Construction Economist Journal - Summer 2015

CONSTRUCTION ECONOMIST SUMMER 2015

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

CIQS signs Affiliation Agreements

PAQS 2015 PM 40065075

recap

2016 Congress

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2 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015 Projet : Annonce TDI 2015

Province : Ontario Publication : Construction Economist

Épreuve # : 1

CONSTRUCTION ECONOMIST SUMMER 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 Arif Ghaffur, PQS....................... . . . . . . . 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(F) Vice Chair: Craig Bye, PQS Past Chair: Mark Gardin, PQS(F)

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

Features CIQS and Affiliated Associations sign new affiliation agreements. . . . . . . . . . . . . . . . . . . 9 PAQS Congress recap. . . . . . . . . . . . . . . . . . . . . . . . 10 Canadian Ian Duncan named Chair of international QS association. . . . . . . . . . . . . 13 Trends, approaches and best practices in drywall estimating . . . . . . . . . . . . . . . . . . . . . . 14 Member interview – Louis Yves LeBeau . . . . . . . . . 18 Adopting an effective asset strategy . . . . . . . . . . . 22

Secretary/Treasurer and CIQS – British Columbia Rep: Matt Weber, PQS

Save the date – 3rd CIQS Congress. . . . . . . . . . . 25

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)

25 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.

Corners

Messages

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

CPD Corner . . . . . . . . . . . . . . . . . .

26 Education Corner . . . . . . . . . . . . . . 27 Legal Corner. . . . . . . . . . . . . . . . . . 28

Chair’s Message. . . . . . . . . . . . . . . .

Third Floor - 2020 Portage Avenue Winnipeg, Manitoba R3J 0K4 Tel: 866-985-9780 Fax: 866-985-9799 info@kelman.ca www.kelman.ca Managing Editor. ........................ . . . Chris Kelman Art Design/Production. ............. . . . . Jackie Magat 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

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®).

4 Executive Director’s Message. . . . . . 6 Editor’s Message . . . . . . . . . . . . . . . 7 Congratulations. . . . . . . . . . . . . . . 30

Chair’s Message

My sincere gratitude and well deserved accolades

I

t seems like it was only yesterday that I assumed the position of National Chair of the CIQS and now, almost a year later, I am moving on to the position of Past Chair within the organization, passing the torch to my successor. As this will be my last public address in the role of Chair (via the Construction Economist), I thought that now would be a prudent time to offer my sincere gratitude and give well deserved accolades to our stalwart Board of Directors, our ambitious staff, our volunteers and to our tireless Executive Director, Lois Metcalfe.

Looking back over the course of the year, I must first say that I am both proud and honoured to have had the opportunity to represent you as the Chair of our National Board. Secondly, I believe that the Canadian Institute of Quantity Surveyors has finally come of age; it has never looked so good, nor been as wellpoised for the future, as it does now.

My opinions in this regard are derived primarily from the numerous successes our Board has achieved over this past year, in concluding a number of the initiatives set forth during prior years.

Although arduous and all-consuming, the marketing efforts, the rebranding of the affiliates, restructuring of our administrative systems and the issuance and signing of our updated governance documents and affiliate agreements are truly noteworthy accomplishments that will both strengthen and secure our organization for years to come.

Through these achievements, a number of cross-aligned initiatives have now been collectively formalized and our Institute is perfectly structured to serve all of its professional designation holders from coast to coast to coast, for years to come.

From my point of view, when I look at the CIQS and consider the Professional Designations that it governs, I find it impressive that our Institute offers credentials which are recognizable and accepted anywhere in Canada, without having to re-licence on a regional basis if relocating. In other words, once you achieve your CEC or PQS designation, you are good to go, anywhere in Canada.

When you consider that many of the other white-collar (and / or technical) professions within our country are

CIQS has never looked so good, nor been as well-poised for the future, as it does now. limited by policies where one must re-register or be re-tested to work interprovincially, the enviable position of our special group is obvious. Many of the youth coming into our industry have relayed to me personally that it is both the integrity of our Institute and the flexibility to work where they choose that attracted them to the CIQS in the first place. Similarly, many of our current designation holders currently exercise this work option – practising in various regions – as consistent with their own areas of expertise and the demands of their clients.

However, the privileges of CIQS membership were not always there.

Our organization had to evolve in a manner that best served the professionals within, so as to accommodate their needs. Retrospectively, having sat as

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

Dave Burns, PQS(F)

National Chair, it is now clear to me that much of the integrity, recognition and versatility of our CIQS designations were accomplishments largely gained through the leadership, strong governance and excellent management intelligence provided by our Board of Directors – CIQS Directors from each of the various regions within Canada who shared in the common interest of being a designation holder themselves.With this thought in mind, I would like to thank all of the Past Board Members who previously governed, all of the current Board of Directors who presently govern and our Executive Director, Lois Metcalfe for her consistency, dedication and guidance through it all. Directly, or indirectly, it is these people’s past efforts that allowed me to achieve my designation of PQS, which in turn has provided me with a fantastic career and the respect associated with it.In closing, I would like to extend a special thankyou to our Past Chair, Mark Gardin from Nova Scotia, who has long served on the CIQS National Board and will be completing his term. His dedication to the Institute was both significant and steadfast. Similarly, I would also like to welcome the incoming Vice-Chair, Matthew Weber from British Columbia who brings his vitality and vision to the Executive Council. Looking towards the future, I wish to congratulate Craig Bye, our current Vice-Chair as he transitions into the incoming Chair position. I am confident that Craig will provide us with the leadership and governance we all appreciate. I again thank all of you all for your trust and allowing me to serve as your Chair. It was truly an honour to serve in this capacity within such a great organization.

Message du Président du Conseil

Mes sincères remerciements et un hommage bien mérité

I

l me semble que ce n’était qu’hier encore que j’assumais le rôle de président national de l’ICÉC. Aujourd’hui, presque un an plus tard, je me prépare à occuper les fonctions d’ancien président au sein de l’organisation, passant ainsi le flambeau à mon successeur. Puisque c’est la dernière fois que je m’adresserai à vous publiquement à titre de président (via the Construction Economist), je crois que le moment est opportun pour offrir mes sincères remerciements et rendre un hommage bien mérité à notre pilier, le Conseil d’administration, à notre personnel ambitieux, à nos bénévoles et à notre directrice générale dévouée, Lois Metcalfe.

Pour faire le point sur la dernière année, je dois premièrement souligner que je suis fier et honoré d’avoir eu l’opportunité de vous représenter en tant que président de notre Conseil national. Deuxièmement, je crois que l’Institut canadien des économistes en construction a finalement atteint une certaine maturité, puisqu’il n’a jamais eu aussi fière allure et n’a jamais été aussi prometteur que maintenant. Mes opinions à cet égard sont influencées principalement par les multiples succès remportés par le Conseil au cours de la dernière année, via l’accomplissement de plusieurs projets entamés au cours des dernières années.

Bien qu’il s’agissait d’un travail de longue haleine et parfois ardu, notamment les efforts de marketing, la nouvelle image de marque des affiliés, la restructuration de nos systèmes administratifs, l’émission et la signature des accords d’affiliés et la mise à jour de nos documents de gestion, ce sont tous des accomplissements remarquables qui renforcent et sécurisent l’organisation, et ce, pour des années à venir. À travers ces réussites, un certain nombre d’initiatives transversales ont été accomplies collectivement. Notre Institut

est parfaitement structuré afin de servir tous les détenteurs de désignation professionnelles d’un bout à l’autre du pays pour les prochaines années.

De mon point de vue, il est très impressionnant que les qualifications offertes par notre Institut soient reconnues et acceptées partout au Canada, et ce sans obliger un renouvellement de licence lorsqu’un professionnel change de province. En autres mots, lorsque vous obtenez votre désignation ECC ou ÉCA, vous êtes reconnu partout au Canada.

Il est évident que notre groupe est spécial et qu’il occupe une place enviable au sein des autres professions à col blanc (et/ou techniques) car plusieurs de ces professions sont limitées par des politiques qui obligent de se réinscrire ou subir de nouveaux tests afin de travailler dans les différentes provinces de notre pays. Plusieurs jeunes professionnels dans notre industrie m’ont exprimé personnellement que l’intégrité de notre Institut et la flexibilité de pouvoir travailler là ou ils le souhaitent sont d’abord et avant tout ce qui les ont attiré vers l’ICÉC. De même, plusieurs de nos détenteurs de désignation bénéficient déjà de ces avantages - en travaillant dans différentes régions - de façon cohérente avec leur champ d’expertise et avec les demandes de leurs clients.

Toutefois, ces privilèges qui sont propres aux membres de l’ICÉC n’ont pas toujours existé. Notre organisation a évolué afin de mieux servir les professionnels qui la compose, afin de combler leurs besoins.

Rétrospectivement, ayant occupé le poste de président du Conseil national, il est maintenant évident pour moi que l’intégrité, la reconnaissance, et la polyvalence de nos désignations de l’ICÉC démontrent les réussites qui ont été

acquises grâce à une direction efficace, une solide administration et une gestion intelligente de la part de notre Conseil d’administration - composé de directeurs provenant de chacune des régions du Canada qui partagent un intérêt commun, puisqu’ils sont eux-mêmes détenteurs de désignation.

Partant de cette réflexion, j’aimerais remercier tous les anciens membres qui ont siégé au Conseil, tous les membres actuels du Conseil d’administration et notre directrice générale, Lois Metcalfe, pour sa cohérence, son dévouement et ses conseils tout au long de ces efforts.

Directement et indirectement, c’est le fruit des efforts acharnés de ces personnes qui m’ont permis d’atteindre ma désignation ÉCA qui, en retour, m’a permis d’avoir une carrière aussi formidable et tout le respect qui lui est associé.

En conclusion, j’aimerais particulièrement remercier notre ancien président, Mark Gardin, de la Nouvelle-Écosse, qui a si bien servi le Conseil d’administration de l’ICÉC depuis plusieurs années et qui terminera bientôt son mandat. Son dévouement pour l’Institut fut à la fois important et inébranlable. J’aimerais également souhaiter la bienvenue au vice-président, Matthew Weber, de la Colombie-Britannique, qui amènera son dynamisme et sa vision au Conseil exécutif.

En regardant vers le futur, je tiens à féliciter Craig Bye, notre vice-président actuel dans sa transition vers le poste de président.

Je suis convaincu que Craig saura nous fournir le leadership et la gouvernance que nous apprécions tous. Je vous remercie encore une fois pour votre confiance et pour m’avoir permis de siéger en tant que votre président. C’est un véritable honneur d’avoir occupé cette fonction au sein de cette formidable organisation.

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

Executive Director’s Message

All about designations

R

ecently I received an email from a potential Designation Holder asking what he would be required to do to achieve his MCIQS designation. Some of you may ask, “What does ‘MCIQS’ mean?”

This was somewhat of a surprise to me as I have not seen MCIQS used for quite some time as it was the original designation of the CIQS and used until 1988. The designation was awarded

to qualified members upon achieving all the CIQS requirements and stood for Member, Canadian Institute of Quantity Surveyors. In 1988, CIQS obtained the marks PQS (Professional Quantity Surveyor) and the French equivalent ECA (Économistes en Construction Agréé).

These designations replaced MCIQS. Later, CIQS also obtained the official marks CEC (Construction Estimator Certified) and the French equivalent ECC

Please join me in welcoming our new Editor of Construction Economist, Arif Ghaffur, to the CIQS team!

Lois Metcalfe

(Estimateur en Construction Certifié).

CIQS grants Designation Holders a license to use these designations provided they are qualified and in good standing.

Not only have I seen MCIQS still in use, I have also seen Designation Holders create their own designations in their signature and on their resume. Here is a list of acceptable (provided you are a qualified member of CIQS and in good standing) and unacceptable designations: Professional Quantity Surveyor PQS Construction Estimator Certified

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

MCIQS AQS ACIQS PQS (In training) PQS(R) PQS (Intern) Use your correct designation with pride.

You have earned it!

Editor’s Message

Arif Ghaffur, PQS

I

Share and enable knowledge exchange

am delighted to have been appointed as the Editor of the Construction Economist. It is an honour to have been entrusted by the CIQS National Board to oversee the continuing development of this publication. Driven by a passion for raising an awareness of best practices, I have contributed articles to the journal for a number of years and I am particularly pleased to continue supporting our profession in a meaningful manner. I would like to express my sincere gratitude to our previous Editor, Joshua Mutize, who volunteered not only his time and expertise, but also worked tirelessly to bring the journal to its latest form. I also extend my thanks to CIQS Executive Lois Metcalfe and Pat Cantin from the CIQS National Board, both of whom held the fort in progressing content delivery in the previous two issues as the search for a new Editor went through its due process of selection.

In its requirements for sourcing a new Editor, the CIQS challenged the new Editor to “find creative ways to secure meaningful coverage that is interesting, aspiring and informative – we need someone to guide the magazine to new heights of excellence.” In-depth experience of the Canadian construction industry, coupled with a forward-looking mandate has focused my interest to further enhance a journal that is a

There is increasing demand for our profession to be proactive in not only approaches but also solutions which are founded on solid professional knowledge and expertise. highly valued communication vehicle representing quantity surveyors and construction estimating professionals.

With a current controlled circulation in excess of 2,500 and research backed readership of around 8,000, the journal has been an established conduit to communicate current information about the CIQS, technical articles, and information on events. From humble beginnings in 1959, the journals of the CIQS have undergone various changes.

Prior to being named the ‘Construction Economist’ in 1987, the journal was known as ‘Cipher’, an expression signifying a series of well-defined steps followed by a procedure – a process well known to our profession.

Initially, my Quantity Surveying skills kicked in and I went back to basics as I asked myself the relevance of the name Construction Economist.

The term ‘Construction’ clearly has a broad meaning and involves the act of building something. In parallel, the term ‘Economist’ has tremendous breadth

extending to the whole process or system by which goods and services are produced, bought and sold. Today in Canada, Quantity Surveyors and Estimators are engaged in the full broad spectrum that the term ‘Construction Economist’ embodies. Therefore, the name Construction Economist is both relevant and appropriate for a journal that is a communication tool for topics that are not only current, relevant and meaningful to the construction industry, but also offer a tremendous level of insight.

The construction industry is significant – from a macroeconomic viewpoint, there is over $1B in construction activity per year in Canada, making it the fifth largest construction market in the world. Over 8% of Canadians work in construction and contribute to over 7% to the Gross Domestic Product.

As there is currently inward reflection on the impact of negative economic drivers (such as fluctuations in the price of oil) on the overall performance of the Canadian economy, there is an

The Construction Economist is also available in electronic format. Please visit the CIQS website www.ciqs.org and press the “Publications” tab.

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

Editor’s Message

For over 50 years the Construction Economist has been a conduit for sharing information on subjects aligned to our professional not only for Designation Holders, but also the pass on readership who have accessed our journal. increasing demand for our profession to be proactive in not only approaches but also solutions which are founded on solid professional knowledge and expertise. This knowledge requires the need to educate, inform and learn across our profession and from other professions that have subject matter beyond ours.

Over the coming issues, you will see a number of initiatives to engage subject matter expertise that seeks to communicate topical issues along with a concerted effort to engage the full breadth of our Designated Holders, i.e., Professional Quantity Surveyor,

Did you know?

The CIQS was formed in 1959.

From an initial membership of 39, the CIQS now has approximately 2,000 Designation Holders that include Professional Quantity Surveyors, Construction Estimators Certified, Associates & Students.

Construction Estimator Certified, Associate or Student. In this topic, you will begin to see the introduction of a legal corner authored by recognized subject matter experts with a particular advocacy of best practices in the construction industry. Also, we are re-introducing member interviews to engage and captivate the depth of our membership.

In parallel with engaging from within and with other professions, it is perhaps time to reinvigorate the message from the 9th CIQS President (1969-1971) George W. Slee who said, “In spite of our seeming modesty and reticence, the nature and extent of our professional capability is becoming better known. Nevertheless, the time has come for us to more boldly express our professional capability to make significant contributions to the whole construction industry, of which we are an integral part.”

Today, Quantity Surveyors and Estimators flourish in both Canada and in the international arena by serving a broad spectrum of customers including Owners, Developers, Contractors, Subcontractors, Suppliers, Architects, Engineers, Lawyers

and other professionals. Our professional qualifications and skill-set continue to offer portability, with tremendous breadth in our ability to contribute to the specific challenges that construction projects provide. It is an opportune time to fertilize ideas and to learn from each other. In this spirit, for over 50 years, the Construction Economist has been a conduit for sharing information on subjects aligned to our profession, not only for Designation Holders, but also those others who get the opportunity to read our journal. I look forward to working closely with our Executive Director, the CIQS National Board, Affiliated Associations, Designation Holders, multiple stakeholders and our publisher to ensure that we promote the Construction Economist to new heights of excellence by providing an interesting and insightful read. I thank you for your support and contribution, and sincerely wish you and your families a truly wonderful summer.

If you have feedback, suggestions, and of course any articles that you would like considered for publication, please email: editor@ciqs.org.

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

CIQS and Affiliated Associations sign new affiliation agreements

By Lois Metcalfe, Executive Director We are pleased to announce that new affiliation agreements were formally signed by CIQS and all affiliated associations in April, 2015. These replace previous agreements between CIQS and the affiliated associations dating back to 1978. The new form of affiliation agreement provides long term certainty and stability to our new governance structure, consistency with past practice and clarity to delineate the rights and responsibilities of CIQS from those of each affiliate. Concepts in the new affiliate agreement include: a) Exclusive recognition by CIQS of the affiliate in its territorial jurisdiction;

b) Recognition by the affiliate of the role of National Council; c) The granting by CIQS to each affiliate of a licence to use certain CIQS intellectual property; d) Confirmation of the flow of funds from the Designation Holders to CIQS to affiliates; and e) Record keeping roles and responsibilities, and other matters.

The new affiliate agreements are intended to be in place over a long term and therefore are written in a manner that is principle-based rather than prescriptive. Further, National Council

CIQS – BC President and representative, Matt Weber and CIQS Chair, Dave Burns signing CIQS/CIQS-BC Agreement.

CIQS – Maritimes President and representative, David Dooks and CIQS Chair, Dave Burns signing CIQS/CIQS-Maritimes Agreement.

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 the affiliated associations and the current form of affiliation agreement reflects meaningful input from the affiliates.

Congratulations to everyone involved for achieving yet another important milestone in the history of the CIQS.

CIQS – Ontario representative, Patrick Cantin and CIQS Chair, Dave Burns signing CIQS/CIQS-Ontario Agreement.

CIQS – NL President and representative, Roy Lewis and CIQS Chair, Dave Burns signing CIQS/CIQS-Newfoundland and Labrador Agreement.

CIQS – Prairies President and representative, Michael Bernier and CIQS Chair, Dave Burns signing CIQS/CIQS-Prairies Agreement.

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

The 19th Pacific Association of Quantity Surveyors Congress May 29 – June 1, 2015 | Yokohama, Japan The 19th Annual PAQS Congress was held in Yokohama, Japan at the end of May this year. Canada was well represented by Ian and Tyra Duncan, David Lai, Dave Burns and Matt Weber.

The following is an overview and individual reports from the Congress.

OVERVIEW OF BOARD MEETING

By Dave Burns, PQS(F) During the 2015 PAQS Conference held in Yokahama, Japan, PAQS held its 19th Annual Board Meeting on May 30, 2015 with representation from its Member Organizations in attendance. In addition to Canada, professional bodies from Australia, Brunei, China, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, Sri Lanka and South Africa were in attendance at the meeting. In addition, some observer organizations were present, including similarly-mandated, multi-national organizations such as the Conseil European Des Economistes de la construction (CEEC) and the International Cost Engineering Council (ICEC).

Representing Canada at the meeting were Dave Burns, CIQS Chair and David Lai, CIQS Education Director. This Conference was the last meeting to be chaired by the outgoing Chair from China, Ms. Xu Huiqin, who was completing her last term in the Chair.

During the meeting, standard organizational business was conducted such as the review of past meeting

minutes and the reading of prepared reports inclusive of the Chairman’s Report, Secretary’s Report, Treasurer’s Report, PAQS Iwata Foundation Report and the Council of Advisors Report.

In addition, standard PAQS items such as award recipient details, essay competition winners, website updates and individual member country reports were also discussed.

Within the organization, a number of specially-formed committees, which focus on commonly shared member themes, had prepared individual reports for presentation. Accordingly, the Education Committee, Research Committee, Sustainability Committee, and the Young QS Group presented their report findings and recommendations, from which mandates and objectives were further developed.

Towards the end of the Board Meeting, PAQS held its Election of PAQS Officers for the 2015-2017 term. This segment of the meeting was particularly exciting for the CIQS, as one of our designation holders and a Past CIQS President, Ian Duncan, PQS was elected to sit as new the Chairman for PAQS. Effectively, Ian will Chair the next PAQS Conference in Christ Church, New Zealand in 2016 and in Vancouver, BC in 2017.

In traditional form, the 19th Annual PAQS Board Meeting closed with gift exchanges and a Board Photo session with all attendees.

10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

recap

SUSTAINABILITY COMMITTEE REPORT

By Dave Burns, PQS(F) During the PAQS Conference, the CIQS participated in the Sustainability Committee Meeting discussions through Dave Burns, PQS who represented Canada. This committee was recently established as one of the newer working groups and was chaired by Michael Manikas, of the AIQS (Australia). During the meeting, discussions led primarily to developing the mandates of the group as relating to efficiencies in construction, the reduction of energy consumption, the relationships between carbon footprints and construction and sustainability in general.Interestingly, it transpired during committee discussions amongst the various group members that a common means of assessing building efficiencies achieved on a project is difficult (if not impossible) to discuss, simply because a common measuring standard (for energy savings /building efficiency) among the various countries is not in place. Different countries utilize different systems, with different benchmarks and with different rating systems, to conduct their reporting. For instance, efficiency achievement standards were measured in a variety of methods such as through utilizing LEEDS (Gold, Silver, Platinum), an R-Rating system (R-20, R-30, etc.), a Star Rating System (1 Star–5 Star,) or perhaps using a Number Rating System (1–10).

All of the discussed measurement

standards are commonly recognized systems which within their countries of origin, but they vary dramatically depending on the country in which you operate, and are difficult to compare without a legend or common denominator.

Accordingly, through meeting conversations, it was decided that the first deliverable would be to assemble and organize information from each of the participating member countries which detailed the rating systems in place, the local measurement practices employed and the authority or organizational bodies which oversaw each. In some countries, government bodies manage these measurement practices, whilst in other places, non-profit organizations oversee building efficiency measurement standards.

Through the development of a Committee Report which presented this information, further mandates could be developed.

The committee chair is currently developing a standard questionnaire for all Sustainability Committee participants for input towards this undertaking.

RESEARCH COMMITTEE REPORT

By Matthew K. Weber, PQS Matthew K. Weber, PQS attended the PAQS 2015 Research Committee on Thursday, May 28, 2015 and represented CIQS. Mr. Weber observed that the research committee was going through a shift of structure and intent. During the meeting, each member country shared their research completed over the past year which mostly centered around education, sustainability and BIM which are all other PAQS committees. During the meeting, it was agreed that the committee chair would provide a mission statement, goals and expectations of the committee so that at the next board meeting each

member country could come with more items to discuss. There was also a long discussion about continuity on the committee, as over 60% of the attendees were new to the committee, including Mr. Weber. It was agreed that each member country would need to appoint a successor within a month of the PAQS meeting so the successor could be included on email correspondence from the committee.

The committee agreed that further information would be shared by email and to continue to future research the profession in their member country between now and the next PAQS event.

BIM COMMITTEE REPORT

By Mark Russell, PQS(F) The 2nd meeting of the BIM Committee was held in Room 801 in the Yokohama Symposium with no working air conditioning. Given that the temperature outside was 27 degrees and muggy, this proved a little challenging; however, paper fans were made available to assist the representatives in moving the warm air around.

Most of the member countries had representatives in attendance, although the Chair could not make the meeting.

It appears that the Chair has not been present for any of the BIM meetings, which is disappointing and would appear to not bode well for the running of the meeting. However, these fears were unfounded as the representative from Singapore stepped in to Chair the meeting and we got down to business.

The meeting started off with a ‘round the table’ open discussion on an update on how BIM measurement and adoption in your country is being implemented.

This proved to be very engaging and allowed for a free flow of discussion.

Australia commenced the discussion and informed the Committee that BIM is being widely used, however, most design firms are now using it as a presentation tool more than anything. Models are being put together in a skeleton fashion in a show of style over substance. The representative stated that his firm has invested a great deal of time working with select design firms, in order to work the model to suit how the Australian MoM is set up. This has produced great results and has cut down takeoff times on these projects significantly, with no loss of accuracy or misallocation of quantities. The BIM results with other firms had less of an impact and took as much time to produce a Cost Plan as a standard 2D electronic takeoff.

New Zealand added that they found BIM to be a useful tool for clash detection for the Construction Managers and issued a copy of the New Zealand Government’s Best Practices Guideline for BIM. China stated that BIM is being used on most projects and they intend to increase this usage in the upcoming year. Hong Kong also noted that BIM is part of a typical project, but cited concerns about the tie in with their MoM. The real star of the show was the host nation, Japan, and their software program called ‘Helios’ which is seamlessly integrated with the BIM systems in the market and works wholly in conjunction with their MoM. The Japanese representative and their observers carried out a demonstration of how the system works and the results were truly impressive. The QS has the ability to ‘add’ design elements to the model, in order to show the design team what their intent is in quantifying the project. This allows the design team to see the assumptions

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

that are made and comment accordingly.

The beauty of the system is that it knows where the limits and parameters are for the particular MoM element and snaps to the correct line/grid. Requests by some of the other country representative to translate the system into English were politely declined!

The meeting concluded with Australia, New Zealand, Canada and Hong Kong loading their presentations for use by the stand in Chair for the purpose of the minutes.

There appears to be a good appetite for this fledgling Committee and I would expect to see further advances by the time of the next meeting in Christchurch next year.

ACCREDITATION AND EDUCATION COMMITTEE REPORT

By David Lai, PQS(F) The 13th meeting of the PAQS Accreditation & Education Committee was held on Friday, May 29, 2015 in Yokohama, Japan. Attending the meeting were delegates from Australia,

Brunei, Canada, China, Fiji, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore and Sri Lanka.

Three main issues were discussed during the meeting: 1. The accreditation report for the University of Moratuwa, Sri Lanka which was presented to the committee. After reviewing the report the committee approved the accreditation of the Bachelor of Science in Quantity Surveying program offered by the university.

2. The outline of a Graduate Diploma in Technology (Quantity Surveying) to be offered by Massey University was presented by the representative from New Zealand. After much discussion it was agreed that the committee would review any accreditation application made regarding this program in the future.

3. The promotion and assistance in the development of the QS profession in Philippines and Indonesia was discussed and it was agreed that representatives from Malaysia would assist in this venture.

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Canadian Ian Duncan named Chair of international quantity surveyors’ association Earlier this month in Yokohama, Japan, Ian Duncan, PQS(F) was named Chair of the Pacific Association of Quantity Surveyors (PAQS) at their annual congress. PAQS, which celebrates its 20th anniversary next year, is an international association of quantity surveyors whose members include 14 institutions from countries and cities in Asia and the Western Pacific regions.

Duncan’s ascension from Vice Chair to Chair marks the first time that a designation holder from the Canadian Institute of Quantity Surveyors (CIQS) will hold the organization’s top position.

As Chair, Duncan will be the PAQS representative for the International Committee of Measurement Standards, an initiative that aims

to globally standardize processes of measurement to facilitate easier cooperation internationally, while also streamlining applications to global financial institutions such as the World Bank. Under Duncan’s leadership, PAQS will also assist its new members – quantity surveying institutions from Indonesia, the Philippines and Korea – get their educational programs up and running. PAQS’ education committee, which includes CIQS’s Education Administrator David Lai (PQS), performs ongoing accreditation assessments of programs in member countries in order establish reciprocity agreements among them.“CIQS’s involvement with PAQS substantially raises the image of Canadian quantity surveyors internationally,” Duncan said. “I look forward to continuing to foster good relationships within our industry across

the Pacific and beyond.” Duncan noted that he also plans to continue supporting the education of the next generation of quantity surveyors through the Young Quantity Surveyors Group, an educationfocused organization within PAQS for quantity surveyors under 40 years of age.

In 2017, during the second year of Duncan’s two-year tenure as Chair, the annual PAQS congress will be hosted by CIQS in Vancouver. Based on previous Congresses, CIQS expects 500 of the top quantity surveyors from around the world will attend. Ian is a past president of CIQS and has been one of the Institute’s designation holders since 1990. Born in Somerset, England, he has practiced quantity surveying in England, Jamaica, Trinidad and Tobago, Grenada and Canada. He resides in Elora, Ontario where he operates Atrium Consultants.

QUANTITY SURVEYORS, ESTIMATORS, PLANNERS A leading Cost Consulting and Project Management firm requires the following candidates for its Montreal and Ottawa offices: Junior, intermediate and senior level Q.S.’s, Estimators and Planners with experience on: • Commercial and institutional projects • Industrial projects (oil/gas, refineries, mining, metallurgical).

We offer competitive salaries, benefits, training and potential for growth. Relocation assistance will be provided.

We sincerely thank all applicants, but only those candidates which meet our requirements will be contacted.

Please send resume in strictest confidence to: LCO - Construction and Management Consultants Inc. Fax: 514-846-8913 | Phone: 514-846-8914 | E-Mail: MONTREAL@LCOGROUP.COM

Summer 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13

TRENDS, APPROACHES AND BEST PRACTICES IN DRYWALL ESTIMATING -A practical perspective

Growing industry The drywall industry has enjoyed tremendous growth since the turn of the 20th century due to refinements in manufacturing processes, coupled with the need for high quality, low cost buildings and houses (National Occupational Classification, 2011 as developed by Human Resources and Skills Development Canada/Statistics Canada and The Gypsum Construction Handbook, 2014). It is estimated that about 90% of interior finished surfaces of buildings constructed in North America use gypsum products in one form or another. The gypsum industry continues to develop new and innovative ways to provide high quality products and services to achieve code requirements of officials, designers and others.

Estimating procedure For the quantity take-off process, the estimator’s job is to figure out the quantities of materials based on project drawings, specifications and scope of work.

One of the commonly used estimating techniques for drywall estimating entails preparing quantities from scaled drawings, using either printed drawings or on-screen take-off procedures. This practice is typically used when a speedier take-off is desired compared to the traditional method of reading dimensions. It is paramount that the estimator be aware when scaling drawings to check that

he/she is using the correct scale, and whether the drawings themselves are correctly scaled. If the drawings are out of scale, the estimator needs to make adjustments on measurements.

40-storey building with 15 typical floors, the number of floors to be included in take-off process will be reduced from 40 to 25, so by 37%.

Residential drywall estimating Estimating quality Quality control is an essential element of good estimating practices. During the procedure of determining quantities (the take-off process), it is very important to follow consistent steps, forms and documentation for all projects. When preparing take-offs, it is a good practice to organize the estimate so that it follows the construction process of dry-walling as it would occur on the job site. The objective of this practice is to minimize the possibility of missing elements or quantities from the estimate. For drywall estimating it is always recommended that the estimator begin take-off calculations from the lowest level of the building element and move to upper levels. In drywall takeoff, it is recommended to always start with the building shell, following with demising and corridor walls and ending with the interior partitions and ceilings.

In multi-floor buildings, it is more efficient to prepare the quantity take-off floor-by-floor.

Where a building has multiple, identical floors a take-off of a typical floor is prepared and applied to all other similar floors. For example, in a

14 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

In residential projects, there is a significant difference in the materials used, compared to those in high-rise, residential projects.

In housing projects, all framing work is generally installed by carpenters and the estimator has to establish the quantities for various combinations of materials i.e. drywall, insulation and vapour barriers.

Therefore, the most efficient technique of estimating, relies on calculating all the materials that form the intended final product. Working with assembly quantities increases the productivity of the estimating process, which is very important in terms of increasing the number of projects priced and increasing the accuracy of measurements.

The waste factor is always related to the company policy, difficulties of the project and qualifications of the working team.

Assembly quantities are measured either as length or area, depending on the specific nature of any job. Drywall jobs consisting of a standard height can be measured and priced out on a length basis. However, most drywall assemblies are determined as area by multiplying the wall length or perimeter by the height. In order to determine the lengths of different assemblies, the estimator has to apply different types of measurements, such as on-center

measurements, interior measurements or exterior measurements (The Gypsum Construction Handbook, 2014).

For example: • In an unfinished basement, in order to calculate the quantity of the exterior wall insulation the estimator needs to figure out the perimeter of the exterior walls from inside the building, which then has to be multiplied by the height of insulation.

• In an exterior wall the measurements must be taken on the exterior side of the studs. When measuring a 2" x 6" woodstud-framed exterior wall, the insulation will be 6” longer and both the vapour barriers and drywall will be one foot longer on each side of measurements which results in a total of one additional foot for insulation and two additional feet for vapour barrier and drywall.

• In interior partitions, the measurements have to be taken on the center going through all openings; subsequent deductions for openings will be part of the quantity calculation.

• There are two general practices in ceiling calculations: (1) interior dimensions must be taken in uninsulated ceilings; (2) in insulated ceilings, calculations are based on measurements on the exterior side of studs.

During installation of drywall on wood frame walls, there is a specific mounting process that dry wallers follow. Drywall is installed horizontally which provides less linear footage of seam, smoother looking wall, shorter length of taping, and easier approach for walls 8’-6” or 9’-0” in height. In high-rise buildings, drywall contractors have to supply and install the metal stud frames as well as drywall, insulation and vapour barrier.

The methods of measurement for drywall, insulation and vapour barrier are the same as those for housing projects; however, when it comes to the installation of gypsum boards onto the stud frame, the practice requires mounting drywall panels vertically, rather than horizontally.

Steel-framed walls are measured on exterior sides of studs for exterior walls and on center for steel-stud interior partitions. For metal frames, the first action carried out by the estimator should be to differentiate between load bearing walls and non-load bearing walls. For load bearing walls, a structural engineering

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Summer 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 15

design is always required in accordance with loads calculated to be supported, wall height and deflection allowed. The design provides the dimensions and strength of metal framing. It is always very important to allow for a deflection system on the tops of these walls. Nonload bearing walls require smaller framing.

The estimator must differentiate among walls having drywall on both sides, those with drywall on one side, and those with only one layer or more than one layer of drywall. The calculation of metal frame elements must be provided in length; accessories are numbered in pieces.

When estimating a metal frame, as shown in Figure 1, the practice differs between exterior walls and interior partitions. For exterior walls, measurements at full height sections must be completed separately from sections with openings, in which case measurements are taken for head (top part of openings) and sill (bottom part of openings). The length of metal tracks is equal to the wall length multiplied by two for the full height walls and length multiplied by four for head and sill. The length of metal studs will be determined by multiplying the number of metal studs by wall height. To calculate the number of metal studs the wall length must be divided by spacing and adding one stud.

Additional metal studs must be added for corners, intersections and opening, based on the design noted on the plans.

For light gauge metal studs estimators typically calculate the number of metal studs required using the quick method, which consists of using the spacing between studs from 16" on center to 12" on center. Based on this consideration the length of the wall represents the

number of studs, as shown in Figure 2.

It is calculated that additional studs are enough to cover the extra number of studs required for openings, corners and intersections, as shown in Figure 3.

For suspended drywall ceilings the estimator has to calculate the number and the length of hangers, the length of perimeter track and the suspension system. For acoustic ceilings, besides hangers and perimeter tracks, the estimator needs to calculate the T-Bar system according to the grid sizes.

ICI – drywall estimating Industrial, commercial and institutional (ICI) buildings, (with single or multiple floors) incorporate extensive drywall application as interior finishes. Drywall application includes metal framing, insulation, vapour barrier and drywall.

Different wall assemblies denote different materials. The take-off process for ICI buildings should be based on measurements of the assemblies and is similar to high-rise residential buildings.

For industrial and commercial buildings, the estimator needs to pay attention to the height of the heavy gauge metal frames, as they require construction according to the engineering design.

Productivity Productivity in drywall work depends upon different factors such as: a) type of project; b) seasonal trends; c) type, size and quality of tools; and d) labour skills and experience. a) Type of project is an important factor in the determination of crew or team productivity. On residential projects, there are many repetitive processes that allow

workers to be efficient in their work. For example, in housing subdivisions, there are many repeated models. In high-rise buildings, there are many typical floors where the layout and the heights are the same. Recognizing, the specific nuances of each project, in institutional buildings with repetitive layouts, the practice is generally the same as in high-rise residential buildings. Industrial and commercial projects can be unique, have more individuality and involve less repetition. b) Seasonal trends are another important factor. Unless drywall work is related to interior finish and requires specific working conditions related to temperature and humidity, high temperatures and humidity during summer and low temperatures and wind chill during winter have negative impacts on workers’ productivity. Thus, for short-term projects, seasonal factors are important in the calculation of productivity.

For long-term projects, (a year or more), seasonal factors have less impact. c) Type, size and quality of tools and equipment have a direct impact on productivity. Updated and well maintained tools are a good resource to guarantee high productivity. d) Labour skills and experience are other factors having impact upon the productivity of crews or teams. Higher labour skills will guarantee greater efficiency in completion of the job with skilled and experienced workers generally being more effective in determining the work steps in order to complete the job in the shortest time possible.

Pricing drywall work Pricing drywall jobs includes pricing materials, equipment and labour. Each of the above pricing elements is important and the correct determination for each of them is the key for competitive pricing.

MKA CANADA, INC. SEEKING FULL TIME CONSTRUCTION ESTIMATOR FOR CALGARY OFFICE A minimum of 2+ years of experience in construction estimating/quantity surveying related to industrial or institutional remediation following accident or disaster, and 12+ months experience managing project costs; Completion of University (Quantity Surveying or related field); English speaking and writing is critical to the position.

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16 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

1. Materials: Pricing of materials is related to determining the proper materials to satisfy specification requirements and the best value. The best price sometimes is not the lowest price received from suppliers or manufacturers. The estimator has to be careful in analyzing what is included in the price. There are several

suppliers that provide the service of delivering and unloading the materials according to quantities required. Usually their prices are not the lowest but, considering the above productivity factors and quality control requirements, they may represent the best value for the job.

2. Equipment: Pricing equipment usually consists of pricing scaffoldings and scissor lifts. If the drywall company owns scaffoldings and scissor lifts, an equivalent usage fee and depreciation fee will be applied according to the time of usage on the job site. For any rental equipment, the rental price should be evaluated according to the equipment’s condition, the terms of maintenance and shipping policy, etc.

3. Labour: Pricing labour is the trickiest part of the pricing process. In the drywall business, contractors can be union members or non-union members. Due to this reality, the estimator must apply the correct labour rates depending on what type of labour is utilized. For union members, the labour rates are good for one year in a 3 year union agreement. So the

estimator can apply the rates for the one year term knowing the escalation for the other 2 years. For non-union contractors, estimators must use the current market labour rates which are variable in seasonal terms and also vary depending on the duration of the project. In union rates there are also two types of labour payments: piece-work, and hourly. Piece-work payments apply to residential projects where the application of labour rates to the quantity of work completed is based upon hourly, daily, weekly or bi- weekly rates.

The application of piece-work prices is relatively easy to estimate, as it is a simple process of applying unit labour rates to the quantities determined from the take-off. In ICI projects, the labour cost is estimated according to the number of hours worked.

which may increase the estimated cost of labour e.g. location, logistics, availability of labour etc. This structured approach forms the basis for calculating unit rates that accurately reflect the labour component that forms part of the drywall estimate.

4. Unit Prices: Knowing the hourly rates alone is not sufficient to price the estimated quantities of work, irrespective of ICI or residential. In converting hourly rates into unit prices, the estimator has to determine the level of expected productivity recognizing the specific nature of the work to be carried out and multiple variables

Amir Lopci, B.Eng., PQS has been involved in the construction industry for over 30 years and is currently a professor at George Brown College, teaching Construction Estimating.

Bibliography: Including, Chapter 11- Planning, Execution & Inspection (2014) in The Gypsum Construction Handbook (Seventh edition, page 576 pages). Chicago: Wiley.

Division 09: Finishings. (2006) in Method of Measurement of Construction Works (Eighth edition, page 153). Markham: Canadian Institute of Quantity Surveyors.

Summer 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 17

MEMBER INTERVIEW

Louis Yves LeBeau PROJECT MANAGEMENT VISIONARY

LOUIS YVES LEBEAU Eng., M.Eng., ECA Louis Yves is the President of Macogep and a pioneer of project management.

Before establishing Macogep, Louis Yves worked in different engineering and construction firms in the energy and infrastructure sectors. As Macogep’s head since 1989, Louis Yves has overseen implementation and management of some of Quebec’s most important projects.

Louis Yves experience permits quick identification and resolution of all issues at every project phase.

He is regularly asked to serve as a conference speaker and expert witness. Louis Yves has also taught in university for over 10 years. Deeply committed to his community, Louis Yves LeBeau acted as mayor of Saint-AlphonseRodriguez, from 2005 to 2009.

When was your first introduction to construction?

When I was seven years old, I wanted to be an actuary or an engineer.

I always liked numbers and statistics.

But soon I realized that I did not want to spend my life in front of a computer.

Since I always enjoyed building and developing things too, I decided to be an engineer. And, believe me, I have never regretted it.

When and where did you start your career?

In 1981, after having finished my studies at Polytechnique Montréal,

I was hired by Trans Québec and Maritimes Pipeline to be a cost controller for their pipeline extension project in Eastern Canada. At just 23 years old, I found myself working on a project valued at $1.2 billion. Our unit of cost controllers was truly at the centre of the project. We were constantly asked for our input, especially when there were media events—and with the project being what it was, there were a lot of those. I had a close working relationship with upper management, and they consulted with me often. This was a key period for me, as it really kick-started my career. When the project was halted two years later, layoffs soon followed.

At the outset of the project, we were 800.

Two years later, we were down to 50.

I went from being a cost controller to the person responsible for implementing a cost control and planning system for the front-end engineering. Then I became the contract administrator and cost controller for the project’s final construction site, the Trois-RivièresQuébec City section. I really learned the ropes at this time.

What types of projects have you worked on?

I have worked on all project types: buildings, infrastructure, power and industrial. The way I see it, there are no small projects or small clients. I always chose to work on projects on which my extensive experience and expertise could bring added value to clients.

Is there a particular project that you would like to tell us about?

I have learned something from each of the projects I have managed. But the Manic 5 PA generating station really made an impact on me as a person.

I was 28 years old and managing a team of more than 250 employees

18 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

(construction workers and members of the project management team). Most of them were older than I was and had extensive experience working on projects that were both large in scale and highly technical. Construction at the site had been on a three-year hiatus and was now being restarted.

It was a real Pandora’s Box. The technical and financial conditions were complicated. We had to take a shortterm financial loss in order to get the project on track. The guys were often away from their families for five or six weeks straight. They were on edge.

It was tough. But we delivered the project on time and we recovered the money we had lost. That is when I understood the importance of managing the human aspects of a project, regardless of its size.

What has been your path to a leadership position?

I worked for owners, consultants and general contractors before founding my own company in 1989. The first 10 years were really rocky, as the construction industry was in a slump.

But I hung on. In 1998, I was awarded a contract worth $5 million from Portland Natural Gas Transmission System. I hired more than 65 people.

That is what really got me in the game.

What has been your approach to Continuing Professional Development?

Continuing to learn and progress is essential. From 1990 to 2002, I taught project management at Polytechnique Montréal. I worked during the day while also teaching at the undergraduate level during the day and at the master’s level at night. As an instructor, I did a lot of research. Also, I completed Continued on page 20.

ENTRETIEN AVEC

Louis Yves LeBeau VISIONNAIRE EN GESTION DE PROJET Quand avez-vous vécu votre première expérience dans le monde de la construction? À 7 ans, j’hésitais entre la carrière d’actuaire et celle d’ingénieur. J’ai toujours aimé les chiffres et les statistiques.

Mais rapidement, l’idée de passer ma vie derrière un ordinateur m’a déplu. J’ai toujours aimé construire et développer.

Alors, je me suis finalement décidé pour la carrière d’ingénieur. Et croyez-moi, je n’ai jamais regretté mon choix.

Quand et où avez-vous entamé votre carrière?

En 1981, après avoir fini Polytechnique, j’ai été engagé comme contrôleur de coût par Gazoduc Trans Québec et Maritimes sur leur projet de prolongement du réseau de gazoduc dans l’Est du Canada. J’avais 23 ans et je travaillais sur un projet de 1,2 milliard de dollars. Notre unité de contrôleurs de coûts était le centre névralgique du projet. Nous étions sans cesse sollicités, surtout quand il y avait des sorties médiatiques.

Et avec un projet pareil, il y en a eu beaucoup. J’avais un très bon contact avec la haute direction qui me consultait souvent. Cette période a été déterminante pour moi, car elle a propulsé ma carrière. Quand le projet a été arrêté, deux ans plus tard, les licenciements n’ont pas tardé. Nous étions 800 au début du projet. Deux ans plus tard, nous n’étions plus que 50. De contrôleur de coût, je suis devenu responsable de l’Implantation d’un système de contrôle de coût et de planification pour le « front end engineering » et ensuite administrateur de contrats et contrôleur de coûts sur le dernier chantier en construction du projet, le tronçon Trois-RivièresQuébec. J’ai vraiment fait mes classes à cette époque.

Sur quels types de projet avez-vous travaillé?

J’ai travaillé sur tous types de projet.

Bâtiment, infrastructure, énergie, industrie. Selon moi, il n’y a pas de petit projet ou de petit client. J’ai toujours choisi des projets sur lesquels ma longue expérience et mon expertise offraient une vraie valeur ajoutée à mes clients.

Y a-t-il un projet en particulier que vous souhaiteriez partager avec nous?

J’ai appris sur tous les projets que j’ai gérés. Mais celui de la centrale Manic 5 PA m’a particulièrement marqué au niveau humain. J’avais 28 ans et je gérais une équipe de plus de 250 employés (des ouvriers, des membres de l’équipe de direction de projet), la plupart plus âgés que moi et dotés d’une longue expérience sur des projets d’envergure et très techniques.

Il s’agissait d’une reprise de chantier après 3 ans de fermeture. C’était une véritable boîte de Pandore. Les conditions techniques et financières étaient difficiles. Il a fallu supporter des pertes financières à court terme pour mener à bien le projet. Les gars étaient séparés de leur famille parfois pendant 5 à 6 semaines d’affilée.

Ils étaient à cran. C’était très dur.

Mais nous avons livré le chantier à la date prévue et nous avons récupéré nos pertes financières. C’est à ce moment-là que j’ai compris l’importance de gérer le facteur humain dans un projet, quelle que soit l’envergure.

Quel chemin avez-vous emprunté pour atteindre le rang de leader?

J’ai travaillé pour des propriétaires, des consultants et des entrepreneurs généraux avant de fonder mon entreprise en 1989. Les dix premières années ont été très difficiles, car l’industrie de la

LOUIS YVES LEBEAU ing., M.Ing., ÉCA Président de Macogep, Louis Yves LeBeau est un précurseur en gestion de projets.

Avant de fonder Macogep, il a travaillé pour plusieurs entreprises couvrant différents secteurs d’activités : énergie, transport, infrastructures et bâtiment. À la tête de Macogep depuis 1989, il a dirigé la mise en œuvre et la gestion de plusieurs projets emblématiques du Québec. Son expérience lui permet d’identifier et de trouver rapidement des solutions à toutes les étapes d’un projet. Il a enseigné dans le milieu universitaire pendant plus de 10 ans et est régulièrement appelé à titre de conférencier et de témoin expert devant les tribunaux. Très impliqué dans sa communauté, il a également été maire de sa communauté Saint-AlphonseRodriguez de 2005 à 2009. construction vivait des années de misère.

Mais je me suis accroché. En 1998, j’ai obtenu un contrat de 5 millions de $ d’honoraires avec Portland Natural Gaz Transmission System. J’ai engagé plus de 65 personnes. C’est ce qui m’a définitivement lancé.

Quelle approche à la formation professionnelle continue avez-vous adoptée?

Continuer à apprendre et à évoluer, c’est fondamental. De 1990 à 2002, j’ai enseigné la gestion de projet à Suite à la page 20.

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

Continued from page 18 a master’s in Engineering part-time from 1994 to 1997. Essentially, my professional development has been ongoing. Since 2002, I have been giving workshops and seminars, and attending conferences. I believe that staying up-to-date is crucial, especially with today’s rapidly changing technology.

I am currently focussing on building information management (BIM) with my team. I think that, on projects, members of the project management team should act as the BIM manager.

What challenges do you see for construction professionals?

Since its inception, Macogep has sought to act as a partner for project owners from the public and private sectors.

We have always remained totally independent from all architectural, consulting engineering and construction firms to ensure there is never any

conflict of interest. Our business model is based on integrity, rigour and honesty. In light of the turbulence in Quebec’s construction industry in the past 10 years and the public’s resulting distrust of the sector, our challenge is to prove that we bring added value to cost and project optimization —and especially that we can do it in a way that is clean and honest.

As an industry leader, is there a particular area that you have focussed your passion on?

My passion is project management. But not any old way, Project management that is carried out independently. That is why I created Macogep. I wanted to manage projects properly, based on best practices, so that I could have a significant impact on project outcomes and the final user experience. I apply this passion for a job well done, and the

values it transmits, to everything I do. At work, obviously, and also when practicing my favourite sport, cycling.

The same principle guides me when working in my community of SaintAlphonse-Rodriguez, where I spent five years as mayor. I also apply this passion to the various causes I support, including United Way-Centraide and the SAS-MAZDA-MACOGEP women’s cycling team.

Do you have any concluding thoughts?

As I mentioned before, the construction industry is going to have to work hard to restore its image. As a member of the board of directors at the Canadian Association of Consulting Quantity Surveyors (CACQS), a director of the Quebec chapter of the CACQS and a member of the Canadian Institute of Quantity Surveyors (CIQS), I have every intention of contributing to that effort!

Suite de la page 19 Polytechnique. Je travaillais le jour, j’enseignais le jour au baccalauréat et le soir à la maîtrise. En tant qu’enseignant, j’ai fait beaucoup de recherche. En plus, de 1994 à 1997, j’ai fait ma maîtrise en Ingénierie à temps partiel.

J’ai donc toujours été en développement professionnel continu. Depuis 2002, je donne des conférences et des séminaires, et j’assiste à des congrès.

Pour moi, c’est indispensable de se tenir informé, surtout à l’heure actuelle où les technologies évoluent très rapidement.

Actuellement, je mets beaucoup l’emphase sur le développement du BIM (Building Information Management) au sein de notre équipe. Je suis convaincu que sur un projet, c’est un membre de l’équipe de gestion de projet qui doit agir à titre de BIM Manager.

Selon vous, quels défis attendent les professionnels de la construction?

Dès sa fondation, Macogep s’est positionné comme partenaire des

maîtres d’ouvrage publics et privés.

Nous avons toujours été totalement indépendants des firmes d’architectes, d’ingénieurs-conseils et des entreprises de construction, pour éviter les conflits d’intérêts. Notre modèle d’affaires est basé sur l’intégrité, la rigueur et l’honnêteté. Au vu des dérives de l’industrie de la construction au Québec ces dix dernières années, et de la suspicion du public en général à l’égard du secteur, notre grand défi sera de démontrer la valeur ajoutée de notre rôle sur l’optimisation des coûts et des projets et surtout qu’on peut le faire de manière intègre et honnête.

En tant que leader dans l’industrie, y a-t-il un domaine qui vous passionne?

Ma passion, c’est la gestion de projets.

Mais pas n’importe laquelle. Celle qui se fait de manière indépendante.

C’est pour cela que j’ai fondé Macogep.

Je voulais faire de la gestion de projet dans les règles de l’art, sur base des

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

meilleures pratiques en la matière, pour avoir un impact déterminant sur le résultat du projet et l’expérience de l’utilisateur final. Cette passion du travail bien fait, et les valeurs qu’elle véhicule, je les applique partout.

Au travail, bien sûr. Au vélo, ma passion sportive. Dans ma communauté de Saint-Alphonse-Rodriguez, dont j’ai été maire pendant cinq ans. Dans les différentes causes que je soutiens, dont Centraide et l’équipe cycliste féminine SAS-MAZDA-MACOGEP. Avez-vous une dernière réflexion avant de conclure cette entrevue?

Comme je l’ai dit précédemment, l’industrie de la construction a beaucoup de travail à faire pour redorer son blason. En tant que membre du conseil d’administration de la CACQS, directeur pour le chapitre québécois de la CACQS, et membre de la CIQS, j’ai bien l’intention d’y contribuer!

MACOGEP AT A GLANCE 50

IN JUST ONE YEAR…

143

PROJECT MANAGERS including:

ESTIMATIONS

9 Project Management Professionals (PMP)

carried out on

4 Professional Quantity Surveyors (PQS) 1 Certified Value Specialist (CVS) 1 Associate Value Specialist (AVS) 1 Certified Specialist in LEED Building Design and Construction.

22

projects worth

$2.3 BILLION.

MANDATES completed in CONSTRUCTION MANAGEMENT on projects worth $1.98 BILLION.

24 MANDATES IN PROJECT GOVERNANCE Implementation strategies, project business cases, audit and review processes, dispute prevention and settlement on projects worth $1.5 BILLION.

26

10

YEARS OF OPERATIONS Founded in 1989 by Louis Yves

PROJECTS focusing on SUSTAINABLE DEVELOPMENT including the Net Zero

LeBEAU Macogep’s head office is located in MONTRÉAL and its

multi-purpose library in Varennes,

subsidiary is in PARIS.

8 arenas certified LEED SILVER, and the Saint-Laurent Cultural Centre in Montréal certified LEED GOLD.

A significant presence in

ALL SECTORS

– building, industry, energy, infrastructure –

And also, a

PROUD SPONSOR of Canada’s

in CANADA, in the UNITED STATES and in FRANCE

professional women’s cycling team, SAS-Mazda-

for major clients from the private and the

Macogep powered by Specialized. Macogep also

public sectors.

sponsors CENTRAIDE, the Grand défi Pierre Lavoie and the Week of the White Rose held by the Polytechnique Montréal foundation.

MACOGEP.COM

WE’RE LEADERS IN PROJECT MANAGEMENT. PUT YOUR TRUST IN US.

ADOPTING AN EFFECTIVE ASSET STRATEGY Life cycle costing and facilities management The Quantity Surveyor’s role INTRODUCTION AND PERSPECTIVE It has long been the norm that initial capital costs are what clients typically consider and what they focus on. This is inevitable, as this will be the key consideration for the feasibility of most projects and what clients typically understand. However, consideration of long-term costs is often not appreciated. I would like to use the analogy of a car: when we buy a car, affordability and budget are the initial considerations. Rarely do we consider long term operating costs: how often do we need to service the car, how often do we need to refuel, minor services that may be needed such as oil changes, change in tires and cleaning.

Sustainability considerations are also often an after-thought.

There is more carbon tax to pay for larger vehicles that emit more carbon. We rarely think of the future costs for two reasons: (1) we probably may not know this information and (2) what money we have now to spend is more of a consideration.

CONSTRUCTION COST

O&M COST

BUSINESS COST

22 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

With property investments that involve a great deal of expenditure, long term costs should be more of a consideration; the common notion that building costs are one-off costs is far from the truth, and the costs of buildings do not end when the final costs have been negotiated and agreed with the contractor.

It is no longer sufficient to just consider the initial capital costs of buildings. The costs during the lifetime of the building will reveal the true financial impact of the investment. Life cycle costs and facilities management (FM) costs for a building over a 30 year cycle are estimated at five times the capital costs and the cost of occupation, which includes energy, salaries and overhead costs which could be 200 times greater (ratio of 1:5:200). Initial capital costs are just the tip of the iceberg.

(Source: Turner & Townsend) LIFE CYCLE COSTS AND FM COSTS DEFINED There is often confusion as to what constitutes life cycle costs and what constitutes facilities management costs. Life cycle costs constitute major repair and replacement, such as periodic replacement of components like replacement of a boiler, doors or repainting, but also minor replacement such as door hardware, grouting of tiles or replacement of active components of mechanical and electrical equipment. Facilities management costs are more all-encompassing and cover a wide range of areas, which can be categorized as hard, which refers to the physical maintenance of buildings and equipment and soft, which include labour intensive activities such cleaning and catering. The differential between life cycle cost and hard facilities management is often difficult to make; however, as a general rule, facilities management costs, which are related to the building fabric, are work activities that occur on an annual basis or more frequently, such as annual maintenance on equipment and changing light bulbs.

CONVINCING CLIENTS Life cycle and facilities management costs are slowly becoming a client requirement, but whether a client wishes to consider life cycle and facilities management costs is very much dependent on what their value drivers are. A developer developing for sale may not consider having a quantity surveyor provide costs for life cycle and facilities management a useful exercise, unless consideration of long-term costs makes it an attractive proposition to purchasers. Purchasers may be swayed if they are purchasing a building that will run efficiently and has the potential to save them money in the long run. An owner/occupier would place value on knowing the long-term costs as well as ensuring

minimum disruption of facilities in use; choice of materials/ equipment would be important as this would dictate frequency of replacement cycles.A developer building for commercial lease would also focus on minimum disruption in use to ensure that tenants are satisfied. However, the focus may be on functional utility and durability of components – the reason being that tenants may change often (necessitating a change in components in any case) and if components are retained, hopefully minimal work is needed. An example of choice of components may be as detailed as the choice of paint finish, e.g., eggshell vs emulsion paint. Eggshell is more durable and you can wash it, which would reduce the paint cycles whereas you cannot wash emulsion paint, hence cycles will tend to be more frequent.

The public sector has long been an advocate of consideration of life cycle and facilities management costs, with many costing commissions requiring consideration of life cycle costs.

Also, with public private partnerships (P3) projects, it is key to consider the long-term cost of ownership with full transparency.

Life cycle costing and facilities management costing usually focus on the long term building specific costs; however, if non-construction costs such as revenue streams, staffing costs, catering, reception, etc. are considered, then a facilities total return on investment over the long-term could be determined. Under LEED v4, credits now support a life-cycle approach in designs and building material choices. In particular through the Energy Atmosphere Credit (Building Commissioning energy audit option), determination of operational cost savings is required to be documented.

QUANTITY SURVEYING ASSET STRATEGY SERVICES The traditional service of a quantity surveyor has been supporting clients in determining initial capital costs; however, our skillset enables us to support them in a ‘cradle-to-grave’ advisory. Quantity surveyors can play a role in, and take advantage of opportunities offered to clients, which can be as follows: Shadow Bid Life Cycle/FM Cost Models and P3 Bid Support We can provide life cycle/FM shadow costing as bid support to the private sector partner. Whereas capital costs may be easier to predict, life cycle/FM costs are relatively more difficult to ascertain both in terms of limited actual data and taking into account the competitive requirement of a bid.

Industry publications tend to err on the side of caution and the common rule of thumb for life cycle costs, i.e. 1% to 2% annual life cycle expenditure as a percentage capital expenditure may be too conservative.

Benchmarking facilities management costs will depend on what facilities management services are there, and may not be as easy to holistically benchmark.

Life Cycle Option Costing Just as option costing is done with initial capital costs, life cycle option costing should be undertaken in parallel, which is often not a priority for clients. Clients need to be educated in that choosing a cheaper product could end up Summer 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 23

costing more in the long run with more frequent repairs and replacement cycles. Life Cycle Option Costing could play a key role in Value Engineering and should be run in conjunction when this is undertaken for initial capital costs.

Sustainability Option Costing and Carbon Emission Analysis Unfortunately, one the realities of the construction industry (which has the greatest impact on the environment in terms of resource use, energy use and waste), is that clients are often not convinced on incorporating sustainable options unless savings can be demonstrated. This can be done through preparing a payback analysis determining at what point the energy savings justify the cost of renewable technologies and/or enhanced insulation in the envelope.

However, this can also be undertaken through a life cycle analysis using a discounted cash flow, which may present better information than a payback analysis. Associated with incorporating sustainable options is the impact on carbon emissions; as part of the life cycle analysis we could also provide a carbon analysis study.

Capital Reserve Fund Studies A capital reserve fund study supports a client in the construction environment in anticipating and preparing for future replacement of assets, and incorporates the technique of life cycle costing. It is a long-range financial planning tool that identifies the status of capital reserves and provides a funding plan to offset future major replacement obligations.

QSM

MECHANICAL AND ELECTRICAL COST CONSULTING

In British Columbia, a form of a capital reserve fund study in the shape of depreciation reports has become statutory through the Strata Property Act. For strata corporations formed on or before December 14, 2011, a depreciation report was required by December 13, 2013, unless they were exempt four or fewer strata lots or if three quarters of the annual vote waived the requirement. The depreciation report is needed every three years. Capital reserve fund studies/depreciation reports are essentially an asset strategy report. Supporting clients in knowing their future liabilities is key to making provision for future expenditure.

FURTHER THOUGHTS Traditionally we provide clients with a capital cost plan, and potentially a life cycle model (if required); however, there is the potential to produce a ‘cradle-to-grave’ cost plan which can incorporate life cycle costs, facilities management costs and carbon emissions (both in terms of operational and embodied carbon) and even costs of disposal at the end of its life.

Turner & Townsend’s Asset Strategy team is currently working on offering clients an enhanced asset strategy service to further assist clients with decision making. Their view is that life cycle and facilities management costing is not a ‘one hit wonder’ and are recommending proactive asset strategies which include: 1. Investment decisions upfront through life cycle option costing. This could also include ‘FM’ policing in design team meetings to maximize operations.

2. Life cycle management – to review life cycle funds on a six monthly/annual basis.

3. Asset strategy assurance, which may include undertaking a condition assessment to determine actual condition of components and ensuring components are not being run to failure, and taking remedial action before it occurs.

CONCLUSION The role of the Quantity Surveyor is varied and diverse and our skillset enables us to offer clients valued insight into all aspects of their property investments. Our traditional role of capital costs experts can far expand into the realms of supporting clients and offering an all-encompassing asset strategy role.

ABOUT THE AUTHOR

Dennis M. Smith PQS dmsmith@xplornet.com www.qsmcon.ca

416-949-8540 OFFICE 905-649-8540 CELL

Let QSM bring its experience to your next project!

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

Angela Lai, FRICS, PQS, LEED AP O+M is the President of CIQS-BC, Vice Chair of RICS-BC and a Senior Consultant with Turner & Townsend, a global construction cost consultancy. Angela has over 15 years experience in the construction and development industry spanning South Africa, the UK and Canada. Angela’s experience is diverse having worked as both as a cost manager and a management consultant, and has specialist expertise in sustainability, life cycle and FM costing. In addition, Angela also teaches part-time at BCIT and sits on the Program Advisory Board for the Construction Management program.

E E V SA DAT E H T

3RD CIQS CONGRESS Hosted By CIQS - Ontario

TORONTO - JUNE 24 - 26, 2016 BEST PRACTICES FOR PROJECT DELIVERY MINI VACATION: This is an event that is also geared towards couples or families, as it offers plenty of options for everyone, so why not mark this event down on your calendars and plan a mini-vacation in parallel with supporting the CIQS. More information will become available in the Fall Edition of the Construction Economist, including the venue, information on how to register, technical sessions, golf and leisure, sponsorship opportunities, etc.

EXQUISITE VENUE: The 3rd CIQS Congress, to be hosted by CIQS – Ontario, will take place June 24-26, 2016 in Toronto. The venue is one of Toronto’s crowning jewels, a boutique hotel dating back to 1914 and nestled in the beautiful Humber Valley. From exquisite formal guest suites set in old-world English architectural design, to elegant fine dining, this venue provides maximum comfort at a location that is far from the ordinary.

• Start your weekend off with a hike or bike ride through Toronto’s Bike and Walking Trail System which adjoins the venue.

• Enjoy a kayak ride through one of Toronto’s major arterial rivers, then finish off your physical activity with a leisurely game of tennis.

• After your day in the sun is over, you can have a traditional afternoon English tea and relax while sitting in the lush landscaped courtyard, overlooking the ravine.

• Step into a sanctuary created to heal both the mind and body. Wrap yourself in a plush bathrobe and enjoy the tranquility of the on-site spa.

• Enjoy an exceptional dinner in a formally-designed Dining Room setting and then escape to the sounds of some of Toronto’s most acclaimed jazz musicians in the Jazz Bar and Lounge.

• In addition to enjoying some of Toronto’s premiere shopping locales all within a 2 km radius, throw in a round of golf following a banquetstyle breakfast fit for a King or Queen and you have just had one of the best weekends of your life.

CELEBRATION: During this event, we will also be celebrating the forthcoming retirement of our Executive Director, Mrs. Lois Metcalfe, who will have served the CIQS for 38 years at the Congress and is retiring in 2016. Lois has been instrumental during the CIQS’s formative years and subsequent expansion. This is a fitting event and venue to celebrate her tremendous impact on the CIQS among many friends and colleagues.

REGISTRATION: Please be sure to mark this date on your calendars, as this is an event you will certainly not want to miss. Whilst registration details will follow, if you are interested in sponsorship opportunities for the CIQS Congress or require any other information, please send an email to lois.metcalfe@ciqs-ontario.org.

2016 CIQS CONGRESS ORGANIZING COMMITTEE Chris Court, Lenny Simonelli, David Lai, Sheri Thompson, Ian Duncan, Lois Metcalfe, Pat Cantin and Arif Ghaffur.

• TECHNICAL SESSIONS • PANEL DISCUSSIONS • SUBJECT MATTER EXPERTS • SENIOR INDUSTRY PROFESSIONALS • CIQS INFORMATION MEETING • COCKTAIL RECEPTION & DINNER • GOLF & LEISURE ACTIVITIES • NETWORKING OPPORTUNITIES • SPONSORSHIP OPPORTUNITIES

TECHNICAL SESSIONS: Senior industry professionals will host a series of moderated presentations on topical issues facing the construction industry. In addition to learning about current practices and developments, participants will have the opportunity to interact in an environment aimed at exploring best practices and knowledge transfer.

Summer 2015 | www.ciqs.org | CONSTRUCTION ECONOMIST | 25

CPD Corner

The goal of ‘Continuous’ Professional Development

I

n preparation for a busy summer, I am compelled to remind everyone of the importance to keeping up with earning and tracking your continuing professional development (CPD) points.

Over the last couple of years, while serving in the role as the CPD Committee Chair for CIQS, I realized that it is a good idea to get back to basics. Significantly, our mission statement as designation holders in the CIQS, as noted in our primary principal objectives, states: “to promote and advance the professional status of quantity surveyors in Canada to the highest standards of competence and integrity so as to ensure the protection of the public in all matters concerning the profession.”

So, what does that mean in our role as developing professionals? When I first started down the road to become an estimator and decided to take the steps to become a designation holder of CIQS on my way to becoming a professional quantity surveyor, I honestly had no idea how that road would travel. Remembering back to when I first joined, I recall reading the aims and principal objectives of CIQS and I knew those words were something you could bank on. The opportunity back then to earn a professional designation was important. To be recognized as a construction estimator was an inspiring goal to a young professional. It was not just words on paper, it was an organization that was focused on the goals needed to achieve the highest standards of its profession. The words gave me the impression that joining the CIQS was a real accomplishment. Those words and the desire to commit to that goal have never changed in my professional life.

So, what does it mean to me now that I have been a designation holder of this time-honored profession for over a decade? I am reminded of the CIQS

designation holders I have dealt with in my local affiliate and the designated holders I have met through my travels across Canada. For each and every designation holder whom I have met, there is no doubt in my mind that there is a true desire to be a part of a team and a profession we all support.

The members in my local affiliate are some of the best in their fields whether it be consulting, estimating, project managing, or whatever task is set before them.

Those words and the desire to commit to that goal have never changed in my professional life.

It is not to say that those who are not designation holders of CIQS are any less capable; however, there is a reward that comes from being a part of a network of professionals who desire to achieve the same high working standards and integrity we all aspire to reach. Through personal professional development, not just limited to the standards of everyday work experience, a broader mind becomes open to find new challenges and interactions.

Our clients and co-workers should know us by our skills and talents. However, it is by our everyday actions and dealings that we are given the opportunity to show our principals our strengths.

The necessary task of continuing professional development is the means in which our designation holders maintain their knowledge and skills related to becoming or being a Professional Quantity Surveyor. Remember that, in our ever

26 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

David Dooks, PQS

changing world of construction, those who are the most knowledgeable of current trends and developments are usually the ones who rise to the top. Through competence and integrity we earn the trust of clients and colleagues, so gaining recognition for our achievements and quality of work. The easiest way to earn CPD points is to attend CIQS activities such as affiliate events and annual general meetings. We are always glad to have a good showing at events as reward for our volunteered efforts. The CIQS website has a list of local events hosted by your affiliates, construction associations and local colleges. If you have some time on your summer vacation grab some CIQS reading source materials and other construction related magazines to stay current on trending news topics.

For those looking for a mentoring role, please think about contacting your local construction association to take on the role of mentoring a group of estimating students from your local trades schools in preparing a bid for “TCIC Simulated Student Bid Competition”. This year, the competition included 57 student bid teams representing eight schools from across Canada. Our local construction administration technology program in the Maritimes had three teams participate.

Also remember that if you participate in social media groups such as a LinkedIn or Twitter, please remember to follow the CIQS pages. There are numerous CPD point opportunities to be found in construction trade articles, watching webinars, finding locations for local trade shows, and endless chats regarding estimating and construction found on LinkedIn pages. Finally, do not forget to take advantage of the online CPD module located in the “Members Only” section of www.ciqs.org to help keep track of your CPD points.

Education Corner

David Lai, PQS (F)

Busy quarter for CIQS Membership Committee

B

Of the 187 new applications, 144 were completed with 43 waiting for more information. There were five MRICS applicants, one GSC applicant and 26 student applicants. Of the 26 student applicants, four have withdrawn as they were deemed not full-time students.

etween April 1, 2015 and June 30, 2015 the Membership Committee has reviewed 187 new membership applications and nine applications for re-assessment of membership. A breakdown of these applications is: Affiliate British Columbia

New

Applications Re-Assessment

54

0

Total 54

Prairies and NWT

33

1

34

Ontario

58

5

63

Quebec

5

2

7

Maritimes

5

0

5

Newfoundland and Labrador

2

0

2

Members at Large

30

1

31

Total

187

9

196

All of the re-assessments were completed.

In addition to membership applications, there were 22 queries made by existing members. The majority of the queries were regarding diaries, academics and Mature Candidate papers. Only two of these queries remain outstanding.

In the coming months, the CIQS – Prairies & NWT will be re-assessing the Bachelor of Technology in Construction Management program at NAIT and the certificate program in Professional Management specializing in Construction Management offered by the University of Calgary Continuing Education Department.

The May 2015 examinations were completed without any problems.

The examinations are currently being marked and the results will be made available soon.

Designation Holders - Leveraging your qualifications Are you a CIQS Designation Holder?

CIQS Designation Holders are key to expanding awareness of quantity surveying throughout Canada and the important role we play in the construction process. Leverage the value of your Professional Quantity Surveyor (PQS) and Construction Estimator Certified (CEC) designations and access highly specialized continuing professional development programs and a growing network of peers. Your CIQS membership includes: • Internationally recognized professional designations • Subscription to the Construction Economist journal • Regular updates on industry trends and issues via the CIQS newsletter • Invitation to the annual congress • Access to local CIQS affiliate meetings, events and mentoring programs • Special member rates for publications and seminars • Multiple opportunities for networking and professional development • Access to advertised job openings and posting of your resume on the CIQS website • Affinity programs, including auto and home insurance discounts • Access Insurance programs through agents qualified in our profession

…..Continuing to achieve success through involvement!

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

Legal Corner

What does your Client’s Course of Construction Policy really cover?

By David Miachika, Grant Mayovsky and Lauren Kristjanson of Borden Ladner Gervais, LLP

BC court interprets standard exclusion clause for first time after Design/Build Contractor denied coverage; awarded $8.5 million in insurable losses

A

recent case in British Columbia interprets a standard exclusion clause in a Course of Construction (COC) Policy for the first time: Acciona Infrastructure Canada Inc. v. Allianz Global Risks US Insurance Company et al, 2014 BCSC 1568 (“Acciona”).

While standard policy language is used in construction project insurance policies around the globe, there is minimal judicial commentary on the proper interpretation of these clauses by Canadian or other courts.

In Acciona, the Project was a $250 million P3 hospital extension of the Royal Jubilee Hospital in Victoria, BC, the largest primary patient care health facility on Vancouver Island. The Project was an eight storey concrete structure, comprising four wings connected to a central core. The structural design was complex with each floor consisting of thin suspended slabs (250 mm thick) with large spans (over 9 m). During construction, the slabs ‘over deflected;’ this resulted in the slabs throughout the facility not being level as planned.

The slabs required extensive remediation to meet the Project’s serviceability requirements of level floors. After being denied coverage for its claim for all remedial costs under the Project’s COC Policy, the Design/Build Contractor of the Project commenced litigation.

As the dispute surrounded coverage under the COC Policy, it required the Court to interpret and apply the language of the Policy.

The Court in Acciona summarized the principles that apply to the interpretation of insurance policies generally, including that: the primary interpretive principle is that when the language of the policy is unambiguous, the court should give effect to clear language, reading the contract as a whole; where the language of the insurance policy is ambiguous, the courts rely on general rules of contract construction; courts should avoid interpretations that would give rise to an unrealistic result or that would not have been in the contemplation of the parties at the time the policy was concluded; courts should also strive to ensure that similar insurance policies are construed consistently; and ambiguity in the language of an insurance policy is generally resolved in the insured’s favour (coverage provisions are interpreted broadly, and exclusion clauses narrowly) given that the insurer chose the policy wording.

In order to establish coverage under a COC Policy, the insured must show that the loss falls under the “Perils Insured” provision in the policy. In Acciona, the “Perils Insured” provision of the Policy contained a typical clause covering “ALL RISKS of direct physical loss of or damage to the property insured … except as hereinafter provided.” In this case, coverage was disputed by the insurers, in part, as the parties disagreed as to whether the over deflections and related effects to the suspended slabs constituted “damage” within the insuring agreement. The contractors argued that the over deflections and cracking was “physical loss” or damage within the meaning of the Perils Insured, defining “damage” as “harm or injury impairing the value or usefulness of something.”

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

The insurers argued that the over deflections and cracking of the slabs constituted defects in the slabs, and that regardless, the loss was not fortuitous, so did not fall under the Policy.

Overall, the Court found that the contractors had established coverage under the insuring agreement.

In particular, the Court confirmed that the over deflection and cracking of the concrete slabs constituted damage that was fortuitous as it was unexpected or unintended. As such, the loss was covered under the Perils Insured clause in the Policy. Given this initial finding of coverage under the Policy, the burden shifted to the insurers; if the insurers wanted to successfully maintain its denial of coverage, it needed to establish that an exclusion clause in the Policy excluded the loss or damage that otherwise fell within the Policy coverage.

This leads to the key issue in Acciona: the interpretation of a standard exclusion clause developed by the London Engineering Group, a UK think tank for the insurance industry which develops model policy wordings for its members for use in various insurance policies including COC and All Risks policies, referred to as “LEG2/96.” This is one of three model “defects” exclusion clauses (LEG 1/96, 2/96 and 3/96). LEG 1/96 contains the broadest exclusion, and therefore the narrowest coverage, LEG 3/96 contains the narrowest exclusion and broadest coverage. LEG 2/96 falls in the middle. Prior to Acciona, LEG 2/96 had not been interpreted by any court in the world, although it had been commented on in various articles and papers. As worded, the LEG2/96 clause excludes:

All costs rendered necessary by defects of material workmanship, design, plan, or specification, and should damage occur to any portion of the Insured Property containing any of the said defects the cost of replacement or rectification which is hereby excluded is that cost which would have been incurred if replacement or rectification of the Insured Property had been put in hand immediately prior to the said damage. For the purpose of this policy and not merely this exclusion it is understood and agreed that any portion of the Insured Property shall not be regarded as damaged solely by virtue of the existence of any defect of material workmanship, design, plan or specification.

The Court interpreted the exclusion clause has having the following distinct components which must be read together in order to give meaning to the clause as a whole: a) “All costs rendered necessary by defects of material workmanship, design, plan, or specification;” and b “Should damage occur to any portion of the Insured Property containing any of the said defects the cost of replacement or rectification which is hereby excluded is that cost which would have been incurred if replacement or rectification of the Insured Property had been put in hand immediately prior to the said damage.”

The Court further interpreted the clause to conclude that: the excluded costs are only those costs that would have remedied or rectified the defect immediately before any consequential or resulting damage occurred, but the exclusion does not extend to exclude the cost of rectifying or replacing the damaged property itself; and the

excluded costs crystallize immediately prior to the damage occurring and are thus limited to those costs that would have prevented the damage from happening.

The Court held that the exclusion was relevant as the loss was caused by a defect in workmanship, namely inadequate formwork and shoring/ reshoring procedures used during the pouring of the slabs. The Court then found that the ‘damage’ in this case was the cracking and over deflection of the concrete slabs. However, there was no evidence on which to quantify the costs that would have remedied or rectified the defect (i.e. the costs of implement proper formwork and shoring/reshoring procedures or incorporating additional camber into the formwork) except to say that they would have been minimal.

As such, the exclusion did not apply and the Court held that all remedial costs to the concrete slabs, corresponding site General Conditions, and profit were covered – totaling $8.5 million.

This case serves as a reminder for insurers that when they have language available to them that will remove an

ambiguity from the meaning of an exclusion clause or will clearly specify the scope of an exclusion, they should incorporate such language. Otherwise, normal principles of interpretation will apply, including the principle that coverage provisions will be interpreted broadly and exclusion clauses narrowly. Had the insurers intended the defects exclusion in the COC Policy to be interpreted similarly to the more typical ‘resulting damage’ clauses that appear in Canadian insurance policies, they should have incorporated such readily available language in the Policy.

In its successful claim, the Plaintiffs were represented by David Miachika, P. Eng. (dmiachika@blg.com; 604-640-4220), Grant Mayovsky (gmayovsky@blg.com; 604-640-4165), Chris O’Connor (COConnor@blg.com; 604-640-4125), and Lauren Kristjanson (lkristjanson@blg.com; 604-602-3460), all of the Borden Ladner Gervais LLP Construction and Engineering Group, in Vancouver, BC. This article was first published in Canadian Insurance Top Broker in the January 2015 issue.

QS Online Cost Consultants Inc. Halifax, Nova Scotia | p. 902 405-1504 | c. 902 488-1501 halifax@qsonlinecostconsultants.com www.qsonlinecostconsultants.com | www.qsonlineestimating.com

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

In Memoriam Thilak Bandara

Hanscomb is saddened to announce the passing of Thilak Bandara in December 2014.

Born and trained as a Quantity Surveyor in Sri Lanka, Mr. Bandara came to Canada in 2002 with 25 years of experience working in Sri Lanka and then the United Arab Emirates. His career with Hanscomb started in the Halifax office and a few years later he found his way across the country to Hanscomb’s Vancouver office where he stayed until 2014. Mr. Bandara had extensive

impacted by the loss of Mr. Bandara.

It resonated strongest in the Vancouver office where he spent his longest time with Hanscomb. Ken King, the current Vancouver manager, remembers him fondly with great admiration and respect.

Adrian Secu, who reported directly to Mr. Bandara writes: “He inspired and mentored me to become a better cost consultant and encouraged me to keep up with my education to become a PQS. It was a great pleasure and honor to work with Mr. Thilak Bandara and I know we all deeply regret his sudden passing.”

experience in mechanical, electrical and civil works that ranged from small to mega projects. In his 12 years with Hanscomb, Mr Bandara developed a remarkable portfolio working on some of Hanscomb’s most unique and complicated projects in Vancouver like the CFB Esquimalt jetty, Burrard Bridge lane additions and Golden Ears Bridge project. As well as the Halifax Harbour Clean Up, Montreal St. Lawrence Bridge, Saskatchewan Potash Mines and Alberta Fort McMurray modules.Recognized as a valuable resource and an enthusiastic individual, staff across the practice were

Congratulations to the following ‘Designation Holders’ who have qualified as a PQS or CEC (including reinstatements): CIQS – British Columbia Phoenix Feng, PQS Craig Hewitt, PQS Megan Luk, PQS Christopher Mullins, PQS Hui Xu, PQS

CIQS – Maritimes Erin Brownlow, PQS

CIQS – Members at Large Bolarinwa Dejonwo, PQS Pieter Carel Kunz, PQS

Mohammed K. Mohammadieh, CEC Kingsley Ojumoola, PQS Suganthan Pathmanathan, PQS Lauren Scammell, CEC Wing Hung Tang, CEC

CIQS – Ontario Roy Anderson, PQS Shawn Chickowski, CEC Casey Corriveau, PQS Peter Crerar, PQS Rouan du Rand, PQS Ali Faisal El Hussein, CEC

Leo M. Gutierrez, PQS Shawn Hickey, CEC Dominic B. Leadsom, PQS Colin Macdonald, PQS Sharibkhan Maradukhel, CEC Carmen Mares, PQS Gilbert Quintal, CEC John Spinelli, PQS Sun Nam Tsang, PQS

Charles Bichage, PQS Robert Gimoro, CEC Jayamathan Jeyarajah, CEC Irene Malang, CEC Finbar McLoughney, CEC Ma Aye Aye Myint, CEC Aderemi Clement Sanusi, PQS Parama Tirvassen, CEC Garry Zarowny, CEC

CIQS – Prairies and NWT

CIQS – Quebec

Peter Bannon, PQS John Beda, CEC

Didier Chung Foo, CEC

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30 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2015

Dispute Resolution Expertise

REVIEW IMPLEMENT DELIVER

Working with owners, contractors, subcontractors, suppliers, insurers, lawyers and other professionals, Lakeland has established a reputation for providing solution based approaches to the resolution of contractual issues. Our proven expertise extends to the implementation of issue-specific techniques that reduce uncertainty and ensure that resolution objectives are achieved.

Review records & Establish contractual entitlement Develop strategy for pursuit/defense & resolution Analyze delay, extensions of time & liquidated damages Assess specific claimable Amounts & damages, including:

Contemporary Records Review Assessment

Submission

 Additional site & head office overheads  Disruption & out of sequence working  Planned sequence & production impacts

Resolution

Results Oriented Western Canada th

Submit high-quality pursuit/defense documentation and reports Support dialogue, negotiations, mediation, arbitration & litigation

Contact

860 6 Avenue SW, #300, Calgary, Alberta, T2P 3E5.

403.537.5664

Eastern Canada

Daniel Josiah PQS, MRICS, GSC 2150 Winston Park Drive, #206-208, Email: dj@lakelandconsulting.com Oakville, Ontario, L6H 5V1.

647.637.1449 905.829.4000

www.lakelandconsulting.com