Construction Economist Journal - Winter 2013

CONSTRUCTION ECONOMIST WINTER 2013

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

PM 40065075

Time to build

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CONSTRUCTION ECONOMIST WINTER 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

CIQS Board Chair: Mark Gardin, PQS Vice Chair: Dave Burns, PQS

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

Features It’s time to build . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2014 CIQS Congress . . . . . . . . . . . . . . . . . . . . . . . . 18 Construction starts on state-of-the-art indoor velodrome in Milton, ON . . . . . . . . . . . . . . . . 20 Subcontractor and project success. . . . . . . . . . . . . . 24 RICS & CIQS Annual Joint Event. . . . . . . . . . . . . . . 28 In memoriam - Mark Hutchinson. . . . . . . . . . . . . . 30

Secretary/Treasurer & Past Chair: Mark Russell, PQS(F) Registrar and CIQS – Ontario Rep: Craig Bye, PQS CIQS - British Columbia Rep: Matt Weber, PQS CIQS - Maritimes Rep: David Dooks, PQS CIQS - Québec Rep: Jacques Amelin, ECA CIQS - Newfoundland and Labrador Rep: Roy Lewis, PQS(F) CIQS - Prairies and NWT Rep: Michael Bernier, PQS 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. Published four times a year on behalf of the Canadian Institute of Quantity Surveyors by

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Departments Chair’s message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Executive Director’s message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Editor’s message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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. ............ Tracy Toutant 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

Education updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 CPD corner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Congratulations.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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

Consistency consistent

T

he word consistency should resonate with all CIQS members. After all, it is one of the most important parts of our daily work. Estimators and quantity surveyors hang their hat on being consistent and if we were not, we would be sent packing. The systems we use to do takeoff, price quantities, manage projects, and deliver estimates and cost plans depend on consistent, tried and tested approaches and if we waiver from them, we risk having an inconsistent product.

Our clients and our employers expect that when all else fails, they can depend on the consistency of a quantity surveyor and estimator to deliver the goods. So it should come to no surprise that CIQS as an Institute strives for the same consistency.

CIQS is driven by the Board and since the Board consists of quantity surveyors, its DNA makes them consistent in improving the Institute whether they know it or not. This became quite evident to me during the past Board meeting held in December.

It was amazing how many times the word consistent came up in our discussions in nearly every committee report as well as the consistent themes that illuminated the debate to advance the Institute.

During the presentation of the affiliate reports, common themes repeated themselves like a broken record.

(Perhaps I am dating myself with this analogy – especially with the newer

Mark Gardin, PQS

It was abundantly evident that our new website will consistently become the vehicle to drive CIQS from an operational stand point. younger crowd who did not grow up with a spin table and a disco record collection – if only we had iTunes back in the day.) The consistent themes related to the challenges affiliates are faced with regarding membership, education, and marketing.

There was plenty of dialogue during the marketing portfolio on developing key messages that need to be consistent throughout the country. Whether we are presenting to students at high schools or colleges or to government and industry, the messaging we project needs to be clear and consistent on the benefits of either becoming a quantity surveyor or the tremendously high level of skillset that a quantity surveyor brings to the construction industry.

Under the governance portfolio, in the new model, all the documents that regulate CIQS and its affiliates need to be consistent simply from a legal perspective. The new Affiliate Agreements, the new National Standards (formerly Rules and Regulations), and the new affiliate bylaws must have consistent language to guide the organization and allow us to operate effectively.

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

And it was abundantly evident that our new website will consistently become the vehicle to drive CIQS from an operational stand point. Nearly every administrative and operational task that is now done somehow is linked back to our website including renewing membership, making a purchase, updating CPD, finding out about an event, and accessing the membership directory, just to name a few.

CIQS has consistently been on the international stage with its involvement in the Pacific Association of Quantity Surveyors (PAQS) and the European Council of Construction Economists (CEEC). With both organizations, CIQS is well respected in terms of education, professionalism and with thought provoking ideas.

In closing, I firmly believe CIQS will continue to be consistently the premier organization that sets the highest standards for cost professionals in Canada. And I truly believe CIQS consistently improves to better serve you. I thought I would end with a test – how many times was the word consistent used in this article? I know the answer – it was used consistently.

Message du Président du Conseil

Uniformité et cohérence

L

e mot uniformité devrait résonner en chaque membre de l’ICÉC. Après tout, c’est l’une des parties les plus importantes de notre travail quotidien.

Les évaluateurs et économistes en construction se fient sur la cohérence et si nous ne le sommes pas, nous sommes envoyés paître. Les systèmes que nous utilisons pour le démarrage, les quantités de prix, la gestion de projets, l’établissement d’estimations et de plans de dépenses dépendent d’approches cohérentes et éprouvées, et si nous dérogeons d’elles nous risquons de nous retrouver avec un produit incohérent.

Quand tout le reste échoue, nos clients et nos employeurs veulent pouvoir dépendre sur la cohérence d’un estimateur et d’un économiste en construction pour livrer la marchandise.

Il ne faut donc pas se surprendre d’apprendre que l’ICÉC, en tant qu’Institut, vise cette même cohérence.

L’ICÉC est guidé par le Conseil et étant donné que le Conseil est composé d’économistes en construction, son ADN le rend compatible avec l’idée d’améliorer l’Institut qu’ils le sachent ou non.

Je m’en suis vite aperçu pendant la dernière rencontre du Conseil en décembre.

J’ai été étonné de voir combien de fois le mot cohérent revenait dans les discussions dans presque tous les rapports de comité ainsi que les thèmes cohérents qui animaient le

débat en lien avec l’avancement de l’Institut.

Lors de la présentation des rapports affiliés, des thèmes communs se répétaient comme un disque rayé. (Je trahis peut-être mon âge avec cette analogie – surtout avec les gens plus jeunes qui n’ont pas grandi avec un tourne-disque et une collection de disques disco – si seulement nous avions eu iTunes dans le temps.)

Les thèmes cohérents liés aux défis auxquels les filiales doivent faire face en ce qui concerne l’adhésion, l’éducation et le marketing.

Lorsque nous avons traité le dossier de marketing, il y a eu beaucoup de dialogue sur le développement de messages clés qui doivent être cohérents à travers le pays. Que nous faisions une présentation à des élèves du secondaire ou à des étudiants d’université, au gouvernement et à des gens de l’industrie, le message que nous projetons doit être clair et cohérent en ce qui a trait aux avantages de devenir économiste en construction ou aux compétences très élevées qu’apporte un économiste en construction à l’industrie de la construction.

Pour le nouveau modèle faisant partie du dossier de gouvernance, tous les documents qui régissent l’ICÉC et ses filiales doivent être cohérents simplement d’un point de vue légal. Les nouvelles Ententes d’affiliation, les nouvelles Normes nationales (anciennement les Règles

et règlements) et les nouveaux Règlements d’affiliation doivent utiliser un langage cohérent pour guider l’organisation et nous permettre de fonctionner efficacement.

Et il est plus qu’évident que notre nouveau site Web servira à véhiculer l’ICÉC d’un point de vue opérationnel. Presque toutes les tâches administratives et opérationnelles effectuées en ce moment sont liées à notre site Web incluant le renouvellement de l’adhésion, les achats, la mise à jour du DPC, la communication des événements et l’accès au répertoire des membres, pour n’en nommer que quelques-unes.

L’ICÉC continue d’occuper une place importante sur la scène internationale de par son implication dans la Pacific Assocation Quantity Surveyors (PAQS) et le Conseil européen des économistes de la construction (CEÉC). L’ICÉC est bien respecté au sein des deux organisations en ce qui concerne l’éducation, le professionnalisme et ses idées inspirantes.

Finalement, je crois fermement que l’ICÉC continuera toujours d’être la principale organisation qui établit les normes les plus élevées pour les professionnels des coûts au Canada.

Je crois aussi que l’ICÉC s’améliore de jour en jour pour mieux vous servir. Je pensais terminer avec un petit test – combien de fois le mot cohérent a-t-il été utilisé dans cet article ? Je connais la réponse – il a été utilisé de façon cohérente.

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

Executive Director’s Message

Work continues but steady progress has been made

S

ignificant progress has made on the CIQS website. There is still work to be done, however, here is a list of major items that have been completed recently: Member Log-in A password reset feature has been added to the member log-in area. Click ‘Lost Password’ and enter your email address. You will then be sent an email with a link to reset your password.

You will need your Member ID # to complete this process.

Member’s Only Portal: 1. Registration for CIQS Exams is available. May 2014 is the next session for exams. The final deadline for registration is March 1, 2014.

2. The Online Store Member’s Only section now complete. Check out our new book that is now available, Smart Economics in the Development of Real Estate.

3. Directory of members is now complete. Please note the following with respect to the directory:

You’ve paid your dues.

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Lois Metcalfe

• Membership directory will be in the member’s only portal. It will NOT appear on the public site.

• Searches should be available by first name, last name, employer, affiliate and membership category.

• A search for a member will show their business information (company, address, telephone, fax, email). If in the event there is no business information (unemployed, retired, student, etc.) only the member’s email address will show.

• Members are given the opportunity to ‘opt out’ of the directory. Go to ‘Your Profile’ in the member’s only section, click on the Directory Option tab and untick the box ‘Show me on Directory Search.’

Our developers are working on the browser issue which we expect to be complete by the end of the year. Thanks to all our members for their patience and co-operation.

By the time you receive this magazine, the holidays will be over and a new year will be upon us. I hope everyone had a wonderful holiday. Best wishes for a prosperous New Year.

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27-MM9208-13_TDI.EN•ciqs (7x4.625).indd 1

13-11-25 10:28 AM

6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2013 Projet : Annonce TDI 2013

Province : Ontario Publication : Construction Economist

Épreuve # : 1

EMPLOYMENT OPPORTUNITY Part-time web administrator CIQS is the premier professional association that sets the highest standard for construction and infrastructure economics in Canada.

Designated Professional Quantity Surveyors (PQS) and Construction Estimator Certified (CEC) professionals counsel building owners, developers, designers and contractors at every stage of the design, procurement and construction process to help ensure a return on investment is delivered.

CIQS represents nearly 2,000 members from across Canada and abroad, and have recently launched a new website that includes six affiliate websites and a Content Management System (Members Portal) within its website. We are currently seeking a part-time web administrator with the following attributes: Key responsibilities • Ensure all information on both the English and French versions of the website is accurate and current • Edit and manage both the English and French website content • Add new pages, files and images to the website • Assist administrative teams with updating member’s information and maintaining database where necessary • Assist members with online and telephone support • Update events calendar • Update CPD opportunities • Update career postings and consultant listings • Train affiliate administrators Skills • Fully bilingual in both oral and written in French and English • Knowledge of e-commerce web presence and ability to support real-time, business critical portal • Experience with website formatting (text, images and page layouts) using HTML and CSS • Proficient in MS Office Suite (Word, Excel, PowerPoint, Visio, Outlook) • Experience with graphics, layouts and HTML navigational components • Experience with managing websites using a Content Management Systems (CMS) • Experience with search engine optimization, content tagging and workflows

• Experience with Social Networking is preferred • Equally Proficient in both French and English technical writing (admin and user documentation) Assets • Effective communicator • Responds positively to timelines and deadlines • Understands or has a basic knowledge of construction and the Quantity Surveying profession Estimated commitment Time commitment is expected to involve 60-100 hours per month for the first three months then taper to between 40-60 hours per month throughout the year. Time commitments may fluctuate on a monthly basis but the minimum expected commitment will be 40 hours per month.

Submission requirements CIQS is accepting proposals from individuals or firms interested in this position.

Firms responding to this advertisement are requested to provide the following: • Company profile and related experience • List of key personnel with resumes • Hourly rates • List of three references with contact information Individual candidates responding to the advertisement are requested to provide the following: • Resume outlining related experience • Hourly rate • List of three references with contact information Submissions are to be received by CIQS no later than 5:00pm EST, February 3, 2014 and delivered to: info@ciqs.org Attention: Lois Metcalfe, Executive Director Questions may be directed to CIQS, Lois Metcalfe, Executive Director at 1.866.345.1168 or in writing to info@ciqs.org.

Only candidates interviewed will be contacted.

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

Editor’s Message

Happy New Year and welcome to 2014!

Canada Construction Outlook in 2014 Looking back to the economic times of 2009, the 2013 economy was more than a blessing to the industry. Without a doubt, everyone wishes 2009 would fade off from memories.

It was a difficult year for many individuals and businesses, and of course the construction industry. During 2013, we have seen the industry spend rise to more than $241 billion in goods and services and employing roughly 1.3 million Canadian men and women. This is an increase of more than 20% when comparing 2013 to 2009. As we start 2014, the Pan American Games 2015 construction activities in Toronto will begin to show off beauty as cranes leave job sites and job sites become finished structures. The amount of spend on the Pan American Games 2015 will continue to keep the Ontario construction industry overheated and its spending capital will be third to Alberta.

As we begin the first quarter of 2014, all economic indicators are strongly suggesting a healthy 2014 construction industry.

Moderate construction spending is expected throughout 2014 and is expected to rise sharply in spring 2014. Although material escalations and labour shortages in some Canadian provinces may continue to pose challenges, the instabilities in Europe still continue to provide windfall to the Canadian market.

The US economy is holding up steadily as the impacts of the recession have faded away. This will help continue to keep the Canadian growth strong and stable permitting increased construction spending.

Industrial Product Price Index In the fourth quarter of 2013, the four largest quarterly price changes among the main commodities used in construction were all increases: one in the mechanical group, one in the architectural group, one in the ‘other’ group and one in the structural group. The largest increase was in pipe fittings, rubber or plastic (+7.4%), followed by carpets in rolls (+5.7%), diesel fuel (+5.4%) and sheet, strip and plate, carbon steel, hot rolled (+4.7%).

The prices of carpets in rolls, which had not advanced in the previous two quarters, climbed 6.8% in the second quarter of 2013.

The price of diesel fuel was up for a fourth consecutive quarter (+5.6%). However, the increase was not as large as in same quarter of 2012, where the price of diesel fuel rose 14.8% in the first quarter of 2012 and 15.2% in the fourth quarter of 2011.

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

Joshua Mutize, PQS

Posting its sixth consecutive year-over-year increase, the price of diesel fuel continued to climb, with a 36.1% jump in the second quarter of 2012. Year-over-year comparisons of the price of diesel fuel in 2011 showed steady quarterly increases, with gains of 18.2% in the first quarter, 17.3% in the second quarter, 7.4% in the third quarter and 12.9% in the fourth quarter. In the first quarter of 2012, the price increased by 25.7% on a year-over-year basis.

On a year-over-year basis over the last 12 months, prices for plywood softwood excluding Douglas fir were down for a fourth consecutive quarter, having fallen 11.3% in the third quarter of 2012, 8.2% in the fourth quarter of 2012, 9.2 % in the first quarter of 2012 and 20.4% in the second quarter of 2012.

Construction Union Wage Rates Index In the fourth quarter of 2013, the Canada Total Construction Union Wage Rates Index (including supplements) increase by 0.8% compared with the previous quarter. It was 2.1% higher compared with the second quarter of 2012.

On a regional basis, the index for the Quebec Region registered the highest quarterly change (+1.2%), the Ontario Region (+0.4%) and the Prairie Region (+0.7%). Only the British Columbia Region showed a decline (-0.04%).

Non-residential Building Construction Price Index The composite price index for non-residential building construction increased by 2.3% in the fourth quarter of 2013 compared with the previous quarter. The previous year, 2012, rose by only 1.6 % over 2011 for the same time period.

All seven of the census metropolitan areas (CMAs) surveyed reported quarterly increases ranging from 0.6% to 1.6%.

Ottawa–Gatineau, Ontario part (+1.7%) and Toronto (+2.8%) recorded the largest gains.

Year-over-year, the composite price index for non-residential building construction was up 3.42%. Of the CMAs surveyed, Ottawa–Gatineau, Ontario part (+4.5%) and Toronto (+4.1%) recorded the largest increases while Calgary (+1.7%) registered the smallest gain.

Developing tomorrow’s leaders now I want to leave you with thoughts from my favourite article that I have shared with you before. This article, whose heading said ‘MUST READ,’ was written by Dov Seidman, a graduate of UCLA, Oxford University and Harvard Law and was extracted from Dov’s book entitled How.

Editor’s Message

The greater we gain control on this factor, the greater are our chances to provide meaningful construction cost data.

NOTICE TO MEMBERS

“How is a radically different and compelling approach to competing in business today. We are all aware of the implications of operating in a trans- parent, wired, global marketplace,” says Jeff Kindler, Chairman and CEO, Pfizer Inc. This article is based on the 1996 film Jerry Maguire starring Tom Cruise and directed by Cameron Crowe. If you have not seen this movie, you should definitely look for it. Jerry argues that “The Things We Think but Don’t Say.” John Wooden, Hall of Fame basketball coach put it this way, “It isn’t what you do, but how you do it.” During the time when the movie was released, the economy was booming and we were in a ‘just do it’ mode. ‘Just do it,’ also a Nike slogan, clearly portrays the seemingly limitless possibilities of the decade. Many companies looking for a way to keep up with the rapid influx of capital looked for ‘shortcuts and easy solutions’ and neglected long term goals. The message to employees was clear, ‘just do it.’ We are focusing on the bottom line. They ignored the means and methods employed. Along the way, we lost ‘How’ and we all felt it in 2009 when the economy busted. ‘Just do it’ is no longer enough,” says Seidman. At the beginning of this century, concurrent with global growth and technology advancement, there was a sudden growth of the information age and sudden sense of disequilibrium. This flood of

undigested and unprocessed information bombards us minute by minute, giving us little time to regain our equilibrium.

Although, it is too early to predict without hesitation, there is credible evidence to suggest that we have started emerging from the economic ‘Black Hole.’

“As their failure gets exposed, we feel vulnerable.”

Seidman persuasively argues that the process management, now almost a fad, might be strangling innovation. Think about it. HOW we do WHAT we do. WHATs used to be enough for our industry, but are not anymore! HOW is what is important.

How can we communicate better historic cost data, construction escalations or inflation to the industry? According to Seidman, the reason to emphasize the HOWs now is that they are the under attended part of the equation. In this 21st century, HOW is the x-factor. The greater we gain control on this factor, the greater are our chances to provide meaningful construction cost data.

I believe with today’s vast networks of information, we should be able to deliver a better forecast and better historic cost data. I know there are many economists who desire to provide WHAT, yet there is a tremendous variation of these WHATs. How?

Method of Measurement of Construction Works review committee Our current Method of Measurement (8th edition) is based on MasterFormat 2004 and was updated in 2006.

CIQS is looking for members to serve on a committee to review our Method of Measurement of Construction Works.

If you are interested in serving on this committee, please email Lois Metcalfe at execdir@ciqs.org.

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

Education Updates

Looking for CIQS exam setters/markers The following was presented at the December 2013 CIQS National Board Meeting: • The November 2013 examination session was held without any major issues. The marking of answer papers is underway.

• We have lost several examination setters/markers recently and we are looking for qualified members to replace them. Any qualified member who wishes to assist in the setting/marking of examinations can contact the head office. Please note that this qualifies for 15 CPD points per subject.

• The new Career Booklet is now available on our website. The French version will be available shortly.

• Kevin Alexander, PQS, our representative for the Memorandum of Interest with Seneca College, has met with his counterpart of the college. He has submitted his first review of the proposed new Civil syllabus to the college for comments. It is hoped that this first round of review will be completed by the end of January 2014.

• Earlier this year, we were informed by CCA that they wished to end the Certification Agreement we have with them by the end of 2013. I am happy to report that the CCA has informed us that they will continue to honour the agreement until further notice.

• During the September 2013 CIQS National Board Meeting, I was asked to research a new membership route that would make it easier for our members or potential members that possess the required academics and relevant work experience to gain the PQS/ECA and CEC/ECC certification. This report was presented and I am pleased to announce that my recommendations were approved. The new membership pathway is called the TPE Route 12A & 12B – Professional Experience Membership Pathway and are based on the following: a) TPE Route 12a – Professional Experience Membership Pathway for the CEC/ECC Designation: 1) Candidates must apply for and be accepted as a member of the CIQS before they can attempt this membership pathway. Upon acceptance, candidates will be placed in the Associate Membership category until the successful completion of this membership pathway.

2) Candidates must have achieved the required CIQS subjects or equivalent for the CEC/ECC designation or be granted special permission by the Affiliate’s Membership Committee to waive such requirements.

3) Candidates must have achieved a minimum of six years of applicable work experience. A summary of work experience must be submitted.

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

David Lai, PQS (F)

4) Candidates must submit up to four Case Studies that highlight the requirements of the Class D1 Diary as noted in the CIQS Education Policy Guidance Note #B2.

5) Candidates must have three proposers/sponsors, two of which must be PQS/ECA members of the CIQS and one must be their current employer. In the case where the candidate is self-employed, the three proposers/sponsors must be three PQS/ECA members.

6) Assessment of the candidates’ applications will be done by the Affiliate’s Membership Committee. Candidates may be required to attend a professional interview.

7) Upon successful completion, the candidates will be awarded the CEC/ECC designation. b) TPE Route 12b – Professional Experience Membership Pathway for PQS/ECA Designation 1) Candidates must apply for and be accepted as a member of the CIQS before they can attempt this membership pathway. Upon acceptance, the candidate will be placed in the Associate Membership category until the successful completion of this membership pathway.

2) Candidates must have achieved the required CIQS subjects or equivalent for the PQS/ECA designation or be granted special permission by the Affiliate’s Membership Committee to waive such requirements.

3) Candidates must have achieved a minimum of seven years of applicable work experience. A summary of work experience must be submitted.

4) Candidates must submit up to four Case Studies that highlight the requirements of the Class D3 Diary as noted in the CIQS Education Policy Guidance Note #B2.

If the candidate already holds the CEC designation then he/she must meet the requirements of the Class D2 Diary as noted in the CIQS Education Policy Guidance Note #B2.

5) Candidates must have three proposers/sponsors, two of which must be PQS/ECA members of the CIQS and one must be their current employer. In the case where the candidate is self-employed, the three proposers/sponsors must be three PQS/ECA members.

6) Assessment of the candidates’ applications will be done by the Affiliate’s Membership Committee. Candidates may be required to attend a professional interview.

7) Upon successful completion, the candidates will be awarded the PQS/ECA designation.

CPD Corner

David Dooks, PQS

T

This is our legacy to our community

his year I am honored to serve as CPD representative, as well as Vice Chair on the CIQS Maritimes Council and CIQS Maritimes Representative to the National Council. I would like to take a moment to introduce myself to the membership.

I was born in Nova Scotia and am a truehearted Bluenoser.

I have a lifetime of experience in the field of construction. My father was chief foreman for a large drywall / interior finishes contractor in the Maritimes for over 25 years. From the age of five, he would take me to project sites (hospitals, schools, government buildings) and I got the grand tour. When I was old enough to legally work, I spent my summer vacations and winter breaks working with my dad on projects. I was an intuitive young teen eager to ask questions and learn about every trade and aspect of construction that was available.

Construction was the job, completion of projects was the goal, and the ‘Team’ that built it was the community.

As I grew from a teenager to young adult, I lost interest in following in my father’s footsteps in construction and began to work towards a Bachelor of Science degree at Saint Mary’s University in Halifax. College life disinterested me more and soon the thought of studying for three to five years to get a degree began to wear on me. With little motivation in academics, I went back to work in construction and became a member of the Carpenters Union. I started a family, built a house and was working on jobs all over Nova Scotia. As time went on and my experience in construction grew, my employers started asking me to consider going back to college and take the Construction Management Program offered at the Nova Scotia Community College NSIT Campus. In 2001, I went back to school to complete the two year Construction Administration Technology (CAT) Diploma at NSIT. My first introduction to quantity surveying was from a teacher (Peter McKenna, PQS) who was instructing construction measurement. He was very proactive at spreading the word and encouraging the class to consider our future role as PQS in the Construction Industry.

In 2003, I graduated, with honours, from the CAT program.

I really hoped to find work as a construction estimator but little did I know that wanting the job and proving myself as a construction estimator were at opposing ends of the spectrum to a general contractor. So I started my estimating career with a QS firm in the Maritimes. I was mentored into the role of a PQS by an amazing team of hard working CIQS members and in 2004 I was accepted as a CEC into the CIQS membership. For

more than five years, I worked with the QS firm and enjoyed every moment learning and growing with the successful completion of every job.

In 2008, I gained my certification as a Professional Quantity Surveyor (PQS). I was determined to set out again in search of the job as a general contractor’s estimator. With the qualifications bestowed on me as a CIQS designation holder, several general contractors took interest in my experience as a PQS estimator.

It was encouraging to see that the time and effort I had invested now offered me choices not previously available. I chose to work for the largest family owned general contractor in Atlantic Canada because they valued my experience and I valued the fact that we could grow together. Again I found myself working with an amazing team of industry professionals sharing the desire to provide quality and integrity to every project we bid on and completed. I learned more about construction contracts, the competitive field of bidding jobs, the stressful atmosphere of completing a bid, and how projects are managed hands on. This was different from my previous QS consulting job but also similar because I was still providing cost planning and construction budgets to owners and architects. My job as estimator with a QS background provided me with the skills needed to bid tenders and enabled me to adapt by providing construction management services for owners, preparing cost solutions to architects, and developing construction estimates to assist our design build team.

This year completes my tenth year as a professional quantity surveyor working as a construction estimator. I am thankful for the opportunity to serve on the CIQS National Council and to be welcomed into an even larger community of experienced and knowledgeable professionals from across Canada. My role in construction only continues to grow and everyday is a potential to learn from those around me. Mine is a life commitment to improving my community. Our role as quantity surveyors is ever changing and we owe it to ourselves and those that we serve to excel and hold each other to the standards that make us recognized as professionals. The audits for CPD are fast approaching and this should not be a time of anguish. Instead this should be a time to reflect on our accomplishments over the last year and how we have contributed to the community we serve.

Whether from the long hours of work, mentoring an associate, lecturing a seminar, serving on a board, or simply reading this article, no effort is minor; life is built on the completion of tasks.

We hope you will share in the wealth and knowledge of our combined efforts; this is our legacy to our community.

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

It’s time

to build

Time is of the essence.

This is a term that is often written into standard construction contracts. Most people think it means that the project should be built as fast as possible. It does not quite mean that however. What it really means is that in a contract where a time frame or completion date is stipulated if one party can prove that the other party is not executing the contract as expediently as reasonably possible or deliberately delaying completion there may be cause for a breach of contract.

Time is obviously important in any undertaking. Time is money is another often used term and in most cases it is true. When it comes to construction contracts, schedule and cost are usually the two most important and contentious issues between owners and contractors.

The two biggest risks for a contractor on a fixed price contract are schedule and labour productivity. Most of the contractor’s overhead costs are time related and schedule delays can be very expensive. How often have we heard the expression ‘on time and on budget?’

When one considers the technological advances society has made over the past 50 years one thing that does not seem to have kept pace is the time it takes to build things; especially big things. There are many reasons for this including more government oversight, much stricter laws regarding safety and more building complexity.

This article will look at some of the more remarkable 20th century construction projects that were executed so fast that it just would not seem possible to replicate them today. There were a variety of reasons as to why

these projects were completed with incredible expediency including inflated egos, bragging rights and ending the Second World War. These remarkable achievements will be compared to similar type projects constructed more recently.

The Empire State Building is one of the most recognized structures in the world.

This iconic art-deco structure in the heart of Manhattan in New York City soars 103 stories above the street. By the early twentieth century a skyscraper race was on. By 1909, the Metropolitan Life Tower rose 700 feet (50 stories), quickly followed by the Woolworth Building in 1913 at 792 feet (57 stories), and soon surpassed by the Bank of Manhattan Building in 1929 at 927 feet (71 stories).

When John Jakob Raskob decided to join in the skyscraper race, Walter Chrysler was constructing a monumental building, the height of which he was keeping secret until the building’s completion. Not knowing exactly what height he had to beat, Raskob started construction on his own building.

In 1929, Raskob and his partners bought a parcel of property at 34th Street and Fifth Avenue for their new skyscraper. Raskob was able to purchase the site for approximately $16 million.

After deciding on and obtaining a site for the skyscraper, Raskob needed

a plan. Raskob hired Shreve, Lamb & Harmon to be the architects for his new building. It is said that Raskob pulled a thick pencil out of a drawer and held it up to William Lamb and asked, “Bill, how high can you make it so that it won’t fall down?”

Often touted as the first commercial project to utilize ‘fast-track’ construction - when construction begins before the design is complete, this project adopted many construction methods that were unique at the time. Excavation began on January 22, 1931 and the first concrete was poured less than two months later on St. Patrick’s Day March 17. The steel framework rose at the incredible rate of four and a half stories per week.

Columns and beams were raised and riveted together less than four days after they rolled out of the steel mills in Pittsburgh. In all, 4,000 tradesmen toiled in shifts and deliveries were timed down to minutes. The builders Starrett Bros. & Eken employed some techniques which were visionary at the time including a rail system around the site and a special vertical conveyor that was used to lift loads of bricks from the basement to the upper floors. Bricks were dumped from trucks down chutes to the basement eliminating the need to store bricks at ground level. This freed up valuable space and contributed to the remarkable efficiency of the project.

One of the great challenges of building

in a downtown location is efficiently managing the delivery of materials.

The custom rail system the builders designed utilized hand pushed carts that held as much as eight wheelbarrows.

On April 11, 1931, 410 days after construction proper started, the building was officially opened. The Chrysler building had opened on May 27, 1930 and for so for only 10 months could lay claim to being the world’s tallest building.

By comparison, the recently completed 65 storey Trump Tower in Toronto took 54 months from groundbreaking to official opening, more than four times as long as it took to build the Empire State building.

While 5,000 men worked feverishly to complete the Empire State Building, another massive project was underway thousands of miles across the country in Nevada – the Boulder Dam, later renamed the Hoover Dam. Since about 1900, the Black Canyon and nearby Boulder Canyon had been investigated for their potential to support a dam that would control floods, provide irrigation water and produce hydroelectric power. In 1928, Congress authorized the project. The winning bid of $48 million to build the dam was submitted by a consortium called Six Companies, Inc., which began construction on the dam in early 1931.

The contract had to be completed

“Some 20th century construction projects were executed so fast that it just would not seem possible to replicate them today.”

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

“In another example of remarkable expediency, the largest office building in the world – the Pentagon was built in only 16 months.” by 1938 or the company would face stiff monetary penalties. Such a large concrete structure had never been built before, and some of the techniques were unproven. The torrid summer weather and the lack of facilities near the site also presented difficulties.

Nevertheless, Six Companies turned over the dam to the federal government on March 1, 1936, more than two years ahead of schedule.

E. W. Bullard, a Californian supplier of mining equipment, arrived home from World War I with a steel helmet, which provided him with an idea to improve industrial safety. In 1919 Bullard patented a ‘Hard-Boiled Hat,’ made of steamed canvas, glue and black paint. That same year the U.S. Navy commissioned Bullard to create a shipyard protective cap, which began the widespread use of hard hats.

Not long after, Bullard developed an innovative internal suspension that would provide a more effective hat.

The Hoover Dam project was the first construction site in history where construction workers were required to wear hard hats by order of Joseph Strauss, the project chief engineer. He wanted the workplace to be as safe as possible; hence, he installed safety nets and required hard hats while on the job site.

Despite these innovative safety measures, there were 112 deaths associated with the construction of the dam. Included in that total was J. G. Tierney, a surveyor who drowned on December 20, 1922, while looking for an ideal spot for the dam. He is generally counted as the first man to die in the construction of Hoover Dam. His son, Patrick W. Tierney, was the last man to die working on the dam’s construction, 13 years to the day later.

Ninety-six of the deaths occurred during construction at the site. The

site of Hoover Dam endures extremely hot weather, and the summer of 1931 was especially torrid, with the daytime high averaging 119.9 °F (48.8 °C).

Sixteen workers and other riverbank residents died of heat prostration between June 25 and July 26. Not included in the official fatalities number were deaths that were recorded as pneumonia. Workers alleged that this diagnosis was a cover for death from carbon monoxide poisoning, brought on by the use of gasoline-fueled vehicles in the diversion tunnels, and a classification used by Six Companies to avoid paying compensation claims.

The site’s diversion tunnels frequently reached 140 °F (60 °C), enveloped in thick plumes of vehicle exhaust gases.

A total of 42 workers were recorded as having died from pneumonia; none were listed as having died from carbon monoxide poisoning. No deaths of nonworkers from pneumonia were recorded in Boulder City during the construction period.

In another example of remarkable expediency, the largest office building in the world – the Pentagon was built in only 16 months. In 1941, the United States War Department consisted of 24,000 personnel housed in 17 separate buildings scattered throughout Washington D.C. Knowing that the workforce would have to be expanded to at least 30,000, the federal government considered constructing temporary buildings, but Brigadier General Brehon B. Somervell, an aggressive Engineer officer who headed the construction division, had another idea. On Thursday, July 17, he summoned two of his subordinates, Lieutenant Colonel Hugh J. Casey, also an Engineer officer, and George E. Bergstrom, a prominent civilian architect, and told them that

by Monday morning he wanted basic plans and an architectural perspective

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

for an air-conditioned office building to house 40,000 workers in four million square feet of space, not more than four stories high, with no elevators. Indeed, Lieutenant Colonel Casey and his staff completed the basic layout of a fivesided building by that following Monday, after what he later described was “a very busy weekend.”

The original site was nothing more than wasteland, swamps and dumps and 41,492 concrete piles had to be driven to support the building.

Construction started on September 11, 1941 (a very ironic date exactly 60 years to the day before it was attacked by terrorists) and partial occupancy began on April 1, 1942, less than seven months later. The five wing structure was completed one wing at a time with each wing being occupied after completion. Total construction of the six and a half million square foot building three times the floor area of the Empire State Building - took a mere 16 months.

The unique layout of the building resulted in 30 kilometres of corridors.

The Pentagon was also ‘fast-tracked’ so much so that there were many material substitutions as construction actually got ahead of design.

Of all the sports arenas in Canada, one of the most famous and storied is the fabled Maple Leaf Gardens in Toronto. Built to be the home of the Toronto Maple Leafs National Hockey League team, the contract to construct the building was awarded to Thomson Brothers Construction of Port Credit in Toronto Township. Thomson Bros bid just under $990,000 for the project, the lowest of ten tenders received, mainly due to the fact that amongst the Thomson Brothers’ various enterprises they had much of the sub contract work covered (Thomson Lumber, Thomson Bros. Excavation), and others could not compete in this manner. The bid price

did not include the cost of the structural steel and the total final construction cost was $1,500,000. In what is to this day considered to be an unparalleled accomplishment, the Gardens was built in five months and two weeks.

Construction began at midnight on June 1, 1931 and on November 12, the puck was dropped on the first home hockey game. (The Maple Leafs lost the game to the Chicago Blackhawks but went on to win the Stanley Cup.) The Gardens replacement arena, the Air Canada Centre was started in March 1997 and the first home game was 23 months later in February 1999. As in the case of the Trump Tower, construction of the new facility took more than four times as long as the original.

Of all the different types of projects, nuclear power plants are among those that currently have the longest durations to complete from groundbreaking to completion. The largest operating nuclear power plant in the world today is the Bruce Nuclear Power Facility in Tiverton, Ontario. Consisting of eight reactors in two plants, construction began in 1969 and the first electricity was generated in September 1977 almost eight years after construction started. The last nuclear power plant constructed in Canada was the Darlington Power Plant. Construction began in 1980 and it would be 11 years before the first unit was brought on line in 1991. Originally estimated to cost $3.90 billion the final price tag was $14.40 billion.

The first nuclear power plant built was the Hanford Reactor in Washington State, U.S.A. Built as part of the race to get the atomic bomb, construction on B Reactor began in August 1943 and was completed just over a year later on September 13, 1944. In 1939, Albert Einstein sent a letter to President Roosevelt informing him of German

atomic research and the potential for a thermo nuclear bomb. This letter prompted Roosevelt to form a special committee to investigate the military implications of atomic research. The Manhattan Project is formed to secretly build the atomic bomb before the Germans. In December 1942, Enrico Fermi and Leo Szilard demonstrated the first self-sustaining nuclear chain reaction in a lab under the squash court at the University of Chicago and the race for the bomb was now on. To develop such a device, the scientists needed enriched plutonium and to produce the plutonium they needed to build nuclear reactors and so the Hanford site in Washington was chosen.

Aware of the potential devastation a nuclear accident could cause, the U.S. Government needed a remote site with lots of water. Nearly 50,000 workers were hired and they lived in a construction camp near the old Hanford Townsite, while administrators and engineers lived in the newly built government town established at nearby Richland Village. A fleet of 900 buses were required to ferry the workforce from camps to the project site. Most of the workers did not know what they were actually building having only been told that it was part of the war effort. It is thought that of the 130,000 people directly involved in what was known as the Manhattan Project, fewer than 30 actually knew that the project was all about acquiring a thermo-nuclear weapon. Construction of the nuclear facilities proceeded rapidly. By the time the war ended in August 1945, the Hanford Engineering Works built 554 buildings at Hanford in 24 months, including three nuclear reactors and three mammoth plutonium processing canyons (chemical separation plants) each 250 meters (820 feet) long. The 540 square kilometre project also

required 621 km of roads, 254 km of railway, and four electrical substations.

The site would eventually be home to nine reactors and would produce almost all the plutonium required for the 60,000 nuclear weapons eventually developed.

It was a sense of great urgency and national security that pushed the crews at Hanford to build the reactors and chemical separation facilities with such speed. It would be simple to say that they managed to pull this off because ‘it had to be done.’ The downside was that the site is now one of the most polluted and dangerous places on earth. Since 1988, more than 35 billion dollars has been spent decommissioning the area and the work is only about half complete. The work is currently projected to be complete in 2065 and will cost an additional 65 billion dollars.

What took just a couple of years to build will take 80 years and a hundred billion to clean up. Many of the early safety procedures and waste disposal practices were inadequate and government documents have since confirmed that Hanford’s operations released significant amounts of radioactive materials into the air and the Columbia River.

Worker and public safety are paramount in today’s construction marketplace and this results in longer completion schedules. Laws and regulations regarding safety training, the wearing of personal protection gear and this use of such things as fall arrest systems have impacted productivity.

Buildings today are also much more complex than they were 80 years ago.

Our high tech world requires a lot more wiring and cabling to accommodate the computer systems and other electronic equipment required in our modern workplaces. Energy efficient mechanical and electrical systems and wall assemblies are a lot more complicated.

“Although many great projects in the past were completed with unimaginable speed, there is no such sense of urgency today.”

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

These systems require a lot more trades and complex scheduling.

There is also a lot more government and local inspection involved and this also contributes to longer schedules.

What is generally accepted as the first building code was in the Code of Hammurabi, which dates from 172 B.C. It was a code of 282 laws one of which specified: “If a builder builds a house for someone, and does not construct it

Consistent

properly, and the house which he built falls in and kills its owner, then that builder shall be put to death.”

The Bible book of Deuteronomy, chapter 22 verse 8, also states: “In case you build a new house, you must also make a parapet for your roof, that you may not place bloodguilt upon your house because someone might fall from it.”

The Government of Canada published the first National Building Code in

Bankable

Reliable

After 5 successful years in business CB Ross Partners proudly announces our ... new corporate image and name (formerly C.B. Ross Cost Consulting Inc.) new corporate head office located at: 1920 Yonge Street, Suite 501 Toronto, Ontario, M4S 3E2 CB Ross Partners is a consulting firm located in Toronto, Ontario and provides a full range of services to the development/real estate industry including:Project Monitoring Cost Planning Project Management Development Management Check out our updated website @ www.cbross.ca We have job opportunities in our Project Monitoring & Cost Planning/Estimating departments.

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.

16 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2013

1941. Ontario did not have an official provincial building code until 1976.

Since 1976, the Ontario Building Code has set the minimum standard for the design and construction of all new buildings and for additions, alterations and change of use.

The Code is a mandatory document used by architects, engineers, designers, builders, suppliers and manufacturers with regard to construction projects which are regulated by the Code. The purpose of the Code is to set minimum standards for construction to minimize the risk to the health and safety of the occupants of a building and to provide for the barrier-free accessibility into a building and the energy efficiency of that building. Although most code compliance is checked when a building permit is applied for, municipal inspectors have to visit every construction site to ensure full compliance. The importance of having strong building codes cannot be over stressed as building disasters can have devastating consequences.

In March 1911, the Triangle Shirtwaist Factory caught fire in New York City.

This was a major industrial disaster in the U.S., causing the death of more than 100 garment workers who either died in the fire or jumped to their deaths. The owners of the business had locked the exit doors to prevent theft.

This fire led to legislation requiring improved factory safety standards.

More recently, on April 24, 2013, an eight-story commercial building, Rana Plaza, collapsed in Savar, a sub-district in the Greater Dhaka Area, the capital of Bangladesh. The search for the dead ended on May 13 with the official death toll at 1,127. Approximately 2,500 injured people were rescued from the building alive.

It is considered to be the deadliest garment-factory accident in history, as well as the deadliest accidental structural failure in modern human history.

The head of the Bangladesh Fire Service & Civil Defense has said that the upper four floors had been built without a permit. Rana Plaza’s architect, Massood Reza, said the building was

planned for shops and offices – but not factories. Other architects stressed the risks involved in placing factories inside a building designed only for shops and an office, noting the structure was probably not strong enough to bear the weight and vibration of heavy machinery.

Conclusion Although many great projects in the past were completed with unimaginable speed, there is no such sense of urgency today. Safety is paramount for most contractors and clients. Quality also trumps speed. When the Empire State building, the Maple Leaf Gardens and the Hoover Dam were all built, most of the world was in the midst of the Great Depression. In Canada by 1933, 30% Bibliography and References Aaseng, Nathan (1998). Construction: Building the Impossible. Minneapolis, MN: The Oliver Press, Inc. Bascomb, Neal (2003). Higher: A Historic Race to the Sky and the Making of a City.

New York: Doubleday.

Goldman, Jonathan (1980). The Empire State Building Book. New York: St. Martin’s Press James, Theodore, Jr. (1975). The Empire State Building. New York: Harper & Row. Kingwell, Mark (2006). Nearest Thing to Heaven: The Empire State Building and American Dreams. New Haven, CT: Yale University Press.

of the labour force was out of work, and one fifth of the population became dependent on government assistance.

In the U.S., the unemployment reached 25% and 13 million were out of work.

This would translate to a staggering 34 million unemployed Americans today based on the increase in population. In times like this those, people who had jobs obviously worked very hard to keep them. Most people who had jobs knew that if they were to become unemployed the prospects for finding new work were very grim indeed. The men who built the Hoover Dam worked under extremely harsh and very unsafe conditions as evidenced by the more than 100 official deaths. Such a safety record would not be acceptable today. A recent fatality on construction of the Toronto subway

Pacelle, Mitchell (2001). Empire: A Tale of Obsession, Betrayal, and the Battle for an American Icon. New York: Wiley.

Tauranac, John (1995). The Empire State Building: The Making of a Landmark.

New York: Scribner. Wagner, Geraldine B. (2003). Thirteen Months to Go: The Creation of the Empire State Building. San Diego, CA: Thunder Bay Press.

system resulted in a major portion of the project being shut down for three months while the accident was investigated and TTC and the contractor developed a new project safety plan acceptable to the Ontario Ministry of Labour. This single incident resulted in a four month delay to the overall project completion date.

About the author Terry Harron, PQS has been involved with the Canadian construction industry for over 30 years and is currently a senior cost consultant with CRSP Cost Consultants in Burlington, Ontario.

Michele (2002). On the Home Front: The Cold War Legacy of the Hanford Nuclear Site (2nd ed.). Lincoln, NE: University of Nebraska Press. pp. 35-36.

Hanford Cultural Resources Program, U.S. Department of Energy (2002). Hanford Site Historic District: History of the Plutonium Production Facilities, 1943-1990. Columbus, OH: Battelle Press. p. 1.15, 1.30.

Willis, Carol; Friedman, Donald (1998).

Building the Empire State. New York: W.W. Norton.

Empire State Building official Website

Hanford Cultural Resources Program, U.S. Department of Energy (2002). Hanford Site Historic District: History of the Plutonium Production Facilities, 1943-1990. Columbus, OH: Battelle Press.

The Pentagon Official Website

Hoover Dam Official Website

“New Arena Work to Start on Saturday at Midnight”. Toronto Star. May 30, 1931.

Hornby, Lance (October 1, 1998). The Story of Maple Leaf Gardens. Sports Publishing LLC

Congratulations to the following members who have qualified as a PQS or CEC (including reinstatements): CIQS - Ontario

Terence Harron, PQS Suzanne Lardner, PQS Arvindkumar Mishra, PQS Rosmawati Norman, PQS Teresa Purtill, CEC Shameem Rahman, PQS Ahmad Tofighi, PQS Sagara Weeratunga, PQS Ambrose Wong, PQS

CIQS – British Columbia Marc Carn, PQS Adam Polukoshko, CEC Sean Meldrum, PQS Jeannie Simmons, PQS

CIQS Member at Large

Grant B. Owen, PQS Bagavade E. Subramoniam, PQS

CIQS – Prairies and NWT Ryan Devereux, PQS

CIQS - Quebec

Georgeta Andarache, PQS Francis Beaujault, CEC Sylvain Bittner-Lamy, CEC Michel Bolduc, PQS Jean-Pierre Brisson, PQS Fitzroi Fabre, CEC Yi Guo, CEC

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

2014 CIQS CONGRESS SUSTA 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

HOSTED BY

CONGRESS ITINERARY June 19 Welcome Reception • The Welcome Reception will be hosted by CIQS- Prairies and NWT. • All attendees and their accompanying guest are welcome.

June 20 Technical sessions The Technical Presentations will be of a professional standard and are expected to cover topics relevant to the PQS/CEC disciplines. CIQS Members are encouraged to present paper(s) for the event by January 6, 2014. More information can be found at http://www.ciqs.org/english/congress.

The Presentations will be held at the hotel.

Luncheon & Designation Holders Information Session ‘A Year In Review’ The luncheon accompanying the Technical Sessions will be held at the hotel.

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

President’s Dinner This year’s President’s Dinner will be held at Downtown Food (dtf).

Downtown Food is located a short walk from the hotel on Stephen Avenue’s west end theatre district. This modern bistro on 8th is the home to some of the most innovative cuisine in Calgary. A forward thinking restaurant with an eye on sustainability, dtf proudly plays host to our great city’s first fully integrated rooftop ecosystem the urbanagproject from which the restaurant sources its honey and over 40 different types of vegetables, herbs and fruits.

All delegates are encouraged to participate and additional guest registration is available.

June 21 Farewell breakfast A buffet breakfast will be provided on Saturday morning in the hotel for delegates.

Clive Evans Living Golf Tournament Details TBA in early 2014.

BECOME A SPONSOR The 2014 CIQS Congress is a unique opportunity to express your support toward the standardization and supervision of estimation and cost control methods in the delivery of construction projects.

The Canadian Institute of Quantity Surveyors (CIQS) is recognized worldwide for the quality of its members and is responsible for granting Professional Quantity Surveyor (PQS) and Certified Construction Estimator (CEC) accreditations. As a sponsor, your business will be recognized for its innovative character and the rigour of its services and will identify you as a leader in your field.

In Alberta, there are currently over $86 billion dollars of major projects either announced, under construction or nearing

SPONSORSHIP BENEFITS

completion and over $100 million in additional proposed projects. These projects range from Medicine Hat to Fort McMurray and include every sector from oil sands to residential, commercial to transit infrastructure and everything in between.

Be recognized as a leader in the costing industry and let your organization be seen as a leader in the economics of this multibillion dollar industry.

The 2014 CIQS Congress sponsorship program offers a selection of privileges for each level proposed. Your business will be showcased as a leader in the costing industry and will make the most of your advertising budget.

Platinum $5,000

Gold $2,500

Silver $1,000

Bronze $500

Education supporter $500

Recognition on Congress signage

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Opportunity to address the audience at Dinner

✓

Complimentary registrations for Congress

4

2

2

1

3 students

Complimentary registrations for Lunch Friday, June 20

2

2

1

1

Complimentary President’s Dinner Registration

2

1

Publication of your contribution in our quarterly magazine Construction Economist

✓

✓

✓

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Display opportunity to distribute promotional items and inclusion of your promotional documents in the participants’ conference bags.

✓

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Visibility as a partner at the Congress reception and President’s Dinner on June 20 at Downtown Food

✓

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Education supporter As a supporter your firm will support three student registrations* to attend the full congress with the objective to engage the student membership and sustain the profession through insight into costing professions. (*to be eligible the student must be enrolled in a full-time recognized post secondary program and will selected by the accredited schools in the CIQS-Prairies & NWT region.)

Please make your cheque payable to CIQS-Prairies & NWT referencing ‘2013 Congress’ and mail to: Attn: Tanya Doran CIQS-Prairies & NWT Box 34062 Kingsway Mall Edmonton AB T5G 3G4

For more information please contact congress@ciqs-prairies.org

Winter 2013

| www.ciqs.org | CONSTRUCTION ECONOMIST | 19

State-of-the-art indoor velodrome for TORONTO 2015 Games Milton facility remains on budget, on time for opening in 2014 circle of Ontario cyclists helped to officially break ground today on Canada’s new home for cycling: the Milton Pan Am/Parapan Am Velodrome.

Jointly funded by the Government of Canada and the Town of Milton, the facility will officially open in fall 2014 and have the address 2015 Pan Am Boulevard, commemorating the town’s involvement in the ‘People’s Games.’

“In just 15 months, this empty field and high-performance sport in Canada will be transformed with the rising of the velodrome,” said Ian Troop, chief executive officer of the TORONTO 2015 Pan Am/Parapan Am Games Organizing Committee (TO2015).

“Like all of our new venue builds for the Games, the velodrome remains on budget and on time. Shortly after it opens in the fall of 2014, Milton will host its first international competition. This sport’s test event will help us fine-tune our plans for delivering a world-class experience for our athletes and spectators in the summer of 2015.”

Up to 20,000 spectators will watch top cyclists from the 20 | CONSTRUCTION ECONOMIST | www.ciqs.org | Winter 2013

Americas and Caribbean compete in the velodrome – the sole facility of its kind in Canada – during the Pan Am and Parapan Am Games.

Milton’s 250-metre timber track, with two 42-degree banks, is designed to meet the most stringent requirements set by the International Cycling Union (UCI) to hold elite world championships. The nearest indoor facility meeting similar standards is located in Carson, California, where Canada’s top cyclists currently train.

“We have worked hard over the past year with TO2015, the Government of Canada and our community donors, especially Peter Gilgan, to make this dream a reality for Milton,” said Milton Mayor Gordon Krantz. “It is incredibly exciting for all of us to finally see it come together. By the time the velodrome is completed, we will be ready to show the world and the rest of Canada all that Milton has to offer.”

After the TORONTO 2015 Pan Am/Parapan Am Games, the building will be owned and operated by the Town of Milton and will be known as the Mattamy National Cycling Centre.

About TO2015 The TORONTO 2015 Pan Am/Parapan Am Games Organizing Committee (TO2015) is tasked with the responsibility of planning, managing and delivering the Games. Its mission is to ignite the spirit through a celebration of sport and culture.

The TORONTO 2015 Pan American Games will take place July 10−26 and the Parapan American Games August 7-14.

The 2015 Games are funded by the Government of Canada, the Province of Ontario, as well as other partners and sponsors.

CIBC is the Lead Partner of the Games.

The oval-shaped, three-storey, fully accessible velodrome is designed to function as both an international venue for competitive cycling and as a legacy community recreational centre.

For example, when cyclists are training on the track, the three multi-use courts located on the infield or bowl can be used for basketball and volleyball games, while joggers can use the walking track located on the spectator level — all at the same time.

It will also house offices for Cycling Canada and Cycling Ontario, a training lab, fitness centre, multi-purpose space, office space, café/lounge, community bicycle storage, and a retail bike and repair shop.

“Today’s groundbreaking for the Milton Pan Am and Parapan Am Velodrome marks the beginning of a new era for sport in Milton,” said the Honourable Lisa Raitt, Minister of Labour and Member of Parliament (Halton). “The building of this facility will not only allow us to host some of the best cyclists in the world during the 2015 Pan and Parapan American Games, but

will also make Milton a destination of choice for athletes and competitions long after the Games are over.”

The Honourable Bal Gosal, Minister of State (Sport), added, “The Harper Government is a proud supporter of the 2015 Pan and Parapan American Games. We are especially proud to support the building of this velodrome in Milton, which will be Canada’s only indoor cycling facility that meets international specifications. This state-of-the-art facility will give our talented cycling athletes the opportunity to train and compete here in Canada.”

In the past season, the Canadian women’s team pursuit squad won a bronze medal at the 2012 Olympic Games, gold at the World Cup in Aguascalientes, Mexico and bronze at the 2013 UCI Track Cycling World Championships in Minsk, Belarus. On the men’s side, the men’s team sprint won silver in February at the 2013 UCI Pan-American Track Cycling Championships held in Mexico City. Joseph Veloce of Fonthill, ON, also captured silver at the championships in the individual men’s sprint.

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

On budget, on time In 2012, para-cyclist Marie-Claude Molnar won a Paralympic bronze for Canada in London in the individual time trial, capping off her two bronze medals in the threekilometre individual pursuit and the 500-metre time trial at the UCI Para-cycling Track World Championships in Los Angeles. The men’s tandem team also won bronze at the championships in the four-kilometre individual pursuit.

“The People’s Games in Ontario are strengthening infrastructure for sport and recreation across southern Ontario, creating jobs and building communities,” said Michael Chan, Ontario Minister Responsible for the 2015 Pan and Parapan American Games. “This unique world-class velodrome will draw international level competitions, athletes and visitors from around the world, and will also serve as a local base for people of all ages, abilities and with a variety of interests for years after 2015.”

Overall project costs for the velodrome are anticipated to come in at $56 million, which includes $47.4 million to design, build and finance the project. The remainder is comprised of capital expenditures for equipment, transaction fees, project management and other ancillary costs.

“The velodrome will be a centre for cycling athletes of all ages, abilities and aspirations and for people who enjoy all the activities that will be part of this venue’s programming,” said Kevin Flynn, Member of Provincial Parliament for

Oakville. “The venue will be a vibrant, active sport and recreation centre for the Town of Milton and communities across the region.”

In addition to the government funding, the Town of Milton has received a number of private donations from the local cycling community, led by philanthropist and business leader Peter Gilgan.

“As exciting as it is to stand here today, I can only imagine what it will be like for all of us when we first wheel out onto this magnificent track in 2014,” said Peter Gilgan, founder and chief executive officer of Mattamy Homes. “Our entire cycling community is excited about this new velodrome becoming the home of Canadian cycling. It will be amazing when the first Canadian cyclist who trains here wins gold — maybe in 2015!”

For more information about the Games, please visit toronto2015.org.

SOURCE: Toronto 2015 Pan/Parapan American Games For further information: Teddy Katz Director, Media Relations and Chief Spokesperson, TO2015 C: 647.404.5263 teddy.katz@toronto2015.org

The 18th Pacific Association of Quantity Surveyors Congress, PAQS 2014, will be held in the vibrant city of Hong Kong, PRC from Saturday, June 7 to Tuesday, June 10, 2014.

The theme of PAQS 2014 is:

“Think Outside the Box; Meet New Challenges” It gives us great pleasure to announce that the international call for paper submission is now open. The timetable is as follows: January 10, 2014 - Acceptance of Abstracts March 14, 2014 - Full Papers Submission April 14, 2014 - Completion of Paper Reviews May 16, 2014 - Final Papers Submission For further information about the Congress and the excitements that await you in Hong Kong, please visit our website at www.paqs2014.com.

Submission of abstracts and papers will be handled online in the website through designated user accounts.

Any enquiries may be addressed to: paqs2014@mci-group.com (general enquiry) and paqs2014.reghot@mci-group.com (registration/paper submission/hotel accommodation).

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

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

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

Subcontractor and project success

The importance and role of subcontractors Subcontractors form a critical part of the works carried out in the engineering and construction of projects. For the purpose of this article, a subcontractor can be a supplier of materials, equipment and/or services that is/are contracted by another party for the purpose of project delivery.

For example, this relationship can equally apply to the following parties: an owner and a contractor; a contractor and a subcontractor; a subcontractor and a sub-subcontractor or a supplier.

Without solid and reliable subcontractors, successful projects simply cannot be delivered.

Subcontractor performance directly impacts the ability to deliver project drivers that include safety, quality, schedule, cost, reputation and shareholder expectation.

A thorough process to assess the capacity and capability of subcontractors is necessary in addition to contract agreements that position subcontractors to be part of project success.

Over the years there has been a noticeable decrease in the amount of work performed in-house by owners and contactors. This has subsequently increased the tendency to outsource to subcontractors and increased the number and value of works being carried out by subcontractors. For example, it is not unusual for over 90% of the overall value of a project to be carried out by subcontractors. Subcontractors are therefore a key component of project success.

The increased reliance and use of subcontractors is primarily driven by the desire to engage expertise, transfer risk and achieve better pricing by creating an environment of competition and expectation of scope, schedule and price commitment obtained through a competitive process. There is a great appetite to create databases of

subcontractors and a greater desire to obtain even lower prices.

The subcontractor’s problem is everyone’s problem Therefore, considering the important role of subcontractors on projects, it is critical that they succeed. More importantly, potentially known or current failure points should be addressed promptly before contractual agreements are formalized to confirm the arrangements between parties. Often, price becomes an exclusive driver and this can have disastrous consequences on the performance of subcontractors.

Experience on various engineering and construction projects has shown that financially sound subcontractors (at the time of subcontract awards) will normally fail and default on their obligations only if they are:

The key ingredients to deliver successful projects include the need for customers to allocate risks to the parties best placed to handle them, and the certainty of timely payments under the contract. Experience on hundreds of projects over the last couple of decades has also shown the importance of having in place a process that allows for disagreements and concerns to be addressed in a structured and escalated manner.

The 12-Step-Program for contractors Oversight

Dispute Resolution

Security

Allocation of Risk

Key Contractual Terms

Certainty & Conditional Payment

Lump Sum Pricing

Flow Down Terms

Risk of Unexpected Scope

Payment for Changes

Completion Parameters

Extensions of Time

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

• Carrying out work for which they are not being promptly paid; • Carrying out work for which they are not being properly paid; • Suffering from the effects of delays which they cannot recover; • Suffering from the effect of delays that they cannot afford to recover.

Proactive approaches to avoid failure Therefore, in the process of engaging subcontractors there are a number of key considerations that need to be considered to avoid failure, including the following: 1. Allocation of Risk: Subcontract agreement forms should only allocate risk to the subcontractors that are within their capacity to manage, to price and to bear. Subcontract forms should be appropriate to risk profiles such as ‘Services Agreements,’ ‘Minor Works’ and ‘Major Works’ and address compensation mechanisms such as Time and Material, Unit Price and Lump Sum. 2. Key Contractual Terms: Subcontract agreements should contain provisions that deal with notices to confirm lack of performance, set requirements for subcontractors to provide remedial plans and highlight the rights of contractors to terminate part or all of the contract for lack of performance that has not been adequately dealt with by the subcontractor.

3. Certainty and Conditional Payment: Subcontract agreements should include terms that provide for certainty of payment within a specified timescale from the submission of an application for payment and/or invoice. Unless there are compelling commercial or contractual reasons, ‘pay when paid’ or ‘pay if paid’ should be avoided to give certainty of payment for the works done by such subcontractors.

4. Lump Sum Pricing: By way of example, only subcontractors who are capable of managing the design development risk are required to take

account of scope risk by way of a lump sum price.

5. Flow Down Terms: Where there are certain terms of contractual agreements between the contractor and the owner that are required to be ‘flowed down’ the supply chain, these terms should be contained in the subcontract agreements.

6. Risk of Unexpected Scope: Where possible, enter into subcontracts on the basis of Unit Price remeasureable basis, where the contractor holds the scope risk.

It is nearly always the case that subcontractors carrying out work are paid on the basis of the actual quantity of work they carry out. They will therefore not fail because they have to deal with unexpected scope.

7. Payment for Changes: Promptly evaluate and resolve change orders.

Thus, changes in the subcontract works should be valued promptly and paid fairly in accordance with the subcontract agreement.

8. Completion Parameters: Recognize that parameters set for safety, quality, and time for project completion are generally always aggressive. The subcontractors are required to perform and price performance according to these tight timescales.

9. Extensions of Time: Recognize that delays outside of the control of subcontractors will occur and hence payment provisions should be made in subcontract agreements for subcontractors to recover delays.

10. Security for Performance: Obtain Surety bonds and or Letters of Credit for strategic subcontractors to secure performance where the work is of particular importance and is in excess of a preset financial threshold.

11. Experienced Oversight: Employ project managers who are experienced in monitoring the progress of subcontractor performance and are proactive in assisting them when particular difficulties arise on site. With the

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

appropriate project managers, subcontractors generally avoid catastrophic situations that would cause them to fail.

12. Dispute Resolution: Incorporate a tiered approach to the resolution of disputes so that executives can proactively intervene in any situation where the subcontractor is experiencing particular difficulties.

Notwithstanding the above, the process of identifying, assessing, and selecting, subcontractors should consider their capacity and capability to deliver on contractual commitments and be successful.

This approach will not place the owner or contractor in a predicament whereby the failure of a subcontractor affects their ability to fulfill their own contractual commitments.

Arif Ghaffur, B.Sc (Hons.), PQS, FRICS, MCIArb, is the founder and President of Lakeland Consulting Inc which is a professional services consultancy practice supporting the engineering and construction industries, providing Commercial Management, Staff Augmentation and Dispute Resolution services.

Saad Minhas, BA (Hons), LLB (Hons), has over five years of experience in commercial management with Lakeland Consulting Inc on major projects throughout Canada. He recently completed the Osgoode Certificate in Construction Law and published a paper on construction contracts in the Westminster Law Review.

December Board Meetings Recap

T

he CIQS December Board meetings were held in conjunction with the Construct Canada Show in Toronto.

Staff and the Board manned the CIQS booth at Construct Canada December 4-6; then the Board convened their first meeting of the weekend on Friday afternoon.

Marketing and governance dominated the December meetings. Other reports and discussions took place on Construction Economist, legal education, website, CPD, translations, membership, publications, social media, international relations, staffing and business/long range plan as well as an update on progress of the plans for the 2014 CIQS Congress to be held in Calgary.

Marketing – In 2011, CIQS embarked on rebranding the Institute renaming all the affiliates. New websites were launched, new promotional material was developed and new By-laws were approved changing the structure of CIQS. The Board agreed that it is now time to launch a marketing campaign to recruit new members and show the industry why they should have designation-holder on staff or on their project.

Governance – Following our new model, a second draft of the affiliation agreements was agreed to which will be circulated to the affiliates in short order. Work continues on the national standards (which replaces the Rules and Regulations).

Education – The Board approved a new membership route ‘Professional Experience Pathway’ to CEC and PQS to encourage our current members that have the required academics and work experience and seek certification and to crease our membership by attracting potential members to join CIQS. See David Lai’s Education Report for more details.

Staffing – Shortage of staff is currently being addressed by the staffing committee. The first initiative is to hire a part time webmaster.

By Mark Gardin, PQS, CIQS Chair

Marketing and governance dominated the December meetings.

Discussions are also underway for an education/membership staff person.

CIQS – Ontario graciously invited the CIQS Board to their annual holiday

dinner which allowed the Board to interact with some of our designation holders. Thanks to Chris Court, Chair of GTA Chapter for organizing the event.

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

RICS & CIQS Annual Joint Event

Ontario

CONSTRUCTION & PROJECT MANAGEMENT SEMINAR

Fast Track Design & Construction – Aligning Expectations The first joint event of many On Thursday, November 21, 2013, CIQS – Ontario and the RICS held their inaugural, and soon to be annual, Ontario project management and construction event. This year’s event was entitled Fast Track Design & Construction – Aligning Expectations.

The evening was held at Otello’s Convention Centre in Oakville.

Over 120 people attended the sold out event, which consisted of presentations representing each major stakeholder in the design and construction process. Howard Krupat (Partner, Davis LLP) chaired the event and moderated the panel discussion following each speaker’s presentation.

There were presentations by distinguished speakers including Paul Hughes (SVP, Carillion Canada) who gave an introduction and overview of fast track design and construction in today’s market, David Stewart (Director of Construction, PRISM Partners) spoke on the owners side, John Christie (Director, Parkin Architects) addressed the designers perspective and Roger Howarth (SVP, Aecon Group) provided insight about the contractors issues.

Expectations aligned, met and surpassed The speakers echoed the notion that for design and construction to be successful, there had to be strong relationships, open communication and clear lines of responsibility.

This in turn would enable effective team working between the Owner, Designer, Contractor and Subcontractors allowing for efficient coordination, collaboration and delivery of the project. Having parties that had worked on similar projects previously was seen as being a clear advantage in delivering these complex and challenging projects.

Design and construction projects, by sheer nature of being fast track, required tremendous effort and dedication. The moderator stressed the importance of the contract documents being clear and concise and that the contract provided for a dispute resolution provision that was not only workable but also understood by all. A relevant case study was provided by way of the New Oakville Hospital in Ontario, a 500+ bed P3 project. The event offered networking and breaks for the

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

participants and relevant professional development points.

Some of the noted observations included • Are we asking the end user the right questions about their needs, requirements and expectations and are we recording, confirming and translating the answers into the design?

• Understand and respect the contractual arrangement and implement safeguards and protocols.

• The increasing use of Building Information Modelling is being used to identify constructability issues early on in the process.

• Consider and set up workable dispute resolution mechanisms.

• It was suggested that an alternative phrase to ‘value engineering’ might be ‘innovative Design.’

Submitted by: Daniel Josiah (PGDip, PQS, MRIC S, GSC) CIQS - Ontario Board Member

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In Memoriam Mark Hutchinson (Certificate # 2207) fought a very courageous battle with Melanoma and sadly passed away on the evening of Wednesday, November 20, 2013 with family by his side.

He is survived by his wife Alicia, his son George William, his parents Godfrey and Denise, his sisters Christine and Michelle, his niece Hannah and his nephews Luke and Jacob. He will be greatly missed by family, friends and colleagues across Canada and the UK. His passion for family and life, and for his Quantity Surveying profession, was both contagious and inspirational to anyone that had the fortune to know him.

His contributions through various boards, committees and think tanks will leave a lasting mark on the Real Estate/Property industries. He was recently appointed to the RICS (Royal Institute of Chartered Surveyors) BC Chapter Chair and was a BC Board member of the CIQS (Canadian Institute of Quantity Surveyors).

Mark excelled in everything that he did in life, along with being a wonderful husband and father, he was an amazing musician, an avid fisherman and skier and he had a great love of the outdoors and nature. His father said Mark has not passed away; he has gone fishing and may be away for some time if the fishing is good, as this was his idea of paradise. One day he will return to his beloved son George William and wife Alicia.

His family are deeply grateful for the amazing support and love from family and friends over the recent period. A memorial service was held for Mark on Tuesday, November 26 in North Vancouver. In lieu of flowers, his family requested donations to the Paul Sugar Foundation. Paul Sugar was Mark’s doctor who not only cared for and looked after Mark but he also did the same for Alicia and her mother and to whom they will be eternally grateful. The Paul Sugar Foundation is a new charity which has been set up to help families of cancer patients. When Mark heard about this, he said that once he recovered (as he believed and his family and friends believed right up to the very end) that he would work tirelessly for this foundation.

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