The Ryan Report Let the market decide? Pg. 16
Creative Eye Bewitching Bay Pg. 18
Rain, rain, go away Permeable paving options Pg. 22
THE UNBEATEN PATH
Doing things differently has worked well for Paragon Design and Build. Page 12
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Power couple Nigel Furgus and Alyce Kupskay’s offbeat approach to building homes brings continued success to Paragon Design and Build.
Digital channels connecting you to critical information
Whether you like to read, listen or watch, Canadian Contractor has you covered.
DIGITAL EDITION ARCHIVES
Flip through the digital versions of your favourite past issues of Canadian Contractor. All available in the digital edition archives at canadiancontractor.ca.
THE HAMMER
It’s the question on all our minds: What do inspectors want? Steve Nason, a building official in Rothesay, N.B., has some answers. Tune in for his tips on how contractors can save headaches by using quote sheets.
VIDEOS
Canadian Contractor associate editor Sukanya Ray Ghosh interviewed several prominent women from Canada’s construction industry as part of our Women in Construction event. Find these amazing conversations in our new Women in Contracting section.
SOCIAL MEDIA
Follow @CanConMag or look us up on Facebook to add Canadian Contractor to your daily diet of online interaction.
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(Online) Editor Patrick Flannery PFlannery@annexbusinessmedia.com Associate
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Account Coordinator Barb Comer BComer@annexbusinessmedia.com
Martin McAnulty, Vice President Sales MMcAnulty@annexbusinessmedia.com
Scott Jamieson, COO sjamieson@annexbusinessmedia.com
USING YOUR BRAIN
Been reading an excellent book called The Master and His Emissary by Iain McGilchrist. It’s all about the differences between the right and left hemispheres of the brain. As I read it, I keep thinking of ways this information applies to the business world.
Most of us know that the left side of the brain controls the right side of our bodies and vice versa. But the differences in what the hemispheres do goes much deeper than that. The left side is where all our focused attention happens. It’s the side that looks at things, identifies them, makes decisions and plans action. It’s also where language is turned into speech – we can still understand language without using the left side of our brain, but we can’t talk. The right side of our brain is where the brain does all its “background” work. It’s probably what Freud was talking about when he described the subconscious. It’s actually more aware of our environment than the left side as this is where all the information from our senses is collected, filtered and prioritized for importance. Thus the title of the book: the right brain is the master who knows about everything going on and comes up with the innovative strategies, the left side is his emissary who acts on his memos but thinks he’s in control of everything.
What on earth does any of this have to do with your business?
Well, one way is in how we think about marketing. A lot of people expect advertising to work like a lever: you put out ad X and the phone rings Y times. When that doesn’t happen, they become frustrated and conclude advertising doesn’t work. That’s left-brain thinking. Directresponse advertising is a thing and does work, but it has to be executed properly and represents only one of several advertising strategies. Another kind engages the right-brains of its audience: branding. This sort of advertising inserts your company into your market’s environment, making its message and character part of the background your prospects live with every day. Once this is accomplished, when decision time comes for your clients, they are much more likely to direct their left-brain’s attention to your company.
One of the reasons for this is that your right-brain is better at noticing new things and thinking new thoughts. Remember, it’s where information is collected and assimilated; your left-brain is engaged in actually rejecting irrelevant information, narrowing your attention and sorting through the data to extract the useful and actionable bits. The left-brain deals with what you already know and actively prefers to focus on that information, resisting the confusing and distracting addition of potentially irrelevant detail.
So when employees resist change in your organization, they are letting their left-brains run the show. This is perhaps an inevitable result in the parts of your organization where problem-solving is important and people who are good at problem-solving are employed. But an organization also needs out-of-the-box thinking, acceptance of novel ideas and broad awareness of the business conditions both internal and external. So in business, there needs to be a master who considers all factors and contemplates all possibilities as well as emissaries who attack problems and drive specific tasks.
In short, in business, we need to think with our whole brains! cc
By Patrick Flannery Editor
” The right brain is the master who knows about everything going on and comes up with the innovative strategies, the left side is his emissary who acts on his memos but thinks he’s in control of everything.
The Voices section in this issue is dedicated to the incredible women in the renovation and home-building industry and all the people who support their growth. In honour of International Women’s Day, celebrated on March 8, Canadian Contractor requested the industry nominate all the amazing women who work with us. The response has been phenomenal, with an outpouring of heartfelt emails. We have shared a few of them here. The others can be read in the “Women in Contracting” section of canadiancontractor.ca.
Far-reaching leadership
Greg Graham, COO of Cardel Group of Companies says that colleague Tanya Buckley always has a smile.
I would like to nominate Tanya Buckley, vice-president of sales and marketing for Cardel Homes, for your Women in Construction feature. Tanya is a 10-year veteran in the residential land development and home building industry. While her title says vice-president of sales, her contributions and leadership are far reaching throughout the organization. A leader of the executive team and serving as a back up for the president in Ottawa, she stickhandles and leads the strategic initiatives for operational efficiency within the division. Not only is she leading the growth of the organization, she is active within the land department, construction department and operations. You can find Tanya on site performing framing walkthroughs, meeting with our land team on lot designs and then popping into the sales centre to meet with her sales team and provide the necessary coaching and mentoring to help them succeed. Finally, she is engaged with customers and ensures Cardel delivers an exceptional customer service standard. A consummate professional who always has a smile, she is engaging, loyal, dedicated and committed to the success of those she works with and the corporation she represents.
– Greg Graham
A pure perfectionist
Vincent Martinez says that Ana Sofia Estrada from Portico Dream Builders is extremely detail-oriented. I would like to nominate an incredible woman for the women in construction. Her name is Ana Sofía Estrada, better known as Sofi. She studied in the Centre for Skilled Development in the city of Burlington, Ont., in the WIST program’s women in skilled trades and became an excellent carpenter – so detail oriented, a pure perfectionist. Mother of two boys, she manages to balance her carpenter job and her mom’s job as well. We all know that construction trades are sometimes hard to deal with for women because is a “man’s trade” or “man’s job,” but she has demonstrated again and again that she can manage the stress, the duties and the environment of a construction site. At the end of the
day, she finishes the job and goes back home to her family. I really appreciate the opportunity to be working with such a professional and excellent person as well in our small renovation company, Portico Dream Builders. I think it’s important to recognize the roll of women in construction and the renovation industry and I want to thank you for creating the nomination for women in construction.
– Vincent Martinez
Holding everyone together
According to Nigel Charlton, colleague Renee Taylor from Button’s Heating and Air Conditioning is a rock for all around her.
It only took me a mere nanosecond to think of a woman so very much deserving to be nominated for the Women in Construction event. Her name is Renee Taylor. Renee is my friend, my co-worker…my boss. I have an incredible amount of respect and admiration for Renee. Please read on and you will not need an ounce of persuasion. Renee started with Button’s Heating and Air-Conditioning, an award-winning, family-owned and -operated business, celebrating 43 years, 17 years ago. Renee’s father and two uncles were the owners of the company. Although Renee’s employment was to be a temporary stint, she is now an owner. Over the years Renee took on many tasks and spearheaded numerous undertakings that directly impacted the growth of the company. This may seem normal, not a big deal, for the daughter of one of the owners of a company… and yes, I would certainly agree. However, the past three years have unquestionably presented enough hardships in Renee’s life. It started when her hero, her father (one of our company’s owners) was stricken with cancer. During Joe’s battle, his wife Faye, Renee’s mother was also diagnosed with cancer. Renee was an absolute rock, looking after both of her parents…all while being an integral part of our company. Sadly, and within two years, Renee lost both of her parents. Adding to this, a childhood friend of Renee’s suffered a stroke. Yes, you guessed it…Renee took on the responsibility of caring for her friend and assisting with her rehabilitation as well. How Renee was able to get herself out of bed each morning is still a mystery to those who
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know and are close to her. Renee continues to be a principal component in our awesome company. Most would believe it would only be someone who possesses a heart of stone to be able to endure what Renee has over the past few years and continue on in her capacity. It is rather the opposite. Renee is very kind-hearted, kindred-spirited, jovial, and 99.9 percent of the time, a pleasure to work with.
– Nigel Charlton Award-winning all-rounder
Lindsay Leney from Your Local HVAC Team has had a red-hot career, says Norah Fountain, executive director of Muskoka Lakes Chamber of Commerce and Visitor Information Centre.
Myself and three other Chamber executive directors in Muskoka (along with a separate customer who uses her service as well) would like to nominate Lindsay Leney of Your Local HVAC Team for this recognition. Lindsay started up her company in March 2017. Your Local HVAC Team is focused on residential work with some light commercial work including new construction, retrofits, and service. It’s based in Bracebridge, Ont. On moving to Muskoka, Lindsay was looking for a niche that she could apply her industrial background skills to and consistently heard that there was a need for a reliable and responsive HVAC company. Her family-based company has grown in leaps and bounds. Her husband is the lead HVAC technician and they’re always hiring and training more contractors. Lindsay has extensive knowledge in providing excellent customer service, growth in building business-to-business relationships, modeling and promoting effective communication and developing and training others to achieve success.
She is also a full-time mom to two children: Cooper and Nora. Previous to becoming a mother and starting Your Local HVAC Team, Lindsay worked as a general manager for a large industrial supply company. A direct quote from Lindsay: “A huge part in my growth has been in surrounding myself with other like-minded Boss Babes and people who understand the journey. Find your tribe, ladies.” While Lindsay doesn’t do the HVAC maintenance or repair work herself, she handles all quotes and is an inspiration to her crew and to other women in the trades. We think the secret to her success is how she has managed to weave stories of her family in with stories of actual HVAC work. One moment, you see her and her husband fishing with their kids on a few well deserved hours off and the next there’s a cautionary tale of a furnace improperly installed that they’ve fixed or a picture of “Slamming out a new build in Haliburton!” She doesn’t hide from the fact that she is a stay-at-home mother who runs a very technical trades business. She has been featured as a speaker at small business conferences in Muskoka and we are going to have her speak at an International Women’s Day event at
which we hope we can surprise her by telling her that she is being featured by Canadian Contractor too! And for three years in a row, Your Local HVAC Team has won the Diamond Award for Best HVAC Contractor and Best HVAC Services in Muskoka. Lindsay is also committed to making sure all her technicians are part of the family. She offers a full company benefits package, overtime pay, and opportunities for career advancement for her technicians. As for the “work with” part, I’ve personally counted on her service at our office when our furnace went down, and have connected her with several contractors and property managers who rave about the service she provides. I write on behalf of myself, and the Chamber executive directors of Gravenhurst, Huntsville and Bracebridge. On behalf of Brenda Rhodes (Bracebridge Chamber of Commerce), Kelly Haywood (Huntsville/Lake of Bays Chamber of Commerce), Sandy Lockhart (Gravenhurst Chamber of Commerce) and Greg Murphy (vice-president of Muskoka Lakes Chamber and president of Clear Water Property Management), who considers Your Local HVAC Team his go to HVAC service Provider.
– Lindsay Leney
A journey of perseverance
Lisa Sobry narrates how Marva McMillian of Extreme Quality Restoration went from reception to project manager. I nominate Marva McMillian for this award. Marva began her career as a receptionist back in 2006. By 2008 she was a project manager having worked her way up through the ranks in one and a half years. She was able to become a female mentor in the restoration and construction industry, as at the time of her employ as a new project manager the role of a female project manager was not common. She became one of the 12 women working in that capacity in Canada that year. Due to her perseverance and genuine kindness she has assisted, supported and recommended many talented women, allowing them the opportunity for financial and exponential career growth. Today she is a project manager with Extreme Quality Restoration and happy with the direction her career has taken. Marva is a very patient woman even under pressure. She has a positive upbeat personality which makes her very easy to work with. Most of her career revolved around raising three children on her own, supporting herself, and the demands of a busy project manager. When I asked her how she managed she responded, “Some days were tough, but I managed to work through them. I met the right people at the right time.” Marva should be featured because despite her personal experiences she has worked hard to get where she is today. She empowers other women, who struggle similarly, to succeed.
– Lisa Sobry
Supporting women in construction
According to James Wilson, his boss Tania-Joy Bartlett from New Beginnings Contracting Services has been slugging it out to get things done.
I have a very special nominee I’d like to talk about, my boss. Let me give you a little background. She is a master electrician, heavy machine operator and truck driver. She opened her business three years ago as an all-inone contracting service. She promotes women in the construction industry and will help to get women kickstarted in construction. To see her you would never imagine she was in construction but during the day, she is right along beside the rest of the crew slugging it out to get things done. I would like to nominate Tania-Joy Bartlett, owner of New Beginnings Contracting Services, Dunsford, Ont. Best place I’ve ever had the privilege to work for and I really think she deserves this nomination and hope she is chosen so everyone can see the good this woman brings each and every day.
– James Wilson
Pursuing her passion
Paulina Barnes, senior director of business development at Mazenga Building Group says that colleague Farah Jhuman is at home in the woodshop
I am nominating Farah based on her exceptional skills as a project manager, overseeing three key projects for Mazenga Building Group. She manages multiple construction projects ensuring quality, schedule and budget requirements are controlled and documented. She also manages the procurement and tendering of projects by assessing drawings and specifications, including drafting division-specific scopes of work, issuance of bid documents, leading tender closings, completing bid analyses and trade interviews, executing client recommendations, issuing letters of awards, and reviewing subtrade contracts. In addition to Farah’s experience as a project manager, she also worked as an estimator with Gillam Group. Farah was also a professor at George Brown College in winter 2016 for project management in the Building Renovations Technology advanced degree program. The program focused on construction management in the residential sector including management of trades, financials, creating business plans and proposals, project administration, scheduling and budgeting. Farah was also an interim teacher at Albert Campbell C.I. and Central Tech C.I. for construction engineering. In grade 12, Farah spent endless hours in the guidance counsellor’s office trying to “find her passion”. Her parents had the expectation that she would go to university. However, the woodshop was the only place that she truly wanted to be, but she never considered it a
viable career option until she met an inspiring teacher that challenged all her preconceived notions. Farah was having a challenging day, as most teenagers do, and decided to go to her safe place – the woodshop. She told Mr. Pedersen that she was feeling like a useless piece of scrap wood. He presented to her a scrap piece of wood and Farah confirmed that is how useless she felt. Twenty minutes later, Mr. Pedersen returned with the same offcut shaped into a whale (it even had eyes) and he said to Farah, “even scrap wood has potential.” That moment, Farah realized that she wanted to pursue a career in construction. In the weeks that followed, Mr. Pedersen and Farah researched a variety of programs in the construction industry. At that time, she had no idea that those programs or careers even existed, but she knew it was her natural next step. She submitted her application to George Brown for Building Renovations. That September, Farah started her education in the construction industry, forming part of the two percent of women in the program. Her mom kept all her university acceptance letters in case she changed her mind (she still has not!).
– Paulina Barnes
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KITCHEN ESSENTIALS
Industry groups tout training, infrastructure investment
The Honourable Monte McNaughton, Ontario Minister of Labour, Training and Skills Development, has announced the Skills Development Fund, a new opportunity for businesses, union leaders, and training providers to submit their ideas on how to relieve pandemic-induced barriers to hiring, training and retaining workers. The government of Ontario is dedicating $115 million to this fund and applications are now open. As an organization dedicated to building the province’s future skilled workforce, Skills Ontario has applauded this initiative.
“Skilled workers are the backbone of our society,” said Ian Howcroft, CEO of Skills Ontario. “It is crucial to ensure that Ontarians are supported while they pursue their careers, and
Skills Ontario applauds the inclusion of employers, apprenticeship training delivery agents, and more, in this project. The pandemic has had an enormous impact on everyone, but particularly those who have lost work and employment opportunities. This new fund will help address this by offering assistance and support– it’s an important step on our road to economic recovery.”
A coalition of construction sector associations have allied to urge the federal and provincial governments to deliver on infrastructure investments. The newly formed Building for Recovery coalition includes Associated Equipment Distributors, the Canadian Construction Association, the Association of Consulting Engineering Companies and the National Trade
Building permits keep breaking records
January rang in the new year with a record high total value of building permits issued, Statistics Canada reported, rising 8.2 percent to $9.9 billion and surpassing the previous record of $9.6 billion set in April 2019. These gains were driven primarily by the residential sector. The value of permits issued in the residential sector increased 10.6 percent to $7.1 billion in January, rising past the previous peak of $6.5 billion posted two months earlier. Provincial highs were reported in Ontario, Quebec, New Brunswick and Manitoba. The majority of the rise in the residential sector was attributable to single-family homes, which climbed 15.1 percent to a record $3.5 billion – the eighth increase in nine months. Continuing the upward trend observed since October, the value of single-family permits issued in Quebec soared, rising 40.3 percent. Much of the gain came from regions outside of cities. Multi-family permits increased 6.5 percent to $3.5 billion, mainly driven by higher construction intentions in Ontario (up 17.1 percent), where several permits in excess of $100 million were issued for condominium apartments in Toronto. Conversely, the value of multi-family building permits in Quebec fell for a fifth consecutive month in January. The total value of permits issued for non-residential buildings rose 2.6 percent to $2.8 billion in January after a 10.8 percent drop in December. Following three consecutive monthly declines, industrial permits bounced back to average 2020 levels, increasing 31.7 percent to $535 million
Contractors Council of Canada.
“The construction sector is ready to rebuild Canada’s economy but all levels of government must deliver on infrastructure investments now to get projects started,” stated Brian McGuire, AED’s president and CEO.
“Despite billions of dollars of existing infrastructure commitments, these investments have been slow to roll out. Infrastructure Canada’s website shows that of the nearly 17,000 approved projects, fewer than 900 have received funding,” said John Gamble, president and CEO of ACEC.
“With federal and provincial governments working in collaboration with Canada’s construction sector, we can ensure that we build back a stronger, more resilient country from the pandemic,” continued Mary Van Buren, president of CCA. “The time is now to deliver on billions of dollars of investments so we that can start to rebuild our economy.” cc
Total value of building permits in Canada
in January. High-value permits for an Amazon warehouse in Lachine, Que., and for two Eglinton Crosstown light rail transit stations in Toronto helped reverse the downward trend. The value of commercial permits increased 3.3 percent to $1.5 billion. Six provinces posted increases in this component, led by Ontario (up 14.7 percent) and Quebec (up 20.4 percent). Within the institutional component, municipalities issued permits worth $781 million, 11.8 percent lower than December. Values in Newfoundland and Labrador returned to typical levels following a $170 million hospital renovation permit issued in Corner Brook the previous month, pushing the national total lower. cc
EllisDon embraces COVID-19 Rapid Antigen Testing Pilot program
In a continued effort to ensure the highest level of workplace safety, EllisDon has embraced and implemented the Ministry of Health’s COVID-19 Rapid Antigen Test Pilot project in Ontario. Working with the Ministry of Health and the Ministry of Labour, Training and Skills Development, EllisDon executed this program, voluntarily testing workers on-site starting December 2020.
With COVID-19 cases rising across the province, EllisDon proactively expanded rapid testing to other job sites, and changed their protocol from voluntary to mandatory screening as an enhanced measure to keep employees and workers safe while remaining operational. For worksites with mandatory testing, this protocol will apply to all EllisDon project staff, site personnel and subcontractors. Workers are able to take the Rapid Antigen Test with an onsite professional through a signup process and receive their results within 15 minutes. EllisDon’s decision to move to a mandatory Rapid Antigen Test will help to limit potential workplace spread and transmission. Currently, EllisDon is focusing on the Rapid Antigen Test Pilot on sites with large numbers of personnel and regions such as the GTA where there are high numbers of COVID-19 cases within the community. As the pilot allows, EllisDon plans to scale up mandatory testing to other sites with continued government support. cc
Home Construction Regulatory Authority begins operations
A new Ontario regulator, improving protection for new home buyers, started operations this year. The Home Construction Regulatory Authority is now responsible for regulating and licensing the people and companies who build and sell new homes in the province. In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and manages the Ontario Builder Directory – the official source of background information about each of Ontario’s more than 5,000 new home builders and vendors. The OBD provides current information on each builder and vendor’s licence status and specifics such as whether they have had any convictions, the number of homes they have built and their warranty history. It also lists illegal builders and provides details about charges and convictions to better inform and protect consumers. The HCRA is also implementing a streamlined complaints process, providing a clear, straightforward way for a new home buyer to raise real concerns about a builder or vendor’s conduct. An independent regulator, the HCRA takes over the licensing function from Tarion. Previously, Tarion was responsible for both licensing
and warranty administration. Tarion will continue to deliver Ontario’s new home warranty and protection program. A separate licensing body was recommended by a major review of Ontario’s home building sector. Recognizing that some consumers and builders may not immediately know where to turn, the HCRA and Tarion are committed to a “no wrong door” approach, seamlessly directing stakeholders to the right place to deal with their specific issues. cc
Groupe Turcotte and Home Hardware acquire Patrick
Morin
Groupe Turcotte and Home Hardware Stores have announced the acquisition of Quebec-based home improvement retailer, Patrick Morin. The deal will see Group Turcotte and Home Hardware Stores purchase 21 stores and one distribution centre in the province of Quebec, effective February. Groupe Turcotte is owned by Louis Turcotte, an independent and experienced Home Hardware dealerowner. Turcotte has been in the Quebec home improvement industry for over 30 years.
“We are honoured to have worked with Patrick Morin, a company with a strong reputation and deep roots in communities across Quebec,” said Louis Turcotte, dealerowner of Groupe Turcotte. “As we carry on the legacy of a truly Québécois company, Patrick Morin will continue to operate with a head office in the province and in partnership with Home Hardware, an independently owned and operated Canadian company. It is our priority to provide excellent service and products to the communities in which we are located.”
Founded in 1960, Patrick Morin is recognized as a leader in the construction and renovation industry in Quebec, providing quality products and services to consumers and contractors. The company has 1,700 employees.
“We recognize that Quebec is a unique market and we believe that partnering with such a strong, made-in-Quebec brand will continue to give us a competitive edge as we work with Groupe Turcotte and the Patrick Morin team to strengthen our merchandise programs,” says Kevin Macnab, president and CEO of Home Hardware Stores. “This dealerfocused transaction strengthens the program for all Home Dealers and Patrick Morin by leveraging Home’s national scale with Patrick Morin’s position and expertise in Quebec.”
Patrick Morin stores will continue to operate under the existing Patrick Morin banner and branding.
“This partnership demonstrates our commitment to growth in the province of Quebec and the strength of our independent dealer-owned and operated model,” says Christine Hand, chairman of the board at Home Hardware Stores. “We look forward to working with Louis Turcotte, an experienced entrepreneur, Patrick Morin, a well-respected retailer, and our strong base of Quebec dealer-owners to support our mutual growth and success.” cc
Coming from non-construction backgrounds helps Nigel Furgus and Alyce Kupskay approach home building with fresh perspectives.
All that husband-wife duo Nigel Furgus and Alyce Kupskay wanted was to move into their perfect custom-built dream home. The project was duly given to a builder. However, it was not a smooth ride. The couple wanted to make changes but every change came with a big cost. They weren’t impressed with the process either. The desire to build better homes with better processes led to the birth of Paragon Design and Build. The company, established in 2005, specializes in infill developments, be it custom homes, duplexes or multifamily units.
After Paragon built its first custom home, Nigel and Alyce’s real estate careers took off and have been picking up steam ever since. They have built furnished luxury rentals and many multi-family units. Paragon builds 20 to 30 duplexes in a year at present while also turning out five to 10 custom homes. The best part is, they rarely need to list their inventory. Almost 100 percent of their homes are sold before the project is even finished.
Something different
How was Paragon able to gain this level of success? Nigel and Alyce credit it to a bit of luck and a lot of hard work.
“We’re life partners. We have two young children. We are constantly working day and night. The first four years were especially hard work. We do not come generational money; we have built everything up ourselves. And now, we’re finally seeing the hard work pay off. We have 10 years of work ahead of us already at this point,” says Alyce.
Surprisingly, neither Nigel nor Alyce started their careers in the construction industry. Currently the director of finance and operations, Alyce is in charge of all the day-to-day operations of the business. She has a strong finance background having worked in accounting and bookkeeping for more than 10 years. The president of Paragon, Nigel, had more of a customer relationship role in his previous profession. Since that
THE UNBEATEN PATH
Doing things differently drives the success of Paragon Design and Build.
By Sukanya Ray Ghosh
is his strongest point, Nigel drives all sales decisions and heads all real estate development at Paragon.
“I was in the concert industry. I was involved in brokering concerts. With that comes a lot of networking and building relationships, especially when I was brokering concerts on a global scale. So, Alyce brings in the operational and organizational mindset into the business and my ambition, motivation and vision helps in driving business,” explains Nigel.
“What we have been told often by industry leaders is that we have really brought in a different element.”
in the city of Winnipeg for over 20 years. He had been a constant mentor to both of them until his recent passing. As a hobby, he had built 200 houses. While Alyce had an insight into the industry early on, Nigel had the opportunity to learn from him when he developed an interest in the field.
People who come from construction families tend to continue doing things the same way that earlier generations did. They’re less inclined to try new approaches to the business, notes Nigel.
“What we have been told often by industry leaders is that we have really brought in a different element. We are known for our branding, our marketing and our transparency in the industry. We often help publicize our suppliers and partners as much as we do so for ourselves,” explains Nigel.
Although they come from different backgrounds, they did have a connection to the construction industry. Alyce’s father was a civil engineer and helped build bridges and roadways
“I started learning the industry when we built our first home. And then her father introduced me to kind of the greater good in construction. He was always a ‘do it once, do it right’ type of guy. He always taught us never to cut corners,” says Nigel.
Coming from a non-traditional background in home-building has been advantageous for Nigel and Alyce in driving the success of Paragon.
A lot of companies hold on to industry secrets or things they consider as secrets of the trade. But Nigel and Alyce prefer to keep an open book.
“We are focussed on becoming innovative industry leaders, the next generation of the construction industry,” says Nigel.
Quality and relationships
Quality has been the key focus for
Dealers share and participate equally without the influence of any external shareholders. Harness our massive buying power, comprehensive distribution, national
Paragon for all of its projects. Nigel and Alyce have observed that a lot of custom home builders have a base standard that they present to their clients.
“The standard entry-level product that we offer is often what is offered as premium products in the market. We don’t build anything unless it is an ICF Foundation. Also, whether it is a small scale infill home or a large scale custom home, we won’t build anything that does not have a structural wood floor,” says Nigel.
When forming relationships with clients, Paragon constantly reiterates the need for quality.
Nigel and Alyce take special care in educating them to help them understand why certain things are necessary for the homes that they build. If customers need to find room in their budget, the qualitative elements are never compromised. The room is found elsewhere.
“The quality is what gives us our market advantage. Because we come from this value engineering background, we’re able to transfer some of those savings to the client in areas where they wouldn’t even know
that there were savings available. We try to bring in high quality for good value,” explains Nigel.
Paragon Design and Build is an infill developer. All projects are built in developed communities. This is a lot more complex process than building a custom home on a greenfield lot or green dome, say both company heads. They further add that with infill structures, every site comes with unique set of challenges.
“This could be shoring of the site. You want to excavate the site while protecting the neighbouring properties. Another challenge is that the community is sensitive to new construction and it is our job to keep it happy. We want to protect trees, we want to bring value to that neighbourhood,” says Nigel.
It is a balancing act for Paragon. The company makes it a point to explain to everyone that a construction will take place. Paragon’s team will tear down a house and dig a hole. There will be some mess. But at the end, this will be a property that increases the collective value around it.
“I think we do a great job of consulting with the community and
maintaining clean sites and building a quality home,” says Nigel.
To explain how Paragon handles infill building, Alyce shares the story of a situation they faced. “The shoring we did for one of our custom homes damaged some of the neighbouring property. Some of it was eroded and some of its landscaping was lost. We right away reassured the neighbours that we would take care of their landscaping and put it back to how it was before we came in. Come spring, we gave the property a new fence, landscaping and we fixed up anything else that they needed as well.”
For Paragon, building a relationship with the neighbours in the community of utmost importance. The team makes it a point to visit as many neighbours as possible.
A project to remember
For Nigel and Alyce, the most memorable custom home created by Paragon is its 204 Waterloo Street project and it was created during COVID. The project was able to set a record in the area in terms of price per square foot and total purchase price. The custom home is built in one of the
Nigel and Alyce’s most memorable project is a custom home with a traditional character that has modern functionality.
most in-demand areas in the city. Paragon tore down the entire property and built a $1.2 million-dollar house there. And even with COVID, the house sold on offer date.
“We don’t build anything unless it is a titled ICF Foundation.”
Alyce says that this project was most memorable for her because Paragon’s vision was to tear down an old home and build a brandnew custom home with all the classic old looks inside and outside. The project was a brand-new home with a traditional character that had all the modern technologies in the building as well.
“We built it on an ICF with a structural floor. But when you walk into the home, it looks like it’s been there for 100 years. It has a red brick facade, oak hardwood, there’s a lot of wainscoting. There are little details throughout the house like the brass fixtures, the crown molding and the tile in lace. In the local paper, the house made it to the front page of the Sunday homes section,” says Nigel.
Unfolding plans
As Paragon typically does not go to the market to sell its homes, customers are usually the ones who reach out to them first. However, the project planning does not begin until the customers themselves are interviewed.
“We interview them and determine whether the customer’s project is a good fit first. Once that is done, we get the client’s wish list. And then we consult with our in-house architect, and designer. Then, after all that, we can finally make their vision come to life,” explains Nigel.
This starts with creating conceptual elevations and conceptual floor plans. Paragon then goes offers a full design package, discusses pricing and sets the contract.
“We like to present an all-in price. And we like the client to be in charge of any changes in price. And we hold the price from there. We’ve never veered off from that,” adds Nigel.
Since Nigel and Alyce have had their encounter with unsatisfactory processes, they have ensured that their clients don’t face the same ordeal. Paragon’s designers specify all of the materials and present them to clients so that they do not need to meet each supplier individually.
“We present all the materials to the client and finalize all pricing so that we are able to offer them the fixed price contract. If the pricing is a bit off, Nigel comes in and value engineers things. We find cost savings for them or switch materials around before we finalize the contract. Once the build starts, the client is at ease. And we are able to schedule walkthroughs at certain times throughout the build,” explains Alyce.
Paragon Design and Build’s success story is still being written. Both company heads plan to continue with what they know best. This means, as of now, they have no plans to enter the renovation market. At one point, Nigel and Alyce had even planned on winding down the custom homes segment and focus on larger scale projects. However, the beautiful infill project they built in Waterloo ramped things up again. cc
LET THE MARKET DECIDE?
By Steve Ryan
“Justlet me run my business. The market will decide how capable I am.” That is a fundamental principle of our economic system. Most of us want to determine our own fate in business. We believe that fair competition is the most effective way to determine which businesses succeed and which don’t.
Customers will eventually reward those who serve them well and they will stay away from those that don’t.
Is that the right way for the residential construction industry to work? If ever there was a question that gets a qualified “yes,” this is it.
The hazard in letting market dynamics rule who wins and who loses is the very notion that there will be losers. In most industries we can allow new entries and even established players to test their abilities by giving it their best shot. If I start a restaurant and my food is good, I promote it well and my pricing is right, consumers reward me by coming back and telling others. I succeed. If I don’t get those things right (Perhaps my food just isn’t that good), consumers don’t come back. They discourage others from coming and I fail. It is a harsh and costly lesson for me, but it certainly separates the winners and losers efficiently.
The key in letting market forces decide, however, is that it happens through customer experience with the things they buy. Now if I wasn’t very capable in setting up my restaurant, I might lose a lot of money, but that goes with the territory. I lost my bet, because my customers didn’t get what they paid for. Some of them got a bad meal or perhaps some had their big date spoiled. The key here is I lose because my customers lose. But with a restaurant (or retail store, or delivery service), each customer suffers a modest loss in the process of me mismanaging my business. Individual consumers weren’t exposed to life-altering risk with their buying decisions.
That calculus simply doesn’t apply to residential construction.
The point here is: If you find yourself complaining that you should just be left alone to run your business the best way you see fit, you are wrong. When it comes to home construction where customers might be risking their financial future on whether the job gets done correctly, you don’t have the option to learn by trial and error. Customers aren’t simply risking a bad meal or shoes that don’t fit. By the time the market determines that a contractor wasn’t up to the task, people’s lives get ruined.
Let’s be clear that this is in no way meant to suggest that contractors are always to blame for a failed project. Certainly, things can go sideways because sometimes the client was a train wreck from the outset. Even here though, your other, more conscientious customers should not be a hostage to your ability to manage problem clients.
Let’s also be clear that this is not to suggest that market dynamics have no place in residential construction. This is where we come to that qualified “yes” mentioned in the first paragraph. Of course a contractor deserves greater success if they do better work, more efficiently or otherwise do a better job for customers. But there are base line capabilities that all contractors must bring to the game, or they aren’t yet ready to participate. Those essential skills are not simply knowing how to build. The thing that really determines whether you are ready to compete without putting customers in harm’s way is your capacity to operate as a professional. Before it’s fair to just let you run your business, it is critical that you can in fact run a business. In residential construction, customers can’t afford to find that out the hard way.
Is this a call for outright government regulation? There are actually quite a few contractors who feel that way. Contractor licensing as it has been implemented in Canada is all over the map and so far a clear solution hasn’t emerged. Before defaulting to government regulation, perhaps it’s time for the industry to manage itself through clear professional standards that have meaning and value to the buying public. But that is a topic for another column. cc
Steve Ryan is the founder of MMI Professional Services. MMI is committed to the success of contractors by helping them develop the business and management skills they need . For information on ways to run a better building business contact the writer at steveryan@mmiproservices. com
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BEWITCHING BAY
How Discovery Dream Homes created its challenging Nadi Bay project.
By Gordon Wornoff
Discovery Dream Homes typically wins three or four awards per year for their meticulously designed, engineered, and CNC-cut log or timberframe homes. In 2019, the company bagged a trifecta in the “Manufactured Home” category from
the Peterborough and the Kawarthas Homebuilders’ Association (PKHBA) Housing Design Awards.
They won “Best Home Over 2500 square feet,” “Best Home Under 2500 square feet,” and “Builder of the Year.”
Canadian Contractor spoke with Kirk
Figueira, long-time design consultant and associate at Discovery Dream Homes about its project, Nadi Bay, in Haliburton, Ont., that earned the company “Best Home Under 2500 square feet,” from the PKHBA Housing Design Awards.
BEWITCHING
How did this project originate?
It’s a custom design. The client is an urban planner from Toronto and I met him at the Cottage Life show in Toronto. We got a good relationship going and so I visited his lot. I brought out the design team. We got a lot analysis and gave
him a nice site-specific design for his property.
The site was very challenging. It was a sloped lot, all trees and all rocks where we wanted to put the foundation. So we had to cut down all the trees, and set them aside for him to use at a later
date, remove all the stumps, blast all the rocks out, put the foundation in and then we were able to build his home.
Site preparation took about a month and then construction ran eight to 10 months. Eight-inch poured foundation, all footings were pinned right to
bedrock so we didn’t have to do any frost walls.
What were the clients’ priorities?
The client gave us a photograph they took while they were out in Lake Ontario of a home on the Scarborough Bluffs. And they really liked all the glass. Floor-to-ceiling, side-to-side, all glass.
They gave us all the information and criteria they wanted. We had previously built a modern-style home on a neighbouring lot. They asked for something similar to the modern home, but wanted to incorporate the glass effect they had fallen in love with on the Scarborough Bluffs.
They were fantastic to work with. They knew what they wanted and they
grey and black elements, but all white otherwise. Open-concept.
There’s back-to-back beautiful granite fireplaces, so in the great room we have a fireplace and when you go to the screened-in room, you have a woodburning fireplace in there as well.
Gorgeous. You mentioned floor-toceiling glass on the front of the home. Was that tricky to design?
made decisions pretty quickly. When the project was completed, they sold their house in Toronto, got a small apartment and now basically work full-time from their cottage in Haliburton.
Can you describe the layout and details?
We created a master bedroom on the main floor, three bedrooms in the basement walkout, all open concept and it flows so nice between the kitchen, dining room and great room. And we put in a screened-in Muskoka room to escape the bugs in the spring.
The exterior entry has some modern elements and some cedar slats. From outside, you see maintenance-free grey siding and black timbers. The interior is stunning. It’s very modern. Some
A number of years ago, before they got stricter on the EnerGuide 80, they allowed for 22 percent of glass-to-wall ratio. Now it’s down to 17 percent and we were within that ratio, but we have to be careful when designing homes these days that we have a lot of wallto-glass ratio and if we fall under that we have to get an energy audit done independently. We may have to upgrade the insulation or the furnace, the hot water tank or roof insulation to make up for it.
What are some timeless design features? The layout of our traditional custom homes usually follow this formula: A Cape-style with a wing. We’ve always had a centre portion with a great room and an entry. Then off to the one side is the kitchen and dining room, and off to the other side is the master bedroom and ensuite wing.
What I’m finding more in the last five or six years is that everyone wants the modern look. Glass everywhere, floor-to-ceiling, open concept everything from the kitchen/dining room into the great room. So you always have views of your guests or your family while you’re cooking, eating, or enjoying the fireplace. Those seem to be really key these days.
We’ve always done open-concept, but the modern-style homes have really taken off. Eighty per cent of the homes I do these days are modern-style. And the rest is the more traditional Cape Cod home or a conventional cottage.
How are you able to incorporate energy efficiency into log homes?
Log homes are actually very energy efficient. When you heat up the log home, the log mass retains the heat on the inside. When you are building a standard two-by-six wall, you have to pack it full of insulation to get an R-value. Our log homes have a tongue-and-groove system. We use two butylene gaskets and a foam gasket. We seal the entire perimeter, we clamp it down with a through-rod technology. All windows and doors are sealed with dowels and insulation. Our log homes are pretty efficient.
We have a YouTube video that shows
how our log homes get put together; it’s called “Log Home Assembly.” It’s got over five million hits. We get inquiries from all over the world because people just seem to love the way our log system gets put together. It’s completely airtight. You don’t have to do any chinking, which you have to do on log homes of the past, to fill the separation that occurs between logs.
With our timber frame homes we can do structural insulated panels, or we can do standard construction and do blown-in, or Blow-in-Blanket, or spray foam. A lot of our homes are very, very energy efficient and if someone wants a net-zero home, we can design them one.
Has the company always focused on high-performance building?
Ray King (the company’s president) is an incredible individual. He has taken all the types of construction we do to another level. He’s always finding new ways to improve the efficiencies of our homes. Meanwhile our competitors have just gone with the status quo and have stuck with whatever’s worked in the past.
We’re pretty innovative, so we want to make sure that our custom homes are not only exactly what the client wants, but they’re going to be extremely energy- efficient as well. So we’re
doing a lot of open-web, parallel chord trusses and ceilings so we not only have vertical ventilation from the soffit to the ridge, but we also have crossventilation to keep the roof nice and cool so the shingles last a long time. We also have enough room to pack R-50 up there and insulate the ceiling more than adequately.
Ray has his hand on the pulse of this industry, whether it’s technical knowledge, advertising or tackling problems in innovative ways. He was one of the first in Canada to buy a giant CNC machine for milling up the logs. It was from Germany, and cost half a million dollars. It does all the drilling for the mortise and tenon joinery in the timberframe. It’s all done in-house in a controlled environment. Let’s say on the jobsite, a contractor makes a wrong cut on a piece of timber – he just has to send us the stock number, we re-cut it and ship it to the site the next day.
How has your lumber supply been holding up during the COVID pandemic?
We are an FSC (Forest Stewardship Council)-approved lumber purchaser. We have access to premium lumber that our competitors do not. In order to have access, you volunteer to be audited and you have to be part of their reforestation efforts.
We have to purchase a year in advance, so we have a lot of stock in our storage facility in Peterborough, drying out, for 12 to 16 months. It seems that prices used to be higher for log and timberframe, but now that dimensional lumber has gone up so much, people are calling us from all over North America, wanting to build log and timberframe homes because the prices now are almost equal. At the beginning of COVID, we thought, “Oh no, our business is done.” But it was the exact opposite for everyone in the building industry. It has become an explosive marketplace. Everyone wants to build in the country. Everybody wants to move to the lakefront and have an office in their home, while they’re able to work remotely. We’re booking sixteen months in advance. cc
RAIN,RAIN, GO AWAY
Permeable paving systems offer effective ways of managing rain water.
By Ellise Gasner, LID Permeable Paving
Low-impact development is a design method in which stormwater is managed in ways mimicking nature. Lowimpact development includes bioswales, rain gardens, green roofs and permeable paving.
LID technologies are becoming more and more mainstream as a result of our changing weather patterns and increasingly powerful and frequent rain events. Our densely populated cities with minimal green space and antiquated municipal drainage infrastructure are unable to manage the increase in stormwater volume.
Intelligent technology
LID technologies are used to manage stormwater on site, capturing rain where it lands, reducing runoff and reducing the risk of damage and costly flooding. Urban stormwater
runoff is a concern due to its polluted content. Runoff, especially around the winter months and early in spring, has a greatly elevated concentration of sodium chloride and potassium chloride due to the use of road salt which adversely affects the marine ecosystems in the Great Lakes and surrounding natural water bodies.
Permeable paving is a very popular method used to manage stormwater. It can be installed for residential, commercial and industrial projects.
There are many different types of permeable pavers available depending on the project application, budget and design preference.
Permeable surfaces are easier to install than you may think. Very basically, you can envision the concept of permeable paving as though you are constructing a bathtub or reservoir to hold stormwater and then surfacing the basin with a stabilization product. Think of it as a stormwater pond that you can drive on, park on and walk on.
It’s the base
The key ingredient for a successful permeable installation is the base; as we like to say, “it’s all about the base!”
The ideal base beneath a permeable surface is clear, angular gravel. We usually recommend three-quarter-inch stone. The voids formed by the angular stone provides the water storage and the lack of fines in the gravel ensure the base remains level and free-draining. The depth of the base will depend on three main factors: the soil conditions, the water storage needs and the weight-bearing requirements. The
Permeable paving systems can be installed in parking lots, driveways, sidewalks, emergency access lanes, patios and pathways.
base can be as shallow as a couple of inches and as deep as a couple of feet. Most engineers are familiar with the requirements for permeable surfaces and can help with project-specific installation guidelines. When there are very weak soils present, a non-woven geotextile is often recommended at the bottom of the excavation for additional stability and to ensure the base aggregate remains in place. If desired, permeable pavers can also be installed on top of holding tanks as a way to gather the stormwater beneath the surface to be reused for irrigation or grey water purposes.
For conventional permeable paver installations, once the base is in prepared and levelled, the permeable surface can be installed.
Different systems available
There are many different permeable paving systems available.
Grid pavers are not only easy to install but also offer the strength of concrete in a low-impact manner.
Porous concrete and porous asphalt are products that are usually incorporated into commercial and industrial projects. They are conventional solid surfaces with voids. It is through the voids that the water is able to drain. They require specially trained installers as the products can be tedious and challenging to install.
Permeable interlocking concrete pavers are one of the most commonly known options for permeable surfaces. There are a wide range of permeable interlocking concrete pavers available. The permeable nature of this surface usually comes from the joints between the individual pavers, although some of the pavers are actually porous as well. The joints between the individual pavers can be filled with a porous joint compound, a very small clear angular gravel or left open. The interlocking concrete permeable pavers can be installed by anyone familiar with installing interlocking concrete and even as a DIYer-type project. Permeable interlocking concrete pavers can be found in residential and commercial projects. They are often used for walkways, patios, driveways and parking areas.
Newer to the North American market, although used for decades in Europe, flexible plastic porous paving grids are another option which is becoming mainstream. These pavers are plastic grids with open cells. The cells are filled with porous material. The grids can be used for both gravel and grass paving applications and are filled with either small, clear, angular aggregate or soil for grass paving applications. Grass paving is popular for driveway extensions, overflow parking, heavy-duty and emergency access areas and outdoor festival areas. Often, a low growth sedum or robust ground cover is used for ease of maintenance. Gravel-filled plastic grid pavers can be filled with a wide range of aggregate depending on the design preference. Unlike a loose gravel area, once
the gravel is contained within the cells of the pavers, there is no migration or compaction of the fill and the area remains dust-free, level, stable and universally accessible. Grid pavers can be quite easy to install and are used for residential, commercial and industrial applications. They can provide a surface with the strength of concrete in a lowimpact manner. Many plastic grid pavers are made from recycled materials which make them a sustainable paving alternative.
If you are interested in more of a conventional-looking surface which is still permeable, there are pour-in-place permeable surfacing options which include recycled rubber surfacing and permeable resin-bound aggregate. These products require specially trained technicians for installation and can be quite beautiful which is perfect for high-end projects where esthetic design is paramount.
Once the permeable surface is in place and sitting on top of a properly constructed free-draining base, the rain water landing on the surface will percolate through the surface and into the voids of the base, slowly getting absorbed or evaporated.
Versatile and environment-friendly
Permeable surfaces not only help to manage stormwater in a land-efficient and effective manner by multi-purposing the area, they also help to cool the area due to the heat-island effect, which is a topic for another day.
Permeable paving can be installed for everything from parking lots to driveways, from sidewalks to emergency access lanes and from patios to pathways.
Your clients will be happy with the versatility of the products and the sustainability aspect and you will be happy with the ease of installation and the long lasting results.
Where will you install permeable paving this spring? cc
SUPPLY PAIN
There are gaps in the supply chain but COVID is not the only reason.
By Mariete F. Pacheco, managing director at FRW Services
The global pandemic has been in full swing for nearly a year at the time of this writing. Not a single industry has been left untouched by the economic and health impacts, and constructionis no exception. With the initial lockdowns in Ontario and across Canada to the more recent implemented curfews in Quebec. The construction industry in Canada has been hard hit this past year on many fronts: jobsite and sawmill shutdowns, increased costs of building materials, shortages of supplies and increased operating costs associated with keeping employees safe through enhanced sanitization protocols and
PPE usage.
The past year’s challenges were a perfect storm that has been in the making over the last few years. Unfortunately, the situation with COVID-19 accelerated its outcome and exacerbated an already delicate situation. Many critical building materials such as insulation, drywall and concrete have seen prices skyrocket in 2020 from 20 percent to 30 percent to well over double and none more so than lumber. A common element of increased prices across all core building materials was fourpronged; increased demand due to the explosive growth in the DIY market,
shutdowns in manufacturing, reduced transportation availability and growth in new housing builds.
Early 2020
At the onset of the pandemic, travelling and outdoor group activities such as going to the movies came to a halt leaving households with additional disposable income as there were fewer outdoor experiences they could spend their money on, such as trips and eating at restaurants. Combining this with the increased time at home led to Canadians investing in previously neglected repairs or maintenance projects and in creating
The home-building industry faced acute lumber shortages as prices skyrocketed amidst the COVID crisis.
new entertainment spaces such as outdoor living spaces, decks and home theatres plus addressing their new need of having to work from home and requiring a more permanent office space. The initial shutdowns of many manufacturers’ plants due to not being considered essential or having experienced COVID-19 outbreaks produced further backlogs in many needed building materials. The ramp-up times to bring capacity back online from shutdowns were further complicated by the need for enhanced sanitization and safety protocols, which were unheard of previously, plus the monumental task of procuring additional PPE during a climate of unprecedented global demand when most critical PPE was being channeled to healthcare providers. Availability of transportation services suffered greatly in 2020 in part by railcar availability. CN alone furloughed 4,000 employees due to a drop in overall demand by their customers plus the increased demand in overseas air and sea freight now focused on desperately needed PPE which is mostly sourced globally from parts of Asia. Shipping lanes were being prioritized for PPE orders and medical supplies; nonmedical products were often put aside, causing significant shipping delays. The decreased availability of freight services and the increased demand for these services caused by panic PPE buying caused freight costs to shatter records. Forty-foot containers previously landing in Canada for under $4,000 were now coming in at well over $9,500 when freight could be secured. Although 2020 was filled with many roadblocks, the year had started off very strong in new home builds, outpacing 2019’s results, which is forecasted to continue into 2021. This growth would be welcome any year; unfortunately with increased demands in the DIY market and supply shortages it further compounded the challenges in the building materials industry.
Lumber market
and wood products supply
market encountered its own unique setbacks in 2020 that can be attributed to increased stumpage fees, wildfires, the mountain pine beetle, sawmill closures and the United States’ economic environment changes.
Stumpage fees
Stumpage fees across Canada have
increased significantly as the price of lumber climbed. Alberta coniferous stumpage fees doubled to over $67 per cubic metric in September compared to August’s rate of $36.56 per cubic metric. This is even higher when compared to the previous peak of $40.25 in June 2018 during the last major North American lumber price spike, according to the
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Alberta Forest Products Association. A similar tale is seen in British Columbia, Ontario and Atlantic Canada regarding wood harvested from Crown land. There is some light at the end of this tunnel, however, as both the British Columbia and Alberta governments announced temporary stumpage fee deferrals to assist the industry during these tumultuous times in mid- and late 2020. The question remains for how long the deferral will last and will organizations who opt-in to the deferral plan be in a better or worse financial position when the government fees plus interest come due compared to the present.
Wildfires
The wildfires which are now commonplace in western Canadian provinces have devastated the lumber and wood products industry. In British Columbia, in particular,
2017 and 2018 were amongst the worst across the country. Combine these terrible years with the ongoing difficulties from previous years’ wildfires and the impacts are further magnified. In addition, Quebec and New Brunswick both experienced some of their worst wildfires in a decade this past year.
Mountain pine beetle
The mountain pine beetle, although native to western Canada, has started to become an invasive species due to the uncontrolled populations. Generally, these beetles succumb to the colder temperatures of Canadian winters. Unfortunately, due to the warmer temperatures caused by climate change, the population of mountain pine beetles has risen dramatically. The mountain pine beetle can be a great asset to help manage forests by feeding on older and dead trees. However, their populations have grown to an almost unmanageable size, causing premature death in trees. This can also be the source of wildfires, thereby reducing the overall supply of trees for the lumber market.
Sawmill closures
The forestry industry had been having a difficult time before 2020, with sawmill production declining in 2017 through 2019 due to countless mill closures focused primarily across Alberta and British Columbia. This lost capacity made it tough for existing mills to keep up not only with historical demand but also the increased demands in 2020 from the growing DIY and strong new home builds markets.
U.S. economic drivers
In early December, 2020, the U.S. Commerce Department lowered its 20 percent tariff on lumber imported from Canada to nine percent. This significant decrease combined with the ongoing strong new housing demands seen in the U.S. market will drive additional demand for Canadian lumber, in an already tight supply market.
Best practices
To combat the negative implications of price increases and supply availability, there have been some creative solutions generated. Traditionally, manufacturers have consolidated their lumber purchases in the interest of maximizing their savings through single-sourcing from a limited number of sawmills. However, to maintain a steadier supply, some manufacturers and contractors alike are now growing their list of suppliers in the hopes of improving product availability. Additionally, the industry has become more receptive and open to using non-traditional
The lumber and wood products industry has been impacted heavily by frequent forest fires in Western Canada.
alternative building materials in the interest of managing not only costs but keeping a project on track. Historically, alternate supplies such as composite building materials, metal joists and structural insulated panels where avoided due to their costs being several times more than their traditional lumber and wood-based counterparts. However, as the price of lumber has climbed, these alternatives have become more in line and in some cases can be more affordable when considering the lower labour costs associated with installation. Structural insulated panels would be an example.
In late December, 2020, RBC estimated lumber prices to remain strong and set to climb in 2021 to an average of $575 US per thousand board feet from previous estimates of $475 US (the average for 2020 was $560 US) and strand board panelling was expected to be $430 US per thousand square foot in 2021 versus its previous estimate of $305 US (the average in 2020 was $420 US). The lumber market difficulties seem they will likely persist through 2021 and into 2022 as demand outstrips supply. According to the Canadian Home Builders Association, the increased costs associated with lumber and related wood products alone have added up to $30,000 to the construction cost of the average 2,500-squarefoot house in Canada.
This year is forecasted to be another memorable and unique year until vaccines become widely distributed. Building material prices and product availability volatility will continue to hinder residential construction’s plans and builders’ profitability as estimating costs becomes nearly impossible in the current market and rolling site shutdowns become frequent occurrences due to government mandates and COVID-19 outbreaks. The only constant the industry has faced so far this year and last, has been unpredictable change. Time to expect the unexpected in 2021. cc
According to NRCan, the mountain pine beetle outbreak has affected more than 18 million hectares of forest since the 1990s.
What caught our interest
SMART AND SECURE moen.com/flo
Moen has expanded its Flo by Moen Smart Water Security System, giving homeowners more power to control, conserve and monitor the water that flows through their homes – including the ability to help stop leaks before they start. The Flo by Moen System is comprised of several innovations that combine to provide a whole-home water security and management solution, with the ability to control the system from the corresponding Moen App. Its leak detection and water monitoring device is installed on the water lines going into the home. It can automatically turn off the water to the home if a leak or a risk is detected. The smart water shutoff provides automated water security by monitoring water pressure, flow rate, and ambient temperature, while running daily health tests to check for leaks and other abnormalities. If the Shutoff senses a home has a leak or is at risk, it will alert the homeowner so they can take action through the app, or the device can be set to close the water valve automatically and help prevent catastrophic damage. Its Smart Water
Detector is a standalone sensor that can be placed anywhere in a home to alert users when and where it detects moisture outside the pipes to help prevent water damage and loss. Users simply place the discreet sensor where they see a risk, such as the basement, laundry room, attic or other areas in the home that are susceptible to water damage by environmental factors or fixture malfunctions. The Smart Sump Pump Monitor helps homeowners reduce the risk of flooding as a result of failed sump pumps by providing monitoring and alerts when potential failures or unusual conditions are detected. The Smart Sump Pump Monitor is retrofittable to a homeowner’s current sump pump and provides peace of mind through advanced analytics and by monitoring for high water levels, loss of power, pump failure, as well as temperature, humidity and leaks. A full line of optional accessories is also available to extend the functionality of the Smart Water Shutoff and Smart Water Detectors, including a battery backup, an extension cable, spacer kits and the Smart Water Detector Leak Sensing Cable.
A FRESH PALETTE cambriausa.com
Cambria, a producer of natural quartz surfaces, has announced the addition of four new designs to its existing palette. The designs feature subtle greens, surprising teals and high-contrast black and white. They were inspired by the lush green landscapes of Kyoto, Japan, the intoxicating beauty of the Aegean Sea and the powerful influence of the global fashion design community. They deftly balance warm and cool tones, making them uniquely versatile, and come on the heels of 34 new Cambria designs introduced in 2020, including the launch of The Coordinates Collection in collaboration with Gensler design firm. All four new designs are available in Cambria Matte and high gloss finishes. They come in up to 19 different edge-profile treatments, and in two centimetres and three centimetres thicknesses in jumbo-size slabs of 132 inches by 65.5 inches. Like the ongoing movement toward warmer and softer white kitchens, Ruxley features subtle emerald green veining (decreed by experts as de rigueur for 2021) set against a creamy white background. The bright, pristine white background of Ivybridge reflects the precision Kath saw during a trip to Kyoto, and the lush greenery is represented in the purposeful dark teal diagonal veins. While designers,
specifiers, and homeowners are still loving a marble-like look, Cambria found a way to differentiate it with Kendal, a modernized design that features a smooth, soft teal palette – coincidentally matching Benjamin Moore’s 2021 Color of the Year Aegean Teal – swirled against a cool white background. Blackbrook is inspired by trips to Milan, the global fashion industry, and the most classic colour combo of all: black and white. Standing the test of time, this high-contrast pairing has become increasingly favored in recent seasons. Blackbrook’s jetblack background is a stark contrast to the bright white veins throughout. Together, the subtle equilibrium of opposing elements creates a stunning effect that’s greater than the sum of its parts.
STRIKING ESTHETICS WITH INSTALLATION EASE
gentek.ca
Gentek, a manufacturer of exterior building products, announced the launch of the Align composite cladding system. Align provides the architectural beauty of real wood with easier installation and better overall value for remodelers, builders and homeowners. Align offers a low total-installed-cost of cladding without sacrificing curb appeal, resulting in high profitability. The system features an impressive style with a seven-inch flat face exposure and authentic cedar mill grain texture. It has heightened structural strength with patented (GP)2 Technology that meets or exceeds industry test standards for wind load, workability, flame spread and smoke development, weatherability and termite resistance. It has a self-aligning stack lock, providing quicker and easier installation than fibre cement and engineered wood while requiring fewer labourers to get the job done.
“Superior esthetics with installation ease and best overall market value: everything perfectly aligns in this innovative composite cladding system,” said Philippe Bourbonniere, executive vice-president of Gentek Building Products. “As a true building products partner, we are
DRIVING EFFICIENCY
se.com/ca
Schneider Electric showcased its Wiser Energy Monitor, Square D Energy Center and new connected wiring device ranges for builders seeking innovative ways to drive efficiency and sustainability at the International Builders’ Show. These new smart solutions allow builders to differentiate their homes through increased electrical system connectivity, transparency and enhanced energy control. Schneider Electric is offering builders new solutions to help respond to changing home buyer needs and evolving environmental regulations. Schneider Electric is working with home builders, offering solutions that focus on the four key areas that enable them to build top-ofthe-line homes: providing safety and protection; creating an enhanced lifestyle with connectivity; incorporating AI and machine learning; and embracing modern esthetics and modular designs. The Square D Energy Center is a resilient, efficient and esthetic all-in-one home energy system designed for smart homes offering personalized digital control over residential energy use. It addresses changing building regulations. And it integrates an array of smart home technology, including whole-home surge protection, EV connectivity, Qwik-Connect solar inverter, backup interface module, backup-ready panel and more. The Wiser Home Energy Monitor is a connected solution integrated into the home’s electrical panel providing real-time information to optimize home energy usage and
dedicated to making projects easier, more efficient and more rewarding to complete.”
Align composite cladding is backed by a lifetime limited warranty, is virtually maintenance-free and offers compatible trim, windows and accessories. It’s available in a curated palette of 20 fade-resistant colours, helping homeowners achieve a variety of looks while eliminating the cost and need for costly repainting in the future.
track savings. It offers enhanced monitoring and control of residential energy use through a single app. Updates and alerts are available to track energy use for all electrical devices across the home. The Square D Wiring Devices are high-performing, multi-tasking, connected light switches, dimmers, outlets and combination devices that can control room lighting and monitor energy. Embedded sensors monitor energy consumption down to the switch level, offering greater insight to optimize residential energy use. Classic functionality is available in a wide range of colours to enhance the esthetics of any home, easy to install and compatible with Alexa and Google Home for voice activation.
Compliance conundrum
Spring is on the way and Justin’s phone has been ringing off the hook all winter. His locked-in clients are full of ideas for how to spend those vacation dollars on every kind of renovation and addition imaginable.
There’s only one problem. Justin’s costs for supplies keep shifting. Lumber just keeps going up and up and other items such as drywall, insulation and concrete are getting hard to find and more expensive when he can. He’s certainly not big enough to buy everything in advance for jobs that are months away, nor can he even be sure the supplies he needs will be there when he needs them.
Justin has always tried to do all-in quotes for his clients and has come to rely on some discounts he gets from suppliers on the sale of their products. But now he’s at risk of losing money on those quotes if prices shift much more. He knows he could go cost-plus but fears blowback from this clients and loss of jobs if prices get much worse than his estimate. Padding out his quotes to absorb any potential increase threatens to make him uncompetitive.
Last issue’s winner: Can’t takes no more
In February, Barry wasn’t sure how close to play to the COVID lockdown rules. David Weenan of Weenen Electric in Toronto feels his pain, but explains the downsides of breaking the rules exceed the benefits.
This isn’t just Barry’s dilemma. We (the legitimate, law-abiding contractors) are all facing the same issue. Currently, we have three projects that are ready to go. After some investigation, we have spoken to and have been advised by a couple of different sources that, unless the permit has been issued and shovels were already in the ground prior to the restriction date, then work cannot proceed. I have found so far, that the best course of action is to have an open, transparent conversation with the clients. Pointing out to the client that starting their project is the most desirable course of action for both parties (we want the work, they want the work done) is effective and garners appreciation from the client. Then explain that if some neighbour complains and an inspector or enforcement officer shows up, the potential for fines and excessive delays is real. That usually snaps them back into reality. There is also the issue of optics. What does starting a new job after we’ve been told “don’t” say about our company? It infers that we are a bunch of cowboys who give little or no regard to playing within the rulebook. If a contractor is prepared to break this fairly big rule, what kind of smaller issues are they prepared to cheat on?
Guys…ride it out. Finish up the work you already started (as long as there was a permit issued and work was well underway, we are allowed to finish it.)… clean your shop…maintain your equipment… catch up on the paper work. We all know we never have nothing to do.
Great response, David! You win a DeWalt Max jobsite Bluetooth radio and DeWalt Max compact task light.
What should Justin do?
1. Tell his clients he can’t give firm quotes until the job start is closer.
2. Go cost-plus on his quoting and max out the line of credit buying supplies in advance when prices are good.
3. Quote the job at 20 percent higher than normal and let his competition take the pain if they want the job.
4. Quote the job at whatever today’s prices are and hope for the best.
5. Something else?
HOW TO ENTER
If you have a solution to Justin’s dilemma, email your entry to pflannery@ annexbusinessmedia.com and put “Justin’s dilemma” in the subject line. Please don’t post your response to the Dilemma post on our website.
Entries close April 19. The winner will be announced in the May/June issue.
YOU COULD WIN
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