Construction Economist Journal - Spring 2013 by ciqs

CONSTRUCTION ECONOMIST SPRING 2013

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

2013

CIQS AGM PM 40065075

MONTREAL – JUNE 13-15

ciqs.org

CONSTRUCTION ECONOMIST SPRING 2013

The mission of CIQS is to promote and advance professional quantity surveying and construction estimating; to establish and maintain national standards; to recruit, educate and support our members.

Canadian Institute of Quantity Surveyors 90 Nolan Court, Unit 19, Markham, ON L3R 4L9 t. 905/477.0008 f. 905/477.6774 toll free. +1 866/345.1168 e. info@ciqs.org www.ciqs.org

Executive Director Lois Metcalfe. ........................... . . . . . . execdir@ciqs.org Editor Joshua Mutize, PQS.................... . . conecon@ciqs.org Translation André Bernard, ECA Send Change of Address to: Canadian Institute of Quantity Surveyors 90 Nolan Court, Unit 19, Markham, Ontario  L3R 4L9

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

Features New modern corporate law applicable to non-share capital corporations in force now . . . . . . . . . . 10 The 2013 CIQS AGM and Congress/ Le congrès et l’AGA de l’ICÉC-National 2013 . . . . . . . . . . 11 Construction cost trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Prince Edward Island new revenue tax changes. . . . . . . 24

CIQS Council

Real property contractors Provincial Sales Tax Act in British Columbia . . . . . . . . 26

President: Mark Russell, PQS(F) 1st Vice President & CIQS - Maritimes Rep: Mark Gardin, PQS 2nd Vice President and CIQS – Prairies and NWT Rep: Dave Burns, PQS

Secretary/Treasurer & CIQS – British Columbia Rep: Roy Howes, PQS Registrar and CIQS – Ontario Rep: Chris Court, PQS CIQS - Québec Rep: Jean Paradis, ECA Past President & CIQS - Newfoundland and Labrador Rep: Roy Lewis, PQS(F) Education Administrator: David Lai, PQS(F)

Statements of fact and opinion expressed are those of the authors and CIQS assumes no responsibility for the content, nor do they represent official policy of CIQS.

Departments

Published four times a year on behalf of the Canadian Institute of Quantity Surveyors by

President’s message. . CPD Corner . .

Third Floor - 2020 Portage Avenue Winnipeg, Manitoba R3J 0K4 Tel: 866-985-9780 Fax: 866-985-9799 info@kelman.ca www.kelman.ca Managing Editor. ....................... Chris Kelman Art Design/Production. ..... Kiersten Drysdale Advertising Coordinator. ...... Stefanie Ingram Marketing Manager. .................. . . . Kris Fillion kfillion@kelman.ca 866-985-9798 Publication Mails Agreement #40065075 Send undeliverable addresses to: lauren@kelman.ca

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Education updates . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Industry news. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

In Memoriam . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

OUR CONCERN FOR THE ENVIRONMENT IS MORE THAN JUST TALK This document is printed on paper certified to the standards of the Forest Stewardship Council® (FSC®).

President’s Message

Changes are afoot at CIQS

s mentioned in my previous message, changes are afoot at CIQS. Since the last edition of the Construction Economist we have had our very first CIQS Council video conference meeting, passed the motion to proceed (subject to approval by the membership at the AGM) to become an Association of Associations under the new Canada Corporations Not-For-Profit Act, and launched the new CIQS website. The video conference meeting was not without its technical difficulties, but we managed to make it work. Video conferencing meetings will cut down on the costs associated with having face-to-face meetings and also reduce the amount of travel required by Council. The subject of the video conferencing meeting was to discuss the first draft of the proposed new Bylaws which were circulated by Nick Pasquino, of Borden Ladner Gervais LLP, CIQS Legal Council on the transition to the new Not-For-Profit Act. The decision to become an Association of Associations was one reached after lengthy and detailed discussions between Council on this subject. There are pro’s and con’s for each pathway and Council, as the custodians of the Institute, had a particularly torrid time establishing which route was the best fit for the future of the Institute. This vote was possibly the most critical vote a CIQS Council has had to make in many years and this is reflected in the voting on the item, which was a narrow majority - contrary to how Council generally votes on most other matters. Nick Pasquino has a small article on this subject later in this edition of Construction Economist and will join the Executive Council for a conference call to field any queries which the

members may have. He will also be present at the AGM in Montreal to answer any legal questions regarding the Act. Given the implications of the changes to the Institute, we encourage and welcome participation from the membership on this subject. The new website was launched in late March and the initial response appears to be positive. Lois Metcalfe deserves the plaudits for working relentlessly and tirelessly on this venture. As most members who have had dealings with Lois will testify, she has the best interests of the Institute at heart at all times, and this was certainly shown in the weeks surrounding the website launch. It would be remiss to overlook the efforts put in to the new website by the Affiliated Associations and their support and administrative staff, so thanks to the many resources across the country who were involved in putting together the content for the Affiliate sites and carrying out translation duties. We now have a website that befits a forward looking and professional organization. Speaking of professional organization, the CIQS 2013 AGM committee, headed by Past CIQS President Herve Couture, has planned an expansive and varied program for this year’s AGM in Montreal. The AGM will be held at the Intercontinental Hotel and promises to provide bi-lingual technical seminars (complete with CPD points for attending), keynote speakers and other extra-curricular activities. CIQS-Quebec has opened this event up to Industry at large, which will provide great exposure to the Institute provincially and nationally, so come and join your fellow members and colleagues, meet new people and contacts, and enjoy all the delights Montreal has to offer.

4 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

Mark Russell, PQS(F)

This is my last message as your President and I can honestly say that it has been a tremendous pleasure to work with CIQS Council and the Executive Director this past year. Prior to every Council meeting Lois Metcalfe posts a message up in the venue which simply states “For the Good of the Institute.” This is a reminder to Council as to why they are there and to what purpose they serve. Over the years I have worked with a number of Council members who have given up their time to serve as volunteers on Council and even though they all have different opinions, personalities and backgrounds, every Council member has worked in their own way to better the Institute and are a credit to the members they serve. This is also true of every member across the country who volunteers their time on Affiliate Boards or Chapters, marking or setting exams, volunteering time on committees or trade show booths, carrying out evaluations, or just generally promoting the Profession. CIQS is becoming more recognized both at home and internationally and we have an ever expanding list of fully and partially Accredited Post-Secondary Facilities across the country. To those volunteers I want to say thank you. You are the very essence of the Institute and it is only through your continuing efforts that we are able to expand on what our predecessors have done, and grow the Institute even further. Having walked in the footsteps of giants, I hand the baton to incoming President Mark Gardin, and new Vice President Dave Burns, in the knowledge that we are in excellent hands when it comes to “the good of the Institute.” I wish them both every success in their new roles.

Message du Président

Des changements se réparent à l’ICÉC

omme je l’ai mentionné dans mon précédent message, des changements se préparent à l’ICÉC. Depuis la dernière édition du Construction Economist, nous avons tenu notre première réunion du Conseil en vidéoconférence; voté une motion (sujette à l’approbation des membres au prochain AGA) d’aller de l’avant pour devenir une Association d’Associations selon la nouvelle Loi canadienne sur les organisations à but non lucratif; et lancé la nouvelle plateforme du internet de l’ICÉC/CIQS. La réunion en vidéoconférence ne s’est pas déroulée sans incidents techniques, mais nous avons trouvé le moyen de faire fonctionner le tout. Les rencontres en vidéoconférence vont permettre de réduire les coûts reliés aux réunions faceà-face et aussi de réduire la quantité de déplacements requis du Conseil. L’objet de la rencontre en vidéoconférence fut pour discuter de la première mouture de nouveaux règlements proposés qui furent distribués par Nick Pasquino, de Borden Ladner Gervais LLP, les aviseurs légaux de l’ICÉC concernant la transition vers le statut d’organisation à but non lucratif. La décision de devenir une Association d’Associations fut atteinte après des discussions longues et détaillées au sein du Conseil sur le sujet. Il y a des pour et des contre pour chaque avenue et le Conseil, à titre de gardien de l’Institut, a vécu des moments torrides à déterminer quelle route était la mieux tracée pour le futur de l’Institut. Ce vote fut possiblement le vote le plus critique qu’un Conseil de l’ICÉC eut à prendre depuis de nombreuses années et ceci se reflète dans le vote sur un sujet, à majorité réduite – contrairement à comment le Conseil vote sur la plupart des autres sujets. Nick Pasquino a rédigé un petit article sur le sujet que vous trouverez dans les pages de la présente édition Construction Economist. Il se joindra au Conseil exécutif pour un appel conférence

pour traiter de toute question que les membres poseront et aussi sera présent à l’AGA de Montréal pour répondre à toute question légale se rapportant à cette loi. Vu les implications des changements sur l’Institut, nous encourageons et invitons la participation des membres sur ce sujet. Le nouveau site internet a été lancé fin mars et la réponse initiale semble positive. Lois Metcalfe mérite les louanges pour son infatigable et persévérant travail dans cette entreprise. Comme chacun des membres ayant eu affaire à Lois le confirmera, elle a à cœur et veille aux meilleurs intérêts de l’Institut en tout temps, et cela était très visible dans les semaines entourant le lancement du nouveau site internet. Nous ne pouvons manquer de saluer les efforts mis dans le nouveau site internet par les Associations affiliées et leur personnel administratif. Aussi, merci à toutes les ressources à travers le Canada qui se sont impliquées à produire et rassembler le contenu pour les sites des Affiliés et produire les traductions requises. Nous avons maintenant un site internet qui sied à une organisation professionnelle tournée vers l’avenir. Parlant d’une organisation professionnelle, le comité organisateur de l’AGA 2013 de l’ICÉC, dirigé par Hervé Couture, ancien président de l’ICÉC, nous a préparé un programme étendu et varié pour l’AGA de cette année à Montréal. L’AGA se tiendra à l’Hôtel Intercontinental et promet de procurer des séminaires techniques bilingues (avec des points CPD pour les participants), des conférenciers d’intérêt et de nombreuses activités para-AGA. L’ICÉCQuébec a ouvert l’événement à toute l’industrie, ce qui apportera à l’Institut une grande exposition tant sur le plan québécois que canadien, alors venez vous joindre à vos collègues et membres, rencontrer de nouvelles personnes, faire des contacts, et profiter de toutes les bonnes choses que Montréal a de mieux à offrir.

Ceci est mon dernier message à titre de président et je peux honnêtement dire que ce fut un immense plaisir de travailler avec le Conseil de l’ICÉC et de sa Directrice exécutive durant l’année écoulée. Avant chacune des réunions du Conseil, Lois Metcalfe affiche un message dans la salle qui dit simplement «Pour le bien de l’Institut». Il agit comme aide mémoire au Conseil sur le pourquoi de la présence de chacun et à quelle fin il est à cet endroit. Au cours des années, j’ai travaillé avec un bon nombre de membres du Conseil qui ont donné de leur temps à servir comme bénévoles sur le Conseil et même s’ils ont des opinions, personnalités, expériences différentes, chacun des membres du Conseil a travaillé à sa manière à améliorer l’Institut et sont un avantage aux membres qu’ils servent. Cela est également vrai pour chacun des membres à travers le pays qui œuvrent comme bénévoles au sein des bureaux de direction des Associations ou Chapitres affiliés, préparant ou corrigeant des examens, donnant leur temps à des comités ou des expositions de l’industrie, ou simplement à faire la promotion de la profession. La reconnaissance de l’ICÉC, tant chez nous qu’à l’international, se renforce et notre liste d’établissements d’enseignement post secondaires à travers le pays est en continuel développement. À ces bénévoles, je dis merci. Vous êtes l’essence même de l’Institut et ce n’est qu’à travers vos efforts continus que nous sommes en mesure de prendre de l’expansion par rapport aux accomplissements de nos prédécesseurs et faire grandir davantage l’Institut. Ayant marché dans les traces de géants, je passe le bâton au nouveau président Mark Gardin et au nouveau Vice-président Dave Burns, sachant que nous sommes entre d’excellentes mains quant il s’agit «du bien de l’Institut». Je leur souhaite tous les succès dans leurs nouveaux rôles.

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 5

CPD Corner

Not ready to stop CPD, profiling Robert Story

Mark Gardin, PQS

For this instalment of the CPD Corner I thought I would take the opportunity to profile a truly great quantity surveyor who is a long time practitioner of continuous professional development. Robert Story, or better known simply as Bob, has spent his entire career in the electrical field much of it as an estimator and quantity surveyor in Atlantic Canada. He is a Honourary Life Member of CIQS Maritimes.

Bob was born March 19, 1923 in the north end of Halifax. His father was a World War I veteran and served with the Calvary for Canada. In 1940, at age 17, Bob joined the workforce as an apprentice electrician at the Halifax Shipyards until June 1942 when he enlisted in the army and served in England, France, Belgium and Holland during World War II. While serving, he volunteered to join the Special Forces and returned back to Canada in July 1945 to train in Nova Scotia. But only a month into the training, the unit was disbanded after the war in the Far East ended. Bob quickly returned back to Halifax Shipyards and continued as an electrical apprentice until November 1947 when he was transferred to the electrical drawing office working on the destroyer ship programme. In May, 1947 he married his wife, Mary, and they will soon be celebrating their 66th anniversary. Bob and Mary have three

Pictured above left is Bob’s father after WWI and above right is Bob after WWII. 6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

daughters and one son and now enjoy six grandchildren and five great grandchildren. In 1950, Bob joined Bedard & Girad Ltd, an electrical contractor and worked in the field on many different sites in the Maritime Provinces until 1952 when he was asked to join the estimating department. In 1955, he moved to Canadian Comstock International and opened an office in Dartmouth, NS. Bob worked as an estimator and project manager on major projects throughout Atlantic Canada. Bob remembers one of many interesting projects he worked on in Northern Nova Scotia where he estimated and project managed the electrical contract for a Receiving and Transmitting Facility for NATO. The project involved constructing an enormous underground bunker. “Every piece of rebar had to be grounded and there were 20 men mostly welding ground bars for nearly two years.” Another interesting project was the Springhill Institution – a medium security penitentiary. “It was the first precast project in Nova Scotia and nobody quite knew how to estimate productivity for site labour. I remember the project was so large, my estimate was over five inches thick of paper.” “And back in those days everything was done on a handshake. Whether it was to award a job, order materials, or lend some of your men to the competitors to help them get their job done. It was much easier back then because the jobs were not under the same pressures to be completed as they are today.” After 10 years with Comstock, Bob joined F.C. O’Neil Scriven Associates Ltd, a large consulting and design firm in Halifax performing many duties including budgeting, project management and drawings. In 1971, F.C. O’Neil Scriven loaned Bob to Public Works and Government Services Canada where he was involved in building design and costing in the electrical section. Following three years with the Federal Government, Bob rejoined Canadian Comstock International as estimator and project manager in their electrical division in the Dartmouth Office.

CPD Corner

Pictured above left are Bob and Mary and their wedding day and above right is a recent picture of Bob and Mary.

In 1977, Bob opened the electrical section for Steen Mechanical Contractors Ltd where he oversaw the estimating and project management team in the electrical division for Nova Scotia and New Brunswick. And finally in 1981, Bob officially opened his own consulting firm, Robert M. Story Consulting and Drafting Services Ltd. In the early years, Bob focused on drafting services which became quite a costly endeavour in the early 1980’s as new, highly sophisticated, computer aided drafting programs were being introduced into the market. Not only were the programs expensive to purchase, continuously training staff to keep current was also a huge expense. “I was a great believer of training people that were coming out of technical schools that did not at that time have much chance of getting into the work force due to lull in construction, which was typical to Nova Scotia in those early years.” At the same time the company was delivering drafting services, Bob was also providing electrical cost consulting services to local QS firms. First with Ross Willcocks & Associates, (led by Allen Willcocks, PQS(F) CIQS Past President) and later with Helyar & Associates (led by Hugh Thomas, PQS(F)). “From these gentlemen I owe great deal of gratitude for my

Bob in the 1980’s working in his office in Dartmouth, NS.

learning curve and becoming a Professional Quantity Surveyor within NSAQS.” Bob recalls. Bob also worked closely with Tom Goodyear, PQS, (CIQS Past President) who specialized in mechanical costing and conveniently, they were both working in the same building, on the same floor, so a great relationship formed. Over the years Bob continued to work with local QS firms and for electrical contractors namely: Leslie White, PQS(F) CIQS Maritimes Founding Member and Past President, of P&L Consultants; Vince Minett; and Bond & Coolen Electrical Contracting. “The professional relationships I made turned into great friendships outside of work. Allen, Hugh and Vince were especially a big part in my life as well as many others that I became associated with through quantity surveying.” And through it all, he continued to teach and mentor new recruits to the ways of electrical estimating and budgeting. Bob continues to train new estimators for Bond & Coolen and there was a period of 14 years when he taught the Electrical module for the Construction Administration Technology program at NSIT. I was fortunate to be one of his students and still use some of the techniques Bob instilled in his students on the comprehension and estimating of electrical systems.

Continuing Education at George Brown College We’re known for the variety, quality and convenience of our courses and programs. Our industry-professional instructors, innovative courses and up-to-date distance-education delivery methods keep our students coming back for more. Our series of OIQS/CIQS accredited courses provide the skills and knowledge needed to succeed in the construction estimating/project management field.

Register now at coned.georgebrown.ca For more information, call 416-415-5000, ext. 4861 (long distance 1-800-265-2002, ext. 4861) or e-mail cetechqs@georgebrown.ca.

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 7

CPD Corner

It is so simple for Bob to continue with professional development because he understands the importance of maintaining currency within his profession and he has naturally made it part of his daily routine.

2010 CIQS Maritimes President Mark Gardin presenting Bob with his Honourary Life Member certificate.

Not only does he teach new estimators the basics of material takeoff, productivity, and pricing, he himself keeps up with the latest technologies and is a self taught user of Accubid, computerized estimating software which he uses for all his estimates. He communicates with email and uses the latest version of Excel for portions of his estimates. Not bad for

www.Order

Construction Documents Here.ca Our online store can be your one stop shop: Order the CCA/CCDC documents you need and pay on line. Order today at:

www.OrderConstructionDocumentsHere.ca A Service Provided By

8 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

someone who started his career before pocket calculators, personal computers, faxes, and cellphones were in use. Bob has remained active with CIQS Maritimes since its inception in 1979. He is a founding member and he regularly attends AGM’s (including the 2012 AGM); attended nearly all of the annual Christmas Dinners; was on hand to meet the CIQS Council when they visited Halifax in 2010; and attended the Golf Tournament in 2010. In April, 2010, I had the pleasure of inducting Bob as a Honourary Life Member of CIQS Maritimes. He humbly accepted the award and said there were others that deserved it more. He is a venerable professional, a gentleman, and a quiet leader in the field of quantity surveying. I recently went to lunch with Bob to celebrate his 90th birthday. He continues to work every day and genuinely loves what he does. He still gets excited when you bring him a big roll of plans – you know what I mean - that twinkle in the eye, like the kid in the candy store. During my visit, as we chatted, I mentally tallied up his CPD points for last year just for my own curiosity. Professional Activity: 20 points maximum; Participation: attended CIQS Maritimes AGM = 4 points; Contributions to the QS Knowledge Base: mentoring (on and off for 3 months) +/- 60 hrs = 60 points. Total 2012 CPD points = 84 points. It is so simple for Bob to continue with professional development because he understands the importance of maintaining currency within his profession and he has naturally made it part of his daily routine. Otherwise, he is acutely aware he would not be able to continue to do what he loves without it. As I was leaving, Bob says, “The construction industry has been good to me and I will always cherish the years of working with many people who are still in the workforce and many friends that have passed on through the years.” He then followed with, “I am thinking about retiring in Bob recently in his office putting the finishing touches on another estimate. 5 years.”

BTY GROUP’S

GREATEST ASSET IS OUR

PEOPLE. WE ARE LOOKING FOR • Senior and Intermediate Project Monitors • Senior and Intermediate Cost Consultants • Senior PPP Project Consultants

IDEAL CANDIDATES WILL POSSESS • Engaging leadership, teamwork and initiative skills • Strong negotiation and communication skills • Relevant education and professional qualifications

When you join our team you will have the support of industry leading experts across every Canadian region and abroad. BTY Group proudly supports every team member with excellent compensation, benefits package and relocation assistance; unparalleled opportunities for ongoing professional development; and exciting career opportunities in an involved and progressive work environment. Send résumés and cover letters to careers@bty.com

BTY Group is Canada’s fastest growing consultancy for Cost Management, Project Monitoring, and Public-Private Partnership (PPP) advisory services. Over the last 35 years we have grown to include eight offices across Canada in Vancouver, Toronto, Calgary, Edmonton, Saskatoon, St. Catharines, Ottawa and Montréal. Our commitment to innovation and highly responsive service has helped us build a team of professionals with the local expertise and regional market insights that consistently enhance the value of our clients’ projects, and we are always looking for new projects; and new team members.

2013 | www.ciqs.org ECONOMIST | 9 VANCOUVER • TORONTO • CALGARY • EDMONTON • SASKATOON • ST. Spring CATHARINES • OTTAWA |• CONSTRUCTION MONTRÉAL

BTY.COM

New modern corporate law applicable to non-share capital corporations in force now

he Canadian Institute of Quantity Surveyors (CIQS) exists as a non-share capital corporation incorporated under the Canada Corporations Act (CCA). The CCA has been virtually unchanged since 1917, but a new modern corporate law applicable to non share capital corporations, the Canada Not-for-Profit Corporations Act (CNFPCA) was enacted in 2009 and is now in force. The CNFPCA allows for increased flexibility in governance, and modernizes the not-for-profit corporate regime to align more closely with the corporate laws applicable to business corporations. To benefit from the CNFPCA, all federal non-share capital corporations (including CIQS) must take the legal steps necessary to ‘continue’ (that is, to transfer out of the CCA and into the CNFPCA). If the CIQS fails to continue under the CNFPCA by October 2014, it will be dissolved by Industry Canada, so this is a mandatory process CIQS must undertake. This process involves replacing letters patent with articles, and adopting new bylaws under the CNFPCA. Since changing corporate jurisdictions is a fundamental corporate change, it requires approval by the members of CIQS and this matter will be on the agenda at the 2013 annual meeting of members. The board of directors engaged Borden Ladner Gervais LLP (BLG) to assist with its transition under the CNFPCA. As part of this process we reviewed the existing governance structure and identified certain areas that were ambiguous or confusing, namely, the CIQS membership structure. As currently drafted in the CIQS by-laws, the membership structure is composed, on the one hand, of the provincial

affiliates of CIQS, and on the other hand, of the individuals who hold PQS/CEC designations (the Designationholders). This structure has led to confusion as to whom National Council is accountable – to the various provincial affiliates (and through them the Designationholders) or to Designationholders directly, or to both. After careful deliberation, your National Council has adopted amendments to CIQS governance documents to clarify that National Council is accountable to the provincial affiliates (and through them the Designationholders). As a result of these changes, the provincial affiliates will be responsible for selecting the National Council of CIQS and each provincial association will be required to hold its own democratic, transparent and accountable process for selecting representatives to sit on National Council. Following these changes, individual Designationholders will not be required to attend member meetings, and will not be responsible for directly electing National Council, but Designationholders will otherwise maintain their existing relationship with CIQS through individual licences to use PQS/CEC designations, and the educational and other programming CIQS provides to Designationholders. This new governance structure reinforces the truly national character of CIQS.

10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

In addition, CIQS will continue to expand its national mandate, for example by adopting a national credentialing and disciplinary standards by-law with which each provincial association must comply when conducting disciplinary proceedings. Establishing these national standards is an example of National Council’s desire to strengthen governance of itself and each provincial affiliate in a way that promotes transparency, accountability and fairness practices, with a view to strengthening the public’s perception and trust in the quantity surveying industry across Canada. These proposed changes will be voted on by the membership at the June annual general meeting in Montreal. Additional materials will be circulated to all members and posted on the CIQS website well in advance of the meeting to ensure Designationholders and provincial affiliates have an opportunity to consider and comment on these proposed changes. In this regard, National Council has committed to setting up a conference call question and answer session in advance of the June AGM, for anyone interested in discussing these changes. The date and time and call-in details will be posted on the CIQS website in several weeks and we hope to answer questions and take feedback from interested parties at that session.

Nick G. Pasquino is a lawyer in the Toronto office of Borden Ladner Gervais LLP, solicitors to CIQS. His practice focuses on advising non-share capital corporations on corporate, commercial and governance issues. Mr. Pasquino can be reached at npasquino@blg.com.

2013 CIQS Convention and Annual General Meeting Governance and construction economics Montreal – June 13-15, 2013 We are pleased to invite you to join the partners in the upcoming national convention of the Canadian Institute of Quantity Surveyors (CIQS), to be held at the Intercontinental Hotel in Montreal from June 13-15, 2013. This convention will bring together representatives of companies and institutions involved in construction economics as well as the estimators and quantity surveyors of tomorrow. Lectures and seminars will be adapted to the needs of the industry’s stakeholders. Lectures will be presented in both French and English.

Program Schedule Thursday, June 13, at the Hotel Intercontinental of Montreal (International Business Center) TIME FRAME

ACTIVITY

7:30 am - 8:45 am

Registration, Welcome, coffee and pastries

TITLE

LECTURER

9:00 am - 10:15 am 9:00 am - 10:15 am

Technical session 1 (French)

BIM for project management, cost and quality

Mr. Yvon Chabot, PQS, President Schema Group

Technical session 2 (French)

Disputes in the construction industry

Mr. Joe Morrone, Morrone Layers

10:30 am - 11:45 am

Technical session 3 (French)

Environmental management; The reality of costs in 2013

Mr. Guy Châteauneuf, Inspecsol

10:30 am - 11:45 am

Technical session 4 (French)

The impact of new laws on construction economics

Mr. Yves-Thomas Dorval, Conseil du patronat du Québec

12:00 pm - 1:30 pm

Lunch

1:30 pm - 2:45 pm

Technical session 5 (French)

New integrity specifications for those who have business with the government

Mr. Marc Samson, Quebec Treasury Board Secretariat

1:30 pm - 2:45 pm

Technical session 6 (French)

(To Be Determined)

Mr. Dominic Lemmo, Senior VP TD Banque

3:00 pm - 4:15 pm

Technical session 7 (French)

(To Be Determined)

Mr. Claude Lamothe, Cécobois

3:00 pm - 4:15 pm

Technical session 8 (French)

Governance, contract award and procurement

Mr. Larbi Bennouna, SETYM International

Friday June 14th, at the Hotel Intercontinental of Montreal (International Business Center) TIME FRAME

ACTIVITY

7:30 am - 8:45 am

Registration, Welcome, coffee and pastries

TITLE

LECTURER

9:00 am - 10:15 am

Technical session 9 (French)

Investment opportunities in the construction industry – What does the future hold?

Mr. Jean-Philippe Cliche, Quebec Construction Association-Provincial

9:00 am - 10:15 am

Technical session 10 (French)

Better Capital Planning and Decision Making ; a look at the Asset Management strategies of our Commonwealth cousins, Australia and New Zealand

Mr. Louis-Martin Guénette, Planifika-GDAI

9:00 am - 10:15 am

Technical session 11 (English)

100 years Concrete (for bridge desk purpose) (To Be Determined)

Mr. Daniel Cusson, NCRC

10:30 am - 11:45 am

Technical session 12 (French)

Our Public Procurement Rules. Are they strong enough?

Mr. Luc Martin, CEGQ

10:30 am - 11:45 am

Technical session 13 (French)

How to do business with the Federal Government

Mr. Denis Lévesque, PWGSC Procurement dept

10:30 am - 11:45 am

Technical session 14 (English)

Better Capital Planning and Decision Making; a look at the Asset Management strategies of our Commonwealth cousins, Australia and New Zealand

M. Louis-Martin Guénette, Planifika GDAI

12:00 pm - 2:00 pm

Cocktail, lunch and conference, Graduation and Scholarships, Special Guest

Technical session (English) New Guide on Cost Predictability of Construction Projects

M. John Westeinde,P.Eng « CCA Person of the year Award »

2:30 pm - 5:30 pm

CIQS 2013 AGM (English)

7:30 pm - 10:00 pm

President’s Dinner

Saturday, June 15, at the ‘Club de golf de Meadowbrook’ (http://www.clubdegolfmeadowbrook.com/ ) TIME FRAME

ACTIVITY

9:00 am - 3:00 pm

Clive Evans’ Golf Tournament

For more information regarding registration and the conference’s detailed program, please contact us at: info@aeecq.ca Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11

Congrès national de l’ICÉC 2013 et Assemblée générale annuelle Gouvernance et économie de la construction 13 au 15 juin 2013, à Montréal C’est avec plaisir que nous vous invitons à joindre les partenaires du congrès national de l’Institut canadien des économistes en construction (ICÉC), qui se tiendra à l’hôtel Intercontinental de Montréal du 13 au 15 et juin prochain. Ce congrès réunira dans un même lieu, les estimateurs et économistes en construction, les représentants des entreprises et institutions qui œuvrent dans le domaine de l’économie de la construction. Les conférences et séminaires qui y seront présentés seront adaptés aux besoins des intervenants du milieu de la construction. Les conférences seront présentées en français et en anglais.

Programmation Jeudi le 13 juin, à l’hôtel Intercontinental de Montréal (Centre d’affaires Internationales) HEURE

ACTIVITÉ

07h30-08h45 09h00-10h15 09h00-10h15 10h30-11h45 10h30-11h45

Accueil, mot de bienvenue, café et viennoiseries Conférence 1 (Français) Conférence 2 (Français) Conférence 3 (Français) Conférence 4 (Français)

12h00-13h30 13h30-14h45

Dîner Conférence 5 (Français)

13h30-14h45 15h00-16h15 15h00-16h15

Conférence 6 (Français) Conférence 7 (Français) Conférence 8 (Français)

TITRE

CONFÉRENCIER

Processus BIM pour gestion de projet, de coût et de qualité Litiges dans l’industrie de la construction gestion environnementale ; La réalité des coûts en 2013 Modifications législatives et réglementaires dans l’industrie de la construction : quels impacts pour les entreprises ?

M. Yvon Chabot, ÉCA, président Groupe Schéma M. Joe Morrone, Morrone Avocats M. Guy Châteauneuf, Inspecsol M. Yves-Thomas Dorval, Conseil du patronat du Québec

De nouvelles normes d’intégrité pour les entreprises qui font affaires avec l’État À venir À venir Gouvernance, octroi de contrat et passation de marché

M. Marc Samson, Secrétariat du conseil du trésor M. Dominic Lemmo, v.-p. Senior Banque TD M. Claude Lamothe, Cécobois M. Larbi Bennouna, SETYM International

Vendredi le 14 juin, à l’hôtel Intercontinental de Montréal (Centre d’affaires internationales) HEURE 07h30 -08h45

ACTIVITÉ

09h00-10h15

Accueil, mot de bienvenue, café et viennoiseries Conférence 9 (Français)

09h00-10h15

Conférence 10 (Français)

09h00-10h15 10h30-11h45 10h30-11h45 10h30-11h45

Conférence 11 (Anglais) Conférence 12 (Français) Conférence 13 (Français) Conférence 14 (Anglais)

12h00-14h00

Cocktail et dîner conférence ; Remise des diplômes et bourses, Invité d’honneur AGA de l’ICÉC - (Anglais) Souper du président

14h30-17h30 19h30-22h00

TITRE

CONFÉRENCIER

Perspectives d’investissements dans l’industrie de la construction – Que nous réserve l’avenir? Planification des immobilisations et processus décisionnel ; un regard sur la gouvernance chez nos cousins du Commonwealth, en particulier de l’Australie et la Nouvelle-Zélande Béton 100 ans (tablier de pont) (titre à confirmer) Nos règles de marchés publics résisteront-elles ? Faire affaire avec le gouvernement fédéral Planification des immobilisations et processus décisionnel ; un regard sur la gouvernance chez nos cousins du Commonwealth, en particulier de l’Australie et la Nouvelle-Zélande Conférence (Anglais) Le guide de la prévisibilité des coûts en construction

M. Jean-Philippe Cliche, ACQ – Provinciale M. Louis-Martin Guénette, Planifika-GDAI

M. Daniel Cusson, CNRC M. Luc Martin, CEGQ M. Denis Lévesque, Approvisionnement TPSGC M. Louis-Martin Guénette, Planifika GDAI

M. John Westeinde, ing. Personnalité de l’année de l’ACC (Association canadienne de la construction)

Samedi le 15 juin, au club de golf de Meadowbrook (http://www.clubdegolfmeadowbrook.com/ ) HEURE

ACTIVITÉ

09h00-15h00

Tournoi de GOLF Clive Evans

Pour de plus amples informations concernant les inscriptions et la programmation détaillée, veuillez nous contacter à : info@aeecq.ca 12 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

2013 CIQS AGM & CONGRESS Governance and Construction Economics Congress held June 13-15, 2013, at Montreal’s Intercontinental Hotel Registration Form (one form per person) Name of the participant: Company/Organization: Address: Telephone: DESCRIPTION Thursday, June 13, 2013 CIQS Council Meeting (Council only) Technical sessions package CIQS Reception 6:00 pm Friday, June 14, 2013 Technical sessions package CIQS Council Meeting 2:30 pm – 5:30 pm President’s dinner 7:30 pm June 13-14, 2013 Technical sessions package If you register before April 30, a $20.00 discount will apply to members and non-members

Email: Student Price

Member Price

Non-Member Price

N/A $20.00 No charge

N/A $85.00 No charge

N/A $130.00 No charge

$30.00 No charge $50.00

$100.00 No charge $75.00

$160.00 No charge $85.00

$40.00 N/A

$150.00 -$20.00

$225.00 -$20.00

Total

Sub-total GST 5% (non-taxable) PST 9.975% GRAND TOTAL (gratuities included) Lunches are included in the daily package June 15: Golf: Club de Golf Meadowbrook; 18 holes $35; cart $28 (paid on site). I plan to play: Yes q No q

Depending on your package, please check one conference per time-slot: THURSDAY, JUNE 13, 2013 9:00 am – 10:15 am Conference 1 10:30 am – 11:45 am 1:30 pm – 2:45 pm 3:00 pm – 4:15 pm

q Conference 3 q Conference 5 q Conference 7 q

FRIDAY, JUNE 14, 2013 9:00 am – 10:15 am Conference 9

q Conference 4 q Conference 6 q Conference 8 q

Conference 2

10:30 am – 11:45 am

q Conference 12 q

q Conference 13 q

12:00 pm – 2:00 pm

Conference luncheon (This conference is included in the package.)

Conference 10

q Conference 14 q Conference 11

Payment by cheque only Cheque payable to: Canadian Institute of Quantity Surveyors - Quebec Mail the form and cheque to Isabelle Buisson, at the following address: 8615 Lafrenaie Street St. Leonard, Quebec H1P 2B6 Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13

CONGRÈS NATIONAL DE L’ICÉC 2013 Gouvernance et économie de la construction 13 au 15 juin 2013, à l’Hôtel Intercontinental de Montréal Formulaire d’inscription (un formulaire par personne) Nom du/de la participant(e) : Compagnie/organisation : Adresse : Courriel :

Téléphone : DESCRIPTION Jeudi 13 juin 2013 Réunion des membres du conseil de l’ICÉC Forfait conférences Cocktail de l’ICÉC - 18h00 Vendredi 14 juin 2013 Forfait conférences AGA de l’ICÉC 14h30-17h30 Souper du président - 19h30 Jeudi et vendredi 13 et 14 juin 2013 Forfait conférences Si vous vous inscrivez avant le 30 avril, un rabais de 20.00$ est applicable

Prix étudiant

Prix membre

Prix non-membre

s.o. 20.00 $ s.f.

s.o. 85.00 $ s.f.

s.o. 130.00 $ s.f.

30.00 $ s.f. 50.00 $

100.00 $ s.f. 75.00 $

160.00 $ s.f. 85.00 $

40.00 $ s.o.

150.00 $ -20.00$

225.00 $ -20.00$

Sous-total TPS 5% (non taxable) TVQ 9.975% GRAND TOTAL (Service inclus) Les dîners sont inclus dans le forfait journalier 15 juin: Club de Golf Meadowbrook; parcours 18 trous = 35.00 $, voiturette = 28.00 $ (payable sur place). Je prévois jouer oui q non q

Selon votre forfait, veuillez cocher une conférence par plage horaire : JEUDI LE 13 JUIN 2013 9h00 – 10h15 Conférence 1 10h30 – 11h45 13h30– 14h45 15h00 –16h15

q Conférence 3 q Conférence 5 q Conférence 7 q

VENDREDI LE 14 JUIN 2013 9h00 – 10h15 Conférence 9

q Conférence 4 q Conférence 6 q Conférence 8 q

Conférence 2

10h30 – 11h45

q Conférence 12 q

q Conférence 13 q

12h00 – 14h00

Dîner conférence (La conférence est incluse dans le forfait)

Conférence 10

q Conférence 14 q Conférence 11

Paiement par chèque seulement Chèque payable à : Institut canadien des économistes en construction – Québec Postez le formulaire et chèque à l’attention d’Isabelle Buisson, à l’adresse suivante : 8615, rue Lafrenaie St-Léonard (Québec) H1P 2B6 14 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

Total

2013 CIQS Convention and Annual General Meeting SPONSORS PLATINUM ( $5,000)

GOLD ( $2,500)

SILVER ( $1,250)

BRONZE ( $500)

LE LOGICIEL D’ESTIMATION

GÉNÉRAL

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 15

Education Updates

TPE diary revisions approved

Jones of Halifax, Nova Scotia and Mr. Justin Mercer of St. John’s, Newfoundland. It should be noted here that this is the first time that we have a tie for the Buster Vermeulen Memorial Award. As previously mentioned in the winter edition of the Construction Economist, the TPE diary requirements were under review. My initial review was sent to the newly formed National Education & Membership Committee for comments and recommendations. The final recommendations were presented to the CIQS Council in their March 2013 meeting for approval. Effective immediately, the approved changes are: a) A reduction in the annual working hours from 1,920 to 1,800. This reduction allows for additional lost time during the year due to sickness, emergencies, etc.

am pleased to announce that the performance of our members in the 2012 examinations is back on par to where we expect them to be. The final results of the November 2012 examination session showed a 77% pass rate with a 23% failure rate and, when combined with the May 2012 examination session results, the overall for 2012 is a 72% pass rate with a 28% failure rate. This is a 19% improvement over the 2011 results. The winners of our annual education awards are: • The Frank Helyar Memorial Award for the highest mark (above 75%) in subject #302 – Ms. Amanda White of Beaver Bank, Nova Scotia. • The Buster Vermeulen Memorial Award for the highest mark (above 75%) in subject #308 – Mr. William

David Lai, PQS (F)

b) The merger of 4 sub-sections in Section 6.2.2 – Optional Requirements of the Approved Areas of Experience. A closer examination of the sub-sections revealed that some were duplicated and it is hoped that this reduction/ streamlining will reduce the confusion our members face when filling in their work diaries. c) A reduction in the minimum number of hours required for each sub-section in the Area of Approved Experience. Please note that although the minimum hours are reduced per sub-section, members must still meet the overall minimum annual working hours. d) A reduction in the number of subsections required for Section 6.2.2 Optional Requirements for PQS. This is a result of the merger of sub-sections described in (b) above.

CIQS TPE Diary Requirements Section

Previous Requirements Minimum sub-section required

Minimum working hours per sub-section

Approved Requirements Total minimum working hours required

Minimum sub-section required

Minimum working Total minimum hours per working hours sub-section required

Class D1 Diary (1 Year Duration) – Associate to CEC 6.2.1 - Mandatory

Any 4

160

1,520

Any 4

1,440

6.2.2 - Optional

At least 3

400

At least 3

360

Total

1,920

1,800

Class D2 Diary (1 Year Duration) – CEC to PQS 6.2.1 - Mandatory

Remaining 3 not covered under D1 Diary

160

1,520

All 7 sub-sections

1,440

6.2.2 - Optional

At least 3 not covered under D1 Diary

400

At least 5

360

Total

1,920

1,800

Class D3 Diary (2 Year Duration) – Associate to PQS 6.2.1 - Mandatory

All 7 sub-sections

160

3,040

All 7 sub-sections

128

2,880

6.2.2 - Optional

At least 6

800

At least 5

720

Total 16 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

3,840

3,600

My observation so far is that this book will be an excellent addition to our list of required texts. e) Several changes to the Class D2 Diary (CEC to PQS). These changes allow members to gain credit for a wider work experience and not be as restrictive as the previous requirements. Also, these changes will address the requirements when a member is accepted directly as a CEC and wants to continue to PQS. A comparison of the previous diary requirements with the new requirements is shown in the table on the previous page. These diary changes will also affect our Career Book as well as the Education Policy Guidance Notes. The revised diary requirements, career book and education policy guidance notes will be posted on the CIQS website as soon as possible. The career book is also in the process of being translated to French and will be available soon. I am currently reviewing a proposed new textbook titled Smart Economics in Development Economics written by one of our retired members, Mr. Jim Cuthbert, PQS(F). It is hoped that this book will be available in time for the November 2013 examination. My observation so far is that this book will be an excellent addition to our list of required texts and will not only be very useful for our members studying for subject #C309 – Development Economics, but will be an invaluable source of reference for everyone. Our deep appreciation goes to Mr. Cuthbert for such a valuable contribution to the Institute and our profession.

NEW CERTIFICATE IN CONSTRUCTION ESTIMATING CANADA’S FIRST BCIT now offers the first program of its kind in Canada to be fully accredited by the CIQS as meeting the education requirements for a Construction Estimator Certified (CEC) designation. Obtain the skills to become an estimator and launch your career in the construction industry.

Apply now.

bcit.ca/estimating

It’s your career. Get it right.

OPT 2 Spring 2013 | www.ciqs.org 1 Ad Name: Construction Estimating 2 Media: Construction Economist

| CONSTRUCTION ECONOMIST | 17

Industry News March construction jobs up 7,900 in Saskatchewan There were 547,700 people working in Saskatchewan in March, an increase of 25,700 (4.9%) over last March. That is the strongest rate of employment growth in Canada and the most people ever working in Saskatchewan in the month of March. “March was cold this year in Saskatchewan but our job market was hot,” Economy Minister Bill Boyd said. “Today’s numbers show our Growth Plan is working and our government will keep making decisions that encourage job creation in Saskatchewan.” Saskatchewan had the lowest unemployment rate in Canada in March at 3.9% (seasonally adjusted). That is well below the 7.2% national unemployment rate. Regina’s seasonally adjusted unemployment rate of 3.5% was the lowest among all major cities and Saskatoon’s unemployment rate of 4.0% was the second lowest. Off-reserve aboriginal employment was up by 2,200 (5.6%) for the second month in a row of year-over-year increases, and aboriginal unemployment dropped 1,600 for the sixth month in a row of year-over-year declines. The aboriginal unemployment rate is now 12.2%, down from 15.8% a year ago. “There is still more work to be done in closing the employment gap between aboriginal and non-aboriginal people, but today’s numbers show we are moving in the right direction,” Boyd said. “Jobs are tracking higher so far in 2013 which is an encouraging sign that the Saskatchewan economy will have another good year.” Other highlights include: • Full-time employment increased by 19,800 to a record high of 445,400 for the month of March. • Construction jobs were up 7,900 and Agriculture jobs were up 7,600 yearover-year. • Regina’s employment increased by 7,100 (5.8%) and Saskatoon’s employment increased by 10,600 (7.2%). • Saskatchewan’s seasonally adjusted employment increased by 2,400 (0.4%) from the previous month with the second highest growth rate in the country.

For more information, contact: Deb Young, Economy, Regina; Phone: 306-787-4765; Email: deb.young@gov.sk.ca.

Government to address structural concerns at Invermay Health Centre Saskatchewan has committed $2.8 million to address structural problems at the Invermay Health Centre. Saskatchewan Health Minister Dustin Duncan toured the Invermay facility. In January, long-term care residents and staff at Invermay Health Centre were temporarily relocated to health facilities in neighbouring communities, following the discovery of some structural damage and presence of mould in the building. Temporary relocation of staff and residents to other facilities, including Canora Gateway Lodge, was required while damage to the Invermay facility was assessed and repair work began. “It is a top priority for our government to provide a comfortable and safe place for long-term care residents to stay, and a suitable work environment that allows health care staff to provide quality care,” Duncan said. “We are pleased to see the Sunrise Health Region has begun repairs at Invermay Health Centre to ensure that residents may return to their home as soon as possible.” “We expect the repairs will be completed within six months,” Sunrise Regional Health Authority Chairperson Lawrence Chomos said. “We appreciate the understanding and co-operation from residents, families, staff and the community. The safety, health and comfort of our long-term care residents are the region’s priority.” Duncan also toured the Canora Gateway Lodge, which recently sustained damage in the dining room due to a cracked ceiling beam. The Sunrise Health Region is further assessing the facility and associated costs to repair the damaged area. Since November 2007, the government has made an unprecedented $814 million investment in provincial health system major capital projects, building improvements and equipment upgrades. For more information, contact:

18 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

Tyler McMurchy, Health, Regina; Phone: 306-787-4083.

Granite Developments pleaded guilty to safety violation Granite Developments Inc., has pleaded guilty to one count under the Occupational Health and Safety (OHS) Act for failure to utilize a fall protection system. The company was fined $980 in Regina Provincial Court on March 11, 2013. The conviction is related to an incident which occurred on October 12, 2010. Three workers were observed on the roof of a building without a proper fall protection system. Two other charges against Granite Developments Inc. were stayed. OHS conducts approximately 4,000 worksite inspections annually to ensure standards are known, understood and enforced. OHS has a zero tolerance approach to violations of fall protection. For more information, contact: Shannon McMillan, Labour Relations and Workplace Safety, Regina; Phone: 306-787-0253.

Quebec Portal The new regulatory provisions apply to the owners and operators of the buildings, installations and equipment that are subject to the Regulation. Those provisions, which are contained in the Building section of the Safety Code, introduce new building maintenance and operating standards. They are further to repeated requests from fire safety services providers, and aimed at improving fire prevention, particularly in sleeping areas and private seniors’ residences. By introducing obligations relating to the maintenance and inspection of façades and parking lots, the new requirements also meet many recommendations made by coroners further to fatal accidents. Persons wishing to learn more about the new Regulation may: • consult the Regulation to improve building safety published in the Gazette officielle du Québec • visit the RBQ website at www.rbq.gouv.qc.ca/securite • call the Centre de relation clientèle at 1-800-361-0761

Industry News Portail Quebec La Régie du bâtiment du Québec (RBQ) annonce aujourd’hui l’entrée en vigueur du Règlement visant à améliorer la sécurité dans le bâtiment. Les nouvelles dispositions réglementaires s’adressent aux propriétaires et aux exploitants des bâtiments, des installations et des équipements assujettis. «La sécurité est au cœur des préoccupations de la RBQ et ce règlement s’inscrit dans la mission de notre organisme, qui est de mieux protéger les citoyens. En améliorant la réglementation sur l’entretien des bâtiments, nous souhaitons prévenir des incidents regrettables qui mettent en péril la santé et la sécurité du public», a déclaré le président-directeur général de la RBQ, monsieur Stéphane Labrie. Pour une sécurité accrue Consignée dans le chapitre Bâtiment du Code de sécurité, cette réglementation introduit de nouvelles normes d’entretien et d’exploitation des bâtiments. Elle donne suite à des demandes répétées du milieu de la sécurité incendie et vise à améliorer la prévention des incendies, notamment dans les lieux de sommeil et dans les résidences privées pour aînés. En introduisant des obligations d’entretien et d’inspection des façades et des parcs de stationnement, les nouvelles exigences répondent également à plusieurs recommandations formulées par les coroners à la suite d’accidents mortels.

Le Règlement en bref Le Règlement visant à améliorer la sécurité dans le bâtiment, dont la responsabilité est confiée à la RBQ, comporte les cinq volets suivants: 1. Des normes applicables en fonction de l’année de construction qui ont pour cible la sécurité, la santé ou la protection des bâtiments contre l’incendie et les dommages structuraux. 2. Des dispositions bonifiant les exigences en vigueur lors de la construction. Ces dispositions s’appliquent aux lieux de sommeil et aux établissements de soins avec des exigences particulières pour les résidences privées pour aînés soumises à la certification du ministère de la Santé et des Services sociaux. Les propriétaires et les gestionnaires disposeront de 1 à 5 ans pour se conformer à ces différentes dispositions, selon leur nature et leur complexité. 3. L’intégration du Code national de prévention des incendies (CNPI), publié par le Conseil national de recherches Canada, avec certaines modifications pour tenir compte des particularités du Québec. 4. Des dispositions relatives à l’inspection et à l’entretien des façades de bâtiments d’une hauteur de 5 étages et plus hors sol. 5. Des dispositions relatives à l’inspection et à l’entretien des parcs de stationnement aériens ou souterrains dont au moins une surface en béton ne repose pas sur le sol.

En savoir plus sur le Règlement Les personnes souhaitant en apprendre davantage au sujet de ce nouveau règlement peuvent: • consulter le Règlement visant à améliorer la sécurité dans le bâtiment publié dans la Gazette officielle du Québec • visiter le site Web de la RBQ au www.rbq.gouv.qc.ca/securite • communiquer avec le Centre de relation clientèle au 1 800 361-0761. Elles sont également invitées à visiter notre site Web au cours des prochains jours. La RBQ y déposera plusieurs documents et outils afin de faciliter la compréhension du règlement et de guider les propriétaires et les exploitants pour sa mise en application. La RBQ Présente partout au Québec, la RBQ a pour mandat de veiller à la qualité des travaux de construction et à la sécurité des personnes dans les domaines du bâtiment, de l’électricité, de la plomberie, du gaz, des équipements pétroliers, des appareils sous pression, des ascenseurs, des remontées mécaniques, des jeux et manèges et des lieux de baignade. La RBQ surveille l’application de la Loi sur le bâtiment et la réglementation afférente dans les différents domaines techniques de sa compétence. SOURCE: Marie-Claude Masson, Direction des communications. Pour information: Sylvain Lamothe, Direction des communications; 514- 873-0688; 1-866374-7747.

Congratulations to the following members who have qualified as a PQS or CEC (including reinstatements): CIQS – Quebec Antoaneta Bancheva, ECC Isabelle Delisle, ECA Benoit Duchesne, ECC Serguei Remeniak, ECC Guillaume Robitaille, ECA André Roy, ECC CIQS – Ontario Dwight A. Baugh, PQS Deroy Destang, PQS

Mehrdad Fakkrjahani, CEC Hanzel Jimenez, CEC Hengmin Li, CEC Christopher Matz, PQS Ryan McGonigle, CEC Stanislav Markovich, CEC Arvindkumar Mishra, CEC Larry Vidinovski, PQS Stephen Wells, PQS Chun Xiao Wei, PQS Mandrew Zhao, CEC

CIQS – British Columbia Derek Andrew, PQS Doina Dobre, CEC Timothy Frank, CEC Rachel Harrington, CEC CIQS – Prairies and NWT Kevin Ellis, PQS Michael Gabert, CEC Ven Richard Guerra, PQS Alex Marsh, CEC Donald Maw, PQS

CIQS – Maritimes Brett Kristiansen, CEC Chris Pezzareallo, CEC CIQS Members at Large Kunaseelan Shanmugarajah, PQS Suthan Shanmugaratnam, PQS

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 19

Construction cost trends Building permits, January 2013 Municipalities issued building permits worth $5.8 billion in January, up 1.7% from December. The increase in the residential sector more than offset a decrease in the non-residential sector. Despite the advance, the total value of building permits has been trending downwards since October 2012. The increase in construction intentions came from every province except Alberta and Quebec. New Brunswick posted the largest advance followed closely by Saskatchewan and British Columbia. In the residential sector, the value of permits increased 17.6% to $3.8 billion in January, following six consecutive months of decline. Ontario had the largest gain, with British Columbia a distant second followed closely by New Brunswick. These gains more than offset decreases in Quebec, Newfoundland and Labrador and Manitoba. However, residential construction intentions are continuing a downward trend that began in July 2012. Construction intentions in the nonresidential sector fell 19.2% to $2.0 billion, following a 7.8% decrease the previous month. Ontario, Quebec and Alberta were responsible for most of the decline. Nonresidential construction intentions rose in Saskatchewan, New Brunswick, Manitoba and Newfoundland and Labrador. The total value of non-residential permits has been on an upward trend since June 2012, following a relatively flat period that began in May 2011. Residential sector: Higher construction intentions for both multi-family and single-family dwellings Construction intentions for multi-family dwellings rose 38.0% to $1.6 billion in January. It was the first increase in seven months. The advance was principally attributable to higher construction intentions in Ontario, British Columbia and New Brunswick. Municipalities issued $2.3 billion worth of building permits for single-family dwellings in January, up 6.6% from December. This was the second increase in seven months. Higher construction intentions in Ontario more than offset

Chart 1 - Total value of permits billions of dollars 7.8 7.4 7.0 6.6 6.2 5.8 5.4 5.0 4.6 4.2 3.8

Seasonally adjusted

3.4

Trend

3.0

2008

2009

2010

2011

2012

2013

Chart 2 - Residential and non-residential sectors billions of dollars 5.0 4.5

Residential

4.0 3.5 3.0 2.5 2.0 1.5

Non-residential Seasonally adjusted

1.0 0.5

2008

2009

2010

2011

Trend J

2012

2013

Note(s): The higher variability associated with the trend-cycle estimates is indicated with a dotted line on the graph for the current reference month and the three previous months. See Note to readers.

decreases in four provinces, led by Quebec and Manitoba. Municipalities approved the construction of 16,002 new dwellings in January, up 15.6% from December. The increase was largely the result of a 25.9% gain in multi-family units to 9,550. The number of permits issued for single-family dwellings rose 3.0% to 6,452 units. Non-residential sector: Declines in all components Construction intentions in the commercial component decreased 15.2% to $1.3 billion, a second consecutive monthly decrease and their lowest level since February 2012. Despite these declines, commercial

20 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

intentions have been on a continuous upward trend since November 2011. Construction intentions for commercial buildings were down in every province except Saskatchewan, Newfoundland and Labrador and Manitoba. Ontario and Quebec had the largest declines. The decrease in January came from a variety of buildings, including retail complexes, hotels and restaurants as well as warehouses in Ontario and office buildings in Quebec. The value of institutional permits declined 26.7% to $366 million in January, falling to their lowest level since January 2012. This was the third decrease in a row. The decline was largely attributable to lower construction

Value of building permits, by province and territory (all permits)

Canada Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick Quebec Ontario Manitoba Saskatchewan Alberta British Columbia Yukon Northwest Territories Nunavut

2008

2009

2011

2012

61,049.4 766.4

2010 All permits $ millions 72,445.5 1,205.2

70,437.4 802.5

73,965.7 1,057.3

80,850.7 1,184.6

216.9 1,326.7 1,113.8 13,806.7 25,414.6 1,636.7 2,185.8 13,141.2 10,577.2 70.0 87.4 58.0

178.6 1,368.7 1,148.2 12,929.7 21,880.5 1,560.7 1,890.3 11,276.9 7,629.9 157.6 164.7 97.2

259.9 1,633.8 1,133.3 14,842.3 28,138.6 1,757.4 2,077.0 11,425.4 9,723.8 130.0 74.4 44.4

242.4 1,464.6 965.9 15,489.6 28,024.4 1,842.1 2,613.9 12,768.1 9,249.8 140.9 21.1 85.6

281.5 1,551.1 968.5 16,062.5 29,547.5 2,485.7 3,114.1 14,662.9 10,759.6 94.7 44.2 94.0

Source: Statistics Canada, CANSIM, tables 026-0003 and 026-0008, and Catalogue no 64-001-X. Last modified: 2013-03-07.

intentions for educational institutions in Ontario, Alberta and Quebec as well as medical facilities in Alberta. Institutional construction intentions have been trending slightly downwards for eight months. Construction intentions in the industrial component fell 25.6% to $296 million in January. This was the third consecutive monthly decrease following a record high in October. Industrial construction intentions have been on a downward trend since June 2012. This follows a continuous year-long increase that began in June 2011. The decrease in January was largely the result of lower construction intentions for mining and primary industry buildings in Ontario, manufacturing buildings in Alberta and utilities buildings in Ontario and Quebec. Industrial construction intentions decreased in seven provinces, led by Ontario, with Quebec a distant second. Most provinces post gains Construction intentions advanced in eight provinces in January. New Brunswick posted the largest advance followed closely by Saskatchewan and British Columbia. In New Brunswick, construction intentions more than tripled following two consecutive monthly declines. The increase was a result of higher construction intentions for residential and institutional buildings. In Saskatchewan, construction intentions grew on the strength of higher

construction intentions for single family dwellings and commercial buildings. A 10.9% increase in British Columbia was attributable to higher construction intentions for multi-family dwellings and institutional buildings. In Ontario (+2.1%), higher residential construction intentions offset declines in non-residential components. The largest decrease occurred in Quebec, where all components except multi-family dwellings fell. In Alberta, the value of permits for institutional and commercial buildings was behind the decline. Just over half of the census metropolitan areas post increases The value of permits was up in 18 of the 34 census metropolitan areas. Toronto, Vancouver and Saskatoon recorded the largest gains. Toronto reported advances in residential buildings. Vancouver’s gain came from multi-family dwellings and institutional buildings, both of which had decreased the previous month. In Saskatoon, the increase came mainly from higher construction intentions for commercial buildings and single-family dwellings. The largest declines occurred in Montréal and Kitchener–Cambridge– Waterloo. In Montréal, the decline originated from lower construction intentions for commercial buildings and to a lesser extent single-family dwellings and industrial buildings. In Kitchener–

Cambridge–Waterloo, lower construction intentions for institutional buildings were behind the decrease. Source: Statics Canada The January 2013 issue of Building Permits (Catalogue number64-001-X) For more information, contact us (toll-free 1-800-263-1136; infostats@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Jason Aston (613-951-0746), Investment, Science and Technology Division.

Labour Force Survey, March 2013 Following an increase the previous month, employment declined by 55,000 in March, all in full time. The unemployment rate rose 0.2 percentage points to 7.2%. Despite the decline in March, employment was 1.2% or 203,000 above the level of 12 months earlier, with the increase mainly in full-time work. Over the same period, the total number of hours worked also rose by 1.2%. Provincially, employment declined in Quebec, British Columbia and Alberta, and edged down in Ontario. The only province with an increase was Nova Scotia. In March, there were fewer people employed in three industries: accommodation and food services, public administration and manufacturing. At the same time, there was little change in the other industries. There were 85,000 fewer private-sector employees in March, while the number of self-employed rose by 39,000 and the number of public-sector employees was little changed. Compared with 12 months earlier, the number of private-sector employees increased by 1.0% or 111,000, while the number of self-employed was up 2.1% or 55,000 as a result of the gains in March. Public-sector employment was little changed over the 12-month period. Employment in March decreased among people aged 25 to 54, while there was little change among youths and people aged 55 and over. Provincial summary Employment in Quebec declined by 17,000 in March, and the unemployment rate rose 0.3 percentage points to 7.7%. Despite this decrease, employment in the province was 1.6% above the level of 12 months earlier,

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 21

Chart 1 - Employment

declined by 24,000 in March, following a similar decrease the previous month. Employment growth in the spring of 2012 was followed by losses since the summer, leaving employment in this industry down 2.8% from 12 months earlier.

thousands 17,900 17,700 17,500 17,300 17,100 16,900 16,700 16,500

2008

2009

2010

2011

J M

2012

2013

Chart 2 - Unemployment rate % 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5

2008

2009

compared with a national growth rate of 1.2%. Employment in British Columbia was down 15,000, offsetting most of the increase in February. This pushed the unemployment rate up 0.7 percentage points to 7.0%. Compared with 12 months earlier, employment in the province was little changed. In Alberta, there were 11,000 fewer people employed in March, the first notable decline in more than two years. The unemployment rate in the province rose 0.3 percentage points to 4.8%, still one of the lowest in the country. While there were fewer people working in March, Alberta experienced employment growth of 1.7% on a year-over-year basis. In Ontario, employment edged down by 17,000 in March, following an increase of 35,000 the month before. The unemployment rate held steady at 7.7%, a result of fewer people participating in the labour force. Year-over-year employment growth in the province was 0.8%. Nova Scotia was the only province with an employment increase in March,

2010

2011

2012

J M

2013

up 2,900, following a similar increase the month before. The unemployment rate in the province was 9.5%. Despite the recent gains, employment was little changed compared with 12 months earlier. While employment in Saskatchewan was little changed in March, the province experienced the strongest year-over-year growth in the country, at 4.6%. The unemployment rate was 3.9% in March, still the lowest among all provinces. Industry employment In March, there were notable employment declines in accommodation and food services, public administration and manufacturing. Employment in accommodation and food services fell by 25,000, offsetting an increase the month before. This left employment in the industry similar to the level of 12 months earlier. Public administration employment decreased by 24,000 in March, leaving employment in this industry down slightly from 12 months earlier. The number of workers in manufacturing

22 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

Employment declines among people 25 to 54 Among people aged 25 to 54, employment declined by 47,000, equally divided between men and women. Compared with 12 months earlier, employment for this age group was up 0.6% or 68,000. Employment among those aged 55 and over was little changed in March. On a yearover-year basis, employment among people in this age group rose by 4.2% or 135,000, partly a result of population ageing. Among youths aged 15 to 24, employment was also little changed in March, while their unemployment rate increased 0.6 percentage points to 14.2%, as more youths searched for work. Employment among youths has been on a slight upward trend since August 2012. Quarterly update for the territories The Labour Force Survey also collects labour market information about the territories. This information is produced monthly in the form of three-month moving averages. The following data are not seasonally adjusted; therefore, comparisons should only be made on a year-over-year basis. In the first quarter of 2013, employment and the unemployment rates in Yukon and the Northwest Territories were similar to those of the first quarter of 2012. The unemployment rate was 7.6% in Yukon and 8.0% in the Northwest Territories in the first quarter of 2013. In Nunavut, employment increased by 700 in the first quarter of 2013, compared with the same quarter in 2012, and the unemployment rate fell from 15.3% to 11.4% over the same period. Source: Statistics Canada, Labour Force Information (Catalogue number71-001-X), The next release of the Labour Force Survey will be on May 10. For more information, contact us (toll-free 1-800-263-1136; infostats@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Vincent Ferrao (613-951-4750; vincent.ferrao@ statcan.gc.ca) or Jeannine Usalcas (613951-4720; jeannine.usalcas@statcan.gc.ca), Labour Statistics Division.

CB ROSS COST CONSULTING

JOB OPPORTUNITIES - Senior Cost Planner - Project Monitor

C.B. Ross Cost Consulting is a consulting firm located in Toronto, Ontario offering consulting services to a wide spectrum of clients from project inception through to completion. We have job opportunities in our Project Monitoring and Cost Planning/Estimating departments. Candidates must have:- relevant experience in the construction industry - strong communication skills - time management skills - be working towards (or have interest in) RICS and CIQS membership. In return, we offer an extensive employee package commensurate with expertise, qualifications and skills. If you are interested, please submit your resumé by email: mail@cbross.ca or by fax: (416) 487-3017 Only select candidates whose resumés best match our requirements will be contacted.

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 23

Prince Edward Island new revenue tax changes ON APRIL 1, 2013 the provincial revenue tax (PST @10%) and the goods and service tax (GST @ 5%) were replaced in Prince Edward Island by the harmonized sales tax (HST). The HST tax rate is 14% and is a combination of a provincial portion (at 9%) and a federal portion (at 5%). During the sitting of the Legislative Assembly in the fall of 2012, amendments to the Revenue Tax Act were passed which, effective April 1, 2013, remove the requirement for businesses to charge, collect and remit the PST. There are a number of provisions of the Revenue Tax Act that will remain in force for a period of time as the administration of the PST is wound down. Please refer to the Canada Revenue Agency website (www.cra-arc.gc.ca) for assistance with the application of HST in Prince Edward Island,or call 1-800-959-5525 or visit www.peihst.ca. Here are some things businesses may want to consider when preparing for the HST: 1) Determine whether your supplies will be subject to the HST. You may be required to charge HST on goods and services that were not subject to revenue tax.

Digitize Directly

2) Review the transitional rules to determine whether the HST will apply to any payments that become due or are paid on or after February 1, 2013, for your supplies. Also, determine whether you will have to self-assess the 9% provincial part of the HST on any payments that become due or are paid after November 8, 2012, and before February 2013 for your purchases. 3) Update your point-of-sale systems (e.g. cash registers), computer systems, manual accounting or invoicing systems, etc. in order to properly charge and account for the HST on your supplies. Examples of these updates could include: • amending software and tax codes to accommodate the various tax rates; • amending automated systemgenerated entries to reflect the correct tax amount; • ensuring software and systems can accommodate PEI’s point-ofsale rebates; or • modifying systems to track the federal and provincial components of the HST, if necessary.

on your screen from files with . . .

eTakeoffs of ePlans in Microsoft Excel. The drawing and measurement are saved with any cell.

On-Screen Site Excavation Software

You don’t work for our software, it works for you.

Calculate cuts & fills by digitizing on your screen. Our Canadian distributor

www.vertigraph.com

Interworld: 800-663-6001

Order online at http://interworldna.com/vertigraph/siteworx_os.php and get FREE SHIPPING with this code: shp_qs2013 Valid through July 31 of 2013

24 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

4) Ensure your accounting systems can properly record and account for any eligible input tax credits on your purchases, and properly report any recaptured input tax credits, if necessary. • Update tables/codes for accounts payable systems that automatically record input tax credits based on embedded taxes. 5) Ensure your accounting systems can properly record and account for the HST that may apply to any payments that become due or are paid on or after February 1, 2013. Generally, if the HST applies to any such payments, the 9% provincial part of the HST on both your supplies and purchases will have to be reported or claimed, as the case may be, in your GST/HST return that includes April 1, 2013. • Ensure your accounting system is able to account for both GST/PST and HST on the same invoice, if necessary. 6) Modify pre-printed lists or internet web sites containing sales tax information. • Ensure your invoices properly state whether HST is applicable, the HST rate, your GST/HST registration number, and all other information required by the Excise Tax Act and the Input Tax Credit Information (GST/HST) Regulations. 7) Take steps to ensure that you stop collecting revenue tax on April 1, 2013, and that the final returns are prepared and submitted by April 20, 2013. Make sure: • any PST paid or payable after March 31, 2013, is remitted on a supplemental tax return; and • all supplemental returns are filed no later than August 20, 2013.

GST/PST AND HST SUMMARY

Benefits of HST 1) Contractors will experience tax savings under HST • Input Tax Credits put Island businesses on a level playing field in the region

UNDER GST/PST SYSTEM You pay

15.5 %

2) Tax savings can be used to: • Increase bottom line • Re-invest in business and enhance economy • Reduce prices

5% Government pays you back

UNDER HST SYSTEM

Reference: The Impact of Sales Tax Reform on Ontario Consumers: A First Look at the Evidence; Michael Smart.

You pay

14 % 14 % Government pays you back

Join the growing number of members of your organization who enjoy greater savings from TD Insurance on home and auto coverage. Most insurance companies offer discounts for combining home and auto policies, or your good driving record. What you may not know is that we offer these savings too, plus we offer preferred rates to members of the Canadian Institute of Quantity Surveyors. You’ll also receive our highly personalized service and great protection that suits your needs. Find out how much you could save.

Request a quote today 1-866-296-0888 Monday to Friday: 8 a.m. to 8 p.m. Saturday: 9 a.m. to 4 p.m.

ciqs.tdinsurance.com Endorsed by:

Discover how you could enjoy greater savings

The TD Insurance Meloche Monnex home and auto insurance program is underwritten by PRIMMUM INSURANCE COMPANY. The program may be distributed by Meloche Monnex Insurance and Financial Services Inc. in Quebec and by Meloche Monnex Financial Services Inc. in the rest of Canada except Ontario. Due to provincial legislation, our auto insurance program is not offered in British Columbia, Manitoba or Saskatchewan. *No purchase required. Contest organized jointly with Security National Insurance Company and open to members, employees and other eligible persons belonging to employer, professional and alumni groups which have an agreement with and are entitled to group rates from the organizers. Contest ends on October 31, 2013. Draw on November 22, 2013. One (1) prize to be won. The winner may choose between a Lexus ES 300h hybrid (approximate MSRP of $58,902 which includes freight, pre-delivery inspection, fees and applicable taxes) or $60,000 in Canadian funds. Skill-testing question required. Odds of winning depend on number of entries received. Complete contest rules available at group.tdinsurance.com/contest. ®/ The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or other countries.

04_MM8986-12_TDI.EN•ciqs (7x4.625).indd 1

12-11-19 4:28 PM

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 25

Real property contractors –

PROVINCIAL SALES TAX ACT IN BRITISH COLUMBIA

his notice provides an overview of how the provincial sales tax (PST) applies to goods purchased, brought, sent or received in BC by real property contractors and used to improve real property. This notice does not provide information related to owners of real property who purchase, bring, send or receive goods in BC for their own use, including when they hire a contractor to install those goods. For information on goods purchased in BC, see Notice 2012-011, Purchases of Tangible Personal Property (Goods) in British Columbia, and for information on goods brought, sent or received in BC, see Notice 2012-013, Tangible Personal Property (Goods) Brought Into British Columbia. For additional information on how the PST applies to real property contracts and to purchases and use of materials and equipment in BC that straddle April 1, 2013, please see PST Notice 2012010, General Transitional Rules for the Re-implementation of the Provincial Sales Tax. DEFINITIONS Real property is land and any items permanently attached to the land (buildings and structures). Goods that become permanently attached

to the land, buildings or structures on installation are called improvements to real property. Improvements to real property include integral components of buildings or land, such as windows, doors, plumbing, electrical and heating systems structures permanently affixed to land, including concrete driveways and sidewalks. They may also include very large machinery or equipment that is constructed on site, such as machinery used in sawmills, pulp mills or other industrial locations, unless the machinery or equipment is affixed machinery. Affixed machinery is machinery, equipment or apparatus that is used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of goods, or in the provision of software or a service, and is affixed to, or installed in, a building, a structure or land so that it ceases to be personal property at common law. Although affixed machinery as defined ceases to be personal property at common law upon installation (i.e. it would normally be considered to be an improvement to real property), for purposes of the PST it is, with the exceptions noted below, generally taxable as tangible personal property (goods). The following are specifically excluded

26 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

from the definition of affixed machinery so, for purposes of the PST, they are taxed as improvements to real property (see General Rule below): • machinery, equipment or apparatus that is affixed to, or installed in, a building, structure or land for the purpose of heating, air conditioning or lighting a building or structure, sewage disposal for a building or structure, or lifting persons or freight within a building or structure by elevator or escalator; or • machinery, equipment or apparatus that is: - of such a size that it must be constructed on the site where it is to be used, - by its nature or design, would normally be expected to remain, for its useful life, on the site at which it is constructed, - does not run on rails or tracks, or does not otherwise move around on or from the site at which it is constructed, and - cannot be moved from the site at which it is constructed without ♦ dismantling the machinery, equipment or apparatus, or ♦ dismantling or causing substantial damage to the building or structure to which it is affixed or in which it is installed.

Therefore, sales or leases of affixed machinery, other than the specific exceptions outlined above, are generally taxable for PST purposes as tangible personal property. More information on how PST applies to affixed machinery will be provided in the near future. You are a real property contractor if, under a contract, you construct buildings, or supply and affix or install goods that become improvements to real property or affixed machinery. This includes contractors and subcontractors in the construction industry, as well as other businesses that make improvements to real property under a contract. REAL PROPERTY CONTRACTORS AND PST General rule If you are a real property contractor, you are required to pay PST on the goods you purchase, bring, send or receive delivery of in BC for the purposes of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property, unless a specific exemption applies. As a real property contractor, you must pay PST because you are the user of the goods used to fulfill the contract. For the purposes of the PST, supplying and installing goods under a contract to improve real property is NOT a sale of those goods to your customer. Therefore, you are not eligible for the exemption for goods acquired for resale. You must pay PST regardless of whether your contract is a time and materials contract or a lump sum contract, unless a specific exemption applies. Real property contractors who sell goods at retail A person who acquires goods for the sole purpose of resale is exempt from PST. Real property contractors who also operate a retail or wholesale facility selling goods may purchase goods for resale exempt from PST. If a person acquires goods for resale and then subsequently uses the goods for another purpose, including fulfilling a contract as a real property contractor, the person using those goods is required to self-assess PST on the goods, unless a

specific exemption applies. The PST must be self-assessed by the last day of the month following the month in which the goods are first used or, if you are a PST registrant, with the return for the reporting period that includes the date the goods are first used. EXEMPTIONS FOR REAL PROPERTY CONTRACTORS Agreements that specifically require the customer to pay PST A real property contractor is exempt from the PST on goods the real property contractor purchases, brings, sends or receives delivery of in BC for the purpose of fulfilling a contract to supply and affix, or install, affixed machinery or improvements to real property where, under the terms of the contract, the goods are used such that they cease to be personal property at common law, if: • the contractor and their customer enter into an agreement that specifically states that the customer is liable for the PST on the goods, and • the agreement sets out the purchase price of the goods. There must be written evidence of the agreement that specifically states that the customer is liable for the PST on the goods. The customer must pay PST on the greater of the contractor’s purchase price of the goods and the purchase price set out in the agreement. Real property contractors who enter into agreements that specifically state that their customers are liable for the PST must be registered as PST collectors before the goods are supplied. As collectors, real property contractors must collect and remit PST to the government that their customers are required to pay, whether collected or not. For more information on PST registration, please see Bulletin PST 001, Registering to Collect Provincial Sales Tax (PST). For more information on the requirement to charge and collect PST, please see Bulletin PST 002, Charging, Collecting and Remitting PST. Contracts with persons exempt from PST A real property contractor is exempt from the PST on goods the real property contractor purchases, brings, sends or

receives delivery of in BC for the purpose of fulfilling a written contract to supply and affix, or install, affixed machinery or improvements to real property where, under the terms of the contract, the goods are used such that they cease to be personal property at common law, if the contract is with: • the Government of Canada (except where the Government of Canada has entered into an agreement with the government under which the Government of Canada has agreed to pay PST), or • a person who would be exempt from PST if they had purchased, brought, sent or received the goods instead of the contractor under: • the Provincial Sales Tax Act , or • Section 87 of the Indian Act (Canada). Documenting exemptions for real property contractors Where a real property contractor is exempt from the PST on goods in the above circumstances, the contractor may purchase the goods exempt at the time of sale, provided that the contractor provides the required information to their supplier at or before the time of sale. Where there is a specific agreement transferring liability for the PST to the customer, a contractor must provide their PST registration number or, if the real property contractor has not yet received a PST registration number, they must provide an exemption certificate. Where the contractor has entered into a written agreement with a person who is exempt from PST (as noted above), the contractor must provide their PST registration number or, if the real property contractor is not registered, an exemption certificate and a declaration completed by their customer that states the person is exempt from PST. More information about exemption certificates will be provided in the near future. TRANSITIONAL RULES PST payable on goods used by a real property contractor to improve real property on or after April 1, 2013 A real property contractor must pay PST on goods purchased or brought,

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 27

sent or received in BC prior to April 1, 2013 that are used for the purpose of fulfilling a contract under which the real property contractor is required to supply and affix, or install, affixed machinery or improvements to real property on or after April 1, 2013 such that the goods cease to be personal property at common law, unless a specific exemption applies. The PST must be paid by the last day of the month following the month in which the real property contractor uses the goods. If the contractor is a PST registrant, the PST must be paid with the return for the reporting period that includes the date the goods are first used. The amount of PST payable is calculated on the purchase price (regardless of when the consideration was paid or payable) of the goods and is reduced by the amount of: • PST otherwise paid under the Provincial Sales Tax Act, • tax paid under the Social Service Tax Act (i.e. PST paid before July 1, 2010) if the real property contractor has not obtained and is not eligible to obtain a refund, and • tax paid as the provincial portion of the HST if the real property contractor has not obtained and is not eligible to obtain a refund, rebate or credit, including input tax credits. PST payable by customers A real property contractor will be exempt from PST on goods used to supply and affix, or install, affixed machinery or improvements to real property on or after April 1, 2013 if there is a specific agreement transferring liability for the PST on those goods to the customer as set out above. As set out above, there must be written evidence of the agreement transferring liability for the PST to the customer. The PST payable by the customer is the greater of the contractor’s purchase price of the goods and the purchase price set out in the agreement. The PST will be reduced as noted above. The PST payable by the customer must be paid on or before the last day of the month after the month in which

the contractor uses the goods such that they cease to be personal property at common law, regardless of when the customer is required to pay the real property contractor under the terms of the contract. Real property contractors who enter into agreements that specifically state that their customers are liable for the PST must be registered as PST collectors before the goods are supplied. As collectors, real property contractors must collect and remit PST to the government that their customers are required to pay, whether collected or not. For more information on PST registration, please see Bulletin PST 001, Registering to Collect Provincial Sales Tax (PST). For more information on the requirement to charge and collect PST, please see Bulletin PST 002, Charging, Collecting and Remitting PST. PST payable on goods incorporated into certain residential homes that are subject to tax under the New Housing Transition and Rebate Act A person who purchased goods or brought, sent or received goods in BC that are incorporated, on or after April 1, 2013 into property that could be the subject matter of a taxable sale or taxable selfsupply under the New Housing Transition Tax and Rebate Act must pay PST on the purchase price of the goods, unless a specific exemption applies. The amount of PST payable is reduced by the amount of: • PST otherwise paid under the Provincial Sales Tax Act, • tax paid under the Social Service Tax Act (i.e. PST paid before July 1, 2010) if the person has not obtained and is not eligible to obtain a refund, and • tax paid as the provincial portion of the HST if the person has not obtained and is not eligible to obtain a refund, rebate or credit, including input tax credits. The PST must be paid by the last day of the month following the month in which the goods are incorporated into the property, or if the person is a PST registrant, with the return for the reporting period that includes the date the goods are incorporated into the property.

28 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

The PST on these goods will be eliminated on April 1, 2015 with the repeal of the New Housing Transition Tax and Rebate Act. PST payable on mobile homes affixed to real property on or after April 1, 2013 Unless a specific exemption applies, a person must pay PST on the purchase price of the mobile home if the person: • acquired or manufactured a mobile home as defined in the Excise Tax Act (Canada) before April 1, 2013, and • the mobile home is affixed to land in BC for the purpose of use and enjoyment of the mobile home as a place of residence for an individual within the meaning of Part IX of the Excise Tax Act (Canada). The amount of PST payable is reduced by the amount of: • PST otherwise paid under the Provincial Sales Tax Act, • tax paid under the Social Service Tax Act (i.e. PST paid before July 1, 2010) if the person or real property contractor has not obtained and is not eligible to obtain a refund, and • tax paid as the provincial portion of the HST if the person or real property contractor has not obtained and is not eligible to obtain a refund, rebate or credit, including input tax credits. The PST must be paid by the last day of the month following the month in which the mobile home is affixed to land in BC, or if the person is a PST registrant, with the return for the reporting period that includes the date the mobile home is affixed to land in BC. The PST on these mobile homes will be eliminated on April 1, 2015 with the repeal of the New Housing Transition Tax and Rebate Act. FURTHER INFORMATION If you have any questions, please call us toll free at 1 877 388-4440 or email your questions to CTBTaxQuestions@gov. bc.ca or visit our website gov.bc.ca/pst. The information in this notice is for your convenience and guidance and is not a replacement for the legislation. You can access the legislation and regulations on our website under Forms and Publications.

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

We are seeking a

SENIOR ASSOCIATE LEVEL PROJECT MONITOR Candidates should have a minimum of ten (10) years related experience, have an established track record in the Project Monitoring field, and be active in business development. Being a Senior Associate level position at Pelican Woodcliff, the renumeration package will include a profit share component. Future ownership/partnership opportunities are a distinct possibility for the successful candidate. Please e-mail your resume and cover letter in confidence to: ronnie@pelicanwoodcliff.com for the attention of Mr. Ronnie Mandowsky

Cost Consultants and Project Monitors

100 York Blvd., Suite 608, Richmond Hill, ON L4B 1J8 Tel 905.889.9996 www.pelicanwoodcliff.com

Spring 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 29

In Memoriam Henry Carter, PQS(F)

Diamond Velji, PQS

CIQS – Maritimes sadly announces the passing of Mr. Henry Carter, PQS(F) at the age of 78 in Halifax, Nova Scotia. Henry Carter immigrated to Canada in the late 1950s. He immediately began working as an estimator in the employ of various major contracting firms. He was accepted as a full member (now PQS) of CIQS in 1962, certificate #300. In the late 1970s, Henry joined the (then) Department of Public Works Canada in Toronto, working on projects throughout Ontario. In 1979, having moved to Halifax to accept a transfer and promotion to PWC Atlantic Region in Halifax, Henry was a founding member of The Nova Scotia Association of Quantity Surveyors (NSAQS, now CIQS-Maritimes). In the following years until retirement in 1996, Henry earned the respect and admiration of not only fellow PWC employees, but also that of major contractors and consultants who formed part of his work as Chief, Cost Planning and Estimating for PWGSC Atlantic Region. Henry served many years on the NSAQS Board of Directors as Treasurer, Secretary, Education Committee member, de facto office administrator and treasurer for three CIQS AGM organizing committees. In 1987, Henry became a CIQS Fellow, and in 1993 was awarded the CIQS Award of Merit for his contributions to the Institute. Henry will be missed by his loving wife of 43 years, Shirley, daughters Jennifer and Sarah Carter, and his extended family and friends.

The CIQS - Ontario sadly announces the passing of longstanding member, Mr. Diamond (Jim) Velji, PQS, in early December 2012 at the age of 66 in Bahrain. Jim joined the CIQS - Ontario in 1975 and obtained his PQS designation in November 1978 (Certificate # 993) after writing the CIQS examinations. Mr. Velji attended the University of Nairobi in Kenya where be obtained a B.A. in Building Economics (Quantity Surveying). After working for a couple of Chartered Quantity Surveyors in Uganda and Kenya, he immigrated to Canada in 1973, securing a position with S & F Excavating. In 1980, he was posted in Pakistan with Turner International as Chief Quantity Surveyor to build the Aga Khan Hospital and Medical College. He returned to Canada in 1987 and worked on a number of international projects, such as the New Delhi International Airport Terminal and the Mumbai International Airport Terminal. Diamond, will be missed by his loving wife Izat and family.

Connect with our advertisers Company

Page

Phone #

Website/E-mail

Altus Group

905-953-9948

www.altusgroup.com

BCIT - British Columbia Institute of Technology

866-434-1610

www.bcit.ca

BTY Group

416-596-9339

www.bty.com

CB Ross Cost Consulting

416-487-3330

www.cbross.ca

George Brown College

800-265-2002

coned.georgebrown.ca

Insite SiteWork

877-746-7483

www.insitesoftware.com

LCO Construction & Management Consultants Inc.

514-846-8914

www.lcogroup.com

Ontario General Contractors Association

905-671-3969

www.ogca.ca

Pelican Woodcliff Inc.

905-889-9996

www.pelicanwoodcliff.com

SMARTBIDNET

866-888-8538

www.smartbidnet.com

TD Insurance Meloche Monnex

866-296-0888

CIQS.Tdinsurance.com

TTcm2r Inc.

416-925-1424

www.ttcm2r.com

Vertigraph, Inc./Interworld

800-663-6001

http://www.interworldna.com/vertigraph/ siteworx_os.php

Please support these advertisers who help make Construction Economist possible. 30 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2013

making the difference

One team that’s making the difference the whole world over We’re the team behind the creation and operation of many of the world’s biggest projects, from rail and alternative energy to property and natural resources. With a network of 76 offices in 32 countries we work together, making the difference for you wherever you are. For further details of current opportunities, please contact: Our Internal Recruiter - 416-925-1424/torontohr@ttcm2r.com or visit the recruitment area on our website

Construction Economist Journal - Spring 2013

Articles inside

Industry news

In Memoriam

Education updates

CPD Corner

President’s message