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2017 INFRASTRUCTURE REPORT PG. 18
PLAYING FAVOURITES COMPACT EQUIPMENT
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PRODUCTIVITY GAINS
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BACK FROM THE DEAD PG. 44
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VOLUME 62, NO.4/ AUGUST 2017
COVER STORY 18 2017 Infrastructure Report Infrastructure spending promised in the 2016 and 2017 budgets is slowly making its way down the proverbial pipe. Industry experts recommend patience.
DEPARTMENTS 7 Comment
18
5 ways to modernize skills training
8 Contributors
Meet our contributors for this issue
10 News
Industry news
16 Construction Stats The latest stats on construction activity and employment
COLUMNS 40 Software
Can construction be automated?
42 Risk
BIM drives productivity
44 Contractors and the Law
Back from the dead
30
35
IN THIS ISSUE 29 Concrete On-Site
24 Contractors favourite compact machines On-Site polls OEMs to find out what the top-selling compact machines are, and why contractors love them.
43 Index of Advertisers
35
Good for the environment and the bottom line Eco-friendly and easier on the bottom line – CO2-infused concrete blocks are earning high praise from the construction sector. on-sitemag.com / 5
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COMMENT
5 ways to modernize skills training
Get the latest construction news! Follow us on Twitter @OnSiteMag
How do we prepare the next generation for construction jobs that don’t even exist yet? That’s a tough one. According to a recent report entitled An Apprenticeship Skills Agenda, we had better figure it out soon – 65 per cent of today’s elementary school children will go on to careers that haven’t even been dreamed up yet. The report, calls for bold, innovative and flexible skills and apprenticeship training to keep pace with advancing technology. “The world is changing so fast that today’s conventional approaches to apprenticeship training are dated and no longer apply,” explains Joe Vaccaro, chair of the Ontario Skilled Trades Alliance. “More jobs require modern, multi-skilled tradespeople who can multi-task and adjust to our economy changes. Ontario can be a leader in skilling up the next generation, but only if it’s willing to try new ways of training.” Vaccaro’s comments are in reference to Ontario, but if you’re sitting in B.C. or Newfoundland right now, don’t kid yourself, this affects you too. One of the biggest problems right now, is less than half of all apprentices actually complete their training. That tells us something about current training methods – they aren’t working. Thanks to feedback from construction leaders, there are five recommendations to modernizing skills training that were born from this study: 1) F lexible, competency based certification that follows the precedent set by Microsoft in 2014, when it certified a five-year-old who passed the exam to become the world’s youngest computer specialist.
2) E nding the focus on time, ratios, compulsory and voluntary certification, a system that’s too rigid and confusing for many apprentices to navigate and complete. 3) Students dedicate 20 hours of community work to mastering trades and practical skills. 4) Life long learning requirement for tradespeople to keep skills current. 5) Creative online learning and 24-hour assessment to appeal to a tech savvy generation and get skilled trades in the workforce sooner. Despite best efforts, the skills gap is widening. Up to 41 per cent of Ontario employers would hire more people, if they had the right skills. It makes sense to ditch archaic thinking surrounding the old notion of “paying your dues,” but can the next generation really get up to speed that fast? Could a five-year-old operate a crane? And what role will safety play in our modernized training? Obviously there are still a lot of unanswered questions about the future of skills development, but I would love to hear your thoughts on what needs to be done. Send your emails to editor@on-sitemag.com
Corinne Lynds / Editor CLynds@on-sitemag.com
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CONTRIBUTORS
MEET OUR CONTRIBUTORS FOR THIS ISSUE JACOB STOLLER / Principal, StollerStrategies On construction automation: “Advances in information systems have been cited as a catalyst for higher productivity in many sectors. In manufacturing, the wide proliferation of CAD/CAM systems opened the door to automated manufacturing from 3D models with CNC machines and robotics. Now that BIM systems have made 3D models readily available in construction, will machines soon be able to fabricate buildings and large-scale infrastructure?”
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 MEDIA DESIGNER | Lisa Zambri lzambri@annexbizmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@on-sitemag.com ACCOUNT COORDINATOR | Cheryl Fisher (416) 510-5194 CFisher@annexbizmedia.com CIRCULATION MANAGER | Urszula Grzyb 416-442-5600 x3537 ugrzyb@annexbizmedia.com Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com
DIRK LAUDAN / Borden Ladner Gervais LLP On lien bond surety: “Effectively, the contractor came back from the dead to defend the lien claim, at the instigation of the bonding company.”
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DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On project finance: “For years, the construction industry has been hounded by economists, consultants, and academia, for not being as productive as other key industries... We are starting to see construction productivity trending upwards, and that is being driven by BIM.”
Circulation email: apotal@annexbizmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 SUBSCRIPTION RATES Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Occasionally, On-Site will mail information on behalf of industry-related groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer privacy@annexbizmedia.com Tel: 800-668-2374 Content copyright ©2017 by Annex Publishing & Printing Inc may not be reprinted without permission.
NATE HENDLEY / Freelance Writer & Author On Carboclave blocks: “For decades, researchers have talked about using captured CO2 to enhance the curing process to make better concrete. The Carboclave block is one of the first commercially viable products to successfully use this procedure.”
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.
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INDUSTRY NEWS
Funding will improve capacity of Peace River Bridge
INDUSTRY>NEWS New training facility supports safe rebuilding efforts in Fort McMurray The Alberta Construction Safety Association (ACSA) celebrated the opening of a brand new training facility in Fort McMurray, with honoured guest Mayor Melissa Blake, and hundreds of construction industry representatives. ACSA chief operations officer, Tammy Hawkins, said the Association is looking forward to continuing to grow its partnerships with company owners and workers of the Wood Buffalo region during this important period of construction. Its priority continues to be in supporting the strongest safety performance and upholding company and worker certifications. “We are increasing our presence in the Wood Buffalo region, by providing additional safety training services and resources for the local construction community at this brand new training space in Fort McMurray,” said Hawkins. “We are also proud to provide a
unique resource to the community through the work of our Wood Buffalo Regional Safety Committee (WBRSC), who are a volunteer led committee of safety representatives from across the region’s construction industry. The WBRSC meets regularly to identify regional and trade-specific health & safety issues and best practices, engaging regularly with the community. The committee represents a passionate, committed, and hard-working group of HSE professionals.” The opening of the new ACSA facility comes at a good time. 2,457 (8 per cent) of the 30,713 private dwellings were destroyed in last year’s fire. According to the Canadian Mortgage and Housing Corporation, 785 housing starts are recorded in Ft. McMurray since the beginning of the year, demonstrating the rebuild is well and truly underway, making available safety training an important priority in the construction industry.
AECOM’s Douglas Allingham named Chair of U of Ontario’s Board The University of Ontario Institute of Technology in Oshawa, Ont. has announced that Douglas Allingham, P.Eng., an executive vice president with AECOM has been appointed Chair of the University’s Board of Governors for the 2017-2018 academic year. Based in Whitby, Ont., Allingham joined the University’s Board in 2014 and will be replacing Adele Imrie as chair on September 1, 2017. “I am excited to take on this new role at the University of Ontario Institute of Technology,” said Allingham in a release from the University. “As a Board Member, I have witnessed the university expand its undergraduate and graduate academic offerings, research capacity and collaborations with industry and community. I sincerely thank outgoing chair Adele Imrie for her contributions and commitment over the past year, and I look forward to working with the other board members to make the university even more successful.” SOURCE Canadian Consulting Engineer
Government funding will improve the capacity and flow of traffic over the Peace River by constructing a second bridge to accommodate westbound traffic. Once completed, the existing bridge will be used solely for eastbound traffic. Funding will also go towards constructing an under-slung pedestrian bridge, which will allow pedestrians to cross over the Peace River while being separated from highway traffic and be partially sheltered from the elements and highway traffic noise. The Government of Canada is providing more than $74 million and the Government of Alberta is investing approximately $88 million. The project has a combined total estimated cost of more than $162 million. Highways and bridges form the backbone of the country’s transportation network and support national, provincial and regional economic activity. This investment will reduce travel delays as well as increase passenger and pedestrian safety. “In 2018 we will celebrate the 50th Anniversary of the opening of the Peace River Bridge. As the economy of the Town and region have grown, transportation has become a critical component of the area’s continued growth. We welcome the twinning of the bridge and the opportunities it represents, not only in terms of construction jobs but also its role as an essential link for the area. The new bridge will increase not only emergency access for all residents but also provide a vital transportation corridor to facilitate development in the north,” said Tom Tarpey, mayor of Peace River.
Funding will improve capacity of Peace River Bridge.
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INDUSTRY NEWS RFP coming soon for rehabilitation of Supreme Court of Canada Public Services and Procurement Canada (PSPC) is committed to preserving its heritage assets. In doing so, PSPC is protecting the health and safety of occupants and visitors, greening its buildings and creating jobs and economic growth. The department is moving forward with the rehabilitation of the iconic Supreme Court of Canada Building, a heritage asset built from 1938 to 1940. The building, which houses the Supreme Court of Canada, its judges and staff, as well as two courtrooms and chambers for the Federal Court of Appeal and the Federal Court, requires significant and extensive rehabilitation work. This work is expected to begin in 2023 and be completed in 2028. “Through an investment in our heritage assets, Public Services and Procurement Canada is ensuring that Canada’s highest court and the federal courts remain functional for generations to come...” said Steven MacKinnon, Parliamentary Secretary to the Minister of Public Services and Procurement. The Supreme Court of Canada Building will be vacated while it is restored, and occupants will use the West Memorial Building during the rehabilitation work. A RPF to select a planning and design firm will be launched in summer 2017. A tender has already been launched for preliminary work for the West Memorial Building.
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SNC-Lavalin creates new infrastructure investment vehicle SNC-Lavalin has launched a new infrastructure investment vehicle, SNC-Lavalin Infrastructure Partners LP (“the Partnership”), to efficiently redeploy capital back into development opportunities. This vehicle will hold SNC-Lavalin’s interests in a selection of its mature Canadian infrastructure assets and will allow the company to monetize 80 per cent of these infrastructure interests while retaining a 20 per cent ownership, as well as the long-term management of these assets. In addition, SNC-Lavalin has entered into a strategic agreement with a Canadian subsidiary of BBGI SICAV S.A. (LSE: BBGI), which will purchase 80 per cent of the limited partnership units in the Partnership for approximately $208 million for the initial five transferred assets, while a subsidiary of SNC-Lavalin will hold the remaining 20 per cent. “This is an important milestone for SNC-Lavalin Capital,” said Chantal Sorel, managing director, SNC-Lavalin Capital. “This new venture demonstrates SNC-Lavalin’s full life-cycle expertise and ability to create significant value with our long-term strategic customer focus. It reflects our active approach to managing our asset portfolio in a way that optimizes shareholder returns in keeping with the company’s strategic objectives. In addition, it sets the foundation to create new project financing vehicles that will support the development of our robust pipeline of projects.” The Partnership will initially hold a portfolio comprised of SNC-Lavalin’s interests in the following five assets: the William R. Bennett Bridge (Kelowna, BC), the Canada Line (Vancouver, BC), the Southeast Stoney Trail (Calgary, AB), the Restigouche Hospital Centre (Campbellton, NB) and the MUHC Glen site (Montreal, QC). SNC-Lavalin will act as the General Partner and as the Manager of the Partnership, and as such, it will continue to be the counterparty to the various stakeholders and partners in the transferred assets.
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INDUSTRY NEWS City celebrates Mosaic Stadium grand opening A journey that started in 2011, is now complete. The City of Regina’s iconic Mosaic Stadium is officially open. “Mosaic Stadium is an iconic venue, the best stadium in Canada and one of the best in North America,” Mayor Michael Fougere said at the official opening of the multi-purpose facility. “But it will also serve as a venue for people to gather and celebrate our great community for generations to come. This opportunity would not have been possible without the strong partnerships between the City, the Province, and the Roughriders, and the recognition that this is a catalyst for the growth and transformation of our city.” The stadium project is the first of three phases of the City of Regina’s Revitalization Initiative, which also includes the Railyard Renewal Project and Taylor Field Neighbourhood. The design and construction details of the stadium were revealed in May 2014. Within a month, PCL Construction began building.
MOSAIC STADIUM OVERVIEW Location: 1734 Elphinstone Street, Regina, Sask. Owner: City of Regina Operator: Evraz Place Capacity: 33,000 expandable to 40,000 for major events
Owned by the City of Regina and operated by Evraz Place, officials declared Mosaic Stadium to be “substantially complete” on August 31, 2016. One month later, on October 1, the first of two test events took place when the hometown University of Regina Rams played host to their provincial rivals the University of Saskatchewan Huskies in a match designed to put the facility through its paces. The second test was on May 27, when the Regina Rocks Mosaic Stadium concert – headlined by Bryan Adams – allowed organizers a chance to test the building and operational plans, including food and beverage service. Three weeks ago, the Roughriders hosted a pre-season game in the final tune-up before their home opener on July 1 against the Winnipeg Blue Bombers as part of the City’s Canada 150 celebrations. “Our government is proud to have been a part of this historic project,” Premier of Saskatchewan Brad Wall said. “New Mosaic Stadium sets the standard for sports venues in Canada. From the comfortable seats to the spacious concourses to the concessions, everything about the stadium is first class. The new Mosaic is a worthy home for the Saskatchewan Roughriders and will serve as a tremendous setting for university and amateur sports and entertainment events. Congratulations to everyone involved in bringing this project home.” With a standard capacity of 33,000 – expandable to 40,000 spectators for major events – the stadium provides a modern fan experience with a spectator roof and open south end zone connecting the stadium to the community. Its unique features include a sunken lower bowl, individual seating, and a 360 degree main concourse. Other amenities include an increase and variety in food choices from local vendors and 37 washrooms, including gender neutral and family friendly facilities.
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CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry BUILDING PERMITS UP IN MAY
INVESTMENT IN NON-RESIDENTIAL BUILDING CONSTRUCTION IS UP Investment in non-residential building construction totalled $12.4 billion in the second quarter, up 0.3 per cent from the previous quarter. This increase follows three consecutive declines. Nationally, the gain was the result of an increase in spending on the construction of industrial and commercial buildings. The institutional component declined for a second consecutive quarter. Overall, six provinces posted increases in the second quarter, with Ontario reporting the largest upturn, followed by British Columbia and New Brunswick.
The value of building permits issued for non-residential structures rose 5.6 per cent in May to $2.7 billion, marking a third consecutive monthly increase. Alberta and New Brunswick led the five provinces that posted gains in the non-residential sector in May. The commercial component rose 12.9 per cent in May to $1.5 billion, as increases were registered across several building categories, led by retail and wholesale construction intentions. Every province except Nova Scotia and Alberta reported gains in the value of commercial building permits. The industrial component rose for a third consecutive month, up 9.8 per cent in May to $545 million. This increase was mainly due to higher construction intentions for maintenance buildings in Ontario. In contrast, the value of building permits issued for institutional structures fell 9.1 per cent to $719 million in May. This followed notable construction intentions in April for government administration buildings and medical facilities. SOURCE: Statistics Canada
SOURCE: Statistics Canada
CONSTRUCTION UNION WAGE RATE INDEX, MAY 2017 The Construction Union Wage Rate Index (including supplements) for Canada rose by 0.1 per cent in May compared with the previous month. The composite index increased 0.1 per cent in the 12 months to May. Of the 22 metropolitan areas covered, Halifax (+2.1 per cent) and Saint John (+0.2 per cent) posted the largest increases in the composite index compared with the previous month. Among the 16 trades covered, the largest monthly increase was observed in the bricklayer trade (0.6 per cent). The crane operator, cement finisher, electrician, reinforcing steel erector, structural steel erector, sheet metal worker, and heavy equipment operator trades all reported slight increases (+0.1 per cent) in May. SOURCE: Statistics Canada
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INFRASTRUCTURE REPORT
More trickle,
than flow
Government spending on infrastructure is slowly making its way down the pipe BY SAUL CHERNOS
R
ome wasn’t built in a day. A trite expression, perhaps, but one which might comfort builders and other construction sector service and material providers wondering when infrastructure money the federal Liberal government promised in its two most recent budgets might flow meaningfully down the proverbial pipe. The 2016 budget announced more than $120 billion in infrastructure investments over 10 years. This included $60 billion in new funding for public transit, green and social infrastructure. The 2017 budget upped the federal commitment to more than $180 billion and realigned this over 12 years. Under the previous Conservative government, Build Canada poured money into an array of projects. The intent was to stimulate the economy, and the projects were largely ‘shovel-ready’ sewers, roads and bridges. However, while economic conditions have improved somewhat, the Liberal government’s Investing in Canada Plan seems more gradually paced rather than opening any kind of floodgate. The Liberal plan was split into two phases. The first,
announced in Budget 2016, included investments of more than $11 billion in public transit, green, and social infrastructure. The delivery of funds was a shared responsibility across multiple departments, with Infrastructure Canada the lead department for funding that focused on the rehabilitation and recapitalization of existing infrastructure such as sewer, water, and public transit projects. Michael Atkinson, president of the Canadian Construction Association, says the new infrastructure program seems a little slower out the gate than anticipated. Expressing confidence that the train remains on track even if moving less quickly than industry might want. Atkinson acknowledges a process whereby often-complex infrastructure must pass through detailed bureaucratic channels before crews can break ground on individual projects. “The federal government announced the (2016) program in two phases,” Atkinson explains. “The first phase was the smaller-type repair projects that were ready to go.” He adds that work has already begun on some projects, while others are undergoing planning and
negotiation. Indeed, the process is exhaustive. Under terms set through the 2016 budget, and again with the 2017 budget, the federal government must sign framework agreements with the respective provinces and territories, and the mid-tier governments are then expected to submit lists of individual projects to the federal government. When a proposed project is municipal in scope, municipal governments must submit plans to the province or territory, and this level of government must lend its support, including meeting funding agreement requirements. Only when the provinces and territories have supplied project lists will the federal government commit actual dollars. Atkinson points to Saskatchewan to illustrate how long it can take to unleash federal infrastructure dollars. The Prairie province was among the first mid-tier governments to finalize its 2016 framework agreement with the federal government, and this only happened last September. Infrastructure Canada’s online tracking tool provides a window on all this, so the public can see a list of approved projects
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and where individual projects stand <www. infrastructure.gc.ca/pt-sp/index-eng.html>. New framework agreements were needed because the infrastructure program enacted by the Liberals differs substantially from those under Build Canada. “What’s taken so long is the provinces,” Atkinson says. “It hasn’t been easy to get their signature on a piece of paper. And then, after the framework agreements have been signed, the provinces have to send the feds a list of proposed projects for funding. But — guess what — those lists don’t always happen according to clockwork.” Last October, several southwestern Ontario municipalities proposed wastewater projects. After several months passed, without any word of progress, the municipalities became frustrated, thinking the federal government was holding things up. “Some of them approached us because they hadn’t heard a thing,” Atkinson says. “We contacted the feds in April and they told us they had just got the list in March. The province had been sitting on 1,000 water and sewer-type projects.” Atkinson is sympathetic, quick to acknowledge the complexity of what’s
Top: Montreal’s Turcot Interchange Project. Bottom: Toronto road construction.
going on. “You’ve got three governments involved on many of these projects,” he says. “People have to understand the process. The initial approval by the federal government is just that — initial approval. They’ve agreed to fund a project at whatever their percentage is. But they don’t call the tender. If it’s a municipal project, the municipality determines when the project’s going to proceed. So if there’s blame or
concern around how long it takes for stuff to get going, it’s not just at the federal level.” In fact, Atkinson says he’s thrilled with the current federal government’s commitment to infrastructure, which significantly exceeds Build Canada dollars. “When the stimulus program came in back under the Conservatives, these were so-called shovel-ready projects. A lot of them were on-sitemag.com / 19
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As part of Investing in Canada, the federal government plans to launch the Canada Infrastructure Bank later this year. The Bank will be structured as an arm’s length Crown corporation with a mandate to attract private sector and institutional investors to support infrastructure seen as transformational. This includes public transit, green energy, and trade and transportation corridors. Infrastructure Canada says the Bank will invest $35 billion in federal funding, with $15 billion of that sourced from the $180 billion the 2017 budget allotted towards infrastructure over the next 12 years. The Bank will have financial instruments at its disposal, including debt and equity, and will look for investments in projects that have a public sponsor, serve the public interest, and generate revenue. For more information about the Canada Infrastructure Bank, please visit: www.infrastructure.gc.ca/ CIB-BIC/index-eng.html For more information about the Investing in Canada Plan, please visit: www.infrastructure.gc.ca/plan/ about-invest-apropos-eng.html
structure Canada transportation-related announcements, including $1.09 billion in federal funding towards the Ottawa LRT project and $1.283 billion towards Montréal’s Réseau électrique métropolitain. Another major project that is moving along is the New Champlain Bridge corridor, one of the largest construction projects in North America. While shovels are hitting the ground across Canada, the pace varies by region and niche of infrastructure. “We’re seeing a huge increase in the number of water and sewer projects in municipalities,” says Tom McGinn, executive director of the New Brunswick Road Builders and Heavy Construction Association. “Even smaller towns and villages are doing projects that
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already designed and sitting on the shelf, and they were expedited. So I think we got spoiled and expect government to be able to act that quickly all the time. People don’t understand that on these cost-share projects the feds don’t pay anything until a project’s underway and the bills are coming in.” Infrastructure Canada’s written response to questions illustrates the bureaucratic gauntlet projects must run in order to unleash upper-tier dollars. The latest iteration of the infrastructure plan, $180 billion over 12 years, sorts projects into five categories: public transit, green infrastructure, social infrastructure, trade and transportation, and rural and northern communities. Furthermore, federal departments other than Infrastructure Canada are participating in the decision-making. “Infrastructure Canada is one of many federal departments involved in the Investing in Canada plan and is not solely responsible for the funding,” a spokesperson says, offering as an example Transport Canada’s responsibility for trade and transportation funding. The federal government must sign new integrated bilateral agreements with the respective provincial and territorial governments, as it did with Phase 1 funding, which lay out the details of the programs. The Minister of Infrastructure and Communities, Amarjeet Sohi, recently sent letters to the provinces and territories to establish the next steps and launch negotiations for these programs. These letters can be seen at <www.infrastructure.gc.ca/plan/about-invest-apropos-eng.html#letters>. Nevertheless, Infrastructure Canada says funds have been flowing steadily, with the pre-existing federal Gas Tax Fund providing more than $2 billion per year and funding supporting roughly 2,500 projects annually. Funds are also already flowing from the 2016 budget. “Under the Public Transit Infrastructure Fund and the Clean Water and Wastewater Fund, Infrastructure Canada has approved and announced more than 2,800 projects (and) nearly 90 per cent of (those) projects are already underway,” Infrastructure Canada says. The spokesperson also pointed to recent Infra-
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INFRASTRUCTURE REPORT we’ve never seen, in my recent memory anyway, and they’re a result of the federal money.” Even where there are delays, McGinn expresses optimism. Provincial Route 11, along the Northumberland Strait, is an example, with construction not expected to kick in until next year. “The province didn’t have the project designed and ready to go, but it is now, and we’re hearing that a couple of the tenders might even be called by late summer or early fall.” A route along the Bay of Fundy, designed to link otherwise unconnected roads, is also on tap for 2018. “It’s going to be a huge boost for the tourism in that area. From what we’re hearing, the next three to four years in our province is going to be good,” McGinn says. One thing that always worries McGinn is change of government, a route New Brunswick travelled following the 2010 provincial election. “A new government came in and just stopped everything,” McGinn said. “One of the main points we make with government and the Department of Transportation is to try to level out the funding so we don’t have these peaks and valleys. So we don’t have a $500 million capital budget and then there’s a change of government and all of a sudden it goes down to $100 million. It’s hard on contractors because they ramp up for busy seasons and are left with a bunch of equipment they can’t use and employees they don’t need.” As director of trade and investment with the Canada West Foundation, Carlo Dade has his eye on trade infrastructure, which includes ports, airports, rail and highways. “Everything you think of to move goods and services to market,” he says. Trade infrastructure projects enhance or facilitate the movement of goods and can include interchange upgrades and grade separations, which facilitate the coexistence of rail and vehicular traffic. Dade says the federal government needs to come out with actual criteria for this category. “Without the criteria, my thinking is they’d be stymied in trying to spend the additional $10 billion or so that they added specifically for trade infrastructure.”
The New Champlain Bridge corridor, one of the largest infrastructure projects in North America, is moving along well, according to industry experts.
The reality, Dade says, is the private sector already invests heavily in infrastructure, whether that be for expanding the Port of Vancouver or upgrading a rail shipping yard. “You need central government money to fund complementary infrastructure,” he explains. “If you’re moving grain from Saskatchewan, then you’ve got to go all the way back to Saskatchewan or even to Brandon (Manitoba) to figure out the linkages to move it out.” Dade understands governments need time to figure things out and plan accordingly, but he’d like greater collaboration between government and the private sector to help decision-makers better understand production and supply chains and how these impact where governments need to invest in order to leverage private sector dollars. Winnipeg, Manitoba deputy mayor Jenny Gerbasi, president of the Federation of Canadian Municipalities, says communities are already seeing new infrastructure activity. “Most budget 2016 housing investment (has) flowed efficiently, such as for repairs and retrofits to existing social housing. Others, such as the Affordable Rental Innovation Fund, have been much slower in flowing funds to proponents.” Clean Water and Wastewater Fund 2016 dollars have been almost fully allocated, with hundreds of individual projects announced in the last half-year. “Municipalities welcomed this short-term funding dedicated to water infrastructure projects and were ready with applications,” Gerbasi says. “In some cases the review process at the provincial/territorial level caused delays, but generally our members have found that this funding has flowed
quickly.” Gerbasi calls the 2016 budget’s $20.1-billion transit plan “historic in both scale and mechanism” and says predictable, allocation-based funding directly to transit systems, with cost-sharing models that have federal and mid-tier governments sharing more than three-quarters of the costs “recognizes local fiscal limits and empowers cities to deliver outcomes.” She also pins hopes on a $2 billion, 11-year fund announced in the 2017 budget to support rural infrastructure. “FCM is requesting that the new rural and northern infrastructure fund support the local capital priorities of rural communities — including roads and bridges, septic system upgrades and the full range of transportation and mobility needs in rural areas,” Gerbasi says. Calling for increased clarity on what access local governments will have to federal green infrastructure funding, Gerbasi says municipal governments need to be included in early discussions regarding the design of federal infrastructure funding programs. “Local governments are best placed to understand what investments are needed, and what will improve the quality of life for their residents. Turning these historic investments into historic outcomes will require the full partnership of all orders of government.”
“
Saul Chernos is a Toronto-based freelance writer. Send comments to editor@ on-sitemag.com.
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“Komatsu support keeps us going.” MATT SMITH
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THE CUSTOMER IS ALWAYS RIGHT.
“Product performance, brand reputation and good pricing were a big part of why I switched to Komatsu. I saw their commitment to the customer, and once we tried the product we were instantly blown away! Komatsu’s and my distributor’s support are first class. And Komatsu was first to market with intelligent Machine Control. They’re always adding innovations that keep me more efficient, and more profitable.”
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COMPACT EQUIPMENT
Playing favourites A
sk any operator, and they will tell you: everyone has a favourite piece of equipment. There are lots of factors that contribute to one’s fondness for a specific piece of machinery, but its most often related to comfort, familiarity, and efficiency. According to leading equipment manufacturers, power, maneuverability in tight spaces, and intuitive controls, are the most common features that contractors love about their machines. Cab comfort, visibility, and the ability to use equipment in the winter for snow removal are also big sellers. We took a closer look at six of the industry’s most popular machines to find out why contractors love them.
On-Site polls leading OEMs to find out which compact machines are most popular with contractors BY CORINNE LYNDS
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COMPANY: TORO Model: Toro Dingo TX 1000 compact utility loader (CUL) Features: This most recent addition to the Dingo lineup, is also the most powerful. The unit has a rated operating capacity exceeding 1,000 lb. When the loader arms are fully extended, the hinge pin measures 81 in. from the ground to allow the TX 1000 to easily reach over the side of dumpsters and one-ton trucks to maximize jobsite productivity. Also unique to the industry in this category is the verticle lift loader arm design, which keeps the load closer to the machine to allow operators to lift more weight with greater confidence. Why contractors love it: Apart from realizing the benefits of a machine that’s both maneuverable and powerful, operators like that it includes effortless and intuitive controls, a high-drive track system that ensures the machine withstands demanding site conditions, and the stand-on platform for the operator, which allows for excellent visibility when reversing.
COMPANY: CATERPILLAR
COMPANY: WACKER NEUSON Model: WL32 articulated wheel loader Features: With an operating weight of 7,496 lb., this model has evolved since its original release in 2007. It includes a slow speed and travel kit, which allows the operator to keep the engine speed up to enable maximum hydraulic flow, while at the same time moving very slowly as required. Why contractors love it: While it is a year-round machine, its primary use in Canada is for snow removal applications. Operators like that it offers exceptional visibility while clearing snow, quiet operation, ability to operate in confined spaces, quick travel speed compared to conventional skid steers, and a nice comfortable cab for extended use.
Model: 259D compact track loader Features: Originally released in 2010, the 259D has evolved over the years. It is a mid-frame sized track loader with 74 hp engine that delivers a power dense performance. Standard 2-speed travel increases productivity by making job sites quick and easy to navigate. When combined with a range of Cat Work Tool attachments, the machine’s versatility can be expanded. Why contractors love it: Versatility is why contractors love this machine. The auxiliary hydraulic system, either standard flow (20 gpm) or high flow (30 gpm), allows the machine to be combined with performance matched hydro-mechanical work tools to expand its productivity and versatility for an even wider variety of tasks and applications.
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COMPACT EQUIPMENT COMPANY: ASV HOLDINGS INC.
COMPANY: JOHN DEERE Model: 333G compact track loader Features: The 333G is the biggest machine in the John Deere compact equipment lineup. It has 100 hp, a rated operating capacity of 3,700 lb, and a tipping load of 10,570 lb. The original model, the 333D, was released in 2010. The next evolution of the 333D was the 333E, which was released in 2012. The 333G debuted in 2016. Building upon the historical D series model, the 333G is more powerful, can lift and push more weight and has higher horsepower than its predecessors. Why contractors love it: Contractors love this model because it’s extremely productive and cost-effective. It moves a tremendous amount of dirt – anywhere from 5 to 20 per cent more than other industry models. What’s more, the 333G costs 19 to 52 per cent less to own than top industry competitors in terms of maintenance.
Model: Posi-Track RT-30 compact track loader Features: With an operating weight of 3,600 lb., the RT-30 has evolved tremendously since its original release in 1998. It has been upgraded with high-quality components, such as high-torque stainless steel hose clamps and a Perkins engine. The largest area of improvements is in the machine’s undercarriage. It was originally a closed-track design, but now all of the company’s machines have an open-rail, drivesprocket design. This lengthens the sprocket and bogie life, and the open-rail design makes it faster and easier to clean. Why contractors love it: Contractors and rental centres love the RT-30 because it’s a commercial-quality, compact machine that works in tight spaces for a variety of applications, from landscaping and snow removal to construction. This saves on costs in limited-space applications that would otherwise require manual labour. Despite its size, the RT-30 is not an entry-level machine. It’s built with the same durability, efficiency and serviceability as larger ASV models. It offers a safe and more productive alternative to similarly sized walk-behind and stand-on mini skid-steer loaders.
COMPANY: TAKEUCHI Model: TL8 compact track loader Features: The most recent version of the TL8 is heavier and offers more horsepower and operating capacity than its predecessors. Auxiliary high-flow hydraulics and 15.7-in.-wide track design are available as an option. Telematics, or Takeuchi Fleet Management is now standard for two years and available after for a small monthly fee. Why contractors love it: Contractors and rental companies love its size and weight. It has an excellent power to weight ration for so many different types of jobs. At 8,500 lb. and 5 ft. 5 in. wide without the bucket, it is easy to haul from one jobsite to the next.
Corinne Lynds is editor of On-Site. Send comments to editor@on-sitemag.com.
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AUGUST 2017
THE CARBOCLAVE BLOCK PG. 35
IN THIS ISSUE: www.on-sitemag.com 30 Habitat
for Humanity | Government invests in clean technology
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CONCRETE NEWS
Lafarge supports Habitat for Humanity’s Jimmy and Rosalynn Carter work project in Canada
I
n celebration of Canada’s 150th anniversary, Lafarge Canada Inc. became a Gold sponsor of Habitat for Humanity Canada’s biggest build project ever. Habitat for Humanity’s 34th Jimmy and Rosalynn Carter Work Project took place in every province and territory across Canada with the goal to collectively build 150 homes to mark Canada’s 150th anniversary of Confederation. Former U.S. President Jimmy Carter and his wife Rosalynn, visited Canada from July 9-14, 2017, focusing their efforts in Edmonton and Winnipeg. Habitat Canada has a long history of creating affordable housing opportunities. People living in Habitat homes not only help to build their own houses, they also pay affordable mortgages. Habitat for Humanity’s innovative approach helps working families on a new path to better, affordable living conditions that lead to improved health and stronger childhood development, as well as a decrease in reliance on food banks. “Lafarge is proud to continue its work building better cities and communities by sponsoring the Jimmy and Rosalynn Carter Work Project. We are confident that our donation of ready-mix concrete and concrete paving will add to the sustainability of the Carter Place development in Edmonton, which will house 58 families. Concrete will provide a safe and long-standing foundation for the homes as well as a highly durable pavement which will minimize maintenance requirements,” said Bruce Willmer, vice president and general manager for Lafarge in Edmonton. “We support Habitat for Humanity Canada’s important work because Lafarge believes that everyone in Canada has the right to a safe, affordable and decent place to live.” In addition to supporting Habitat’s Carter Work Project, Lafarge has supported
Habitat throughout Canada with donated materials and volunteer time for some 20 years. Of note, are the first NetZero energy precast concrete homes in North America, which Lafarge built to benefit Habitat for Humanity Edmonton. See: https://www. youtube.com/watch?v=Yrg292dwSTA Since 1984, President and Mrs. Carter have traveled around the world with
Habitat, to build and improve homes. Their time and effort helps to raise awareness of the critical need for affordable home ownership around the world. Inspiring millions over the last three decades, President and Mrs. Carter have worked alongside nearly 100,000 volunteers in 14 countries to build, renovate and repair more than 4,000 homes.
Ove
GOVERNMENT OF CANADA INVESTS IN NOVA SCOTIA’S CLEAN TECHNOLOGY SECTOR OTTAWA – Canadians will benefit from a new innovation that reduces carbon dioxide emissions, conserves fresh water and leads to greener buildings as a result of a $510,000 investment by the Government of Canada. This investment will foster innovation in carbon sequestering technology that captures carbon dioxide and encases this harmful greenhouse gas permanently in concrete. This investment in CarbonCure, a clean technology company based in Dartmouth, NS, will lead to well-paying middle-class jobs and new business opportunities for Canadians. It will also lead to cleaner technologies that result in less air pollution and healthier communities. Continued on page 32
1. R 2. M 3. P o 4. E c
MAP wate have and o
Visi
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1. Reinforcing steel 2. Mapeshield ™ I (anticorrosion galvanic anode) 3. Planitop ® XS (hand-applied repair mortar) or Planitop 12 SR (low-pressure spray mortar) 4. Elastocolor ® Coat (protective and decorative coating)
1. Planibond ® 3C (corrosion inhibitor) 2. Planitop 11 SCC (self-consolidating concrete mix with silica fume and corrosion inhibitor) or Planitop XS (hand-applied repair mortar) or Planitop 12 SR (low-pressure spray mortar) 3. MapeWrap™ Primer 1 (saturant) 4. MapeWrap 11 or MapeWrap 12 (epoxy smoothing putty) 5. MapeWrap 31 or MapeWrap 21 (epoxy saturant) 6. MapeWrap C Uni Ax 300 or 600 (carbon fiber fabric) 7. MapeWrap 31 (epoxy saturant) 8. Sand broadcast 9. Elastocolor Coat (protective and decorative coating)
1. Mapefer ™ 1K (anticorrosion coating) 2. Planitop 18 ES (rapid-hardening repair mortar) or Planitop 18 (very rapid-hardening repair mortar) 3. Planiseal ® LVB (crack healer/sealer) 4. Planiseal Traffic Coat FS (fast-setting epoxy overlay for bridge decks)
MAPEI offers a full spectrum of products for concrete restoration, below-grade waterproofing and structural strengthening. Globally, MAPEI’s system solutions have been utilized for bridges, highways, parking garages, stadiums, buildings and other structures. Visit www.mapei.com for details on all MAPEI products.
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CONCRETE NEWS The announcement was made June 30th by Darren Fisher, Member of Parliament for Dartmouth-Cole Harbour. The funding will support CarbonCure’s efforts to reduce the amount of carbon dioxide that is released into the environment during the process of producing concrete used to construct buildings. The company has developed a technology that traps and stores carbon dioxide emissions
inside concrete. The concrete is then used to retrofit buildings. CarbonCure’s technology results in stronger concrete that turns a harmful greenhouse gas into an ingredient for a value-added commodity. “CarbonCure’s technology captures carbon dioxide emissions from industrial pollution. And then, through a chemical reaction, those waste greenhouse gases are recycled back into the process for produc-
ing concrete. This technology makes stronger concrete with a lower carbon footprint. It has the potential to create well-paying middle-class jobs in Dartmouth and equip Nova Scotians with the skills they need for a fast-growing, globally competitive economy based on clean technology,” said Darren Fisher, Member of Parliament for Dartmouth-Cole Harbour. This project is being funded through Sustainable Development Technology Canada, which works with Canadian companies to bring bring early-stage clean technologies to market. Investments in clean technology are part of the Government’s Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class and those working hard to join it.
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LEAN, MEAN, CUTTING MACHINES NO MATTER THE APPLICATION, WE HAVE YOU COVERED. The Husqvarna K 760 and the more powerful K 970 power cutters are the perfect solution for most jobs. The K 760 bosts the lowest vibrations, 2.4 m/s 2, on the market and both feature a fuel-sipping X-Torq® engine. The K 970 features a more powerful 6.5 hp engine, perfect for highway or demolition work. To try one for yourself, call for a demonstration nationwide.
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• To help clean technology firms grow and expand, the Innovation and Skills Plan includes investments of nearly $1.4 billion in new financing on a cash basis, starting in 2017–18. That funding will be allocated through the Business Development Bank of Canada and Export Development Canada as follows: • $380 million in equity financing to support clean technology producers • $570 million in working capital to support clean technology producers • $450 million in additional project finance for clean technology producers • Budget 2017 also commits $400 million to recapitalize Sustainable Development Technology Canada’s SD Tech Fund, which supports the development and demonstration of early-stage clean technology projects.
SOURCE Innovation, Science and Economic Development Canada
Copyright © 2017 Husqvarna AB (publ.). All rights reserved. Husqvarna is a registered trademark of Husqvarna AB (publ.).
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GREEN CONSTRUCTION
The Carboclave block: Good for the environment, and contractors’ bottom line BY NATE HENDLEY
B
Cambridge, Ont.’s Boehmers uses captured CO2 to make stronger concrete blocks.
oehmers is a concrete block producer in Cambridge, Ont. with a new, carbon-dioxide (CO2) infused product said to be great for the environment and superior to traditional concrete blocks. The company has been selling the Carboclave block, as the product is called, for a little over a year, earning praise from contractors and industry associations. Manufacturing concrete and cement generates large amounts of environmentally-damaging CO2. For decades, researchers have talked about using captured CO2 to enhance the curing process to make better concrete. The Carboclave block is one of the first commercially viable products to successfully use this procedure. Each Carboclave block sequesters roughly 0.5 pounds of industry-recovered carbon-dioxide per 20 cm unit. “The Carboclave block is a regular concrete block [that goes through] enhanced curing with CO2. The CO2 is absorbed or sequestered into the block and reacts with calcium ions to create a calcium carbonate,” explains Boehmers president, Paul Hargest. Calcium carbonate (CaCO3) is from the same family as limestone and granite, two very hard substances. Calcium carbonate on-sitemag.com / 35
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GREEN CONSTRUCTION Konia Masonry Corp. has used Carboclave blocks to build condos, an apartment for seniors, a university stadium, and an arena.
At the time, McGill’s civil engineering department was interested in “exploiting CO2 as a curing mechanism” for concrete, says Zaid Ghouleh, a research associate at the university. crystals reinforce the cement paste in the Carboclave blocks, making the final product more robust and durable than a conventional block, says Hargest. The Carboclave curing process consumes less energy than conventional steam curing. As a result, Boehmers has been able to drastically reduce the amount of natural gas it uses during production, which in turn has reduced the company’s carbon footprint. No wonder Hargest calls the Carboclave blocks “the greenest products in the marketplace.”
In operation since 1875, Boehmers currently has about 20 employees and five pressure vessels for autoclaving purposes. The Carboclave block is the result of a collaboration between Boehmers and McGill University of Montreal that began roughly a decade ago. At the time, McGill’s civil engineering department was interested in “exploiting CO2 as a curing mechanism” for concrete, says Zaid Ghouleh, a research associate at the university. Hargest, meanwhile, was concerned about the environment and potential regulatory changes and looking for an
alternative to autoclave curing. McGill got in touch with Hargest. After some discussion, Boehmers became McGill’s industry partner in a project involving CO2 and the concrete curing process. In 2009, the project was awarded a three year National Sciences and Engineering Research Council of Canada (NSERC) grant worth roughly $450,000. McGill provided technical support, supervision and laboratory space for R&D, says Ghouleh, a PhD student at the time and one of several university personnel involved in the project. Hargest contributed his facilities plus roughly $200,000 of his own money. Some of these funds went to buy new equipment, such as a liquid CO2 tank. “From 2009 – 2015, it was in-house testing, lab testing and small-scale testing, just to ensure we were on the right track with everything that we were doing,” states Hargest. Proof of concept was done in a lab while trial runs were made at Boehmers. Once the research phase successfully concluded, Hargest took charge of commercializing the product. In December, 2015, he commissioned the first full production run of Carboclave blocks at Boehmers. He brought the product to market a few months later. Hargest, who has a patent on the Carboclave curing process, is spearheading the introduction of the blocks to North America’s construction sector. Hargest buys his CO2 from a company called Praxair, which in turn captures it from industrial facilities in Southern Ontario. Praxair refines the carbon-dioxide, liquefies it then sends it to Boehmers. Hargest turns it into a gas form before using it in his curing process. According to Boehmers’ president, Carboclave blocks are stronger (“between 30 and 35 MPa” or roughly double minimum CSA Group standards, says Hargest), denser and less prone to chipping than conventional blocks. They also have improved freeze-thaw resistance and reduced sorptivity/permeability, says Hargest. Carboclave blocks are slightly heavier than conventional blocks and harder to cut. This is an advantage claims
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1068475 OnSite_Q
For over 75 years, QUIKRETEÂŽ has been the top choice for building the strongest projects and bringing old ones back to life. With 150 manufacturing plants and over 200 professionalgrade products, QUIKRETE has what you need for your next residential or commercial concrete construction job, no matter the size. Learn more at quikrete.com.
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GREEN CONSTRUCTION
Weight monitoring of Carboclave blocks.
Scaled-down kiln for precise water loss measurement.
Hargest who says, “When you do cut them, it’s like cutting glass. You get a real nice straight line.” Hargest is finishing up a few existing orders then switching completely from autoclave to Carboclave curing. At full production, Boehmers can produce nearly 20,000 blocks a day.
THE BOTTOM LINE In addition to being eco-friendly, Carboclave blocks are good for the bottom line. “It’s less expensive to produce and it retails for the same price [as traditional concrete blocks]. It should enhance my margins by a little bit … What it allowed me to do was eliminate my gas consumption. In 2015, I burned over one million cubic metres of natural gas. Starting next week, I’ll burn zero in production,” he states. Needless to say, this reduction has meant significantly fewer CO2 emissions going into the atmosphere. Carboclave blocks consist primarily of Portland cement mixed with supplementary cementitious materials (SCM). No Silica Flour is used, so Carboclave blocks are slightly darker, with a more greyish tone than Boehmers’ old product line (which contained silica) and less hazardous to manufacture. “It’s safer for the workers in the plant. When I used silica, no matter how many controls you have in place and how clean you keep the plant, you still get airborne
Concrete specimens subject to pyrolysis for CO2 content determination.
particles which we had to monitor every year for. We had to send our employees for chest X-rays and inhalation tests on an annualized basis just to make sure there wasn’t any early onset of Silicosis which is caused by Silica,” says Hargest. Hargest has received industry recognition. In March, 2017, the Canadian Construction Association (CCA) honoured Boehmers with its 2016 CCA Excellence in Innovation Award, for its efforts with the Carboclave block. The CCA aren’t the only ones who are impressed. Gary Kappeler, facilitator at Konia Masonry Corporation in Waterloo, Ont., says his company has been using Carboclave blocks since May, 2016. “To date, we have completed seven projects using the Carboclave block and are starting another eight projects over the next two months,” says Kappeler. Completed projects, all based in Southwestern Ontario, include condos, an apartment for seniors, a university stadium, an arena, etc. “The product has many benefits from both the productivity and marketing perspectives for our firm and the industry in general. Productivity: excellent quality related to material consistency and tolerances resulting in improved productivity. Minimal remediation time required due to chippage resulting in contractor cost savings. Marketing: This is the most innovative development in the concrete block
manufacturing industry to date,” states Kappeler. He also notes that Carboclave’s “improved compressive strength provides the opportunity for the engineering community to build higher and/or consider the product for use in other applications thereby creating additional market share opportunities…There is no cost variance to the end consumer…We will continue to use the Carboclave product as part of our company standard.” Back at Boehmers, Hargest hopes the Carboclave block becomes standard across the construction industry. While he sells the product directly to some dealers and contractors, Hargest is looking to license the technology involved in making Carboclave blocks to other companies. “I have other producers within the marketing area in Canada and a couple in the U.S. interested in the technology. So I expect moving forward that I will probably enlist those people to produce the same way that I am. Hopefully, the block industry overall will become a carbon sink for other industries, while manufacturing a far superior product than is currently made with regular concrete today,” he states.
Nate Hendley is a Toronto-based freelance writer and author. Send comments to editor@on-sitemag.com.
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SOFTWARE By Jacob Stoller
Can construction be automated?
I
n the feature “Top construction firms embrace technology, finally” from the June issue of On-Site, two experts from leading construction firms cited stagnant productivity as a major problem facing the industry. This view, we noted, is supported by a recent Boston Consulting Group study, which found that while productivity has grown 153 per cent overall, construction has seen a decline. Advances in information systems have been cited as a catalyst for higher productivity in many sectors. In manufacturing, the wide proliferation of CAD/CAM systems opened the door to automated manufacturing from 3D models with CNC machines and robotics. Now that BIM systems have made 3D models readily available in construction, will machines soon be able to fabricate buildings and large-scale infrastructure? The prospect of automating construction has preoccupied Dr. Behrokh Khoshnevis, an entrepreneur and a professor at University of Southern California with a background in industrial fabrication, since 1994 – long before BIM systems came into wide use. Khoshnevis now holds more than 100 worldwide patents, and in early 2018, his company, Contour Crafting, will complete its first production model of a robotic 3D printer capable of autonomously constructing the shell of an entire building out of concrete. 3D printing and construction might seem like an unlikely combination, but according to Khoshnevis, there’s a remarkable link. 3D printing, sometimes referred to as a form of additive manufacturing, builds an object by adding one slice or layer at a time from a digital file. Construction, Khoshnevis notes, is also additive in that respect. “It occurred to me 22 years back that buildings are the only things that humans have constructed in layer-wise fashion,” says Khoshnevis. “Bricklaying is layer by layer, so in that sense, 3D printing has been around for thousands of years in construction, while the world of manufacturing only got to it about 10 years ago. So the potential of 3D printing may actually be in construction, not in manufactured small parts.” The challenge with 3D printing is that fabricating layer by layer is slow, particularly when precision has to be high and layers thin. “The question I considered was ‘how do you build in thick layers, to make the speed of construction for a building meaningful?’” says Khoshnevis. “So Contour Crafting is based on the idea of constructing a building in a series of thick layers.” Khoshnevis has set his sights high – his vision includes constructing entire buildings in hours rather than months, bringing decent housing to impoverished regions, and constructing on
the moon and Mars. In connection with the latter, he received several research grants and contracts from NASA and was awarded two grand prizes in international competitions sponsored by NASA in 2014 and 2016, respectively. The lunar challenge in particular forces us to think about construction very differently. Transportation is at a hefty premium – it costs around $100K to ship a pound of material to the moon – so waste is intolerable, therefore it’s necessary to use local materials wherever possible. (Part of the ongoing research is about making concrete with local moon aggregate.) Speed is of the essence, as it is extremely costly to sustain and finance any kind of activity on the moon. And, there are no local work crews. The potential spin-offs of this research in terms of improving efficiency in construction are enormous. Conventional methods of moving and using materials, for example, are highly inefficient – according to the Contour Crafting website, the average single-family dwelling produces between 3 and 7 tons of waste, and the building materials supply chain, with multiple players shipping from many locations, is arcane and error-prone. Improvements here would be of particular value when building in remote regions of Africa, or Canada’s North. The time length of projects is also a key area – tying up equipment, materials, and labour for months at a time creates huge financing costs, which account for a major portion of the cost of construction. As well, conventional construction is poor at responding to emergencies, as we’ve seen in humanitarian crises such as the Hurricane Katrina disaster. The biggest impact, however, would come from reducing manual labour in an industry where we see a host of danger-related expenses insurance, regulatory compliance, lost time, and protection against litigation. And of course, eliminating dangerous work could reduce the immeasurable human cost of the deaths and injuries that occur every year in construction, particularly in regions of the world where workers aren’t protected by regulations. The Contour Crafting machines will be available to contractors through lease or purchase, and the company is also planning to offer, through partnerships, support services to help to implement projects. It’s hard to predict how this technology will be received in an industry that has resisted change. “It depends on one thing – profitability,” says Khoshnevis. Automation came to manufacturing at a time when profit margins were high, he notes, while construction is a mature, highly competitive industry with low margins and a relatively high entry Continued on page 43
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RISK By David Bowcott
BIM drives productivity gains in construction sector
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or years, the construction industry has been hounded by economists, consultants, and academia, for not being as productive as other key industries. Everyone has seen the graphs that show construction on a downward productivity trend while other industries boast solid productivity gains. The following is a productivity graph that was produced by McKinsey & Co. that compares productivity in construction to that of the manufacturing sector from 1994 to 2011. Productivity in manufacturing has nearly doubled, whereas in construction it has remained flat. Overview of productivity improvement over time Productivity (value added per worker), real, $2005 Manufacturing Construction
105 100 95 90 85 80 75 70 65 60 55
1.7x
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Source: Expert interviews: IHS Global Insight (Belgium, France, Germany, Italy, Spain, United Kingdom, United States); World input-Output Database
The graph illustrates productivity growth of the manufacturing sector is almost two times that of the construction sector. Graphics like this have fuelled a drive within the global construction industry to find ways to improve productivity. And, it appears to be working. Graphs being produced in 2017 are starting to show the construction productivity line trending upwards. Before we dive into compiling a list of reasons as to why the construction sector is beginning to improve its productivity position, let’s discuss briefly what the reaction of the construction industry was when graphs like the one above came out, and how it started the industry on a track to reap similar improvements in productivity. When the construction sector first started seeing productivity graphs like the one above, the immediate reaction was that they weren’t fair. Several top minds within the construction sector felt comparing manufacturing to construction was the ultimate comparison of apples to oranges. Manufacturing is done in a single location under a controlled environment, using well-organized sequencing strategies in order to optimize efficiency. Construction jobs are anything but a single location, and rarely take place in an antiseptic environment. Too many variables driven by the specific location of the construction project do not allow for the same elegant dance of machinery and people that one would see in a
manufacturing plant. Ultimately, the manufacturing sector has the luxury of being able to see problems, or risks, much faster than the construction sector. The point made by the construction sector in response to these productivity graphs were well understood by all, and set construction experts on a path to try and figure out ways to turn the “snowflake” like nature of a construction project, into a manufacturing-like environment. These graphs led the construction sector to ask itself – How could it gain better visibility around things going wrong on their projects, to the same degree the manufacturing sector has such visibility? The primary pillar that set the construction industry down a path to replicate the visibility on risk that manufacturing has, is Building Information Modeling or BIM. The Institute for BIM in Canada published a document in 2013 called Benefits of BIM for Owners whereby they defined BIM as follows: “The term BIM refers to both a set of electronic models that describe a building as well as the collaborative process of using those models to plan, execute and manage the physical building itself. Virtually all BIM models contain the geometry of a building, including spaces and services, yet BIM is more than 3D CAD. In addition to geometry, models contain functional requirements, implementation details, and other information. For example, the BIM representation of a pump might include the physical dimensions, location within the building, installation notes, operating schedule, warranty and maintenance records, as well as links to other components in the system.” BIM is a multi-dimensional mapping of what the physical asset should look like and through its implementation on the project all project stakeholders are given much greater visibility of how the asset should be constructed. It is the primary vehicle by which all parties involved in the project ensure things are done right. What’s more the wave of technology that is coming out and attaching itself to the BIM models (AR/VR, scanning technology, artificial intelligence, printable technologies, robotics, etc.) is allowing for even greater visibility into risks, thus making BIM a primary pillar in the drive to improve productivity within the construction sector. When you start to see that construction productivity line perking up towards the sky, know full well a majority of its change in direction can be attributed to the introduction and implementation of BIM models on construction projects.
David Bowcott is Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions. Please send comments to editor@on-sitemag.com
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Continued from page 40
barrier primarily due to regulatory requirements. “The cost might initially not be as exciting as it sounds,” he says, “so we have to look at other advantages. Speed of construction and time to market are incomparable to the manual approach. You can build a whole shell of a building in a day. Precision, and the capabilities for implementing complex geometries are much greater. And finally, you are eliminating hazardous work.” It will be very interesting to see what happens when these robotic 3D printers hit real world construction sites. Stay tuned!
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Jacob Stoller is principal of Toronto-based consultancy StollerStrategies. Send comments to editor@on-sitemag.com.
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CONTRACTORS & THE LAW By Dirk Laudan and Kristen Withers
Back from the dead: Defunct contractor defended by lien bond surety
A
recent decision by the Court of “Effectively, the contractor that allow a bonding company to defend a Queen’s Bench in Alberta, allowed lien action as an “added party”, on certain came back form the dead terms. The legislation in Ontario that allows a bonding company that had posted a lien bond in court to a bonding company to be an “added party” to defend the lien claim, does not exist in Alberta, but a section defend a lawsuit to enforce a lien claim – even though the bonding company was not of the Alberta Builders’ Lien Act lets the at the instigation of the a formal party to the lawsuit, the general court “make any further order or direction bonding company.” contractor who posted the bond had gone it considers desirable” in a builders’ lien bankrupt, and the trustee in bankruptcy had proceeding. This gives the court very wide no interest in defending the claim. discretion indeed and, using it, the court Effectively, the contractor came back allowed the surety to “step into the shoes” of from the dead to defend the lien claim, at the instigation of the the defunct contractor to defend the lien claim, in the same way a bonding company. surety can do in Ontario. From a legal standpoint this was interesting because the The bonding company’s rights were limited to what the court Alberta builders lien legislation does not say, in so many words, considered to be fair. The bonding company could advance the that the court has jurisdiction to allow a bonding company to defunct contractor’s delay and deficiencies claims, but only to defend a lien claim in this way. Instead, the court used broadly defend the claim on the bond, not to get a judgment against worded sections of the legislation to support its conclusion. the subcontractor. Also, if the bonding company were to lose, In the case Stratum Projects Alberta Inc. v. Aman Building it would have to pay right away, and would be responsible for Corporation, a subcontractor called Stratum worked on a projthe lien claimant’s costs even if they went further than the lien ect in Canmore. Stratum was unpaid, and liened the project for bond amount. Overall, however, it was a success for the bondamounts owing. The general contractor refused to pay, citing ing company in overcoming its essential problem of not being deficiencies and delay. To remove the lien from title (presumably permitted to defend. The principal reason the court gave was that because the owner insisted), the general contractor posted a lien it would be unfair to the bonding company to have its liability in court. The general contractor then, however, went bankrupt. decided without giving its side a voice. The bankruptcy trustee took over the general contractor’s busiThere are a couple lessons that can be drawn from this. 1) ness affairs, but for its own reasons it would not defend the lien Courts can be creative in avoiding what they consider to be unfair action, or try to prove the counterclaim for delay and deficienresults, such as allowing one side in a case to proceed virtually cies. Unless there was someone who could advance the bankrupt unopposed. 2) One cannot bank on winning a case with a purely contractor’s arguments about deficiencies and delay, the bonding technical argument, if that leads to a one-sided advantage. 3) company seemed sure to lose. This would have affected not only Judges can be skilled in finding ways around such apparent the bonding company, but also anyone who was an indemnitor of unfairness. Another point to consider is that bankruptcies add the bonding company other than the bankrupt company. None of an additional aspect of complexity to builders’ lien law, which is them would have been in a position to defend the claim, even if already a complicated subject. Avoiding the pitfalls involved in the defences based on deficiencies and delay were valid. Not even bankruptcies in the context of construction litigation requires an the principals of the defunct company could have insisted that inventive and well-informed approach. the trustee in bankruptcy take a position. To try to get around this problem, the bonding company first Dirk Lauden is a partner at the law firm of Borden Ladner Gervais asked the court to allow it to defend the claim as an “intervenor”, but the court decided it did not meet the legal test. That was not, LLP in the construction group. Kristen Withers is an associate with the commercial litigation group in Vancouver. Send comments to however, the end of the story. The court decided to “look east” editor@on-sitemag.com. (in Master Schlosser’s words) and consider Ontario precedents
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