September October Journal Magazine

VOLUME 10 • ISSUE 5

SEPTEMBER // OCTOBER 2021

THE OFFICIAL PUBLICATION OF THE G RAND VALLEY CONSTRUCTION ASSOCIATION

GVCA

BUYERS GUIDE 2021

THE

PROCUREMENT

ISSUE

In this issue, we look at the latest in procurement trends in our region, including the savings realized by the Region of Waterloo as a result of Bill 66.

We also look at some of the great projects underway locally, including Conestoga College’s Milton Education Village. All this and more inside!

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www.gvca.org • @GVCANews

VOLUME 10 • ISSUE 5 SEPTEMBER - OCTOBER 2021

PROCUREMENT

ISSUE

PUBLISHER Martha George EDITOR James Raiswell

CONTRIBUTORS

Fabiola Alvarez Tushar Anandasagar Ted Dreyer Bill Ferreira Paul Knowles Katherine Salis Sahil Shoor Monica Szabo

PHOTOGRAPHY Lisa Lackenbauer CONTRIBUTOR

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FEATURES

DEPARTMENTS

12 REPORT: REGION OF WATERLOO REALIZED SIGNIFICANT PROCUREMENT BENEFITS FROM BILL 66

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WELCOME

Messages from the Chair and the President

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CRYSTAL BALL REPORT

LAYOUT & DESIGN Janet Day 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.

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©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

15 ION TAKES ANOTHER STEP TOWARDS EXPANSION 16 CONESTOGA KICKS MILTON CAMPUS PLANNING INTO HIGH GEAR 18 POSITIVE SIGNS AHEAD FOR CENTRAL ONTARIO CONSTRUCTION, BUT LABOUR CHALLENGES REMAIN 20 LINK2BUILD PANELISTS DISCUSS MATERIAL PRICE VOLATILITY, SUPPLY-CHAIN CHALLENGES 23 NAVIGATING ONTARIO’S RE-OPENING LAWS 25 INNOVATION CORRIDOR GETS GREEN LIGHT FOR ALL-DAY GO SERVICE 26 GVCA JOURNAL BUYERS GUIDE 2021

Chris Gibson Recreation Centre, Brampton, Woodland Cultural Centre, Brantford and South Common Community Centre and Library, Mississauga

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SIGHTINGS

See who was spotted at the LinC golf tournament

8

SAFETY

How do Procurement and Safety Intersect?

9 FINANCIAL Thinking About Buying or Selling Property?

11 LEGAL Are You Preparing Your “Proper Invoices” Properly?

30 GVCA EVENTS &

EDUCATION CALENDAR 30 ADVERTISERS’ INDEX GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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WELCOME TO JOURNAL A MESSAGE FROM THE CHAIR

LET’S LOOK TO THE FUTURE There’s been a lot of talk lately about a host of new programs created by industry and funded by government that are designed to attract young people into the trades, or which give them the opportunity to learn foundational skills that will hopefully set them on the path to careers in the trades.

The Skills Development Fund is a positive tool the government is using to encourage more young people to seek out work in our industry. It’s laudable, but that program is just one of many tools we as an industry need to consider.

We all make a living in this industry, so let’s help young people understand the opportunities it presents. Talk to your

A MESSAGE FROM THE PRESIDENT

kids and their friends about what you do, and why you chose this industry. Show them how you do your job and why it is important and meaningful work. Help them understand the career opportunities that await them, and what jobs will be there for them in the future.

We all have a role to play in bettering the future of our industry.

Edward (Ted) Dreyer

LET YOUR DINOSAURS DIE If something is dying, let it die. If it is dead, bury it and move on.

Don’t hang on to things that you have done in the past because that’s the way you’ve always done it.

Martha George, GSC

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

make sense? Just because they worked in the past, it doesn’t mean they’re still relevant today. There is nothing wrong with making a change, and even Policies, procedures and projects that if the change doesn’t hit a home run, so don’t produce results are dinosaurs. They should be eliminated before they cost more what? At least you explored, reviewed, reinvented and qualified how you do money, time and productivity. business. Be realistic about your expecWe all have dinosaur mentality at some tations and what you want to achieve, point, but if we recognize these tendencies and work backwards. and adapt, we won’t become extinct. In Be a leader. Take the bold step to quesfact, we will thrive. tion everything. Reinvent the process The business climate has definitely changed, and refine it. What have you got to but there are obvious habits, policies, attilose—besides the dinosaurs in your tudes and people holding us back. organization?

Take a look at how you do business. Do your policies, procedures and rules still

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Woodland Cultural Centre 184 Mohawk Street, Brantford Project details: The federal and provincial governments have announced funding of more than $9.4 million for this project, with a further $378,000 being contributed by the Woodland Cultural Centre.

Chris Gibson Recreation Centre 125 McLaughlin Rd. N., Brampton Project details: An investment of over $25.5 million—including nearly $19 million from the province—will see the expansion of the Chris Gibson Recreation Centre in Brampton.

The project sees the renovation of existing spaces inside the centre to help make it fully accessible, while also creating a full-sized gymnasium, and helping to upkeep the facility’s amenities including an ice rink, pool and racquetball courts.

The project involves restoring the building’s masonry, restoring and replacing more than 100 windows, upgrading the HVAC system, and finishing interior restorations including door frames, flooring, baseboards, and fireplaces.

Improvements also include accessibility upgrades such as the addition of a barrier-free main entrance, an elevator, and accessible pathways around the building.

The work will allow the Woodland Cultural Centre to restore the Mohawk Institute Residential School site, allowing it to open as a national historicalcultural site for public education and healing. The project is scheduled for completion in 2024.

South Common Community Centre and Library | 2233 S. Millway, Mississauga Project details: The province has invested more than $45 million to support

the reconstruction of the South Common Community Centre and Library in Mississauga. The new facility will have expanded indoor and outdoor fitness spaces, an aquatics centre and a new gymnasium. This is in addition to a new 16,000 square-foot library and multi-purpose rooms.

GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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SIGHTINGS

WERE YOU SPOTTED? After a year on hiatus, we were finally able to host our 2021 annual Leaders in Construction (LinC) golf tournament at the Conestoga Golf and Conference Centre on July 15. Close to 70 golfers came out to enjoy the day, and thankfully the rain held off! Here are just some of the photos from our day on the links.

From BFL CANADA Risk & Insurance Services (l to r): Chris Stapylton, Anastasia Edwards, Ciara Shantz and John Lunney.

Hammer Electric’s foursome consisted of (l to r): Kyle Asciukiewicz, Blake Hamilton, Chris Rahim and Brock Hamilton.

Christina RauchfleiszShantz of MelloulBlamey Construction, and Chair of the LinC committee, welcomed golfers before the game began.

Congratulations to the overall winners of the day with a score of 9-under par (l to r): David Eves of Hanson Ready Mix, Joe Taylor of Form and Build Supply, and Jerome Pronesti of Hanson Ready Mix. Absent from the photo was Tim Tjonasan of Hanson Ready Mix.

Ball Construction’s team (l to r): Keegan Crystal, Jordan Brown, Dan Perry and Ethan Ball.

The Melloul-Blamey Construction team (l to r): Abby Hanley, Keegan Saunders, Brady Hall and Julie Reger.

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

How many tees can you stuff into a marshmallow to give it weight to win the Longest Marshmallow Drive contest? It didn’t help the golfer who tried this! The official winner of the GVCA contest – without cheating! – was Stuart Detsky of Trisura Guarantee Insurance Company.

Adam Hunsberger of Madorin, Snyder LLP is a LinC committee member who volunteered with Christina to host the GVCA Longest Marshmallow Drive contest. Here he is joined

by GVCA Chair Ted Dreyer (sort of!), also of Madorin, Snyder LLP, who couldn’t attend in person.

(l to r): Brian Robertson and Jared Harnish of Almita Piling, Stefanie Hargest of Boehmers by Brampton Brick, and Shannon Bell of Savery Bell Masonry.

O’Dell Associates was one of our many sponsors and the company brought their ice trike, filled with refreshments, to the links, along with Marketing Manager Sarah Johnson.

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It was a great day for all – and very exciting to see each other in person again!

GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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SAFETY

HOW DO PROCUREMENT AND SAFETY INTERSECT? I wanted to continue my stream of short articles by focusing on the theme of this month’s Journal.

Procurement is one of topics available to be worked on in the Health and Safety Excellence Program.

A procurement procedure integrated into your health and safety management system is there to ensure that health and safety risks are assessed and controls put in place when you purchase products, equipment, materials or other goods and services that will be brought into your workplace. This also helps to ensure that new hazards are not introduced and any hazards associated with the products, equipment or goods are controlled.

It is important to understand the health and safety risk and apply the correct approach for procurement of goods and services. For example, purchasing paint brushes requires a different approach than sourcing a roofing contractor. Some purchasing requirements can be a bit more complicated because the risk of injury or illness is greater. This needs to be considered when you assess the risk associated with specific purchases.

Depending on the risk, you will need to provide or ask for specific information such as proof of a health and safety program, clearance certificates, health and safety performance and training records, experience with similar work, and other relevant documentation. There are all kinds of legal precedents associated with this that outline your duties as an employer, and reinforces the message that you cannot avoid these duties by contracting them out.

For a procurement health and safety program you need to establish, implement, monitor and maintain the following elements: › i nclude health and safety requirements in purchasing specifications when products, equipment, materials and other goods and services are procured, › s et out the requirements for a pre-start review before first use of new equipment, processes or materials and providing the pre-start review report to the joint health and safety committee or health and safety representative, › i dentify the roles and responsibilities for employees involved in procurement, and › c ommunicate and provide training to those involved in procurement and those who will use the products, equipment, materials and any other goods and services.

For this program to work the procedure or process for determining controls of procured goods and services must follow the same methodology established, implemented, monitored and maintained for recognition of hazards, risk assessment and control of hazards.

Those that provide products, equipment, materials and any other goods or services need to be aware of the requirements prior to submitting for any contracts to ensure you can provide the required information.

This article was written by Monica Szabo, GVCA’s Health and Safety Excellence Program lead. Monica also serves on the board of the Ontario Workplace Health Coalition.

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FINANCIAL

THINKING ABOUT BUYING OR SELLING PROPERTY? It is no secret that the global pandemic has had a profound impact on the residential real estate market in Ontario.

Home and land prices have soared in recent years, exacerbated by the impacts of COVID-19.

During the peak of the pandemic, demand for homes increased so suddenly and rapidly that tactics like holding offers and pricing low to create bidding wars were utilized successfully. It was not

uncommon for homes in the GTA and surrounding areas to sell for well over ask.

The pandemic also brought with it a shift in some of the key elements buyers look

for when considering the purchase of a new home. With the pivot towards online learning and remote work, it may be more important now that a home includes one or more designated work or office spaces.

Outdoor living space has also become more valuable to some buyers given the COVID restrictions that have impeded travel and other leisure activities. With families spending more time at home, patios, balconies, and larger backyards have jumped up on potential homebuyers’ lists of must-haves.

However, we are starting to see some relief from the pandemic with vaccines rolling out and case numbers declining.

Companies are beginning to implement their return-to-office policies and initiatives and the world is beginning to re-open. Although the dust is starting to settle and a return to normal appears on the horizon, it is difficult to predict how this will impact real estate prices going forward.

THE PANDEMIC ALSO BROUGHT WITH IT A SHIFT IN SOME OF THE KEY ELEMENTS BUYERS LOOK FOR WHEN CONSIDERING THE PURCHASE OF A NEW HOME.

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While nobody can predict the future of the real estate market, there are many factors to consider in determining whether it is a good time to buy or sell property.

Interest rates remain at historically low levels given the impact of the pandemic on the Canadian economy. Locking into a mortgage with a low interest rate over a fixed term can lead to significant savings over the life of the mortgage.

However, with the economy recovering, interest rates will inevitably begin to rise in the future. If you lock in at a low rate

WHILE HOME PRICES ARE EXPECTED TO CONTINUE TO RISE, THE CANADIAN REAL ESTATE ASSOCIATION PREDICTS THAT THE NUMBER OF SALES IN 2022 WILL BE SIGNIFICANTLY REDUCED. today, it is important to consider the impact of higher interest rates five years from now on your ability to continue repaying your mortgage.

When it comes to applying for, or renewing, a mortgage in Ontario, new stress test rules came into effect in June that reduce the buying power of most borrowers. The tougher stress test rules

have introduced a new qualifying rate on mortgages where the down payment is 20 percent or more. Previously, buyers had to show that they could afford their mortgage payments if the interest rate were to increase to the higher of either 4.79 percent or two percentage points higher than the rate given to them by their bank. This threshold has now increased from 4.79 percent to 5.25 percent on uninsured mortgages.

proving less successful than they once were during the demand surge.

If you are looking to move up the property ladder, another consideration is the tax implications of the sale of your current property. In Canada, the sale of a principal residence must be reported on the seller’s tax return, but the sale can be exempted from capital gains tax under the Principal Residence Exemption. A property can be considered a principal residence if it was “ordinarily inhabited” by the taxpayer, their spouse, or their children within the calendar year. This can include a home or a cottage, but only one property per year, per family, can be designated as principal residence. There is also a restriction on the size of land that qualifies (roughly 1.2 acres).

The more debt a borrower has when applying for a mortgage, the more their buying power will be hurt by these stress test rules. Repaying car loans, credit card debt, and student loans can help to increase your buying power when it comes to getting into the real estate market or moving up the property ladder.

While home prices are expected to continue to rise, the Canadian Real Estate Association predicts that the number of sales in 2022 will be significantly reduced.

When selling one of multiple properties owned, the taxpayer can designate it as a principal residence for all or part of the years it was owned to best take advantage of the exemption and minimize the amount of capital gains tax paid.

The real estate market in Ontario has already begun to cool off with a slowdown in the number of sales taking place. Some realtors are finding that the aggressive selling tactics used during the peak of the pandemic are

Written by Katherine Salis, CPA, CA of RLB LLP’s Construction Team. Contact her at 519-822-9933 or visit rlb.ca.

Ted Dreyer

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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LEGAL

ARE YOU PREPARING YOUR “PROPER INVOICES” PROPERLY? In any prime contract to which prompt payment applies, the owner has an obligation to pay a “proper invoice” within 28 days in the ordinary course.

To get the benefit of prompt payment, you will need to ensure that your invoices meet all of the requirements of a “proper invoice”.

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THE THREE STEPS TO A PROPER INVOICE STEP 1 is making sure that your invoices

meet the minimum criteria of a “proper invoice” set out in section 6.1 of the Construction Act: • the contractor’s name and address, • t he date of the proper invoice and the period during which the services or materials were supplied, • i nformation identifying the authority, whether in the contract or otherwise, under which the services or materials were supplied, • a description, including quantity where appropriate, of the services or materials that were supplied, • t he amount payable for the services or materials that were supplied, and the payment terms, and • t he name, title, telephone number and mailing address of the person to whom payment is to be sent.

Most invoices that I see already meet most of these criteria, but there are a few nuances that are easy to overlook. Do your invoices set out the period during which the services or materials you are billing were supplied? Do your invoices identify the authority (typically a P.O. number or contract number) pursuant to which your invoices are delivered? Do your invoices set out the correct payment terms (i.e., 28 days)? Do your invoices identify the person to whom payment is to be sent and provide his or her name, title and mailing address?

2

STEP 2 is to meet any contract specific

requirements for a “proper invoice”. The Construction Act allows the parties to expand upon the minimum criteria of a “proper invoice”. Many contracts will likely require statutory declarations, updated WSIB clearance certificates, and invoices for materials supplied, but the list of potential requirements for a “proper invoice” is limited only by the imagination of whoever drafts the prime contract. You should make it part of your practice to review the prime contract for any additional invoicing requirements.

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STEP 3 is making sure that you deliver your invoices in the manner directed by the contract and/or the owner. If the contract does not specify how invoices are to be delivered, then ask the owner for guidance and then follow that guidance.

Lastly, remember that the concept of a “proper invoice” only applies as between an owner and a prime contractor. The act is silent on the form of invoices delivered by a subcontractor to a prime contractor.

AN IMPROPER INVOICE IS THE LAST REFUGE OF A SCOUNDREL Sooner or later some owner will refuse to pay one of your invoices even when they have failed to deliver a notice of non-payment within 14 days as required by the act.

Their only defence will be to allege that the invoice that you delivered was not a “proper invoice” that triggered the running of the 28-day period to make payment.

If they succeed with that argument, then you will only have yourself to blame.

Ted Dreyer is a lawyer and adjudicator at Madorin, Snyder LLP in Kitchener. This article should not be relied on as legal advice.

GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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FEATURE

REPORT:

REGION OF WATERLOO REALIZED SIGNIFICANT PROCUREMENT BENEFITS FROM BILL 66

The region’s decision to end its signatory agreement with the Carpenters union as a result of the passage of Bill 66 has led to money savings and more bidders per tender, a new report from Cardus finds.

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THE KEY FINDING FROM THE REPORT SUGGESTS THAT THE REGION SAVED AT LEAST 14 PERCENT—AN ESTIMATED $24 MILLION—IN MUNICIPAL CONSTRUCTION COSTS SINCE IT RE-OPENED ITS TENDERING PRACTICES. A new report prepared by think tank Cardus suggests that the Region of Waterloo has realized a number of important benefits as a result of reopening its procurement processes following the passing of Ontario’s Bill 66.

The report, Bouncing Back Through Diversity: The Effects of Bill 66 on Construction Competition in the Region of Waterloo, fills in the picture of what happened in the Region of Waterloo since July 2019, following the passage of Bill 66 in the Ontario legislature. The bill redefined municipalities in a way that allowed them to return to open and competitive bidding for public projects, opening them to all qualified firms, regardless of the affiliations of their workers. Previous practices had disqualified 93 percent

of potential contractors in the Region, leaving work in the hands of a very small pool of bidders.

The report looked at data from 22 projects tendered between 2014 and 2017, during which the Region was certified as a “construction employer” for the industrial, commercial and institutional sector and became a signatory to the provincial collective agreement of the Carpenters’ union. It compared those tender findings to 26 projects tendered between 2019 and 2021 when the Region tendered under a fully competitive regime after the passage of Bill 66.

The key finding from the report suggests that the Region saved at least 14 percent—an estimated $24 million—in municipal construction costs since it

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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along with several other smaller jobs,” said Brian Dijkema, vice-president of external affairs at Cardus and the author of the report. “We’ve seen similar results in Hamilton and Sault Ste. Marie, which also adopted fair and open contract bidding on their infrastructure projects.

Among Ontario cities, Toronto is the outlier in continuing to restrict bids to a small group of contractors, forcing residents to pay more while getting less.”

re-opened its tendering practices. At the same time, it saw an increase of 50 percent in the average number of bidders per tender—from 3.68 bids per project among the 22 projects tendered during the signatory period to 5.54 bids per project for the 26 projects tendered during the post-Bill 66 period.

Additionally, during the signatory period, the Region saw eight of its 22 projects receive either only one or two compliant bidding firms, while four of its 26 projects tendered during the post-signatory period received only one or two bids. The highest number of bidders on any single project during the signatory period was eight, while in the post-signatory period, the figure increased to 22.

Curiously, in most tenders issued after the signatory period, firms signatory to the Carpenters’ union were absent from the bidding. Of the 26 projects in that time period, 21 had zero bids from Carpenters-affiliated firms.

Waterloo Region isn’t the only municipality to report procurement benefits resulting from Bill 66. The City of Hamilton, which also moved to a competitive tendering process as a result of Bill 66,

“The estimated $24 million in savings is equal to the combined cost of the Galt Wastewater Treatment Plant upgrades

issued a report in 2019 that led to almost identical conclusions. It found price savings in the range of 9 to 32 percent, with an average savings of 21 percent. City staff also noted that “broader procurement opportunities will result in expanded access to the City’s construction procurement” among a greater diversity of bidders. Further, they noted that open tendering will enable them to better follow their own policies on equitable treatment of vendors.

“The overarching message coming out of our report is that there is no compelling evidence to support closed tendering practices among municipal authorities,” said Cardus executive vice-president Ray Pennings.

The question remains: in the face of such obvious procurement benefits, why have municipalities such as Toronto not opted out of their signatory agreements?

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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FEATURE

ION TAKES ANOTHER

STEP TOWARDS EXPANSION

The Region of Waterloo announced that the provincial government had approved its Transit Project Assessment for the line extension.

The decision means the region can start seeking out funding from senior levels of government for the line extension to Cambridge.

Stage 2 of Waterloo Region’s ION light rail project took another step toward reality on June 21.

The region announced that the Ontario government had approved its Transit Project Assessment for the line extension.

The move means that the region can now begin the process of seeking funding from the provincial and federal governments to advance the project towards construction.

“We’re thrilled to be able to proceed with delivering Stage 2 of ION light rail transit to residents in Waterloo Region,” said Regional Chair Karen Redman. “Stage 1 has been an incredible success getting people to where they need to go in a fast, reliable and affordable way. We’re committed to providing this much-needed service to community members in Cambridge.”

Stage 2 ION will see ION bus service replaced by LRT, creating a continuous LRT system across the region’s three urban centres through 18 kilometers of light rail and eight stations ending at the future light rail station in downtown Cambridge.

The extension will nearly double the number of kilometres on the line.

When approving LRT in 2011, the Stage 2 ION route and stop locations between Cambridge and Kitchener were endorsed by

Regional Council. The full preferred route for Stage 2 ION was endorsed by council in June 2019.

Stage 1 of the ION line opened exactly two years to the day before this most recent Stage 2 announcement—on June 21, 2019. Since then, millions of rides have taken place along 19 kilometers of light rail and 19 stations between Conestoga Station in Waterloo to Fairway Station in Kitchener.

“The City of Cambridge is excited about this milestone that brings us closer to seeing rapid transit in our community,” said Cambridge mayor Kathryn McGarry. “ION will give Cambridge residents a convenient and sustainable alternative to travelling by car and move people seamlessly not only between the other two urban centres, but to the many businesses and amenities within our own community. When finished, ION will help create an even more connected and inclusive Waterloo Region.”

THE CITY OF CAMBRIDGE IS EXCITED ABOUT THIS MILESTONE THAT BRINGS US CLOSER TO SEEING RAPID TRANSIT IN OUR COMMUNITY / KATHRYN MCGARRY By 2051, Waterloo Region’s population is expected to reach more than 900,000 residents.

Along with providing a safe mode of transportation, light rail has also fostered local economic development. The region says the line has helped create more than $3.5 billion worth of investment in the central transit corridor.

“Stage 1 saw clear economic benefits and investment along the ION corridor,” said Greg Durocher, President and CEO of the Cambridge Chamber of Commerce. “We’re excited to be one step closer to seeing these same economic benefits in Cambridge.”

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FEATURE

CONESTOGA KICKS MILTON CAMPUS PLANNING INTO HIGH GEAR When it comes to Conestoga College establishing a campus in Milton, Ontario, everything old is new again – or, almost everything.

By Paul Knowles

The plan to build a new campus – the Milton Education Village –goes back more than a decade. Conestoga has been working in partnership with Wilfrid Laurier University and the town of Milton to plan for this extensive project. In April of 2018, the government of Ontario announced $90 million in funding for the new development, including a satellite Conestoga campus.

However, only six months later, the newly elected provincial Progressive Conservative government withdrew the funding, and hope for the project dwindled.

That changed in June of this year, when

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

Ontario Premier Doug Ford announced that the province will, in fact, support the creation of new Conestoga and Laurier campuses in Milton, along with a new Schlegel Villages long-term care home in Milton – a facility that will also partner with Conestoga’s health care programs.

campus. Reitsma says funding will come from the same resources that have underpinned several other Conestoga projects in recent years, including the John W. Tibbits campus in Waterloo, and the new 250,000-square feet Skilled Trades campus on Reuter Drive in Cambridge.

However, says Conestoga VP of Finance and Corporate Services Jacinda Reitsma, the announcement does not include any commitment to capital funding. The $90-million pledge has not reappeared.

But that does not mean the projects will not go ahead; in fact, Conestoga is committed to development of its Milton

Reitsma says that while the recent provincial announcement does not include capital funding, it does confirm an essential commitment – that Conestoga College (as well as Wilfrid Laurier) have approval to establish satellites in Milton.

That is the key. As well, she noted, there will eventually be operational funding

divided between Laurier and Conestoga, along with additional lands to be acquired. The Schlegel Village will be on a separate piece of land, and Reitsma anticipates that Conestoga will be acquiring additional property for the campus, all within the Milton Education Village that is expected to cover about 400 acres.

Reitsma stresses that it less than two months since the latest provincial announcement, and that there are many questions left unanswered about the project. For instance, building plans are still in the early stages of development at this point, although it is expected that Conestoga will be constructing a significantly large, multi-storey building as its main campus facility. How many storeys, and how large is not yet known. She says, “We have a few different options” concerning size of buildings and the order in which they will be constructed.

But in the big picture, she added, “If we reach the goal we want to, it could be a very large project… a big campus… a major initiative.” She says that the project will certainly be “good news” for the construction industry in the area.

from the province, when the programs are underway. Those programs could involve up to 10,000 students.

Capital funding is not an insurmountable challenge, because Conestoga is in a solid financial position, with significant surpluses; funding for the new campus is not a concern “in the long term,” she said.

Reitsma doesn’t rule out the idea of a fundraising campaign, but that decision is yet to be made.

The campuses will be located on 150 acres of land, including a significant amount of conservation lands, originally donated by the town to Laurier in 2008, and now

Conestoga College President John Tibbits – who has seen the College and its programs grow exponentially in his 34-year tenure as head of the institution – is excited about this latest development.

“The new Conestoga-Milton campus will deliver relevant, accessible, career-focused programming that will address local workforce needs, contribute to personal and professional success, and support the well-being and prosperity of the region into the future,” he said.

Reitsma is also excited, but stresses that the new campus is still a work-in-progress – and one in its very early stages. The announcement “doesn’t mean there is a shovel going into the ground the very next day,” she says. It is anticipated that the three partnering entities – Laurier, Schlegel and Conestoga – will see construction underway within three or four years. But there are approvals and plan details to

negotiate before any construction can begin. Nonetheless, she says, “We are very committed to make this happen.”

However, Reitsma also notes, “We’re also still in the midst of a pandemic.”

The Milton campus will initially focus on three key program areas – health care, business and IT. In the health care field, Conestoga will work in collaboration with Schlegel Villages to create a living classroom within the planned long-term care facility to support the education and training of personal support workers, registered practical nurses and other health care professionals and build the seniors care workforce – clearly, postpandemic, a high priority emphasis.

Reitsma notes, “There will be other program areas as well.”

The VP says that one factor influencing the continual growth at Conestoga is an ever-increasing number of international students seeking to study at the college.

She says that there will be little or no transfer of students or programs from other Conestoga campuses. “The plan is for this to be all additional, not to move programs or cohorts.”

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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FEATURE

POSITIVE SIGNS AHEAD FOR CENTRAL ONTARIO CONSTRUCTION, BUT LABOUR CHALLENGES REMAIN The world turned upside down at the start of 2020. What looked like another promising decade of economic growth for Canada was quickly dampened by the spread of the COVID-19 virus around the globe.

By Bill Ferreira, Executive Director, BuildForce Canada

As governments in Canada scrambled to put in place measures to allow essential businesses to continue to operate, the vast majority of Canadians transitioned to at-home employment.

Now, nearly 18 months on, real gross domestic product has been slowly recovering from its catastrophic drop in April 2020, when GDP levels declined by nearly 18% from February 2020 levels.

With one of the highest rates of vaccinations in the world, the Canadian economy is poised to continue to perform well throughout much of 2021. Assuming no further lockdowns are necessary, real GDP and employment should return to pre-pandemic levels by the end of the year.

What impact, however, the work-fromhome culture will have on the economy and the future development of our cities remains unknown.

The shift from the traditional office workplace to a work-from-home model could have significant implications for city

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planners. As the industry most directly impacted by these shifts, the construction sector will be significantly impacted by cities’ responses to the post-pandemic landscape. New builds could be limited, but the repurposing of many downtown buildings into residences or the reconfiguration of existing office space to adapt to the workplace of tomorrow holds considerable promise.

Kitchener-Cambridge-Waterloo market driven by residential sector

In Kitchener-Cambridge-Waterloo, the residential sector continues to account for the vast majority of the construction taking place. Through June 2021, the value of residential-sector permits issued amounts to $708 million, with single-dwelling permits accounting for approximately $326 million and multi-dwelling permits valued at $382 million. By contrast, the total value of non-residential permits issued over the same period accounted for just $335 million.

A deeper look into the non-residential market shows that since January 2021, the total value of permits for new construction was $110 million, whereas permits for improvements were $225 million. Institutional construction accounted for the vast majority of construction, with $140 million in permits issued to June. Commercial permits accounted for permits valued at just over $124 million. Industrial construction, the smallest of the three categories, accounted for only $70 million in permits.

Most of the institutional investment was invested in improvements to existing buildings, whereas within the commercial sector, investments in new buildings and improvements were roughly equal. Industrial permits were split roughly two-thirds supporting new builds and only one-third for improvements.

Compared to the same period in 2019, total non-residential permits are up by 10% over pre-pandemic levels. This figure may, however, be misleading. Industrial permits are slightly below 2019 levels, however, commercial permits are down by 33%, whereas institutional permits are up 187% for the period. This dramatic rise in institutional permits is mostly driven by improvements to existing facilities rather than new construction.

It is unclear if these trends are reflective

of the anticipated changes to the ICI market brought on by the COVID pandemic or if it’s just part of the cyclicality of markets, but if the slew of economic oracles forecasting a sea change in the world of work turn out to be accurate, this could be a sign of things to come.

of 21%, and significantly lower than the 23% rate for the Greater Toronto Area.

While the region is expected to take in more individuals than those lost to retirement during this period, demand growth in Central Ontario should still leave the region short some 5,090 workers by 2030.

Labour supply remains stressed

One thing, however, that likely will persist for some time to come is tight labour markets in Ontario. With all regions of the province experiencing skilled labour shortages, the ability for employers to draw labour in from neighbouring regions remains limited.

Kitchener-Cambridge-Waterloo falls into BuildForce’s Central Ontario construction region. We estimate that approximately 18% of the region’s 2020 labour force will retire by 2030. That’s slightly lower than the provincial average

Current industry and federal and provincial government efforts to increase apprenticeship development should help.

The industry continues to aggressively promote career opportunities for youth and to youth in groups that have been traditionally underrepresented in the construction labour force. The provincial government has launched a number of online promotional initiatives, as well as new incentives for employers to make apprenticeship development more attractive to smaller construction employers. The federal government

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GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

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FEATURE

LINK2BUILD PANELISTS DISCUSS

MATERIAL PRICE VOLATILITY, SUPPLY-CHAIN CHALLENGES At a special Link2Build webinar on June 10, more than 300 participants heard firsthand from four panelists about their experiences with supply chain disruptions and material price increases, and their responses to each.

Challenges associated with the COVID-19 pandemic, including changing consumer behaviours, as well as natural disasters across the United States and Canada, have combined to create supply chain havoc—and material price increases—across North America’s construction markets.

At a special Link2Build webinar on June 10, more than 300 participants heard firsthand from four panelists about their experiences with supply chain disruptions and material price increases, and their responses to each.

Moderator Martha George of the Grand Valley Construction Association opened the session by asking the panelists to speak a bit about their experiences with shortages and associated price increases of specific materials, and offer their ideas about why these issues were occurring.

First to speak was Wayne Ferguson, EllisDon’s senior vice-president for Eastern Ontario and Quebec. His division manages about $400 million worth of construction annually. Ferguson said that his company is seeing delivery challenges of major products such as steel and wood, as well as underground PVC piping, Roxul insulation and drywall. He pointed to COVID as a major cause of slowdowns in manufacturing facilities, as well as the effects of the winter deep freeze in Texas, which has played havoc with the manufacturing of

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resin-based products. The longshoremen strike in Montreal’s port further delayed material shipments to other parts of the country.

JC Leblanc, business development with Canam-Buildings, which is North America’s largest steel fabricator, spoke about the extent to which the demand—and price—for steel has skyrocketed since the pandemic began.

“In November 2020, we were pricing steel projects at between $600 and $700 US per metric tonne. Now, the price is up to between $1,600 and $1,800 per metric tonne,” he said. “The biggest reason for the increase is demand. COVID changed consumers’ shopping patterns. People are buying online more than ever before, which is causing major retailers like Amazon, Costco and Walmart to build massive distribution centres to keep up with demand.”

Leblanc said those handful of major companies are buying the majority of Canam’s steel, which leaves everyone else fighting for what little product remains.

Curtis Boyce, director of operations with Modern Niagara Group, says he has seen the price for piping rise between 100 percent and 200 percent in the past year—largely due to the supply of resin products and the disaster in Texas last spring. Materials that the company normally depends on from overseas suppliers are also being delayed due to global shipping logistics such as sea container shortages.

“Normally we see one or two price increases per year in the materials we buy wholesale, now we see increases weekly, and on very short notice,” he said. “We’re doing our best to stay informed, and we’re sharing information with our clients as soon as we get it so we can make the best-informed decisions for our projects.”

Fred Janzen, the director of capital projects at Western University, said price and supply issues such as these have changed the way the university operates with its construction partners on its projects. In a typical year, the university tenders as many as 300 projects—10 to 12 of which are considered major projects. And while the lack of students on campus has made construction easier in some respects, the price and supply issues are forcing the university to look at its project budgets differently, to allow greater project contingencies, and to consult with its partners routinely to solve unexpected challenges.

PEOPLE ARE BUYING ONLINE MORE THAN EVER BEFORE, WHICH IS CAUSING MAJOR RETAILERS LIKE AMAZON, COSTCO AND WALMART TO BUILD MASSIVE DISTRIBUTION CENTRES TO KEEP UP WITH DEMAND. / JC Leblanc

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George asked how each party is handling these supply and pricing issues.

order what we need when we need it. The longer we wait, the more risk we assume.”

“Collaboration is key,” said Ferguson. “We’re doing everything we can to keep everyone up to speed as things change, and we’re trying to buy materials in advance and store them on site as much as possible to insulate from further price increases. But that’s not always possible. There’s no one-size-fits-all solution for every project.”

Boyce echoed that comment, adding that creativity in options, solutions and materials, is critical. Ferguson also added that it’s key to be flexible with clients so they understand the situation and can make educated decisions.

Ferguson added that bid-validity periods are becoming a hot topic.

Asking a general contractor to carry a validity period of 60 or even 90 days in this current environment is very challenging, he said.

EllisDon has had some success introducing price-escalation clauses into its bids, but when the company is asked to carry pricing risk, it’s forced to guess at the size of the contingency it should add to its bid, which can be risky for the contractor and expensive for the owner.

Boyce said that through consultations with his suppliers, he expects the disruptions and increases to continue through the remainder of the year at least. Ferguson said he expects much the same thing, especially in the National Capital Region, given how hot Ottawa’s construction market is at the moment. He added he’s seeing wood futures coming down, but any de-escalation won’t be quick.

Leblanc says Canam is pre-ordering product as much as it possibly can, but even that solution is imperfect since it depends on a project’s final design being completed.

Boyce also said that Modern Niagara is doing as much as it can to make bulk orders in advance to mitigate schedule and price impacts, but that involves finding appropriate lay-down spaces for storage.

“What are some best practices you would pass on to help others manage similar challenges?” George asked.

Janzen’s message to buyers was to be nimble, and think of new and better ways to build the same project. His university for example, is looking at concrete-framed buildings as an alternative to steel or wood. It’s not what the university would normally choose, but today’s environment is far from normal.

Leblanc explained that working with the customer is key.

“We’re not selling a widget that comes off the shelf,” he said.

“We’re selling a process that can take months or even years to complete. We’re trying to be as frank with our clients as possible.

Get your process in order and your ducks in a row so that we can

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Finally, George asked how the panelists see these challenges evolving over the course of the remainder of 2021 and into 2022.

Leblanc also said he sees no signs of slowdowns on the horizon.

Canam has never been so busy and is booking work into late 2022 at the earliest now. He even suggested that the post-COVID recovery could be on par with the global construction boom seen immediately after the Second World War. A complete recording of this session can be found in the Resources page of Link2Build.ca.

FEATURE

NAVIGATING ONTARIO’S RE-OPENING LAWS Construction employers are required by law to take every precaution reasonable in the circumstances to keep their workplaces safe.

By: Sahil Shoor, Tushar Anandasagar and Fabiola Alvarez

Below are key considerations and risk mitigation strategies available to construction employers as they navigate Ontario’s new requirements for re-opening.

REINTEGRATION OF OFFICE 1 AND ADMIN STAFF The province recently eliminated the mandatory remote work requirement that restricted certain employees (including office staff) from attending at the physical workplace. Construction employers should inquire as to whether their offices qualify for re-opening without capacity restrictions.

HEALTH AND SAFETY REMAINS 2 A TOP PRIORITY A Before reintegrating workers, each construction employer must develop and maintain a compliant COVID-19 Workplace Safety Plan. The plan must consider, at a minimum:

• current and key sources of information, including compliance with any

sector-specific guidelines relevant to the business’s workplace; •C OVID-19 risks, including information on how the virus spreads, key factors for transmission, and how the virus affects vulnerable populations; • c ontrols in place that will reduce COVID-19 risks, including information regarding screening, physical distancing/ barriers, frequent disinfection, source control masking, PPE requirements, etc.; and • i nfection prevention and control protocols (e.g., enhanced cleaning and sanitation schedules, isolation areas, etc.)

B All persons must be actively screened before or at the time they arrive at the workplace. Screening must be done using the questions contained within the province’s COVID-19 Worker and Employee Screening Tool. Active screening requires verification, which can be completed in-person or digitally. Posting signage that says “do not enter if you have these symptoms…” is recommended, but won’t satisfy the active screening requirement.

C Physical distance of two metres or six feet should be maintained at all times.

D Mandatory face covering requirements must be met. Cloth masks are only compliant if physical distance can be maintained at all times. Otherwise, workers need to wear compliant ASTM medical/surgical grade masks. Eye protection is required if a worker must interact with someone who is not wearing a mask, cannot maintain physical distance, and is not separated by an impermeable barrier.

Narrow exceptions apply during breaks.

E Each construction employer must post required signage to comply with provincial regulations and municipal by-laws.

WORKPLACE VACCINATION 3 POLICIES At present, Ontario law does not state that a construction employer can require workers to be vaccinated. Because of this uncertainty, many employers are incentivizing rather than mandating vaccination.

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RAPID (ANTIGEN) SCREENING 4 Rapid screening can detect and prevent asymptomatic persons from entering a construction employer’s workplace.

Rapid screening kits are widely available throughout the province. If rapid screening is implemented by a construction employer without public health’s involvement, the company bears full

liability and operational responsibility for ensuring compliance with applicable health protection and privacy laws. The current guidelines for private sector rapid screening require, at a minimum: • Prior to initial screening, the business must notify their local health unit that the business will be engaging in private rapid testing.

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• All tests must be performed using one of the types of tests currently authorized and available in Ontario.

• All tests must be performed using the current provincial guidelines for antigen point-of-care testing.

• The business must have a systematic procedure in place to follow up on test results.

A recent decision of an Ontario arbitrator in LIUNA Local 183 v EllisDon Construction Ltd, 2021 establishes that, in appropriate circumstances, a construction employer can require all workers and essential visitors attending at a job site to submit to rapid screening. In this case, the arbitrator held that rapid screening was not an invasion of privacy, and was “reasonable” when considering the risks to health and wellbeing posed by COVID-19.

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The Ministry of Labour, local by-law enforcement and local public health units are increasingly enforcing mandatory health protection and infection prevention and control protocols.

Because compliance requirements in the context of the COVID-19 pandemic are consistently changing, construction employers are strongly encouraged to seek legal advice with respect to any matters relating to re-opening their workplaces.

For any questions you may have about Ontario’s re-opening laws, or any other issues related to Construction and Occupational Health & Safety law, our Infrastructure and Construction, and Employment Labour & Equalities Groups would be pleased to assist.

FEATURE

INNOVATION CORRIDOR GETS

GREEN LIGHT FOR ALL-DAY GO SERVICE The province has given the green light for two-way, all-day GO train service to operate along the Innovation Corridor between Toronto and Kitchener.

The latest development in the issue sees an RFQ issued to bolster track infrastructure along the line.

All-day, two-way GO Train service between Kitchener and Toronto got a major shot in the arm in April with two key developments.

The province and Metrolinx released a preliminary design business case for the project that confirms the value of the service and highlights its benefits. The organizations also released a request for qualifications (RFQ) to add new station platforms and make track upgrades to ensure infrastructure is in place to support the service.

“Our government is taking action to deliver significant advancements to GO service between Toronto and Kitchener that will bring more trips at every point along the line,” said Transportation Minister Caroline Mulroney.

“This project will help build fast, frequent and reliable transit that will better support families and businesses along the entire corridor.”

THIS PROJECT WILL HELP BUILD FAST, FREQUENT AND RELIABLE TRANSIT THAT WILL BETTER SUPPORT FAMILIES AND BUSINESSES ALONG THE ENTIRE CORRIDOR / CAROLINE MULRONEY The preliminary design business case highlights a number of benefits of the expanded service, including travel time savings of as much as 20 minutes for riders traveling between the Kitchener GO station and Toronto’s Union Station, and train service every 15 minutes on core segments.

The Kitchener line is projected to have 39,000 jobs and an estimated 54,000 residents living within approximately 10 minutes’ walk away from a station with two-way, all-day service. By 2041, the service is forecasted to attract between 10.9 million to 11 million annual boardings, and reduce annual vehicle kilometres travelled by 16.2 million kilometres.

The Kitchener line is the backbone of the Toronto-Waterloo Innovation corridor, a stretch of the province that is home to more than six million people, and generates 17 percent of the country’s GDP. Waterloo’s already-powerful base of technology companies could strengthen even further with regular, reliable, every-day commuter train service between the cities. So too could businesses located in other cities along the line, including Mississauga, Brampton and Georgetown.

“We are making great headway in our long-standing goal to better connect the thriving businesses and residential communities between Kitchener-Waterloo and Toronto,” said Kinga Surma, who at the time was serving as the Associate Minister of Transportation (GTA). “By building this major transit project, our government is increasing the reliability of transit, reducing congestion and commute times while also supporting the growth of communities.”

A Connect the Corridor movement launched in 2018 with the goal of realizing GO train service between the cities. Supporters of the movement hailed the announcement.

Waterloo Region chair Karen Redman called the announcement, “a vote of confidence in the people of Waterloo Region” while Ian McLean of the Greater Kitchener Waterloo

Chamber of Commerce called it a “game changer.”

Shakiba Shayani, president and CEO of the Guelph Chamber of Commerce, said the announcement is a huge win for the Guelph business community.

“This investment will unleash and attract diverse and cutting-edge talent, increase employee retention, and will boost the economic climate for business competitiveness,” said Shayani. “I’m looking forward to this work that will improve the movement of people across the region, contribute to economic prosperity and solidify the important position Guelph holds along the Innovation Corridor.”

In addition to releasing the preliminary design business case, Metrolinx also issued an RFQ to move ahead with procurement for improved infrastructure between Georgetown and Kitchener.

The RFQ package calls for infrastructure improvements at Acton GO Station and Guelph Central Station that will help enable two-way train service, new maintenance of tracks, and other track upgrades that will allow for higher train speeds. Funding for that work was announced in the province’s March budget.

The province has also recently completed significant work on the Kitchener GO Rail line with the complete excavation of the twin tunnels under Highways 401 and 409 to increase train capacity on the corridor.

It continues to work closely with CN Rail to increase GO Train service for two-way, all-day service.

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EDUCATION & EVENTS SEPTEMBER - OCTOBER 2021

Our education courses occur 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.

WSIB Health & Safety Excellence Program: Registration is always open for this incentive program. Earn $ in rebates!

Complete Course Catalogue: This comprehensive guide lists the courses, including descriptions, that GVCA offers. It can be viewed online at www.gvca.org. Hard copies are also available.

Private Corporate Training: We offer private training that can be customized to suit your business needs.

EVENTS

1&8

Excel BASIC for Construction

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Earned Value Management for Construction

14

Approved Working at Heights

14 & 15

Bluebeam Revu: Basics

14, 16, 21 & 23

MS Project for Construction

15

Creating a Risk Management Plan for Construction

15 & 16

Trade Contracts: A Double Edged Sword

16

Getting Paid and Managing Cash Flow

16

Effective Planning for Forepersons & Crew

16 & 17

Bluebeam Revu: Estimating

17

Approved Working at Heights Refresher

21, 22 & 23

Responding to a Request for Proposal

22 & 29

5

Managing Change in Construction

5&7

MS Project for Construction

6&7

Trade Contracts: A Double Edged Sword

6 & 13

Excel ADVANCED for Construction

7

Earned Value Management for Construction

7

Effective Planning for Forepersons & Crew

12

Approved Working at Heights

12 & 13

Project Planning for Success

15

Approved Working at Heights Refresher

19

Getting Paid and Managing Cash Flow

19 & 20

Bluebeam Revu: Basics

20 & 21

Closeout of a Construction Project

20 & 27

Excel BASIC for Construction

Excel BASIC for Construction

21 & 22

Bluebeam Revu: Estimating

28, 30

MS Project for Construction

29

Field Scheduling 101

21, 22, 28 & 29

Basics of Building Construction

30

Approved Working at Heights Refresher

25, 26 & 27

Responding to a Request for Proposal

SEPTEMBER

WinC Annual Golf Tournament – Galt Country Club

28

Field Scheduling 101

28

Effective Planning for Forepersons & Crew

29

Approved Working at Heights Refresher

2 SEPTEMBER

9

GVCA Annual Golf Tournament – Conestoga Golf & Conference Centre

CJ’s Express............................ 27, 28

Gowling WLG................................29

Ontario Bollards....................24, 26

Conestoga Roofing......................17

GVCA................................................19

St. Leonard’s.................................. 27

5 Star Paving.................................29

Cowan Insurance Group.........7, 27

JDI Cleaning Systems Inc..........22

Stecho..............................................19

ACL Steel Ltd.................................14

Cushman & Wakefield.................. 2

Knapp Fasteners..........................26

Baywood Interiors.......................22

Delta Elevator................................14

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

Strassburger Windows & Doors...........................................29

BFD Rona Building Centre..............................................27

Duncan Linton...............................13

LiUNA ..............................................31

Form and Build.............................27

Madorin Snyder LLP ........... 10, 29

ADVERTISERS’ INDEX

30

EDUCATION • OCTOBER

EDUCATION • SEPTEMBER

Contact katie@gvca.org for more information.

GVCA Journal // VOLUME 10 • ISSUE 5 // SEPT- OCT 2021

Tri-County Glass............................. 2

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