Construction Business - July/August 2011

July/August 2011 Vol. 8 No. 6

PM 40063056

Bob Fairbank, Eagle West Cranes | Brick Yard Station Open Shop | Engineering | skills Training | Steel

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Inside

July/August 2011 | Volume 8 No 6

06 Connections

PUBLISHER

Bob Fairbank As the chief operating officer at Eagle West Cranes, Bob Fairbank has help lead the company through significant growth over the last five years.

MANAGING Editor Contributing writers

10 Feature Project Brick Yard Station The Brick Yard Station development will be a heritage rail-theme shopping centre in Cloverdale.

Industry Focus 14 Open Shop Public investment builds private benefits Increasing Productivity Open Shop Goes National

B.C./ALBERTA SALES

Dan Gnocato dang@mediaedge.ca Cheryl Mah Tyler Galbraith Philip Hochstein Jason Keenan Gilbert Larocque Kent LaRose Curtis Marble Ainsley Muller Owen Pawson Jean Sorensen Malcolm Smith Norm Streu Stephen Torrence Jim Toy Douglas Watt Dan Gnocato Tel: 604.739.2115 ext. 223

22 Steel Steel Pricing: Relative Stability First of its Kind Alberta 2011 Steel Design Awards of Excellence

PUBLISHED BY

26 Engineering

PRESIDENT Kevin Brown

Aging Glazing Systems Adaptive Management Approach Improving Quality Management

vancouver office 402-1788 W. Broadway Vancouver, BC V6J 1Y1 Tel: 604.739.2115 Fax: 604.739.2117

29 Skills Training Raising the Bar Criminal Record Barriers Gold Seal Project

44 VRCA AWARDS OF EXCELLENCE SILVER WINNERS

Toronto office 1000-5255 Yonge St. Toronto, ON M2N 6P4 Tel: 416.512.8186 Fax: 416.512.8344 Copyright 2011 Canada Post Canadian publications mail sales publication agreement no. 40063056 — ISSN 1710-0380

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39 The Legal File

Staying in the Game Exclusion Clauses Planning for Success in Litigation

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Cover Photo

Cliffwalk at North Vancouver’s Capilano Suspension Bridge is a groundbreaking steel structure. About 40 tons of steel was used to construct the signature walkway.

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.

February 8 & 9, 2012

March 20 & 21, 2012

November 8 & 9, 2011

Editor’s Note

Wind Power

T

he first time I saw a wind farm was on a road trip to Alberta. Standing tall against the blue sky, the rows of white wind turbines with their blades spinning was an incredible sight. I’ve also seen a wind turbine up close at Grouse Mountain’s Eye of the Wind, which gave me a better appreciation of the power of wind.

Over the last decade, the wind energy sector has been rapidly growing worldwide and is the fastest growing renewable energy source in Canada.

One company capitalizing on this growth is Eagle West Cranes. We talk to Bob Fairbank, chief operating officer, about the company’s significant growth in the last five years due in part to wind energy projects.

For our feature project, we highlight Anthem’s Brick Yard Station development. The 68,000

square foot shopping centre will reflect Cloverdale’s rail heritage and bring diverse retail to the fast growing community.

Gracing our cover is the spectacular Cliffwalk at Capilano Suspension Bridge. The unique steel structure boasts a series of narrow walkways, bridges and viewing platforms. A signature u-shaped bridge cantilevered over the river canyon with glass-bottomed decks is the highlight of the experience.

Also in our steel focus, read about steel prices and the winners of the Alberta CISC Steel Awards.

Our annual open shop issue examines the importance of increasing productivity as well as continued capital infrastructure investments. The open shop is also expanding its efforts and presence on the national stage through Merit Canada, which opened an office in Ottawa this year.

In our engineering section, we take a look at South Fraser Perimeter Road, aging glazing systems and APEGBC’s Organizational Quality Management program.

For our skills training coverage, we have articles on SAIT Polytechnic’s new Trades and Technology Complex being designated as a Gold Seal Project ; the Professional Builders’ Institute which will implement proposed new qualifications for the licensing of residential builders in B.C.; and barriers created by criminal records.

Cheryl Mah Managing Editor

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July/August 2011

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Special Advertising Feature

Stepping up to safety

By Don Schouten, manager of construction, Industry and Labour Services, WorkSafeBC

H

aving spent over 25 years in the construction industry, I know secure at the top and the bottom so it won’t slip. All workers need to be that ladders are one of the most commonly used pieces of equip- trained to use ladders properly.

Also, remember that stepladders may not seem dangerous but seriment on a work site. I also know they can be one of the most ous injuries and even deaths may occur from falling even a short disdangerous pieces of equipment, if used incorrectly.

Falls — including those from ladders — are the most frequently oc- tance from the ground.

Ladders may be an important part of getting the job done on the curring and costly accidents in the construction sector. From 2007 to work site, but nothing is as important as 2009, there were 1,326 reported falls from ladyour workers. Keep them from being a staders with a claims cost worth over $60 million.

Falls from ladders tistic; make sure they’re using ladders safely.

Falls from ladders aren’t just something workRemember: It only takes a split second to ers bounce back from either; they usually take can cause serious, change a life forever. a person off the job for an average of 80 days.

No matter what type of work or project Imagine losing one of your seasoned workers life-changing injuries — you’re doing, always plan for safety like you for nearly three months, and having to train a even death. plan any other part of the job by making new worker to replace him. sure you have the right tools and equipSometimes workers don’t bounce back at all.

Falls from ladders can cause serious, life-changing injuries — even death. ment to work safely. While safety in the construction industry From 2006 to 2010, there were 10 deaths in the construction industry as is improving, we still need focus our efforts on the most serious, a result of falls from ladders. I think you would agree that this is unac- costly injuries: falls. ceptable.

Anytime a worker is injured or killed at work, it’s not just about them. Resources The consequences and impact of that incident echo throughout their For resources and more information on how to prevent falls from families, their coworkers, the work site, and the industry as a whole. ladders, check out WorkSafeBC.com >Safety at Work >Construction Before you or any of your employees start work, ask yourself: Do I >Top 3 Accident Types: Falls. have the right tool for the job? Consider whether a ladder is the best piece of equipment for the task, or if a properly-constructed work platPlease let me know what you think of this topic or any form or scaffolding would be easier to work from. construction safety issue. Call me at 604 214-6989 from the LowIf a ladder is used, it must be inspected before each use to confirm er Mainland or toll-free elsewhere at 1 888 621-7233. Or email that it’s in good condition and strong enough for the job. Make sure it’s don.schouten@worksafebc.com. I’d like to hear from you.

Connections

Reaching New Heights

By Cheryl Mah

A self-erecting tower crane working on a custom home project — BC

C

ranes are an integral part of construction operations and are used in a variety of industries from manufacturing to construction and oil and gas. No job site would be complete without a crane doing the heavy lifting.

Eagle West Cranes has been lifting, moving and raising materials for customers since 1990. From a humble beginning with two mobile cranes and 10 employees, it has grown into one of the top crane service companies in Western Canada.

Their multi-disciplinary approach (combining rigging, lifting and transportation) has led to a wide range of projects including signature ones like the removing of the famous “W” from Vancouver’s former Woodward’s building.

“We look for difficult jobs. We like doing the tough ones,” says Bob Fairbank, chief operating officer at Eagle West. “We often find it’s the quality of the work we do before we get the job that gets us the work. We put a lot of time and effort into doing our homework.”

Headquartered in Abbotsford, Eagle West operates a diverse range of businesses through several wholly owned subsidiary companies. The group of companies is involved in all aspects of the crane industry and include service, sales, and rental companies which provide hoisting, rigging, storage, transportation and installation solutions to all sectors.

6

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July/August 2011

Its fleet of equipment includes 110 mobile cranes and 50 self erecting tower cranes, providing customers with total lifting solutions for almost any job. Eagle West is also the exclusive Koenig dealer in North America.

The company has enjoyed steady annual growth (20 per cent or better) since 1990. In the last five years, that growth has spiked. Revenue has more than quadrupled with its strategic acquisitions in Alberta and the significant growth in wind energy.

Eagle West purchased Stampede Crane and Rigging in 2007 and a year later acquired three other Southern Alberta based companies. The acquisitions add to the company’s inventory of equipment while also enhancing its ability to serve its customer base there.

“Right now it’s much busier for us in Alberta. Alberta is booming — power line, oil and gas, wind …the only thing not going in Alberta is construction,” says Fairbank.

Most recently Eagle West broadened its activities to include installing wind farms.

Incorporated in 2009, Eagle West Wind Energy has seen phenomenal growth

installing wind farm generators in various locations across the country. That growth will see it become the largest division for the company in 2011.

“We’re the largest installation and craning company in Canada with 30 per cent market share in the wind business,” says Fairbank, adding the wind energy division help to offset the effects of the recent market slowdown.

The company is currently working on three wind farms in Ontario and central Alberta. Their first project was the $140 million Taber wind farm in 2007, the largest wind farm in Alberta.

Eagle West was also responsible for B.C.’s first wind energy farm — the $200 million Bear Mountain Wind Park near Dawson Creek completed in 2009.

The company uses one of the industry’s few narrow-tracked crawler cranes for its wind energy projects. The crawler can travel fully assembled on a track only 4.8 m wide, saving on production time and road construction costs.

“It has been strategic for us on a couple of projects,” notes Fairbank. “It saves the contractor money on road construction and it speeds up the erection process because the crane can travel with the boom in the air.”

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Connections Setting up turbines at Castle Rock Ridge Wind Farm — Alberta

Fairbank counts the success of the wind energy division among his career highlights. “It has given me an opportunity to really put my stamp on Eagle West.”

Born in Mission, B.C., Fairbank joined Eagle West in 2006 after spending more than 25 years in the cement and concrete business.

Graduating with a technical diploma in civil engineering technology from SAIT in 1980, his first job was with Con-Force, a large precast company.

“I started as a draftsman and ended up being trained to run the first computer graphics machine in Canada,” recalls Fairbank, who also completed his MBA at Athabasca University in 2001.

He joined Rempel Bros. Concrete in 1992 as sales manager and assumed the position of vice president and general manager in 1999. During his tenure, he led the company through significant growth and capital investment.

When Eagle West owner and founder Jim Barkman (who was a customer of Rempel) offered Fairbank a partnership opportunity, it was one he could not pass up.

“I’ve always wanted to own my own company and the timing was perfect,” he says.

As COO, Fairbank is responsible for the day to day operations of all the companies which operate out of four offices in B.C. and four in Alberta.

And Fairbank hasn’t completely left the cement business since Eagle West also has a precast plant in Langley, which is still supplied by Rempel.

“We’re the largest manufacturer of concrete median barriers in B.C.,” he says.

The company manufactured the concrete barriers for the Golden Ears Bridge, which opened 8

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July/August 2011

Placing concrete barriers on the Golden Ears Bridge — BC

in 2009. It is currently supplying and installing concrete median barriers for the Port Mann Hwy 1 project — the company’s largest single contract to date.

“We have a fleet of trucks specifically designed to transport and place those barriers,” says Fairbank.

The company’s core values of honesty, teamwork, caring, humility and creativity have driven much of its success over the past 21 years. Today, the staff (salary employees number about 60 with crews peaking at 300 in the summer) strive to honour those values while providing the best service possible to clients.

Eagle West is not only committed to its own people, but also believes strongly in giving back

to the communities in which it works. The company has two charities which operate year round to help families and people in need.

“We want to make a difference in the communities that we work,” says Fairbank.

Promoting safety and ensuring the safety of everyone is also paramount at Eagle West.

“Everyone is told this weekly: if you can’t do a job safely, then you fold the crane up and come back to the shop,” states Fairbank.

A new mandatory certification will help to improve crane operator safety. As of February 28, 2011, all crane operators in B.C. must have a valid safety certificate. The BC Association for Crane Safety (BCACS) was formed in November of 2005 to provide leadership

Connections “You can’t bid on a job today unless you’re for health and safety development within the COR certified and meet a number of safety crane hoisting industry.

The CraneSafe Certification program devel- standards — you have to be 100 per cent comoped in partnership with the BC Government, pliant to submit a bid,” notes Fairbank. “From Worksafe BC and the B.C. crane industry is one 10 years ago, there’s no comparison. It’s a way of the most comprehensive crane safety certifica- safer business today.”

Being environmentally responsible has also tion programs in North America.

Eagle West has been closely involved in devel- become increasing important in the last decade oping the new crane safety certification system, and Eagle West has made efforts to do their part.

“We recently came out with a new vehicle which was launched in December 2008.

“We were the first company in B.C. to have policy used by staff where we’re switching to all 100 per cent certified operators,” says Fairbank, noting they are also a certified training provider through its Eagle West Academy introduced in 2009. The training centre offers courses in operating a wide range of equipment, which benefits the industry as well as employees.

The new safety certification was also needed because non-union operators were unable to get red seal certification, according to Fairbank.

Previously, apprenticeship programs for crane certification were only available through the In- hybrids — the Toyota Highlander and Chevrolet Silverado pickup. It will save us $70,000 a year in ternational Union of Operating Engineers.

“In B.C. the Operating Engineers were the fuel,” says Fairbank, adding all their equipment are only ones offering red seal but you had to be regularly inspected and maintained and, “At our union to go there. Non-union was left out and precast plant we have 100 per cent zero discharge that’s why we needed this new certification for and we recycle everything at our facilities.”

Moving forward, the company’s focus inoperators — it made it fair,” he says, adding in cludes more strategic acquisitions, working on Alberta, operators have to be a journeyman.

2011.pdf 2/2/11 a succession 4:37:07 PM plan and continued growth of its IncreasedConstruction crane safetyBusiness has certainly been one wind energy division. of the biggest changes in the industry.

Increased crane safety has certainly been one of the biggest changes in the industry.

“One of the defining factors in our success is we’re 100 per cent non-union. It helps us be very competitive. It’s the reason why we’re so successful in the wind energy business because nobody else can do it non-union. All our competitors are union,” says Fairbank.

Fairbank has always managed in a nonunion environment and has significant labour relations experience. He has been a board member for the Independent Contractors Business Association since 1999 and was association chair in 2008-09. His term as past chair ends this fall.

“I love the industry and learning what is important to members,” says Fairbank about his involvement. “We have a very bright future in Western Canada. Globally we’re well positioned with resources and quality of life. I think we’ll see continued growth.”

Finding the required number of skilled workers to meet that growth, however, remains a challenge. A skilled labour shortage is about to hit in Alberta, says Fairbank, but not yet in B.C. “We’re very committed here to hiring young people and taking them through to becoming certified operators in B.C. or a journeyman in Alberta,” he says. “We need to continue to attract young people into the industry that see it as a future, not as a job.”

Outside of work, Fairbank enjoys skiing, water skiing and salmon fishing. He has been married for 22 years to Barb and has three children.

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9

Feature Project

Brick Yard Station Revives Rail History

By Jean Sorensen

C

loverdale’s heritage rail theme is coming alive with development of Anthem Properties’ community shopping centre located in this historic hub of Surrey. The retail centre, sited on just over six of l0.4acres at the northwest corner of Highways 10 and 15, is also only a block away from the newly-built railway historic museum opening fall 2011.

Anthem project development manager Kate Sunderland says the heritage rail concept will be evident throughout the retail complex which houses five structures (a main building, two smaller retail buildings, a CIBC drive-thru, and a Rexall Pharmacy outlet). In total the retail mall will offer 67,760 square feet of community retail space in the form of food outlets and services.

Other major tenants include Staples Business Depot, Original Joe’s Restaurant, Starbucks, Clancy’s Meat Co. and Vera’s Burgers. Construction on this community shopping centre has started with site rehabilitation completed and the foundation work underway.

Lee-Anne Pitcairn, the City of Surrey planner who has handled the Anthem project from concept to approval, says Cloverdale residents strongly 10

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July/August 2011

support the heritage aspect of new construction.

“Whether it is people doing a retrofit or a new development,” she says, “It is one of the things that we look at.”

The retail mall will offer 67,760 square feet of community retail in the form of food outlets and services.

Cloverdale, an area that traces its development back to the mid-1800s when European immigrants arrived, had the distinction of having its own brickyard, which supplied building materials in Cloverdale’s now historic structures.

Clover Valley (which became Cloverdale) also

served as a rail hub. Both themes are being realized in the Anthem Brick Yard Station development, which will serve one of the Fraser Valley’s fastest growing communities.

Sunderland says that the design calls for aged, red brick to be used on the building faces with large steel canopies covering decks.

“We have taken a variety of ideas from (Vancouver’s) Yaletown — although it will not have a warehouse feel but rather a heritage quality that reflects the theme of Cloverdale,” says Sunderland.

She has been working with the Cloverdale archive staff to locate historic railway photos that can be enlarged and mounted on the side of buildings.

“We want black and white photos that are images of heritage railways and historic Cloverdale mounted at various elevations of the buildings,” she says.

Completing the rustic charm of the development are window frames done in black, roll-up garage doors, paving stones used throughout with sidewalks that are 10-15 feet wide, heritage lamp posts and exposed bolt detailing on buildings.

Dave Mackintosh Director, Capital Projects, Vancouver Coastal Health

BUIldING SAfE PATIENT cARE ANd ENERGy EffIcIENcy AT ST. MARy’S BEING POWER SMART MAKES BUSINESS SENSE When the expanded St. Mary’s Hospital in Sechelt opens in June 2012, it will be a showcase of the latest in safe patient care, where every patient will have his or her own room and bathroom, there will be separate sinks for staff, and everyone will benefit from maximum natural light and fresh air.

“St. Mary’s will be a model for how best to control diseases that can be transmitted from patient to patient,” says Dave Mackintosh, Director of Capital Projects for Vancouver Coastal Health. “At the same time, though, we wanted to make sure this expansion was energy efficient, because the more we can reduce our operating costs, the more we can put back into health care.”

By working with BC Hydro’s New Construction Program to computer-model the expansion, Dave and the project architect, Peter Busby of Busby Perkins + Will, were able to see exactly which energy-efficiency measures will save them the most.

“The energy modeling showed that we could reduce energy consumption by more than 360,000 kilowatt hours a year,” says Peter. “An added benefit: St. Mary’s will also be eligible for BC Hydro incentives to help with the cost of creating a high-performance building.”

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A10-504

Feature Project

The buildings are concrete and structural steel in a steel stud in-fill design, says Michael Vernon, project manager for Ventana Construction, which is serving as the general contractor on the project.

“It’s a pretty straight forward job,” he says. The project is expected to finish spring 2012. There will be approximately 50-100 tradesmen and workers on site during the construction.

“As we get closer to finishing there will probably be about l00 on site,” says Vernon.

The project design is by Kasian Architecture, while structural engineering is being undertaken by John Bryson & Partners. Other major trades working on the project include: B&B Contracting (site prep), Raven Roofing (metal roofing and cladding), Robertson Drywall Service (steel studs and drywall), Nightengale Electrical Ltd. (electrical), Russell Mechanical Systems (mechanical) and Broadway Refrigeration Co. (refrigeration).

The site did not come without restrictions as it is not deemed suitable for housing. As Pitcairn points out, the area is in a flood plain and clay soils.

It also needed soil remediation as it was previously used to store road maintenance materials such as salt and equipment. The site also has two nearby streams. They are not fish bearing, but tributaries to fish-bearing rivers and contribute food in various forms into those fish-bearing rivers.

An environmental assessment was carried out by ECL Envirowest Consultants and through a commitment to enhance the 12

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streams, Anthem was able to gain easements on setbacks. Sunderland says that areas around these streams are being planted with natural vegetations (near the Class A stream asphalt now in place is being ripped up and replaced with natural landscaping) while the second, Class B stream will also have riparian planting to serve as a bio-swale, which will cleanse water that might reach that stream.

“As well, we will have pavers throughout the development (which allow water to percolate into the ground rather than run off ) and that makes a huge difference to water quality,” she says.

The mall will have a rail theme, reflecting the history of Cloverdale.

The rail theme of the mall will have two historic links to the community. It is only a block from where the Interurban rail line (a commuter train) and the U.S. Southern Railway tracks once crossed when Cloverdale was taking shape. And, it is only a block and a half away from where the City of Surrey has provided a site for the Fraser Valley Heritage Rail Society (FVHRS) museum. The City has acquired land just south of Highway 10 along

176 St for the building of a new car barn to accommodate two refurbished rail cars. The site with the car barn is located at the corner of 64th Ave and 152nd St. The area is also home to the Sullivan Station, a replicated railway station that also has a rail car barn that housed the refurbished rail cars.

Paul Orazietti of the Cloverdale Business Improvement Association says the area’s businesses are very much in favour of preserving a heritage theme and marketing around that theme as seen with Brick Yard Station. But, the development also “puts more mass into the town centre,” he says, adding that current commercial development in the area needs to undergo more densification to better serve area residents, especially those who want to walk to a shopping area or look for a short commute.

“It will make the city centre more sustainable and offer larger diversity in retailing,” he says.

Phase II of the development will cater to light industrial and industrial park users. Although still in the conceptual stage, Orazietti says the second portion of the development will offer a good opportunity for light industrial as cities such as Vancouver have reduced their available land in favour of housing.

“This has given areas such as ours an opportunity to offer industrial land,” he says, adding that the land comes with a lower cost than in larger more populated areas. “There is a shortage of industrial land today, yet there’s a major need.”

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Feature Project

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13

Open Shop

Public investment builds private benefits

By Philip Hochstein

P

ublic infrastructure is about so much more than new highways and hospitals and university buildings. It’s about more than making sure bridges and dams and public schools are ready for the next earthquake.

The magic of public infrastructure is the whole is equal to more than the parts. Our public infrastructure is the foundation of our prosperity as a province and the quality of life for British Columbia’s families. It’s so much more than the jobs created building these projects.

Simply put, it builds our economy and our industry.

Roads and bridges are more than ways of getting people from Point A to B. They are the lifelines of commerce and industry. Like all public infrastructure, the transportation network creates a foundation used by private sector investment to generate wealth, protect and create jobs, and provide the kinds of services that make British Columbia the place where so many people want to live. And that private sector investment needs construction.

That’s why it’s so important that government avoid the temptation to scale back their capital spending on these projects in tough budgetary times. It may look like the easiest way to balance 14

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the budget is to slash spending on infrastructure.

The truth is it is the worst place for government to find money.

budget for infrastructure. This is fundamental to the prosperity and well-being of our industry and our province.

Why B.C. needs infrastructure

How to pay for public infrastructure

Our province has come to the point where we face crucial requirements for both types of public infrastructure — social and economic.

Social infrastructure is made up of hospitals and schools and the demand is being driven by a number of factors: our growing and aging population; B.C.’s failure to maintain and rehabilitate existing assets; and the heavy demand for seismic upgrades to schools and other assets.

On the economic side, demand for new infrastructure is driven by B.C.’s strong growth over the past decade, a growing opportunity to expand the export of B.C.’s and Canada’s products to Asia and to the United States, and the growing need for greener transportation options.

Deferring is not an option. NDP governments failed to spend on infrastructure in the past — and since 2001 we have been playing catch-up in trying to erase the infrastructure deficit they left behind. In order to meet these challenges, the province must have the commitment and the ability to fund an adequate capital spending

In the first decade of the 21st Century, capital spending by the provincial government averaged $4 billion per year. When the financial crisis and recession hit in 2008, this spending was ramped up — and it played a critical role in providing economic stimulus. Capital spending averaged almost $7 billion between 2008/09 and 2010/11.

Current capital spending plans by Victoria average about $6.2 billion for 2011/12 through 2013/14.

How much is enough? Like all matters in the public sphere it is a matter of choice. If British Columbians and their government want to meet our infrastructure needs and continue stimulating B.C.’s economy, the $6 billion level of capital investments should at the very least be maintained, if not increased.

British Columbia can do what may seem impossible at first glance ­— maintaining our jobcreating infrastructure investments while moving the provincial budget back into the black.

Open Shop The simple truth is that credit rating agencies see the debt associated with public infrastructure investments the same as borrowing money for operating costs. B.C.’s current fiscal plan — with its $6 billion in infrastructure investments — passed their test, and the provincial government maintained its AAA credit rating.

B.C. needs to take its debt and deficit situation seriously. A credit downgrade of just one step would raise interest costs by between $25 million and $50 million a year. That is enough to wipe out major projects like the Shuswap Lake General Hospital renovation or the St. Mary’s Hospital Expansion.

Phone 604.576.2739

Fax 604.576.4739 | Email info@dualmechanical.com #208 - 19232 Enterprise Way, Surrey, B.C.

Building for B.C.’s future British Columbia cannot afford to balance its budget by reducing its capital infrastructure investments. Money saved today would be far out stripped by the investments and benefits lost in the near future. We would lose the ability to increase our revenues and pay for future spending to support our social and infrastructure needs.

For the good of our province B.C. must continue with an aggressive economic and social infrastructure program to meet our urgent needs.

Philip Hochstein is president of the Independent Contractors and Businesses Association of B.C.

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We have been serving the mechanical industry for 33 years and are a Gold Seal Certified Company.

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July/August 2011

construction business

15

Open Shop

Increasing Productivity

Changes to labour standards could boost productivity in construction.

By Jason A Keenan

W

e have a lot to brag about in the construction industry. We keep thousands of British Columbians employed. We build some of the world’s leading edge projects. We are helping build our province and our country.

But we have a dirty little secret — some of the worst productivity in the developed world.

We lag when compared to other industries. And Canada lags when compared to almost every other developed country.

We can do better. Our industry lives by the words “give us the tools and we’ll finish the job.”

The time has come for the federal and provincial governments to give us the tools we need to boost productivity — and our economy.

Luckily, minor changes can have a major impact on productivity. Such changes would improve the efficiency of B.C.’s economy, introduce much needed flexibility for employers and employees, and modernize our workplace rules.

No job site or office operates like it did 20 or 30 years ago. Why should our labour laws?

Statutory holidays are a great example. Dates are written in stone. Pay rates for people working those days are prescribed in law. And if you

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The time has come for the federal and provincial governments to gives us the tools we need to boost productivity… happen to have different beliefs, you’re out of luck. Celebrating Good Friday is legislated.

Yom Kippur is a personal choice.

A simple change could go a long way. Allowing employers and individual employees to mutually agree to swap a statutory holiday to a different day — without having to pay overtime for the original stat — would help solve this.

Matching stat holiday rules with those in our competing jurisdictions could also boost productivity. This would mean moving to a longer 90-day qualifying period and making stat holiday eligibility dependent on an employee working the last scheduled day prior to the holiday and the first scheduled day after the holiday (with exceptions for reasons such as illness, vacation, or other authorized leaves of absence.)

Flexibility is also a key tool in hiring and retaining the best and brightest in the job market.

Current labour standards just don’t help. They treat all employees as if they were interchangeable cogs in a machine.

Construction companies know that senior employees — people with technical and professional jobs — are compensated differently, approach work with different expectations, work different hours. Even if they want flexibility in their employee-employer relationship, they cannot have it. Companies and senior employees would reap the benefits if we were freed from the prescriptive shackles of current labour standards and allowed to freely negotiate and agree in writing with their employers on the terms and condition of employment.

Everyone appreciates our wide variety of structural solutions

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With over 4,000 different projects completed in the last 45 years, Glotman . Simpson has earned its reputation as one of the West Coast’s top structural engineering firms. In the past decade, we have been the structural engineers on a significant number of major projects in Canada and the Western United States. The wide range of these projects has enabled our firm to develop unparalleled diversity and skills.

Our leading-edge, but cost-effective solutions can be found in academic, commercial, healthcare,

UBC Sauder School of Business

high-rise residential and industrial construction.

We also have significant expertise in seismic design and upgrade, as well as green solutions.

We’ve brought great thinking to projects of almost every kind and magnitude through a highly collaborative approach to engineering. To find out more about Glotman . Simpson’s diverse capabilities and unparalleled experience, please visit our website. You’ll see the wide variety of our structural solutions there.

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Open Shop

One way to boost productivity… would be to improve the current overtime averaging system.

Congratulations ICBA on all of your hard work on behalf of our industry.

We are proud to be members of the ICBA! (604) 583-1174 #520, 10470-152nd Street Surrey, B.C. V3R 0Y3

www.metrocanconstruction.com WE MAKE IT HAPPEN

Our labour standards are stuck in the world of a 9-to-5 clock. We could boost our productivity if we moved beyond this to something that better reflects the modern workplace. One way to boost productivity — ­ especially in construction — would be to improve the current overtime averaging system. It was brought in to help construction companies deal with the project nature of the work — but the system is so complex that is almost unworkable.

A new system that protected employees’ rights, while allowing employers and employees who agree to average hours of work over a multi-week period to determine overtime premiums, would introduce much needed flexibility.

Finally, one major change would probably bring the biggest benefit to employers and the economy, save the government millions of dollars, and inject efficiencies and cost-savings into the system. But it will take courage.

A Unified Workplace Tribunal would get rid of the duplication of services that now exists between the B.C. Labour Relations Board, the Employment Standards Branch, and the B.C. Human Rights Tribunal when it comes to workplace-related disputes. The current system encourages participants to “shop their case” to the agency expected to award the most favourable outcome. That’s unfair and a waste of resources.

Also a challenge is the nature of the Human Rights Tribunal. It’s legalistic, driven by people who see themselves as advocates rather than adjudicators, and it has little to no workplace experience. All of this makes it an expensive, time consuming place for an employer to end up — taking time and money out of growing the business and hiring more people.

A single workplace tribunal would end this.

The Human Rights Tribunal would exist — but workplace issues would go to Unified Workplace Tribunal. This would foster real, meaningful, and quick dispute resolution. Workers, employers, and the government would reap the rewards.

Our province has a chance to boost productivity in construction and across our economy with these simple changes. Workers, employers, and our economy would grow and thrive if we have the courage to create 21st Century labour laws for a 21st Century economy.

Jason Keenan is communications director, Independent Contractors and Businesses Association of B.C.

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Open Shop

Open Shop Goes National

By Philip Hochstein

F

or the past three decades, the open shop has been a mostly provincial affair.

Here in B.C. the Independent Contractors and Businesses Association (ICBA) has focused its advocacy efforts on Victoria and provincial finances and employment rules and regulations. The same holds true in the seven other provinces with open shop construction associations.

But it’s something that hasn’t happened on a regular basis in Ottawa. The existing construction institutions and lobby groups are heavily dominated by the old-line building trade unions.

But no more.

That’s why Merit Canada — the umbrella group for Canada’s eight open shop associations — has planted a permanent presence in the nation’s capital. The goal is getting the open shop message to politicians and decision makers — that all qualified people and companies should be able to bid on work and projects regardless of their union affiliation. It’s a matter of making sure the open shop sector has access to the construction pie.

When we fight for the open shop ideals, we’re fighting for the Canadian taxpayer to get the

best possible value from their tax dollars invested in construction. The open shop also believes in growing the Canadian economy. Bad regulations and high taxes are a drag on the economy.

Everything a government does to lower taxes and increase productivity makes the economy stronger. And if the economy grows, construction grows. That’s about growing the construction pie — so there is more work for everyone.

Merit Canada… has planted a permanent presence in the nation’s capital.

All of this is why our provincial associations decided that 2011 was the year to take our umbrella association to the next level by getting a foothold in Ottawa.

We did that by opening a Merit Canada office just a few blocks from Parliament Hill, and

hiring Terrance Oakey as our first full-time president to deliver the open shop message to decision makers.

Oakey has spent the past decade in the public and private sectors providing government relations and strategic communications council to national and international clients. Most recently he was vice president of federal government affairs with the Retail Council of Canada.

Merit Canada is already seeing results — and getting noticed by Ottawa’s powers that be.

When Human Resources and Skills Development Minister Diane Finley announced the Harper Government’s new approach to coordinating information for job seekers across a spectrum of industries, Merit Canada was front and centre.

We made a commitment at that time to work with Ottawa to develop a new system to collect and share critical market intelligence and information that will give our industry and job seekers the information they need to plan for the future.

We’re especially proud here in B.C. that all of this is happening with a long-time ICBA member helping set direction. As chair of Merit

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Open Shop

Canada, Jim Laurence is helping to guide the organization as it builds the national voice for the open shop. The former ICBA board chair and president and chief operation officer of Carillion Pacific Constructors has seen what happened here in B.C. over the past 35 years. It’s something that can happen nationally.

Open shop went from doing 15 per cent of the construction in B.C. in the 1980s to doing close to 85 per cent today.

What we’re starting this year with Merit Canada is something that will benefit taxpayers and the entire construction sector in years to come.

One day when we look back, we will say this is

when we began the march to victory for open, transparent tendering and began saying good-bye to building-trades-only construction deals.

Philip Hochstein is president of the Independent Contractors and Businesses Association of B.C.

Proud to be an ICBA member Nightingale Electrical Ltd. 138-11121 Horseshoe Way, Richmond, BC V7A 5G7 Ph: (604) 275-0500 Fax: (604) 275-8900 email info@nightelect.com

www.nightelect.com July/August 2011

construction business

21

Steel

Steel Pricing: Relative Stability

By Norm Streu

I

n relative terms, 2011 has so far seen relative stability in steel pricing. After a dramatic run up in late 2010, steel prices have remained within a 15 per cent spread so far in 2011.

Given the wild price swings of recent years, this has been a welcome respite. Our assessment is that the recent relative calm arises from a balancing of positive and negative global drivers. As we move into the third quarter of 2011, we believe these factors will begin to sway towards the positive and towards initially modest but real upward pressure on pricing. Our longer term outlook remains continued volatility, but an upward trend.

The volatility in steel prices in recent years cannot be overstated. Steel prices almost doubled through 2007 and 2008. Then, with the onset of the global recession, they collapsed to a point lower than where they were before the run up began. For most of 2009 they bumped along this bottom, only to begin an upswing again in 2010.

In late 2010 prices spiked again, rising approximately 25 per cent in six weeks.

This volatility puts enormous pressure on everyone involved in steel procurement. Developers and owners invariably want certainty as to their costs; they certainly don’t want to be surprised by rapid escalation in major cost items like steel.

Steel contractors like LMS Reinforcing Steel need to find ways to manage the risk of this volatility, while seeking to give developers and owners

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July/August 2011

the price certainty they require. This risk is particularly pronounced on larger, multi-year projects.

There are a variety of factors that have kept steel prices in relative balance so far in 2011.

China’s insatiable appetite for steel continues, but the pace of the growth of that demand has slowed considerably. Given the huge growth numbers of recent years, a slowdown in the percentage increases is not a surprise. However, the relative softening of demand in China is being offset by the steady growth in other parts of the world, particularly Brazil and India. China has also recently raised the cost of its electrical power, which will put upwards pressure on its steel pricing despite the slowing growth in demand.

Automobile production cuts and other supply chain disruptions arising from the Japanese earthquake and tsunami have put a damper on steel pricing. While the impact of the earthquake and tsunami on global steel supply and demand forces may be over-stated, it does appear to have had a global impact on bullish steel market sentiment.

While demand is rising in the U.S. as its economy recovers, this increased demand is being met with ease by the considerable slack remaining in the U.S. production capacity. U.S. mills are coming off of incredible lows, and therefore despite the slack, the growth in demand based on earlier years is considerable. Soon the excessive capacity

will be diminished and U.S. steel mills will do everything in their power to increase prices to a level where they can begin to recoup the past few dismal years.

Across the Atlantic, Northern Europe is showing steady demand increases, but Southern Europe continues to flounder. The sovereign debt crisis remains a huge risk moving forward, but assuming that crisis can be effectively managed, Europe should continue to move towards a more broadly based recovery.

While short term steel pricing is very difficult to anticipate, our sense is that the positive drivers will begin to win out for a couple of reasons.

First, summer is the construction season in most of the northern hemisphere and this typically puts upwards pressure on pricing. Second, absent some new major shocks to the global economy, the arrows point in the way of rapid growth in the developing world and steady recovery in the developed world.

Therefore, while there remains an unusual amount of uncertainty and risk in virtually all the major global economies, we nonetheless see it as more likely than not that we will see continued upwards pressure on steel pricing.

Norm Streu is the chief operating officer of the LMS Reinforcing Group, a leading rebar fabricator and installer in Western Canada.

Steel

First of its Kind

The new Cliffwalk at the Capilano Suspension Bridge Park is a groundbreaking steel structure.

By Kent LaRose

T

he Capilano Cliffwalk is located at the Capilano Suspension Bridge Park in North Vancouver home to the world famous Capilano Suspension Bridge and the multiple award winning Treetop Adventures canopy walkway. This pedestrian “bridge” structure was conceived when John Stibbard, vice president of operations for Capilano Suspension Bridge, rappelled down the eastern face of the canyon in 2006. He instantly realized that the park guests would be very interested in the educational opportunities that the unique floral and fauna would provide. The problem was how to construct a structure that would safely let people access the cliff face while conserving the environment and satisfying the vision that John had conceived.

The solution was a series of narrow (0.5 m wide) steel bridges, stairs and platforms that take visitors over the edge of the 90 m high cliff. In total, 36,700 kg of steel was used to construct the 213 m long walkway that consists of a 4.3 m high spiral staircase, 8 bridges (including one cable supported curved bridge), seven stairs and two glass floor platforms. All of this was constructed only requiring 11 square meters of foundation area and 486 m of steel rock anchors.

The design and construction techniques developed were completely intertwined. Major considerations were rock fall hazards, construction access within the parks’ West Coast rain forest, the need for passively controlling the flow of pedestrians in the park, noise/dust since the construction would be in an active tourist park, and the aesthetics. More than just infrastructure, the Cliffwalk also was designed to serve as the

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medium for the interactive educational displays that were developed in conjunction with the David Suzuki Foundation.

The design process started with a field reconnaissance of the rock face by rappelling every 2 m along the face of the cliff to determine best probable foundation locations and overall route location, accounting for tree locations. Suitable locations for foundations were established based on visual observations of the rock face and then surveyed for inclusion in the 3D Prosteel model used to detail the structure. The next step was to fabricate steel foundation plates that could be attached to the rock face with steel rock anchors followed by another round for surveying to establish the location of the foundation plates. This information was updated in the Prosteel model and the HSS primary structural steel system was then fabricated and installed on site. The final miss closure of the last joint in the 213 m long structure was only 15 mm. This was followed with installation of a timber deck constructed from locally hand felled Douglas Fir. Rock fall risk management was identified as an early design constraint. To mitigate pedestrian exposure to any stray rock fall, the majority of the walkway is cantilevered from the rock face by 3.0 m, with the cable supported curved bridge reaching out almost 8 m. Rock management is also provided by the construction of reinforced soil slope at the crest of the cliff, stabilizing the cliff face with rock bolts and the construction of rock fencing wherever the field testing of rock trajectories indicated.

A very important project driver on the project was the aesthetics, which was described as light

and airy. The focal point of the experience was not intended to be the structure itself and as such the team was constantly making improvements to the design during construction. An example of this was the evolution of the post and railing system. It was decided early on to have inclined posts, setting the hand rail at 1.2 m above the deck to provide 0.8 m of clearance between them. This is wide enough to discourage two-way pedestrian movement while still allowing room for two people to pass each other, a requirement when people are stopping to take in the visual beauty of the park. It was also decided that since the walkway was narrow, that vertical bars would limit the view as observed from a person on the deck given the prolixity to the railing. A “non-climbable” design was developed using tensioned horizontal cables and a prototype fabricated using four posts. This ended up failing to satisfy safety requirements and requiring a redesign. This turned out to be a great opportunity to develop a solution, which was satisfied by specifying X-TEND©, a stainless steel woven

PROJECT INFO • Morrison Hershfield with partners Wyllie & Norrish Rock Engineers and McElhanney provided the complex design and survey services.

• Solid Rock Steel was steel fabricator.

• Pacific Blasting & Demolition installed anchors.

Steel

The design and construction of the Cliffwalk has resulted in a visually appealing and unique “bridge” structure that reinforces the sustainable tourism model already in place at the park. It illustrates that structures can be successfully constructed to serve a purpose that goes above and beyond the utilitarian nature of most modern bridges. Opened on June 3, 2011 the Cliffwalk has been received with many accolades.

wire mesh, manufactured by CarlStahl© Décor Cable. The X-TEND© mesh can be designed to take on any tensioned 3D geometric shape and provided a barrier system that conformed to the ever changing geometry of the Cliffwalk. Once the woven wire mesh was blackened using a salt oxidation process it virtually “disappears” from site when view from all angles, meeting the visual requirements of the project and also providing a very durable barrier. Consistent with the high level of customization on the project, the Cliffwalk uses 236 custom detailed posts to support the stainless steel woven wire mesh. The barrier system was finished with more than 450 m of 48 mm diameter polished stainless steel handrails along both sides of the walkway. Locations of glass floors have also incorporated glass panels into the railing system.

engin

Kent LaRose, M.A.Sc., P.Eng., is based in the Vancouver office of Morrison Hershfield Ltd. where he is the regional bridge manager for Western Canada. As a bridge engineer he provided consulting services for the replacement of the world famous Capilano Suspension bridge and was also involved in the design of Treetop Adventures, both located in North Vancouver.

eering ▪

sur vey ing ▪mapping Steve Hobbs Chief Operating Officer Corporate Office

Allan Russell

Vice President, Vancouver Region Engineering

Dwight Heintz

Branch Manager, Vancouver Region Engineering

s ice v r se al ▪ e t n e nvironm

McElhanney Announces Key Appointments for a Second Century of Success McElhanney Consulting Services Ltd. is pleased to announce recent key appointments as the company enters its second century of operations.

Steve Hobbs now moves to Chief Operating Officer, managing our internal operations and business development. Allan Russell will lead the Vancouver Region Engineering branch as Vice President, with Dwight Heintz as Branch Manager and Santino Pirillo as Assistant Branch Manager.

Our new leadership team brings over 100 years of combined experience in a variety of civil engineering disciplines, all of which will enable McElhanney to offer enhanced solutions to its clients throughout Western Canada.

Santino Pirillo

Assistant Branch Manager, Vancouver Region Engineering

Your local partner since 1910 vancouver@mcelhanney.com www.mcelhanney.com/mcsl 604-683-8521

July/August 2011

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Steel

Alberta 2011 Steel Design Awards of Excellence

ARCHITECTURAL AWARD Art Gallery of Alberta

SUSTAINABILITY AWARD Dawson Bridge Rehabilitation

Architect: Randall Stout Architects, Inc.; HIP Architects, Associate Architect Engineer: DeSimone Consulting Engineers CISC Engineer: BPTEC-DNW Engineering Ltd. CISC Steel Fabricator/Detailer/Erector: Empire Iron Works Ltd. General Contractor: Ledcor Construction Limited

Owner: City of Edmonton CISC Engineer: DIALOG CISC Fabricator/Detailer: Empire Iron Works Ltd. and Steel Design and Fabricators Ltd. Steel Erector: Steel Design and Fabricators Ltd. General Contractor: ConCreate USL Ltd.

Structural steel was the only choice for the new Art Gallery of Alberta.

The steel structure provided a barrier-free and flexible gallery space that is supported on only six columns. Steel provided the means to complete the architect’s grand vision for the atrium space and his interpretation of the Aurora Borealis. The angular, transparent glazing planes forming the building envelope of the atrium, and the curving, reflective metalclad borealis surfaces that penetrate the building envelope at multiple locations, work together to animate the building, expose the activities within, and engage people and art at multiple levels on both the interior and exterior.

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During its 2010 rehabilitation, its deteriorated concrete-on-timber deck was replaced with an SPSTM composite steel plate and elastomer lightweight deck system. Dawson is the largest bridge in the world with this innovative steel deck system, and the first with unique bolting details that entirely eliminatefield welding. The shop-fabricated lightweight steel deck drastically reduced the need for truss strengthening. Bolted quickly into position, the steel deck allowed the entire rehabilitation project—strengthening, painting, deck replacement, and sidewalk widening—to be completed in one year, months faster and millions of dollars less expensively than a traditional concrete deck.

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Steel

STEEL EDGE AWARD Whitemud Drive/Quesnell Bridge Widening Rehabilitation — Pier Cap Extensions Owner: City of Edmonton Engineer: CH2M HILL Canada Limited CISC Steel Fabricator/Erector: Waiward Steel Fabricators Ltd. CISC Detailer: M&D Drafting Ltd.

Steel pier cap extensions were ideal solution for this bridge widening project. Selective use of steel was key in meeting a fundamental requirement of this project. Concrete extensions would have led to excessive additional weight on the structure. Also, placement of major concrete formwork above the river would have been a difficult process.

Ten steel cap extensions were designed, two for each of the five piers.

Each extension consisted of a compartmentalized pier cap top element, an inclined strut and a pier shaft bracket connection — all fabricated from steel to minimize weight while meeting geometric, stiffness and strength requirements.

engineering AWARD The Bow Owner: HR Real Estate Investment Trust/Matthews Southwest Architect: Foster and Partners/Zeidler Partnership Architects CISC Engineer: Halcrow Yolles CISC Fabricator/Detailer/Erector: Supreme/Walters Joint Venture General Contractor: Ledcor Construction Limited (Construction Manager)

The Bow is a 58-storey office, retail and cultural development for two highprofile energy companies in downtown Calgary. Its many notable design features make it one of the most innovative highrise office buildings in Canada today. These include its diagrid design, which sees the tower’s structural skeleton on the outside of the building, and its stunning and innovative bow shape. The diagrid, composed of six-storey high diagonal elements, creates a perimeter frame of linked equilateral triangles curved to match the bow of the building on the north and south faces 28 construction business

July/August 2011

INDUSTRIAL AWARD Shell Canada Energy Reactor Building Modifications Owner: Shell Canada Energy CISC General Contractor/Fabricator/Detailer/Erector: Eskimo Steel Ltd CISC Engineer: BPTEC-DNW Engineering Ltd

Retrofitting the fabrication facility presented the design-build team with unique challenges requiring creative design and installation solutions. The team’s solution was a series of three-dimensional tower columns made of HSS and recessed between the existing pre-engineered building columns.

The towers support not only the gravity loads but also the lateral loads imposed by the cranes, eliminating the need for horizontal trusses and maximizing overhead crane span and lateral hook travel.

Engineering

Aging Glazing Systems

Re-glazing existing building stock presents energy reduction opportunities.

By Douglas Watt

UBC Sauder School of Business

A

s the building stock in our cities ages, revitalization and continuing re-use or re-purposing of these buildings will require replacement of aging glazing systems. There will be a positive impact from this work in making these buildings more sustainable, through improvements to energy performance. We know that Canada is the fourth largest total consumer of energy in the world — about 40 per cent of which is used for space heating of buildings.

According to a B.C. government sponsored study, in a typical multi-unit residential building, 31 per cent of heat loss is attributable to the glazing system, while an additional 24 per cent is due to air leakage (leakage often occurring around glazing interfaces).

Nic Lehoux

Canada is the fourth largest total consumer of energy in the world – about 40 per cent of which is used for space heating of buildings.

The advent of the widespread use of double glazing in the 1970s made a dramatic change to glazing system performance, and the City of Vancouver’s 1991 Energy Utilization By-Law (referencing ASHRAE 90.1 — 1989) made common the local use of low-e coatings. The B.C. government is looking to push the industry to take another leap. With a mandate to have 50 per cent of BC Hydro’s incremental needs met via conservation by 2020, B.C. added a Part 10 to their Building Code in September of 2008, referencing ASHRE 90.1 — 2004 (the Vancouver Building By-Law references the 2007 version), and in January of 2011 brought in regulation changes to the BC Energy Efficiency Act to set limits on U values (a measure of the heat flow through an assembly) on glazing systems manufactured in, and imported into B.C. We have been taking steps to amplify the impact of these changes in our industry. Our internal Sustainable Design Initiatives have set in place strategies to ensure that all of our staff have frameworks to help find sustainable approaches in project work with our clients.

July/August 2011

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29

Engineering

The future in re-glazing of our existing building stock will present great opportunities in re-use of buildings...

Existing single pane windows at the Sauder School of Business were replaced with high efficiency double pane glazing.

Concurrently, we have brought a new focus to our glazing practice with the expansion of our structural glass and façade engineering group nationwide, and bolstering our resources in this pivotal field. Furthermore, we have been active in pushing industry change through our professional service work, such as our efforts in re-writing of the National Glazing Specifications Manual.

While regulation changes will improve system performance in new construction, we are working with our long-term clients to review 30 construction business

July/August 2011

their building stock for opportunities to replace glazing systems with better performing assemblies. For a major pair of office towers in downtown Vancouver, we have designed a scheme to build onto the existing single glazed frame with a veneer assembly to upgrade these buildings to the performance available through a double glazed assembly within a thermally broken frame, while limiting disturbance to the occupants of the buildings.

In some instances, it may be difficult to demonstrate the economic case for doing a full re-

glazing. In our work on a Burnaby office tower, simple payback studies indicated (accounting for reduced energy consumption, at today’s rates) that the payback periods for full system replacement would be longer than the life of the replacement systems, and so instead a program utilizing the existing frames is being undertaken to replace the failing sealed units. What we have found is that a paired approach, linking a heating plant replacement with re-glazing (taking advantage of the reduced heating capacity needs with a better performing glazing assembly), is often necessary to realize effective payback periods. In some re-glazing projects though, the reduction in energy consumption is easily demonstrable. At Vancouver Community College’s downtown campus, our design for a replacement to the old leaky t-bar skylights over the library and a set of classrooms, with a double glazed, low-e, and fritted glass (for solar glare control) skylight system has been so effective that the college’s problem has been finding a way to turn the heating plant down far enough in winter months.

A re-glazing project can also have other significant impacts. Our work providing both envelope consulting and structural restoration services on the revitalization of the Sauder School of Business at UBC with Acton Ostry Architects has been paying back in a number of ways.

As this project was undertaken under UBC’s guidelines requiring the meeting of a minimum LEED Silver equivalent, the project will make a significant impact on energy consumption on the campus. The architectural team was also recently recognized for the impressive upgrade to this building with a 2011 Lieutenant Governor of BC Architectural award of merit.

The future in re-glazing of our existing building stock will present great opportunities in re-use of buildings: maintaining the values of the built structures, and in turning these buildings into more sustainable users of our energy resources.

Douglas L. Watts, B.A.Sc., M.Arch., P.Eng., MAIBC, CP, BEP, LEED-AP, FEC, is a principal, building sciences and restoration, at Read Jones Christoffersen Ltd.

Engineering

Adaptive Management Approach SFPR: An Environmental Success Story By Malcolm Smith

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he Gateway Program consists of three distinct road and bridge infrastructure projects in Metro Vancouver, with an approximate capital cost of $3 billion.

Since 2004, Hemmera has provided environmental management services in support of the development of the South Fraser Perimeter Road Project (SFPR), an important element of the BC Ministry of Transportation & Infrastructure’s (MOTI’s) Gateway Program.

Hemmera was responsible for leading the process of obtaining environmental approvals for the project. We assembled and managed a team of specialists with expertise in assessing and addressing the potential impacts of the project.

The project, which is being delivered under a design-build-finance-operate (DBFO) concession agreement, received environmental approvals based on a reference concept. The final design was completed later by the DBFO contractor. As such, a key to obtaining environmental approvals for the project was developing a robust monitoring program to ensure the success of mitigation — such as wildlife crossings and maintenance procedures for right-of-way areas — in addressing potential effects on wildlife during the operation of the project.

In fall, sandhill cranes congregate in agricultural fields in the Lower Fraser Valley.

The monitoring program is based on the principals of adaptive management, and monitors the effectiveness of the mitigation that is integrated into the project. Where monitoring demonstrates that mitigation is not achieving the desired outcomes, additional previously agreed-upon mitigation is applied until effects are fully addressed.

Mitigation monitoring has been undertaken for several species, including sandhill crane, a migratory bird which forages in agricultural fields adjacent to the alignment of the road. In fall, sandhill cranes congregate in agricultural fields

in the Lower Fraser Valley, spending almost two months foraging prior to migrating south. During the EA process for the project, regulatory agencies brought forward concerns that vehicle noise and visual impacts from moving vehicles could potentially displace sandhill cranes from their preferred foraging habitat.

The installation of noise walls was considered to address the concern; however, noise walls are costly, lead to additional footprint impacts, and constrain the movements of other wildlife. An alternative mitigation approach was the instalJuly/August 2011

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Engineering

…monitoring has shown that potential impacts to sandhill crane can be mitigated through the use of vegetated berms.

lation of hedgerows adjacent to the road. The hedgerows reduce noise and act as a visual barrier between the agricultural fields and the highway.

Working closely with regulatory agencies, we helped to develop a mitigation monitoring program to ensure that the establishment of hedgerows would be successful in mitigating noise and visual impacts, and that more costly and intrusive noise walls were not required.

Since 2008, Hemmera’s ecological experts have been monitoring the sandhill crane presence and the cranes’ use of preferred habitat during the construction of the project. To date, studies are demonstrating that sandhill crane continue to use

agricultural fields beside the alignment, even with high volumes of construction-related traffic and heavy equipment operation on the established roadbed. Studies will continue during the operational phase of the project to confirm that the installed hedgerows are effective in mitigating noise and visual impacts from car and truck traffic.

The mitigation monitoring work being conducted is helping to confirm assumptions made during the environmental approval process. Specifically, the monitoring has shown that potential impacts to sandhill crane can be mitigated through the use of vegetated berms. More costly and complex mitigations, such as noise walls, are

not necessary. At the same time, the monitoring program provides assurances to regulators; it is evident that MOTI is committed to ensuring that mitigation is successful during the full operation of the project.

The mitigation monitoring program at SFPR has provided MOTI with a timely and cost-effective way of obtaining project approval. The monitoring has also provided regulators with confidence in the proposed approaches to mitigating environmental effects. We are proud to have had the opportunity to work with MOTI to plan and deliver this innovative approach to managing the wildlife issues associated with this important project.

Malcolm Smith is project director at Hemmera, a boutique environmental consulting firm. For more information, contact him at 604.669.0424 or email msmith@hemmera.com.

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Engineering

Improving Quality Management APEGBC is implementing a voluntary program aimed at reducing professional risk at the organizational level. By Gilbert Larocque

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onsulting engineers and geoscientists provide a wide range of services to the construction industry. Recognizing the significant influence that organizations employing engineers and geoscientists have on the practice of the professions, the Association of Professional Engineers and Geoscientists of BC (APEGBC) formed a Task Force in 2010 and carried out a pilot project to examine the current and best practices in the association’s programs and processes. The pilot project reviewed nine organizations in the construction, consulting, manufacturing, high-tech and utilities sectors, as well as in government.

The Task Force recommended the implementation of a program that would introduce inhouse quality assurance procedures that systematically address specific practice obligations of engineering and geoscience employees under the Engineers and Geoscientists Act and the bylaws of the association: • Application of the relevant APEGBC technical practice guidelines; • Retention of complete project documentation; • Documented checking using a written quality control process; • Documented independent review of structural designs; • Use of seal; • Application within the organization of “direct supervision” as defined in the Act; and • Documented field reviews of projects during implementation or construction.

APEGBC’s Organizational Quality Management (OQM) program is aimed at fostering and improving the quality management

of professional engineering and professional geoscience activities at an organizational level.

The OQM program advances QualificationBased Selection and standardizes, across an organization, the implementation of policies and procedures that are consistent with the quality management requirements stated in the Engineers and Geoscientists Act. By advancing the use of professional risk management and quality assurance programs in organizations that provide products or services requiring the application of professional engineering or geoscience, the association is taking proactive steps to

The OQM program is intended to foster high standards of quality management in professional practice… more effectively deliver on its primary mandate to uphold and protect the public interest in the practice of professional engineering and the practice of professional geoscience.

Jon Perry, P.Eng., a senior project manager for Ledcor Construction, and member of the OQM Committee, speaks to the benefits of the program for the construction industry: “For those firms that employ professional engineers and/or geoscientists to self-perform design services, the OQM offers a value-added element. Since excellence of construction is of-

ten a function of the quality of design it follows, the construction quality will benefit as well.”

Under the OQM program being developed, APEGBC will issue an OQM certification to participating organizations that voluntarily implement policies and procedures consistent with the quality management requirements of the Act and bylaws of the association, or adapt existing in-house policies and procedures to align with these requirements. Participating organizations will have a number of options to achieve certification.

The OQM program is intended to foster high standards of quality management in professional practice and to help build consistency throughout an organization’s operations.

It will assist organizations in providing direct support to their employees who are APEGBC members or licensees so that they can better meet their quality management requirements under the Act and bylaws; and will make it easier to educate Engineers-in-Training (EIT) and Geoscientists-in-Training (GIT) about these requirements.

As the program is voluntary, it will have no ability to restrict an organization from providing professional engineering or geoscience services.

“Very often we are controlled by mandatory obligations and governed by rules imposed by regulatory authorities”, says Perry. “Here is one instance where a little extra effort in the development of policies and procedures that most firms require anyway should yield significant rewards in terms of the quality of their services and products.”

Perry encourages companies offering professional engineering or geoscience services to seriously consider the merits of adopting the association’s OQM certification process once it becomes available: “I believe OQM certification will eventually become a preference in the selection criteria for organizations offering engineering and geoscience products and services.

The ability to market your construction firm as being OQM certified should provide a competitive advantage.”

The OQM committee is currently leading the drafting of the OQM program manual. Before being finalized this fall, the draft manual will undergo an extensive review process. Additional information will be made available as the program develops. In the near-future, this self-funded program will be available on a voluntary basis to all organizations providing professional engineering or geoscience services.

Gilbert Larocque, CD, P.Eng., LLB, is the associate director, professional practice at APEGBC. For more information on the OQM program please email oqm@apeg.bc.ca.

July/August 2011

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Skills Training

Raising the Bar

The Professional Builders’ Institute (PBI) has been established to raise the bar of professionalism in the residential construction industry.

By Stephen Torrence

I

n response to the residential construction industry’s continued desire to enhance professionalism in the sector, the province through the Homeowner Protection Office (HPO) established a collaborative process with the residential construction industry to develop a new system of prescribed qualifications for licensees under the Homeowner Protection Act. An industry task group (The Main Task Group) was charged with developing recommendations for a new system of qualifications for licensees which includes core competencies for different categories of licenses, educational benchmarks, training programs and professional development requirements.

The Main Task Group, in October 2008, recommended creating an independent body for the purpose of assisting government with the implementation and on-going review of prescribed qualifications required for licensed builders who build or sell 1-4 unit residential buildings. In addition this organization would play a role in the delivery of services to builders as they establish their personal qualifications. As a result, the Professional Builders Institute (PBI) was created in the fall of 2010.

The Professional Builders’ Institute (PBI) was formed in anticipation of steps being taken to develop a system of prescribed education, training and experience benchmarks as a condition of obtaining and maintaining a residential builder license in British Columbia. The PBI will:

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• work with HPO to create processes in order to implement the proposed new prescribed qualifications for licensing ; • work with HPO to establish benchmarks that provide detail to the prescribed qualifications; • provide an accreditation service to education and training providers who wish to offer builders programs that will meet the benchmarks; • provide a certificate program to builders that will meet the prescribed qualifications for builder licensing ; • provide and administer a Continuing Professional Development certification that will meet the proposed requirements for builders to renew their HPO license; • provide and administer a Prior Learning Assessment and Recognition Program for new applicants seeking to establish their credentials through prior experience and education.

The province, through a Homeowner Protection Act regulation, will set any changes to the requirements for residential builder licensing. These changes will apply to all licensed residential builders wanting to build new small residential buildings in the province of British Columbia. Currently there are more than 5,000 licensed residential builders in the province — the majority of which build single family dwell-

ings and small residential buildings under Part 9 of the BC Building Code. Residential builders are required under the Homeowner Protection Act and regulations to obtain a residential builder license with the Homeowner Protection Office in order to obtain a building permit or commence construction of new homes built for sale in British Columbia. The anticipated Homeowner Protection Act regulations will provide for appropriate lead time before the new license requirements are in force. This lead time will allow licensed residential builders and new entrants to be advised of the new requirements and prepare for any education and training that might be necessary to obtain and maintain a license in the future.

The PBI, in collaboration with the HPO, will establish benchmarks for the education, training and experience needed by a new applicant to satisfy the prescribed qualifications. In the case of renewal applicants there will be a description of the education, training, activities and experience which make up the CPD process which will demonstrate that the builder has met the prescribed condition of CPD. Accreditation from the PBI will allow organizations offering education and training for the residential construction industry to have its courses and programs count toward requirements for minimum qualifications for licensed residential builders.

Once the anticipated requirements for minimum qualifications are set by government, certification from the PBI will provide a builder with the needed written proof that they have successfully achieved the education, training and experience needed to obtain and maintain a residential builder license in the province of British Columbia. This certification will form part of the application for a Homeowner Protection Office residential builder license.

Stephen Torrence is the executive director of the PBI and was recently chosen as one of the Twenty Most Influential People in Residential Construction. For more information on the Professional Builders’ Institute of BC visit our website at www.pbibc.ca or follow us Twitter @ PBIBCtwitr. To be put on our email list to receive information directly to your inbox or if you have specific questions feel free to email us at info@pbibc.ca.

Special Advertising Feature

Safety is Good Business — What Owner’s Need to Know

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This course enables decision makers in an organization to take charge usiness owners, senior managers and corporate health and safety professionals can make a huge difference in the health and of their health and safety management and to make a big difference — to safety of workers, and in doing so the success of their business. the bottom line of their business through improved health and safety.

Not only is safety good business but it’s the law. Bill C-45 is federal legSo what do they need to know? islation that amended the Canadian Criminal We know that good owners already take Code and became law on March 31, 2004. It imsteps to make sure their workers are safe. Now Everybody’s busy…. poses criminal liability on organizations and its B.C.’s construction employers have access to the Owner’s Orientation and other health and so often times people representatives for negligence (22.1) and other safety programs through BC Construction see health and safety offences (22.2).Section 217.1 states “Everyone who undertakes, or has the authority, to direct Safety Alliance (BCCSA). The Owner’s Orienas slowing them how another person does work or performs a tation course provides a full understanding of task is under a legal duty to take reasonable steps health and safety costs; what safety incidents down and one more to prevent bodily harm to that person, or any and illness can cost an organization, how to thing to do other person, arising from that work or task.” control WorkSafeBC costs; and why there is a Also, according to section 3.3 of the Workneed to invest in safety and wellness.

As an owner of a business there is a lot to learn. Mike McKenna, execu- ers Compensation Act an occupational health and safety program is retive director of BCCSA should know. Prior to joining the BCCSA, he was quired for a workplace that has a moderate or high risk of injury. For construction employers this means they have a legal obligation to have a a part owner of a private rehab company called OrionHealth.

Part of the challenge in promoting health and safety is complacency health and safety program in place to protect their workers.

BCCSA is B.C.’s one-stop shop for construction safety information; and the perception of being ‘less productive’. “Everybody’s busy….so often times people see health and safety as slowing them down and one providing construction employers and workers with reimbursable safemore thing to do,” says McKenna. “We want to overcome that chal- ty training, resources and information for all things safety.

Working in partnership with WorkSafeBC, BCCSA provides health lenge by trying to provide services that are easy to access — that are and safety programs to more than 32,000 construction employers and easy to implement.”

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Skills Training

Criminal Record Barriers

Criminal record checks are a major barrier in the recruitment process when it comes to hiring skilled labourers. By Ainsley Muller

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hen the market crashed in 2008, construction projects ground to a halt, resulting in mass layoffs.

About 2.1 million jobs were lost in the manufacturing industry alone — a whopping 15.1 per cent of the market sector.

These days, prospects are decidedly brighter.

According to the Construction Sector Council (CSC), since the recession, rising incomes and low interest rates have supported a steady stream of construction projects, and a recovery in commodity prices has stimulated mining, pipeline and port expansions. Add to that the substantial growth in residential construction and the increased government investment in the non-residential sector, and the future starts to look rosy.

In 2010 alone construction employed more than 824,000 tradespeople in Canada — almost 50,000 jobs up from 2009. Last year, the construction industry also pumped $130 billion into Canada’s economy and all manufacturing operations, like production, warehousing and shipping, are expected to increase steadily in Canada over the coming years.

For job searchers this means increased opportunities, especially with a flood of baby boomers retiring. But businesses need to make sure they handle their increasing need for labour properly, or the threat of a labour shortage will loom.

In this hiring binge, a large group of potential employees is being overlooked, to the detriment of the construction industry — job applicants with criminal records.

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July/August 2011

When hiring resumed after the recession, criminal record checks became the norm and now highly qualified and trustworthy employees are passed over because they have criminal records — often because of mistakes they made long ago. Now many of these skilled individuals can’t get jobs, earn livings, or support their families, all because their applications landed in the “no” pile without a second thought from companies.

Businesses that are hiring need to educate themselves on what it means if an applicant has a criminal record.

And it’s not just those new to the construction industry who are having trouble. Many longtime employees were left unable to get jobs after the new screening measures were implemented, even if they had proven their trustworthiness throughout their construction career.

Businesses that are hiring need to educate themselves on what it means if an applicant has a criminal record. The truth is that 10 per cent of Canadians have one — that’s more than four million people — and the most common

offences are mostly minor ones that don’t involve any serious injury.

With that many people who have criminal records applying for jobs, the new screening policy not only hurts individuals, it hurts businesses.

Because demand for workers is increasing, the knee-jerk “not hired” response to a job applicant with a criminal record has become a major stumbling block for businesses.

It means that employers won’t have enough skilled labourers to complete construction projects and keep up with demand — all because they don’t understand what a criminal record means.

Instead of making a snap judgement about a job applicant, try these helpful suggestions from the HR guide to dealing with criminal records: Check past work experience: An applicant’s reference letters and length of employment at a company prove loyalty and employee trust.

Communicate with the potential employee: Often these crimes are minor offenses and were committed when the person was young and not clearly thinking about the consequences of their actions.

Find out the particulars: Look into what type of offense was committed and when; minor criminal offenses include those that break the law, but are not necessarily done so in a dangerous or harmful manner.

Make a job offer subject to receiving a pardon: If a current or potential employee has a criminal record, suggest that they apply for a pardon, which would erase their criminal record.

Both skilled workers with criminal records and the businesses that hire them benefit from keeping an open mind about the criminal record issue. The fact that at least one in four of most company’s existing employees have a criminal record may help employers look at this issue differently. Gainful employment can help individuals with criminal records re-integrate into society and have meaningful, productive lives beyond their convictions, and most who obtain pardons do not re-offend.

Businesses stand to gain hard-working, experienced team members.

Ainsley Muller is an expert in criminal records and issues they create for employment in the manufacturing industry. Ainsley is a spokesperson from Express Pardons Canada, a company that provides the fastest pardons in Canada. With extensive knowledge of the pardon process, the Express Pardons team delivers a rapid application process with a money-back guarantee.

Skills Training

Gold Seal Project

SAIT’s Trades and Technology Complex honoured with prestigious designation.

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AIT Polytechnic’s new Trades and Technology Complex has earned the designation as a Gold Seal Project — making it the first educational facility to receive the distinction in Alberta.

The 740,000 square foot project is comprised of three buildings which will be able to accommodate 8,100 additional full time and part time students each year. All the construction related programs offered at SAIT will be accredited Gold Seal courses including the new four year Bachelor of Science program in Construction Project Management.

With the looming labour shortage, the construction industry will need more than 40,000 new workers over the next decade in Alberta alone and this facility will assist in the recruitment of those individuals.

SAIT partnered with the Calgary Construction Association (CCA) and PCL Construction Management to promote construction excellence in building the facility. The Gold Seal designation demonstrates that the project is recognized as having achieved a national standard of competency. The $445 million facility will be completed in 2012.

At the July celebration of the designation, Rob Otway, district manager of PCL Construction Management said, “It is important to us to raise awareness of the Gold Seal Program. The Gold Seal Program is an example of continuous improvement which takes ourselves to another level of education and understanding, and collectively improves our industry.”

Twenty individuals were presented with Gold Seal Certificates. The CCA also presented SAIT with a cheque for $25,000 which will be used to purchase new learning tools and equipment for the facility.

Under the Gold Seal Project initiative, project managers, superintendents, estimators etc are encouraged to achieve Gold Seal certification.

The goal is to have all eligible personnel certified on the project. Gold Seal Projects showcase the benefits of certification and promotes and recognizes construction management skills within the industry.

The Canadian Construction Association (CCA) Gold Seal Certification Program is a national program for construction project managers, superintendents, estimators, owners’ project managers and safety co-ordinators.

Gold Seal certification is based on the candidate’s education, experience and their ability to satisfy the standards of the program.

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Design Corner

Bottom Line Design: How Your Business Can Benefit

By Jim Toy

This space addresses flexibility, environmental and energy considerations.

It encourages a collaborative team environment and projects the proper image for the company to clients.

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or many of us starting, growing and maintaining a business, success is only measured by the net profit or loss on company financial statements.

There are many factors that contribute to a company’s well being — a focused approach, effective management, market presence, technology and talent, to name a few. In an increasingly competitive world, a strategic plan is a must for sustaining any business operation.

Having a properly designed space should be part of that strategy.

Often overlooked or deemed a non-essential luxury by business owners, a reputable, qualified design professional can help improve overall performance and profitability in any company, small or large. Many of the issues challenging profitability or in some cases a company’s survival can be resolved in part through better designed built environments.

Typically, a company’s largest investment is in human resources. However, a poorly designed work environment can compromise productivity, increase employee workplace dissatisfaction, staff turnover and absenteeism. Ill conceived and shoddily built commercial spaces can project the wrong image to your target audience — clients and customers.

Too often, the business community fails to see the cost benefits of incorporating good design

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July/August 2011

into their strategic planning. A design professional can demonstrate how minimal improvements to any premises can bolster revenues by fostering a healthier work culture, job satisfaction and pride of place. Properly planned and quality controlled design can add to the overall bottom line by demonstrating value, stewardship, agility, and economic and social responsibility to both staff and customers alike.

Design professionals, like many other consultants, provide and share knowledge, expertise, and ongoing support to entrepreneurs with a comprehensive approach to business. It’s no secret that energy and space efficient design reduces operating costs. Smarter design and construction methods concentrate on maximizing use of space and minimizing footprints.

Controlled and sustainable growth can be more readily reached with a multi functional, creative business plan that addresses present and future needs.

Embracing creative design concepts can help capture additional returns by identifying opportunities that would not be possible with a cookie cutter, mundane and generic approach to built environments. Successful companies promote innovation; by integrating inventive and well designed spaces with a balanced, structured and forward thinking business strategy, success on every level becomes possible.

Before

Jim Toy is principal of False Creek Design Group, the largest independent interior design firm in Vancouver, offering a comprehensive range of services for real estate and commercial clients. He is also a past president of Interior Designers Institute of B.C.

Legal File

Staying in the Game

Early Relief For Compliant Bidders By Tyler Galbraith

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ypically, it is the owner who controls the tender process and prepares the tender documents, meaning it is the owner who sets the rules of the game. As it is the owner who sets the rules and controls the process, the courts have attempted to impose obligations on owners to ensure that the process is fair.

To that end, the courts have taken the position that they will protect the integrity of the bidding process where under the law of contract it is possible so to do. There is, however, only so much that the law of contract can do to protect that process.

One step the courts have taken in order to protect the integrity of the tender process is to imply into bid contracts two duties on owners; namely, to accept only compliant bids and to treat all compliant bidders fairly and equally in the process. However, under the law of contract the extent of the obligations the courts are able to imply into the bid contract to ensure the process is fair can be limited or completely negated by the express terms of the tender documents prepared by the owner. The courts have consistently held terms cannot be implied, even terms relating to procedural fairness, in the face of clear and unambiguous provisions that expressly state an inconsistent intent.

Tender documents prepared by sophisticated owners usually contain privilege clauses (which provide that the owner need not accept the lowest bid and may look to other factors besides price in assessing value), discretion clauses (which allow owners to waive irregularities and potentially accept non-compliant bids) and limitation or exclu-

sion of liability clauses (which can insulate owners from liability or damages). If these clauses are clear and unambiguous, they can effectively permit an owner to contract out of the obligations the courts have implied in bid contracts to protect the integrity of the tender process.

Notably, the Supreme Court of Canada recently held that liability for breach of the duty to treat each compliant bidder fairly and equal-

Compliant bidders are left with diminishing legal options in the face of clearly worded privilege, discretion and exclusion clauses. ly, which is the most fundamental protection for compliant bidders in the tender process, can be excluded by a clearly worded exclusion of liability clause.

Compliant bidders are left with diminishing legal options in the face of clearly worded privilege, discretion and exclusion clauses. The traditional approach of suing owners for breach of their obligations under the bid contract after

the construction contract has been awarded may no longer be practical or feasible depending on the express terms of the bid contract. In these circumstances, what can an aggrieved compliant bidder do?

One option is to seek declaratory relief from the court before the owner awards the construction contract.

Owners have historically sought declarations from the court on bid compliance issues before awarding the construction contract in order to settle such matters before award, thereby avoiding subsequent lawsuits from aggrieved compliant bidders.

A compliant bidder also has the option of applying to court to seek a declaration that its bid is compliant and that the owner must consider its bid on its merits before awarding the construction contract. This type of application is appropriate in circumstances where an owner is considering disqualifying, or has already disqualified, a compliant bidder’s bid as being non-compliant, but has not yet awarded the construction contract. This type of application must be brought quickly, because once the construction contract has been awarded, the express terms of the bid contract may insulate the owner from liability or damages for wrongfully disqualifying a compliant bidder.

Of course there are risks involved. For example, the bid may actually be found non-compliant, meaning it most likely will not be accepted in circumstances where the owner is only considering disqualification for non-compliance.

Or, despite a favourable ruling on compliance, the owner may not accept the bid for a number of reasons including, the bid is not low, all bids are over budget, the project is not going ahead or the owner is taking a “nuanced view” of cost.

A compliance application gives the court the ability to (partially) maintain the integrity of the tender process through the law of contract where it would not otherwise have been able to do so. It is another tool in an aggrieved compliant bidder’s box and, while a court declaration that a bid is compliant will not guarantee the acceptance of that bid, it should ensure that the bid is considered on its merits. A successful ruling means that the bid remains in the game and capable of acceptance in circumstances where it otherwise would or could have been disqualified as being non-compliant.

Tyler Galbraith is an associate with Jenkins Marzban Logan LLP. Contact him at tgalbraith@jml.ca July/August 2011

construction business

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Legal File

Exclusion Clauses

What owners and contractors should know By Owen Pawson

The Tercon Case In 2010, the Supreme Court of Canada in Tercon Contractors Ltd. v. British Columbia (Ministry of Transportation and Highways), held that a properly drafted exclusion clause in procurement documents can allow contracting authorities to escape liability for acting unfairly during the procurement process. The Tercon decision requires careful consideration by owners when developing procurement documents and by contractors in deciding whether to respond to a request for proposals (RFP) or tender call involving an exclusion clause. Consultants should also pay close attention to this issue — especially if they are developing documents or advising a client during the procurement phase of a project.

The Tercon case involved a procurement process to select a design-build contractor to design and construct a stretch of highway in British Columbia. The winning proposal was submitted by a joint venture comprised of two companies, but one of them had not participated in the initial Request for Qualifications that had shortlisted proponents to submit proposals pursuant to a subsequent RFP. Tercon Contractors Ltd. (“Tercon”) submitted the second ranked proposal and subsequently made a claim against the Ministry of Transportation and Highways (the “Ministry”) asserting that the selected proponent had not complied with the RFP which stipulated that only shortlisted proponents could submit a proposal.

In Tercon, the Court upheld lower court findings that the Ministry had been unfair in its dealings with the proponents and that the selected proponent was not eligible to submit a proposal in the RFP process. The issue for the Court was whether the Ministry could avoid paying damages based on an exclusion clause in the RFP. In the circumstances and based on the wording, the Court found that the clause did not apply to the specific facts and 42 construction business

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permitted recovery by Tercon for its loss of profits.

However, the decision of the Court was close and split 5-4 in finding that the exclusion clause in the Tercon RFP was not broad enough to exclude recovery for the unfair actions of the Ministry.

The majority of the Court accepted that owners can rely on exclusion clauses in procurement documents. However, the Court also construed the clause narrowly. Accordingly, the majority of the Court found that “participating in this RFP” as stated in the exclusion clause meant that the clause could only apply if the Ministry had adhered to the RFP process which, in this case, it had not because it had allowed an ineligible company to submit a proposal. The minority on the other hand sided with the B.C. Court of Appeal in finding that Tercon, being a major contractor, had the bargaining power to decide whether or not to enter the RFP process given the existence of the exclusion clause and therefore should not be awarded any damages.

Not surprisingly, the decision in Tercon was based on the fundamental principle that there should be fairness in the dealings between the owner and proponents during a procurement process. It is important to note the general acceptance by the Court that exclusion clauses can be valid and binding in procurement documents. The Court did, however, find that an exclusion clause would not apply if a bidder could prove that enforcing the clause would be unconscionable or that there was a public policy reason to ignore the clause.

Owners Although Tercon demonstrated the Court’s willingness to enforce a properly drafted exclusion clause, owners should not be too anxious to include one without a careful consideration of the implications. For example, potential bidders may decide not to participate in a procurement process where an owner has tried to insulate itself from its own unfair actions. This may have the effect of

reducing the number of potential bidders and, of course, a narrowed pool of bidders will not serve the ultimate goal of competitive bidding.

The owner’s procurement reputation is another issue to consider, especially for those owners who regularly procure goods or services through competitive processes. A reputation for running fair, competitive, and transparent procurement processes is invaluable for public owners. An exclusion clause that attempts to absolve the owner from the consequences of any unfair treatment of bidders will not bolster that reputation. Finally, owners should consider the possibility that bidders will include risk premiums in their bids if an exclusion clause is included.

Instead of including an exclusion clause, an owner may wish to consider other more balanced approaches. For example, the owner could introduce a clause that limits any damage award to an amount equal to the cost of bid preparation. In addition an owner could include a dispute resolution mechanism to resolve any claims arising out of the procurement process and thereby avoid recourse to the courts. This option would not only reduce costs of resolving a procurement dispute but it could also avoid unnecessary publicity.

Contractors Contractors should exercise caution if faced with a procurement document that contains a Tercon style exclusion clause. Contractors will have to decide whether they will bear that risk or whether they should add a premium to their bid prices. In making that assessment, contractors should consider a number of factors including: the marketplace (e.g., are crews already busy, are there other projects to bid upon); and, the reputation of the owner (is there a history of fair dealing with bidders). Including a risk premium for an exclusion clause must be tempered with the understanding that, typically, the lowest bid will be selected by the owner and, accordingly, an additional premium to address the risk of an exclusion clause may mean the difference between being awarded the project or not.

In summary, based on the Tercon decision, both owners and contractors should carefully consider their position regarding exclusion clauses. In addition, consultants are often involved in advising or assisting a client in developing procurement documents and should be cautious in their advice to ensure that their clients are properly informed about the advantages and disadvantages of exclusion clauses. Indeed, this is one area of procurement where legal assistance would be valuable.

Owen Pawson is a partner at Miller Thomson LLP. This article was prepared with the assistance of Hassan Ahmad, articled student.

For furthering information, contact Owen at opawson@millerthomson.com.

Legal File

Planning for Success in Litigation

By Curtis E. Marble Keep all contracts for the project All written contracts, no matter how informal, should be stored in a safe and central place.

While there is a general practice that companies keep the final, signed contract in a secure location, this practice is often overlooked for materials such as emails that may serve to vary the final contract, explain its terms or create a new agreement. This might happen when a vendor emails a project owner for clarification on a particular aspect of a project or where the parties agree, by email or letter, to vary some aspect of the primary contract.

Although courts are sometimes willing to imply contracts from the behaviour of the parties, it is more difficult (and more expensive in terms of legal fees) to prove the existence of a contract from behaviour. It is normally most efficient to rely on written records.

L

arge construction projects are fertile ground for contractual disputes. While the majority of disputes are resolved between the parties without recourse to the courts, major disputes incapable of consensual resolution do arise. The key to being successful in these disputes and keeping your litigation costs down lies in the steps your company take to prepare, even before the ink dries on the contract.

These steps include agreeing with the other contractual parties on how disputes will be dealt with before they ever reach the courts, and ensuring that your company can easily and efficiently produce the information needed for any dispute resolution process.

Include an arbitration clause in your contract Increasingly, construction disputes are staying out of the courts and are resolved through, among other methods, arbitration. While not a cure-all for every commercial dispute, arbitration tends to be cheaper and faster than traditional litigation.

Arbitration affords parties the ability to choose the decision maker and dictate the length and breadth of the discovery process. The combination of being able to pick an arbitrator familiar with construction projects and the ability to shorten discovery means disputes tend to be resolved faster and more economically than through the courts.

Make and keep detailed notes Frequently, disputes arise over the meaning of terms in a contract. Issues might include the price of a project, the payment of a bonus or responsibility for deficiencies. While the nego-

tiators may have addressed such matters in their meetings, the agreements reached are sometimes not expressed clearly in the executed contract.

While most deals are negotiated by executives or business development departments, the contract is often drafted by lawyers.

To help protect your company in such disputes and make document discovery easier,

The key to being successful in… disputes…lies in the steps your company take to prepare, even before the ink dries on the contract. notes and correspondence made during contract negotiations should be preserved. Although the courts will not generally admit such materials as evidence, in some cases they have been used to assist the court in interpreting ambiguous contracts. In Thiel v.

Perepelitza, [1982] A.J. No. 725, the Alberta Court of Appeal stated that “…evidence of the surrounding circumstances [of the contract] is always admissible to assist the court in determining the true agreement of the parties.”

These surrounding circumstances may be reflected in notes and correspondence made during negotiations.

Develop a policy for the retention and organization of operational records While the project is ongoing, care should be taken to organize and store both hard copy and electronic documents related to the project. Developing a clear document retention policy outlining how this will be accomplished, and how long documents will be saved, can help protect against an adverse inference being made against your company if a document has been deleted or destroyed in accordance with the policy. All companies, regardless of size, can organize and save both hard copy and electronic documents. In large companies this could mean the use of sophisticated software to electronically track and save documents by project number. In smaller companies, this could mean learning how to use simple and inexpensive solutions such as folders in Outlook to manage emails.

Making this effort will dramatically reduce the cost for staff time and lawyers’ fees if it becomes necessary to find and review project documents for litigation or arbitration.

Potentially useful operational records include copies of construction plans, studies, project approvals from relevant regulators, invoices, and correspondence.

While many of these tips seem mundane, it is attention to organizational details dealt with early and effectively that will help reduce your costs and increase your chance of success in a dispute.

Curtis E. Marble is a litigation associate in McCarthy Tétrault LLP’s Calgary office, and practices in the areas of arbitration and commercial litigation. Contact him at cmarble@mccarthy.ca.

The views expressed in this article are those of the author and do not necessarily reflect the views of McCarthy Tétrault LLP. July/August 2011

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VRCA

2011 VRCA Awards of Excellence Silver Winners Gold winners in each category will be announced at the awards dinner on October 19 at the Vancouver Convention Centre West. Look for full coverage of all the winners in our November/December issue.

Sparking Hill Resort

Brighouse Elementary

BC Hydro

General Contractor Over $40 Million

Electrical Contractor up to $2 Million

Mechanical Contractor up to $3 Million

Canada Place Sail Replacement Houle Electric Ltd.

The Garage Paragon Mechanical Ltd.

Sparkling Hill Resort PCL Constructors Westcoast Inc.

BC Hydro Field Operations Facility Houle Electric Ltd.

Garibaldi Secondary School APCO Plumbing & Heating

Poirier Sport and Leisure Complex TASK Construction Management

Mahony & Sons Public House Mustang Electric

Samuel Brighouse Elementary School Jeda Mechanical Ltd.

The Jim Pattison Outpatient and Surgery Centre Bird Construction Company

Robert H.N. Ho Research Centre

Jim Pattison Outpatient Care

Mechanical Over $3 Million Royal Jubilee Hospital — Patient Care Centre Keith Plumbing & Heating Co. Ltd The Jim Pattison Outpatient Care and Surgery Centre Daryl-Evans Mechanical Ltd.

General Contractor $15 — ­­ 40 Million

Electrical Contractor Over $2 Million

Penticton Aquatic Centre Stuart Olson Dominion Construction Ltd.

Wesbrook Residential Tower Bridge Electric Corp.

Robert H.N. Ho Research Centre Scott Construction Ltd.

Jim Pattison Outpatient Care and Surgery Centre Nightingale Electric Ltd.

TRU, House of Learning Vanbots (A division of Carillion Pacific Construction)

UBC Biosciences Renew Western Pacific Enterprises

UBC Biosciences Renew Division 15 Mechanical

Chairman’s Trade Awards YMCA / Patina Spectrum Painting Coast Meridian Overpass and Golden Ears Bridge LMS Steel Reinforcing Steel Group

General Contractor up to 15 Million

President’s Trade Awards

Mahony & Sons Public House Manley Design & Construction Management

Poirier Sport & Leisure Complex Whitewater Concrete

Klahoose New Relationship Building / Multi- Centre Cortes Island Ledcor Construction Ltd

Robert H.N. Ho Research Centre Concept Aluminum Products

Sparkling Hill Resort M & K Ready Mix Ltd.

Sparkling Hill Resort CN Architectural Millwork and Construction Inc.

Klahoose First Nations New Relationship / MultiCentre Holdfast Metalworks

Nanaimo Cruise Ship Terminal Vancouver Pile Driving Ltd

44 construction business

July/August 2011

The Jim Pattison Outpatient Care and Surgery Centre Flynn Canada

Manufacturer & Supplier

2011 VRCA

Awards of Excellence

OFFICIAL PUBLICATION Nov/Dec 2011 Construction Business ISSUE HIGHLIGHTS: • Complete coverage of all Award winners — Silver and Gold plus Individual Awards • Interviews with the VRCA • Full colour photos of the Award-winning projects • Distribution to over 3000 general contractors, developers, architects and builders

The November/December 2011 issue of Construction Business is the official publication of the 2011 VRCA Awards of Excellence.

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Industry News

Advertiser Listings

All West Electric BCCA BCCSA BC Hydro BFL Canada Insurance Services Inc Buildex Flynn Glotman Simpson ICBA Jenkins Marzban Logan Langley Concrete Group Levelton LMS Group McElhanney Metrocan Nightingale RCABC Reliable Equipment Singleton Urquhart Task Construction Management Ventana Wales McLelland Western One Wilson M Beck Insurance WorkSafe BC

Worthy Cause LMS Reinforcing Steel Group held its 11th annual charity golf tournament in July at the Nicklaus North Golf Course in Whistler. The industry classic brings together customers, suppliers, volunteers, sponsors and partners for some fun and to support the Canucks Place Children’s Hospice.

This year’s themed tournament was “Boob Tube/Classic TV”.

Reverse Draw grand prize winner Jason Green donated his win back to Canuck Place Children’s Hospice. The winners were a foursome from Hy’s Steakhouse in Whistler.

The theme for the 2012 tournament will be Christmas in July.

Interchange Opens The $21.9 million Anthony Henday Drive interchange project, which connects the ring road with Lessard Road in Edmonton’s West end, opened in August.

Construction on the interchange began in 2009. It is the first of five new interchanges that will open on the southwest portion of the Anthony Henday Drive ring road.

The new interchange eliminates a set of lights on Anthony Henday Drive’s main line and allows traffic to flow freely through the intersection with Lessard Road.

46 construction business

July/August 2011

Multi-Family LEED Adera Capital Corp has started construction of a new boutique townhome development in North Vancouver: Seven35. The 60 stacked townhomes are under construction at 735 West 15th Street on North Vancouver’s Marine Drive. Designed by Integra Architecture, it will be the first multi-family LEED for Homes Platinum development in Canada. The project will also be certified as BuiltGreen Gold which Adera believes will be the first double certification in Canada as well. Seven35 will also have one of the first installations of a ‘building size’ wastewater heat recovery system.

15 OBC 35 11 4 40/41 19 17 7 9 32 18 23 25 18 21 IBC 37 10 9 13 21 20 IFC 5

DIALOG Awarded DIALOG was awarded the 2011 Excellence in Innovation in Civil Engineering Award from the Canadian Society for Civil Engineering (CSCE).

This annual award recognizes outstanding innovation whereby the application of an idea in practice has a significant beneficial impact on the prosperity and well-being of society. The award recognizes excellence in innovation, research, development and application of a new technology; unique adaptation of existing technology; new project delivery methods; new design processes; new details; or the development of new methods related to any field of civil engineering. DIALOG’s submission entitled “Ultra High Performance Concrete UHPC in Architectural Cladding” responds to the increased demand for sustainable solutions and ongoing advancements in construction materials technology.

Ferrari Passes Alberta architect Art Ferrari, one of the principals of Lethbridge, Alberta based firm Ferrari Westwood Babits Architects, passed away on Saturday, July 30, 2011. Ferrari was 63 years old.

Ferrari served on the Lethbridge College Alumni Advisory Council, the U of L Senate, the U of L Board of Governors, two terms as the President of the U of L Alumni Association and was involved in numerous community groups.

FWBA, founded in 1928, is the oldest continuing architectural practice in Western Canada. The firm recently expanded with a Calgary office.

Ventana Selected Burnaby, BC’s Ventana Construction Corporation has been chosen to build the new Mountain Equipment Co-op store in North Vancouver. “It’s a great stamp of approval for our work in sustainable design and construction to be chosen by a company like MEC to build their new store,” said John Sharp, president of Ventana. This is one of five green design and construction projects currently underway for Ventana.

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Vancouver Regional Construction Association

Southern Interior Construction Association