Construction in Vancouver - Issue 1432

VRCA news feature

A p r i l 1 1 – 1 7, 2 0 1 7 v R ca . b c . ca

Building tomorrow’s construction professionals today L.A. Matheson Secondary is one of many schools in the Lower Mainland that have benefited from career presentations by the Vancouver Regional Construction Association education committee | Pages B4-B5

FINDit

L.A. Matheson Secondary School

constructive comment B2 Construction industry is No. 1 employer in B.C.’s goods sector Legal Specs B8 Court to weigh in on notice of labour and material bonds

Educating the next generation of construction professionals

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Building the foundation for careers in construction B6 Loyalty is a fickle beast

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The changing of the guard

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A day in the life: With Colin Rink, HSE co-ordinator with PCL Constructors Westcoast Inc. B7-B8

April 11–17, 2017

special news feature | Vancouver regional construction Association

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Constructive comment

Construction industry is the No. 1 employer in B.C.’s goods sector VRCA busting some deep-rooted myths to attract youth to the industry We are very heartened by these early results and are on a mission to extinguish the above myths once and for all

By Fiona Famulak

T

he importance of the construction industry to B.C.’s economy cannot be overstated. The $15 billion industry generates 8% of the province’s wealth and employs more than 210,000 workers, making it the No. 1 employer in B.C.’s goods sector. The industry is professional and progressive and builds the state-of-the-art infrastructure that we use every day.

It is therefore ironic that the industry that relies on innovation, new technologies and bestpractice procedures struggles to attract young talent. In the grip of a skilled-labour shortage that is forecast to leave unfilled as many as 10,000 construction jobs by 2026, the industry attracts only one in 69 high school graduates into its construction trades programs. That number needs to be significantly higher if we are to effectively address the 2026 projected shortfall.

There are myths to bust The increasingly globalized and competitive business environment, tight labour market and advances in knowledge and technology are creating new pressures for construction companies to innovate in order to differentiate, improve their reputation and attract the next generation of talent. Added pressure comes in the form of some deep-rooted myths that must be countered with facts if the industry is to attract young talent in future.

Those myths include: Myth 1: A career in construction is a secondbest choice compared to one that requires a university degree The industry does a poor job of promoting itself. We’ve all seen the stock photo of a guy with a hard hat on site on a rainy day, wielding a hammer. The picture is neither appealing nor fairly representing the industry. While a cold, wet day on site is inevitable for some, our industry is

becoming increasingly more sophisticated and reliant on technology to improve productivity and to stay competitive.

It’s a fact that the opportunities to pursue a “clean” career path in construction, whether to operate state-of-the-art machinery or keep a multimillion-dollar project on track, are numerous and must not be overlooked.

Myth 2: The construction industry offers a limited career path It’s also true that the construction industry is multi-faceted with myriad opportunities for career advancement.

For example, apprentices may pursue their chosen trades for life, or with a view to owning their own businesses, as early as their mid-30s. They may decide to switch direction and follow the project management route towards a senior management position. Or they may leverage their trade to travel the country or the world pursuing rewarding career opportunities along the way.

Myth 3: A career in construction doesn’t pay well The average annual salary of a B.C. construction employee is $57,700. The average B.C. student debt after a four-year degree is $35,000 – the highest in Canada.

The opportunity to pursue a financially rewarding career in construction fresh out of high school is real. In fact, it represents the path chosen by many of our Under-40 Network members who proudly own their businesses and/or their homes today.

We’re changing the conversation one student at a time Today’s youth have an essential role to play in the future of the construction industry, not only to fill the 2026 projected shortfall, but also to help the industry be technologically smart, innovative, productive and competitive at home and overseas.

In late 2015, in this column, I reported that the Vancouver Regional Construction Association planned to engage counsellors and students from schools across the Lower Mainland, to identify ways in which we can work together – in addition to attending career fairs and information sessions – to promote construction as an attractive and viable career path. We’re doing exactly that via our high school outreach program. As set out in this edition’s Spotlight feature, with the help of counsellors, teachers and our volunteers, we have engaged over 1,200 students from seven schools in the last 15 months, with 34% of those students, when asked

post-engagement if they would pursue a career in construction, changing their mind from “No/ Maybe” to “Yes.” We have a long way to go to engage all schools, including K-12, across our region in this way.

However, we are very heartened by these early results and are on a mission to extinguish the above myths once and for all. And while the outreach program is key, we’ll also continue to work closely with our post-secondary education partners to ensure that graduates are equipped to meet the various demands of today’s dynamic and competitive market place.

As a parent or a counsellor, you’ll want your child or student to make the best possible career decision. I therefore urge you to ensure he or she has access to the industry facts. Please let us help you. And the next time you see the guy-or-girl-with-hard-haton-site-on-a-rainy-day photo, understand our industry has countless opportunities to have a fulfilling, financially rewarding and local, national or international career while building the cities and infrastructure of the future. • Fiona Famulak is president of the Vancouver Re gional Cons truc tion Association, which is the largest regional organization in B.C. and is a member of the BC Construction Association.

CONSTRUCTION: Building B.C.’s workforce for tomorrow and beyond Rising demand for skilled workers puts pressure on industry to redouble recruitment, diversification

By BuildForce Canada

T

he construction industry plays a leading role in keeping B.C.’s high-performance economy humming. It’s an industry that generates $15 billion in annual revenues and almost one in 10 jobs, making construction one of the fastest-growing sectors of the provincial economy.

While construction nationally is expected to slow over the next decade, it’s just gearing up in British Columbia, where proposed expansion plans have the construction workforce growing in record numbers.

B.C. has the potential to lead all other provinces in construction job growth, and not just for one or two years, but for the next five or six. Major infrastructure projects, from proposed pipeline, mining and liquefied natural gas (LNG) projects to utility, highway and

continued on page B3

Non-residential construction employment in British Columbia BuildForce Canada predicts that British Columbia’s construction workforce will increase 24% by 2021 100,000 Forecast

90,000 80,000 70,000 60,000 50,000

Employment growth driven by proposed LNG, pipelines, utilities, mining, transportation and other infrastructure projects.

40,000 30,000 20,000 10,000 0 2011

2012

2013

2014

2015

2016

2017

2018

Source: Statistics Canada; BuildForce Canada (2016-2026)

2019

2020

2021

2022

2023

2024

2025

Non-residential employment

2026

BuildForce Canada 2017-2026

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bridge work, are expected to boost B.C.’s construction workforce by up to 17,000 workers. That 24% increase by 2021 will make the non-residential construction workforce bigger than ever.

“An up cycle of this scale and magnitude requires careful planning and steady recruitment,” said Rosemary Sparks, executive director of BuildForce Canada.

“New workers will be needed from within the local workforce, outside construction and beyond B.C.’s borders to meet labour demand.”

While B.C. is poised for significant job growth, a lot depends on timing. BuildForce Canada’s 2017-2026 Construction and Maintenance Looking Forward forecast shows the strongest nonresidential job gains between 2019 and 2021. That’s provided pipeline and LNG projects proceed as planned.

Over the near term, more moderate growth is expected, driven by a rise in utility and transportation infrastructure work, ranging from Pattullo Bridge

April 11–17, 2017

Improvements to the Pattullo Bridge are among major projects the construction industry is set to tackle in the near term | JamesChen/Shutterstock

improvements to the George Massey Tunnel replacement project. Industrial, commercial and institutional building continues on an upward trend, while new housing activity, especially highrise construction, is expected to slow in 2017 after years of exceptional growth. Renovation work is forecast to rise and will absorb some skilled workers as new housing slows over the forecast period.

While some workers may make the move across sectors as new

job opportu n ities emerge, a willingness to locate to remote regions of the province is also critical in meeting B.C.’s labour demands as projects ramp up.

“Industry needs workers in the north where many of the major projects are located,” Sparks said.

“Skilled construction tradespeople will be in high demand, including supervisors, managers and estimators.”

Attracting enough workers with the right skills is only part of the challenge for local recruiters. A

much longer-term problem is addressing the need to replace an aging workforce. Across Canada, about a quarter of a million construction workers plan to retire this decade. Up to 40,000 of those workers are in B.C. With 21% of the construction workforce retiring, local companies need a plan to replace these workers, their skills and their experience. It’s something Sparks can’t emphasize enough.

Diversifying the construction workforce is also a big part of

the solution to countering the impending wave of retirements.

With indigenous people accounting for just 3.8% and women 4% of B.C.’s construction trades workforce, a growing number of organizations have been working hard to change those statistics.

New partnerships, training programs and resources have had encouraging results.

“Building a long-term sustainable construction workforce goes far beyond recruiting for the next construction up cycle,” Sparks said. “This is the time to mentor and encourage those young people who start construction careers to stay and advance. Ensuring the next generation of skilled workers is ready to lead as baby boomers leave is key to the B.C. construction industry’s success.” • BuildForce Canada is a national industryled organization that represents all sectors of Canada’s construction industry.

Its mandate is to provide accurate and timely labour market data and analysis, as well as programs and initiatives to help manage workforce requirements and build the capacity and the capability of Canada’s construction and maintenance workforce.

BuildForce Canada

The construction industry plays a leading role in keeping B.C.’s high-performance economy humming. It’s an industry that generates $15 billion in annual revenues and almost one in 10 jobs, making construction one of the fastest-growing sectors of the provincial economy

April 11–17, 2017

special news feature | Vancouver regional construction Association

B4 news SPOTLIGHT: Educating the next

The Vancouver Regional Construction Association education committee offers construction career presentations to students across the Lower Mainland | vrca

Construction in Vancouver talks to the VRCA education committee

By Mark Pashley

J

ust one out of every 69 B.C. high school graduates ends up entering a construction trade program within one year of graduation, according to the British Columbia Construction Association (BCCA).

At that rate, the province’s construction industry will need to recruit outside of B.C., and at a remarkable rate, to fill the 17,000 extra construction jobs BuildForce Canada expects will open up by 2021.

“In order for us to address the skills shortage that we’re seeing and will continue to see in B.C., the ratio needs to be around one in seven,” said Fiona Famulak, president of the Vancouver Regional Construction Association (VRCA).

It’s a major undertaking, considering the challenges that need to be surmounted. Among them: the misconceptions surrounding a career in construction.

“T hroughout the course of the engagement we have with schools, it’s also teaching the kids about what construction isn’t,” said Richard Shipway, a commercial business manager with Axiom Builders.

As a member of the VRCA’s 15-person education committee, Shipway is part of a team vying

The plumbing program class of 2016 from New Westminster Secondary School | new Westminster Secondary School

to bring accurate information about the construction industry to school districts across the region, from Whistler to Hope.

“We try to encourage people around the table, people that we know and people inside the VRCA just to engage as much as they

can,” Shipway said, adding that the idea is to scale the program organically.

Speaking directly to parents as well as teachers may be part of that ultimate vision as well, but for now, the team is focused on taking its informational,

myth-busting agenda to local high school classes, one secondary school at a time.

As Shipway puts it, the construction industry of today, and the one of tomorrow, isn’t recklessly dangerous or grimy and dirty. It doesn’t pay poorly, nor

is it for those who struggled in school. It isn’t about “swinging a hammer on a rainy day outside,” either.

“The smartest people I know are tradespeople, the most valued people in society are tradespeople,” sa id Ronan Deane,

special news feature | Vancouver regional construction Association

April 11–17, 2017

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generation of construction professionals business development manager at Graham Infrastructure LP and chair of the education committee.

“Who do you call when there’s a problem in your house? You don’t call the engineer,” he added. “You don’t call the lawyer.

You call the tradesman, and they fix it.”

In addition to general demand for skilled tradespeople, many of the upcoming in-demand construction jobs will rely on skilled expertise in a variety of areas, or will focus on the management side of the industry. According to PayScale, the average salary of a construction project manager in Canada tops $75,000, while a superintendent fetches around $91,000.

Information on salary, on how to get into a career in construction and on the benefits of doing so are part of what the VRCA’s education committee covers in its presentations to Planning 10 high school students.

“The goal, really, is to be at a stage where there are 40 or 50 people within the VRCA – don’t get me wrong, there’s no upper limit on that – but lots of people within the VRCA who know about our presentation, are comfortable giving it, and we’re doing hundreds of these presentations every year,” said Deane.

“We’re just trying to get the message out there that a career in construction is more than they think it is,” added Shipway. “We explain that it’s an exciting industry, that it’s a big, diverse industry.”

To date, the committee has worked with the school districts in Richmond, North Vancouver, Surrey, Vancouver and New Westminster.

In fact, New Westminster Secondary School was one of the first schools to work with the committee and recently hosted a daylong presentation all about construction.

Around a year ago, the committee first began its now oncea-semester presentations. The 2016-17 school year marks the first time the committee will have reached all of New West Secondary’s Grade 10 students, and each time the committee presents, it reaches seven to eight classes and more than 200 students.

“They talk about everything

from the skilled trades that are involved in construction, all the way up to management,” said Karen Crosby, career programs co-ordinator with the school.

According to Crosby, out of a potential group of 1,900 to 2,000 Grade 11 and 12 students, New West Seconda r y someti mes struggles to fill its 16-seat Industry Training Authority construction program. Combating the misconceptions students and parents have about the industry has also proven to be a challenge.

“Construction has been our focus, partly because the VRCA has been a great partner and reached out to us, but also partly because we have a lot of work to do in this area,” she said, adding that the VRCA education committee’s presentations are unique to the school – no other industries are given the same time or platform.

And every little bit helps, especially considering that, according to the committee, 30% to 40% of the high school students the group works with initially approach construction dead-set against ever entering it.

“There was actually a student who came up to us with his nextsemester class options, and he asked: ‘OK, if this is what I want to get into, what classes do I need to take?’ And that was pretty cool to see,” said Kristi Seddon, a project co-ordinator at Ledcor and an education committee member who recently presented at New West Secondary.

There was a similar level of engagement and enthusiasm on the part of the students at L.A. Matheson Secondary School in Surrey after the committee presented there for the first time in December.

“I thought the response was pretty positive,” said Devinder Deol, a teacher at the school.

“The students were impressed with the wide variety of careers and how involved the construction industry is in the economy.

“We went through the presentation once and it went really well. We’re going to do it on a bigger scale in April.” Deol added that the school has booked its theatre for the occasion so as to accommodate more students.

In the year leading up to September 2016, the education committee engaged one high school and around 450 students. From November 2016 to March 2017,

At that rate, the province’s construction industry will need to recruit outside of B.C., and at a remarkable rate, to fill the 17,000 extra construction jobs BuildForce Canada expects will open up by 2021

that outreach grew to 753 students across seven schools.

“Within a short space of time, we’ve practically doubled the number of students engaged, to the point now that schools are calling to ask if they can be part of the outreach program,” Famulak said. “That’s the momentum we want to create and sustain for as long as it takes.”

According to Deane, each presentation conducted by the committee is also educational for the

high school teachers and career counsellors who sit in on them.

And though the focus is on the students, parents are another g roup t he com m ittee hopes to engage and educate on the value of a career in construction, Deane said.

A nd the work is starting to show results.

Over the next several years, the education committee’s goal is to engage all of the school districts across the Lower Mainland. The

VRCA will also work with the BC Construction Association to scale the association’s outreach program to connect with schools throughout the province.

“I rea lly wa nt ou r engagement of students, educators and parents to be something that is second nature,” Deane said. “So we’re not talking about getting it started at the education committee but instead reviewing its impact on students and the industry.” •

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April 11–17, 2017

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outreach: Building the foundation for careers in construction Construction Ready is the latest initiative from the Construction Foundation of BC

By Colleen McConnell

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n 2012 the Construction Foundation of BC was launched by the BC Construction Association to act as the mechanism for industry to give back to the communities in which we live and work. The foundation’s inaugural campaign, Project Shop Class, was developed to aid B.C. schools in the revitalization of their shop classes with new tools and equipment. To date, Project Shop Class has raised and distributed over $3 million across the province. As a result, youth are now working with newer equipment and are developing a

better understanding of what it means to work in industry.

As part of the foundation’s continued commitment to connecting youth to opportunities that lie within the construction industry, its latest initiative, Construction Ready, was developed to empower young people in high school to begin getting work-ready for a career in construction.

Given that Statistics Canada finds that fewer people aged 25 to 34 hold trade certificates than those aged 55 to 64, and BuildForce Canada’s latest data indicates non-residential employment is expected to increase

Abigail Fulton | executive director, Construction Foundation of BC

The response we have had from employers, educators and the students has been phenomenal.

The foundation is continually looking to the future and implementing ways that we can support the next generation of industry leaders

by 16,800 workers to the 2021 peak, it is evident that we have some work to do. With shortages of this magnitude on the horizon, it is imperative that we encourage and support high school students to pursue careers in construction.

“We are currently running a pilot of Construction Ready in two regions of the province and are set to begin investigating the potential in the north and Lower Mainland later this year,” said Abigail Fulton, executive director of the Construction Foundation of BC. “The response we have had from employers, educators and the students has been phenomenal. The foundation is continually looking to the future and implementing ways that we can support the next generation of industry leaders. Construction Ready is just one way we can help to mitigate future skill shortages.”

Early on in program development, employers from across the province were polled to find out what they look for when hiring new employees. Three key attributes were identified time and

again – employers look for individuals who have the right attitude, skills and knowledge for the job. Construction Ready, whose acronym for these qualities is “the ASK,” has developed tools to raise awareness of construction careers and what a young person can do to get ready to work in the sector.

Using the initiative’s online tool, FutureBuilder, high school students are challenged to work through and track experiences that lead them to acquire the ASK desired from a new employee in construction. From the tool, they can then share their progress through four levels of activities with teachers, potential employers and other supports.

With the help of industry professionals called Construction Career Catalysts by the foundation, Construction Ready will help build the connection between youth, employers and educators as high school students prepare for and transition into the construction workforce and ultimately bridge the gap into apprenticeship and long-term

careers.

As a result, young people who have participated in Construction Ready will be connected to industry and have a better understanding of the opportunities available in the construction sector.

Construction is ranked as the No. 1 employer in B.C.’s goods sector and employs over 210,000 people, making it a strong industry for youth to consider as they plan for the future. Industry involvement in initiatives such as Construction Ready and Project Shop Class will enable young British Columbians to develop the practical skills that will help them build a successful future in B.C.’s construction industry. • Colleen McConnell is director of public relations for the Construction Foundation of BC. Established in 2012, the foundation is d e d ic ate d to th e a dva n ce m e nt of the construction industry, with a focus on education and research. For more information on the foundation and Construction Ready, visit www. constructionfoundationbc.ca and www. constructionreadybc.ca

Employment: LOYALTY IS A FICKLE BEAST Construction employers are taking a lead from outside of the industry to retain their employees

BY Mark Pashley

C

u rrent a nd proposed projects in the construction industry are forecast to peak around 2021. The 2017-2026 Construction and Maintenance Looking Forward report by BuildForce Canada estimates a net gain of 17,000 total construction jobs in the same period.

The 2017 Hays Canada salary guide indicated that approximately 72% of construction employers were hiring, and it is unlikely that this proportion will change significantly. In a marketplace of very few candidates, recruiters are unwilling to compromise, which offers an added layer of difficulty.

But loyalty is a fickle beast, especially in an industry where skilled tradespeople are in high demand and can almost name their price.

T he Hays salary guide also found that almost 30% of employers said they intended to increase salaries by 3% or more to retain workers. However, there can be only one highest-paying employer in an industry that traditionally doesn’t offer signing bonuses.

So, in a province where construction is forecast to grow, how do employers retain their

h i g h l y s o u g h t-a f te r – a n d fought-over – employees?

In 2016, as in other years, career progression remained the biggest retention challenge.

“When candidates have multiple offers the key factors that influence their decision are salary, benefits, company reputation and long-term career opportunities,” said Russell Carnley, senior manager of construction and property with Hays Canada. Carnley continued, “It may seem obvious but people’s main focus is the well-being of themselves and their family.”

Many companies that have successfully retained their employees are turning to non-salary-based benefits to maintain staff loyalty, such as medical benefits, training and education, health and family benefits.

Carnley agreed, saying “incentives, perks and benefits are how companies are retaining employees.”

A nother compa ny, Canada Scaffold Supply Co. Ltd., explored non-salary-based incentives further and now offers a subsid ized 37-ch i ld dayca re faci l ity, access to a 5,000-square-foot gym (with a personal trainer twice weekly) and a vegetable garden accessible to all employees.

Not u n l i ke ma ny B.C.

Non-salary-based employee benefits Many employers are using non-salary-based incentives to entice and retain quality personnel in the high-demand construction industry

Medical

Health

Family

Education

• MSP contributions • Prescription cover • Dental cover

• Increased paid leave • Gym membership • Specialist fitness classes and run/walk groups • On-site catering • Paid weight-loss programs • Lunch-and-learn info sessions

• Daycare • Increased maternity/ paternity leave • Family activities, such as day trips, Easter egg hunts and Santa visits • Scholarships for adolescent dependants

• Paid training • Membership of professional organizations • Paid conference attendance

In 2016, as in other years, career progression remained the biggest retention challenge

construction companies, Canada Scaffold faces recruitment cha l lenges as baby boomers retire.

“We have an aging workforce here,” said company general manager Chris Jones, “so as we

try to attract young, educated individuals to work for us we are finding that our facility is a real enticement that moves the position from a job to an experience.”

Construction companies are now looking outside of the industry for ideas and guidance.

Released in November 2016, the winners of Canada’s Top 100 Employers 2017 competition employ best practices – outside of standard employment packages – to support their employees. For example: •The College of Physicians and Surgeons of British Columbia helps employees prepare for the future with retirement

planning assistance and health benefits that extend to retirees (with no age limit).

•Shaw Communications introduced an academic scholarship program for employees’ children pursuing post-secondary studies.

•Simon Fraser University provides an on-site health clinic to employees.

•KPMG offers 50 hours of paid time off for personal matters and three-to-six-month global secondments.

In short, employers are thinking outside the wallet and offering non-traditional benefits to retain their most valued and highly trained employees. •

special news feature | Vancouver regional construction Association

April 11–17, 2017

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CONSTRUCTION: The Changing of the guard British Columbia Construction Association

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t can be said that any time is a time of change. Certainly in our modern world we’re experiencing technological change at a dizzying pace. Business operations are rarely the same from one year to the next.

In the midst of fluid, evolutionary changes, there are sometimes major milestones. These milestones become tangible turning points that we look back on, referring to them as the dividing point between “before” and “after.”

B.C.’s construction industry is in the midst of a milestone period, with concurrent leadership changes at five associations – truly a changing of the guard.

They include: •Manley McLachlan is succeeded as president of the British Columbia Construction Association

(BCCA) by Chris Atchison.

•Philip Hochstein is succeeded

by Chris Gardner as president of the Independent Contractors and Businesses Association of British Columbia.

•Jack Davidson hands the reins at BC Road Builders to incoming president Kelly Scott.

•At the Vancouver Island Construction Association, Greg Baynton is succeeded by Rory Kulmala.

•At the Southern Interior Construction Association, Bill Everitt is succeeded by Roger Smith.

The three provincial presidents have been in these influential positions for decades. They have shaped our sector, with their sometimes provocative voices advocating on behalf of their membership and the industry at large.

In B.C., the industry is particularly well served by the unique

integrated membership that flows from the regional (Vancouver Regional Construction Association and others) to the provincial (BCCA) and the national (Canadian Construction Association) boardrooms. This non-autocratic, industry-driven approach to representation and advocacy has yielded impressive results, including: •The Skilled Trades Employment Program (STEP) has offices across B.C., sourcing more than 10,000 British Columbians for construction jobs.

•BidCentral has boots on the ground in every region, and has grown into a recognized brand firmly established as B.C.’s largest construction bidding marketplace, despite a fiercely competitive landscape.

•T he Deputy M i n ister’s Industry Infrastructure Forum provides an action-oriented means by which government

Chris Atchison, new president of the BCCA | submitted

a nd i ndu s t r y a d d re ss key issues in the sector, like prompt payment.

•The LNG Canada Trades Training Fund continues to support B.C. apprentices with $1.5 million in private funding for Level 1-4 courses across the province.

•The BCCA Employee Benefits P rog ra m is ta i lored to suit the needs of construction employers.

To d ay, t he BCC A d i rect ly

supports more than 12,000 construction employers every year, through the extended reach of its many free programs and services.

Chris Atchison will shape the future with a focus on collaboration with the regional associations.

Membership value is always a priority, and includes the industrywide advocacy that ensures all construction employers across the province are getting the resources they need to succeed.

“Canada is uniquely positioned in the world, and B.C. is uniquely positioned within Canada,” Atchison said. “I’m noticing a remarkable drive toward collaboration and inclusion in this sector that traditionally may have been more competitive. It’s an inspiring time to be at the BCCA.”• The British Columbia Construction Association is the province’s voice of the construction industry, supported by four regional associations throughout B.C.

DAY IN THE LIFE: With Colin Rink, HSE co-ordinator with PCL Constructors Westcoast Inc. Construction in Vancouver spent the day at the Cargill grain terminal in North Vancouver

By Mark Pashley

C

olin R in k got i nto t he construction industry by accident. Growing up, he had his sights set on becoming a paramedic.

He was renewing his Level 3 first aid when he was approached by someone who worked for a safety company and was looking for construction safety officers. From

BUILDING SOMETHING BETTER

there, he decided to take a twoweek “crash course” in safety at the British Columbia Institute of Technology (BCIT), and jumped right into his new career in construction safety.

“At that time it was very busy in safety and even in construction in general,” said Rink, who has worked as a health, safety and environmental (HSE) co-ordinator with PCL Constructors Westcoast

Inc. for the past five years. “If you quit one job you could literally walk onto a construction site and get another job. They were hurting for people everywhere.”

After he had worked on some small residential projects in Vancouver, the chance to take part in projects for the 2010 Olympic and Paralympic Winter Games came down the pike. Over several months as the safety lead,

BEST

IN CLASS

Rink oversaw the safe erection and demolition of the media resources centre at the Vancouver Convention Centre.

“It was actually quite challenging because there were a lot of different countries with a lot of different regulations that needed to be navigated in different languages,” said Rink, adding that as a result, the job entailed many meetings and much planning to

ensure the process went off without a hitch.

While it’s hard to top one of the biggest sporting events in the world, Rink has continued to have an eventful career in safety, despite being less than 10 years into his field of choice.

The first job he worked with PCL was on the BC Place roof Continued on Page B8

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Contact: Rob Wesley, CPA, CA Greater Vancouver Regional Leader Real Estate & Construction Services T: 604.536.7614 E: rob.wesley@mnp.ca

Craig Donnelly, CPA, CA Vancouver Leader Real Estate Services T: 604.637.1523 E: craig.donnelly@mnp.ca

April 11–17, 2017

special news feature | Vancouver regional construction Association

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Court to weigh in on notice of labour and material bonds

By Christopher Hirst and Norm Streu

S

The majority emphasized that the act provides a means by which Valard could legally compel Bird to provide information about a bond

hould a principal under a labour and material bond be obligated to give trades notice of the existence of the bond?

The Supreme Court of Canada will let us know when it makes its determination in Valard Construction Ltd. vs. Bird Construction Co. By way of background, a labour and material payment bond is a guarantee that the bonded contractor will pay all claimants for goods and services supplied for the project. A contractor or supplier that has a direct contract with the bonded contractor to supply goods or services to the job can submit a claim for payment under the labour and material bond.

I n Va l a rd vs. Bi rd , Va la rd Construction Ltd. was a subcontractor to Langford Electric Ltd., which in turn was a subcontractor to Bird Construction Co. on an oilsands project.

Bird was the general contractor, and a term of its contract with Langford required Langford to obtain a labour and material (L&M) bond for the benefit of those who worked on the project under Langford. Before substantial completion, Langford became insolvent and did not pay

Valard. Unfortunately, Valard did not have a copy of Langford’s contract with Bird. In addition, it made no timely inquiries as to whether or not an L&M bond existed, and by the time Valard found out about the L&M bond, the standard 120-day notice period pursuant to the bond had long since expired and its claim under the bond was denied as a result.

Valard Construction then sued Bird Construction for the limit under the bond, alleging that Bird breached its duties as the bond trustee to Valard Construction, a bond beneficiary.

Two of the three judges of the Alberta Court of Appeal who heard the appeal disagreed that there was any such breach. The judges found that Valard was a large, experienced and sophisticated contractor. It was familiar with bonds. Moreover, the majority emphasized that Alberta’s Builders Lien Act provides a means by which Valard could legally compel Bird to provide information about a bond. The court also noted that Valard had elected not to make inquiries about the existence of a bond in a timely way because it “did not want to rock the boat.” These facts, according to the majority, entirely removed Valard from Canadian law that affords

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protections to those who are found to be in reliance-based relationships.

There was, however, a dissenting opinion.

The dissenting judge found that it was obvious that Valard Construction would have derived a benefit from knowing that a labour and material payment bond existed. Moreover, had Valard Construction known of the bond within the 120-day period after it last performed work under its contract with Langford, it would have submitted a large claim to the bonding company.

That determination, according to the dissent, was sufficient to trigger Bird Construction’s obligations as a trustee to take reasonable measures to alert Langford’s subcontractors about the bond’s existence.

Furthermore, the dissenting argument went, given the ease of identifying potential beneficiaries (subcontractors with contracts in excess of $100,000), the potential benefit to subcontractors such as Valard Construction of being a beneficiary and the low cost of bringing the bond’s existence to the attention of subcontractors, Bird, as the bond trustee, had an obligation to take reasonable measures to bring the bond’s existence to the attention of Langford’s subcontractors.

The dissenting judge emphasi zed t h at rea son able communication measures are not an onerous task and that Bird Construction could have met this obligation simply by posting the bond at a conspicuous place at the project and requiring Langford to include a notice term in its contracts with subcontractors.

Ultimately, the Supreme Court will have the final say on this issue. In the meantime, if you are a trade faced with a similar situation you should not hesitate to avail yourself of the information provisions of the Builders Lien Act to compel information from general contractors about the existence of bonds on a project. Similarly, if you are a general contractor you should consider whether you need to take any steps to alert trades as to the existence of applicable L&M bonds. There is little cost to do so but potentially significant exposure if the Supreme Court agrees with the dissenting judge in the Alberta Court of Appeal. • Norm Streu is president and chief operating officer of the LMS Reinforcing Steel Group. Christopher Hirst is a partner and the leader of the construction and engineering group, Alexander Holburn Beaudin + Lang LLP.

day in the life Continued from page B7

expansion project – a massive undertaking involving over 1,000 workers and a whole safety command tree.

Now as an HSE co-ordinator, Rink’s work is to ensure the integrity of the safety systems on any given project. It’s his job to know what each job initiative entails and what the regulations are, as well as to establish, reinforce and communicate the right safety processes and due diligence procedures.

He has had the chance to do all of that as a leader in safety on a variety of other projects, including work at Surrey City Hall, the Vancouver Aquarium and now a renovation project at the Cargill grain terminal in North Vancouver.

“A lifetime of learning essentially is what my job entails,” Rink said. “It keeps things fresh.”

That constant and continued learning, for Rink, includes completing BCIT’s certificate in occupational health and safety, as well as obtaining his Gold Seal certification and Canadian Registered Safety Professional designation. For his current work at Cargill, Rink also took a weeklong Canadian Rail Operating Rules course to earn his railway safety certification.

“Safety is an ongoing, changing thing – always,” he said. “It’s almost like an artist – you’ve got to be careful that you don’t get

Colin Rink in front of the Cargill grain terminal in North Vancouver | VRCA

too comfortable in one place. It’s always changing and evolving and moving.”

At the height of the site’s track expansion project, Rink estimates, he was responsible for the safety of 200 workers. By comparison, his work at Surrey Civic Centre involved around 400.

At Cargill, Rink checks in on the ongoing lead abatement process several times a day to ensure those carrying out the work are following through with their plan and safe work procedures. It’s a multifloor project, and each task has its own set of challenges.

“I like working with people and making a difference,” said Rink, who considers organization and communication to be critically important to the work he undertakes. “I know that at the end of the day when I’ve done my job, I’ve done some good.” •