Sheet Metal Journal Fall 2015

FALL 2015

sheetmetaljournal.com

The Road to

Calamity SMACNA-BC 32nd Annual Golf Classic Northwest Sheet Metal: The Stitches of Success Showcase Showroom: Luring Buyers through the Front Door

Publications Mail Agreement # 40719512

Official Journal of Record for SMACNA-BC

PROMOTING

GROWTH AND STABILITY IN OUR INDUSTRY

Formed in 1969, the British Columbia Sheet Metal Association (SMACNA-BC) was the first international chapter of the Sheet Metal & Air-conditioning Contractors National Association (SMACNA). Founded in 1934, SMACNA traces its history to the National Association of Sheet Metal Contractors established in 1910, and has 2,300 members worldwide.

SMACNA-BC is a member-driven association representing unionized sheet metal contractors in the Mainland of BC, and suppliers to our industry. It promotes the growth and stability of the members and industry.

OUR MANDATE • To improve the financial stability and business conditions of the sheet metal industry, and to develop and promote methods to improve managerial proficiency • To improve quality, efficiency and productivity of this industry, and to implement high standards of work • To establish and maintain high ethical standards of conduct between members of the Association, and between members and owners, architects, engineers, other contractors, and the public • To study and help in the development and enforcement of governmental codes and regulations, and such legislation as may be necessary for the best interest of the public and the sheet metal industry • To promote harmony in labour relations • To exchange technical, professional, and educational information with other contractor associations in the sheet metal industry and its allied trades in Canada and other countries • To affiliate as a Chapter with the Sheet Metal & Air-conditioning Contractors National Association, Inc.

BC Sheet Metal Association (SMACNA-BC) Executive Director: Bruce Sychuk 315-15225 104th Ave. Surrey, BC. V3R 6Y8 Phone: (604) 585-4641 • Fax: (604) 584-9304 E-mail: smacnabc@smacna-bc.org • www.smacna-bc.org

Fall 2015 www.sheetmetaljournal.com GROUP PUBLISHER

Lara Perraton lperraton@pointonemedia.com

EDITOR

Jessica Kirby jessica.kirby@pointonemedia.com

CONTRIBUTORS Mark Breslin Andrew Delmonico Amelia Cline Ted Garrison Norm Grusnick Stephen O. Revay Bruce Sychuk

COVER PHOTO Courtesy of Northwest Sheet Metal

ADVERTISING SALES

Christina Tranberg 877.755.2762 ctranberg@pointonemedia.com

GRAPHIC DESIGNER

Lara Perraton 877.755.2762 lperraton@pointonemedia.com PUBLISHED QUARTERLY BY Point One Media Inc.

Sheet Metal Journal P.O. Box 11, Station A Nanaimo, BC V9R 5K4 Toll-free: 877.755.2762 www.sheetmetaljournal.com While information contained in this publication has been compiled from sources deemed to be reliable, the publisher may not be held liable for omissions or errors.

Contents ©2015 by Point One Media Inc. All rights reserved. No part of this publication may be reproduced or duplicated without prior written permission from the publisher.

Printed in Canada.

Postage paid at Coquitlam, BC. Return postage guaranteed. Canada Post Canadian Publications Mail Sales Product Agreement #40719512.

Return undeliverable Canadian addresses to: Circulation Department Sheet Metal Journal P.O. Box 11, Station A Nanaimo, BC V9R 5K4 email: circulations@pointonemedia.com

Official Journal of Record for SMACNA - BC

Find Sheet Metal Journal on Twitter and Facebook

Photo courtesy of Northwest Sheet Metal.

FEATURES

06 The Road to Calamity Follow ten easy steps on the route to an unsuccessful project—one where delays, cost overrun, and protracted disputes are the end result.

12 SMACNA-BC 32nd Annual Golf Classic SMACNA-BC truly hopes attendees enjoyed good sport and camaraderie at the 32nd Annual Golf Classic.

16 N orthwest Sheet Metal: The Stitches of Success Northwest Sheet Metal solved logistic problems for CO Apparel at its manufacturing facility in Vancouver.

18 S howcase Showroom The right showroom can lure buyers in the front door— especially if it is high-tech, hands-on, and there are dinosaurs involved.

DEPARTMENTS

04

Guest Editorial

23

Engineer's Desk

05

Industry News

24

Contractors 101

05

SMACNA-BC Calendar

26

It's the Law

20

Feature Focus

27

Advertiser Index

22

Technical Updates

Next issue: Construction Outlook • Tools & Technology • Architectural Sheet Metal Prompt Payment Legislation • Trans-Pacific Partnership

www.sheetmetaljournal.com • Fall 2015

3

GUEST EDITORIAL WHAT ARE FOREMEN MOST AFRAID OF? Construction foremen are bad asses. I have talked to thousands of them and most of them could kick my butt. But I know something about them. I know about their Achilles heel. I know what scares them absolutely to death.

It’s not getting fired. It is not having an eight-ton beam fall on their heads. It is not the toughest job with the worst estimate, or an inspector from hell. It is not a vendor no show, mechanical breakdown, or bad weather. No, it is worse than all that combined.

Foremen are afraid to look, or feel, weak.

This simple problem of human nature meets macho jobsite meets leadership choices costs contractors millions and millions of dollars each year. In lost production, rework, low morale, safety problems, and more. Foreman simply cannot do the right thing if they think it makes them look or feel weak.

As I developed my recent book and training program, The Five Minute Foreman, I quickly found that these fears are widespread, universal, and totally understood by everyone. I also found that no one talks about it. They can’t. Because they are (mostly) dudes.

by / Mark Breslin

What activities are either inhibited, or eliminated, due to a foreman’s fears of looking or feeling weak?

• Using praise or positive reinforcement to motivate employees. This is only the number one motivator in the workplace, and it is free.

• Taking input from subordinates • Admitting they made any kind of mistake, or apologizing • Sincerely thanking people • Choosing diplomacy or communication over confrontation • Coaching instead of criticizing • Using influence instead of authority • Choosing a professional demeanor over the tough guy attitude All of these are out of the comfort zone. All of these get better people results. Better people results get better business results.

Better business results means more money and more market share.

Many foremen have been raised in a culture that does not inherently value the talent or contributions of the people involved. Insecurity, lack of social or emotional intelligence, or improper training all combine to create serious discomfort and leadership failure. But the good news is that nearly every foreman is coachable.

When training them, the most important thing is to focus on the better business outcomes. Taking any approach that looks or sounds like “touchy-feely” is a deal killer. But when you make them focus on the tangible benefits from a business standpoint, the fear diminishes. When you reassure them they are not giving away power or authority, they adopt a new degree of flexibility. And most importantly, when you give them permission to be the high quality people and leaders that they know they should be, instead of a cartoonish role they learned, they break free from the limits of fear. And on the other side of that are the people, business, and profit results that benefit everyone.

To read how Mark addresses these fears with a free chapter of The Five Minute Foreman visit www.breslin.biz/Downloads/ bsi_reports/5minForeman.pdf. 

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Sheet Metal Journal

INDUSTRY NEWS Sheet Metal Workers Training Centre Apprentice Contest November 21 Once again it is time for the Sheet Metal Workers Apprenticeship Contest. On November 21 the Centre will be hosting the Annual Sheet Metal Workers Training Centre’s Apprentice Contest at the school located at 19077-95A Ave in Surrey. This annual event has your apprentices competing for prizes and recognition as best in their field. This year we continue with the format of apprentices competing in Levels 1, 2, 3, and 4. We need you to encourage your apprentices to enter the event. Please have them call Jud at (604) 882-7680 ext 222 or email judmartell@smwtcs.ca with Contest in the subject line.

We would also like to extend an invitation to owners, supervisors, and interested employees from your company to visit and/or send volunteers to help judge or proctor the contest. Please give us call (604) 882-7680: ext. 222 for Jud and ext 224 for Bob. Many of the suppliers to the Training Centre have committed to donating prizes to be used for the competition. In past contests individual contractors have been strong supporters of this event by donations of door prizes for participation and/ or prizes for the winners. Thank you for all your support in helping to make this a successful event.

The contest begins on Saturday, November 21 at 8:00 a.m. (7:30 a.m. orientation). The best time for viewing the shop portion of the contest is approximately from 11:00 a.m. to 1:00 p.m. We hope to see you there. https://www.facebook.com/SMWTCS https://www.facebook.com/events/881931795233918/ 

Lone Tory Supports Contractors’ Request for Prompt Payment Legislation Liberal, NDP, and Green candidates all claim party endorsement The Mechanical Contractors Association of British Columbia (MCABC), in conjunction with the National Trade Contractors Coalition of Canada (NTCCC) concluded a poll among the candidates of the four major national parties in British Columbia asking a single question: Do you support federal prompt payment legislation for the construction industry – yes or no? Liberal, NDP & Green candidates either answered yes or claimed party endorsement. Conversely, the poll generated but one supportive reply from the Tories, candidate Tyler Nesbitt in Skeena-Bulkley Valley.

NTCCC and MCABC have called on all parties to commit to introducing prompt payment legislation that will require all

federal contracts for construction projects to include prompt payment clauses. This would require federal government owners and all contractors to make payments on time for work that has been completed and that is not in dispute.

Other countries like the United States, United Kingdom, Ireland, Australia, and New Zealand have eliminated the delay payments bottleneck in their construction industries. Canada remains an outlier.

The 91% positive replies divided between the parties as follows: NDP 37%, Liberal 27%, Green Party 21%, Conservatives and Independents 3% each. The remaining 9% of respondents did not answer the question.

Watch the next issue of SMJ to find out what local and federal politics are doing about this issue. 

What Downturn? SmartMarket Report: Lean construction yields strong business benefits The devastating impacts of the long recession have made it clear that, even as the economy slowly recovers, business as usual can no longer be an acceptable approach in the construction industry. Lean construction offers an alternative that allows companies to thrive in any economic conditions.

The SmartMarket Report, “Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency,” published by McGraw Hill Construction, demonstrates that taking a lean approach, including the use of BIM and prefabrication, makes firms more competitive and yields strong business benefits.

In fact, these benefits can be so pronounced that one of the expert lean contractors interviewed in the study states that, because of their lean approach, “We didn’t have a downturn.”

Continued on page 27

UPCOMING EVENTS Tuesday, November 24 SMACNA-BC / SMWIA Local Union No. 280 Joint Conference Board Meeting Surrey, BC Friday, November 27 SMACNA-BC Annual Christmas Party Pan Pacific Hotel, Vancouver, BC December 6 – 8 SMACNA Council of Chapter Representatives Meeting Monterey, CA www.sheetmetaljournal.com • Fall 2015

5

The Road to

Calamity

By Stephen O. Revay, Revay and Associates Ltd.

I

n the spirit of Crosby and Hope, the comments

which follow provide a road map for contractors seeking the route to an unsuccessful project—one where delays, cost overrun, and protracted disputes are the end result.

The abundance of traffic on this frequently travelled path has overwhelmed our normally efficient, just, and speedy legal system. In true North American style, a new industry centred on the buzz words “alternative dispute resolution mechanisms” has been developed. The following guidelines (or golden rules, if based on the author’s bias, as a member of this new industry) are provided for those seeking to join

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Sheet Metal Journal

the prevalent trend on construction sites involving protracted disputes, delays, and cost overruns.

1. Never familiarize yourself with the contract In reviewing a contract, one should always assume that: • all contracts are the same • because it is a “contract,” it must be fair • it represents discussion leasing to the formal agreement • it was prepared by competent individuals.

In accepting these assumptions, it becomes clear that one should ignore contract sections titled, “Special and / or Supplementary

Conditions.” Articles in the General Conditions dealing with the following should also be avoided: • changes/extras • disputes • authority/roles/definitions • soil/site conditions • delays • payment • notice provisions As a proviso, it is acceptable if one reads the articles dealing with notice provisions as long as they are thereafter ignored.

In recommending the policy, one must pay no heed to the Federal Court decision in the case of Corpex (1977) Inc. v. La Reine as well as several British Columbia decisions wherein the contractor’s lack of notice resulted in adverse decisions denying claims for additional compensation.

As misunderstandings obviously do not occur between buyers and providers of construction services, there is no need to comment on the assumption that the formal contract always reflects prior discussion. It is here necessary to applaud the construction industry’s attitude that contract documents should not be prepared and / or vetted by members of the legal profession. It is far better to have an experienced engineer preparing these documents as the job experience will be invaluable, particularly the repercussions.

Equally, one must encourage architectural and engineering firms to continue the practice of having their least experienced people preparing those mind-numbing specifications. As these are invariably ignored by all, it would be pointless to waste real talent on them. In this regard, one should ignore the efforts of Construction Specifications Canada, which is inter alia, seeking to promote professionalism among specifiers.

2. Never identify the time impact of changes / extras to the work In the unlikely event a change or extra work is issued, the contractor is frequently requested to advise schedule effects.

The following choices are available: • Silence • Allow two days for every change • Indicate that effect will be provided upon completion of the work or on overall completion • Indicate no effect if authorized to proceed by a predetermined date.

This last alternative should be avoided as it may (nothing is certain in law) satisfy notice provisions and, as discussed above, this should be avoided.

As misunderstandings obviously do not occur between buyers and providers of construction services, there is no need to comment on the assumption that the formal contract always reflects prior discussion.

Silence has the benefit of being easy and is unlikely to upset anyone save for possibly the owner(s) of the contracting firm when the discovery is made that the silence will likely preclude recovery for a delay claim. As most construction managers move from firm to firm, this should not be a problem.

Allowing two days for each change is an equally good approach.

There may exist a credibility problem when, at the end of the project, the requested days of extension are significantly more that the period of delay. However, since owners and/or their representatives don’t believe anything contractors say, this should be easily overcome.

Providing effect on completion of the work is both practical and fair, and should therefore be avoided as it requires analysis.

It is far easier to provide effect on completion of the project as the required response is readily ascertainable. Contractors must be encouraged to find owners who will accept this latter approach.

3. Never qualify the change order price Contractors must always let owners assume the price quoted for the change includes: • time impact cost • impact on contract work • cumulative effect of previous changes Contractors should not leave themselves the opportunity of addressing these issues down the road. Therefore, contractors should not indicate that their quotation is only for the direct cost of affecting the work and that it specifically excludes consideration for the above-listed factors.

If there exists a desire to include such a qualification, it should be introduced near the end of the job so the owner can assume (probably legally) that the qualification does not apply to all previous non-qualified quotations.

The worst case scenario is for the contractor to discuss this and other issues addressed herein with the owner and/or its representative at the commencement of work. These issues are best discussed once the adversarial process and animosity have set in. www.sheetmetaljournal.com • Fall 2015

7

The Road to Calamity

This is not desired for it will invariably result in one being side-tracked from the route to an unsuccessful project.

When faced with a potential acceleration situation (extended work hours, shifts, congestion, overmanning), one should always proceed if it is desired by the owner. This will considerably enhance the relationship between owner and contractor, especially if the contractor does not mention cost.

© Can Stock Photo Inc. / ilkercelik

4. Never identify productivity impact This rule should be applied particularly when discussing such issues as acceleration, inclement weather, and extensive changes.

If the contractor must mention cost, he must be careful not to mention impact and / or cite the extensive research which concludes inefficiency losses are an invariable result of acceleration. In particular, one should not review the Revay Report “Calculating Loss of Productivity Due to Overtime Using Published Charts Fact or Fiction.” This particular report refers to various sources that indicate productivity losses due to extended overtime will actually decrease production over what was achieved with a regular work week. As this publication is available for free (at www.revay.com) it probably has no relevance.

5. Never wait for authorization before proceeding with changes / extras

Everyone knows productivity is too difficult to quantify and, thus, should be ignored. After all, it would require tracking and measuring variations in unit costs and / or schedule durations.

This rule or guideline needs little comment as it is generally accepted and applied, much to the appreciation of owners who consequently enjoy the luxury of choosing which extras / changes they will pay for.

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Any contractor worth his salt is quite conversant with the fact that if it satisfied a changes clause which required written authorization before proceeding, the job would never get done. Contractors must be applauded, for they willingly take on the risk of not being paid for the changes as opposed to dealing with the impracticality of that clause “up front” at a project meeting.

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Some contractors foolishly attempt to achieve some protection by advising the owner of their actions – i.e.; proceeding with the changes / extra work for which compensation will be sought. Such attempts at protection should be avoided, as they prevent the owner from having complete control over the contractor’s destiny.

6. Never maintain proper job records Proper job records must be avoided at all cost as they might allow one to justify and quantify (without the use of a consultant) requests for changes in the contract price. This is definitely a no-no.

Realistically, to achieve proper records, one must monitor and control scope, time, cost, and quality and this is much too time-consuming and expensive for the average contractor.

Furthermore, such records are simply of no use if the project

has been successful—a frequent and embarrassing byproduct of monitoring these four factors.

Remember, there is never enough time to do it right, but always time to do it over!

7. Never seek clarification on issues that are potentially disputable There are a few hardened contractors who perceive themselves as business persons signing contracts that contain liabilities and obligations which cannot be ignored. These few will invariably strive to resolve disputes before they fester into claims requiring the assistance of a consultant. This is quite clearly an illogical approach.

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Contractors are, first and foremost, builders of structure and friendships. After all, the golden rule on most construction sites is, “don’t get the engineer or architect mad by suggesting there might be an error in the drawings or specifications.”

Notwithstanding the financial costs that may be incurred, such suggestions can create disharmony which must be avoided until the job is over. Once memories become vague and the need for a consultant is increased, then and only then should one seek to clarify disputes.

There are some owners who would suggest contractors who only deal with claims at the end of a job are inept, as it is only at that time that they realize they have lost money. As owners are generally not to be believed, this opinion can be ignored.

8. Never strive for informative (useful) project cost control To successfully apply this rule, one need only consider project cost control to be the recording of expenditures in the same manner as would an accountant. To unsuccessfully apply this rule would mean maintaining a formal procedure for tracking cost against progress.

The extent to which this is unsuccessful depends on the level to which costs and progress are tracked. It is continually comforting to find contractors who track cost in great detail without the vaguest idea as to what was achieved for the cost expended. Consequently, it is not until the end of the job that the contractor knows whether or not a profit was achieved.

These contractors also share with owners the benefit of surprise at the end of the project.

9. Never price changes / extra appropriately The construction industry has a simple way of dealing with the indirect costs of changes / extras i.e.; • change order preparation • field overheads • home office overheads

www.cmetals.com DELTA LANGLEY EDMONTON CALGARY SASKATOON BRANDON WINNIPEG LONGVIEW SEATTLE PORTLAND NAMPA VANCOUVER SPOKANE

www.sheetmetaljournal.com • Fall 2015

9

The Road to Calamity

British Columbia Sheet Metal Association (SMACNA-BC) Providing products and information related to the Sheet Metal Industry, including technical manuals and guidelines.

The unmatched technical and managerial expertise of SMACNA-BC Contractors is enhanced by the talent and skills of the workforce they employ. SMACNA-BC Contractors employ only Red Seal Certified Sheet Metal Journeymen and Registered Apprentices.

CONTRACTOR MEMBERS 101 Industries Ltd. Admiral Roofing Ltd. Agvale Industries Ltd. Airtek Pneumatics Ltd. All Valley Metals Ltd. Alliance Metal Fabricators Ltd. Allied Blower & Sheet Metal Ltd. Ames Metal Fabricators 82 Ltd. Apollo Sheet Metal Ltd. Austin Metal Fabricators L.P. Boston Sheet Metal Ltd. Bry-Mac Mechanical Ltd. CC Industries Ltd. Cascade Metal Design Ltd. Century Plumbing & Heating Ltd. City Sheet Metal Ltd. Crosstown Metal Industries Ltd. Downtown Custom Metal Works Ltd. Duncan’s Ltd. ECCO Supply Equity Plumbing & Heating Ltd. Haakon Industries Canada Ltd.

Harbourview Sheet Metal Ltd. Horizon Cladding Ltd. Horizon Metal Systems Inc. KD Engineering Co. Keith Plumbing & Heating Co. Ltd. M&T Air Conditioning Ltd. Northwest Sheet Metal Ltd. Pacific Rim Industrial Insulation Ltd. Paramount Sheet Metal Ltd. Piedmont Sheet Metal (1997) Ltd. Quest Metal Works Ltd. R.H. Jones & Son Mechanical Ltd. Ridge Sheet Metal C.P. Smith Sheet Metal Works Ltd. Spectrum Sheet Metal Ltd. Summit Sheet Metal Ltd. Tri-Metal Fabricators Viaduct Sheet Metal Ltd. Vicwest Delta Western Mechanical Services (1977) Ltd. York Sheet Metal Ltd.

ASSOCIATE MEMBERS Access Metal Products Ltd. Air System Supplies All Therm Services Inc. Bailey West Processing Inc. Brock White Construction Materials Control Solutions Ltd. Crossroads C&I Distributors DDK Ventilation Products Ltd. E.H. Price Sales Ltd. Engineered Air Envirotech Air Inc. ETP Energy Technology Products Ltd. (a div. of IPC, Inc.) Frost Insulation Supplies Inc.

Intercon Insurance Services Ltd. Manson Insulation Maxam Metal Products Modern Tool (BC) Ltd. Multicam Western Canada Nu-West Construction Products Pacaire HVAC Supplies Ltd. Progressive Air Products Ltd. Raven Hydronic Supply Ltd. Samuel, Son & Co., Ltd. Westland Insurance Group Ltd. Winroc-SPI Wm. P. Somerville 1996 Ltd.

BC Sheet Metal Association (SMACNA-BC) Executive Director: Bruce Sychuk 315-15225 104th Ave. Surrey, BC V3R 6Y8 Phone: (604) 585-4641 Fax: (604) 584-9304 E-mail: smacnabc@smacna-bc.org

10

Sheet Metal Journal

The architect and engineer will invariably ascertain that the cost of direct work is inflated. New prices will therefore be requested. The contractor will disagree as he rightfully believes the quoted total price of the change to be correct.

Owners (i.e.; buyers of construction services) will arbitrarily establish these costs to be equivalent to a fixed percentage of the value of the change. Although simple, this situation can be problematic on those rare occasions when that percentage does not cover all of these costs. In such cases, there are three alternative courses of action: • inflate the direct cost of the change, thereby increasing the fee portion and the potential for dispute • where possible, isolate and treat the above indirect costs as direct costs, thereby more correctly identifying the true cost • deal with this problem up front so disputes are avoided down the road The first alternative is obviously favoured as it creates an interesting scenario. The architect and engineer will invariably ascertain that the cost of direct work is inflated. New prices will therefore be requested. The contractor, on the other hand, will disagree as he rightfully believes the quoted total price of the change to be correct.

Confrontation is the only possible result, unless, of course, the contractor prefers (as has been suggested earlier) to deal with such issues at project completion.

The second alternative is to be avoided as it may result in the contractor being aware of the cost of quoting extra work.

This would prevent an owner from utilizing a contractor, as occasionally occurs, as a free estimating service.

No comment is required on the third alternative.

10. Always follow the above rules Rule No. 10 is only provided because everyone from God to David Letterman believes rules must come in groups of ten.

To conclude, two comments are necessary. The first is that statements which bear resemblance to legal opinions should be ignored until professional legal advice is sought. The author is not a lawyer, nor does he profess to have legal training.

The second comment deals with the author’s concern that such a tongue-in-cheek presentation as this might imply that the foregoing matters should be taken lightly. Quite the

contrary. This must be avoided as the author has simply seen too many families, careers, and / or firms ruined as a result of the application of one or more of the above “rules.” What is in fact being suggested are the following guidelines: 1. Familiarize yourself with the contract.

2. Identify the time impact of changes / extras to the work.

3. Qualify the change order price.

4. Identify productivity impact.

5. Wait for authorization before proceeding with changes / extras.

6. Maintain proper job records.

7.

Seek clarification on issues that are potentially disputable.

8. Strive for informative (useful) project cost control.

9. Price any changes / extras appropriately.

10. Always follow these rules.  Stephen Revay, FACCE, FCSC, CCP, CFCC, has been active for the past 37 years in the analysis of progress, productivity, and cost on numerous construction projects. He has prepared or evaluated productivity and/or schedule analyses, including quantification of claims on construction projects throughout Canada, and internationally. He has been qualified as an expert witness in both litigation and arbitration. He is a ast President of Construction Specifications Canada and was president of Association for the Advancement of Cost Engineers International.

MEETING THE LABOUR NEEDS OF OUR INDUSTRY

BY DELIVERING QUALIFIED PROFESSIONAL SHEET METAL WORKERS TRAINING C E N T R E S O C I E T Y The Sheet Metal Workers Training Centre Society’s mission is to provide the highest quality of training and upgrading to sheet metal apprentices and journeypersons in the Province of British Coumbia by delivering the highest standards of instruction and utilizing the most up-to-date teaching methods.

For more information Tel 604.882.7680 Fax 778.298.0656 or Email registrar@smwtcs.ca Check us out on the web at www.smwtcs.ca 19077 - 95A Ave. Surrey, BC CANADA V4N 4P3

Some things are better kept cold.

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Maintain a comfortable environment with the BCICA Quality Assurance Certificate.

Only a BCICA member can deliver this level of assurance – the very best materials; purpose-trained independent inspectors; Red Seal certified installations.

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www.sheetmetaljournal.com • Fall 2015

11

SMACNA-BC 32nd Annual Golf Classic by / Bruce Sychuk photos by Maple Street Productions

W

ell, we dodged the rain once again this year. We at SMACNA-BC truly hope you enjoyed yourself at our 32nd Annual Golf Classic.

The sponsors, the hole sponsors, the SMACNABC golf committee, and our many volunteers, once again made this event truly memorable. We couldn’t have done it without you.

Next year, how about someone win one of those hole-in-ones?

We would like to send a special shout out this year to Apollo Sheet Metal Ltd. for sponsoring the air cannon—this helped shave a couple of strokes off some of the scores. Of course, thank you also to Brian Featherstone (ECCO Supply) & Ryan Houston (MANSON Insulation) for prompting attendees to maybe increase their generous donations.

Also shout out and big thank you to our volunteers, Rick Baty (SMACNA-BC Life Member), Sharon Benson (Paramount S/M), Lara Perraton and Christina Tranberg (Point One Media), Rocky/Roxanne Sychuk (SMACNA-BC), and Ken Gingras (ALS, Pacific Angler Fishing Charter).

Of course, the big winner this year was the ALS Society of BC. Thank you to those who made contributions by participating

Proud to be distributing:

in the events and with some very generous donation(s) from 50/50 participants.

In case your memory just isn’t as sharp as it was before, Nic Roggeman of Maple Street Productions took some wonderful photos. Contact SMANCA-BC office for the Dropbox link if you haven't already received it. If you have any questions or are having trouble viewing the images, please call Nic at 604.319.6485.

Once again, thank you to each and every sponsor. Hope you had a good time and see you all next year!  More photos on pages 14 - 15.

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www.sheetmetaljournal.com • Fall 2015

13

SMACNA-BC 32nd Annual Golf Classic

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Sheet Metal Journal

Have you got interesting photos and memories you'd like to share?

Contact our editor, Jessica Kirby, to find out how to submit your materials for inclusion in a future issue of Sheet Metal Journal. jessica.kirby@ pointonemedia.com tel: 250.816.3671

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You can relax now. The BCICA Quality Assurance Certificate has you covered; the very best materials, Red Seal certified installations, purpose-trained independent inspectors.

Only a BCICA member can offer you this comfort.

For new construction or retrofits, ask for the QAC on all your mechanical insulation projects.

Find out more.

www.bcica.org 604.438.6616

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www.sheetmetaljournal.com • Fall 2015

15

by / Jessica Kirby Photos courtesy of Northwest Sheet Metal

The Stitches of

SUCCESS Project: CO Apparel, Vancouver Architecture: Chercover Massie & Associates Ltd. Engineer: DEC Engineering - Jae Ryu Location: 3888 North Fraser Way, Burnaby, B.C.

DEC

Engineering was retained by CO Apparel to provide design for modifications of its new facility. The client produces a lot of waste steam heat through its pressing tables, which use steam to iron the clothing before packaging, and thus wanted to integrate a heat recovery system to save energy.

The design became a rush after the previous location was lost in a fire, and the time to move facilities was critical—the

design began in March and the move had to be completed in July of this year, as this is a short-term slow cycle in the clothing manufacturing industry.

To accomplish the schedule, the client and DEC Engineering contacted Northwest Sheet Metal to come on board to meet the time line and the budget. Also at the same time DEC Engineering contacted Gavin McCallum of ECCO Supply to assist with proper product selection.

Northwest Sheet Metal supplied and installed all the project's HVAC equipment, including a gas-fired make up air unit (9,500 CFM, 1,000,000 BTU); exhaust fan (26,000 CFM, complete with VFD); supply fan (26,000 CFM, complete with VFD); energy recovery ventilator (ERV); and, a Northwest Sheet Metal-built heat exchanger with a dPoint Technologies ERV core.

Unique features of the project included the 12x10x10' ERV, which was fabricated by Northwest Sheet Metal and required special arrangements for transport and craning.

“Our project scope was to supply and install an ERV and HVAC system for the purpose of utilizing the steam exhaust from the pressing tables,” said Mark McKee, project manager for Northwest Sheet Metal. “The hot air from the production area is recovered through the ERV on the roof,and through the use of inline supply and exhaust fans, we recover a large portion of the waste heat and then add it to the return air back to the workplace below.”

“At this point we installed 24" spiral duct and added highcapacity drum louvers to disperse the air evenly throughout the work space,” he added.

Unique features of the project included the 12ftx10ftx10ft ERV, which was fabricated by Northwest Sheet Metal and required special arrangements for oversize transport and lifting.

Relocating the facility was very time sensitive. Northwest Sheet Metal offered suggestions and assisted in steamlining the process. There were challenges in the roof structure as it could not bear the weight of a factory manufactured ERV unit.

That is why Northwest worked with dPoint Technologies to custom manufacture a unit to meet the design criteria of this project.

Northwest Sheet Metal built an ERV core cabinet and the fans were moved in line at supply and exhaust thus distributing the weight over various roof sections.

For more information please visit Northwest Sheet Metal online at www.northwestsheetmetal.ca 

Business Manager & F.S.T.

James Paquette

Assistant Business Manager

Dan Burroughs

Business Representative

Richard Mangelsdorf

Business Representative

Ken Elworthy

6188 Kingsway, Burnaby, BC V5J 1H5 Phone 604-430-3388 or 1-800-242-8645 Fax: 604-431-1864 Email: agents@smw280.org www.sheetmetaljournal.com • Fall 2015

17

Showcase Showroom

Multicam uses its office deisgn to showcase the capability of its equipment and bring in buyers. by / Jessica Kirby • Photos courtesy of Multicam

M

ulticam has been recognized the world over for its stateof-the-art / work-of-art showroom, which captures three thematic representations demonstrating exactly what the CNC machine dealer’s product line is capable of.

Robotic Reception, Nautical Boardroom, and Jurassic Office Space give customers a hands-on look at what the technology can produce with a little imagination and just the right skill.

When the facility was first constructed it was part of a $2.5 million investment that included building renovations and showcasing five demo CNC machines.

Multicam relocated to a larger shop the year this project began and were destined to make full use of the 10,000-square-foot space. “We liked the automotive dealership approach and kept that in mind as we created our showroom,” said president and general manager Sean Lawlor. “We thought it made sense to have four or five machines here and stock parts and consumables, including most parts required for our various machines.

“We have done that because there are so few in Western Canada, we felt the clientele needed to see it and have it here,” he said. “It is more impactful than just salespeople wandering around looking at machines.”

The showroom instead addresses all manufacturing industries including steel, cabinets, trims, and mouldings.

Lawlor said the purpose of the unusual design was to demonstrate exactly what the machines can do.

The actual rooms were designed by Dan Sawatzky of Chilliwack’s Sawatzky’s Imagination Corporation, a site design and production company. He used a CNC machine purchased from Multicam to do the embellishments.

The idea was to shape the showroom based on the aesthetics and sales principles of a tradeshow booth.

“The goal of a tradeshow is to draw people into the booth and have them remember you,” said Lawlor. “That is our goal, too.

“Once we’ve drawn people into our showroom and shown what the machines are capable of, that shows people we know what we are talking about.”

It also comes down to credibility: the investment into demo machines and a show-stopping showroom relays the impression this is not a random pop-up and go company.

“They know they are not just buying from a random company with no office here,” said Lawlor. “They gain the comfort of

knowing how to use these machines and inspiration for what they can accomplish. That is why we built this.”

Multicam’s typical line-up includes CNC plasmas, waterjets, routers, lasers, and knife-cutting machines.

Prospective purchasers can come in and, with Multicam staff's assistance, qualify what the best machines will be for their companies' current applications and their growth needs.

“We ask them to send a CAD file and those are then translated into through CAM software to cut the parts,” said Lawlor.

The showroom was hailed one of the world’s top ten creative spaces by Businesspundit.com, coming in just behind Disney, Microsoft, and Google. “When people see us, they remember us,” said Lawlor.

On the heating and ventilation side, Multicam contracted work on the showroom to Viaduct Sheet Metal in Surrey, which completed the work and exceeded the company’s expectations.

“They did a fantastic job and really understood what we are trying to accomplish here,” said Lawlor.

Features inside the boardroom include a desk in Lawlor’s office that has a glass table top and the steel skeleton of a T-Rex that was nested and cut on a CNC plasma system.

“Basically we took the graphic design of a T-Rex and exploded it into smaller pieces that could be translated into machine code through CAD/CAM software and then cut on our plasma machine. Afterwards they were assembled and welded,” said Lawlor. “We used a water jet cutter to cut the curved glass top.”

Another standout feature is the five-axis mould of a dinosaur cut with a CNC router—the process comprised converting graphic files to vector files and then translating them to machine code for the five-axis CNC router. “Most machines are two- and three-axis, while this is a solid block and we are coming in from all different directions,” said Lawlor. “This is not all cut with the CNC router either; there is a huge part you just can’t do with machines, so it is a combination of CNC machining and sculpting by hand.”

Multicam sells equipment to metal working companies for various applications; for instance, a soon-to-be client is looking for a cleaner, more aesthetically pleasing technique for completing architectural metal work. “The metal has to look really nice so ideally a CNC water jet or a CNC router would be the best,” said Lawlor. “These two processes provide smoother cuts that provide a nicer look than some of the other machines where heat is used to cut the material, which in turn leaves a rougher edge due to dross.”

Continued on page 27

SMWIA Local Union No. 280 / SMACNA-BC Partnership

Left: Jud Martell Local Union No 280 President. Right: Mark McLaren current SMACNA-BC President. Photo by Bob Pascuzzi (SMWTC).

The front mat in the entry, bearing the Multicam logo and business name, is cut with a CNC knife cutting machine.

The Robotic Reception may have been this job’s trickiest task, as it was constructed offsite and had to be manouevered into the building.

As the movie industry rebounds and the Canadian dollar improves, the demand for specialty metal work will kick-start future growth for the company.

Labour & Management “Embracing the Challenge” - B. Flaherty, Cornell University, Syracuse, N.Y.

www.sheetmetaljournal.com • Fall 2015

19

FEATURE FOCUS FastEST GROWS FROM ACCIDENTAL ROOTS TO A BRIGHT FUTURE FastEST, Inc’s mechanical estimating software is a breath of fresh air in the plumbing, mechanical, HVAC, and sheet metal markets because it brings user-friendly, well-supported technology to an industry where time is money and productivity makes the bottom line. But mechanical estimating technology isn't where owner Mark Oxler began, nor where he thought the future would take him.

Images courtesy of FastEST, Inc.

Oxler's foray into the mechanical world was actually slightly by accident. “A friend's father ran a mechanical contracting business, and needed someone to do sheet metal drafting,” he said. “I quickly moved into sheet metal estimating, and then at a different company performed both piping and sheet metal estimating.”

Working as a mechanical contractor in the 1990s, Oxler was searching for an estimating software to use, and came up against some problems. “I had about three years' experience using one program, but chose to purchase a different program instead,” he said. “I found a lot of areas in the software that could use improvement. Also, Microsoft Windows® was becoming more popular and seemed like a better operating

Easy-to-use and accurate mechanical estimating software that can help improve both the speed and efficiency of your estimating process, and your company’s bottom line

system to incorporate than the DOS software that was there at the time.”

Oxler had no background in developing software, but his business partner, Chris Rott, was employed as a programmer.

“It took us over two years to develop a working system, while working nights and weekends,” said Oxler. “It was hard to get our name out there, and to build up the reputation of producing good software when we had never done it before. It was a very slow growing company at first—five years in, we only had about 15 customers.”

Nevertheless, the company persevered, and today offers the most user-friendly products on the market and backs them up with the best support team in the industry. “Customers can call in at any time and get immediate support,” said Oxler. “This includes technical support, product support, and perhaps even advice about estimating.”

Moving forward, FastEST has a number of new developments on the horizon, including upgrades to FastWRAP™, its mechanical insulation estimating software. “This will make all three of our software products, FastPIPE®, FastDUCT®, and FastWRAP™, optimized for use on all 64-bit Windows® operating systems,” said Oxler. “We have future plans of improving our performance in a cloud-based environment and in a virtual network.”

fastest-inc.com 800.828.7108

20

Sheet Metal Journal

To learn more about FastEST and how it is making plumbing, mechanical, HVAC, and sheet metal estimation simpler and more productive, please visit http://fastest-inc.com. 

FEATURE FOCUS 101 INDUSTRIES LTD.: QUALITY THROUGH CRAFTSMANSHIP For nearly 50 years, 101 Industries Ltd. has spearheaded commitment and innovation in cladding, steel fabrication, heating and plumbing, roofing, mechanical installation and sheet metal work for residential, commercial, and industrial clients, while staying true to its small business roots.

In 1968 Willie Meier founded the company as 101 Sheetmetal, Plumbing and Roofing Ltd., the name signifying 101 years since confederation. From day one, staff and management at the then-small residential plumbing and heating contracting company recognized and invested in customer needs—a core practice that continues today. As opportunities for diversification and improvement arose, company management made the required investments, allowing the company to grow and flourish to one of the largest contractors in northwest British Columbia.

Photos courtesy of 101 Industries Ltd.

shifted to include company officers Thom Meier, Mark Harnadek, and Debra Steen.

Moving ahead into a bright and prosperous future, 101 Industries continues to uphold its commitment to quality, service, and innovation. One of its key operating principles is a dedicated commitment to meeting the highest standards of safety on all of its projects. Safety isn't just a buzzword or Just as important as recognizing and reaching for new markets afterthought—it is a top priority for every person within the is the company’s philosophy to not give up a market in order company. to enter another. During its years of greatest growth, 101 Industries has been able to maintain its existing markets, For more information about 101Industries Ltd. please visit continuing as the leaders in these fields. Even today, as 101 www.101industries.com.  Industries Ltd. is now an industrial specialist, the company is still the premier residential and commercial service and installation contractor in the area—the same place it started since 1968.

In 1968, it was important that the company name be specific and encompass the company's target industries, but over time, and as new opportunities and markets arose, the highly descriptive, 101 Sheetmetal, Plumbing, and Roofing Ltd., no longer adequately served the business. In 1995 the name was changed to 101 Industries Ltd., and also during the 90s, management and ownership of 101 industries progressively

245 Third Street Kitimat, B.C. P. 250.632.6859 • F. 250.632.2101 877.632.6859

www.101industries.com Our Services: Plumbing & Heating • Roofing Structural Steel • Process Piping • Sheet Metal & HVAC Cladding • Fabrication • Machining & Millwrighting Rental Equipment

Skilled Installation Crews • Custom Fabrication • Safe Work Plans Proudly affiliated with:

www.sheetmetaljournal.com • Fall 2015

21

TECHNICAL UPDATES ENERGY SYSTEMS ANALYSIS AND MANAGEMENT This timely document, published in 2014, provides an overview of a variety of energy-related business opportunities for commercial, residential, and institutional buildings. The text presents contractors, building owners and operators, facility managers, and system designers with the tools needed to evaluate an existing facility for energy savings potential, and addresses both new construction and retrofits.

Energy Systems Analysis and Management includes energy conservation management, the energy audit, and energy estimating procedures, as well as HVAC system maintenance and indoor air quality, energy management maintenance and monitoring, energy recovery systems, and energy recovery system investment analysis.

With the long-term rising cost of fossil fuels, reducing the energy consumption of HVAC systems is increasingly important. SMACNA’s new second edition of “Energy Systems Analysis and Management Manual,” 2014, updated January 2015, addresses this topic and much more.

For more information please contact SMACNA-BC at smacnabc@smacna-bc.org. 

ACCA’S 2015 HVAC SYSTEM CLEANLINESS RESTORATION STANDARD RECOGNIZED BY ANSI The Air Conditioning Contractors of America Educational Institute Standards Task Team announced that the American National Standards Institute (ANSI) has recognized the updated ANSI/ACCA 6 QR (Restoring the Cleanliness of HVAC Systems) Standard.

The prior 2007 QR Standard was revised to streamline the instruction set, clarify language, and update references / citations. The Standard details the nationally-recognized minimum requirements to restore the cleanliness of residential and commercial HVAC systems in accordance with manufacturer- or customer-specified criteria. It defines the minimum procedures and practices to: • Determine when airside surfaces should be cleaned, and when they require repair or replacement • Clean the airside surfaces within HVAC systems • Control the spread of contaminants, which may be released as a result of the HVAC cleaning process • Verify the cleanliness of HVAC systems.

The Standard’s procedural format assures restoring HVAC system cleanliness yields maximum benefit with minimal impact on indoor air quality, building occupants, or the building structure during the cleaning process. It also provides direction to assess the economic viability of replacing HVAC components or systems versus cleaning them.

Interested persons can download a free copy of ANSI/ACCA 6 QR - 2015 (Restoring the Cleanliness of HVAC Systems) at www.acca.org/standards/quality. Printed copies are sold through the ACCA bookstore at www.acca.org/store. 

Coming in Winter 2016: Construction Outlook Tools & Technology Architectural Sheet Metal To book your ad space in the next issue or future issues of Sheet Metal Journal call Christina at 1.877.755.2762 or email ctranberg@ pointonemedia.com

22

Sheet Metal Journal

ENGINEER'S DESK ENERGY RECOVERY VENTILATORS (ERV) SAVE ENERGY Bringing outdoor air into a building is vital to maintaining good indoor air quality. However, outdoor air can be very expensive to temper and, if not properly conditioned, can cause humidity problems for buildings. Designers are increasingly finding that using dedicated outdoor air systems (DOAS) allows them to comply with ASHRAE 62.1 with an energy efficient design. DOAS incorporates a dedicated unit to supply cooled, dehumidified outside air to the building in the summer and heated outside air in the winter. These types of systems are ideal for schools, hotels, dormitories, and assisted living facilities.

In the summer, the DOAS dehumidifies the outdoor air before it enters the space. The outdoor air unit is sized to deliver the required amount of outdoor air conditioned to handle the latent load of both the outdoor air and the space.

This requires a supply air dewpoint lower than the room air dewpoint, typically 48-50 DPT. Because the outdoor air unit is handling the entire latent load, the space sensible load is decoupled from the latent load, allowing precise humidity control regardless of the space thermal load. This minimizes the humidity control problems often associated with part-load conditions. The local HVAC units are only responsible for the sensible cooling needed for each space.

Optimizing the DOAS System There are several considerations to make in order to maximize the savings from a DOAS. Items to evaluate include the use of energy recovery, supply air temperature, supply air delivery location, and the system’s sequence of operation. (a) Energy Recovery Since dedicated outdoor air systems are by definition 100% outdoor air (OA) systems, ENERGY RECOVERY is required in most cases per ASHRAE 90.1-2010. The standard requires the following: “Individual fan systems that have both a design supply air capacity of 5000 cfm or greater and have a minimum outside air supply of 70% or greater of the design supply air quantity shall have an energy recovery system with at least 50% recovery effectiveness. Fifty percent energy recovery effectiveness shall mean a change in the enthalpy of the outdoor air supply equal to 50% of the difference between the outdoor air and return air at design conditions.”

Even without the code requirement, energy recovery makes good economic sense. Energy wheels ease the burden of dealing with part load conditions. Because the wheel transfers both sensible and latent energy, downstream conditions are compressed. Depending on the climate and the end user preference, plate type heat exchangers can also be

by / Norm Grusnick, P. Eng. commercial products manager, ECCO Supply

implemented into a DOAS. Plate exchangers offer energy recovery through sensible preconditioning of the outdoor air. (b) Supply Air Temperature The supply air temperature of the DOAS is an important factor in achieving maximum energy savings. As discussed previously, in order to handle the entire latent load, the supply air must be dehumidified to a dewpoint that is lower than the space, which typically means over-cooling the outdoor air. Designers must choose whether to supply air at “space neutral” conditions or at “cold air” conditions. By decreasing the sensible loads in the space, the cooling capacity and annual energy consumption of the local HVAC unit are significantly reduced. (c) Supply Air Delivery Location Where the outdoor air is delivered impacts the energy efficiency of the system. Designers must choose whether to deliver the outdoor air directly into each space, or into the local HVAC unit. Delivering into the space is the most economical option, and the easiest to verify that the required volume of outdoor air is being supplied. Supplying the outdoor air directly into the space also has the greatest effect on the thermal loads. (d) Control Strategies Controlling a DOAS is straightforward: when the building is occupied, the DOAS unit is energized and supplying conditioned outdoor air into the space. The local HVAC units are energized upon a call for cool or heat from the space.

This system allows the precise volume of outdoor air to be delivered to the space independent of cooling or heating status of each space. In addition, there are several measures that can be implemented to further enhance system performance.

Resetting the discharge temperature based on outdoor air is one control strategy that can be implemented. Another strategy for saving energy is implementing a dehumidistat in the space to monitor room humidity.

Dedicated outdoor air systems provide a straightforward, energy efficient approach to handling ventilation air. continued on page 27 www.sheetmetaljournal.com • Fall 2015

23

CONTRACTORS 101 UNDERSTANDING YOUR CLIENT TO SELL VALUE

I often hear frustrated contractors complaining that all customers care about is price. Unfortunately, when contractors talk with prospects that are often the impression the prospect gives, despite the fact that it is not their only concern and often not even their most important concern. Of course, price is always important, but there are other factors to price than the bid figure.

Oticon, a hearing aid manufacturer, had surveys that indicated nearly 80 percent of the hearing impaired population, despite recommendations from their doctors, did not wear a hearing aid and gave cost as the primary factor. While the obvious solution appeared to be to create a hearing aid that cost less, Oticon was not convinced. Further study indicated that the reason people didn't like wearing hearing aids is it made them feel flawed and stigmatized. The idea of a smaller hearing aid didn't have an appeal either because it reinforced the flawed concept because the hearing aid had to be hidden.

When Oticon took a different approach, namely, they designed large yet fashionable hearing aids with bright colours and patterns. When people wore these, friends often mistook the hearing aid for Bluetooth headsets. When the Oticon got to the source of the resistance, they were able to overcome it.

by / Ted Garrison, CSP Catalyst for Change & Construction Industry Visionary

The idea that consumers only care about price is simply not true. Studies have found that while about 27 percent of consumer do focus on price almost exclusively, the remainder do not. In fact, 17 percent only focus on value. The remaining 56 percent will buy based on price or value. The key is they buy on price when they don't understand the value proposition.

In construction, if the client perceives that two contractors are equal, then it makes sense to take the lowest price because it offers the best value. The problem is typically the two contractors are not equal. Therefore, it is the contractor responsibility to demonstrate the value it provides in order to justify any additional cost.

A homeowner wanted to install a new driveway at his house, so he decided to obtain three quotes. The first two contractors assumed the bid price was the most important factor, so they tightened their number down and offered as little as possible to keep their bid price down. The third paving contractor employed a value approach. After the prospect had explained what he wanted, the contractor stated he had a few questions.

The first question was would you like to crown the driveway?

He explained that way as soon as it stops raining there will not FALL 2015

PARAMOUNT SHEET METAL LTD.

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Sheet Metal Journal

Official Journal of Record for SMACNA-BC

Are you reading a borrowed copy of Sheet Metal Journal? Get your own! www.sheetmetaljournal.com

CONTRACTORS 101 The idea that consumers only care about price is simply not true. Studies have found that while about 27 percent of consumer do focus on price almost exclusively, the remainder do not. be any water on your driveway, so your kids can go outside and play as soon as the rain stops. The homeowner liked that idea.

The contractor then pointed out to the homeowner that his neighbours' driveways had bare dirt spots right next to the driveways where they met the road. So he asked the homeowner, would you like us to flair the driveway at the edge of the road and eliminate that unsightly condition?

Again the homeowner liked that idea.

In the end, contractor three had the highest price, but he got the job. In essence, contractor three gave the homeowner a reason to select him over the other contractors besides price.

Who knows, maybe the other contractors would have provide the features the third contractor highlighted, but we will never know.

When I had to purchase a new air conditioner for my house, I got three prices. Two contractors only provided a price. The third contractor sat down with me and quizzed me about my concerns. He then addressed each of those concerns. One thing he did was provide data on the equipment he was proposing to install that showed what kind of operational savings we could expect to receive. He emphasized the little extra upfront cost was handsomely paid back in operational efficiency. In the end, I felt more comfortable using third contractor despite the fact that he wasn't the lowest bidder.

There is a flooring company in Wilmington that has a sign on the side of its trucks that says, "We are the most expensive in town." The implication is that he provides superior value. It works for him, and he has all the business he can handle. He probably is catering to the 17 percent that only cares about value.

For contractors to capture the 56 percent that consider both price and value, the contractor needs to understand what is important to the prospect and give the prospect valuable reasons to select its value over a lower price. The key is the contractor must make the value proposition very clear using dominant proof. This is critical because the prospect typically will not admit he doesn't understand. If he doesn't understand the value proposition, most likely he will select the lower price. Dominant proof is evidence that everyone can understand, and there is no question about its accuracy.

It is easy to understand why contractors believe prospects only care about price. Typically, no one sees the 17 percent value based customers because they already have their contractor and don't go out for bids. Obviously, there is the 27 percent that only cares about price. However, if the contractor doesn't do its job explaining its value proposition, the 56 percent group will for too often buy based on price. In contrast, when the contractor gains the 56 percent group and combines it with the 17 percent that always buys based on value, you have 73 present of consumers buying based on value.

If the contractor wants to avoid competing on price. It must understand what is important to the prospect and then provide a value proposition that addresses those needs or desires.  Ted Garrison, president of New Construction Strategies, is a catalyst for change. As a consultant, author, speaker and radio host, he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances, and marketing. He can be reached at 800-861-0874 or by email at Speaking@TedGarrison.com. For further information see his web page at www.TedGarrison.com.

Submit your news or story idea CONTRACTORS AND SUPPLIERS

SMJ is on the lookout for interesting HVAC, architectural sheet metal, testing & balancing, or industrial / specialty projects to feature in its 2016 issues. If you have a cool project and 15 minutes of time to spare, you are a sure fire fit for the most meaningful, free-of-charge business investment you'll make all year.

We also need great historical pictures of people working in all aspects of the sheet metal industry. If you have some kicking around, take a picture of the photo with your cellphone and email it to our editor, Jessica Kirby, with a caption about what is going on in the photo.

Questions about how else to get involved in a future issue of Sheet Metal Journal? Reach out to jessica.kirby@pointonemedia.com or tel: 250.816.3671 and get the scoop. www.sheetmetaljournal.com • Fall 2015

25

IT'S THE LAW WITH FRIENDS LIKE THESE, WHO NEEDS ENEMIES? The Difficulty of Doing Business with Friends in the Construction Industry When undertaking a significant construction project, it often helps to know someone in the industry. However, a recent decision of the BC Supreme Court highlights the problems that can arise when doing business with friends or family in the construction industry.

By Andrew Delmonico and Anne Cochrane

The Facts

The recent BC Supreme Court decision in Malhotra v. Water Front Homes Ltd. concerned two families who had previously considered themselves the best of friends. The Manhas family, through its company Waterfront Homes Ltd., agreed to build a home for the Malhotra family (the “Project”). Although both Mr. Malhotra and Mr. Manhas were experienced businessmen, they were lulled into complacency as a result of their longtime friendship, such that neither thought it necessary to formalize the building arrangements through a written contract or to maintain proper financial records.

The Malhotras were dissatisfied with the workmanship on the Project. The relationship between the parties quickly deteriorated, liens were filed, and small claims actions were commenced. The Malhotras sought damages for negligent construction, in addition to damages for harassment, assault, and intimidation. Waterfront counterclaimed for payments alleged to be owing for work performed.

Adding to the complications arising from the informality of the parties’ dealings was their decision to “fiddle” with taxes to minimize the HST. Cash payments went unrecorded, resulting in an absence of proper documentation in the litigation.

Ultimately, the Court was required to sort through the parties’ biased and self-serving testimony in order to determine what really happened.

The Decision

The Court dismissed the parties’ claims in negligence, intimidation, harassment, and assault.

A primary difficulty faced by the Court in this case was that construction was paid for using various means, including personal credit cards, company cheques, and cash. This made it very difficult to determine whether individual payments related to construction of the Malhotras' home, or if the payments were used for other purposes. While the Court did find that the Malhotras had given Mr. Manhas $50,000 in cash for which he never accounted, the lack of proper documentation created an obstacle to greater recovery.

Lessons Learned

Maintain proper records, even when doing business with friends. If the project goes south, failure to maintain this documentation may result in losing not only your friends, but also your court case.

Manoeuvers to “fiddle” with taxes are not only illegal, but may prove more costly than the taxes would have been in the first case. 

This article was written by Andrew D. Delmonico, a lawyer, and Anne Cochrane, an articled student, who practice in construction law with the law firm of Kuhn LLP. This article is only intended as a guide and cannot cover every situation. It is important to get legal advice for specific situations. If you have any questions or comments about this case or other construction law matters, please contact us at (604) 864-8877.

© Can Stock Photo Inc. / Nikmerkulov

Get your hands dirty for SMJ Sheet Metal Journal is kicking off a product review campaign and we need testers. The process is easy: we get the latest in tools and technology and send you a list. You pick what you'd like to try, work with it for a while, and answer a few questions at the end. Doesn't cost you a dime, and we feature your expert opinion in the magazine. Doesn't get much better than that, right? We can't wait to get your hands on the industry's best so email jkirby@ pointonemedia.com to sign up.

26

Sheet Metal Journal

ADVERTISER INDEX INDUSTRY NEWS

Continued from page 5

The report shows that among contractors using the lean practices in the study, most report a wide range of benefits, including: • Higher Quality Construction (84 percent) • Greater Customer Satisfaction (80 percent) • Greater Productivity (77 percent) • Improved Safety (77 percent) Featuring in-depth interviews with highly collaborative contractors, the report notes that education about lean and the need for and benefits of increasing efficiency must be a major priority for the industry at large.

Read the SmartMarket Report Lean Construction: Leveraging Collaboration and Advanced Practices to Increase Project Efficiency at https://www.smacna.org/docs/default-source/ Market-Sector---HVAC/lean-construction-smart-marketreport.pdf?sfvrsn=0 

Statistics Canada Releases New RAIS Data Statistics Canada has just released its most recent data from the Registered Apprentice Information System, providing information for 2013. There were 469,680 registrations in apprenticeship programs during the year, the majority (77.3%)

of which were in trades with a Red Seal designation. Eightyfive percent of all registrations were men while women accounted for 14%. Data tables showing further breakdown of the results can be found on the Statistics Canada website at http://tinyurl.com/phu9u37.

Statistics Canada is conducting interviews with apprentices between September 8, 2015 and February 7, 2016 for its latest National Apprenticeship Survey. Check out this little video about how to participate: http://tinyurl.com/ojrsnxx. 

ENGINEER'S DESK

Continued from page 23 Considering the use of ENERGY RECOVERY and the correct sequence of operation will maximize the annual energy savings dollars for the owner and the comfort level of the building occupants. 

SHOWCASE SHOWROOM

Continued from page 19 Lawlor established the business 17 years ago with the primary goal of providing quality machines and support for clients in Western Canada.

“We are invested in people. We have machines, parts, service, and technical people on staff,” said Lawlor. “We are here for the long term.” 

There's more to SMJ than just our magazine and website. Do you use Facebook? Great! LIKE our SMJ Facebook page and keep up to date with industry news and online offers such as product testing!

advertiser index advertiser

page

phone

21

877.632.6859

www.101industries.com

11, 15

604.438.6616

www.bcica.org

Cascadia Metals

9

604.946.3890

www.cmetals.com

Crossroads C&I Distributors

14

800.663.6595

www.crossroadsci.com

ECCO Supply

8

604.530.9755

www.eccosupply.ca

FastEST Inc.

20

800.828.7108

www.fastest-inc.com

Frost Insulation Supplies, Inc.

13

604.535.7272

www.frostinsulation.com

Paramount Sheet Metal

24

604.942.1611

e: craig@paramountsheetmetal.ca

17, 19

604.430.3388

www.smw280.org

11

604.882.7680

www.smwtcs.ca

IFC, 10, 19

604.585.4641

www.smacna-bc.org

The HVAC Warehouse

22

888.927.6247

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