The Finance, Insurance & Bonding Issue

VOLUME 10 • ISSUE 4

JULY // AUGUST 2021

THE OFFICIAL PUBLICATION OF THE G RAND VALLEY CONSTRUCTION ASSOCIATION

GVCA

EDUCATION

COURSE OUTLINE

2021 THE

FINANCE, INSURANCE & BONDING

ISSUE

In this issue, we look at the ongoing effects of the COVID-19 pandemic on price increases and material shortages, as well as the latest developments in the surety and insurance industries. Look for these stories and much more!

+ PLUS GVCA EVENTS AND EDUCATION CALENDAR

Building confidence together For over 90 years, the insurance professionals at Gallagher have partnered with our clients to help them navigate the evolving challenges of construction insurance and risk management.

Your success is our success.

Proud supporters of the GVCA. For more information go to ajg.com/ca or call 519.772.0972 © 2021 Arthur J. Gallagher & Co. | Arthur J. Gallagher Canada Limited

URBAN DEVELOPMENT EXPERTS @Melloul_Blamey

THE OFFICIAL PUBLICATION OF THE GRAND VALLEY CONSTRUCTION ASSOCIATION

www.gvca.org • @GVCANews

VOLUME 10 • ISSUE 4 JULY - AUGUST 2021

THE

FINANCE, INSURANCE & BONDING

ISSUE

PUBLISHER Martha George EDITOR James Raiswell

CONTRIBUTORS Jacqueline Armstrong Gates Andrew Cartwright Giovanni Cautillo Jeramie Gallichan Paul Knowles Steve Ness Katherine Salis Monica Szabo

LAYOUT & DESIGN Janet Day

12

14

18

22

FEATURES

DEPARTMENTS

12 ‘WE’RE PLAYING MONEYBALL WITH BUILDING ASSETS’

4

WELCOME

Messages from the Chair and the President

5

CRYSTAL BALL REPORT

Balmoral Recreation Centre, Brampton, and Hespeler Library/Chaplin Family YMCA project, Cambridge

6

SAFETY

ADVERTISING SALES Lana Lang-Nagle lana@gvca.org 519-622-4822 x128 SUBSCRIPTION editor@gvca.org INQUIRIES & LETTERS

TO THE EDITOR

GVCA Journal is published six times yearly by the Grand Valley Construction Association ©2021. All rights reserved.

Canadian Publications Mail: Product Sales Agreement #42259531; ISSN 2368-2930; in Canadian Periodical Index.

GVCA Journal subscription is a benefit of Grand Valley Construction Association membership and is included in membership fees.

Magazine Subscription: Canada $28/yr (incl. 13% HST).

US/International $32/yr (CDN).

Return undeliverable addresses to: Grand Valley Construction Association 25 Sheldon Drive, Cambridge, Ontario N1R 6R8

©2021 Grand Valley Construction Association. ll rights reserved. The contents of this publication A may not be reproduced by any means, in whole or in part without prior written consent of the publisher

14 LINK2BUILD WEBINAR: USING CONTRACTS TO MANAGE RISK 18 SUPPLY CHAIN UNCERTAINTY –

WHAT CAN WE DO? 21 DIGITAL BONDS: THE WAY OF THE FUTURE – AND THE PRESENT 22 THE SURETY MARKET: PREPARING FOR TURBULENT TIMES 24 ACRONYMS TO LEARN: FINTRAC, PCMLTFA AND CRM2 26 GVCA EDUCATION COURSE

OUTLINE 2021

Put Health into Health & Safety

8 FINANCIAL Making the Most of Your Financing

11 LEGAL Construction Insurance: An Ounce of Prevention is Worth a Pound of Cure

31 GVCA EVENTS &

EDUCATION CALENDAR 31 ADVERTISERS’ INDEX

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

3

WELCOME TO JOURNAL A MESSAGE FROM THE CHAIR

RAPID COVID-19 TEST KITS AVAILABLE TO GVCA MEMBERS I hope that when this pandemic is finally behind us, we can all take a moment to reflect on just how well construction has managed itself.

Since day one, construction has been on the forefront of containing the spread of the virus and taking extraordinary steps to ensure worker safety is paramount.

And, despite a few outbreaks that have received attention in the media, our industry has managed to keep the number of site outbreaks low, and the number of workers affected by those outbreaks contained.

The last numbers I saw from the Workplace Safety and Insurance Board showed that of the 21,133 approved clams relating to COVID-19 workplace transmissions,

A MESSAGE FROM THE PRESIDENT

a little less than 1.4 percent were from the construction industry.

That’s good news, but it does not give any of us cause to rest on our laurels. With vaccines now available to everyone of a working age in Ontario, we can bring those numbers down even further.

GVCA is pleased to be working with our local Chambers of Commerce to supply free COVID-19 Rapid Antigen Test kits to our members. These are available to companies that employ less than 150 people and you do not need to be a Chamber member to participate. Thank you to

Edward (Ted) Dreyer

Ian McLean, President & CEO of the Greater Kitchener Waterloo Chamber of Commerce and Greg Durocher, President & CEO of the Cambridge Chamber of Commerce for extending this service to local GVCA members. You can contact them directly or visit www.chambercheck.ca. If you are based outside the K-W and Cambridge areas, contact your local Chamber of Commerce for details about their distribution program.

Let’s work together to put this pandemic behind us and get back to our normal lives again.

INVEST IN YOUR PEOPLE Now that we’re heading into what I hope are the final months of the pandemic, my thoughts are naturally turning to what’s next.

One of the things on my mind is focusing on those things that I took for granted before the pandemic. A lot has changed since March 2020, and there’s value in reflecting on that.

I think most business owners would tell you the pandemic has put even more of a focus on their employees—their safety and the commitments they make to their employers. If that’s the case, I’d urge you to carry that sentiment forward long after the pandemic ends. GVCA can help.

Martha George, GSC

4

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

We are launching several new resources.

The first is a compensation survey. We’re asking participants to share data about the current salaries and benefits for their PMs, site supers, estimators and admin support

staff. Everything will be kept anonymous, and we’ll share the aggregated survey results with participants free of charge.

We’re also launching a sponsored mentorship program that will run from October to April. Our goal is to help members create partnerships with one another to support their personal and professional development.

Look for more information on these initiatives on our website, and take advantage. They’re fabulous programs that will only help you strengthen your organization—and your relations with your employees—even further!

CRYSTAL BALL REPORT

Crystal

Ball

PRE-BID REPORT

UNMATCHED CONSTRUCTION INTELLIGENCE

GVCA’s Crystal Ball Report is a unique and insightful member service. Updated daily by GVCA staff, the report tracks planned projects during the pre-bidding phases, following them from concept to design to prequalification, construction and completion.

Hespeler Library/Chaplin Family YMCA project

Balmoral Recreation Centre Brampton, ON | Value: TBD

Cambridge, ON | Value: $800,000 Project details: Public-sector Balmoral Recreation Centre was built in 1964. The building is approximately 1,600 square metres, of which approximately 940 square metres of the natatorium structure and pool tank is to remain.

Approximately 635 square metres of the existing building is to be demolished, and 2,125 square metres of new space is to be added.

funding for the Hespeler Library will be used to refurbish an aging elevator to improve reliability and add new accessibility features. The improvements will also make the elevator more energy efficient. Renovations to the Chaplin Family YMCA will replace heating, ventilation and lighting systems as well as the exterior stucco to make the facility more energy and cost efficient.

The new building will include such features as: a centrally located reception area, a 25-metre lap pool, a sauna, a double gymnasium with storage room, change rooms and washrooms, a multipurpose room, new administrative spaces, and ancillary support and storage spaces as required.

The exterior of the property will feature a small to mid-sized outdoor splash pad, an outdoor playground area, site fencing, planting, hardscaping, additional parking, and paving existing hard surfaces, and common public gathering spaces.

The City of Brampton is currently prequalifying general contractors for the work. Construction is expected to begin in August, and the city has targeted April 2023 for completion.

Market Snapshot Q2 2021 Waterloo Region & Guelph As real estate prices across Southern Ontario continue to skyrocket, Waterloo Region & Guelph continue to experience an influx of individuals and businesses looking to take advantage of relatively affordable RE prices. The industrial sector has remained strong through the Covid-19 pandemic with demand outstripping supply. While the amount of inventory currently under construction remains low, the overwhelming demand for industrial space has caused the number of proposed future developments to increase. The effects of COVID-19 continue to have a negative impact on the strength of the Region’s office market. This has lead to a steep decline in the amount of office buildings under construction. There are hopes that as the Province begins to reopen that the demand for office space will recover.

INDUSTRIAL SF TOTAL

TOTAL BLDGS

OFFICE

SF UNDER CONST

# UNDER CONST

TOTAL BLDGS

SF TOTAL

520

232,058

5

19,990,859

434

24,283

8,971,384

240

7,321

SF UNDER CONST

# UNDER CONST

Cambridge

33,996,695

1,464,347

37

0

0

Kitchener Waterloo

1

5,157,490

94

422,000

2

1

7,408,625

121

0

0

Guelph

26,860,649

376

491,604

3

1,835,014

61

66,000

1

Total

89,819,587

1,570

755,266

10

15,865,476

313

488,000

3

For more market statistics and information please contact: Connor Ward, Sales Representative & Research Coordinator – connor.ward@cushwakewr.com

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

5

k

og pr

rams

ea

S

VELOP L DE M

FE

S

NA

PRO

m e n ta l e

ss a

i sta n c e

lo y

t

r

a

ns

p o rtat i on

e

PUT HEALTH INTO HEALTH & SAFETY

e

IO

ib

le

hours

fl

e

Is there a better time than now during COVID lockdowns and restrictions to put some focus on the health in “health and safety”?

x

sa f

s

br

ge

emp

en

s

ll

ne

a

fi t

we llne

h

Health and wellness have been considered separate areas of focus from safety. Now is the time to integrate the two. There are many reasons for this and a great article that talks about this was written in Occupational Health & Safety Magazine.

The model incorporates four elements and is consistent with

It’s called Safety and Wellness: The Critical Connection.

the recommended best practices in the National Standard

So how do you start integrating the programs and get commitments from leadership and employees? One way is through your health and safety management system.

The Health and Safety Excellence Program (HSEP) incorporates this topic under “Workplace Health Promotion.” One way to integrate is to participate in HSEP and work at building health and wellness into your safety program. Plenty of HSEP guides and resources are available to help you

for Psychological Health and Safety in the Workplace. All elements of the model are interrelated, and together are fundamental for helping workplaces align business practices that support worker well-being and drive organizational success in a sustainable manner.

The implementation is based on a widely used management system model and aligns easily with your health and safety management programs. It contains the following elements:

P lan – an ongoing and recurring process,

on your journey, and a bonus for participating is that you receive rebates and recognition for your good work. This topic is also part of COR 2020, so your work can be used

D o – implementing the steps of your program,

C heck – evaluating and reporting on the effectiveness

in both programs.

We seem to think about weight loss or yoga or meditation when we hear workplace wellness but there are many other ways to include health and wellness initiatives. These include an employee assistance program, mental health promotion,

A ct – periodic review of the program by management.

psychological first aid, vehicle safety, personal health and

So take this time to consider integrating health and

safety, and health and safety at home.

wellness into your workplace culture. I bet you can

If you are looking for some helpful resources pertaining to organizational health, check out the Ontario Workplace Health Coalition. The coalition is a non-profit volunteer organization that pulled together a comprehensive workplace health model that was derived from the World Health Organization’s healthy workplace model.

6

and impact of action taken,

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

find some programs you implemented as a result of COVID requirements that can fit right into the HSEP Workplace Health Promotion requirements to kick start your journey.

The article was written by Monica Szabo, the is the HSEP Lead at GVCA. Monica also serves on the board of the OWHC.

EN

T

ss

c

SAFETY

Get Your Free Rapid COVID-19 Test Kits GVCA is pleased to partner with our local Chambers of Commerce to supply free COVID-19 Rapid Antigen Test kits to member firms that employ less than 150 people.

You do not need to be a Chamber member to participate. If you are based in the Kitchener, Waterloo or Cambridge area visit www.chambercheck.ca to register. If you are based outside that district, contact your local Chamber of Commerce for details about their distribution program or visit www.occ.ca/kits.

Exclusive to GVCA Members One of the first N95-equivalent PPE surgical grade respirator masks made in Canada are available to you at half-price!

These HORIZON respirators provide Level 3 protection and are available to GVCA members for just $0.88 each. Visit our website at www.gvca.org for more information or contact us at 519-622-4822.

Construction Insurance and Surety Specialists Local Knowledge and Expert Advice Industry Specific Programs Tailored Insurance and Surety Solutions

cowanconstruction.ca

gvca.org GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

7

FINANCIAL

MAKING THE MOST OF YOUR FINANCING Many construction companies rely on financial leverage such as loans, mortgages, and credit facilities to sustain and grow their businesses.

Current economic conditions may place higher reliance on financing for the operational success and continuance of your company. Once you have acquired financing, from a bank, a private lender, or another financial institution, it is important to plan for what comes next.

The following tips will help you get the most out of your financial leverage.

An essential place to start is understanding the terms of your loan, ideally before signing the agreement to acquire funding. Reviewing your loan agreement, including any subsequent amendments, can help to ensure your continued understanding of the terms agreed upon with your lender. Thoroughly read your loan agreement to better understand its 8

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

key components and identify opportunities, including the following:

INTEREST RATE Is your interest rate fixed, meaning it is locked-in for a specific term, or is it variable (i.e., floating), meaning it fluctuates with market rates?

This presents an opportunity to negotiate fixed interest rates on loans that are currently variable in order to lock-in at a lower rate for a fixed term.

REPAYMENT TERMS

Many business loans with variable rates are based on the Prime rate as the benchmark rate, with the interest rate being Prime plus or minus x%.

This section of the loan agreement will specify the amount and frequency of payments required over the duration of the loan. A longer loan term will result in lower payments, but higher interest costs overall.

Given the economic impact of the global pandemic, the cost of financing has decreased significantly with interest rates near historic lows.

Consider whether your loan agreement allows some flexibility to make prepayments without incurring extra fees.

Prepayments are in addition to your

scheduled payments and allow you to repay the loan early.

A shorter loan term, more frequent payments (e.g., bi-weekly vs. monthly), and prepayments against the principal can help save on interest costs over the duration of your financing term.

REPORTING REQUIREMENTS Does your lender require annual financial reporting?

The reporting requirements section of your agreement will specify which type of financial reporting is required, such as a Notice to Reader, Review or an Audit engagement. These engagements vary from providing no assurance, to limited assurance to the highest level of assurance, respectively. It is important that your accountant is aware of the type of engagement required as well as the frequency and deadline of reporting (e.g., annually, within 120 days of each fiscal year-end).

Many financing agreements will also call for cash flow projections or proforma financial statements. This is a good exercise to forecast the upcoming year and cash flow requirements.

Ted Dreyer

Be confident in the resolution of your dispute.

Certified Adjudicator edreyer@kw-law.com 519-744-4491

Ted Dreyer has been certified by the Ontario Dispute Adjudication

226-339-3714

for Construction Contracts (ODACC) as an adjudicator for the purpose of the Construction Act.

Serving Clients Throughout Ontario C O N S T R U C T I O N L I T I G AT I O N

|

C O R P O R AT E L A W

55 King Street West, 6th Floor, Kitchener, Ontario

|

EMPLOYMENT AND HUMAN RIGHTS

|

A D J U D I C AT I O N

|

k w - l a w. c o m

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

9

However, there are costs associated with preparing the reports that are important to be aware of.

SECURITY The security section of a loan agreement specifies the asset(s) the lender has a legal claim to if the borrower defaults on the loan. These assets are referred to as collateral.

Your loan agreement may require specific assets as collateral, a general security agreement and/or a personal guarantee as security.

COVENANTS Financial covenants are ratios that the borrower is expected to meet. They are typically calculated on an annual basis but could be required to be maintained

more frequently. One common financial covenant is the debt-to-equity ratio. This ratio is used to evaluate a company’s financial leverage by assessing its ability to meet its financial obligations (such as making loan principal and interest payments). Another common ratio is the current ratio, which is a liquidity ratio that measures a company’s ability to repay debt obligations that are due within one year.

A breach of covenants may allow the lender to increase the interest rate on the loan or demand immediate repayment of the balance. Monitoring your debt covenants is essential to ensure your business’ financial health.

In addition to understanding your loan terms and reviewing your current leverage, it is important to monitor future spending as well. For instance, avoid using a short-term excess of cash for

purchases that could otherwise be financed. As an example, if you have a surplus of cash this month and spend it on a vehicle, you could face trouble covering operational costs in a following month with a cash shortage. It is more difficult to get a working capital loan to cover payroll than it would have been to get financing for a vehicle purchase in the first place.

With a strong understanding of your current leverage situation, you may recognize opportunities to help your business save money on interest costs, repay your debt quickly, ensure compliance with financial covenants, and plan for the future.

This article was written by Katherine Salis, CPA, CA of RLB LLP’s Construction Team.

Contact her at 519-822-9933 or visit rlb.ca.

ATTENTION CONSTRUCTION INDUSTRY EMPLOYERS Are you looking for skilled employees with industry-recognized training in carpentry, blueprint reading, electrical, and/or plumbing?

Do you need job-ready workers with First Aid and Working at Heights Certificates?

We have the workers you are looking for!

Connect with job seekers today.

Call 519-756-7665 or visit st-leonards.com. *Mention the GVCA Journal and get insider tips on Employer Incentives.*

www.aclsteel.ca 519.568.8822 2255 Shirley Drive Kitchener, ON, N2B 3X4

ISO 9001: 2015 Registered

10

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

LEGAL

CONSTRUCTION INSURANCE:

AN OUNCE OF PREVENTION IS WORTH A POUND OF CURE It’s no secret that construction projects involve many moving parts: multiple parties, tools, equipment and technology.

So, how do those involved in construction projects ensure that they have proper and adequate insurance coverage, so that everyone in the construction pyramid, including third parties, is protected?

In addition to being a prerequisite for most construction contracts, construction insurance helps protect parties from damages or losses. It assists contractors or construction companies in securing business and it may strengthen their reputations as reliable and responsible operations. The old proverb, “an ounce of prevention is worth a pound of cure” is aptly stated when it comes to insurance.

It is important to consider the many types of construction insurance available to you, the protection they provide and consider seeking help from a professional insurance broker.

Below we outline the key types of insurance most common in the industry: •A commercial property policy protects a company from

damage or destruction to their assets including buildings, equipment, inventory (etc.) while commercial general liability policy covers potential bodily injury and property damage to third parties.

•B uilders risk insurance provides coverage for buildings

and other structures while they are under construction.

Typically, these insurance policies will cover, among other things, building materials, foundations, and temporary structures such as scaffolding and outdoor fixtures, but will include exclusions arising for breach of contract, and damages arising from the policyholder’s negligence.

•W hether it’s a new build, addition or major renovation,

wrap-up liability insurance for construction projects is an important way to protect against potential bodily injury or property damage to third parties.

•W hile the name inland marine insurance comes from an era

when this class of insurance covered primarily ocean-bound materials and vessels, this is no longer the case. Now it can apply to tools and equipment used by contractors and also covers property in transit and mobile equipment, among other things.

•W orker’s compensation covers the following costs after a

covered incident: medical expenses, missed wages, ongoing recovery costs related to an injury, legal fees when an injured person sues the policyholder and funeral costs and death benefits.

•L astly, commercial auto insurance policies typically provide

liability coverage against physical damage, medical payments and uninsured motorist coverage.

In addition, construction projects may require various bonds to ensure that the work is completed. Construction bonds are effectively another type of insurance, “guaranteeing” certain aspects of a contract or project, as well as the project’s completion.

There are a number of different construction contract bonds including: bid bonds, which guarantee that bid proposals are serious and that contractors can financially support the project if their bid is chosen; performance bonds, which ensure that contractors adhere to certain standards and finish the project laid out in the contract; payment bonds, which guarantee that the contractor can provide payment to subcontractors, labourers and suppliers; and maintenance/warranty bonds, which protect the project owner from defective work or faulty materials for a length of time after the work is completed.

As litigators, we regularly help clients navigate through onsite injury, bankruptcy and property damage issues. We have also seen insurance companies respond to claims and take “off coverage” positions because the policy does not cover the loss in question. If you find your business in a similar situation, please feel free to reach out to us.

Jacqueline Armstrong Gates and Jeramie Gallichan are lawyers at Gowling WLG in Waterloo Region, practicing litigation across multiple industries, including construction. Learn more at gowlingwlg.com. We would also like to thank Erin Uberig, our summer articling student, for her contribution to this article.

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

11

FEATURE

‘WE’RE PLAYING MONEYBALL with Building Assets’

A research team from the University of Waterloo’s Civil and Environmental Engineering Department, led by Professor Tarek Hegazy, has devised a tool that could help budget-conscious public-sector organizations prioritize their annual capital spends.

New software created by the team draws on artificial intelligence and text-mining techniques to analyze written buildinginspection reports, and highlight those repairs that are urgently needed.

the need for repairs. As project lead researcher and PhD student Kareem Mostafa explains, “We’re using actual data on buildings to make spending decisions more objective.”

The challenge for public-sector entities is that their capital-spend wish lists often exceed available budgets. Those organizations are forced each year to prioritize some repairs over others—at the risk of creating failures in facilities where projects weren’t funded. And while facilities managers rely on inspection reports to understand where needs are greatest, elements of those reports can be subjective and often lack granular data.

Researchers worked with the Toronto District School Board (TDSB) to analyze the inspection reports from the roofs of 400 of the board’s schools. Many TDSB facilities are at least 40 years old, and the board estimates its maintenance and renewal backlog to be greater than $4 billion. For the last five years, the province has allocated an average of $300 million annually for repairs.

The University of Waterloo tool aims to replace that lack of detail and subjectivity with precise and objective measures of

12

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

One of the board’s greatest challenges every year is identifying those projects that are of the highest priority, and which can wait another year.

The University of Waterloo team developed a computer model that scanned one- and two-page TDSB roof inspection reports for keywords and phrases such as ‘damage’, ‘leaks’ and ‘surpassed life’.

By analyzing the frequency of those key terms and phrases, plus factors such as the age of roofs, the software divided the roofs into four categories based on the urgency of repair or replacement.

The researchers also found that subjectivity was getting in the way of optimal reporting. Mostafa says that among the reports his team studied, inspectors almost always tended to overstate the immediate need for building repair.

Providing an objective analysis of the building’s condition was therefore critical.

WE’RE USING ACTUAL DATA ON BUILDINGS TO MAKE SPENDING DECISIONS MORE OBJECTIVE. / Kareem Mostafa The goal was to give the school board an objective way to target its limited funds, speeding up the assessment process and helping it spend money where it makes the most sense.

“We’re playing Moneyball with building assets,” says Mostafa. “By using data on buildings instead of opinions, our model also takes potential political headaches out of the process.”

He adds that although the software was developed to assess the need for roof repairs, it can be tweaked to help prioritize other kinds of work for organizations with budget limitations and many buildings to maintain.

He and his team are also working to incorporate other kinds of data, including AI analysis of photographs, into the assessment model. The potential also exists for the model to be linked with

construction cost information services such as RS Means that would even enable it to produce budget estimates. This work will ultimately be integrated with the team’s other research of using powerful AI optimization to handle millions of assets that compete for funding over a multi-year plan.

Mostafa says he expects to submit his PhD thesis by the end of the Spring term. After that, he says, commercializing the project is not out of the realm of possibility.

A paper on the research team’s work, Data mining of school inspection reports to identify the assets with the top renewal priority, appears in the Journal of Building Engineering. The paper was written by Mostafa, as well as Prof. Tarek Hegazy of the University of Waterloo, and Ahmed Attalla, a TDSB project manager.

EXPERTS FOR YOUR BUILDING ENVELOPE BUILT-UP ROOFING MODIFIED BITUMEN SINGLE-PLY MEMBRANE SUBGRADE MEMBRANES TRAFFIC COATING CONESTOGA ROOFING

COMMERCIAL, INDUSTRIAL, INSTITUTIONAL FLAT ROOFING TF:

1-888-518-7663 • conestogaroofing.com

CONESTOGA WATERPROOFING (a division of Conestoga Roofing)

COMMERCIAL, INDUSTRIAL ABOVE/BELOW GRADE WATERPROOFING T:

519-620-1515 • conestogawaterproofing.com

331 Sheldon Dr, Cambridge, ON N1T 1B1

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

13

FEATURE

LINK2BUILD WEBINAR:

USING CONTRACTS TO MANAGE RISK In an information-packed webinar on the theme “Managing the Risk of Price Volatility and Supply Chain by Contract” that was presented by the Link2Build group on May 20, there were a lot of key take-aways.

By Paul Knowles

14

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

SUPPLY RISK IS SOMETHING TO BE TAKEN VERY SERIOUSLY, AND TO BE DEALT WITH PROACTIVELY, SINCE “RISKS OF SUPPLY ARE ALMOST ALWAYS ON THE CONTRACTOR.”

But perhaps the two most important were: it’s flat-out foolish not to build risk-management into your contracts, whether you are a general contractor, a sub, or an owner; and, equally important, COVID-19 may continue to present challenges, but it no longer offers an excuse for delays or failures.

The seminar featured lawyers Dan Leduc of Norton Rose Fulbright LLP, a director of the Ottawa Construction Association; and Ted Dreyer, of Madorin Snyder LLP, the current Chair of the Grand Valley Construction Association.

Leduc made his position concerning risks and contracts very clear from the outset: “Why bother managing risk by contract? Because you’re contractors.

Everything you do – lease equipment, union agreements, bid processes – everything you do is done by contract. The key is assessing, minimizing and transferring risk, by contract.”

Leduc acknowledged that times have changed. “The days of [relying on] personal relationships are pretty much gone now. It is very important for you to read your contracts.”

He stressed the need, not only to read the contract, but also to understand it.

It can be very important to recognize the difference, for example, between expressed and implied terms.

Key issues like price increases engendered by unexpected increases in the

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

15

cost of materials can be not expressed, but understood. Lumber is one example.

Steel, which has gone up dramatically in the last six months another. If a provision for passing on a price increase is not expressed in the contract, it probably cannot be assumed.

Lumber, steel and other material costs are not the only such issues. At the outset of the COVID-19 pandemic, it was often possible to pass on extra costs or explain project delays because of the outbreak.

However, pointed out Leduc, COVID-19 “is no longer an unknown event.” That means a force majeure provision (referring to unforeseeable circumstances that prevent someone from fulfilling a contract) may no longer apply. That reality sends contractors and subcontractors right back to the contract to determine who the risk of COVID-19 is being addressed and allocated to. If the terms turn out to be “oppressive,” said

Leduc, “bring the attention of oppressive terms to your construction and trade associations.”

Dreyer added that while the pandemic is now a known event, the consequences of COVID-19 are still largely unknown; however, he added, “The longer we go in the pandemic, it’s harder to say that these are unforeseen consequences.”

The risk inherent in the current, volatile supply chain, coupled with the pandemic, is serious stuff, say Leduc and Dreyer.

Leduc pointed to the mathematics of profitability: “With average mark-ups at 10 to 12 percent,” changes in costs that have to be absorbed by the contractor “can eat into those margins very quickly.”

And Leduc stressed that supply risk is something to be taken very seriously, and to be dealt with proactively, since “risks of supply are almost always on the contractor.”

Strassburger ad 7.125x4.675 GVCA print.pdf

C

M

Y

CM

MY

CY

CMY

K

16

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

1

2020-03-31

10:08 AM

There is no easy answer, he admitted.

Leduc suggested that the contractor can decide to qualify their bid – “an excellent way to manage risks”, but a tactic that raises the threat of being non-compliant, or being disqualified in the tender process.

He outlined several strategies to be used in managing risk through contracts: contingencies and reserves; fast tracking the project; early material procurement; short-term bid expiration (three to five days); and including a price adjustment clause. None are sure-fire solutions, and they may not be accepted by the client, but Leduc urged his audience to consider all options to protect their own interests in a bid.

He noted that 80% of material used in Canadian construction comes from the United States or Asia; that means all manner of problems can impact our supply chain – decreased supply

because manufacturing facilities are temporarily closed; increased demand from the domestic market in those countries; shipping and delivery challenges. He raised some key questions: “In the contract, are we willing to assume the risk? Can we allocate the risk upstream?”

He cited a clause stating, “The amount of this subcontract shall be increased to reflect additional costs to obtain the materials,” providing that general contractors and owners “are kept in the loop” concerning such developments.

He also recommended establishing a baseline of costs, and recommended the US Bureau of Labor Producer Price Index as the most up to date resource for setting such benchmarks.

Leduc noted that, “It is human nature to be hesitant to ask questions,” and said that contractors have to shake off that

reluctance. “Investigate your extended supply network. Do not assume availability of supplies.”

He concluded his part of the webinar with words of cautious optimism: “Given that we’re into Year 2 of the pandemic, with mass vaccinations underway, your productivity should actually increase over the next few months. [Pandemic-related] risk management [should be] less of a priority, going forward.”

Dreyer’s presentation focused on how contractors and subs can prevent price increases from being passed along by suppliers. Again, the answer was, it depends on the contract.

“It’s a pretty simple answer. If there is no provision in the contract for material escalation, the answer is no. They are bound by that price.” He added that the real question is, “Is there a contract?

How do you know when the dance is over?” Dreyer stressed that the negotiation waltz ends when there is “Offer and unconditional acceptance.” That means acceptance of the offer is unconditional; at that point, neither the offer or the acceptance can be withdrawn.

Dreyer pointed to situations where there is no unconditional acceptance – for instance, a conditional acceptance. That, he says, is actually “a counter-offer” and not final.

He also cautioned his audience that where a tender process is involved, “Don’t try this at home. Call your lawyer.”

Because, stressed Dreyer, “the concept of unconditional acceptance” is the key to locking in prices; and that, both presenters stressed, can be the key factor between profit and loss on a project carried out in such volatile times.

Canada’s market leader in Surety 20524 (3/21)

You can rely on our knowledge and expertise to assess risks and develop innovative solutions, tailored to meet your surety needs.

Visit intactspecialty.ca to learn more today.

Red Square Brackets Design and Intact Insurance Design are trademarks of Intact Financial Corporation used under license. ©2021 Intact Insurance Company. All rights reserved.

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

17

FEATURE

SUPPLY CHAIN UNCERTAINTY – WHAT CAN WE DO?

An unintended consequence of the global pandemic has been the extreme volatility with which the construction supply chain has had to contend.

By Giovanni Cautillo President, Ontario General Contractors Association

The lack of certain products in the industry, or the spike in the cost of items that were otherwise commonplace on construction projects, has made accurately pricing a project akin to the nexus of quantum physics and black magic!

From the simplest items that most contractors would take for granted (rebar, drywall, lumber, concrete, etc.) to complex HVAC systems that were manufactured elsewhere and shipped for the specific project in question, everything needs to be reviewed and re-evaluated for costs and scheduling.

As I just touched upon, the areas that were the most noted to change were the costs of lumber, steel and the supply of concrete. The OGCA received notice after notice from groups, associations and organizations communicating that the costs would be increasing—often without warning.

18

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

In the past, it was customary for a slight increase to occur at the start of the construction season, or to coincide with the provincial and municipal budgets being tabled. This was something that all contractors would be aware of and would price future projects accordingly. Unfortunately, the industry, in the past, has not been affected to this magnitude and by so many components all at the same time. The current situation has no historical predictors and does not follow any logical progression. It seems like utter chaos.

To this point, it isn’t solely the cost fluctuation that is confounding. It is the erratic nature of the increases that has also prompted general contractors to rethink and retool their estimates. With some items in the supply chain, the construction industry is actually seeing daily increases without any reprieve.

This is not typical. Contractors need to understand the full

THE CONTRACTORS HAVE ERRATIC COSTS COUPLED WITH UNCERTAINTY IN DELIVERY OF PRODUCT OR COMPONENTS. implications in order to adequately contend with this ever-increasing threat.

Yes, I used the word threat! Let me explain why.

On the surface, one or two items increasing is not a cause for alarm. But this “new normal” that we are facing is actually something for which contractors cannot completely prepare.

A contractor may submit a price, and based on the time of tender and the timing of the award, that initial bid may have actually inflated to the point where, should the contractor be the successful proponent of the project, they would have lost money before even commencing the build! If this is not a threat, then I am not sure what is!

So, the contractors have erratic costs coupled with uncertainty in delivery of product or components. How does our ICI

construction sector contend with these variables: price accordingly to make a profit; peer into our crystal balls to ensure delivery time certainty; contend with the everexpanding COVID-19 issue; and ultimately still acquire and deliver projects professionally?

LET’S BEGIN WITH WHAT WE CAN TACKLE. The OGCA is in the process of communicating to the buyers of construction, all stakeholders in construction and the greater construction supply line to address the current validity periods that are being tabled in tender awards.

With some jurisdictions, the timeline between the tendering of a potential project and the ultimate award of said project

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

19

is upwards of 90, 150 or 180 days. This is not acceptable under normal non-COVID-19 circumstances, and it is especially not acceptable or workable in our current situation.

The OGCA is launching a concerted effort to have the entire construction industry return to a 30-day award timeline. This has been the historically accepted norm for decades, but slowly, we as an industry allowed this to creep ever upwards to its currently unattainable threshold.

It has been noted that things change due to evolution or revolution. The construction industry allowed a slow evolution to the current timelines, and we now require a revolution in order to properly rectify this to regain some semblance of control over the situation.

Understand that buyers of construction will continue to try to unilaterally download risk onto the general contractors, but this is only possible if you, as the contractor, allow for this to occur.

We have allowed the timelines to ever expand without pushing back. We now need to take a concerted effort to ensure that award timelines return to 30 days. Look out for our OGCA bulletin on this shortly.

IS THIS THE COMPLETE SOLUTION? No. But it is a start and something in which contractors have a direct say. The industry does not need to accept 90, 150 or 180 days prior to award as the normal timing, and the OGCA can assist the industry in qualifying bids so that they attain acceptable limits. This one step will at least lessen the gap between the bid and the award and the uncertainty that comes with the constantly evolving landscape that is our current supply chain.

Having more vaccinations is also a step that our industry can employ to address the fluctuations of the supply chain. A great many of the issues have been caused directly by manufacturing

CONTRACT REVIEW PROCUREMENT/TENDER DISPUTES CONSTRUCTION LIENS CONSTRUCTION LITIGATION/ADJUDICATION

Providing legal and business solutions for over 160 years 45 Erb Street East, Waterloo, ON | www.kwlaw.net | Tel: (519) 886-3340

20

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

HAVING MORE VACCINATIONS IS ALSO A STEP THAT OUR INDUSTRY CAN EMPLOY TO ADDRESS THE FLUCTUATIONS OF THE SUPPLY CHAIN. disruptions in the regular production of construction-related items. Having a COVID-19 outbreak at a main gypsum processing and manufacturing plant and having said plant closed for 14 days or greater disrupts the flow. Being unable to produce rebar for the same issue disrupts the flow. Not having enough drivers to deliver concrete because a majority have COVID-19 or are afraid to contract it, disrupts the flow.

The OGCA has also had success in having construction included on the “essential workers” list for the phase two vaccination rollout. This will help our sector regain control, but we need workers to get vaccinated for this to work.

Ultimately, our sector must work together to reduce timelines for award of tenders and push for more workers being vaccinated. These are two areas over which contractors have some control. Let’s continue to work together to get through this and overcome this current threat.

Should anyone want to discuss the timelines of a bid award, like to qualify a bid, or if you require any assistance from the OGCA, please contact me directly at giovanni@ogca.ca or via phone at 905-671-3969.

FEATURE

Digital Bonds:

The Way of the Future – and the Present As we move through the third decade of the 21st century, the old practice of submitting a tender along with a paper bid bond or consent of surety is quickly going the way of the dinosaur.

The five years between 2015 and 2020 saw the demand for digital bid bonds explode.

Public bodies at all levels of government are now requiring tenders to be submitted electronically via an automated online bidding platform, along with digitally prepared tender bonds.

With the onset of the COVID-19 pandemic in March 2020, the need for physical distancing made the task of creating, executing and delivering hard copies of multi-party documents even more complicated. In response, construction purchasers have expanded their use of digital bonds from the tendering phase to the contracting phase and many are now requiring that performance and payment bonds be submitted electronically as well.

Encouraging to be sure, and yet, while there is no doubt that e-bonds are here to stay, there is still much confusion, unfamiliarity and even skepticism about the nature of digital bonds, and their benefits.

What is a digital bond; and what it is not By way of a working definition, a digital bond is a surety instrument that is created in an online e-bonding system and uploaded to an automated online tendering platform (e.g., MERX, eSolutions), or delivered by email. In addition, it must meet the three threshold criteria identified by the Surety Association of Canada (SAC) as essential to any legitimate digital bond: 1. Integrity of content: The assurances that the document received is the true document executed and the content has not been changed or altered.

2. Secure access: Restricting the access to the document to those authorized to view and/or download it.

3. Verifiability/enforceability: Assurances that the document was duly executed by the parties identified and that it is enforceable in law.

The key here is that the document includes embedded security protocols that provides an owner with assurances that the digital bond was signed, sealed, and issued by the signatory, and that it had not been tampered with.

To better understand digital bonds and the benefits they offer to the bidding and contracting process, it is important to first understand the difference between a true digital bond and a “facsimile” of a bond.

SAC often encounters tender documents which allow for (or even require) bid bonds to be prepared manually and then scanned into a PDF file and transmitted to the owner along with the tender. Such documents are sometimes erroneously referred to as “electronic” bonds.

A scanned PDF file is not a digital instrument, but a picture/image of a manually prepared bond. They are certainly expedient and, technically speaking they are “electronic” in the sense that the act of scanning a document involves the use of technology.

However, scanned PDFs are not prepared using an online e-bonding system and cannot easily be integrated into the bidder’s online tendering platform. More to the point, they do not meet the SAC threshold criteria discussed above.

The very nature of a scanned PDF file makes it impossible to verify its authenticity without independently confirming with the issuer.

Nor can an owner verify that the document received, was the true document issued and that the original had not been tampered with or altered in any way. In a worst-case scenario, the authenticity of such non-

verifiable documents could become the subject of a legal challenge by the issuer.

Digital bonds vs paper bonds: the benefits For providers of bonds (i.e., sureties, brokers, contractors), the most obvious benefit to “going digital” is the expedience of a streamlined and automated bond issuance process.

In the paper world, a bond is prepared, signed, and sealed by a surety or broker.

It must then be forwarded to the bonded contractor for a second signature and seal, before being physically delivered to the end user as part of a bid package. Contrast this with the digital bond process where everything is done in real-time through an online e-bonding system on the issuer’s desktop.

No paper, no physical seals, no couriers.

Far more importantly, a true digital bond will meet all three of SAC’s threshold criteria, providing end-users with assurances of builtin verifiability and integrity. There will be no need to contact the issuer for independent confirmation of validity. Indeed, with these embedded safeguards, a digital bond is more reliable and verifiable than its hard copy equivalent.

Another positive side-effect of the digital trend will be a reduced chance of errors or improper execution. Among the more common complaints voiced by project owners is the frequency of improperly completed tender bonds that result in a tender being disqualified.

An e-bonding system serves as an electronic editor against these kinds of errors and will not allow the bond to be released unless all fields are completed, and the electronic signatures/seals have been affixed.

Lastly, from an environmental standpoint, any automation of paper-heavy processes will lead to a diminished carbon footprint.

Simply put, digital bonding provides a green alternative to the traditional approach.

To find out more about digital bonds, contact your broker or visit www.suretycanada.com.

This article was written by Steven D. Ness, President, Surety Association of Canada. Steven can be reached at (905) 677-1353 and surety@suretycanada.com.

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

21

FEATURE

The Surety Market:

PREPARING FOR TURBULENT TIMES

The past 18 months have presented contractors in Canada with numerous changes and unprecedented uncertainty.

Lockdowns, health and safety, pandemic restrictions on the construction sector, labour challenges, supply chain bottlenecks and increasing costs are just a few.

Despite these challenges, contractors have remained remarkably resilient.

Many have adapted quickly to target work in areas where shutdowns haven’t been prevalent. Health and safety teams have altered their protocols to keep staff safe on the jobsite, and estimators have continued to manage shifting sands on pricing and ensure those risks are addressed appropriately.

Surety companies across Canada in 2020 have been assessing the same challenges that contractors are facing and trying to determine how contractors would adapt.

They were trying to determine if these strains would lead to financial challenges and increased contractor insolvency.

At the start of the pandemic, the surety market saw several bond companies tighten their approach to new business opting to take a wait-and-see approach while others continued to write business mostly as normal. As the initial hard lockdowns for construction eased and

22

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

contractors continued to operate, most sureties realized that contractors, by and large, were faring quite well. With the continued capital spending at all levels of government combined with assistance for those who were struggling via the Canada Emergency Wage Subsidy, contractors continued to generate profits and backlogs remained relatively strong.

Surety market is soft; hard times to come?

The surety marketplace has been in a soft market now for many years. This means that the surety industry has enjoyed strong profits with manageable levels of claims. This has meant new entrants to the Canadian marketplace and increased competition. To some this might be a surprise, especially given the surety industry in Canada saw its largest loss ever a few years back. The reason it has remained soft is that despite a few large losses isolated to a few sureties, the vast majority have been generating strong results. So, while there have been a few severe losses in the industry, most bond companies have maintained strong profitable results.

In speaking with our contractor clients, many ask if the market could be hardening, what changes could lead us in that direction, and how contractors can prepare. In fact, a few things lead us to believe the market could harden.

The first is interest rates. Companies and individuals have enjoyed record low interest rates for many years. Some would argue that these low rates have kept corporate creative destruction at bay and created the idea of “zombie companies” (i.e., low performing companies that purely survive on the basis of leverage and cheap debt). As we emerge from the pandemic, the concept of inflation is beginning to be discussed.

If inflation were to grow, one of the potential tools to combat this would be raising interest rates. If this were to occur, it could create challenges for contractors that are heavily reliant on debt and lead to more widespread losses for sureties.

The second is capital budgets. Governments have spent significant sums to help individuals and businesses weather the pandemic. In many cases, that intervention has saved people from financial ruin.

However, the level of deficit spending has now reached unprecedented levels.

At some stage, governments will need to

grapple with how they balance budgets and bring debt loads down. They can either raise taxes or reduce spending. If they choose the latter, this could lead to a reduction in capital spending which will reduce contractor backlogs, revenues and profits.

Finally, government support. The time to taper government support is always a complex question. The balance between slowing these supports and ensuring businesses are on a solid footing is a complex one. If these supports are relieved too early, this could present a challenge to contractors especially if paired with reduced capital budgets or a rise in interest rates.

There are a number of key things that contractors can keep in mind given our current turbulent times and also in preparation for a potential hard market.

Reduce overhead. In situations where

a shock to the construction market leads

to widespread reduction in revenues, companies that have remained nimble and can remain profitable despite a reduction in revenue will be the ones that succeed.

Adopting technology to ensure your business is efficient and has the tools to reduce project risk will help reduce overhead and protect gross margins throughout the life of a project.

Evaluate contract risk. Make sure you understand the contracts that you are signing and what those contracts might look like in a different market. Material price escalations are a perfect example.

Are there escalation clauses in your contracts? Are you adding additional margin to protect yourself? Do your prime contract conditions match your sub-trade contracts and are you reviewing the supplementary conditions in detail?

Maintain relationships. Many of you have

advisors like construction lawyers and

accountants, surety brokers and insurance brokers. Make sure that you are speaking to these advisors regularly and drawing on their skills and expertise. They should be able to provide a much broader sense of the industry and will be able to help guide you through challenging times and a potential hard surety market. Openness and transparency with these parties will also build the trust required to navigate a bumpy road.

What we have learned over the past 15 months is that contractors are incredibly resilient. While we are not expecting an imminent ‘hardening’ of the marketplace, it is important to be prepared.

This article was written by Andrew Cartwright, vice-president of surety for FCA Insurance.

Andrew recently joined FCA after a decade long tenure as RVP for a large national surety company. He can be reached at 416-888-3240 and acartwright@fcainsurance.com.

FOR ALL YOUR

ALUMINUM and GLAZING NEEDS

519.650.5433

www.tricountyglass.ca

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

23

FEATURE

ACRONYMS TO LEARN:

FINTRAC, PCMLTFA AND CRM2 We in the investment industry love our acronyms. I have lost count of the number of times I have caught myself and my colleagues slipping into jargon mode.

Unless you’ve been living on the moon, you’re sure to have heard one of these slip from your financial person: ETF (Exchange Traded Fund), OSC (Ontario Securities Commission), RRSP (Registered Retirement Savings Plan), RESP (Registered Education Savings Plan), TFSA (Tax Free Savings Account)— and so on!

To be honest, this whole article could be written with only acronyms and no context. It would also probably be no fun whatsoever to read.

The next entities who adore their acronyms are the government and the regulators. They are the coiners of these acronyms—and many more. If it hasn’t happened yet, and it should have by now, prepare yourself to soon have a meeting with your financial services provider and you will become, whether you like it or not, familiar with a few more that we describe below.

24

under its control. FINTRAC’s compliance program assists and assesses compliance with the Proceeds of Crime (Money Laundering, AML (Anti-Money Laundering) and Terrorist Financing Act (PCMLTFA) and its regulations.

Firms subject to PCMLTFA include accountants, casinos, financial entities, life insurance companies, brokers and agents, and securities dealers. Some of their obligations under the act include: following a compliance program, knowing their clients, reporting transactions, keeping records, and money services business registration. Your PCMLTFA-compliant firm has been effectively deputized to ferret out bad eggs.

CRM2

THE NEW CLIENT RELATIONSHIP MODEL

FINTRAC AND PCMLTFA COMPLIANCE TOOLS

CRM2 stands for Client Relationship Model 2. It goes without saying that many an investor’s statement might as well be hieroglyphics. It’s fine to know what you’ve got, but how did it get there and how much did it cost you to get there?

FINTRAC stands for Financial Transactions and Reports Analysis Centre of Canada. This is Canada’s financial intelligence unit. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information

CRM2 refers to rules for Canadian investment dealers and advisors that require greater transparency about the cost and performance of client accounts. The regulations, which were implemented in mid-2017, were the second stage of a reform of the client relationship model crafted by the Canadian

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

Securities Administrators which is the umbrella organization that harmonizes regulations across Canada’s provinces and territories.

CRM2 is helpful since it improves how financial information is disclosed to investors. A critical part of CRM2 is the placement of an onus on financial services providers to clearly describe investment account performance and provide a clear accounting of fees and such overburdens. Absent these two pieces of information, an investor has no context to evaluate the service they’re receiving, data required to plan for retirement is made vague and a loss of comfort and confidence not knowing if your advisor has properly and prudently assessed your goals and implemented them.

Be careful when using this CRM2 information to shop for your next bargain investment dealer! Within reason you truly get what you pay for.

If you are ill-equipped to manage your own money, recognize the fantasy that the “free” lunch is a fantasy. If it is too good to be true, it probably isn’t true.

THE IMPORTANCE OF PROFESSIONAL, INDEPENDENT INVESTMENT MANAGEMENT A meritorious investment firm will exhibit responsible conduct, transparent and accountable reporting and clear communication. A quality that sets apart a fiduciary from a do-it-yourself investor is their ability to make the tough decisions. While they are responsible for your money, unlike you, they aren’t emotionally attached to it. They’re going to rip off the Band-Aid, tweak and adjust, and keep you in the loop during the entire undertaking.

Get it done right the first time!

The success of your project hinges on robust design and the dependability and accountability of your subcontractors and your crew. Your profitability depends on keeping costs down. Why would you approach your personal investment portfolio any differently?

Integrity is the foundation of The RaeLipskie Partnership and the cornerstone of our relationships with our clients.

For over 30 years we have been providing private wealth management solutions for individuals, corporations and charities. Our portfolios of stocks and bonds are crafted to your specific needs to achieve strength and reinforce your long-term objectives. Please call or visit us online to learn how we can perform for you.

Trust. Experience. Integrity.

An investment firm worth its salt has the credentials and the attention span to never take their eye off your nest egg. This includes maintaining a compliance regimen meant to protect you and to keep themselves in business so they can continue to provide dependable service.

If you haven’t yet been grilled by your investment person for personal information described in the FINTRAC paragraph, you might want to ask them why. If they haven’t disclosed your investment performance and how much you’re paying them in dollars as outlined in CRM2, that is another good question to put out there.

This article was written by Derek Rae, Vice-President & Portfolio Manager with the RaeLipskie Partnership. He can be reached at 519-578-6849 ext. 340.

RAE & LIPSKIE INVESTMENT COUNSEL INC. WATERLOO • BURLINGTON 1 888 578 7542 www.raelipskie.com

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

25

ADVERTISING FEATURE

GVCA Education Course Outline // 2021

EDUCATION 2021

Virtual Instructor-Led Training (VILT) is a live online class that encourages participation. Our instructors have structured these classes to include group discussions, breakout rooms and/or demonstrations.

course outline

In addition to our general course offerings, we offer private corporate training sessions to suit your company’s needs.

Training can be delivered in GVCA classrooms or at a location of your choice*. Employees can also attend training remotely via Virtual Instructor-Led Training.

The Advantages of Private Training: Convenience – Training can be delivered at your place of business, eliminating the need to coordinate travel.

Learning Transfer – Employees are more likely to participate and are often more engaged when training amongst colleagues versus the public.

Efficiency – Private training can be tailored to your company’s specific needs, goals and area of business.

Cost – Customized corporate private training is typically less expensive than public training on a per-employee basis. *Geographical restrictions for on-site courses and minimum class sizes may apply.

View our new comprehensive catalogue of training and professional development courses in our first ever GVCA online and print directory!

26

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

ADVERTISING FEATURE

GVCA Education Course Outline // 2021

What’s New for 2021 Estimation 101 This course provides an overview of the estimating process.

Upon successful completion, you will be able to:

• Identify the various phases of a construction project from inception to commissioning and beyond;

• Detail the components of a construction estimate;

• Identify 6 common types of construction contract arrangements;

• Recall the process of creating and applying various unit rates within a construction estimate as well as the completion and summarization of a construction estimate; and

• Identify 4 common types of construction estimates;

• Identify various methods used for procurement of construction services.

• Describe the role of the estimator in the modern construction industry;

Gold Seal Update As of May 2021, the Canadian Construction Association (CCA) has made changes to the Ethics course, which is mandatory across all designations. There is now ONE consolidated course worth 3 credits. The course can be taken either online or in-class (currently being offered through VILT).

Gold Seal Certification Gold Seal Certification is a nationally recognized standard of excellence established by the Canadian Construction Association. It is earned through industry experience, education and by successfully completing a final exam.

Field Productivity 101 The aim of this course is to provide tools for scheduling at the Site and Crew Level. Project Management and Site Management (Superintendent, General Foreperson and Foreperson) influence millions of dollars of construction each year. They must ensure that all resources are being used efficiently with minimal waste. Yet often, they receive very little in the way of training on how to plan and schedule field activities.

There are six designations:

• Estimator

• Project Manager

• Site Superintendent

• Safety Coordinator

• Owner’s Construction Manager

• Foreperson.

This one-day workshop covers:

• Planning Principles;

• Progressing the Work;

• Network Schedules; • Critical Path;

• Productivity and Performance Factors;

• Gantt (Bar) Charts;

• Look-Ahead Schedules; and

• Manpower Curves;

• Daily Work Plans.

Construction Job Site Management This course focuses on the construction phase of the project. It provides an overview of the site team’s challenges, considerations, duties, and responsibilities from start to project closeout.

This 4-day course will cover:

Field Scheduling 101

• The project stakeholders and their roles;

Contractor success depends heavily on the field production of tradespeople. You will learn how to be more efficient so you can see improvements to your bottom line. This seminar will define Field Productivity, discuss the effects of Field Productivity, and outline approaches to increasing Field Productivity.

• Project delivery systems and contract types;

This one-day workshop covers:

• Job site layout and considerations;

• Introduction to Field Productivity;

• Labour Productivity;

• The Contractor’s Role in Improving Productivity;

• Equipment Productivity;

• The Supervisor’s Role in Improving Field Productivity;

• Quantifying Lost Productivity.

• Factors that Impact Productivity; and

• Field office mobilization and administration; • Construction documents on the job site; • Record keeping at the job site; • Meeting, negotiations, and dispute resolution; • Managing site costs and productivity; • Job site labour relations and control; • Safety and waste management sustainable construction practices; • Changes and claims; and • Project closeout.

REGISTRATION IS REQUIRED for all courses. To register, or to request additional info, c ontact education@gvca.org, call 519-622-4822 x131, or visit www.gvca.org

gvca.org

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

27

ADVERTISING FEATURE

GVCA Education Course Outline // 2021

Growing to Support Skilled Trades Training Conestoga College is committed to training in the skilled trades and supporting employers in their need for skilled workers. As part of this commitment, we are pleased to announce that we will be opening the Conestoga Skilled Trades Campus in September 2022. This new campus, located on Reuter Drive in Cambridge, will consolidate and expand existing programming, raise the profile of the skilled trades, and attract a broader, more diverse population of learners. The first phase will create the largest and most comprehensive trades campus of any college in Ontario, with potential for further expansion. The following programs will be offered at the new campus: Carpentry, Heating, Refrigeration & Air Conditioning, Millwright, Electrical, Plumbing, Electro Mechanical Automation & Maintenance, and Machining. Future phases will allow for the addition of other trades.

Conestoga offers full-time programming and apprenticeship training in the trades mentioned above as well as other trades including Brick and Stone, Power Line, Heavy Equipment Operator, Welding, and Construction Management. We also offer continuing education opportunities in courses such as Gas Technician 2 and 3, and Backflow Certification, and can provide specific corporate training as well.

Our growth can support your growth.

We are here to support the workforce needs of the construction industry whether it’s providing new graduates or training for existing employees. Contact us at trades@ conestogac.on.ca to discuss your training or hiring needs and how Conestoga College can assist you and your company.

WORKING TOGETHER TO DEVELOP A SKILLED WORKFORCE Send your apprentices for training; enhance the skills of existing employees or recruit from our full time programs.

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

❚ APPRENTICESHIP • Brick and Stone Mason • Electrician Construction and Maintenance • General Carpenter • Plumber • Refrigeration and Air Conditioning Systems Mechanic • Residential (Low Rise) Sheet Metal Installer • Roofer ❚ CONTINUING EDUCATION • Backflow Prevention • Gas Technician 2 and 3

www.conestogac.on.ca/trades www.conestogac.on.ca/trades

28

❚ GRADUATE CERTIFICATE • Construction Project Management

trades@conestogac.on.ca

ADVERTISING FEATURE

GVCA Education Course Outline // 2021

Training for Today’s Workforce Training needs to address not only the specific needs of experienced tradespeople, but also those just beginning their careers in the construction trades.

Triston Gagnon, a graduate of the Ropp says the LIUNA Local 1059 Training Centre allows apprentices apprenticeship program, agrees. to learn how to work safely using the “The instructors have so much experience. They teach you tips you latest technology, tools and materials.

“It’s a controlled environment our can’t find in the textbooks to make “Employers know that when they call members can really learn from. You it easier and safer for you and others us to fill a position on a crew, it will be can’t duplicate the job site any closer. around you.” with someone who is highly competent There’s an indoor sandbox to perform and trained with safety in mind,” says Members get a comprehensive level excavations, scaffolding to practice Mike Ropp, Training Director at LIUNA of safety training and certification working at heights, overhead cranes Local 1059 Training Centre in London, Publication: GVCA Journal so Inc they are not only valuable in the Client: LIUNA 1059 Agency: ON Communication and even a sewer and water main Ontario. “That confidence is a Job result Project: Day One: Ready Size: 7.125" x 4.625" Agency Contact: Jen Grozelle labour market, but return home system to learn how to work in Date: to June 2018 Bleed: none Telephone: 519-434-1365 xt 220 of our commitment developing a safely at the end of each work day. confined place Designer: JM Colour: CMYK spaces. It’s a great Email: jen@oncommunication.ca training program focused on results.” to learn the safest way to do the job.”

DAY ONE: JOB-READY Thanks to training programs that are delivered in conditions that replicate the job site and meet the specific needs of today’s employers, LIUNA Local 1059 members are safe, productive workers as soon as they arrive on-site. Each year, experienced trainers at the LIUNA Local 1059 Training Centre and the mobile classroom instruct hundreds of apprentices and journeypersons in more than 15 different sectors and 40 different trades.

We’re committed to delivering well-trained workers because on-the-job training is too late for your business.

For more information, please visit www.liunalocal1059.com

The Union That Works 6657 GB Recruitment Ad-GVCA-FINAL.indd 1

2018-06-18 11:24 AM

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

29

ADVERTISING FEATURE

GVCA Education Course Outline // 2021

Health & Safety In-Class Courses Approved Working at Heights (Full) Approved Working at Heights Refresher Elevated Work Platform

Health and Safety Excellence Program: Five Questions in Five Minutes 1. What are the new features of WSIB’s HSEP? • Rolling enrollment. You no longer have to wait until the end of the calendar year to join; you can sign up at any time!

• I ndividual assessment. Rebates are no longer based on group performance. Work on your time, at your pace. You will not be ‘removed’ from the group if you need to defer topics.

• I ncreased flexibility. Choose 1-5 topics to work on in a 12-month period. These topics can be chosen based on what works best for you and your organization.

• Cheque rebates are quarterly, not annually.

• 36 topics to choose from to optimize your Health & Safety Management System.

2. What are the benefits of joining?

AUG

JUL

• Reduced risk of hazards and a better health and safety culture in your workplace; • Rebates on premiums and money saved by improving your safety experience (Improved Health & Safety has been shown to increase productivity and profitability);

13

Working at Heights (Full)

16

Working at Heights Refresher

30

Working at Heights Refresher

• Recognition to show employees, customers, and investors your commitment to health and safety; and

10

Working at Heights (Full)

• Opportunities to network and share best practices with other like-minded businesses.

13

Working at Heights Refresher

16

Working at Heights Refresher

Our new Online Health & Safety Portal is available on our website.

Go to www.gvcaonlinetraining.ca Courses include: • Forklift Awareness • WHMIS 2015

• Worker Health & Safety Awareness

• Confined Space Entry Awareness

• Risk Assessment and Management

• Lock Out Tag Awareness

• Safety in the Workplace

• Transportation of Dangerous Goods

• Respect in the Workplace

3. How much can I expect for a rebate? $1,000 - $50,000 per topic. There are many variables that impact your rebate amount; for a more accurate estimate please use the WSIB Rebate Calculator online. In 2020, the average rebate for GVCA’s HSEP members was $7,419.00 per firm.

4. How long does it take to implement each topic?

Your program provider will work with you to select topics that are a priority for your business and that balances the amount of work required to implement each one. Some topics may take longer if they are highly customized to your particular needs, or require new structures and processes, such as foundational topics where health and safety is new to a business. Other topics have a more standard approach, such as First Aid which has regulated requirements and may take less time to plan.

• Train the Trainer

5. How do I get started?

• And much more!

Contact Katie Bell at katie@gvca.org or 519-622-4822 x 131.

If you have a need for training, please don’t hesitate to contact education@gvca.org.

We will work with our provider to find a solution that is compliant with all current restrictions, and considerate of the safety of all participants.

30

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

gvca.org

EDUCATION & EVENTS JULY - AUGUST 2021

Our education courses happen in an online forum with Virtual Instructor-Led Training (VILT).

Working at Heights training takes place at the GVCA office, with COVID-19 safety precautions in place. Visit our online calendar at www.gvca.org for times, or give us a call.

Private Corporate Training: We offer private training for your company, which can be customized to your business needs.

EDUCATION • AUGUST

Contact katie@gvca.org for details of both.

6

Managing Change in Construction

6

Trade Contracts: A Double-Edged Sword ace

8

“Building a Better Business” Webinar #3 – How to Talk to Your Bank

13

Project Planning for Success

13

Approved Working at Heights

15

Read the Full Contract - Deep Dive Into CCDC-2

15

“Building a Better Business” Webinar #4 – Give Credit Where Credit is Due

16

Approved Working at Heights Refresher

20

Getting Paid and Managing Cash Flow

20

Microsoft Project for Construction

23

Leadership: Personal Productivity & Time Management (*SELF-PACED)

30

Approved Working at Heights Refresher

ACL Steel Ltd......................................... 10

Knells.........................................................15

4

Managing Change in Construction

Baywood Interiors................................20

Link2Build...............................................32

5

Microsoft Excel for Construction - Advanced

Conestoga College...............................28

LiUNA ......................................................29

10

Approved Working at Heights

Conestoga Roofing...............................13

Madorin Snyder LLP ............................. 9

13

Approved Working at Heights Refresher

Cowan Insurance Group........................ 7

Melloul Blamey........................................ 2

17

Read the Full Contract - Deep Dive Into CCDC-2

Duncan Linton.......................................20

Petrela Winter.........................................13

17

Project Planning for Success

Gallagher................................................... 2

Rae Lipskie..............................................25

18

Getting Paid and Managing Cash Flow

GVCA.......................................................... 7

St. Leonard’s........................................... 10

20

Leadership: Personal Productivity & Time Management (*SELF-PACED)

Intact Insurance......................................17

Strassburger Windows & Doors........16

JDI Cleaning Systems Inc....................31

Tri-County Glass....................................23

27

EVENTS • JULY/AUGUST

EDUCATION • JULY

WSIB Health & Safety Excellence Program: Registration is always open for this incentive program.

JULY 15

LinC Annual Golf Tournament* – Conestoga Golf & Conference Centre

AUGUST 24

GVCA Annual Chair’s Barbecue – Outside at the GVCA Office

UPCOMING EVENTS – MARK YOUR CALENDARS! September 2

WinC Annual Golf Tournament* – Galt Country Club

September 9

GVCA Annual Golf Tournament* – Conestoga Golf & Conference Centre

*Please note that our GVCA Annual Golf Tournament is rescheduled to September 9.

Also, due to the ever-changing COVID-19 safety restrictions mandated by the province and the region, there may be modifications to the structure of our tournaments and the number of players allowed on the course. We continue to monitor the situation.

ADVERTISERS’ INDEX

Approved Working at Heights Refresher

GVCA Journal // VOLUME 10 • ISSUE 4 // JUL-AUG 2021

31

­

­