The Voice of the West Coast Wall and Ceiling Industry • www.thetrowel.ca • October / November 2017
Retention Revolution Vertical Innovation
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The Voice of the West Coast Wall and Ceiling Industry • www.thetrowel.ca • October / November 2017
Retention Revolution Vertical Innovation
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EIFS Excellence for People on the Move
8 The Trowel team Jessica Kirby, Publisher / Editor 250.816.3671 • jkirby@pointonemedia.com Christina Tranberg, Advertising Sales 877.755.2762 ext 1408 • ctranberg@pointonemedia.com Lara Perraton, Creatives 877.755.2762 • lperraton@pointonemedia.com
contributing writers Mark Breslin Jeremia S. Chow Ron Coleman Andrew Delmonico Drew Smith
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cover photo Courtesy of NORR Architects Engineers Planners
Published bi-monthly by 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 ©2017 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 Simcoe, ON. 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
CONTENTS • October / November 2017 8 Retention Revolution: Keep Employees No Matter the Economics
You’ve put in the effort to find and train a strong workforce—here’s what you need to know to keep them.
12 Vertical Innovation
Resilience, functionality, and aesthetics come togther to bring walls to new heights.
14 EIFS Excellence for People on the Move
The Seton Marriott hosts weary travellers in comfort, thanks in part to an award-winning EIFS.
Departments & Columns 04 editorial
19 workplace safety
05 drew’s rant
20 it’s the law
16 contractors 101
21 industry news
18 green building
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.
Next issue: Construction Outlook • Taxes and Books • Material Innovations
editor’s COMMENT
Invest in Apprentices
The BC Construction Association (BCCA) regularly records statistics on a number of topics relevant to the general construction industry, and one of its most recent findings is worrisome. According to a report released early this October, the BCCA is reporting “a decrease in the proportion of BC nt style: Silomhigh school graduates entering the construction trades, in key figures from the province’s industrial, commercial, and institutional construction sector.” The association began about four years ago tracking the number of high school graduates entering construction trades training programs within one year of graduation. BCCA says when it first started tracking this trend in 2013, approximately 1/93 students went from grade 12 into trades training. “By 2016 that number improved by 35% to 1/69,” said a news release from BCCA, “but this year there has been a slight reversal to 1/70.” “In order to fill the predicted shortage of 14,200 construction tradespeople, 1 in 12 high school graduates need to enter the
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By / Jessica Kirby, Editor trades over the next few years,” comments Chris Atchison, BCCA president. “Although the predicted shortage of construction workers has decreased from 30,000, there’s still a significant gap and the demand for skilled workers remains high.” The BCCA says construction projects currently underway are valued at approximately $75.1 billion, and another $325 billion is estimated on the books for future. Despite the slight dip in enrollment from high school grads, the workforce in BC has indeed grown in 2017 with a 12 per cent hike, along with six per cent more companies from the previous year. These companies are responsible for $13.2 billion in construction wages, says the BCCA, leaving construction in the number one spot as BC’s largest employer in the goods sector, contributing 8.6 per cent of the GDP. “BC is enjoying a strong economy and as a result has seen a steady drop in the youth unemployment rate overall,” says Atchison. “Construction has to compete harder to attract young people, often against a cultural bias that prevails despite the fact that construction trades offer one of the highest average wages, a rewarding career path, and the chance to graduate with little or no student debt.” The main reason for the predicted skilled worker shortage is retirements, with two-thirds of the workforce over the age of 45.
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Now, more than ever, the onus is on contractors to invest in their apprentices and offer training through the BCWCA training centre so the future workforce is strong and skilled. There will be few opportunities for experienced mentors to pass on their knowledge once the retirement boom hits over the next decade. Now is the time to show workers the importance of training and to ensure a brighter future in the wall and ceiling and other parts of the construction industry. ■
drew’s RANT VICTORIA, VANCOUVER ISLAND What a great experience! The BCWCA, along with the generous support of suppliers and contractors in the Vancouver Island/Victoria region, was successful in filling a Wall and Ceiling Installers course, currently underway from September to November 2017 in our work and learn part-time studies program. We have a full class of 18 apprentices attending shop and classroom Specification and Standards Technical Training. In my short time on Vancouver Island I have noticed there is a construction boom much the same as we are experiencing in the Lower Mainland areas. I am not aware of the Mid or Upper Island scales of work, but from what I have witnessed in the Lower Island areas it looks very promising. The future is looking very positive for our industry with many large scale projects currently underway. We have been advised that the demand for training is high on the Island and that training is accepted with great interest from the local wall and ceiling contractors. They are investing in their young work force, sending them to training classes for Specification and Standards Training as recommended by the Association of Wall and Ceiling Contractors complemented by the National Occupational Analysis, Red Seal program for our trade. Apprentices on Vancouver Island are demonstrating they are extremely motivated towards the training. Feedback from our current classes here has been all positive. I have indicated to them that their placement in these classes by their respective employers shows the level of commitment that their employers have towards them. I make sure they know they have been handpicked to attend these classes to better themselves in the trade; and, this will result in the employer benefitting with a more knowledgeable workforce. In short, this means a large investment
from the contractors and an investment into the future of our skilled work force. The students convey they are very much appreciative of this opportunity to attend specification and hands on shop classes. As I have been informed, it has been a few years since we last provided training classes off site for our Island apprentices. We trust, through the BCWCA, that this now established trend should continue in the future to enable our young workforce to continue their training towards achieving their Red Seal Certification as a wall and ceiling installers. Wall and ceiling apprentices on Vancouver Island echo the same concerns and issues I hear constantly at the BCWCA’s Lower Mainland training facility. One of many concerns from our youth seems to be the amount of onsite training they can receive and it’s usually an oversight / lack of time issue. Our site schedules do not always allow us to take the time to fully explain to the apprentice “Why” we do things the way we do. This is understandable, yet another great reason why we present these classes, together with your support. Here, we have time to discuss the “Why”. The apprentices love this. We stress the “Genesis” if you will, with respect to training. The importance of being at class, on site, on time, that continued absenteeism is not tolerated, company tool care, and so on. We have an eager work force of young talent on Vancouver Island and I see great
By / Drew Smith, BCWCA Photo courtesy of Sarah Dunlop potential with these young apprentices to excel in our trade as professional, skilled, and knowledgeable wall and ceiling installers. On behalf of the BCWCA and I, we tip our hats to our supporters and say “Well done to all” for the continued contribution and support of our trade and of our youth. Together we can be confident we will move forward to further and better training for our future leaders in the wall and ceiling trade.■ “The BCWCA wants to thank Bailey, CGC, and Grabber for helping out with consumables; Slegg Lumber for helping with set up of the classroom and delivery of supplies; and Gordon’n’Gordon for lending plywood and Dryco Systems for storing the classroom furniture and tools since the last time the program was delivered. Thanks to everyone who helped make this course delivery happen including our instructor Drew Smith who is commuting over to teach the class and will be on double duty when our Lower Mainland A/B class starts at the end of October.”
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Gypsum panels were originally created by USG Corporation, the parent company of CGC Inc., one hundred years ago by putting gypsum plaster between two sheets of paper. This invention provided builders with a faster install process, as the long drying time associated with plaster was eliminated. It also dramatically improved building safety, since the gypsum panel’s water molecules release as steam instead of catching fire when heated. This natural feature makes gypsum wallboard an inherently fire-resistant and heat-insulating product. Sheetrock® Brand has made a tremendous impact on the construction industry and is so popular that its portfolio
CGC Inc., a leading drywall manufacturer in Canada, is proud to announce the 100th anniversary of the Sheetrock® Brand. Since its development, CGC Sheetrock® Brand Gypsum Panels have helped revolutionize how buildings are created by setting new industry standards for safety and efficiency.
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To join the movement in building a better world, visit cgcinc.com © 2017 CGC A USG COMPANY and/or its affiliates. All rights reserved. The trademarks CGC, SHEETROCK, USG CEILINGS, IT’S YOUR WORLD. BUILD IT., the CGC logo, the design elements and colours, and related marks are trademarks of USG Corporation or its affiliates.
of products is among the most well-known building supplies around the world. CGC Sheetrock® Brand Gypsum Panels have enabled the construction environment as we know it today, allowing buildings to be safer and taller. Gypsum panels are found in buildings of all types across North America, including homes, hospitals, schools, malls and offices. Today’s products reflect the newest innovations, such as improved fire resistance, lightweight technology, lower water usage and a reduced carbon footprint. CGC Inc. has manufactured and distributed Sheetrock® Brand drywall in Canada since the early 1930s. Today,
most major building material retailers carry this brand, which has earned a reputation among architects, builders and DIY enthusiasts for exceptional quality and reliable performance. “Our long history of innovation and providing quality building materials for Canadians is supported by a strong commitment to grow our business as the most recognized drywall brand in Canada,” said Don Brandt, Vice-President Sales and General Manager, CGC. To observe the 100th anniversary of CGC Sheetrock® Brand Gypsum Panels, CGC is hosting celebrations across Canada with its employees, dealers, and customers.
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Retention Keep employees, no matter the economics Revolution By / Jessica Kirby
There is a chicken and an egg situation gone en rogue in the construction industry. Quality workmanship and a strong workforce depend on good training and employer investment. Employers don’t invest because they are concerned their money and time will be wasted when trained employees leave for broader horizons. Trainees don’t feel loyal to their employers because their employers won’t invest in them. And on we go. Given the cyclical nature of construction and the extent to which it is at the mercy of global economics, there is no doubt successful construction companies have to develop and sustain a strong workforce to stay competitive. Once employers have bitten the bullet and trained their men and women, the real work begins: keeping them.
8 » The Trowel
For one thing, money isn’t everything. It is awesome, that is for sure, but it isn’t always enough to keep good people. The Society for Human Resources Management reports people in most industries value the same types of benefits – health, retirement security, financial bonuses, vacation and leave pay – but another study suggests trade workers have different priorities. Kimmel & Associates studied the career values of trade workers and discovered their interests and the benefits that matter most to them vary by length of time in the industry. According to author Jasmine Gordon’s recollection of Kimmel & Associates’ research, trade workers in their first decade of employment care most about varied job experience and location flexibility; those
Ninety-three per cent of construction businesses believe their companies could boom over the next year if only they could find and retain the right individuals Founded on Principle • Built with Purpose in their second decade cared about the ability to grow their career and income; and, work-life balance and relocation benefits mattered most to those in their third decade. HomeAdvisor reports 93 per cent of construction businesses believe their companies could boom over the next year if only they could find and retain the right individuals—here are that group’s tips for getting there: 1. Offer work-study options: Programs like the BCWCA’s wall and ceiling training programs give new recruits the allure of a job with the time to get trained simultaneously. 2. Don’t hide from entrepreneurial ambition: Employees who want to work for themselves are self-starters, big thinkers, and go-getters—why squash their dreams? Find ways to empower these ambitious folks, keep them closer, and feed their leadership fire with roles that allow them to build the company, create opportunity, and deal directly with failure. 3. Provide mentorship: Training doesn’t end with school. New recruits rely on your skilled workforce for guidance and finding their niche in the industry. If there isn’t time on site to answer 300 questions, make casual Friday afternoon drinks or grub a time for young and experienced to get together away from the fast pace, share stories, and swap tips. Isaac Barlow, CEO of busybusy, a human resources research and development company, talks about building a
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www.fbmsales.com wallandceiling.ca » October / November 2017 » 9
Retention Revolution
WHAT YOU NEED TO KNOW © Can Stock Photo / bluebay2014
Find something (like safety) everyone can understand, get behind, and support in terms of making the company a better place to be strong and inclusive company culture and uses construction metaphors to ask employers how they bring workers together.
Retention in a Downturn Communicate, communicate, communicate: That doesn’t mean just talk. Let people know where they stand, explain the real state of the matter, and listen to their concerns. Loyalty goes a long way. Recognize: Boost morale with feedback, in person, by phone, or via text. And make sure others hear so one compliment inspires many. Be accessible: Down times are the worst times to hide in the office. Walk the floor, get out to the job site, have Friday beers with the crew. They need to know you are there and part of the team. See the big picture: If you do have to turn some workers away, do to tactfully, or offer part-time hours first. The economy will always turn around and when it does, employees who were treated well will be the first to return.
“So what is it that your company is building?” he asks. “What is the grand scheme, the great blueprint that you’re building on? When you can clearly articulate that, people will want to be a part of it. We all want to be proud of what we do. We want to be able to go home and brag about it to our families. When a company’s vision and culture satisfy that need, it’s a very powerful thing. When you have that vision, and have put into place the elements of a positive culture that promotes mutual respect, team values, high performance, and loyalty up and down, it will draw in quality people. It will help you put together a high-calibre team that shares your vision and will work hard to advance the business.” Sometimes losing people is just the nature of the beast— contract and short-term work makes it difficult for workers to commit to one company, or the boom and bust of specific sectors makes it difficult for companies to be broad enough to appeal to workers still finding their niches. © Can Stock Photo / pressmaster
Source: Construction Business Owner, 2010
Workforce Turnover For workers earning less than $50,000 annually, the average cost of replacement is 20 percent of their annual salary. For employees earning $30,000 or less, the typical cost of turnover is 16 percent of their annual salary.
Making sure yours is a business people want to come to means building a collaborative culture where managers, supervisors, apprentices, and office staff have an open rapport and a kind nature, rather than a commanding presence.
Jobs that are very complex and that require higher levels of education and specialized training like electricians and engineers tend to have even higher turnover costs.
Find something (like safety) everyone can understand, get behind, and support in terms of making the company a better place to be—this creates a family-like environment and families are harder to leave than random companies.
Source: Centre for American Progress, 2012
10 » The Trowel
Consider labour sharing. It sounds radical, but there are companies who share labour with competitors in other sectors
to keep workers in slow times and to allow apprentices and new recruits the flexibility to try new industries without leaving the nest, so to speak. So, if Joe’s Commercial Drywall has a great employee with interest in steel framing, he might partner with George’s Framing to share labour power in slower times or on a contract basis because at least Joe stays connected to his labour force while they find their passion.
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Let employees know you care about more than their technical skills. The Human Resources department in Construction World published an article on employee retention that suggests benefits that support and enhance employees’ health and wellness and education. Gym memberships, incentives for physical fitness, or a company sports team bring people together and show employees you care about their health. And don’t forget education: lunch and learns, workshops, skill development, and online training in any number of areas is widely available and demonstrates a commitment to the team. A labourer who can’t read blueprints will get more from a blueprint course than he or she will from being banished from the estimator’s office. Investing in employees is still a risk, and they still may leave. Employing these strategies will at least get you a good reputation so if you do lose a few, there will always be more int he hopper. And let’s be honest, someone has got to catch that chicken if you are going to escape the cycle. ■
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V E R T I C A L
INNOVATION • Photos courtesy of Armstrong and CGC, Inc.
Creativity and resilience go hand in hand with innovative wall panels that revolutionize the building landscape. Building science is bringing fire rating, abuse resistance, and acoustic control together in a number of ways, broadening the selection of wall panel choices in commercial and institutional applications.
Project: Boys & Girls Club of Lancaster Location: Lancaster, PA Architect: CRSS, Houston, TX Product: Tectum® Direct-Attach Wall Panels Tectum Panel Art Shapes and SoundSoak® Baffles The gymnasium at the Boys & Girls Club of Lancaster, PA is in use every day, not only for sports activities, but for a variety of other functions as well. Its acoustic environment, however, was not always ideal. Acoustical testing showed reverberation time in the gym was 5.05 seconds, far above the 2.00 seconds or less recommended for this type of space. As Karen Schloer, the Club’s chief executive officer, said, “The noise level was putting a real strain on the staff because they had to shout so often when trying to communicate with the kids.” To solve the problem, Armstrong Ceiling and Wall Solutions installed more than 3,500 square feet of Tectum® DirectAttach wall panels on the gym’s masonry walls. The panels were chosen because of their ability to absorb both sound and the impact of basketballs, volleyballs, and other objects that hit the walls. Aesthetically, the two-inch-thick, 2- x 4-foot panels are installed in ribbons of white and a custom blue that match the Club’s colours. They start nearly 10 feet off the floor and continue up the wall another 18 feet. In addition, a recreation of the Boys & Girls Club logo is installed at each end of the gym. The 15-feet-wide and 13-feet-high visual of two
12 » The Trowel
interlocking hands was created using 8-inch triangular Tectum Panel Art shapes. The white triangles are one inch thick, while the blue triangles are two inches thick so that they stand out from the wall. Two rows of 12 SoundSoak® Baffles were installed in the center of the ceiling for added noise absorption. Acoustically, the 2-inch Direct-Attach Tectum wall panels have a Noise Reduction Coefficient (NRC) of 0.70. Acoustical testing conducted after the installation of the combination acoustical treatment showed that reverberation time dropped to 1.85 seconds, a 63% reduction. According to chief operations officer, Scott McLellan, the difference is “like night and day. The biggest takeaway is how much easier it is now for the staff to gain control of the space because the kids can hear directions much more clearly.” Looking back at the difference in the gym’s acoustic comfort, McLellan adds, “The staff simply didn’t realize how bad it was because they didn’t realize how good it could be.”
“Safety measures include a series of repetitive, highly compartmentalized small rooms to help contain flame spread ...” complete encapsulation, with three- to four-layers of the fire-rated panels, dependent on location. Additional safety measures of the structure include a series of repetitive, highly compartmentalized small rooms to help contain flame spread in the event of a fire, as well as a backup water and emergency power supply so the sprinkler system will function even if the building loses its standard power and electrical supply. Brock Commons also contains a building monitoring system and an upgraded concrete and steel core that’s protected by 25,000 sq. ft. of Sheetrock® Glass-Mat Liner Panels. It’s also the first building in British Columbia to be specified to the new 2015 National Building Code of Canada for seismic design. Aside from its primary function as a student residence, the building will also serve as an academic research site for students and researchers, who study and monitor its operations. Brock Commons serves as an exceptional place for students to live, work and play, while simultaneously bettering the environment as a result of its sustainable characteristics. ■
Innovative Drywall Solutions
Project: Brock Commons, UBC Location, Vancouver, BC Architect: Acton Ostry Architects Product: USG Sheetrock® UltraLight Panels Firecode® X and USG Sheetrock® Glas-Mat Liner Panels CGC Inc. helped the University of BC tackle the world’s tallest mass timber building at the Point Grey campus with 1.1 million square feet of Sheetrock UltraLight Panels Firecode® X. Brock Commons, a student residence, is 174 feet tall. Designing a timber building was purposeful, as the material is sustainable and versatile; it stores – rather than emits – carbon dioxide for the life of the structure and beyond when wood fiber is recycled or reclaimed. The building was designed to achieve a minimum LEED™ Gold certification. By using the CGC panels, Brock Commons met the oneand two-hour fire ratings required for this type of wood structure. The cross-laminated timber (CLT) and glulam components used in the project have been enhanced through
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wallandceiling.ca » October / November 2017 » 13
EIFS Excellence for People on the Move By / EIFS Council of Canada Photos courtesy of NORR Architects Engineers Planners
SUMMARY
The Seton Marriott Hotel • Calgary, Alberta Architect: NORR Architects Engineers Planners EIFS System Manufacturer: DuRock Alfacing International EIFS Contractor: Holt Construction Services Ltd.
The Seton Marriott building is one of three runners up in the
EIFS Council of Canada’s 2017 EIFS Award Competition. The building reflects a requirement by the client to create two distinct hotel brands in separate buildings while retaining the advantage of shared amenities for parking, conference rooms, food service, and guest amenities. NORR Architects, Engineers, Planners devised a solution through the use of a podium, which comprises the lower portion of the building, up to and including the second floor, and contains the shared amenities. Above the podium, each hotel brand is housed in a separate tower—Residence Inn for extended-stay guests with interior living amenities similar to apartments, and Courtyard Inn for short-stay, hotel-feature guests.
a two-storey common amenity area that features a spa, pool, and fitness area. Housekeeping and commercial kitchen areas are also centralized to provide added operational efficiency in serving the needs of both short- and extended-stay guests. In addition to building envelope performance improvements, mechanical system designs improve the buildings’ sustainability. HRVs and staged mechanical systems were incorporated in the building to decrease energy use and improve sustainability. Occupancy control systems were provided on a unit by unit heating / cooling system to provide the most effective and efficient use of mechanical systems.
The hotel provides 121 short-stay rooms and 103 extendedstay rooms. The short-stay rooms are grouped together over seven storeys, with dedicated amenities including a small meeting room, lounge, and business centre. The extended-stay uses are located in a six-storey building, served by meeting rooms, a 127-person conference area, and a breakfast room. The short- and long-stay components are linked together by
The project was undertaken using an EIFS for the benefit of the continuity of the thermal envelope from below grade, through the podium with cavity wall insulation at the masonry, to the EIFS above at the same plane, to optimize the overall U-value of the building envelope. It was also undertaken to maintain the insulation at the exterior of the frame wall assemblies to ensure continuity of the vapour barrier assembly at the exterior of the wall and eliminate potential failures that would occur in penetrating an internal vapour barrier. ■ wallandceiling.ca » October / November 2017 » 15
contractors 101 BUSINESS DIAGNOSTICS When a mechanical system fails and the contractor is asked to rectify the issue, he will likely have the best outcome for both he and the customer when he follows the following steps: i. Diagnose the problem ii. Recommend a solution iii. Get the customers approval iv. Quickly restores the system to working order The customer gets the work done on time, on budget, and to the expected standard and retains his confidence in his contractor. The contractor completes a job as above, makes money and enhances his relationship with the client. I don’t know anything about diagnosing problems in mechanical systems. I do know that technicians are trained in the process and have specialty tools to assist them and, of course, there are detailed drawings and diagrams of the equipment available. I am not saying it is simple or that mistakes don’t occur. What I am saying is that there is a process and that process has a lot of support. However, when I talk to business owners about the areas of their business that fail, we move into a whole new world. There seems to be no drawings or diagrams, no specialty tools, and no one trained in how to diagnose the problem, never mind fix it. To be successful in business we need to start by improving our business diagnostic ability. Where is the pain and what specifically is causing it? I was recently asked by a contractor to help him improve profitability. He is fairly typical of this type of contractor. He does new construction, retrofit, and service and maintenance work. As he didn’t have a specific issue in mind other than “we need to improve profitability” I wasn’t sure where to start. This the equivalent of the customer who phones and says, “no heat”. Often a technician who is experienced in dealing with diagnostic issues will know what the most likely cause of the failure is and will start checking out that part of the equipment first. Most of the time he is right and can quickly recommend a solution. In the case of my contractor I made a judgement call. I didn’t want to spend hours analyzing his financial information because unlike the diagram for the mechanical equipment, the financials would not be a complete map of the business. Rarely does a contractors have a complete set of diagrams to show how their business works. They have bits of the system in a variety of places. The accounting system is comprehensive but rarely accurate or detailed enough to assist in a correct diagnosis. The accounting systems are usually designed for 16 » The Trowel
By / Ron Coleman
compliance. That means when the Canada Revenue Agency wants information from the company it can be provided. Likewise if your bank or bonding company want information it will be available from your accounting records. But the management information is usually lacking. It’s like giving a customer a brochure about a specific piece of equipment. It highlights certain points but lacks detail. Like the experienced diagnostic technician, I decided to focus on one key area. From many years of working with contractors, I had a fairly good idea of where I would find the problem and the solution. I told the client I believed I could help him get an additional $10 per hour for every hour he bills out on an hourly rate. I asked him to calculate how many hours he bills out in a month and multiply that by $10. I said that will be our solution. It will have a huge impact on his profitability. And, if I can only get him an additional $7 per hour, well, it will still be wow. Getting the right outcome is what is important. Similarly, the owner of the mechanical system has no interest in your diagnostic process. He wants an outcome—how much it will cost and when will it be operational? In business, profit is not an activity; it is an outcome, a result of a variety of activities. This is the initial approach I took. I needed this information in order to diagnose where there is potential for improvement. • What hourly rates do you use? • (Please explain if there is more than one rate) • Include minimum rate, travel time allowance, truck charge, and iscounts to special customers or situations. • Include sample invoices for the different types of work • Do you track hours paid to hours billed? • Do you know how many unbilled hours you pay for with each payroll? • How do you track hours for payroll and for billing? • How do you monitor and record warranty work?
contractors 101 • Do you do any menu pricing or flat rate pricing for service or planned maintenance work? The reasons this diagnostic information is critical is you can only manage what you measure and if you don’t know how you are doing now, how will you know if it gets better? Making small improvements to all the variables will have a huge impact on profits. My diagnostic process included: • How much the company can likely increase its charge out rate. • Where and when it can charge more per hour. • How to minimize non-billable hours. • What other elements can be added to an invoice to make more profit? • How increasing the amount of menu pricing or flat rate pricing can improve the hourly recovery rate. • I recall Gearld Inch telling me that when he reviewed service invoices that they were often understated by 25%. Using technology based tracking systems that are linked to payroll can easily increase billable time by 15 minutes per day per tech.
I started off telling my client he could get an additional $10 per hour and now I am telling him it is closer to an additional $30 per hour. In this article I have not addressed other opportunities such as menu pricing, flat rate pricing, higher pricing for specialty work, higher diagnostic rates, building in warranty labour provision, and several other elements that would allow you to make more money without upsetting your clients. So, multiply the service hours you bill in a month by $31.68 and see how quickly you will make some serious money and become one of the top 10% of contractors in Canada. ■ 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. His book Building Your Legacy has more than 40 great ideas for helping you work smarter, not harder, and create a legacy of which you can be very proud. Ron is a professional accountant, a certified management consultant, and a professional member of the Canadian Association of Professional Speakers. 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.
Consider this: an employee starts five minutes late, finishes five minute early, and takes an extra five minutes for lunch and coffee breaks. That’s a total of 15 billable minutes lost per day per person. Calculate $25 in revenue per day. Spread over 7.5 hours per day, this equates to an additional recovery of $3.34 per hour. Do you charge for consumables and supplies? If you charged only $10 on a two-hour service call (or increased your current charge by this) you would recover an additional $5 per hour If you could improve your scheduling by reducing travel time by 15 minutes per day that would be another $3.34 per hour. If you ensure that you charge all the items you should on an invoice you could easily pick up $10 per hour. This would include vacuum pumps and other specialty tools and equipment that are not standard on all jobs. Let’s sum up: Managing payroll hours Recovery for consumables Reduced travel time Correctly invoicing
$3.34 $5.00 $3.34 $10.00
That’s a total of an additional $21.68 per hour and you haven’t even increased your charge out rate. Most contractors could increase their charge out rate by $10 per hour and lose very little business. They would, in fact, make more money doing less work. wallandceiling.ca » October / November 2017 » 17
green BUILDING THE GREEN ROAD TO GHG REDUCTION The Canada Green Building Council (CaGBC) has completed a report detailing a roadmap for reducing greenhouse gas emissions from large buildings like office towers, recreation centres, hospitals, arenas, and schools across the country. The report, titled “A Roadmap for Retrofits in Canada” demonstrates the critical role existing buildings play in realizing Canada’s low carbon future. The report provides recommendations to retrofit large buildings that will contribute to achieving a reduction in GHG emissions of at least 30 per cent (or 12.5 million tonnes1) by 2030, with the potential to reach 51 per cent or 21.2 million tonnes. The Roadmap provides government and industry with a targeted plan to yield the greatest carbon savings from buildings and grow Canada’s clean economy. Developed by WSP for CaGBC, this report advances recommendations made in CaGBC’s 2016 “Building Solutions to Climate Change” research by analyzing how the type, size, and age of large buildings, along with energy sources and the carbon intensity of regional electrical grids in Canada, can affect energy efficiency and carbon emissions. The report identifies the buildings with the largest carbon reduction potential and recommends provincially-specific retrofit pathways that include a combination of recommissioning, deep retrofits,
renewable energy, and fuel switching actions. Among its key findings, the Roadmap concludes achieving a 30 per cent (and potentially 51 per cent) building emissions reduction by 2030 is achievable by focusing on a targeted number of buildings that have the greatest potential to reduce carbon. Buildings including office buildings, shopping malls, universities, and arenas constructed between 1960 and 1979 across all provinces represent the age class with the largest opportunity for total carbon emissions reductions. Alberta and Ontario currently emit the most carbon and therefore have the greatest potential for reducing emissions. This is due to the carbon intensity of Alberta’s electricity grid and the number of large buildings in Ontario. That said, all provinces will need to prioritize recommissioning for large buildings (between 25,000 and 200,000 sq.ft) and deep retrofits for older buildings (over 35 years old) to meet the target. These two actions will reduce emissions by a collective total of 4.1 MT CO2e, providing 62 per cent of the reduction activity needed. Fuel switching must be completed in 20 per cent of buildings over 35 years old across Canada. Currently, fuel switching is particularly attractive in provinces with clean electricity grids such as British Columbia, Manitoba, Quebec,
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New Brunswick, and Newfoundland. In these regions, significant effort should be put into increasing the adoption of highly efficient heat pump technology. This will reduce emissions by 1.6 MT CO2e, or 25 per cent of the reduction activity needed. In provinces with carbon intense electricity grids, specifically Alberta, Saskatchewan, New Brunswick, and Nova Scotia, 30 per cent of buildings will need to use renewable energy in order to meet the target. This will reduce emissions by 0.9 MT CO2e, representing 13 per cent of the reduction activity needed. “This report makes it very clear that targeted strategic investments in existing buildings represent a massive opportunity for significant carbon reductions across the country,” said Thomas Mueller, president and CEO of CaGBC. “We are showing how each region can contribute to meeting Canada’s climate change goals through a targeted approach to building retrofit and clean energy. Governments at all levels are encouraged to develop progressive policies and programs to guide investment and support for establishing a robust retrofit economy in Canada.” The report provides the following policy recommendations for the federal government: include a GHG metric in Canada’s future retrofit building code; develop regional retrofit roadmaps; prioritize investments in scalable retrofit projects; and, supporting mandatory energy benchmarking. For more information, please visit CaGBC online at www.cagbc.org. ■
workplace SAFETY SAFETY AS A MIRROR OF ENGAGEMENT AND FOUNDATION FOR SUCCESS What is safety? A set of rules and practices? An organizational value? An individual responsibility? A set of metrics that indicate performance? Risk management and the costs and benefits? Probably all of those, but something a little less visible, I think. Safety is a reflection of the level of engagement your employees from top to bottom bring to the organization. It is, without question, the most common rallying cry that bonds and unites people in the construction workplace. But it is also the foundation upon which engagement is built. And the effort has some unusual roots based in the following case study. In 1987 Alcoa Aluminum was in trouble. It was an organization that was underperforming at every level internally and suffering in the marketplace. Productivity was poor. Quality was poor. Clients were not happy. And the answers that had been enacted to date were ineffective. Along came a leader with a new set of ideas based on the idea that if you could find a rallying point for everyone, that intersection of belief and buy-in could serve as a cornerstone for progress in all other areas. The CEO Paul O’Neil sifted through recommendations of the many senior level executives and came away headed in a totally different direction. Instead of focusing on manufacturing processes, quality initiatives, or productivity enhancement, he decided the starting place would be safety. When he announced this, the market punished him and major brokerages all went to a Sell recommendation. He had a vision of unifying everyone. Something that everyone could believe in. Something everyone could get behind. Something that benefited everyone and the company. Many were left scratching their heads wondering if this leader was crazy—a broken company is starting with safety to rebuild itself? But he was on to something powerful. One year after he made that speech to investors, the company hit record profits. By the time he retired 13 years later the company had increased profits 500 per cent. (See his YouTube presentation on Safety as the Keystone Habit.) It turns out, having that common vision and objective was exactly what the company needed. It was the thing that bonded labour and management. It was a clear indicator by the company that they cared about their employees’ health and welfare. It was a brilliant, simple, and effective foundation upon which to build. And build they did. Alcoa, in a relatively short time, built a culture of safety, but also a culture of unity and belief. Most importantly though, it build a culture of engagement. Engagement in the workplace is what leads to buy-in and commitment. It is the door you have to open for your employees to voluntarily walk through.
By / Mark Breslin, Breslin Strategies, Inc.
It is the opportunity to participate and, more importantly, contribute. It is this that we are achieving at a remarkable pace in our industry today. Many safety award winners are firms that maintain flawless records. Many of my clients will work millions of man-hours without lost time incidents. These at face value are strong indicators of vigorous and effective safety programs and training. But what they really reflect, most of all, is the level of committed engagement evident in the workplace. This lesson is vitally important as we continue our efforts to attract young people to our industry. Generation X and especially the Millennials are seeking engagement as a primary element of their workplace experience. Engagement, even more than money, is the currency of retention. It is the effort made by companies today to show they care and that they want and need input and participation by everyone in the workplace. I think there are lessons to be learned and applied here. There are many other areas of jobsite focus in which we can use our “safety engagement” expertise for great dividends. But those are secondary to asking the questions over and over again: “how do we engage our people? How do we obtain their buy-in and commitment? How do we tap their talent and discretionary effort? How do we build off of safety, precisely how Alcoa did, to reap long-term rewards? Take a big picture look at safety, engagement, and culture. Think about how Alcoa bridged the safety focus to company performance. Ask yourself what are we doing that works amazing well and how can we leverage it in other areas of our business? Engagement, once gained, is a powerful tool. Let’s be visionary about how we build the industry of the future based on the hard lessons learned on our way to today’s safety excellence. ■
wallandceiling.ca » October / November 2017 » 19
it’s the LAW HOW NOT TO USE A CLAIM OF BUILDERS’ LIEN A builders’ lien can be a powerful tool for contractors to protect themselves from being unpaid for their work. However, a lien is used improperly if it attempts to extract additional payments that are not actually owed to the contractor. In the case of Atlas Painting & Restorations Ltd. v. 501 Robson Residential Partnership, a painting contractor narrowly avoided being penalized by the court for filing what turned out to be a significantly inflated lien claim.
The Facts In or around October 2013, 501 Robson Residential Partnership (the “Owner”) entered into a contract (the “Contract”) with Atlas Painting & Restorations Ltd. (the “Contractor”) to paint portions of a residential-commercial tower in downtown Vancouver. The fixed contract price agreed to by the Owner and the Contractor was $1,522,000.00. In November 2015, differences arose between the parties, and the Owner put the Contractor on Default under the Contract. By late December 2015, the Owner had terminated the Contract. On the same day, the Contractor filed a lien claim for approximately $1,215,000.00, despite the fact that much of the fixed contract price had already been paid by the Owner. After the lien was filed, the parties began to negotiate the proper amount of cash security to be posted by the Owner in order to secure removal of the lien from title. The Contractor initially offered to remove its lien if the Owner posted cash security of $800,000, despite acknowledging its “direct losses” were only $354,000.00 at that time. In February 2016, the parties agreed to have the lien discharged by the Owner paying security of $638,000.00. By, October 2016, the Contractor had agreed that, at most, the amount of its lien was only $452,000.00. However, the Owner still considered this amount to be excessive, and a court hearing took place to determine the appropriate amount of cash security for the Contractor’s lien claim. At this hearing, the court considered the following issues: 1. Whether the Contractor’s claim of lien was so inflated as to amount to an abuse of the process, such that the Contractor should be penalized under the Builders Lien Act. 2. Whether the amount of security paid by the Owner to have the lien discharged should be further reduced.
By / Andrew Delmonico and Jeremia S. Chow
The Decision The court expressed concern with the Contractor’s lien claim. Specifically, the court looked at the fact that the Contractor had prior experience using builders’ liens, and would likely have known that an inflated lien claim can be used improperly to improve a contractor’s bargaining position. The Court criticized the Contractor for being “irresponsible” in overstating its initial lien claim by so much, reasoning that it “should have known better than to file the lien for $1,215,000.00”. Ultimately, the court found the Contractor had “rescued itself” from a finding of abuse of process only because it had voluntarily offered to reduce the amount of its lien claim prior to the court hearing. Even though the Contractor narrowly avoided being fined for abusing the lien process in this case, the court did significantly reduce the amount of security for its lien claim to only $100,000.00.
Lessons Learned 1. Registering a lien claim can be a very important step in protecting your right to be paid. However, care should be taken to ensure that the lien claim only reflects the legitimate value for the material and labour you have supplied to the construction project. Deliberately inflating the amount of your lien claim as a tactic to improve your bargaining position may result in significant fines later on. 2. If you have registered a claim of lien that turns out to be inflated, be prepared to reasonably reduce the amount of your claim to only the amount owing. Failing to do so could later be found to be an abuse of the lien process. ■ This article was written by Andrew D. Delmonico, and Jeremia S. Chow, a summer articled student, who practise 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 (Abbotsford) or 604.684.8668 (Vancouver).
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industry NEWS CERTAINTEED RECOGNIZES THOSE ON THE FRONT LINE OF FORT MCMURRAY REBUILD With an estimated 700+ home builds this year in Fort McMurray, those working in the construction industry are working at full capacity to get their family, friends, and neighbours back into their repaired and rebuilt homes as quickly as possible. To recognize the determination and dedication of those on the front lines of the rebuild, CertainTeed is searching for Fort McMurray’s Rebuild Heroes. These Rebuild Heroes include contractors, foreman, drywallers, plumbers, and others that are working countless hours to build homes and/or complete repairs. CertainTeed is calling for residents to nominate the Rebuild Heroes that are getting people back in their homes. To kick off the contest and help drive nominations, a CertainTeed Rebuild Hero truck will be visiting local partners and constructions sites October 4 & 5, delivering homemade snacks and hot drinks to more than 100 people at 10 construction sites around the city. “CertainTeed has had a strong building material manufacturing presence to Western Canada for many decades and we have remained committed to maintaining our presence despite economic pressures and challenges,” said Wayne Edgecombe, vice-president sales, CertainTeed Gypsum Canada. “We recognize the resilience and fortitude of Fort McMurray, after the terrible impact of the wildfires of May 2016, and that the rebuild is a massive effort. We want to take this opportunity to recognize and support the incredible community spirit to come back stronger than ever and recognize all the Rebuild Heroes that are bringing Fort McMurray Strong to life.” Earlier this year CertainTeed increased its drywall production capacity at several facilities in Western Canada, creating over 50 new jobs, to ensure local supply for the building material needs of the Western Canadian construction industry and to ensure that there would be an adequate supply of drywall for Fort McMurray construction. While drywall was the key product focus, the company is also prepared to support with insulation and ceilings should the need arise. Fort McMurray residents are encouraged to visit www. CertainTeed.com/RebuildHero from October 4 through November 3 to nominate their Rebuild Heroes. While the contest intends to honour all those who are working so hard to rebuild the city, five heroes randomly selected from all the submissions will each receive a $2,000 gift card. CertainTeed will also make a $2,000 contribution in each winner’s name to a local Fort McMurray charity of his/her choice.
BC INVESTS IN TRADES TRAINING OPPORTUNITIES THROUGH HIGH SCHOOL APPRENTICESHIP PROGRAMS The Industry Training Authority (ITA) is investing over $1.2M across the province to fund the ITA Youth Work in Trades Programs. This year, 46 school districts across BC have been approved to receive $20,000 to $40,000 each in funding to support youth apprentices in their communities. Youth Work in Trades is a dual credit program that provides an opportunity for BC students in grades 10, 11, and 12 to begin their apprenticeship journey. The funds support school districts in connecting students with local employers to attain practical experience. Students will earn a paycheque while gaining credit toward their high school diploma and the work-based training portion of their trades apprenticeship. An apprenticeship is a combination of on-the-job and classroom training and typically takes four years to complete. “Introducing trades programs to young people while they’re still in high school gives them a flavor of the exciting possibilities that lie ahead,” says Melanie Mark, Minister of Advanced Education, Skills and Training. “Trades students are the ones who will be building our homes, schools, roads and hospitals. To ensure labour market demands are met, it is crucial that we equip young people with the right skills for the job opportunities of today and tomorrow.” “Young people play a pivotal role in sustaining BC’s future economic boom,” says Gary Herman, CEO, ITA. “Access and exposure to trades programs at an early age will help prepare young people for jobs and an apprenticeship is one of the best ways for our young workforce to gain skills for in-demand jobs.” ITA partners with the Ministry of Education to deliver ITA Youth Trades Programs to provide BC students with the opportunity to Discover, Explore, Train and Work in the trades during their school years. The programs provide students with a cohesive and streamlined path from early learning straight through to apprenticeship, and into the workforce. The Industry Training Authority (ITA) leads and coordinates British Columbia’s skilled trades system. ITA works with employers, employees, industry, labour, training providers and government to fund training, issue credentials, support apprenticeships, set program standards and increase opportunities in the trades. To learn more, please visit www. itabc.ca. ■
CertainTeed’s Rebuild Hero winners will be announced on November 9. For further contest information please visit www.CertainTeed.com/RebuildHero. ■ wallandceiling.ca » October / November 2017 » 21
advertiser INDEX INDUSTRY NEWS
continued from page 21
BC CONSTRUCTION INDUSTRY HIRING WORKERS BACK FROM ALBERTA Strong activity in British Columbia’s construction industry is drawing skilled workers back to the province from Alberta and more young people are entering the trades, according to the 2016 Construction Industry Survey released today by the BC Construction Association, in partnership with Progressive Contractors Association and Construction Labour Relations. The survey found that 45 per cent of employers hired a worker last year that came directly from working in Alberta’s oil and gas sector. The number of youth going directly into the construction trades from high school is up 15 per cent since 2014. “The record number of construction projects now underway and the outlook for sustainable growth is drawing British Columbians back home,” said BCCA President Manley McLachlan. “The message is starting to sink in with youth and their parents that a career in the trades is a great choice. This is helping BC employers succeed in a very mobile and highly competitive labour market, but there is much more work to do to fill the skills gap.” While key economic data in the 2016 survey confirm a healthy and expanding sector, storm clouds continue to loom on the horizon for BC’s $8.1 billion construction sector. Twothirds of workers in skilled trades are now over the age of 45 and in their wake there are not enough new people entering the field. These demographic trends and a projected increase in construction activity are forecast to create a 15,000 worker shortfall.
“To avoid labour shortages that could stunt economic growth industry and governments need to continue to work together to skill-up BC’s workforce,” said McLachlan. The 2016 survey also provides the most complete picture to date of trade wages and salaries in BC’s construction sector. Some key findings include:
• 94% of BC construction employers say they are planning
to hire in 2016. These will be predominantly full-time, year-round jobs.
• 50% of employer respondents reported offering higher wages than 2015.
• 88% of entry-level workers are happy with their wages. • 44% of apprentices received a raise in 2015. • $56,170 is the average annual salary of a BC construction industry worker.
“Skilled workers are the backbone of the industry, and tight supply is making it a worker’s market. Employers need to focus on retaining the talent they have,” said McLachlan. Read the full 2016 BC Construction Industry Survey at www. bccassn.com. ■
Are you working on an interesting or challenging project? Tell us about it. Contact our editor, Jessica Kirby, at 1.250.816.3671 or email editor@thetrowel.ca.
ADVERTISER INDEX Company Bailey Metals Products CertainTeed Saint-Gobain CGC Inc. Demand Products Flannery, Inc. Foundation Building Materials Grabber Construction Products (Canada) Inc. High Crest Architectural Products Inc. New West Gypsum Recycling Plasterform Steeler Ltd (Delta BC) 22 » The Trowel
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it’s simple.
enough said.