On-Site June 2023

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RISING TO THE TOP

JUNE 2023 MACHINE ATTACHMENTS THE NEXT GENERATION CONSTRUCTION LAW DELAYS & CANCELLATIONS MULTI-FAMILY HIGH-RISE LOW CARBON COOLING CANADA’S
TOP CONTRACTORS
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on-sitemag.com / 3 44 COVER STORY 27 Top Contractors Our list of the country’s largest builders. 30 Rising to the Top Even the addition of inflationary pressure to the list of ongoing challenges could not keep Canada’s construction sector down in 2022. 36 Top 5 Under 50 Fillmore Construction: Nurturing collaborative relationships IN THIS ISSUE 5 Comment Infrastructure leading the way 8 News The major developments 12 Construction Stats The key figures 44 Sustainability Cooling on the cutting edge 46 Infrastructure Going green with stormwater management 48 Contracts Underground construction claims 27 COLUMNS 50 Technology Taking data to the next level 52 Risk Managing risks of theft 54 Contractors and the Law Delays and cancellations: Best practices and insights 16 Equipment Attachments: The next generation 20 Equipment Maintenance tips for construction attachments 16 VOLUME 68, NO.3/JUNE 2023 49 Index of Advertisers COVER PHOTO: © NOKHOOG / ADOBE STOCK FEATURES

Leading the charge

If you are looking for high points in Canada’s economy, our construction industry’s infrastructure sector is a great place to start. Each year, when compiling information for our annual Top Contractors in Canada report (the latest of which happens to start on page 23) I pore over countless industry and economic reports looking for potential themes and trends. This year, infrastructure was front and centre.

Alongside the expected woes about inflation, heightened interest rates and labour shortages, several of the reports went out of their way to put a spotlight on the volume of infrastructure projects that are in the works or in the backlog pipeline in Canada.

“Strong infrastructure investment continues to fuel project pipelines, with Quebec and Ontario attracting investment in critical sectors,” touted Turner & Townsend as it presented the 2023 edition of its Canada Market Intelligence Report.

“Infrastructure continues to drive the wider construction sector,” stated the Royal Institution of Chartered Surveyors in its Canadian Construction Monitor

With companies still navigating return-towork formulas and mortgage rates remaining higher than when pre-construction deposits were plunked down on new homes and condos, soft spots do exist in the construction sector, but the resiliency of several non-residential segments, including infrastructure work, is lending an air of optimism to Canada’s ability to weather the economic storm clouds that have been hovering for some time now.

Transportation plans are pushing forward as new roads and mass transit projects are being built, the warehouse and distribution segment remains a hot spot, development is in the works on Toronto’s waterfront Ontario Place

property, and Calgary may finally get a new arena. There’s a lot of activity in our sector.

Of course, busy sites put additional strain on a tight labour market, so this level of busy is pushing contractors to put extra focus on how to best deploy their teams and schedule their subs. Along with supporting efforts to attract new entrants to Canada’s construction sector, such as the move by Professional Engineers Ontario to eliminate the Canadian experience requirement for a newcomer to become licensed via their organization, there’s a role in the labour puzzle that can be played by technology.

Reading some of the recent headlines about AI make it sound like society is on the verge of having James Cameron’s Terminator play out in real life, but the use of AI is already happening in the world of construction, helping to analyze large quantities of data, automate the takeoff process, generate estimates, and assist with scheduling. All of which allows us to become more efficient and stretch our capacity and work as efficiently as possible.

And AI technology is hitting in some unexpected places. The cover of this edition of On-Site features an image that has AI roots. If you look closely, you might spot a few things that are not quite perfect in the image, but at arms-length, it’s a compelling photo that draws you in. Come to think of it, that might be rather representative of the current state of AI. In some respects, the technology holds a lot of promise, and is even working well in some current applications, but it should not be viewed, nor relied upon, as infallible.

Until next time, stay safe and do good work.

on-sitemag.com / 5
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MEET OUR CONTRIBUTORS FOR THIS ISSUE

JACOB STOLLER / Principal, StollerStrategies

On taking data to the next level: “Advanced data collection methods — cameras, drones, IoT sensors — are widely available, and virtual BIM models now support embedded content so that users can easily access it. Getting to the point where the entire business runs on digital platforms, however, will require a quantum leap.”

DAVID BOWCOTT / Managing Director, Construction, NFP Corp.

On managing risks of theft:

“These crimes often end up hitting victims twice as not only are they missing items they were relying on, they must now also deal with replacing missing items that could be scarce in the supply chain, or more expensive.”

SARAH ANDREW AND SAMANTHA PAQUETTE / GHD and Region of Peel

On stormwater management:

“As it moves along impervious surfaces, such as streets, sidewalks, roofs, and driveways, stormwater picks up almost everything in its path. This can include dirt, garbage and other pollutants, such as oil and grease, fertilizer, and pesticides. There can also be a change in temperature as it flows.”

JONATHAN GARDNER / Product Manager, Kubota Canada

On maintaining attachments for construction machinery: “Regular maintenance can include checking for missing or broken parts, greasing regularly, cleaning oil and debris, and more. The care of attachments is also a key factor in their performance. They should be washed after use, stored properly, and used for their designated jobs.”

JOSEPH CAMPBELL / Borden Ladner Gervais LLP

On delays and cancellations

“A party seeking to cancel a project must closely examine the applicable contractual provisions to ensure compliance with the cancellation procedure and avoid any breach or claim scenario.”

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INDUSTRY>NEWS

Net-zero carbon capture and storage facility coming to Canada

The cement industry’s first global full-scale Carbon Capture Utilization and Storage (CCUS) facility will be developed at Heidelberg Materials’ Edmonton location. The new facility, which Heidelberg Materials anticipates being operational by late 2026, will capture more than 1 million tonnes of CO2 annually from its Edmonton cement production facility and the combined heat and power facility that is integrated with the capture process.

“Our Edmonton CCUS project as the world’s first carbon neutral cement plant is another milestone in Heidelberg Materials’ ambitious drive to lead the industry to net zero, and we are excited to begin realizing this as soon as possible,” shared Chris Ward, president and CEO of Heidelberg Materials North America. “We are very fortunate to partner with the government of Canada in this endeavor and we look forward to continued collaboration as we move forward with this exciting project.”

A project feasibility study was completed in 2021. Last year, Heidelberg Materials committed $25 million in Q3 to support the front-end engineering and design processes critical to the project’s success.

“There is a growing urgency for rapid decarbonization in high-emitting sectors, including the cement and concrete industry, and by working hand in hand with the industry, we can support the adoption of innovative technologies that will contribute to lower emissions and increased competitiveness,” stated François-Philippe Champagne, Canada’s Minister of Innovation, Science and

Toronto continues to lead crane count

Industry. “Carbon capture is an important tool in our fight against climate change, and Canada is proud to be partnering with Heidelberg Materials in the development of this innovative clean technology.”

“This pioneering initiative places the City of Edmonton at the epicenter of the cement industry’s decarbonization efforts,” said Oliver Patsch, president of the Northwest Region for Heidelberg Materials North America. “We welcome the support from the government of Canada and look forward to the next steps in this industry leading CCUS project.”

Despite continued workforce challenges and economic uncertainties, new construction projects continue to break ground, as was indicated in the most recent Rider Levett Bucknall (RLB) North American crane index. As has been the trend for several years, Toronto continued to lead the look at 14 key markets in Canada and the U.S. That city’s skyline grew higher with a net of eight additional cranes in the Q1 2023 edition of the index.

In the six months leading up to the Q1 report, 31 projects were closed out in Toronto, but 37 new projects stepped in to push the count of cranes north. Residential projects saw an increase of 13 cranes, while commercial projects dropped six.

Overall in the North American index, there was a nominal increase of seven per cent (34 cranes), from the Q3 2022 count. Of the 14 cities surveyed, eight experienced an increase, two decreased, and four held steady. In Calgary, the other Canadian city in the index, the count was down one crane from the previous edition of the report.

RLB anticipates the number of cranes to remain high this year, saying that despite uncertain market conditions, construction projects will continue to break ground.

8 / JUNE 2023
INDUSTRY NEWS
PHOTO: COURTESY OF HEIDELBERG MATERIALS PHOTO: COURTESY OF RIDER LEVETT BUCKNALL Lehigh Cement Edmonton Plant.

Unveiling the future of Ontario Place

The Ontario government is aiming to make a revamped Ontario Place into a year-round family destination. Details of the plan, which includes expanded parkland, beaches and waterfront access, an upgraded concert venue, the Ontario Science Centre, and a family-friendly wellbeing destination, were recently unveiled at the park.

“We’re bringing more to Ontario Place with more beaches, more greenspace, more trails and more fun with the Ontario Science Centre, a year-round Live Nation concert venue and expanded food and beverage offerings so families can enjoy a meal together,” said Premier Doug Ford. “Together with our partners, we’re building a world class, year-round destination that’s fun for families, students and tourists to enjoy for generations to come.”

The Ontario Science Centre will find its new home in a custom-built, state-of-the-art facility that will include the iconic Cinesphere and Pod complex.

The province is also finalizing an agreement with Live Nation that will create a new, year-round concert venue attraction. The brand-new amphitheatre will increase capacity to 20,000 fans in an all-season venue that will still include the famous grassy amphitheatre.

“We are continuing to make progress on our vision to create a cultural and recreational landmark that will, once again, be fun for everyone,” said Kinga Surma, the province’s minister of infrastructure.

On display at the press event were a series of recommended design concepts for the future public spaces, including on the East Island and the expanded shoreline of the West Island.

The concepts include Indigenous culture and place-keeping features and illustrate how the site will be revitalized and enhanced with new public trails, parkland, beaches and swimming areas with better access to the waterfront.

Plans call for an underground public parking facility with electric bus and vehicle chargers. Other transit and transportation options will include new pedestrian and cycle paths, as well as new connections between Ontario Place and the Exhibition grounds, directly to the Ontario Line subway.

To prepare for redevelopment, site servicing work will begin this spring to upgrade and modernize Ontario Place’s existing infrastructure, such as water, electrical and gas services.

on-sitemag.com / 9
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EllisDon announces Hawe as incoming CEO

Geoff Smith is stepping down as president and CEO of EllisDon this month. The company’s board of directors, board chair Gerald Slemko and Smith have appointed Kieran Hawe, EllisDon’s chief operating officer, construction, to succeed Smith as CEO.

Smith will continue to serve on the board as executive chair and will retain responsibility for the company’s digital and data strategy and execution, as well as for EllisDon’s Windjammer Landing Resort in Saint Lucia. Gerald Slemko, current chair, will assume the new role of deputy chair.

“Since Kieran joined the company, and more so in his current role, he has exhibited an ideal combination of humility, determination, and leadership both through example and direction, all of which have combined to position EllisDon as a leading construction services company across the globe,”

said Smith. “As importantly, he thoroughly personifies EllisDon’s values and purpose, making him a natural fit to lead the next generation of EllisDon employees. I am both proud and excited for Kieran to assume the role of CEO.”

“The critical and difficult undertaking of

selecting a successor was made significantly easier as a result of Geoff’s leadership, mentorship and development of a company full of highly skilled and capable people,” added Slemko. “Kieran is perfectly suited to take over and successfully lead the company as its next CEO.”

American Global expands into Canada

American Global, one of the largest privately held construction brokers in the United States, has announced its expansion into Canada. The Canadian operations will be led from the Greater Toronto area under the direction of Kent Peters, the newly appointed president of American Global of Canada, ULC.

Peters has more than 34 years of experience in the surety, performance security and credit products space for contractors in Canada, including more than a dozen years as a construction surety and risk management executive, serving as national director for a global broker providing products for the P3 space.

“With offices already established in Europe, the expansion across our own border, into Canada, was a natural progression that will enable American Global to provide clients with additional international capabilities and resources,” stated American Global CEO Michael Marino.

10 / JUNE 2023
PHOTO: COURTESY OF CNW GROUP/ELLISDON CORPORATION
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From left, Geoff Smith and Kieran Hawe.

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WHAT’S POSSIBLE

CONSTRUCTION STATS

A selection of data reflecting trends in the Canadian construction industry

NON-RESIDENTIAL BUILDING CONSTRUCTION CONTINUES TO POST GAINS

Growth in the non-residential building construction sector was not enough to offset residential declines, resulting in an overall drop of 1.3 per cent in building construction investment in March, reports Statistics Canada. The cumulative total for the month came in at to $20.3 billion. By sector, residential construction investments fell 2.1 per cent to $14.6 billion, while non-residential went up by almost a full per cent, to $5.7 billion.

Although all segments of the non-residential sector were positive, gains were heavily driven by industrial construction investment. That segment increased for a 16th consecutive month, rising 3.4 per cent to $1.2 billion. Projects like the expansion at Cariboo Memorial Hospital in Williams Lake, B.C., contributed to growth in the institutional construction segment. That segment bumped forward by 0.7 per cent, to $1.4 billion in March. And commercial construction investment nudged slightly forward as well, edging up 0.1 per cent to $3.1 billion. Multi-unit construction fell 2.4 per cent to $6.7 billion in March.

BUILDING PERMITS JUMP 11 PER CENT

Record-highs in the non-residential sector offset weakness in the single-family residential component to help push the total monthly value of building permits in Canada upwards by more than 11 per cent in March, according to figures from Statistics Canada. Overall, $11.8 billion of permits were issued in the month.

The non-residential sector experienced a gain of 32 per cent as the total monthly value of non-residential permits hit a record high of $5.2 billion Among the permits pushing the sector higher were 10 individual non-residential projects that posted values of over $100 million each, the largest of which were the $570 million new General Motors and POSCO Chemical cathode active materials facility in Becancour, Que.

By segment, industrial building permits rose 16.7 per cent to $1.3 billion; commercial permits spiked upwards by 41.5 per cent to $2.8 billion; and institutional permits were up 29.5 per cent at $1.1 billion.

On the residential side, construction intentions stalled. Following a promising February, March saw the value of new residential permits taper off by a percentage point to $6.6 billion. Nationally, permits were issued for 21,400 new dwellings in the month.

20,130,000 Unemployment Rate

5.0% Construction Employment

1,597,600

CONSTRUCTION EMPLOYMENT RISES IN APRIL

Across all business sectors, employment in Canada rose by 41,000 in April. These latest figures from Statistics Canada’s Labour Force Survey indicate that growth was strongest in part-time employment, although full-time work held steady.

The employment rate—the share of the population aged 15 and older who are employed—held steady at 62.4 per cent for the third consecutive month in April.

Within the construction sector, seasonally adjusted gains landed at 7,000 positions for the month, and more than 50,000 over the past 12 months. Compared to April of 2022, there were 52,400 more workers in the sector in April of 2023.

12 / JUNE 2023
Investment in non-residential construction, March 2023 (in $Millions) Canada 5,693.7 Newfoundland and Labrador 27.5 Prince Edward Island 20.7 Nova Scotia 66.1 New Brunswick 62.4 Quebec 1,318.3 Ontario 2,385.6 Manitoba 189 Saskatchewan 114.9 Alberta 672.8 British Columbia 815.2 Yukon 12.6 Northwest Territories 3.9 Nunavut 4.7 TABLE: STATISTICS CANADA
Total Employment in Canada
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
INSTITUTIONAL
-0.9% Multi-Family +1.5%
+41.5%
+16.7%
+29.5%

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Expansion, Innovation & Collaboration:

How the first construction focused, US/CAN cross-border broker ensures global success

In today’s challenging market, a knowledgeable, reputable, and innovative broker can serve as a valuable business partner and key strategic advisor. So, what differentiates one broker from another? Michael Marino, Chairman & CEO of American Global believes it begins, in large part, with a company’s culture. In 2014, he set out to build a brokerage where collaboration is a core value and diversity of experience is a major differentiator. In less than ten years he has done just that, assembling a team of experts that span borders and oceans. Already one of the largest, privately held construction insurance and surety brokers in the United States, American Global has proudly become the first construction focused, US/CAN cross-border broker. So, how does their ‘culture of collaboration’ translate internationally and truly benefit the client?

Collaboration in a flat, non-siloed organization like American Global, encourages teammates to actively engage their colleagues—regardless of where they reside—in order to leverage knowledge and gain insight that adds value for their client. Many of these employees, what American Global calls ‘non-traditional’ resources, may be fairly new to the brokerage business but have a deep understanding and focused background in key areas of the construction industry—be it law, accounting, financial modeling, or even engineering. These resources work in tandem with highly experienced brokers who collaborate across the entire international platform, diving deep into a clients’ business to deliver meaningful business advice and innovative solutions… brokers like Kent Peters, newly named President of American Global’s Canadian operation.

Kent brings more than 30 years’ experience delivering complex surety, performance security and credit products to some of the largest contractors working in Canada. His commitment to ensure that clients have the best access to markets, advice and services, aligns perfectly with the values and expectations of American Global. Kent, together with the team of risk management professionals he will soon lead, will be able to offer a full suite of surety and insurance services to the Canadian construction market. Just as Kent’s new colleagues will benefit from his extensive P3 knowledge and regional relationships

he has established, he too will gain value from them. With cross-border collaboration, clients who work in any geography benefit from the talent of American Global teammates located in every geography.

Thinking outside the box

This commitment to collaboration also extends externally to the broker-client relationship, where the ‘team’ mentality promotes early engagement with frequent and transparent communications. Honest communication empowers American Global to think outside the box for their clients, unwilling to accept “the status quo.” Their team of attorneys, engineers, CPA’s, financial analysts, and experienced brokers, thrive on reviewing contracts, introducing potential JV partners, discussing risk allocation between parties, and other best practices, to generate different results and help clients grow profitably.

Creative thinking is a driving force for success and one reason American Global attracts talent like Kent Peters who has worked to create innovative performance security and credit products for the growing P3 space in Canada. Kent also played an instrumental role in the promotion and acceptance of surety bonds, in place of letters of credit. For global clients who operate in multiple countries, unfettered innovation and open communication becomes even more critical.

Local knowledge, global assets

As a broker ‘without borders’, American Global’s flat structure provides yet another benefit: the ability for clients to work with a local, regionally based leader in one of many locations across the U.S., Canada or Europe, while having access to the full breadth of global assets.

Contractors who operate across North America will enjoy seamless transactions with support and regional resources on both sides of the border. With Kent at the helm in Canada, clients can tap into his breadth of knowledge about performance security solutions or seek advice on credit and indemnity agreements or risk transfer solutions. Contracts, such as P3s or alternative energy contracts, involve multiple

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stakeholders such as project sponsors, equity partners, design teams, and lenders — each with their own interests—and each supported by their own legal, financial and risk advisors. These counterparties and advisors will rely on their experience of how transactions are achieved in their specific region. Therefore, having a globally aligned risk and performance security advisor by your side is critical. With expertise across different geographies and business cultures, American Global works as one team, toward a single goal, helping clients achieve optimal results with the least amount of friction.

Project complexity, whether due to project delivery model or technical aspects, requires even greater diversity of experience from risk advisors, and bringing the requisite knowledge to the Canadian market will be important going forward. In Canada, multi-national JVs will be the standard for infrastructure contracts (such as public transit expansion) for years to come, and a broker who can foster introductions and help forge lasting relationships will hold the key to success. Additional opportunities are sure to come from the team being assembled in Canada, along with their expertise in other insurance products and services, such as captives, SDI, risk engineering, claims and project solutions.

Working with a flexible, forward-thinking international broker is particularly advantageous for a growing business. As clients take on larger projects or expand into new geographies, insurance, surety and performance security needs change. American Global is fully equipped to grow with

their clients, providing greater global resources and extensive experience with complex placements and alternative delivery programs, all while clients maintain the relationship they’ve built with their existing American Global service team.

A win-win

American Global’s collaborative culture has clearly proven to be a win-win scenario, as they successfully serve clients across North America, Europe and Latin America. While their growth has been exponential, it has not been accidental. The decision to grow organically and methodically is in accordance with another core value of American Global, ‘one client at a time, one colleague at a time.’ As they proudly expand across the border into Canada, the call to add ‘one country at a time’ to that mantra, seems appropriate.

Kent Peters noted, “At American Global Canada, I’m excited to adopt the same business philosophy and cultural ideals that have been employed successfully throughout the rest of the company, in order to replicate their outstanding results in the Canadian market. I am in full alignment with my global, multi-disciplinary teammates, who are exclusively dedicated to serving those in the construction and infrastructure sector.”

As American Global continues to revolutionize the insurance industry, they want to remind owners, developers and contractors in Canada and around the globe, that it’s time they begin to “expect more from your broker.” Learn more about American Global at www.americanglobal.ca or contact Kent Peters, President-Canada at: kent.peters@americanglobal.com.

“With cross-border collaboration, clients who work in any geography benefit from the talent of American Global teammates located in every geography.”
Photo: American Global (L to R) CEO Michael Marino, President-Canada Kent Peters, COO David Marino.

Automation, visibility and control newest twists on machine attachments.

uckets, blades and grapples may not be the first components that spring to mind when discussing smart technology in the world of heavy machinery, but as with most other segments of the construction sector, automation is hitting the latest generation of machine attachments as well, as manufacturers aim to make jobs easier and more efficient for operators.

“Overall, we are starting to see attachments that are focused on the operator,”

says Jonathan Gardner, construction equipment product manager at Kubota Canada, as he sums up current general trends. He points to the proliferation of “smart” attachments that are making their way to market. These attachments, part of a new generation of equipment, are engineered so that the machinery senses the attachment that is being hooked up, automatically adjusting hydraulic flow and other parameters. Some systems will also sense such factors as pressure levels in the

attachment, which can then be fed back to the operator.

NEXT GENERATION THE B

Caterpillar’s suite of smart attachments includes its line of Smart Blades. These are described as offering “unique operating styles with fewer total hand movements that mirror heritage machines such as a Cat motor grader, Cat dozer or Cat backhoe loader.”

When using these blades, the in-cab screen will provide the operator a range of feedback about the attachment’s operation, such as slope or main fall.

The Volvo Dig Assist machine control system is another example where automation of attachments is making inroads on construction sites.

16 / JUNE 2023
EQUIPMENT PHOTO: COURTESY OF CATERPILLAR

“On some of our excavator models, Dig Assist can also include what we call Active Control,” explains Todd Cannegieter, product manager for attachments and special applications at Volvo Construction Equipment. “This uses electro-hydraulics and the machine’s computer to guide the digging process and prevent operators from digging below the programmed depth.”

With Dig Assist, the boom and bucket movements are automatically adjusted to maintain an even grade and cutting angle. A somewhat similar technology, Swing Control, allows operators to pre-program the location of the trench and pile to assist

in digging and truck loading. Although automatic, the company does advise that the system can be overridden with the joystick when necessary.

SPIN AND TILT

Not necessarily a new product for all companies in the sector, but a trend that is definitely picking up speed, is the use of rotator couplers for excavators in the 4- to 35-ton range. These units allow operators to spin and tilt buckets, enabling much more versatility in task completion. Most tiltrotators make it possible to rotate attachments a full 360 degrees, and to tilt

40 or 45 degrees, left or right.

After first having gained popularity in Europe, tiltrotators are now becoming more common in North America, says Jacob Sherman, product and dealer marketing manager at DEVELON.

“Operators can perform more sophisticated types of work,” he explains, “such as digging underground or around buried pipes to replace some work that was previously done with manual labour.”

Cannegieter adds that for trenching and ditch creation, tiltrotators enable operators to continue working without constantly repositioning the excavator, saving significant time for a given job.

“Picture digging around a manhole,” he says. “With a traditional excavator, you would have to move the machine several times to completely dig it out. With a tiltrotator, you can maneuver the bucket completely around the manhole from one spot.”

Volvo excavators now feature Steelwrist tiltrotators, which are suitable for trenching in confined spaces, ditch creation, and cleanup, grading and anything that requires multiple attachments. DEVELON has also partnered to offer Steelwrist tiltrotators and a rotating grapple for its crawler excavators and mini-excavators.

Among John Deere’s base-coded tiltrotators, attachments and packages for excavators in the 2.6- to 35-ton size classes, machines that are five tons and larger come with a feature called EC-Oil, which allows for fast hydraulic attachment changes –estimated by the company to take about 15 seconds without leaving the cab.

At Caterpillar, the manufacturer has launched a new TRS4 tiltrotator for its MHE mini excavators for general underground, utility, homebuilding and grading applications. Scott Britton, Cat attachments marketing manager, explains that because the TRS is available in all common couplers (pin-on, pin grabber or S-style), contractors can now purchase this advanced attachment without needing to purchase a much larger machine.

The TRS4 has an oil bath lubrication for the worm gear and screw, which he says reduces the maintenance service

on-sitemag.com / 17
PHOTO: COURTESY OF VOLVO CE

interval and reduces the overall wear when compared to a grease-only setup.

QUICK COUPLERS

In addition to expanded tilting options, the industry is also seeing advancement on coupler options to help attach the attachments to the machine.

For example, Volvo now offers two main kinds of quick-connect couplers, including one that has just been recently updated. The S-type of Volvo’s dedicated coupler/ bucket interface was recently redesigned to incorporate operator feedback in the cab for the coupler-to-attachment interface. Also available from the company is its hydraulic universal quick coupler with front-pin lock, which picks up all Volvo direct-fit attachments.

ADVANCING VISIBILITY

Cameras are helping make jobsites safer for workers and operators, and better visibility is also a factor when it comes to the use of attachments, helping improve both accuracy and safety. DEVELON’s Sherman

points to optional all-around view monitoring camera systems available on his company’s equipment that display a full view of the excavator’s surroundings, all around the machine but also of the top, that can assist operators work efficiently.

But visibility is not only available via windows and cameras that monitor the perimeter of machines. DEVELON offers its industry-exclusive transparent bucket technology for its -7 Series wheel loaders. First introduced in 2021, the feature is now standard on all 2023 -7 Series wheel loaders.

The company’s wheel loader product manager, Bill Zak, says that the system’s processor automatically adjusts the input from two cameras into “a single image that makes the bucket appear transparent on the wheel loader’s in-cab monitor.” This provides an unobstructed view, he explains.

SNOW, STUMPS, MULCH AND BRUSH

Of the three new attachments introduced by Kubota Canada for 2023, two of them are for excavator equipment. These include a plate compactor for 1.5- to 9-ton exca-

18 / JUNE 2023
EQUIPMENT
PHOTO: COURTESY OF VOLVO CE PHOTO: COURTESY OF DEVELON PHOTO: COURTESY OF KUBOTA CANADA

vators and a stump grinder for 3- to 8-ton excavators. The company’s stump grinder, which allows an operator to grind stumps up to 10” below ground with the 24” cutting wheel, can be used on multiple machines, so long as the operator has the appropriate hitch.

The other new Kubota attachment is a snow blower for compact track loaders and skid steer loaders. It has a foldable chute and a serrated auger designed to allow it to tackle all types of snow conditions.

Also aimed at clearing sites, John Deere’s new RE40 and RE50 brush cutters work with John Deere excavators but are also compatible with many other 3.5- to 10-ton excavators on the market. Similarly, the ME36 and ME50 mulchers work with John Deere excavators and many other 5- to 10-ton excavator models. Both have a new polycarbonate front window guard to better protect the operator from flying debris.

GRAPPLES

By fall, Cat will be releasing its new G206 and G208 multipurpose grapples. They’re suited for picking up larger items such as hardscape blocks, misshapen stones, pipe, trees and general construction debris.

“The grapple paddles are bypass style that can collapse down like a hug, making them ideal for easy storage and easy trans-

portation,” Britton explains. “The rotation for the grapple is all done via the TRS.”

Featuring rotation motors right in their grapple heads, Cat’s new G306 and G308 demolition and sorting grapples, which are set for release later this year, do not require an advanced product like a TRS. The full rotation comes from a secondary auxiliary circuit on the machine.

These attachments feature grapple paddles with hardened edges that will touch tip-to-tip for picking and placing

materials in a demolition-type application. The paddles can also go fully vertical relative to the cutting edge, a unique feature that Britton says allows the grapple to be placed up against a tight corner or wall.

A holding valve ensures that what is picked up stays within the jaws without the need to continue engaging the auxiliary circuit and potentially damaging the item being picked up.

EXPANDED COMPATIBILITY IN BLADES

Caterpillar recently introduced a kit making its GB120 and GB124 smart grader blades backwards compatible with all Cat D and D2 generations of machines. When the blades hit the market in 2020, they were restricted to the company’s D3 generation. The blades offer cross slope assist as a standard feature, with the option to add grade control via laser, dual Global Navigation Satellite System (GNSS), sonic or Universal Total Station (UTS).

Working with Trimble, Cat also recently announced the capability to add full 3D GNSS grade control to their Smart Dozer Blades with both cross slope and main fall assist on Cat 289D3, 299D3 and 299D3 XE compact track loaders. Site plans can be loaded for contouring complex designs with the maneuverability of a compact track loader versus that of a larger Cat D1 dozer.

on-sitemag.com / 19
PHOTO: COURTESY OF JOHN DEERE PHOTO: COURTESY OF CATERPILLAR

CONSTRUCTION ATTACHMENTS MAINTENANCE TIPS FOR COMMON

BOX BLADES WITH 2D GRADING SYSTEMS

Box blades with 2D grading systems are very popular on jobsites when performing fine grading. Grade is very important so the attachment needs to be working at its optimal performance, as does the 2D grading system.

Attachments greatly expand the capabilities of construction equipment, helping operators effectively tackle jobs efficiently. Once fitted to the appropriate machine, construction attachments can be used for a variety of tasks, including digging holes, cutting trenches, grading, removing pavement, removing debris, and transporting materials, among other tasks.

They are invaluable tools that can enable a small fleet to perform a wide array of applications, but to ensure optimal performance, attachments must be well-maintained. In addition to the maintenance requirements listed in the owner’s manual – which should be read prior to using an attachment – there are some general maintenance steps that should be considered as well.

BUCKETS

A universal presence on construction sites, buckets should be inspected daily for cracks and stress fractures. It is also important to inspect the bucket cutting edge (whether weld-on or bolt-on) or teeth for damage. If teeth are missing, replace them immediately. It’s a good idea to keep a supply of bucket teeth on hand for this exact purpose, because working with missing teeth will cause additional wear.

Before starting any work, always verify that the cutting edge is good. The cutting edge and side cutters can be replaced if needed, as these are wear items. Greasing all moving parts is a very important step as the box blade moves a lot during the day to get to the proper grade.

It is also important to verify that the 2D Grading System is always functioning. The best maintenance step for a 2D grading system is removing it at the end of the day and storing it properly out of the elements. Storage time is also a great time to verify that cables from the attachment to the receivers are not crimped.

COLD PLANER

Cold planer attachments can be used to repair potholes, cut utility trenches and mill asphalt. It’s important to keep the picks in good working condition. There are different kinds of picks for different applications, so select the appropriate picks for the job at hand. Picks that are missing should be replaced right away with the fork pick tool.

Adding a water spray kit can extend pick life by 20 to 40 per cent. Cold planers have many

20 / JUNE 2023
EQUIPMENT
Upkeep and maintenance will help attachments, and machinery, operate at their optimal best.
PHOTOS: COURTESY OF KUBOTA CANADA

movements, so it is a good idea to verify that the depth can be adjusted, and that tilt and side shift are working to reduce downtime on the job. All hydraulic attachments require greasing. The owner’s manual will list proper intervals.

TRENCHERS

Check that all teeth are in place and that digging-chain tension falls within the parameters specified in the operator’s manual. Chain tension is very important, and this should be checked throughout the day. Hoses must also be carefully inspected for damage or leaks. As with all other hydraulic attachments,

greasing is required. Periodically give the trencher attachment a comprehensive cleaning with a power washer to remove debris and oil.

GRAPPLES

There are many different types of grapples on the market. Like all hydraulic attachments, they require greasing. Grapples have a lot of movement and if hoses are not routed properly, damage can result. It is important to regularly inspect hydraulic hoses for leaks since they can cause considerable damage to equipment and injury to workers. While inspecting the machine, check bushings and pins for wear. Try to avoid working on sloped ground to prevent wear and accidents, and always doublecheck that the grapple attachment is properly secured before operation begins.

BE PROACTIVE

Attachment upkeep helps projects go more smoothly while prolonging the life of an attachment and the machine to which it is attached. Regular maintenance can include checking for missing or broken parts, greasing regularly, cleaning oil and debris, and more.

The care of attachments is also a key factor in their performance. They should be washed after use, stored properly, and used for their designated jobs. Frequent maintenance checks also provide the opportunity for operators to get a sense of operating parameters and best practices.

Your local dealer can provide advice about construction equipment attachments offered for your machinery, as well as details about regular maintenance routines that will keep your attachments in prime working condition.

on-sitemag.com / 21 Hand protection for construction hazards 800-265-7617 superiorglove.com/construction OnSite_SuperiorGlove_June23.indd 1 2023-05-26 9:36 AM
Jonathan Gardner is the construction equipment product manager with Kubota Canada.
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THE TOP 40 Page 27

RISING TO THE TOP Page 30

TOP FIVE UNDER 50 Page 36

LISTINGS Page 38

CANADA’S TOP CONTRACTORS

TOPPING OUT WITH PCL

PHOTO COURTESY OF PCL

Committed to Protection and Growth

Aon is in the business of better decisions and we are proud of our years of support for the Canadian construction industry.

aon.com

WELCOME LETTER

On behalf of Aon, We are proud to continue our sponsorship of On-site’s Top Contractors issue for the sixth consecutive year. Over the past three years, we have witnessed disruptive events that significantly stressed the global economy: The pandemic and our governments’ response of lockdowns, throttling of trade, and forced business closures followed by several stimulus packages disrupted global trade and monetary systems. Adding to a pre-pandemic trade war environment, the increasing prospect of global armed conflict originating in Eastern Europe has boiled over to manifest the most disruptive economic events that the modern world has ever seen.

The sum of the resulting consequences has started to manifest in multiple ways. The just-in-time delivery and global supply chain system is showing structural cracks in its foundation. Central bank induced inflation created price uncertainty and eroded living standards. Rapidly increased interest rates have further aggravated pricing risk and have started to impact budgets. While the labour market has remained strong and infrastructure spending remains robust, slowdowns in some sectors of the economy remain inevitable. The best hope is for a soft-landing however given the current global economic and geo-political environment, clarity is not expected anytime in 2023.

As the world’s leading risk advisor and broker to the construction and infrastructure industry, Aon’s Global Construction and Infrastructure Group remains committed to helping you navigate through this uncertainty. Our best-in-class Canadian practice is here to support the Canadian construction and infrastructure sector at all levels of the marketplace, bringing the best advice and experience from around the world to help you make better decisions.

VULNERABILITY THROUGHOUT THE SYSTEM

Despite the underlying stressors, the re-opened world economy is attempting to normalize with commodity prices now similar to those last seen pre-pandemic. However, the disruption of the past three years witnessed high volatility evidenced in supply chain fragility, product shortages and price variability. This created systemic vulnerability and individuals and enterprises are now exposed to increased counter-party risk. High interest rates will cause more pain until price stability is achieved. Project economics, whether private or publicly sponsored, are exposed to the cost of capital and cost uncertainty. Subcontractors and suppliers also need to manage shortages of key supplies and labour, as well as an increased cost of capital and constrained cash flow. It is safe to assume that all of the counter-parties you engage with are themselves exposed to systemic counter-party risk and the ability to fully untangle the opaque web of inter-connected risk is challenging for all participants.

There are several tools available to mitigate counter-party risk, however none are panaceas and they can be sector, transaction and named-peril specific. Risk transfer tools are also only available once the risk has been identified and quantified. Relationships with risk advisors who specialize in and understand your business is of paramount importance, as is investment in counterparty risk assessment and mitigation of customers and suppliers. This will remain a key skill going forward.

LOOKING FORWARD

While the future is always uncertain, with the right contractual terms, operational practices, data, technology and risk finance solutions, we can help you find opportunities for sustainable growth. We consider it an honour to partner with an industry that serves as a cornerstone of the Canadian economy and our Aon team looks forward to helping your firm — and our industry — remain resilient and well-positioned for the future.

Sincere congratulations to this year’s Top Contractors. On behalf of Aon Global Construction and Infrastructure Group Leadership team and colleagues throughout Canada and the world, we thank you for the opportunity to work with you.

on-sitemag.com / 25
Doug Correa Chris McLean

SOAK UP THE SUN

We are your construction team of choice, passionate about what we do and about our partners’ needs. PCL is Canada’s Top Contractor and proud to lead the way with innovative building strategies and sustainable delivery. From fields to rooftops our Solar team, powered by industry leading experts, has been trusted to build more than 3.5 GW+ of solar projects. PCL is driving transformational change in the construction industry through leading by example. PCL.COM

E.L. SMITH SOLAR FARM Edmonton, AB

A resilient sector

Although Canada’s construction industry seems to be destined to be hit by wave after wave of challenges, its resilience showed few cracks as revenues were on the rise in 2022, as can be seen in this year’s Top Contractors list.

Despite inflationary pressures being added to the obstacles to navigate – a list that last year included supply chain tightness, labour concerns, the lingering impacts of the pandemic, and heightened inflation – revenues held steady or were on the rise at the vast majority of companies that took part in our annual voluntary survey of the industry. And the industry added a few more companies to the billion-dollar club in our list of the Top 40 by revenue as well.

Against an economic backdrop that saw inflation hit a 39-year high of 8.1 per cent in June of 2022, every single segment of Canada’s construction industry included in the On-Site survey had more companies reporting gains than declines in 2022.

Looking ahead, a report from the Royal Institution of Chartered Surveyors (RICS) listed infrastructure as driving the wider construction sector in Canada, and survey respondents were overwhelmingly optimistic about prospects for 2023, especially in non-residential sectors, so it will be interesting to see if the momentum can be maintained as the year progresses, and what our 2024 report will look like.

In the meantime, the team at On-Site would like to thank all of the companies that took the time to participate in our annual survey. Your valuable contributions make this research possible and allow us to share trends and insights with our industry.

TOP FIVE

TOP 40

on-sitemag.com / 27
COMPANIES UNDER 50 EMPLOYEES Rank Company Revenue Fillmore Construction Mgmt. $189,000,000 Orion Construction $112,406,430 Clobracon Construction Inc. $88,000,000 Rosati Construction $61,106,051 O.N.Site Construction Inc. $45,474,380
Rank Company 2022 Revenue 1 PCL Construction $7,900,000,000 2 EllisDon Corporation $5,437,326,000 3 Ledcor Group of Companies $5,000,000,000 4 Aecon Group Inc. $4,620,800,000 5 Pomerleau $4,470,000,000 6 Kiewit Canada Group Inc. $4,290,000,000 7 Graham Construction $3,600,000,000 8 Flatiron $2,631,286,779 9 Vinci $2,896,710,000 10 Bird Construction Inc. $2,377,500,000 11 Flynn $1,438,208,718 12 EBC inc. $1,160,000,000 13 North American Construction Group $1,100,000,000 14 Broccolini Construction Inc $1,066,800,000 15 Michels Canada Co. $961,279,448 16 Magil Construction $846,000,000 17 Reliance Construction of Canada Ltée. $740,000,000 18 Clark Builders $715,000,000 19 Taggart Group of Companies $672,000,000 20 Chandos Construction $632,000,000 21 FLINT Corp. $604,673,000 22 Acciona Infrastructure Canada Inc. $566,204,000 23 Maple Reinders $550,000,000 24 NorLand Limited $451,958,947 25 On Side Restoration Services Ltd. $434,741,053 26 Strike Group $430,100,000 27 Matheson Constructors $390,000,000 28 FWS $342,500,000 29 Buttcon ltd. $325,000,000 30 Leeswood Construction $300,000,000 31 Barnard Constructors of Canada, LP $265,600,000 32 Cdn Turner Construction Company $245,000,000 33 Delnor Construction Ltd. $240,600,000 34 Dawson Wallace Construction Ltd. $237,000,000 35 Keller North America $203,000,000 36 Infracon Construction Group $194,000,000 37 Gillam Group $192,000,000 38 Fillmore Construction Management Inc $189,000,000 39 Urban One Builders $188,000,000 40 Percon Construction Inc $185,000,000
1 2 3 4 5
Based on responses to research conducted by On-Site, as well as publicly available data. Some contractors chose not to participate in this research.

Pomerleau is All About Its People

There is no secret recipe behind Pomerleau’s success. Rather, the foundation of the company’s achievements lies in plain sight: on-site and in the office. From project managers to BIM coordinators to environmental specialists, the expertise that Pomerleau exudes is thanks to the employees behind its projects. With people at the centre of everything it does, Pomerleau is building a community of construction experts. Read more about some of them:

ALI SEPEHRY: INTERN

Ali Sepehry, an intern at Pomerleau, pursued a career in civil engineering because he wanted to better understand how our world is built. He was placed on the Golden Ears Forcemain and River Crossing project in Vancouver, where he quickly learned that the team was there to support him. Since he joined the project during its early stages, Ali was able to see the technical background work that goes into delivering a project. “I quickly learned that there is no shortage of work to take on in any project. Pomerleau strives to complete projects that allow for a great deal of innovation, ensuring low costs through unique methods and designs that don’t compromise quality,” said Ali.

When Ali first applied to intern at Pomerleau, he intended to stay on the project for four months, however, he quickly found that there is so much to learn on a construction site, so he extended his contract. For him, the one constant across all of Pomerleau’s projects is its people. “I don’t think I would have developed any of my skills nearly as fast had I not been working with such a great team that both taught and trusted me with responsibility. The project I was working on incorporated many different scopes of work. That, combined with the phenomenal team, led me to change my mind and stay on the project for twelve months instead. They don’t teach you about project satisfaction in school, but seeing that pipeline come out the other side of the Fraser River was satisfying beyond belief,” said Ali.

ADVERTORIAL

CHEYENNE COULTON: HEALTH AND SAFETY ADVISOR

Cheyenne Coulton is a Health and Safety Advisor. She is working on the Cape Breton Regional Hospital (CBRH) project, a joint venture between Pomerleau and Lindsay Construction. She has worked on many projects since starting at Pomerleau and has learned new skills from each one, but the CBRH project holds great significance in her career. “There are interesting stories from every project, however, being at the CBRH is an absolute privilege. This project is incredibly important not only to the nearby communities, but to all of Cape Breton. It aligns well with Pomerleau’s value of love, which is my favourite,” said Cheyenne. In 2019 she won an award at Pomerleau that recognized the love she puts into her work.

Cheyenne also won Construction Safety Nova Scotia’s, Women and Safety Leadership award in 2023 for exemplifying the highest standards in safety leadership and going above and beyond to create change. “Change would not happen without the participation and buy-in from others. Pomerleau is recognized as one of Canada’s top employers, and they have never lost the importance of family. This is how I feel about my colleagues. They are my family,” said Cheyenne.

MICHEL LEBLANC: PROJECT DIRECTOR

Michel Leblanc is a Project Director for Pomerleau Capital, the company’s investment and financial subsidiary. The subsidiary works to develop and invest in projects of socio-economic significance. Michel is responsible for overseeing all aspects of a project and facilitating fruitful partnerships. He is grateful to be working on the future Vaudreuil-Soulanges Hospital (VHS) project, which is Pomerleau’s largest project to date. Michel models his work after Pomerleau’s values, spirit and commitment. “Pomerleau stands out for its commitment to innovation and the use of new technologies in its projects. The company is constantly exploring new construction methods, such as modular construction and virtual reality, to improve efficiency, quality and the sustainability of its practices,” said Michel.

RISING TO THE TOP

Even the addition of inflationary pressure to the list of ongoing challenges could not keep Canada’s construction sector down in 2022.

Revenues were on the rise in 2022 for Canada’s Top Contractors. A quick look at the year’s Top 40 firms in Canada, as compiled by the staff at On-Site magazine, is a good illustration of the increase in spending experienced across much of the industry.

A large majority of companies that participated in our annual survey reported stable or rising revenues on the year, listing similar expectations for 2023. That should

not surprise anyone who has been following industry reports that point to the strength and resiliency that exists in Canada’s construction sector.

“Large infrastructure projects and government spending in massive healthcare and transportation projects across Canada had a positive impact on many large contractor revenues in 2022, which is a trend we will see continue into 2023,” says Mike Wieninger, COO of Canadian opera-

tions at PCL Construction.

In addition to the billions of dollars committed to large institutional and infrastructure projects by provincial governments throughout the country, Statistics Canada reported that there were more non-residential building permits issued last year than in 2021, and that construction costs were significantly higher on a year-over-year basis – a recipe that usually results in rising revenues.

30 / JUNE 2023
PHOTO COURTESY
EBC
OF

“Much of the growth we experienced in 2022 was related to pent-up demand for construction services and an overall strong North American economy,” states Bill Ferreira, executive director at BuildForce Canada. “Investment levels grew in almost every sector of construction, with particularly strong gains in institutional and government building and heavy civil work related to transportation projects.”

Looking ahead, while there are a few challenged segments of the industry, such as residential construction, the overall prognosis is one of stability and growth, with heavy construction helping lead the way. For example, in its latest Canadian Construction Monitor, the Royal Institution of Chartered Surveyors (RICS) stated that “infrastructure activity is set to remain strong over the next year.”

And the desire for more is pressing. A survey commissioned by Procore Technologies earlier this year indicated that more than 90 per cent of Canadians agreed that there is an urgent need to build more or update current infrastructure over the next two years.

While the elevated pricing experienced as a result of pandemic-influenced supply chain constraints and rising demand have started to moderate for some materials, labour costs and lending rates are on the

rise, so there is an expectation by some analysts for 2023 to be a similar ride to what was experienced in 2022, but with an adjusted list of challenges, which includes worries of a possible recession.

“The best term to describe the last two years in the construction industry would be ‘turbulent,’” sums up Cameron Archer, director of sales and marketing at Orion Construction. “Orion Construction and the greater industry faced immense challenges with unprecedented escalating material costs.” His company, like most others in the survey, was able to navigate the year to post higher revenues than a year earlier, but he and others in the industry tempered forecast expectations with acknowledgements of the

ever-present need to be on the lookout for ways to gain efficiencies and competitive advantages as they navigate higher lending rates and other economic influences.

“Despite the lifting of most mask mandates in 2022, material prices were higher than in 2021, with significant volatility in the pricing of many construction inputs, material and commodities,” states PCL’s Wieninger, explaining that production capacity and supply chains started to normalize into this year, although he pointed to the going concern of inflation. “Rising interest rates and fear of a resulting global recession have had a cooling effect on demand in many sectors of the global economy.”

That could result in some adjustment to forecasts as the current year progresses.

“We expect non-residential construction activity across Canada to moderate slightly as a number of significant projects begin winding down,” says Ferreira, adding that “activity should remain well above pre-pandemic levels and is expected to remain so throughout the decade.”

Inflationary worries and availability of labour appear to be leading causes of stress for the sector.

“It’s no secret that inflation has caused all types of stress across the construction industry,” says Archer. “Looking specifically at light industrial construction, we have seen an air of enhanced caution in all phases of the process.” Despite the

on-sitemag.com / 31

concerns, increased interest in distribution centres and low inventories in the light industrial segment have made it a growing segment for his company; and a marked contrast to what some are experiencing in the residential sector.

“Multi-unit condominium projects were particularly hard hit as they require unit selling prices to be established before construction and lending costs can be fully understood,” explains Wieninger. “This is very problematic with the need for new housing in high demand.”

Even projects that are on solid financial ground are facing challenges, however, as the impacts of a tight labour market and rising labour costs continue.

“The availability of labour has been the greatest strain on the industry, causing contractors and their work crews to become creative with scheduling in order to overcome supply chain issues,” says Ferreira.

“These impending economic trends underscore how badly the construction industry needs to find ways to reduce waste and build with greater efficiency,” explains Kris Lengieza, vice-president of global partnerships and alliances at Procore Technologies, Inc.

These new ways include the move to

automate certain tasks, such as the filing of reports, procurement and scheduling.

“The pandemic really brought to light the need for general contractors who weren’t using construction management software to start using it as soon as possible,” says Lengieza.

“Significant interest and investment by technology companies entering the space over the last five years has created tremendous opportunity,” says Wieninger. “Specifically, automating workflows and being able to digitize a jobsite give those contractors investing in the space both an efficiency and quality advantage because they can leverage information in real time both for themselves and sub-trades.”

With interest in technology solutions gaining speed, not every company will be as prepared to embrace the new tools as some of the larger firms, however.

“Most of Canada’s construction industry is made up of small and even micro-businesses that don’t have nearly the same volume of financial and human resources. Change will be slower to come among these companies,” suggests Ferreira.

But the entry points to the use of construction apps and software are becom-

ing more and more simplified, which may help companies that don’t have dedicated digital construction people or teams.

“Technology is now at a tipping point of fundamentally changing the efficiency in which construction is performed. Not adopting new technologies in such a world effectively means choosing to be left behind, and in the not-so-long-term that would mean risking the business,” advises Aviv Leibovici, CPO and co-founder of Buildots.

In addition to simplifying the sharing of documents and reducing duplication in the flow of key reports, technology is fast becoming a way to sort through the massive amounts of data generated on many of today’s build sites.

“Artificial intelligence in general, and generative AI more specifically, will likely transform our ability to analyze and utilize construction site-generated data,” explains Wieninger.

“Most construction companies have mountains of data that is not being analyzed in any way. Documents, schedules, images – all can be analyzed to produce critical business insights,” adds Leibovici. “AI is the key to all this because it is too much data to digest manually.”

32 / JUNE 2023
PHOTO COURTESY OF CRCE CONSTRUCTION

Behind every great project, are great people.

At EllisDon, we work with the best of the best. It’s about working with values-based people, letting them embrace their unique talents, and providing them with opportunities to grow and take on exciting challenges.

“AI has the potential to sift through reams of unstructured data and decode the dark and unconnected data that exists in much of the construction industry,” says Wieninger. “The journey ahead is exciting.”

“As we are seeing more interest in AI, drones and 3D modelling, I anticipate a greater emphasis on the use of data for predictive analytics – taking advantage of the vast amount of data produced during a project to gain insights,” says Lengieza. “We’re going to see more data-driven decision-making in the future, and that will happen in every phase of a construction project.”

The rising interest in, and use of, technology may also help the industry attract the next wave of workers.

“Since all industries are experiencing this demographic challenge at the same time, the competition for younger workers will be intense,” says Ferreira. “Construction

companies will need to distinguish themselves from not only their competitors, but also from companies in other industries.”

Procore and other industry suppliers are working with schools across Canada to assist with the rapid adoption of technology, and to attract students into construction-related post-secondary programs of study.

“Procore donates our products and our training to construction programs at 11 Canadian schools, including George Brown College, Centennial College, Humber College, Southern Alberta Institute of Technology (SAIT),” says Lengieza, adding that the company has plans to expand their offer to construction management programs at other Canadian colleges and universities as well.

While technology will help, the key to climbing higher, says Wieninger, is its people. “Focus on people as the company’s most valuable asset. There are elements

within a company that will always change, but people are the foundation and heart of an organization,” he explains.

It’s a belief echoed by Orion Construction’s Archer. “We know we are only as good as the people we surround ourselves with,” he says. “Supporting everyone’s growth goals and education to be the best in their fields has been our primary focus.”

That’s a formula that will help drive new growth as the current year unfolds and the industry navigates ongoing adjustments in the supply chain, labour pool, financials, and more.

“Faced with unprecedented challenges over the last five years, our industry continues to show remarkable resilience. Globally, construction is leading the way to economic recovery,” says Lengieza. “By 2030, global construction is expected to grow by 42 per cent. There’s no doubt, we’re in a time of great opportunity.”

34 / JUNE 2023 OnSite_Buildforce_June23.indd 1 2023-05-17 2:04 PM Your Construction Solutions Partner grahambuilds.com OnSite_Graham_June23.indd 1 2023-05-31 10:47 AM
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THE FOUNDATION OF SUCCESS

Top 5 Under 50 contractor

Afamily- and employee-owned construction company with diverse service offerings within Western Canada, Fillmore Construction Management Inc. attributes its growth over the past 30 years to a family-style, client-centric focus that its employees deliver from all areas of the company.

“Our family-focused way of doing business is centred around our people, giving back to the community, and engaging with repeat long-term clients,” explains Chris Fillmore, the company’s president. “The company is purposefully structured around these concepts with a focus on delivering value instead of a focus on volume growth.”

The team has been prominent in the MS Bike Tour for 15 years, raising well over $100,000 annually for this great cause and raising more than $1.5 million to-date for the MS Society of Canada.

PUTTING THE CLIENT FIRST

Although revenue totals are secondary to client satisfaction, the company’s abilities to deliver value and to be a trustworthy building partner to its clients are driving Fillmore Construction to new heights, including to the top of On-Site’s 2023 list of Top Contractors with under 50 employees. The company delivers projects in

Top, from left: Gary Maidens, corporate health, safety and environment manager; Jeff Fillmore, vice-president; Chris Fillmore, president; Cindy Martel, vice-president, finance; Brian Barbeau, vice-president, field operations; Ainsley Fitzgerald, HR business partner; Brian Drew, vice-president, project operations; and James Behnke, business and project development manager.

Edmonton, Calgary, the Okanagan Valley, and pretty much anywhere that its customers request its experience and expertise, including projects throughout B.C., the Prairies and into Canada’s North.

“Our growth is very organic,” says Chris. “Our clients take us all over Western Canada.”

He adds that some of its best advertisements are signs on jobsites that have

36 / JUNE 2023
Fillmore Construction Management Inc. is building enduring success by prioritizing collaborative relationships, fostering customer loyalty, and delivering exceptional service.
PHOTOS COURTESY OF FILLMORE CONSTRUCTION MANAGEMENT INC.
Right: Aspen Heights Retirement Residence.

gone well and finished on time, explaining that successful projects tend to lead to recommendations from clients and suppliers, as well as interest from new potential customers.

Fillmore Construction, which operates primarily as a general contractor delivering complex projects in the commercial, light-industrial, multi-family and mixed-use segments, got its start in Edmonton in 1991 when Brent Fillmore, at the time already a veteran of the construction industry, decided to start a business that would leverage relationships and a high degree of service to forge its success in the construction sector.

“Brent knew the key to success was based on relationships and bringing repeated value to them,” explains Chris. “Brent was dedicated to the idea that you didn’t need to have hundreds of clients and instead would focus on ensuring a smaller pool of clients was given the best service possible.”

Those values have been carried forward through the leadership of the company’s current president, who joined in 1999 as a student, moving up from project coordinator through project manager, and then vice-president before being promoted to president in 2016. Since becoming president, Chris has grown the company patiently but continually from $100 million to $189 million in seven years.

“This growth is on the back of our amazing long-term clients as well as a short list of exceptional new clients,” he says.

A COMPANY OF OWNERS

In 2019, the company opened itself up to allow employee ownership, a move that he says has helped drive engagement and retention of its employees, who are also now owners in the firm. Having a high level of employee engagement makes a huge difference when navigating sizable projects for several major national retailers, as well as more regional and local clients who know they can count on Fillmore to provide a collaborative and engaged approach to their projects.

Fillmore teams can currently be found on such sites as Ever Square, a $42 million

commercial development in Edmonton, the 74,000-square-foot GoodLeaf indoor vertical farming facility in Calgary, and a $22 million Mercedes-Benz Dealership in Kelowna, B.C.

“The Ever Square commercial development is basically ‘Broadway’ in Edmonton, between busy Gateway Boulevard and Calgary Trail,” says Chris. “Everybody in the city sees it as it’s one of the only tower cranes in the city right now. That’s also where our new office is going to be located; on the 4th floor of the main office tower.”

EFFICIENT, STRATEGIC PERFORMANC

Doing almost $190 million in revenue with a team of just under 50 requires some strategic efficiency, which is fostered by the Fillmore desire to be a consultive partner in a project.

“We utilize Lean construction practices and approaches like those in IPD arrangements without the heavy resource allocation, cumbersomeness and financial costs implicated with those processes, passing on these savings and increased value to our clients,” he states.

As projects are planned, the company is also strategic with who it puts in charge on each site, aiming to align a project’s needs with project managers experienced in that market or type of structure.

“We match project complexities, experience, personalities and other metrics to ensure we have the right team for every project” he says. “We then support these skilled assets with the resources and technical backing to succeed. Having this support from the top down locally and throughout all project phases provides the support needed to have successful outcomes.”

Having an engineer at the helm, and experienced personnel available at all levels of the company, also helps with the company’s aim to be the one their clients turn to again and again.

“We are collaborative problem solvers. We have eyes on the design, execution planning, sequencing, scheduling, execution, and commissioning by our experienced team,” says Chris, adding that honest, transparent conversations about any

TOP FIVE UNDER 50 EMPLOYEES 1

FILLMORE CONSTRUCTION MANAGEMENT INC

H eadquarters: Edmonton, Alta. 2022 Revenue: $189,000,000

www.fillmoreconstruction.com

2 3 4 5

ORION CONSTRUCTION

H eadquarters: Langley, B.C. 2022 Revenue: $112,406,430

www.orionconstruction.ca

CLOBRACON CONSTRUCTION INC.

Headquarters: St-Laurent, Que. 2022 Revenue: $88,000,000

www.clobracon.com

ROSATI CONSTRUCTION

Headquarters: Windsor, Ont. 2022 Revenue: $61,106,051

www.rosatigroup.com

O.N.SITE CONSTRUCTION INC.

Headquarters: Oakville, Ont. 2022 Revenue: $45,474,380

www.onsiteconstruction.ca

wrinkles with a plan is critical.

“It is important in construction to ensure the client knows what to expect right from the beginning, or when things come up, so effective solutions can be arrived at. We work with all parties collaboratively on solutions, which build relationships and drive success,” he says. “Our reputation is based on fair, honest and transparent dealings with all members of the project. We focus on bringing significant value to clients, so they want to come back to us for their next projects.”

on-sitemag.com / 37

LISTINGS

Acciona Infrastructure Canada Inc.

5700 Explorer Drive

Mississauga, ON

L4W 0C6

T: 905-510-6026

www.acciona.ca

B,H

Aecon Group Inc.

20 Carlson Court, Suite 105

Toronto, ON

M9W 7K6

T: 416-297 2600

www.aecon.com

B,J,K,T,W,Z

Associated Equities Ltd

1257-5328 Calgary Trail S

Edmonton, AB

T6H 5J4

T: 780-446-8685

Avondale Construction Ltd

49 Hobsons Lake Drive

Halifax, Nova Scotia

B3S 0E4

T: 902-478-6800

www.avondaleconstruction.com

C,H,M,O,V B

Barnard Constructors of Canada, LP

546 Sovereign Rd - Unit A

London, ON

N5V 4K5

T: 647-919-5094

www.barnard-inc.com

B,E,H,J,K,R,S,T

Baycrest Project & Construction Management

23 Railside Rd, Units 5 & 6

Toronto, ON

M3A 1B2

T: 416-444-0200

www.baycrestgc.com

C,M,O

Bird Construction Inc.

4820 Richard Rd SW #600

Calgary, AB

T3E 6L1

T: 403-685-7777

www.bird.ca

B,C,E,F,H,J,K,M,N,O,R,S,T,V,Y,Z

Bockstael Construction Ltd

200-100 Paquin Rd

Winnipeg, MB

R2J 3V4

T: 204-233-7135

www.bockstael.com

C,E,F,H,J,M,N,O,V

Broccolini Construction Inc

16766 Transcanada, Suite 500 Montreal, QC

H9H 4M7

T: 514-737-0076

www.broccolini.com

C,E,F,H,N,V

Buttcon

300-6240 Highway 7 Woodbridge, ON

L4H 4G3

T: 905-907-4242

www.buttcon.com

C,H,M,N,O,V

Camp Forming Ltd. 71 Creditstone Rd Concord, ON

L4K 1N3

T: 416-745-8680

www.campforming.com

A,C,E

Canadian Turner Construction Company Ltd. 510 Seymour St Vancouver, BC

V6B 3J5

T: 604-626-3865

www.turnerconstruction.com

A,B,C,D,E,F,G,H,J,K,M,N,O,Q,R,S,T,U,V,W,X,Y,Z

CastleRidge Concrete Inc

2985 County Rd 25 Castleton, ON

K0K 1M0

T: 905-344-7711

CGI Constructors 500 Watline Ave

Mississauga, ON

L4Z 2Z1

T: 905-564-6565

www.cgigc.com

C,O

Chandos Construction 9604 20 Ave NW Edmonton, AB

T6N 1G1

T: 780-910-5561

www.chandos.com

B,C,E,H,M,O,V,Z

Chase Contracting Ltd

5759 186A St Surrey, BC

V3S 7N2

T: 778-919-2499

www.chasecontractingltd.com

C,E,M,N,V

The following letter codes are used to indicate areas of activity for the contractors in the listings on these pages. A

Clark Builders 800, 5555 Calgary Trail NW

Edmonton, AB

T6H 5P9

T: 780-278-6737

www.clarkbuilders.com

C,E,G,H,M,N,O,R,S,V,Z

Clobracon Construction Inc. 2535 Halpern, Suite 1

Saint-Laurent, QC

H4S 1N9

T: 514-731-0035

www.clobracon.com

C,E,M,N,O,V,Y

Custom Blacktop Co.

3010 Norland Ave.

Burnaby, BC

V5B 3A6

T: 604-291-7545

www.customblacktop.com

A,E,W

Dawson Wallace Construction Ltd.

4611 Eleniak Rd

Edmonton, AB

T6B 2N1

T: 780-466-8700

www.dawsonwallace.com

F,M,N

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A ggregates
Bridges
Commercial Buildings
Communication Engineering
Concrete
Contract Management
Demolition
De sign/Build
Electric Power/Utilities
Environmental Remediation
General Contracting N Industrial Buldings O Institutional Buildings Q Marine-Related R Mining-Related S Oil and Gas-Related T Other Transportation Construction U Re sidential Houses V Re sidential Multi-Unit W Roadbuilding X Sewer Y Structural Steel Z Waterworks
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Delnor Construction Ltd.

3609-74 Ave

Edmonton, AB

T6B 2T7

T: 780-469-1304

www.delnor.ca

C,H,M,O,V

DiCocco Contractors

550 McGregor Side Rd

Sarnia, ON

N0N 1H0

T: 519-344-8446

www.dicocco.ca

Dineen Construction (2017) Corporation

70 Disco Rd

Toronto, ON

M9W 1L9

T: 416-675-7676

www.dineen.com

Fillmore Construction Management Inc

9114 - 34A Ave Edmonton, AB

T6E 5P4

T: 780-235-6015 www.fillmoreconstruction.com

C,F,H,M,O,V

Flatiron

#210 - 4020 Viking Way Vancouver, BC

V5Z 1S1

T: 778-888-6464

www.flatironcorp.com

FLINT Corp.

205-5th Ave SW

Bow Valley Square Tower 2, Suite 3500

Calgary, AB

T2P 2V7

T: 403-669-8241

Graham Construction

10840 27 St SE

Calgary, AB

T2Z 3R6

T: 403-570-5106

www.grahambuilds.com

A,B,H,J,N,O,R,S,T,V,W,Z

Grascan Construction Ltd

61 Steinway Blvd

Etobicoke, ON

M9W 6H6

T: 416-644-8858

www.grascan.com

B,H,W

EBC inc.

1095, rue Valets

L’Ancienne-Lorette, QC

G2E 4M7

T: 418-872-0600

www.ebcinc.com

B,C,E,F,G,H,J,K,M,N,O,Q,R,S,T,U,V,W,X,Y,Z

EBS Geostructural Inc.

320 Woolwich St

Breslau, ON

N0B 1M0

T: 519-648-3613

www.ebsgeo.com

Eiffage in Canada

3455 Landmark Rd

Burlington, ON

L7M 1T4

T: 905-637-0004

www.eiffage.ca

B,W

Elite Analytics

3436 Ash Row Cres

Mississauga, ON

L5L 1K4

T: 6475813712

www.eliteanalytics.co

EllisDon Corporation

1004 Middlegate Rd, Suite 1000

Mississauga, ON

L4Y 1M4

T: 905-896-8900

www.ellisdon.com

A,B,C,D,E,F,G,H,J,K,M,N,O,Q,R,S,T,U,V,W,X,Y,Z

ETRO Construction

4727 Hastings St

Burnaby, BC

V5C 2K8

T: 604-492-0920

www.etroconstruction.com

C,M,O,V

Infracon Construction Group

Unit L, 954 Laval Cres

Kamloops, BC

V2C 5P5

T: 250-374-4551

www.infracon.com

www.flintcorp.com

E,F,G,H,J,K,M,N,R,S,Y

Fluor Driver

101 - 1003 Ellwood Rd SW Edmonton, AB

T6X 0B3

T: 877-314-8435

www.fdindustrial.com

F,J,M,N,R,S

Flynn Group of Companies

6435 Northwest Drive

Mississauga, ON

L4V 1K2

T: 905-671-3971 flynncompanies.com

Fortis Construction Group Inc.

416 Advanced Blvd

Tecumseh, ON

N8N 5G8

T: 519-419-7828

www.fortisgroup.ca

C,F,M,O,V

FWS

275 Commerce Dr.

Winnipeg, MB

R3P 1B3

T: 204-487-2500

www.fwsgroup.com

A,H,M,R,S,Y

Gillam Group

36 Northline Rd, Unit 3

Toronto, ON

M4B 3E2

T: 416-486-6776

www.gillamgroup.com

C,H,M,N,O,V

A,B,C,J,K,N,O,R,S,T,W,X,Z

Ira McDonald Construction Ltd.

67 Frid St, Unit 16

Hamilton, ON

L8P 4M3

T: 905-297-4653

www.iramcdonald.com

C,H,M,N,O,V

JR Certus Construction Co. Ltd.

81 Zenway Blvd., Unit #3 Second Floor

Vaughan, ON

L4H 0S5

T: 647-494-0150

www.jrcertus.com

C,F,M,O,V

Keller North America

254 Main St N, Unit 1

Acton, ON

L7J 1W9

T: 647-417-0115

www.keller-na.com

B,C,N,O,R,S,V

Kiewit Canada Group Inc.

200-10333 Southport Rd, SW

Calgary, AB

T2W 3X6

T: 403-693-8701

www.kiewit.com

A,B,D,E,H,J,K,M,N,Q,R,S,T,W,X,Y,Z

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LISTINGS

Kinetic Construction Ltd.

301 - 740 Hillside Ave

Victoria, BC

V8T 1Z4

T: 250-381-6331

www.kineticconstruction.com

C,H,M,V

Krawford Construction Company Inc.

8055 Argyll Rd NW

Edmonton, AB

T6C 4A9

T: 780-436-4381

www.krawford.com

M.D. Steele Construction Ltd.

Unit 26 - 1051 Kapelus Drive

West St. Paul, MB

R2R 2S8

T: 204-488-7070

www.mdsteele.mb.ca

Magil Construction

2000 Argentia Rd Plaza 2, Suite 101 Mississauga, ON

L5N 1V8

T: 416-779-9670

www.magil.com

C,E,H,M,N,O,V

Maple Reinders

2660 Argentia Rd

Naikoon Contracting Ltd

350 Esplanade E, 302

North Vancouver, BC

V7H 1A4

T: 778-340-1566

www.naikoon.ca

NorLand Limited

8648 Commerce Court

Burnaby, BC

V5A 4N6

T: 604-205-7600

www.norlandlimited.com

Lanca Contracting Limited

35 Bury Court

Brantford, ON

N3A 0A9

T: 519-756-1880

www.lanca.com

Ledcor Group of Companies

1500 - 1055 West Hastings St

Vancouver, BC

V6E 2E9

T: 604-681-7500

www.ledcor.com

B,C,E,F,G,H,J,K,M,N,O,Q,R,S,T,V,W,Y

Leeswood Construction

7200 West Credit Ave

Mississauga, ON

L5N 5N1

T: 416-309-4482

www.leeswood.ca

A,B,C,D,E,F,G,H,J,K,M,N,O,Q,R,S,T,U,V,W,X,Y,Z

Leroy Construction

100 Development Drive

Blind River, ON

P0R 1B0

T: 705-356-1015

www.leroyconstruction.ca

A,B,W,X,Z

Luxton Construction Inc

Unit 103A, 8275 92 St

Delta, BC

V4G 0A4

T: 604-676-0065

www.luxtonconstruction.ca

Mississauga, ON

L5N 5V4

T: 905-467-7589

www.maple.ca

C,E,F,H,J,M,N,O,V,X,Z

Marco Group Limited

78 O’Leary Ave St. John’s, NL

A1B 4B8

T: 709-754-3737

www.marcogroup.ca

C,F,H,M,N,O,V

Matheson Constructors

245 Industrial Parkway N

Aurora, ON

L4G 4C4

T: 905-669-7999

www.mathesonconstructors.com

C,E,F,H,M,N,O,Q,V

Mclean Taylor Construction Ltd.

100 Water St S

St Marys, ON

N4X 1B1

T: 519-284-2580

www.mcleantaylor.com

Metric Contracting Services Corporation

34 Bramtree Court

Brampton, ON

L6S 5Z7

T: 416-553-4772

www.metricgroup.ca

H,W,X,Z

Michels Canada Co.

1102 16th Ave

Nisku, AB

T9E 0A9

M Builds

955 Cobalt Cr.

Thunder Bay, ON

P7B 5Z4

T: 807-473-4055

www.mbuilds.ca

C,E,F,M,O,V

North American Construction Group

27287 - 100 Ave

Acheson, AB

T7X 6H8

T: 780-969-5543

www.nacg.ca

North Construction

378 ESPLANADE E

North Vancouver, BC

V7L 1A4

T: 604-904-2300

www.north-construction.com

A,F,J,K,M,Q,T,V,W,X,Z

O.N.Site Construction Inc.

2861 Sherwood Heights Drive, Unit 40 Oakville, ON

L6J 7K1

T: 416-689-8851

www.onsiteconstruction.ca

C,F,H,M,N

Olympic Construction Limited 190 Majors Path St. John’s, NL

A1A 5A1

T: 709-576-4335

www.olympic-construction.nf.ca

C,E,F,H,M,O

On Side Restoration Services Ltd.

3157 Grandview Highway

Vancouver, BC

V5M 2E9

T: 403-829-7949

www.onside.ca

C,G,M,N,O,U,V

T: 780-868-0795

www.michelscanada.com

H,J,S,X,Z

Moncrief Construction Limited

504 Ninth St N

Kenora, ON

P9N 2S8

T: 807-468-8484

www.moncrief.ca

A,B,E,J,M,W,X,Z

Orion Construction

#105 - 19923 80A Ave

Langley, BC

V2Y 0E2

T: 778-821-1208

www.orionconstruction.ca

C,E,G,H,K,M,N,W,X,Y

40 / JUNE 2023
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Our Services

Maintenance & Turnarounds

Facility & Pipeline Construction

Fabrication, Machining & 3-D Scanning

Module/Skid Assembly

Environmental & Decommissioning Services

Heavy Equipment Operators/Technicians

Pipeline Integrity Digs

Asset Integrity Products

Specialty & Exchanger Services

PCL Construction

9915 56 Ave. NW

Edmonton, AB

T6E 5L7

T: 780-733-5107

www.pcl.com

B,C,D,F,H,J,K,M,N,O,Q,R,S,T,V,W,X,Z

Percon Construction Inc

20 Airview Rd

Toronto, ON

M9W 4P2

T: 416-948-8170

www.perconconstruction.com

M

Pomerleau

220-343 Preston St

Ottawa, ON

K1S 1N4

T: 519-318-5678

www.pomerleau.ca

B,C,J,N,O,Q,S,T,V,W,X

Priestly Demolition

3200 Lloydtown Aurora Rd

King, ON

L7B 0G2

T: 289-552-3228

www.priestly.ca

A,B,C,E,G,K,M,Q

Principle Projects Ltd

470040 Range Rd 243

Wetaskiwin, AB

T9A 1W8

T: 587-987-4464

www.principleprojectsltd.ca

E,G,M,N,S

QM Environmental

5035 S Service Rd #200

Burlington, ON

L7L 6M9

T: 416-253-6000

www.qmenv.com

G,K,Q,R,S

Reliance Construction of Canada Ltée.

3285 Jean-Baptiste Deschamps

Lachine, QC

H4G 1P6

T: 514-220-1935

www.relianceconstruction.com

C,F,H,M,N,V

Restoration Aid Inc.

749 Warden Ave

Toronto, ON

M1L 4A8

T: 647-567-8933

www.restorationaid.ca

V

Rosati Construction

6555 Malden Rd

Windsor, ON

N9H 1T5

T: 519-734-6511

www.rosatigroup.com

C,E,F,H,M,N,O,V,X,Y

Royalcrest Paving Ltd.

864 Tapsoctt Rd Suite 200 Toronto, ON

M1X 1C3

T: 416-335-9336

www.royalcrest.ca

Royalty General Construction 386 Bering Ave Toronto, ON

M8Z 3A9

T: 416-558-4438

www.royaltygeneral.com

C,F,M,N,Y

Self Storage Contracting Inc.

200 Brock St

Barrie, ON

L4N 2M4

T: 905-526-0202

www.selfstoragecontracting.com

E,H,M,N

Stormys Maintenance and construction

177 Raymel Rd

Grand Barachois, NB

E4P 7M7

T: 416-816-0771

A,C,E,M,N

Strike Group 1300, 505 3rd St SW

Calgary, AB

T2P 3E6

T: 403-775-1031

www.strikegroup.ca

E,G,J,K,M,N,R,S,Y

Timberline Custom Homes 5584 Hwy 28

Woodview, ON

K0L 3E0

T: 705-741-6731

www.timberlinecustomhomes.ca

A,C,G,H,M,U,W

TriAxis Construction

3415 American Drive

Mississauga, ON

L4V 1T4

T: 416-896-3832

www.triaxis.ca

Urban One Builders 50 W 7th Ave

Vancouver, BC

V5Y 1L6

T: 604-398-2832

www.urbanonebuilders.com

E,F,H,M,O,V

Vixman Construction LTD 4919 7th Line

Rockwood, ON

N0B 2K0

T: 519-856-2000

www.vixman.com

C,N,O,V

W.S. Morgan Construction Limited 19 Bowes St Parry Sound, ON

P2A 2K7

T: 705-746-9686

www.wsmorgan.com

A,B,C,D,E,F,G,H,J,K,M,N,O,Q,R,S,T,U,V,W,X,Y,Z

Wales McLelland Construction 6211 Fraserwood Place

Richmond, BC

V6W 1J2

T: 604-638-1212

www.walesmcLelland.com

C,E,F,H,M,N

Westcor Construction Ltd. 2420 39th Ave NE

Calgary, AB

Taggart Group of Companies

3187 Albion Rd

Ottawa, ON

K1V 8Y3

T: 613-521-3000

www.taggartgroup.ca

C,U,V,X,Z

T2E 6X1

T: 587-287-0240

www.westcor.net

F,H,O,V

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*E&OE, some conditions apply. See website for details. NEED APPRENTICES? Up to $20,000* in help is available right now! Eligible small and medium-sized businesses can apply for support from the Canadian Apprenticeship Service. In addition to the grant, build your future workforce with: • free access to employer-apprentice matching services; • free access to mentorship programs; and • free access to diversity and inclusion training. Apply for your grant at ApprenticeSearch.com/CAS

COOLING

ON THE

CUTTING EDGE

Turning to water from the bottom of Lake Ontario makes The Taylor a cool new build in Toronto’s downtown.

Looking at The Taylor, Tricon Residential’s 37-storey multi-use purpose-built rental building in downtown Toronto, you’d never know it was different from others of its type — unless you had a sky-high vantage point to check out its mechanical penthouse, that is.

The penthouse is quite a bit smaller than one would expect for a building of its size, housing only some pumps and other air handling equipment, but missing the chiller that would normally be used to provide cool air on hot summer days and nights. That’s because The Taylor is cooled not through normal air conditioning but through a revolutionary system from Enwave that uses cold water from nearby Lake Ontario.

As industry efforts across the world aim to bring new buildings closer to carbon neutrality, The Taylor and numerous other buildings in Toronto’s downtown have tapped into the use of lake water and a series of heat exchangers for cooling its residents.

The innovative system involves district-energy operator Enwave sharing infrastructure with the City of Toronto’s water utility, providing comfort to residents while also cutting cooling-related electricity use by as much as 80 per cent — performance that will help the city and its Climate Action Strategy to reduce greenhouse gas emissions.

Like all Tricon’s occupied Canadian multi-family buildings, The Taylor is built to LEED Gold standards, explains Tricon’s head of development, John English.

“Besides this being a purpose-built multi-use rental building, with ground-level stores, upper offices and rental suites above, this project stands out in its emphasis on durability, quality and sustainability,” he explains. “The Enwave system is a big part of that. It has been functioning since October 2022 and the commissioning has gone well.”

THE BIG PICTURE

Enwave calls its system Deep Lake Water Cooling, or DLWC for short. It’s the largest system of its kind, leverage economies of

44 / JUNE 2023
SUSTAINABILITY
PHOTOS COURTESY OF TRICON RESIDENTIAL
The Taylor, Tricon Residential’s 37-storey multi-use purpose-built rental building in downtown Toronto.

scale with its connected infrastructure. First completed in 2004, the original DLWC system worked so well that it has been expanded in the years since and currently cools more than 100 downtown buildings, including hospitals, data centres, educational campuses, hotels, a brewery, and government, commercial and residential buildings in Toronto’s core. Notable users include City Hall and Scotiabank Arena, home of the city’s NHL and NBA franchises.

Enwave owns and operates the DLWC system but shares infrastructure with the city’s water utility under an energy transfer agreement. As cool water circulates to the connected buildings by way of a series of pipes and heat exchangers, heat from the buildings recirculates back to the John Street Pumping Station where the thermal energy is transferred to the treated potable water via heat exchangers that keep the two streams of water separated. The increase in temperature of the drinking water is marginal, while the impact on the electricity use by the buildings is significant.

Moreover, treated water is also saved in the process, since traditional chillerbased HVAC systems would use significant amounts of evaporated water to expel heat, something that can be considerably inefficient on humid days. By using its DLWC system, Enwave estimates that the Toronto system saves roughly 220 million gallons of water each year; the equivalent of 350 Olympic-sized swimming pools.

COOLING THE TAYLOR

The process for The Taylor begins with cold water being drawn from intake pipes in Lake Ontario. The pipes are about five kilometres from shore at a depth of roughly 83 metres. Using relatively little energy, the water travels to the Island Filtration Plant operated by Toronto Water where it is treated to meet drinking water standards.

The water is then conveyed to the John Street pumping station and into the DLWC system, which operates via a series of water loops. One loop moves the lake water, another moves water within the downtown area, and loops in each building interact with the system. Thermal energy is

transferred where the loops meet, via heat exchangers, at each customer or building site, as well as where the lake water pipes meet the city pipes.

In the heat exchange system in the basement of The Taylor, water returning from the building’s cooling system transfers heat to cold lake water in other loops, and the cool air is circulated to all building spaces.

After the chilled water has circulated through the buildings, Enwave returns slightly heated water to the pumping station, where the cooler potable water absorbs heat energy, and the process repeats itself.

The model has been so successful in Toronto that the city plans to develop more low-carbon thermal energy networks to support and attract new development.

In 2019, Enwave announced plans for a $100 million system expansion with the federal government providing $10 million in funding from the Ministry of Environment and Climate Change’s Low Carbon Economy Challenge.

It is expected that, by 2050, 30 per cent of the city’s “floor space” will be connected to low-carbon heating and cooling systems, including Enwave’s DLWC structures.

GREEN ELSEWHERE AS WELL

The cooling system in The Taylor is not the only way that Tricon has reduced the building’s carbon footprint.

“The apartments have motion sensors to shut off lights when not in use; all the lights are LED; and there’s a master kill switch so that residents can turn off all lights when they leave their units,” says English. “The Taylor also features Enwave’s low-carbon heating system that uses heat pumps with

hot water heated by natural gas through a district heating system.”

The building uses a four-pipe fan system to provide HVAC flexibility.

“With Canada’s unpredictable spring and fall shoulder seasons, it’s critical to have separate systems because the temperature can fluctuate quite a bit,” he says.

Cost savings associated with sustainable heating and cooling systems like the ones deployed at The Taylor are significant but project-specific, says English, adding that his company is in discussions with Enwave about another project where it aims to use another Enwave district system for heating and cooling.

A DEGREE OF COMFORT

Construction management company Deltera was responsible for the physical construction of The Taylor’s, including its 37 storeys and 286 apartments, but those units were not the first that it had built to connect to the Enwave system.

“Deltera has been fortunate to have worked with Enwave in the past and completing our first project, The Element, 20 years ago, one of the first residential buildings connected to the Enwave DLWC system,” says the company’s senior vice-president of construction management, Mario Cimicata. “Now we are working on our largest project yet, consisting of six mixeduse towers at The Well, where we installed a concrete storage tank to facilitate Enwave’s initiatives to extend the DLWC capabilities west of the city core.”

Assessing the project at The Taylor, Cimicata says its success was a result of the strong continual collaboration among Tricon, Deltera, and their subtrades and suppliers, to the benefit tenants who started to move into the building last September.

“Tenants are benefiting from the owner’s decisions to incorporate innovative, efficient technologies and equipment, resulting in reduced operating expenses and a reduced carbon footprint,” he says. “Deltera is highly motivated in these areas, and continues to initiate working relationships with innovative organizations, owners, suppliers and technologies like Enwave.”

on-sitemag.com / 45
Crews working on a road widening project on Vancouver Island. The mechanical room at The Taylor houses pumps and piping, but no chiller.

GOING GREEN WITH STORMWATER MANAGEMENT

Peel Region expands performance while protecting at-risk species.

Over the past decade, municipalities across Canada have experienced pressures of population growth, aging infrastructure, degraded ecosystem health, and climate change, all while needing to foster economic growth and social equity. To meet these challenges, many are turning to green infrastructure.

Between 2014 and 2016, the Region of Peel conducted performance monitoring of its Bovaird stormwater management facility in Brampton, Ont., determining that a retrofit was needed to address a reduction in performance specific to drawdown and water quality.

Through the use of sustainable stormwater design practices, the region was able to complete the project within the urban setting footprint while still meeting key project objectives. Following the completion of the project, monitoring indicated an average peak flow reduction of 98 per cent and volume reduction of 86 per cent from the facility inlet to the outlet. A net cooling

effect was also observed, with an average temperature reduction of 2.6°C from the facility inlet to outlet.

Although stormwater originates from precipitation in the form of rainfall, snow, and hail, it ultimately collects on hard surfaces and eventually makes its way into streams, rivers and lakes.

It will take one of two routes as it travels through stormwater management systems, traditionally comprised of grey infrastructure features such as catch basins, maintenance holes, conveyance channels, underground storm sewers, and stormwater management ponds before discharging to the natural environment through an outfall. Otherwise, stormwater discharges directly into surrounding waterbodies via surface runoff.

COLLECTING AS IT GOES

As it moves along impervious surfaces, such

as streets, sidewalks, roofs, and driveways, stormwater picks up almost everything in its path. This can include dirt, garbage and other pollutants, such as oil and grease, fertilizer, and pesticides. There can also be a change in temperature as it flows.

Although stormwater management ponds, and specifically wet ponds, are designed to trap pollutants and provide temporary storage, they are also known to have a warming effect on stormwater due to their large permanent pool surface areas. The downside to this is that the warm water eventually makes its way into a downstream receiver, which may be a naturally cool or cold-water habitat for aquatic communities. Cold and cool-water species, such as Brook Trout (Salvelinus fontinalis) and Redside Dace (Clinostomus elongatus), can be vulnerable to warmer water temperatures.

To mitigate the impact of stormwater runoff, stormwater system designers usually turn to known best management practices, such as bottom-draw outlets in stormwater management ponds, cooling trenches, controlled outlets that release water at night versus during the heat of the day, or landscaping to provide shading of a wet pond or within the upstream catchment area.

PROTECTING AT-RISK SPECIES

The Bovaird stormwater management facility was originally constructed to manage an upstream drainage area of 3.74 hectares from the surrounding Bovaird Drive rightof-way. The downstream receiver, however, is Fletcher’s Creek, a known habitat for Redside Dace, which is a federally and provincially identified species at risk that prefers cool streams with good water quality.

46 / JUNE 2023
INFRASTRUCTURE
PHOTOS: COURTESY OF GHD Before (above) and after (left) photos of the Bovaird stormwater management facility in Brampton, Ont.

Monitoring indicated that a facility retrofit was necessary. Engineering firm GHD evaluated retrofit options based on objectives that included meeting specified flood control parameters, providing enhanced water quality with at least 80 per cent removal of total suspended solids, and providing thermal mitigation to protect the Redside Dace in Fletcher’s Creek.

The retrofit incorporates multiple design features using a treatment train approach for the stormwater before entering the facility, which now operates as a dry, infiltration facility as opposed to maintaining a wet facility design. Pre-treatment features include an Oil Grit Separator (OGS) followed by a filter unit, both of which were selected to improve the longevity of the dry pond infiltration system. The system is predicted to have a conservative lifespan of approximately 25 years.

A HYBRID APPROACH

The main basin now consists of a hybrid infiltration system, which includes two stages of treatment at the surface. The first

is a hardwood mulched area located at the inlet that acts to slow the effluent down as it enters the treatment area while also promoting the further settling of sediments. The mulched area is then underlined with a layer of biofilter media — a second stage of treatment to further promote infiltration and settling of sediments.

A berm was also incorporated across the infiltration basin as a means of flow dispersion, which allows for water to accumulate within the area of the inlet where it develops hydraulic head to force the water through the biofilter media layer.

If the water within the inlet area rises above the berm, the stormwater overflows into the larger bioretention area. Below the mulched and biofilter areas is an infiltration basin that consists of a clear stone layer wrapped in a geotextile. The clear stone layer provides approximately 700 cubic metres of stormwater storage. Once stormwater makes its way through the clear stone layer, it enters the surrounding native soils to infiltrate as it naturally would. Any water that does not infiltrate is collected

through perforated pipes installed within the stone layer, which acts as a subdrain that discharges the water to the downstream watercourse via an outlet control manhole. An overflow outlet was also installed along the perimeter of the facility should a need arise from larger storm events.

The storage capacity provided within the infiltration basin exceeds the required volume by five times. This was intentionally done to ensure all storms are forced through the surface filter media and then into the infiltration basin, where all incoming flows encounter the clear stone layer.

Based on the performance of the retrofit, the system received an Ontario Public Works Association (OPWA) Project of the Year Award.

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Sarah Andrew is an associate and senior water resources engineer for the Ontario Integrated Water Management team at GHD. Samantha Paquette is a project manager for the Infrastructure Programming and Studies team at the Region of Peel.

Underground construction claims Accounting for the unknown.

On construction projects, contractors commonly encounter site conditions that are different from what they expected. What should contractors and owners bear in mind when this situation occurs? How is this situation addressed in contract documents, and which party assumes the risk?

With underground works, there is a risk for owners and contractors that actual conditions may vary from what is anticipated. Sometimes a contractor’s means and methods need to be modified or completely changed. This may increase the cost and duration of the work. When this situation occurs, it may result in costly delays.

Construction contracts may contain provisions for dealing with unknown site conditions. For example, the 2020 CCDC 2 standard form of contract identifies two types of events arising from concealed or unknown conditions.

The first is subsurface or concealed physical conditions that existed before the work commenced that differ materially from those indicated in the contract documents. The second type is where non-weather-related physical conditions differ materially from those ordinarily found to exist, and that are generally recognized as being inherent in the types of construction activities required for the project.

Concealed or unknown conditions are sometimes called Differing Site Conditions (DSC). These differ from project to project, as do the contract provisions to deal with them and the allocation of risk to each party. Allegations that DSC exist usually relate to the availability, reliability and completeness of information provided by the owner.

Construction contracts may include provisions for risk transfer stating that the owner will not pay

claims related to DSC, and/or that it is the contractor’s sole responsibility to determine site conditions. These types of provisions do not always prevent claims or legal actions.

For example, in Cranbrook (City) v. Gabriel Construction (Alberta) Ltd (2014 BCSC 2280) the contractor, Gabriel, alleged subsurface soil and other conditions constituted “concealed or unknown conditions.” The court found that the contract expressly disclaimed any responsibility for geotechnical information provided to the contractor and cited that Gabriel was responsible for its own assessment of soil conditions. When its geotechnical investigations identified the presence of cobbles, Gabriel claimed the discovery was concealed or unknown conditions, however the court did not view it to be a “concealed or unknown condition” within the meaning of the contract. It held that Gabriel willingly took on the risk.

Parties may have different views of what a DSC actually is. The more vague the contract is on this issue and the more room there is for interpretation, the more likely there could be a dispute. However, even when contract documents appear to be “crystal clear” regarding risk allocation, a dispute can still occur.

In a New Brunswick Court of Appeal Case in a contract to construct a new courthouse, the general contractor and subcon-

tractor encountered “stronger” rock than expected, requiring mechanical breaking using hydraulic rock-breakers. The trial judge concluded that there was a change in soil conditions from those reasonably assumed to exist at the time of the bid and awarded damages. The province appealed on the question of liability.

The NB Court of Appeal concluded that the Change in Soil Conditions clause was not engaged, explaining that the clause would have required either a substantial difference between the information relating to soil conditions provided and the actual conditions encountered, or a substantial difference between the respondents’ reasonable assumptions and conditions encountered.

The court concluded that a summary review by a geotechnical engineer or someone with experience in the field could have informed the GC about the meaning and impact of the soil information provided.

This case is instructive about the use of all information available, the extent on which to rely on information provided, and how assumptions need to be informed. It is vitally important for owners and contractors to think about site and the soil conditions at bid stage, and to understand their risk and potential liability.

Robert Poole is the senior managing director at FTI Consulting. Juan Cortes is a senior consultant. The views expressed are those of the author(s) and not FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals. FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.

48 / JUNE 2023
CONTRACTS
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Taking data to the next level

Thanks to the wide proliferation of construction apps, most people in the industry have experienced at least a taste of how technology can eliminate administrative steps, reduce uncertainty, and share key information. Local deployments of these apps only scratch the surface, however. The real potential will only be achieved when the technology is deployed widely across the business.

“When we look at the evolution of BIM or construction technology, it’s not just a technology, and it’s not just a process,” says Hammad Chaudhry, national director of digital project delivery, digital and data engineering, at EllisDon. “It’s a technology in a process. So essentially, it’s a way of doing business.”

The technology is ready for the task. Advanced data collection methods — cameras, drones, IoT sensors — are widely available, and virtual BIM models now support embedded content so that users can easily access it. Getting to the point where the entire business runs on digital platforms, however, will require a quantum leap.

“The question now is ‘how we get the technology properly integrated across all types of projects?’” says Chaudhry.

This transformation can’t happen in a vacuum. All stakeholders will have to share the workload of inputting data, and this effort will require changes in the traditional roles that designers, GCs, subcontractors, and owners play during the lifecycle of a project.

“Once we have a graphical model in place, we need to now focus on the data that’s embedded inside the model,” says Steve Rollo, national BIM/VDC manager at Graham Construction and Engineering. “It’s a garbage in, garbage out scenario, and time and effort needs to go into injecting that information. But that’s difficult when you’re trying to use new technologies in a project with traditional timelines and processes. Instead, we need to plan for a heavier front load of a project, which isn’t traditionally done when it comes to resourcing.”

“Every stakeholder has to be part of the process, which means additional meetings and planning,” says Daniel Doherty, manager of integrated construction Technology at PCL Construction. “And if it’s not driven by a client, how do we offset the costs of better planning on our side? Right now, we’re limited to what we can do within our contractual arrangement.”

One of the systemic barriers is that the low-bid format for awarding contracts precludes the kind of collaboration that’s required.

“Anytime there’s value engineering, or anything that happens after bringing the trades on board, we still have to step back and do all the rework,” says Doherty. “Whereas with a more cooperative contract, we can bring these experts on early and change the process around the technology, not change the technology around the process.”

Another challenge is that many contracts are still paper based.

“The biggest challenge we have right now is that our standardized processes, like our CCDC [Canadian Construction Documents Committee] contracts, are not formatted for the technology that we have,” says Doherty. “So, we change our digital information into paper because that’s what we’re contractually obligated to do. Every time we do that, we’re putting another roadblock into the consistent and effective use of technology.”

Other nations have forged ahead with digital standards, creating an environment where contractors can make the investment in digitizing their core processes.

“In terms of mandating standards, U.K., Australia, Singapore, the Netherlands, have all gone forward leaps and bounds ahead of Canada,” says Doherty. “I think the Canadian government is waiting for the private sector to just sort of make it happen. But it’s a cultural shift, so we need some incentive there.”

Doherty hopes that educating owners will help move the needle forward.

“We’re looking to educate owners on why they should be driving these types of processes,” he says, “and the value of information deliverables that they should be building into contracts as we learn how to be most efficient with the technology, as it’s evolving at breakneck speed.”

“Nobody knows fully where all this is headed,” says Chaudhry, “but in terms of the projects that we’re seeing, there’s more of an evolution for clients to want to have a structure or framework around procuring and asking for work though BIM models. There’s also a bit more of a focus on the lifecycle aspect in terms of the model that’s handed over, whether that’s for as-built documentation or for facility maintenance, or something like that. So that’s more of a tangible sign that things are evolving, and we’re seeing that across all different industries and segments.”

50 / JUNE 2023
By
Stoller
TECHNOLOGY
Jacob Stoller is principal of StollerStrategies. Send comments to editor@on-sitemag.com.
Data might be the new oil, but to realize its value, people and processes have to change.
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Managing risks of theft

Theft of tools, equipment, vehicles, or materials from a jobsite can be a very painful experience. This pain may be further exacerbated by the current supply chain issues and the impacts of inflationary pressures, since replacement may be more difficult than anticipated.

Theft in the Canadian economy may be brought on by any one of numerous factors, including growing economic hardship, the rising cost of goods and, in some cases, lack of product availability.

In the construction sector, lingering supply chain and inflationary pressures can be factors that cause theft as well, and these crimes often end up hitting victims twice as not only are they missing items they were relying on, they must now also deal with replacing missing items that could be scarce in the supply chain, or now more expensive.

There has never been a better time to go over your company’s strategies to manage construction jobsite theft, and there are several sound strategies your firm can implement.

If your company doesn’t already create project-specific theft risk assessments prior and during project delivery, you should start. Identify potential weaknesses in security, such as unsecured access points, inadequate lighting, or lack of surveillance system. Further, you also should assess where the valuable equipment is located on the jobsite and assess these specific areas of the site.

Using the output from the risk assessment, develop a clear and comprehensive site specific security plan. Ensure this plan includes the following:

Fencing and signage: The site should have strong fencing around its perimeter. Additionally, prominent signage should be displayed indicated the area is under surveillance and trespassers will be prosecuted.

Access strategy: Develop a controlled entry and exit system with secure access points. Have enough access points to ensure jobsite efficiency but don’t have too many so as to leave the site vulnerable to break-in. Consider using some of the site access technology now available in the market to vet those seeking access to the site and tied into site monitoring technology.

Adequate lighting: Ensure the entire site has sufficient lighting to allow people and security systems clear visibility of potential thieves.

Surveillance systems: Install video surveillance systems strategically across the entire site, ensuring vulnerable areas such as access points, high value areas and blind spots have digital visibility. Use high-quality cameras and advanced technology to ensure clear and quick warning to prevent and mitigate theft.

Inventory system: Ensure that a robust inventory control system is implemented on the jobsite for all tools, equipment, materials

and vehicles. Digital solutions are available to make this system user friendly and easy to monitor.

THEFT PREVENTION AND MITIGATION TRAINING

Provide regular and comprehensive site security training to all stakeholders with access to the jobsite. Ensure all site personnel are trained to recognize suspicious behaviour, how to report incidents, and know the appropriate security protocol. There are several digital training technologies in the market that can provide ideal complements to in-person training to ensure continuous diligence on the site to prevent and mitigate theft.

Ensure awareness of measures required to secure valuable tools, equipment, materials, and vehicles. These can include:

1. Locks and alarm solutions;

2. Marking and tracking solutions (GPS and RFID tracking); and

3. Secure storage.

LAW ENFORCEMENT AND SITE AUDITS

Ensure you have relationships established with local law enforcement to ensure prompt and comprehensive response to theft scenarios, and don’t forget that site inspections and audits should be executed on a regular basis to ensure best practices are being adhered to and to identify and treat any vulnerabilities.

INSURANCE REVIEW

And, finally, be sure that insurances, both project and practice policies, are sufficient for theft risk. It isn’t the only cost to replace the stolen item, but also the impact that certain stolen items could have on the job schedule.

Also ensure that any items that could impact the schedule are easy to identify. Create a recovery plan to ensure that replacement of those items is expedited, thus minimizing impact on a job’s schedule.

With construction project theft on the rise and the impact of theft having even great impacts on jobsite schedules, budgets and overall profitability, it is imperative that the construction sector develops proactive theft risk management protocols like those outlined above.

Times are tough and theft is a growing threat to the construction industry. Make sure you are putting your firm, and your construction partners, in a position to minimize the impact of this growing risk.

52 / JUNE 2023 By
RISK
David Bowcott
David Bowcott is the managing director, construction, at NFP Corp. Please send comments to
Loss of tools and materials can create unnecessary challenges on construction sites.

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Delays and cancellations

Best practices and insights in turbulent market conditions.

The Canadian construction industry has been facing a perfect storm of higher interest rates, increased costs for materials, labour shortages, supply chain issues and the potential of a post COVID-19 recession. To navigate these turbulent market conditions, parties to construction contracts must be well-versed in the legal framework governing project delays and cancellations.

CONSTRUCTION DELAYS

Delays and cost overruns on Canadian construction projects have unfortunately become the status quo. In project delay situations, a party must manage potential additional costs for site and office overhead, equipment rentals, idle labour, financing and insurance, and other potential liabilities, such as loss of revenue and profit.

A careful review and thorough understanding of the change management and dispute resolution provisions in the underlying contract is a crucial first step. Close attention must be paid to contractual notice provisions, including timelines, substantive requirements and how the notice must be served.

Canadian courts typically require strict compliance with notice provisions where the underlying provision is clear and unambiguous, and particularly where a government entity is involved. In Tower Restoration v Attorney General of Canada, the Ontario Divisional Court ruled that the contractor was barred from bringing its claim against the Government of Canada because it failed to deliver a notice to dispute a decision within the contractual timeframe.

This case followed the seminal Supreme Court of Canada decision on notice requirements in Corpex (1977) Inc. v. Canada, which stated that the primary policy reason for strict compliance with binding notice provisions in construction contracts is to provide the responding party with the appropriate information and opportunity to take corrective action before a claim is pursued.

Another best practice is for project personnel to document the delay event or circumstance through correspondence, meeting minutes, photographs or any other record to capture the relevant facts. Notice is not enough. Project claim submissions must also contain adequate particulars and contemporaneous supporting documentation, with detailed breakdowns and evidence of specific costs consequences to allow the project arbiter to render a considered decision having regard to all material facts and circumstances.

PROJECT CANCELLATIONS

In its 2023 contractor survey, the Ontario Construction Secretariat reported that 36 per cent of contractors had projects cancelled during the past year. The main reasons for cancellations typically include escalating project costs, difficulty obtaining materials, inability to secure permits, labour issues, and failure to obtain

satisfactory financing or higher interest rates.

Project cancellations often leave contractors in a bind and scrambling to find alternative work fronts to deploy personnel and equipment. This, in turn, often leads to higher costs, overstaffing and idle equipment with the unfortunate corollary being lost profit for contractors and the potential for employee layoffs.

A review of the underlying contract will determine whether a party (most often the owner) may be entitled to cancel the project, and on what terms. To this end, most contracts will contain cancellation or early termination provisions which set out the circumstances in which a party may be entitled to walk away, including the inability to proceed for a reason beyond one’s control. It is also worth noting that, absent a specific contractual right, mere economic hardship is typically not a basis for terminating a contract on the common law principle of frustration.

A party seeking to cancel a project must closely examine the applicable contractual provisions to ensure compliance with the cancellation procedure and avoid any breach or claim scenario. While the vast majority of project cancellations have a valid reason, the parties should also be reminded that the common law since the SCC’s landmark 2014 decision in Bhasin v Hrynew requires any such cancellation rights to be exercised honestly and in good faith.

More recently, the SCC stated in C.M. Callow Inc. v. Zollinger that the duty of honest performance requires that parties must not lie or otherwise knowingly mislead each other regarding issues directly linked to the execution of the contract.

The upshot of these court decisions is that a party seeking to exercise a contractual right of cancellation must do so in good faith for valid reasons. In any case, parties must keep meticulous records of all correspondence and meetings regarding the reasons invoked for cancelling the project.

While the overall outlook for Canada’s construction industry remains bullish, factors such as labour shortages and the increased costs of financing and materials create potential for project delays and cancellations. In these circumstances, parties must be aware of their contractual and legal rights and responsibilities and should seek knowledgeable legal counsel to help navigate these turbulent market conditions.

Joseph Campbell is counsel in the construction group at Borden Ladner Gervais LLP. He acknowledges the assistance of articling student Divi Dev in preparing this article. This column provides a general overview and is not intended to be exhaustive of the subject matter. Though care has been taken to ensure accuracy, this article should not be relied upon as legal advice.

54 / JUNE 2023
CONTRACTORS & THE LAW
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