Trowel Winter 2019

The Voice of the West Coast Wall and Ceiling Industry • www.thetrowel.ca • Winter 2019

CONSTRUCTION Font style: Silom

OUTLOOK Font style: Silom

Also in this issue: 2019 at the BCWCA Taxes & Books Peninsula Wall and Ceiling EIFS Design Awards

Publications Mail / Agreement # 40719512

Trowel_Winter19_19Dec2018_201.indd 1

2018-12-20 4:18 PM

Manufacturer of Specialty Aluminum Trims Flannery is the only manufacturer of aluminum trims with a full line of products for application in each of the following wall systems:

stucco • drywall • fiber cement panels millwork panels • composite siding Now offering Trims for LEDs

t: 818.837.7585 • f: 818-837-1155 • e: info@flannerytrim.com • www. flannerytrim.com Trowel_Winter19_19Dec2018_201.indd 2 Flannery_FPFC_TRWin19.indd 1

2018-12-20 4:18 PM 2018-12-18 10:30 AM

14 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 Ron Coleman Andrew Delmonico Deb Draper Drew Smith Matthew T. Potomak Jordan Whitehouse

cover photo

7

16

CONTENTS • WINTER 2019 7 Construction Outlook 2019

Courtesy of Peninsula Drywall

Canadian construction is holding steady for 2019, with ideas about how to address the labour crunch popping up across the country.

Published bi-monthly by

12 2019 at the BCWCA

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 ©2018 by Point One Media Inc. All rights reserved. No part of this publication may be reproduced or duplicated without prior written permission from the publisher.

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

Return undeliverable Canadian addresses to: The Trowel Circulation Department P.O. Box 11, Station A Nanaimo, BC V9R 5K4 e: circulations@pointonemedia.com

Journal of Record for

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.

BCWCA contractors say the coming year will be a lot like the last: busy, prosperous, and riddled with labour challenges.

13 Marriott Courtyard and Conference Centre The EIFS Council of Canada presented its 2017-18 Architectural Design Awards, and this stunning hotel was a natural winner.

14 Taxes & Books

The EIFS Council of Canada presented its 2017-18 Architectural Design Awards, and this stunning hotel was a natural winner

16 Peninsula Wall & Ceiling: Sweeping Excellence

Peninsula Wall & Ceiling took on a innovative and unusual wall and ceiling project at the Audi / Jaguar dealership at Richmond Auto Mall.

Departments & Columns 04 editorial

20 it’s the law

05 drew’s rant

21 contractors’ advice

06 industry news

22 advertiser index

19 strategic planning Next issue: Smart Business • Acoustics • Ceilings

Trowel_Winter19_19Dec2018_201.indd 3

2018-12-20 4:18 PM

editor’s COMMENT BRING IT ON, 2019 Here we sit at the beginning of a fresh new year, and like it or not, it opens up a world of possibility for new beginnings.

January marks the time to get your books in order for tax season, the time to start planning for the busy season, and the time to come renewed after a bit of a holiday. British Columbia is looking at another steady year in the wall and ceiling industry (see page 12) and the rest of Canada is holding on as well (see page 7), but the big question on everyone’s mind is labour.

By / Jessica Kirby, Editor

I’m not going to regurgitate the prowess of national newspapers and well-paid economists who lament the statistics about the impending (and in some places already occurring) labour shortage, but I am going to take a feather from my dad’s cap and point out that the construction industry’s biggest loss over the decade is going to be experience and wisdom, and this loss will in some ways reduce the efficacy of a smooth transition to the new age of labour.

And while we are discussing fresh new faces, it will be helpful for those ready to pass the torch, the men and women who have made construction in Canada strong and immense, to withhold the urge to cluck and shake heads and roll eyes as the new generation arises. These are smart, engaged individuals who bring meaningful value to the word “innovation”. Treat them well and celebrate their enthusiasm for technology (you can cluck later) and don’t be afraid to learn something, too.

Call the “old way” dated all you like, but it didn’t get to be “old” without bringing immense value to the scene—value you can’t teach from a textbook, in an online class, or from cruising Facebook groups. While fresh new faces are eager to tackle the immense labour landscape before them, they will be wise to wonder what or who made it so great to begin with, and take the best of what they learn from the veterans before charging straight ahead, devices blazing.

The best thing that could happen in harnessing both wisdom and innovation as the labour tides turn is that long-standing contractors bring apprentices in for training. Sure, it is technically optional to properly train your staff in a structured training facility, but it is also optional to wash your bedsheets, drive the speed limit, and hold the door for old ladies, but we do these things (at least, I hope you do) because it is the right thing to do. The same goes for training your apprentices.

It prepares them for a solid career in the industry, it is an investment in the long-term health of Canada’s construction industry, and it is the most important thing you can do to support your business.

You work...

to build a home...

and shape your skyline.

We work for you.

877-678-6565 | steeler.com

[Steel Studs] [Wire Products] [Shaft Wall Studs] [Slotted Stud] [Smooth Corners] [Corner Bead] [Screws & Fasteners] [Pony Wall Supports] [Custom Brake Shapes up to 31’] P: 604-940-1332 | F: 604-940-1334 | 8288 River Way Delta, BC V4G 1C4

This is the year. It is time to make a change and move ahead with a solid vision of what you want your business to be about, who you want to surround yourself with, and how you want to extend your commitment to the industry outside your four walls. So, get out there any make it happen, and if you haven’t already, go do something about those bed sheets while you are at it.

The Trowel is conducting its annual construction outlook survey, and the reults will be represented in an article in the spring issue. I know you have something to say, so visit https://www.surveymonkey.com/r/XRPWMDK or text 250816-3671 for a live link. This is a good chance to share your ideas, your challenges, and your opportunities and all answers remain anonymous.

Happy New Year and best wishes for 2019. I wish you love and light and prosperity and happiness the year through.

Drop me a line any time to let me know how it is going and what you are interested in seeing in these pages. This is your magazine—let’s hear what you have to say. ■

4 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 4

2018-12-20 4:18 PM

drew’s RANT TOOLS OF THE TRADE: WHY AND WHEN I have written about this topic before, and I feel we must revisit the subject. Class after class, our apprentices are showing up at your BCWCA training facility with few or no tools. They are not properly outfitted for the myriad tasks that encompass our skill set as wall and ceiling installers.

Impact drivers are good for framing and t-bar, period. They are not making us any money when we start application of GWB. I don’t expect any argument there.

In every class I have had over the years, I have given students a tool list of what I would expect the apprentices to have in their tool box or what have you. This is also followed by directions to present this list to either their principal or the foreperson of the day for review and comment and even for direction and assistance in procuring these tools. Most, if not all, companies are willing to assist the apprentices in getting these tools together. After all, it’s in their best interest that their apprentices have the right tools for the tasks that present themselves on our sites daily.

Once the apprentices have the tools of the trade, then and only then can we instruct them on their proper use. I have discussed with contractors the process of eliminating unnecessary movement and tool use. For example, why are we telling our apprentices on the site to c-clamp every stud before screwing track to stud? Or, why are we telling our apprentices that we need to “speed square” the stud and track? Both of these movements are completely unnecessary, and I explain to our apprentices why. The why is what they are not learning on the site and should be. When we explain why and when to use these tools, the apprentice understands.

To use an analogy, I suggest we consider these young workers a blank computer program. The computer will only be as competent and productive as we teach it. Without the proper input to the program, without the proper tools to develop the program, the program will be of little or no use to the user—in this analogy, the user being the contractor.

I do understand we are all extremely busy in our industry just now, and management may not even be aware that our younger staff may be without the necessary equipment and tools to do the tasks we ask of them efficiently and productively. This is, respectfully, a heads up.

Drywall application requires a corded or cordless screwgun, not an impact driver. Enough said. Line lasers have their place in the industry, but a spirit level should be part of every worker’s tool kit. Batteries not included. Enough said. I have never owned a “speed square,” nor will I ever buy one, heavy gauge framing being the exception. Enough said.

By / Drew Smith Photo by / Sarah Dunlop We need to convey to our on-site senior staff that it is necessary to explain to our young minds, our apprentices, why certain tools should be used, when they are to be used, and when they are not to be used.

If we don’t have an onsite plan for the apprentices’ growth with clear instruction and guidance, then maybe we should just hire a labour supply company. We need to take the time, maybe at the beginning of the day, at break times, or ongoing throughout the day, to discuss with our youth the why and the when. In my experience in training, the youth are much more engaged, interested, and attentive when they know they are learning something and when things are explained properly they comprehend that much faster. It works.

Payback will come when our youth are equipped with the right tools for the trade and the right instruction in using them.

So, I would like to propose that we take a minute longer after reading this latest rant of mine and consider seriously if there is anything that we as the management might consider in assisting our young, eager staff on site.

Payback will come when our youth are equipped with the right tools for the trade and the right instruction in using them. It’s only a matter of time and time is valuable. Let’s use the time we have invested in our staff to make them the best tradespeople we can produce. Let us make sure they have the right tools and mentors to accomplish this. The why and the when are also our responsibility. Let us write that computer program properly so that it works when we need it to work.

In closing, on behalf of Leesa, Jeff, and myself at BCWCA, we hope you had a healthy, safe, and prosperous holiday season and we wish you all the best in the new year. Thank you to our suppliers and contractors for your continued support and interest in your training facility. We look forward to seeing more and more youth pass through our doorway and leave with further interest and ambition in our wall and ceiling trade. Until next time, cheers. ■ wallandceiling.ca » Winter 2019 » 5

Trowel_Winter19_19Dec2018_201.indd 5

2018-12-20 4:18 PM

industry NEWS OCTOBER BRINGS A STEADY CONSTRUCTION LABOUR MARKET IN BC

FOREIGN STEEL TARIFFS THREATEN CANADA’S CONSTRUCTION INDUSTRY

The unemployment rate in BC remained unchanged in October bringing the province to its 14th consecutive month with the lowest rate of job seekers in Canada. With a national unemployment rate of 5.8 per cent, BC comes in considerably under the wire at 4.1 per cent, says Statistics Canada’s Labour Report.

Canada’s federal government’s 25 per cent surtax on certain foreign steel products is meant to conquer the effects of ‘dumping’, but stands to place the industry in a difficult position.

BC’s unemployment rate dropped 1.1 per cent in September, a sign of the province’s strong economy, says Bruce Ralston, BC’s Minister of Jobs, Trade, and Technology.

“Strong job growth, low unemployment and good wages support a better quality of life for all British Columbians,” he said in a statement released in November, when BC gained 48,000 jobs over the previous month.

BC’s construction industry is in a strong position leading into the new year. As of October, 2018 there were only 5,400 unemployed in the province’s construction industry, up a little since September of that year. However, the rate is still sitting at a 10-year low with only eight per cent of Canada’s unemployed construction workers living in BC. On the horizon, Kitimat’s $40-billion LNG Canada project will introduce approximately 10,000 construction jobs to the region over the plant’s building schedule. ■

BC NEEDS PROMPT PAYMENT Prompt payment legislation is needed in BC, and the website to learn more about it is live.

Payment delays are the most significant bottleneck in BC’s construction industry. These bottlenecks push risk down the construction chain, which leads to fewer competitive bids on projects, higher costs, layoffs, and in the worst cases bankruptcy. Timely cash flow throughout the construction payment chain is fundamental to a healthy construction industry.

Over 80% of work in the construction sector is completed by trade contractors and their employees. Their success and the health of their businesses is vital to the health of the sector as a whole and to the economy of British Columbia.

The current situation sees delayed payments trickle down the chain creating both hardship and a serious reduction in efficiency in the construction industry. It also increases the cost to finance company operations and drives up the cost of construction overall.

“Excessive imports” are harming Canada’s steel industry, says the federal finance department, spurring action to impose the tax, which applies to seven products ranging from rebar to wire rods.

The surtax is in place for 200 days, pending an inquiry by the Canadian International Trade Tribunal (CITT) to determine the need for longer-lasting safeguards, says Government Canada.

Canada imposed tariffs on $16.6 billion worth of American goods in July, 2018—retaliation for significant US tariffs on Canadian steel and aluminum.

Canadian manufacturers can now import those products from the United States without paying the surtaxes that have applied since July 1. A portion of the relief will be temporary, offered until Canadian producers are able to adequately meet domestic demand.

The exemption applies on a case-by-case basis to companies that applied for it, and pertains to American steel, aluminum, and certain other products.

Jesse Goldman, a lawyer representing the Canadian Coalition for Construction Steel, said the surtax puts the construction steel industry in “a very dire position” because of Canada’s limited domestic steel supply.

“Because of the actual quota amounts for this type of steel from non-US sources, US steel is going to come into Canada at record high prices,” Goldman told the CBC. “They will simply pass on the 25 per cent retaliatory tariffs to their Canadian customers.”

The surtax on steel plates and other products could “jeopardize” mega-projects in Newfoundland, which rely almost exclusively on foreign steel, primarily from Europe, Goldman said.

A lot of imported structural steel has been put toward the refurbishment of the Parliament buildings, he added. “It’s more ironic than intentional, but it gives you an example of the importance of imported steel in Canada.” ■

Visit www.promptpaymentbc.ca to learn more. ■ 6 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 6

2018-12-20 4:18 PM

industry NEWS BUILDING SECTOR WELCOMES BC CLIMATE PLAN AS GOOD FOR BUSINESS

Fourteen leading companies and organizations working in BC’s building sector say the province’s new climate and clean growth plan lays down a solid foundation for the decarbonization of our homes and buildings.

“BCIT’s School of Construction and the Environment supports the needs of industry in advancing the state of practice in sustainable construction through education and trades training,” says Wayne Hand, dean of the School of Construction and the Environment, British Columbia Institute of Technology (BCIT). “We look forward to working with the Province to advance the CleanBC vision of a zero carbon building sector.”

The CleanBC strategy outlines an ambitious suite of measures projected to cut carbon pollution from the built environment by 40 per cent by 2030. Notably, through the BC Energy Step Code, the province is the first in Canada to define a clear path for all new buildings to be net-zero energy ready (ultra energy efficient) by 2032.

The Province is investing in training for trades workers and professionals, and in new incentives to upgrade homes and businesses to make them less polluting. The plan also creates an energy rating requirement to ensure everyone investing in real estate, whether buying a home or leasing an office, has information on building energy performance while weighing their options. Transparency will be a key driver of innovation for the sector.

The climate plan, however, leaves some critical questions unanswered, particularly with respect to preparing existing homes and buildings for the clean future. It’s estimated 70 per cent of buildings standing today will still be in use as of 2050.

Between now and then, there will only be one or two can’tmiss opportunities to retrofit each of these buildings. (How do we ensure these upgrades result in a low to zero carbon building? And how do we ensure new buildings are not only more efficient, but also heated by low carbon sources?)

The coalition of companies and organizations working in BC’s building sector is calling for more clarity in Phase 2 of the climate plan, expected next year, on the roadmap for buildings beyond 2030 and all the way to 2050—particularly concerning electrification, fuel choices, and the role of utilities in this transformation. To establish a steady retrofit economy, those companies and organizations also need new financing tools and a sustainable source of public funding, such as green bonds, to avoid the boom and bust of incentive programs.

By pursuing these opportunities, it is possible to reduce carbon pollution while saving money, creating local jobs, and opening export markets for BC-made components and designs.

“The measures outlined in the CleanBC strategy demonstrate a clear path forward to addressing the serious issue of climate change,” says Jason Packer, principal and senior green building strategist, Recollective Consulting. “This is a big undertaking, but it is doable; we are working on building projects that already meet the 2032 energy performance goals today. It is encouraging to see leadership at the provincial level. Let’s get on with it with the urgency this issue deserves.”

Join the conversation at #cleanBC. ■

HIGH PERCENTAGE OF OPIOID OVERDOSE VICTIMS WORKED IN CONSTRUCTION INDUSTRY, SAYS STATSCAN REPORT Many of BC’s thousands of opiod crisis victims worked in construction, says a recent Statistics Canada report.

The federal agency released a report on November examining the demographics and circumstances of the people who died of overdoses between 2011 and 2016 with the goal of creating better interventions for people at risk. In BC, the majority of overdose victims were men between the ages of 25 and 54, and about 20 per cent of them worked in the construction industry.

Chris Atchison, president and CEO of the BC Construction Association, said that projects under his organization are highly regulated and the safety of their workers is a priority.

“The phrase ‘zero tolerance’ does come up, but I would contest that there has been an evolution in the construction industry over the past 20 years to put safety and supports both for workplaces and workers at a paramount,” Atchison told All Points West guest host Megan Thomas.

He said as a major employer in BC they’re striving to be leaders and have led a number of courses on worksites to provide naloxone kits and information on addictions counselling.

Atchison says the report brands construction as the industry where opioid use is rooted, because 95 per cent of the workforce is male and largely in the 25-54 age demographic.

“I would argue it’s not just construction, that there are many other industries… being impacted by this,” he said. “We desperately want to be part of the solution.”

Other jobs held by a high percentage of victims include building maintenance, waste management and other support services, accommodation and food services, retail trade, manufacturing, transportation, and warehousing. ■

wallandceiling.ca » Winter 2019 » 7

Trowel_Winter19_19Dec2018_201.indd 7

2018-12-20 4:18 PM

2019

CONSTRUCTION

OUTLOOK

The next decade likely won’t be like the last. After about 20 years of solid growth that saw the doubling of Canada’s construction workforce, one quarter of a million people are now expected to retire from the industry by 2027.

© Can Stock Photo / akarelias

By / Jordan Whitehosue

Trowel_Winter19_19Dec2018_201.indd 8

2018-12-20 4:18 PM

AND

while construction activity is slowing slightly overall, that’s still too many retirements to keep up with demand, says Bob Blakely, Canadian operating officer at Canada’s Building Trades Unions (CBTU).

“We have to understand that for every person that we’re going to graduate through the trades training system, we have to get slightly more than one extra person to start,” he says.

Over the next few years, a significant number of them will continue to head to Ontario and British Columbia, where growth is still peaking and where in BC alone the need for non-residential workers may increase by 25 per cent. In the east, though, demand will likely weaken, especially in Newfoundland and Labrador, which could see employment contract a further 20 per cent until 2024. Resource-driven Alberta is on shaky ground too, of course.

Despite the approach of a plateau, the industry won’t be contracting by 250,000 jobs. And finding the people to keep up with demand is going to take some innovation, especially when looking for science, engineering, technology and math (STEM) workers, says Mary Van Buren, president of the Canadian Construction Association (CCA). “STEM workers are in increasing demand, but finding talent is a challenge because construction is not always seen as technologyforward.”

That culture change will have to extend to the millennial generation as a whole, agree Blakely and Van Buren, a generation that’s just starting to take on more leadership roles.

Millennials tend to bring a collaborative style to the workplace and they demand respect in that workplace. “When I was an apprentice, it was okay to train by fear, to train by being mean to people, to train by ridicule and by sarcasm, to learn by failure,” says Blakely. “The idea was that this was the way that we get rid of the weak ones, the ones who weren’t going to cut it. Well, that was a lie. We got rid of the smart ones, in some cases. We can’t afford to do that anymore.”

They also can’t afford to let investor confidence continue to slip, which has been due, in part, to an unfavourable tax climate relative to the US and the ongoing trade wars, says Van Buren. That’s why, in November, the CCA said it was happy with the federal government’s fall economic update, which included commitments about prompter payment, accelerated depreciation, support for attracting under-represented segments into construction, as well as for increased funding for infrastructure and innovation.

That innovation piece is really important, says Van Buren.

“The industry is not as productive as other leading countries, and so the government’s announcement of adding more funding [$800 million] to the Strategic Innovation Fund is good news. We’ll definitely be looking to access some of that.”

This is one reason organizations like the CCA and the industry in general are trying to widen their typical demographic target pool to better include women and Indigenous peoples.

The CCA, for instance, released an Indigenous Engagement Guide in 2016 to help the industry engage more effectively with Indigenous companies and communities in Canada.

More recently, the group has asked the federal government for 1,000 co-op placements in STEM fields that target women, Indigenous peoples, and new Canadians.

No doubt a big part of that innovation will happen in big data, adds Van Buren. As technology gets further embedded and connected in our cities, all of that collected information could be very powerful to people. “Privacy is an issue, of course, but people may be will be willing to exchange some data in order to get a benefit, such as when the next train will arrive.

So it’s going to be a whole new area of interest in how we manage all of that big data that’s going to be collected from our infrastructure.”

“We believe that if they have a taste of construction, then they’ll see the connection that they can have to Canada’s infrastructure,” says Van Buren. “These are tangible things that people can see, touch. But they need to be exposed to it, because it’s not top of mind.”

Which brings us back to that need to attract more workers to those STEM positions, in particular, and to the construction industry in general. It’s an issue that continues to be top of mind across the country and across the industry. It’s still unclear how it will all play out.

There is also going to have to be a culture change if the industry is going to attract – and retain – more women in particular, says Blakely. “You talk to people in the C-suite, and they will tell you that their places of businesses are proper, respectful workplaces. You talk to the middle managers, they don’t say much, just look at their feet. But if you talk to the bright young women who just started working there, they’re going to tell you that it isn’t quite the caring and sharing workplace that the people in C-suite think it is. So how we handle that piece is incredibly important.”

“The baby boom generation has been building Canada for the last 50 years, and though it’s a surprise to them as anybody else, they’re retiring,” says Blakely. Simply put: “We have to find some way to incorporate a quarter of a million people.” ■

wallandceiling.ca » Winter 2019 » 9

Trowel_Winter19_19Dec2018_201.indd 9

2018-12-20 4:18 PM

© Can Stock Photo / everin

British Columbia In Review 2019 By / Jordan Whitehouse

IT’S NO SECRET, of course, that the construction industry is booming in BC In the fall, there were over $115 billion worth of projects happening in the province, which represented a 34 per cent increase over the past five years.

And there’s no sign of a significant slowdown overall any time soon.

In the north alone, the LNG Canada export terminal at Kitimat and the 700-kilometre TransCanada pipeline from Dawson Creek will need about 10,000 people. And that’s in addition to the ongoing Site C dam and hydroelectric project on Peace River, which has employed between 1,900 and 3,700 people per month over the past year.

Things are looking good elsewhere in the province, too, says Chris Atchison, president of the BC Construction Association (BCCA). “And we know this because one of the things we hear constantly, whether it’s on Vancouver Island, in the north, in Greater Vancouver, or in the Southern Interior, is that there are workforce shortages and that the demand for them is at a critical level.”

According to WorkBC, construction sits at number 10 in job openings by industry group in the province, and at number three in the number of jobs that

will need to be replaced over the next decade—54,500. (Trades, transport, and equipment operators are in the top five occupational groups for projected job openings).

One way the industry is trying to attract more workers is by targeting groups that have traditionally been underrepresented in construction. Women and Indigenous peoples being two big ones.

In April, for example, the BCCA launched its Construction Workforce Equity Program, a provincially-funded pilot that’s meant to help employers more easily adopt and champion policies that guarantee the equal and fair treatment of women. One offshoot, says the BCCA, is that it will also hopefully improve female retention in the trades and lead to a decrease in the number of unfilled skilled tradesperson jobs in construction.

Likewise, the BC government’s new Community Benefits Agreement (CBA)

10 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 10

2018-12-20 4:18 PM

LABOUR FORCE HIGHLIGHTS: BRITISH COLUMBIA Work-ready population: 4,054,600 Labour force: 2,648, 100 Participation rate: 65.3% Not in labour force: 1,406,500 Employed: 2, 531,200 Unemployed: 116,800 (4.4%) November 2018 unemployment rate: 4.4% - Up .4% from October, down .4% from 12 months ago Jobs added in November: 33,400 part-time Jobs lost: 17,500 full-time Canada’s unemployment rate: 5.8% National increase over October: 94,100 additionally employed One year ago: 5.9% Jobs for BC men over 25: +1,500 Labour force increase (men): +4,900 Oct-Nov unemployment rate (men): 3.4% from 3.1% Jobs for women over 25: 13,800 Labour force increase (women): 16,400 Oct-Nov unemployment rate (women): 4.5% from 4.4% Youth 15-24 Oct-Nov Unemployment rate: 7.3% from 6.7% *From Labour Force Statistics Highlights Issue#18-11

for major public-sector infrastructure projects has a focus on priority hiring and training of women and Indigenous peoples.

Not everyone’s happy with that CBA overall, though. As good as it could be for the underrepresented, some don’t like the stipulation that all workers working under these agreements are required to be trade union members.

“We fundamentally agree that community benefits in public infrastructure projects are a good thing,” says Atchison, “but expecting somebody in a free market society like

we have to be compelled to join a union in this day and age just doesn’t make any sense.”

Union or no union, though, the push continues to find more workers and to develop more resources to attract them.

“Workforce shortages are going to continue to be the primary focus of the industry,” says Atchison. “And when employers are looking for good crews, they’re going to need to know that there are supports and services available to them as employers and to the workforce that they want to engage and keep engaged.” ■

How will you conquer 2019?

Visit https://www.surveymonkey.com/r/XRPWMDK or text 250-816-3671 for a live link to The Trowel’s first annual construction outlook survey for the wall and ceiling industry. It only takes three minutes to tell us what is on your mind and all responses are anonymous.

Thanks for your help! wallandceiling.ca » Winter 2019 » 11

Trowel_Winter19_19Dec2018_201.indd 11

2018-12-20 4:18 PM

Steady as she goes...

BCWCA weighs in on construction in 2019

By / Jordan Whitehouse Photo courtesy of / Can Stock photo everin

ONE LOWER MAINLAND COMPANY may have best summed up the overall state of the BC wall and ceiling sector with these four words: “steady as she goes.” Like last year, members are telling BCWCA Executive Director Jeff Triggs that the scope of work will be more of the same for 2019, and that it’ll be busy.

But that doesn’t mean there aren’t concerns, of course.

“There is a lot of overhanging uncertainty being created by new taxes, mortgage rule changes, climbing interest rates, the United States political situation, and the provincial NDP government,” says Triggs. “The group also thinks there will continue to be a drop in single-family home sales.”

For those in the residential market working on those singlefamily homes, the foreign-buyers tax continues to have an impact. In February, the province upped the tax to 20 per cent from 15 and expanded it to Victoria, Nanaimo, the Fraser Valley, and Central Okanagan. Sales may continue to drop, but because of the “arbitrary” nature of how the tax borders were drawn, the tax is also just moving sales from one populated area to the next, says Triggs.

As usual, the Great Boomer Retirement will continue to spur the need for more workers to enter the trade, specifically youth, says Triggs. “Our members are competing with the tech industry for the hearts and minds of our youth, and it’s been a tough fight.”

One way the BCWCA is trying to advertise the trade to young people is by keeping up with its participation in SkillsBC. The not-for-profit and charity has been around since 1994,

promoting technical and trade skills among BC youth with everything from an annual conference for young women to inschool presentations for kids in grades six to twelve. SkillsBC also runs popular trades and technology competitions, which the BCWCA has helped supply.

It’s been government, though, through the Industry Training Authority (ITA), that’s at the forefront of training and marketing the trades. For 2018/19, the ITA’s priorities include upping the number of employer sponsors; removing barriers for underrepresented groups like women and Indigenous peoples; assessing how innovation and technology can be used to improve the effectiveness of training programs so that more apprentices obtain their Certificate of Qualification; and increasing work experience opportunities for youth apprentices while still in high school.

There are also grants and tax incentives available for apprentices (and employers) who complete school, adds Triggs. “I think we all need to do a better job at promoting these breaks as they can be a major help to young people who are trying to juggle schooling and time away from work. We want to make our trade and training as attractive as possible.”

And no wonder. While there may be fewer jobs being tendered in the Southern Interior, there’s still a big need for workers.

On the Lower Mainland, there appear to be lots of tenders, and one company thinks that from the second quarter onward in particular, it should be really busy there.

Steady as she goes, indeed. ■

12 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 12

2018-12-20 4:18 PM

EIFS Council of Canada Architectural Design Awards 2017-18

Marriott Courtyard & Conference Centre

Category: Low-rise residential Architect: Saplys Architects Inc. EIFS Manufacturer: Durabond EIFS Contractor: Saverino General Contractors

Photos courtesy of / EIFS Council of Canada

The Marriott Courtyard & Conference Centre brings a warm, welcoming presence and much-needed infrastructure to a growing business environment community in Mississauga, Ontario. The project uses the natural landscape of the site to create an open courtyard on the south elevation, providing an open and natural appeal to a relaxing atmosphere.

The project uses prefabricated panels to add to the speed of construction, and integrates innovative, unique finishes for a more appealing presence. The combination of stone and stone replicated finishes creates a solid appeal, and curved walls and flying beams provide a decorative aesthetic enhancement. An interesting cantilevered and open style parapet enhances the visual aesthetics of the building, while a blend of traditional construction with prefabricated floor slabs and prefabricated exterior enclosure ensure the buildings high quality and enduring longevity.

The project utilizes EIFS throughout the building inclusive of being the substrate for a stone veneer cladding while maintaining the thermal and drainage features of geometrically defined drainage cavity (GDDC) EIFS by Durabond.

The system is a fully drained rain screen principle approach inclusive of two staged vented sealants. Through the implementation of prefabricated EIFS panels, it incorporates refined detailing and ideal terminations and interfacing with other components, especially at the fenestration components.

The EIFS effectively utilizes a blend of natural aggregate finishes, smooth accent coloured features, and contrast in colours to produce a visually stunning façade. EIFS panels have allowed the project to have very little waste material and increased flexibility for added insulation. ■ wallandceiling.ca » Winter 2019 » 13

Trowel_Winter19_19Dec2018_201.indd 13

2018-12-20 4:18 PM

Taxes & Books: A Practical Guide to Preferring Paperwork over Dental Surgery By / Jessica Kirby

If you are the kind of person who cringes at the word “tax season” and would rather have dental surgery than deal with your books, you've come to the right place. Let's face it: if you own your own business and are reasonably successful at running it, that is because you are good at your trade—this does not make you an automatic expert at bookkeeping.

Most companies with five or more employees have bookkeepers to keep things in order, but many assign the task to their administrator, their spouse, or (gasp!) tackle it themselves. No matter the option you choose, there are small tasks contractors can take each week that will keep costs down, keep the person on the other end of the calculator happy, and lower the tax-season-related stress by about a billion percent.

Check these out.

Be Organized. Sounds simple, but it is the first step for a firm foundation in getting your books together and making the entire process run smoothly. And I don't mean kind of organized—I mean enviably organized because the better job you do at this, the happier and less of a maniac you'll be at tax time.  Keep every receipt, mileage log, and invoice copied and stored in its appropriate file or place. Hard copies can be filed and soft copies should have folders online. Enter the totals into bookkeeping software immediately.  Organize expenses – tools, office furniture, car repairs – in their own files and enter totals into a spreadsheet or accounting software weekly.  Plan specific time each day for these tasks—maybe over coffee or at the end of the day.

Separate Business and Pleasure. In the event of an audit, the Canada Revenue Agency may wish to see everything you have by way of business accounts and book work—do you really want the agent to know about your trip to Vegas?  Keep all business expenses, accounts, credit cards, documentation, and payment information separate from your personal accounts. Never use one to pay for the other.

Trowel_Winter19_19Dec2018_201.indd 14

2018-12-20 4:18 PM

 Pay expenses that are for business and pleasure combined from the business account and note the percentage that applies to business use.  At the end of each month, toss your bank statement in the correct folder and boom—you've got something solid to hand to the bookkeeper.

Get your Head in the Cloud. That's right: it is time to move away from hard copies and start using cloud-based accounting software so you can save time, effort, and guesswork and have more time for golf and that trip to Vegas. Cloud software simply means you access it using an Internet connection and it updates in real time for all users to see. There are no downloads, no hardcopy updates. Just seamless integration into getting the job done well.

Quickbooks is the tried, tested, and true software most contractors love because there are three different versions, options for payroll, and it can be used by anyone with the correct login information, any time, anywhere, .  Freshbooks is another great one, particularly for smaller businesses and for solo enterprises. It comes with invoicing, light payroll, and seamless tax total integration.  Do your research on other paid, a la carte, and free options, and find one that your accountant can access seamlessly at tax time.

Do the Leg Work. Whether you drop a bag of crumpled receipts on the bookkeeper's desk or email the bookkeeper a neatly filled out Excel sheet and an envelope of sorted hardcopies could change the cost of the service by thousands.

Your choice.

• Reconcile your bank statements each month so the bookkeeper doesn't have to track you down for anomalies.

• Keep your items in a folder sorted by month and topic and use it.

• Have the bookkeeper design your filing system so when the paperwork heads in her or his direction, everything is in order.

Chase down bad debt like Liam Neeson in “Taken”. I mean that metaphorically, of course, as reliving his “I will find you” scene for real could land you in the slammer, but kidding aside unpaid accounts deserve your strict attention. Unless you are in the business of interest-free loaning, be sure to have a system in place for securing prompt payment and meaningful follow up on delinquent acocunts.  Set clear, strict deadlines on customer payment terms.

 Blacklist repeat offenders—they will eventually cost you more than they will bring in.  Chase every late payment, no matter the size. It all adds up.

Plan for the unexpected. Major expenses can come at any time—inventory, equipment repairs, even large tax expenses can all creep up and seem overwhelming if you aren't ready for them. Be sure to have a contingency plan, and if you never need it consider it a bonus upon retirement.  Set aside a five to ten percent contingency plan  Once the money is set aside, pretend it doesn't exist unless something big and essential comes up.  Plan for a tax amount similar to the previous year plus five per cent. If you have funds left over, invest them or kick start the following year's contingency account.

Keep in touch with your accountant. If you simply drop in once a year at tax time, you aren't getting the most you can from this valuable and knowledgable professional. A great accountant can advise on bookkeeping tips and small business tax credits and deductions, and can help to set up good accounting systems useful year round such as payroll, tax preparation, and business planning.  Have your accountant look at your business plan and operational systems and point out inefficiencies or areas to improve.  Check in bimonthly for advice on record-keeping or impeding tax breaks.  Make sure paperwork and records are in order for tax time. This will save the accountant time, save you money, and save you both headaches.

Leave a trail for the CRA. You aren't the only one capable of movie star antics when it comes to chasing down trouble.

Canada Revenue Agency means business when it comes to questions in your paperwork, so make sure your audit trail is clear and easy to follow, and if you have any questions call CRA to clarify.  Observe logical order when handling invoices, cheques, and other numbered items—don't skip any numbers and store all documents by date.  Keep business and personal expenses separate and keep good records in a ledger and online.  Review the previous tips and make 2019 the year to put them into place. It is never too late to get organized and feel great about a fresh new start. ■ wallandceiling.ca » Winter 2019 » 15

Trowel_Winter19_19Dec2018_201.indd 15

2018-12-20 4:18 PM

Excellence in Workmanship Peninsula Wall & Ceiling Meeting the Challenge By / Deb Draper Photo scourtesy of / Peninsula Wall & Ceiling

16 Âť The Trowel

Trowel_Winter19_19Dec2018_201.indd 16

2018-12-20 4:18 PM

Peninsula Wall & Ceiling of Surrey, BC received the 2018 Best LMWCA Project Award for its work on two new stateof-the-art luxury vehicle showrooms at 13460 Smallwood Place in the expansive Richmond Auto Mall.

It all started three years ago in September 2015 when familyowned and -operated Cowell Auto Group, in the business of selling cars since 1967, broke ground at the future location of its vision of side-by-side Audi and Jaguar Land Rover showrooms. Next, the three buildings already on site were demolished with 90 percent recycled into the new construction.

"It was a very unique project from the start," says Jim Paulsen, president and owner of Peninsula Wall & Ceiling, the BC Wall and Ceiling Association (BCWCA) member contracted to deliver the ceilings and walls of both showrooms. The two independent stand-alone buildings, more than 100,000 square feet each, had to reflect the materials and designs specific to the very different brands while conforming to local and provincial standards and regulations.

The ceilings throughout consist of high-end Celebration™ acoustical metal ceiling panels manufactured by CGC, featuring the strength and corrosion-resistance of aluminum while fulfilling the design aesthetic of both vehicle manufacturers. The Audi brand specifications particularly made for a lot of time at the drawing board before the first panel could be installed.

As Paulsen explains, "The most challenging part of this project was in constructing Audi's imaginative designs while finding ways to combine North American building materials and methods with German-engineered lights and fixture expectations."

His experienced tradespeople would have to frame and finish each panel independently in order to accommodate all the many challenging light fixtures. But then the lighting specs were changed before the job could even get started, and Peninsula's team had to go back and redesign all the premanufactured panels to build the ceilings.

"As it turned out, the lighting package was changed many times, but CGC did a great job helping us design the layout for those acoustical metal panel ceilings," notes Paulsen.

"In the end, the ceiling package alone came to about half a million dollars out of the total $40 million contract."

But the challenges didn't end at the ceiling. The Audi showroom would feature extensive radius-slope curved walls, bulkheads, and ceilings that had to be precisely framed before the gypsum product was applied. Steel-studded drywall

was built on a slope, designed to create a racing wall curving along the top perimeter of the long showroom wall. The application of a special finish over the gypsum created the illusion of skimming along the famous German Autobahn Superhighway.

Both showrooms have two floor levels, but the Audi design extends even further up to a third floor "New Car Ownership" room where the customer's vehicle is elevatored up, then driven into a very classy lounge-setting where it is introduced to its new owner in style.

The Jaguar Land Rover British design called for a catwalk to span the entire length of the building on a mezzanine level for looking down upon the showroom from above.

Both buildings feature covered entrance parking with extensive metal ceiling panels keeping customers dry and comfortable when they arrive. Paulsen sourced all the materials for the project from WSB Titan, Canada's largest independent wallandceiling.ca Âť Winter 2019 Âť 17

Trowel_Winter19_19Dec2018_201.indd 17

2018-12-20 4:18 PM

Project Spotlight

building supplies dealer and BC Ceiling Systems, carrying one of the largest selections of ceilings in Western Canada.

Text ■ The Audi showroom was completed in June 2017, followed

by Jaguar Land Rover in December 2017. Looking back, Paulsen recalls, "On paper this project looked amazing, but the reality was an incredible amount of pre-planning and predesigning by Dan McDonald, our construction manager, with the manufacturers and weekly meetings with the architects and the contractor to make it all come together."

Starting out as a wall and ceiling installer before making his way to becoming a journeyman, a superintendent, and then project manager, Paulsen eventually decided to start his own company in 2004. In 2007 McDonald was brought on board

as a co-principal as well as taking on the title of construction manager. Through the years since, they have built a successful business while coming to specialize in high-end retail commercial projects such as the Hard Rock Hotel and Casino renovation (another award-winning project from 2014) with its intense wall and ceiling designs.

"We prefer these types of projects," says Paulsen. "We find them more interesting, and they give the tradespeople who work for us an opportunity to experience working on much more complex projects."

It was a challenge, this project; it was difficult and at times frustrating, but in the end has added yet another layer to the Peninsula Wall & Ceiling portfolio of accomplishments. ■

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.

C

M

Y

CM

MY

CY

CMY

K

18 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 18

2018-12-20 4:18 PM

strategic PLANNING WHAT’S A STRATEGIC PLAN WORTH? Across sectors and services, there’s a huge drive to prove value – often expressed in terms of return on investment, or ROI. To figure out ROI, you need to think about the benefits something yields in relation to the costs.

When there isn’t a direct line of sight to a financial return, though, it can be very difficult to trace quantifiable benefits.

Strategic planning may not directly generate revenue or control costs (and of course it does cost money), but that doesn’t mean you can’t think about it in terms of ROI regardless.

Let’s start with the benefits. A clear strategy, with a wellexecuted plan will help you… … focus your staff (and volunteer time, where relevant) on critical activities that really advance your mission – and avoid dead-ends and time-wasters. … target marketing and communication dollars on segments and audiences who can really help you grow. …avoid expenditures that don’t really support the strategy. … protect your revenues against threats coming from the external environment. …take advantage of growth opportunities.

So, what’s that worth? What kind of boost does that give you in financial terms?

Let’s imagine an annual operating budget of $3 million. Most strategic plans have a planning horizon of 5 years, depending on industry, but to be conservative let’s say your plan only will last 3 years, for a total of $9 million worth of budget to be managed over the life of the plan.

At that size, if you think that a strong, strategic plan can actually give you a 5% boost – either in spending smarter, earning more revenue, or reducing/avoiding costs, or some combination of these – that’s worth almost half a million dollars to you over the life of the plan.

By / Meredith Lowe

If you think the boost could be more like 10%, then that plan is worth $900,000.

Of course, if your budget is more like $10 million, then a 5% benefit starts to look more like $1.5 million over 3 years. And if your budget is larger, even a very small percentage benefit will be highly valuable.

Remember, these are all incremental benefits – over and above whatever else might be happening. Whether you get it from greater revenue or avoided costs, this turns into money you can now spend on other things – more programming, innovation, expansion…

Your planning budget – even including robust research – would have to be enormous for the ROI to be anything other than sky-high.

Now, on paper, the plan isn’t worth anything. But, if you implement it with some discipline, a good plan will help you avoid costs, make smart investments, and bolster revenues, because it will drive both your strategic and operational decisions. What is that really worth to you?

If you are interested in starting a conversation about strategic planning – with an initial consultation that doesn’t come with any charge or obligation – please get in touch. ■ Meredith Low is a management consultant specializing in strategy, research, and marketing for professional associations and business-to-business companies. She can be reached at meredithlow.com. Read this post at meredithlow.com/whatsstrategic-plan-worth/.

Watch for the BCWCA at the Skills Canada competiton April 17, 2019 at TRADEX. For more information on this event visit:https://skillscanada.bc.ca/ wallandceiling.ca » Winter 2019 » 19

Trowel_Winter19_19Dec2018_201.indd 19

2018-12-20 4:18 PM

it’s the LAW A SMALL MISTAKE = BIG COSTS FOR A NEGLIGENT SUBCONTRACTOR General contractors take on significant legal exposure when agreeing to build a new home or even to renovate an existing home. For instance, general contractors may be liable for the negligent work of their employees or others engaged by them in connection with a construction project. The recent case of Edwards v Parkinson’s Heating Ltd., 2018 BCSC 593 addresses a general contractor’s liability in relation to a subcontractor who was alleged to have negligently installed and/or serviced a fireplace, causing serious carbon monoxide poisoning to the homeowners.

The Facts The plaintiffs in this case hired a local general contractor (the “General Contractor”) to renovate their two-storey detached home in Vancouver (the “Project”). The General Contractor, in turn, hired the defendant subcontractor (the “Subcontractor”) to perform the mechanical, gas, and fireplace work at the Project. In performing its scope of work at the Project, the Subcontractor removed, and later reinstalled, a fireplace to accommodate ongoing renovations.

After the renovations were largely completed, the Subcontractor was hired directly by the homeowners to service their fireplace, and did so on two separate occasions.

Following the servicing of the fireplace, the plaintiffs began to experience concerning symptoms, including: severe headaches, loss of balance, loss of concentration, nausea, and fatigue. The plaintiffs’ friend suggested that there might be a gas leak. After inspection, it was determined that high levels of carbon monoxide – a colourless, odourless, and tasteless poisonous gas – were indeed emitting from the living room fireplace.

Upon further investigation, it was determined that the cause of the leak was a missing screw designed to secure the draft hood to the spill tube, which vents carbon monoxide and other exhaust gases from the fireplace. This caused a gap allowing carbon monoxide to vent directly back into the plaintiffs’ home.

The Subcontractor ultimately replaced the screw, but the plaintiffs asserted that they had already suffered brain damage from exposure to carbon monoxide in their home. As a result, the plaintiff homeowners sued both the General Contractor and the Subcontractor for the negligent installation and servicing of the fireplace.

The Decision After a lengthy trial, the BC Supreme Court held that the Subcontractor, but not the General Contractor, was liable in negligence.

By / Andrew D. Delmonico and Matthew Potomak

The plaintiffs argued that the General Contractor and the Subcontractor each owed and breached an independent duty of care to the plaintiffs to install the fireplace in a reasonably competent and safe manner free from any latent and dangerous defects. However, the Court was unable to find persuasive evidence that either defendant was negligent in the original installation of the fireplace.

However, the Court did find that the Subcontractor breached a duty of care to the homeowners when it later serviced the fireplace and failed to note the missing screw, which would have helped to ensure the proper ventilation of poisonous gases (such as carbon monoxide).

The plaintiffs were ultimately awarded damages in excess of $300,000.00. What could be argued was a small mistake by the Subcontractor in failing to install a screw resulted in both big losses to the homeowners, as well as a sizeable damage award against the Subcontractor.

Lessons Learned 1. Even though in this case the General Contractor was found not to be liable for the negligent work that caused the homeowners’ damages, it should be remembered that a general contractor’s duty of care to his or her clients generally includes a requirement to adequately supervise the work of employees and subcontractors. Given this liability and the overall importance of retaining qualified subcontractors, a general contractor may wish to include a term in its subcontract preventing subtrades from assigning their work to other subcontractors.

2. It is also desirable for subcontractors to carry their own general liability insurance to cover defective work, in addition to the insurance maintained by the general contractor.

This article was written by Andrew D. Delmonico, and Stephanie R. Driedger, 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).

■

20 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 20

2018-12-20 4:18 PM

contractors 101 FINANCING YOUR BUSINESS THE RIGHT WAY Many businesses go broke because they have a cash flow crisis.

This is very different from a profit crisis. It is not unusual for businesses that are making a profit to go broke because they fail to manage their cash flow. Four out of five business failures are due to factors internal to the business. Only one out of five is due to external factors. Failure to manage your cash flow is likely to be the biggest single concern you will ever face in your business.

It is critical that you set up your financing in the correct manner. There are two main uses for money within the business. One is for operations; this is your “working capital”.

Working capital, as we explored in another article, is the capital required to finance your activities. It is defined as your net current assets (current assets less current liabilities). If you don’t have sufficient working capital you won’t be able to meet the payroll and will likely be forced out of business.

You also need to ensure that you have sufficient working capital to finance an expansion. It is essential to use your working capital only for operations and not for long-term use unless you have a surplus of working capital.

The second need for financing is to pay for capital assets such as buildings, equipment, vehicles, and such. These assets are going to be used (and depreciate) over a number of years, and the financing should also be repaid over a number of years.

This is generally referred to as “term debt”.

Financing your Business There are many ways of financing your business. Some will depend on what stage the business is at—startup or mature?

Some will depend on what the financing is for.

Here are some guidelines to consider: Shareholder Loans When you loan money to the company you can take it back tax-free when cash flow allows. You should put a charge against the company’s assets to protect your shareholder loan.

Get a lawyer to register your charge.

Operating Loans under $100,000 It is often better to get a personal loan for amounts under $100,000 as the cost of borrowing is lower on personal loans and the due diligence and compliance of the lender is lower.

Likewise, the on-going fees by the lender will be less. Loan the money to the company as a shareholder loan. See the previous paragraph.

Financing Equipment and Vehicles Lease or buy? It depends. In addition to discussing this with the equipment or vehicle supplier look for a fleet management

By / Ron Coleman

company. Many associations have developed relationships with them and they will provide further insight into acquiring vehicles and equipment. One advantage is that they are not tied to a particular supplier.

Operating/Working Capital Loans I recommended getting smaller loans personally and lending the money to the company. If you are seeking larger loans or prefer not to go with the personal loans you do have a variety of choices. The line of credit type loans tend to be the best choice as they can decrease when you have the cash available to pay them down, thus reducing the cost of borrowing.

There are three different types of institutions that you can use for borrowing.

Credit unions tend to focus more on security. Banks tend to focus more on cash flow and debt payment coverage. It may be worth discussing with one credit union and one bank to get their different perspectives.

The third option for borrowing is the Business Development Bank (BDC). Their lending rates tend to be higher than the commercial banks and the credit unions, but their lending criteria are not as strict. They also tend to be easier to deal with if you get into a cash flow crisis. They are more likely to work through this with you than other lenders.

Did you know that the BDC has an online application for existing businesses to obtain up to $100,000 financing.

Complete the online questionnaire.

Where possible, avoid factoring of accounts receivable as this tends to be expensive. Likewise, secondary borrowers tend to be expensive and have nasty fees attached to them.

If your bank and the BDC turn you down for financing maybe you should reconsider what you are doing.

Mortgages Getting a mortgage for your building needs to be undertaken carefully 1. Is there a fee for the application?

wallandceiling.ca » Winter 2019 » 21

Trowel_Winter19_19Dec2018_201.indd 21

2018-12-20 4:18 PM

advertiser INDEX Can you get the personal guarantees limited in value and time frames?

2. What is the term for the mortgage?

3. Should you go fixed or floating rate?

4. What term are you locking in for if you go for a fixed rate?

5. Can you make annual pay downs of principal and how much?

Your Plan of Action  Take professional advice on obtaining financing.

6. What is the penalty for early cancellation of the mortgage?

 Always allow a cushion to cover extra needs for cash (the rainy-day fund) and with mortgages and term debts always keep two payments available for times of need.

7. What is the history of the lender? Do they have a good reputation for dealing with their customers?

 Make sure you understand the implications of everything you sign.

8. Can you afford the payments?

 When deciding on the business premises consider both the long-term suitability of the premises.

Rental premises When renting premises for your business you want to ensure that you understand the meaning of “triple net” and other terminology. You need to ensure that you are comfortable with all the terms of the lease, including your personal guarantees.

Normally, personal guarantees can be limited to the first two or three years. Also, be aware of what rights the landlord has in the event of you defaulting on the rent. Make sure you get premises that meet your ongoing needs. Moving a business every few years can be very expensive.

Personal Guarantees Virtually all loans will require some level of personal guarantees. If you have a partner in the business are you both liable for the full debt? If one partner reneges is the other on the hook for the full loan or just part of it?

 Make sure you decide if you should rent or buy. ■ Ron Coleman helps make the ownership transition of trade and specialty contracting companies more successful. He ensures that businesses are attractive tto 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.

Happy New Year! We wish you a very successful and prosperous 2019. ~ Jessica, Christina, and Lara, The Trowel ADVERTISER INDEX Company Bailey Metals Products Demand Products Flannery Trim Grabber Construction Products (Canada) Inc. Steeler Ltd (Delta BC)

Phone Page 800.818.2666 OBC 800.325.7540 11 818.837.1155 IFC 800.567.8876 18 877.678.6565 4

22 » The Trowel

Trowel_Winter19_19Dec2018_201.indd 22

2018-12-20 4:18 PM

Praesent aliquam turpis dictum, posuere quis nunc at maximus. Aenean Lorem ipsum dolor sit amet, consectetur euismod sem vitae, tempus nisi. volutpat, orci vitae tincidunt malesuada, adipiscing elit. In ullamcorper laoreet Praesent sit amet cursus magna. In ex turpis commodo orci, at sodales arcu arcu, at porta turpis lobortis nec. Etiam gravida enim sit amet mi semper quam condimentum enim. Suspendisse iaculis eros vitae faucibus suscipit. elementum quis nec nunc. Ut consequat blandit, lectus id porta luctus, odio Duis rhoncus vitae sapien facilisis ipsum consectetur hendrerit bibendum. ipsum pellentesque enim, quis finibus accumsan. Proin elementum egestas Praesent et odio non nulla ultricies tortor felis non augue. Fusce pretium a velit, at maximus lectus egestas egestas ac in nibh. Sed ac auctor tellus. mauris sed ultricies. ultricies. Vivamus tincidunt vel est id In ex odio, molestie non cursus eu, fermentum. Maecenas id leo eu tellus 1. know where your audience is. auctor a nisi. Donec eget tellus vel nibh Cras blandit urna ac dignissim auctor. gravida semper eget quis sem. Donec scelerisque convallis vel quis diam.

Nunc sed mi porta, malesuada ipsum commodo ante non congue sollicitudin.

2. be where your audience is. vel, maximus magna. Mauris dignissim Donec suscipit luctus nunc vitae mattis.

Aliquam maximus orci vitae sem tempor massa, sed maximus ligula malesuada viverra. Praesent ut gravida Sed et suscipit dui. Suspendisse porta convallis nec. Mauris non augue tellus. Duis eleifend porttitor pulvinar. ante turpis, sed maximus mi sodales gravida, convallis metus nec, egestas Aliquam eget odio sagittis, convallis nec. Mauris porttitor feugiat tortor nulla. Morbi venenatis pharetra eleifend. elit a, ultricies massa. Curabitur vitae nec ornare. Fusce eleifend, nisl a Phasellus at justo aliquet, feugiat massa viverra lorem, quis facilisis neque. elementum sagittis, diam risus sodales non, sollicitudin dui. Praesent aliquam In hac habitasse platea dictumst. purus, at finibus quam nisi laoreet turpis dictum, euismod sem vitae, Quisque ac est blandit, posuere purus odio. Fusce egestas convallis euismod. tempus nisi. Praesent sit amet cursus condimentum, bibendum ligula.

Sed ac tortor consectetur dolor semper magna. In gravida enim sit amet mi In aliquam diam at scelerisque posuere. Morbi feugiat sapien nec lacus semper elementum quis nec nunc. Ut scelerisque. volutpat scelerisque. In placerat quam consequat ipsum consectetur hendrerit lectus, at accumsan libero dapibus id. bibendum. Praesent et odio non nulla Suspendisse a purus varius neque In hac habitasse platea dictumst. ultricies egestas ac in nibh. Sed ac hendrerit efficitur vel rutrum dolor. auctor tellus. In ex odio, molestie non Donec non ligula malesuada, mollis cursus eu, auctor a nisi. Donec eget Lorem ipsum dolor sit amet, consectetur dolor et, maximus libero. Curabitur tellus vel nibh scelerisque convallis vel adipiscing elit. Sed tincidunt vehicula commodo vel lacus non iaculis. Ut quis diam. Donec suscipit luctus nunc dapibus. Vestibulum id eros ut nisi semper massa dolor, tristique rhoncus vitae mattis. vulputate consequat. Nunc nec ipsum lorem bibendum ut. In hac habitasse sollicitudin, lobortis ligula in, posuere platea dictumst. Cras gravida dolor sem. Nulla sit amet finibus dui. Praesent Suspendisse a purus varius neque at ligula venenatis egestas. Vivamus vitae massa volutpat, maximus orci ut, hendrerit efficitur vel rutrum dolor. finibus neque sed eros tempus, et Font style: Silom eleifend nisl. Phasellus ligula lectus, Donec non ligula malesuada, mollis elementum erat vestibulum. Phasellus venenatis quis rutrum sed, rutrum vitae dolor et, maximus libero. Curabitur finibus, sapien eu aliquam aliquet, leo sapien. Vivamus efficitur hendrerit commodo vel lacus non iaculis. Ut risus consequat ante, vitae malesuada augue, vel ornare mi venenatis eget. semper massa dolor, tristique rhoncus tortor justo quis magna. Sed posuere Font style:quis Silom Quisque vel ornare arcu. Proin in lorem bibendum ut. In hac habitasse nunc at maximus. Aenean volutpat, enim id ex suscipit pretium. Fusce platea dictumst. Cras gravida dolor orci vitae tincidunt malesuada, ex congue, est quis lobortis elementum, at ligula venenatis egestas. Vivamus turpis commodo orci, at sodales arcu quam augue ullamcorper quam, id finibus neque sed eros tempus, et quam condimentum enim. Suspendisse consequat erat ex et sapien.Suspendisse elementum erat vestibulum. Phasellus blandit, lectus id porta luctus, odio a purus varius neque hendrerit efficitur finibus, sapien eu aliquam aliquet, leo ipsum pellentesque enim, quis finibus vel rutrum dolor. Donec non ligula risus consequat ante, vitae malesuada tortor felis non augue. Fusce pretium a malesuada, mollis dolor et, maximus tortor justo quis magna. Sed posuere mauris sed ultricies. libero. Curabitur commodo vel lacus quis nunc at maximus. Aenean volutpat, non iaculis. Ut semper massa dolor, orci vitae tincidunt malesuada, ex Cras blandit urna ac dignissim auctor. tristique rhoncus lorem bibendum turpis commodo orci, at sodales arcu Nunc sed mi porta, malesuada ipsum ut. In hac habitasse platea dictumst. quam condimentum enim. Suspendisse vel, maximus magna. Mauris dignissim Cras gravida at today ligula venenatis blandit, lectus id porta luctus, odio tempor massa, For sed details maximusand ligula to reserve your dolor space contact Christina Tranberg egestas. Vivamus finibus neque sed eros ipsum pellentesque enim, quis finibus convallis nec. Mauris non augue 877.755.2762 • elementum ctranberg@pointonemedia.com tempus, et erat vestibulum. tortor felis non augue. Fusce pretium a gravida, convallis metus nec,at egestas Phasellus finibus, sapien eu aliquam mauris sed ultricies. nulla. Morbi venenatis pharetra aliquet, leo risus consequat ante, vitae eleifend. Phasellus at justo aliquet, malesuada tortor justo quis magna. Sed feugiat massa non, sollicitudin dui.

it’s simple.

enough said.

Trowel_Winter19_19Dec2018_201.indd 23

2018-12-20 4:18 PM

REDHEADER PRO™

..can cut your labour time in half.

The new Bailey RedHeader PRO™ cuts on-site labour by up to 50% by reducing the number of wall framing members required to frame windows and door openings. The superior strength and carry capacity of the new system means higher performance with fewer members.

Bailey RedHeader PRO™’s one-piece header and jamb replaced conventional boxed headers and built-up jambs which require multiple studs, tracks and screws.

The new Bailey RedHeader PRO™ is preengineered, and pre-cut to specified lengths.

The system uses the same-sized member for the jamb and header for greater functionality. The top of the header is open which allows for easy insulation installation.

@ B a iley M eta l P ro d u c t s Li m i ted

Trowel_Winter19_19Dec2018_201.indd 24

@ B a i l ey M eta l Prod u c ts Li m i te d

sales@bmp-group.com | www.bmp-group.com

@ Ba i l ey M e ta l P ro du c ts Li mi te d

@ ba i l ey me ta l

@ b ai l ey m et al

2018-12-20 4:18 PM