The Voice of the West Coast Wall and Ceiling Industry • December 2016 / January 2017
SECTOR HEATS UP for 2017 Driven by Public Infrastructure Funding, Potential Capacity Challenges Loom
Also in this issue: Green Building Trends Start 2017 Headed for Victory Training Culture at City Projects Publications Mail / Agreement # 40719512
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The Voice of the West Coast Wall and Ceiling Industry • December 2016 / January 2017
SECTOR HEATS UP for 2017 Driven by Public Infrastructure Funding, Potential Capacity Challenges Loom
Also in this issue: Green Building Trends Start 2017 Headed for Victory Training Culture at City Projects Publications Mail / Agreement # 40719512
The Trowel team Lara Perraton, Group Publisher lperraton@pointonemedia.com
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Jessica Kirby, Editor 250.816.3671 • jessica.kirby@pointonemedia.com Lara Perraton, Advertising Sales 877.755.2762 • lperraton@pointonemedia.com Christina Tranberg, Advertising Sales 877.755.2762 • ctranberg@pointonemedia.com
contributing writers Ron Coleman Andrew Delmonico Blake Desaulniers George Hedley Drew Smith Jeff Triggs John Wiebe
cover photo
Image courtesy of CertainTeed.
CONTENTS • december 2016 / january 2017 8 Sector Heats Up in 2017
Driven by public infrastructure funding, potential capacity challenges loom in Canadian construction.
11 Green Building Trends
iStock. Copyright AsherPhotography.
Published bi-monthly by
13 Start 2017 Headed for Victory
Point One Media, Inc. The Trowel P.O. Box 11, Station A Nanaimo, BC V9R 5K4 t: 877.755.2762 • www.thetrowel.ca 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 ©2016 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 Vancouver, BC. Return postage guaranteed. Canada Post Canadian Publications Mail Sales Product Agreement #40719512. Return undeliverable Canadian addresses to: The Trowel Circulation Department P.O. Box 11, Station A Nanaimo, BC V9R 5K4 e: circulations@pointonemedia.com
Journal of Record for
The industry is greening with techniques and technologies aimed at improving productivity and cost savings.
When was the last time you reviewed your business plan? Work better, not more in 2017.
14 Training Culture at City Projects
Moss Thomas is commited to helping develop a quality workforce in the wall and ceiling trade, one apprentice at a time.
16 Hats Off to Estimators
Estimators make or break the bottom line and deserve a tip of the hard hat for all they bring to the business.
Departments & Columns 04 editorial
19 contractors 101
05 drew’s rant
21 it’s the law
06 industry news
22 advertiser index
The Trowel is a registered trademark of the BC Wall & Ceiling Association. The Trowel is published six times per year expressly for members of the wall and ceiling industry.
In the next issue: Tools & Technology • Taxes & Books • Material Innovations
editor’s COMMENT
By Jessica Kirby, Editor
Bring it on, 2017 There is a certain anticipation this time of year drawing our attention to the finality of a full 365 days, guilt-free relaxation over the holidays, and the promise of a clean slate in the new year. Although I am indeed already thinking about how to impress you with my clever away message over Christmas, the bulk of my excitement is for the new year and what it will mean for construction and The Trowel. Coming this spring is a zero carbon building rating system from LEED, which will set the bar in the future of building construction. CaGBC’s framework released in November is the first stage of a broader Zero Carbon Buildings Initiative to champion the move to lower-carbon commercial, institutional, and high-rise residential buildings in support of Canada’s efforts to reduce greenhouse gas emissions by 30 percent by 2030. “Our focus on carbon emissions as opposed to energy in this framework flows from the increasing urgency to address climate change by reducing greenhouse gas emissions from
buildings,” says Thomas Mueller, president and CEO of the CaGBC. “By embarking on this important initiative, the CaGBC is providing the market with a state-of -the-art guideline and, soon, the third-party verification and support required to make net zero carbon buildings a reality in the near future.” The program is the culmination of consultations with approximately 50 individuals representing 40 organizations in the building sector. The working group undertook a comprehensive review of nine international net zero building approaches to develop a new system that facilitates broad participation across a range of building types and sizes and provides a clear definition for zero carbon buildings. The program’s details are all over the Internet if you want to see them, but the point is a distinct shift towards raising the bar on sustainable building practices, which benefits everyone and the planet.
Compounding the movement towards greener construction is an increase in infrastructure funding, destined to spark activity and signal an economic turnaround. Check out the feature on page 8 to find out what’s in store for general construction in 2017, and to drill down to what wall and ceiling contractors can expect, check out BCWCA executive director Jeff Triggs’ comment on page 10. Businesses, as well as people, can need refreshing this time of year and there is no better way to get better at running a business than to try something different. George Hedley gives us the rundown on page 13 and offers some tips to a refreshing 2017. We are looking at a fresh look and feel for The Trowel in the new year, as well as some exciting new section changes. Most of all, we at Point One Media would like to wish you, readers, contributors, BCWCA members and staff, and advertisers, a happy and peaceful holiday season and much joy and prosperity for 2017. ■
Our thanks to all our readers and advertisers who help to make The Trowel such a fantastic magazine. We wish you a very happy holiday season and a successful 2017.
Lara, Jessica, and Christina 4 » The Trowel
drew’s RANT NOT A DOLLAR STORE I have noticed on site and at shop classes at the BCWCA, the lack of knowledge about the costs of our daily used construction products. That said, I would like to start this rant by first thanking the supplier/manufacturer members of the BCWCA for their continued generosity in supporting your BCWCA Training Centre. The suppliers and manufacturers are an integral component in the success of our class/shop training. They continue to step up and supply us with shop materials and supplies when called upon and allow us to provide our young workers with hands-on experience using quality products. Many thanks to all. On site, as you are all aware, we constantly witness studs, tracks, beads, drywall materials, tbar, and so on being damaged and destroyed due to the lack of understanding that these products are all expenses that our employees have invested in for the profit and successful completion of our projects. I make it crystal clear in my classes that in addition to being safe on site on a daily basis, we must remember that as employees we must strive to “make the boss money.” I end every week of classes with this statement. I reiterate to my youth that we must strive to look after the best interests of our employers. If the employer isn’t successful on the project the result could be that they cannot continue and therefore we will be unemployed. We need to drive this message home with our young workers.
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I instruct our students that we do not operate as a dollar store, that each piece of material be considered a five dollar bill. Mishandling, abuse, and theft are not acceptable and are equivalent to throwing our employers’ money in the garbage—an immediate and unnecessary loss to our employers. At no time is this an acceptable consideration in my shop classes or on any of your sites. Unfortunately, most of the time in my classes, this is the first time someone has pointed this out to our young workers. Education on the care and handling of our employers’ materials and supplies must be stressed to our young and old on a regular basis. Perhaps at weekly tool box/safety meetings? In addition to site damaged materials, we also encounter the “other trades” using our materials as a given. No! I instruct my classes that these materials are the property of our employers; therefore, they are our responsibility. I advise my apprentices, although they may not be in a position of authority on site just now, they soon will be and they must watch for the pilfering of our materials by others and advise their superiors on site. If our friends on site need backing materials then we can direct them to our scrap steel areas and we can designate these scraps to them. For this courtesy we would expect that they clean up the balance of scrap when no longer needed. When pigs fly, right? Our boxes of screws are not delivered by the screw fairy. They are not free. When not needed for the task at hand they need to be secured. It is rare that our friends on site, you know who they are, actually buy their own screws. We can help our friends on site and still protect our employers’ investments in these materials by having the discussion. My framing materials are not free; my boss didn’t estimate to supply other trades with something as simple as a box of screws. As I mentioned earlier,
By Drew Smith, BCWCA Photo courtesy of Sarah Dunlop all are expenses to our employers and we must be aware and considerate of his investment in the project. His money. Our responsibility. I will, however, with my employer’s blessing, make an arrangement with our friends on site for a trade. A benefit for both parties. A box of screws or a bundle of steel for maybe some quality extension cord cable, some male/female ends—not a case of beer. We could call it a Trump Deal. Humour intended. The end result is both parties win. Not a clear loss for our employers, a good outcome. As a supervisor on site and in my classes at BCWCA, I make it quite clear that if you see our materials lying on the ground, possibly in harms way, they are not penny or dollar store materials. They are in fact the boss’s investment in the project, and you are responsible for their keep. Consider any stick of material to be a five dollar bill. So I would ask, would you stand on or walk past a five dollar bill or would you take the time to pick it up? In closing, as this is our last issue of The Trowel magazine for the year. I would like to take this time to thank the publishers and our readers for the opportunity to write these rants of mine. I hope you have and will continue to enjoy the publication. Maybe they’ll keep me around next year? That said, on behalf of myself, Leesa Matwick, Jeff Triggs, and the board of BCWCA, we wish you and yours a happy, healthy, successful holiday season and New Year. The best is yet to come. Cheers! ■ wallandceiling.ca » December 2016 / January 2017 » 5
industry NEWS Addressing Urgent Housing Needs in Northern and Inuit Communities The Government of Canada is committed to addressing urgent housing needs in Northern and Inuit communities through significant investments of up to $167.7 million from Budget 2016. This funding will not only address the shortage of housing, it will also have a positive impact on health and socioeconomic opportunities. Three Inuit regions have now received $80 million earmarked in Budget 2016, delivered through Indigenous and Northern Affairs Canada, to address housing needs in three Inuit regions— Nunavik, Quebec; Nunatsiavut, Newfoundland and Labrador; and, the Inuvialuit Settlement Region in the Northwest Territories. Budget 2016 also provides $96.7 million over two years to the territories through Canada Mortgage and Housing Corporation’s Investment in Affordable Housing (IAH), to address urgent housing needs in Northern communities, including Yukon, Northwest Territories, and Nunavut. “Investments in housing in northern regions will help address overcrowding
and major repair issues,” said Yvonne Jones, parliamentary secretary to the Minister of Indigenous and Northern Affairs and Member of Parliament for Labrador. “The Inuit regions suffer from the highest rates of overcrowding amongst any group in Canada. This funding is part of Canada’s goal to recognize and enhance the relationship between Canada and the northern regions, and will build on existing initiatives, boosting the economic participation in the northern regions.” For more information please visit https://www.cmhc-schl.gc.ca/ ■
EIFS Council of Canada announces Architectural Design Awards Program The EIFS Council of Canada officially announced its inaugural Architectural Design Awards Program to honour design professionals and firms that incorporate EIFS products into innovative and creative built projects. “With this Awards Program, the EIFS Council of Canada wants to recognize and honour projects that have used EIFS in an innovative way,” says John Garbin, president and CEO of the EIFS Council of Canada. “The goal of this Awards Program is to create a new benchmark in EIFS construction.
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The use of EIFS will help us realize Canada’s national objective of creating resilient, sustainable buildings.” The Awards Program is open to all architects, architectural firms, builders, and design professionals who designed and completed a building located in Canada that utilizes EIFS. Eligible buildings must be occupied no sooner than January 1, 2015 and no later than January 31, 2017. Eligible applicants may submit their projects in one of five categories: 1) low-rise residential, 2) high-rise residential, 3) commercial/ retail, 4) recreational/institutional, and 5) renovation. Registrations to determine eligibility are open until January 30, 2017. All applicants that have been deemed eligible have until April 7, 2017 to prepare their electronic submission packages. Submissions must be received no later than 12:01am April 7, 2017. Award finalists will be announced on May 7, 2017. Award recipients will named in a press release and featured in articles submitted to prominent Canadian architectural and construction publications. There will be one grand award winner with a maximum of two honourable mentions for each category. Award recipients will be honoured at
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industry NEWS the EIFS Council of Canada Annual General Meeting and Awards Reception on June 13, 2017. For more information on the EIFS Council of Canada Architectural Design Awards Program, please visit http://eifscouncil.org/eifs-designawards-program. ■
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NCSO Designation Coming January 1, 2017 As of January 2017, a National Construction Safety Officer (NCSO) designation for British Columbia will officially replace the Construction Safety Specialist (CSS) currently offered by BCCSA. “I am very pleased to confirm that the NCSO application will be live on our website as of January 1, 2017,” said Tammy Oliver, director of operations. “In preparation for the changeover, we have been finalizing the online NCSO application process and student portal; reviewing, revising, and/or developing mandatory courses we will be responsible for delivering; and organizing an instructor workshop to train on the delivery of those courses.” As of December 31, 2016, the Alliance will no longer accept applications for the CSS designation, but there will be a transition period for those who have started course work (the deadline is August 31, 2017). After that, the NCSO will be the only credential the Alliance delivers and promotes. Although the CSS will never expire, Oliver encourages individuals to explore the additional benefits of the NCSO. Canada wide, the NCSO designation will replace a variety of provincial credentials that are similar in nature, and is considered to be good news for safety professionals and employers alike.
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SECTOR HEATS UP for 2017 Driven by Public Infrastructure Funding, Potential Capacity Challenges Loom
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By / Blake Desaulniers iStock. Copyright AsherPhotography.
T
o say that President of Canadian Construction Association Michael Atkinson is stoked about prospects for the Canadian construction sector in 2017 would be an exercise in understatement. Where the industry saw softer years in 2015 and 2016, the coming year shapes up to be a return to near capacity engagement, a turnaround due mainly to announced federal and provincial infrastructure program spending. “After seeing weaker conditions, especially with low oil prices and the fire in Fort McMurray, we’re hoping to see a lot of the huge commitments to infrastructure hit the street in 2017,” Atkinson says. With new commitments from the federal government, planned infrastructure spending now totals $146 billion over 12 years. Additionally, two new pipeline projects announced late in 2016 will further boost capital spending.
8 » The Trowel
“It’s certainly a tidal wave of money, and it’s very encouraging, looking at the federal government commitment alone. The new government doubled planned spending when it took office. Ontario is making an unprecedented commitment. And there are others,” Atkinson says. “In past, governments have been focused on spending cuts. Now there’s an understanding that fiscal debt management is useless unless you invest in growth,” he says. Canada’s low debt/GDP level and current low borrowing costs combined create “a perfect storm for reinvestment,” Atkinson notes. Much of Canada’s infrastructure was built 40 to 50 years ago, and has reached the end of its useful life. Spending on new infrastructure is expected to directly return a dollar-and-ahalf for every dollar spent. The stimulative impact can also be © Can Stock Photo / vladiislav
“Hopefully cooler heads will prevail and understand that protectionism doesn’t lead to a better outcome.” incoming US administration. “We’ve worked hard to bring down trade barriers. We’ve put effort into improving labour mobility and getting inter-provincial recognition,” he says. That having been articulated, it’s worth noting that a possible renegotiation of NAFTA could work in Canada’s favour. “We were hung out to dry under the Obama administration, because the funding came down to the state level,” Atkinson says. Unlike the federal administration that must open bidding opportunities to NAFTA signatories, individual states are under no such obligation. “Any changes obviously remain to be seen. Hopefully cooler heads will prevail and understand that protectionism doesn’t lead to a better outcome,” he says. President of the Independent Contractors Association of BC, Phil Hochstein, also expresses optimism looking ahead. On Vancouver Island, major public projects have the sector humming. With the John Hart dam replacement project, two hospitals, and seismic upgrades all going on at the same time, construction resources are stretched to near capacity. “The activity at the north end of the Island is at a level we haven’t seen in years,” Hochstein says. He notes a hot market in Nanaimo residential and unprecedented activity in downtown Victoria. expected to boost private sector confidence and spur further expansionary spending by business. Another important government factor, an increase in immigration will also drive demand in the construction sector. Immigration Minister John McCallum recently boosted the base number of immigrants allowed into Canada next year to 300,000, to help drive economic growth as the country grapples with an aging demographic. Rising demand, however, could be a double-edged sword. It’s worth noting that the US now plans a trillion-dollar infrastructure spending program, a massive sum that, along with Canada’s stimulus spending, could strain available North American resources going forward. Also of concern to Atkinson is the recent trend toward protectionism—as in the Brexit vote and in rhetoric from the
“Private sector development is the highest I’ve seen in 14 years,” he says. “Within a six-block circle around the legislature buildings, there is $4.5 billion in work going on.” Most of the construction is commercial, office, and high density residential. “Large chunks of the city are up for redevelopment—areas of one or two square blocks. Demand for multi-storey residential is clearly there. It’s kind of coming to a peak after bottoming out in 2008. Single family home prices are very high. But people can get into smaller spaces for $350,000 to $400,000. We’ve also got low interest rates. Money is cheap for buyers and for developers,” Hochstein says. Housing has also come back in the southern interior of the province. Kelowna and Kamloops are reported to be very busy. The only soft spot in BC, the northern part of the province, wallandceiling.ca » December 2016 / January 2017 » 9
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Sector Heats Up
still lags due to a lingering bear market in commodity prices. There are projects on the boards awaiting final investment decisions. In Vancouver, activity is accelerating around Canada Line nodes. Residential towers now occupy all four corners of the station at Cambie and Marine. The Oakridge project is on the boards further north at 41st. “The area between Oakridge and Marine Drive along Cambie will continue to fill in,” he says. Overall the provincial picture shows $329 billion in projects upcoming over the next eight years. The promised infrastructure spending, Hochstein observes, will have an effect he likens to tossing gasoline on a roaring blaze. The money is welcome, but there are going to be challenges. “If we have a challenge in the province, it’s getting qualified labour. We have about 210,000 people working in the sector now, that’s 10 per cent higher than last year. Two thirds of our workforce is over 45. Some people have come in from Alberta, but we’re still forecasting a long term shortage of 15,000 workers in the sector,” he says. “Prior to 2008 owners had a hard time finding contractors. Capacity had been reached. We’re starting to see some of that now,” he says. ■
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Wall and Ceiling Trade in 2017 By / Jeff Triggs The most pressing issue facing the wall & ceiling trade moving forward is the uncertainty faced while awaiting the decision from the Canadian International Trade Tribunal’s (CITT) hearing on the dumping of American manufactured drywall into the Canadian market. The outcome of the hearings will provide certainty on costs so businesses can act accordingly with respect to existing jobs and future quotations. The BCWCA is currently working with the Industry Training Authority and Finishing Trades Institute to update delivery of our wall & ceiling Installer Program from four modules to three levels. In addition to bringing us in line with other trades, this will allow us to modernize the curriculum. It will also help our instructors guide their students in their preparation for the Red Seal exam and work back in the field. Any Red Seal tradesperson with five years of experience is welcome to join the process. As mentioned previously, adjusting to the potential tariffs on drywall is one challenge for 2017. We will get an announcement from the CITT on January 4, but I foresee the issue dragging out in the event tariffs are implemented as their may be pressure on the Minister of Finance to make adjustments. The CITT may make recommendations based on the Public Interest Issues addressed during the hearings. The Minister may then decide to act upon them. Another challenge is the demographics of our industry. Labour has been tight and will continue to be so in the future as older workers retire from the trade. To prepare for this, wall & ceiling contractors must continue to support training so that the work force is renewed. Apprentices that work hard and show a willingness to learn and take on responsibility are the future of the trade and should be supported in their efforts. The BCWCA hopes to offer solutions for industry by solidifying our current efforts in training and potentially expanding our program offering in the future. Season’s greetings to all from the BCWCA!
Green Building
TRENDS by / Jessica Kirby
Condo project at the Mandarin Oriental in Las Vegas featuring AirRenew. Courtesy of CertainTeed.
W
ith every new year comes new trends and developments in materials and design, and the wall and ceiling industry is no exception. Some of the most prominent trends for 2017 relate to greener building practices and building codes, as well as slick new aesthetic trends for the coming 12 months. Building codes across Canada at the federal and municipal levels are mandating greater energy efficiency, which translates into more efficient mechanical systems and the walls and ceilings to suit them. In some cases this means more wall space to accommodate larger or better insulated systems, and in some cases it means revamping space constraints altogether thanks to smaller or ductless systems. Part of the push toward greener building and sustainable practices is the development of higher building
code standards and cleaner materials. An important trend moving into 2017 is the use of insulated metal panel systems, now complete with uniquely innovative thermal and moisture control technology. According to Kingspan, insulated metal panel manufacturer, the products comprise an insulated core material (usually polyisocyanurate) sandwiched in place between metal, pre-coated skins. An interlocking joint provides a weather-tight system that delivers high R-values and airtightness, and renders the panel ready for just about any application requiring air and water tightness. Individual manufacturers employ their particular brand of weatherproofing— Formawall, for instance, offers a pressure-equalized seal plate that addresses air and water infiltration with a curtainwall approach, creating
pressure equalization at the end joint of every panel and shielding against water infiltration in multiple ways. Other benefits include highperformance for sustainable building envelope design, single-component assembly and design flexibility, and while price still remains a comparative factor, evolution in building codes and building rating systems will drive demand for these and other highinsulating components, especially in the wake of infrastructure funding announcements for 2017. With existing buildings producing 12 percent of Canada’s GHG emissions, there leaves a wide berth for the renovation market, which is set to grow by as much as 30 per cent over the next three years. Trends in this area are materials and components that improve air quality, move and reflect light for greater use of natural light, and eliminate off-gassing. wallandceiling.ca » December 2016 / January 2017 » 11
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Green Building Trends CertainTeed has made waves over the past couple of years with its AirRenew gypsum board, which has science to back up its ability to improve indoor air quality in its applications. The board traps VOCs and renders them inert inside the product, and can last up to 75 years. From a manufacturing perspective, prefab components are seeing an increase in use and application—modular framing systems like those at GreenTerraHomes offer endless design opportunities in the
Photo courtesy of CertainTeed.
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housing market—set to boom in 2017 – 2018—and modular compartment developments like the Westgate Manor site in Edmonton, supplied by Ladacor Advanced Modular Systems are busting tight timelines and enhancing design flexibility. Offsite fabrication of concrete and steel components saves time, waste, and space, and is expected to increase over the next five years in response to growth in single family and multi-unit residential and the impending labour shortage. Technology continues to grow and change and push further into construction as a mainstay service. BIM systems are enhancing their user friendly interfaces and also include collaborative integration that applies to and invites participation from subtrades earlier in the game. Though the dominant form of technology taking market share for this year and next, it pays to keep an eye on laser scanning technology as well—a system that allows for recording a 3D digital reproduction of a space, including its dimensions, context, and objects within. On the design end, companies like Daisy Cake and Shimmerscreen are ramping up colour and texture possibilities in commercial applications with changeable linking screen walls that add subtle but impressive dimension to any sized rooms, especially vast spaces where translucent wall materials create division without separation. They technically fall beyond the walla and ceiling scope, but they cast a bit of light into colour and style trends for the coming year. In terms of markets, there are politics as work delving little more than uncertainty for the industry at the moment—the price of steel, softwood lumber, NAFTA, and duty tax on drywall are all sending the pricing markets into a flurry. Commentary varies, but if nothing else, change is on the horizon as Canada forms new and interesting relationships with the new US administration and the global community at large. ■
Start 2017 Headed to By / George Hedley
Y R O ICT
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Photo: © Can Stock Photo / ryanking999
I used to race Harbor 20 sailboats. It was fun and exciting, but difficult to win against the sailors who really knew how to tune their boats and take the right line to maximize the wind. As a competitive person, I would try to be aggressive and get to the front of the pack, but it was not easy to beat the better sailors. What I noticed was the regular winners would always seem to be first off the starting line. They worked hard to get to the right spot at the front of the fleet to get clear wind and the fastest line to the next mark. They had the systems and techniques to win and knew the best route better than all the other racers.
What’s Your Path To Victory? As we start the new year, I notice that the top construction business owners implement the best techniques and have a clear path to achieve a winning year. They have standardized systems everyone uses and a written business plan they follow to find the best customers, projects, and people to maximize their bottomline. Get your year started headed in the right direction by identifying one or two systems you need to get installed in your company. Write down your path you’ll take to achieve your goals. Stay ahead of your competitors by focusing on the right strategies, and don’t get off course and distracted by following slow boats or old techniques that don’t get you to the front of the line at the finish.
Business Owners had a Busy 2016 They had more work but not enough time or resources to get everything done. There were lots of opportunities to win more jobs and increase revenue, but they were too busy to handle all the details and maximize the bottom-line. There was more
work than people to do things the way they should be done, and lots of items left on the to-do list. Now what? What will you do different in 2017 to make it a better (not bigger) year? I just got off the phone with a member of our mastermind peer Biz-Group who’s closing out his year. His sales were up, but total gross and net profit were less than last year. He is busy, tired, and not happy. He admitted he made a few mistakes because he was too busy doing too much himself and not getting the help he needed. He hit his goal for bigger, but missed his goal for better. We next discussed his action plans for next year and talked about restructuring his management team, moving him up to the role as president, and not acting as field or equipment manager anymore. To make that happen, he will have to try “different.”
Being Busy is not a Better Goal Over the next few weeks, make some time to decide what you want to happen in 2017 – bigger or better? And then you must take time to draft a plan to achieve exactly what you want. Make tough choices about your customers and project types, people and management team, estimating and job cost accuracy, systems and standards, and profit and pay. A busy business keeps you busy doing things faster and faster. Busy keeps your key people overworked without time to plan, prepare, think, bill correctly, or get change orders approved before you do the work. Busy doesn’t allow time to sit down with your foreman to review their job cost production reports every week to make adjustments to improve their results. Busy doesn’t allow you to go out and find better customers or projects with less competition. Busy forces you to make quick decisions without proper research or due diligence, like Continued on page 22 wallandceiling.ca » December 2016 / January 2017 » 13
Training Culture at CITY PROJECTS Moss Thomas at City Projects has created a culture of success for people at his contracting business where investing in the future of apprentices and the industry is a given.
By / Jessica Kirby
C
ity Projects received a Plaque of Recognition from the BCWCA at its AGM in May to celebrate the company’s staunch commitment to supporting the training program and the development of a skilled workforce in the wall and ceiling trade. BCWCA training co-ordinator Leesa Matwick said City Projects owner Moss Thomas has put at least three apprentices through each class offered since the training centre opened its doors in 2010. “The calibre of apprentices is high,” said Matwick. “They are motivated, enthusiastic, energetic and very respectful. “He is tremendously supportive of our program and in some cases we have been able to hold onto classes because 14 » The Trowel
we know we can count on those three he sends us.” City Projects Ltd. is based in Burnaby and celebrated 30 years in business this year. It specializes exclusively in tenant improvement work with projects varying from multi-floor tenant improvement build-outs to smaller client driven service work. Eighty to one hundred personnel work for City Projects, and it has almost become part of the culture of the business that those who have good attitudes and work hard are mandatorily sent to training as agreed upon at hiring. Thomas’ commitment to training stems from his own experience and the desire to contribute to a supported, skilled workforce.
When he started his lather apprenticeship in 1969, he was fortunate to receive a broad, full range of training in all facets of the trade, working alongside excellent tradesmen, he said. He recalls the high quality process: “The ratio was one journeyman to one apprentice, providing a continuum for both numerical and skills training growth. The apprentice remained with the same journeyman for as long as possible. Each apprentice had a log book given him to ensure he was getting the full spectrum of training in the full variety of skill sets that would meet the Red Seal requirements. If there were prolonged/excessive durations at one particular task, the apprentice was moved to another company if necessary, to ensure that all-round training was being invested into every apprentice.”
In starting City Projects, Thomas wanted to ensure the same level of thorough quality training was in place for every new employee—both with new hires and providing up-grading for non-Red Seal tradesmen. “Thus, City Projects is extremely appreciative of our strong alignment with the BCWCA and its trades training program,” he said. Quality training is also essential in City Projects’ employees carrying out the company’s expanded scope of work, which includes demolition, architectural doors and hardware, and glazed partition and glass door systems.
Photo courtesy of City Projects Ltd.
“With the BCWCA training program at the core, it simply leaves our inhouse foremen and superintendents to fill in the on-site training required to create specialty tradesmen, capable of completing the full scope of work,” said Thomas. Based on his experience, Thomas recognizes most of today’s wall and ceiling tradespeople are not Red Seal certified. The disparity created by that fact causes a number of problems in the field, such as trades turnover, inferior quality, and costly on-site errors. “When a tradesperson is limited to only one or two components of our trade, the turn-over of employees to complete the balance of work creates a revolving door of manpower to ensure a project is completed,” he said. “This situation also requires retaining multiple tradespeople to accomplish what one Red Seal journeyperson ought to be able to do. This industry-generated cycle is both stressful and costly. Every day a tradesperson or apprentice is on a job-site, he or she is learning at the contractor’s expense, including costly mistakes.” Contractors can count on a strong, skilled workforce by investing in apprentice education and training at the
Photo courtesy of the BCWCA.
BCWCA training centre, and Thomas can’t say enough about the benefits for the employer and apprentice, as well as the industry in general.
tax incentives as encouragement to employers, as well as up to $4000 in grants and $2000 in tax credits available to apprentices.
Considering the current labour shortage, which will only get worse over the next decade, an investment in training can bring labour insurance to companies willing to take employees to the next level.
“Most of all, whenever it is in our power to do so, it is of immense lifelong satisfaction to use our station in life as contractors to provide young men and women with career training of the highest caliber so they may become fully established and equipped with Red Seal trade certification,” he said.
“When a dependable and enthusiastic employee is on the payroll, it is highly likely a contractor can turn that worker into a Red Seal tradesman of immense value – both to the company and to the individual – by investing in and [encouraging him or her to] complete the training provided through BCWCA.” He points to nominal government
“This is, for them, one of the core essentials in becoming respected and valued members of society. We are a key part of that respect and value.” Learn more about the BCWCA Training Centre at www.bcwca.org and visit City Projects Ltd. online at www.cityprojects.ca. ■ wallandceiling.ca » December 2016 / January 2017 » 15
HARD HAT to Construction Estimators
© Can Stock Photo / flashon
A Tip of the
By Katie Pickard
T
hose of us in construction know that estimators are some of the hardest working champions of any construction project team. They bear the burden of speed, accuracy, and diligent communications that make or break the launch of every project. They are not only responsible for determining a competitive win-ratio, but also in laying a sturdy foundation of records for the project manager and crew who will see that project through to completion. In today’s competitive market, every bid is a contest, and estimators must be ready to put in whatever number of hours it takes to win as many of those contests as possible. One of the toughest realities all estimators must accept is the inevitability that some bids will be lost, even after days or weeks of earnest effort and meticulous calculations. While it’s tough to lose some bids, it’s inevitable. You can’t win them all. All estimators, at some point, have questioned their own work. “Did I leave out a section of takeoff? Was my pricing accurate?”
16 » The Trowel
These pressures are felt more strongly by those still braving the minefields of manual takeoff and bidding from paper drawings. Without the assistance of digital tools, estimators risk pitfalls such as duplicating or miscalculating results, missing changes on revised drawings, or just running out of time to meet the demand of overlapping deadlines. Calculating manual takeoffs and responding to change orders from paper blueprints puts your estimator laps behind construction companies using software and digital plans. It’s proven that takeoff and estimating software greatly increases your bid-win ratio and profits.
The estimator’s ability to win a bid, despite these risks, is worthy of applause. So is their ability to set up their project manager and field team for success with accurate calculations. No construction company can survive without good estimators. They are the MVPs, the champions, who must be masters of math, sales, communications, visualization, and people. So, what type of support are estimators looking for? Some heartfelt appreciation for a job well done is a good start. Support from a trusted digital software solution to help them do what they already do well, but much faster and with more efficiency and accuracy, would be welcomed. Don’t forget your team champions for a gift during the holidays!. ■ Katie Pickard has been a solution architect and trainer at On Center Software since 2011. Ms. Pickard trains clients in the use of On-Screen Takeoff, Quick Bid, and Digital Production Control. She has a BA in Economics from Randolph-Macon Woman’s College in the U.S. and completed study in Business Economics with Computing at the University of Surrey, United Kingdom.
Where’d the Wall Go?
Missing a Small Detail Can Cost You Big Time Searching through drawings for revisions is a contractor’s version of “Where’s Waldo?” Your profit depends on diligently tracking plan revisions or your crew gets walloped with days of rework at your cost, simply because a wall went from 6m x 3m to 3m x 3.6m. It’s time to go digital with the industry’s No. 1 solution, On-Screen Takeoff®. Instantly spot conflicts and details of changes with On-Screen Takeoff’s powerful color-coded overlay feature. The digital plans show you exactly what is new in blue and what is old in red. Hours of comparing paper plans are eliminated with this advanced, easy-to-use software.
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feature FOCUS CUSTOMERS FLOCK TO TRIAD BOOTH AT THE BCMC SHOW FOR UNVEILING OF NEW TRIDENT BRIDGE Triad has always been the leader in the wall building industry and has again taken panelization to the next level. The Trident Panel Nailer/Stapler Bridge was unveiled during the BCMC Show in Knoxville, TN on October 19, 2016. The builders spoke and we listened. The Trident Bridge was engineered with current and potential customer input. The new bridge incorporates a 3-gun programmable carriage that gives builders flexibility without compromising speed and efficiency. The Trident bridge is easily controlled with either a joystick or hand crank as well as a touchscreen for on center spacing. The carriage is lined up with a laser and goes across each stud utilizing all three tools as it does. The bridge can detect openings and does not fire the tools as it glides over the top. The Trident Bridge is more efficient than
single tool bar bridges with its unique bi-directional nailing, and always at the ready carriage system. The innovative design of the Trident Bridge is a direct result of a cooperative effort from engineers to production level and avoids the fallacy
of automation for automation’s sake. The Trident Bridge will fit existing Gen II Sheathing Stations as well as Diamond Quad Tables. More than just machinery, it’s a tuned, integrated bridge that helps wall panel manufacturers have flexibility with tool spacing, selections of tool types, and speed for production. If the reaction at the BCMC Show is any indication, it appears Triad has come up with yet another product the industry has been looking for. Precise, square walls with reduced labor costs, increased productivity, and increased profits—Triad, the forerunner in the wall panel industry, understands what it is all about. For over 50 years Triad has been the leading manufacturer of automated, semi-automated, and manual wall panel equipment, as well as the automated CNC StairBoss and now the manual Template Stair Router (TSR). No matter if you are a high volume or a low volume operation, Triad has the experience you need and the right answers to help you grow. Remember “Keep Calm and Take Control” with Triad. If you are interested in increasing production and decreasing costs please call 800-568-7423 (ext. 133). ■
18 » The Trowel
contractors 101 THE ONE AND TWO MAN BUSINESS: PART I There is a surprising number of small businesses in Canada, particularly within the trades. Setting up as an independent trades contractor is a very simple process for someone with the trade qualifications. It’s easy to lease a truck, you probably have most of the tools, and away you go doing services and retrofit in residential or light commercial work. The freedom of being your own boss is intoxicating, but even the best of hangovers wear off and we have to realize that we are not only plumbers, HVAC experts, or insulators; we are also business people and need to put that hat on from time to time. Running a small contracting business with one or two helpers and your spouse helping out with the paperwork is a very common scenario. There is nothing wrong with doing this but most of us could do it a bit better. Here are some guidelines to help you make more money and have more fun. First of all, if you are going to stay as a one- or two-person business you have really bought yourself a job not a business. You can’t get fired, you have a number of clients and can replace any you lose, and you are not answering to a boss. Most contractors tell me the reason they started their business was because they were either unemployed or did not like the working environment they were in. Very rarely will someone say I left a great job making good money to start on my own. They tend to be running away from being an employee and see their own business as the best way out. Many of them are right, but unfortunately many end up not being nearly as successful as they should be. In this two-part article we will cover of some ideas that can help the small contractor become more successful.
By / Ron Coleman
Sage 50 are the two least expensive programs that would meet your needs. Keep your records up to date. CRM Program: CRM stands for customer relationship management software. There are a number of those programs on the market. Zoho and Insightly are two that work for small businesses. Use your search engine to see what program might work best for you. Don’t go fancy. Pricing work: Don’t try to be cheap. It won’t get you much work. It will get you the price conscious, high maintenance customers. Focus on providing value and charge for all the services you provide and don’t forget to charge for using special equipment and for supplies. Develop checklists for getting more work from each customer and make it a goal to get virtually every customer on to an annual service plan.
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I believe the two most important traits for an independent business person are self-discipline and common sense. I recall someone saying to me about one of our local politicians: “he has lots of common sense; he must have because he hasn’t used any of it yet.” There are certain things you have to do each day/week/month/quarter and annually. If you do them as you go, they won’t pile up and you will have less stress and make more money.
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The following items are in no particular order but all need to be addressed, except for the fact that you should start off by getting a business licence. Bookkeeping: If your spouse is going to do the bookkeeping make sure she understands what’s involved. If not, get a qualified bookkeeper to set up your systems and to do a monthly or quarterly review. Programs like Quick Books and
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www.nwgypsum.com wallandceiling.ca » December 2016 / January 2017 » 19
contractors 101 “Building a business is a little like filling a bathtub. It happens gradually, but it will take a lot longer if the stopper is leaking.” Take at least two hours every week to review every invoice and work order to ensure you charge the full fee on each; and, spend two hours thinking about and implementing improvements you could make in the business (this is where the self-discipline really comes in, because without action there is no change). Ideally, use quoted prices or flat rate pricing as much as possible; this reduces the paperwork. Anything that you can do to reduce your time doing support work is good. Building a business is a little like filling a bathtub. It happens gradually, but it will take a lot longer if the stopper is leaking. There is no sense in bringing in five new customers if four of the old ones are leaving. Make sure you keep the leak plugged by ensuring your customers are delighted with your service. Sixty-nine percent of the time when customers change suppliers it is because of perceived indifference. Ask your new customers why they chose you over someone else and make sure that you are true to that reason.
Often, when starting up our businesses we just use our name and off we go. There are some considerations we need to put in place. First of all we need to ensure we can use the name we pick. Use your search engine to see if anyone else is using it. Go to your local Chamber of Commerce they will help you register your name. It is frustrating to find you have spent money on signage, business cards, and websites only to be told that the name belongs to someone else. Starting off as a sole proprietor or as a partnership is often a good way to go initially. But as we progress we need to consider the advantages of forming a company. Whichever way you go, the biggest problem I see with many start-ups is that they don’t put aside enough money to pay their commitments to PST/GST/HST/Worksafe premiums and the personal tax liability that comes at the end of the year for the owner. By not setting aside enough money for these expenses most contractors dig themselves into a hole that takes several years to dig out of and they end up paying significant amounts in penalties and interest and often get audited. In part two of this article we will deal with the issues that you are likely to face with the Canada Revenue Agency and Trust Liabilities and how to deal with them in the most effective manner. Staying under the radar with CRA is critical and we will explore how that is best done. See you in part two! ■ Ron Coleman helps make the ownership transition of trade and specialty contracting companies more successful. He ensures that businesses are attractive to buyers so that both seller and buyer enjoy a win-win situation. His book Becoming Contractor of the Year will show you techniques you can use to make more money, have more fun, and make your business more saleable. Need a speaker for your next conference? Give Ron a call. Visit Ron at www.ronaldcoleman.ca and review his other publications and resource materials for contractors.
Are you working on an interesting or challenging project? Tell us about it. Contact our editor, Jessica Kirby, at jkirby@ pointonemedia.com or by phone at 250.816.3671. 20 » The Trowel
it’s the LAW WINNING THE BID – THE IMPORTANCE OF FOLLOWING PROPER TENDERING PROCEDURES British Columbia’s competitive construction industry sees its fair share of intense bidding wars between contractors. To avoid the risk of underbidding, contractors may be tempted to submit their bids at the last possible second to include the latest quotes and ensure cost projections are as complete as possible. In doing so, however, contractors must still follow the proper tendering procedures. In the case of True Construction Ltd. v. Kamloops (City), the B.C. Court of Appeal upheld an owner’s decision to refuse a contractor’s non-compliant bid, even though it was the lowest submitted.
Facts In this case, the City of Kamloops (the “City”) issued an invitation to bid on the construction of a new fire hall (the “Project”). One of the tender requirements was for contractors to include a list of subcontractors to be used at the Project in an appendix to their bid. However, the contractor (the “Contractor”) submitting the lowest bid initially failed to include the appendix containing this information. Although the Contractor later faxed the required appendix to the City, the City refused to permit faxed revisions to its bid. Ultimately, the City determined that the bid was defective. The contract for the Project went to the next-highest bidder and the Contractor sued the City for damages.
The Decision The Court of Appeal agreed with the City that the Bid was not tendered correctly. The list of subcontractors was found to be critical in determining the proper party to be awarded the contract for the Project. The Court further held that the Contractor had taken advantage of the tendering process by faxing the appendix containing its list of subcontractors after its bid was originally submitted. This resulted in an unfair advantage to the Contractor, who was able to continue negotiating its subcontracts even after its bid was submitted. Because its bid was not legally capable
Did you know Point One Media publishes four other trade publications? They are: forestindustry. com, Sheet Metal Journal, Solid Waste & Recycling, and TIAC Times. Find out more online at www.pointonemedia.com
By / Andrew Delmonico and John Wiebe
of acceptance without the appendix, the Contractor was able to wait until the last possible moment to determine whether the Project would be profitable before finalizing its bid. If the price of its subcontracts turned out to be too high, the Contractor could simply withhold the appendix and refuse to finalize its bid. Those contractors who submitted a binding bid including their lists of subcontractors would not have the same option to walk away if the accepted price turned out to be too high. The court refused to allow the Contractor to gain an advantage by failing to follow the material terms of the City’s tender. In its decision, the Court focused on the need to uphold the integrity of the tendering process. Whether the Contractor actually did secure an advantage was seen as immaterial. The real issue was whether the Contractor’s practice created a potential competitive advantage and undermined the integrity of the bidding process. Ultimately, the Court found that it did and the City’s decision to exclude the non-compliant bid was vindicated.
Lessons Learned When submitting a bid in a tendering context, be sure to follow all the requirements contained in the invitation to tender. Owners often reserve their contractual right to disqualify improper bids, even if they are the lowest. Even though bending the requirements of the tender might appear to Continued on page 22
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advertiser INDEX INDUSTRY NEWS Continued from page 8
Holders will be able to work as safety officers anywhere in Canada, and here in BC, they will also be able to serve as internal auditors for the Certificate of Recognition (COR) program. For their part, employers will have access to a pool of qualified, experienced, and more economical safety professionals, something of particular benefit to those who either do not need or cannot afford higher-level credential holders such as Canadian Registered Safety Professionals. All candidates for an NCSO must complete a suite of mandatory courses as well as jurisdiction-specific training designed to ensure sufficient knowledge of provincial health and safety rules, regulations, and legislation; and pass both a provincial and national exam. In BC, there will be 10 mandatory courses (eight to be offered by BCCSA and two by third-party providers), and applicants will also need to complete two of eight electives. For more information about the NCSO, including an FAQ that addresses training requirements and other considerations, and/or to get on the email registration list, click on the NCSO logo in the home page banner of BCCSA’s website. ■
movement towards what will make your really successful.
START 2017 HEADED TO VICTORY
Continued from page 13
hiring the wrong person or saying yes to demanding customers. Busy keeps you stressed-out and takes you away from doing what you want or gives you the highest reward for the effort. The key to making more money is getting more organized and systemized. Getting everyone to do things the standardized company way. Holding meetings to track production performance, train, and organize your crews to be more efficient. And allowing you to plan out your future and be more strategic. When you’re too busy and don’t have enough help to run your company, you react all day and put out fires. This causes you to stay busier and not allow you to make any more money, find higher margin projects, or fix the problems that cost you the big bucks.
List out the big things you want to make happen over the next five years, and get focused on big things. For example, if your big thing is to grow, will ordering materials or scheduling crews help you grow? If your big thing is to develop 10 new loyal customers, will putting another bid together help you find loyal customers? If your big thing is to find a strong project manager to run your projects, will visiting jobsites to check in with your foreman help you find a project manager? What big thing will make your company become great? What do you need to focus on to make it happen? What do you need to do with your time to achieve your big thing? ■
IT’S THE LAW Continued from page 21
Perhaps it is time to take a day or two to stop and plan out how to make more money in the near future.
create a temporary advantage, it might actually prevent you from winning the bid in the long run. ■
Most construction business owners and managers have a long list of things they’re working on all at the same time. By ‘multi-tasking’ you think you’re accomplishing a lot. But are you really moving towards your big goal? Staying busy keeps you busy doing the same things over and over with little
This article was written by Andrew D. Delmonico,
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a lawyer, and John Wiebe, 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 604864-8877.
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22 » The Trowel
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