construction business | january/february 2016

January/February 2016 Vol. 13 No.2

Bryan Wallner, CeO, rCaBC | InfrastruCture | rOOfIngBOndIng & InsuranCe | 2016 annual B.C. COnstruCtIOn Industry survey

Surrey BioFuel ProceSSiNg PlaNt

PM 40063056

BURNABY303-8678 Greenall AvenueBurnaby, BC V5J 3M6

Tel: 604.437.6200Toll Free: 1.888.437.1100

KELOWNA107-2040 RoadKelowna, BC V1Y 9N7

Tel: 250.763.3840Toll Free: 1.888.292.6202

CALGARY640-1414 8th Street SWCalgary, AB, T2R 1J6Tel: 403.229.2060

Toll Free: 1.855.229.2002

www.wmbeck.com

Wilson M. BeckInsurance Services Inc.

Constructive Advice — Superior Service

“General Insurance & Contract Bond Brokers”

~ Serving the construction industry ~~ Personal, auto & ICBC fleet insurance ~

~ Commercial insurance ~

Wilson_Beck_MJ2014.indd 1 14-06-26 1:11 PM

dan [email protected]

Cheryl Mah

Jennifer Chan

ron Clay

Jack davidson

Carrie fleming

Monty Klein

Karen liu

steve McConnell

fred Moroz

Peter Osborne

anne stewart

John Weninger

darryl Wind

Bill veenstra

PUBLISHER

MANAGING EdItoR

CoNtRIBUtING wRItERS

B.C./ALBERtA SALES

January/february| volume 13 no 2

PrInted In Canada

PuBlIsHed By

PRESIdENtKevin Brown

vANCoUvER offICE 2221 Hartley ave. Coquitlam, B.C. v3K 6W9tel: 604.549.4521fax: 604.549.4522

toRoNto offICE 1000-5255 yonge st.toronto, On M2n 6P4tel: 416.512.8186fax: 416.512.8344

Copyright 2016Canada Post Canadian publications mail sales publication agreement no. 40063056 — Issn 1710-0380

return all undeliverable Canadian addresses to:suite 1000 — 5255 yonge street, toronto, Ontario, M2n 6P4

PRoUd SPoNSoR of

Construction Business is British Columbia and alberta’s construction magazine. each issue provides timely and pertinent information to contractors, architects, developers, consulting engineers, and municipal governments throughout both provinces. Complimentary copies are sent bi-monthly to all members of the architectural Institute of B.C., B.C. Construction association, B.C. roadbuilders and Heavy Construction association, Consulting engineers of B.C., Construction specifica-tions Canada — B.C. Chapter, greater vancouver Home Builders’ association, B.C. ready-Mixed Concrete association, Independent Contractors and Businesses association of B.C., urban development Institute of B.C. and vancouver regional Construction association.

Inside

industry Focus13 RoofingCommon Hazardous roofing Materials a Historic restorationgreen roofs for stormwater Management

18 Infrastructureare B.C. Water systems at risk?efficient, Modern transportation InfrastructureContractor of the year awards

29 Bonding & InsuranceProject Insurance risksBonding Benefitsthe four Pillars of Bonding

Departments04 Message from the Editor

34 The Legal FileInterface agreementsHonest Contractual Performance

37 Architect Corner a Parametric approach to architecture

38 Industry News

06 ConnectionsBryan Wallner, the new CeO of rCaBC, is focusing on raising the association’s profile and enhancing value to members.

10 Feature Projectthe surrey Biofuel Processing Plant will be the first closed-loop, fully integrated organics waste management system in north america.

21 SPECIAL SUPPLEMENt2016 annual B.C. Construction Industry survey

Cover Photothe surrey Biofuel Processing Plant is currently under construction with the dispersion stack erected in January 2016.

dan gnocatotel: 604.549.4521 ext. 223

MarCH 15 & 16, 2016

nOveMBer 9 & 10, 2016

feBruary 24 & 25, 2016

Construction Business is published six times a year by Mediaedge Communications Inc. as follows: January/february, March/april, May/June, July/august, september/ October, november/december.

Yearly Subscription:CANAdA 1YR $35* 2YR $60*USA 1YR $60 2YR $110INt 1 YR $85 2YR $150*Plus applicable taxes

REPRINTS: No part of this magazine may be reproduced in any form — print or electronic — without written permission from the publisher. Requests for permission to reprint any portion of this magazine should be sent to the publisher.

Circulation Inquiries: 416.512.8186 ext. 232 [email protected]

construction business January/February 20164

Editor’s Note

Infrastructure Spending

As we begin 2016, commodity prices and the loonie have hit historic lows, potentially signalling another rollercoaster ride for the industry

in B.C. and definitely tough times for Alberta. The bright spot is the new Liberal government’s promise to increase growth with infrastructure spending — a doubling of federal investment for public transit, green and social infrastructure over the next 10 years. Recently, the federal gov-ernment committed to fast tracking infrastruc-ture investments for Alberta.

Canada’s aging infrastructure is in urgent need of investment and renewal from bridges and roads to transit and water systems. The 2016 Canadian Infrastructure Report Card recon-firmed that urgency, finding that one-third of municipal infrastructure is in fair, poor or very poor condition. The report indicates that much

of Canada’s municipal infrastructure is at a criti-cal juncture.

Our look at infrastructure in this issue brings attention to the need for efficient public trans-portation and sustaining vital water infrastruc-ture assets. According to study by BCWWA and Urban Systems, communities in B.C. will require at least $13 billion of additional invest-ment to replace existing water and wastewater systems.

Other features include roofing and insurance and bonding. Read about hazardous roofing materials, designing green roofs for stormwater management and the historic restoration of the Christ Church Cathedral.

When it comes to roofing, RCABC is the leading provider of education, warranty pro-grams and technological expertise. Meet new RCABC CEO Bryan Wallner, who plans on

raising the association’s profile and making sure the association maintains its leadership position in the marketplace.

For our project, we spotlight the innovative Biofuel Processing Plant in Surrey, which will be the first of its kind, turning residential and commercial waste into energy. Being delivered as a public-private partnership, the facility will receive and process 115,000 tonnes of organic waste annually and output more than 7 million cubic metres of biogas.

Cheryl MahManaging Editor

BFL CANADA Insurance Services Inc.Suite 200 - 1177 West Hastings Street, Vancouver, BC V6E 2K3

Phone: 604.669.9600 | Fax: [email protected]

VANCOUVER • CALGARY • WINNIPEG • TORONTO• OTTAWA • MONTREAL • QUEBEC • HALIFAX | WWW.BFLCANADA.CA

B F L M A K E S A D I F F E R E N C E

INSURANCE, RISK MANAGEMENT & SURETY BOND BROKERSFOR THE WESTERN CANADIAN ROAD BUILDING AND ROAD MAINTENANCE INDUSTRY

Advertise in Construction Business... and get it working for you!

CONSTRUCTION BUSINESS

Richmond Oval

BC & ALBERTA’S CONSTRUCTION MAGAZINE

January/February 2007 | Vol. 4 No. 2

PLUSVANCOUVER’S DIRECTOR OF PLANNING

BRENT TODERIAN

OLYMPIC CONSTRUCTION

BONDING AND INSURANCE

ROOFING

ARCHITECT CORNER

LEGAL FILE

PM

40063056P

M 40063056


2007 CEBC Awards of Excellence

BC & ALBERTA’S CONSTRUCTION MAGAZINE

March/April 2007 | Vol. 4 No. 3

PM

40063056

N O W I N S I D E !

PLUSBENTALL 5 PHASE 2 • DANA TAYLOR MCABC • WATER & WASTE • CONCRETE


Vancouver International Airport

Expansion Project

BC & ALBERTA’S CONSTRUCTION MAGAZINE May/June 2007 | Vol. 4 No. 4

N O W I N S I D E !

PLUSR I C H A R D C A M P B E L L E C A B C • R O O F I N G • R O A D B U I L D I N G

PM

40

06

30

56

WWW. C O N S T R U C T I O N B U S I N E S S . C A

Endorsed by the leading construction, design and architectural associations, Construction Business is the publication of choice by advertisers who want to reach the decision makers in the multi-billion dollar B.C. and Alberta construction marketplace.

To advertise your products, services and expertise or for more information on customizing an advertising program, please contact:

Dan Gnocato604.549.4521, ext. [email protected]


Connections

Strategic Positioning

A career switch to roofing wasn’t exactly what Bryan Wallner had planned, but it was an opportunity he couldn’t pass up. As the new CEO of the Roof-

ing Contractors Association of BC (RCABC), Wallner brings more than 20 years of senior management and business development expe-rience to the position, taking over from execu-tive vice president Ivan van Spronsen in August 2015.

“I am excited about taking on this new chal-lenge with RCABC and fortunate to be joining a respected organization that has led the roof-ing industry in terms of quality, standards and training,” says Wallner, who has been busy get-ting to know not only the organization but the construction industry at large.

While the industry might be new, providing strategic direction, building stakeholder engage-ment, and implementing operational plans are all familiar territory for the 55-year-old as well as reporting to a board of directors.

“Working as CEO and reporting to the board and ultimately the membership is very similar to my experience in the parking industry,” he says, adding although there has been a learning curve, his main focus is to further expand awareness of the organization and its programs and to ensure a leadership position in the marketplace.

With Wallner’s background in operations and business development, it was exactly what the

board was looking for to move the association forward.

“The board was looking for someone outside of the roofing industry with a strong business background and experience in revenue genera-tion, strategic planning and training. They were looking for someone to take a look at the orga-nization with fresh eyes,” says Wallner. “I’m here not to drive membership but to focus on posi-tioning, pricing and delivering a product that successfully funds the association.”

Born in Milwaukee, Wisconsin, he gradu-ated with a Bachelor of Business Administration from the University of Wisconsin in 1983. His first job was managing the campus residence hall at the University of Missouri which included housing, food service and maintenance. He en-tered the parking industry in 1987 with a com-pany based in St. Louis and spent 10 years there in progressive roles.

In 1999, he was recruited to head Impark in Vancouver as president and to expand the busi-ness across North America. He was responsible for all facets of the company’s operations includ-ing strategic planning, business plan develop-ment and government relations. He then went on to become senior vice president for SP+ Cor-poration in 2011.

When the opportunity at RCABC came up, he was attracted to the leadership role with an established organization.

By CHeryl MaH

“There were a lot of different components and they all were of interest — from a very robust training centre to the Roofstar guarantee that we put to market,” says Wallner.

Established in 1958, RCABC is an associa-tion of professional roofing contractors, manu-facturers and suppliers. Members are responsible for the bulk of the work in the ICI sector but are also active in the multi-family strata sector.

As the oldest roofing association in Canada, RCABC has been at the forefront providing leadership, education, warranty programs and technological expertise to the roofing sector. Long standing priorities for the association in-clude education and training, improving techni-cal standards and ensuring a skilled professional workforce.

“There is a tremendous opportunity with the history and the value of this association in the construction marketplace,” says Wallner. “The board and members have endorsed a three year strategic plan and it’s our job now to move for-ward and execute on those initiatives.”

Some of the goals under the plan include in-creasing the profile of the association and the Roofing Practices Manual and roofing stan-dards; enhancing training and education as well as the value of the guarantee program.

The RCABC’s RoofStar Guarantee Program (5 or 10 year) is a unique guarantee program that ensures quality materials are installed to specific

Bryan Wallner is focused on making sure rCaBC has a leadership position in the marketplace.

FortisBC uses the FortisBC name and logo under license from Fortis Inc. (15-046.9 11/2015)

Build an ENERGY STAR® homeWith the New Home Program

Make your next project stand out from the crowd and receive incentives when building an ENERGY STAR new home or when installing high-efficiency natural gas appliances.

Before breaking ground, contact us first at fortisbc.com/energystarhome.

What is an ENERGY STAR home? Twenty per cent more energy efficient than a home built to code, ENERGY STAR homes feature high-efficiency heating and cooling systems, increased insulation levels and ENERGY STAR certified products and appliances.

Incentives up to

$2,000

We’re working together to help B.C. save energy.

15-046.9_NewHome_PrintAds_8.75x12.25_P1.indd 1 1/5/2016 10:07:35 AM

FortisBC uses the FortisBC name and logo under license from Fortis Inc. (15-046.9 11/2015)

Build an ENERGY STAR® homeWith the New Home Program

Make your next project stand out from the crowd and receive incentives when building an ENERGY STAR new home or when installing high-efficiency natural gas appliances.

Before breaking ground, contact us first at fortisbc.com/energystarhome.

What is an ENERGY STAR home? Twenty per cent more energy efficient than a home built to code, ENERGY STAR homes feature high-efficiency heating and cooling systems, increased insulation levels and ENERGY STAR certified products and appliances.

Incentives up to

$2,000

We’re working together to help B.C. save energy.

15-046.9_NewHome_PrintAds_8.75x12.25_P1.indd 1 1/5/2016 10:07:35 AM


Connections

standards by members. The program is backed by both the contractor and the RCABC Guar-antee Corp and requires inspection of the roof by an independent third party.

“Our number one focus is on the guarantee and figuring out the best way to price and de-liver that into the marketplace. For the Roofing Practices Manual, we want to deliver it in a user friendly format to the roofing design commu-nity. Those two priorities executed properly all drive business back to our members and provide a valuable service to the building owners. The Roofstar Guarantee ties everything together,” says Wallner.

The association is currently evaluating the length and term of the guarantee program. With 5 and 10 year guarantees about to expire, RCABC has a pilot project reaching out to in-stitutional owners to see if there is interest in extending that guarantee with inspection and maintenance.

“We’re also working with the insurance com-munity to educate them on the value we can pro-vide through that guarantee in reducing and miti-gating risk for building owners,” notes Wallner.

An independent research study recently com-pleted on the RoofStar Guarantee by RDH Building Engineering Ltd. found that roofs completed with a risk managed approach mani-fest fewer warrantable problems than roofs com-pleted under any other warranty program.

“It’s the first study that really demonstrates the value of a managed approach to roofing....and that the value of the RCABC guarantee is demonstra-ble and validated and produces less warrantable claims than any other program,” says Wallner.

RCABC also prides itself on its technical expertise and the Roofing Practices Manual remains the definitive standard for roofing in the province. A great deal of time and effort (through due diligence and testing) is put into the manual, ensuring that specifiers and contrac-tors have access to the latest standards and ac-cepted products.

“We want to deliver a cutting edge Roofing Practices Manual for the design community, member companies and stakeholders that is on-line in an updated format and easy to navigate,” says Wallner, who oversees a “dedicated team” of 17 including administrative personnel and training instructors at RCABC’s head office and training centre in Langley.

Currently the association is looking for a manager to head up their key education/train-ing department.

“Once we have the new training manager in place, our third quarter goal for the board is to deliver new training programs or new course structures,” says Wallner, who also sits on the LNG job training committee. “We’re looking at additional training and certifications and in-creasing the number of apprenticeship classes.”

He adds how the association delivers training has changed due to the apprenticeship training age dropping from people in their 30s and 40s to their 20s.

“We’ve had to completely revamp how we de-liver the training — all the manuals and books have been replaced by a tablet,” he says. “One of our instructors is delivering her curriculum in a web game application and teaching people in a new and different way.”

Sustaining a skilled workforce will be critical for the industry and the challenge in roofing is not only to attract people to the trade, but more importantly to retain them.

“The skills shortage is real for us in a couple of ways. One is the lack of warm bodies entering the trades and then once they are trained in roofing to ensure they understand the long term benefit of growing within this industry. We see people not only leaving the trades, but also leaving to go to carpentry or some other trade,” he says.

Despite the current economic slowdown, Wallner is optimistic about the outlook in B.C. with encouraging signs that things might be picking up.

“Some leading indicators about this summer seem to be strong with lots of ICI sector work and additional government funding that should help. We’re optimistic about 2016,” he says.

When Wallner is not busy working, the father of three enjoys coaching and volunteering.

We Rent, Sell or Lease...

9522 - 200 Street, Langley 604•881•9559 Toll Free 1•800•936•9353 www.drivingforce.ca

19 locations across Canada

• New and used leasing• Tailor-made lease programs• 120 pt inspection with every

vehicle purchase• 3 months or 5000 km warranty• Trade-ins welcome• Financing available

• Cars, trucks, 7 & 15 passenger vans, cargo vans, and SUVs

• Corporate, commercial, and retail rentals• Daily, weekly, and monthly rates• Insurance replacement vehicle programs• 30-Day Trial on vehicle purchases• Fleet management services available

• Cars, trucks, 7 & 15 passenger vans, cargo vans, and SUVs

• Corporate, commercial, and retail rentals• Daily, weekly, and monthly rates• Insurance replacement vehicle programs• 30-Day Trial on vehicle purchases• Fleet management services available

• New and used leasing• Tailor-made lease programs• 120 pt inspection with every

vehicle purchase• 3 months or 5000 km warranty• Trade-ins welcome• Financing available


Feature Project

A new organics biofuel processing facil-ity in Surrey will be the first and largest of its kind in North America. When completed, the facility will be the first

closed-loop, fully integrated organics waste man-agement system that will play an integral role in achieving the city’s sustainability targets.

Being delivered as a public-private partner-ship (P3), the $68 million facility will receive and process 115,000 tonnes of organic waste annually and output more than 7 million cubic metres of biogas. The biogas will be captured, re-fined and then injected into the FortisBC grid.

The facility will convert residential and com-mercial kitchen and yard waste into renewable natural gas. The natural gas (up to 160,000 giga-joules) will be used to power the city’s natural gas waste collection trucks, natural gas service fleet and new district energy system. The facility will also produce compost (up to 40,000 tonnes) suit-able for landscaping and agricultural applications.

A consortium led by Orgaworld Canada was selected by the City of Surrey to design, build, finance, maintain and operate the facility for 25

Turning Waste into Energythe surrey Biofuel Processing facility will process residential and commercial kitchen and yard waste into a renewable fuel. By CHeryl MaH

years. Partners include Stantec Architecture Ltd. and general contractor Smith Bros. & Wilson (BC) Ltd. Orgaworld is a Dutch-based company specializing in organic waste recycling with fa-cilities in the Netherlands, the United Kingdom and Canada.

“This project is a milestone for meeting the sustainability goals we have set for Surrey,” says Surrey Mayor Linda Hepner. “It will reduce CO2 emissions in Surrey by 40,000 tonnes a year

— that’s equivalent of taking 8,500 cars of the road per year.”

Construction started in April 2015 and comple-tion is expected for early 2017. The 150,000 square foot facility is being built on 6.6 acres next to the Metro Vancouver transfer station in Port Kells. It is a tilt-up and cast-in-place structure with a structur-al steel roof deck, truss and joists. The project will include composting tunnels, biogas hybrid tunnels and a fully integrated odour abatement system.

January/February 2016 construction business 11

Feature Project

Jeff Musialek, vice president at Smith Bros. & Wilson, reports the project is well underway with 80 per cent of the foundations poured. “We’re pouring the tilt up panels right now and the structural steel will arrive in another month.”

The biggest construction milestone to date is the erection of the facility’s 230 foot high dis-persion stack, which is comprised of four pieces each weighing approximately 176,000 lbs. Once operational, 100 per cent of the treated waste air

from the facility will be sent through the stack, making it a critical component of the facility’s state-of-the-art odour mitigation system.

“The odour abatement system is comprised of a number of different systems including the dispersion stack... ammonia scrubbing, biofiltra-tion as well as some cooling,” says Orgaworld project manager Ryan Lauzon, noting 150 - 200 people are expected on site at peak of construc-tion in the spring/summer.

Integrating the building’s ventilation com-ponents to accommodate the facility’s complex processes will be key.

“The entire structure is under negative pres-sure and maintained that way to enhance the process and as well to prevent any impact on the community. It’s a system we’ve developed over the last 20 years in Netherlands and op-timized, especially the odour mitigation in Canada over the last seven years,” says Lauzon,

SUSTAINABLE VALUE Manufactured in locally established, quality certified facilities utilizing locally sourced raw materials and labour, precast concrete pipe provides true value to both the local and provincial economy with measurable return to the taxpayer.

Support local producers and invest in B.C. It’s your future.

Precast Concrete Pipe has a proven 100 year service life. Concrete pipe is the only product used in the construction of the civil under-ground infrastructure that can make this claim.

Real value is presented when the money spent on a product provides a direct return to the economy it is used in and where it can provide substantiated proof of it ’s performance over time.

Many other products make claim to providing value but the truth is they are manufactured in plants far from the market or their local plants utilize raw materials trucked or railed from hundreds and thousands of miles away.

Much like living closer to where you work, utilizing products manufactured locally with locally sourced materials reduces environmental impact through many tangible and impactful ways.

Additionally, Precast Concrete Pipe is 100% recyclable at the end of it’s life span ensuring a sustainable value to the community, environment and economy.

With continued ongoing improvements in raw materials, gaskets, manufacturing and concrete technologies the precast concrete industry is evolving, improving it’s performance and providing real sustainable value.

The Langley Concrete Group; Supplying Products Communities are Built On, Supporting the Communities we Live in.

WHAT IS THE DEFINITION OF VALUE?

WWW.LANGLEYCONCRETEGROUP.COM 1-800-667-9600


Feature Project

noting the facility uses anaerobic and aerobic digestion technology.

The technology and special mechanical equipment are new to North America and will come from a supplier in the Netherlands. “We had to adapt the European standards to North America and make sure the equipment meets CSA standards,” says Musialek, adding they also had to adapt the concrete mix design and paint coating system in order to accommodate the highly caustic/acidic nature of the materials inside the building.

The one-storey biofuel processing area cov-ers most of the building footprint with a three-

storey administration area attached on the west end, which serves as the entry. The main admin-istrative level houses offices and a laboratory. The second level contains the staff amenities and the third level provides space for visitors with a con-ference room and a roof garden.

The administration area features a glulam structure with extensive glazing which is a strik-ing departure aesthetically from traditional in-dustrial building boxes. The facility will also be painted in different colour blocks to reflect the processes happening inside (eg. black for the waste receiving area) with green being the most prominent colour.

“Stantec came up with a colour coding system to define the building to make it stand out,” ex-plains Musialek. “The building is meant to be a prominent feature for the city where they can bring school kids and the public out for tours. Most of the time these types of buildings are hid-den but this is a showcase for Surrey.”

The project has been progressing smoothly so far, according to Lauzon, but the site did have soft soil which required some ground improve-ment work.

“We had to use rapid impact compaction to prepare the site for construction. We spent a month and half rattling and banging to improve the site’s density,” he says, adding RIC is a cost effective technique as is the use of tilt-up con-struction. Erecting the walls with tilt-up panels is faster than building walls using traditional construction techniques.

“Generally with any P3 projects the sched-ule is always very tight so continually delivering against the schedule is a challenge. Tilt-up will allow us to maintain that tight schedule,” he says.

The unique facility will set a benchmark for organic waste processing in North America and serve as a model for green infrastructure projects.

“It’s an amazing innovative project. I think ev-ery municipality should be looking at this facil-ity,” says Musialek. “Landfills have been the way to deal with waste. This building will show that we can process materials in it with low odour and high quality materials coming out and a positive energy use for the community. It basi-cally turns garbage into gold.”

Lauzon agrees and expects more similar types of facilities in the near future, “It’s a ground-breaking facility for North America. The facil-ity’s capacity for processing and sorting munici-pal organics and delivering biogas to the grid is in itself a great achievement.”

Both credit strong team collaboration for the project running efficiently and smoothly.

“We’ve had great co-operation from our partners — the City of Surrey, Smith Bros and Waste Treat-ment Technology out of the Netherlands. We’re proud to be part of a great project,” says Lauzon.

the unique facility will set a benchmark

for organic waste processing in north

america.


Roofing

Common Hazardous Roofing Materials By MOnty KleIn

there was a time when construction was not that concerned about hazardous materials. In roofing, we installed ma-terials that were available and popular

at the time, despite what they contained. Roofing today is far more sensitive to hazard-

ous materials and those nasty materials of old are no longer installed in roofing assemblies. Today’s stakeholders are trained to deal with hazardous materials when encountered in an old roof.

In this article we’ll have a quick look at the two most common hazardous materials associ-ated with older roofs: asbestos and lead paint. There is another old roofing material, Phenolic Insulation, making its debut on the scene too.

AsbestosAsbestos can be found in some old roofing ma-terials like felts, mastics, caulking, vapour retard-ers, adhesives, underlays, imitation slate prod-ucts and in rare cases, asphalt shingles.

The asbestos fibres were used as reinforcement and the danger when handling it is related to its “friability”. Any activity that results in airborne asbestos fibres is considered dangerous. Many of the old roofing materials encapsulated the fibres in asphalt, mastic or sealant and are not as prone to releasing fibres when handled. Thus, proce-dures for reroofing are generally rated as mod-erate risk. Worker protection when handling as-bestos containing materials (ACM) is the same for both moderate and high risk activities, the difference generally being that moderate risk can be done in the “open” while high risk is done “in-side” sealed enclosures.

Generally any roof that was installed prior to 1982 has the potential to contain asbestos. But it’s tricky and the date alone is not a reliable gauge. ACMs were not restricted to commercial or industrial roofing projects. Another twist is the possibility for an old roof to be asbestos free only to have it hidden in the mastics that were used under flanges of roof penetration flashings. It is not easy to identify — it takes a trained eye, familiarity with products from the past and lab testing to confirm the presence of ACM in a roofing assembly.

The added impact to a project containing as-bestos can be substantial and will slow down pro-duction, extend schedules, push out completion dates and drive up costs. Unfortunately this can be unnecessarily complicated when an entire proj-ect is declared “hot” just because one component (like mastic under a flange) contains asbestos.

Most roofing contractors are not equipped to deal with abatement in-house. As a result dedi-cated hazmat demolition companies are com-monly brought in to remove ACM for the roof-ers. This can become logistical hell as two trades, with differing ideas about production and keep-ing a building watertight, try to work together.

Lead PaintPaint containing lead is not new, but is impact-ing reroofing work. While it is generally thought that buildings built prior to 1978 may contain lead paint it is possible for lead to be present in exterior paint up to the late 1990s. Lead paint issues are usually associated where roofing inter-faces with other building finishes.

A good example would be a sloped roof where the wood siding on an adjoining wall needs to be cut to install new step flashings. If lead is pres-ent any action that could cause dust like cutting, sanding, grinding or drilling will trigger the need for proper abatement measures.

Like asbestos, the only way to positively iden-tify the presence of lead is to take samples in for lab testing. Lead paint could be on window frames/sills, building trims/finishes, handrails or anything that may have been post painted.

Phenolic InsulationThose familiar with today’s rigid roof insulations may remember back between 1980 and 1993 when phenolic insulation was considered the high performance roofing insulation to use.

Phenloic (like today’s polyisocyanurate) is a rigid foam insulation with facers on both sides. While it was primarily aimed at “flat’ commer-cial type projects, it could be in any flat roof within the vintages stated. It could even lurk un-der sheet metal cladding.

Phenolic insulation can be corrosive when it gets wet. It can be safe inside a roofing assembly for years until there is a leak, but once it gets wet it can release an acid, which in extreme cases can corrode steel building elements it comes in con-tact with.

Risk to the building aside — what about workers that will be replacing this old roof ? It turns out that the dust resulting from removing a phenolic insulated roof can create that same acid inside a worker when breathed in or ingested. Currently there are no special precautions re-quired when replacing an old phenolic insulated roof, but that may change. Stakeholders and owners of older buildings with phenolic insu-lated roofs should brace themselves for a new hazardous material to deal with. While it is too early to know for sure — it looks like abatement procedures for phenolic insulation could be very similar to those for ACMs.

Phenolic roof insulation is difficult to identify and often mistaken for polyisocyanurate when encountered. Lab testing for phenolic is not as available as it is for asbestos.

Reroofing is not as simple as it once was and is full of twists, turns and hazards that must be identified and handled appropriately. Strive to align the project with the most trusted, experi-enced and well-rounded firms that can help to navigate the hazards we know about now and those that might be coming in the future.

Monty Klein, TQ, RRO, is director of roof-ing sciences at IRC Building Sciences Group. He recently merged his company with IRC.

Workers abating asbestos

roof membrane.


Roofing

testing of the roof system materials revealed asbestos in

the building felt and tiles

Commenced in 1889 (with many later additions) ‘the Cathedral’ is the old-est extant church in Vancouver. When the city adopted the Vancouver Heri-

tage Registry (now the Register) in 1986, Christ Church Cathedral (CCC) was listed in the ‘A’ category. Since 1979, much phased work has been done in preparation for the work which is currently underway — in accordance with a masterplan developed in 1995.

In 1998/99 exterior landscape & plaza im-provements (under the direction of Durante Kreuk Landscape Architecture) as well as stone façade upgrades were completed. Extensive in-terior work in the basement & Nave was com-pleted in 2003/04 reinforcing footings and foundations, adding shear walls and a new or-gan. In 2005/06 a new elevator was added at the northeast corner — providing the ‘final leg’ of the seismic tri-pod for the heritage structure.

In 2007 a roof condition assessment and re-port was completed by Wells Klein Consulting Group for the complete roof, including the pre-dominant ‘imitation slate tile’ — a composite material roofing product installed in the early 80s (and apparently no longer in production). Testing of the roof system materials revealed as-bestos in the building felt and tiles — requiring a prescribed systematic and controlled removal and disposal. The report noted: significant dete-rioration of the artificial slate product is visibly

evident and a general loss of mass — has oc-curred over the installed life span to date (due in large part to the extensive organic growth which had taken root). The report further projected the end of the effective life of the sloped roof products by 2014/15 (well short of the expected lifespan of the roof product).

The purpose of the current and final phase of the restoration then is to replace the roof (for critical weather protection, thermal and acous-tic upgrades) while completing the seismic dia-phragm — accepting the parameters of work-

ing on a designated ‘heritage’ building and the need to work closely with the City of Vancou-ver heritage planners under the purview of the Vancouver Heritage Commission. Proscenium has been working with CCC and construction managers Scott Construction Group for over a decade, with a great deal of input from the Iredale Group (the coordinating structural en-

gineer and lead consultant on previous restora-tion phases) and RJC, the structural engineer of record. Completion is expected by the sum-mer of 2016.

Guiding principles for the upgrades to the building have always been: acoustic improve-ments (to combat downtown traffice noise), heating and ventilation upgrades (to replace outmoded equipment that supports the acous-tic and comfort goals), and building safety (to protect and prolong the safe and continued use of the building with the introduction of seismic restraints plus the continuation of the sprinkler system coverage).

The roof rehabilitation and diaphragm up-grade is considered the final phase of a voluntary seismic upgrade — in accordance with the 1999 VBBL (an indication that this has been an exten-sive and coordinated work in progress). The con-ceptual design for the roof replacement began with previous phases of the work. Current work includes the removal of existing plank decking and replacement with layers of plywood sheath-ing. The integral strength of the plywood is aug-mented by the truss of low-profile HSS mem-bers fixed diagonally across the diaphragm and transfering loads to the concrete shear walls. The diaphragm is well anchored to the existing roof frame with closely spaced screws to wood joists (and to the more robust blocking) and lag screws to existing wood trusses. Dywidag — full height

A Historic Restorationthe final restoration phase of vancouver’s historic Christ Church Cathedral includes a major roof replacement. By rOn Clay


Roofing

threaded bar anchors have been drilled vertically into inconsistent stone walls and grouted with a polyester sleeve, positioned in key locations both to provide reinforcement to the stone walls and to provide anchorage points between the wood diaphragm and the stone walls.

A building of this age with its multiple ad-ditions and re-constructions is not without its share of ad-hoc construction. A good deal of time is spent reviewing the inconsistencies, and considering the options to fortify or to re-place — to mitigate the ‘apparent mistakes of the past’. Construction schedules and budgets are stretched especially when hazardous ma-terials are revealed to be more extensive than originally confirmed. Following a review with Heritage and weighing the constraints of the budget against the expectations of durability and design appropriateness — a commitment was made to approve a batten seam zinc roof. Made to last for generations (with a 50 year ma-terial warranty),maintenance free, durable and 100 per cent recyclable, zinc is a natural choice for a Heritage Cathedral as its appearance will patina over time to register the prevailing conditions. Much consideration, review and debate has gone into the retrofit roof construc-tion assembly, to produce a system that is both economical and effective at achieving the cur-rent ideals for envelope, thermal and acoustic performance. Existing 2x4 sleepers have been

replaced with 2x8’s providing the requisite depth of pocket for insulation and ventilation and the opportunity to level the roof plane for the application of the zinc alloy roofing system.

Perhaps a crowning feature of the current proj-ect is the addition of the highly anticipated bell-spire at the northeast corner of the Cathedral — (as originally envisioned) set atop the existing elevator core. This open glass and steel structure housing four electronically controlled and cus-tom cast bronze bells will be the last significant architectural addition to the project. Intended to register as a clearly modern addition to the heri-

tage building, and to celebrate the final phase of the restoration, the bell-spire was designed by Proscenium — with stained glass panels designed by Sarah Hall, a highly regarded glass artist who was selected following a juried design competi-tion. The title of Sarah’s design is “Welcoming Light” — recalling the “beacon on the hill” anal-ogy used to describe the Cathedral’s iconic profile in Vancouver’s historic cityscape.

Ron Clay, BA/BArch, MRAIC is associate and project architect at Proscenium Architec-ture and Interiors Inc.

Each construction project is unique. Your risk solutions should be too.CMW’s insurance solutions are built for you from the ground up by our experienced Risk Advisors. We are BC owned and operated, and know how to deliver what you want, and more importantly, what you need. Get the solution that’s right for you.

cmwinsurance.com 700 – 1901 Rosser Avenue, Burnaby, BC V5C 6R6

Talk to a CMW Risk Advisor today. Call 604 294 3301.


Roofing

Green Roofs for Stormwater ManagementBy Karen lIu

Green roofs, growing vegetation on roof-tops, offer multiple environmental, eco-logical and economic benefits to the ur-ban areas. The vegetative layers increase

the energy efficiency and extend the service life of the roofing system, thus lowering a building’s oper-ating costs. The rooftop landscape not only beauti-fies our skyline but also cleans the air and provides a safe habitat for birds and insects in the cities.

Green roofs are rapidly gaining popularity as a low impact development (LID) tool for storw-mater management. Much of the rain is absorbed by the planting layers instead of going into our stormwater infrastructure. In older cities such as Montreal and Halifax with combined storm and sanitary sewers, keeping the stormwater onsite can reduce water pollution downstream during heavy rain events.

How Green Roofs Mitigate Stormwater A green roof consists of several principle compo-nents: vegetation, growing medium, filter layer, drainage layer and root barrier. During a rainfall event, rain is intercepted by the plants before it reaches the growing medium, where much of it is infiltrated, absorbed and adsorbed. Excess water exits the filter layer into the drainage layer, flows along the roof membrane to the roof drains. The stored water is either used by the plants or re-turned to the atmosphere through evaporation.

Although a green roof cannot fully mimic natural catchment because of its limited soil profile and diversity of vegetation, nevertheless, it can minimize surface runoff and contribute positively to stormwater management. The wa-ter storage capacity of a green roof comes from various components in the assembly:

Vegetation Plants provide runoff mitigation by taking up water from the growing medium through their roots and releasing back to the atmosphere from their leaves thus “recharging” the green roof system’s water storage capacity for the next rain event.

While most plants take up and release water during daytime, succulent plants such as sedums can store water in their leaves, stems and roots and release it in the cooler time in the night, making them more heat and drought tolerant — characteristics that are particularly suited for survival on rooftops.

Growing medium Typical green roof media are higher in mineral aggregates and lower in organic matters (<25 per cent) compared to regular garden soils to maintain soil structure, and therefore performance over the long term. Water is stored in the cavities of porous particles (e.g. lava, expanded clay), small capillary pores between them and the organic matter fraction.

Water retention layer Absorptive materials such as synthetic fleece and hygroscopic mat store water in the space between fibres. They are

highly effective in storing water (holding up to eight times their weight in water) compared to growing medium on a per-unit-weight basis. At the same time, they are permeable so they do not become waterlogged or promote root rot.

Drainage Some geo-composites consist of a 3D drainage core bonded to a synthetic fleece that stores water and releases it to the growing medium. Some drainage panels are molded into “cups” to act as water reservoirs to provide both drainage and water retention functions. Open pore aggregates, such as expanded clay, can also provide both drainage and water storage but they can also add considerable weight on the roof.

Design Considerations Soil absorbs and stores water so it is intuitive to increase the growing medium depth in order to enhance the water retention capacity of a green roof. Note, however, that not all growing media are created equal. Depending on the composi-tion (e.g. organic contents), the water retention capacity of typical growing media vary from 40 to 65 volume per cent, which can considerably affect the stormwater management potential of a green roof.

Growing medium is heavy when wet so its depth is limited by the roof ’s structural capac-ity. Innovative materials such as synthetic fleeces and hygroscopic mats offer lightweight alterna-tives to growing media as an effective water stor-

Seaforth Armoury,

Vancouver, B.C.

te

rr

y g

us

CO

tt/

Xe

rO

flO

r C

an

ad

a


Roofing

age on a per-unit-weight basis. By replacing all or part of the growing medium in a green roof with these materials, one can achieve equal or better water storage capacity while keeping the weight low.

The stormwater management potential of a green roof also depends on the rainfall pattern. The National Research Council Canada showed that a green roof with 150mm of growing me-dium in Ottawa retained 53 per cent of the an-nual rainfall while the British Colombia Insti-tute of Technology showed that a similar green roof in Vancouver retained only 29 per cent. The 150-mm-deep green roof was more effective in re-ducing runoff during infrequent heavy rain events between dry periods in Ottawa than the long pe-riods of continuous light rain in Vancouver.

Finally, more is not necessarily better when it comes to growing medium and stormwater man-agement. The British Colombia Institute of Tech-nology showed that the annual water retention capacity of two green roofs with 75 mm and 150 mm of growing medium was 26-29 per cent, es-sentially the same within experimental error. The continuous rain over a long period in the winter saturated both roofs, making one with shallow medium performed just as well as the deeper one.

SummaryThere is no one-size-fits-all green roof solution. The green roof system must be designed and

optimized for the local climate to achieve ef-fective stormwater management function. Ad-vances in green roof technology have provided designers with many options to increase water storage capacity of green roofs. These offer op-portunities in greening lightweight structures that would otherwise not be possible with tra-ditional growing-medium-based systems.

Dr. Karen Liu, PhD, is the product manager for Bonar Xeroflor. She has been conducting green roof research since 2000 when she was a research officer at the National Research Council (NRC) in Ottawa, and led the green roof research team at BCIT in Vancouver. For more info: [email protected] or [email protected]

ForumLEADERSHIP

2016 Construction

The VRCA is thrilled to present the 2016 Construction Leadership Forum. Designed for middle managers, the conference will address current issues, trends, best practices and equip delegates with tools to become well-rounded industry leaders.

This year’s program will include a variety of networking activities, engaging panel discussions on industry issues, and informative sessions on professional development, productivity, and safety.

Featuring Keynote Speaker David Chilton, former “Dragon” on CBC TV’s Dragons’ Den and bestselling author of The Wealthy Barber.

May 6-7, 2016Fairmont Chateau Whistler

Building Tomorrow’s Leaders

Register now at www.vrca.bc.ca/conference to get the Early Bird rate!

Presenting Sponsor:Sponsorship opportunities available! For more information, please contact Jennifer Jones, Education & Events Project Manager, at [email protected].

Principal components

of a green roof.

Xe

rO

flO

r C

an

ad

a


Infrastructure

Reliable water, sewer and storm water systems are essential to public health, a clean environment and a strong econ-omy. But British Columbia’s systems

may be at risk — aging infrastructure, growth, strengthened regulations, seismic risk, and cli-mate change are driving the need for significant upgrades and re-investment in the pipes, pumps and equipment that are used to treat, deliver and safely remove water for homes and businesses. At the same time, fiscal restraint and public compla-cency impede the ability of local governments and water utilities to secure the financial resources re-quired to sustain water infrastructure assets.

In 2015, the BC Water & Waste Associa-tion (BCWWA), together with Urban Systems, produced the research report, Are our Water Systems at Risk? to assess the financial capacity of B.C.’s local governments to maintain, renew and replace the existing water and wastewater infrastructure. The report points to four main concerns about the financial sustainability of the water and wastewater systems.

1. Water and sewer fees are not covering the full cost of services in many communities. To be financially sustainable, the revenues earned by a water or sewer system should cover the full cost of operating and maintaining the system, as well as the eventual replacement of the system as it comes to the end of its useful life.

While some communities are financially well positioned to meet current and future service needs, water and sewer rates in the majority of B.C. municipalities do not generate sufficient revenues from fees to pay for the full cost of pro-viding services. In order to reach full cost pric-ing in the worst cases, rates would need to nearly double to reach financial sustainability.

2. Communities are vulnerable. The major-ity of B.C. municipalities have not set aside suf-ficient reserve savings to provide a buffer against

unexpected changes in water or sewer system op-erating costs or revenues. This means that some communities are vulnerable to unanticipated events, like sudden equipment failure or the im-pact of severe storm or seismic events that dam-age water or wastewater systems, which could cause unbudgeted expenses, loss of revenues, or sudden rate increases.

While emergency borrowing mechanisms ex-ist for municipalities, they take time to imple-ment, which means there could be reduced service levels or delays in re-instating services following an unexpected change.

Smaller systems have greater financial gaps. Smaller communities (with a population less than 10,000) have greater financial sustainability gaps in their water and wastewater systems than larger communities. Water and wastewater systems are capital-intensive; smaller communities do not have the benefit of “economies of scale”, and so the costs of their systems are shared across a smaller base of users, which impacts their financial capacity.

3. Investment is required. As water and waste-water systems approach the end of their useful life, investment will be required to renew and replace the current infrastructure. Approximately $13 billion would be required in B.C. in order to address the shortfall in current reserve savings. To ensure an appropriate level of funding will be available when required, B.C. communities need to have pro-active long-range plans that address their infrastructure renewal and replacement needs. The estimated $13 billion investment does not include new infrastructure that may be need-ed to accommodate growing communities, or up-grades that communities may need to undertake to meet regulatory change, or upgrades to address resiliency for climate change or seismic events.

4. The Role for the Construction Industry. The scale and scope of the investment needed in the next decade(s) create significant opportuni-

ties for the construction industry. The renewal of water and sewer infrastructure within an urban environment is an area of construction that is ripe for innovation and new approaches. Replac-ing pipes that lay beneath busy roads, and pro-vide vital services that can only be interrupted for brief periods, creates significant challenges. Those construction firms that are able to pioneer new approaches and technologies that reduce the disruption to municipal services and reduce overall costs will prosper.

Compounding the technical challenges, there are also financial issues to overcome. Municipal budgets are stretched and staff capacity is lim-ited. As a result, there will be opportunities for construction firms that are adaptable to project delivery approaches that involve partnerships and longer term business arrangements. Munici-palities will increasingly be seeking expanded service offerings and more “turn-key” solutions that leverage the management and business ex-pertise of their business partners.

In addition to the financial constraints of lo-cal governments, there are also staff capacity con-straints. Local government managers and profes-sionals are burdened with a widely diverse set of issues to manage. To have deep expertise in infra-structure renewal and the latest construction tech-niques will be challenging. Therefore, construction firms with expanded service offerings such as in-spection, planning and program design will be well positioned. Developing relationships and partner-ships with other firms that can help expand the service offering will also prove to be advantageous.

It is possible to meet water infrastructure needs for this generation and the generations that fol-low. Municipalities can make sound choices today about priorities for existing tax dollars and set-ting user rates that cover the full cost of operat-ing, maintaining and replacing systems. B.C. is fortunate to be home to a thriving construction industry comprised of skilled and talented con-struction professionals and tradespeople. Col-laboration and forward thinking on behalf of the construction industry will be needed to ensure water and wastewater systems continue to protect public health and the environment and contrib-ute to economic development in the province.

John Weninger is a principal at Urban Sys-tems and former chair of the BC Water & Waste Association (BCWWA) Infrastructure Management Technical Advisory Committee. As a consultant for municipalities, he regu-larly applies his deep experience in asset man-agement and financial policy to help support thriving communities. The full report can be found at bcwwa.org

Are B.C. Water Systems at Risk?Opportunities for B.C.’s construction industry. By JOHn WenInger


Efficient, Modern Transportation Infrastructure good transit vs. an efficient transportation network By JaCK davIdsOn

It is not uncommon to hear about the techno-logical revolution that is currently occurring and its impact on various elements of trans-portation — from driverless vehicles to real

time traffic monitoring/control, technology is evolving. The important question is if transpor-tation networks will continue to evolve to meet the growing and changing demands of it users.

While it is easy to argue the importance of getting cars off the road to assist in the reduc-tion of greenhouse gas emissions, let’s be realis-tic. Metro Vancouver and many other regions in British Columbia are preparing themselves for significant growth over the next few decades. With the increase in population, will come an increase in traffic and the greater need for the efficient movement of people, goods and ser-vices. While ideally, some of this growth can be absorbed through improved and increased usage of transit services, the demand for im-proved roads, bridges and other transportation infrastructure will undoubtedly continue to increase.

Over the years, it seems that we have fallen into a bit of a conundrum in regard to the be-lief that as vehicle travel becomes more efficient, transit becomes less appealing. However, there should be a clear distinction between transit us-age and infrastructure development.

In many cases, the decision of whether to use transit to commute on a daily basis is an easy one for individuals. Depending on convenience, costs and time, the decision is made for us, while there is a very small percentage of people who

have the luxury of driving versus taking transit both being viable options.

Personally, I commute on a daily basis from my home in the Fraser Valley to our association office in South Burnaby. I have been making this commute everyday for over 16 years. On average it takes me about an hour and fifteen minutes each way (i.e. 65 kilometres). If I attempted to take transit, it would likely take me anywhere from 2-3 hours and I would have to make up to six transfers, and mine is not an extreme ex-ample. Unfortunately, for many commuters who must travel across regions, transit is currently not a viable or realistic option. No matter the logis-tics of the commute, it often takes transit users double the amount of time to make a trip, and that’s extra time away from their families — a sacrifice people are not willing to make.

For many years, TransLink has struggled to increase ridership and been unable to focus on its mandate, and some, including former CEO Doug Allen, having indicated that this is because it has been pre-occupied with attempting to deal with necessary road and bridge improvements. The Mayors’ Council unsuccessfully attempted to get the transit referendum approved in 2015 so funding would be in place to deal with im-proving transit and the transportation network. British Columbians agree that improvements need to be made — however by unfortunately combining the mutually exclusive concepts of improving transit and transportation infrastruc-ture, the need for both became lost in transla-tion, and British Columbians voted ‘no’ because

many believe TransLink already receives enough funding for transit initiatives.

In order to move forward in a productive way, it is important that people recognize the clear distinction between an efficient, well-function-ing transit system and necessary improvements to the province’s transportation network includ-ing roadways, highways and bridges.

Efficient, modern, core transportation infra-structure is essential because it is the key foun-dation of a strong economy — nothing moves until roads are built. Strategic investment in core transportation infrastructure supports a growing economy by making our businesses more com-petitive. When companies are successful, they create jobs and prosperity. A strong economy allows government to deliver important services such as healthcare, education and social services.

So while we continue to embrace new technolo-gies and innovation, one thing will always remain the same — and that is the need for an efficient transportation network that supports commerce and trade. How this network is supported in the future — whether it be through road/bridge toll-ing, dynamic pricing or the status quo — will be part of a bigger systematic revolution.

Jack Davidson is president of the BC Road Builders & Heavy Construction Association which represents more than 250 firms involved in grading, asphalt and concrete manufactur-ing, paving, utility construction, road and bridge building/maintenance, blasting, as well as related goods and services suppliers.

Infrastructure


BRIdGES ANd StRUCtURESCoquitlam Ridge Constructors

Road 40 — Apple Springs Bluff Bridge

The $386,000 contract involved constructing a new two-lane 17.5-metre-long bridge to replace the existing structure on Lillooet/Pioneer Road 40, which forms a crucial link between the communities of Lillooet and Gold Bridge.

Infrastructure

Contractor of the Year Awardsthe 13th annual deputy Minister’s Contractor of the year awards were handed out by the B.C. Ministry of transportation and Infrastruture during the B.C. road Builders and Heavy Construction association agM on december 4, 2015.

the deputy Minister’s Contractor of the year awards recognize construction and maintenance companies demonstrating excellence in the categories of grading, paving, bridges and structures, safety innovation, and highway maintenance work throughout the province.

PAvING Selkirk Paving of Crescent Valley

Highway 3 Bombi Junction to Nelway Junction resurfacing project

The $4.8 million contract included paving 26 kilometres of Highway 3 and five kilometres of side roads, as well as paving municipal roads in partner-ship with the villages of Fruitvale and Salmo.

SAfEtY INNovAtIoNBA Blacktop Ltd. of North Vancouver

Quick Response Safety HUB.

It links their safety policies and procedures to smartphones via Quick Response (QR) codes.

GRAdINGCantex-Okanagan Construction Ltd.

Highway 97, 74 Mile to 76 Mile Four Laning.

This $7.8 million contract involved widening 4.5 kilometres of Highway 97, as part of the $200 million investment into Phase 2 of the Cariboo Connector Upgrade Project

RoAd ANd BRIdGE MAINtENANCEVSA Highway Maintenance Ltd.

Service Area 14 — Nicola

For their continued focus on building relationships within the local com-munities including excellent communication with the public and key stake-holders.

1www.bccassn.com

2016BC CONSTRUCTION INDUSTRY SURVEY

VAN

CO

UVE

R IS

LAN

D/C

OAS

TM

AIN

LAN

D/S

OU

THW

EST

THO

MPS

ON

-OKA

NAG

ANKO

OTE

NAY

CAR

IBO

ON

ORT

H C

OAS

TN

ECH

AKO

NO

RTH

EAST

PRESENTED BY:

REALITY CHEQUETRADES WAGES & SALARIES SPECIAL EDITION

Industry insights from 900 construction employers and tradespeople.

1www.bccassn.com

2016BC CONSTRUCTION INDUSTRY SURVEY

VAN

CO

UVE

R IS

LAN

D/C

OAS

TM

AIN

LAN

D/S

OU

THW

EST

THO

MPS

ON

-OKA

NAG

ANKO

OTE

NAY

CAR

IBO

ON

ORT

H C

OAS

TN

ECH

AKO

NO

RTH

EAST

PRESENTED BY:

REALITY CHEQUETRADES WAGES & SALARIES SPECIAL EDITION

Industry insights from 900 construction employers and tradespeople.

BC CONSTRUCTION INDUSTRY SURVEY

2 3

2016

www.bccassn.com

If you’ve been paying attention – and I know you have – you know that the competition for skilled workers in BC can be intense. Supply is often tight. Our data tells us that 94% of BC’s construction employers are planning to hire this year.

The new Buildforce report predicts a skilled trades shortage of approximately 15,000 workers over the next 8 years.

Economics 101 says when there’s not enough supply prices go up. But do they? If you’re a construction employer putting a project or operational budget together, margins are small and salary increases might not be on the cards.

With the changes in global oil prices Alberta’s workforce is shifting westward, which is good news for BC’s shortages. But don’t be complacent: we’re still facing too many retirements to keep our skilled labour pool at appropriate levels.

BCCA, CLR, PCA, and Construction Business Magazine teamed up on behalf of the construction sector. We surveyed our combined membership and subscriber base to get the facts on trades wages and salaries. An impressive 900 respondents – all of them BC construction employers or skilled workers – answered straightforward questions about compensation and work. The big picture results are published here, and a more comprehensive regional breakdown of salary data can be found at www.bccassn.com

We hope you will find this information helpful to your skilled workforce planning.

Sincerely, Manley McLachlanBCCA President

Do you know what your competitors are paying their skilled tradespeople?

// Manley McLachlan, President (BCCA)

RESPONDENT OVERVIEW

Company Size by Employee Company Size by Annual Revenue

SURVEY RESPONDENTS provided information from all seven development regions of British Columbia. Employers made up 55% of respondents, and tradespeople 45%.

Union and Non-Union23% of respondents worked in a unionized environment, while 77% were non-union.

INTRODUCTION

25%

21%

15%

11%

10%

2%6%

8%

<$500k $500k - 2M $2M - 10M >$10M

27%

32%

27%

14%

Location of Respondents’ Head Offices

Top Trades Employed (in order)CarpentryElectricalPlumbingWeldingHeavy Equipment OperationRoofingConstruction Craft WorkMetal FabricationGlazingCabinet MakingSheet Metal WorkPaintingMechanical

RESPONDENT OVERVIEW

The BC Construction Association represents roughly 2,000 organizations active in the province’s industrial, commercial and institutional construction sectors. Working to foster an economic and political climate which will promote growth, competition and success for our industry, the BCCA is your provincial advocate and provider of strong support programs to support BC construction businesses of all sizes.

Construction Business Magazine provides an important vehicle for the exchange of knowledge and ideas in western Canada’s construction sector: information critical to the public and private sectors as BC gears up in this new economy.

Construction Labour Relations Association of BC was established in 1969 with the objective of bringing labour relations stability and security to contractors in BC’s unionized construction sector. Today, CLR continues to provide a unified voice that is essential to negotiating the most favourable agreements for its members and the industry.

Progressive Contractors Association of Canada represents and supports progressive unionized employers in Canada’s construction industry. PCA provides advocacy, labour-management advice, networking opportunities, and organizational services to its member community.

Of particular relevance to the skilled workforce issue is the Skilled Trades Employment Program (STEP). There are 12 STEP offices across BC ready to help construction employers source the skilled workers they need. Contact STEP today via the website: www.stepbc.ca

Whatever your company size, BCCA has a benefits package that will work for you. EBP is a not-for-profit plan governed by the BCCA Employee Benefit Trust, a volunteer body of industry leaders.

Less than 5 5 - 20 21 - 50 51 - 100 More than 100

15%

33%

26%

15%

11%


4 5

2016

www.bccassn.com

ON EMPLOYERSON SKILLED TRADESPEOPLE

SKILLED TRADESPEOPLE EMPLOYERS

Most Respondents are

Skilled workers are the backbone of the industry, and tight supply is making it a worker’s market. With skills gap forecasts still hovering around 15,000 people, employers need to focus on retaining the talent they have. Surprisingly, survey results show that small employers are doing the best job keeping their workers despite offering lower wages and fewer benefits.

Full Time (93%)

Year-Round (77%)

Open Shop (83%)

Overtime (60%)

Male (85%)

Apprentices (63%)

Journeypersons (26%)

Happy with wages (85%)

88% feel they are fairly compensated for their work

Entry Level Worker

28% are in the process of getting their credentials

They work

Motivated and Career Focused

Most Likely To...

Switch employers

44% received a raise in the past year

94% are working full time

Most Likely To...

30% received a raise in the past year

97% are working full time

Most Likely To...

Apprentice Journeyperson

71% of female respondents were apprentices and 7% were journeypersons. Women are entering the construction workforce and willing to start as apprentices to learn a trade. This is an important source of supply for all employers.

Most Respondents are

Apprentices (95%)

Journeypersons (92%)

And pay

More $ than last year (85%)

Medium Size (60%)

Open Shop (72%)

$0.5 - 10M (26%)

Working in 1+ Region

They hire

15% less likely to hire apprentices & journeypersons than larger companies

Small Companies

15% never require credentials

Most Likely To...

Keep their skilled workers

Most Likely To...

Support apprenticeship

69% offered raises last year

80% are paying for overtime

Most Likely To...

Lose employees due to pay

Medium Companies Large Companies

Employers can help retention by showing the wage potential with successive years of experience.

Working Hard and Moving Up Maxing Out

Size isn’t everything and neither is money. Employees from the largest employers are the most likely to leave their job due to wages. Successful retention requires a personal strategy for engaging talent to stay for reasons other than pay. (In our survey, a small employer is defined as having less than 5 employees, medium companies hire 5-99 employees, and large companies have 100 or more.)

A high percentage of non-unionized employers in all size categories offer health benefits and training supports. This shows that BC employers are investing in their workers as they compete to attract and retain workers.

Retention Leaders Apprenticeship Champions Big Spenders

BC Employers are hiring workers from Alberta, with large companies leading the way at 75% and medium companies not far behind at 40%.

99% offer full time work

89% offer benefits

Switch trades Switch regions for work


6 7

2016

www.bccassn.com

TRADE WAGES

Manley McLachlanPresident, BCCA

“Just because it seems obvious doesn’t mean you’re doing it. Take some time to digest this information. Success depends on it.”

Clyde ScollanPresident, CLRA-BC

“Review your wages against the averages, know where you stand, and then step forward.”

Keri MillerMember Services, PCA

“Understanding what motivates this unique workforce is the key to a strong sector and a strong economy.”

1. RETENTION IS ABOUT MORE THAN JUST MONEYBenefits & Company Culture

The amount you pay your tradespeople is one way employers stay competitive and retain top talent - but it’s about more than that. The highest paid respondents were most likely to change jobs. Small employers have the retention advantage.

2. EXPERIENCED PEOPLE ARE YOUR MOST VALUABLE ASSETSMake sure you retain your top talent

Skilled workers with more than 10 years of experience are much more mobile than other workers. These experienced workers understand their value and are making sure they get their dues.

3. LOOKING TO NEW TALENT POOLS IS GOOD BUSINESSThe women are gearing up and Albertans are coming home

Women are apprenticing. Their training is supported and funded. They want to work. British Columbians are moving home from Alberta and they have the experience that BC employers need.

The culture shift is underway.

TRADE WAGES 2016

IF YOU REMEMBER ANYTHING...INSIGHTS & ACTIONS

Krista BaxExecutive Director, APGST

“All data tells a story. Use it to your competitive advantage and to build the best team you can.”

< 1 Yr Exp 2-5 Yrs Exp 5-10 Yrs Exp > 10 Yrs ExpAsphalt Paving $20.83 $23.50 $31.50 $32.83Boilermaker $24.50 $29.00 $38.00 $39.00Bricklayer/Mason $18.83 $28.83 $33.50 $31.00Cabinet Maker $15.40 $18.77 $24.80 $28.08Carpenter $17.16 $21.94 $27.73 $31.69Concrete Finisher $17.00 $25.00 $29.50 $35.90Const. Craft Worker $18.79 $20.50 $27.75 $32.71Diesel Engine Mech. $23.00 $28.75 $32.59 $33.28Drywall Finisher $20.50 $25.50 $30.50 $34.50Electrician $18.26 $26.10 $33.10 $36.74Floor Covering Installer $23.50 $27.65 $38.17 $35.65Glaziers $16.32 $22.05 $26.68 $29.32HEO $21.24 $25.72 $28.89 $32.81 Horticulturist $13.50 $17.50 $20.50 $25.00 Millwright $22.90 $26.50 $31.83 $35.83 Instrumentation & Ctrl Tech $19.25 $28.90 $34.00 $35.75 Insulator $16.50 $26.17 $28.50 $26.50 Ironworker - Generalist $20.50 $21.83 $24.83 $41.33 Ironworker - Reinforcing $18.50 $28.00 $36.17 $38.50 Lather $18.50 $23.83 $32.17 $33.83 Log Builder $17.00 $17.50 $21.83 $23.17Logistics & Distribution $18.25 $25.50 $44.50 $35.50Metal Fabricator $19.50 $24.50 $29.50 $31.96Painter & Decorator $16.17 $20.83 $25.94 $29.38Parts & Warehouse $19.75 $23.64 $27.00 $31.00Petro Equip Installer $16.50 $20.00 $27.50 $29.00Plumber $16.98 $24.89 $31.57 $34.50Refridge & AC Mech $19.17 $34.00 $41.83 $44.50Residential Building Worker $20.50 $22.00 $24.00 $26.50Roofer $17.17 $21.23 $26.90 $30.58Sheet Metal Worker $16.25 $24.50 $32.38 $35.40Steamfitter/Pipefitter $21.70 $27.17 $37.10 $41.10Tilesetter $18.25 $26.25 $30.00 $35.50Welder $18.58 $24.54 $28.98 $32.24

CONTRIBUTORS

Employers of all sizes agree: unrealistic wage expectations can be an occupational hazard. Nearly 40% say some workers could use a “Reality Cheque”. Here it is:

Wages in this table reflect information provided by survey respondents. It is meant to be used as a guideline only. Statistical relevance of each category will vary, dependant on number of survey respondents contributing.


8

2016

JANUARY 2016

$56,170Average annual salary of a BC construction industry worker

1/70BC high school students goes directly into construction trades

94%BC construction companies planning to hire in 2015

92%BC construction companies with less than 20 employees

3.4%Unemployment in BC’s construction sector

45%of employers hired a worker that came directly from working in Alberta’s oil and gas sector

3.4%

5.8% (All Sectors)215,000Number of employees in BC’s construction sector

help wanted

2/3Workers in BC’s skilled trades are over the age of 45

For more insight, visit us at

www.bccassn.com

13% increase from 2011 1% increase from 2014 45% lower than BC average

41% decrease from 2014 New statisticNo change since 2014

1% decrease from 201415% increase from 2014 No change since 2014

$296BAvailable capital cost of proposed construction projects in BC

Last 3 Years

$26B increase from 2014

8.1%Contribution by the construction industry to BC’s GDP


$16.5B

$81.7BValue of current construction projects in BC

Consistent with 2015

15,000Number of construction jobs in BC that will be unfilled due to labour shortages by 2024


As a smaller guy, Gretzky played an exciting brand of hockey. Creative and fast, he took the game to a new level. The only reason he could play

this way, in fact, the main reason he played his game so successfully was because the referees didn’t allow the big guys to use their size to force him out. Without consistently enforced rules, the game would be a slow, low quality and bor-ing event. More importantly, without clear rules and fair referees, most of us either couldn’t, or wouldn’t, play the game at all, talented or not.

No doubt there was a time in construction procurement when there were few rules and weak enforcement. (I imagine it was an era when many small and mid-sized, smart, hardwork-ing contractors were crushed and forced off the ice by the big guys). This gave rise to construc-tion associations like the CCA, the VRCA and ICBA, government / construction industry co-operation as well as bonding and standard setting bodies such as CCDC. As a result, the industry is now reasonably competitive, efficient and innovative.

When private money is being invested into a construction project, the project owners and lenders have the freedom to contract with any-one they prefer and in whatever contract form they choose. When it comes to government funded projects however, it is critical that pro-curement be open, fair, objective and transpar-ent. Every qualified contractor has a right to compete for this work. Without rules, standards and fair play, there would be very few contrac-tors and public construction would be expen-sive. If we want a healthy industry — one that is

competitive, efficient, innovative and self renew-ing, there is really no other option.

In recent years standards and transparency appear to be fading in the name of collabora-tion and innovation. As an example, under the CCDC 2 contract, insurance requirements are clearly spelled out. They reference CCDC 41, which in turn references IBC Form 2100, 4042, 4047 and 2320. These standards came about through many years of national collaboration between all stakeholders including contractors, insurers and owners. The result is a fair approach where the rules of the game are clear and each

stakeholder understands their insurance cover-age. Everybody wins.

Often, this entire insurance section is now re-moved from the standard CCDC contract. Re-vised insurance requirements are reinserted by way of the supplementary general conditions. Occa-sionally, the new insurance requirements omit key coverage items. Insurance companies, if not bound by the CCDC standard requirement, might issue a “lightweight” wording that reduces coverage. Often this is cheaper for the party assigned in the contract to arrange the project insurance. Riskier

sub-trades are sometimes identified and large de-ductibles can be imposed on them to reduce the insurance company risk or the insurance cost. This approach can effectively remove the project insur-ance protection for the sub-trade completely.

When it comes to insurance, the devil is in details. Sometimes, the actual policy wording is not even available for the general contractor and sub-trades to review (a contractual right under the old CCDC 41 standard). Depending on the project, departing from the CCDC standard insurance requirements can be enormously ex-pensive. If you want to delve into this, do some reading on resultant damage clauses in project insurance policies. Sadly, most who are involved, from the inexperienced insurance broker to the project owner to the sub-trade, may not know that their coverage has been gutted until they try to claim on the policy.

Government owners often believe that by changing the standards and customizing the ap-proach, they are transferring risk to those who are best able to address this risk. What happens more often is that the risk is forced onto either the weakest or the least sophisticated contractor in the construction chain. One of the leading construction lawyers has said that no contractor is forced to sign these onerous contracts. “If you don’t want to take on the risk, then don’t sign the contract.” As most of us know, this approach is not only callous, it is also unrealistic. It’s not easy to walk away from work over an insurance clause or contract language issue when the com-pany has employees who need to work and over-head costs that must be paid.

As a construction broker (basically an out-sourced risk manager), my role is to protect my cli-ents from weak contract language and inadequate insurance and bonding protection wherever pos-sible. The current government procurement en-vironment makes this very challenging. Industry procurement standards have been created with much work and collaboration among all stake-holders. When public owners vary from the agreed upon standards, risk increases. Competition and innovation declines. Everybody loses. Regardless of political philosophy, governments at all levels must re-embrace the principles of objectivity, openness, transparency and accountability. We need govern-ment procurement models that promote competi-tion. Otherwise, we are destined for an industry that is big, slow and expensive. And if there is a Gretzky among us, do we really want him sitting on the bench taping sticks and folding towels?

Steve McConnell is client executive, vice president at CMW Insurance Services Ltd.

Project Insurance Risks Insurance requirements for government funded projects increase risks for contractors. By steve MCCOnnell

Bonding & Insurance

...standards and transparency appear

to be fading in the name of collaboration and

innovation.


8

2016

JANUARY 2016

$56,170Average annual salary of a BC construction industry worker

1/70BC high school students goes directly into construction trades

94%BC construction companies planning to hire in 2015

92%BC construction companies with less than 20 employees

3.4%Unemployment in BC’s construction sector

45%of employers hired a worker that came directly from working in Alberta’s oil and gas sector

3.4%

5.8% (All Sectors)215,000Number of employees in BC’s construction sector

help wanted

2/3Workers in BC’s skilled trades are over the age of 45

For more insight, visit us at

www.bccassn.com

13% increase from 2011 1% increase from 2014 45% lower than BC average

41% decrease from 2014 New statisticNo change since 2014

1% decrease from 201415% increase from 2014 No change since 2014

$296BAvailable capital cost of proposed construction projects in BC

Last 3 Years


8.1%Contribution by the construction industry to BC’s GDP


$16.5B

$81.7BValue of current construction projects in BC

Consistent with 2015

15,000Number of construction jobs in BC that will be unfilled due to labour shortages by 2024


Bonding & Insurance

A common question asked by clients is what is bonding and why do they need it, when they have recently had an op-portunity to bid on a new project. One

of the requirements may be to provide a Perfor-mance Bond and/or Labour and Materials Bond.

There are many different types of bonds avail-able and they can broken up into two broad cat-egories: commercial bonds and contract bonds.

Commercial bonds refer to obligations typically required by law guaranteeing adher-ence with applicable regulations, statutes and building codes. Examples are licence/per-mit, court, judicial and miscellaneous bonds. Contract bonds provide financial and perfor-mance assurance that construction projects will be completed as per the agreed upon bid and con-tract requirements.

For the purposes of this article we will be re-ferring to contract bonds and not commercial bonds. This is also not to be confused with fidel-ity bonds, which provide insurance coverage for employee dishonesty and theft.

A common misconception is that a bond is like insurance. In actual fact it is not but rather pro-vides a financial guarantee to a third party should the contractor fail to meet its contractual obliga-tions. The difference is that the surety company

will recover from the contractor any amount they may be, in performance of the contract, required to pay on the contractor’s behalf; as they are only providing a financial guarantee of performance.

What a Surety Bond provides is a promise to pay one party (project owner), a certain amount if a second party, (the contractor) fails to meet some obligation, such as fulfilling the terms of a contract. The Surety bond protects the owner of

the project against losses resulting from the con-tractor’s failure to meet the obligation.

As part of the prequalification process to es-tablish a bond facility the surety company per-forms a detailed analysis of a contractor’s finan-cial strength and ability to complete projects at the proposed bid amounts. Many factors go into this analysis including evaluating the contractor’s experience, current workload, financial strength and liquidity. The term “we are fully insured and bonded” indicates to prospective clients that this company is established, stable and dependable.

Bonding Benefits What is bonding and why do contractors need it.By darryl WInd

The reason that a contractor might need bonding goes further than just meeting the re-quirements of a potential project contract. Once bonded, a company will be able to bid on proj-ects that previously they could not. They will also have an experienced ally in their insurance broker to work with them to help establish the amount of work they can take on given their fi-nancial abilities. A contractor will also have the peace of mind in knowing that a project they provide a bond for will have proper financing in place. As the surety company will often require confirmation that the project owner has the re-quired financing in place to finance the project.

With all of these benefits, the question really should be: “why aren’t more contractors bonded”? One reason is that it requires a contractor to invest in their company. If the company does not have sufficient liquid assets / working capital in their company they will not qualify for a bond facility. Establishing a bond facility is a great next step for a growing company and can help to open up new op-portunities for larger and more secure jobs. With all of this said it begs the question: “is it time for your company to consider bonding”?

Darryl Wind, CIP, CRM, is account execu-tive with Westland Insurance Group Ltd.

a common misconception is that a bond is like insurance.


The Four Pillars of Bonding By fred MOrOz

Bonds are legal documents and you can be deemed non-

compliant...if they are not executed

correctly.

Bonding & Insurance

Using an analogy that all contractors understand, a bonding facility is held up by four key pillars. All are impor-tant, and the strength of one relies on

the strength of the others. If one or more of the pillars are weakened, it adds stress to the other pillars.

The pillars are not the things that a com-pany brings to the table. All sureties base their primary support on a company’s proven track record of successfully completed contracts, man-agement of large work programs and strong fi-nancial statements. But those are factual things about the company.

The four pillars are things that the bonding company and bond broker provide to you. They are things that you can negotiate to benefit you and your company. But like pillars holding up a building, if you take from one pillar, it affects the strength of the other pillars.

The first pillar is Bond Limits. This is the size of the contracts and total work program that your bonding company is willing to sup-port. Some contractors do not need large bond limits, and some contractors are always pushing for higher bond limits. But for all contractors, it is the reason that you have a bonding facility. You need them to provide you with the bonds for the size of contracts that you need and want to perform.

The second pillar is Indemnities and Guar-antees. This is the security that the bonding company holds that backs the bonds that they is-sue. With an un-bonded contract, only the sign-ing company can be sued under contract law for breach of contract. If your surety pays out on a bond claim for non-performance on one of your

bonded contracts, they have legal recourse to go after any and all indemnitors that are on your Indemnity Agreement. This includes personal assets as well as corporate. The indemnities that you provide can be negotiable, but they affect the other pillars.

The third pillar is the various Rates and Costs charged for your bonds and your bond facility. Your base rate is commonly called your “50/50 rate”. That is the cost as a percentage of the total

contract amount, for a 50 per cent performance bond and a 50 per cent labour and material pay-ment bond, which are the most commonly asked for bonds. But there are also additional charges for a 2nd year of warranty, long contract dura-tions, design-build contracts, etc. Low rates are better than higher rates. But what is more impor-tant than your absolute rate is your relative rate. Regardless of what your rate is, the key is having a rate the same as, or lower than the contractors that you are competing with.

The fourth pillar is Expertise, Advice, Ser-vice and Execution. These are the less tangible things that are sometimes overlooked. But they shouldn’t be. An experienced, profes-

sional bond broker that pairs you with a sup-portive surety can give you more benefits and advantages than the other pillars. Bonds are legal documents and you can be deemed non-compliant or put at higher risk if they are not executed correctly. Things like: reviewing con-tract documents and tender specs and giving advice; mitigating your risk on bond claims and liens; meeting last minute bond requests; deal-ing with difficult or unusual projects and think-ing outside the box to solve a problem. Plus, an established bond broker works with many con-tractors and can provide you with a wealth of construction market insight.

These are the four pillars holding up your bond facility. Each one is important. You want to maximize the benefits from each pillar for your company. But maximizing the benefits for your company from each pillar does not mean they are strong pillars. If you ask for a benefit for your company (from one of the pillars), that is a concession from the bonding company, and that weakens the pillar. As a result, they are less likely to concede on another pillar. If you negotiate the removal of indemnities from your indemnity agreement (second pillar), then the surety has less to rely on in a loss. Since they are in a riskier position they will provide a lower bond limit (first pillar). If you negotiate a very low rate, the surety will tighten bond limits and indemnities to put their risk-reward equation back in bal-ance. If you are relying on your surety and broker to support and advise you on difficult projects, this also alters the risk-reward balance and it will affect the other three pillars. If you weaken one pillar, the surety will need more strength from the other pillars.

By all means, get the most out of your bond-ing facility. But know the key components, the four pillars. Know that gaining benefits from one pillar will stress the other pillars. You might be surprised that some of the larger con-tractors do not have the lowest rates or least in-demnities. Some very large contractors require their surety to stretch to very high bond sup-port levels resulting in no leverage to negoti-ate lower rates or less indemnities. Conversely, some well established smaller companies with modest bond support needs can have low rates or very limited indemnities. Your specialized bond broker can help you get the right balance for your company.

Fred Moroz is vice president of construc-tion bonding, with BFL Canada Insurance Services.

P R O D U C E D B Y

BUILDEX is Canada’s largest group of tradeshows and conferences dedicated to the Construction, Architecture, Property Management and Interior Design industries

// More than 20,000 attendees annually// 800+ companies exhibit each year

buildexshows.com // 1.877.739.2112

@BUILDEXshows

M E D I A P A R T N E R S

NOVEMBER 9 & 10, 2016BMO CENTRE, STAMPEDE PARK

buildexcalgary.com

FALL 2016VANCOUVER CONVENTION CENTRE EAST BUILDING

buildexexpress.comWith over 4000 industry attendees and 250+ exhibits, this is Alberta’s largest industry event. 2016 exhibit space is now selling – ACT TODAY. Registration opens in September.

We look forward to seeing you in Vancouver. We expect over 13,500 attendees to join us again for 60+ seminars and over 150,000 sq. ft. of tradeshow � oor. If you work in the industry, you cannot a� ord to miss this event! Register today.

This one-day compact version of our BUILDEX brand will host 100+ exhibitors & sponsors who will enjoy a tradeshow focused on networking & education. This is a great opportunity to grow your business with 1500 local industry professionals.

FEBRUARY 24 & 25, 2016VANCOUVER CONVENTION CENTRE WEST

buildexvancouver.com

MARCH 15 & 16, 2016EDMONTON EXPO CENTRE, NORTHLANDS

buildexedmonton.comThe largest event of its kind in Edmonton, BUILDEX has become a must-attend trade show and conference for the Design, Construction and Property Management Industries. BUILDEX Edmonton is your gateway to the Northern Alberta market.

SUPPLIER OR EXHIBITOR? Secure your position at the 2016 show today!

Adam [email protected]

Michael [email protected]

SUPPLIER OR EXHIBITOR? Exhibit space and sponsorships are selling quickly, call today.


John [email protected]

SUPPLIER OR EXHIBITOR? Contact us today to secure your high-pro� le location.


John [email protected]

SUPPLIER OR EXHIBITOR? Act now to con� rm your booth location on the show� oor.


Adam [email protected]

buildex shows dps ad cb dq DEC.indd 1 2015-11-30 4:18 PM


Legal File

In November 2014, the Supreme Court of Canada in Bhasin v Hrynew gave poten-tially far-reaching new guidance in the area of good faith in contract law. Legal observ-

ers have been carefully watching since to see how much Bhasin will actually change the law. To this point, it appears that Canadian courts are apply-ing the judgment cautiously. However, the spe-cific new duty recognized in Bhasin — the duty of honest contractual performance — is one that parties to construction and all other contracts must take into account.

In Bhasin, Justice Cromwell described the ex-isting state of the law of good faith in Canada’s common law provinces as “piecemeal, unsettled and unclear”, out of step with the law in Quebec and the United States, and also out of step with the normal commercial expectations of most con-tracting parties — who reasonably expect a basic level of honesty and good faith in contractual deal-ings. He noted that there are specific types of situ-ations in which prior cases had developed stand-alone duties of good faith performance: where the parties must cooperate in order to achieve the objects of the contract, where one party exercises a discretionary power under a contract, and where one party seeks to evade contractual duties (in-cluding by taking steps to prevent performance of the contract). As will be seen below, recognition of these three categories has brought them to the forefront of good faith in contract law. All three of them reflect situations that arise from time to time in construction contracts.

While Justice Cromwell concluded that the court should not recognize a general duty of

good faith, he did conclude that there is a “gen-eral organizing principle” of good faith that un-derlies many facets of contract law. An organiz-ing principle is not a duty or rule to be applied in specific cases, rather it is a tool to assist courts in future cases in considering possible incremental changes to the law. Such incremental changes in law would also have to give weight to the impor-tance of certainty in commercial affairs and of allowing parties to order their affairs by entering into contracts, not to mention the reality that in commerce, a party may sometimes cause loss to another — even intentionally — in the legiti-mate pursuit of economic self-interest.

Applying this general organizing principle, Justice Cromwell recognized a new duty of honesty in contractual performance, explain-ing that “this means simply that parties must not lie or otherwise knowingly mislead each other about matters directly linked to the per-formance of the contract. This does not impose a duty of loyalty or of disclosure or require a party to forego advantages flowing from the contract, or to subordinate its interests to those of the other party; it is a simply requirement not to lie or mislead the other party about one’s contractual performance.”

To date, Canadian courts have been re-strained in their application of these new prin-ciples. In two cases involving governments who were aware of but failed to disclose potential claims by aboriginal groups, the courts have declined to extend the duty not to lie to a situa-tion where a party is aware of a material fact but fails to disclose it.

Several cases have picked up on the three sit-uations acknowledged in Bhasin as giving rise to previously-recognized duties of good faith. Park Avenue Flooring Inc v EllisDon Con-struction Services Inc was a dispute between a construction manager and a flooring subcon-tractor. The relationship became very strained, with the construction manager withholding recommendation of the subcontractor’s in-voices for payment, and allegations that the subcontractor’s relationship with its employees was interfered with. Justice McCarthy con-cluded that the defendant’s acts had prevented the plaintiff from performing the contract and awarded damages on that basis.

Greater Vancouver Sewerage District v Wastech Services arose from an arbitration award of damages arising from the District’s exercise of a contractual discretion to reduce Wastech’s allocation of waste. Wastech had sought to rely on the principles relating to bad faith in the exercise of a discretionary contrac-tual power. In her reasons granting leave to ap-peal the award, Justice Fitzpatrick confirmed the cautious approach taken by the courts to is-sues of good faith since Bhasin, reiterating the following caution from an Ontario judgment: “Bhasin is no authority for unbridled creativ-ity in the creation from whole cloth of obliga-tions in a contractual context which the parties have not provided for or have addressed in a fashion which one party regrets in hindsight. Good faith and honesty are the boundaries of the field on which the contractual relationship is negotiated and performed.”

On a careful reading, it is clear that Bhasin was not intended to radically transform the law of contract. Rather, it was intended to provide guidance in cases where further development of the law was appropriate. Courts have been cautious in applying Bhasin, and have not ac-tively developed new generally-applicable du-ties of good faith despite Bhasin recognizing their ability to do so. Parties to a contract con-tinue to be able in most cases to rely on the ex-press terms of the contract they bargained for. At the same time, parties to contracts must re-main cautious to ensure they are honest in com-munications they have with other contracting parties, and observe good faith in situations requiring cooperation to achieve contractual objects, the exercise of a discretionary power, and where their actions may prevent other par-ties from performing the contract.

Bill Veenstra practices in commercial and construction litigation at Jenkins Marzban Logan LLP.

Honest Contractual Performancegood faith — has the law really changed?By BIll veenstra

ADVERTISE IN MCABC PLUMBING & MECHANICAL AND LET US CONNECT YOUR PRODUCTS, EQUIPMENT AND SERVICES TO THE MECHANICAL CONTRACTING INDUSTRY As the Official publication of the Mechanical Contractors Association of BC, MCABC PLUMBING & MECHANICAL is the publication of choice by advertisers who want to reach the decision makers in the multi-million dollar Mechanical Contracting industry. To advertise your products, services and expertise or for more information on customizing an advertising program, please contact: Dan Gnocato, Publisher604.549.4521 ext. [email protected]

MCABCTHE OffICIAL PUbLICATION Of THE MECHANICAL CONTRACTORS ASSOCIATION Of bRITISH COLUMbIA

Plumbing & mechanical

36 construction business January/February 2016

Legal File

whereas traditional procurement commonly involves separate agreements between an owner and its design-builder and service

provider, a public-private partnership (P3) can offer a more integrated approach. A P3 project agreement between the procuring government authority and a project company often includes not only the design and construction of an infra-structure asset, but also its long-term operation and maintenance (O&M). By requiring a proj-ect company to take a holistic approach when pricing its solution, P3s incentivize the design-builder and service provider to work collab-oratively and create practical solutions to ensure that the overall project costs are competitive, during both the construction and operational phases of the project.

The integration of design, construction and O&M considerations can introduce complexity. In a P3 project, a project company’s obligations under the project agreement will generally be al-located between the design-builder and the ser-vice provider. As part of this process, clarifying the allocation of key risks and responsibilities as between the design-builder and service provider will be important. An interface agreement es-tablishes the foundation for this relationship by creating a direct contractual nexus between the design-builder and the service provider. How-ever, the design-builder and the service provider will each bring different expertise and expecta-tions to the negotiating table. Understanding the commercial expectations of each party may assist these negotiations.

Although each interface agreement must be tailored to suit the unique requirements

of each project, several issues are commonly discussed:

Design Collaboration: Changes in design and construction can affect the long-term costs of a project’s O&M. For example, a change to roof-ing design may reduce construction costs, but in-crease O&M costs over the project’s lifespan (e.g. heating, roof replacement). The service provider will typically want to be involved in key aspects of the design process so that it can manage these po-tential future costs. In contrast, the design-builder will typically wish to maintain design flexibility

and clearly articulate the level of service provider involvement in the design process.

Site Access and Control: The service provid-er may require site access prior to construction completion. In some cases, the service provider may also play a role in the commissioning of infrastructure components or other precondi-tions to substantial completion. When both (or multiple) subcontractors are working on-site, considerations arise as to which subcontractor has primary control over the site and whether site access by other subcontractors may interfere with construction activities. Generally, the ser-vice provider will seek ease of access and limited site responsibilities during any period of overlap between the construction and operations.

During the construction period, the design-builder will generally maintain primary control over the site and will therefore require that ser-vice provider personnel comply with its project safety plan and directions. Both parties will likely seek clarity regarding the risk allocation related to issues such as property damage, haz-ardous substances and personal injury.

Schedule Changes: Changes to the con-struction schedule may introduce additional costs for the service provider. Mobilization activities (e.g. hiring personnel, purchasing equipment, site orientation and move-in) are often time-cost sensitive. For example, if a ser-vice commencement date is delayed, the service provider may be liable for paying employees that do not yet have a facility to maintain. Al-ternatively, if construction is accelerated, the service provider may incur greater costs in ac-celerating the acquisition of materials and hir-ing personnel. A service provider may therefore want the interface agreement to address notice requirements related to schedule changes and, potentially, provide for compensation where such changes increase costs. The design-builder will typically seek to ensure the service provid-er mitigates those costs and that the interface agreement establishes timeframes during which no compensation would be payable.

Operating Period Deductions: Operating period payments may be subject to deductions if performance does not meet the project agree-ment requirements. Often, these deductions are passed down by a project company to the service provider. In some cases, deductions may be caused by defects or other failures of the de-sign-builder. The service provider may therefore require that the interface agreement permits re-covery of these amounts from the design-builder. The design-builder may seek to introduce notice requirements in relation to defects and deduc-tions, manageable warranty periods and an op-portunity to rectify any defects itself.

Liability Caps: The design-builder and ser-vice provider may use the interface agreement to establish limitations on the liabilities owed to the other subcontractor. These liability caps may be, but need not be, linked to the liability cap as between the subcontractors and the project company under the applicable subcontracts.

Successful P3 projects are built upon the col-laboration of the project team members. A thor-ough, fair interface agreement strengthens the foundation for these relationships.

Jennifer Chan is an associate, and Carrie Fleming and Anne Stewart are partners with Blake, Cassels & Graydon LLP in Vancouver.

Interface Agreementssetting the foundation for subcontractor relationshipsBy JennIfer CHan, CarrIe fleMIng and anne steWart

the integration of design, construction

and O&M considerations introduce complexity.


A Parametric Approach to ArchitectureBy Peter OsBOrne

Parametric modeling refers to the use of

parameters or variables that can be edited to manipulate an

end result.

Architect Corner

the story of Frank Lloyd Wright de-signing Fallingwater is said to have gone something like this:

“With a design deadline approach-ing and eager apprentices inquiring, Wright ap-parently does not work on the project. He waits until 2 hours before E.J.’s arrival at Taliesin to sit at the drafting table. With his stunned entou-rage watching, Wright calmly but swiftly drafts the complete design for the house in plans and sections on blank sheet in one sitting, barely fin-ishing in time for Kaufmann’s arrival. Wright de-signs a masterpiece of twentieth century archi-tecture in a bravura performance of drafting.”1

This is the type of story that permeates the ar-chitectural profession. It reflects the profession’s struggle with the promotion of the individual over the collective. It echoes the way we teach, award and inevitably practice architecture. Whether the story is true or not does not matter. It is the parable that architecture is produced by an individual that shaped the profession during the last century.

Current themes in architecture however have shifted the profession towards collaborative and integrated design processes. Evolving from a place of necessity as buildings have become increasingly complex with new technological, environmental and legal requirements. There is simply too much information for one person to process. The historic ideal of the individual over the collective no longer applies to modern construction.

Complex buildings require innovative de-signs and design processes. Traditional modes of representation no longer apply to new forms of collaborative thinking. Architects are trained at building digital models of our designs. Software,

like Trimble’s SketchUp, has allowed architects to construct virtual representations of buildings. Every aspect of the design can be explicitly mod-eled and detailed. During the design process op-tions can be explored, tested and modeled again. A parametric approach to design is different from this kind of conventional modeling.

Parametric modeling refers to the use of pa-rameters or variables that can be edited to ma-nipulate an end result. Aspects of the architec-ture (massing, skin, structure) can be linked to establish relationships between elements. This

involves using programs such as McNeel’s Grass-hopper, which utilizes algorithms to perform actions within a Rhinoceros 3D environment. Grasshopper’s strength is that the programming of the algorithms is through a visual interface and not traditional lines of coding. This facili-tates the rapid prototyping of designs that can generate data on various elements of the build-ing. This eliminates the cycle of re-modeling, and provides timely accurate information vital to collaborative design approaches.

Form-finding is one use for parametric model-ing but it can also be used to optimize certain de-sign aspects against a set of constraints or owner

criteria. Design constraints can be structural limitations, zoning regulations or pro-forma re-quirements. These constraints become a set of rules to which the design must conform.

GEC Architecture uses these tools as part of our design process. For example, in a mixed-use development we can describe buildings as a series of extruded rectangular forms with a specific net-to-gross efficiency that generates a unit mix. As we manipulate the floor plate size or tower heights a new unit mix is instan-taneously generated. Further constraints can be placed on the model such as maximum tower heights or overall site density. Now, as we shift density across the site by increasing one tower’s height other towers adjust never allowing the design to exceed the prescribed rules. By com-parison, conventional modeling would require multiple changes to the model and additional calculations to ensure that adjustments made during a collaborative working session still con-form to the site’s zoning.

A parametric approach also allows for data to be pulled easily from the model. Data points can be set to provide floor-area ratios, wall area, slab area, etc. This data can be directly linked to our client’s pro forma or contractor’s estimates so that impacts to increasing a floor plate or ad-justing a towers perimeter can be modelled and communicated quickly.

A major facilitator of our collaborative de-sign process is our enhanced studio conference rooms. These rooms have been purposely de-signed to facilitate interaction and information sharing. Our enhanced studio conference rooms play a critical role in the interaction of our team as it brings our clients, contracting partners and designers together in one space. Smartboards are the key feature as they provide the medium from which we display and interact with our paramet-ric models. They enable coordination and col-laboration to take place in real time.

Many architects might feel a tingle of nostal-gia for Wright’s story; however, there are many factors that are changing the focus of our profes-sion away from the individual and towards the collective. The focus on the individual is outdat-ed, and the modes of representation and design processes associated with it are as well. We must seek out design processes that enhance collabo-ration and provide value added information to our partners.

Peter Osborne, Architect AAA AIBC SAA MRAIC LEED AP, is a partner at GEC Ar-chitecture, and the current president of the Alberta Association of Architects.1 HttP://WWW.fallIngWater.Org

The resulting massing model generated from Grasshopper’s

parametric software. Parameters such as building height

and floor can be manipulated in Grasshopper automatically

updating the massing model in Rhino.

IMa

ge

CO

ur

te

sy

geC

ar

CH

IteC

tu

re

38 construction business January/February 2016

B.C.’S LARGESt BRIdGE wILL REPLACE GEoRGE MASSEY tUNNELA $3.5 billion bridge will replace the George Massey Tunnel in B.C. The new 10-lane bridge will be built over the Fraser River at Highway 99 over the tunnel, making it the largest bridge in province.

“The new bridge to replace the Massey Tunnel will improve highway safety, reduce greenhouse gas emissions from unnecessary idling, and save rush-hour commuters up to 30 minutes a day,” said B.C. Infrastruc-ture Minister Todd Stone.

The current tunnel is nearing its end of life, and no longer meets mod-ern standards for seismic safety. Many of its major components have about 10 years of useful life remaining before they need to be replaced, including the lighting, ventilation and pumping systems.

The bridge, which will be paid for through user tolls, will offer im-portant safety benefits that include: a design that meets modern seismic standards; additional lanes that make merging safer for all vehicles and will reduce an estimated 35% of collisions; and wider lanes and shoul-ders that will improve safety and emergency response times.

The bridge will be approximately three kilometres long, with four gen-eral travel lanes and one transit/HOV lane in each direction. Once con-structed, it will cut some commute times in half and also improve travel time reliability for the 10,000 transit passengers and 80,000 vehicles that use the tunnel each day.

Other project components include new interchanges at Highway 17A, Steveston Highway and Westminster Highway and widening ap-proximately 24 kilometres of Highway 99 to include one dedicated tran-sit/HOV lane in each direction from Highway 91 in Delta to Bridgeport Road in Richmond, tying into existing infrastructure.

Following completion of Phase 3 consultation, the ministry will finalize the project scope and cost estimate, and submit the project application for environmental review. Final decisions made by government will take into consideration the feedback received, along with remaining technical stud-ies and the environmental review. Construction will begin in 2017.

Industry News

ENGINEERING CoNSULtANtS MERGEThree specialized bridge, tunnel and marine engineering consultants have combined to drive the growth of COWI in North America. Effective January 1, 2016, COWI-owned companies Buckland & Taylor and Jenny Engineering Corporation join with sister company COWI Marine North America to become COWI North America.

The newly merged company will have 350 employees across 13 US and Canadian offices, providing the highest level of technical excellence in bridge, tunnel and marine engineering. It is a calculated move to take ad-vantage of the infrastructure demands of the next 10 years, as well as the COWI name in the international market.

COWI’s presence in North America dates back to 1988 with the pur-chase of marine engineering firm Ben. C. Gerwick. COWI later acquired Buckland & Taylor in 1998, Ocean and Coastal Consultants in 2007 and Jenny Engineering Corporation in 2012.

Steven Hunt will remain president & CEO of COWI North America, while Darryl Matson, formerly the president & CEO of Buckland & Taylor, will become senior vice president - bridges, and Winston Stewart, formerly the managing director of COWI Marine North America, will become se-nior vice president — Marine.

B.C. CoNStRUCtIoN woRkfoRCE SEt to GRow Major new projects from LNG plants and pipelines to utilities and trans-portation work will bolster British Columbia’s construction workforce to new record highs in 2018 and 2019, according to the latest labour market forecast released by BuildForce Canada.

BuildForce Canada’s 2016‒2025 Construction and Maintenance Look-ing Forward forecast shows B.C. construction beginning the year in a growth phase with new infrastructure projects and energy development leading investment. Specialized trades will be in demand from 2016 to 2019. As projects wind down, labour market conditions will ease in 2020 and 2021 leaving a gain in new jobs by the end of the scenario period in 2025. Residential construction is expected to remain largely unchanged be-tween now and 2018, before new housing activity declines as population growth slows, while demand for home renovation work rises.

BuildForce Canada’s forecast also shows:• Home renovation and maintenance work continue to grow, adding

2,000 jobs across the scenario.• Non-residential construction will be up by approximately 12,600 jobs

at the end of the scenario in 2025.• There is a need to replace more than 39,500 baby boomers retiring from

construction in the next 10 years.“More than 22 per cent of the province’s construction workforce is retir-

ing this decade,” added Sparks. “It’s a huge loss of skills and experience that requires industry planning well in advance.”

In Alberta, the forecast shows that declining oil prices are driving em-ployment lower across all construction sectors, with the projected loss of 31,000 jobs from the peak in 2014 to 2019.

fUNdING foR UBC SCIENCES CoMPLExThe B.C. provincial government has announced funding of $19.95 million for UBC to upgrade and expand the aging Biolgoical Sciences Complex used by life sciences students. Students taking life sciences at UBC learn about the fundamentals of human health, microbiology, disease and infec-tion, as well as plants and crops, biotechnology and animal health.

The $19.95 million in funding from the provincial government was an-nounced by the premier during her keynote address at the #BCTECH Summit. It will enable UBC to complete an $80-million makeover of the Biological Sciences Complex, a facility that provides 2,000 students and professors with classroom and laboratory space.

The project consists of renovating the 40-year-old north wing of the building and replacing the 68-year-old centre wing. It will eliminate ap-proximately $51 million in deferred maintenance costs and significantly mitigate seismic risk through structural upgrades. It expands on the first phase of the project, completed in 2011, which saw the redevelopment of the west and south wings.

NEw kINEtIC PRESIdENtKinetic Construction has appointed a new president, Tom Plumb who suc-ceeds Bill Gyles, Kinetic’s founder and longtime president and CEO.

Kinetic Construction, a construction manager and general contractor with offices in Victoria, Vancouver and Courtenay, is continuing its succes-sion plan with this appointment.

Plumb joined Kinetic in 1999 and previously served as Courtenay branch manager for 10 years. He is a graduate of BCIT’s Building Technology

program, a Gold Seal Project Manager and has a Red Seal in carpentry. He has spent six months training and learning from Bill Gyles in order to prepare for his new role. Gyles will continue working at Kinetic to help with this important transition, training and mentoring Plumb and other senior employees.

Docket #

Client

Project

Size Date1.604.575.0996

RA103-02•AD_Raindrop_V_8.75x12.25.indd

RCABC

Raindrop AD - Roofstar

8.75 x 12.25” 19 Feb 2014

Roofing involves some big decisions. Saying yes to the RoofStar Guarantee means peace of mind knowing your investment is backed by the

best in the industry. You’ll access the best materials, the most reliable contractors & installers—and you’ll have an independent, 3rd party

inspector on your team: someone who will monitor the installation process and work on your behalf to ensure things are done right from square

one. Because the only thing more determined than a stubborn raindrop, is our commitment to protecting your investment down the road.

Roofing: It’s what we do.

rcabc.org | roofstar.ca

NEVER UNDERESTIMATE THE IMPORTANCEOF A COMPREHENSIVE ROOF GUARANTEE

OR THE STUBBORN DETERMINATION OF A SINGLE

RAINDROP TO GO WHERE IT DOESN’T BELONG

Is your employee benefits plan as flexible as you are?

Ommm... we offer plan flexibility along with great service and experts every step of the way so that you can get on with your business (or your yoga class). Give us a call for a benefits plan that works for you.

Built for the construction industry.

[email protected]

604 683 73531 800 665 1077

construction business | january/february 2016

Documents