On-Site Magazine

September/October 2011

www.on-sitemag.com

TEST DRIVE CAT CT660

PLUS:

INNOVATIONS IN SCRAPERS

KEEP ON TRUCKIN’ PROLONG THE LIFE OF YOUR VOCATIONAL TRUCK

IN THIS ISSUE: Demolition robots pack a punch No business like snow business PM #40069240

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MEET THE ALL-NEW SEVERE DUTY WORK TRUCK. Notice something different? That’s called work. Real, gritty, put-your-back-into-it, work. Which is exactly what the Severe Duty line-up was made for. These trucks are designed to easily maneuver their way out of everything from a budget crunch to the trenches of a work site. And with a chassis engineered for clear back of cab, body upfit is easy, no matter what sort of duty calls. There’s work.

And there’s SD work. Check out all the new work trucks at FreightlinerTrucks.com/WorkSmart

Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks Dealer nearest you, call 1-800-FTL-HELP. www.freightlinertrucks.com. FTL-MC-A-1053. Specifications are subject to change without notice. ©2011, Daimler Trucks North America, LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.

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CONTENTS

VOLUME 55, NO.6 September/October 2011

DEPARTMENTS 5 Comment

Take it for a spin

6

News Industry news

12

Test Drive

14

Construction Statistics

On-Site gets in the driver’s seat

The latest news on building permits and construction employment

COLUMNS 48 Software

Construction and the cloud

COVER STORY 22 Make it last

Choosing the right specs for the job, will prolong the life of your next vocational truck.

50

Risk

52

Funny Photo

54

Contractors and the Law

51

Index of Advertisers

Trends that can’t be ignored

Funny Photo contest, Calendar of events

Utility relocation risks

FEATURES 16 Mighty mites

Demolition robots may seem tiny in comparison to the jobs they are faced with, but they pack quite the punch— double their weight in breakout force.

35

42

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Not just scraping by Scraper manufacturers continue to innovate, being driven by a construction market demanding larger load capacity, more economical operation and tougher construction.

16

35

42

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Make big bucks this winter Turn your idle construction equipment into a snow removal fleet in the off-season and earn up to one-third more profits this year.

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PROFITABILITY

PRODUCTIVITY

Digging, hauling, dumping. Demand it all with the Detroit Diesel DD13 ® BlueTec ® engine. The high torque and power ratings of the DD13 take care of all your heavy lifting. And with BlueTec SCR emissions technology you can lower your fuel costs

Colors:

4cp

by up to 5%*. Not bad for a day’s work.

Check out how the DD13 works for your business at DetroitDiesel.com.

DDC-EMC-OTH-0068-0311. *Comparing a DD13 EPA 2010 engine with BlueTec emissions technology to a similarly spec’ed DD13 EPA 2007 with comparable engine ratings and load weights. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © Detroit Diesel Corporation. All rights reserved. Detroit Diesel Corporation is a Daimler company.

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Corinne Lynds

COMMENT

www.on-sitemag.com • Fax: 416-510-5140

Publisher | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com Editor/Editorial Director | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com Contributing Editor | James A. Barnes Art Director | Melissa Crook (416) 442-5600 x3260 MCrook@on-sitemag.com Associate Publisher | David Skene (416) 510-6884 DSkene@on-sitemag.com Account Manager | John Chiasson (416) 510-6791 JChiasson@on-sitemag.com Sales & Marketing Coordinator | Kim Rossiter 416-510-6794 KRossiter@bizinfogroup.ca Production Manager | Karen Samuels 416-510--5190 KSamuels@bizinfogroup.ca Circulation Manager | Selina Rahaman (416) 442-5600 x3528 SRahaman@bizinfogroup.ca Executive Publisher | Tim Dimopoulos (416) 510-5100 tdimopoulos@bizinfogroup.ca Published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. 80 Valleybrook Drive, North York, ON M3B 2S9 BIG Magazines LP Vice-President of Canadian Publishing | Alex Papanou President of Business Information Group | Bruce Creighton SUBSCRIPTION RATES Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues.

Privacy Notice From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: jhunter@businessinformationgroup.ca Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9 Canadian Publications Mail Agreement No. 40070230 On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time.

On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort.

DISCLAIMER This publication is for informational purposes only.

The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals.

Canadian publications Mail Sales Product Agreement 40069240 Established in 1957, On-Site is published by BIG Magazines LP a division of Glacier BIG Holdings Company Ltd. Inc. ISSN: 1910-118X We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.

Take it for a spin

B

eing the editor of a construction industry magazine may not hold the same sex appeal as taking the helm of National Geographic or even Sports Illustrated, but it does have a few perks.

Not all magazine editors have steel-toe boots, construction hats and safety vests in their wardrobes. But I do. I’m also the envy of every “boy” aged 2 to 92 that ever walked past a construction site and thought to himself: “It would be so cool if I could climb in that machine and operate it. I would dig the deepest hole and make the biggest mountain.”

Seriously though, On-Site does get invited to some interesting events that allow us to get up close and personal with the latest innovations in construction machinery. Whether it’s operating compact equipment in Sweden, heavy equipment in Vancouver, or GPS systems in California, a lot can be learned from these hands-on opportunities. So much so, that we’ve decided to launch a new feature in this issue to share our experiences with you. It’s called Test Drive.

This new feature will not be your stereotypical review of a new product, rather an opportunity for us to share with you what we see and learn when we’re out and about at various testing grounds, quarries and job sites.

The first segment of Test Drive comes from Caterpillar’s Edwards Demonstration and Learning Center in Peoria, Ill. where we checked out the new CT660 vocational truck.

In the Nov./Dec. issue, I will regale you with tales from my recent trip to Livermore, Calif. to try out Topcon’s machine control technology. The point of Test Drive is not designed to rate or compare a piece of equipment with its competitors, rather it’s meant to be a vehicle (pardon the pun) for us to share our experiences with you.

It’s not exactly running with the bulls or lunching with Wayne Gretzky, but we here at On-Site are pretty excited to share this new feature. Tell me what you think, email editor@on-sitemag.com.

Content copyright ©2011 by BIG Magazines LP, may not be reprinted without permission.

MEMBERS OF

Canadian Association of Equipment Distributors

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Canadian Construction Association

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Industry News Edmonton’s EPCOR Tower lights up the city Edmonton’s first downtown office building in 20 years officially opened September 26. Located at one of the gateway entries to the downtown core, this 30-storey building, (28 occupied floors), forms one of the tallest and most distinctive structures in the city. The 148-m tower incorporates a range of design, construction and operational features that go beyond basic energy savings to enhance occupancy comfort and improve overall efficiency and performance. Regarded as one of Canada’s most environmentally advanced buildings, EPCOR Tower has been selected for profiling at the World Sustainability Conference (SB11) in Finland this month.

Developed by QUALICO (development manager) with construction management services provided by Ledcor Construction, EPCOR Tower is designed by Kasian Architecture Interior Design and Planning Ltd., AECOM (multidisciplinary engineering services) and EIDOS (urban design).

Completed on time and on budget in less

The 30-storey EPCOR Tower is a landmark project for the city of Edmonton.

than four years, the building has a hard construction value of $235 million Canadian. The tower is targeting LEED Gold certification under the U.S. Green Building Council (USGBC).

EPCOR Tower is a landmark project for the City of Edmonton for significant economic and environmental reasons.

The tower is the first in a series of four high-rise structures to be built on a 37,000 m² site on land previously operated by Canadian National as a railroad.

The overall development of the site, now known as Station Lands, will eventually provide more than 240,000 m² of office, retail, hotel and residential living in a fully integrated downtown environment. The quality, diversity and magnitude of Station Lands is one of the most anticipated developments in the region and is expected to attract new business and investment

Construction employers call on government to overhaul Ontario College of Trades

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opportunities to the city core, positioning Edmonton as a leader in urban revitalization in North America.

“The Ontario College of Trades must not move forward in its current form,” said Sean Reid, of the PCAC and co-spokesperson for the Coalition. “The next provincial government must act fast to either overhaul or abolish the College of Trades and engage in a collaborative, open and transparent process with all stakeholders in the sector to address the serious issues affecting skilled trades in Ontario.”

As outlined in Cardus’s review, College of Trades: An Impossible Institution, the Ontario College of Trades has four key design flaws:

▲

A broad coalition of small, medium and large construction employers across Ontario is calling on the next provincial government to take immediate action to overhaul or abolish the Ontario College of Trades.

The call comes in response to a major study of the College completed by Cardus, a Canadian think tank. Created by the Government of Ontario in October 2009 with a mandate to modernize the skilled trades in Ontario, the College of Trades has been designed to be an ineffective, biased and potentially costly waste of taxpayer’s money, according to findings from the study.

EPCOR

On-Site | Sept/Oct 2011

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Case’s proven line of compact excavators just got a big brother. The all-new CX55B is a minimum tail swing (MTS) machine that sets a new standard in compact excavation.

With its impressive lift capacity, digging force and reach, the CX55B MTS is the ultimate in performance. It comes “thumb-ready” and boasts standard auxiliary hydraulic features that include bi-directional flow and proportional controls. Featuring 10% more cab space, a slide-up front window that’s 20% wider, as well as a larger rear window for increased visibility. Its interior ergonomics provide maximum operator comfort, and the features don’t end there. With a 40% larger fuel tank, you’ll spend less time refueling and more time on the job. Want to learn more? Dig in at casece.com.

©2011 CNH America LLC. All rights reserved. Case is a registered trademark of CNH America LLC. www.casece.com

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INDUSTRY NEWS ...continued from page 6

1. The College was founded on the premise that a self-regulating body would solve the very real issues in Ontario’s skilled trades sector with no research-based evidence to support this claim.

2. The College is poised to become a massive bureaucracy to support 157 trades in Ontario with a significant financial cost, which will ultimately be funded by Ontario taxpayers, businesses and skilled tradespeople.

3. The College’s governance structure is dominated by representatives of compulsory certified trades in Ontario, to the detriment of uncertified trades, which form the majority of skilled tradespeople in the province.

4. The College’s role is redundant as skilled tradespeople

Building industry raises $25,000 for charity More than 120 members of the Building Industry and Land Development Association (BILD) participated in a collective cycling event on Sunday, September 25 in support of Habitat for Humanity Toronto, raising more than $25,000 as a result.

What made this event, called the Ride for Humanity, so special was the fact that it was dedicated to the late BILD president and CEO Stephen Dupuis, who passed away suddenly on September 23.

“Stephen was an indoor cyclist, which was something he brought up quite frequently, so this was particularly exciting for him,” said BILD Chair Paul Golini Jr., who led the way on his bike for the full 50 kilometres. “He was so proud of creating such a unique event for our industry, we felt like we had to make sure it would go on as planned. This Ride for Humanity was a tribute to Stephen and everything he has done for both the industry and the community, which is why it will continue as an annual tradition in his honour for years to come.”

Proceeds will go towards Habitat for Humanity Toronto—BILD’s community partner and a charity Dupuis has supported for nearly eight years—and its goal to build affordable housing

8

in Ontario are already well regulated by other regulatory bodies.

“This province is in the midst of a fragile economic recovery with the skilled trades playing a critical role in supporting our economy,” noted Jason Ottey of RESCON and Coalition co-spokesperson. “The last thing Ontario’s employers and skilled tradespeople need is an ineffective, unfair and expensive College of Trades that will do nothing to help us address the critical issues facing our sector, including a projected shortage of 360,000 skilled tradespeople by 2025.”

The Ontario College of Trades has not defended itself against these claims.

for low-income families.

“For months, as BILD planned the first annual Ride for Humanity, it was clear that this event was going to be quintessential Stephen—full of fun, energy and, most importantly, purpose,” said Neil Hetherington, CEO of Habitat for Humanity Toronto. “It was clear that not

only was his enthusiasm contagious, but his engaging disposition also lead people to do great things, and the Ride for Humanity was a great thing, raising funds in support of BILD’s 8th Habitat Toronto sponsored home. More importantly, however, it became a fitting memorial to our great friend.”

Aecon opens Western Canadian headquarters in Calgary Aecon Group Inc. has established its Aecon West Headquarters in Calgary, Alta.

“This new headquarters anchors Aecon’s presence in Western Canada,” said John Beck, Aecon’s chairman and CEO, who was joined by Calgary deputy mayor Brian Pincott and Bruce Graham, president and CEO of Calgary Economic Development, for the announcement in Calgary.

“Aecon’s business in Western Canada has shown impressive growth over the past few years, to the point where today, Aecon’s revenue and employee base is as significant in Western Canada as it is in Eastern Canada,” said Beck. “Having a core office here enables us to further strengthen our key customer relationships in the west, integrate our diverse service lines to provide unparalleled solutions to our clients, and cement our ties to the business community in the west.”

Graham, praised Aecon for reinforcing its concrete presence in Calgary with a high level corporate office. “Aecon’s decision to choose Calgary confirms the message that Calgary is indeed a headquarter city and will continue to be a key driver in the Canadian economy in the years to come,” said Graham. “Aecon’s commitment to Calgary is good news for both business and people.”

On-Site | Sept/Oct 2011

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INDUSTRY NEWS

New concrete increases bridge decks lifespan by more than 20 years The National Research Council of Canada (NRC) has developed a more durable concrete that will increase the average lifespan of bridge decks by more than 20 years compared to typical high-strength concrete, and by more than 40 years compared to normal-strength concrete.

This high-performance concrete has been specially formulated to minimize shrinkage, which is typical of high-strength concrete, while maintaining its excellent mechanical properties. It also greatly reduces cracking, which diminishes the penetration of aggressive agents into the concrete, such as chlorides from the de-icing salts used on roads. As a result, it takes considerably more time for the chlorides to reach the steel reinforcement, initiate corrosion, and induce further damage to the structure.

“The key difference is in the sand—lightweight porous shale fine aggregate, which replaces about a quarter of the normal sand used to make concrete,” says Daniel Cusson, a senior researcher at the NRC. “This porous sand can hold up to 20 per cent of its own weight of water, which serves to

uniformly cure the concrete from the inside, thus preventing self-desiccation.”

With a unit cost only five per cent higher than that of standard high-strength concrete, Cusson expects concrete bridge decks made with this new concrete will last longer, save taxpayers money from annual bridge maintenance, recurring repairs and associated traffic disruption and replacement.

Currently, this new self-curing high-performance concrete is being put to the test at the NRC outdoor slab testing facility, where its mechanical performance and corrosion resistance is being monitored with embedded instrumentation and periodic non-destructive testing.

This new concrete formulation is being considered for the deck construction of the Canal Bridge, which is part of the North Channel Bridge replacement project in Cornwall, Ont. The $75-million infrastructure project from Federal Bridge Corporation is currently underway.

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On-Site | Sept/Oct 2011

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INDUSTRY NEWS

IN BRIEF New Holland Construction is refocusing its North American operations on compact product lines for the landscaping, utility, residential construction and agriculture industries, among others. As a result, starting in 2012 New Holland Construction will begin withdrawing from the North American market its crawler dozers, motor graders, 80+ horsepower wheel loaders, 6+ ton

excavators, and telescopic handlers. The company will continue to offer compact products and associated attachments, including the successful skid steer loaders, compact track loaders, tractor loaders, loader backhoes, compact wheel loaders, and compact excavators.

Bird Construction Inc. announced that its H.J. O’Connell, Limited, subsidiary has executed a $100-million unit price contract with ArcelorMittal Mines Canada Inc. for the removal of waste rock at the client’s Mount Wright mine located near Fermont, Que. Work will commence in the fall of 2011 and is expected to be completed by the spring of 2015.

As part of a major campaign to raise awareness about Canada’s deteriorating public infrastructure and the importance of building in a more sustainable fashion in the future, the Canadian Society for Civil Engineering (CSCE) is sponsoring the Award for Government Leadership in Sustainable Infrastructure. The Award will recognize those in the public sector who, through a project or program, are building for the future. It will be presented for the first time at the CSCE annual conference in Edmonton, in June, 2012. Nomination forms and terms of reference are available at www.csce.ca/leadershipaward.

Applications close December 15, 2011 for this year’s Award.

Aecon Group Inc.’s Lockerbie and Hole Eastern division has been awarded two significant contracts at mine sites in British Columbia and New Brunswick. The contracts, with the Thompson Creek Metals Company and the Potash Corporation of Saskatchewan Inc., are expected to generate over $250 million in revenues for Aecon.

Under the first contract, Aecon will install the interior

structural steel, equipment, piping, electrical and control systems at Thompson Creek’s Endako Molybdenum Mine site.

The second contract was awarded by the Potash Corporation of Saskatchewan Inc. for work at their Picadilly site in Penobsquis, New Brunswick.

SNC-Lavalin Operations & Maintenance will acquire Arcturus Realty Corp. The completion of the acquisition is subject to the meeting of customary conditions. If all of the conditions are met, the acquisition is expected to be completed by November 30.

Arcturus manages over 35 million square feet of office, retail and industrial properties nationally.

The City of Guelph has been at the forefront of municipal organic waste composting for over two decades. However, five years after the original plant closed due to structural concerns, the Maple Reinders Group put forward the winning proposal to design, build and operate a modern, new organic waste processing facility. On September 27, the facility, which is part of the City’s Waste Resource Innovation Centre, was officially opened and received the first truckload of organic waste to be composted.

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Sept/Oct 2011 | On-Site

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T S E T IVE DR TESTING CATERPILLAR’S NEW VOCATIONAL TRUCK

T

he On-Site team is often invited to job sites, testing grounds and quarries to learn about new products and generally put them through their paces. In this, our first, segment of Test Drive we get up close and personal with Caterpillar’s debut in the vocational truck market.

We met up with colleague James Menzies, executive editor of sister-publication Truck News, at Cat’s Edwards Demonstration and Learning Center in Peoria, IL. At centre-stage was the long-awaited Cat CT660. Introduced at Conexpo-Con/Agg, Caterpillar’s product team was excited to highlight its entry into the competitive vocational truck market place.

On arrival, product manager Gary Blood introduced the CT660 as the result of years of extensive research, listening to “VOC” (voice of customer) then satisfying those needs with a premium truck. The ability to maximize efficiencies by matching the truck with Cat equipment and its proprietary Product Link telematics system were critical design considerations to enable Cat to take full advantage of their relationships with dealers and Cat-equipped contractor customers.

Given James’ extensive experience in the truck world we handed him the keys (and the pen).

Driving the CT660 on a rain-shortened route at Edwards provided the opportunity to assess its maneuverability, ride and creature comforts but it would not be fair to fully evaluate the truck after roughly 20 minutes behind the wheel. That said, the CT660 did impress on several fronts. The first thing you’ll notice when taking in the exterior of the truck is its bold stance and stylish front end, which it borrows from Caterpillar equipment, specifically its 980K wheel loader. Cat designed the truck to be both stylish and functional, and strike a fine balance with a look befitting a premium vocational truck with easy-to-replace components that are frequently damaged. For instance, individual sections of the three-piece bumper can be replaced, reducing inevitable repair costs. The fenders are constructed of a durable flexible rubber composite material, which is damage-resistant and bounces back into shape after contact.

The interior of the CT660 is rich by vocational truck standards.

On the gray, overcast day of my drive, the backlit gauges shone bright and lit up the dash like a Christmas tree. A unique attribute to the CT660’s dash is the marriage of the speedometer and tachometer into a single gauge allowing the driver to assess both with a single glance.

12

Visibility over the sloped hood is superb and the truck can be spec’d with either a one- or two-piece windshield. Cowl-mounted mirrors remain in position through the frequent slamming of doors vocational trucks are typically subjected to.

One of the more interesting spec’s available on the CT660 is the company’s own CX31 torque converter-style automatic transmission. While new to the trucking world, the CX31 has been around the block, designed initially for use in Caterpillar’s articulated dump trucks. The transmission was smooth as silk on my short drive and it impressively held the truck’s position on a steep grade while I clumsily moved my foot from brake to accelerator to resume from a complete standstill. Steve Rutherford, marketing manager with Cat Powertrain, suggested the CX31 is 5 to 8 per cent more fuel-efficient than the other highly respected Allison automatic option. A 5 per cent improvement in fuel mileage, by the way, can provide fuel savings of upwards of $3,000 per year.

The CT660 is powered by either the CT11 or CT13 Cat engine, which admittedly are International MaxxForce designs programmed to excel in Caterpillar’s vocational applications.

Horsepower ranges from 330 to 475 with peak torque ranging from 1,250 lb.-ft. to 1,700 lb.-ft. Adopting Navistar’s in-cylinder EPA2010 emissions strategy means there’s no need for diesel exhaust fluid (DEF) or all the hardware associated with the selective catalytic reduction (SCR) system used by all other engine manufacturers.

Cat officials said they will be priced competitively with other premium vocational trucks—namely Paccar siblings Kenworth and Peterbilt.

According to George Taylor, director of Cat’s global on-highway truck group, about 70 per cent of vocational truck buyers have an existing relationship with Caterpillar. The plan is to leverage these relationships into being the number one or two player within the next five years.

That’s an ambitious goal, but at first glance the truck itself appears to be up to the challenge.

James can be followed at trucknews.com. Send comments to editor@on-sitemag.com.

On-Site | Sept/Oct 2011

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CONSTRUCTION STATS A SELECTION OF DATA REFLECTING TRENDS IN THE CANADIAN CONSTRUCTION INDUSTRY

Total value of permits $ billions 7.4 7.0 6.6 6.2 5.8 5.4 5.0 4.6 4.2 3.8 3.4 3.0 J J 2008

Building permits down in July The value of building permits edged down 0.6 per cent to $6.6 billion in July, following increases of 2.8 per cent in June and 20.9 per cent in May. Lower construction intentions for the non-residential sector were partially offset by gains in the residential sector. After two consecutive monthly gains, permits in the non-residential sector decreased 4.5 per cent to $2.7 billion.

Employment

J 2010

J 2011

Payroll employment, earnings and hours

thousands 17,600

In July, average weekly earnings of non-farm payroll employees increased 0.1 per cent from the previous month to $872.70. Year-over-year growth in average weekly earnings for the construction sector exceeded the national average of 2.2 per cent.

17,400 17,200

17,000

Year-to-year change in average weekly hours and

% average weekly earnings

16,800 16,600

J 2009

5 4

J

J 2008

J 2009

J 2010

A 2011

3 2

Unemployment rate holds steady Employment was little changed for the second consecutive month in August and the unemployment rate edged up 0.1 percentage points to 7.3 per cent. In the past 12 months, employment has grown by 1.3% (+223,000), primarily in Ontario and Alberta, and among private sector employees.

In August, there were employment losses in construction; transportation and warehousing; and natural resources.

1 0 -1 -2 -3 J

J 2009

Source: Statistics Canada

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J 2010

J 2011

Change in average weely hours Change in average weely earnings

On-Site | Sept/Oct 2011

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ONSite_

MOVING AHEAD ALL DAY. EVERY DAY.

NEW CAT® K SERIES WHEEL LOADERS TM

Get to know the Cat® 966K, 972K and 980K. • New joystick steering; low-effort controls improve operator efficiency • Best-in-class fuel efficiency; more material moved per gallon of fuel burned • Exclusive Cat Tier 4 Interim Emissions System; eliminates need to shut down for regeneration What else is new? Take a virtual test drive. Scan the QR Code below with your smart phone or visit www.CatAllDay.com/loaders.

Don‘t have a QR Code Reader?

Just open your mobile browser on your smart phone and visit scan.mobi.

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity herein, are trademarks of Caterpillar and may not be used without permission. © 2011 Caterpillar. All Rights Reserved.

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DemOlitiOn

migHtYMITES

BY JIM BARNES

W

hen you watch the tiny machine annihilate a concrete structure seemingly by itself, it is easy to think of it as a robot. However, look further, and you’ll see the operator hovering at a safe distance with a control pendant. The machines are actually an effective application of remote control in demolition.

These demolition machines were introduced about three decades ago in Europe. Growth in Canada has been slow, with potential purchasers voicing concerns about the machines’ cost, small size, and use of electrical power. Unfamiliarity may be an issue, too: this is a machine you don’t touch while you are using it, unlike an excavator or wheel loader.

Machine OEMs are getting optimistic. In fact, “the Canadian market is going crazy,” says Mike Martin, product specialist, Brokk Inc., Monroe, Wash.

“The exchange rate has been a big help,” he says, adding that increasingly stringent occupational health and safety codes are

16

also driving interest. “We have seen a spike of interest in Ontario and Quebec.”

Trends in demolition are another factor. As aging institutional and industrial structures are upgraded, the need for a small, powerful demolition machine that can access confined spaces and emit no fumes becomes acute.

Pint-SiZeD POWer The concept is pretty simple. A compact machine with a low centre of gravity is equipped with powerful hydraulic tooling and controlled by a pendant, either corded or wireless.

The benefits are significant: Size: In some applications, the demolition machine may well be the only machine that can access the job.

Productivity: The machine may enable you to complete a job with fewer workers. This can go beyond the obvious payroll savings to making up for skilled labour shortages. “By reducing head

On-Site | Sept/Oct 2011

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Photo: Husqvarna Construction Products.

DemOlitiOn

“ROBOTIC” DEMOLITION MACHINES TAKE BIG POWER TO SMALL PLACES count, you are reducing your exposure to injuries and employee issues in general,” says Martin.

A contractor in Calgary replaced six workers using manual tools with one demolition machine, an operator and a labourer, according to Shawn McNeil, technical service manager, Husqvarna Construction Products in North Bay, Ont. There was no loss in productivity.

Comfort: The operator is somewhat isolated from dust and debris, noise and vibration, and free from fumes. Levels of fatigue are far less—it’s a lot less tiring to operate a control pendant than a jackhammer.

Safety: Protecting your best workers has a value. So does avoiding liability in worker’s compensation claims.

Visibility: the operator has a completely unobstructed view of the job site, improving productivity, quality and safety.

Electric power: in some urban settings and in confined spaces, gasoline or diesel engines can’t be used.

FirSt imPreSSiOnS First impressions of the machines can be erroneous. “Guys walk by a machine and say ‘That thing’s a toy,’” says Martin. “The biggest question is, how can this machine—with the same hammer— outperform a skid steer?”

Price is another concern for many. A smaller demolition machine might cost in the $90,000 ballpark, with larger units going for about $140,000. Customers look at the cost, and then they look at the size. “They feel they have a hard time justifying it, because it is 32-in. wide,” says McNeil. “The illusion they have is that they can get something at a lower price point to do the same amount of work.”

The fact that the machines are electrical and tethered to a cord connected to building power or a generator also makes some contractors uneasy. “They’re used to just turning on a diesel and driving it into a back yard,” says McNeil.

People are always amazed at its size when you pull it off the trailer, says McNeil. “But where guys’ jaws drop is when you put

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DemOlitiOn

the breaker on, and you go up to a piece of reinforced 14-in. concrete, and break it in two or three hits. They can’t believe that it hits that hard.”

So how does such a small machine hit so hard?

“The key concept is that we don’t need to worry about breakout force in the boom,” says Martin. Breakout force is a key measurement for excavators, because an operator is sitting in the machine, Martin notes. “I do not want the boom to be more powerful than the body the operator is sitting in. I don’t want him tipped over or sucked into a hole.”

Martin suggests that many excavators can handle approximately 70 per cent of their weight in breakout force. “For example, if it’s a 10,000-lb. machine, it might have 6,000 lb. or so of breakout force,” he says. With the demolition machines, it’s two to one. “If you have a 2,000-lb machine, it will have about 4,000 lb. of breakout force…

We engineer a machine that holds the biggest breaker possible, and we build a boom that can absorb and exert—day in and day out—the huge amounts of energy that go into a boom when you are breaking,” says Martin.

“The bottom line is that because of the cylinder diameters, the pins and bushings, the machine has enough mass to absorb all of this energy,” says Martin.

The machines typically have a high power-to-weight ratio. For example, one Husqvarna model weighs 4,300 lb. without tooling and has a 22-kW engine, according to McNeil.

Brokk supplies machines that range in weight from 1,000 lb. to 26,000 lb., meeting a range of demolition needs. The 2,000-lb. machine can reach and break concrete 13 ft. in the air.

“The most important thing is having enough output to do the work. Using a heavy breaker attachment requires a powerful engine,” notes McNeil.

nOt JUSt BreaKing Another common perception is that the machines can only be used for breaking. “That’s what we are trying to educate people on... the utility of the machine,” says Martin. “The biggest push that we have done is with the attachments.”

Currently, grinders, shears, crushers, drills, buckets, grapples, saws—“all kinds of end effectors,” are available, according to Martin. “We have made tremendous strides in the last five or six years in broadening the tool offering, not only designing but finding vendors who have demolition-quality attachments.”

Tools have to be specified carefully for these machines. “Our machine can turn a (cheap) attachment into junk in four hours,” says Martin. The key is making sure that the user gets a satisfactory return on his tooling investment. nicHe PrODUct Its price makes the equipment a niche technology. If volumes could be brought up, the prices might decrease, leading to more mainstream applications, says Martin. But for the time being, potential users sometimes get sticker shock.

Priestly Demolition Inc. of Kettleby, Ont. has a history with the technology, but is not involved with it at present. They acquired their original machine for a limited-access job, but have not had much use for it since, says Ryan Priestly, president. “We’ll get into

Now you can follow On-Site on Twitter @OnSiteMag to get the latest industry news, reports and links pertaining to Canada’s construction market.

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Photo: Brokk

Demolition

it again if we have a need for it,” he says, but like any other equipment decision, it has to make financial sense.

As for the Graff Co. ULC of Brampton, Ont., the machines are best for “a niche market that we have gone away from,” says John MacDonald, division manager. They have an older machine but use it rarely. Jobs have to fit the niche: need for electric power, limited accessibility, and high power-to-weight ratio.

“We use it for interior demolition, where everything has to be electric. The one we have carries a 600-ft. lb. hammer, so it packs the punch of a standard backhoe. We would use it on a bank vault, for example,” says MacDonald. “The thing can get down to 48 in. wide and go through a double door.”

“For a while, we did a lot of refractory work—taking out the bricks from inside kilns, for example,” says MacDonald. However, he adds, the company has not been pursuing those kinds of jobs lately.

Remote-controlled hydrodemolition Hydrodemolition—using water at pressures of 800 to 1,500 bar to remove substandard concrete—is a sophisticated technology. Remote control keeps it safe and productive, notes Conjet AB of Sweden.

A remotely operated, computer controlled, fully adjustable waterjet machine is at the core of Conjet’s system.

An articulating boom gives the operator the flexibility to use the machine for a variety of tasks on horizontal, vertical, angled and curved surfaces, ceilings and soffits.

The hand-portable, remote control console lets the operator stand at a safe distance from the process. It also provides details of the computer-controlled operations and functions. Alarms are displayed if the equipment deviates from its pre-set sequence, and self-diagnostics are included.

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Renato Palmieri, director, says that Groupe Prodem, Montreal, acquired a machine last March. They are using it for interior demolition. “It’s more expensive than your conventional excavator converted to electrical power, but it has a niche and a use. As you learn the machine, you create new opportunities for yourself,” he says.

The features that interested the company were electric power and compactness. “Then once we tried it, we saw the punch it had.

It made all the sense in the world,” says Palmieri.

Infrastructure renewal could bring a lot of attention to the machines. “You have to look at the current state of the economy and the ‘shovel ready” projects,’” says Martin. As money is spent on infrastructure to support the economy, projects in institutional building and transportation will come available. “The work now is highways, bridges, tunnels. We are making a strong push in the tunneling industry. We’re doing a lot of dam retrofits,” where they are replacing old turbines,” says Martin.

As the range of tools increases, the number of possible applications increases,” notes McNeil. A contractor in Regina bought a machine for a large job at a potash-processing plant. “Now that they have it, they use it in any application they have. If they go into a grocery store that needs renovation, they’ll use the machine to saw-cut the floor for new plumbing and electrical.” Before that, they would have done the work with a propane-converted unit or with manual tools. “Once you have it, the jobs it helps you bid on are endless.”

Electric mini-excavators Some contractors prefer to use custom electric mini-excavators for these types of jobs. It’s a less-expensive technology they may be more familiar with. “Some guys are saying, ‘I can go out and get an electric mini-excavator for $50K and do exactly what you can do with this,’” says McNeil. Again, it’s a question of the job’s parameters.

Priestly acquired a demolition robot about 10 years ago for just that reason: a mini-excavator wouldn’t fit on the freight elevator. Compactness may also be an issue on some jobsites, with a

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Demolition

typical two-piece excavator boom having overhead clearance issues, notes Martin.

The demolition machines tend to win on power, too. A 4,000-lb. demolition machine provides the same output as a mini-excavator four or five times the size. “They are six or eight feet wide,” says McNeil.

You could also look at a comparison of same-size machines.

“The [demolition] machine competes in terms of size with machines that would have only 150 ft.-lb. hammers,” says MacDonald.

Training Training focuses much on the interface and familiarization. “Our customers usually have a very good under-

Palmieri. “You can’t feel what the machine is doing, so there is an adjustment.” At the same time, his operators are favourably disposed toward the machines, he says. “It’s still new to them—it’s not everyone who has one. They’re actually keen on using it.”

Jim Barnes is On-Site’s contributing editor. Send comments to editor@on-sitemag.com.

Built for demolition.

“Probably the biggest barrier we have to knock down is getting them to use the machine to its capacity.” standing of the process of demolition...

All the experienced user really needs to learn is the interface, which is pretty straightforward,” says Martin.

“Probably the biggest barrier we have to knock down is getting them to use the machine to its capacity.

They are just not comfortable with this little machine being able to do what it does,” says Martin. “The hardest thing is getting users to understand that the machine can exert and absorb all this energy, especially since they are not sitting on the machine and feeling it the way they usually do.”

“Anybody that can operate a backhoe can operate one,” notes MacDonald. “You’re still running it with two levers—It’s similar to running any excavator.”

Familiarization is key. “These are machine operators who are used to sitting on an excavator, where you can feel the machine working,” says

The largest robot in Husqvarna’s line of demolition robots, the DXR 310 is built to handle demolition and light excavation work indoors and outdoors. The telescopic boom has a range of approximately 18', including breaker, and the individually controlled outriggers enable the robot to work on uneven surfaces and close to walls.

This highly maneuverable machine can pass through normal-sized doorways, climb stairs and the lowprofile body ensures operators can see over it when working - creating a safer and more efficient working environment. The DXR 310 is controlled by a unique, user-friendly remote control featuring Bluetooth technology, an innovation for this type of machine.

Husqvarna’s DXR 310 was built to be sturdy, powerful and smart.

Performance you can trust everywhere, every time.

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Cover Story / Financing

Make it l

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Cover Story / VOCATIONAL TRUCKS

t last

Choosing the right specs for the job, will prolong the life of your truck

By David Godkin

T

wo contractors walk into a bar.

The first contractor says “Man, I bought this vocational dump truck with a 350 hp engine three years ago and it’ll haul anything.”

Then he proceeds to describe the make and model. The second contractor says “Gee, I bought the identical model three years ago with a 500 hp engine; it cost me a bundle and it can’t haul my grandma. What gives?”

The first one says “Well, maybe you jus’ `spec too much.”

Ok. Dumb joke. Still, Brian Lindgren, vocational market sales director for Kenworth Truck Company in Kirkland, Wash. tells us a common mistake is to over-spec a vocaNavistar tional truck’s engine, costing you more and lowering the weight you can haul. It raises an even bigger question: how do I spec a really large vocational dump truck with the right strength and hp so that it lasts? We posed that question to five vocational product specialists and got some interesting answers.

Perhaps the strongest reaction was to Lindgren’s comment about specing too much engine power. “350 to 400 hp is plenty for most applications,” he was recently quoted as saying, “Extra hp just uses more fuel, puts more strain on the rest of the drivetrain, and adds up-front costs.”

Greg Robinson, sales manager at Freightliner’s First Truck Centre in Edmonton countered, saying you’ve got to tailor your power needs to the marketplace you’re in. “In Alberta where you’re selling to the owner operator market it’s almost like you can never get

enough horsepower because of the changing gross vehicle weights they allow. And if anything we see the opposite where a guy gets a truck more in the medium-duty line and then he wants to pull a pup trailer with it and he’s underpowered and doesn’t have the performance.”

Duncan Schroff, marketing manager for Finning in Surrey, B.C. agrees. “Sometimes it appears that they spec too much power, but a few years down the road they may want to haul a bigger load with it and they may need that power.” For his part, Western Star product manager Dan Silbernagel agrees that some over-spec their engine requirements, but offers a different take on why some owner/ operators “can never get enough hp.”

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VOCATIONAL TRUCKS

“Some of those customers who are specing above 450 hp are probably the owner/operators out there who do it for the flash of saying `I have 500 or 550 hp.’”

Silbernagel adds that 500 hp producing 1,850 torque is going to put more stress into your rear axles than 450 hp producing 1,650 torque (though clutch, drive shaft and transmission would be sized correctly for that torque rating, he adds). At the same time, overspecing an engine won’t result in higher fuel costs if you’re not using that power. At the end of the day, the biggest bar to specing to a very large engine is the upfront cost: why pay for power, if you may never use it?

LESS IS NOT ALWAYS MORE “Under-specing will have a greater detriment to the life of a vehicle and its productivity than anything else,” says Silbernagel. Most agree that includes those parts of the vocational truck requiring heavy-duty components, too, including rails and axle end components. You may not have noticed any immediate problems after that novice salesperson convinced you to go with axles or suspension too light for the vocational truck you need, says Kenworth vocational marketing manager Alan Fennimore in Kirkland, Wash. But make no mistake; you’ll notice them down the road.

“An experienced salesman knows the heavy duty suspension’s going to last four times longer. You’re going to have fewer wheel end issues `cause you’re forced to get better brakes, better axle, better hubs, better bearings etc.”

An experienced salesman also knows to match the chassis spec to the load type, e.g. gravel versus sand or asphalt. “You can tune the spec to be very efficient at doing a few things very well, but you may end up in a notso-good situation when taking on a different type of payload,” says Mack vocational products marketing manager Curtis Dorwart.

Choosing the body type, e.g. aluminum versus steel, will play a big role here, too, he says.

“Additionally, if you are working with punishing loads like debris and rock, the extra shock to the chassis caused by the loading process—having payload material dropped

24

KENWORTH

FREIGHTLINER

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VOCATIONAL TRUCKS

KENWORTH

into the truck by a wheel loader, for instance—can make for short life of lightly spec’d components.”

“That’s definitely so,” says Silbernagel. “If you start skimping to save weight or money in areas that don’t make sense you’re going to drastically reduce the life of a vehicle, especially in some of these harsh vocational applications.” The message is simple, he says: Spec your vehicle to the appropriate strength and power and you’ll increase its lifespan.

Schroff reminds us “the cheapest part of owning a truck is buying the truck, the most expensive part is operating it.” The few thousand dollars you save by going with a lighter suspension or axle is more than offset by “spending on repairs and downtime and everything else that goes along with that.” But it’s not cost that’s driving that purchase of a lighter component, it’s failing to consider the future,” adds Robinson.

“A lot of guys will start out and it’s only a body job and then the next thing you know they’re pulling a backhoe or a bobcat and you’re really taxing the abilities of that vehicle. That’s where I see the underspec side of things.”

Specing high enough to obtain adequate strength and power is key to ensuring a long life for your vocational truck. But Silbernagel says you also ensure a truck’s durability through regular main-

26

“If you start skimping to save weight or money in areas that don’t make sense you’re going to drastically reduce the life of a vehicle, especially in some of these harsh vocational applications.” tenance, for example when running double channel rails in heavy applications.

“If you have the Grade 8 frame fasteners and you’re not properly re-torqueing your chassis every so often, they will loosen up on you and your frame could flex more and rub more than you want it to and cause some problems down the road. That’ll open it up and increase contaminates getting between the rails, corroding and rusting out your rails.”

Make it last In classic understatement, Dorwart calls the vocational dump truck “a really interesting piece of equipment.” Not only must it

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er loaders ® o-speed skid ste The new Terex tw eed than aximum ground sp deliver a higher m ® models . In fact , Holland comparable New faster than the ® TS V5 0 is up to 64% the Terex u can ® . And the faster yo New Holland L170 ’s good at u can get done. Th move, the more yo and g kin u’re loading, pic news , whether yo ing ov m re g, gin , back drag carrying, grading task . to sk ta m fro g zippin snow — or simply k.com rexrealitychec te at ts fac e Get th

*Based on manufacturer’s published specifications for Terex® TSV50, TSV60, TSV70 and TSV80 (all with two-speed option), and New Holland® L170, L175, L180, L185 and L190 skid steer loaders.

Product specifications and prices are subject to change without notice or obligation. The photographs and/or drawings in this document are for illustrative purposes only. Refer to the appropriate Operator’s Manual for instructions on the proper use of this equipment. Failure to follow the appropriate Operator’s Manual when using our equipment or to otherwise act irresponsibly may result in serious injury or death. The only warranty applicable to our equipment is the standard written warranty applicable to the particular product and sale and Terex makes no other warranty, express or implied. Products and services listed may be trademarks, service marks or trade-names of Terex Corporation and/or its subsidiaries in the USA and other countries. All rights are reserved. Copyright Terex Corporation 2011. Terex is a registered trademark of Terex Corporation in the USA and many other countries. New Holland is a registered trademark of CNH America LLC.

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VOCATIONAL TRUCKS

“run at the highest possible legal weight with the highest possible payload [which usually means the lightest possible chassis and body] it must then go through cycles of a heavily loaded front axle to a heavily loaded rear axle with a very high centre of gravity [during the dumping process].” In short, the vocational truck is under enormous strain over its lifetime. Lessening that strain will extend its usefulness and lower your long-term costs.

One way to lower the strain is to reduce extraneous weight by carefully targeting those areas needing less rather than more. Specing wheels, air tanks and cross members in aluminum instead of steel will also lower the weight significantly. One example of this is Caterpillar, which produces an aluminum cab that weighs 250 to 300 lb. less than a steel cab.

CATERPILLAR Robinson thinks aluminum is the way to go, too. But, he’s quick to caution us against compromising a vocational truck’s durability and functionality. Using an alujust get destroyed.” His other caution is the use of aluminum minum gravel box in an application that includes demolition or air tanks. concrete removal is an obvious no-no. “The aluminum box will “The only situation there that you might avoid is if the vehicle is in a severe off-road application where sometimes you might get debris. Or your air tanks might be mounted below the frame rail and come in contact with rocks or stumps.”

Specing a smaller fuel tank to reduce weight is another option. Lindgren believes you should use the smallest tank you can get away with. Silbernagel agrees: “especially if operators go back to the same terminal each night and leave from the same terminal each morning.” Building it into your checklist, leaving or returning, allows you to fuel once a day.

“Not a bad suggestion,” says Robinson, but not so good in northern Alberta where distances to the job site can be very long.

“That’s not always a reasonable option, At Weber MT, our soil compactors but you certainly can look at specing minicome with an available five-year warranty. mum fuel required to do the job.”

Selecting the right transmission and axle configuration in heavier applications can also lower weight and improve durability. Mack’s Maxitorque T300 series offers a multiple-speed reverse 10-speed as well as 13- or 18-speed transmissions to meet high-torque requirements, its lower weight aluminum cases may eliminate the www.webermt.us  1-800-709-3237 need for an auxiliary cooler.

Is this your warranty?

For quality you can trust,

think blue.

28

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5462-9_

Whole new truck.

Same badass philosophy. bad• ass\ -as \ adj 1. distinctively tough or powerful; formidable; excellent; so exceptional that it’s intimidating No, you don’t need to know what badass means. You just need to know where you can get it.

See your Western Star dealer to find out more or go to ONETOUGHTRUCK.COM

WS/MC-A-432. Specifications are subject to change without notice. Western Star Truck Sales, Inc. is registered to ISO 9001:2000 and ISO 14001:2004. Copyright © 2011 Daimler Trucks North America LLC. All rights reserved. Western Star Truck Sales, Inc. is a subsidiary of Daimler Trucks North America LLC, a Daimler company.

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VOCATIONAL TRUCKS

WESTERN STAR

Meantime, double reduction rear axles, which split gear reduction into two parts reduce stress and prolong life.

Clearly, specing a good vocational truck so that it lasts means looking at your applications. Specing the correct axle ratio and

overdrive transmission top gear for highway travel at 100 km/hr not only helps you locate your rpm “sweet spot” for a better ride and lower fuel costs, it extends the life of the vehicle. Pay attention to a vehicle’s gradeability, too. Maintaining 100 km/hr on a one per cent grade makes it a very nice driving truck, says Schroff, but it’s also easier on the vehicle over time.

Pulling in the same direction Whether you’re considering a shorthaul vocational mixer or long-haul dump truck, you spec the best vocational ve-

“...make sure you put your body supplier in touch with your truck supplier so the body supplier makes the frame rail requirements clear.” hicle by getting everyone involved, i.e. body and chassis suppliers, application engineers and sales staff. Reinforcing a truck’s frame rails to haul body-mounted equipment like a picker, winch or tank is a good example, says Greg Robinson. “My recommendation would be to make sure you put your body supplier in touch with

30

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vOCAtIONAL trUCKS

vOCAtIONAL trUCKS

your truck supplier so the body supplier makes the frame rail requirements clear.”

The buyer has something to say about this, too, of course.

Western Star’s Silbernagel says dealers might not always agree with their customers on what’s needed, but the customer must still feel they’ve been heard.

“There are times a customer will give us a Kenworth spec… and we’ll say we can build you the exact same truck or build it the most effective way for that application, but we’ll definitely consult in the specing of that vehicle.”

Finally, don’t forget that vocational truck specs will vary so thatLooking what worksfor in one a area of the country will not work in another. “The sales person should be familiar with the local regulations and can act as a very low-cost and efficient source of information on these things,” says Dorwart. Salesperson, body supplier, engineer, buyer–make sure they’re all communicating, Go to www.on-sitemag.com says Robinson, and above all “get them communicating early.”

bulldozer?

oking for

quiptment? to www.on-sitemag.com

David godkin is a b.C.-based freelance writer. send comments to editor@on-sitemag.com.

Looking for a

dump truck?

Go to www.on-sitemag.com 32

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Onsite_

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the new Cat ® Ct660 Vocational truck is here to work, and we’re giving one away to prove it. Want to be the lucky winner?

Just get creative and tell us about the vocational application you work in and how owning a Ct660 will make you more successful. submit your video, essay or audio recording today—and start making plans to put the new Cat Ct660 to work on your job site.

SubmISSIONS accEpTEd: auGust 1 – september 30 ONlINE vOTINg: oCtober 1 – oCtober 15 WINNER aNNOuNcEd: noVember 1 Get complete contest details, submit your entry and cast your vote at drivecat.com

scan this Qr code and enter to win the new Cat truck. no purchase necessary. must be legal resident of 50 u.s. (+D.C.) or Canada (excluding Quebec), 25 years or older, with valid commercial drivers license. must use vocational truck at work. subject to full official rules, available at www.DriveCat.com.

Void where prohibited. prize consists of choice of one yellow Ct660 Dump truck or one yellow Ct660 heavy hauler. truck in photo for illustrative purposes only. hauled equipment not included. ©2011 Caterpillar | All Rights Reserved CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

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34

On-Site | Sept/Oct 2011

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SCRAPERS

NOT JUST SCRAPING BY

By Peter Kenter

T

SCRAPER MANUFACTURERS CONTINUE TO INNOVATE, FOCUSING THEIR OFFERINGS TO SUIT CUSTOMER DEMAND

he development of towed pan and motor scrapers is increasingly being driven by a construction market demanding larger load capacity, more economical operation and tougher construction. How those features are delivered has resulted in a wide variety of offerings, with manufacturers each targeting various market niches from infrastructure and roadbuilding, to the resource sector, to urban construction.

“Right now, after the recession, it’s about the lowest cost producer, hauling the most dirt at the lowest prices, whether we’re talking about motor scrapers, pull pans, articulated trucks or excavators,” says Kelly Goossen, sales manager at K-Tec Earthmovers Inc. in Rosenort, MB. The scraper manufacturing company was built with the construction market in mind by founder Ken Rempel on the premises of the family farm in which he grew up.

“In the beginning, the pull pan scrapers were considered just agricultural units to be used on the farm,” says Goossen. “Ken had that background, but for years also operated a construction company where he moved dirt throughout the Red River Valley.”

While Rempel had used scrapers, the units were heavy and had little capacity for flotation in wet conditions that could overwhelm the region. In this region, it often leaves contractors with little choice but to switch to rock trucks and excavators. He began to build pull pan scrapers for his own construction fleet after the 1997 flood. The venture proved so successful, that the company went into full-time scraper production in 2004.

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SCRAPERS

SMSPRT11_49

36

Western region

Scraper design has evolved over the years to accommodate new markets.

Photo: K-Tec Earthmovers Inc.

K-Tec concentrates on a market serving large projects, often involving a million cubic metres or more. The company’s 1254ADT is the world’s largest dirt scraper with a 54 cubic yard capacity, and K-TEC units are busy working such large infrastructure projects as the Calgary and Regina airports and large road contracts.

“We’re all dirt movers and we’ve all come from hands-on construction businesses,” notes Goossen. “We continue to go out to talk to the dealers and contractors, so we can understand what the market is asking for.”

The market information helps the manufacturer to adjust scraper designs as new markets are developed and the machines encounter new conditions.

“When we sell to a dealership, we have no idea exactly where the machines they sell will be used,” says Goossen. “When we found that our heavy duty 1233 model was being heavily used in gypsum mining under extreme conditions in Texas, we went out to the site to see whether the design could be tweaked to maximize their efficiency in that application. We made some adjustments to the scraper floor and now all of the 1233s are advertised for work in gypsum mines.”

The company continues to offer a range of scrapers as small as 9.5 feet across with a capacity of 25 cubic yards.

“With highway jobs you have room to maneuver the larger units,” says Goossen. “These smaller units are suitable for turning

around in more developed areas doing street cuts.”

For Ashland Industries of Ashland, Wisc., scrapers are being offered to suit the market, with heavier scrapers serving the northern states and Canada where soils are more bulky and clay-based.

In the south, lighter models scrape looser, more sandy soil.

“We adjust the depth of bowl and the width of the cut to suit the soil, for example,” says Ashland president, Randy Rust.

The company’s heavy-duty pull scraper line offers scrapers ranging from 9.5 cubic yards to 18.5 cubic yards. It has also launched its new 2.5 cubic yard unit, the Ground Hog 2500 Track loader scraper, designed for grading, stripping soil and backfilling curbs.

“As tractors become more powerful, we’ve seen as many as three scrapers hooked together on a train,” says Rust.

“We’ve always been capable of delivering rugged construction grade scrapers designed for bigger tractors. The most imporSMS Equipment holds a unique position in the industry as a tant thing for contractors to consider is a one-stop supplier of the most complete range of equipment. balanced approach to tractor and scraper We offer only world-renowned equipment that meets your combinations. Even if a tractor can pull the standards of reliability and productivity. With over 40 locations scraper train can you stop the machine in a to serve you across Canada, SMS Equipment is your local safe manner? Is the full capacity load you’re equipment and solutions provider. carrying going to keep the tractor under warranty? Can the scraper you’re pulling handle 600 hp or is this too much tractor for the scraper? These are the types of queseAstern tions construction operators need to ask.”

1.866.458.0101 region 1.800.881.9828 Mobile Track Solutions of Elkader, Iowa caters to the scraper market with a single www.smsequip.com large-capacity towed pan scraper, the MT-35.

On-Site | Sept/Oct 2011

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TOUGH ENOUGH

to handle the ups and downs.

Challenging jobsites don’t intimidate a Doosan® Moxy articulated dump truck. Its sloping rear frame, free-swinging rear tandem axle and independent front suspension ensure maximum ground contact, excellent weight distribution and solid footing for a big advantage in difficult terrain. Permanent six-wheel drive delivers outstanding traction to pull you through – so you can make full use of its huge load capacity. Every job has its ups and downs. Doosan Moxy keeps you productive no matter what.

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35-41_Scrappers.indd 37

11-10-07 1:16 PM

Photo: K-Tec Earthmovers Inc.

SCRAPERS

“OPERATORS WHOSE WHEELS ARE SINKING IN MUD OR SNOW APPRECIATE THE ABILITY TO INCREASE SCRAPER BOWL CLEARANCE TO PREVENT THEM FROM BOTTOMING OUT.”

“The customer voice has driven us away from the multiple towed pan scraper, to a single pan that can load 35 cubic yards of dirt,” says Justin Augustyn, Engineering Manager with MTS. “We’re being told that customers want the overall length of the scraper reduced because they want the flexibility to work in tighter and tighter jobs where the length of the machine hinders mobility.”

Augustyn says that a train of two or three scrapers requires a well-seasoned operator to negotiate effectively, while contractors are often constrained to using less experienced drivers who can safely operate the single pans.

Fewer pans also result in lower pan weight.

“Our scraper weighs 35,000 lb. empty,” says Augustyn. “Two single-pan scrapers with a capacity of 17.5 cubic yards each would weigh 25,000 lb. apiece. Lighter steel with high tensile strength, such as Hardox or Domex, help us maintain strength, while keeping the weight of the pan down.”

MTS engineers have also pushed the envelope on ground clearance, using a rear-lift mechanism that provides up to 25 in. of clearance.

“Operators whose wheels are sinking in mud or snow appreciate the ability to increase scraper bowl clearance to prevent them from bottoming out,” he says.

38

The wheel tractor scraper market continues to be dominated

by Caterpillar. However the demand for these scrapers is giving way to the use of more flexible articulated haulers, such as the Caterpillar 740 Ejector Articulated Truck, says Rick Van Exan, vice president, marketing at Toromont Industries Ltd., whose Toromont CAT subsidiary represents Caterpillar products in Ontario, Newfoundland and Labrador, Manitoba and Nunavut.

“It’s easy to demonstrate that for large earthmoving jobs, scrapers are the most cost-effective way to move material,” says Van Exan. “The question is whether there are enough of those jobs to support a large company scraper fleet in any one location.”

Van Exan notes the construction market for wheel tractor scrapers has always been greater in Western Canada, because more projects require the stripping of large quantities of overburden material over long hauls.

CAT announced three new wheel tractor scrapers in March.

The 621H, 623H and 627H models each offer increased power and capacity to lower cost-per-ton operation. CAT also continues to supply the pull scraper market with such models as the TS180 and TS220, with two rear wheels, and TS185 and TS225, with four rear wheels. Payloads for the models range from 18.8 to 23.5 cubic yards. The scrapers complement existing CAT hauling systems,

On-Site | Sept/Oct 2011

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SCRAPERS

including articulated and rigid frame trucks loaded by hydraulic excavators and wheel loaders, as well as wheel tractor scrapers and track-type tractors.

For Mega Corp of Albuquerque, NM it’s all about the elevator.

Its current offering, ready for launch, is the MES34-Mega Elevat-

ing Scraper. Built around the CAT 631G motor scraper, the model has a 34 cubic yard payload making it one of the largest elevator scrapers offered.

“The MES34 doubles for big construction jobs as well as mining applications where you want to haul out a lot of material,” says John Stubbs, manager, products upport at Mega Corp. “The unit breaks up the material as it goes up the elevator. Although it isn’t a finishing tool, it’s for anyone who doesn’t want to rehandle the material. It’s ideal for applications such as salt mines, chalk mines, aggregate mines and any land where you have a chunky surface that you don’t want to send through a crusher. ” The final frontier for K-TEC is increasing Innovative Software capacity not only through increased load Construction Industry capacity, but increased operational speed of the units. www.HCSS.com 800-683-3196 “We can build them larger for faster speed, but we need the hp to pull them,” says Goossen. “We’ve pulled them behind tractors and articulated dump trucks with up to 450 hp.”

Now that rigid frame trucks are starting at 450 hp and ramping up to 1,000, K-TEC is researching the more powerful engines.

“Just hooking the scrapers up to the rigid frame trucks has been a new experience,” says Goossen. “But we’re confident they have the capability of doing what we’re asking of them.”

Top Industry Leaders

Rely on HCSS Software Every Day:

20 22

Transportation Contractors

of the

25

Top

of the

Top

17

Heavy Civil Contractors

40

Estimating & Bidding Job Management

 

Safety Management GPS Solutions

 

Resource Management Equipment Maintenance

L

for the

ou? dn’t Y l u o h S

 

L



Fuel Tracking

T fu h th

L

Peter Kenter is a Toronto-based freelance writer. Send comments to editor@on-sitemag.com.

V

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3/24/11 1:12 PM 11-10-07 1:16 PM

COVER STORY / Financing

MAKE BIG BUCKS THIS WINTER Photo: Arctic Snow and Ice Control

BY RANDY STRAIT

W

e’ve all heard the old adage, “Don’t put all your eggs in one basket.” From a construction contractor’s perspective, relying solely on one client, one service or even one industry for work, is risky business.

Many Canadian contractors diversify their businesses by adding snowplowing to their service line up.

The chance for steady, year-round work, increased profit potential and employee retention makes snowplowing a lucrative opportunity in a snowy winter climate such as Canada’s.

While there are obvious advantages to diversifying, any new business venture requires careful consideration. It’s normal for a contractor to have concerns about diversifying into the snowplowing arena. After all, it’s uncharted territory for most. Weighing the pros and cons will show the decision can provide huge rewards for those willing to take the risk.

BIG BENEFITS One of the biggest hesitations to diversification is the intimidation

42

of entering something new. It requires one to leave their comfort zone to branch out into the unknown. While it’s understandable to want to simply stick with a well-established seasonal business, and one with which that contractor has a security level, the benefits of a year-round business simply can’t be ignored.

The biggest benefit of offering year-round services is increased profit potential. The construction season tends to slow down or even stop completely during the winter, leaving both the business and its equipment to sit idle and unprofitable. To get an idea of the profit potential of offering year-round service, think about the typical construction “off-season.”

The “off-season” is generally considered December through March, that’s a pretty sizeable chunk of time for a company to be sitting without work. By adding snowplowing services, a business can increase its profit and capital by up to approximately 33 per cent in a single fiscal year.

Chad Oberson is a shining example of a contractor who made a successful leap into the snow business a few years ago. His

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SNOW REMOVAL

Turn your idle construction equipment into a snow removal fleet in the off-season and earn up to one-third more profits this year company’s snow and ice business accounts for nearly 70 per cent of his total year’s profit. He identifies his company as a small one, yet states his typical profits from snowplowing are in the lower six-figure range. Additionally, he states that mid- to larger-sized companies and those in heavier snow areas, such as Canada, can expect to break into the seven-figure arena.

In addition to the equipment being under-utilized in the offseason, a company’s employees aren’t being used to their fullest potential either. When the construction season slows down, seasonal layoffs are common. Many companies lose good workers, as some may seek out new, year-round jobs and not return when construction kicks back into high gear. In addition, many laid-off employees don’t look for temporary jobs and instead collect employment insurance. This elevates the company’s employment insurance costs, adding major expense without steady work to offset that cost.

By offering the opportunity for year-round employment, a business minimizes the risk of losing quality employees and additional expenses. Better employee retention also cuts costs associated with hiring and training replacements. In fact, research shows that the turnover cost for one minimum wage worker averages more than $5,000. This number can add up quickly, especially for larger businesses with dozens, even hundreds of seasonal employees.

But more than just wasted money, the sustenance aspect diversified companies have over those who offer only seasonal service is significant. Consider what happens when the construction industry takes a hit; work slows down, layoffs occur and revenue dips. Having another avenue to create revenue can even out those dips and aid in rough economic times.

Furthermore, there’s the consistency aspect of snowplowing.

When snow falls, it needs to be cleared. It’s not up for discussion, argument or interpretation. Snow simply must be cleared to keep roads and businesses open, and prevent dangerous, slippery conditions. Even though every year may not be a record-setting one, the bottom line is snowplowing services will always be in demand.

A final benefit to year-round services is the opportunity to build better relationships with customers. By offering multiple services, a business can become a “one-stop shop”—a “place to go” for multiple needs. The new, planned supermarket in town needs to have its parking lot poured, but also have that lot plowed every year thereafter. A diversified construction company can demonstrate the convenience of working with a full-service company by touting the fact it can both pour the concrete and later clear the snow.

After seeing the initial potential that a year-round business can offer, many skeptics may take a closer look at snowplowing. The

next aspect to consider is one that requires due diligence and even a little bit of research—equipment investment.

Efficient Equipment Successfully entering the snow removal business requires securing the right equipment. These initial costs are often intimidating to contractors with limited capital. But the investment may not be as significant as one might think, and smart decisions lead to fast monetary return.

One of the biggest upfront costs for a snowplowing operation is the equipment needed to push the snow. This includes both the actual snow pushers and the machines driving the operation.

However, a contractor’s existing machines such as loaders and skid steers can all be repurposed for snow removal, rather than being left idle for the winter season, leaving the pusher as the only major piece of equipment to acquire.

To select the proper snow pusher, a contractor must first analyze the existing fleet. Certainly size will be the first consideration, as each model of pusher is meant for a particular size of equipment—meaning one designed for a large loader wouldn’t work on a small skid steer. Local dealers provide great assistance to contractors looking to purchase the right pusher for his or her equipment. Snow pushers come in a variety of sizes, with the smallest measuring 8 ft. to larger units extending well over 20 ft. Pairing existing equipment with the right pusher will result in cost savings and increased productivity. For example, a small skid steer could be outfitted with an 8-ft. snow pusher and be ready for use. Those with larger equipment in their fleet would want to look at snow pushers in the 16 to 20 ft. range.

No matter how big or small the pusher, it’s important to purchase one with the greatest potential for return on investment.

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11-10-13 11:25 AM

SNOW REMOVAL According to Oberson, a high-quality snow pusher will typically pay for itself in the first 30 in. of snowfall—a relatively quick return, considering most areas of Canada average this amount in the first few months of the winter season.

When it comes to choosing a highquality pusher, remember: All are not created equal. Many are designed to increase efficiency, cut back on salt usage and reduce potential property damage.

A pusher featuring a sectional moldboard design moves more snow with each pass, and greatly cuts down on plowing and follow up re-plowing time.

Each section moves up and down independently, enabling the plow to essentially contour to uneven surfaces and remove snow from dips and depressions in pavement.

Because they’re able to remove more snow and ice with one pass, less salt is required. Additionally, take a look at the unit’s cutting edge. Rubber and steel trip edges are most common options, with steel cutting edges typically being the best option. Steel edges scrape snow and ice down to the pavement and offer cleaner removal with a single pass, further reducing salt needs.

Also worth considering is a pusher with mechanical side panels. Unlike rigid, fixed-side panels, mechanical panels are designed to rotate up and over obstructions such as curbs and medians. While this saves greatly on potential damage to the plow, the real benefit comes in preventing expensive damage to the client’s property. Snowplow companies spend tens of thousands of dollars each year repairing expensive curbing and other such features commonly found in parking lots and on streets.

Some of the more modern and advanced pushers may also feature newer hitch designs, providing ease of operation and enhanced results. A snow pusher is picked up and set down hundreds of times during a snow event. Typical hitch designs force the operator to manually adjust the plow each time it’s dropped, making for a very challenging, time-consuming and often frustrating process, especially for inexperienced operators new to the plowing game.

Newer “drop-and-go” hitch designs do this automatically, saving precious time and ensuring a properly placed pusher every time.

In addition to the primary piece of equipment, the pusher, several other pieces of secondary equipment should be considered.

Items such as sand and salt spreaders, liquid anti-icing applicators, or snow brooms may be required, depending on the extent of services offered by each individual company. The same principles apply—taking the time to research features and benefits, and make an informed equipment selection is well worth the effort and will pay back dividends.

Pricing Potential With the decision to diversify made and the equipment pur-

44

chased, only one big question remains: How to price this new service?

Understandably, this is the most critical element in successfully entering the snow removal arena. Without a proper pricing strategy, even with steady work, a company won’t be successful.

It’s worth noting upfront that with any pricing strategy, the determining factor in profitability is the weather—which unfortunately, can’t be predicted. Contractors may have an idea of how much snow could fall that winter, but it’s impossible to know the actual amount. So a certain level of risk versus reward will be factored into any pricing strategy.

There are three basic pricing options and it’s up to each individual contractor to decide what’s best for his or her operation.

Hourly Rate — The tactic for the hourly rate pricing strategy is

the most straightforward and easily understood of the three. An hourly rate agreement means the snowplow company charges customers an hourly rate, based on the time and materials necessary to get the job done.

The advantage to charging an hourly rate is it involves less risk; the company gets paid for the work completed—no more and no less. In addition to leaving less room for big profit potential, the disadvantage with this strategy is no real value is placed on contractor efficiency. The company may end up paying more to hourly workers who are, consciously or sub-consciously, dragging out the process in the attempt to take more time and charge the client more. This can inhibit profits by limiting the number of contracts the company can take and also hamper their reputation by appearing slow and unethical.

Per Push Pricing — A customer agreeing to a per-push pricing

strategy means they will be charged every time the snowplow company visits their location. The way this differs from an hourly rate lies mainly in the establishment of a trigger depth. The trigger depth is the decided-upon amount of snow that must be on the pavement before the contractor comes out to plow. Throughout

On-Site | Sept/Oct 2011

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11-10-11 2:34 PM

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SNOW REMOVAL the season, every time the snowfall reaches the trigger depth, the plows are sent out to clear the lot and the customer is charged.

The advantage to per push pricing is the guarantee of payment for the work done on each visit. If it’s a heavy snow season, the money made will be significant. This approach also rewards efficiency because per push cost is based on an expected hourly calculation. If the crew finishes the job faster, the whole company wins. The drawback is the risk taken on the part of the contractor.

What if it’s a light snow season? The plows won’t go out as often, eliminating the opportunity for work and dollars earned.

Seasonal Contract — A seasonal contract is based on one flat rate of providing snowplowing services for an entire winter season. The advantage of this contract is the guarantee of set payment throughout the winter, regardless of snowfall. If there’s only one blizzard the entire season, the contractor is still paid the full amount for that season. However, if it’s a heavy snow year, the outcome won’t be as profitable, as more work than originally anticipated will be required on the part of the contractor. As mentioned previously, the amount of snowfall or trigger depth will be the deciding factor on when to dispatch the plows.

It’s important to note there are two subcategories in regards to the seasonal contract option: with or without a cap. The scenario detailed above would be a seasonal contract without a cap. In this case, whether it snows 10 inches or 100 inches, the amount paid by the client is fixed. However, with a cap in place (for example, a 40-inch cap) the amount paid would abide by the contract price up to 40 inches. Anything after 40 inches would be billed at an agreed-upon per push or hourly rate.

When supplying a service, it’s advantageous to be flexible when it comes to pricing. A company’s pricing strategy may be different for each client, as the rate should be tailored to his or her needs and comfort level. One may prefer to charge an hourly rate, but if the client prefers a contract, or “per push” structure, flexibility and accommodation will be beneficial for all parties involved.

Ultimately, the decision to diversify a business by adding snowplowPerformance you ing services is up to each individual can trust contractor. However, armed with a full understanding of the benefits and everywhere, risks involved, contractors can take the every time. leap into the snowplowing arena, and ensure their businesses aren’t left out in the cold this winter.

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46

Randy Strait is president and owner of Arctic Snow & Ice Control. Send comments to editor@on-sitemag.com.

On-Site | Sept/Oct 2011

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11-10-11 2:34 PM

THE WAY CAM WORKS:

KEEP THE THIRST TO BUILD, CREATE AND MAKE.

CAM MARSHALL President and CEO, Global Flow Inc.

BUSINESS BANKING IS ABOUT A SHARED PERSPECTIVE. At Canadian Western Bank, we see the world the same way as our customers.

As a result, we take the time to understand your industry and provide banking solutions suited to your business needs. Discover insights and learn more at theworkingbank.ca.

42-47_Snow.indd 47

11-10-11 2:34 PM

SOFTWARE

By Jacob Stoller

Construction and the cloud Cloud computing is poised to give construction companies unprecedented flexibility in the way they use technology. The transition, however, will take time.

C

loud computing is one of those multi-faceted IT buzzwords that drives people crazy. What with public and private clouds, co-location, hosted infrastructure and Software as a Service (SaaS), it’s hard to understand what “the cloud” actually is.

The underlying idea, however—that the user is in one location and the computing takes place somewhere else—is all most people need to know. As any IT veteran will tell you, the idea is nothing new—in the 60s and 70s, users worked from terminals linked via telecommunications lines to remote mainframes, typically hosted in huge data centres by IBM. The “cloud” was actually a schematic symbol for telecommunications infrastructure.

The difference today is the internet, the universal browser interface, and a technology called virtualization. The latter has opened up the field by making it easier for vendors to offer any aspect of a computing environment—cpu capacity, disk space, complete operating environments, a fully functional application—as a utility.

Construction companies can expect to see a rapidly growing selection of cloud-based offerings. The immediate appeal is that there’s no need to acquire and maintain IT infrastructure. “It gives flexibility to companies that don’t want to put out capital expenditures on IT,” says Joe Jagodich, CIO of Torontobased construction firm Ellis-Don. Cloud computing is not necessarily cheaper, however. “Our data indicates that there’s not a lot of cost advantage there,” explains George Goodall, senior analyst for London, Ont.-based Info-Tech Research. “It doesn’t necessarily change the need to train users or customize code. But it does bring that degree of flexibility.”

That flexibility, may be essential. “Companies have to be quicker to adapt to changing market conditions,” says Henrik Gutle, ERP Lead, Microsoft Canada. “This is something that has hit the construction industry hard over the last couple years.”

Cloud computing provides the needed agility on a number of fronts. For one, it allows contractors to use computing on an as-needed basis, and to scale their spend based on their contract workload. Furthermore, it allows firms to cost out their usage to different jobs and/or departments. “It allows firms to use IT like a utility,” explains Jagodich.

Flexibility of access is another factor—thanks to standard web browser interface, cloud solutions can usually be accessed by any

48

portable device. “Construction sites are often the worst place in the world to get information. Connections are tenuous, or people don’t have access to the right device,” says Goodall. “So portability and accessibility are really huge—everybody has a smart phone.”

Cloud applications also shine in collaborative environments where access rights are critical. For example, if a specialty contractor makes a system available to clients, partners will want to see their own jobs, but they’ll want to be sure that their competitors don’t. Cloud providers have sophisticated, multi-tiered authentication systems that provide this kind of assurance.

The removal of the capital investment barrier that the cloud provides also gives smaller firms access to applications they couldn’t otherwise afford. A key one is Building Information Modeling (BIM), which generates mountains of data, and requires significant resources to store and transmit it.

New Applications On the vendor side, cloud computing is everything but simple, and will take years for many applications to become available.

“When you look at specialized applications for specialized industries, these things are pretty complicated,” says Goodall. “People are taking these applications and moving them into the cloud, but there are many preliminary steps to get there.”

These steps will include a number of decisions about platforms, partnerships and facilities, and the applications themselves will have to be re-designed to suit the access and performance issues that the cloud entails.

Calgary-based HomeFront Software has begun the process in selected areas. “The main thing we’re trying to accomplish is ease of use,” says Jakob Tornqvist, VP of Professional Services.

The company also sees remote users as a priority. “The cloud is very suitable for field operations,” says Tornqvist. “We see a lot of people out in satellite offices, or out in the field doing work order completion, or service completion.“ Some areas may be less suitable. As Tornqvist points out, cloud applications don’t respond as quickly as their local equivalents, and that will deter some from making the switch.

Fortunately, cloud computing is not an “all or nothing” proposition—it’s easy for vendors to provide offerings on an à la carte basis, and hybrid cloud and local environments will likely become the norm.

Jacob Stoller is a principal of Toronto-based consultancy Stoller Strategies. To comment on this column, contact editor@on-sitemag.com.

On-Site | Sept/Oct 2011

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October 2011

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11-10-07 12:20 PM

RISK

By David Bowcott

Four strategic construction trends that CAN’T be ignored I

f ever there were a perfect time to hold a strategic retreat with your top management and top advisors, it is now! The decisions you make with respect to your company’s future direction have never been more important. Will you look back in 10 years and say “I saw this coming” or will you be one of the unfortunate companies scratching their heads saying “What the hell happened?” Seldom does an industry face this level of change and seldom has this level of change happened to what we all thought was a mature well established industry. Sound exciting? Well it should—construction owners of the next century need new and innovative ways to develop and manage their assets, and companies around the world are positioning themselves to be that “all-in-one” provider of asset management services.

There are more than four, but if you were to distil the trends into major categories, the following would likely encompass the majority of trends to pay attention to in our industry: Asset Management: Asset management represents a new way for owners of valuable property to procure and operate it in a way that ensures minimal deviation from the business plan. Every asset has an ideal financial model that represents the best-case scenario of how it will benefit the owner. The asset management movement uses “skin in the game” to ensure the risks faced in all aspects of an asset’s life are managed by those best able to take on this responsibility, thus ensuring there is a greater chance the asset will perform well.

For example, if a pharmaceutical manufacturer were to build a new plant and take responsibility for procuring its design and operating it once construction had been completed, is that the best allocation of responsibility? Probably not! The pharmaceutical company is an expert at developing, marketing and manufacturing drugs, but are they an expert in constructing and even operating the facility in which they manufacture the drugs? Not likely.

Under asset management the owner of the plant asks themselves this question, and if there’s any doubt, they turn to delivery models that better allocates responsibility for all the asset’s life to a party better able to manage each phase. Without a doubt, there are some owners of assets that do have the expertise to develop and operate their assets, however, if there were a company that had more experience designing, building and operating assets then they did, would it not be prudent to take advantage of that?

Asset management is a growing trend in the public sector, and one of the easiest ways to implement this model is through a public private partnership (P3s) that transfers most lifecycle risks to the private sector (ie. Design-Build-Finance-Operate and

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Maintain models—DBFOM). This trend is growing beyond the Provincial governments and is moving into municipalities and further the private sector is looking at ways to use asset management to create better return from their assets.

Project Finance: As noted above, asset management can also transfer finance risk to the private sector, whereby concessionaires not only take on the risk of design, construction and operations, but they take on the risk of forming most/all of the capital required to create the asset. This means finding equity to invest in the asset’s development and, often more difficult, finding sources of debt that will lend for what is often long terms (ie., 30 years). This has resulted in a greater dialogue between contractors and debt, which has in turn led to a greater understanding of construction risk by the lending community. Contractors are playing a vital role in debt formation as they aid in the negotiations with debt, providing comfort in how concerning construction risks are being managed.

Once again, who better to negotiate the terms of project finance then those that have the most experience managing project risk.

Quality Construction: As greater emphasis is being placed on the performance of assets over a long period of time, owners of assets are gravitating towards contractors that provide not only the lowest price, but the greatest certainty of on-time, on-budget and as per warranty construction. The asset management movement is effectively a flight to better quality asset development, and as such those contractors with the tools and practices to best integrate design, labour and material for quality cost competitive construction are being brought to the front of the line when it comes to selection of contractors.

Globalization of Construction: The combination of a mass number of succession plans being enacted throughout the Canadian construction industry and the global players converging on Canada through the pipeline created the asset management model, that has led to increased merger and acquisition activity. As long as the pipeline remains significant this activity is not likely to stop.

Each of the above represents game-changing trends that your company needs to develop a plan for. There will always be a traditional project delivery model, however, to ignore the above trends would be a perilous decision. That strategic retreat can’t happen soon enough as the opportunities (and pitfalls) are too great.

David Bowcott is senior vice-president, national director of large/strategic accounts, AON Reed Stenhouse Inc. Send comments to editor@on-sitemag.com.

On-Site | Sept/Oct 2011

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ADVERTISERS’ INDEX & WEBSITES ACKLANDS GRAINGER .............................www.acklandsgrainger.com ...........9

MACK CANADA..................................................www.mackcanada.com .........31

ADRIAN STEEL ......................................................www.adriansteel.com .........30

MERCEDES BENZ................... www.mercedes-benz.ca/sprintersaves .........55

BDO CANADA ........................................................................ www.bdo.ca .........10

MICHELIN .......................................................................www.michelin.ca .........39

CANADIAN WESTERN BANK ....................... www.theworkingbank.ca .........47

NEW HOLLAND ....................................................www.newholland.com .........45

CASE...............................................................................www.casece.com ...........7

NISSAN.......................................................................www.ncv.nissan.ca .........19

CATERPILLAR........www.CatAllDay.com/loaders, www.DriveCat.com ...15, 33

SMS EQUIPMENT ....................................................www.smsequip.com .........36

DETROIT DIESEL................................................. www.detroitdiesel.com ...........4

STRONGCO.................................................................www.strongco.com .........41

DOOSAN .........................................www.DoosanEquipment.com/tough .........37

TEREX .......................................................... www.terexrealitycheck.com .........27

FREIGHTLINER .......................................... www.FreightlinerTrucks.com ...........2

TOPCON ......................................................................... www.topcon.com .........53

HCSS .................................................................................. www.hcss.com .........40

VIEWPOINT CONSTRUCTION SOFTWARE ..... www.viewpointcs.com .........32

HUSQVARNA ..................................................... www.husqvarnacp.com ...21, 46

WAJAX ............................................................................... www.wajax.ca .........34

INTERNATIONAL TRUCKS .....................www.internationaltrucks.com .........25

WEBER MT .................................................................... www.webermt.us .........28

JOHN DEERE ......................................... www.JohnDeere.com/YoureOn .........56

WESTERN STAR ..............................................www.onetoughtruck.com .........29

KUBOTA UV .......................................................................www.kubota.ca .........13

WESTERN SURETY ............................................ www.westernsurety.ca .........11

THE ADVERTISERS’ INDEX IS PROVIDED AS A FREE SERVICE TO OUR ADVERTISERS.

Now you can follow On-Site on Twitter @OnSiteMag to get the latest industry news, reports and links pertaining to Canada’s construction market.

GET MORENE NEWS ON-LSIITE WITH ON Sept/Oct 2011 | On-Site

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CALENDAR

FUNNY PHOTO SEND YOUR FUNNY PHOTO CAPTIONS to us and if we think you’re the funniest, you will be the winner of a limited-edition die-cast model of a Mack Truck.

DEADLINE FOR ENTRIES IS November 16, 2011

SEND YOUR ENTRY TO: snail mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 fax: (416) 510-5140 e-mail: editor@on-sitemag.com

Funny photo winner to haul home truck You could win a fully detailed, die-cast model of a Mack truck for your winning Funny Photo entry!

The model has numerous moving parts, accessories and authentic graphics.

(Comparable alternative model may be awarded.)

ER WINN “HEY! Who turned out the lights?”

THIS MONTH’s winner is: Mark Spencer, Calgary, AB

Got a Funny Photo? Send it in so our readers can exercise their senses of humour!

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October 25 Flood Restoration—What Facilities People Should Know Western Otonabee Inn, Peterborough, ON This complimentary breakfast session provides an overview of the following: Update on regulations and guidelines, general liabilities and due diligence responses to water damage and mould growth; review of the categories of water damage; what needs to be completed during a flood assessment; and the remediation monitoring and documentation process. www.pinchin.com November 22 and 23 Managing Risk in Construction Contracts Crowne Plaza Chateau Lacombe, Edmonton.

With the upswing in the economy in Western Canada, construction projects are on the rise again—but in a more careful and measured way. Attend this critical event to equip yourself with the most effective tools for planning, negotiating and contract drafting, to avoid costly litigation, delays. www.canadianinstitute.com/contracts November 30 to December 1 National GreenBuilding Conference Metro Toronto Convention Centre, Toronto This event will focus on all aspects of green design, construction, retrofit and maintenance leading to high-performance buildings, and will examine best practices and project delivery models that result in more efficient methods of designing sustainability into any project. www.nationalgreenbuildingexpo.com November 30 to December 2: Construct Canada Metro Toronto Convention Centre, Toronto Construct Canada is Canada’s largest construction exposition and conference, which brings together influential buyers and decision-makers from the building, construction and design industry and delivers all the resources, educational tools and opportunities needed to keep a competitive. www.constructcanada.com November 30 to December 2: Concrete Canada Metro Toronto Convention Centre, Toronto Concrete Canada is the industry’s most important event for concrete and masonry construction professionals. It delivers all the products, resources, and educational tools needed to strengthen your entire operation. www.concretecanadaexpo.com

On-Site | Sept/Oct 2011

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11-10-07 8/8/11 5:01 2:08 PM PM

CONTRACTORS & THE LAW

By Chris Eagles and Grant Mayovsky

Utility relocation risks L

arge infrastructure projects almost inevitably require signifi- contractor’s work. The court attributed the majority of this fault to cant involvement from utility suppliers in the management the owner, and more specifically to the owner’s refusal to extend and relocation of overhead and underground utilities. Because the the time for completion despite the issues arising on the project. utility supplier’s contract is generally with the owner, and because As a result, the owner was required to pay the contractor for the the utility supplier is generally not a party to the construction con- significant cost increases on the project. This ruling demonstrates tract, it’s often difficult for a contractor to ensure the utility relocation the importance of reasonable accommodation when utility probwork proceeds on schedule. The question that arises as a result, lems occur. A party’s unwillingness to adapt to utility issues may is: who should be responsible for costs attributable to the delay in result in the unreasonable party being forced to absorb the costs construction caused by utility relocation? associated with delay.

The determination of who is responsible will largely be deA key issue for both owners and contractors to consider, when pendent upon the allocation of risks and responsibilities in the dealing with projects involving utility relocation requirements, is construction contract. However, that delay is a risk and specifying the reasonableness of the parties who will bear the risk for the time when it comes to dealing with deand costs associated with such “A party’s unwillingness to adapt to utility lays as they arise, may also impact delays in the contract is the most issues may result in the unreasonable the outcome. Where the contraclikely way to avoid disputes. Acparty being forced to absorb the costs tual allocation of risk and responcordingly, consideration should be associated with delay.” sibility is open to interpretation, a given to the following issues prior party who acts reasonably in the to signing the contract: circumstances may be more likely a. the extent to which the project schedule will be dependent on to have the contract interpreted in their favour by the courts. utility relocations; In Progressive Contracting (Valley) Ltd. vs. Mrsic, the owner was responsible for acquiring utility drawings in order for the b. which party will deal with the utilities to coordinate relocation work; contractor to complete work on the subdivision of a property. The utility would not release the drawings until they were paid by the c. whether there is an agreement in place with the utilities regarding the timing of any relocations and cost; owner, who delayed in making those payments for a significant period, resulting in the completion of the project being delayed. d. will the required relocations be like for like; The court found the delay was the fault of the owner because it was e. which party bears the cost of the relocation works, including design, structures and transmission system work; the owner’s contractual responsibility to ensure the drawings were f. which party bears the risk of utility relocation delays and in provided on time and to pay for the drawings. particular whether the contract entitles the contractor to an Utility issues also resulted in a number of claims in connection extension of time, additional compensation or both; and with the construction of the original Skytrain line in Vancouver. In the case of W.A. Stephenson Construction (Western) Ltd. vs. Metro g. whether each of the above is clearly reflected in the contract terms and has been taken into account in the party’s assessCanada Ltd., the owner had promised in the contract documents ment of risk, price and schedule. to provide a clear work space in which the contractor could operate. However, many power lines were not removed by the utility Ensuring these concerns are dealt with in advance will greatly in time for the contractor to enact the original plan on which it had based its costs and schedule. The owner refused to adjust the reduce the chances of a dispute arising if utility-based delays timelines for construction, and as a result, the contractor had to occur. incur significant extra costs to operate around the obstructions.

The owner then refused to pay for those additional costs. The court found that there was significant obstruction from utilities, This column is provided for general information only and both overhead and underground, and that it, along with other is- may not be relied upon as legal advice. Send comments to sues, significantly affected the planning, execution and cost of the editor@on-sitemag.com.

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On-Site | Sept/Oct 2011

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T:7.875” S:7”

S:10”

Sure, you’d expect a Mercedes-Benz to be an expensive acquisition. But the truth is with its amazing fuel efficiency – via our BlueTEC diesel engine – and 15,000 kilometer maintenance intervals, the 2011 Sprinter will cost you less to own over 5 years compared to the competition. In fact, up to $6,4001 less – which is money better spent on your business. How’s that for a Mercedes?

The 2011 Mercedes-Benz Sprinter. Starting from $42,900.* mercedes-benz.ca/sprintersaves ©2011 Mercedes-Benz Canada Inc. *Base national MSRP $42,900, all-in pricing up to $46,516.25 dependent on region. National MSRP pricing is shown for informational purposes only. Price does not include taxes, levies, fees and delivery charges. Price does not apply in provinces with total pricing requirements. Please contact your local dealership directly for total price applicable in those provinces.

Price subject to change. Dealer may sell for less. 1Based on analysis of Canadian market for 2500 and 3500 series vans performed in March 2011 by Vincentric LLC. $6,400 savings claim based on comparison of 2011 GMC Savana Cargo 2500 and 2011 Mercedes-Benz Sprinter 2500 144" WB. Average savings across all models analyzed is $6,900. Visit mercedes-benz.ca/sprintersaves for more details.

Sept/Oct 2011 | On-Site

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T:10.75”

With a Sprinter you’ll save up to $6,400 over 5 years. That’s a lot of lumber.

On-Site

10.01.11

THEY’RE MEN OF FEW WORDS. SO WE VALUE EACH AND EVERY ONE.

Mark Pivetta, Dave DeYoung, and John Gleim. Not exactly the kind of guys who’ll talk your ear off. But they will, however, tell you exactly where they stand — especially when it comes to productivity. Which is why we couldn’t have been more grateful that these contractors (and many more) volunteered so much of their own time to help us design Deere excavators. And why we hung on every word they had to say. From an Interim Tier 4-certied engine that actually helps increase productivity, to a cab with unmatched comfort and visibility, the new G-Series Excavators prove that when it comes to innovation, talk is priceless.

Learn more from your John Deere dealer or our website.

YOU’RE ON.

TM

www.JohnDeere.com/YoureOn

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11-10-07 1:20 PM AD35285