On-Site October 2013 by Annex Business Media

OCTOBER 2013

LAW

Are thieves robbing you blind?

KEEPING WHAT’S YOURS

CHANGE ORDERS MATTER

pg.50

> IN SIDE <

VOCATI13 TRUCKS ONA L REP PG.22 ORT

PG.34

MAJOR BRIDGE OVERHAUL

ON THE ROCK pg.16

RISK

PLANNING FOR SUCCESS pg.46

www.on-sitemag.com

001-02Cover1.indd 1

PM #40069240

13-10-17 4:06 PM

001-02Cover1.indd 2

13-10-10 2:04 PM

VOLUME 57, NO.6 / OCTOBER 2013

COVER STORY 34 Keeping what’s yours Are thieves robbing you blind? Here’s how to protect your jobsite and construction materials

DEPARTMENTS 5 Comment Honorary archeologists

News Industry news

14 Construction Stats The latest news on building permits and construction employment

48 Funny Photo

Funny Photo contest

COLUMNS 44 Software Engaging the programming trade

46 Risk Planning for success

50 Law Change orders matter

Index of Advertisers

features 16

Thanks to a hefty investment by the provincial government, more than a dozen bridges are being replaced or rehabilitated.

On-Site asks five manufacturers what’s top-of-mind for their customers and how they are responding to those demands.

Greater fueling infrastructure and increased strength make natural gas-powered vocational trucks a viable option for Canadian operators.

Major bridge overhaul in Newfoundland

2013 vocational trucks report

A second look at natural gas

on-sitemag.com / 3

3-4_contents.indd 3

13-10-10 2:40 PM

3-4_contents.indd 4

13-10-17 3:49 PM

COMMENT

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

PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com ASSISTANT EDITOR | Patrick Callan (416) 442-5600 x3524 PCallan@on-sitemag.com CONTRIBUTING EDITOR | James A. Barnes ART DIRECTOR | Melissa Crook (416) 442-5600 x3260 MCrook@bizinfogroup.ca ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@bizinfogroup.ca PRODUCTION MANAGER | Barb Vowles 416-510-5103 BVowles@bizinfogroup.ca CIRCULATION MANAGER | Selina Rahaman (416) 442-5600 x3528 SRahaman@bizinfogroup.ca 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 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 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 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.

Honorary archeologists

xcavation contractors need to update their resumes. Besides the usual qualifications such as “ability to cut grade quickly” and “10 years experience,” they need to add: honorary archeologist to the list. Headless corpses, remains of royalty, ancient civilizations and lost temples have been found on construction sites around the world. It has been a big year for England, the remains of King Richard III were dug up in a parking lot in Leicester. And a mass grave of headless Vikings was excavated in Dorset. At least one contractor in California will quickly confirm, you never know what you might dig up. Back in February, in Laguna Canyon, workers dug up whale fossils, including four previously undiscovered species. In Bali, Indonesia, workers discovered remnants of an ancient building from the 13th to 15th centuries, thought to be the foundation of a Hindu temple, possibly the largest yet discovered. Here in Canada, we’ve dug up dinosaur fossils and human remains in the last two months alone. A backhoe operator in Alberta nearly destroyed a scientific treasure potentially millions of years in the making. While using a backhoe to clear a site for Tourmaline Oil Corp., the worker uncovered a 32-ft. long section of a dinosaur tail. Initially, the operator thought he had chipped off some rock, but when he noticed the distinctive vertebrae, he stopped work and called in the experts. Paleontologist Matthew Vavrek inspected the discovery and was amazed at the fossil’s preservation. “The last time I’ve seen something like that was in a museum.” According to experts it could take years to identify what type of dinosaur the tail belonged to. A more common find on construction sites is that of human remains. Creepy factor aside, it’s also a major cause of project delays. A good example of this happened just last month in Ottawa. Work on one of the oldest water main pipes in the city remains on hold after bones were uncovered. Police forensic experts have confirmed the bones are human and likely part of a historic burial site. The list of weird and wonderful construction site discoveries goes on and on. As far as I’m concerned excavation contractors are the unsung heroes of the archeological world. If you have discovered something interesting on one of your job sites, I would love to hear about it. Email editor@on-sitemag.com.

Corinne Lynds / Editor CLynds@on-sitemag.com

MEMBER OF

Canadian Construction Association

5_Comment.indd 5

on-sitemag.com / 5

13-10-10 2:33 PM

INDUSTRY NEWS

Demolition and excavation are scheduled for 2015 pending approval from the Halifax Regional Municipality, and construction will take place from 2015 to 2018.

SNC-Lavalin aims to restore tarnished reputation SNC-Lavalin is ramping up efforts to eliminate shoddy business practices after several high-profile corruption scandals landed the company and 114 of its

Mega downtown development project tabled for Halifax The Thiel family has released plans to modernize a quarter of downtown Halifax while incorporating some of its architectural and historical past. The downtown Halifax property owners and developers intend on transforming the 500,000-sq.-ft area bordered by Granville, George, Hollis and Duke streets into a boutique hotel, condominiums, restaurant; office, retail and public spaces, and underground parking. The twin tower development will be called “22nd Commerce Square” in reference to the Canadian Bank of Commerce (the original name of the block’s historic Merrill Lynch Building built in 1906), and because of its forward thinking or “next century” design. 22nd Commerce Square will be built to LEED Platinum standards to include several environmental features such as high-performance, high-efficiency, lowemission mechanical systems; geothermal heating and cooling, a heat-recovery system that draws energy from sewage waste, photovoltaic panels on the hotel’s façade, solar hot water panels on the roof, a rain water collection system and raised-floor technology for better climate control.

affiliates amongst the World Bank’s top 250 blacklisted firms. The Montreal-based company announced it is quickly making progress toward its goal of implementing a company-wide ethics and compliance framework. In a media release, president and CEO of SNC-Lavalin Group Inc. Robert Card highlighted six initiatives launched in 2013 to “reassure stakeholders that our commitment to ethics and compliance excellence continues to be unwavering.”

CN denies fraud allegations made by former employee

construction projects for GO Transit

CN released a statement rejecting

ment process: project scoping and

allegations by a former employee that

definition, contractual agreement

it defrauded GO Transit on commuter

on fixed prices, on-site construction

rail infrastructure projects in the

monitoring and post-completion

Greater Toronto Area.

inspection and final payment.

Scott Holmes, former program

would be completed on a fixed-price basis and that there would be four steps in the construction manage-

“CN is deeply concerned with alle-

supervisor for CN based in Toronto,

gations of financial improprieties in

claims GO Transit was unaware CN

connection with its work on behalf

was installing previously worn track

of GO Transit since 2004,” said Sean

materials as part of the contract to

Finn, CN’s executive vice-president of

expand rail capacity on the agency’s

corporate services and chief legal of-

Lakeshore West Line.

ficer. “CN and GO Transit developed

He accused CN of billing GO Transit

a rigorous construction manage-

and Ontario taxpayers for network

ment process that assured financial

improvements that were unnecessary

integrity, cost certainty, quality

for commuter rail, including under-

work and strict oversight.”

cutting the overpass at Snake Road to facilitate CN freight trains. And he says CN billed GO Transit for unrelated expenses such as hotel rooms outside of the Lakeshore West project area. CN strongly refutes the allegations and has filed a lawsuit in the Ontario Superior Court of Justice against Holmes, suing him for misappropriated funds. CN claims both sides agreed the

6 / October 2013

News.indd 6

13-10-10 2:51 PM

INDUSTRY NEWS from page 6 • An anti-corruption manual for SNCLavalin’s 34,000 global employees. • A new policy governing engagements with business partners. • The appointment of compliance officers. • Personal compliance training for all employees. • Third-party validation. • An amnesty program launched between June 3 and Aug. 31.

Skills Canada campaign focuses on essential trades skills Skills Canada is promoting the importance of essential skills for young trades people in a national awareness campaign. The nine essential skills campaign highlights the basic skills, as identified by Employment and Social Development

Canada, that are used in almost every job: numeracy, oral communications, teamwork, continuous learning, reading text, writing, thinking, document use and digital skills. A recent Ipsos Reid survey done for ABC Life Literacy Canada shows that 74 per cent of Canadian employers consider essential skills as “strategically relevant to their business.” “We recognize the impact of current demographic shifts on skilled labour and are taking steps to ensure that we continue to provide a skilled and professional workforce for our membership,” said John Telford, director of Canadian Affairs, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry (UA). With a membership of over 300,000, the UA is one of the largest employers of

apprentices in Canada and a sponsor of Skills Canada. “We place an extremely high value on the importance of skills training and education, and through partnerships with industry and organizations like Skills Canada, it is our goal to continue to meet rigorous standards of service excellence within the skilled trades,” he said.

Montreal to get 5 new subway stations The Government of Quebec announced it will spend $1.5 billion to extend one of Montreal’s subway lines by five stations. The new stations will add more than six kilometres to the blue line in the city’s east end, with an anticipated cost of about $250 to $300 million per kilometre, according to a Globe and Mail report. Construction is slated to begin in two years once the financial details have been hammered out between the provincial government and Montreal’s regional transport agency. A project office with a $38.8-million budget is being set up to map out construction of the additions to the Métro de Montréal—Canada’s second busiest subway system. The yellow line to the south shore is expected to be the next in line for an extension. The most recent extension took place in 2007 when three northbound stations were added to the orange line for $748 million. The Métro also has a fourth “green” subway line, which runs east and west and is south of the blue line.

8 / October 2013

News.indd 8

13-10-10 5:05 PM

News.indd 9

13-10-10 2:51 PM

INDUSTRY NEWS

PCL to invest $1M in skills and trades training in Alberta

News Briefs

PCL Construction will be providing $500,000 to both the NAIT in Edmonton and SAIT Polytechnic in Calgary to support trade and skills training in the province. “We are committed to supporting the education and training of skilled workers in all the places where we build in Canada, the United States, and Australia,” said Paul Douglas, PCL president and CEO. The $500,000 provided to SAIT Polytechnic will be allocated to the renovation of the Thomas Riley building and the SAIT Opportunities Fund. SAIT Polytechnic is known for innovative applied research and development activities and boasts 82 certificate, diploma and applied degree programs, two baccalaureate degree programs, and 30-plus apprenticeship programs.

is spending $360 million to redevelop and expand Ottawa’s Rideau Centre shopping mall. Redesigning the 30-year-old Rideau Centre will make room for retailers Simons, Nordstrom, Victoria’s Secret, J. Crew, and allow the Harry Rosen store to be transformed into a flagship location. A four level expansion will add 230,000 sq. ft. of leasable space and a three level underground parking garage. Construction runs until 2016 and the Rideau Centre will be open for business during redevelopment. >> Three Alberta-based Wood Group companies—IMV Projects, Wood Group PSN Western Canada and Mustang Canada—are merging to create Wood Group Mustang’s new presence in Canada. The merger will increase the company’s engineering, procurement and construction management (EPCM) capabilities in the Canadian and North American energy services markets. >> Acrow Bridge is supplying AV Group New Brunswick with a 79-m clear span bridge for logging operations. When installed, the prefabricated modular steel bridge will be the longest clear span vehicular bridge Acrow has ever supplied in Canada. It will be capable of spanning securely across the river below without needing to place support piers, which are vulnerable to structural damage when exposed to river ice flows, in the water. Delivery of the steel bridge components is scheduled for the fall. Because of the modular design of the components, bridge assembly and installation will be quick and easy. >> Bobcat Company has expanded its dealer network with the addition of an authorized sales, service and rental provider of equipment in Nobel, Ont. The Bobcat of Parry Sound dealership opened on Sept. 9 and offers a range of equipment such as skid-steer loaders, compact track loaders, compact excavators and utility vehicles. The dealership is located at 25 Woods Rd. in Nobel, Ont.

>> The Cadillac Fairview Corporation Ltd.

NAIT will designate the $500,000 to capital infrastructure, allowing the institute to grow capacity and increase training spaces. NAIT has approximately 140 credit programs leading to degrees, applied degrees, diplomas, and certificates.

INDUSTRY LEADING CONSTRUCTION SOFTWARE THAT INTEGRATES WITH YOUR ACCOUNTING SYSTEM.

    

Estimating

Dispatching

Safety

GPS

Job Costing

Equipment Maintenance

Fuel Tracking

Cloud Hosting

Used by 40,000 construction professionals World-class 24/7 instant customer support Construction-friendly desktop & mobile apps Proven processes for implementation Low risk—Software comes with a 12-month money back guarantee!

Mobile Apps

Innovative

Software

for the Construction Industry

800-683-3196

at www.HCSS.com/On-Site

10 / October 2013

News.indd 10

13-10-10 5:05 PM

T L

News.indd 11

13-10-17 3:52 PM

INDUSTRY NEWS

Alarming number of workplace deaths leads to safety blitz BY PATRICK CALLAN Nine Ontario workplaces deaths since June has prompted the Ministry of Labour to launch a province-wide “fall safety blitz” of construction sites until the end of October. The focus is on workers’ safety at heights, sloped roofing at low-rise residential construction sites and after hours inspection. The goal is to promote awareness and ensure safety standards set out in the Occupational Health and Safety Act are being followed. Ontario’s Minister of Labour Yasir Naqvi said workplace safety is the number one priority. “We are working hard to ensure that both employees and employers know their rights and are fulfilling their responsibilities,” he said. Since 2003 workplace injuries have declined by 30 per cent, he said, but there is still much more work to be done. “Fall-related fatalities this summer drive that point home,” he said. The key, he said, is to be proactive. That’s why in addition to educational programs, construction sites across Ontario are being checked to make sure employers are providing safe workplaces, and that those working on ladders, mobile stands and platforms are being properly trained and supervised. Employers who fail to do so will be held accountable to the full extent of the law, he said, citing a landmark Toronto case from 2009 when four workers died and a fifth was critically injured after their scaffolding broke 13 floors above the ground. It was the first time a firm in Ontario

had been convicted of criminal negligence. Naqvi said the company, Metron Construction, was charged under the Occupational Health and Safety Act and initially received a fine of $250,000, however the Ministry of Labour appealed the decision and managed to get it increased to $750,000. “The court was very clear that these types of accidents are preventable and if the rules and regulations that are outlined in the Occupational Health and Safety Act are not met, then there will be hefty fines to be paid,” he said. Through traditional and social media, the Ministry of Labour is working to

educate not only employers and employees, but also the general public about the dangers that exist on construction sites. “At the end of the day this is about keeping workers safe,” he said. Naqvi is encouraging citizens to report any unsafe practices they see taking place at either residential or industrial construction sites to the Ministry of Labour. “I think it’s extremely important that people remain vigilant to protect workers,” he said. “One fatality is one too many.” George Gritziotis, chief prevention officer, also expressed his disappointment with the spike in the numbers of fall-related deaths in Ontario this summer. “What is even more disturbing is that falls are one of the most common workplace tragedies,” he said. Preventing injuries and fatalities requires workplace partnerships to support awareness and education programs, as well as appropriate enforcement, he said. Education about rights, responsibilities and best practices is the first step towards improving workplace safety. There are many free resources available online regarding awareness training requirements and the Ministry of Labour will soon be unveiling a “Working at Heights Training Program Standard” this fall. “We cannot achieve the goal of safe workplaces alone,” he said. “The recent workplace fatalities are a painful reminder to us that we—each and every one of us— must take direct, personal responsibility for prevention, regardless of where we work.” For more information about workplace safety visit www.labour.gov.on.ca

top

12 / October 2013

News.indd 12

13-10-10 2:52 PM

News.indd 13

13-10-17 3:54 PM

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

$ billions 8.2 7.8 7.4 7.0 6.6 6.2 5.8 5.4

Building permits down in August

5.0

Canadian municipalities issued building permits worth $6.3 billion in August, down 21.2 per cent from July. This decline followed a 21.4 per cent increase the previous month and was the result of lower construction intentions in both non-residential and residential sectors. With this decline, the trend in the value of building permits has become relatively flat since the beginning of 2013.

4.6 4.2

Seasonally adjusted

3.8 3.4 3.0

J 2008

2009

2010

Trend

2011

2012

A 2013

Note(s): The higher variability associated with the trend-cycle estimates is indicated with a dotted line on the current reference month and the three previous months.

Productivity and real output of Canadian businesses grow at the same pace

Labour productivity up in the second quarter

quarterly %change 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5 -4.0

III

2009

III

2010

Labour productivity

III

2011

III

2012

Real gross domestic product

Construction employment up in August Employment increased by 59,000 in August, mainly in part-time work, and the unemployment rate declined 0.1 percentage points to 7.1 per cent. Over the six months to August, employment gains averaged 12,000 per month, lower than the average of 29,000 observed during the preceding six-month period. Construction employment rose in August, offsetting a decline in July.

Labour productivity in Canadian businesses rose 0.5 per cent in the second quarter, after edging up 0.1 per cent in each of the previous two quarters. Hours worked in the business sector were unchanged in the second quarter, after increasing 0.5 per cent in the previous quarter. A 0.4 per cent gain in hours worked in service-producing businesses was offset by a 0.8 per cent decline in hours worked in goods-producing businesses. The extensive flooding in Southern Alberta and the construction strike in Quebec in the last two weeks of the second quarter resulted in a 0.2 percentage point reduction in the quarterly change in hours worked.

2013 Hours worked

Employment thousands 17,900 17,700 17,500 17,300 17,100 16,900 16,700

Source: Statistics Canada

16,500

A 2008

J 2009

J 2010

2011

J 2012

A 2013

14 / October 2013

14_Stats.indd 14

13-10-10 3:12 PM

January 21-24, 2014 ★ Seminars: January 20-24, 2014 Las Vegas Convention Center ★ Las Vegas, Nevada

A ★

TRADITION

★

World-Class E ducation ★

1995

1975

1985

Here’s to 40 years of big ideas. And 40 more of bigger possibilities. For decades, World of Concrete has provided an education program specifically designed for the concrete and masonry professional. Now in its 40th year, World of Concrete offers more than 100 sessions across targeted tracks in 90-minute, 3- and 4-hour formats, with continuing education opportunities, as well as hands-on training and workshops. Take advantage of these world-class opportunities to elevate your career and increase your bottom line.

A selected participant in the International Buyer Program

www.worldofconcrete.com Source Code: OS

14_Stats.indd 15

13-10-10 3:12 PM

BRIDGES

MAJOR BRIDGE OVERHAUL in Newfoundland Provincial government dishes out handful of tenders to revamp infrastructure

PATRICK CALLAN

he future of transportation in Newfoundland appears to be on solid ground thanks to a hefty investment by the provincial government to replace or rehabilitate well over a dozen ailing bridges as part of its overall infrastructure improvement strategy. Promising to follow through on a lengthy list of priority projects for 2013, Newfoundland’s Department of Transportation and Works has handed out a number of tenders for bridge work this year, including six in July. With a combined contract value of more than $3.5 million, the recent tenders will see Main Point and Gull Island bridges replaced, while several others are being rehabilitated: Big Sandy

River, Parsons Pond, North Harbour River, Little Salmonier River, Horwood River and Curtis Causeway. Earlier this year, a $40.6-million contract was awarded for a new lift bridge in Placentia, and tenders were issued for Outer Cove Brook, Lilly Pond and Epworth Timber bridges. But the list doesn’t end there. Tenders have been called to replace the English Harbour Bridge with a single lane 36-metre single span panel type bridge; the Traverse Book Bridge, which calls for a two-lane, 36-metre concrete girder bridge; and construction of new approaches to the Sir Robert Bond Bridge. And replacement of three others—Barry’s Brook, Shoe Cove

16 / October 2013

16-21_Bridges.indd 16

13-10-10 12:46 PM

BRIDGES

Construction workers are busy replacing the wooden Main Point Bridge in Newfoundland with a two span multi-plate culvert.

North and O’Donnels bridges—are planned and tenders will be called later in the year, says Transportation and Works Minister Paul Davis. “Bridge replacements and repairs play a significant role in our overall infrastructure improvement strategy,” he says. So far this year $32 million has been invested in bridge works, and over the past four years, more than $107 million has been spent on repairs to 105 structures. Davis says the provincial government’s spending will exceed $866 million on infrastructure projects in 2013: helping to fuel local economies, companies and communities. The projects have created 5,330 person years of employment,

and the revenue generated will be invested in all regions of Newfoundland and Labrador’s roads, bridges, marine services, health, education, municipal works, buildings and aquaculture.

NEW LIFT BRIDGE IN PLACENTIA The provincial government’s largest single investment in a bridge project this year—$20.6 million—went to replacing the Sir Ambrose Shea Lift Bridge in Placentia. The work is being carried out through a joint venture between H.J. O’Connell Construction Ltd. and Vancouver Pile Driving Ltd. The contract was awarded in March, work began in May and the entire project will be complete in the spring of 2016. There are

on-sitemag.com / 17

16-21_Bridges.indd 17

13-10-10 12:47 PM

BRIDGES

currently eight staff and 13 craft workers working on the project, which is in the procurement phase. Darryl Gillingham, director of operations at H.J. O’Connell, explains the extent of the work involved in the project: “The first thing we had to do was mobilize the site and then demolish existing boat buildings and houses,” he says, which took about two weeks. The next step was securing materials, mostly to build two temporary trestles: one on the north and one on the south to be able to access the center piers. That will allow workers to maneuver a 150-ton crane on top of the trestle to access the center piers to do the piling, concrete work and eventually install the structural steel on the bridge. Gillingham says that was done to maintain the channel underneath the existing bridge so the boat traffic could come in and out of the harbour. So far, the south trestle and the sheet piling for the cofferdam of the abutment are built. The project also calls for north and south abutments and piers; work has started on the south pier and work on the north side will start in the weeks and months to come. After that, the crew will put in templates to be able to drive the sheet piles for the cofferdams, dig out the material inside the cofferdams and drive the pipe piles—which is going to be the substructure for the bridge. The cofferdams will be filled with concrete to bring it up to the bearing pads of where the structural steel part of the bridge will sit on the concrete substructure. Once the civil work is done by next spring, the structural steel will be put into place and the mechanical and electrical portions of the bridge will begin. “That will take up most of next year,” says Gillingham. In addition to the bridge, a concrete control house for the bridge operators to sit in during daily operations is being built. A project of this magnitude requires continuous planning by the

RECENTLY AWARDED TENDERS »» $ 598,680–Replacement of Gull Island Bridge on Route 70, Chard’s Construction Ltd. »» $497,630–Rehabilitation of Sandy River Bridge on Route 370, Mike Kelly and Sons Ltd. »» $ 488,700–Rehabilitation of Parsons Pond Bridge on Route 430, Floyd’s Construction Ltd. »» $478,050–Rehabilitation of Horwood River Bridge on Route 331 and the Curtis Causeway Bridge on Route 340, Major’s Logging Ltd. »» $401,434–Rehabilitation of North Harbour River Bridge and Little Salmonier River Bridge on Route 92, CAN-AM Construction Ltd.

construction team at every step along the way. “A lot of coordination efforts are required to ensure all of the pieces fit together and are sequenced such that construction continues in an efficient manner.” And it’s not without its challenges. Gillingham says there is limited information on the geotechnical and subsurface conditions because only a very small report has been done on that area. Right now they do not know if the subsurface

Placentia project

conditions they will be driving piles into are soft or hard. “On top of that we’re working with water.” Dealing with the tidal range and swift currents, which vary from eight to 10 feet between high and low tide, has proved to be quite tricky. “Working in all these conditions you’re working basically blindly trying to place piles and eventually concrete.” In a remote province like Newfoundland, simply procuring materials like the large amounts of steel and piling required for the project can be difficult, he says, and there’s always the issue of “finding qualified, skilled labour.” Once the colder weather arrives, workers will have to contend with heavy snowfall and strong winds—which could prove to be one of the biggest challenges ahead. “Especially when we start on the piers and we’re trying to place 90-feet long sheet piles in very tight specifications and tolerances.” After the new bridge and the approaches are built, it will need to be commissioned before the project shifts to the last phase: decommissioning the Sir Ambrose Shea Lift Bridge in either late 2015 or early 2016. “Commissioning in this sense means that everything is working properly and the way it should—there’s no glitches and nothing that’s not unexpected.” In terms of decommissioning the Sir Ambrose Shea Lift Bridge, the center stand will be taken out first, then the steel off the approaches, and finally the piers and abutments will be taken out. “Basically in reverse order as to what we’re building,” he says. Gillingham says overall, the project is on schedule and everything is going according to plans.

kub

18 / October 2013

16-21_Bridges.indd 18

13-10-10 12:47 PM

16-21_Bridges.indd 19

13-10-11 2:48 PM

BRIDGES

“We’re just going to continue with the work through the winter and see where it goes.”

MAIN POINT BRIDGE A project that will wrap up just in time for winter is replacing the Main Point Bridge on Newfoundland’s Route 332. Trident Construction Ltd. began replacing the wooden bridge with a two span multi-plate culvert in mid-July. The $1-million project is expected to be complete by the end of October. Dan Spracklin, Trident’s general manager, says it’s not your typical bridge. “Traditionally you think of a bridge to be concrete or steel or something like that, but this one is a bit different.” Since the bridge is on the edge of the Atlantic Ocean, they chose to build it using corrugated aluminum because it offers more corrosion resistance than steel in a saltwater environment and allows for a longer service life—about 75 years. Before starting on the bridge workers needed to put in a traffic diversion, and a river diversion because the new structure is going where the old one was. Next they had to dig out for the footings. “This structure, just because of the location and nature of the soil underneath, is actually going to be on steel piles,” says Spracklin. Piles were driven into bedrock about 30 feet down because a layer of clay-like material wouldn’t support the weight of the structure through traditional footings. “Theoretically the whole ground around it could [give] out and the structure would still be sitting there on the steel piles,” he says. As for challenges, Spracklin says things haven’t been too bad so far, but getting started was the hardest part. “When you’re dealing with water and rivers it’s always a bit of a crapshoot.” The remainder of the project will be the “less risky” part. “When you’re working down below river level and you haven’t really got anything to work from—other than earth, which is always risky if you get a flood—once you get some piles in and the concrete poured you’re not likely to have a real catastrophic event,” he says. The bulk of the remaining work will be putting together the culverts and backfilling. “We will actually have the bridge open before the project is finished because of the nature of it, but when you’re working on rivers and stuff like that you want to get it done as early as you can before hurricane season.”

WHAT PROJECTS ARE ON DECK? With about 10,000 kilometres of roads and highways in Newfoundland and Labrador’s vast transportation network, plenty of work remains to be done, says Minister Davis. In terms of bridge inventory there are currently 1,134 structures, which includes bridges and culverts larger than 3 meters wide, in the province. Although bridge projects play a significant role in the overall transportation improvement plans each year, some projects will take

Main Point Bridge

priority over others based on comprehensive biannual inspections. “With so many structures in our inventory, we do have long list of structures that require attention,” he says. Another issue is not every tender issued receives bidders—a challenge that’s not uncommon during periods when the economy is booming, as is currently the case in Newfoundland. However, Davis is confident the province’s best days are still ahead and the economy will continue to ride the tide for years to come. In addition, his ministry is receiving more than $77 million through agreements with the federal government to help pay for many of Newfoundland’s upcoming infrastructure projects such as replacing Little Barachois Brook Bridge, Robinsons River Bridge and E.S. Spencer Bridge. “The long list of improvements being made by the provincial government will provide a safer transportation system throughout our province into the future,” he says. Patrick Callan is On-Site’s assistant editor. Send comments to pcallan@on-sitemag.com

20 / October 2013

16-21_Bridges.indd 20

13-10-10 12:47 PM

HERE TO WORK AS LOng AS YOU DO

You deserve a vocational truck that puts in the same long hours as you do. According to Kevin Medford of Medford Trucking, drivers who get behind the wheel of the Cat® Truck with its CX31 automatic transmission quickly appreciate its shift-long comfort and productivity. “If they drive the truck, they’ll like it and they’ll buy it,” he says. “We’ll probably put six more or so in our fleet in the near future.” That’s because the Cat Truck combines ease of operation with the rugged durability you expect from Caterpillar—keeping your performance high 24/7. Learn more—and see how the Cat Truck is hard at work for Medford Trucking and others—at DriveCat.com/testimonials.

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.

16-21_Bridges.indd 21

13-10-10 12:47 PM

2012 was Caterpillarâ&#x20AC;&#x2122;s first full year in the vocational truck segment.

22 / October 2013

22-29_Trucks.indd 22

13-10-08 2:51 PM

VOCATIONAL TRUCKS

sk five economists a question, someone once said, and you’ll get five different answers. That could just as easily apply to equipment manufacturers. Nearly everyone has a different answer as to what customers are looking for when selecting a vocational truck, be it a dump truck, concrete mixer, crane, tar spreader or stone slinger. In this issue we ask five manufacturers what’s top-of-mind for their customers and how each manufacturer is responding to their customers’ needs.

DON’T FENCE ME IN… Back in 2007 American emission regulations demanded that particulate matter emissions on large vehicles be reduced. That year Mack installed a Diesel Particulate Filter (DPF) on its vocational

trucks and a DPF/SCR catalytic conversion combination in 2010. Trouble was, after adding equipment, lift axles or even twin steers the trucks were getting a bit cramped for space. “Especially for Ontario the twin steer was an issue because the spacing on the SPIF law kind of changed as we were going,” says Stuart Russoli, product manager for construction vehicles at Mack. “So a big thing with that is how do you package your DPF, SCR, fuel tanks and everything? Because we’ve taken up so much more frame rail space.” According to Russoli, the answer is a series of after treatment packages. In one, both DPF and SCR components are positioned underneath the cab. In another, the DPF is placed underneath and the SCR in a vertical position behind the cab. Twin steer vehicles, meantime, feature a “vertical-vertical” configuration where both sit behind the cab on

on-sitemag.com / 23

22-29_Trucks.indd 23

13-10-08 2:51 PM

VOCATIONAL TRUCKS

Customers are looking for safe, durable trucks that are going to last for a long time.

a rack. “That way your frame rails are clear for your two steer axles,” explains Russoli. “And that’s really good for mixers because they have a water tank, fuel tank, battery box and chutes. There are so many things on there, they run out of space to mount anything.” In addition to moving the fuel tank and battery box back, and mounting the after treatment system behind the cab on the rail, Mack has re-designed its fuel tanks to provide greater frame rail space. For example, a traditional 22-inch round 88-gallon fuel tank mounted under the driver’s side of the cab will stick out 25 inches rearward of the back of the cab. By contrast, a D-shaped version of the same capacity tank sticks out 18 inches rearward, saving seven inches of rail space. Whatever you choose will depend, of course, on your job requirements, says Russoli: you may need more space at the front of the truck—or you may want greater weight at the back or greater overall weight distribution. “We have so many different options you can pick to optimize it, whether you’re a mixer or a dump or you have a long wheelbase and you can fit extra things in.”

Y N M S

START ME UP… AND NEVER STOP! Is space at a premium at Kenworth too? “Absolutely,” says Stephan Olsen, director of vocational fleet sales. Kenworth features a “clear back of” Diesel Exhaust Filter (DEF) tank, which like Mack’s DPF sits underneath the cab. “So we can configure a day cab truck with 75 gallons of fuel, three batteries and a compliant exhaust system and have 100 per cent rear back of cab frame space available.” But a larger concern for Kenworth customers, Olsen says, is uptime. Trucks have to be reliable, durable, and when they do go down put back on the road again lickety-split. “One of the features that Kenworth has are engines that sit entirely forward of the cabs,” says Olsen. “There’s no engine doghouse, which maximizes access to the engine and its accessories so technicians spend less time doing maintenance and repairs.” Kenworth also colour codes and numbers its air and electric lines for quicker diagnostics and repair, “things not all our competitors do,” adds Olsen.

24 / October 2013

22-29_Trucks.indd 24

13-10-08 2:51 PM

SmoothieC

T:8.125”

The Mack® Granite® does what it takes. It’ll carry anything — dump, roll-off, mixer, whatever the job needs. And if you need twin-steer, it can do twin-steer. When the work gets hard, the Granite doesn’t say no. It’s ready for anything.

SmoothieCA_OnSite_FP_Oct_r03.indd 1

22-29_Trucks.indd 25

T:10.875”

YOU’RE NOT MIXING A SMOOTHIE.

MackTrucks.com/Granite

9/11/13 10:36 AM

13-10-08 2:51 PM

VOCATIONAL TRUCKS 2012 was Cat's first full year in the vocational segment but it's hearing the same thing from its customers: keep us on the road. Cat’s answer, says product manager Dave Schmitz is its Product Link telematics package that sends a signal indicating any problems directly from the truck to the dealer via cell and satellite. How well does this work? Well, Schmitz recalls one incident in which a dealer called to advise a customer about a potential problem in the coolant system of a truck he had just purchased. No problem with it here, the customer told him. Well, bring it in when you have some time, he was told, just to be sure. “They found it did have a small coolant leak that was not an issue at the time, but would turn into a major issue if he was hauling in a remote location and ran out of coolant.” Within an hour the leak had been fixed and the client was back on the road. The other important factor for maximizing uptime, says Schmitz, is vehicle durability. That means choosing the right truck at the time of purchase. Are you ordering the correct frame rail? Is it robust enough? Have you settled on the right suspension and axles for your application? Again, the nature of the job and payload will dictate how rugged or heavy a vocational truck should be. Schmitz

says it's standard for the industry to equip their trucks with a 10-inch to 11-inch rail, for example. Cat takes it one step further. "All our trucks come with a standard 12-inch rail so that when you get into the tougher applications and you load up the truck more you don't have to jump to double rails as quickly."

HE AIN’T HEAVY… Don’t focus on strength and durability at the expense of weight, advises Bob Mann, vice-president of Vocational Sales at International Trucks. “Weight is Number One.” Many of the mixers International sells in the U.S. and Canada are single-frame rails to keep the weight down. It also provides multiple options for cross members, again depending upon the application. “Some people want to build stuff that’s just indestructible and other people are very concerned about weight. So we will put some of the lighter cross members in selected applications where we’ve validated that they will work.” Despite the continued focus on rugged durability weight targets have dropped, says Mann, particularly in the U.S. “In the states we see some people wanting to move from 13-litre engines into

Kenworth’s T880 vocational truck goes into production this fall.

26 / October 2013

22-29_Trucks.indd 26

13-10-08 2:51 PM

13072_

Reliable, durable, long-lasting, and now, self-diagnosing. Meet the Detroit™ DD13® with Virtual Technician™ onboard diagnostic system. In the event of a fault code alert, the engine notifies you and our Customer Support Center within seconds. We can’t fix a problem before it happens, but with Virtual Technician and hundreds of authorized service locations we’re almost there. Demand uptime. DEMANDDETROIT.com DDC-EMC-OTH-0129-0313. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © Detroit Diesel Corporation. All rights reserved. Detroit™ is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.

13072_DDC7836-BackDown-QR13_OnSite.indd 1

22-29_Trucks.indd 27

5/1/13 1:26 PM

13-10-08 2:51 PM

VOCATIONAL TRUCKS

9-litre engines. In Canada we see the opposite: much larger mixers, tri-drives, and twin steer tandems.” Mann’s colleague, Martin White, director of vocational sales, agrees. “They’re not really concerned about the weight. They’re concerned about uptime and durability.” Russoli doesn’t see the issue of weight dissipating any time soon. “[Customers] are always looking to lighten their trucks so they can get more pay load,” he says. “That means lighter suspensions, lighter everything.” Mack’s newest offering is a single rear-axle version of its MHD Granite tandem rear axle truck. “For a Class 7 GVW you can actually spec it down for lighter duty; for example, a service truck out in the field or a lighter duty dump.” In the meantime Cat is supplementing its CT660 set back axle vocational truck with the launch of a new set forward line of trucks. This is because many jurisdictions use a bridge formula involving front and rear axles to determine how much weight you can put

Increased safety and comfort is of concern for another reason: driver retention. Drivers are getting older and retiring, while drivers entering the industry expect more creature comforts such as trucks with better ergonomics that are also simpler to drive. One innovation Kenworth introduced to attract and keep new drivers, says Olsen, is the Extended Day Cab on its T800 and W900. “This increased cab depth by six inches, head room by five inches and over 22 cubic feet of storage feet.” Most agree a more comfortable driver is also a safer driver. But it won’t end there, boasts Olsen. A new “benchmark for comfort” will be set when Kenworth’s brand new T880 vocational truck goes into production this fall, details to follow. Not to be outdone, Cat boasts switch layouts that help drivers see what’s happening inside their trucks quickly, says Schmitz, with “every switch, every handle, every lever” within easy reach.

on your truck. Setting the axle further forward of the cab will help Cat meet those requirements and also provide a better ride for the driver. What won't change, says Schmitz are the features built into the original line. "When we introduced our CT660 the comments were the quietness, the ruggedness of the truck and the way the cab is set up for ease of use.”

One area where it may be harder to achieve major improvements is fuel economy. Russoli says that’s because of the nature of fuel use in vocational trucks. “Fuel economy is hard to quantify because you do a lot of hours just sitting and waiting to get loaded, waiting to unload.” What we will see, he says, is a continuing trend towards automatic transmissions. “It definitely has picked up and when you go out it seems more and more are going in that direction. But it’s always more expensive so there’s a tradeoff.” Supporting all this, says Russoli, is an economy that has begun to rebound from the 2008 financial crisis, particularly in the concrete pumper industry. Olsen agrees. Kenworth has seen a steady increase in the demand for ready mix trucks. “That’s a positive sign that the construction segment is beginning to grow…because we have not seen movement there for a number of years.” More sales movement in vocational trucks sales may continue despite rising costs. A case in point: Western Star. Silbernagel says Western Star is not going to be the cheapest truck out there, but that durability still matters. He suspects those who are purchasing despite a down market “will be looking to purchase something that is going to last them a long time.”

BRING `EM HOME SAFELY… For many “the writing is on the wall,” says Western Star product manager Dan Silbernagel: Safety is no longer optional, but a “national mandate.” In most instances customers are insisting on safer vehicles because they naturally abhor the idea of their drivers getting hurt or worse; but they’re also keen to take advantage of lower insurance costs by installing safety systems on their vehicles. To answer that call the Cleveland-based manufacturer is in the midst of a transition from roll stability controls that rely solely on rear axle sensors to enhanced stability controls featuring rear and front axle sensors as well as steering angle and yaw sensors. The enhanced system, says Silbernagel, is available now in its 4700 tractor truck and is scheduled for its 4900 this November. “The system with enhanced stability control knows which position the steering wheel and steer axles are in. Also, with accelerations laterally, your vehicle will react to information from that yaw sensor to stabilize the vehicle if it feels like it’s becoming unstable.”

Y A

H c A S

F David Godkin is a B.C.-based freelance writer and regular contributor to On-Site. Send comments to editor@on-sitemag.com.

Get the f

28 / October 2013

http:/ /

7677-2_WS 22-29_Trucks.indd 28

13-10-08 2:51 PM

22-29_Trucks.indd 29

13-10-17 4:03 PM

NATURAL GAS TRUCKS

A second look at Greater fueling infrastructure and increased strength make natural gas-powered vocational trucks a viable option for Canadian operators.

BY JAMES MENZIES

or years, the idea of an alternative fuel that could power heavy trucks, was significantly less expensive than diesel, could be run with no engine modifications and experienced less pricing volatility than diesel seemed like, well, a pipeline dream. But much of that has changed over the course of the past couple years. While there’s still no nationwide fuelling infrastructure for natural gas, there now exists a fairly extensive and well-proven product line. And in a vocational truck environment, where trucks usually stick close to home base, all that’s really required is one or two reliable fuelling stations. A confluence of events has many truck operators taking a close look at whether natural gas is a viable option for them. Robert Carrick, sales manager, natural gas with Freigthliner, told a group of truck writers at a recent natural gas event, that no topic has come up more frequently with customers over the past year than natural gas. There are two main reasons for this: the decoupling of prices between natural gas and diesel, with the former staying flat while diesel has continued its slow creep upwards; and the sudden availability of a wide range of engines and vehicles that can run off the cleaner-burning fuel. To a lesser extent, there’s been some pressure on truckers from customers to switch to more environmentally friendly transportation technologies. The increased interest in natural gas was bolstered by the arrival of the much-anticipated Cummins Westport ISX12 G. Previously, most natural gas trucks were relying on the ISL G, a 9-litre engine

considered by many to be underpowered for Canadian applications. The option that has received some uptake in this market is the Westport 15-litre GX engine, which can run on liquefied natural gas, but is diesel-ignited, so it still requires a diesel particulate filter (DPF) and selective catalytic reduction (SCR) exhaust aftertreatment systems, adding some complexity and cost. The ISX12 G has been heralded as the answer to a wider range of applications without requiring SCR and a DPF, allowing gross vehicle weight ratings right up to 80,000 lbs. It can be designed to run off natural gas in compressed or liquefied form, giving customers greater versatility. “This engine has been touted for two or three years,” says Carrick. “Everyone was waiting for it. Never in history was the cart so far ahead of the horse, with everyone thinking they were going to get engines before everyone else.” Those engines are beginning to trickle into the market, and can be ordered in a pretty diverse range of vehicles from Freightliner, Kenworth, Peterbilt, Mack and Volvo—even Autocar, in the refuse truck segment. I recently drove a Freightliner Cascadia with ISX12 G in Napa Valley, Calif., and found it to be flush with torque and power, while driving whisper-quiet. It did emit an unpleasant, highpitched noise upon release of the throttle, which I suspect will be eliminated when full production commences. It didn’t seem to

30 / October 2013

30-33_Natural Gas.indd 30

13-10-09 10:40 AM

Onserisciet est ant, sinum quossumque veriat. Onse derum eniet faccum idit aut et abo. Ut ra volorrum volorru ndempor

ONE OF THE BIGGEST CHALLENGES FACING EARLY ADOPTERS HAS BEEN TO DESIGN A TRUCK THAT PROVIDES SUFFICIENT RANGE. affect performance in any way, but did detract from one of natural gas’s most appealing attributes from an operator’s perspective, that being its quiet operation. Unlike the ISL G, which is only available with automatic gearboxes, its bigger brother can be ordered with both manual and automatic transmissions. Drivers who give natural gas a try will have little to complain about. The engine puts out diesel-like torque, if not better, and is quieter to operate. Drivers also appreciate that they’re able to go home at the end of a shift not smelling of diesel fuel. One of the biggest challenges facing early adopters has been to design a truck that provides sufficient range. Mike DelBovo, president of Saddle Creek Transportation in Lakeland, Fla., now has 19

million kilometres of natural gas trucking experience, more than any other over-the-road fleet in North America. The company is currently working with Freightliner on its fourthgeneration natural gas vehicles, which DelBovo hopes will achieve a range of 1,126 kilometres between fills. Like Saddle Creek, many of the early users of natural gas-powered trucks have worked with gas suppliers to build fuelling stations on their own premises. But a network of publicly accessible fuelling stations is beginning to take form. Shell this summer opened the first of its LNG fuelling stations in Calgary, Alta. It plans to develop an LNG corridor linking Calgary to Edmonton. This investment led to the purchase by Bison Transport of 15 LNG-fuelled Peterbilt highway tractors. In Quebec, Gaz Metro continues to add LNG stations along what it has dubbed the ‘Blue Road,’ providing a corridor between Ontario and Quebec City, where LNG-powered trucks can gas up. In the Atlantic provinces, Irving Oil has indicated it will begin building natural gas fuelling stations from the East Coast into Quebec. On the opposite coast, Vedder Transport has built an LNG fuelling station at its Abbotsford yard, which is open to the

on-sitemag.com / 31

30-33_Natural Gas.indd 31

13-10-09 10:40 AM

NATURAL GAS TRUCKS

public, and it plans to work with its natural gas partner Fortis to build more fuelling stations between the Lower Mainland of B.C. and Alberta. Vedder, incidentally, may be putting LNG-fuelled trucks to their most rigorous test. The fleet of 15 Peterbilt trucks hauls solid waste, grossing 140,000 lbs, between the Lower Mainland and Cache Creek, B.C.—a 660-kilometre round-trip. “I would have to say, 200 of those miles are probably some of the toughest pulling in the province of B.C. that you’d find, maybe anywhere in North America, with 6 to 8 per cent grades over about 50 per cent of that round-trip,” said Vedder Transport president Fred Zweep. Most of the Canadian companies already using natural gas trucks have opted for the 15-litre Westport GX engine. It provides up to 475 hp and 1,750 lb.-ft. of torque. In 2015, Cummins will come out with its own 15-litre engine, which will be spark-ignited and therefore won’t require a DPF or SCR, though some added maintenance consisting of spark plug replacements will be necessary. Volvo, too, is currently working on designing a big bore natural gas engine of its own. Product availability is no longer an issue, however, cost can be. Natural gas-powered trucks cost $60,000 to $90,000 more than

a diesel equivalent. Most of this is due to the high cost of the tanks, which must be engineered to store fuel at 3,600 psi (in the case of CNG) or at -260 F (for LNG). Advances in tank design and increased demand are expected to bring the cost of the tanks down. But even today, in applications where enough miles are accumulated, a payback can be achieved. Currently, LNG costs about 30 per cent less than diesel and there is no road tax on natural gas, though that could change if widespread adoption of the fuel is noticed by the feds and provinces that rely heavily on diesel taxes to fill their coffers. Some provinces, such as Quebec, offer tax incentives to switch to natural gas. When considering new technologies, most truck owners eye a payback of two to three years before taking the plunge, which is attainable in certain, but not all, operations. “You have to be running the miles and sourcing the fuel at the right cost,” to get an ROI in two to three years, Carrick admitted.

James Menzies is editor of On-Site’s sister publication Truck News. Send comments to editor@on-sitemag.com.

32 / October 2013

30-33_Natural Gas.indd 32

13-10-09 10:40 AM

WE ARE PROFESSIONAL GRADE

ALL-NEW 2014

GMC SIERRA 1500 - The mosT fuel-efficienT V8 in a pickup, eVen beaTing ford’s ecoboosT V6.* - The 2014 sierra creW cab has achieVed a 5-sTar oVerall Vehicle score for safeT Y from nhTsa.**

incredible Thinking in The form of a Truck.

Sierra 1500 (4WD) Crew Cab shown with optional equipment.

* 2014 Sierra 1500 with available 5.3L EcoTec3 engine equipped with a 6-speed automatic transmission has a fuel-consumption rating of 11.0L/100 km combined (2WD) and 11.4L/100 km combined (4WD). Fuel consumption based on GM testing in accordance with approved Transport Canada test methods. Your actual fuel consumption may vary. Comparison based on wardsauto.com 2013 Large Pickup segment and latest competitive data available. Excludes other GM vehicles. **U.S. government 5-Star Safety Ratings are part of the National Highway Traffic Safety Administration’s (NHTSA’s) New Car Assessment Program (safercar.gov). ©2013 General Motors of Canada Limited. All rights reserved. GM® GMC® Sierra® WE ARE PRoFESSioNAL GRADE®

30-33_Natural Gas.indd 33

13-10-09 10:40 AM

SECURITY SAFETY

34 / October 2013

30-39_SecureAndSafe.indd 34

13-10-09 11:40 AM

SECURITY SAFETY

Are thieves robbing you blind? Here’s how to protect your jobsite

Keeping what’s yours BY JIM BARNES

heft raises your costs, lowers your profits, makes you less competitive and affects morale. Your equipment, tools, materials, appliances and other investments are all at risk—but there are simple steps you can take to protect them. It is hard to get a handle on the dollar value of jobsite theft. However, according to Pat Cowman, president of MicroDot DNA Technology Canada in Leduc, Alta., he knows one contractor that lost more than $500,000 worth of tools on a major infrastructure project.

MAKE A PLAN Police forces, municipalities and insurers, among other organizations have published much useful information on jobsite security. Accountability is the cornerstone, the experts agree. Make someone responsible for jobsite security and empower him or her to gather information and take steps when necessary. This person should report directly to senior management and liaise with police, as well as head up initiatives to work with consultants, neighbours and other parties. Before each job, a written security policy should be shared with all stakeholders. Make it clear that theft will not be tolerated and thieves will be prosecuted. Create a list of key personnel who can respond in an emergency and share it with local police.

Create a list of key personnel who can respond in an emergency and share it with local police. on-sitemag.com / 35

30-39_SecureAndSafe.indd 35

13-10-10 5:04 PM

SECURITY SAFETY

Be prepared to work with the police. Let them know your schedule. Ask them about recent thefts in the area and report any crimes promptly—your theft might be part of a pattern. Work with the neighbours. Check out the neighbourhood watch and post rewards for information about break-ins or vandalism.

SECURITY

The gold standard in site security is the security guard, but some contractors feel that this is too expensive a solution.

Establish areas for receiving materials and lockable, on-site storage of tools. Everything entering or leaving your site should be logged. Signage is key and some of it may be mandated by the province. “No trespassing” signs not only discourage unauthorized visitors but also help protect you from liability related to injuries. Other useful signs might include “Danger,” “Authorized personnel only,” and “Thieves will be prosecuted.” Invest in good fencing and keep access to a minimum. If you can’t fence the whole site, as with roadbuilding, at least fence in the high-value storage areas. Log all workers and visitors in and out. Use your locks and control the keys. Some operators do not, and it is all too common to find the keys left in a piece of heavy equipment. The person in charge of security should have a record of all issued keys. Unissued keys should be secured and extra keys should be kept to a minimum. Light the site effectively at night so passersby, including police, can easily see what is happening. Monitored cameras can let you know if someone is on-site without permission. Alarms will tell you when people are in restricted areas. Check with police on whether alarms can be routed to them automatically. Require employees to park outside the fence or in a special parking area to reduce the temptation and opportunity to steal.

The gold standard in site security is the security guard, but some contractors feel that this is too expensive a solution. It might help to think of that expense as a form of insurance. “I have seen a site that was completely gutted of copper,” says Brad Heise, owner of Dominion Security Services, London, Ont. The owner had called the firm a little too late. “All we could do was do our best to protect what’s left. If we had been there a month earlier, there wouldn’t have been a problem.” The same can be said for tools and machines. Once a machine has been stolen, the cost of a replacement and delays to the schedule might make a security service look cheap. “No security, no amount of planning is foolproof,” says Heise. If somebody really wants to steal something, there is a good chance that they can. However, “By protecting property for the client, we’re making it very difficult for that to happen.” The largest security company in Canada is Commissionaires. It has stringent hiring processes and can provide guards with very high security clearances if needed. It provides extensive training, including specific training on jobsite crime where required, says Jan Kwasniewski, director of client services, Commissionaires Great Lakes. As a large organization, Commissionaires offers an array of services… everything from preliminary theft risk analysis to employee background checks to supplying on-site guards. They can also provide investigative services to resolve recurrent problems.

INSURANCE CONCERNS Your insurer is a key player. Growth in construction theft has led to increased claims, leading in turn to higher premiums and in some cases lack of coverage. According to Roger Keightley, commercial lines consultant, National Underwriting for Aviva Canada in Toronto, the basics of insuring against theft include:

36 / October 2013

30-39_SecureAndSafe.indd 36

13-10-09 11:40 AM

30-39_SecureAndSafe.indd 37

13-10-09 11:40 AM

SECURITY SAFETY

“take out a builder’s risk policy, insure for a little more than the contract price to allow for escalation— say, a cushion of 10 per cent.”

• Property coverage protects property at the jobsite against theft and various disasters. • Contractor’s equipment insurance covers mobile equipment and tools against most common risks. • Builder’s risk insurance protects against the theft of materials, temporary items like hoardings, and covers the project itself as it is gradually completed. However, you should be aware of whether your insurance covers actual cash value or replacement value. Older equipment may be covered only for replacement value, and if it is old enough, that may be insignificant. Price fluctuations in materials and other costs during the construction period can have repercussions. Keightley suggests when you take out a builder’s risk policy, insure for a little more than the contract price to allow for escalation—say, a cushion of 10 per cent. Premiums are set individually for each risk that is insured, he notes. If the contractor has invested in good site-security measures, that should have some effect in reducing the premiums.

STRATEGIES Lumber, copper wire, drywall, tile, carpet and windows will all go missing if you do not track and protect them. Do not have materials delivered until you need them, receive them properly on arrival and secure them on-site. Tools are frequent targets of theft. All corporate assets should be marked, inventoried and tracked bearing the company’s name, as well as a tracking number of some kind. Tool storage should be kept locked at all times and a checkout system implemented. Staff should mark personal tools with an identifier, using stamps or etching tools. Tool marking has been around for a while. MicroDot, for example, has a marking technology that can be used with tools, equipment, vehicles and other items, explains Cowman. “In our program, every single tool has both visible and invisible markings,” he says. The effect is to deter theft and make recovery simpler. The tiny microdot tags are almost invisible but make practically any item they are applied to identifiable.

38 / October 2013

30-39_SecureAndSafe.indd 38

13-10-09 11:40 AM

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.

1-800-201-3346 www.wackerneuson.com

4.02.08 updated

30-39_SecureAndSafe.indd 39

13-10-09 11:40 AM

SECURITY SAFETY

Protecting the crowd A lot of non-employees want to get onto your jobsite: owners, engineers, building inspectors, architects, tour groups, media, politicians, kids taking a short cut… you name it. Few of them have training in safety or are fully aware of the hazards. What is at stake if they are injured? Beyond civil litigation, the criminal provisions of Bill C-45 are a concern. It requires all persons directing the work of others to take reasonable steps to ensure the safety of the public as well as workers. Various levels of government are putting more emphasis on public safety. For example, in June the City of Calgary began to require that public protection site safety plans be submitted concurrently with building permit applications for work meeting stated criteria. In Ontario, the Occupational Health and Safety Act (OHSA) helps protect

workers from health and safety hazards on the job, says William Lin, spokesperson for the Ontario Ministry of Labour. “It sets out duties for all workplace

That technology, in turn, led to the need for a database to track ownership of the various items. “We created a system for tracking inventory,” says Cowman, which is now a loss-prevention service in its own right. When a client exports the data from its tool inventory into the company’s database, “That makes it traceable by law enforcement and private individuals,” he adds. “Police recover tools all the time, but if the contractors didn’t keep track of the serial numbers, law enforcement can’t do anything,” notes Cowman. Some tool manufacturers have addressed the problem, as well. For example, Hilti’s TPS (Theft Protection System) puts an electronic module inside the tool. A company-specific theft protection code is set in each tool using a company card. Authorized users then use an activation key to unlock the tools electronically.

parties and rights for workers. It establishes procedures for dealing with workplace hazards and provides for enforcement of the law where compliance has not been achieved voluntarily,” he notes. “Although our jurisdiction is worker safety, our investigation findings may contribute to public safety as well,” says Lin. In some cases when a non-worker is injured or killed at a workplace location, the Ministry may still investigate in order to identify whether or not there were contraventions of the Occupational Health and Safety Act that may have contributed to the incident.

on page 42

40 / October 2013

30-39_SecureAndSafe.indd 40

13-10-11 1:39 PM

INNOVATION SPOTLIGHT STIHL introduces the TS 480i and TS 500i Cutquik®. The world’s first electronically controlled fuel injected cut-off saws in the outdoor power equipment industry. They feature revolutionary and innovative technology, making them indispensable tools on every building site. When it comes to building roads and construction work above or below ground, the STIHL TS 480i and TS 500i make light work of tough jobs. Whether you’re cutting concrete, steel, pipes or asphalt, the STIHL TS 480i and TS 500i will take the strain out of the daily grind. These powerhouses are easier to start and ensure optimized engine performance and excellent handling. STIHL continues to redefine world class.

STIHL‘S NEW EXCLUSIVE TECHNOLOGY If you work on a construction site, you’ll know that delivering a fast, quality cut is what really counts. The STIHL TS 480i and TS 500i with STIHL Injection are the most reliable workmates you could hope for. They combine precision, efficiency and user-friendliness with cutting-edge technology. So you can focus on what matters most – your work. World’s first electronically controlled fuel injection system in handheld powertools 17% more power, while only a 6% weight increase, as compared to the TS 410/TS 420 Simplified starting procedure, no choke - purge and pull X2 low-maintenance air filtration system, maintains 99.96% cleaning efficiency Compact and well-balanced design promotes user comfort Semi-automatic belt adjustment Electronic water control remembers last setting used, water flow adjusts easily while in operation and no water at idle

TS 480i & TS 500i Cutquik

TS 480i

TS 500i

Displacement

72.2 cc

Power Output

3.9 kW

Weight

10.0 kg / 22.0 lb

10.2 kg / 22.5 lb

Max. Wheel Size

305 mm / 12"

350 mm / 14”

Max. Cutting Depth

102 mm / 4.0"

125 mm / 4.9”

Innovation at work. For over 87 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.

www.stihl.ca STIHLCanada

JOIN THE CLUB that everyone is talking about! www.STIHLCLUB.ca

* #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.

30-39_SecureAndSafe.indd 41

13-10-09 11:40 AM

SECURITY SAFETY

Heavy equipment can be a magnet for professional thieves. Visible and hidden identifiers such as a die stamped code should be used in multiple locations on construction machinery. Immobilization is another key tactic. When not in use, remove ignition wires or the battery and lowering buckets and blades. Immobilization devices can be applied to the fuel, hydraulic, and electrical systems. Wheel locks can be used on smaller vehicles, generators or compressors. Many new machines now incorporate sophisticated GPS systems that can be used to locate the machine if stolen. As well, third-party radio or cellular transmitters can be applied to make retrieval easier and offer a deterrent to theft.

from page 40 The government of Ontario recognizes that construction work on projects is often in close proximity to existing buildings and structures or roadways. Accordingly, regulations require constructors to erect “overhead protection” within 4.5 m. of a public way such as a sidewalk, laneway, or other passage. The requirements are quite detailed for such covered ways that protect passersby from anything that might fall from a building under construction, including materials, tools and scaffolding. If work on a project may endanger a

HUMAN FACTORS

person using a public way, a sturdy fence

“Many contractors don’t understand the internal aspects of loss. It’s a touchy subject,” says Cowman. It does not matter how well you know your workers. Do detailed background checks on new hires. If someone has a history of theft, you need to know that. Drug screening, where permissible, might also help, both from a theft and safety point of view.

at least 1.8 m. in height must be constructed between the public way and the project, according to regulations. In addition, machinery, equipment and material that are being used, left or stored where it may be a hazard to traffic on a public way must be marked by flashing devices. All of the provinces have comparable

Offer a reward for information. Your goal is not to catch thieves but to deter them from trying to steal. Employee attitudes are part of the mix. Most of your employees are inclined to be honest and do not like to see co-workers getting away with theft. At the same time, they are not comfortable talking to management about it. Try to create an environment where theft is not tolerated and information can be volunteered anonymously—say through a hotline or Crimestoppers. Offer a reward for information. Your goal is not to catch thieves but to deter them from trying to steal. Your jobsite does not have to be Fort Knox. It just has to be more secure than the one down the road, and give internal and outside thieves reason to think twice about trying to steal from you.

regulations on protecting the public from workplace hazards. On-site, the same tactics that help secure the site from theft apply to public safety. Know who is on your site and make sure they are staying in safe areas and wearing appropriate safety gear. Fences and controlled access, signage and trained security guards may all be part of the mix. In the case of site tours, a safety plan should be developed that establishes escorts and the route. A site emergency phone number should be available. Adequate signage must be posted. Visitors must attend a safety briefing, commit to following the safety plan and wear appropriate safety gear. Make sure that your subcontractors carry their own liability insurance, says

Jim Barnes is On-Site’s contributing editor. Send comments to editor@on-siteamag.com.

Roger Keightley of Aviva. “That’s where we sometimes see gaps.”

42 / October 2013

30-39_SecureAndSafe.indd 42

13-10-11 1:39 PM

Mu ind Glo stan Dis

GLOBUG

A new deďŹ nition for Northern lights. Multiquip GloBug lighting solutions produce portable glare-free light for construction and industrial applications as well as special events. Easy to transport, and easy to set up, GloBug lights will improve visibility, productivity and safety. Cart mounted and work stand models are available producing up to 1,000 watts of clean, diffused lighting. Discover the newest northern lights â&#x20AC;&#x201C; discover GloBug from Multiquip.

www.multiquip.com

30-39_SecureAndSafe.indd 43

13-10-09 11:40 AM

SOFTWARE By Jacob Stoller

Engaging the programming trade If your enterprise software isn’t quite right for the job, maybe it’s time to consider customization.

n a diverse field like construction, it’s very difficult for software vendors to provide features that meet the needs of every company. This leaves many contractors with functionality gaps as they conduct their day-to-day business. Perhaps a job-scheduling module is awkward to use for certain types of projects. Maybe some payments have to be made manually. When these shortfalls get out of hand, many contractors will consider engaging the programming trade to customize their applications, or in extreme cases, build new ones from scratch. There are some projects, particularly those that are peripheral to the corporate systems, that are relatively straightforward. Building a special web page or creating a mobile app that gives supervisors access to the scheduling system, has become almost routine. “A lot of development tools out there are getting so easy to use that they almost don’t require a developer’s skill anymore,” says Randy Hearn, senior research analyst at London, Ont.–based Info-Tech Research. Core applications that handle corporate data are a different matter. Bringing in programmers here calls for a much greater commitment from IT and the management team commissioning the software. Programmers need a very thorough understanding of the company’s requirements, objectives and existing environment. “When we work with clients, we start with a high-level roadmap,” says Greg

Betty, CEO of Toronto-based Intelliware Software Development. One of the keys is eliminating all options for using software that’s readily available before selecting the build option. “We look at the functions they need to support and what is available, and then we help them prioritize their requirements,” says Betty. Integration, or getting diverse software components to work together as a seamless system, is the most common challenge. While custom interfaces look simple on a block diagram, they need to be managed on an ongoing basis. For example, if a company creates a custom interface between a scheduling module and the accounting system, that interface may need to be updated whenever either system changes. “Your hand is forced in many circumstances, maybe due to an operating system upgrade, compliance with some legislative requirement, or some other event. Integration points break very easily,” says Betty. It’s essential to have an internal team charged with the stewardship of the code once the project is completed. “They’d know where the code is, the nature of the integration points, and how the software interacts with the organization,” says Betty. For smaller firms, solution providers can provide virtual staff to execute this function on a contract basis. The key is ensuring the code is easily accessible. “You don’t know if developer ‘A’ is going to be with you, so you have to make sure your developers are following standards and known best practices.” says Hearn.” One of the most commonly discussed issues is the offshore option. However,

while this talent pool is welltrained and capable, managing a project halfway across the globe can have hidden costs. Because communication around requirements has to be very precise, language issues or the need to accommodate different time zones can cause potential errors and delays. Ensuring that the same programmers stay on the project is another issue. “Every outsourcer will prioritize according to their schedule, unless you’re a huge fish,” says Hearn. There’s also a need for at least some local expertise for testing and validation of the final product. “It’s not usual that you get a system and can throw it straight into production,” says Hearn. Many offshore development firms address this by keeping local project managers on staff in the cities where their customers are located. Another important enabler is that the programmer’s toolkit has become far more powerful. “The cloud gives you a much more viable starting point for projects today than in the past,” says Betty. “It’s also astounding how much is available in the open source world, and how easy it is to stitch things together. Overall, it’s much easier to put together large production systems than it was even five years ago.” Nevertheless, the easiest route by far is buying software that a vendor tests, maintains, updates and supports for thousands of users. When faced with significant functionality gaps, companies should turn to custom programming only if all other options—including upgrading to an integrated suite—have been carefully weighed. Jacob Stoller is principal of Toronto-based consultancy Stoller Strategies. Send comments to editor@on-sitemag.com.

O M 1(V

A Te

44 / October 2013

40-41_Software.indd 44

13-10-10 2:46 PM

The Unmistakable Power of Heavy Equipment Solution Provider

Strongco is committed to the success of our customers. We understand your equipment needs and offer exceptional aftermarket support with factory-trained technicians and a full OEM parts support network that keeps you working.

Strong People Strong Brands Strong Commitments Multiline

Crane

Ontario Alberta Quebec Atlantic Mississauga Acheson Laval Dartmouth 1-800-268-7004 1-877-948-3515 1-800-363-6789 1-800-565-1916 (Visit our website for a complete listing of all branch locations)

Ontario Burlington 1-800-263-6253

Case Alberta Edmonton 1-800-252-9398

Authorized dealer for Volvo Construction Equipment, Manitowoc, Case, Grove, National Crane, Terex Cedarapids, Dressta, Fassi, Sennebogen, Taylor, Allied, Terex Finlay and Jekko.

40-41_Software.indd 45

Quebec Boucherville 1-877-674-8380

Atlantic Dartmouth 1-800-565-1916

Ontario Brampton 1-866-562-2806

www.strongco.com

13-10-10 2:46 PM

RISK By David Bowcott

Planning for success

hy are we so anxious to get started on our key projects that we are willing to forgo strong planning practices that will almost certainly improve our chances for success? There’s a feeling that if we aren’t actually doing what we have set out to achieve, then we are wasting time. It seems most of us value action over planning. We’ve all heard the saying “measure twice, cut once” and yet we seem to prefer measuring once and getting right to the cutting. With all the great ideas I’ve seen come across my desk to effectively manage risk on the development and operation of an asset, none trump the impact that good preconstruction planning brings to a project’s success. Procurement practices that are established with input from all key stakeholders, if followed, provide the greatest assurance that a project will go ahead according to plan. Owners and their key stakeholders—like shareholders, taxpayers and debt—should all delve deeply into their procurement practices (or their investment’s procurement practices) to determine if they meet or exceed what is deemed best in class. Here are a few areas to consider when reviewing your procurement practices: Prequalification of Key Stakeholders: Have strong counter-party risk assessment practices prior to picking your team. Gone are the days when you should feel embarrassed to ask somebody to see information on how they run and finance their operations. Most progressive organizations welcome transparency and scrutiny in order to find new ways to improve. If the concern is confidentiality, there are practices and

protocols that can be used to ensure that information will not be disclosed. Design and Construction Collabortion: Practices that foster communication and transparency between your design and construction teams should be encouraged. Even better is finding ways to encourage collaboration and transparency between design, construction and operations. Don’t be afraid to implement a “no dumb questions” policy amongst stakeholders in all phases in order to uncover potential risks and find ways to manage them. Insurance and project finance data clearly shows when there is increased collaboration and transparency amongst the players in all phases of an asset’s life, the risk of claim (for insurance) and credit default (for project finance) decreases. Design Clarity and Completeness: Design clarity and completeness correlates very highly with project execution and success. Dollars spent prior to construction on design and design clarity, are well worth their investment. This is particularly true for complex asset developments. Risk Allocation: Quite simply, risks are best managed by those with the best ability to manage them. Once you’ve identified key project risks in all phases of the asset’s life, make sure you assess very carefully who amongst all stakeholders is best able to manage the risk. From there recognize you will have to pay for risk allocation decisions. Contract Clarity: Once allocation decisions have been made, ensure they are transparently allocated through contracts such as design, construction, subcontracts, and operations and maintenance. Clear contracts make for clear responsibility —

clear responsibility makes for limited risk of dispute. Bid Process: We all have deadlines to make but sometimes we can increase the risk of failure when we place more value in deadlines than we do in clarity of scope. The lump sum bid process may lead to lowbids that on the surface look good, however, by virtue of the high-pressure process used, could lead to long-term unforeseen costs in construction and operations. Planning Costs: Up front planning is a worthwhile investment in your project—but it costs money. If you choose to allocate those up front planning costs to those bidding on your project, don’t be surprised if some of the best and brightest shy away from bidding on your project. Thoughtshould be given to the ideal split for pre-bid costs considering both the ability to provide you with most efficient pricing while ensuring you attract the best and the brightest from within the construction and operations community. To improve your procurement process. Take the time to assess your procurement processes and bring in key stakeholders to seek input so you can arrive at the ideal process that assures your asset is delivered and operated to an optimal level.

David Bowcott is senior vice-president, national director of large/strategic accounts at AON Reed Stenhouse Inc. Send comments to editor@on-sitemag.com. MUST

AVAILA WHILE

OCTOBER 2013

14825_Ban 42-43_RISK.indd 46

13-10-10 2:36 PM

ROCKY MOUNTAIN WATER. HIGH COUNTRY BARLEY. NOW IN CANADA.

MUST BE LEGAL DRINKING AGE. AVAILABLE AT PARTICIPATING RETAILERS. WHILE SUPPLIES LAST.

14825_Banquet_HPAC_Ad.indd 1 42-43_RISK.indd 47

2013-09-27 9:58 AM 13-10-10 2:36 PM

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.)

DEADLINE FOR ENTRIES IS

November 8, 2013 “Oh is the earth going to move tonight?”

THIS MONTH’s winner is: Harold Mimico

SEND YOUR ENTRY TO:

Got a Funny Photo?

Send it in so our readers can exercise their senses of humour!

mail

80 Valleybrook Drive, Toronto, ON M3B 2S9

fax

(416) 510-5140

e-mail

editor@on-sitemag.com

ADVERTISERS’ INDEX & WEBSITES ADRIAN STEEL....................www.adriansteel.com............................................ 8

MAXWELL SYSTEMS.......www.maxwellsystems.com/onsite..................... 2

CATERPILLER......................www.cat.com......................................................... 21

MERCEDES SPRINTER......www.The New Sprinter.ca.................................. 52

CONEXPO.............................www.conexpoconagg.com.................................. 51

MULTIQUIP..........................www.multiquip.com.............................................. 43

COORS...................................www.coors.com..................................................... 47

SMS EQUIPMENT...............www.smsequip.com.............................................. 49

DETROIT DIESEL.................www.demanddetroit.com.................................... 27

STIHL LTD.............................www.stihl.ca........................................................... 41

DOOSAN INFRACORE CE.www.doosanequipment.com.............................. 37

STRONGCO..........................www.strongco.com......................................... 11, 45

FORD......................................www.ford.ca............................................................. 7

TOPCON................................www.topconpositioning.com.............................. 13

FREIGHTLINER....................www.FreightlinerTrucks.com/WorkSmart........ 4 GM SIERRA..........................www.gm.ca............................................................. 33

VIEWPOINT CONSTRUCTION SOFTWARE..........................www.viewpointcs.com/onsite............................. 9

HCSS......................................www.HCSS.com/On-Site.................................... 10

WACKER NEUSON.............www.wackerneuson.com.................................... 39

KUBOTA................................www.kubota.ca...................................................... 19

WESTERN STAR.................www.westernstar.com......................................... 29

MACK....................................www.MackTrucks.com/Granite......................... 25

WORLD OF CONCRETE......www.worldofconcrete.com................................ 15

48 / October 2013

48-49_Funny Folder.indd 48

13-10-10 5:08 PM

SMS Equipment holds a unique position in the industry as a one-stop supplier of the most complete range of equipment. We offer only world-renowned brand names that meet your standards of reliability and productivity. With various locations to serve you across Canada, SMS Equipment is your local equipment and solutions provider. Komatsu offers an unrivalled equipment range in terms of its breadth, its quality and its technology. The Komatsu machines deliver unbeatable efficiency, reliability and productivity. Komatsu Rents provides short-term rental solutions for our customers with a full line of Komatsu and complimentary OEM equipment. More than 280 machines available for immediate rental! Rely on the Wirtgen Groupâ&#x20AC;&#x2122;s full range of products for new construction and rehabilitation of roads. SMS Equipmentâ&#x20AC;&#x2122;s sales and service experts, based close to your doorstep, offer the expertise and all-round support you need.

Western Region: 1 866-458-0101 Eastern Region: 1 800-881-9828

smsequip.com

48-49_Funny Folder.indd 49

13-10-10 3:07 PM

CONTRACTORS & THE LAW By Matthew Swanson & Blair Rebane

ost construction contracts require that changes to the original scope of work be approved in writing. Despite this fact, there are many instances where the parties do not follow the terms of the contract and do not document changes properly. The parties may not be able to keep up with the required documentation or they may not realize what the contract requires to properly affect a change. However, one of the more common issues that owners and contractors face is whether a purported change is an “extra”. In such cases, costly disputes often arise.

WHAT IS AN EXTRA? An “extra” is work that is not included within the original scope of work as specified within the contract documents. While extra work may arise for a number of different reasons, it often happens because the owner adds elements to the project. Contractors sometimes assert that extras arise from clarifications. In any event, where the amount or type of work that needs to be accomplished increases, the cost to complete that work can also go up.

HOW ARE EXTRAS PROPERLY DOCUMENTED? In most construction contracts (including the CCDC 2 Stipulated Price Contract) extras are required to be documented by way of written change orders. More often than not, change orders will specify the scope of the change and the corresponding adjustment to contract price (or, alternatively, a method by which such an adjustment can be made). Adjustments can also

Change orders matter be made to the contract time, if any is needed. Change orders require the consent and agreement of the parties, and are not to be confused with change directives—written instruction by a consultant, signed by the owner, to proceed with a change.

WHY DO CHANGE ORDERS MATTER? In the absence of written change orders, claims by contractors for additional compensation are not easily made. To receive compensation, contractors must prove the following: a) t hat the extra work they performed is not within their original scope; b) t he work performed was done at the request of the owner; c) t he owner promised or represented that further payment would be forthcoming; d) t he owner waived any contractual provisions requiring changes to be made in writing, or otherwise acquiesced to the change by ignoring those provisions. In considering such issues, the courts will look to the conduct of the parties. Their conduct is often scrutinized over multiple days of trial, through direct and cross-examination. In some instances, adverse findings as to credibility are made. In recent cases that have come before the courts, the critical issue for examination was whether the owner knew that the work it had requested would increase the cost to the contractor. Where the conduct of the parties indicates that the owner was aware that extras would result in increased cost, the owner may not be able to rely on a contract provision that requires changes to be made in writing in order to refuse additional payments. In these circumstances,

the courts often find that the owner has waived the contract provisions requiring written change orders. However, where the owner has previously rejected the assertion of extras and has stated that additional funds will not be forthcoming, the situation for contractors becomes fraught with risk. Where this occurs, and where the contractor nonetheless performs the extra work without protest, contractor claims have been denied. In these cases, the rationale for rejecting the claim is that performance of the work constitutes an admission by the contractor that the work performed was within the original scope of the contract.

BEST PRACTICES To the extent possible, extras should be documented by change orders that detail the change in scope, price and project time. Where disagreements arise that prevent change orders from being issued because the owner disagrees that the purported work is, in fact, an extra, a contractor may have to perform and may have to do so under formal protest, indicating, among other things, that it disputes the conclusion of the owner and the contractor should maintain its position as to scope and pricing.

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

Ma Ma Ma

50 / October 2013

46-48_Law.indd 50

13-10-10 2:44 PM

REGISTER NOW TOTO SEE WHAT’S NEW REGISTER REGISTER NOW NOW TO SEE SEE WHAT’S WHAT’S NEW NEW REGISTER REGISTER NOW NOW TOTO SEE SEE WHAT’S WHAT’S NEW NEW Get the ultimate up-close look at the future of construction. Get the Getultimate the ultimate up-close up-close look at look theatfuture the future of construction. of construction. Registration is now open for the show that offers immense unveiling of all the newest Get the Getultimate the ultimate up-close up-close look at look theatan future the future of construction. of construction.

Registration Registration is now open is now for open the for show the that show offers thatan offers immense an immense unveiling unveiling of all the of newest all the newest equipment, technology and product breakthroughs in construction. From earthshaking Registration Registration is nowtechnology open is now for open the for show the that show offers thatan offers aninimmense unveiling unveiling of all the ofearthshaking newest all the newest equipment, technology and product and product breakthroughs inimmense construction. construction. From From big ironequipment, to groundbreaking innovations youbreakthroughs don’t even know exist, it’s all earthshaking assembled in one equipment, equipment, technology technology and product and product breakthroughs breakthroughs in construction. in construction. From earthshaking From earthshaking big iron big to groundbreaking ironyou to groundbreaking innovations innovations you don’t youeven don’t know evenexist, knowit’s exist, all assembled it’s all assembled in one in one place to help work smarter. big iron to groundbreaking iron to groundbreaking innovations innovations you don’t youeven don’t know evenexist, knowit’s exist, all assembled it’s all assembled in one in one place tobig place help to you help work yousmarter. work smarter. place toplace help to you help work yousmarter. work smarter.

Register now at www.conexpoconagg.com to save over 30%! Register Register now at now www.conexpoconagg.com at www.conexpoconagg.com to save to over save 30%! over 30%! Register Register now at now www.conexpoconagg.com at www.conexpoconagg.com to save to over save 30%! over 30%!

46-48_Law.indd 51

13-10-10 2:45 PM

Accommodate more. Consume less. The All-New 2014 Sprinter. Starting at $39,900*. We don’t just measure efficiency in litres. We measure it in time saved. And thanks to the All-New 2014 Sprinter, you’ll get more out of both. Learn more about the Sprinter efficiencies at TheNewSprinter.ca.

©2013 Mercedes-Benz Canada Inc. *National MSRP pricing is shown and is intended for information purposes only. Prices do not include taxes, levies, fees, freight and delivery charges, insurance and licence fees, as well as any other products or services not listed that may be available to you through your selected Mercedes-Benz dealership. Vehicle prices subject to change. Dealer may sell for less. These prices do not apply in provinces with total/all-in pricing requirements. Please contact your local dealership directly for exact pricing details and total pricing applicable in those provinces.

010758.32_SprinterContractingAd_HPAC8.125x10.875EN.indd 1 46-48_Law.indd 52

9/30/13 4:31 PM 13-10-10 2:45 PM