September/October 2020 Vol. 17 No.4
CLAYTON COMMUNITY CENTRE PM 40063056
OPEN SHOP | WOOD | SKILLS TRAINING
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Inside September/October 2020 | Vol. 17 No. 4
06 Feature Project As North America’s first Passive House community centre, Surrey’s Clayton Community Centre is raising the bar for sustainability and architectural design.
PUBLISHER
MANAGING EDITOR CONTRIBUTING WRITERS
B.C./ALBERTA SALES
Dan Gnocato dang@mediaedge.ca Cheryl Mah Jordan Bateman Andrew Chad Rebecca Cleary Ilana Danzig Chris Gardner Wayne Hand Paul de Jong Michael B. Morgan Julie O’Connell Mark Robertson Dan Gnocato Tel: 604.549.4521
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Industry Focus 10 Open Shop Construction Finds Solutions to COVID Recovering From the Pandemic High Demand for Training
14 Skills Training Supporting Indigenous Careers Time is Right for a Construction Career Rethinking Trades Training
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17 Wood Expanding CLT Usage Demystifying Tall Wood Buildings A Living Laboratory
Departments 04 Message from the Editor 20 The Legal File Statutory Trust Claims Lien Talk
22 Industry News
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Cover Photo The innovative Clayton Community Centre is set to open in 2021.
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 10 & 11, 2021
NOVEMBER 30-DECEMBER 4, 2020
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Editor’s Note
The New Normal
A
s the pandemic continues to restrict and disrupt our daily lives, everyone has been learning to adapt — some better than others — to the new normal. The slow reopening of businesses and facilities has offered some sense of normalcy, but brings with it many challenges. Schools reopening this fall has meant another big adjustment and facing more challenges. As a parent, keeping track of all the health and safety guidelines for returning to school and other related activities has been overwhelming. Online learning is now a new reality from elementary and post-secondary to trades training. With hands-on instructions required for various trades such as welding and electrical,
COVID-19 is a unique challenge for trade instructors. The BCIT School of Construction and the Environment has stepped up to the challenge, managing to adapt its programs to meet safety requirements to allow limited apprenticeship trades back in the shops. Skilled trades will be key to the future health of the construction industry and the pandemic is emphasizing just how important trades are — with construction one of the few sectors deemed an “essential service” at the start of the crisis. Read more about skills training inside this issue. This is also our annual open shop issue and not surprisingly, the focus is on COVID impacts and how the industry is responding. In our wood feature,
read about Fast & Epp’s new Vancouver office, use of CLT and advantages of tall wood buildings. For our project, we take a look at the new Clayton Community Centre in Surrey. It is the first commercial Passive House project of its kind in North America, raising the bar for future construction. We continue to provide industry related coverage of COVID-19 online, go to: www.reminetwork.com/tags/covid-19/.
Cheryl Mah Managing Editor
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September/October 2020
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Feature Project
RAISING
THE BAR BY CHERYL MAH
The ambitious Clayton Community Centre in Surrey is set to offer users a whole new experience in community services. As North America’s first Passive House community centre as well as Canada’s largest Passive House facility to date, the centre raises the bar for sustainability, architectural design and programmatic integration. The 76,000-square-foot community centre was designed by HCMA Architecture and Design and features a unique mix of spaces including a branch library, gymnasium, child care facility, art and music studios, several multi-purpose rooms and a community rehearsal hall. A significant steel spiral stairway connects the two floors. 6
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“The design challenge, aside from Passive House, was how to deliver these public and community services in an integrated way and not just co-located,” says Melissa Higgs, HCMA principal, noting the design was in direct response to the varied needs of a rapidly growing and young community. “Integrating all these uses seamlessly was developed in close engagement with distinct client groups.” Construction manager EllisDon broke ground on the project in 2018 with substantial completion achieved on May 15, 2020. At peak of construction, 250 workers were on site. Although COVID-19 hit during construction, project manager Andrew
September/October 2020
Goodbrand reports there were no major impacts because they were nearing completion. EllisDon has worked on a number of cutting edge sustainability projects, but this is their first Passive House. “Clayton Community Centre far exceeds what the industry perceives when we think sustainable building,” says Goodbrand. “I think whenever you can deliver a project that exceeds industry standard, it promotes others to push the envelope even further.” The two-storey structure is a composite of concrete and steel with a dark, custom metal panel cladding and a unique twoway pinwheel glulam roof structure. The
Feature Project
interior of the building makes significant use of wood, both structurally and for aesthetic appeal. According to Higgs, the roof and building envelope draws inspiration from the surrounding forest and mimics a tree canopy through the unique exterior patterning as well as the honeycombed glulam beam interior ceilings. “We tried to imagine what a building would be like as an extension of the forest and focused on spatial qualities such as dappled light coming in from above, so the structural — architectural expression of the building is intended to reflect a tree canopy,”
she says, noting when people enter into the building there is a large unprogrammed space for social gathering that evokes a “clearing in the forest”. Seagate Mass Timber prefabricated and installed the glulam pinwheels and glulam beams of the unique reciprocating frame roof structure. The roof structure was one of the main challenges, according to Goodbrand. “The roof structure was the most time consuming from a logistics standpoint as different parts of the pinwheels were delivered, then assembled onsite in zones before being lifted into place,” he says. “The glulam roof ’s
pinwheel design is one of a kind, requiring full size structural element — glulam connections - mock-ups for testing.” Passive House requirements presented its own challenges, most notably from a quality control management perspective. “There was a heightened focus on quality control. The challenge in execution was ensuring that the Passive House design criteria were taken into account while developing solutions to issues that arose onsite,” says Goodbrand. To ensure everyone was on the same page, EllisDon used large scale mock-ups that incorporated
The honeycombed glulam beam interior ceiling mimics a tree canopy.
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Feature Project
all building envelope and Passive House critical transitions to demonstrate the building features for subtrades. “This helped flush out design and constructability issues before we implemented the work on site,” he says. “Trade education was a big part of pre-construction as many trades weren’t familiar with the requirement or how it affected their scopes.” The goal of Passive House is to create ultraefficient, low energy buildings that maximize occupant comfort, while minimizing operating costs and environmental impact. Certified buildings consume up to 90 per cent less energy than conventional buildings. Higgs stresses Passive House sets a “really high target for getting incredibly low energy use in the building” so early modelling was key to evaluate every variable for energy use. The energy reduction requirement also drove the building’s unique compact form, which effectively minimizes the surface area of the floor, walls, and roof relative to the volume of the building that needs to be heated and cooled. To address the centre’s high internal loads, the use of natural ventilation was necessary to achieve the stringent low energy targets, explains Higgs. Pop-out skylights provide natural daylight and ventilation into the interior spaces. “Finding operable triangular windows that were Passive House certified was a challenge,” she notes. Other features include radiant ceiling heating and cooling panels with balanced heat recovery ventilation, and triple-glazed windows. The innovative use of passive features, along with optimized orientation of the building, reduces the need for mechanical 8
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September/October 2020
Feature Project
cooling to roughly 5 per cent of the year. By meeting Passive House standards, the building also meets the top step of the BC Energy Step Code. “Another big issue was the main entry,” adds Higgs. “To maintain the air tightness of the building, we put in an oversized revolving door. I think we’ll see that more and more in public buildings.” For such a large building, air tightness of the envelope can be challenging but strong collaborative teamwork among all the trades and EllisDon ensured the testing was successful. “Our biggest milestone was passing the full building air tightness test, a key deliverable to Passive House certification,” says Goodbrand.
Higgs says the process required rigorous quality assurance by the construction team. “Passive House requires doing things differently. EllisDon did a fantastic job to achieve an incredibly tight envelope,” she says. Ultimately, Clayton Community Centre demonstrates that environmental performance and high design are achievable in large buildings. “This was a transformative project. I hope it will communicate that design doesn’t have to be complex to achieve Passive House,” says Higgs. Good planning, execution and strong relationships between stakeholders were all keys
to the successful delivery of this project, according to Goodbrand. “Without everyone’s buy in and collaboration, the project would not have been possible. EllisDon is truly humbled to be at the forefront of this innovation,” he says, adding the success of Clayton has led to other projects for targeting Passive House such as the new student residence at University of Victoria. The facility was scheduled to open its doors in 2020, but the COVID-19 pandemic has delayed that opening to early 2021 so residents will have to wait a bit longer to experience the new spaces.
suPPLyInG PrODuCTs COmmunITIes are BuILT On.
The Langley Concrete Group has implemented policies and operating procedures to protect our employees and customers, during the COVID-19 Pandemic. We continue to manufacture and supply critical infrastructure products that British Columbians rely on, while supporting the BC economy.
September/October 2020
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Open Shop
Construction finds solutions to COVID BY JORDAN BATEMAN
C
onstruction companies are used to overcoming challenges on projects, and this resiliency was demonstrated in spades as contractors confronted the COVID-19 pandemic. Open shop construction companies led the way in British Columbia in adapting safer work practices, increasing hand hygiene, and staying at work during the months-long shutdown of other industries. Working with Dr. Bonnie Henry and the Provincial Health Office (PHO), construction companies pivoted to the new reality quickly and effectively, and were deemed an essential service and helped keep paycheques f lowing and our economy moving. The success of the construction industry became a model for other sectors in their reopening. “The construction industry has been doing phenomenally well — adapting, switching and working with the health authorities to implement the new health and safety rules,” said Leonard Kerkhoff, president of Chilliwack’s Kerkhoff Construction. By late August, WorkSafeBC had adjudicated just one COVID-19 claim in the construction industry. This is a remarkable commitment to safety by construction contractors and workers in
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a sector which employs nearly a quarter million British Columbians. “The proof of our success is in the WorkSafe numbers, where only one case of COVID-19 can be linked to a construction job site,” said Chris Gardner, ICBA president. “Construction has proven how safe and resilient its people are and how focused they are on protecting each other — the global pandemic reinforced that and showcased what happens on construction job sites every day.” Early in the pandemic, there were fears that construction would be shut down like so many other industries, which would have decimated employers and put tens of thousands of people out of work. Fortunately, a consensus emerged that construction could be done safely, and that stopping work would be catastrophic to both the industry and the wider B.C. economy. Construction contractors quickly collaborated and developed best practices and protocols which helped the PHO craft a framework on how construction could continue, and Dr. Henry’s designation of construction as a permitted activity. Despite this designation, work slowed: ICBA members reported to the association that a significant number of workers, as many as 25 per cent, were staying home “out of an abundance of caution,” due to their personal concerns about
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catching the virus. As protocols came into place and WorkSafeBC inspected sites for up-to-date safety measures, that number quickly fell; by late April, it was 15 per cent; by mid-May, most companies reported that 99 per cent of their workers were on the job. The outstanding, meticulous work construction contractors did to improve sanitation, personal protective equipment, and spacing on their sites, cannot be understated. “Employees came to sites and saw things were safe,” said Gardner. “Fears of infection quickly evaporated when they understood how the industry was taking COVID-19 seriously.” Every construction employer developed a COVID-19 safety plan, deployed signage, and educated their safety/first aid teams on safe work procedures. Larger sites tapped a COVID-19 safety compliance officer to oversee these efforts. Sites now screen all workers and visitors every day — asking about symptoms, recent travel, and exposure to others with COVID-19. Some even do daily temperature checks. Every site records contact information for every person who visits. “Six feet apart,” is the mantra on worksites today. Schedules were revised, work reprioritized, meetings and lunch rooms moved outside, and transportation arrangements adjusted, to keep work contacts down as much as possible.
Open Shop
Some companies mandate masks be worn at all times; others order them when indoors or in close contact with other workers. Sites were split into separate zones when practical in order to again limit contact, staircases became one-way, and hoists were limited to two workers at a time. Sharing of tools — and other common touchpoints such as pens and coffeemakers — was minimized. Hand sanitizer and handwash stations are found throughout work sites, and common surfaces are disinfected regularly. At construction work camps, interactions are limited. “The biggest key to the industry’s success has been the discipline and diligence it takes to meet these high health standards every single hour, every single day, on every single project,” said Gardner. “There are no days off from COVID-19 prevention.” As open shop’s largest construction association, with more than 2,500 members and clients, ICBA also pivoted quickly. The association provided much needed advice and facilitated networking between companies, communicating to the industry what was working. A webpage set up with up-to-the-minute information received thousands of hits. ICBA helped lead the way in advocacy to the provincial government, pushing for policy to keep construction going. ICBA became a member of the B.C. COVID-19 Business Cabinet, generating ideas for all levels of government in managing the pandemic and eventual economic reopening. ICBA’s training department moved online, leveraging its large catalogue of on-demand, online courses, and creating dozens of webinars which attracted thousands of viewers. ICBA’s employee benefits platform returned significant dollars to employers, passing along savings wherever possible, and highlighted allimportant mental health services as British Columbians coped with the lockdown. After closing its office and moving workers to remote locations on March 16, ICBA reopened its doors on June 1 with a set of COVID-19 prevention protocols mirroring the successful work of its members on site. “Designated essential, construction activity largely carried on in this province, and the industry recognized the grave responsibility that represented,” said Gardner. “It operated with a collaborative spirit, a careful adherence to public health guidelines, and a determination to effectively pivot to dramatically different worksite practices. And it continues on.” Jordan Bateman is vice-president, communications, Independent Contractors and Businesses Association.
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September/October 2020
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Open Shop
Recovering From the Pandemic
B.C.’s economic comeback depends on fairness for the open shop BY CHRIS GARDNER
F
orget any talk of V- or W-shaped economic recoveries, or quick turnarounds. For B.C. construction companies who are working off pre-COVID-19 project order books, the big question in the industry revolves around construction volumes in 2021. Business and consumer confidence, combined with the ability of governments to fund stimulus projects, will determine the level of activity for the sector in the year ahead. B.C. open shop construction companies pivoted quickly and effectively to meet the health and safety challenges of COVID-19. Construction slowed in mid-March and early April as the industry worked with the Provincial Health Officer to get proper protocols in place, but never shut down. Months later, there is only a single documented case of COVID-19 being contracted by a worker on a construction job site in B.C. It’s a remarkable commitment to safety by construction contractors and by the 250,000 men and women working in construction. It is vital that construction companies be prepared for this slow recovery. 2019 will, in all likelihood, be the high-water mark for construction activity for the next few years. Every month, the Independent Contractors and Businesses Association (ICBA) tracks hours worked by a large sample size of our nearly 2,500 construction member companies and clients. The impact of COVID-19 is clear — there has definitely been a downturn in B.C. construction activity from 2019 to 2020. As ICBA reports: • 2020 started off very strong with a 6 per cent increase in hours worked in January and February, over the same months in 2019. • Year-to-date, the sector is down 10 per cent compared to 2019. • The result: a 16 per cent pull-back in construction work as a result of COVID-19. 12
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ICBA’s current projections are that B.C. construction hours worked will be 10 per cent lower in 2020 compared to 2019. Given that 2019 was one of construction’s busiest years ever, and that the broader economy has been crushed by the pandemic, this performance is a remarkably strong showing for construction — making it the envy of many other sectors who are seeing far larger reductions. As our ICBA leadership team meets with members from across B.C., we are picking up significant concerns that private sector tendering has slowed because of cash-strapped owners, uncertainty over how COVID-19 will play out, higher taxes, and ever-increasing government red tape. There is a lot of wait-and-see that is revealing itself in projects being postponed. As a result, ICBA sees the potential for another decline in construction volumes in 2021 compared to 2020. The Conference Board of Canada’s analysis reflects ICBA’s caution about the outlook going forward. The board projects B.C. housing starts to be 35,300 in 2020 and 38,000 in 2021 — a doubledigit percentage drop from 45,000 in 2019. Procore, the project management software company, used the first week of lockdown in mid-March as a statistical baseline and has been charting its B.C. users’ construction activity from there. Activity has been relatively steady at about 25 per cent higher than the worst of the recession. This reinforces the idea that the first week of lockdown saw many B.C. construction sites pause to sort out proper COVID-19 safety protocols; but that pause was short (the COVID protocols, however, will be here until, hopefully, there is a vaccine). However, this rebound still leaves construction lagging behind its 2019 levels. There is little doubt we will be in this recession for quite some time. We believe there will be a long tail on the negative impact of COVID-19; getting back to a more normal operating business climate will not be possible until a vaccine is developed and widely distributed.
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As we transition from this unprecedented sharp decline into what will be a slow economic recovery, now is the time for government to be bold — to issue RFPs and tenders for important construction projects which both spark the economy and create needed transportation, health, housing, and other infrastructure to support jobs, our competitiveness and improve our quality of life. Municipal governments, with limited budgets and borrowing capabilities, should focus on speeding up approvals for private investment in their community, including new housing and businesses. Mayors and councils should aggressively cut red tape and find ways to get good projects going now. Complexity and confusion will cripple our return to a strong economy. Cutting red tape, fast-tracking approvals and inspections, issuing permits, and quickly rolling out bold plans for building new infrastructure must guide the thinking at all levels of government over the coming months. The B.C. government needs to go a step further and abandon its shortsighted, 1970s-era tendering monopoly with the building trades unions that effectively directs work to just 15 per cent of the construction workforce. Given that fully 85 per cent of the men and women who work in construction in B.C. work for open shop companies, the provincial government must ensure that every B.C. construction contractor and every construction worker has a fair shot at capital projects. The provincial government is swimming in debt — estimates for the 2020/21 budget deficit are as high as $15 billion, so every dollar is precious and must be stretched as far as possible in helping the economy recover. Government cannot continue to pay construction prices they have artificially inflated by chasing away open shop bidders, favouring building trades unions, adding layers of needless bureaucracy, and putting higher risk on to contractors. These so-called “Community Benefit Agreements” also leave out 82 per cent of trades apprentices in B.C. — the ones who work with open shop companies. Rather than giving younger workers more opportunities, this policy strips that away for the vast majority of apprentices. Throughout this pandemic, we have heard from government and health officials that “we are all in this together.” The same holds true for the economic recovery — the provincial government needs to ensure we are all in the recovery together. Chris Gardner is the president of the Independent Contractors and Businesses Association.
Open Shop
High Demand for Training
ICBA training services continue amid pandemic
E
ven during a pandemic, the Independent Contractors and Businesses Association (ICBA)’s training department goes above and beyond to support open shop contractors. With the open shop representing 85 per cent of the construction industry and construction deemed an essential service, ICBA’s training department knew that the demand for professional development training, apprenticeship support and workforce development wasn’t going to slow down. When the economic shutdown hit and ICBA’s classroom courses were cancelled, the team jumped into action and rapidly turned their in-person workshops into virtual webinars. “We knew that we had to continue providing our high-quality training but in a more physical distance-friendly format,” said ICBA’s senior training coordinator Ally Bodnar. “Our instructors were happy to work with us to develop their courses into something that we then started delivering virtually.” Within a short time, ICBA had already scheduled multiple webinars from some of their most popular instructors, including sessions on legal issues, navigating working from home, and town halls on important issues facing the industry. Several months later, ICBA is still hosting multiple virtual courses each week in addition to a few select in-person workshops with strict physical distancing and sanitation protocols in place. “Even with these uncertain times, we’ve added more than 40 new courses this year,” said Bodnar. “We’re well on track to train our highest number of people by the end of 2020.” Need a course tailored specifically to your workforce? ICBA can provide curriculum development services, train your workers directly on the job site by bringing the trainer to you, or develop a custom suite of courses centering around a specific topic. In addition to professional development training, ICBA is the single largest sponsor of construction apprentices in British Columbia, and has been for well over a decade. “Our employers train over 85 per cent of B.C.’s construction apprentices; and the program provides them and our apprentices with all the supports they need to focus on learning the trades skills to become qualified journeypersons,” said ICBA director of training Sabine Just. “If apprentices need to move to another area of the industry to get full trades exposure, we’ll facilitate placements with another employer. If an apprentice needs additional help with school, we will find support. Our industry needs more people and we will do everything to make their career start a successful one.” With more than 1,300 apprentices throughout B.C., ICBA is well-versed in the apprenticeship system and how to best help its member companies and their employees work through the process to becoming a certified journeyperson. No matter the size of the company or the number of apprentices, ICBA’s apprenticeship program offers assistance with apprentice registration, hour updates, certificate management, and more. The team also works closely with B.C. school districts to assist youths interested in a career in construction and sponsor them throughout their youth apprenticeship. Those services didn’t stop during the shutdown. While working from home, the ICBA apprenticeship team was available to assist apprentices looking for more information about their training options, walk employers through the process, and ensure that no step was missed on the path to becoming a journeyperson. But apprentices have to start somewhere. One of those starting points is the ICBA Employment Network. Looking for work in the industry or looking to hire? One of the biggest obstacles that construction companies are facing is the lack of available workers. ICBA is here to meet the challenge.
“Our Employment Network is simple, fair and effective,” said ICBA’s vice president - workforce development Todd Cumiskey. “We connect workers who are between jobs with our employers who are looking to crew up.” Construction continues to be one of the fastest growing industries in B.C., and was one of the few that continued at nearly full strength during the economic shutdown. This meant that ICBA members continued to hire, and ICBA’s Employment Network was there for them. “We have over 2,500 members and clients,” said ICBA project coordinator Kerry Vital, who oversees the Employment Network. “This means that at any given time, hundreds of companies are looking to add to their team. Whether you’re an apprentice, journeyperson, foreman, site superintendent, office administrator or something else, there are positions available.” ICBA has placed job seekers of all kinds with companies throughout B.C. in the past year, including electricians, plumbers, heavy equipment operators, and business development personnel. “We work closely with immigrant services agencies, high school career counsellors, Indigenous groups and other organizations,” said Vital. “This provides us with an ever-growing pool of people looking for work, year-round, and ensures that when our members are looking to hire, we have resumes to send them for consideration. We will even assist with the preliminary interviewing process.” For more information about the ICBA Training, Apprenticeship or Workforce Development programs, visit www.icba.ca.
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September/October 2020
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Skills Training
Supporting Indigenous Careers Indigenous Apprentices: A Significant Increase At the end of March 2020, Indigenous peoples comprised eight percent of apprentices registered with ITA. Over the past 10 years, B.C.’s Indigenous peoples’ representation in the trades training and apprenticeship system has continually increased: • The number of Indigenous peoples participating in apprenticeship training has grown from just over 500 to just over 3,000 (a 474 percent increase). • Indigenous women participating in apprenticeship training has also grown, from just under 80 to just under 500 (a 555 percent increase). • The number of Indigenous women participating in under-represented trades (this includes all trades except cook, baker, hairstylist, and landscape horticulturalist) increased from just over 30 to just under 300 (a 835 percent increase).
S
upporting the success of Indigenous people and communities in skilled trades careers is a key commitment of the Industry Training Authority (ITA). ITA has been working with Indigenous individuals, employers, and organizations for many years to support First Nations, Inuit, and Métis prosperity throughout B.C. and Canada. Indigenous cultural inclusionandreconciliationisastrategicpriorityboth within ITA and in how it connects with its partners. A key to increasing opportunities for Indigenous people in trades careers has been the formalizing of partnerships with local and regional organizations. ITA’s community-based training model (CBTM) helps bring programming into rural and remote regions of B.C. This model has helped develop greater local skills creation and employment opportunities, social and economic development, and a sustainable, regional work force. Indigenous community partners and groups share their culture with ITA to enable staff to better understand those with whom they work closely. “To be able to bring the technical trades training to communities across B.C., and for those communities to be able to provide the opportunity for their apprentices to cover the scope of trade and work experience in all levels of their apprenticeship, is truly remarkable,” said Michael Cameron, director of Indigenous Initiatives at ITA. “The collaborative effort of ITA with our partners demonstrates a true commitment to reconciliation and the innovation in removing barriers to Indigenous peoples’ success in trades training.” 14
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For remote communities, a strong, highly-trained cohort of trades professionals creates self-sufficiency and a lasting legacy of infrastructure and knowledge. Trades training plays a big part in preparing community members for economic opportunities as well as providing in-community skilled individuals for projects on and off reserve. With CBMT, apprentices can develop practical, real-life work experience as well as earn workplace certifications. Sending community members away for skills training isn’t just expensive; it also means the apprentices have to spend time away from their families. For a fraction of the cost, CBTM brings instructors into communities instead. It is also supported by work or capital projects in the community or region, to aid in the individual’s apprenticeship pathway. “I can sum up our relationship with the ITA this way: Ama Sqwetsp: A Good Journey — a good journey working together bringing community-based training to the community that will expand the horizons for today, and tomorrow’s generations,” said Catherine Pascal, manager of employment and training at the Tśzil Learning Centre for the Líl̓wat Nation. Since 2018, ITA has signed 12 Memoranda of Understandings (MOUs) to make CBTM a reality in communities around the province. The MOUs include First Nations communities, Indigenous Skills and Employment Training (ISET) agreement holders, and a Hereditary Chieftain group with the goal of increasing trades sponsorship and apprenticeships within their regions.
September/October 2020
• The number of Certificates of Qualification issued to Indigenous peoples has also increased; for Indigenous men, from 64 to 255 (298 percent increase) and for Indigenous women, from 15 to 60 (300 percent increase). ITA partners with a minimum of four ISETs annually in delivering First Nations/ industry forums to help bridge the cultural understanding between Indigenous people and industry with the goal of forging new partnerships. In 2008, ITA established its Indigenous Advisory Council to provide input and recommendations to ITA on how to increase participation in skilled trades training amongst Indigenous people across the province.
Through these MOUs, partners become the sponsors of apprentices working on local projects, ensuring employment for their local communities and creating an appropriate cultural approach to an apprenticeship pathway and experience. This has supported apprenticeship opportunities and training that have created greater local skills creation and employment opportunities, economic development, and a sustainable work force. “NEST is honoured to be collaborating with the Industry Training Authority to support Nisga’a apprentices and tradespeople to access a meaningful trades career. In alignment with a strong and productive relationship, NEST and ITA connect Nisga’a citizens to sustainable employment options close to home and throughout B.C. to achieve a higher quality of life and to move B.C. forward,” said Gary Patsy, Manager of Nisga’a Employment, Skills & Training (NEST), on behalf of the Nisga’a Government.
Skills Training
Time is Right for a Construction Career BY PAUL DE JONG
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hen COVID 19 took a wrecking ball to Canada’s economy, it swung in every direction. The pandemic decimated major sectors; grounding airlines, shuttering stores and restaurants and shelving many promising careers. While the timing seems terrible for job seekers, that’s only because they’re wearing blinders. The reality is, there’s plenty of opportunity to land a career that offers good pay, job security and a chance to advance. That’s what makes the construction trades the ideal career choice for these uncertain times. No one can blame job seekers for feeling discouraged. Students and graduates are launching into the labour market during Canada’s worst economic meltdown. Job interviews have been cancelled and co-op programs cut, after companies across virtually every industry laid off three million Canadians at the height of the pandemic. And many won’t get their jobs back, given predictions that up to 100,000 businesses will close for good. When the economy turns, the impact can be lasting, especially for those just starting their career. A report by the Royal Bank on the longterm consequences of graduating in a recession, found that those with university educations are less likely to wind up in management positions and more likely to work part-time in jobs below their skill level. With a vaccine some time away, Canada isn’t about to shake off the effects of this global pandemic anytime soon. All the more reason for job seekers to get realistic and focus on where the opportunities are. That’s why the Progressive Contractors Association of Canada (PCA), with the support of its member companies and like-minded organizations, recently launched “Opportunity Knocks.” The campaign is aimed at putting the construction trades on the radar of more job seekers, especially those who find themselves in career limbo. It encourages anyone starting out in the labour market, or making a change, to consider what construction has to offer: rewarding, high demand, life-long careers that can start right away. Deemed an “essential service” throughout the pandemic, the construction industry has been more resilient than most during the COVID-19 lockdown. Our workers were on the front lines, maintaining critical infrastructure, from energy plants to hospitals. Construction workers kept our water running, ensured our homes were powered and our broadband up to speed. Without question, the pandemic has brought the importance of the construction trades into greater focus. We also know the skilled trades will matter even more in the future. According to Skills Canada,
nearly 40 per cent of jobs created in Canada this decade will be in the skilled trades, yet only about 26 per cent of young people aged 13 to 24 are considering this career path. That’s the problem. There simply aren’t enough skilled workers to meet the growing demands of industry and our economy. As demographics shift, the skilled trades shortage is becoming more dire each year, resulting in project delays and billions of dollars annually in lost economic activity. According to BuildForce Canada, the construction industry will need to attract more than 300,000 construction workers this decade. That’s to counter the retirement of roughly one quarter of Canada’s construction industry in the next 10 years. For industry, this is a huge challenge. For job seekers, it’s a huge opportunity, especially for women, youth and Indigenous peoples, who are still vastly underrepresented in construction. The opportunity is there, and so is the pay. According to Statistics Canada, most of those with apprenticeship certificates earn more than college or high school graduates. Apprentices also have the advantage of earning while they learn and graduating with no school debt. That’s a big advantage, given that many of today’s university graduates are saddled with thousands of dollars in student loans, and no job prospects. It’s about time parents, guidance councillors, and students snapped out of the dated mindset that a university degree is somehow worth more than an apprenticeship and skills training. Alberta Premier Jason Kenney gets it, and others should
too. “Apprenticeship learning has every bit as much value as academic learning, and skilled trades have every bit as much value, merit and worth as a university degree,” he said when announcing a 13-point “Job Skills for Alberta’s Economy” plan. It’s aimed at putting the skilled trades where they belong: on equal footing with all other academic pursuits. Attracting investment and keeping our economy competitive, requires far more than a post-secondary system that turns out accountants and people who write code and create apps, especially now. As Canada recovers from the pandemic, it needs construction tradespeople more than ever to rebuild the economy. When I was in school, I also worked in concrete form fitting and carpentry. I earned extra money and gained skills that I put to use as recently as last weekend, tearing down siding, framing, and putting up dry wall. Mastering a skilled trade is a life skill. It’s something to build on and be proud of. That’s what educators should be telling more students: make the skilled trades Plan A, not a fallback if another position doesn’t work out. Anyone weighing their career options, should be strongly encouraged to pursue the construction trades as their very first choice. This is where the career opportunities are right now, and well into the future. Paul de Jong is president of the Progressive Contractors Association of Canada (PCA). To learn more about the Opportunity Knocks Campaign, go to: opportunity-knocks.ca.
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Skills Training
Rethinking Trades Training
COVID-19 has created a new normal for learning BY WAYNE HAND
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n response to COVID-19, BCIT, like many institutions and industries, had to adapt to a new business delivery model within a very short timeline. We have learned a lot over these past few months, some things we will adopt as best practice into our normal life post-pandemic, others we will hopefully never have to implement again. When the COVID-19 pandemic hit us in March, BCIT along with all other post-secondary institutions quickly moved to online learning. At that time there were about eight weeks left in the academic year for the semester-based technology and degree programs which were for the most part able to deliver the rest of their learning outcomes online and successfully have their students complete the spring term before taking a break over the summer. For the trade programs, however, it was a bit more challenging as classes operate year round. The trade programs had classes at all stages of completion as well as new intakes scheduled to start in the weeks ahead. Many of the skills taught in the trades are learned with a heavy emphasis on doing, understanding the theory first and then directly applying that theory by performing a task that demonstrates competency. Teaching the theory portion online works well for some of the training; however, most of the programs needed to find a way to bring trade students back on campus, at least for a condensed period, to complete the essential practical hands-on projects. As the largest trades training institute in the province and knowing the demand for a skilled workforce has been an ongoing topic of concern by both government and industry for many years, it was important for BCIT to create a safe plan that allowed students to return to campus as soon as possible. The constraints that we needed to work within varied somewhat due to program specific learning outcomes as well as physical space characteristics of our facilities. The safety requirements were the same for BCIT as for most of industry, namely: 2 metre social distancing, frequent hand washing and use of hand sanitizers, minimizing common touch points and if working in confined spaces only then rely upon masks. Before COVID-19, students would work on some projects in groups, but now we need to rework the projects to deliver the same learning outcomes while completed on an individual basis. There is no sharing of tools, materials or working in close proximity to each other. When using equipment that others need to also access, we have a cleaning program in place. Classrooms, walkways and common areas need to have reduced capacity and clear directional signage in order to maintain proper distancing. Washroom capacity was reduced so additional 16
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temporary handwashing stations were installed, similar to how the construction sector dealt with this issue on their sites. In some cases, these constraints had an impact on the number of students that we could accommodate in a shop environment. Fortunately with blended learning this is somewhat offset by a significant amount of the technical training being done online thereby reducing the time that students needed to be on campus. In many instances, departments were quick to innovate and maintain full enrolment capacity. A prime example is the BCIT Electrical program which is the largest trade program at BCIT and in the province. In response to the pandemic, the department made the conversion from face-to-face training to online training within a few days. All four years of the electrical apprenticeship are now delivered online, taking advantage of interactive software for electrical troubleshooting. Students are able to operate remote controlled equipment in the BCIT electrical lab that allows them to build a complete operating plant from scratch and connect to the programmable logic controller unit in the BCIT lab to operate their virtual factory from home. In late May, a fourth year Joinery Apprenticeship class was the first group of students to return to campus since the March transition. Over the past couple of months we have managed to put in place the appropriate safety measures that allow all of our construction apprenticeship trades back in our shops. The format varies for each trade. The electrical trade is almost entirely delivered online, whereas
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the carpentry apprenticeship which normally was delivered through seven weeks of technical training on campus per year is now being delivered with three weeks of online learning followed by four weeks on campus. The experience gained from the past few months will have an impact on how we offer trades training at BCIT post-pandemic. At minimum, online resources that have been created will continue to be used as a supplementary resource that will be available for students. Resources include 24/7 remote access to innovative videos, simulators, curriculum, recorded lectures, etc. We have received feedback from students who were very appreciative that they could take a portion of their training online and minimize the time and cost of travelling from outside the Lower Mainland in order to attend their on campus apprenticeship training. So there will likely be some programs where students will be able to choose between in-class, blended or perhaps all online format. Continual improvement is fundamental in all educational environments so we will take whatever good we can glean from this current environment and apply it as we move forward. Considering all the changes that BCIT has made over these past months in response to the pandemic the most satisfying has not only been the innovation of online learning, but also the excitement felt by seeing students finally return to campus. Wayne Hand is BCIT Dean of School of Construction and the Environment.
Wood
Expanding CLT Usage BY MARK ROBERTSON
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ross-laminated timber (CLT) is gaining traction as a building alternative to concrete and steel. Originally used to create warmth in buildings, CLT is expanding from institutional to developer projects. While sustainability remains key, competitive pricing and prefabrication give developers more options for building materials. Compared to concrete, wood has demonstrated a sustainable and cost-effective option for developers and building owners. Like a giant plywood Jenga tower, CLT is a multi-layer mass timber product with alternating layers stacked with precision accuracy to create strong, lightweight building material. When finished, CLT has strength comparable to concrete but approximately 20 per cent of the weight. As an early adopter, British Columbia continues to be a hotbed of CLT projects. UBC is home to both Brock Commons, an 18-storey residence and previously the world’s tallest plyscraper, and Virtuoso, a six-storey mixed-use building and the first market CLT structure in Canada. As a part of Adera Properties Inc. development team, WHM Structural Engineers helped design the building using a hybrid structure of CLT floor panels with prefabricated stud walls accelerated construction. It was only a matter of time before developers in Vancouver’s busy residential market noticed.
COST EFFICIENCY With more suppliers, CLT has become cost-competitive compared to other materials. In the construction/structural industry, concrete is familiar, but now more options keep overhead low for CLT. Installers and builders have more experience to handle it more comfortably while a growing supply market with new players allows for competitive pricing on base materials. In a hot construction market like B.C., the price and availability of critical trades can be a problem for developers. CLT is an option that can avoid a shortage of skilled trades and becomes more competitive as pricing for CLT falls. PREFABRICATION Prefabrication offsite can decrease labour and time on-site so buildings go up fast. CLT allows for a quick turnaround as deck pieces are created offsite and delivered in time to be installed into place. Logistical laydown areas are limited compared to other structures of similar size, saving time and money spent on-site. MARKETING BENEFITS OF WOOD Condo buyers are drawn to the sustainability aspect of CLT and help drive unit sales. Upcoming build-
The first market CLT structure, Virtuoso, used a hybrid Light Wood Frame and Panel system.
ing codes allow for portions of the structure to be exposed and the warmth of wood can be a compelling selling feature. Planning officials are equally enthusiastic about the use of CLT and may help developers during planning approval. This means taller buildings and an increase in the floor-to-space ratio can be negotiated which would not be achieved using conventional construction.
IMPORTANCE OF STRUCTURAL DESIGN As with most projects, engaging a structural engineer early in the design is critical to selecting an efficient structural arrangement. For CLT buildings, this is especially important because architects may not know the best location for columns and walls. Identifying these minor layout changes can have a notable impact on structural efficiency. Engineers can determine what structural system reduces the total wood used in the design; the most cost-effective CLT structures minimize volume. This is done in several ways: 1. Hybrid Light Wood Frame and Panel: Standard light wood frame construction with CLT panels replacing what would normally be TJI joists. Compared to traditional I-joists, CLT can be more expensive but installed much faster, especially if the layout suits large panels. It is the most costeffective hybrid mass timber system but restricted to six storeys. 2. Post and Beam: This system results in a very thin CLT deck with the least amount of wood fibre. Although a cost-effective structure, it is not the most efficient solution when considering the building components as a whole. Post and beam systems require deep beams that increase floor-
to-floor height and cause difficulties in running mechanical systems. If fire protection is needed, beams are also more expensive to encapsulate in type X drywall than flat CLT panels 3. Point supported CLT: Used on the Brock Commons building, a point supported CLT system is like a concrete flat slab but use CLT panels instead. Depending on the supplier, the panels are up to 10’ or 12’ wide which means that column spacing in one direction must be 10’ or 12’ o/c. More cost-effective than concrete but with many columns that may constrain the architectural layout. 4. Slab Strip (Slab-Band) CLT System: Like concrete slab-band systems, slab strip CLT systems have a wide shallow beam spanning between columns. Added panel thickness is offset by using a thinner panel between the “slab-bands”. As a result, the average thickness is about the same as the point supported slab, but larger spans of 25’ to 30’ can be achieved with fewer columns. As CLT becomes more common, this only contributes to its viability as a building alternative for developer projects. More builders and suppliers mean that a decrease in price can continue. Sustainability remains a draw for both buyers and officials. Buildings will continue to go up with CLT providing developers with an almost literal “out-of-the-box” alternative to other systems. Mark Robertson is an associate at WHM Structural Engineers. He has a wealth of knowledge and experience in various structural materials and is considered an industry expert in heavy timber design.
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Wood
Demystifying Tall Wood Buildings BY ILANA DANZIG AND ANDREW CHAD
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ood has been used in tall buildings and structures for millennia. Until recently, wood construction generally meant light frame construction, a cost effective and efficient way to build up to six storeys. However, updates to building codes and increasingly available modern materials and connectors are game changers, opening the door to efficient, safe, environmentally friendly, and cost-effective tall wood buildings.
WHY WOOD? Wood has long been celebrated as an efficient, affordable, and highly renewable structural material. Smaller pieces of wood can be laminated together to produce structural elements such as glulam beams and cross-laminated or nail-laminated panels. No longer restricted to one-off trailblazing projects, tall wood buildings are becoming attractive to owners and developers on their strengths alone. When wood is used in the six to 12 storey range, there are several compelling advantages over traditional construction: • Prefabrication: A high level of quality control can be achieved in a shop, and substantial construction time can be saved by scheduling the foundation and podium construction concurrently with timber shop drawings and fabrication. • Carbon sequestration: Wood naturally sequesters carbon from the atmosphere. Compared to the substantial carbon impact of concrete construction, mass timber buildings have a significant environmental advantage. • Site conditions: Much of the site noise, traffic, and mess are over with the completion of the foundation, parkade, or podium. The erection of timber tends to be safe, fast, quiet, and efficient with minimal site work. • Cost savings: Already proven cost competitive from a material and erection standpoint, mass timber construction can yield months of schedule savings compared to concrete or steel. • Appearance: While codes place limits on how much wood can be exposed, the visibility of wood structural elements is highly appealing in both office and residential settings. CODE CHANGES Changes in the 2020 National Building Code of Canada (NBCC) and the 2021 International Building Code (IBC) in the United States will allow mass timber tall wood buildings. In Canada, the code will be introducing a new construction type called Encapsulated Mass Timber Construction (EMTC), permitting mass timber to be used for buildings up to 12 storeys. The code will include fire protection requirements during construction, fire rating, allowable occupancies and square footage, and limits on the amount of wood that can be exposed. In the United States, the 2021 IBC will allow for mass timber buildings up to 18 storeys tall. WHAT TO KEEP IN MIND FOR TALLER WOOD BUILDINGS: Fire Performance — Fire safety is achieved in a tall wood building like it is in a steel building: protecting the structural elements from the heat of fire through encapsulation. Wood has an additional advantage through the charring of mass timber elements: wood charrs at a predictable rate and members can be sized for post-fire loads. In the upcoming code changes, gypsum is needed to provide some or all of the fire protection, and charring can be used to provide some of the structure’s fire protection. Seismic Performance — The lateral systems available for use in tall wood buildings are limited to traditional steel brace and concrete shearwall systems in high seismic regions. Supply — Increases in North American suppliers are helping to keep costs competitive, however designers should understand the different supply options so that multiple suppliers can provide bids. Unique Method of Construction — Traditional concrete floorplates and 18
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Case Study: Tallwood 1, Langford, BC. Tallwood 1 will be among the first 12 storey mass timber buildings in Canada. The client, Design Build Services (DBS) elected to use mass timber for their residential tower, and the City of Langford is one of the early adopters of the 2020 EMTC provisions. DBS has long used mass timber as a component of their mid-rise buildings. They choose to build with mass timber for the efficiency of construction and the reduction in carbon footprint. This 179,000 square foot building is ideal for a 12 storey mass timber building for the following reasons: • Residential occupancy allows a tight enough column spacing for point supported CLT, a mass timber flat slab option that avoids beams and allows for simple coordination of services and finishes. • The timber structure is uncomplicated and the floor plates are identical with no transfers except at the penthouse. • Highly ductile eccentrically braced steel frames provide the lateral system, critical as Langford is one of the highest seismic regions in Canada. The steel frames can be prefabricated and partially preassembled, so erection is not slowed by the lateral system, and steel and wood can be erected in tandem.
column grid spacings may not be competitive in mass timber. The efficient use of wood is paramount, and grid spacing and framing style must be tailored to the material. Regular and repetitive structures with simple connections are the most cost effective to produce and build. Moisture — A moisture management plan during construction is essential. Preplanning — These are highly prefabricated structures that need to be fully designed and detailed before hitting the CNC machines. More time on 3D modelling and planning leads to less time on site fixing problems. Expertise — An experienced design team is critical to avoiding the biggest pitfalls in this new type of construction.
CONCLUSION Tall wood buildings have a short but proven track record of being safe, environmentally friendly, and cost-effective, and upcoming changes in the US and Canadian building codes will pave the way for many more of these buildings. Though new in the codes, there is enough expertise within B.C. and Alberta, as well as the materials and suppliers, to successfully deliver on tall wood buildings. Ilana Danzig is an associate with ASPECT Structural Engineers, and Andrew Chad is a principal with ASPECT Structural Engineers.
Wood
A Living Laboratory
Fast + Epp’s new office showcases hybrid mass timber
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fter 35 years in its two-storey building on the peaceful streets of the Kitsilano neighbourhood in Vancouver, B.C., Fast + Epp made the decision to build a new home office by what promises to be one of the busiest transportation hubs in the city. As part of the firm’s philosophy to challenge convention and push the design envelope, the new Fast + Epp home office would be the ideal opportunity for the firm to showcase and test unconventional hybrid mass timber office construction with integration of leading edge seismic technology. A narrow corner lot located by Broadway City Hall Canada Line station in Mount Pleasant was purchased to prioritize employee accessibility. Given the firm’s involvement in prominent mass timber projects including the Walmart Home Office in Bentonville, Arkansas and 10-storey Arbour at George Brown College in Toronto, Ontario, it made sense for Fast + Epp to take on designing their own space as a challenge.
DETAILS BEHIND THE DESIGN In the collaboration between Fast + Epp and f2a architecture, a four-storey building was designed with an abundance of natural daylight and ample balcony space on the fourthh floor, while a twostorey central atrium connects the third and fourth floor. While there was minimal laydown area given site constraints, the key for an efficient and unified construction schedule was prefabricating as many structural components off-site as possible. To support cross-laminated timber floor panels, glue-laminated timber beams was chosen given its simplicity over complexity. Reducing the size of the glulam beams to a 608mm depth, satisfied the safety requirements while pushing the limits on vibration performance. Meanwhile, the three-ply crosslaminated floor panels consist of a total thickness of 105mm at levels 2, 3, and 4, and 87mm at the roof. A non-composite 50mm concrete topping layer as well as a 10mm thick acoustic mat is added onto the cross-laminated timber panels, helping achieve a fire resistance of up to two hours. SEISMIC ENGINEERING There have been considerable advancements made in mass timber applications in high seismic zones. Having been involved with numerous timber research initiatives (such as novel energy-dissipating cross-laminated timber shear wall hold-downs and cross-laminated timber balloon-frame shear wall detailing), enabled Fast + Epp to bring lessons learned to the design of its new office structure. Being used for the first time in North America and unique to Fast + Epp’s home office building is
the use of the damage-free, self-centering energy dissipation Tectonus devices embedded at the base of the cross-laminated timber shear walls. The metal, spring-loaded brackets in the Tectonus devices dissipate energy through friction, acting as ‘shock absorbers’, ensuring that the integrity of the building remains the same after a seismic event, while providing immediate post-disaster safety of the structure. These devices are also efficient and simple to install and connect to timber. Further inspired by the firm’s design philosophy and unconventional solutions, a 5,000 square foot ‘Concept Lab’ will be designated for continuous research, development, and testing various aspects of mass timber construction. The dedicated space promises to become an in-house workshop for builders, designers, and clients to come together and collaborate on new ideas.
CONSTRUCTION PHASE Erected in just four short weeks, the recent completion of the superstructure installation highlighted the speed and efficiency of building with mass. The many building components prefabricated allowed for a quick installation on a space-constrained site. Moisture barriers and insulation were pre-installed on all cross-laminated timber exterior walls, and service penetrations through glulam beams were CNC cut in the shop. Additionally, a 3D clash detection model, including all structural and glazing components, was built in Rhino3D to reduce potential site conflicts and facilitate the high level of prefabrication. To simplify construction and reduce cost, an aggressive approach to temporary moisture management was adopted by pre-applying a temporary moisture membrane to the roof panels only, with the understanding that the structure would only be exposed to potential rainy weather for a few short days during sunny summer weather. The new building also features an electro-chromic glazing system that enables dynamic optimizing and tinting of windows, controlled via smartphone, which also allows for significant reduction
of cool loads during the summer as well as a cutback in energy costs.
CONCLUSION The building is anticipated to be completed by end of 2020. As a ‘living laboratory’, Fast + Epp will continue to research, test, 3D print, prepare prototypes and mock-ups, develop software, and display material samples as all part of its Concept Lab initiatives (part of where the firm’s Concept app and recently launched Timber Bay Design Tool were borne). The continuous process of exploration, testing, and analyzing new ideas and technologies of the new office structure is parallel to Fast + Epp’s culture, values, and “fresh thinking” philosophy. In the meantime, the new superstructure is undergoing more experimentation and analysis, such as the ongoing vibration testing and analysis, cross-laminated timber wall structure thermal performance testing, and acoustic testing of the floor assembly.
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Legal File
Statutory Trust Claims
Court confirms claims survive an insolvency BY MICHAEL B. MORGAN
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he insolvency of an owner or contractor can have a devastating impact on unpaid subcontractors and material suppliers who performed work or provided materials in connection with a particular construction project (subs and suppliers). The usual remedy that subs and suppliers often resort to in those circumstances is to file a claim of builders’ lien against title to the subject project and then hope there is enough equity in the project to generate some form of return on the unpaid amounts. However, there may be timing or other enforcement issues with respect to such claims as a result of whatever creditor protection proceedings may be invoked by the insolvent owner or contractor. What other remedies do subs and suppliers have? The Builders Lien Act in both B.C. and Alberta expressly provide that certain money received by a contractor or subcontractor is impressed with a trust for the benefit of subs and suppliers in the contractual chain. The trust provisions are one of the so-called “pillars” of the Builders Lien Act that can be a powerful and effective remedy separate and apart from any lien rights that may be enforced. However, in the context of an insolvency proceeding, the issue is whether such trusts are effective and enforceable given that insolvency is governed by federal legislation. Can the provinces enact legislation such as the trust provisions in the relevant Builders Lien Act that will survive the impact of an insolvency? A recent 20 CONSTRUCTION BUSINESS
decision from the Ontario Court of Appeal provided further clarity on that issue which will have broader implications for construction projects in other jurisdictions, including B.C. and Alberta. In the recent case of Urbancorp Cumberland 2 GP Inc. (Re) (Urbancorp), the Ontario Court of Appeal considered that very question, namely, the effectiveness of provincial statutory trusts, in this case the trust that is contained in s. 9(1) of the Ontario Construction Act, in the context of an owner who had sought creditor protection pursuant to the federal Companies’ Creditors Arrangement Act (the CCAA). In Urbancorp, contractors were owed $3,864,428.72 in unpaid sums for work and materials supplied to a condominium project. The developer of the project became insolvent and filed for creditor protection pursuant to the CCAA. The units were eventually sold in the CCAA proceedings. The contractors claimed that a trust arose over the net sale proceeds to the extent of the amounts owing to them. If they were correct, they would have an effective priority over other creditors for those amounts. Section 9(1) of the Ontario Construction Act provides that a trust arises where the owner’s interest in property is sold. That trust is the value of the consideration received by the owner less the reasonable expenses arising from the sale and the amount of any mortgage on title. The court found that a trust over sale proceeds of property in favour of unpaid contrac-
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tors created by s. 9(1) of the Ontario Construction Act can in fact survive a CCAA sales process, and would only be displaced under the doctrine of federal paramountcy if such trust conflicted with a specific priority in the CCAA. In this case, the court held there is no conflict as the trust provision in the provincial legislation is not, in pith and substance, legislation in relation to bankruptcy and insolvency, and that the priority creating effects, one being the protection of trust beneficiaries in an insolvency by giving them a priority over other creditors, are purely incidental to the legislation’s broader purpose to “protect the rights and interests of those engaged in the construction industry and to avoid the unjust enrichment of those higher up the construction pyramid.” As such, to the extent that s. 9(1) creates a trust that meets the general principles of trust law, which the court held to be the case, such provincial statutory trust does not conflict with the CCAA or the other main federal insolvency legislation, the Bankruptcy and Insolvency Act. Accordingly, the contractors in Urbancorp were entitled to the net sale proceeds that were found to be held in trust for them. As such, they recovered the full amount of their claims of over $3.8m in priority to other creditors. Could Urbancorp apply to construction projects in B.C. and Alberta? The basic reasoning should certainly apply, but the trust provisions in both provinces are different than the trust that arises in Ontario. Section 10 of the B.C. Builders Lien Act states a trust arises when a contractor or subcontractor receives money on account of the contract price. Therefore, an owner is not subject to the trust provisions in B.C. As such, it is only the insolvency of a contractor or subcontractor that trust rights may survive for the benefit of subs and suppliers. In Alberta, the trust provision is even more restrictive as the trust only arises after a certificate of substantial completion is issued. However, as in B.C., the trust in Alberta arises only for money actually received by a contractor or subcontractor. Nevertheless, the trust rights provided for in both the B.C. and Alberta Builders Lien Acts should be considered as it may be the only effective method of recovery on the insolvency of a contractor or subcontractor involved in a construction project. Michael B. Morgan is a partner at Lawson Lundell LLP. His main area of focus is commercial litigation with an emphasis on construction disputes including, in particular, builder’s liens, as well as commercial and residential real estate disputes.
Legal File
Lien Talk
Posting Security to Cancel a Certificate of Pending Litigation BY REBECCA CLEARY AND JULIE O’CONNELL
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iling a builders lien is an important tool to secure payment on construction projects, however, it is only the first step required to enforce a lien. In British Columbia, if a lien claimant does not commence an action in the appropriate Supreme Court registry to enforce the lien within one year of filing the claim of lien and file a Certificate of Pending Litigation (CPL), then the lien is extinguished and all associated rights are lost. A CPL is filed at the Land Title Office and is not unique to builders lien claims. They are generally filed whenever a lawsuit asserts an interest in land. Both a claim of lien and a CPL are similar in that they both warn prospective buyers and lenders that third parties have claimed a property interest in that land and that the land is potentially the subject of a lawsuit. A buyer or lender may require the removal of both the lien and CPL from title prior to completing a purchase or advancing funds. Section 24 of the Builders Lien Act, S.B.C. 1997, c. 45 (the BLA) creates a mechanism through which landowners, or contractors on their behalf, can apply to the courts to have a claim of lien cancelled from title, thus clearing the way for the land to be sold or financed, before the validity of the underlying lien claim is determined. In essence, an order under section 24 of the BLA cancelling a lien claim allows security to stand in place of the land. However, despite there being a long standing practice that both builders liens and CPLs are cancelled through section 24, the BLA is silent as to whether a CPL can be cancelled in this manner. In the recent decision of the British Columbia Supreme Court, 4HD Construction Ltd. v Dawson Wallace Construction Ltd., 2020 BCSC 1224, a subcontractor appealed a Master’s order granted under section 24 of the BLA that cancelled its lien claim and the related CPL upon the contractor’s deposit of security. In doing so, the appellant challenged the validity of an order that is commonly sought and granted in builders liens practice. The relationships between the parties and background facts of the 4HD Construction Ltd. decision are not unusual in the construction industry or dispute context. The appellant, 4HD Construction Ltd. was awarded a subcontract to carry out forming work. The respondent, Dawson Wallace Construction Ltd. was the contractor for the construction project. After the subcontractor registered a claim of lien, the contractor filed a petition seeking cancellation of the lien claim
and any related CPLs following the deposit of security for the subcontractor’s entire lien claim. Before the contractor’s petition hearing took place, the subcontractor filed a notice of civil claim and registered a CPL against the property. The notice of civil claim sought to both enforce the builders lien and alleged a constructive trust on the basis of unjust enrichment. On appeal, the subcontractor argued that while the Master could order that the lien be removed from title to the property upon the posting of security under section 24 of the BLA, the Master ought not to have ordered the cancellation of the CPL because the BLA does not specifically permit its removal. In the alternative, the subcontractor argued that if the court could order cancellation of the CPL, that it ought not to have granted that order in the circumstances of the case. In hearing the appeal, the British Columbia Supreme Court considered the issue of whether the courts have the implicit authority to cancel a CPL under section 24 of the BLA. The court determined that although the BLA did not specifically permit the cancellation of the CPL, it did provide the court with an implicit power to cancel a related CPL. The court noted this interpretation was necessary to give full effect to one of the objectives of the BLA: to provide landowners or contractors with a method of clearing title in order to avoid construction
delays and related costs while still protecting the rights of lien claimants. With respect to the second issue, the subcontractor argued that given that it had made a separate claim for a constructive trust on the basis of unjust enrichment, the Master ought to have permitted the CPL to remain on title. However, the court disagreed and found that the claim for the constructive trust was essentially duplicative of the appellant’s claim of lien. If the Master had allowed the CPL to remain on the property after the contractor provided a lien bond, the CPL would have provided the appellant with double security. The 4HD Construction Ltd. decision is an example of the creative arguments that remain available under the BLA. While the court ultimately determined that the long standing practice of cancelling a CPL under s. 24 of the BLA was appropriate, the decision does not close the door on potential future arguments that in certain circumstances, a court may exercise its discretion to refuse to cancel a CPL. If there is a basis for a lien claimant’s claim that is distinguishable from the facts underlying their builders lien claim, a landowner or contractor may not be successful in having a CPL cancelled by posting security for the lien claim. Rebecca Cleary and Julie O’Connell are members of the construction and engineering practice at Alexander Holburn Beaudin + Lang LLP.
September/October 2020
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21
Industry News
• Downtown Vancouver to Lonsdale via First Narrows (tunnel crossing). • Downtown Vancouver to Lonsdale via Brockton Point (tunnel crossing). • Downtown Vancouver to West Vancouver via Lonsdale (tunnel crossing). • Downtown Vancouver to Lonsdale via Second Narrows (new bridge crossing). • Burnaby to Lonsdale via Second Narrows (new bridge crossing). Connecting Lonsdale City Centre with Vancouver’s metropolitan core and the regional rapid transit network, while considering compatibility with existing and future land use, is one of the recommendations put forward by the Integrated North Shore Transportation Planning Project (INSTPP). That project was led by Bowinn Ma, MLA for North Vancouver, in 2018.
EDMONTON’S ICE DISTRICT TOWERS WIN GLOBAL AWARD Two towers in the heart of Edmonton’s Downtown Ice District have earned international accolades. Stantec Tower, JW Marriott Edmonton ICE District, and The Legends Private Residences have been awarded the ENR Global Best Project Award in the Retail/Mixed-Use Development category. The international competition by Engineering News-Record recognizes project teams for the best design and construction efforts worldwide. Stantec Tower is the tallest building in Canada outside of Toronto. JW Marriott Edmonton ICE District is only the third JW Marriott property in Canada. Both project teams demonstrated exceptional innovation by implementing safety measures to combat weather elements and mitigated construction risks posed by the height of each tower, as well as created safety programs to aid the protection of the general public and workers during construction. The JW Marriott Edmonton ICE District and The Legends Private Residences were developed by notable contract and design firms PCL Construction, EAD Property Holdings Corp, DIALOG Alberta Architecture. Stantec Tower was developed by Stantec Architectural, which managed the design, engineering, and construction of the tower. The Ice District development beat out mixed-use developments from several other countries including Australia, Ireland, Sri Lanka and Malaysia. RAPID TRANSIT CROSSINGS PROPOSED FOR BURRARD INLET The B.C. government has released the results of a technical feasibility study for a high-capacity rapid transit crossing from Vancouver to the North Shore, identifying five potential crossing methods. The Burrard Inlet Rapid Transit study will help inform the long-term Transport 2050 planning, led by TransLink and the Mayors’ Council. The study led by Mott MacDonald Canada resulted in five possible routes for future planning consideration: 22
CONSTRUCTION BUSINESS
September/October 2020
YVR CANCELS INFRASTRUCTURE PROJECTS The Vancouver Airport Authority will be terminating the CORE Program, a large infrastructure project at Vancouver International Airport (YVR), that has kept hundreds of construction workers, designers and engineers busy over the past two years. Due to the ongoing decline of air travel caused by the pandemic, YVR no longer has the immediate need for the additional capacity in utilities or parking. The CORE Program was designed when YVR was experiencing double digit growth and included a new central utilities building, geo-thermal heating and cooling system and a ground transportation centre including a new parkade. The authority will focus its financial resources on projects that support the recovery and restart of aviation, including trials for health screening and testing. Additionally, the Airport Authority will improve data and technology infrastructure, enhance cargo facilities, and pursue projects that are best completed while the airport is less busy, such as airfield infrastructure. Vancouver Airport Authority and EllisDon will work together to finalize wind down arrangements with the intent that all work will be concluded on the site by November 30, 2020. The project will be halted in its current state and can be restarted when the need arises. WORKSAFEBC AVERAGE BASE RATE UNCHANGED WorkSafeBC’s preliminary average base rate for 2021 will remain unchanged at 1.55 percent of employers’ assessable payroll. This will be the fourth year in a row that the average base rate has remained at this level, consistent with WorkSafeBC’s goal of keeping rates stable. The Workers Compensation Act requires WorkSafeBC to set premium rates annually for employers in order to pay for the workers’ compensation system. Annual base premium rates are driven by injury rates, returnto-work performance and the resulting cost of claims, as well as investment performance relative to required rates of return. Each year, the costs in some rate groups go up, some go down and others stay the same. In 2021, 46 per cent of employers in B.C. are projected to experience a decrease in their industry base rate, 43 per cent will see their industry base rate increase and 11 per cent will see no change. WorkSafeBC’s strong financial position in recent years has allowed the average base premium rate to be discounted below the average cost of claims, with the difference funded from higher-than-required investment returns. The preliminary average base rate of 1.55 percent for 2021 is less than the expected cost rate of 1.84 percent.
Wilson M. Beck Insurance Services Inc. “General Insurance & Contract Bond Brokers” ~ Serving the construction industry ~ ~ Personal, auto & ICBC fleet insurance ~ ~ Commercial insurance ~
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