On-Site Magazine March by Annex Business Media

MARCH 2013

> INS IDE <

CONC RETE

ON-SI TE pg.37

IN ROAD SURFACES

Roadbuilding

2013

8 INNOVATIONS

ISSUE

pg.29

BIG IRON

ALL ABOUT STRUCTURE

www.on-sitemag.com

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WATCH THIS TRUCK COME TO LIFE.

The Freightliner 114SD is constructed for construction. The cab is made of corrosion-resistant aluminum, reinforced with e-coated steel. The weight-optimized design, upfit flexibility and choice of set-back or setforward axles help maximize payload and productivity. Multiple engine options mean you can spec just the right amount of horsepower, torque and fuel efficiency. And the 114SDâ&#x20AC;&#x2122;s excellent visibility, maneuverability and driver ergonomics are sure to reinforce your decision even more. Get all the details at FreightlinerTrucks.com/WorkSmart. Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. www.freightlinertrucks.com. FTL/MC-A-1177. Specifications are subject to change without notice. Copyright ÂŠ 2013. Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.

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VOLUME 57, NO.1 / March 2013

2013 Roadbuilding Issue No matter whether youâ&#x20AC;&#x2122;re dealing with asphalt or concrete, there are many new roadbuilding materials and technologies improving the durability and quality of Canadian roads. Check out articles on pages 28, 40 and 44.

Departments 7 Comment

Strength in numbers

10 News Industry news

16 Construction Statistics The latest news on building permits and construction employment

COLUMNS 50 Risk The problem with insurance

52 Funny Photo Funny Photo contest

54 Contractors and the Law Is ADR Right for You?

IN THIS ISSUE 37 Concrete On-Site

features

Index of Advertisers

On-Site travelled to Germany for an advanced screening of new products and technologies that will be unveiled at Bauma in April.

Materials, technology and evolution are making big iron more durable than ever.

Eight products and roadbuilding techniques that are making driving surfaces perform better.

Pre-Bauma Sneak Peek

Built Tough

Become street wise

Constructing the sale of your business Having a succession plan in place means you can exit your business when you want, on your own terms.

on-sitemag.com / 5

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Direct-To-Equipment Refuelling

START THE DAY WITHOUT DELAY

Once again, Petro-Canada delivers. Canada’s largest fuel provider, Petro-Canada, now gives you ON-SITE REFUELLING. It’s a great way to save your drivers’ time in the morning and, at the end of the day, save you money. Now you can have your vehicles and equipment – whether in the yard or on the job site – fuelled overnight, ready to go again when you are. No other fuel provider is more committed to meeting your needs than Petro-Canada. Delivering quality products, services and tools to fuel your business – coast-to-coast. Learn more at petro-canada.ca/osr or call 1-855-FUEL247 (383-5247) or contact your local Petro-Canada Marketer. Petro-Canada is a Suncor Energy business Trademark of Suncor Energy Inc. Used under licence.

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COMMENT

Strength in numbers

Get the latest construction news! Follow us on Twitter @OnSiteMag

hat a whirlwind 2013 has been so far. In January, I was invited to a Pre-Bauma Media Dialog in Munich, where I got an international perspective on the equipment and technology coming down the pipe (see Sneak Peek on pg. 18). In February I caught up with many of our equipment partners at World of Concrete (see pg. 44). And, just last week I spent five days in La Malbaie, Que. at the 2013 Canadian Construction Association Conference (see CCA Award Winners, pg. 10), chatting with what I can only describe as the most inspiring minds in the construction industry. I am positively brimming with story ideas for the year ahead. Now, I just need to find a little time to do some writing! Like so many of you, I spend much of my time, head down, focused on the job at hand. While you are preparing a site or digging a foundation, I am tracking down news stories and editing features to construct this magazine. It’s very easy to get too busy to attend conferences and trade shows. That said, as an industry we are reliant on one another to be at our best. A good example of this came over dinner conversations in Quebec. I was fortunate enough to be taken in by a group of roadbuilders from Nova Scotia at the CCA conference. Competitors and partners alike, these guys took every opportunity to rib each other, while standing united as ambassadors to their great province. Icons in the

Atlantic roadbuilding industry, they were quick to explain that there are often jobs where they need to work together. Whether it’s a company, a city, a province, or even a country, the construction industry is made up of tight-knit families that work together, play together, and sometimes mourn together. We here at On-Site can appreciate that last sentiment all too well. In February, we lost a member of our team when account manager John Chiasson passed away suddenly. Attending John’s memorial, I was struck by how many friends and family he left behind, how full his life was, and how I wished I had spent more time getting to know him outside of the office. Our businesses are defined by the people we work with everyday. We often spend more waking hours with them, than we do with our own families. With that in mind, loyalty, compassion and the ability to have fun at work, have never been more important. Our deepest condolences go out to John’s family. He will be deeply missed.

Corinne Lynds / Editor CLynds@on-sitemag.com

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CONTRIBUTORS

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

Meet our contributors

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

Jim Barnes / Contributing Editor

Art Director | Melissa Crook (416) 442-5600 x3260 MCrook@bizinfogroup.ca

After a lengthy hiatus from the editor’s chair and the On-Site team, Jim Barnes pitched in for a couple of days while the editor attended the annual CCA conference. Big thanks to Jim for helping out!

Associate publisher | David Skene (416) 510-6884 DSkene@on-sitemag.com Sales & Marketing Coordinator | Kim Rossiter (On maternity leave, please contact Publisher) Production Manager | Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca Circulation Manager | Selina Rahaman (416) 442-5600 x3528 SRahaman@bizinfogroup.ca

David Bowcott / Senior vicepresident, national director large/ strategic accounts, construction and infrastructure services, Aon

Published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. 80 Valleybrook Drive, North York, ON M3B 2S9 BIG Magazines LP Executive Publisher | Tim Dimopoulos Vice-President of Canadian Publishing | Alex Papanou President of Business Information Group | Bruce Creighton

“Some of you may think there are several problems

with insurance, but for the purposes of this article I’m going to focus on one problem that relates to construction projects and the operations of those projects after substantial completion—fragmentation.

”

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. Privacy Notice From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: jhunter@businessinformationgroup.ca Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9

DAVID GODKIN / Construction writer

“We’re all intrigued by the intricacies of GPS,

automated steering controls and the finer points of Tier 4 engines. But what about the larger structural components of a piece of heavy equipment, i.e. chassis, upper frame, hauler body and undercarriage?

”

Canadian Publications Mail Agreement No. 40070230 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. Canadian publications Mail Sales Product Agreement 40069240

MATTHEW SWANSON / Associate lawyer at Borden Ladner Gervais LLP (BLG)

“

No party enters into a contract with the intention of getting embroiled in a lengthy legal dispute, but disputes happen, and they can be costly.

”

Established in 1957, On-Site is published by BIG Magazines LP a division of Glacier BIG Holdings Company Ltd. Inc. ISSN: 1910-118X We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.

MEMBERS OF

Canadian Association of Equipment Distributors

Canadian Construction Association

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This is hardly small talk.

It took hundreds of customer suggestions to come up with an idea this big. Introducing the 46-ton E-Series, our largest ADT ever. But there’s more to it than just a giant payload. It’s loaded with new features like on-the-go differential locks that can be applied manually or automatically. Reversing fans to clean coolers. Smooth-riding, self-adjusting front suspension. Ground level servicing. Even under-hood service lights. Add it all up, and you’ve got some big-time productivity. Learn more about the enormous impact our customers had on the E-Series at your dealer or online.

You’re on.

www.JohnDeere.com/ADT

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INDUSTRY NEWS

Positive outlook for Ontario's construction industry Ontario’s industrial, commercial and institutional construction industry is feeling positive about its prospects in the coming year, says the Ontario Construction Secretariat (OCS). The OCS Construction Barometer, based on an Ipsos-Reid survey of 550 contractors, hit a rating of 60 (on a scale of 100)—a clear indication that the business outlook in the province is strong in 2013, with more in the industry feeling positive about this year than they did in 2012. The barometer is up three points from last year, marking the first increase in expectations since 2010. “More contractors are expecting to do more work this year than last,” says Sean Strickland, chief executive officer of the OCS. “The Barometer is pointing to increased investment and increased opportunity for job creation in the ICI construction sector. We are seeing particular optimism across southern and central Ontario—through the GTA, from Niagara to Windsor and north into Barrie and Muskoka.” The Construction Barometer gauges contractors’ perceptions of business conditions over the next 12 months. Measured on a scale of zero to 100, a reading above 50 indicates that the

number of contractors who expect to conduct more business in the coming year is greater than those who do not. The larger the gap above 50, the greater the level of optimism. The strength of the feeling in southwestern Ontario is encouraging, considering the depressed conditions in the area over the past several years. However, it must also be noted that expectations in Eastern Ontario, particularly around Ottawa, have dropped from nearly 60 on the 2012 Construction

Barometer to below 50 this year. “We are seeing pessimism in part because of concerns about government austerity,” says Strickland. The 2013 Construction Barometer was unveiled at the 13th annual OCS State of the Industry and Outlook Conference, where keynote economic speaker Derek Burleton, deputy chief economist with TD Bank Financial Group, and Katherine Jacobs, director of research and operations with the OCS, provided an overview of the construction outlook in Ontario. Panelists Mark Arnone, Ontario Power Generation’s vice president of refurbishment, execution and nuclear refurbishment, and Shawn Cronkwright, the director of renewables procurement with the Ontario Power Authority, also provided some insight into Ontario’s energy sector. For more information on the OCS, visit www.iciconstruction.com.

Canadian Construction Association Celebrates 2012 National Award Recipients The Canadian Construction Association (CCA) presented 11 recipients with national awards at a luncheon and ceremony at page 12

In Memory John Chiasson not only loved his

We will dearly miss John as a key

Maple Leafs, but he and his wife

member of our team.

Tracey travelled the globe to take in various sporting events including the European Cup of Soccer in Poland and the Ukraine last summer, and the Vancouver Olympics. John’s memorial was a full-house, a testament to his person and the many lives he touched in his 44 years. His calm demeanor and patience were very much appreciated by his clients who have expressed their sadness over his sudden loss.

February 1968 – February 2013

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X-22

s WiDi. i. Now thereâ&#x20AC;&#x2122; iF W t u o ab so easy. We all know never been as h g n ti va ca con digs. Accurate ex er when Top st fa e n o d Get the job /X 22 ti o n in g .c o m to p co n p o si

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INDUSTRY NEWS from page 10 the CCA’s 95th annual conference in La Malbaie, Que. on March 6, 2013. The CCA awards recognize outstanding individuals, firms and associations that represent the Canadian construction industry. “Listening to the awards ceremony, I really felt the breadth and width of talent in our industry,” said John Schubert, chair of the CCA. “The CCA award recipients truly raise the bar for everybody involved in the industry. There are so many great minds that do so much not only for our industry but for communities across Canada.” And the award winners are: • General Contractors Award of Recognition – Louis Fontaine, project manager, BPR Construction • Trade Contractors Award of Recognition – Francis Roy, president, Gyptech Acoustique

• Civil Infrastructure Award of Recognition – Al Reed (retired) • Gold Seal Association Award of Excellence – Hamilton-Halton Construction Association • Community Leader Award – Paul McCarney, president and general manager, Graydex • Partner Association Award – Grand Valley Construction Association • National Safety Award – Aecon Construction Group • International Business Award – DIRTT Environmental Solutions (Calgary) • CCA Environmental Achievement Award – JJM Construction Ltd. (Delta, B.C.) • CCA Excellence in Innovation Award – PCL Industrial Management (Edmonton) • CCA Person of the Year – André Morin, vice-president, Acier AGF

On-Site presents Al Reed with CCA’s Civil Infrastructure Award of Recognition All of CCA’s award winners were honoured March 6 in La Malbaie, Que. at the Canadian Construction Association’s 95th annual conference. The Civil Infrastructure Award is particularly special to On-Site, as we sponsor this prestigious category. This year’s winner, Al Reed, is well-known to roadbuilders across Canada. Having graduated from the University of Saskatchewan with a Bachelor of Engineering degree in 1957, he began working for Saskatchewan Highways as both a bridge engineer and highways engineer until 1964, when he decided it was time to try working as a contractor. He worked for Poole Construction (now PCL) building highways for 10 years. In 1974 he, along with three partners, started Carmacks Enterprises Ltd. Reed has remained involved in associations throughout the industry, including the Alberta Roadbuilders and Heavy Construction Association, where he was chairman in 1976. He also served as chair of the Western Canada Heavy Roadbuilders, and as chair of the Canadian Construction Association in 1985. He is considered pioneer in the roadbuilding industry for his work with other collaborative associations and in helping to create The Road and Infrastructure Program, Canada (TRIP/Canada), which promotes the importance of ongoing infrastructure funding. Even in retirement, he could not leave the industry and was one of the founders of the Roadbuilders and Heavy Construction Heritage Society of Canada (RHHS), a society designed to protect and institutionalize the roadbuilding industry. Congratulations Al!

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GCTR1

MoDel

SiERRA HD REGuLAR CAb

toRque

765 Lb.-fT.

MA x pAyloAD

7222 LbS.*

MA x tRAileRing

23,100 LbS.**

23,100 LbS of PuRE PRofESSionALiSM. Excuses have no place on the jobsite. That’s why we created the 2013 GMC Sierra HD Regular Cab. it boasts a maximum towing capacity of 23,100 lbs., a maximum payload capacity of 7222 lbs. and an available Duramax 6.6L Diesel V-8 and Allison® transmission that make anything it does seem effor tless. So if you’re the type who wants to do ever y thing like a professional, then stop driving an amateur’s truck. gmc.gm.ca.

WE ARE PRofESSionAL GRADE.

DEnALi 3500HD CREW CAb shown with available equipment.

2013 Sierra 3500HD DRW Regular Cab with available Duramax Diesel and Allison® transmission, when properly equipped. *Maximum payload capacity for 3500HD 4x2 Regular Cab includes weight of driver, passengers, optional equipment and cargo. Excludes other GM models. **Maximum trailer weight rating of 23,100 lbs. for 3500HD 4x4 Regular Cab is calculated assuming a base vehicle, except for any option(s) necessary to achieve the rating, plus driver. The weight of other optional equipment, passengers and cargo will reduce the maximum trailer weight your vehicle can tow. See your GMC dealer for additional details. ©2013 GM of Canada Limited. All rights reserved. Denali® Duramax® GM® GMC® Sierra® WE ARE PRofESSionAL GRADE®

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1/11/13 1:16 4:10 PM PM 13-03-12

SHOW PREVIEW

4, for a l i r p A y b s Sign up tary 2-day pas n e complim w.nhes.ca 4 5E ww NH 2 Co d e i s o m o r P On - S i t e

NHES 2013 on track to be largest show ever

xcitement is growing for the country’s largest heavy equipment event, the National Heavy Equipment Show (NHES), which will be held at the International Centre in Mississauga, Ont. April 18-19, 2013. “We are very excited to return to Mississauga for the 13th edition of this event,” says national show manager, Mark Cusack. “At this stage of the game we have our largest exhibitor base ever. We are nearing capacity with new bookings still coming in.” The NHES will encompass a significant portion of the International Centre and showcase leaders of the heavy equipment and construction industry. This year’s show will include several

features that showcase specialized industries and equipment, including: the Gravel Pit, Rental Pavilion, Backhoe Rodeo and the all new Winter Management Show and educational program. According to Cusack, the Winter Management Show presented by SIMA (the Snow and Ice Management Association), offers attendees an opportunity to network with manufacturers, distributors and dealers from the leading snow and ice management companies. It features an education component with topics that include: Build a Bid Series with Rich Arlington, CSP — The Build a Bid program, developed by an experienced team of snow professionals, is a comprehensive breakdown of

Introducing

from

Innovative Mobile Apps HCSS

Fully-Integrated Construction Apps That Handle Real Work

 Time cards  Estimates & proposals  Change order estimates

 Job site photos & notes  GPS location of trucks  Alerts, reports, & much more!

Innovative for the

Software

Construction Industry

 

Designed for construction Flexible technology

 

Constant internet not required Integrates with accounting

800-683-3196 www.hcss.com/apps

estimating and selling snow and ice management services. Growing Snow Series with Phil Harwood, CSP—Managing snow with equipment has never been easy, and yet the business climate and challenges confronting a snow contractor may be tougher than ever. Join Phil Harwood, CSP in a two-part series as he discusses some real-life strategies to grow in snow. Also new to the show this year, is the “Recruiting Here” feature. Exhibitors who are looking to grow their ranks and hire new employees will display signage indicating they are on the hunt for new talent. Visitors should come with resumes in hand to meet prospective new employers. Companies who are actively hiring and are participating at press time are listed at www.NHES.ca.

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Case Selective Catalytic Reduction technology is now available on all our F Series wheel loaders. Calculate your potential fuel savings at CaseCE.com/scr.

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

$ billions

Building permits edge upwards in January January 2013 notched a 1.7 per cent increase in building permit activity over the previous month, as municipalities issued permits worth $5.8 billion. Strength in the residential sector more than offset a decline in non-residential construction expectations. Every province except Alberta and Quebec recorded an increase, led by New Brunswick followed closely by Saskatchewan and British Columbia. Despite the advance, the total value of building permits has been trending downwards since October 2012.

5.0 4.5 Residential

4.0 3.5 3.0 2.5 2.0 1.5

Non-residential

1.0 0.5

J 2008

J 2009

J 2011

J 2012

J 2013

billions of dollars 450 400 350

Slow growth predicted for investment

300 250 200 150 100 50 0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Note(s): Actual from 2003 to 2011, 2012 preliminary actual and 2013 intentions.

Construction employment on the rise Employment rose by 51,000 in February, following a slight decline the previous month. This increase was spread between full- and part-time work. The unemployment rate remained at 7.0 per cent as more people participated in the labour force. Construction employment was up 1.2 per cent in February, and 2.9 per cent since the same time last year.

Canada’s public and private organizations and the housing sector expect their investment in construction and machinery and equipment to reach $398.2 billion in 2013, a 1.7 per cent increase from 2012 in current dollars. This amounts to the smallest increase since the economic downturn of 2009. Weaker investments were predicted for the mining and oil-and-gas extraction sector, while stronger increases were reported for utilities and in transportation and warehousing.

Employment thousands 17,900 17,700 17,500 17,300 17,100

Source: Statistics Canada

16,900 16,700

J 2008

J 2009

J 2010

J 2011

JF 2012

2013

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MORE LOADS PER DAY REALLY ADD UP With Allison automatic transmissions, your trucks will have significantly faster round-trip delivery times and get in and out of job sites far easier and quicker. So each truck can accomplish more loads per day. Add in Allison high reliability, low maintenance and competitive fuel economy and youâ&#x20AC;&#x2122;ve got money machines on wheels. Spec Allison Automatics on your next dump trucks.

ÂŠ 20 13 Allison Tr Ansmis sion inc .

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www.allisontransmission.com/productivity

13-03-12 2:15 PM

PRE-BAUMA

Bauma 2013: By Corinne Lynds

Sneak Peek

On January 29th and 30th, journalists from all around the world were invited to attend the Pre-Bauma Media Dialog at the Internationales Congress Center Munchen (ICM) in Munich, Germany. This pre-show meeting brought together more than 200 big name construction equipment manufacturers to talk about what new products and technologies will be unveiled at Bauma 2013 in April. The 30th International Trade Fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment will be bigger than ever. With more than 570,000 square metres of exhibit space and 3,300 exhibitors, this yearâ&#x20AC;&#x2122;s show will be host to more than 450,000 visitors. Although the show is located in Europe, there are plenty of new products being launched for the North American market as well. Here is a sneak peek at a few of the exciting new products that will be unveiled at Bauma in April:

Horizontal grinder A 332 kW Stage III B Iveco diesel engine powers the HG4000 horizontal grinder from Vermeer. It meets all North American and European Union emission regulations through selective catalytic reduction (SCR). To reduce material slippage and maintain controlled entry into the mill, a crush boost button function momentarily engages increased feed roller downforce on incoming material. For certain conditions, the variable feed roller downforce can be reduced or temporarily paused to boost fuel efficiency and help extend component wear life. www.vermeer.com

Crawler excavators Case CE's CX75C SR and CX80C, mid-size crawler excavators are designed for customers in the excavation, sewer and water, residential and commercial construction sectors. The Tier 4 Final emissions standards have been met through the use of cooled exhaust gas recirculation (CEGR) combined with a diesel oxidation catalyst (DOC) system. The cab has beenÂ redesigned, meeting ROPS and FOPS Level II safety standards. Interior space has been increased, as the cab is 7 per cent wider than the previous CX75 and CX80. These machines also have 9 per cent more hydraulic power than their predecessors. www.casece.com

Power cutter Optimized engine performance, enhanced start-ability and ergonomics have been improved on the Husqvarna K 760 power cutter. The result is an efficient and reliable tool, with an enhanced power/weight ratio and substantially reduced emissions. Due to a new cylinder and an additional cooling fin, emissions have been reduced by 15 per cent. This also ensures optimal operating temperatures and it makes the machine less sensitive to climate variations. www.husqvarna.com

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SKID STEER LOADERS

LOADER BACKHOES

MINI EXCAVATORS

ANY JOB. ANY CHALLENGE. ANY TIME. Meet the ALL-NEW line up. 23 MODELS. www.newholland.com

COMPACT WHEEL LOADERS

COMPACT TRACK LOADERS

TRACTOR LOADERS

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PRE-BAUMA

MiCro exCavator At 760-mm wide, the Terex TC10 zero-tail swing micro excavator is narrow enough to fit through doorways. When equipped with the standard or foldable 2-column FOPS canopy, the TC10 easily fits through low passageways. These features enable the micro excavator to access areas where construction machinery can’t normally go— such as building interiors for demolition work, or in crowded landscapes for horticulture. www.terex.com

be fitted with high-reach equipment and a standard boom-andarm configuration. A hydraulic modular joint enables a 30-minute quick change from demolition to standard attachment, boosting machine utilization when not required for high-reach projects. www.volvoce.com

eFFiCient wHeel loaders JCB’s 427 and 437 wheel loaders offer increased efficiency, lower emissions and improved operator comfort. Replacing the 426 and 436, the machines have now gone into full production. They’re powered by the Cummins QSB 6.7-litre engine and feature a progressive clutch cut-off feature plus optional five-speed transmission, and automatic differential locking axles. www.jcb.com

sHort tail swing Kobelco’s SK260SRNLC-3 excavator with 2-piece boom specification is noted for its compactness and outstanding stability. This machine clears the latest exhaust gas emissions regulations, using a DPF-equipped Hino engine. It is equipped with a short tail swing feature, improved fuel consumption and low noise technologies. The iNDr (integrated noise and dust reduction) system reduces noise 5dB to 95 dB. The excavator also features improved digging productivity (m3/L) of 6 per cent in heavy digging mode, and 9 per cent in ECO mode. www.kobelcoamerica.com

tigHt-turning Paver Caterpillar's AP300D paver delivers smooth control using a hydrostatic propel system. This machine offers paving widths that are easily adjusted with standard hydraulically extendible widths of 1.7 to 3.2 m, 4-m maximum width with bolt-on extensions. A reduction attachment narrows the paving width to 650 mm. A tight turning radius of 1.65m and fast travel speeds of 16 km/hr for enhanced maneuverability. www.cat.com

HigH-reaCH deMolition exCavator Volvo Construction Equipment (Volvo CE) is offering three new models of ultra-high reach excavators, all specially tailored to the rigors of demolition at heights: the 21-m reach EC380DHR, the 27-m reach EC480DHR and the 32-m reach EC700CHR. All Volvo HR machines can

Check out the latest industry news, events and On-Site Interviews at: www.on-sitemag.com

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wHat’S a 10% reDuction in iDle tiMe wortH? utilization: WoRkINg

WITH CaT® ProduCT LInk™, You’LL knoW. With Product Link’s easy-to-use VisionLink web application, you can easily compare working time vs. idle time. Understanding how to maximize the efficiency of all the machines on your site can help you reduce idle time and save fuel costs. And that’s not all. Just a few clicks and you can: ™

• See your entire fleet at a glance

• Set cuStoM alertS

• Monitor fuel uSage

• S cHeDule eSSential Maintenance ProceDureS.

idle

30 days 37.0 hrs

Product Link helps you access the right information at the right time. Ask your Cat dealer today about how Product Link can benefit your bottom line. It pays to know.

to learn More, viSit: www.itPayStoKnow.cat.coM

© 2013 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, their respective logos, Product Link, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity herein, are trademarks of Caterpillar and may not be used without permission. VisionLink and the VisionLink – Powered by Trimble logo are trademarks of Trimble Navigation Limited.

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BIG IRON

Built

tough Materials, technology and evolution are making big iron more durable than ever

BY DAVID GODKIN

e’re all intrigued by the intricacies of GPS, automated steering controls and the finer points of Tier 4 engines, but what about the larger structural components of a piece of heavy equipment, i.e. chassis, upper frame, hauler body and undercarriage? How much attention do equipment designers and manufactures pay to these elements, and why do so many customers take claims about the strength and durability of modern heavy equipment at face value? Part of the answer lays in the reputation that North American equipment makers have for adhering to strict manufacturing standards. But it also has to do with the history of machine design. North American heavy equipment manufacturers have inherited a legacy of machine design and an understanding of how large components go together that sometimes resists the impulse towards innovation. Volvo’s director of mechanical engineering John Haupt calls it “tribal knowledge.” “We’ve been building wheel loaders, for example, for 180 years and we’ve learned quite a bit about what you can do on wheel loader design and what doesn’t work. That’s tribal knowledge.”

KEEPING IT TOGETHER The design of a machine’s frame is a direct function of its strength requirements in a particular application. Excavator undercarriages are typically welded box structures; Volvo haulers and wheel loaders use more of an H style frame to ensure efficient distribution of loads from the front to the back of the frame, says Haupt. A formed frame in the shape of C will do the same, he adds, “but sometimes you run risks, especially in hauler applications, where the terrain is really rough and you want that extra webbing on the outside that a C frame doesn’t give you.” Someone who has been putting the box-style C frame through its paces is crawler dozer product manager Eric Nettleton. On any given day he will observe as many as 25 machines at Case’s proving grounds in Phoenix, AZ or Burlington, Iowa. “The box-style C frame is very robust… You don’t get any flexing, or any side-to-side play with the C frame so it’s very strong for most applications.” That’s key, says Nettleton, because the loads that the C frame transfers from the blade to the chassis are often enormous. “Moving along at three mph and you hit an immovable object you have to be able to withstand the immediate impact of that

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BIG IRON

load. And a box-style C frame does that better than any other design.” But getting that kind of performance, regardless of machine type, requires a firm understanding of individual structures within an overall frame. The key structure in an articulated wheel loader, for example, is the loader frame supporting the other major structures, front axle, boom arm and linkages. The rear axle mounts to the engine frame naturally, and unlike the front axle oscillates so that it rolls up and over rough terrain or obstacles in the field. Determining how all this works together while withstanding stress in the field and ensuring maximum “frame life” is the principal challenge facing engineers in their design of other machine types as well. A case in point, says John Deere product marketing manager John Chesterman, is the 544 wheel loader with a bucket capacity of 3 cubic yards. Subject that to too much stress, he says, “and you’re going to bend the steel or eventually crack it.” “But when we look at the frame we know the kinds of loads that a typical machine of that size will encounter, from the wheels pushing, the boom lifting, the linkages tilting and the hydraulics to make all that happen. We then go through a lot of calculations and testing to ensure we’re not overstressing components.”

COMMON ARCHITECTURE, SHARED TECHNOLOGY One area of heavy equipment manufacture that has evolved over the years is welding practice, notably post-weld treatments. To relieve surface stresses, mechanical shops will shot peen an entire weldment to relieve tensile stresses that occur in the grinding process and replace them with more helpful compressive stresses for greater resistance to fatigue. “Tenderizing” the surface of the

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BIG IRON

steel in this way, says Haupt, relieves surface stress and ensures better P life, something that is especially helpful when a machine requires a lot of welding. “Those are some of the things we’ve learned on critical weldments where you need something extra for support.” Another way to withstand stress is to reduce the number of bolted joints in a machine, made easier by building the chassis in one piece instead of two, as Case is doing on some of its upcoming heavy equipment. On a two-piece chassis, components are typically welded and bolted together. On a single piece chassis, says Nettleton “the undercarriage, the blade, everything that bolts to the chassis is stronger and more robust because you have fewer bolts, fewer points where something could flex differently, come loose or crack.” A two-piece chassis is also subject to tolerance gaps as more pieces from different suppliers are bolted together, “producing differences from one machine to another,” Nettleton says. “With a one-piece chassis we can really control the specification, control tolerances so everything that bolts into that one piece chassis goes together a lot better and faster.” John Haupt agrees minimizing welds and the number of bolted joints in load-carrying elements is important. “You can design

them so they never come loose. But if they’re bolted there’s still the possibility they’ll loosen over a very long period of time.” One reservation he has about single-piece chassis is the lack of flexibility a manufacturer has sharing components across different size machines in the same class. “They may have a family of machines that they want to share side rails and just vary the width according to the different size of machine…The tooling allows you to handle smaller weldments in a much more efficient way.” Another solution is casting materials for structural members instead of welding parts together. Chesterman says the principle benefit of casting is that it allows you to build more complex shapes than is possible building fabricated or plate pieces. John Deere casts some of its couplers, for example, which in turn can be sculpted for greater visibility and also helps to shave off some of a machine’s weight. “You obviously need it strong enough to carry the load, but on a wheel loader putting weight on the front end will either reduce the payload or force you to put more weight on the rear end…The less weight you have to put in a truck, for example, and a more welldesigned structure you make it, the easier it is on the drive train and the more you can put in the payload.”

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Typical materials that are cast include steel, nodular or ductile iron and grey cast iron. Grey cast iron generally goes into the construction of counterweights and engine blocks, but because it doesn’t fatigue well and tends to break under heavy loads is not used in boom structures. By comparison, ductile iron is more flexible and is sometime used in drive components.

THE RIGHT STUFF, AT THE RIGHT PRICE All of this has to be done with an eye to costs, of course. Volvo global product marketing specialist Predrag Romano says manufacturers go to great pains to balance machine price and production cost. The rule of thumb where material strength is concerned is clear, however: “Absolutely no short cuts when it comes to the quality of the steel.” Romano also agrees with Haupt that industry players generally follow the rules and work to the same uncompromising standards. And while careful not to criticize the general design or performance of John Deere’s graders, Romano did express reservations about the use of 3.5-in. diameter pins inserted into holes in its blade lift mechanism to secure it to the frame. “They say it’s easy to service because it’s easy to remove…And sure it’s way cheaper to produce it that way. But by drilling the hole through the frame, there’s always potential for cracks.” In a statement John Deere defended its use of steel pins to mount the blade lift arm structure to the mainframe. “This design has been proven on Deere motor graders for over 25 years. Welding this joint causes significant stress concentrations in the mainframe.” John Deere received support from managers at Brandt Tractor in Edmonton. “I’ve been doing this for years and I haven’t seen anything like that,” says governmental account manager, Mike Schmidt. “We have zero instances, through me anyway, of cracking issues with that area of the motor grader,” echoed his colleague Lloyd Norminton. Chesterman went further by acknowledging that the issue of structural integrity arises “whenever you put a hole in something.”

“Especially that pin, if you think about it, is generally carrying a load from one member to another, so yes there’s potential for cracks but the fact of the matter is we are not going to exceed that stress level. That’s an area we know is going to be highly loaded.” Chesterman’s confidence comes from the same place Nettleton and Haupt get theirs: on the proving grounds. Whether they’re fabricating in-house or buying from suppliers, materials have to meet rigid specification requirements. But a structure also has to pass a thorough validation plan as part of any development project: Individual components, machine assemblies, wholesale machine construction are all carefully scrutinized—as are materials. If the corner of a blade does not withstand forces found in an actual field application, says Nettleton, engineers want to know why. “What caused the failure? Was it material? Was it material quality? Was it material thickness? Was it improperly gusseted? If we have to, we re-design it and then we re-validate it. “We do a lot with the data we collect,” Haupt adds. “Not only analytical simulations but also physical measurements of the stress and strain in our key structural elements to ensure we will have adequate fatigue life for the life of the machine.” The bottom line, says Chesterman, is that customers have many reasons to feel confident about the structural integrity of North American-made heavy equipment. First and foremost, North American equipment manufacturers take an integrated approach to the stresses that the entire machine is under—from the unique loads placed on the boom to the axel loads on the frame to those very high forces that come to bear as the machine loads the bucket. “In structural design we’re looking at some of the worst case loads and making sure there aren’t any hot spots or over-stressed areas, says Chesterman. “With the typical loads that machine is going to face in its life we’re not going to get into any structural problems.” David Godkin is a B.C.-based freelance writer and regular contributor to On-Site. Send comments to editor@on-sitemag.com.

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COVER STORY

Become

streetwise Tricia Radis o

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Here are 8 products and roadbuilding techniques that are making driving surfaces perform better

o the untrained eye, a road surface is just a layer of asphalt or concrete. But there is an abundance of products, techniques and treatments that can do everything from preventing pavement from cracking to lessening traffic noise to helping us conserve water. “There is a lot of great technology available. We are way ahead of where we were even 10 years ago, so obviously we have to take advantage of it,” says Ludomir Uzarowski, principal, Pavement and Materials Engineering, Golder Associates Ltd. Here are eight innovations in road-surface products and roadbuilding techniques that are driving the future of road construction. Noise-reducing asphalt: “There have been a few cost-benefit analyses done that show that using asphalt to reduce noise levels makes more sense than constructing sound wall barriers,” says Jim Bird, director of performance for the Western Canada Asphalt, Paving & Construction product line at Lafarge. Durawhisper is a Lafarge product designed to reduce traffic noise while meeting all the normal specifications for hot-mix asphalt. It’s ideal for use in residential areas. Eco-friendly manufacturing: As a result of the focus on green technologies that is permeating the industry, asphalt mixes are being developed that have less of an impact on the environment.

Lafarge’s Duraclime is a warm mix that meets all the specifications of a hot mix. Because it is manufactured at a lower temperature, odour, smoke, fuel consumption and emissions are reduced during manufacturing. According to the company’s website, using Duraclime can lower the carbon footprint of an asphalt-producing plant by up to 20 per cent. Cost-wise, Duraclime is about the same as traditional hot-mix asphalt. Says Bird, “I’m not sure that anybody has a good reason not to use Duraclime. Regardless of whether it’s a Lafarge product or one belonging to our competitors, the technical data coming out of analyses concludes that warm mixes are equivalent to hot mixes in terms of performance standards.” Eco-friendly ingredients: Another way manufacturers are making roads more sustainable from an environmental perspective is by using recycled material in the mix. For instance, Canadian Road Builders Inc. offers a mix called Vegecol that is made entirely from renewable, plant-based material and can be used on major roads as well as for walking and biking paths. Like Duraclime, Vegecol is manufactured at a cooler temperature, reducing its carbon footprint. As an added benefit, there are no petrochemical ingredients to contaminate run off water. Computer modelling: “The advances in roadbuilding are coming in engineering areas,” says Gene Syvenky, chief executive officer, Alberta Roadbuilders & Heavy Construction Association. Computer modelling is being used much more for designing structures, benefiting taxpayers and resulting in better performing roadways. “Using computer modelling for a structure like an overpass, for instance, is much more effective,” explains Syvenky. “Engineers can test ideas and you can instantly see the impacts, including the cost impacts, of changes.”

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COVER STORY

Water-saving pavement: Built using porous asphalt or pervious concrete, water-saving paved surfaces allow storm water to drain through the surface into a catchment area below. The products work well in parking lots, allowing owners to collect runoff and store it for uses such as on-site irrigation. “It’s very expensive for municipalities to treat water and irrigation may not be a very good use of clean water,” Bird says. “Porous asphalt also helps filter sediment out of runoff water, which is another benefit for municipalities.” Lafarge has used porous asphalt in trial projects in Calgary, including a demonstration section in the parking lot of the new water building. What’s not known is how the asphalt will handle Alberta winters. “With our winter sanding efforts, there is some trepidation as to how quickly the permeability deteriorates,” Bird says. “We just have to work out strategies for maintaining a porous parking lot.” Perpetual pavements: Perpetual pavements are designed to last around 50 years, compared to 20 years for conventional pavements. According to Uzarowski, the durability is due to the components of superiorperforming asphalts and the ability to model and analyze road systems before construction. “Fatigue cracking occurs when the tensile strength at the bottom of the asphalt exceeds the limit. So the trick with perpetual pavement is to design it from the bottom up,” Uzarowski says. Uzarowski and his team designed the first municipal perpetual pavement in Canada, the Red Hill Valley Parkway in Hamilton, Ont., constructed in 2007. The bottom layer is a rich bottom mix, a specially designed mix packed with asphalt cement that is basically indestructible, and therefore highly resistant to cracking. The middle and top layers are made of high-quality Superpave asphalt mixes that resist rutting, cracking and wear. “On the day the construction is completed the pavement will start to deteriorate. That’s normal,” Uzarowski says. “But if it’s a perpetual pavement, nothing will happen at the bottom and the majority of the pavement remains sound. Deterioration will occur at the top, but it’s easy to fix.” Repair work only has to be done every 20 years or so and, because it only involves milling and replacing the surface, it can be done overnight.

While they’re too expensive for low-traffic-volume roads, perpetual pavements are predicted to become increasingly popular for major roadways. Full-depth reclamation: Repairing roads has traditionally involved removing the old asphalt pavement and hauling it off-site for disposal. Full-depth reclamation is a repairing technique in which the old asphalt is mixed with the underlying gravel and the resulting asphalt/gravel combination is used to form a new road base. Mixing the asphalt into the gravel has been proven to produce a better-quality base material, saves the cost and environmental implications of removing the old asphalt from the site and reduces the amount of new aggregate used. Collaboration: It’s not a product or a road building technique, but it is affecting the quality of roads. “Industry partners—the roadbuilder group, transportation people from all levels of government, consulting engineers—are sharing information and best practices, and taking a much more collaborative approach in creating a solution,” Syvenky says. The result going forward is going to be better products and even more innovation.

7. 8.

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SUCCESSION PLANNING

Constructing the sale of your business

Build an exit strategy that ensures you are ready for a successful transition

ost contractors have built their businesses from the ground up, on their own terms and on their own timelines. When it comes time to think about selling, or executing a succession plan, having a strategy in place ensures you’re in control and gives you the ability to exit when the

timing is right. According to a recent Canadian Federation of Independent Business survey, two-thirds of small-to-medium entreprise owners are expected to retire by 2016. This same survey found that more than 52 per cent had no formal succession strategy. For those in the construction industry counting on selling their businesses to fund retirement or other future plans, the lack of an exit plan should be a major concern. “Contractors are busy running their businesses and they don’t take the time to sit down and plan a successful sale,” explains

Toronto-based Michael Walker, CF, national M&A strategist and leader, Construction Industry M&A for MNP. “But research has shown that you significantly increase your chance of success if you take the time to determine what ‘ready to sell’ means to you and to position your business for sale.” According to Walker, the majority of contractors don’t make exit planning a priority until a triggering event occurs. The most common of these triggers have been dubbed by the financial industry as the four Ds of exit planning: »» Death »» Disability »» Divorce »» Distress “Unfortunately there is usually little opportunity to adequately prepare for transition once a triggering event has occurred. By making exit planning a priority now, you can ensure that there is

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SUCCESSION PLANNING

an orderly transition of your business when the timing is right, not when an unexpected crisis forces your hand,” says Walker. Aside from events that are beyond your control, as a contractor you might be ready to transition your businesses if you find yourself concerned about: »» A shift in industry / family dynamics »» The need to further invest in your businesses »» Business demands on family or personal time »» Diversifying wealth or creating liquidity to fund retirement »» Not having fun at work anymore

‘Ready to sell’ is different for everyone Being ready to sell means examining your personal, business and financial goals as well as ensuring you are on the right path to achieve them. “In concrete terms, it means determining how much money you’ll need, when you’ll need it, and what additional steps you may need to take in order to achieve goals such as retirement, gifting to children, philanthropy or the financing of other business ventures. It also means planning for unexpected events in order to ensure that your family’s wealth and your personal legacy are protected,” says Walker. He cites the example of a client who was approached independently by a buyer with an offer before he’d taken the steps to understand the full value of his business. In the context of the market at the time and using conventional valuation metrics, it appeared to be an adequate offer. The business owner was about to sign a Letter of Intent when one of his trusted advisors suggested he speak with a consultant before moving ahead. The consultant undertook a strategic assessment of the business and, on their advice, the offer was declined. Tactics were changed and the business was repositioned for sale, putting the contractor in control of the process by identifying and confidentially approaching a limited number of qualified purchasers. The original bidder, now in a competitive situation, significantly increased its offer and the final price paid for the business was more than double the initial bid. In addition, the consultant and his team were able to provide deal structure alternatives that were favourable for the client’s personal tax situation. These greatly increased the proceeds received without changing the selling price.

Preparing your business for sale Being ready to sell and therefore in control of the sales process, both from an emotional and a financial-planning perspective, is only half the story. The business must also be ready for transition in order to achieve the best possible result. There are a number of steps in positioning your business for sale. These include: »» Determining the potential value of your business »» Examining exit options »» Developing appropriate strategies and transaction structure alternatives for a sale »» Identifying value enhancement and tax planning opportunities, including action plans for their implementation “Don’t be tempted to skip a step,” says Walker. “For instance, value enhancement and tax-planning strategies can have a profound impact on sale proceeds but often take time, in some cases years, to implement. Far too often, business owners risk missing out on these opportunities because they failed to seek the appropriate advice well in advance of a sale transaction.” Part of preparing your business for sale is gathering knowledge about the market and potential buyers. By knowing current market conditions and then getting into the mindset of your purchaser, you can tailor your efforts to highlight how the business meets their needs and objectives.

“Implement a gradual strategy to augment the management team, and hire your own replacement to shift sole responsibility away from you.” Worsel Vaughn, who worked with Walker to sell his business, says industry knowledge and relationships with potential buyers were very important and played key roles in helping him sell his business. Vaughn’s company was a typical local business. He made a quality product, understood his supply chain and knew the clients in his market very well. He also thought the best buyers would only be his local competitors. “We had a broader understanding of the market and knew he’d be limiting his options by keeping a local focus. We were able to bring larger regional and national players to the competitive environment and help create the kind of leverage that improves negotiations across the entire range of buyers. Ultimately he didn’t

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SUCCESSION PLANNING

sell to one of the bigger players, but he certainly benefitted from them being in the sale process,” explains Walker. Potential buyers of contracting businesses will ultimately look at the strength of the business fundamentals and the relative certainty of a seller’s future cash flow. There are a number of valueenhancement strategies that you can start to employ in advance with a view to maximizing value on a future sale. First, if the continued success of your business is tied to your personal leadership—and in most cases it is—enabling the management team to carry on successfully without you will be of immense value to a purchaser. “Implement a gradual strategy to augment the management team, and hire your own replacement to shift sole responsibility away from you. You should also begin to transfer key personal relationships with suppliers and customers, formalizing contracts where possible, so their value resides with the business when it comes time to sell,” says Walker. To ensure the loyalty of key employees, changes may be needed to incentives and employment terms. Signing key employees to employment contracts with confidentiality and/or non-competition clauses may reduce a purchaser’s risk, thereby increasing the potential for a higher purchase price. With careful management and planning you can ensure that employees stay focused on bottomline results so you don’t lose that hard-earned value come transaction time. Similar to cleaning and staging your family home for a sale, your business may need some housekeeping, too. Consider upgrading assets or removing those that may be redundant to the business and for which you may not see full value from a purchaser. “Stay one step ahead of the purchaser and deal with outstanding filings and remittances. Even if it means spending a bit of money to clean the slate, you should examine your contingent liabilities and

settle any disputes against your company before the sale process,” says Walker. Equally important are the consideration of tax strategies and implications of alternative transaction structures that will affect you personally after a sale or succession. Some strategies need to be planned years in advance; so in addition to a mergers and acquisitions advisor, include a qualified tax advisor on your exit-planning team to advise about tax structure options earlier rather than later. Many contractors are surprised to learn that informally restating your financial statements for a purchaser is an acceptable practice. By identifying some one-off items as well as irrelevant personal expenses, you present a more accurate picture of historical financial results of the business you are selling. Detailed financial projections should be prepared if significant future growth is anticipated.

is noW a good tiMe to sell? Timing can be a critical factor in achieving a successful exit. Some indicators that it might be a good time to divest the business, or possibly only a portion of it, are when: » Market conditions / business performance are attractive to potential buyers » Your business has strong fundamentals and opportunities for future growth » Solid incumbent management is in place » Your industry is viewed positively » The cost and supply of growth capital is reasonable » Valuations are favourable In today’s construction environment, it’s not uncommon to see large contractors acquiring smaller ones to position themselves in higher-margin sectors or to expand their geographic footprint. Construction projects are also becoming increasingly complex and owners and procurement requirements are increasingly demanding. Project risks are being pushed down to contractors, and there is much more competition for smaller and mid-sized jobs. “In combination, these factors suggest to us that the Canadian construction industry is in the early stage of consolidation,” says Walker. “As such, economic history has consistently shown that those first to market typically make the most successful deals.”

this article was contributed by MnP. Please send comments to editor@on-sitemag.com

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MARCH 2013

ROAD REPAIR

ONTARIO CONCRETE AWARD WINNER PAVES WAY TO SUCCESS

In this issue:

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Concrete faces increasing environmental demands

aterials supply companies are facing a new reality in ready mix. Similar to many standards, it outlines the scope and obtaining access to markets and meeting the demands limitations of the PCR as well as the boundaries for production, of the environmental consumer. Recent history has manufacture and supply of concrete in order to conduct the LCA seen limitations on the construction of buildings and on the product. Concrete boundaries are established from “cradle sites unless environmental assessments are conducted in order to to gate,” as the end use of the product has a myriad of functions measure the impact on the rehabilitation of a site or new constructhat may not be defined at the initial stages. A current PCR is valid tion. This assessment stage was viewed as an expensive requirement for five years, at which time it will be reviewed and updated. The that may or may not have provided future protection from liability PCR provides definitions and explains the International and North on the site. Today the paradigm shift focuses on material supply as American standards it complies with. It also defines what is not part of the environmental impact of any project. in the LCA boundaries for analysis. Another key component of the Certification programs such as LEED continue to raise awarePCR is the definition of units to measure the LCA. ness and the ready mixed concrete industry is taking a hard look PCRs are very complicated, but the simple explanation is once at how to address this new reality. Concrete producers are seeing a PCR is developed an EPD can be produced based on the relthe impact of restrictions on agevant sections of the PCR. EPDs gregate pits, moratoriums on the may vary somewhat with concrete “At this point contractors may be saying construction of concrete plants, mixes, depending on the materials this won’t impact me for quite a while, but wash-out restrictions and many used in the manufacture. An EPD more related to the consumer’s is similar to a nutritional label used the reality is that the next version of LEED demand for better environmental in food manufacturing, only it will 4.0 will be calling up EPDs next year.” stewardship at the jobsite and for outline such elements as global material compliance. warming potential, water use or The Canadian Ready Mixed Concrete Association (CRMCA) is smog formation. The unit of measurement will be a cubic metre keeping an eye on activities in North America that will present a of concrete. new reality in the marketplace for the sale and production of ready At this point, contractors may be saying this won’t impact me mixed concrete. Two new terms you will be seeing and hearing for quite a while, but the reality is that the next version of LEED about in the near future, if you haven’t already, are Product Category 4.0 will be calling up EPDs next year. Another huge initiative is the Rules (PCR) and Environmental Product Declarations (EPD). A key Architecture 2030 Challenge For Products. This calls on architeccomponent of both these elements is a Life Cycle Analysis (LCA). ture, planning and building industries worldwide to specify, design In order to better understand where these two new elements and manufacture products that meet specific carbon-reduction are coming from, we need to look at the development process. The targets between now and the year 2030. Carbon Leadership Forum is an industry-academic collaborative Clients are “driving the bus” on environmental impact and in effort that was hosted by the University of Washington’s College order to stay competitive, the concrete industry needs to adapt. of Built Environments. Their research is focused on developing CRMCA, on behalf of the industry, will be a key stakeholder in the data, analysis and standards needed to accurately predict, ensuring its members stay profitable, maintain markets and report and reduce the carbon impact of building materials and demonstrate their environmental responsibility to the rest of the products. The group has worked to incorporate LCA into industry’s industry, and the world. best practices in order to quantify the environmental impact of the built environment. In November 2012, they released the first PCR for concrete Provided by the Canadian Ready-Mixed Concrete Association. (http://www.carbonleadershipforum.org/). It essentially outlines the Send comments to editor@on-sitemag.com product standards for all concrete such as pre-cast, masonry and

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CONCRETE ON-SITE

A concrete future for road repair Project highlights fast-track concrete repair for pavement

BY ANDREW SNOOK

oad-maintenance projects are certainly not an uncommon site around the Greater Toronto Area, so the work that was done in September 2012 to repair the intersection of Courtney Park and Kennedy Road in Mississauga, Ont. would not seem unique to the average commuter. But in truth, this lane improvement project raised plenty of interest. Enough for the project to be nominated for—and win—the 2012 Ontario Concrete Award for Specialty Concrete Products, as well as an Ontario Public Works Association award in the field of disaster and emergency construction repair (under $2-million category). Why would a lane-improvement project garner so much interest? Two reasons—it was done with concrete and it was done fast.

THE PROJECT The City of Mississauga decided to go with concrete to repair a severely rutted section of asphalt pavement in a turning lane at the intersection of Courtney Park and Kennedy Road. The asphalt in the turning lane had been previously repaired in 2007 and 2010, so the city decided to try going with a concrete repair. The city was looking for a material that would offer longevity for the turning lane, which was next to a truck shop that produces high levels of truck traffic that create additional strain on the lane, according to Dave Morris, geotechnical and materials testing coordinator with the City of Mississauga’s Transportation & Works Department. “It seemed that for the last six years we were in there every other year, grinding and overlaying and nothing seemed to work,” said Morris. “Why go in there every few years and do asphalt repair?”

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CONCRETE ON-SITE

Concrete repair solved problems related to asphalt wear at a busy intersection.

A TIGHT TIME FRAME One hesitation the city had with using concrete for road repair was the potential for long closure times, particularly in high-traffic areas like Courtney Park and Kennedy Road, so this project had to be completed relatively quickly. The city proposed starting the reconstruction at 10 p.m. on Friday, Sept. 7 and reopening the road in the morning on Monday, Sept. 10. The city repair contract was awarded to Royal Ready Construction Ltd., which used its partner division, Royal Ready-Mix, as its material supplier. Due to time constraints a full engineering study could not be performed, so conservative designs were used for the project. It was decided that the entire 225 mm of asphalt would be removed and replaced with 35 MPa fibre-reinforced concrete. Royal Ready-Mix proposed using macro-synthetic fibres in the

concrete mix design as an added safety factor. The effect of the fibres on the mix design was verified through the use of Street Pave 12 software, developed by the American Concrete Pavement Association. The use of the fibres had the same effect as reducing the concrete cross-section to 200 mm. The reduction was not made but the fibres were still used to increase the concrete pavement’s structural capacity. “It gave [the concrete] an early increase of strength for the first three days. If there’s a crack, it holds the crack together, ” said Morris. “After 28 days, they don’t help increase the strength—the concrete takes over. But they do help keep the pieces together.” Tony Capobianco, president of Royal Ready Construction, said his company had previously used the fibres in commercial concrete paving projects. The tight time frame for the project proved to be the most challenging aspect, especially since the weather refused

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CONCRETE ON-SITE

Fibre-reinforced concrete meant the road could be opended sooner. LEFT: Length of road closures for necessary repairs were a concern. BOTTOM: Two sets of tests determined that it would have been possible to open the road ahead of schedule.

to cooperate. Rain was expected on the day of the concrete pour so the start time was changed from 10 p.m. on Friday, Sept. 7 to 10:30 a.m. the same day. “We did tie [traffic] up for that one period, but they don’t have to worry about that now for 20 to 30 years,” he said. Excavation of the asphalt sections took place from 10:45 a.m. to 3 p.m., with the concrete placement, finishing and testing performed from 3 p.m. to 6:30 p.m. Maturity Meter wires were installed for the last three loads of the concrete to establish when the lane could be reopened, in addition to the standard testing of temperature, slump and air content. The maturity testing concluded that 15 MPa was achieved at the eight-hour mark and 20 MPa at the14.5-hour mark. Capobianco said he was excited to hear that his company exceeded all expectations, especially after two separate testing companies performed strength tests. “The two independents strength tests they did were identical,” he said. “We were glad to hear the mix was consistent throughout.” Even though the concrete reached the necessary strength to open the lane ahead of schedule, the city elected to wait until Monday morning to open the lane since the traffic flow is lower on weekends and it wouldn’t affect traffic. Although the macro-synthetic fibres played a vital role in accelerating the strength of the concrete, it wasn’t the only important factor. “Two things have to come together,” said Capobianco. “Your labour force has to work in an expedited manner and the integrity of the concrete mix has to be right.” Not requiring help from outside sources for supply also helped, he added.

Morris said the contractor’s knowledge and experience were a great benefit to the project. “They understood what had to be done and they adjusted their time and procedures and manpower to fit the project,” he said. Morris said he hopes that this project will encourage the use of concrete in road-maintenance projects by municipalities. “This project may encourage future projects,” said Capobianco. “I think being able to turn the job over to them the next day is the key. I think it’ll help municipalities make their decisions in the future.”

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INNOVATION SPOTLIGHT STIHL introduces the new GS 461 Rock Boss™. a concrete saw with credentials to get the job done. Designed to square a corner or plunge cut a hole. This unit from STIHL will cut a wide range of materials including ductile pipe or reinforced concrete. at STIHL we have used everything that we know about chain saws and cut-off machines to create a concrete cutter that can handle even the toughest jobs. This new concrete cutter will make your work easier and complete the job quicker. Lightweight, easy handling, ergonomic design and efficient water usage are additional features of another high quality tool that you’ve come to expect from STIHL. There’s no need for complex and costly tool attachments and intensive manual work. The new GS 461 Rock Boss™ is the tool that you’ve been waiting for.

STIHL’S NEW CONCRETE CUTTER The new STIHL GS 461 Rock Boss™ is the one that you’ve been waiting for. It’s the perfect addition to STIHL’s #1 selling brand of cut-off saws. The beauty of the STIHL GS 461 Rock Boss™ is the cutting precision, such as contour, corner and hole cutting to a depth of 16”. This high cutting performance concrete saw reduces possible cutting errors and helps to save time on the construction site. Those concrete cutting jobs that require precision will be completed with ease. Delayed stratified scavenging engine Low emissions – reduces fuel consumption by up to 20% Excellent cutting performance – 30% better than competitors Improved air filtration with HD2 filter Cutting depth of up to 16” Specially designed STIHL RoLLomaTIC ® G Guide Bar and 36 GBm Diamond abrasive Chain

STIHL’s concrete cutter must be run with a water supply.

Includes water hose valve

NEW GS 461 ROCK BOSS

Displacement Power Output Weight Torque

76.5 cc 4.3 kW 8.2 kg / 18.1 lb 5.2 Nm

Innovation at work. For over 85 years, STIHL has been a world-class innovator in outdoor power equipment. German engineered products featuring the latest pioneering technologies make STIHL the market leader. STIHL products are only available at independent STIHL Dealers who provide expert advice and on-site service. Thank you for supporting the leading team and for making STIHL the Number 1 Selling Brand in Canada.

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* #1 Selling Brand in Canada is based on an independent market share analysis of imported gasoline powered handheld outdoor power equipment for the year 2012.

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WOC PRODUCTS

On a roll in Vegas BY CORINNE LYNDS World of Concrete (WOC) 2013 wrapped up at the Las Vegas Convention Center February 8th, surpassing all expectations in square footage and attendance numbers. Still the only annual international commercial construction trade show for the concrete and masonry industries, WOC attracted 54,869 professional registrants and showcased just over 1,300 indoor/outdoor exhibitors in more than 605,000 net square feet of exhibit space, an increase of more than 53,000 net square feet over the 2012 show. A hive of activity, this year’s show saw the launch of many new products, technologies and events; presenting more than 100 seminars in the Education and Certification Program; and provided networking opportunities for exhibitors and attendees.

“Optimism was evident throughout World of Concrete 2013 with positive results from exhibitors as well as attendees. We believe this upward trend will continue. Exhibitors were so pleased with WOC 2013 that we have already booked more than 60 per cent of the 2013 exhibit space for the 2014 show, said show director Jackie James. Also, our international attendance continues to grow as evidenced by the increased number of international delegations for WOC 2013.”

BUIlDIng Better rOaDS As this issue of Concrete On-Site is focused on roadbuilding, we scoured the show floor at WOC for the latest and greatest roadspecific products on display. Here are six of our favourites... page 46

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Equipment that pays off! Move your business forward with trusted Wacker Neuson products. The Wacker Neuson brand has a solid reputation for long service life, outstanding reliability, low operating costs and ease of use. With over 300 products spanning all phases of the construction process, we have the products and innovative technology to improve your bottom line.

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4.02.08 updated

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WOC PRODUCTS On a roll The Terex Bid-Well 4800 paves a variety of light-duty flatwork applications with ease and efficiency. More economical than slipform pavers and laser screeds, the 4800 automatic roller paver makes quick work of projects using wet concrete of 2.5-in. slump or higher, including port decks, urban development roads, sewage tank bottoms, warehouse floors and parking lots. The frame rides the rail on four heavy-duty, 6-in. diameter legs and eight bogie screed rollers, offering a 11.5-ft. total span. www.terex.com

Going back to rehab The GOMACO GT-3200 is a three-track paver designed for zero-clearance sidewalk rehabilitation projects. It can be equipped with a front-mounted adjustable aggregate base mould to spread the base aggregate for the sidewalk. During the first pass, rock is placed on grade and an auger spreads the material, while three pan vibrators mounted to the mould start the compaction process. The base mould is equipped with two heavy-duty hydraulic cylinders that provide 14 in. (356 mm) of hydraulic lift for setting the grade depth below the track line and raising the mould for the paving pass. www.gomaco.com

Intelligent paver The Wirtgen SP 80i concrete slipform paver paves sections of road up to 26-ft. wide. It can be set up as an offset SP 81i for very large sections, or as an inset paver with two-tracks (SP 82i) or four-tracks (SP 84i). The modular design of the SP 80i platform means any model can be reconfigured. The “i” designates these pavers as having “intelligent” power and emissions control systems. The SP 80i offers dowel and tie-bar inserters, finishing beam and super smoother.   www.wirtgen.de

Ahead of the curb The PCM 7500 from Phoenix Curb Machines is a mid-size curb and gutter machine. Robust and portable at 9,450 lb, it competes against bigger machines, yet is nimble enough for rehab work in tight spaces. It is easy to transport behind a 1-ton pickup, has a full-size carbide-tipped trimmer, Kubota diesel engine, TopCon Sonic 5 and expandable hopper. It grades and pours around tight radii, pours up to 24-in. curbs and pours below grade too. www.phoenixcurbmachines.com

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POWER PREVAILS. STRENGTH ENDURES. Mack is proud to partner with

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It takes a lot of power to put up a building, but it’s how our Mack® Granite® stands the test of time that really matters. From its heavy-duty frame to its powerful, yet fuel-efficient, MP™ engine, Granite has the strength to build nations. Because in this business, one thing is certain — only the strong survive. LIVE BY THE CODE. DRIVE BY THE CODE. MackTrucks.com

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WOC PRODUCTS

take it fOr a SPin Allen puts a new spin on concrete paving with the RS800 Series RollerScreed. Whether it’s highway panel replacements, white topping or airfields, these new machines claim to improve efficiencies and reduce cost. The RS800 has a 32-hp Kubota diesel engine, paves widths between 12 and 32 ft and has an 8-in. diameter paving tube. These machines also come with an optional spray system, manual crank lift jacks with foam-filled tires and optional hydraulic lift jacks also with foam-filled tires. www.alleneng.com RoTo 45.21 Classic

curb aPPeal The Power Curber 5700-C is a slip-form concrete paver designed primarily for pouring curb, curb and gutter, sidewalk and barrier wall. When fitted with additional moulds,

UneQUalled aGiliTY and PerFormance The only telehandler designed and built to outperform all lifting methods Increase of your productivity by 20% to 50% Best fuel economy of the industry

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P40.17

the paver can be adapted to pour concrete in a variety of applications including golf cart paths, foundations for dairy and poultry barns and stadium risers. The machine’s most popular features include an auger conveyor, tight radius steering capability, and the ability to pour from the left or right side of the machine. The 5700-C’s flexibility allows contractors to pour applications ranging from tight radii on parking lot islands, to large highway barrier wall, to 10-ft. wide concrete paving. www.powercurbers.com

R38.16 S

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merlo in canada: from coast to coast! QUeBec manulift Quebec City, (418) 651-5441 Varennes, (450) 652-5550 Garage Émile larochelle inc. Saint-Isidore, (418) 882-5654 Équipements r.m. nadeau Sherbrooke, (819) 846-6828 les entreprises antonio laporte & Fils inc. Notre-Dame-des-Prairies, (450) 756-1779 centre Kubota des laurentides Mirabel, (450) 434-0000 location Blais Rouyn-Noranda, (819) 797-9292 maniToBa Bobcat of central manitoba ltd. Winnipeg, (204) 633-1058

onTario manulift Burlington, (905) 315-8881 corbeil equipment ltd. Curran, (613) 673-5184 Hutchinson Farm Supply inc. Stouffville, (905) 640-2692 delta Power equipment Essex, (519) 776-7374 Exeter, (519) 235-2121 Forest, (519) 786-5335 Watford, (519) 849-2744 Stoltz Sales and Service Listowel, (519) 291-2151 Mildmay, (519) 367-2672 Elmira, (519) 669-1561 GJ’s Farm equipment inc. Burgessville, (519) 424-9374 anderson equipment Sales Belleville, (613) 969-6246

SaSKaTcHeWan e. Bourassa & Sons Assiniboia, (306) 642-3826 Estevan, (306) 634-9444 Pangman, (306) 442-2033 Radville, (306) 869-2277 Weyburn, (306) 842-6626 meadow Power & equipment ltd. Meadow Lake, (306) 236-4455 alBerTa manulift Langdon, (403) 936-8668

nieboer Farm Supplies Nobleford, (403) 824-3404 edmonton Kubota Edmonton, (780) 443-3800 Kubota country Fairview, (780) 835-5515 BriTiSH colUmBia meinen Brothers agri Services Agassiz, (604) 796-3820 neW BrUnSWicK Valley Sales & Service ltd. St-André, (506) 473-3439

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LOADERS From Komatsu - The Loader Experts

The WA380-7 Tier 4 Interim Wheel Loader is a class leading performer with improvements in production, fuel efficiency, operator comfort and serviceability. • Komatsu Smart Loader Logic reduces fuel consumption while maintaining production. • Large capacity torque converter with lock-up provides 10% fuel savings. • New 7” LCD multi-function monitor panel provides easy access machine diagnostics. • Komatsu CARE provides complimentary Tier 4 maintenance, including Komatsu Diesel Particulate Filter exchange. Contact your Komatsu distributor for details.

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13-03-12 4:40 PM

RISK By David Bowcott

The problem with insurance

ome of you may think there are several problems with insurance, but for the purposes of this article I’m going to focus on one problem that relates to construction projects and the operations of those projects after substantial completion. What I am referring to is fragmentation. The insurance industry offers several separate products that cover various risks. As insurance evolved, the industry started excluding risks under policies with broader covers. Then, these excluded risks became separate policies onto themselves, with separate underwriting disciplines. It has evolved to the point that there can be more than 15 lines of cover involved in managing the risk of a single construction company. The following is a sampling of some of those covers:

Practice Covers »» P roperty insurance (real estate, office contents, etc.) »» Contractor’s equipment »» Employer’s liability »» Professional liability »» Pollution liability

Project-specific covers »» B uilders’ risk/course of construction (Property for the project) »» Wrap-up general liability »» Surety bonds »» Subcontractor default insurance Note: These are just the covers that directly relate to the construction phase of an asset’s development. There are also covers in place during construction and after construction that are procured by the owner.

“There can be more than 15 lines of cover involved in managing the risk of a single construction company.”

So, we have singular risks and multiple covers. If the world were black and white, this could be a sustainable way to manage risk. As we all know, risks are rarely ever simple and therefore it is time for the insurance industry to consider revamping the design of the product offerings. As an example, let’s look at a defect issue and the risk tools potentially involved to resolve the impact created from the defect. A defect is either caused by faulty design or faulty workmanship (either workmanship in installation or workmanship in material manufacturing). Immediately, this brings into play potentially seven policies: the design firm’s practices professional, the contractor’s professional, the project’s professional, subcontractor default insurance, subcontractor surety bonds and prime contractor surety bonds as well as subcontractor/ supplier insurance covers. Further, the defect may have caused damage. This damage, in the construction phase, should be covered under the Builders Risk policy. Or, if the damage occurs after construction, project-specific or practice-liability policies of the contractor could come into play (in addition to the owner’s property policy). So we have more than 10 policies potentially involved. I think you get my point on the problem with fragmentation of cover. Risks rarely manifest in a black-and-white manner— they are quite frequently grey. Insurance policies are, to some degree, designed to cover black-and-white risk issues. As a contractor, you need to ensure you take the following measures to manage the risk facing your balance sheet optimally:

Know the likelihood and impact of risks facing your project, company, directors, officers, shareholders and employees. Know how those risks have been allocated based on the contracts you entered into. Know all the tools available to manage risk (don’t limit this to insurance—think of risk controls, bank instruments, capital market solutions, contractual transfers, etc.) Know how each of these risk tools needs to be integrated to manage risk. As mentioned, risks will not always be covered by one risk tool. There will often be multiple risk tools involved, so ensure they integrate without leaving coverage gaps. Know how quickly these tools respond in order to manage the cash flow impact to your project effectively. Ensure you have top-level risk advisory services that have the battle scars to ensure you gain maximum solution in the event risks manifest within your company or on one of your jobs. The insurance industry provides an invaluable service to the development and operations of assets. The products it designed are critical to our economy. Several within the insurance industry recognize that fragmentation is of major concern. Those leading insurance companies are looking at ways to better integrate their solutions in order to accommodate the grey world we live in. Pay close attention to these evolutions, they could mean the difference between the success and failure of your company. David Bowcott is senior vice-president, national director of large/strategic accounts with AON Reed Stenhouse Inc. Send comments to editor@on-sitemag.com

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Don’t miss a single issue! STOP Don't do anything else until you've renewed your FREE subscription to On-Site! Simply visit on-sitemag.com and click on “Subscriptions”

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On-Site weekly has been optimized for your hand-held device! Our recently commissioned survey showed a significant increase in the number of e-newsletters being opened on handheld devices. Just like the magazine you’re reading, On-Site weekly wants to keep you ahead of the curve - digitally. To make sure that you don’t miss a single news item we have redesigned our e-newsletters so that you can stay up-to-date in the office and on the job site. In

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addition to the most current construction news On-Site weekly features products, video interviews and, of course, our famous Funny Photo contest. If you are not currently receiving On-Site weekly simply visit our website at on-sitemag.com and click on SUBSCRIBE – then Free e-newsletter it’s that simple!

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FUNNY PHOTO

SEND US YOUR FUNNY PHOTO CAPTIONS and if we think you’re the funniest, you will be the winner of a limited-edition die-cast model of a Mack Truck. (Comparable alternative model may be awarded.)

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ALLISON TRANSMISSION ................. www.allisontransmission.com/productivity ....17

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52 / March 2013

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13-03-12 4:34 PM

CONTRACTORS & THE LAW By Matthew Swanson and David Claassen

Pick your Battles: Is ADR Right for You?

o party enters into a contract with the intention of getting embroiled in a lengthy legal dispute, but disputes happen, and they can be costly. In recent years, processes for resolving disputes without recourse to traditional litigation, (dubbed “alternative dispute resolution” or “ADR”) has become increasingly common. Mediation and arbitration are the most common examples. For many, the perception is that ADR is more efficient than traditional litigation. It’s perceived as a better way to resolve disputes because it is confidential and less adversarial. While ADR is a valuable dispute resolution tool, the perceived benefits or promises are sometimes unfulfilled.

Is ADR really more efficient? It is often suggested that ADR is faster and less expensive than litigation. Proponents also note that outcomes in ADR can be more predictable because the parties choose who decides their dispute—a person who is respected by both parties and that has experience in the subject matter. In many instances, ADR provisions require the parties to progress through a tiered dispute resolution process. This can involve mandatory mediation and, if the matter does not settle, arbitration. Mediation may be a valuable too, but it is not necessarily right for every case. Mediation requires participants who are willing to compromise their claims and if the parties are not willing to do so, mediation may simply slow down the dispute resolution process and add unnecessary cost.

If matters advance to arbitration, some participants proceed as if arbitration were a court proceeding. This happens because they adopt the same procedures and discovery mechanisms that are available and required in Superior Court litigation. In these situations, the parties effectively replace a publicly funded dispute resolution system with their own privately funded system where they pay for an arbitrator. In doing this, the parties can actually increase their costs.

“Complicated disputes are seldom limited to two parties. Disputes often give rise to counterclaims and there may be a need to make claims against other parties.”

Does ADR accommodate third party claims? Complicated disputes are seldom limited to two parties. Disputes often give rise to counterclaims and there may be a need to make claims against other parties. Despite this fact, ADR does not always present a viable option for making claims against third parties. This may force a multiplicity of proceedings and raises the potential for expenditures that would not normally be required in traditional litigation.

Is ADR really confidential? ADR may be well suited to resolving disputes that the parties wish to keep confidential. It is standard practice

for parties to mediations to hold all information and discussions confidentially and, with respect to arbitrations, the parties generally assume that they are confidential. Unfortunately, this assumption is not always correct, and in order to achieve the desired level of confidentiality, the parties may need to negotiate a confidentiality agreement. In addition, the parties must be aware that at any stage of ADR, one party may seek recourse to the courts for relief. This could include adjudication over the appointment of an arbitrator, challenges as to whether ADR is appropriate in the circumstances, and the recognition and enforcement of an arbitration award. These sorts of proceedings place confidentiality at risk because evidence will have to be placed before the courts.

Is ADR right for you? At the contracting stage, the parties need to consider what types of disputes may arise and then decide whether traditional litigation or ADR will be favoured. ADR may be the preferred route for some or all of the disputes that arise, but this needs to be carefully considered along with how the process will unfold. When this is not done, the parties could later find that they have adopted an unworkable or impractical dispute resolution framework. This article is for information purposes only and may not be relied on for legal advice.

Matthew Swanson and David Claassen are lawyers at Borden Ladner Gervais LLP. Matthew practices in the area of commercial litigation with an emphasis on contract and construction disputes. David also practices in the area of commercial litigation. Send comments to editor@on-sitemag.com

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Scan this QR code to see Cat Truck owners share their experiences. © 2013 Caterpillar Inc. All Rights Reserved CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

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13-03-13 11:06 AM