October 2018

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Commissioning hydronic systems The devil’s in the details INSIDE Q Alberta waives onerous hydronic slab OCTOBER 2018

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insulation rules Q Dual flush flow rates too high, says Vancouver Q U.S. rolling back HFC refrigerant restrictions Q Mechanical contractors meet in Whistler

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Q Contents

CIPHEX West Show Issue Departments Hot Seat .........................................4 A deal at last

Industry News ..............................7 Dual flush water savings questioned

Today’s Distribution ....................14 Entering the digital age

People & Places ...........................57 Wholesaler raises $28,000 to fight cancer

Shop Management .....................59 Buy or lease new trade vehicles

Coming Events ............................62 Ottawa hydronics conference announced

Products & Technologies Hot Water Heating ......................20 Heating ........................................29 Tools & Instruments ....................41 Refrigeration ...............................43

Mechanical contractors meet in Whistler Marijuana legalization creates concern

Features

Plumbing......................................49

The changing face of wholesale

14

Adapting to the digital age

Cover: A careful commissioning process will result in an a hydronic system that provides maximum efficiency and comfort. Please see our article on page 20. (Photo by Roy Collver)

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Dwindling resources

37

Nova Scotia’s natural gas reserves running dry

An ounce of prevention

30

Reducing the likelihood of heat exchanger failures

October 2018 – Plumbing & HVAC

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Q Hot Seat October 2018 Volume 28, Number 7 ISSN 1919-0395 Publisher Mark Vreugdenhil (289) 638-2133 ext.1 Cell: (416) 996-1031 mark@plumbingandhvac.ca Editor Simon Blake (289) 638-2133 ext.2 Cell: (416) 574-5867 simon@plumbingandhvac.ca Assistant Editor Leah Den Hartogh (289) 638-2133 ext. 4 Cell: (289) 830-1217 leah@plumbingandhvac.ca Contributing Writers Roy Collver, Ron Coleman, Mark P. Evans, Bill Hooper, Art Irwin, Michael McCartney, Glenn Mellors Bruce Nagy, Greg Scrivener National Sales Manager Mark Tomlin (289) 638-2133 ext.3 Cell: (289) 927-6393 markT@plumbingandhvac.ca Design and Production Tim Norton/Janet Popadiuk production@plumbingandhvac.ca Circulation Manager Dorothy Lai All articles and photos by Plumbing & HVAC staff unless noted.

PLUMBING & HVAC Magazine is published eight times annually by Marked Business Media Inc. and is written for individuals who purchase/ specify/approve the selection of plumbing, piping, hot water heating, fire protection, warm air heating, air conditioning, ventilation, refrigeration, controls and related systems and products throughout Canada.

Marked Business Media Inc. 167 Simcoe Street North, Oshawa, Ontario, Canada L1G 4S8 Tel: (289) 638-2133 Postmaster: Send all address changes and circulation inquiries to: Plumbing & HVAC Magazine, 167 Simcoe Street North, Oshawa, Ontario, Canada L1G 4S8. Canadian Publications Mail Sales Product Agreement No. 43029513. Postage paid at Toronto, ON. Annual Subscription Canada: $40.00 plus applicable taxes, single copy $5.00 plus applicable taxes. Annual Subscription United States: $60.00 U.S. Annual Subscription foreign: $90.00 U.S. Copyright 2018. The contents of this magazine may not be reproduced in any manner without the prior written permission of the Publisher.

A member of: • Canadian Institute of Plumbing & Heating • Mechanical Contractors Association of Canada • Ontario Plumbing Inspectors Association • American Society of Heating Refrigerating & Air Conditioning Engineers • Heating Refrigeration and Air Conditioning Institute of Canada • Refrigeration Service Engineers Society of Canada

A deal at last On Sept. 28 Canada and the U.S. finally agreed on terms for a new North American free trade agreement. The U.S.-MexicoCanada Agreement (USMCA) replaces the previous NAFTA agreement. Commentators report that about 90 percent of NAFTA – a trade agreement that U.S. President Donald Trump labelled a “disaster” – remains intact.

But there are some significant issues.

One would have hoped that tariffs on steel and aluminum imposed by the U.S., along with the Canadian counter-tariffs, would have been removed immediately after the agreement was reached – as a goodwill gesture, if nothing else. However, apparently the U.S. – and the ball is solidly in the U.S. court on this – won’t look at that until the agreement is actually ratified by each country’s elected officials.

Secondly, I think most Canadians were taken aback when the U.S. implemented the tariffs on so-called security grounds.

As two countries that have long been close friends and allies, where our economies and militaries are extensively intertwined, what possible security issue could the U.S. have with Canada? We’re still not sure, but the new agreement does nothing to prevent the U.S. from citing security concerns to implement tariffs in the future.

However, in the end, I think most Canadians and Canadian manufacturers are happy that there is finally an agreement and they can get back to business. When the tariffs come off, it will be business as usual. The uncertainly over whether a deal

would be reached or what it would look like along with the threat of further tariffs, on automobiles, put considerable stress on Canada’s business community and on everyday Canadians who wondered if they would still have jobs. While we may not entirely agree with the path going forward, at least there is a path.

In the HVAC/R and plumbing/ mechanical industries, the uncertainty pushed prices up in some cases. Higher prices will likely stay in effect until tariffs come off. This period of turmoil created real pricing challenges, but some manufacturers and wholesalers managed to avoid increases by absorbing prices to some extent and/ or having enough stock on hand to get through.

And maybe it’s just me, but I find the name of the new agreement curious. USMC is the acronym for the U.S. Marine Corps and is as common in the U.S. as RCMP – the Royal Canadian Mounted Police – is in Canada. While this may not be a “brand new deal” as Trump promised, he certainly got his wish in putting a U.S.-first spin on it.

For C anada, it’s not really an improvement over NAFTA, but thankfully it’s not much worse either. And a long-time friendship is strained.

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Q Industry News

Dual-flush toilets flush too much, says Vancouver Bylaw amendment could make many models obsolete

By Leah Den Hartogh The City of Vancouver plans to change the bylaws for dual-flush tank-type toilets because they are not saving enough water.

The expectation for these toilets is that for every three flushes, one is a large flush and two are small flushes. But this just isn’t happening, reports Chris Radziminski, water design branch for Vancouver, in an email. The Vancouver building bylaw currently allows a maximum flush rate of 4.8 litres per flush (LPF) for all toilet types.

However, in 2014 an exception was made for dual-flush tank-type toilets, permitting a full flush of 6 LPF and a small flush of 4.1 LPF. The new proposal to limit all toilets to 4.8 LPF would eliminate 90 per cent of the dualflush tank-type toilets that are currently on

The Canadian Institute of Plumbing and Heating (CIPH) and the U.S.-based Plumbing Manufacturers International (PMI) dispute the fact that dual-flush tank-type toilets don’t meet performance expectations.

A Canada Mortgage and Housing Corporation study reports that the overall ratio was around 1.56 short flushes to every long flush. Akshay Sharma, program manager for CIPH, reports that this conclusion shows that there is water saving value with dualflush tank-type toilets.

Reduced flush volumes The most recent Vancouver water use bylaw changes, reducing the maximum flow rate of several plumbing products including residential lavatory faucets to 5.7 litres per minute (LPM) and showerheads to 7.6 LPM, came into effect in January 2018.

The new lower volume for dual-flush toilets, along with several other changes, is scheduled to take effect in January 2019.

The new proposal would eliminate 90 per cent of the dual-flush tank-type toilets that are currently on the market from using city water. the market from using city water, say industry officials. Most toilets – including over 2,000 single-flush tank-type toilet models – are entirely unaffected. The city’s proposal will allow the installation of 6 LPF dual-flush tanktype toilets in new construction projects, but only with treated rainwater or clear water waste (i.e. cooling water and condensate drainage from refrigeration and air-conditioning equipment) systems for flushing.

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“They really haven’t allowed the changes made in the 2017 bylaw amendments time to make an impact on their total per-capita water consumption,” noted Matt Sigler, technical director for PMI. Existing products that wouldn’t meet requirements would become obsolete as they could no longer be installed in new construction.

“Retailers again are going to have to restock shelves and account for these changes,” he

Vancouver officials say they aren’t seeing the water savings they had hoped for with dual flush toilets. Perhaps users are confused over which button to push? said. Not enough time has passed for the city to receive proper statistics on how the initial bylaw went, adds Sigler “It takes time to get those results of those reduced flow rate on water and energy consumption. You can’t expect it over night, it all depends on how many new structures are built in the city of Vancouver. It takes time.” Sigler suggests that at least three years would be needed to calculate the total impact.

PMI supports the use of non-potable water for toilet flushing. However, they believe there should be provisions to account for maximum chlorine levels when used with onsite nonpotable water systems. They recommend that a maximum residual chlorine level of 2.5 milligrams per litre. If chlorine levels are too high, some plumbing products can fail.

CIPH would also like to see a set level of 2.5 milligrams per litre.

However, said Radziminski, “The proposed requirement for non-potable water systems were developed in collaboration with the local health authority and are performance based.

No specific type of disinfection is prescribed.

This is the decision of the registered professional engineer who must design the system, and it is his/her responsibility to consider the local context.”

October 2018 – Plumbing & HVAC

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Q Industry News

Mechanical contractors group meets in Whistler Marijuana legalization causing concern among members

By Leah Den Hartogh Around 235 delegates and companions attended the Mechanical Contractors of Canada’s 77th annual national conference at the Westin Resort and Spa in Whistler, B.C. Sept. 19-22.

Typical B.C. weather at this time of year meant it was a cold and rainy event, but that didn’t stop participants from trekking to the Olympic Park to participate in the infamous MCAC Games. At this year’s games participants sawed logs, raced on skis, fired

d % te s 0 0 te

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guns, threw axes, and shot hockey pucks.

Members from MCA Saskatchewan took home the trophy for this year’s competition.

The conference kicked off with the opening backyard barbeque outside the Westin Resort where members dressed in their best lumberjack clothing as the new “voice of God,” Dan Milroy (Bradford-White Canada), commenced the conference.

Over the next few days, members participated in panel discussions, wine tastings, general meetings, business sessions, and general sessions. Right after the opening breakfast Mark Gungor presented his “Laugh your way to a Better Marriage” seminar which, as promised, had everyone in the filled conference room

laughing and giving knowing looks to their spouses.

Pot legislation in Canada B.C. lawyer Chris Munroe spoke about marijuana in the workplace, explaining what rights employers have over their employees when it is legalized in Canada Oct. 17.

Munroe began by informing the crowd that the “sky isn’t falling.” Employees who were already smoking before legalization will continue with the practice, he expects.

That didn’t leave the members in attendance more hopeful about what to do to stop their employees from going to a jobsite “stoned.”

Many were concerned about the connection of smoking marijuana and addiction, and what they would be able to do in terms of terminating someone claiming to have an addiction.

Munroe suggested that employers set up a policy for all drugs similar to that is in place for alcohol. Elements would include:

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Best practices

Everyone dressed the part during Lumberjack Night at the MCAC annual conference. purpose, applications to both recreational and prescription drugs, differentiations between safety sensitive and non-safety sensitive roles, prohibiting impairment, setting out roles and responsibilities of managers and employees, requirement to self-disclose an addiction and/or prescription, and consequences for breaching policy. The audience heard court case examples as to how to make sure that they aren’t put into a bad situation because of the new legislation.

One panel that drew a larger crowd concerned best practices in mechanical contracting.

A few issues were brought forward by the panel members. One that stuck out was the issue that installers don’t know exactly what they are installing “for instance, they know it’s a copper pipe, but they don’t know if it’s not a water designated pipe,” remarked Tim Padfield, Alberta director of MCA and owner of Pad-Car Mechanical, Medicine Hat, Alta.

The industry skills shortage also came up.

This brought about a discussion on whether or not it is best just to simply get more people in the trades. Rod Yeoh, principal at Dialog, Vancouver, B,C., said the industry needs more intelligent people who go into the trades because they are passionate about it, rather than seeing it as a last resort option.

Changes to MCAC This year, MCAC saw several changes. It was the first event for MCAC under CEO

Pierre Boucher after former CEO Richard McKeagan retired in June.

Members elected Jack Bavis, G.J. Cahill, Mount Pearl, Nfld., as president, replacing Dave Flamand, Peak Mechanical Partnership, Saskatoon, Sask., who has completed his oneyear term.

Three different categories of awards were presented. The Doug Crawford Memorial Award went to Milroy. Lifetime Awards were presented to Robert Hoare, Adelt Mechanical Works Ltd, Tom Vincent, president of Atlantica Mechanical Contractors Inc., Dartmouth, N.S., and James Derksen, Derksen Plumbing & Heating, Winnipeg, Manitoba. Gaetan Beaulieu, Beaulieu Plumbing & Mechanical Inc., Edmundston, N.B., received the Lloyd MacLean Memorial Award for his contributions to the organization.

The next MCAC national conference will take place on Oct. 2-5, 2019 in Nashville, Tennessee at the Hilton Nashville Downtown.

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Q Industry News

Alberta lifts onerous slab insulation requirements Extra insulation provides little benefit in hydronic heating applications, says Standata

Alberta has waived onerous underslab insulation requirements that brought the hydronic heating industry to a virtual standstill when they came into effect in November 2016.

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published a Standata (14-BCV-019) that provides a variance to National Building Code Regulation 9.36 that increased underslab insulation requirements for radiant floor heating systems from the one inch or R-5 required by the CSA B214 hydronic installation code to R-16 or about four inches.

The variance requires a minimum RSI 0.88 (R-5) for a radiant floor heating slab in contact with the ground where the floor is fully below the frost line and RSI 1.32 (R-7.5) where the floor is above the frost line. Standard industry practice has been to install 1.5-inch (38 mm) R-7.5 insulation. “ There is sufficient evidence that indicates that the current underslab insulation code provisions are excessive and jeopardize the availability of hydronic heating as an option for Albertans,” the Standata states. “ This type of system has become increasingly popular in Alberta for homeowners who want added comfort and control in their heating zones, savings through lower heating bills, and a decrease in their environmental impact by making smart green building choices.”

The additional insulation provides little increase in energy efficiency. Going from R-5 to R-16 reduces heat loss through the slab by only 1.27 percent but makes the insulation cost about 50 percent of the installed cost for the radiant floor slab, reports the Standata.

As well, the thick insulation can result in structural issues that can only be dealt with through costly modifications to building design.

The variance does not remove the insulation requirement from Section 9.36 of the Alberta Building Code, but it allows, as an alternative, the reduced insulation. The variance covers the entire province.

Alberta Municipal Affairs officials are also encouraging the federal National Research Council (NRCan) to change the underslab insulation requirements in the National Building Code to “allow for hydronic heating installations while also supporting Alberta’s energy efficiency goals.”

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Q Industry News

EPA proposal would relax HFC refrigerant restrictions The U.S. Environmental Protection Agency has announced that it plans to roll back restriction on the use of HFC replacement refrigerants that took effect in 2016.

Issued Sept. 18, the proposed rule, Protection of Stratospheric Ozone: Revisions to the Refrigerant Management Program’s Extension to Substitutes, will revisit the Agency’s recent approach to regulating appliances containing substitute refrigerants such as hydrofluorocarbons (HFCs) by proposing to rescind the November 18, 2016 extension of the leak repair provisions to appliances using substitute refrigerants.

If finalized as proposed, the new rule would rescind the leak repair and maintenance requirements at 40 CFR 82.157 for substitute refrigerants. Therefore, appliances with 50 or more pounds of substitute refrigerants would not be subject to the following requirements: • conduct leak rate calculations when refrigerant is added to an appliance,

• repair an appliance that leaks above a threshold leak rate, • conduct verification tests on repairs, • conduct periodic leak inspections on appliances that exceed the threshold leak rate, • report to EPA on chronically leaking appliances, • retrofit or retire appliances that are not repaired, and • maintain related records.

The use of HFCs were restricted because they are an ozone depleting substance. The EPA says the rule would save industry about $39 million annually in regulatory costs. But the rule also would have the climate impact of an additional 642,000 cars on the road.

HFCs have a warming potential thousands of times more potent than carbon dioxide, reported Greg Zimmerman, executive editor of Building Operating Management magazine (www.facilitiesnet.com).

Q Letters

Green technology unreliable, expensive to repair, says reader Dear Editor: I’m sorry, but I just can’t “tow the line” when it comes to manufacturers making these ultraefficient residential heat pump systems and air conditioning units.

Manufacturers have been making paper thin evaporator coils for several years now with disastrous results. They simply don’t last.

They leak like a garden sprinkler after a couple of short years and they blame the installer or chemicals in your household carpet that corrode the coils. Wow! The all-aluminum evaporator coils are next to impossible to repair, but the HVAC rep. will tell you its possible to repair them.

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Then there’s the variable speed evaporator fan motor that costs three to four times the amount of a regular PSC motor when it burns out. And they do burn out regularly. Add to this the variable speed compressor that never lasts and you have one unreliable, untrustworthy, expensive piece of junk in your home. The first time the system burps, all your energy savings go down the toilet while you pay two to four times for a new compressor, evaporator motor, evaporator or control board.

I have a Red Seal journeyman ticket in HVAC and know what I am talking about.

I am registered with the Ontario College of Trades. The entire industry must clean itself up and make reliable units and charge much less for replacement parts to win back customers who are constantly being screwed by “green technology”.

Mike Mineau Schreiber, Ontario

October 2018 – Plumbing & HVAC

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Q Today's Distribution Emco’s Aquavato showroom in Toronto stocks premium brands for interior designers.

The changing face of

DISTRIBUTION

Canada’s wholesalers gear up for the digital/online age

By Bruce Nagy

O

ne-time body-builder Arnold Schwarzenegger beat formidable competitors to win numerous body-building crowns and achieve fame. But he wanted more and moved to the United States to re-invent himself as a movie actor, but it wouldn’t be the last career change. He went on to become governor of California in 2003.

A similar rejuvenation is currently underway among leading wholesalers in the

14

Plumbing & HVAC – October 2018

plumbing and HVAC/R business. They’re facing new threats from E-commerce giants like Amazon, while continuing to battle bricks and mortar performers like Home Depot and Lowes/Rona. They’re planning to weather the storm, reinvent their business model, and add sophisticated online and offline capabilities.

And they expect to emerge stronger and better.

Founder Jeff Bezos has a net worth of about $156 billion, a testament the deep understanding his team has developed in the field of E-commerce.

Amazon specialist and HVAC consultant Bruce Merrifield calls the Amazon construction portfolio “a highly customercentric value channel.” It includes product reviews, easy to find advice from industry experts, multimedia resources, chat and telephone support, and a Prime member loyalty program offering bonus points for watching product videos.

The Millennial effect

Big web investment

It won’t be easy. Millennials are moving into procurement positions and they’re online savvy.

The internet comes naturally to them. Amazon is building numerous B2B web properties and pursuing transaction dominance in high ticket, high margin categories. They’re focusing on items such as furnaces, that are purchased in large volumes every day.

Each year Amazon invests another $40 million to improve its web properties, with an army of top E-commerce analysts testing and refining its models and algorithms. They identify the most profitable top sellers, then develop Amazon brand knock-offs, delivered to the contractor for a few hundred dollars less.

The Amazon brand is already ranking among

www.plumbingandhvac.ca

Wolseley Oshawa, Ont. branch manager Paul Duncan, left, serves a customer.

kinds of information found online. You need to combine some electronic skills with some industry experience to determine what is going to work for your application.”

Time and service

the “most trusted” in several categories. Some say Amazon brand product receives preferential treatment on its sites and the company’s legions of lawyers fight unfair competition accusations.

Once a Millennial purchasing agent places an order for 175 faucets, the order is efficiently picked by robots and shipped to the desired end point. Delivery progress is, of course, easy to track online.

“There is a lot of talk about what Amazon is doing in our industry. Some might say it’s overhyped, but I think a little paranoia could be a good thing. We’re behind on digital processes,” remarked Sean Kelly, division vice president, Western Canada Plumbing, for Emco Corporation, London, Ont. “I think the proliferation of new technologies and energy efficient products gives us an advantage,” says Kevin Fullan, general manager – plumbing & HVAC/R, Ontario & Atlantic, for Wolseley Canada, Burlington, Ont. “Not everyone can assess these new entries by sorting through different

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“On the other hand, at the end of the day, the Amazon customer might become mainly price-driven,” added Kelly. “So, we’ll continue to think of ourselves as a partner that can save contractors time.”

Online companies can provide product, but the role of the traditional wholesaler is much more than that and the service aspects are not easy to duplicate.

“We can provide project management support. For example, we can supply plans and layouts with hydronics products, and then package them in the order in which they will be used.” said Kelly. “If a buyer ships enough toilets and faucets for a whole building, they may find there’s no storage on the site for that product.

Our truck can arrive when the crane is ready to move skids to the floors where they’re needed.”

“Delivery is going to be more important than ever and understanding who the customer is and our cost to serve them will be too,” says Fullan “I think we’re beginning to work more closely with contractors and manufacturers and in some cases, we can have products shipped directly from the manufacturer to the job site.

“The relationship between manufacturers, wholesalers and contractors is strengthening because it needs to be stronger. We’re sharing data with manufacturers which benefits both of us, and we’re discovering a lot of great product information and learning tools on manufacturers sites that can be mined to better serve and educate our contractor customers.”

Online lacking in expertise “It’s still a service business. If we hire the best talent and they’re knowledgeable enough to serve contractors better than anyone else, we’re providing the most important part of the value equation,” said Joe Senese, vice president, operations, Groupe Deschenes, Etobicoke, Ont. “Building relationships is still an important part of this market. It’s not just about products. In fact, installers are inundated with products. They have projects to plan and they need help. Oftentimes we know the right product solution. We have sales reps in certain segments plus generalists. You need some specialists. The one size fits all approach has never really applied in our industry.”

“And expertise is becoming even more important with numerous retirements and a skilled labour shortage. We need to hire bright new people in the right demographics, Please see ‘Millennial’ on page 17

October 2018 – Plumbing & HVAC

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Q Today's Distribution

Millennial contractors bring new expectations Continued from page 15

and then manage the transfer of knowledge from retiring veterans,” he added.

“There are two kinds of expertise that are becoming important,” says Fullan. “Technical knowledge and online skills. We are trying to recruit and retain people who have both of these.”

“For a while we developed some online training tools for people to do some selftraining, but it doesn’t work for everybody. To build productive relationships I think we have With specialized to master both the electronic and in-person products like challenges. It’s hard to build a relationship this Kohler Numi via the computer, but on the other hand the toilet, it helps to online world offers some obvious strengths in see the product to communication and supply chain efficiency.” learn its features Although it’s difficult to argue the and installation importance of expert solutions, relationship procedure. building, and high-level service, these may not be the exclusive domain of in-person interactions. What the customer needs is one thing. How it is obtained could be moving online, in the form of comparison guides, expert primers, chat services staffed by semi-retired specialists, wellproduced installation videos, webinars, taped classroom seminars, and manufacturer animations.

with purchases. Other online interactions, not controlled by sellers, include discussion forums, and blogs with reader comments. This ‘more democratic’ tradition is accepted Internet culture. Modern players must learn to turn it to their advantage.

Wholesalers acknowledge that their traditional business is changing significantly. “Whether through online order entry or E-commerce, the prediction is that 30 percent of the business will go online,” noted Kelly.

“Some of this will be retained through our own sites and some of it will go to players like Amazon. We will continue to work at providing the very best service to the other 70 percent of the market. We’re social beings.

We’re not wired to stay home. I have faith in the human condition.”

“There is a slow changing of the guard taking place in our industry as some of the older people retire and are replaced by younger generations,” says Fullan. “The older guys might come in with a coffee in one hand and their order scrawled on a piece of cardboard in the other and shoot the breeze for an hour in the morning. Those days may be coming to an end. Younger people send the order electronically the night before and contractor owners want the crews to pick it up and go.

Please see ‘Keeping’ on page 18

New markets While touting service-based strength in the face of the online threat, wholesalers are also hedging against future disruption by expanding into completely new, albeit related, businesses.

Wolseley has established Kitchen & Bath, Taps and other branded plumbing showrooms. For Groupe Deschenes it’s Mondeau, and for Emco it’s Aquavato and Ensuite. These are high-end kitchen and bathroom showrooms located in larger urban centres. They’re aimed primarily at interior designers, but also at anyone interested in premium brands and unique plumbing products. They’re staffed by design experts who can provide full interior design consultation and support.

For Emco these showrooms are supplied by a dedicated warehouse with national distribution.

Online education Still, the bulk of the business is likely to remain with contractors – Millennial-age contractors. Ben Landers, a digital marketing expert, wrote recently in Sales and Marketing Magazine that: “Mobile buyers prefer to self-educate…81 percent of them do research online before they have much…commercial intent.”

According to Landers, genuine online reviews correlate very highly

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October 2018 – Plumbing & HVAC

17

Q Today's Distribution

Keeping the business as it goes online Continued from page 17

The local advantage

We’re trying to serve both kinds of customers and it really is a challenge to get it right… We must continue evolving and changing. We may even need to accelerate our evolution.”

“Those who don’t adapt will find that their market is getting smaller,” said Senese.

“We’ve been slow to create the omnichannel we’ll need, but we’ve invested in technology in the back end at the warehouse. We know it’s critical to be as efficient as possible with modern warehouse management, GPS, logistics technology, loading mechanisms...”

He describes the company as sharing and analyzing big data with selected manufacturing partners, and it is well entrenched in preparations for full online ordering, job site deliveries and emphasizing its local area advantages.

“If we think about the essential capabilities of a distributor in the digital age, we recognize that community…is local,” remarked Mark Dancer, a Fellow with the Institute for Distribution Excellence of the National Association of Wholesaler-Distributors (NAW), Washington, DC. Distributors can offer “a physical space where products can be explored, experienced…They can help with installation, training and troubleshooting.”

Desco hosts ‘lunch ’n learn’ seminars on new standards and codes, local requirements, new kinds of wall hung instantaneous water heaters, and product choices that impact space planning. They’re doing online marketing and posting how-to videos. It’s a different way of operating, but it still comes back to creating value for customers.

Schwarzenegger also reverted to his core

Models C95 & C140 Condensing Combination Boiler

18

Plumbing & HVAC – October 2018

competency. After two terms in state politics he returned to the movies and enjoyed success almost immediately, despite being in his 70s.

In 2018 he underwent emergency open heart surgery. Frightening for a while, but again he survived. So too will Canada’s plumbing and HVAC/R wholesalers. According to reports, after he stabilized, his eyes fluttered open and he said to his family: “I’m back.”

Bruce Nagy is a Toronto writer, author of more than 150 articles on clean energy.

His new book, ‘The Clean Energy Age’ will be released on Amazon by Rowman & Littlefield in 2018. He can be reached at bruce.nagy@rogers.com.

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Q Hot Water Heating

Commissioning hydronic systems

Good start-up procedures will keep customers happy and minimize callbacks

By Roy Collver

I

t’s the start-up time of year again with new projects completed and existing systems to get ready for the heating season. A proper start-up and commissioning process is a great opportunity for the contractor to show their customers that they hired the right people.

There are many levels one can offer a client depending on their needs and budget, from starting-up, testing and documenting the performance of a single piece of equipment, to a methodical and complicated full system commissioning and proving process, overseen by a commissioning authority – usually an engineering firm. ASHRAE has two documents available (for a fee, of course) that provide a painful but necessary amount of detail and instruction on the procedural and technical details of commissioning. One can make a whole career out of this process.

ASHRAE Guideline 0 is a 54-page document titled “The Commissioning Process”, and their Guideline 1.1 is a 150page document titled “HVAC&R Technical Requirements for The Commissioning Process”. This article will not be dealing with this full-blown process for obvious reasons, but if you have trouble sleeping, they are a great read and help you understand how things like hospitals and aircraft carriers get built and handed over to their owners.

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Plumbing & HVAC – October 2018

A proper start-up This article deals with HVAC&R equipment and more modest system start-up and documentation. A start-up may be part of a formal commissioning process, or a standalone procedure. The reasons for doing a proper startup are as follows: Contractual obligation – some customers demand nothing less than a certified factory technician in the direct employ of the manufacturer to perform and document a start-up, while others just require a detailed checklist be completed by a licensed trades

If they still balk, then you should politely decline the work as they are asking you to take unacceptable risks. person. These details should be formally spelled out in tender documents prior to bidding on a contract, or simply referred to verbally when a customer engages your services.

Best practice – Developing a routine to

prove equipment is performing safely and to specifications is simply part of the job, and it’s not over ‘till the paperwork is done.

This not only means equipment proving, but also includes compilation and turn-over of equipment literature.

Cover your butt – Being able to provide a paper trail that shows how the equipment was tested, and that it was turned-over to the owner in a proper and safe working order, can stop future disputes. Take lots of pictures and file them as well. We are living in an increasingly litigious society.

Show off your skills and market your expertise – Many trades people show up, perform some task, charge the big bucks, but are unable or unwilling to explain exactly what they did. Don’t be one of them. Unless the

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Some building owners require the manufacturer to be present at or conduct commissioning. Ian Bowles of IBC Technologies tests new boilers at Springwood Elementary School, Parksville, B.C.

A digital manometer is connected to the boiler gas valve inlet pressure tap. customer really doesn’t care, take the time to at explain what you did for them. Go further, and provide them with documentation.

Set a good example and raise the bar – If comprehensive start-up and documentation practices become more of an industry norm, it will make it that much harder for fly-bynight operations to thrive.

Don’t make mistakes, be sure of yourself and sleep soundly – “Did I check that high limit? Am I sure the vent was working properly? What was the CO reading?” Prevent these and many other questions from popping into your head at night by developing a routine, and always doing things by-the-book.

Step one is to understand exactly how much detail the customer expects. There are things you should always do and then there

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are things that you can offer the customer as optional. When you price out a job, you should automatically include the cost of the “always do” stuff and explain to the customer what they will be getting.

If the customer doesn’t want the “always do” stuff, explain to them that these are code and safety requirements and are not optional.

If they still balk, then you should politely decline the work as they are asking you to take unacceptable risks.

Critical steps Those things that constitute a “proper” start-up, will always include: • Get the necessary permits and inform code officials when you will be ready for inspection.

• Read and understand installation and operation manuals for each piece of equipment and look for anything that may be unique.

• Ensure that the installation complies with the requirements. Pay close attention to venting details, piping and wiring schematics, clearances, etc.

• Perform the start-up exactly as required, ensuring all equipment performs to specifications. Make up a checklist if the manufacturer hasn’t provided one. (It is useful to come up with a generic checklist of your own design with company logos.

You may want to mark each item as “code requirement”, “manufacturer requirement” Please see ‘Optional’ on page 23

October 2018 – Plumbing & HVAC

21

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Q Hot Water Heating With today’s test equipment, the contractor’s smart phone communicates with the combustion analyzer and the phone mirrors the display, making it easy to download.

There is a considerable amount of instrumentation needed for commissioning. Note the combustion analyzer on the floor.

Optional commissioning and maintenance programs Continued from page 21

Additional paid work

or “company requirement” to show your customer how you go above and beyond.)

• Ensure that your test instruments are working properly and are calibrated. Some of the newest equipment can upload test data directly to a smart phone or a laptop, so you can provide files to the customer.

• Write everything down during set-up, start-up and testing – follow the checklist and fill it out as you go so you don’t forget anything.

• Gather the manuals together along with copies of your checklists and any printouts (combustion tests and such). You may have to do some component labeling and “as-built” drawings as well. Present them to the owner and review how the equipment works, differences from previous equipment, and maintenance requirements.

Here are some options you can offer your customer: Complete system review and recommission – you may be replacing just the boiler, but what about the rest of the system?

This is an escalating process – bill for your time accordingly.

Step 1 is a complete system assessment where you climb all over the place looking into nooks and crannies and note what is there and check to see if there are any obvious problems. This first step is billable, but you should be gentle if you are only giving them a verbal report where you advise regarding further detailed examination, and how much each option might cost.

Step 2, a detailed examination, requires testing everything, not only to see if it is simply working, but also to prove how it is performing and how everything is working together or not (don’t forget exhaust fans, HRV’s and such).

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Step 3 – provide documentation for everything – the internet is a great resource as you can often locate old I&O and maintenance manuals and download them for free.

Step 4 – put together “as-built” drawings of their system.

Step 5 – put together a maintenance manual for their whole system – filter change schedule, lubrication, cleaning, service checks – the whole meal-deal.

Enhanced documentation packages: With company computer expertise, you can offer to transpose everything to a digital format and provide electronic files or hard copy print-outs as a bound manual.

Planned maintenance programs: Discuss options for planned maintenance. You should provide a hand-out from your company of various programs detailing what is included, frequency and cost.

Insurance possibilities: Larger HVAC&R companies may self-finance equipment insurance plans, points programs, customer membership programs and the like. Smaller firms can work with third party underwriters or manufacturer insurance programs.

These programs can help you retain your customer base in long-term relationships and can enhance the value of your company when the time comes to sell.

Roy Collver is an author and consultant on hydronic heating based in Qualicum Beach, B.C. He can be reached at hoth2o@shaw.ca

October 2018 – Plumbing & HVAC

23

Q Hot Water Heating

A PROPER

STARTUP

An error code on the boiler control can be a good thing. (Roy Collver photos)

• Do a visual inspection (and push-pull-wiggle tests of sketchy looking components) to make sure the installation conforms to the manufacturer’s installation instructions and all code requirements. Pay special attention to the venting system. If you did the installation and are confident in your work, you may choose to skip some of these checks.

• Turn the water feed on to the hydronic system and check the water pressure gauge to ensure the system is pressured to at least the minimum required by the boiler.

Adjust fill pressure as required. If pressure continues to creep up, the pressure reducing valve may need to be serviced or replaced.

Commissioning today’s modulating condensing boilers

By Roy Collver In the past few pages we looked at the reasons for creating a commissioning procedure for space heating boilers and how that could benefit both your business and your customers. So, what exactly do we do to start and commission a new gas fired modulatingcondensing (mod-con) boiler?

Of course, it almost goes without saying,

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make sure you or the person doing the work has the right training and licenses to do the job safely. Following is the typical procedure: Like many things, the job starts with a look at the installation and operation (I&O) manuals. You are looking for any unusual or special procedures required for the particular boiler that you are working on. As well, you are looking for a start-up section and a start-up checklist.

• If no checklist is in the manual, make one up yourself – the list should include check boxes or comment lines for the items listed below.

I would strongly suggest you provide this list to the boiler manufacturer for comment and get them to help you make up a checklist, they may disagree with some things.

If you did the installation and are confident in your work, you may choose to skip some of these checks.

• Make sure the condensate trap has been filled.

• Turn the thermostat down, or otherwise make sure there is no call for heat.

• Make sure the gas is turned off at the appliance shutoff valve.

Please see ‘Focus’ on page 27

October 2018 – Plumbing & HVAC

25

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Q Hot Water Heating

Focus on the combustion analyzer readings Continued from page 25

• Turn on the power to the boiler – displays or lights should come on.

• Go through the boiler control settings and make sure they are set to appropriate values for the application -- you will need to refer to the manual at this point if you are unfamiliar with this particular boiler.

• Make sure any mechanical aquastats, highlimits or other safety devices have been set properly and any safety reset buttons have been pushed.

• Turn up the thermostat or otherwise give the boiler a call for heat.

• Check that the boiler pump comes on and turn on any other pumps in the system and leave them running.

• Do the same with any zone valves, making sure they are in the open position – you want to make sure the boiler has a load to dump its heat into once it starts up.

• Turn off the water supply to the hydronic system and watch the pressure gauge to make sure there is no drop in pressure (which would indicate a leak). If all is well, turn the water feed back on again.

• While you have been doing the last three steps, you should have heard the boiler’s combustion fan start up and the boiler should have tried to fire. It will now likely be locked out due to successive failures on trial for ignition – there will normally be an error code displayed (this is a good thing). Check the manual to see how to reset the boiler to try again, usually by turning the power off briefly.

• While the power is off, ensure that the gas lines have been properly purged and then connect a manometer securely to the inlet test port on the gas valve.

• Slowly turn on the gas and check to make sure there are no leaks and monitor the manometer reading to ensure the gas pressure is within the min/max pressure requirement at regulator “lock-up”.

• Turn on the power again and watch closely to observe the boiler as it fires up for the

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first time.

• Monitor the boiler outlet temperature to make sure it doesn’t shoot up quickly, if it does, you either have a flow problem or there is insufficient load on the system and you need to resolve this before proceeding.

• Monitor the manometer reading to make sure the pressure remains steady and within the acceptable pressure range specified.

• Shut down again and connect a combustion analyzer to the venting system after making sure it is “zeroed” and functioning properly.

This is where quality equipment like this combustion analyzer pays for itself.

• Re-start the boiler and focus on the combustion analyzer readings while simultaneously monitoring the gas pressure, water pressure and boiler supply and return temperatures. 1) Test the combustion chemistry and flue temperature at low fire, medium fire and high fire. If the combustion test results are outside of the range specified by the boiler manufacturer in the I&O manual – you will need to adjust the gas/air mix as detailed in the manual. 2) If the water pressure climbs up more than 25 percent as the water temperature climbs, you need to check the expansion tank to ensure it has been properly charged. 3) If the gas pressure drops more than 25 percent at high fire you need to check the gas supply regulator or piping capacity. 4) If the Delta T across the boiler increases to more than

40°F you need to check the flow rates through the boiler and if both the supply and return temperatures climb rapidly. you need to provide a bigger load for the boiler in order to continue testing. Otherwise, the boiler will trip off on high limit.

• Check flame current readings to ensure they are within specifications. Turn the gas supply off and ensure the boiler shuts down on flame failure.

• Physically test all safeties to ensure shutdown of the boiler when they are tripped.

• Check the venting system to make sure there is no leakage of flue gasses – a soap bubble test usually works for this.

• Block the exhaust vent and make sure the boiler shuts down with a blocked vent error – repeat with the air intake.

• Check all zones to make sure heat is being delivered and there are no blockages, air locks or component failures restricting flow and heat delivery.

• Check the condensate drainage system and make sure the trap is still full and the condensate is free flowing to drain.

• Remove the call(s) for heat and make sure the boiler shuts down in an orderly fashion, the pumps, valves and fans shut down in good order, and the system drops into stand-by mode ready for the next call for heat.

Of course, you have been checking this all off and documenting values as you go and now have a completed checklist – signed and dated – a copy of which you will leave the customer along with the system manuals and documentation. The whole procedure should normally take about one to two hours depending on the complexity of the system.

This is a simplified start-up with no balancing performed and minimal control system proving or adjusting.

To take it one step further, you should allow the system to cycle on its own a few times and check Delta T readings zone by zone to make sure controls are set properly and there are no conflicts. This may all seem like too much to do, but if you have been starting up new modcon boilers and missing any of these steps – you have likely been getting call-backs. As you gain experience with a particular boiler model or class of boiler, you will be able to do this much faster and with more assurance.

October 2018 – Plumbing & HVAC

27

Q Heating Efficient condensing fire tube boiler Navien has introduced its new NFB series highefficiency condensing fire tube boilers, available in two models (NFB-175 and NFB-200). The heat exchanger is form-pressed and robotic laser welded to minimize the number of wear points. Oval shaped tubes within the heat exchanger contain internal turbulators designed to improve both the heat transfer rate and the structural integrity of the assembly. Additional features include, built-in zone controllers, 10 to one turndown ratio, extremely low NOx levels, and remote accessibility when installed with the company’s NaviLink Wi-Fi control system.

Navien www.navieninc.com

Simplified controller The new MPC Series controllers from Tjernlund Products replace the company’s CPC-3 controller. The new version offers installers several benefits including reduced cost, simplified plug and play installation, two-button set point adjustment, an integrated pressure transducer, and a choice of model (MPCI) with burner interlock and model (MPC) without burner interlock. MPC models can be used directly with most EMC powered fans or in conjunction with a VFD to control the speed of three-phase motor powered fans.

Tjernlund Products www.tjernlund.com

Efficient air handler motor Radiator thermostat The radiator thermostat, invented by the founder of Danfoss, Mads Clausen, is celebrating its 75th birthday. In that time, Danfoss has produced about 350 million. In homes with hydronic radiators, they effectively create a zoned system by allowing the occupants to adjust the heat for each radiator to provide the desired comfort level in each room.

This also results in substantial energy savings.

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www.noritz.com/nrcb October 2018 – Plumbing & HVAC

29

Q Heating

An ounce of

PREVENTION I

n my last article I talked about the failed heat exchanger and really focused on communication with the end consumer. This article will focus on the technical side of the heat exchanger dilemma.

We talked about “prescription without diagnosis is malpractice” and today we are going to focus on “an ounce of prevention is worth a pound of cure”. What I mean to say is that many times if the furnace was properly commissioned at time of light up, many of the situations we are seeing today would not be as frequent. We do, however, have a second chance to change the future IF we test gas pressures and airflow on every maintenance visit.

All too often the technician that does installation and start-ups has not been introduced to manifold pressure testing and temperature rise testing, then to compound things, we send out junior techs to do “precision tune-ups” without the knowledge or the tools to perform either such vital test.

Just like a doctor checks your vitals, so should we check the blood pressure (gas) and lungs (air). Failure to do so can cause premature health issues for the system.

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Plumbing & HVAC – October 2018

Making heat exchanger failures an infrequent occurrence

By Glenn Mellors

Blood flow Consider the gas valve to be the heart of the system, providing the correct amount of gas through the arteries to the burner section and into the combustion chamber.

All too often the technician that does installation and startups has not been introduced to manifold pressure testing and temperature rise testing…

Blockages coming into the gas valve can cause significant issues. I once saw technicians and design engineers scratching their heads in disbelief that an appropriately sized piece of equipment could not satisfy the heating load of a building, only to find out that the gas flow was restricted between the meter and the gas valve, in this case, by a spider web. Proper

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Doing everything right from the get-go can save a lot of headaches later.

Use a manometer to check airflow and static pressure. commissioning would have caught that in an instant.

The test Tools required: manometer, rubber tubing and test-port adapters. Time to perform – 10 minutes or less.

Each gas appliance should have a rating plate on the inside of the door panel that will identify operating pressures for either natural gas or propane. On two-stage appliances there will be a dual rating on the plate.

We need to check the pressures in two places, incoming and outgoing on the gas valve, depending on old style or new style.

The test ports are usually on the opposite ends on old style or opposite ends on the top of the

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new style gas valves. Once we locate the test ports we attach one end of the rubber tubing to the incoming gas port via adapter and the other end to our manometer. Holding the manometer at eye level, we read the device for inches of water column.

What we are looking for here is a reading of five to 10 inches of water column for NG and 11-13 inches of water column for LP. If the range does not fall within the parameters outlined, stop there and diagnose problems from the supply.

If the range is nicely inside the parameters, then we can move onto checking the manifold pressures (the opposite end of the gas valve).

To test manifold pressures, we will again attach the adapter end to the hose and the

other end to the manometer.

In this instance we should set the pressure to 3.5 inches WC +/-.3 of WC +/-.3 for NG and 10 inches +/-3 for LP. When setting pressures on two-stage appliances, ALWAYS set the higfire first and low-fire second. ALWAYS refer to manufacturer’s specifications when setting pressures. Taking the time to perform these simple steps will add years of life to the system and you have delivered service excellence!

The lungs The second set of vitals is the lungs of the system, better known as the heat exchanger.

Please see ‘furnace’ on page 33

October 2018 – Plumbing & HVAC

31

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Q Heating

Step 1 in the diagnosis is to make sure the gas valve is functioning properly.

A furnace needs to breathe Continued from page 31

And just like our lungs, the heat exchanger requires clean filtered air; the same amount of air coming in must go out with a small amount of resistance, and a temperature exchange to stop the lungs from overheating.

Conditions That Affect Duct Static

Imagine having a mask over your face in a sand storm and the more time you spend there the thicker the sand collects on the mask and the harder it gets to breathe.

The same holds true for your furnace. The obstructions are not limited to a dirty mask (filter), but perhaps lack of return air caused by undersized ductwork, or an obstruction such as furniture and beds blocking return air grills, a dirty or oversized A-coil or a lack of turning vanes. Too many obstructions not only can kill a fan motor, but over stress a heat exchanger.

Static pressure Any resistance to airflow is considered static pressure; in the case of a furnace it is important to test for and correct static pressures issues before they damage system components like motors and heat exchangers.

There is a simple test using the same manometer (or magnehelic) we used for gas pressures, only this time we are going to use two rubber hoses. First, we need to put a small hole in the supply and return duct three feet from either side of the system. We then

There are numerous things that can boost the static pressure.

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Please see ‘Provide’ on page 34

October 2018 – Plumbing & HVAC

33

Q Heating

Provide service excellence with a thorough test Continued from page 33

connect one end to the return air duct and the other connects to the supply air duct (above and coils or IAQ products) and the reading will indicate the true static pressure. We don’t want to see anything above 0.5 inches of WC.

Taking the temperature Using the same holes that we made to check for static pressure, we are going to insert a thermometer into, first, the return end of the ductwork and, while the system is on the heating cycle, wait approximately 60 seconds, and then on a piece of paper record the temperature shown on the thermometer.

Now we are going to insert our

CFM =

BTU Output 1.08 X Delta T (temp rise)

A clean bill of health

thermometer into the hole that we created on the supply side of the ductwork and, while in mid heating cycle, allow 60-90 seconds for a proper reading to occur. While still inserted, record the temperature on the same piece of paper as before.

Now remove the thermometer and apply foil tape over each hole created (plugs if available).

Now take the hottest temperature and subtract the lower temperature and the answer or Delta T is what is referred to as temperature rise. The furnace door will have the desired temperature rises by stage and you will need to adjust fan speed either up or down to correct the Delta T as specified by manufacturer.

Here is the formula for calculating furnace airflow

By performing the above-mentioned steps and making the necessary adjustments you have taken the steps to giving the system a clean bill of health and, as for you, you have achieved another level of service excellence!

Glenn Mellors was born into a plumbing family and started in the industry in 1973. He entered the HVAC side of the business in the 80s, working in wholesale, and then joined Lennox in 1992. In 2008 he joined the ClimateCare Cooperative Corporation, an Ontario contractor group, where he is director of training and implementation. Glenn can be reached at gmellors@climatecare.com.

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Plumbing & HVAC – October 2018

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Q Heating

Dwindling

resources

Maritime natural gas users grapple with future as Sable Island project winds down

Nova Scotia and New Brunswick face the end of the domestic supply of natural gas. The industry is grappling with what happens after the ExxonMobil Sable Project ends in 2020.

Homes and businesses that use natural gas in Nova Scotia can expect price hikes when the province’s offshore supply dries up in the next two years, reports the region’s pipeline company. Mike Whalen of Maritime and Northeast Pipeline stated there is plenty of cheap natural gas in Western Canada and the United States, as well as pipelines to get it to the Maritimes. Unfortunately, the cheaper gas will not offset the increased pipeline charges to move it into the region. The question, of course, is can the local market bear the cost increases?

Exon’s backstop agreement – a long-term guarantee to purchase space on the pipeline – expires in 2019.

By Art Irwin

Liquified gas solution The Nova Scotia natural gas utility, Heritage Gas, has secured two longterm transportation contracts to bring cheaper gas into the province and is planning its Alto project, to store natural gas when prices are cheap in summer, near Stewiacke in underground caverns for use in the winter.

There are two liquefied natural gas (LNG) terminals proposed for Nova Scotia. One of these is at Bear Head at the Strait of Canso and another, that is further advanced, is located at Goldboro in Guysborough County. Calgary-based Pieridae Energy is developing the Goldboro project. This group hired banker Morgan Stanley to help

Shearwater Airport, outside of Dartmouth, was one of many commercial facilities that converted to natural gas. raise $10 billion in equity and project financing.

The LNG terminal would bring in large volumes of natural gas, on the scale of Exxon’s Sable project at its peak, stated Whalen. He feels their toll would plummet and the cost of moving gas through Nova Scotia and New Brunswick would decrease dramatically when it is operational.

He stated that Maritimes and Northeast also has the capacity to double the amount that passes through its system to a billion cubic feet per day by adding compression technology on its line, which runs from Guysborough to the U.S. border at St. Stephen, N.B. LNG export facilities would be hugely helpful for natural gas consumers. A U.S. energy company, Anadarko, actually broke ground at Bear Head fourteen years ago before getting out in 2011 as cheap shale gas flooded the market. The pipeline flow is already reversed.

Drastically lower production from Sable and the Deep Panuke Offshore Gas Project, 250 km southeast of Halifax, has already transformed the way gas flows in the region.

Shortages boost price The investment in gas infrastructure has been considerable, including the installation of a 12-inch gas line under Halifax Harbour.

www.plumbingandhvac.ca

When Sable went into production in 1999, 100 percent of the gas on the Maritimes and Northeast Pipeline flowed south towards the United Please see ‘Changing’ on page 39

October 2018 – Plumbing & HVAC

37

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Q Heating

Changing gas flows, changing plans Expansion plans cancelled

These stacks were installed as part of the natural gas conversion at Shearwater Airport.

Enbridge Gas in New Brunswick distributes natural gas to over 12,000 customers in twelve communities. Heritage Gas in Nova Scotia currently has 5,200 customers in Halifax, Dartmouth, Bedford, Amherst, Oxford, Pictou and the Stanfield International Airport. It currently trucks natural gas to two large customers ; Shaw Brick in Lantz and CKF Inc. in Hantsport.

The town of Antigonish made application to have the gas extended to St. Francis Xavier University and St. Martha’s Hospital, but it appears this will not happen. Heritage cancelled their proposal.

New Brunswick has a long history with natural gas. The first oil in Canada was discovered in 1859. Three hundred oil and gas wells were drilled in the province by 2010.

Since 1990, 40 oil and 40 natural gas wells

have been drilled in that province and 49 of them have been hydraulically fractured.

There are currently 32 natural gas and eighteen oil wells producing in New Brunswick by two operators. They are Corridor Resources and Kicking Horse Energy. Natural gas production in New Brunswick in 2014 was just over nine million cubic feet. In Southeastern New Brunswick, Calgary based consultants GLJ & Associates Ltd. have estimated a 67 trillion feet (TCF) gas-in-place resource in the Fredrick Brook formation in the Sussex and Elgin sub basins.

(Source: BP Statistical Review) Arthur A. Irwin operates Irwin Energy Consulting Services in Halifax. He can be reached at irwin.a@ns.sympatico.ca.

Continued from page 37

States. In 2017, gas flowed south for only 30 days. During the rest of the year, it flowed into the region, at a price that was sometimes too expensive for one of the region’s biggest customers, Nova Scotia Power. The utility has moved to heavy fuel oil instead of natural gas to generate electricity. Nova Scotia Power stated that natural gas hit a high of $100 per MMBTU (million British thermal units) on certain given days. As a comparison, heavy fuel oil delivered was $9 per MMBTU. This meant that at times natural gas was ten times the cost of heavy fuel oil.

A small number of owners of larger buildings installed the more expensive dual-fuel burners when they converted to natural gas. Fortunately, these people can simply switch back to light oil if they find natural gas gets too expensive. There are a good number of building owners that converted to natural gas at their own expense and unfortunately may need to convert back to oil. This means they must also change the heating appliance, which will be costly.

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Q Tools & Instruments Compact sectional drain machine

Motor drive analyzers

Ridgid introduces the new K-5208 Sectional Machine, designed to cut through the toughest roots with a 3/4 HP motor and cable that can spin up to 700 RPM. It is designed for drains two to eight inches in diameter and features a tool-less clutch adjustment to quickly switch between 7/8 inch to 1-1/4” cable sizes. It also features the new Trident Sectional Cable Decoupler for disconnecting cables efficiently. The K-5208 includes a fluid management system that incorporates a reservoir to catch fluid for later draining. It is also 30 percent lighter than the Ridgid K-1500 Sectional Machine.

Ridgid www.ridgid.com

The new Fluke MDA-510 and MDA-550 Motor Drive Analyzers simplify troubleshooting on single-phase and three-phase motor-drive systems by providing guided testing. The MDA500 series eliminates having to set up complex measurements every time by delivering repeatable test results. Technicians can select a test and the step-by-step guided instructions will show where to make voltage and current connections. The preset measurement profile ensures that all data is captured for each motor – from input to output, the DC bus, and the motor itself.

Fluke www.fluke.com

One-handed reciprocating saw

Tough gas water jetters

The Milwaukee M18 Fuel Hackzall with brushless motor is a one-handed compact reciprocating saw that is designed to provide superior control and the ability to make cuts in tight spaces. The dual gear counter-balance mechanism ensures minimal vibration. The company’s Redlink Plus Intelligence ensures performance and protects the tool from overload, overheating, and over-discharge. The M18 Redlithium XC5.0 Battery Pack provides more work per charge.

Milwaukee Tools www.milwaukeetool.com

The General Pipe Cleaners Jet-Set gas engine powered machines punch through stoppages in longer drains of four to eight-inches with up to 3,000 psi pressure. Models ranges from the light, economical JM-2900 to the JM-3000 with electric start and a 300 ft. capacity hose reel. The JM-3055 allows for the highest water flow rate of any jet without a holding tank. The JM-3080 tops the line with a 12-gallon buffer tank and eight gallons per minute (gpm) flow rate.

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Q Refrigeration

WALK-IN COOLER EFFICIENCY, PART II

Optimum

design

Many factors affect walk-in cooler/freezer efficiency

By Greg Scrivener

www.plumbingandhvac.ca

This condensing unit is installed in an unused basement, taking advantage of cooler condensing temperatures.

I

n the last issue we discussed some of the end up choosing a 3 HP condensing unit. If you primary factors that affect the efficiency were designing to a 20°F TD, you would likely of a walk-in cooler. In particular, we end up choosing a 3.5 HP condensing unit. discussed how the evaporating and condensing temperature of a system plays a A cooler environment significant roll in the efficiency.

Figure 1 also illustrates the significant For example, let’s consider a -5°F walk-in difference from operating the condensing unit freezer that is 20’ x 10’ x 10’ high. A typical in a cooler environment. A 95°F condensing load for this type of freezer would be in the temperature could be expected in an ambient 13,000 Btu/h range and we will use R448A as of approximately 80°F and decreases the refrigerant in our examples. horsepower requirement by about 20 percent.

First, let’s consider the condensing unit This would be achievable in a location such as selection. The size of an air-conditioned space the compressor depends or a large unconditioned It is imperative crawl space. on both the evaporating temperature and the Digressing slightly, if for efficiency condensing temperature. it is an air-conditioned Fig. 1 illustrates the range purposes to avoid space you should consider we could expect to see for hot locations like that you are likely moving our example freezer. As the heat using the air you can see, for a 110°F unventilated ceiling conditioner, which will condensing temperature spaces, roof enclosures increase its energy use at (approximately 95°F least during the summer. ambient) we would with poor circulation or On the flip side, the heat operate between about unconditioned the condensing unit 2.75 and 3.25 HP in rejects may reduce the kitchens. the “normal” range of heating requirement for evaporator temperature the building in the winter. difference (TD) – 10F to about 20F. In any case, the point is that it is imperative for This is significant because at these sizes, efficiency purposes to avoid hot locations like compressors are often available in increments unventilated ceiling spaces, roof enclosures with of 1/2 horsepower. Selecting a lower TD could poor circulation or unconditioned kitchens. result in a smaller condensing unit and a lower Continuing with our example of the 13,000 cost for that unit. In this case, if you were to design based on a TD of 10°F, you would likely Please see ‘Trend’ on page 45

October 2018 – Plumbing & HVAC

43

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Q Refrigeration

Wall thickness and cooling The first parameter I want to discuss is the selection of insulation thickness for the walk-in panels (or the decision to use field-built walls). Fig. 3 shows what the difference would have been to our example system based on wall thickness; it shows a 20 percent change in the total box load between a selection of three-inch insulation compared to five-inch.

When I started in the industry we used three-inch panels for a lot of systems, including freezers. Over the years the use of four-inch panels has grown and it’s fairly common to see five inches. It is also important to consider that different types of insulation have different insulating values and they degrade differently over time.

While the point here is not to get carried away discussing box insulation, it is worthwhile considering that in addition to increasing efficiency, the increased insulation may also reduce the size of equipment you need.

Please see ‘Don’t scrimp’ on page 47

www.plumbingandhvac.ca

KƉĞƌĂƟŶŐ ,ŽƌƐĞƉŽǁĞƌ

Btu/h unit operating at 110°F condensing, it is obvious that the condensing unit is only part of the picture and that we also must consider the energy use of the evaporator. Fig. 2 shows the added fan horsepower to the total peak power of the equipment.

Some walk-ins are really small Notice that at very low TDs, but have a very high product the fan horsepower increase is load (blast or testing chambers). significantly more that at the The evaporator selection is higher TDs. Since fans typically determined by physical size. run 24 hours/day regardless of the refrigeration load; this has a much more dramatic effect on the energy use of lower TD systems. A proper energy analysis would show that some lower TD systems actually use more energy unless additional evaporator controls, such as fan speed controllers, are employed.

Additionally, the lower TD evaporators require much more surface area and more fans, so are more expensive. The difference in this case would move us from a single fan at a TD of 25°F to 5 fans at 5°F TD! The point of this exercise was to illustrate that there are a many entangled parameters to consider when choosing energy efficient and cost-effective refrigeration systems for walk-in coolers and freezers. There are several other issues to consider regarding the equipment; however, we are going to shift our focus a bit to a few other “secondary” parameters.

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10 15 20 25 ǀĂƉŽƌĂƚŽƌ dĞŵƉĞƌĂƚƵƌĞ ŝīĞƌĞŶĐĞ ΀d ΁

30

35

Figure 1: Approximate operating energy required for the example condensing unit at two different condensing temperatures.

4 3.5 KƉĞƌĂƟŶŐ ,ŽƌƐĞƉŽǁĞƌ

Continued from page 43

3.5

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10 15 20 25 ǀĂƉŽƌĂƚŽƌ dĞŵƉĞƌĂƚƵƌĞ ŝīĞƌĞŶĐĞ ΀d ΁

30

35

Figure 2: Operating horsepower, including the evaporator fan, compared to evaporator TD. Note that this is only peak energy use and does not account for the fact that in almost all cases, the evaporator fans operate for longer periods of time than condensing units.

16000 Total Box Load (Btu/hour)

Trend towards thicker insulation

4

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Figure 3: The load of our example walk-in freezer based on wall, floor, and ceiling insulation thickness.

October 2018 – Plumbing & HVAC

45

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Q Refrigeration

Don’t scrimp on pipe sizing Continued from page 45

Pipe sizing critical

KƉĞƌĂƟŶŐ ,ŽƌƐĞƉŽǁĞƌ

The last parameter I want to discuss is pipe sizing. It is disappointing to walk on to a job where you can tell that care was given to selecting good box panel insulation and refrigeration equipment only to find the pipe sized so small that any efficiency gain is completely lost. We previously covered the effect of evaporating temperature on efficiency and we are going to focus on the suction line sizing to illustrate why proper pipe sizing is so important.

In our example, the required capacity of the system was 13,000 Btu/h. Let’s assume that we used the 3 HP condensing unit at a 110°F condensing temperature and selected an evaporator that resulted in a 10°F TD (-15°F evaporating temperature). At these conditions, the expected power consumption would be approximately 2.74 HP. Fig. 4 illustrates the effect on the horsepower consumption from pipe size selection.

As you can see, for a very short pipe run, there is almost no difference in energy use between 3/4” and 1-1/8” tubing. You can also see that the same results do not hold for a longer pipe run where the difference between 3/4” and 1-1/8” results in 3 an eight percent increase in energy use. This effect 2.95 ϭϬϬ ƋƵŝǀĂůĞŶƚ &ĞĞƚ results in the inefficient 2.9 ϮϬ ƋƵŝǀĂůĞŶƚ &ĞĞƚ operation of a significant 2.85 portion of systems. Notice 2.8 that it is the equivalent 2.75 length that is used to determine the piping 2.7 pressure drop. This 2.65 means that an equivalent 2.6 length should be added Ideal 1-1/8” 7/8” 3/4” for all components and WŝƉĞ ^ŝnjĞ directional changes Figure 4: The operating horsepower (bends, valves, 90s, of our example freezer considering etc.…), which makes it the pressure drop in the suction piping difficult to have a system using two different equivalent line that is only 20 equivalent lengths. feet.

Standardized energy regulations It’s not hard to imagine, with all the parameters that can affect the energy use of a walk-in cooler or freezer, that many operate inefficiently. This has resulted in an effort to standardize energy efficiency regulations in the U.S., which has adopted several energy efficiency measures that require certain minimum product specifications (i.e insulation

www.plumbingandhvac.ca

thicknesses) and minimum refrigeration system efficiency.

This minimum efficiency is being determined by a U.S. Department of Energy (DOE) test method called the Annual Walk-In Efficiency Factor (AWEF).

One of the things we did not discuss in this article that can have a large bearing on the efficiency of a refrigeration system is the refrigerant selection itself. As we move to reduce the environmental impact of refrigerants, there is sometimes a conflict between the desire to reduce energy use directly and reducing the overall environmental impact. CO2 often ends up in this conflict because in high ambient conditions it is not very efficient. However, the direct global warming potential (GWP) of the refrigerant is very small so the overall impact might actually be lower depending on how power is produced in the area the system is installed.

This is perhaps a conversation for another day.

Greg Scrivener is a refrigeration consultant for Cold Dynamics in Edmonton. He is a professional engineer, journeyman refrigeration mechanic and holds RSES CMS designation in commercial refrigeration. He can be reached at greg.scrivener@colddynamics.com

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www.acquaerpumps.com October 2018 – Plumbing & HVAC

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Q Plumbing

PUMP REPLACEMENT AND INSTALLATION Sometimes it’s not as straightforward as one would hope

By Bill Hooper

When servicing a pump in a DHW recirculation system, it is worthwhile to review the system with an eye to better operation.

www.plumbingandhvac.ca

Many of us have been faced with pump replacements over the years and we have strategies to ensure that once we have left the building, there will be adequate flow to all circuits at all demand variances, and there will be no call backs! Well, that is the goal.

The truth is that replacing pumps with something we can be completely confident in can be very difficult in some cases – especially when we run into older installations where identification of the existing pump is sketchy due to the age and/or wear of the unit.

Pumps from different manufacturers with the same flange to flange dimension can have very different performance characteristics that can cause unexpected results when power is engaged.

There is also the ugly truth that most people that replace a pump will leave the new unit operating at maximum speed. Spoiler Alert…

new variable speed/smart pump technology might be the answer!

If we can’t seem to part with the extra dollars it takes to have newer smart/ variable speed pump technology in our service vehicle, there are certainly suitable

Another issue we must consider if we replace like for like pumps is that the original installer/ designer that chose that pump knew what they were doing! alternatives in three-speed wet rotor pumps, but they are not as easily modified to suit the application as we might think. Depending on the system itself, changing the speeds between one, two and three can have Please see ‘Troubleshooting’ on page 51

October 2018 – Plumbing & HVAC

49

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Q Plumbing

Troubleshooting a malfunctioning system Continued from page 49

minimal impact on the flow delivered to the system as the pump has to follow the system curve (more on this another time).

‘Identical’ pump issues When the best case is before us and we can replace a pump with an identical one of newer vintage, that is not always the end of the story.

Another issue we must consider if we replace like for like pumps is that the original installer/ designer that chose that pump knew what they were doing, or that they were able to get the correct pump and didn’t have to make-do with something that wasn’t ideal! We might also take time to think about whether the pump is at the right location in the system

A pump with smart controls can go a long way in solving a difficult installation.

– knowing the best practice is to pump away from an expansion tank, for example.

Following are some GOOD Installation practices: • Generally, the motor should be parallel with the floor (horizontal); • Vertical in-line pumps are specifically designed to have a vertical motor, but for up to five HP it is allowable to have the motor horizontal; • Conduit boxes for electrical connections should be on the side of the motor, occasionally on the top, but never on the bottom; • If you can’t see the flow arrow on a pump, the suction side is always the one attached to the bump on the bottom of the casting; • If you are installing a domestic hot water (DHW) recirculating pump, make sure it has non-ferrous construction, and it is best to have it on a control like an aquastat.

Constant recirculation can cause premature system wear and energy waste; • Do all you can to pump away from an expansion tank (suction side of the pump toward the tank connection). If you are not sure about this, turn the pump off and look at the system pressure gauge.

Turn the pump back on… if the pressure did not change much you have it right. If the pressure goes down significantly, it is recommended that we make changes to the installed location to pump away from the expansion tank; and…

• Actually read the IOM manual (for nuggets of wisdom) and leave it close by the pump for the owner or maintenance person.

Troubleshooting basics Following are some things to keep in mind when troubleshooting pumps: Most hydronic systems for baseboard, coils and radiators operate at higher temperatures Please see ‘Different on page 53

www.plumbingandhvac.ca

October 2018 – Plumbing & HVAC

51

Q Plumbing

Different projects require varied approach Continued from page 51

and are designed to have a 20F temperature drop between the supply and return of the pump. When commissioning or troubleshooting, the technician needs to have a way to measure those temperatures.

Amperage draw on pumps increases with an increase in flow rate. If a pump doesn’t seem to be working well, you can check the amp draw and compare it to the full load amps on the nameplate.

If you find a DHW recirculation pump in any building, there is an opportunity to review the installation to consider pump size and capacity. In copper lines, velocity should be two to three feet per second. PEX lines would be two ft./sec for velocity.

In repl acing or s er vicing const ant speed pumps with a triple-duty valve on t he dis charge, consider the position of the valve during operation. If this valve Manufacturers have gone to is closed significantly, it considerable effort to create pump is because the impeller selection tools that help the contractor trim of the pump is too make the right choice. This is Bell & large. That’s always good Gossett’s ESP-Systemwize tool to know if replacement is needed!

Pumps that have ECM motors may not be compatible with controls for injection or other variable speed controls. Double check the installation manual!

under control, there are relevant ways to find out if the pump is source of the trouble.

When it comes to the point where a pump needs to be replaced, I believe we will find smart pumps to be more economical in the long run.

Variable speed smart pumps with integral control are available from residential to large commercial sizes. The smart pump is more user friendly and will automatically adjust to match flow to the load in the system – taking a measure of uncertainty out of which speed to leave the pump on… oh, wait… scratch that – we just leave them on maximum speed “just in case” – right?

Bill Hooper is a certified engineering technologist with many years experience in hydronic heating. He is a former chairman of the Canadian Hydronics Council, was involved in creating the CSA B214 Hydronic Heating Code and has worked with ASHRAE. Today Bill is Atlantic Region manager for Uponor Ltd. He can be reached at bill.hooper@uponor.com.

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Different projects and practices There are many sizes and varieties of projects we can get involved with from residential to light commercial, to large commercial.

When it comes to those commercial engineered and tendered projects, we can typically find the installation more trustworthy and replacing like for like pumps has a greater tendency to be a best practice. In the commercial mechanical systems world, there are more eyes on the system during the design and installation. In addition, the systems are typically specified to be commissioned with a report on performance.

Things are not always that cut and dried. In cases where we are in charge of finding an appropriate solution to install a new hydronic pump/circulator, we may conclude that we should strongly consider a pump that can adapt to a project – which means variable speed and variable volume with integrated controls.

Being in a service call situation with hydronic systems can be a daunting task when it comes to troubleshooting, but if we have the basics of installation and troubleshooting described in this article

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Q Plumbing Remote bathroom system

Speedy installation

Zoeller introduces its all new Qwik Jon Ultima economical pump and sewage system. It is designed for free standing bathrooms in unplumbed locations.

It is ideal for putting a bathroom in the basement. Powered by a half horsepower motor, it is available in multiple configurations. It is engineered to never need cleaning or maintenance for its lifespan.

Zoeller www.zoellerpumps.com

A study commissioned by Rehau and conducted by Home Innovation Research Labs compared the installation of four systems: copper pipe with press fittings, copper pipe with solder fittings, PEXa pipe with ASTM F1960 cold-expansion fittings, and Rehau PEXa pipe with Everloc+ fittings. The Rehau PEXa pipe with Everloc+ fitting installed 66 per cent faster than copper with solder fittings, 52 per cent faster than copper with press fittings, and 21 per cent faster than PEXa with ASTM F1960 cold-expansion fittings, reports the manufacturer.

Rehau www.rehau.com

HVAC pipe joining system The QuickVic SD Installation-Ready System by Victaulic is a plain end pipe joining technology designed for use on carbon steel HVAC systems sized 2 in./ DN50 and down. The system includes installation-ready couplings, fittings and valves, and the PC3110 cut and mark tool. It is available in sizes of half an inch to two inches/DN15 to DN50. It can be used on schedules 10 through 80 carbon steel pipe and has a maximum working pressure and temperature rating of 300 psi/2068 kPa/21 bar and 250 F/120 C (with the EPDM gasket).

Victaulic www.victaulic.com

Stylish single flush Crosswater London introduces the all new MPRO single-flush toilet. The new toilet is anchored in architectural appeal with iconic definition and versatility. The toilet is crafted of white vitreous china and coated in NanoGlaze anti-bacterial gloss coating for a classic form.

It joins the popular dual-flush version in style.

Crosswater London www.crosswaterlondon.com

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55

Relax. There’s no need to worry about being in hot water.

John Wood offers state-of-the-art, high-efficiency residential water heaters that can help your customers save on utility costs and enjoy a truly relaxing shower.

To find out more visit johnwoodwaterheaters.com

Q People & Places

Wholesaler barbecues raise $28,000 to fight cancer A Southern Ontario plumbing and hydronic heating supplier has raised $28,000 for the Princess Margaret Cancer Foundation at weekly Thursday barbecues for its customers.

NEXT Supply, Vaughan, Ont. held the free barbecues at its 11 locations in the Greater Toronto Area through the summer. The company matched all funds raised during September.

An event at its Vaughan headquarters on Sept. 13 raised $4,000. For a small donation, contractors at the event had an opportunity to test their road hockey skills.

These events helped raise money for the Team NEXT A Squad in their participation in the Road Hockey to Conquer Cancer Event, which took place on Sept. 29, reported NEXT’s Carolina Lorenz, marketing.

NEXT Supply ended up 13th overall for total fundraising, which allowed the team to draft retired NHL player Matthew Barnaby.

For more information, please visit www. nextsupply.ca.

The Princess Margaret Cancer Foundation raises money to support the Princess Margaret Cancer Centre in Toronto, one of the largest

The NEXT A Squad added former NHL player Matthew Barnaby for the tournament on Sept. 29.

cancer treatment and research facilities in the world. Since 1982, the Foundation has raised more than a billion dollars to fight cancer.

The

People Dan Milroy, director of sales and marketing, Bradford-White Canada, Halton Hills, Ont. has been named the 2018 recipient of the Doug Crawford Memorial Award by the Mechanical Contractors Association of Canada. The award recognizes long-standing voluntary contributions to MCAC. Above, Milroy, right, accepts his award from current Associates Council chairman Mike Miller, sales director, commercial building services Canada, for Taco Comfort Solutions, Milton, Ont. Ryan vanDyk, president of True North HVAC and Hydronics Inc., Tavistock, Ont. has b e en name d commercial leader – HVAC, with Haier Ductless/GE Ryan vanDyk Appliances, Louisville, Kentucky. He will work remotely from Southern Ontario.

The Canadian Apprenticeship Forum, Ottawa, has appointed France Daviault to the position of executive director. Born in Montreal and raised in Saskatchewan, she was previously vice president of the Automotive Industries Association of Canada. www.plumbingandhvac.ca

Distributor barbecue draws a crowd

Mits Airconditioning Inc. (Mits Air) held its annual open house and barbecue at its Mississauga, Ont. location Sept. 13. About 700 people typically attend the popular annual event to enjoy a fine meal, visit with vendors and participate in training sessions.

The

Companies ONCAP, Toronto, Ont., has announced it has purchased majority stakes in Walter Surface Technologies, Montreal. The Walter Group has been a leading provider in the metal working industry.

Dwyer Franchising, Waco, Texas, has recently announced that it will be changing its corporate name to Neighbourly. The

Dwyer Group owns Mr. Rooter, Waco, Texas, Drain Doctor, Red Deer, Alta., and Aire Serv, Waco, Texas, all of which operate in Canada.

Triangle Tube, West Deptford, New Jersey, has been acquired by Groupe Atlantic, Paris, France, a manufacturer of HVAC materials. Shaun Edwards, CEO of Groupe Atlantic, UK and ROI Division, will assume the role of CEO, Triangle Tube.

October 2018 – Plumbing & HVAC

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Q Shop Management

New trends in acquiring commercial vehicles

By Ron Coleman

www.plumbingandhvac.ca

B

uy or lease? I wish there was a simple answer but there isn’t. One size does not fill all.

There are several factors to consider. You need to understand these before making the commitment.

The first thing I would like to clarify is that there are two totally separate types of “lease” for vehicles and equipment. There is a “capital” lease and an “operating” lease.

Traditionally, vehicles have been operating leases while machinery or equipment is usually a capital lease. However, even that is changing as leasing is getting more sophisticated. There is a trend towards using capital leases for commercial vehicles.

The criteria for a capital lease can be any one of the following four options: Ownership. The ownership of the asset is shifted from the lessor to the lessee by the end of the lease period; or Bargain purchase option. The lessee can buy the asset from the lessor at the end of the lease term for a below-market price; or Lease term. The period of the lease encompasses at least 75 percent of the useful life of the asset (and the lease is non-cancellable during that time); or Present value. The present value of the minimum lease payments required under the lease is at least 90 percent of the fair value of the asset at the inception of the lease.

If a lease agreement contains any one of the preceding four criteria, the lessee records it as a capital lease.

Otherwise, the lease is recorded as an operating lease.

Your accountant will set this up in your year-end financial statements if you don’t have the in-house expertise.

The original intent behind the capital lease is that you are likely to keep the asset to the end of its useful life; now that commercial vehicles are also being leased as capital leases this is changing. Either way, you are responsible for all the repairs and associated costs. The advantage of the capital lease is that the vehicle will show up on your balance sheet as an asset.

A truck lease that is set up as an operating lease does not have any of the above criteria and therefore there is no balance sheet entry – no asset value.

Don’t get fooled It is generally easier to lease as you often don’t have to put any money down, there may be no deposit and the monthly payments are lower. If that was the end of the story there would be no problem, but there are always two sides to a coin.

Does “no money down” mean no security deposit?

You may have to pay a deposit, plus the first month’s rental plus any related fees. The GST/HST on each payment is fully recoverable as an input tax credit. I often see newspaper ads for leases that look too good to be true and then, literally using a magnifying glass, I see that significant deposits are required, so don’t get fooled.

Even where there is no deposit and lower monthly payments, you should remember that you don’t end up Please see ‘Commercial on page 61

October 2018 – Plumbing & HVAC

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Q Shop Management

Commercial vehicles take a pounding Continued from page 59

owning the vehicle at the end of the lease. If cash flow is a major issue then leasing is an attractive option, provided the deposit, the security deposit and any other fees do not outweigh a purchase. If profit and equity build-up are important then buy the vehicle, using a loan.

No tax benefit

Traditionally, vehicles have been operating leases while machinery or equipment is usually a capital lease.

However, even that is changing…

There is no preferential tax treatment when comparing a lease to a purchase – you get to write off the actual expense. If this is a commercial vehicle used 100 percent for business, then there is no personal tax benefit.

In a lease, you write off the full monthly payment whereas in a purchase you only write off the interest and depreciation. Because you are purchasing the vehicle, the expense portion of your cash flow is lower than in a lease. In a lease 100 percent of the cash flow is an expense and there is no equity; in a purchase your equity portion is a depreciation write-off over the life of the vehicle.

When you sell the vehicle, you may get more than the book value for it and therefore have over-claimed depreciation, so you will have to write back the difference to profit.

Naturally, all your operating expenses., fuel, repairs, insurance etc. are expensed whether it is a purchase or a lease. If you do modifications and repaint the vehicle, you could likely expense those in one year or write them off over several years depending on the amount. Review this with your accountant.

for more than the buy-back allowance and, secondly, by hitting up the lessee with charges for excess damage.

Commercial vehicles do take quite a pounding over the years. You will likely have to return the vehicle to its previous condition, less normal wear and tear. That means you may have to have it repainted to get rid of your branding and you will have to dismantle any racking and shelving. And of course, there is the excess mileage charge which can range from 10 cents to 20 cents per km.

One strategy is to buy out the vehicle at the end of the lease so that you don’t have to comply with any of those conditions and then to use the vehicle for a while longer or resell it. Reselling it with the modifications should make it more valuable to another contractor.

Breaking a lease Getting out of a lease is extremely difficult. Go to the website www.leasebusters.com and see the number of people trying to get out of their leases. Last time I checked there were 140 trucks, excluding mini-vans and SUVs, trying to get out of their leases across Canada. Some have no mileage restrictions others have up to 20 cents per km charge for excess mileage.

Usually businesses are clear on their need for commercial vehicles and less likely to need to get out of a lease. However, you do want to be aware of all the implications of what is required when you return the vehicle or if you need to terminate the lease early.

Developing a relationship with the company you are acquiring the vehicle from will help mitigate any negatives. Also, many construction associations have arrangements with manufacturers, dealers and fleet companies. We will explore this in detail in part two of this article.

Wear and tear Normal wear and tear is expected when you return a vehicle at the end of the lease. You are accountable for any damage beyond normal wear and tear along with excess mileage. There have been recent cases where dealers have been very aggressive in this area because the residual value of the vehicle is lower than anticipated.

When the dealer takes back the vehicle he wants to make a profit on the resale. He can do this in two ways: one, by selling the vehicle

www.plumbingandhvac.ca

Ronald Coleman is a Vancouver-based accountant, management consultant, author and educator specializing in the construction industry.

He can be reached by e-mail at ronald@ronaldcoleman.ca.

October 2018 – Plumbing & HVAC

61

Q Coming Events

Ottawa to host 2019 Canadian Hydronics Conference

T

he 2019 Canadian Hydronics Conference will take place in Ottawa for the first time and will include more training opportunities for contractors.

Organized by the Canadian Hydronics Council (CHC), the event will take place Nov. 4-5, 2019, at the Ottawa Conference and Event Centre. The new location and expanded seminar and trade show format is expected to draw contractors involved in hydronic heating from across the country “A great conference requires a passionate

Events

Calendar NOV. 7-8: CIPHEX West 2018, BMO Centre, Stampede Park, Calgary.

For more information, please visit www.ciphexwest.ca or call Elizabeth McCullough at 1-800-639-2474, or e-mail e.mccullough@ciph.com.

NOV. 7-8: Canadian Hydronics Conference, BMO Centre, Stampede Park, Calgary. For more information, please visit www.ciphexwest.ca/hydronics or call Matt Wiesenfeld at 1-800-639-2474, or e-mail m.wiesenfeld@ciph.com.

NOV. 28-30: The Buildings Show, Metro Toronto Convention Centre, Toronto. For more information, please visit www.thebuildingsshow.com or call 416-512-0203.

JAN. 14-16: AHR Expo, Georgia World Congress Center, Atlanta, Georgia. For more information please visit www.ahrexpo.com or call 1-203-221-9232.

62

Plumbing & HVAC – October 2018

audience and me aningf ul le ar ning opportunities. We will have both, and I am very confident that the hydronics industry will eagerly participate in this national event,” remarked David Hughes (Northern Alberta Institute of Technology) chairman of the Canadian Hydronics Council.

The Canadian Hydronics Conference was launched in 2014 at the CIPHEX West trade show in Calgary. Since then, it was held in conjunction with CIPHEX West in 2016 (Vancouver) and returns to Calgary this fall Nov. 7-8. In 2017 the Conference was hosted in Edmonton, with an international lineup of speakers.

Western Canada has always been an important market for the industry, but 2019 marks a significant milestone with the first Canadian Hydronics Conference in Central Canada. Being in the Capital Region will open up participation from across the country and the expanded format should

INDEX to ADVERTISERS A.O. Smith .................................... 26, 56 AHR Expo ........................................... 60 Airmax ................................................ 18 Baxi Boilers ......................................... 24 Bibby Ste. Croix .................................. 52 Bosch Thermotechnology .................... 35 Bradford-White Canada ...................... 16 Caleffi Hydronic Systems ..................... 41 Cash Acme ......................................... 54 CIPHEX West ...................................... 58 Conbraco............................................ 46 Dahl Bros. ........................................... 13 Delta Faucet........................................ 19 Duravent............................................. 39 Eco-King ............................................. 40 Fieldpiece............................................ 33 Flir Systems ......................................... 28 Flocor ................................................. 50 Fluidmaster ........................................... 6 General Pipe Cleaners ........................... 2 Giant Inc. ............................................ 55 HE Industrial ....................................... 47

draw participants, say organizers.

Past CHC chairman and conference special advisor Barr y Cunningham (Triangle Supply, Red Deer, Alta.) has long advocated holding the Canadian Hydronics Conference in the East. He said he is pleased that Council and CIPH are committed to raising the level of hydronics expertise in the marketplace and sees the Conference as a key learning opportunity to do so.

“This is a passionate industry with great growth prospects. The Conference will provide learning opportunities as well as a sense of community that will help participants ignite their businesses,” he remarked.

More details about the conference, including participating speakers, will be made available in the coming months. Exhibit sales for the hydronics only trade show will be launched this fall.

The Canadian Hydronics Council (CHC), a council within the Canadian Institute of Plumbing & Heating (CIPH), has represented Canada’s hot water heating industry for over 40 years.

For more information, please visit www. ciph.com/hydronics.

Holdrite .............................................. 34 Honeywell Refrigeration ...................... 44 IBC Boilers ........................................... 5 IPEX .................................................... 38 Keeprite .............................................. 32 KW Electronic Service.......................... 63 Liberty Pumps ..................................... 48 Lyncar Products ................................... 42 Master Group ..................................... 63 Bruce Nagy ......................................... 17 Navien ................................................ 11 Noritz ................................................. 29 Ratech Electronics ............................... 53 Ridgid ................................................. 64 Taco .................................................... 36 Triangle Tube ........................................ 9 Victaulic .............................................. 10 Viessmann .......................................... 12 Viega .................................................. 34 Viessmann Mfg. .................................. 18 Wolseley Canada ................................ 22 Zoeller .................................................. 8

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