Construction Business | January/February 2016 by MediaEdge

January/February 2016 Vol. 13 No.2

Surrey Biofuel Processing Plant PM 40063056

Bryan Wallner, CEO, RCABC | Infrastructure | Roofing Bonding & Insurance | 2016 Annual B.C. Construction Industry Survey

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Inside 06 Connections

Bryan Wallner, the new CEO of RCABC, is focusing on raising the association’s profile and enhancing value to members.

10 Feature Project

January/February| Volume 13 No 2

PUBLISHER

MANAGING Editor Contributing writers

Dan Gnocato dang@mediaedge.ca Cheryl Mah Jennifer Chan Ron Clay

The Surrey Biofuel Processing Plant will be the first closed-loop, fully integrated organics waste management system in North America.

Jack Davidson Carrie Fleming Monty Klein Karen Liu

21 SPECIAL SUPPLEMENT

Steve McConnell Fred Moroz

2016 Annual B.C. Construction Industry Survey

Peter Osborne Anne Stewart John Weninger Darryl Wind Bill Veenstra

Industry Focus

B.C./ALBERTA SALES

Dan Gnocato Tel: 604.549.4521 ext. 223

13 Roofing

Common Hazardous Roofing Materials A Historic Restoration Green Roofs for Stormwater Management

PUBLISHED BY

PRESIDENT Kevin Brown

18 Infrastructure

Are B.C. Water Systems at Risk? Efficient, Modern Transportation Infrastructure Contractor of the Year Awards

29 Bonding & Insurance Project Insurance Risks Bonding Benefits The Four Pillars of Bonding

Departments 04 Message from the Editor 34 The Legal File

Interface Agreements Honest Contractual Performance

37 Architect Corner

A Parametric Approach to Architecture

38 Industry News

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The Surrey Biofuel Processing Plant is currently under construction with the dispersion stack erected in January 2016.

February 24 & 25, 2016

Construction Business is British Columbia and Alberta’s construction magazine. Each issue provides timely and pertinent information to contractors, architects, developers, consulting engineers, and municipal governments throughout both provinces. Complimentary copies are sent bi-monthly to all members of the Architectural Institute of B.C., B.C. Construction Association, B.C. Roadbuilders and Heavy Construction Association, Consulting Engineers of B.C., Construction Specifications Canada — B.C. Chapter, Greater Vancouver Home Builders’ Association, B.C. Ready-Mixed Concrete Association, Independent Contractors and Businesses Association of B.C., Urban Development Institute of B.C. and Vancouver Regional Construction Association.

November 9 & 10, 2016

March 15 & 16, 2016

Editor’s Note

Infrastructure Spending

s we begin 2016, commodity prices and the loonie have hit historic lows, potentially signalling another rollercoaster ride for the industry in B.C. and definitely tough times for Alberta. The bright spot is the new Liberal government’s promise to increase growth with infrastructure spending — a doubling of federal investment for public transit, green and social infrastructure over the next 10 years. Recently, the federal government committed to fast tracking infrastructure investments for Alberta. Canada’s aging infrastructure is in urgent need of investment and renewal from bridges and roads to transit and water systems. The 2016 Canadian Infrastructure Report Card reconfirmed that urgency, finding that one-third of municipal infrastructure is in fair, poor or very poor condition. The report indicates that much

of Canada’s municipal infrastructure is at a critical juncture. Our look at infrastructure in this issue brings attention to the need for efficient public transportation and sustaining vital water infrastructure assets. According to study by BCWWA and Urban Systems, communities in B.C. will require at least $13 billion of additional investment to replace existing water and wastewater systems. Other features include roofing and insurance and bonding. Read about hazardous roofing materials, designing green roofs for stormwater management and the historic restoration of the Christ Church Cathedral. When it comes to roofing, RCABC is the leading provider of education, warranty programs and technological expertise. Meet new RCABC CEO Bryan Wallner, who plans on

raising the association’s profile and making sure the association maintains its leadership position in the marketplace. For our project, we spotlight the innovative Biofuel Processing Plant in Surrey, which will be the first of its kind, turning residential and commercial waste into energy. Being delivered as a public-private partnership, the facility will receive and process 115,000 tonnes of organic waste annually and output more than 7 million cubic metres of biogas.

Cheryl Mah Managing Editor

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Connections

Strategic Positioning Bryan Wallner is focused on making sure RCABC has a leadership position in the marketplace. By Cheryl Mah

career switch to roofing wasn’t exactly what Bryan Wallner had planned, but it was an opportunity he couldn’t pass up. As the new CEO of the Roofing Contractors Association of BC (RCABC), Wallner brings more than 20 years of senior management and business development experience to the position, taking over from executive vice president Ivan van Spronsen in August 2015. “I am excited about taking on this new challenge with RCABC and fortunate to be joining a respected organization that has led the roofing industry in terms of quality, standards and training,” says Wallner, who has been busy getting to know not only the organization but the construction industry at large. While the industry might be new, providing strategic direction, building stakeholder engagement, and implementing operational plans are all familiar territory for the 55-year-old as well as reporting to a board of directors. “Working as CEO and reporting to the board and ultimately the membership is very similar to my experience in the parking industry,” he says, adding although there has been a learning curve, his main focus is to further expand awareness of the organization and its programs and to ensure a leadership position in the marketplace. With Wallner’s background in operations and business development, it was exactly what the

construction business

board was looking for to move the association forward. “The board was looking for someone outside of the roofing industry with a strong business background and experience in revenue generation, strategic planning and training. They were looking for someone to take a look at the organization with fresh eyes,” says Wallner. “I’m here not to drive membership but to focus on positioning, pricing and delivering a product that successfully funds the association.” Born in Milwaukee, Wisconsin, he graduated with a Bachelor of Business Administration from the University of Wisconsin in 1983. His first job was managing the campus residence hall at the University of Missouri which included housing, food service and maintenance. He entered the parking industry in 1987 with a company based in St. Louis and spent 10 years there in progressive roles. In 1999, he was recruited to head Impark in Vancouver as president and to expand the business across North America. He was responsible for all facets of the company’s operations including strategic planning, business plan development and government relations. He then went on to become senior vice president for SP+ Corporation in 2011. When the opportunity at RCABC came up, he was attracted to the leadership role with an established organization.

January/February 2016

“There were a lot of different components and they all were of interest — from a very robust training centre to the Roofstar guarantee that we put to market,” says Wallner. Established in 1958, RCABC is an association of professional roofing contractors, manufacturers and suppliers. Members are responsible for the bulk of the work in the ICI sector but are also active in the multi-family strata sector. As the oldest roofing association in Canada, RCABC has been at the forefront providing leadership, education, warranty programs and technological expertise to the roofing sector. Long standing priorities for the association include education and training, improving technical standards and ensuring a skilled professional workforce. “There is a tremendous opportunity with the history and the value of this association in the construction marketplace,” says Wallner. “The board and members have endorsed a three year strategic plan and it’s our job now to move forward and execute on those initiatives.” Some of the goals under the plan include increasing the profile of the association and the Roofing Practices Manual and roofing standards; enhancing training and education as well as the value of the guarantee program. The RCABC’s RoofStar Guarantee Program (5 or 10 year) is a unique guarantee program that ensures quality materials are installed to specific

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Connections

standards by members. The program is backed by both the contractor and the RCABC Guarantee Corp and requires inspection of the roof by an independent third party. “Our number one focus is on the guarantee and figuring out the best way to price and deliver that into the marketplace. For the Roofing Practices Manual, we want to deliver it in a user friendly format to the roofing design community. Those two priorities executed properly all drive business back to our members and provide a valuable service to the building owners. The Roofstar Guarantee ties everything together,” says Wallner. The association is currently evaluating the length and term of the guarantee program. With 5 and 10 year guarantees about to expire, RCABC has a pilot project reaching out to institutional owners to see if there is interest in extending that guarantee with inspection and maintenance. “We’re also working with the insurance community to educate them on the value we can provide through that guarantee in reducing and mitigating risk for building owners,” notes Wallner. An independent research study recently completed on the RoofStar Guarantee by RDH Building Engineering Ltd. found that roofs completed with a risk managed approach manifest fewer warrantable problems than roofs completed under any other warranty program.

“It’s the first study that really demonstrates the value of a managed approach to roofing....and that the value of the RCABC guarantee is demonstrable and validated and produces less warrantable claims than any other program,” says Wallner. RCABC also prides itself on its technical expertise and the Roofing Practices Manual remains the definitive standard for roofing in the province. A great deal of time and effort (through due diligence and testing) is put into the manual, ensuring that specifiers and contractors have access to the latest standards and accepted products. “We want to deliver a cutting edge Roofing Practices Manual for the design community, member companies and stakeholders that is online in an updated format and easy to navigate,” says Wallner, who oversees a “dedicated team” of 17 including administrative personnel and training instructors at RCABC’s head office and training centre in Langley. Currently the association is looking for a manager to head up their key education/training department. “Once we have the new training manager in place, our third quarter goal for the board is to deliver new training programs or new course structures,” says Wallner, who also sits on the LNG job training committee. “We’re looking at additional training and certifications and increasing the number of apprenticeship classes.”

He adds how the association delivers training has changed due to the apprenticeship training age dropping from people in their 30s and 40s to their 20s. “We’ve had to completely revamp how we deliver the training — all the manuals and books have been replaced by a tablet,” he says. “One of our instructors is delivering her curriculum in a web game application and teaching people in a new and different way.” Sustaining a skilled workforce will be critical for the industry and the challenge in roofing is not only to attract people to the trade, but more importantly to retain them. “The skills shortage is real for us in a couple of ways. One is the lack of warm bodies entering the trades and then once they are trained in roofing to ensure they understand the long term benefit of growing within this industry. We see people not only leaving the trades, but also leaving to go to carpentry or some other trade,” he says. Despite the current economic slowdown, Wallner is optimistic about the outlook in B.C. with encouraging signs that things might be picking up. “Some leading indicators about this summer seem to be strong with lots of ICI sector work and additional government funding that should help. We’re optimistic about 2016,” he says. When Wallner is not busy working, the father of three enjoys coaching and volunteering.

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Feature Project

Turning Waste into Energy The Surrey Biofuel Processing facility will process residential and commercial kitchen and yard waste into a renewable fuel. By Cheryl Mah

new organics biofuel processing facility in Surrey will be the first and largest of its kind in North America. When completed, the facility will be the first closed-loop, fully integrated organics waste management system that will play an integral role in achieving the city’s sustainability targets. Being delivered as a public-private partnership (P3), the $68 million facility will receive and process 115,000 tonnes of organic waste annually and output more than 7 million cubic metres of biogas. The biogas will be captured, refined and then injected into the FortisBC grid. The facility will convert residential and commercial kitchen and yard waste into renewable natural gas. The natural gas (up to 160,000 gigajoules) will be used to power the city’s natural gas waste collection trucks, natural gas service fleet and new district energy system. The facility will also produce compost (up to 40,000 tonnes) suitable for landscaping and agricultural applications. A consortium led by Orgaworld Canada was selected by the City of Surrey to design, build, finance, maintain and operate the facility for 25 10

construction business

years. Partners include Stantec Architecture Ltd. and general contractor Smith Bros. & Wilson (BC) Ltd. Orgaworld is a Dutch-based company specializing in organic waste recycling with facilities in the Netherlands, the United Kingdom and Canada. “This project is a milestone for meeting the sustainability goals we have set for Surrey,” says Surrey Mayor Linda Hepner. “It will reduce CO2 emissions in Surrey by 40,000 tonnes a year

January/February 2016

— that’s equivalent of taking 8,500 cars of the road per year.” Construction started in April 2015 and completion is expected for early 2017. The 150,000 square foot facility is being built on 6.6 acres next to the Metro Vancouver transfer station in Port Kells. It is a tilt-up and cast-in-place structure with a structural steel roof deck, truss and joists. The project will include composting tunnels, biogas hybrid tunnels and a fully integrated odour abatement system.

Feature Project

Jeff Musialek, vice president at Smith Bros. & Wilson, reports the project is well underway with 80 per cent of the foundations poured. “We’re pouring the tilt up panels right now and the structural steel will arrive in another month.” The biggest construction milestone to date is the erection of the facility’s 230 foot high dispersion stack, which is comprised of four pieces each weighing approximately 176,000 lbs. Once operational, 100 per cent of the treated waste air

from the facility will be sent through the stack, making it a critical component of the facility’s state-of-the-art odour mitigation system. “The odour abatement system is comprised of a number of different systems including the dispersion stack... ammonia scrubbing, biofiltration as well as some cooling,” says Orgaworld project manager Ryan Lauzon, noting 150 - 200 people are expected on site at peak of construction in the spring/summer.

Integrating the building’s ventilation components to accommodate the facility’s complex processes will be key. “The entire structure is under negative pressure and maintained that way to enhance the process and as well to prevent any impact on the community. It’s a system we’ve developed over the last 20 years in Netherlands and optimized, especially the odour mitigation in Canada over the last seven years,” says Lauzon,

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Feature Project

The unique facility will set a benchmark for organic waste processing in North America.

noting the facility uses anaerobic and aerobic digestion technology. The technology and special mechanical equipment are new to North America and will come from a supplier in the Netherlands. “We had to adapt the European standards to North America and make sure the equipment meets CSA standards,” says Musialek, adding they also had to adapt the concrete mix design and paint coating system in order to accommodate the highly caustic/acidic nature of the materials inside the building. The one-storey biofuel processing area covers most of the building footprint with a three12

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storey administration area attached on the west end, which serves as the entry. The main administrative level houses offices and a laboratory. The second level contains the staff amenities and the third level provides space for visitors with a conference room and a roof garden. The administration area features a glulam structure with extensive glazing which is a striking departure aesthetically from traditional industrial building boxes. The facility will also be painted in different colour blocks to reflect the processes happening inside (eg. black for the waste receiving area) with green being the most prominent colour.

January/February 2016

“Stantec came up with a colour coding system to define the building to make it stand out,” explains Musialek. “The building is meant to be a prominent feature for the city where they can bring school kids and the public out for tours. Most of the time these types of buildings are hidden but this is a showcase for Surrey.” The project has been progressing smoothly so far, according to Lauzon, but the site did have soft soil which required some ground improvement work. “We had to use rapid impact compaction to prepare the site for construction. We spent a month and half rattling and banging to improve the site’s density,” he says, adding RIC is a cost effective technique as is the use of tilt-up construction. Erecting the walls with tilt-up panels is faster than building walls using traditional construction techniques. “Generally with any P3 projects the schedule is always very tight so continually delivering against the schedule is a challenge. Tilt-up will allow us to maintain that tight schedule,” he says. The unique facility will set a benchmark for organic waste processing in North America and serve as a model for green infrastructure projects. “It’s an amazing innovative project. I think every municipality should be looking at this facility,” says Musialek. “Landfills have been the way to deal with waste. This building will show that we can process materials in it with low odour and high quality materials coming out and a positive energy use for the community. It basically turns garbage into gold.” Lauzon agrees and expects more similar types of facilities in the near future, “It’s a groundbreaking facility for North America. The facility’s capacity for processing and sorting municipal organics and delivering biogas to the grid is in itself a great achievement.” Both credit strong team collaboration for the project running efficiently and smoothly. “We’ve had great co-operation from our partners — the City of Surrey, Smith Bros and Waste Treatment Technology out of the Netherlands. We’re proud to be part of a great project,” says Lauzon.

Roofing

Common Hazardous Roofing Materials By Monty Klein

Workers abating asbestos roof membrane.

A good example would be a sloped roof where the wood siding on an adjoining wall needs to be cut to install new step flashings. If lead is present any action that could cause dust like cutting, sanding, grinding or drilling will trigger the need for proper abatement measures. Like asbestos, the only way to positively identify the presence of lead is to take samples in for lab testing. Lead paint could be on window frames/sills, building trims/finishes, handrails or anything that may have been post painted.

Phenolic Insulation

here was a time when construction was not that concerned about hazardous materials. In roofing, we installed materials that were available and popular at the time, despite what they contained. Roofing today is far more sensitive to hazardous materials and those nasty materials of old are no longer installed in roofing assemblies. Today’s stakeholders are trained to deal with hazardous materials when encountered in an old roof. In this article we’ll have a quick look at the two most common hazardous materials associated with older roofs: asbestos and lead paint. There is another old roofing material, Phenolic Insulation, making its debut on the scene too.

Asbestos Asbestos can be found in some old roofing materials like felts, mastics, caulking, vapour retarders, adhesives, underlays, imitation slate products and in rare cases, asphalt shingles. The asbestos fibres were used as reinforcement and the danger when handling it is related to its “friability”. Any activity that results in airborne asbestos fibres is considered dangerous. Many of the old roofing materials encapsulated the fibres in asphalt, mastic or sealant and are not as prone to releasing fibres when handled. Thus, procedures for reroofing are generally rated as moderate risk. Worker protection when handling asbestos containing materials (ACM) is the same for both moderate and high risk activities, the difference generally being that moderate risk can be done in the “open” while high risk is done “inside” sealed enclosures.

Generally any roof that was installed prior to 1982 has the potential to contain asbestos. But it’s tricky and the date alone is not a reliable gauge. ACMs were not restricted to commercial or industrial roofing projects. Another twist is the possibility for an old roof to be asbestos free only to have it hidden in the mastics that were used under flanges of roof penetration flashings. It is not easy to identify — it takes a trained eye, familiarity with products from the past and lab testing to confirm the presence of ACM in a roofing assembly. The added impact to a project containing asbestos can be substantial and will slow down production, extend schedules, push out completion dates and drive up costs. Unfortunately this can be unnecessarily complicated when an entire project is declared “hot” just because one component (like mastic under a flange) contains asbestos. Most roofing contractors are not equipped to deal with abatement in-house. As a result dedicated hazmat demolition companies are commonly brought in to remove ACM for the roofers. This can become logistical hell as two trades, with differing ideas about production and keeping a building watertight, try to work together.

Lead Paint Paint containing lead is not new, but is impacting reroofing work. While it is generally thought that buildings built prior to 1978 may contain lead paint it is possible for lead to be present in exterior paint up to the late 1990s. Lead paint issues are usually associated where roofing interfaces with other building finishes.

Those familiar with today’s rigid roof insulations may remember back between 1980 and 1993 when phenolic insulation was considered the high performance roofing insulation to use. Phenloic (like today’s polyisocyanurate) is a rigid foam insulation with facers on both sides. While it was primarily aimed at “flat’ commercial type projects, it could be in any flat roof within the vintages stated. It could even lurk under sheet metal cladding. Phenolic insulation can be corrosive when it gets wet. It can be safe inside a roofing assembly for years until there is a leak, but once it gets wet it can release an acid, which in extreme cases can corrode steel building elements it comes in contact with. Risk to the building aside — what about workers that will be replacing this old roof ? It turns out that the dust resulting from removing a phenolic insulated roof can create that same acid inside a worker when breathed in or ingested. Currently there are no special precautions required when replacing an old phenolic insulated roof, but that may change. Stakeholders and owners of older buildings with phenolic insulated roofs should brace themselves for a new hazardous material to deal with. While it is too early to know for sure — it looks like abatement procedures for phenolic insulation could be very similar to those for ACMs. Phenolic roof insulation is difficult to identify and often mistaken for polyisocyanurate when encountered. Lab testing for phenolic is not as available as it is for asbestos. Reroofing is not as simple as it once was and is full of twists, turns and hazards that must be identified and handled appropriately. Strive to align the project with the most trusted, experienced and well-rounded firms that can help to navigate the hazards we know about now and those that might be coming in the future. Monty Klein, TQ, RRO, is director of roofing sciences at IRC Building Sciences Group. He recently merged his company with IRC.

January/February 2016

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Roofing

A Historic Restoration The final restoration phase of Vancouver’s historic Christ Church Cathedral includes a major roof replacement. By Ron Clay

ommenced in 1889 (with many later additions) ‘the Cathedral’ is the oldest extant church in Vancouver. When the city adopted the Vancouver Heritage Registry (now the Register) in 1986, Christ Church Cathedral (CCC) was listed in the ‘A’ category. Since 1979, much phased work has been done in preparation for the work which is currently underway — in accordance with a masterplan developed in 1995. In 1998/99 exterior landscape & plaza improvements (under the direction of Durante Kreuk Landscape Architecture) as well as stone façade upgrades were completed. Extensive interior work in the basement & Nave was completed in 2003/04 reinforcing footings and foundations, adding shear walls and a new organ. In 2005/06 a new elevator was added at the northeast corner — providing the ‘final leg’ of the seismic tri-pod for the heritage structure. In 2007 a roof condition assessment and report was completed by Wells Klein Consulting Group for the complete roof, including the predominant ‘imitation slate tile’ — a composite material roofing product installed in the early 80s (and apparently no longer in production). Testing of the roof system materials revealed asbestos in the building felt and tiles — requiring a prescribed systematic and controlled removal and disposal. The report noted: significant deterioration of the artificial slate product is visibly 14

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evident and a general loss of mass — has occurred over the installed life span to date (due in large part to the extensive organic growth which had taken root). The report further projected the end of the effective life of the sloped roof products by 2014/15 (well short of the expected lifespan of the roof product). The purpose of the current and final phase of the restoration then is to replace the roof (for critical weather protection, thermal and acoustic upgrades) while completing the seismic diaphragm — accepting the parameters of work-

Testing of the roof system materials revealed asbestos in the building felt and tiles ing on a designated ‘heritage’ building and the need to work closely with the City of Vancouver heritage planners under the purview of the Vancouver Heritage Commission. Proscenium has been working with CCC and construction managers Scott Construction Group for over a decade, with a great deal of input from the Iredale Group (the coordinating structural en-

January/February 2016

gineer and lead consultant on previous restoration phases) and RJC, the structural engineer of record. Completion is expected by the summer of 2016. Guiding principles for the upgrades to the building have always been: acoustic improvements (to combat downtown traffice noise), heating and ventilation upgrades (to replace outmoded equipment that supports the acoustic and comfort goals), and building safety (to protect and prolong the safe and continued use of the building with the introduction of seismic restraints plus the continuation of the sprinkler system coverage). The roof rehabilitation and diaphragm upgrade is considered the final phase of a voluntary seismic upgrade — in accordance with the 1999 VBBL (an indication that this has been an extensive and coordinated work in progress). The conceptual design for the roof replacement began with previous phases of the work. Current work includes the removal of existing plank decking and replacement with layers of plywood sheathing. The integral strength of the plywood is augmented by the truss of low-profile HSS members fixed diagonally across the diaphragm and transfering loads to the concrete shear walls. The diaphragm is well anchored to the existing roof frame with closely spaced screws to wood joists (and to the more robust blocking) and lag screws to existing wood trusses. Dywidag — full height

Roofing

threaded bar anchors have been drilled vertically into inconsistent stone walls and grouted with a polyester sleeve, positioned in key locations both to provide reinforcement to the stone walls and to provide anchorage points between the wood diaphragm and the stone walls. A building of this age with its multiple additions and re-constructions is not without its share of ad-hoc construction. A good deal of time is spent reviewing the inconsistencies, and considering the options to fortify or to replace — to mitigate the ‘apparent mistakes of the past’. Construction schedules and budgets are stretched especially when hazardous materials are revealed to be more extensive than originally confirmed. Following a review with Heritage and weighing the constraints of the budget against the expectations of durability and design appropriateness — a commitment was made to approve a batten seam zinc roof. Made to last for generations (with a 50 year material warranty),maintenance free, durable and 100 per cent recyclable, zinc is a natural choice for a Heritage Cathedral as its appearance will patina over time to register the prevailing conditions. Much consideration, review and debate has gone into the retrofit roof construction assembly, to produce a system that is both economical and effective at achieving the current ideals for envelope, thermal and acoustic performance. Existing 2x4 sleepers have been

replaced with 2x8’s providing the requisite depth of pocket for insulation and ventilation and the opportunity to level the roof plane for the application of the zinc alloy roofing system. Perhaps a crowning feature of the current project is the addition of the highly anticipated bellspire at the northeast corner of the Cathedral — (as originally envisioned) set atop the existing elevator core. This open glass and steel structure housing four electronically controlled and custom cast bronze bells will be the last significant architectural addition to the project. Intended to register as a clearly modern addition to the heri-

tage building, and to celebrate the final phase of the restoration, the bell-spire was designed by Proscenium — with stained glass panels designed by Sarah Hall, a highly regarded glass artist who was selected following a juried design competition. The title of Sarah’s design is “Welcoming Light” — recalling the “beacon on the hill” analogy used to describe the Cathedral’s iconic profile in Vancouver’s historic cityscape. Ron Clay, BA/BArch, MRAIC is associate and project architect at Proscenium Architecture and Interiors Inc.

Each construction project is unique. Your risk solutions should be too. CMW’s insurance solutions are built for you from the ground up by our experienced Risk Advisors. We are BC owned and operated, and know how to deliver what you want, and more importantly, what you need. Get the solution that’s right for you.

Talk to a CMW Risk Advisor today. Call 604 294 3301. cmwinsurance.com 700 – 1901 Rosser Avenue, Burnaby, BC V5C 6R6

January/February 2016

construction business

Roofing

Green Roofs for Stormwater Management By Karen Liu Seaforth Armoury, Vancouver, B.C.

How Green Roofs Mitigate Stormwater A green roof consists of several principle components: vegetation, growing medium, filter layer, drainage layer and root barrier. During a rainfall event, rain is intercepted by the plants before it reaches the growing medium, where much of it is infiltrated, absorbed and adsorbed. Excess water exits the filter layer into the drainage layer, flows along the roof membrane to the roof drains. The stored water is either used by the plants or returned to the atmosphere through evaporation. 16

construction business

Although a green roof cannot fully mimic natural catchment because of its limited soil profile and diversity of vegetation, nevertheless, it can minimize surface runoff and contribute positively to stormwater management. The water storage capacity of a green roof comes from various components in the assembly: Vegetation Plants provide runoff mitigation by taking up water from the growing medium through their roots and releasing back to the atmosphere from their leaves thus “recharging” the green roof system’s water storage capacity for the next rain event. While most plants take up and release water during daytime, succulent plants such as sedums can store water in their leaves, stems and roots and release it in the cooler time in the night, making them more heat and drought tolerant — characteristics that are particularly suited for survival on rooftops. Growing medium Typical green roof media are higher in mineral aggregates and lower in organic matters (<25 per cent) compared to regular garden soils to maintain soil structure, and therefore performance over the long term. Water is stored in the cavities of porous particles (e.g. lava, expanded clay), small capillary pores between them and the organic matter fraction. Water retention layer Absorptive materials such as synthetic fleece and hygroscopic mat store water in the space between fibres. They are

January/February 2016

highly effective in storing water (holding up to eight times their weight in water) compared to growing medium on a per-unit-weight basis. At the same time, they are permeable so they do not become waterlogged or promote root rot. Drainage Some geo-composites consist of a 3D drainage core bonded to a synthetic fleece that stores water and releases it to the growing medium. Some drainage panels are molded into “cups” to act as water reservoirs to provide both drainage and water retention functions. Open pore aggregates, such as expanded clay, can also provide both drainage and water storage but they can also add considerable weight on the roof.

Design Considerations Soil absorbs and stores water so it is intuitive to increase the growing medium depth in order to enhance the water retention capacity of a green roof. Note, however, that not all growing media are created equal. Depending on the composition (e.g. organic contents), the water retention capacity of typical growing media vary from 40 to 65 volume per cent, which can considerably affect the stormwater management potential of a green roof. Growing medium is heavy when wet so its depth is limited by the roof ’s structural capacity. Innovative materials such as synthetic fleeces and hygroscopic mats offer lightweight alternatives to growing media as an effective water stor-

Terry Guscott/Xeroflor Canada

reen roofs, growing vegetation on rooftops, offer multiple environmental, ecological and economic benefits to the urban areas. The vegetative layers increase the energy efficiency and extend the service life of the roofing system, thus lowering a building’s operating costs. The rooftop landscape not only beautifies our skyline but also cleans the air and provides a safe habitat for birds and insects in the cities. Green roofs are rapidly gaining popularity as a low impact development (LID) tool for storwmater management. Much of the rain is absorbed by the planting layers instead of going into our stormwater infrastructure. In older cities such as Montreal and Halifax with combined storm and sanitary sewers, keeping the stormwater onsite can reduce water pollution downstream during heavy rain events.

Roofing

Xeroflor Canada

age on a per-unit-weight basis. By replacing all or part of the growing medium in a green roof with these materials, one can achieve equal or better water storage capacity while keeping the weight low. The stormwater management potential of a green roof also depends on the rainfall pattern. The National Research Council Canada showed that a green roof with 150mm of growing medium in Ottawa retained 53 per cent of the annual rainfall while the British Colombia Institute of Technology showed that a similar green roof in Vancouver retained only 29 per cent. The 150-mm-deep green roof was more effective in reducing runoff during infrequent heavy rain events between dry periods in Ottawa than the long periods of continuous light rain in Vancouver. Finally, more is not necessarily better when it comes to growing medium and stormwater management. The British Colombia Institute of Technology showed that the annual water retention capacity of two green roofs with 75 mm and 150 mm of growing medium was 26-29 per cent, essentially the same within experimental error. The continuous rain over a long period in the winter saturated both roofs, making one with shallow medium performed just as well as the deeper one.

Summary There is no one-size-fits-all green roof solution. The green roof system must be designed and

Principal components of a green roof.

optimized for the local climate to achieve effective stormwater management function. Advances in green roof technology have provided designers with many options to increase water storage capacity of green roofs. These offer opportunities in greening lightweight structures that would otherwise not be possible with traditional growing-medium-based systems.

2016 Construction

LEADERSHIP

Dr. Karen Liu, PhD, is the product manager for Bonar Xeroflor. She has been conducting green roof research since 2000 when she was a research officer at the National Research Council (NRC) in Ottawa, and led the green roof research team at BCIT in Vancouver. For more info: info@xeroflorcanada.ca or karen. liu@xeroflor.com

May 6-7, 2016

Fairmont Chateau Whistler

Forum

Building Tomorrow’s Leaders The VRCA is thrilled to present the 2016 Construction Leadership Forum. Designed for middle managers, the conference will address current issues, trends, best practices and equip delegates with tools to become well-rounded industry leaders. This year’s program will include a variety of networking activities, engaging panel discussions on industry issues, and informative sessions on professional development, productivity, and safety. Register now at www.vrca.bc.ca/conference to get the Early Bird rate! Featuring Keynote Speaker David Chilton, former “Dragon” on CBC TV’s Dragons’ Den and bestselling author of The Wealthy Barber. Sponsorship opportunities available! For more information, please contact Jennifer Jones, Education & Events Project Manager, at events@vrca.bc.ca.

Presenting Sponsor:

January/February 2016

construction business

Infrastructure

Are B.C. Water Systems at Risk? Opportunities for B.C.’s construction industry. By John Weninger

eliable water, sewer and storm water systems are essential to public health, a clean environment and a strong economy. But British Columbia’s systems may be at risk — aging infrastructure, growth, strengthened regulations, seismic risk, and climate change are driving the need for significant upgrades and re-investment in the pipes, pumps and equipment that are used to treat, deliver and safely remove water for homes and businesses. At the same time, fiscal restraint and public complacency impede the ability of local governments and water utilities to secure the financial resources required to sustain water infrastructure assets. In 2015, the BC Water & Waste Association (BCWWA), together with Urban Systems, produced the research report, Are our Water Systems at Risk? to assess the financial capacity of B.C.’s local governments to maintain, renew and replace the existing water and wastewater infrastructure. The report points to four main concerns about the financial sustainability of the water and wastewater systems. 1. Water and sewer fees are not covering the full cost of services in many communities. To be financially sustainable, the revenues earned by a water or sewer system should cover the full cost of operating and maintaining the system, as well as the eventual replacement of the system as it comes to the end of its useful life. While some communities are financially well positioned to meet current and future service needs, water and sewer rates in the majority of B.C. municipalities do not generate sufficient revenues from fees to pay for the full cost of providing services. In order to reach full cost pricing in the worst cases, rates would need to nearly double to reach financial sustainability. 2. Communities are vulnerable. The majority of B.C. municipalities have not set aside sufficient reserve savings to provide a buffer against

construction business

unexpected changes in water or sewer system operating costs or revenues. This means that some communities are vulnerable to unanticipated events, like sudden equipment failure or the impact of severe storm or seismic events that damage water or wastewater systems, which could cause unbudgeted expenses, loss of revenues, or sudden rate increases. While emergency borrowing mechanisms exist for municipalities, they take time to implement, which means there could be reduced service levels or delays in re-instating services following an unexpected change. Smaller systems have greater financial gaps. Smaller communities (with a population less than 10,000) have greater financial sustainability gaps in their water and wastewater systems than larger communities. Water and wastewater systems are capital-intensive; smaller communities do not have the benefit of “economies of scale”, and so the costs of their systems are shared across a smaller base of users, which impacts their financial capacity. 3. Investment is required. As water and wastewater systems approach the end of their useful life, investment will be required to renew and replace the current infrastructure. Approximately $13 billion would be required in B.C. in order to address the shortfall in current reserve savings. To ensure an appropriate level of funding will be available when required, B.C. communities need to have pro-active long-range plans that address their infrastructure renewal and replacement needs. The estimated $13 billion investment does not include new infrastructure that may be needed to accommodate growing communities, or upgrades that communities may need to undertake to meet regulatory change, or upgrades to address resiliency for climate change or seismic events. 4. The Role for the Construction Industry. The scale and scope of the investment needed in the next decade(s) create significant opportuni-

January/February 2016

ties for the construction industry. The renewal of water and sewer infrastructure within an urban environment is an area of construction that is ripe for innovation and new approaches. Replacing pipes that lay beneath busy roads, and provide vital services that can only be interrupted for brief periods, creates significant challenges. Those construction firms that are able to pioneer new approaches and technologies that reduce the disruption to municipal services and reduce overall costs will prosper. Compounding the technical challenges, there are also financial issues to overcome. Municipal budgets are stretched and staff capacity is limited. As a result, there will be opportunities for construction firms that are adaptable to project delivery approaches that involve partnerships and longer term business arrangements. Municipalities will increasingly be seeking expanded service offerings and more “turn-key” solutions that leverage the management and business expertise of their business partners. In addition to the financial constraints of local governments, there are also staff capacity constraints. Local government managers and professionals are burdened with a widely diverse set of issues to manage. To have deep expertise in infrastructure renewal and the latest construction techniques will be challenging. Therefore, construction firms with expanded service offerings such as inspection, planning and program design will be well positioned. Developing relationships and partnerships with other firms that can help expand the service offering will also prove to be advantageous. It is possible to meet water infrastructure needs for this generation and the generations that follow. Municipalities can make sound choices today about priorities for existing tax dollars and setting user rates that cover the full cost of operating, maintaining and replacing systems. B.C. is fortunate to be home to a thriving construction industry comprised of skilled and talented construction professionals and tradespeople. Collaboration and forward thinking on behalf of the construction industry will be needed to ensure water and wastewater systems continue to protect public health and the environment and contribute to economic development in the province. John Weninger is a principal at Urban Systems and former chair of the BC Water & Waste Association (BCWWA) Infrastructure Management Technical Advisory Committee. As a consultant for municipalities, he regularly applies his deep experience in asset management and financial policy to help support thriving communities. The full report can be found at bcwwa.org

Infrastructure

Efficient, Modern Transportation Infrastructure Good Transit vs. An Efficient Transportation Network By Jack Davidson

t is not uncommon to hear about the technological revolution that is currently occurring and its impact on various elements of transportation — from driverless vehicles to real time traffic monitoring/control, technology is evolving. The important question is if transportation networks will continue to evolve to meet the growing and changing demands of it users. While it is easy to argue the importance of getting cars off the road to assist in the reduction of greenhouse gas emissions, let’s be realistic. Metro Vancouver and many other regions in British Columbia are preparing themselves for significant growth over the next few decades. With the increase in population, will come an increase in traffic and the greater need for the efficient movement of people, goods and services. While ideally, some of this growth can be absorbed through improved and increased usage of transit services, the demand for improved roads, bridges and other transportation infrastructure will undoubtedly continue to increase. Over the years, it seems that we have fallen into a bit of a conundrum in regard to the belief that as vehicle travel becomes more efficient, transit becomes less appealing. However, there should be a clear distinction between transit usage and infrastructure development. In many cases, the decision of whether to use transit to commute on a daily basis is an easy one for individuals. Depending on convenience, costs and time, the decision is made for us, while there is a very small percentage of people who

have the luxury of driving versus taking transit both being viable options. Personally, I commute on a daily basis from my home in the Fraser Valley to our association office in South Burnaby. I have been making this commute everyday for over 16 years. On average it takes me about an hour and fifteen minutes each way (i.e. 65 kilometres). If I attempted to take transit, it would likely take me anywhere from 2-3 hours and I would have to make up to six transfers, and mine is not an extreme example. Unfortunately, for many commuters who must travel across regions, transit is currently not a viable or realistic option. No matter the logistics of the commute, it often takes transit users double the amount of time to make a trip, and that’s extra time away from their families — a sacrifice people are not willing to make. For many years, TransLink has struggled to increase ridership and been unable to focus on its mandate, and some, including former CEO Doug Allen, having indicated that this is because it has been pre-occupied with attempting to deal with necessary road and bridge improvements. The Mayors’ Council unsuccessfully attempted to get the transit referendum approved in 2015 so funding would be in place to deal with improving transit and the transportation network. British Columbians agree that improvements need to be made — however by unfortunately combining the mutually exclusive concepts of improving transit and transportation infrastructure, the need for both became lost in translation, and British Columbians voted ‘no’ because

many believe TransLink already receives enough funding for transit initiatives. In order to move forward in a productive way, it is important that people recognize the clear distinction between an efficient, well-functioning transit system and necessary improvements to the province’s transportation network including roadways, highways and bridges. Efficient, modern, core transportation infrastructure is essential because it is the key foundation of a strong economy — nothing moves until roads are built. Strategic investment in core transportation infrastructure supports a growing economy by making our businesses more competitive. When companies are successful, they create jobs and prosperity. A strong economy allows government to deliver important services such as healthcare, education and social services. So while we continue to embrace new technologies and innovation, one thing will always remain the same — and that is the need for an efficient transportation network that supports commerce and trade. How this network is supported in the future — whether it be through road/bridge tolling, dynamic pricing or the status quo — will be part of a bigger systematic revolution. Jack Davidson is president of the BC Road Builders & Heavy Construction Association which represents more than 250 firms involved in grading, asphalt and concrete manufacturing, paving, utility construction, road and bridge building/maintenance, blasting, as well as related goods and services suppliers.

January/February 2016

construction business

Infrastructure

Contractor of the Year Awards The 13th annual Deputy Minister’s Contractor of the Year Awards were handed out by the B.C. Ministry of Transportation and Infrastruture during the B.C. Road Builders and Heavy Construction Association AGM on December 4, 2015. The Deputy Minister’s Contractor of the Year Awards recognize construction and maintenance companies demonstrating excellence in the categories of grading, paving, bridges and structures, safety innovation, and highway maintenance work throughout the province.

GRADING

PAVING

Cantex-Okanagan Construction Ltd. Highway 97, 74 Mile to 76 Mile Four Laning.

Selkirk Paving of Crescent Valley Highway 3 Bombi Junction to Nelway Junction resurfacing project

This $7.8 million contract involved widening 4.5 kilometres of Highway 97, as part of the $200 million investment into Phase 2 of the Cariboo Connector Upgrade Project

The $4.8 million contract included paving 26 kilometres of Highway 3 and five kilometres of side roads, as well as paving municipal roads in partnership with the villages of Fruitvale and Salmo.

ROAD AND BRIDGE MAINTENANCE

SAFETY INNOVATION

VSA Highway Maintenance Ltd. Service Area 14 — Nicola

BA Blacktop Ltd. of North Vancouver Quick Response Safety HUB.

For their continued focus on building relationships within the local communities including excellent communication with the public and key stakeholders.

It links their safety policies and procedures to smartphones via Quick Response (QR) codes.

BRIDGES AND STRUCTURES Coquitlam Ridge Constructors Road 40 — Apple Springs Bluff Bridge

The $386,000 contract involved constructing a new two-lane 17.5-metrelong bridge to replace the existing structure on Lillooet/Pioneer Road 40, which forms a crucial link between the communities of Lillooet and Gold Bridge. 20 construction business

January/February 2016

2016 BC CONSTRUCTION

VANCOUVER ISLAND/COAST MAINLAND/SOUTHWEST THOMPSON-OKANAGAN KOOTENAY CARIBOO NORTH COAST NECHAKO NORTHEAST

Industry insights from 900 construction employers and tradespeople.

INDUSTRY SURVEY

REALITY CHEQUE TRADES WAGES & SALARIES SPECIAL EDITION

PRESENTED BY:

www.bccassn.com

BC CONSTRUCTION INDUSTRY SURVEY

2016

INTRODUCTION

Do you know what your competitors are paying their skilled tradespeople? If you’ve been paying attention – and I know you have – you know that the competition for skilled workers in BC can be intense. Supply is often tight. Our data tells us that 94% of BC’s construction employers are planning to hire this year. // Manley McLachlan, President (BCCA) The new Buildforce report predicts a skilled trades shortage of approximately 15,000 workers over the next 8 years. Economics 101 says when there’s not enough supply prices go up. But do they? If you’re a construction employer putting a project or operational budget together, margins are small and salary increases might not be on the cards. With the changes in global oil prices Alberta’s workforce is shifting westward, which is good news for BC’s shortages. But don’t be complacent: we’re still facing too many retirements to keep our skilled labour pool at appropriate levels.

BCCA, CLR, PCA, and Construction Business Magazine teamed up on behalf of the construction sector. We surveyed our combined membership and subscriber base to get the facts on trades wages and salaries. An impressive 900 respondents – all of them BC construction employers or skilled workers – answered straightforward questions about compensation and work. The big picture results are published here, and a more comprehensive regional breakdown of salary data can be found at www.bccassn.com We hope you will find this information helpful to your skilled workforce planning. Sincerely, Manley McLachlan BCCA President

The BC Construction Association represents roughly 2,000 organizations active in the province’s industrial, commercial and institutional construction sectors. Working to foster an economic and political climate which will promote growth, competition and success for our industry, the BCCA is your provincial advocate and provider of strong support programs to support BC construction businesses of all sizes.

Construction Business Magazine provides an important vehicle for the exchange of knowledge and ideas in western Canada’s construction sector: information critical to the public and private sectors as BC gears up in this new economy.

Construction Labour Relations Association of BC was established in 1969 with the objective of bringing labour relations stability and security to contractors in BC’s unionized construction sector. Today, CLR continues to provide a unified voice that is essential to negotiating the most favourable agreements for its members and the industry.

Progressive Contractors Association of Canada represents and supports progressive unionized employers in Canada’s construction industry. PCA provides advocacy, labour-management advice, networking opportunities, and organizational services to its member community.

Of particular relevance to the skilled workforce issue is the Skilled Trades Employment Program (STEP). There are 12 STEP offices across BC ready to help construction employers source the skilled workers they need. Contact STEP today via the website: www.stepbc.ca

Whatever your company size, BCCA has a benefits package that will work for you. EBP is a not-for-profit plan governed by the BCCA Employee Benefit Trust, a volunteer body of industry leaders.

RESPONDENT OVERVIEW

RESPONDENT OVERVIEW SURVEY RESPONDENTS provided information from all seven development regions of British Columbia. Employers made up 55% of respondents, and tradespeople 45%. Location of Respondentsâ&#x20AC;&#x2122; Head Offices Union and Non-Union 23% of respondents worked in a unionized environment, while 77% were non-union.

10%

Top Trades Employed (in order)

Carpentry Electrical Plumbing Welding Heavy Equipment Operation Roofing Construction Craft Work Metal Fabrication Glazing Cabinet Making Sheet Metal Work Painting Mechanical

21%

15% 11%

Company Size by Employee

25%

Company Size by Annual Revenue 32%

33%

27%

26%

15%

14%

15% 11%

Less than 5

5 - 20

www.bccassn.com

21 - 50

51 - 100

More than 100

<$500k

$500k - 2M

$2M - 10M

>$10M

BC CONSTRUCTION INDUSTRY SURVEY

2016

ON SKILLED TRADESPEOPLE

SKILLED TRADESPEOPLE Skilled workers are the backbone of the industry, and tight supply is making it a workerâ&#x20AC;&#x2122;s market. With skills gap forecasts still hovering around 15,000 people, employers need to focus on retaining the talent they have. Surprisingly, survey results show that small employers are doing the best job keeping their workers despite offering lower wages and fewer benefits.

Most Respondents are

They work

Male (85%) Apprentices (63%) Journeypersons (26%) Happy with wages (85%)

Full Time (93%) Year-Round (77%) Open Shop (83%) Overtime (60%)

71% of female respondents were apprentices and 7% were journeypersons. Women are entering the construction workforce and willing to start as apprentices to learn a trade. This is an important source of supply for all employers.

Entry Level Worker

Apprentice

Journeyperson

Motivated and Career Focused

Working Hard and Moving Up

Maxing Out

88%

44%

30%

feel they are fairly compensated for their work

received a raise in the past year

28%

94% are working full time

97% are working full time

are in the process of getting their credentials

Most Likely To...

Switch employers

Most Likely To...

Switch trades

Most Likely To...

Switch regions for work

Employers can help retention by showing the wage potential with successive years of experience.

ON EMPLOYERS

EMPLOYERS Size isnâ&#x20AC;&#x2122;t everything and neither is money. Employees from the largest employers are the most likely to leave their job due to wages. Successful retention requires a personal strategy for engaging talent to stay for reasons other than pay. (In our survey, a small employer is defined as having less than 5 employees, medium companies hire 5-99 employees, and large companies have 100 or more.)

Most Respondents are

They hire

Medium Size (60%)

Apprentices (95%)

Open Shop (72%)

Journeypersons (92%)

$0.5 - 10M (26%)

And pay

Working in 1+ Region

More $ than last year (85%)

A high percentage of non-unionized employers in all size categories offer health benefits and training supports. This shows that BC employers are investing in their workers as they compete to attract and retain workers.

Small Companies

Medium Companies

Large Companies

Retention Leaders

Apprenticeship Champions

Big Spenders

15%

89% offer benefits

15%

99% offer full time work

less likely to hire apprentices & journeypersons than larger companies never require credentials

Most Likely To...

Keep their skilled workers

Most Likely To...

Support apprenticeship

69% offered raises last

year

80% are paying for

overtime

Most Likely To...

Lose employees due to pay

BC Employers are hiring workers from Alberta, with large companies leading the way at 75% and medium companies not far behind at 40%. www.bccassn.com

BC CONSTRUCTION INDUSTRY SURVEY

2016

TRADE WAGES

TRADE WAGES 2016 Employers of all sizes agree: unrealistic wage expectations can be an occupational hazard. Nearly 40% say some workers could use a â&#x20AC;&#x153;Reality Chequeâ&#x20AC;?. Here it is:

Asphalt Paving Boilermaker Bricklayer/Mason Cabinet Maker Carpenter Concrete Finisher Const. Craft Worker Diesel Engine Mech. Drywall Finisher Electrician Floor Covering Installer Glaziers HEO Horticulturist Millwright Instrumentation & Ctrl Tech Insulator Ironworker - Generalist Ironworker - Reinforcing Lather Log Builder Logistics & Distribution Metal Fabricator Painter & Decorator Parts & Warehouse Petro Equip Installer Plumber Refridge & AC Mech Residential Building Worker Roofer Sheet Metal Worker Steamfitter/Pipefitter Tilesetter Welder

< 1 Yr Exp

2-5 Yrs Exp

5-10 Yrs Exp

> 10 Yrs Exp

$20.83 $24.50 $18.83 $15.40 $17.16 $17.00 $18.79 $23.00 $20.50 $18.26 $23.50 $16.32 $21.24 $13.50 $22.90 $19.25 $16.50 $20.50 $18.50 $18.50 $17.00 $18.25 $19.50 $16.17 $19.75 $16.50 $16.98 $19.17 $20.50 $17.17 $16.25 $21.70 $18.25 $18.58

$23.50 $29.00 $28.83 $18.77 $21.94 $25.00 $20.50 $28.75 $25.50 $26.10 $27.65 $22.05 $25.72 $17.50 $26.50 $28.90 $26.17 $21.83 $28.00 $23.83 $17.50 $25.50 $24.50 $20.83 $23.64 $20.00 $24.89 $34.00 $22.00 $21.23 $24.50 $27.17 $26.25 $24.54

$31.50 $38.00 $33.50 $24.80 $27.73 $29.50 $27.75 $32.59 $30.50 $33.10 $38.17 $26.68 $28.89 $20.50 $31.83 $34.00 $28.50 $24.83 $36.17 $32.17 $21.83 $44.50 $29.50 $25.94 $27.00 $27.50 $31.57 $41.83 $24.00 $26.90 $32.38 $37.10 $30.00 $28.98

$32.83 $39.00 $31.00 $28.08 $31.69 $35.90 $32.71 $33.28 $34.50 $36.74 $35.65 $29.32 $32.81 $25.00 $35.83 $35.75 $26.50 $41.33 $38.50 $33.83 $23.17 $35.50 $31.96 $29.38 $31.00 $29.00 $34.50 $44.50 $26.50 $30.58 $35.40 $41.10 $35.50 $32.24

Wages in this table reflect information provided by survey respondents. It is meant to be used as a guideline only. Statistical relevance of each category will vary, dependant on number of survey respondents contributing.

INSIGHTS & ACTIONS

IF YOU REMEMBER ANYTHING... 1. RETENTION IS ABOUT MORE THAN JUST MONEY Benefits & Company Culture The amount you pay your tradespeople is one way employers stay competitive and retain top talent - but it’s about more than that. The highest paid respondents were most likely to change jobs. Small employers have the retention advantage.

2. EXPERIENCED PEOPLE ARE YOUR MOST VALUABLE ASSETS Make sure you retain your top talent Skilled workers with more than 10 years of experience are much more mobile than other workers. These experienced workers understand their value and are making sure they get their dues. 3. LOOKING TO NEW TALENT POOLS IS GOOD BUSINESS The women are gearing up and Albertans are coming home Women are apprenticing. Their training is supported and funded. They want to work. British Columbians are moving home from Alberta and they have the experience that BC employers need. The culture shift is underway.

CONTRIBUTORS

Manley McLachlan President, BCCA

Clyde Scollan President, CLRA-BC

Keri Miller Member Services, PCA

Krista Bax Executive Director, APGST

“Just because it seems obvious doesn’t mean you’re doing it. Take some time to digest this information. Success depends on it.”

“Review your wages against the averages, know where you stand, and then step forward.”

“Understanding what motivates this unique workforce is the key to a strong sector and a strong economy.”

“All data tells a story. Use it to your competitive advantage and to build the best team you can.”

www.bccassn.com

BC CONSTRUCTION INDUSTRY SURVEY

2016 JANUARY 2016

215,000

Number of employees in BC’s construction sector

$56,170

Average annual salary of a BC construction industry worker

13% increase from 2011

15,000

Number of construction jobs in BC that will be unﬁlled due to labour shortages by 2024

1% increase from 2014

2/3

Workers in BC’s skilled trades are over the age of 45

41% decrease from 2014

1/70

BC high school students goes directly into construction trades 15% increase from 2014

3.4%

5.8% (All Sectors) 3.4%

Unemployment in BC’s construction sector 45% lower than BC average

45%

of employers hired a worker that came directly from working in Alberta’s oil and gas sector

No change since 2014

92%

BC construction companies with less than 20 employees 1% decrease from 2014

New statistic

94%

help wanted

BC construction companies planning to hire in 2015 No change since 2014

Last 3 Years

$16.5B

$296B

Available capital cost of proposed construction projects in BC $26B increase from 2014

$81.7B

Value of current construction projects in BC Consistent with 2015

8.1%

Contribution by the construction industry to BC’s GDP $1B increase from 2014

For more insight, visit us at

www.bccassn.com 8

Bonding & Insurance

Project Insurance Risks Insurance requirements for government funded projects increase risks for contractors. By Steve McConnell

s a smaller guy, Gretzky played an exciting brand of hockey. Creative and fast, he took the game to a new level. The only reason he could play this way, in fact, the main reason he played his game so successfully was because the referees didn’t allow the big guys to use their size to force him out. Without consistently enforced rules, the game would be a slow, low quality and boring event. More importantly, without clear rules and fair referees, most of us either couldn’t, or wouldn’t, play the game at all, talented or not. No doubt there was a time in construction procurement when there were few rules and weak enforcement. (I imagine it was an era when many small and mid-sized, smart, hardworking contractors were crushed and forced off the ice by the big guys). This gave rise to construction associations like the CCA, the VRCA and ICBA, government / construction industry co-operation as well as bonding and standard setting bodies such as CCDC. As a result, the industry is now reasonably competitive, efficient and innovative. When private money is being invested into a construction project, the project owners and lenders have the freedom to contract with anyone they prefer and in whatever contract form they choose. When it comes to government funded projects however, it is critical that procurement be open, fair, objective and transparent. Every qualified contractor has a right to compete for this work. Without rules, standards and fair play, there would be very few contractors and public construction would be expensive. If we want a healthy industry — one that is

competitive, efficient, innovative and self renewing, there is really no other option. In recent years standards and transparency appear to be fading in the name of collaboration and innovation. As an example, under the CCDC 2 contract, insurance requirements are clearly spelled out. They reference CCDC 41, which in turn references IBC Form 2100, 4042, 4047 and 2320. These standards came about through many years of national collaboration between all stakeholders including contractors, insurers and owners. The result is a fair approach where the rules of the game are clear and each

...standards and transparency appear to be fading in the name of collaboration and innovation. stakeholder understands their insurance coverage. Everybody wins. Often, this entire insurance section is now removed from the standard CCDC contract. Revised insurance requirements are reinserted by way of the supplementary general conditions. Occasionally, the new insurance requirements omit key coverage items. Insurance companies, if not bound by the CCDC standard requirement, might issue a “lightweight” wording that reduces coverage. Often this is cheaper for the party assigned in the contract to arrange the project insurance. Riskier

sub-trades are sometimes identified and large deductibles can be imposed on them to reduce the insurance company risk or the insurance cost. This approach can effectively remove the project insurance protection for the sub-trade completely. When it comes to insurance, the devil is in details. Sometimes, the actual policy wording is not even available for the general contractor and sub-trades to review (a contractual right under the old CCDC 41 standard). Depending on the project, departing from the CCDC standard insurance requirements can be enormously expensive. If you want to delve into this, do some reading on resultant damage clauses in project insurance policies. Sadly, most who are involved, from the inexperienced insurance broker to the project owner to the sub-trade, may not know that their coverage has been gutted until they try to claim on the policy. Government owners often believe that by changing the standards and customizing the approach, they are transferring risk to those who are best able to address this risk. What happens more often is that the risk is forced onto either the weakest or the least sophisticated contractor in the construction chain. One of the leading construction lawyers has said that no contractor is forced to sign these onerous contracts. “If you don’t want to take on the risk, then don’t sign the contract.” As most of us know, this approach is not only callous, it is also unrealistic. It’s not easy to walk away from work over an insurance clause or contract language issue when the company has employees who need to work and overhead costs that must be paid. As a construction broker (basically an outsourced risk manager), my role is to protect my clients from weak contract language and inadequate insurance and bonding protection wherever possible. The current government procurement environment makes this very challenging. Industry procurement standards have been created with much work and collaboration among all stakeholders. When public owners vary from the agreed upon standards, risk increases. Competition and innovation declines. Everybody loses. Regardless of political philosophy, governments at all levels must re-embrace the principles of objectivity, openness, transparency and accountability. We need government procurement models that promote competition. Otherwise, we are destined for an industry that is big, slow and expensive. And if there is a Gretzky among us, do we really want him sitting on the bench taping sticks and folding towels? Steve McConnell is client executive, vice president at CMW Insurance Services Ltd.

January/February 2016

construction business

Bonding & Insurance

Bonding Benefits What is bonding and why do contractors need it. By Darryl Wind

common question asked by clients is what is bonding and why do they need it, when they have recently had an opportunity to bid on a new project. One of the requirements may be to provide a Performance Bond and/or Labour and Materials Bond. There are many different types of bonds available and they can broken up into two broad categories: commercial bonds and contract bonds. Commercial bonds refer to obligations typically required by law guaranteeing adherence with applicable regulations, statutes and building codes. Examples are licence/permit, court, judicial and miscellaneous bonds. Contract bonds provide financial and performance assurance that construction projects will be completed as per the agreed upon bid and contract requirements. For the purposes of this article we will be referring to contract bonds and not commercial bonds. This is also not to be confused with fidelity bonds, which provide insurance coverage for employee dishonesty and theft. A common misconception is that a bond is like insurance. In actual fact it is not but rather provides a financial guarantee to a third party should the contractor fail to meet its contractual obligations. The difference is that the surety company

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will recover from the contractor any amount they may be, in performance of the contract, required to pay on the contractor’s behalf; as they are only providing a financial guarantee of performance. What a Surety Bond provides is a promise to pay one party (project owner), a certain amount if a second party, (the contractor) fails to meet some obligation, such as fulfilling the terms of a contract. The Surety bond protects the owner of

A common misconception is that a bond is like insurance. the project against losses resulting from the contractor’s failure to meet the obligation. As part of the prequalification process to establish a bond facility the surety company performs a detailed analysis of a contractor’s financial strength and ability to complete projects at the proposed bid amounts. Many factors go into this analysis including evaluating the contractor’s experience, current workload, financial strength and liquidity. The term “we are fully insured and bonded” indicates to prospective clients that this company is established, stable and dependable.

January/February 2016

The reason that a contractor might need bonding goes further than just meeting the requirements of a potential project contract. Once bonded, a company will be able to bid on projects that previously they could not. They will also have an experienced ally in their insurance broker to work with them to help establish the amount of work they can take on given their financial abilities. A contractor will also have the peace of mind in knowing that a project they provide a bond for will have proper financing in place. As the surety company will often require confirmation that the project owner has the required financing in place to finance the project. With all of these benefits, the question really should be: “why aren’t more contractors bonded”? One reason is that it requires a contractor to invest in their company. If the company does not have sufficient liquid assets / working capital in their company they will not qualify for a bond facility. Establishing a bond facility is a great next step for a growing company and can help to open up new opportunities for larger and more secure jobs. With all of this said it begs the question: “is it time for your company to consider bonding”? Darryl Wind, CIP, CRM, is account executive with Westland Insurance Group Ltd.

Bonding & Insurance

The Four Pillars of Bonding By Fred Moroz

sing an analogy that all contractors understand, a bonding facility is held up by four key pillars. All are important, and the strength of one relies on the strength of the others. If one or more of the pillars are weakened, it adds stress to the other pillars. The pillars are not the things that a company brings to the table. All sureties base their primary support on a company’s proven track record of successfully completed contracts, management of large work programs and strong financial statements. But those are factual things about the company. The four pillars are things that the bonding company and bond broker provide to you. They are things that you can negotiate to benefit you and your company. But like pillars holding up a building, if you take from one pillar, it affects the strength of the other pillars. The first pillar is Bond Limits. This is the size of the contracts and total work program that your bonding company is willing to support. Some contractors do not need large bond limits, and some contractors are always pushing for higher bond limits. But for all contractors, it is the reason that you have a bonding facility. You need them to provide you with the bonds for the size of contracts that you need and want to perform. The second pillar is Indemnities and Guarantees. This is the security that the bonding company holds that backs the bonds that they issue. With an un-bonded contract, only the signing company can be sued under contract law for breach of contract. If your surety pays out on a bond claim for non-performance on one of your

bonded contracts, they have legal recourse to go after any and all indemnitors that are on your Indemnity Agreement. This includes personal assets as well as corporate. The indemnities that you provide can be negotiable, but they affect the other pillars. The third pillar is the various Rates and Costs charged for your bonds and your bond facility. Your base rate is commonly called your “50/50 rate”. That is the cost as a percentage of the total

Bonds are legal documents and you can be deemed noncompliant...if they are not executed correctly. contract amount, for a 50 per cent performance bond and a 50 per cent labour and material payment bond, which are the most commonly asked for bonds. But there are also additional charges for a 2nd year of warranty, long contract durations, design-build contracts, etc. Low rates are better than higher rates. But what is more important than your absolute rate is your relative rate. Regardless of what your rate is, the key is having a rate the same as, or lower than the contractors that you are competing with. The fourth pillar is Expertise, Advice, Service and Execution. These are the less tangible things that are sometimes overlooked. But they shouldn’t be. An experienced, profes-

sional bond broker that pairs you with a supportive surety can give you more benefits and advantages than the other pillars. Bonds are legal documents and you can be deemed noncompliant or put at higher risk if they are not executed correctly. Things like: reviewing contract documents and tender specs and giving advice; mitigating your risk on bond claims and liens; meeting last minute bond requests; dealing with difficult or unusual projects and thinking outside the box to solve a problem. Plus, an established bond broker works with many contractors and can provide you with a wealth of construction market insight. These are the four pillars holding up your bond facility. Each one is important. You want to maximize the benefits from each pillar for your company. But maximizing the benefits for your company from each pillar does not mean they are strong pillars. If you ask for a benefit for your company (from one of the pillars), that is a concession from the bonding company, and that weakens the pillar. As a result, they are less likely to concede on another pillar. If you negotiate the removal of indemnities from your indemnity agreement (second pillar), then the surety has less to rely on in a loss. Since they are in a riskier position they will provide a lower bond limit (first pillar). If you negotiate a very low rate, the surety will tighten bond limits and indemnities to put their risk-reward equation back in balance. If you are relying on your surety and broker to support and advise you on difficult projects, this also alters the risk-reward balance and it will affect the other three pillars. If you weaken one pillar, the surety will need more strength from the other pillars. By all means, get the most out of your bonding facility. But know the key components, the four pillars. Know that gaining benefits from one pillar will stress the other pillars. You might be surprised that some of the larger contractors do not have the lowest rates or least indemnities. Some very large contractors require their surety to stretch to very high bond support levels resulting in no leverage to negotiate lower rates or less indemnities. Conversely, some well established smaller companies with modest bond support needs can have low rates or very limited indemnities. Your specialized bond broker can help you get the right balance for your company. Fred Moroz is vice president of construction bonding, with BFL Canada Insurance Services.

January/February 2016

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Legal File

Honest Contractual Performance Good faith — has the law really changed? By Bill Veenstra

n November 2014, the Supreme Court of Canada in Bhasin v Hrynew gave potentially far-reaching new guidance in the area of good faith in contract law. Legal observers have been carefully watching since to see how much Bhasin will actually change the law. To this point, it appears that Canadian courts are applying the judgment cautiously. However, the specific new duty recognized in Bhasin — the duty of honest contractual performance — is one that parties to construction and all other contracts must take into account. In Bhasin, Justice Cromwell described the existing state of the law of good faith in Canada’s common law provinces as “piecemeal, unsettled and unclear”, out of step with the law in Quebec and the United States, and also out of step with the normal commercial expectations of most contracting parties — who reasonably expect a basic level of honesty and good faith in contractual dealings. He noted that there are specific types of situations in which prior cases had developed standalone duties of good faith performance: where the parties must cooperate in order to achieve the objects of the contract, where one party exercises a discretionary power under a contract, and where one party seeks to evade contractual duties (including by taking steps to prevent performance of the contract). As will be seen below, recognition of these three categories has brought them to the forefront of good faith in contract law. All three of them reflect situations that arise from time to time in construction contracts. While Justice Cromwell concluded that the court should not recognize a general duty of

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good faith, he did conclude that there is a “general organizing principle” of good faith that underlies many facets of contract law. An organizing principle is not a duty or rule to be applied in specific cases, rather it is a tool to assist courts in future cases in considering possible incremental changes to the law. Such incremental changes in law would also have to give weight to the importance of certainty in commercial affairs and of allowing parties to order their affairs by entering into contracts, not to mention the reality that in commerce, a party may sometimes cause loss to another — even intentionally — in the legitimate pursuit of economic self-interest. Applying this general organizing principle, Justice Cromwell recognized a new duty of honesty in contractual performance, explaining that “this means simply that parties must not lie or otherwise knowingly mislead each other about matters directly linked to the performance of the contract. This does not impose a duty of loyalty or of disclosure or require a party to forego advantages flowing from the contract, or to subordinate its interests to those of the other party; it is a simply requirement not to lie or mislead the other party about one’s contractual performance.” To date, Canadian courts have been restrained in their application of these new principles. In two cases involving governments who were aware of but failed to disclose potential claims by aboriginal groups, the courts have declined to extend the duty not to lie to a situation where a party is aware of a material fact but fails to disclose it.

January/February 2016

Several cases have picked up on the three situations acknowledged in Bhasin as giving rise to previously-recognized duties of good faith. Park Avenue Flooring Inc v EllisDon Construction Services Inc was a dispute between a construction manager and a flooring subcontractor. The relationship became very strained, with the construction manager withholding recommendation of the subcontractor’s invoices for payment, and allegations that the subcontractor’s relationship with its employees was interfered with. Justice McCarthy concluded that the defendant’s acts had prevented the plaintiff from performing the contract and awarded damages on that basis. Greater Vancouver Sewerage District v Wastech Services arose from an arbitration award of damages arising from the District’s exercise of a contractual discretion to reduce Wastech’s allocation of waste. Wastech had sought to rely on the principles relating to bad faith in the exercise of a discretionary contractual power. In her reasons granting leave to appeal the award, Justice Fitzpatrick confirmed the cautious approach taken by the courts to issues of good faith since Bhasin, reiterating the following caution from an Ontario judgment: “Bhasin is no authority for unbridled creativity in the creation from whole cloth of obligations in a contractual context which the parties have not provided for or have addressed in a fashion which one party regrets in hindsight. Good faith and honesty are the boundaries of the field on which the contractual relationship is negotiated and performed.” On a careful reading, it is clear that Bhasin was not intended to radically transform the law of contract. Rather, it was intended to provide guidance in cases where further development of the law was appropriate. Courts have been cautious in applying Bhasin, and have not actively developed new generally-applicable duties of good faith despite Bhasin recognizing their ability to do so. Parties to a contract continue to be able in most cases to rely on the express terms of the contract they bargained for. At the same time, parties to contracts must remain cautious to ensure they are honest in communications they have with other contracting parties, and observe good faith in situations requiring cooperation to achieve contractual objects, the exercise of a discretionary power, and where their actions may prevent other parties from performing the contract. Bill Veenstra practices in commercial and construction litigation at Jenkins Marzban Logan LLP.

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Legal File

Interface Agreements

Setting the Foundation for Subcontractor Relationships By Jennifer Chan, Carrie Fleming and Anne Stewart

hereas traditional procurement commonly involves separate agreements between an owner and its design-builder and service provider, a public-private partnership (P3) can offer a more integrated approach. A P3 project agreement between the procuring government authority and a project company often includes not only the design and construction of an infrastructure asset, but also its long-term operation and maintenance (O&M). By requiring a project company to take a holistic approach when pricing its solution, P3s incentivize the designbuilder and service provider to work collaboratively and create practical solutions to ensure that the overall project costs are competitive, during both the construction and operational phases of the project. The integration of design, construction and O&M considerations can introduce complexity. In a P3 project, a project companyâ&#x20AC;&#x2122;s obligations under the project agreement will generally be allocated between the design-builder and the service provider. As part of this process, clarifying the allocation of key risks and responsibilities as between the design-builder and service provider will be important. An interface agreement establishes the foundation for this relationship by creating a direct contractual nexus between the design-builder and the service provider. However, the design-builder and the service provider will each bring different expertise and expectations to the negotiating table. Understanding the commercial expectations of each party may assist these negotiations. Although each interface agreement must be tailored to suit the unique requirements

36 construction business

of each project, several issues are commonly discussed: Design Collaboration: Changes in design and construction can affect the long-term costs of a projectâ&#x20AC;&#x2122;s O&M. For example, a change to roofing design may reduce construction costs, but increase O&M costs over the projectâ&#x20AC;&#x2122;s lifespan (e.g. heating, roof replacement). The service provider will typically want to be involved in key aspects of the design process so that it can manage these potential future costs. In contrast, the design-builder will typically wish to maintain design flexibility

The integration of design, construction and O&M considerations introduce complexity. and clearly articulate the level of service provider involvement in the design process. Site Access and Control: The service provider may require site access prior to construction completion. In some cases, the service provider may also play a role in the commissioning of infrastructure components or other preconditions to substantial completion. When both (or multiple) subcontractors are working on-site, considerations arise as to which subcontractor has primary control over the site and whether site access by other subcontractors may interfere with construction activities. Generally, the service provider will seek ease of access and limited site responsibilities during any period of overlap between the construction and operations.

January/February 2016

During the construction period, the designbuilder will generally maintain primary control over the site and will therefore require that service provider personnel comply with its project safety plan and directions. Both parties will likely seek clarity regarding the risk allocation related to issues such as property damage, hazardous substances and personal injury. Schedule Changes: Changes to the construction schedule may introduce additional costs for the service provider. Mobilization activities (e.g. hiring personnel, purchasing equipment, site orientation and move-in) are often time-cost sensitive. For example, if a service commencement date is delayed, the service provider may be liable for paying employees that do not yet have a facility to maintain. Alternatively, if construction is accelerated, the service provider may incur greater costs in accelerating the acquisition of materials and hiring personnel. A service provider may therefore want the interface agreement to address notice requirements related to schedule changes and, potentially, provide for compensation where such changes increase costs. The design-builder will typically seek to ensure the service provider mitigates those costs and that the interface agreement establishes timeframes during which no compensation would be payable. Operating Period Deductions: Operating period payments may be subject to deductions if performance does not meet the project agreement requirements. Often, these deductions are passed down by a project company to the service provider. In some cases, deductions may be caused by defects or other failures of the design-builder. The service provider may therefore require that the interface agreement permits recovery of these amounts from the design-builder. The design-builder may seek to introduce notice requirements in relation to defects and deductions, manageable warranty periods and an opportunity to rectify any defects itself. Liability Caps: The design-builder and service provider may use the interface agreement to establish limitations on the liabilities owed to the other subcontractor. These liability caps may be, but need not be, linked to the liability cap as between the subcontractors and the project company under the applicable subcontracts. Successful P3 projects are built upon the collaboration of the project team members. A thorough, fair interface agreement strengthens the foundation for these relationships. Jennifer Chan is an associate, and Carrie Fleming and Anne Stewart are partners with Blake, Cassels & Graydon LLP in Vancouver.

Architect Corner

A Parametric Approach to Architecture By Peter Osborne

The resulting massing model generated from Grasshopper’s parametric software. Parameters such as building height and floor can be manipulated in Grasshopper automatically updating the massing model in Rhino.

Image courtesy GEC Architecture

he story of Frank Lloyd Wright designing Fallingwater is said to have gone something like this: “With a design deadline approaching and eager apprentices inquiring, Wright apparently does not work on the project. He waits until 2 hours before E.J.’s arrival at Taliesin to sit at the drafting table. With his stunned entourage watching, Wright calmly but swiftly drafts the complete design for the house in plans and sections on blank sheet in one sitting, barely finishing in time for Kaufmann’s arrival. Wright designs a masterpiece of twentieth century architecture in a bravura performance of drafting.”1 This is the type of story that permeates the architectural profession. It reflects the profession’s struggle with the promotion of the individual over the collective. It echoes the way we teach, award and inevitably practice architecture. Whether the story is true or not does not matter. It is the parable that architecture is produced by an individual that shaped the profession during the last century. Current themes in architecture however have shifted the profession towards collaborative and integrated design processes. Evolving from a place of necessity as buildings have become increasingly complex with new technological, environmental and legal requirements. There is simply too much information for one person to process. The historic ideal of the individual over the collective no longer applies to modern construction. Complex buildings require innovative designs and design processes. Traditional modes of representation no longer apply to new forms of collaborative thinking. Architects are trained at building digital models of our designs. Software,

like Trimble’s SketchUp, has allowed architects to construct virtual representations of buildings. Every aspect of the design can be explicitly modeled and detailed. During the design process options can be explored, tested and modeled again. A parametric approach to design is different from this kind of conventional modeling. Parametric modeling refers to the use of parameters or variables that can be edited to manipulate an end result. Aspects of the architecture (massing, skin, structure) can be linked to establish relationships between elements. This

Parametric modeling refers to the use of parameters or variables that can be edited to manipulate an end result. involves using programs such as McNeel’s Grasshopper, which utilizes algorithms to perform actions within a Rhinoceros 3D environment. Grasshopper’s strength is that the programming of the algorithms is through a visual interface and not traditional lines of coding. This facilitates the rapid prototyping of designs that can generate data on various elements of the building. This eliminates the cycle of re-modeling, and provides timely accurate information vital to collaborative design approaches. Form-finding is one use for parametric modeling but it can also be used to optimize certain design aspects against a set of constraints or owner

criteria. Design constraints can be structural limitations, zoning regulations or pro-forma requirements. These constraints become a set of rules to which the design must conform. GEC Architecture uses these tools as part of our design process. For example, in a mixeduse development we can describe buildings as a series of extruded rectangular forms with a specific net-to-gross efficiency that generates a unit mix. As we manipulate the floor plate size or tower heights a new unit mix is instantaneously generated. Further constraints can be placed on the model such as maximum tower heights or overall site density. Now, as we shift density across the site by increasing one tower’s height other towers adjust never allowing the design to exceed the prescribed rules. By comparison, conventional modeling would require multiple changes to the model and additional calculations to ensure that adjustments made during a collaborative working session still conform to the site’s zoning. A parametric approach also allows for data to be pulled easily from the model. Data points can be set to provide floor-area ratios, wall area, slab area, etc. This data can be directly linked to our client’s pro forma or contractor’s estimates so that impacts to increasing a floor plate or adjusting a towers perimeter can be modelled and communicated quickly. A major facilitator of our collaborative design process is our enhanced studio conference rooms. These rooms have been purposely designed to facilitate interaction and information sharing. Our enhanced studio conference rooms play a critical role in the interaction of our team as it brings our clients, contracting partners and designers together in one space. Smartboards are the key feature as they provide the medium from which we display and interact with our parametric models. They enable coordination and collaboration to take place in real time. Many architects might feel a tingle of nostalgia for Wright’s story; however, there are many factors that are changing the focus of our profession away from the individual and towards the collective. The focus on the individual is outdated, and the modes of representation and design processes associated with it are as well. We must seek out design processes that enhance collaboration and provide value added information to our partners. Peter Osborne, Architect AAA AIBC SAA MRAIC LEED AP, is a partner at GEC Architecture, and the current president of the Alberta Association of Architects. 1 http://www.fallingwater.org

January/February 2016

construction business

Industry News

B.C.’s largest bridge will replace George Massey Tunnel A $3.5 billion bridge will replace the George Massey Tunnel in B.C. The new 10-lane bridge will be built over the Fraser River at Highway 99 over the tunnel, making it the largest bridge in province. “The new bridge to replace the Massey Tunnel will improve highway safety, reduce greenhouse gas emissions from unnecessary idling, and save rush-hour commuters up to 30 minutes a day,” said B.C. Infrastructure Minister Todd Stone. The current tunnel is nearing its end of life, and no longer meets modern standards for seismic safety. Many of its major components have about 10 years of useful life remaining before they need to be replaced, including the lighting, ventilation and pumping systems. The bridge, which will be paid for through user tolls, will offer important safety benefits that include: a design that meets modern seismic standards; additional lanes that make merging safer for all vehicles and will reduce an estimated 35% of collisions; and wider lanes and shoulders that will improve safety and emergency response times. The bridge will be approximately three kilometres long, with four general travel lanes and one transit/HOV lane in each direction. Once constructed, it will cut some commute times in half and also improve travel time reliability for the 10,000 transit passengers and 80,000 vehicles that use the tunnel each day. Other project components include new interchanges at Highway 17A, Steveston Highway and Westminster Highway and widening approximately 24 kilometres of Highway 99 to include one dedicated transit/HOV lane in each direction from Highway 91 in Delta to Bridgeport Road in Richmond, tying into existing infrastructure. Following completion of Phase 3 consultation, the ministry will finalize the project scope and cost estimate, and submit the project application for environmental review. Final decisions made by government will take into consideration the feedback received, along with remaining technical studies and the environmental review. Construction will begin in 2017. New Kinetic President Kinetic Construction has appointed a new president, Tom Plumb who succeeds Bill Gyles, Kinetic’s founder and longtime president and CEO. Kinetic Construction, a construction manager and general contractor with offices in Victoria, Vancouver and Courtenay, is continuing its succession plan with this appointment. Plumb joined Kinetic in 1999 and previously served as Courtenay branch manager for 10 years. He is a graduate of BCIT’s Building Technology program, a Gold Seal Project Manager and has a Red Seal in carpentry. He has spent six months training and learning from Bill Gyles in order to prepare for his new role. Gyles will continue working at Kinetic to help with this important transition, training and mentoring Plumb and other senior employees. 38 construction business

January/February 2016

Engineering consultants merge Three specialized bridge, tunnel and marine engineering consultants have combined to drive the growth of COWI in North America. Effective January 1, 2016, COWI-owned companies Buckland & Taylor and Jenny Engineering Corporation join with sister company COWI Marine North America to become COWI North America. The newly merged company will have 350 employees across 13 US and Canadian offices, providing the highest level of technical excellence in bridge, tunnel and marine engineering. It is a calculated move to take advantage of the infrastructure demands of the next 10 years, as well as the COWI name in the international market. COWI’s presence in North America dates back to 1988 with the purchase of marine engineering firm Ben. C. Gerwick. COWI later acquired Buckland & Taylor in 1998, Ocean and Coastal Consultants in 2007 and Jenny Engineering Corporation in 2012. Steven Hunt will remain president & CEO of COWI North America, while Darryl Matson, formerly the president & CEO of Buckland & Taylor, will become senior vice president - bridges, and Winston Stewart, formerly the managing director of COWI Marine North America, will become senior vice president — Marine. B.C. Construction Workforce Set to Grow Major new projects from LNG plants and pipelines to utilities and transportation work will bolster British Columbia’s construction workforce to new record highs in 2018 and 2019, according to the latest labour market forecast released by BuildForce Canada. BuildForce Canada’s 2016‒2025 Construction and Maintenance Looking Forward forecast shows B.C. construction beginning the year in a growth phase with new infrastructure projects and energy development leading investment. Specialized trades will be in demand from 2016 to 2019. As projects wind down, labour market conditions will ease in 2020 and 2021 leaving a gain in new jobs by the end of the scenario period in 2025. Residential construction is expected to remain largely unchanged between now and 2018, before new housing activity declines as population growth slows, while demand for home renovation work rises. BuildForce Canada’s forecast also shows: • Home renovation and maintenance work continue to grow, adding 2,000 jobs across the scenario. • Non-residential construction will be up by approximately 12,600 jobs at the end of the scenario in 2025. • There is a need to replace more than 39,500 baby boomers retiring from construction in the next 10 years. “More than 22 per cent of the province’s construction workforce is retiring this decade,” added Sparks. “It’s a huge loss of skills and experience that requires industry planning well in advance.” In Alberta, the forecast shows that declining oil prices are driving employment lower across all construction sectors, with the projected loss of 31,000 jobs from the peak in 2014 to 2019. Funding for UBC Sciences Complex The B.C. provincial government has announced funding of $19.95 million for UBC to upgrade and expand the aging Biolgoical Sciences Complex used by life sciences students. Students taking life sciences at UBC learn about the fundamentals of human health, microbiology, disease and infection, as well as plants and crops, biotechnology and animal health. The $19.95 million in funding from the provincial government was announced by the premier during her keynote address at the #BCTECH Summit. It will enable UBC to complete an $80-million makeover of the Biological Sciences Complex, a facility that provides 2,000 students and professors with classroom and laboratory space. The project consists of renovating the 40-year-old north wing of the building and replacing the 68-year-old centre wing. It will eliminate approximately $51 million in deferred maintenance costs and significantly mitigate seismic risk through structural upgrades. It expands on the first phase of the project, completed in 2011, which saw the redevelopment of the west and south wings.

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