On-Site August 2016

AUGUST 2016

FEDERAL GOVERNMENT

TURN$ ON THE TAP 2016 INFRASTRUCTURE SPENDING IS IN THE PIPELINE

> IN SIDE <

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LOOKING FOR THE WOW FACTOR PG.24

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16

VOLUME 61, NO.5 / AUGUST 2016

COVER STORY 16 2016 INFRASTRUCTURE REPORT A massive increase was made to federal infrastructure funding in Budget 2016. On-Site takes a closer look at what exactly this means for contractors.

DEPARTMENTS 5 Comment More than “okay”

8

News

24

Industry news

14 Construction Stats The latest news on construction activity and employment

28

COLUMNS 42 Software Managing your online reputation

44 Risk Sizing and recovering impact costs

46 Contractors and the Law The importance of bid compliance

45

Index of Advertisers

features 24

28

Despite the boom in GPS technology, construction contractors are cautiously entering the machine control market.

With operational benefits in the 18 to 22 per cent range, OEMs believe it’s only a matter of time before more contractors get onboard.

How to prep your wheel loaders for winter

Construction is on target for Halifax Convention Centre

If you want to use your wheel loaders for removing snow or anything else, you need to prep your machines to handle cold weather conditions. Get tips and insights from the experts.

Slated to begin hosting events in early 2017, the Nova Centre is the province’s largest integrated development project to date.

Looking for the WOW factor

40

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COMMENT

More than “okay”

I

Get the latest construction news!

Follow us on Twitter @OnSiteMag

t seems like an eternity ago now, but back in June I flew to Halifax for the Canadian Construction Association’s Spring Board Meeting. While I was only in town for 3.5 days, it was more than enough time to tour several impressive jobsites, and get a pretty good sense of what’s going on out east.

Fortunate enough to be hosted by an industry friend, my first full day in town started with a helicopter tour of the Municipal Group of Companies’ quarry, asphalt products plant and local construction sites. Dexter, the construction arm of this company specializes in the site work, blasting and excavation of land for both commercial and residential purposes.

Dexter also installs roads and sidewalks, delivering ready-to-build land to developers. West Bedford Developments is just one example of a new community offering up high-quality residential homes, roughly 20 minutes from downtown Halifax.

Of course, with these new homes being built; new schools, sports complexes, seniors’ homes and other public amenities are popping up everywhere.

When I commented on how construction seems to be in good shape in Nova Scotia, Dave Wood, CFO at Dexter Construction cautioned me, and said: “Business is okay. We’re hoping that the federal business infrastructure makes things good.”

“Okay” seemed a bit understated to me after I boarded a tugboat to chug my way out to see work being done on the Macdonald Bridge. A $150-million project, involving the replacement of the bridge’s suspended spans, is made more challenging by the fact that the bridge remains open to traffic from 5:30 am to 7:00 pm everyday.

Each night a section of the bridge is cut out, lowered down to a waiting barge, and replaced with a new bridge deck that is lifted and bolted into place. This is only the second time that the suspended spans of a bridge have been replaced while keeping the bridge open to traffic. (Watch for On-Site’s October issue for more on this project) “Okay” wasn’t exactly the word that came to mind when I met up with EllisDon’s superintendent Reginald Bone for a tour of the one-million-sq.-ft.

Nova Centre. Home to the new Halifax Convention Centre, it also includes a hotel, financial tower and retail space. Walking through the cavernous concrete halls of the Convention Centre, it’s easy to believe that roughly 41,000 cubic metres of concrete was poured. The Centre is being built to LEED Gold certification and will begin hosting events in early 2017. (See project profile on page 40) So, what’s going on out east? The short answer is: A LOT! The modest east-coast folks I spoke with aren’t prone to bragging, but one only has to look at the skyline in and around Halifax to see the cranes, bridges, barges and everything else, are in motion 24/7.

Corinne Lynds, Editor P.S. A huge thank you to all the construction experts that took time out of their busy schedules to proudly share their innovative projects with On-Site.

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www.on-sitemag.com / Fax: 416-510-5140

JIM BARNES / Contributing editor, On-Site On infrastructure: “A massive increase to federal infrastructure funding was made in Budget 2016. Some $60 billion over 10 years has been added in two phases to the current $65 billion in funding, while the current Building Canada Fund is being accelerated. As well, commitments have been made to simplify access to the funds.”

PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com CONTRIBUTING EDITOR | James A. Barnes MEDIA DESIGNER | Brooke Shaw bshaw@annexweb.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@annexbizmedia.com

DAVID BOWCOTT / Senior vice-president, national director large/strategic accounts, construction and infrastructure services, Aon On recovering impact costs: “Designing and building an asset, whether it’s a road or a building, is a complicated task. It requires precise coordination of resources, clarity of communication, detailed review of materials and construction techniques to ensure expected delivery, a keen awareness of schedule and massive amounts of patience.”

ACCOUNT COORDINATOR | Cheryl Fisher (416) 510-5194 CFisher@annexbizmedia.com CIRCULATION MANAGER | Urszula Grzyb 416-442-5600 x3537 ugrzyb@annexbizmedia.com Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com President & CEO Mike Fredericks Established in 1957, On-Site is published

by Annex Business Media 80 Valleybrook Drive, North York, ON M3B 2S9 Publications Mail Agreement No. 40065710

NATE HENDLEY / Freelance writer & author On prepping wheel loaders for winter: “If you want to use your wheel loaders in winter for removing snow or anything else, you need to ensure your machines can handle cold-weather conditions. An obvious way to protect your equipment in wintertime is to park it in a heated facility when not in use.”

JACOB STOLLER / Principal, StollerStrategies On managing online reputation: “’Bad news travels fast’ may be an ancient proverb, but nobody even a few decades ago could have envisioned a world where a story can go viral in a matter of minutes. The influence of online information is growing so rapidly that no sector can afford to ignore the potential risks.”

MATTHEW SWANSON / Borden Ladner Gerbais LLP On the importance of bid compliance: “Tendering is often a complex and hurried process, and sometimes mistakes are made. In the recent case of True Construction Ltd. vs. Kamloops (City), the British Columbia Supreme Court and the Court of Appeal considered a number of issues relating to tendering and the need to comply with the rules set out in a call for tenders. In both instances, the Courts emphasized the importance of bid compliance.”

ISSN: 1910-118X Printed in Canada Circulation email: apotal@annexbizmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 SUBSCRIPTION RATES Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues.

Occasionally, On-Site will mail information on behalf of industryrelated groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above.

Annex Privacy Officer privacy@annexbizmedia.com Tel: 800-668-2374 Content copyright ©2016 by Annex Publishing & Printing Inc may not be reprinted without permission.

On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort.

DISCLAIMER This publication is for informational purposes only The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

MEMBER OF

Canadian Construction Association

6 / AUGUST 2016

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OnSite_

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INDUSTRY NEWS

INDUSTRY>NEWS PM and Alberta Premier announce major infrastructure funding The Prime Minister of Canada, Justin Trudeau, and the Premier of Alberta, Rachel Notley, have announced funding to construct the southwest portion of the Calgary Ring Road.

The new highway will reduce congestion and commute times, so Alberta families can spend less time on the road and more time with their loved ones. The Ring Road will also strengthen the economy and make it easier for people and products to move across the province and the country.

The southwest and west portions are the two remaining sections of the larger Calgary Ring Road, commonly known as Stoney Trail. The completion of the southwest section, anticipated for 2021, will mark the 90 per cent completion mark of Stoney Trail as a whole, leaving only the west Calgary portion.

The Government of Canada remains committed to making significant investments in infrastructure that will improve travel time, strengthen our communities, and help grow the Canadian economy.

“Strategic investments in infrastructure not only create good, well-paying jobs that help the middle class grow and

500 vehicle charging stations to be built across Ontario Ontario is building almost 500 electric vehicle charging stations at more than 250 locations across the province to help reduce greenhouse gas pollution and fight climate change.

The province is working with 24 publicand private-sector partners to create a network of public charging electric vehicle stations in cities, along highways, at workplaces and at various public places across Ontario. This includes more than 200 Level 3 and nearly 300 Level 2 charging stations.

prosper today, they also deliver sustained economic growth that will help build the Canada of tomorrow,” said Justin Trudeau, Prime Minister of Canada. We need our transportation networks to be as modern and efficient as possible. Less congestion means less time spent in traffic, increased connections between our communities, and more support for tourism and for local, national, and international trade.”

“This agreement has been a long time in the making. It has been achieved now by a partnership that is based on a shared commitment to the economy, families and quality of life in the Calgary region and the Tsuut’ina Nation,” said Rachel Notley, Premier of Alberta. “We welcome the federal contribution to this important transportation project. Alberta values the partnership that is achieving the benefits of the Calgary Ring Road, and its potential to realize future opportunities for Albertans,” The Government of Canada will contribute up to $582.9 million to this project through the 2014 New Building Canada Plan – National Infrastructure Component, with the Province of Alberta contributing the balance of the funding. And, the project will be delivered using a Design/Finance/Build/Operate procurement approach, in which the

The entire network will be in service by March 31, 2017.

The province’s $20-million investment under Ontario’s Green Investment Fund will

contractor will design, build, operate and maintain the asset on behalf of the Government of Alberta for the contract period of 30 years. Three consortia were considered and Mountain View Partners was selected as the preferred proponent, with a commercial close date anticipated in September 2016.

expand charging infrastructure across the province and help address “range anxiety,” a common concern of consumers regarding the distance electric vehicles can travel compared to traditional vehicles. Building a more robust network of public chargers across Ontario allows electric vehicle owners to plan longer trips knowing that charging stations are as readily available as gas stations. With the new network of stations, electric vehicle drivers will be able to travel confidently from Windsor to Ottawa or from Toronto to North Bay and within and around major urban centres.

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EllisDon selected for Seneca College’s King Campus Expansion EllisDon has been selected as the preferred proponent to design, build and finance Seneca College’s King Campus Expansion.

Infrastructure Ontario (IO) and Seneca selected EllisDon after extensive evaluations following an open, fair and competitive request-for-proposals process that began in August 2015.

“With today’s announcement, we move one important step closer to the Seneca College King Campus expansion. Our government is proud to support this project, which will bring innovative programs and additional student services to King City and increase access to high-quality post-secondary education in Ontario,” said Deb Matthews, Minister of Advanced Education and Skills Development.

The EllisDon Corporation team includes: • Developer: EllisDon Corporation • Constructor: EllisDon Design Build Inc.

• •

Architect: MJM Architects & Montgomery Sisam Architects Inc. Financial Advisor: EllisDon Capital Inc.

Key project highlights include: • approximately 25 new classrooms, computer labs, specialty labs for training health-care practitioners, a library, learning commons and student study space

•

a new student area with a multipurpose athletic and recreation space, gymnasium, fitness centre, informal study areas and event spaces, partially funded by the Seneca Student Federation and the Student Athletic Association The project is targeting LEED Gold in the Canada Green Building Council’s Leadership in Energy and Environment Design (LEED®) rating system.

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INDUSTRY NEWS

1st anniversary of construction on Champlain Bridge The Honourable Amarjeet Sohi, Minister of Infrastructure and Communities, was at the New Champlain Bridge construction site’s west jetty location on July 11 to mark the first anniversary of the start of work on this iconic structure, which will transform Montreal’s urban landscape and add a unique landmark to the city.

In addition to ensuring the safety of users, the new Champlain Bridge Corridor project will create thousands of jobs in Greater Montreal and foster economic growth across Canada by improving connections across road systems and ensuring the continuous and safe flow of people and goods.

“What strikes me every time I visit this project is the human ingenuity at work. This new bridge will have a significant impact on the lives of Montrealers and be a new point of pride for their city. In addition to ensuring the safety of users from Montreal and elsewhere, it will create thousands of jobs and foster economic growth across Canada,” said Sohi.

Signature on the Saint Lawrence, the project’s private partner, began construction on the project just over one year ago. It has already begun the placement in the river of the first permanent footings of the new Champlain Bridge. This is a delicate and important step that is key to the project’s success.

With the project proceeding on schedule, the Government of Canada is on track to open the new toll-free Champlain Bridge by December 2018.

Paul Douglas named to Alberta’s Most Influential List The PCL family of companies’ president and CEO Paul Douglas has once again been named to Alberta Venture magazine’s list of 50 Most Influential People.

Alberta Venture editors take recommendations from the local business community to create the list of people who positively impact Alberta politically, economically, or culturally. The annual list is made up of a diverse group of individuals who are committed to advancing Alberta.

“I am honoured to receive this recognition for the second year in a row from Alberta’s business community,” says Douglas. “I believe being on this list has a lot to do with the hard work and dedication that PCL employees put in every day while making their communities better places to live and work.”

Douglas is heavily involved in Edmonton and the surrounding area by way of supporting a number of local charities including the United Way, and membership on the Board of Directors of the Canadian Council of Chief Executives, and as a representative on the Edmonton Airport’s Business Advisory Committee.

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INDUSTRY NEWS Groundbreaking ceremony marks start of construction at waste management facility Port Hope Area Initiative (PHAI) and its governmental and corporate partners officially broke ground last month at the site of the Port Hope Project long-term, low-level radioactive waste management facility.

Honoured guests included Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources and Member of Parliament for Northumberland – Peterborough South, and Bob Sanderson, Mayor of the Municipality of Port Hope. They joined representatives of Canadian Nuclear Laboratories, Atomic Energy of Canada Limited (AECL) and contractor ECC/Quantum Murray in a groundbreaking ceremony.

This marked the start of construction of the first cell of the engineered aboveground mound where historic low-level radioactive waste will be safely stored for hundreds of years.

“This work is another significant milestone for the project and the community,” said Craig Hebert, PHAI general manager.

“Once construction of the first cell is complete, the site will be ready to start receiving waste and the cleanup in Port Hope can begin.”

The Port Hope Project represents Canada’s largest environmental cleanup, involving the removal of approximately 1.2 million cubic metres of historic low-level radioactive waste from various sites within the municipality and construction of the aboveground mound where the waste will be safely stored for the long-term. The PHAI Management Office, led by Canadian Nuclear Laboratories, is implementing the project on behalf of Atomic Energy of Canada Limited, a federal Crown corporation.

“This is an exciting period and a true sign of the progress being made to clean up historic low-level radioactive waste in the community,” said Shannon Quinn,

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vice-president of Science and Technology, AECL. “It is also very important to Atomic Energy of Canada Limited in its role in upholding the Government of Canada’s commitment to remediate the affected lands.”

The groundbreaking ceremony marked the start of work on the first of four cells in the highly engineered mound that has been designed to safely isolate the waste by encasing it with multi-layer base liner and surface cap systems. The work will be undertaken by ECC/Quantum Murray LP of Toronto, a landfill construction and environmental remediation company.

Paul Hunt, ECC/Quantum Murray director of Environmental Services, said that an experienced workforce has been assembled to build the first cell. “Our strong and capable team is excited to be a part of this project. We appreciate the opportunity to work with the Port Hope Area Initiative and look forward to executing the work safely and successfully while meeting the expectations of the community,” said Hunt.

Construction of the first cell will be completed in late 2017, with placement of waste from within the community expected to begin in 2018.

ECC/Quantum Murray, which has already successfully completed other aspects of the PHAI, will adhere to stringent health and safety plans, required by the PHAI under its Canadian Nuclear Safety Commission license for the project.

Contractor requirements for the protection of the public, workers and the environment include dust management, occupational health and safety, radiation protection and traffic management.

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CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry

thousands

INVESTMENT IN NON-RESIDENTIAL BUILDING CONSTRUCTION UP IN Q2 Investment in non-residential building construction increased 0.2 per cent to $12.6 billion in the second quarter, following five consecutive quarterly declines. Nationally, the growth was a result of higher spending on the construction of commercial buildings and, to a lesser extent, industrial buildings. Overall, investment was up in four provinces, with Ontario registering the largest gain, followed by British Columbia and Manitoba. The largest declines occurred in Alberta and Quebec. billions of dollars

Source(s): Statistics Canada

CONSTRUCTION EMPLOYMENT RATE HOLDS STEADY Employment was unchanged in June. The unemployment rate declined 0.1 percentage points to 6.8 per cent, as the number of people searching for work edged down. Fewer people worked in construction, manufacturing, and the “other services” industry. Following a gain in May, employment in construction was down 29,000 in June. Before adjusting for seasonal factors, the number of people working in this industry rose from May to June. However, the increase was smaller than usual, resulting in a seasonally-adjusted decrease. On a year-over-year basis, employment in construction was little changed.

Source(s): Statistics Canada

billions of dollars

NON-RESIDENTIAL BUILDING PERMITS DOWN The value of commercial building permits was down 15.6 per cent to $1.2 billion in May, a third consecutive monthly decline. The drop was largely the result of lower construction intentions for office buildings, recreational facilities and distribution warehouses.

Decreases were reported in five provinces, led

by Quebec, Ontario and Manitoba.

Source(s): Statistics Canada

14 / AUGUST 2016

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2016 Infrastructure Report

MA$$IVE FUNDING

SLATED FOR INFRASTRUCTURE 2016 infrastructure spending is in the pipeline

BY JIM BARNES

A massive increase to federal infrastructure funding was made in Budget 2016. Some $60 billion over 10 years has been added in two phases to the current $65 billion in funding, while the current Building Canada Fund is being accelerated. As well, commitments have been made to simplify access to the funds. So, what does it all mean to contractors?

ECONOMIC ISSUES Stimulus and improving the efficiency of the Canadian economy are stated goals of Budget 2016, along with green construction and social concerns.

The Bank of Canada has predicted that Canadian GDP will slow by one per cent in the second quarter.

The sharp decline in oil prices, the Alberta wildfires and shaky consumer

confidence have been major drags on the economy.

The programs covered under Budget 2016 should raise the level of real GDP by 0.5 per cent in the first year and 1.0 per cent the following year, according to the Department of Finance.

The elephant in the room is debt.

The Parliamentary Budget Office has questioned the sustainability of

provincial debt, now at 32.5 per cent of GDP. That debt may hobble provincial spending on infrastructure. “We’ve been told by some of our provincial associations that some of the provinces don’t have the money [to implement significant new infrastructure spending],” says Michael Atkinson, president, Canadian Construction Association, Ottawa. “That’s particu-

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E larly true for those provinces whose budgets depend on the price of oil.”

The outlook on federal debt is rosier and the net federal debt is manageable, according to the Parliamentary Building Office.

Despite the deficits, the budget has won international admiration. Angel Gurría, Secretary-General, Organisation for Economic Co-operation and Development, called Canada a “good example of a country taking the right measures to break out of the low-growth trap.” Citing Canada’s monetary policy and willingness to take advantage of low interest rates for public investment, he said “Canada is an example to other advanced countries.”

CURRENT PROGRAMS The Building Canada Plan dates back to 2007, and the New Building Canada Plan has been in force for two years now. On-Site has reported regularly on these investments.

“This budget and the new, stronger working relationship between the federal government and municipalities really marks a new way of getting things done for Canadians.”

However, much of the funding remains unallocated.

The government wants to deliver these investments, involving some $8.7 billion, as quickly as possible and ideally within two years. “Two years from now, there will be no uncommitted money,” says Atkinson.

“If it’s not allocated within the next few years, then it’s going into the Gas Tax Fund.”

Typical projects will be “ready to go” – repair and maintenance of municipal infrastructure, improving roads, bridges, transit, clean water, and wastewater facilities.

On top of that, some $3 billion each year is coming in dedicated funding for municipal infrastructure projects through the current Gas Tax Fund and the Incremental Goods and Services Tax Rebate for Municipalities.

The basic Gas Tax Fund provides $2

billion a year as a permanent source of infrastructure funding for municipalities. It is indexed at two per cent per year, which means that it will grow by $1.8 billion over the next decade.

The funds go to the provinces and territories twice a year, who in turn pass it on to the municipalities. The municipalities have great flexibility in their choice of projects.

KICK-OFF Phase 1, the kick-off of the new funding, is underway. More than $11.8 billion is budgeted over five years, with other infraon-sitemag.com / 17

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2016 Infrastructure Report PHASE 1 INFRASTRUCTURE INVESTMENT ($millions)*

16-17

17-18

18-19

19-20

20-21

Total

852

1,696

852

-

-

3,400

Green Infrastructure Projects Aligned with the Pan-Canadian Framework on Clean Growth and Climate Change

19

59

9

9

9

105

Adaptation and Climate Resilient Infrastructure

24

70

90

138

91

413

Supporting Municipalities: Climate Change and Green Projects

75

125

-

-

-

200

Community Capacity for Asset Management

50

-

-

-

-

50

Clean Water and Wastewater Fund

501

959

501

39

-

2,000

Water, Wastewater and Waste Management Infrastructure for First Nations Communities

311

418

498

504

511

2,243

Subtotal - Green Infrastructure

980

1,631

1,098

690

611

5,010

980

501

-

-

-

1,481

-

400

-

-

-

400

Cultural and Recreational

171

171

-

-

-

342

Social Infrastructure Investments in First Nations Communities

503

607

53

36

20

1,219

Subtotal - Social Infrastructure

1,653

1,679

53

36

20

3,442

Phase 1 of Canada’s New Infrastructure Plan - Total Announcements

3,485

5,006

2,003

726

631

11,852

Strategic Infrastructure Investments at Post-Secondary Institutions

500

1,250

250

-

-

2,000

Revitalizing Federal Public Infrastructure Across Canada (cash basis)

920

1,786

269

197

191

3,363

6

81

253

108

52

500

Public Transit - Phase 1 Public Transit Infrastructure Fund

Green Infrastructure - Phase 1

Social Infrastructure - Phase 1 Affordable Housing Supporting Early Learning and Child Care

Additional Infrastructure Investments in Budget 2016

Investments in Rural Broadband structure-related spending also planned.

See Table A for spending projections.

The agreements under Phase One will differ from those of the original New Building Canada Plan. In cases where relevant projects are already underway, some agreements may be made retroactive to April 1. In effect, “for transit, wastewater and whitewater treatment projects, if you have a project that you have already started or want to start right away to take advantage

of the summer construction season, you can do so,” says Atkinson.

Another plus is that the federal funding will cover the costs of design and planning for future expansion of those types of projects. “Previously, that was not covered,” says Atkinson.

As well the federal component for projects involving municipalities will be 50 per cent, instead of the 33.3 per cent under the previous program.

Phase 2 will be announced next year. It will take a longer-term look at investment.

Major government infrastructure concerns will be highlighted, grouped under the general headings of green, social and transit, according to Atkinson. “They’re talking about spending $12 billion over the next five years.”

A lot of emphasis is being put on consultation, especially with the municipalities and the industry. Consultation will

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2016 Infrastructure Report

likely begin next year, beginning with eligibility requirements, according to Atkinson.

“It looks like there’s going to be quite a consultation process, with the provinces, territories, municipalities and indigenous communities. It’s going to be pretty significant,” says Jim Dougan, president, Eastern Canadian Buildings and Civil Infrastructure, PCL. Until the consultations are held, details will be scarce. “Until we know more, it’s hard to comment on it.”

CUTTING RED TAPE For those accustomed to governmental delay and red tape, attitudes expressed about the funding agreements are refreshing.

Amarjeet Sohi, Minister of Infrastructure and Communities Infrastructure, said his government wants to allocate the unspent infrastructure money quickly. “I don’t want to lose another construction season,” he said. “We need to have as few strings attached to the funding [as possible], keeping in mind the outcomes we want to achieve.” As of this writing, Sohi has signed off on nearly 164 projects since November of 2015.

Are the floodgates opening? “I don’t believe that there is going to be any capacity problem in the industry. A lot of these projects are smaller, relatively speaking. In some parts of the country, things

“We need to have as few strings attached to the funding [as possible], keeping in mind the outcomes we want to achieve.”

are pretty dry,” says Atkinson.

Dougan has concerns about the accelerated time frame. Time is needed “so we can respond, and get people put to work. We’re halfway through this year’s construction season. For 2017, we’d like to see a good, strong start so it can be fully utilized in that fiscal period.”

Another simplification was eliminating the requirement for P3 screening. “They said it was adding to the complexity of getting things approved. The provinces are going to be doing that [screening] anyway,” says Atkinson. “They don’t want to dictate to the provinces. They just assume that is part of the logical process.”

“I think that’s positive – cutting down on the process. Some of the thresholds may have been too low. I just hope P3s don’t get eliminated from the process, because it is a good delivery model from the taxpayers’ perspective,” says Dougan.

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been transferred to the Minister of Infrastructure and Communities from the Minister of Finance.

NEW AGREEMENTS “Essentially, you have three framework agreements now. One is for the gas tax. Two, you have agreements for the Building Canada Plan, one and two. Three, there’s a framework agreement out that looks like it’s only for Phase I. I’m not sure whether separate agreements will be required for Phase 2... We are being told that Phase 2 will have different criteria. That’s why there is going to be a consultation process,” says Atkinson.

New Bilateral Agreements are needed for both the Public Transit Infrastructure Fund (funding for which is based on potential ridership) and the Clean Water and Wastewater Funds in Phase 1.

As of this writing, agreements have been signed with: B.C. (PTIF)

INFRASTRUCTURE INSTRUCTIONS The best summary of the federal government’s priorities in infrastructure are found in a letter Prime Minister Trudeau wrote in November to Amarjeet Sohi, Minister of Infrastructure and Communities.

Among other measures, the letter called for: Immediate, increased investments in infrastructure.

Long-term, predictable funding supporting provincial, territorial and municipal priorities.

Improved access to, and governance of, existing infrastructure programs.

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Particular emphasis went to: Public transit.

Social infrastructure.

Green infrastructure, including local water and wastewater facilities.

Changes to the Building Canada Fund, making it more transparent and speeding up approval processes.

More focus in the Building Canada Fund on strategic and trade infrastructure, including roads, bridges, transportation corridors, ports, and border gateways.

Transferring unspent infrastructure funds to municipalities through a temporary top-up of the Gas Tax Fund.

The letter also called for the establishment of the Canada Infrastructure Bank, which would: Provide low-cost financing (including loan guarantees) for municipal infrastructure projects in priority investment areas.

Work with other levels of government and the financial community to enable municipalities to finance infrastructure using the federal government’s strong credit rating.

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2016 Infrastructure Report Newfoundland and Labrador (PTIF and CWWF), Quebec (PTIF and CWWF) and Yukon (PTIF and CWWF). “The rest should follow pretty quickly,” notes Atkinson.

Atkinson voices some concern about timing. Say a provincial government has a major project that can’t be completed in three years, meaning it doesn’t fit into Phase 1. Will they apply for the current NBCP funding at 33.3 per cent federal participation?

Projects under the new program are being funded at 50 per cent when a municipality is involved. “Some of the provinces may be sitting back on major projects that they feel will qualify under the new plan, to get the additional dollars.”

Caveats aside, stakeholders in construction applaud the funding.

“This budget and the new, stronger working relationship between the federal government and municipalities really marks a new way of getting things done for Canadians,” said Don Iveson, chair of the Big City Mayors’

Caucus, under the Federation of Canadian Municipalities.

“It’s all a positive story. It’s like anything, it’s how it’s rolled out. Communication is so important for everybody – just so we understand it,” says Dougan.

Jim Barnes is a contributing editor to On-Site.

Send comments to editor@on-sitemag.com.

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COMPETITIVE CONCERNS Canadian Commissioner of Competition John Pecman has publicly expressed concerns about the speed with which decisions are being made this year on infrastructure.

“You have to be careful when you want to spend money in that timeframe,” notes Stéphane Hould, deputy commissioner for the Cartels Directorate, Competition Bureau, Ottawa. There is additional potential for crimes such as bidrigging.

Hould says he sometimes speaks to industry stakeholders who are not really aware that this sort of collusion is criminal behaviour.

They tell him “That’s just the way we do business.” He notes that the penalties can be severe, including fines and prison sentences of up to 14 years.

“That’s what we’re trying to break up – that culture,” he says.

“People might not realize that it’s price-fixing, or market allocation, or bid-rigging… It’s serious. It can undermine and compromise competition.”

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A major focus is outreach, educating the procurement community and industry associations about these issues. “At the end of the day, if we can make people more aware, then we don’t have to enforce as much,” he says.

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Machine Control

T

he uptake of GPS technology in machine controls has skyrocketed in recent years. According to an advisory board to the U.S. government, the adoption rate of GPS among machine control industries overall has been driven largely by costs and benefits. Between 2005 and 2010 the unit price for GPS technology dropped to roughly US$13,000 from US$20,000, while manufacturers’ revenues rose from US$320 million to US$551 million over the same period.

In other words, the costs of adopting GPS technology have dropped, in turn driving up manufacturers’ sales and revenues.

What’s puzzling is that the same report showed that based on an 8 to 12 per cent share of construction for earthmoving operations, GPS had a modest adoption rate of 20 to 25 per cent among companies with sales more than $250 million—this despite an 18 to 22 per cent benefit to those companies’ operations.

Some manufacturers believe contractors have been slow to adopt GPS due to a lack of understanding surrounding the technology. Others think those numbers can be improved through innovations and patience. Still others say we’re missing the overall picture about what role GPS can legitimately play and how other technologies will fill that out.

THE ELUSIVE “WOW” FACTOR

Despite the boom in GPS technology, contractors are cautiously entering the market

BY DAVID GODKIN

Geomax’s regional manager and machine control manager Bryan Garner pulls no punches: Have GPS machine controls eliminated manual grade checking altogether? Not on your life, he says. How about GPS’s other boast: reducing the six or seven passes needed to get to grade two or three? Not much new there, he replies. Still need assistance working to really fine grade tolerances like those on airport runaways? “Yup. GPS is still about the same; you can’t get to really close tolerances without total station robotics.”

Peter Robson, Komatsu’s director of intelligent machine controls, agrees with Garner on manual grade checking. “As the saying goes: ‘You can stake less, but you won’t become stakeless.’” Robson offers this caveat, however: success, using GPS will increase with increased operator efficiency. “If you’ve cut to your grade, for example, and the machine says you’re on target and you’re running over it again you need to ask yourself why? You need to know when you’re done.”

Evidence Komatsu has been learning its own lessons became clear in January when it drew contractors’ attention to its placement of GPS controls on its second generation D61EXi/PXi-24

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The GeoMaxEzDig excavator guidance system boasts easy callibration and equipment operation.

Intelligent Machine Control crawler dozer. It senses blade load from on board GPS sensors instead of on the blade, and it has eliminated the cables and connections operators have to climb over at the beginning and end of their work day. This saves wear and tear on the cables and the machine itself, reducing the potential for downtime.

An even bigger deal, says Robson, came in May when Komatsu scaled up its intelligent machine control technology to make the PC490LCi-11 the world’s largest 3D semi-automatic construction-sized excavator. “Previously all you could put on an excavator was guidance,” says Robson. “It slowed people down because they always had to pay attention to the screen and wait for sensors to stabilize.” When the bucket on a 50 tonne PC490LCi-11 reaches the target surface, automation kicks in to limit over excavation, explains Robson. “This will allow you to go straight to grade.”

IT’S ALWAYS HOW YOU DO A THING THAT MATTERS In 2013 the sales engineering manager for Trimble Navigation Lamar Hester insisted the uptake of GPS would increase in the next five to six years. Today, we’re still on schedule Jeff Drake says. Trimble’s segment manager for Machine Control Systems points to an albeit modest increase in the adoption rate for asphalt pavers and rollers, for example, but also excavators,

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The system is designed to let operators work confidently in rough or fine grade applications, slope conditions, and in restricted sight environments without the visual obstruction of masts or risks to hanging cables.

The system uses Topcon’s 3D-MC2 technology with the dual IMU sensors and new, unique algorithms to deliver an integrated solution that locates the sensitive GNSS technology safely inside the cab instead of out on the harsh environment of the blade.

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Machine Control

Nova Amico MS60 MultiStation.

which historically have lagged behind in the field in GPS adoption.

Drake credits the “few extra points” in GPS uptake in construction to a willingness to double down on the technology’s potential. In Trimble’s case it is meant quite literally, doubling up its GNSS-based system to two GPS receivers mounted on each blade corner of its dozer products. “This provides more complete data measurement along the blade including acceleration as well as blade angle, higher display resolution and more precise operator control,” says Drake.

This is especially advantageous for complex design surfaces such as superelevation grading tasks, says Drake.

Real-time GPS positioning tells you where the blade is, in turn providing the operator with accurate cut-fill values. “In the control portion of the system once the operator flips the automatic switch, the system will drive the blade to that design grade also visible in the cab.”

Leica Aibot X6.

robotic total stations to see around and over look at. Contractors should look at the job obstacles such as tree lines and concrete site overall and then invest in the solutrucks. tions that will empower them to control the The wow factor, if it comes in variables and eliminate guesswork.” anywhere, says Leica Geosystems’ segment Increasingly, this means exploring manager, NAFTA Machine Control, Magnus innovations such as the Leica Nova MS60 Thibblin, is in how we refine the way MultiStation, which combines precidifferent machines, rovers and site offices sion 3D scanning and a total station in a are connected so that job site activities single solution, says Thibblin, significantly and productivity are precisely tracked and improving the amount of intelligence measured. “We have bestin-class sensors on a range “Contractors should look at the job site of machines, for example, but I don’t believe a overall and then invest in the solutions specific product on site is that will empower them to control the what the contractor should

variables and eliminate guesswork.”

IT’S NOT ALL ABOUT GPS It’s one thing to grade to 30mm on a subgrade and stone grade using GPS, quite another to fine grade to 5 or 10mm using GPS all by itself. Nor is it always sufficient to supplement it with laser guidance to get close tolerances required by the job.

Along with Geomax’s Zone Laser Rotator Series its flagship product Zoom90 Robotic Total Station was designed to do what GPS alone cannot do, dramatically minimize the time for surveying grade. For its part, Leica Geosystems focuses its attention on the capabilities of optical, tripod mounted

Komatsu crawler dozers with machine control sense blade load from onboard GPS sensors instead of the blade.

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Leica Pegasus:Backpack.

provided to the construction team. “When you can both scan and accurately measure with a total station, you are opening up a lot of possibilities,” he says.

“You can now easily capture volumes, stockpiles, the inside and outside of buildings, and track progress during the day or week.” This capability provides a substantial advantage not only on horizontal construction, says Thibblin, but also on vertical construction, providing contractors with more job site flexibility.

Another innovation, the Leica Pegasus:Backpack, is transforming site walkthroughs into as-built quality assurance checks by capturing rich 3D data as part of the general workflow. Unmanned aircraft

The PC490LCi-11 is the world’s largest 3D semi-automatic construction-sized excavator.

systems (UAS) like the Aibot X6 can be used to quickly capture high-resolution topo maps of the construction site while hovering to inspect difficult-to-reach assets; and laser scanning solutions such as the Leica ScanStation can quickly capture a vast amount of millimeter-accurate data from the ground at the touch of a button.

As live data flows throughout the construction process, teams work quickly and with confidence, Thibblin adds. “The ability to identify and correct errors early on reduces rework, maximizes efficiency and increases productivity.”

LOOKING DOWN THE ROAD Will GPS see greater uptake? Count on it,

says Jeff Drake. One problem: the pool of experienced equipment operators is shrinking as they retire and are not being replaced quickly enough. But that, says Drake, could actually stimulate improvements in technology design and technology adoption over the next three to five years.

“So I think we’ll have to introduce a lot more sophistication inside the cab in terms of what guidance operators will be looking for over time. Not just in terms of what they see on the on-board computer, but what level of machine automation will take place.”

David Godkin is a Toronto-based freelance writer. Send comments to editor@ on-sitemag.com.

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Working in winter

HOW TO PREP YOUR WHEEL LOADERS FOR WINTER Keep your machine clean, warm up, cool down and other expert advice on winterizing your wheel loaders

BY NATE HENDLEY

I

f you want to use your wheel loaders in winter for removing snow or anything else, you need to ensure your machines can handle cold-weather conditions. An obvious way to protect your equipment in wintertime is to park it in a heated facility when not in use.

“If you have the ability to keep [your wheel loader] inside a climate controlled environment, then the machine’s going to work better, it’s going to start up better, it’s going to get to operating temperature sooner,” says Brad Stemper, solutions marketing manager

for CASE Construction Equipment.

Problem is, heated facilities are few and far between on construction or highway worksites.

“If you are not able to keep it inside, the recommendation is to at least plug it in.

Doosan offers a block heater option if the wheel loader is kept outside,” says Michael Stark, product specialist, wheel loaders for Doosan Heavy Equipment and Doosan Infracore Construction.

Again, this step isn’t always practical so at the very least “park the wheel loader out of

the wind. If there’s blowing wind, there will be wind chill and that makes it that much colder,” says Stark.

While keeping a wheel loader in a heated facility or plugged into a block heater is ideal, most wheel loaders today are “well-designed to operate in very cold temperatures,” notes Stemper.

In extreme conditions, “you can also pull the batteries. Batteries work better when they’re warmed up a little bit. Cold cranking amp batteries [are an idea],” says Stark.

According to CASE information, fully

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Experts advise topping up the tank after every winter shift. This helps reduce the condensation in the wheel loader’s fuel tank. If water gets in the system, it can damage and destroy the engine.

and warm up the hydraulic oil. Run the boom and the bucket,” says Stark.

The duration of the warm-up “depends on the temperature and wind chill. It could take 10 minutes. In extreme cold weather, I would highly recommend 10 to 15 minutes.

The longer you warm it up, the better it is on the machine,” he continues.

“OAT coolant doesn’t mix with the Once you’ve let the traditional coolant that you and wheel loader warm up “you want to slowly go through I have always put into the car [in some cycles—rotate your winter]. If you mix the two, it will bucket fully open, rotate your bucket fully closed. Do actually gel.” it slowly. Raise your lower arms all the way up, lower your lower arms all the way charged batteries at 1.4 degrees down,” advises Stemper.

Fahrenheit retain less than half Construction equipment experts were of their normal starting power. Once the asked about anti-freeze, typically a 50/50 temperature reaches -20.2 degrees Farenheit, water/glycol mix. the battery has less than a fifth of its normal “There are multiple grades of anti-freeze starting power. In very cold weather, CASE for use with wheel loaders. A 50 per cent recommends running wheel loaders and other grade will work to temperatures down to -40 construction equipment long enough for degrees Farenheit. As you go above that, say batteries to regain any charge lost by starting. every 20 degrees or so, you can start decreasRunning the machine at low throttle ing your anti-freeze. At -22 degrees Farenprior to a shift also gets warm hydraulic oil heit, you could probably get away with 45 per circulating. cent anti-freeze and 55 per cent water,” says “You want to warm up [the wheel loader] Stark.

Stemper says OAT (Organic Acid Technology) coolant has proven to be effective in increasing engine protection and coolant performance and longevity. CASE began shipping select machines with OAT coolant in December 2013 and will expand the coolant across further product lines throughout 2016.

(See OAT sidebar on pg. 30) “OAT coolant doesn’t mix with the traditional coolant that you and I have always put into the car [in winter]. If you mix the two, it will actually gel,” Stemper warns.

Experts urge wheel loader operators to top up their fuel tank after every winter shift.

Doing so, however, tends to be “one of the most overlooked items” on an operator’s wintertime to-do list, says Chris Cline, product marketing manager for utility loaders in John Deere’s Construction & Forestry Division.

“Any time you have a day that’s warmer than night and you have that cold, you’re going to get condensation, which turns to water. Then you have water in the system, which can damage and destroy your engine,” states Cline.

Topping up the tank after every winter shift is “a good process to help reduce the condensation in the wheel loader’s fuel tank.

Overall, it’s a good practice to follow yearround,” agrees Stark. on-sitemag.com / 29

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WHAT IS OAT? OAT is an acronym for Organic Acid (Additive) Technology, which describes the type of materials responsible for the corrosion protection offered by a coolant of this type. OATs are Long Life Coolants (LLC), based on minimally depleting carboxylate technology. This technology provides superior protection to all components of the cooling system including those exotic materials like aluminum and magnesium found in the modern day engine.

Unlike traditional coolants the need for regular additions of Supplemental Coolant Additives (SCA’s) at scheduled service intervals is no longer required, providing a true long life product, which can provide significant “cost savings”.

From coolantexperts.com Experts urge operators to inspect tires for damage, and make sure they are correctly inflated.

On the topic of tires, Stark says, “I would definitely keep L3 tires or something like that, or radial tires. L5, you don’t really need.

I wouldn’t do anything smaller than L3 for good traction in snowy conditions. Radial tires will probably give you better traction than bias tires in winter. If you have a condition where you really need extra traction, you can put chains [on your tires temporarily]…

Chains are hard on pavement, so just use them for extreme conditions.”

“An important maintenance tip in winter is keeping your wheel loader tires at their correct inflation…following the correct wheel loader tire inflation will help add life to the tire,” explains Stark.

Tires should also be inspected for damage prior to winter use. In a similar vein, it’s important to replace damaged glass and mirrors before using your wheel loader in winter and making sure work lights, beacons, flashers, signals, brake lights etc. are all in working order.

Some construction equipment companies sell “cold weather packages” for winter use.

“A cold weather package on a wheel loader can protect machines working in extreme temperatures down to -50 degrees Fahrenheit. One such package [from CASE] offers two heavy duty 950 CCA 12V batteries, low-temperature hydraulic oil, a hydraulic oil cooler bypass, hydraulic heat

load valve, an engine block heater, an airintake grid heater and fuel warmer, heated mirrors and a reversing fan to remove snow accumulation from the radiator,” says Stemper.

The human factor should not be overlooked when winterizing wheel loaders. Doors, panels and seals should be inspected before the advent of cold weather to make sure there are no leaks or cracks and wipers inspected to make sure they’re working properly. Many wheel loader cabs are heated while some even come with heated seats, all for the benefit of the operator.

If operators need to run through a warm up cycle, Stark recommends some cooling off time once work is done as well.

“Go through a cool down procedure [after your shift]. If you’re working hard, even in very cold weather, everything heats up. If you let it cool down for a few minutes, it benefits the engine life. A lot of people make this mistake and just jump out of the cab [after a shift],” states Stark.

Other tips: keep your wheel loader clean.

Stemper says it’s particularly important to keep the undercarriage clean in winter. By failing to do so, slush and snow that accumulates during the day can turn into solid ice at night.

Keep windows clean too, to maintain visibility (an extremely important consideration in winter).

SNOW REMOVAL Most manufacturers offer attachments to turn wheel loaders into snow removers.

CASE recently introduced a new line of heavy- and light-duty sectional snow pushers, compatible with current and older wheel loaders. The heavy-duty line, for full-sized wheel loaders, includes pushers up to 17 feet wide.

Each pusher has a Hardox 450 steel cutting edge, designed to scrape down to pavement.

As for Doosan, “we have a snow pusher attachment mounted to our Doosan bucket with chains. The snow pusher is designed for use with our smaller wheel loaders. There’s also the all-purpose bucket that can be used with a wheel loader to load snow into trucks or pile it high,” says Stark.

John Deere has general-purpose buckets for snow removal and works with aftermarket suppliers who can equip wheel loaders with attachments for the same purpose.

For snow removal or anything else, Cline offers the following summary for winterizing your wheel loader: “Keep your machine clean, monitor and maintain fluid levels, make sure you’re using the right type of fluid for the temperature, keep your joints greased and check tire pressure. Those are my big ones [for winter-use].”

Nate Hendley is a Toronto-based freelance writer and author. Send comments to editor@on-sitemag.com.

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AUGUST 2016

HALIFAX CONVENTION CENTRE CONSTRUCTION IS ON TARGET See photos on PG. 40

IN THIS ISSUE: www.on-sitemag.com 34 CRMCA Column:

Facts about the stats | 36 Kingstonâ&#x20AC;&#x2122;s sidewalk task force on-sitemag.com / 33

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Facts about the stats

T

he concrete industry, along with the rest of the modern world, is in transition as the movement away from carbonbased fuel systems is becoming a priority in developed countries. Policy makers at all levels, whether misguided or not, believe carbon taxing is the way to incent industry. Combined with the move to get the general population to move to cleaner methods of combustion, we are seeing a substantial shift in traditional energy usage. Whether this approach is feasible, the facts that the policy makers implement must honestly reflect the contribution of the industries that are impacted. This is not always the case and in the statistics being used to compare the wood and concrete industries on an environmental contribution; there are many reporting inaccuracies. These are leading policy makers down a path that will not improve the reductions that they are seeking; as the statistics being used are not representative of the industry. Specifically the wood industry contribution is being sold as a method of marketing wood products versus promoting a sustainable approach.

First, the carbon footprint of wood is actually quite poorly understood as accounting for the carbon lost from soils, waste wood, habitat fragmentation from logging roads, and the transition from natural to managed forest ecosystems is still challenging. However, it is most certainly far more complicated than “wood sequesters carbon.” In addition, carbon is only one metric of concern. Deforestation has significant ecological impacts, which are not included in the reporting.

What we do know is that the forest and wood products industry overall has significantly larger carbon emissions than concrete. Even with improved efficiency of the wood industry, the waste left in the forest after harvesting is substantial (e.g. branches, roots, bark). These unused parts are either burned, producing CO2, or left to rot, releasing methane that has far higher GHG emissions than CO2.

Statistics Canada tracks forestry and logging separately from wood product manufacturing. When combined, the total GHG emissions for wood far exceed cement and concrete manufacturing. According to Statistics Canada, wood generated nearly 16,500 kilo-tonnes of GHG emissions in 2013 vs. only about 10,000 kilo-tonnes for concrete and cement, or 6,500 kilo-tonnes less. According to the U.S. EPA a typical passenger car emits 4.7 metric tonnes of CO2 annually. The higher emissions by the forestry and wood products industry relative to those from the cement and concrete industry are equivalent to the average annual emissions of 1.38 million cars.

The concrete industry is environmentally conscious and has pursued options to be more sustainable. For example, in Ontario 96 per cent of concrete plants bear an industry developed ECO certification. We were recently given a national award for mandating this designation as a condition of membership. There is a significant cost to each plant to achieve this designation and two-thirds of these plants

voluntarily opted to go further and obtain an ECO gold designation.

Another example is the Canadian precast concrete, which was the first construction sector in Canada to launch a sustainable plant program that calculates a plant’s environmental impact from cradle to gate.

The cast in place concrete sector has been conducting an industry wide environmental product declaration (EPD) for LEED that would allow concrete mix designs to qualify for points in the LEED process.

The precast concrete sector recently launched their North American EPD’s in collaboration with their US partners.

Wood is a far more powerful and well-funded lobby and is often ranked among the most powerful in Canada. This powerful lobby is what allowed the wood industry to bypass the Model National Building Code and lobby the provinces directly for building code changes. Wood often uses the “innovation” channel – a section created for sustainability reasons that bypasses standard building code procedures. This legitimate “innovation” channel has been used as a loophole by the wood lobby and has created significant concern with other building materials who follow the standard code approval process. In Quebec the wood lobby provided “Guidelines”, which the Quebec Government approved to build 12-story wood buildings and in B.C. the wood lobby is promoting 18 storey wood structures, all outside the Building Codes.

The massive timber projects being promoted around the country are also heavily subsidized by the wood sector. The recently completed insurance sector study on wood-frame construction shows why the subsidy is necessary: the insurance costs are so high that wood has no cost advantage when fire and other risks are factored into construction.

Governments continue to manipulate statistics in the climatechange battle to minimize industrial impact on the world, but in the Canadian context the policy makers are not looking at a balanced equation. This continued ignorance of the total picture will result in penalizing specific sectors while not recognizing the actual impact of the wood industry.

Provided by the Canadian Ready-Mixed Concrete Association. Send comments to editor@on-sitemag.com.

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Case Study

Task force forms to analyze City of Kingstonâ&#x20AC;&#x2122;s failed exterior sidewalks

BY ROSS MONSOUR

D

uring the winter of 2013, conditions of freezing rain and extreme cold temperatures lasting into early May resulted in reports of failed exterior sidewalk and curb work across the province of Ontario. Some of the municipalities experienced major to minor surface failures that ranged from pop-outs to scaling and mortar flaking. Concerns were raised with the contractors, as these perceived failures were still under contractual warranties.

This article is the study of a joint effort in Kingston, Ont. to attempt to identify the cause of the failures, and recommend solutions that would address future infrastructure demands and provide a maintenance plan for the existing issues.

The initial concerns raised by the municipality, were registered with the contractors as a complete rip and replace

option under the warranties. The contractor then had to determine where the responsibility for the surface failures should be applied, to the materials or the workmanship.

The contractors followed the City specifications for placing and finishing as they have done for years. The producers have supplied the same material for other jobs during the same time period with no failures.

So is it reasonable to rip and replace the existing material without trying to predict the reasons for the failures? And, if the assumption is that replacing will solve the problem, then why were there only failures in some cases and not others?

Many questions needed answers, but the first one was: what is the extent of the problem?

Municipalities are placing a greater emphasis on asset management as they grapple with the increasing costs associated

Visual assesments of the surface condition was done at six sites in Kingston, Ont.

with infrastructure renewal and replacement. For most municipalities, this process is not yet a fine art. Defining the extent of the problem would assist in defining the level of detail in resolving a problem. If the number of failures were within a standard deviation of failures then the industry would

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Case Study

After the initial site assesments, three sites were selected for further intrusive testing.

have to build that tolerance into the bidding process. In this specific case the City was claiming almost a 90 per cent failure rate based on their assessment. This number was disputed but the rate of failures was significantly higher than normal.

Led by local concrete producers, the City was approached about investigating the source/causes of the problems. A group representing developers, contractors, producers and the City was formed and conducted an investigation aimed at minimizing future issues and providing potential solutions for the existing failures. In order to conduct an investigation the parties to the study must understand that the only data that can be collected are on the material. A consultantâ&#x20AC;&#x2122;s job is to conduct a forensic analysis on the samples and try to provide an educated and experienced analysis on what could have caused these surface failures. Contracts and letters of agreement were signed and the result is a

summary of the investigation.

Stantec Consulting Ltd. was engaged by a task group, consisting of representatives of the Construction Association of Kingston, the curb and sidewalk contractors, the Ready Mixed Concrete Association of Ontario (RMCAO), and the City of Kingston to carry out this investigation. The purpose of which, is to attempt to identify the probable cause of the deterioration and provide recommendations for future City of Kingston concrete sidewalk work, in order to reduce the incidence of defective work and the necessity of costly replacement.

The task group selected six sites for the investigation. These sites represent both sidewalks from the Cityâ&#x20AC;&#x2122;s sidewalks, and private developer projects, and are believed to be representative of concrete suppliers and finishers. The investigation method included visual assessment of the surface condition of the sidewalks and analysis of concrete cores retrieved from representative

areas. After the initial visual site assessment, three sites were selected for further intrusive testing. Eleven cores were taken from each of the three selected sites.

Laboratory analysis included compressive strength determination, microscopic analysis of hardened air voids, degree of chloride penetration, and petrographic examination of the concrete samples. A comparison was made between cores obtained from deteriorated areas and reference cores obtained from apparently sound areas.

A visual assessment criteria, using frequency of occurrence of defect of various types, was implemented to describe common defects such as scaling, popouts and popoffs (mortar flaking). These criteria are generally consistent with those provided in the American Concrete Institute (ACI) Manual of Concrete Practice and Ministry of Transportation of Ontario (MTO) â&#x20AC;&#x201C; Manual of Condition Rating of Rigid Pavement.

The principal defects within a sidewalk

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are surface related and are typically scaling, mortar flaking and popouts. Popouts are the result of expansion of deleterious aggregate. The defect is considered aesthetic unless the occurrence is extensive. Selection of better quality aggregate will usually correct this deficiency. Scaling is a loss of mortar over a broad area of the surface. Typically, this is confined to the surface. Severe scaling can contribute to loss of functionality of the sidewalk in that it can trap water and ice and become a tripping hazard. Mortar flaking is similar to scaling except much more localized.

It is sometimes associated with finishing methods or drying out of the paste over coarse aggregate.

Laboratory testing indicates the concrete in this investigation generally meets the current Canadian Standard Association (CSA) standard A23.1 requirements for compressive strength and the hardened air void parameters. A loss of hardened air voids at the near surface was not observed in this investigation program indicating factors other than air entrainment played a bigger role in the surface deterioration.

Moist/wet curing at above 10 degrees Celsius for a minimum seven days for all sidewalk construction must be strictly enforced to ensure durability of the concrete surface. Use of curing compounds may be simple and less costly; however, its effectiveness is greatly dependent on human application practice and environmental factors. Unless a full understanding of the products and application process and close monitoring is in place, it is not the preferred curing method to improve consistency of quality sidewalks.

To improve the quality of sidewalks in the City of Kingston, we recommend the following actions be taken: • Modify City specifications: Roads, concrete materials, to conform to OPSS or CSA Standard A23.1 requirements.

• Adopt project-based QA sampling and testing of ingredient materials, in addition to the routine QC testing required of the contractors. Include referee samples retained until two years after contact substantial completion.

• Increase training and awareness for the finishers and quality inspection staff.

• Enforce stringent curing practice, including curing as an identifiable pay item.

• Require bonding of private developers and more stringent quality documentation practices.

• Measure and compensate improvement through a standardized numerical quality index system.

For the existing problems a proposed sand blasting alternative to replacement would remove the weak top layer and preserve the sidewalks for their expected life span. A proposal was put forward to the City as to a demonstration of this tech-

nique to see if it met the aesthetics of the City’s expectations.

In the end there was no agreement on how to resolve the existing problems but for future investigations the use of salts and better documentation of the process would assist in narrowing down the causes and effects.

Article contributed by the Canadian ReadyMixed Concrete Association. Send comments to editor@on-sitemag.com.

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Project Profile

FAST FACTS

CONSTRUCTION IS ON TARGET FOR THE HALIFAX CONVENTION CENTRE Slated to begin hosting events in early 2017, the Nova Centre is the province’s largest integrated development project to date

I

n June, when On-Site visited the Halifax Convention Centre jobsite, the more than 41,000 cubic metres of concrete had already been poured, and nearly 500 workers were onsite as construction ramped up to focus on interior finishes.

The Centre, when complete, will have 120,000 sq. ft. of event space, including two convention levels and a mix of multi-purpose, meeting and ballroom space. The building will be the first state-of-the-art smart building in Atlantic Canada. A smart building uses energy efficiency and efficient systems in terms of structure, appliances, electrical systems and plumbing. It is also designed to a LEED gold

standard.

The Halifax Convention Centre is part of the Nova Centre, a one-million-sq.-ft., mixed-use development including a hotel, financial tower and retail space. It is the largest integrated development project yet in the province’s history. The funding of the convention centre is shared between three levels of government, totaling $169.2 million.

The convention centre will begin hosting events in early 2017. And, to date, the Centre has booked 50 national and international events, with more than 40,000 visitors that will generate an estimated $59 million in direct spending.

Concrete amount is 41,000 cubic metres of concrete

N

18,034 tons of structural steel

5

bridge bath tube girders weighing 180 tons each

3 electrical vaults the total number of transformers is 18

18

elevators

10,000 plus kilometres of electrical cable pulled

9 escalators

MAIN PHOTO: The new Halifax Convention Centre is located on Argyle Street in downtown Halifax.

In this photo you can see the Centre, and the adjoining hotel, which will also be part of the Nova Centre when it’s complete.

AT LEFT: View from the penthouse in what will be part of the Nova Centre’s financial tower.

AT RIGHT: View from the second floor, looking down into the main lobby.

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7/18/2016 7:54:22 AM 2016-08-08 2016-07-18 3:53 10:22 PM AM

Software

By Jacob Stoller

Are you getting a bad rap online?

B

“

of prevention here is worth a pound of cure.

Once a negative remark or story is posted, Earle says, it can only be removed about 20 per cent of the time. Consequently, mitigation is usually about displacing negative stories with positive ones.

With that in mind, here are five suggestions for acquiring and maintaining a solid online reputation.

1. Develop an ongoing practice of asking your customers to post positive reviews on rating sites, in social media, or as testimonials for your website. This may feel unnatural, but the practice is now widely accepted.

2. Use Google and other search tools to check your online reputation weekly, and respond quickly to complaints. Goodall notes some of the most helpful reviews result from situations where a project had issues, but the contractor was very responsible and persistent in resolving them.

3. Get positive stories into the traditional media, either by reporting interesting projects or sharing expertise. A firm specializing in concrete, for example, could offer a useful article about maintaining concrete surfaces.

4. Feature up-to-date case studies and testimonials on your website. A 10-year-old rave review won’t have much influence, and one that pertains to a segment of your business that is no longer profitable for you won’t help your business.

5. Become active on social media by joining discussion groups and forums on LinkedIn and other sites, or by signing up to the rating sites that you respect.

In conclusion, online communication is a two-way street, and online reputation management can be a golden opportunity. If managed properly, it can not only keep firms out of hot water, but help them understand their markets, troubleshoot their organizational problems, and forge stronger ties with potential customers.

ad news travels fast” may be an cent believe what they read online as opposed ancient proverb, but even a few to what sales brochures tell them. Another decades ago nobody could have indicator is the explosive growth of review imagined that a story could go viral sites such as homestars.ca. “We’ve seen trafin a matter of minutes. The influence of onfic on these review sites growing dramatically line information is growing so rapidly that no – 158 per cent annual growth was an average sector can afford to ignore the risks. statistic I saw,” says Earle.

Construction firms aren’t known as early Sometimes, the influences can be subtle. adopters here, and most would give this a Large construction firms are frequently rated fairly low priority. It’s true contractors typically by their employees on sites like Glassdoor build their businesses through long-term, and ratemyemployer. This can impact overall face-to-face relationships. However, the pracconfidence in the firm as well as their ability tices of forging new business relationships are to attract new employees. undergoing fundamental changes, and the Another rapid growth area is the muchtrend is working its way into construction. publicized growth in social media sites like Online reputation isn’t just about finding customers. Many “Online reputation matters in all firms confront their online reputation when looking for kinds of unforeseen contexts that you financing or building partnercan’t really predict.” ships with other firms. “Online reputation matters in all kinds of unforeseen contexts that you can’t really predict,” says Matt Earle, president of online reputation manageFacebook, LinkedIn and Twitter. Viral stories ment firm Reputation.ca. often begin here, posted by influencers who Online communication is becoming share opinions with thousands of followers. the norm, and even many who have been Traditional media are also prominent in the workforce for decades are changing online, and their stories rank high on Google. their habits. For example, the practice of Media stories about court cases, accidents, “Googling” a firm as part of due diligence is or contested invoices tend to have long shelf automatic for everybody from homeowners to lives – a Google search will often give a high to bank managers. ranking to a story that is a decade or more Often, this happens under the radar. old. Furthermore, major revelations such as “Even if there is a controlled bid and selecthe release of the Charbonneau Commission tion process, ultimately those processes Report, which singled out widespread corrupare administered by individuals who can be tion in Quebec’s construction industry can swayed by all sorts of mysterious occurrences subject firms to closer scrutiny. that take place online,” says George Goodall, The bottom line is that all these sources Jacob Stoller is principal of Toronto-based senior manager at Info-Tech Research Group. can be accessed with a few taps on a smart consultancy StollerStrategies. Send comments Earle notes 76 per cent of buyers consult phone. to editor@on-sitemag.com.

Google before making decisions, and 54 per As in all matters involving trust, an ounce

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AUGUST 2016

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RISK

By David Bowcott

Sizing and recovering impact costs from insurance

D

esigning and building an asset, whether it’s a road or a building, is a complicated task. It requires precise coordination of resources, clarity of communication, and massive amounts of patience. The prime contractor is like the conductor of an orchestra, ensuring all musicians know their role. If one player misses their cue, the entire orchestra is disrupted, and the performance fails.

Insurance plays a key role in preventing and mitigating failure. When an event occurs that puts a project in jeopardy, insurance funnels much needed capital to that project to ensure it is still completed on time and on budget. This event-triggered capital covers the direct costs, and perhaps more importantly, can cover the knock-on costs associated with the event occurring. It is these knock-on costs, or impact costs, that I want to discuss.

Virtually all of the insurance policies used in an effectively risk-managed construction project include coverage for impact costs. The following are a few policies you should pay close attention to when designing and sizing the policy terms associated with impact costs: • Builders Risk/Course of Construction Property Insurance – This policy covers direct costs associated with a property event, costs due to the delay in start-up of the project, as well as soft costs and extra expenses that are the result of the property event.

• Professional Liability Insurance – This covers the errors and omissions of the delivery of professional services, most often design, for the project. A design error could result in impact costs, thus the policy limit should consider these

potential costs.

• Environmental Liability Insurance – This covers costs associated with an environmental event. Once again, these events can create significant delays to the project and proper care should be taken to assess likely impact costs of environmental exposures facing the project.

• Subcontractor Default Insurance – Whether it is a blanket policy or project specific (dedicated), the impact costs sub limit for subcontractor default insurance should be adequately sized (under the policy this limit is known as the Indirect Limit). Most often the limit is maintained at the standard $5 million level, however, there is potential that this limit can be increased in order to properly manage impact costs associated with key subcontractors.

• Surety Bonds – Whether it is subcontractor bonds or prime contractor bonds all stakeholders should ensure there are no clauses in the bond wordings that could eliminate or reduce coverage for impact costs.

The above represent the bulk of the project specific covers that you should pay attention to in order to ensure the coverage is adequately sized for your project.

Once the policies are adequately sized, the next step is to put a solid plan in place to ensure fulsome and prompt recovery for impact costs associated with each policy.

Recovering the direct costs from an insurance claim on these policies is relatively easy. It is the impact costs that are often the most difficult to prove for insurance carriers.

Here are some sound steps you can take in order to build a strong impact cost recovery strategy:

React Quickly – As soon as you see any sign of an event on the project that could lead to a delay, immediately perform an assessment. The assessment should determine what the root cause of the event is and which project-specific insurance covers could be triggered as a result.

Documentation – Tied to the above point on reacting quickly, your team needs to ensure the root cause of the event is properly documented, and, of equal importance, the impact costs are clearly captured. Further you need to ensure clear documentation that links the impact costs to the root cause of the event.

Insurance Carrier Notice – Make sure you are familiar with the notification requirements under all of your policies. Often there is a reluctance to advise the carrier that there may be a claim in the making. You should discuss the potential claim with your risk advisor and determine the most effective way to notify the carrier to ensure optimal recovery.

Claims Preparation and Valuation Strategy – This isn’t just the claims advocacy services offered by your broker, rather these are forensic accountants and engineers that have expertise preparing and valuing claims, in particular impact cost claims. Ensure you have a list of such service providers handy in order to retain their services so you can put together a clear proof of loss for the insurance carriers. It should be noted that most quality insurance policy wordings will allow the costs associated with such services to be recovered from the policy limit.

The above tips will help you to effectively size the coverage under your various insurance policies to ensure adequate cover for impact cost. In addition, pay particular attention to designing a recovery strategy for coverage associated with impact costs. It is time well spent.

David Bowcott is senior vice-president and national director of Large/Strategic Accounts at AON Reed Stenhouse Inc. Send comments to editor@on-sitemag.com.

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CONTRACTORS & THE LAW

By Matthew Swanson and Alexander Bjornson

Tender with care: The importance of bid compliance

T

endering is often a complex and hurried process, and sometimes mistakes are made. In the recent case of True Construction Ltd. vs.

Kamloops (City) , the British Columbia Supreme Court and the Court of Appeal considered a number of issues relating to tendering and the need to comply with the rules set out in a call for tenders. In both instances, the Courts emphasized the importance of bid compliance.

True Construction Ltd. vs. Kamloops (City) involved the construction of a fire hall for the City of Kamloops. The City’s tender instructions required the submission of certain bid documents, including a bid form and five appendices (“A”-”E”) by way of sealed envelope. Bidders were permitted to revise the proposed contract price prior to the tender deadline by faxing in a specified form (appendix “F”).

The tender documents also included a “discretion clause”, which permitted the City to accept bids that did not conform strictly to the requirements, so long as the irregularities were minor or technical and did not give the bidder a competitive advantage. However, where a bid failed to conform to the instructions to bidders, the clause gave the City discretion to disqualify that bid.

True Construction submitted a sealed bid to the City the day before bidding closed. However, one of the required appendices (appendix “A”) was incomplete and another (appendix “B”) was not included.

The following day, True Construction sent a fax including completed appendices “A” and “B”, all under cover of appendix “F”.

After reviewing the bid documents, the City determined that True Construction’s bid was non-compliant and awarded the contract to

another contractor.

True Construction initiated court proceedings, arguing that its bid was compliant because, in its view, the tender instructions did not require all appendices to be included in a sealed envelope and, in the alternative, that the alleged noncompliance was immaterial and should be overlooked.

Canadian courts have repeatedly indicated that bids, which simply omit inconsequential details or are submitted in a different format than requested are generally capable of acceptance (so long as the tender contains all relevant information).

However, bids that fail to include requested material information cannot be accepted unless there is a “discretion clause” contained within the bid documents, in which case the measure for a bid’s validity is “substantial compliance.” In such instances, courts consider whether the bid failed to address an important requirement, and if so, whether there is a substantial likelihood that the defect would have been significant or material to the owner’s decision-making process.

Here, the Court found that True Construction’s bid did not strictly comply with the tender requirements. While appendix “F” could be used to alter the bid’s contract price, it could not be used to complete a bid and provide information that should have been included in the sealed envelope. By submitting follow-up documents by fax, the Court found that True Construction ignored the required sealed bid format, making True Construction’s bid not strictly compliant.

Nevertheless, because the tender documents contained a “discretion clause”, the key issue was not strict compliance

but whether there had been substantial compliance. However, even under that framework, the Court was unable to find in favour of True Construction. The Court found that True Construction gained a competitive advantage because it was able to negotiate with subcontractors while other bidders could not. This irregularity went beyond a minor or technical nature and, in the circumstances, the Court found that True Construction’s bid was incapable of acceptance. True Construction’s subsequent submission subverted the tendering process and provided an unfair advantage to True Construction.

True Construction disagreed with this outcome and appealed the case to the Court of Appeal, arguing that, even if the completed appendices were absent, its original bid was capable of acceptance.

The Court of Appeal dismissed the appeal and upheld the City’s decision to award the work to another (compliant) bidder.

The decision in True Construction Ltd. vs. Kamloops (City) highlights the importance of adhering strictly to bidding requirements.

While courts may overlook trivial errors, it is unlikely that non-compliant bids resulting in any perceived competitive advantage will be considered capable of acceptance. Contractors need to take great care in preparing bids and closely follow tendering rules to minimize risk. Contractors should review the tendering process, the required elements of a bid, and tender with care.

This article is provided for general information only. It may not be relied upon as legal advice. Matthew Swanson is a partner at Borden Ladner Gervais LLP (BLG). Alexander Bjornson is an associate at BLG. Send comments to editor@on-sitemag.com.

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IMAGINE WHAT’S NEXT. Get the ultimate view of where construction is going.

Go hands-on with the new technologies spread out over 2,400,000 square feet of exhibition space. Learn next-gen techniques, tools and ideas from over 100 education sessions. From earthshaking big iron to groundbreaking innovations, CONEXPO-CON/AGG 2017 is where over 130,000 construction industry professionals from around the world go to stay ahead of their competition.

To see who’s included in our 2,400+ exhibitors, visit conexpoconagg.com

IF IT’S NEW, IT’S HERE.

March 7-11, 2017 | Las Vegas Convention Center | Las Vegas, USA

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Co-located with ®

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Daimler Detroit #86626 Engineered to Carry Businesses Engine Print Ad

4C, Full Bleed, Single Page Onsite Magazine

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And with hundreds of authorized Detroit service locations, service is quickly scheduled, parts are made available, and your truck is back on the job in no time.

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Available exclusively in Freightliner and Western Star trucks.

DDC-EMC-ADV-0023-0716. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © 2016 Detroit Diesel Corporation.

All rights reserved. Detroit™ is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.

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