On-Site Magazine December 2013

DECEMBER 2013

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TIME TO TERMINATE? PG.54

Going the distance 2014 Forecast

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ONCR ETE O N SI T E 2014 W OC P R

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PICKUP TRUCKS REVIEW PG.23

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VOLUME 57, NO.7 / DECEMBER 2013

COVER STORY 18 2014 Construction Forecast While the rest of Canadian industry treads warily in the face of a troubled global economy, the construction sector is going the distance.

DEPARTMENTS 5 Comment

23

Looking ahead

8

News Industry news

16 Construction Statistics The latest news in building permits and construction employment

30

52 Funny Photo Funny photo contest

COLUMNS 50 Risk Is there a need to revamp surety capacity metrics?

54

54 Contractors and the Law To terminate, or not to terminate?

51

Index of Advertisers

features 23

2014 Pickup Trucks Review Check out whatâ&#x20AC;&#x2122;s new in 2014 and 2015 full-size pickup trucks.

35 CONCRETE ON-SITE 30

Preparation holds key to success Despite harsh northern climate, joint venture constructs award-winning $237M hospital and residential care facility in northern B.C.

42

World of Concrete Preview

36

CRMCA Column

38

Material Advances

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COMMENT

Looking ahead

D

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ays are short, temperatures are low and eggnog is suddenly available everywhere.

I think it’s safe to say: 2013 is officially winding down.

It has been a pretty solid year for the Canadian construction industry. Large infrastructure projects have been key drivers for the sector. According to Jim Barnes’ much anticipated 2014 Construction Forecast we can expect infrastructure to lead the balance sheets again next year as well.

Where major projects in 2013 involved mainly institutional buildings that focus will begin to shift towards transit, pipeline and power generation in 2014. (For more on what to expect in the New Year, flip to page 18 for the complete forecast.)

In the publishing industry, we always work a couple months ahead, trying to predict what will be timely and interesting when the next issue hits your desk. This has rarely been more evident than in this particular issue of On-Site. Beyond the Construction Forecast, we also have truck guru Bill Roebuck’s 2014 Pickup Truck Review (page 23) and our annual World of Concrete Preview (page 42).

Skills shortages, foreign competition and the development of new project delivery models are keeping contractors on their toes, but there’s a lot of excitement about the strength and vitality of Canada’s construction sector heading into the New Year.

Although we have spent a lot of energy in this issue looking ahead, I would be remiss if I didn’t take the opportunity to thank the many people

that made it possible for us to put this magazine out month after month in 2013.

As the very nature of journalism evolves to a multimedia platform, we have added online news, e-newsletters, videos and social media to our regular lineup of editorial tools. As such, we are more and more reliant on our industry partners to help us find, report and develop relevant articles, reports and news that helps you, the reader, stay informed, learn about the latest equipment and technologies—and ultimately grow your businesses.

You have no doubt heard that famous saying: “It takes a village…” Well the same is true for a construction journal. It takes the input of an entire industry to publish a relevant and timely construction magazine.

We are fortunate to have a host of industry leaders, construction associations and readers that regularly lend their voices to the pages of On-Site. For that, our whole team is eternally thankful.

From our family to yours, Happy Holidays!

Corinne Lynds / Editor CLynds@on-sitemag.com

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CONTRIBUTORS

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

MEET OUR CONTRIBUTORS FOR THIS ISSUE

PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com

JIM BARNES / Contributing Editor

ASSISTANT EDITOR | Patrick Callan (416) 442-5600 x3524 PCallan@on-sitemag.com

“

While the rest of Canadian industry treads warily in the face of a troubled global economy, the construction sector is still on the fast track.

Some researchers predict new construction investment in Canada will exceed $300 billion next year, up from this year’s net of around $284 billion.

CONTRIBUTING EDITOR | James A. Barnes ART DIRECTOR | Melissa Crook (416) 442-5600 x3260 MCrook@bizinfogroup.ca ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@bizinfogroup.ca

”

PRODUCTION MANAGER | Barb Vowles 416-510-5103 BVowles@bizinfogroup.ca CIRCULATION MANAGER | Selina Rahaman (416) 442-5600 x3528 SRahaman@bizinfogroup.ca

DAVID BOWCOTT / Senior vice-president, national director large/strategic accounts, construction and infrastructure services, Aon

“One of the most critical forms of guarantee (as

well as one of the oldest) is the surety bond. These bonds can be used at the tender stage to secure the contractor’s bid to the owner, and they can also be used once the contract has been awarded to the contractor to secure performance.

”

MATTHEW SWANSON / Associate lawyer at Borden Ladner Gervais LLP (BLG)

“

Unilateral termination has significant risks and should be carefully considered. Improper termination may lead to significant damages.

”

Published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. 80 Valleybrook Drive, North York, ON M3B 2S9 BIG Magazines LP Executive Publisher | Tim Dimopoulos Vice-President of Canadian Publishing | Alex Papanou President of Business Information Group | Bruce Creighton SUBSCRIPTION RATES Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues.

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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.

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INDUSTRY NEWS

CCIL concerned about lack of government oversight in dozens of Ontario construction projects The Canadian Council of Independent Laboratories (CCIL) is urging the Ontario government to require that all public infrastructure projects are independently tested and inspected.

Arising from concerns in recent weeks over the Herb Gray Parkway—a $1.4billion highway project under construction in the municipalities of Windsor, LaSalle and Tecumseh in Ontario—where hundreds of girders had to be scrapped because of safety concerns, the CCIL warns there are dozens of other road and bridge construction contracts in which the provincial government entered into over the last few years that have not required any independent testing or inspection.

According to the CCIL, taxpayers may be faced with the costs of repairing or replacing this infrastructure much earlier than expected, and public safety could be in jeopardy.

“As we’ve seen in the case of the Herb Gray Parkway, the provincial government has no direct way of knowing whether the materials and construction methods used in these projects meet standards,” said

Derwyn Reuber, executive director of CCIL. The CCIL said under new types of Alternative Financing and Procurement (AFP) arrangements used by the Ontario

Aecon, ACS Dragados awarded $177M contract for Toronto LRT project

Ministry of Transportation (MTO), such as design-build and performance-based contracts, contractors are typically responsible for warranting or maintaining the infrastructure for a period of time.

However the warranty periods are typically much shorter than the expected life of the infrastructure. “When the maintenance or warranty period is up, the contractor is off the hook and any further problems become the responsibility of government,” said Reuber.

Earlier this year, the MTO released a list of 39 design-build projects scheduled for 2013-2014 and 2014-2015. The projects include work on hospitals, colleges and rapid transit systems.

“How many of these contracts are exempt from independent testing? We don’t know, but we worry that government is proceeding to spend billions of dollars on infrastructure without the proper quality assurance checks,” added Reube.

transit lines in Toronto—The TorontoYork Spadina Subway Extension and the UP Express elevated spur line connecting the Georgetown GO Transit line to the Toronto Pearson

Metrolinx has awarded a

International Airport—is the lead of

$177-million tunneling contract for

the joint venture.

the construction of a section of the

The Eglinton Crosstown LRT

Eglinton Crosstown Light Rail

project is scheduled for completion

Transit (LRT) project in Toronto

in the second quarter of 2016.

to a joint venture between Aecon/ACS Dragados Canada Inc. The project involves building two parallel 6.5m diameter tunnels over a distance of 3.25 km and construction of two emergency exit buildings.

Aecon, who is currently working on two other

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INDUSTRY NEWS

KPMG's survey shows positive outlook for construction industry The majority of companies in the global engineering and construction sectors are optimistic about growth across the industry, according to KPMG’s Global Construction Survey 2013: Ready for the Next Big Wave.

In Canada, the majority of respondents reported a backlog increase of more than 10 per cent stable profit margins in 2012 when compared to 2011. They also showed stability in 2013 volume of orders and anticipated/proposed margin rate when bidding in current tenders in 2012.

Overall, the survey found more than 50 per cent of respondents from the Americas, Europe, the Middle East, Africa and Asia-Pacific regions said their companies experienced a backlog increase of at least five per cent from 2012 to 2013.

Although margins are not rising at the same rate as backlogs, 80 per cent of respondents said their margins will either remain stable or increase more than two per cent in the same period.

While the survey shows general

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optimism across the construction industry, there are still barriers to growth.

The industry is heavily reliant on national governments’ infrastructure plans for future growth, with two-thirds of respondents citing this as the single most important market driver. And risk management remains a challenge.

Heavy investments over the past decade are paying off, with the majority of respondents saying their risk management programs have improved project performance. However, 77 per cent claim underperforming projects are the result of project delays, poor estimating practices and failed risk management processes.

A C

T S

W in yo S

Champlain Bridge underwent emergency repairs A massive support beam was installed on Montreal’s Champlain Bridge after a significant crack was found on Nov. 12 following regular inspections of the girder reinforcement. Two traffic lanes above the girder were closed.

The first phase of installing the beam involved transporting the five sections of the steel beam to the bridge approaches.

The beam was assembled near the bridge and then moved onto the bridge where two cranes put it in place just above the girder that required reinforcement.

The support beam was then installed above the existing girder and attached at the piers. Large steel rods anchored to the support beam were lowered beneath the girder in order to fully support it.

Once this girder was secured, traffic lanes were reopened.

The second phase consists of installing a steel modular truss from below, which will be attached to the span's two piers.

This grating will also support the girder.

Installation of the permanent support (modular truss) will begin in the spring of 2014 because of the difficulty of working in winter conditions.

at www.HCSS.com/On-Site

© fre M Pl

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INDUSTRY NEWS

Irish eyes smile on B.C. construction industry Recruiting campaigns in Belfast, Dublin net nearly 500 skilled trades workers PATRICK CALLAN For the second time this year the British Columbia Construction Association (BCCA) has returned from a successful recruiting mission in Ireland.

Just shy of 500 jobs were offered following two job fairs—Belfast on Oct. 31 and Dublin on Nov. 2.—which saw a total of 2,800 people turn up looking for work and twenty-seven Western Canadian companies on hand.

The recent campaign, and the one this past March, are part of a larger effort

Manley McLachlan, president of the BCCA, said on this trip they were able to better match candidates with employers because of the strong relationship they have developed with the Irish government.

you’ve got a ticket in heavy “ Ifduty mechanics you can name your own price.” to help curtail the immediate and longterm labour challenges Western Canada’s construction industry is facing. In B.C. alone, a staggering 20 per cent of students graduating from high school over the next five years would need to enter skilled trades to fill expected job shortages.

According to the BCCA, the job offers from the latest trip represent $33 million in “opportunity payroll”—a figure derived by multiplying the average wage of a construction worker by the number of total job offers. The BCCA also banked more than 3,500 resumes.

“We sent them job descriptions of what we were looking for and they provided a direct connection to their records of unemployed and people who have a desire to move to Canada,” he said.

Western Canadian employers were looking for all kinds of skills sets, from journey level ironworkers, to plumbers and pipefitters, right up to management positions. “If you’ve got a ticket in heavy duty mechanics you can name your own price,” added McLachlan.

Ireland is a natural fit to turn to for construction workers for three reasons:

culture, training and opportunity. “There’s a cultural connection that’s pretty real,” he said, recalling a conversation he had with the Canadian ambassador who estimated there is between five to six million Irish immigrants living in Canada.

In terms of training, the BCCA compared nine different trades in western Canada with the Irish trades training system and discovered there weren’t many gaps.

“In many ways the Irish curriculum is more intense than ours,” he said.

However, Ireland’s once booming economy—which saw a period of rapid growth in the late 1990s and early 2000s—has been slow to recover from the financial crisis of 2008. Seeing half built buildings and construction projects remains a common site in Ireland.

“We all heard about the Celtic tiger and how it literally fell off the cliff,” he said.

“There were about 160,000 Irish workers stranded when the economy fell apart.”

For Irish citizens interested in working in Canada, there are three different routes they can take. Those between the ages

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INDUSTRY NEWS

B.C. construction industry by the numbers! $83.6 billion—Value of current construction projects in B.C.

of 18-35 can get a one-time Canadian working holiday visa, which allows them to work here for two years.

The second option is through the temporary foreign worker program, which lets employers hire foreign workers on a temporary basis to fill immediate skills and labour shortages when Canadian citizens and permanent residents are not available.

There is also the provincial nomination program where candidates are nominated by a Canadian province or territory and then apply to Citizenship and Immigration Canada to become a permanent resident.

McLachlan said in addition to organizing the initial recruiting trips and connecting Irish workers with Canadian employers, the BCCA plays a central role in helping candidates navigate the immigration process towards becoming a full-fledged Canadian citizen.

And there is a good chance many will stay permanently. Especially with the amount of work B.C. has on the books: $278 billion in major construction projects, not including the 100,000 jobs that will be created by liquefied natural gas (LNG) projects over the next 30 years.

“The situation is pretty substantial,” said McLachlan. “The opportunities are huge if you’re an individual with a ticket in…pick a trade.”

$195 billion—Cost of proposed construction projects in B.C. 7.8%—Construction sector’s contribution to B.C.’s total GDP 9,500—Increase in B.C. construction jobs from June 2013 to July 2013 $1 trillion—Expected GDP benefits to B.C. by 2046 from five LNG plants 190,000—Employees in B.C.’s construction industry 54,500—Jobs opening in B.C.’s skilled trades by 2021 30,500—Construction jobs will be unfilled because of labour shortages by 2021 2 of 3—Workers in B.C.’s skilled trades over the age of 45 83%—Higher yearly wage of a B.C. construction worker compared to sales and service ( figures provided by the British Columbia Construction Association)

14 / DECEMBER 2013

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CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry

$ billions 8.2 7.8 7.4 7.0 6.6 6.2 5.8 5.4

Commercial building permits down

5.0

Canadian municipalities issued $1.4 billion worth of commercial building permits in September, down 0.2 per cent from August and the second consecutive monthly decrease. The decline was the result of lower construction intentions in a variety of commercial buildings, including office buildings, hotels and restaurants, retail complexes and warehouses. Gains posted in six provinces, led by Saskatchewan, failed to offset declines in the remaining provinces.

4.6 4.2

Seasonally adjusted

3.8 3.4 3.0

S

J 2008

J

2009

J

2010

Trend

J

2011

2012

J

S 2013

Note(s): The higher variability associated with the trend-cycle estimates is indicated with a dotted line on the current reference month and the three previous months.

Investment in non-residential building construction billion of dollars, seasonally adjusted 14.0

Investment in non-residential building construction up

13.0

Investment in non-residential building construction increased 4.4 per cent to $13 billion in the third quarter, following a 2.7 per cent decline in the second quarter.

The gain in the third quarter was attributable to the end of a construction strike in Quebec as well as increases in five other provinces, particularly Alberta.

12.0 11.0

10.0 9.0

III

I

2008

III

2009

I

III

2010

I

III

2011

I

III

2012

GDP: Construction holds strong Real gross domestic product rose 0.3 per cent in August, after increasing 0.6 per cent in July and declining 0.5 per cent in June.

The output of goods-producing industries grew 0.4 per cent in August, led by oil and gas extraction. The agriculture and forestry sector also increased. In contrast, manufacturing and utilities declined. Construction was unchanged.

I

III

2013

Real gross domestic product rises in August billion of chained (2007) dollars 1,600 15,80 1,560 1,540 1,520 1,500 1,480

All industries

1,460 1,440

Source: Statistics Canada

1,420

A 2008

J

A 2009

J

A 2010

J

A 2011

J

A 2012

J

A 2013

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2014 CONSTRUCTION FORECAST

Going the distance 2014 Forecast

W

BY JIM BARNES

hile the rest of Canadian industry treads warily in the face of a troubled global economy, the construction sector is still packing a punch.

Some researchers predict that new construction investment in Canada will exceed $300 billion next year, up from this year’s net of around $284 billion. “These are all high-water marks,” says Michael Atkinson, president of the Canadian Construction Association based in Ottawa, adding that the value of construction in Canada has more than doubled over the past decade.

Here is a summary of how it all breaks down.

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DESPITE ECONOMIC BUMPS IN THE ROAD AND REGIONAL DISPARITIES, CANADIAN CONSTRUCTION REMAINS FEISTY SECTORS STRONG Infrastructure: As a result of stimulus spending and long project life cycles, infrastructure has been the mainstay of Canadian construction.

The emphasis is now shifting from institutional work towards transit, pipelines and power generation, according to Construction Looking Forward, published by the Construction Sector Council (CSC) in February. The list of industrial projects, including mining and oil and gas, keeps on growing.

Work on oil sands and supporting infrastructure should hold steady, says CSC. “A further round of oil sands expansion is expected to start in 2016 and, by 2021, carry labour requirements about 20 per cent higher.”

The only non-residential market to lag consistently is roads, highways and bridges, following government stimulus packages in 2009 and 2010. But the demand remains.

“A report shows that more than 55 per cent of the municipal roads in this country need to be redone,” says Claude Dauphin, president of the Federation of Canadian Municipalities and mayor of the Borough of Lachine, Que. Residential: The homebuilding market, too, should stay on the rails despite an extended run. In October, Canada Mortgage and Housing Corp.’s fourth-quarter 2013 Housing Market Outlook, Canada Edition 1 predicted that next year’s total housing construction market would be stable due to strong fundamentals including employment growth and migration.

“In the new-home market, builders are nevertheless expected to limit the number of housing starts while inventories of unabsorbed units, completed and under construction, are drawn down,” notes Mathieu Laberge, deputy chief economist for CMHC in Ottawa.

There are well-known caveats. In October, a spokesperson for the Bank of Canada noted: “The elevated level of household debt and stretched valuations in some segments of the housing market remain an important downside risk to the Canadian economy.”

“I think that residential is the single biggest concern for 2014,” says Brad Nelson, president and chief operating officer, Canadian

Buildings & International Initiatives, PCL family of companies, Mississauga Ont. “It has been very busy, especially in condos. It is bound to level off to something a little more reasonable.”

Non-residential: Growth in non-residential construction will moderate, according to CSC. “Slower growth is projected for the 2013– 2021 scenario period and growth is spread out over a high plateau of gradual employment gains. Growth accumulates to 44,000 new jobs across the nine-year scenario from 2013 to 2021.”

Quebec is flat, New Brunswick “ is down a bit, and other parts of the country are up. ” It is a regional narrative, emphasizes Atkinson. “Quebec is flat, New Brunswick is down a bit, and other parts of the country are up.”

Industrial construction is picking up as the manufacturing economy improves. “A lot of the industrial side seems really to be going strong,” says Nelson. “With the commercial and civil infrastructure side, we’re seeing the same thing, pretty well across Canada… We went through a lot of years where all the big developers did little or no renovations or expansion to existing [commercial] facilities.”

Institutional building is active as well, again depending on the region. “Partnerships BC is very active right now, with a lot of hospital work out for tender,” says Nelson.

FACT! “We’re doing a lot of schools, and “More than before that we did a lot of colleges 55% of and universities,” says Clive Thurston, municipal president, Ontario General Contractors roads in this Association, Mississauga, Ont. “The country need infrastructure Ontario projects are still to be redone.” coming on line, but you’re only talking about big companies.”

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2014 CONSTRUCTION FORECAST A NATION OF REGIONS Ontario: “The smaller and mid-sized firms are hurting badly,” says Thurston, who is “definitely” predicting a decline in business for next year. “We’re doing what we can to help our members prepare for leaner times to come over the next year or two. It could get even leaner in 2015. Until the private sector starts to get more involved and spend some money, all we have right now is public work.”

Large firms note the change, too. “The pipeline at Ontario infrastructure has slowed down a bit, but it’s still pretty extensive in transportation,” says Nelson. “We are not seeing the billion-dollar or $500-million hospitals, but there are projects in the $200-$300 million range coming out in the next couple of years. Between Ottawa and Toronto, it’s pretty busy.”

“A likely moderation in homebuilding activity and a continuation of efforts by the provincial government to address its rising debt burden are two influences that are likely to keep Ontario’s economic growth in the moderate camp. Real GDP growth is expected to clock in at 1.5 per cent in 2013,” noted a provincial economic forecast published by TD Economics in October.

One bright spot is Building Together, Ontario's long-term

infrastructure legislation. “We have been working with them on a long-term basis to recognize that infrastructure spending is an investment, not a cost,” says Thurston.

The “10-year plan setting out the government's priorities allows contractors to effectively plan their capital investments in plant, equipment and materials,” notes Rob Bradford, executive director, Ontario Road Builders’ Association, Mississauga, Ont. “[Ontario] will continue to make significant investments in infrastructure of more than $35 billion over the next three years, including about $13.5 billion in 2013-14, according to Building Modern Infrastructure, published by the Ontario Ministry of Finance in November.

Nelson says generally the Atlantic provinces are steady and kind of flat right now. “We’re projecting that into the next year,” he adds.

Prince Edward Island: Growth should be “steady but moderate,” says TD Economics. The growth of around 1.5 per cent a year over the past few years should continue.

The Atlantic Provinces Economic Council's 2013 Major Projects Inventory (APEC), released in June, identified 44 projects in P.E.I.

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totalling $1.9 billion, an eight per cent increase over last year.

New Brunswick: According to APEC, while current-year spending is down, New Brunswick has 75 projects worth a total of $18.9 billion this year, a six per cent increase.

“Capital spending will be supported in 2014 with the $579million Sisson Brook Tungsten-Molybdenum project,” says TD Economics. The report also notes the TransCanada Energy East Pipeline project, potential projects tied to natural gas/shale gas exploration, and work at the Canaport LNG receiving terminal.

Nova Scotia: “Special projects like the shipbuilding project will accelerate growth in Nova Scotia,” notes Atkinson. “There will be a lot of spin-off work.” APEC identifies 156 projects worth $40 billion, a 23 per cent increase over last year.

Newfoundland and Labrador: “[It] just keeps on growing—especially with the offshore activity and hydro development. The labour supply there is already a problem,” says Atkinson.

Some 113 projects totalling $54 billion—a 12 per cent increase over last year’s numbers—are listed by APEC, attributing much of the increase to changes in the estimated value of key energy and mining projects.

“We forecast economic growth to come in at a much more modest 0.5 per cent in 2014,” says TD Economics. “Further out, the development of the Hebron offshore site will support stronger production beyond 2017.”

Quebec: The Quebec economy remains flat but improvements to the manufacturing economy—especially in aerospace—should help. In an effort to jump-start economic growth, Quebec recently announced plans for a $2-billion economic initiative to spur job creation. Schools, northern infrastructure and residential energy efficiency are all on the list. Quebec could be reaching the end of a cycle.

“Large mining and related projects have begun, while current and proposed utility projects are scheduled to wind down between 2013 and 2015,” notes CSC. Many projects involving electrical generation and transmission will reach completion by 2014.

An overbuilt condominium market stands to weigh against housing activity in major markets in Quebec, noted the TD Economics report.

Manitoba: Economic growth should be about two per cent over the next few years, says TD Economics. Utilities and hydroelectric development spur much of the optimism.

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2014 CONSTRUCTION FORECAST Labour markets are currently tight due to industrial and commercial building and housing starts, says CSC. “These pressures are expected to ease off by 2014 and 2015, leaving Manitoba’s construction workforce at a record high level.”

Saskatchewan: With its provincial budget balanced, economic growth will be around three per cent in 2014, says TD Economics. Activity in is non-residential construction and resources have driven growth in residential and commercial development, says CSC. In 2015, construction employment will be more than 60 per cent above historical levels.

Alberta: Overall oil-sands production will increase by as much as 100 per cent from 2013 to 2021, with attendant spin-off construction work, says CSC. However, declining housing activity and the winding down of some big infrastructure projects will create a pause in employment growth from 2014 to 2016, says CSC. The momentum will return in 2016 as the next round of oil sands expansion commences.

“The government has continued to invest heavily in capital projects,” says Gene Syvenky, CEO Alberta Roadbuilders & Heavy Construction Association, Edmonton. “Over the next three or four years, the completion of the ring road and the investment in highway 63 means we will have pretty significant numbers every year.”

British Columbia: “[B.C.] stands out among all the provinces for strong employment growth through the recession and across the scenario period, with employment up by 16 per cent from 2009 to 2021,” according to CSC. Non-residential work is increasingly concentrated in utility and mining projects in the North. Residential activity should continue to grow from 2013 to 2017.

Strong economic growth of more than two per cent should return to the province in 2014, according to TD Economics.

A VERY GOOD YEAR “2014 seems like a very good year,” says Nelson. “It is not just the government spending money, but now we have the private sector kicking in. It’s a pretty steady pipeline.”

There is downside to being too busy, he adds. “As the markets grow, some of the subtrades become more and more taxed on managing their business. Where they used to do $75 million worth of work a year, now they are doing $150 million or more. That can be a big challenge for a smaller operator,” says Nelson.

FED FUNDS Many sighed in relief at the Federal government’s Economic Action Plan 2013, tabled in March. Renewed support for the Building Canada Plan, an indexed Gas Tax Fund and the incremental GST Rebate for Municipalities were widely applauded.

Considerable detail about the plan is available online. It includes more than $53 billion in investments over 10 years, starting in 2014–15.

But what does this big spend mean to construction in 2014?

“There shouldn’t be any kind of crimp in the hose, as far as the Building Canada Plan goes,” says Atkinson. About $6 billion from the last Building Canada Plan remains unallocated. “We’re still trying to get some detail on how that $6 billion of unspent, yet committed, funding from the current plan breaks out on a regional basis.”

There shouldn’t be any kind “ of crimp in the hose, as far as the Building Canada Plan goes ” Last time around, the problem with the program was excessively rigid deadlines, says Thurston.

“We got caught in terms of the construction season,” says Dauphin. For the current funding, “It’s an emergency, and our members are worried… We are working hard and pushing to make sure that some projects are started for the next construction season.”

How much impact will the plan ultimately have on 2014? “The amount of dollars that will finally trickle down from the Building Canada Fund is insignificant,” says Syvenky. “The provinces are probably asking the same questions: how soon is that money going to hit them?” That could be holding back the design and development of infrastructure.”

“2014 won’t be much affected by the federal budget. The major programs were already in place... We’ll see it in 2015 or 2016,” says Nelson. “We’re still pretty bullish for 2014, even without it.”

Jim Barnes is a contributing editor to On-Site.

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2014 PICKUP TRUCKS

PICKUP MAKERS TARGET ‘BEST-INCLASS’ GOAL WHAT’S NEW IN 2014 AND 2015 FULL-SIZE PICKUP TRUCKS?

BY BILL ROEBUCK

i

n the work truck world, the venerable Ford F-150 has held the leadership role in overall sales for decades. In fact, it's the best selling vehicle in Canada, outpacing any car, SUV, Crossover or other light truck. But its competitors are upping their game.

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2014 PICKUP TRUCKS

The light-duty Chrysler RAM 1500 now claims best-in-class fuel economy.

Witness the latest version of Chrysler Canada’s Ram Truck.

The light-duty 2014 Ram 1500 model now claims ‘best-in-class’ leadership in a few categories, including standard V6 horsepower and 4x2/4x4 fuel economy. It’s the only one to offer a V6 diesel engine, and the horsepower rating of its standard V8 easily bests the competitors.

The new Ram is also the only pickup to offer an eight-speed automatic transmission, a coil spring rear suspension and optional four-corner air suspension.

When Ram engineers looked at the competitors—not only the F-150 but also the Chevrelet Silverado 1500/GMC Sierra 1500 twins, the Toyota Tundra and the Nissan Titan—they decided to go big when it comes to towing capacity. The new Ram's standard 3.6-litre V6 will haul 3,379 kg (7,450 lb.), the 3.0-litre EcoDiesel V6 is rated at 4,173 kg (9,200 lb.), and its standard V8 pulls 4,740 kg (10,450 lb.).

The only way to tow more in a half-ton is to turn to the Chevy/ GMC twins, whose optional big V8 can tow 5,443 kg (which sounds more impressive in Imperial units at 12,000 lb.).

Need to have a trailer towing capacity of 13,608 kg (30,000 lb.)? Then you can turn to the Ram 3500 Heavy Duty, powered by

an upgraded 6.7-litre Cummins Turbo Diesel engine that produces 850 lb.-ft. of torque. It can haul 500 sheets of drywall or more than 900 cases of beer.

The heavy-duty 2014 Ram 2500 and 3500 pickups get new frames, a new powertrain and an all-new 6.4-litre HEMI V8.

The Ram 2500 offers gooseneck or fifth wheel capability, plus a cargo-view camera for easier trailer loading as well as monitoring of bed loads.

What’s garnering a lot of attention in the light-duty line, though, is the new 3.0-litre EcoDiesel, a turbocharged V6 that produces 240 hp and 420 lb.-ft. of torque, yet is claimed to be more fuel efficient than all V6 and V8 gasoline engines in the half-ton pickup category. Official numbers have not yet been released, but Chrysler estimates 7.3-7.4 L/100 km on the highway. This engine is mated to the only eight-speed automatic in the half-ton class.

The Ram 1500 is offered in regular cab, quad cab and crew cab versions with either two- or four-wheel drive and in short-box (5 ft.

7 in.), medium-box (6 ft. 4 in.) or long-box (8 ft.) versions.

Of note, the Ram 1500 equipped with the 3.0-litre EcoDiesel and eight-speed transmission recently won the 2014 Canadian Truck King Challenge. This diesel half-ton earned the top score in

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High-strength and ultra high-strength steels make the new Chevrolet Silverado frame and cab lighter.

the competition as well as coming first in its Over-$45,000 class.

In addition, the 2014 Ram 1500 3.6-litre V6 with the eightspeed was the first-place winner in the Under-$45,000 category.

And in the Heavy Duty class, the Ram 2500 diesel-powered pickup towed its way to a Truck King win.

Next, let's look at the leader for half-ton pickup towing capacity, the Chevrolet Silverado 1500 (sister to the GMC Sierra 1500), with its rating of 5,443 kg (12,000 lb.) from its big V8 engine, the 6.2-litre V8.

General Motors says its models are new from hood to hitch, and include improvements such as a trio of all-new EcoTec3 engines— a V6 and two V8s; a stronger, quieter and more comfortable cab; a new interior with comfort features and connectivity tailored to the needs of truck customers; revised steering, suspension and brakes for improved ride and handling; and new solutions for managing cargo in the bed.

Consumer testing organization Consumer Reports ranked the 2014 Chevrolet Silverado 1500 LT/GMC Sierra 1500 LT crew cab pickups as its top pickup truck choices. With its new design, and equipped with the 5.3-litre V8 and four-wheel drive, it edged out the competition in a head-to-head comparison test.

In the Heavy Duty class, the RAM 2500 “diesel-powered pickup towed its way to a Truck King win. ” For its new models, General Motors has strategically replaced traditional steel with lightweight, high-strength steels for improved capability, safety and fuel efficiency.

High-strength and ultra-high-strength steels make the Silverado and Sierra’s fully boxed frames and cabs lighter and stronger, helping the trucks deliver V8 consumption as low as 8.7 L/100 km on the highway.

The new Silverado/Sierra models come with a choice of three new engines: a 4.3-litre V6, a 5.3-litre V8 and a 6.2-litre V8. Fuelsaving technologies are designed into all three, including direct gasoline injection, variable valve timing, and cylinder deactivation that use only four cylinders when full power isn’t required.

Silverados and Sierras with the 4.3-litre V6 can tow up to 3,447 kg (7,600 lb.), with fuel consumption rated as low as 8.4 L/100 km on the highway.

On the heavy-duty front, General Motors has already

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2014 PICKUP TRUCKS

revealed what we'll see in its 2015 Chevrolet Silverado HD model.

Updates for the 2015 model year include new exterior styling with enhanced cooling air flow, which enables the 6.6-litre Duramax turbo diesel and 6.0-litre Vortec V8 to better maintain full power, even under heavy loads and high ambient temperatures.

To improve towing, the 2015 HD will offer integrated cruise control, Auto Grade Braking and Diesel Exhaust Braking (on diesel models). A 6.0-litre bi-fuel V8, which runs on either gasoline or compressed natural gas, will be available on regular-cab, crew-cab and new double-cab Silverado 2500 and 3500 models. StabiliTrak with Trailer Sway Control will be standard on all models, including 3500 duallies.

The new design will also include new 6.5- and 8-ft. boxes with standard CornerStep bumpers, EZ Lift and Lower tailgates, and other features to make cargo handling easier.

Payload and towing capabilities of the 2015 Silverado HD will increase from 2014 models. Maximum available payload will be 3,508 kg (7,374 lb.). Maximum available conventional towing capacity will be 8,890 kg (19,600 lb.) with the available factory hitch. Maximum available fifth-wheel towing is to be 10,523 kg (23,200 lb.).

In the Ford camp, the changes are minor, as its pickup truck line-up was refreshed for 2013. Updates to the 2014 F-150 include a bolder front-end design using high-intensity discharge (HID) headlamps on XLT and higher trims, an optional power-telescoping and power folding trailer-tow sideview mirror, and other appearance enhancements.

There are a wide range of engines in the F-150 lineup, including a 3.7-litre V6, 5.0-litre V8, 6.2-litre V8 and 3.5-litre EcoBoost V6.

Both the 3.5-litre EcoBoost V6 and 6.2-litre V8 are rated to tow up to 5,126 kg (11,300 lb.). Ford has equipped its entire full-size pickup truck line-up with six-speed automatic transmissions in order to provide reduced fuel consumption.

Overall, Ford offers 10 versions of the F-150, from the base XL to the fully-loaded Limited, as well as 15 versions of the Super Duty F-250, F-350 and F-450 models.

Ford offers 15 versions of the Super Duty F-250, F-350 and F-450 models.

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The Ford F-150 is Canada’s best-selling vehicle

As for Toyota, the Tundra half-ton full-size pickup truck has been redesigned for 2014 with a bolder, more chiselled exterior and new, more refined interior that offers improved driver ergonomics and intuitive technology. The redesign is the first major change to the Tundra since the 2007 model year.

2014 Tundra models include the SR, SR5, Limited, and two premium grades—the Platinum and the all-new 1794 Edition. The 1794 Edition is a tribute to the ranch, founded in 1794, on which the Tundra plant is located in San Antonio, TX. Three cab styles are available: two-door Regular Cab, four-door Double Cab and four-door CrewMax, with either 4x2 or 4x4 drivetrains. Short-bed, standard-bed and long-bed versions are offered.

A lockable easy-lower-and-lift tailgate lowers slowly with no slam and can be removed.

The new design includes an integrated spoiler in the deck, which helps with fuel efficiency. The front and rear bumpers changed from one piece to three, for lower replacement costs if they get banged up on a job site.

Inside, the reach to the audio and HVAC controls was reduced by 2.6 in. Large knobs mean they can be operated while wearing work gloves. The CrewMax model rear seats can now be folded up for additional cargo space.

The interior of the SR5 features a 'professional gear' theme, with unique driver and passenger zones, metallic accents and contrasting fabrics.

Engine offerings include a standard 4.6-litre V8 and an optional 5.7-litre V8. Both come with a six-speed automatic transmission.

Several enhancements were implemented on the 2014 Tundra to improve performance. Shock-absorber valving has been re-tuned to improve ride quality over harsh surfaces. Steering

For more inFormation, please contact:

Mark Cusack, National Show Manager • mcusack@mpltd.ca Shawn Murphy, Show Manager • smurphy@mpltd.ca 1-888-454-7469

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2014 PICKUP TRUCKS

Patented Aero-Fins reduce air turbulence along the sides of the “ vehicle and also aid in enchancing straight-line stability during normal driving conditions and while towing. ” feel and straight-line stability were enriched by steering-system enhancements.

Patented aerodynamic stabilizer fins were added to the outside surface of the rear tail lamp lens and the outside mirror bases.

These patented Aero-Fins reduce air turbulence along the sides of the vehicle and also aid in enhancing straight-line stability during normal driving conditions and while towing.

When equipped for towing, the Tundra offers a maximum tow capacity of 4,760 kg (10,500 lb.) with the 4x2 Regular Cab Long Bed. The Tow Package provides a tow/haul shift mode and upgrades the cooling and electrical systems. The seven-and four-pin towing hitch connectors sit above the hitch to help avoid damage during high-departure-angle driving. Trailer Sway Control is standard.

The 2014 Tundra is the first in its segment to be equipped with a standard backup camera on all grades, and the only full-size pickup with optional Blind Spot Monitor with Rear Cross Traffic Alert systems—available on Limited CrewMax, Platinum and 1794 Edition models.

There are no major enhancements to Nissan's 2014 Titan half-ton pickup. Mechanically, the Titan has remained unchanged since 2011.

The full-size pickup is available in King Cab and Crew Cab body styles with a choice of 4x2 and 4x4 drive configurations, along with two wheelbases and three bed lengths. Trim lines include S, SV, PRO-4X and SL models. The 4x4 models have an advanced shift-on-the-fly system with 2WD/4HI/4LO models.

Last year, Nissan incorporated a new tailgate design with an aerodynamic rear spoiler and, on SV, PRO-4 and SL trims, an

The Toyota Tundra has been redesigned for 2014—the first major change since the 2007 model year.

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Amenities on the Nissan Titan include a 120-volt outlet in the truck bed as standard.

integrated rear-view camera. Amenities include a 120-volt outlet in the truck bed as standard on SV, PRO-4X and SL models, along with a centre console 120-volt outlet, and rear reading lamps on the Crew Cab models.

The standard engine is a 5.6-litre V8 mated to a five-speed automatic that includes tow/haul modes. Towing capacity is as much as 2,948 kg (9,500 lb.) for the King Cab version.

The big news from Nissan will come with its next-generation 2015 Titan. This all-new truck will add powertrain options and cab-and-box configurations to broaden its appeal when it comes to market at an as-yet undetermined date.

Significantly, the new Titan will offer a newly-developed Cummins V8 turbo diesel.

“We have done our homework on the nextgeneration Titan. Truck owners told us there's a demand for the performance and torque of a diesel in a capable truck that doesn't require the jump up to a heavyduty commercial pickup,” said Fred Diaz of Nissan North America.

“We’re going to be the only ones to have a V8 diesel in a 1500 truck, which is a pretty neat space to play in because you’re actually going to be more powerful and bigger and have more capability than a 1500—but not quite at the level of a 2500,” he said.

“With a torque rating in the mid-500 lb.-ft. and more than 300 horsepower, the Cummins 5.0-litre V8 turbo diesel will provide light truck customers the combination of towing capacity and mileage that is expected in the highly-competitive North American truck marketplace.”

Bill Roebuck is a voting member of the Automobile Journalists Association of Canada (AJAC). Send comments to editor@on-sitemag.com

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SITE PREP

Aerial shot of the Fort St. John Hospital (left) and Peace Villa residential care facility (right) nearing completion in 2012.

Preparation holds k Despite harsh northern climate, joint venture constructs award-winning $237M hospital and residential care facility in northern B.C. BY PATRICK CALLAN

L

ocated in northeastern British Columbia and northwestern Alberta, the Peace Country region of Canada is commonly known for its handful of oil and gas towns situated along the southernmost stretch of the Alaska Highway. The region is also synonymous for an unforgiving winter season, which can last up to six months with temperatures dropping as low as -30 degrees C. Itâ&#x20AC;&#x2122;s in this rural western part of the country that a British Columbian city of 18,600 was recently thrust into the national spotlight for a much different industry: health care.

Situated about 65-km west of the British Columbia-Alberta border, Fort St. John, B.C. is the proud home of the $237-million Fort St. John Hospital and Peace Villa residential care facility that was

built through a joint venture by Acciona/Stuart Olson Dominion from the summer of 2009 to May 2012.

The 330,000-sq.-ft. facility won the Vancouver Regional Construction Associationâ&#x20AC;&#x2122;s (VRCA) top honour in the general contractor more than $40 million category at the 25th Annual VCRA Awards of Excellence gala, held on Oct. 17 at the Vancouver Convention Centre West.

One of the largest social infrastructure developments in northern Canada, the P3 project consisted of building a three-floor, 55-bed hospital with three operating rooms, an intensive care unit, birthing centre, emergency room, endoscopy suite, training facility for the University of British Columbia, pharmacy, labs and a 123-bed residential care facility connected to the hospital.

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SITE PREP

Onserisci riat. Onse Ut ra volo Bulk excavation of the site for the 330,000 sq. ft. facility took place in the summer of 2009.

Construction crews were able to work through the winters thanks to a massive hydronic heating system.

s key to success The integrated health centre achieved LEED gold certification with the implementation of sustainable features including: stormwater retention, surface water management, use of natural light, high energy-efficiency, reduction of volatile organic compounds and noise reduction acoustics.

Pulling off a project of this magnitude in a remote town such as Fort St. John involved plenty of planning and preparation, says Mike Bebbington, Acciona’s senior project manager.

“When you’re working as far up north as Fort St. John, it’s very important that you schedule the work to be done before that winter sets in when you’re dealing in bulk excavation and foundation work.”

BEFORE THE SNOW FLIES Bebbington says the contract was originally supposed to be signed in July 2009, but they were able to secure an early works agreement.

“There was no way that we could do bulk excavation, put the foundations in, build the steel frame on top and wrap the building in its cladding in that one summer season,” he says. “We really had to think, how do we protect the foundation while the steel is being made over the winter ready for the next spring?” The answer: a “heated blanket.”

The team continued to dig and pour the foundation, and in October a hydronic heating system—“miles and miles of pipework”—was brought in. The system was similar to the radiant floor heating slabs in a residential home, except significantly larger.

“Imagine that on a massive scale of maybe 60,000 sq. ft.,” he says. “We were just heating it to one degree C. It’s just a matter of keeping the frost away.” Frost in that part of the country can reach six feet deep.

Because the ground was kept from freezing, work, albeit a scaled back amount, continued during the winter months. On good days, a lot of the underground pipework could be done as well.

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SITE PREP

Much of the bulk excavation was retained and used as berms to protect against the wind—which also meant a lot of excavated materials weren’t being transported off the site.

“We did a complete wind study on the building so we knew where snowdrifts would be, which direction exhaust from the building would go and what the air flow was going to be like,” explains Bebbington.

COMPLETING THE PROJECT: 2010-12 With the first winter behind them and the foundation now in place, full-scale work resumed in the spring of 2010 as steel started arriving on-site. Construction moved from west to east with the steel structure, and since it was a P3 project, the actual designing and building were done very close together.

“We divided the hospital and residential care centre into many phases or areas. We had to marry how we were going to do the design and how we were going to build it,” says Bebbington. “You have to basically manage the design schedule to meet the end date of the construction schedule.”

The first part of the steel structure to be completed was the mechanical and electrical rooms in the basement, before moving onto the maternity unit on the floor above.

challenge was actually location.

“TheThebiggest trade shortage was quite great. ” “If you look at the entire building, the maternity unit was actually complete with the doors shut in June 2011,” he says.

Throughout the second summer season, the goal was to try and get the entire building enclosed—exterior walls, windows and roofing.

“That target was pretty tough to do. I’d say we managed to enclose about 80 per cent of the building.” That allowed them to work inside a controlled environment heading into the second winter season.

Following the maternity unit, the remainder of the facility was built in phases over the next two years: the operating rooms, surgical services, intensive care unit, emergency room, diagnostic imaging and ambulatory care. The entire project was completed in May 2012.

DIFFICULTIES FINDING SKILLED WORKERS If the climate weren’t challenging enough, there was also the task of finding a few hundred skilled trades people to work on the threeyear project in northern Canada.

“The biggest challenge was actually location. The trade shortage was quite great,” says Bebbington. “The majority of the trades and companies in the Fort St. John area are very industrial. They’re not really used to building a 330,000-sq.-ft. hospital institutional building.”

Most of the workers were brought in from the lower mainland British Columbia, Edmonton and Calgary. Acciona/Stuart Olson

The finished product. ABOVE: Exterior of hospital.

MIDDLE: Reception at Peace Villa. BOTTOM: Interior of hospital.

also instituted an apprenticeship program, hiring trades students from the local Northern Lights College, and there were a handful of workers from the U.K., and even one Australian. During peak construction, there were as many as 350 workers on-site.

But it wasn’t only workers that had to be brought in from out of town. Most of the construction materials had to be sourced from two main hubs: Vancouver and Edmonton, to keep in line with LEED gold standards, which specifies using regional materials for construction. Fortunately, they were able to use wood from a local lumber mill to build the entire 93,000-sq.-ft. structure of the residential care facility.

“We noticed when we were doing research in Fort St. John that there was a huge lumber mill up there so we thought it would be nice to give back to the community,” he says.

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SITE PREP

RECOGNITION

became to the workers and it was very close to their hearts.”

For their hard work, planning and adherence to environmental To watch a video about the Fort St. John Hospital and Peace standards, the Vancouver construction community decided to give Villa residential care project visit http://www.youtube.com/ back to the Acciona/Stuart Olson construction team by awarding watch?v=bMnrHflDe08. them first place in the general contractor more than $40 million category at this year’s VRCA awards.

The joint venture was an excellent example of how partnering can achieve a world-class result, says Fiona Famulak, president of the VRCA. The facility was 25 per cent more energy efficient than the standard set by the model national energy code for buildings. It had a waste management plan that resulted in 75 per cent reduction and made good use of l ocal materials—particularly pine beetle wood.

“And the fact that’s it’s built that far north, there are obviously major weather challenges and they were able to work with them and around them,” she says.

Each year, beginning in January with a call for nominations, the VRCA begins a lengthy evaluation process for reviewing award candidates, which includes visiting the actual jobsites and testing the overall project against eight criteria: five “macro” and three “micro.”

Macro criteria include the financial performance, schedule, value engineering, challenges and sustainable construction. For micro, the VRCA evaluates safety THE COLOR OF practices, site communication and material management.

“The project either met or exceeded the criteria,” says Famulak. “It was a unanimous winner.”

Three new Genie® Rough Terrain Scissor Lifts offer an upgraded industrial design with When asked for his reaction about the better overall performance. The new scissor family has a front active oscillating axle, construction team of Acciona/Stuart Olson which provides greater terrainability and power in extreme jobsite conditions. The winning a gold medal award at the VCRA entire RT69 family has been enhanced with improved jobsite performance. The new awards, Bebbington was quick to credit the workers, who he says really bought into the design enables all three models to drive and function at full height. Think Blue. project and went above and beyond what was expected.

“It’s really recognition of all the people that worked on that project, every single EMAIL awp.info@terex.com trade worker,” he says. “There were a lot WEB genielift.com of people that took time away from their families to do this project. It was quite Genie is a registered trademark of Terex South Dakota, Inc. Genie is a Terex Brand © 2012 Terex Corporation. remarkable how important this project

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YOU’RE NOT DELIVERING CUPCAKES

The Mack® Granite® is ready to work. Hard work. Real work.

Long work. And it doesn’t care what you put on its back — dump, roll-off, mixer, whatever. It’s ready for anything.

Mack is proud to partner with

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DECEMBER 2013

Happy Birthday

World of Con

crete!

Inwww.on-sitemag.com this issue: WOC PRODUCT PREVIEW 35_Coscover.indd 35

| CRMCA COLUMN | CONTEMPRA

13-12-04 12:43 PM

S

SUSTAINABLE CONSTRUCTION: BUILDING TOMORROW’S WORLD

F

rom providing greater resilience in the face of more extreme weather events, to reducing emissions, to new, greener products, the cement and concrete industry is helping redefine the way we think about the construction of our roads, bridges, and buildings. This is good news for people who are concerned about safety, the environment and investment in public infrastructure.

Globally and in Canada, the cement and concrete industry has made—and continues to make significant investments to become more efficient, cleaner and increasingly focused on product-based solutions to sustainability challenges.

Earlier this fall, cement industry executives from around the world gathered in Vancouver with other experts and practitioners in sustainable construction for the CSI Forum 2013, where they discussed the latest advancements, issues and opportunities in this field.

Over the course of the two-day event themed “Sustainable Construction: Building Tomorrow’s World,” attendees engaged in a dialogue on several sustainable development issues close to heart for the cement industry, including: • Key industry strategies and achievements in reducing energy use and CO2 emissions; • Innovations, new technology and new best practices that increase the industry’s contribution to more sustainable, resilient communities, from lower carbon cement to carbon capture and reuse in cement manufacturing, to transparent concrete, among others; • Sustainable construction success stories in municipal, institutional, commercial and residential settings; and • The increasing importance of a resilient built environment in the face of climate change and increasing urbanisation.

COMMITTED TO SUSTAINABLE CONSTRUCTION In Canada and abroad, the cement industry continues to innovate and invest in reducing GHGs from cement manufacturing and by producing lower-carbon cement and concrete. Innovations include: research into low-carbon clinker; substituting traditional fossil fuels with low-carbon fuels; investing in projects such as carbon capture and reuse through microalgae growth; photo-catalytic concrete with smog-eating, self-cleaning performance; and permeable concrete for storm water management.

traditional construction, according to research from the CaGBC. The rapidly increasing demand for a sustainable built environment is increasing the scrutiny placed on what materials are used in the construction and refurbishment of buildings and infrastructure.

For that reason, Life Cycle Assessments (LCA) are becoming more critical and need to be conducted as early as the design phase of the project. Rigorous, truthful, science-based LCA tools have become critical for making the best decisions for our economy, the environment and society at large.

However, these tools must expand beyond their current focus on traditional sustainability metrics to take account for our need to adapt to climate change, as one cannot discuss sustainability today without taking resilience into consideration.

While sustainability is about mitigating climate change by reducing CO2, resilience is about adapting to the reality of climate change, about making our infrastructures and communities better prepared to withstand catastrophic events and bounce back more quickly.

Resilience is particularly key to cities given the large concentration of people who live in urban environments. In fact, leading cities are seizing the concept of resilience to think differently about their infrastructure decisions. After hurricane Sandy, and closer to home, the devastating flood in Calgary, municipalities are bringing the concept of resilience to the fore and leading the conversation.

In this new reality, it more important than ever for the construction industry to communicate the value that cement and concrete materials bring to the sustainability and resiliency imperative.

GREEN BUILDING IS BIG BUSINESS The financial case for green building is now well established. In Canada green buildings command rent and occupancy rates 6 per cent higher and achieve 14 per cent savings on operating costs over

Lyse Teasdale is director of communications for the Cement Association of Canada and a partner of the Canadian Ready Mixed Concrete Association. Send comments to editor@on-sitemag.com.

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Artists rendering of the Arthur Erickson Building in B.C., which is being built using Contempra.

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MATERIAL ADVANCES

This 41,872-sq.-m. federal government building in Gatineau, Que. was made with Contempra.

Contempra now accounts for half of the domestic cement consumed in province BY PATRICK CALLAN

A

low carbon cement that lowers carbon dioxide emissions by 10 per cent has become the leading choice for the bulk of new concrete construction projects in British Columbia.

The Contempra brand, made using Portland limestone cement (PLC), has now reached 50 per cent of the market share in B.C., according to the Cement Association of Canada (CAC).

Since its launch two years ago in Canada, more than 23,000 tons of greenhouse gases have been taken out of the atmosphere each year—comparable to saving 9.7 million litres of gasoline.

So, what’s the difference between traditional cement and Contempra?

Michael McSweeney, president and CEO of the CAC, explains that instead of processing limestone through the kiln as you normally would, 15 per cent ground limestone is added to the clinker at the end of the process. And by not processing 100 per cent of the mix in the cement kiln, the amount of coal need to fuel it is decreased, which in turn significantly reduces the amount of energy used.

“When the limestone goes in the kiln it is heated up to 1,450 degrees FACT! C and you’re causing a chemical reacContempra has tion turning the limestone almost into reduced coal a molten lava. Then it cools very quickburning by ly and is turned into almost a metal substance, which is then ground into 9,800 tons clinker,” he says. “By adding 15 per per year. cent limestone at the end of the process,

you have a net savings of 10 per cent greenhouse gas in the cement that you’ve just produced.”

So far, Contempra has seen its best results in B.C., where in addition to several condominium, commercial and institutional projects, other Contempra projects already completed or ongoing include the Arthur Erickson Building, the Wall Center False Creek Development and ONNI’s Evelyn master-planned community.

“We’re hoping to get Contempra somewhere between 80-90 per cent market share across Canada within five years (by 2016),” says McSweeney. “In B.C. we’re well on our way.”

But PLC is nothing new. It’s been used in Europe for more than 25 years. It just took a while to make its way through Canada’s codes and standards process, which in a way is good according to McSweeney, because of our different climate conditions.

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MATERIAL ADVANCES

Contempra was included in the 2010 national building code, and has since been added to the British Columbia, Ontario and Quebec building codes.

A number of Canadian multinational companies have been using PLC with partners in Europe for years and were pushing for it at

home to reduce carbon dioxide emissions in the cement manufacturing process.

Lafarge manufactures and ships Contempra from its Bath, Ont., Richmond, B.C. and St. Constant, Que. cement plants. Daniel Heroux, brownfield segment manager for Lafarge, said it fits perfectly with their overall strategy of “building better cities,” and sustainable construction is something that’s always important.

Lafarge was one of the first Canadian companies to be involved in studies to show PLC is just as reliable as traditional cement. In 2008 Lafarge partnered with the University of Toronto and the University of New Brunswick in a project that compared PLC and traditional cement side by side.

Since then lots of major projects in Canada have used it, such as a 16-storey federal government building in Gatineau, but at the same time it’s not just one or two off.

“It is being used across the spectrum,” he says, adding two hospitals going up in the Montreal area are using it exclusively.

Heroux says a key turning point took place when Contempra was added to the national and three provincial building codes. Since then it has become the new standard.

For McSweeney, he hopes the initial success of Contempra for use in buildings will carry over to roads and pavements as well. In Ontario, it is currently being tested to see how it holds up over the winter. In some places this will be the second or third winter season.

“They want to see how it reacts to salt, for example,” he said.

McSweeney said the surface of concrete pavement is typically 10 degrees C cooler than asphalt and contributes less to the “heat island effect.” And since concrete is a rigid surface, buses, trucks and other heavy vehicles ride on top of it as opposed to into it as they do for asphalt. “You can save between three to seven per cent in fuel because you’re riding on top of the pavement,” he said.

He added that overall, most people don’t normally see the cement industry as innovative, but he hopes that stereotype might begin to change thanks to products like Contempra.

“We are doing what we can to become part of the solution as opposed to being part of the problem,” he said.

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Drop Off & Pick Up

Escalator Drop Off ONLY

•Luckys Restaurant •Badge Pickup (Mon-Fri) CONCRETE SURFACES DECORATIVE PAVILION • Artistry in Decorative Concrete • Aisles O40500-O41000 Exploring Architectural Praxis: A Concrete Timeline

OUTDOOR EXHIBITS & DEMONSTRATIONS • Aisles O3000-O31800

SUSTAIN and GROW your BUSINESS Monorail Station

NORTH MEETING(WOC) ROOMS has UPPER LEVEL For 40 years, World of Concrete been the industry’s • World of Concrete Seminars only annual international event dedicated to the commercial • Meeting Rooms N252-N264 • CIM Auction, N262 industries. To be held concrete and masonry construction January 21 to 24 at the Las Vegas Convention Center, WOC will once again showcase innovative products, construction machinery, construction equipment, safety training courses and new technologies designed to help you grow your business.

In addition to highlighting the 40th anniversary, WOC 2014 will feature a week packed full of exciting hands-on product demonstrations, spectator events and competitions, more than 100 educational sessions, as well as luncheons and forums on the latest industry topics.

Providing abundant opportunities for networking, training and business growth, this well-known industry mega-show will include more than 1,000 leading suppliers and an expected 50,000registered concrete and masonry professionals.

SPECIAL EVENTSI • • • • • • •

Fall Protection Show Case Roller Compacted Concrete LIVE SAIA Safety Boot Camp Masonry Veneer LIVE Self-Consolidating Concrete Presentation & Forum CIM Whitepaper Presentation Hoover Dam & Lake Mead Intake Project Tour

EXHIBITSI • • • • • •

COMPETITIONSI • • • •

Renaissance Hotel

• Toughest Tender Competition • MCAA’s Fastest Trowel on the Block • Crews that Rock 2014

The Spec Mix Bricklayer 500 Competition John Deere Operator Challenge Western Star Serious Truck Challenge MCAA’s International Masonry Skills Challenge

World of Masonry | North Hall Technology for Construction | Central Hall Material Handling | Central Hall Repair & Demolition | South Hall Producer Centre | North Hall Concrete Surfaces & Decorative | South Hall

For detailed information visit www.worldofconcrete.comI

2014 World of Concrete Site Map GRAND CONCOURSE • Badge Pickup (Mon-Fri)

World of Masonry The Producer Center

TFC

LOBBY Drop Off & Pick Up

• Competitions & Challenges • Parking • WOC Certification/Training Area

tion pair

& De

moli

• Meeting Rooms S219-S233 • Exhibitor Meeting Rooms • Luncheons & Forums

Registration

• CC LIVE! Booth • 2015 Rebook Office (See website for hours Sun-Fri) • International Business Center

Escalator Drop Off ONLY

•Luckys Restaurant •Badge Pickup (Mon-Fri) CONCRETE SURFACES DECORATIVE PAVILION • Artistry in Decorative Concrete • Aisles O40500-O41000 Exploring Architectural Praxis: A Concrete Timeline

OUTDOOR EXHIBITS & DEMONSTRATIONS • Aisles O3000-O31800

Monorail Station

• Skywalk between Gold Lot and North Hall

GOLD LOT

SOUTH HALL MEETING ROOMS, LEVEL 2

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• Walkway Between Central and South Halls

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World of Concrete

• Badged Entrance Only

• Aisles C3400-C6900 • Material Handling

rative

• Meeting Rooms N101-N120, N201-N264 • World of Concrete Seminars • Press Room • Press Conference Room • Show Office • MCAA Office (N215) & Sessions (N208-N212) • Education Office / Speaker Ready Room

• Walkway Between LVH & North Hall LVH Hotel & Casino

CENTRAL HALL

Hoover Dam Door 9 Pick-Up

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• Aisles N100-N3200 • The Producer Center • World of Masonry • Masonry Veneer LIVE!

• Aisles S10100-129000 • Concrete Repair and Demolition • Concrete Surfaces & Decorative

• Aces Restaurant

MAIN & UPPER LEVEL MEETING ROOMS

NORTH HALL

SOUTH HALL, LEVEL 1

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January 21-24; Seminars: January 20-24 Las Vegas Convention Center, Las Vegas, Nevada www.worldofconcrete.com

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• CC LIVE! Booth • 2015 Rebook Office (See website for hours Sun-Fri) • International Business Center

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NORTH MEETING ROOMS UPPER LEVEL

Renaissance Hotel

• World of Concrete Seminars • Meeting Rooms N252-N264 • CIM Auction, N262

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January 21-24, 2014 ★ Seminars: January 20-24, 2014 Las Vegas Convention Center ★ Las Vegas, Nevada

Your

★

SUCCESS

★

L e g ac y is OUR

★

1995

1975 1985

Here’s to 40 years of big ideas. And 40 more of bigger possibilities.

No annual event is more important than the year’s first and the industry’s only international show specifically geared to you – the concrete and masonry professional. Above all, WOC gives you a world of opportunities to see cutting-edge products and equipment, connect with peers and establish key relationships that will shape your business and the industry for years to come.

A selected participant in the International Buyer Program

www.worldofconcrete.com Source Code: OS

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For a complete schedule of WOC seminars, certifications and exams visit: www.worldofconcrete.com

2014 WORLD OF CONCRETE

PRODUCT SHOWCASE Frame size loaders

For a complete schedule of WOC seminars, certifications and exams visit: www.worldofconcrete.com

Bobcat Company has released its first Tier 4 loaders with a non-diesel particulate filter (DPF) engine solution. The seven medium-sized machines provide operators with all of the same performance benefits of the previous interim Tier 4 models.

The S510, S550 and T550 feature a radius lift path, which facilitates reach and visibility for dumping over a wall, backfilling or loading flatbed trucks. The S530, S570, S590 and T590 models feature a vertical lift path, which can lift heavier loads higher, making it easier to clear high-sided truck boxes and hoppers, as well as placing pallets. Find Bobcat at booth C5479. www.bobcat.com

Portable generators

Rebar cutter and bender

Kohler’s new line of portable generators are designed for building contractors and construction professionals who need a durable and dependable portable power supply for tools and electronic equipment.

The portable generator family excels in fuel efficiency while offering clean power output that is safe for even the most sophisticated electronics. The complete line of models, ranging from a 2.0 kW inverter to a 12.3 kW gasoline generator, will be officially unveiled at World of Concrete. Kohler will be at booth O31446. www.kohler.com

The model FR-800-C combines a rotary bender with a heavy-duty shear to cut and bend up to and including #8 (1-in. diameter) rebar. As much as 190-degree bends can be made while one end of the rebar remains stationary. This compact electric/hydraulic machine is designed for use on-site or at the shop, and plugs into a standard 110-volt outlet. See the demonstration and other models at booth N3229. www.fascut.com

Diesel driven demolition Brokk’s 400D delivers enhanced durability and faster performance for applications where electricity is difficult to access, such as metal processing and tunneling industries. It features a new, powerful diesel engine, as well as a new undercarriage design.

The 400D delivers a 60 per cent increase in transport speed over the older model 330D, has a slightly bigger envelope, weighs about 2,200 lb. more, and can reach out horizontally nearly 23 ft. With a total weight of 12,125 lb., it can handle heavier attachments like the hard-hitting SB 552 breaker. Brokk will showcase the 400D at booth C4327. www.brokk.com

Performance upgrades Featuring a 109-hp Tier 4 compliant engine and new power modes, the Doosan DX140LC-3 crawler excavator is designed for improved performance and faster workgroup speeds for heavy-duty work. Four work modes—digging, breaker, shear, lifting — allow operators to get maximum efficiency and fuel economy. A new electronic clutch fan reduces fuel consumption and noise levels while providing cooling system improvements. This machine weighs 30, 865 lb. and has a digging depth of 17 ft. 3 in. Visit Doosan at booth C5487. www.doosanequipment.com

on-sitemag.com / 45

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WOC PREVIEW

Machine mounted drills Minnich Manufacturing’s series of machine-mounted drills are engineered to increase safety and productivity in dowel-pin drilling applications. Primarily used for full-depth repair or patchwork, Minnich offers excavator, backhoe and skid steer-mounted units that are ideal for horizontal jobs with a relatively long distance between the areas to be drilled. A number of different sizes of machine-mounted units, in either hydraulic or pneumatic versions, are available to accommodate any application.

Minuich will be located at booth C5289. www.minnich-mfg.com

Stringless control Wirtgen America’s Autopilot is an innovative stringless control system for use with Wirtgen SP 15 concrete slipform pavers. The Autopilot is ideal for poured-in-place concrete profiles such as curbs, safety barriers or slabs, and a GPS-based system ensures the highest precision and optimum efficiency in slipform paving.

The SP 15 pavers have a maximum paving width of 6 ft., maximum barrier/ parapet placement height of 4 ft. 3 in., and weighs 28,500 lb. Wirtgen America will display the SP 15 with AutoPilot stringless control at booth C6148. www.wirtgenamerica.com

High-impact hammer The Bosch RH540M spline rotary hammer features best-in-class impact energy of 6.1 foot lbs (EPTA*) for maximum performance when drilling or chiseling into concrete. Compared to its predecessor model (11240), this is a significant increase in impact energy of almost 40 per cent. Improvement in impact energy also increases drilling speed and chiseling removal rate up to 40 per cent. This rotary tool also boasts a 20 per cent increase in motor power from 10amps to 12amps. More power does mean a little extra weight—the new model is 14 lbs. vs. the previous 13 lbs.

O31752 & O31658. www.boschtools.com

Vertical drilling E-Z Drill’s Model 20 UTL allows companies to pinpoint the site of a gas leak without tearing out a significant stretch of roadway and it can handle any type of vertical drilling application. The standard 18-in. drill depth can be significantly modified based on needs, with depths customized to several feet deep. Drill bit diameter ranges 5/8 in. to 2-1/2 in. A minimum of 100 cfm compressed air is required for operating the drill.

Designed for ultimate maneuverability, the Model 20 UTL weighs just 207 lb. and is supported by a 29-in. wheelbase. E-Z Drill will display its Model 20 UTL Drill at booth C4241. www.ezdrill.com

Big Block Engines Subaru Industrial Engines’ two new big block V-Twin engines—the 35-hp EH90 and 40-hp EH99— meet a growing demand for larger, air-cooled gasoline engines that deliver increased power for a range of applications. The engines are ideal for equipment such as concrete polishers, riding trowels, utility vehicles, zero-turn mowers and ride-on blowers. Both are extremely durable, low maintenance, and feature heat-reduction technology and heavy-duty connecting rods, large crankshaft bearings and three-ring pistons. Subaru will display the engines at booth C4623. www.subarupower.com

46 / DECEMBER 2013

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CONCRETE MAKES FOR ENERGY EFFICIENT PAVEMENT. ALLOWING US TO BREATHE A LITTLE EASIER. Over a 50-year period, the construction, maintenance, and repair of a concrete pavement uses one third the energy required for an asphalt pavement.

To learn more visit rediscoverconcrete.ca

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Professional content for professional contractors

December 2013

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RISK

By David Bowcott

Is there a need to revamp surety capacity metrics?

V

ital to most contractors’ existence is access to security that guarantees their contractual obligations to their clients. These guarantees take the form of parental guarantees, holdbacks, letters of credit, surety bonds, EDC performance security guarantees, subcontractor default insurance, cash reserves, etc. When posting these various forms of guarantee the contractor is trying to balance the owners acceptance of the chosen form of guarantee with the constraints that guarantee places on the contractors finances.

One of the most critical forms of guarantee is the surety bond. These bonds can be used at the tender stage to secure the contractor’s bid to the owner, and they can also be used once the contract has been awarded to the contractor to secure performance. In some cases, they provide a guarantee that the contractor will pay their subcontractors and suppliers.

Surety is secured primarily through an indemnity agreement executed by the contractor. Sometimes this indemnity comes from the contractor’s parent company and in the case of smaller contractors, may include indemnity for the shareholders of the company. It is from this security package that the surety will determine the terms and conditions they extend to the contractor. Key items within those terms and conditions are the rates, the single job size limits, and the aggregated facility limit.

Most contractors, if they are smart, should focus on the aggregate facility limit. This is the amount of surety capacity the surety company is willing to extend the contractor at any given time.

How does the surety arrive at the aggregate facility limit? Well, the primary driver of aggregate facility size is the financial statements of the parties indemnifying the surety company, with a focus on the parent and operating company’s financial statements. The surety will look at the consolidated financials of the indemnifying companies and adjust any assets and liabilities based on their analysis of notes to the financial statements, as well as ancillary documentation

“Surety is secured primarily through an indemnity agreement executed by the contractor.” such as aged accounts receivable/ payable, work on hand, bank terms and conditions, etc. Ultimately they arrive at a working capital number (current assets minus current liabilities) and tangible net worth (asset less liabilities).

Let’s assume these numbers are of a similar size. From this number the surety will apply a multiple to arrive at the aggregate facility limit. These multiples vary based on several factors: type of contractor; size of contractor; makeup of the working capital; makeup of the tangible net worth; and third-party influences on your company. For instance, a mid-sized GC with $10 million in solid working capital, $20 million in tangible net worth and limited outside influence might command an aggregate facility limit of $600 million.

A subcontractor with the same measures might command an aggregate facility limit of

$300 million (it is lower primarily due to the holdback risk faced by the subcontractor).

One factor that doesn’t get as much consideration in sizing the aggregate facility limit is consideration of the nature of the contracts. Contracts are the vehicle by which the balance sheet of the contractor takes on risk. These days they allocate risk in a multitude of ways. As such, these contract risk allocations are also arrived at in a variety of ways. For instance, a Construction Management Agent contract has minimal risk to the contractor. However, a designbid-build lump sum contract can have significant risk for them. As it respects how these contract allocations are arrived at, one contractor might work closely with owners to allocate the risk in a negotiated, low-pressure environment that encourages dialogue between owner, contractor, design and subcontractor before finalizing terms.

A different owner might have a design firm drive several contractors to bid a project at a prescribed time to ensure all pricing is secured by subcontractors and the scope is in line with design. The nature of the contract and the process used to arrive at the contract, need to be considered more thoroughly when sizing aggregate surety facilities. So standard multiples, such as the 30 times outlined for the GC above, need to consider these factors to create a facility that is more in line with today’s diverse contracting environment.

Some surety companies are updating the metrics they use to size surety facilities. I strongly encourage you to make sure your surety is considering these factors, and that your company is getting the capacity it deserves. Capacity is King for contractors, and if you have the right dialogue with your surety, capacity should not be an impediment to achieving your business goals.

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

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ADVERTISERS’ INDEX & WEBSITES ADRIAN STEEL...............www.adriansteel.com........................................... 29 AHES SHOW....................www.ahes.ca........................................................... 51 BOBCAT CO........................ www.BobcatAdvantage.com/CTLfaceoff1....20, 21 CEMENT ASSOCIATION OF CANADA....................www.rediscoverconcrete.ca............................... 47 CONEXPO........................www.conexpoconagg.com................................... 55 DOOSAN INFRACORE CE...............www.doosanequipment.com/wellmade........... 53 DOOSAN PORTABLE POWER.............................www.DoosanPortablePower.com...................... 15 GM SIERRA.....................www.gm.ca................................................................ 2 HCSS.................................www.HCSS.com/On-Site...................................... 10 HUSQVARNA..................www.husqvarnacp.ca............................................ 40 JOHN DEERE...................www.JohnDeere.ca/dozer................................... 49 KOMATSU AMERICA....www.komatsuamerica.com................................. 56 KUBOTA...........................www.kubota.ca......................................................... 9 MACK................................www.MackTrucks.com.......................................... 34 MAXWELL SYSTEMS...www.maxwellsystems.com/onsite.................... 17 MERCEDES-BENZ..........www.TheNewSprinter.ca......................................11

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

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N N

Doo cou Doo cou

13-11-29 12:10 PM

Not Not well-known, well-known, just just really, really, really really

WELL-MADE.

There are many brands of equipment out there, but only one that’s built its entire brand on delivering the best There are many brands of equipment out there, but only one that’s built its entire brand on delivering the best to operators, again and again. Like you, Doosan excavators are ready to keep at it until the job is finished. They’re to operators, again and again. Like you, Doosan excavators are ready to keep at it until the job is finished. They’re protected with solid construction and heavy-duty features that keep you running longer—so you can make more protected with solid construction and heavy-duty features that keep you running longer—so you can make more money working and spend less of it in the shop. You might not know us as well as some of the other brands, money working and spend less of it in the shop. You might not know us as well as some of the other brands, but we’ll keep delivering long after you do. but we’ll keep delivering long after you do.

Doosan Delivers Doosan Delivers

www.doosanequipment.com/wellmade www.doosanequipment.com/wellmade

1.877.613.7970 1.877.613.7970

Doosan and the Doosan logo are registered trademarks of Doosan Corp. in the United States and various other countriesand around the world.

Doosan trademarks Infracore Construction Equipment America.

All rights reserved. | 132H-0 Doosan the Doosan logo©2013 are registered of Doosan Corp. in the United States and various other countries around the world. ©2013 Doosan Infracore Construction Equipment America. All rights reserved. | 132H-0

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CONTRACTORS & THE LAW

By Matthew Swanson & Bill Woodhead

To terminate, or not to terminate?

C

ontracts do not always end well.

Relationships between the parties in a contract may deteriorate for a variety of reasons—failure to meet timelines or budgets, deficient work and personality conflicts are a few of the common causes. In these difficult circumstances, the parties may agree to terminate, or one party may attempt to unilaterally terminate the contract. Unilateral termination has significant risks and should be carefully considered. Improper termination may lead to significant damages.

TERMINATION CLAUSES Well-drafted construction contracts often contain express termination clauses that outline when a party has a right to terminate. A contractor may be entitled to terminate a contract if work is suspended for a specified period of time. An owner may be entitled to terminate a contract if the contractor fails to perform the work properly, makes an assignment for the benefit of its creditor because of insolvency or fails to cure certain breaches. The parties may also be contractually entitled to terminate for convenience upon giving notice or paying a sum.

Prior to exercising any termination rights contained in the contract, it’s important to review the reasons for termination.

In order to rely on a contractual right of a termination, a party must ensure the contract actually provides a right to terminate for the breach in question and that the procedures laid out in the contract are followed. These may include requirements to give notice and provide an opportunity for the party to rectify a default.

COMMON LAW Beyond express termination clauses, there are a few circumstances that might lead to common law rights to terminate.

Under common law, a party to a contract has the right to terminate on the grounds of a fundamental breach. A fundamental breach goes to the root of the contract and has the effect of depriving the non-breaching party of substantially the whole benefit of the contract. Examples of fundamental breach include the failure by an owner to pay a contractor when payment is due and the failure of the contractor to have proper certification to carry out its work.

The right to terminate a contract also arises in the event of an anticipatory breach. This occurs when one party clearly and unequivocally informs the other party, either directly or through conduct, that they do not intend to perform the contract.

An interesting, albeit rare example, is illustrated in Trio Roofing Systems Inc. vs. The Atlas Corporation [2004] O.J. No. 707. In this case a contractor had hired a subcontractor to complete two identical roofing contracts.

Upon completion of the first contract, the contractor had only paid the subcontractor about 80 per cent of what was owed. The contractor had made unrealistic demands on the subcontractor to begin roofing the second project, even though the building was not ready to be done uninterrupted. The contractor had also made unfounded allegations of deficiencies as a basis for holding back payment and had demonstrated a pattern of failing to communicate. Given all of this, the subcontractor refused to begin the second contract

and claimed the contractor’s behaviour constituted an anticipatory breach of the second contract. The Court determined that it was reasonable to conclude that Atlas’s behavior would continue and, as a result, concluded Atlas was in anticipatory breach of the second contract.

MAKE YOUR ELECTION The existence of a right to terminate under the express terms of the contract or at common law does not necessarily mean a contract has to be terminated. The innocent party may elect to affirm the contract or accept a breach as a repudiation of the contract. If the innocent party elects to affirm the contract, then the contract is still in effect and the parties are bound to complete their respective obligations.

Conversely, acceptance of the breach as a repudiation of the contract brings the contract to an end.

When contemplating termination under the express terms of the contract or for a fundamental or anticipatory breach, a party must be careful to ensure they have proper grounds. If the process required to terminate is not followed under the contract or the conditions required for fundamental and anticipatory breach are not met, the party attempting to terminate the contract will be in breach and may be faced with a claim for wrongful termination and damages.

This article is for information purposes only and may not be relied on for legal advice.

Matthew Swanson and Bill Woodhead are lawyers at Borden Ladner Gervais LLP. Send comments to editor@on-sitemag.com.

54 / DECEMBER 2013

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