November 2016 Landscape Trades

November 2016 VOL. 38, NO. 9

landscapetrades.com

Ten performance indicators to benchmark 2016

Cash

Supreme Court rules on consequential loss Sincere community leadership is Bob Allen’s style

PM40013519

Plan to prevent the dry spells; Nathan Helder shares strategies

WELCOME TO THE FAMILY

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Contents

NOVEMBER 2016 VOL. 38, NO. 9

EDITOR AND PUBLISHER Lee Ann Knudsen CLM | lak@landscapeontario.com

ASSISTANT EDITOR Scott Barber | sbarber@landscapeontario.com ART DIRECTOR Kim Burton | kburton@landscapeontario.com LANDSCAPE ONTARIO MAGAZINE EDITOR Robert Ellidge | rob@landscapeontario.com GRAPHIC DESIGNER Mike Wasilewski | mikew@landscapeontario.com ACCOUNTANT Joe Sabatino | joesabatino@landscapeontario.com SALES MANAGER, PUBLICATIONS Steve Moyer | stevemoyer@landscapeontario.com INTEGRATED SOLUTIONS REPRESENTATIVE Greg Sumsion | gsumsion@landscapeontario.com COMMUNICATIONS COORDINATOR Angela Lindsay | alindsay@landscapeontario.com ADVISORY COMMITTEE Gerald Boot CLM, Laura Catalano, Mark Fisher, Hank Gelderman CHT, Marty Lamers, Jan Laurin, Bob Tubby CLM, Nick Winkelmolen, Dave Wright Landscape Trades is published by Landscape Ontario Horticultural Trades Association 7856 Fifth Line South, Milton, ON L9T 2X8 Phone: (905)875-1805 Email: comments@landscapetrades.com Fax: (905)875-0183 Web site: www.landscapetrades.com LANDSCAPE ONTARIO STAFF Darryl Bond, Amy Buchanan, Myscha Burton, Rachel Cerelli, Tony DiGiovanni CHT, Denis Flanagan CLD, J. Alex Gibson, Jeff Hicks, Heather MacRae, Kristen McIntyre CHT, Kathy McLean, Linda Nodello, Kathleen Pugliese, Ian Service, Tom Somerville, Martha Walsh, Cassandra Wiesner

Business management focus 2016

MASTERING CASH FLOW Balance payables and receivables to keep your company on an even keel; Tips and strategies from contractor and consultant Nathan Helder. Page 6

BY LEE ANN KNUDSEN

COLUMNS 12 Management solutions

Look back at Key Performance Indicators to improve 2017 results.

BY MARK BRADLEY

16 Road to success

Time-tested advice works for sales, customer service or even landscape design — keep it simple.

BY ROD McDONALD

22 Legal matters

Landscape Trades is published nine times a year: January, March, April, May, June, August, September, October and November.

Supreme Court rules on “own work” exclusion.

BY ROBERT KENNALEY

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38 Mentor moment

Copyright 2016. All rights are reserved. Material may not be reproduced in any form without written permission from the publisher. Landscape Trades assumes no responsibility for, and does not endorse the contents of, any advertisements herein. All representations or warranties made are those of the advertiser and not the publication. Views expressed do not necessarily reflect the views and opinions of the association or its members, but are those of the writer concerned.

ISSN 0225-6398 PUBLICATIONS MAIL SALES AGREEMENT 40013519 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: CIRCULATION DEPARTMENT LANDSCAPE TRADES MAGAZINE 7856 FIFTH LINE SOUTH, MILTON, ON L9T 2X8 CANADA

Bob Allen’s community commitment comes from the heart.

DEPARTMENTS GREEN PENCIL 4 INDUSTRY NEWS 26 LETTERS 29 NEW PRODUCTS 30 CNLA NEWS 32 MANITOBA UPDATE 34 COMING EVENTS 36 CLASSIFIEDS 36 WHERE TO FIND IT 37

NOVEMBER 2016 | LANDSCAPE TRADES |

3

greenpencil The newly-launched Canadian Landscape Standard:

Power tool

I

f I could promote one clear message to

Canada’s landscape industry, it would be to embrace and use the Canadian Landscape Standard.

If you have only one document to take down from the shelf, this one will set you apart.

The Standard finally provides our industry with exactly what it says: a benchmark or baseline on measurable expectations for landscape specs. And it works right across Canada.

The British Columbia Landscape Nursery Association (BCLNA) and British Columbia Society of Landscape Architects (BCSLA) initially cooperated on a detailed standards document, which has been in place about 15 years. Through my work repBy Phil Paxton resenting contractors in CNLA’s Landscape Canada group, we asked a question: Can we nationalize the standard?

So committee members from BCLNA, Landscape Canada, BCSLA and the Canadian Society of Landscape Architects met in Whistler, B.C., about two years ago to draft a new national Standard. It was gratifying to be part of this great cooperative story, and we are proud of the resulting document.

I heartily encourage all contractors to use the Standard, and benefit from its substantial business advantages. Use the Standard when specifying, and

cite the Standard in your contracts. It will enhance your credibility and profile. This is especially valuable for smaller contractors — 80 per cent of our companies have five employees or fewer. Using the Standard backs up your professional stature.

You might ask, will endorsing the Standard mean anything to your customers? You bet it will! These days, customers have access to so much information on the web — much of it is rubbish. If they are looking for a low-cost provider, you need not worry about differentiation. But if you are committed to profitability, you must implement a differentiation strategy based on credentials such as certification, association membership and company accreditation. Plus, you must have quality contracts — backed up by the authority of the Canadian Landscape Standard.

As I look back on the experience of drafting the document, I am so pleased to have been part of an effort where contractors and landscape architects came together from all regions of Canada, to strategically move forward in one direction, as one industry. LT

Phil Paxton is a 37-year veteran of the landscape industry. He operates Alpha Better Landscaping and Wheatland Trees, based in Calgary, Alta. Paxton’s volunteer credentials are extensive, and he currently serves as chair of CNLA’s Climate Change Taskforce.

To order the Standard, visit csla-aapc.ca/standard.

4 | NOVEMBER 2016 | LANDSCAPE TRADES

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Nathan Helder shares tips and strategies to ease tight times, and promote smooth landscape company operation 6 | NOVEMBER 2016 | LANDSCAPE TRADES

Nathan Helder is a regular business management source for Landscape Trades. His company, Gelderman Landscape Services of Waterdown, Ont., is well respected within the green industry. Helder also operates Southbrook Consulting, where he teaches his business principles to company owners from a range of sectors – clients willing to learn and do better. Helder shares his cash flow strategies in this issue, hoping to prevent some insomnia among landscape company owners.

nice black net income number on the Profit and Loss Statement does not mean cash in the bank, and Nathan Helder understands the reasons in detail. There is a huge delay in the time receivables show up in reports, and the time contractors get paid. Capital expenditure costs above depreciation must be paid. And companies need to be fed during the interim.

That lag certainly applies to residential design/build, and commercial accounts can be even more challenging, often stretching out into 90 days. Tight cash is very common for many small businesses; the following practical strategies from Helder help convert income to cash as soon as possible.

Understand and analyze your current cash position Helder is a numbers guy, and he encourages entrepreneurs to divide assets by liabilities to get a very valuable number: your Working Capital ratio. The goal is a ratio of 1.2 to 3. Ratios below 1 – negative working capital – indicate cash flow problems. Your company may be carrying a too-large debt burden; servicing that debt is squeezing your ability to operate. You might not be making a profit. Or your company may be growing fast, resulting in similar cash problems.

A business owner in a negative working capital position already knows it — he or she is sweating payroll and stretching out payables. But Helder says analyzing and knowing your exact ratio number helps take back control. He says if your ratio improves even one-half of one per cent, you will notice.

Have a short-term cash plan Helder recommends keeping a cash flow worksheet, updated when times are tough. This snapshot reveals your cash position over the next week, and the next month, which is typically two payroll periods. He uses a simple Excel spreadsheet (see illustration) for planning.

Be accurate in lining out all your upcoming expenses,

including lease or loan payments. Don’t forget monthly or quarterly government remittances. And Helder advises business owners to be conservative, since having more cash on hand than projected is never a problem.

In his consulting experience, Helder sees far too many companies try to manage cash by looking at account balances.

Look at the big cash picture According to Helder, yearly cash flow projections go hand-in-hand with the short-term worksheets. He urges all business owners to do annual budget forecasts, and annual cash flow projections — especially companies with marked seasonal variations, such as landscape contracting and snow removal. The primary, obvious benefit is to help you manage expenses over the year, but forecasting also allows you to establish credit with your banker at the ideal time — when you don’t need it!

Structure deposit policies for your advantage In construction, the smaller the balance due upon project completion, the better your cash position. Specify 30 per cent due before work starts, 30 percent midway and 40 per cent on completion – due on the last day of work. Or even 40:40:20. This policy gives you two big advantages; cash flow during the project, and less risk at the end in case the customer claims a deficiency. It helps to visit the client in person when the times come to collect payments.

State all terms clearly in contracts; customers appreciate the clarity. “Keep in touch with your clients constantly, it prevents surprises,” says Helder.

It may benefit cash flow to offer discounts for payment in full before a project begins, but Helder cautions you must know your costs to make this work.

Prompt invoicing protects you Prompt, no-nonsense billing strategies carry benefits beyond the obvious. Customers actually appreciate clear and consistent invoicing policies, and they actually do want to pay. Delayed invoicing allows customers to “hold back” until deficiencies are corrected.

At Gelderman Landscape Services, maintenance customers are invoiced the first day of each month, for that month’s work. Commercial customers can be a little slower and more challenging to collect; simply asking about their payment schedule — when they cut cheques — can help time invoicing to your company’s advantage.

Even though it sounds less efficient, you can collect

NOVEMBER 2016 | LANDSCAPE TRADES |

7

yrolls ad 2 pa e h a g ctin te proje ate> estima <D w d lo e F Cash Prepar alance Bank B .C. ing L.O osits (+) Operat ep D nding O u t st a

$ e Date du Amoun

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ues (+) g Cheq in ts d n a t aymen O uts Lease P g s t in n m e o Upc Paym g VISA in m o c Up yable HST Pa ents mmitm o C e g r La ments ommit C s) e g r a L 30 day s Due ( le b a y a P Rent ce Insuran d n e Divid IB WS s Benefit P S R R imate EHT es - est x a T & Payroll Buffer Total w erm Flo Short T e Balanc heques nding C a t O uts yable HST Pa ds Dividen fits & Bene ll o r Pay

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Rent Taxes Interim & Visa Leases es Incentiv t Subcon

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faster if you send smaller invoices, more frequently. Helder says customers are less likely to argue over smaller amounts, while it is easier to resist paying larger amounts.

Helder recommends assigning a specific person in your operation responsible for collections. His company calls maintenance customers on Day 45 of the 8 | NOVEMBER 2016 | LANDSCAPE TRADES

-

While far too many business owners operate day-to-day, hoping for cheques in the mail, this customizable cash flow worksheet really can help control the future. The document is posted for download at landscapetrades.com/cashflow.

You may contact Nathan Helder directly with questions.

monthly billing cycle, and Gelderman’s policy is to “Kill customers with kindness.” This system trains customers to expect consistent, respectful payment requests, and to stay current.

The sales staff at Gelderman is responsible for collection, and they receive commissions on collected

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revenue only. The company motivates managers by basing remuneration on company profits.

Controls enhance revenue Nathan Helder is sold on meticulously tracking job costs. He says this is especially critical with change orders. He says to always get a confirmation, because ambiguity, misunderstandings or differences of opinion always result in delayed payment.

Helder takes tracking job costs so seriously, that his company actually runs profitability-by-customer reports. The reports let Helder know when he needs to raise prices on specific customers, or when he needs to let one go. (Helder says he introduces a better-fit supplier when “firing” customers.) While this level of detail might sound unachievable, Gelderman Landscape Services is making it happen in real life, and the company’s cash position is stronger as a result.

Control spending, partner with suppliers Every penny saved improves cash position, and Helder is clearly an advocate of keeping an eagle eye on ex-

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10 | NOVEMBER 2016 | LANDSCAPE TRADES

penses. He even builds a savings plan into his scheduled expenses. Besides the benefit of the resulting Rainy Day fund, the practice makes things just that little bit tighter, to force owners to be smarter with spending.

Helder also believes in true partnerships with suppliers, based on communication and honesty. He relived telling a supplier upfront cash was tight, and Helder was being forced to delay payment — and the supplier thanked Helder: ‘Nobody else tells us!’ Negotiating payments terms is always better than withholding payment, he says.

Establishing trust with suppliers can benefit cash flow in another way, according to Helder. “Ask what the supplier can do to cut your costs; it never hurts to ask, ‘What can you do to help us grow?’” Suppliers may respond with an idea or opportunity that is modest from their perspective, but quite helpful to you.

Liquidate costly clutter Extra inventory or unused equipment is found in almost every landscape yard. The Return on Assets ratio, Net Profit divided by Total Assets, indicates efficiency — the goal is 20 per cent or higher. All unused items represent tied-up cost that is doing nothing for your company — and Helder advises contractors to clean up and liquidate. He says Kijiji works great. Be careful not to give the appearance you are selling out of distress, but do get cash in place of unused, unproductive items.

After all, Helder says, you can always rent equipment back if needed. Contractors may also be able to rent out excess yard or office space on a short-term basis.

Expand your options Helder is clearly dedicated to keeping his company on an even keel through the challenges of seasonality, as well as growth. Toward that end, he shared some strategies on working with bankers. Helder meets with his bank every year, and he specifically invites the bank to his office, which give him better control of the meeting. Helder says he summarizes and explains his financial statements, including ratios — “Because they are important to me!” This goes a long way in projecting confidence to banking partners. And Helder believes regarding the bank as a partner is just as important as forging relationships with other suppliers. “It allows me to ask for more money, with fewer restrictions.”

Helder is a believer in using his line of credit when needed; he calls it cheap money. The bank may agree to provide a “bulge” to your line of credit, to reflect your company’s seasonal needs. According to Helder, using cash to buy depreciating assets is a mistake; he recommends renting, leasing or subcontracting instead.

Helder also mentions it is nice to have some cash outside your business, so you can put it back in to improve your balance sheet as needed when bankers are looking.

LT

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Ten KPIs to ponder at year’s end

BY MARK BRADLEY

KPI stands for Key Performance Indicator, which is a number, metric or measurement designed to tell you whether you are achieving your goals — or not.

For companies successfully tracking their KPIs, the end of each year is when all that effort starts to pay big dividends. Start comparing what you thought would happen versus what actually happened, and you’re able to pinpoint exactly where corrective action is needed.

For most landscape companies, this time of year triggers frustration. Most companies either failed to track their numbers at all, or they tracked some, but no one really trusts them. If your company belongs in either camp, make it a goal to fix this for next year.

Eighty per cent of our industry lacks good handles on their numbers, or what’s going to make them successful. If you want to stay ahead of your competitors, the low-ballers, and most of the industry, you must outthink them.

There are many, many KPIs that affect our success. Safety KPIs should be front and centre, but for the purposes of this article, here are 10 specific financial KPIs that are critical to landscape businesses. They help us learn, and share, exactly where we’re succeeding and where we must improve.

Sales KPIs Sales KPIs are the most basic, and they should be the simplest to track. If you’re not tracking any KPIs in your business, you’re likely going to start here.

Sales forecast vs. actual: Compares budget sales forecast to actual revenue earned.

Simply put, this KPI makes sure we sold enough work to keep our crews busy, cover 12 | NOVEMBER 2016 | LANDSCAPE TRADES

our overhead and make a fair profit. If we’re short of our target, it’s likely that it stings twice. Not only will our net profit suffer, but we likely didn’t recover enough overhead, either. If you can only focus on one sales KPI, make sure this one is it. Have a sales budget and track it.

Estimates won vs. lost (by count): Divide number of estimates won by total number of estimates presented. This KPI tells us the percentage of estimates that turn into contracts. A low close rate tells us we need a better sales process (studies show that most jobs aren’t lost on price), that our business isn’t suited to our target market, or that we’re in a highly competitive market and need to better differentiate ourselves.

Estimates won vs. lost (by dollar value): Divide total dollar amount of work estimated by total dollar amount of estimates won.

This KPI shows if we’re spending the right effort on the big customers. Pay careful attention to significant differences in close rate by count versus close rate by dollar value.

For example, if we had a 60 per cent close rate (by number of estimates) but a 40 per cent close rate (by dollar of estimates), we know that we’re not spending enough time and effort on the big opportunities. If you have several people in your company that sell, this is a very important number to look at on an individual basis. Tip: For a more accurate picture of how you compete, exclude change orders.

Expense KPIs Expenses are money flowing out of the business, so logically, these need to be carefully monitored and controlled.

Equipment expense ratio: Divide total

equipment costs by total revenue earned.

This KPI gives us the percentage of revenue spent on equipment. It’s a good number on its own, but it’s a great number when looked at in combination with our labour ratio. If your labour ratio is rising (more revenue spent on payroll) and your equipment ratio is falling (less revenue spent on equipment), it’s a good indicator you should be buying equipment to improve field productivity.

Materials expense ratio: Divide total material expenses by total revenue earned.

This ratio shows the percentage of our revenue spent on materials. If this number is increasing (and you’re doing the same type of work), this can help improve estimating problems or wasteful purchasing habits.

Overhead expense ratio: Divide total overhead expenses by total revenue earned.

Overhead must be kept in check to keep prices competitive. Monitoring the percentage of sales spent on overhead costs is critical to staying lean and mean, and also helps you plan overhead investments or cutbacks as your total revenue grows or shrinks.

Productivity KPIs If you can sell work and you’re productive, you’re almost guaranteed to be profitable.

Therefore, productivity KPIs are our next important area of focus.

Field labour expense ratio: Divide total field payroll costs by total revenue earned.

Do not include burden (payroll taxes, etc.).

One of my favourites, this KPI measures the productivity of our field staff and the efficiency of our operations. A low percentage indicates an efficient, productive company — you’re getting more sales done with lower payroll costs. A high percentage means field

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managementsolutions payroll is eating up a larger percent of your sales revenue — a clear sign of problems.

We always compare our field labour ratio to our budget (to ensure we’re as productive as planned) and to last year (to ensure we’re on a path of continuous improvement). Tip: Exclude all overhead staff salaries because you only want field staff payroll.

Revenue per man hour: Divide total revenue earned (sales) by number of payroll hours (field staff only). Here is a simple, incredibly valuable KPI. Our revenue per man hour tells us how much total revenue (includes materials, overhead recovered, and profit) is earned for each man hour worked in the field. A high number indicates more work is getting done in less time. Since skilled labour is our most important and scarce resource, you must maximize your average revenue earned every payroll hour.

It’s an amazing number since it’s relatively simple to calculate using just your accounting, and it captures a lot of information.

Under-estimating hours, taking too long

on projects, under-bidding jobs, mistakes and re-work will all hurt our revenue per hour KPI. Tip one: Measure your revenue per hour on every job you bid by simply dividing the price of the job by the number of man hours on the job. Make sure the job meets a certain threshold to ensure that job is helping you hit your goals. Tip two: Revenue per man hour should be measured by division. Maintenance crews will have a much lower dollar per hour ratio since they don’t install much material.

Safety KPIs Successful business owners understand that investing in safety means far more than a line item on expenses.

Incidents per man hour: Number of incidents divided by total payroll hours.

Incidents are ‘near misses’ and include accidents where no one gets hurt, but could have potentially got hurt — or caused minor damage to equipment or structures. It’s really important to track these incidents, to

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ensure we are continuously implementing measures to decrease the risk of further incidents or accidents.

Accidents per man hour: Number of accidents divided by total payroll hours. Everyone deserves to go home from work safe and sound every night, but it’s easy to take safety for granted when you’re doing the same things day-in and day-out. Every foreman’s top priority should be to keep his or her crew safe every day — this is even more important than production time or quality.

Tracking this metric helps us keep tabs on whether our company is making improvements in eliminating accidents.

If measuring these KPIs quickly in your company is difficult, or even impossible, make yourself an unbreakable goal to fix this next year. Ask yourself whether some of the following questions can help make tracking a less daunting task: Am I making things too complicated? Do I try to track metrics, but get lost in the details? Keep things simple — especially when introducing new systems — and you’ll have much better results.

Do I have the right software? Tracking KPIs with paper is like excavating without the right equipment; a shovel will work, but that driveway will take five to 10 times longer by hand than it would with a machine. Sorting through stacks of paperwork is time-consuming, and it makes mistakes five times more likely. A small investment in technology will deliver far greater returns when used correctly.

Am I holding my staff accountable? Don’t let a few staff members who refuse or resist tracking numbers hold your company down. A few bad apples will truly spoil the whole bunch. Clearly explain the systems, why they exist, then checkin regularly to ensure each person is executing LT the systems you’ve put in place.

Mark Bradley is the CEO of Ontario-based TBG Landscape and LMN.

prolandscape.com | 800-231-8574 | sales@prolandscape.com

14 | NOVEMBER 2016 | LANDSCAPE TRADES

14 | NOVEMBER 2016 | LANDSCAPE TRADES

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Keep it simple Over the years, I have complicated many things needlessly. Had I chosen to keep those things simple, life would have been easier and more enjoyable. End of my true confession, unless you would like to know why I was grounded for two weeks in Grade 11.

My friend who owns a successful, high end maintenance company called recently.

He has a customer who is always slow to pay bills. He wants to run his prepared speech by me for critique. He plans to call this customer and to itemize all the outstanding bills needing payment in order to keep the business going. Included are fuel, insurance, tool replacement – but that is just the beginning.

“Got it, great speech,” I tell him. “But I have one problem. Why do you feel obligated to explain why the customer needs to pay his bill? You did the work, he owes the money. ‘Pay up. End of story.’”

When a customer owes us money, we are under no obligation to explain why we want our money. There is no need to complicate things.

At the retail level, how often have we seen “deals” offered that are so complicated, so filled with conditions, that it’s impossible to see why it’s a “deal” to begin with? “If you buy two, you can buy the third one for half price and the fourth one for free if you apply for our credit card with a 36 per cent annual interest rate.” Tell me again what you are selling?

I understand limited-time offers, as they signal urgency. However, it is also important to clearly state the offer. In my ads, I always made sure to place the exact quantities available for the sale, so readers understood inventory was limited. And when we were clearing out products, we would let our clients know that it was the last opportunity to purchase the item. Above all else, in our search for simplicity and clarity, we have to be fair.

I absolutely love that I can go to an air-

16 | NOVEMBER 2016 | LANDSCAPE TRADES

BY ROD McDONALD

line web site, book a ticket and know exactly what it is going to cost me to fly from one city to another. All of the taxes, gate charges, fuel surcharges and so on are now included.

Of course seat selection and the dreaded luggage fee are not, but still, the main ticket price is fairly inclusive. I know what I am buying. We can thank the government regulators for that one.

Compare that to buying a vehicle. Can you walk into the dealership and get a vehicle for the advertised price? I doubt it. Once in the dealership, out come the taxes, the delivery charges, the dealer prep charges, the tax on the air conditioning and to sing a ‘60s song, “The beat goes on.” One local dealership now adds an administrative fee of a few hundred dollars to “take care of the paper work.” Wow! I would prefer an advertised price being exactly how much I must pay to drive the vehicle off the lot.

I have never understood contractors who hedge when asked for a ballpark figure. I never hesitated to give ballpark figures, as they were useful in eliminating tire kickers.

If a potential customer knew how much it would cost to landscape his backyard, I would ask a few questions and eagerly quote the price range. I was never legally bound by that range, if it turned out the job was much more expensive than first described, but it did help me decide how much further to take the conversation. If a customer said, “I thought it would be in that range,” I knew he was a realistic prospect. If he said, “I was talking to ABC Cheap Landscaping and they quoted half that amount,” I would get a different impression. I do not believe in trying to convert a low-end customer into a quality prospect. I tried to keep things simple by estimating only where there was a reasonable expectation of closing the deal. I much pre-

fer to work for clients who really want me, not for those who really want to grind me.

Most people prefer to know the bottom line when receiving an estimate. They want to know the quoted price includes labour, materials, taxes, overhead and delivery charges. A few years ago, I hired an interior designer to convert a bedroom in our lovely house into a spa bathroom, with all the bells and whistles. We were empty nesters and wanted something special for ourselves. The designer convinced me we did not need a general contractor; instead, she would look after everything on our behalf. Stupidly, I agreed. We had no fixed price. I told her I wanted to keep the price under $35,000 and she assured me $33,000 would be closer to the finish line. To keep a long story short, the renovation took more than 18 months — 15 months over schedule — and cost $47,000.

Each time I asked the designer about the bills coming in, she assured me we were still on budget. Apparently, math was not her strong suit. This experience confirmed why I insist on fixed pricing. If there are unforeseen problems, I understand and I am flexible, but they must be unforeseen.

Sales people with complicated pitches seldom earn my business. I often tell the story of walking into a computer shop; I was ready to be closed. The fellow who waited on me was more interested in sharing how smart he was and showing his command of technical knowledge. He never even asked me what I wanted. I felt like a hostage. He “techie talked” me the entire time and I walked out. I have a simple rule for any and all of my seminars, no matter who is the seminar leader: “No techie talk!” You must answer customer questions in clear, easy to follow, understandable English. No one needs to know how smart you are. They just want to

roadtosuccess know how to look after their flower beds, so tell them how easy it is. If you can’t tell a customer how to look after flower beds in three easy steps, you are not nearly as smart as you think you are.

The same applies to accountants, investment brokers, lawyers and financial investors. My basic rule is: If you cannot understand what they are telling you, then it is time to find someone who can. My investment broker, who has been advising me for 25 years, is excellent at explaining how a new tax rule will affect me. I don’t need the doublespeak some professionals expel. An investment broker wanted my business a few years ago. He complicated his sales pitch so much that I left his office when he paused to catch his breath. I went there to see what he could do for me, not to listen to how smart he was. Smart people have no need to tell you how smart they are. You will figure that out on your own.

A local artist, who has had pieces displayed in national galleries, told me many years ago “simplicity is the keynote to good taste.” Our conversation was centred on the design of landscaping projects. Her take was that too often, landscaping projects are overly complicated. The eye does not know where to focus and there is too much competition for attention. I have quoted her advice on many occasions, including when a customer who handed me a list filled with hundreds of plants she wanted in her yard. I had to ask my customer, “After we plant everything, where will we walk?” Keep things simple.

All of us have to make choices about what is really important to us, with an understanding of what we can live without.

This applies to all aspects of our businesses.

A set of books must tell us the information we need to know. No one should have to explain what they mean.

We have to make choices to stay on the road to success — and choosing simplicity is LT an excellent choice.

Rod McDonald owned and operated Lakeview Gardens, a successful garden centre/ landscape firm in Regina, Sask., for 28 years. He now works full-time in the world of fine arts, writing, acting and producing in film, television and stage.

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legalmatters

Consequential loss goes to Ottawa Part II

BY ROBERT KENNALEY

In June, we told you about a case which was headed to the Supreme Court of Canada, over the “own work exclusion” and the extent to which a contractor’s liability insurance policy should cover what is known as ‘consequential loss.’ We used the common example of the retaining wall and the Volkswagen to describe the issue: Where a retaining wall falls down, the liability policy will generally not cover the cost of repairing or rebuilding the wall because the contractor did what he intended to do in building the wall (and there is no “accident”). If the wall falls on a Volkswagen, however, it is said that the liability policy will generally respond to cover the car, because its damage is an unforeseen consequence of the construction deficiency, unrelated to the work itself.

We pointed out our Courts have struggled to apply the concept of consequential loss in practice and that, accordingly, a recent case which has wound its way to the Supreme Court is compelling. The case, Ledcor v Northbridge Indemnity Insurance Company, involved an insurance policy which covered

“direct physical loss or damage” to a construction project. As the construction was winding down, a company hired to clean the windows scratched them and they had to be replaced. The insurer denied coverage based on the ‘own work’ exclusion, arguing the damage was the ‘faulty workmanship’ of the insured and therefore not covered under the policy.

The Alberta Court of Appeal developed a new test for determining whether or not physical damage was “resulting” damage, one based on “physical or systemic connectedness.”

The theory was that resulting damage could not be physically connected to, or part of the system of, the faulty work itself. Based on that test, the Court held the damage was not sufficiently remote to be “resulting,” or “consequential.” The Court also held the purpose of the policy was to cover certain unexpected events and accidents, and in this case the damage was neither, having been directly caused by the intentional scraping and wiping motions of the cleaners’ work. In its

view, a standard liability construction policy is not intended to provide a “warranty” that construction was performed properly.

In dealing with the matter, the Supreme Court of Canada firstly held that a new test was not necessary. The majority then held that, while the exclusion clause was ambiguous (with no definition of “resulting damage” having been provided), the general principles of contractual interpretation should suffice to address the issue. In applying those principles, it held, the faulty work exclusion was to be interpreted to only exclude the cost of redoing the faulty work itself — which in this case was the cost of re-cleaning the windows. Damage to the windows, and therefore the cost of their replacement, was held to be covered.

The majority went on to hold this interpretation was consistent with the reasonable expectations of the parties and reflected and promoted the purpose of the insurance policy. They held that any interpretation which denied coverage merely because the damage

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legalmatters was part of the project on which the contractor was working, would undermine the purpose behind the policy and would deprive those who had purchased the insurance of the coverage for which they had contracted.

The majority reviewed a number of prior decisions, which they found to be consistent with their finding. They also reviewed several that went the other way. They found that many of these involved faulty work by contractors hired to provide design. In a finding that is somewhat difficult to follow, the majority held that the denial of resulting damage claims in such cases made sense.

The Court stated that “in faulty design cases, a contractor is obligated to design a given item, with the design being integral to the whole of that item. Thus, the cost of repairing the damages caused to that item will be included within the cost of redoing the faulty work, and the resulting damage exception will necessarily apply to damages caused to items other than the item being designed.” (Regardless, it appears the Court did not extend its interpretation of the exclusion to faulty design cases).

The majority also acknowledged the Courts have historically and generally applied the resulting damage exception narrowly. However, it found that this narrow application was not consistent and that “parties cannot therefore adequately predict what sort of damage will

or will not be caught by the exclusion.”

Justice Cromwell was the only Justice who did not entirely agree with the majority.

He agreed with the result, but held that the application of the clause should not be made generally. He held that the question of what should, and should not, be considered “the cost of redoing the faulty work” should ultimately have to be decided on a case‑by‑case basis, on the facts of each particular case.

There is no question the Supreme Court’s decision is an important one. The majority expressly distanced themselves from a trend of cases which had only narrowly allowed resulting damage claims to succeed in the face of an “own work” or “faulty workmanship” exclusion. The Court also appears to have held that (generally speaking and with the possible exception of design cases), anything beyond the cost of repairing the contractor’s own faulty work should be covered as resulting damage. This will make it much easier for claims for the costs associated with construction defects on a project to succeed.

Consider, for example, where a foundation wall is deficient, but the cost of repairing that deficiency necessitates a removal and replacement of the building above it. The Supreme Court of Canada’s decision will make it easier for claimants to argue everything but the repair of the wall should be covered as consequential loss.

Still, the Supreme Court of Canada deci-

sion was made on the wording of the policy in question. In this regard, there is truth to what Justice Cromwell had to say: insurance contracts will always have to be interpreted on the wording of the particular clauses at issue. It may be, for example, that insurance companies will change the wording of their ‘own work’ exclusions to more clearly exclude repairs to any of the contractor’s work.

It may also be that a judge, on any given day, could interpret a slightly different but similar clause, differently. In the event that a claim involving potential resulting damage arises, care should be taken to review the language and facts in question in the context of what the Supreme Court of Canada has had to say in this case. Chances are the case will greatly assist the insured to obtain coverage. This case will be extremely helpful, if LT not determinative, in that regard.

Robert Kennaley practices construction law in Toronto.

He speaks and writes regularly on construction law issues and can be reached for comment at 416-368-2522 or at kennaley@mclauchlin.ca.

This material is for information purposes and is not intended to provide legal advice. Readers who have concerns about any particular circumstance are encouraged to seek independent legal advice in that regard.

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industrynews

Congress 2017 promises to be four days packed with education, networking and the latest techniques and products to make your business more successful.

Networking and education at Congress 2017 Join over 12,000 of your friends and colleagues at Landscape Ontario’s Congress trade show and conference, held January 10-12, 2017, at the Toronto Congress Centre. With more than 800 international exhibitors, dozens of worldclass speakers and industry leading educational programs, the three-day show offers unique opportunities to check out the latest products, meet face-to-face with business partners, and learn new techniques to help you make money.

The Garden Centre Symposium returns home to Congress this year, featuring the Awards of Excellence presentations for the garden centre and grower programs. The special event, held the morning of Jan. 11, will also include sales workshops led by retail business guru Tom Shay.

Pat McCrindle and crew are set to engage big crowds on the show floor each day at 10:30 a.m. and 2:30 p.m., as part of Hardscape Live, presented by the Landscape Ontario Hardscape Committee. McCrindle, a long-time ICPI (Interlocking Concrete Pavement Institute) instructor who has laid over eight million square feet of pavers over his 30-year career, will demonstrate time tested installation methods and strategies.

The three-day conference program is highlighted by keynote speakers: Becky Keller, a four-time Olympic medalist with Canada’s women’s hockey team; Anna Olson, a celebrity chef and television host on the Food Network; business expert Bill Hogg; and leadership and team development trainer Scott Kress.

The lineup also includes the annual IPM Symposium, plus Designer and Irrigation conferences, as well as the popular Owners Only Workshops and Life Lessons at Lunch sessions.

26 | NOVEMBER 2016 | LANDSCAPE TRADES

Following your busy days at the conferences and checking out the show floor, enjoy the social side of Congress in the evenings, with the Awards of Excellence ceremony on Jan. 10 and Tailgate Party on Jan. 11. Tickets must be purchased for the Awards ceremony, but admittance to the Tailgate Party is free with your trade show badge.

Be sure to ask suppliers for your VIP pass, providing free admission to the trade show floor.

Registration and more details about Congress 2017 are available at locongress.com.

Green professionals gather for Hort East Hort East trade show and conference 2016 runs Nov. 21-23 in Halifax, N.S. The annual event for green industry professionals in Atlantic Canada offers networking opportunities, educational sessions and social events, based out of the Holiday Inn Harbourview. Over 50 exhibitors will be on hand to showcase new products and ser-

vices for the landscape design, maintenance, construction, greenhouse/nursery, garden centre, lawn care and golf course industries. For more information, visit horteast.com.

Winnipeg rejects “Uber” snow clearing system Winnipeg city council voted down a motion Sept. 23 that would have seen the public works department utilize an “Uber-style app” for micro bids from private contractors on residential snow clearing contracts.

Coun. Russ Wyatt proposed the sharingeconomy system to the city’s innovation committee as a way to cut costs.

“I see the benefit as being first of all improving our service levels,” Wyatt told Winnipeg Metro. “Our system is based on sections of the city, fairly large areas being tendered out. I would foresee this where you break it down on a far smaller scale, where you break it down block by block, where you’d be able to get individuals

HortEast 2016 will host over 50 exhibitors showcasing new products and services for the green industry.

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industrynews (involved)… It could be quite empowering, (and it could) create some entrepreneurs.”

City staff strongly opposed the idea, citing insurance issues and concerns about what would happen if streets didn’t draw bidders.

CN expands tree planting program Communities in Bloom, Tree Canada and CN EcoConnxions recently announced 50 communities across Canada will be awarded grants of $25,000 to fund local tree planting projects in honour of the nation’s 150th anniversary.

The 2017 grant awards, the sixth year of the “From the Ground Up” program, double from 25 to 50 the number of communities that have been awarded grants in previous years.

Selected communities will each receive a $25,000 grant from CN, and a commemorative plaque and ceremonial tree to be planted in celebration of Canada’s 150th anniversary.

The CN EcoConnexions – From the Ground Up program promotes community sustainability through the greening of municipal and community properties across Canada. CN and its part-

ners, Tree Canada and Communities in Bloom, assist Canadian municipalities and community groups in establishing tree planting and green space enhancement initiatives in a sustainable, environmentally responsible manner.

Since CN launched From the Ground Up in 2012, more than 60,000 trees and shrubs have been planted, helping to enhance the environmental and social health of 150 communities across Canada. Through its various tree planting initiatives, including From the Ground Up, CN has planted 1.2 million trees across North America since 2011.

Bayer to acquire Monsanto German-based pharmaceutical and crop chemicals company Bayer has reached an agreement to purchase American seed giant Monsanto for $66 billion. The new firm will control more than a quarter of the combined global seed and pesticide markets.

Bayer is the second largest crop chemical company in the world, behind Syngenta, while Monsanto is a world leader in seeds and de-

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veloper of the herbicide Roundup. Anti-trust experts predict the company will need to sell some seed assets, including soybeans, cotton and canola, before regulators will approve the deal.

Canada Blooms celebrates Canada’s 150th There will be a whole lot of red and white at Canada Blooms 2017, as the country’s largest flower and garden festival celebrates the nation’s 150th birthday. With the theme “Oh! Canada,” the festival is inviting design/build professionals and floral experts to dazzle visitors with their unique interpretations of the true, north, strong and free.

The annual event is set for March 10-19, 2017 at the Enercare Centre in Toronto, Ont. For more information, visit canadablooms.com.

Chem China nears purchase of Syngenta An American national security panel has signed off on the $43 billion dollar purchase agreement of the Swiss-based farm chemicals and seeds

company Syngenta, clearing the way for its acquisition by ChemChina.

The China National Chemicals Corporation, known as ChemChina, has bought out numerous chemical companies across Europe, the Middle East and Asia in recent years, in a rapidly consolidating global chemical marketplace.

The deal still needs to pass through anti-trust regulations in several countries before becoming official.

Photo correction An incorrect photo was published for ‘Megawatt Rose’ begonia in the October New Introductions issue of Landscape Trades. The correct picture is above.

LT

letterstotheeditor Re: Sentinel elms, October 2016 Landscape Trades Lee Ann: Now that you’ve brought up the elm topic: How is the Guelph elm project coming along, I wonder. Still in progress? And if it is, is there a time line for results? Would the project be helped by receiving GPS locations of any of the remaining specimens if landscapers across the province would submit photos of them and their locations? Or has the exercise moved beyond that point?

And, in all the excitement of the new releases, how do the native-plant-minded among us regard the annual emphasis on “New Intros” in Landscape Trades?

Harry A. de Vries Mount Hope, Ont. Sean Fox of the University of Guelph Arboretum Elm Recovery Project says things are moving along quite nicely. Henry Koch started the project in 1998, when some 300 surviving elms were targeted for research. Fox and teammates are currently “trying to kill” top performers in test plots, cloned from those survivors, and the

project has identified many elms showing strong tolerance to Dutch elm disease. While it is not yet time to recommend cultivars for commercial propagation, Fox says that could happen within the next two decades. Researchers still want to know about mature surviving elms; a submission form is posted on the Arboretum’s website.

An online elm atlas is one of the project’s goals for the future. Fox’s team is especially anxious to reintroduce disease-resistant elms to both natural and cultivated landscapes, because elm is native to Ontario.

Speaking of natives, native-plant-minded readers are most welcome to weigh in on new introductions; write to editor@landscapetrades.com.

— Editor Re: Road to Success Just finished another great read from Rod McDonald in the October issue of Landscape Trades magazine ... bet you never caught the three-year-old ...

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newproducts Safety knife

Skid steer attachments Two new adapters are now available from Worksaver to interface with Kubota loaders with pin style buckets. One adapter is designed for Kubota models LA504 and LA534, while the other fits models LA524 and LA525.

These adapters pin to the loader arms, using existing pins, allowing the use of skid steer type attachments, providing greater versatility to the operator. Both adapters are built to the universal skid steer standard. Features include plated handles, pins, springs and bushings to provide a long service life.

Worksaver www.worksaver.com

A quick and easy substitute for utility or pocket knives, the new Safety Cutter from Milwaukee is designed for opening cardboard and corrugate, tape, plastic, and shrink wrap on â&#x20AC;&#x153;knife-freeâ&#x20AC;? jobsites. The Safety Cutter features an optimized recessed blade that stays sharp and allows for more efficient cuts and utilizes an ergonomic nylon handle. For added utility, the front of the tool is designed with a tape piercer, while the back is equipped with a lanyard hole.

Milwaukee www.milwaukeetool.ca

Portable generators The new Cat RP Series generators from Caterpillar are designed to provide portable power to professional contractors who need to power tools and lights on the job.

The initial models in the series range in size and power from 3.6 kw to 7.5 kw.

Caterpillar www.cat.com

Snowplow accessory kit The Scrape Maxx accessory kit gives SnowEx plows the ability to apply active downward force to bust through hard packed snow, back-drag more effectively and maximize scraping performance down to the pavement. All SnowEx plows (with the exception of UTV plows) are already built with this ability, but Scrape Maxx harnesses the power to deliver the right amount of force. By increasing down-force, Scrape Maxx effectively allows a light-duty plow to deliver commercialgrade performance according to SnowEx. SnowEx www.snowex.ca

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Multi-purpose loaders

Ride-on zero turn mowers Toro recently launched the new line of Titan HD zero-turn mowers. Available in three model families — the Titan HD 1500 Series, Titan HD 2000 Series, and Titan HD 2500 Series — the mowers feature the ability to easily attach tools and other accessories with innovative tool-mounting brackets.

This feature allows operators to transport tools around a property, including string trimmers, five-gallon buckets and other yard tools. For enhanced operating comfort, the Titan HD platform utilizes an adjustable deluxe suspension seat, isolated floor pan design, deck step guide, easy side and front mower access, and a 12V outlet.

Toro www.toro.com

The new Avant 200 Series multi-purpose loaders are designed for property maintenance, grounds care and landscaping professionals working on projects where space is limited and a lightweight machine is necessary. This new series consists of three models: 220 is equipped with a 20-hp gasoline engine; 225 is equipped with the new 25-hp Kohler EFI gasoline engine and auxiliary hydraulics with oil flow as high as 11.1 gallon per minute. The 225 LPG is equipped with a low emission LPG engine and is suited for indoor operations.

Avant Tecno www.avanttecno.com

Hydraulic coupler The new John Deere hydraulic coupler (16GE23) for compact excavators makes switching buckets easier. Operators are no longer required to exit the cab to switch buckets, so site clearing can continue with high productivity and minimal interruptions. The hydraulic coupler is designed for 35G, 50G and 60G excavators, and is compatible with John Deere Worksite Pro attachments. A wedge bar locking system compensates for wear and keeps the coupler joint tight. The wedge-style bucket pickup enables compact excavators to maintain breakout forces by keeping weight down, and operators can easily switch to other attachments, such as hydraulic hammers, with an adaptive bracket.

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cnlanews Summer board meeting wrap-up The CNLA board of directors met in August for its semi-annual meeting in Kelowna, B.C., hosted by the British Columbia Landscape and Nursery Association. The board meetings allow both national and provincial association staff, CNLA committee chairs and the CNLA executive committee to meet face-to-face to discuss important issues regarding the association.

Below are some highlights from the threeday meeting: Staff changes at CNLA This summer, CNLA said goodbye to long-time staff member Julia Ricottone, commodities and professional development manager, who took a position with the City of Hamilton. With almost a decade at the association, Julia will be missed by staff and board members alike. We wish her all the best as she begins the next chapter in her career.

With Julia’s departure, current staff have reorganized to ensure the work of the Landscape Canada and Garden Centres Canada committees continue without interruption. While retaining responsibilities with the Professional Development Committee (PDC), Claudia Santos takes over the staff coordination role for the Garden Centres Canada committee and the International Garden Centre Association. Jason Young will step into a more active role with the PDC committee. Stacey Porter and Rebecca Doutre (returning soon from maternity leave) will help with the Landscape Canada committee.

Climate Change Adaptation Committee The CNLA board approved creation of a standing committee for Climate Change Adaptation. It is widely agreed among the board of directors that climate change is an important issue where our industry can positively affect change. This is in-line with the outcomes of the Landscape Canada Summit held earlier this spring. The summit identified the need for the landscape industry to “affect public policy and have a cultural shift.” This is to be achieved through climate change adaptation (incorporating living green infrastructure) and by emphasizing landscape standards, including natural solutions to problem areas in cities. CNLA sees a huge opportunity to engage with governments and to leverage the green industry in Canada as a solution to climate change/adaptation.

32 | NOVEMBER 2016 | LANDSCAPE TRADES

The CNLA staff said goodbye to longtime staff member Julia Ricottone (front row, right).

Member services The vehicle and equipment programs continue to grow in use as members realize the significant discounts available to them. The Member Services committee is also looking into programs for tires and large trucks. Have a program idea? Email Christine Finn at christine@ cnla-acpp.ca.

Order the Canadian Landscape Standard CNLA encourages members and municipalities to order the . Produced in partnership between CNLA and the Canadian Society of Landscape Architects, this groundbreaking document is a single, authoritative resource for landscape construction projects in Canada. This is the first time there is a national guideline to set the standard of landscape work in every province across the country. Order your copy at www.csla-aapc.ca/standard.

Harold Deenen wins President’s Award Long-time industry veteran and volunteer, Harold Deenen CLM, won the 2016 CNLA President’s Award for his outstanding commitment to the industry and association. CEO of Hank Deenen Landscaping in Toronto, Deenen is a past president of CNLA, treasurer for the Canadian Agriculture Human Resource Council and current CNLA human resources chair.

Harold Deenen Passionate about horti-

culture and the impact green living has on the future, Deenen has devoted countless hours to volunteer work. The industry has recognized his efforts over the years by presenting him with both the Frank Ewald Junior Landscape Award for outstanding leadership to the horticultural industry and Honorary Life Membership in Landscape Ontario Horticultural Trades Association. His enthusiasm has grown from an unstoppable belief in his profession and for those who work in it.

As CEO of Hank Deenen Landscaping, Deenen brings zeal for professional excellence and the environment to a corporate level. Originally founded by his father over 50 years ago, the company has grown to become an industry leader by emphasizing training, education and a healthy respect for the environment. The company won the first-ever Environment Award presented by Landscape Ontario in 2000.

Deenen’s professional credentials include Landscape Industry Certified Manager (the first CLM in Canada), Landscape Architect (OALA), Landscape Technologist (HLT) and Horticulturist/Landscaper/Greenskeeper (C of Q).

On a more personal note, Deenen is equally comfortable above and below the water’s surface.

While he is happiest boating on board “Wreckless,” he is also a private pilot and scuba dive instructor.

He firmly believes that “balance of life” is an essential ingredient to happiness and success. LT

The Canadian Nursery Landscape Association is the federation of Canada’s provincial horticultural trade associations.

Visit cnla-acpp.ca for more information.

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manitobaupdate Landscape Trades devotes space in each issue to provincial association news.

This issue features an update from Manitoba Nursery Landscape Association.

mbnla.com. Sub-sites that manage association projects continue to be developed. Check out the Awards of Excellence program at awards. mbnla.com.

MBNLA launches new logo and website

Grow16 format revitalizes annual conference

The Manitoba Nursery Landscape Association (MBNLA) has a new logo and look. The clean typeface and simple colour scheme puts the fo-

For years, members of the Manitoba horticulture and landscape industry came together at the Manitoba Green Show: two busy days in early February filled with a trade show, conference sessions, awards ceremony, live auction and the annual general meeting (AGM).

In 2016, the MBNLA broke with tradition and changed the event, venue and date. The MNLA launched Grow16, a one-day event jam-packed with educational sessions and networking opportunities on Feb. 23, 2016. With four sessions featuring 32 speakers, there was something for everyone. The day was capped off with the Grow Social, a true Manitoba event that allowed industry members the chance to connect with business partners and colleagues.

cus back on where we all come from — Manitoba! The green leaf icon is truly representative of what we all do — Grow!

The association has operated as Manitoba Nursery Landscape Association since 1962 when the Manitoba Nurserymen’s Association reorganized to include landscape gardeners. It remained the same until it adopted the name Landscape Manitoba and ‘Green for Life’ logo.

Recognizing this name does not represent all sectors of the industry, we went back to our roots and proper name, Manitoba Nursery Landscape Association. MBNLA for short.

MBNLA also redesigned its web presence at

Fun in the sun at annual golf event Green professionals gathered Sept. 1, 2016 at Rossmere Golf and Country Club for a great day of golf. MBNLA member and CNLA provincial representative, David Hinton, and teammates, Michel Roy, Bob Langdon and Michael Ducharme, took home top price with the best team score. Prizes were also awards for the Most Honest Team, Longest Drive-Men, Longest Drive-Women and Closest to the Keg. The putting contest was so competitive it included a ‘putt-off!’

Pesticide ban in Manitoba In June 2014, the provincial government passed a law that affected what Manitobans can use to control weeds on their lawns. In May 2016, our newly-elected PC government announced it would be reviewing this legislation, and opened the topic up for discussion with the general public and stakeholders. MBNLA member David Hinton represented the association and its members through media interviews and provincial government meetings throughout the year. The request for public opinion closed Sept. 12, 2016, and is now being reviewed by the provincial government.

MBNLA strategic plan underway MBNLA is currently working on a strategic plan for the nursery and landscape sector in Manitoba that will facilitate a direction and focus for industry development. This will help guide industry and government investments and ensure opportunities are fully realized. This project has included surveys and interviews with MBNLA members and key industry stakeholders. The final steps of this strategic plan are being completed and will be presented to the members at the next AGM scheduled for Nov. 24, 2016.

Team Manitoba brings home bronze On June 6 and 7, 2016, Team Manitoba converged on Moncton, N.B., for the 22nd annual Skills Canada competition. Sponsored through the Landscape Manitoba Horticultural Foundation, two current students from the Landscape Horticulturist program at Red River College, Tonya Northage and Troy Barkman, worked

Grow16 brought a change in venue, date and a fresh one-day format that drew attendees anxious to network and connect with those in the industry.

34 | NOVEMBER 2016 | LANDSCAPE TRADES

hard and proudly brought home bronze in the Landscape Gardening Competition.

For those in Manitoba who have never seen a national Skills competition, 2017 is your chance. Manitoba will host the event in Winnipeg for the first time since 2004. Skills Canada competitions will be held at the RBC Convention Centre from May 30 to June 2.

Awards of Excellence program winners The MBNLA Awards of Excellence winners were presented during the Awards Luncheon on Feb.

Shaftsbury Park, Kindret Landscaping

25, 2016 in conjunction with Grow16. Winners include Kindret Landscaping for Commercial Construction, Dowhy Design and Landscaping for Residential Construction and Kindret Landscaping for Multi-Residential Maintenance. These projects will be proudly entered in the 2017 CNLA National Awards of Landscape Excellence.

LT

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November 17-18, Green Industry Show and Conference, Edmonton EXPO Centre (Northlands), Edmonton, Alta. www.greenindustryshow.com November 21-23, HortEast, Holiday Inn Halifax Harbourview, Dartmouth, N.S. www.horteast.com November 30-December 2, New England Grows, Boston Convention and Exhibition Center, Boston, Mass. www.newenglandgrows.org November 30-December 2, The Buildings Show, Metro Toronto Convention Centre, Toronto, Ont. www.thebuildingsshow.com December 5-9, International Irrigation Show & Conference, Las Vegas, Nev. www.irrigation.org

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Atlas Polar Company Ltd 18

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Kubota Canada Ltd 15

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Landscape Management Network 20, 21

888-347-9864

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Thames Valley Brick & Building Products 28

905-637-6997

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Unilock Limited 13

800-UNILOCK

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United Agri Products (UAP) 30

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mentormoment

Community commitment After more than 40 years in the green profession, Bob Allen of Allen Horticultural Services in St. Thomas, Ont., has scaled back business to enjoy time with his family and travelling with his wife Ruby. The Allens funded a scholarship in 2014 designed to help mature students transition to careers in horticulture through the apprenticeship program at Fanshawe College in London, Ont. Allen’s leadership experience includes serving on the boards of the Canadian Agricultural Safety Association, Communities in Bloom, the Ontario Horticultural Trades Foundation and serving as president of Landscape Ontario.

What are the keys to success in rural or small town markets?

When we started out in the early ’70s, there was only one other landscape business in town. St. Thomas was a smaller community then, Bob Allen and believe me, if you didn’t meet a customer’s expectations, word spread quickly. So the first thing, of course, is to do business in an honest way and treat every customer — and every employee — with respect.

I’m proud to say we have had customers for 25, 30 and even 40 years. We’ve even worked with some families through multiple generations. And I’d say the reason is the consistent level of quality we provided. On the maintenance end, for instance, we tried to be proactive, and to take care of things before a customer would even bring it up. The little things can make a big impact in customer service.

And the other thing I would mention, is building good relations with other local businesses in our industry. We decided long ago we weren’t going to get into construction work that required large equipment. Over the years there were plenty of customers who would call, looking for something that really wasn’t our specialty, and we were happy to refer them to someone in town who would be a better fit. And down the line, the other companies would often send customers our way, who fit better with us. We were also fortunate to develop great relationships with businesses in our community across a number of industries and services.

38 | NOVEMBER 2016 | LANDSCAPE TRADES

Why was community involvement important to you and your business?

If you want the community to support you, you have to support the community. It really is that simple. However, if you’re going to take part in community building projects or committees, your motivation can’t be to promote your business; people can see through that from a mile away. But if you have a genuine interest in making a positive difference in your community, getting involved in programs like Communities in Bloom is a great way to meet people and to learn.

What defines a great entrepreneur in the green professions?

As a business owner, you have to set the example for your staff and train them so they understand your expectations. Then, you need to give them the latitude to do the job, without micromanaging them to death. Our staff knew that if I had given them a list of things to get done, but I had missed something, they could add it in themselves.

They also knew that if a piece of equipment broke, they could take it to our repair shop and pick up a rental; there’s no sense having a crew sitting around all day because equipment broke.

Another thing to keep in mind is to try to avoid putting all your time and energy into one big customer. I’ve always said that I’d rather have 10 $100-customers than one $1,000-customer. The reason of course is that if the big client — particularly for commercial maintenance work — closes or goes bankrupt, you’ll be in big trouble.

I often tell younger people in the industry that it’s important to allow your staff to have a good work-life balance. We always tried to stick to a set schedule of eight-hour days, and we really didn’t work Saturdays. That way, our staff didn’t get burnt out and they were able to spend quality time with their families or their interests outside of work. I believe they were better employees because of it.

And lastly, and it goes with the other points, the goal of great business owners should be to run their business so that it can run just as well when they’re not there. That goes back to your ability to train employees and to empower them to think independently and LT to solve problems.

If you have a question to suggest, or a mentor to recommend, please e-mail editor@landscapetrades.com.

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