Building Strategies - Winter 2007

■ WORKPLACE, HEALTH & SAFETY CORNER ■ LEGAL CORNER ■ PRODUCT SHOWCASE ■

WINTER 2006/2007

Providing Greater Value to Construction Project Design & Delivery

Estimating the cost of a

construction project PROJECT COMMISSIONING REVISITED CHANGES TO TENDERING AND CONTRACTS ON TIME AND ON BUDGET

Supplementary Focus on

Renovations and Retrofit

You can’t go wrong with ® Bayferrox pigments.

Because with Bayferrox you have choices. Standard colors in granular or powder form. Custom colors. Bulk bags, 50 pound bags, custom sized packages, disintegrating bags. Heat stable pigments. Micronized powders for better dispersibility in demanding applications. The choice is yours.

And you get quality. LANXESS has been making Bayferrox pigments for 80 years, and the process at our three manufacturing locations is ISO certified.

Want service? Our technical service is unparalleled, customer service is personalized, or use LANXESSDirect for 24/7 secure on-line ordering and order tracking.

Are you thinking about automating? You choose the type of Bayferrox you want – powder or granules – and if you want to add the pigment to your truck or mixer as a dry product or liquefied by the color metering system.

Then you pick the system that meets your requirements, from three independent companies with a variety of offerings.

For assistance making the right choices with Bayferrox pigments, call LANXESS at 1-888-422-9337 or visit Bayferrox.com.

Bayferrox® is a registered trademark of Bayer AG, Germany.

Power Distribution and Lighting

Solutions NQOD Panelboards Offer reliable performance for 120/208Vac or 240Vac lighting systems and electrical equipment. Supplies up to 600A main circuit breaker and main lugs and accepts bolt-on or plug-on branch circuit breakers.

NF Panelboards Provide a cost effective solution for all your lighting and electrical distribution needs at 600/347Vac. Available in stock with up to 600A main breaker or 800A main lug interiors, and a wide range of accessories.

I-Line Panelboards This sophisticated power-distribution panel with its up to 600Vac/250Vdc and 1200A ratings provides the ultimate solution for all your commercial and industrial electrical distribution needs. A unique plug-in connection style offers the easiest installation for power branch breakers in the industry.

Square D panelboards offer you the best quality, reliability, flexibility and ease of installation.

QMB Panelboards A high-performance 600Vac power distribution panel for motors, transformers and lighting systems. When specifications or electrical codes require a fusible panelboard, the QMB family offers unbeatable performance and time-saving installation features.

www.schneider-electric.ca

º Providing Greater Value to Construction Project Design & Delivery

20

Contents 8 Commentary PROJECT COMMISSIONING REVISITED. In the Fall 2006 issue of Building Strategies we covered “the case for quality assurance.”

Here are more insights on project commissioning, this time from Mike Cavan, Commissioning Manager, Public Works and Government Services Canada (PWGSC) - National Capital.

What are the major factors to consider when estimating the cost of a construction project? A number of elements come into the estimating equation, and this is where the expertise and experience of the quantity surveyor/estimator can play a significant role.

20 Economic Issues ASSESSING PROJECT FEASABILITY. Determining the cost and establishing the economic feasibility of a construction project is a complex process involving several key aspects, ranging from the costs of material and labour to the level of activity in the local construction environment.

22 Profile 22

BEATING THE CLOCK AND STAYING ON BUDGET. Not spending more time or money than necessary is now the likely focus of most shoppers at the RioCan Centre in Kingston, ON, but it was also the goal of the centre’s owner and builders.

24 Project Tendering RECENT CHANGES TO TENDERING AND CONTRACT AWARDING PROCESSES. New contract tendering and award processes are being implemented in both public and private sectors to streamline the sometimes lengthy bidding process and to ensure that a fair bidding and payment system is in place for the trade contractor.

26 Renovation Supplement

26

26 SENECA COLLEGE GIVES RENO OPTION TOP MARKS. Seneca College of Applied Arts and Technology is the largest college in Canada with more than 100,000 full and part-time students on campuses across the Greater Toronto Area. When it needed a campus location in Markham, ON, it had looked at greenfield sites but new construction proved to be very costly.

27 QUIETER HYDRO-DEMOLITION BOOSTS CONCRETE REPAIR. For the rehabilitation of deteriorated or contaminated concrete, hydro-demolition is by far the quietest option – and that’s not an insignificant consideration for property managers of commercial and residential buildings alike, reports Nyla Matuk, communications and marketing manager with engineering firm Read Jones Christoffersen.

28 ENERGY EFFICIENCY ADVOCATE URGES TAKE-UP OF BOMA INCENTIVES. Owners and managers of commercial buildings in Toronto should plan now to retrofit and take advantage of a new program that is offering $60 million in energy-efficiency incentives, says Yves Lemoine, vice-president of Engineering and Business Development at Toronto Hydro Energy Services, which provides energy-efficiency projects to customers throughout Ontario.

29

29 UPDATING SECURITY WITH INTEGRATED SYSTEMS. In renovations and remodels, most commercial organizations also consider updating their security surveillance systems. Here are some items to consider from GE Security.

Editorial 6 Building wisdom that spans the ages

News 10 Tridel invoice system wins suppliers’ support and IT award 10 Energy efficiency watchdog ranks provinces’ track record 11 Greater Golden Horseshoe plan earns US award 11 Building wrap claims to dry, drain and protect 12 “Canstruction” shows charitable ingenuity 12 ASHRAE releases second guide in energy design series 12 Toronto students work on revitalizing Chicago neighborhood 14 LEED CI offers gains over NC rating 16 TEDCO/Canpar redevelopment earns brown and green kudos

Legal Corner (Sponsored by: Glaholt LLP) 17 Duty of Care in Tendering

Workplace Health & Safety Corner (Sponsored by: TRH Group) 18 The Cost of Doing Business

Product Showcase 30 New products of interest

Building Strategies Winter 2006/2007

5

Editorial

Providing Greater Value to Construction Project Design & Delivery

VOLUME 1 NUMBER 4 • WINTER 2006/2007

Building wisdom that spans the ages

PUBLISHER

Chuck Nervick chuckn@mediaedge.ca

W

hile learning about architecture styles and engineering feats in France recently, I came across a construction strategy that rang a familiar bell. It was the notion of employing skilled locals as a means of gaining the advantage of well-developed expertise with the materials at hand.

It is known to have been a strategy deployed by the Romans responsible for building such aqueducts as the nearly 50 kilometre long aqueduct of Nîmes in the Provence region of southern France. The aqueduct includes the Pont du Gard, a three-level bridge over the river Gardon and a technical and artistic masterpiece almost 50 metres high with a stunning series of multiple arches spanning 275 metres. For the sake of efficiency and quality results, the Romans used native masons and builders familiar with working with the local stone.

Fast forward from around 40 A.D. to the present day and we find that strategy to seek out local expertise has survived along with the nearly 2000 year old Roman structures. Obviously we’re not still building mostly with stone – but efficiency still counts.

Our profile this issue features the RioCan Centre in Kingston, ON, to highlight the challenges of constructing retail centres.

Meeting tight timelines to complete such projects is crucial.

Local contractors and suppliers were brought in on the work when available. Architect John DeSimone with R.F. Lintack Architect Incorporated also noted that in the interest of

speed, they find it most effective to give contractors the flexibility to work with products with which they are familiar and comfortable, provided the owner’s criteria is met.

Also in this issue we look at determining a project’s cost and assessing its economic feasibility, unlike the Romans who built, in part at least, to glorify the empire. Could the builders of the impressive arena in Nîmes have guessed that what they originally built for the entertainment of 23,000 Romans would still be in use 20 centuries later? Of course, over time the Nîmes arena has required ongoing restoration work. We take a look at this topic in the renovation supplement as it applies to buildings that need updating due to changed owners and uses or new techniques and materials to boost energy efficiency and comfort, for example.

In our news section, check out the condo builder Tridel Corporation’s award-winning innovative solution for streamlining invoice payments.

Congratulations as well to Minto Urban Communities, Del Property Management, Great West Life and Lonsdale Quay Market Corp. The positive contributions to the industry by each of these property management companies earned them a 2006 Real Estate Management Industry (REMI) Award sponsored by MediaEdge Communications Inc.

ASSOCIATE PUBLISHER

ADVERTISING SALES

Brandon Vigon brandonv@mediaedge.ca (416) 512-8186 ext. 226

Robert McClatchey robertm@mediaedge.ca (416) 512-8186 ext. 240

EDITOR

Susan Maclean susan@buildingstrategies.ca CONTRIBUTING WRITERS

Duncan W. Glaholt, Laurie Higgins, Mark Hughes, Susan Maclean, Sholem Prasow, Robert Seigel, Duane Sharp, Irv Thompson DESIGN / PRODUCTION

Annette Carlucci annettec@mediaedge.ca

Ian Clarke ianc@mediaedge.ca

PRODUCTION MANAGER

Denise Macharacek denisem@mediaedge.ca CIRCULATION MANAGER

Jennifer Hustler jenniferh@mediaedge.ca

(416) 512-8186 ext. 232

Building Strategies is Published by

PRESIDENT

Kevin Brown kevinb@mediaedge.ca CONTROLLER

Dalieva Ayala dalieva@mediaedge.ca Tel: (416) 512-8186 Fax: (416) 512-8344 MEDIAEDGE COMMUNICATIONS INC.

5255 Yonge St., Suite 1000, Toronto, Ontario M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 www.mediaedge.ca SUBSCRIPTION RATES:

Canada: 1 year, $44.94; 2 years, $80.79 SINGLE COPY SALES:

Susan Maclean Editor susan@buildingstrategies.ca

Canada: $8 Elsewhere: $12 REPRINTS:

Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca.

AUTHORS:

Building Strategies Magazine accepts unsolicited query letters and article suggestions.

MANUFACTURERS:

Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. © Copyright 2006

6

Building Strategies Winter 2006/2007

FREE GIFT! Subscribe or RENEW today and get a free gift with your paid subscription

Digital Travel Alarm Clock features time, month, date, day and temperature in Cº or Fº.

Functions include alarm with snooze and count up/down timer.

Battery included.

□ 12 Issues $80.79

□ 6 Issues $44.94

For all subscriptions outside Canada please add: 2 Years, additional $30, 1 Year, additional $15 *Prices include GST Please make cheque payable to MediaEdge Communications Inc.

Name: ___________________________________________________________________________

Title: ______________________________________

Company: ________________________________________________________________________

Type of Business:_____________________________

Address: _________________________________________________________________________

Telephone __________________________________

City: _____________________________________________________

Province: ____________

Fax: ______________________________________

E-mail: ___________________________________________________________________________

Postal Code: _______________________________ GST No. 89465 2940 RT0001

Method of Payment ❏ Bill my VISA

❏ Bill my Mastercard

MasterCard

❏ Bill my AMEX

❏ Cheque Enclosed

Full Name_____________________________________________________ Signature ______________________________________________ (or last 3 digits on the back of your credit card)

❏ Yes!

What’s more, when I order, my subscription will continue to be serviced without interruption for as long as I wish, under your continuing renewal privilege.

✂

_________________________________________________________________ _____________________________ _____________________ Credit Card Number Expiry Date Total Amount (including tax)

5255 Yonge St., Ste. 1000, Toronto, ON, M2N 6P4 Tel: 416-512-8186 x232 Fax: 416-512-8344 circulation@mediaedge.ca www.mediaedge.ca

Commentary

Project Commissioning

REVISITED In the Fall 2006 issue of Building Strategies we covered “the case for quality assurance.”

Here are more insights on project commissioning, this time from Mike Cavan, Commissioning Manager, Public Works and Government Services Canada (PWGSC) National Capital.

By Mike Cavan

T

here are many pitfalls that can impact the success of the Commissioning (Cx) process on a project. I will focus on the following four.

1. Inheriting the design - It is all too easy to fall into the trap of taking on the design responsibilities of the Designer (who is professionally responsible for the design). It has been our practice to comment only on the expected operation and maintainability of the proposed design solution. That being said, open discussions with the designer to achieve the desired O&M outcome of the design always increase the success of the project and life cycle of the facility.

2. Ensure that there is open dialogue and a unified understanding of the requirements of the Cx process during the conception stage as well as throughout the design and implementation phases. Without this open and frank discussion, the Cx expectations will either be seen as an encumbrance or even as a means to ‘police’ the project and its processes. This can lead to a "them" and "us" scenario, which places the delivery of the "built works" in potential jeopardy.

Experienced contractors and designers have embraced the process, understanding that the protocols and "checks and balances" reduce call-backs (which are detrimental to the successful completion of the project)), allowing them to move on to their next job.

3. A strong Cx implementation plan is key to avoiding misunderstandings during the construction phase of the project. It is

8

important to outline expectations and deliverables - both from the perspective of hard deliverables as well as soft timetable deliverables. With this type of planning, the process can be built into the delivery schedule (that is available to all parties).

Without this type of planning, the old analogy becomes true. "Failure to plan is planning to fail."

4. Ensure that the property management staff have a full understanding and appreciation of the Cx process to assure the successful transition from design to the built works. Operations staff is under the gun to repair failed equipment and do not always respect the "ownership of warranty" by bringing in another contractor to perform minor repairs. This jeopardizes the warranty in some cases.

Commissioning process roles for PWGSC projects Project Manager: reporting to the project leader, the PM is responsible for overall management of the project, including the Cx process. On our projects, typically the PM delegates the Cx responsibilities down to the Cx manager, who ensures that the PM is apprised of all Cx activities on a regular basis.

Designer: responsible for the overall design of the project and assists the Cx provider in all aspects relating to the Cx process.

Commissioning authority/provider: this individual can be an expert within the design team or a third party Cx service

Building Strategies Winter 2006/2007

provider. He/she is responsible for the Cx Plan, Cx specifications, Building Management Manual (a volume of information particular to the project which includes the design intent, standard operating procedures, life safety compliance among other supporting appendices for the facility), and for the development of the training plan and certification of the performance of the systems.

Commissioning manager: representing the interests of the project leader, project manager and property manager, the Cx manager is responsible for providing technical advice (from an O&M perspective) to the PM relating to Cx issues and concerns.

As delegated by the PM, the Cx manager ensures that all Cx requirements are understood and met by both the project design (Cx Authority) and construction (Cx agent) team. The Cx manager is also responsible to ensure that the facilities team has a full understanding of the functions and capabilities of the new facility, and that they have received proper training and other information required to successfully takeover the operation and maintenance of the facility once construction is completed.

Contractor/Cx agent: responsible for carrying out the start-up and performance verification activities as well as demonstrating that the systems perform as prescribed in the contract documents in the presence of and to the satisfaction of the Cx manager and Cx authority. On large projects,

The school of hard knocks

a Cx Agent (normally third party to the general contractor) is required to coordinate the Cx activities on behalf of the general contractor.

Property Manager: in consultation with the project manager and Cx manager, ensures that the facility is ready for takeover, that all service contracts are in place to respect warranties on new equipment, that staff are coordinated to attend all training sessions and that they have all documentation in place to successfully manage and maintain the facility.

To ensure that there isn’t a conflict of interest , as well as to ensure the integrity of the Cx reports and testing procedures, we within PWGSC do on-site witnessing of dynamic tests (random on mechanical/electrical components, full testing relating to building automation systems, fire alarm and other life safety systems). This ensures that the reported results are accurate (both Cx authority and contractor) and reflect actual design performance. This has proven to work well on our projects.

Addressing potential conflict of interest

Public sector's standard policy

Given the size of PWGSC as a government department, we have design managers, property managers and Cx managers. Within PWGSC managed facilities, PWGSC is the Cx manager who represents the owner/investor. It is my opinion that the "owner" of the facility must assume the Cx manager role.

On PWGSC projects where the Cx authority/provider is reporting to the design team, this Cx expert may be an employee of the design firm having Cx expertise, or an independent Cx firm. In either case, we must ensure that the Cx provider is not taking on design issues (which are the responsibility of the designer) but rather is focusing on Cx deliverables and evaluating design performance testing.

We learn something new from each project.

I have identified four of our ‘lessons learned.’

1. Test all levels of a system.

2. Maintain a team approach.

3. Build commissioning into the project design 4. Insist on a proper sequence of operations for all systems and integrated systems.

As standard practice on major projects within PWGSC, we have implemented a Cx process. In this regard, PWGSC has developed a Cx manual complete with guidelines and other related documents that support the Cx process.

In the mid 70's, projects were being designed (either in-house or using consultants) and the built works were being turned over to the property management team. All too often, facilities were being turned over to the facilities staff who were for the most part not directly involved in or directly represented within the project team.

This resulted in a lack of knowledge transfer (training), lack of maintainability (ease of maintenance) of the built works, lack of maintenance information (O&M manuals/as-builts) and the failure of the

installed systems in meeting their functional requirements.

At that time, and as a result of the repeated patterns being observed, PWGSC effectively pioneered the Cx process. We recognized that there was a need for early involvement in the project delivery process to ensure that issues relating to O&M were effectively captured within the design stages and not as a post construction activity.

Indeed, the Cx process has been around for years but it is only recently that the international community is beginning to adopt the process as a means to realize energy efficiency results, assist in defining sustainable development goals, as well as properly define how the building is intended to perform. B

We Specialize in ALL ASPECTS of CONCRETE WORK • ICI Forming • Condo Forming • Building Repairs • Traffic Topping Waterproofing Systems • Mechanical Expansion Joints

BUILDING FOR THE FUTURE

• Caulking • Sealer Application • Window Replacement

www.verdialliance.com

VERDI INC. ALLIANCE FORMING LTD. ALLIANCE RESTORATION LTD.

• Metal & E.I.F.S. Cladding Systems • Wall Coatings • Hydrodemolition • Underground Garage Repair • Balcony Repairs • Floor Finishing • Masonry Repairs

tel: 416-747-5030 • fax: 416-744-5030 • 4001 Weston Rd., Toronto, ON, M9L 2S8

Building Strategies Winter 2006/2007

9

News Tridel invoice system wins suppliers’ support and IT award At the Toronto-based condo builder Tridel Corporation, close to 70 per cent of invoices from suppliers used to be disputed. It was not unheard of for a supplier to wait six months for $160,000 because the invoices could not be reconciled with the purchase orders or a site supervisor said the job was not completed properly.

The situation prompted Ted Maulucci, Tridel’s chief information officer, to ask: is an invoice even necessary? The P. Eng. with a Ba.Sc. degree and an MBA looked at the different ways the condo contractor purchased materials and with his information technology (IT) team, came up with a much better idea: the Zero Invoice System that eliminates most invoices! It also earned Tridel a prestigious Gold Award of Excellence in the Organizational Transformation category at the Canadian Information Productivity Award (CIPA) gala in November.

It sounds like a crazy idea – invoice payment reversal – but it has proven to be a breakthrough in efficiency for both Tridel and its suppliers. The number of invoices processed by Tridel has dropped by 93 per cent.

One of the problem areas Tridel faced relates to purchase orders for buying loose materials when building condos. For example, the company ordered concrete onsite and the supplier sent the invoice out the next day on a daily schedule even though Tridel paid only once a month.

Tridel and the supplier even often had different ways of referring to the same product. With quantities and sometimes product names not matching, invoices would typically be disputed. Tridel worked with its suppliers to create a catalogue and process flow so ordered parts would match supplied parts. Tridel imported a feature in its IT system so that instead of receiving 25 invoices from a supplier, they would get one and it would have an electronic match with a pre-

negotiated price. “It became enticing to the suppliers to co-operate,” Maulucci recalls.

Another purchase problem area related to options and extras – for example, upgrading flooring to carpet, providing different lighting, moving an outlet or even a wall. “We go to the suppler and get pricing which will appear to a purchaser,” he explains. “The supplier would send us an invoice for the extra work to be done but it would be in constant dispute (by the purchaser), consuming time and resources.

So, we invoice for the supplier. They love it!

They’re not automated. We are, so we can do it in seconds.”

Suppliers and construction sites are connected to Tridel’s offices by a virtual private network. The contractors send invoices to Tridel’s bookkeeping department before the work is done, not after. The invoices specify that a certain amount will be paid for the delivery of a product or service when completion is confirmed.

At the construction site, supervisors mark off completed work on a custom-designed electronic schedule. The system automatically reconciles the schedule with invoice payments. Suppliers don’t have to deliver paper invoices and wait to be paid or to find there is a dispute. Tridel sends them a notice that a product or service has been delivered satisfactorily according to mutual agreement, then pays promptly.

Tridel receives more than 65,000 invoices annually, generated from purchase orders.

With the new system, one invoice can correspond to many purchase orders, resulting in a dramatic drop in the number of invoices and disputes over inaccuracy.

The value of the savings is massive. The number of invoice discrepancies is down to 10 per cent of the total. Tridel estimates it is saving almost half a million dollars annually in dispute-resolution costs, not counting legal fees. Key supplier relationships have improved.

Maulucci had the full support for the zero invoice system from Tridel’s quantity surveyors who pitched the company’s management to get executive buy-in. Tridel has 23 people in its IT group. “Our principals invest in us,” Maulucci says appreciatively. His team created the model, applying Microsoft SQL server and .Net. The CIO sees it as “inevitable” that the concept of invoice payment reversal will be applied to magnify savings and productivity in other industries that involve highly interrelated firms.

Microsoft Canada Co., Bell Canada and Cisco Systems were cited by CIPA as technology/expertise contributors to this project.

LEFT: Tridel Corporation’s chief information office Ted Maulucci (right) gets CIPA award from Hewlett-Packard (Canada) president and CEO Paul Tsaparis.

10

Building Strategies Winter 2006/2007

Energy efficiency watchdog ranks provinces’ track record Ontario has the highest positive performance jump but Manitoba remains the shining star of the sixth annual report card released in November by Canada's leading non-governmental, energy efficiency advocacy organization. The Canadian Energy Efficiency Alliance (CEEA) highlights in its latest report the progress during 2005 of the federal government and the provinces to reduce energy demand and consumption. The report also recognizes the role that efficiency and conservation have in improving Canada's competitiveness and reducing air pollution and greenhouse gas emissions.

“

Ontario was cited as noteworthy for a turnaround in its approach and support for energy efficiency. The rating increase is tied to the appointment of a Chief Energy Conservation Officer and an engaged Premier and Minister.

Ken Elsey, President & CEO of CEEA, stated that, "No jurisdiction received a failing grade. The federal government and Manitoba were both awarded A's, New Brunswick dropped from a B+ to a C+, Ontario leaped up from a C- to a B+, and Alberta failed to live up to its potential, receiving a D+."

Ontario was cited as noteworthy for a turnaround in its approach and support for energy efficiency. The rating increase is tied to the appointment of a Chief Energy Conservation Officer and an engaged Premier and Minister. With major new

funding available for conservation and demand management (CDM) programs in the electricity sector, matching those already delivered by the natural gas utilities, Ontario is poised to moved to the top of the class next year.

The Ontario government scores highly with respect to a more progressive approach to energy efficiency, including new program offerings focused on electricity which are delivered through the Ontario Power Authority's Conservation Bureau. New legislation introduced in 2005 intended to strengthen the Energy Efficiency Act and the energy provisions in the building codes bode well for the future. 2005 witnessed the early results of a suite of new programs delivered in partnership with Ontario's electricity distributors that, when combined with the well-established activities of the natural gas utilities, gave Ontario its highest score yet.

The scoring for each of the 14 Canadian jurisdictions is a product of 12 parameters, including how the jurisdiction supported activities such as energy efficiency and public outreach, the existence of public/private partnerships to support energy efficiency, and the existence and responsiveness to energy efficiency issues in key legislation, such as building codes and energy efficiency acts. The report also examined whether the government led by example and how it regulated the energy market. Criteria detail can be found at www.energyefficiency.org.

Elsey noted that in preparing the report card, several issues were identified as significant influences: Canada's falling short of Kyoto targets, energy grid capacity issues and aging infrastructure (particularly in Ontario and eastern Canada), and energy price fluctuations which drive the need for greater understanding of energy consumption patterns and habits.

Greater Golden Horseshoe plan earns US award

The award is given to the plan that best illustrates progress, community benefit and contribution to the advancement of the planning profession.

“This plan is a landmark comprehensive plan that is both visionary and pragmatic,” said Carol Rhea, chair of the 2007 APA Awards Committee. “It provides a strategic, innovative and coordinated approach to sustainable growth and development for 110 different municipalities.”

The province sees its Growth Plan for the Greater Golden Horseshoe as being focused on long-term prosperity and quality of life in the Greater Toronto Area. It is the first growth plan to be released under the Places to Grow Act, 2005, outlining the current government’s vision for Ontario’s most populous region. The intent is to create complete communities, with a greater mix of housing, parks, businesses and services that will make them more livable. It is described as setting clear standards for growth and development, while giving local governments the flexibility they need to maintain their unique identities.

Building wrap claims to dry, drain and protect An exterior wall wrap developed by a research team in Beamsville, ON, and said to be the first product to deal with moisture that comes from the inside as well as the outside has been chosen by Popular Science magazine as one of the best new products of 2006.

Called DELTA-DRY, it is manufactured

by Cosella-Dörken Products Inc., the North American division of Ewald Dörken AG, a European developer and manufacturer of waterproofing and drainage products. It is a building wrap that protects, dries and drains exterior walls – actually drying damp or wet materials after they are incorporated into the building envelope, greatly reducing the chance of mould or rot.

While a high-rise commercial grade version of the product is in the works, the channelled polyethylene sheeting launched last June is currently being used on both residential and low-rise commercial buildings as barrier wrap that cannot be penetrated by air or moisture. Air gaps on both sides of the sheeting deal with moisture, thus targeting the chronic problem faced by builders – framing and sheathing that become wet during construction.

The product is also touted as “green” because the metallic silver membrane reflects radiant heat and is impervious to wind and weather, so helps maintain indoor climates and boost energy efficiency.

DELTA-DRY’s success in preventing the moisture buildup that leads to building failure and mold problems is due to its dimensional, stud-and-channel structure.

During installation, it is interlocked to create a strong barrier against wind- or solar-driven moisture. Openings are left at the top and bottom of the DELTA-DRY wall system for ventilation. The protruding studs create a small, continuous airspace on both sides of the barrier wrap, where drying and drainage can take place. Water vapor diffuses out of building materials into this space, and either dissipates or condenses out on the surface provided by DELTA-DRY. Any water that gets into the air gap flows harmlessly down the pathway provided by the channels to a drainage track installed at the base of exterior walls as part of the DELTA-DRY system.

Tested to meet and exceed the performance of regular sheathing membrane

by Oak Ridge National Laboratory and the University of Waterloo, DELTA-DRY is suited for use under brick, stone, wood, fiber-cement or vinyl siding and stucco exterior finishes. It meets code in Ontario as a substitute for house wrap. www.deltadry.com.

The Ontario government has won a prominent American Planning Association award for Ontario’s Growth Plan for the Greater Golden Horseshoe, Public Infrastructure Renewal Minister David Caplan announced Dec. 19, 2006.

The Growth Plan for the Greater Golden Horseshoe is the first plan from outside the United States to win the American Planning Association’s (APA’s) Daniel Burnham Award.

The new DELTA-DRY wall wrap manufactured by CosellaDörken Products Inc. is gaining converts in commercial applications as well as multi-residential.

Building Strategies Winter 2006/2007

11

News “Canstruction” shows charitable ingenuity

ASHRAE releases second guide in energy design series

The eighth annual design/build competition “canstruction” benefiting the local food bank got underway on Nov. 15 when 20 teams of engineers and architects brought their building materials to various office buildings in downtown Toronto. The annual challenge to design and build structures made from canned food within a 10'w x 10'd x 8'h space is sponsored by the Society of Design Administration Canada, Association of Registered Interior Designers of Ontario, Consulting Engineers of Ontario, Design Exchange, Ontario Association of Architects and the Toronto Society of Architects. Over the past eight years, nearly 300,000 pounds of food have been donated to The Daily Bread Food Bank to help people struggling with hunger. An exhibition preview and awards ceremony held Nov. 16 was hosted by Cadillac Fairview Corp. Joining the sponsors of canstruction for this event were AstleyGilbert Reproductions, XL Design Professionals and Encon Group.

The canstruction structures were on display from Nov. 16 to Dec. 2, 2006. The winning structures were” • Jurors’ Favourite: No More Rumbly in the Tumbly by Cassidy & Company Architectural Technologists and AATO East Chapter • Structural Ingenuity: CANthedral by BA Consulting Group Ltd. • Best Use of Labels: We CanCan Hunger

by The Ventin Group and Carruthers + Wallace Ltd. • Best Meal: Monster House by Quadrangle Architects Limited • Honourable Mention: Hunger is huge.

Hunger is invisible. by ARK Inc. • Honourable Mention: c-A-n-QUARIUM

by Halsall Associates Ltd. and Kuwabara Payne McKeena Blumberg Architects.

Buildings designers are one step closer to a net-zero energy building with the Advanced Energy Design Guide for Small Retail Buildings published by American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). Intended for use by

“

Argo-ICC Reprographics’ Jim Disher took this photo of “CAN-reaction” created by Montgomery Sisam Architects Inc. and Kearns Mancini Architects Inc.

12

The design guide aims to provide “a simple, prescriptive menu of options that will result in a building using 30 per cent less energy than those constructed in accordance with the 1999 version of ASHRAE Standard 90.1,” ASHRAE notes.

builders, contractors and architects, the guide covers energy-efficient design for retail buildings up to 20,000 sq.ft.

The design guide aims to provide “a simple, prescriptive menu of options that will result in a building using 30 per cent less energy than those constructed in accordance with the 1999 version of ASHRAE Standard 90.1,” ASHRAE notes. “Those looking to achieve a LEED certification from the U.S. Green Building Council (USGBC) will find this guide particularly useful.”

The guide offers energy efficiency guidance in many areas, including lighting, HVAC efficiencies, windows, skylights and envelope measures. The guide provides equipment efficiencies by climate zone to take into account varying environmental factors, instead of having one number for the entire United States.

Bravo to all the organizers and participants!

Building Strategies Winter 2006/2007

The guide resulted from collaboration among ASHRAE, the Department of Energy, USGBC, Illuminating Engineering Society of North America (IESNA) and the American Institute of Architects (AIA). The retail industry provided guidance to the guide’s development team to ensure building owner perspectives were considered when forming design recommendations. To help in future

editions, users of the guide will be able to provide feedback via an Internet link.

The guide is part of a series of ASHRAE publications that will progress toward providing net-zero energy designs for buildings of various types. The first publication in the series focused on small office buildings. The next energy design guide will address K-12 schools. www.ashrae.org or 1-800-527-4723.

Toronto students work on revitalizing Chicago neighbourhood A group of Toronto design students went to Chicago, IL, November 17 to collaborate on a multi-disciplinary design project to transform transitional urban communities.

Participating students hail from George Brown College’s Institute Without Boundaries and the City Design Centre of the University of Illinois. By incorporating principals from Massive Change – the Future of Global design exhibition developed by Toronto’s Bruce Mau, of Bruce Mau Design, and the College’s Institute, the students proposed revitalization concepts for a youthoriented park in a west-side Chicago community. An international jury will judge the final designs on creativity and integrative thinking in addressing social and sustainability issues. B

GL AHOLT LLP

CONSTRUCTION LAWYERS www.glaholt.com

News

LEED CI offers gains over NC rating

By Sholem Prasow

EED for Commercial Interiors (LEED CI) was launched by the Canada Green Building Council (CaGBC) in September 2006. While it is targeted at tenant renovations in buildings owned by third parties, LEED CI has an important role to play in new construction – a role that has not yet been realized by the construction industry.

The LEED Canada – CI rating system provides the roadmap for an integrated design process for the entire project – from site selection through fit-out. All of the following aspects of the workspace need to be designed in an integrated manner in order to achieve the desired results: • Sustainable sites • Materials & resources • Water efficiency • Indoor environmental quality • Energy & atmosphere • Innovation in design

L

LEED CI is more than just a rating system. It is an integrated design tool used to minimize the environmental impact of tenant spaces, while at the same time maximizing occupant health, comfort and productivity.

Integrated design process The greatest impact on project design and delivery of LEED projects is that many, if not most, of the credits and points require the majority of people who make decisions about the project to consult with each other early in the game.

That often means that suppliers typically chosen late in the design cycle need to be chosen much earlier. For example, interior architecture and furniture layouts need to be

14

determined at the same time as window sizes and locations are designed, in order to achieve the desired LEED credits for daylight and views. Both the interior designer and the manufacturer of furniture and demountable glazed walls need to be selected and on board, ideally, in order to help optimize that decision. Many sustainable design strategies can add to first costs, and therefore all of the people who can contribute to defining the resultant savings need to be part of the process early in the game.

It is very important that the contractor be chosen early in the game as well. The contractor needs to be familiar with the data collection requirements of LEED. Of more importance, the contractor needs to be in the room to contribute to the process. Decisions such as the use of fly ash to improve recycled content may significantly impact contractor schedules and need to be discussed with all.

If the tenant plans on renovating an existing space, it is important that the building’s mechanical engineer be asked to review the major building systems with respect to LEED compliance. Applicable ASHRAE standards must be met for both energy efficiency and indoor air quality within the tenant’s scope of work, among other items.

Just as important is obtaining the cooperation of the landlord. Education of all involved, including the landlord, the design team, and the construction personnel is key as well.

If the tenant has the option to choose a new location, it is very important that the real estate professional be educated in what kind of building is best for a LEED CI project. Small

Building Strategies Winter 2006/2007

differences do matter. Finding a cooperative landlord is also important as well. As an example, site selection was one of the critical success factors in achieving LEED Gold for the 25,000 sq. ft. HOK Toronto office.

A better choice?

While LEED for New Construction (LEED NC) predates LEED CI and was explicitly designed for new construction projects, project teams should also evaluate LEED CI as an alternative to LEED NC, for the following reasons: • In cases where the LEED decision is made late in the design process LEED CI is easier to implement, since it is impacted less by early building envelope decisions that are hard to change.

• It is less costly. Fewer credits and points to achieve mean lower soft costs. Energy modeling and commissioning costs should be lower as well.

• It is easier to implement than LEED NC – in a new construction situation!

It is important that design teams consider both the LEED CI option for new construction, and not automatically assume LEED NC is the only option. B Sholem Prasow, LEED AP, is VP, Business Development, Teknion Furniture Systems, Toronto. www.teknion.com He is a member of the CaGBC LEED Technical Advisory Group and the USGBC LEED for Healthcare Core Committee. His LEED Accreditation coaching courses have been delivered to over 800 members of the architecture and design community across Canada.

The LEED-Gold Certified HOK office in Toronto used Altos glazed demountable walls from Teknion so interior occupants could view the outside.

Experienced ...

Professional ...

Dynamic Leaders

Health Safety Environmental Training & Education Management Services Workers’ Compensation

261 Millway Avenue, Unit 1 Concord, Ontario L4K 4K9

Toll Free: 1-800-806-8444

www.trh-group.com

News

TEDCO/Canpar

redevelopment earns brown and green kudos

rom a contaminated metal manufacturing site to a 170,000 sq.ft. parcel sorting and distribution facility isn’t exactly a sow’s ear to a silk purse, but to some, it comes close.

Small-package shipping company Canpar’s new facility in southwest Toronto, developed by the Toronto Economic Development Corporation (TEDCO) recently received a “Brownie” Award from the Canadian Urban Institute (CUI) and official LEED certification, for excellence in energy efficiency and environmental sustainability, awarded by the Canada Green Building Council.

In 2004, TEDCO acquired a vacant 40 acre contaminated brownfield property in southwest Toronto that had been used for metal manufacturing since the early 1900s until operations ceased in the late 1980s.

Immediately upon acquisition, TEDCO initiated an integrated site management strategy to remediate and develop a portion of the site for a new state-of-the-art distribution and logistics facility to accommodate Canpar’s growth requirements.

Said Jeffrey Steiner, TEDCO’s president, “our mandate is to help grow business, jobs and employment in Toronto, and our Canpar Distribution Facility delivers both economic and environmental benefits to the community.

We have taken a vacant and underutilized property within the city, preserved the lands for employment uses, and developed an

F

16

energy efficient green building which exceeds Canpar’s operational requirements.”

Keeping with its corporate objective to support sustainable redevelopment, TEDCO incorporated advanced design and construction elements into the new building to achieve LEED Certified status. The major LEED elements relate to reduced energy consumption, improved water efficiency and enhanced indoor air quality for employees. On July 25, 2006, Toronto City Council recognized TEDCO’s achievement of developing the first City-owned LEED green building. This high performance building will achieve energy and water savings of 37 per cent and 70 per cent, respectively, compared to a similar building of conventional design.

Along with the LEED certified status, on October 26th the project earned the CUI Brownie Award for excellence in Implementation and Process. The annual CUI Brownie Awards recognize leadership, innovation, and environmental sustainability in brownfield redevelopment across Canada.

TEDCO and the other 2006 award winners were announced at the Canadian Brownfield Conference held at the Toronto Congress Centre on Dixon Road.

Phase 1 of TEDCO’s Canpar initiative incorporated a remediation plan that included: below grade demolition, removal and recycling of old building slabs and foundations for reuse in new building

Building Strategies Winter 2006/2007

development; groundwater treatment; excavation and reuse of metal impacted soils; installation of a permeable reactive barrier (PRB) along the site border; on-site groundwater monitoring wells, and air quality monitoring to protect the environment.

The project was completed on a design/build basis. It involved Maple Reinders Constructors Ltd. as the design/build contractor, Architect Jackson Ryder, Jacques Whitford for Environmental, Enermodal Engineering for LEED certification, RBC Capital Markets as financial advisor and WeirFoulds LLP to address legal issues.

TEDCO is designated as Toronto’s principal redevelopment entity with authority to explore, pilot, and implement incentives and redevelopment tools, as permitted by Provincial legislation and regulations. TEDCO is strategically aligned with the City's Economic Development Department and its strategy. As such, the new citywide focus of TEDCO is on the redevelopment of brownfields lands and under-utilized sites, mainly for employment revitalization purposes. The Port Lands area, where TEDCO owns or manages more than 400 acres of land, is also part of the broader Central Waterfront Revitalization effort.

TEDCO was incorporated in 1986 to pursue industrial development, and to attract and retain jobs in the City of Toronto. More details are at www.tedco.ca or via 416-214-4640. B

Legal Corner

By Duncan W. Glaholt

DUTY OF CARE IN TENDERING GIVES OWNERS A BREAK t has long been held that an owner owes a duty of care to a contractor in the tender process, but does an owner owe a similar duty to a subcontractor under that contractor? It took four appeals to four of the highest courts in Canada to get an answer to this question.

The answer, for the time being, is “No”. Back in 1996, the question came before the Ontario Court of Appeal, who did not have to decide the issue. They only needed to decide that even if a duty of care existed in theory, a breach of that duty could not be established on the facts of the case before them. (Twin City Mechanical v. Bradsil (1967) Ltd. (1999), 43 C.L.R. (2d) 275 (Ont. C.A.). In 1999, the British Columbia Court of Appeal took the same approach in another case where the issue did not require decision on the facts. (Ken Toby Ltd. v. British Columbia Buildings Corp. (1999), 62 B.C.L.R. (3d) 308 (C.A.). One year later, the Supreme Court of Canada had occasion to consider these two provincial Court of Appeal cases and held that it too did not have to decide this specific issue. Martel Building Ltd. v. Canada, [2000] 2 S.C.R. 860. Finally, this year, the issue did arise squarely before the Federal Court of Appeal. Reasons were released in Design Services Ltd. v. Canada on July 21, 2006.( [2006] F.C.J. No. 1141 (C.A.).

The facts in Design Services were as follows. Public Works invited bids for the construction of a naval base in Newfoundland. The general contract should have been awarded to Olympic, but was awarded to another contractor. In preparing its bid, Olympic relied upon the expertise, knowledge and work of six other companies that formed their design-build team. They relied on the services of an architect, a consultant and four subcontractors. For the purposes of the trial and the appeal, it was conceded that the bid had been awarded to a noncompliant bidder. Olympic eventually settled with the owner, but the rest of the design-build team carried on with their lawsuit.

In order to have a cause of action against the owner for breach of a duty of care, the companies first had to establish that there was, at law, a duty of care owed to them. This meant having to prove (a) that there was a sufficient degree of proximity such that it would have been in the reasonable contemplation of the owner that carelessness on the part of the owner might cause damage to the plaintiff companies, and (b) that there were no policy considerations negating or limiting such a duty. This is called the “Anns” test. (Anns v. Merton London Borough Council, [1978] A.C.728; Kamloops (City) v. Nielsen, [1984] 2 S.C.R. 2)

I

The trial judge had held that it was reasonably foreseeable to Public Works that the Crown's negligence in issuing the contract to the wrong bidder would result in damages to the six remaining companies and therefore found sufficient “proximity” to establish a duty of care owed to these subtrades. Furthermore, the trial judge found no policy considerations negating or limiting a duty of care. Thus, at the trial level, the court found the owner liable to the plaintiff companies in tort.

“

In order to have a cause of action against the owner for breach of a duty of care, the companies first had to establish that there was, at law, a duty of care owed to them.

The Federal Court of Appeal disagreed with this reasoning and result. With regard to proximity, the appellate court noted that all negotiations took place exclusively between the Crown and Olympic and did not involve any of the six plaintiff companies. While the plaintiff companies considered themselves a team, the bid was submitted by Olympic alone. Since Olympic was interposed between the companies and the owner, the relationship between them was held to be too distant and indirect to support a cause of action at law.

The court further held that considerations of policy favoured the idea that no duty of care be imposed in these circumstances. The companies were in a perfect position to protect themselves by bidding for the project as a contractual joint venture with the general contractor if they wanted, an option that was expressly contemplated by the tender documents. Moreover, the companies could have submitted proposals to other bidders as well. The appellate court held that justice did not require a finding of proximity. In the final result, the Federal Court of Appeal held that the owner did not owe a duty in contract or in tort to the architect, consultants and subcontractors.

Apparently the subcontractors’ motion for leave to appeal to the Supreme Court of Canada is pending. (S.C.C. Bulletin, 2006, p. 1196.)

We are all watching with interest to see if that court will take the opportunity to comment on this interesting area of the law. B Duncan Glaholt is partner, Glaholt LLP barristers & solicitors Building Strategies Winter 2006/2007

17

Workplace Health & Safety Corner

The cost of doing business Experience rating is a key element of the Workplace Safety and Insurance Board’s (WSIB ) workplace health and safety prevention strategies. Major changes to the CAD-7 WSIB construction experience rating will have a significant impact on the construction industry. xperience rating uses financial incentives to motivate and encourage employers to improve their Workplace Health and Safety and Early and Safe Return To Work (ESRTW) Programs.

The Workplace Safety and Insurance Board (WSIB) administers an experience rating plan, identified as "CAD-7", for the construction industry. CAD-7 is an acronym for Council Amendment to Draft #7. The WSIB sees the plan, prepared in consultation with the construction industry, as designed to encourage and improve safety in the workplace and also to more closely relate employer premiums to accident experience.

Construction companies with assessable premiums over $25,000 are experience rated under this CAD-7 experience rating program.

Work performance experience is assessed, and rebates or surcharges are determined based on that assessment. The work performance index is also used by employers in the bidding process to determine safety conscience bidders.

The WSIB reviewed the construction CAD-7 experience rating system and made numerous changes over the past several years to improve fairness and financial sustainability of the system. The changes to improve fairness align incentives more closely with actual health and safety and ESRTW performance and experience, and increase accountability for poor performance workplaces. The changes are as follows.

E

2005 Cad-7 Issue (2003/2004) • Lost time claims will impact experience rating only after eighth day

• Medical Aid claims with a Non Economic Loss (NEL) will no longer count as a lost time frequency • Reduction in expected injury cost from 30 per cent to 25 per cent reduces allowable injury cost.

• Rating factor increases from 100 per cent to 125 per cent • Accident Cost Index and Accident Frequency equal 50 per cent of the CAD-7 Firm Performance Index.

Eg. A construction company with $1.5 million of insurable labour, with two lost time claims and about $100,000 in accident cost in 2003 and 2004 would be allowed $16,500 in allowable injury cost and would be surcharged: $41,230.00. $16,500 X 1.25 (rating factor) X -2.00 (Firm Index) = $41,230 SURCHARGE (2.5 times the allowable cost =$41,230 surcharge)

2006 CAD-7 Issue (2004/2005) • Lost time claims will impact experience rating only after eighth day • Reduction in expected injury cost from 30 per cent to 25 per cent reduce allowable injury cost.

• Rating factor increases from 125 per cent to 150 per cent • Accident Cost Index and Accident Frequency equal 50 per cent of the CAD7 Firm Performance Index.

Eg. A construction company with $1.5 million of insurable labour, with two lost time claims

Five steps to improving your experience rating performance 1. Effective Health & Safety Program 2. Effective Health & Safety Program Implementation 3. Effective Claims Management Program

18

4. Effective Early and Safe Return To Work Program (ESRTW) 5. Reliance on your Safe Workplace Association or Professional Health & Safety Consultant

Building Strategies Winter 2006/2007

By Irv Thompson

and about $100,000 in accident cost in 2004 and 2005 would be allowed $16,500 in allowable injury cost and would be surcharged: $49,500.00. $16,500 X 1.50 (rating factor) X -2.00 (Firm Index) = $49,500 SURCHARGE (3 times the allowable cost =$49,500 surcharge)

2007 CAD-7 Issue (2005/2006) • Reduction in expected injury cost from 25 per cent to 18 per cent reduces allowable injury cost.

• Rating factor increase from 150 per cent to 200 per cent adds an additional 50 per cent to the result -- doubling the result over the past two years.

• Cost and frequency index limits will be changed from minus 200 per cent to minus 400 per cent maximum caps, increasing accountability to poor performers.

• Accident Cost Index will now be worth two thirds (66.66 per cent) and Accident Frequency will now be worth one third (33.33 per cent) of the CAD7 Firm Performance Index, placing the emphasis now on accident cost.

Eg. A construction company with $1.5 million of insurable labour, with two lost time claims and about $100,000 in accident cost in 2005 and 2006 would now be allowed $14,500 in allowable injury cost and would be surcharged: $116,250.00. $14,500 X 2.00 (rating factor) X -4.00 (Firm Index) = $116,250 SURCHARGE (8 times the allowable cost =$116,250 surcharge) These changes over the past three years are monumental. A good performer can increase their rebate by 200 per cent. However, a very poor performer can increase their surcharge by as much as 800 per cent.

In 2007, if your average expected cost is $20,000 per year, a poor performer could be surcharged from $40,000 to $160,000. B

Irv Thompson is president, The TRH Group www.trh-group.com

Economic Issues

Assessing project feasibility

Determining the cost and establishing the economic feasibility of a construction project is a complex process involving several key aspects, ranging from the costs of material and labour to the level of activity in the local construction environment.

20

Building Strategies Winter 2006/2007

By Duane Sharp, P. Eng.

E

stimating the cost of construction in Canada, until recent years, has followed the same pattern as generally practiced throughout the Americas. A significant characteristic of this process continues to be that construction companies must bid on the basis of several factors: knowledge of pricing, planning and administration of their construction companies, complicated by the short time frame during which bids must be prepared, as well as their ability to measure the material and labour components involved.

The traditionally-accepted practice in some other parts of the world – which has never caught on in North America – involves bidding on a common, guaranteed bill of quantities prepared by the owner's quantity surveyor. While the provision of preparing preliminary bid quantities is now common in Canada, the risk of determining the correct amount of work still remains with the bidder.

What are the major factors to consider when estimating the cost of a construction project? A number of elements come into the estimating equation, and this is where the expertise and experience of the quantity

surveyor/estimator can play a significant role, as described by Abu Hussein, regional estimator, Canadian Region, with CH2M Hill, one of Canada’s largest full-service engineering firms.

Hussein has over 34 years of quantity surveying/estimating diversified experience in the U.K. and Canada, involving more than 500 major projects (over 10,000 estimates), with a cumulative estimated value in excess of $10 billion. He has been lead quantity surveyor/estimator on over 400 of these major projects.

“Estimating the cost of construction and by extension, the economic feasibility of projects, is one of the most difficult topics to understand and misunderstand,” notes Hussein. “Generally, over half of project estimates are not prepared by professional quantity surveyors or qualified estimators.

This is one of the main pitfalls in the estimation process and in determining the overall economic feasibility of a proposed construction project. If a quantity surveyor/estimator is not involved in preparing the cost estimate for the project during all four phases of design, then chances are that on 20 to 50 percent of projects there will be major cost overruns and projects which appeared to be feasible initially were actually not feasible.”

“Quantity surveyors/estimators guide the design team to design on budget. In my opinion, there should be more flexibility in determining the overall economic feasibility of community projects in the public sector, like schools, hospitals, libraries, religious buildings, museums, etc., than it is on commercial projects. For public sector projects like schools and universities, it should be acceptable to spend perhaps 10 percent more on architectural features and 10 percent on energy efficient and durable materials. This percentage for specialized projects such as libraries, municipal buildings, museums, religious buildings, etc., may be as high as 25 to 50 percent. The extra construction cost of durable materials is usually offset by operating cost savings when life cycle costs are considered.”

Scope creep “Another major problem,” says Hussein, “is what is referred to as ‘scope creep’ or major changes in scope during design, design delays and construction delays. With the training and experience they possess, quantity surveyors do a good job of estimating in a normal market by using books, past historical data, quotations and lead estimator judgment.

When a project is assigned an inadequate estimating fee, a lot of time is spent on the quantities and never enough on pricing. Time allowed for estimating should be increased by 25 percent to allow for better pricing, which leads to better accuracy. Sub-contractors are busy and should be approached for pricing on specialized items only.

“Quantity surveyors try their best to adjust unit prices for the type, size, complexity, shortage of some materials, shortage of

skilled labour, location and duration of the project, among other factors,” he adds. “This process is augmented if the individual has had general contractor and sub-contractor estimating experience, which often allows them to do a better job in adjusting the book and historical input prices to get the output market prices, and hence achieve better results in project cost estimation. Since 2004, due to the volatile commodity market and shortage of skilled construction labour, estimating is very challenging.”

Life cycle costs The importance of the inclusion of life cycle costs into the project feasibility equation is supported by architect Brian Watkinson, principal, Strategies 4 Impact! Inc., and former executive director of the Ontario Association of Architects. Watkinson has been studying trends in the industry in Canada and abroad, and specializes in helping design and construction businesses manage their construction projects.

Watkinson notes that “until quite recently, the economic feasibility of a building project tended to be all about the capital construction cost and the ability to obtain and pay for financing. Assuming the prospectus could cover initial costs, and the cost of financing the project was judged to be feasible from an economic perspective.”

A major change that has taken place in the construction sector, which impacts cost estimation and project feasibility is that owners and users today have begun to give very serious consideration to operating and maintenance costs which extend over the life cycle of the building. As Watkinson points out, “careful design, including the studied selection of materials and building systems, can result in substantial savings for decades to come. As well, over the last 10 years or so, there has been a move on the part of clients, particularly in the public sector, to require independent verification of cost estimates.

With rising energy costs, increasing concern

about climate change and the environment in general, and a strong focus on corporate social responsibility, owners and developers are beginning to place strong emphasis on sustainable design. Specifying high performance buildings and LEED certification are becoming commonplace.”

Many sources suggest that a four to five percent additional investment in the capital construction cost can yield energy savings of 40 per cent and more, which can make a critical contribution to the feasibility of a building project, because those savings keep accruing year after year. Even public sector clients are beginning finally to connect the two ‘silos’ of capital and operating costs.

Other important issues involved in estimating project feasibility are: which pricing resources to use for which items of the estimate, and for which items to use input prices, output, or market prices. On long term projects, major challenges for estimators include which cost construction index should be used and whether to apply the cost index to tender date, start of construction or mid-point of construction.

In one case cited, for one particular city, one printed cost index was six percent and another 22 percent, a significant variation.

Most estimators are not sure which one of these input indices to use and how to apply it, and where a quantity surveyor/estimator uses experience and judgment or calculates the output index, it may not accepted, even though the output or market cost index brings the best tender results. Often, printed data needs to be drastically adjusted, especially in the current construction environment, and especially for large, unique and long term projects.

Project cost estimates to establish economic viability are a crucial component of the overall project development process and deserve adequate consideration alongside other project elements. Environmental considerations and life cycle costs add a further complexity to the determination of project feasibility. B

The growing role of quantity surveyors in Canada The profession most closely associated with and responsible for determining project construction costs is that of quantity surveyor.

Construction estimators were often quantity surveyors in earlier days, however, they often turned to other work since the profession was not widely recognized in North America or adapted to the industry practice of the time. It was only following the WW II that estimators/quantity surveyors began to enter Canada in significant numbers. At first, it was a case of working with the system as it existed.

An influx of quantity surveyors from the U.K. during the 1950s led to the formation of an organization to further the aims of their profession. In February 1959, a number of these quantity surveyors were invited to a founder members' meeting in Toronto, and the Canadian Institute of Quantity Surveyors (CIQS) was born.

In 1988, the Institute of Quantity Surveyors obtained the official mark Professional Quantity Surveyor and subsequently

has also registered the initials PQS and the French equivalents of Économiste en Construction Agrée and the initials ECA. The opportunity for members of this Institute to exert any notable influence on the estimation process has evolved only in the last 25 years, along with increasing recognition by government and industry of the quantity surveyors and estimators as possessing expertise on design, methods of construction and materials. The widening acceptance of techniques used by quantity surveyors, such as value management and statistical analysis, has resulted in significant contributions to the design and construction process.

Construction Estimator, Estimateur en Construction, and Construction Estimator Certified (CEC), Estimateur en Construction Certifié (ECC), are two new categories developed by the Institute to continue to promote the profession of construction estimating. Construction Estimator Certified (CEC), Estimateur en Construction Certifié (ECC) are registered official marks of the Institute.

Building Strategies Winter 2006/2007

21

Profile

Beating the clock an Not spending more time or money than necessary is now the likely focus of most shoppers at the RioCan Centre in Kingston, ON, but it was also the goal of the centre’s owner and builders.

By Susan Maclean n Dec. 11, 2006, RioCan Real Estate Investment Trust (RioCan), announced “that it has completed construction and entered into long term financing arrangements for RioCan Centre Kingston.”

The original RioCan Centre Kingston in Kingston, ON, was a fully leased, 518,000 sq.ft. new format retail centre, which included a user-owned 121,000 sq.ft. Home Depot.

Completed in 2003, the centre was leased entirely to national and anchor tenants including Sears Whole Home, Staples/Business Depot, The Shoe Company, Moores Clothing for Men, Future Shop/Best Buy, Winners Home Sense, Old Navy, Mark’s Work Wearhouse, Pier 1 Imports and Bank of Nova Scotia. It also features a stadium seating Cineplex theatre which is the only facility of its kind in Kingston.

RioCan Real Estate Investment Trust, Canada’s largest REIT, and Trinity Development Group Inc. co-developed RioCan Centre Kingston. RioCan acquired Trinity’s 50 per cent interest in 2002 to become full owner of this centre. In Dec. 2004, RioCan purchased 20 adjacent acres of expansion lands. Substantial pre-leasing of the expansion lands had been achieved to national and anchor tenants including Home Outfitters, The Brick, Best Buy, PETsMART, La Z Boy, and East Side Mario's.

This shopping centre has now been expanded by the construction of an additional 235,000 sq.ft. on lands adjacent to the existing centre. Including the retailer owned Home

O

22

Depot store, the RioCan Centre in Kingston now consists of more than 750,000 sq.ft. It houses the only stadium seating theatre in Kingston, operated by Cineplex, and includes such retailers as Winners, Old Navy, Sears, Michaels, HomeSense, Shoe Company, Mexx, Urban Planet, The Brick, Home Outfitters, Best Buy and PETsMART. In spring 2005, construction began on expanding the centre. RioCan entered into long term financing on the expansion and at the same time redid the existing financing on phase one of the centre, which was due to mature in Sept. 2007 and which currently carries an interest rate of 6.68 per cent. On completion of the new financing arrangement, which is expected to occur at the end of January 2007, the entire property will be subject to a new ten year mortgage at an effective interest rate of about 4.95 per cent with a principal amount of $90,400,000.

Trinity Development managed the expansion project with Trinity’s project manager Brad Desrocher co-ordinating the efforts of those who won the work through an open tender. They included: • Cornerstone Landscaping & Irrigation, Brampton, who began the landscaping Sept. 2005 and finished Oct. 2006.

• R.E. Hein Construction, Ottawa, who did a full turnkey with shell and interior fit-up on the initial 16,000 sq.ft. PetSmart building, beginning July 2005 and finishing Dec. 2005.

Building Strategies Winter 2006/2007

• Laurin Construction, Ottawa, who constructed the building B expansion, a 50,000 sq.ft. add-on to the PetSmart building beginning June 2006 and substantially completed early Dec. 2006.

• Mirtren Construction Limited, Trenton, who started April 2005 on the 100,000 sq.ft. Building A which includes The Brick, Home Outfitters, La Z Boy, Best Buy; and completed it around mid-October 2005; • Taggart Construction, Kingston, who started the site work in April 2005 and finished Dec. 2006.

• VCL Construction, Kanata, who was responsible for the 7,000 sq.ft. G Building, began in Aug. 2006 and substantially completed early Dec., 2006.

The architect was R.F. Lintack Architect Incorporated. As architect at this Hamilton, ON, firm, John DeSimone served as landlord architect for The Brick, Home Outfitters, La Z Boy, Pet Smart, Dollarama and new Jysk Bed & Bath. R.F. Lintack has been working with Trinity for 10 years, creating modern shopping centres in Oakville, Mississauga, Sudbury, Moncton, Kingston, Ottawa and Arnprior.

Although DeSimone notes that this shopping centre went ahead fairly easily with very good contractors, such projects are infamous for unrealistic deadlines that those involved in the construction are forced to meet. “Because of the pen of some leasing person, you’re obliged to meet a deadline that is too tight and yet to fail to meet it would be

d staying on budget in violation of a contract,” he says. “It’s tough to change that.”

As a result, building these centres is a very quick process. Buildings are typically steel framed boxes with typical wall assemblies.

Another concern is making these buildings as energy efficient as possible.

DeSimone reports that this project was a first for Trinity in applying Bakor AIRBLOC 07, a mastic air and moisture barrier, on the

“

managed the work from design and issuing of contracts through to project completion.

Project manager Brad Desrocher has been with Trinity Development for four years. He is currently the project manager for the 800,000 sq. ft. retail complex in Calgary – “a massive undertaking four times larger than Kingston” – to the end of 2007 or early 2008.

This project is Trinity’s largest and is about four times larger than the Kingston centre

“Because of the pen of some leasing person, you’re obliged to meet a deadline that is too tight and yet to fail to meet it would be in violation of a contract”.

exterior walls. “It costs more money but it makes a better envelope,” he says. This brings not only an energy efficiency benefit but also by spraying a superior quality air and moisture barrier on the exterior walls and once the roof is complete, construction of the interior of the building can proceed while the external building detail is finished. This fast tracking saves the time consumed by waiting for the outside to be completed and then turning to the inside.

He finds that Tyvek stucco wrap is messy and one only puts up as much as is needed each day. Using the Bakor roofing and waterproofing products instead helped R.F. Lintack give the contractors an area where they could speed up the process with construction proceeding simultaneously on both the inside and outside of the building.

Also, in the interest of speed, he says that rather than specifying down to the last detail, they have found it works better to give contractors the flexibility to work with products – such as window frames, for example – with which they are familiar and comfortable, provided the products meet the owner’s criteria.

He notes they also try to avoid winter construction, although that is sometimes inevitable. “The walls are typically 25 ft. tall so rather than try to heat these massive airflow areas, we try to squeeze the construction into the warmer months.”

As construction managers, Trinity Development developed the land, oversaw and

expansion project.

Desrocher recalls that there were only a few issues in the otherwise smooth Kingston project which he says “was on time and on budget” even though a Hydro Ontario labour strike pushed the opening dates back.

Another issue was the proximity of the construction work to the hydro lines which evoked additional labour costs and time. “We had to take extra precautions because we were within the 1.5 metre no work zone,” says Desrocher. “We arranged for the utility grid to be shut down when we were encroaching on the power lines in that 1.5 metre no work zone. The utility grid fed an industrial area to the northeast so we could only work on the weekend. It took some negotiating and incurred additional costs to shut down.”

The site had to have some remedial work done on the soil because it had been a marshy farmland area and had a large concentration of organic material. An area of topsoil on the south end was excavated with the help of Stantec Consulting. Once undisturbed layers of soil were exposed, it was built up with native engineered fill. “It wasn’t a surprise,” Desrocher recalls. “We did bore hole testing so we had a guess as to the volume of the poor soil conditions.”

Rock removal was also required to enable the site services to be brought in. “These are items we guess at at the time of tender,” he elaborates. “We can’t tell until we get in there.

Bore holes are done periodically and infrequently so there could be an outcropping of rock we don’t know about.”

Another challenge was locating the pylon for the centre sign in such a way that it was on the property but not obstructing the view for cars. This was resolved by bringing it as close as possible to the paving structure. It was located on a slope with a massive foundation to prevent an overturning moment.

In announcing the completion of the project in Dec. 2006, RioCan president and CEO Edward Sonshine, Q.C., said the Kingston centre “is representative of our strategy of owning the dominant power centre in secondary markets while focusing most of our efforts on Canada’s six major markets. By securing in long term financing on this property, in the current advantageous interest rate climate, we have assured many years of solid and growing cash flow from this property.” B

These photos from R.F. Lintack Architect show two of the buildings in the expanded RioCan Centre Kingston Project.

Building Strategies Winter 2006/2007

23

Project Tendering

tendering and contract awarding processes

Recent changes to

New contract tendering and award processes are being implemented in both public and private sectors to streamline the sometimes lengthy bidding process and to ensure that a fair bidding and payment system is in place for the trade contractor.

By Duane Sharp, P. Eng.

t the heart of the construction sector in Canada is a contract tendering and awarding process which determines which companies get the contracts and at what value. Some recent initiatives by government and industry are expected to improve the construction process for both customers and contractors.

The tendering process itself involves a number of layers of participants – general contractors, trade sub-contractors and material suppliers, as well a number of professions, from architects to engineers, each of whom will play a role in the project when it is awarded.

Over the past several months, there have been a number of changes in tendering procedures in the government sector and initiatives have been established among the building trades in Ontario to improve the contractual process for tradespeople, for both public and private sector projects.

A

Feds cancel reverse auctions At the federal level, a major change has been made to the tendering process as a part of procurement reform to modernize the way government buys goods and services. Recently, Minister of Public Works and Government Services (PWGSC) Michael Fortier removed reverse auctions from the federal government

24

Building Strategies Winter 2006/2007

procurement process, a move that was welcomed by the construction industry.

Reverse auctions (also commonly referred to as ‘competitive bidding events’), are an Internet-based method of bidding for the supply of goods and services. The growing use of electronic commerce has led to some owners/purchasers exploring the use of this procurement method (see side story), including the procurement of construction services. The intent of reverse auctions is to hold a live, online bidding competition, with the successful bidder determined by the lowest price submitted to the tendering authority at the conclusion of the auction.

Why should reverse auctions not be used for construction? The Canadian Construction Association (CCA), in consultation with several organizations from the construction industry, including its own Standard Practices Committee, the General Contractors Council, the Trade Contractors Council, and many local construction associations across Canada, has expressed grave concerns on the use of reverse auctions for the procurement of construction services.

While recognizing the value and benefits of Internet-based bidding and endorsing its use when intended to increase the competitiveness and efficiency of the construction tendering process, the CCA

points out that appropriate guidelines need to be developed and implemented, and is currently working with owners, contractors and other construction industry representatives to develop these guidelines.

However, the concept of a bidding auction is a radical departure from the principles of recommended construction procurement practices, and is strongly opposed by the CCA and its constituent representatives.

Some of the drawbacks of the reverse auction process on construction projects are described in CCA documentation.

For example, owners, contractors and design professionals are familiar with the traditional bidding process and clearly know what obligations they must meet in order to fulfill their responsibilities. The reverse auction process is not designed for construction procurement, thus its use creates greater likelihood of disputes, bad faith and an increased risk of claims. By respecting prevailing industry bidding practices, owners demonstrate commitment to the project and lend greater credibility.

Under traditional bidding practices, the owner is receiving a contractor’s absolute best ‘competitive’ price outright for providing the services required. Internet auctions encourage contractors to initially submit artificially inflated prices, knowing that there will be an opportunity to re-submit a more competitive price. As a result, an owner runs the risk of not receiving the contractor’s best competitive price. In other cases, this can also lead to ‘cutthroat’ pricing by contractors, inevitably forcing them to cut corners to cover the difference from their best competitive price and invites greater potential to compromise the quality of a project.

Traditional bidding practices have mechanisms in place to deal with governing laws and regulations, bid and contract security, mistaken bids, issuance of addenda, whereas reverse auctions may be governed by the laws of the location of the auction’s service provider, which is often remote from the actual construction project’s or owner’s location.

As well, the extension of bid closing times and the ability to re-submit prices as allowed by reverse auctions can be interpreted as a form of pre-closing negotiation or ‘bid shopping,’ which is discouraged within the industry as it compromises the spirit of a fair and open competitive process. Moreover, for public owners, reverse auctions may contradict certain existing and proposed trade agreements.

"We are very pleased that the Minister has heard our message against the use of reverse auctions,” noted Michael Atkinson, CCA president. “In the construction industry, reverse auctions distort traditional bidding methods, and we hope that the federal government's abandonment of their use will send a clear signal to other owners, both public and private, that they are unacceptable for construction procurement."

As part of the government’s procurement reforms, PWGSC is issuing a series of standing

offers with suppliers of commonly purchased goods and services, known as Requests for Standing Offers (RFSOs). As well, the federal government continues to consult with the construction industry on procurement reform.

Trades contractors and the bid depository One sub-sector of the construction industry which is undergoing changes in the contract bidding process is the construction trades.

Earlier this fall, a revised bid depository process was initiated by a group of Ontario trade associations to encourage and maintain the integrity of construction tendering in Ontario by providing a consistent and transparent tendering structure and process.

The bid depository system was first established in Ontario in 1957, and revised in 1974, to what is referred to as the ‘10th edition,’ which is the version of the system which exists today. The primary changes in the 10th edition were an effort to make the bidding process fairer, initiate bonding in the process for both trades and general contractors, often both performance and financial, and to install a fee payment structure to support the bid depository.

“The bid depository system is a method of receiving sealed tenders from trade contractors, thus assuring the sanctity of bidding,” according to Tom Vivian, executive director of the Construction Bid Depository of Ontario (CBDO). The CBDO requires the trade contractor to submit his tender in accordance with project plans and specifications, and bonding is now a requirement for trade bidders, when bidding over a specified dollar amount. Those subcontractors receiving tenders obtain firm quotations in writing and in adequate time to compile their own bids completely and accurately, on an understood and previously agreed scope of work common to all bidders.

The sealed tender is delivered to the specified bid depository office at a specified date and time and is deposited in a designated locked box.

“The CBDO is incorporated as a not-forprofit entity, meeting its financial needs through successful bidders' fees, sale of bid depository tendering forms and envelopes and through supporting trade association funding,” noted Vivian. “The founding members of the CBDO were five Ontario trade associations -mechanical contractors, electrical contractors, brick layers, roofers, and automatic sprinklers.”

Founding member associations met in the spring of this year at a meeting of the National Trade Contractors Coalition of Canada, after an effective strategic planning session in the fall of 2005. At this latest meeting, the Coalition membership agreed to move forward with several initiatives of common interest, with a focus on three of these issues as priorities: the promotion of the bid depository system across Canada, getting paid promptly for work performed, and the promotion of unaltered forms of industry standard contracts.

“One of the activities we set in motion,” added Vivian, “to ‘kick-start’ the bid depository campaign across Canada, was a promotional initiative which includes traditional and webbased marketing and communication strategies, along with the creation of a promotional video in support of bid depository use. We are currently working with third-year students at George Brown College to collaborate on the first phase of this national campaign, and a marketing and communications strategy is in development, with the video scheduled for completion in early 2007.”

The Coalition has also entered into negotiations with presenters, entertainers, industry professionals and venues to present an original series of seminars and workshops to promote the issues of prompt payment and the use of unaltered forms and contracts. The purpose of these productions is to bring forward the significant impact these issues have on all contractors and the industry, in an entertaining and educational format.

Limitations While the CBDO system has some benefits to offer to contractors in the construction industry, it has its pros and cons, according to Steve Fogarasi, chief estimator at Kenaidan Contracting Ltd., of Toronto.

“There are definitely some benefits to the bid depository system,” noted Fogarasi, “and we have had various iterations over the past number of years. However, from a contractor’s viewpoint there are some limitations and drawbacks to the current system. For general contractors, the system often poses problems if the rules are not followed. For example, the trade bidder is allowed to withdraw a bid under certain time conditions, and when this occurs, for perfectly legitimate reasons – or not – on the part of the trade bidder, it may leave the general contractor without a preferred trade bid.

“Another aspect which can pose problems is area of responsibility, where there is an overlap of contractor/trade responsibility for various project elements, based on drawings and specifications, and in some cases disputes have arisen on this issue. The system does provide an advantage for the trades, in my view,” he added.

“On the other hand,” he noted, “when the system works, there are some advantages over a system without a bid depository, because it tends to formalize the bidding process.

Generally speaking, general contractors are neutral on the benefits of the system, and owners do not like it. It seems to work better outside larger urban centres in Ontario.”

These modifications to the tendering and contract awarding process should enhance and streamline business practices in the construction sector to the benefit of all parties, bringing federal government procurement methods in line with the CCA’s preferred tendering process, and establishing a level playing field for trades contractors. B

Building Strategies Winter 2006/2007

25

Renovation Supplement

Seneca College

gives reno option top marks

By Susan Maclean

S

eneca College of Applied Arts and Technology is the largest college in Canada with more than 100,000 full and part-time students on campuses across the Greater Toronto Area. When it needed a campus location in Markham, ON, it had looked at greenfield sites but new construction proved to be very costly. Since many students drive now, parking was also an issue.

One property considered was about six acres but it was realized that if a new 100,000 sq. ft. facility was built now with plans to enlarge it as enrolment grows, the sur face parking would take up nearly the rest of the property. Building a structure for parking would be a very expensive alternative.

André Charron, a civil engineer under contract as project manager with Seneca College, estimates that the cost of using an existing facility might be 40 to 50 per cent that of building new.

So, the College looked for an existing facility and eventually the former Allstate building, a 256,000 sq. ft. property with 27 acres, came up for sale. Although a 10storey office building is far different from a normal post-secondary facility, it was determined that it would be a good investment given that it offered building space to grow into and there was ample parking space.

The building was purchased at the end of 2003. After a design competition was held in the spring of 2004 and the site was rezoned, construction began in May 2005.

The first students were using the facility in Sept. 2005 and even more students arrived the following January with more of the building turned into classroom, labs and teaching floors. Charron reports that the bulk of the $10 million initial phase was finished in the spring of 2006.

Bringing up to standard Massive air handling units had to be added to bring the air requirements of the building built in 1986 up to today’s standards and to meet the needs of the more heavily

26

populated usage of the building.

Classrooms typically have 40 students to perhaps 1,000 sq. ft. which is a higher density than the building’s originally intended office use. As the building is tiered like a wedding cake with every second floor set back with terraces, holes could be cut into the third to the ninth floors, bringing in additional fresh air. Occupancy sensors were installed in classrooms and labs to save heating or cooling those rooms when they are not in use.

The building’s greater population also required more emergency exiting. A glass enclosed stair to the eighth floor was added to the exterior of the building at the front. It also serves to tone down the corporate look, Charron says, as does the large red Seneca sign above the entrance. The emergency stair is enclosed in glass and offers a nice view which makes it inviting to be used.

The core has only four passenger elevators. “We knew we had a problem but the cost of adding more elevators was prohibitive,” Charron recalls. The solution was found by building “a convenience stair” in the four-storey atrium. “We find asking students to go up and down stairs is acceptable. When the building is fully occupied in 2008, the elevator service will be more limited than it is now and students will naturally turn to use the stair.”

The $4 million phase two started June 2006 and includes a lecture hall in the garden level of the building, more labs, offices and classrooms, plus a small, sloping interior parking facility is being turned into a small lecture hall. Allstate’s cafeteria was kept as is. This phase also includes a new chiller as the existing two chillers would not be enough for the eventual occupation. Similarly, this phase includes the addition of a second emergency generator to increase the capacity since this location is the emergency backup for all the Seneca campuses.

Initially, the existing fire alarm system without any alarm annunciator panels was left as is, but Charron reports that after discussing it with the City of Markham,

Building Strategies Winter 2006/2007

Seneca has decided to upgrade it and add an annunciator in the component handling and cleaning facility room.

Future renovation plans Plans are being developed for the higher floors with some consideration being given to research facilities. The top floor is occupied by various Seneca administration entities – Seneca’s Corporate Training Centre, Office of Research and Innovation, and Business Research and Intelligence Centre – and serves all the college’s campuses.

In contrast to most office environments, student lounges at the back of the building overlook a pond and Markham. Charron says these are smaller lounges than the college would provide if there was just one large common space, so one was placed on every academic floor. Seneca also built a recreation centre for students.

Lighting was another renovation detail.

To increase the lighting level, Charron says they reused the square fixtures but changed the lenses.

The 20,000 sq.ft. floor plate has teaching areas on the perimeter of the floor to take advantage of the 20-year-old windows which allow lots of daylight – in fact, an amount of natural light not normally available in classrooms. “In other locations we have had to add skylights because they were so dark inside. It’s a built-in advantage here,” says Charron.

Renovating an existing building is “always a guessing game,” he adds. “We have tried to use as much as we could. It is a Class A building; well designed. The lobby and interior is a more higher finish than what you would normally see in a Seneca campus. It’s nice for students to have a well-finished building.”

“We are proud of its transformation from a corporate workplace into a centre of learning for our many students,” announced Jean Anne McLeod, chair of Seneca’s Board of Governors, at the official opening of the Markham Campus on Dec. 7, 2006. B

Renovation Supplement

Quieter hydro-demolition

Boosts Concrete Repair

F

or the rehabilitation of deteriorated or contaminated concrete, hydrodemolition is by far the quietest option – and that’s not an insignificant consideration for property managers of commercial and residential buildings alike, reports Nyla Matuk, communications and marketing manager with engineering firm Read Jones Christoffersen.

In an article in sister publication Canadian Property Management, Matuk notes that “the system comprises a highpressure water pump, a robotic cutting tractor and a support vehicle or trailer that carries the pump, cutting tractor and other parts and tools. A water jet is directed at the concrete at variable levels of intensity and for specific levels of depth for removal.

The rotation speed of the pump nozzle, the way it is angled, its height above the surface, and the water jet’s velocity all work to execute the type of demolition that is desired. It’s not only quieter than a jackhammer, it’s a lot more sophisticated.”

Matuk writes that a cost-benefit analysis of the jackhammer method of concrete removal for the rehabilitation of a condominium parking garage calculated that the costs for hydro-demolition were less than 10 per cent higher in comparison to the jackhammer method. Because the

“

Hydro-demolition proved the option of choice at the six-level underground parking garage for the Hamilton, ON, downtown core. Its approximate 800 parking stalls are below the Hamilton Convention Centre, the Hamilton Art Gallery, an office building and a government building. City by-law restrictions at night have limited percussive work to two hours only, from 6 to 8 a.m., Monday to Friday.

The facility is now in the fourth year of a five-year repair program, employing hydrodemolition for all concrete slab repairs. The scope of the program includes the removal of the existing asphalt waterproofing system, surface, soffit and through-slab concrete repairs and the installation of a new thin traffic deck coating.

A significant reduction in airborne noise levels was reached, with under 75 dB at six metres (20 ft.) with the use of hydrodemolition compared to a considerably higher 100-120 dB at six metres with the use of jackhammers. In addition, hydrodemolition obtained a 100 per cent reduction in the transmission of noise through the structure into the other buildings of the complex.

Hydro-demolition can remove concrete more rapidly, translating into a reduction in construction time. When there is a need to maintain traffic flow and pedestrian access,

Dust generation and, thus, the potential for silicosis is reduced. Hydrodemolition is also less damaging to the structural integrity of the portion of the concrete slab that is left in place, whereas jackhammers typically produce micro-fractures in the slab.

In tensile bond strength tests, it has been proven that the bond between the repair material and a hydro-demolished surface is much stronger than the bond strength between a repair material and a jackhammer-prepared surface. Because good bonding is critical to the long-term performance of repair materials, a maximum amount of surface area for bonding of the repair patch material is required. Hydrodemolished surface profiles deliver this because they are very rough. B

Hydro-demolition can remove concrete more rapidly, translating into a reduction in construction time.

When there is a need to maintain traffic flow and pedestrian access ... the phasing of the work coupled with the shorter duration of the work will only add to its relative lack of disruption.

technology is in a continuous state of improvement, as contractors become more familiar with it and begin to use it more frequently, it is anticipated that cost premiums will go down.

as is the case with the majority of commercial and residential buildings, the phasing of the work coupled with the shorter duration of the work will only add to its relative lack of disruption.

ABOVE: Hydro-demolition proved the option of choice at the sixlevel underground parking garage for the Hamilton, ON, downtown core. Its approximate 800 parking stalls are below the Hamilton Convention Centre, the Hamilton Art Gallery, an office building and a government building.

Building Strategies Winter 2006/2007

27

Renovation Supplement

because the program covers only three years and the incentive funds are limited.

"The process involves making energyefficiency strategies, doing implementations, verifying the savings achieved, and then applying for the incentives," he said. "You can start by looking at heating, ventilation and air conditioning systems, general lighting and parking garage lighting. These are all areas where great savings are possible."

Lemoine offered this advice to managers of commercial buildings in Toronto:

Energy efficiency advocate urges take-up of

BOMA incentives

O

wners and managers of commercial buildings in Toronto should plan now to retrofit and take advantage of a new program that is offering $60 million in energyefficiency incentives, says Yves Lemoine, vice-president of Engineering and Business Development at Toronto Hydro Energy Services, which provides energy-efficiency projects to customers throughout Ontario.

Lemoine was on a panel discussing the new Conservation and Demand Management Incentive program launched in November at PM Expo, Canada's largest annual property management exposition and conference. The panel outlined the conservation-and-demand management program involving BOMA (Building Owners & Managers Association of Greater Toronto) and the Ontario Power Authority. Also on the panel were: Chuck Farmer, Director of Business Market Channels, Program Operator and Sector Development, Ontario Power Authority; Mike McGee, President of Energy Profiles; and Doug Taylor, BOMA Program Manager.

"This program is a tremendous opportunity to invest in energy-management solutions," Lemoine said. "By upgrading your building's operating system and improving energy efficiency, you will increase asset value and reduce operating costs by as much as 20 per cent."

28

The Conservation and Demand Management Incentive program is targeted at multi-use, commercial, office, retail and hotel properties with at least 25,000 square feet. It aims to deliver 150 MW of measurable, verifiable savings within Toronto's commercial building stock over the next three years. The program requires engineering assessments of energyefficiency measures and offers incentives based on $400 per kW saved or $0.05 per kWh. In total, the program is offering $60 million in incentives over three years.

"Energy costs are comprising a greater percentage of operating costs and will only increase in the future," Lemoine said. "But many buildings can achieve energy savings of 15 per cent and the Return On Investment (ROI) for energy-saving projects can be anywhere from 25 to 35 per cent so this is a low-risk, high-return investment. For example, a 100,000 square feet commercial building could save up to $50,000. It just makes a lot of sense."

The province of Ontario is committed to reducing electricity use by at least ten per cent by 2007 and according to Lemoine, owners and managers of commercial buildings can all do their part. He offered concrete suggestions on where energy savings can be achieved in their buildings and how they can access the incentive funds, but added that they should act now

Building Strategies Winter 2006/2007

• Look at your existing energy systems to see where energy is wasted.

• If your 2007 budget has already been set, defer items from 2007 capital budgets that aren't urgent, and replace them with an investment in energyefficiency projects. This allows you to proceed without delay in applying for to the BOMA program and getting access to incentives.

• Start your planning for 2007, 2008 and 2009 now so that efficiency investments can be budgeted for.

Ensure your plans are action oriented and scheduled to ensure that projects meet delivery timeframes consistent with the BOMA program.

• Consider new technology like energyefficient light fixtures, which allow you to use fewer fixtures and get better lighting, and make this part of a retrofit to an existing system.

• Do a detailed cost-benefit analysis of your new energy-management systems so you'll know how much money is saved annually, how much more efficient the system has become, how long the payback will be, and what the return on investment will be.

• Ask for savings guarantees from your service providers and use a service provider that can handle your projects turnkey. This helps ensure that the project being conceived matches what gets engineered and installed and ensures you get the maximum incentive from BOMA. Lemoine cited examples of buildings that have already achieved significant energy savings: a new lighting system in the underground parking garage at Commerce Court on King Street, which cut overall energy usage by more than half and reduced lighting maintenance costs to almost zero; the General Motors plant in Oshawa which saved almost $2 million in annual utility costs; and the Lotherton Condominium Complex which reduced its natural gas costs by $140,000 a year. B

Updating security with integrated systems

Advertising Index DISPLAY ADS Alliance Verdi

9

Coldmatic Building Systems

19

Glaholt LLP

13

GE Electrical Distribution

In renovations and remodels, most commercial organizations also consider updating their security surveillance systems. Here are some items to consider from GE Security.

T

Lanxess

3

Schnieder Electric

4

Travelers Guarantee

IFC

TRH Group

15

Tri-Phase Enviromental

OBC

PRODUCT SHOWCASE DISPLAY ADS

By Robert Siegel he future of both surveillance and security systems lies in an open architecture foundation based on customer input. In a perfect world, companies or organizations could purchase brand-new, complete digital packages that include every aspect of security, from the cameras to the DVRs to the access control, fire and intrusion systems. They would all work harmoniously together over the IT network because they were all created to the same standards.

Unfortunately, reality is more complicated. Reality is where cameras are one brand, perhaps the favourite of the previous security director. The analog video recorders were another brand’s top of the line...a decade ago. The access control system doesn’t talk to the cameras or DVRs. It’s not being rude, however—it doesn’t talk to the fire or intrusion systems, either. In fact, it does not communicate with anyone, even you.

GE is a strong believer that, one day very soon, security and surveillance systems will be highly flexible, open and integrated, because customers are demanding it.

Though some manufacturers want to control all aspects of their security systems, that is not where the security industry is ultimately headed. End users want a totally integrated solution, not isolated bits and pieces. The only way to achieve that is with open systems … open architecture.

A total, integrated surveillance solution brings together disparate hardware left over from legacy systems and lets all the pieces communicate, not only together, but with other security systems. It is integrated with other systems, including access control, fire and intrusion, and

IBC

trace detection. For example, once smoke is detected, cameras start rolling, doors unlock, digital video recorders record in high resolution and security managers are alerted via video monitors, PCs, PDAs, pagers or text messages on their cell phones.

Simply moving from analog to digital is the first step toward a total, integrated security solution. In reality, security and surveillance systems are going to have analog components for years to come. Few organizations can afford to make an overnight switch to Internet- or digital-based IP video.

But, it is possible to move forward into a digital solution while creating an effective bridge to bring along the analog past.

Today, users already invested in legacy analog systems can immediately begin creating an IP-based video network while continuing to use their existing analog equipment. They simply connect hybrid IP platform cameras, digital video recorders, PCs and servers directly to the network. Encoders/ decoders provide network access for currently used analog cameras and monitors.

As a result, anybody on the network can access any camera in the network to watch live, streaming video. Users can call up multiple cameras from any IP-equipped monitor or from their PCs using video navigation software. Such a platform can be used anywhere an organization needs to capture surveillance video and is especially beneficial in applications with multiple facilities such as banks and ATM kiosks, school campuses, office and industrial parks and retail chains. B Robert Siegel is general manager, Video and Software Solutions, GE Security.

GE

30

Lanxess

30

Thames Valley Brick & Tile

30

Reach buyers of construction.

They are true decision makers who are directly involved with purchasing construction-oriented products and services for their respective organizations and/or clients. The readers of Building Strategies include: Real Estate Developers, Building Owners, Property/ Facility Senior Managers, Architects, Consulting Engineers, General Contractors, Designers and Specifiers.

Advertise in Building Strategies CONTACT Brandon Vigon brandonv@mediaedge.ca (416) 512-8186 ext. 226

Building Strategies Winter 2006/2007

29

Product Showcase

Divison 16 Electrical

BreakMaster™ Product Description GE’s BreakMaster™ metal enclosed load interrupter switches provide dependable economical load switching and protection for medium voltage circuit applications.

Features Used mainly as a primary or secondary disconnect switch for transformers, the variety of configurations in which BreakMaster is available also makes it useful for specific distribution needs.

GE Consumer and Industrial Electrical Distribution For more information contact: Clmarketingcdn@ge.com or call us at 1 800 431 7867

Divison 3 Concrete

Bayforrox Synthetic Iron Oxide Pigments Product Description Available in powder and granular form, these pigments provide maximum colour intensity for use in all concrete products; ready mixed concrete, concrete blocks, bricks, roofing tiles and paving stones, segmented retaining wall units and architectural pre-cast products.

Features Unlimited colour possibilities to match virtually any product. Weather and fade resistant.

Properties, Performance. Effects on concrete – 28 day compression strength, initial or final set. Colour match of shipment.

Atmospheric curing stability. Water wet ability and solubility. Alkali and light resistance. Total sulfates.

Service Lanxess Corporation is renowned for its technical expertise in colour matching formulation and problem solving.

77 Bellfield Rd. Toronto, Ontario M9W 1G6 Tel: 416-248-3019

www.lanxess.com

Divison 2 Sitework

Endicott Brick Pavers Thames Valley Brick & Tile is a Canadian supplier of “Genuine Clay Pavers” from across North America, representing Endicott Products Company in Canada.

Features Recognized for their aesthetic beauty and elegance, Endicott’s line of clay brick pavers enhance any landscape setting. Available in 10 “Authentic Ironspot” colours, 27 different sizes, and thickness from 1-1/4” to 2-5/8” (31.8mm to 66.7mm), these brick pavers coordinate with Endicott extensive array of Face Brick, Thin-brick and Paver Tile units. Superior density and compression strength characteristics combine with a commitment to quality, assuring an unsurpassed paving product. These pavers exhibit an excellent record of in-place performance and meet the requirements of ASTM C902-02, Class SX, Type I. Laboratory tests document the quality of these pavers.

THAMES VALLEY BRICK & TILE Also Available · Detectable Warning Pavers, with a Braille-like detectable waning surface, are designed to meet ADA 4084 Fairview Dr. standards for detectable warning strips on elevated platforms or level surfaces Burlington, Ontario, L7L 4Y8 · Lugged Pavers, with spacer lugs on four sides, enhance speed and ease of installation 905-637-6997 · Step treads and pool coping units

www.thamesvalleybrick.com

30

Building Strategies Winter 2006/2007

...WHEN YOU NEED IT DONE RIGHT, YOU CHOOSE THE RIGHT COMPANY

WE ARE

THE

RIGHT

CHOICE

• Asbestos, Mold & Guano Abatement Services • Demolition/Decommissioning • PCB Management, Cleanup & Disposal • Excavation & Removal • Site Clean-up & Remediation • Underground Storage Tank Removal • Industrial Service & Power Washing • Onsite Hazardous Water Treatment • Water Damage Restoration

Tel: 905.823.7965

446 Hazelhurst Road

Fax: 905.823.7932

Mississauga, Ontario L5J 2Z7

www.pcbdisposal.com

www.triphaseenvironmental.com