22 minute read
2012 AGM presentations
Construction projects’ risks –Achieving successful fiscal results in a stressed labour market
By Natalie Dione Alexander, PQS
The following is an excerpt from a presentation given at the 2012 CIQS AGM.
Negative impacts of a stressed labour market
• Fast pace economic recovery can erode the pool of skilled workers • If the demographic trend is not increasing at the rate of the continuing demand • Increase in project delays due to shortage of skills to complete the works • A country failing to meet the global competitiveness of the market. • Failing to meet the needs of investors • The rate of growth for labour and capital is the most important determinant of economic expansion.
What Is a Quantity Surveyor?
• A Quantity Surveyor is a professional person working within the construction industry. The role of the QS is to manage and control costs within construction projects and may involve the use of a range of management procedures and technical tools to achieve this goal. (Source: QS of BC
Website) • A Quantity Surveyor is the person responsible for figuring out what a building is going to cost and in some cases making sure that construction costs and production are managed as efficiently as possible. A Quantity
Surveyor identifies and collate the costs involved in order to develop an overall budget for any project. They can then undertake cost planning which aims to help members of the design team arrive at practical solutions to stay within the project’s budget. (Source: New Zealand Institute of QS Website)
Taking a look at the areas Quantity Surveyors are involved in within the Construction Industry:
Type of projects: • Commercial • Private • Government • Institutional Services: • Estimating and Cost Planning • Contract Procurement • Project Monitoring • Contract Administration • Project Coordination and • Value Analysis/Value Management • Contract Management
Understanding where the market is heading
In March 2012, the Canadian Construction Association reported that Canada is projected to become the fifth largest construction market in the world by 2020.
By 2020, according to a recent PricewaterhouseCoopers report, Canada’s boom in infrastructure should make this country the fifth largest construction market in the world, up two spots from its current seventh place. Construction activity in Ontario will help drive that improvement. For example, the report cites construction related to the 2015 Pan Am games in southern Ontario, as well as major transit projects in Toronto and Ottawa.
Construction outlook 2011 – 2019
Newfoundland is driven by current and proposed major projects. The construction labour markets in Newfoundland and Labrador will encounter volatile cycles across the outlook scenario between 2011 and 2019.
Looking forward from 2011, the construction scenario consists of a dramatic ramping up of non- residential trades and occupations for major industrial and utility/resource projects.
Managing these labour markets will be complicated by limited population and labour force growth. In this environment, labour markets reach extreme high and low conditions. (Source: Construction Sector Council January 2011)
Ontario: 120,000 new workers by 2020
In total, the Construction Sector Council reports that the province will need a total of 120,000 new construction workers between now and 2020. This figure includes 43,000 new workers to meet growing demand and 77,000 more to replace existing workers who are expected to retire during that time.
Ontario’s northern region is expected to be a key driver of activity, with large mining and infrastructure projects in the pipeline, as well as mining construction projects scheduled underway in the Sudbury area and north eastern part of the province.
Greater Toronto Area (GTA) will also be a driver of construction growth, as activity ramps up on labour-intensive construction projects such as the Pan Am games and the Eglinton transit line. (Source: The Construction Sector Council February 2012)
The bottom line
It is worth looking at how Canada will strategically position itself to handle such a growth.
How will construction grow in Canada over the next decade?
Construction Employment by Trade: Construction Estimator/Quantity Surveyors
Data Type 2006 2011 2012 2013 2020 Employment (Total)
9,470 10,643 10,795 10,857 11,655
(Source: Construction Forecasts website of the Construction Sector Council (CSC) (Feb. 2012)
Construction growth in Canada over the next decade (%)
2006 - 2011 > 11.02% 2011 - 2012 > 1.41% 2012 - 2013 > 0.57% 2013 – 2020 > 6.85% ____________________ 2012 - 2020 > 7.38% 2011 - 2020 > 8.68%
Is Canada’s construction industry really experiencing stress on its labour market? The BIG Question Answer ... YES
In February 2012, The Canadian Chamber of Commerce has predicted that over the next decade, we would see shortfalls of 163,000 in construction ALONE.
Short-term
The big challenge is that in three to five years, Canada’s economy will be at the peak of its global economic competitiveness, (much of which will be as a result of construction activities) that it will not have the ability to keep up with the global knowledge-base economy.
Long-term
2015, it is estimated that 35% of Canada’s population will be aged 55 years or older. In the construction sector alone, 210,000 of the current 1.2 million workers are expected to retire over the next eight years.
Making plans according to that market growth Overview of suggestions
• Opening up to cross-multi-disciplines • Postpone retirement • Governmental 2nd career programs • Immigration • Women in construction • Young adults • Break the stigma attached to construction • Manner of job advertising long-term
Short-term
• Opening up to cross-multi-disciplines 1. 1 PQS > 1 Cost Engineer + 1 Contract Engineer 2. 1 PQS > 1 Project Management + Construction Management 3. 1 Architect > Architectural Administration + Life Cycle Costing 4. CIQS continuing to build reciprocity agreements such as the pathways that have been built with RICS
Short-term and long-term
• Postpone retirement 1. Entice the more senior workers to remain employed longer (compensation packages, increase vacation, investment opportunities) 2. Create environments that keep senior workers interested and mentally stimulating 3. Allow veterans to feel highly valued and needed within the organization 4. Promote/establish employee loyalty (creating environments that will retain employees) • Governmental 2nd career programs 1. Funding programs that allow people to go back to school to start a new career; freeing up industries that are experiencing a glut and massaging the shortage industries 2. Not just in Ontario but nationally • Immigration 1. Breakdown the barriers to allow international competitiveness 2. Create fast tracking programs that allow for satisfaction of ‘Canadian work experience’ • Breaking the ‘traditional’ barriers 1. Building environments that provide opportunities and encourage women to become a part of the industry 2. Although the number of women employed in construction has increased from the ‘50s, these numbers are still too low 3. In 2007, women constituted only 12.4% of the entire Canadian construction workforce. Yes, I wear rhinestones and pink flowers on my hard-hat! • Young adults 1. Create environments that are fresh and forward thinking that will entice young adults 2. Do not shy away from social media, as it is the future generation • Manner of job advertising 1. More international – especially provinces that experience higher skill shortages 2. Comparing Social Media to Websites 3. Marketing the provinces – Make people want to live there • Break the stigma attached to construction! 1. Start promoting career options within the construction industry at elementary school levels 2. Encourage trade learning/developing skills from elementary school levels
Challenges to Consider
• Opening up to cross-multi-disciplines 1. Creating a strain on Quantity Surveyors of undertaking too many roles 2. Do not create ‘jack of all trades, master at none.’ Not allowing workers to master a set skill • Postpone retirement 1. There must be a balance. 2. Not pushing the age limit unnecessarily 3. Not creating road blocks for the younger generation
Challenges to Consider
• Governmental 2nd career programs | immigration 1. Employers must allow time for more on the job training 2. Government and employers may have to incur some cost for programs that aid Canadian experience • Women in construction 1. Developing gender sensitive training, modules and material 2. Creating guidelines and policies that have low tolerance levels of sexism, gender segregation 3. Women returning to work? Government and employer child care
This article is an extract from a presentation by Natalie Dione Alexander at July 5-6, 2012 CIQS AGM at St. John’s, Newfoundland. For a full version of this Article, please email Natalie at nattyalexx@gmail.com.
Many of the measures introduced in Budget 2012 are aimed squarely at improving the overall Canadian macroeconomic climate. As expected, the federal government introduced a series of reforms in Budget 2012 designed to put the Old Age Security (OAS) system on a more sustainable footing. Effective in 2023, the age for eligibility for OAS and the Guaranteed Income Supplement (GIS) will be raised to 67 from the current 65. The federal government also introduced the much anticipated cuts to the federal public service, with the departments of National Defence, Public Safety and Health leading the pack in terms of net reductions to their overall budgets. In all, once the cuts are fully implemented, federal spending will be reduced by more than $9.6 billion annually and will account for job losses. The federal government will also balance its budget by fiscal 2015-16, though with revenues increasing above forecast levels, the deficit may well be eliminated as early as 2014-15.Budget 2012 introduces a number of substantive reforms to both programs and the regulations intended to improve the macro business climate of the country. These include: • Changes to research and development programs • Changes to the way environmental assessments are carried out • Improvement to the immigration system to make it more responsive to the needs of Canadian businesses Of the greatest interest to the construction sector are the following measures: • Support for infrastructure • Labour market reform • Environmental assessment • Research & development and innovation
Support for infrastructure
CCA and its partner associations have been at the forefront of lobbying the federal government to play a strong role in the modernization of Canada’s aging infrastructure. The federal government plays an important role in the provision of public infrastructure in Canada. It is the custodian of an infrastructure portfolio with strategic national importance, including a wide range of transportationrelated assets such as airports and bridges. The Government also provides funding to support provincial, territorial and municipal infrastructure. The Government is taking concrete steps to deliver on its commitment to work with provinces, territories, the Federation of Canadian Municipalities and other stakeholders on the development of a long-term plan for public infrastructure that extends beyond the expiry of the Building Canada plan in 2014. A new plan will be designed to leverage funding from all governments and the private sector and ensure affordability and sustainability over the long term. While Budget 2012 did not contain any dramatic new spending initiatives to support infrastructure modernization, the government did reaffirm its desire to replace the Building Canada Plan, when it expires, with a successor program. This new program will include: • $150 million over two years for a new
Community Infrastructure Improvement
Fund to support repairs and improvements to existing community facilities • $275 million over three years for school construction on Aboriginal reserves • $330.8 million over two years to build and renovate water infrastructure on
Aboriginal reserves and to support the development of a long-term strategy to improve water quality in First Nation communities
2012 budget
Program Contents: • The federal government commits to the reform of Canada’s immigration system so as to ensure that it remains responsive to the needs of the Canadian
Economy • The Government has placed top priority on attracting immigrants who have the skills and experience our economy needs • Eliminate the backlog of Federal Skilled
Workers by refunding applicant fees
and encouraging them to reapply under the new system • Realign the Temporary Foreign Worker
Program to better meet labour market demands • Support further improvement to foreign credential recognition and identify the next set of target occupations beyond 2012 • Move to an increasingly fast and flexible immigration system where priority focus is on meeting Canada’s labour market needs The federal government will work with the provinces, territories and employers to develop a pool of skilled workers who are ready to begin employment in Canada (i.e. credentials have been verified and all statutory requirements complied with, such as medicals, security and criminality checks). The Federal Skilled Worker point system will also be reformed to reflect the importance of younger immigrants with Canadian work experience and better language skills.
Other proposed changes include: • Improvement to the Canadian
Experience Class and the creation of a new stream to facilitate the entry of skilled tradespersons • Changes to the Provincial Nominee
Program so as to better focus the program on economic immigration streams in order to respond quicker to regional labour market demand • Improvements to the Temporary
Foreign Worker Program to better meet the needs of employers by reducing the paper burden and shortening processing times In addition to the proposed changes begin made to immigration, the federal government is also setting aside $21.3 million over two years to help unemployed Canadians get back to work more quickly by enhancing the content and timeliness of labour market information that is provided to them.
By Adriana Mema, PQS
Environmental assessment
Another area of great importance to the construction sector is that of
environmental assessments.
The federal government estimates that there are more than 500 projects worth approximately $500 billion identified for development in Canada. In order for these projects to proceed, investors will require certainty that once the decision to proceed is made, projects will not become the unnecessarily delayed by the environmental assessment process. To provide greater certainly, the federal government is committing to reform the Canadian Environmental Assessment Act: • “In the federal government alone, accountability for assessment rests with dozens of departments and agencies, each with its own mandate, processes, information needs and timelines” • “A further complication is overlapping federal and provincial regulatory requirements and processes that require a high degree of coordination” • “A modern regulatory system should support progress on economically viable major economic projects and sustain
Canada’s reputation as an attractive place to invest, while contributing to
better environmental outcomes” In order to improve the regulatory process, the Government will: • Commit to the introduction of legislation to modernize the federal regulatory system that will achieve the goal of
“one project, one review”, establish clear timeliness, reduce the regulatory burden, and focus resources on large projects where the potential environmental impacts are the greatest • Streamline the process for major economic projects, while committing $13.6 million over the next two years to support consultation with Aboriginal peoples • Support the Major Projects
Management Office initiative, which has succeeded in shortening environmental reviews
Research & development and innovation
In response to the Jenkin’s Report, the federal government in Budget 2012 is introducing a series of changes to the way it supports Canadian R&D initiatives. These include: • Doubling the budget (additional $110 million) of the current Industrial
Research Assistance Program for small and medium-sized business research • Promoting collaboration and funding internships connecting private sector innovators to procurement opportunities with the federal government • Refocusing the National Research
Council on research that supports
Canadian businesses develop innovative products and services • Committing $500 million of venture capital funding for innovative firms
Streamlining the Scientific Research and Experimental Development tax incentive program and shifting the incentive from an indirect to a more direct support program.
This article has been adopted from the presentation by Adriana Mema, Adriatica Construction Ltd. CIQS AGM, July 6, 2012, St. Johns, Newfoundland.
Cost Consultants, Project Monitors and Proud Supporters of the CIQS
100 York Blvd., Suite 608, Richmond Hill, ON L4B 1J8 Tel 905.889.9996
www.pelicanwoodcliff.com
Diversity in the workplace
Hello everybody and welcome to the wonderful place called the Rock. Before I begin my presentation, I would like to thank the CIQS for giving me the opportunity to speak about diversity and recognize our sponsors who make this event possible: The Altus Group, Turner & Townsend, and the LEC Group.
My name is Justin Mercer and I am 22 years old. I come from a rural community called Upper Island Cove which has virtually no services for someone with Cerebral Palsy. When I was born, the doctors said I would never talk, walk, or put sentences together. However, with the support of my family, friends and others, I was able to attend regular school, participate in events, and live a normal life.
I did many things over the years that many others thought I could never do! I played goalie in school hockey, played musical instruments and was active in many sports such as sledge hockey and rock-climbing. More recently, I obtained my driver’s license, advocated for disabled individuals and competed in South Korea as part of Team Canada.
In 2007, I started my studies in Architectural Technology at the College of the North Atlantic, Ridge Road Campus. I have since graduated and am currently working with Service NL as a Design Approval Technician. I am also studying for the PQS designation which will expand my skillset and open the door to more opportunities in the future.
Canadian companies today face a looming labour shortage crisis. Many of us observe and are reminded of these challenges every day.
The first and most prevalent challenge is the changing demographics of our labour markets. Our baby-boomer generation in the labour force is rapidly reaching retirement age. In 2010, this age bracket made up approximately 17% of our entire labour force. 25% of our own public service workers will be eligible for retirement in the next five years. The loss of these workers coupled with our low fertility rates will exacerbate current labour shortages. Some analysts see immigration as the solution to sustain our population. Statistics Canada projects that by 2031, one-third of all Canadians in the labour force will be either foreignborn or belong to a visible minority.
The second challenge is the increasing evidence of a global economy. Gone are the days of our economic activity driven by domestic production of goods and services and labour markets composed of locals. The economy is now largely global in nature, thanks to improved shipping, transportation and technology. Although our service industry has grown, our domestic manufacturing base has been in decline ever since. Globalization presents opportunities for Canadian companies to enter markets offshore but also presents challenges in that companies now must be more competitive overall. Our labour market has been affected likewise.
The third challenge is on-going technological change. Technological advances such as banking ATMs, computers and the internet play a part in our lives every day and also affect labour markets. For example, farming once was very physical and laborious work. However, with the advent of mechanized equipment, some jobs became obsolete. Technological advances, in general, heighten labour productivity, make jobs obsolete and shift demand for highly skilled workers.
Diversity can be defined as the acceptance, embracing and inclusion of differences among people. Differences include: age, ethnicity, race, sexual orientation, abilities, etc. I believe workplace diversity is a necessity in today’s world and should be part of every business model. Why? People are an asset to companies and it is an effective solution to the challenges facing our labour markets today. First of all, it combats our changing demographics problem by appealing and welcoming immigrants into our country. Secondly, diversity can assist companies wishing to establish operations in different countries overcome hurdles such as different languages, cultures, laws, or business practices. Thirdly, diversity can help attract highly-skilled workers to work for our companies. This would keep us competitive in the ever-growing global economy.
The benefits of diversity, however, do not stop there. Others include: higher productivity, low employee turnover, innovation and increased customer service. Attitudes differ around the world about work. Recently, the OECD reported that Korean workers ranked 1st in average number of hours worked while Canada ranked 18th out of the 34 countries. Staff turnover is costly to companies with investment of time and money. An inclusive workplace helps retains workers as they feel valued and respected. The potential for increased innovation and customer services stem from new ideas workers bring with them and their ability to deal with foreign clients or partners.
Personally, I faced many challenges during my job search. The college prepared me for the workforce with a technical background in architecture, buildings and construction. Graduates could potentially find employment with consulting and construction firms, government departments, manufacturers and suppliers. However, nearly 50% of architectural and engineering firms in this city are inaccessible for me. The vast majority of contractors with offices are also inaccessible. I applied with government departments as well. Employers proposed the idea of working from home but due to my lack of experience, I rejected the notion. Months went by with no success and that is when I took my plight to the House of Assembly and the media to raise awareness about the issue. I believe this action helped me obtain employment.
Last October, I was selected for Team Canada to compete in architectural CADD at the 8th International Abilympics held in Seoul, South Korea. This was an event to showcase the vocational skills and talents of persons with disabilities. Over 1,500 competitors from 57 nations around the globe competed in various
By Justin Mercer
categories such as CADD, computer assembly and graphics design. The talents competitors showed throughout the week were awesome. I met one person from Hong Kong who was an artist and painted solely with his mouth. I was honoured to have been given one of his works of the bustling Hong Kong Harbour.
Every one of these individuals and their skillsets would be a major asset to any firm that would hire them. Unfortunately, many of them will never find employment. In the past, barriers such as inaccessibility, attitudes, and lack of workplace supports prevented disabled people from being productive citizens in our society. For the most part, they were inside looking out. While there have been improvements to break down barriers, many still exist. Today, we are outside looking in. Everyone is quick to lay blame on the governments but until the attitudes of companies change, programs and regulations developed will do little good.
How do we integrate diversity in our workplaces? Companies first need to recognize the value in recruiting persons of visible minorities. Only then can guidelines, policies, HR practices, This article was presented at the 2012 AGM by Justin Mercer, Associate member of CIQS.
etc. foster a workplace of inclusion.
Before I close, I would like to thank the CIQS, listening audience as well as the sponsors for giving me the opportunity to share this message. I hope that all of you will spread the message about diversity so that individuals like myself and the 1,500 participants who competed can become active and productive citizens across the country.
QUANTITY SURVEYORS, ESTIMATORS, PLANNERS
A leading Cost Consulting and Project Management firm requires the following candidates for its Montreal and Ottawa offices:
Junior, intermediate and senior level Q.S.’s, Estimators and Planners with experience on:
• Commercial and institutional projects • Industrial projects (oil/gas, refineries, mining, metallurgical).
We offer competitive salaries, benefits, training and potential for growth. Relocation assistance will be provided. We sincerely thank all applicants, but only those candidates which meet our requirements will be contacted.
Please send resume in strictest confidence to: LCO - Construction and Management Consultants Inc.
Fax: 514-846-8913 | Phone: 514-846-8914 | E-Mail: MONTREAL@LCOGROUP.COM
2012 congrès annuel de l’ICÉC –Québec
Dans l’objectif d’initier des liens entre les étudiants et les membres actifs du marché de la construction, L’ICÉC –Québec a tenu son congrès annuel au Campus Notre-Dame de Foy à Québec, le 11 mai dernier. L’événement a atteint un record de participation (130 personnes) et fut un grand succès!
Le corps professoral et les responsables des programmes (MM. David Benazera et Jean-François Roméo) nous ont chaleureusement accueilli et félicité de cette initiative. La ministre du Travail du Québec, Madame Lise Thériault a aussi salué nos efforts et s’est réjouit de la participation étudiante, y voyant l’intérêt de nos jeunes et la création d’une relève dans cette discipline spécifique.
Lors de cet événement, M. Patrick Vallerand, ÉCA n’a pu se présenter pour recevoir son diplôme, L’ICÉC-Québec y a donc remis les diplômes suivants:
2012 CIQS-Quebec Annual Congress
With the aim to initiate some connections between students and active members of the construction market, the CIQS-Quebec held its Annual Congress at the Campus Notre-Dame de Foy, Québec on May 11. The event reached a record attendance (130 peoples) and was a great success. Teachers and Education Program Directors (Mr. David Benazera and Mr Jean-François Romeo) warmly greeted and welcomed this initiative. The Quebec Minister of Labor, Mrs. Lise Thériault also praised our efforts and was happy with the student participation, seeing the interest of our youth and the creation of a new generation in this specific discipline. During this event, Mr. Patrick Vallerand, PQS could not attend to receive his diploma. CIQS-Quebec presented the following certificates:
1. 2. 3.
4. 5.
1. Madame Line Binet, ÉCA, de Planifika GDAI/Mrs. Line Binet, PQS, Planifika GDA 2. Madame Renu Mathiew, ECC, Ville de Montréal/Mrs. Renu Mathieu, CEC, City of Montreal 3. Monsieur Marc-André Croteau, ECC Planifika-GDAI/Marc-André Croteau, CEC-Planifika GDAI 4. Madame Lise Thériault, ministre du Travail et Monsieur Jean Paradis, ÉCA, président de l’ICÉC-Québec/
Lise Thériault, Minister of Labour and M Jean Paradis, PQS, President of CIQS-Quebec 5. Étudiants et professionnels discutant lors du dîner-réseautage/Students and market professionals conversing during the networking-lunch
