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BREAKING GROUND – FALL 2015
Table of Contents 12
Message from the Executive Director of the ECA, John McNicoll
16
Message from the 2015 President of the ECA, Chris Ambrozic
18
ECA Executive Committee and Directors
20 Alberta Construction Association Update 24 Living in an Electronic World: The ABCs of COOLNet 32
Procurement by the Numbers
34 Meet the COOLNet Team 40 On Demand Brings One-Stop Shop Convenience to COOLNet 42 Tailor Your Invitation-Only Projects Through COOLNet 44 Etegri: The Next Step 46 Stories from the Procurement Vault 52
High Quality Versus Low Price; Qualifications Based Selection
56 Making the Deal: The Buying and Selling of Construction Projects
8
Edmonton Construction Association WINTER 2016
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
2015 ECA EXECUTIVE COMMITTEE Chris Ambrozic, President Dave Bentley, Vice-president Alan Kuysters, Treasurer Barry Pfau, Chairman 2015 ECA DIRECTORS Don Barr Roger Buksa Trevor Doucette Paul Forgues Rob Grant Conal Hancherow Mark Lindquist Trevor Panas Tom Redl Andrew Ross Joe Rotella Ken Stewart www.edmca.com
Cover image credit: Sophie Maisonneuve
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BREAKING GROUND – FALL 2015
Table of Contents
64 Real Progress in Real Time with COOLNet 66 Tools of the Trade: Williams Engineering in Edmonton Keeps Current with COOLNet 68 Discover the Benefits of ECA Membership 70 Emerging Risks in Construction: Getting Conversation Started on Integrated Project Delivery 72
Gold Seal Certification: Many Pathways, One Distinction
76 Take-Offs from Two Angles 82 Building to Suit: Kasian Customizes with COOLNet 86 Broadening Strokes: Using COOLNet to Expand Opportunities 88 Path to Predictability: A Program for the Long-Term Health of Businesses Through Succession 93 Innovation from the Ground Up: Keller Canada 96 Index to Advertisers 98 Alternative Plans, Featuring ECA Eddie
ECA Breaking Ground Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 www.delcommunications.com President David Langstaff Publisher Jason Stefanik Managing Editor Shayna Wiwierski shayna@delcommunications.com Advertising Sales Manager Dayna Oulion Toll Free: 1.866.424.6398 Advertising Sales Robert Bartmanovich Cheryl Ezinicki Corey Frazer Jennifer Hebert Michelle Raike Anthony Romeo Colin James Trakalo
Production Services Provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director Kathy Cable Layout & Design Dana Jensen Advertising Art Sheri Kidd Joel Gunter © Copyright 2015. 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 11/2015
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Edmonton Construction Association WINTER 2016
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www.pfcustomcountertops.com ECA Breaking Ground • WINTER 2016 11
Message from the Executive Director of the ECA
John McNicoll T
his issue of Breaking Ground is focused on procurement, because 80 per cent of our members say that access to work is the number-one reason they are members of the ECA. We are a business association that focuses on the common good and the shared spaces that create successful business for us all. The access to business that COOLNet creates and our unique relationship with
all public procurement tendering authorities means that essentially all of Alberta’s public projects are available on COOLNet. As you will see, we are now making great gains in the private listings on COOLNet. This issue has in-depth discussion of procurement issues and the truth of what is really happening out there. Association leadership is critical to constant improvement of our construction
industry and the elevation of our total capacity. The board, our members, and our staff are all committed to ongoing improvement and innovation in every aspect of construction excellence; procurement, management, strategic plan execution, HR, BD, safety, legal, finance, risk management, standard contracts and documents. These are shared concerns for all of us.
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Edmonton Construction Association WINTER 2016
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This has been a very strong year for the ECA. Membership has hit an 85-year alltime high at 1,240 members! Your board continues to be very engaged and involved in strategic planning, oversight and good governance. To serve you this year, we will focus on the following goals; In networking, we will make events more focused on your business’ success enabling the right connections at the right time. In education, we’ll continue to offer the most popular of our introductory and executive-level courses. We will also expand our course coverage in critical areas like construction law, estimating, finance, and communication. We’ll also continue to promote best practices in trade definitions, documents, and nationally standardized construction contracts that will help protect you from litigation. As a group of 50,000 people, the ECA’s buying power will enable us to increase your profit by lowering costs for your company, your employees, and your families as
we purchase phones, trucks, power, and other essential construction tools at massive discounts. We will advocate and collaborate on your behalf with all relevant departments of the City of Edmonton, municipalities, Alberta Infrastructure, Grant MacEwan, NAIT, the CCA, ACA, AAA, CEA, APEGA, and Alberta’s local construction associations. We will equip, connect and strengthen your employees who are in the first half of their construction careers with excellent YBG events, mentoring programs, and education. The YBG is energized, healthy, and growing every day. Our 2016 goal is for over 1,000 YBG members. It’s free to join. Finally, in procurement, the greatly enhanced COOLNet platform will help you with its growth in usage and improved functionality, while providing your firm with access to a record high of over 4,000 construction projects across Alberta. Additionally, 28 ECA member firms are now utilizing COOLNet On Demand as their exclusive private plan room, and your company is listed in the directory of every private plan
room, allowing for your inclusion to invited tendering. It’s a powerful free tendering tool for all of our members that enable efficient communication of all plans and specs – transforming COOLNet into your onestop shop for all of your public and private sector project opportunities. It’s better than you know – you own it, you paid for it – why not use it? Alberta’s new Minister of Infrastructure, Brian Mason, is committed to a leadership of developing new efficiencies and a modernization of procurement. COOLNet, the construction industry of Alberta’s leading opportunity network will be utilized for online bid submissions for Alberta Infrastructure to serve the government and contribute to their goals of modernization, efficiency, and productivity improvement. A trial period of implementation will soon begin – GOA leadership and the adoption of COOLNet’s Electronic Bidding platform will be an historic milestone in construction modernization in Alberta and will have positive ripple effects throughout every level of the industry. Every trade, supplier, manufacturer, general contractor, developer, architect, engineer, and owner will benefit from the efficiencies and cost savings created from this new electronic procurement process. In light of today’s economic challenges, and because of the ECA’s current financial health, I am pleased to report that our board has reviewed pricing for our 2016 membership and has decided not to increase your membership price. We will have fee increases in the years ahead, to keep pace
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this year, costs will remain the same. To assist in holding fees at current levels, we will
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with rising costs and inflation, however, for
Edmonton Construction Association WINTER 2016
We look forward to supporting your success in 2016 as we continue to be your hub of construction excellence! If you ever have ECA feedback or concerns, please connect with our office by phone or by email. All the best in your procurement work! V
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Message from the 2015 President of the ECA
Chris Ambrozic T
his has been an interesting and exciting year for the ECA. On a macro level we have gone through a provincial election where we are working with our provincial counterparts at the ACA to help steer our agenda with the new government. This is important to our member firms as we advocate for a consistent spend on construction and fair procurement. We are also now looking at a federal election, and as I write this, we are still a couple of weeks away from the results. Depending on the outcome, we will put some pressure on our national body, the CCA, which represents our member firms. On the local level, the board focuses nearly all of our effort in making the member experience a positive one. The board of directors is a highly motivated group serving not only at our board meetings, but also in committees that help drive important initiatives into our organization. I want to thank each of them for their engagement this past year. We have achieved an all-time high in the number of members, and I believe this is to a strong degree a result of director contributions.
We recently had a retreat in Jasper where we focused on our 2016 (and beyond) strategic plan. We put a new twist in the retreat where we had an education piece for the directors put on by the U of A teaching us about governance. Also, we brought in YBG leadership to help us guide our strategic plan. Thanks to Jillene Lakevold (All Weather Windows), Jimmy Murphy (Lloyd Sadd Insurance), Travis Blake (R3 Deconstruction), Shannon Fitzsimmons (Leder Steel), and Christine Tenove (Lloyd Sadd Insurance) for attending the weekend on behalf of the YBG; their input was invaluable. We broke into four groups: networking, procurement, education, and member care, and the result is a work plan going forward that will absolutely make your experience as a member better. I encourage you as members to take advantage of what the ECA has to offer, as the quality of programs continues to improve in all of our areas. Remember, you own your own experience at the ECA and if you choose to connect, the result will be a positive one for your business. Guaranteed. V
#201, 9333 - 45 Avenue | Edmonton, AB T6E 5Z7
t: (780) 436-9860 or toll-free: 1-866-436-9860 f: (780) 436-4910
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The Voice of the Heavy Civil Construction Industry in Alberta 16
Edmonton Construction Association WINTER 2016
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EXECUTIVE COMMITTEE
Vice President Chris Am brozic COMMITTEE EXECUTIVE Scorpio Masonry (Northern) Inc.
Treasurer Alan Kysters PCL Construction Management
Inc. EXECUTIVE COMMITTEE
Executive Committee President Chris Ambrozic Scorpio Masonry (Northern) Inc. Vice-President Dave Bentley Marsh Canada
Treasurer Vice President Vice President Alan Kysters Chris Am brozic Dave Bentley EXECUTIVE COMMITTEE PCL Construction Management Treasurer Scorpio Masonry (Northern) Inc. President Vice EXECUTIVE COMMITTEE Chairm an HUB International Treasurer Inc. Kysters Alan Am brozic Chris Barry Pfau Phoenix Insurance Brokers Alan Kuysters PCL Construction Manage Scorpio Masonry (Northern) Inc. Westcorp Inc. PresidentPCL Construction Management Inc. Treasurer Treasurer President Vice President Barry Pfau Dave Bentley Dave Bentley BarryDave Pfau Bentley Ledcor Construction Limited HUB International HUB Chairm International Ledcor Construction Limited Phoenix Insurance Brokers an HUB International Vice President Phoenix Insurance Brokers Chairman Barry Pfau Phoenix Insurance Brokers Dave Bentley DIRECTORS Westcorp Barry Pfau Chairm an HUB International Chairman Vice President Chairman Barry Pfau Phoenix Insurance Brokers Vice President Marvin Olansky Chris Ambrozic Westcorp Marvin Olansky Chris Ambrozic A & H SteelWestcorp Ltd. Scorpio Masonry (Northern) Inc. Conal Hancherow A & H Steel Ltd. Scorpio Masonry (Northern) Inc. Thermo Design Insulation Ltd. Don Barr Lloyd Sadd Insurance Brokers Ltd.
DIRECTORS
DIRECTORS DIRECTORS
Directors
-30-Hancherow Conal DIRECTORS Roger Buksa M ark Lindquist Thermo Design Insulation Ltd. Don Barr Arpi’s North Inc. Emcee Construction and Lloyd Sadd Insurance Brokers Ltd. Conal Hancherow Mark Lindquist Don Barr Don Barr Don Barr Management Ltd. Design Insulati Thermo Don Barr Emcee Construction and Management Ltd. Lloyd Sadd Insurance Brokers Ltd. Lloyd Sadd Insurance Brokers Ltd. Lloyd Sadd Insurance Brokers Ltd.Lloyd Sadd Insurance Brokers Ltd. M.W. (Mark) Lindquist Trevor Doucette M.W. (Mark) LindquistEmcee Construction and -30Roger Buksa Trevor Panas Graham Construction and Engineering Inc. Construction and Emcee M ark LindquistManagement Ltd. Trevor Panas Management Roger Buksa Arpi’s North Inc. Roger Buksa Ltd. Inland Concrete Emcee Construction and -30Roger Buksa Arpi’s North Inc. Roger BuksaConcrete Arpi’s North Inc. Inland Management Ltd. Mark Lindquist Arpi’s North Inc. Paul Forgues Arpi’s North Inc. J.P (Jason) Mercier Emcee Construction an J.P (Jason) Mercier A & B Concrete Pumping (2007) Ltd Supreme Steel LP Tom Redl A & B Concrete Pumping (2007) Ltd. Tom Redl Management Ltd. Trevor Doucette Trevor Doucette Chandos Construction Ltd. Trevor Doucette Trevor Construction and Engineering Inc. Doucette Chandos Construction Ltd Panas Graham Construction and EngineeringTrevor Inc.Graham Graham Construction and Engineering Inc. Inland Concrete Andrew Ross Graham Construction and Engineering Inc. Trevor Doucette Andrew Ross Clark Builders Rob Grant Trevor Panas Graham Construction andClark Engineering BuildersInc. Andrew Ross Paul Forgues Paul Forgues CP Distributors Ltd. Inland Concrete Andrew Ross Paul Forgues Paul Forgues Clark Builders Supreme Steel LPSupreme Steel LP Tom Redl Supreme Steel LP J.M. (Joseph) Rotella Clark Builders Supreme Steel LP Paul Forgues J.M. (Joseph) Chandos Rotella Construction LafargeLtd. Canada Inc. Lafarge Canada Inc. Supreme Steel LP Tom Redl Joe Rotella C. (Conal) Hancherow Chandos Construction Joseph Rotella Rob Grant Rob Grant C. (Conal) HancherowThermo Design Insulation Ltd. Andrew Ross Thermo Design Insulation Ltd. CP Distributors Ltd. Lafarge Canada Inc. CP Distributors Ltd. K.J. (Ken) Stewart Clark Stewart Builders K.J. (Ken) Rob Grant Gateway Mechanical Services Inc. Gateway Mechanical Services Inc.Andrew Ross CP Distributors Ltd. Clark Builders Ken Stewart G.J. (Garry) Humeniuk Conal Hancherow G.J. (Garry) HumeniukShanahan’s Limited Partnership Joe Rotella Gateway Mechanical Services Inc. Shanahan’s Limited Partnership Thermo Design Insulation Ltd. Joe Rotella
18
Edmonton Construction Association WINTER 2016 Alan Kysters
Alan Kysters PCL Construction Management Inc.
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Alberta Construction Association Update By Dave Kinley (2015 Chairman)
A
comprehensive operations retreat confirmed the ACA’s priorities remain focused on government advocacy, development and promotion of industry standard practices, and promotion of a skilled workforce. The ACA’s priorities for 2015 are: 1. Maintaining adequate and predictable levels of public investment in the face of declining oil prices. The ACA continues to advocate that the provincial government develop a long-term capital project and deferred maintenance spending program/budget. As Alberta’s largest purchaser of construction services, the Province influences the market price for construction services by adding or postponing (cancelling) projects in a market that is currently operating near capacity. Conversely, the development of projects during slow economic times resulting from a change in oil prices or other economic influences, allows the construction industry to maintain their skilled workforce. A consistent number of skilled workers delivering construction services is critical. The ACA conveyed these recommendations in letters to the Premier and Cabinet; in a meeting with the Minister of Infrastructure and Transportation Brian Mason; in a follow-up meeting with David Dodge, who has been retained by the government to advise them on long-term capital planning; and to Wildrose opposition critics.
2. Working with Alberta Infrastructure and other owners to ensure they remain preferred clients. Specific initiatives include modernizing procurement practices, adoption of industry standard documents, and minimizing delays in payment. Fair procurement practices that recognize the public demand for “best value” should be supported by Alberta Infrastructure (AI). In addition to fair procurement, the government should adopt the use of CCDC standard documents, which clearly outline important commercial terms, such as prompt payment terms and acceptable amounts of liability. Alberta Infrastructure (AI) will be considered a preferred client if they adopt a position of familiarity and fairness with current construction industry practices. A team of volunteer ACA contractors have held a series of meetings with Alberta Infrastructure regarding AI contracts. The ACA’s intent is to advocate that AI to adopt CCDC contracts with minimal supplementary conditions. In responding to the prompt pay issue, the ACA’s board passed the following motions: 1. The ACA initiate collaborative industry dialogue to develop a voluntary industry solution (voluntary code of practice) to demonstrate willingness to lead even before legislation is developed. 2. The ACA advocate for a legislative solution to remedy the issue of late payments that are not in compliance with the payment provisions of the construction contract, using
ACA’s 2015 Board
Executive Directors
• Dave Kinley (Concept Electrical) – Chairman (Calgary Construction Association) • Paul Verhesen (Clark Builders) – Senior Vice Chairman (Edmonton Construction Association) • Paul Heyens (Alberta Glass) – Vice Chairman (Calgary Construction Association) • Scott Matheson (PCL) – Past Chair (Edmonton Construction Association)
Directors
• Fabrizio Carinelli (CANA) – Calgary Construction Association • Stephanie Roll (Executive Millwork) – Calgary Construction Association • Scott Emerson (Inland Concrete) – Edmonton Construction Association 20
Edmonton Construction Association WINTER 2016
• Conal Hancherow (Thermo Design Insulation) – Edmonton Construction Association • Charles Iggulden (Trade Skills Global) – Fort McMurray Construction Association • Tim Moline (Turcon Group) – Grande Prairie Construction Association • Nathan Neudorf (Ward Bros.) – Lethbridge Construction Association • Russ Lorenz (Citadel Mechanical) – Lloydminster Construction Association • Buck Heath (Pad-Car Mechanical) – Medicine Hat Construction Association • Josh Edwards (Scott Builders) – Red Deer Construction Association • Dennis Cascon (SimplexGrinnell) – Red Deer Construction Association
17387 - 108 Avenue NW, Edmonton, AB T5S 1G2 Phone: (780) 477 7663 • Fax: (780) 752 0042
Fair procurement practices that recognize the public demand for “best value” should be supported by Alberta Infrastructure (AI).
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22
Edmonton Construction Association WINTER 2016
CCDC contract language. Further, that the ACA seek a solution that a) accommodates payment provisions in alternate financing contracts, and b) reduces the potential for harming contractors’ reputations in securing repeat business from owners. The ACA has formed a new committee with representation from a number of owner, consultant, and contractor groups to assist in progressing on these motions. The initial focus is to establish a best practice which can be used to help owners, general contractors, and subcontractors meet prompt payment needs for all. 3. Advocating for balanced and reasonable safety and WCB policies and enforcement, with specific focus on silica exposure and on interpretations of refusal of modified work. The ACA is advocating with OHS to revisit the Occupational Exposure Limit to silica dust. The ACA is partnering with a number of associations to urge that the no-fault principle employed by the WCB not apply to post-incident terminations for cause. The ACA has completed a draft silica management practice and is approaching the Alberta Construction Safety Association to develop training courses, followed by job-site testing to determine whether best practices are effective and economically feasible. The ACA also met
To support the long-term growth of a skilled construction workforce, we must partner with Alberta’s educational system to promote an interest in the construction industry. Our industry must be seen as a positive career choice to influence youth to consider a career in construction.
with Job, Skills, Training and Labour Minister Sigurdson to express concerns that the current Occupational Exposure Limit for silica of .025 is not supported by medical evidence and that testing at the .025 level may not be scientifically reliable. 4. Strengthening relationships with Alberta’s education system to develop our future workforce. Clearly, the federal and provincial government, the public, and the construction industry would prefer to hire Canadian workers with the necessary skills to perform the tasks required to deliver a project. To support the long-term growth of a skilled construction workforce, we must partner with Alberta’s educational system to promote an interest in the construction industry. Our industry must be seen as a positive career choice to influence youth to consider a career in construction. The ACA, the Red Deer Construction Association, and Merit Contractors are partnering to offer a pilot program through which educators can receive short-term job shadowing with members. Raising awareness of construction career opportunities will assist educators in providing guidance to students about their options. 5. Continued rollout, adoption, and maintenance of the trade definitions. The use of trade definitions provide clarity to all construction project stakeholders, which in turn reduces confusion, errors, disputes, and litigation. They help to ensure the bids are complete, consistent and compliant. The ACA is drawing on the leadership of the Edmonton Construction Association to develop a new promotional strat-
and print advertising in trade journals, will launch this fall to explain the benefits of adopting trade definitions. V
egy for adoption of Trade Definitions. A mobile-friendly website, tradedefinitions. com, supported by video testimonials
A membership with the Alberta Aboriginal Construction Career Centre (AACCC) will enhance your company’s talent management program and provide solutions for your labour shortage challenges. Membership benefits include: • Access to prospective employees • Space for job postings on the AACCC website • Corporate links on the AACCC website • Cross-cultural awareness training • And more Become a member today. 780.644.5907 aaccc@norquest.ca www.aaccc.ca A partnership between
ECA Breaking Ground • WINTER 2016 23
Living in an Electronic World The ABC’s of COOLNet By Melanie Franner
Park Paving Ltd., an ECA member whose core business is building roads, uses both COOLNet and the On Demand feature for finding and posting some of their projects.
I
t used to be that industry would gather ‘round a table, peering over the shoulder
of a colleague, in order to get a better look at the blueprints of a potential project. The plan room itself would probably be housed at the local association – in this case, the Edmonton Construction Association (ECA). And sure, the ECA remains a pivotal component of the “plan room” of today. But the ease with which industry can now view these documents has increased exponentially in the time since. There is no doubt that COOLNet has revolutionized the way the construction industry currently conducts business. And there is no
Kapty Welding Ltd. joined the ECA this past spring and have already secured two new contracts through COOLNet.
way to discount the many advantages and benefits that COOLNet will continue to bring in the days ahead.
24
Edmonton Construction Association WINTER 2016
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ECA Breaking Ground • WINTER 2016 25
Park Paving Ltd.’s Jared Pitcher says COOLNet is second to none when it comes to the transfer of information and documents.
An idea that grew “I would estimate that close to 100 per cent of all public projects are posted on COOLNet in Alberta today,” says Curtis Griffith, business development manager, COOLNet Alberta. “General contractors, suppliers, trades – everyone has access to project information.” COOLNet Alberta is the partnership of the online plan room of eight construction associations in Alberta. These
include the Calgary Construction Association; the Edmonton Construction Association; the Fort McMurray Construction Association; the Grand Prairie Construction Association; the Lethbridge Construction Association; the Lloydminster Construction Association; the Medicine Hat Construction Association; and the Red Deer Construction Association. According to Griffith, COOLNet has been specifically designed for finding,
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bidding, and tendering construction opportunities. It offers 24/7 access to plans, specifications, addenda and bidders lists. It also allows for document annotations and mark-up tools, and includes email notifications of recently issued projects and addenda. “COOLNet is a significant resource for everyone in the construction industry; whether you’re an owner, architect, engineer, general contractor, trade contractor, supplier, or anywhere in between,” he says. “By posting projects in the online plan room, owners, architects and engineers can securely share their projects and receive the best possible bids from the construction industry.” COOLNet makes it possible for projects of all sizes – and in all stages of development – to be accessible to industry. It also allows for all types of tenders to be post-
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Edmonton Construction Association WINTER 2016
9/11/2015 11:51:46 AM
Top 10 Benefits
ed – including Invitation to Bid, RFQ, RFP, Design-Build, Request for Trades, etc. “Contractors are able to view plans of any posted project in any region if they are a member of one of the eight participating construction associations in Alberta,” says Griffith. “Non-members have access to basic project information, but there is a fee to download documents.” Griffith suggests that current usage of COOLNet is very high. “We’re confident that more than 75 per cent of ECA members have an active COOLNet account that they are using,” he says, adding that somewhere around 3,700 construction projects are posted on COOLNet each year. COOLNet is different from other provincial online plan rooms in that it involves eight local associations – and that it has a leading expert to champion its use. “In the other provinces, each local association is responsible for taking care of its own members in terms of the online plan room,” says Griffith. “In Alberta, the associa-
of COOLNet On Demand 1. Zero cost to ECA members 2. Increased project tendering efficiency = improved profit margins 3. Clean, simple, and private document management 4. Complete and private control of all communications, trades list, and project documents 5. Clear, concise, and consistent communication through Mail Center
6. Audit-Trail Reporting – know who’s looking at your project and when 7. Intention-to-Bid Report – know who’s bidding and who’s not with one click 8. Increased trade and supplier coverage 9. E-Bidding and Bonding 10. Being a part of the procurement hub for commercial construction in Alberta
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tions decided to get together and promote COOLNet throughout the province. The goal is to create a centralized hub for the entire Alberta construction industry.” New capabilities This “centralized hub” is slowly being expanded to include additional capabilities for the Alberta construction industry. COOLNet On Demand, for example, was introduced a year ago. “We have just started to spread the word on this powerful tool, and On Demand is starting to gain some real traction,” says Griffith. “We currently have some great companies using On Demand, such as Delnor Construction, Park Paving, Stuart Olson, Emcee, Seko, Elan, and the list goes on.” On Demand is a powerful online tool for document control and bid management built into the existing COOLNet platform. It differs from COOLNet in that it provides a private plan room where only invited parties can participate. The ECA hopes to see more private tendering take place through COOLNet to help create the centralized hub of all construction activity desired. “COOLNet On Demand is free for all local association members in Alberta,” says Griffith. “It allows bid users to manage and control their project tendering and big management. It allows for general contractors to centralize this process and gives them some powerful reporting tools, as well as access to 3,000 local construction association member trades and suppliers to build out their coverage.”
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Active participants Kapty Welding Ltd. is a relative newcomer to both the ECA and to COOLNet. The company joined the association this past spring in the hopes of securing additional business. “We’ve been working in the oilfields where the projects were fairly plentiful and didn’t require a lot of tendering and bidding,” explains Steve Kapty, president, Kapty Welding. “When the oilfields slowed down, we found that we needed to make up for some of the lost business. That’s part of the reason why I joined the ECA.” And although Kapty says that the networking potential of an ECA membership was alluring, he admits that access to COOLNet was one of the key drivers. “Our membership has already proven beneficial,” he says. “We have already secured two new contracts through COOLNet.” These new jobs include a two-year maintenance contract with the Edmonton Institution, a maximum-security federal institution, and a contract at the Royal Alexandra Hospital in Edmonton. “So far, I would have to say that it’s been a good experience,” notes Kapty. “We will renew our membership in the ECA and use COOLNet as a part of our future work-sourcing efforts.” Park Paving Ltd. is another ECA member that can attest to the benefits of COOLNet, as well as the On Demand module. The company’s core business is building roads – including subgrade preparation, gravel, curb and gutter, sidewalks and asphalt paving. “I use COOLNet every day,” says Jared Pitcher, estimating and business development, Park Paving. “It’s very beneficial as far as the transfer of information and documents. In fact, I would say it’s second to none. It provides a single access point to multifaceted projects, which means I don’t have to go through tons of FTP sites to get the information I need. Plus, it’s very fast, much faster than having to visit multiple FTP sites.” Pitcher also speaks highly of COOLNet On Demand, an easy-to-use service for document control and bid management. “We started using it about a year ago as a way to post some of our projects and to repost them to allow some of our subcontractors access,” he says. “It has been phenomenal, a real benefit to us. We will continue to use this service in the years ahead.”
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The concept behind COOLNet and the two relatively new modules – On Demand and Etegri – is to create a one-stop centralized hub for the Alberta construction industry. The On Demand feature eliminates the need to maintain FTP sites and more importantly eliminates the need for trades and suppliers to manage multiple invitation processes and document download sites. Users are able to easily manage their own private contact lists while adding to this list using the public directory. There is also a complete audit trail that logs all document transmittals and communication. Another relatively new capability offered through COOLNet is Etegri. “This particular module has been designed specifically for owners, like large institutions, architects and engineers,” explains Griffith. “It incorporates the ability to do e-bidding and e-bonding, which is a significant advantage over other systems in the marketplace.”
“Etegri is designed for a different industry segment than On Demand,” adds Griffith. “But together, by being integrated into COOLNet, they complete the construction opportunity cycle and make COOLNet the true hub of construction community we are building.” The concept behind COOLNet and the two relatively new modules – On Demand and Etegri – is to create a one-stop centralized hub for the Alberta construction industry. “Everyone knows that e-bidding is coming,” states Griffith. “If companies are already using On Demand and Etegri, then those companies will be ready for ebidding. All that’s needed are the industry leaders who will pick up the ball and champion the cause.”
All for the price of membership Having free access to leading-edge technology, like COOLNet, is only a small benefit of an ECA membership. The technology, in itself, can lead to more streamlined business processes, greater efficiencies and an improved bottom line. And now, with COOLNet being expanded to include On Demand and Etegri, ECA members can rest assured that they will be well positioned to take advantage of e-bidding when it finally does arrive. “Technology and change can be a difficult conversation in the construction industry,” concludes Griffith. “But having been out in the field and talking to the different segments of the industry, I’d have to say that the reaction to COOLNet and its expanded capabilities is extremely positive. I think the Alberta construction industry is well situated to take advantage of the potential behind this technology – and gain a competitive edge in the process.” V
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Edmonton Construction Association WINTER 2016
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COOLNet by the Numbers By Geoff Lilge
4000+ CONSTRUCTION OPPORTUNITIES AVAILABLE TO YOU ON COOLNET ALBERTA IN 2015
(ALL TIME HIGH )
19963
ECA MEMBER HOURS WERE SPENT ON COOLNET ALBERTA IN JUNE 2015 (MONTHLY PEAK)
THIS AMOUNTS TO
832
= 75 OPPORTUNITIES
DAYS
MONTHLY CONSTRUCTION OPPORTUNITIES ON COOLNET ALBERTA IN 2015 JAN FEB MAR
415
APR MAY JUN JUL AUG
OPPORTUNITIES FOR YOUR COMPANY WERE POSTED IN JUNE ALONE
SEP
200
32
300
Edmonton Construction Association WINTER 2016
400
(MONTHLY PEAK)
81 %
OF ECA MEMBER COMPANIES USE COOLNET REGULARLY
OF THESE ECA MEMBER COMPANIES, THERE ARE
1362
COOLNET POWER USERS IN EDMONTON
33000+ ALBERTANS HAVE USED COOLNET ALBERTA AT LEAST ONCE
77 %
3289
SUB-TRADES ARE CURRENTLY LISTED ON THE COOLNET PUBLIC DIRECTORY FOR PRIME CONTRACTORS TO ENGAGE = 75 SUB-TRADES
HELP US PERFECT YOUR SCOPE OF WORK LISTED, CONTACT YOUR COOLNET PROVIDER, OR CALL THE ECA AT 780.483.1130
OF ECA GENERAL CONTRACTORS HAVE YET TO RECEIVE A COOLNET ON DEMAND DEMO
HELP ME!
HOWEVER, AFTER WATCHING A DEMO, THERE IS A
95%
ADOPTION RATE FOR COOLNET ON DEMAND
NEED AN ON DEMAND DEMO? CALL THE ECA 780.483.1130
52
COOLNET TRAINING SESSIONS HAVE BEEN HELD FOR MEMBERS AT THE ECA IN 2015
YOUR ECA STAFF WILL HELP YOU! CALL THE ECA AT 780.483.1130
ECA Breaking Ground • WINTER 2016 33
Meet the COOLNet Team By Deb Smith
Captain COOLNet: Curtis Griffith
Griffith finds his work on the COOLNet team to be “exciting, eye-opening, and inspiring.
When asked about himself, Curtis Griffith always says he’s a farm kid from Southwestern Manitoba who got lost and ended up in Edmonton. After leaving the family grain farm in Brandon, Griffith attended both the University of Alberta and Mount Royal University. He played university volleyball for five years, with his U of A team winning the national championship in 2005. “After I finished school, I started working with the Edmonton Oilers as a manager in the ticketing and customer service department,” says Griffith. Later, he joined BOXX Modular, a division of Black Diamond Group, focusing on construction rentals in the commercial and industrial markets. Griffith was exposed to the Edmonton Construction Association (ECA) through this new job and was taking part in the Young Builders Group (YBG), an ECA initiative to develop construction leaders of the future. “I found that it was a good group of people doing some great work in the industry. When the opportuni-
34
Edmonton Construction Association WINTER 2016
ty came up to be part of such an altruistic organization and work with all the construction associations across Alberta…I couldn’t say no.” Griffith finds his work on the COOLNet team to be “exciting, eye-opening, and inspiring. We are seeing a paradigm shift with general contractors; they are recognizing that a centralized space for construction opportunities is beneficial to everyone, from the owner to the smallest trade. E-bidding is here, and its adoption by construction owners in Alberta as a best practice is our big goal for 2016.” Aside from work, Griffith is accomplishing other more personal goals in Edmonton. “I am married to the most wonderful woman I’ve ever met, and we have a beautiful one-year-old daughter named Ruby, with number two on the way in November.” But Captain COOLNet hasn’t totally left the farm behind. His favourite hockey team is still the Winnipeg Jets. V
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The COOLNet Team Geoff Lilge, ECA Procurement Director After going through the Industrial Design program at the University of Alberta, Geoff Lilge, along with two classmates, started a company manufacturing metal and wood furniture. “We were able to travel the world selling our line,” Lilge recalls. “It was made right here in Edmonton by our staff of 40…those were good times.” He later went on to design and build several restaurants for his wife and brother-in-law who are both chefs. It was when he met John McNicoll, executive director of the ECA, that Lilge realized something interesting was building within the organization. “I see it even more now after a year and half here,” he says. “We’re actually using COOLNet to develop a procurement community for the construction industry throughout Alberta–and that is a noble cause.” Lilge is proud to be working on the COOLNet team, getting the word out to the Alberta construction industry about how much more the system can do for the members of the ECA. “We’re making great headway and we’re close to the tipping point. My goal is to see every construction opportunity in Alberta, public and private, on COOLNet.” And Lilge’s favourite hockey team? “Oilers all the way!” V
36
Edmonton Construction Association WINTER 2016
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The COOLNet Team Debbie Barker, ECA Plan Room Manager
Her job mostly entails keeping statistics, entering projects onto COOLNet and training people on how to use the new system.
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She is an active member of her local church, singing with her choir at locations all over the city of Edmonton. Add to that three children and two grandchildren, and Debbie Barker is a very busy lady. Her work within the ECA has become another facet of her active and diverse life. “Working in the plan room in 2003, I had to wear many hats,” explains Barker. First there was the security hat, under which she had to make sure everyone entering the plan room had a membership card. “People would try to sneak in by claiming they were with someone already in the plan room or coming in with someone who had a membership card. I learned to get tough.” Technology in those days was a lot different, and oftentimes Barker had to put on her referee hat. “We had two photocopiers, and there were line-ups to use them. A few would copy the plans in 11 x 17 sections then tape them all together. That would make the others upset because they would just need one quick copy.” Then there were those few who tried to steal specs and plans, which sent her back to being security, watching to see what was going out of the room. Sometimes Barker took on the role of therapist, listening as members talked about personal losses and worries, stories of what happened at work that day. Over the course of the past 12 years, Barker’s work has changed considerably. “In 2003 we had 15,046 visits to our plan room; by October of 2015 we have had 56.” Now her job mostly entails keeping statistics, entering projects onto COOLNet and training people on how to use the new system. The “old” physical plan room of the ECA may be, for the most part, a thing of the past, but the commitment of its staff to the success of its members is as strong and capable as ever. V
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Edmonton Construction Association WINTER 2016
COOLNet On Demand
FREE + PRIVATE ONLINE PLAN ROOMS A growing number of member companies are using COOLNet On Demand to set up private plan rooms. We host your tender documents and you control the private access to invite contractors, manufacturers and suppliers to bid on your project. On Demand features branded email communications, full activity auditing and detailed intentions to bid reports.
JOIN THE COOLNet COMMUNITY & CALL FOR A DEMO TODAY For an in-house demonstration of the features and benefits of COOLNet and On Demand, we can help. Call Curtis Griffith at 780.483.1279 or visit www.coolnetalberta.com
“It’s way faster than our old ftp system” - Delnor
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ECA Breaking Ground • WINTER 2016 39
Member Profile: United Construction
United Construction Company Inc. has large-screen TVs installed to review downloaded drawings from COOLNet
On Demand Brings One-Stop Shop Convenience to Coolnet By Lisa Fattori
J
eremy McConnell, president of United Construction Company Inc., remembered the days before COOLNet Alberta, when sourcing new construction opportunities was labourious, inefficient and required a visit to the plan room. “Before COOLNet, we were on the phone a lot, trying to find out what jobs were coming down the pipe,” he says. “You would pick up drawings from the architect or go look at them at the association’s plan room. Then, you would leave your name for subs who would come in to review drawings and who would be interested in bidding on the project. The whole process ate up a lot of man-hours, and was very inefficient, par40
ticularly if you decided that the job wasn’t for you.” The advent of COOLNet Alberta, fifteen years ago, revolutionized the bidding and procurement process for the province’s construction industry by providing contractors with a central online source for accessing publicly tendered projects. As a local construction association initiative, the service is tailored to project owners, generals and sub-trades, with built-in tools and capabilities to provide a one-stop shop environment. Unlike other online procurement sites, COOLNet is a dedicated construction procurement service, providing contractors with access to over 3,000 publicly tendered
Edmonton Construction Association WINTER 2016
projects annually, as well as a public directory with more than 7,000 COOLNet users across Alberta. “We’ve dabbled with MERX and Alberta Purchasing Connection, but find that COOLNet brings in all of those posted projects, along with all other construction jobs,” McConnell says. “We do approximately 40 to 50 tenders a year with COOLNet and have found it to be the best point of access to get publicly traded projects.” In addition to saving travel time by providing a virtual plan room, COOLNet saves contractors thousands of dollars in print costs because documents can be downloaded and viewed on any computer screen. “Every day, we check the COOLNet plan room for tenders that are coming out,” McConnell says. “At United Construction Company, we’ve installed large-screen TVs to review downloaded drawings. We’ve tried to keep up with technology and now have a pretty paperless office. Through COOLNet, we can call up drawings and quickly decide if it’s something we want to bid on.” In early 2014, an on-demand service was integrated with COOLNet Alberta, which significantly expanded functionality beyond the plan room. On Demand enables contractors to tender private and public projects, and manage documents, trades lists and invitation-only projects, all within the COOLNet platform. Several companies, including United Construction Company, are using On Demand and are incorporating all of the services tools to improve efficiencies in the tendering process. “The ECA called, asking about our procurement process, and said that they could show us how we could become more efficient through On Demand,” McConnell says. “We’re avid supporters of the association and COOLNet, so we were happy to meet with them and learn all about the service. The ECA staff was really helpful in getting us set-up. We just had to send over our private trades list for them to program in and then received a bit of training.”
In addition to saving travel time by providing a virtual plan room, COOLNet saves contractors thousands of dollars in print costs because documents can be downloaded and viewed on any computer screen. For invitation-only projects, contractors no longer face the hassles associated with managing FTP sites and drop boxes, as well as additional Internet capacity. In addition, they don’t have to buy bid management and document control software, which can cost anywhere from $3,000 to $10,000 a year. Once contracts have been awarded, contractors can continue to use the system to provide document management, including change orders, revision management and document linking, the ability to run a review process, and general project communication. A project audit trail documents all communications, showing which projects were tendered and who viewed them. The Intention to Bid report enables contractors to track
and manage trade responses early in the tendering process. “The IT savings alone is just one of the benefits of On Demand,” McConnell says. “We have our own IT department, and staff would have to send out bid invitations by email and fax and then follow up to track who responded. Now, with On Demand we don’t have to work to maintain our plan rooms, and we have a better tracking system to see who has seen the tender and accessed documents. You want to make sure that you are well covered and, at a glance, we can see who will be there for tender day. On Demand saves us an enormous amount of man-hours. If we have a private tender, we can post it and still have the control, without having to use in-house resources.” V
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Member Profile: EllisDon
Tailor Your Invitation-Only Projects Through Coolnet By Lisa Fattori
A
s a long-time user of COOLNet Alberta, EllisDon Construction Services in Edmonton knows firsthand the benefits of the online procurement and tendering service, which includes easy access to publicly tendered projects, all at one convenient location. “We use COOLNet exclusively through the ECA in Alberta,” says Cory Raketti, construction manager for EllisDon Construction Services in Edmonton. “Procure-
ment has evolved over the years. We used to go to the ECA plan room, but in the last 10 years, people have been able to access tenders online through COOLNet. The service has become a central hub for construction procurement in the province.” In 2014, EllisDon piloted COOLNet’s newest offering, On Demand, which is a dedicated portal for invitation-only projects. The service gives contractors access to both public and private trades lists and
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Edmonton Construction Association WINTER 2016
Cory Raketti, construction manager for EllisDon Construction Services in Edmonton, uses COOLNet exclusively through the ECA in Alberta. EllisDon also had the chance to pilot COOLNet On Demand in 2014. provides the tools to submit private invitations, to download documents, and to manage documents and communications throughout the life of a project. Through On Demand, EllisDon posted a private invitation to approximately 50 trades for a $26-million project, providing subs and suppliers with a central location to access information and the ability for EllisDon to monitor which companies downloaded the information.
“The software to operate On Demand was great and the support staff was very helpful in getting us set up,” Raketti says. “There was a bit of a learning curve in the beginning, but once you go through the process, it’s pretty straightforward. We’ve been using our own software and FTP sites for years, which can be somewhat confusing for all of our sub-contractors. It’s nice to have a software package all in one central space with easy accessibility to all of the details of a project.” Before On Demand, contractors would have to email or phone trades to invite them to bid, a process that was time consuming and that required manual record keeping. Set-up for the service is easy and involves entering private trades lists, now giving users the option of accessing either public or private lists, which are searchable by name and discipline. For privately tendered projects, contractors can download the bid invitation and all related documents, including drawings. Contractors can see what trades have visited the site and who has viewed and downloaded project documents. Again, access to this information saves a lot of time, because generals then know who to follow up with, to confirm if particular trades are bidding, and it lets contractors know if the trade has seen all addenda. “On Demand incorporates templates, such as the invitation-to-bid function, addenda, and any clarifications on the contracting side,” Raketti says. “It also avoids any discrepancies about who has seen what, and if someone missed a document. One of the service’s best features is that it documents who has downloaded the drawings. We had one situation where a sub-trade said that he hadn’t seen any drawings, but we could see that his office had downloaded the documents, and he had missed this. We were able to resolve the issue very quickly.” On Demand functions include the ability to tailor private invitations, to meet the tendering requirements and stipulations as set up by the project owner. “For this particular project, the owner wanted four trades per scope of work,” Raketti says. “We selected contractors who we
knew had the experience and expertise to do the job. Especially if a project is complex, we need to be able to pre-qualify people. Through On Demand, we sent out the invitation. We still followed up with phone calls to have some feedback from each of the trades. If two people aren’t interested, then you need to find out right away.” While larger organizations may have invested in developing their own in-house document management software, smallto medium-sized companies now have access to the same capabilities through
their membership with the ECA. As part of COOLNet, On Demand is available at no extra cost to association members, and saves on the expense of purchasing software and managing FTP sites. “Like most large companies, we’ve had our own software for a number of years, and are continuously developing new software for construction management,” Raketti says. “On Demand offers a lot of value to smaller companies, giving them a better document management system and improving the tendering process.” V
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ECA Breaking Ground • WINTER 2016 43
Etegri, the Next Step By Deb Smith
Etegri is the next piece in the powerful COOLNet system being offered to members of the Edmonton Construction Association (ECA). Developed by Infinite Source, Etegri integrates with COOLNet Alberta to allow buyers of goods, service, and construction to distribute their tender opportunities through the COOLNet network and receive bid submissions completely through online bidding technology.
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Edmonton Construction Association WINTER 2016
Features of Etegri benefit both sides of the bidding process Document Control and Communication The tendering-bidding process can be complicated, involving complex bid forms, multi-part questions, pricing, scheduling, and more. Completing and submitting these documents in paper format is fraught with the chance of missing some information and/or missing the submission deadline. Through Etegri, bids are submitted through an online bid form, saving on courier and mailing costs, and eliminating the danger of late or lost opportunities. Bids can be revised any time before closing. Bidders receive a confirmation email once their e-bid is submitted; the authenticity of that submission is verified through third-party validation. Large volumes of documents are filed and shared easily with multiple options for printing and downloading all within the one system. With a touch of a button, the buyer/owner can “publish” documents to the COOLNet online plan room, controlling access and distribution automatically. Tender administrators can track activity, see who is looking, what they saw and when; they can engage document receipt notification, reducing delays and claims about missing or incomplete information. Customizable Form Templates Non-compliant bids can cost owners and contractors millions of dollars because of disqualifications, but Etegri virtually eliminates this costly problem. Steve Sulpher, vice-president of Infinite Source
The Edmonton Construction Association is working hard to promote Etegri to the Alberta construction industry explains, “The biggest differentiator between Etegri and other e-bidding systems out there is compliance. Most are simply systems that allow the user to download a form, fill it out and upload it back into the system. We have the owner create the form right on the system in any way they need, allowing them to determine what is mandatory and what isn’t. If the questions aren’t answered, the bid cannot be submitted.” E-Bonding is Here Integrated signed and sealed digital bid bonds are an important component of the Etegri technology. “Within our system, authorized brokers can go in and place their seal and logo on a bond template that is resident within the application. Just as we provide customizable forms, in the Etegri system the content of the bond is controlled; that way the bidder cannot inadvertently submit a performance or other type of bond, thereby disqualifying their bid,” says Sulpher. The insurance industry has been advocating for e-bidding/e-bonding for a long time. Dave Bentley, Western Canadian construction practice leader with Marsh Canada Ltd., has been in the business for almost 20 years and he sees how the system benefits everyone. “I’ve worked with online tendering and Etegri in B.C. It’s very efficient with its own built-in security, and the Surety Association of Canada has put a lot of work into working with owners and industry to develop its use.” He has found that ebonding eliminates the mad rush at the time of tender closing to get documents signed, sealed, and delivered on time, especially when bidding on projects all around the province. Randy Singh of Hub International Phoenix Insurance Brokers in Edmonton has also witnessed the formats for bonding change over time. “We provide bonds and insurance support for contractors when tendering
a bid and a bond is required. I see the process moving forward quickly from physical paperwork to online e-tendering. It’s the wave of the future and it will eventually become the norm. Etegri was first introduced in B.C. and has been in use there for several years. Infinite Source is now promoting its use in partnership with construction asso-
®
ciation clients like COOLNet across the country. The Edmonton Construction Association is working hard to promote Etegri to the Alberta construction industry, envisioning how the use of such technology will save its owners and members time and money, and open up opportunities to succeed in the future. V
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ECA Breaking Ground • WINTER 2016 45
Stories from the Procurement Vault By Emily Pike
The now defunct “plan hanger”. The ECA had four at one time.
The evolution of the procurement process in the construction industry is very much tied in to the evolution of technology in the world. Edmonton’s journey is filled with challenges and triumphs and an adaptive construction association that ensures its members’ needs are met
U
ntil the 1960s, technology wasn’t something you heard about. It was a
was either a telephone call with your bid
paper-based world that operated mostly
amount, or it was a paper submitted with
on human interaction. Jim Gove, past
your bid; but by the ‘70s, the photocopier
president at the Edmonton Construction
was starting to make its way into the busi-
Association from 1996, takes us back.
ness world.”
“There were no faxes in those days. It
“In the 1960s and ‘70s, most public
The 1980s started off swimmingly, but
works jobs (schools, government build-
came to a screeching halt in 1983 when
ings, government-funded projects) were
the federal government introduced the
run through the Alberta Bid Depository,
National Energy Policy. He says that that
which was run by the local construction
added a big tax to what funding was giv-
associations, such as the Edmonton Con-
en, and within about a year, the booming
struction Association.
industry had died. Alberta in particular
46
Edmonton Construction Association WINTER 2016
became a very slow place to work and a lot of companies went broke. Hard times caused a lot of unemployment and forced some people to commit desperate acts, causing serious consequences for the Bid Depository system, as Gove recounts. “During this slow time, there were some unscrupulous contractors who found loopholes in the Bid Depository System and they made a mockery of it, and so it died.” At the same time, the office world started to change through the use of computers. Gord MacPherson, the now-retired former executive vice-president for the Edmonton Construction Association (ECA), shares a slightly less-advanced picture of the office life for the association. “From the time I started at the association in 1980, up until the advent of electronic plan rooms, everything was done by contacts with owners, architects, engineers, and soliciting hard-copy plans and specifications to put in our plan room. When we received procurement opportunities we incorporated them into a paper bulletin, which was mailed to all the members.” MacPherson says technology at the ECA in the 1980s consisted of an offset printing press downstairs at the association office, where they printed the bulletin in-house. They used a 20-bin collator and they hand-stamped the envelopes with plates and then mailed the bulletins to the members. At that time, their administrative staff was supporting them through the use of typewriters. By the 1990s, computers were becoming commonplace in construction offices and even on jobsites. The bigger change at this time was the incorporation of the cellphone into everyday life. “Cellphones became part of the bidding process in that people would go to a tender closing with a blank piece of paper and a cellphone and fill in the numbers that were given to them last minute over the cellphone,” he says. The ECA on the other hand stuck to their paper regime for a little while longer.
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These cubbies, formerly part of the ECA plan room, are now at home in ECA’s full-service print shop.
48
Edmonton Construction Association WINTER 2016
“Even when we started producing the project-list bulletins on computers, we continued mailing hard copies to our members. It took a few years before we commenced electronic distribution of the bulletin to the members,” MacPherson explains. Along the way, the ECA encountered competition from various for-profit entities seeking to replace the ECA and their sister not-for-profit construction associations as the preferred industry choice for procurement opportunities. The ECA resisted these organizations and continues to do so. In the 2000s, the Internet came onto the scene, changing the game once again. Where previously, the architect would draw the drawings, copy them, and give them out for tender, the Internet brought about a time where contractors didn’t even get a hardcopy of a drawing – it would come to them by email and if they wanted a hard copy they would print one themselves. Gove explains how this brought about the use of COOLNet by the ECA. “The construction association picked up on this change in business practice and started COOLNet in Edmonton. It became a communal place where association members could look at drawings via the Internet and then choose to print off drawings, or not, as they saw fit.” Alan Kuysters, vice-president and district manager at PCL Construction, feels the electronic change brought about a much-needed boost for procurement in the construction industry. “The ability to share the tender documents via the electronic medium is the best outcome of new technology around the procurement process. Trades and suppliers have it much easier today to get access to the documents for review and takeoff.” Gove remembers that COOLNet started to take hold with various construction associations across the country, in the hopes that it would capture most of the tendering that was being done. And even though there is always some competition, Kuysters feels that COOLNet is the most popular.
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Edmonton Construction Association WINTER 2016
were.”
Gove sums up living through the changes simply by saying, “I don’t think there’s anything I wish hadn’t changed. You have to live with the times.” From typewriters to computers, from landlines to cellphones, and from printing presses to online access to all procurement documentation, the last 60 years have brought about considerable changes to the procurement process for the construction industry. But it
Plan room cubicles at the ECA. This space has been redeveloped for education and networking events.
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High Quality Versus Low Price Qualifications Based Selection places a firm’s capabilities above its price, raising the bar on project quality and driving down lifecycle costs BY CAITLIN CRAWSHAW
I
n its annual survey released in November 2014, the Association of Consulting Engineering Companies (ACEC) asked its members what they considered the biggest issue facing the industry today. The answer was nearly unanimous: 92 per cent of respondents identified procurement. “You can see that this is an issue – not just in Alberta, but across the country,” says Ken Pilip, CEO and registrar of the Consulting Engineers of Alberta (CEA). Consulting engineers have long been frustrated with the traditional Request for Proposal (RFP) procurement method. In addition to requiring companies to invest resources in a proposal that may not bear fruit, the RFP approach uses selection criteria that emphasize price. “In the last 20 years, we’ve been on a slow incline of price becoming more dominant in the criteria for selecting consulting engineers for a project,” he says. Pilip says that in Alberta, this issue “spiraled out of control” in 2010 when the New West Partnership Trade Agreement (NWPTA) came into effect. The deal was meant to facilitate trade – and professional mobility – between the three western provinces. Unfortunately, it treated engineering more like a commodity than a professional service, which resulted in public sector organizations procuring engineering services in much the same way they would trucks or paperclips. “Instead of being a secondary consideration in the evaluation of a consulting engineer, cost became the most important consideration,” he says. “This is a very dangerous path.” Why RFP doesn’t work When it comes to the RFP-based procurement, there are plenty of variations on the theme, says CEA presi-
52
Edmonton Construction Association WINTER 2016
dent Matt Brassard. Sometimes, public sector organizations use a two-envelope system, in which applicants are screened for qualifications with the first envelope and for price in the second. There’s also the design-bidbuild model, in which an engineer and contractor team up to create a proposal. RFPs can be solicited or unsolicited, and are either open to the marketplace or by invitation only. For large projects, public sector agencies open RFPs to the market in order to ensure there is sufficient competition, as per the legislation concerning government procurement. Regardless of the specific RFP process being used, cost is always at the top of the procurement officers’ selection criteria – and it really shouldn’t be, says Brassard. “They don’t realize that infrastructure lasts 30, 40, 50 years – you can’t make a decision based on price alone,” he argues. It’s important to consider the costs associated with the entire life cycle of a project, not just the engineering costs, which constitute only one or two per cent of total costs. The right consulting engineer can work with a client to define the scope of the project in such a way that the long-term operational and decommissioning costs are lower, saving taxpayers money, says Brassard. But if an engineering firm must offer a barebones proposal in order to earn the contract, there’s no room for longterm thinking. Nor is there room for innovation in this model, argues Sheldon Hudson, vice-president of Al-Terra Engineering Ltd. and former CEA president. “When you’re in a costprohibitive model, you hold back on innovation because you’re not selected on that basis.” It doesn’t make sense for a firm to give away its secrets if it won’t necessarily be chosen for the work. This is why companies are
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hesitant to ask questions of procurement officers while writing their proposals; the questions and answers are public and potentially give a competitor a leg up. Pilip points out that this method of bidding can create an adversarial working relationship between the consulting engineering firm and the public sector client – especially when the project encounters bumps in the road. It isn’t uncommon to hear about high-profile public projects going over-budget or falling behind schedule. “It’s easy to say it’s the engineer’s problem, but I always say it takes more than one person to dance together,” he says. “The bottom line is that it means the project didn’t get started properly and there are unintended consequences.” On top of these concerns, the RFP procurement model is expensive for everyone. Procurement agencies must spend time putting together their RFPs, soliciting responses, and scoring proposals according to specific criteria. From an engineering standpoint, it takes time – and, therefore, money – to put together a carefully considered proposal. CEA vice-president Deon Wilner says his company, ISL Engineering and Land Services Ltd., invests seven to 10 per cent of direct labour costs into proposal work. “If we say $1 million is spent working for a client in terms of salary, we spend $70,000 and $100,000 just procuring that $1 million of work,” he says. “That’s very normal for our industry.” ECA Breaking Ground • WINTER 2016 53
A better way: QBS Thankfully, there’s a much better way to handle the procurement of engineering services. Qualifications Based Selection (QBS) awards contracts on the basis of whether or not and to what degree a firm is qualified to execute a job. Clients put out a Request For Qualifications (RFQ) and consulting engineering companies submit proof of their expertise. This could include personnel, the company’s experience with similar projects, or knowledge of the community where the project is being built. Once the most qualified candidates have been identified and ranked, the client sits down with the top firm to hash out the fine details: the scope, schedule, and costs. “If these negotiations fail, they go on to candidate number two,” says Wilner. “There’s no playing one firm against another.” However, by the time the process reaches this phase, it’s unlikely to fail, he says. “Firms are going to provide an honest price for an honest job at that point.” When projects move forward, they do so on a more positive footing than the traditional model. There’s no push to save pennies now at the cost of long-term project costs, says Wilner. As a result, innovation can be explored early on, potentially saving money down the line. “Not just for clients – but for taxpayers of Alberta, as a whole.” Research confirms this, Pilip says, “It’s been shown in the U.S. that, over the lifespan of a project, you actually save five to 10 per cent of the expenditure you’d get if you used any other method.” Because the design work for a capital project is only about one or two per cent of its long-term cost, using QBS to find the right engineering firm pays off. “If that’s the savings, you get the engineering for nothing.” Championing QBS in Alberta While it’s not yet the industry standard in Canada, QBS is wellestablished in the United States. In 1972 – just a few years be-
fore CEA came into being – the Brooks Act was passed, requiring the federal government to use the QBS process to procure engineering services. Since then, most of the individual states have adopted the method, as well. Beyond North America, QBS is used by the World Bank and the Asian Development Bank. In Alberta, QBS has been gaining traction – it’s been standard procedure at the City of Calgary for three decades. However, it still isn’t commonplace across the province. CEA has been advocating for QBS for many years, but ramped up its efforts after NWPTA came into effect, says Brassard. “We’re working at both the bureaucratic and political level to have it legislated.” By enshrining the concept into law, the organization hopes that the idea will survive the inevitable changes to provincial leadership. Education is an important piece, as well. The CEA has been working with public sector agencies to inform them about the procurement method and encourage them to consider it. At the moment, the CEA is working with the Department of Transportation on a pilot project that would implement QBS for specific projects. “The idea is to see if the department gets good value in it,” Brassard says. “And I think they will.” For Hudson, this is an inevitable change. “I think it’s key for our industry to understand that this will happen,” he says. “It’s not a matter of ‘if’, it’s ‘when’. And, it is going to be a major change in how our industry does business in Alberta.” For one thing, consulting engineers will need to compete a bit differently. Instead of undercutting each other’s rates, they’ll need to hone their specialties and collaborate with other firms with needed qualifications in order to earn contracts. All of this is only a good thing for raising the quality of engineering services in Alberta – something that’s at the heart of what the CEA does. “We want to raise the bar: increase value for citizens and the province, and increase the performance level of our industry,” says Hudson. “I think QBS accomplishes that.” V
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Making the Deal Buying and selling construction can be a messy, complicated business, but one in which Edmonton and Alberta have emerged as leaders. The ECA promises to help further modernize this process. By Benjamin Freeland
W
In the July 2015 issue of Canadian Architect magazine, Elsa Lam writes that Edmonton is rapidly becoming a hotbed of contemporary Canadian architecture, as seen here with a rendering of the ICE District. illustration courtesy of Rogers Place.
56
Edmonton Construction Association WINTER 2016
hen it comes to the buying and selling of construction projects, few jurisdictions do a better job ensuring fairness, transparency, and efficiency in the process than Alberta. Various global studies have concluded that an average 10 to 25 per cent of a public contract’s value may be lost to corruption, amounting to hundreds of billions of dollars worldwide. Even in this country, transparency in construction procurement continues to be a thorny issue, particularly in the province of Quebec, where the ongoing Charbonneau Commission continues to unearth new instances of corruption and malfeasance by contractors, design professionals, bureaucrats, and politicians, and has thus far led to the resignation of three mayors and the arrest of one. But even with the best of oversight in place, construction procurement remains fraught with challenges, owing to the simple fact that construction transactions, unlike most other common purchases, are centered on a complicated product that doesn’t yet exist. Add to that the complexities of the multitude of possible contractual structures, bonding and other bid-securing tools, and the complex assortment of consultants, contractors, subcontractors, and suppliers involved in any large project, and the analogy of a stock exchange trading floor doesn’t even come close. And yet, even as the construction industry as a whole embraces 21st century information technology, procurement by and large is still conducted through the old error-prone 20th century paper-based
submission process. It’s as though the most complicated part of the industry has yet to make the jump into the next century. Change, however, is very much in the offing in the procurement process, both in Alberta and elsewhere. Online submission technologies offer a wide range of new tools that promise far greater efficiency, speed, and accuracy, as well as even greater assurance of transparency. Some of the more sophisticated digital procurement tools can encompass the entire procurement process, from prequalification, document distribution, addenda management, and vendor registration to bid invitations, detailed activity reporting, and notifications. But within the rapidly transforming world of construction procurement, industry standardization still eludes Alberta’s buyers and sellers of construction. Everybody knows digitization of the process is coming—it’s just a matter of what that system will look like. Ahead of the pack Over the past decade, the city of Edmonton has built an impressive track record for designing and building superb structures. From the much-vaunted ICE District development in Edmonton’s downtown to a whole parade of striking new educational and commercial edifices, Edmonton’s skyline has transformed dramatically over the past decade, and with it, its national and international reputation and local pride. “Edmonton is rapidly becoming a hotbed of contemporary Canadian architecture,” writes Elsa Lam in the July 2015 edition of Canadian Architect. “Since former mayor Stephen Mandel’s ‘no more crap’ declaration, the city has pursued a progressive policy for public buildings, recruiting top architects for everything from recreation centres and libraries to park pavilions and municipal waste depots.” City architect Carol Bélanger asserts that much of the city’s success in reinventing its urban aesthetic is due to stellar procurement processes. “From my point of view, we’ve really changed the way we buy and sell con-
Renderings of the ICE District in Edmonton, Canada’s largest mixed-use sports and entertainment district to be built in the heart of Edmonton. illustration courtesy of Rogers Place.
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Edmonton Construction Association WINTER 2016
struction in this city,” he says. “In the past, procurement was by invitation to a select few, but since the ratification of the New West Partnering Trade Agreement between the western provinces, as well as the establishment of the Edmonton Design Review Committee, the process has become much more open and responsive.” A key step in transforming the procurement process, Bélanger explains, has been a new format for request for qualification (RFQ) submission, in which companies are invited to submit qualifications for a bundle of projects (as opposed to a single project), so as to limit the work required by consultants. “Through this process we typically receive 15 to 18 submissions,” he notes. “From that, we’ll draw up a shortlist of five firms for a project, who will receive RFPs.” Bélanger further notes that the city’s new procurement policies include the client in the RFQ stage. “That way they have skin in the game and they understand the breadth of consultants we have to pick from.” The shortlisted five candidates are then scored on their LEED credentials, EOC records, awards and publications, and other key criteria. When it comes to fees, current city policy is for the buyer to state the project budget, based on the Architectural Association fee schedule, with full points awarded to proposals that fall within five per cent either above or below the target. “There are still many purchasers who simply go for the cheapest proposal, but we don’t do that,” Bélanger asserts. “We’re looking for the best value for money, but that doesn’t necessarily mean the cheapest proposal, and if you’re below that five per cent margin you’re docked points. In the end, the fees end up pretty much equal across the board.” While this procurement system is still new, Bélanger argues that the results of it speak for themselves. “We’ve clearly seen a 180-degree turn in the quality of the product in this city,” he says. “And we’ve been getting a lot of national profile for our selection process.
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Online submission technologies offer a wide range of new tools that promise far greater efficiency, speed, and accuracy, as well as even greater assurance of transparency. Whatever changes come by way of e-bid-
firms in B.C., Saskatchewan, Manitoba, and
ding and other innovations, I’m confident
Ontario all adopting the same system (al-
that the processes we’ve put in place will
though each is provincially branded, these
continue to deliver a great product.”
provinces all utilize the same software). Introduced in 2011 as an extension to the
If it ain’t broke . . .
ECA’s revolutionary COOLNet digital plan
With Edmonton’s building procure-
room, this comprehensive procurement
ment practices already ahead of the pack,
platform has already been endorsed by
the transition to a standardized online
eight local construction associations, the
bidding and bonding system would seem
Alberta Construction Association, and
to be a relatively straightforward process.
COOLNet Alberta, as well as a growing
Nevertheless, while municipal and provin-
number of major contractors, and has
cial governments have indicated that this
been successfully employed by clients
is the direction to be taken, it remains very
ranging from SAIT Polytechnic to various
unclear what the resulting system will be.
health authorities to the City of Vancou-
The COOLNet Alberta provincial pro-
ver. As of October 2015, more than twenty
curement system is gaining considerable
Edmonton general contractors have test-
traction in Alberta and elsewhere, with
driven the system and committed to using
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it, with more lining up to do so. Among the many advantages championed by the ECA and other proponents of the system are its public, private, and integrated tendering options, full prequalification features, and its ability to tender all types of construction projects, including P3s, construction management projects, and pre-qualified bids. It also allows construction owners to retain complete control of project tendering and the document management process. In addition, the ECA is promoting an efficient, low-cost (free to all local construction association members, $10/month for nonmembers), and environmentally friendly (by way of reducing plan printing and hard copy proposals) solution that will require minimal change management issues for municipal and provincial government, thanks to COOLNet’s already familiar daily presence, established login ease, and over 15,000 current users. ECA executive director John McNicoll argues that the COOLNet online procurement system is tantamount to a free gift to the province and municipalities: a triedand-true, constantly improving system, with bells and whistles yet unmatched by other platforms. “There are always people in government that want to get involved in a big-systembuild asserting that ‘all our problems’ will be addressed with a massive software solution. Millions can be lost in the change management, system maintenance, and the building of these ‘do it all’ solutions – these are challenges for any government,” says McNicoll, who adds that the National Gun Registry*, America’s Obamacare implementation, and the multiplicity of healthcare software struggles in Alberta have been difficult, to say the least. “Albertans can benefit from the COOLNet solution already utilized by the whole industry
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and we can collaborate with stakeholders for ongoing improvement.” He goes on to say that the cost will be borne by end users who communally contribute to ongoing maintenance and development. “The key is our non-profit position in the middle space – unlike a profit-seeking entity, we can do things that are needed even if they provide no further revenue. This is what makes our solution so sensible; the buy-in of industry and the zero cost to government. Together, we can find solutions to an open and fair bidding process for the ‘common good’ of all Albertans. We have no secret agenda to make the cost of construction higher – our goal is to help the system contribute to fairness, productivity, efficiency, and to decrease the frustrations of fragmentation, litigation and waste that can occur in construction.” McNicoll also states that, “the construction industry has collaborated with the Alberta Government for over 100 years to build solutions together that address our challenges. We continue to innovate and improve procurement with Alberta Infrastructure, who recently asked us to join with them in pursuit of ‘paperless construction procurement’. It’s clear – globally and locally – our industry is moving towards an e-business model where construction can be bought and sold online,”
he says. “The construction industry can lead when it comes to developing online procurement tools, and the COOLNet platform is a textbook example of such leadership. What we don’t want is software companies sitting alone in the driver’s seat for developing our systems. Their pursuit of business viability and profit through ‘getting the sale’ is problematic. In the association space, we are in a grass roots relationship and in constant contact with every user every day. Outsiders are not always as attentive or motivated to keep up with constantly evolving industry needs as we are.” McNicoll cites as an example the issues involved in bonding; “We’ve seen proposed systems that purport to offer ‘online bonding’, but end up falling short of the mark because of a lack of understanding of the intricacies of industry needs,” he asserts. “You say ‘online bonding’ to some and they think you just mean the capacity to send the bond back and forth rather than making it accessible to all, legal document, in the cloud, with verification protocols and approval process speeds, advanced by days. The advanced system of COOLNet can compress the construction cycle and add efficiencies in a weatherbound environment like ours.” He goes on to say, “What we’ve developed is a great product that does compli-
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cated things, but doesn’t confuse people, and we’re getting very encouraging feedback from people who use it. We have also eliminated non-compliant bids – we had one – but that small loophole was closed, and, after thousands of bids since, there has not been a single non-compliant bid – that’s a big deal!” From a transparency standpoint, McNicoll also asserts that the COOLNet system promises to further ensure transparent practices while sparing construction stakeholders a whole raft of potential headaches. “With this system, you get an audit trail that allows you to monitor who’s seen what document, and precisely when,” he explains. “Nothing will bog down a project like legal squabbles (often in court) over whether not the parties involved have seen Document X, and this system removes any doubt. That’s extremely helpful. Nobody wants more litigation. Also, a system like this, administered by an armslength non-profit organization, is a great way of ensuring that inappropriate and illegal practices that we’ve seen happen elsewhere don’t take hold here.” While the COOLNet tendering platform has been adopted as industry standard across Alberta, McNicoll feels its new benefits and power are still being discovered. He is encouraged by the adoption rate and the feedback he’s received from private and public owners, as well as GCs, trades, manufacturers, and suppliers. “Not everyone understands the benefits of COOLNet. All we have is a growing chorus of people saying, ‘We love it!’ It’s clear that a standardized modern system is the way forward, we have a system proven to do the job and is free to use. It’s out there for the taking, and we hope to work with all our stakeholders, owners, consultants, GCs, and trade and manufacturing companies, to help them utilize this tool for the betterment of the industry for us all.” V *Note: The auditor general’s showed costs of the gun registry database components rose from the original estimate of $1M to $60M.
www.edmca.com
Real Progress in Real Time with COOLNet Brano Lapin, chief estimator at Ledcor Construction, utilizes COOLNet for efficiency By Tammy Schuster
W
hen a service is offered in real time, the wait time is zero. Saving
company that builds hundreds of proj-
time is saving money, and, saving time
ects each year throughout North Amer-
and money can open your business up to
ica. Local projects include the award-
more opportunities.
winning Art Gallery of Alberta and the
Brano Lapin appreciates receiving information in real time, which is why he
Brano Lapin, chief estimator at Ledcor Construction, uses COOLNet as a tool for downloading documents for tendering.
Royal Alberta Museum, scheduled to open in 2016.
uses COOLNet Alberta, the online con-
COOLNet has functions for each audi-
struction procurement tool, to manage
ence; whether it’s for a general contrac-
his construction project documents.
tor, project owner, architect, or subcon-
Lapin, a chief estimator at Ledcor Con-
tractor. Lapin says even a supplier can
struction in Edmonton, uses the program
use COOLNet to identify and move on
to organize his projects for tendering, and
an opportunity. A supplier can see which
keep up to date on the progress.
contractors
or
subcontractors
have
“We use COOLNet as a tool for down-
bid on a project and can, in turn, pro-
loading documents for tendering,” says
vide them with a quote for materials or
Lapin. “It provides us with drawings,
equipment needed for that project.
specifications, and timelines.” COOLNet
Once information is uploaded to the
serves as a general information board for
COOLNet site, it is updated in real time.
all members who are interested in bid-
Access to information the moment it’s
ding on projects coming to market. But it
available gives companies like Ledcor,
also updates information as revisions are
and estimators like Lapin, a more effi-
made to a project.
cient solution to managing their project
Lapin says this feature is crucial be-
64
Ledcor is a multi-faceted construction
documents and their overall projects.
cause he gets the most current informa-
He says features like these are what
tion, such as closing extensions, addi-
sets COOLNet apart from a regular FTP
tional drawings, or clarification on certain
site. “There are no problems creating
items. He can use COOLNet’s reporting
and placing your documents on an FTP
feature to see who is interested in a proj-
site,” says Lapin. “But those sites don’t
ect, and who has downloaded documents
allow you to gauge the interest in your
or drawings.
project.”
He can also see which subcontrac-
And rather than a bulletin board
tors or general contractors have been
where information can get stale, Lapin
awarded other projects in the area. “As
says COOLNet gives him the ability to
an estimator for the general contractor, I
serve his clients with more efficiency
am always interested in the updated sub-
and accuracy. “You are always getting
contractors list.”
current information.” V
Edmonton Construction Association WINTER 2016
Alberta Masonry Council “AMC Presidential Award Winner” 2015 Alberta Masonry Design Awards
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w w w. a l b e r t a m a s o n r y c o u n c i l . c a
Member Profile: Williams Engineering
Tools of the Trade Bill Temple, mechanical engineering manager at Williams Engineering in Edmonton, keeps current with COOLNet By Tammy Schuster
P
our coffee, listen to voicemails, and check emails — all part of the morning ritual. For Bill Temple, add logging into
COOLNet Alberta, and the ritual is complete.
they can see which clients have downloaded a request for proposal from the site. COOLNet also keeps members up to date on all projects. If
As a mechanical engineering manager at Williams Engineer-
a contractor reviews documents on COOLNet and has issues
ing Canada Inc. in Edmonton, Temple is involved in business de-
or questions, they can be brought to the designer’s attention
velopment, marketing, design, and client relations. He says he’s
for clarification. An addendum is then created and posted on
been using COOLNet for a number of years. “From a business development point of view, we use COOLNet to see what proposals are coming out from the government or private industry,” says Temple. “From the design team’s perspective, it’s important to keep us current with each project.” Also from a business development perspective, once Temple’s team at Williams Engineering has logged into COOLnet,
COOLNet for members to see. “It’s a good way to keep current without having to chase information down. And it’s good to have all the information in one spot where we can download documents, drawings, proposals, and specifications,” says Temple. Williams Engineering is an engineering firm that provides consulting services in the civil, structural, mechanical, electrical, building science, and environmental disciplines. They have
Follow us: williamsengineering.com 1.800.263.2393
offices throughout northwest Canada, and some of their local projects include the Lois Hole Library and the redevelopment of the historic Varscona Theatre scheduled to reopen in 2016. Based on the projects posted on COOLNet, Temple says they can gauge and properly prepare for potential workload and timelines. “It allows us to be quick off the mark and to know
Innovative and sustainable solutions for
who else is involved in upcoming projects.” COOLNet also gives members exposure to future opportunities. Temple says depending on the season, the firm could be
vibrant communities
introduced to new business every day. He referred to the recent rush of school construction projects tendered by the Alberta government, saying opportunities were posted on COOLNet almost daily over the span of two months. “You can see the trends forming in different industries, and you can actually see which sectors are more active in certain seasons. You can almost anticipate when the government agencies will come out with projects — whether it is a school, hospital, or senior’s lodge. It’s good to be on top of it.” Keeping current with projects, trends, and the marketplace in general, COOLNet has become a valuable instrument in staying competitive in the industry. Meadows Community Recreation Centre Edmonton, Alberta
66
Edmonton Construction Association WINTER 2016
“COOLNet is a tool that is a part of our everyday business. We wouldn’t be as effective without it.” V
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Edmonton Construction Association WINTER 2016
I
n 2013, the board of directors decided at a key strategic planning session that a key goal of the Edmonton Construction Association (ECA) going forward would be to seek to be the “hub of construction excellence”. In light of this goal, and with great discussion around the table, the four pillars were developed, and have since grown. The ECA’s four pillars are Procurement, Education, Networking and Collaboration. At the ECA, we are constantly working to improve our member offerings and serve members within our four pillars. But how does the development of these pillars truly affect your day to day business? In procurement, we understand that construction is not your “hobby”; it’s your business. So, finding work is crucial. The ECA’s electronic plan room, COOLNet Alberta, gives you access to thousands of publicly tendered construction projects every year. We also have many companies utilizing COOLNet On Demand as their private plan room. On Demand is free for all our members and is a strong, common tool for our whole industry as it enables clear and efficient communication of all plans and specs, and will continue to bring great public and private opportunities going forward. Keith Kraayenbrink, B.Eng, an estimator at Monteith Building Group, says that they use COOLNet because of the exposure that it has given them in the market. “Joining the ECA allowed us to have access to subcontractors that we would not have without our membership. The ECA made it easier to connect,” says Kraayenbrink. Stephen Kapty, president of Kapty
Welding, said that COOLNet makes it easy for companies to find jobs. “I used COOLNet to look for jobs when I first joined the ECA, and now I am being invited to private plan rooms to bid on their work. This would not have happened if I wasn’t a member at the Edmonton Construction Association.” When speaking of collaboration, we believe that not everything you build can be seen. Some of those things, like connections, are as important. As a member, your voice is heard at the provincial and national association level, as well as through a variety of industry partners. This collaborative work creates opportunity for all members as we seek to elevate the industry for us all. Looking forward, the ECA will continue to advocate and collaborate on behalf of members with the City, AI, Grant MacEwan, NAIT, the local construction associations, the CCA, ACA, AAA, the CEA, and APEGA. Our third ECA pillar is networking, which is the building of long-term relationships. As a construction business owner, you know that the strongest foundation is a relationship. The ECA provides members with opportunities to meet others in our industry: people you can learn from, and people you want to work with – after all, people buy from people! Our final pillar is education. In construction, methods and strategies are ever changing, and learning is what keeps you competitive. The ECA offers more than 50 courses each year – ranging from basic skills, to accounting, to builders’ liens, to succession planning. In education, we’ll continue to offer the most popular of our introductory and executive-level courses. We’re also expanding our course coverage in critical areas like construction law, estimating, finance, and communication. As Stephen Kapty also states: “When I joined the ECA, I wasn’t aware of all the education courses that were offered. I am quite impressed with the training that we can take.” Finally, let me touch on our Young Builders Group (YBG), which is all about our industry’s future. The YBG promotes the growth and development of con-
struction leaders in the first half of their careers through networking, deepening industry connections, developing industry leadership skills and community activity, with the end goal of strengthening the construction industry in Edmonton for the next generation. In the last two years, the YBG has grown to over 700 members with a multitude of unique and impactful events. To conclude, our focus is to have ECA members globally informed, able to attract and retain a skilled workforce, have
access to industry data, network with the right people, engage in the procurement process and experience greater business success as a result of the association’s collective and focused portfolio of highly valued services and programs. ECA membership is imperative for success within the local construction community as ECA members are better positioned than their competitors to benefit from future industry opportunities. I am always available to chat, and look forward to meeting you all. V
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ECA Breaking Ground • WINTER 2016 69
Emerging Risks in Construction Getting conversation started on integrated project delivery By Don Barr, Lloyd Sadd Insurance Brokers
the monetary responsibilities and risks. With the right team and the right project, IPD can be very beneficial. It’s worth noting what IPD is not: • Design collaborative software • Repackaged design-build • The cheapest method
I
ntegrated project delivery is a common practice in the United States that is just now, slowly, making its way to Canada. Traditionally, the standard project delivery (SPD) method has been the norm. This tried-and-true method for construction will remain a relevant and useful method for years to come—but it has some drawbacks. It’s my job as a risk manager to take an unbiased look at all delivery methods and identify the risks and exposures contractors may have. The main problem with SPD is a heavy top-down approach that leads to downward pressure on contractors and sub-
contractors. It also requires numerous contracts, which can be onerous. This method also breeds lots of change towards the end of the project at a time that is very important for the timely turnover to the owner. These changes also can add considerable costs and expenditure of resources. The integrated project delivery (IPD) method offers a more circular approach that spreads the responsibility among all parties involved. In an IPD project, the owner and contractors work as a team, with the end goal being financial motivation to perform well. Each party is sharing
• The solution for every owner • Utopia What IPD does offer is a lean, collaborative approach that eliminates the traditional silos of SPD. By sharing the financial incentive, all interested parties take a hand in managing risk, which results in increased attention to detail and should mean a good project result. While the system is easy to understand, it can be very difficult to implement. It requires a great deal of resources on the front end to create a successful plan, as well as a high level of commitment from
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Edmonton Construction Association WINTER 2016
Manager Business Development
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all parties involved. If any party is not fully invested, there can be issues. IPD can also be slightly uncomfortable because it requires open, honest operations. All parties must disclose their true costs and margins, often to other corporations they may sometimes bid for work with. Keep in mind, not all projects will be a good fit for IPD, and they require a strong core team. To achieve success at an IPD project, you must: • Have a clear plan • Invest in your team • Focus on process at the front end • Achieve a clear project definition in the pre-design phase
• Overeducate your team
skilled trades. IPD is a method that tries
• Communicate clearly and frequently
to formulize this approach to successful
with all parties involved
projects by creating structure and incen-
If any contractor were to dissect its
tive. It can be hard to know if IPD is right
most successful projects, they would
for one of your projects, so be certain to
find three common elements. One, an
assess your risks and educate yourself—
engaged owner. Two, skilled sub-trades.
these projects only work if you are willing
Three, strong relationships with those
to go all in for the duration. V
ECA Breaking Ground • WINTER 2016 71
Gold Seal Certification Many pathways, one distinction By Jay Summach, Director of Education, Edmonton Construction Association
P
John Hodge (third from left) is recognized as a Gold Seal Intern by Jay Summach, director of education at the ECA; Alan Kuysters, vice-president, PCL Construction and ECA treasurer; and John McNicoll, executive director, ECA.
How efficient is your operation?
rofessional development for construction executives is anything but one-size-fits-all. Some industry roles have well-defined pathways to certification; some are more fluid. Some industry roles have ongoing professional development requirements; some don’t. Some executives ‘come up’ through the trades; others begin their careers in the classroom. Moreover, Edmonton is a vibrant centre for construction education, with each partner institution fielding its own unique menu of certificates, diplomas, and degrees. Amid this profusion of alternatives, expertise can be difficult to judge, let alone compare. The Gold Seal Certification Program
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Edmonton Construction Association WINTER 2016
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ECA Breaking Ground • WINTER 2016 73
Gold Seal and the ECA – 2015 in Review • 80+ applications processed by the ECA in 2015 • 30 Gold Seal applicable courses at the ECA, representing 300+ hours of training • All-time total of 750 Gold Seal Certified and 89 Interns in the Edmonton area • All-time total of 9,100 Gold Seal Certified and 940 Interns across Canada For more information on Gold Seal Certification, or to apply, visit www.goldsealcertification.com.
– jointly administered by the Canadian Construction Association and local partner associations like the ECA – helps the construction industry to identify, at a glance, where its best talent lies. It does so by gathering together work experience, formal education, and continuing education for five professional designations (estimators, superintendents, project managers, owners’ construction managers, and construction safety coordinators) within a single certification: Gold Seal Certified (GSC). But Gold Seal Certification is more than a showcase of past achievement. It represents the seal holder’s commitment to ongoing and continual professional development. Chris Fillmore, vice-president of Fillmore Construction and Gold Seal Certified project manager, puts it this way: “If you’re going to be a project manager or a superintendent your whole life, there are only so many ways to demonstrate that you’re more than just a ‘superintendent’ or a ‘project manager’, because there are many different versions and levels of those things.”
Vanessa Goodall, construction safety coordinator with WorleyParsons, will be writing the Gold Seal CSC exam this October. Certification will fill a gap in Goodall’s professional-development story. “There aren’t enough professional designations for health and safety, especially at the mid-level. You go right from NCSO, which is entry-level training, to something as broad in scope as CRSP. There’s nothing in the middle,” she says. In recent years, Gold Seal has tailored new certifications for particular stages in builders’ careers. The Gold Seal Intern designation (GSI) recognizes and encourages young professionals who are actively pursuing the education and experience required to challenge the GSC exam. John Hodge, general foreman with Robwel Constructors, will qualify to write the GSC superintendent exam in a few years. “I like to keep myself challenged,” Hodge says. “The GSI seal shows that I’m working towards something.” Gold Seal also gives special recognition to advanced-career professionals who have already been certified Gold Seal, and who continue to learn, teach,
lead, and serve the industry. Doug Moller, director with the Cuthbert Smith Group, was recently designated Professional, Gold Seal Certified (P.GSC). In the course of his career, Moller has worn many hats – on both the jobsite and in the boardroom – and has advanced through many professional certifications. For him, the P.GSC designation feels like “coming full circle, back into the construction association.” Moller’s story resonates with the CCA’s vision for a national certification developed by the industry, for the industry. It’s why the ECA remains so committed as a partner in the program. We care for members’ needs at all points in their careers. We offer dozens of courses that can be applied for credit to Gold Seal. We administer Gold Seal exams. And we have the privilege of recognizing GSC recipients. In a dynamic industry like ours – where experience, education, ambition, leadership, and service lie at the heart of meaningful, profitable work – Gold Seal is more relevant than ever. V
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Edmonton Construction Association WINTER 2016
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ECA Breaking Ground • WINTER 2016 75
Take-Offs from Two Angles By Emily Pike
ECA member viewing plans on paper, circa 2012.
E
verybody has preferences in life, and the way to do a take-off in the con-
and specifications that are required to construct a particular project.
struction business is no exception. Not
Brandy Burdeniuk, principal at EcoAm-
surprisingly, the people who have been
mo Sustainable Consulting Inc., has 10 years
doing this for upwards of 40 years and
experience in assisting teams in doing take-
had no choice but to do it on paper when
offs from the perspective of LEED certifica-
they started, have stuck to their guns and
tion. She further explains the things that a
continue to do it that way to this day. On
take-off can be affected by.
the other side of this “old school vs. new
“The material take-off is heavily influ-
school” coin are those who are newer-to-
enced by the building design, specs, en-
the-game and were likely taught to do a
vironmental building goals, local material
take-off on the computer and have stuck
availability, and current market conditions.”
to that path.
Nowadays there is the option of doing
Roger Buksa, mechanical manager
a take-off on the computer, but that hasn’t
at Arpi’s North, has 20 years experience
always been the case. Tom Johnston, chief
doing take-offs and explains that a take-
estimator at Midwest Millwork with 48
off is a quantitative list of materials and
years experience, remembers a time when
equipment taken from a set of drawings
there was only one way to do it.
76
Edmonton Construction Association WINTER 2016
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ECA Breaking Ground • WINTER 2016 77
COOLNet
• • • • •
Source Viewer & Take Off Tools
Alberta
Built in take off tools to assist with estimating Mark up drawings with notes, reminders & more Print with or without your annotations Export take offs to an excel spreadsheet Search for words within specifications and drawings using OCR (Optical Character Recognition)
A screenshot of COOLNet Alberta’s Source Viewer and Takeoff Tools.
“When I started in the industry, there were no computers, fax machines or even telex. Plans were only available to do a take-off at the association or at the office of a friendly contractor. If you were lucky, you may be able to have them overnight. It was messy at times, but it worked, because there was no alternate.” After the paper age came the age of electronics that were helpful, but not necessarily as helpful as you’d like. “With our first estimating system, every single item had to be counted. You would use two electronic pens. One was to count individual fittings and the second had a roller on the end of it to count lengths of pipe,” said Buksa. “Both pens would keep track of the size and type of materials that you needed, and the system would then calculate a complete total of what the costs would be for both the materials and the labour based on factors input into the computer.” 78
Of course technology has evolved over the years and the way you do a take-off online is no exception. “Our latest system is worlds above the one I started with. Take-offs can either be done graphically or non-graphically. The basic difference is that graphically it shows your take-off on the screen as you are doing it (the take-off looks like the drawings you are working from). The non-graphic method just gives you a material list,” he continues. This system also contains all the labour and material factors for a multitude of material types, but it now combines that information into different systems. For instance, gas lines would have different components than underground sanitary piping, so when you do a take-off for gas piping it would also include the welding time, and when you do a take-off for the underground piping it allows for excavation and backfill.” Geoff Lilge, director of corporate development at the ECA, shares a few
Edmonton Construction Association WINTER 2016
COOLNet
facts about their system where users can do their take-offs. “A lot of our members don’t know that COOLNet Alberta has a built-in take-off tool within the plan viewer that any ECA member can use to perform take-offs electronically. All you need is Java installed on your desktop and you’re good to go.” COOLNet is used by eight construction associations across Alberta and is an online plan room for members to access work and opportunities, as an evolution of the “good old days” of physical plan rooms where estimators would gather and do their take-offs in the retro fashion. Opinions about which way to do a take-off is better – paper or electronic – of course vary. Buksa is pro-electronic, and doesn’t see an alternative. “Electronic take-off is the only way to do [it] efficiently, accurately and quickly.” However Burdeniuk believes that it’s possible she’s missing something valu-
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ECA Breaking Ground • WINTER 2016 79
able in not doing a take-off on paper, and would look to find out if she spoke to someone who does it that way. “I’d ask them questions to really get to the root of why they prefer the paper method,” said Burdeniuk. “There could be benefits that we just don’t see because we jump to doing it on the computer.” Ollie Meidinger, project manager/estimator at Alpine Heating Ltd., has 40 years experience in doing take-offs and points out that using a computer doesn’t necessarily mean that the take-off will be error free, something that we inherently expect when we think of comparing something manual to something electronic. “The information a computer provides is only as good as the information that is provided to the computer. Good in, good out. It is much easier to make a mistake when one is rushing through an online take-off, as compared to a more deliberate manual take-off.” Additionally, taking time to do it manually means you get the opportunity to think about the job as a whole. Meidinger continues, “While I’m doing my manual take-off, I’m thinking about the factors that are going to affect my quote: the height the ductwork is installed at, what floor of the building it’s on, is it weekend or after-hours work, what sub trades and suppliers I need to contact, etc. Much of this is missed when doing an online take-off simply because it is quicker and doesn’t allow the person to consider all the factors that are involved as a person is working on the take-off. Later when it is time to close the project and develop your final price, some of these factors may be overlooked.” Like deciding on the best personal travel option between a bicycle and a car, you can only compare the two if you’ve tried both. Burdeniuk admits she has not tried the paper method. “I’ve always been a digital knowledge worker in a paperless office.” Buksa has tried a paper take-off and an electronic one, but prefers the latter. “I have done manual take-offs in the past, and on occasion our estimators still do, but since I have been at Arpi’s North we’ve always used estimating software packages.”
Brandy Burdeniuk, principal at EcoAmmo Sustainable Consulting Inc.
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Edmonton Construction Association WINTER 2016
Meidinger on the other hand does not use computers for his take-offs, explaining that he’s tried and has seen people use an online take-off program, but hasn’t used one himself. People who do take-offs on paper probably aren’t the majority in these technology-filled days, but Buksa believes that a paper take-off process is as rare as a white rhino in his field. “I don’t think there are many people who do take-offs on paper nowadays, as far as mechanical take-offs are concerned anyway.” It seems reasonable to expect that using an electronic method can reduce the amount of time that it takes to do a take-off, and of course reduces the paper/printing costs. This topic is where we find some common ground, as Burdeniuk concisely claims that it always takes less time digitally. “I would also add that it allows for more integrated take-offs, and allows for more knowledge transfer as younger team members are on-boarded.” Meidinger uses a hybrid method where they measure and do take-offs by hand, then enter this information into a computer, which does all the calculations and produces final material takeoff and costs. “I expect this takes a little longer than someone who does an online take-off, but it has its benefits as well.” Buksa believes that there are very few companies that do takeoffs strictly manually on paper, but it takes a lot more time than using an electronic estimating system. “The smaller ones may, but it takes a lot more time than using an electronic estimating system. It would be extremely difficult, labourious and time-consuming to take-off a large project on paper, such as the new Edmonton arena, and be able to complete the take-off in what are usually fairly short tender periods.” And in case you’re wondering how a take-off turns into an estimate, Johnston jokingly reveals what we’ve all suspected. “I still do my take-offs and pricing the same old way… weigh the plans, and using the secret formula, convert into a dollar amount.” The truth shall set you free. V
Roger Buksa, senior project manager at Arpi’s North, has years of experience doing take-offs from the perspective of LEED certification.
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ECA Breaking Ground • WINTER 2016 81
Member Profile: Kasian
Building to Suit
A rendering of the Construction and General Workers Union Local 92 in Edmonton, of which Kasian Architecture Interior Design and Planning Ltd. worked on.
David Mazurick, senior associate at Kasian, customizes with COOLNet By Tammy Schuster
W
hen buying a custom-made suit, a skilled tailor takes his client’s measurements, helps choose the fabric, cuts and sews the material together, and adds the finishing touches like buttons and cuffs. Designing a building can be likened to tailoring a custom suit, according to David Mazurick, a senior associate at Kasian Architecture Interior Design and Planning Ltd. in Edmonton. “We are more tailors than anything else,” he says. “We interpret and assist with your plan based on what we’ve experienced in previous projects with other clients.” Mazurick says helping their clients realize their vision has a number of carefully mapped-out phases. The professionals at Kasian also use COOLNet Alberta, the online construction procurement tool, to help filter and mine through building professionals as part of their process. He says the design phase starts with pre-design where the team determines the needs of their client and relays them into space requirements. Then they move to schematic design, which relates to how the building components fit together. Next, the project moves into design development, including technical specifications, which describe what products are acceptable, and what standards need to be met. Before construction begins, the project goes to tendering and that’s where he utilizes the COOLNet procurement tool. Mazurick says with COOLNet, he is able to communicate to a broader group of contractors and businesses. “It offers information to a company we may not have worked with in the past,” says Mazurick. Depending on the project, COOLNet gives companies the option to either invite specific contractors to bid, or issue a public tender. By
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David Mazurick, senior associate at Kasian, uses COOLNet to help filter and mine through building professionals as part of their process.
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issuing a public tender, more contractors
Kasian, one of the largest architectural firms in Canada, has offices across the country, plus an office in Doha, Qatar. Their local projects include the Robbins Health Learning Centre, the EPCOR Tower, and the Commonwealth Community Recreation Centre.
are exposed to the project and have the chance to bid. This can create more of an opportunity to keep bids competitive. COOLNet allows for access to all regions in the province — over 3,000 contractors in Alberta — and by viewing projects in real time, a company can see which contractors have shown interest in a project. “Getting coverage is good,” says Mazurick. But he says you get what you give, “It comes down to us to specify the ideal qualifications.” Taking the time to tailor his requirements on COOLNet, such as contractor credentials and the types of material required from each sub-trade, Mazurick has more control over the bidding process and that gives him a better overall result. COOLNet gives Mazurick and his team access to their projects at anytime, whether in the office or on the job site. Kasian, one of the largest architec-
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tural firms in Canada, has offices across the country, plus an office in Doha, Qatar. Their local projects include the Robbins Health Learning Centre, the EPCOR Tower, and the Commonwealth Community Recreation Centre. “Edmonton is a fantastic city. It’s a community city and a great place to raise a family,” says Mazurick, a married father of two. He also feels there is a lot of opportunity in the city to get involved with your community, and many people take advantage of that. “You get out what you put into it, and people here put a lot into it.” Mazurick began his career in Edmonton in 2002 after graduating with a master’s degree in architecture from the University of Calgary. His practice at Kasian focuses on commercial and light industrial design, as well as some institutional work. He enjoys taking a client’s idea and
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Broadening Strokes Using COOLNet to expand opportunities By Tammy Schuster
The Painter Decorator Academy offers students hands-on practical painting training in the classroom and project work experience that gives them all of the tools they need for their painting profession! Back row, L to R: Mhaouch, Tessa, Kris, Giselle. Front row, L to R: Kathline and Kristina.
S
eparating yourself from the crowd can be a big undertaking. But by investing in employees and taking pride in the level of service offered, a company in Edmonton is standing out. With the growing demand for commercial painters in Alberta, the professionals at SuperPro Painting Systems International, Inc. believe there is a shortage of skilled painters. And this is something they are trying to change. “Painting is a recession-proof industry,” says Tania Mauro, the marketing director at SuperPro Painting. “Even as the economy fluctuates, the easiest and fastest way 86
to spruce up a space, create curb appeal, and increase the value of a building is to paint it.” Mauro is also a recruiting officer and educator at the painting and decorating program offered by the company. The Painter Decorator Academy offers students hands-on practical training that will have them job-ready after two weeks. To differentiate themselves from other businesses in the marketplace, SuperPro Painting focuses on providing quality service and technique. For more exposure and access to commercial projects, they use COOLNet Alberta.
Edmonton Construction Association WINTER 2016
“In terms of commercial painting, we have increased our sales by almost 70 per cent since we started using COOLNet,” says Mauro. “From a business standpoint, if I were in construction I would be using this tool.” She adds that by using COOLNet they have increased their visibility in the commercial painting industry because they are able to bid on more projects, thus making the SuperPro Painting name more recognizable within the industry. SuperPro Painting is a commercial painting business that started as a oneman operation in 1979. It has since grown into an industry leader offering franchises and partnership opportunities to its employees, and, in 2014, it was the recipient of three BOMA Edmonton Awards. “I use COOLNet on a daily basis,” says Andrea Bagg, the general contract sales coordinator at SuperPro Painting, who adds that she uses the online bidding tool to find new projects and to make connections with general contractors. “Today alone, I have found three projects on COOLNet.” By using COOLNet, Bagg says she has found general contractors she has not yet worked with. Giving the example of a large construction company in Saskatoon whom she found by using COOLNet, Bagg says she got in touch with the general contractor to be included in their bid list. Once she was on their bid list, she received a new project from them one day later. “It’s a great marketing tool. I wish all general contractors were on it, because usually you have to go to each general contractor’s plan room,” says Bagg. “But on COOLNet, all of the drawings and specification needed to prepare a bid are right there on the site.” From applying the first base coat to the final finishing touch-ups, every step taken is with a purpose. “We began the painting and decorating program to create some consistency in the quality of painting in Alberta,” says Mauro. “We use COOLNet because it’s accessible and convenient. It’s a one-stop shop to bid.” V
To differentiate themselves from other businesses in the marketplace, SuperPro Painting focuses on providing quality service and technique.
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Path to Predictability A program for the long-term health of businesses through succession By Erin Rayner
The Predictable Futures team. From left to right: Gregg K. Becker, Jeff Gunther, Terry Bachynski, Linda Robertson, Gordon Wusyk, Jane Trentini, Dr. Ray Seutter Ph.D, Gary Koehli.
E
very business, whether family, private partnership or publically owned, will face succession during its lifecycle: succession of leadership, ownership or both, and possibly simultaneously. More often than not a crisis event—the demise or ill health of the founder, for example—is a trigger for hasty, poorly planned succession with consequences for all involved. In the world of business advisors, it is common knowledge that 70 per cent of family businesses will not make it through the third generation. Why is this unfortunate statistic significant? Eighty-five per cent of all privately owned businesses in Canada are family businesses. These businesses are drivers of the economy, producing 70 per cent of new jobs, 50 per cent of all philanthropy, 60 per cent of tax revenues and 50 per cent of the GDP*. Edmonton-area family business succession specialist Gordon Wusyk designed a unique program to help businesses navigate the rough waters of succession. The program is eight half days and explores tools that Wusyk and his team use to facilitate the succession process for privately held businesses with a special focus on families. Course participants learn about: • The Three Circle model of Business, Ownership and Family • Family Councils • Advisory Boards
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Glenise Harvey and sons, Maclean and Brendan – the next generation for A&H Steel.
• • • •
Wills and Estate Planning Tax Planning Operational Audits Creating a Values Statement for the family as well as the business • Conflict Resolution techniques, and more. Wusyk lived through the unfolding of his own family’s complicated business succession, an event that is part of the inspiration behind his company Predictable Futures: The Business Family Centre and his succession work with hundreds of families across Canada during his 30+ year distinguished career as an author, speaker and business advisor. Wusyk was the oldest of four siblings growing up near Cold Lake, Alberta. The Wusyk family patriarch, Steve Wusyk, had strong entrepreneurial roots with a large herd cow-calf operation, a real estate portfolio and Northland Moving and Storage, an agent for Allied Van Lines. However, being a hard-working farmer and entrepreneur didn’t prepare the Wusyk clan for sudden succession. At 59, Steve Wusyk had a fatal heart attack, which set in motion an unplanned and messy succession. In the years following his father’s passing, Wusyk, his mother and siblings tried to learn enough about the businesses to keep them profitable and in the family. However, the learning curve was steep and the family eventually orchestrated the sale of the ranch and the business assets. Though each of the siblings found their own path and continued to exercise the family’s entrepreneurial spirit, the sale of their family businesses led to fewer peaceful gatherings around the holiday dinner table. Looking back, he shares “If we had been coached by an experienced mentor, we might have become an awesome sibling team.” There is no doubt, if Steve had known the impact of his sudden passing, he would have planned and communicated more proactively. Glenise Harvey of A&H Steel also understands the power and complexities of family business. Her mother Olga Chebuk and stepfather Andy Kotun became partners at A&H Steel 45 years ago. The
Andy and Olga Chebuk, partners and founders at A&H Steel, now engaged in succession process.
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ECA Breaking Ground • WINTER 2016 89
Growing up around the business, Glenise and her stepbrother Craig, learned the industry like many family business successors do, through dinner table conversations, summer jobs and industryrelevant courses.
Andy Kotun with granddaughters Hope and Nora. company, originally founded by Andy and
Growing up around the business, Gle-
his brother Hank, started from humble
nise and her stepbrother Craig, learned
beginnings with four employees in the of-
the industry like many family business
fice, four in the shop and four in the field.
successors do, through dinner table con-
The Edmonton-based reinforcing concrete
versations, summer jobs and industry-
contractor grew and employed several ex-
relevant courses. After a short time in
tended family members over the years. To-
the detailing department (following in
day, the long-term employees have been
her mother’s footsteps), Glenise went her
with the company over 30 years, and their
own way, teaching Grade 2 for 26 years.
team is 200 members strong with work
It wasn’t until 2008 when Andy and
sites in central and northern Alberta, and
Olga were in a serious car accident with
completed jobs across the province.
months of recovery ahead of them, that
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Edmonton Construction Association WINTER 2016
Glenise turned some of her focus back to the business. “If someone had told me five years ago, ‘you’re going to get deeply involved in your family business and you’re really going to be excited about it’, I would’ve said ‘you’ve lost your mind!’ But now I look back and it couldn’t have happened any other way,” says Glenise. Craig, by contrast, has spent most of his career with the company and the two siblings got along well. At one point, Craig wasn’t convinced that continuing the business without Andy and Olga was the right choice for the family or the business. When potential purchasers knocked on
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the door, the succession plans became a priority for the family. After intense conversations, the family decided not to sell the business, but the next steps in succession were still a mystery. Glenise’s two boys Maclean and Brendan are in their early 20s and still exploring career options. Craig’s daughters, Hope and Nora, are in their teens; it is still uncertain if any of the next generation will be interested in taking on the family business. The years passed and Glenise recently took a leave from teaching to participate in leading the business with Craig. In late 2014, the company’s general manager Marvin Olansky shared an email with the siblings about the Pathway to Predictability program, held by the ECA and created by Gord and his team of succession specialists at Predictable Futures. Craig joined Glenise in the program and both
siblings learned a lot about the perils and pitfalls of succession. Glenise and Craig finished the course in June 2015 and immediately started implementing what they learned from Predictable Futures’ proprietary, proven process. Glenise was grateful to hear about some of the tools available to help her family face the difficult conversations around business ownership. “I had no idea about things like a family council and having a third party come in to talk with my kids about what it means to be in a family business. Craig got so excited about the advisory board,” says Glenise, adding, “it takes a little bit of pressure off of us when it comes to making some of these hard decisions or planning for the future. We’re going to have other outside, knowledgeable, experienced people who can help.”
Since the end of the program Gregg Becker, partner in Predictable Futures, has completed A&H’s operational audit, and the leadership team at A&H feels even better prepared to take on the goals of expansion and creating an outstanding culture to be an employer of choice. The process helped the leadership and management teams to be on the same page in establishing culture as the next big priority. For the family, the difficult conversations have just begun and the security in knowing they are not alone in the path they face has relieved some pressure. When the time comes, the family feels confident they will be able to face anything because a plan is in place. Erin Rayner is the founder of ED Marketing & Communications. V * Canadian Federation of Independent Businesses.
If you’re interested in learning more about the Pathways to Predictability program offered through the ECA, or other services offered by Predictable Futures, please contact Jay Summach (jay.summach@edmca.com) or Gordon Wusyk (gordon@predictablefutures.com).
11630 Kingsway, Edmonton, AB T5G 0X5
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DO YOU OWN A FAMILY BUSINESS? We didn’t have a succession plan until it was too late. We ended up in litigation. Now our family hardly speaks to each other. My brother mismanaged the business. The competition out-paced us. We were forced to sell it. We sold at the worst time.
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45 years of passionate and professional coaching for mature Gordon D. Wusyk B.Ed, TEP Founder & CEO business families requiring intelligent succession choices. 〉 Designing the “Pathway to Predictability” 〉 Demystifying the technical and heart issues 〉 Coaching for communication and trust 〉 Implementing the Game Plan Solving Tomorrow’s Predictable Family Business Issues Today!
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nnovative products and practices can be useful when leveraging a company’s value chain. If a company is taking steps to improve their product, service, or practice, this innovation can not only lead to a better outcome for customers, but it can also lead to a better product at a better cost. “We are looking for ways to save our clients’ money, not spend it,” says Shaun Arnault, regional manager, Keller Foundations in Edmonton. “Our in-house engineers offer cost-effective design-build services for safe, high-quality, constructible solutions.” Keller Foundations, a division of Keller Canada, has been a leader in foundation innovation in Canada for over 30 years with nine offices across the country. The company provides piling and ground engineering solutions for commercial, industrial, and infrastructure projects. To help foster innovation, the team at Keller relies on another innovative re-
Operational excellence at all levels.
source to stay on top of their business. Arnault says Keller, being a subcontractor bidding on piling work, uses COOLNet to ensure they have received all information and documents, and to check for all the
general contractors bidding to the owner. “We use it everyday,” he says. “Before we close a tender, we’ll go onto COOLNet to see all the plan holders and make sure we aren’t missing anyone from the list.”
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www.petrocomconstruction.com ECA Breaking Ground • WINTER 2016 93
The entire Edmonton office uses COOLNet. The co-op students utilize it when they are preparing estimates, and the project managers use it to keep updated on current projects.
Pile driving at Fort Hills. Arnault says the entire Edmonton office uses COOLNet. He says the co-op students utilize it when they are preparing estimates, and the project managers use it to keep updated on current projects. “Instead of having to rely on the general contractors, COOLNet notifies us when there are addendums to a project.” With COOLNet, every project document is available online. For over 30 years, Keller has built their relationships with collaboration and trust, and their reputation on engiCFA rig, 11 years and 50,000 piles. Keller, a market leader in innovation.
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Keller’s innovation has given them leverage in the marketplace by passing along savings to their clients. About 10 years ago, the company introduced continuous flight auger (CFA) piling, which resulted in 20-40 per cent savings for their clients. Keller is also increasing applications for cased secant piling (CSP), drilled displacement steel piling (DDSP), earth/subsurface retention, and cut-off wall technologies, as well as ground improvement technologies for soil mixing, subsurface grouting, slope stabilization, rigid inclusions, and stone columns.
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Keller benefits directly from experience
SOLAR FILMS
and innovations in equipment, techniques, and having access to the world’s most respected geo-technical professionals. This, in turn, serves to improve value to their
FROSTED FILMS
clients down the street and around the world. “We call this the best of being local and the best of being global,” says Bernie Roberts, president, Keller Canada. “The best of being big and the best of being small.” V
www.protintinc.ca
SOLAR FILMS
10362-59 Ave., Edmonton, AB T6H 1E6 Bus. 780/448-1624 | Fax: 780/437-3014
A leader in our industry. proudly serving Albertans for over 22 years!
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DIGITAL GRAPHICS
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ECA Breaking Ground • WINTER 2016 95
Advertisers A & B Concrete Pumping.......................................22 Adler Firestopping Ltd............................................47 AGF - C&T.................................................................... 83 Agra Foundations Limited......................................6 Alberta Blue Cross....................................................35 Alberta Construction Safety Association...... 85 Alberta Masonry Council....................................... 65 Alberta Motor Association Registry...................41 Alberta Paramedical Services Ltd..................... 54 Alberta Roadbuilders & Heavy Construction Association..................................16 Alberta Wilbert Sales..............................................73 All Weather Windows............................................ 26 Alliance Excavating Ltd......................................... 44 Allspec Asphalt..........................................................75 An-Mar Concrete Pumping Co. Ltd...................74 Arthur J. Gallagher & Co........................................ 45 Associated Engineering.........................................73
B.A. Robinson Co. Ltd..............................................25 Barricades & Signs.....................................................13 Bdo Canada Llp.......................................................79 Big Bore Hydro-Vac Services................................17 Black & McDonald.......................................................31 Black Diamond Paving Ltd....................................77 Blanchett Neon..........................................................79 Brock White Canada................................................ 14 Builders Floor Centre Ltd...................................... 38 Burnco Rock Products Ltd................................28 C.W. Carry Ltd............................................................ 44 Challenger Geomatics Ltd.....................................72 Curtek Project Solutiosn Inc..................................81 David Morris Fine Cars............................................37 Design 21 FX Lighting Systems............................25 Donalco Western Inc................................................79 EllisDon Construction Services Inc................... 43 Emcee Construction & Management............... 84
Westgate Chevrolet Ltd. Stephen Kennedy Ph: 780-483-3320 Dir: 587-988-9220 Fax: 780-483-8068
Did you know... we also offer the following services: ➪ Auto Tinting and Paint Protection Film ➪ Security Window Film ➪ Solar Control Window Films ➪ Graphic Window Films & Vinyls ➪ Glare Control Window Films ➪ Rollershades (Solar & Decorative) ➪ UV Protection Window Film
www.supertint.com (780) 486-1734 • (800) 661-6616 • 16716 111 Ave. Edmonton, AB 96
Edmonton Construction Association WINTER 2016
Empire Mechanical Contractors Inc.................. 50 Eps Molders, Inc........................................................ 49 Esc Automation....................................................... 29 Ewel.................................................................................75 Gemco Fireplaces ....................................................35 Go Nissan North........................................................... 7 Green For Life Environmental...................42 & 79 Helly Hansen Canada................................................31 HUB International Phoenix Insurance Brokers............................................... 69 Insight Insurance + Risk Management............ 29 Jayson Global Roofing..........................................IFC Jensen Contract Flooring Ltd..............................79 J.S.L. Mechanical Installations Ltd..................... 58 Kehoe Equipment Ltd............................................ 95 Keller Canada..............................................................55 Kerr Interior Systems Ltd.......................................73 Keystone Excavating Ltd....................................... 89 Leader Mechanical Contracting..........................87 Leading Edge Roofing............................................22 Ledcor.............................................................................. 5 Leder Steel.................................................................. 59 Leds.............................................................................. 70 Lehigh Hanson Materials.......................................80 Lloyd Sadd Insurance Brokers..............................71 LMS Reinforcing Steel Group................................21 Loadrite.........................................................................72 Master Paving Alberta Ltd.................................... 30 Merit Contractors Assocation..............................77 Miller Thomson.......................................................... 94 Mor-Con Curbing Inc.............................................. 85 Mytec Framing Specialists.................................... 50 NAIT.................................................................................. 3 Ncv Industrial Inc................................................... IBC Nilex, Inc....................................................................... 68 NorQuest College......................................................23 Northern Road Builders..........................................27 Nu Edge Construction Ltd.....................................77 O‘Hanlon Paving Ltd................................................22 Patcher Energy Management Ltd..................... 70 Pcl Construction Management Inc....................15 Petrocom Construction Ltd................................. 93 Pf Manufacturing Ltd.................................................11 Predictable Futures Inc...........................................92 Pro-Western Mechanical........................................75 Proform Management Inc...........................58 & 95 Protint Inc.................................................................... 95 Pumps & Pressure Inc...............................................51 Rapid Concrete Ltd................................................. 50 Read Jones Christoffersen Ltd............................25 Robert B. Somerville Co. Limited........................47 RS Sterling Fire Protection................................... 58 ServiceMaster Restore of Edmonton........... 83 Splashdown Eaves................................................... 62 Standard General......................................................67 Strathcona Mechanical Limited...........................35 Structural Panels Inc............................................... 48 Superpro Painters.......................................................11 Supertint...................................................................... 96 TC Backhoe & Directional Drilling.....................60 Temple Contracting Inc............................................12 Terrateam Equipment Sales & Rentals.............57 United Decorating.......................................................4 Venture Elevator........................................................74 West Canadian Digital Imaging Inc.................. 30 Westcorp................................................................. OBC Western Weather Protector Ltd..........................47 Westgate Chevrolet Ltd......................................... 96 Williams Engineering Canada............................. 66 World Of Concrete......................................................9
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Edmonton Construction Association WINTER 2016
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.
QUALITY ASSURANCE · NCVI’s Quality System is certified to ASME B31.1 and B31.3 and includes all necessary weld procedures for pipe fabrication / installation. The Quality System and procedures have been approved and registered with: · ABSA (Alberta Boiler Safety Association) · BCSA (British Columbia Safety Authority) · NWT Electrical / Mechanical Safety division of Public Works and Services · CWB Certified to W47.1 - Division 2 · Comprehensive Test and Inspection Plan encompassing all disciplines. SERVICES onsite and offsite pipe fabrication, onsite and offsite structural steel fabrication, onsite mechanical insulation SAFETY NCVI has a COR compliant safety system recognized by the Alberta Construction Safety Association and by the newly formed Northern Construction Safety Association.
Please contact Spruce Grove T: 780 960 1850 F: 780 960 1890 Box 4204, South Ave, Spruce Grove, AB T7X 3B4 Darrell Osmond email: dosmond@ncvindustrial.com Northern Canada Ventures Corp. Parent Company and Shared Services
Ryfan Electric Ltd.
Commercial Electrical Trade Contracting Services
NCV Industrial Inc.
Industrial Construction and Maintenance Services
Nexum Systems Inc.
Structured/Fiber Optic Cabling, Security/Access Control System Services
There is strength in our work
www.ncvindustrial.com
Malmo Townhomes currently under construction, Edmonton
Mettera Hotel on Whyte
College Plaza, Edmonton
Matrix Hotel, Edmonton
For over 35 years, our Westcorp team has been creating great spaces and places for people to live, work, play, shop and meet. We provide a full complement of experience from project inception through to development, construction and property management with the managerial expertise to exceed commitments. Along with a team of highly respected employees, investors, and industry partners, we at Westcorp continue adding to the ever-changing skyline of Western Canada’s major cities while supporting the communities in which we work.
Antares Luxury Suites, Winnipeg
Future London at Heritage towers, Calgary
Future Downtown Kelowna Hotel
Downtown Marina Kelowna
Mettera Hotel lobby
Residential | Commercial | Hotels | Retail | Development | Construction
Westcorp.net 780.431.3300 | mail@westcorp.net | 200, 8215-112 Street, Edmonton, AB