the official publication of the grand valley … · 2020-04-27 · the official publication of the...

THE OFFICIAL PUBLICATION OF THE GRAND VALLEY CONSTRUCTION ASSOCIATION • VOLUME 8 • ISSUE 1 • JANUARY/FEBRUARY 2019

The Forecast IssueFeaturing a look ahead to 2019’s top construction trends and plans.Plus a report on a special session hosted by WRDSB and GVCA.

GVCA-Journal_Jan-Feb-2019_3.qxp_Layout 1 2019-01-09 10:53 AM

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ConstructionSpend for 2019

GVCA Journal January/February 2019 3

The official publication of theGrand Valley Construction Association

JANUARY/FEBRUARY 2019VOLUME 8, ISSUE 1

Publisher: Martha George

Editor: James Raiswell

Contributors: Sandra ArthursPaul KnowlesLisa LackenbauerWayne RootSandra Watson

Photography contributor: Rob Agley

Layout and design: Patrick KilbornKymberly BurchellMoreSALES

Advertising sales: Sandra [email protected] 519-622-4822 x129

Subscription inquiries and letters to the editor: [email protected]

GVCA Journal is published six times yearly by theGrand Valley Construction Association ©2019 . All rights reserved.

Canadian Publications Mail Product Sales Agreement #42259531; ISSN 2368-2930; in Canadian Periodical Index.

GVCA Journal subscription is a benefit of Grand ValleyConstruction Association membership and is includedin membership fees.

Magazine Subscription: Canada $28/yr (incl. 13% HST).US/International $32/yr (Cdn).

Return undeliverable addresses to:Grand Valley Construction Association,25 Sheldon Drive, Cambridge, Ontario N1R 6R8

© 2019 Grand Valley Construction AssociationAll rights reserved. The contents of this publicationmay not be reproduced by any means, in whole or inpart, without prior written consent of the publisher.

DEPARTMENTSFEATURE ARTICLES

12

18

20

24

4 MESSAGE FROMTHE CHAIR

4 MESSAGE FROM THE PRESIDENT

6 LEGAL

8 FINANCIAL

10 SIGHTINGS

16 SAFETY

30 GVCA EVENTS &EDUCATIONCALENDAR

30 ADVERTISERS’INDEX

28

Top Trendsfor 2019

Collaboration,Partnership &Teamwork

Top 10Projects of

2019

Medical Marijuana:

Grievance Dismissed

VISIT WWW.GVCA.ORG FOR DETAILS

Grand Valley Construction Association invites you to attend our

2019 Annual General MeetingHall of Fame Induction & Business Heritage Tribute Awards!Tuesday, February 26, 2019 at Hacienda Sarria, Kitchener


4 GVCA Journal January/February 2019

MESSAGE FROM THE CHAIR

MESSAGE FROM THE PRESIDENT

Locally, confidence by pri-vate construction developersis positive, and infrastructuregrowth in our region contin-ues at a rapid pace. We liveand work in such a vibrantregion of the province that Ican’t help but see even morepositivity on the horizon. Weare supported by strong edu-cational institutions, a well-developed high-tech indus-try, and organizations such as the Waterloo Regional

Economic DevelopmentCorporation and Commu-nitech that are constantlyplanting seeds to attract andgrow new businesses.If you attended our annualindustry outlook event inNovember, you will haveheard many of these ac-counts firsthand. If not, readour summary article for ourmain buyers’ planned spend-ing programs. Spoiler alert:it’s good news.

That said, not everything isrosy. Our main challenges willbe navigating through labouragreements and wrestlingwith low unemployment rates.Many contractors are alsostruggling with issues relatingto the legalization of cannabis,and its impact on the work-place. Moreover, we are hand-cuffed when it comes to deal-ing with issues like fluctuatingcommodity prices, govern-ment investments, and new

trade agreements.While I see great opportuni-ties ahead for us—construc-tion 4.0, which is the digitiza-tion of our industry, promisessignificant advancement—none of us can sit back andwait for things to happen. Asbusiness owners, we need tolook at the world of changeand stay relevant. We need tobuild businesses for tomor-row’s marketplaces, not yesterday’s realities.

I read recently that Ontario’s GDP is expected to grow by 1.8 percentin 2019, 1.7 percent in 2020, and 1.5 percent in 2021. That puts oureconomy just slightly behind B.C. as the leaders in provincial growth.

Martha George, GSC

The outlook is

Good!

Backto where we started

Those who supported theidea believed it would be agood vehicle for promotingthe skilled trades to workersacross the province, and eventhroughout the world. Thosewho opposed it saw the col-lege as, at best, more red tapeand at worst, a thinly veiledattempt at unionizing more

of the province’s trades.

Now that the college is des-tined for the scrap heap, Iwonder what’s next. Mysense is that the Ministry ofTraining, Colleges and Universities will take backadministration over thetrades. In other words, we’ll

be right back to where westarted five or six years ago.

And while some will arguethat’s a good thing, and oth-ers will complain it’s bad, thestory that’s not being told tonearly the same degree is thetime and money wasted onthis experiment. What cost

for the development of thecollege, its work, and now itsdismantling? Surely that’smoney that would have beenfar better invested in mean-ingful programs that couldhave actually benefitted ourOntario workers and apprentices.

The College of Trades has come and gone. During its time in action—and even prior to its creation—it was a polarizing entity, to say the least.

Steve Stecho, GSC


Grand Valley ConstructionAssociation congratulatesits Safety Group members on thesuccessful completion of the2017 WSIB Safety Group Program

Registration is now open for 2019 Safety Groups Program.

For more information or to register, please contact Sarah

519-622-4822 x 124.

Safety Group membership is

person or private consultant, for a fraction of the cost!With complete health and safety support.

to S. G. Cunningham and Zero Environmental, the Gold and Silver winners of the Small Business

Health and Safety Leadership Award!

SpecialcongratulationsGVCA’s Safety Group

members scored 4.86% out of a possible 5%,

earning a shared group rebate of $247,841.


The recent amendments to the ConstructionAct introduced adjudication, a flexible and effi-cient dispute resolution process for paymentdisputes arising during construction projects.With the entire process designed to take nolonger than 46 days, adjudication’s tight dead-lines are meant to resolve disputes quickly, allowing projects to continue with minimaldisruptions. Those in the construction industryshould be prepared to adhere to this tighttimeline should they find themselves facedwith an adjudication, which will apply to con-tracts entered into on or after October 1, 2019.While Ontario is the first Canadian jurisdiction to introducean adjudication process, it is based on the UK model, whichhas been successfully resolving payment delays and prolongedlitigation for over 20 years.

LEGAL


All AboutAdjudication

Under the act, parties will be entitled to

refer disputes to adjudication in relation

to issues that are set out in section 13.5.

These include:

• the valuation of services or materials

provided under the construction contract;

• payment under the construction contract,

including with respect to change orders;

• those disputes that are the subject of a

notice of non-payment under Part I.1;

• amounts retained under section 12

(set-off by trustee) or under subsection

17(3) (lien set-off); and

• payments, or lack thereof, in relation to

a holdback.

Parties may also refer any other matter

to adjudication upon agreement

between them.


A party can commence anadjudication against a partyonly with whom it has acontract and before thedate that contract is com-pleted. The process isstarted by the party whowishes to refer the disputeto adjudication delivering awritten notice of adjudica-tion to the other party,which, pursuant to section13.7 of the act, must in-clude: the names and ad-dresses of the parties; thenature and a brief descrip-tion of the dispute; the na-ture of the redress sought;and the name of a proposedadjudicator. An adjudicator will be selected within 11 days ofthe delivery of the notice ofadjudication, whether by

agreement of the parties orappointment by the author-ized nominating authority,the body selected by theOntario government to administer the adjudicationprocess. Once chosen, pur-suant to section 13.11 ofthe act, the party who com-menced the adjudicationhas five days to provide theadjudicator with the docu-ments upon which it intends to rely. The adjudi-cator then has broad discre-tion to conduct the adjudi-cation in the manner he orshe believes is appropriate,provided a decision, inwriting, is made within 30days, unless extended onconsent by the parties. Aparty required to pay has 10 days to do so.

Referred to as the “pay nowand argue later” philosophy,an adjudicator’s decision isbinding on the parties untila court or arbitrator ruleson the matter, if necessary.In practice, however, the adjudicator’s decision willmost often be the end ofthe matter. Adjudication inother jurisdictions hasproven successful in resolv-ing the majority of disputeson a final basis. A potential concern withthe adjudication process isthat the tight deadlinescould lead to a form ofrough justice, where adjudi-cators must make quick de-cisions on matters of signifi-cant legal or factualcomplexity, which couldlead to injustice.

Another concern is that theparty responding to the adjudication could be ambushed by the referringparty, who may have pre-pared for the process beforecommencing it. It is hard to know how exactly theseconcerns will play out, although some comfort canbe taken in the success ofthe UK experience. Never-theless, companies shouldturn their minds to ensuringthey have the proper resources in place, includingmaintaining a complete and organized documentaryrecord, that will allow themto quickly and effectively respond to adjudication in a manner that will lead to the best outcomes for them.

LEGAL


This article was written by Sandra Watson, an associate in Sorbara Law’s litigation group. She can be reached at [email protected] and 519-741-8010 ext. 348.

Full CircleService

Building Canada’s Future Since 1923 519-742-5851 www.ballcon.com

Wilfrid Laurier University Frank C. Peters building, Waterloo, Ontario

Ball implemented manycreative and economicalsolutions while workingclosely with the trades,consultants and campusrepresentatives to expeditemodifications and approvalsand mitigate lost time. The project, which unfolded on a busy university campus,remained accident-freethroughout the project.


FINANCIAL


Types of forecastsThe most common types offorecasts are business-levelforecasts. These help definethe vision for the future, es-tablish budgets and createbenchmarks for performancemeasurement. Common examples of items forecastedare revenue, gross profit, operating expenses, net profit,and cash flow. These are often longer-term forecastsfocusing on a year or more.Another common and important type of forecast isthe project forecast. Theseare typically more short-termin focus and ensure projectsare monitored carefully forsuccess. Common categoriesof a project forecast are rev-enue, expenses, profit for theproject, as well as expensesremaining to complete andresource allocation. The resource allocation compo-nent is important as overrunsin labour hours on one proj-ect can have a negative effecton upcoming projects, whichcan be hard to recover from.

Properly forecasting resourcerequirements and ensuringenough flexibility is vital for successful project management.External force forecasts areimportant to consider aswell. These involve analyzingexternal factors such as eco-nomic conditions, politicaland social influences, as wellas technological and envi-ronmental factors. Politicalagendas and spending plat-forms can have a significantimpact on the constructionsector. Therefore, it is impor-tant for companies to stay upto date on political issues.Environmental factors candrive government regula-tions. These regulations cangenerate new business sec-tors but can also put pressureon existing sectors. Social influences such as the chang-ing values of different gener-ations can affect demand inthe construction sector. Inhome building, due to therising costs of home owner-ship and changing values of

the younger generations wewill continue to see alterna-tives to the traditional detached housing that haveserved homebuilders well fordecades. Technologicalchanges such as innovationsand improvements in onlinetechnologies and resourcesharing are important con-siderations to keep busi-nesses on the leading edge.

Timing and measuringforecastsFrequently the majority ofanalysis is done at the end ofa year or end of a project.The actual results are sum-marized and compared tothe forecast for that year orjob. This analysis is usefuland helps to build expecta-tions and identify improve-ments for future projects.The problem with this approach is that it’s typicallybased on historical data. Ithelps only to identify the issue that resulted in lowerprofitability or an extendeddeadline. By the time thisback-end analysis is finished,you may have completedmultiple other projects—allwith similar shortcomings.The key issue is timeliness,so you can identify the issuesin as close to real time aspossible and implement

solutions immediately. Sinceyou have gone through thework of quoting the job youhave already estimated thematerials and labour require-ments. You have essentiallyalready forecasted the jobupon agreeing on the finaltiming. If you maintain up-to-date accountingrecords and allocate costs byproject you will be able toconstantly monitor progressagainst your initial quote. Ifyou identify labour hours arehigher than expected, youcan start working on alter-natives for resource alloca-tion right away to avoid amissed deadline. If you notice costs are higher thanexpected and you are early inthe project, you may be ableto identify areas of savings inthe remainder of the job tomeet budget. Some labour orcost overruns may be relatedto items out of scope whichcould result in additionalbilling opportunities. All ofthese are much easier ifidentified early and then youare able to develop a planquickly to rectify the issue.

PeriodsAs noted, project forecastsare very common and focuson the short-term as theyrun the length of the proj-

You’ve Made a Forecast,

Now What?

Forecasting is an important part of anysuccessful business plan. A lot of work andthought goes into creating a forecast. Butthat’s just the tip of the iceberg. What doyou do with it once it’s created?


FINANCIAL


This article was written by Wayne Root, CPA, CGA, Partner at RLB LLP. Contact him at (519) 822-9933, or visit rlb.ca

ect. Business forecasts aretypically longer-term fore-casts and the most commonperiod is annual. This oftencoincides with the businesstaxation year-end as annualfinancial statements are prepared for tax purposes.These are typically preparedby external accountants andprovide a great base ofknowledge and informationto use when forecasting forthe upcoming year. How-ever, it’s important to con-sider whether this is the optimal period for yourbusiness. From a resourceperspective, ideally youwould prepare your forecast-ing during slower periods asopposed to your busiesttime of year. Although these

forecasts typically focus on alonger period they should bebroken down into smallermore measureable periods.Typically, they would bepresented monthly so youcan compare actual costs tobudgeted costs throughoutthe year to ensure you are on track. If a business onlylooks at annual forecaststhey may think they are on track but may in fact bebehind if the timing of workis not consistent throughoutthe year. Many businesseswill also use 12 to 18 monthrolling forecasts that get updated consistently. Thisprovides more up to date results and allows for betterquoting and resource management.

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To summarize, forecasts are a valuable

part of any financial plan. The key is

focusing your effort into the areas that

would have the most positive impact on

your business. For example, if missed

deadlines are consistently an issue, then

focus your time on project management

and forecasting rather than annual business

forecasts. This will vary from year to year

and period to period as the external factors

affecting your business change. Once

forecasts are set, measurement is crucial to

ensure you have real time data to analyze

and make appropriate changes that will lead

to current and future success.


GVCA SIGHTINGS


Children's Christmas Party

Colleges Ontario, 2018 Premier's Awards Recipient, Don Gosen

Conestoga College Alumni of Distinction Awards

WSIB Safety Group Rebate Ceremony

Baywood Interiors Hosts Plant Tour for Cameron Heights Students

Open Forum Discussion with the Waterloo Region District School Board


GVCA SIGHTINGS


Kevan Thompson Industry Leader,

Vice President Construction

Phone: 519-650-6363 ext. 41552 Toll free: 1-866-578-6030

[email protected] www.cowangroup.ca

Tailored insurance & surety solutions

Dedicated risk management team

Construction Insurance & Surety Specialists

CONSTRUCTION

GVCA Annual Christmas Lunch

WinC Holiday Sparkler



“We had notable success with the winin 2016 with Bosch and their researchand development centre in Waterlooand then the expansion by Toyota,which has spent $1.4 billion in the region,” he said. “We closed a deal in2018 with a company called Leoniwhich is a German company based inNuremberg. This is a specialty manu-facturer of high-end cables for severalindustries including the healthcare andautomotive industries.”WREDC and their partners visitedLeoni’s head office in 2017. There, theygot a good sense of the project, and laidout their vision in support of the com-pany’s growth in Waterloo 2018.“Considering 90 percent of their prod-ucts get shipped to the U.S., the deal gota little stuck in 2018 due to concernabout NAFTA,” said La Mantia.

“Through education and advocacy, wehelped Leoni’s executive managementthink beyond the Trump presidency andhave confidence in our region.”

Big action has continued in the regionlargely due to successful collaborationwith local, provincial and federal gov-ernments. Companies are searching for‘big barn’ space which is warehousing foronline shopping. There will be contin-ued intensification in the region over the next five years.

According to a CBRE report, the localvacancy rate is the third lowest inCanada next to Vancouver andToronto. The fundamentals are set forgrowth, a fact that makes good rela-tions with Toronto and connectionswith the rapid rail corridor that muchmore important.

Market snapshot fromCushman WakefieldCourtney Jones, a research analyst forCushman Wakefield, Waterloo Region,stated that the technology boom contin-ues to have an effect on the WaterlooRegion with most of its influence on theindustrial sector.Local companies continue to look formixed use spaces with a combination ofa technology and office space along withdistribution facilitation such as onlinewarehousing.Cushman Wakefield is excited to be apart of this boom with the new IP ParkProject being officially launched this fall.The project will include 5 million squarefeet of industrial complexes over 400acres of land.The project has been slated for over $1 billion in investment as well as fund-ing from the federal and provincial governments. It will create 450 new

Tony La Mantia, president and CEO of the Waterloo Region Economic Development Corporation (WREDC), welcomed attendees to GVCA’s fourth annual Economic Forecast

event, and focused on some of the region’s recent wins.

Economic Forecast EventConstruction Spend for 2019


jobs as well as more than 1,000 co-opplacements for the region.Jones stated we are also seeing signs ofoffice tenants looking for larger squarefootages to expand their original tech-nology start-ups. Vacancy across the region has steadily been decliningthroughout 2018, which is causing leaserates to increase. Most of the availabil-

ity is in older buildings with feweramenities.Construction in the office and industrialsectors is expected to see a steady increase beginning in 2019 after a smallplateau over the last two years. Olderbuildings are being modernized. For example, the north end of Waterloo hasprojects like Maple Tree Landing which

will retrofit previously outdated spacesand repurpose them into multiuse sites.Real estate investments for Canadiancommercial transactions reached a highof $16.5 billion in the second quarter of2018—an increase of 38 percent overthe previous record in 2017. Althoughinterest rates are slowly rising, real estatetransactions appear to be unaffected.


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Purchaser spend: City of CambridgeJames Gooderam, director of economicdevelopment and corporate strategy withthe City of Cambridge, stated that overthe past year the city has commissionedmore than 65,000 square feet of new construction and additions, along with300,000 square feet of renovations. As aresult, the city has created 600 new jobs.There continues to be a transformation of the downtown centre. HIP Develop-ments’ Gaslight project has been a fantas-tic catalyst for new interest in the downtown core.“We have opened a new pedestrian bridgethis year and commissioned a digital lightshow at the new digital library which hasdrawn thousands to the downtown coreon the weekends,” said Gooderam. “Earlynext year you will see a tender go out forthe reconstruction of Main Street.”HIP Development is currently workingon the old American Standard building tocreate 45 condominiums. A number ofproperties are vacant and will need recon-struction and development.

Purchaser spend: University of Waterloo Rob Hunsperger, director, design andconstruction services, stated that thecompletion of Engineering 7 has hap-pened. Along with the capital renewal,the university will focus on the sciencedepartment—particularly the aquaticdivision.

“With very big projects behind us weare now being told that we need tobrace ourselves for a period of auster-ity,” he cautioned. “The governmentfunds we have come to rely on are notas secure as we would have hoped.”

The university is now on its third cycle of building renewal. Since anumber of buildings date back to the1960s, many need partial renewal andother infrastructure upgrades.

The university’s next big project willbe the Science Teaching Complex and a physics renewal estimated at $60 million. Neither is likely to be tendered in 2019.

Purchaser spend: City of WaterlooMary Catherine Lorentz, project coor-dinator, facilities, stated that due to con-tinued growth, the city is experiencingaccelerated use of its existing facilities. Itnow has a comprehensive asset manage-ment plan to deal with this challenge.Its main planned projects are the demo-lition of the Waterloo Golf Academy,construction of a new recreational facil-ity at $18 million, a new pavilion to beconstructed at RIM Park, and four newoutdoor activity parks—three of whichare skateboard parks. In addition tothese projects, the city has allocated $1 million for roofing projects.

Purchaser spend: Conestoga CollegeJacinda Reitsma, vice-president financeand corporate affairs, was very upbeatabout the recently completed John W.Tibbits Building. She added that thecollege will not give up on the MiltonCampus project.“We are not expecting a lot of extrafunding to come to the educational institutions this year,” she said. “We willprobably need a new student centre atthe Doon Campus and we are alwayslooking at new ways to innovate and usespace in different ways.”

Purchaser spend:Waterloo Region District School BoardGVCA, reporting on behalf of the board,stated that there will be a total spendingplan of $26.8 million at 46 schools rang-ing in project size from $57,000 to $2.5million. There will be $6.3 million bud-geted for additions to three schools, $6.1million for HVAC repairs and $14.4million for other necessary renovations.

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Purchaser spend: Wilfrid LaurierUniversityMark Detweiler, director of planning,design and construction, also spokeabout getting a grip on the new aus-terity. The $10 million in fundingpromised by the provincial govern-ment for the new Milton and Con-estoga College campuses has been removed.

The university is continuing to workon its energy efficiency throughout thecampus, and there will be many othersmaller projects on the go.

“We are looking to build a second sci-ence building on the Waterloo campusestimated at about $12.5 million andan addition to the music building,” he said.

Purchaser spend: City of KitchenerJustin Readman, general manager ofdevelopment services, stated the lightrail project will open soon. The city has20 projects on the go in the downtowncore with a budget around $1.2 billion.

The city has a cycling trail master planthat calls for new and protected cyclinginfrastructure in the next few years.The rotary servicing project will beginin 2020, and the city plans to build anew community centre in the southend in 2019.

“We have an aggressive plan for reduc-ing our carbon imprint by 2050,” saidReadman. “I suggest everyone get upto speed on green energy alternativessuch as solar energy before bidding on projects.”

Purchaser spend: Region of WaterlooPhil Bauer, director of design andconstruction, stated that the region is on track with its 10-year capitalbudget plan. The picture for 2019 will be very similar to 2018.

In 2018, the region had 40 large construction projects in the works,one of which was the completion of the first phase of uptown Waterloowith the Fountain Street bridge.Planning is well under way for theRiver Road construction valued at$68 million. There is continued work at all our waste water plants and there will be construction of anew Grand River bus maintenanceand storage facility.


SAFETY



SAFETY


Working in the

Editor’s note: this infographicwas created by the CanadianCentre for OccupationalHealth and Safety. For moreinformation, visitwww.ccohs.ca.

Working in thecold can not onlybe hazardous toyour health, butalso potentially life-threatening. Coldinjuries range fromchilblain, trenchfoot and frostbiteto hypothermia,which is a medicalemergency. In orderto work safely, thenumerous risksposed by frigidtemperatures, windchill and wetnessneeds to be coun-terbalanced by various measures,including con-trolled exposure,education andtraining, and properinsulation.

COLD



Baker DistrictRedevelopmentThe 113,000-square foot developmentis located on Baker Street in Guelphand will include two 10-storey residen-tial buildings. It will include 25,000square feet of retail and office space, amunicipal library, a public plaza and apublic parking garage. It will provideabout 275 residential units to supportthe city’s intensification goals. The over-all cost is approximately $60 million.

Sportsplex Port ElginThe project will consist of seven balldiamonds, multiple soccer pitches, awalking track and some parkland. Thesite is irregular in shape with over1,000 metres of frontage on conces-sion 6. East of Walmart, the site is

level with Concession 6, droppingdown at the west side of the propertynear the west access point. TheSaugeen Rail Trail runs along the westand north sides of the property, withan Environmental Protection areaalong the east side and Concession 6along the south edge.

Waterloo Twin TowersGround could be broken on this projectin late 2019 or early 2020. Downtownmerchants are beaming after Waterloocouncil approved controversial condotowers soaring to 24 storeys above Kingand Regina streets, at Bridgeport Road.Merchants hope the unique design ofthe towers, including an undulatingglass ribbon around the lower floors, willreturn thunder to Waterloo by rivalling

the new entrance to downtown Kitch-ener at King and Victoria streets. Redevelopment costs are anticipated at more than $100 million.

Trinity United ChurchRedevelopmentThe existing 42,000-square foot build-ing, which has no significant architec-tural or heritage value, would be torndown. The church is working on plansto preserve essential elements of thecongregation's heritage, such as stained-glass windows and church archives.Plans are still in the early stages, but thechurch hopes to build at least one, pos-sibly two, buildings of up to 20 storeys,with units suitable for one or two peo-ple and limited parking. In keepingwith the church's social mission, Trinitywould like the units to be modest andrelatively affordable. As well, the devel-oper plans to build up to 18,000 squarefeet of space that the church can use forits worship and offices, and which com-munity groups may use for meetingsand activities.

Want some insight into the biggest projectscoming up in our region in 2019? Welooked into our Crystal Ball (Report) to find the top projects planned for the

new year. Sharpen your pencils!

TheTop 10Projects of

2019Baker District Redevelopment


Student Residence atUniversity of TorontoScarboroughThe University will use a design-buildbridging project delivery model for thisproject. The proposed new residence isenvisioned as approximately 10 storeysabove grade, with the potential for onestorey below grade. It will be a 750-beddormitory style residence, and the construction budget is in the range of $80 million.

St. Lawrence MarketNorth BuildingA new 228,000-square foot, five-storey,multipurpose building will house the es-tablished Saturday Farmers' Market andSunday Antique Market on the groundfloor, as well as Toronto Court Services’courtrooms and administrative officeson the four upper floors, and a 250-space underground parking garage, extending four levels below grade. Theestimated value of the proposed construction work is $75 million.

New Guelph Lake Nature CentreThe new Nature Centre at GuelphLake Conservation Area is gettingcloser to reality. The Grand River

Conservation Authority recentlyagreed to contribute $100,000 to theproject, bringing the total money raisedfor the project to $1.82 million. Thenew centre is projected to cost between$2 million and $2.5 million.


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Student Residence at University of Toronto Scarborough New Guelph Lake Nature Centre



The existing nature centre, located in aformer house on Conservation Road,will remain open and offer program-ming until the new facility is built.That facility has been used since 1980.The Grand River Conservation Au-thority approved moving ahead withconstruction drawings, detailed designand specifications.

Niagara Falls PublicHealth BuildingThe new facility will be approximately21,500 square feet in total area with theexterior shell and foundations. Theproject site is located at 7835 McLeodRoad. The site infrastructure will con-sist of new civil infrastructure to ac-commodate water (domestic and fire),sanitary and storm services. The sitewill also include a paved parking lotwith sidewalks and landscaping.

Kitchener Frame Site‘Bud Park’ HomerWatson Medical &Professional CentreThe first phase will likely be a medical/professional/commercial complex thatwould sit on about 3.8 acres of land.That could take shape as a single build-ing of about 60,000 square feet or twosmaller buildings at about 30,000square feet each.The developers are in the process of at-tracting industrial tenants for twobuildings on the site that were not de-molished; one is about 50,000 squarefeet and the other is about 80,000square feet.

A 50-acre parcel of the site is expectedto remain industrial, with 25 acres des-tined for retail. Work over the pastcouple of years has included environ-mental cleanup, the installation andconnection of site services, and theconstruction and preparation of newsite entrances.

Grand Market District The first phase of Waterloo Region’snew light rail transit system has a ter-minus at the Fairview Park property onFairway Road in Kitchener. Two newoffice buildings will be designed withbrick and beam aesthetics, with exposed11-foot ceilings and floor-to-ceilingwindows. The east building is expected

to be five storeys and include 200,655square feet of space. The smaller, four-storey west building is planned with al-most 66,000 square feet of space.Grand Market District's traditionalbrick and cobblestone streets and lanesare an historic reference to SouthernOntario's rich examples of Victorian-era industrial architecture. The projecttouts new and existing entertainmentand dining options, from cafes anddine-in restaurants to specialty bou-tique grocers.The project outline states the site willboast more than 3,800 parking spots,both in surface and underground lots inthe new structure.

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What’s new—or moreimportantly, likely to benew—for GVCA membersin 2019? We’ve identified a

“lucky 13” set of trends, ranging from theimpact of new provincial governmentlegislation, to new approaches to training,to safety concerns for women on the jobsite.

We believe the immediate future for our industry is bright,even as we wait with considerable interest to see what theprovince will do about infrastructure projects and institutionalconstruction. But there are plans in progress by area municipal-ities, institutions, and, of course, the private sector—especiallyin the Kitchener-Waterloo Light Rail Transit corridor, which isseeing development valued in the billions of dollars.

Here’s what to look for in 2019:


3

Open tenderingIn what could be a game-changer for construction compa-nies—in sharply contrasting ways—the Ontario govern-ment is moving ahead with Bill 66, an amendment to theprovince’s Labour Relations Act of 1995. The new lawwould open up public construction projects to non-unioncontractors and sub-contractors.The PC government says this will “cut red tape.” Somecontractors say it will level the playing field. The OntarioFederation of Labour says it will put lives at risk. The Carpenters’ Union in Ontario says it will sue.What the legislation will do is increase the number of bidders for public infrastructure work in municipalities including Waterloo Region, Hamilton and Toronto. It will also most probably produce a fair amount of debateand rancour at any construction industry gathering.

1

Labour shortages

Skilled trade workers, includingelectricians, welders andmechanics, have been in shortsupply for a decade. Accordingto the Canadian Federation ofIndependent Business, thiscategory of worker has consistently seen the most jobvacancies in the country. One in four employers report thatfilling skilled trades worker positions is getting harder bythe year. Over 40 percent of Canadian employers sayfinding skilled trades workers is their biggest hiring challenge. But answers may be on the horizon.

2

A new look at training

The bad news is, almost a quarter of people applying for positions where workers are in short supply don’t have the skills to do the job. The good news is, educationalinstitutions, especially community colleges, are creatingflexible and innovative programs to help to meet that need.Conestoga College president John Tibbits has identifiedthat a current challenge for employees and prospectiveemployees is keeping up to speed in terms of their skill sets.He says that Conestoga and other colleges are going to beoffering more and more short-term training, leading not to a degree, but to a higher level of competence.

By Paul Knowles



Diversity and inclusionEmphasizing diversity and inclusion in your business isnot only the right thing to do, it is increasingly the smartthing to do. Being inclusive opens the door to a muchlarger talent pool, part of the solution to the labour short-age noted above. And there are plenty of partnerships—with government and educational institutions—availableto assist with necessary training, including of immigrantswho need an upgrade or certification of their skill sets.

4

Data analyticsAccording to experts, the Canadian construction industry isasleep at the wheel when it comes to using data analytics toimprove projects. Speaking at a Building Show workshop,Tamer El-Diraby, associate professor in the Department ofCivil and Mineral Engineering at the University of Torontoand the director of the Centre for Civil Informatics, con-tended that “a fundamental change in thinking” is required.Canadian constructors need to use data analytics rightacross the scope of their projects; results will range from im-proved transportation options, to anticipating consumer reaction to green projects, to understanding the impact onchanging weather patterns on your project.

7

Educational institutions growingIn response to demographic realities, university enrolmentmay decline in the near future, but the demand for new, cut-ting-edge facilities seems to mean that campuses will beconstruction sites for years to come. And community col-leges are seeing significant increases in student numbers—especially Conestoga College, lying at the heart of the areacovered by the GVCA. Conestoga will launch a significantexpansion at its Kitchener campus this spring, and is still focusing on proposed new facilities in Milton and Brantford.

5

8

Prompt paymentOur industry will always face the challenge of “balance ofpayments.” We have bills that we must pay (employees,suppliers, taxes, and on and on) and bills we need to collect(which may linger well past ‘best before’ date). A Govern-ment of Canada report suggests a few creative optionswhen payment is less than prompt, including invoicinglarger bills in portions, and offering a reward for immediatepayment (the report suggests 2 percent reduction, which isprobably undoable on major projects). But a key that liesentirely within your power is to “invoice immediately.”

9

Greener by the dayIt’s not a brand-new trend, but the need to be green contin-ues to ramp up. That’s not inappropriate. Statistics showthat across the globe, buildings are responsible for morethan 40 percent of energy usage, and create about one-thirdof all greenhouse gas. Look for “green” to mean not onlybuilding environmentally sustainable projects, but carryingout the project in a sustainable manner, running your busi-ness as a sustainable business, and then ramping that up tobe uber-sustainable. Your opportunity is to become a com-pany that actually improves the environment, giving backmore than your operation takes, by creating excess electricityto give back to the grid, or adopting tree-planting programs.

6

Cyber-securityThe phrase “cyber-security” conjures up images of identitytheft or stolen corporate records, but in an industry that isheavily machine-dependent, there is another crucial con-sideration—Cyber Security OT (Operational Technology).The Industrial Internet of Things has created the potentialfor hackers to gain access to industrial systems—a concernfor companies building new industrial facilities, and for contractors whose own operations are increasingly “cyber”.



Modest economic growthThe Canadian economy will continue to grow, accordingto the experts at TD, which should mean stability for theconstruction industry. TD has predicted 2 percent growth“in the coming quarters.”

11

Millennial managementMost managers or owners of a certain age would have toadmit to griping, at least occasionally, about the stereotypical“Millennial mindset.” But what 2019 and the coming yearswill see is Millennial management, as baby boomers retire,and their millennial offspring or successors move into seniormanagement positions. That will undoubtedly mean asignificant up-tick in the use and development oftechnology. It may also mean a change in corporate attitude,with an increased focus on work-life balance, more immediate rewards, and potential for career advancement.

10

Safety surprises

Health and safety have long beenfront and centre for the constructionindustry. But there may be some surprises for those who assume “sameold, same old.” The labour shortagehas actually increased safety concernson the worksite, because companiesconcerned with contract deadlinesmay be rushing people to the job before they are adequately trained. More than a third of worksite injuries occur among workers with less than a year of experience.As well, an increasing number of women on constructionsites has highlighted specific gender challenges—likepoor-fitting safety and other equipment designed andfabricated for male workers.To stay on top of safety trends, take advantage of theGVCA’s Safety Groups program.

12

Substance abuseA report from the American National Safety Councilstates that 15 percent of construction workers havesubstance abuse disorders, almost twice the nationalaverage. That doesn’t cover the current Canadian situationwith the legalization of marijuana consumption. A trendin 2019 is undoubtedly going to be the codifying ofcompany requirements, development of tests that meet theneed for safety but do not impinge on personal privacy,and substance use restrictions across this entire spectrum.

You already know this is not the whole picture for 2019. We’llsee what unfolds as the year progresses. But these trends willundoubtedly play a role in our industry, so we offer this quickheads-up on 13 of the most likely issues. And we wish you thevery best in this exciting business in the year ahead.

13


Issues that matter was the theme of aworkshop co-hosted in December bythe Waterloo Region District SchoolBoard and the Grand Valley Con-struction Association.

It was a frank and open discussionwith representatives from the boardand many in the construction pyramid,including general and prime contrac-

tors, subcontractors, consultants, architects, project managers, adminis-trative staff, estimators and more.

Topics included prompt payment,RFPs, subtrade challenges, holdbacks,change orders, profit margins, defi-ciency lists and scheduling.

The school board’s goal is to improveits processes and work more closely

with its construction partners to betterserve the residents, and the children,of Waterloo Region.There are always frustrations whenworking on major construction proj-ects. The board must follow provin-cial regulations and requirements thatsome are not aware of. At the sametime, contractors, subtrades, architectsand designers have a chain of com-mand that can be confusing and cumbersome.The event allowed everyone to explaintheir roles, and to outline their mainissues of concern. Working to resolvethose issues was the goal of the day.


The Waterloo Region District School Board hosted aworkshop on December 12 where it and its constructionpartners discussed many ideas that would help themwork together more successfully throughout 2019.

Collaboration, Partnership & Teamwork



It was certainly a day of collaboration,partnership and teamwork. The Waterloo Region District SchoolBoard is already planning for a similarevent in 2019 where it will provide an update on its progress and ask formore input and feedback from the industry.The GVCA will keep you posted onthe scheduling!

Some of the board’s plans for 2019 include:● implementing an improved procedure for payment

through electronic funds transfers by April

● reviewing the change order process and hold backs

● implementing electronic bidding and tendering

● adopting Revit software on school drawings for use byarchitects and engineers


The recent legalization of recreationalcannabis has highlighted the fact thatthere are a number of questions regard-ing the impairing effects of cannabisand how they may be measured. Thesequestions generally focus on driving under the influence of cannabis and theapparent lack of technology to quicklyand accurately measure impairment levels. As a recent arbitration decisionfrom Newfoundland demonstrates,these issues are also arising in the work-place in the context of medically-autho-rized cannabis use.In Re International Brotherhood LowerChurchill Transmission Construction Em-ployers’ Assn. Inc. and IBEW, Local 1620,the grievor alleged that the employerfailed to accommodate his disabilitywhen it refused to hire him on the basisof his use of medically-authorizedcannabis. By way of background, thegrievor was a construction worker whosuffered from osteoarthritis and Crohn’sdisease. His physician prescribed

cannabis to manage the pain arisingfrom these conditions. The grievor consumed the medically-prescribedcannabis at night before rest. Heclaimed that by morning the impairingeffects of the cannabis were gone.In late 2016 and early 2017, the grievorapplied for two labour positions on aproject involving the development of ahydroelectric generating facility. In eachcase, the employer refused to hire himon the basis of his use of medicalcannabis. The grievor grieved, arguingthat by not hiring him, the employerfailed to accommodate his disability.The employer defended its decision onthe basis of its statutory obligation toensure a safe workplace for all workersand the fact that the two positions thegrievor applied for were “safety-sensi-tive.” The employer argued that while ithad met its obligation to individually assess the grievor’s disability and possi-ble accommodations, ultimately thesafety risks arising from the grievor’s use

of medical cannabis brought the em-ployer to the point of undue hardship.

At arbitration, there was no dispute thatthe employer was obligated to ensure asafe workplace, nor that the grievor’smedical condition was a disability requiring accommodation to the pointof undue hardship. The issue waswhether the grievor could be accommo-dated such that he could work safely ineither of the two positions. If he couldnot, then those safety risks would resultin undue hardship for the employer.

A key question was whether the grievorcould potentially be impaired while atwork. While the arbitrator accepted thatthe grievor’s use of cannabis was in theevenings, he noted that the lasting effects of impairment were not knownwith certainty. The arbitrator relied onthe lack of reasonable ability to measureimpairment in persons using cannabis.Specifically, the fact that blood andurine tests do not measure current im-pairment, coupled with the lack of indi-viduals specially trained to observe andmeasure impairment were found topresent a risk of harm that could not be readily mitigated.


rbitrator states worker’s use of medical cannabis results in “unacceptable increased safety risk.”

Medical Marijuana:

Grievance Dismissed

A



1. The regular use of

medically-authorized

cannabis products can

cause impairment of a

worker in a workplace

environment. The length

of cognitive impairment

can exceed simply the

passage of four hours

after ingestion.

Impairment can

sometimes exist for up

to 24 hours after use.

2. Persons consuming

medical cannabis in the

evening may sincerely

believe that they are not

impaired in their

subsequent daily

functioning. They can,

however, experience

residual impairment

beyond the shortest

suggested time limits. The

lack of awareness or real

insight into one’s

functional impairment can

be a consequence of

cannabis use. In that

context, a person may not

experience ‘euphoria’ (as

mentioned in the Health

Canada Guidance), yet still

not function, respond or

react normally while

impaired by cannabis use.

2[sic]. A general practicing

physician is not in a

position to adequately

determine, simply

grounded on visual

inspection of the patient in

a clinic and a basic

understanding of patient’s

work, the daily safety

issues in a hazardous

workplace. Specialized

training in understanding

workplace hazards is

necessary to fully

understand the interaction

between cannabis

impairment and appropriate

work restrictions in a given

fact situation.

3. There currently are no

readily available testing

resources within the

Province of Newfoundland

and Labrador to allow an

employer to adequately

and accurately measure

impairment arising from

cannabis use on a daily or

other regular basis.

The arbitrator thoroughly considered the parties’ evidence submitted and concluded:


reason to refuse his employment. But,given the lack of reliable testing measures, there was no ability to confirm this. The arbitrator stated:Having found the increased safetyrisk amounted to undue hardship forthe employer, the arbitrator dismissed the grievance.


The safety hazard that would be introduced into the workplace here by residual impairment arising from the Grievor’s daily evening use of cannabis products could not be ameliorated by remedial or monitoring processes. Consequently, undue hardship, in terms of unacceptable increased safety risk, would result to the employer if it put the Grievor to work. As previously stated, if the employer cannot measure impairment, it cannot manage risk.

This article was written by Larissa Volinets Schieven and Lauren Jamieson of Emond Harnden Law. For further information please contactLarissa at 613-563-7660 ext. 230 or Lauren at 613-563-7660 ext. 236.

It was this final point that may havetipped the scales in favour of the employer. If the employer could be sat-isfied that the grievor was not impairedwhile at work, there would be no

the case until there are reliable technolo-gies that can accurately and effectivelymeasure impairment. While this deci-sion is certainly positive, employers arereminded that the duty to accommodaterequires an individual assessment foreach request for accommodation. Thiscontinues to apply in the context ofmedically-authorized cannabis use andsafety-sensitive positions.

In our viewThis case confirms that the increasedsafety risk arising from impairment inthe workplace can amount to unduehardship. This will likely continue to be


HELP

PING U BUILD



CONTACT MARTHA GEORGE AT 519-622-4822 X 123, OR [email protected]

ATTENTION CONSULTANTS, PROCUREMENT OFFICIALS AND FACILITIES MANAGEMENT PERSONNEL

Whether you are in the public or private sector, GVCA is here to help.We’ll help you unpack issues like various procurement methods, contractor selection, callingbids and awarding contracts, and in-depth understanding of the new Construction Lien Act. If you have a procurement issues you need tackled, just ask.

GVCA WILL FACILITATE A SESSION FOR YOU AT NO CHARGE. We will organize, facilitate and even provide the coffee.

EVENTS CALENDAR

January 17CTRL V (Virtual Reality) - hosted by the Leaders in Construction (LinC) group.

January 18GVCA 4th Annual Curling Bonspiel, Westmount Golf & Country Club

February 10GVCA Day at the Titans

February 26Annual General Meeting, Business Heritage Awards and Hall of Fame Award. Hacienda Sarria, Kitchener

March 23 – 28CCA Annual Conference, Bermuda

Note:To view a complete list of upcoming events and to register, please visitwww.gvca.org/calendar

EDUCATION CALENDAR

January 15Approved Working at Heights

January 15Bill 142 –The new Construction Act and Its Impact on You (SOLD OUT!)

January 18Approved Working at Heights - refresher

January 22*NEW!* Addressing the Epidemic: The True Costs of Mental Health /Addiction Issues in the Construction Industry

January 25Gold Seal Exam

February 7 & 14Construction 101 (earn 2 Gold Seal credits)

February 12Approved Working at Heights

February 12 & 19Construction Drawings and Specifications (earn 2 Gold Seal credits)

February 15Approved Working at Heights – refresher

February 22Navigating Multiple Generations in the Workplace (earn 1 Gold Seal credit)

March 6Bill 47 – Making Ontario Open for Business Act, 2018

March 19Bill 142 – The “new” Construction Act and Its Impact on You

NoteAll education and training courses are held at the GVCA offices at 25Sheldon Drive (unless noted otherwise). To view a complete list of up-coming education and to register, please visit www.gvca.org/calendar

REGISTRATION REQUIREDfor all courses and events. To register, or request additional information please contact [email protected] or call519-622-4822 X120 or go to: www.gvca.org/calendar.

ACL . . . . . . . . . . . . . . . . . . . . . . 13Alliance Roofing . . . . . . . . . . . . 6Ball . . . . . . . . . . . . . . . . . . . . . . . 7Battlefield . . . . . . . . . . . . . . . . 10Baywood . . . . . . . . . . . . . . . . . . 6Buildsafe . . . . . . . . . . . . . . . . . 27CLAC . . . . . . . . . . . . . . . . . . . . . 2Conestoga Roofing . . . . . . . . . 27Cowan . . . . . . . . . . . . . . . . . . . 11Cushman . . . . . . . . . . . . . . . . . .32

Delta . . . . . . . . . . . . . . . . . . . . 13Duncan Litton . . . . . . . . . . . . . 19Gallagher . . . . . . . . . . . . . . . . . . 9JDI . . . . . . . . . . . . . . . . . . . . . . 28Knells . . . . . . . . . . . . . . . . . . . . 14KW Doors . . . . . . . . . . . . . . . . 23LiUNA . . . . . . . . . . . . . . . . . . . .31Miller Thomson . . . . . . . . . . . . 25Rice Insurance . . . . . . . . . . . . . 20Strassburger . . . . . . . . . . . . . . 15

ADVERTISERS’ INDEX

Construction is complicated!


Highly trained, safety-conscious and skilled, LIUNA members are the right people for the job.

Employers know that LIUNA provides more comprehensive, advanced training for its members than any other union in Canada. LIUNA is committed to training and has created partnerships with employers including investments by our pension fund in P3 projects.

Hands-on training through the Construction Craft Worker (CCW) Apprenticeship Program is available for all LIUNA members to ensure a safe, productive workforce. Members are ready to work safely from their fi rst day on the job, making them a valuable asset to employers.

LIUNA represents more than 80,000 members in all sectors of the construction industry in Ontario including; industrial, commercial and institutional (ICI), residential, roads, gas pipeline, sewer and watermain, electrical power systems, demolition, utilities and heavy engineering.

Visit liunaopdc.org/affi liated-local-unions to fi nd a LIUNA local affi liate near you.

YOU NEEDWORK-READYEMPLOYEES. WE’RE HERETO TRAIN THEM.


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