Construction Economist - Winter 2023

british columbia prairies & Northwest territories

ontario

Quebec

maritimes

newfoundland & labrador

QUANTIFYING CARBON IN BUILDING AND CONSTRUCTION Page 13

ADVOCACY ON THE HILL: PROPELLING PROMPT PAYMENT AND GREATER INVOLVEMENT IN INFRASTRUCUTRE PLANNING Page 16

LEADERSHIP PROFILE WISSAM AYOUB Page 22

winter 2023

construction economist The Journal of the Canadian Institute of Quantity Surveyors Le Journal de l’Institut canadien des économistes en construction

FEATURES Quantifying Carbon in Building and Construction

Page 13

Part 1 - Another introduction to greenhouse gases

Advocacy on the Hill:

Page 16

Propelling prompt payment and greater involvement in infrastructure planning

To promote the professional status of Institute members by establishing and maintaining high standards and ethics, and fostering excellence through education and the interchange of knowledge and partnership with industry stakeholders.

Canadian Institute of Quantity Surveyors (CIQS) 90 Nolan Court, Unit 19 Markham, ON L3R 4L9 905.477.0008 | 1.866.345.1168 info@ciqs.org

CIQS EDITORIAL TEAM Chief Executive Officer Sheila Lennon, CAE ceo@ciqs.org Managing Editor Arif Ghaffur, PQS(F) editor@ciqs.org Assistant Editors Kelsey Wright, Member Services Coordinator

Prompt Payment and Lien Legislation Reforms in Western Canada

Page 19

Leadership Interview: Wissam Ayoub, EllisDon

Page 22

The CIQS HUB:

Page 24

Layout Design Alexandra Parliament,

A website designed for the leaders of tomorrow

Project Profile: $1 Billion Maple Ridge Battery Factory

Page 25

Annual CIQS Holiday Dinner, Toronto

Page 31

Special guest speaker, Angela Clayton with Infrastructure Ontario

Nuances of International Arbitrations:

Page 32

Relevance to Canada

Embracing the AI Revolution in Construction:

Page 34

Turning disruption into opportunity

Page 37

Canadian Construction: Indicators of Growth, Composition & Change

messages Page 4

CEO’s Message

Page 8

Education Congratulations YQS

Director Marketing & Communications

marketing@ciqs.org

ciqs board of directors Chair: Arif Ghaffur, PQS(F) Vice-Chair: Tammy Stockley, PQS(F) Past Chair: Erin Brownlow, PQS(F) Directors: Ajibola Soboyejo, PQS Antoine Aurelis, PQS Dominic Leadsom, PQS Ibrahim Oladapo, PQS Kerry Mohur, PQS Marc Brown, PQS Observer: Roy Lewis, PQS(F) Observer, International Relations: David Dooks, PQS(F) Observer, YQS: Mykola Pulnyev, PQS

corners

Chair’s Message

memberservices@ciqs.org Ajibola Soboyejo, PQS Shane McKernan, PQS

Page 27 Page 39 Page 24

Statements of fact and opinion contained within this journal are those of the authors, including subject matter experts.

CIQS assumes no responsibility or liability for the content of such fact and opinion, nor do they represent the official policy of CIQS.

Chair’s Message

Human Capital Challenges & Emerging Norms Arif Ghaffur, PQS(F)

S

ustainability is a term often used in construction as it relates to conducting business to reduce impacts on our environment. It is interesting to have increasingly heard this term in the context of the availability and adequacy of people, i.e., human capital. The question is, from where are people going to come to feed the requirement for construction projects of varying scales and complexities such that the industry itself is sustainable?

Based upon my recent conversations with specialists in human resources and in reviewing data analytics in this arena, I believe it is evident that current and forecasted intensity and volume of work over the next decade will be severely challenged by a shortage of sufficient and adequately trained construction professionals. This should be of particular interest to quantity surveyors and estimators of every level, irrespective of geographical location.

Those tasked with delivering construction programs and project right across the worlds are faced with having to compete for personnel at all levels of the construction pyramid. This in the backdrop of a workforce that is aging and a younger generation that does not necessarily view construction to be an attractive career choice.

4 Construction Economist | Winter 2023 | www.ciqs.org

Alone we can do so little; together we can do so much

Helen Keller - American author, disability rights advocate, political activist and lecturer

Both professionals making themselves available to new opportunities, and their rapidly reducing time spent with employers prior to changing jobs, present challenges of continuity, knowledge transfer, and succession within organizations. This, coupled with other industries competing for the same resources, compounds the ongoing challenges faced by the construction industry.

This reality of human capital challenges is requiring employers to look at how they source, engage, and retain talent. Other than the usual financial benefits, it is interesting to note the shift towards providing employees with other intangible benefits, such as flexible working arrangements, opportunities to upskill/reskill, wellness initiatives, and a greater shift towards achieving work/life balance. This is a challenge faced by the international construction

industry and is not limited to Canada.

I was delighted to attend the Pacific Association of Quantity Surveyors (PAQS) board meetings and Congress in Kuala Lumpur, Malaysia this September where there were focused discussions on innovation and the future of the global construction industry. These included a discussion about human capital challenges.

Thought leaders from over 15 countries engaged in sharing knowledge for the betterment of our profession, requiring solutions and lasting approaches. Many of those whom I met at PAQS expressed concerns around the capacity and capability restraints of delivering, particularly large-scale construction projects.

In parallel, employers are also having to rethink their approaches as they consider the advancements

Figure 1: PAQS board members, Kuala Lumpur, Malaysia, 2023

Chair’s Message

in digital platforms, e.g., Building Information Management (BIM) and Modular Integrated Construction (MiC), which catch the eye of the technology-driven individuals.

These, along with advancements in artificial intelligence, are becoming conduits for attracting talent such as Gen Z.

smartly seek beyond the limits of financial benefits. This ongoing paradigm shift to the traditional human resources landscape has direct impact upon our profession which has been traditional in attracting and developing talent.

As mentioned in my editorial, the multifaceted and multidimensional

it is interesting to note the shift towards providing employees with other intangible benefits, such as flexible working arrangements, opportunities to upskill/reskill, wellness initiatives, and a greater shift towards achieving work/life balance.

As a result, the turf for talent is creating competition with employers having to expound their value proposition not just to clients but also potential employees who

ecosystem requires our profession to be nimble and adept at delivering our expertise in quantity surveying and estimating in a manner that is characterised by professionalism in

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behaviours and actions that are coming under increasing scrutiny.

New norms are therefore required as we tackle human capital challenges.

In closing, I extend heartfelt thanks to our members, friends, and family for your encouragement as the CIQS continues to elevate itself and as I work with the board to achieve its objectives. I wish you all the best for the months ahead and look forward to every opportunity to meet members who continue their excellent work in advancing construction economics right across Canada!

Respectfully submitted, Arif Ghaffur, PQS(F) Chair, CIQS

Message du Président du Conseil

Les défis du capital humain et les normes émergentes Arif Ghaffur, PQS(F)

L

a durabilité est un terme souvent utilisé dans le secteur de la construction pour désigner la conduite d’activités visant à réduire l’impact sur l’environnement. Il est intéressant de noter que l’on entend de plus en plus souvent ce terme dans le contexte de la disponibilité et de la pertinence des personnes, c’est-à-dire du capital humain. La question est de savoir quelle sera l’origine des personnes répondant à la demande de projets de construction de tailles et de complexités diverses, de manière à permettre que le secteur lui-même soit durable.

D’après les conversations que j’ai eues récemment avec des spécialistes des ressources humaines et l’analyse des données dans ce domaine, je pense qu’il est évident que l’intensité et le volume de travail actuels et prévus au cours de la prochaine décennie seront gravement compromis par une pénurie de professionnels de la construction en nombre suffisant et convenablement formés. Cela présente un intérêt particulier pour les économistes en construction et les estimateurs de tous niveaux, quelle que soit leur situation géographique.

Les personnes chargées d’exécuter des programmes et des projets de construction dans le monde entier

6 Construction Economist | Winter 2023 | www.ciqs.org

Seuls, nous ne pouvons pas faire grand-chose ; ensemble, nous pouvons faire beaucoup Helen Keller - Auteur américain, défenseur des droits des personnes handicapées, activiste politique et conférencier

sont confrontées à la concurrence pour le recrutement de personnel sur des marchés géographiques croisés où la demande de personnel de construction est énorme et croissante à tous les niveaux de la pyramide de la construction. Tout ceci dans le contexte d’une main-d’œuvre vieillissante et d’une nouvelle génération qui ne considère pas nécessairement la construction comme un choix de carrière attrayant.

Le fait que les professionnels se rendent disponibles pour de nouvelles opportunités et que le temps qu’ils passent avec leur employeur avant de changer d’emploi diminue rapidement pose des problèmes de continuité, de transfert de connaissances et de succession au sein des organisations. Cette situation, à laquelle s’ajoute la concurrence d’autres industries pour les mêmes ressources, aggrave les défis

permanents auxquels est confronté le secteur de la construction.

Cette réalité des défis liés au capital humain oblige les employeurs à examiner la manière dont ils recrutent, mobilisent et retiennent les talents. Outre les avantages financiers habituels, il est intéressant de noter l’évolution vers la prestation aux salariés d’autres avantages intangibles, tels que des modalités de travail flexibles, des possibilités de montée en compétences/recyclage professionnel, des initiatives en matière de bien-être et une plus grande volonté de parvenir à un équilibre entre vie professionnelle et vie privée. Il s’agit d’un défi auquel est confrontée l’industrie internationale de la construction, qui ne se limite pas au Canada.

J’ai eu le plaisir d’assister aux réunions du conseil d’administration et au congrès de la Pacific Association of Quantity Surveyors

Figure 1 : Membres du conseil d'administration du PAQS, Kuala Lumpur, Malaisie, 2023

Message du Président du Conseil

(PAQS) à Kuala Lumpur, en Malaisie, en septembre 2023, où les discussions ont porté sur l’innovation et l’avenir de l’industrie mondiale de la construction. Ces événements ont notamment comporté des discussions sur les défis liés au capital humain.

Des leaders d’opinion de plus de 15 pays se sont engagés à partager leurs connaissances pour améliorer notre profession, en exigeant des solutions et des approches durables. Beaucoup de ceux que j’ai rencontrés aux événements du PAQS ont exprimé des inquiétudes quant aux contraintes de capacité et d’aptitude à réaliser des projets de construction, en particulier des projets de grande envergure.

Parallèlement, les employeurs doivent également repenser leurs approches en tenant compte des avancées des plateformes numériques, telles que la gestion des informations du bâtiment (Building Information Management ou BIM) et la construction

modulaire intégrée (Modular Integrated Construction ou MiC), qui attirent l’attention des personnes s’intéressant à la technologie. Ces éléments, ainsi que les progrès de l’intelligence artificielle, deviennent des moyens d’attirer les talents, notamment ceux de la génération Z. Par conséquent, la course aux talents crée une concurrence entre les employeurs qui doivent expliquer leur proposition de valeur non seulement aux clients, mais aussi aux employés potentiels qui cherchent intelligemment à dépasser les limites des avantages financiers. Ce changement de paradigme en cours dans le paysage traditionnel des ressources humaines a un impact direct sur notre profession qui a toujours eu une approche traditionnelle envers l’attrait et le développement de talents.

Comme je l’ai mentionné dans mon éditorial, cet écosystème multiforme et multidimensionnel exige de notre

profession qu’elle fasse preuve d’agilité et qu’elle s’adapte pour fournir son expertise en matière d’économie en construction et d’estimation de façon à ce que le professionnalisme caractérise les comportements et les actions qui font l’objet d’un examen de plus en plus minutieux. De nouvelles normes sont donc nécessaires pour relever les défis du capital humain.

En conclusion, je remercie sincèrement nos membres, nos amis et ma famille pour leurs encouragements alors que l’ICÉC continue à s’élever et que je travaille avec le conseil d’administration pour atteindre ses objectifs. Je vous souhaite le meilleur pour les mois à venir et j’attends avec impatience chaque occasion de rencontrer les membres qui poursuivent leur excellent travail pour faire progresser l’économie en construction au sein du Canada !

LA CONSTRUCTION AU CANADA: CHANGEMENT DE PARADIGME OU STATU QUO? Inscrivez-vous sur www.ciqs.org/congress

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CEO’s Message

CIQS: the gatekeeper of the ethics and standards for construction and infrastructure economics in Canada Sheila Lennon, CAE

A

s we wrap up another membership year, I have taken a moment to reflect on our monumental achievements over the last twelve months. The CIQS team, which includes staff, volunteers and consultants, have truly outdone themselves in our quest to be the voice for Canada’s construction economists.

National Advocacy Initiative 2023 marks the second year that a CIQS delegation travelled to Ottawa to meet with Members of Parliament to share with them how working with Professional Quantity Surveyors on infrastructure projects can help deliver sustainable value to tomorrow’s needs, thereby achieving the best possible return on public investment.

As part of the October 2023 Hill Day, the CIQS held its first-ever press conference on Parliament Hill, discussing the need for urgent reform in the face of the current affordability and housing crisis. The CIQS press team (Sean Hollywood, Tammy Stockley, and I) also touches briefly on the federal government’s delay in implementing the Federal Prompt Payment for Construction Work Act, which was approved in 2019.

Leading up to the October Hill Day, the CIQS launched a Push Politics campaign asking members to write to their local member of parliament about the importance of implementing the prompt payment act. We are pleased to report that 114 letters were sent from www.count-on-us.org in support of this campaign.

Fostering Excellence The CIQS’s mission is to promote the professional status of Institute members by establishing and maintaining high standards and ethics, fostering excellence through education and the interchange of knowledge, and partnership with industry stakeholders.

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As such, the responsibility of the CIQS is not only to ensure that its members meet appropriate standards of competence, ethics and professionalism, but also to maintain a disciplinary process that: established fair processes that consider the interests of the public, the profession, and the individual member, promotes timely determination of proceedings in accordance with the public interest, ensures that processes and procedures are clear, understandable, timely and transparent, and allows members to participate in the process, with or without legal representation.

Further details about changes to the disciplinary process and the new Rules of Practice and Procedure can be found online in the CIQS National Standards on www.ciqs.org under the Members/Tribunals and Hearings Tab.

Continuing Professional Development The Continuing Professional Development (CPD) program is another initiative that ensures that all CIQS members remain current on industry skills and technologies.

Beginning in early 2024, and like other Canadian professional organizations, members will be mandated to maintain detailed records of their CPD activities.

This requirement will provide proof of compliance with the requirement to annually earn 50 CPD points - a prerequisite to maintaining designations in 2025.

CEO’s Message

Beginning in early 2024, all PQS and CEC members will be required to maintain detailed records of their CPD activities There are several ways that Members can earn their CIQS CPD points, such as by: attending CIQS webinars and other Institute events, listening to each episode of the CIQS podcast, “Knowledge Counts”, volunteering time to your Institute as an Ambassador, or member of a local committee, chapter executive, or the CIQS board of directors, and attending CIQS Congress where you can earn upwards of 25 per cent of your annual requirement Taking Calgary by storm As reported in the last issue of the Construction Economist, Congress 2023 in Calgary, Alberta was a recordbreaking event with over 160 delegates attending from Nigeria, the Bahamas, and across Canada. This year’s keynote lineup also made headlines with Greg McLean, MP Calgary Centre (Alberta) sitting down for a fireside chat with Huw Williams, president of IMPACT Public Affairs on day one, followed by an interactive presentation on day two on “Collaborative Behavioural Assessment and Relational Contracting” by Mitch Clark, managing consultant, BTTC Canada, and Georgina Murphy, managing consultant, BTTC Manchester, England.

Learning from, and networking with, industry subject matter experts offer excellent return on investment, educational, and career advancement levels. Learn more about how you can get involved in Congress 2024 in Toronto at www.ciqs.ca/congress.

We are very proud of the positive reputation our members have earned globally, and we thank them for not only supporting our CIQS events and initiatives, but also by continuously fostering excellence by keeping up-to-date with industry standards and new technologies through personal continuing professional development.

www.ciqs.org | Winter 2023 | Construction Economist

9

Message du Directrice Générale

L’ICÉC : Gardien de l’éthique et des normes pour l’économie de la construction et des infrastructures au Canada.

Sheila Lennon, CAE

A

lors qu’une nouvelle année d’adhésion touche à sa fin, j’ai pris le temps de réfléchir aux réalisations monumentales que nous avons accomplies au cours des douze derniers mois. L’équipe de l’ICÉC, qui comprend le personnel, les bénévoles et les consultants, s’est vraiment surpassée dans sa quête pour être la voix des économistes en construction du Canada.

Initiative de sensibilisation nationale En 2023, une délégation de l’ICÉC s’est rendue pour la deuxième année consécutive à Ottawa pour rencontrer des membres du Parlement et leur expliquer comment la collaboration avec des économistes en construction agréés sur des projets d’infrastructure peut aider à fournir une valeur durable pour les besoins de demain, permettant ainsi d’obtenir le meilleur retour possible sur l’investissement public.

Dans le cadre de la Journée de la Colline d’octobre 2023, l’ICÉC a tenu sa toute première conférence de presse sur la Colline du Parlement, discutant de la nécessité d’une réforme urgente face à la crise actuelle de l’accessibilité et du logement. L’équipe de presse de l’ICÉC (Sean Hollywood, Tammy Stockley et moi-même) a également abordé brièvement le retard pris par le gouvernement fédéral dans la mise en œuvre de la Loi fédérale sur le paiement rapide des travaux de construction, qui a été approuvée en 2019.

En amont de la Journée de la Colline d’octobre, l’ICÉC a lancé une campagne Push Politics, demandant aux membres d’écrire à leur député local sur l’importance de la mise en œuvre de la loi sur le paiement rapide.

Nous avons le plaisir d’annoncer que 114 lettres ont été envoyées par le biais de www.count-on-us.org pour soutenir cette campagne.

10 Construction Economist | Winter 2023 | www.ciqs.org

Favoriser l’excellence La mission de l’ICÉC est de promouvoir le statut professionnel des membres de l’Institut en établissant et en maintenant des normes et une éthique élevées, et en favorisant l’excellence par l’éducation et l’échange de connaissances et le partenariat avec les parties prenantes de l’industrie.

Ainsi, il n’incombe pas seulement à l’ICÉC de s’assurer que ses membres répondent à des normes appropriées de compétence, d’éthique et de professionnalisme, mais également de maintenir un processus disciplinaire qui : ·met en place des procédures équitables qui tiennent compte des intérêts du public, de la profession et du membre en question ; ·favorise le règlement des procédures en temps utile, conformément à l’intérêt public ; ·veille à ce que les processus et les procédures soient clairs, compréhensibles, opportuns et transparents ; ·et permet aux membres de participer au processus, avec ou sans représentation légale.

De plus amples informations sur les changements apportés à la procédure disciplinaire et les nouvelles règles de pratique et de procédure sont disponibles en ligne dans les Normes nationales de l’ICÉC www.ciqs.org sous l’onglet Adhésion/Tribunal et audiences.

Programme de développement professionnel Le programme de développement professionnel continu (DPC) est une autre initiative qui permet à tous les membres de l’ICÉC de garder à jour leurs compétences et technologies liées au secteur. À partir de début 2024, et à l’instar d’autres

Message du Directrice Générale

À partir du 1er janvier 2024, tous les membres du PQS et de la CEC devront tenir des registres détaillés de leurs activités de DPC. organisations professionnelles canadiennes, les membres doivent tenir des registres détaillés de leurs activités de DPC. Cette exigence fournira la preuve de la conformité à l’obligation d’obtenir chaque année 50 points de DPC, condition préalable au maintien des titres en 2025.

Les membres peuvent obtenir leurs points de DPC de plusieurs manières, par exemple : en participant aux webinaires de l’ICÉC et à d’autres événements de l’Institut ; en écoutant chaque épisode du balado de l’ICÉC, « Knowledge Counts » ; en consacrant du temps à votre Institut en tant qu’ambassadeur ou membre d’un comité local, du comité exécutif d’un chapitre ou du conseil d’administration de l’ICÉC ; ou en participant au congrès de l’ICÉC, où vous pouvez obtenir jusqu’à 25 % de vos exigences annuelles.

La ville de Calgary prise d’assaut Comme indiqué dans le dernier numéro de Construction Economist, le Congrès 2023 qui s’est tenu à Calgary, en Alberta, a battu tous les records avec plus de 160 délégués venus du Nigéria, des Bahamas et de tout le Canada. Les présentateurs des discours liminaires de cette année ont également fait les gros titres. Le premier jour, Greg McLean, député de Calgary Centre (Alberta), s’est entretenu avec Huw Williams, président d’IMPACT Affaires Publiques. Le deuxième jour, Mitch Clark, consultant en chef de BTTC Canada, et Georgina Murphy, consultante en chef du BTTC Manchester (Angleterre), ont présenté un exposé interactif sur « L’évaluation comportementale collaborative et les contrats relationnels ».

L’opportunité d’apprendre auprès d’experts en la matière et de développer son réseau offre un excellent retour au niveau de l’investissement, de la formation et de l’avancement de carrière. Pour en savoir plus sur la manière dont vous pouvez participer au Congrès 2024 à Toronto, consultez le site www.ciqs.org/congress.

Nous sommes très fiers de la réputation positive que nos membres ont acquise au niveau mondial, et nous les remercions non seulement pour leur soutien apporté aux événements et initiatives de l’ICÉC, mais également pour leurs efforts continus pour encourager l’excellence en restant informé des normes de l’industrie et des nouvelles technologies grâce à un développement professionnel personnel continu.

www.ciqs.org | Winter 2023 | Construction Economist 11

all about designations In 1998, CIQS obtained the marks PQS (Professional Quantity Surveyor) and the French equivalent ÉCA (Économistes en Construction Agréé). These designations replaced MCIQS. Later, CIQS also obtained the official marks CEC (Construction Estimator Certified) and ECC (Estimateur en Construction Certifié).

CIQS grants Members a license to use these designations, provided they are qualified and in good standing. Here is a list of acceptable (provided you are a qualified member of CIQS and in good standing) and unacceptable designations:

tout sur les désignations En 1998, l'ICEC a obtenu les marques ÉCA (Économistes en Construction Agréé) et l'équivalent anglais PQS (Professional Quantity Surveyor). Ces désignations ont remplacé le MCIQS. Plus tard, l'ICEC a également obtenu les marques officielles CEC (Construction Estimator Certified) et ECC (Estimateur en Construction Certifié).

L'ICEC accorde à ses membres une licence leur permettant d'utiliser ces désignations, à condition qu'ils soient qualifiés et en règle. Voici une liste des désignations acceptables (à condition d'être un membre qualifié de l'ICEC et en règle) et inacceptables :

Sunrise over the earth. The sun’s heat radiated from earth surface, is trapped within the atmosphere by greenhouse gases.

Image license: creative commons, author unknown

Quantifying Carbon in building and construction Part 1 - Another introduction to Greenhouse Gases Ayo Daniel Abiola, P.Eng, PQS

T

o protect earth’s ability to support human lives now and into the far future, global experts have determined that it is important to reduce the levels of the so called, greenhouse gases (GHG) emitted into the atmosphere. Greenhouse gases get their names from having properties that allow them to trap radiated solar heat within the atmosphere and causing temperatures to rise. Examples of these gases include water vapour (H2O), carbon dioxide (CO2), methane (CH3), nitrous oxide (NO2), and ozone (O3). According to the British Geological Society, the presence of these gases in our atmosphere is why earth’s temperature is at a livable average of 15oC and without them, the earth’s temperature would be around -20oC. Likewise, if we accumulate too much of the greenhouse gases, earth’s temperature will rise above the threshold needed for human

survival. The hottest planet in our solar system, Venus, has an average temperature of 465oC due to its atmosphere comprising 96% carbon dioxide, which traps almost a third of the solar heat.

Since the industrial revolution began over 150 years ago, GHG emitted into earth’s atmosphere through human activities has been increasing faster than they did before the era. Subsequently the rate of global temperature increase has accelerated and is projected to reach dangerous levels within our lifetime. This phenomenon is known as global warming.

The ability of a greenhouse gas to warm the atmosphere (by absorbing and radiating heat energy) is known as its global warming potential (GWP). CO2 is assigned the reference GWP of 1, and all other greenhouse gases are rated against it. The GWP for all the gases are usually compared against that of CO2 over a common time period.

For example, over a 100-year period, the Sixth Assessment Report (AR6)1 indicates that the global warming potential of 1 ton methane (CH4) relative to 1 ton of carbon dioxide is 27.9, and that of NO2 is 273.

Table 1 shows the GWP (over 100 years) of major greenhouse gases and other gases common to the building and construction sector, and their common source of emissions.

Table 1: Some greenhouse gases (GHG), their 100-year global warming potentials (GWP) and most common sources

www.ciqs.org | Winter 2023 | Construction Economist 13

Carbon dioxide is chosen as the reference gas for GWP because: 1. It is the most abundant greenhouse gas in the atmosphere, 2. It stays longer in the atmosphere than all other greenhouse gases (e.g., CH4 emitted today will last about 10 years on average compared to 300–1,000 years for CO2), and 3. It is the main driver of human induced global warming through multiple activities including fossil fuel combustion, land use, cement production, and metal smelting, etc.

It is for these reasons that carbon emissions, (or simply ‘carbon’), are commonly used in place of greenhouse gas emissions, even though multiple gases are responsible for global warming.

Carbon and Buildings Buildings are essential for our society, but they also have a significant impact on the emissions of carbon into the atmosphere. When we think of the environmental impact of buildings, we often focus on the emissions that result from their operation. Their heating, cooling, lighting, and ventilation systems are driven by energy sources that emit carbon into the atmosphere. To reduce their energy usage, and hence emission levels, we often consider how well they are insulated, how properly they are sealed, etc. Emissions driven by building operations are known as operational carbon. However, another aspect of building emissions performance that is equally important, but often overlooked, is the embodied carbon of building materials and processes.

Embodied carbon is the amount of greenhouse gas (GHG) emissions associated with the entire life cycle of a building, from the extraction of raw materials to the manufacturing, transportation, installation, maintenance, and disposal of building components. Embodied carbon can also include emissions from land use

14 Construction Economist | Winter 2023 | www.ciqs.org

changes, such as deforestation or urbanization, caused by building development. Embodied carbon may be considered as the "upfront" carbon for a building, since it is emitted pre-commissioning, before the building is occupied and operational. In contrast, operational carbon is the amount of GHG emissions released during the use of the building, mainly from energy consumption for heating, cooling, lighting, and appliances.

The total emission footprint of a building includes its operational and embodied carbon. A broader framework known as Whole Life Carbon Emissions (WLCE) is defined in the ICMS, 3rd edition2. The WLCE of a building is the sum of carbon emitted through site acquisition, construction, renewal, operation, maintenance, and end-of-life. A wholistic quantification of carbon using this framework will be monumental to proper quantification of carbon in buildings. Globally, buildings are responsible for 39% of emissions, and available building stock is expected to almost double in 30 years, according to the World Green Building Council.

The Intergovernmental Panel on Climate Change (IPCC) warns that, to avert the worst effect of global warming by 2050, the world must accomplish rapid and far-reaching transitions to net zero emissions in all sectors, including buildings, to limit average1 global temperature rise to within 1.5°C compared to the pre-industrial era.

In Canada, the most recent available data from 2021 indicates that existing buildings released 87.2 MMTCO2e emissions. Construction standards and building codes are being updated across jurisdictions to ensure new constructions are built to low emission standards.

Existing building stocks will be pivotal to bringing down emission levels through renovations and deep retrofits.

Canada’s target is to reduce the building sector’s

emission by 33–38 MMTCO2e by 2030, and to reach net zero emissions by 2050. A building is said to achieve net zero when the total carbon it releases into the atmosphere is balanced by the total carbon it removes. Since the overall building stock in Canada is projected to significantly increase due to immigration, population rise, construction industry growth, climate change, etc., achieving net zero emission reductions in the building sector will require thoughtful and significant efforts. The proper quantification of carbon for existing buildings and new constructions will be critical to meeting these crucial targets.

ABOUT THE AUTHOR Ayo Daniel Abiola is the Founder/Principal of Avalanche Nation Services Inc., offering cost, energy, and sustainability consulting for Industrial, Commercial, and Institutional (ICI) properties in the Prairies, and across Canada.

Ayo is licensed to practise engineering in Saskatchewan and Ontario. He is also a Certified Energy Manager and a WELL Accredited Professional, having the skills and experience to foster health and wellness in the built environment. Ayo lives in Regina, Saskatchewan.

Next, Part 2 – The ICMS3 Whole Life Cycle Emissions Framework for Carbon Quantification Further Reading The Intergovernmental Panel on Climate Change. (2023, March 20). Sixth Assessment Report. IPCC. https://www.ipcc.ch/assessment-report/ar6/ ICMS Coalition. (2021, November). ICMS: Global Consistency in Presenting Construction Life Cycle Costs and Carbon Emissions. 3rd edition. https://icms-coalition.org/the-standard/

advocacy on the hill: propelling prompt payment and greater involvement in infrastructure planning Brandon Vieira

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his past October, the CIQS was back in Ottawa to meet with Parliamentarians and key stakeholders to discuss key issues in the construction industry. The primary focus was on advocating the enactment of Federal Prompt Payment legislation and solidifying the role of Construction Economists in Canada’s Longterm Infrastructure Plan. This advocacy signals a pivotal moment in the construction sector, aiming to enhance transparency, efficiency, and fair practices.

The urgency of prompt payment legislation Kicking off their time in Ottawa, CIQS representatives made us of the Parliamentary Press Gallery, hosting their first press conference on the Hill. Central to this press conference was the CIQS determination to see the government implement its prompt payment legislation passed in 2019. Prompt payment has been a longstanding issue in the construction industry, causing financial strain on contractors and hindering project timelines. To emphasize the severity of the problem, CIQS representatives presented compelling case studies, shedding light on instances where delayed payments led to project delays, financial instability, and even bankruptcy for some smaller contractors.

The yet-to-be enacted legislation, passed as part of Budget 2019, aims to set clear timelines for payments, creating a fair and transparent process for all parties involved. By pushing for the enactment of such legislation, the CIQS seeks to instill confidence in the construction sector, attract investment, and promote the overall health and sustainability of the industry.

While the CIQS advocates encountered support for the

16 Construction Economist | Winter 2023 | www.ciqs.org

initiatives, they also faced some concerns from parliamentarians. Critics questioned the feasibility of prompt payment legislation, expressing worries about its potential impact on contractual relationships and the administrative burden it might impose.

In response, the CIQS representatives engaged in open dialogue, addressing concerns with data-driven arguments and presenting successful models from other jurisdictions where prompt payment legislation has already been implemented. They emphasized that such legislation would ultimately foster healthier business relationship, reduce disputes, and create a more stable and resilient construction industry.

Highlighting the role of construction economists In addition to advocating prompt payment legislation, the CIQS focused on entrenching the involvement of construction economists in Canada’s Long-term Infrastructure Plan. Construction economists play a vital role in analyzing and forecasting economic trends within the construction sector, providing essential insights for long-term planning.

The CIQS argues that incorporating the expertise of construction economists in the infrastructure planning process would lead to more informed decision making.

By understanding the economic dynamics, potential risks, and market trends, policymakers can develop infrastructure plans that are not only robust but also adaptable to changing circumstances. Construction economists can contribute valuable input regarding cost estimates, resource allocation, and the overall economic impact of infrastructure projects.

CIQS DELEGATION

Collaboration with industry stakeholders CIQS lobbying efforts were not conducted in isolation, but in collaboration with various industry stakeholders to develop partnerships and share priorities. The united front presented a compelling case to lawmakers, emphasizing the broad support for prompt payment legislation and better infrastructure planning.

These collaborative efforts strengthened the industry’s collective voice, sending a clear message about the imperative need for change.

Sheila Lennon, CAE (Chief Executive Officer, CIQS | Tammy Stockley, PQS(F) (Vice-Chair, CIQS) | Sean Hollywood, PQS (Chair, External Relations Committee, CIQS) | Erin Brownlow, PQS(F) (Past Chair, CIQS) | Antoine Aurelis, PQS | Carl Pedersen, PQS(F) | David Dooks, PQS(F) | Dominic Leadsom, PQS | Tonus Tuinstra, PQS | Wyatt Clairmont, PQS

Round-up CIQS lobbying efforts on Parliament Hill marked a critical juncture in the evolution of the country’s construction industry. By advocating prompt payment legislation and pushing for the integral role of construction economists in longterm infrastructure planning, the CIQS aims to reshape the industry landscape for the better.

The success of these initiatives would not only bring about a more equitable payment system, but also ensure that infrastructure planning is guided by comprehensive economic analysis.

As the CIQS continues its advocacy, the hope is that Parliamentarians recognize the importance of these changes and enact the legislation that will propel the Canadian construction industry into a new era of efficiency, transparency, and sustainability ABOUT THE AUTHOR Brandon Vieira is a public affairs associate with Impact Public Affairs in Ottawa, Ontario. He works with a variety of clients, including the Canadian Institute of Quantity Surveyors, to engage government on Canadian infrastructure issues. www.ciqs.org | Winter 2023 | Construction Economist 17

ciqs press conference on parliament hill

ciqs praises enactment of federal prompt payment for construction work act On December 14, 2023, the Canadian Institute of Quantity Surveyors distributed a media statement welcoming the enactment of the Federal Prompt Payment for Construction Work Act that was announced by the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement on December 13, 2023.

This legislation is a crucial step towards fostering a fair and transparent construction industry. The new legislation will address long-standing challenges related to delayed payments, providing much-needed relief to contractors, sub-contractors, and suppliers across the country. We believe that this positive step will have a lasting impact on the construction sector, benefitting all stakeholders involved.

This legislative milestone was a focal point during CIQS’s most recent engagements on Parliament Hill this past October where we met many supporting parliamentarians from various parties. We look forward to continue cooperation with those parliamentarians and others in shaping policies that contribute to the success and sustainability of our dynamic industry.

Prompt payment and lien legislation reforms in western canada Seema Lal and Ali Aghaamoo

Largely as a result of lobbying efforts by numerous contractors and construction industry associations, many jurisdictions have brought into force, or are in the process of implementing, prompt payment legislation and other related lien legislation reform. for a prompt payment regime loosely based on the Ontario model in Ontario’s Construction Act but did not include any reference to any adjudication regime, other than a provision requiring the adjudication of a payment dispute, if a contractor issued a notice of non-payment on the basis of non-payment by the owner. A review of the bill, which did not pass First Reading, suggests that it may have been introduced as a precursor to a more robust government bill, which, to date, has not been tabled. There has been some suggestion that a new government sponsored bill may be tabled in late 2023 or early 2024.

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t this point in time, British Columbia appears to be lagging behind its neighbours in Western Canada in implementing prompt payment legislation and/or any other lien legislation reform. The British Columbia 1 Builders Lien Act was brought into force over 25 years ago, in 1997, and has not been amended since that time. As detailed below, some other Western Canadian jurisdictions have taken steps to follow the lead of Ontario, which was the first Canadian jurisdiction to implement prompt payment and adjudication 2 legislation (first passed in December, 2017), in bringing prompt payment and adjudication provisions into force.

British Columbia B.C.’s journey in relation to prompt payment legislation took a giant leap forward on May 28, 2019, when Bill M-223 - 2019 - Builders Lien (Prompt Payment) Amendment Act, 2019 was introduced by the BC Liberal House Leader, Mary Polak, as part of the Fourth Session of the 41st Parliament of the Legislative Assembly of British Columbia. The bill provided

Subsequently, with the encouragement of the Ministry of Justice and Attorney General, the British Columbia Law Institute undertook a major law reform project in relation to the Builders Lien Act. The project was completed with the issuance of the “Report on the Builders Lien Act”3 in July 2020, which included 86 recommendations for changes to the Act. The authors of the report, however, suggested that “the merits of prompt payment and interim adjudication legislation should be assessed in a separate process having the financial management of construction projects as its focus” and, further that such process “would require a significantly different combination of expertise and resources than the Project Committee possesses”.

4

In their “Report on the Budget 2023 Consultation” issued in August, 2022, the Select Standing Committee on Finance and Government Service recommended that the Government of British Columbia should “[p]rioritize the enactment of prompt payment legislation that is inclusive of lien reform and adjudication”. Earlier this year, the Committee released its “Report on the Budget 2024 5 Consultation” in which it was highlighted that prompt payment legislation is an important mechanism to support and provide certainty for small businesses and recommended that the provincial government “enact prompt payment legislation”.

In recent months, the Province announced that Attorney General Ministry staff had been given the approval to www.ciqs.org | Winter 2023 | Construction Economist 19

convene a large table working group to consult on the creation of Prompt Payment Legislation. The Provincial Government’s website advises that “starting in late 2023, Ministry of Attorney General staff will begin a large table consultation with all interested associations and interest groups in the construction industry to review the different legislation that has been adopted in other provinces to determine how prompt payment legislation could 6 work best in B.C.” To date, this working group has not issued any reports or recommendations and there is no publicly available information as to who the members of the group are and when they expect to table a report.

Alberta On August 29, 2022, Alberta’s Prompt Payment and Construction Lien Act7 came into effect, making it the third jurisdiction in Canada to enact prompt payment and adjudication legislation for the construction industry. All new contracts for construction entered into after August 29, 2022 are bound by the provisions of the new Act. Existing contracts that relate to work or services that are scheduled to be completed before August 29, 2024 do not need to be changed to adhere to the new Act. However, existing contracts that extend beyond August 29, 2024 must be amended to become compliant with the new Act by August 29, 2024.

Ontario was the first canadian jurisdiction to implement prompt payment and adjudication legislation Reports suggest that the construction industry in Alberta has welcomed the introduction of the new Act. The Act currently only applies to private sector projects and excludes projects under the Public Works Act of Alberta. According to the Provincial Government of Alberta’s website, the Provincial Government is “seeking input from the construction industry to understand their experiences with the Prompt Payment and Construction Lien (PPCLA) and regulations since coming into force on August 29, 2022, to help identify potential changes to improve the legislation and begin exploration of potentially applying payment principles to 8 Government of Alberta projects”.

The following is a brief overview of some of the relevant issues covered by Alberta’s new Act: Payment deadlines: an owner has 28 days to pay the amount or 14 days to issue a notice of dispute if they receive a “proper invoice” from a contractor. (s. 32.2); Contractors must then pay their subcontractors within seven days of receiving payment or deliver the required notices to the: failure to deliver notice of non-payment will result in the contractor being liable to pay their subcontractors within the required timelines (s. 32.3) Proper Invoice: S. 32.2(1) of the Act defines a “proper invoice” as “a written bill or other request for payment for the work done or materials furnished in respect of an improvement under a contract or a subcontract if the written bill or request for payment contains” the specific information and meets any other requirements as may be specified in the contract.

S. 32.1 (6) provides that “proper invoices must be given to an owner at least every 31 days”.

Adjudication S. 33.1 defines Adjudication as “construction dispute adjudication with respect to a prescribed matter”.

The Minister may designate one or more entities to act as a Nominating Authority to perform different duties, including arrange for the hearing by adjudicators of prescribed matters. (33.2) There is currently only one Nominating Authority in place, ARCANA AB

20 Construction Economist | Winter 2023 | www.ciqs.org

Manitoba On May 30, 2023, Bill 38: The Builders’ Liens Amendment Act (Prompt Payment) received Royal Assent in the Legislative Assembly of Manitoba. It will officially come into force at a date yet to be announced. Bill 38 aims to establish a prompt payment and adjudication regime in Manitoba, which regime includes the establishment of deadlines for payments, similar to the prompt payment and adjudication provisions in Ontario’s Construction Act. The bill proposes an adjustment of the lien filling timeline from the current timeline of 40 days to file a claim of lien to 60 days.

Saskatchewan Saskatchewan was the first western and the second Canadian province or territory to bring into force prompt payment and mandatory adjudication provisions. The new prompt payment and adjudication regime, as set out in The Builders’ Lien (Prompt Payment) Amendment Act, 2019 and The Builders’ Lien Amendment Regulations 2020 (SR 92/2020) came into force on March 1, 2022. The new provisions have been added to the existing lien regime and will continue to be known as The Builders’ Lien Act. The transition provisions of the new legislation provide that the new provisions will apply to contract entered into on or after March 1, 2022. The provisions are very similar to the Ontario prompt payment and adjudication regime.

It is without a doubt that prompt payment will eventually become a necessary feature of construction law across Canada in the next few years. As such, monitoring developments in this area will be important to ensure that project participants fully understand their responsibilities and obligations with respect to payments and lien rights.

About the authors Seema Lal is a partner and co-chair of the Construction and Infrastructure practice group at Singleton Urquhart Reynolds Vogel LLP. She is focused on the negotiation and preparation of construction contracts, procurement issues, builders’ liens, and construction dispute resolution, including claims for extras and delays. She seeks to provide strategic legal advice to assist her clients in making informed and effective legal and business decisions. Through her practice and her involvement in industry associations, she has built up an in-depth understanding of the construction sector and the unique issues facing its stakeholders. She is a Fellow of the Canadian College of Construction Lawyers, an association of lawyers who are distinguished for their skill and experience in the practice of teaching of construction law, has been ranked in the areas of Construction Law and Insurance Law by Best Lawyers Canada, has been recognized by The Legal 500 as a leading lawyer in Canadian Construction Law and has been featured in Doyle’s Guide list of leading construction, engineering and infrastructure litigation lawyers.

Ali Aghaamoo is currently an articled student at Singleton Urqugart Reynolds Vogel LLP. He received his Juris Doctor from the University of Ottawa in 2023. Prior to law school, Ali obtained a Bachelor of Laws and a Master of Intellectual Property Law from the University of Tehran. Prior to moving to Canada, Ali worked as a lawyer in Iran where he practiced in various areas of law, most notably being that of intellectual property and civil litigation. Ali also worked as in-house counsel at a multinational company and appeared before arbitral tribunals in Iran.

1 Builders Lien Act [SBC 1997] c. 45 2

Bill 142: Construction Lien Act Amendment Act, 2017

3

BCLI Report No. 89 - July, 2020 - https://www.bcli.org/wp-content/uploads/2020/07/Report-Builders-Lien-Act-final.pdf

4 https://www.leg.bc.ca/content/CommitteeDocuments/42nd-parliament/3rd-session/fgs/budget-consultation/Budget-2023-

Consultation-Report.pdf

5 https://www.leg.bc.ca/content/CommitteeDocuments/42nd-parliament/4th-session/fgs/reports/SSC-FGS_42-4-2_Budget-

2024-Consultation_Report.pdf

6 https://www2.gov.bc.ca/gov/content/justice/about-bcs-justice-system/legislation-policy/active-reviews/builders-lien-act-

prompt-payment

7 Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4 8

https://www.alberta.ca/prompt-payment-and-construction-lien-act-engagement www.ciqs.org | Winter 2023 | Construction Economist 21

leadership profile Wissam Ayoub, MBA, P.Eng Senior Vice President Middle East and North Africa (MENA) EllisDon

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issam Ayoub joined EllisDon in 2005 and is now Senior Vice President - Middle East and North Africa (MENA), heading EllisDon’s operations in the MENA region providing Project Management, Virtual Design and Construction, Energy and Digital Services, and Facility Management Consultancy for a portfolio of projects exceeding $20 Billion. EllisDon has been in the MENA region for the last 19 years, has six offices across multiple countries and more than 350 professional staff working across state-of-the-art projects with the leading developers in the region.

Prior to moving to the Middle East in 2013, Wissam was the Senior Project Director with Don’s Public Private Partnership “PPP” division in Toronto, Canada.

He worked on some of Canada’s first largest PPP projects.

Wissam completed his master’s degree in civil engineering in Lebanon and is a Professional Engineer (P.Eng) in Ontario. He also holds an MBA from the Schulich School of Business, York University, specializing in Real Estate, Infrastructure and Finance.

He is a “LEED Accredited Professional”, holds the “Gold Seal” in project management from the Canadian Construction Association, and is a Member of the Royal Institute of Chartered Surveyors (MRICS) in project management.

What is your connection with Canada and your current role with EllisDon in MENA? I immigrated to Canada in 2004 and started working for EllisDon in Toronto in 2005, and moved with EllisDon to Dubai in 2013. I am a Canadian citizen and have family living in Toronto and Ottawa. I remain involved with the Canadian business community in the region, whether in the UAE, Saudi or Quatar. I also visit Toronto twice a year for our bi-annual management meetings and to visit family. I stay connected with the market through the regular updates we get during our

22 Construction Economist | Winter 2023 | www.ciqs.org

Exit 10 Al Hamra

meetings and by speaking with the management team and my colleagues in Canada.

I am currently the Senior Vice President in the MENA region, in charge of our ongoing operations in four countries, the UAE, Saudi Arabia, Quatar, and Egypt, and six different offices. We provide project management, facility management consultancy, virtual design and construction, and energy and digital services.

EllisDon’s team has been constantly growing in the region with more than 250 staff, and part of my role is to focus on the steady and strategic growth and diversification of the business.

Are there any challenges that the construction industry is facing in the MENA region?

Every country in the MENA region has a different market which comes with its own challenges. The construction markets in Saudi Arabia and UAE are quite busy leading to a lot of pressure on resources, making it difficult to find, hire and retain the right talent. The boom in the construction industry market in Saudi and UAE makes it hard to keep up with the demand for talent and puts inflationary pressure on salaries and cost of living. There is also a shortage of mid-to-large scale contractors capable of delivering the ambitious projects in the pipeline. That also applies to the supply chain, including MEP and specialty subcontractors.

Quatar successfully completed the FIFA world cup, and we are waiting for new projects to be released. The devaluation of the currency is making the Egyptian market challenging.

What is the impact of these challenges, and how are they being dealt with?

As mentioned previously, our main challenge is to attract and retain talent. To do that, we need to be an employer of choice. We continue to focus on creating a unique company culture that is build on EllisDon’s core values of

key for us is to be selective in the projects we pursue, making sure we are working with the right clients and having the appropriate resources.

SeaWorld Abu Dhabi

freedom, trust, complete openness, mutual accountability, entrepreneurial enthusiasm, integrity, and mutual respect. We practice these values and make sure that every staff member feels that they are part of our growing family and not just a number. I spend a lot of my time connecting with our teams, getting to know them, and making them feel that they are heard and are valued members of EllisDon. This takes a lot of time and effort, but we want to make sure we practice what we say. EllisDon is an employee-owned company, and staff in the MENA region are given the same share ownership as staff in Canada and that reinforces our “One Company” focus as we are closely tied to our mothership in Canada.

I believe that our reputation as a company that cares for its staff is making a difference in attracting the right talent who shares our values.

Our company growth in the region also ensures there are opportunities for staff career advancement, which is also important for staff retention.

Are there innovations, emerging markets or ongoing/future opportunities?

The push for digital transformation and innovative building technology is very important in the construction and asset management world. EllisDon has created its own digital twin called “EKO”, and has already implemented it on three projects, including one project in the UAE. Through seamless integration of building systems and AI-enabled fault detection, EllisDon’s EKO platform provides insights into asset management that previously had not been possible.

We believe there is a big appetite in the market for this digital twin and we are at the forefront of this new technology.

We are also seeing huge opportunities in the UAE and Saudi Arabia for new projects and developments. The

Are you working on an interesting project that you would like to talk about?

There are many exciting projects that we are working on, including several entertainment and cultural projects.

The one project that I find very impressive is SeaWorld Abu Dhabi that opened in May 2023. EllisDon was the project management consultant and I am very proud of the team that delivered such an amazing project. They worked closely with Miral (the client and developer) and SeaWorld Parks & Entertainment to deliver this nextgenerational Marine Life Theme Park, setting new standards of excellence for the entertainment and construction industry. It includes the world’s largest indoor aquarium and features eight unique and immersive realms as well as the first marine research, rescue, rehabilitation and return center in the MENA region. This is a must see for anyone visiting Abu Dhabi.

What do you most enjoy about your job and what is your definition of success?

There are challenges on every construction project and that’s part of the excitement and what keeps my heart racing. I enjoy interacting with people, whether clients or staff, getting to know them more, finding out what keeps them awake at night and what puts a smile on their face.

Connecting with people at a deeper level is always a challenge, but it is a way to evaluate myself whether I have succeeded in really understanding the person I am working with.

My definition of success is having a positive impact. It is when a client says that they feel working with EllisDon is different, and that we bring a partnership approach to a project. I also define success as when I hear staff saying that they feel part of a family and that they feel heard and appreciated, and they in turn give their best in return.

With both clients and staff satisfied, the rest will fall in place, whether measured by growth or financial success.

Interview by Arif Ghaffur, PQS(F) Chair, CIQS www.ciqs.org | Winter 2023 | Construction Economist 23

YQS Corner

Navigating the construction cost landscape: A guide for Young Quantity Surveyors’ streamlined growth Mykola Pulnyev, PQS, MRICS, PMP, P.GSC

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n the dynamic world of construction economics, young quantity surveyors find themselves at the forefront of managing costs, ensuring project efficiency, and delivering value to clients. This article aims to provide valuable insights and practical advice for young quantity surveyors as they navigate the complex terrain of construction cost management.

Embracing Technology: In the digital era, technology has become a game-changer for the construction industry. Young quantity surveyors (YQS) should explore and leverage advanced software, Artificial Intelligence (AI) and tools that streamline processes enhance accuracy and improve collaboration. From Building Information Modeling (BIM) to cost estimation software, embracing technology can significantly boost efficiency and effectiveness in cost management.

Developing Soft Skills: While technical proficiency is crucial, the importance of soft skills should not be underestimated. Effective communication, negotiation, and interpersonal skills are essential for successful collaboration with diverse project stakeholders. YQS should invest in developing these soft skills to navigate the interpersonal aspects of the job and build strong professional relationships.

Sustainability in Construction: As the construction industry increasingly emphasizes sustainable practices, YQS should familiarize themselves with green building principles and sustainable construction methods. Understanding the cost implications of sustainable choices and advocating for environmentally responsible solutions will be key in shaping the future of construction projects.

Continuous Learning and Professional Development: The construction industry is constantly evolving; staying current with latest trends, regulations, and industry best practices is crucial. YQS should actively

seek opportunities for professional development, such as attending CIQS Congress, YQS coffee chats, workshops, and webinars. A commitment to continuous learning will enhance the expertise and provide competitiveness in the field.

Risk Management: Construction projects inherently involve risks, and effective risk management is a critical aspect of quantity surveying. Young professionals should develop a keen understanding of risk assessment, mitigation strategies, and contingency planning. By proactively addressing potential risks, quantity surveyors can contribute to the successful delivery of projects within budgetary constraints.

For YQS, the construction industry presents a challenging yet potentially rewarding career path. By embracing technology, sharpening soft skills, incorporating sustainability practices, committing to continuous learning, and mastering risk management, these professionals can excel in their roles and contribute to the overall success of construction projects. As the industry evolves, the adaptability and innovation of YQS will play a pivotal role in shaping the future of construction economics.

ABOUT THE AUTHOR Mykola’s deep understanding of the construction world comes from working for both public and private clients in property, transportation, food manufacturing, defence, and clean energy sectors. These diverse experiences have resulted in a balance of knowledge and creativity that drives the desire to advocate and promote the Quantity Surveying profession and practice best industry standards.

Mykola’s true desire is to guide clients towards a predictable and successful outcome. In time away from projects, he can often be found sitting on industry panels, speaking at industry events, or working out at the gym, downhill skiing, or paddling on a kayak.

Mykola holds an Advanced diploma in Construction Engineering Technology Management from George Brown College and a bachelor’s degree in applied science in Technology Management from Bemidji State University.

rendering Photo Source: https://www.molicel.com/corporate/government-of-canada-invests-in-e-one-moli-energy-canada/

Project Profile: $1B Maple Ridge Battery Factory

By Shane McKernan, PQS, GSC, B.Tech Project: E-One Moli Lithium-Ion Battery Cell Facility Location: 20000 Stewart Crescent, Maple Ridge, BC Owner/Developer: E-One Moli, Province of BC, Federal Gov’t of Canada Design/Build/Operate: E-One Moli Energy (Canada) Ltd., a subsidiary of E-One Moli Energy Corporation (based in Taiwan)

In collaboration with both provincial and federal authorities, plans are underway to establish a substantial lithium-ion battery cell manufacturing plant in the Metro Vancouver region. This strategic initiative aims to leverage government support for the development of a state-of-the-art facility dedicated to the production of lithium-ion battery cells. On November 14, 2023, Prime Minister Justin Trudeau, accompanied by British Columbia Premier David Eby and Maple Ridge Mayor Dan Ruimy, announced government support for this significant facility.

“British Columbians have long been known for their innovation in the clean technology space. Today, as we secure a major clean battery manufacturing project in Maple Ridge, we build on that expertise to secure hundreds of middle-class jobs while fighting climate change. The world is looking to Canada.

When we support projects like E-One Moli’s new facility in Maple Ridge, we bolster Canada’s role as a global clean tech leader, we create good jobs, and we help keep our air clean.”

Stats: Size 450,000 SF, 7-stories (single building).

11-acre site.

Cost Initial construction cost: $1.05bn.

Schedule Four-year construction period commencing in June of 2024 and completing in 2028.

Notes The facility is set to produce 135 million batteries per year.

350 new jobs are anticipated to be created from this project.

“As our province builds a stronger, cleaner economy, we open the door to immense opportunities in the private sector that value British Columbia as a centre for innovation, investment, and cutting-edge technology. The new E-One Moli advanced manufacturing plant will create hundreds of good, local jobs and continue to establish British Columbia as a leader in building a clean energy future.”

The Hon. David Eby, Premier of British Columbia

E-One Moli, a leading battery company, will invest $1 billion in the new facility, contributing to the creation of up to 350 new jobs while securing over 100 existing positions. The facility, powered by British

The Rt. Hon. Justin Trudeau, Prime Minister of Canada

existing condition Photo Source: Google Maps

www.ciqs.org | Winter 2023 | Construction Economist 25

Columbia's clean energy, is poised to manufacture an impressive 135 million battery cells annually, solidifying its status as Canada's largest factory for highperformance lithium-ion battery cells. This development not only adds strength to the local economy but also enhances British Columbia's pivotal role in Canada's globally acclaimed battery supply chain. The battery cells will cater to various industries such as automotive, aerospace, consumer electronics, power tools, garden trimmers and medical devices. This move will allow the production of domestically manufactured battery products, reducing the reliance on imports from Asia.

The Canadian government plans to invest up to $204.5 million in the battery manufacturing project through the Strategic Innovation Fund's Net Zero Accelerator Initiative. Additionally, the Government of British Columbia will contribute $80 million to the facility's construction. This joint financial support aims to strengthen Canada's role in battery manufacturing.

With the addition of new government funding, construction for this project is slated to commence in June 2024, facilitating the commencement of operations by 2028.

Article Sources: https://www.molicel.com/corporate/government-ofcanada-invests-in-e-one-moli-energy-canada/ https://www.cbc.ca/news/canada/britishcolumbia/maple-ridge-billion-dollar-battery-plant1.7028281

ABOUT THE AUTHOR Shane is the Director of Preconstruction for Keltic Development. With over sixteen years of experience, Shane is a Past President of the CIQS BC Chapter, where he served for ten years, and he is currently an assistant to the Construction Economist editor.

The CIQS HUB: a website designed for the leaders of tomorrow Alexandra Parliament

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he re-designed CIQS HUB website was launched under the CIQS umbrella in late summer 2023 under a new domain: www.ciqs.org/theHUB. The CIQS HUB is a source of information for students interested in learning more about the quantity surveying procession and the Canadian Institute of Quantity Surveyors; an online portal for CIQS ambassadors; and an online platform for the CIQS Young Quantity Surveyor (YQS) program.

The site includes links to the “Construction Economist Journal”, the CIQS podcast “Knowledge Counts”, and the Institute’s online video gallery. It was designed as a platform to help tomorrow’s generation of quantity surveyors grow, learn and network.

26 Construction Economist | Winter 2023 | www.ciqs.org

Education Corner

Role of effective communication in Successful project delivery Ibrahim Oladapo, PQS, PMP

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ffective and efficient communication plays a paramount role in the successful delivery of construction and infrastructure projects in Canada.

Construction projects are complex endeavors involving numerous stakeholders, including owners, contractors, subcontractors, architects, engineers, other consultants, and regulatory bodies. The ability to convey information accurately, transparently, and in a timely manner is essential for coordinating efforts, managing risks, and ultimately achieving project success.

In this article, I will delve into the various types of communication exchanged among stakeholders, identify common causes of poor communication in construction projects, and discuss the ramifications of inadequate communication on project outcomes. I will draw on some Canadian infrastructure projects and legal cases to illustrate the importance of effective communication, and end with some of the roles CIQS members play in mitigating the adverse effects of poor communication in construction projects.

Types of Communication in Construction Projects Effective communication in construction projects involves a multifaceted exchange of information among various stakeholders.

The types of communication sent and received by these parties can be categorized as follows: Written Communication: Written communication includes project documents, such as contracts, drawings, specifications, and reports. It also encompasses emails, memos, and official correspondence.

These documents serve as the foundation for understanding project requirements and responsibilities.

Verbal Communication: Verbal communication occurs during meetings, site visits, and direct conversations. It is an essential form of communication for discussing project progress, addressing issues, and clarifying details.

Electronic Communication: In the digital age, electronic communication via platforms like project management software, messaging apps, and virtual meetings is increasingly prevalent. These tools streamline information sharing and enhance collaboration among geographically dispersed project teams.

Visual Communication: Visual communication involves the use of drawings, diagrams, charts, and models (e.g., Building Information Modeling) to convey complex ideas and concepts. Architects, engineers, and designers often rely on visual aids to illustrate their vision and plans.

Formal Communication: Formal communication includes contractual notices, change orders, and requests for information (RFIs). These documents are critical for documenting project changes and ensuring that contractual obligations are met.

Informal Communication: Informal communication occurs on a day-to-day basis and includes casual conversations and interactions among project participants. While less structured, informal communication can be valuable for building relationships and addressing minor issues before they escalate.

Education Corner

Common Causes of Poor Communication in Construction Projects Despite the importance of communication, poor communication remains a prevalent issue in construction projects. Several factors contribute to this problem: Lack of Clarity in Contracts: Ambiguities or vague language in project contracts can lead to misunderstandings and disputes.

Unclear contract terms may result in conflicting interpretations of obligations and responsibilities.

Inadequate Documentation: Failure to maintain accurate and comprehensive project records can hinder communication. When disputes arise, having a clear paper trail of decisions, changes, and correspondence is crucial for resolving issues.

Misalignment of Expectations: Different stakeholders may have divergent expectations about project outcomes, schedules, or quality standards. When these expectations are not clearly communicated and aligned, conflicts can arise.

Poor Communication Channels: Inefficient communication channels or reliance on outdated tools can lead to delays and misunderstandings. Inadequate technology and reliance on paper-based communication can hinder information flow.

Cultural and Language Barriers: In diverse project teams, cultural and language differences can impede effective communication.

Misinterpretations due to language barriers can lead to errors and disputes.

Hierarchy and Power Dynamics: Unequal power dynamics within project teams can discourage open and transparent communication.

Subcontractors or smaller firms may be hesitant to voice concerns to more dominant parties.

28 Construction Economist | Winter 2023 | www.ciqs.org

Impacts of Poor Communication on Construction Projects The consequences of poor communication in construction projects are far-reaching and can significantly affect project success. According to the Project Management Institute (PMI), poor communication is the primary reason why projects fail one-third of the time. In projects with minimally effective communications, only 37% of the projects were completed on time, only 48% were completed within budget and just 52% met their original goals.

Let's explore some of the key areas where inadequate communication can lead to adverse outcomes: 1. Cost Overruns: Miscommunications and delays can result in increased project costs. For example, changes in the scope of work may not be properly documented and approved, leading to disputes over additional expenses.

2. Schedule Delays: Inefficient communication can cause delays in project timelines. If critical information is not conveyed promptly, it can disrupt construction activities and prolong project completion.

3. Quality Compromises: Misunderstandings or lack of clarity in communication can lead to subpar workmanship or deviations from design specifications. This can jeopardize the quality of the finished product.

4. Safety Risks: Poor communication can compromise safety on construction sites.

Failure to convey important safety instructions or hazards can result in accidents and injuries.

5. Legal Disputes: Disagreements arising from poor communication can escalate into costly legal battles. Parties may resort to arbitration, adjudication, or litigation to resolve disputes, consuming valuable time, and resources.

6. Reputation Damage: Construction companies that are known for ineffective communication may struggle to secure future projects. A tarnished reputation can have long-term financial repercussions.

Education Corner Case Studies To illustrate the impact of communication on construction projects, let's examine several case studies: The Confederation Line LRT Project – Stage 1, Ottawa: The Confederation Line Light Rail Transit (LRT) project in Ottawa faced significant communication challenges during its construction. Poor communication between the consortium responsible for construction and the city's transportation authority led to delays and cost overruns. There were also challenges between the consortium and the companies performing its subcontracts on the project.Changes in project scope were not adequately documented, and disputes over additional costs arose.

The project's timeline was extended, resulting in inconvenience for commuters and increased costs for taxpayers.

The Champlain Bridge Replacement Project, Montreal: The Champlain Bridge Replacement Project in Montreal experienced communication issues related to the delivery of critical materials and components. Delays in the delivery of specialized steel segments from overseas suppliers were not effectively communicated to the construction team. As a result, construction activities were stalled, causing significant schedule delays and cost overruns. The private party also sued the client for additional costs incurred for transportation of heavy load trucks, claiming it was not informed of weight restrictions and restricted access to provincial roads in and around the construction site until after signing the agreement. The ensuing settlement led to additional cost and schedule impact.

Burnaby North Secondary School replacement project, Burnaby: The city school board filed a notice of civil claim in the British Columbia Supreme Court against the lead consultant and structural engineer for extra costs and construction delays on the project. The claim included issues such as failure to coordinate the design of the project, providing incorrect design details, inadequate mitigation of design flaws, and providing slow, incorrect, or incomplete responses to requests for information amongst other claims, all of which led to delays and extra costs.

Valard Construction Ltd. v. Bird Construction Co., 2018 SCC 8: The construction project was on one of Suncor’s worksites near Fort McMurray, Alberta. In this court case, the dispute arose due to the general contractor, Bird Construction's failure to inform Valard Construction about a labor and material payment bond.

Valard, a subcontractor, remained unpaid after the insolvency of Langford, another subcontractor. Unaware of the bond, Valard missed the 120-day claim window. The Supreme Court of Canada ruled that Bird breached its fiduciary duty by not informing Valard of the bond, especially since such bonds were uncommon for the type of project: a private oilsands construction project. This poor communication led to Valard's inability to claim within the prescribed period, impacting the construction project's financial outcome.

While communication was an issue on all the projects highlighted above, it is important to note that other factors contributed to the challenges experienced. www.ciqs.org | Winter 2023 | Construction Economist 29

Education Corner

The Role of CIQS professionals CIQS members can play a pivotal role in mitigating the adverse effects of poor communication in construction projects. Their expertise in cost management, contract administration, and estimation directly contributes to minimizing the adverse effects of poor communication by maintaining transparency, managing expectations, and ensuring that all parties are aligned on project objectives, constraints, and changes. Here's how they can make a difference: Accurate Estimates: Providing accurate cost estimates and projections for construction projects, requiring clear communication to ensure all stakeholders understand the financial aspects of the project.

Bid Preparation: Preparing and evaluating bids for construction projects. Effective communication is key in this role to ensure that bids are accurate and comprehensive.

Budget Management: Helping to manage the project budget, which involves communicating budgetary constraints and changes to the project team.

Change Order Management: Often involved in managing and communicating about change orders, ensuring that any changes are accurately reflected in the project costs and all stakeholders are informed.

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Effective and efficient communication is the cornerstone of successful construction and infrastructure projects in Canada Collaboration with Project Team: Working closely with engineers, architects, and contractors, requiring them to communicate effectively to ensure that cost estimates align with project designs and execution plans.

Cost Management: Providing detailed cost management and estimates throughout the project lifecycle, ensuring all parties are aware of financial implications and changes.

Contract Administration: Playing a key role in administering construction contracts, which includes communicating effectively among parties to avoid misunderstandings.

Dispute Resolution: Often acting as mediators in disputes, where their expertise in interpreting contract terms and project costs can help resolve conflicts arising from miscommunications or misunderstandings.

Risk Management: Identifying financial risks early in the project, communicating these to stakeholders, and helping to mitigate them before they become critical.

Value Engineering: Proposing alternatives that optimize cost, time, and quality, necessitating clear communication to ensure all parties understand the trade-offs involved.

Effective and efficient communication is the cornerstone of successful construction and infrastructure projects in Canada.

Clear, timely, and transparent communication among stakeholders is essential for preventing cost overruns, schedule delays, quality compromises, safety hazards, and legal disputes.

By addressing common causes of poor communication and emphasizing the importance of communication excellence, the Canadian construction industry can reduce the risks and challenges associated with inadequate communication. Having specialized knowledge and skills, CIQS professionals play a critical role in ensuring that projects are executed efficiently, within budget, and to the satisfaction of all stakeholders. It is only through a collective commitment to effective communication that Canada's construction and infrastructure projects can continue to thrive and deliver lasting value to society.

ABOUT THE AUTHOR Ibrahim is the education director for CIQS and has a career that spans three continents (Africa, Europe and North America) and over 18 years in consulting, contracting, academia, and public service. He possess a master’s degree in project and enterprise management (University College London) and a bachelor’s degree in quantity surveying.

He is a cost manager with the Government of Alberta and provides expertise for the planning and delivery of the province’s vertical infrastructure projects. He resides in Edmonton, Alberta.

Annual Holiday Dinner The National Club Toronto, ON

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n November 30, 2023, the CIQS Annual Holiday Dinner was held at The National Club Toronto with Angela Clayton, president, project delivery at Infrastructure Ontario as the special guest speaker.

Angela is responsible for overseeing the strategy, planning and implementation of infrastructure projects across Ontario. A passionate advocate for women in the infrastructure sector, Angela is actively involved in Women’s Infrastructure Network and is currently a director on the boards of the YW Kitchener-Waterloo, and Ronald McDonald House Charities Toronto.

CIQS CEO, Sheila Lennon, gave opening remarks to the well-attended event, and invited Angela to share her journey. Angela delivered an insightful presentation, mentioning the importance of a strong network, continuing professional development, and a solid work ethic. Angela also stressed that importance of proactively finding talent, particularly in relation to versity, investing in employees, and her belief that hard workers stand out.

Following Angela’s presentation, Sheila invited CIQS Chair, Arif Ghaffur to the stage to offer his observations.

He stated that “...it starts with embedded humility, add a dash of difficulty, layer that with opportunity, come across a bit of luck, slap on some vision, here comes leadership...throw more humility at it - and there we have it.”

Angela’s story presents tremendous perspective and fuels our collective desire that Canadians of every ilk can make it.

In closing the event, Sheila Lennon thanked the sponsors - Roni Group, Lakeland Consulting Inc, A.W. Hooker Associates, and Hanscomb - for their support.

She also reminded attendees that CIQS Congress 2024 will be held in Toronto from June 20-22, and that CIQS will celebrate its 65th Anniversary at that time. Sheila noted that there has been considerable interest in the submission of technical papers, and encouraged members to take advantage of the Early Bird registration for this eagerly awaited event.

nuances of international arbitrations: relevance to canada Mahmoud Abuwasel

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international arbitration stands as a pivotal recourse for resolving construction disputes that cross borders. This process, underpinned by both international law and the contractual arrangements of the disputing parties, offers an impartial and enforceable method for addressing the often complex disputes that arise within the construction industry. Notably, the Canadian Bar Association’s 2021 report highlights cities like London, Paris, Dubai and Singapore as favoured arbitration locales due to their established legal frameworks and specialized expertise, chosen for 46%, 35%, 26%, and 22% of

is also underscored by global construction disputes reports.

The principles distilled from international dispute resolution practices provide for robust foundations for creating identifiable data that can significantly support claims in the arbitration process.

For Canadian entities, international arbitration is particularly pertinent given the nation’s extensive engagement with international treaties. As reported by the 2022 ICSID Annual Report, key investment dispute sectors include electric power, oil, gas, mining, and construction. Canada’s active participation in over 4,000 treaties reflects the country’s commitment to international arbitration as a means to manage and resolve disputes stemming from state actions, contractual nuances, and payment complications.

One concept unique to arbitration, and of great relevance to Canada, is the ‘iceberg approach’, where visible issues on the cases respectively.

International arbitration stands as a pivotal recourse for resolving construction disputes that cross borders A critical element of international arbitration in construction disputes is the intricate delay analysis. Judicial decisions, such as Resurfice Corp. v. Hanke (Supreme Court of Canada, 2007) and Schindler v. Walsh (Ontario Superior Court, 2021), demonstrate the meticulous examination required to assess causation and apportion liability. These cases emphasize the vital nature of precise claim formulation and substantiation when it comes to sequential and concurrent delays.

The significance of rigorous documentation and strategic presentation of evidence

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surface are only a fraction of more complex underlying disputes. In arbitration, it is crucial to align the overt data with the more considerable bulk of issues, such as project interference and administrative decisions, to effectively support claims.

The intricacies of local and international regulations can often intersect in Canadian arbitration cases. For instance, the application of reprisal clauses in municipal procurement policies in Canada can clash with international treaty obligations, such as those under the Comprehensive Economic and Trade Agreement (CETA). Reprisal clauses in municipal procurement policies can prevent companies that have previously litigated against the municipality from bidding on future contracts. The debate over these clauses’ compatibility with international commitments underscores the delicate

interplay between domestic legal frameworks and international arbitration norms where CETA could apply to domestic entities as well. For such applications, a Canadian entity subject to reprisal clauses may challenge such clauses via arbitration under international treaties.

Contemporary topics like supply chain disruptions, pricing issues, and the aftereffects of the COVID-19 pandemic have introduces new complexities into the arbitration arena. These have led to a reevaluation of established claims such as constructive acceleration, which, according to resources like GAR Know How Construction Arbitration - Canada, remains relatively underexplored in Canadian legal precedent.

Lessons from international arbitration bear considerable significance for domestic Canadian disputes. For example, Canadian cases involving procurement policies may benefit from international treaty expertise, potentially offering new methods for local dispute resolution.

Lessons from international arbitration bear considerable significance for domestic Canadian disputes. For example, Canadian cases involving procurement policies may benefit from international treaty expertise, potentially offering new methods for local dispute resolution.

In conclusion, international arbitration is more than a mechanism for resolving cross-border disputes; it offers valuable insights for Canadian companies in domestic settings as well. By adopting principles honed in the international arena, Canadian firms can refine their dispute resolution tactics, strategically manage construction project issues, and bolster the robustness of their claims. The expertise gained through international arbitration empowers these companies to navigate domestic disputes with greater acumen and to improve project management practices, leveraging global standards to achieve local success. This integration of international arbitration practices ensures that Canadian stakeholders are wellpositioned to steer through the complexities of both international and domestic construction disputes with confidence and strategic advantage.

ABOUT THE AUTHOR Mahmoud is the managing partner at Wasel & Wasel. He is a Harvard graduate solicitor of the Supreme Court of Victoria, a Qualified Arbitrator by the ADR Institute of Canada, and registered with the Dubai International Financial Centre Courts and the Abu Dhabi Global Market.

ciqs affinity program - www.sonnet.ca/CIQS - Programme d'affinité de l'ICEC

www.ciqs.org | Winter 2023 | Construction Economist 33

embracing the ai revolution in construction: turning disruption into opportunity Joshua Akom, PQS

It seems that profit margins must be disrupted to revolutionize an industry.

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ny time a low-margin industry is disrupted, it will evidently attract big players with even larger balance sheets, further driving up competition and unfortunately killing legacy players that fail to adapt.

Suddenly, long forgotten projects are revived because of the high margins. The latest example of this is in the automobile industry.

Historically, the industry was seen as a low margin industry that deserved little or no attention from big players. This, however, changed in 2019 when Tesla became the largest automobile company by market share. Apple Inc. was recently reported to be working on producing its own car by 2024.

The reason is simple - Apple has a fat balance sheet, and the automobile industry is no longer seen as a low-margin industry, due to Tesla’s success.

Like the automobile industry, the architecture, engineering and construction (AEC) industry is also a relatively low-margin industry layered with huge labour shortages, and [arguably] productivity issues, making it all the more ripe for disruption. The

34 Construction Economist | Winter 2023 | www.ciqs.org

industry appears to be changing soon with many technologybacked processes and tools that promise to revolutionize construction coming to the fore.

Digital construction is not just a buzz word but seems to be within reach given the recent advancements in artificial intelligence (AI), and generative artificial intelligence (Gen AI) in particular. For many, it is the panacea for all the problems that have historically plagued construction, ranging from poor productivity to horrendous project performance and asset management.

A McKinsey Construction Industry report in 2020 predicted a significant adoption of technology by the construction industry in the coming decades. The COVID-19 pandemic and Gen AI have accelerated this implementation with the widespread embrace of

drones for monitoring projects, mobile technology, big data analytics, etc.

Automation in construction may curb labour shortage issues and improve efficiencies, thereby driving up profit margins. With automation, the characteristically low-margin industry will take on a new face - it suddenly becomes attractive because of the innovation and huge profit margins. Incentivized by higher profit margins, Big Tech, with its fat balance sheets and technical know-how, appears to be wellpositioned to profit from this forthcoming construction digitization.

This is where the problem potentially lies. The attraction of new entrants to the market will certainly shake up the industry.

The construction industry is made up of about 90% SMEs (Small and Midsize Enterprises) with

arguably small balance sheets without the technological capabilities to build innovations needed to compete with Big Tech. Unless they embrace innovation and technology, traditional industry players face the risk of running out of business, and those that survive may have to reinvent themselves as raw material suppliers to Big Tech.

In the last edition of the Construction Economist, there was an article on the benefits of AI and the drawbacks that may hamper our industry from realizing the full potentials of AI (see Isaac and Aurelis, 2023).

This article builds somewhat on the foundation of the previous article. Specifically, it looks at how our industry, particularly SMEs and construction professionals, can be positioned to benefit from this wave of disruption. It is important for professionals and organizations to have a coherent strategy to leverage AI which, in this situation, begins with a technological maturity model.

McKinsey and Company (2023), in their recent article on the future of generative AI, postulated that Gen AI is likely to have the biggest impact on knowledge work - particularly activities involving decision. Our profession is at the heart of decision making in the construction industry.

Most decisions in construction are driven by costs which, for the most part, rely on historical information, and patterns within the industry. I recognize that is simplistic, but you get the point.

Technological Maturity Model or Level A technological maturity level is the position of an organization’s current technology landscape relative to a future state.

Organizations can understand quantitatively where they are and, based on their vision, where they want to be. There are generally about five levels of maturity: initial, managed, defined, quantitatively managed, and optimized.

I won’t get into the details on the levels here as our Applied Research Group is currently working on a report that will be presented later.

The technological maturity level serves as the compass for organizations navigating the path from their current technology landscape to a future state. It profoundly shapes an organization’s ability to innovate, compete, and weather industry disruptions. Construction companies, including consulting firms, must proactively steer disruption toward a tailwind rather than a headwind.

Our profession is at the heart of decision-making in the construction industry Some of the steps construction companies can take are as follows: 1/ Assessing Technology Maturity Before diving into the adoption of AI and other advanced technologies, it’s essential for construction companies to assess their current technological maturity level. This may simply take the form of evaluating the existing IT infrastructure, digital tools, data management, and the level of tech-savviness among the workforce. Understanding where the organization stands in terms of technology is the first step.

Organizations with lower technological maturity may encounter more barriers when trying to integrate AI solutions. Legacy systems, outdated software, and a lack of digital expertise among employees can hinder the adoption of new technologies. This can be particularly challenging for SMEs in the AE sector (which is about 90% of all construction companies), as they may have limited resources for IT infrastructure and employee training. The assessment will reveal the technological maturity level and thus enable the organization to adequately plan.

www.ciqs.org | Winter 2023 | Construction Economist 35

2/ Incremental vs. Transformational Adoption The technological maturity level of an organization will dictate the organization’s adoption strategy, which can be incremental or transformative. Mature organizations may be able to build on their existing tech infrastructure and gradually introduce AI tools. In contracts, less technologically mature organizations might need to make more substantial or transformative changes to their systems and workflows. Anecdotally, construction companies tend to be less technologically mature and will thus require a more transformative adoption strategy.

3/ Data Management and Quality AI heavily relies on data. Mature construction companies tend to have more structured and high-quality data, which is crucial for the success of AI algorithms. Less mature construction companies may need to invest in data management and quality improvement before they can fully leverage AI’s potential. PQS and CEC professionals play a critical role in a company’s construction data management.

This could take the form of organization of data and vetting the quality of data. The construction industry generates large amounts of data, generated through various processes such as design, planning and execution; however, the construction industry is also notorious for poor data management. Left unchanged, poor data management will hinder the adoption of digital technologies. With recent advances in OpenAI’s large language models (LLMs) developer, SMEs and professionals will be able to have the capacity to develop their own chat bots or project agencies that rely on the internal data corpus with minimal effort and costs.

4/ Talent and Training Organizations at different maturity levels may have varying levels of technological expertise among their employees.

Mature organizations may have in-house talent capable of developing and implementing AI solutions. Less mature organizations may need to invest in training or to hire external experts.

The Canadian Institute of Quantity Surveyors (CIQS) has an incredible opportunity to partner with industry partners in general and SMEs specifically to provide regular training sessions to close the gaps that exist among professional members. This may start with the basics of GenAI and then subsequently in advanced topics.

WHAT’S NEXT AEC organizations, particularly SMEs, should reconsider their technologies maturity as a crucial starting point to make the most of recent AI advancements and other technologies.

To do so, construction companies should: Conduct a thorough assessment of their current tech capabilities; Develop a clear technology adoption strategy that aligns with their maturity level; Invest in training and skill development for their workforce; Consider partnerships with techsavvy firms or consultants to bridge the technological gap; Prioritize data quality and management as a foundation for AI implementation.

36 Construction Economist | Winter 2023 | www.ciqs.org

In conclusion, the indications are clear. The disruption has already begun, but the construction industry, particularly SMEs, run the risk of falling behind. Big Tech players such as Tesla getting into tunnel constructions and Alphabet (the parent company of Google) planning smart streets and neighbourhoods should serve as a wakeup call. New business models through partnership and join ventures can reposition existing construction companies for the forthcoming disruption. This will increase their capacity to afford new technologies, and build their capacity to withstand the upcoming shakeup.

The technological maturity of an organization is a pivotal factor that influences its readiness to embrace AI and other digital innovations in the AEC industry.

Understanding this maturity level and taking appropriate steps to bridge any gaps is essential for companies to stay competitive and thrive in an increasingly technology-driven sector. Professionals and the CIQS have an incredible opportunity to be at the forefront of this digital revolution in our industry.

About the author Joshua Akom is a technical manager and team lead of the Applied Research Group at Hanscomb Limited. He spearheads Industry 4.0 and construction innovation, focusing on decarbonization and Construction Escalation Watch. A registered Professional Engineer in Manitoba, Joshua’s leadership in the intersection of technology and construction is fortified by an MBA from the University of Manitoba, with a specialization in Technology, Innovation and Consulting.

Canadian construction: indicators of growth, composition, and changes Ajibola Soboyejo and Udayan Chatterjee

Recent data on the Canadian Construction Industry performance indicators provide interesting insights into various metrices including GDP of the industry, construction price trends, changes in investments, housing starts, and completions.

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Overall, Canada’s construction industry demonstrates stability in non-residential construction, despite a drastic decrease in residential construction investments compared to the previous year. These statistics underline the enduring impact of the challenging economic factors on the industry.

Changes in Housing Starts and Completions

onstruction Industry GDP and Investments The construction industry is displaying signs of slowing down amid the backdrop of quantitative tightening and high interest rates. Third-quarter statistics for 2023 reveal a year-over-year decrease in both the industry GDP and investments in residential construction.

August 2023 saw a striking 23% decline in year-overyear investments in residential construction, with an overall increase in the cost of residential construction.

According to Stats Canada, British Columbia faced its 11th consecutive decline in investments after reaching its peak in December 2022.

Conversely, non-residential construction investments exhibited a year-over-year modest increase of 5.8%.

This upward trend aligns with the 5.6% increase in the composite construction price index for non-residential construction, indicating a degree of stability in this sector. Stats Canada notes that, while there were slight gains in industrial (1.1%) and institutional (0.7%) investments, a 0.5% decline in the commercial sector left the non-residential sector almost unchanged for the month.

Growth in Construction Industry Gross Domestic Product (GDP)

Housing Starts and Completions The industry in Q3 of 2023 saw a 6% increase in housing starts and a 4% rise in completions compared to the preceding quarter. According to the Canada Mortgage and Housing Corporation (CMHC), housing starts exceeded expectation for September 2023, noting an 8% surge from the previous month, largely driven by heightened urban and multi-unit urban starts.

Notably, this data reveals marked increases in regions such as Quebec and the Prairies, while regions like British Columbia, Ontario and the Atlantic provinces experienced decreases, resulting in an overall slight uptick from the previous quarter.

Despite a robust 40% increase in housing completions from the previous year, however, housing starts exhibited a 7% decline over the same period. This highlights a clear correlation between residential construction investments and housing starts in Canada, with both showing a year-over-year decline, but a month-over-month increase.

The persistent year-over-year decline in housing starts www.ciqs.org | Winter 2023 | Construction Economist 37

indicates a lack of effective response to the rising demand for housing as the Canadian population continues to grow and signals an extended challenge in balancing construction with market needs.

Housing Starts Composition (Residential)

Employment in the Canadian construction industry As of October 2023, the employment composition within the construction industry continued to display a significant gender gap. The workforce remains predominantly male, accounting for 87% of the industry’s employment, while females represent only 13%.

In comparison, the distribution of the total working population in Canada shows a more even split between the genders highlighting the ongoing imbalance in gender representation specifically within the construction sector.

Building Construction Price Index In Q3 of 2023, Statistics Canada unveiled year-overyear increases of 5.7% and 5.6% in construction prices for residential and non-residential projects across an 11-cities index. Additionally, there was an uptick of 1.0% in building construction costs for both residential and non-residential projects from that in the previous quarter.

Composition and changes in investments in construction

Construction Price Index Across Metropolises

Composition of employment in all industries v. construction

Broadly, the residential construction index showed an overall increase from the previous year, with a slight 0.4% decline in Edmonton. Toronto took the lead in this index, boasting a substantial score of 198.4, marking a noteworthy 10% year-over-year surge from Q3 2022. Following closely, Calgary and Ottawa secured indices scores of 179.2 and 175, respectively, showcasing relative increases of 3% and 2%, respectively, from the previous year. Other notable increases include Halifax and Vancouver with yearover-year increases of 8% and 7% respectively.

These trends indicate a general escalation in construction prices across both residential and nonresidential sectors, with specific cities experiencing substantial increases.

38 Construction Economist | Winter 2023 | www.ciqs.org

Ajibola Soboyejo, MSc, MRICS, PQS Ajibola is a senior cost manager at Linesight and a quantity surveyor with expertise in cost management, design economics, BIM estimating, cost control, and project management. Holding both a masters and a bachelors degree in quantity surveying, she has a rich professional background, having worked on commercial real estate projects in Nigeria and Canada, as well as data centre projects in United States.

Udayan Chatterjee, B.Tech, PMP, MRICS, PMI-SP Udayan is an associate director, contracts and commercial at Lakeland Consulting Inc. He is a commercial and project management professional with expertise in quantum assessment, schedule forensics, contract and claims management. He holds a Bachelor's Degree in Electrical Engineering, Diploma in Construction Engineering and has worked on various large scale transportation, mining and commercial construction projects across North America, Europe and India.

Congratulations Corner

Congratulations to the following ‘Designation Holders’ who have qualified as a PQS or CEC (Including reinstatements): CIQS – British Columbia Ahmed Sabry Oda, CEC Ashkan Morawej, CEC Chi Shun Wan, PQS Chun Yip Law, CEC Dave Elliott, CEC Emily Aston Payne, CEC Salah Sadaka, CEC Steven Moore, CEC Tom Woodley, CEC Xinyue Duan, CEC Yanshu Wang, CEC CIQS – Members at Large Aingaran Vinayagam, PQS Anand Hitesh Ranpara, CEC Damion Andra Morgan, CEC Jailos Dube, PQS Karthik Nagendran, PQS Kaung Myat Kyaw, CEC Madhura Prasad Wickramasinghe Adikaramlage, CEC Mary Jane Rivera Abergas, CEC Mohamed Sharifdeen Mohamed Rushad, CEC Natique Gulamsarwar, CEC Rotimi Ebenezer Taiwo, CEC Sirajudeen Nuthais Ahamed, PQS Yasir Rashid, CEC CIQS – Ontario Abdul Manan, PQS Abdul Wahab Khan, CEC Abisola Somorin, CEC Alireza Akbarnejad, CEC Andrew Erlandson, CEC Arshdeep Kaur, CEC Damilola Ilerioluwa Akintunde, CEC Daniel Joseph Medeiros, CEC Daniel Jovanoski, CEC Denishkumar Zalavadiya, CEC Effie Shi, CEC

Geoffrey William John Unwin, CEC Gordon Robbins, CEC Harmen Bert Marskamp, CEC Ho Kiu Kenneth Yau, PQS Ho Yeung Cheung, PQS Ian Joseph Brako, CEC Jacob James Strasser, PQS John David Redondo Estacio, CEC Jose Alan Flores Gumalas, PQS Kevin Pui Wai Leung, CEC Kimberlyn Mendoza, CEC Krishnaphirathap Sivamoorthi, CEC Lai Ying Chan, CEC Luningning Llorin, CEC Mahathelge Jayampath Suravinda Peiris, CEC Marc Oosthuizen, PQS Maryam Saadati Nezhad, CEC Mayur Sudhirbhai Kapadia, CEC Mfonobong Duncan, PQS Mohammad Amiriyarahmadi, CEC Mohammadezra Shafieizad, CEC Narine Arzoumanian, CEC Nianyou Wu, PQS Nimesh Narayanan, PQS Noor Mohd Al-Samarai, CEC Olajide Oluseye Oretan, CEC Peyman Yousefi, CEC Phuoc Bich Phuong Dang, PQS Piotr Walaszek, CEC Prangige Lakshitha Nandun Peiris, CEC Rinushan Sureshkumar, PQS Rositta Manjila Thomas, CEC Ruel Alega, CEC Ryan E. Paterson, CEC Ryan T. Jones, PQS Saeed Arvanaghi, CEC Senthuuran Senthilnathan, CEC Somanath Jeganathan, CEC Timothy Ifedapo Oladosu, CEC Thomas R.A Barrington, PQS Xuan (Susan) Zhu, PQS Yee Ting Lee, CEC

CIQS – Prairies and NWT Adewale Jonathan Adeloye, PQS Ajay Mulvanshi, CEC Babubhai Nanjibhai Bhalia, CEC Brayden Ronald Philip Sanclemente, CEC Charizze Faye Tolentino Mendoza, CEC Christopher P. Lacasse, CEC Dhammika Wijerathna Brahkmana Arachchilage, CEC Evan Faris, PQS Hoi Ying Chan, CEC Ishara Sanjeewa Kariyawasam, CEC Jessey Jean-Guy Essiambre, CEC Joanne Daley, PQS Mohamed Gamal Heiba Ebied Mohamed, CEC Noel Kenneth Dela Serna Lago, CEC Olga Aguilar, CEC Olufemi Olakunle Fajemila, PQS Robert Green, CEC Semiu Adetunji Oyetunji, CEC Shaun Fehr, CEC Sohail Aboelenian, CEC Tosin Samuel Oladeinde, CEC William Zaldivar, CEC Zixin Jiao, CEC CIQS – Québec Francis Labrecque, ECC/CEC Israel Baron Laguardia, ECC/CEC John Wang, ÉCA/PQS Liliane Nawfal, ÉCA/PQS Meena Hamati, ÉCA/PQS

www.ciqs.org | Winter 2023 | Construction Economist 39

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