DECEMBER 2015
> IN SIDE <
TELEHANDLERS:
CONC ON-SRETE IT E PG. 39
GIVE AND TAKE PG.26
CONSTRUCTION FORECAST
DRONE USE TAKES OFF PG.23
THE ROAD AHEAD PG 18
PICKUPS
SHOW THEIR MUSCLE www.on-sitemag.com
PG.32
PM #40065710
Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. FTL /MC-A-1379. Specifications are subject to change without notice. Copyright Š 2015 Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.
HELPING TRUCKERS LIKE CASEY KING MOVE HEAVY LOADS AND LOWER THEIR REAL COST OF OWNERSHIP. Casey King, Independent Owner/Operator for Alaska West Express, relies on the powerful Freightliner 122SD for his toughest jobs. With a wide variety of suspension, frame and cab configurations, this truck was built for challenging loads and rough terrain. The 122SD can gross up to 105 tons with up to 600 horsepower and 2,050 lb-ft of torque, and the spacious, well-equipped cab keeps Casey comfortable in the Alaskan elements. That’s how the 122SD maximizes productivity and lowers his Real Cost of Ownership.
To learn more about the 122SD and watch a profile of Casey King, visit FreightlinerTrucks.com/122SD
EXPERIENCE THE POWER OF
HYUNDAI
Looking for power? Hyundai machines come standard with Hi-Mate RMS. That’s the power of technology, giving you the data you need to keep your projects running smoothly. Learn more at hceamericas.com.
VOLUME 60, NO.7 / DECEMEBER 2015
32
COVER STORY 18 CONSTRUCTION FORECAST 2016 The new government and the commodities slump are keys in assessing the road ahead for next year
DEPARTMENTS 6 Comment
82
The perfect storm
10 News Industry news
16 Construction Stats The latest news on construction activity and employment
COLUMNS 17 Software
23
26
Construction ERP – Going for the Big Picture
53 Risk The Growing Need for Strategic Information
54 Contractors and the Law The BC Builders Lien Act: Releasing the Holdback
52 Index of Advertisers 52
Index of Advertisers
features 23
DRONE USE TAKES OFF
Flying construction equipment won’t be a novelty for long
26
TELEHANDLERS – A LITTLE GIVE AND TAKE We put the 10,000-lb. telehandler under the microscope
32
PICKUPS SHOW THEIR MUSCLE Horsepower, torque and fuel economy are top of mind for light-duty pickup makers
39 CONCRETE ON-SITE Our World of Concrete preview gives you the highlights of this major industry event in Las Vegas in February. Plus: wood vs. concrete in six-storey buildings
on-sitemag.com / 5
EDITORIAL
The perfect storm
N
Get the latest construction news! Follow us on Twitter @OnSiteMag
6 / DECEMBER 2015
ot that long ago, when people at a party asked me what On-Site was about I’d say “construction.” They would nod diplomatically. Now, I say “infrastructure,” and I get their full attention. Infrastructure, a concept that most people grasped only vaguely a decade ago, has become a fashionable topic. Surveys reveal that large swathes of voters feel it is a suitable tonic for the country’s economic woes, even though for many, concerns about transparency remain to be dealt with. Politicians, too, have been crying infrastructure from the rooftops as a top national priority. And business is eager to join the party, as P3s make profitable, steady, long-term investments a reality. This struck me with great force at the Canadian Council for Public-Private Partnerships National Conference in Toronto in November. The politicians were very much front and centre, including Toronto Mayor John Tory, Ontario Finance Minister Charles Sousa and Quebec Finance Minister Carlos Leitao. With an infrastructure deficit ballparked at $400 billion, the hunger for infrastructure improvement in the room was quite apparent. Most people in the audience appeared to be quite taken with the new federal government’s aggressive stance on infrastructure investment. The investment community was also present in large numbers. Looking around the room in some of the conferences, I could only guess at the hundreds of billions of dollars parked on the chairs that were looking for worthwhile projects to invest in. The old rules are dropping away; it was clear that pension funds were quite prepared to push the boundaries of how they invested their funds. And of course there was a host of civil servants, lawyers and consultants eager to further the cause. What is getting in the way? First, reasonable standards of efficiency, transparency and risk have to be met, and many of the sessions at the
P3 conference focused on just that. At the end of the day, I think we might be looking at the perfect storm for infrastructure – a long-term period of investment that will be of historical importance. We’ve come a long way in the past 30 years, from infrastructure investment being something of a political reward to infrastructure as driver of job creation to the situation today, where it actually looks like investments will be made to strengthen the economy over the long term. Payback numbers of as high as 1.7 times were being tossed around during the event – every dollar invested in infrastructure pays you back $1.70 in long-term economic benefits. But as one speaker noted, that’s really just a number. It depends on the specifics of the project itself. Throwing money at a badly planned or unnecessary project is not going to get you any return on your investment. It is no longer enough to look for projects that are “shovel-ready.” The fact that they are ready to go is merely a detail. We have to look for bang for the buck, projects that will enrich the country and improve our productivity even as we pay the debt. Economist Dr. Jack Mintz, President’s Fellow, School of Public Policy, University of Calgary made that point in a news conference after the election. The focus should be on projects that enhance productivity. “We don’t need infrastructure spending to stimulate the economy. We need infrastructure spending to grow the economy,” he noted. The main obstacle I foresee for the next few years is simply capacity – Canada’s chronic shortage of construction talent. I suspect it’s going to be an interesting ride, as the infrastructure juggernaut gathers speed.
Three years. Zero oil changes. Guaranteed.* The next time your rotary-screw air compressors need an oil change, switch to groundbreaking, synthetic Mobil SHC™ Rarus Series oils. These lubricants have demonstrated the capability to last up to 24,000 hours in a compressor field trial† and are backed by a three-year warranty. Make the change to Mobil SHC Rarus Series compressor oils—your nextgeneration solution. Learn more at mobilindustrial.com
*To learn more about the product warranty, contact your Mobil lubricants representative or distributor. †Result relates solely to fluid performance in one rotary screw compressor. Performance will vary based on operating conditions and application. Copyright © 2015 Exxon Mobil Corporation. All rights reserved. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries unless otherwise noted.
CONTRIBUTORS
MEET OUR CONTRIBUTORS FOR THIS ISSUE JIM BARNES / Contributing Editor On Construction Forecast, 2016 How will the new federal government and ongoing weakness in the commodities markets shape the road ahead for Canadian contractors?
DAVID BOWCOTT / Senior vice-president, national director large/strategic accounts, construction and infrastructure services, Aon On The Growing Role of Strategic Information What’s the best way to share information on risk in the Canadian construction marketplace?
JEAN BURROWS / Freelance writer On Drone Use Takes Off What are the ins and outs of using drones profitably on your projects?
DAVID GODKIN / Contributing freelance writer & editor On Telehandlers – A Little Give And Take What do contractors say about the 10,000-lb.-class telehandler?
DIRK LAUDAN / Partner and ALEXANDER BJORNSON / Associate, Borden Ladner Gervais LLP On The BC Builders Lien Act: Releasing the holdback When can you release the holdback on a project?
ROSS MONSOUR / CRMCA On Markets and Their Material Opportunities How can you assess concrete vs. wood in six-storey building construction?
BILL ROEBUCK / Freelancer and voting member of the Automobile Journalists Association of Canada On Pickups Show Their Muscle What you need to know about 2016’s powerful, fuel-efficient pickups
JACOB STOLLER / Principal, StollerStrategies On: Construction ERP – Going for the Big Picture How can software boost your business’s efficiency?
8 / DECEMBER 2015
www.on-sitemag.com / Fax: 416-510-5140
PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com (on mat-leave) CONTRIBUTING EDITOR | James A. Barnes ART DIRECTOR | Mark Ryan (416) 442-5600 x3541 MRyan@annexnewcom.ca ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@annexbizmedia.com ACCOUNT COORDINATOR | Cheryl Fisher (416) 510-5194 CFisher@annexnewcom.ca CIRCULATION MANAGER | Anita Madden 416-442-5600 x3596 amadden@annexbizmedia.com Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com President & CEO Mike Fredericks Established in 1957, On-Site is published by Annex Business Media 80 Valleybrook Drive, North York, ON M3B 2S9 Publications Mail Agreement No. 40065710 ISSN: 1910-118X Printed in Canada Circulation email: apotal@annexbizmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 SUBSCRIPTION RATES Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Occasionally, On-Site will mail information on behalf of industryrelated groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer privacy@annexbizmedia.com Tel: 800-668-2374 Content copyright ©2015 by Annex Publishing & Printing Inc may not be reprinted without permission. On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. DISCLAIMER This publication is for informational purposes only The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals.
We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.
MEMBER OF
Canadian Construction Association
NEW
Weighs less. Carries more. Mack’s new mDRIVE™ HD heavy-duty automated manual transmission won’t weigh you down. This lightweight transmission is designed to withstand the wear and tear of your most demanding jobs. And it’s fully integrated to work seamlessly with the rest of your powertrain for improved efficiency, increased uptime and lower cost. With Mack, it takes less to get more done. MackTrucks.com/mDRIVEHD
INDUSTRY NEWS
INDUSTRY>NEWS WSIB to eliminate UFL Ontario’s Workplace Safety and Insurance Board is well ahead of a legislated timetable to reach financial sustainability. That will result in lower premiums paid by employers who fund the system and longterm security for the workers who depend on it, says WSIB chair Elizabeth Witmer. The system’s UFL, Witmer explained, is the difference between future obligations to injured workers and the money currently on hand to pay for them. “We now expect to eliminate the unfunded liability, or UFL, by 2022 – five years ahead of the schedule required by law,” Witmer said. WSIB anticipates that average rate reductions of between 10 and 15 per cent may be possible over a five-year period starting in 2017. That data was published in WSIB’s 2015 Economic Statement released this week. “Fundamental changes to the WSIB’s business have brought the UFL down by nearly half, from a high of $14.1 billion in 2011 to $7.5 billion in early 2015 – all while maintaining benefit levels for injured workers and achieving the best health and safety outcomes in Canada,” Witmer added. Those changes include safer workplaces, innovation in medical care and helping workers return to work, rising premium revenue and strong growth in the Investment Fund through the addition of operating surpluses, careful management and diversification. “Once the burden of the UFL is gone, employer premiums will consist only of new claims and administrative costs,” Witmer said. “That’s an estimated average premium rate of $1.40 to $1.50 instead of the current average $2.46 per $100 of payroll, making Ontario one of the lowestcost jurisdictions in Canada.” It means the WSIB will return over $2 billion annually to Ontario’s economy and help Ontario employers become more competitive, according to Witmer.
10 / DECEMBER 2015
PCA awards $10k to apprentices The Progressive Contractors Association of Canada has awarded $10,000 worth of scholarships to ten top young apprentices and students in the skilled trades. “PCA and our members are committed to the workforce of the future,” said PCA president Paul de Jong. “Without new blood, the construction industry won’t be able to keep up with demand. We need to do more to encourage young people that the skilled trades are an excellent career with a bright future.” Since 2007, PCA has donated $100,000, creating 10 annual $1,000 Alberta Apprenticeship and Industry Training Scholarships. To date, PCA has sponsored 77 tradesperson scholarships. “The credit really lies with our members who put their money where their mouth is and are ready to not only give scholarships, but give real jobs to younger people,” said de Jong, adding that the average age of PCA member employees is 10-15 years younger than other unionized employers. This year’s recipients are:
•G asfitter Tradesperson Scholarship: Nathan Ardley, Just In Time Furnace Inc. • Ironworker Tradesperson Scholarship: Julie Davidson, KBR Industrial Canada Co. • Carpenter Tradesperson Scholarship: Ronald Entz, CADC Developments Inc. • Crane & Hoist Tradesperson Scholarship: Craig Hamar, Clark Builders • Boilermaker Tradesperson Scholarship: Karina Leslie, Melloy Industrial Services Inc. • Electrician Tradesperson Scholarship: David Pearce, Multiphase Electric • Steamfitter-Pipefitter Tradesperson Scholarship: Lars Erik Poulsen, Department of National Defence • Women in Trades Scholarship: Kaja Prokopetz, Trotter and Morton Group of Companies • Welder Tradesperson Scholarship: Brock Reed, Baxters Welding Inc. • Millwright Tradesperson Scholarship: Corey Shannon, Guardian, a division of ShawCor Ltd.
Manitoba modifying WCB guidelines The Workers Compensation Board of Manitoba (WCB) is introducing changes to its current rate model to enhance fairness and balance, following consultations with stakeholders last year. “We gathered feedback from both employers and labour and are using it to help enhance our rate system,” says Winston Maharaj, WCB President and CEO. “Over the next five years, we’ll be phasing in changes to create a system that balances individual employers’ claims experience with collective liability.” By moving towards more collective liability, small and medium employers will be protected from the potential of a single claim drastically driving up their premiums. Instead, rate-setting for small and medium employers will place more weight on the collective experience of their industry. For larger employers, the rate model will continue to place more weight on their individual claims experience. In addition, the risk categories will be compressed to reduce the range between the maximum and minimum rates that employers can pay. The size of the range will also be reflective of the employer’s size. “We recognize that there are differences among small, medium and large employers, and we want to be responsive to their unique circumstances,” says Maharaj. WCB will also reduce the annual change limit that regulates how much rates are allowed to go up or down in one year to reduce volatility. Employers can expect changes to the current model to take effect in 2016 and 2017.
“IT’S EQUIVALENT IF NOT BETTER THAN THE OTHER ONES ON THE MARKET.”
Randy Kersten, owner – Kersten Construction, Inc. Omaha, NE
Scan the code or go online to see why Randy runs Doosan.
DoosanEquipment.com/Randy 1.877.745.7814 Doosan and the Doosan logo are registered trademarks of Doosan Corp. in the United States and various other countries around the world. ©2015 Doosan Infracore Construction Equipment America. All rights reserved. | 169
INDUSTRY NEWS
Quebec to revamp bidding Fixed-price contracts, standard bid documents and electronic bidding will be coming to Quebec government contracts under a new plan unveiled by the provincial government. The program, called Passeport Entreprises: Faciliter l’accès aux contrats de l’État, is intended to improve contract procedures and access to contracts for small and medium-sized businesses. According to a government release outlining the program, companies are experiencing difficulties in bidding on Quebec public tenders because the requirements are sometimes disproportionate to the project and the process is too complex. The government plans to set up a working group with representatives of SMEs and public bodies to review tender documents and ensure they are not excessive and don’t hinder competition. Among the proposals – which would be implemented by the end of 2016 – are that public bodies should be obliged to use standard bidding documents and that there be a uniform template for tender submissions. At least one SME would need to be invited during a call for tender, and there would be opportunities to bid electronically. The government may also consider using fixed price contracts as opposed to paying by hourly rates. The plan also aims to ensure that SMEs and start-up companies have access to more information about bids. In the past, companies often were not sufficiently informed about the strengths and weaknesses of their submissions, preventing them from improving for the next time. The government also said it wants to ensure that tenders don’t exclude companies due to “excessive demands” that can make it appear that a tender is targeted for certain firms. A new post, Commissioner for Public Contracts, is to be created. The office will be in charge of managing public contracts and be the watch dog to ensure integrity
12 / DECEMBER 2015
and sound practices. The intention is to transfer this function from the Autorité des marchés financiers, which currently carries out the overseeing role. The new Commissioner will have the power to cancel or require changes to a tender. Any recommendations from the Charbonneau Commission, which are due this fall, will be reviewed for possible inclusion in the new policy. The Quebec Construction Association (ACQ) supports the new office and procedures. “Many of the measures announced in the Passport Companies echo our recommendations and are likely to significantly modernize the public procurement regime in Quebec,” concluded ACQ President Manon Bertrand.
Filipchuk named PCL CEO Dave Filipchuk has been named PCL’s incoming president and CEO. “Succession planning is all about having the right people in the right place at the right time,” noted current PCL president and CEO Paul Douglas. “Dave Filipchuk has my, and the entire board of directors’, full support in officially becoming the seventh CEO of this great company in November 2016.” PCL first unveiled its “Office of the CEO” structure, consisting of eight senior executives, in 2013. Douglas took over the lead position from Ross Grieve in 2009. PCL has a successful and proven track record in implementing this process. The new Office of the CEO structure will remain in place until November 1, 2016, at which time Filipchuk will succeed Douglas. Douglas will assume the role of executive chairman, working full-time in transition with Filipchuk until February 1, 2017. At that time, he will become chairman, and his fulltime responsibilities will cease.
All changes are effective November 1, 2015. Among the highlights: • Dave Filipchuk, president and COO, Canadian and Australian Operations, will become deputy CEO. Filipchuk has been with PCL for 31 years. • Rob Holmberg, a 28-year PCL veteran, will assume the role of president and COO, Canadian and Australian operations. • Chris Gower becomes COO, Buildings. • Gordon Panas remains as CFO. • Steve Richards remains as general counsel. • Shaun Yancey remains as president and COO, US Operations. • Ian Johnston remains as COO, Heavy Industrial. • Luis Ventoza remains as COO, Civil Infrastructure.
Cooper buys SMS Rents GTA-based equipment-rental company Cooper Equipment is buying SMS Rents, formerly a division of SMS Construction and Mining Systems Inc. Cooper Equipment is a portfolio company of SeaFort Capital, a Halifaxbased private investment firm. “By combining SMS Rents and Cooper, we are creating a strong Canadian business of considerable scale and 21 full-service branches with over 300 employees which will provide us broad geographic coverage across Ontario and Quebec,” notes Darryl Cooper, CEO of Cooper. Established in 1972, Cooper Equipment is a privately-owned full service construction equipment rental company servicing contractors throughout the Greater Toronto Area. The firm specializes in compact equipment rentals and offers a broad range of construction equipment and supplies, with service and support, through six locations.
INDUSTRY NEWS
Hatch Mott MacDonald to split After a 20-year joint venture, engineering firm Hatch Mott MacDonald has decided to split into two business. The Canadian business will become part of Hatch, while the U.S. business will become part of Mott MacDonald, according to a release from the firm. HMM’s pipelines business, which operates in both Canada and the U.S., will join the American firm, Mott MacDonald. Hatch Mott MacDonald was created 20 years ago as a joint venture providing engineering and professional services in North America. Known especially for award-winning tunnelling and transportation projects, HMM also works in water and wastewater and oil and gas pipelines markets. It has 3,000 staff and 77 offices throughout the U.S. and Canada. “At a time of significant renewal in North American infrastructure, this change allows Hatch and Mott MacDonald and the staff of HMM to build and invest in new ways,” Keith Howells and John Bianchini, chief executive officers of Mott MacDonald and Hatch respectively, said in joint statement.
Infrastructure provides massive ROI The economic importance of public infrastructure investment is vastly greater than previously found using traditional economic models, according to a report published recently. Using unique agent-based modelling, the Canadian Centre for Economic Analysis (CANCEA) team found that public infrastructure investments generate an economic return on real GDP that is almost eight times as great as the impact predicted by traditional economic models. The report found that for every $1 billion invested in infrastructure as part of Ontario’s confirmed 10-year, $130-billion plan, an additional $1.7 billion in provincial tax revenue will be generated. Investing in Ontario’s Public Infrastructure: A Prosperity at Risk Perspective uses a big data/big analytics approach to
14 / DECEMBER 2015
“Under Gardiner” to transform expressway lands A $25-million project to transform the public space under the Gardiner Expressway in downtown Toronto will begin construction this summer. Funded by philanthropists Judy and Wil Matthews, Project Under Gardiner will see the creation of more than four hectares of new public space and 1.75 km. of multiuse trail beneath the elevated expressway, from just west of Strachan Ave. to Spadina Ave. Completion is planned for 2017. This new public space will create connections between some of Toronto’s newest and most dense neighbourhoods, including Liberty Village, Niagara, the Fort York neighbourhood, CityPlace, Bathurst Quay and Wellington Place. Programmable spaces will showcase Toronto’s unique cultural and related offerings. These spaces have been conceived as “rooms,” defined by the series of concrete post-and-beam structural elements supporting the Gardiner. Up to 55 civic rooms can be fashioned to house a wide variety of year-round programming. City planner and urban designer Ken Greenberg heads the design team, working with Adam Nicklin and Marc Ryan of Public Work, an urban design and landscape architecture studio. Waterfront Toronto will manage and build the project on behalf of the City, and the Matthews’ gift will leverage the City’s existing investment in rehabilitating and maintaining the expressway. assess infrastructure impacts. In a nutshell, the method is a framework for modelling a dynamic system by means of individual agents (entities) and their interaction with each other. “We hope (the research) helps inform the broader discussion about how investment in our public infrastructure can be a catalyst to promote long-term prosperity,” said Paul Smetanin, the team leader. Sean Strickland, CEO of the Ontario Construction Secretariat (OCS), says: “Now we know just how much tax revenue these investments generate for governments and how they enable the broader economy to grow much more strongly and for far longer.” “This modelling shows us that a $1-billion investment in public infrastructure supports 85,000 job-years in Ontario over the next 30 years,” noted Andy Manahan, executive director of the Residential and Civil Construction Alliance of Ontario.
Graham joins Sask. Hall of Fame. Graham Construction has been inducted as the 29th member of the Saskatchewan Business Hall of Fame. “Since its start as P. W. Graham Construction, right here in Saskatchewan,
and through its emergence into the top ranks of construction companies across North America, Graham’s success has mirrored the growth of this province, generation after generation,” said Steve McLellan, CEO of the Saskatchewan Chamber of Commerce. P. W. Graham & Sons got its start in 1926, building railway stations for the Canadian Pacific Railway in Moose Jaw. Graham is now primarily Western Canadabased but has offices as far east as Mississauga, Ont. It has established a presence in the U.S., with work going on in Washington, Texas and New York State. Graham has diversified, providing construction services to every sector of the Saskatchewan economy. Services are delivered to the mining, power and energy sectors to a long list of clients. “In the 1980s was probably the most significant change, because in 1984 the employees purchased the assets of the company from the Graham family and that’s when everything started to change for us and our whole growth curve really moved,” said Beck. The company now sees gross annual revenues exceeding $2 billion and was ranked 6th in the annual On-Site Canadian Top Contractors Survey.
CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry
MATERIALS DRIVE NON-RES CONSTRUCTION COSTS DOWN
CEMENT PRODUCTION DECLINES IN SEPTEMBER Canadian cement production fell in September, according to a November report from Statistics Canada. Cement manufacturers produced 1.2 million t. of cement products, a drop of 2.8 per cent from August. On the upside, shipments of domestic cement increased 6.2 per cent to 1.3 million t., the statistical agency noted. Including imports, shipments were up 5.6 per cent to 1.4 million t.
ICI PERMIT TOTAL GREW IN SEPTEMBER For the first time in three months, building permits for the nonresidential sector saw an increase in September, Statistics Canada reported in November. However, building permits as a whole declined. The $7.1 billion total was down 6.7 per cent from the previous month – the second consecutive monthly decline. The drop was largely attributed to residential and commercial construction in Ontario. Construction intentions for non-residential buildings rose 1.6 per cent to $2.9 billion with gains being recorded in six provinces, led by Saskatchewan, followed by Alberta and Quebec. Ontario reported the largest decline, followed by British Columbia. In the institutional component, the value of permits rose 15.6 per cent to $744 million in September, the first increase in three months. The advance at the national level was attributable to higher construction intentions for medical facilities. Gains in four provinces, led by Saskatchewan and Ontario, were sufficient to offset declines in the other provinces. British Columbia and Alberta recorded the largest declines in construction intentions for institutional buildings. Billions
HOUSING STARTS TREND UPWARDS: CMHC The trend measure of housing starts in Canada grew from 202,793 in September to 206,089 units in October, according to Canada Mortgage and Housing Corp., Ottawa. The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts, according to CMHC. “New condominium and rental starts continued to push the trend higher in October,” said Bob Dugan, CMHC’s chief economist. “Rental starts across urban centres are poised to reach their highest level since 1992 due to low vacancy rates in recent years.” The SAAR of urban starts fell in Ontario, Quebec, the Prairies and Atlantic Canada, but increased in British Columbia. Rural starts were estimated at a seasonally adjusted annual rate of 16,623 units. Thousands
TOTAL VALUE OF PERMITS
9.5
Lower material prices have resulted in the composite price index for non-residential building construction to fall for the first time in nearly six years, Statistics Canada reported today. The third quarter decline of 0.4 per cent compared with the previous quarter was the first decline since the first quarter of 2010. The decrease was mainly the result of lower material prices reported by contractors in the structural trades. Of the seven census metropolitan areas surveyed, Calgary and Edmonton recorded the largest decreases (both at -1.3 per cent), followed by Montréal (-0.6 per cent). Halifax, Toronto and Vancouver reported the only increases (all +0.3 per cent). Year-over-year, the composite price index for non-residential building construction rose 0.5 per cent. The largest year-over-year increase was recorded in Toronto (+1.8 per cent), while Edmonton (-1.6 per cent) and Calgary (-1.2 per cent) both reported decreases compared with the third quarter of 2014.
240
HOUSING STARTS IN CANADA – ALL AREAS
9.0 8.5
215
206,089
8.0 7.5
190
7.0
198,065
6.5
165
6.0 5.5 5.0
July
2010
2011
2012
Seasonally adjusted Source(s): CANSIM table
16 / DECEMBER 2015
2013 Trend Cycle
2014
July 2015
140
October 2013 Housing Starts, SAAR
October 2014
October 2015
Housing Starts, Trend Line (6-month moving average)
Software By Jacob Stoller
Construction ERP –
C
Going for the Big Picture
onstruction firms are not known for being early adopters of technology, yet in some respects, their information-handling needs are particularly urgent. With a huge diversity of schedules, human resources, subcontractors, deadlines and customer relationships, it can be hard to get a consolidated view of this business. “The reason we need innovative software, from a business perspective, is that construction is still 60 per cent inefficient in terms of how the construction industry performs work,” says Joe Jagodich, senior vice president and CIO at EllisDon Corp. in Mississauga, Ont. “Much of the problem has been the disparate way people handle information.” Jagodich is also President of Gate Three, an EllisDon subsidiary that has developed an ERP system for the construction industry. Gate Three grew out of a system the firm had developed in-house for its own use. According to Jagodich, the development team had access to the entire knowledge base from EllisDon’s 60-year history. His mandate was to make sure that the product could be adopted in the field, and in corporate departments, without the pains attributed to non-constructionspecific ERP systems. “My mandate was very clear – our CEO didn’t want to change his successful business model to accommodate a commercial ERP software package,” says Jagodich. The challenge with ERP systems in construction is to create a computing environment that doesn’t force users to go back and forth between isolated islands of information. “The big thing here is visibility of the end-to-end process flow,” says Suanne McGrath-Kelly, senior director with London,
Ont.-based Info-Tech Research Group. “That includes the company, the customer and third parties.” Company data, for example, includes a wide range of parameters such as skills data, payroll information, assets managed, safety requirements, and compliance requirements – many of which may have required separate applications in the past. When customer and third-party variables are added to the mix, the task becomes daunting. One of the trickiest areas, says McGrath-Kelly, is getting a clear financial picture of a project. Since accounting in the construction business is primarily project accounting, there is a need for robust tools that allow business owners to establish visibility into costing baselines, project status, and budget, which in turn needs to be broken down into categories. “One big budget number is not helpful,” she says. “You need to break that budget down at the major category level.” The heart of Gate Three is a datahandling platform that can support multiple types of information through a series of 29 integrated and configurable modules. The application creates a “cradle to grave” picture of an entire project, from pre-construction to the point where the finished building is handed off to a facilities manager. This allows any person who touches the project to work within a single system without ever having to leave it. Notably, the app is designed to consolidate data from multiple BIM (Building Information Modeling) models created by standard applications like AutoDesk. The key here is being able to integrate, for example, a structural model with the HVAC and electrical models from subcontractors. The app is designed to support very large firms like EllisDon as well as the
second tier – construction companies whose revenues range from $50 million to $100 million. Smaller firms can utilize selected modules from Gate Three to cover the most essential core functions. According to McGrath-Kelly, many smaller firms opt for a smaller-scale ERP system, such as the hosted solution NetSuite. “If you’re a smaller firm, you need to identify your minimum viable option,” says McGrath-Kelly. “I would focus on having a central place for my employees, my customers, my projects and my vendors and contractors. At baseline, a lot of vendors are providing these core capabilities. The challenge is in the depth, for example – details in areas such accounting and budgeting.” Adoption by users is, of course, still one of the major hurdles, and it calls for a balanced approach. “I call it a stickand-carrot approach,” says McGrath-Kelly. “Top management has to drive this, but the company needs to communicate value to everybody the software touches in the organization.” A supervisor who enters the required information into a mobile device at the end of the day, for example, will have a history to refer back to if problems occur. McGrath-Kelly recommends creating a stakeholder map showing the responsibility of each stakeholder, the benefits they’ll derive from the system, and the devices that they have available. The reasons for adoption, however, may soon be more compelling. As Jagodich points out, the “old school” facilities managers who could instantly tell you how many electricians are on site or where to find a heating duct on the 15th floor will be soon retiring – never to be replaced. The next generation will likely depend on their IT systems for answers that their predecessors just pulled out of their heads. Jacob Stoller is a principal of Torontobased consultancy StollerStrategies. Send comments to editor@on-sitemag.com.
on-sitemag.com / 17
FORECAST
CONSTRUCTION FORECAST
THE ROAD AHEAD BY JIM BARNES
F
orecasting the construction business for the year to come is always a challenge, with imponderables such as geopolitical instability, economic turbulence, commodity price fluctuations and other “black swans.” This year is even tougher, tossing a brand new federal government into the mix. Let’s start with the great big problem, the decline in the price of oil. “Capital spending in the oil and gas sector is expected to drop by some 40 per cent in 2015, dealing a major blow to the non-residential and engineering construction sector – as well as support activities for mining, oil and gas – in the oil patch.” That ominous quote comes from Provincial Economic Forecast, published by TD Economics in October. A modest recovery in crude prices is expected for next year, but nothing that would lead to a “V-shaped” rebound in growth, researchers say.
18 / DECEMBER 2015
Not only did a lot of construction related to the oil patch go off the rails, but provincial economies lost access to those royalties to finance other construction projects. That was followed by growing unemployment and weaker consumer confidence in the affected areas. Low oil prices are not entirely bad for the industry. The weak looney that resulted benefits exporters, especially in manufacturing. The U.S. economy is quite robust and Canada’s manufacturers are starting to get back on track as contributors to employment and the GDP. If the trend continues, industrial construction will benefit. Costs are another possible benefit. There is downward pressure on fuel and material prices. “Of course, the decline in price does not translate directly to savings at the fuel pump or in your next batch of asphalt,” points out Andy Manahan, executive director, Residential & Civil Construction Alliance of Ontario. However, he notes, “The inflation rate for construction will
probably be within the usual inflation rate, but that’s hard to predict.”
THE NEW GUYS Anecdotally, the construction industry seems to be feeling a lot of optimism about the new federal government. The Liberal Party campaigned with a very aggressive commitment to infrastructure, including a willingness to run deficits for a few years to grease the wheels. In a nutshell, they committed to doubling the current federal infrastructure investment to $10 billion per year for each of the next two fiscal years and increasing the base infrastructure spend each year for the next decade. That translates to an increase of $9.5-billion annually, bringing the federal infrastructure investment from about $65 billion to nearly $125 billion. They also said a Canada Infrastructure Bank would be established to help finance infrastructure. It was a popular stance. Infrastructure
is widely accepted as an investment that offers considerable payback (see Infrastructure Provides Massive ROI, page 14) and surveys revealed wide public support for the notion of infrastructure spending as a way to kick-start the economy. Political awareness of the value of infrastructure investment beyond political paybacks or job creation seems to have sunk in. “An infrastructure deficit can decimate a nation’s economy just as much as a fiscal deficit can,” notes Atkinson. The Liberals also championed pushing the decision-making process down to the municipalities, promising to streamline the application process. In keeping with that commitment was the decision to drop mandatory P3 screening from projects valued at $100 million or more – an onerous and time-consuming procedure when a P3 did not appear to be an appropriate delivery mechanism and was unlikely to be used. “The program has to be flexible,” said Atkinson. “The priorities at the municipal level are most important. They are the custodians of this infrastructure, they are the ones that have to set the priorities – the priorities can’t be set in Ottawa.” If there is a fly in the ointment, it is the declaration by Finance Minister Philip Morneau that his government inherited a $3 billion deficit, not a $2 billion surplus, from its predecessors. “The simple truth is that the economy hasn’t performed as well as last projected in the last budget,” he said, predicting 1.5 per cent growth instead of the two per cent cited by the Conservatives. That puts pressure on Liberal deficit projections. Even so, that is not an unreasonably large deficit and Atkinson cautions not to make too much of it. “The international community doesn’t look at whether a particular government is headed for a deficit or surplus one year or not. What they look at is the GDP,” he notes. “Is the economy growing?” You can manage your debt, but if the economy is not growing, you have not achieved anything.” “There were a lot of good things learned from the previous (Building Canada) program – to have a one-page application so that you could actually get projects into the ground relatively quickly,” says Atkinson. “The Liberal government decided,
FORECAST
Ontario Finance Minister Charles Sousa confers with Perrin Beatty, president and CEO of the Canadian Chamber of Commerce and Quebec Minister of Finance Carlos Leitao on future demand for infrastructure at the CCPPP National Conference. quite prudently I think, to use the same infrastructure as the building Canada Plan – to use the same elements for the same kinds of infrastructure.”
EXPORT POTENTIAL Another developing trend is export. Many large Canadian construction firms already export services and expertise, in many cases to the U.S. Other markets are beckoning. The Liberal government is reviewing the recently signed Trans Pacific Partnership (TPP), a trade agreement reducing or eliminating trade barriers among several Pacific Rim countries including Canada and the U.S. Construction procurement may well be on the table. Export was a theme at the recent National Conference of the Canadian Council for Public-Private Partnerships (CCPPP) in Toronto. Besides a keynote by international trade lawyer Gary Horlick on the TPP, Edmundo Gamas, executive director of the Mexican Institute of Infrastructure Development addressed the gathering and a session was held on business in Southeast Asia as well as on the next generation of P3s in the USA. The room was full of invetment specialists looking for places to invest their assets and senior politicians eager to get more infrastructure into the ground. Issues such as transparency, risk and data analysis were front-and-centre. One session on project size was particularly illuminating. As the process is better understood, smaller P3 deals may become feasible… on the $50 million scale, as well as the $100 million.
SECTOR ACTIVITY Residential construction may soon be due for a breather, according to Canada Mortgage and Housing Corp.’s fourth quarter 2015 Housing Market Outlook, Canada Edition (published at the end of October). It calls for housing markets to moderate in 2016 and 2017. “In 2015, increased housing market activity in provinces like Ontario and British Columbia – provinces that have benefitted from declining energy prices, a lower Canadian dollar and continued low mortgage rates – offset slowdowns in oil-producing provinces like Alberta,” said Bob Dugan, CMHC Chief Economist. “We expect, however, that this counterbalancing effect will decrease over time. As such, housing starts and MLS sales are projected to moderate in 2016 and 2017.” CMHC expects 2015 housing starts to range between 162,000 and 212,000 units, with a point forecast of 186,900 units. For 2016, housing starts are forecast to range from 153,000 units to 203,000 units, with a point forecast of 178,150 units. In 2017, starts are anticipated to range between 149,000 and 199,000 units, with a point forecast of 173,650 units. Non-residential and engineering construction are centrepieces in provincial budgets across the country. The August issue of On-Site listed a number of billiondollar projects that are in the works across the country (Billion Dollar Babies). “Pretty much all the provinces have significant, ten-year plans for infrastructure investment,” says Atkinson.
on-sitemag.com / 19
★ ★
OFTEN TESTED. NEVER BESTED.
Built to stand up to everything the job delivers and do it every day. That’s the beginning of
what it takes to be a Western Star. Incredible durability, comfort and style, all crafted with an ®
attention to detail that makes each one an excellent value for years to come. And there’s only one way to experience it – behind the wheel. It’s time to GET YOUR TOUGH BACK. Find a dealer at westernstar.com.
Western Star - A Daimler Group Brand
WS/MC-A-536 Specifications are subject to change without notice. Western Star Truck Sales, Inc. is registered to ISO 9001:2008 and ISO 14001:2004. Copyright © 2015 Daimler Trucks North America LLC. All rights reserved. Western Star Truck Sales, Inc. is a subsidiary of Daimler Trucks North America LLC, a Daimler company.
FORECAST RECRUITING CHALLENGES
IN THE PROVINCES
Once again, one of the great challenges faced by the industry next year will be a familiar one… finding staff. From 2011 to 2014, national growth was 62,400 jobs, while gains across the 10-year scenario period, 2015-2024, will be just 81,000 jobs, as noted in BuildForce Canada’s Construction and Maintenance Looking Forward, published in March 2015. However, demand created by expansion pales in comparison to the demand generated by upcoming retirements, the document says. As many of a quarter of a million replacement hires could be necessary by 2019. “Meeting these demands from unemployment, moving the workforce across markets and provinces, and attracting Canada’s youth into construction will not be enough. An additional 100,000 new workers from outside construction – and likely outside of Canada – will be needed,” according to BuildForce. “The availability of experienced, skilled workers and construction management personnel and trades is going to be a challenge,” says Atkinson. “I’m not talking about new entries… I’m talking about people with 10 or 15 years of experience.” Many in the industry are optimistic about next year… but they are not letting that tamper with their sense of realism. “So far, so good,” says Manahan. “Everyone is saying the right things about spending money on infrastructure. We just hope it’s the right infrastructure – the stuff that’s going to give you the best return on investment.” When all is said and done, 2016 does seem to present opportunity to the agile contractor. “We haven’t done any surveying, so anything I say will be anecdotal. But generally, I’ll say we err on the side of optimism that it’s going to be a decent year,” says Manahan. “Overall, I think the prognosis for Canada, especially infrastructure sector, is still buoyant. Modest growth is expected,” notes Atkinson.
British Columbia, Ontario and Manitoba will lead the nation in growth, as they are well-positioned to capitalize on rising export demand, notes TD Economics. BRITISH COLUMBIA: Real GDP growth is estimated at 2.5 per cent in 2015 – more than double the national rate. Over the 2016-17 period, it should be just above two per cent annually. BC’s manufacturing sector had a nominal sales gain of close to five per cent through the first half of the year, according to TD Economics. ALBERTA: Real GDP contracted 1.4 per cent in 2015, according to researchers. Growth over the 2016-17 period is set at around 1.4 per cent per year. Output in the construction sector is projected to contract by more than 20 per cent this year, largely reflecting a 25 per cent drop in non-residential and engineering construction. Housing starts are also forecast to decline by some 10 per cent this year. Construction activity is expected to decline over the 2016-17 period. SASKATCHEWAN: Low oil prices are expected to lead to a 0.8 per cent contraction in real GDP this year. “Engineering construction is assumed to decline in 2015, in line with lower rigging activity,” TD Economics researchers said. Capital spending is anticipated to move lower next year before stabilizing in 2017. MANITOBA: Solid gains in the manufacturing, construction and agricultural sectors should deliver real GDP growth of more than two per cent this year and over the 2016-17 period, according to TD Economics. ONTARIO: Manufacturers are benefiting from low exchange rates and GDP will rise
by two per cent as exports rise. A 2.4 per cent increase in real GDP is predicted for 2016, with growth projected at two per cent in 2017. Nominal GDP growth in Ontario is expected to average 4.2 per cent over the 2016-17 period, according to TD Economics. The province has announced an aggressive, 10-year infrastructure investment program totalling more than $130 billion. QUEBEC: Real GDP is expected to increase by 1.3 per cent (year over year). “A pullback in activity in the province’s construction sector has weighed on economic activity so far this year,” noted researchers. TD Economics calls for new residential construction to move lower over the 201516 period before rising in 2017. The Quebec Infrastructure Plan has allocated investment of $88.4 billion over the coming decade. ATLANTIC CANADA: The dramatic drop in commodity prices that began last summer is continuing to impact development activity in Atlantic Canada, especially in Newfoundland and Labrador, noted the Atlantic Provinces Economic Council’s Major Projects Inventory, published in May. Research shows spending on major projects in 2015 is expected to total $13.3 billion in Atlantic Canada, down five per cent from last year. “Spending for this year is up slightly in the three Maritime Provinces and down nine per cent in Newfoundland and Labrador,” said Patrick Brannon, APEC’s Director of Major Projects. “In Newfoundland and Labrador, weaker oil and iron ore prices are impacting the pace of development and activity on the Hebron oil project peaked in 2014.”
2016: Infrastructure spending seems to be on track.
Jim Barnes is On-Site’s contributing editor. Send comments to editor@on-sitemag.com.
on-sitemag.com / 21
All stackers create material segregation.
WE DISAGREE.
SuperStacker速 Wizard Touch速 automation simplifies stockpiling. Fully-desegregated stockpiles mean no re-blending of products. Up to 30 percent more stockpile capacity than conventional stackers. Cam-Arm linkage maintains constant radius for uninterrupted stockpiling.
TOUGHNESS REFINED. Aggregate
Recycle
Construction
Infrastructure
Mining
Loading/Unloading
Energy
www.kpijci.com
Quadcopter from The Sky Guys.
DRONES
DRONE USE TAKES OFF Flying construction equipment won’t be a novelty for long BY JEAN BURROWS
L
ook, up in the sky! It’s a bird, it’s a plane – it’s a construction drone! Drones are coming to the construction industry and experts concur that they soon will be a common tool on jobsites. The cost of drones (also known as unmanned air vehicles or UAVs) is dropping as more manufacturers are moving into the commercial market – which falls between the hobby models you buy in retail stores and those built to military specs. Canada is ahead of the curve in North America, at least in terms of regulation. While the U.S. Federal Aviation Agency does not permit the use of drones for commercial purposes, in 2014 Transport Canada revised regulations for use of three classes of drones – less than two kg, 2.1 to 25 kg, and more than 25 kg (see sidebar). “The (sales) curve is just starting to go up, it will be a pretty vertical market,” says Tom Range who heads GeoShack’s newly formed North American Imaging Group. The company launched the group in June, in response to customer demand. Its mandate is to supply and support UAVs, mobile mapping, and imaging solutions. “Drones are already being used in Canada for industrial purposes and we have an established customer base in Canada,” Range says. “We plan to build on that.” “Within the construction industry, there
are a number of different applications that can benefit from the collection of aerial images and data,” says Andrea Sangster, senior marketing manager of Aeryon Labs. Inc., a UAV manufacturer based in Waterloo, Ont. “They include site surveying and planning, construction documentation, safety and inspection, environmental reporting, lead line/cable delivery and positional marking.” Data captured by a drone’s camera can be exported in common software formats such as Autodesk, GIS systems, Wavefront, 3DS, Google Earth and PDF to create 3D
digital models, autonomous GPS wave points, georeferenced surveys, digital elevation models, 4K high resolution model inspections and site plans and models. They can also be used to perform volume and planning calculations and thermal calculations. Drones can be programed to fly a consistent path at a consistent height to ensure a consistent data set, without the human error that often creeps into data collection. Safety is another important element of drone use. “A huge benefit in the construction industry is that drones can remove danger from the human element – not
Drone’s eye view of the Elora Quarry in Ontario. (Aeryon photo.)
on-sitemag.com / 23
DRONES having to send employees into unsafe environments for data collection or inspections,” says Adam Sax, president of The Sky Guys, an Oakville, Ont. firm that started its professional UAV business last year. While drones clearly have a role to play on construction sites, contractors need to consider whether they actually need to own the equipment or whether they’d be better served using a service provider on an as-needed basis. “Although companies may be interested in doing it in house, they are finding that
THE RIGHT STUFF Here is a brief rundown of Transport Canada requirements for drone operators (more information is available at www. tc.gc.ca/eng/civilaviation/standards/standards-4179.html). The easiest regulation, which covers all sizes of drones, is that they must be operated safely. This requires the operator to: • Fly only during daylight and in good weather • Always keep the drone in sight • Respect the privacy of others • Not fly close to airports, in populated areas, near moving vehicles, or higher than 90 metres. For commercial applications, operators of UAVs between 2.1 and 25 kg that meet exemption requirements do not need permission to fly. If you think that that sounds easy, consider that there are 58 conditions in the areas of flight conditions, pilot training, UAV system, and reporting requirements that must be met to gain the exemption. A special flight operations certificate (SFOC) is required if the operator cannot meet the exemption requirements for UAVs between 2.1 and 25 kg, or if the UAV weighs more than 25 kg. There are a number of SFOC application processes depending on the nature and use of the UAV. The more complex and risky the proposed operation, the more thorough and onerous the application process.
24 / DECEMBER 2015
the requirements are more complex than they realized,” says Sax. “Combined with the cost of equipment and liability insurance, the time line to obtain permits, etc., it can be very expensive to insure and have a fully trained team.” “A lot of technology has yet to come to fruition,” says Matt Nicholls, editor of Helicopters Magazine. “Right now, for example, flight time is limited by the battery charge time.” The technology is evolving quickly, and early adopters may run the risk of investing in equipment that becomes outdated before the return on investment is realized. “Built-in failsafes and other safety features will become standard (some could become mandatory) as the technology and capabilities advance,” says Sangster. That said, the cost for a mapping system drone is “right in the range that contractors would be paying for other mapping, data collection, and layout tools,” says Range. Staff training and gear maintenance costs also have to be considered. “We train our customers to use our UAVs,” says Sangster. “(And) there are organizations that offer UAV training for a number of different systems. Some will also offer aviation ground school so that pilots can learn more about aviation and airspace regulations.” There are also post-secondary institutions that offer UAV training/certification programs within their curriculum. Transport Canada requires a Special Flight Operating Certificate (SFOC) for most commercial drone use. SFOC applications are assessed on all aspects of the proposed UAV operations, including the experience and qualifications of the applicant and the operator, the nature and complexity of the proposed operations, the type and size of the UAV and the UAV’s command and control system. It can take weeks to process SFOC applications, which adds a step to the planning process, although subsequent applications may take less time. A service provider, however, may have an unrestricted planning certificate so it can be more nimble in responding to project needs. These certificates are usually issued based
Applications include site surveying and planning, construction documentation, safety and inspection, environmental reporting, lead line/cable delivery and positional marking. on a safe operating record, which obviously takes time to establish. “Skilled operators are able to deliver the best possible results and reduce the risk of damage or injury,” says Paul Baur, marketing and business development manager for K2i Unmanned Systems, based in Vancouver, B.C. Liability insurance costs are also part of the financial equation, unless you are using a service provider that carries its own aviation insurance. Drone insurance packages are now offered in Canada by Zurich Canada as well as through specialist aviation insurers. Whatever your decision – whether to invest in the technology yourself or hire a service provider – it’s clear that the use of drones for commercial purposes is growing exponentially. In a March 2015 article, the Globe and Mail reported that Transport Canada issued 1,672 permits for commercial drone applications in 2014, up from 66 in 2010. The numbers connected to the Canadian construction industry have been harder to determine, along with other details about drone use. Canadian Construction Innovations (CCInovations) has recently wrapped up one piece of research and the resulting publication, The Use of Drones in Canadian Construction, is available through www.ccinnovations.ca. “It’s not just a phase or a fad – drones will become another business tool like telephones and computers to use when the application calls for it,” says Sax.
fuel efficiency
reliability
DD16®
DD13® DD15®
profitability
YOUR TRUCKS KEEP YOUR BUSINESS GOING. OUR ENGINES KEEP YOUR TRUCKS GOING. Our Detroit DD13,® DD15,®, and DD16® engines are some of the best investments you can make in your business. Each delivers the optimum combination of durability, power, and fuel efficiency. But most importantly, they keep your trucks working hard on the jobsite day in and day out. With this kind of uptime, the bottom line is, Detroit engines can help lower your Real Cost of Ownership. TM
SM
Demand more for your business. Visit DEMANDDETROIT.COM
DDC-EMC-ADV-0016-0315. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © 2015 Detroit Diesel Corporation. All rights reserved. Detroit ™ is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.
TELEHANDLERS
TELEHANDLERS – A LITTLE GIVE AND TAKE We put the 10,000-lb. telehandler under the microscope BY DAVID GODKIN
Genie GTH 1256
H
ave telehandlers gotten better over the years? Sure, say contractors. Could they be made even better? We think so, manufacturers tell us. To find out, we looked at one particular class of telehandler common to the construction industry – the 10,000-lb. telescopic material handler. Stability, safety and ergonomics, better repair and mainteSkyTrack 10054.
26 / DECEMBER 2015
nance – we wanted to hear what contractors had to say. Chad Buckley is yard super and “tele” operator at Dell-Core Equipment Inc.’s fiveand-a-half acre yard in Bolton, Ont. Buckley routinely uses a Caterpillar TL943 and Genie 1056K telehandler so carpenters have what they need for building forms, walls etc. “I wouldn’t want to do what we do with a
straight mast. Once I have to flip walls and stuff like that, we’re going up 10, 15 feet high,” he says. Most of the materials — lumber, aluminum, concrete, fibreglass — are bundled, stacked and loaded onto 4X4 trucks and shipped to site immediately. Both the Genie and Cat are inspected every morning, serviced every six weeks and safety certified every year. You’d think that would be enough to keep both machines running forever, but it’s not. Buckley estimates that a machine will break down about once a month, often for about a day, usually because of a blown hydraulic hose. “At 4,000 psi, those hydraulic hoses are vulnerable to hot, highly pressurized hydraulic fluid,” he notes. Juan Molina at AT-PAC Complete Scaffolding Solutions in Edmonton calls the
CONGRATULATIONS TO THE 2015 FREIGHTLINER HARDEST WORKING CITIES
INDIANAPOLIS SALT LAKE CITY NASHVILLE LOS ANGELES TORONTO DALLAS
FOLLOW THE NEWS AND SEE WHICH CITIES WE HONOR NEXT YEAR AT HARDESTWORKINGCITIES.COM/UPDATES.
Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. FTL /MC-A-1409. Specifications are subject to change without notice. Copyright © 2015 Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.
TELEHANDLERS JCB 536-60AG, “a really solid machine,” a 10,000-lb. capacity unit well-suited to construction jobsites. It lifts bundled steel beams or palletized materials such as side brackets and jacks three stories high. Squaring up the material to the load is matter, he
says. “If you’re off by three inches, you have to pull it back to realign yourself. That can cost you about 10 minutes of work, because hitting that mark is really hard. On a forklift, all you would need is a side shift to move the three extra inches.”
“The beauty of telehandlers,” says Wally Verhey at Walters Group in Hamilton, Ont., “is they’re all-terrain, four-wheel drive, very stable and agile. They’re very, very handy.” Verhey’s rental JLG 1055A is standard on every job he works on. One of the biggest challenges running any machine, says Verhey, is the tradeoff between stability and visibility. Some machines have a very low pivot point on the boom which makes the machine very stable. “But then your right side becomes a blind spot…people are getting run over by operators who can’t see behind them or beside them.” We asked some of the OEMs to address these issues. No side shift on Juan Molina’s JCB 536-60? Product manager Stuart Fox at JCB’s plant in Savannah, Ga. points out that side-shifting carriages are optional on all the firm’s telehandlers. When you are 56 ft. up and you’ve missed your mark, “Instead of bringing your boom all the way back to ground level and repositioning the machine, your side shift carriage allows you to make up for that small margin of error.” The hydraulic hose issue is addressed by David Latour, vice-president, National Sales for Manulift in Montreal. The firm JLG 943.
overbuilt
to be overworked. Find your bucket at www.geith.com 2905 Shawnee Industrial Way, Suwanee, GA 30024 T. 800-762-4090 F. 866-472-4950 E. ussales@geith.com Geith and the Geith logo are trademarks of Geith International Limited.
28 / DECEMBER 2015
TELEHANDLERS distributes the Italian Merlo telehandler line. He agrees with Buckley that hydraulic hoses are under a lot of pressure and that this can lead to machine breakdown. He disagrees on the cause, though. “The hose doesn’t leak, it’s the fitting. It’s because you’ve scratched it and damaged it by hitting material.” Skyjack’s product manager Barry Greenaway holds the same point of view. “There are no bad materials – only bad applications,” he says. If things are getting so hot that hoses are degrading, machine design may also be a problem. In addition to low restrictions in the valves and in the fittings, a well-designed machine “will have correctly sized hydraulic tanks for hydraulic flow in the machine. If you have too small a tank and nowhere to vent that heat to, you’ll heat that oil up very fast.” The Gehl RS 1055 has a hydraulic hose tray positioned at the side of the boom rather than through the boom, notes Steve Kiskunas product manager, Telescopic Handlers at Manitou Americas. This allows “for quicker replacement of the hoses if there is a failure,” he explains. “It also avoids damage to the hoses from the moving components inside the boom, the chains, rollers and bushings.”
What about the problem of blind spots? It depends on who you talk to. Anders Mantere, Genie’s telehandler product manager, points out that the more boom sections on a machine, the higher it is able to reach. Problem: that high-pivot boom may
also make it more difficult to see beneath or around you. “Our breaking point came at the 1056 level. With a 1056 and higher pivot point, you can still see around you well. But we started looking at our 12 K and 15 K, and as the boom sections became larger, we
Portable Power
WE DO MORE THAN DESIGN EQUIPMENT.
WE POWER YOUR SUCCESS. At Doosan Portable Power, we’re known for engineering solutions that make customers more productive. Visit www.DoosanPortablePower.com to you and find out o find the dealer nearest nea how we can help you achieve: • Maximum fuel economy • Unparalleled productivity • Region-specific emissions solutions
GENERATORS
DoosanPortablePower.com |
800.727.8457
LIGHT TOWERS
©2014 Doosan Infracore Portable Power
on-sitemag.com / 29
TELEHANDLERS
went to a low-pivot boom so you are effectively looking over the boom.” JLG took steps to improve sight lines on its boom, as well. The dual compensation and lift cylinder on its 642 to 1255 series telehandlers “is a good design from a speed and capacity perspective,” says product director Brian Boeckman. Earlier this year, however, it introduced a single cylinder for the lift, and then relocated the telescopic cylinder to the top of the boom. “This allowed us to get a good-sized package to the boom sections, and improve visibility as well,” says Boeckman. “The ability to look under the boom provides good visibility on the right side for transport and pick-and-place” Also in terms of visibility, Buckley suggests that manufacturers steal a page from Greyhound Bus – install wrap-around mirrors at the front of the cab. A good idea? It just might be, says Fox. But JCB has another solution of its own: put the hydraulic tank at the rear, with a cut-out at the back providing access to the tank, but also greater visibility. “When the operator is looking over his right shoulder, he can actually see through to the rear of the machine, which minimizes the chance of an accident when moving in reverse.” Sometimes the solutions are even more
Gehl RS10-55.
obvious. Skyjack’s newer and narrower chassis “creates a much smaller blind spot,” says Greenaway. “From the operator’s seat, without even looking in the mirrors, you can see the tops of all four tires. That’s not the case on most units out in the field.” Give me a “meat and potatoes” kind of telehandler. That is what Greenaway hears from most of his rental customers and is what Skyjack is mainly focused on giving them – cloth-covered, mechanical suspension seats and air-conditioning only where required (e.g. Ontario in the summer). Otherwise, open cabs are just fine. “It’s also a lot of money to add all that on to the machine,” says Greenaway. Kiskunas cites Manitou’s Gehl RS 1055, a rental “utilitarian” product for more rugged terrain and without “a lot of bells and whistles.” That’s as opposed to its higher performance DL1155 telehandler. Given a choice, North American contractors prefer a simple machine to the more complex, arguably more efficient European models, he says. That might not last long, however. A good example is the telehandler engine, says Kiskunas. “Unfortunately, the days of being able to fix your diesel engine with a screwdriver are over,” says Kiskunas. “Computer controlled engines is where the technology is going. We’re not going to go backwards.” JCB 510-56. 0-55.
Even the most sophisticated technology means nothing, however, if your engine and other components are constantly getting banged around, a problem more common to North American made machines, says Latour. Telehandlers on this side of the ocean “would be a lot better if they “didn’t have a lot of exposed hoses.” On the Merlo telehandler “all the hoses are hidden.” Fox was in Europe recently and he saw something else which hasn’t caught on in North America, yet. “What I can see in the future for North America is the rotating telehandler,” he says. “Rotos” essentially allow you to handle a telehandler at 360 deg. cab movement without moving your wheels, says Fox. “This would minimize the need for a crane on the job site, which typically is more expensive, requires certified operators and a spotter. The Roto telehandler would only require the machine operator.” That operator has to be comfortable too, says Kiskunas. But while air-ride systems are standard on some Manitou telehandlers, he says some owners worry that operators will actually get too comfortable, and “not treat the machine with care and caution.” Instead, North American manufacturers typically focus on getting the operator in and out of the machine easily. “The cabs are going to be more functional than stylish.” he adds. Genie’s North American designers work closely with their Italian counterparts “to leverage the things we learn in a different market,” says Mantere. That could be as simple as selecting a hydraulic valve or as complex as designing an electronic circuit. Ditto the European operation’s tough, steelprotected front and rear lights. But interestingly, not everything about its European design fits the North American market, says Mantere. “We’re actually going to change the lights on some of the machines they’re bringing over from Italy to mimic our U.S. design.” That simple change will affect both the strength and aesthetic appeal of the telehandlers lighting systems, says Mantere. David Godkin is a B.C.-based freelance writer and editor.
30 / DECEMBER 2015
Pickups muscle XXXXXXXX Trucks
show their
Pure horsepower and torque remain the hallmarks of new light-duty pickups while manufacturers remain mindful of fuel economy. BY BILL ROEBUCK
I
t’s another year of constant improvement for many models in the full-size, light-duty pickup truck market. Lighterweight aluminum body parts have been making big news since last year, especially with Ford’s 2015 F-150, in a nod to better fuel economy. Despite the lighter weight of aluminum components versus steel, pickups across the board remain pretty heavy vehicles, which makes it a big challenge to improve efficiency in a category that’s not known for sipping fuel. Ongoing is the muscle-flexing to be at the top the strength game with horsepower, torque, payload, towing capacity and overall performance. Let’s look at what’s new in full-size models from the various light-duty pickup truck manufacturers.
FORD F-SERIES Last year, Ford chose to up its game in the pickup truck market by focusing on vehicle weight. The result was a newly redesigned 2015 F-150 with an aluminum cab and cargo box, providing a vehicle weight that was up to 700 lb. less than the previous design. As a bonus, the high-strength military-grade aluminum alloys Ford used are resistant to dents, dings and corrosion. Those changes got attention: The truck was named the 2015 Canadian Truck of the Year by the Automobile Journalists Association of Canada (AJAC).
32 / DECEMBER 2015
For 2016, the models get a bit of icing on the cake, with new Special Edition Appearance Packages with unique wheels, graphics and finishes available on the XLT and Lariat models. As well, a new Pro Trailer Backup Assist helps make backing up a trailer easier. This technology allows customers to steer a trailer instinctively by turning a knob inside the truck left or right to indicate direction; using cameras, the truck controls the steering and vehicle speed for you. Also now available is a Compressed Natural Gas/Propane gaseous fuel prep package on 5.0-litre V8-equipped F-150s, with the aim of reducing operating costs and tailpipe emissions compared to gasoline-powered models. Ford claims this is the only light-duty pickup capable of running on compressed natural gas or propane. Here are the specs for 2016, which are
the same as the 2015 models. F-150s are available in rear-wheel-drive and four-wheel drive configurations, with a maximum payload of up to 3,300 lb. Four engines are available: a 2.7-litre EcoBoost V6 with 325 hp and 375 lb.-ft of torque; a 3.5-litre EcoBoost V6 with 365 hp and 420 lb.-ft. of torque; a 3.5-litre V6 sporting 282 hp and 253 lb.-ft. of torque; and a 5.0-litre V8 offering 385 hp and 387 lb.-ft of torque. The maximum tow rating is 12,200-lb., and fuel economy is as low as 9.2 L/100 km highway. Ford also offers its range of Super Duty F-250, F-350 and F-450 models. They are available in 15 different versions. The lineup boasts a maximum towing capacity of 31,200 lb. Changes made for 2016 models are minor and include an optional four-corner LED warning strobe light kit.
Trucks
RAM TRUCK The 2016 Ram 1500 EcoDiesel has been named the overall winner of the Canadian Truck King Challenge. It won both the Full-Size Truck category and the overall Canadian Truck King title. Light-duty pickups last faced off in the 2014 edition of this event, where the Ram 1500 EcoDiesel also won. In the 2016 Canadian Truck King Challenge, the Ram competed against the revised 2016 Chevrolet Silverado and the 2016 Ford F-150. 2016 brings two new models to the Ram line-up, including a new top-of-class Ram 1500 Laramie Limited model and an all-new Rebel with a special off-road design. Both have a new front grille design. The Rebel includes standard air suspension for increased ride height,
33-in. tires, skid plates and tow hooks. Although the exterior design is unchanged from 2015 models, all 2016 Ram 1500s have a new centre console layout and optional bed lighting. Configurations include Regular Cab, Quad Cab and Crew Cab, three box lengths, and 2WD or 4WD versions. A wide array of combinations is available – in fact, the Canadian spec document describing them all runs to 25 pages! The Ram’s focus is on fuel economy this year, with its 3.0-litre EcoDiesel V6 engine delivering 240 hp and 420 lb.-ft. of torque and fuel economy as good as 8.0 L/100 km highway. This engine is mated to an eight-speed automatic transmission. Towing capability of this powertrain combo is up to 9,200 lb.
Other available engines include a 3.6-litre Pentastar V6 that offers 305 hp, 269 lb.-ft. of torque and fuel economy as efficient as 9.3 L/100 km; and a 5.7-litre Hemi V8, producing 395 hp and 410 lb.-ft. of torque, and using fuel-saving cylinder shut-off to provide fuel economy as efficient as 10.9 L/100 km. The eight-speed automatic transmission is available with all powertrains. A six-speed is standard with certain models. Ram also offers a full line of heavy-duty versions of its pickups, where the maximum towing rating reaches 31,210 lb. New for 2016 are a rear camera display that can be switched between the radio and the rear-view mirror, optional pickup box lighting, and the Park-Sense Front/Rear Park Assist system to help drivers manoeuvre the trucks.
WITH YOU ALL THE WAY Partner with Topcon for precision machine control solutions and remote job site visualization tools. For any challenge, Topcon is with you all the way.
CONSTRUCTION SOLUTIONS
topconpositioning.com
on-sitemag.com / 33
Trucks
NISSAN TITAN Nissan is taking the light-duty pickup game more seriously, with its all-new 2016 Titan with a Cummins turbodiesel engine. The model is expected to be available in Canadian dealerships in early 2016. It’s noteworthy that Nissan says the new Titan is really neither a light-duty nor heavyduty pickup, providing more power than a half-ton, but without the costs and overall capabilities of a three-quarter ton rig – lying
somewhere in between those two in an as-yet undefined mid-duty category. A newly designed Titan has been anticipated for quite some time. The current design has been around since 2004, and the long-planned launch of a replacement has been delayed for a wide variety of reasons (one being the earthquake and tsunami in Japan in 2011). For the current 2015 models, the Titan full-size half-ton pickup remains available in
Still Using Paper Time Cards in 2015? Cut foremen entry time in half with HeavyJob Mobile Apps and... § Reduce payroll processing by as
§ Train foremen quickly with
§ Know if jobs are profitable with
§ Integrate with over 35 accounting
§ Work offline for remote jobs with no
§ Low risk—Software comes with a
much as 90%
same-day feedback against budget
internet
easy-to-use time card
systems
12-month money back guarantee!
Call us at
800-683-3196 Learn More
34 / DECEMBER 2015
at www.HCSS.com
King Cab and Crew Cab body styles in a 4x4 configuration, along with two wheelbases and three bed lengths. Unique features are Wide-Open rear doors in the King Cab that open nearly 180 deg. for unobstructed rear cab access, and an integrated, lockable bedside storage compartment. The 2015 model continues with an allaluminum 5.6-litre V8 engine, mated to a five-speed automatic that offers 317 hp and 385 lb.-ft. of torque. Towing capacity ranges up to 9,500 lb. and payload is up to one ton. Fuel economy is rated at 14.3 L/100 km highway. The Cummins-powered 2016 Titan XD has already been shown at the Detroit and Toronto auto shows. The XD gets a Cummins 5.0-litre V8 turbodiesel engine producing 310 hp and 555 lb.-ft. of torque. With heavy-duty-like capabilities such as an available towing capacity of more than 12,000 lb. and a maximum payload capacity of 2,000 lb., Nissan says the XD also will have the fuel-efficiency and affordability of a half-ton pickup. The engine is mated to a heavy-duty six-speed automatic. The company says every component has been bolstered and strengthened for added stiffness, vertical and lateral bending, as well as torsional rigidity. A high-strength steel, fully boxed, full-length ladder frame handles all this. A gooseneck hitch – built into the frame – sits in bed of the truck, yet the ball is removable when all you need is a flat bed. The 2016 Titan will be available in three cab configurations, three bed lengths, two frame sizes, three powertrain offerings (including 4x2 and 4x4) and five grade levels. It eventually also will be offered with V8 and V6 gasoline engines.
Trucks
TOYOTA TUNDRA The Toyota Tundra full-size pickup was refreshed for 2014 and the 2016 lineup is basically a carry-over. It’s available in 10 models in four grades and a total of 25 configurations. New this year, all Tundra models with the 5.7L i-Force V8 engine get a standard tow package. It includes an added trailer brake controller and 144-litre fuel tank – said to be the largest in its class. The tow package also includes a heavy-duty tow hitch receiver, 4+7 pin connectors, supplemental transmission cooler and a transmission fluid temperature gauge. Engine options include a 4.6-litre V8 producing 310 hp and 327 lb.-ft. of torque, and a 5.7-litre V8 with 381 hp and
401 lb.-ft. of torque, both mated to a sixspeed transmission. Towing capacity ranges up to 10,800 lb. and maximum payload is 1,895 lb. Choices include 4x2 or 4x4 models. Fuel economy is rated as low as 13.0 L/100 km highway.
Safety features include a standard backup camera on all grades, and an optional Blind Spot Monitor with Rear Cross Traffic Alert. There is no heavy-duty model of the Tundra.
on-sitemag.com / 35
ROLLING OUT WHAT’S NEW
March 22-24, 2016 • Nashville, TN, USA • Music City Center New products that will improve efficiencies from 300+ exhibitors The industry’s hottest education such as “People, Plants and Paving” Networking with 6,000+ attendees to increase your go-to contacts
Co-located with
Pre-register now and save: www.worldofasphalt.com
GENERAL MOTORS GM continues to offer a pair of nearly identical full-size pickups, the GMC Sierra and the Chevrolet Silverado, and it has brought out a newly refreshed design for the Sierra 1500 and Silverado 1500 for 2016. But wait – didn’t we just see a redesign of this model two years ago? Yes, and those 2014 models gave customers the choice of three new EcoTec3 engines, more safety options and a restyled passenger cabin. This year’s update includes a new, bolder front-end design and a sculpted hood to provide the truck with a wider, more substantial look. The 2016 trucks now offer a variety of optional grille and body-coloured bumper options. Other features of the new trucks include expanded availability of the existing eight-speed automatic transmission, a new MyLink2 display featuring Apple CarPlay3 and optional safety technologies such as Lane Keep Assist, High Beam Assist and Low Speed Collision Mitigation Braking. Engine choices include a 4.3-litre V6 with 285 hp and 305 lb.-ft. of torque, a 5.3-litre V8 with 355 hp and 383 lb.-ft. of torque, and a 6.2-litre V8 producing 420 hp and 460 lb.-ft. of torque. Maximum trailering capacity is 12,000 lb. Payload capacity can be as high as 1,980 lb. Models include a crew cab, regular cab model and double cab, in seven trim levels, in 4x2 or 4x4 configurations. Work Truck models feature black bumpers, door handles and outside mirrors, and a 40/20/40-split vinyl bench seat; a high-wear seat cloth is available on all trim levels. A handy feature is the step-in assist depressions in the corners of the rear bumper to make it easier to climb into the bed, no matter if the tailgate is up or down. Also, the engines use cylinder deactivation to boost fuel economy, which rates as low as 9.9 L/100 km highway.aa High-strength steel is used in the frames for strength with less weight. Aluminum alloys also have been used to reduce the weight of engines, front suspension components, hoods and other parts. The 2014 GMC Sierra 1500 was named the Best New Pickup by the Automotive Journalists Association of Canada (AJAC) and the Chevy Silverado was named
XXXXXXXX Trucks
the 2014 North American Truck of the Year. The Silverado HD and Sierra HD 2500 and 3500 heavy-duty models carry over from 2015. The 3500HD can tow up to 23,200 lb. Even in these short descriptions, there are a lot of numbers to contend with. When you’re ready to buy, you’ll need to talk to the
truck experts at local dealerships to spec out a model that fits your specific needs. Bill Roebuck is a voting member of the Automobile Journalists Association of Canada (AJAC), which produces the annual Canadian Car of the Year and Utility Vehicle of the Year awards.
on-sitemag.com / 37
CHECK US OUT AT BOOTH C4852
START IT UP.
YOU CAN ALMOST HEAR YOUR BUSINESS PURR. You want an engine that has a reputation for doing everything right so your product can do what it’s designed to do. In other words, you want a Kubota. THE ENGINE OF SUCCESS
Learn more at KubotaEngine.com/Success
DECEMBER 2015
Get ready for
WORLD OF CONCRETE
2016!
Massive show covers all things concrete
IN THIS ISSUE: 40 Concrete industry marketing a priority | 42 Wood vs. concrete in six-storey showdown
CONCRETE INDUSTRY AND THE FUTURE
O
ne of the strengths of any industry is its ability to protect existing markets and continually to look for new ones. The ready-mixed concrete industry is no different when it comes to developing new technologies. Marketing these technologies and protecting existing markets can be a challenge. The particular case this column will outline is the recent market surge the wood industry has made in marketing six-storey (and higher) wood-frame structures. The wood industry has long been subsidized by all levels of government as an exporter and a job creator for Canada, specifically in the buildings sector. The wood lobby has been successful in changing several building codes in Canada to recognize six-storey wood frame, in some cases based on economics and the due diligence required by codes. The wood industry continues to push the height envelope, with Quebec allowing wood frame construction up to 12 storeys and the recent announcement of an 18-storey building at the University of British Columbia. The homebuilding industry has come out in support of these structures as a cost-effective measure to provide higher densities in large urban areas. Claims are made that they provide a lower-cost option for these types of construction. The wood industry still requires a concrete platform for these buildings or concrete fire separations between underground parking garages and the building. The reality is that the savings have not been realized in the field and that, in the case of the higher storey buildings, the wood industry is subsidizing the construction. The concrete industry has been slow to react, with most efforts involving trying to stop the acceptance of changes to the building codes. However, the real issue is the market knowledge and actual cost and buildability of six-storey wood frame buildings. The concrete industry is starting to identify the fact that this is where it needs to focus its efforts. The main focus of these efforts will be on the actual costs and technical challenges of the construction process. A clear picture will need to be made to the industry clients, so they can make informed decisions on which materials to select. One of these initiatives is being led by the Concrete Council of Canada, a group that represents all members of the concrete industry. It is involved in an insurance industry study that will delve into the incremental costs of insurance for constructing and maintaining a six-storey wood frame building. The wood industry has been vague on these numbers and the concrete industry needs to produce data to outline the reality of the products and systems being proposed. The need to address the marketing claims of the wood industry
40 / DECEMBER 2015
and protect the existing concrete markets has mobilized the National Ready Mixed Concrete Association (NRMCA) in the U.S. Background material suggested they have the potential to lose 70 per cent in materials on a six storey wood frame building. As a result of this threat, they have announced a five-year, $20 million marketing strategy to protect, maintain and increase their market share. They approved and announced the strategy in September at their annual meetings. The Concrete Council of Canada will be watching developments and will assist within their abilities. Another group, the Council of ICF Industries (CICFI) has been active in the development of the NRMCA program, since the ICF system will be one of the key systems being promoted in the marketing for this program. There are many elements of the NRMCA plan, but here is a summary of the three key strategic approaches: 1) COMMUNICATIONS • Conduct market research to determine baselines for share of concrete for low/mid-rise construction; then measure annually. • Conduct interviews/focus groups with decision-makers to develop key messages, baseline attitudes and perceptions; and then measure periodically. • Develop and implement comprehensive marketing plans for selected target audiences. • Advertise in key media outlets. • Exhibit at appropriate trade shows. • Micro websites. • Utilize appropriate social media. • Build alliances with third-party validators such as insurance industry, fire chiefs, renters associations, and so on. 2) DIRECT PROJECT PROMOTION • Convert buildings from wood and steel to concrete • Increase the knowledge of economical concrete building systems with architects, engineers and developers • Increase the knowledge of the benefits of concrete building systems with architects, engineers and developers 3) ADVOCACY • Promote concrete as part of resilience standards, urban heat island reduction and storm water management • Develop a voluntary resilient design standard and/or certification for buildings. • Work with a national code development body to develop a new resilience standard for buildings that could be adopted by national model codes, state and local jurisdictions. • Improve cost and efficiency of NRMCA green building certifications. • Achieve ANSI certification for NRMCA green building certification programs. The CRMCA will keep a close watch on these any other activities on the Canadian side that will expand the competitor’s market and potentially decrease the concrete industry market. The environmental consequences of cutting down of forests seem to have become an afterthought, with the push for larger wood buildings. Provided by the Canadian Ready-Mixed Concrete Association. Send comments to editor@on-sitemag.com.
QUIKRETE® is Canada’s top choice for building the strongest projects and bringing old ones back to life. With 6 manufacturing plants and over 200 professional-grade products, QUIKRETE has what you need for your next residential or commercial concrete construction job, no matter the size. QUIKRETE, What Canada’s Made Of. To place your order today, call 1-800-575-7700.
MATERIALS
MARKETS AND THEIR MATERIAL OPPORTUNITIES Six-storey buildings:concrete or wood? BY ROSS MONSOUR
W
ith the allowance of six-storey wood frame buildings, building codes in several provinces in Canada have implemented a significant change in the way buildings are being constructed. Traditional buildings are being challenged by what is perceived as a more costeffective and speedier construction method. Building out of wood has been a mainstay of the residential construction industry for centuries and came into the mainstream after World War II. The transition to sixstorey wood frame may seem relatively simple, but you need to be aware of the requirements that will enable the project to meet the demands of today’s environment. This article will discuss the system elements you need to consider when deciding to construct a six-storey building – whether it be in wood or concrete using insulated concrete forms (ICFs). The contractor will ultimately make the decision on which direction to go, but providing the right technical information to the marketplace will contribute to the long-term success of the building. The elements that need to be discussed are: structural details; air tightness; thermal and energy performance requirements; water and vapour control; window detailing; construction and moisture management; fire performance; exterior attachments and costs and construction management.
STRUCTURAL Wood design is starting to encompass crooss-laminated timber as one of the main structural components for six-storey
42 / DECEMBER 2015
buildings, so the construction industry must become more familiar with the structural design of these products. Generally speaking, wood and ICF structural design are straightforward. Wood construction follows CSA Standard O86-09, Engineering Design in Wood. The Canadian Wood Council has published a supporting document, Wood Design Manual. Similarly, ICFs are designed to CSA A23. 3-14, Designing Concrete Structures in Canada and ACI 318 -14, Building Code Requirements for Structural Concrete. New seismic design requirements are having a dramatic effect on both building systems, depending on the location. Concrete is still needed for the early sixstorey wood frame buildings. A concrete platform has been used as the base for the rest of the structure. The other constructability challenge is the air barrier. With an ICF, a large part of the air barrier is being constructed as you cast the wall. In a wood frame building, you have to construct them separately.
AIR BARRIER A key component of today’s energy-efficient buildings is ensuring that the wall system is a barrier to air movement. Proper detailing is needed to complete continuity and achieve the desired performance. ICFs provide a simple structure for an overall air barrier. The challenge for this system is the detailing around penetrations such as roof junctures, doors, windows and utilities. The wood frame system requires the same level of detailing at these penetrations. However, due to the nature of this type of panel assembly, there
Building costs... the devil is in the details.
are additional paths for air to move around which need to be sealed to ensure air barrier continuity across the complete wall system.
THERMAL PERFORMANCE The increasing push to provide more thermal resistance to buildings is driving two elements in their construction. One push is simply to increase the R value and the other is to recognize thermal bridging as a contribution to the performance of the building. In the case of wood frame buildings, codes previously provided them with an intentional advantage by asking only for nominal R-values. Canadian codes are now using total effective R-value, which requires additional insulation to be added to meet the new requirements for systems that must take thermal bridging (for instance in wood frame systems) into account. ICF systems are able to adapt their product to the increase by developing products that have thicker forms – some equally on both sides, and others with an increase on one side. Other ICF technologies include a higher R-value expanded polystyrene bead. This increases costs for both building systems but creates a level playing field for enforcement purposes. Contiuned on pg 45
SPECTRUM速 CONSTRUCTION SOFTWARE by Dexter + Chaney
Visit us at World of Concrete, booth C4103. 800.875.1400
info@dexterchaney.com
www.dexterchaney.com/today
PERFORM AT A HIGHER LEVEL
PRO-TECH Certified Pre-owned Equipment
Designed to accommodate your specific budget, the Putzmeister Pro-Tech Certified Pre-owned Equipment program gives you the ability to diversify or enhance your fleet with affordable equipment. Available for boom pumps and Telebelts ®, the Pro-Tech program offers a multi-tiered service menu, with products ranging from “as-is” units to completely refurbished models that have been remanufactured to meet our original high standards. Many Pro-Tech Certified pre-owned models come with a new warranty, a reflection of Putzmeister’s commitment to quality concrete solutions and support for the pre-owned market. At Putzmeister, exceeding your expectations isn’t a goal – it’s mandatory. Visit pmaprotech.com to locate the equipment you need to perform at a higher level.
866.884.8801 | PMAProTech.com
MATERIALS no water gets beyond the outside surface. Recent testing of ICF window details demonstrate sufficient resistance to water penetration at the high wind pressures that could be experienced in coastal regions.
FIRE PERFORMANCE Both systems require fire-suppression design for the occupants, but a bigger concern has been a recent series of construction fires in highly developed urban areas. The move to a six-storey wood frame building has added requirements for protecting the sites during construction. This is further complicated when additional combustible external insulation is added – pushing some fire authorities to require non-combustible protection of these surfaces during construction. This requirement impacts the ICF EPS surface as it is classified as combustible. ICFs stored on site must be protected from any fire safety concerns.
ECONOMIC CONSIDERATIONS The challenge for both of these systems from the increased thicknesses is the required redesign of exterior fastening. The ICF has a web for the fastener to be attached into, but the added thickness and shear forces acting on it must still be taken into account. Wood frame must work with longer penetrations back to a structural surface for attachment, depending on the insulation configuration — i.e., more exterior insulation versus an increase to interior insulation. The additional thermal performance to be considered is the thermal mass of the wall system. Wood frame has minimal thermal mass, whereas concrete has a distinct advantage with its higher density mass. Although this effect is hard to model, thermal performance including controlling of heating and cooling peaks has been seen anecdotally.
WATER AND VAPOUR CONTROL Both systems require water penetration and vapour control which is achieved by membranes or sheathing papers. In the case of ICF, no secondary plane of protection is required due to the inert properties of the concrete. Depending on the configuration of the wood
frame system, a drainage layer may be necessary unless it is incorporated into an additional insulation that is required.
CONSTRUCTION AND MOISTURE MANAGEMENT This is an area that is the biggest challenge for a wood frame system. The building season in Canada varies and provides unique weather conditions for construction. Moisture protection during construction is important, as too much absorption into the structure results in potential shrinkage after the fact. At six storeys in height, this can become a significant shrinkage issue per floor. Depending on the moisture exposure, shrinkage in a wood frame building can be as much as one inch per floor. The wood industry has provided guidance on how to flash and allow for this shrinkage without compromising the air-barrier detailing. ICF’s do not have these shrinkage issues and their concrete mix designs allow for almost complete hydration, removing the concern of excess water. Detailing around windows and penetrations must be addressed due to the thickness of the walls to ensure
While some believe that six-storey wood frame buildings are more affordable, until sufficient numbers have been constructed and equivalent comparisons have been made the financial implications are not clear. Insurance costs are under discussion to determine whether there is an impact in insuring six-storey wood frame structures versus standard construction. Speed of construction with ICFs has been demonstrated in multiple student residence builds, as the developer must be finished by the beginning of the school year to allow move-in. There are many factors that need to be considered in assessing the economic advantages for this type of construction. This has been a brief representation of the challenges of constructing six storey buildings. As the new technologies allowed by the codes see more presence in the market, the industry will be in a better position to assess which building system best suits them and their client’s needs. This article was contributed by the Canadian Ready-Mixed Concrete Association. Send comments to editor@on-sitemag.com
on-sitemag.com / 45
WOC 2016
Get ready for World of Concrete 2016! Massive show covers all things concrete
If your livelihood depends on concrete technology, Las Vegas is the place to be in February. Since 1975, World of Concrete has been the primary annual international event dedicated to concrete and masonry construction professionals. To be held January 31 to February 5 at the Las Vegas Convention Center, the event will spotlight innovative products, construction machinery, safety training courses and new technologies designed to help you grow your business. Join some 50,000 industry professionals, 1,300 exhibitors and well over 90 speakers from around the world at this landmark event. WOC will once again feature special product and action areas. These include: • The Producer Center: a marketplace for materials, equipment, demos and seminars for concrete producers.
February 2-5; Seminars: 1-5. 2016 Las Vegas Convention Center, Las Vegas, Nevada www.worldofconcrete.com
•M aterial Handling: here you’ll see trucks, excavators and more for material delivery, distribution, concrete placement and earth moving. • Concrete Repair & Demolition: featuring a display of surfacepreparation equipment, scarifying, grinding, sawing equipment and other products. • World of Masonry: Products, tools, information and technology for masonry professionals are the focus of this area. • Technology for Construction: Features the newest products and tools for the commercial construction industry from leading information technology and systems providers. • Concrete Surfaces & Decorative: Showcases decorative concrete for both commercial and residential applications. • Precast: The all-new precast area focuses on precast products, technologies and equipment including coring machines, pipe unloaders, precast forms, above/below ground precast, concrete pipe, manhole and septic tank equipment and more.
GRAND CONCOURSE SOUTH HALL, LEVEL 1
• Luckys Restaurant
• Badge Pickup (Mon-Fri)
MAIN & UPPER LEVEL MEETING ROOMS
Hoover Dam Door 9 Pick-Up
• Badged Entrance Only
WORLD OF MASONRY PRECAST
ir &
Dem
olitio
• Meeting Rooms S219-S233 • Exhibitor Meeting Rooms • Luncheons & Forums
Repa C
ete oncr
TFC
SOUTH HALL MEETING ROOMS, LEVEL 2
n
ecora
World of Concrete
• Walkway Between Westgate & North Hall
s&D
World of Concrete
rface
Escalator
te Su
• Aisles N100-N3200 • The Producer Center • World of Masonry • Precast
• Walkway Between Central and South Halls
re Conc
NORTH HALL
• Aisles C3000-C7600 • Material Handling
tive
• 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
• Aisles S10100-13300 • Concrete Repair and Demolition • Concrete Surfaces & Decorative
CENTRAL HALL
Registration
• 2017 Rebook Office • International Business Center
LOBBY Drop Off & Pick Up
Escalator
Badge Pickup (Mon-Fri)
Drop Off ONLY
• Aces Restaurant Westagte Hotel & Casino
THE PRODUCER CENTER
Monorail Station
• Skywalk between Gold Lot and North Hall
GOLD LOT
• Competitions & Challenges • Parking • WOC Certification/Training Area
46 / DECEMBER 2015
CONCRETE SURFACES & DECORATIVE PAVILION • Aisles O40000-O41000
OUTDOOR EXHIBITS & DEMONSTRATIONS • Aisles O29900 - O32300
NORTH MEETING ROOMS UPPER LEVEL • World of Concrete Seminars • Meeting Rooms N252-N264 • CIM Auction, N262
Renaissance Hotel
See the New GOMACO G+® Controls at World of Concrete
Visit with the GOMACO 3D Team at World of Concrete about your 3D paving needs.
Stop
by o
h to crete boot d o f C on l r o W ur
rb and gutter, barrier, sidewalk, slipform paving and more... all see the latest in cu featuring th e exclusi ve G+ contro See the latest GOMACO technology! l s ys Central Hall -- C5146
te m !
Once you experience G+ controls, you won’t be satisfied with anything else. It’s a control system that is both easy to learn and easy to operate. G+ expresses itself in easy to understand international icons and full script explanations. It operates in all the major languages of the world in either imperial or metric units. It has a lightning-fast processing speed and features two-way communications between paver accessories and G+. Its instant digital feedback combined with the tight closed-loop electronic and hydraulic control creates a G+ paving experience that is smooth, efficient, and accurate. Isn’t it about time you had the world’s most revolutionary control system onboard? Visit the GOMACO booth at World of Concrete to experience first hand the power of G+ controls.
CONCRETE STREETS AND HIGHWAYS ❘ AIRPORT RUNWAYS ❘ CURB AND GUTTER ❘ SIDEWALKS RECREATIONAL TRAILS ❘ SAFETY BARRIER ❘ BRIDGE PARAPET ❘ BRIDGE DECKS ❘ IRRIGATION CANALS GOMACO CORPORATION IN IDA GROVE, IOWA, USA ❘ 800-831-2320
info@gomaco.com ❘ www.gomaco.com
48 / DECEMBER 2015
to WOC Exhibitors contributing equipment and materials used for hands-on training.
SPECIAL APPRECIATION
MANAGEMENT
& PROJECT
BUSINESS
CONCRETE
DECORATIVE
FLOORS & SLABS
CONCRETE
REPAIR
CONCRETE
PRODUCTION
CONCRETE
FUNDAMENTALS
CONCRETE
3-Hour Tracks
TH23 Understanding, Selecting, and Troubleshooting Sealers & Coatings for Decorative Concrete Chris Sullivan TH29 Win More Contracts & Find New Customers! Strategies to Overcome the Low Bid Process George Hedley TH30 NO YELLING!: 9 Secrets of Leadership You Must Know to Win Business Wally Adamchik
WE22 Acid Staining: Advanced Techniques for Flawless Horizontal & Vertical Application Federico Jasso WE27 Managing & Motivating Your People by Personality Jeff Stokes WE28 How to Build & Grow a Construction Company that Always Makes a Profit George Hedley
TU25 25 Down-and-Dirty Ways to Increase Profits Leslie Shiner TU26 NEW! LEAN in Action: Tools to Enhance Scheduling on Construction Projects John Scheuer, Sam Moses, Chris Everist
MO401 ACI/CRSI Adhesive Anchor Installer Monday, 8:00 am - 12:00 pm Werner Hellmer
Individual seminar certificates reflecting continuing education hours available online 7-8 weeks post-show.
CERTIFICATE OF COMPLETION
• TUAAP Adhesive Anchor 1-Hr Perf Exam Tuesday, 10:00 am - 2:00 pm
• TUAAW Adhesive Anchor Written Exam Tuesday, 8:00 am - 9:30 am
WEDNESDAY February 3
• Tanya Komas, Scott Burghardt WECS1-2 Wednesday, 2:00 pm - 5:30 pm
NEW! Sustaining Concrete Lab TUCS1-2 Tuesday, 2:00 pm - 5:30 pm
• TUFPE Comm/Ind Performance Exam Tuesday, 7:00 am - 1:00 pm • TUCIF Comm/Ind Written Exam Tuesday, 3:30 pm - 5:30 pm
MO402 ACI Specialty Comm/Indus Concrete Flatwork Monday, 1:00 pm - 5:00 pm Jerry Holland, Bob Simonelli
TUESDAY February 2
• WEFTW Field Testing Written Exam Wednesday, 3:30 pm - 5:30 pm • THFTP 2-Hr Field Testing Perf Exam Thursday, 9:00 am - 1:00 pm
TU404 ACI Concrete Field Testing Technician - Grade I Tuesday, 1:00 pm - 5:00 pm Mitch Englestead
• TUCPE Written Exam Tuesday, 1:00 pm - 3:00 pm
TU403 ACPA Concrete Pump Operator Safety Tuesday, 8:00 am - 12:00 pm Les Ainsworth
WEDNESDAY February 3
ACI/CFA Residential Foundation Certification • WECFA Written Exam Wednesday, 3:30 pm - 5:30 pm
• THCFF Flatwork Written Exam Thursday, 1:00 pm - 3:00 pm
WE406 ACI Concrete Flatwork Finisher/Technician Wednesday, 8:00 am - 12:00 pm Jerry Holland, Bob Simonelli
**Attendees MUST be pre-approved for ICRI Exams
• THRPE Moisture Testing 1-Hr Perf Exam Thursday, 12:00 pm - 5:00 pm
• WECRT Moisture Testing Written Exam • WECRE Recertification Written Exam Wednesday, 2:00 pm - 3:00 pm
WE405 ICRI Slab Moisture Testing Technician Wednesday, 8:00 am - 12:00 pm Peter Craig, Scott Tarr
Also, see Association & Industry Training – pg 3.
Opportunities for craftsmen, technicians, supervisors and inspectors to receive internationally recognized credentials.
for the construction professional
under IMPORTANT LINKS
"Certifications & Exams"
- click Education tab and select
See detailed descriptions at www.worldofconcrete.com
FR31 NEW! Winning from the Beginning—Develop a Bestin-Class Estimating Function Mike Clancy
FR14 Advanced Concrete Repair for Contractors & Engineers—Structural Distress, Assessment & Solutions Jay Thomas
FR09 Effective Use of Chemical Admixtures in Concrete Construction Charles Nmai
FR05 NEW! KISS Your Concrete Troubles Goodbye Scott Tarr, Ron Kozikowski
8:00 AM—11:00 AM
FRIDAY February 5
INDUSTRY CERTIFICATIONS
• THTUS Tilt-Up Written Exam Thursday, 4:00 pm - 6:00 pm
THURSDAY February 4
THCS1-2 Thursday, 2:00 pm - 5:30 pm
• Terry Holland, John Schemmel WECF1-2 Wednesday, 12:00 pm - 5:45 pm
TH407 TCA Tilt-Up Technician/Supervisor Thursday, 12:00 pm - 4:00 pm Shawn Hickey
THCF1-2 Thursday, 12:00 pm - 5:45 pm
WEPTD1 Wednesday, 1:00 pm - 5:00 pm
NEW! Concrete Fundamentals Lab TUCF1-2 Tuesday, 12:00 pm - 5:45 pm
THSC1 Thursday, 8:00 am - 12:00 pm THPTD1 Thursday, 8:00 am - 12:00 pm THPTD2 Thursday, 1:00 pm - 5:00 pm
WESC1 Wednesday, 8:00 am - 12:00 pm
• Dustin Crowther, Travis Houston WESTS1 Wednesday, 8:00 am - 12:00 pm - Advanced Surveying
Place & Finish Floors • Jeff Groom
Stamped Concrete • Paul Schneider TUSC1 Tuesday, 1:00 pm - 5:00 pm
TUSTS1 Tuesday, 8:00 am - 12:00 pm - Basics of Surveying for Beginners
TUESDAY February 2 Surveying with Total Stations
WOC HANDS-ON TRAINING
WOC 4-HOUR CERTIFICATION SEMINARS & EXAMS
MONDAY February 1
MO24 Increasing Jobsite Productivity— A Fifteen-Point Program Jim Adrian, Kristy Wolfe
TU21 NEW! MO20 MO19 NEW! The Stamped Concrete Process: Best Practices Step-by-Step Instructions for Producing High- Principles of Polished Concrete & Overlayments: Densifiers, Equipment, Tooling & Applying Color Quality Precast Concrete Countertops & Issue Prevention Peter Wagner, Chris Sullivan Jeff Girard Todd Scharich
THURSDAY February 4
TH18 NEW! Unique Slab Design & Construction: Superflat + High Volume Fiber Floors & Pavements Jerry Holland, Bryan Birdwell
WE17 Combining Engineering & Laboratory Methods to Troubleshoot Problems with Slabs Kim Basham, David Rothstein
TU16 Concrete Shrinkage—Solutions to a Growing Problem Scott Tarr
WE12 Concrete Repair Fundamentals II: Waterproofing & Corrosion Protection Peter Emmons, Jorge Costa
TU11 Concrete Repair Fundamentals I: Surface Preparation, Reinforcement Repair, Material Selection & Placement Peter Emmons, James McDonald
MO10 Troubleshooting Concrete Cracks: Understand and Minimize Cracking Kim Basham MO15 Polishing Retail & Industrial Slabs—Design & Construction Best Practices Rick Smith
TH13 Repairing Concrete Cracks: Evaluation and Selection of Repair Methods Kim Basham
WE08 Concrete Mix Design II: Adjusting with Aggregates and Admixtures Ken Hover
TH04 NEW! Symptoms, Causes and Prevention of Concrete Distress Terry Holland
8:00 AM—11:00 AM
THURSDAY February 4
TU07 Concrete Mix Design I: Evaluation of Mixtures Ken Hover
8:00 AM—11:00 AM
WEDNESDAY February 3
MO06 NEW! Concrete Quality Control as a Profit Center Jay Shilstone
8:00 AM—11:00 AM
TUESDAY February 2
TU03 Concrete Basics III: Curing, Effects of Weather & Hardened Concrete Properties Jeff Groom, Terry Holland
1:00 PM—4:00 PM
WOC 3-HOUR SEMINARS
MO02 MO01 Concrete Basics I: Concrete Mixtures, Materials Concrete Basics II: Ordering, Making, Placing & Finishing Concrete & Fresh Properties Jeff Groom, Terry Holland Jeff Groom, Terry Holland
8:00 AM—11:00 AM
MONDAY February 1
WORLD OF CONCRETE 2016 EDUCATION PROGRAM Program-at-a-Glance (current as of 10/23/2015)
MAPEI SUPPLIES
STRUCTURAL ST R E N G T H
TO PHASE II REPAIRS
OF CHAMPLAIN
BRIDGE MAPEI products used on project:
MapeWrap ™ Primer 1 MapeWrap 21 MapeWrap 11 MapeWrap 12 MapeWrap C Uni-Ax 300 MapeWrap C Uni-Ax 1200 As contractors move to Phase II repairs on Montreal’s Champlain Bridge, they continue to use MAPEI’s carbon-fiberreinforced-polymer (CFRP) products for structural strengthening. In this part of the project, more than 30 edge girders were reinforced with MapeWrap C Uni-Ax 1200 and MapeWrap C Uni-Ax 300 uni-directional carbon fiber fabrics. MapeWrap Primer 1 was used as a seal coat for consolidating and priming the concrete substrates. MapeWrap 11 and MapeWrap 12 were used for leveling uneven concrete surfaces before application of the MapeWrap fabrics. Using the wet layup method, the fabrics were saturated with MapeWrap 21 low-viscosity, 100%-solids epoxy resin. COME VISIT US AT BUILDEX VANCOUVER FEBRUARY 24 – 25, 2016
Vancouver Convention Centre - West Vancouver, British Columbia, Canada BOOTHS #1131 and #230
Keyword: MAPEI Americas
COME VISIT US AT WORLD OF CONCRETE F E B R U A R Y 2 – 5 , 2 0 16
Las Vegas Convention Centre L a s Vega s, N V, US A MAPEI BOOTH #S10927 • MAPEI /GRT BOOTH #N1537
WOC PRODUCT SHOWCASE
SWELLING WATERSTOP
SMALL-BODY LIGHT TOWERS Doosan Portable Power has introduced two small-body model light towers, the LSV6 and LSV8. They offer many of the features and the reliable performance of midsized light towers, but in a compact design with a vertical mast that allow for greater maneuverability, quick setup, ease of transport and low operating cost. The vertical mast manually extends to 25 ft., 6 in. with four 1,000-W metal-halide lamps. A hydraulically actuated tower is optional. The units are 99.1 in. long and 49 in. wide with a travel position height of 99 in. The LSV6 is powered by a Tier 4 Final–compliant Kubota D1005BG diesel engine with a Mecc Alte six-kW alternator. The LSV8 is equipped with a Tier 4 Final Kubota D1105 engine and Mecc Alte eightkW alternator. The receptacle power function enable operators to simultaneously power tools or heaters while providing illumination. Options include drip containment, combination hitch, electric fuel pump and lockable battery disconnect. A block heater, block/battery heaters and a 1,000 CCA battery are also available. Visit Doosan Portable Power at Booth O31628. www.doosanportablepower.com.
50 / DECEMBER 2015
A high-performance joint-waterproofing system will be exhibited at the Kryton booth. Through its synthetic rubber technology, Krytonite Swelling Waterstop swells up to four times more than ordinary rubber or bentonite swelling waterstops and produces enough swelling pressure to withstand extreme hydrostatic pressure – even when exposed to salt water or used in chloride or sulfate contaminated soils. Visit Kryton at Booth S11015. www.kryton.com
SOPHISTICATED GENERATORS Subaru Industrial Power Products will exhibit the commercial-grade SGX5000 and SGX7500E generators at the show. They feature a large fuel tank, no-flat tires and large mufflers. Subaru EX Series overhead cam engines are standard. Features include 100-per cent copper windings, varnishdipped stators, an upgraded control panel and large, low-tone mufflers with U.S. Forest Service-approved spark arrestors. All SGX models incorporate an auto-
matic voltage regulator system and a lowoil-level sensor. The SGX3500 delivers a maximum output of 3,500 W powered by the EX21 seven-h.p engine with a four-gal. fuel tank; A 9.5-hp EX30 engine with an eight-gal. fuel tank powers the SGX5000, offering maximum output of 4,900 W; and the SGX7500E has a 14-hp EX40 engine with an eight-gal. fuel tank and provides a maximum output of 7,500 W, and also has an electric starting system with recoil backup. The SGX generators are CSA-certified. Visit Subaru at Booth C4537. www.subarupower.com
PAVER PROVIDES FLEXIBILITY, ECONOMY Guntert & Zimmerman’s S400 compact slipform paver is an entry-level single/ dual-lane concrete paver that can tackle a wide variety of applications, including city streets, ramps, shoulders, highways, airports, dual-lane, off-set, zero- or minimum-clearance projects and barrier walls. Features like TeleEnd, AccuSteer, and SmartLeg come standard at an affordable price point, according to G&Z. The S400 will be displayed at WoC performing standard slipform paving and pouring barrier wall. This arrangement demonstrates that the machine can perform multiple applications on a single jobsite. With its standard telescopic range of two m. to five m., contractors will be able to pave most single-lane applications without the need for bolt-on extensions. With optional extensions, the S400 paves out to 7.5 m. It is compatible with most options and attachments available on larger G&Z slipform paver models. Eco-Mode reduces fuel consumption by up to 35 per cent. Visit Guntert & Zimmerman at Booth C6812. www.guntert.com.
WOC PRODUCT SHOWCASE of slewing range. For 200-deg. of slewing range with maximum reach, EASy Flex requires extending the opposite side front outrigger by two-thirds, which enlarges the footprint width to just 25 ft. All allowable short-rig scenarios avail-
able through the EASy System are integrated into Schwing’s Vector controls which monitor and ensure the safety of the pump and its operator. Visit Schwing at Booth C5126. www.schwing.com.
SILANE-BASED WATER-REPELLENT PENETRATING SEALERS MAPEI supplies two silane-based waterrepellent penetrating sealers that protect concrete, block, stone and brick substrates against moisture and chloride intrusions, freeze-thaw exposure and such airborne contaminants as acid rain and industrial fumes. Planiseal WR 40 (40 per cent silane) allows interior moisture to escape without affecting its performance. Planiseal WR 100 (100 per cent silane) penetrates deeply to provide long-lasting protection. Visit Mapei Corp. at Booth S10927. www.mapei.com
SYSTEM SAVES SPACE ON CONCRETE PUMP Schwing’s EASy option is now available for its S 43 SX concrete pump with five-section RZ5 Roll and Fold placing boom, as well as the S 58 SX and S 61 SX. The option reduces footprint while allowing full reach of the placing boom off one side of the chassis. Combining the EASy system with the S 43 SX gives a setup area of 17 ft. 2 in. wide, with maximum reach and 140-deg.
See what we have in store for 2016.
From flat saws and power cutters to core drills and demolition robots, we have a lot to offer! See the latest at World of Concrete 2016. Visit us at outdoor booth #O30166. To learn more, visit www.husqvarnacp.ca.
2077 Bond Street • North Bay, Ontario P1B 4V7 • T 800-461-9589 • F 800-825-0028 Copyright © 2015 Husqvarna AB (publ.) All rights reserved. Husqvarna is a registered trademark of Husqvarna AB (publ.).
on-sitemag.com / 51
WOC PRODUCT SHOWCASE
VERSATILE WHEEL LOADER On display at the Doosan booth will be the DL220-5 wheel loader, paired with a Z-bar loader linkage arm as well as an optional
hydraulic quick coupler and pallet fork attachment. The DL220-5 is a 3.0-cu.-yard wheel loader with a Tier 4-compliant Doosan DL06 engine. Ergonomic, interface and lighting upgrades have been made. An optional high-lift configuration provides extra dump height. An optional quick coupler permits easy attachment changes, including buckets (general purpose, light material or multi-purpose) and pallet forks. Visit Doosan Infracore Construction Equipment at Booth C5487. www.doosanequipment.com.
REMOTE CONTROL FOR CAT LOADERS Caterpillar will show the RemoteTask remote control system available for the D Series skid steer, multi-terrain and compact track loaders. The system lets operators precisely control the machines from outside the cab—as far away as 300 m and at a safe distance from potential hazards. Developed in association with TORC Robotics, RemoteTask has virtually no lag time in controlling the machine. The ten-lb. portable control unit mimics in-cab controls and can control more than 200 work tools with all hydraulic functions. The system takes about an hour to install
on the SSL, CTL or MTL, and is transferable among machines. Visit Caterpillar at Booth C6061. www.cat.com and www.torcrobotics.com.
REMOTE-CONTROLLED DEMOLITION The Brokk 400 remote-controlled demolition machine from Brokk Inc. features a large undercarriage for heavy-tracking applications like tunneling and mining and for enhanced stability when operating with dynamic attachments, including metal shears and scabblers. The upgraded machine handles attachments as heavy as 1,420 lb. and its hydraulic quick-hitch system eliminates the need for hard pinning. When paired with Atlas Copco’s SB 552 hammer, the unit has a hitting power of 773 ft.-lb. at the tip of the tool. The machine weighs 11,240 lb., is 63 in. wide and nearly 81 in. tall. A 30 kW electric motor provides emissions-free operation in confined areas. The three-part boom can operate at angles of up to 30 deg., reaching 22 ft. horizontally and 24 ft. vertically. Its box-weld design provides protection for cylinders and hoses. Visit Brokk Inc. at Booth C4519. www.brokk.com/us.
ADVERTISERS’ INDEX & WEBSITES Adrian Steel.................www.AdrianSteel.com............................................35
Imperial Oil....................www.mobilindustrial.com.........................................7
B2W Software............www.b2wsoftware.com/products/maintain....15
KPI/JCI...........................www.kpijci.com.........................................................22
Capital Safety..............www.exofitstrata.com.............................................13
Kubota Engine.............www.KubotaEngine.com/Success......................38
Detroit Diesel...............www.demandetroit.com.........................................25
Mack...............................www.MackTrucks.com/mDRIVEHD......................9
Dexter & Chaney.........www.dexterchaney.com/today............................43
Mapei.............................www.mapei.com........................................................49
Doosan Infracore........www.DoosanEquipment.com/Randy.................. 11
Putzmeister..................www.PMAProTech.com.........................................44
Doosan Portable Power.........www.DoosanPortablePower.com.......................29
Quikrete.........................www.quikrete.com...................................................41
Freightliner...................www.FreightlinerTrucks.com/122SD............. 2, 27 Geith...............................www.geith.com..........................................................28
Sprinter..........................www.Sprinter4x4.ca.................................................56 Thermacell Heated Products.......www.thermacell.com...............................................31
Gomaco.........................www.gomaco.com....................................................47
Topcon...........................www.topconpositioning.com.................................33
HCSS..............................www.HCSS.com........................................................34
Western Star Trucks.www.westernstar.com............................................20
Husqvarna....................www.husqvarnacp.ca..............................................51
World of Asphalt.........www.worldofasphalt.com......................................36
Hyundai.........................www.hceamericas.com............................................4
World of Concrete......www.worldofconcrete.com...................................55
52 / DECEMBER 2015
RISK By David Bowcott
E
The growing role of strategic information
very year, I attend several conferences related to the construction industry. Most are organized by a particular construction association. The Canadian Construction Association is likely the biggest, and then there is a flurry of conferences put on by regional or specialty construction associations. Besides the construction association events, there are hundreds of conferences put on by conference companies – several with specific topics, usually related to legal issues. One major event for the larger and strategic players within the construction space is the National Conference put on by Canadian Council for Public Private Partnerships. This just happened in November, and it was a great event as usual. All of these conferences are valuable, but none specifically addresses construction risk in the face of an ever-changing construction marketplace, to draw broad participation from all stakeholders within the construction sector. There are some conferences put on conference companies, but none can draw the audience one would see at CCA or CCPPP (800 to 1,500 attendees). South of the border they have just such a conference, and interestingly enough it starting to draw Canadians. The Construction Risk Conference (CRC) is organized by the International Risk Management Institute (IRMI). The CRC is attended by more than 1,500 folks from around the world; however, it is largely focused on US-centric risk issues. That aside, the conference is entirely dedicated to risk identification, quantifica-
tion and treatment – something that is sorely needed, given the acceleration of change facing the global construction industry. Attendees include contractors, design firms, lawyers, insurance underwriters and brokers, and specialty consultants. It truly is the preeminent conference for risk management within the insurance industry.
The following is a sample of content at this year’s event, which took place in Las Vegas in November: • Supply Chain Risk Management • Risk Implications of the Changing Construction Workforce • Commercial General Liability Coverage for Rip and Tear Costs • Cyberliability • Whose Design is it, Anyways? • Back from the Brink: The Challenge of Rescuing a Troubled Project • Survey of the Construction Defect Landscape • Up in the Air: Risks and Insurance for Drones in Construction (every conference has a drone session these days!) In addition to solid content, the CRC has tremendous attendance at a senior leadership level from all key stakeholders. This makes it a tremendous networking
event. Sometimes, attendees don’t even go to the sessions. Rather, they spend the week meeting with each other and connecting with the key decision-makers within their organizations. There is nothing like building relationships with key partners to get deals done and IRMI, with a backdrop of risk, is an ideal platform for doing so. If you are a first-timer, IRMI also offers an entirely separate session known as Building a Firm Foundation (BFF),which is a two and a half day immersion program to help those with limited risk management experience develop the necessary knowledge to ensure that their organization is wellpositioned to take on risk profitably. Canada needs a construction risk conference dedicated to risks specific to the Canadian construction marketplace. Perhaps one of the large construction conferences referenced above should look into developing such a conference in the future. That said, IRMI’s Construction Risk Conference seems to have hit the target quite well and is drawing the best of the best. So, until there is a Canadian event, I’d recommend more Canadians attend that conference. I’d further recommend that IRMI consider making the conference more international, perhaps rebranding it as an International conference or at least a North American conference. Hopefully, we’ll see more Canadians attending the conference next year (which, by the way, will be in Orlando, Fla.) They will get tremendous value from their attendance and will not only experience very strong content, but will also have the opportunity to develop strong relationships with key decision-makers throughout the construction risk management community. David Bowcott is senior vice-president and national director of Large/Strategic Accounts at AON Reed Stenhouse Inc. Send comments to editor@on-sitemag.com.
on-sitemag.com / 53
CONTRACTORS & THE LAW By Alexander Bjornson & Dirk Laudan
C
The BC Builders Lien Act: Releasing the holdback
onstruction industry members must regularly decide when to release the holdback under the British Columbia Builders Lien Act. When you make a payment on a construction contract or subcontract, then with some exceptions you must retain a holdback on the amount otherwise payable. The holdback is 10 per cent of the greater of the value of the work or material actually provided and the amount paid on account of the contract price. The holdback period is 55 days. The holdback may be released on the 56th day after “completion,” unless a valid lien is filed on title or a lawsuit commenced claiming a lien against the holdback. The complicating question is what constitutes “completion”: Where there is a “head contractor,” the holdback period for the project runs from when that head contract is complete. A contract or subcontract is complete when the work remaining is capable of being done for not more than three per cent of the first $500,000 of the contract price, two per cent of the next $500,000, and one per cent of the balance (the “3-2-1 test”). It is also complete when it is validly certified to be complete. The certifier should certify it complete when it is actually complete under the 3-2-1 test, but those involved in the project should be able to rely upon the certificate, without determining whether it is strictly correct. Where there is no “head contractor,” the project is considered complete when the project (or a substantial part of it) is in use or ready for use for its intended purpose. Only contracts and subcontracts can be certified complete, not projects or scopes of work. Where there is no “head contractor,” certification can still be done for individual contracts. It is also possible to certify subcon-
54 / DECEMBER 2015
tracts complete prior to completion of a general contract. In that case, the subcontract holdback is released early, along with an equal amount of the general contract holdback. The courts apply the rules for certificates of completion strictly, and mistakes may make them invalid. If the holdback is released upon an invalid certificate of completion, the person relying on that certificate may be liable for lien claims without the holdback as security. THE SEVEN STEPS TO FOLLOW: he request Certification of completion 1. T must be done at the request of the person from whom the holdback was retained. 2. The payment certifier Certification must be done by the payment certifier – the person contractually identified as responsible for certification of payment. In CCDC2, this is the “consultant.” 3. The form Use the official form of certificate of payment, in the BC Builders Lien Form Regulation. If you use the wrong form, it might not be a valid certificate. 4. Issuance and publication The certificate must be issued within 10 days of its request, and published within seven days after that in the following ways: • Delivering a copy to the owner, the head contractor (if one exists) and the requester of the certificate; • Delivering a notice of certification (a different form!) to anyone who made a prior written request for one; and • Posting the notice of certification “in a prominent place on the improvement.” A payment certifier’s failure to do these things may invalidate the certificate of completion. A payment certifier not in compliance with these publication requirements is liable to anyone suffering resultant loss or damage.
5. The holdback period The holdback period expires after 55 days following the date the certificate of completion is issued. Payment of the holdback can be made on the 56th day, assuming no valid lien is filed on title and no lawsuit is commenced to enforce a lien Strictly speaking, the holdback period runs from the earlier of actual completion (or abandonment or termination, as the case may be) and the issuance of the certificate of completion. 6. Check for liens Search all applicable land titles for lien claims. Where applicable, consider searching mineral, petroleum, coal and aboriginal title. Conduct a litigation search to see if there is a lien claim against the holdback. 7. Actual release After the holdback period expires, if no liens are filed, and no lawsuit against the holdback is commenced, the holdback is subject to release under the Builders Lien Act, but there still may be impediments. The party retaining the holdback might assert a backcharge against the holdback. Other creditors, including CRA, may try to claim the holdback and their priority may have to be considered. Please note that in other provinces and territories of Canada, the issues and pitfalls can be quite different, although general principles may be similar. This article is for general information purposes only, and may not be relied on for legal advice. Dirk Laudan is a partner at Borden Ladner Gervais LLP. He is co-author of the legal textbook Guide to Builders’ Liens in British Columbia. Alexander Bjornson is an associate at BLG practicing in construction and surety disputes, real estate law, and commercial litigation.
EFFICIENCY-BOOSTING PRODUCTS • 100+ EDUCATION SEMINARS • LIVE DEMOS • EXCITING COMPETITIONS
Everything starts at World of Concrete. It’s the industry’s only annual international event dedicated to the commercial concrete and masonry industries. And, it jumpstarts each new year by supplying you with the latest innovations, expert know-how and best new products to finish your work faster, better and more profitably. From the start of each job to its successful completion—we’ve got you covered.
START NOW. www.worldofconcrete.com
FEBRUARY 2-5, 2016 SEMINARS: FEBRUARY 1-5 LAS VEGAS CONVENTION CENTER
LAS VEGAS, NV, USA A selected participant in the International Buyer Program
Š2015 Mercedes-Benz Canada Inc.
Forge ahead. The Sprinter 4x4 is the only 4-wheel drive commercial van in Canada. With its powerful, yet lightweight electronic system, you get the traction you need without sacrificing payload capacity or fuel efficiency. And when conditions go from bad to worse, the low-range can be engaged for maximum traction. See where it can take you at Sprinter4x4.ca.