Construction Economist Journal - Fall 2013

CONSTRUCTION ECONOMIST FALL 2013

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

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CONSTRUCTION ECONOMIST FALL 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

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

Features How to really put clients first. . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Executive Director Lois Metcalfe. ........................... . . . . . . execdir@ciqs.org

4 ways to counter the costs of disaster. . . . . . . . . . . . . . . . . 14

Editor Joshua Mutize, PQS.................... . . conecon@ciqs.org

Twitter IPO is prompting changes for users. . . . . . . . . . . . . 16

Translation André Bernard, ECA Send Change of Address to: Canadian Institute of Quantity Surveyors 90 Nolan Court, Unit 19, Markham, Ontario L3R 4L9

CIQS Board Chair: Mark Gardin, PQS Vice Chair and CIQS – Prairies and NWT Rep: Dave Burns, PQS Secretary/Treasurer & Past Chair: Mark Russell, PQS(F) Registrar and CIQS – Ontario Rep: Craig Bye, PQS CIQS - British Columbia Rep: Matt Weber, PQS

Does how you feel about money affect your wealth?. . . 18 September board meetings recap . . . . . . . . . . . . . . 19 Blast from the past: Reserve Fund studies. . . . . . . . 21 Lies technology tells. . . . . . . . . . . . . . . . . . . . . . 25 Woodbury furniture store’s second story going up. . 28 George Frizzell obituary. . . . . . . . . . . . . . . . . . . 30

CIQS - Maritimes Rep: David Dooks, PQS CIQS - Québec Rep: Jacques Amelin, ECA CIQS - Newfoundland and Labrador Rep: Roy Lewis, PQS(F) Education Administrator: David Lai, PQS(F)

14 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

Chair’s message. .

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Executive Director’s Message. .

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. .............Daniel Goulet 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

Editor’s Message . .

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Education Updates. .

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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®).

Chair’s Message

Engaging members

I

hope all of our readers were able to take some time away from work to enjoy the pleasurable yet short Canadian summer. In the Maritimes, we had a rather damp July but thankfully August delivered warmer and sunnier days.

The CIQS Board held extremely productive meetings in September. It was the first time the new Board met face to face and I must say I was overwhelmingly impressed by the knowledge, professionalism, and duty of care displayed by the new Board during our first meetings.

I often have joked that this year’s agenda is not exceptionally glamorous.

The excitement of a new marketing strat-

From a national perspective, one important note worth mentioning regarding the new Bylaws is the changing of some commonly used terminology. Council is now the Board, President is now Chair, Vice President is now Vice Chair, and Past President is now Past Chair. These are easy to remember, but what about the term member?

Our national Bylaws now refer to a member as an affiliate, and each paid individual is a member of an affiliate. So how do we address the member of an affiliate on the national stage? The Board has struggled with this and to date we have been using the term ‘designation

All three are vital to our Institute and our membership and each will contribute to the continued growth and success of CIQS egy, a new website, and a new strategic plan has been the focus of CIQS during the past three years. All three are vital to our Institute and our membership and each will contribute to the continued growth and success of CIQS. But this is the year of implementation and delivery - a time to roll up our sleeves and focus on completing certain initiatives – not start new ones before we can realize the success of our work during the previous three years. ‘Get’er done’ is a phrase commonly used on the east coast and this has become our current mandate. I have the upmost confidence our Board will deliver. As I outlined in my previous report, CIQS is focusing on the website and governance as the two major initiatives this year.

holder.’ Have a better suggestion? If so, please send it to us for consideration.

The important thing to remember is that you are still a member with voting rights to your affiliate.

So how will CIQS nationally engage our designation holders? Is there a sense the designation holders (you) have even less of a say now? Do you feel CIQS is moving in the right direction or are there other priorities that should take precedence over the current agenda? Believe it or not, these are the same questions we are asking ourselves at the national Board level.

If you want to have more of a say, then I encourage and challenge the designation holders to become more engaged and active by using this magazine

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

Mark Gardin, PQS

as a platform to promote ideas and discussions. There are countless topics to write about whether it is project related, an industry issue, or simply a topic about the profession of quantity surveying in Canada or CIQS as the national association.

You do not need to be Margaret Atwood or Andrew Coyne to write an article and there is no word limit. Not feeling up to an article? Perhaps a letter to the editor might be more manageable.

And if writing an article for a magazine seems too daunting, we are now active in social media where a brief statement or question on LinkedIn may kick start the discussion process.

Sharing our thoughts, stories, or ideas is fundamental and essential if we want to grow as a profession and organization. Knowledge is power but if no one is sharing any, we run the risk of become stagnant and eventually unimportant.

And becoming an engaged member has it benefits other than gaining knowledge. As a past CPD Chair, I always take the opportunity to promote CPD, and being part of the discussion means earning CPD points in a new way.

In closing, as we are well into a year of governance transition, now more than ever, it is crucial for open and effective communication from the national association level all the way to the individual member level. Please take some time to reflect on where you want to be as a professional and what you expect from your professional association, and then please communicate it in a meaningful way.

Message du Président du Conseil

Amener les membres à s’engager

J

‘espère que tous nos lecteurs eurent la possibilité de quitter le travail pour profiter de l’agréable mais court été canadien. Dans les Maritimes, le mois de juillet fut plutôt pluvieux, mais le mois d’août nous apporta des journées plus chaudes et ensoleillées.

Le conseil de l’ICÉC a tenu des rencontres très productives en septembre.

C’était la première fois que le nouvel exécutif se rencontrait face à face et je dois vous avouer que je fus immensément impressionné par le niveau de connaissances, de professionnalisme et de devoir de diligence que démontrèrent les membres du nouvel exécutif durant ces premières rencontres.

J’ai souvent fait des plaisanteries disant que le programme de cette année n’est pas particulièrement séduisant.

L’excitation d’une nouvelle stratégie de marketing, d’un nouveau site Web, d’un nouveau plan stratégique fut le centre d’intérêt de l’ICÉC durant les trois dernières années. Les trois ont une importance vitale pour l’Institut et ses membres et chacun contribuera à la poursuite de la croissance et du succès de l’ICÉC. Mais cette année est celle de la mise en service et de la livraison – c’est le temps de se remonter les manches et de se concentrer à terminer certaines initiatives – pas d’en démarrer de nouvelles avant d’avoir réalisé le succès du travail entrepris au cours des trois dernières années.

‘Get ‘er done’ est la phrase communément utilisée sur la côte est et elle sera la nôtre durant notre présent mandat. J’ai entièrement confiance que notre conseil livrera la marchandise. Comme je l’ai dit dans mon dernier rapport, l’ICÉC se concentre sur le site Web et sur la gouvernance, les deux principales initiatives de cette année.

D’un point de vue national, il importe de mentionner concernant les nouveaux

règlements et le changement dans certaines terminologies habituellement utilisées : «En anglais, il a été décidé de changer le mot «Council» pour le mot «Board», mais cette dénomination demeurera la même en français («conseil») puisque le changement ne s’applique pas. Le président devient président du conseil, le vice-président devient viceprésident du conseil et le président sortant devient président du conseil sortant.

Ce sera facile de s’en rappeler, mais qu’en est-il du terme «membre»?

Nos règlements nationaux réfèrent maintenant au membre en tant qu’affilié, et chaque cotisant individuel est membre d’un affilié. Alors comment nous adressons-nous au membre d’un affilié sur le plan national? L’exécutif s’est débattu avec ces terminologies et nous sommes arrivés à l’utilisation du terme «titulaire de désignation». Vous avez une meilleure suggestion? Dans l’affirmatif, n’hésitez pas à nous la transmettre pour considération. La chose importante à retenir est que vous demeurez un membre avec droit de votre dans votre affiliée.

Alors, comment l’ICÉC engagera-t-il ses titulaires de désignations professionnelles sur le plan national? Avez-vous l’impression que vous, à titre de titulaire d’une désignation professionnelle avez moins à dire maintenant? Avez-vous le sentiment que l’ICÉC avance dans la bonne direction ou est-ce que d’autres priorités devraient avoir préséance sur l’actuel plan de travail? Croyez-le ou non, ce sont ces mêmes questions que nous nous posons au niveau de l’exécutif.

Si vous avez davantage à dire, alors j’encourage et défie les porteurs de désignation de devenir plus engagés et actifs en utilisant le magazine comme une plateforme pour la promotion des idées et des discussions. Il y a un nombre illimité de sujets sur lesquels écrire,

que ce soit lié à des projets, un sujet sur l’industrie, ou simplement un sujet lié à la profession d’économiste en construction au Canada ou à l’ICÉC comme association nationale.

Vous n’avez pas besoin d’être Margaret Atwood ou Andrew Coyne pour écrire un article et il n’y a pas de limite du nombre de mots. Écrire un article ne vous tente pas? Peut-être une lettre à l’éditeur serait davantage possible. Et si écrire un article pour le magazine vous semble trop intimidant, nous sommes maintenant présents dans les média sociaux où un bref énoncé ou une question sur LinkedIn peut démarrer un processus de discussion.

Le partage de nos idées, de nos histoires ou de nos idées est fondamental et essentiel si nous voulons croître comme profession et comme organisation. La connaissance est le pouvoir, mais si on ne la partage pas, nous courons le risque de stagnation et éventuellement de d’insignifiance.

Et devenir un membre impliqué procure des bénéfices autres que d’acquérir de la connaissance. En tant qu’ancien responsable du Développement professionnel continu, je saisis toujours l’opportunité de promouvoir le CPD, et être impliqué dans la discussion permet de gagner des points CPD d’une nouvelle façon.

En terminant, comme nous sommes bien engagés dans une année de transition en gouvernance, maintenant plus que jamais, il est crucial de faire preuve de communications ouvertes et efficaces depuis le niveau national de l’association jusqu’au niveau du membre individuel.

Je vous prie donc de prendre un peu de temps pour réfléchir à ce que vous voulez atteindre comme professionnel et ce que vous attendez de votre association professionnelle, de grâce, communiquez-le d’une façon significative.

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

Executive Director’s Message

Office reno now complete

O

ur renovations are now complete The CIQS office on Nolan Court in Markham has undergone a renovation this summer and I am pleased to report the renovation is now complete. It was a challenge during the summer to continue working while they were completing the renovation, however, I must say it was well worth the inconvenience. In addition to freshening up the space, we have improved the audio visual for our meetings and seminars, added a galley kitchen in the boardroom, made the boardroom larger

and added a new office for future staff.

Special thanks to Ian Duncan, David Lai and Chris Court for their assistance during the renovation.

Our new book entitled Smart Economics in the Development of Real Estate has just arrived from the printers (see advertisement on page 20). I think this book may be our best seller, appealing to students studying development economics as well as seasoned real estate professionals.

Thanks to Jim Cuthbert, PQS(F) for authoring the book and David Lai, PQS(F) for editing same. To order your

Lois Metcalfe

copy please visit our online store (member’s should log in to obtain discounted pricing).

Construct Canada is celebrating 25 years of building this year offering more exhibits, special features and enlightening seminars and networking opportunities. CIQS will be exhibiting at the show again this year which will take place December 4-6, 2013 at the Metro Toronto Convention Centre, South Building. For your free pass please visit www.constructcanada.com.

We are in Booth # 543 – drop by and see us!

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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.

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6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2013

12-11-19 4:28 PM

Editor’s Message

Joshua Mutize, PQS

F

Manitoba’s minimum wage increases to $10.45

or my message this issue, I thought I would pass along important information pertaining to wages in Manitoba taken from a recent press release. Effective October 1, 2013, Manitoba’s minimum hourly wage jumped 20 cents from $10.25 to $10.45. This increase was announced by the Manitoba government in the 2013 provincial budget.

Background With this increase, Manitoba now has the highest provincial minimum wage in Canada, despite the Government of Manitoba’s continued claims that Manitobans enjoy the lowest cost of living in the country. RCC had strongly urged the Manitoba government against further increases to Manitoba’s minimum wage, stating our support for the Manitoba employer communities’ position of 30 cents over three years beginning in 2010. We will continue to strongly oppose politically motivated increases to the minimum wage in Manitoba and across the country.

Do employers need to give employees pay raises?

Employers decide if and when employees receive pay raises. There is no requirement for employers to increase employees’ wages, regardless of how long employees work for them.

Employees must be paid at least minimum wage.

Must everyone earn at least minimum wage?

Yes, all employees must receive minimum wage unless they are not covered by provincial employment standards or are

excluded from the legislation. (Excluded employees are usually those working in domestic service for less than 12 hours a week, or those in a federal or provincial government-sponsored training program. For more information on employees in domestic service or nannies, see the Domestic workers and live-in nannies and Who is covered by Employment Standards pages.)

Does minimum wage apply in construction?

The minimum wage applies in residential construction and building maintenance.

There are separate minimum wage rules for the heavy construction sector and the industrial, commercial and institutional (ICI) sectors of the construction industry.

More information on the construction industry can be found on these pages: Construction industry, Heavy wage schedule and ICI wage schedule.

Does minimum wage apply to students and part-time employees?

The minimum wage applies equally to all employees regardless of age or the number of hours they work. There are restrictions on the type of work people under 18 years of age can do. See the Young employees page for more information.

Does minimum wage apply to employees paid by incentive?

Yes, employees who are paid incentives, like commission salespeople or flat rate mechanics, must earn at least minimum wage in each pay period. Employers must top up, or add wages, when an employee has not earned at least minimum wage in each pay period.

For more information contact Employment Standards: Phone: 204-945-3352; or toll free in Canada 1-800-821-4307 Fax: 204-948-3046 E-mail: employmentstandards@gov.mb.ca Website: www.manitoba.ca/labour/standards

Are employees who are paid minimum wage entitled to overtime?

Employees who work overtime are entitled to be paid at 1 ½ times their regular wages for all overtime hours worked. More information on calculating overtime can be found on the Overtime page.

How often must employees be paid?

Employees must be paid at least twice a month and within 10 business days of the end of a pay period.

Must the length of shifts be at least a certain amount of time?

No, employers control schedules and can set shifts that are best for their businesses. Sometimes very short shifts are needed. Once employees report to work, there are some protections for cancelling or shortening shifts. See the Wages for reporting for work page for more details.

Can employers deduct the costs of employees’ room and meals from wages?

Yes, the cost for room and meals can be deducted if employees actually receive the meals and occupy the rooms. These deductions cannot take an employee below minimum wage in a pay period by more than $1 for each meal and $7 per week for the room. More information can be found on the Deductions page.

This is a general overview and the information used is subject to change.

For detailed information, please refer to current legislation including The Employment Standards Code and The Worker Recruitment and Protection Act, or contact Employment Standards to ask for advice.

By Lanny McInnes and Government of Manitoba’s report on minimum wage.

Director, Government Relations and Membership Services − Manitoba, Saskatchewan

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

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Education Updates

David Lai, PQS (F)

T

72.4% pass rate for May 2013 CIQS Exams

he following is the first Education Update for 2013/2014: The final result of the May 2013 CIQS Examinations showed a 72.4% pass rate compared to a 27.6% failure rate (including noshows). While this result is within our average range of pass/fail, it would appear that some candidates attempting the examinations are ill prepared. This is evident in the results of several subjects – many candidates got high marks while those who failed got very low marks.

At the time of writing this article, the registration for the November 2013 examination session includes 25 candidates in 17 subjects – 13 Architectural, two Mechanical and two Electrical.

It appears that the members who are doing their TPE diaries are adjusting to the new format that came into effect in April 2013.

The revision of the English version of the Career Booklet is now completed and is now available on our website.

The French version is currently being

translated and will be available shortly.

A CIQS – Ontario (GTA Chapter) member, Mr. Kevin Alexander PQS, has agreed to represent us on the committee dealing with Memorandum of Interest with Seneca College.

The review of the book titled Smart Economics in the Development of Real Estate by Mr. Jim Cuthbert PQS is completed and is now available in our online store. This book will be added to the reading list for subject C309 Development Economics.

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Fall 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 9

How to REALLY put

Move beyond the cliché and change y While we pay lip service to the ide a of ‘put ting the customer first,’ few companies truly do. Often, we are so concerned with bottom lines, profit margins and paying bills that we instinctively put ourselves first. As counterintuitive as it may seem, Joseph Callaway, who, along with his wife, JoAnn, is the author of the book Clients First: The Two Word Miracle (Wiley, October 2012, ISBN: 978-1-1184127-7-0, $21.95), says that anxious sense of self-preservation may be exactly what is holding you back.

“When you really put the customer first, and put your own needs second, other things naturally fall into place,” notes Callaway. “Tough decisions practically make themselves.

Since you are no longer pitting the client’s needs against your own, relationships are based on transparency and honesty.

People like and trust you and referrals flow freely.”

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

Step One: Make the commitment ‘Commitment’ can be a scary word. It implies that you have accepted responsibility, that you are ‘locked in,’ and (sometimes) that you have given up an aspect of your freedom. For those reasons, most commitments should not be taken lightly. But, here is the good news: Because sincere commitments require you to step up and take a stand, they often lead to great things.

HOW-TO HINT: Give yourself a week to think it through before you decide. A no is better than a quick yes and a shallow commitment.

Ask yourself: What will my life really look like when I put customers first?

Will I have to work later, take client calls at home, or have conversations that veer into ‘personal’ territory? If you do not like what you envision, do not make the commitment.

clients first

your business forever Step Two: Speak the commitment

Step Three: Keep the commitment

Making the commitment will not ultimately mean much if you do not share your intentions with others.

Speaking your commitment gives you strength, and is instrumental in affirming (and reaffirming) to yourself what your goals are and why.

“Clients First is something you must consciously recommit to every day,” Callaway affirms. “Remember, it is usually not the big things that trip us up; it is the little steps we miss. One day, you let an aggravating client get to you, for example, and the next, you are pre-judging a walk-in. Eventually, keeping your commitment to Clients First becomes easier. It is a habit that will become hardwired into your life.

By that point, the benefits, rewards, satisfaction and success will be rolling in – and you will be proud of the person you have become.”

HOW-TO HINT: If you get a negative reaction when you speak your commitment, channel David Letterman. The late-night TV host often reads jokes from index cards. If one happens to fall flat, he simply flicks the card away.

This flicking gesture protects him from rejection. If someone dismisses your spoken commitment (or worse, mocks it), make a flicking gesture and move on.

HOW-TO HINT: Remember the Napoleon Hill story from his classic Think and Grow Rich. A miner worked a claim for years before eventually giving up and going back home. A few years later an amateur visiting the area found a pickax and gave a promising wall a try. In less than an hour, he discovered one of the West’s richest strikes. Do not stop Three Feet from Gold!

Fall 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11

Step Four: Get yourself out of the way

Step Six: Put your faith in others

Step Eight: Let the work be the reward

When it comes to being successful, having a healthy ego can be a blessing and a curse. Yes, you need a strong sense of self in order to avoid being trampled on and marginalized by competitors and by clients. But, when you start to believe that winning, recognition, and accolades are ‘the point’ of what you do, you have veered off onto a destructive path.

According to Callaway, this has two meanings: serving others and then letting others serve you. Serving others means separating the service you render from the paycheck you receive. Do not give your services away for free; just make sure that growing your bank account is not your primary motivation. In other words, do your job because you genuinely want to help your clients, and do not worry about what you will get in return. (You will probably find that your clients feel just as strongly about compensating you fairly!)

In the real world (and a tough economy), you cannot always follow the popular graduation day advice and ‘do what you love.’ What you can do is choose to take pride in your work. When you consciously decide to put forth your best efforts, you will experience greater rewards and you will get better at what you do!

“Your job is to be a champion for your clients, to solve their problems and find them satisfying solutions,” says Callaway.

“It is not to be the most important person in the room or to put others down.

When you take care of your clients first and foremost, they will take care of you through their loyalty and appreciation.”

HOW-TO HINT: Notice how often you bring the story around to yourself. Stop doing that. Many people think building rapport is a matter of finding a common interest. They then dominate the common interest discussion by talking about themselves. Don’t.

This is a form of arrogance and it takes your focus off the client.

Step Five: Set the monkey down Is there a monkey riding your back in the form of responsibility and pressure? If you are like most people, you probably feel burdened with a myriad of worries, fears and obligations. You assume that ‘it is all up to me,’ and you might even lie awake at night fretting over what is not right and what could go wrong. However, if you want to successfully care for your clients, you cannot be expending the majority of your mental energy on yourself.

HOW-TO HINT: Every time you find yourself fretting, do something for a client. Spend an hour solving a client problem you have been avoiding. Connect one client to another who might be able to help him. Email him a link to an article you know would interest him. Worry thrives when you procrastinate and hand wring. Action is the antidote, so do something to back up your commitment to your clients.

The second aspect of putting your faith in others, says Callaway, is allowing them to help you by delegating tasks or leveraging others’ talents. No matter how good you are, you cannot do it all.

“When you trust others and give them the freedom they need to do their jobs, you will usually be pleased with the results,” he adds.

HOW-TO HINT: Practice going first. The next time you find yourself in a position to serve someone – a boss, an employee, a client – take the leap. Do not wait for them to do something for you. Do not think about what you are going to get in return. Do not ask yourself if the person ‘deserves’ it. Going first is a way of putting your faith into action. Your faith will be repaid.

Step Seven: Trust the truth If someone accused you of not being honest, you would probably react with something like: “How can you even ask that? Of course, I am honest!” By most people’s standards, you probably are.

But, it is also likely that you are not being completely authentic in the way you handle relationships and do business.

HOW-TO HINT: You know that thing you have been wanting to say for a long time? Go ahead and say it. Do not worry about the fallout.

Bravely take the leap. You will find that most people want the truth. Give it to them and you will be joined together in a bond that never betrays.

12 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2013

HOW-TO HINT: At least once a year, do something that will help you get better at your job. Maybe it is going to a seminar. Maybe it is asking the client how you can serve him better.

Maybe it is shutting down your email so you can better concentrate on the task at hand. The better you get at what you do, the more rewarding it will be.

Step Nine: Learn to like people Even if you already consider yourself to be a people person, chances are you still need to learn to like them more. Do you see clients as business opportunities and sources of income, or do you see them as human beings with likes, preferences, quirks and stories? To truly put clients first, your number one goal at each meeting should be to invite them within arms’ length and make them less of a stranger.

“People want to do business with individuals they like – and they like people who like them!” Callaway points out.

HOW-TO HINT: Every time you meet with a client, ask at least one question that has nothing to do with business. Ask about their kids or their favorite food, movie, or vintage car. The conversation will likely develop in a surprising direction. As you hear their stories and get to know their joys and sorrows, you will start liking them. You will also find it more natural to put them first as clients.

Step Ten: Turn it around You, not the customer, are the expert on your business. But, that does not mean that yours is the only opinion that matters.

You need to turn your viewpoint around and make a sincere effort to see yourself and your business as your client does.

HOW-TO HINT: Call up ex-clients and ask how they see your business. Assure them upfront that your goal is not to win them back, but rather to uncover the truth about how you are perceived and what the customer really wanted from you.

If you are willing to do this (and make no mistake, it is hard), you will learn a lot about what needs to change.

Step Eleven: Give to get We have all heard the expression, “The more you give, the more you get.” While we understand its meaning when it comes to things like love, smiles and kindness, how does it relate to business? Well, you can give your clients honesty, competence, and care, and hope to get those things back. But, if you give away your expertise, time, energy, and (gasp!) money, won’t you go broke?

“Not necessarily,” says Callaway. “I remember being very apprehensive about donating a large sum of money to build a Habitat for Humanity house as a Christmas gift for our clients. I thought I would never see that money again.

In the years since, I have learned that new clients chose us – and even that a bank gave us all of their foreclosures to sell – because they had learned of that donation. Now, you might not always give and get on such a large scale. But the principle works for all amounts of money, and it also works when you are giving over-and-beyond service.

“Understand that giving to get is not like a financial transaction where you give and get right there and then,” Callaway adds. “There is no up-front agreement on what you will receive or when you will receive it. It may take time. But, rest assured, whatever you give will come back to you with interest.”

HOW-TO HINT: Look for something to give away.

(And don’t be cheap about it!)

Whether you give free popcorn to moviegoers or a free grooming to pet boarding clients or a gorgeous framed print to your interior design clients, you make them feel special.

This will keep them coming back.

“As you are implementing each step, remember that Clients First – like life itself – is not so much a destination as it is a journey,” Callaway concludes. “If you commit to it, Clients First is a path you will be traveling for the rest of your life.

It will fill you with pride, clarify your perspective, and promote your business’s prosperity. Most of all, your clients will love you for it – and you will love them!”

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Fall 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13

By Lucien Canton

Editor’s Note: The Province of Alberta was hit hard by flooding this summer. In recent years, parts of Saskatchewan and Manitoba were also devastated by floodwaters. Recently, much of the Town of Lac-Megantic, Quebec was leveled after a derailed train carrying crude oil exploded. In light of these tragic events, we felt this article was particularly appropriate.

F

ollowing the Northridge Earthquake in 1994 many businesses that had survived the temblor relatively unscathed suddenly found their revenues declining. For a number of years prior, the region (30 miles northwest of Los Angeles) had been experiencing a minor population exodus as the aerospace industry declined in response to lower government spending. Many people who had lost their jobs and were close to retirement saw the earthquake as the last straw and moved away. The availability of housing attracted a new wave of immigration consisting largely of Korean and Latin American families. Companies that failed to recognize and adapt to the new demographic went out of business.

Why do so many businesses fail after disaster? The answer often lies in a failure to understand the true costs of the disaster.

Disasters are complex and there are many levels of concern that could affect a business. The most obvious is the physical damage produced by

the earthquake. One would think that this is both easy to identify and quick to resolve. However, many businesses fail because they either did not carry sufficient insurance or misunderstood the coverage they did have, severely limiting their resources for reconstruction. There is also an assumption that needed resources are available to rebuild. However, damaged infrastructure that affects deliveries and an increased demand for building supplies and contractor services can create delays that prevent timely business resumption.

The physical damage caused by disaster is not the only source of loss. Businesses frequently overlook a hidden financial side to disaster losses. Some of these are obvious, such as the need to pay overtime for additional work by employees to restore facilities or reduce work backlog. Others sources of financial loss can be far more subtle. For example, failure to pay a supplier’s bill on time can result in a service charge. Failure to meet the terms of a client contract might result in penalties.

The single biggest mistake, however, is looking solely at the business and not being aware of what is happening in the

14 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2013

larger community. There are three main areas that are frequently overlooked: What has happened to community infrastructure?

How bad is the damage? Are transportation corridors closed or damaged, and if they are closed, for how long? A business may survive but if it depends on the delivery of goods, either from suppliers or to customers, damaged transportation infrastructure will have a direct impact on the company’s recovery. Long-term utility outages will also affect business resumption, particularly if the business has not arranged for offsite backups of critical files and records or relies on Voice over Internet Protocol (VOIP) and Private Branch Exchange (PBX) systems.

What is the impact on your customer base?

Is the demand for services likely to increase, decrease or stay the same? Is there potential for generating additional business? Commercial linen companies serving the hospitality industry

will frequently see a drop in demand while those servicing hospitals see an increase. Failure to adapt to these changing demands might result in a competitor taking over the client and experience suggests that once lost, these customers are seldom regained.

What is the impact on your labour pool?

Are employees likely to remain or will they move out of the area? Will employees leave for higher wages in other communities or with competitors?

Will there be large-scale evacuations as was seen in New Orleans after Hurricane Katrina? This resulted in a labor shortage that was exacerbated by extended unemployment benefits and government assistance.

While each disaster is unique, there are four common ways that one can avoid many of the pitfalls that are associated with them:

cept delays or inconveniences if they know about them and are not taken by surprise.

4

Pay attention to what is going on in the community. Disasters do not create social problems. They take problems that were already there and make them worse. A demographic shift had been going on in Northridge for several years before the earthquake; the disaster accelerated the process.

One of the keys to surviving a disaster is to know its true cost. This cost is not only the physical damage or temporary loss of business; it also includes intangible costs caused by the longrange impacts it has on the affected community. Recognizing these impacts and adapting to them is the only way to ensure solid business resumption.

ABOUT THE AUTHOR: Lucien G. Canton, CEM is a consultant specializing in preparing managers to lead better in crisis by understanding the human factors often overlooked in crisis planning. A popular speaker and lecturer, he is the author of the bestselling Emergency Management: Concepts and Strategies for Effective Programs.

For more information, visit www.luciencanton.com, or email Info@luciencanton.com.

1

Plan for adequate financial reserves. This is not always easy, particularly for small businesses, but it is critical in dealing with disaster.

Review insurance coverage annually and understand what is covered and what is not. Know the process and requirements for filing a claim and get emergency contact numbers.

2

Prioritize employee welfare. Develop people-focused plans that not only center on managers and key employees, but consider families as well. Employees are more apt to remain on the job if they know their families are safe. Keep the lines of communication open with employees during the crisis. Rumours about the business closing or not being able to meet payroll can heighten anxiety and cause employees to seek other jobs.

3

Manage customer expectations.

Open lines of communications as early as possible and share your plans with them. Customers can ac-

Consistent

Bankable

Reliable

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Candidates must have:Relevant Experience in the construction industry Strong communications 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 resume:By email: mail@cbross.ca By fax: 416-487-3017 Only select candidates whose resumes best match our requirements will be contacted.

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

Twitter IPO is prompting changes for users Social media strategist shares pros and cons of four new measures

By Marsha Friedman

A

bout two months ago, our lead social media strategist at EMSI Public Relations started noticing interesting changes involving the Twitter accounts we manage for clients.

Tools were suddenly disabled. Twitter’s technical support, which had not been good, improved.

So, when news broke on September 24 that Twitter had already formally taken steps toward going public back in midJuly, Jeni Hinojosa was not surprised.

“The changes appear designed to make Twitter more appealing to investors when the initial public offering is finally made,” Jeni says.

“In some ways, they are also improving the experience for users. But in other ways, some users will be disappointed.’’

Overall, Jeni says, Twitter will likely remain one of the most effective social media platforms for connecting with both individuals and large corporations. That is because it is less personal than, say, Facebook, and – this is the biggie – it is quick and easy to have a conversation with posts of 140 characters or less.

What are some of the changes Jeni has seen on Twitter and how might they affect you? She shares four:

1]

No more ‘automatic follow-backs’ means the size of your following will grow more slowly. Some applications, such as HootSuite and ManageFlitter, allowed Twitter users to set up their accounts to automatically become a follower of anyone who first followed them. That allowed audiences to quickly swell – but it also removed human oversight. The result: some of your followers, and some accounts you followed, would be fake, inactive or otherwise non-genuine connections.

“I believe Twitter’s shutting down the ways huge audiences of fakes can grow so that they can be properly valued for the IPO,” Jeni says.

While that is generally good for users, people who want to build a large following quickly may be disappointed.

One such group is authors trying to get literary agents or book deals, she says.

“Agents and publishers want authors who have a strong base of potential fans, and one way to demonstrate that is to get big followings on social media,” Jeni says. “Authors may be unhappy that their following grows more slowly, but it is better in the long run – it is not hard to tell when someone has a mostly fake following.”

2]

You can no longer remove fake or unwanted followers en masse. Twitter enforces limits on how many accounts you can proactively follow, so it is important to periodically clear out the fakes, inactive accounts and other unhelpful followers.

SocialOomph and Manage Flitter allowed users to detect and delete these followers in large bunches, which saved time, Jeni says.

“That function is no longer available,” she says.

“Now, you have to go through your followers one by one to delete them.”

3]

Improved technical support – in some ways. Before the recent changes, if you ran into a problem with your Twitter account, you went to a ‘help’ web page, filled out a form describing the problem and submitted it. Then you had to watch your email for a confirmation and reply to the confirmation within 48 hours in order for your ‘case’ to move forward.

“While that pesky process still exists, the ‘help’ page now offers troubleshooting, which makes it easier to fix

Did you know CIQS is on Twitter?

Follow us - @CIQS_Official 16 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2013

While that is generally good for users, people who want to build a large following quickly may be disappointed. some problems,” Jeni says.

The downside? You are forced to click through multiple steps and take certain actions before Twitter agrees that you have a problem and allows you to send a request for support.

The help page is support.twitter.com.

4]

More advertisements. As Facebook did when it went public, Twitter is now offering users the option to pay for their posts to achieve more

visibility. So now, you may find a post from an account that you do not follow appearing at the top of your news feed.

“Most recently, I have been getting posts about McDonald’s new Mighty Wings,” Jeni says. “It is mildly annoying if it is something you have no interest in, but it can also get confusing. You may see it and think, ‘Did I follow McDonald’s?’ and check to see whether you did or not, especially if you are close to your limit on followers.”

About the author Marsha Friedman is a 23year veteran of the public relations industry. She is the CEO of EMSI Public Relations (www.emsincorporated.com), a national firm that provides PR strategy and publicity services to businesses, professional firms, entertainers and authors. Marsha is the author of Celebritize Yourself and she can also be heard weekly on her Blog Talk Radio Show, EMSI’s PR Insider every Thursday at 3:00 PM EST. Follow her on Twitter: @marshafriedman.

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Fall 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 17

Best-selling business author offers three tips for changing your attitude

A

lthough we live in the richest and most advanced society the world has ever known, many of us say we need more money in order to be happy, notes best-selling business book author Doug Vermeeren.

“Even some of those in the top percentile of earners often feel like they do not have enough money,” says Vermeeren, (www.DouglasVermeeren.com), an international speaker who consults with celebrities, business executives and professional athletes.

“The math is simple - more money does not equal more happiness. It is our attitude toward money, not the amount, which influences our happiness the most.”

Happiness researchers Elizabeth Dunn and Michael Norton, professors at the Harvard Business School, recently published research indicating that it is not money that makes people happy, nor the things people buy with it. Rather, it is the experiences one has that ultimately account for happiness.

“How you experience your money on a day-to-day basis is what matters,” Vermeeren says. “If the software running in your brain is constantly reinforcing the message, ‘it is not enough,’ then that is likely how you will see yourself and experience your life – as ‘not enough.’ ” Vermeeren reviews the three fallacies of abundance as it relates to happiness: • We are all entitled to a certain amount of wealth: the feeling that we deserve or are owed a certain amount of wealth will always make us unhappy with whatever we have. While we are entitled to certain human rights, those do not include a winning lottery ticket. In reality, we are not owed any amount of abundance and, in fact, should count ourselves lucky if we are able to meet our basic needs; many in the world are not. More of us, however, would be happier simply appreciating what we have.

• The result of our labours is money: money is a means to an end, not an end in itself. This can be a challenge to keep in mind since so much of our lives are spent in the pursuit of money.

We work and go to school to support ourselves and our families. We see things we want, and we know we need more money for them. Study after study shows, however, that what really makes us happy is what we do and who we do it with, and not how much money we spend.

• We will be happiest when we finally reach our goal: we are happiest when we are progressing toward a goal.

When we lose sight of our goal, veer off the path toward our goal, and even achieve our goal, we are less happy.

Rather than setting one goal and deciding you will be happy when you meet it, you will be most happy if you continually set goals and relish your journey toward them.

About the author Doug Vermeeren is an internationally renowned public speaker, author, movie producer and director. His life coaching strategies help those from all walks of life, with clients including business executives, celebrities, professional athletes and more. Throughout the last decade, Vermeeren has conducted extensive first hand research into the lives of more than 400 of the world’s top contemporary achievers, making him a sought-after commentator on news outlets including ABC, FOX, CNN and more. He has written three titles contributing to Guerilla Marketing, the best-selling business series in publishing, which is included reading in the Harvard Business School. His documentaries include the award-winning film, The Opus, which has been published by Random House as a book in 23 countries. Vermeeren’s latest film, The Gratitude Experiment, has received critical acclaim.

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

By Mark Gardin, PQS CIQS Chair

T

he website and new governance model dominated the September Board meetings.

Equally they are at the top of the Board’s priority list and both are massive undertakings that seem to spawn new challenges as we collaboratively work our way through them step by step.

The website continues to see improvements. A Password Reset function has now been added to the site to allow members to reset their forgotten password without having to use chat support or have administration manually change it. It was determined through support records that forgot password was the single biggest issue with our members when logging into the Member’s Only site. With the automation of the password reset, savings financially and in time are now realized.

The second biggest issue that our members experienced came from browser compatibility. With any technology, everyone expects to have the latest and greatest thing available on the market place. Would you buy a tube TV when there are high definition flat screens available? Same applied to our website.

Our website was designed for the newest browsers (Internet Explorer 10+) because the programming language used

to make the website work with the newer browsers is not the same language used for Internet Explorers 7, 8 and 9.

When the website was launched (coincidentally during membership renewals), we quickly discovered a fair number of our members were using the older browsers. Although CIQS continues to encourage members to upgrade to the newest browser available, we understand there are circumstances where this is not possible. To accommodate all members, our website provider is now implementing the necessary architecture to make our website backward compatible with IE7+.

With these two issues soon behind us, we can really start to focus on the actual content of the site and begin maintaining the site rather than building it. Attention will be placed on finalizing the translations and French portions of the site, ensuring online payment processes are seamless, and tidying up the membership directory and CPD areas of the site.

The Board also agreed in principal to seek a part-time bilingual web administrator to do much of the maintenance. CIQS administration are trained and capable to do much of the maintenance but our resources should not be consumed by maintaining the website if there are knowledgeable outside

resources available at a reasonable cost.

As the Board has quickly realized, the website has become the catalyst for most of what CIQS does. Between new member applications, membership renewals, online exam registrations, online purchases, CPD, notices and communications, membership directory, virtual boardroom, policies and guidelines, and much more, the website is now our biggest portal to our membership and the common public.

The Board has also made further strides on the CIQS governance front.

Having the new Bylaws approved by the membership at the Montreal AGM was only the first step for CIQS to implement the new governance model.

Following the AGM, CIQS submitted the new Bylaws under formal application to the Federal Government, and I am pleased to announce the approval of our Bylaws was received in July. With this acceptance, CIQS has avoided the threat that existed of dissolving in 2014 under the terms set by the new Not-for-Profit Act. Now that the Bylaws are official and active, several other documents must be updated or developed and incorporated into the new governance model. CIQS/ Member (Affiliate) Agreements require updating, Rules and Regulations require

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

With these two issues soon behind us, we can really start to focus on the actual content of the site and begin maintaining the site rather than building it. updating, and the Nomination Process and Forms need to be developed.

The Board discussed the new format for the annual CIQS Congress to be held in Calgary in 2014. The first change to remember about the annual event is that it is no longer called an Annual General Meeting.

One issue that arose through the discussions was the timing of electing a new Vice Chair. Under the old Bylaws, the Vice Chair was nominated by Council before the AGM. With the new nomination process in play, and the possibility of new nominations each year, the Board decided that the Vice Chair position should be deemed an ex officio position and not represent the affiliate member.

Under this amendment, our current Vice Chair and current CIQS Prairies Representative, Dave Burns, will no longer be the CIQS Prairies Representative and CIQS Prairies will nominate a new Representative to sit on the Board for the remaining 2013/2014 term.

During the summer, our Legal Committee in cooperation with our lawyer Nick Pasquino, developed a draft CIQS/ Member (Affiliate) Agreement. In September, the Board reviewed the agreement in detail. For those not aware, CIQS and the Affiliate have agreements in place but some of the language needed to be changed to reflect the new Bylaws language. CIQS will be issuing the new member agreements to each affiliate in

the coming weeks for review and signing.

CIQS Legal Committee also drafted the new Rules and Regulations (now be referred to as National Standards) and the Nomination Process. The Board had limited time and was unable to review these documents in September but has set aside time during the December meetings to complete an in-depth review.

In other CIQS business, the Board agreed to investigate opportunities to become more involved with similar associations within North American with particular discussion surrounding participation in ASTM with regards to the on-going development of the Uniformat II system. There will be more to report following the December meetings.

The Social Media committee discussed our growing activity through LinkedIn and the possibility of representation from each affiliate. The Education Committee continues to be committed to the development of the Heavy Civil syllabus and new CPD Guidelines are in the works to help members better understand the CPD program.

CIQS announces the publication of Smart Economics in the Development of Real Estate

By Jim Cuthbert, PQS(F)

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“Smart Economics in the Development of Real Estate” has a unique question and answer format, which is both explicit, and rational, and demonstrates how to “crunch the numbers” on Development Projects. Fifteen case studies, all based on actual developments, cover residential projects, both for sales and for rent, commercial projects, and residential scimonocE tramS sub-division site servicing. Also covered Lease Studies, and Life Cycle tnempoare leveBuild D eht nversus i Costing applications, as well as the methodology etatsE laeR fofor both Feasibility and Market Studies. ni scimonocE tramS The case study on the Monitoring of Real Estate Loans explains valuation on a “cost to f o tnempoleveD eht complete” basis, insisted on by all lenders, very different from the valuation on a “work etaintsplace” E laeRbasis expected by contractors. A simple Reserve Fund Study for a done” or “work small Alberta condominium, rounds out the case studies. A comprehensive glossary of real estate terms is provided, in addition to time and money calculations from basic formulae, and mortgage, future value, and present value tables. Real estate students studying Development Economics will find this book an exceptional aid to their studies, and seasoned real estate professionals, and those associated with real estate development will find this an excellent reference tool.

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MEMBER PRICE: $80.00 plus shipping and taxes NON-MEMBER PRICE: $120.00 plus shipping and taxes To order your copy, please visit the CIQS Online Store (members must log in to obtain member pricing) at www.ciqs.org.

To order by telephone please call CIQS at 905.477.0008 or toll free at 1.866.345.1168.

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

From the Past

11 Spring 20

Fund Reserve

Studies:

an opportunity for quantity surveyors

By Lenny Simonelli, B.Arch.Sci.,M.Sc.,GSC,PQS

“You are a quantity surveyor?

So you survey the land, right?”

How many of us have been asked this question by an individual who has heard the term ‘quantity surveyor’ for the first time? Granted, the term, along with the professional designation, has been gaining momentum and recognition over the past several years due, in large part, to the efforts of several individuals of the Canadian Institute of Quantity Surveyors.

The reality, however, is that there is still a great deal of collective effort required to clarify the term and enforce its importance to the built environment.

The latest publication of Available Services & Finding, Selecting and Engaging a Professional Quantity Surveyor (available at www.ciqs.org) provides the following definition of this oft-confusing idiom: “A Professional Quantity Surveyor (PQS) is one who has dedicated his or her career to the practice of construction

economics and the management of construction through effective cost control.”

While this broad definition bodes well in its attempt to generalize the work of a PQS, a more in-depth review of the booklet named above provides a wide range of potential services offered by individuals who have successfully completed the stringent academic and workexperience requirements to call themselves a Professional Quantity Surveyor.

Among the common services provided by a PQS such as cost consulting, cost planning, estimating, value management, mortgage monitoring and life cycle costing, one little-known service (and one that is rarely provided by members holding the PQS designation) is that of Reserve Fund Studies.

The Condominium Act provides a list of the individuals who are permitted to conduct a Reserve Fund Study to a registered condominium corporation. Did

you know that “…members of the CIQS holding the designation of Professional Quantity Surveyor…” are on the list!1 Great news, but what does that mean for me as a PQS? I do not even know what a Reserve Fund Study is, much less how to go about producing one!

What is a Reserve Fund Study?

A Reserve Fund Study is a budget planning tool that is created for the benefit of a property with multiple owners, such as a condominium corporation or association. It is an instrument that identifies the current status of the Reserve Fund and produces a stable and equitable Funding Plan to offset the anticipated future major common area expenditures.

Reserve Fund Studies are, in essence, planning tools designed to help the Board anticipate and prepare for the property’s major repair and/or replacement costs.2 In the province of Ontario, Reserve Fund

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

The Condominium Act provides a list of the individuals who are permitted to conduct a Reserve Fund Study to a registered condominium corporation.

Studies are a mandatory requirement for every registered condominium corporation and must be completed in accordance with the requirements listed in this document, generally every three years.

What are the objectives of a Reserve Fund Study?

A Reserve Fund Study is intended to allow the board and management to offset the ongoing deterioration of the common area elements with funds to ensure their timely repair and/or replacement. By performing a Reserve Fund Study, any irregular reserve expenses are typically offset by an ongoing reserve contribution, or via a periodic special assessment.

The maintenance and/or full replacement of all physical common area assets can be achieved in a predictable manner with respect to their inevitable deterioration. Therefore, it is entirely plausible to prepare in advance for these inevitable expenses, spreading out these contributions evenly over a given period of time, rather than special assessing the residents at one particular time.3 In a language that is more conducive to the laymen, a Reserve Fund Study’s principal objectives are to explain:

• What you own • How much money you have • When things need to be replaced • What it is going to cost for future repair and/or replacement • What you can do to pay for future repairs and/or replacement What are the components of a Reserve Fund Study?

Reserve Fund Studies typically contain two distinct components: Physical analysis Financial analysis The physical analysis section essentially attempts to answer the question, “how long will the common area elements last?”

This section contains a component inventory, a condition review of the assets, the effective age of the assets and an estimated remaining life of the assets.

The financial analysis section provides a reply to the question, “how much do these things cost?”

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

This section contains information about the future replacement costs of the assets, a review of the current funding level, contributing factors such as inflation and interest rates and a recommendation for the annual allocation to the reserve fund.4 Conclusion With Reserve Fund contributions generally making up 15% to 25% of the typical Community Association’s budget, a systematic review of the current funding platform is crucial and should be performed by a costing professional highly familiar with construction materials and costs.

This systematic review also ensures that the facility is kept in better condition, thereby maintaining higher property values. However, if the Reserve Fund Study is not done appropriately or is done to excess, it has the potential to adversely affect the value of the units.

However, regular maintenance, periodical major repairs and replacements can result in dramatic costs. Collecting monies from unit owners on short notice to pay for the replacement and/or repair costs of the common elements within the condominium is often a difficult task to perform. As a result, a proper Reserve

Fund Study should be performed in a manner that allows the establishment of a minimum desired annual balance, which should be maintained through annual contribution amounts. Factors such as inflation and interest should also be factored into the study. These monies should ensure that all maintenance,

repairs and/or replacement costs are covered in full without the need for periodic, large special assessments.

Ensuring an optimum balance between the actual needs and the amount of monies being collected every month as part of the maintenance fee is challenging. If the amount is too low, the monies in the

QUANTITY SURVEYORS ConEcon is a rapidly growing Quantity Surveying firm currently seeking applicants that have completed Diploma in Building Technology and have construction management, cost planning and estimating experience.

We provide a variety of services to the dynamic construction industry including but not exclusive to project monitoring, estimating and contract administration. The projects with which we consult vary in size from Low-Rise Residential to Commercial and Industrial buildings.

Responsibilities will include but not limited to: • Cost Planning and Estimating • Value Analysis • Tendering and contract administration • Reviewing hard and soft cost construction budgets • Performing site inspections Preference will be given to applicants with the ability to work independently. As well as to those who possess entrepreneurial and excellent communication skills.

For an interview or further information for a beneficial career in quantity surveying and construction management industry please forward your resume to: ConEcon Consultants Inc. Suite 201, 7857 - 6th Street, Burnaby, BC V3N 3N4 Email: info@conecon.ca www.conecon.ca

fund may not be sufficient when some major repair or replacement is needed, thereby causing a deficit. On the other hand, collecting more monies than actually required would needlessly increase the monthly contribution amounts paid by unit owners of the condominium. In this latter scenario, the overall market value of the individual units with higher monthly fees would obviously be lower than a unit of a similar nature, but with lower fees. Achieving the correct balance between the actual needs and the monies collected for the Reserve Fund is very crucial and has a far-reaching influence on the property value.5 By virtue of their training and related work experience, a Professional Quantity Surveyor is the ideal individual to produce highly detailed and accurate Reserve Fund Studies to condominium corporations and community associations.

Don’t let your reservations about Reserve Fund Studies stand in your way of something better!

Lay aside in the good times for the bad.

The one who does not is like the one who, while lucky at Russian roulette, continues to play indefinitely.

- Fred W. Smith End notes: The Condominium Act, Ontario Regulation 48/10 www.reservestudy.com Class 2 Updated Reserve Fund Study for York Region Condominium Corporation No. 848, prepared by ReXcon ConstruXion Corp., 2010 The Condominium Home Owner’s Association www.choa.ca Class 2 Updated Reserve Fund Study for York Condominium Corporation No. 351, prepared by ReXcon ConstruXion Corp., 2011

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

Congratulations to the following members who have qualified as a PQS or CEC (including reinstatements): CIQS – British Columbia

CIQS – Prairies and NWT

CIQS – Ontario

CIQS – Quebec

Christopher Gray, PQS Larry Hrabchuk, PQS Simon Kelly, PQS Na (Marcy) Li, CEC Dorian Medlicott, CEC Dany Savard, PQS Lei (Peter) Zhang, PQS

Elmer Acasio, CEC Leslie Fowler, PQS Vincent Jiang, CEC Alan McHugh, CEC Kevin McHugh, CEC Helio Rodrigues, CEC

Ashish Gupta, PQS Carlo R. Guido, PQS Laeeq Hassan, PQS Jitendrakumar Patel, PQS Daniel Onwuzo, PQS Ryan Stephenson, PQS

Martin Latreille, CEC

S U STA IN IN G CONST RUCT I ON BUILDING FOR THE FUTURE

MARK YOUR CALENDAR è 2014 CIQS Congress June 19-21, 2014 Sheraton Eau Claire, Calgary, AB

A special rate of $229/one bedroom suite has been negotiated and can be booked by calling the Sheraton Eau Claire directly 1-888-784-8370 or 403-266-7200 or by email at reservations@sheratonsuites.com and referring to the CIQS congress.

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.

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

five unrealistic expectations we have of our ‘Smart’ phones and other devices (and how to get back to reality)

O

ur smartphones, tablets and other devices are technological marvels, but unfortunately, they have diverted our attention away from what people can accomplish in conversations. Here are five unrealistic expectations we have for how our digital devices boost communication and advice to help us improve our communication with each other.

Advertisements promise that the latest smartphones, tablets, laptops and other gadgets will put blazing speed at our

fingertips, enable us to multitask like an octopus and ensure that we never miss a thing. Because new technology promises – and does – a lot for us, it is no surprise that we have fallen in love with it. But in our enthusiasm for our new digital communication tools, we have lost sight of the people behind the tools. It is time to turn that around. And to do so, Geoffrey Tumlin offers an important reality check.

He says our devices are great, but they cannot do quite as much as we think they can. And in fact, when it comes to communication, people can do much better.

“A tech-centered view of communication encourages us to expect too much from our devices and too little from each other,” says Tumlin, author of the new book Stop Talking, Start Communicating: Counterintuitive Secrets to Success in Business and in Life (McGraw-Hill, August 2013, ISBN: 978-0-0718130-4-4).

“Until we restore a more people-centered approach, we will continue to feel unsatisfied and largely unfulfilled by our interactions – despite having the most powerful connection and transmission devices in human history in the palms of our hands.

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

“In truth, because of the incredible opportunities our devices offer for connecting with others, today really could begin a golden age of communication,” Tumlin asserts. “But that will happen only if we stop romanticizing the technology and start improving our communication. We need to lower our hopes for our ‘smart’ devices and raise our expectations of each other.”

That is where Stop Talking, Start Communicating comes in. Full of counterintuitive yet concrete advice, it draws on Tumlin’s research background and experience as a communication consultant to show readers how to develop productive communication habits, to improve conversations and to use our powerful digital devices to bring us closer to our higher-order aspirations.

Here, Tumlin shares five unrealistic expectations that have emerged during the long honeymoon of the digital communication revolution and outlines what we need to do to correct them:

Unrealistic expectation #1: OUR NEW DEVICES HAVE MADE COMMUNICATION EASIER Just because our new devices enable us to reach out and touch someone with a few simple clicks, it does not mean that communication itself has gotten any easier.

“We are caught up in the excitement of the digital revolution,” asserts Tumlin. “We have been lulled into believing that communication is becoming easier because technological advances make it easier to send and receive messages. But because our interactions involve quirky, emotional and sometimes unpredictable people, we cannot eliminate imperfections from communication. Communication is fundamentally imperfect, and no matter how fancy our devices may become, they will never be able to eliminate the misunderstandings, the confusion and the errors that occur when people talk.

“Some communication is just plain hard,” he adds. “Like, when we have to communicate bad news, tackle a sensitive topic or have a conversation to address a difficult problem. Yes, it is easier to send and receive messages today, but it is important to remember that communication is as hard, and may be even harder, than it ever was.”

We need to lower our hopes for our ‘smart’ devices and raise our expectations of each other.

Unrealistic expectation #2: WE SUCCESSFULLY COMMUNICATE EACH TIME WE HIT THE ‘SEND’ BUTTON Our devices have greatly simplified the sending and receiving of messages, but there is more to communication than that. Communication does not occur until the other person understands our message, and that has become the missing link in far too many conversations.

Tumlin says, “If you think about how we communicate today, you will realize that we approach the majority of our exchanges with expediency in mind.

We want to plow through our inboxes, respond to new text or voice messages as soon as they come in, and get faceto-face conversations over quickly so we can move on to the next thing. The communication tasks that pile up every day make it awfully tempting to fire off quick messages or speak abruptly and think that our work is done.

“But adding an extra step – considering whether or not your message is understood – can make you a much more effective communicator,” he adds.

“The glut of messages we process on any given day encourages us to think of communication as something we do mechanically, when, in fact, communication is how we make our life. Smart com-

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

municators slow down when forming a message and consider whether or not the other person is likely to understand what they are communicating. Without understanding, there is no communication.”

Unrealistic expectation #3: BETTER COMMUNICATION TECHNOLOGIES MEAN BETTER COMMUNICATION Better communication technology does not lead to better communication, especially when the new tools encourage speed and convenience over thoughtfulness and deliberation, and when they fragment our communication, scatter our attention, and constantly distract us from the issues at hand.

“It is ironic that tools designed to improve communication have all too often degraded it instead,” says Tumlin. “My smartphone distracts me 10 times more often than any ‘dumb’ phone ever did, and I got a lot more work done when the mail came only once a day. Our daily challenge is to channel the power of our communication devices without being buried by it.

“Our technical capabilities have raced ahead of our actual abilities,” he notes.

“Smarter phones do not guarantee smarter communicators. Better communication happens only when our communication skills improve.”

Unrealistic expectation #4: WHAT I WANT TO SAY IS THE MOST IMPORTANT PART OF COMMUNICATION With the promise of instant communication whenever we want it and however we want it, self-expression seems to be the king of the Internet age. But meaningful and effective communication is possible only when we consistently place our conversational goals ahead of our conversational impulses.

“What separates average communicators from great ones is that the very best communicators do not let what they want to say trump what they want to accomplish,” says Tumlin. “The hardest thing in the world is to not say the witty comeback on the tip of our tongues and to restrain ourselves from saying something obviously counterproductive – but immediately gratifying – when a conversation frustrates us.

“Technology has encouraged communication on our terms and led to an explosion of self-expressive, mefirst messages. These same messages, unfortunately, are also the ones that torpedo our conversational goals. What you want to say is never more important than what you want to accomplish. That is a lesson that smart communicators never forget.”

Unrealistic expectation #5: COMMUNICATING TO AN AUDIENCE DOES NOT REQUIRE ANY SPECIAL CONSIDERATION One of the greatest deceptions of the

digital age is that sending a message to dozens of people is just as easy as sending a message to one person. In fact, nothing could be further from the truth.

Having a conversation with your boss is different from addressing the entire staff. A discussion with one friend is different from a discussion with 100 friends. But because all we have to do is click to send an email to all of our contacts or to post a social media message for the world to see, we have concluded, incorrectly, that adding people to a message doesn’t require any additional thought or consideration.

“The problem with this thinking,” says Tumlin, “is that communication gets much more difficult as you increase the number of people. More people mean more perspectives to consider. When we fail to account for these additional viewpoints, we run the risk of talking, texting, or typing right past each other, or worse, upsetting someone with a thoughtless message or a hasty reply.

“It is not practical to think through every possible perspective before posting to Facebook or sending a group email,” he adds.

“But we should take the extra step to consider key viewpoints and ask questions like ‘What is Uncle Billy going to think about this post?’ or ‘I wonder how this email is going to come across to the accounting department?’ Adding people complicates communication, and when we forget that lesson, conversational trouble is never far behind.”

“The digital communication revolution has encouraged us to expect way too much from our digital devices and far too little from each other,” says Tumlin.

“Our devices cannot handle anywhere near the amount of interpersonal nuance and complexity that human interaction entails. Consciously or not, we have quickly downshifted our expectations for our interpersonal conversations and focused too much on our devices. But the good news is that if we recalibrate our expectations, we will be in a much better position to take advantage of the unprecedented opportunities for meaningful connection during the digital age.

“We have never had so many ways to reach out and connect with each other,” he concludes. “If we put people back at the center of our conversations, this really could be the golden age of communication.”

ABOUT THE AUTHOR Geoffrey Tumlin is the author of Stop Talking, Start Communicating: Counterintuitive Secrets to Success in Business and in Life; founder/CEO of Mouthpeace Consulting LLC, a communication consulting company; President of On-Demand Leadership, a leadership development company; and founder/board chair of Critical Skills Nonprofit, a 501(c)(3) public charity dedicated to providing communication and leadership skills training to underserved populations. His writing on communication and leadership has appeared in Discourse Studies, the International Leadership Journal, the Encyclopedia of Leadership, the Austin American-Statesman, and five editions of Professional Communication Skills.

He holds a PhD and an MA in communication from the U. of Texas at Austin and a BS from West Point. He received the Eyes of Texas Excellence Award (2010) for his work as the assistant director of the Center for Ethical Leadership at the U. of Texas at Austin. He was a faculty fellow at the University of Texas at Austin’s RGK Center for Philanthropy and Community Service and a Cátedras Laboris Fellow at the U. of Monterrey in Nuevo León, Mexico. He lives in Austin, Texas.

Learn more about Geoffrey Tumlin at www.tumlin.com, or reach him by e-mail at geoff@tumlin.com.

Stop Talking, Start Communicating: Counterintuitive Secrets to Success in Business and in Life (McGraw-Hill, ISBN: 978-00718130-4-4, $20.00, www.tumlin.com) is available at bookstores, from major online booksellers, and at www.tumlin.com.

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

Woodbury

up

furniture store’s second story

oing

gooo

By Bob Shaw (bshaw@pioneerpress.com)

A

Woodbury furniture store is taking recycling to a new level - 19 feet in the air, to be precise.

For the first time in the metro area, new technology is being used to jack up a large roof so a second story can be built underneath.

The technique will allow Schneiderman’s Furniture to save about half the cost of building a new building - and to recycle the 35,000-square-foot roof.

“Amazingly, we can reuse the roof. How green is that?” said store owner Larry Schneiderman.

Schneiderman’s Furniture is raising the roof on their Woodbury store in order to add a second story the building underneath. (Pioneer Press: Jean Pieri)

The slow-motion roof-raising started Friday. When the roof was seven feet in the air on Monday, it already had started to attract gawkers.

From nearby Interstate 94, the building seemed to be puffing up like rising bread on its way to a final building height of 34 feet.

“Once it is up in the air, it always creates a lot of inquiries,” said Marty Shiff, president of Rooflifters, based in Toronto and Miami.

The Woodbury job is only the second in Minnesota, said Shiff; the first was a warehouse roof-raising at Polaris Industries in Roseau several years ago.

The Schneiderman’s roof is small by Rooflifters’ standards. The company has raised roofs up to 16 times as large, about as big as 10 football fields. The highest it has lifted a roof is 70 feet, Shiff said.

In Woodbury, the first step was to remove everything in the store - furniture, walls, ceilings and flooring.

Next, Rooflifters installed 38 hydraulic jacks under the supporting beams of the roof. This week, field supervisor

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

Hank Gross Jr., right, locks the nuts down on a crib post for safety in case of hydraulic failure of a jack as they raise the roof of Schneiderman’s Furniture on Wednesday, October 2, 2013. (Pioneer Press: Jean Pieri)

Henry Gross checked out the jacks, which are controlled by a central panel.

Keeping a roof perfectly level is critical, Gross said. To coordinate the jacks, Rooflifters uses a system of stainless steel tapes connected to each one. As the roof is raised, the metal bands are slowly pulled up like measuring tapes that can be electronically monitored.

That way, Gross can detect if one jack is out of sync by as little as an eighth of an inch.

In the vast silent building, as the jacks slowly lift the roof, the smallest popping

sound can be significant to Gross.

“I lift more by sound than by sight,” he said. A creak could be the first clue that something is wrong, that one of the jacks might be out of alignment.

The roof can be raised as quickly as 12 inches in one hour, but crews must stop to reposition the jacks every two feet.

Usually, they lift a roof about five feet per

day. The metal bands are slowly pulled up like measuring tapes that can be electronically monitored.

The technique saves money and time.

The Schneiderman’s job did not require extensive building permits because the building’s footprint is unchanged.

The work is considered remodeling or renovation, not new construction.

When the roof is 19 feet in the air Wednesday, contractors will start building exterior walls to enclose the space.

The finished store, with a mezzanine level and twice the floor space, will have expanded areas for beds, area rugs, reclining furniture and living room furniture. Schneiderman expects it to open early next year.

The roof is raised with the help of synchronization tapes, foregoing, which go to each of the 38 hydraulic jacks lifting the roof. To coordinate the jacks, a system of stainless steel tapes is connected to each one. As the roof is raised, the metal bands are slowly pulled up like measuring tapes. (Pioneer Press: Jean Pieri)

“You lift the roof more by sound than sight,” said Henry Gross, as he listens for “welds that might break or anything out of the norm.” In the vast silent building, as the jacks slowly lift the roof, the smallest popping sound can be significant. A creak could be the first clue that something wrong, that one of the jacks might be out of alignment (Pioneer Press: Jean Pieri)

Henry Gross monitors the panel that controls the jack. The red lights indicate which crib posts are running. (Pioneer Press: Jean Pieri)

We are seeking a

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Please e-mail your resume and cover letter in confidence to: ronnie@pelicanwoodcliff.com for the attention of Mr. Ronnie Mandowsky

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

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

In Memoriam George Frizzell, PQS George, a Scotsman, passed away on the second of April 2013 at 85 years of age.

He is survived by his wife, Irene, son, Adam and daughter, Katey. George was in private practice as a quantity surveyor.

As a Fellow of the Royal Institute of Chartered Surveyors and a founding member of the Vancouver chapter of the Canadian Institute of Quantity Surveyors, George influenced and supported the role of Professional Quantity Surveyors and the development and growth of QSSBC. There was a celebration of life service for George held on Sunday, July 28 at Qualicum Beach on Vancouver Island with a ‘Sail Past’ and a piper. He will be missed by all who knew him.

Our condolences to the family.

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