Construction Economist - Winter 2025

CONSTRUCTION

ECONOMIST CIQS.ORG WINTER 2025

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

OPPORTUNITIES IN CANADIAN CONSTRUCTON

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THE VOICE FOR CANADA'S CONSTRUCTION ECONOMISTS Showcase your company to an influential group of quantity surveyor professionals!

Our quarterly magazine provides up-to-date information about the Institute, technical articles and leadership profiles, and details about past and upcoming events.

CONSTRUCTION ECONOMIST CIQS.ORG FALL 2025

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

LIGHT RAIL TRANSIT SYSTEMS

ELECTRICAL INFRASTRUCTURE AND COST ANALYSIS

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To promote the professional status of Institute members by establishing and maintaining high standards and ethics, and fostering excellence through education and the interchange of knowledge and partnership with industry stakeholders.

CONSTRUCTION

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

CIQS.ORG

WINTER 2025

Canadian Institute of Quantity Surveyors (CIQS) Markham, ON info@ciqs.org CIQS EDITORIAL TEAM Chief Executive Officer Sheila Lennon, CAE ceo@ciqs.org Assistant Editors Kelsey Wright, Director - Certification & Membership kwright@ciqs.org CIQS BOARD OF DIRECTORS Chair Tammy Stockley, PQS(F) Vice-Chair Seán Hollywood, PQS Directors Ajibola Soboyejo, PQS David Dooks, PQS(F) Ibrahim Oladapo, PQS Eugène Shkor, CEC George Abraham Collaparambil, PQS Ryan Hendricks, PQS Janaka Ruwanpura, PQS Marc Brown, PQS Mykola Pulnyev, PQS Observer, Board Wendy Hobbs, PQS(F) Observer, YQS Brandon Roy, CEC Statements of fact and opinion contained within this journal are those of the authors, including subject matter experts. CIQS assumes no responsibility or liability for the content of such fact and opinion, nor do they represent the official policy of CIQS. Published by / Publié par 1200 Portage Avenue, Suite 200 Winnipeg, MB R3G 0T5 T. 204-975-0415 F. 204-947-2047 www.naylor.com Publisher Darryl Lazarenko Content Rachael Ryals Layout Mahender Veer

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Build Canada Homes and the Major Projects Office Could Present Major Opportunities

Effective oversight of rapid construction processes provides a path to project completion.

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THE QS RENAISSANCE: REDEFINING THE ROLE FOR A SMARTER, GREENER, FUTURE As we stand at the crossroads of digital disruption, climate imperatives, and shifting client expectations, the quantity surveying profession is experiencing a quiet yet significant transformation

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MOUNTAINS OF PAPERWORK: UNDERSTANDING THE IMPORTANCE OF CONSTRUCTION DOCUMENTS Analyzing the sheer magnitude of paperwork a Quantity Surveyor deals with on a daily basis

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QUANTITY SURVEYORS AS STRATEGIC DECARBONIZATION ADVISORS A strategic decarbonization advisor is a crucial expert in the construction industry, advising on comprehensive, actionable strategies to minimize greenhouse gas emissions

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DATA CENTRES: AN OVERVIEW Data centres are critical for storing, processing, and distributing data, serving as the foundation of IT infrastructure for businesses, cloud computing, and internet services

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BUILD CANADA HOMES AND THE MAJOR PROJECTS OFFICE COULD PRESENT MAJOR OPPORTUNITIES While simplified approval processes and rapid construction provide immense opportunities, effective oversight of all aspects of these new projects will be required to ensure that projects actually have a path to reach completion

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CIQS ADVOCACY: TRIPS TO OTTAWA AND EDMONTON In October, CIQS leadership and members travelled to Ottawa for two days of high-profile meetings with MPs, senators, and key government officials working to promote the value of members, the needs of the construction industry, and the work that needs to be done for Canadians

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IMPORTANCE OF INDEPENDENT EXPERT ANALYSIS IN CONSTRUCTION DISPUTES Walsh Construction Company of Canada v. Toronto Transit Commission is a recent case concerning the building of the Steeles West Subway Station, demonstrating the importance of experts engaging in their own independent analysis

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inside every issue 04 06 08

Chair’s Message Message de la présidente du conseil Message from the CEO

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Message de la directrice générale New Designation Holders Index to Advertisers ciqs.org | WINTER 2025 | Construction Economist 3

CHAIR’S MESSAGE

Economic Trends and Their Impact on Quantity Surveying

I

Tammy Stockley, Professional Quantity Surveyor (Fellow) Chair, CIQS/CIQS Board Director

n my previous Construction Economist article, I outlined the implementation of the 2025-2028 CIQS Strategic Plan and our vision of becoming a trusted stakeholder in construction and infrastructure projects across Canada. In this issue, I examine how current economic challenges are impacting project delivery and the crucial role we play in helping clients recalibrate their developments in response to these pressures.

In today’s volatile global economy, the role of the Professional Quantity Surveyor is increasingly shaped by the ability to respond to inflationary pressures, fluctuating interest rates, labour market constraints, and trade tariffs.

CIQS Professional Quantity Surveyor (PQS) and Construction Estimator Certified (CEC) members who serve as cost consultants and risk managers on projects are at the forefront of navigating the financial forces that are shaping Canada’s built environment.

CIQS Advocacy for Our Members

By the time this article is published, CIQS delegates will have completed the 2025 Days on the Hill advocacy initiative. These meetings with

4 Construction Economist | WINTER 2025 | ciqs.org

Members of Parliament, senators, senior policy advisors, and key stakeholders in Ottawa are vital to raise awareness of the CIQS and the essential role our members play throughout the lifecycle of construction projects.

With the introduction of Bill C-5, (which established the Federal Major Projects Office to facilitate efficient and expedited delivery of large-scale infrastructure projects), CIQS members must be engaged early in the project lifecycle to ensure maximum return on investment.

In advance of the 2025 Fall Budget, the CIQS submitted a Pre-Budget Submission to the Standing Committee on Finance with three key recommendations, which were also emphasized during the fall Hill Days.

1. To ensure optimal return on investment in federal infrastructure and nation-building initiatives, the federal government must commit to collaborating with industry stakeholders, particularly in the early stages of project planning and delivery. Early engagement supports strategic project management and drives greater efficiency, transparency, and long-term value.

2. The federal government must build on the success of Bill C-5 and reduce interprovincial trade barriers to promote the free trade of goods used in the infrastructure industry and increase worker mobility, particularly in the skilled trades. Bill C-5 should also promote additional investment in key infrastructure projects in energy, transportation, and trade.

3. The federal government must commit the necessary funding to tackle Canada’s housing crisis with Build Canada Homes by committing to implement robust oversight mechanisms for all allocated housing infrastructure investments. The Canadian housing crisis has reached a critical point, demanding urgent action.

The CIQS also contributed to Canada’s first National Infrastructure Assessment, and participated in the Housing, Infrastructure, Communities Canada Consultation on Build Canada Homes. Our advocacy reinforces that CIQS professionals (PQS and CEC) possess the training, experience, and ethical standards necessary to ensure public investments achieve meaningful and measurable outcomes.

Current Economic Trends

Today’s project delivery environment is challenged by post-pandemic market recovery, inflation, fluctuating interest rates, supply chain pressures, labour market restraints, and trade tariffs.

Each variable impacts project cost, risk, and timeline. Below is an analysis of how CIQS professionals are adapting and leading in these areas.

Inflation and Cost Escalation: Persistent inflation has necessitated a recalibration of traditional cost databases and benchmarking practices for CIQS professionals.

Cost estimates prepared even six months earlier may require updated validation, particularly for long-duration or phased projects. There is increased demand for frequent cost updates during pre-contract stages, greater use of escalation clauses in contracts, and increased emphasis on value engineering to mitigate rising material and labour costs.

Interest Rate Fluctuations: The cost of borrowing is reshaping investment decisions and projects that once appeared feasible may now be paused or reconsidered.

Professional Quantity Surveyors, particularly in advisory roles, can conduct robust feasibility studies and sensitivity analyses to account for higher financing costs and re-evaluate cash flow projections under different rate scenarios. Closer collaboration with lenders/developers/investors and expanded scope in lifecycle costing have become more critical than ever.

Supply Chain Pressures: Global supply chain instability, exacerbated by geopolitical tensions, continues

to affect the availability and pricing of construction materials. CIQS professionals are adapting by recommending alternative materials, assessing procurement timelines, and identifying optional sourcing strategies to mitigate risks. More strategic involvement in procurement planning and contract structuring is required to enhance collaboration with contractors/suppliers during early project stages.

Labour Market Restraints: Canada’s labour market faces significant strain due to workforce availability, demographic trends, and increased demands. Labour cost increases and potential delays have become substantial variables in project planning.

CIQS professionals assess labour availability risk, incorporate schedule-based cost forecasts, and advise project stakeholders on potential cost-time trade-offs when selecting construction methodologies or phasing options. Increased use of contingency allowances and labour risk premiums are needed, which CIQS members can apply based on their understanding of regional labour markets.

Trade Tariffs: The escalating trade tariffs between Canada and the United States have resulted in mutual tariffs with direct implication for the construction industry. CIQS members involved on projects are tasked with ensuring accurate cost estimates, controlling budgets, advising on procurement, and the trade tariffs are introducing new layers of complexity, uncertainty,

and risk to their responsibilities.

Early identification of tariff exposure during the budgeting phase is vital, and where possible, sourcing domestically is imperative as it avoids added tariff costs. Establishing a dedicated contingency reserve to account for trade tariff volatility impact is recommended.

Looking to the Future

Economic uncertainty has reaffirmed the critical role of PQS and CEC members as construction economists. We operate at the intersection of construction, finance, and procurement strategy; economic trends directly influence how CIQS professionals perform their core duties. As trusted advisors, we are uniquely positioned to guide clients through uncertainty, turning economic challenges into informed, resilient project decisions.

Through advocacy, education, and practice, the CIQS will continue to champion our members as essential contributors to Canada’s infrastructure and housing future. ■ Tammy Stockley, PQS(F), MRICS, GSC, AET Tammy began her career in Quantity Surveying in 1992 after graduating from Architectural Engineering Technology in St. John’s NL. Her professional career roles evolved from cost planner, cost consultant, senior cost consultant, associate, associate director, and to director in her current employment position.

ciqs.org | WINTER 2025 | Construction Economist 5

MESSAGE DE LA PRÉSIDENTE DU CONSEIL

Tendances économiques et leurs répercussions sur l’économie en construction

D

Tammy Stockley, Économiste en construction agréé « Fellow » Présidente de l’ICÉC/membre du conseil d’administration de l’ICÉC

ans mon précédent article dans le Construction Economist, j’ai décrit la mise en œuvre du plan stratégique 2025-2028 de l’ICÉC et notre vision de devenir une partie prenante de confiance dans les projets de construction et d’infrastructure au sein du Canada. Dans ce numéro, j’examine les répercussions que les défis économiques actuels ont sur la réalisation des projets et le rôle essentiel que nous jouons en aidant nos clients à recalibrer leurs initiatives en réponse à ces pressions.

Dans l’économie mondiale volatile d’aujourd’hui, le rôle d’économiste en construction agréé est de plus en plus déterminé par sa capacité à répondre aux pressions inflationnistes, à la fluctuation des taux d’intérêt, aux contraintes du marché du travail et aux tarifs douaniers.

Les membres économistes en construction agréés (ÉCA) et estimateurs en construction certifiés (ECC) de l’ICÉC agissent en tant que consultants en coûts et gestionnaires de risques sur les projets et sont à l’avant-garde de la maîtrise des forces financières qui façonnent l’environnement bâti du Canada.

L’ICÉC défend les intérêts de ses membres

Au moment de la publication de cet article, les représentants de l’ICÉC auront achevé l’initiative de sensibilisation des journées sur la Colline 2025. Ces réunions avec les députés, les sénateurs, les conseillers principaux en politiques et les principales parties prenantes à Ottawa sont essentielles pour faire connaître l’ICÉC et le rôle essentiel que jouent 6 Construction Economist | WINTER 2025 | ciqs.org

nos membres tout au long du cycle de vie des projets de construction.

Avec l’introduction du projet de loi C-5 (qui a créé le Bureau fédéral des grands projets pour soutenir la réalisation efficace et rapide des projets d’infrastructure à grande échelle), les membres de l’ICÉC doivent être impliqués dès le début du cycle de vie du projet pour garantir un retour sur investissement maximal.

Avant le budget d’automne 2025, l’ICÉC a soumis au Comité permanent des finances un mémoire prébudgétaire contenant trois recommandations clés, qui ont également été soulignées lors des journées sur la Colline d’automne.

1. Pour garantir un retour sur investissement optimal dans les infrastructures fédérales et les initiatives de construction nationales, le gouvernement fédéral doit s’engager à collaborer avec les acteurs du secteur, en particulier lors des premières étapes de la planification et de la réalisation des projets. L’engagement précoce soutient la gestion stratégique des projets et favorise l’efficacité, la transparence et la valeur à long terme.

2. Le gouvernement fédéral doit s’appuyer sur le succès du projet de loi C-5 et réduire les barrières commerciales interprovinciales afin de promouvoir le libre-échange des biens utilisés dans l’industrie de l’infrastructure et d’accroître la mobilité des travailleurs et travailleuses, en particulier dans les métiers spécialisés. Le projet de loi C-5 doit également promouvoir des investissements supplémentaires dans des projets

d’infrastructure clés dans les domaines de l’énergie, des transports et du commerce.

3. Le gouvernement fédéral doit engager les fonds nécessaires pour s’attaquer à la crise du logement au Canada avec Maisons Canada en s’engageant à mettre en œuvre des mécanismes de contrôle solides pour tous les investissements alloués à l’infrastructure du logement. La crise du logement au Canada a atteint un point critique et exige une action urgente.

L’ICÉC a également contribué à la première évaluation nationale des infrastructures du Canada et a participé à la consultation de Logement, Infrastructures et Collectivités Canada concernant Maisons Canada. Par notre plaidoyer, nous renforçons l’idée que les professionnels de l’ICÉC (ÉCA et ECC) possèdent la formation, l’expérience et les normes éthiques nécessaires pour garantir l’atteinte de résultats significatifs et mesurables par les investissements publics.

Tendances économiques actuelles

Aujourd’hui, l’environnement de réalisation des projets est confronté à la reprise du marché après une pandémie, à l’inflation, à la fluctuation des taux d’intérêt, aux pressions de la chaîne d’approvisionnement, aux restrictions du marché du travail et aux droits de douane. Chaque variable a un impact sur le coût, le risque et le calendrier du projet.

Vous trouverez ci-dessous une analyse de la manière dont les

professionnels de l’ICÉC s’adaptent et jouent un rôle de premier plan dans ces domaines.

Inflation et hausse des coûts : L’inflation persistante a nécessité un recalibrage des bases de données traditionnelles sur les coûts et des pratiques d’étalonnage pour les professionnels de l’ICÉC. Les estimations de coûts préparées même six mois plus tôt peuvent nécessiter une validation actualisée, en particulier pour les projets de longue durée ou échelonnés. Il y a une demande accrue pour des mises à jour fréquentes des coûts pendant les phases précontractuelles, une plus grande utilisation des clauses d’indexation dans les contrats, et une plus grande importance accordée à l’ingénierie de la valeur pour atténuer la hausse des coûts des matériaux et de la main-d’œuvre.

Fluctuation du taux d’intérêt : Le coût de l’emprunt modifie les décisions d’investissement et des projets qui semblaient réalisables à un moment donné peuvent maintenant être suspendus ou reconsidérés.

Les économistes en construction agréés, en particulier dans leurs rôles de conseil, peuvent réaliser des études de faisabilité solides et des analyses de sensibilité pour tenir compte de l’augmentation des coûts de financement et réévaluer les projections de flux de trésorerie en fonction de différents scénarios de taux. Une collaboration plus étroite avec les prêteurs, les promoteurs et les investisseurs, ainsi qu’une plus grande marge de manœuvre dans l’évaluation des coûts du cycle de vie, sont devenues plus importantes que jamais.

Pressions sur la chaîne d’approvisionnement : L’instabilité de la chaîne d’approvisionnement mondiale, exacerbée par les tensions géopolitiques, continue d’affecter la disponibilité et le prix des matériaux de construction. Les professionnels de

l’ICÉC s’adaptent en recommandant des matériaux alternatifs, en évaluant les délais d’approvisionnement et en identifiant des stratégies d’approvisionnement optionnelles pour atténuer les risques. Une implication plus stratégique dans la planification des achats et la structuration des contrats est nécessaire pour améliorer la collaboration avec les entrepreneurs et fournisseurs au cours des premières phases du projet.

Contraintes du marché du travail : Le marché du travail canadien est soumis à de fortes pressions en raison de la disponibilité de la main-d’œuvre, des tendances démographiques et de l’augmentation de la demande. L’augmentation du coût de la main-d’œuvre et les retards potentiels sont devenus des variables importantes dans la planification des projets. Les professionnels de l’ICÉC évaluent les risques liés à la disponibilité de la main-d’œuvre, intègrent les prévisions de coûts basées sur le calendrier et conseillent les parties prenantes du projet sur les compromis possibles entre coûts et temps lors de la sélection des méthodologies de construction ou des options de mise en œuvre progressive. Il faut recourir davantage aux fonds pour éventualités et aux indemnités de risque de la main-d’œuvre, que les membres de l’ICÉC peuvent appliquer en fonction de leur compréhension des marchés du travail régionaux.

Tarifs douaniers : La hausse des tarifs douaniers entre le Canada et les États-Unis s’est traduite par des droits de douane réciproques qui ont une incidence directe sur le secteur de la construction. Les membres de l’ICÉC qui participent à des projets sont chargés de veiller à l’exactitude des estimations de coûts, de contrôler les budgets, de donner des conseils en matière d’approvisionnement, et les tarifs douaniers introduisent de nouveaux

niveaux de complexité, d’incertitude et de risque dans leurs responsabilités.

Il est essentiel d’identifier rapidement l’exposition aux tarifs au cours de la phase de budgétisation et, dans la mesure du possible, il est impératif de s’approvisionner au niveau national afin d’éviter les coûts tarifaires supplémentaires. Il est recommandé de constituer une réserve pour éventualités afin de tenir compte de l’impact de la volatilité des tarifs commerciaux.

Tournés vers l’avenir

L’incertitude économique a réaffirmé le rôle essentiel des membres ÉCA et ECC en tant qu’économistes en construction.

Nous opérons à l’intersection de la construction, de la finance et de la stratégie d’approvisionnement et les tendances économiques influencent directement la manière dont les professionnels de l’ICÉC accomplissent leurs tâches principales.

En tant que conseillers de confiance, nous sommes particulièrement bien placés pour guider nos clients dans l’incertitude, en transformant les défis économiques en décisions de projet éclairées et résilientes.

Par le biais de la sensibilisation, de l’éducation et de la pratique, l’ICÉC continuera à défendre le rôle de contributeurs essentiels à l’avenir des infrastructures et du logement au Canada de ses membres. ■ Tammy Stockley, ÉCA(F), MRICS, CSO, AET Tammy Stockley a débuté sa carrière en économie en construction en 1992 après avoir obtenu son diplôme de technologie des études techniques à St. John’s en Terre-Neuve-et-Labrador.

Au cours de sa carrière professionnelle, elle a occupé les rôles de planificatrice des coûts, consultante en coûts, consultante principale en coûts, associée et directrice associée, avant son poste actuel de directrice.

ciqs.org | WINTER 2025 | Construction Economist 7

MESSAGE FROM THE CEO

A Year of Strategic Growth and Enhanced Value

I

Sheila Lennon, CAE Chief Executive Officer, CIQS

t is my absolute pleasure to share the significant milestones we have achieved this year, and how they have helped to strengthen the Institute and advanced the quantity surveying profession across Canada. These accomplishments reflect our commitment to supporting our members while continuing to position the Institute as the voice for Canada’s construction economists.

Strengthening Our Foundation Through Risk Management

One significant milestone is the completion and implementation of the corporate Risk Management Plan and Risk Register. This organizational tool offers the framework for identifying, assessing, and prioritizing potential risks that could affect the organization’s ability to achieve its objectives. The plan outlines strategies for staff to monitor and mitigate such risks while establishing clear protocols to response and accountability.

A comprehensive risk management plan, when actively monitored, ensures that we are able to proactively identify potential obstacles and implement strategies to address then before they become a problem, rather than solely reacting to challenges as they arise. It ultimately strengthens our governance, enhances decision-making, protects our resources, and ensures the Institute’s ability to serve our members effectively. It also demonstrates our commitment to operating with the same professional 8 Construction Economist | WINTER 2025 | ciqs.org

diligence we expect from our members.

Reimagining Professional Development

Earlier this year we launched a newly revised Continuing Professional Development (CPD) program that reflects your feedback and the realities of modern professional practice by offering flexibility in how CPD points are earned, while maintaining the rigorous standards that make the PQS/CEC designations stand out above the rest.

To acknowledge the demanding nature of the QS profession, the program features structured categories with set minimum and maximum points as well as flexibility in how our PQS and CEC members earn the 30 annual CPD points.

I cannot emphasize enough the importance of recording your CPD activities online throughout the year. Beginning in 2026, this becomes even more critical: renewal invoices for PQS and CEC members will not be generated until the minimum 30 CPD points have been entered into the CPD module. This change ensures that professional development remains an integral part of maintaining your designation, not an afterthought during renewal season.

To support your CPD journey, we introduced webinar bundles for sale, this fall. Each bundle includes recordings of five webinars presented by subject matter experts on diverse industry topics throughout the

year. At just $75 per bundle these resources represent exceptional value that allows you to learn at your own pace, on your own schedule, while earning CPD points per bundle (no points for duplicate webinars).

Articulating Our Members’ Value

We are also in the process of finalizing a comprehensive Value Proposition Brochure, created as a resource for our PQS and CEC members as a reference tool to convey the value of their professional services and experience on construction projects. Being able to effectively communicate your distinctive value proposition in today’s competitive marketplace is essential, and this brochure offers compelling information needed to demonstrate why your expertise matters to project success, from initial planning through final closeout.

Amplifying Our Voice Through Strategic Advocacy

We have seen considerable progress in raising awareness of our profession among key decision-makers through our advocacy and stakeholder relations initiatives, and we are actively engaged with government officials and municipal staff across the country, emphasizing the importance of involving PQS and CEC professionals throughout the entire lifecycle of construction projects, not just at tender or final account stages.

These conversations took place at premier industry events including the

Federation of Canadian Municipalities and the Canadian Association of Municipal Administrators tradeshows, as well as during 1:1 meetings, where we connected with government officials as well as the staff who make procurement and project delivery decisions.

Our participation as an active member of FIRPAC (Federal/ Industry Real Property Advisory Council), including attendance at PSPC risk workshops alongside other construction leaders from across the country, has positioned the CIQS as a trusted voice during national infrastructure discussions.

The presentation by Tammy Stockley, CIQS Chair, at the Construction Specifications Canada Conference in St. John’s, NL, provided another valuable opportunity to expand awareness of the vital role that quantity surveyors — and PQS/CEC professionals in particular — play in delivering successful construction projects.

Charting Our Course Forward

In April 2025, the CIQS Board and staff gathered in Toronto for an intensive strategic planning session that produced our new Strategic Plan for 2025-2028, a roadmap which reflects our ambitious vision for the future, built on four foundational strategies: We will continue to deliver CIQS certification programs to the highest standards, to ensure that our designations remain recognized marks of excellence for members to distinguish themselves as expert professionals in their field.

We will continue to promote the distinctive value of the quantity surveying profession among targeted decision-makers. Our advocacy and external relations mandate increase our standing with those who procure and deliver construction projects, to emphasize the dedication PQS and CEC professionals have to delivering feasibility first, and ROI always.

We will continue to grow and foster a vibrant community of quantity surveyors in Canada.

Our profession thrives when we prioritize knowledge-sharing and support one another to collectively advance the profession.

We aim to build organizational capacity for increased scale and influence. This means investing in our systems, strengthening our team, and developing the organizational resilience needed to serve a larger, more diverse membership while maintaining the quality service our members expect.

I am excited to see the Institute’s continued growth year after year, and I look forward to seeing what our team will accomplish in the year to come! Thank you for your continued commitment to professional excellence and to the Canadian Institute of Quantity Surveyors. ■

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MESSAGE DE LA DIRECTRICE GÉNÉRALE

« Une année de croissance stratégique et de renforcement de la valeur »

J

Sheila Lennon, ÉCA Directrice générale, ICÉC

’ai l’immense plaisir de vous faire part des étapes importantes que nous avons franchies cette année et de la façon dont elles ont contribué à renforcer l’Institut et à faire progresser la profession de l’économie en construction dans l’ensemble du Canada. Ces réalisations reflètent notre engagement à soutenir nos membres tout en continuant à placer l’Institut comme le porte-parole des économistes en construction du Canada.

Des bases renforcées grâce à la gestion des risques

L’achèvement et la mise en œuvre du plan de gestion des risques et du registre des risques de l’Institut constituent une étape importante.

Cet outil organisationnel offre un cadre pour l’identification, l’évaluation et la hiérarchisation des risques potentiels susceptibles d’affecter la capacité de l’organisation à atteindre ses objectifs. Le plan décrit des stratégies permettant au personnel de surveiller et d’atténuer ces risques, tout en établissant des protocoles clairs en matière de réponse et de responsabilité.

Lorsqu’il fait l’objet d’un suivi actif, un plan complet de gestion des risques permet d’être en mesure d’identifier de manière proactive les obstacles potentiels et de mettre en œuvre des stratégies pour y faire face avant qu’ils ne deviennent un problème, plutôt que de nous contenter de réagir aux défis lorsqu’ils se présentent. En fin de compte, ce plan renforce notre gouvernance, améliore la prise de décision, protège nos ressources 10 Construction Economist | WINTER 2025 | ciqs.org

et garantit la capacité de l’Institut à servir efficacement ses membres.

Il démontre également notre engagement à agir avec la même diligence professionnelle que celle que nous attendons de nos membres.

Un développement professionnel réimaginé

Au début de cette année, nous avons lancé un nouveau programme de développement professionnel continu (DPC) qui tient compte de vos commentaires et des réalités de la pratique professionnelle moderne en offrant une certaine flexibilité au niveau de la méthode d’acquisition des points de DPC, tout en maintenant les normes rigoureuses grâce auxquelles les titres d’ÉCA/ECC se distinguent des autres.

Afin de reconnaître la nature exigeante de la profession de l’économie de la construction, le programme comprend des catégories structurées avec un nombre minimum et maximum de points, ainsi qu’une certaine flexibilité dans la manière dont nos membres ÉCA et ECC peuvent obtenir les 30 points de DPC annuels.

Je ne saurais trop insister sur l’importance d’enregistrer vos activités de DPC en ligne tout au long de l’année. À partir de 2026, cela devient encore plus essentiel, car les factures de renouvellement pour les membres ÉCA et ECC ne seront pas générées tant que le minimum de 30 points de DPC n’aura pas été saisi dans le module de DPC. Ce changement permet de s’assurer que le développement professionnel reste une partie intégrante du maintien de votre titre, et non une réflexion

après coup pendant la période de renouvellement.

Pour soutenir votre parcours de DPC, nous avons mis en vente cet automne des lots de webinaires. Chaque lot comprend l’enregistrement de cinq webinaires présentés par des experts en la matière sur divers sujets de l’industrie tout au long de l’année. À seulement 75 $ par lot, ces ressources représentent une valeur exceptionnelle qui vous permet d’apprendre à votre rythme, selon votre emploi du temps, tout en obtenant 5 points de DPC par lot.

Articulation de la valeur de nos membres

Nous sommes également en train de terminer l’élaboration d’une brochure complète sur la proposition de valeur, créée pour servir de ressource pour nos membres ÉCA et ECC. Cet outil de référence leur permettra de transmettre la valeur de leurs services professionnels et de leur expérience sur les projets de construction. Il est essentiel de pouvoir communiquer efficacement votre proposition de valeur spécifique sur le marché concurrentiel d’aujourd’hui, et cette brochure offre des informations convaincantes nécessaires permettant de démontrer pourquoi votre expertise est importante pour la réussite du projet, de la planification initiale à la clôture finale.

Amplification de notre voix grâce à un plaidoyer stratégique Nous avons réalisé des progrès considérables dans la sensibilisation des décideurs clés à notre profession grâce à nos initiatives de plaidoyer et à nos relations avec les parties prenantes, et nous nous engageons activement auprès des responsables

gouvernementaux et du personnel municipal dans l’ensemble du pays, en soulignant l’importance de faire participer les professionnels ÉCA et ECC tout au long du cycle de vie des projets de construction, et pas seulement aux stades de l’appel d’offres ou du décompte final.

Ces conversations ont eu lieu lors d’événements majeurs du secteur, notamment les salons professionnels de la Fédération canadienne des municipalités et de l’Association canadienne des administrateurs municipaux, ainsi que lors de réunions individuelles, au cours desquelles nous nous sommes entretenus avec des représentants du gouvernement ainsi qu’avec le personnel qui prend les décisions en matière de passation de marchés et de réalisation de projets.

Notre participation en tant que membre actif du FIRPAC (Conseil consultatif sur les biens immobiliers du gouvernement fédéral et de l’industrie), y compris la participation aux ateliers sur les risques de SPAC aux côtés d’autres dirigeants du secteur de la construction de l’ensemble du pays, a permis de cimenter la position de l’ICÉC en tant que voix de confiance lors des discussions sur les infrastructures nationales. La présentation de Tammy Stockley, présidente de l’ICÉC, lors de la conférence de Construction Specifications Canada

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à St. John’s, Terre-Neuve-et-Labrador, a fourni une autre occasion précieuse d’accroître la sensibilisation au rôle essentiel que les économistes en construction (et les professionnels ÉCA/ECC en particulier) jouent au niveau de la réalisation de projets de construction réussis.

Tracer la voie de l’avenir

En avril 2025, le conseil d’administration et le personnel de l’ICÉC se sont réunis à Toronto pour une séance intensive de planification stratégique qui a abouti à notre nouveau plan stratégique pour 2025-2028, une feuille de route qui reflète notre vision ambitieuse de l’avenir et qui repose sur quatre stratégies fondamentales : 1. Nous continuerons à proposer des programmes de certification de l’ICÉC répondant aux normes les plus élevées, afin de permettre à nos titres de rester des marques d’excellence reconnues permettant aux membres de se distinguer en tant que professionnels experts dans leur domaine.

2. Nous continuerons à promouvoir la valeur spécifique de la profession d’économiste en construction auprès de décideurs ciblés. Notre mandat en matière de plaidoyer et de relations extérieures nous permet de renforcer notre position auprès des acheteurs et des prestataires de projets de

construction, afin de souligner l’engagement des professionnels ÉCA et ECC à assurer d’abord la faisabilité et toujours le retour sur investissement.

3. Nous continuerons à nous développer et à favoriser une communauté dynamique des économistes en construction au Canada. Notre profession prospère lorsque nous donnons la priorité au partage des connaissances et que nous nous soutenons les uns les autres pour faire progresser collectivement la profession.

4. Nous visons à renforcer les capacités organisationnelles afin d’accroître notre portée et notre influence. Pour cela, nous devons investir dans nos systèmes, renforcer notre équipe et développer la résilience organisationnelle nécessaire pour soutenir des membres plus nombreux et plus diversifiés tout en maintenant la qualité de service que nos membres attendent.

Je me réjouis de constater la croissance continue de l’Institut année après année, et j’ai hâte de voir ce que notre équipe va accomplir au cours de l’année à venir ! Merci de votre engagement continu envers l’excellence professionnelle et l’Institut canadien des économistes en construction. ■

ciqs.org | WINTER 2025 | Construction Economist 11 5/20/2025 8:45:13 PM

Education

THE QS RENAISSANCE: REDEFINING THE ROLE FOR A SMARTER, GREENER, FUTURE

By Janaka Ruwanpura, PQS, Ph.D., P.Eng., FCAE, MRICS

A

s we stand at the crossroads of digital disruption, climate imperatives, and shifting client expectations, the quantity surveying profession is experiencing a quiet yet significant transformation. This is not merely an update of tools or a change in scope; it is a renaissance of the quantity surveyor’s identity.

Today’s QS professionals are no longer confined to measurement and budget control. They are emerging as strategic advisors, digital innovators, and sustainability champions, critical to delivering smarter, greener, and more resilient built environments.

This article explores the driving forces reshaping the role of the quantity surveyor and outlines how the profession can seize the moment to lead.

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From Cost Controllers to Strategic Value Managers

Traditionally, quantity surveyors managed cost certainty by preparing bills of quantities, performing take-offs, and tracking budgets. These core skills remain indispensable. But today, clients expect more: strategic insights, commercial intelligence, and life-cycle thinking.

12 Construction Economist | WINTER 2025 | ciqs.org

The QS of the future must be equipped to: • Shape procurement and contracting strategies • Lead value engineering across project options • Evaluate long-term asset performance and life-cycle costs • Model trade-offs between cost, quality, time, and sustainability It’s not just about estimating accurately; it’s about guiding better decisions early and often.

and data analytics for benchmarking, and the picture is clear — digital fluency will shape the next generation of QS professionals.

Sustainability: Costing the Path to Net-Zero

The global push for decarbonization and sustainable infrastructure places quantity surveyors in a critical role. We serve as the link between design goals and financial viability. Future-ready QS professionals must be able to: • Price embodied and operational carbon The Digital Shift: 5D and Beyond • Conduct Lifecycle Costing (LCC) and Digital technologies are transforming Lifecycle Assessment (LCA) the way projects are designed, • Support net-zero design decisions with delivered, and operated, and the accurate cost-benefit data QS profession must lead, not lag, in • Integrate sustainability KPIs into cost this transition. reporting frameworks The shift to 5D BIM (linking cost to the In this context, costing is no longer building model), along with cloud-based just about money; it’s about carbon, tools available in the market, has resilience, and long-term value. opened new ways to: • Automate quantity take-offs The Global Opportunity • Simulate cost and schedule scenarios As construction markets become • Visualize project risk and value more globalized, the QS profession in real time must evolve. Cross-border projects, • Collaborate across dispersed teams international contracts, and the use of with shared digital environments common standards like ICMS and FIDIC Add to this the rise of AI-powered mean that today’s QS needs to: estimating tools, Monte Carlo simulation • Understand diverse legal and for risk-based costing and scheduling, regulatory frameworks

• Be comfortable working with global delivery teams • Adapt to cultural, currency, and regional cost differences Canadian professionals can have the opportunity to contribute to and learn from global best practices, and to elevate Canada’s presence in international construction markets.

The real question is whether we, as practitioners, educators, and institutions, are prepared to lead that evolution. It’s time to reimagine what it means to be a Professional Quantity Surveyor and to embrace the smarter, greener future ahead. ■ Janaka Ruwanpura is a Professor of Project Management at the Schulich School of Engineering, University of Calgary, where he

From Data to Intelligence

As the built environment becomes increasingly data-rich, the QS must transform into a data translator, someone who clarifies complexity. The skill to analyze data and share insights will define tomorrow’s leaders.

This means applying tools like: • Power BI dashboards for cost trends and KPIs • Risk-based forecasting for contingency planning • Predictive models to assess project alternatives • Cost databases and benchmarking for design validation By transforming data into decision support, QS professionals can move from being reporters of what happened to advisors on what should happen.

Soft Skills, Strong Impact

Even as technology reshapes the technical toolkit, human skills will remain paramount. Future quantity surveyors must: • Communicate clearly with stakeholders • Navigate complex negotiations • Uphold professional ethics in cost reporting and claims • Lead multidisciplinary teams through uncertainty As the profession’s scope expands, so must its capacity to build trust, influence decisions, and represent the client’s best interests comprehensively.

has served as Vice-Provost and Associate Vice-President Research (International) for 11 years and Canada Research Chair in Project Management Systems for 6 years. He is a Fellow of the Canadian Academy of Engineering and the US Academy of Construction. His expertise includes risk management, simulation analysis, productivity improvement and global engagement.

Relevant Experience in project monitoring relative to the position

+

Strong communications skills

+ Be working towards (or have interest in) RICS and CIQS memberships

+

Time management skills

+ +

Working understanding of procurement methods

Conclusion: Seizing the Moment

We are entering a new era for the quantity surveying profession. The demand for cost certainty, commercial insight, and sustainable delivery has never been higher. The tools are advancing. Expectations are increasing — and opportunities are global.

This is the QS renaissance.

The question isn’t whether the profession will evolve; it already has.

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ciqs.org | WINTER 2025 | Construction Economist 13

09-12-2025 21:41:23

Congress 2026 Join Us in Charlottetown, PEI June 4-6, 2026 CIQS Congress is the Institute’s flagship event which brings together over 165 industry leaders annually from across Canada and abroad for knowledge-sharing and network building. This year’s theme is Smart Growth Through Diversification: A New Fiscal Blueprint for Canadian Construction.

We will be posting updates on our Congress website as they become available. Visit www.ciqs.org/congress often for up-todate information on Congress 2026 presentations, speakers, and networking events.

Congratulations to our 2026 David Lai YQS Bursary Recipients!

CIQS has secured a $309/night room rate at the Delta Prince Edward. Use the QR Code below to secure your hotel!

1. Michel-Ange Aspilaire, CEC 2. Ronald Austin-Bearns 3. Reyhane Jeddi, CEC 4. Ilana Modulevsky, PQS 5. Nick Dvernechuk, PQS 6. Emily Payne, CEC 7. Brayden Sanclemente, PQS 8. Ajibola Akinola Odujole, CEC

Early Pricing in Effect until March 3, 2026

Why Attend?

Professional Development The Educational Program runs over the course of two days, featuring presenters and panelists who over the years have shared their insight on a variety of topics.

DID YOU KNOW?

Attendees who attend the full Congress receive half of their required CPD points for the year!

CIQS Member Early Bird

Non-Member Early Bird

$725

$875

Available from December 8, 2025 to March 3, 2026.

Includes:

Available from September 8, 2025 to March 3, 2026.

Includes:

Both session days

Both session days

Welcome Reception

Welcome Reception

CIQS Member Early Bird Combo

Non-Member Early Bird Combo

$850

$1000

Available from December 8, 2025 to March 3, 2026.

Includes: Both session days Welcome Reception Chair’s Dinner & Awards/Local Flavour

Available from September 8, 2025 to March 3, 2026.

Includes:

Both session days Welcome Reception Chair’s Dinner & Awards/Local Flavour

YQS

MOUNTAINS OF PAPERWORK: UNDERSTANDING THE IMPORTANCE OF CONSTRUCTION DOCUMENTS

By Brandon Roy, BA, CEC, GSC

1. Construction Contracts

Construction contracts come in all shapes and sizes depending on the type of project, whether you are a consultant, general contractor, or subcontractor. The standard construction contracts in Canada are the CCDC contracts. These contracts provide a standardized framework for construction contracts. They provide a starting point from which owners and contractors build their relationships on a solid footing. Contracts can be adjusted by means of Supplemental Conditions, and this is where things can get interesting. Take the time and

learn the types of contracts that you are going to come across frequently and know them inside out and you will have success.

2. Supplemental Conditions — Construction Contracts continued…

Mastering contracts and supplemental documents is key to your success. Being clear about inclusions and responsibilities is key to project success. It can also affect relationships between owner and contractor, or contractor and subcontractor. Ensuring everyone understands and agrees to the documents will help advance the project positively.

3. Project Specifications

These documents are the true guts of a construction project. Project Specifications play multiple roles: they help explain exactly what products are to be used, how they should be installed, and what quality assurances are required. These documents are where inexperienced QSs can get into trouble. They are typically very extensive, comprise several hundred to thousands of pages, and it’s the QSs job to read and understand their contents. Thankfully, most project specifications follow a similar format, CSI Master Format, which allows you to speed up the reading process as each section will follow the same layout.

Specifications can also hold special information on projects that is not necessarily conveyed in the drawings.

Not accounting for information within the project specifications, simply because they weren’t read, is a sure-fire way of putting the project at financial risk.

Now I am sure many of you are thinking, “Brandon this is so basic…

We all know this.” However, I have

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I

remember one of the biggest surprises to me when I entered the construction sector was the sheer volume of paperwork that is involved. I knew about blueprints and contracts; however, I didn’t appreciate how detailed and extensive these documents can be, or how important the small details in these documents can be.

Napolean Bonaparte is quoted as once saying that “an army marches on its stomach.” This quote refers to the success of an army being reliant on the things that happen behind the scenes, the logistics, and supply chain. You could say a construction project moves on its paperwork, and I would argue that your success as a Quantity Surveyor is reliant on your ability to master the behind-the-scenes skills. You may not be swinging a hammer or pouring concrete to build a building, but knowing every document regarding the project — from contracts to specifications to supplemental conditions — can be just as impactful on the success of the project.

Here are some of the main documents a QS handles every day:

seen firsthand — in managing junior estimators fresh out of school and looking to prove themselves — skipping several of these key steps, not understanding a contract under which a project is being priced, skimming over specifications, missing key details, etc. It is always great for a reminder of the simple things that we tend to overlook in our busy day-to-day lives. I know I am guilty of this myself.

The key takeaway here is that there are no shortcuts to the documents process; you must read, understand, and execute the contract documents in full. Take some time to review and refresh yourself on these key documents as they are constantly being updated. ■ Brandon Roy is a Senior Estimator with a general contractor in Ontario. He has a diverse portfolio spanning all sectors of construction in commercial, design-build industrial, institutional, long-term care, and multi-family residential. Brandon holds a Bachelor of Arts, History degree with a minor in Classical Military Tactics from Wilfrid Laurier University and a Construction Estimator Certificate from Conestoga College. ciqs.org | WINTER 2025 | Construction Economist 15

Decarbonization

QUANTITY SURVEYORS AS STRATEGIC DECARBONIZATION ADVISORS

By Ayo Daniel Abiola, P.Eng, PQS

A

strategic decarbonization advisor is a crucial expert in the building and construction industry who guides owners in reducing their project’s carbon footprint throughout the entire lifecycle. This advisor develops comprehensive, actionable strategies to minimize greenhouse gas (GHG) emissions, from the sourcing of materials and construction processes to the building’s operational energy use and eventual demolition or reuse.

Emissions from the built environment generally comprise operational emissions (energy used during the building’s life) and embodied emissions (GHGs associated with materials, construction, and end-of-life). As energy efficiency increases and grids decarbonize, embodied carbon is projected to become the dominant source — exceeding 50% of a new building’s total lifetime emissions in developed economies [1].

This reality makes the need for whole life building strategic decarbonization advisors increasingly critical for meeting global climate goals.

Quantity surveyors’ core competencies, especially in cost management, measurement, and lifecycle assessment, provide a strong foundation for contributing to these efforts. This must be paired with strategic thinking, strong communication, and the ability to navigate the complexities of sustainable building practices and evolving environmental regulations.

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Trends Shaping Decarbonization in the Industry

The building construction industry presently accounts for 37-42% of global energy-related CO2 emissions, with embodied carbon making up a growing portion [1].

Global construction activities have risen significantly, driven largely by urbanization and population growth. In Canada, for instance, the construction sector has often outpaced the national economy, with major housing and infrastructure projects driven by government priorities that will undoubtedly exacerbate the rise in embodied carbon emissions.

This foreshadows the urgent need for industry shifts, including: • Decarbonization Strategies: Adoption of low-carbon materials like mass timber, green steel,

recycled aggregates, and natural insulation.

• Lifecycle Thinking: Emphasis on whole-life performance and operational efficiency of constructed assets, not just upfront cost.

• Increasing Digitalization: Use of BIM, digital twins, and carbon simulators for early design optimization and accurate measurement.

• Regulatory Compliance: Navigating mandatory standards and voluntary green building frameworks (e.g., LEED, BREEAM, Zero Carbon Standards, and Green Procurement standards).

These trends require quantity surveyors to extend their competencies and services from traditional cost control to comprehensive sustainability advisory.

Knowledge and Tools to Enhance QS Competencies

To effectively provide decarbonization advisory, quantity surveyors need to bridge critical knowledge gaps. This requisite knowledge can be acquired by leveraging their construction experiences, existing skills, and foundational training, focusing on four core areas: Educational Curriculum As sustainability evolves, a skills gap between academia and industry practice is evident across professions.

QS programs in academic institutions must incorporate and update mandatory modules on sustainable construction, whole-life costing, and carbon quantification to meet growing demands of the sector.

Professional Development Programs Many QS practitioners lack detailed knowledge of low-carbon materials, green technologies, and evolving environmental regulations.

Continuous Professional Development (CPD) is essential to stay current with the latest innovations.

QSs should become familiar with evolving industry standards, particularly those from bodies like the CIQS and the RICS, as well as national building codes.

Cross-disciplinary Collaborations To shift the industry’s view of the QS from purely a cost consultant, the professional must embrace a proactive mindset to balance both environmental and financial performance. QS professionals can gain crucial sustainability knowledge by leveraging their unique position as intermediaries between stakeholders — architects, engineers, and contractors. Such collaborations provide vital insights on how to communicate and drive a project’s environmental objectives.

Digital Transformations QS firms need to invest in the software and data libraries required to perform accurate whole-life carbon and cost assessments. The

capabilities in Building Information Modelling (BIM) can be leveraged for cost and carbon measurements using tools that pull data from verifiable Environmental Product Declarations (EPDs). There is a need for more comprehensive, standardized cost data on green building services and products.

QS Sustainability Offerings for the Industry

The QS practitioner with the right mix of skills and experience is perfectly positioned to provide high-value, sustainability-focused services: 1. Carbon Budgeting: From the outset, the QS can work with clients to establish a carbon budget alongside the financial budget. They can incorporate and integrate carbon metrics into standard cost plans, using the framework provided by International Cost Management Standards (ICMS3) [2].

2. Influence Procurement: Proactively advise clients on sustainable material options early in the project. As the design evolves, the QS can provide detailed cost-benefit analyses that consider both financial and environmental credentials.

3. Offer Carbon Audits: Develop the capability to perform carbon audits for both new builds and retrofits, leveraging digital tools for precise whole-life carbon measurements.

4. Build a Data Library: Create an in-house database of sustainable materials, products, and technologies, including their associated costs and carbon impacts. This project data can then be used to inform future design, helping clients adopt and scale low-carbon solutions.

5. Advice on Policy: As regulations become more stringent, leverage expertise to help clients navigate compliance and policy incentives. This positions the QS as an indispensable advisor on climate-related decisions, demonstrating how sustainable investments create long-term value.

Conclusions

The transition to a sustainable and decarbonized built environment requires a paradigm shift from traditional cost accounting to holistic value management. Quantity surveyors, armed with their core competencies in cost and quantity management, are perfectly placed to lead this evolution. By embracing a new mindset, investing in education, and adopting digital tools, QSs can effectively integrate sustainability into every project stage, ensuring environmentally responsible decisions are financially sound. This transformation is not just a trend but a necessity, securing the profession’s relevance and impact for a sustainable future. ■

References:

1. United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).

Global Status Report for Buildings and Construction (Latest Edition).

2. International Cost Management Standards (ICMS) Coalition. ICMS: Global Cost Management in the Built Environment (3rd Edition).

Ayo Daniel Abiola, P.Eng, PQS is the manager of Hanscomb’s Saskatchewan office and is a seasoned Mechanical Quantity Surveyor.

Combining his expertise as both a Professional Engineer and a Quantity Surveyor, Ayo effectively balances cost, sustainability, and performance in new construction and renovation projects across Canada. Ayo is an ASHRAE Certified Decarbonization Professional (CDP) and a recognized expert in sustainable infrastructure. He has trained over 350 public and private sector professionals in system analysis methods for sustainability planning.

He is licensed to practice engineering in Ontario and Saskatchewan and is deeply committed to environmentally responsible and cost-effective building solutions. Ayo lives in Regina, Saskatchewan. ciqs.org | WINTER 2025 | Construction Economist 17

Project Profile

DATA CENTRES: AN OVERVIEW

By Sharib Maradukhel, MRICS, PQS, CET

A

data centre is a specialized facility designed to house a vast array of computer servers and networking equipment. These facilities are critical for storing, processing, and distributing data, serving as the foundation of IT infrastructure for businesses, cloud computing, and internet services.

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Key Components of a Data Centre

1. Servers: Physical machines responsible for processing and storing data.

2. Networking Equipment: Includes switches, routers, and firewalls to manage data traffic.

3. Storage Systems: Utilizes hard drives, solid state drives (SSD), or cloud-based solutions for data retention.

4. Power Supply: Features redundant power sources, backup generators, and uninterruptible power supply (UPS) systems.

5. Cooling Systems: Employs air conditioning and liquid cooling to prevent overheating.

6. Security: Combines physical security (e.g., guards, biometrics) with cybersecurity measures (e.g., firewalls, encryption).

Types of Data Centres

1. Enterprise Data Centres: Privately owned and operated by businesses for internal use.

2. Colocation Data Centres: Third-party facilities where companies rent space for their servers.

3. Cloud Data Centres: Operated by cloud service providers like AWS, Google Cloud, or Microsoft Azure.

4. Edge Data Centres: Smaller facilities located near end-users to minimize latency.

Enterprise Data Centres

An enterprise data centre is a privately owned facility used by

organizations to host their IT infrastructure, applications, and data. These centres are tailored to support internal operations, ensuring high performance, security, and availability.

Key Features of Enterprise Data Centres

1. Private Ownership & Control: m Managed and maintained by the owning organization. m Full control over security, compliance, and infrastructure.

2. On-Premises or Off-Premises: m Can be located on-site within the company’s premises or off-site in a dedicated facility.

3. High Security & Compliance: m Strict access controls (e.g., biometrics, security personnel). m Compliance with industry standards like ISO 27001, HIPAA, and PCI-DSS. 4. Customization & Scalability: m Designed to meet specific business needs. m Scalable to accommodate growing demands.

5. Redundant Infrastructure: m Backup power systems (generators, UPS) to prevent downtime. m Advanced cooling systems to maintain optimal temperatures. m Disaster recovery plans to ensure business continuity.

Cost Analysis of Enterprise Data Centres

The cost of building and maintaining an enterprise data centre depends on factors such as size, location, infrastructure, redundancy, and compliance requirements. Below is a detailed breakdown of cost components. (Expenses are in Canadian dollars.)

18 Construction Economist | WINTER 2025 | ciqs.org

1. Initial Setup Costs (CAPEX — Capital Expenditure)

These are one-time expenses incurred during the construction or upgrade of a data centre.

• A. Land & Building: m Cost: 5M–20M+ (varies by location and size). m Includes land acquisition, construction, and architectural design.

• B. IT Infrastructure: m Servers: 10K–50K per server m Storage Systems: 10K–500K+ m Networking Equipment: 50K–500K • C. Power, Cooling & Other Infrastructure: m UPS & Generators: 5M– 20M+ m MV Equipment: 600K–2M+ m Cooling Systems: 5M–25M+ m Power Distribution: 50K–600K • D. Security Systems: m Physical Security: 50K–1M m Cybersecurity: 100K–2M • E. Compliance & Certifications: m Compliance with Standards like ISO 27001, HIPAA, and PCI-DSS: 50K–500K • F. Installation & Professional Services: m Consultants, Engineers, and Technicians: 500K–10M+ Total Setup Cost (mid-sized data Centre 5 to 20MW): $80M–$350M. (For hyperscale data Centres, costs can exceed $1 billion.)

2. Ongoing Operational Costs (OPEX — Operational Expenditure)

These are recurring expenses required to maintain and operate the data centre.

• A. Power Consumption: m Electricity: 500K–10M+ annually. m Power Usage Effectiveness (PUE) impacts costs (PUE of 1.5+ is less efficient).

• B. Cooling & Environmental Control: m HVAC, liquid cooling, and air circulation: 200K–5M annually.

• C. Staffing & Maintenance: m IT staff, security, engineers, and support teams: 1M–10M annually.

• D. Software & Licensing: m Data Centre management software, firewalls, AI monitoring, and virtualization tools: 200K–2M annually.

• E. Network & Bandwidth Costs: m Internet and WAN connections: 100K–5M annually.

• F. Hardware Upgrades & Replacements: m Servers and storage refreshed every 3-5 years: 1M–10M per cycle.

Total Annual Operational Cost: $3M–$50M.

3. Cost Comparison: Enterprise Data Centre vs. Cloud Cost Factor

Enterprise Data Centre

Cloud Data Centre (AWS, Azurez̄ , GCP)

Initial Investment

80M–350M+

Low (Pay-as-you-go)

Operational Costs

3M–50M+ annually

Variable (based on usage)

Scalability

Limited, costly upgrades

Easy scaling, flexible pricing

Maintenance & Security

Fully managed by the business

Handled by the cloud provider

Long-Term Savings

Cost-effective for large workloads

Cheaper for small or variable workloads

Enterprise Data Centres are cost-effective for large, stable workloads.

Cloud Data Centres are better suited for flexible, short-term, or variable workloads.

Cost Optimization Strategies for Enterprise Data Centres

1. Improve Power Efficiency (PUE <1.5): Optimize cooling systems and use energy-efficient hardware.

2. Adopt a Hybrid Approach: Offload non-critical workloads to the cloud to reduce costs.

3. Leverage Automation & AI: Use AI-driven monitoring to minimize manual labor costs.

4. Colocation Strategy: Rent space in a colocation facility instead of fully owning a data Centre.

5. Virtualization & Consolidation: Reduce hardware costs by utilizing virtual machines and containers.

This report provides a comprehensive overview of data centres, with a focus on enterprise

data centres, their features, costs, and optimization strategies. ■ With over 18 years of experience and a solid background in Electrical Engineering (BEng, MSc), Sharib Maradukhel is an Associate Director at Altus, specializing in cost planning and management for various sectors, including institutional, data centres, and large transit projects. Certified (MRICS, PQS, GSC, CET), Sharib has a proven track record in cost control, project delivery, and change management throughout the project lifecycle, focusing on value-driven solutions and project success from concept to completion. ciqs.org | WINTER 2025 | Construction Economist 19

Government Relations

BUILD CANADA HOMES AND THE MAJOR PROJECTS OFFICE COULD PRESENT MAJOR OPPORTUNITIES

By James Ball

T

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wo of Prime Minister Mark Carney’s most significant announcements during his time in government have been the creation of Canada’s Major Projects Office (MPO) and Build Canada Homes (BCH). Both agencies were formed with the promise to get

20 Construction Economist | WINTER 2025 | ciqs.org

Canada building and building fast. But efficient construction doesn’t happen just by green-lighting projects as fast as possible or by promising endless amounts of capital without planning and oversight.

The Liberal Government’s proposed new federal agencies originated in

their election platform. The MPO was promised to establish a new government office with the mandate to “get big projects built quickly” by requiring the office to render a final approval for projects in a maximum timeline of two years and formalize a one-project, one-review system

between provinces and the federal government. A few days after announcing the MPO, the Prime Minister officially announced the creation of BCH. As an agency, BCH would prioritize the construction of affordable housing at scale across the country. Through public-private partnerships and modern methods for housing construction, BCH would catalyze a new Canadian housing industry. These two new agencies made clear the Carney government’s priorities were focused on infrastructure and that the government was looking for opportunities to build and innovate.

During the early days of the MPO, the Prime Minister and his cabinet heard proposals from Premiers and industries across Canada on the value of their pet projects, hoping for rapid approval that could transform their economies. In addition to announcing the creation of Canada’s new office, the Prime Minister announced the MPO would be headquartered in Calgary instead of Ottawa and be led by former President, CEO and Board Chair of Trans Mountain Corporation Dawn Farrell. Both announcements signaled that this new government and the MPO could prove to be more business friendly and more open to working with western provinces on projects that supported western Canada’s energy economies.

During the announcement of BCH, the Prime Minister outlined the three key pillars of the new agency that will promote housing construction across the country. First, the agency will partner with industry, other levels of government, and Indigenous communities to build affordable housing at scale and at speed. To start getting projects built, the federal government will provide a $13 billion capital investment, enabling financing, providing land, and helping builders get projects off the ground. Second, BCH will deploy capital, create demand, and harness innovative housing technologies to build faster and more sustainably year-round. The agency plans to put an intense focus on cost-effective and modern methods

of construction like factory-built, modular, and mass timber. Finally, BCH will adopt the government’s Buy Canadian policy and prioritize projects that use Canadian lumber and other construction materials. This policy would channel demand through Canadian industries, strengthening Canadian supply chains, scaling up the domestic housing industry, and creating quality jobs across Canada.

To lead the BCH office, the Prime Minister tapped Ana Bailão as CEO. Ms. Bailão was chosen for her experience as a Toronto City Councillor and as Chair of the Planning and Housing Committee on the board of Toronto Community Housing. Having worked directly on housing in one of Canada’s most expensive cities, Ms. Bailão was seen as a leader for the agency who understood the urgency of the moment and the need for innovative and fast solutions to a long-standing challenge impacting the entire country.

As Parliamentarians prepared to return to the House of Commons at the end of the summer, the Prime Minister unveiled the first five projects that would receive rapid approval by the MPO. The first two projects prioritized Canadian energy investment by developing LNG Canada Phase 2 in Kitimat, British Columbia, doubling its production capacity of LNG and making it the second largest facility in the world. The next project, the Darlington New Nuclear Project in Bowmanville, Ontario, would make Canada the first G7 country to have an operational small modular reactor. Both projects promise to increase Canada’s energy capacity and improve Canada’s global energy competitiveness. The other three projects announced include the Contrecoeur Terminal Container Project in Contrecoeur, Quebec to expand the Port of Montreal’s container capacity, McIlvenna Bay Foran Copper Mine Project in East-Central, Saskatchewan, and the Red Chris Mine expansion in Northwest, British Columbia.

While simplified approval processes and rapid construction provide

immense opportunities, effective oversight of all aspects of these new projects will be required to ensure that projects actually have a path to reach completion. Without systems to actively and reliably monitor progress, projects could face delays and challenges at effectively using the capital provided to them by both the private sector and through Canadian tax dollars. Especially, as the federal government looks to make targeted investments and reduce overall spending, maximizing the use of public sector dollars will be critical in achieving Prime Minister Carney’s overall aims: reduce government costs, while increasing efficiency of investments. Both the MPO and BCH have committed to working with industry stakeholders. Engaging with industry professionals including CIQS members will promote efficiency in project planning, procurement, construction and completion. This message was shared with officials and Parliamentarians during the CIQS’s Parliament Hill Advocacy Day and will continue to be shared with key officials across federal agencies as a core tenant of the CIQS’s advocacy work to ensure that new projects are as successful as possible.

Both the MPO and BCH are in their early stages and getting up to speed, but the potential for rapid approval and construction of projects across critical industries could see projects built across the country at a breakneck pace. However, it will be up to CEOs Dawn Farrell and Ana Bailão to ensure industry stakeholders are effectively incorporated into the agencies processes and that the goals of their respective offices are achieved with projects not only starting, but finishing. ■ James Ball is a Research Specialist with Impact Public Affairs in Ottawa, Ontario. He works with a variety of clients, including the Canadian Institute of Quantity Surveyors, to engage the government on Canadian construction issues. ciqs.org | WINTER 2025 | Construction Economist 21

Government Relations

CIQS ADVOCACY: TRIPS TO OTTAWA AND EDMONTON

By James Ball

W

ith the return of Parliament this fall, CIQS returned once again to Ottawa to advocate for the needs of members, the construction industry, and Canadians.

Following an unusual first half of the year for Members of Parliament with a Prime Minister resigning, a rookie politician being chosen by his party to be the next Prime Minister, an unprecedented electoral comeback and a lighting fast spring session of the House of Commons, the fall session marked the first extended sitting of Parliament in Ottawa.

In October, and with some stability to Canada’s political situation, CIQS leadership and members travelled to Ottawa for two days of high-profile meetings with MPs, senators, and key government officials working to promote the value of members, the needs of the construction industry, and the work that needs to be done for Canadians. Meetings included senior staff from Public Services and Procurement Canada, Innovation Science and Economic Development, and Housing, Infrastructure and Communities Canada. CIQS also met with key Ministerial offices, sitting down with the Minister of Natural Resources team, the Minister of Housing and Infrastructures policy team, and the Secretary State for Labour’s advisory team. The delegates representing CIQS also met with MPs from across the political spectrum including MP Scott Aitchison (Shadow Minister for Housing), MP Tom Osborne (Parliamentary Secretary to the President of the Treasury Board) 22 Construction Economist | WINTER 2025 | ciqs.org

and MP Gabriel Ste-Marie (Bloc Quebecois Spokesperson for Housing).

During these meetings the delegates representing CIQS shared the tremendous value that Professional Quantity Surveyors (PQS) and Construction Estimator Certified (CEC) professionals bring to various projects across the country, including by addressing price fluctuations, an

increasingly important issue given the ongoing trade and tariff dispute between Canada and the United States impacting the sectors that the construction industry relies on. As the Carney government talks frequently about the need for investment in housing and major nation-building infrastructure projects, PQS and CEC professionals across Canada, came

L-R: Tara Sawyer, MLA for Olds-Didsbury-Three Hills, Kevin Magill, PQS, Ibrahim Oladapo, PQS, Ron Wiebe, MLA for Grand Prairie-Wapiti and Parliamentary Secretary for Rural Health (North), Tany Yao, MLA for Fort McMurray-Wood Buffalo and Deputy Government Whip and Parliamentary Secretary for Small Business and Northern Development, Wyatt Clairmont, PQS, and Garth Roswell, MLA for Vermillion-Lloydminster-Wainwright.

L-R: Kelly Parker, PQS(F), Jonathan Barr, Senior Director, Innovation, Science and Economic Development Canada, Erin Brownlow, PQS(F), and Indu Elapatha, PQS(F)

to Ottawa to remind the government and key decision-makers that spending money is not the magic fix to these issues. Instead, targeted and thoughtful investment done through collaboration with industry stakeholders that have the critical knowledge to maximize Canada’s spending on many long overdue projects will make sure that shovels actually get in the ground quickly and that projects deliver the results that Canadians need.

After a busy two days of meetings in Ottawa, CIQS’ leadership travelled to Edmonton to continue the conversation about the value added by collaborating with PQS and CEC members with provincial decision makers in Alberta’s capital. Coming right after Premier Danielle Smith’s speech from the throne to open the new session of the provincial parliament with promises to build Alberta’s economy through infrastructure, CIQS members took

part in a full day of meetings with key members of Alberta’s legislature.

While in Edmonton, CIQS’ delegation took part in two major roundtables with members of the NDP and UCP caucuses, met with the senior teams for the Minister of Transportation and Economic Corridors and the Minister of Municipal Affairs, and sat down with the Minister of Infrastructure for the province the Hon. Martin Long and the Minister of Energy and Natural Minerals the Hon. Brian Jean.

Once again CIQS members took the time to promote the needs of Alberta’s infrastructure industry to the provincial government’s key decision makers making clear that collaboration with PQS and CEC professionals provide a net positive for the provincial government and Albertans. Through prudent project management that supports the construction of new affordable housing and strategically targeting infrastructure projects that

are feasible, will employ workers across the province and unlock Alberta’s economic potential while maximizing valuable public dollars, PQS and CEC professionals can help build Alberta’s economy to be even stronger than it already is.

Coming off the success of these advocacy days, CIQS and Impact Public Affairs are working to continue to promote the work of CIQS’ members to critical stakeholders in governments across the country and are already gearing up to make the next set of advocacy days even better. ■ James Ball is a Research Specialist with Impact Public Affairs in Ottawa, Ontario. He works with a variety of clients to engage the government on Canadian construction issues, including the Canadian Institute of Quantity Surveyors.

L-R: Wyatt Clairmont, PQS, Kevin Magill, PQS, Jerry Bellika, Chief of Staff to the Minister, Transportation & Economic Corridors, and Ibrahim Oladapo, PQS

L-R: David Dooks, PQS(F), George Abraham Collaparambil, PQS, Scott Aitchison, MP for Parry Sound-Muskoka and Shadow Minister for Housing, and N. Kerry Mohur, PQS.

L-R: Tom Tamayo, PQS(F), Jodi Calahoo Stonehouse, MLA for Edmonton-Rutherford and Member of the Standing Committee on Resource Stewardship, and Allen Reid, PQS

L-R: Seàn Hollywood, PQS, Tammy Stockley, PQS(F), Thomas Osborne, ECNL, MP for Cape Spear, NL, and Parliamentary Secretary to the President of the Treasury Board in the City of Ottawa, and Ryan Hendricks, PQS ciqs.org | WINTER 2025 | Construction Economist 23

Legal

IMPORTANCE OF INDEPENDENT EXPERT ANALYSIS

IN CONSTRUCTION DISPUTES D

ISTOCK.COM/DOMOYEGA

By Alex Valova, BA (Hon.), LLB, LLM

elay and quantum experts play an important role in construction disputes.

When such disputes cannot be resolved and require a hearing, these experts often come front and centre. Walsh Construction Company of Canada v. Toronto Transit Commission is a recent case concerning the building of the Steeles West Subway Station. It demonstrates the importance of experts engaging in their own independent analysis rather than simply critiquing the methodology of other experts who are put forward.

The case touches on other related and important expert issues including bias. A few key takeaways when it comes to experts for those involved in construction litigation are as follows: • expert witnesses have a duty to give fair, objective, and non-partisan evidence • experts must be properly qualified • judges have a gatekeeper function which continues regardless of an expert’s qualification • it is not unusual for an expert to analyze work during the construction 24 Construction Economist | WINTER 2025 | ciqs.org

phase of a project and to continue with their analysis if litigation is commenced • bias that may not be disabling can go to weight With respect to the expert analysis that was provided to the court, Walsh’s expert was of the opinion that it was entitled to a total of 1,047 days of excusable and compensable delay, which was ultimately accepted by the court. A significant issue for the TTC was that its expert did not undertake a delay analysis of his own but rather was there to “solely criticize” Walsh’s expert. The court provided important comments as part of its analysis of the expert evidence which can serve as a list of what to do and not to do for experts.

Some of those comments can be summarized as follows: 1. having strong qualifications alone will not carry the day 2. patience, particularly during cross-examination, is a virtue 3. demonstrating in-depth analysis is critical to assist the judge in whose opinion to accept

4. being dogmatic is not helpful to the court 5. splitting hairs on the wording of questions frustrates the court 6. likewise, not wanting to answer the questions asked is frustrating and unproductive 7. being prone to advocacy takes away from independence Although the decision is currently under appeal, it has been long established that experts are expected to provide impartial, objective and independent assistance to the court, so it is valuable to consider the above the next time an expert takes the stand. ■ Alex Valova is a lawyer at Stieber Berlach LLP. She has experience dealing with complex construction disputes across Canada and the United States. In addition to her time in private practice, Alex spent several years working in-house for a large Toronto based construction company. Alex has also worked on the owner side on a new major transit project in Toronto.

New Designation Holders

NEW DESIGNATION HOLDERS Congratulations to the following ‘Designation Holders’ who have qualified as a PQS or CEC:

CIQS – British Columbia

Adrian Uy, PQS Farshid Ebrahimy-Dehkordy, PQS John Michael Datu Manaloto, CEC Kishorraj Piruthiviraj, PQS Morgan Reynolds, CEC Peiman Bandari Dijvejin, CEC Rusheb Maqboolahmed Arab, CEC Thilini Pavithra Madhuwanthi Lokupanagodage, CEC

CIQS – Maritimes

Hans Kojo Gaogli, CEC

CIQS – Members at Large Dawit Solomon Yilma, CEC

CIQS – Ontario

Chen Xu, CEC Davog Lynch, PQS Gregory James Smalley, PQS Harishankar Thevaraj, CEC

1169353_Editorial.indd 1

Hassan Saif Ul Haque, PQS Ira Kadare, PQS Jon Miranda, PQS Kai Yiu Tsang, CEC Mahdi Sayed Alavi, PQS Maliheh Falah Nezhad Tafti, CEC Michael Glynn, CEC Mohammadreza Shafieizad, PQS Manzar Quasim Mohammed Akhtar Huasin, CEC Moruf Adegboyega Adewale, CEC Naveen Goyat, CEC Neema Zawadi, CEC Olajide Friday Akinola, PQS Ozgur Mehmet Duman, PQS Priyatharshanan Mahendra, CEC Rinku Mary John, CEC Saman Fatema Mohd Ilyas, CEC Sayine Soujanya Pavathasan, CEC Shahriar Baybordi, CEC Shrutha Valiya Kollery, PQS Timothy Ifedapo Oladosu, PQS

Tsz Fung Cheng, CEC Youssef Mohamed Salaheldin Ali Ibrahim, PQS Yu Hin Lam, PQS

CIQS – Prairies and NWT Adil Khurshid Alam, CEC Akeem Ahmed Olashile, CEC Busiswa Nyoni, CEC Joshua Ferozdin, CEC Kesar James Mahay, PQS Lok Yi Wu, CEC Niamh Ni Chroinin, PQS Parmjit Kandola, PQS Seyedmaziar Azizi, CEC Thao Anh Nguyen, CEC Vahid Nasernezhad, CEC

CIQS – Québec

Abu Bakar Siddiq Joni, PQS Hongtao Lu, CEC Jean-Michel Tremblay, PQS

ciqs.org | WINTER 2025 | Construction Economist 25 11/13/2025 12:10:17 PM

Index to Advertisers A.W Hooker..................................................................................................https://awhooker.com/.................................................................................................9

C.B. ROSS Partners...........................................................................................https://www.cbross.ca..........................................................................................13

QS Online Cost Consultants........................................................................https://www.qsonlineestimating.com.........................................................................11

QSM Mechanical and Electrical Cost Consulting.........................................................https://qsmconstructors.ca/.......................................................................9

RONI Group.....................................................................................https://ronigroup.ca/.....................................................................................Outside Back Cover

26 Construction Economist | WINTER 2025 | ciqs.org 1169356_Editorial.indd 1

13-11-2025 16:52:49

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