CONSTRUCTION BUSINESS | September/October 2021 Vol. 18 No. 4 by MediaEdge

September/October 2021 Vol. 18 No. 4

PH1 LONSDALE PM 40063056

LARRY FISHER, LARK GROUP | OPEN SHOP | WOOD | SKILLS TRAINING

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Inside September/October 2021 | Vol. 18 No. 4

06 Connections President and CEO of Lark Group, Larry Fisher founded the development and construction company almost 50 years ago. It has grown and diversified over the years, delivering leading projects across the Lower Mainland.

PUBLISHER

MANAGING EDITOR CONTRIBUTING WRITERS

Dan Gnocato dang@mediaedge.ca Cheryl Mah Chris Atchinson Charles Bois Robert Cesnik

09 Feature Project

Todd Cumiskey Chris Gardner

Located on an extremely challenging zero lot line site, PH1 is an innovative mass timber commercial project built to Passive House standards in North Vancouver.

Andrew Hefford

B.C./ALBERTA SALES

Dan Gnocato Tel: 604.549.4521

PUBLISHED BY

Industry Focus 12 Open Shop The Right to a Secret Ballot Modernizing Training Strategies

16 Wood Excellence in Wood Design The Mass Timber “Wave” Wood Expands Design Options

19 Skills Training The Challenge of Change Women Face Wage Gap in Trades Make a Commitment to Recruiting Talent

Departments 04 Message from the Editor 22 The Legal File Validity of Claim of Lien

PRESIDENT Kevin Brown VANCOUVER OFFICE 105 - 1120 Westwood Street Suite 64170 Coquitlam, BC, V3B 4S4 Tel: 604.549.4521 TORONTO OFFICE 2001 Sheppard Avenue East Suite 500 Toronto, Ontario M2J 4Z8 Tel: 416.512.8186 Copyright 2021 Canada Post Canadian publications mail sales publication agreement no. 40063056 — ISSN 1710-0380 Return all undeliverable Canadian addresses to: 2001 Sheppard Avenue East, Suite 500 | Toronto, Ontario M2J 4Z8

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Construction Business is published four times a year by MediaEDGE Communications Inc. as follows: January/February/ March, May/June, September/October, November/December. Yearly Subscription: CANADA 1YR $35* 2YR $60* USA 1YR $60 2YR $110 INT 1 YR $85 2YR $150 *Plus applicable taxes REPRINTS: No part of this magazine may be reproduced in any form — print or electronic — without written permission from the publisher. Requests for permission to reprint any portion of this magazine should be sent to the publisher. Circulation Inquiries: 416.512.8186 ext. 232 circulation@mediaedge.ca

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Cover Photo PH1 in North Vancouver will be will be one of the first certified Passive House commercial projects in the country.prime contractor award for a project over $10 million. Photo Credit: Ishot 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.

Editor’s Note

Heightened Awareness

limate change, embodied carbon, net zero — all were big buzzwords in construction this year. The global pandemic brought climate change to the forefront like never before, allowing us more time to pause and think about our environment. The health crisis heightened our awareness across a number of social and political issues. We’ve all heard the statistics about the impact of buildings and construction when it comes to carbon emissions, and the call to make a real difference is getting louder. With the benefits of high performance, energy efficient buildings increasingly being recognized across the industry, projects like the one on our cover are important steps to keep the momentum moving forward.

PH1, a three storey mass timber building in North Vancouver by Naikoon Contracting, is raising the bar on what is possible with Passive House low-rise commercial projects. Prefabrication and virtual construction allowed the building to go up in only 10 days. We continue the focus on wood inside this issue with feature articles highlighting the BC Wood Design Awards winners as well as the mass timber movement locally and internationally. Our profile is Larry Fisher, president and CEO of Lark Group. The family owned business has been developing, managing, and constructing projects throughout B.C. for almost 50 years. The company’s innovative healthcare work is driving innovation, and in particular the massive Health and Technology District development in Surrey is garnering world-wide attention.

As always, skills training is a hot topic in the industry and the urgency to recruit and retain more talent remains unabated. BCCA president Chris Atchinson shares insights into the skilled trades opportunities. Two more articles take a closer look at the challenges women in the trades face. Training is also a focus inside our open shop section.

Cheryl Mah Managing Editor

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September/October 2021

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Connections

DRIVING HEALTH

TECH INNOVATION BY CHERYL MAH

City Centre 1 is the first of eight buildings in the Health and Technology District in Surrey

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September/October 2021

Connections Undertaking challenging and complex projects is nothing new for Surrey-based Lark Group. The family owned group has been developing, managing, and constructing projects throughout B.C. for almost 50 years. “We’ve built our success and reputation on maintaining strong long-term relationships and partnerships with all stakeholders including government, health authorities, municipalities and institutions on many public and private sector projects,” says Larry Fisher, president and CEO of Lark Group. Since the company was founded in 1972, it has grown and diversified to more than 100 employees, undertaking industrial, commercial, hospitality and institutional projects. Lark has become one of the leaders of institutional construction in B.C. with an extensive track record of delivering state-of-the-art health care and long-term care spaces through public private partnership, design-build and other innovative delivery methods. “It has been a lot of hard work to get to where we are today. We’re very conservative in what we do. We’re cautious, especially in the last couple of years with the pandemic, but we are keeping busy,” says Fisher, who remains hands on with company’s day-to-day operations. Fisher has certainly come a long way from his farming roots. Born and raised in High Prairie, Alberta, he obtained his degree in civil engineering at the University of Alberta. He started his career in technical sales, soil testing and management with different companies, working in the ready mix, precast concrete and potash industries. Fisher moved to B.C. when he was asked to set up a precast concrete plant in Richmond. During that time, he also began exploring the mobile home park business as an opportunity to own land. After buying a mobile home park in Surrey and operating it for about two years, he made the move into development. He built his first industrial park on King George Highway and since then has never looked back. “We did an industrial park in Cloverdale and several different buildings in Langley and a variety of shopping centres,” recounts Fisher about the early years. “We owned the property and performed the general contracting. We had those two hats and our experience gave us a leg up on doing construction because we understood the issues involved.” With development and construction as its core business, the company’s growth in industrial and commercial projects soon diversified into schools, community centres, hockey rinks and more. Their work in healthcare includes hospitals, care facilities, research labs and the innovative Health and Technology District. “We have won several RFP’s including the Royal Jubilee Hospital in 2008 and two care facilities, one in Victoria and one in Parksville. We have since sold both of the care facilities,” says Fisher. “We have done over 4,000 care beds in B.C.” The company’s ambitious plan to transform Surrey’s former Whalley area into a collaborative health-tech hub for digital health, wellness, technology and clinical service has drawn world-wide attention. The multi-phase district development currently consists of three buildings: City Centre 1 (185,000 square feet), City Centre 2 (180,000 square feet,

and City Centre 3 (135,000 square feet). When completed, the overall district will comprise eight buildings and more than 1.5 million square feet of retail and office space. Completed in 2014, the 12-storey City Centre 1 building is also home to Lark’s head office “This complex is by far our largest project to date, and it has gone extremely well,” says Fisher. ”We purposely built the Health and Technology District, starting with City Centre 1, next to Surrey Memorial Hospital, so that we can attract leading edge companies to help innovate and transform the healthcare space in the region.” The goal is to take this specialized health care and tech model to other provinces to build more districts. Lark has an agreement in place for a Health and Technology District in Saint John, which would be located on the University of New Brunwick’s Saint John campus, adjacent to the Saint John Regional Hospital. Lark is not only investing in health tech buildings but healthcare companies as well. The district houses HealthTech Connex, which Lark Group co-founded. The brain technology company has developed a first-of-its-kind portable and cost-effective device that measures brain waves. The technology is being applied in concussion, dementia and PTSD as well as in brain performance optimization. “We have a clinic on the second floor that treats traumatic brain injury. So that’s all new and exciting. We have 65 employees in that company,” says Fisher, noting his son is the CEO of HealthTech Connex and serves as senior vice president of Lark Group. Other current projects include Dogwood Lodge, a 150-bed longterm care home; Mulgrave School in West Vancouver; a seven-storey building for Biotech company Abcellera; and the Legion Veterans Village in Surrey. The Legion project is a two-tower complex offering support for veterans and first responders with both market housing and affordable homes. When complete in 2022, the $312 million project will be

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September/October 2021

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Connections City Centre 2 is a 185,000 square-foot, 12-storey LEED Gold certified office building

home to Canada’s first Centre of Clinical Excellence for veterans and first responders with post-traumatic stress disorder. “The new Legion is replacing the former Legion branch on the site. It will make a big difference,” says Fisher. “We are proud to be working on this highly anticipated project to provide much needed health care programs and services, as well as affordable housing for veterans, first responders and seniors in our community.” Another high profile project is the 134,000 square foot North Surrey Sport and Ice Complex. It features three ice arenas and venues for lacrosse, basketball and trade shows. Highlights of the design include a heavy timber roof, glulam trusses, prefabricated panelized wood and the building exterior is wrapped with First Nation artist Trenton Pierre’s public artwork. The facility received a 2020 VRCA Silver Award of Excellence and a 2021 Facility Excellence Award. “The facility is a beautiful complex,” says Fisher. “Our team and the city worked well together to deliver an excellent project for the community.”

In the last decade, the company has also expanded into tenant improvements including several projects within the three City Centre buildings, and Surrey Memorial Hospital. Lark most recently completed the 13,000 square foot office tenant improvement fit-out for the Independent Contractors and Business Association (ICBA). Lark has been an ICBA member for 40 years and Fisher is a life member. Of course, a successful company is only as good as its people, and Lark takes great pride in treating their employees like family. “We strive to look after our people and operate safely — our purpose since day one and it’s paid off,” he says. “Safety is our number one priority with the goal to have zero lost time accidents.” The ongoing pandemic has added another layer of complexity to safety but like most of the industry, Lark effectively implemented health protocols so sites could remain operational. “Fortunately our industry took the lead and was able to keep going,” says Fisher, who was in the office every day. “Our safety people and management group did an exceptional job of keeping things going safety. The main concern going forward is supply chain delays. It’s tough to get supplies and tough to get workers.” As for retirement, Fisher says maybe in the next five years. “My health is excellent and I enjoy what I’m doing. Never a dull moment,” says Fisher, who stays active skiing and golfing. He stopped playing hockey, reluctantly, four years ago.

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Langley_Concrete_october_2021.indd 1 CONSTRUCTION BUSINESS

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2021-10-14 5:16 PM

Feature Project

A GAME

CHANGER BY CHERYL MAH

Photography by Ishot

September/October 2021

CONSTRUCTION BUSINESS

striking new mass timber commercial building in North Vancouver is a showcase of what is possible when a project team aligns on a vision. PH1 is a three-storey office building combining Passive House (PH) performance with modern mass timber construction. The 7,500 square foot project consists of a restaurant on the ground floor and two floors of office space above. It will be one of the first certified Passive House commercial project of its kind in North America, and the first certified building with a full commercial kitchen in the world. Designed by Hemsworth Architecture, the ambitious project makes a statement at the foot of Lonsdale Avenue, while complementing the surrounding retail, galleries, amenities and restaurants. Clad in dark grey brick, the building evokes a contemporary industrial feel, reflecting the warehouse typology and waterfront of the Shipyards District. “When we came up with the design of the building, the thought was to reinterpret the existing warehouse typology and use mass timber, which is exposed to create a more natural feel,” says John Hemsworth, principal of Hemsworth Architecture. Construction took 11 months with Naikoon Contracting achieving substantial completion in April 2021. Naikoon self-performed all the mass timber structure and envelope panels. Located in the heart of Lower Lonsdale, the building is squeezed onto an extremely challenging zero lot line site. Surrounded by a building at the back, an alley on one side and streets on the other two sides, the tight site complicated design and construction. “This project was technically challenging on a number of levels,” says Joe Geluch, president of

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Naikoon Contracting. “It was a tight logistical site — a 25x12 city lot on the corner of Lonsdale and Carrie Cates Court with lots of pedestrian and vehicle traffic. Just working through the logistics of building on an infill site like that one was complex.” The project sits on a raft slab-on-grade foundation and features an exposed glulam post and beam structure with five-ply cross laminated timber (CLT) roof and floor panels, and five-ply CLT shear wall panels, all manufactured in British Columbia. The decision to use mass timber and a prefabricated system allowed the superstructure to be erected in only 10 days. “We leveraged virtual construction and digitally constructed this building several times in various softwares before coming to the jobsite and executing it,” says Geluch, noting the project also required juston-time delivery of materials. Naikoon used a nearby lay-down yard to apply the membrane and insulation on the CLT for the north wall panels, which act as a sheer wall adjacent to the neighbouring building. The 10 ft x 38 ft (3m x 11.7m) wall panels were prefabricated to nearfinish (weather barrier, clips, and hat-tracks). Once the panels were in place, the only component of the wall assembly that had to be installed on site was the finished metal cladding. Prefabrication eliminated the need to have zoom-booms and scissor lifts on site, minimizing disruption in the busy neighbourhood. “Other benefits were faster and quiet construction and greater safety,” notes Geluch. “We removed a lot of the work that is typically done off booms and scaffolds.” Building a mass timber building to PH standards required several unique design and construction solutions, most notably the CLT firewall. A

September/October 2021

building’s party wall on a zero lot line site is typically concrete and required to be non-combustible, according to Hemsworth. “There was no template or precedent to build that party wall between the two buildings. We had to come up with unique details and assemblies,” he says. “It was the perfect solution for that site.” In this case, the City of North Vancouver approved the use of CLT for the wall as an alternative solution due to the inherent fire-resistance properties of wood. The fire-resistance rating is achievable because mass timber chars, forming a protective layer while also providing seismic lateral strength. “This is one of the first exposed CLT firewalls on a zero lot line application,” notes Geluch. “Creating a CLT based envelope facade panel that was then slipped between the two buildings was one of the biggest technical challenges.” Another major challenge was designing a large commercial kitchen to Passive House standards in a small building. Hemsworth noted they spent over a year working with the Passive House Institute and consultants modelling the restaurant to “make the math work on the PHPP” (the building energy modelling software used to design a Passive House building). “This was an extremely difficult project. Building it to Passive House standards was very complicated, considering the ground floor is going to be a restaurant. We also had to deal with the constraints of the site. For example, it was impossible to get parking underneath the building. This is the first project with zero parking in the city,” says Hemsworth, adding the building also had to be lifted eight inches to deal with the floodplain. The project was completed during the pandemic, which added another layer of complexity. Geluch

Feature Project

PH1 features an exposed timber structure, showcasing a modern and sustainable alternative to conventional construction.

says after going through the initial necessary health and safety protocol changes, there were some supply chain issues. “The glazing from Europe was delayed 16 weeks. We managed to get through that but it did impact our schedule,” he says.”We’re fortunate to have one of the more experienced teams in Canada with Passive House, so we were able to work through the challenges.” While the city was supportive of this project, both Geluch and Hemsworth say the development approval process needs significant improvements. “Overall, the time frame for going through the development process on this took several years to get to the construction phase. I think municipalities need to find ways to fast track these types of projects,” says Geluch. Hemsworth adds the industry has the technology and experience to undertake more mass timber projects and more progressive projects, but “the biggest barrier is the bureaucracy.” For their achievements on the PH1 project, Naikoon Contracting was recognized with a 2021 VRCA Silver Award of Excellence in the general contractor category. “We’re ecstatic,” says Geluch about the award. “This is such an important project — a game changer for us — and to have it be recognized in this way is exciting. It’s amazing to have an owner and architect with the vision to push the envelope with this building.” He credits early team collaboration as key to the success of this project. “A transparent, integrated contracting model from the outset is necessary for success,” says Geluch. “If we’re going to prefab a building of

any type, the delivery model needs to be an integrated team approach.” Naikoon has worked on a number of leading sustainability residential projects, but this is their first Passive House commercial project.

“This is now an iconic piece of architecture, and a legacy project for the owner,” says Geluch. “We look forward to more owners committing to building similar and larger projects like this with mass timber and reducing our embodied carbon impact.”

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September/October 2021

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Open Shop

The Right to A Secret Ballot BY CHRIS GARDNER

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s we struggle to emerge from the dislocation and disruption caused by COVID-19, workers are looking for choice, f lexibility, and fairness in the workplace — in short, a better deal. But if there is one thing we have learned during the global pandemic, it’s that no one wins from polarization and pitting one group against another. There is no doubt that important elements of our democracy have been tested and come under enormous strain in recent years. The secret ballot has been the foundation of democratic rights since ancient Greece. Aristotle and others describe the use of bronze ballots and voting privately, and archaeologists have found dozens of them — including some inscribed “official ballot” in Greek. Athenian voters even used a screen to restrict the view of others when they voted. More than two millennia later, activists and some union organizers are trying to convince government to scrap that fundamental right in certification votes in the name of giving workers a greater voice in the workplace. Even before the mail-in ballots were counted and the final results of last fall’s British Columbia provincial election certified, an executive from one of the biggest unions in the country was urging the new majority NDP government to strip the secret ballot from B.C.’s labour code — a right that workers have enjoyed for over two decades in this province. It’s difficult to understand why anyone would think taking away a basic democratic right, like the ability to cast a vote in private, would somehow be “pro-worker.” The secret ballot ensures that neither employers nor unions is able to coerce individuals — workers get to have their say free from external pressures. What worker wouldn’t want to be able to cast their vote free from undue influence or pressure from one side or the other? There is nothing more fundamental to our democracy than the secret ballot — whether it’s when we elect governments or members to local community associations, it is the secret ballot we rely on to provide assurance that the vote is free from manipulation by any interested party. Working men and women deserve no less when they are deciding to join a union. In B.C., certification votes are like the regular local elections Canadians have become accustomed to. There is a specified period of time for careful consideration; strict rules on how campaigns work and how voters can be contacted; and an independent, neutral thirdparty agency overseeing it all. It’s fair and it protects a person’s ability to choose.

Open Shop

For those who believe that aggressive managers might somehow manipulate the system — employers face automatic certification for violating these rules. In 2018, an independent panel appointed by the B.C. NDP Government recommended that the secret ballot remain part of the labour code in B.C. The panel found that the secret ballot is “most consistent with our democratic norms, protects the fundamental right of freedom of association and choice, and is preferred.” The alternative proposed by activists and some union organizers is a card-check system that is notoriously open to abuse, where individuals can be pressured into casting a vote in a way they otherwise would not. It raises the spectre of smoked-filled back rooms from another era and it goes against every principle of openness, transparency, and worker choice that is defining the modern workplace. On its website, the Labourers’ International Union of North America (LiUNA) highlights the problems inherent in a card check system — organizers making “false promises”, workers being “tricked into signing cards”, and concludes with a strong

“Stripping workers of the secret ballot only serves to weaken the rights of workers.” warning to its union members, “do not sign anything.” The decision to support joining a union is a deeply personal one, and not one individuals should have to make with others watching to see if they sign a union card, or when a union card is put in front of them on their doorstep. It should be a careful decision, made with the protection a secret ballot provides. All Canadians should be concerned about activists and governments seeking to curtail the democratic rights of workers and fairness in the workplace. Stripping workers of the secret ballot only serves to weaken the rights of workers. We often hear from elected officials when they are first elected, that they will “govern on behalf of everyone’ and will “listen to

We Care. We Help.

good ideas no matter where they come from.” Well, the secret ballot for workers is not only a good idea, it’s a great idea, and preserving it is one way for elected officials federally and in every province to demonstrate their commitment to fairness, transparency and basic democratic principles when it comes to workers and the choices they make in the workplace. Ultimately, we cannot hope to succeed in building the modern, more flexible workplace of the future that is defined by greater choice and better opportunities for individuals, when the starting point is stripping democratic rights from people. Chris Gardner is president of the Independent Contractors and Businesses Association.

1-888-437-1100 www.wmbeck.com info@wmbeck.com September/October 2021

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SPECIAL ADVERTORIAL FEATURE

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The Construction Industry Training Network (CITN) connects new and experienced workers and employers to recruitment and training programs offered by both our members and external partners.

The CITN, a not-for-profit collaboration between contractors, associations, progressive unions, and training providers, offers services and support to contractors and workers and is the central hub for anyone looking to get connected to the construction industry in Western Canada and beyond. CITN is involved with more than 85 per cent of the construction projects in B.C.; our network employs and trains the vast majority of the workforce in the province. Looking to start or continue an apprenticeship while you’re in between jobs? We have services in place to help apprentices succeed. For workers looking to go through a formal apprenticeship, we offer far more than just the tracking and reporting of hours. We will indenture the apprentices under CITN, and ensure apprentices are ready and prepared to attend school. We’ll also provide workers information on tax credits, bursaries and grants they may be eligible for, news tailored to their specific trade, and updates on training opportunities. Looking to work on some of the large construction projects currently underway in BC, or coming off of your latest job? We can connect you with employers and put your resume in front of the

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people making the hiring decisions through our new Employee Connect employment portal. CITN also offers skills upgrading through our massive network of preferred training providers, resume-building support for workers coming off of major projects, and assistance with navigating some of the trickier aspects of the industry. “Knowing how to find all of this information and how to access the right services at the right time can be very challenging,” says CITN training coordinator Kerry Vital. “CITN and its partners have come together to help employers and workers navigate the industry. If you don’t work in this space every day, you may not know what’s available out there but one call to us and we can point you in the right direction.” Are you an employer looking at developing an internal recruitment and training program in your workplace? CITN can support you with this and assist you with curriculum and policy development. CITN works closely with the BC Road Builders and Heavy Construction Association, independent unions and employee associations, the Independent Contractors and Businesses Association (ICBA), and Merit Canada. And the network is always growing! Members of these organizations have access to CITN’s training team free-of-charge; BC Road

September/October 2021

Builders even has a dedicated course calendar focusing on courses for the roadbuilding and heavy construction industry. “We have been pleased to partner with BC Road Builders to ensure their members have the quality training they need, anywhere in the province,” says Vital. “We look forward to continuing to grow the partnership in 2022.” Private training sessions tailored specifically to the company’s needs are also available for members and non-members alike. “We can organize any course, anywhere in Western Canada, online or in a webinar format,” Vital says. “We want to ensure that workers in the Canadian construction industry receive the education they need to progress in their career, whether they work for a small or a large company. Need a course delivered right on the job site? We’ll bring the training provider to you and make sure the training suits your schedule.” CITN also partners with groups that work with Indigenous individuals, youth, new immigrants, people experiencing workforce challenges, and traditionally under-represented groups to connect them with the construction industry and give them services and support. “We want to promote the trades as a career and as a valuable pathway to employment,” says Vital. “People who are experiencing challenges may see construction as their only career option, but we are here to tell you that the construction industry is far from a last resort; it should be a first choice for people as a career no matter your circumstances. If you are looking to get plugged into the construction industry and unsure of how to do it, we are a great first phone call.” Even during the economic shutdown in 2020, CITN was still able to offer the high-quality service that our members expect. “Construction is an essential service in B.C. so our members didn’t stop training or hiring,” Vital says. “It was imperative that we pivoted quickly to virtual learning, interviews over Zoom, and safety protocols that protected our instructors and participants when virtual options were not available.” If you’re a contractor with recruitment and training challenges, a worker looking to get connected to the next project or someone who wants to connect to our industry through training and employment, join the network. To learn more about the CITN, visit www. trainingnetwork.ca or email info@trainingnetwork.ca.

Open Shop

Modernizing Training Strategies BY TODD CUMISKEY

n a global basis, the surety market was valued at US$ 16.04 billion in 2019 and is projected to reach US$25.18 billion by 2027. It is expected to grow at a compound annual growth rate of 6.4 per cent during 2020-2027. Construction company owners, by nature, are problem-solvers. They see a challenge, and they work to overcome it. It’s in their DNA and they bring it to every aspect of their business — including recruiting, retaining, and training their workers. With Canada going over the demographic cliff of an aging workforce and industries from restaurants to healthcare to construction all feeling the shortage of workers, our builders are desperately looking for innovative ways to attract and recruit young people to the construction trades. Necessity remains the mother of invention, even more so in construction. My association, the Independent Contractors and Businesses Association (ICBA), teamed up with six British Columbia commercial painting companies and developed a 14-week distance learning program for working painters looking to challenge for their Red Seal designation. This has spread across the country, as several provincial Merit associations — and their members — have signed on. LMS Reinforcing Steel Group, the largest supplier of rebar in British Columbia, sponsors more than 200 apprentices, and launched its own LMS Academy to support the training of their workers toward Red Seal accreditation. When the pandemic hit, Pacific Vocational College, a leader in training plumbing and pipe-fitting apprentices, accelerated its interactive “distance live” model of training. Among its most recent innovations is the use of scale models of plumbing equipment that it produces on its 3D printers and sends out to apprentices — enabling them to do a code-compliant set up of an apartment’s bathroom plumbing on their kitchen tables. At ICBA training, we pivoted to a comprehensive online delivery model, and 2020 turned out to be a record year for our professional development department as people from across Canada were able to access top-notch training from their own communities, rather than having to travel to another city. We’re taking the best of those new and innovative practices, offering more courses online than ever before, and adding live, in-person training back as COVID-19 health regulations allow. Merit Canada — through the Merit associations in Saskatchewan, Manitoba, Ontario, Nova Scotia, and ICBA in B.C. — has made a similar, significant commitment to support training the next generation of construction workers. Together, we offer hundreds of courses online, on-demand, and in live video formats. The private sector is doing its part. But unfortunately, government isn’t pivoting as quickly. Government has a significant role to play in supporting the “soft infrastructure” for our economy; that is, skills development and worker training. Ensuring that effective training is provided in a fair and efficient manner so that workers are “skilled up” for available jobs is critical. It is also important that every effort is taken to provide today’s workforce with relevant skills required now with a clear line-of-sight to the future. This is best accomplished through multiple pathways providing choice for students to learn in-school, on-site, and online. In the private sector, COVID-19 has proven that flexible program delivery is essential and must become the new normal. Now is the time for government to follow suit. Take British Columbia, for example. For a dozen Red Seal trades, there is only a single school in all of B.C. This means workers have to leave their homes, jobs and families, and come to the expensive Vancouver area to train. While Pacific Vocational College, LMS, ICBA, and other groups have pivoted to online and multi-site learning, many trades schools cling to their old way of training. And that’s if the apprentice is lucky enough to get a training seat. For many apprenticeship programs, the waitlist to get into schools is generally a year, often two, and sometimes more. Imagine the look on a young worker’s face when you

tell them that it might take them a decade to complete their four-year apprenticeship program. Limiting access to these training opportunities has nothing to do with improving the quality of work — Canadian construction projects are designed by the best in the world, and are highly regulated, permitted, and thoroughly inspected. We should be giving as many young people an opportunity to get into the trades as possible — not holding the door shut through waitlists and unnecessary barriers to entering our industry. Government should be encouraging workers to undertake apprenticeship training wherever they live and work. They should also be broadening credential recognition and supporting multiple pathways for apprenticeship training and skills acquisition. To do this, trades schools need to continue to advance online and distributed methods of apprenticeship and training. My association, ICBA, is the single largest sponsor of trades apprentices in B.C., at nearly 1,400 (we sponsor the second-most women and Indigenous apprentices, as well — and we have a plan to get to number one in those categories). And open shop companies, like the ones we represent, sponsor 82 per cent of all apprentices in the province. Again, the industry is doing its part — we just need government to do theirs, by opening more training seats, investing in the modernization of content delivery, and supporting construction employers and industry associations in their training efforts. As Canada emerges from the COVID-19 pandemic, choice, and flexibility have become the buzzwords for employees who are now being forced to reimagine the workforce of tomorrow, today. Whether it’s on the jobsite or in the office, workers are looking for the choice and opportunities that come from more flexible work and training arrangements. They’re meeting the challenge — now government needs to, as well. WM_ICBA_QuarterPageAd_2021(1).pdf 2021-10-13Contractors 11:39 AM Todd Cumiskey is vice president, workforce development,1 Independent and Businesses Association.

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September/October 2021

CONSTRUCTION BUSINESS

Wood

Excellence in Wood Design Pavilion at Great Northern Way

Skeetchestn Health Centre

Tsleil-Waututh Administration and Health Centre

SoLo

he Wood WORKS! BC Wood Design Awards honours leadership and innovation in structural and architectural wood use. There were more than 50 nominations in nine categories for the 2020 awards — with nominations from all over the province, as well as some international project submissions from as far away as Taiyuan, China. All projects illustrate distinctive and unique qualities of wood such as strength, beauty, versatility, and cost-effectiveness while showcasing a variety of wood uses. Winners in the wood design categories are: • Residential Wood Design: Perkins & Will for SoLo in the Soo Valley, B.C.

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• Multi-unit Wood Design: Studio 531 Architects for Cubes in Courtenay, B.C. • Environmental Performance: Public Architecture and Communication for UBCO Skeena Residence in Kelowna, B.C. • Commercial Wood Design: Proscenium Architecture and Interiors for MEC Vancouver Retail Store in Vancouver, B.C. • Institutional Wood Design: Small: dk Architecture for the Skeetchestn Health Centre in Savona, B.C. • Institutional Wood Design: Large: Lubor Trubka Associates Architects for the TsleilWaututh Administration and Health Centre in North Vancouver, B.C. • Western Red Cedar: HDR Architecture

September/October 2021

Associates for the Lakehouse in Summerland, B.C. • Wood Innovation: Perkins & Will for the Pavilion at Great Northern Way in Vancouver, B.C. • International Wood Design: Michael Green Architecture for the Catalyst Building in Spokane, Washington, USA Two Jury’s Choice awards were also awarded. The first award went to Waymark Architecture for the Charter Telecom Headquarters in Victoria, B.C. The second Jury’s Choice award went to Francl Architecture Inc. for the West Village District Energy Centre located in Surrey, B.C.

Wood

The Mass Timber “Wave” BY CHERYL MAH

Walmart is building a new home office campus in Bentonville, Arkansas. The project will use 1.1 million cubic feet of CLT, manufactured by Structurlam Mass Timber.

orth America is experiencing a resurgence in the use of wood in construction with particular interest in building taller with mass timber. “Obviously there’s a mass timber wave — some might even call it a tsunami — that’s rolling across not just North America but Europe as well right now. But is this the flavour of the day or something that has staying power,” said Paul Fast, founder of structural engineering firm Fast + Epp. Fast was a speaker at AIBC Confab 2021 where he highlighted some milestone wood projects over the last several decades and discussed several factors that will influence mass timber use moving forward. Wood buildings are not new, he said, noting most of Gastown’s older buildings have structures made of wood. Many old buildings feature timber trusses and timber decking on the roof. He then went on to discuss the timeline of the introduction of different engineered wood products such as glue laminated wood, TJI and laminated veneer lumber. “When glulam hit, all of a sudden we could span longer distances…beams up to 60-100 feet long. It changed everything. It was revolutionary,” said Fast, citing the first Safeway stores in Vancouver as good examples of glulam use. The widely publicized The Case for Tall Wood Buildings by architect Michael Green and Eric Karsh of Equilibrium Consulting was a major step forward in popularizing mass timber construction. The study encourages architects, engineers and

designers to push the envelope of conventional thinking by demonstrating that wood is a viable material for tall and large buildings and exposing its environmental and economic benefits. “I think we can say with quiet pride here in B.C. that a lot of the interest in mass timber was generated not in small part to some of the work by B.C. architects,” said Fast. Since then, many tall wood buildings have come along including The Wood Innovations and Design Centre in Prince George and Brock Commons Tallwood House at UBC. Fast went on to discuss some current projects including parkades in Switzerland and Germany, which were constructed entirely with glulam post and beam framing and CLT floor panels. “So it’s not beyond the realm of possibility to construct parking structures with mass timber,” he noted. Walmart is building a new home office campus (18 buildings) in Bentonville, Arkansas. The project will use 1.1 million cubic feet of CLT, demonstrating their corporate commitment to green building design. Construction of the first building is taking place this summer, said Fast, noting that the massive project also led to Walmart investing in B.C. based Structurlam to open a CLT plant in Arkansas to supply the material. The U.S. has nearly 600 projects in design using mass timber and there will be more, he said. As for the future, Fast touched on five factors that will influence mass timber construction: manufacturing capacity, technological change, political, nature and cost.

“Manufacturing capacity is in good shape to meet demand that’s going to come in the next several years,” he said, adding code changes will also have a positive impact. “We will see more code changes that will make it readily acceptable to use mass timber in taller larger buildings.” Technological advancements for improving fire resistance for wood buildings could also be key. “Right now we have to rely on charring to achieve 2-3 hour fire ratings for going tall with mass timber. If in fact, we find other ways to treat the wood so we don’t have to increase the volume of wood that we use to achieve those types of fire ratings — that will also improve prospects for mass timber use in the future,” said Fast. Carbon is the big question mark. Will there be mandated carbon levels by governments in the future? Concrete carbon capture research is taking place, said Fast, so if that really moves in a positive direction, that could have an impact on where mass timber goes in the future. “In B.C., there’s a drive in process to see more implementation of mass timber — that’s a mandate of the current government. There’s an advisory board in place to advise them on that direction,” said Fast, noting in his view B.C.’s Wood First Policy has “had very little bite particularly in design-build projects — no enforcement of that mandate.” But with the new mass timber advisory council, wood should be getting more serious consideration in every public building project.

September/October 2021

CONSTRUCTION BUSINESS

Wood

Wood Expands Design Options BY ROBERT CESNIK

provide a platform during construction and prefabricated sections can be manufactured off site, decreasing overall construction time. • Environmental Impact: Wood is a 100 per cent renewable carbon-sequestering resource. Sustainably sourced, timber can help reduce our carbon footprint. • Safety and Performance: In the event of a fire, treated wood slabs will char on the outside, but will not become structurally compromised. The naturally occurring insulating properties of wood can be used to its advantage, increasing the building’s overall thermal performance. • Reduced Structural Weight: Since wood construction weighs significantly less than concrete or steel construction, construction time and cost around setting the foundation can be saved. Top Left: Lakehouse, Summerland. Right: City Park Washrooms, Kelowna Bottom: Time Winery, Penticton

ith the advancement of engineering technologies and modern building techniques, the increasing capability of mass timber has expanded design possibilities. Since 2003, what started as an experimental material for HDR’s Penticton studio, mass timber quickly proved to be a viable material option. This is a look at why mass timber matters

WOOD’S POTENTIAL There are many good reasons to explore the full potential of wood as a high-performance building material and viable substitute to steel and concrete. Human migration towards city centres has triggered massive building booms all over the world. With stress on resources and space from rapid urbanization, new forms of green building construction must be explored. Mass timber construction offers viable eco-conscious solutions to the traditional multi-storey, concrete or steel, apartment blocks. In a world where the construction industry is responsible for 40-50 per cent of CO2 emissions, renewable ma¬terials, such as wood, can help mitigate the rate of global warming. Wood se¬questers carbon dioxide at a rate of 1-1.2 tons/ m3 of wood and has a relatively low manufacturing carbon footprint, compared to other materials. When sustainably sourced, mass timber can be harvested and replenished with fewer lasting environmental impacts. 18

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New engineering technologies and modern building techniques have advanced the capabilities of mass timber construction, particularly in mid and high-rise construction. Cross-laminated timber and glue-laminated timber are two main engineered wood production methods which have enabled significant vertical growth in mass timber construction. Cross-Laminated Timber (CLT) is made up of multiple layers of kiln-dried lumber which are alternatingly stacked perpendicular to one another, glued together, and pressed. The number of layers in a section is determined by the structural requirements of the panel. Load bearing uses for CLT panels include floors, walls, and roofs. Glue-Laminated Timber (GLT or Glulam) is a structural engineered wood element composed of kiln-dried and glued dimension lumber with the strongest laminations centered within the beam. The grain of the laminations run parallel to its length, increasing its strength. Glulam is often used for trusses, beams, and columns. According to APA, the Engineered Wood Association, “Pound for pound, glulam is stronger than steel and has greater strength and stiffness than comparably sized dimensional lumber.” Key reasons for using mass timber: • Speed of Construction: Easy to work with, timber is easily modified on site and produces little waste. The quick-assembly wood panels

September/October 2021

• Biophilic Design Benefits: Exposure to natural elements, such as wood, is known to have a positive impact on human well-being. The warmth and quality of exposed timber lends itself to the overall design of the space and saves on additional finishes.

40-STOREY REINFORCED WOOD OFFICE TOWER In 2012, as new technologies in CLT were introduced in British Columbia, we started looking into the potential for taller mass timber buildings. That year, our office participated in the NAIOP (The Commercial Real Estate Development Association) International Design Competition for the “Office Building of the Future”. We took our design competition entry as an opportunity to gain experience and test the limits with wood. The 40-storey wood office tower we created received Honorable Mention recognition for its design and provided us with knowledge and expertise in mass timber. What initially began for our team as an experiment in materials, quickly proved worthy of further consideration. As building technologies improve and demands for green buildings increase, opportunities to explore and push the boundaries of mass timber construction will only follow suit. Robert Cesnik is an associate at HDR Architecture Associates based in Penticton. He is a LEED accredited professional with more than 20 years of experience and particular expertise in residential, commercial, and hospitality facilities.

Skills Training

The Challenge of Change BY CHERYL MAH

hange is not easy. And women entering the male dominated construction industry know that better than most. Women are still facing systemic barriers to successful careers, representing only 4.5 per cent of the skilled trades and that number has barely changed in decades. Women and Indigenous people are leaving construction because they face discrimination or racism, said Irene Kerr during a session for the BC Centre for Women in the Trades’ Women Build BC conference. The president and CEO of BC Infrastructure Benefits Inc. was one of several speakers on an industry panel exploring challenges and best practices for the recruitment and retention of women in the skilled trades. “We’ve developed a program aimed at taking action against discrimination and racism on the jobsite, and to foster a more respectful work culture,” said Kerr. “We call the program respectful onsite initiative. The acronym ROI is intentional because we need to invest in people if we’re going to have a chance at change.” The crown corporation also has a priority hiring policy and site representatives — all tools that are used to assist, increase and sustain diversity on jobsites. “Never before has a union accepted within their collective agreement a priority hire mechanism — it’s unheard of but they’re doing so. That tells me their leadership knows that it’s time for a change,” she said, noting out of the 205 employees they’ve deployed on current public infrastructure projects, 15-23 per cent are women. Catherine Roome, president and lead executive officer at Technical Safety BC, shared good examples of how implementing diversity policies is not always enough and require follow up to ensure they are being carried out on the ground. “Change is hard even when you’re leading an organization and trying to create these pathways to ensure we have talented people move into the organization,” she said. “I think part of our responsibility as leaders is to keep checking that they are working and having the impact that we want.” Larry Richardson, Christian Labour Association of Canada’s B.C. training director, agreed, “We need to continue making that effort to realize that what we think is good is not good enough. We have to keep checking ourselves. I’ve been in the industry 50 years and haven’t seen a lot of change. That’s not good enough.” With the demand for skilled labour at an all-time high, there is a critical need for the industry to move forward collectively in meaningful ways to increase the number of women, and other under-represented groups.

“It’s the challenge of change. It’s not easy. Along the way there’s resistance…and there are misconceptions that need to be overcome,” said Kerr. “The other thing is everybody wants to see immediate results. But I think we have to recognize it’s a journey. It’s a marathon, not a sprint. We have to be very deliberate with our commitment.” The pandemic has also raised challenges with working women affected disproportionately, causing what economists are calling the “shecession.” Various labour reports show the number of women employed have declined significantly compared to men in the last year. “The pandemic has really enabled a new look at innovative practices about supporting people but also painted a stark picture about the [gender] gap and how much it’s widening in certain communities,” said Roome. “The pandemic [has] obviously adversely affected women, people of colour far more than any other demographic.” Role models, diversity training and mentoring opportunities were all cited as ways forward. Roome advised that women need to look for partners and allies and speak up (text, call, email) when they encounter barriers or obstacles. Kerr agreed, stressing: “you have people who want to break through the walls with you.” Driving change also means having the right company culture, which comes from the top and leaders must be “relentless in having the will to change the culture.” “We need to make inclusion a priority,” stated Kerr. “We’re very quick to invest in technologies

and materials and we should to advance the business. But we also need to invest in the people and have the patience to stay with the effort and watch it pay back.” A psychologically safe workplace begins with a feeling of belonging, and language plays an important role in signaling an organization’s openness to diversity and inclusion. “Do we call it manpower or workforce or team? A lot of times people don’t see themselves in an organization if the language doesn’t resonate with them,” said Rebecca Kragnes, Indigenous business relations manager at Bird Construction. Kragnes went on to cite safety as an example of what the industry is capable of achieving if the commitment is there, which can be similarly applied to recruiting women. “So twenty-five years ago, safety was new and a challenge to implement all the safety protocols on our sites. We should be taking the same efforts and the same focus on supporting diversity and inclusion as we do on safety. If we committed to that in the same way we’ve committed to safety… in 20 years, we would be at 50 per cent [women in construction],” she says. Kerr expressed her optimism by saying: “If one woman — tradesperson — brings along another woman, then so on, that would change the look of the trades…and give a woman a meaningful and lucrative career. To me, that is the human legacy of construction and what we’re trying to. We have to be deliberate about change and stay with it.”

September/October 2021

CONSTRUCTION BUSINESS

Skills Training

Women Face Wage Gap in Trades

emand for skilled trades in construction remains as high as ever. While other sectors have been hit hard by COVID-19 with shutdowns and layoffs, construction continues to scramble for workers. BuildForce anticipates a shortage of up to 82,000 skilled workers across Canada by the end of the decade. In B.C., the forecast shortage is 23,000 workers. The number of women in construction is increasing slowly. But a report finds that women in the skilled trades, on average, earn about half what men do. The labour market report (How much do they make? New Evidence on the Early Career Earnings of Trade Certificate Holders) from the Labour Market Information Council (LMIC) and the Education Policy Research Initiative (EPRI) analyzes earnings from Statistics Canada’s Education and Labour Market Longitudinal Platform (ELMLP) with a focus on those with certification in the Red Seal trades, which have common national standards and account for 75 per cent of all those who gain certification. Across all Red Seal trades, in the first year following certification, women earn on average 47 per cent of what men earn, and 46 per cent eight years out. Individuals in Red Seal trades earn, on average, $64,000 in their first year, compared to $55,500 for non-Red Seal trades. Those certified in ‘mechanical trades’ earn the most in their first year ($76,500) followed closely by ‘electrical trades’ ($74,200). Women represent less than 10 per cent of all Red Seal trade certificate holders, and within each category of certificate holders, women account for less than 2.5 per cent. “These strong earnings patterns demonstrate how skilled trades can be an attractive career path for many,” said Steven Tobin, executive director at LMIC. “Our report acknowledges the sizeable differences in pay between men and women which, among other factors, may contribute to why few women participate in the trades.” Other key findings from the report include: Red Seal trades offer leg up on earnings.

Individuals in Red Seal trades earn, on average, $64,000 in their first year, compared to $55,500 for non-Red Seal trades. Those certified in ‘mechanical trades’ earn the most in their first year ($76,500) followed closely by ‘electrical trades’ ($74,200). Women are over-represented in the lowestearning trade category. Women represent less

than 10 per cent of all Red Seal trade certificate holders, and within each category of certificate holders, women account for less than 2.5 per cent. The exception is ‘other’ — the lowest earnings category, which includes hairstylists, cooks and bakers — where they make up over 65 per cent, and earnings start at $31,800 in the first year. 20 CONSTRUCTION BUSINESS

Gender earnings differences hold even within the same broad trade category.

When looking at broad trade categories, the largest earnings difference between men and women is in the ‘other’ category, where women earn 54 per cent of what men earn. The lowest earnings gap is in the ‘mechanical trades’ category, where women earn 89 per cent of what men earn. People who complete apprenticeships have higher earnings. Findings show apprenticeship

completers earn approximately 9-10 per cent more than trade qualifiers after certification, starting at $65,600 in the first year.

Men with trades certificates have some of the highest earnings. Women with trades

certificates have similar earnings ($31,500) to those with college-level certificates ($32,500) and diplomas ($32,100) in their first year following certification, but less than bachelor’s degree graduates ($39,600). Meanwhile, men with trades certificates earn more ($70,500) than those with college-level certificates, diplomas and bachelor’s degrees ($37,200, $40,500, and $42,800) in their first year following certification/graduation, but the

September/October 2021

gaps narrow in the following years, especially with bachelor’s graduates. These are, however, overall averages, and earnings vary widely across trade categories and fields of study, as well as across individuals within each specific certification. “By providing new information on the early career earnings of those who obtain certification in the skilled trades, our research can help individuals make critical training, education and career decisions, especially when these findings are placed alongside our previous study on the earnings of post-secondary education graduates” said Ross Finnie, professor at the University of Ottawa and director of EPRI and lead author of the report.

Skills Training

Make a Commitment to Recruiting Talent BY CHRIS ATCHISON

y now everyone in the construction industry in B.C. knows that the provincial government considers us an essential service. This has been an official designation during the pandemic and one that enabled our workforce — over 219,000 workers from more than 25,000 companies — to keep working when many other British Columbians could not. Construction contractors and workers are essential for two simple reasons: 1. We build and repair the environment that keeps people safe and the economy working. Without us there are no homes, hospitals, schools, government buildings… 2. We’re too big to stay home, contributing more than 9 per cent of provincial GDP. It’s been validating for many in our industry to receive this formal recognition, and the feeling of pride that came from the designation was heightened by the way we responded to the COVID-19 threat. The industry outdid itself. We were safe, collaborative, innovative, and effective. We kept building, and we kept earning. Yet here’s the friction: in the midst of this generational opportunity the construction industry still struggles to attract and retain top talent. We’re still projecting to have 11,000 more jobs than workers in our industry between now and 2030. That’s a 20 per cent decrease in the “gap” over the last five years, but remains a significant shortage. Apprenticeship programs continue to attract workers but struggle to keep them. Completion rates hover in the 50 per cent range, lower for some demographic groups. Our workforce is still 94 per cent male, mostly white, and aging out. Construction pays higher wages than hospitality, retail, and other industries that cater to entry-level workers. It offers careers, not just jobs. Many a journeyperson has gone on to own a business and build an empire. Take a look at the luxury cars, fishing boats, and private planes in your town and who owns them. Chances are, it’s someone working in our industry. Technology, climate change, globalization, smart building, green building… all of it should be calling to our top talent. The opportunity to work outdoors, move from project to project, work in teams, be in a challenging physical environment as well as an intellectually stimulating one, creates a lasting and visible legacy for others to share…all of it should be calling to our top talent. As Canada prepares for post-pandemic recovery, infrastructure investment will play a central role. That means building. That means work, careers, opportunity. The same is true for developed countries globally, from the US to Britain and across Europe and Asia. Again,

this should be tempting to our top talent. It’s a generational opportunity. What is holding them back? Why aren’t the resumes flying in? Two reasons: our culture is unwelcoming and our brand stinks. Yes, I’m sounding negative but I’m getting your attention and that’s what I’m after. Everyone who works in construction has an urgent responsibility to ensure that culture change starts with them, whether it’s on the jobsite or in the head office. Make a real commitment to engaging with and supporting a younger workforce. They expect different things and if you’re complaining about that then you’re just as unrealistic as you think they are. Many companies are leading the way to culture change by focusing on the importance of mental health, behaviour change, training and mentorship programs, living wage commitments, benefits, and other important initiatives. If you’re ready to get started or already along, partner up with the Builders Code: it’s a free and easy way to make a baseline statement about what you expect from your employees. No bullying, hazing, or harassment. Actively support apprenticeship and training. Be a mentor. Get a mentor. Connect to others. Make sure you have a competitive benefits program — if you don’t, check out the BCCA Employee Benefit Trust, built by industry for industry. And when you do these things, let people know. Boast about it on your website and in your job postings. Making the commitment is important but if nobody knows about it, then you won’t reap the benefits quickly enough. Our industry has an obligation to itself to figure this out. If we don’t, government will

try to do it for us. That’s happening already with B.C.’s Community Benefits Agreement and the new skilled trades certification requirement. These policies reflect a perception that our industry needs to be marshalled. B.C.’s new Skilled Trades Certification (also known as Compulsory Trades) system will require all workers in selected trades to be either registered apprentices or certified journeypersons to work in their trade. BCCA has been at the table with government and other industry representatives to make sure that all sides are heard in the pursuit of a fair and balanced outcome. We have amplified the government’s outreach across industry to ensure that contractors across all labour groups add their voices, and will continue to advocate on industry’s behalf to find the balance that supports diversification without aggravating the existing workforce shortage. As for the Community Benefits Agreement — in fact, a Project Labour Agreement — it has been applied to a handful of major projects and rolled out more slowly than feared. But watch for a CBA “light” and other social procurement to proliferate throughout our sector as all methods will force contractors to diversify for public project work, or pay a price. Literally. BCCA offers really powerful services for construction employers looking to find and retain talent. There are lots of great programs out there. But the bottom line is that your company has to realize its role in culture change. Be proactive, take the initiative, and build the company — and industry — that the future demands. Chris Atchison is president of the B.C. Construction Association.

September/October 2021

CONSTRUCTION BUSINESS

Legal File

Validity of Claim of Lien BY CHARLES BOIS AND ANDREW HEFFORD

he British Columbia Supreme Court recently considered whether a subcontractor’s claim of a builders lien was registered within the prescribed time limits in British Columbia’s Builders Lien Act. What makes this case particularly noteworthy are: (i) the court’s findings regarding the relationships between the subcontractor, general contractors and the owner; (ii) the issue of whether the head contract had been terminated or assigned; and (iii) the subcontractor being awarded damages against owner for unjust enrichment. In Hans Demolition and Green Oak (West 7th) Corp., 2021 BCSC 1472 (CanLI), the court reached two important conclusions regarding the nature of the contractual relationships formed between the owner and general contractor, and those between the general contractor and subcontractors. First, the court indicated that subcontractors have a responsibility to be diligent in understanding the status of the general contractor with whom they have contracted. More importantly, the subcontractor should be aware of the status of the head contract between the owner and the general contractor and must protect their rights by seeking their available statutory remedies in a timely manner. The second conclusion, given the unique circumstances of this case, is that courts may find that owners who choose to act contrary to the traditional contractual hierarchy between owners, general contractors, and subcontractors and engage directly with and provide instructions and assurances to subcontractors may find themselves liable to such subcontractors under the doctrine of unjust enrichment.

BACKGROUND Hans Demolition & Excavation entered into a contract with the owner/developer, Green Oak Development (West 7th) Corp. in April 2015, for the removal of trees and hazardous materials from the property. Green Oak directed and provided instructions to Hans Demotion. In November 2015, Green Oak then entered into a construction contract with Webster Development (Webster Head Contract) and Hans Demolition subsequently entered into a subcontract with Webster Development to complete the removal of hazardous material. As such, the traditional head contractor and subcontractor relationship had been established. However, during the course of the construction, Green Oak had significant problems with Webster Development’s performance and regularly engaged in direct communication with Hans Demolition regarding its work. In September 2016, Green Oak terminated the Webster Head Contract and entered into a new contract with Kindred Construction for the completion of the construction. Although Hans Demolition argued that it was not provided clear notice that the Webster Head Contract had been terminated, the court found that Green Oak did inform Hans Demolition that due to delays and the 22

CONSTRUCTION BUSINESS

condition of the worksite, Green Oak had decided to award the rest of the work to Kindred. Hans Demolition’s invoices for work performed under the subcontract agreement with Webster Development went unpaid. As a result, Hans Demolition filed a claim of builder’s lien in February 2017, several months after the termination of the Webster Head Contract, for work performed in 2016 and commenced the requisite action to enforce the lien claim. Hans Demolition also sought damages against Green Oak on the basis that it had been unjustly enriched by the work performed by Hans Demolition.

OUTCOME The Builders Lien The Builders Lien Act provides

that, where there is a head contract, claims of a lien must be registered within 45 days of the head contract being completed, abandoned or terminated. Hans Demolition argued that the Webster Head Contract had been assigned to Kindred, that it had not been given notice that the Webster Head Contract had been terminated and that its lien was filed in time. The court rejected these arguments and found that the evidence was that Green Oak had terminated the Webster Head Contract and entered into a new head contract with Kindred. As a result, the court held that the claim of lien registered by Hans Demolition was invalid since it was filed more than 45 days after the Webster Head Contract was terminated. In reaching this decision, the court noted that while other provincial lien statutes require owners to publish a notice when the head contract is terminated, there is no such requirement in the Builders Lien Act. The court went on to suggest that the lack of such notice is also a “commercial reality” as owners may not know the identity of subcontractors working on a project. Furthermore, the court concluded that once Hans Demolition became aware that Kindred had been retained by the owner to complete the project, it should have inquired into whether the Webster Head Contract had been assigned or terminated. The court went on to state that Hans Demolition was or should have been aware, that their contractual and business arrangements with Webster Development would be affected by the owner’s engagement of Kindred and that Hans Demolition had a responsibility to ensure that it took steps to protect its interests and file a lien for any outstanding invoices within the prescribed 45 day period. Unjust Enrichment The court went on to consider whether Hans Demolition was entitled to damages under the doctrine of unjust enrichment. A plaintiff seeking damages in unjust enrichment must establish that there has been: 1. an enrichment to the defendant; 2. a corresponding deprivation to the plaintiff; and 3. the absence of a juristic reason for the enrichment. Subcontractors are not generally awarded damages for unjust enrichment against an owner, as there are

September/October 2021

juristic reasons that operate to deny such damages. These reasons include the traditional contractual framework between the owner and head contractor, and those between the head contractor and the subcontractors, as well as the remedies available to the subcontractor in the Builders Lien Act. The absence of a contractual relationship between the owner and subcontractor has been accepted by the courts as a juristic reason for denying a subcontractor recovery under the doctrine of unjust enrichment. In awarding Hans Demolition damages for unjust enrichment, however, the court indicated that the facts in this case were unique. The facts indicated that Green Oak was directly involved in managing, directing and paying Hans Development for work on the project, prior to and subsequent to Webster Development being retained as the head contractor. Additionally, and perhaps more significantly, the court considered that Hans Demolition had informed Green Oak that it would not continue working on the project without assurances that it would be paid, and that Green Oak had provided repeated assurances to Hans Development that its invoices would be paid. The court concluded that these direct communications, payments and assurances rose to the level of a business relationship, even if there was no contract between the parties and that the was no juristic reason for the enrichment.

TAKEAWAY Subcontractors must be diligent in maintaining an awareness of the status of the general contractor with whom it has a contract. Accordingly, subcontractors who become aware: (i) of ongoing problems between the owner and the general contractor; (ii) that the general contractor has been removed and/or replaced; or (iii) that the general contractor is not making payment or is making those payments late, may wish to consider seeking information and clarification from the general contractor as to what is happening and what steps the general is taking to remedy any problems. Seeking information early and frequently provides the opportunity for subcontractors to take timely and effective steps to protect their interests, including but not limited to registering a claim of lien within the prescribed time limits. Owners wishing to avoid the prospect of having to pay damages to subcontractors should respect the hierarchy of the contractual relationship established between the owners, general contractors, and subcontractors. Owners would be wise to refrain from communicating, directing and making promises of payment to subcontractors. Owners would be wise to limit their communications regarding the work to the general contractor as much as possible and rely upon the general contractor to communicate with and pay its subcontractors. Charles Bois is partner at Miller Thomson LLP. Andrew Hefford is an articled student at the firm.

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