Construction Management Inc. Lloyd Sadd Insurance Ltd.Insurance Lloyd Sadd Insurance Brokers Ltd. M.W. (Mark) LindquistM.W. (Mark M.W. (Mark) LindquistEmcee Construction and Emcee Con Emcee Construction and Manageme Management Ltd. Mark Lindquist Roger Buksa Management Ltd. Roger Buksa Roger Buksa Arpi’s North Inc. and Management Ltd. Construction Arpi’s North Inc. Emcee Arpi’s North Inc. J.P (Jason) Mercier J.P (Jason J.P (Jason) Mercier A & B Concrete Pumping A &(2007) B Conc L Jason Mercier A & B Concrete Pumping (2007) Ltd.

Roger Buksa Arpi’s North Inc. Trevor Doucette Trevor Doucette Graham Construction and Engineering Inc.

Trevor Doucette Trevor Doucette Construction and Engineering A and & Graham BEngineering Concrete Pumping (2007) Ltd.Inc. Graham Construction Inc. Andrew Ross Graham Construction and Engineering Inc.

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Learning from the past for success in the future By Deb Smith

wo past presidents of the Edmonton Construction Association (ECA) exemplify the diversity of strong leadership that has helped to build the reputation and success of Alberta’s construction industry, steering it through the inevitable booms and busts of change. John Moquin, vice-president and general manager of Lehigh Hanson Canada, parent company to Inland Concrete, took his place as president of the ECA in 2003. Before that, he worked through all the roles of the ECA executive committee, a 10-year process of diverse learning and developing strategies that reflects his career path in the construction industry. “I started working for Consolidated Concrete—a summer job that became a career,” says Moquin. Lehigh Hanson, globally known as Heidelberg Cement, supplies cement, aggregates, ready-mixed concrete, asphalt and a range of other building materials to the construction industry. “I’ve managed all our product lines at one time or another, so I’ve been able to move around and experience different work within the construction realm.” While working, he earned a Business Management certificate from the University of Alberta to apply to his diverse working and volunteering experiences. Another lifelong learner, Paul Verhesen served as president of the ECA in 2011, bringing his “outside the box” style of management to the association. President and CEO of Clark Builders, Verhesen is known around his company as the “innovation enabler,” using his ex-

perience and openness to new ideas to lead Clark Builders seamlessly through the transition of ownership to a partnership with Turner Construction in that same year. Verhesen developed his can-do management style through extensive experience on the contractor side of the construction industry. “My first job was working for a residential builder,” he recalls. “I’ve worked for a midsized contractor, started my own construction company, and now, at Clark Builders, I’m working with a great team for a large contractor.” After getting his engineering degree with a construction minor, Verhesen moved towards the office side of the construction business although even today, he wonders if it’s not too late to get his journeyman ticket. “I’m a great believer in giving back,” says Verhesen. “You can either complain about stuff or you can do something about it.” As a man who puts actions to his beliefs, Verhesen currently sits on the boards for both the Alberta and the Canadian construction associations, reporting back to the ECA as the past president representative. In the same spirit of serving the industry, Moquin has continued his volunteer commitment, taking a place on the Alberta Construction Association Board and as president of both the Alberta Sand & Gravel Association and the Alberta Ready Mix Concrete Association. In recognition of his outstanding contributions to the construction industry, Moquin was awarded the prestigious Claude Alston Award. “For me, when I retire, that’s going to be one of the best things on my resume,” says Moquin.

John Moquin took his place as president of the ECA in 2003. Before that, he worked through all the roles of the ECA executive committee, a 10year process of diverse learning and developing strategies that reflects his career path in the construction industry.

Another lifelong learner, Paul Verhesen served as president of the ECA in 2011, bringing his “outside the box” style of management to the association. 26

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“The primary role of the association then was to operate planrooms and administer the Alberta Construction Tendering System (ACTS),” Moquin explains. “When bidding was going on, our planrooms were very active. Since those days, the world of technology changed planrooms into virtual spaces with electronic access to information available to all.” Both men recognize that the industry is at the top of a cycle right now and predict it will turn down in the future, as has happened before. They each bring a perspective on riding out the cycle based on personal and professional experiences within the industry. Moquin began his service to the ECA membership in the early ’90s, a time of economic downturn in the industry. “At my very first association meeting, we made the decision to close down one of the two city planrooms,” he recalls. “The primary role of the association then was to operate planrooms and administer the Alberta Construction Tendering System (ACTS). When bidding was going on, our planrooms were very active. Since those days, the world of technology changed planrooms into virtual spaces with electronic access to information available to all.”

was ECA president in 2011 continue today. “My concern is that we’re taking this upward cycle for granted, and that we’re not always looking to improve, whether it’s productivity or innovation.” The pressure to find and keep enough talent and expertise is enormous and not easily relieved. “It’s all good that people are moving to Alberta,” says Verhesen. “But there aren’t enough of them and not fast enough.” Contractors now have to consider people capacity as being a limiting resource when considering taking on projects. True to his philosophy of healthy development through innovation and product enhancement, Verhesen sees increasing productivity as the solution for the labour shortage now as well as protection against the inevitable downward turn of the wheel. “I would suggest that we’re closer to a sustainable balance of work/workers than we have been for a long time. But we can’t continue to count on $100/barrel oil; we need to look after our own industry and sup-

“I’m a great believer in giving back,” says Verhesen. “You can either complain about stuff or you can do something about it.”

ply chain for the future.” Looking back across a varied career in the construction industry on the supplier side, Moquin also anticipates there will come a day again when there will be less work to go around with more competition for jobs. “That’s when the ECA will be there to bring ACTS or

When the industry cycle moved into the upswing, suddenly there was more work than people to accomplish it, and the entire construction methodology changed. “The association dropped the ACTS program to go to more of a negotiated style of acquiring work. These days a general contractor looks at a job and decides whether or not he can do it based on available resources.” For Verhesen, the challenges that faced the industry when he

a similar tendering system back into play,” he predicts. “Yes, there’s been substantial change; as you get older, there’s always change, but everything’s the same.” Moquin and Verhesen have pledged their experience and commitment to the ECA and the construction industry at large, looking toward a balanced future no matter where the wheel of fortune rolls. V jcf-18-horizontal.pdf 1 06/02/2014 2:27:39 PM

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New Royal Alberta Museum: A dynamic duo of past and present By Melanie Franner

or over five decades, the Royal Alberta Museum has played homage to the province’s natural and human history with more than 10 million objects in its collection. But the need to expand finally outgrew existing space limitations. The Alberta Government announced plans to build a new facility in April 2011. Once complete—in the heart of the Edmonton’s thriving Arts District—the new museum will double the amount of gallery space, offer direct connections to public transit and have the ability to host major international exhibits and rare artifacts. An inspiring piece of architecture that brings together the old and the new, the Royal Alberta Museum calls on the expertise

Edmonton Construction Association • SPRING 2014

of several leading design and construction companies to create an engaging and dynamic environment that will provide lasting appeal to visitors of all generations. Celebrating History The international design-build competition for the new Royal Alberta Museum was held in 2011 and eventually awarded to the team of Ledcor Design-Build (Alberta) Inc., DIALOG and Lundholm Associates Architects. “The government is looking for a museum that will have a special place of pride in the hearts of Albertans,” explains Donna Clare, principal, DIALOG. The mission of the museum is to preserve and tell the story of Alberta—the experience of people and places

over time—and inspire Albertans to explore and understand the world around them. “Our design concept seeks to be a memorable synthesis of architecture, the museum visitor experience, the collections and the site itself.” To that end, the building will offer breathtaking views of the city. Its glass façade will admit light into the public spaces during the day and showcase the activities within during the night. The building’s lobby will be connected to the sky, the gardens and the terraces. Corridors will become display cases. “The Royal Albert Museum will be without walls,” states Clare. “It will be a display case full of stories to tell and knowledge to share.” The $340-million project will see the new museum erected on the former Federal Post Office site in downtown Edmonton. The 1966 building’s original Ernestine Tahedl mosaics will be preserved and incorporated into the new museum’s exterior façade as a testament to the history and heritage of the building. Also included will be the original Provincial Museum of Alberta’s bronze friezes. Mobilization on the existing Federal Post Office site began shortly after the contract was awarded. “We started abatement work on the site for hazardous materials in July 2012,” states Mike Roper, senior project manager, Ledcor Design-Build. “It was very challenging and sensitive work to undertake in the active post office and took us about a year to complete.” Excavation work began in January 2014 and piling work began in February 2014. Construction is scheduled to be completed in mid-2016, with the grand opening taking place in late 2017 to allow for time to acclimatize the building and install the exhibits and collections. “It is very important for the public to have this type of facility,” notes Roper. “It will be a landmark building—a place for people to return to over and over again. It will be a place for people of all ages to learn and appreciate our history.” Roper gives full credit to the team working on the project for creating such a stunning architectural design that incorporates so many essential elements. “There has been an extraordinary level of collaboration between ourselves, the owner and the design team,” he states. “Everyone

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“It is very important for the public to have this type of facility. It will be a landmark building—a place for people to return to over and over again; a place for people of all ages to learn and appreciate our history.”

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The Human History and Natural History galleries will each measure approximately 30,000 square feet. There will be a 6,000-plus-square-foot Children’s Gallery and a 12,000-squarefoot Feature Exhibition Gallery. Plus, there will be another 47,000 square feet slated for collections and curatorial space. At the core of the museum will be a state-of-the-art climatic control system. In fact, there will be many different climatic controls throughout the facility, each of which will be able to be customized for individual gallery collections and/or travelling exhibitions.

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“The government is looking for a museum that will have a special place of pride in the hearts of Albertans. Our design concept seeks to be a memorable synthesis of architecture, the museum visitor experience, the collections and the site itself.” The new Royal Alberta Museum is designed to educate, inspire and entice young and old (and everyone in between). The building’s grand two-storey, glass-walled lobby will serve as a central focal point, inviting those on the inside out and those on the outside in. The open and spacious design will make its inner corridors and spaces accessible and easy to traverse. And its strong historical significance will serve to only strengthen its already strong ties to the community. “We’re thrilled that the construction work on the new Royal Alberta Museum is now underway and look forward to the day when

we can unveil the landmark architectural building and its fabulous galleries to the public,” states Tom Thurston, director of Capital Development, Royal Alberta Museum, Culture. “This project has been many years in the making and is possible only through the ongoing hard work and collaboration of many different teams and their team members. Together, we are creating a truly distinctive building that will pay tribute to both the natural and human history of our province. It will become a place of pride for all Albertans—and perfectly positions the museum to meet its ongoing mandate to research and share the Alberta story with many generations yet to come.” V

ECA Breaking Ground • SPRING 2014 33

The four pillars

of success By Jillian Mitchell

he Edmonton Construction Association (ECA) prides itself on being the “best tool on the belt”—as the largest commer-

cial construction association in Western

ward,” he says. “There’s no simple path to success. You need a whole community of support. We are focused on enabling our members to become effective and empowered strategic leaders.”

Canada, with close to 1,200 members. They do so, however, with the recognition that even the best tool must be properly maintained. On June 8, 2013, a full-day strategic meeting of the ECA Board was held to solidify the association’s guiding principles and future direction. The meeting resulted in four identified areas of focus—collaboration, education, networking and procurement—with which to guide the association forward. Though seemingly separate, the four pillars are, in fact, interwoven to create a unified and desired vision of the future, says ECA executive director John McNicoll. “The construction industry is extremely complex, a lot of risk, sometimes great re-

Edmonton Construction Association • SPRING 2014

Collaboration The ECA was founded in 1931 on the principle of collaboration and has remained strong in its conviction throughout the years. A fresh approach to a traditional idea, the ECA has recently branched out in new ways for further collaboration. As McNicoll suggests, successful associations require the deep roots of a collaborative leadership culture. “If we all work together, we can create a better environment for all, even though we compete with each other. Canada is among the best in the world [for construction] and our product is being exported all over the world. There is an incredible opportunity for people to de-

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“One of the problems we’re addressing with government is the belief that construction is a third-rate occupation,” McNicoll explains. “I think if people really saw the financial opportunity, they might run—not walk—from medical and law schools into construction.”

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velop their careers in construction because the demand is so high and the leadership demand is going up, as well.” For McNicoll and fellow ECA board executives, collaboration is an all-encompassing idea, speaking to the community within the entire ECA membership, as well as with stakeholders and affiliate organizations such as the Merit Contractors Association, the Canadian Construction Association (CCA), Defense Construction Canada (DCC), Alberta Infrastructure, Alberta Health Services, and the City of Edmonton, as well as other local municipalities. Renewed collaboration with the Alberta Construction Association (ACA) and the eight other local construction associations (LCAs) in the province, as well as the continual partnership with the CCA, presents a strong, united voice for the province and nation’s construction sector. “We saw opportunity to increase cooperation and collaboration,” McNicoll says of the ECA’s decision to rejoin the ACA. “The board, in our strategic planning, has decided to rebuild relationships and we have been successful in doing that. All the local construction associations of the province have contributed greatly to the spirit of collaboration.” Education Leading and learning go hand-in-hand. As such, the association is dedicated to promoting member success through a variety of educational opportunities. Classes and seminars on a variety of industry topics, such as insurance, bonding, leads, accounting, technology, safety, and succession planning, are among the most

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is the belief that construction is a third-rate occupation,” he says. “I think if people really saw the financial opportunity, they might run—not walk—from medical and law schools into construction.” Networking For the ECA, community relationships and friendships are even as important as work. Thus, regular networking events—a total of 15 per year—offer the best mix of business and pleasure. Whether the spring and summer barbeques or the Third Thursday gatherings in winter, there is much opportunity through the ECA to meet with fellow members. Building careers is, in truth, what the ECA is all about, and networking is the perfect approach. The association has created supplementary groups to offer its members additional support. The Young Builders Group (YBG), for McNicoll, is a most exciting initiative. The group for those in the first-half of their construction careers promotes the growth and development of young construction professionals through education, community activity and networking, with the goal of strengthening the construction industry’s social capital and fabric in Edmonton for the next generation. “Let’s say 40,000 [people] in Edmonton work in commercial construction. Of those, half are between the ages of 20 and 40. What

“There’s no simple path to success,” McNicoll states. “You need a whole community of support. We are focused on enabling our members to become effective and empowered strategic leaders.” are we doing for them?” McNicoll poses. “Our board has been asking that question recently—what we can do to engage them, to nurture them in their careers, to give them support and a network, and to give them opportunities for leadership, as they are the future leaders of the ECA. For all this we created the Young Builders Group.” As McNicoll says, life is not a pursuit of depression; it is a pursuit of fullness of life with adventure, balance, and healthy relationships. In his mind, networking and its subsequent events encourage these parts of our lives. “We’re trying to encourage people to get out and get connected, and to contribute. It really charges your batteries,” he says, noting that the ECA is built on hundreds of volunteered hours of contribution. “We want our people to get to know other members, and to develop their careers in construction. Sometimes you need opportunity and knowledge and conversation with people outside of your own company.” Procurement One of the ECA’s primary focuses is providing procurement opportunities to member firms. As such, the ECA recently joined COOLNet Alberta, a central online hub for all public and private project opportunities in Alberta. As McNicoll relays, this initiative spurred as a means to decrease fragmentation within industry. “In order to decrease the fragmentation of multiple listings for public tendering, we thought to have a unified approach in the province,” he says. “At this point, we’re considered to be the most cooperative, most collaborative, multi-city, multiple-LCA province in the country, and we are the least fragmented in approach and software. In fact, we share all our plans with each other in the province.”

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Boasting the most tenders in the country, COOLNet Alberta allows access to open and fair bidding practices, which in turn encourage a strong procurement solution that earns a good reputation and trust, says McNicoll. “We’re helping people understand the market, approach the market, access business in the market, and that has some broad implications for our other goals, as well,” he says. “In order to help people procure work, we help people and companies to grow, to collaborate, to network and to develop expertise through education.” V

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SAIT POLYTECHNIC’S BLENDED LEARNING PROGRAMS

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The Government of Alberta estimates the province could experience a labour shortage of around 96,000* workers by 2023, and SAIT Polytechnic’s blended learning apprenticeship programs continue to lead the way in providing flexible, innovative training to close the trades gap. SAIT offers blended learning in five high-demand apprenticeship programs — plumber, carpenter, electrician, welder and a newly created program for automotive service technicians. “Blended learning is about flexibility. It’s designed for the many Albertans who want to advance their trades careers but can’t afford to leave their job for on-campus apprenticeship training,” said David Roberge, Dean, School of Manufacturing and Automation. Apprenticeships are three or four-year training periods, with about 1,500 job hours and six-to-eight weeks of classroom learning each year. Blended learning allows apprentices to complete a portion of their theory training online, during evenings and weekends, while continuing to work.

Interactive graphics and videos complement reading materials to make theory easier to understand and can be watched at the learner’s pace. Knowledgeable SAIT instructors are only a click or call away, while online practice questions help with exam preparation. “One of the main advantages I found was the ability to retake any test and review answers at any time,” said Seamus Bowkett, a blending-learning welding apprentice looking for a new career after 15 years in oil and gas HR management. “The digital nature of blended learning is a fundamental step in the future of our industries, which can only enhance the level of standards we have come to expect from Alberta’s tradespeople.” Benefits for apprentices, employers and the economy

While some lab work must still be completed on campus, the blended For learners from outside Calgary, it cuts down on travel and option can reduce classroom time by up to 15 weeks, depending on living expenses — while reducing the financial strain faced by all the trade over the period of the apprenticeship. apprentices, regardless of their hometown. “Blending learning enabled me to keep a full paycheque,” said plumbing apprentice Rob Milton. “Being a father of three, I do have a lot of expenses at home with the kids.” And while Milton’s salary is needed by his family, his services are needed in the field. By 2023, the government predicts a cumulative shortage of more than 3,400 welders, carpenters, plumbers, electricians and automotive service techs. How blended learning works “It’s the best of time-tested apprenticeship training blended with the benefits of technology,” Roberge said. “We’re seeing a high success rate among motivated apprentices.”

Scott MacPherson Dean School of Construction

Employers are also on board. “The blended learning program allows me to not lose my manpower for so much time. Time is valuable,” said John Swan, owner of Triple J Mechanical. Apprentices can also apply their learning to the job the very next day. Scott MacPherson, Dean, School of Construction states: “By providing apprenticeship training when, where — and how — it’s needed, SAIT is making it easier for people to achieve their goals, helping to prevent the projected labour shortage and fuelling our provincial economy,”. For more on apprenticeship blended learning, visit sait.ca *Alberta’s Occupational Demand and Supply Outlook: 2013-2023.

apprenticeship training when, where — and how — it’s needed, “BySAITproviding is making it easier for people to achieve their goals, helping to prevent the projected labour shortage and fuelling our provincial economy. ”

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By JudyLynn Archer

he theme of “Discover our past; find your future” that the Edmonton Construction Association has chosen for this first edition of their new magazine, ECA Breaking Ground, is certainly timely. The city has grown exponentially in past years and this trend isn’t likely to change any time soon. As Edmonton pursues a denser downtown and improved infrastructure, construction projects will continue keeping the industry busy. And yet looking forward, the pool of workers to staff these projects is shrinking. With 40 per cent of Canada’s skilled trades workforce expected to retire over the next decade, employers, especially in Alberta, are looking for new and creative ways to attract and retain the workforce they need now and in the future. That is precisely where Women Building Futures is positioning itself—as being a part of the solution for bringing more workers into the industry and providing much-needed recruitment, assessment, training, and retention support to the employers hiring them. Women Building Futures (WBF) is a social-purpose organization whose mandate is helping women achieve economic prosperity through employment in the construction trades. Our areas of expertise include: • Advocacy: Positioning construction as a career of choice for women; and positioning women as a viable source of skilled workers for Alberta’s construction sector. • Assessment: Helping women make informed decisions and ensuring they are ready, willing and able to enter a career in the trades. • Training: Preparing women for success through skills training, safety certification, Workplace Culture Awareness™, fitness and academic upgrading. • Job Placement and Retention: Providing women with job-search assistance and job-retention support to assist with securing and retaining apprenticeships and employment.

Together with industry and government, WBF has great impact both on the lives of the women we serve and the bottom-lines of the employers with whom we work: • Women secure a career in which they earn higher wages: The average increase in annual income, immediately upon completing a WBF program and becoming hired, is 127 per cent. • Expanded workforce: Industry gains access to one of Canada’s largest, local untapped workforce, thus increasing its capacity to build, operate and maintain projects. • Social return on investment: The average increase in annual income results in a full reduction of government subsidies and a significant increase in personal taxes.

Women Building Futures – Looking Back WBF started in 1998 with a focus on helping at-risk, unemployed women train for work in the trades. This training was done in a basement of a building on Jasper Avenue and was led by a team of passionate people who created the foundation of who we are today. 2008 marked the grand-opening of the WBF Suncor Energy Training Centre and the WBF Housing Centre in downtown Edmonton, Canada’s first trades-training facility for women. This was a turning point for the small organization; not only did the facility serve as a permanent home, it also enabled WBF to attract and train more women in construction. By 2013, the number of women WBF was engaging with broadened to include the underemployed and careerchangers, women with varied backgrounds from retail and service to military and law enforcement. The number of Aboriginal women engaging with WBF also grew by 70 per cent, from 2010 to 2013. This interest from women to enter careers in construction was timely, in that industry was also starting to look to WBF for ways of attracting more women to their workforce. A total of 170 employers were already hiring WBF graduates, and many were looking for other strategic ways to partner with WBF. Women Building Futures – Looking Forward Over the next five years, WBF’s goals are to increase the number of women entering construction apprenticeships by 300 per cent and to improve their apprenticeship-completion rates. Partnering with employers is a key enabler to this plan looking forward. To accomplish this, WBF is positioning itself as a workplace development partner for industry, offering services in recruitment, assessment, skill-building, and retention support to assist employers in attracting and employing the female workforce. Employers who partner with WBF position themselves as employers-of-choice to a large, local, untapped pool of female workers who are ready, willing and able to do the job. A key component of WBF’s proven track record is a rigorous assessment process that includes career investigation reports, budgeting, academics testing, drug and alcohol testing and fitness-to-work testing. This ensures that WBF women are well-prepared for the jobsite and employers are supported in their quest to reduce jobsite incidents and injuries, improve productivity and increase worker retention. In addition, WBF provides ongoing retention support through coaching, mentorship and assistance in completing apprenticeship in the shortest allowable time. ECA Breaking Ground • SPRING 2014 45

300%

Photos courtesy: Women Building Futures.

WBF graduate welder apprentice at work with foreman.

WBFâ&#x20AC;&#x2122;s goal to increase the number of women entering construction apprenticeships by 300 per cent over the next five years.

In the future, WBF will continue to grow its engagement with women and pursue more partnerships with industry to funnel the women into the workforce. While this is only part of the solution in terms of addressing the labour shortage in Alberta, with over 660,000 women between the ages of 24 and 44 in the province, WBF is confident that the female demographic will play an important role as a long-term solution for industry. For more information about Women Building Futures, please visit www.womenbuildingfutures.com.

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127%

The average increase in annual income, immediately upon completing a WBF program and becoming hired.

About the Author: As president and CEO of Women Building Futures, JudyLynn Archer is passionate about solving social issues in ways that benefit business. Every day she gets to do what she is most passionate about—bringing people and ideas together that make a difference, for good. Archer is a recipient of the Executive Women’s Network – Canada’s Top 100 Most Powerful Women Award. About Women Building Futures: Women Building Futures (WBF) is recognized as a leader in trades training for women. The success of the organization is due to its uncompromis-

660,000 The number of women between the ages of 24 and 44 in Alberta. WBF is confident that the female demographic will play an important role as a long-term solution for industry.

ing approach to meeting the needs of women and industry by recruiting the right people and providing them with the right training and support. WBF’s impact: • The average increase in income immediately upon completing a WBF program and becoming hired is 127 per cent; • Industry gains access to Alberta’s largest local untapped workforce thereby increasing its capacity to build, operate and maintain projects; • WBF’s focus on impact attracts and retains staff, clients, customers, volunteers, partners and investors. Over the next 10 years, Canada’s projected investment in oil and gas, mining, and utilities is $90 billion annually; in other words, close to a trillion dollars. During this same time period, hundreds of thousands of workers will retire from the industry. Alberta needs to attract and train every source of labour possible to ensure that there is a sufficient supply of skilled professionals when they’re needed. This is where WBF comes into play. Over the next five years, WBF will increase the number of women entering trades by 300 per cent and increase the rate of retention. V ECA Breaking Ground • SPRING 2014 47

Tomorrow’s future, today:

Young Builders Group ECA creates innovative group focused on fostering next generation of construction leaders By Melanie Franner

he Edmonton construction industry is here to stay—all the more reason to ensure that the next generation is up to the task of learn-

ing from the industry’s best while putting forth their own mark of distinction in the process. And thanks to a small core of enthusiastic and committed individuals, the Edmonton Construction Association (ECA) now offers a specialized committee dedicated to creating a unique environment geared to fostering and nurturing these very individuals. The ECA’s Young Builders Group (YBG) came to official fruition at the ECA’s Annual General Meeting and Luncheon, which was held on February 7th of this year. “I’m overwhelmed by the interest that has been generated for this group,” states Andrew Ross, chairman of the YBG and executive vice-president, Northern Alberta, Clark Builders. “I think people are eager to become part of this initiative. They like the mandate and they want to develop themselves and the industry.”

Edmonton Construction Association • SPRING 2014

That mandate is to promote the growth and development of young construction professionals through education, community activity and networking, with the goal of strengthening the construction industry in Edmonton for the next generation. During these formative stages, the YBG is being governed by a loyal and energetic committee wholly dedicated to making it a success. This working committee consists of a group of individuals who are willing to go and above beyond their “day” jobs to create a truly dynamic and supportive working group within the ECA. Interest has been so robust that the committee itself has been expanded to include 12 people. “Our inaugural event was held on March 27th,” explains Ross. “Before we knew it, we had 75 people signed up for the event. And that was just after it was announced.” The March 27th event adhered to the “educate, collaborate and elevate” motto of the YBG.

“We want to do a lot of educational seminars,” explains Barrie Latter, YBG committee representative and account executive for AON Construction Services Group. “We want to work together through networking groups in the ECA and throughout the wider Edmonton-area construction industry. We also want to promote and develop our young professionals into becoming the leaders of tomorrow.” Age Not a Factor Although the YBG is reportedly geared to young individuals, there is no age limit or specific type of individual being sought. “We had a lot of discussion about whom this group should include and what possible qualifications would be,” explains Shannon Fitzsimmons, YBG committee representative and project manager, Clark Builders. “In the end, we decided that age shouldn’t be a limiting factor. We are marketing it to individuals who are new to the industry or are still in the first-half of their career. We also wanted to target a good cross-section of the industry, not just the professionals. So our goal is to attract a good mix of people—everyone from management to subcontractors to trades people and people working in the field.” In fact, Fitzsimmons has already spoken to several people with whom she works. “I’m really excited about getting some of the individuals working in the field to attend the YBG events,” she says. “Everyone I have spoken to about it has been really excited about the idea and wants to join. I think we’re eventually going to see a lot more cross-pollination between field and office personnel.”

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Edmonton Construction Association • SPRING 2014

By focusing on those individuals still working within the first-half of their career, the YBG is targeting people who are still developing their skills and expertise. “I see from the work I do every day and the people I am involved with that there is a substantial knowledge and experience gap between those in the first-half of their career and those in their second-half,” states Greg Forsythe, YBG committee representative and surety underwriter for The Guarantee. “For me personally, I was looking at how I could bridge that gap and take my career to the next level. In order to do that, I knew that I needed to increase my participation in the industry as a whole and I think the YBG provides an ideal opportunity to do this.” Forsythe describes the YBG Committee as being an “interesting dynamic”. “There is a real mix of people and backgrounds,” he says. “And I think that this mix, along with the guidance from the chair and the ECA executives, will bode well for the success of the YBG. We’ve got a mandate to promote networking and education. The community aspect of our mandate reflects the spirit of the Edmonton construction community. Giving back to the community is the final piece that ties it all together.” Another element that the YBG will bring to the fore is mentoring. “One of the biggest things for me is mentorship,” explains Aaron Budnick, YBG committee representative and account executive for Mobile Commercial Insurance. “I’ve been really lucky and have had some great people take me under their wing. I have really benefitted from their experience and I think it’s important that other people

“In the end, we decided that age shouldn’t be a limiting factor. We are marketing it to individuals who are new to the industry or are still in the first-half of their career. We also wanted to target a good cross-section of the industry, not just the professionals,” states Shannon Fitzsimmons.

have the ability to take advantage of these types of experiences.” Looking Both Ways Of course, the success of the YBG relies, in large part, upon the shoulders of the inaugural YBG Committee. But it also extends out to the ECA and its member companies. “There is a lot of support for the YBG from the ECA,” states Budnick. “It’s something that everyone in the ECA is very passionate about, as are all the members of the ECA.” So impassioned is the ECA that special mention of the YBG was made several times throughout the AGM. “It wasn’t just us during the AGM,” notes Fitzsimmons. “During the event, everyone picked up on it and encouraged us. The whole idea is for the YBG to reach out to new members of the industry and engage with the knowledge of older generations. It’s a wonderful dynamic. Typically, people working in the construction industry are doing it because there is something about the industry that they love. Being involved in something like the YBG will strengthen the industry’s presence, while creating an environment [in which] to grow professionally.”

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All in a Year’s Work With the YBG launch already a huge success, committee members are looking ahead to focus on fulfilling the newly minted mandate of education, network and community. There are currently three potential events under discussion (the inaugural one held on March 27th satisfied the educational manECA Breaking Ground • SPRING 2014 51

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“One of the biggest things for me is mentorship,” explains Aaron Budnick. “I’ve been really lucky and have had some great people take me under their wing … I think it’s important that other people have the ability to take advantage of these types of experiences. date via a presentation from FML). Events in the works include a social/community golf tournament in July, an educational/ social development workshop in September and a social year-end wrap-up in December. All events will operate on a user-pay basis, with no goal to generate profit. In addition to organizing the minimum four industry events, YBG committee members have also committed to meeting regularly (within every four to six weeks) to work on fulfilling its mandate. “This is a great opportunity to have interaction between those people in the first-half of their careers and those in their second-half,” states Latter. “It will allow us to glean information from those more experienced while, at the same time, allowing the younger representatives to reciprocate by way of sharing a different perspective. It is a great way to guarantee the continued success of our industry.” And, in an industry that can boast 40,000+ strong, being able to learn from and sustain the depth of industry knowledge and expertise is key to ensuring that there is a bright and solid future ahead—not only for the future leaders currently involved in the YBG, but also for the many generations of future leaders still to come. V

Close-up view of the bridge replacement, showing the shared-use path.

Image courtesy: DIALOG.

From vision to reality Edmonton’s striking Walterdale Bridge begins to take shape By Jillian Mitchell

he grand eight-storey-high arches of Edmonton’s proposed Walterdale Bridge are perhaps its most salient feature. Touted as a signature gateway to downtown in the heart of Edmonton’s river valley, the northbound bridge with complementary sidewalk and shared-use path to the west and east, respectively, will

be open to the public in late 2015. For Jim Montgomery, principal in charge with DIALOG, the Walterdale Bridge project

is a definitive career highlight. “It’s one of the best projects that I’ve ever worked on—it’s awesome,” says Montgomery, who leads the project’s bridge design team. “It’s impressive. It’s going to be a signature structure that will be a point of pride for the city of Edmonton.” A departure from the usual girder bridge design, the proposed through-arch structure will extend a total of 230 metres (more than two football fields) across the North Saskatchewan River at 105th Street, several metres east of the existing Walterdale Bridge, with three northbound traffic lanes (and potential for a future fourth lane). Kinetic lighting will be installed on the bridge, and the surrounding area will be landscaped to add to the site’s appeal. 54

Edmonton Construction Association • SPRING 2014

Major design consultants on the project include ISL Engineering and Land Services, prime and roadways; DIALOG and Buckland & Taylor Ltd., bridge structures; and AL-Terra Engineering Ltd., roadways. As Montgomery explains, the design team was not directed to adhere to the existing bridge’s design or incorporate it into the final design, though elements of the historic structure will be incorporated into artwork and landscaping elements. “Basically, the old bridge has reached the end of its viable service life,” says Allan Bartman, senior project manager and general supervisor with the City of Edmonton’s Special Projects Section, who promptly cites the existing structure’s use of lead paint as one cause for its scheduled demolition in 2016. “We decided early in the process that we wanted to make a new signature bridge to replace it, and the new bridge will certainly be iconic for the city.” Construction on the $155-million bridge replacement project began in July 2013 with Acciona Pacer Joint Venture at the helm, a partnership comprised of Vancouverbased Acciona Infrastructure Canada Inc., part of the Spanish company Acciona, and Alberta-local contractor Pacer Corporation Group of Companies. Overall project completion has been slated for 2016. Kris Lima, an associate with DIALOG, reports that the project is on schedule and on budget, and that the contractor’s proposed erection scheme is currently being developed for regulatory approval. “The project is unique,” says Lima, who serves as construction project manager for the consulting team. “The reinforced concrete thrust blocks are founded on the bedrock 25 metres below the bridge deck, well-below the stream bed—so quite deep. And the foundations are large, roughly 500 cubic metres of concrete per thrust block.” Current construction involves bridge foundations, which must be completed over the next three to four months, when the first arch-rib structural steel segments arrive on site. These segments will then be connected to the thrust blocks. Subsequently, the remainder of the arch rib segments and hanger cables will be erected, being supported on the first few segments

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City of Edmonton Archives EA-10-1066. Photo courtesy: City of Edmonton Archives.

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A departure from the usual girder bridge design, the proposed through-arch structure will extend a total of 230 metres (more than two football fields) across the North Saskatchewan River at 105th Street, several metres east of the existing Walterdale Bridge, with three northbound traffic lanes (and potential for a future fourth lane).

Allan Bartman, senior project manager and general supervisor with the City of Edmonton’s Special Projects Section, poses inside the cofferdam.

and the thrust-blocks. The hanger cables will then transfer loads from the bridge deck and shared-use path to the arch ribs. Arch-rib erection is scheduled for fall of 2014, while the structure’s steel-and-concrete deck, which will be covered with a waterproof membrane and asphalt wearing surface, as well as the shared-use path, will follow in early 2015. The structure’s two steel-arch ribs—at 206 metres from river bank to bank, 43 metres high—will be constructed on an incline toward each other and connected together with steel struts. Structural steel components are being supplied by South Korea’s Daewoo International Corp.

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Construction of the bridge foundations was a project challenge, says Nathan Doupe, IMS manager for the Walterdale Bridge replacement project, as was the installation of four temporary cofferdams that allow work to occur below the elevation of the riverbed. As the Acciona Pacer Joint Venture representative confirms, cooperation and coordination between several different trades has been key to the progress made to date. “Our team has met the challenge while maintaining high standards of workplace safety and environmental stewardship,” Doupe says. “It is difficult to appreciate the work that has been completed to date because foundation work is largely out-of-sight. Looking forward, the structural steel erection work will begin this summer with a whole new set of challenges. It will be very exciting to finally build up from below ground and really start to see the progress.” V

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New trade definitions clarify scope of work in preparing bids By Lisa Fattori

he recently released Alberta Construction Trade Definitions offer a comprehensive single source to which contractors can refer when bidding for a tendered project. Researched and drafted by the Edmonton Construction Association (ECA), the document updates existing trade definitions and includes new technology-related entries, for a guide that is modern and relevant for today’s construction projects. Available for free online at edmca.com and albertaconstruction.net, the 2014 Alberta Construction Trade Definitions is accessible to all contractors across the country and will be updated annually to offer definitions that are current and universal from coast to coast. “Trade definitions have been around for 40 years, and have been updated periodically from time to time,” says Ric Francoeur, member of the ECA Trade Definitions Committee. “The revisions we’ve made are an update to the last definitions document that was previously revised in 2002. Today, there are new technologies, materials and standards in the construction industry, and these needed to be included. We have developed trade definitions into a single document that can be used by a contractor anywhere in Alberta or outside of the province. It creates a level playing field and lets contractors know what they should or should not include in their bids. What we would like to see is that everyone across Canada uses the same trade scopes.” Historically, the Alberta Construction Association (ACA) oversaw periodic updates to the construction industry’s trade definitions. The ACA also established The Alberta Bid Depository Limited in 1964, which was later replaced by the Alberta Construction Tendering System Limited (ACTS) in 1990. With the cancellation of ACTS a decade ago, updates to trade definitions also went by the wayside, and had only received minor changes up to that time. In July 2012, the ECA saw the need to revamp the trade definitions document, and established a committee to work on the project. After 18 months of consultations, including input from 11 trade associations, the 114-page document was rewritten and released January 13th, 2014. “We were hoping to get more input from all trade associations, as there are another eight or ten trades that could be included, that don’t have trade scopes,” says Roger Buksa, an ECA director and chairman of the Trade Definitions Committee. “As soon as we put the document out, we received emails requesting changes and the government responded with suggested changes to specific items. Contractors can suggest revisions to their trade scopes at any time, providing they submit the change they would like to see, the reason for the change and how it affects the other trade scopes. This is the construction industry’s document, so the industry should be the driver to maintain it.” 58

Edmonton Construction Association • SPRING 2014

Today, there are new technologies, materials and standards in the construction industry, and these needed to be included. We have developed trade definitions into a single document that can be used by a contractor anywhere in Alberta or outside of the province. It creates a level playing field and lets contractors know what they should or should not include in their bids.

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New to the Alberta Construction Trade Definitions is the inclusion of a section about Building Information Modeling (BIM). Use of this computer-aided design system has increased significantly in recent years and is a stage of construction that is included in many tendered projects. The definition outlines what trades should include and exclude in their quotations, if BIM assistance is required in the specification, but is not clearly outlined. The main requirement is for the contractor to provide the relevant information for the materials and equipment that they are providing—information that will assist in the development of a BIM model. Unless specified, contractors are not actually creating the BIM model; rather, they are providing the information for the scope of their work, which will then be inputted into the design. “BIM eliminates conflict before it arises,” Francoeur says. “Structural elements, windows, mechanical, plumbing, electrical, etc. are all planned out before the start of construction.” ECA Breaking Ground • SPRING 2014 59

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The biggest change in the construction industry is projects that require smartbuilding technologies. The revised trade definitions include two new trade sections that cover two levels of management—Building Management Systems (BMS) and Facility Management Systems (FMS). The BMS is the control system that operates the building’s environmental system (heating, cooling etc.). The FMS is the system that controls and monitors all the building’s systems, including the BMS, lighting, security, etc. With the advancement in technology today, these two scopes required a clear definition of what each has to provide to eliminate any overlap in scope and to provide a clear outline about where the BMS ends and the FMS begins. Today’s smart buildings, with sophisticated automated control systems, require contractors to follow a set criteria. The computer-based FMS controls and monitors a building’s mechanical and electrical equipment and systems, including but not limited to the heating, cooling, ventilation, lighting, emergency power systems, fire systems and security systems. The definition provides the inclusions and exclusions for which a FMS contractor is responsible to integrate all the building’s systems. With the advent of new flooring products, the document’s flooring sections have been expanded to include all flooring types, including resilient-floor covering, carpeting, hardwood and laminate floorings. “Even roof systems required updating,” Buksa says. “Because of a higher demand for green-roof systems, we have developed and included the Vegetated Roof Systems scope with the help of the Alberta Roofing Contractors’ Association.” Because Francoeur had helped draft the previous ACTS Trade Definitions, he was asked to consult on the new draft and became an important committee member who could bring a historical perspective to the project. For example, portions that had been deleted from the previous definitions document were reinstated in the new draft, so as not to adversely affect the scope of work for other trades involved in a project. Francoeur had already experienced the daunting task of fine-tuning trade definitions and knew

the repercussions of adding or omitting any particular details. “I knew they were reviewing the trade definitions and asked to see the first draft,” Francoeur says. “I knew some of the conflicts that could come up on the jobsite and offered my expertise. We got rid of all acronyms and rewrote the document in plain English, so that it would be easier to understand. We also eliminated references to defunct companies and old trade names, such as Dywidag, which is a rock anchor. It was important to remove these terms because they would be unfamiliar to new contractors and people entering the construction industry down the road.” The ECA’s renewed partnership with the ACA and the new COOLNet Alberta are indicative of the trend toward integration and co-operation within Alberta’s construction

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ECA Breaking Ground • SPRING 2014 61

Our Parents’ Home brings unique Jewish retirement community to Edmonton By Lisa Fattori

he only facility of its kind west of Winnipeg and east of Vancouver, Beit Horim (Our Parents’ Home) is a dedicated Jewish retirement community for seniors. Located at the corner of Jasper Avenue and 119th Street in downtown Edmonton, the building is situated right next door to Beth Shalom Synagogue. While the residence is open to people of all faiths, the facility offers Jewish cultural programs and a kosher kitchen. With the availability of these services at one location, seniors have access to several conveniences and a vibrant community—particularly beneficial for local residents who, as they age, want to remain in the neighbourhood.

Edmonton Construction Association • SPRING 2014

A key consideration in the design of the building was the inclusion of a kosher kitchen. Located on the main floor, the kitchen includes two separate food preparation areas, in order to ensure that meat and dairy remain separate.

“Our Parents’ Home is in a great central location and has all the hallmarks of what you want in a seniors’ facility,” says Len Dolgoy, president of Our Parents’ Homes Society. “The residence is close to shopping and medical facilities, and is right on the bus line. It’s in a traditional Jewish area, so people won’t have to relocate in order to have access to the facilities and services that they will ultimately need.” Our Parents’ Home is a $30-million project that includes a $6-million contribution from the Alberta government. A non-profit organization, Our Parents’ Home has been fundraising for over 12 years to finance the project. The 14-storey building consists of 80 one- and two-bedroom suites that occupy eight floors. Three storeys are reserved for 50 assistedliving suites, which include accommodations for people with dementia. The building will be managed by seniors’ facility management specialist Christenson Developments. A key consideration in the design of the building was the inclusion of a kosher kitchen. Located on the main floor, the kitchen includes two separate food preparation areas. Each kitchen has its own dishes, cutlery and dishwasher, to ensure that meat and dairy remain separate. The ground level also houses dining rooms, a lobby and retail space for three tenants. The top-floor amenity space includes a large lounge with fireplace, a TV room with space for a few computers, a fitness room and a multi-purpose room. There is also a 40-foot by 24-foot outdoor terrace with planters and seating areas, where residents can enjoy great views of the surrounding cityscape. “Originally the plan was for a 13-storey building, but we decided to put all amenities on one floor, which made the space more useable for social events,” says Stephen Burghardt, construction manager for Our Parents’ Home. “The second-floor fitness room and a multi-

“Originally the plan was for a 13-storey building, but we decided to put all amenities on one floor, which made the space more useable for social events,” says Stephen Burghardt. ECA Breaking Ground • SPRING 2014 63

Residents will have a home that is elegant and comfortable, with amenity space and social programs all on-site for added convenience. purpose room were moved to the 14th floor. Now, the second floor has 6,000 square feet of vacant space, which will be leased out for administrative offices.” Formerly the site of two parsonages, land for the project was purchased from Beth Shalom Synagogue. The two structures had been gone for some time, with only gravel and top soil remaining. In recent years, the vacant lot was used as a makeshift parking lot. Construction of Our Parents’ Home began in November 2012 and is expected to be complete by the end of March 2015. Training programs and furniture set-up will require additional time, moving the expected date for occupation to the spring of 2015. The mechanical system for the building includes a cooling tower and energy-efficient boilers. A heat pump, energy-sharing system will provide each suite with its own heat pump and temperature controls. Economy of space required duct work to run in ceilings, which are located at minimum depths to help lower the overall cost of the building. “We wanted to minimize the height of the building, so we worked very closely with the architect to make certain that ceilings and bulkheads in the hallways could accommodate the mechanical requirements,” says Michael Ream, senior project manager for Arrow Engineering Inc. “We wanted to

minimize any impact on the architecture and interior design. The ceiling space is very tight, so the biggest challenge is making sure that everything fits.” The building will be clad in a combination of stucco and masonry, and features ample glazing for plenty of natural light. Interior finishes include porcelain tile flooring in the foyer. Unique ceiling structures add architectural interest and include dropped ceilings with pot lights in the dining rooms. Residents will have a home that is elegant and comfortable, with amenity space and social programs all on-site for added convenience. With the facility’s close proximity to Beth Shalom Synagogue, Our Parents’ Home residents also have additional support, cultural events and a wider community right next door. “The residence will accommodate both Jewish and nonJewish seniors, and we hope that everyone will feel welcome in our congregation,” says Rabbi Kliel Rose of Beth Shalom Synagogue. “I’ve seen this model in other cities, including Winnipeg, where seniors’ residences were built on the campuses of synagogues. People are very excited and I’ve talked to a number of Jewish seniors who recognize that this is a huge asset for the community.” V

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Future shock:

When good is no longer good enough By Michael D. Mangum, FMI Center for Strategic Leadership

t is a safe bet that no one in the construction industry who experienced the decade of 2004–2013 would characterize it as stable or consistent. To the contrary, an apt one-word description might be “schizophrenic”: five years of explosive growth followed immediately by a gut-wrenchingly steep downturn. Its effects still linger across the industry. Hundreds of thousands of workers have left the industry, unlikely to return. The carnage of companies that closed their doors or sold-out is scattered across all industry sectors. Average industry profit margins continue to be squeezed and are well-below those from pre-2007. Consider former White House chief of staff Rahm Emanuel’s instant classic of a quote: “You never want a serious crisis to go to waste. And what I mean by that, it’s an opportunity to do things that you think you could not do before.” Emanuel knew that in times of crisis, people are looking for answers with an intensity that dissipates (or perhaps disappears) during periods of great success. The Italian poet Horace well-understood this 2,000 years earlier, when he coined the famous phrase carpe diem—or, seize the day. Such a day is indeed at hand! Odds are that if you are reading this article, you have survived this crisis. Yet some thrived in the midst of the chaos while others still hang on by a thread. Others were not so fortunate. Were these widely divergent outcomes more the result of good fortune or good preparation? Can the lessons learned from this turbulent period inform today’s leaders of potential paths that mitigate the downside risk of recurrence? Most importantly, can we take steps today that swing a business from crisis survivor to crisis thriver? Let us begin with the premise that many of the tools leaders need to make that survivorthriver shift are not in today’s toolkit. This era of high volatility, unprecedented complexity, and constantly accelerating rate of change demands a retooling. By now, many are familiar with the Jim Collins-popularized notion that the good is the enemy of the great. If this is true, then we should be on search-and-destroy missions to root out pockets of goodness in our organization. In the following pages, we will explore how you can effectively lead for the future, and what tools along the way will help you capitalize on opportunities that may not be obvious at first glance. Leading Indicators vs. Lagging Indicators No one in their right mind pulls their car out of the driveway after dark without turning on the headlights. Even on routes we have driven hundreds of times, all motorists instinctively understand the importance of illuminating potential perils that lie in our path. Moreover, with increased velocity of movement, the need for some type of early warning system becomes even more imperative. Yet in the business context, we rarely focus on systems and measurements that give notice to a company of changes ahead. Income statements and balance sheets mostly tell us where

Edmonton Construction Association • SPRING 2014

we have been and not where we are going. Cost-to-complete reports are little better at warning us of an approaching disaster. We recently spoke with a construction executive who told us that he received phone calls on the same day from two different clients that resulted in 75 per cent of his backlog disappearing. Would it have been useful to have a notion 60 or 90 days sooner that this was a distinct possibility in light of market conditions that existed at that time? You bet! Were there opportunities in the preceding weeks and months when he could have detected what was barreling down the track? Again, an emphatic yes. The risk in this particular instance closely correlated to certain commodity price fluctuations and the interrelationship between the spot price of product “A” versus product “B”. A subsequent review of commodity price charts showed a trend developed three to four months prior to the decision to terminate the contracts. Similarly, the CEO of a major engineering company shared with us that his firm had been in search of an external metric to assist in benchmarking team performance. After much study and analysis—naturally, all are engineers—they decided to utilize total U.S. housing starts and total construction spending as the two most salient measures. How did this serve the business in 2006–2009, when U.S. housing starts dropped by 1.25 million units? Similarly, what of construction spending as it fell by over $150 billion in the period from 2008–2010? Were there different metrics that could have predicted the roughly 75 per cent drop in the housing sector? Alternatively, are there metrics that would have given a clearer warning? What would it have taken to set off alarms inside the boardroom before the tsunami hit? In both instances, these executives based today’s business primarily on benchmarks derived from lagging indicators. According to Merriam-Webster, the definition of a lagging indicator is

ECA Breaking Ground • SPRING 2014 67

a measure that more often than not maintains an existent trend for some time after an opposite trend emerges. Reliance upon indicators of this nature link a company’s future to historical outcomes, thus lessening opportunities for rapid adjustment to changing circumstances. Conversely, leading indicators, while typically more difficult to track, illuminate factors that we can positively influence for superior results. To better illustrate the concept of leading versus lagging indicators, let us examine one of the top concerns in today’s construction industry: safety. By far, the most widely Steps to Utilize Lead Indicators: used safety metrics are the Occupational Safety and Health Administration Total • Review your current metrics and key perforRecordable Injury Rate (“TRIR”) and the Experience Modification Rate (“EMR”). mance indicators; assess the degree to which Both are clearly lagging indicators and of little value in reducing or eliminating each is predictive of future success (vs. a statefuture injuries. ment of success past). However, a new trend is emerging in safety best practices to embrace leading • To the extent that you detect gaps in your early indicators. A recent Construction Industry Institute report defines such indicators warning radar, identify alternative indicators. as “measures of attitudes, behaviours, practices, or conditions that influence con• Assess for metrics to track lead indicators and struction safety performance.” Examples of leading indicators for safety include procedures to implement measurements. near-miss analysis, worker safe behaviour observation, safety audit tracking/anal• Determine the specific scoreboard that will disysis, and pre-activity project hazard analysis process/compliance measurement. play leading measurements and how you will Each are indeed more challenging to measure, yet strongly correlate to the likelicommunicate daily/weekly/monthly scores. hood of serious and costly future accidents. Adaptability vs. Efficiency We are just crazy enough to think that running marathons is fun. It takes a great deal of time and many miles of running to train the body how to be efficient enough to make the 42 kilometres from start to finish. Almost as important is knowing the race course: flat or hilly; gravel or paved; shaded or sun-drenched, etc. Runners thoroughly break-in their

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shoes, drink the same liquids to hydrate, eat the same foods at roughly the same time pre-race—you get the point. We control as much as possible in order to be • Generate a list of the 10 factors with the greatest as efficient as possible. Adaptability falls somewhere between secondary and potential to cause a major disruption and/or adirrelevant in the training pecking order. verse impact to your organization. Yet every world champion marathoner knows that it is his or her ability to • On a simple one-to-five scale, assess the degree to adapt to ever-changing road conditions that separates the good from the truly which your team has fully developed and clearly great. The body is a fickle thing; one minute all is well and the next, you are communicated contingency plans. ready to step to the curb, overcome by fatigue. Accurately reading those often • Based on your analysis of the three areas of greatconflicting signals and discerning those true from false requires a clear mind est risk—the gap between potential consequence and riveted attention. Failure to adapt appropriately can ruin a potentially great and degree of preparedness—design appropriate day. contingency plans. Looking back to pre-crash 2008 and knowing what ultimately transpired, would you prefer to invest in a company that was particularly adaptable or particularly efficient? Naturally, a shrewd investor would look for both characteristics but in turbulent times, adaptability is the ultimate trump card. Adaptability is different from reacting on-the-fly. Whereas reactionary is after-the-fact, adaptability takes into account the power to detect and respond to change, no matter how surprising or inconvenient. This is important because if you see change coming, yet sit on the “fix” until it is too late, obviously we do not model adaptability. Blockbuster provides a great example to this end. As Netflix and Red Box started their climb to extreme movie-rental disruption in 1999 and 2003, respectively, Blockbuster watched and denied that this change was material in nature. This blunder proved fatal, as Blockbuster ultimately filed for bankruptcy in 2010. In Blockbuster’s case, increasing efficiency would not have been nearly as important as immediately adapting to the rapidly changing business environment dictated by its new competitors.

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Consider that engineering and construction companies spend millions of dollars each year measuring and enhancing productivity. Rarely are we around industry leaders where productivity is not mentioned prominently. Conversely, we can count on one hand the number of times we have participated in discussions concerning their firms’ ability to adapt to changing conditions—arguably far more critical to their future success. Learning vs. Knowledge The old news is that we live in a knowledge society. Yet we find it ironic that never before has knowledge been so useless. Consider that the current estimate of the half-life of medical knowledge is between five to seven years. Moreover, in a recent report the National Academy of Engineering estimates that the half-life of an engineering education Learning: Pushing New Limits is between two to four years. As leaders, we run the risk of becoming functionally • Make a one-hour appointment with yourself to irrelevant, absent a commitment to lifetime learning. conduct a research study on a topic of personal A superior approach would be to acknowledge this condition and take proacinterest. tive steps to remain connected to emerging trends and research-related advances. • List three questions concerning this topic that Most of us are familiar with popular search engines like Google and Bing. Few are if understood more deeply, would potentially familiar with the hundreds of content-specific alternatives like LazyLibrary (to lotransform your level of enthusiasm and/or excate books on a specific topic) and Yudu (to search over one million current publicapertise. tions per month). In a learning society, power is balanced between what we know • Conduct the research study in a manner of your choosing, noting your findings as you enand knowing where to find (and learn) what we do not know. counter new and interesting facts. Yet this environment demands that leaders not only know the vital information; we must also wisely apply it to a given situation. This represents a far more nuanced challenge made even more challenging by the risk of data overload. Much has been written about the difference between raw data, which is in an overabundant supply, and actionable intelligence. Former Supreme Court Justice Oliver Wendell Holmes, Sr. recog-

Tell-tale signs of a positive outlook By Melanie Franner

he economic outlook for Alberta is strong, promising a healthy performance this year through to 2015 and beyond. The province’s real GDP is anticipated to increase by 3.1 per cent in 2014 and three per cent in 2015, according to the Canada Mortgage and Housing Corporation (CMHC) Housing Market Outlook, First Quarter 2014 report. The data points to slowed economic activity in 2013 due to flooding that occurred in the southern area of the province last year, but suggests that expenditures on flood remediation will have a positive effect on the economy this year and even into 2015. Plus, a predicted faster-growing economy for the U.S. is anticipated to help increase Alberta’s exports (primarily energy-based). Other positive signs include continued energy demand (which will drive investment in the oilsands), rapid population growth and rising incomes—all of which will help support higher spending on goods and services. Alberta will join British Columbia and Quebec as the only provinces projected to experience an increase in housing starts in 2014. Higher growth in existing home sales is also slated to take place this year, with Alberta numbers expected to grow at a pace closer to the national average in 2015.

Edmonton Construction Association • SPRING 2014

Described as the “Comeback Kid” in the October 2013 TD Economics Canadian Regional Housing Market Outlook report, the province of Alberta is identified as having among the healthiest housing markets in Canada: “The sharp decline in existing home prices and sales in the 2007–‘09 period appeared to erase the significant overvaluation that had been built up in the decade prior. Markets in Calgary and Edmonton were among the least affordable in 2007 and are now enjoying better affordability than average.” With regard to the number of homes under construction, TD Economics projects price gains of three per cent to four per cent over the 2014–‘15 period. Housing starts are forecasted to reach 15,500 for Edmonton in 2015, more than the 13,000 forecasted for Calgary. Full-speed Ahead In a speech given last year at the Joe Thompson Award Luncheon, Brad Ferguson, president and CEO of Edmonton Economic Development, spoke to the continuing need to innovate. True, the economic outlook for the next couple of years looks promising, but the city will not be one to sit on its laurels—at least according to Ferguson.

nized the data dilemma over a century ago: “I wouldn’t give a fig for the simplicity on this side of complexity; I would give my right arm for the simplicity on the far side of complexity.” Our mission as learning leaders is to find the simplicity that lies beyond, sharing its wisdom with our teammates. To achieve this end there are no shortcuts, only deep, reflective thought. Further, as leaders constantly immersed in the chaos of urgent matters, how can we bring this gift to our respective teams? It is impossible to do so. Great leaders must periodically detach from current affairs for the sake of improving the state of future current affairs. If we fail to do so, we fail our organization. System vs. Goals Thinking back on our marathoning experiences, one quickly learns that multiple goals are essential. Say you decided on a singular goal of running your fastest time ever, called a “PR” in the trade, or personal record. Yet you arrive on race day to find it unseasonably warm, humid, and quite sunny. The chance for a PR is gone before taking the first step. After perhaps 120 to 150 hours of training for that moment, do you shuffle back home in disgust? Hopefully you anticipated the possibility of circumstances arising that were beyond your control. Otherwise all the sweat, commitment and preparation of the past months goes up in flames, rendering that singular focus of a PR relatively useless. Scott Adams, creator of the Dilbert comic strip, addressed this very predicament in a recent Wall Street Journal article. His view is that systems are much better than goals to avoid the continual “cycle of permanent presuccess failure.” Dare he say a discouraging word about the importance of setting goals? Indeed, he goes on to slaughter the sacred cow saying, “To put it bluntly, goals are for losers.” Wait just a minute, you say. All successful people are great at setting goals. Perhaps, but what about the University of Scranton research that suggests just eight per cent of people achieve

“Folks, we are sitting on a golden opportunity,” he stated. “What we have the world wants … for now. What we have is secure for the next five to 10 years. What we have creates a solid foundation for risk-taking … and we need to take risks and make investments in order to play on the next curve.” Ferguson went on to suggest five parts of a winning strategy, which he described as follows: • Need to diversify revenue streams by geography—and start building major international companies focused on cold-climate construction across the circumpolar north. • Need to invest in technologies that will disrupt industries—and like the oilsands developers are doing, collaborate around challenges and open-source potential solutions. • Need to start attracting people—but shift the focus from labour and back to the attraction of the best and brightest minds who will help transform industries. • Need to open up the access point and market Edmonton as the leading city, the Gateway to the North, and not just focus on cold-climate construction, but also cold-climate technologies. • Need to develop a missionary sense of purpose in order to have every

engineer available want to come work in Edmonton … because the city is in a competition for talent. Edmonton needs to turn its businesses into a force for change and a force for good. That gives the next generation a sense of purpose. Re-defining the Future There is little doubt that Edmonton (and the province of Alberta) is currently enjoying strong economic growth. It would seem that the rough years are in the past—for now—and that the way forward is one being backed by leaders who share a long-term vision for continued growth and prosperity. According to the Office of the Chief Economist for the City of Edmonton, consumer expenditures, real GDP $2002 millions and housing starts are among the city’s key economic indicators. Looking forward from 2015 through to 2025, projections in consumer expenditures show a growth of between 4.8 per cent to 3.3 per cent; real GDP $2002 millions show a growth that will hover around 2.5 per cent over this period; and housing starts show a growth of between 1.5 per cent to 0.7 per cent—all of which factors point to a positive outlook that promises solid economic performance going forward. V

ECA Breaking Ground • SPRING 2014 71

their New Year’s goals? Is there something beyond the mere identification of noble, uplifting targets that predicts success versus failure? Systems: Sustaining Forward Momentum Adams’ penetrating and politically incorrect perspective comes from the • Select one strategic plan for review—organizational or persearch for his first job. A CEO seated next to him on a plane shared this sonal. nugget of wisdom that stuck with Adams. “He said that every time he got • Assess the degree to which systems exist to support the a new job, he immediately started looking for a better one. For him, jobaccomplishment of the targeted goals/objectives. seeking was not something one did when necessary. It was a continuing • Select the top goal to outline a system—the actions that process [emphasis added].” Instead of the goal of finding a job, he felt best you will DO and systems to put in place (how you will served by having a system to continually look for better job opportunities. continue to succeed beyond the goal). In Adams’ example, the goal was subsumed by the system. As leaders, consider how a systemized process of always being on the lookout for better opportunities serves us well. Such a mindset continually reinforces the notion of incremental improvement and sustained growth. It is also valid to assert that a system, when faithfully followed, usually turns into a habit—and in this instance, a particularly good one. Eric Haas, founder and CEO of ThinkTQ, Inc., built an entire business around the notion that goals, alone, are for losers indeed. ThinkTQ offers to its clients a rigorously systematic approach to the accomplishment of objectives. Haas figured out that it was not the goal-setters—the people seeking to raise their personal bar—that were the losers. No, it is just that their likelihood of success was ridiculously low, absent a system to support their best intentions. Rapidly changing circumstances allow a given goal to come and go with ease if there is an underlying system. When FMI works with our clients, we typically go through an extensive process that identifies the big goals (or objectives) a company seeks to achieve. Beyond that, we work to think through and establish the actions necessary to achieve those goals. When rephrased in the context of this article, we mutually identify the necessary systems to achieve a big goal that at first seem overly challenging.

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Perhaps you are familiar with the notion of a Big Hairy Audacious Goal, or “BHAG.” James Collins and Jerry Porras first coined this phrase in their 1994 book entitled Built to Last: Successful Habits of Visionary Companies. We propose that a team can only achieve a BHAG after establishing the necessary actions and systems to provide feedback on progress made to date. Further, midcourse corrections in pursuit of a BHAG are most efficiently made when informed by the accurate feedback derived from supporting systems. It bears witness to the fact that the combination of a powerful system, coupled with a stretch goal, truly can transform an entire business (or leader) for the better. Conclusion There is no “silver bullet” or secret formula for leadership excellence. It is not the case today nor will it be in the future. Some have equated leadership more to an art than a science. Whereas great artists never follow a set script for generating a riveting novel or impressionistic masterpiece, leaders, too, must look for inspiration and guidance from multiple sources. Moving into the future, tapping multiple sources for guidance, as well as the ability to synthesize this information to track trends and opportunities, will be what mitigates the future shock. The phrase, “What got you here won’t get you there” is all too familiar. Yet many still rely on the same practices until it is too late to adapt. Leading for the future demands a leader who thinks strategically about their business. He or she relies upon a variety of diverse tools, many of which are discussed in this article. While it may seem overwhelming at times to bring all of these aspects together, leveraging just one of these can produce positive, sustainable momentum. We are certain that the future holds many changes for our industry, and utilizing these tools to impart continued agility for your business may prove to be the difference in transforming today’s good into the great of tomorrow.

ECA Breaking Ground • SPRING 2014 73

About the Author: As a senior consultant with FMI’s Center for Strategic Leadership, Michael Mangum brings his 35+ years of experience in the construction industry to bear on the challenges confronting today’s leaders. He is particularly passionate about helping drive organizational change through strategic thought and personal transformation. Mangum is a lifelong construction guy, having been born into a family construction business in Raleigh, North Carolina. Sunday afternoons were spent touring job-

sites and playing on big tractors. Summers meant working at asphalt plants, laying pipe, and finishing concrete. He continued this industry involvement post-college, assuming various leadership roles, including president and CEO. Engineering News-Record named Mangum one of its 21st-century leaders of the transportation industry. Still other business interests exposed him to related industries like commercial and residential development, midstream oil and gas, mobile heavy equipment telematics, and golf course design/construction/management. Mangum earned a civil engineering (construction) degree from North Carolina State University, continuing with post-

graduate studies at the University of North Carolina – Chapel Hill. He has lectured in the graduate schools at both UNC and Northwestern University and is a 20-plusyear member of the Young Presidents Organization (“YPO”). As such, Mangum has been fortunate to count some of the most outstanding business leaders in the world as his teachers. Michael Mangum FMI Corporation 5171 Glenwood Avenue, Suite 200 Raleigh, NC 27612 Tel: 919.785.9219 • Fax: 919.785.9320 Email: mmangum@fminet.com Website: www.fminet.com V

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It’s a digital world

Transition from paper to digital tendering offers enhanced efficiency, integrated access for all parties By Jillian Mitchell

ordon MacPherson began working for the Edmonton Construction Association (ECA) in 1980—a time when typewriters ruled the roost; in person, by phone or by telex was the only way to immediately reach someone; and the postal service was used as the primary form of mass communication. By the time the former ECA vice-president retired in 2005, the digital revolution was in full swing at the ECA, and much had changed— for the better. ECA Breaking Ground • SPRING 2014 75

Paper was king—and queen—during MacPherson’s early days with the association.

Day-to-day agenda generally involved a great deal of paper-driven tasks, whether drafting memos, letters and bulletins on the typewriter (and later, with word processor); couriering items out to members through the postal service; or managing paper documents in the physical planroom.

Edmonton Construction Association • SPRING 2014

“The transition happened in a relatively short period of time,” MacPherson reflects. “When you look at the construction association being around since 1931, from 1931 up until the mid-‘80s, that’s 55 years with paper, and then from the mid-‘80s to the ‘90s you move from paper to electronic. That’s a very short period of time, really.” Paper was king—and queen—during MacPherson’s early days with the association. As he recalls, the day-to-day agenda generally involved a great deal of paper-driven tasks, whether drafting memos, letters and bulletins on the typewriter (and later, with word processor); couriering items out to members through the postal service; or managing paper documents in the physical planroom. However oldfashioned this system may seem in comparison to today’s digital age, there were benefits, he says, particularly with regard to relationships with members. In the days of paper, members would regularly visit the association to review the documents and develop their bids, which were later submitted in person to the respective closing locations. But by the mid-’90s, the beginning of what would soon be dubbed the “paperless society” had begun, and member visits slowly became less frequent as information was now available online. By the early-‘90s, the ECA office was fully furnished with computers, and this development brought about a new set of daily tasks— regularly checking email inboxes, sending weekly emailed updates to members, and backing up hard drives, to name a few—but perhaps most poignant, project documents were now becoming accessible online thanks to the Alberta construction sector’s highly innovative Bulletin Board System (BBS). Though there was some resistance to this digital system, the construction association was open to it and continually remained abreast of industry changes. “It’s just a natural progression,” MacPherson says of the movement to digital. “It’s just been an evolution. In all the 25 years I was there, it was a case of rapid evolution. We were heavily dependent on those leaders in the industry who were more technically advanced.” The forward-thinking retiree cites many benefits to the electronic document system. “Obviously the electronic system is far more

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“When I first started here 10 years ago … we used to have 150 people in here per day,” Debbie Barker, ECA planroom manager, says.

efficient and economical. The contractors were basically starting to realize that electronic was the way to go. The problem was, we lacked a lot of the technology and the tools at that time. But it evolved and now they’re pretty darn sophisticated. The construction association, to my knowledge, has come out on top.” Debbie Barker, ECA planroom manager, can attest to the effect of the digital age. For

over 10 years, she has worked in the ECA offices, managing all planroom information both paper and electronic. “When I first started here 10 years ago, maybe 50 per cent of our projects were online and all were in the physical planroom,” she says. “Now we’re seeing 30 per cent of projects in the physical planroom and 100 per cent online. And we used to have 150 people in here per day, now we have two.

So, it’s changed a lot in the last 10 years, and it’s a much different atmosphere here.” Today, many ECA members prefer to do “everything online,” she says, though a few members, particularly the elder demographic, do stop by the office to view paper documents. However, Barker estimates that in the next 10 years, the ECA will no longer have visitors in the physical planroom.

“Now, we maybe have two visitors a day. In the electronic planroom, we have hundreds,” Barker says. 78

Edmonton Construction Association • SPRING 2014

Most recently, the ECA rejoined the rest of the province on COOLNet (Construction Opportunities On-Line Network), a centralized website designed specifically for construction document management with member-access to tender information, plans, specifications and addenda. “The number of participants in the physical planroom has diminished greatly,” she confirms. “We maybe have two visitors a day. In the electronic planroom, we have hundreds. So now, we have a lot of networking events to keep the relationship going.” The transition from paper to digital documents has greatly accelerated in the last few years, however. In the early 2000s, for example, 100 per cent of the all association planroom plans and specs were scanned. In 2011, most owners and architects collectively transitioned from paper documents to digital documents. Today, the conversion is mostly complete and the amount of scanning done is five per cent or less of all the content on the sites. “The days of paper and digitizers are numbered,” says Dave Robertson, president of Infinite Source, the service provider for COOLNet Alberta. “People who want it can still access paper, but from the document distribution perspective, it’s almost 100 per cent electronic right now.” The reasoning for this evolution? Time and efficiency offered by going digital, he says, as well as the perks of integrated access for all parties. And who can forget, the general culture shift. As Robertson adds, new entrants into the industry are expecting to do things online and with computers; they’re culturally accustomed to it. Additionally, the support systems around digital information, such as software for electronic takeoffs, are much stronger today than they were five or 10 years ago. As these supports come into play, Roberston believes that people will no

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By the early-‘90s, the ECA office was fully furnished with computers, and this development brought about a new set of daily tasks—regularly checking email inboxes, sending weekly emailed updates to members, and backing up hard drives. 14000150 - Edmonton Construction Ad March 2014.qxp_Layout 1 2014-03-27 10:41 AM Page 1

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Edmonton Construction Association • SPRING 2014

longer opt for paper; they will actually want the digital files. “Where companies were once focused on storing paper documents, now they’re scanning and moving them to digital,” he says. “In terms of online document storage, Infinite Source maintains a high level of redundancy and backup for the associations with which we work. In a total of 16 years, our company has never lost a document yet.” Most recently, the ECA rejoined the rest of the province on COOLNet (Construction Opportunities On-Line Network), a centralized website designed specifically for construction document management with memberaccess to tender information, plans, specifications and addenda. Hosted by Infinite Source, the platform allows ECA members provincial-wide access to project opportunities. And with COOLNet On Demand, members now have access to additional online construction administration tools and can also manage projects by invitation only. Where plans and documents have been online for the last 16 years, online bid submission is new to the provincial construction sector. Market-tested in British Columbia, Infinite Source’s new e-bidding system is poised to hit the Albertan market. To date, Infinite Source has closed in excess of 5,000 online bids, virtually without incident through the new e-bidding system, which brings with it many benefits. This system, says Robertson, is the way of the future. “The first bid received online, through the association world, was only a couple of years ago,” says Robertson. “Since then, there have been a number of municipalities, public agencies and private organiza-

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tions transitioning to receiving all of their bid submissions online, digitally, rather than paper form. It reduces the risk of errors or omissions that result in noncompliant submissions, and provides bidders with more time, as they not chasing across town to submit a paper version.” To that, both Barker and MacPherson concur. “We know that e-bidding is the way of the future; however, Alberta has not jumped on board as of yet,” says Barker. “Once tendering authorities realize that it is a trusted tool to help in the tendering process, it will spread like a wild fire. There will be no questioning if all bidders are compliant and have read all addenda issued. Like Dave Robertson states, there will be no more running around.” As MacPherson concludes, “E-bidding would be a natural progression in the evolution of tendering, bidding and closing projects, just as paper to digital. It’s the way of the future. I would recommend that associations continue to promote closings through the association’s electronic planrooms on behalf of owners.” V

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Emerging

risk

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o be successful as a contractor, you must take risks. It’s the nature of the business—always has been and always will be, though the kinds of risks and the ways they are handled change over time. Industries with other business models look at ours and think we are crazy. “So, you tell somebody a price before you actually do the work. If you can’t get it done for that price, for whatever reason, you lose money. And you’re committing to it all in a contract?” Well, when you put it like that, it does sound pretty crazy. But here’s the thing: the construction industry is made up of people who manage risk every day. And those who are good at it do very, very well. Risks can’t be avoided. The key to expecting and handling potential risks is to be educated about what they are. Not only is knowledge power; knowledge is also profit. Risks that you are unaware of expose your balance sheet to loss. 82

Edmonton Construction Association • SPRING 2014

By Don C. Barr, Principal, Lloyd Sadd Insurance Brokers Ltd.

The Evolution of Risk Management Our predecessors in the industry were a lot more cavalier about the risks inherent in the business. Some of those risks were known, but most were not, and deals were often done on a handshake. Today’s contractors are more risk averse. The most successful companies understand and manage the risks they face on a daily basis. Deals are now done through carefully reviewed contracts, and contractors who are aware of what they are signing can put different measures in place to reduce their exposure to loss. Risk transfer, risk mitigation, risk acceptance and risk avoidance are just a few examples of these measures. Risk transfer means passing exposure onto someone else, either by paying a premium to an insurance company or through contract terms. Risk mitigation is being aware of a risk and putting measures in place to reduce or eliminate its severity or frequency. Risk acceptance means that you know the risk and are willing to take it on. The reward is typically worth it. Mitigation tactics can be used in conjunction. Risk avoidance is fairly self-explanatory: you avoid a risk altogether by not doing whatever it is that exposes you to that risk. Of course, that’s not always a viable option in today’s world if you are looking to do work and make money.

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Being aware of what puts your business at risk allows you to prosper, helps you keep your employees safer, and ultimately lets you sleep better at night. Tomorrow’s contractor will have to be cognizant of many emerging risks in the coming years. As our industry deals with the constant pressure to do things “better, faster, cheaper,” the following types of risk, already present, will be of increasing concern: - Personal risk: Your company’s directors and officers are exposed to personal risk every day. Certain issues, such as Bill C-45 and employment practices, can pierce the corporate veil and directly affect the individuals in your organization. What other potential liability do your key people face? - Accounts receivable, trade credit, and creditor protection: How are you protecting your business from exposure to large receivables from companies out of your control? - Cyber exposures: What measures are in place

to avoid computer viruses that can destroy data, damage hardware, cripple systems, and disrupt your business’s operations? What about data breaches from lost or stolen computers? - Technology: Cloud operations, building materials, and other new and emerging technologies will make currently profitable approaches obsolete in the near future. How is your company preparing? Do you have the right people in place? - Green building strategies: On sites that are looking to establish some type of green certification, what are your exposures and responsibilities as a contractor? - Pollution: With environmental concerns under increasing scrutiny, what are the ramifications of pollution, for both your corporation and the individuals within it?

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- Business continuity: Catastrophic losses are becoming more and more prevalent in today’s environment. Is your organization ready for one? - Product procurement: If your key supplier on a time-sensitive job goes bankrupt, do you have a strategy for handling it? - Pre-fab/modularization: It’s the direction of the future—modelling and planning have allowed for new and innovative ways to build. Is your organization ready to ride this wave? - Scope creep: Technology and innovation are not only changing the way we build, but also allowing those with less experience to be able to do the things you do. As emerging companies grow even if the pie doesn’t get bigger, how will you handle the increased competition? - Talent retention: With baby boomers preparing to retire and young talent so difficult to cultivate in a hyperactive economy, attracting and retaining key people is one of the largest risks that all organizations face looking forward. What is your company doing to build leaders and retain talent? - Mergers and acquisitions: The world of purchases, sales, and mergers is rife with risk. From past liabilities to unknown exposures, how can you protect yourself in anything from a small transac-

tion all the way up to a large merger or acquisition? - Professional liability: Do you do design-build work? - Joint-venture projects: Larger projects are going the way of P3s and JVs. What are you exposing your business to when you enter in to these? Partnering for Knowledge and Profit That’s a pretty wide array of risks, and guarding against some of them means going well beyond conventional insurance risk transfer. So how can today’s contractors protect themselves in tomorrow’s environment? The short answer: knowledge and partnerships. The ostrich approach is no longer an acceptable way to deal with risk. Being aware of what puts your business at risk allows you to prosper, helps you keep your employees safer, and ultimately lets you sleep better at night. Given the complexity of the present and future risk landscape, the best way to do all that is with a partner who knows the lay of the land. That partner should be someone who can make you aware of the risks you face, answer the questions posed above, and help you mitigate those exposures. Insurance can no longer be viewed as a commodity. Your insurance partner is your outsourced risk manager and a valuable contributor to your company’s success. V

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The

endangered species Can a family business survive past the founder? By Gordon D. Wusyk First published in a series “Perpetuate or Liquidate”, adapted from Beyond Survival by Léon A. Danco

t’s a chilling thought to most owners of family businesses, but the overwhelming odds are that not too long after the founder dies, the company will close-up shop or it will be sold. Unfortunately, the fate of the business is often decided by the banker and lawyer on the way back from the funeral—about four cars back from the flowers. The family-owned or managed business is truly today’s most endangered species. Its preservation is the greatest single challenge facing middle-aged owners in this country. I would personally hate to see it disappear because owning one’s own business is an unequalled source of satisfaction, challenge and fulfillment. For our country, the disappearance of the independent business owner would be social disaster. Not only is it the embodiment of the North American dream, but it is also the finest way of life in which to do meaningful work and create a tangible monument to our guts, our sweat and our ingenuity. It is for these reasons that I feel that the single, most important task of the president of a family-owned company is to train their successor (or successors) so that the company will survive its founder. This business represents all the hopes and all the dreams, all of the challenges and all of the pain which man is capable of imagining. In order to fulfill the dream, which they built with their suffering and sweat—in order to know the payoff of this suffering—one needs to know that what they created will live on after them. First Responsibility Unfortunately, a founder rarely realizes that their management style lavishly supports a profitable hobby, but today it is not the way to run or perpetuate a business. The owner must realize that their responsibility is not to always make more money, achieve more sales, or employ more workers than anyone else. 86

Edmonton Construction Association • SPRING 2014

The owner’s primary job is to perpetuate their business. That’s why I don’t look upon owner managers as the “fathers” of their businesses; I look upon them as the “mothers”. They conceived the business, bore it through the labour pains of hard times and bragged about its adolescent achievements. They must now prepare to set it free. Here owner executives often fail… miserably. In their failure, they sow not only the seeds of their own destruction, but also the destruction of others who have laboured along with them in the raising of this child and who are counting on the future of this business. The source of the destruction is in the very nature of the owner-manager—their unwillingness to trust anyone but themselves. In the majority of family-owned businesses, an organization chart does not exist. The owner manager often depends upon second-class advisors, a non functioning and/or “rubber stamp” board of directors, and an archaic accounting system. Long Live the King One of the basic problems of the family-owned business is that too often, the shareholders, directors and employees are all one person: the founder. Sometime between the ages of 30 to 40, newly quit or fired from his or her last job and confident that he/she could do it better by himself/herself, this self-appointed CEO scrapes together enough cash to start on his or her own. Since he/she can’t find anyone else more qualified, and because he/she holds or owes all the marbles, he/she appoints himself president. The company founder starts with nothing and grows the business slowly, hopefully getting bigger and better. He or she is the first annual king/queen of a dynasty; he/she can’t talk to other kings because he’s/she’s working 18 hours a day, his/her children don’t remember what their parent looks like, the dog bites him/her when he/she comes in the door, and his wife/her husband knows him/her mostly as an empty chair at the dinner table. When the company founder finally does find time to talk with other monarchs, he or she tells him/herself privately, “My kingdom is different.”

The women and men who run these businesses with guts and nerve are for the most part lonely, scared, tired, harassed and running out of time. At age 50 a person has, on the average, only 300 months more to live. The first 200 of these months will be devoted to their business. For those 200 months, the owner often has no written plans, no organizational chart, no calendar, no shared vision of the future, and no idea of what they will eventually do with their business… or the last 100 months. Yet, unless the president of the family-owned business trains their successor(s) on a regular, formal basis, they risk not only the loss of their dream, but they also contribute to a withering away of the North American dream. One million owner-managed businesses in Canada generate onehalf of the Gross National Product. They are the constant reminder that in this land of opportunity, a person can still dream big and be their own boss. We have become a nation of family-owned businesses—surviving for the most part, however, for only one generation. In the last 100 months, the founder must begin transferring his or her energy from reaping the harvest to replanting for tomorrow. Somewhere down the line are the children and successors, but Mom or Dad is still really running the show. The successor is often told, in effect, “shut up, watch, and you’ll learn.” That’s not a curriculum; it’s a recipe for chaos. If the company founder’s children grin and bear it, they may inherit. Bright young men and women find that shoveling sand, filing invoices or loading trucks are hardly useful pre-requisites for becoming president of the company and poor use of their B.Comm., MBAs or perceived “experience.” The founder must cease to be the company’s oldest and hardestworking employee. Instead, he or she must take on the role of teacher (CTO – Chief Training Officer) with the successor as their brightest student. The curriculum must take into account the real nature of the business, with regular progression steps that incorporate standards

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One of the basic problems of the family-owned business is that too often, the shareholders, directors and employees are all one person: the founder.

of interim accomplishment. The student can’t go from general manager in charge of the company picnic directly to executive vice-president. Owner managers must learn to allow their heirs to make mistakes. The mistake at the learner level may cost $10,000—or even $100,000—but this is nothing compared to the whoppers they can make when they control the whole company. In the long run, a $100,000 mistake might be the cheapest blooper a company ever made because, if learned, the lesson may avert a disaster down the road.

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Edmonton Construction Association • SPRING 2014

The Language of Business Included in any curriculum for potential presidents should be a thorough understanding of finance. This means teaching a true understanding of financial matters—a knowledge of such things as profit centres, sales forecasting, return on investment, ratios, cashflows and working capital issues—the list is endless. Accounting is the language of business; it is the way in which information is transmitted from one business person to another. There is a useful way of presenting data. As business managers become more proficient in using accounting methods, they become clearer in the presentation of essential data relationships. They find themselves better able to explain and justify both organizational and financial concepts. They can clearly plan for and intelligently converse about the future of their busi-

In whatever time that remains to the owner, there are steps that they must take to perpetuate their dream through the family business.

ness. They can articulate their goals to those who need to know—bankers, partners, and heirs. What happens to most owner managers when they approach the language of business accounting? They upgrade “The Bookkeeper” and refer to them as “The Treasurer.” Their real function is to massage the figures the boss gives them, plug balances and then hide any records from all others, regardless of their need. They are the centurions guarding the tomb. The king or queen reigns supreme by virtue of this information gap and a penchant for secrecy. He or she controls by withholding information—but doesn’t necessarily do it deliberately. Since he or she could often do the job in the company quicker and better than anyone else, it is often difficult for him or her to understand why he/she should bother to share information with his/her subordinates. But the owner manager concerned about training a successor must learn to rely on managers and/or outside directors as the doers, and as they take on the major responsibility as the heir’s co-teacher. From the moment they realize the all-consuming nature of this task, they also realize that there is never enough time left; that too much of their knowledge of the operation is written in their mind and it must be transcribed in an orderly, usable fashion in order for the successor to find it of value. In whatever time that remains to the owner, there are steps that they must

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Gold Seal

advancements and improvements further enhance value Certification program enhances application process, promotes continuing value of certification

his past year saw small changes to the Gold Seal Certification Program, but big benefits to those seeking certification or already in receipt of Gold Seal certification. Following the development of a new online application system last year, the Gold Seal Certification Program continued to seek improvements to the user interface, the virtual experience, and the submission process through the Gold Seal website. “We were extremely pleased with the introduction of our new online system, and heard great feedback from across the country and the construction industry from those using it,” says Stephanie Wallace, manager of the Gold Seal Certification Program. “With that in mind, and through our own internal review system, we initiated new changes to make the system even better. It is now more responsive and intuitive, providing value-added convenience for all users.” In addition to administrative changes, some of the new enhancements to the online system include the ability to upload up to 10 additional documents in the application process. This allows for applicants to include more background information in their submission. This change, while small, does provide applicants with the additional comfort that they can use as much, or as little, documentation required to meet the application needs.

Edmonton Construction Association • SPRING 2014

Another change, meant to enhance the user experience, is the “Save” function on the application. Now, applicants can start an application, complete as much information as possible, save their application, and return at a later date to complete it or make changes prior to submission. Once again, this change was made to ensure a seamless and easier user experience. “We have continued to receive positive feedback on these changes,” Wallace continues. “Our hope is that this system can continue to grow the Gold Seal Certification Program by providing for a well-constructed application system for current and future applicants.” The Gold Seal Certification Program continues to make efforts to detail and showcase the benefits of Gold Seal certification to those within the industry, as well as the general public. This past year, Gold Seal staff visited several jobsites to meet with Gold Seal-certified individuals, and discuss just that. The result has been the creation of videos outlining the benefits of Gold Seal certification, from several different perspectives, including contractors, superintendents, and construction owners. Available on the Gold Seal Certification YouTube channel, new videos are expected to talk about Gold Seal as a human resource strategy and the role of Gold Seal in professional development and education. Outside of the office, 2013 saw the number

of Gold Seal-registered projects continue to grow, with four more projects being recorded this year. Across the country, Gold Seal Projects are a reflection of experience, competency, and

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practitioners in the Gold Seal Certification Program. This designation was created to recognize construction managers with a wealth of experience in the industry. Since its inception to completion, the national Gold Seal Certification Program has been extremely proud of the number of individuals reaching

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End-to-end infrastructure solutions • Project planning & engineering • Pipeline, power & telecom installs • Renewable energy projects • Maintenance & Emergency response

this milestone, which has continued to show-

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case the expertise and experience available

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in the Canadian construction industry. For more information about this and other Gold Seal certification initiatives, including how you can become certified, visit goldseal-

Robert B. Somerville Co. Limited 13176 Dufferin Street King City, Ontario, Canada, L7B 1K5 905 833 3100 www.rbsomerville.com

certification.com. V 635077_Robert.indd 1

ECA Breaking Ground • SPRING 2014 29/03/1393 2:09 AM

Teamwork makes the dream work

Edmonton Construction Association â&#x20AC;˘ SPRING 2014

Adler celebrates 30 successful years of service! By Jillian Mitchell

hen Curt Scheewe and his sister, Karla Williams, took over the family business in 1999, they inherited a 12-man, out-of-garage operation. Today, Adler Group of companies has expanded to three separate locations in Calgary, Saskatoon and Edmonton, with a staff of 120 people. “We were both young, really driven and wanted to see what we could do, so we went for it,” Scheewe says of the business venture with his father, Harold Scheewe’s, company founded in 1984. The secret to this rapid success, he says, was embracing a teamwork mentality. “Dad was a one-man show, and he did well at that. But [my sister and I] began to delegate to other people and give them things to do that they were good at, and the business took off.” Mechanical insulation was the company’s main scope in 1999, when the duo took over ownership. Since then, additional firestopping and fireproofing (structural fire protection) services have been added to the team’s roster. “Watching our team develop has been great,” he says. “We look to grow in our current cities and in a few new cities. Moving forward, we see that it’s more about quality of service, safety and relationships than it is about having the lowest price.” Adler continues to foster good relationships with all clients, an approach Scheewe notes as integral, specifically in this digital age. Over the years, many beneficial relationships have been fostered with valued clients such as PCL Construction, Bird Construction, Ledcor Group, Clark Builders, Delnor, and Graham on the contractor side; and Arpi’s North Inc., Schendel Mechanical

AN EFFICIENT, PROFESSIONAL EXPERIENCE. Celebrate 30 years with Adler!

Withstanding the test of time, Adler (est. 1984) is a premium commercial service provider of mechanical insulation and structural fire protection in Western Canada.

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1.800.364.0027 | www.adlerfirestopping.com EDMONTON - Head Office #23, 53016 Highway 60 Acheson, AB T7X 5A7 P: 780.962.9495 F: 780.962.9794

CALGARY #1, 3800 - 19th Street NE Calgary, AB T2E 6V2 P: 403.590.0758 F: 403.590.0742

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ECA Breaking Ground • SPRING 2014 95

A surety solution that’s right for your business It can be hard to prepare for everything that life can throw at your business.At Aviva Surety, we work hard to understand your unique needs, and offer knowledgeable business advice and a customized facility to help build your competitive advantage in the construction market. Aviva Surety is one of Canada’s most trusted and valued surety advisors. To find out how we can arrange a surety facility for any class of business, talk to your broker today. For more information on Aviva Surety, call us at (800) 563-1351 or (780) 945-2202, or visit us at www.avivasurety.com

Aviva and the Aviva logo are trademarks of Aviva plc and used under license by Aviva Canada Inc. and its member companies.

Edmonton Construction Association • SPRING 2014

Contracting Ltd., Lockerbie and Hole Contracting, Priority Mechanical Ltd., Goldbar Mechanical Co., Web, and Strathcona Mechanical Ltd. on the mechanical side. Senior estimator Curtis Schoepp has been with company since its inception and can attest to the company’s rapid growth under its successors. “I was one of the first guys hired. We grew slowly then,” says Schoepp, who was later part of projects such as the Edmonton International Airport and The Edmonton Clinic South. “But 1999 was the beginning of establishing what we have today. We started servicing in the Edmonton area and then moved into Calgary in 2005, then to Saskatoon in 2009. That’s the way it’s been moving.” Similarly, as colleague Joe ChinYaVong confirms, the company’s people-first and

steady-growth approach has earned them their golden reputation. “When I came into the marketing position in 2010, it was more about redefining ourselves and our vision going forward; without vision you have no direction,” says ChinYaVong, business development lead. “Strategy and growth isn’t about being bigger, stronger, faster, better; it’s about the add-value/market niche. It’s always good to look back and reflect on what has made you successful, and what I perceive is that the success came from the hard work of the team and the company’s atmosphere of growth.” V

Horizon Mechanical is a full service mechanical contractor for any new construction, commercial or light industrial project. Horizon Mechanical Ltd. has a broad resume, we can start at the street, finish at the roof and everything in between. We are a complete mechanical company and have the on site Journeymen that are proficient in the following aspects of the trade: • Plumbing • HVAC • Heating • Gas Fitting

• Air Conditioning • Geo Thermo Heating & Cooling • Water, Sanitary, Storm and Gas Service

• Commercial and Light Industrial • Site Civil Work

New location! 216 - 61501 Highway 41, Bonnyville, AB Phone: 780-826-3331 | Fax: 780-573-2587 | www.horizonmechanical.ca ECA Breaking Ground • SPRING 2014 97

Executive Summaries

Learning from the past for success in the future Deb Smith | Page 26 Two past presidents of the Edmonton Construction Association (ECA) exemplify the diversity of strong leadership that has helped to build the reputation and success of Alberta’s construction industry, steering it through the inevitable booms and busts of change: John Moquin, vice-president and general manager of Lehigh Hanson Canada, parent company to Inland Concrete, who took his place as president of the ECA in 2003; and Paul Verhesen, who served as president of the ECA in 2011, bringing his “outside the box” style of management to the association. Verhesen developed his can-do management style through extensive experience on the contractor side of the construction industry, whereas—in the same spirit of serving the industry—Moquin has continued his volunteer commitment, taking a place on the Alberta Construction Association Board

and as president of both the Alberta Sand & Gravel Association and the Alberta Ready Mix Concrete Association. Both men recognize that the industry is at the top of a cycle right now and predict it will turn down in the future, as has happened before. They each bring a perspective on riding out the cycle based on personal and professional experiences within the industry. Moquin and Verhesen have pledged their experience and commitment to the ECA and the construction industry at large, looking toward a balanced future no matter where the wheel of fortune rolls. V

Electrical / Instrumentation

Bill Willcox

#108, 11602 - 88th Ave. Fort Saskatchewan , AB T8L 0K1 Office: 780-997-9490 Generators Sales / Service / Rentals Cell: 780-718-9105 Spray Foam Installtion Fax: 780-997-9498 Concrete Slab Jacking bill@hunterpowerenergy.com

Power Systems

Edmonton Construction Association • SPRING 2014

Executive Summaries

New Royal Alberta Museum: A dynamic duo of past and present Melanie Franner | Page 30 For over five decades, the Royal Alberta Museum has played homage to the province’s natural and human history with more than 10 million objects in its collection. But the need to expand finally outgrew existing space limitations. Once complete, the new museum will double the amount of gallery space, offer direct connections to public transit and have the ability to host major international exhibits and rare artifacts. An inspiring piece of architecture that brings together the old and the new, the

Royal Alberta Museum calls on the expertise of several leading design and construction companies to create an engaging and dynamic environment that will provide lasting appeal to visitors of all generations. The $340-million project will see the new museum erected on the former Federal Post Office site in downtown Edmonton. The 1966 building’s original Ernestine Tahedl mosaics will be preserved and incorporated into the new museum’s exterior façade as a testament to the history and heritage of

the building. Also included will be the original Provincial Museum of Alberta’s bronze friezes. The new Royal Alberta Museum is designed to educate, inspire and entice young and old (and everyone in between). Construction is scheduled to be completed in mid-2016, with the grand opening taking place in late 2017 to allow for time to acclimatize the building and install the exhibits and collections. V

TORCH-ON MEMBRANES SINGLE PLYS TAR & GRAVEL

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Please recycle this magazine once you have read and shared it. ECA Breaking Ground • SPRING 2014 99

Executive Summaries

The four pillars of success Jillian Mitchell | Page 34

100

Edmonton Construction Association • SPRING 2014

The Edmonton Construction Association (ECA) prides itself on being the “best tool on the belt”—as the largest commercial construction association in Western Canada, with close to 1,200 members. They do so, however, with the recognition that even the best tool must be properly maintained— hence the identification of four key areas of focus with which to guide the association forward: collaboration, education, networking and procurement. For McNicoll and fellow ECA board executives, collaboration is an all-encompassing idea, speaking to the community within the entire ECA membership, as well as with stakeholders and affiliate organizations such as the Merit Contractors Association, the Canadian Construction Association (CCA), Defense Construction Canada (DCC), Alberta Infrastructure, Alberta Health Services, and the City of Edmonton, along with other local municipalities. Educating today’s youth is another focus of the association, as is the education of government. Classes and seminars on a variety of industry topics, such as insurance, bonding, leads, accounting, technology, safety, and succession planning, are among the most attended, while new offerings are continually added to the roster. Community relationships and friendships are even as important as work. Thus, regular ECA networking events—a total of 15 per year—offer the best mix of business and pleasure. Providing procurement opportunities to member firms is the fourth tenet and as such, the ECA recently joined COOLNet Alberta, a central online hub for all public and private project opportunities in Alberta, in order to decrease fragmentation within industry. Together, though seemingly separate, these four pillars interact to create a unified and desired vision of the future for the ECA. V

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ECA Breaking Ground • SPRING 2014 101

Executive Summaries

New ECA group, YBG, focuses on next generation Melanie Franner | Page 48

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102

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Edmonton Construction Association • SPRING 2014

Thanks to a small core of enthusiastic and committed individuals, the Edmonton Construction Association (ECA) now offers a specialized committee dedicated to creating a unique environment geared to fostering and nurturing the future leaders of the construction industry. The ECA’s Young Builders Group (YBG), which came to official fruition at the ECA’s Annual General Meeting and Luncheon on February 7th 2014, is being governed by a working committee consisting of a group of individuals willing to go and above beyond their “day” jobs to create a truly dynamic and supportive working group. That mandate, to promote the growth and development of young construction professionals through education, community activity and networking, with the goal of strengthening the construction industry in Edmonton for the next generation, has generated such intense interest that the committee itself had to be expanded to include 12 people. Although the YBG is reportedly geared to young individuals, there is no age limit or specific type of individual being sought. Individuals who are new to the industry or are still in the first-half of their career are welcome, as are workers from across the industry—not just the professionals. By focusing on those individuals still working within the first-half of their career, the YBG is targeting people who are still developing their skills and expertise. With the YBG launch already a huge success, committee members are looking ahead to focus on fulfilling the newly minted mandate of education, network and community. There are currently three potential events under discussion, and other events in the works. V

Executive Summaries

New trade definitions clarify scope of work in preparing bids Lisa Fattori | Page 58

The recently released Alberta Construction Trade Definitions offer a comprehensive single source to which contractors can refer when bidding for a tendered project. Researched and drafted by the Edmonton Construction Association (ECA), the document updates existing trade definitions and includes new technology-related entries, for a guide that is modern and relevant for today’s construction projects. Historically, the Alberta Construction Association (ACA) oversaw periodic updates to the construction industry’s trade definitions. With the cancellation of ACTS a decade ago, however, updates to trade definitions also went by the wayside, and had only received minor changes up to that time. Enter the ECA: seeing the need to revamp the trade definitions document, the ECA established a committee to work on the project and after 18 months of consultations, including input from 11 trade associations, the 114page document was rewritten and released January 13th, 2014. Accessible to all contractors across the country, the updated trade definitions will be updated annually to offer definitions that are current and universal from coast to coast. The ECA’s renewed partnership with the ACA and the new COOLNet Alberta are indicative of the trend toward integration and co-operation within Alberta’s construction industry. The 2014 Alberta Construction Trade Definitions is an invaluable tool that clarifies the scope of work for individual trades and is a comprehensive guide that is expected to become mainstream within the province and beyond. V

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ECA Breaking Ground • SPRING 2014 103

Index to

advertisers

A & B Concrete Pumping........................................................................................... 93 A & H Steel Ltd................................................................................................................19 Accent Walls Ltd............................................................................................................ 56 Adler Firestopping Ltd................................................................................................ 95 Agra Foundations Limited........................................................................................3 Alberta Construction Safety Association............................................................88 Alberta Roadbuilders & Heavy Construction Association......................... 42 Alberta Wilbert Sales...................................................................................................60 All Weather Windows.....................................................................................................7 Alliance Excavating Ltd............................................................................................. 101 Allspec Asphalt................................................................................................................22 An-Mar Concrete Pumping Co. Ltd..................................................................... 101 Arcom Technical Services Ltd................................................................................. 35 Arthur J. Gallagher & Co.............................................................................................. 15 Associated Engineering..............................................................................................84 Aviva Surety....................................................................................................................96 B & B Demolition Ltd.................................................................................................. 27 BDO Canada LLP.......................................................................................................... 57 Belvedere Roofing Ltd................................................................................................. 55 BHP Mechanical Ltd................................................................................................... 101 Black Diamond Paving............................................................................................... 36 Brock White Canada.................................................................................................... 74 Builders Floor Centre Ltd............................................................................................16 Burnco Rock Products................................................................................................68 C.W. Carry Ltd.................................................................................................................. 31 Can-Alta Roofing Ltd...................................................................................................99 Cana Construction Ltd................................................................................................ 64 Can West Concrete Cutting & Coring Inc........................................................... 85 Carmacks Enterprises.................................................................................................90 Cast Supply Edmonton Inc.......................................................................................99 Central Mechanical Systems.....................................................................................18 Challenger Geomatics Ltd........................................................................................ 101 Coolnet Alberta.......................................................................................................... 77 DGS Construction Ltd................................................................................................. 28 Donalco Western Inc...................................................................................................84 EBA......................................................................................................................................68 Edmonton Fasteners and Tools Ltd......................................................................88 EllisDon Construction Services Inc......................................................................83 Elms Weeping Tile Ltd................................................................................................. 31 Emcee Construction & Management................................................................... 49 Empire Mechanical Contractors Inc..................................................................... 64 Envirolift Systems Ltd................................................................................................ 101 Equity Plumbing & Heating Ltd...............................................................................18 ESC Automation.............................................................................................................91 Ewel......................................................................................................................................19 Flo Tech Pump................................................................................................................ 56 Gateway Mechanical Services............................................................................... 101 GK Mechanical................................................................................................................81 104

Edmonton Construction Association â&#x20AC;˘ SPRING 2014

Go Nissan North............................................................................................................ 37 Graham.............................................................................................................................. 73 GS Holdings........................................................................................................................4 H.O. Concrete Supplies Ltd.......................................................................................50 Harris Steel Services Ltd............................................................................................ 74 Horizon Mechanical..................................................................................................... 97 HUB International Phoenix Insurance Brokers............................................ 102 Hunter Power Energy..................................................................................................98 IC Solutions...................................................................................................................... 39 ICS Group Inc.................................................................................................................. 13 Interworks Contracting Ltd......................................................................................20 J.H. McKenzie Electrical Contractors Ltd...........................................................38 J.s.l. Mechanical Installations Ltd.........................................................................40 Jardine Lloyd Thompson Canada Inc...................................................................80 Jayson Global Roofing...............................................................................................IFC Jensen Contract Flooring Ltd................................................................................... 28 Kehoe Equipment Ltd................................................................................................. 55 Keystone Excavating Ltd......................................................................................... 106 Klondike Disposal................................................................................................ 12 & 69 Knights Roofing Ltd.....................................................................................................84 L & D Distributors Ltd..................................................................................................61 Leading Edge Roofing & Consulting Inc............................................................. 52 Ledcor............................................................................................................................ OBC Leds..................................................................................................................................... 57 Lehigh Hanson Materials...........................................................................................22 Lindberg Construction................................................................................................. 51 Macroe Group of Companies....................................................................................91 Makloc Construction Inc........................................................................................... 55 Merit Contractors Association................................................................................. 79 Mid-City Excavating Ltd.............................................................................................11 Miller Thomson LLP.................................................................................................... 39 Mytec Framing Specialists........................................................................................40 Nait.......................................................................................................................................9 NCV Industrial Inc..................................................................................................... IBC Nilex Inc............................................................................................................................ 39 Nordic Systems...............................................................................................................60 O’Hanlon Paving............................................................................................................ 31 Petrocom Construction Ltd........................................................................................ 13 PF Custom Countertops............................................................................................. 32 Predictable Futures Inc............................................................................................... 87 Pumps & Pressure Inc.................................................................................................. 21 Richard McDonald & Associates.............................................................................61 Robert B. Somerville Co. Limited........................................................................... 93 Rolling Mix Concrete (Edmonton) Ltd.................................................................. 17 Roterra Screw Piling Ltd............................................................................................. 53 RS Sterling Fire Protection........................................................................................ 52 Safway Group Holding...................................................................................................5 Sait..................................................................................................................................... 43 Scafom Canada.............................................................................................................. 42 Scorpio Masonry........................................................................................................... 46 Skyway Canada Limited............................................................................................89 Spatial Technologies................................................................................................... 103 ECA Breaking Ground • SPRING 2014 105

Splashdown Eaves.........................................................................................................61 Stahl Peterbilt.................................................................................................................. 23 Strathcona Mechanical Limited..............................................................................61 Supermetal Structures Ltd........................................................................................ 29 Temple Contracting Inc.............................................................................................. 72 Terrateam Equipment Sales & Rentals..............................................................100 Titan Environmental Containment Ltd............................................................... 33 Westburne Electric Supply Ltd................................................................................ 93 Western Air & Power Ltd............................................................................................ 41 Western Weather Protector Ltd............................................................................... 52

We’ve been moving dirt a long time.

Our passion, our focus and our business is, and always will be, dirt. Ed Elias: Keystone Founder, Circa 1958

ourlifeisdirt.com

™

Keystone Today

Safety is

EST. 1981

106

Calgary: 4860 - 35th Street SE 403.274.5452 Edmonton: 11474 Winterburn Rd NW 780.477.5452

Edmonton Construction Association • SPRING 2014

Please support the advertisers who helped make this publication possible.

NCV Industrial Inc. (NCVI) was incorporated in March 2005 as a sister company to Ryfan Electric Ltd. and has offered multi-discipline Industrial Construction services since its inception. Project management and administrative systems were co-developed and shared between NCVI and Ryfan Electric’s Industrial division (RIE), to the degree that, in 2007, NCVI fully integrated RIE into its own operations. The NCVI management team has, on average, 20 years of multi-discipline Industrial Construction experience encompassing projects all over the globe and in the most extreme conditions.

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