On-Site Magazine March 2012

MARCH 2012

CONC RETE O

N-SIT E pg.37

TO BETTER INFRASTRUCTURE

pg.24

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VOLUME 56, NO.2 / MARCH 2012

cover story 24 P3s drive the way to better infrastructure

Asset-management models gain favour

Departments Comment 5 It takes two

8

32

News Industry news

14

Test Drive Overcoming obstacles at World of Concrete

14

Calendar

48

Upcoming industry events

16

Construction Statistics The latest news on building permits and construction employment

coLUmns 48 Software How to become a social media superstar

50

18

Risk Strike a balance

52

Funny Photo Funny Photo contest

54

Contractors and the Law Resolve disputes out of court

51

Index of Advertisers

features 18

32

Scissor, straight and articulated boom AWPs lift workers and gear higher than ever.

Looking into cold-weather features for mid-size wheel loaders.

Looking up

Winter wheelin’

IN THIS ISSUE 37

CONCRETE ON-SITE Checking out the QEW Niagara Widening, an Ontario Concrete Award-winning project

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5/10/11 9:45 AM

COMMENT

It takes two

I

Get the latest construction news!

Follow us on Twitter @OnSiteMag

t’s no secret that infrastructure projects are at the core of Canada’s construction industry.

Whether it’s the roads we drive on, schools our kids go to, or health care facilities that we visit—strong infrastructure directly impacts the quality of our daily lives.

In order for Canada’s infrastructure to be strong, both the public and private sectors need to work together. This message is being delivered loud and clear by the construction industry.

According to a KPMG Global Construction Survey released last month, “lack of leadership by government” and “lack of private sector initiative” were the two most significant barriers to infrastructure development in an industry that is facing increasing demand.

“Governments at all levels are tightening their belts, but as major urban areas strain to support growing populations, the need for infrastructure is growing,” said Brad Watson, partner and head of KPMG in Canada’s Global Infrastructure Advisory Practice. “The survey results show that industry is expressing its frustration with the obstacles that currently exist.

Through our work, we are seeing greater synergies between the public and private sector, which is encouraging more private sector investment.”

The report also found that infrastructure is so vital to growth that even the most cash-strapped governments have recognized that they will need to make it a higher priority—or face a drastic change in lifestyle for their people. Worldwide,

the expected cost for infrastructure over the next 40 years is approximately US$70 trillion.

When government and the private sector do join forces in public-private partnerships (P3s), there is strong evidence to suggest that these collaborations lead to better quality infrastructure projects that result in greater longevity, cost savings and the use of more sustainable materials.

In that same vein, risk consultant David Bowcott says a new era is dawning in construction, one where cost is no longer king and the emphasis is gradually shifting to infrastructure life-cycle costs. He believes that trend is being driven by P3s in part, but more so about an entire asset management strategy. See P3s drive the way to better infrastructure on page 24.

With economic uncertainty, skills shortages and government deficits still posing very real threats to the industry, it is clear that government and the private sector must work together to find solutions to these challenges in order to meet growing infrastructure demand.

Corinne Lynds / Editor CLynds@on-sitemag.com

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contributors

Meet our contributors JiM Barnes / Contributing editor “The construction industry is rife with waste, most would agree. Enterprise asset management concepts, focused on life-cycle costs and allocating risk to those best able to manage it, is growing steadily in importance.”

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 assistant editor | Andrew Snook (416) 442-5600 x3524 ASnook@on-sitemag.com contributing editor | James A. Barnes art director | Melissa Crook (416) 442-5600 x3260 MCrook@bizinfogroup.ca associate Publisher | David Skene (416) 510-6884 DSkene@on-sitemag.com account Manager | John Chiasson (416) 510-6791 JChiasson@on-sitemag.com

DaviD BowCott / senior vice-president, national director large/strategic accounts, construction and infrastructure services, aon “A delicate balance needs to be struck between lenders and contractors — the security has to satisfy the lenders need for responsiveness in the event of a contractor non-performance event, and at the same time not overly constrain the contractor’s ability to operate its business.”

Christopher eaGles / partner at Borden ladner Gervais llp “Mediation can be much more cost effective than litigation or arbitration, if it results in a resolution.”

sales & Marketing coordinator | Kim Rossiter 416-510-6794 KRossiter@bizinfogroup.ca Production Manager | Karen Samuels 416-510-5190 KSamuels@bizinfogroup.ca circulation Manager | Selina Rahaman (416) 442-5600 x3528 SRahaman@bizinfogroup.ca Published by big Magazines lP, a division of glacier big holdings company ltd.

80 Valleybrook Drive, North York, ON M3B 2S9 big Magazines lP Executive Publisher | Tim Dimopoulos Vice-President of Canadian Publishing | Alex Papanou President of Business Information Group | Bruce Creighton subscriPtion rates Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues.

Privacy notice From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 e-mail: jhunter@businessinformationgroup.ca Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9

DaviD GoDkin / Construction writer “Scissor, straight and articulated booms are helping contactors lift workers and gear higher, while reaching in, over and around more difficult obstacles than ever before.”

Canadian Publications Mail Agreement No. 40070230 On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time.

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

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

Canadian publications Mail Sales Product Agreement 40069240 Established in 1957, On-Site is published by BIG Magazines LP a division of Glacier BIG Holdings Company Ltd.

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Inc. ISSN: 1910-118X We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.

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

MeMbers oF

6 / March 2012

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INDUSTRY NEWS level of activity anticipated and will have to utilize mobility to bring workers in from other markets across Ontario and possibly explore the use of temporary foreign workers.”

By 2019, the Construction Sector Council (CSC) expects Ontario to face a shortage of almost 100,000 skilled tradespeople, with trades such as boilermakers, gasfitters, industrial instrument technicians, millwrights, pipefitters and welders accounting for some of the biggest shortages.

The OCS survey included 500 non-residential industrial, commercial and institutional contractors across Ontario. It was conducted from Nov. 28 to Dec. 14 in 2011.

Ontario facing future shortages in skilled tradespeople Ontario needs more tradespeople. That’s the message coming from the Ontario Construction Secretariat (OCS).

A recent OCS survey found 26 per cent of Ontario’s contractors expect to see a decrease in the number of skilled construction tradespeople available in 2012.

That concern appears to be especially strong in northern and eastern Ontario, with

30 per cent of eastern Ontario’s contractors, and 34 per cent of northern Ontario’s contractors, expecting skilled worker shortages in the construction field. These two regions have the highest expectations for business growth this year.

“Some regions of the province will experience tighter market conditions than others,” explains Kalvin Reid, a consultant for the OCS. “Northern Ontario in particular will have some challenges in staffing the

Sean Strickland, CEO of the OCS, says the combination of an aging workforce and major construction projects are fuelling most of the demand for increased numbers of skilled tradespeople. Some of the bigger construction projects include: expanded public transit throughout the GTA and central Ontario, mining facilities in northern Ontario, infrastructure projects for the 2015 Pan Am and Parapan Am Games and energy infrastructure investments, such as the refurbishing of the province’s nuclear power plants.

Strickland says there are several initiatives currently underway to help fill the page 10

SNC-Lavalin and Aecon awarded $600M contract SNC-Lavalin Group Inc. and Aecon Group Inc. have roughly 600 million reasons to be happy about their recent joint venture for work on the Darlington Generating Station.

The Ontario Power Generation (OPG) awarded the two companies a contract valued at approximately $600 million to carry out the Definition Phase for the Darlington Retube and Feeder Replacement (RFR) Project, which will include the refurbishment of the four reactors at the Darlington Generating Station, located in Clarington, Ont. The facility provides approximately 20 per cent of Ontario’s electricity needs and has a total output of 3,512 megawatts (MW).

The RFR project will have two phases—a Definition Phase,

which will run from 2012 to 2016, and an Execution Phase from 2016 to 2023.

The Definition Phase is comprised of the construction of a full-scale reactor mock-up to simulate key elements of the refurbishment work—to be carried out by Toronto, Ont.-based Aecon Industrial, the development of specialized tooling required—to be carried out by Montreal, Que.-based SNC-Lavalin, a detailed scope, schedule and budget for the project’s Execution Phase and the procurement of reactor components for the first unit to be refurbished.

The refurbishment of Darlington’s four reactor cores will take place during the Execution Phase of the project, using tools and methods developed and tested during the Definition Phase.

8 / March 2012

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Unveiling the newly built

on-sitemag.com

The new dynamic site is your go-to destination for Canada’s construction industry. » Now populated with the latest industry news. » New search capability allows you to find articles and news items on your favourite topics by simply selecting a topic or using the keyword search functionality. » Share your thoughts on the news and events that shape our industry. » Flip through past issues of On-Site with our new digital magazine format. » Review the current Top Contractors Report and get your company listed. » Send your submissions, upload your photos and peruse past winners in our Funny Photo Contest. » Check out our clients’ products in the Products section.

Construction Guide Online Canada’s only complete directory of products, manufacturers, distributors and rental houses serving Canada’s construction industry has become even more valuable and time saving. Now you can view company profiles and link directly to their websites and, thanks to Google Maps, we’ll direct you right to the door of local distributors and rental houses!

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INDUSTRY NEWS from page 8 expected void in skilled tradespeople.

“From the unionized construction industry, we’re constantly bringing in new apprentices to meet market demand,” explains Strickland. “In the Province of Ontario, there’s also the Ontario Youth Apprenticeship Program, the colleges are also encouraging people to get into the trades and ourselves—the Ontario Construction Secretariat—run an annual career fair.”

Strickland says this year’s OCS trade fair, Future Building Toronto 2012: Hands On Construction Expo, is expected to have approximately 10,000 students in attendance. The fair is designed to introduce students, ranging from Grades 7 to 12, to different career options within the construction industry. It features workstations where students get to try their hands at a variety of trades, including laying brick and

tile, welding pipe and more.

Strickland encourages anyone considering a career in the trades to visit the trade fair, which will take place from March 27 to 29 at the Better Living Centre, located at the Exhibition Place in Toronto, Ont. He adds that supervisory and management positions within the industry will also experience a shortage in the future. “One of the other things we share with young people, or young adults looking to make a career change, is that it doesn’t start or end when you become a certified tradesperson or journeyperson, it really opens the door to a lot of other possibilities. Many of our contractors in the Province of Ontario actually started out as tradespeople.”

For more information on Future Building or the OCS survey, visit: www.iciconstruction.com

CCA supports Kenney’s proposed immigration reforms to address labour shortages Minister of Citizenship and Immigration Canada Jason Kenney gave a keynote speech addressing labour shortages that hit the nail on the head for the Canadian Construction Association (CCA).

While giving his keynote address to the National Metropolis Conference in Toronto, Ont., Kenney spoke about proposed reforms to speed up the processing of people looking to immigrate to Canada as skilled workers.

The CCA stated that those measurements could be instrumental in addressing current and future labour shortages in Canada’s construction industry.

Michael Atkinson, president of the CCA, said the current immigration system

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12-03-15 4:07 PM

SKI

INDUSTRY NEWS Jason Kenney, Minister of Citizenship and Immigration Canada.

doesn’t adequately address the Canadian construction industry’s needs or the projected growth of the Canadian economy.

The CCA said that current projections show the Canadian construction industry will have a shortfall of 325,000 workers by 2019; and that demand for construction services in Canada will continue to increase throughout the decade, making Canada the fifth-largest construction market in the world.

Kenney’s speech emphasized changes

NEB gives go-ahead for $324M Northwest Mainline Expansion

to the Federal Skilled Worker Program, which currently requires applicants to have experience in one of 29 occupations in demand or have a job offer in Canada.

He also discussed a need to make the points system for assessing federal skilled worker applicants “more flexible and intelligent.”

Kenney said greater emphasis should be placed on the importance of language and recognizing that language abilities required for successful integration into Canada are different depending on type of employment, using the example of comparing the requirements for a doctor as opposed to a welder.

He also said Canada’s immigration system should place greater emphasis on younger workers with high-quality credentials that can be recognized quickly.

The National Energy Board recently gave NOVA Gas Transmission Ltd. (NGTL) the green light for the Northwest Mainline Expansion Project.

The $324-million project will be comprised of the building and operation of three natural gas pipeline loops in northeast B.C. and northwest Alberta— totalling 111.2 kilometres, which will connect natural gas supply lines from the Upper Peace River area to various Canadian and American markets.

The NEB stated it is satisfied with NGTL’s efforts to minimize potential environmental impacts by proposing a RoW that is largely alongside existing RoWs, and added that if the project is built, that it would not result in new permanent access roads.

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INDUSTRY NEWS News Briefs > John Deere’s Construction & Forestry division announced it has formed an alliance with Topcon Positioning Systems. The deal will allow John Deere to sell, support and factory-install Topcon’s 3DMC2 grade control solutions on its dozers and motor graders. Topcon components will be installed and distributed in John Deere products throughout Canada and the U.S. starting this fall.

> Trinity Building + Construction Management Corp. has created a Canadian branch of its business called Trinity Builders and General Contractors, ULC. Trinity has already been awarded its first Canadian project, a retail build-out for J. Crew in Vancouver, B.C.

> ecoTECH Energy Group, Inc. has begun to clear the McBride, B.C. Lamming Mills site for its Aquaponics and Combined Heat and Power (CHP) facility that is slated for construction this spring.

The Canadian Ministry of Forests and Range has granted ecoTECH its Timber Mark Certificate and a local logging company has been contracted to selectively cut enough trees to allow room for the development, whilst retaining as many trees as possible on the site.

Financing for the McBride project has been addressed through a non-dilutive debt financing package from Corpfinance International Limited (CFI) to fund 60 per cent, or $55 million.

> The URS Corporation is expanding its presence in the North American oil and gas industry. The San Francisco-based engineering and construction company announced it will acquire Flint Energy Services Ltd. for $1.25 billion, or $25 per share. The transaction is expected to be complete in the second quarter of 2012. The acquisition is expected to add approximately $3.5 billion to URS’ book of business.

> The Government of Canada has agreed to invest upwards of $55 million to assist in the construction of a new multi-user dock in the Port of Sept-Îles, Que. The deep-water dock will be used for shipping iron ore from mines in Quebec and Labrador, to help the port meet global shipping demands for the iron ore industry. The construction of the dock is expected to create 1,000 new jobs—with an additional 200 jobs being created at the Sept-Îles Port Authority for operational support—over a two-year period. The overall project is valued at $220 million and is expected to be complete by March 31, 2014.

> Edmonton International Airport’s (EIA) new 41,340-sq.-metre terminal expansion for travellers flying to the U.S. has officially opened. The terminal is part of the EIA’s $1.1-billion airport expansion project. It was built using a sustainable design and will be one of the first airports built in North America that will formally apply for LEED certification.

> PCL has offered $600,000 worth of disaster relief services in Canada and the United States over the next three years. The donations will be divided into three annual donations of $100,000 for both Red Cross organizations.

12 / March 2012

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INDUSTRY NEWS

Canadian construction companies top 2011 AEM export list Canadian construction companies were buying American in 2011, according to the Association of Equipment Manufacturers (AEM).

The AEM recently released the top-10 countries the U.S. exported construction equipment to in 2011, and Canada topped the list with purchases totalling $7.2 billion, an increase of 40.5 per cent.

Overall, U.S. construction equipment exports jumped 43 per cent in 2011, compared to 2010, for a total of $23.5 billion.

The increase marks the second-straight year of overall increases in construction equipment exports for the U.S. The country’s equipment exports grew 28 per cent in 2010—compared to 2009, when exports decreased by 38 per cent.

CAWIC launches online career centre and mentorship program The Canadian Association of Women in Construction (CAWIC) made an announcement on Feb. 10, regarding increased benefits for members. Two of the benefits were an online self-service career centre and a new mentorship program.

The self-service career centre offers CAWIC members an opportunity to post their resumes online and apply to posted positions within Canada’s construction industry.

The postings are available for public viewing and non-CAWIC members can also post on the site for a fee.

CAWIC’s mentorship program is designed to help its members create connections with their peers in the CAWIC who will offer them advice and guidance through their own personal experiences in the construction industry.

Other new benefits include: preferred corporate rates with Holiday Inn Toronto Airport East and under the Westmount Hospitality Group VIP program with participating hotels, a partnership with Moxie Trades that include a 20-per cent discount for online purchases, the hiring of a full-time administrator and a social media subcommittee—CAWIC is now on various social media sites, including Twitter, Facebook, LinkedIn and Google.

For more information on the benefits of CAWIC membership and its activities, visit www.cawic.ca

$14M in improvements to highways near Vernon, B.C. Two highways near Vernon, B.C. will receive upgrades to the tune of approximately $14 million this summer.

In Coldstream, B.C., about 2.2 km of Highway 6 is going to be realigned between Grey Road and Ricardo Road. The upgrades will include: straightening sharp curves to improve sightlines and widening highway shoulders for improved safety. The intersections at Grey, Kalamalka and Ricardo roads will have left and right turn lanes constructed and a new Kelowna Pacific Railway crossing will be built.

The project is expected to cost roughly $11 million and goes to tender this spring.

It is expected to be complete by the summer of 2013. A highway improvement project for approximately four kilometers of Highway 97A, north of Vernon, B.C. will also go to tender this spring, at a value of approximately $3 million. The project will resurface a section of Highway 97A from Crozier Road to Pleasant Valley Cross Road, completing highway resurfacing from Vernon to Armstrong, B.C. The project is expected to be complete

by August 2012. on-sitemag.com / 13

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INDUSTRY NEWS

Test drive

at how easy the joystick controls were to operate the

Overcoming obstacles at WOC

forks—those PVC pipes never stood a chance —and at the

By Andrew Snook

great front and rear visibility

While running amok at the World of Concrete,

the 621F-series wheel loader

I had while driving. Turns out I got the opportunity to check out Case Construction’s Triple Threat Rodeo Competition. I watched as operators dazzled the crowd with their excavating excellence

Octavio Miranda operates a loader backhoe in T T R fi nal s.

has the lowest rear hood in the industry, one of the new

features of the F-series machines.

and superior skills on the wheel loader during the final

It also features a Tier 4i-certified engine with a 151 hp

competition. The next day, I got a chance to get up close

(113 kW), a lifting capacity at full height of 16,316 lb and

and personal with the 621F wheel loader, unveiled for the

an operating weight of 26,641 lb.

After I hopped off the machine, the judge offered me

first time at WOC. Case marketing manager Tim O’Brien was nice enough

congrats for completing the course but let me know I definitely would not be in the running for best time.

to let me hop in and give the wheel loader a test run

That’s okay, Octavio Miranda, of Ancaster, Ont. more

through one of the obstacle courses, set up to let

than made up for my shortcomings behind the wheel,

operators tryout the new loader first-hand.

With the guidance from the marketing team, I was able

taking home the Triple Threat Rodeo championship,

to get through the obstacle course in not-so-record time

along with a 2012 Ram 2500 truck for himself and a

without destroying any of the obstacles or running over

Case TR270 compact track loader with Towmaster trailer

the beef jerky-wielding Sasquatch—thanks guys!

for L.M. Enterprises, his sponsoring company.

Being a first-time wheel loader driver, I was surprised

Way to represent Canada Octavio!

April 2 to 4

May 1 to 2

May 23 to 27

June 10 to 12

June 11 to 13

The Building Enclosure Science & Technology Conference (BEST3)

Partners in Prevention 2012 Health & Safety Conference & Trade Show

CSC Conference 2012

CSA Annual Conference

Delta Ottawa City Centre, Ottawa, ON

Quebec City Convention Centre, Quebec City, QC.

Canada Green Building Council Summit

This year’s Construction Specifications Canada (CSC) conference “Reflections” will offer attendees technical programs on a variety of topics, including: LEED from a proponent’s viewpoint and from an opposing viewpoint, solar collector arrays, tracking labour construction markets, BIM 2012-2015, designing successful slab on grade concrete floors and more. www.csc-dcc.ca/Conferences

The Canadian Standards Association’s annual conference and committee week (committee meetings run to June 15) offers attendees a chance to collaborate on new ways to improve safety through standards. It will examine product safety, health care, occupational health and safety, greener environments and more. www.csa.ca/cm/ca/en/ annual-conference-andcommittee-week

Atlanta, GA. The third edition of BEST (BEST3) features three conference tracks: energy efficiency; whole building and fenestration; 22 sessions with more than 100 peerreviewed papers and a products expo offering attendees a chance to see the latest developments in building envelope products and services. www.thebestconference.org

International Centre, Mississauga, ON. This tradeshow is Canada’s largest health and safety event. It features more than 400 exhibitors and 60 interactive sessions and hosts more than 4,500 health and safety professionals. www.healthandsafetyontario.ca/PartnersInPrevention2012/Home.aspx

Metro Toronto Convention Centre, Toronto, ON The Canada Green Building Council’s National Conference & Expo will host more than 1,000 attendees and 100 tradeshow booths.

The theme this year is Beyond Buildings: The Green City. Attendees will have ample opportunity to network and collaborate with other professionals in the Canadian green building industry. www.cagbc.org

For more industry events go to on-sitemag.com

14 / March 2012

8-14_News.indd 14

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$ billions 12.0

seasonally adjusted

$ billions 12.0

11.0 10.0

CONSTRUCTION STATS

11.0 9.0

A selection of data reflecting trends in the Canadian construction industry

10.0

8.0

9.0

7.0

8.0 7.0

lV l ll lll lV l

2006

2007

lV l ll lll lV l ll lll lV l ll lll lV l ll lll lV l ll lll lV

$ billions Building permit values drop2011 in January 2006 2007 2008 2009 2010 7.4

$ billions 7.4 $ billions 7.0 6.6 12.0 6.2 5.8 11.0 5.4 5.0 10.0 4.6 4.2 9.0 3.8 3.4 8.0 3.0 J 7.0

seasonally adjusted

J

lV l ll lll lV l ll lll lV l ll lll lV l ll lll lV l ll lll lV

2006

2007

The total value of building7.0permits decreased by 12.3 per cent to $6 billion 6.6 cent increase in December. The decrease in January, after a 10.5 per 6.2 stemmed from declines in both the residential and non-residential sectors.

5.8 Non-residential permits issued by municipalities fell 23.1 per cent, following 5.4 5.0December. Six provinces experienced declines a 0.3 per cent increase in 4.6 in non-residential construction intentions, with Alberta accounting for the 4.2 largest number of declines.

3.8 Institutional building permits fell 27.9 per cent in value to $309 million,3.4for its third consecutive monthly decline and its 3.0 lowest level since January 2005. The total value of industrial building J J J J permits also declined for the third straight month, cent 2009 2010 falling 20.1 2011 per 2012 to $274 million. Commercial building permits also fell, in total value, dropping 22.5 per cent to $1.2 billion, after increasing 34.6 per cent in December.

2009

2008

J

2010

2009

2010

2011

J 2012

thousands

350

$ billions

300

17,400

450 thousands Employment holds steady in February

400

17,600 Employment was unchanged in February with the unemployment rate 350 down 0.2 percentage points to 7.4 per cent. Employment was up by 121,000 compared to 12 months earlier. The majority of the increase occurred in the 300 17,400 first half of the period, led by the construction and building sectors, which 250 offset declines in other areas.

17,200 J 2011

J 2012

200 150

17,000

450 400

17,600

2011

$ billions

250 17,200

200 150

17,000

100 16,800 16,000

50 J

J

J 2009

2010

2011

0

JF 2012

Actual

100

$ billions

16,800

50

450 400

16,000

350

J

J

J 2009

2010

2011

JF 2012

Jump expected in investment in construction, 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 machinery and equipment in 2012 Canadian public andActual private organizations intend to invest $394.1 billion in Preliminary actual Intentions construction and machinery and equipment in 2012, up 6.2 per cent from investment in 2011. The majority of the increase (56.6 per cent) was led by higher investment intentions in the mining and oil and gas sectors. Public and private organizations anticipate an 8 per cent increase in capital construction investment, to $281.7 billion in 2012. Investment in machinery and equipment is expected to increase 2.1 per cent to $112.4 billion.

300 250 200 150 100 50

2011

0

JF 2012

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Actual

Preliminary actual

Source: Statistics Canada

Intentions

16 / March 2012

16-17_Stats.indd 16

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AWPs

up

Looking

By DaviD GoDkin

O

ur beginnings never know our ends. For John Grove it began back in 1967 when he watched in horror as two workers on a scaffold high above him at the legendary Hoover Dam caught the wrong end of a power cable and were electrocuted. Still shaken days later, Grove wondered how something like this could have happened on a supervised site.

Then he had an idea. Why not design something safer and more stable than scaffolding that also improved productivity.

Together with two friends he purchased a small metal fabrication business, called it JLG Industries Inc., and began kicking around design ideas. Three years later, the world’s first aerial work platform (AWP) was born.

Today, AWPs play an important role at industrial and construction sites across North America. Scissor, straight and articulated booms are helping contactors lift workers and gear higher, while reaching in, over and around more difficult obstacles than ever before. Four manufacturers talked to us about what contractors should be looking for when purchasing or renting an AWP.

BefOre lOOking up, lOOk dOwn…

Scissor, straight and articulated boom aWPs lift workers and gear higher than ever

Most contractors who rent an AWP (generally preferred over buying) will know the conditions at the job site and consequently which lift will work best. They’ll know if it’s an indoor application, a two-wheel drive electrically driven lift will eliminate dangerous emissions. They will also understand that the machine’s size and turning radius will need to be appropriate for the building’s interior dimensions. More rigorous outdoor terrain will require four-wheel drive, says Genie Industries’ Chad Hislop, and oscillating axles to avoid spinning tires and ensure continued traction.

“Even with traction control systems, when you have a tire spinning in the air you’re still losing power. You’re not effectively putting that power to the ground. When the machine is stowed, active oscillating allows the front axle to pivot and make sure all four wheels are on the ground.”

Genie’s scissor and boom lifts (part of Terex’s AWP division) offer axle oscillation in both a stowed or elevated position, a “big deal”, says Hislop, because you need four wheels on the ground axles under all conditions. But Snorkel North America president David Smith says all this goes for naught if you haven’t

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AWPs

adequately evaluated the ground conditions before selecting an AWP. In fact, he calls floor loading and the failure to adequately compact a job site so that a lift has a smooth, level surface to sit on “one of the biggest issues” facing contractors today. Municipal sidewalks, for example, are typically comprised of a three- to fourin. slab over plumbing and other services that can complicate the surface area beneath the AWP’s wheels.

“If those four wheels of whatever aerial lift you’re using are not stable and don’t have a good footing there, you’re falling over. We see that time and time again.”

“If those four wheels of whatever aerial lift you’re using are not stable and don’t have a good footing there, you’re falling over.

We see that time and time again.”

It’s your rent or sales rep’s job to make sure that doesn’t happen, Smith adds. First by being fully up to speed on International Platform Access Federation (IPAF) standards for the safe application of aerial lifts, and second by adequately diagnosing ground conditions at your job site. But a knowledgeable sales or rental rep is no substitute for a well-informed customer, Smith adds; he recommends that contractors familiarize themselves with the AWP reference guides and check lists available at IPAF’s website, www.ipaf.org/.

Another key consideration, particularly for scissor lifts, is machine size and platform width. JLG global product director Jeff Ford says a large platform “will put more people and gear up into the air” and keep them there, minimizing down time and increasing productivity. Operator performance and productivity on a scissor lift are functions of platform space; you skimp on this at your peril, product specialists agree.

nOw lOOk up…lOOk way up…

All agree what customers demand year after year are AWPs that are taller and can reach further than ever before. To that end, JLG introduced the 1500 SJ in 2011. At 150 ft., it’s “the largest telescopic boom ever created,” says Ford. It is ideal for multi-story office buildings, stadium construction and maintenance, petrochem and power plant construction. “Typically, you’re limited to 135 ft.; now you can get another story and a half up that building without using a crane.”

Genie’s boom lift product manager Mike Northcott reminds us, however, that there are trade-offs the higher you go. “When you go higher you have to add counter weight to the machine, for example.

You may also have to increase your wheelbase by adding retractable or extended axles.” This in turn may require additional wide or heavy

load permits when transporting the boom to and from the job site.

A telescopic boom is also at a disadvantage when you have to get up, over or around an obstruction such as a wall or building.

That’s why Genie introduced the articulating boom back in 1985.

Since then its booms have been lowered into Alaskan sulfur mines, used on Hollywood movie sites and as the inner workings of a giantsized dragon puppet at Disneyworld.

The most fascinating application? Construction of a new research station in the Antarctica jacked up on steel legs to keep it above the snow and attached to skis for periodic relocation when the ice shelf breaks off into icebergs. To assist construction, British Antarctic Survey (BAS) bought two VGenie articulating Z-60/34 booms fitted with the Loegering QTS track system from Central Access, an aerial lift distributor in Nottingham, UK, acquired by AFI-UpLift.

BAS settled on VGenie’s articulating booms, says Northcott “because it has incredibly low ground pressure,” and has the added advantage of being able to drive at height. The absence of outriggers also reduces overall work time, helpful in freezing weather conditions.

Never mind the Antarctic, says David Smith; weather performance is essential when buying or renting an AWP in Canada, too.

20 / March 2012

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AWPs

By relying on live hydraulics instead of circuit boards he maintains that Snorkel’s lifts “function better” than other machines in -20 degree temperatures. This coupled with lower temperature viscosity oil, hydraulic warmers on all main fluid lines, glow plugs and block heaters for the engine keep the machine warm overnight so it starts up immediately the next morning.

Not to be outdone, Mayville Engineering Corporation (MEC) product support manager Jeff Smith boasts “an arctic package for those machines that are going way up north and working in 30-to 40-below temperatures, notably our Titan-S40.”

At the end of the day, it’s height and weight capacity that most customers are looking for. “Give me higher, give me bigger,” says

“

Northcott, “That’s what they want.” “That’s a fair statement,” agrees Smith. MEC’s Titan boom features a 40-ft., 4,000-lb. capacity lift and a 22- by 7.5-ft. platform. At the same time, Smith offers one last bit of advice: when a rep talks about height make sure he’s talking about platform height, not working height. That goes for both scissor and boom lifts.

David Godkin is a B.C.-based freelance writer and regular contributor to On-Site.

Send comments to editor@on-sitemag.com.

22 / March 2012

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COVER STORY

P3s drive the way to better infrastructu r 24 / March 2012

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COVER STORY

Asset-management models gain favour

u re

By JiM BArnes

A

new era is dawning in construction, says David Bowcott. While it is hard for some to believe, first cost is no longer king and the emphasis is gradually shifting to infrastructure life-cycle costs.

That trend is being driven by public-private partnerships (P3s), but it goes beyond that. “We are not just talking about P3s, but asset management,” explains Bowcott, senior vice president, Aon Reed Stenhouse Inc., Toronto.

The model has various names and definitions: Enterprise Asset Management, Asset Performance Certainty and Integrated Project Delivery, among others. The common thread is that owners increasingly are looking at life-cycle costs for their infrastructure assets instead of price, and allocating risks to the organizations best capable of managing them: construction contractors. Contractors are now the “fulcrum” for risk in infrastructure projects, says Bowcott, not just in construction but also in design, financing, operations and maintenance. “The contractor has become a risk manager,” he explains.

The old system—low-bid, limited-liability projects—incurred a lot of waste: change orders, legal expenses, high loss ratios in surety, inefficiency, penalties, low quality and low residual value of assets. The level of cooperation and communication required for a profitable P3 make that approach to infrastructure largely obsolete.

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COVER STORY

Big impActi Some people mistakenly focus on financing “There is a skill set that has evolved within the as the crux of the P3 phenomenon. “Finance construction companies that are participating in the is an important piece, but if you look at the net present value (NPV), it is not the most P3 market that they did not need before.” important thing. You have to take everything into consideration, including the operations.

Thirty years of operations has a big impact on adhered-to maintenance plan, and there weren’t sufficient maintethe budget for the people in those buildings,” says John Fleming, nance dollars going to maintain those buildings,” explains Cahill. vice-president and general manager, Johnson Controls Inc., with “Delayed maintenance and rehabilitation have affected many corporate headquarters in Glendale, Wisc. types of infrastructure, including health facilities, transportation Most contractors understand the design, build and finance infrastructure and social infrastructure,” says Mario Iacobacci of pieces of the puzzle. Operations and facilities management (FM), the Conference Board of Canada, in a report entitled Dispelling the though, may be less familiar.

Myths, A Pan-Canadian Assessment of Public-Private Partnerships The services included with the FM package tend to vary considfor Infrastructure Investments. erably from one project to the next, depending on unique project “By incorporating the maintenance and rehabilitation work requirements, according to information provided by Katie White, within the P3 agreement, the public sector owner is essentially director, Communications, Partnerships British Columbia in Vanpre-committing future governments to providing the resources couver. “Our main goal is to ensure that the ‘hard FM’ is always (through service payments to the P3 partner) for a specified level part of the contract. Hard FM refers to maintenance of the building of maintenance and rehabilitation work on the facility over the term structure, including walls, roof, mechanical and electrical systems, of the contract,” says Iacobacci. finishes and so on. Inclusion of hard FM ensures that the builder must consider durability and quality in their design,” notes White.

Evolutioni There is a similar approach at Infrastructure Ontario. “We are In the low-bid world, people usually worked in silos to a certain expassing on the maintenance, operating and life-cycle risk of large tent, even when they were partners. The designer created what he components like the HVAC systems. We are not passing on the soft thought would impress the owner and tossed it over the wall to the services,” says Jim Cahill, senior vice-president, Project Finance, contractor, who either tossed it back or figured out how to make it Infrastructure Ontario in Toronto. work… often with a series of change orders. The process was fairly An asset’s residual value at hand-back is a key consideration in opaque to the owner and the financing stakeholders. most FM contracts.

Now, with investors scrutinizing P3 consortia members, their “We expect FM contractors, as part of the private partnership, capabilities and plans; with governments taking a longer-term, asto maintain buildings in a good condition throughout the life of the set-management view of construction; and with consortia partners contract (typically 30 years). Then at the end of their contract, we facing 30-year terms for their risk in a project, transparency has expect them to leave the building in a well-maintained condition,” become vital. says White.

Contractors are evolving in response. “The contractor has to The government mandates the quality of the building at handdeal with all the issues related to construction and also to long-term back. “At the end of 30 years, they operations,” notes Steve Nackan, president, AECON Concessions, have a building that still has a warranty FACT! Toronto. “There is a skill set that has evolved within the construcon it,” explains Fleming. They will send 70% of Canadians tion companies that are participating in the P3 market that they a building inspector in to make sure are open to the did not need before.” that the asset meets the stipulations of private sector Even when you are not providing that service directly, you have to the contract, and any deficiencies will delivering services understand what you are getting into, says Jim Dougan, president, be noted and must be remedied. in partnership with Central and Eastern Canada, PCL Constructors Canada. “We have It’s a strong boost to maintenance the goverment. expert facilities management people on staff so that we fully underactivities. “You look at conventional Source: Canadian stand what that business is about and what the life-cycle issues that procurement of new office buildings Council for Publicwe need to manage are… It’s the whole-life nature of the project. for government use, and quite often Private Partnerships The financing is one component. The life-cycle applications are those buildings look kind of dated afcritical too, in that 30-year timeline. “ ter 20 or 30 years. There wasn’t a well

26 / March 2012

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Get power, traction, precision and speed from a single lever control in the comfort of a spacious isolation-mounted cab. Add best-in-class service and maintenance features, and it’s easy to see why this machine is at the head of its class.

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*For commercial use only. Customer participation subject to credit qualification and approval by CNH Capital America LLC or CNH Capital Canada Ltd. See your Case dealer for details and eligibility requirements. Down payment is required. Offer good through March 31, 2012. Not all customers or applicants may qualify for this rate or term. CNH Capital America LLC or CNH Capital Canada Ltd. standard terms and conditions will apply. This transaction will be unconditionally interest free. Canadian Example: The interest rate will be 0.00% per annum for 36 months. Based on a retail contract date of January 1, 2012, with a suggested retail price on a new Case 1650L of C$301,000.00 customer provides down payment of C$30,100.00 and finances the balance of C$271,000.00 at 0.00% per annum for 36 months. There will be 36 equal monthly installment payments of C$7,527.78 each. The total amount payable will be C$301,000.00 which includes finance charges of $0.00. This offer may not represent actual sales price. Taxes, freight, set-up, delivery, additional options or attachments not included in suggested retail price. Offer subject to change or cancellation without notice. ©2012 CNH America LLC. All rights reserved. Case is a registered trademark of CNH America LLC. www.casece.com

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COVER STORY

“The greater use of the P3 and the AFP delivery models has really made contractors better builders,” he adds.

“You think a lot differently when you have the asset for 30 years. You are going to design it differently; you are going to build it differently; you are going to make sure that the quality is there,” notes Bowcott. “The subtrades are trying to differentiate themselves, too, getting a bit more sophisticated about their products.”

Bowcott suggests that as contractors attempt to get more involved in FM and as offshore contractors enter the Canadian market looking for design/ build partners, “You are going to see consolidation—more mergers and acquisitions, just like you saw in the auto and IT sectors.”

The Sea-to-Sky Highway Improvement Project on Highway 99, connecting West Vancouver, B.C. to Whistler, B.C. was a $600 million P3 project created to improve road safety, reliability and capacity.

Fm shortAgEsi One of the constraints to faster development of the P3 model has been a lack of facilities managers/asset managers, says Nicholas Hann, a board member of the Canadian Council for Public Private Partnerships. The majority of facilities management companies in Canada are still arms of big international contractors, or specialists in facilities management in different sectors.”

In the “European” model of P3, the developer is also the operator.

“When you talk to companies that prefer the European model, some report that it was not by choice but due to not being able to find viable solutions in the marketplace to outsource it,” says Fleming.

There are advantages to taking FM activities in-house. “Construction is a cyclical industry. The experience of other jurisdictions in other countries has been that it can be very attractive to be able to diversify their revenue stream—maybe get a little bit more of a stable, annuity-style revenue stream from these other opportunities that P3s offer,” says Hann.

“In fact, some companies that used to be construction companies in those jurisdictions [outside Canada] have found that the asset-management/facilities management business so attractive that they have actually pretty much exited construction and are now specialist asset managers,” notes Hann.

A small number of specialized FM contractors are very active in the P3 marketplace in Canada. [It] tends to be dominated by a relatively small number of contractors—approximately six—but is growing each year, explains White.

These companies bring a lot of focus to the projects. Johnson Controls, for example, is a large global company with many different offerings in the commercial building market, according to Fleming. It provides systems and services, including facility management services, to many large international companies.

The company is currently managing approximately 1.6 billion sq.

ft. of building space, including straight subcontract work. That experience provides the firm with a lot of data about buildings of all sizes, classifications and ages. “We can use benchmarks and comparable data to understand the life cycle of a building,” explains Fleming.

It’s a valuable knowledge base. HVAC and electronic systems require insight and experience to plan. “If you can manage key data trends, you can probably manage your risk very effectively…

This data gives us a very good idea of how to operate buildings most effectively,” says Fleming.

They can bring in expertise from all over the world to help determine risk factors. “Let’s say a specific type of chiller is under discussion and we happen to have one operating in eastern Europe.

We can draw on the statistical operating data to fully understand how it is going to react over an extended period of time,” he notes.

coordinAtioni The relationship between the design/builder and the FM contractor is a long-term and intimate one. It’s in both parties’ best interests to try to drive the original capital cost and life-cycle costs down.

They have to work together to make sure that happens.

“You need coordination agreements among the parties to capture the expectations. Design/builders have to understand that any changes they make could impact our costs for the next 30 years, which is detrimental to our partnership,” says Fleming. “We sit at the table from day one, when pencil first hits paper on the design of the building. If there is a question on the operational impact of a decision, we are able to look at the options. We don’t just come back with the lowest first-cost solution, but a net present value solution for the term of the contract.”

An example might be the roof. The FM contractor might suggest a higher-grade roof than that proposed by the DB contractor. Where

28 / March 2012

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COVER STORY

The Confederation Bridge in PEI is an excellent example of a successful P3 project.

the cheaper roof might last for 10 years, a better roof might last for 25. That means over the 30-year term of the contract, the cheaper roof might need to be replaced three times, while the better one might need replacing only once, toward the end of the contract. “In addition, energy savings are created which improves and supports the net present value consideration for the better roofing product,” notes Fleming.

There is a common public misperception that somehow services provided by an FM contractor will be inferior to those supplied by in-house staff, according to White. “We find the opposite is usually true, because the contractor’s performance is measured and their compensation is directly impacted by performance.”

“The companies that are managing these assets are doing a good job, and the reason is that the risk profile forces you to do it right the first time,” says Fleming. “That change is really driving us to challenge ourselves and always look for the right solution to help us win the project. The end user also benefits from those savings for the full term by getting a lower cost of occupancy.”

You have to be more focused on best practices across the board—design-procurement best practices, quality assurance best practices, subcontractor-procurement best practices, counter-party risk practices—because those are the metrics they are going to be measured against, according to Bowcott. LEED, BIM and Smart Building technology are becoming standards, because of the longer-term cost reductions they permit.

“This is the construction industry’s answer to sustainability…

All these little pieces… green building technology, BIM, all these things are coming together under this umbrella,” says Bowcott.

One example was a project signed between New Brunswick and Brun-Way Highways Operations Inc. in 2005. The project involves a 28 year and one month contract to operate, maintain and rehabilitate about 275 km of four-lane highway.

The contract required a Structures Management System (SMS) for bridges, overpasses, underpasses, drainage structures and overhead sign trusses. The objective was to ensure that all structures are well maintained to exceed design life expectations and meet obligations for minimum remaining life at the end of the contract.

SNC Lavalin ProFac, a partner in the project, had already developed an asset-management system for buildings. This was adapted to meet the requirements of a highway facility. It included providing a central applications database capable of inputting, storing, assessing, forecasting and reporting on approximately 150 separate highway structures.

“P3” may become an obsolete term, as industrial infrastructure owners in the mining and energy sectors adopt the approach just as government has. Many corporations now have an “asset procurement officer,” with a focus on enterprise asset management, notes Bowcott. “This isn’t just public works. It’s the tip of the iceberg,” he says.

“The liability for an improperly designed, built and/or maintained pipeline or oil platform can be tremendous. Do you want low bidders on that kind of project? Do you want the risks obscured?” asks Bowcott.

“At the end of the day, it’s the right thing to do. It’s the right way to build. If you doubt that, look at the millions of dollars businesses have lost on poorly planned deals.”

ROADS AND BRIDGESI It is not all buildings: road and bridge infrastructure is being handled with virtually the same model. Outstanding examples of Canadian P3s include the Confederation Bridge in PEI and various highways across the country.

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

30 / March 2012

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12-03-13 3:25 PM

Wheel loaders

Winter Wheelin’

BY ANDREW SNOOK

s

pring may be just around the corner, but now is a great time to take note of what cold weather challenges you’ve faced this winter in preparation for next fall.

Contractors don’t typically have an array of mittens, scarves and snowpants to protect their wheel loaders in the colder months, but equipment manufacturers are outfitting their machines with the equivalent—in this case, mid-to-large-sized wheel loaders. One man who knows the importance of cold weather features on his equipment is Ben Waldner.

Waldner has worked with heavy equipment for 48 years at the Vale mining company in Thompson, Man.—a transportation hub of northern Canada—where temperatures regularly fall below -40C and blowing snow creates zero visibility. Over that time, he worked at the Thompson Open Pit moving ore. Waldner has spent 30 years operating loaders in open pit operations and an additional 17 years operating loaders for the transportation department.

Volvo L180G

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Wheel loaders

Ben Waldner has been working with heavy equipment for 48 years for the Vale mining company in Thompson, Man.

Safety is always his top priority.

“Visibility is very, very important. Handling capability and sufficient tire traction are at the top of the list,” says Waldner.

“And at my age, comfort is high on the list, too.”

He adds that tire air sensors for cold weather, manual fast idle engine switches, bucket weight monitors and a differential stress alarm when neutralization is activated are all beneficial when operating in cold weather.

Some of the attachments he says are important for winter operations are quick attach capabilities for a straight edge bucket, all-purpose bucket with teeth, a set of forks and a snow blade.

“I’ve seen a lot of winters from inside the cab of a loader,” he says. “If you know what you’re doing and pay attention, you can achieve safety and good production even in extreme weather conditions.”

There are a lot of different wheel loaders on the market today, with just as many—if not more—cold weather packages available for contractors.

Here are a few of the wheel loaders currently available and some of their winter-friendly options and packages:

1121F—Case ConstruCtion The 1121F-series wheel loader offers contractors a cold weather package that includes: heavy-duty batteries, an airintake grid heater for the engine’s air-induction system, a hydraulic oil cooler bypass, low-temperature hydraulic oil, and the fast-warm Hydraulic Heat Load Valve—a new feature all of Case’s F-Series loaders.

Tim O’Brien, North American marketing manager for heavy line products at Case Construction, says the valve automatically and quickly warms up the hydraulics without the

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WHEEL LOADERS

John Deere 844K II

operator needing to exercise the implements, allowing the machine plug/cord. Other options handy for the cold weather include heated to go to work more quickly, improving productivity. and powered mirrors and a rearview camera that can be set to start Other features helpful for the chillier months are the heated only when the transmission is in reverse. cloth-covered air-suspension seat, defroster and the on-demand It also features the Cat C13 ACERT engine, which meets Tier 4i/ fan with the optional reversing feature, Stage IIIB emissions standard—equipped which prevents it from overcooling in with a diesel oxidation catalyst, diesel cold weather. particulate filter and Cat regeneration “Visibility is very, very The machines also come standard system—and has a net power of 369 hp important. Handling capability with auto-idle warm-up.

(275 kW) at 1,600 rpm, a load-sensing “It has a higher idle that it automatihydraulic system designed to direct flow and sufficient tire traction are cally goes in on the engine to allow it to to implements based on operating conat the top of the list.” warm up and get to work more quickly,” ditions and offers parallel flow to lift, tilt explains O’Brien. and auxiliary hydraulics for simultaneous The machine features advanced seperformance of functions (maximum oplective catalytic reduction (SCR) technology that meets Tier 4i erating pressure of 4,496 psi), a breakout force of 53,548 lb and emissions standards, a net engine power of 320 hp (239 kW), four accommodates buckets ranging from four to 12.2 cubic metres. power modes, a lift capacity (full height) of 32,745 lb, a bucket 844K-II—JOHN DEERE breakout force of 49,960 lb. and a bucket capacity of 4.8 cubic John Chesterman, product marketing manager of four-wheel driver metres. loaders for John Deere says there are various options contractors 980K—CATERPILLAR can choose to make their wheel loader more winter friendly. The The 980K wheel loader has an optional cold start/high-altitude 844K-Series II wheel loader has several cold weather options availpackage that features a fan pump bypass and transmission pump able, including an optional start aid, engine block heater, heated bypass—designed to reduce parasitic load on the engine, additional mirrors to remove ice and snow, a rear camera with a radar object battery capacity for increasing cold cranking and an engine heater detection system and a heated seat.

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Wheel loaders

The wheel loader features a 13.5-litre, PowerTech Plus Tier 3/ Stage 2 emission-certified diesel engine—with an option for an Tier 4i-certified engine—that has a net horsepower of 380 hp (283kW) at 1,600 rpm, a bucket capacity of 5.5-cubic metres (3.46-cubic metre bucket width), higher-capacity axles for increased stability and full-turn tip-load capacity, and a breakout force of 47,549 lbs.

THE COLOR OF

L180G – VoLVo The L180G-series wheel loader offers a wide array of winter-friendly features, including: Automatic Heat Control (AHC) in the cab to maintain pre-set temperatures, timer cab heating, heated seat and mirrors, additional lights for better snow clearing visibility at night and a rear view camera with colour monitor.

It also offers a computer-controlled electric engine air intake pre-heater for assistance with cold temperature start up, engine coolant block heater, diesel fuel heater, front axle 100 per cent differential lock and rear limited slip differential, an Arctic Kit for extremely low temperatures (hoses, accumulators and oil), electro-hydraulic third-function hydraulics to operate winter attachments (snow blades, snow pusher or side-mounted snow wings, etc.) and a front quick attach coupler for changing attachments.

The wheel loader also features a 13-litre, six cylinder, 328 hp (245 kW), Tier 4i-certified turbocharged diesel engine with recirculation particulate filter, load-sensing hydraulics featuring variable-flow, axial piston pumps and a breakout force of 53,122 lb., and accommodates buckets ranging from 4.2 to 7.8 cubic metres.

There are many different wheel loaders out there for contractors to choose from, but some are better than others when it comes to coldweather challenges. Check your options carefully, and make sure your workers aren’t left out in the cold.

terrainability

Three new Genie® Rough Terrain Scissor Lifts offer an upgraded industrial design with better overall performance. The new scissor family has a front active oscillating axle, which provides greater terrainability and power in extreme jobsite conditions. The entire RT69 family has been enhanced with improved jobsite performance. The new design enables all three models to drive and function at full height. Think Blue.

1-800-536-1800 EMAIL WEB

awp.info@terex.com genielift.com

Genie is a registered trademark of Terex South Dakota, Inc. Genie is a Terex Brand © 2012 Terex Corporation.

Looking for a

wheel loader?

Go to

www.on-sitemag.com

36 / March 2012

32-36_WheelLoader.indd 36

12-03-12 12:41 PM

MARCH 2012

BIG PROJECT, BIG REWARDS

In this issue: www.on-sitemag.com Award-winning

37_CosCoverv2.indd 1

infrastructure in St. Catharines | CRMCA | WOC Wrap-up

12-03-12 4:38 PM

CONCRETE NEws

World of Concrete 2012 show experiences boost in attendance

I

Challenge and the Western Star Serious Trucks Challenge; the Concrete Producer’s Challenge; the 10th annual SPEC MIX Bricklayer 500 national bricklaying competition—won by Leif Reints from Neosho, MO., who laid 583 bricks in one hour; SAIA’s Safety Boot Camp and the Masonry Contractors Association of America’s (MSAA) annual conference, International Masonry Skills Challenge and Fastest Trowel on the Block competition and more.

Canadians were well represented at the show, with Ancaster, Ont. native Octavio Miranda winning the CASE Triple Threat Rodeo National Championship; and Ottawa, Ont.-based

ndustry professionals from around the world came out

Impressions Concrete taking home third place in the “Crews

in the tens of thousands for the 2012 World of Concrete

That Rock” contest, designed to honour hardworking crews

(WOC) show, held from January 24 to 27 at the Las

within the construction industry. The company was recognized

Vegas Convention Center in Las Vegas, Nev.

for its aid to families who have been victimized by fraudulent

The WOC show had 52,088 professional registrants, up

almost seven per cent from last year’s 48,554.

There were new products and equipment spread across

contractors.

Concrete Industry Management (CIM) was one the biggest winners on the Las Vegas Strip, raising a record $617,750 for

more than 552,500 sq. ft. of exhibit space, up by 40,000 sq. ft.

the CIM program through its annual unreserved silent and

from 2011. Professionals had the opportunity to network at

live auctions. The live auction had more than 400 on-site and

more than 1,200 indoor and outdoor exhibits and choose from

online bidders and raised $558,000, breaking the auction’s

more than 100 available seminars.

previous record by more than $185,000.

Show director Jackie James said the show floor at WOC 2012 had a “very positive and optimistic buzz.”

The 2013 World of Concrete will take place from February 5 to 8 at the Las Vegas Convention Center in Las Vegas, Nev.

Attendees also had the chance to participate in and observe a wide variety of skills events that took place over the show, including: the Concrete Construction Challenge; the Concrete

For more information about WOC 2012 events,

Producer’s Challenge—featuring the John Deere Operator’s

visit www.worldofconcrete.com

38 / March 2012

38-39_CONnews.indd 38

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12-03-13 2:49 PM

Wheel loaders

Concrete Sustainability Hub promotes growth

A

s the debate surrounding sustainable materials

revolutionize how cement is designed, slash CO2 emissions and

and construction methods continues, industry

enable leadership in future energy-related cement technologies.

experts are trying to figure out how they can ef-

To drive this idea from discovery to technology, MIT scientists

fectively be marketed and applied on the job site.

and engineers will leverage collaborations and industrial

There are several groups working behind the scenes striving

partnerships of the CSH with federal laboratory experts and

to develop the cement and concrete industry for the future.

computational resources.

One such entity is the Concrete Sustainability Hub (CSH),

To further drive discovery towards implementation, new

located at the Massachusetts Institute of Technology (MIT) in

materials/structural solutions for a large range of concrete

Cambridge, MA. Funded by the Portland Cement Association

engineering applications, such as concrete pavements, wall

(PCA) and the Ready Mixed Concrete Research and Education

systems and building envelopes are being explored. The focus

Foundation out of the US, the Cement Association of Canada

of the concrete building technology unit is the development of

is participating under its relationship with PCA.

aggregate models for such systems that are able to translate

The focus of this new Hub is on emerging breakthroughs

progress on the concrete science front (materials properties,

in concrete science and engineering that look for sustainable

reduced environmental footprint) into valuable performance

ways to promote economic growth, social progress and an

criteria that includes structural and life-span performance,

increasingly smaller ecological footprint.

life-cycle analysis and CO2 balance investigations.

This type of research requires a holistic approach, where progress in concrete science seamlessly feeds into innovative

Another research avenue that will look at incorporating improved understanding of the processes and interactions

structural concrete engineering applications, ranging from concrete pavement solutions to wall systems, whose impact on sustainable development are evaluated with advanced environmental-econometric impact studies.

With this in mind, a team of dedicated interdisciplinary faculty from three different schools—MIT, School of Engineering, School of Architecture and Planning and the Sloan School of Management—are participating.

Since concrete is literally the backbone material for infrastructure and housing, it’s important to consider the CO2 footprint of concrete materials. CSH will propose a new way to address this issue, one that is based on transforming the way cement-based materials are designed and characterized by industry for “green” concrete applications.

The basis for this R&D is the first atomistic-scale computational model of this complex material. From this, researchers will predict new structures and improved properties that will

on-sitemag.com / 41

41-42_CRMCA.indd 41

12-03-12 1:00 PM

CRMCA

that determine the environmental impact, is the CSH concrete

C) The increased use of concrete envelope systems and the

econometrics unit. It will dedicate research to assessing the

development of low-carbon structural concrete can have a

impact of concrete science and building technology advances

major impact on lowering the lifecycle carbon emissions of

on energy and climate policies and vice versa. This will

commercial buildings.

involve modelling the demand for, and supply of, energy and

The work on infrastructure and highways will have far

carbon pricing systems, technology assessment, simulation

reaching implications to an asphalt industry already in

and assessment of the impact of energy and climate policies

competitive retreat. Canadian input is prime in all this

on the concrete industry.

development. The program at the CSH is expected to

Several reports have already been issued on topics such as

continue for the next few years.

the lifecycle assessment (LCA) of roads and buildings. The

On Concrete Pavements:

following are some of the conclusions with respect to the LCA

A) Concrete has a much longer life with greater durability

of commercial buildings: A) Added thermal mass in conventional office buildings— due to the use of concrete construction over steel construction—provides annual energy savings in heating, cooling and ventilation (HVAC) that can accumulate to provide carbon savings throughout the lifecycle.

B) Based on ongoing laboratory work at MIT, there are even

leading to a lower life cost.

B) Fuel savings from heavy trucks mean reduced fuel demand, CO2 and GHG emissions.

(Similar finding are available from a fuel-consumption research study from NRC) More detailed information can be found at the CSH website at http://web.mit.edu/cshub/index.html.

greater opportunities to activate the thermal mass of concrete in buildings, such as radiant floor systems and passive technologies, which can further reduce HVAC energy requirements.

Provided by the Canadian Ready-Mixed Concrete Association.

Contact editor@on-sitemag.com.

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12-03-13 3:29 PM

CONCRETE ON-SITE

QEW Niagara Widening wins Infrastructure Award at OCAs

Big project, big rewards

By Andrew snook

I

t’s often said Canada has two

construction techniques, concrete mix

through the City of St. Catharines,

seasons: winter and construc-

design innovation, if concrete products

Ont.—the last portion of the QEW

tion. Although road construction

provided economy to the structure

between Toronto, Ont. and Niagara

and maintenance are nothing

and the level of significance concrete

Falls, Ont. that had not been widened

new during Canada’s summers, one

products played in the functionality of

to six lanes.

particular project stood out in 2011

the project.

and was awarded the 2011 Ontario

At $167 million, the Ministry of

It also included the construction of a median tall wall barrier for approxi-

Concrete Award for Infrastructure—

Transportation of Ontario (MTO) 2007-

mately 9.4 kilometres, the installation

the QEW Niagara Widening.

2027 QEW Niagara Widening was the

of shoulder concrete barriers on both

largest single highway contract ever

sides of the QEW, approximately 5.4

awarded by the MTO.

kilometres of noise walls in residential

Projects submitted for the annual concrete awards were judged based on a variety of criteria, including:

The project involved the widening of

areas, demolishing old bridges and

how extensively concrete products

a 9.4-km section of the QEW Niagara

constructing new overpasses (seven

were used, unique or creative ways of

from four lanes to six lanes from High-

bridges reconstructed or rehabili-

using concrete materials, innovative

way 406 to the Garden City Skyway

tated), a new storm drainage system,

on-sitemag.com / 43

43-47_ConcreteStory.indd 43

12-03-12 3:16 PM

CONCRETE ON-SITE

Lake Street Bridge

retained soil systems (RSS) slopes,

maintaining minimal distraction to

Local 837, Peninsula Construction and

landscaping to address aesthetics, veg-

the oncoming traffic.

Weinmann Electric Ltd.

etation and wildlife as well as a variety of improvements to municipal streets.

The project’s contract was awarded to Oakville, Ont.-based Dufferin

Morrison Hershfield Ltd. was the

The expansion’s construction ran

engineer of record and the project is

from spring 2007 to August 2011, and

owned by the MTO.

had a final cost of approximately $199

Also participating in the project

million, with the majority paid for by

Construction Company, A division of

were: Aluma Systems Inc., Harris

the Province of Ontario—the Govern-

Holcim (Canada) Inc. and the material

Rebar, Highway Construction Inspec-

ment of Canada paid approximately

was supplied by Dufferin Concrete and

tion, Ironworkers Local 736, LIUNA

$42 million of the cost, made possible

Armtec Limited Partnership, headquartered in Guelph, Ont. The concrete used for this project had a specified strength of either 30 or 35 MPa and was used in the various applications, including: noise wall

The expansion’s construction ran from spring 2007 to August 2011, and had a final cost of approximately $199 million.

footings, high mast illumination footings and sign bases, slope paving, cast in place barriers, tall wall medians,

PROJECT TIMELINE The five phases of the Ministry of Transportation of Ontario (MTO) 2007-2027 QEW Niagara Widening project: Stage 1—Project begins in spring 2007. Construction mainly composed of outside temporary widening of the QEW, storm sewer construction, storm water management ponds and grading and berm construction.

Stage 2—QEW medians are removed, some high mast lighting work is done and Lake Street Bridge construction begins. The Lake Street underpass bridge is demolished.

Stage 3—QEW north side widening work begins, including the widening of the Welland and Geneva bridges. QEW south side noise barrier construction begins and the QEW median tall wall and high mast lighting from Seventh Street to Martindale Road are completed.

bridge decks, substructures, parapet walls, culverts, approach slabs, bridge structures and concrete overlays.

Dufferin Concrete supplied all the concrete for the project with its plants in Beamsville, Ont. and Niagara Falls,

Stage 4—Mainly composed of the widening of Niagara-bound lanes. The Geneva Street Bridge and the Welland Avenue Bridge are demolished. Installation of noise barrier walls continues as does work on storm water management ponds.

Construction of the Lake Street Bridge is completed. The west half of Martindale Bridge and the south sides of the Welland and Geneva bridges are built.

Ont. acting as the primary facilities— both locations were about a 20-minute drive to the project.

Representatives from Dufferin said the biggest challenges to the project

Stage 5—Construction of the QEW median tall wall, high mast lighting, Ontario Street structure rehab and deck replacement, east half of the Martindale Bridge, Niagara Street Bridge rehab and deck replacement, landscaping and surface course paving are completed.

were keeping the lanes open and

44 / March 2012

43-47_ConcreteStory.indd 44

12-03-12 3:16 PM

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CONCRETE ON-SITE ONSITE

Left: Martindale Bridge

Right: geneva Street intersection

“From a local perspective, the widening of the lanes has

through the $600-million Border Infrastructure Fund.

been very well received by residents and from the feedback

When the project was completed, St. Catharines MP Rick Dykstra stated that the widening of the QEW would improve

I’ve gotten, it was something everyone has been pleased

the quality of life for St. Catharines’ families living in that

with,” he said. “The widening has also been good for local

corridor by reducing commute times and creating jobs.

industry, as ‘just in time’ deliveries are finally getting in on time, meaning that there are fewer holdups with production,

More than six months have passed since then, and Dykstra

which is good for jobs and the local economy. Tourism has

says all those things are ringing true.

also benefited now that those bottleneck traffic jams heading into the Niagara region have disappeared.”

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2/27/12 12:31 PM 12-03-12 3:16 PM

SOFTWARE

By Jacob Stoller

A

How to Become a Social Media Superstar

s On-Site Editor Corinne Lynds explained in the February issue, social media can provide a variety of benefits to construction companies. Practices such as recruiting with LinkedIn, engaging employees through an internal Facebook page, or attracting traffic to the corporate website with blogs and social media brand pages are well-established.

Using social media to find and engage people with common interests is less clearly defined. To get a better grip on this topic, I spoke with social media guru and author Alan K’necht, who I met face-toface in January at Socialize Toronto, a Mediabistro event.

“When done right, using social media is a great way to connect and receive and give valuable information within your industry,” says K’necht.

K’necht often begins his public presentations by observing that popular sites such as Facebook and Twitter are really extensions of earlier social media like email, the telephone, and yes, even the printing press.

In a similar vein, the benefits of social media are no different than the well-known benefits of getting to know more people.

The key to connecting with the right people, says K’necht, is participating in the conversations that these people are already engaged in. The dynamics here are similar to cocktail party etiquette—the topic of conversation is the glue that draws people together, and that needs to be respected. You don’t break into a group talking about hockey and try to start a conversation about gardening.

Experts seem to agree that LinkedIn and Twitter are the most popular social media tools for the construction industry. LinkedIn

provides a ready-made platform in the thousands of active discussion groups around a variety of construction topics such as: construction management, structural engineering, construction news, construction materials, construction equipment, green construction, construction training and construction software.

The bad news is that many of these groups are devoid of conversation—instead, the majority of participants use them exclusively to pitch their products and services.

On the other hand, I did find some good conversations on construction software (pros and cons), green construction and current events.

A good way to find real conversations is through influencers who regularly engage in dialogue and attract an audience. “These are people who heavily use social media for disseminating information on the industry, or participating in conversations,” explains K’necht.

A handy tool for finding influencers is Klout.com, which tracks people’s social media activity, and rates them based on the number of people they engage on sites like Facebook and Twitter. K’necht suggests the following Klout / Twitter strategy: 1. Sign up at Klout.com (it’s free) and do a search on a topic of interest, such as construction, architecture or engineering.

Klout will identify influencers in that area.

2. Click on the Twitter icon and identify the Twitter conversations that the influencer is involved in. These are identified by hashtags, which are keywords preceded by the # sign (for example, #construction, or #contractor).

3. Sign up for Twitter if you haven’t already

(yes, it’s free), and follow and join the conversations of interest.

4. Continue the process. Conversations will uncover more influencers, and vice versa.

Just like live networkers, online networkers succeed through sustained effort.

There are some unwritten rules that should be followed when engaging online.

Rather than look for an opening to pitch your product or particular interest, actively look for opportunities to provide information that the group has demonstrated an interest in. Essentially, you should consider the value of the information you are able to provide. “You get back what you put in,” says K’necht.

It’s important, therefore, to understand what the group is all about before making comments. “I generally ease my way into the conversation,” says K’necht. “If you’re hit and run, the group will not respond.”

You will know when you are engaging people when they start answering and showing approval for your tweets or posts.

This is where the magic of social networking really begins—those who approve of you signal that approval to their followers, and this can have a snowball effect.

Once you have created genuine interest in your contributions, you will have earned the right to talk about what you do, because people will genuinely want to know. That interest is the beginning of your career as a social media superstar.

Jacob Stoller is a principal of Toronto based Consultancy Stoller Stragies. Send comments to editor@on-sitemag.com

48 / March 2012

48_Software.indd 48

12-03-13 3:31 PM

March 2012

STOP Don't do anything else until you've renewed your FREE subscription to On-Site!

Simply fax this form to

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Please fill in the following and mail today!

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49_subpage.indd 49

12-03-13 10:47 AM

RISK

By David Bowcott

A

Strike a balance

s more and more contractors get exposed to project finance negotiations and are asked to provide performance security in the event of their non-performance, the dialogue about the nature of that security is increasing. A delicate balance needs to be struck between lenders and contractors — the security has to satisfy the lenders need for responsiveness in the event of a contractor non-performance event, and at the same time not overly constrain the contractor’s ability to operate its business.

Traditionally, construction contracts have been secured by the following solutions: 1. Parental Company Guarantees (PCGs) — Often the entity performing the construction work is not the entity with all of the net worth, so the owner (equity) and debt secure their position via a guarantee from the company with the deeper pockets.

2. Surety Bonds — In North America the traditional performance bond is used to secure contractor performance whereby the contractor has to be in default in the eyes of the surety company. Surety bonds in Canada are often to the value of 50 per cent of the contract value.

3. Letters of Credit — These instruments are on-demand and provide the equity and debt immediate access to cash and are often in amounts between five and 15 per cent of the contract value.

4. Cash Reserves — Cash set aside at the start of the project or funded during the execution of the project. The funds can be used to mitigate the losses suffered due to contractor non-performance during construction and into the operations period.

Of late, there has been a movement

towards increased use of PCGs and letters of credit. This has been especially true in the public sector asset procurement arena.

As the public sector experiments more with delivery models that use the private sectors’ funds, the use of traditional surety bonds has decreased. In order to address migration away from insurance-based performance security solutions, the insurance industry is re-tooling their offerings.

The beneficiaries to the policies now get a quicker response to the non-performance of the contractor. Some of the surety offerings, specifically introduced in the later part of 2011, have tremendous potential to reduce or even supplant the letter of credit as a source of performance security.

So why would an owner or lender be interested in trading what appears to be a very liquid instrument for a new solution that offers similar responsiveness, delivered by the insurance industry? Well, there are a number of reasons that these new solutions should be embraced: 1. Responsiveness — These solutions can offer payment with no/or limited insurer scrutiny within five to 30 days.

2. Contractor Friendly — Allow the contractor a greater degree of financial flexibility.

3. Smart Security — Anybody can get a letter of credit. If I have $10 million in cash I can obtain a $10 million letter of credit. Does this mean I’m a good contractor? Absolutely not, it just means I have cash. Do the insurance offerings have smarts? Absolutely. The smarts from the insurance-based security can benefit owners and lenders in two distinct ways: A) Prequalification — to qualify for these solutions the contractor has to go through a

Of late, there has been a movement towards increased use of PCGs and letters of credit. This has been especially true in the public sector asset procurement arena.

rigorous underwriting of its financial strength and operational practices.

B) Mitigation Knowledge — when a nonperformance event occurs some of these solutions come with built-in knowledge of how to get the job back on track.

4. Quantum — the letter of credit is usually in amounts of five to 15 per cent of the contract. Sure the PCG helps, but how responsive will a PCG be if the contractor is defaulting due to insolvency issues? With the suite of performance security offered by the insurance sector, you can get well over 50 per cent of the contract value in place to secure your position.

5. Insurance Capital Base — As the world watches the sovereign risk crisis unfold in Europe, we get more information as to how connected the world’s banking industry is.

As these countries are being downgraded, so too are the banks associated with them.

This means the credit quality of those institutions are coming into question. Well, the insurance sector is not as directly impacted from these events, and thus, a case could be made that insurance security is more stable then bank originated security.

These are just a few reasons why the project finance community should take a closer look at the new performance security offerings. Educate yourself on these tools as soon as you can. It most definitely could be the difference between winning and losing a job.

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

50 / March 2012

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ADVERTISERS’ INDEX & WEBSITES AdriAn Steel ........... www.adriansteel.com ........................... 13 BoBcAt ..................... www.bobcat.com/value1 ...................... 15 cAnAdiAn WeStern BAnk ......................... www.theworkingbank.ca....................... 21 cASe.......................... www.casece.com ................................. 27 cAterpillAr ............. www.cat.com/tier4epp ........................... 2 chevrolet ............... www.chevrolet.ca ................................ 29 dooSAn infrAcore .. www.DoosanEquipment.com/MARK ...... 40 dooSAn portABle poWer ...................... www.DoosanPortablePower.com ............ 23 expo GrAndS trAvAux .................... www.expograndstravaux.com ................ 51 freiGhtliner........... www.FreightlinerTrucks.com/WorkSmart .. 4 Genie ........................ www.genielift.com ............................... 36 GrAhAm conStruction ......... www.graham.ca .................................. 22 hcSS ......................... www.hcss.com/apps ............................ 46 John deere .............. www.JohnDeere.com/dozer ................... 56 kuBotA ce ................ www.kubota.ca ................................... 35 mAck......................... www.mackgranite.com ......................... 39 mAnitou ................... www.manitou.com ............................... 17 mAxWell SyStemS ... www.maxwellsystems.com/advantage ...... 7 mercedeS Benz ....... www.thesprinter.ca .............................. 55 miller fAll protection/ honeyWell .............. www.millersmartsolutions.com ............. 47 neW hollAnd ........... www.newholland.com .......................... 10 StronGco................. www.strongco.com .............................. 53 topcon ..................... www.topconpositioning.com/3DMC2 ..... 31

SPECIAL onLInE offEr!!!

Pre-Register online for just $5.00 (a $10 Savings!)* *This offer is valid online only until April 1, 2012

Show Hours Friday, April 13

10am - 6pm Saturday, April 14 9am - 5pm

vieWpoint conStruction SoftWAre ................. www.viewpointcs.com .......................... 12 WAttS ....................... www.wattscanada.ca ........................... 45

ThE ADVERTISERS’ INDEX IS pRoVIDED AS A free SERVIcE To ouR ADVERTISERS. on-sitemag.com / 51

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FUNNY PHOTO

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

(Comparable alternative model may be awarded.)

DEADLINE FOR ENTRIES IS

April 10, 2012

d t hey “I’m gla y b p ay me r.” u o h e th

THIS MONTH’s winner is: Stephen Walker, Nepean, ON

SEND YOUR ENTRY TO:

Got a Funny Photo?

Send it in so our readers can exercise their senses of humour!

mail

80 Valleybrook Drive, Toronto, ON M3B 2S9

fax

(416) 510-5140

e-mail

editor@on-sitemag.com

A k

W Tru for

Le

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

EWS GET MORE N SITE H ONT I W E N I L N O

Vo

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173

All the muscle. All the knowledge. LET’S WORK. Wherever you go. Whatever you do. Strongco Equipment is there with you. Strong, dependable equipment.

Trusted industry experience. Reliable parts and service support. With locations across Canada and solutions for everything from construction and road building to mining, forestry, utilities and more, we’re ready.

Let’s use all our strengths to take on more. Contact your nearest Strongco location today.

www.strongco.com

ALBERTA

ATLANTIC

ONTARIO

Calgary 403-216-1010 Edmonton 780-464-1909 Grande Prairie 780-513-3700 Red Deer 403-346-3473

Dartmouth 902-468-5010 Moncton 506-857-8425 Newfoundland 709-747-4026

Grimsby Orillia 905-643-4255 705-330-0004 Kitchener Ottawa (Stittsville) 519-744-3518 613-836-6633 London (Lambeth) Sudbury (Lively) 519-652-3234 705-692-5801 Mississauga Thunder Bay 905-670-5100 807-475-3052

QUEBEC Baie-Comeau 418-296-3091 Boucherville 450-449-4666 Chicoutimi 418-690-1724

Laval 450-686-8911 Ste-Foy 418-653-2801 Val-d’Or 819-824-2791

Volvo Construction Equipment 52-53_funnyPhoto.indd 53 Site Magazine_ Excavator • Size: 8.125”W x 10.875”H Bleed 173-805 Strongco_On

12-03-09 5:27 PM

CONTRACTORS & THE LAW

By Chris Eagles & Trish Morrison

C

Resolve disputes out of court

onstruction disputes have increased dramatically in number and complexity over the past few years. As a result of the high cost and delay commonly associated with traditional litigation, and with recent mandatory requirements to participate in a dispute resolution process, many parties are turning to arbitration or mediation to resolve construction disputes.

Although arbitration and mediation are both considered “alternate dispute resolution” processes, there are significant differences between the two. Arbitration is more commonly used when the parties believe there is no likelihood of negotiating a settlement or retaining a business relationship, and is appropriate if the parties need to reach a final decision. Mediation is appropriate when the parties are prepared to compromise and are motivated to reach a timely and mutually satisfactory agreement with the help of a neutral person.

Time CommiTmenT Mediation sessions are typically concluded within a few days. For more complex cases, mediation briefs may be exchanged and given to the mediator in advance of the mediation session. By comparison, an arbitration will often involve considerable time for discovery of documents and may include limited examination for discovery of witnesses. The arbitration hearing often lasts much longer than a mediation.

CosT Mediation can be much more cost effective than litigation or arbitration, if it results in a resolution. The three main cost

components of mediation include internal business costs for preparation and attendance, the cost of lawyers or other advisors to prepare and attend, and the cost of the mediator and the session room.

The arbitration process is more similar to litigation and often involves a longer process, presentation of evidence, possible discoveries, legal submissions and expert reports.

ConTrol In a mediation, the parties maintain control over how the dispute will be resolved. A mediator may assist the parties to reach a settlement, but has no authority to impose

Mediation can be much more cost effective than litigation or arbitration, if it results in a resolution. a settlement or to tell the parties how the dispute must be resolved.

The parties must agree on the final outcome. In an arbitration, the final outcome is based upon the decision of the arbitrator and the parties are bound by it.

The biggest advantage of mediation over arbitration is that it avoids the adversarial process and, therefore, increases the likelihood of preserving the business relationship between the parties. Mediation allows discussions to take place in a neutral environment, with an objective mediator, and often accomplishes more in a single session than months of meetings and exchanging correspondence.

Mediation focuses on the business

interests of the parties rather than on their legal positions. By not dwelling on the different views of how the dispute arose, the parties are able to concentrate on creating a solution to their dispute. The mediator assists the parties in identifying the strengths and weaknesses of their case and discovers the underlying interests that are at the heart of the dispute.

To help ensure a successful mediation, keep the following in mind: • Each party should be represented by someone having settlement authority to allow a final settlement to be reached.

• Plan to spend a concentrated period of time in the mediation and do not plan on conducting other business during or between sessions.

• Come to the table with an open mind.

• Have an understanding of the issues.

• Ensure there is sufficient information.

Exchange mediation submissions, documents and relevant information in advance.

• Be prepared to address technical issues.

Have an expert available to discuss any reports with the mediator and other party.

• Discuss internally the concept of settlement and possible options beforehand.

• Resist setting a “bottom line” or “top dollar” settlement number until the mediator has discussed the case with you.

• Determine objective and rational bases for your settlement proposals.

• Consider the cost of avoiding future litigation or arbitration.

• Leave extra time in case sessions are constructive but more time is needed to reach a settlement.

Provided there is a common motivation to settle the dispute on a reasonable and timely basis, there is little to lose and everything to gain by attempting mediation.

This column is provided for general information only and may not be relied upon as legal advice. Send comments to editor@on-sitemag.com.

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

The Mercedes-Benz Sprinter. Starting from $42,900.* thesprinter.ca ©2012 Mercedes-Benz Canada Inc. *Mercedes-Benz Sprinter 2500 144" WB base national MSRP $42,900, all-in pricing up to $46,516.25 dependent on region. National MSRP pricing is shown for informational purposes only. Price does not include taxes, levies, fees, and delivery charges. Price does not apply in provinces with total pricing requirements. Please contact your local dealership directly for total price applicable in those provinces. Price subject to change. Dealer may sell for less. 1Based on analysis of Canadian market for 2500 and 3500 series vans performed in March 2011 by Vincentric LLC. $6,400 savings claim based on comparison of 2011 GMC Savana Cargo 2500 and 2011 Mercedes-Benz Sprinter 2500 144" WB. Average savings across all models analyzed is $6,900. Visit thesprinter.ca for more details.

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T:10.75”

S:10”

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

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