Construction Economist Journal - Spring 2015

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CONSTRUCTION ECONOMIST SPRING 2015

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

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GENDER BARRIER construction industry PM 40065075

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WHAT IS A QUANTITY SURVEYOR?

WHY YOU SHOULD BECOME A QUANTITY SURVEYOR.

www.ciqs.org/english/ what-is-a-quantity-surveyor

www.ciqs.org/english/ why-should-you-become-a-quantity-surveyor

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 scirent, monocommercial cE tramS projects, and residential tneBuild mpoleversus veD ehtLease ni sub-division site servicing. Also covered are Studies, and Life Cycle etatsfor E laboth eR foFeasibility and Market Studies. Costing applications, as well as the methodology ni scimonocE tramS The case study on the Monitoring of Real Estate Loans explains valuation on a “cost to fo tnempoleveD eht complete” basis, insisted on by all lenders, very different from the valuation on a “work etplace” atsE basis laeRexpected by contractors. A simple Reserve Fund Study for done” or “work in a 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.


CONSTRUCTION ECONOMIST SPRING 2015

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 . . . . . . . . . . . . . . . . . ................................. . . . . . . editor@ciqs.org Send Change of Address to: Canadian Institute of Quantity Surveyors 90 Nolan Court, Unit 19, Markham, Ontario L3R 4L9

CIQS Board Chair: Dave Burns, PQS Vice Chair: Craig Bye, PQS Past Chair: Mark Gardin, PQS(F) Secretary/Treasurer and CIQS – British Columbia Rep: Matt Weber, PQS

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

Features CIQS welcomes new staff. . . . . . . . . . . . . . . . . . . . . . . 8 Breaking the gender barrier in the construction industry . 10 CIQS ally Wayne Hand’s new appointment. . . . . . . . . . 13 CIQS strategic plan and governance structure . . . . . . . 14 Construction schedules. . . . . . . . . . . . . . . . . . . . . . 20 CIQS Frank Helyar and Buster Vermeulen Memorial Awards . . . . . . . . . . . . 22 Construction Cost Trends. . . . . . . . . . . . . . . . . . . 23

Registrar and CIQS – Prairies and NWT Rep: Michael Bernier, PQS CIQS - Maritimes Rep: David Dooks, PQS CIQS - Newfoundland and Labrador Rep: Roy Lewis, PQS(F) CIQS - Ontario Rep: Patrick Cantin, PQS Education Administrator: David Lai, PQS(F)

23 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Executive Director’s Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

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. ............. . . . . . Kristy Unrau Advertising Coordinator...... Stefanie Hagidiakow Marketing Manager. .................. . . . . . . . . . Jeff Kutny jeff@kelman.ca 866-985-9789 Publication Mails Agreement #40065075 Send undeliverable addresses to: lauren@kelman.ca

Education Updates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Editor’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 CPD Corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Cover photos: 1 - Natalie Alexander, PQS; 2 - Susan Neil, PQS.

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

CIQS at the international level

I

was recently asked by one of our Designation Holders about CIQS’s international exposure and the groups with which we participate overseas. Specifically, clarifications were sought as to how well the professionals within our organization are represented outside Canada and what benefits our involvement with these foreign groups bring. I thought that these were excellent questions and that it would be prudent to share and explain our various involvements to our Designation Holders, to help CIQS members form a better understanding; and that our affiliations abroad could be better known. CIQS participates as a member primarily on three international organizations which share common interests to our own, specifically related to the profession of quantity surveying. Typically, it is members from our Executive council and our elected Education Director who volunteer to represent us at international forums including the ICEC, CEEC and PAQS. In addition, CIQS has also established a number of direct reciprocity agreements with other foreign professional groups which acknowledge each other’s credentials. However, in the interest of brevity, I shall focus on just the three key international groups mentioned. Canada’s geographic position in the world has provided us with some accommodation with our participation levels, since we are nestled between both the Atlantic and Pacific Oceans. To the east across the Atlantic Ocean, CIQS participates as part of the CEEC Board. The CEEC (Conseil European Des Economistes De la Construction) which serves the European Group of Quantity Surveyors comprises most of the European countries (Great Britain,

France Switzerland, Italy, etc.), but also includes the participation of CIQS from Canada (the only non-European country in the group) to assist in establishing their common standards. CIQS has participated for a number of years with the CEEC forming policies, developing common standards and forging alliances to promote the profession of quantity surveying.

Canada’s quantity surveyors are well represented within these world professional bodies. To the west, CIQS is a key participant of the Pacific Association of Quantity Surveyors (PAQS). PAQS conferences serve primarily the Quantity Surveyor groups along the Pacific Rim, including member countries such as China, Japan, Australia, Malaysia, Brunei and Singapore. Within this organization, Canada through the CIQS has been a key participant. In fact, at this year’s conference to be held in Yokohama, Japan, one of our past CIQS Presidents, Ian Duncan, will take over the group’s leadership as the next President of PAQS. Finally, there is the International Cost Engineering Council (ICEC). The ICEC Council was created with the objective of promoting cooperation among national and multi-national cost engineering, quantity surveying and project management organizations worldwide for their mutual well-being

4 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015

Dave Burns, PQS

and that of their individual members. The ICEC is a non-profit organization of international character the objectives of which are to encourage, promote and develop the science and art of cost engineering, quantity surveying and project management (collectively referred to as the cost management profession), for the public, worldwide. Internationally, Canada’s quantity surveyors are well represented within these world professional bodies through the CIQS’s participation as active members. Not only does the CIQS have a voice in these world congresses, but Canadian quantity surveyors are also well respected by the other member countries through our years of consistent participation and known delivery history. We also hosted a PAQS conference in 2008 (Edmonton) and are now planning for a future event in Vancouver. It is the CIQS’s participation within these international groups that allows us to share a seat at the table where the important decisions that affect the future of our profession are made. Recently, a recuming theme among many of the global member affiliations has been to work towards developing a standardized method of measurement worldwide. Once a standard and consensus is achieved, this international format could be used by world insurance companies, banks and corporations to access comparable relevant cost data, in an effort to promote and facilitate business from country to country. Currently a worldwide standardized method of real estate measurement does not exist. Continued on page 7.


Message du Président du Conseil

L’ICÉC au niveau international

U

n détenteur de désignation m’a récemment questionné à propos de la visibilité internationale de l’ICÉC et les groupes à l’étranger auxquels nous participons. Un certain nombre de clarifications ont été demandées afin de déterminer à quel point les professionnels de notre organisation sont bien représentés à l’extérieur du Canada et quels sont les bénéfices découlant de notre implication au sein de ces groupes étrangers. J’ai constaté que c’étaient d’excellentes questions, et que le partage et l’explication de nos engagements et de nos affiliations à l’étranger s’avèrent importants afin de favoriser la compréhension de ceux-ci chez nos détenteurs de désignation. L’ICÉC participe en tant que membre principalement sur trois organisations internationales qui partagent des intérêts communs, spécifiquement reliés à la profession d’économiste en construction. Généralement, ce sont les membres de notre conseil et notre Directeur de l’éducation élu qui nous représentent lors des forums internationaux. Ceux-ci incluent l’ICEC, le CEEC et l’APEC. De plus, l’ICÉC a élaboré des ententes de réciprocités directes avec un certain nombre de groupes professionnels à l’étranger via une reconnaissance mutuelle des qualifications de chacun. Par souci de brièveté, je vais mettre l’accent sur les trois groupes internationaux qui ont été mentionnés. La position géographique du Canada, soit entre les océans Atlantique et Pacifique, nous a permis de faciliter nos collaborations sur différents plans. À l’est et à travers l’océan Atlantique, l’ICÉC participe au conseil du CEEC (Conseil européen des économistes de la construction). Celle-ci est majoritairement composée de pays européens (Grande-Bretagne, France, Suisse, Italie, etc.) mais inclut également l’ICÉC du Canada, le seul pays non

européen qui participe à ce conseil et qui participe à l’établissement des normes communes. L’ICÉC participe depuis plusieurs années au CEEC afin d’élaborer des politiques, le développement des normes communes et des alliances visant à promouvoir la profession d’économiste en construction. À l’ouest, l’ICÉC est un acteur clé au sein de l’APEC, l’Association Pacifique des économistes en construction. Les conférences de l’APEC servent principalement aux groupes d’économistes en construction présents dans le bassin du Pacifique, incluant les membres de pays tels que la Chine, le Japon, l’Australie, la Malaisie, le Brunei, et la Singapore. Dans cette organisation, le Canada, par l’entremise de l’ICÉC, a été un acteur important. Il est important de mentionner qu’un des anciens présidents de l’ICÉC, Ian Duncan, prendra la relève de ce groupe, il sera nommé président de l’APEC lors de la conférence qui aura lieu cette année à Yokohama au Japon. Finalement, il y a l’ICEC (International Cost Engineering Council). Le Conseil de l’ICEC a été formé avec l’objectif de promouvoir la coopération entre les organisations nationales et internationales de contrôle technique des coûts de la construction, de l’économie de la construction et de la gestion de projet à travers le monde, afin de favoriser le bien-être de ces organisations et de leurs membres. L’ICEC est une organisation internationale à but non lucratif dont les objectifs sont d’encourager, promouvoir et développer la science et l’art du contrôle technique des coûts de la construction, l’économie de la construction et la gestion de projet (communément appelée la profession de la gestion des coûts), pour le public, à l’échelle internationale.

Sur le plan international, les économistes en construction du Canada sont bien représentés auprès de ces entités professionnelles grâce à la participation active de l’ICÉC. Non seulement l’ICÉC a la possibilité de s’exprimer lors de congrès mondiaux, mais les économistes en construction du Canada sont également reconnus par les autres pays membres grâce à notre engagement assidu au fil du temps. Par le passé, nous avons accueilli la conférence de l’APEC à Edmonton en 2008 et nous envisageons actuellement un événement à Vancouver. C’est la participation de l’ICÉC au sein de ces groupes internationaux qui nous permet de siéger à la table où sont prises les décisions importantes se rapportant au futur de notre profession. Dernièrement, plusieurs membres affiliés à l’international s’intéressaient au même thème; celui du développement de normes internationales concernant la méthode de mesure. Lorsqu’un standard et un consensus seront atteints, cette formule internationale pourra être utilisée par des compagnies d’assurances, des banques et des associations à travers le monde et ceux-ci auront accès à des données de coûts comparables, et ce, dans le but de promouvoir et faciliter le commerce entre les pays. Tout est sur le point de changer, car plusieurs pays membres qui participent à l’ICEC, l’APEC et le CEEC, envisagent de rencontrer le FMI (Fonds monétaire international) et la Banque mondiale à Washington, DC en juin de cette année lors d’une réunion inaugurale de l’ICMS (International Construction Measurement Standard Coalition). Il s’agit d’un nouveau regroupement de collaborateurs dont la tâche est d’élaborer des normes internationales de mesures en construction, et ce, pour créer une référence mondiale traduisant les différentes méthodes de mesures existantes, vers une formule commune, reconnue sur le plan international. Suite à la page 7.

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 5


Executive Director’s Message

Member versus Designation Holder – what does it all mean?

F

ollowing the approval of the new CIQS By-laws under the new Canada Not-for-Profit Corporations Act at the Annual General Meeting in 2013, the structure and governance of CIQS has changed. You will now see references to Members of CIQS and CIQS Designation Holders in our communications. I have been asked to explain the difference between a CIQS Member and a CIQS Designation Holder. Members of the Canadian Institute of Quantity Surveyors are the Affiliated Associations.

• Canadian Institute of Quantity Surveyors – British Columbia and Yukon (CIQS – BC) • Canadian Institute of Quantity Surveyors – Prairies and Northwest Territories (CIQS – Prairies) • Canadian Institute of Quantity Surveyors – Ontario (CIQS – Ontario) • Canadian Institute of Quantity Surveyors – Maritimes (CIQS – Maritimes) • Canadian Institute of Quantity Surveyors – Newfoundland and Labrador (CIQS – NL) Each Affiliated Association has a representative on the CIQS National Board. Designation Holders are members of the, Affiliated Associations, i.e. CIQS – Ontario.

Lois Metcalfe

Designation Holders includes all membership categories of CIQS. A Designation Holder could be a: o Professional Quantity Surveyor o Professional Quantity Surveyor (Fellow) o Construction Estimator Certified o Associate o Student In short, Designation Holders are individual people, where as Members and Affiliated Associations are groups of people. For further information on our new governance structure please refer to the article ‘CIQS strategic plan and governance structure’ on page 14 of this issue.

Education Updates

New educational initiatives in early stages

P

erhaps by now you are aware that as of April 1, 2015, all membership applications will be assessed centrally by CIQS and no longer by each Affiliated Association. Assessments will be made by a national membership committee chaired by the CIQS Education Administrator. This will ensure that all applications are assessed uniformly and consistently. New educational initiatives are in the early stages with Red River

College, Southern Alberta Institute of Technology (SAIT) and Niagara College. We are hoping that these new initiatives will result in more accredited programs available for our current and future members. The examination results for the November 2014 examination session are 76% pass, 24% fail and 14 cancellations. When combined with the May 2014 examination results, the overall result for 2014 is 79% pass, 21% fail and 18 cancellations.

6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015

David Lai, PQS (F)

Based on the results of the May 2014 and November 2014 examinations, the CIQS annual awards for 2014 are: • The Frank Helyar Memorial Award for the highest mark (above 75%) in Subject # 302 Measurement of Construction Works – Practical Exam is Mr. Andrew Maxwell from CIQS – Prairies and NWT, and • The Buster Vermeulen Memorial Award for the highest mark (above 75%) in Subject # 308 Cost Planning is Mr. Cameron Pole from CIQS – Prairies and NWT.


CIQS announces new Editor for next issue Arif Ghaffur, PQS

The CIQS Board of Directors is pleased to announce the appointment of Arif Ghaffur, BSc (Hons), PQS, MCIArb, FRICS, as Editor of the Construction Economist. Arif is the Founder and President of Lakeland Consulting Inc. providing commercial management services with a focus on business improvement, contracts management and dispute resolution services. Arif will assume his responsibilities as Editor with the Summer 2015 issue of the Construction Economist. You may reach Arif at editor@ciqs.org.

Continued from page 4

Suite de la page 5

This is now all about to change as various member countries who participate within the ICEC, PAQS and CEEC are all planning to meet with the International Money Fund and World Bank in Washington DC in June of this year to host the inaugural meeting of the International Construction Measurement Standard Coalition (ICMS), a new body of collaborating groups tasked to devise International Construction Measurement Standards to assemble a global benchmark standard for translating the various international measurement methods into a common, internationally recognizable format. The exciting part is that CIQS Designation Holders’ interests are well served in the development of these new world standards, as the CIQS is participating as a founding member of the new ICMS committee and will voice our interests in developing this new standard. In closing, I would like to impress upon our Designation Holders that our successes internationally, thus far, have largely been the result of the volunteerism and participation by our membership at these international events. I would encourage any of our Designation Holders to take advantage of the opportunities presented through attending these professional conferences abroad and remind you that CIQS also has an established program which subsidizes a portion of the attendance costs at PAQS conferences for any Designation Holder who may wish to attend. Please feel free to contact our main office if this is something that interests you.

Le plus intéressant à cet égard est que les détenteurs de désignation de l’ICÉC sont bien servis dans le développement de ces nouvelles normes mondiales, puisque l’ICÉC participe à titre de membre fondateur du nouveau comité ICMS. Nous aurons l’opportunité de faire connaître nos intérêts dans le développement de ces nouvelles normes. En conclusion, je voudrais souligner que nos réussites internationales, jusqu’à présent, sont le résultat du volontariat et de la participation de

nos membres à ces événements internationaux. J’encouragerais nos détenteurs de désignation à tirer avantage des différentes opportunités qui se présentent lors de vos présences aux conférences professionnelles à l’étranger. Je vous rappelle également que l’ICÉC offre un programme qui subventionne une portion des coûts de participation aux conférences de l’APEC pour les détenteurs de désignation qui souhaiterait y assister. N’hésitez pas à communiquer avec le siège social si vous êtes intéressés.

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Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 7


CIQS welcomes new staff L’ICÉC accueil de nouveaux employés By/Par Lois Metcalfe, Executive Director/Directrice Exécutive

Please join me in welcoming two new CIQS staff members. Joignez-vous a moi pour souhaiter la bienvenue à deux nouveaux employés de l’ICÉC. Aliya Karim is our new Administrative Assistant replacing Ishrat Alidina, who retired at the end of December 2014. Aliya holds a degree from the University of Ottawa and has experience working for various non-profit associations. As CIQS has centralized the Designation Holder fee collection and remittance process effective for the 2015/16 membership year, Aliya’s main responsibilities will be processing invoices and renewals for all Designation Holders. In addition, Aliya will be looking after front office reception, fulfilling book orders, exam registration and assisting Designation Holders with inquiries. Aliya Karim est notre nouvelle Adjointe Administrative qui prend la relève de Ishrat Alidina, qui a pris sa retraite à la fin Décembre. Aliya est diplômée de l’Université d’Ottawa et a déjà travaillée pour diverses associations à but non lucratif. Puisque l’ICÉC a centralisé la collecte des frais d’adhésion auprès des détenteurs de désignation et le processus de transfert des fonds en vigueur pour la période d’adhésion 2015/16, la tâche principale d’Aliya sera le traitement des factures et des renouvellements pour tous les détenteurs de désignation. De plus, Aliya s’occupera de l’accueil à la réception du bureau, du traitement des commandes de livres, de l’inscription aux examens et de fournir un soutien aux membres.

In accordance with the CIQS strategic plan, commencing April 1st this year, CIQS will now be looking after all aspects of membership including assessments of diaries. Conformément au plan stratégique de l’ICÉC, commençant le 1er Avril de cette année, l’ICÉC s’occupera désormais de tous les aspects de l’adhésion, incluant l’évaluations des registres tenus par les membres. Sophia Chin You has also joined our staff this month as the CIQS Membership Coordinator. Sophia graduated from York University and was recently employed with Turner and Townsend in Canada. Sophia will be responsible for all aspects of Designation Holder’s memberships including applications, assessments, diaries, etc. She will be working closely with the CIQS National Membership Committee. Sophia Chin You s’est joint à notre personnel ce mois-ci en tant que coordonnatrice des membres de l’ICÉC. Sophia est diplômée de l’Université York et a sept ans d’expérience dans le secteur de la consultation des coûts. Sophia sera responsable de tous les aspects de l’adhésion pour les détenteurs de désignation, incluant l’évaluation de nouvelles applications, le suivi des registres, etc... Elle travaillera en étroite collaboration avec le Comité national des membres de l’ICÉC.

You may reach Aliya at assistant@ciqs.org; 905-477-0008; toll free 1-866-345-1168.

Sophia may be reached at membership@ciqs.org; 905-477-0008; toll free 1-866-345-1168.

Vous pouvez joindre Aliya à l’adresse assistant@ciqs.org; ou au (905) 477-0008, sans-frais 1-866-345-1168.

Vous pouvez contacter Sophia à l’adresse membership@ciqs.org; ou au (905) 477-0008; sans-frais 1-866-345-1168.

8 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015


In addition to our two new staff members, CIQS is fortunate to have Patrice Beaulieu on board as our Web Administrator. Patrice is responsible for keeping the CIQS English and French website current, solving any technical issues, training staff, new website modules, etc. Outre les deux nouveaux membres de notre personnel, l’ICÉC a le privilège d’avoir Patrice Beaulieu dans son équipe à titre d’Administrateur Web. Patrice est responsable de la mise à jour continue du site anglais et français de l’ICÉC, de résoudre les problèmes techniques, la formation du personnel, des nouveaux modules Web, etc.

As well, CIQS also retains a part-time Bookkeeper, Debbie Papadopoulos. De même, l’ICÉC retient également les services d’un comptable à temps partiel, Debbie Papadopoulos. I continue to serve you as your CIQS Executive Director until my imminent retirement at the 2016 CIQS Congress. Je continue à vous servir en tant que Directrice Exécutive de l’ICÉC jusqu’à ma retraite imminente au Congrès 2016 de l’ICÉC.

Patrice may be reached at webadmin@ciqs.org.

I may be reached at execdir@ciqs.org; 905-477-0008; toll free 1-866-345-1168.

Vous pouvez joindre Patrice à l’adresse webadmin@ciqs.org.

Vous pouvez me joindre à l’adresse execdir@ciqs.org; ou au (905) 477-0008; sans frais 1-866-345-1168.

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 9


Breaking the

GENDER BARRIER construction industry IN THE

Two quantity surveyors from two generations take measure of being a woman in the profession. Construction is one of the most male-dominated industries. According to a Statistics Canada report, the percentage of women in ‘trades, transport and construction’ tripled from 1987 to 2009. Of course, it went from only 2% to a still small minority of 6%. While somewhat higher in the professional trades – such as architecture, engineering, and quantity 10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015

surveying – there is room for growth. In fact, with Baby Boomers retiring and a sudden shortage of laborers and professionals in construction, a female talent pool may be one of the key sources for infill. The Canadian Institute of Quantity Surveyors has always welcomed women and looks forward to their numbers continuing to grow in the future. In tribute to that goal, we asked Susan Neil, PQS and Natalie Alexander, PQS to speak about their experiences in the industry.


Susan Neil, PQS is an Executive Vice President, part owner, and Chairman of the Board for Hanscomb, a cost consulting firm that has been in operation for almost 60 years and has eight offices in Canada. She has been a quantity surveyor for 25 years with Hanscomb and gained her PQS designation in 2004. How did you decide to become a quantity surveyor? My mother was a working mom and she encouraged me to take on a profession. She saw me do well in school and that I had potential in math and sciences. With her encouragement, I first planned to go into dentistry. But in my third year, as I was completing my BSc, it dawned on me that I did not want to look into people’s mouths for the rest of my life! I loved to draw, so someone suggested architecture. As a young woman in high school, this was a profession that had never been brought to my attention in career counseling. I got accepted to Ryerson, and a year later switched my focus to project management. In my fourth year, I wrote my thesis on the topic of women in construction. While the numbers were very low, the women that I spoke to loved what they were doing and felt that the male population was supportive – you just had to take that leap of faith and jump in. Once you were there, it was not the fight you thought it was going to be. What was your first experience as a woman on the job? When I began at Hanscomb, it was intimidating. Aside from administrative staff, I was the only female QS in the office. As I started developing into a senior QS, I was tasked specifically with growing the health care sector of our business. I pursued it aggressively and got access to meetings with hospital boards and government organizations. In retrospect, choosing

that sector was wise because there is coincidentally a fair bit of female representation. These women were strong and supportive and demonstrated that there was a solid place for women in executive positions. But this realization took time. In fact, in my early days, I cut my hair short so I would be taken seriously at meetings. When I was appointed to the board, our CFO (a male) leaned over and said, “Okay, we take you seriously now. You can grow your hair back.” And I did! He has been a great advocate for me over the years. Looking back on my career, I believe that as long as you stay true to yourself, enjoy what you are doing, work hard and are capable of carrying yourself with confidence, eventually people will respect you no matter your gender. Were you able to find a network of women? There was support amongst women when I started out, with whom you could exchange stories about being a minority. I was fortunate that within our company, the former CFO was a woman. A turning point for me in my career was when she took me out for lunch and told me that she saw me one day sitting on the firm’s board. That was an empowering moment that has stayed with me throughout my career. And now that I am in that position, I have done the same thing with women junior to me. I think it is important to encourage and motivate young women. And what about within CIQS? CIQS is fantastic for networking, and the women within CIQS are supportive of each other. The meetings are still predominantly male, so reaching out to women is important. At a recent AGM, during a networking session I exchanged stories with a colleague who was pregnant and moving up at her company. We work for competing firms, but there is camaraderie. Women need to know that you can take on a career and have a family. It is hard work trying to balance it all but it can be extremely fulfilling.

Natalie Alexander, PQS began her career in quantity surveying in 2007, and now works as a Construction Project Manager with the newlyformed condo development department of Structural Group, where she manages the construction team and several construction sub-trades. She earned her Professional Quantity Surveyor designation in 2010. Why did you pick quantity surveying as a career? Believe it or not, ever since I was eight years old I knew I wanted to be part of the construction industry. I had an uncle at home who is a civil engineer and I was very curious about his work. Seeing him complete construction drawings on velum paper over his drawing board (what is considered today as ‘old school’) truly sparked my interest. When I saw him walking with those blueprints in hand and wearing his white hat, I knew I wanted to do that. At eight years old I was not sure what ‘that’ was, but I still knew I wanted to do it! As I became older, the interest remained and matured.

“Believe it or not, ever since I was eight years old I knew I wanted to be part of the construction industry.”

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11


Were people skeptical that a young woman would want to do that kind of work? Yes, sometimes I did get the ‘Really? Are you sure?’ questions. When I began my educational journey, I had first identified architecture as my career goal and some people would say, ‘I see you more as an interior designer,’ trying to feminize my interest. I immigrated to Canada from a small island – St. Lucia – where many people are not blessed with the opportunities and means to chase after their dreams. But I had a certain determination and courage to follow my dreams. Today, I continue to defy the expectations that others try to set for me. Did you find being a woman posed any challenges? When I first started in the industry, I felt very welcomed even as a Junior Quantity Surveyor at O’Keefe and Associates. I certainly felt no intimidation as a woman. But that may have been due to the fact that my first job was in a very corporate environment. Once I became more involved in the hard construction side of the projects – engaged with managing the construction sites – project managers, project coordinators and sub contractors tried very hard to belittle and undermine me. It was most definitely a cultural shock! However, I have always had a very positive outlook on life.

So I always welcome every experience as an opportunity to grow. As difficult and as disrespectful as some people may have been to me in the beginning, I have grown to learn that construction has its own distinct culture that one must simply get to know and understand how to navigate. I believe that is one of the elements that have helped me succeed; I now understand the culture. And has the reaction to you being there changed? I have been working very hard in the industry for just over seven years now so I have earned a lot of trust and respect from industry professionals and colleagues. And to be honest, I do not really place any emphasis on my gender or racial identity within my occupation. I do not think it is my duty to bear any unnecessary burden by categorizing myself as an object to be placed in a box. So when I walk into a room, I walk in with confidence as a qualified industry professional who has earned the right to be there by my own merit. How has CIQS supported your career? The CIQS network has helped me in many ways. The institute’s educational repertoire is very solid. Because of this, I was able to focus on the areas, courses, seminars, and certifications that were relevant to areas I wanted

to specialize in. There are a lot of opportunities for professionals to grow within CIQS if you reach out and become more engaged. Over the past four years, I have been a technical session presenter twice at the AGM, and those papers were both published in Construction Economist. Another proud achievement for me was being the first Canadian representative to be accepted to present a technical research paper at the Pacific Association of Quantity Surveyors (PAQS), which took place in Hong Kong last year. And yes, I am still beaming with joy about this achievement!

“The Canadian Institute of Quantity Surveyors has always welcomed women and looks forward to their numbers continuing to grow in the future.”

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CIQS ally

WAYNE HAND’s new appointment

One of the team behind a successful accreditation program out west moves up at BCIT

W

ayne Hand, a great supporter of the quantity surveying profession in Canada, has been appointed Dean of the British Columbia Institute of Technology’s School of Construction and the Environment. Previously an Associate Dean of Building Design and Construction Technology at the school for 15 years, in 2011, Wayne successfully collaborated with the Canadian Institute of Quantity Surveyors to create programming at BCIT that can earn students the educational credits required to earn PQS and CEC designations. The process towards that accreditation agreement started in 2009 and was made official only two years later. Wayne says it all began when major players on BCIT’s Construction Management Program Advisory Committee started talking about the challenge of finding estimators who had skills to assess projects from the initial phases of a project through to the end. “There had been a shift in the construction industry,” he explained. “Contractors were getting involved earlier and earlier with models like P3 and Design Build and so they were putting pricing together at the conceptual stage.” Graduating more students with a PQS designation, he quickly realized, could help fill that void. Now, in 2015, students who complete the Economics options within the Architectural and Building Technology

diploma (ABT) program and then complete the Bachelor of Technology in Construction Management are able to fulfill all of the educational requirements towards a PQS designation. Three estimating-specific modules created in tandem with CIQS are part of that curriculum. Furthermore, a year ago Wayne was also involved in setting up a part-time offering – the Certificate in Construction Estimating – which fulfills the CIQS educational requirements towards the CEC designation. Since it’s implementation, the accreditation has been an asset to both BCIT and CIQS. “The agreement helped us attract instructors who were qualified through CIQS, which has added credibility to the program,” says Wayne, adding that CIQS members are also active on BCIT’s advisory committee for estimating courses. “We meet regularly to review our programming and talk about the direction of the industry so we can be thinking about future offerings.” Meanwhile, CIQS has been involved in industry nights at BCIT, during which students can engage in information sessions to learn more about quantity surveying and how to break into the profession. Likewise, BCIT is always exploring ways for its students to be a part of events hosted by CIQS-BC. According to Wayne, enrollment in the new programs has been increasing each year. Also rising, he says, is the need for cost consultant professionals in

His hard work and dedication helped grow this profession and he has blazed a trail for new quantity surveyors to be educated and become professionals in an efficient manner.”

British Columbia – natural gas pipeline construction, the upcoming Site C hydroelectric dam, and retiring Baby Boomers will all fuel a demand for the next generation of quantity surveyors. “We are thrilled about Wayne’s new appointment,” said Matt Weber, current president of CIQS-BC. “His hard work and dedication helped grow this profession and he has blazed a trail for new quantity surveyors to be educated and become professionals in an efficient manner.” The accreditation agreement with BCIT was the first outside of Ontario, and Matt says he anticipates more will follow suit in the coming years.

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CIQS strategic plan and governance structure THIS ARTICLE EXPLAINS, IN A VERY HIGH LEVEL, A BRIEF SUMMARY OF THE CIQS STRATEGIC PLAN AND REVIEWS THE CIQS GOVERNANCE STRUCTURE WHICH HAS BEEN SETUP TO ALIGN WITH THE OBJECTIVES OF OUR STRATEGIC PLAN AND WHICH OPERATES FOR THE BENEFIT OF ALL DESIGNATION HOLDERS ACROSS CANADA. NOTICE TO ALL DESIGNATION HOLDERS RE MEMBERSHIP In accordance with the CIQS strategic plan to foster more consistency within our organization and strengthen our standards, commencing April 1, 2015, CIQS (national) will oversee all membership matters including assessment of new applications, diary reviews, etc. previously undertaken by each Affiliate. We are currently working with the affiliates to transition these membership activities to CIQS and the affiliates are in the process of transferring the information collected at the affiliate office to CIQS head office.

Individuals should contact the CIQS Membership Co-ordinator, Sophie Chin You at membership@ciqs.org with any requests regarding their specific file. If you have any general questions regarding this transition, please do not hesitate to contact Lois Metcalfe, Executive Director at execdir@ciqs.org. Change in law and strategic plan In 2009, the Government of Canada adopted the Canada Not-for-Profit Corporations Act and required all federal non-share capital corporations (including CIQS) to transition to this new law by October 2014, or be dissolved. CIQS engaged legal counsel specializing in ‘Not for Profit’ corporate law to assist in implementing the changes needed to ensure CIQS was not dissolved. Upon reviewing the CIQS governance structure, legal counsel asked a fundamental question: whether CIQS ought to be an association of affiliates (otherwise known as an association of associations), or an association of members. After considerable discussions over many months, the CIQS National Council decided to become a true association of affiliates, with each affiliate having one vote, and one nominee to the CIQS

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National Council table, in an attempt to move to a structure that encourages a national approach to decision making as CIQS decisions typically have an impact across Canada (rather than an association of individual members model where each individual has one vote, which is a structure that could be easily manipulated to favour the interests of Designation Holders in territories with many members, over territories with fewer members). This decision was not taken lightly – it was made in conjunction with the decision to embrace a new strategic plan that is based on the core belief that a coordinated, professional and national approach to key CIQS activities will enhance the reputation and credibility of all Designation Holders across Canada, and at the same time reduce administrative costs for all Designation Holders across Canada. CIQS-Quebec participated throughout these discussions, and agreed to the strategic plan and governance changes, which were ratified by a unanimous vote at the 2013 AGM. Our governance structure now reflects this strategic plan, key aspects of which we summarize below:


The Role of National Council, and the Rights and Responsibilities of CIQS and each Affiliate National Council is the board of directors of CIQS, and its structure is embedded in the CIQS by-laws. Each affiliate annually selects a nominee to serve on National Council through whatever democratic, transparent and accountable process the affiliate determines is appropriate in its jurisdiction. Each individual on National Council, as a director of CIQS, owes a fiduciary duty to act in the best interest of CIQS when making decisions, which means the decisions made by National Council must always be made with a view to the needs of CIQS as a whole, not simply what is in the interest of the directors’ own jurisdiction. Deliberately designing National Council so it is comprised of one nominee from each territory allows for vigorous debate, cross-cutting perspectives, and solid decisions that are in the best interest of CIQS as a whole. National Council has broad authority over the activities and affairs of CIQS. However, to provide long-term certainty and stability to the governance structure, and to be consistent with past practice (CIQS and its affiliates currently have affiliate agreements in place – but these agreements are not consistent with the current governance model, therefore must be amended), National Council adopted a new form of affiliate agreement that is intended to clearly delineate the rights and responsibilities of CIQS from those of each affiliate. Concepts in the affiliate agreement include exclusive recognition by CIQS of the affiliate in its territorial jurisdiction, recognition by the affiliate of the role of National Council, the granting by CIQS to each affiliate of a licence to use certain CIQS intellectual property, confirmation of the flow of funds from Designation Holders to CIQS to affiliates, record keeping roles and responsibilities, and other matters. These new affiliate agreements are intended to be in place over a long-term, and therefore are drafted in a manner

that is principles-based rather than prescriptive. Given the strategic plan and the structure of National Council, areas of the relationship between CIQS and its affiliates which are expected to evolve over time are left to the discretion of National Council, the theory being National Council is in the best position to collectively decide what is in the best interest of Designation Holders across Canada. One important example of this concept in action is the new National Standards. National Standards are intended to be applied uniformly across Canada, so the public has confidence a Designation Holder in Quebec and a Designation Holder in British Columbia have the same competency and are governed by the same rules. As National Standards need to evolve over time, National Council has the discretion to approve these changes, and directors have a legal fiduciary duty to act in a prudent manner when making these decisions. National Council also recognizes that while a standard form applicable nationally is desirable, there are unique features of some jurisdictions that deserve a unique response. For instance, provincial laws are acknowledged to be an area where some customization of the affiliate agreement may be warranted. CIQS has gone through many months of consultation with affiliates, and the current form of affiliation agreement reflects meaningful input from various affiliates. The roles and responsibilities of Designation Holders Prior to the Montreal AGM in 2013, individual CIQS members were members of CIQS national as well as members of their regional affiliate. Members could attend affiliate AGMs and vote on matters, and if they wished to attend and vote at national AGMs, they could do so. Following the Montreal AGM, the affiliates became the only members of CIQS. Designation Holders are no longer directly members of CIQS, they exercise their oversight function through participating in their local affiliate’s democratic

processes (including electing or removing their nominee from National Council). Designation Holders also continue to have a direct contractual connection with CIQS through the licence to use their respective designations, which is renewed annually. CIQS holds and maintains the legal right to the CEC and PQS designations and permits the use of these designations by Designation Holders in good standing who follow the National Standards. Strategic Plan successes While the transition to the new governance structure and processes has been slow and admittedly not free from ‘glitches,’ CIQS has had several excellent successes and intends to stay true to executing the plan to ensure full implementation. • We have moved to a single CIQS national brand, to reduce confusion and strengthen brand-recognition and ensure consistency. • To further promote Designation Holders, CIQS has developed two videos on becoming a quantity surveyor and hiring a quantity surveyor, to create more awareness of the value of the PQS/CEC designations and of the quantity surveying profession generally. • We have created a new modern website encompassing all affiliates into a single source on the web. It showcases our brand and created many efficiencies to benefit the affiliates and Designation Holders, including online Designation Holder payment processing and records updates. When fully implemented this will significantly reduce administrative costs to Designation Holders. • We have adopted National Standards and are in the process of implementing a new centralized Designation Holder application assessment process to ensure consistency in assessing education and experience qualifications,

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irrespective of the area of Canada in which the applicant resides. CIQS has centralized the Designation Holder fee collection and remittance process to ensure efficient and effective administration. Effective 2015/2016, CIQS will receive all payments from each designation holder and pay the affiliates the difference between the total fees collected from the Designation Holders. CIQS will also continue to pay for all website hosting and domain costs, pay for and arrange for all affiliate’s director’s liability insurance to achieve economies of scale, hired additional administration staff to handle the membership invoicing, renewals and membership assessments, will complete all membership assessments and collect all membership assessment

application fees; will pay for marketing materials production, printing and distribution to all of the affiliates, and will pay for all membership dues processing fees (i.e. Visa, American Express, service fees etc.). Overall, and in summary, CIQS is increasing its activities to ensure Designation Holders receive good value for the money invested. A centralized back-office administration system reduces duplication, allows for economies of scale, and improves quality. Centralized processes related to Designation Holder applications and renewals ensure national consistency and enhanced reputation for all Designation Holders. We have not fully completed the implementation of our strategic plan, but we are well on our way, and we hope all Designation Holders see the value in these efforts and continue to support CIQS in these endeavours.

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In closing Although there has been a great deal of structural change at CIQS over the past few years – not much has changed for the individual Designation Holder. You are still able to attend your affiliate AGM. You are still able to attend the national Congress, listen to the year in review, ask questions of National Council, and provide comments and feedback on matters of concern. Your voice also continues to be heard through your representative on National Council. All the recent events and changes to CIQS have been implemented through a fair, democratic, transparent and collaborative process, and the new CIQS governance model has proven to be effective and is working as intended. Every affiliate participates in discussion on matters of national importance and has an equal vote. All decisions are truly being made in the best interest of Designation Holders across Canada.


L’ ICÉC plan stratégique et structure administrative CET ARTICLE PRÉSENTE UN IMPORTANT RÉSUMÉ DU PLAN STRATÉGIQUE DE L’ICÉC, REVOIT LA STRUCTURE ADMINISTRATIVE DE L’ICÉC QUI A ÉTÉ MISE EN OEUVRE AFIN D’ATTEINDRE LES OBJECTIFS DU PLAN STRATÉGIQUE, QUI SONT AU PROFIT DE TOUS LES DÉTENTEURS DE DÉSIGNATION À TRAVERS LE CANADA. AVIS À TOUS LES DÉTENTEURS DE DÉSIGNATION À PROPOS DE L’ADHÉSION Conformément au plan stratégique de l’ICÉC visant à favoriser une meilleure cohérence au sein de notre organisation et de renforcer nos normes, à compter du 1er Avril 2015, L’ICÉC (national) supervisera tous les aspects de l’adhésion incluant l’évaluation des nouvelles applications, le suivi des registres, etc. qui étaient précédemment prises en charge par les affiliés. Nous travaillons présentement avec les affiliées sur la transition des activités d’adhésion à l’ICÉC et les affiliés

procèdent actuellement au transfert des informations recueillies par chaque bureau affilié au siège social de l’ICÉC. Les membres devraient communiquer avec la coordonnatrice des membres de l’ICÉC, Sophie Chin You, à l’adresse membership@ciqs.org pour toutes les demandes concernant leur dossier individuel. Si vous avez des questions d’ordre général sur le processus de transition, n’hésitez pas à contacter Lois Metcalfe, Directrice Exécutive, à l’adresse execdir@ciqs.org. Changement de loi et plan stratégique En réponse à l’adoption de la loi canadienne sur les organismes à but non lucratif adopté par le gouvernement canadien, toutes les corporations à but non lucratif de régime fédéral (incluant l’ICÉC) devaient effectuer une transition pour se conformer à la nouvelle loi avant octobre 2014, ou être dissoutes. L’ICÉC a eu recours à des conseils juridiques spécialisés dans les organismes sans but lucratif afin de bien implanter les changements nécessaires afin d’éviter la dissolution de l’ICÉC. En révisant la structure administrative de l’ICÉC, le conseil juridique a posé une question fondamentale : est-ce que l’ICÉC devait devenir une association

d’affiliés (autrement connu en tant qu’association d’associations) ou bien une association de membres? Suite à de longues discussions sur une période de plusieurs mois, le Conseil national de l’ICÉC a décidé de devenir une association d’associés avec chaque affilié ayant un droit de vote, ainsi qu’un représentant à la table du Conseil national de l’ICÉC dans l’objectif de progresser vers une structure qui encourage une approche national dans la prise de décisions puisque les décisions prises par l’ICÉC ont généralement un impact à travers le Canada (contrairement à une association de membres individuelles où chaque individu détient le droit de vote, une structure qui pourrait facilement être manipulé pour favoriser les intérêts des détenteurs de désignation provenant de régions ayant un plus grand nombre de membres au détriment des régions ayant un plus petit nombre de membres). Cette décision n’a pas été prise à la légère. Elle a été fait en valorisant un nouveau plan stratégique qui est fondé sur la conviction qu’une approche coordonnée, professionnelle et nationale envers les activités clés de l’ICÉC, servira à améliorer la réputation et la crédibilité de tous les détenteurs de désignation

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à travers le Canada, tout en réduisant les coûts administratifs pour tous les détenteurs de désignations à travers le Canada. L’ICÉC – Québec a participé à ces discussions et était en accord avec le plan stratégique et changements administratifs qui avaient été adopté à l’unanimité à l’AGA de 2013. Notre structure administrative reflète maintenant ce plan stratégique dont les aspects clé sont résumés ci-dessous : Le rôle du Conseil national, les droits et responsabilités de l’ICÉC et chaque affilié Le Conseil national est le conseil d’administration de l’ICÉC. Les politiques et règlements de l’ICÉC sont implantés dans sa structure. Chaque affilié sélectionne un candidat pour siéger au Conseil national à travers un processus démocratique, transparent et responsable que l’affilié détermine comme étant approprié au sein de sa juridiction. Chaque individu siégeant au Conseil national, en tant qu’administrateur d’ICÉC, se doit d’agir dans le meilleur des intérêts de l’ICÉC lorsqu’ils prennent une décision. Autrement dit, les décisions prises par le Conseil national doivent toujours être prises en tenant compte des besoins de l’ICÉC dans son ensemble. Les administrateurs ne doivent pas seulement considérer les besoins de leurs propres régions. En ayant un représentant de chaque territoire, des débats dynamiques, des perspectives transversales et des décisions solides qui tiennent compte des besoins globaux de l’ICÉC surgissent. Le Conseil national détient une autorité sur les activités et les affaires de l’ICÉC. Par contre, afin d’assurer une structure administrative ayant une stabilité à long terme, une conformité aux pratiques antérieurs (l’ICÉC et ses affiliés, ont actuellement des accords en place – mais, ces accords ne sont pas conforme avec le modèle administratif qui est actuellement en vigueur, et doivent être modifiés) le Conseil national a adopté une nouvelle forme d’accord d’affiliation qui a

comme objectif de délimiter les droits et responsabilités de l’ICÉC et ceux de chaque affilié. La reconnaissance exclusive de l’affilié par l’ICÉC au sein de son ressort territorial, la reconnaissance du rôle du Conseil national par l’affilié, la permission donnée à chaque affilié d’utiliser certains outils intellectuels, la confirmation de transfert de fonds provenant des détenteurs de désignation et le transfert de ceux-ci vers l’ICÉC et aux affiliés, les rôles et responsabilités actuels en matière de tenue de documents, et autres sujets font tous partie de concepts qui sont inclus dans l’accord des affiliés. Ces nouvelles ententes avec les affiliés sont fondées sur des principes et ne se veut pas prescriptif afin d’assurer la longévité de ces accords. En considérant le plan stratégique et la structure du Conseil national, les domaines couvrant la relation entre l’ICÉC et ses affiliés, qui évolueront dans le temps, ont été laissé à la discrétion du Conseil national, puisque celui-ci occupait la meilleure position afin de prendre des décisions collectives reflétant les intérêts des membres à travers le Canada. Les nouvelles normes nationales sont un bon exemple de ce concept. Les normes nationales ont été mise en place afin d’être appliqués de façon uniforme à travers le Canada dans le but d’encourager une confiance uniforme du public envers les détenteurs de désignation provenant d’autant du Québec que la Colombie - Britannique puisqu’ils sont assujettis aux mêmes normes. Puisque les normes nationales doivent évoluer dans le temps, le Conseil national détient le pouvoir d’approuver ces changements. Les administrateurs ont l’obligation fiduciaire d’agir de façon prudente. Le Conseil national reconnaît également que des normes conformes au niveau national sont souhaitables. Il existe toutefois des particularités au sein de certaines juridictions qui demandent une attention particulière. Par exemple, certains aspects des lois provinciales peuvent justifier la personnalisation

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de l’accord d’affiliation. L’ICÉC a passé de nombreux mois de consultation avec les affiliés et la forme actuelle de l’accord d’affiliation reflète une contribution significative des différents affiliés. Les rôles et responsabilités des détenteurs de désignation Avant l’AGA à Montréal en 2013, les membres individuels de l’ICÉC étaient des membres de l’ICÉC national et des membres de leurs affiliations régionales. Les membres pouvaient assister aux AGA d’affiliations et voter sur des enjeux. Ils avaient aussi le droit d’assister à l’AGA national. Suivant l’AGA à Montréal, les affiliés sont devenus les seuls membres de l’ICÉC. Les détenteurs de désignation n’étaient plus des membres directs de l’ICÉC car ils exerçaient leur fonction de membre en participant au processus démocratique de leur affiliation locale (y compris la nomination et la révocation des représentants au Conseil national). Les détenteurs de désignation continuent également d’entretenir une connexion contractuelle directe avec l’ICÉC par le permis d’utiliser leur désignation respective, qui est renouvelé annuellement. L’ICÉC détient et maintien les droits légaux des désignations ECC et ÉCA, et permet l’utilisation de ces désignations par les détenteurs de désignation qui sont en règles et suivant les normes nationales. Les succès du plan stratégique Tandis que le processus de transition vers la nouvelle structure d’administration a été lent et certes pas sans lacunes, l’ICÉC a connu plusieurs succès et à l’intention de rester fidèle à l’exécution du plan afin de s’assurer de la pleine mise en œuvre. • Nous sommes passés à une seule marque nationale de l’ICÉC afin de réduire la confusion, renforcer la reconnaissance de marque et assurer la cohérence. • Afin de promouvoir les détenteurs de désignation, l’ICÉC a créé deux vidéos portant sur deux sujets afin de sensibiliser davantage sur la valeur des désignations ÉCA/ ECC et sur la profession d’économiste en construction de façon générale.


Nous avons créé un nouveau site web moderne englobant tous les affiliés sur le web. Il présente notre marque et comprends de nombreux outils dont les membres et affiliés peuvent bénéficier, incluant le processus de paiement et la mise à jour de dossier. Lorsque le tout sera implanté, cela diminuera considérablement les coûts administratifs pour les détenteurs de désignation. Nous avons adoptés des normes nationales et nous visons l’implantation d’un nouveau processus d’application centralisé pour assurer la cohérence dans l’évaluation de la formation et de l’expérience, sans égard à la région du Canada où le demandeur réside. L’ICÉC a centralisé le processus de remise et collection de frais de membres pour assurer une administration efficace. À partir de 2015/2016, l’ICÉC percevra les paiements de tous les détenteurs de désignation et paiera ensuite la différence de ces frais aux affiliés. L’ICÉC continuera de payer les frais liés au site web, paiera pour les frais d’assurance responsabilité de tous les directeurs d’affiliés pour réaliser des économies d’échelle, engagera du personnel pour gérer la facturation aux membres, complétera les renouvellements d’adhésions, les évaluations d’adhésion, et percevra les frais de ceux-ci. De plus, il paiera pour la production de matériel de marketing, l’impression et la distribution à tous les affiliés, et paiera pour tous les frais pour le traitement des cotisations. Globalement, l’ICÉC augmente ses activités afin que les détenteurs de désignation puissent bénéficier de l’argent qu’ils investissent. Un système d’administration centralisé réduit le dédoublement de tâche, permet de faire des économies et améliore la qualité. Ces processus centralisés liés aux demandes et renouvellements des désignations assurent la cohérence nationale et renforce la réputation de tous les membres.

L’implantation de notre plan stratégique n’est pas totalement terminée. Par contre, nous sommes sur la bonne voie et espérons que tous les détenteurs de désignation reconnaissent nos efforts et continuent à supporter l’ICÉC dans ses projets. En conclusion Même si plusieurs changements sont survenus au niveau de la structure de l’ICÉC au cours des dernières années, peu de choses ont changés pour les membres en tant qu’individus. Vous pouvez toujours assister à l’AGA de votre affilié. Vous pouvez toujours assister au Congrès national, entendre le bilan annuel, poser des questions au Conseil

national, faire part de vos commentaires et vos réactions sur les enjeux qui vous concernent. Vous pouvez également vous exprimer par le biais de votre représentant au Conseil national. Tous les événements et les changements de l’ICÉC récents ont eu lieu à travers un processus de justice, de transparence et de collaboration. Le nouveau modèle d’administration de l’ICÉC fait preuve d’efficacité et fonctionne tel que prévue. Chaque affilié participe à des discussions portant sur des enjeux nationaux et détient un vote égal. Toutes les décisions sont prises dans l’intérêt de tous les détenteurs de désignation à travers le Canada.

Important notice Avis important The Canadian Institute of Quantity Surveyors – Quebec (CIQS-Quebec) is no longer a Member (Affiliate) of the Canadian Institute of Quantity Surveyors (CIQS). The group known as Association of Estimators and Quantity Surveyors of Quebec (AEQSQ) has no association or affiliation with the Canadian Institute of Quantity Surveyors. CIQS designation holders (Professional Quantity Surveyors, Construction Estimator Certified, Associates and Students) formerly with CIQS-Quebec will be able to maintain their designation directly with CIQS upon renewal of their annual membership fees paid directly to CIQS. L’Institut Canadien des Économistes en Construction – Québec (ICÉCQuébec) n’est plus Membre (Affilié) de l’Institut Canadien des Économistes en Construction. Le groupe connu sous le nom de «l’Association des Estimateurs et Économistes en Construction du Québec» (AEÉCQ) n’est pas associé ou affilié avec l’Institute Canadien des Économistes en Construction. Les détenteurs de désignation de l’ICÉC (Économistes en Construction Agréé, Estimateur en Construction Certifié, Associés et Étudiants), anciennement rattachés à l’ICÉC-Québec, pourront conserver leur désignation directement avec l’ICÉC suite au renouvellement de leur adhésion en versant les frais annuels directement à l’ICÉC (National).

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 19


CONSTRUCTION SCHEDULES D E V E L O P M E N T, D E L AY A N A LY S I S & B E S T P R A C T I C E S

BASELINE SCHEDULE In preparing a bid, the Contractor estimates the resources (labour, materials, equipment and supervision/ management) necessary to meet the requirements set out in a Request for Proposal (RFP) which details the scope of work to be delivered and the timelines in terms of a schedule. Following award of a contract to the successful Contractor, the detail to which schedule requirements are set out in the contract documents often depend on the approach adopted by the Owner and can vary from a detailed schedule of work to start and end date expectations. It is anticipated that the Contractor will come up with a schedule that is logical, practical and achievable. By way of example, GC3.5 (Construction Schedule) of CCDC2 – 2008 Stipulated Price Contract requires that the Contractor submit a detailed schedule within a prescribed timeframe and states that the Contractor shall (emphasis added): “…prepare and submit to the Owner and the Consultant prior to the first application for payment, a construction schedule that indicates the timing of the major activities of the Work and provides sufficient detail of the critical events and their inter-relationship to demonstrate the Work will be performed in conformity with the Contract Time;” and “…monitor the progress of the Work relative to the construction schedule and update the schedule on a monthly basis or as stipulated by the Contract Documents;”

and “…advise the Consultant of any revisions required to the schedule as the result of extensions of the Contract Time as provided in Part 6 of the General Conditions - CHANGES IN THE WORK.” Upon review and approval by the Owner, the submitted schedule becomes the construction schedule or baseline schedule. Again the level of review scrutiny these schedules undergo varies upon the approach taken by the Owner with some taking a deep look into the intended delivery sequence, timing and methodology. SCHEDULE DEVELOPMENT In developing the schedule and complying with the contract documents, a Contractor is often required to achieve specific expectations which set out the use of proprietary industry standard software and methodology based on utilizing Critical Path Methodology for scheduling a set of tasks that 1) lists all the activities required to complete the project, 2) establishes the duration of each activity, 3) determines the start and end dates of each activity, 4) recognizes the dependencies between activities, and 5) shows the critical path leading to the completion date. SCHEDULE CHANGES The baseline schedule is then used to measure and report performance as the project proceeds, including identifying any delays or improvement opportunities to the contracted dates. Therefore, the accuracy of the baseline schedule is not only critical to the Contractor who has

20 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015

to plan resources but also the Owner who has an expectation in terms of the achievement of completion dates. Notwithstanding schedule reporting which may identify changes to the baseline schedule, Owners sometimes remote themselves from the schedule as they expect the Contractor to be responsible for the ‘means and methods’ and Owners do not wish or perceive to be interfering in the schedule which is deemed to be in the Contractor’s custody. In contrast, Contractors continue to report progress and identify items that are delayed and that may lead them to a remedy under the contract i.e. extension of time and relief from liquidated damages, if they apply. In parallel, the Owner is interested in self-induced Contractor delays and delays that the Owner is not responsible for. The reality is that whilst there is debate about what happened and who is responsible i.e. are the delays down to the Owner, Contractor or shared, the project continues to suffer and an adverse environment sets in as time is money for not only the Owner and Contractor but also others such as Consultants, Sub Contractors who become embroiled in allegations and counter allegations. PROJECT RECORDS As with having a solid baseline schedule and reporting mechanism in place, having a solid record keeping system is also vital for establishing what happened. Fundamentally, there needs to be a way to measure changes in the schedule and project records are a way to assess such changes in parallel with a regularly updated schedule that captures delays.


Records need to be quantitative in nature in order to assess what the actual delay is, along with its potential impact, and should be regularly updated and maintained. As with a schedule, the records should be shared with the project team such that they become contemporaneous information and far more persuasive, if required, in dispute resolution proceedings. Finally, project records should meet the requirements of the contract, in terms of format, content or validation. Specific dates described in the contract should be kept in mind, with all activities monitored with regard to those dates. Further, detailed labour and procurement records should also be maintained. ANALYSIS OF DEL AY There are a number of methods used to analyse delay and the applicability of each depends on the particular circumstance including the complexity of the delay, outcome objectives and remedies under the contract. Sometimes the term Forensic Delay Analysis (FDA) is used to define the analysis of delays to the schedule. Recognizing that each method can justify a paper in its own right, the main FDA methods can be briefly summarized as follows: 1. As-built vs. As-planned This method takes a project’s as built information and compares it with the as planned information in order to check for variances. It is an effective method if a good (logic linked) base schedule is instituted from the very start of the project. Generally, this method is best suited to simple assessments where there is no question on who is liable for the delay. 2. Collapsed As-built This method adopts a factuallybased approach to establish cause and effect and can be used when there is no planned schedule and is used retrospectively. If a Contractor has no planned schedule in place, at the end of the project an as-built schedule can be reconstructed by using detailed as-built information. This method can take account of any concurrent delays.

3. Impacted As-planned This method is typically used if a Contractor has good base schedule that is network linked and accurately reflects logic. This method starts with a baseline schedule and inputs delays or extension of time events into the schedule which then shows the impact on the completion date. Whilst this method can be used both retrospectively and prospectively it does not account for the actual as-built situation. 4. Time Impact Analysis This method requires there to be a good base schedule clearly detailing the critical path which is updated regularly in conjunction with reliable and up to date project records. This method is useful to establish the delays that were not the fault of the Contractor (excusable delays). In this approach, it is vital that any delay is recorded before any mitigation. It is both retrospectively and prospectively applicable. However, time impact analysis it can be complicated and difficult to follow all delays and difficult to communicate. BEST PR ACTICES There is a heightened level of scrutiny of construction schedules, particularly as high profile projects continue to suffer extensive delays that are translating into substantial budget challenges. This is making it necessary to ensure that the schedule is just not considered as another part of the contract documents but also a logical, workable and dynamic decision making tool. Therefore, there are a number of best practices that should be considered: 1. The schedule should use industry recognized software and be a workable management tool that attracts a high degree of trust in order to satisfy the legitimacy and accuracy of its outputs. 2. The schedule should describe the work, display logical links between work activities and define the critical path. Additionally, it should state the start and finish dates of each work activity and access dates for each phase or section.

3. Seasonal shutdowns should be shown. For example, a delay at the start of a project may delay the commencement of activities by pushing the actual start date into the winter shutdown period, precipitating a further delay. 4. Dates for off-site activities, such as those for delivery, design and procurement should be identified. The schedule should also have provisions for floats or time risk allowances to for items which the Contractor is deemed to have considered. 5. Integrating cost analysis into a schedule provides greater control in tracking costs already or potentially incurred throughout the time period of the project. By cost coding the schedule, work packages are able to be filtered allowing for more detailed analysis. 6. In the event that a schedule analysis is necessary and in advance of carrying out such an analysis, there should be a good understanding of the integrity of the baseline schedule (if there is one) and the outcome objective of the schedule analysis exercise. 7. A detailed schedule analysis for the purpose of arbitration or litigation may take a different form to a detailed schedule analysis submitted for the purpose of illustration which is aimed at a negotiated settlement. Finally, the data from the baseline schedule and any schedule updates should be shared with the project team to ensure that these become part of the contemporary project records. Recognizing that each project has different schedule expectations, the construction schedule is a key component of project delivery and project participants should make themselves familiar with this document. About the author: Arif Ghaffur, B.Sc (Hons.), PQS, FRICS, MCIArb, is the Founder and President of Lakeland Consulting Inc providing Commercial Management Services with a focus on Business Improvement, Contracts Management and Dispute Resolution Services.

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 21


CIQS Frank Helyar and Buster Vermeulen Memorial Awards

I

n 1990, CIQS Council created the Frank Helyar Award Fund when Frank generously returned his honorarium for setting and marking examinations to the Institute requesting that it be put towards ‘education.’ Initially the award was given for the highest mark in Subject # 202 Measurement of Construction Works II and # 302 Measurement of Construction Works Practical. The award is now given to the candidate with the highest mark (above 75%) in Subject # 302 Measurement of Construction Works Practical each year. In 2001, the award was renamed the ‘Frank Helyar Memorial Award Fund’ on the death of Past President and Founding Member Frank Helyar. In 2003, a second award was created in memory of CIQS Past President, Buster Vermeulen. This award was named the ‘Buster Vermeulen Memorial Award’ and is given to the candidate with the highest mark (above 75%) in Subject # 308 Cost Planning. We are pleased to announce the winners of the 2014 Awards. Both recipients hail from Calgary, Alberta. Congratulations to Cameron Pole, CEC who won the 2014 Buster Vermeulen Memorial Award and congratulations to Andrew Maxwell who won the 2014 Frank Helyar Memorial Award. Cameron works for Aquarius Building Consultants and Andrew is with Cuthbert Smith Group. Chair, Dave Burns, was on hand to present Cameron and Andrew with their awards. The award continues to grow due to the generosity of Designation Holders’ donations.

Dave Burns and Andrew Maxwell (above). Dave Burns and Cameron Pole (below).

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22 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015 Projet : Annonce TDI 2015

Province : Ontario Publication : Construction Economist

Épreuve # : 1


“The lower rate serves to dampen inflation, which should also help to keep overall construction escalation low in 2015.”

CONSTRUCTION COST TRENDS THE FOLLOWING IS A SUMMARY OF THE BTY MARKET INTELLIGENCE REPORT

LOWER COST ESCALATION AND EASING LABOUR DEMAND A lower oil price notwithstanding, the continuing flow of people to and investment in Canada will help keep workloads stable in 2015. Sustained investment in the energy sector in particular – hydro, oil and gas, and renewables – will combine with a steady stream of immigrants that supports residential demand to power steady growth in the construction industry. An estimated $675 billion worth of projects – 75% of them in the energy sector – are underway or planned over the next decade. The lower oil price and legal and environmental challenges may cause delays, but long- term, the tide is rising for oil and gas, liquid natural gas, and hydroelectric as well as renewable energy projects. About half of the foreign direct investment in Canada – an estimated $343 billion in 2013 – went to manufacturing, oil and gas and mining. The lower loonie will only increase Canada’s appeal to foreign investors. Continuing high levels of immigration targeted at 285,000 in 2015 – and a total of more than 2 million since 2006 – are also supporting Canada’s position as a construction powerhouse. These newcomers drive our 1.2% annual population growth, almost double that of the U.S., and support robust residential construction, especially in the core of large urban centres as more and more people move downtown. The projections for stable housing starts reflect the steady influx: 189,000 units in 2014 and 189,500 in 2015. Construction will remain strong in BC, while activity levels settle back from record levels of prior years in Alberta and Saskatchewan. The silver lining there is much lower cost escalation and easing labour demand for skilled trades. Bolstered by increasing demand from a strengthening U.S. economy, a lower loonie that favours manufacturing exports, continued infrastructure and other non-residential spending,

DOWNWARD PRESSURE IS COMING FROM: • Forecast for continued modest economic growth • Lower oil prices • Softer commodity prices (except lumber) that could cause a decrease in materials costs • Tighter restrictions on mortgage lending

UPWARD PRESSURE ON PRICING IS COMING FROM: • A weakening Canadian dollar, raising the cost of imported goods • Sustained spending on infrastructure • Continuing strong immigration • Low interprovincial migration of skilled trades to meet regional demand

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 23


CONSTRUCTION COST TRENDS Escalation Summary

Ontario 2014 : 1-2 % 2015 : 2-4 % 2016 : 2-4 %

British Columbia 2014 : 1-2 % 2015 : 1-2 % 2016 : 2-4 %

Alberta 2014 : 1-2 % 2015 : 0-2 % 2016 : 0-2 %

Saskatchewan 2014 : 1-2 % 2015 : 0-2 % 2016 : 1-2 %

Quebec 2014 : 1-2 % 2015 : 1-3 % 2016 : 2-3 %

Manitoba 2014 : 1-2 % 2015 : 1-2 % 2016 : 2-3 %

Atlantic Canada 2014 : 1-2 % 2015 : 0-2 % 2016 : 0-2 %

and resilient residential sectors in their big cities, Ontario and Quebec will see accelerated growth, as will Manitoba. Atlantic Canada is again seeing record investment in major projects, but the lower oil price in Newfoundland and Labrador, and population losses elsewhere, sap the vitality of overall construction activity. The consensus view among major banks is that Canada’s GDP growth in 2015 will be closer to 2.1% than earlier forecasts of 2.5%. The Bank of Canada is expected to continue to keep interest rates at or near the historic lows of the past halfdecade, at least until the second half of 2015. The lower rate serves to dampen inflation, which should also help to keep overall construction escalation low in 2015. ONTARIO Ontario set to surge with boost from lower loonie Ontario will be the big winner with lower priced oil, a lower dollar and interest rates, and its location close to major U.S. markets as the U.S. economy revs up. Expect these factors to work together to boost the province’s manufacturing and exports and make it Canada’s growth leader. Strong non-residential building and a still robust housing sector – undergirded by major transportation and social infrastructure projects – will further contribute to Ontario’s healthy construction levels as the economy gains momentum. The condominium market in the GTA remains strong, driven in part by the high cost of single-family homes in and around

the core and a very robust condo rental market. The need for affordable housing is driving a growing number of purpose built, multi-unit residential rental developments. Retail is expected to perform well in the core as developers look for opportunities to provide residents with services and amenities that they demand. High-end retailer Nordstrom figures prominently in mall expansion and redevelopment across the GTA; it will have new stores in four out of six major mall renewal projects now underway. Some $15 billion in provincial funding for transit infrastructure in the GTHA, and $14 billion for transportation infrastructure outside the GTHA, are the construction industry mainstays. Big-ticket items include Eglinton Crosstown Light Rail Transit, Spadina Subway Extension, and the Union Station Revitalization. The Mayor of Toronto’s vision for SmartTrack, a 53km surface subway, 90% of which will be on existing GO Train tracks, will also be a significant investment within the GTA over the next few years. Other major transportation projects include Ottawa Light Rail, Kitchener Waterloo Cambridge Rapid Transit and the International Trade Crossing between Windsor and Detroit. The new $810 million Providence Care Hospital in Kingston leads the list of projects underway in social infrastructure, which includes the $2 billion Oakville and $1.75 billion Humber River Hospitals as well as funding for dozens of projects at colleges and universities. Net migration to Ontario is expected to rise from 82,500 in 2014 to 93,200 in 2015 and 98,800 net migrants by 2016. That increase, spurred by growth in net international migration that is expected to double from 5% in 2014 to 10% in 2015, should help sustain demand for new housing and the prevailing urbanization of the downtown core. Even with the moderating effect of rising higher interest rates projected for late 2015, housing starts are expected to increase from 59,200 in 2014 to 63,000 in 2015. The multi-year Buttonville Redevelopment and the West Don Lands in the GTA exemplify the continuing strengths of the commercial and residential sectors. Buttonville comprises 9 million to 10 million square feet of mixed-use space, while the West Don Lands will have 6,000 residential units.

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24 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015

Stay Connected Did you know the CIQS is now on Twitter and LinkedIn? If you want to stay connected and contribute to discussions across Canada, follow us on Twitter or join our LinkedIn Group. We look forward to hearing from you.


Office projects such as 1 York, 100 Adelaide West, and the Bay Adelaide East Tower are some of the more high profile projects of the more than 5.9 million square feet of commercial space under construction in downtown Toronto. Tenants continue to search for a way to reduce their office footprint as more collaborative working environments are designed and implemented on new fit-out projects. As tenants continue to move to new buildings in the downtown core, a high vacancy rate may affect older office stock. But as businesses start moving back to the core, it is expected that this added capacity will be soaked up. New wind power projects are making Ontario a global leader in renewable energy generation. Major new efforts include Kingston Solar Park, the latest in Samsung’s $5 billion investment in solar and wind energy, and the $580 million Armow Wind Project, in which Samsung is partnering with Pattern Energy Group. Longer term nuclear and natural gas energy projects are working their way through the approvals process. The development of the mineral-rich Ring of Fire in northern Ontario has also stalled as financing and approvals for roads to remote mine sites have yet to be finalized. Overall, the province’s economy is forecast to grow from between 2.8% and 3.1% in 2015.

with more than $1 billion worth of projects in downtown, and three major mall renewals planned or underway. Major projects include the $398 million Trump Tower, which will be the city’s second tallest, and the $200 million Exchange tower. Strong demand for larger industrial spaces in suburban Metro Vancouver, driven in part by improved port and transportation infrastructure, will see sustained activity despite high land and development costs. Overall, there are some 20 major commercial developments in the planning or rezoning stages in the region. The Surrey City Centre expansion alone will see 10 more towers over the next decade, as well as a five-star hotel and performing arts centre. Exports to international markets and other Canadian provinces will also drive healthy near term expansion. The favourable Canadian dollar and U.S. growth are forecast to give exports a significant boost, and drive industrial and commercial investment. Buoyed by the U.S. housing market expansion and continuing growth in exports to Asian markets, BC’s forestry and wood products sector, in particular, will be a significant engine for the provincial economy. Bank forecasts are for economic growth from between 2.7% and 2.9% in 2015.

BRITISH COLUMBIA Major energy projects powering upswing in BC Major utility, mining, LNG terminal, and pipeline projects are expected to ramp up over the next two years, ushering in an upswing in construction. Many of the projects, such as the newly approved Site C dam and proposed LNG projects, are located in northern BC and valued in the billions. They are expected to generate significant demand for skilled labour, putting upward pressure on labour costs. The optimistic outlook remains despite uncertainty over the timing of specific projects such as proposed LNG plants, and potential implications for pipeline and resource developments following the Supreme Court’s June ruling on native land claims. At the same time, major new provincial infrastructure projects are either underway or in the planning stages. These include major airport and port expansions, two new hospitals valued at $600 million in northern Vancouver Island, a new $200 million correctional centre in the Okanagan, a new bridge to replace the George Massey tunnel, and a new Pattullo Bridge. Rising net migration that pushed BC’s population growth in 2014 to its fastest annual rate (1.2%) in almost four years further supports BC’s momentum. Total net migration is forecast at 42,400 people in 2014 and 41,600 people in 2015. And that population growth is, in turn, helping to sustain residential construction levels. Projected population growth of just over 1% a year is expected to add approximately 30,000 households annually. New housing starts are forecast at 28,300 units across the province in 2015. Metro Vancouver continues to see healthy commercial and retail construction,

ALBERTA Oil price impact to ripple across province The impact of lower oil price will be felt most deeply here, but the momentum of years of massive investment in the oil sands, record in-migration and a more diversified economy should help the provincial construction industry ride out the storm. Expect GDP growth in 2015 to fall short of earlier estimates of 3.0%. Work is currently underway on projects worth more than $55 billion in the oil sands alone. With other oil and gas and pipeline projects added, the value is close to $63 billion, according to Alberta Innovation and Advanced Education. That’s in addition to multiple multibillion dollar transmission line projects and large wind power projects. There should be some easing of the tight labour market that saw Alberta’s unemployment drop to 4.9% in 2014. Oil patch workers may migrate to other energy, resource and infrastructure projects ramping up elsewhere in Canada. The new workers are part of the steady inflow of migrants, which is expected to moderate after two years of record in-migration to 79,000 in 2014 and 64,000 in 2015. They will help keep demand for new housing high, with starts projected at 40,400 for 2014, 37,400 for 2015. The influx of investment and people is also fuelling sustained building booms in Calgary, Edmonton and Ft. McMurray. Seven major new office towers are underway in Calgary, with Brookfield Place expected to be Western Canada’s tallest when completed in 2017. Plans for an additional five major commercial as well as fifteen residential towers may be scaled back, depending on oil prices. Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 25


CONSTRUCTION COST TRENDS Edmonton has three major new office projects underway, the Stantec tower, the Kelly Ramsey Building and the City of Edmonton building, as well as the $480 million Rogers Place and the $340 million Royal Alberta Museum, and several new residential towers. The expansion is even more dramatic in Fort McMurray, where a $258 million airport expansion and surging residential market are the warm-up for a planned civic centre, public square, arena, and multiple high-rise residential towers in the downtown. The surging non-residential sector is expected to experience a steady demand for trades involved in oil sands, pipeline, utility and manufacturing construction while demand will be more moderate in the residential sector. Ongoing major infrastructure projects will also put pressure on the labours supply. Spending commitments on healthcare facilities, new schools, highway expansion, the $2 billion Calgary Airport, and the $3.2 billion Edmonton LRT Valley Line promise to stretch construction industry capacity to the limit. SASKATCHEWAN Mining, infrastructure and residential activity create balanced workloads Ater a modest 2014 following a string of high growth years, Saskatchewan is expected to rebound in 2015, with healthy crop yields expected to offset the squeeze from lower oil prices. A lacklustre performance in agriculture (following bumper crops in 2013) and low potash prices slowed the pace in 2014, but ongoing mining, pipeline and infrastructure projects will help keep construction levels steady this year. Growing global demand for potash will add momentum to the non-energy mining sector. At 4.3%, the province’s unemployment will continue to be the lowest of any province. There are 15 projects valued at more than $30 billion underway in the mining sector, and another 20 projects valued at $5 billion in oil and gas and pipeline expansion. Some major projects have already peaked and are starting to wind down. Major infrastructure projects underway include the Children’s Hospital of Saskatchewan, the Regina Football Stadium, Regina Highway Bypass Project and the $1 billion Boundary Dam coal power station. Construction on the new Regina Wastewater Treatment Plant started over the summer; it is slated for completion at the end of 2016. Overall, the government will spend $2.9 billion on infrastructure projects, ranging from power generation facilities to telecommunications networks to schools to highways to hospitals. SaskTel will spend $355 million to expand its wireless network in rural areas. Another $200 million is marked for highway and bridge projects. Net in-migration of 12,900 people is projected in 2014, before slowing to 11,300 in 2015. Housing starts will follow a similar downward trend with 8,400 forecast for 2014 and 7,700 in 2015. Bank projections call for GDP to range from 2.6% to 2.8% in 2015. 26 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015

QUEBEC Lower oil and loonie boost Quebec’s prospects Quebec is another beneficiary of lower oil prices and a lower loonie. They will be a shot in the arm to what has been sluggish growth and sweeten the outlook for both residential and non-residential building for industrial, commercial, and institutional sectors in 2015. Ongoing and proposed major engineering projects, including bridges, roadwork, port infrastructure, transit, mines, and electric power generation, will provide a solid base on which construction can expand. The Quebec government has maintained the overall level of investment in the Quebec Infrastructure Plan, with infrastructure spending increasing to $11.5 billion in 2014-2015, from $10.7 billion in 2013-2014. Major transportation projects moving forward include the $5 billion St. Lawrence Crossing to replace the crumbling Champlain Bridge, the $3.7 billion rebuild of the Turcot Interchange, and a $1.5 billion extension of the Métro in Montréal’s east end, as well as port and river infrastructure in various locations. Plan Nord, which aims to stimulate the economic, social and environmental development of northern Quebec, is also moving ahead with work on road infrastructure to improve access for resource development. Major new mine developments include the $752 million Stornoway diamond mine, two iron ore mines, Aupaluk and Kemag valued at $7 billion. In the energy sector, the ongoing $6.5 billion Romaine hydro project Complex (hydroelectric) leads the way, with a planned new power line – valued at $1.1 billion – to meet the growing demand for electricity north of Montréal. Total net migration is expected to reach 34,262 people in 2014 and rise to 39,000 people in 2015. This increase will have a positive impact on demand in Quebec’s rental market as well as support the residential building sector, with housing starts projected to rise slightly from 38,200 in 2014 to 39,000 in 2015. Major commercial projects underway in Montréal include the $800-million Deloitte Tower, scheduled for completion in 2015, and the 50-storey Tour des Canadiens, due in 2016. Over the next five years, however, the retail sector in Montréal is expected to undergo a significant transformation in the downtown core with St. Catherine Street forecast to be completely transformed over the next five years. Overall, Quebec’s diversified export sector is expected to strengthen significantly with a lower loonie and stronger demand from the United States resurgence in manufacturing and exports should translate to greater business investment and increased investment in non- residential construction after 2015. Bank forecasts for Quebec’s 2015 economic growth range from 1.5% to 2%. MANITOBA Manitoba powers up with massive energy projects A number of major energy and mining projects are the driving force in construction in Manitoba. Altogether, investment in engineering construction is projected to rise 26% from 2014 to 2015. Both engineering and ICI construction – especially industrial – remain well above historical levels of activity. The major energy projects include the $6.2 billion Keeyask Generating Station, the $3.5 billion Bipole Transmission Line, and the $1.6 billion Wuskwatim Hydroelectric dam. However, other economic mainstays such as metal mining will see little growth and crop production is expected to decline this year. Manitoba’s increased public infrastructure spending is providing stimulus to the economy,


supporting bank growth forecasts of between of 2.1% and 2.8% for 2015. In spring 2014, the Manitoba government announced details of its five-year, $5.5 billion infrastructure-spending plan. The province will spend $3.7 billion over five years on highways, bridges, and critical transportation infrastructure, and more than $300 million on flood protection and water quality projects. Municipal infrastructure investment will average over $300 million a year for five years, for a total of $1.5 billion. One of the province’s longer-term infrastructure projects is the $3 billion East Side Transportation Initiative that will see 1,028 km of all-season road built connecting the east side of Lake Winnipeg, and eastern Manitoba in general, with the wider road network. Leading the way in downtown commercial projects are the $180 million RBC Convention Centre expansion, the 21-storey Glasshouse Lofts residential tower, and the proposed $150 million, 54-storey SkyCentre office tower, which would be the city’s tallest. The province’s economic growth should get a boost from the lower loonie that reduces the cost of exports to a strengthening U.S economy. A rebound in manufacturing will spur construction – as will continued positive net in-migration, which is projected to moderate to 9,200 in 2014 and 9,100 in 2015. Housing starts are expected to decline slightly from 6,700 for 2014 to 6,500 for 2015. ATLANTIC REGION Slower economic growth lowers expectations for building Atlantic Canada set another investment record in 2014 with 439 projects worth $122 billion, a 7% increase over the previous year. Annual spending on major projects in the region was also on the rise, up about 8% to a record $15 billion for the year, with Newfoundland and Labrador leading the pack. Even with the increase, overall slower economic growth in the region has led to a fall-off in forecast construction spending for 2015. Net in-migration in the region – except for Newfoundland and Labrador – is projected to come in at or near zero and expectations for growth in new residential building are equally weak. The impact of workers returning to the region from Alberta and Saskatchewan in the wake of oil patch project cancellations may generate housing demand – and swell the construction workforce. NOVA SCOTIA Natural gas production will fuel expansion of Nova Scotia’s economy forecast to grow at between 1.2% and 2% in 2015. The ongoing $300 million expansion at the Halifax shipyard will see it ready to start building navy combat ships in mid-2015, giving the construction industry, and the economy, a welcome boost. Construction continues at a mixed-use development at King’s Wharf on the Dartmouth waterfront, and the $500 million Nova Centre is scheduled for completion in 2015. PRINCE EDWARD ISLAND The Atlantic Provinces Economic Council has identified $2.1 billion dollars-worth of upcoming investment projects in the province for 2015, up 10% over 2014. Public investment will get a boost from the New Building Canada Fund and the Gas Tax Fund, which together will deliver $440 million to the province to improve infrastructure. Bank GDP growth forecasts for 2015 range from 0.8% to 1.2%.

NEW BRUNSWICK Construction levels across the board will dip slightly in 2015 and are then expected to rebound sharply in 2016, lifted by the Energy East Pipeline and associated marine facilities. Overall GDP growth is forecast at between 1.0% and 1.9% in 2015 as the natural resource sector, a major economic driver, waits for the U.S. recovery to gain strength. NEWFOUNDLAND AND LABRADOR Newfoundland and Labrador’s economic – and construction – growth slowed substantially in 2014 as capital spending levels eased and oil production remained steady. Lower oil prices may reduce the previous GDP growth forecast of 1.5% for 2015. The oil price impact may have a ripple effect that leads to lower overall construction levels.

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Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 27


CPD Corner

The diverse world of bidding

I

David Dooks, PQS

The time honoured task of delivering your bid envelope by hand before the clock expires is a dying trend.

n years past, the procedure for delivering bids to the procurement agency was not as complex as the methods being used today. The time honoured task of delivering your bid envelope by hand before the clock expires is a dying trend. The expiring clock will never change, that is one constant we can rely on. However, we are seeing a growing trend in online bidding or other bid evaluation methods. Owners are developing their own personalized bidding systems to best serve their needs and demands. The catch is how diverse bidding is becoming. Over the last few years I have bid several projects using online bidding systems. Most of the training I received was adequate and informative. However, even with this training, first attempts at using an online bidding system can be unfamiliar. It is great for the estimator submitting the online bid to be in full control of the information being submitted. However, the biggest obstacle I have encountered is that no two online bidding systems are the same. The online bidding systems offer the best

access to digital tender documents. The information can simply be downloaded onto a computer or laptop and be used by the bidder to view tenders and determine which jobs we wish to bid. Updates or changes to bid documents through addendums can be uploaded to the digital files and notice given to the bidder by email as soon as they happen. Some systems have open chat dialogs that all bidders can access to ask questions directly to the consultants before bid closing. Those making use of online bidding such as banking institutes, big box stores, restaurant chains, construction associations and government procurement agencies all have their own personally developed online bidding systems. Most systems try to mimic how bids were prepared in the past by asking for a standard lump sum bid. Bid bonds and insurance documents can be digitally uploaded and attached to the online bid file on or before closing. Most systems try to make the bidding process a seamless extension of how we prepared bids in the past. However other

systems have developed bid forms that incorporate full trade cost breakdown for the building and site packages or base building and fit-up packages. If that is not enough, some bid forms will also request the sub-trades to be named with the submitted breakdowns. That is a lot of information to be filled in during the frantic few minutes before a bid closes. For the most part the procurement agencies will ask the bidder to submit the lump sum price at closing time and give up to a maximum of 24 hours to complete the breakdowns requested. These online bidding systems are so diverse in their styles and approaches that good estimating departments need not only find skilled and competent estimators but also find those capable of working the vast world of media software and web browsers to keep up with the world of online communications. Not all procurement agencies have adopted the online bidding trend. Instead they have developed a hybrid prequalification / lump sum bidding system. An example of this style of bidding is called ‘best value procurement.’ This model of

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28 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2015


bidding evaluates a bid based on the contractors experience and expertise. In most cases the owner has already established a construction budget and will evaluate and select a contractor based on their past performance. In Canada several universities and some government agencies have now started using and have successfully completed several construction projects using the best value model. For the contractor this type of bidding still depends on the estimators preparing a lump sum bid. However, before the price can be considered, the owner will evaluate the contractors past performance, project completion schedule, and the overall experience of the onsite construction team. During this review process the owner’s procurement team will assign a value to each category. The contractor scoring the highest mark overall will come out on top. The demand is on the bidder to bid the job, know the job, and be capable of analyzing and presenting the risk factors to the owner before the job is awarded. Best value projects already have a proposed value of construction or are based on an established construction cost budget. The owner is looking for a qualified contractor to do their work. The decision is not necessarily awarded to the lowest price but to the contractor offering the best qualifications for the job they are bidding. While the estimator is still preparing the bids and the required back-up information for these bids, the project managers must determine a construction schedule or determine if a proposed completion date is achievable. The bidding team reviews the bid documents to identify the risk factors that will cost owners money and delays. Site superintendents need to prove their onsite problem solving techniques and show their commitment to get the job done safely. Some best value bids will evaluate the prequalification’s first and then ask the highest scoring bidders to take part in an interview process. If a bidder reaches this stage only the project manager and site superintendents will be requested

to meet the interview panel. The owner already has the price and the company’s background information and now wants to meet the onsite team a contractor has proposed. Once this stage is complete then the prices are revealed and the owner can decide which contractor has scored the highest points and evaluate the price based on those merits. For this style of bidding, one can only hope that the owner has made use of a professional quantity surveyor to prepare and develop their construction budgets. One must consider that if the lowest bid never reaches the final selection process and jobs are awarded based on merits, then the owner should have a full understanding of the value of a project. High merits scores may encourage higher cost but the owner really needs to know how much the project is worth before making a final decision. A good best value procurement should be based on

finding the most qualified contractor to do the job for the right price. The demand for online bidding systems will only continue to grow. So many business and environmental objectives are focused on reducing the use of paper and ink. The use of digital takeoff software and online bidding are good examples of ways to save these resources. Our communities are looking for the successful construction projects that are built safely, environmentally friendly, and with lasting quality. Owners and contractors are looking for successful building projects to complete. The idea of bidding a job based on a company’s reputation and not just on the lowest price is a refreshing change. These growing trends in bidding methods may seem vastly diverse compared to the old classic world of bidding but I have a strong feeling we must keep up rather than hold back progress.

AMS Quantity Surveyors 700 March Road, Suite 201 Kanata, Ontario, K2K 2V9 Tel: (613) 592 2664 Fax: (613) 592 6332 www.amsqs.com

Armstrong Modulevsky Schutte Quantity Surveyors Inc. Gordon Armstrong & Associates is pleased to announce the addition of two new partners and the formation of our new company, Armstrong Modulevsky Schutte Quantity Surveyors Inc. (AMS Quantity Surveyors). With over 20 years experience each in project monitoring and cost planning, both Yury Modulevsky and Stephen Schutte provide a wealth of experience and in-depth knowledge for our clients. AMS Quantity Surveyors specializes in Quantity Surveying, Cost Planning and Project Monitoring for a wide variety of clients including architects, developers, banks, trust companies and other financial institutions. Through our extensive experience in managing and costing construction projects, we are able to provide a comprehensive service of estimating, reviewing and monitoring all project costs from inception to completion. AMS Quantity Surveyors primarily provides services in the Ottawa, Eastern Ontario and Quebec markets. Our address and telephone numbers are currently unchanged.

Spring 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 29


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