Roofing BC, Summer 2013 by RCABC

S U M M ER 2013 IN THIS ISSUE: FEATURES: Rooftop wonder: VanDusen Gardens Visitor Centre ...............1 Safety: the drop zone................ 4 Profile: Continental Roofing ...10 Wind, roofs and add-ons.........12

THE VOICE OF PROFESSIONAL ROOFING CONTRACTORS

Vol. 10, No. 2 • SUMMER 2013

ASSOCIATION: President’s message .................. 3 What it takes to become an RCABC member ................... 8 Watson wins CRCA award.......13 INDUSTRY NEWS: Target stores – green roofs?.... 7 BC to cut capital spending ....... 7 LEED a major trend................. 13 Vancouver extends building bylaw.......................... 14 Trump builds in Vancouver.... 14 ERA celebrates a decade ........ 14 ARMA updates modified bitumen guide............................14 Shop space plentiful.................15 Firestone introduces metal roof coating ................................15 BOMA’s award winner............ 16 Asians to build in Kitimat ...... 16 Haida Gwaii hospital starts ...16 Chinese plan Nanaimo hotel. 16 Abbotsford boom wanes..........17 BC housing to rise.....................17 Island construction up..............17 Transit adopts bid system...... 17

Rooftop wonder

COLUMN Legal Affairs: When selling a business.................................. 18

The VanDusen Botanical Garden Visitor Centre

Metro Roofing helped create highest level of green roofing in BC By Dermot Mack

The $17 million visitor centre at VanDusen Botanical Gardens in Vancouver was designed and built to go beyond even LEED platinum – the highest standard in Leadership in Energy and Environmental Design – and it’s the undulating green roof that is its showcase of sustainability. Designed by Perkins+Will Architects, the project follows an innovative building technique that surpassed LEED: the Living Building Challenge 2.0.

This technique is focused on seven elements: site, water, energy, health, materials, equity and beauty. The result is not only arresting architecture but a nearly net-zero energy building that merges into Vancouver’s most famous gardens. Metro Roofing & Sheet Metal Ltd. of Langley, an RCABC member, worked with Houston Landscaping on the “living

RCABC members a cut above Membership is only for the best of the best! See page 8

roof” that was designed by Cornelia Oberlander with Sharp and Diamond Landscape Architects.

PUBLICATIONS MAIL AGREEMENT NO. 40014608 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO:

Roofing Contractors Association of BC 9734 201 Street Langley, BC Canada V1M 3E8

Metro provided the Soprema waterproofing membrane for the VanDusen continued page 6

BC’s greenest roofers Continental leads the way to a greener tomorrow. See page 10

From the President

for that in the BC roofing world is a difficult balancing act. It is important to make sure that summer fun is not pushed to the side. The work will get done as it always does. Options such as It is now July and it looks like taking advantage of those long summer has finally arrived. Based weekends, rotating staffing on on the weather in June I was weekends to ensure that the good beginning to wonder if the rain roofing weather is not missed, would ever stop. But despite the having a staff family barbecue or weather the RCABC Super Summer breaking up staff holidays over a Event was a success. Fun was had few extended weekends are all by all on the Hawaiian themed boat things that can ensure that summer cruise. The rain did little to dampen is enjoyed by all. the spirits and the tropical theme The biggest way to be able to may have helped bring in the balance both the short roofing sunshine. In fact the weather for window and summer quality time is Friday’s golf tournament was proof by being prepared for the summer that Mother Nature can be rush. Get your training done earlier persuaded by a little fun. Hopefully in the year so you have the the first annual Super Summer workforce ready to go. The RCABC Event grows into a long lasting education program can help you tradition at the with that. Be sure to RCABC. take advantage of That quest for fun many of the benefits and sunshine made that the RCABC offers me reflect on summer its members with and how challenging respect to ongoing it can be for all education and training. associated with the Whether it be with roofing industry in apprenticeship or British Columbia. As I safety training the watched the RCABC is there for its anticipation of my members and the Bruce Taylor sons for school to end industry at large. and the freedom of summer to When I was reminded that I arrive, it brought back memories of needed to get this message written those carefree days of summer. I was actually heading out for a few Swimming, backyard barbecues, days of cottage time. As I sit out on and relaxing times spent with the deck typing and watching my friends and family are what sons jumping off the dock into the summer is all about. Making time lake I realize that before we know it

Summer: get it while it’s hot!

ROOFING BC

Roofing BC is published quarterly on behalf of the Roofing Contractors Association of BC and the professional roofing industry by Market Assist Communications Inc.

Roofing BC is online at: www.rcabc.org Managing Editor and Publisher J. Michael Siddall Phone: 604-740-8369 E-mail: Michael@RoofingBC.ca Editor Frank O’Brien E-mail: Frank@RoofingBC.ca Production/Art Director and Advertising Associate Paddy Tennant Phone: 604-507-2162 E-mail: Paddy@RoofingBC.ca Contributing Writers Bruce Taylor Paddy Tennant Circulation Barbara Porth Phone: 604-882-9734 E-mail: bporth@rcabc.org While information contained in this publication has been compiled from sources deemed to be reliable, neither the publisher nor the RCABC will be held liable for errors or omissions. The opinions expressed in the editorial and advertisements are not necessarily those of the publisher or RCABC.

Executive Vice President Ivan van Spronsen, TQ ivan@rcabc.org

summer will be gone and I will be dragging the hockey bags out of the basement. I will wrap up this message as I am being summoned by my sons to judge a cannonball competition. In closing, I hope this summer is

SUMMER 2013

enjoyed by all and that everyone can achieve a happy balance between summer fun and our challenging roofing environment. Bruce Taylor, President, Roofing Contractors Association of British Columbia ■

Administrative Services Manager Barbara Porth, CAE bporth@rcabc.org Technical Manager Rob Harris, RRO rharris@rcabc.org Safety & Risk Management Supervisor Roger Sové, I.P., PID, Ad.Ed. roger@rcabc.org

Drop Zone Careful planning, coordination critical to prevent injury from falling debris By Gord Woodward

Construction sites in BC are proving Sir Isaac Newton right hundreds of times a year. From an injury prevention perspective, that’s not a good thing. Just like Newton’s falling apples, objects such as hand tools and other construction equipment or building materials are all vulnerable to the laws of gravity. And when these items fall from high elevations, they all represent hazards to workers, not to mention others — including members of the public — who happen to be at or near the worksite. The risks go up when these materials land in congested areas. “Objects and materials fall from buildings all the time,” says Ron Morehouse, a WorkSafeBC occupational safety officer who deals full-time with high-rise and other large commercial construction sites in downtown Vancouver. “It’s a major safety issue, and a big concern.” Over the last five years, WorkSafeBC processed nearly 11,000 time-loss claims under the classification ‘struck by falling object’; more than 200 of these incidents were related to items are in use. construction materials or other • And third, pay attention to objects and are likely associated debris. Keep the jobsite clean with falling objects or debris. throughout the workday. The consequences can be tragic, Housekeeping should be well as the close calls so clearly maintained, so nothing can be demonstrate. Last October, several inadvertently kicked off the workers narrowly escaped death building. when a 90-kg pane of glass fell “Always plan for the worst-case from a downtown Vancouver condo scenario,” Schouten says. tower under construction. The window pane landed onto the cab Prevent unwanted surprises of an occupied parked truck, and Jeff Lyth, a safety advisor with bounced onto another vehicle, the BC Construction Safety nearly striking two other workers. Association (BCCSA), encourages Miraculously, no one was hurt. contractors and employees to But the circumstances were far too carefully plan and coordinate the close for comfort. work to prevent objects “How much is it To protect workers, from falling, and to going to cost you issue daily reminders employers should if something practice what about potential goes wrong?” WorkSafeBC hazards. construction industry “The prime manager Don Schouten calls a contractor needs to coordinate work “three-pronged safety approach”: duties, so one contractor’s workers • First and foremost, develop and don’t endanger another contractor’s coordinate work procedures workers.” among all contractors involved On high-rises, for example, iron for securing tools, materials, and workers erecting steel shouldn’t be equipment. The key is to prevent working above a window glazier these items from falling off the working on a swing stage. building when workers are Under Section 20.9 of the working at the perimeter edge. Occupational Health and Safety Plan where materials will be Regulation, warning signs should placed, stacked, and stored on be prominently posted to indicate site, so they are less likely to fall the risk of overhead work. And or get blown over. areas below need to be properly • Second, ensure tools and barricaded or guarded to prevent equipment are secured by using workers from entering the danger tethered lanyards or rope — area. even, if possible, while these In addition, protective canopies 4

WorkSafeBC processed nearly 11,000 timeloss claims under the classification, ‘struck by falling object’; more than 200 of these incidents were related to construction materials or other objects.” Photo: Abseilon

must be installed over that danger area, or adequate catch platforms or nets must be provided to stop materials from falling into areas accessible by workers. And temporary washrooms, offices, and similar structures must be located in areas where no one has the potential for being hit by falling materials. If protective canopies are used, they must be designed to safely support all reasonable loads, in no case less than 2.4 kPa (50 pounds per square foot). Grant McMillan, president of the Council of Construction Associations, says falling debris is a significant concern for his association’s 2,200 members, about 70 percent of whom are trades firms. When incidents happen, they not only have the potential to hurt people, but often draw media coverage, “and that paints all contractors with a pretty negative brush.” BCCSA executive director Mike McKenna cautions employers about the high cost of failing to plan ahead and use all necessary means to protect workers against the dangers of falling debris. They could face lawsuits, repair bills, an increase in WorkSafeBC premiums, and worst of all, a devastating worker injury. “How much is it going to cost you — and ultimately your workers — if something goes wrong?” SUMMER 2013

over onto all of the company’s BC Place roof worksites, he says. Consequently, Safety for its own sake is a “we probably have fewer trips to message echoed by Lou Metcalf, the doctor than anybody in this district health, safety and business.” environment manager for PCL Constructors Westcoast Inc. Safety first The firm was the prime Other employers can follow that contractor for the massive BC Place lead when it comes to dealing with roof replacement between 2010 the problem of falling construction and 2011. Given the challenges of debris. “It’s not a complex fix,” having workers and Schouten says. “But it cranes in close proximity “Always plan for does take the the worst-case employer’s willingness hundreds of metres in scenario” the air, PCL implemented to commit to planning a rigorous safety system even and coordinating the work, and to before the project began. strictly enforcing that plan among The company’s initial assessment all contractors and workers on the identified potential dangers, and worksite.” then mapped out a grid system to Schouten, who formerly worked get a sense of where workers in construction, says it’s important would be during the various stages to also factor in the unexpected, of construction. including keeping an eye on With that accomplished, PCL weather forecasts, since gusts of then launched a system requiring wind can transform many materials workers to get a permit for any site on buildings into deadly kites. access. They met any violations Add to those safety steps a little with immediate disciplinary action. due diligence and preparation, and “We spent an inordinate amount Schouten says employers have little of time policing the procedures,” to fear from Newton’s centuries-old Metcalf says. But it was worth it. discovery. “We still had a few minor near“Like gravity, the rules for misses with falling materials, preventing falling debris are easy to despite our best efforts. However, understand,” he says. “For the most with the measures we had in place, part, it’s about planning ahead and the probability of injury was very applying the rules of good low.” housekeeping and safe storage and Besides, he says, “we just know securing of materials. In other that taking those precautions was words: common sense.” ■ the right thing to do.” – Article courtesy WorkSafeBC and That safety-first approach spills WorkSafe magazine ROOFING BC

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VanDusen cont’d from page 1

VanDusen Botanical Garden Visitor Centre Year complete: 2011 Owner: City of Vancouver Size: 17,222 sq.ft. Designers/Manufacturers Architect: Perkins+Will Landscape Architect: Cornelia Oberlander with Sharp and Diamond Landscape Architects Structural Engineer: Fast + EPP Engineers Green Roof System: ZinCo Canada Inc. Green Roof System Supplier: ZinCo Canada Inc. Consultant: Architek Sustainable Building Products Waterproofing: Soprema Contractors Green Roof Contractor: Houston Landscapes Roof Landscape Contractor: Houston Landscaping Roofing Contractor: Metro Roofing & Sheet Metal Ltd. Construction Management: Ledcor

green roofs, and metal flashings. Keith Panel Systems Co. Ltd. of North Vancouver installed the architectural curved metal panels used on portions of the roof. The roof, covering 17,200 square feet, was a unique project, understates Houston principal Jeremy Miller. “It was a difficult job,” agreed Jim Nicholson, general manager at Metro Roofing, noting that the membrane installation was done during a wet winter. “Most roofs are either sloped or flat, but this roof had a 3D-like surface to it, with dips and bumps,” Miller added, calling it “probably one of the most complex green roofs in North America.” Among the challenges: creating three separate green roof systems that needed to appear as one monolithic green roof, despite slopes that ranged from 2 degrees to 50 degrees.

“Probably one of the most complex green roofs in North America” Three green roofs On the low-sloped roof above the entrance, the ZinCo Perennial Garden was installed with the Floradrain FD40 and 20 cm of growing medium. The sloped petals green roofs were constructed with the ZinCo Sloping Meadow system including the Floraset FS75 and 20 cm of growing medium. And the third green roof, with a slope of more than 45 degrees, was installed with the ZinCo Steep Sloping Meadow system including the Georaster elements and 12 cm of growing medium. The entire green roof was hydroseeded with local grasses and planted with bulbs native to the area. The roof foundation is composed of prefabricated wood panels made with FSC-certified glulam beams, joists, and plywood decking. All services, such as insulation, ceiling materials, electrical fixtures and sprinklers, were built into the components to ease construction of the roof. Perforations through the roof include a solar chimney composed of windows with automatic sensors and a sculptural aluminum heat sink. The sun shines through the atrium, heats the aluminum heat sink, and draws air up, cooling the lower section of the building through convection. Now open for two growing seasons, the tourist centre and the roof that covers it are credited with helping to nearly double attendance at the VanDusen Garden. The project has gone on to win numerous awards, including: Awards for Environmental Excellence, Excellence in Urban Sustainability Finalist, at 2013 GLOBE; Wood Innovation Award, 2013; 2013 Wood WORKS! BC Wood Design Awards; Engineering Award Winner, 2012 World Architecture News; and the Lieutenant-Governor of British Columbia Merit Award, 2012 from the Architectural Institute of British Columbia. ■ 6

Green and curved metal roof at VanDusen Botanical Garden Visitor Centre proved a challenge – and an award-winning success – for Metro Roofing & Sheet Metal, Houston Landscaping and Keith Panel Systems.

A ‘chimney’ jutting through the green roof is composed of windows with automatic sensors that bring light and ventilation into the 17,700 square foot complex on Oak Street in Vancouver. Photos: Perkins+Will Architects SUMMER 2013

ROOFING BC

Target stores may mean green roofs VANCOUVER – Giant U.S. retailer Target is seeking LEED certification for all of the 124 Canadian stores – nine so far in BC – to open this year. And, judging from Target construction in the U.S., many of the stand-alone stores could sport a green roof. Target is obtaining LEED certification through the U.S. Green Building Council’s (USGBC) LEED Volume Program, which streamlines the certification process for multiple buildings of a similar type in both Canada and the U.S. All 24 of the first Target stores that opened in Ontario this year were LEED certified, said Tony Fisher, president, Target Canada. “More than $10 million is being invested into each new location to ensure our stores deliver a commitment to sustainability and design plans that conserve energy, water and waste. Currently the retailer has 48 stores open in British Columbia, Alberta, Manitoba and Ontario. While most stores are in existing malls, former Zellers locations, Target is also building its own stand-alone outlets. Target has extensive green roofs on a number of its American locations, including in Chicago and Minneapolis. ■

Evergreen Line spending in place: other infrastructure spending may be trimmed. Photo: BC Government

BC plans cutbacks on capital spending VICTORIA – While existing infrastructure projects like the $1.3 billion Evergreen Line will whistle ahead, the British Columbia government is signalling a slowdown in other capital spending. The 2013 BC budget update restates Victoria’s plan to eliminate the provincial deficit in the next

year by further reducing capital spending on the construction of infrastructure and additional spending cuts. Finance Minister Mike de Jong presented the budget update in Victoria on June 27. De Jong is calling for $130 million in spending cuts over the next three years.

The 2013 June budget update estimates total capital spending will drop to $6.043 billion in 201213 compared to an updated forecast of $6.767 billion in the February budget. “We view the budget update as part of the consistency we saw with re-election of the Liberal government,” said Manley

McLachlan, president of the BC Construction Association. “The goals of the government are as they were laid out in the spring and there is a continued robust commitment to capital spending.” The budget update represents more than a billion dollars in cuts compared to $7.141 billion in fiscal year 2011-12. ■

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What it takes to become an RCABC member An important milestone reached only after a challenging road Sparkling Hill Resort in Vernon; roofing done by Laing Roofing (Vernon)

By Frank O’Brien

years to make sure their Becoming a member of the Roofing work was to RCABC Contractors Association of BC is a standards, and then mark of arrival, but it is earned only gathered testimonials and after a long and challenging journey. references from clients RCABC membership places a across the Lower contractor among an elite Mainland. network of companies “RCABC Membership dedicated to the highest membership immediately paid standards of roofing means you Gibson said. off, practices in the province. are held to “It is a recognition that a the highest “It has been great. We are working company is among the top standard.” on bigger roofers in BC; perhaps contracts and with anywhere in the world,” consultants and it is a said Bruce Taylor, president of RCABC, and president of Alpha-Duron great feeling to know you are working at the highest Roofing Ltd. of Burnaby. level in the industry.” For Joshua Gibson, a partner in RCABC members use Benchmark Roofing Ltd. of Coquitlam, only the best roofing acquiring RCABC membership met a materials, employ the best trained major goal of the company. workers – many of them trained right Benchmark became a member in at the RCABC Langley campus – and December of last year and “it has are the only roofing contractors who been awesome,” Gibson said. But it can provide the RoofStar guarantee wasn’t easy. Benchmark worked with on labour and materials. consultants over a period of several

UBC Kelowna; roofing done by Laing Roofing, Kelowna

Cloverdale Recreation Centre; roofing done by Raven Roofing

Membership also means access to the best and latest information. Mel Hoffart, owner of Topside Consulting (2004) Ltd. of Dawson Creek, said the RCABC’s Roofing Practices Manual, which is part of the

membership advantages, is itself worth the $10,000 initiation fee for an active membership. “The Roofing Practices Manual has become the guide to architects and engineers,” Hoffart said. “It is

considered the industry standard for good roofing practice.” It takes a very special company, with a solid track record, to meet the criteria needed to wear the RCABC badge as an active member. As an active member, the applicant must: • satisfy the RCABC Board of Directors that the owners and key management are of good repute and possess honesty, integrity and financial responsibility; • have an experienced management team – the owners and/or key management and operational employees must have been actively engaged in roofing contracting in BC for a minimum of five years; • provide proof of liability insurance in the amount of $5,000,000; • be located in a commercially-zoned property or a property that can be lawfully used for commercial purposes;

NE NEVER VER UND UNDERESTIMATE ERESTIMATE THE IMPORTANCE IMPORTANCE OOFF A CCOMPREHENSIVE OMPREHENSIVE RROOF OOF GGUARANTEE UARANTEE

OORR TTHE HE SSTUBBORN TUBBORN DDETERMINATION ETERMINATION OF OF A SINGLE SINGLE

RRAINDROP AINDROP TTOO GGOO W WHERE HERE IITT DOESN’T DOESN’T BBELONG ELONG All roof ing guarantees are not created equal. Case in point: a non-prorated RoofStar Guarantee by RGC is good for f ive- or ten-years and completely covers all labour and materials. RoofStar is also the only one that includes a comprehensive inspec tion schedule overseen by independent, third-par ty inspec tors who monitor the installation process and follow-up inspec tions at pre-determined inter vals. All of which is comfor ting. Because the only thing more determined than a raindrop is our commitment to make sure none of them ever go where they don’t belong. RRoofStar: oofStar: New New name. name. Same Same great great guarantee. guarantee.

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• provide a “Consent of Surety” from a bonding company to issue a $100,000 surety bond in the name of RCABC; • have completed the BCCSA Certificate of Recognition (COR) Program; and • be sponsored by a current RCABC roofing contractor member. For roofing contractors across BC, RCABC membership has important bottom-line benefits since only RCABC members can offer the RoofStar guarantee. RCABC was the first construction association in Canada to offer the RoofStar guarantee. RoofStar covers both workmanship and accepted materials for either five or ten years; a complete guarantee program that is not available from any other source. “You have to have the RCABC guarantee [RoofStar] to be on the bidding block for many large commercial and government contracts,” said Chris Lyons, co-owner of Mainline Roofing Co. Ltd. of Williams Lake, which has held RCABC membership for more than 40 years. “We proudly put the RCABC logo on all our quote sheets.” Robert Greenough, general manager of Tomtar Roofing & Sheet Metal of Kelowna, also a long time RCABC member, notes that membership has responsibility as well as privileges. “RCABC membership means you are held to the highest standard,” said Greenough. He is among the members contacted who praised RCABC’s Roofing Institute, the most advanced “roofing university” in

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Thompson River University, House of Learning – Kamloops; roofing done by Western Roofing

Canada, which trains the roofing contractors, and RCABC members, of tomorrow. Gabriele Fortin, president of Coastal Roofing Ltd. of Langley, is a fairly recent RCABC member. “It is a step up,” said Fortin. “Membership opens a wider spectrum of potential clients.”

Associate members The RCABC also accepts associate members, which are companies that manufacture or supply a product or service to the BC roofing industry. Material manufacturers must have at least one product that can be accepted into the classifications currently listed in the RoofStar

SUMMER 2013

Guarantee program in order to be eligible for membership. All applicants also must: • have an experienced management team and experience in manufacturing or supplying to the roofing industry; • satisfy the RCABC Board of Directors that the principals and

key employees are of good repute and possess honesty, integrity and financial responsibility; and • be able to provide technical support in BC for their materials or services. Like roofing contractors, RCABC associate members also represent the peak of roofing quality in BC. ■

the answer in a simple technology designed to dramatically reduce fuel costs. Working with A&T Systems and Telus, Continental is developing a custom app for their Samsung smart phones. Today, service crews come to the Continental offices each morning to pick up their paperwork and download their previous day’s work. “This phone app will allow the crews to download reports and photos right from the roof and send the information straight to our office,” Eward explained. The technology means that crews will only have to come to the office perhaps twice a week, reducing fuel consumption and shortening travel time to job sites. Technology also allows Continental to prepare from-the-site service reports for clients, showing exactly what type of repairs were done and where, complete with photos. “The property manager can take our information to the building owner or strata corporation and show due diligence,” Foulkes said.

“We don’t look to tomorrow. We look 10 years ahead.”

Profile Continental Roofing is the first RCABC Climate Smart commercial roofing contractor By Frank O’Brien

For Brad Eward of Continental Roofing, the most important persons in business are his nine-year old daughter Haley, toddler Aaron, and his unborn second son. Eward’s kids, and those of his business partner and brother-in-law Will Foulkes – Lauren (8) and Ashleigh (6) – are key

Brad Eward, left, and Will Foulkes, partners in Continental Roofing of Richmond: getting on board with Climate Smart will add to the bottom line. Photo: Richard Lam

reasons why Richmond-based Continental became the first Climate Smart-certified commercial roofing contractor in BC. “We don’t look to tomorrow,” says Eward, Continental’s general manager, “We look 10 years ahead.” Climate Smart is a private-sector initiative that provides training and tools to BC small and mid-size businesses to measure their greenhouse gas (GHG) emissions and streamline their operations. “Continental has already shown

This giant Lowe’s roof in Queensborough was completed by Continental Roofing using white 60 mil Firestone TPO. Photo: Continental Roofing

considerable appetite for sustainable innovation, in an industry that one would not normally identify as particularly sustainable,” said Jens Ourum, part of the business development team at Vancouverbased Climate Smart. “I started to think of our kids, and thinking down the road, that we could be making a difference,” Eward said, “We could do our part to help the environment, save energy costs for our business and look good to our clients.” Eward and Foulkes are pragmatic environmentalists, reflective of a serviceoriented company that has built a successful business and won praise from satisfied clients and the Roofing SUMMER 2013

Contractors Association of BC. The duo first looked to Continental’s fleet of over 30 trucks for ways to reduce GHGs. They found

Zero guarantee claims Continental believes in being accountable for its work, shown in an unprecedented record with RCABC’s guarantee program, now known as RoofStar. Continental has been an RCABC member since 1991 and after hundreds of RCABC jobs and more than $20 million in

Continental Roofing’s Repair and Maintenance Division resolved an issue with a badly leaking planter on a luxury hotel on Robson Street in Vancouver. Continental supplied and installed custom sheet metal caps over the planters, and the tenants placed the plants on top of the caps. Photo: Continental Roofing ROOFING BC

became head of the service department. Foulkes, a business studies graduate from Staffordshire University, England, joined Continental in 2006. Working in both new construction and roof replacements, Continental’s crews install SBS torch-on, EPDM, TPO, Cold Applied Systems and tar & gravel roofs and are certified installers of most major roofing materials. At the request of clients, the company’s crews have even completed roofing projects in Fort McMurray and Edmonton, Alberta.

Continental Roofing’s Sheet Metal Division installs metal cap flashings on new roof and repair projects.. Photo: Continental Roofing

contracts, the company has zero RoofStar Guarantee claims. As RCABC noted in a congratulatory letter, “Continental is the only Lower Mainland RCABC member that has never posted a claim in the [guarantee program].” Eward concedes that Continental roofs have leaked during installation. “We have bought our share of stained T-shirts or store inventory,” he jokes, but the company has also insisted on taking care of the problem –

including paying for client stock that may have been damaged – rather than filing a claim or contesting fault. “At the end the client is happy and that is worth every penny to us,” Eward said. Eward, a graduate from Simon Fraser University, got into the roofing business through his father, Lee Eward, who founded Continental in 1988 with partner and former RCABC president Roger Cumming. Brad started as a safety officer but soon

Proactive service, maintenance Continental focuses on the commercial, industrial and institutional sector, with 30 percent of its work in repair and maintenance. The company provides regular roof maintenance inspections for over 800 properties on the Lower Mainland and Vancouver Island. The program is designed to save clients the cost and inconvenience of emergency roof leaks and to prolong the life of roofs. The maintenance teams are made up of a ticketed journeyman and an apprentice. “Through sponsoring our young employees in the RCABC apprenticeship program and providing in-house training, we endeavor to graduate our apprentice roofers into foremen,” said Eward. While Continental does not install metal roofs, its crack sheet metal

How Continental is Climate Smart • Plastic and wood materials are recycled; • Metal is recycled; • Extra bins are added to sort and dispose of tear-off debris; • Mobile app being developed to file reports and photos from the field; • Moss and other vegetation stripped from roofs is composted and sent to an organic waste company. crew provides metal roof flashings for all the production and service crews year round. They also design and install custom flashings. “All of our employees take pride in their work and in this company, and it shows,” Eward said. An encouraging number of its 80 employees have been with the company for more than 10 years, he notes.

Testimonials The hard work and dedication have paid off long term, as testimonials from some of the biggest property mangers in BC attest. “Continental Roofing has proved to

be a solid, dependable service provider for our portfolio of buildings here in Vancouver and Vancouver Island,” said Wayne Lee, general manager, Metro Vancouver, for Colliers International. “As we get more of our buildings set up under their maintenance program we find we get less and less panic calls from surprise roof leaks. We get a high level of professionalism from dispatch right down to the crews that attend the calls.” Adds Joanne Montgomery of property giant Bentall Kennedy (Canada), for which Continental provides a preventive maintenance roofing program, “Continental is quick and professional. We would recommend Continental Roofing to any of our peers in the industry.” Eward said environmental awareness by such large clients helped push Continental towards Climate Smart registration. “It looks good having the Climate Smart logos on our trucks and signs,” he admits, but he has become a green convert. He is taking Climate Smart training sessions, where he was joined recently by RCABC Executive Vice President Ivan van Spronsen. “Ivan was intrigued, and we even discussed including Climate Smart in RCABC apprenticeship training,” Eward said. It appears that going green may become a growing trend within the RCABC. ■

Continental covered this big warehouse on Braid Avenue, New Westminster, with EPDM membrane. Photo: Continental Roofing

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Wind, roofs and add-ons PV panels, planters and pavers can damage roof membrane if not adhered properly By Dermot Mack

Modern roofs are now being recruited for all types of semipermanent add-ons, from solar PV panels to pavers and planters, but the additions can affect the roof’s performance, according to a senior researcher at the National Research Council. Dr. Bas Baskaran, working with NRC’s Special Interest Group for the Dynamic Evaluation of Roofing Systems, ran a series of wind tests using different add-on scenarios. The results showed that, without proper adhesion, the integrity of a roof could be compromised. One test concerned wind-uplift performance of loose-laid solar PV (photovoltaic) modules over TPO membranes. The roof system tested was steel deck, polyisocyanurate, and 8-foot-wide TPO membrane attached with fasteners at 12-inches on centre.

Solar panels The wind test used 12 PV modules interconnected with clips and loose laid over the membrane. Once the wind test began, the PV system had a longitudinal shift of 11 inches and a lateral movement of 3 inches. A second wind test was then performed, but with the PV system placed at an angle of 11.5 degrees to the membrane seams. In this test, the movement was less pronounced, but remained significant. Such movement could affect the integrity of the roof membrane by causing mechanical damage, leaks and reducing its life expectancy, Baskaran told an RCI meeting in Florida this spring. He added that the wind-induced movement could also damage the PV system’s connections, making it inoperable. Pavers A second study covered the use

Solar PVC panels and planters are among adds-on being installed on commercial roofs; but care must be taken to protect the roofing membrane.

While the pavers were displaced during the testing, the H-clips maintained the interconnectivity and remained intact.

Photos: Wordpress.com

of pavers clipped together and installed over a protected membrane system over two different decks: a composite wood and metal deck with mechanicallyattached gypsum board; and a poured concrete deck that was cured and primed. A two-ply modified bitumen, torch-applied roof system

was installed on each deck, followed by two layers of insulation, a protective mat and 2-foot by 2-foot concrete pavers, clipped together. The assemblies were then wind tested. As could be expected, the concrete deck system passed at 270 psf (pounds per square foot) with no

visible deformation. However, the composite deck system failed the wind test at 125 psf. The failure occurred at the gypsum board connection to the deck. The failure caused the delamination of the membrane from the substrate and resulted in air being allowed into the system.

Planters The final test concerned the installation of vegetated trays over a torch-applied modified bitumen roof membrane. Different types of failures were observed at different wind speeds. These failures varied from lifting and resettling of the trays to complete blow-off of the tray. The membrane lifted in certain conditions, and was no longer adhered. Best advice: make sure any addons to your roof are properly adhered to protect the membrane. ■ Editor’s note: The publication “Wind uplift resistance evaluation of commercial roofs with and without add-ons”, was developed with a number of clients and collaborators. NRC’s Bas Baskaran has promised to release the full report at a later date.

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LEED becoming major trend

Watson takes top CRCA award OTTAWA â&#x20AC;&#x201C; James Watson, RRO, is the 2013 recipient of the Frank Ladner Award as announced by the Canadian Roofing Contractors Association (CRCA) at its 54th Annual Convention held June 1-3 in Saskatoon. The Frank Ladner Award, established in honour of CRCAâ&#x20AC;&#x2122;s first Technical Director, recognizes a person for their technical contribution to the roofing industry. Watson has been an active professional in the commercial roofing industry for over 40 years. He is a trade qualified journeyman who, for 16 years, was president of an RCABC-member roofing contracting firm prior to accepting a position as Technical Manager of the RCABC Guarantee Corp. (RGC) in 1995. Jim retired from his technical position at RCABC in 2011, and now offers consulting services for roofing and waterproofing projects under his incorporated firm, J. Watson Roofing Consulting Inc., in Victoria, BC. The Canadian Roofing Contractors Association (CRCA) is the national voice of the roofing industry in Canada. CRCA consists of companies actively engaged in the roofing and related sheet metal business in Canada including contracting, manufacturing and supplying of materials and services. â&#x2013;

OTTAWA â&#x20AC;&#x201C; BC roofing contractors should get up to speed on environmental techniques and materials because Canada is now ranked second in the world in LEED construction, and BC is a national leader. According to a list obtained from the Canada Green Building Council, BC now has 214 LEED certified projects complete and another 578 registered with LEED, for a total of 792. Across Canada, 1,000 LEED buildings have been built in the past 10 years. â&#x20AC;&#x153;I am very proud of how far weâ&#x20AC;&#x2122;ve come. It is a testament to the growth of the Canadian green building industry which has embraced LEED over the past decade,â&#x20AC;? said Thomas Mueller, Canada Green Building Council (CaGBC) President and Chief Executive Officer. â&#x20AC;&#x153;Canada is now considered one of the global leaders in green building with some of the most innovative and advanced buildings in the world.â&#x20AC;? LEED is a third-party certification program and an internationally accepted benchmark for the design, construction and operation of high performance green buildings. Canadaâ&#x20AC;&#x2122;s certifications include 145 certified, 316 Silver, 447 Gold

The UBC Centre for Interactive Studies is among more than 700 BC projects built or proposed to LEED standards. Photo: Martin Tessler

and 92 Platinum projects in six different rating systems. Canadian cities have been influential in pushing for the adoption of LEED Canada. For

example, Vancouver has LEED Gold targets for their new building stock. In all, there are 29 Canadian cities or municipalities that currently have a LEED certification policy. â&#x2013;

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The Burrard Gateway project is among developments now covered by a Vancouver bylaw change. Photo: Bing Thom Architects

Trump brands second tallest Vancouver tower Vancouver extends “sustainable building” bylaw VANCOUVER – The City of Vancouver has extended its Rezoning Policy for Sustainable Large Developments that will require projects of about 500,000 square feet to be built to the city’s high environmental standards. The policy replaces the city’s Rezoning Policy for Green Large Sites. “The revised policy captures the shift from large site to large development and states that a 45,000 square metre (or 484,375 square feet) or more new development in floor area and/or a site 8,000 square metres (1.98 acres) or more are criteria for a development site to be classified as a large development and trigger the policy,” stated a report to council by the city’s planning department. Vancouver requires that all new buildings on rezoned sites in the city be built to LEED gold standard, a policy that has been in effect since 2011. The change came about because the old policy’s two-acre default didn’t capture large buildings’ mass construction. Burrard Gateway, a Reliance Properties and Jimmy Pattison project in downtown Vancouver was cited as an example. “One such site is the downtown Toyota (1290 Burrard) site: the city is currently reviewing an application for the project that involves a 1.58 acre site, but proposes 800,000 square feet of development over three towers,” planners noted. The new policy also wraps together many of the city’s standards that it needs large developments to meet in order to reach its 2020 green city goals. The list includes: sustainable building design; affordable and mixed housing; district energy systems; zero waste systems and a transportation plan that incorporates green travel; plus a low carbon energy supply feasibility study by a green energy consultant at the discretion of the city. ■

VANCOUVER – New York City-based real estate developer Donald Trump was in Vancouver in June to brand a 63-storey condominium and hotel tower – the second tallest in Vancouver – with the Holburn Group and TA Global Bhd. The $360 million tower will be called the Trump International Hotel & Tower, and is currently under construction in the 1100 block of West Georgia Street in downtown Vancouver. “We are thrilled to be bringing the Trump flag to Vancouver as it has become a world-class city in its own right,” Trump said at a press conference. “When looking at expanding our portfolio, we felt this was a market that held great potential for our brand.” The tower was designed by iconic Canadian architect Arthur Erickson and will “twist” slightly as it rises. It will include 218 residential suites and a147room luxury hotel. The hotel will feature a pool bar, restaurant, champagne lounge, Trump Spa, banquet room and conference centre. How much will suites cost? “It is expensive,” Trump said. The project is expected to complete by the summer of 2016. ■

EPDM group celebrates ARMA 10 years updates modified bitumen guide

value to the roofing industry.” For more information on the ERA, go to www.epdmroofs.org. ■

BETHESDA, MD – The EPDM Roofing Association (ERA) celebrates its 10th anniversary this year, and pledges to “provide advanced science” to the roofing industry. “It is not enough to stay current on issues facing the roofing industry. We have to stay ahead of the curve,” said Robert Reale, Manager of Marketing Communications at Carlisle SynTec and ERA communication chairman. “We have a strong tradition of leadership and are committed to building on that record to deliver

WASHINGTON, DC – The Asphalt Roofing Manufacturers Association (ARMA) has updated the Modified Bitumen Design Guide, a valuable resource for building owners and roofing professionals working with

Donald Trump brands new Vancouver hotel tower that will soar 63 storeys from Georgia Street. Photos: Frank O’Brien / Holburn Group

asphalt roofing systems. The collaborative guide is broken up into sections and addresses relevant aspects, issues and concerns of modified bitumen roofing systems and its associated components, substrates, construction techniques and innovative uses. It includes considerations for latest trends in roofing that call for the roof to provide more than waterproofing, including solar, garden and recreational surfaces. Topics covered in the guide include deck materials and treatment, roof insulation, membrane installation techniques and choosing the appropriate surfacing materials. The guide can be purchased through www.asphaltroofing.org. ■

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Artist rendering from W.T. Leung Architects shows the fifth-floor plaza at Quintet in Richmond. The waterproofed plaza ponds, waterfalls and features plantings on top of a rubberized asphalt waterproofing membrane. Photo: W.T. Leung Architects Inc.

Wet and waterproo Quintet complex in Richmond stretches waterproofing challenge

By Frank O’Brien

The giant $165 million Quintet project in Richmond, by Canada Sunrise Corporation and being built under the direction of Ledcor Construction, has proved a

challenge for roofing contractor Pacific Waterproofing Ltd. of Burnaby. Quintet will be comprised of five towers and townhomes in downtown Richmond on the Skytrain line. It will also future home of Trinity be the Western University (a private university) and a new 30,000 square foot City of

Richmond Community Centre. The primarily residential development has proved a huge hit with buyers. The first phase, with 295 units and to be completed in 2013, sold out in just two weeks. Some people camped out for two days as they waited to purchase what some see as Richmond’s premier residential development.

PUBLICATIONS MAIL AGREEMENT NO. 40014608 RETURN UNDELIVERABL E CANADIAN ADDRESSES

FEATURES: Quintet: wet and waterproof ....1 Profile: Pacific Waterproofing .. 8 Roofing and the new BC Building Code ..................... 11 Architectural metal “bulb seam” roofing .................12 HST switching back to PST .....17 ASSOCIATION: President’s message .................. 3 RCABC AGM report ................... Prompt payment lobby............. 5 7 Training programs require changes............ ............ 10 INDUSTRY NEWS: Safety blitz may repeat............. 5 Waterproofing: more than the membrane ........................... .6 Underlayment UV warranty doubles ....................... Outlook 2013 .......................... 9 14 VRCA Awards of Excellence ....15 Vancouver’s green plan .......... 16 BC’s Energy Efficiency Building Strategy............ ...........16 Green roof demand on rise.....16 Roof moved in one piece ........18 Building permits ramp up.......18 Construction trade shows: Expo, RCI, Buildex ................... 19 Tower design wins award ...... 20 Roofing nailers recalled ......... 20 Copper price rise forecast...... 20 Shop yards worth money........21 NRCA repair manual out ...... 21 CRCA releases spec manual .. 21 COLUMN Legal Affairs: Computers at work – and privacy ................. 22

ASM ‘bulb seam’ roofing

Gaining popularity in Canada See page 12 Construction of the first phase, which represents two of the projected five 14-16 storey towers, began in April 2011. The phase of three additional second is planned for completion buildings The total square footage in 2015. entire complex is 762,000of the square feet. QUINTET continued

page 4

Trade shows on horizon

February and March offer up three events. See page 19

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There is plenty of small industrial space for lease across Metro Vancouver, such as these small bays in Burnaby. Photo: Westrock Commercial.

Need shop space? Plenty of industrial sites available VANCOUVER – Despite reports of an industrial real estate shortage in Metro Vancouver, research shows there are plenty of smaller spaces available at the size most roofing contractors would need. Both Avison Young and DTZ Commercial call the market “tight” in recent reports, with DTZ noting that just 2.3 percent of the 23.8 million square feet of City of Vancouver industrial space is vacant. But digging down into the market stats suggests that industrial demand may be met not from scarce land, but from reconfiguring space that is already here. When the Roofing BC editor posed as a construction contractor seeking small-bay industrial space

of around 5,000 square feet, he was told there is plenty, even in Vancouver. “There is tons of space like that,” one industrial agent said. Research analysts at both Avison Young and DTZ agreed that small bay space – anything under 10,000 square feet – is widely available, each estimating the vacancy rate for small bays is likely twice the level of the overall industrial vacancy rate. In fact, according to research sourced by Martello Property Services Inc., 70 percent of space currently available for lease in Metro Vancouver is in units of less than 10,000 square feet. The City of Vancouver alone has more than half a million square feet of such small bays.

Firestone introduces metal roof coating INDIANAPOLIS – Firestone Building Products has introduced a liquid coating it claims can protect and extend the life of metal roofs. The Fluid Applied Metal Roofing System uses an elastomeric roof coating technology formulated with 100 percent acrylic polymer to offer “superior adhesion, water protection and durability,” Firestone claims. “These systems can help reduce the temperature of a roof’s surface and can minimize the peak cooling demands of a building. The highest level of energy savings is achieved when using lighter colours such as white or tan.” It is now available through Firestone and its building product dealer network in the U.S. Firestone has not yet launched the product in Canada. ■

There is 3.35 million square feet of space in units under 10,000 square feet and another 4 million square feet sized between 10,00030,000 square feet across the region. Some doubt whether the Metro region should fear a looming shortage of industrial space, even for large-format users. Pointing to the raft of largeformat, high-ceiling warehouses under construction around the Lower Mainland, often on older, low-density industrial sites, CBRE Ltd. senior vice-president Gurch Ollek said he believes the market will respond to the demand for new development opportunities. “I’m not a believer in an industrial land3 shortage,” he said. ■

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Haida Gwaii Hospital design unveiled QUEEN CHARLOTTE CITY – Residents of Haida Gwaii got a firsthand look at the new designs for the Queen Charlotte/Haida Gwaii Hospital replacement project this June. The project’s builder, Bouygues Building Canada, was also The $50 million Queen Charlotte/Haida Gwaii Hospital replacement on hand project will start construction this summer under the direction of to answer Bouygues Building Canada. Photo: Perkins+Will questions at the community update meeting. The building, designed by Perkins+Will of Vancouver is aiming for LEED gold certification. “The Queen Charlotte/Haida Gwaii Hospital replacement project is an important investment for British Columbians,” said Minister of Health Terry Lake. “Bouygues Building Canada’s architect partner Perkins+Will has produced a fantastic design that will provide families of Queen Charlotte/Haida Gwaii with a modern facility that will serve their health care needs for years to come.” Bouygues Building Canada was selected as the preferred proponent on June 19, and is currently working with Northern Health to finalize a design-build agreement to deliver the 17-bed hospital. The new hospital will house oncology services, diagnostic imaging, laboratory, provision for public health, mental health and addictions, and home and community care service, as well as local physician and emergency services, pharmacy, administrative offices, food services and logistical services. Construction on the new facility is expected to begin this summer, and be completed in the fall of 2015. The project will cost $50 million. ■

Cadillac Fairview representatives receiving the EARTH Award from BOMA BC President Derek Page at the Awards Gala Photos: BOMA BC

BOMA names Earth Award winner VANCOUVER – Cadillac Fairview Corp. has won the 2013 Earth Award from the Building Owners and Managers Association of BC (BOMA) for its tower at 885 West Georgia Street, Vancouver. The building includes an arresting glass-roofed lobby. This BOMA-BC award recognizes environmentally friendly and efficient buildings. Entries are judged on energy management; indoor air quality; recycling; reduction and re-use; tenant awareness programs; and health and safety. ■

Asian oil giant to build in Kitimat KITIMAT – Malaysian national oil giant Petronas says it expects to spend up to $16 billion to build a liquefied natural gas export facility in Prince Rupert on the northeast BC coast as a prelude to shipments of LNG to Asia. Arif Mahmood, Petronas vice president of corporate planning, said the company will invest between $9 billion and $11 billion to construct two LNG liquefaction plants. Another $5 billion will be invested in a 750 kilometer long pipeline, to be built by TransCanada Corp., to supply gas to the two plants, according to the Associated Press. The Pacific Northwest LNG project, located on Lelu Island in the Port Edward district near Prince Rupert, will liquefy and export natural gas produced by Progress Energy Canada. Both companies are owned by Petronas, which secured its first LNG buyer, Japan Petroleum Exploration Company Limited (JAPEX). ■

China group plans $50M Nanaimo hotel NANAIMO – The City of Nanaimo has been trying to sell a prime hotel site next to its downtown convention centre for years. The convention centre is long since complete, but the original hotel developer walked away and the city was once offering the lot for $1 to any qualified hotel developer who would build. No takers. But in May, representatives from a Chinese group said the investors would build a $50 million, 200-suite hotel with a rooftop restaurant on the city-owned vacant site. The company has also set aside $9 million as a deposit in a show of good faith to ensure the funds are available. This includes purchasing the land at an appraised value of $565,000 and leasing up to 200 parking spaces from the conference centre. The Nanaimo Economic Development Corporation (NEDC) has apparently been working on the plan with the travel company for the past four months. Vancouver-based lawyer Perry Ehrlich presented the bid to council on behalf of SSS International Travel Co. Ltd., a Richmond subsidiary of Suzhou Youth Travel Services Co. Ltd. Suzhou Youth Travel is ranked 13th in the top 100 Chinese travel service companies, and is ranked first in the Jiangsu province, where it is located. According to Ehrlich, the company posted $175 million in gross revenue in 2012 and moves 41,000 tourists from China across the world each day. He said the company wants to add Nanaimo as a destination on its routes. Nanaimo City Council is considering the proposal. ■

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Abbotsford BC housing building starts will boom rise slightly wanes VANCOUVER â&#x20AC;&#x201C; The Abbotsford construction pace continued to sizzle in April of this year but it may be waning, cautions the Vancouver Regional Construction Association (VRCA). Building permit values in Abbotsford shot up 131 percent in April 2013 â&#x20AC;&#x201C; to $24.6 million â&#x20AC;&#x201C; from March 2013, led by a jump of 486 percent in residential permits, according to the Association. But, notes Jan Robinson, VRCA interim president, â&#x20AC;&#x153;no public permits were issued in April, and government permits will likely see a decline for the year since no major project is currently waiting in the wings.â&#x20AC;? One of the larger Abbotsford projects, the 600,000 square Highstreet retail centre, is complete and opens this summer. VRCAâ&#x20AC;&#x2122;s outlook for 2013 for Abbotsford is mixed but slightly positive, with total permits likely to remain below the past ten-year average. Total building permit values in Abbotsford were down 4 percent in the first four months of 2013 to $56.2 million compared to $58.6 million in the same period last year. Meanwhile, total building permit values rose 55 percent in the Lower Mainland-Southwest region to $694.4 million in April 2013 from $447.8 million in March 2013. â&#x2013;

Housing starts in BC are forecast to total 27,100 homes in 2013 and 28,500 homes in 2014, according to Canada Mortgage and Housing Corp. â&#x20AC;&#x153;Single-detached housing starts are forecast to increase this year and next. Multiple-family construction levels are expected to moderate in 2013, reflecting elevated inventories of new units, compared to a year ago,â&#x20AC;? noted Carol Frketich, CMHCâ&#x20AC;&#x2122;s BC Regional Economist. Existing home sales are forecast to reach 69,300 units in 2013, up from 67,637 sales in 2012; and 77,000 units in 2014. â&#x2013;

rose 4.6 percent to $10.3 billion, according to Greg Baynton, CEO of the Vancouver Island Construction Association. Notable highlights during the first quarter of 2013 include the surge in commercial building permits in Victoria which increased 251 percent to $18.8 million over February 2013 and the spike to $14.6 million in industrial permits in Nanaimo. Public sector spending dropped nearly 25 percent in the quarter while the smaller industrial sector fell 36 percent. The overall outlook for building permits in 2013 is for belowaverage performance since the regional economy and population will grow at a modest pace, Baynton forecast. â&#x2013;

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SUMMER 2013

LEGAL AFFAIRS

implied terms onto the employment purchaser) will be liable to satisfy the relationship such as the entitlement to employee’s entitlements and as to the reasonable working notice in not-forextent of those entitlements. cause termination situations. These can be very expensive The common law of employment liabilities and the question of who holds presumes the period of service to be them should be a significant concern to continuous through the sale of a the parties at the time the business is Employee benefits – business so, as in the statutory context, sold – both the vendor and the purchaser surely are seeking certainty in an employee’s period of service can and beefs – become the extend back beyond the the transaction – rather new owners’ responsibility “The employment purchase date. This will than after the fact. by Robert Smithson Employment be a significant factor in impacts of the “continuous” after sale The sale of a business can have a determining entitlements sale of a business In BC, our Employment substantial emotional and practical at the time of are numerous impact upon the employees. The related Standards Act deems termination. and they flow employment to be legal issues for purchaser and vendor, The parties can from both continuous upon the sale and for their lawyers, are no less structure a purchase statutory sources of a business. So, for the significant. agreement to curtail the and the purposes of the Act, Legally, the employment impacts of period of service and to common law.” the sale of a business are numerous and employees who go to address responsibility for work for the purchaser do so with all they flow from both statutory sources common law liabilities (whether they their accumulated entitlements intact. and the common law. They can be are to remain with the vendor or flow to Their employment is deemed to have the purchaser). But, there are problematic, particularly when the begun with their original date of hire, existing employees flow to the uncertainties in all of this. and their tenure remains unbroken for purchaser of the business. The civil courts have held, for Most commonly, these issues seem to the purposes of entitlements such as instance, that in certain circumstances vacation pay and arise within a year or two both the purchaser and the vendor may severance pay. Any other after the purchase of the be liable to the employee. This will claims which the business. Although the occur when the contractual status of the employees had against purchaser often has the employee has not been adequately the former employer (for intention of keeping all the defined at the time of the sale. instance, for unpaid existing employees, things And, it is not uncommon at all for a wages and overtime, and don’t always work out that judge to decide that, notwithstanding statutory holiday pay) can the purchase of a business, an way. also be directed against This is partly because employee’s period of service – for legal the purchaser. very little due diligence is purposes – goes back to his or her The common law of typically done in relation to original date of hire. employment applies individual employees. For the vendor of a business to be consistently throughout When a termination certain that it does not retain liability Robert Smithson Canada (with the inevitably happens soon for common law wrongful dismissal exception of Quebec) and after the business is damages, it must establish a “novation” is enforced by the civil courts. Its effect, purchased, there are questions as to of contract. A novation has been generally, is to impose a number of which party (the vendor or the described as a trilateral agreement by

When selling a business…

which an existing contract is extinguished and a new one with another party is brought into being. The risk that a civil court will not agree that a proper job was done means that there is no guaranteed method of ensuring which of the parties to the transaction will hold liability. To address this uncertainty, the best the parties can do is build acceptable indemnifications and holdbacks into the purchase and sale agreement. All of this suggests to me that parties to a business transaction should involve employment lawyers earlier rather than later. It also suggests to me that everyone involved should recognize the uncertainty of the situation and protect themselves from unwanted liabilities. ■ Robert Smithson is a labour and employment lawyer, and operates Smithson Employment Law in Kelowna. For more information, visit www.smithsonlaw.ca. This subject matter is provided for general informational purposes only and is not intended as legal advice.

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SUMMER 2013

ROOFING BC