DECEMBER 2016
> IN SIDE <
CONC RE T E ON-S IT E PG . 37
PICKUP TRUCKS
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VOLUME 61, NO.7 / DECEMBER 2016
COVER STORY 18 2017 Construction Forecast The crystal ball for Canadian construction next year was already cloudy before Donald Trump was elected the 45th president of the United States. Contributing editor Jim Barnes asks industry experts what we can expect for the new year.
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DEPARTMENTS 7 Comment The Trump Effect
10 News Industry news
28
16 Construction Stats The latest news on construction activity and employment
COLUMNS 54 Software Software for safer workplaces
56 Risk Is Canada becoming the world’s most advanced asset management economy?
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58 Contractors and the Law Ledcor Construction vs. Northbridge Indemnity Insurance Co.
IN THIS ISSUE 37 Concrete On-Site
51
Index of Advertisers
features 28 Pickup Trucks Report Several pickup truck models undergo everything from a mild refresh to a complete makeover for 2017.
40
48
The latest concrete anchoring products are designed to save contractors time, money and clean-up.
A sneak peek at some of the new products you can expect to see on the show floor in Las Vegas.
What’s New in Concrete Anchoring?
World of Concrete Product Preview
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COMMENT
The Trump Effect
T
he morning after Donald Trump was elected 45th president of the United States, my 10-year-old son, Ben, staggered sleepily out of his room with a concerned look on his face. He wanted to know if this meant there was going to be WWIII? My husband and I, did our best to put his mind at ease, but his concerns reminded me that we’re all curious to know: How or will this affect me? And, on a larger scale: How will this affect Canada’s construction sector? With that in mind, and the fact that this is our annual forecast issue, I went in search of answers. Here are five of the key ways that the Trump government could impact Canadian construction in the years to come:
1. RENEGOTIATING TRADE DEALS
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The president elect campaigned on a pledge to force Mexico and Canada to renegotiate the North American Free Trade Agreement, with the intention of providing greater benefits to U.S. businesses. If the countries don’t agree on a new deal, Trump has made it clear that the U.S. will leave NAFTA completely. With approximately $51 billion in goods crossing the Canada-U.S. border per month, this could have the greatest impact on contractors. It would affect everything from services, to construction materials and equipment. His policies around trade could create a short-term benefit, though. As manufacturing jobs in the U.S. could grow, thus manufacturing construction would grow as well.
2. BRAIN POACHING POTENTIAL Even before the election results were conclusive, the number of Americans searching for jobs in Canada had increased a staggering 58 per cent, according to the jobs-posting platform Monster Worldwide. With an impending skills shortage being the greatest challenge facing our industry, it seems now might be the time to start recruiting
civil engineers, equipment operators and young leaders south of the boarder.
3. IS THERE CASH IN THE PIPELINE? Throughout his election campaign, Trump said several times that he’s in favour of the Keystone XL pipeline from Alberta. Reviving this project may create much-needed jobs in Alberta. That being said, Trump also made it clear if the pipeline were to go ahead, he would only approve it if the U.S. gets a big piece of the deal.
4. INFRASTRUCTURE Considering the first policy promotion out of his mouth (in his acceptance speech) was about infrastructure, that bodes well for construction activity in the U.S. Trump’s long-term plan to boost the U.S. economy – creating 25 million jobs and spurring growth through tax cuts and infrastructure spending – could help boost Canada’s economic fortunes, too.
5. ENVIRONMENT Trump’s short-term mindset on the environment will likely hurt the U.S. (and the world) in the long term. As I told Ben, you can’t believe everything you hear in the schoolyard, only time will tell if these campaign promises become a reality. Aside from the ridiculous notion of ignoring global warming, Trump’s agenda isn’t entirely bad news for Canada’s construction sector. No matter which side of the debate you are on, there are certainly interesting days ahead in 2017. With that in mind, I wish you all a wonderful holiday season and all the best for a prosperous New Year. Corinne Lynds / Editor CLynds@on-sitemag.com
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CONTRIBUTORS
MEET OUR CONTRIBUTORS FOR THIS ISSUE
PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com
JIM BARNES / Contributing Editor, On-Site
EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com
On the 2017 construction forecast: The crystal ball for Canadian construction next year was already cloudy before Donald Trump was elected the 45th president of the United States. That one event has thrown a lot of forecasts into the trash bin.
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CONTRIBUTING EDITOR | James A. Barnes MEDIA DESIGNER | Lisa Zambri lzambri@annexbizmedia.com
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ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com
DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On asset management economy: No matter where I go these days it seems like every economy, both governments and corporations, are toying with new ways to design, build and operate their physical assets. The over-arching trend behind this long-term capital concept is asset management.
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ACCOUNT COORDINATOR | Cheryl Fisher (416) 510-5194 CFisher@annexbizmedia.com CIRCULATION MANAGER | Urszula Grzyb 416-442-5600 x3537 ugrzyb@annexbizmedia.com Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com President & CEO Mike Fredericks
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On what’s new in concrete anchoring: The next few months will see new concrete anchoring product releases and new U.S. regulations about using such products. Power tool companies that sell concrete anchoring solutions will be displaying their wares at World of Concrete.
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JACOB STOLLER / Principal, StollerStrategies On software for safer workplaces: One of the most ubiquitous requirements for contractors in all sectors of the industry is fulfilling their duty to keep workers safe. The issues are widely publicized, and training resources and safety tools are readily available. Maintaining a comprehensive safety program, however, can be an administrative nightmare.
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ALEXANDER BJORNSON / Borden Ladner Gerbais LLP On Ledcor vs. Northbridge: Builders’ Risk (or Course of Construction) insurance policies are commonplace on construction projects. Although they provide coverage for physical loss or damage to ongoing construction works, these policies typically include a “defects” exclusion for faulty or defective workmanship, materials or design.
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SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@on-sitemag.com
Established in 1957, On-Site is published by Annex Business Media 80 Valleybrook Drive, North York, ON M3B 2S9
NATE HENDLEY / Freelance Writer & Author
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www.on-sitemag.com / Fax: 416-510-5140
ISSN: 1910-118X Printed in Canada Circulation email: apotal@annexbizmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 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. Occasionally, On-Site will mail information on behalf of industryrelated groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer privacy@annexbizmedia.com Tel: 800-668-2374 Content copyright ©2016 by Annex Publishing & Printing Inc may not be reprinted without permission. 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.
We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.
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8 / DECEMBER 2016
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INDUSTRY NEWS
INDUSTRY>NEWS Ledcor uses modern technology to preserve heritage building The Ledcor Group of Companies celebrated the grand opening of Enbridge Centre last month, the first office tower to be constructed in downtown Edmonton’s Financial District in more than 20 years. Ledcor applied several specialized construction methods in order to bring the newest technologies to the building, while preserving the heritage façade. “Our client’s vision was to preserve the heritage façades while bringing in modern and sustainable elements to the building,” said Peter Hrdlitschka, president, Ledcor Construction Canada. “Our project team
and trades excelled at bringing together these components in a way that really reflects how vibrant Edmonton’s business community has become over the last two decades.” New construction technologies, such as Building Information Modeling (BIM) were used to recreate and restore the heritage façades on the existing Kelly and Ramsey buildings that were badly damaged by fire in 2009. The use of an un-bonded posttensioned system was crucial to build more efficient floor slabs, which enhances the
overall performance of the building. By using less concrete and reinforced steel, this system provides superior structural integrity and allowed for a fast-tracked construction schedule. Enbridge Centre is targeting LEED Gold certification for core and shell. Earning this certification would place it among an elite group of highly sustainable buildings in Edmonton.
EllisDon presented with Canada’s Safest Employer Award Last month, EllisDon was presented with Canada’s Safest Employer Award at the Safest Employer Gala at Arcadian Court in Toronto. The Award is presented by Canadian Occupational Safety in partnership with Workplace Safety and Prevention Services and encompasses 10 industry-specific categories. EllisDon was the Gold recipient in the Building and Construction category. The gala brings together the entire safety community and provides an opportunity to network and discover best practices that are changing workplaces across Canada and fostering a culture of safety. “It is an honour to have our Health and Safety execution and expertise recognized through this prestigious award. Safety is woven into every aspect of our business,” said Kari Harris, VP, occupational health and safety. Launched in 2011, Canada’s Safest Employer Award recognizes companies across Canada for their outstanding accomplishments in promoting health and safety for their workers. The award boasts 10 industry specific categories and companies are judged based on a wide range of health and safety elements, including employee training, OHS management systems, incident investigation, emergency preparedness, and innovated health and safety initiatives.
EllisDon presented with Canada’s Safest Employer Award.
EllisDon actively participates in several industry based safety committees providing staff, subcontractors, and owners, with the resources to achieve maximum performance. Maintaining standards that exceed government and industry requirements, EllisDon has held an unsurpassed safety record earning a number of recognitions and awards.
10 / DECEMBER 2016
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INDUSTRY NEWS
B.C. Construction Association reports healthy workforce trends The B.C. Construction Association (BCCA) is reporting better than expected results for B.C.’s skilled workforce, in key figures released for the province’s industrial, commercial, and institutional construction sector. One of the biggest gains comes in the ratio of B.C. high school graduates entering construction trades training programs within one year of graduation. When the BCCA first began calculating this number in 2013 it estimated that 1/93 students went from Grade 12 into trades training. In 2016 that number has improved by 35 per cent to 1/69. “Our youth are getting the message that the trades can be a very rewarding and lucrative career path,” observes Manley McLachlan, BCCA president. “Even so, we would
need 1/10 high school graduates to enter the trades in order to have enough skilled journey people for the jobs that are coming.” Earlier this year Buildforce Canada revised its estimate for B.C. ’s skilled worker shortage to 15,000 by 2025, which is 51 per cent lower than their 2013 estimate of 30,500. “It’s very important to understand that the main reason for the predicted skilled worker shortage is retirements,” cautions McLachlan. “If liquefied natural gas projects go ahead, the gap gets even bigger. Do not make the mistake of disregarding the worker shortage because of lack of progress on the LNG side. The workforce pressure is on regardless.” Two thirds of B.C.’s construction workforce is over the age of 45. Construction is the largest employer in B.C.’s Goods Sector, with a total workforce of 210,000 in 2016. B.C.’s unemployment rate for youth
Ontario government releases Construction Lien Act Report The Ontario government plans to introduce legislation next spring that will modernize the province’s construction industry, which accounted for 6.7 per cent of Ontario’s GDP in 2015. Over the past 18 months, construction law experts Bruce Reynolds and Sharon Vogel of Borden Ladner Gervais LLP (BLG) have led a thorough and comprehensive review of the Construction Lien Act, and issued a report “Striking the Balance:” Expert Review of Ontario’s Construction Lien Act.” The Construction Lien Act sets out the rules regarding who has a lien (security against the property) and the process by which lien claimants can administer their rights. In their report, Bruce and Sharon made more than 100 recommendations addressing a wide variety of issues, such as: • Elongated payment cycles causing a wide ripple effect to industry participants; • Inefficient dispute resolution resulting in a drain on judicial resources and the provincial construction economy; • The disruptive nature of federal insolvency legislation on construction projects in the event of contractor insolvency; and • A variety of technical issues noted by stakeholders to be frustrating the purpose of the Construction Lien Act. To read the full report, visit: http://www.attorneygeneral.jus.gov.on.ca/english/ about/pubs/cla_report/
(those aged 15-24) has dropped 14 per cent since 2013. “These trends are all positive, but it’s important to recognize that 11.1 per cent youth unemployment means more than 42,000 young people would like to be employed but can’t find jobs,” says Chris Atchison, provincial manager of the Skilled Trades Employment Program (STEP). “When you compare that to the skills gap in our sector, the solution seems clear. But the problem is still a long way from being solved.” Construction pays an average annual wage of $57,715, an increase of 3 per cent and second only to the average yearly wage in the oil and gas sector. At 8.2 per cent of B.C.’s GDP and with an estimated $329 billion in proposed projects, trends in the construction workforce have a big impact on the provincial economy.
New interchange to create safer, more efficient commutes for Nova Scotians The governments of Canada and Nova Scotia announced more than $15 million in joint funding for the construction of Hwy 101 Granite Drive interchange project between Hortonville and Coldbrook. This project involves constructing an overpass, four ramps to form a “diamond” interchange, a 900-m connector road from the highway to Granite Drive, a roundabout at the end of Granite Drive and Silver Fox Avenue, and another at each intersection of the on/off ramps. “There are two important aspects of [this] announcement. The Granite Interchange will improve safety for our drivers on this section of Highway 101, and secondly it will facilitate access to one of the Annapolis Valley’s most important commercial centres – the village of New Minas,” said Keith Irving, Member of the Legislative Assembly for Kings South. Continued on page 14
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IMAGINE WHAT’S NEXT. Get the ultimate view of where construction is going. Go hands-on with the new technologies spread out over 2,500,000 square feet of exhibition space. Learn next-gen techniques, tools and ideas from over 140 education sessions. From earthshaking big iron to groundbreaking innovations, CONEXPO-CON/AGG 2017 is where over 130,000 construction industry professionals from around the world go to stay ahead of their competition.
Get the special $149 rate (and save up to $100) by registering early at www.conexpoconagg.com.
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INDUSTRY NEWS Once complete, the project will significantly improve traffic circulation, increase driver safety and reduce greenhouse gas emissions resulting from congestion. The government of Canada is contributing up to $7.66 million to this project, representing 50 per cent of the estimated $15.3 million total eligible project cost. The Government of Nova Scotia is providing the remaining funds.
Women Building Futures Partnership aims to attract more women to construction In celebration of Women’s History Month and the changing role of women in construction, BuildForce Canada and Women Building Futures announced Oct. 26 that they are teaming up to lead more women into careers in construction. “Encouraging more women to pursue
the construction trades is not only the right thing to do; it’s a necessity,” said Rosemary Sparks, executive director of BuildForce Canada. “Construction is undergoing major change and that creates a tremendous opportunity for women to make their mark in one of Canada’s most important industries. We’re confident that both women and industry will benefit from our new partnership.” BuildForce and Women Building Futures share a commitment to bolster the number of women in construction and help the industry fill the skills vacuum as baby boomers retire. One quarter of Canada’s construction workforce, or as many as 250,000 skilled workers are planning to retire this decade. “We are delighted to partner with BuildForce to further raise awareness
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among women that the world of construction offers endless career opportunities, which also tend to support a very nice lifestyle. Who wouldn’t want that?” said Judy Lynn Archer, president and CEO of Women Building Futures. “Thousands of women are ready to enter the workforce or make a career change, and we want them to know that we are here to help.” While the number of women in construction is increasing, the proportion of women who make up the skilled trades workforce in Canada remains at approximately 4 to 5 per cent.
Skyway Wastewater Treatment Plant celebrates grand opening The governments of Canada and Ontario have invested in upgrading and expanding the Skyway Wastewater Treatment Plant in Halton Region. Upgrades and the expansion of Halton Region’s Skyway Wastewater Treatment Plant will improve the quality of water through the addition of a new sand filtration process that will provide a tertiary level of treatment. A new laboratory and regional operations facility was also constructed to facilitate plant operations and monitor water quality. In addition, the expanded plant will have the capacity to treat and discharge the equivalent of more than 56 Olympic pools of clean water into Lake Ontario every day. This increased capacity will meet the region’s requirements for growth today and in the future. The governments of Canada and Ontario have each contributed $51.5 million towards this project. The Regional Municipality of Halton is responsible for the remainder of the project costs. “Halton is committed to investing in quality infrastructure now and for the future. The Skyway Wastewater Treatment Plant improvements will ensure we keep pace with growth and Halton continues to be a great place to live.
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CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry
NON-RESIDENTIAL BUILDING CONSTRUCTION UP IN THE THIRD QUARTER The composite price index for non-residential building construction rose 0.4 per cent in the third quarter. The increase was the result of higher material prices reported by contractors in the structural and architectural trades in Vancouver. Contractors in four of the seven census metropolitan areas surveyed reported quarterly increases. Vancouver (+1.5 per cent) posted the largest gain. Building construction costs were unchanged in Halifax, Montréal and Ottawa–Gatineau (Ontario part). Yearover-year, the composite price index for non-residential building construction rose 1.3 per cent.
BUILDING PERMITS DOWN IN SEPTEMBER
CONSTRUCTION EMPLOYMENT UP IN OCTOBER
Municipalities issued $6.9 billion worth of building permits in September, down 7.0 per cent from August. Quebec, British Columbia and Ontario recorded the largest declines. The overall decrease was attributable to lower construction intentions for non-residential buildings, led by commercial structures. The value of non-residential building permits was down 22.3 per cent to $2.2 billion in September, following two consecutive monthly advances. All three non-residential components—commercial, institutional and industrial—posted decreases, with commercial buildings registering the largest drop.
Employment rose by 44,000 (+0.2 per cent) in October as a result of more part-time work. The unemployment rate remained at 7.0 per cent as more people participated in the labour market. Provincially, employment was up in Ontario and British Columbia, while it declined in Newfoundland and Labrador. Employment in construction increased by 24,000 in October, with most of that occurring in Ontario and Quebec. Year-over-year gains in this industry totalled 47,000 (+3.4 per cent).
16 / DECEMBER 2016
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2017 FORECAST
18 / DECEMBER 2016
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Public spending to carry the load for growth BY JIM BARNES
T
he crystal ball for Canadian construction next year was already cloudy before Donald Trump was elected the 45th president of the United States. That one event has thrown a lot of forecasts into the trash bin. It’s difficult to assess the impact. Themes of his campaign included reworked international relations, a focus on U.S. infrastructure and abandoning climate-change initiatives – and most importantly for Canada – renegotiating trade deals. How much of this platform was mere rhetoric and how much can win support in Congress and the Senate? It looks like 2017 will be an eventful year.
MURKY Only one thing seems certain, the government’s reliance on infrastructure spending to keep the Canadian economy moving. “By the spring of 2017, you would expect to see a real avalanche of public infrastructure work coming,” says Michael Atkinson, president of the Canadian Construction Association in Ottawa. Even before the U.S. election, predictions uniformly called for weak economic growth in Canada. In mid-October, the Bank of Canada (BoC) projected Canada’s real GDP to grow by 1.1 per cent in 2016 and about two per cent in both 2017 and 2018. The economy won’t return to full capacity before mid-2018, BoC said. In a fiscal update delivered in October, Federal Finance Minister Bill Morneau forecast higher deficits and no return to balance through 2021-22.
TRADE OFF Growing protectionism can be expected from the new regime in the U.S. While few Canadian construction contractors do much offshore business directly, their clients do. Trump has vowed to rip up NAFTA. The North American Free Trade Agreement is the cornerstone of trade among Canada, the U.S. and Mexico. Can it be discarded so quickly? Apart from the legalities (and legal challenges inevitably would follow), Republicans have
historically been pro-trade and any such legislation may run into friction in Congress and the Senate. However, whether NAFTA survives or is somehow renegotiated, “Buy American” policies can be expected to proliferate. Even before the potential trade disruptions with the U.S., exports were expected to weaken. “Growth in exports over 2017 and 2018 are projected to be slower than previously forecast, due to lower estimates of global demand, a composition of U.S. growth that appears less favourable to Canadian exports, and ongoing competitiveness challenges for Canadian firms,” according to the BoC. “Modest prospects in the global economy will hamper Canadian growth in 2017.”
VERTICAL THINKING Non-residential building – what Atkinson calls the vertical sector – is hurting. “The horizontal industry, in terms of sewer and water, roads and bridges, seems to be doing okay… That tends to be provincial and municipal. It’s less clear what is going to happen in the vertical, building area.” Investment in non-residential building construction totalled $12.5 billion in Q3 2016, the sixth decrease in seven quarters dating back to the first quarter of 2015, according to Statistics Canada (Stats Can). The decline especially reflected lower spending on commercial and industrial building construction. “Corporations are sitting on all this cash that they are not investing, primarily due to the mood of uncertainty and low confidence,” says Atkinson. That lack of confidence is unlikely to improve with the changes in the U.S. Executives surveyed in the Conference Board of Canada (CBoC)’s pre-Trump Autumn 2016 Survey of Business Confidence revealed increasing concern about Canada’s investment climate. The index of business confidence fell three points to 94.8 in the third quarter of 2016 (2002=100). Stats Can capital expenditure data, which includes both nonresidential capital construction and machinery and equipment, also points to weakness. For 2016 the agency was projecting about $242 billion, down 4.4 per cent from 2015 and down more than 11.2 per cent from 2014. “That translates to somewhere between 23 and on-sitemag.com / 19
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$30 billion of actual construction investment,” says Atkinson. A primary indicator of demand in industrial construction is capacity utilization rates. Canadian industries operated at 80 per cent of production capacity in Q2 of 2016, down from 81.4 per cent in Q1. The decline was widespread, with 19 of the 21 major groups in the manufacturing sector recording a lower rate. A decrease was also observed in every other non-manufacturing industry surveyed, except electric power generation, transmission and distribution, said Stats Canada.
BIG PRIVATE PROJECTS According to Stats Can, total capital spending by private-sector organizations is expected to decline 9.3 per cent to $157.4 billion in 2016, mainly due to declines in spending on capital construction.
Oil and gas extraction capital expenditures totalled $8.8 billion in the second quarter, down 28.8 per cent from the second quarter of 2015. Oil was trading at about the $45 per barrel mark at the time of the U.S. election, and is anticipated to decline further. That’s bad news for oil sands operators, who need a price of about $57 per barrel to turn a profit. “With commodity prices expected to remain low, a recovery in 2016 is not in the cards,” noted CBoC. One bright note in the U.S. election comes for pipeline companies. President-elect Trump supports pipeline construction, a sentiment shared by most Republicans in government. A number of pipelines are under consideration, including the pivotal Keystone XL pipeline that President Obama ruled against. It won’t be a slam dunk for pipelines, though. Energy Board and environmental requirements have to be met and in some cases negotiations concluded with First
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Nations peoples whose land the pipelines may cross. Even before the U.S. election, the outlook was weak. “It’s a double whammy,” says Atkinson, referring to the declines both in the resource sector and manufacturing. “In the overall Canadian economic numbers, that has been reflected in how badly exports have been doing. They are nowhere near what was anticipated.”
on the previous government’s already large commitment to infrastructure in two phases of spending totalling $120 billion over 10 years. Phase 1 of the funding committed $5 billion to green infrastructure, $3.4 billion to social infrastructure and $3.4 billion to public transit and transportation infrastructure, among enhancements to the basic program. RAMPING UP INFRASTRUCTURE Phase 2 will be in place by the end of the year, the government The Liberal government made infrastructure investment a major has announced. The specifics are not yet available. plank of its election platform, predicting economic stimulus and More money followed. In the Fall Economic Statement, Morneau improved Canadian competitiveness. announced a further $22.6-billion in infrastructure spending for As reported in On-Site’s August, 2016 issue, they doubled down two years following the 2025-26 fiscal year. He also announced a $10.1-billion commitment to trade and transportation infrastructure over 11 years, starting in 2017-18 and $2-billion over 10 years for rural and northern communities, starting in 2018-19. Concerns about the housing market overheating are now being As well, private-sector access to shared by government and the Canadian Housing and Mortgage Corp. programs is to be simplified and a Canadian (CMHC). Infrastructure Bank established (see sidebar Historically high household indebtedness (now 168 per cent of on page 24). Further details will follow in the 2017 budget. disposable income) is the greatest vulnerability in our economy, says Canada’s infrastructure gap may be as BoC. high as $500 billion, Morneau said. The Fuelling high prices is offshore speculation. At the beginning of infrastructure situation is indeed serious. August, the B.C. government instituted a 15-per-cent tax on foreign According to the 2016 Canadian Infrastrucbuyers of Greater Vancouver-area homes. Immediately, in September, ture Report Card published by CCA, FCM, property sales fell 32.6 per cent year-over-year. To put that in context, the Canadian Public Works Association and sales in the Greater Toronto Area climbed 21.5 per cent that month, the Canadian Society for Civil Engineeryear over year. ing, 35 per cent of municipal infrastructure The federal government also moved, announcing new tax and assets are in need of attention, especially mortgage measures in October. Included are tougher mortgage-qualroads, municipal buildings, sport and recreification rules and the elimination of capital gains tax loopholes for ation facilities and public transit. non-residents. According to Infrastructure Canada’s Royal Bank of Canada economist Robert Hogue noted: “Our prelimidataset, more than 300 public projects are slated to start in nary estimates show a projected decline of nearly 11 per cent in 2017, of all sizes home resales in Canada in 2017 compared to our previous fore-
Soft housing
cast for a 3.7-per-cent decline, and a small price decline of 0.2 per cent compared to a rise of two per cent previously.” Late in October, CMHC entered the fray, increasing its overall risk rating on Canada’s housing market from “moderate” to “strong.” Red-flagged are Vancouver, Calgary, Saskatoon, Regina, Hamilton and Toronto, with several other markets assessed as “moderate” risk. Housing starts should range from 181,300 units to 192,300 units in 2016 and 172,600 to 183,000 units in 2017, a slowdown from 2015’s 195,535 starts, says CMHC.
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2017 FORECAST
across the country. The country is witness to roadbuilding and transit megaprojects of unprecedented scope, as referenced in previous editions of On-Site. “A lot depends on the federal government and the provinces getting together to work out the details of the new program and get all the paperwork out of the way. Once that’s done, we still need to see the projects tendered. The vast majority of those projects are not tendered by the federal government,” says Atkinson.
A NATION OF REGIONS Atkinson notes that this avalanche of stimulus spending is regional as well as federal. “Massive programs have been announced provincially as well. A lot of that work is not in the hopper yet.” Fiscal constraints are going to be a factor. Even without impact from the U.S. election, weak GDP growth has been forecast for the provinces in 2017. Atlantic: According to the 33rd annual Major Projects Inventory published by the Atlantic Provinces Economic Council (APEC) in June, 412 projects worth $125 billion are planned or underway in Atlantic Canada. The document predicts that investment in major projects will total $12.8 billion in 2016, down about two per cent from the previous year. A further decline is expected for 2017, offset by stimulus spending and Vale SA’s nickel mine in Labrador. Increased offshore exploration and mining activity could bring investment back into positive territory, APEC noted. Quebec: Spending of $88.7 billion over 10 years was announced through the province’s infrastructure investment program, an increase of $300 million from last year’s program. Ontario: There are plans in place to spend more than $137 billion over the next 10 years on roads, bridges, public transit, hospitals and schools and other public infrastructure. Combined with previous commitments, $160 billion will be spent on public
Banking on infrastructure The other shoe has dropped for the Canadian Infrastructure Bank (CIB), mentioned in the government’s Spring budget. The premise is simple: the federal government will leverage its infrastructure spending by using its credit rating and lending authority to make it easier for municipalities to build projects. The CIB may also provide loan guarantees and capital contributions to ensure the projects are built. The finance minister’s advisory council has recommended that the CIB be capitalized with at least $40 billion over 10 years. That is expected to leverage at least $160-billion in private capital. Morneau predicted that it would oversee some $15 billion in government money supplemented by an estimated $20 billion from private sources. Question number one is: where is the money coming from? One obvious source is the existing commitment to spend $60-billion on infrastructure over 10 years. It’s not that simple, though. Some of that money has already been allocated to Phase 1 of the infrastructure plan, and negotiations on some $48-billion in Phase 2 spending are already underway. The Federation of Canadian Municipalities (FCM) has voiced concern that the CIB might be financed with funds that the government has already promised for major projects.
Champlain Bridge
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2017 FORECAST
Ontario plans to spend more than $137 billion over the next 10 years on roads, bridges, transit, hopitals, schools, and other public infrastructure.
infrastructure over the 12 years starting in 2014–15. Manitoba: $1.8 billion has been allocated for strategic infrastructure, including roads and bridges, flood protection, hospitals, educational institutions, as well as municipal infrastructure in Budget 2016. Saskatchewan: More than $3.5 billion is being invested in infrastructure projects in 2016-17. Energy distribution, power transmission and telecommunications networks, schools, hospitals and highways are part of a record single-year infrastructure investment plan. Alberta: Capital Plan 2016, part of the 2016 budget, allocates some $34.8 billion over five years to reduce the province’s infrastructure deficit. The focus is on planning, building, maintaining and improving schools, hospitals, transportation systems and other public infrastructure. British Columbia: The 2016 budget will inject $12 billion into the economy over the next three years. Major investments are planned for transportation infrastructure, including highway upgrades and transit infrastructure; new and upgraded health care projects; post-secondary facilities; and K-12 school facilities.
the other island… There is a real desire to embrace technology and new methods – perhaps a lot quicker than before – particularly when they bring productivity or competitive edges,” notes Atkinson. Labour will remain an industry concern. According to BuildForce, 11,000 new jobs will be created due to market expansion, replacing retirees will require an estimated 250,000 workers. Even allowing for improvements to interprovincial mobility 27,000 new recruits from outside the industry and likely outside of Canada will be required. The industry can expect some contraction, partly due to demographics. “You’re going to see more mergers and acquisitions. You’re going to see some of the smaller and medium size companies start to disappear,” says Atkinson. “Demographics plays not just on your personnel, but also on company ownership. Some of those fourthgeneration firms don’t have a fifth generation that is available or interested.” “Those types of influences are irreversible.” Atkinson suggests keeping a close eye on Phase 2 of the Building Canada Plan. “I think the public-sector infrastructure projects will be the big ones, particularly in the water and sewage treatment areas, LRTs, mass transit.”
IRREVERSIBLE CHANGE The industry will evolve in response to fierce challenges. “You can no longer sit on your own island and not worry about what’s going on on
Jim Barnes is a contributing editor to On-Site.Send comments to editor@on-sitemag.com
26 / DECEMBER 2016
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Pickup Truck Report
2017
Pickup Trucks BY JIL MCINTOSH
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With trucks as popular as they are, automakers can’t afford to stand still. Several models undergo everything from a mild refresh to a complete makeover for 2017. For those who need ultimate workhorses, Ford completely updates its Super Duty, while General Motors puts a new Duramax diesel into its HD models. Nissan adds a redesigned half-ton Titan following last year’s release of its large Titan XD, while Honda’s new Ridgeline handles light-duty needs. Here’s what the truck manufacturers have to offer.
Ford F-150 XLT
FORD Ford puts a new engine and transmission in its F-150, unveils an all-new Super Duty, and reintroduces its high-performance Raptor. The new F-150 engine is a turbocharged 3.5-litre EcoBoost V6 engine making 375 hp and 470 lb.-ft. of torque, compared to 365/420 in last year’s version. Carried over from 2016 are a 2.7-litre EcoBoost V6, naturally-aspirated 3.5-litre V6, and 5.0-litre V8. A new 10-speed automatic is added to some models, in addition to a six-speed transmission. Depending on the model, maximum towing capacity is 12,200 lbs. Like the F-150, the all-new Super Duty gains an aluminum body underpinned by a high-strength steel frame. Choices are Regular Cab, SuperCab and Crew Cab, with two wheelbases and box lengths.
The Super Duty comes as the three-quarter-ton F-250; oneton F-350 with single or dual wheels; and 1.5-ton F-450. Engine choices are a 6.2-litre V8 engine producing 430 lb.-ft. of torque, or a 6.7-litre Power Stroke V8 diesel making 925 lb.-ft. Maximum towing is 21,000 lbs., while payload hits 7,630 lbs. New available Super Duty technologies include adaptive cruise control with trailer brake support, forward collision warning, blind spot monitoring (including when a trailer is attached), speedsensitive adaptive steering, and a moveable rearview camera for mounting on a trailer. The Raptor returns with a high-output 3.5-litre EcoBoost engine that’s more powerful than the V8 it replaces, with 510 lb.-ft. of torque, along with a 10-speed transmission and new 4WD system that can be dialled in for specific driving conditions.
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Pickup Truck Report
GENERAL MOTORS General Motors makes a few changes to its Chevrolet Silverado and GMC Sierra, including a new 6.6-litre V8 Duramax diesel engine in its heavy-duty models. On the 1500 models, capless fuel fill is standard, and lowspeed emergency braking is added to the optional driver alert package. Maximum towing on the 1500 Crew Cab rises by 500 lbs. to 12,500 lbs., matching the Double Cab’s maximum rating. The Silverado and Sierra 1500 models come in Regular, Double, and Crew Cab, in 2WD or 4WD, and with three available box lengths. Engine choices are a 4.3-litre V6, 5.3-litre V8, or 6.2-litre V8, all of which switch to four-cylinder operation under light load for improved fuel economy. A six- or eight-speed automatic is available depending on engine. A limited number of 5.3-litre models are available with eAssist,
HONDA Although not designed as a work truck, Honda’s Ridgeline may fit the bill for lighter-duty needs. It’s redesigned for 2017 with a more truck-like appearance and new driveline. It uses a 3.5-litre V6 engine making 280 hp and 262 lb.-ft. of torque. The engine automatically switches to three cylinders under light load, and combined city/highway fuel economy is 11.3 L/100 km. Unlike other trucks, the SUV-based Ridgeline uses an all-wheeldrive system that’s primarily front-wheel biased and sends power to the rear wheels as needed. Maximum towing is 5,000 lbs., while payload tops out at 1,570 lbs.
Chevrolet Silverado 1500 High Country
a mild hybrid system that adds gasoline-free power on acceleration and keeps the engine in fuel-saving mode longer. The battery charges through regenerative braking and doesn’t require plugging in. The new 6.6-litre Duramax diesel available in the 2500HD and 3500HD improves on the previous 6.6-litre with 445 hp and 910 lb.-ft. of torque. Also available is the carried-over 6.0-litre gasoline V8, making 380 lb.-ft. of torque. Although the Silverado and Sierra are mechanical twins, they differ slightly in their trim levels. The Silverado 1500 comes in six trims, including a base Work Truck trim on all cabs and configurations, and rising to the High Country 4WD Crew Cab. The Sierra comes in four trims, topped by the luxury Denali.
Honda Ridgeline
The unique dual-action tailgate drops down conventionally, or can be opened sideways like a door for easier load access. The bed is made of a non-corroding composite material and includes a locking trunk under the box, with drain plugs for washing it out or using it as a cooler. The interior also features considerable storage space, and the folding rear seats are on metal legs so items can be stored under them while passengers are seated. Those who only need a lighterduty truck and are looking at options such as the Chevrolet Colorado, GMC Canyon, Nissan Frontier or Toyota Tacoma might want to consider the Ridgeline as well.
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Pickup Truck Report
Nissan Titan
NISSAN In 2016, Nissan introduced its large Titan XD, intended to span the gap between half- and three-quarter-ton trucks. For 2017, the company adds the Titan Crew Cab V8 half-ton. Single cab and King Cab models will be added later, along with a V6 engine. For 2017, Nissan adds a new factory warranty that covers all trucks bumper-to-bumper for five years/160,000 km. The new Titan half-ton uses a 5.6-litre V8 that makes 390 hp and 394 lb.-ft. of torque, up from the 317/385 produced by the last-generation 5.6-litre, and mated to a seven-speed automatic transmission. It shares its cab with the Titan XD but rides on a different chassis and is 373 mm (14.7 in.) shorter overall. Available in 2WD or 4WD, the Titan half-ton tops out at a maximum 9,390-lb. towing capacity. It comes in five trim levels, all of which include a 5-ft.-5-in. bed, locking tailgate, folding 60/40 rear seats, and mobile phone app integration. Waterproof, locking in-bed storage boxes are available. The larger XD continues into 2017, as a Crew Cab with a 6-ft.-
“ 5-in. bed, and in 2WD or 4WD configuration. It’s available with the 5.6-litre V8 gasoline engine that’s upped to 401 lb.-ft. of torque for the XD, or with a 5.0-litre V8 Cummins turbodiesel that makes 310 hp and 555 lb.-ft. of torque. The XD’s towing capacity reaches a maximum of 12,038 lbs., which may seem like a head-scratcher given that some competitors’ half-tons are rated for more. The key is in how easily it handles heavy loads. Those who pull consistently at half-ton full capacity, but who don’t want to move up to heavy-duty, should give it consideration.
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RAM Ram remains the only half-ton pickup available with a diesel engine, although buyers now have a second choice with Nissan’s slightly larger Titan XD. The 2017 Ram carries over with only minor changes, including a new cabin air filter, and automatic climate control added to more models. The three-quarter-ton Ram 2500 adds two trim lines: the Power Wagon, with trim-specific styling and interior, and a 4x4 OffRoad Package with Bilstein shocks, limited-slip differential, and hill descent control. The Ram 1500 is available in Regular Cab, Quad Cab, and Crew Cab, while the 2500 and 3500 come in Regular, Crew, or the oversized Mega Cab. Two bed lengths are offered. Engines in the 1500 are a 3.6-litre gasoline V6; 3.0-litre EcoDiesel V6 producing 420 lb.-ft. of torque; and 5.7-litre Hemi V8 making 410 lb.-ft. of torque. Six- or eight-speed automatic transmissions are available, depending on the engine. Towing capacity rates are as high as 10,640 lbs. The 2500 and 3500 models offer the 5.7-litre V8, plus a 6.4-litre Hemi V8. The diesel option is an inline six-cylinder 6.7-litre Cummins, rated as high as 900 lb.-ft. of torque in the 3500, and which can be ordered with a manual transmission. Towing capacity for the 3500 is a maximum of 31,210 lbs. The 1500 offers an optional four-corner air suspension, which can be lowered for accessibility or raised for rough terrain, but its weight affects the maximum payload. Ram’s available RamBox bed-side storage system provides locking storage for tools and other items.
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Pickup Truck Report
Toyota Tundra Platinum
TOYOTA Toyota’s full-size Tundra carries over unchanged for the 2017 model year, including the off-road-ready Tundra TRD Pro package added last year. The Tundra comes only as a half-ton, in Regular, Double Cab or CrewMax configuration, with three bed lengths depending on the cab or trim, and in 2WD or 4WD. A 4.6-litre V8, producing 310 hp and 327 lb.-ft. of torque, is available in specific Double Cab 4x4 models. All others use a 5.7-litre V8 making 381 hp and 401 lb.-ft. of torque. Both engines use a six-speed automatic transmission. All models come standard with a backup camera, front tow hooks, manual headlight levelling system and phone connectivity. Trucks equipped with the 5.7-litre include a heavy-duty tow hitch receiver. Towing capacity goes as high as 10,196 lbs. in 4x4, and up to 10,500 lbs. for 4x2 trucks, while payload reaches 1,770 lbs. Numerous options and packages are available for the Tundra, including blind spot monitoring, a power-sliding rear window that
completely opens vertically like a door window, factory spray-in bedliner, and the luxury 1794 Edition. The Tundra TRD Pro, available in Double or CrewMax configurations, uses the 5.7-litre V8 and has a towing capacity of 9,800 lbs. It includes a factory-installed trailer brake controller, 4- and 7-pin connectors, transmission cooler, and heavy-duty hitch receiver, along with an off-road suspension kit, skid plate, dual exhaust, and TRD-themed styling cues.
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Concrete industry needs to promote its strength
A
t a recent presentation by the Institute for Catastrophic Loss Reduction (ICLR) on the impact of disasters, the data presented indicates that for the insurance industry to remain cost effective and sustainable, more work must be done to build our infrastructure to resist these forces. Since 1983 the losses have grown from approximately $300 million to more than $4.5 billion expected once all the numbers come in for the end of the year, as outlined by the Insurance Bureau of Canada. The Fort McMurray fires added substantially to these numbers. Although some years these costs go down, the trend is generally upward. Shifting climate is one of the major factors, along with aging infrastructure and more people, thus more property at risk. The concrete industry is poised to address many external factors. Disasters come in many forms but five of the main hazard areas are being addressed through research by ICLR. Wildfire, earthquake, wind, hail and water all are under scrutiny. The ICLR has a plan to address these hazards with some simple guidelines as follows: 1. Promote best practices to enhance the resilience of existing homes to damage from natural hazards. 2. Work with builders and others to champion resilient design and construction of new homes. 3. Partner with municipalities to advance homeowner basement flood risk reduction efforts. The first two fall into the realm of the concrete industry as a means to provide the type of structure that will not be destroyed and can withstand the elements that create these disasters. But as we see these developments and concerns arise around the globe, in the Canadian market we see the political will and perceived economic benefit of building with wood to higher and higher stories. Low-rise residential, and small buildings have been a healthy market for the wood industry for many years, but the push for six-storey, wood-frame structures has been successfully accepted by several provinces as well. The National Building Code is in the process of adopting 12-storey wood frame construction for the next version of the NBC in 2020. Although they may stand the structural test of engineering, will they withstand the disasters that the insurance industries are currently spending billions of dollars on? The unfortunate part in analyzing the disaster situation, is that the ICLR becomes partially complacent in the promotion of techniques to ensure that wood-frame buildings will be able to cope with some of the disasters such as proper nailing into sheathing and hurricane hangar attachments. If they are serious about
mitigating losses and property protection. They must look at, and promote solutions that the concrete industry brings to the table. Previously this column has discussed the higher insurance costs of building to six-storey wood-frame and higher. Even with these initial higher costs it does not deter those that believe wood is more environmentally sustainable, cheaper to build and quicker to construct. Those premiums still don’t address the long-term durability that the concrete industry brings to the table with cast-in-place concrete and reinforced steel structures. The latest testing for window detailing with insulated concrete forms outlines the extreme weather protection an ICF wall can achieve around this significant penetration in the wall. Concrete buildings during wild fires, like the Fort McMurray disaster, can minimize some of the structural damage by keeping the structure intact. Evidence collected from this latest disaster shows the spread of fire from house to house was by flaming embers. If these houses were constructed out of concrete, there would have been no combustion from any source. Many other stories about houses in wildfires highlight the last houses standing as being constructed out of concrete. Durability; disaster resistant, wind and hail resistance, earthquake resistant, these are the trademarks of a concrete building system. Although we see insurance and political wills driving buildings and infrastructure to levels of energy efficiency and economic benefit, (through the use of wood), without addressing the complete picture, the concrete industry must continue to promote its strengths in a world that needs more of our products as the onestop solution. Provided by the Canadian Ready-Mixed Concrete Association. Send comments to editor@on-sitemag.com.
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OnSite_M
Interchange on Autoroutes 640 and 15 Boisbriand, QC, Canada
As a part of the transformation of the former General Motors site in Boisbriand, and to improve the Highway 15/Highway 640 interchange, the MTQ (Quebec Ministry of Transportation) commissioned a consortium of engineers – including Genivar, Dessau and Cima – to carry out a large-scale reconfiguration of these interchanges. The project brought together the expertise of a multi-disciplinary team of transportation, urban infrastructure and traffic engineers. How MAPEI products were used on the jobsite The MTQ asked the MAPEI representative to do a patch test on the project jobsite, because the color of the product originally specified was too dark compared to the new concrete pour, making the patches very apparent. Planitop ® 23 repair mortar was selected for the patch on the overpass. Using a sandblaster to sandblast the Planitop 23, the MAPEI representative showed that the MAPEI product was lighter, better matching the existing concrete on the interchange. The MTQ accepted the MAPEI product, which also led to the use of Planigrout ®712 DOT grout in this job. MAPEI’s Planitop 23 and Planigrout 712 performed well, and the contractor and the MTQ were very pleased. COME VISIT US AT WORLD OF CONCRETE
LAS VEGAS CONVENTION CENTER
1-17-2017 to 1-20-2017 • BOOTH #S11127 COME VISIT US AT BUILDEX VANCOUVER
Vancouver Convention Center West
2-15-2017 to 2-16-2017 • BOOTH #1131
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FASTENERS
What’s New In
CONCRETE ANCHORING? New products and regulations are on tap for the concrete anchoring sector BY NATE HENDLEY
Hilti HIT-HY 200 anchoring adhesive system
photo caption
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?
SDX Max Rotary Hammer.
T
he next few months will see new concrete anchoring product releases and new U.S. regulations about using such products. Power tool companies that sell concrete anchoring solutions will be displaying their wares at World of Concrete, scheduled January 17 – 20, 2017 in Las Vegas. “We plan on showing our new Speed Clean System with hands-on product demos,” says Fred Tai, engineering manager at Simpson Strong-Tie Canada, which has operations in Maple Ridge, B.C. and Brampton, Ont. Developed with Bosch, the Speed Clean DXS Dust Extraction System decreases dust while producing clean, precise holes for adhesive anchor installation. DXS System drill bits can work in conjunction with common vacuum systems and rotohammers
There will be several products from the Maryland firm now known as DeWALT Engineered by Powers in Vegas, including AC 200+ adhesive, the Hollow Drill Bit (HDB) and the FLEXVOLT SDS Max Rotary Hammer. AC 200+ is “the big product we’re introducing to market … it’s a fast-cure adhesive with all the approvals for cracked concrete and uncracked concrete,” says Sean Agresta, a field engineering manager for Stanley Black & Decker Canada, in Mississauga, Ont. Stanley Black & Decker is DeWALT’s parent company. Other soon-to-be released DeWALT products include the Mini-Undercut+ and Hangerworks. The Mini-Undercut+ is “a shallow embedment anchor that can be used in
“Chemical anchors require you to blow out and brush the hole to properly clean the hole before anchor i nstallation and this creates silica dust. The new OSHA requirements require you to capture this dust...”
for concrete drilling. With the DXS, construction workers don’t have to clean out anchoring holes in traditional blow-brush-blow fashion, thereby reducing airborne silica dust—an important consideration, given pending industry rules.
seismic/cracked concrete applications with only a ¾ inch embedment … Currently if an engineer/contractor needs to anchor into a PT (post-tension) slab and required the above qualifications, they would need to scan the concrete first before drilling,
since the minimum embedment for a typical qualified anchor would be beyond where the cables are generally positioned. It’s a very serious structural and safety concern if one of these cables were drilled through … The Mini-Undercut+ has been designed with a stop drill bit to prevent over drilling,” says Agresta. Hangerworks is a proprietary Autodesk Revit software plug-in that allows designers to plot where to place anchors and “figure out point loads, seismic loads, calculate what size anchor, how many … [the designer] can also determine what size strut he needs, what size rod he needs, what spacing, etc.,” he continues. Hilti North America is launching several products next year, including, “the new Kwik Cast single point cast in place anchor [for] our mechanical and electrical contractors who prefer to cast in their anchors for hanging pipe and strut … The notched T-bolt system for our HAC cast in anchor channel product, which is the first cast in channel system with ICC approval for lateral seismic loads … The KB-VTZ, an economical stud anchor for seismic and cracked concrete, and an upgrade to the HIT-HY 200 product, which will bring on average 20 per cent higher loads in cracked concrete, groutfilled block ICC approvals, and a category 1 rating for installation into water saturated holes. This means, with the HIT-HY 200 and RE 500 V3, Hilti will be the only manufacturer with a slow cure and a fast cure product that do not have reductions in loads when used in jobsite conditions involving on-sitemag.com / 41
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FASTENERS
water saturated holes,” says Robert Dettman III, anchor BU manager for Hilti North America, headquartered in Plano, Tex. A big part of Hilti’s focus at the World of Concrete will be on existing products such as HIT HY-200 anchoring adhesive system and HIT-RE 500 V3 epoxy adhesive system. Hilti wants to highlight these products’ ability “to resolve the new standards from OSHA for silica dust on jobsites,” explains Dettman. The new standards, from the Occupational Safety and Health Administration in the U.S., are designed to reduce workers’ exposure to silica dust kicked up during construction. According to OSHA, inhaling crystalline silica particles can lead to silicosis, lung cancer, kidney disease and chronic obstructive pulmonary disease. The OSHA requirements take effect for construction sites June 23, 2017. While these regulations concern the United States, they will obviously impact Canadian firms working south of the border. There is also the possibility similar regulations might be adopted in Canada. “Chemical anchors require you to blow out and brush the holes to properly clean the hole before anchor installation and this creates silica dust. The new OSHA requirement requires you to capture this dust … for blowing out drilled holes [the rules] require the use of a HEPA filter to capture the silica dust. While these standards may not apply to our Canadian markets yet, we know that many contractors will want to make sure they meet the latest safety standards available,” states Dettman. Tai says some B.C. contractors are already “being asked to submit a dust management plan to deal with silica dust that is generated during the installation of concrete anchors.” He has observed another west coast trend: “In seismic zones, drop-in anchors are not permitted to be used in overhead conditions. That is explicit in the design code that came into effect two code cycles ago. However, implementation has been lacking in B.C. The trend in the last
Speed clean DXS
“Cold climates normally do not affect mechanical anchors. However, adhesive anchors are affected by installation temperatures.” couple of years by the building department is to rigorously enforce this requirement. The alternative anchor that meets the new code requirement is more of a wedge style anchor that meets the cracked concrete requirement and also has ULC listing for hanging sprinkler pipes,” states Tai. Companies sometimes adapt their concrete anchoring systems to account for Canadian weather. “Hilti always keeps the needs of Canada and the northern United States in mind when developing our chemical anchors, which is why our systems are specifically developed to be used in the coldest installations. Our HIT-HY 200 chemical anchoring system can be installed in temperatures down to 14 degrees F (-10 C). Our HIT-RE 500 V3 product can be installed down to 23 degrees F (-5 C), which makes it the first and only epoxy anchoring system that can be installed below freezing temperatures. Hilti also offers a special chemical anchor for when the temperatures get really cold. HIT-ICE can be installed in temperatures down to -10 degrees F (-23 C),” says Dettman. “Cold climates normally do not affect mechanical anchors. However, adhesive anchors are affected by installation tempera-
ture. The cure times are affected. Simpson offers two different adhesive anchors, one for cold weather and one for [warm weather]. AT-XP is our cold weather anchoring adhesive for concrete anchoring of both threaded rods and rebar dowelling,” says Tai. Designed to be used with cracked and uncracked concrete and masonry, AT-XP is a high-strength acrylic adhesive that cures in temperatures as low as 14 degrees F or -10 degrees C in 24 hours. Canadian contractors are putting such products through their paces. Hilti’s HIT HY-200 adhesive system is being used for anchoring applications in a construction project that’s transforming Sutton Place, a one-time legendary Toronto hotel, into luxury condominiums. Hilti also has a presence in construction work at Toronto’s Union Station. “We had many applications [at Union Station], but the main two were RE 500 V3 for rebars and HY70 for attachment to a terracotta tiled ceiling,” reports Dettman. DeWALT concrete anchoring adhesive products are being used for repair projects on the Jacques Cartier Bridge, Champlain Bridge and Olympic Stadium in Montreal. “All three are having some major work done on them at this point,” states Agresta.
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OnSite_ 105195
For over 75 years, QUIKRETE® has been America’s top choice for building the strongest projects and bringing old ones back to life. With 150 manufacturing plants and over 200 professionalgrade products, QUIKRETE has what you need for your next residential or commercial concrete construction job, no matter the size. Learn more at quikrete.com.
WHAT AMERICA’S MADE OF. ®
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WOC PREVIEW
Start planning for World of Concrete 2017 Massive annual show covers all things concrete
I
f your livelihood depends on concrete technology, you have the perfect excuse to make a trip to Las Vegas in January. Since 1975, World of Concrete has been the primary annual international event dedicated to concrete and masonry construction professionals. To be held January 17 to 20 at the Las Vegas Convention Centre, the event will spotlight innovative products, construction machinery, safety training courses and new technologies designed to help grow your business. Join more than 60,000 industry professionals, 1,500 exhibitors and well over 90 speakers from around the world at this landmark event. WOC will once again feature special product and action areas. These include: • The Producer Center: A marketplace of materials, equipment and demos for concrete producers; • Material Handling: Here you’ll see trucks, excavators and more for material delivery, distribution, concrete placement, and earth moving. • Concrete Repair & Demolition: Featuring a display of surface preparation equipment, scarifying, sawing equipment, concrete repair, and other demolition products. • World of Masonry: Check out products, tools, information, and technology for masonry professionals. • Technology for Construction: featuring the newest products and tools for the commercial construction industry from top information technology and systems providers; and • Concrete Surfaces & Decorative: Showcases decorative concrete for both commercial and residential applications including concrete coatings, waterproofing products and technologies and more. • Precast: The precast area focuses on products, technologies and equipment including coring machines, pipe unloaders, precast forms, above/below ground precast, concrete pipe, manhole and septic tank equipment, and more. Visit www.worldofconcrete.com to view a full list of exhibitors, the latest show news, and a detailed program schedule.
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PERFORM AT A HIGHER LEVEL
TB 110
Truck-Mounted Telescopic Belt Conveyor
Operating at up to 5 cubic yards per minute, the Putzmeister Telebelt® TB 110 can quickly convey concrete and a wide variety of materials ranging from sand to 4-inch rock. The four-section telescopic conveyor provides 106 feet 1 inch of horizontal reach with smooth, surge-free conveying. Unique butterfly outriggers make setup quick and easy in congested areas – even in rough terrain – making the TB 110 one of the industry’s most versatile units. At Putzmeister, exceeding your expectations isn’t a goal – it’s mandatory.
800.884.7210 | PutzmeisterAmerica.com
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WOC PREVIEW
World of Concrete education program offers something for everyone Here are a few examples of what WOC 2017 has on tap:
90-MINUTE SEMINARS Change Orders & Claims – Winning the Battles Without Losing the War TU101 Tuesday, 8:30am - 10am
LUNCHEONS & FORUMS Steel-Fibre Reinforced Concrete THBSL Thursday, 11:30 am – 1:30 pm
HANDS-ON TRAINING SESSION Surveying with Total Stations - TUSTS1 Tuesday, 8 am – 12 pm Basics of Surveying for Beginners
4-HOUR CERTIFICATES & SEMINARS ICRI Slab Moisture Testing Technician – WE406 Wednesday, 8 am – 12 pm Scott Tarr • WECRT Moisture Testing Written Exam • WERCE Recertification Written Exam Wednesday, 2 pm – 3 pm • THRPE Moisture Testing 1-Hr Perf Exam Thursday, 12 pm - 5 pm • Attendees must be pre-approved for all ICRI Exams
Surveying with Total Stations – WESTS1 Wednesday, 8 am – 12 pm Advanced Surveying
BREAKFAST WITH THE EXPERTS Tuesday, Wednesday & Thrusday, 6:45 am – 7: 45 am TWTBE1, TWTBE2
3-HOUR SEMINARS Increasing Jobsite Productivity – MO25 A Fifteen-Point Program Monday, 1pm - 4pm
INTERACTIVE WORKSHOPS & LIVE DEMONSTRATIONS Train the Trainer: Fall Protection TUFPT Tuesday, 8 am to 12 pm
TO
HOOVER DAM & BYPASS TOURS HDS - Sunday, 12:30 pm – 5:30 pm HDF - Friday, 12 pm – 5 pm
MAXIMIZE
Make tighter turns, cut smoother grades, and get the most out of your machine. This revolutionary system features our advanced
YOUR MACHINE
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with
MC-MAX technology
3D-MC MAX CONSTRUCTION SOLUTIONS topconpositioning.com/MAX
46 / DECEMBER 2016 OnSite_Topcon_Dec.indd 1
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OnSite_W On-site M
ACCEPT NO SUBSTITUTE TOOLS & EQUIPMENT • 100+ SEMINARS • LIVE DEMOS • OUTDOOR ACTION ARENA
This is World of Concrete—the absolute center of the concrete and masonry industries, and home to everything heavy. See and try the latest offerings from 1,400+ of the industry’s top manufacturers. Pumps, mixers, trucks— everything big will be on display and on the job in the popular Outdoor Action Area. Get practical education, jobsite training and professional certification in Concrete Fundamentals, Business Management, Safety & Risk Management and more. And connect with a strong network of peers, suppliers and solutions providers from across the heavy equipment and concrete industries.
HEAVY EQUIPMENT UNITES AT WORLD OF CONCRETE. Register and reserve your place today.
»www.worldofconcrete.com OnSite_WorldConcrete_Dec.indd ONS_DEC16_LAZ.indd 1 On-site Magazine WOC Ad47 Heavy Equipment.indd 1
JANUARY 17-20, 2017 SEMINARS: JANUARY 16-20 LAS VEGAS CONVENTION CENTER LAS VEGAS, NV, USA A selected participant in the International Buyer Program
2016-10-06 2016-12-05 3:24 PM 9/29/2016 11:47:249:38 AMAM
• Competitions & Challenges • Parking • WOC Certification/Training Area
CONCRETE REINFORCEMENT
WORLD OF MASONRY CONCRETE MASONRY PRECAST
World of Concrete
THE PRODUCER CENTER
• Skywalk between Gold Lot and North Hall
GOLD LOT
Westgate Hotel & Casino
• Walkway Between Westgate & North Hall
• Badged Entrance Only
• Aisles N200-N3200 • The Producer Center • World of Masonry • Precast • Concrete Masonry • Concrete Reinforcement
NORTH HALL
Escalator
• World of Concrete Seminars • Meeting Rooms N252-N264 • CIM Auction, N262
OUTDOOR EXHIBITS & DEMONSTRATIONS • Aisles O30000 - O32300
Drop Off & Pick Up
TFC
Monorail Station
Badge Pickup (Mon-Fri)
• Walkway Between Central and South Halls
• Aisles C3000-C7100 • Material Handling
CENTRAL HALL
NORTH MEETING ROOMS UPPER LEVEL
LOBBY
World of Concrete
Escalator
Hoover Dam Door 9 Pick-Up
• Badge Pickup (Mon-Fri)
• Luckys Restaurant
GRAND CONCOURSE
• Meeting Rooms N101-N120, N201-N264 • World of Concrete Seminars • Press Room (N250) • Press Conference Room • Show Office (N245) • MCAA Office (N215) & Sessions (N208-N212) • Education Office / Speaker Ready Room
MAIN & UPPER LEVEL MEETING ROOMS
January 17-20, 2017; Seminars 16-20 Las Vegas Convention Center, Las Vegas, Nevada www.worldofconcrete.com
rative Deco es & urfac rete S
olitio
n
Drop Off ONLY
• Aces Restaurant
Renaissance Hotel
Main Registration (Sun-Fri) • 2018 Rebook Office • International Business Center
• Meeting Rooms S219-S223 • Exhibitor Meeting Rooms • Luncheons & Forums
SOUTH HALL MEETING ROOMS, LEVEL 2
• Aisles S10100-13500 • Concrete Repair and Demolition • Concrete Surfaces & Decorative
SOUTH HALL, LEVEL 1
CONCRETE SURFACES & DECORATIVE PAVILION • Aisles O40000-O41000
Conc
Dem ir & Repa crete
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WOC 2017
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WOC PRODUCT PREVIEW
REMOTE-CONTROLLED DEMOLITION The Brokk 280 remote-controlled demolition machine offers increased power, and includes the all-new SmartPower electrical system. It features a 20 ft. (6.2 m) reach and weighs 6,945 lbs. (3,150 kg). By generating as much as 25 per cent more breaking performance – a combination of impact power and flow frequency – over its predecessor, the Brokk 280 delivers a significant boost in productivity. Beyond packing a harder punch and knocking out more breaker blows per minute, it features improved maneuverability with softer, smoother movements. www.Brokk.com
COMPACT LIGHT TOWER Chicago Pneumatic’s CPLT V5+ HiLight LED light tower offers a heavy-duty polyethylene canopy for rugged durability and is designed to withstand the most extreme elements and working conditions. The canopy coupled with the light tower’s compact size, ease of transportation, safety features and lighting performance makes it a great solution on any jobsite. The CPLT V5+ offers high performance and luminosity with four LED lamps that are 350 watts each. With a 28-gallon fuel tank, it is capable of 150 hours of operation with all four lamps before refueling. www.cp.com
PRODUCTIVE COMPACT LOADERS The M2-Series compact loaders from Bobcat Company offer a variety of performance, operator comfort and visibility enhancements to increase operator productivity and provide enhanced machine uptime protection. Cab comfort is enhanced with an automatic ride control option and new front and rear cab isolators, door seals and side screen dampers to reduce vibration and noise. A redesigned top window improves visibility with a 34 per cent increase in open area. This is beneficial when loading material into a high-sided truck. Also available is an optional side lighting kit for increased visibility when working at night. A new reversing fan option allows loader operators to temporarily reverse the cooling fan direction – for several seconds – to blow dust and small debris from the radiator and rear screens. This helps minimize downtime and reduce the cooling area cleaning frequency. www.bobcat.com
PRECISION PLACEMENT The Allen AT14S swivel dump power track concrete buggy delivers excellent performance and maneuverability. Equipped with a 90-degree dump angle and 180-degree pivoting dump this buggy can place your material exactly where you need it. This unit is also equipped with a powerful 20 hp Honda GX630 engine that has all the power and torque needed to carry a 1,785-lb payload in a 14-cubic ft. bucket. www.alleneng.com
AUTOMATIC TRANSMISSION BOOSTS PRODUCTIVITY Featuring a low-ratio creeper gear, the Mack mDRIVE HD 13-speed automated manual transmission (AMT) helps boost customer productivity thanks to improved performance and reduced weight. Now standard on Mack Granite models, it is available in direct or overdrive configurations, Mack mDRIVE HD 13-speed offers a low-reduction creeper gear ratio designed for easier startability on steep grades or when the truck is carrying a heavy load. This improved startability allows customers to select a faster rear axel ratio. The faster ratio decreases engine rpm at highway speeds, saving fuel as the truck travels between job sites. www.macktrucks.com
ENHANCED CONCRETE TRANSIT MIXER Putzmeister America, Inc. has enhanced the design of both of its concrete transit mixer models, the Pro Series and the Bridge Maxx Series. The updated models offer improved ease-of-operation, updated controls, and enhanced engineering. For improved operator ergonomics and functionality, additional features were added throughout the mixer. A handle has been added to the side of the main swing chute for easy operation. Along with a redesigned ladder, a longer handrail on the upper ladder provides for improved access to the work platform. Significant improvements were also made to the mixers’ control systems. The rear and in-cab control boxes now conform to industry standards, as do the hydraulic and air valves. www.PutzmeisterAmerica.com on-sitemag.com / 49
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The Off
WOC PRODUCT PREVIEW
MINI HYDRAULIC EXCAVATOR
PAVE FROM THE LEFT OR RIGHT GOMACO’s 3300 multi-application slipform paver offers extreme steering capabilities with Smart Leg and Track Positioning. It also features a smart telescoping mold mounting system for paving from the right or left side of the paver. The 3300’s extreme steering is accomplished with rotary sensored slew drives on the tracks and G+ controls. Its two front legs are mounted on the parallelogram-style pivot arms and rear leg has power slide for positioning. Smart leg positioning is accomplished with smart cylinders and the G+ digital control system along with Smart Track Rotation to provide the G+ control system with the exact location and position of the tracks and reference to their straight ahead line. www.gomaco.com
ROTATING TELESCOPIC HANDLER The MRT 2550 Series II rotating telescopic handler from Manitou, replaces the MRT 2540, updated with longer stabilizers, increased load capacities at higher lift heights, and more capacity when fully extended. It will lift up to 11,000 lbs. (5,000 kg) with a maximum lift height of 81 ft. (24.7 m). Powered by a Mercedes 156 hp diesel engine, this unit is accompanied by adjustable stabilizers, 3-in-1 work mode capability, E-RECO attachment recognition, unique load monitoring system, 360 degree continuous rotation, optional remote control access, and extra cabin comfort. It operates in telehandler, winch, and platform modes. www.manitou.com
The Cat 304.5E2 mini hydraulic excavator is the first model in the Xtra Tool Carrier (XTC) lineup. Built on the reliable E2 platform, this unit offers the same level of quality, performance, and operator comfort expected from a Cat mini hydraulic excavator. In addition, the machine has an innovative skid steer coupler interface for added versatility and work tool integration. This manual coupler allows for use of compact loader tools, including: generalpurpose bucket, multi-purpose bucket, forks, dozer blade, brooms, power box rakes and trenchers. Coupler operation is controlled through a flick of the XTC switch on the right-hand console in the operator station. The standard right-hand joystick then becomes your loader. www.cat.com
DRILL FOUR WAYS Minnich Manufacturing’s A-1 Series drills can be configured to drill four ways – horizontally, vertically, into a wall, or six inches from a corner – eliminating the need to purchase additional equipment or conversion kits. The A-1 Series makes repositioning easy with the industry’s only unity that can fit into 48-, 36-, 30-, or 24-in. cutouts with the wheels on. All models in the lineup feature adjustable drill height and depth. The pistol grip makes operation easy and minimizes dry firing, which can lead to increased maintenance and repair costs, and a shorter drill lifespan. www.minnich-mfg.com
EXTENDED RUN TIME Doosan Portable Power’s G250, G50 and G70 mobile generators incorporate numerous innovations based on customer input and are aimed at improving operator experience. The newly packaged Tier 4 Final compliant generators offer improved fuel efficiency, extended runtimes and the industry’s lowest sound levels. These mobile generators are equipped with Doosan-built, high-performance engines that deliver increased fuel economy, unrivaled motor starting capability and reliable operation in extreme conditions. www.doosanportablepower.com
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ENHANCED BREAKOUT FORCE The Gehl RT250 GEN:3 track loader offers a rated operating capacity of 2,500 lbs. (1,134 kg) at 35 per cent tipping capacity. Built from the ground up with a dedicated chassis, this loader features enhanced breakout forces, and optimized radial lift arm, and suspension seat with adjustable arm rests. It has an overall operating height of 14 ft., 7 in. (4.45 m) and has been newly designed with the industry exclusive cab-to canopy fold-up-door. This door provides versatility for multiple applications as the operator can now adjust to his or her preference. The track loader also has IDEALTRAX, an automatic track tensioning system, where tracks are automatically tensioned when the engine is started and during operation, eliminating the need for weekly tension checks. www.gehl.com
2016-12-05 9:38 AM
OnSite_M
The Office of Experience – 233 N. Michigan Avenue, Suite 1710 – Chicago, IL
Geared up for any job. The Mack® mDRIVE™ HD is the automated manual transmission that carries everything and stops at nothing. Now with 13- and 14-speed creeper gears and weighing in at 237 pounds less than the competition, mDRIVE™ HD is built to take on heavy-duty jobs with maximum performance and efficiency. STOP BY BOOTH C5103 AT WORLD OF CONCRETE January 17–20, 2017 | Las Vegas Convention Center
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WOC PRODUCT PREVIEW LONG SERVICE LIFE Wacker Neuson’s newest motors are part of the HMS flex shaft vibration system. The M motors, M1500 and M2500, combined with a variety of heads and shafts, provide optimum concrete consolidation for every type of application. The new M motors are lighter weight than previous models and offer extremely long service life with carbon brushes that last up to 500 hours of run time. Also contributing to these rugged motors’ long life is the double insulated construction with increased thermal capacity and the dual air filter. www.wackerneuson.us
TWO POWERFUL SOLUTIONS
To see more features and learn more visit www.husqvarnacp.ca or call your local representative. youtube.com/husqvarnaCP
The GBH18V 1” SDS-plus EC Brushless Rotary Hammer from Bosch provides the power and torque needed to drill and chisel materials that range from concrete to steel. This tool delivers 1.9 ft.-lbs. of torque, and only weighs 7.7 lbs. The ergonomic Lshape design offers great horizontal power transmission. Combined with a Bosch 6.0 Ah Lithium-ion battery, this is a power tool that will drill longer and hit harder than bigger tools with more weight. It offers 2x motor life and less maintenance comes with its lighter weight and the reduced-size Bosch EC brushless motor. www.boschtools.com
HIGHER LIFTS WITH G-SERIES
Husqvarna’s all-around power cutters have you covered, no matter the application. The K 760 and the more powerful K 970 power cutters are the perfect solution for most jobs. The K 760 boasts the lowest vibrations, below 2.5 m/s2, on the market and both feature a fuel-sipping X-Torq® engine. The K 970 features a more powerful 6.4 hp engine, perfect for highway or demolition work.
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POWER AND TORQUE
HusqvarnaCP_Americas
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Contractors that understand the value of compact equipment can now expect even more power, productivity and uptime on the job with John Deere large-frame G-Series skid steers (330G, 332G) and compact track loaders (331G, 333G). The biggest improvements on the large-frame G-Series is the refined vertical-lift loader boom design that rises higher, reaches farther and lifts more for quicker and easier loading. Height to hinge pin is 11 ft., enabling operators to easily load dump trucks, feed mixers, fill hoppers and everything in between. Operators will also appreciate the new lift path that extends and additional six inches from the machine. www.JohnDeere.com
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Software By Jacob Stoller
Software for safer workplaces Dedicated safety software helps contractors cope with the many tasks of maintaining a comprehensive safety program
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ne of the most ubiquitous requirements for contractors in all sectors of the industry is fulfilling their duty to keep workers safe. The issues are widely publicized, and training resources and safety tools are readily available. Maintaining a comprehensive safety program, however, can be an administrative nightmare. The challenge is tracking and maintaining the large amounts of information that such a program requires. Most contractors rely on improvised systems based on paper, spreadsheets, hard copy manuals, and phone calls to manage their information flow. As a result, many are struggling just to meet minimum regulatory requirements. The shortcomings of these default methods are the same deficiencies that have driven many contractors to adopt dedicated software for other aspects of their business such as accounting and customer relationship management. Symptoms include inconsistent records, inaccessibility of key information at jobsites, lack of follow-up for incidents, difficulties with auditors, and administrative overload. Safety management software (SMS) systems are no magic bullet. What they can do, however, is help companies that are committed to maintaining safety programs do so more efficiently and effectively. “Most companies that come to us have adopted a safety culture,” says Linda Findlay, director of business development and client services at Vancouver-based Spence Software. “They just want a better way to manage it, and make sure everything is within their standard for compliance.” The baseline for safety programs is determined by minimum federal and provincial requirements, typically resulting in a thick policy manual kept in a binder.
Often, that binder never sees the light of day on a jobsite. “If you give a huge binder to a project supervisor, the odds of them actually looking at it are slim to none,” says Findlay. Software puts safety policies on-line, and gives supervisors the information they need in manageable chunks. If a safety violation is suspected, the supervisor can not only check policies and view past incident reports, but they can also see notification records, minutes from safety meetings, or an employee’s safety certifications. When problems are discovered, software can also trigger follow-up actions, ensuring that deficiencies are addressed.
MAKING WORKPLACES SAFER Software doesn’t just make safety programs easier – it improves them too. Comprehensive tracking helps contractors move from fire fighting mode, where the focus is on covering themselves for government auditors, to a proactive stance where they mitigate circumstances that lead to injuries. “Our software allows you to log the root cause of an incident,” says Matthew Wall, product manager at Calgary-based SafetySync. “Then you can run reports. You might learn that a number of injuries occurred because people didn’t know the correct procedures for operating certain pieces of equipment. So you can then build a program to tackle those shortcomings.” Another proactive measure is connecting the dots between equipment maintenance and potential hazards. “If you didn’t change your oil, and you engine has seized and you’re in the middle of nowhere, that’s a safety concern,” says Findlay. “So we include the asset management side as well.”
IMPLEMENTATION Technology adoption has never been easy
in the construction industry, and an, ‘if it ain’t broke don’t fix it’ attitude still prevails. When working with clients, Findlay starts with a small group of key stakeholders, and keeps the changes as manageable as possible. “We never see two clients that are exactly the same, even within a sector like road construction,” says Findlay. So we look to replicate the programs they already have. When somebody fills out an electronic form, they will be looking at the same questions that they had before.” Pushback from the jobsite is also an issue. “Workers might think, ‘are you doing this because we’re doing a bad job at safety?’” says Wall. “But that’s clearly not the case.” SafetySync offers a novel solution that injects a little fun into the program. The software supports a rewards program where employees qualify for gifts from a catalogue based on meeting safety requirements. Wall hopes wider adoption of software will lead to better portability of workers’ safety data. “Construction workers tend to go from project to project with different employers,” he says. “So it’s a pain for them to have carry a wallet full of certificate cards.” Perhaps the greatest long-term incentive, however, is that when safety is addressed proactively, it is closely linked with continuous improvement. Tightening up processes to make workplaces safer, therefore, tends to have a spinoff effect where those processes also become more efficient. “Safety software, by its nature, tends to improve workflow patterns, communication, and accountability,” says Findlay. Jacob Stoller is principal of Torontobased consultancy StollerStrategies. Send comments to editor@on-sitemag.com.
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ADVERTISERS’ INDEX & WEBSITES Adrian Steel..................... www.AdrianSteel.com..................................................14
Kubota Engine................. www.KubotaEngine.com/CanadaSuccess............. 25
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Freightliner...................... www.Freightliner.com/122SD........................................2
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of Alberta........................ www.UFA.com................................................................ 27 Volvo.................................. www.volvoce.com/ExFactor........................................17 Western Star................... www.westernstar.com................................................. 34 World of Concrete......... www.worldofconcrete.com.........................................47
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RISK By David Bowcott
Is Canada becoming the world’s most advanced asset management economy?
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o matter where I go these days it seems like every economy, both governments and corporations, are toying with new ways to design, build and operate their physical assets. The over-arching trend behind this long-term capital concept is Asset Management. Owners are tired of the traditional fragmented approach used to create and run their nonhuman assets, and they are experimenting with new procurement and operations strategies in order to optimize every asset’s performance. It isn’t happening everywhere and in every sector, but the momentum is moving forward unabated, and is spreading to new countries and industry sectors everyday. When it comes to helping owners build and operate their assets more efficiently, Canada is punching above its weight. Our federal, provincial and municipal governments, as well as some key private sector industries, are driving towards a total cost of ownership model that is truly asking the question: “what is the most cost effective way for me to design, build and operate this asset over the projected life of the asset?” Because this question has been asked more and more over the past 20 years in Canada, we have created quite a laboratory of asset management. Several sectors of our economy have become global leaders in long-term asset development and management.
HERE ARE A FEW SECTORS WHERE CANADA IS, OR IS BECOMING, A WORLD LEADER: Government Authorities – Much of the Asset Management adoption has happened within our provincial governments. Several of our leading provinces (like British Columbia, Ontario, Alberta, and Quebec) are
considered world leaders in the long-term asset management community. And with the Federal governments formation of P3 Canada and the most recent initiation of a Canadian Infrastructure Development Bank, it seems that leadership brand will only grow. Equity – Several of our pension funds and life insurance companies are amongst the top investors in long-term asset management investments. Canadian Pension Plan, Ontario Teachers’ Pension Fund, Caisse De Depot et placement du Quebec, and several other pension funds and life insurers are global leaders in the infrastructure investment market (PublicPrivate Partnerships or P3s). Contractors – Our Canadian contractors have been exposed to massive change over the last 20 years given the introduction of new delivery models to the Canadian economy. In the early 2000’s our economy created a substantial pipeline of work and attracted the world’s top global players from European and Asian Pacific communities. Exposure to so many global perspectives has given contractors resident in Canada a view into the future. Several of these contractors are building their companies for the future and are hoping to help owners gain maximum efficiency out of their physical assets. Debt Advisors – Our financial advisors, lender technical advisors, lender insurance advisors, and rating agencies are amongst the best. Combined with the sophistication of our capital we have what several in the world consider to be the world’s leading project finance community. Consultants – Our management consultants, lawyers, and risk advisors/brokers have all gained tremendous experience over the years. Several within this community
have gone on to take up global leadership roles within their companies, which is a testament to our collective leadership position within the asset management community globally. Technology – Most recently Canada is beginning to develop a tremendous concentration of high-level talent that is focusing on asset management technology. Whether it is new construction materials, project management software, design software, counter-party risk solutions, or wearable technologies for construction and asset management, Canada is starting to harness the high-tech talent we have in order to develop the asset management technologies of the future.
WHAT’S IT GOING TO TAKE? Bottom line, Canada is on the verge of becoming the world’s best builders and operators of physical assets and all levels of government. Canadian domiciled corporations should be working together to better brand what we appear to be turning into. If we manage to more effectively collaborate around this very real opportunity, we could make construction and asset management a very large component of our future GDP growth. Further by building our assets better now, we could attract the best and brightest globally to our construction and asset management companies. Collaboration will be key to success as a united voice and consistent message is vital to grow our global brand in this sector. David Bowcott is Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions. Please send comments to editor@ on-sitemag.com
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TOUGH WINTER AHEAD? WE WOULDN’T HAVE IT ANY OTHER WAY.
Exceptional comfort and an easy to maintain Kubota Tier IV Diesel engine combine for an impressive piece of equipment in Kubota’s SSV Series. New side lights expand the operator’s visibility on the job site, and the roll up door and wide operator area make for a more alert and productive work environment during those long cold jobs. All of a sudden, winter doesn’t seem so bad.
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CONTRACTORS & THE LAW By David Miachika and Alexander Bjornson
Ledcor Construction vs. Northbridge Indemnity Insurance Co.: Three takeaways for owners and contractors
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uilders’ Risk (or Course of Construction) insurance policies are commonplace on construction projects. Although they provide coverage for physical loss or damage to ongoing construction works, these policies typically include a “defects” exclusion for faulty or defective workmanship, materials or design. The meaning of a common defects exclusion for the “cost of making good faulty workmanship” was explored in the recent Supreme Court of Canada (SCC) decision of Ledcor Construction Ltd. vs. Northbridge Indemnity Insurance Company. Ledcor was the construction manager on an office tower project. Near completion, Bristol Cleaning was hired as a subcontractor to clean exterior windows. Bristol used improper tools and methods, which scratched the windows, resulting in an estimated $2.5 million of damage. Ledcor and the owner claimed for window replacement costs under a Builders’ Risk policy placed to cover the project, but were denied coverage on the basis of a defect’s exclusion on the “cost of making good faulty workmanship.” The issue was whether the clause excluded the cost of replacing the windows or only excluded the cost of redoing the faulty work. The SCC unanimously held that only the cost of redoing the faulty cleaning work was excluded and thus replacement costs should be covered. This decision follows the trend in Canada of interpreting such policies to provide broad coverage for losses and narrowly construe exclusion clauses. This is an important decision for those in the construction industry who seek coverage for losses during construction, and offers three major takeaways for owners and contractors:
BUILDERS’ RISK POLICIES ARE MEANT TO PROVIDE BROAD COVERAGE These types of exclusion clauses were tradition-
ally broadly applied by the courts, resulting in narrow coverage for damage. More recently, Canadian courts have returned to first principles of interpretation that focus on the ordinary meaning of the policy language and the reasonable expectations of the parties, resulting in broad coverage for such losses. Here, the Court stated the purpose of Builders’ Risk policies is to provide broad coverage for construction projects, and with it “certainty, stability, and peace of mind.” The Court found this purpose is furthered by an interpretation of the exclusion clause that only excludes the cost of redoing the faulty work itself. A broader interpretation would undermine the ordinary meaning of the policy wording as well as the purpose behind the policies. In considering the parties’ reasonable expectations, the Court noted the parties expect to receive broad coverage for such losses in exchange for paying relatively high premiums. Despite containing various exclusions, “contractors believe indemnity will be available in the event of an accident or damage on the construction site arising as a result of a party’s carelessness or negligent acts.”
CONTRACTUAL SCOPE OF WORK MAY IMPACT COVERAGE The Court also considered the scope of the parties’ contractual obligations. Here, Bristol’s obligation was limited to cleaning the windows, so only the cost of re-cleaning the windows was excluded under the policy. Had Bristol been responsible for installing the windows and the windows damaged in the installation process, reinstallation would likely have been excluded by the exclusion clause. This reasoning supports a common practice in the construction industry, whereby significant portions of the work are parcelled out to subcontractors. As such, general contractors who hire subcontractors to perform distinct portions of the work, will have broader
coverage for damage caused to the project by those subcontractors.
INSURANCE POLICY DISPUTES MAY SEE INCREASED NUMBERS OF APPEALS In a previous SCC decision, the Court made clear that appeal courts should only overturn contractual interpretations where the interpretation contained a “palpable and overriding error.” In other words, where parties litigate the interpretation of a contract, any appeal court should be extremely deferential to a trial judge’s decision. However, the Court clarified where an appeal involves the interpretation of a standard form contract (such as a Builders’ Risk policy, which has not been negotiated), the issue has precedential value as there are typically no factual issues impacting the policy interpretation. Such a decision will be subject to the wider standard of appellate review, namely “correctness.” This means far more appeals are likely to reconsider the finding of a trial court on the interpretation of a standard form insurance policy. One final point of importance – the “faulty workmanship” exclusion considered in Ledcor is less commonly used in current Builders’ Risk policies as graduated defects exclusions such as the LEG and DE forms are more common. However, the Court’s clear directive on the purpose of Builders’ Risk policies and the reasonable expectations of the parties should only enhance the finding of coverage for construction losses under current policy language. This article is provided for general information only. It may not be relied upon as legal advice. David Miachika is a partner at Borden Ladner Gervais (BLG). Alexander Bjornson is an associate at BLG. The authors thank Morgan Baker, articling student, for her assistance. Send comments to editor@on-sitemag.com.
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