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VOLUME 62, NO.6/ DECEMBER 2017

COVER STORY 24 2018 Construction Forecast With 2017 headed for the history books as a wild ride on economic and political fronts, On-Site asked economists and industry watchers what we might expect for 2018.

24

DEPARTMENTS 7 Comment Future-proofing infrastructure

10 News Industry news

17

Show Report ICUEE 2017

22 Construction Stats The latest news on construction activity and employment

COLUMNS 54 Software How safe is your data?

56 Risk

43

32

The value of disciplined project contingency

58 Contractors and the Law What is the holdback anyway?

57 Index of Advertisers

32

43

49

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COMMENT

Future-proofing infrastructure “When people tell me they don’t believe in

are moving into urban areas, and at the same

climate change. I ask them: ‘Do you believe

time, government is investing heavily in infra-

in gravity? The destructive power of climate

structure. If this alone were not a juicy enough

change is the same as the strength and reality

thought, take a closer look at existing infra-

of gravity,” stated climate change guru Chris-

structure, it too will need replacing soon.

tian Figueres during a CCPPP keynote address in Toronto. Figueres, who is the former executive secretary of the United Nations Framework Convention on Climate Change talked to

Contractors that embrace sustainable practices will make the single-greatest impact in lowering GHG emissions, and grow their businesses. In order to do this, however, they need

contractors, engineers, owners, and architects

to partner with designers, architects, govern-

about future-proofing public infrastructure.

ments and equipment suppliers. With the right

She offered a somber warning that we are running out of time to act on climate change, but quickly followed that up with a potential

partnerships we have the opportunity to build smart, sustainable cities. This being our annual Construction Forecast

solution. “We need to change how we invest in

issue issue, we are looking ahead to 2018 with

infrastructure.”

an eye on innovation. New materials, technol-

The cost to build infrastructure that

ogies, delivery models, and designs will drive

addresses climate change is only 5 to 8 per

business and potentially reduce GHG emissions

cent more than the status quo. And once you

in the coming year.

factor in efficiencies and longer life expec-

I wish you the happiest of holiday seasons,

tancies of new materials and technologies,

and all the best for a prosperous and sustain-

it’s actually cheaper in the long run. This will

able New Year.

future-proof buildings in two key ways: 1) The

Get the latest construction news! Follow us on Twitter @OnSiteMag

structure of the buildings will be designed and built to withstand extreme weather events over longer periods of time; and 2) It will signifi-

Corinne Lynds / Editor CLynds@on-sitemag.com

cantly reduce the “nearly 70 per cent of GHG emissions that hard infrastructure currently accounts for,” according to Figueres. “There is a huge construction opportunity here,” she said. “We still have a lot of new infrastructure that needs to be built.“ Canadian contractors should be salivating at the opportunity this creates. Our global population is growing, more and more people

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CONTRIBUTORS

MEET OUR CONTRIBUTORS FOR THIS ISSUE JACOB STOLLER / Principal, StollerStrategies On data breaches: “Contractors are particularly vulnerable to social engineering because they have a high turnover in their workforce and also deal with many suppliers and partners, resulting in many potential information sources for hackers.”

www.on-sitemag.com / Fax: 416-442-2230

PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com ASSISTANT EDITOR | Jillian Morgan (416) 510-5201 jmorgan@annexbusinessmedia.com MEDIA DESIGNER | Lisa Zambri lzambri@annexbusinessmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com ACCOUNT COORDINATOR | Kim Rossiter (416) 510-6794 krossiter@annexbusinessmedia.com CIRCULATION MANAGER | Urszula Grzyb (416) 442-5600 x3537 ugrzyb@annexbusinessmedia.com

DIRK LAUDAN / Borden Ladner Gervais LLP On holdbacks: “One of the basic elements in builders lien law in British Columbia is the 10 per cent mandatory holdback. Anyone making a payment on account of a construction contract or subcontract is entitled to retain, from those payments, 10 per cent of the amount of the payment.”

Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.com

COO | Ted Markle tmarkle@annexweb.com President & CEO | Mike Fredericks Established in 1957, On-Site is published by Annex Business Media 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 Publications Mail Agreement No. 40065710 ISSN: 1910-118X (Print) ISSN 2371-8544 (Online)

DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On project contingency development: “Construction is not a predictable business, and the project contingency is that all encompassing pool of capital dedicated to each project, which provides much needed funding when the unexpected happens.”

Circulation email: apotal@annexbusinessmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-5170 Mail: 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 SUBSCRIPTION RATES Canada $48.50 per year, Outside Canada US$85.50 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.

SAUL CHERNOS / Freelance Writer On the 2018 construction forecast: “So, with 2017 headed for the history books as a wild ride on economic and political fronts, On-Site asked economists and industry watchers what we might expect for 2018.”

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.

MEMBER OF

Canadian Construction Association

8 / DECEMBER 2017

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INDUSTRY NEWS

INDUSTRY>NEWS CaGBC kickstarts Canada’s low-carbon economy with Zero Carbon Building Program registration Zero Carbon Pilot Project CAMH

The Canada Green Building Council (CaGBC) has opened public registration for Canada’s first Zero Carbon Building (ZCB) Program, which provides third-party verification of compliance for zero carbon design and performance. This world-class Standard positions Canada as a global leader, offering designers and operators the opportunity to make carbon reduction the key indicator for building performance. In order to achieve large-scale market transformation, the standard is designed to be broadly applicable across many types of new and existing buildings, and aligns with recent and upcoming federal and provincial policies that target net zero performance. The ZCB Program joins CaGBC’s other successful programs in providing solutions for the industry as it prepares for a carbon constrained future and a rapidly evolving economy. “I am confident that the Canadian building industry is ready to lead the global shift to zero carbon by building on the extensive experience and capacity delivering LEED across the country,” says Thomas Mueller, president and CEO of the CaGBC. “The CaGBC Zero Carbon Building Standard provides the framework to guide the industry toward achieving zero carbon performance, and to making real progress in moving to a low-carbon economy.” A part of CaGBC’s Zero Carbon Buildings Initiative, CaGBC has been working with 16 Zero Carbon Pilot Projects across the country. This elite group represents the broad applicability of the Standard, with both new and existing projects ranging in size from 20,000 to 1.3 million sq. ft. found across the country. Many of the Pilots are now completing the design stage and report they have found the ZCB Standard key to shaping their design strategies. “The CaGBC’s new Zero Carbon Building Standard charts an innova-

tive, bold new course for the future of buildings. Oxford is piloting the standard because it will help us meet the changing expectations of our customers and future proof our buildings, all while doing the right thing for our community,” says Andrew McAllan, head of Real Estate Management, Oxford Properties Group who has two projects in the ZCB Pilot. For the West 8th and Pine MixedUse Pilot Project proposed in Vancouver, CaGBC’s ZCB Standard is a way to achieve a deeply sustainable development while also helping them comply with the City of Vancouver’s new Zero Emissions Building Plan. “Although we’ve been proponents and early adopters of high-performance and sustainable building features, we recognize that incremental improvement is not moving the dial far enough and that we need a fundamental and transformative shift in how we design, specify, and buildout our projects,” says Kirk Robinson of Delta Land Development who owns this project. “With this in mind, the principles that the project team have started to iden-

tify for our 8th and Pine mixed-use development align perfectly with the CaGBC Zero Carbon Building Pilot Project Program, in particular as we want this project to ultimately serve as a demonstration to the private sector development industry that these measures are viable, on-market, and the way forward.” The MacKimmie Complex Redevelopment at the University of Calgary is a Pilot Project aiming to be the first zero carbon building on campus. It will include the retrofit of a 14-storey tower and the construction of a new building that will include a double-skin façade – one of the first projects in Canada to use this technology. “Our participation in the CaGBC’s Zero Carbon Building Standard pilot program offers University of Calgary the opportunity to learn from our peers and contextualize it to the Alberta energy environment with an eye to fiscal responsibility, while still delivering the space and program that supports the needs of our campus,” says Boris Dragicevic, Associate Vice President of of Facilities Development at U of C.

Major new transit hub in Toronto takes next step forward Ontario is making it easier for commuters and families to get around the Greater Toronto and Hamilton Area (GTHA) by redeveloping Kipling Station into a major new transit hub that connects subway, regional rail, and inter-regional bus services within a single station. Steven Del Duca, Minister of Transportation, was joined by Peter Milczyn, MPP for Etobicoke-Lakeshore, Yvan Baker, MPP for Etobicoke Centre, at Kipling GO Station to announce that the province has moved into the next phase of procurement with the close of the request for proposals to design and build the hub. “With this next step, we are closer to providing an important mobility hub that will benefit commuters and get people where they are going sooner. This is proof our government is committed to improving transit networks to enhance our quality of life,” said Del Duca Ontario is integrating the subway, GO train and local and regional bus services, including GO, TTC, and MiWay services, into a single mobility hub that will include a new terminal and better access for drivers, cyclists, and pedestrians.

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INDUSTRY NEWS Inaugural Board of Directors announced for the Canada Infrastructure Bank

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“The appointment of the Board of Directors is another important milestone towards the Canada Infrastructure Bank becoming operational. The range of expertise and experience that these directors bring is invaluable to the success of the Bank and to the investments that it will make in Canadian communities, which will create good jobs across the country,” says Sohi. As an arm’s length Crown corporation, the Canada Infrastructure Bank is governed by its independent Board of Directors. The Board is responsible for the governance and oversight that will enable the Canada Infrastructure Bank to successfully deliver on its mandate. The Board is led by Janice Fukakusa, who was appointed chairperson in July 2017.

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Amarjeet Sohi, Minister of Infrastructure and Communities, announced 10 professionals have been appointed as the Board of Directors of the Canada Infrastructure Bank. Their appointments were made following an open, transparent, and meritbased selection process that attracted a range of talented and experienced candidates that reflect Canada’s linguistic, cultural, and regional diversity. The Board members are: • Kimberly Baird • Jane Bird • Dave Bronconnier • James Cherry • Michèle Colpron • Bruno Guilmette • Christopher Hickman • Poonam Puri • Stephen Smith • Patricia Youzwa

One York Street achieves LEED Platinum, and breaks record

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EllisDon’s landmark, One York Street project, achieved LEED Platinum, the highest level of certification awarded by the Canada Green Building Council (CaGBC). Through the qualification process, One York Street earned 89 points, which also represents the highest score ever awarded to a Toronto building. Beyond the advantages and connectivity provided to tenants, the project incorporates environmentally sustainable features throughout the building, including: state-of-the-art lighting control system that uses occupancy sensors, daylight sensors, and optimized fixture layout; fresh air delivery system; two large rainwater collection systems; abundance of natural lighting; rooftop garden; and 300 bike racks to encourage fitness and alternate commuting methods among occupants.

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INDUSTRY NEWS

Bauma selects Canada as official partner country for 2019 show Bauma, the world’s largest trade show for the international construction machinery, mining equipment, and building material machinery sectors, has named Canada as its official partner country for the April 2019 show. According to organizers Canada was chosen to “reflect the great international relevance of its minerals, building materials, and construction sectors as well as the anticipation of significantly expanding EU-Canadian trade under the CETA agreement. “Canada is one of the most important

commodity-producing countries there is. In addition, CETA, the free trade agreement recently signed between the EU and Canada, will lend fresh impetus to bilateral trade. This is why we want to use bauma 2019 and the opportunities afforded by the

partner country concept to bind our industries even closer together,” says Johanna Sailer, chairman of the Construction Equipment and Building Material Machinery Association within the VDMA and chairman of the bauma exhibitors’ advisory board.

CCPPP announces 20th annual national awards recipients The Canadian Council for Public-Private Partnerships (CCPPP) presented the CCPPP National Awards for Innovation and Excellence in Public-Private Partnerships at its 25th annual conference in Toronto on November 6. “We were impressed and pleased with not only the range of projects but the high quality of the submissions for the 20th Annual National Awards,” said CCPPP Awards committee chair Cliff Inskip “We have remarkable projects all across the country and we received submissions from all regions including Northern Canada.” “The Council’s Awards program highlights the exceptional leadership and innovative thinking that distinguishes the Canadian P3 model as globally best-in-class,” says Mark Romoff, president and CEO of CCPPP. “We are proud to honour this world class work and acknowledge and celebrate their success. Congratulations to this year’s recipients.”

CAMH Project

The Iqaluit International Airport.

The Gold Award for Infrastructure was awarded to The Iqaluit International Airport Project The Awards Committee noted this project is “an outstanding demonstration of how vital infrastructure in Northern Canada can be successfully delivered in a public-private partnership.” In addition, Committee members took particular note of the project proponent’s extensive and effective commu-

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INDUSTRY NEWS

The Gold Award for Service Delivery was awarded to Canada Line Adjudicators in this category were impressed that The Canada Line P3 Rapid Transit project in Vancouver “continues to be a superlative success story after eight years of operation.” Initially delivered ahead of schedule and on budget for the 2010 Olympics, its usage level is far ahead of expectations, system service delivery performance meets and exceeds requirements, and it has been a major catalyst of economic activity.

The Silver Award for Project Development has been awarded to the City of Saint John – Safe Clean Drinking Water Project The City of Saint John – Safe Clean Drinking Water Project is a perfect example of applying a P3 procurement model to allow municipal governments to replace aging critical water infrastructure in their cities and towns is a more timely, integrated and comprehensive manner. The Awards Committee made particular note of “the approach that Saint John took with this project to customize P3 concepts to address complex greenfield and brownfield developments that other municipalities can use as a model to modernize water treatment and distribution systems to ensure they deliver a safe and quality product to their citizens.”

The Silver Award for Infrastructure was awarded to Calgary Composting Facility In addition to being the first composting facility to be delivered under the P3 model in Canada, the Calgary Composting Facility is also the largest of its kind in North America. The Awards Committee noted: “The DBF-OM delivery model and solution adopted is directly relevant to many Canadian municipalities seeking environmentally friendly and sustainable treatment of food and yard waste while reducing pressure on landfill facilities.”

The Silver Award for Project Development has been awarded to The Centre for Addiction and Mental Health The Awards Committee noted the CAMH project excelled in its extensive plans to integrate new buildings with the surrounding community to create a more inclusive environment. In addition, the Committee members noted “the project required an enhanced contractural and risk allocation structure as a result of directly interfacing with existing CAMH facilities and with a P3 Project Company involved with an earlier phase of development.”

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Government of Canada announces wind-down of PPP Canada Crown Corporation The Government of Canada is moving forward with its historic plan to invest in infrastructure, including leveraging private sector investment and know-how in order to build more infrastructure in communities across Canada. PPP Canada was created eight years ago to promote the adoption of the Public-Private Partnerships (P3) concept across Canada. Since its creation, PPP Canada has played a key role in establishing P3s as an effective way to ensure performance of infrastructure from design and planning, to long-term maintenance. P3s have since become widely used by different jurisdictions in Canada. Given that PPP Canada has fulfilled its mandate and Canada has developed a strong P3 market, the Honourable Amarjeet Sohi, Minister of Infrastructure and Communities, announced the Government of Canada’s intention to dissolve PPP Canada. “PPP Canada has played an important role in developing the P3 market in Canada. With the P3 model now widely adopted across the country, PPP Canada has effectively fulfilled its mandate. Canada will continue to be a world leader in P3s and the Government of Canada continues to support the model as an effective way to build more infrastructure across Canada,” said Sohi. PPP Canada operations are expected to cease by the end of 2017 with it being dissolved effective March 31, 2018.

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ICUEE SHOW REPORT

BUSY BOOTHS AT ICUEE ICUEE 2017 delivers innovative industry trends, hands-on experiences and enthusiastic crowds

T

he temperature outside wasn’t the only thing running hot last month in Louisville, KY. Attendees and exhibitors at ICUEE – the International Construction and Utility Equipment Exposition agreed the show exceeded expectations with specialized exhibits, hands-on test-drives, interactive product demonstrations and lots of activity and leads in the booths. Running Oct. 3rd to 5th, the 2017 instalment of the Demo Expo was the largest in the show’s history with 28-plus acres of exhibits (nearly 1.24 million net square feet) of the latest utility and construction equipment, products and technologies and more than 1,000 exhibitors, of which 25 per cent were new to the show. Tracking close to the 2015 record-breaking attendance, nearly 18,000 registered attendees from all 50 states and more than 50 other countries worldwide perused the exhibits, raised money for the Red Cross Disaster Relief and the Call of Duty Endowment, and took advantage of all the show had to offer. Attendee demographics in the utilities category was up 6 per cent over 2015 and the utility construction category was up 3 per cent over 2015 totals. “We had a great turnout and participation at ICUEE 2017,” said Rick Rodier, vice president, Sitework Systems Division of The Toro Company and 2017 ICUEE chair. “It was inspiring to see the enthusiasm of so many utility and construction professionals networking and sharing ideas, and finding the product innovations and solutions that will help them grow their businesses.”

EXHIBITS AND EQUIPMENT “TEST RUNS” ICUEE 2017 featured specialized exhibit pavilions for fleet management, safety and green utilities, China and Korean exhibit pavilions, and the Lift Safety Zone from the National Commission for the Certification of Crane Operators (NCCCO). Hands-on equipment test drives and interactive product demonstrations included a 2-mile Test Drive Zone for on-road equipment and technologies. Over the roar of the Super Witch, a demo vehicle with an 850-hp 502 Chevy Engine, Tucker Dotson, Ditch Witch regional sales manager for the Eastern United States, shared that the show has been going great for the enduring ICUEE exhibitor. “Telecom is hot and it’s a big deal for us to be here at ICUEE,” said Dotson. “We’ve been coming to the show since

its inception, and 2017 has proven to be another great show for Ditch Witch. It’s been steady in the booth and it’s a great opportunity for us to meet with customers and prospects and show our equipment in one location.” Liz Kendrick, project sales manager for Man Lift, a new exhibitor to ICUEE, echoed Dotson’s comments. “We are looking to make our mark in the industry and shows like ICUEE help us do that,” said Kendrick. “We couldn’t be happier with the experience. Our president came down in 2015 to walk the show and at that point we knew this was the way to go to get out to market. We’re busy and we’re very happy with the results.” Representatives from Ditch Witch and Man Lift said they plan to return to the next ICUEE, in 2019. on-sitemag.com / 17

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ICUEE SHOW REPORT EDUCATION ON INDUSTRY BEST PRACTICES ICUEE 2017 education focused on utility and construction “hot topics” presented by industry experts to help attendees enhance their safety knowledge, increase efficiencies and reduce downtime on the job. New Field Classroom sessions highlighted industry best practices first hand with equipment on the show floor, and the indoor ICUEE Demo Stage expanded the show’s outdoor equipment demo component with more product innovations in action. Another new feature, ‘Tomorrow’s Topics Today’ sessions from show owner and producer Association of Equipment Manufacturers (AEM), explored industry trends and emerging technologies. Rounding out ICUEE 2017 education were popular returning programs: the iP

Utility Safety Conference and Utility Fleet Conference plus industry certifications.

SPECIAL EVENTS AND NETWORKING In response to the unusual number of natural disasters, a new ‘Disasters Taskforce: Preparing for What’s Next’ program tackled disaster preparedness in the aftermath of the current hurricane season, with a former FEMA advisor. Gretchen Bakke, author of ‘The Grid: The Fraying Wires Between Americans and Our Energy Future’ was the featured speaker in the new ‘Diversity in the Grid’ luncheon sponsored by Terex Utilities and AEM. The ICUEE Industry ‘Give-Back’ Auction returned with the goal of connecting military veterans with quality jobs. All proceeds went to the Call of Duty Endow-

ment, the non-profit organization founded by Bobby Kotick, CEO of Activision Blizzard. The auction, plus onsite donations, to benefit the organization raised more than $37,000. A new “Discover ICUEE” walking tour before show opening offered a behind-thescenes look at the exhibition, and ICUEE 2017 closed with an enhanced ‘Bourbon, Beer & Bites’ networking reception. The biennial ICUEE is also known as The Demo Expo and is the leading event for utility professionals and construction contractors seeking comprehensive insights into the latest industry technologies, innovations and trends, owned and produced by the Association of Equipment Manufacturers (AEM). The next ICUEE will take place in October 2019.

HERE ARE A FEW STANDOUT PRODUCTS FROM ICUEE 2017: NEXT-GENERATION VACUUM EXCAVATOR Vactor Manufacturing’s HXX concept vacuum excavation truck maximizes legal payload for customers and improves operational efficiency. The placement of the debris body and water tank on the concept’s chassis ensures equal distribution of the payload on the axles, regardless of how much water is in the tanks. This design is an improvement over previous vacuum excavators configured with sloped floors in uni-body designs where weight shifts as water is used and debris is loaded, often resulting in lost payload capacity.

HDD TRAINING SIMULATOR BOOSTS JOBSITE CONFIDENCE The Ditch Witch virtual reality simulator familiarizes HDD operators with machine controls while reducing possible safety implications of putting them directly on a jobsite. The innovative experience provides an opportunity to simulate a real HDD jobsite via the technology’s two-screen display and joystick. On one screen, operators can simulate drill controls while getting a 3-D look at the full HDD bore path on the other. The virtual, hands-on experience simulates a variety of drilling scenarios, including soil conditions, piping options and downhole tooling.

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ICUEE SHOW REPORT

VERSATILE COMPACT TRACK LOADER The largest and most powerful compact track loader in the industry, the large-frame, radial-lift Posi-Track RT-120 from ASV Holdings Inc., helps operators easily handle tough excavation, mulching and other challenging applications. The RT-120 includes superior serviceability, highly efficient hydraulics and innovative, high-capacity cooling systems. These features allow operators to handle the largest attachments for longer without bogging down or overheating.

GAS ENGINE DRIVEN AIR COMPRESSOR COMPACT-RADIUS EXCAVATOR Hyundai Construction Equipment’s HX130LCR is the third compact-radius excavator model in the company’s HX series product line. The 13.5-ton machine is also available in a second standard configuration, the HX130LCRD, which includes a dozer blade. The HX130LCR excavator is powered by a 73.6-hp (55-kW) Perkins 854F Tier 4 Final diesel engine. The LCR model has a standard operating weight of 29,750 lbs. (13,495 kg), while the LCRD model’s standard operating weight is 31,290 lbs. (14,195 kg).

VMAC’s G30 gas engine driven air compressor, now powered by a Honda GX390 gas engine, offers up to 30 CFM at 100 per cent duty cycle, making it ideal for operators using air tools for light-duty applications. The change from the Subaru EX40 engine to the Honda GX390 engine is significant as it represents several major improvements to VMAC’s popular G30 air compressor: 23 per cent quieter at high idle, and 75 per cent quieter at low idle; 15 per cent more fuel efficient; and has improved operational performance at hot temperatures and high elevations.

COMPACT BACKHOE DELIVERS PERFORMANCE The JCB 3CX compact backhoe loader delivers performance and capability in a 35 per cent smaller package, making it well suited for utility projects in urban locations. The 3CX compact is compatible with skid steer loader attachments and handheld hydraulic tools—such as a disc cutter, hammer and impact wrench—for maximum versatility. The backhoe is capable of road speeds up to 25 mph (40 km/h) and features standard four-wheel steering for a turning circle of just 19 feet (5.8 m), less than the width of a two-lane road.

COMPACT RT6 CRAWLER CARRIER

DIRECTIONAL DRILL DELIVERS ADDED POWER

Terramac’s RT6 crawler carrier is the company’s most compact unit yet. Its footprint of 16ft. 2in. x 8ft. 2in., delivers a 12,000-lb. carrying capacity and boasts travel speeds up to 6.5-mph, ensuring quick cycle times to keep productivity levels on point. And, a 130-hp QSB 4.5 Cummins engine allows the RT6 to tackle a wide-range of general construction, pipeline, utility, and environmental applications with ease.

Utility and underground contractors have a new solution to save time and streamline operations with the introduction of the Toro DD2226 directional drill. It delivers 2,600 ft.-lbs. of rotational torque and 22,000 lbs. of thrust and pullback for outstanding versatility, allowing the machine to pull back and turn larger reamers in tough ground conditions. Dual rear stabilizers provide additional stability in uneven terrain.

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SHINE AND PROTECTION With its latest product introduction, LUBE-A-BOOM is adding a new dimension to its line up of friction-reducing lubricants for construction and lifting equipment. Beyond removing tar, diesel residue, grime, insects, tree sap, grease and much more from machines that are often put to work in the dirtiest of environments, LUBE-A-SHINE is insoluble to water. This gives it the added bonus of lasting longer on equipment in the elements, before requiring reapplication.

DAY-TO-DAY DEPENDABILITY Talbert Manufacturing offers contractors an efficient and safe way to haul day-to-day loads with its 35CC-HRG low-bed trailer. The lowboy unit is rated at 70,000 lbs. overall and 70,000 lbs. within a 12-ft. load base. It also features Talbert’s removable hydraulic gooseneck for fast and easy equipment loading and unloading.

N SERIES BACKHOES CASE N Series backhoes include the new 580N EP – a lower-horsepower version of the company’s popular 580N backhoe that maintains the same backhoe lift capacity and breakout force with greater fuel efficiency and a DOC-only maintenance-free Tier 4 Final solution. All N Series backhoes come standard with SiteWatch telematics, and can be outfitted with a variety of industry-exclusive standards/options such as Power Lift, Ride Control, Auto Ride Control (4WD models), Comfort Steer, ProControl, Easy Flex side lights and a mechanical universal backhoe bucket coupler that allows contractors to use attachments from competitive machines.

QUIET AND POWERFUL MOBILE GENERATORS Doosan Portable Power’s G25, G50 and G70 mobile generators incorporate numerous innovations based on customer input and are aimed at improving operator experience. The newly packaged Tier 4 Final–compliant generators offer improved fuel efficiency, extended runtimes and the industry’s lowest sound levels. The G25, G50 and G70 models are the first mobile generators equipped with Doosan-built engines — the D18, D24 and D34 respectively. The high-performance engines deliver increased fuel economy, unrivalled motor starting capability and reliable operation in extreme conditions.

THE EASY WAY TO BOOST PRODUCTIVITY.

Adrian Steel’s Drop Down and Grip Lock Ladder Racks are designed with ergonomics and user safety in mind. Whether you’re upfitting a single van or an entire fleet, Adrian Steel has just what you need. Increased efficiency starts now. © Adrian Steel Company 2017, all rights reserved. Adrian Steel Company is an independent equipment manufacturer, prices may vary. Please visit AdrianSteel.com to contact your local distributor for further details.

AdrianSteel.com

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

BUILDING PERMITS UP IN SEPTEMBER

CONSTRUCTION EMPLOYMENT ROSE IN OCTOBER

Building permits rose in September for the first time in three months, as strength in the non-residential sector outweighed some weakness in the residential sector Canadian municipalities issued $7.9 billion worth of building permits in September, up 3.8 per cent from the previous month. A 1.7 per cent decrease in the residential sector was more than offset by a 13.9 per cent increase in the non-residential sector. A high-value institutional building permit issued in Alberta was behind much of the increase.

•

Employment increased by 35,000 in October, and the unemployment rate rose 0.1 percentage points to 6.3 per cent.

• Employment gains in the month were driven by full-time work (+89,000).

•

In construction, employment rose by 18,000 in October. Compared with October 2016. SOURCE: Statistics Canada SOURCE: Statistics Canada

NON-RESIDENTIAL BUILDING CONSTRUCTION ON THE RISE Contractors’ prices for new non-residential building construction rose 0.6 per cent in the third quarter. Prices have increased across industrial, commercial and institutional building structure types since the fourth quarter of 2015. Prices for new

non-residential building construction were up in all seven census metropolitan areas (CMA) surveyed. Prices rose the most in Vancouver and Montréal (both up 1.0 per cent). Contractors working in Vancouver reported a rise in the costs for architectural and structural building components due to higher material costs and a shortage of skilled labour.

SOURCE: Statistics Canada

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8/10/17 4:05 PM 2017-12-07 2017-11-14 11:16 10:30AM AM

2018 FORECAST

2018 Forecast:

A Look

AHEAD BY SAUL CHERNOS

A

ll eyes are on the year ahead, as a tumultuous 2017 winds down. Oil prices remain low, edging towards a mild recovery but not expected to come close to the highs of 2013-2014. And prospects for pipeline construction remain mixed, with TransCanada withdrawing its high-profile Energy East application in mid-autumn. At the opposite end of the spectrum, real estate prices in some of Canada’s biggest cities are skyrocketing, with vacancy rates to match. And, with strong nationalist

sentiments coming from the Trump administration in the US, the North American Free Trade Agreement remains mired on the chopping block. So, with 2017 headed for the history books as a wild ride on economic and political fronts, On-Site asked economists and industry watchers what we might expect for 2018. Michael Burt, director of industrial economic trends with the Conference Board of Canada, characterized 2017 as a bottoming out and strikes a note of cautious optimism for the country’s

construction sector. “We saw two — and if our forecast holds for this year — probably three consecutive years of decline in spending on construction activity in Canada. But we seem to be reaching a nadir in terms of the downturn in the industry over the last couple of years. We actually see growth in the range of three per cent going forward into 2018 in terms of spending on structures and engineering projects.” Citing Statistics Canada’s forecast of a nearly three per cent increase in Canada’s

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gross domestic product next year, Burt said the construction sector and the national economy are poised to grow. He added, though, that he doesn’t foresee a return to the highs of 2013-2014, after which oil prices plunged and stalled many of the economic improvements that had taken place following the recession of 20082009. Business spending on building and engineering reached $155 billion in 2014 but looks to be less than $100 billion this year. “Most of the decline in the last couple of years can be tied directly or indirectly

to the drop in commodity prices in mining and oil and gas. That’s been the main drag on construction activity in Canada over the last couple of years,” says Burt. Still, he notes degrees of stability. “Oil prices have actually improved modestly and, when you talk about things like industrial metals, those industries are no longer a drag on construction activity. They’re not adding a lot of growth, but that switch from being a major thing slowing down construction activity to being at least neutral and even slightly positive is a big

step towards seeing growth in construction activity again.” Canadian Construction Association past-president Michael Atkinson said stabilizing energy prices are a positive sign but ongoing government commitment to infrastructure investment makes a huge difference. “We expect to see more of that in 2018,” he says. “Some of the programs reach out seven to ten years, so that’s something we believe will provide some spin-off and be a major mainstay of construction demand in the ICI sector on-sitemag.com / 25

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2018 FORECAST

going forward.” Atkinson is particularly buoyed that the federal Liberals have not only continued but added to the previous Conservative government’s infrastructure plan. “We promote the idea of long-term infrastructure programs and plans because they’re less likely to get completely abandoned by successive governments. We hope governments see that infrastructure is so important and so key to their future economy and social wellbeing that successive governments won’t jeopardize that future by cutting prudent infrastructure investments.” While Atkinson sees the Canadian construction sector holding its own and the national economy faring better than earlier projections suggested, he laments the withdrawal of Energy East. “The refineries in eastern Canada need the crude, and we put up so many hurdles that I’m surprised those guys stuck around as long as they did. We’ve got to do a better job of ensuring that Canada remains a nation where investment and development are encouraged, not where we’re putting up a big sign saying closed for business.” Peter Hall, chief economist with Export Development Canada, said domestic policies are crucial, yet global events and pressures influence international financing and have a strong impact on Canada’s economy. “There’s been significant anti-trade rancour and rumblings all over the place,” Hall said. Brexit might seem half way around the planet, yet Canada is undergoing a showdown of

“Businesses haven’t been investing at a normal pace throughout the entire post-recessionary period and they’re bumped up against capacity constraints, so they’re more inclined to invest now than they have been in the last seven years.” — Peter Hall, Export Development Canada

mammoth proportions with the US over the possible renegotiation or termination of NAFTA. “It throws business into confusion,” says Hall. “Businesses haven’t been investing at a normal pace throughout the entire post-recessionary period and they’re bumped up against capacity constraints, so they’re more inclined to invest now than they have been in the last seven years. The trouble is, when you inject uncertainty and don’t know what our trade super-structure is going to look like over the next little while, you get very hesitant investors.” Hall didn’t predict any significant surge in commodity prices. “We’re not looking for oil prices to turn too far from the $50 threshold, and base metals will be pretty tame as well,” he said. As for the Canadian Dollar, which was briefly at parity with the US Dollar a few years ago before plunging back towards .70 cents, Hall said values of roughly .78 cents in October may drift into the lower to mid .80 cents range through 2021. How might the multitude of factors impact Canada’s ICI construction sector this coming year? “The recession came after a period of over-investment, and when activity dropped there was all kinds of spare capacity in the economy,” Hall said. “Our rate of under-investment over the last seven-plus years has kept us from adding to our capacity, so the increase in activity has used up what we have and we’re getting close to very “We hope governments tight measures of capacity see that infrastructure is so constraints. That’s what actuimportant and so key to their ally kicks off new spending on future economy and social wellbeing buildings and equipment in that successive governments won’t the industrial and commerjeopardize that future by cutting prudent cial space.”

infrastructure investments.” — Michael Atkinson, Canadian Construction Association

DID YOU KNOW? • Business spending on building and engineering looks to be less than $100 billion this year compared with $155 billion in 2014. • Vancouver is looking to capture and treat 90 per cent of the city’s average annual rainfall by implementing green infrastructure tools and design guidelines on public and private properties. • The Yukon Resource Gateway Project is on track to build infrastructure and open up mineral-rich areas for economic development. • Maritime prospects include the Mactaquac dam in New Brunswick and Husky Energy in Newfoundland. • Downtown office vacancy rates in Canada’s biggest cities ranged from 4 per cent in Toronto to 27 per cent in Calgary this past fall.

Saul Chernos is a Toronto-based freelance writer. Send comments to editor@on-sitemag.com.

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OnSite_

When the other contractors saw the power of that excavator, their jaws dropped to the floor. Powerful productivity.

That’s our Ex Factor. – Glenn Korner, owner, Midstate Site Development

Midstate Site Development owner Glenn Korner says having Volvo on the job won them a school job by allowing them to propose a slide rail system. It required a machine powerful enough to drive the slide rail system into the ground. It saved the customer $250,000 — and got Midstate in, out, and on to the next job in just two months. Find tips to get the most from your excavator at volvoce.com/ExFactor.

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2018 FORECAST

Top 10 construction trends in 2018 BY SAUL CHERNOS

M

ichael Atkinson met in late summer with a group of Canada’s top construction leaders to gauge the state of the industry. With another year-end in sight, the now-past president of the Canadian Construction Association recounted a range of concerns — some naggingly familiar, others coming to the fore. These are trends that stand to influence construction in 2018: Aging Workforce: We’re not getting younger. As workers retire, they’re taking vast stores of knowledge with them. Relentless Technological Change: Augmented reality, 3D printing, driverless equipment and more stand to change the way we plan, design and build. New skill-sets are constantly needed. Project Size and Complexity: Bigger isn’t always better, but it’s going that way, especially with massive hydroelectric and mining projects involving broad consortia in far-flung, remote locations. Globalization: Firms from outside Canada are increasingly getting in on the action here. Gobble-ization: Mergers and acquisitions are involving all segments of the industry. These pressures are contributing to the slow death of the small and medium size firm. One-Stop Shopping: Clients often want to integrate the entire plan-design-build process, plus property maintenance.

Deteriorating Designs: Documents, specs, drawings and plans are becoming increasingly ambiguous, contradictory and lacking specific important details and coordination. Deteriorating Payment Practices: Contract terms are being extended, with 30 days becoming 60, 90, even 120 days. Will this lead to a new trend — demand for legislation reform? Procurement Helter-Skelter: Owners are turning to non-traditional ways to obtain design and construction services. Because of the growing lack of capacity, knowledge and experience within their own ranks, some owners and clients are looking to be less involved in the process. The risk? New practices might not be appropriate or even applicable. Risk Adversity: Risks and responsibilities traditionally borne by clients are being transferred to contractors. “A lot of these things are related,” Atkinson explained. Compound Canada’s aging workforce with rapid technological change, for instance, and companies might find it challenging to anticipate the skills new personnel will need. Atkinson attributed deteriorating designs, in part, to a general lack of experience, with more knowledgable workers retiring. But technological changes tie in, too. There are also links between project size and complexity, increased foreign competition and a rise in mergers and acquisitions. “They manifest themselves in different ways but they’re all trends our members are seeing.”

““Montreal is busy because Montreal is always busy.” — Bob Blakely, Canada’s Building Trades Unions.

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Green infrastructure sprouting up BY SAUL CHERNOS

W

ith scientists forecasting increasingly turbulent weather, builders developers and governments can expect heightened pressure in 2018 to green their infrastructure. The Ontario Ministry of Environment and Climate Change, for instance, is developing new measures for stormwater run-off volume control. “It will require that in any new construction or redevelopment work all projects will have to manage on-site the 90th percentile of rainfall events,” said Clara Blakelock of Green Communities Canada. That translates into about the first 25 millimetres of rain, depending on exactly where you are in the province, she explained. The problem is twofold. Water carried off-site doesn’t recharge local water tables, and heavy rains sweep debris, residues and other waste into waterways.

Ontario’s rules date to the 1990s and acknowledge the importance of managing rain on-site. But the province has still been approving catch basins and storm sewers. “Now they’re coming back and saying people really need to change the way they’re doing things,” Blakelock said. “There’s pretty strong language about what’s going to be required for new developments.” British Columbia is also promoting stormwater management on-site, and municipalities are also getting on-board. Vancouver has just come out with a strategy to manage 90 per cent of its rainfall close to where it falls, Toronto has a green roof bylaw and other guidelines, and Halifax and Kitchener, Ont. charge stormwater fees based on a property’s impervious area. “A lot of communities get their drinking water from groundwater aquifers, so if these aren’t being recharged through infiltration

then they can start to dry up,” Blakelock said. “And the pollution from runoff closes beaches and affects fishing, tourism and drinking water.” Tangible measures include permeable pavement and trees as well as landscaping such as rain gardens and bioswales. “Underground infiltration galleries can be completely invisible underneath a parking lot,” Blakelock said. Green infrastructure can increase property values, make streets more walkable, improve air quality, provide habitat for pollinators, reduce the urban heat island effect and help mitigate huge costs arising from storm damage. “Cities across the country are seeing increased flooding and other impacts,” Blakelock said. “These are ways of building resiliency into our cities.”

Regional Outlook BY SAUL CHERNOS

F

rom Sea to Sea may be a Canadian motto and unifying force. However, economic conditions vary considerably across the country. On-Site looks at prospects for 2018 region by region.

BRITISH COLUMBIA: Vancouver and the province are faring quite well. However, provincial commitment to the Site C hydroelectric project is uncertain, and proponents withdrew several proposed liquefied natural gas projects. Still, considerable infrastructure work is underway. “The simple fact that people want to reside in that area means considerable uptick on commercial and institutional work,” said Bob Blakely of Canada’s Building Trades Unions. ALBERTA: Paul Cashman of the Alberta Roadbuilders & Heavy Construction Association forecasts a lean year. “There was a lot of overbuilding before the recession hit (in 2014), and a lot of office and industrial space is still coming onto the market. It’s going to take time to absorb that capacity.” Infrastructure projects such as Calgary’s Ring Road and Edmonton’s Yellowhead Trail Freeway have “acted as a shock absorber,” Cashman added. Blakely

said the fallout from TransCanada nixing plans to build its Energy East pipeline will be significant. “With nothing new on the go we’re going to be much worse off.” He added that “a couple of the biggest shut-downs that Alberta has ever seen” — including the Fort Hills oil sands project north of Ft. McMurray — will employ many people but for just a limited time. PRAIRIES: Potash is doing well enough in Saskatchewan, but the province is affected by low oil prices and the loss of Energy East, said Blakely. He added Manitoba has two significant hydro projects underway — Keeyask and Keewatinoow — plus some high-rise and office tower work in Winnipeg. ONTARIO: Proponents have long talked about the Ring of Fire. This potential mining hotspot in the northwest would need roads and other infrastructure. Will 2018 be its year? Andrew Cheatle of the Prospectors & Developers Association of Canada said his hopes are “within the next decade if not sooner.” Still, mining remains strong from Thunder Bay through to Sudbury and the region is holding its own, though the cancellation of Energy East means no on-sitemag.com / 29

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2018 FORECAST new pumping stations. The Toronto area and southwestern Ontario are experiencing a strong building boom and large public transit projects are underway there and in Ottawa. QUEBEC: Plan Nord, a 25-year natural resources extraction strategy, remains a major source of optimism. Cheatle said he sees work commencing within the next few years. Blakely said the province is vying for LNG activity, and there’s “a real question” of what’s going to happen to refineries in Quebec with the failure of Energy East. Infrastructure is strong in populated centres, with significant road and bridge work, including the new Champlain Bridge in Montreal. “Montreal is busy because Montreal is always busy,” said Blakely. MARITIMES: Blakely said the loss of Energy East dashed refinery hopes in New Brunswick, but some smaller mine projects remain underway and there’s potential hydroelectric work with NB Power wanting to reinvigorate the Mactaquac dam. In Nova Scotia, there’s significant commercial-institutional work in the Halifax area and ongoing activity in the shipbuilding sector. Newfoundland and Labrador is holding its own with Husky Energy following on the footsteps of Hebron with a planned $2.2-billion offshore oil project. Iron ore and nickel mining also offer promise, a Vale smelter is nearly completed, and the Muskrat Falls hydroelectric project is ongoing.

THE NORTH: Nunavut, the Northwest Territories and the Yukon are largely sustained by mining and modest infrastructure activity. Work on the Nanisivik Naval Facility on Baffin Island holds some promise and Iqaluit wants to replace diesel with more eco-friendly generation, but these aren’t big jobs. “When you have small numbers of people you have a tough time building anything,” explains Blakely. In 2017, the federal government committed to the Yukon Resource Gateway Project. PDAC’s Cheatle said this includes upgrading roads and is designed to enhance existing infrastructure, help access known deposits and open up areas for economic development.

Vacancy rates vary BY SAUL CHERNOS

D

owntown office vacancy rates in Calgary were as high as 27 per cent compared with just 4 per cent in Toronto and 8 per cent in Vancouver this past fall. Altus Group, a real estate services firm, tracks real estate development in some of Canada’s biggest cities, and Ray Wong, a company vice-president, said he expects some flattening in Calgary’s rate in 2018. In Vancouver, on the other hand, there’s simply not enough space to meet demand. “Vancouver is surrounded by ocean and mountains and there’s a shortage of available land,” Wong said. He added that a couple of new office projects should alleviate some demand constraints in the next year and a half. The economy, of course, is a direct factor, too. “As people gain employment, that has a positive impact on the retail sector with increased demand and spending of sectors impacting on retail and commercial store demand,” adds Wong. Other cities mostly fell in between. Halifax was 15 per cent, Edmonton was 13.4 per cent, Ottawa was 11.4 per cent, Montreal was 11 per cent and Quebec City was 8.4 per cent. Generally, the percentages were higher for areas outside a downtown, and Wong cautioned there is nuance in the numbers. For instance, he pointed out, Montreal’s rate sounds high but the current office vacancy rate is expected to decrease based on demand in the technology and business services sectors. “Montreal’s tech sector, especially on the gaming side, has been growing, so that 11 per cent rate is a little bit misleading because there’s good demand in that marketplace.” For the coming year, nationally, Wong said he anticipates continued demand from the commercial sector. “It should go at the same pace — not exorbitant growth but a good reasonable demand for space.”

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EXPLORE THE NEW SUPER DUTY®. FORD.CA/SUPERDUTY Vehicle Vehi cle may be shown shown wit with h option op onal al equip equipment ment. *Maxi Max mum m towi owing ng capac c pac a ity of 32,50 32,500 0 llbs on F-4 F-450 5 DRW 4x4 4 with 6.7L V8 dies diesell engin engine. e When n prop properly erly equ uippe ip d with with avail v able factory-ins nstall talled ed equip q men ment. Cl Class as is Full-Size e Heav y Duty Heavy Duty Picku Pickups ps over over 8,50 8,500 0 lbs. lbs. GVWR GVWR base based d on For Ford segmen segmentati a on. on ***When pro properl p y equipp uipped. d Maximum mum payl pay oad off 7,630 7,630 lbs on F-350 DRW 4xx2 w with 6.2L 6.2L V8 gass engin engine. Class is F Full u -Siz -S e Heavy Duty ty Pickups over 8,500 8,50 0 lbs. lbs. GVWR GVWR base based d on For Ford d segmen segmentati tation. on. ***Max Maximum u dies diesel el torqu torque e of 925 lblb-ft ft on on FF-250/ 0/F-35 F-350 0 with with 6.7L 6.7L V8 diese diesell engin engine. When prop properly erly equ equippe ipped. d. Class Class iss Full Full-Siz -Size e Heavy Dutyy Pic Pi kups ove ov r 8,500 lbs. GVWR R based base d on For Ford d segmen segmentati tation. n. ¤Maxi Maximum mum gas torq torque ue of of 430 430 lb.-ft lb.-ft on F-25 F-250/F0/F-350 350 with 6.2 6.2LL V8 gas enggine. e. Wh When en prope properly l equi equipped pped. Class is Fullul Size Hea eavy Duty Pick P ups over 8,5 8,500 00 lbs. lbs. GVWR based on Fo Ford rd segme gm ntat tation. io ^ 20 0a avail vailable able cla class-e ss-exclu xclusive sive fea feature turess (Adap (Adaptive ve crui cruise se contr control ol and and colli collision sion war wa ning ng with hb brake support, ort Adaptive steering, BLIS (Bl (B ind nd Spot p Inf I ormation tion Sys System) tem wit w h tr traile ailerr ccovera verage,, BoxL B ink k wit with premium um locking k cleats, ats FactoryFact ory-inst installe alled d custom customer-p er-place laced d traile trailerr camera camera, In Inatable ata rear outboa rea tboard rd safet safety belts, ts, Mul Multico ticontou nto r front seats with Active e Motion Motio , Power Pow deployab yable le runni running board ards, Power we Scope po owerwer telescop co ing n and power-fo f ldingg trailer tow ow mirr mirrors, ors, Rem Remote tail ailgate gate rel re ease wit with h power power lock ck,, Flat Flat load load o oor, r, Stowa Stowable ble loading o ng ramp ram s, SYNC Y 3, Tailg Ta ate step, Traile Tra r revers v e guidan ance ce, Trai T ler tire pressure e monitoring mo system (TPM MS), S) Up to 7 avai ava lable cam cameras, Utility lighting ligh ting sys ystem tem (LED sid side-m e-mirror rror spo spotlig tlights, hts, Sma Smart rt trail trailer er tow tow conn connector, Collap Colla sibl sible e underder-seat sto torage rage tha that folds d into nto at lo oad oor). Class ass iss Full Ful -Size e Pi Pickup cku s over over 8,500 8,500 lbs GVW GVWR. R. Driver-assist D t fea feature tures arre su supple ement m al and do not not repla replace ce tthe drive river’ss atte a ntio ntion, n, judgm judgment ent and need ne to con control the vehi vehicle. cle ©20 2017 Ford Moto Motorr Company off Can Canada, ada Limited. All rights h reserved.

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The right

TRUCK

2018 PICKUP TRUCKS REPORT You always want “the right tool for the job,” and that includes one of a contractor’s most important tools, the work vehicle. It can be hard to choose with so many on the market, but that also gives you a wide range of sizes, engines, features and capacity so you can find the one that’s best for you. Full-size trucks may seem like an obvious choice, but if you do a lot of light-duty jobs, you may also want to consider adding a midsize to your fleet. This year, we’ve included full-size and compact cargo vans as well. BY JIL MCINTOSH

Here’s what’s available for the 2018 model year. 32 / DECEMBER 2017

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FORD Ford gives its F-150 a makeover for 2018, including an all-new 2.7-litre turbocharged engine, new front-end styling, and a maximum 13,200-lb. towing capacity. The F-150 is available in Regular Cab, SuperCab or SuperCrew, each with two box lengths. Engine choices are a 3.3-litre V6; 2.7-litre EcoBoost V6 making 400 lb.-ft. of torque; two versions of a 3.5-litre EcoBoost V6 making 470 or 510 lb.-ft. of torque; and a 5.0-litre V8 making 400 lb.-ft. All use a 10-speed automatic transmission. Later in the model year, the F-150 will also be offered with a 3.0-litre Power Stroke V6 diesel engine. Available features on F-150 include blind spot monitoring that accounts for a trailer, 360-degree camera, and lane-keeping assist. Maximum payload tops out at 3,270 lbs. Redesigned with an aluminum body for 2017, the Super Duty comes as the threequarter-ton F-250; one-ton F-350 with single or dual wheels; and 1.5-ton F-450. Two engines are available: a 6.2-litre V8 making 430 lb.-ft. of torque, or 6.7-litre Power Stroke turbodiesel with 925 lb.-ft. of torque. The Super Duty tows a maximum 21,000 lbs. conventional, and 27,500 lbs. with fifth-wheel. Ford offers two work vans. The full-size Transit comes in 150, 250, 350, and 350 Heavy-Duty, in three lengths and three roof heights. Engine choices are a 3.7-litre V6, 3.5-litre EcoBoost V6, or 3.2-litre Power Stroke five-cylinder diesel. The E-Series Econoline van, which the Transit replaces, is being phased out and is only sold as a cutaway or chassis cab. The compact Transit Connect Cargo Van uses a 2.5-litre four-cylinder engine with six-speed automatic transmission. Its maximum payload is 1,610 lbs., and it offers up to 4,219 litres (149 cu.ft.) of storage space.

F-150 a makeover for 2018, including an all-new 2.7-litre turbocharged engine, new front-end styling, and a maximum 13,200-lb. towing capacity.

Âť

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GENERAL MOTORS

Chevrolet or GMC models come in Regular, Double, or Crew Cab.

Almost all of General Motors’ work vehicles are available as either Chevrolet or GMC models. They’re mechanically identical but have slightly different styling, and the list of features in each trim level varies by brand. The full-size Chevrolet Silverado and GMC Sierra are mostly unchanged from 2017. All models now receive a standard rearview camera, and the tire pressure monitoring system has a “fill alert” to indicate you’ve added enough air to a tire. The eAssist option, a mild hybrid system that provides an electric power boost to the gasoline engine, is available across the country following its earlier, limited introduction. Both brands come in Regular, Double or Crew Cab, with a 4.3-litre V6; 5.3-litre V8 making 383 lb.-ft. of torque; or 6.2-L V8 at 460 lb.-ft. All engines have cylinder deactivation for fuel efficiency. Maximum towing capacity is 12,500 lbs. Heavy-duty models come in 2500 or 3500 configuration, with

a 6.0-litre V8 making 380 lb.-ft. of torque, or 6.6-litre Duramax V8 diesel at 910 lb.-ft. Maximum towing capacity is 20,000 lbs. conventional, and 23,300 lbs. for fifth-wheel. Midsize truck models are the Chevrolet Colorado and GMC Canyon, with 2.5-litre four-cylinder, 3.6-litre V6, or 2.8-litre four-cylinder turbodiesel, which makes 369 lb.-ft. of torque. Maximum towing capacity is 7,700 lbs., while payload tops out at 1,574 lbs. The company’s full-size work van comes as the Chevrolet Express or GMC Savana. Available in 2500 configuration, it uses a 4.8-litre V8, 6.0-litre V8, or 2.8-litre four-cylinder Duramax diesel that makes 369 lb.-ft. of torque. It can tow up to 10,000 lbs., with a 4,192-lb. maximum payload. Chevrolet also offers a compact van, the City Express, which is a rebadged version of Nissan’s NV200. It uses a 2.0-litre four-cylinder engine, with a top payload of 1,500 lbs.

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OnSite_

IT’S TOUGH TO EXTEND DRAIN INTERVALS TO 750 HOURS BUT NOT FOR DURON™ With DURON protecting your engine you could achieve drain intervals* of up to 750 hours in even the most demanding of operations. That’s the kind of drain intervals we call tough. And it’s all proven in the real world with field testing on tough jobs like yours.

WE’VE TALKED TOUGH. NOW WE’VE PROVEN IT. DURON.™ THE TOUGHER. THE BETTER.™

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* Extending drain intervals should always be undertaken in conjunction with an oil analysis program. ™ Owned or used under license.

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HONDA Designed primarily for consumers, Honda’s SUV-based pickup could be a good choice as a light-duty fleet addition for service calls. It uses a 3.5-litre V6 making 280 horsepower, with a front-biased all-wheel-drive system that sends torque to the rear wheels as needed. The Ridgeline can tow a maximum of 5,000 lbs., with top payload of 1,570 lbs. Its bed is made of non-corrosive composite material and includes a locking trunk under it, while its tailgate opens both conventionally or sideways like a door, making it easy to access the load. The interior also contains considerable storage space, and the rear seats are on folding legs so that items can be placed under them while passengers sit up top. Honda’s SUV-based pickup is ideal as a light-duty fleet addition for service calls.

MERCEDES-BENZ The German automaker offers two vans, both of them available in cargo configuration, for those who prefer an alternative to a pickup truck. New for 2018, all Mercedes-Benz cargo vans include a standard rearview camera. The Sprinter, which was the first European-style work van to come to Canada, comes in 2500 and 3500 ratings, both in two wheelbases and three body lengths. The 2500 offers standard and high roof heights, while the 3500 comes in high roof or super-high roof. All models use a 3.0-litre diesel engine making 325 lb-ft. of torque, with a five-speed automatic transmission. Unique among current work vans, the Sprinter is also available with fourwheel drive. The Metris is sized halfway between a compact and full-size. With an overall height of 189 cm (74.4 inches), it’ll fit into underground garages where taller vans might not fit, along with a tight turning radius. It uses a turbocharged 2.0-litre gasoline engine with seven-speed automatic transmission, making 208 horsepower and 258 lb.-ft. of torque.

Some contractors prefer Mercedes-Benz cargo vans as a pickup truck.

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NISSAN

Both the Titan and Titan XD come in Single Cab or Crew Cab configurations.

Nissan’s commercial offerings are virtually unchanged for 2018, save for some minor trim tweaks. The largest pickup is the Titan XD, which Nissan says “spans the gap” between half- and three-quarter-ton trucks. It’s rated at a maximum 12,038-lb. towing capacity, and while some half-tons can tow more, the XD handles it easily and could be a better choice for consistent towing near the limit. The XD uses a 5.6-litre V8 making 401 lb.-ft. of torque, or 5.0-litre Cummins V8 diesel, rated at 555 lb.-ft. The Titan half-ton also uses the 5.6-litre V8, rated here at 390 horsepower and 394 lb.-ft. of torque. It offers a maximum towing capacity of 9,220 lbs., and payload of 1,610 lbs. Both the Titan and Titan XD come in Single Cab, in 4x2 or 4x4, or as a

Crew Cab in 4x4 only, and both are covered bumper-to-bumper for 5 years/160,000 km. Nissan also offers the midsize Frontier pickup, with 2.5-litre four-cylinder or 4.0-litre V6 engine, and a maximum towing capacity of 6,700 lbs. It’s available as a King (extended) Cab with standard bed and in two- or four-wheel drive, or Crew Cab in two bed lengths, and in 4x4 only. Two vans are available. The full-size NV uses a 4.0-litre V6 or 5.6-litre V8 and comes in 1500, 2500 or 3500 configuration, with standard or high roof, and a maximum payload of 3,890 lbs. The compact NV200 uses a 2.0-litre four-cylinder engine, with a top payload of 1,480 lbs.

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PAVING THE FUTURE The industry’s #1 source for the latest asphalt education. Highlights include: • Leadership in the 21st Century • Taking the High Road: Good Community Relations for the Asphalt Industry • Asphalt Plant Safety: The Basics • Energy Efficiency Through Best Practices at the Plant • Best Practices for Residential and Commercial Paving • Using Technology to Stay Ahead in the Asphalt Industry

And more from a selection of over 60 sessions!

March 6-8, 2018 • Houston, TX, USA Co-located with

Register in advance and save over 35% at www.worldofasphalt.com

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17 3:38 PM 10:16 AM

RAM

The Ram 1500 comes in Regular, Quad and Crew Cab with three bed lengths.

Offering its 1500 half-ton pickup, and the heavy-duty 2500 and 3500 models, Ram is also largely unchanged for 2018. There are new top-line Limited Tungsten Edition trim levels, new connectivity with a WiFi hotspot, and a remote switch in the bed to turn on the LED box lights. The Ram 1500 comes in Regular, Quad and Crew Cab with three bed lengths, while HD models are Regular, Crew or Mega Cab, in two bed lengths. All trucks come in 2WD or 4WD. Engine choices in the 1500 are a 3.6-litre V6; 5.7-litre Hemi V8; or 3.0-litre V6 EcoDiesel, making 420 lb.-ft. of torque. Both the 2500 and 3500 use the 5.7-litre V8; a 6.4-litre Hemi V8; or 6.7-litre Cummins inline six-cylinder diesel. The Cummins diesel can be ordered with a manual transmission if desired. Depending on the truck and transmission, the diesel makes between 660 to 930 lb.-ft. of torque. Maximum towing for the Ram 3500 tops out at 31,210 lbs.

Available features on certain models include locking bedside RamBox storage boxes, a fold-out flat rear floor, and four-corner or rear-levelling air suspension, although its weight cuts into the payload. Ram also offers two vans, the full-size ProMaster and compact ProMaster City. The ProMaster comes in 1500, 2500 and 3500 configuration, with three wheelbases and two roof heights, along with chassis cab or cutaway. Itâ&#x20AC;&#x2122;s the only full-size with front-wheel drive, which gives it a low step-in and floor height, and its square styling maximizes cargo space. A backup camera is standard. Engine choices are a 3.6-litre V6 or 3.0-litre inline four-cylinder EcoDiesel. The compact ProMaster City is also front-wheel drive and uses a 2.4-litre four-cylinder with nine-speed automatic. Maximum payload is 1,901 lbs.

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TOYOTA

The Tundra comes in Regular or Double Cab in two- or four-wheel drive, and as the CrewMax in 4x4 only.

Toyota makes a few trim changes to its full-size Tundra for 2018. All models now come with the company’s Safety Sense-P, which includes adaptive cruise control, lane departure alert with steering assist, automatic high-beam headlamps, and pre-collision braking with pedestrian detection. There’s also a new grille and headlamp design, LED daytime running lights on all models, and a TRD Sport Package edition. The Tundra comes in Regular or Double Cab in two- or fourwheel drive, and as the CrewMax in 4x4 only. The 4x4 Double Cab offers a 4.6-litre V8 making 310 horsepower and 327 lb.-ft. of torque, while all other models use a 5.7-litre V8, rated at 381 horsepower and 401 lb-ft of torque. Towing capacity ranges from 6,493 to 10,196 lbs in 4x4 configuration, and with a maximum payload of 1,710 lbs.

Standard features on all trim levels include a rearview camera, touch-panel audio, locking tailgate, heated mirrors, and manual-levelling headlights. Toyota’s smaller Tacoma pickup also gains the Safety Sense-P program on all models. Available in Access Cab in 4x2 or 4x4, or as the Double Cab in 4x4, the Tacoma comes with a 2.7-litre four-cylinder or 3.5-litre V6, depending on trim and configuration. While primarily considered a consumer truck, its smaller size may work for several applications.

Jill McIntosh is an Oshawa, Ont.-based automotive freelance writer. Send comments to editor@on-sitemag.com.

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DECEMBER 2017

WORLD OF CONCRETE: ANTICIPATION BUILDS PG. 43

IN THIS ISSUE: www.on-sitemag.com

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49 First Annual Canadian Concrete Expo

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WOC PREVIEW

Anticipation builds for World of Concrete 2018



World of Concrete 2018 Trade Show: January 23 – 26 Seminars: January 22 – 26 Location: Las Vegas Convention Center

EDUCATION PROGRAM

The 2018 World of Concrete Education Program will include everything from interactive workshops and specialized seminars to hands-on, skill-building sessions. Seminars equip field personnel, project leaders, supervisors and owners with the latest knowledge in every facet of concrete and masonry. 3-hour seminar tracks include: • Concrete Fundamentals • Concrete Production • Concrete Floors & Slabs • Decorative Concrete • Business & Project Management

WOC Exhibit Hall Hours Tuesday-Thursday, January 23-26 9:30 am -5:00 pm Friday, January 26 - 9:00 am - 12:00 pm

T

he most important annual international event of the year for concrete and masonry professionals, WOC 2018 expects to attract 60,000 professional registrants and 1,500 leading suppliers from around the world. Taking over the Las Vegas Convention Centre from January 22 to 26, it will be the largest World of Concrete in nine years. This event will continue to bring international buyers together with U.S. exhibitors to expand business domestically and overseas. For the 13th consecutive year, the U.S. Department of Commerce has selected World of Concrete as a participant in the International Buyer Program (IBP). WOC draws significant attendance at each event, working with U.S. Commercial Services posts from around the world. World of Concrete welcomes international exhibitors to sell their concrete- and masonry-related products and services, as well as international attendee delegations from across the globe to network, test drive equipment, discover new products and services, and benefit from a world-class education program.

90-minute seminar tracks include: • Business Leadership & Management • General Business • Concrete 101 • Engineering • Masonry • Residential Construction • Safety & Risk Management • Technical Updates New for 2018: WOC competitions and exhibits will be located to the Bronze Lot, next to South Hall. In addition to the exhibitors in this new area, returning event favorites include the John Deere Operator Challenge, the Western Star Trucks Get Tough Challenge, and the SPEC MIX BRICKLAYER 500 World Championship and much more. on-sitemag.com / 43

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WOC PREVIEW

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STRENGTHEN

YOUR

CORE

S O LI D TO TH E CO R E See how the market is evovling at World of Concrete. It’s the only annual international commercial construction event dedicated to therewards. concrete and We provide the foundation. You reap the masonry industries. And, jumpstarts each new year by supplying Come to World ofitConcrete, the largest annual you with the latest innovations, event expert know-how and best new productsand to finish your work international dedicated to concrete masonry faster, better and more profitably. everything you need from the start of each professionals. Leave withForthe core knowledge and job to its successful completion, you covered. equipment you need towe’ve wingot more jobs and strengthen your business. This is your world.

REGISTER TODAY www.worldofconcrete.com REGISTER TODAY www.worldofconcrete.com

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JANUARY 23-26. 2018 SEMINARS: JANUARY 22-26 LAS VEGAS CONVENTION CENTER LAS VEGAS, NV, USA A selected participant in the A selected participant in the International Buyer Program International Buyer Program

2017-12-07 2017-09-2111:16 9:33AM AM

WOC PREVIEW

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106847 OnSite_

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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2017-12-07 7/25/1711:16 2:58 PM 2017-08-01 2:49AM PM

WOC PREVIEW FEATURE AREAS ON THE SHOW FLOOR • The Producer Center: a marketplace of materials, equipment and demos for concrete producers. • Material Handling: offering trucks, excavators and more for material delivery,

distribution, concrete placement, and earth moving. • Concrete Repair & Demolition: housing a display of surface preparation equipment, scarifying, sawing equipment, concrete

repair, and other demolition products. • World of Masonry: showcasing products, tools, information, and technology for masonry professionals. • Technology for Construction: featuring the newest products and tools for the commercial construction industry from top information technology and systems providers. • Concrete Surfaces & Decorative: showcasing the popularity of decorative concrete for both commercial and residential applications including concrete coatings, waterproofing products and technologies and more. • Precast: focusing on precast products, technologies and equipment including coring machines, pipe unloaders, precast forms, above/below ground precast, concrete pipe, manhole and septic tank equipment, and more. • Concrete Masonry and Concrete Reinforcement: Concrete Masonry will showcase everything for the producers of concrete masonry, including block, segmental retaining wall units, veneer, pavers, and roof tiles.

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.

800-461-9589

youtube.com/husqvarnaCP

EDUCATION SESSIONS

170+ Education offerings

80+ New sessions

WWW.HUSQVARNACP.COM/CA-EN/CONTACT-US/ facebook.com/husqvarnaconstruction



• Concrete Reinforcement: featuring the leaders in concrete reinforcement showcasing reinforcement bending, cutting, straightening, and fabricating machinery. There will be plenty of action outside

HusqvarnaCP_Americas

Copyright © 2017 Husqvarna AB (publ.). All rights reserved. Husqvarna is a registered trademark of Husqvarna AB (publ.).

140+ Industry speakers

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CANADIAN CONCRETE EXPO

First annual Canadian Concrete Expo is coming to Toronto February 2018 The Canadian Concrete Expo (CCE) is an industry only trade show that will feature more than 250 exhibiting companies on 200,000 sq. ft. of exhibition space. CCE will foster commerce, partnerships, education, and face-to-face meetings. Exhibitors from across the country will be able to perform on-site product comparisons and research the latest concrete technology. Attending industry professionals will be attracted to CCE knowing every exhibiting company provides equipment, products and/or services to a national or regional market in Canada.

LETTER FROM THE PRESIDENT:

W

e started researching this project back in the summer of 2016 and reserved the Hall space at the International Centre the following September. From there, many customer survey calls were made to potential exhibitors and companies that might attend the show along with plenty of brain storming sessions. Here we are, almost 19 months after the idea was hatched, hosting the first annual Canadian Concrete Expo (CCE). Our intent from the very beginning was to create an inclusive national trade show that served the entire Canadian concrete construction industry. CCE was created to provide an opportunity for those working in concrete construction, to attend a national show, where they could see equipment, products and services from exhibitors that all currently service the Canadian market. All conference sessions, standards, and codes are related to the concrete industry in Canada, and we believe it will be more cost effective for many to reach the International Centre then attend large International Shows in other countries. CCE is about creating commerce, networking and learning with companies and associations already familiar with the challenges and benefits of the concrete industry in Canada. Our team worked very hard explaining our concept to related associations from coast to coast and the result has been overwhelming for our first year. We have received tremendous support from international, national, provincial and municipal concrete related and construction associations covering all the Atlantic provinces to BC and the Vancouver Island Construction Association and every province in between.

We certainly appreciate the massive support CCE has received from across the country. Many of the associations are providing timely and topical educational sessions at the show and will have exhibit space to interact with members and discuss the value of being a member. We would like to thank our Title Sponsors, Building Point Canada and Symons by Dayton Superior, plus our Platinum Sponsors, Lafarge Canada Inc., TILT WALL and Lehigh Hanson for supporting this show and believing this project was long needed for the market. There are more than 50 supporting associations and exhibiting companies that have sponsored or endorsed CCE that have placed their logo on the home page of the CCE website. Thank you to every one of you and to the over 200 exhibiting companies that believed in the excellent team we have at 20/20 Show Productions Inc. We look forward to opening our doors on Wednesday, February, 7th from 9am-5pm and Thursday, the 8th from 10am-5pm. To view the full list of exhibiting companies, sponsors, conference sessions, networking events, product demonstrations and/or register to attend, please visit CanadainConcreteExpo.com. We certainly hope you will join us at CCE and please bring all members of your team that can benefit your company by attending. Sincerely Stuart Galloway President on-sitemag.com / 49

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CANADIAN CONCRETE EXPO WHO WILL ATTEND CCE?

Product Spotlight VERSATILE CUT-OFF SAW The STIHL TS 420 is a light 3.2kW cut-off saw with a 350 mm cutting wheel for use on all types of jobs. The long-life air filter system with cyclone air routing ensures an extremely long filter service life and increases service intervals. Low vibration levels makes working with this model less strenuous. With a power output of 3.2kW, it weighs 9.6 kg and has a max cutting depth of 125mm.

OPTIMIZED ROTARY HAMMER BITS As cordless tools continue to dominate the jobsite, it becomes more important to team them up with optimized accessories. Bosch Bulldog Xtreme SDS-plus Rotary Hammer Bits are now optimized for use with cordless power tools based on a robust two-flute design that ensures great speed in dust removal with less potential for binding. The Bulldog Xtreme line is full-head carbide for bits up to 5/8 in. that delivers 4x life drilling in concrete with rebar, yet offers maximum drilling speed and precision. Advanced geometry ensures performance with less carbide wear. Bits beyond 5/8 in. feature a four-cutter design. The overall flute design of the bit enhances dust removal, reduces operating temperatures and reduces bit stress in concrete and rebar.

NEW DEMO ROBOT ADDED TO THE FAMILY Husqvarna Construction Products’ newest remote-controlled demolition robot, the DXR 140, is the smallest and lightest member of the family. Available with a 14.75 hp or 20.12 hp motor, the DXR 140 allows the operator to use up to 100 per cent of the breaker’s force. The power output and small design allow it to work in restricted spaces where the substrate requires a lightweight machine that is powerful enough to finish the job. With a reach up to 12 feet, including breaker, the DXR 140 handles a variety of jobs.

• Concrete/Ready Mix Producers, Concrete Pumping Contractors, Precast/Prestressed Manufacturers •

Contractors for Concrete Placement, Finishing, Flooring, Drilling, Sawing, Restoration, Repair, Demolition, Recycling

• Developers and General Contractors for all Concrete Structures, including: High-Rise, Commercial, Industrial, Residential, Institutional, Roads, Highways, Bridges, Sewers, Infrastructure, Agricultural • Masonry Construction Contractors – Aggregates Producers • Architects, Engineers, Specifiers • Municipal, Provincial, and Federal Government representatives

VACUUM LIFTING SYSTEM FOR SKID STEERS The SL 2 Subcompact Vacuum Lifting System from Vacuworx is the ultimate skid steer attachment for concrete contractors. Featuring all-aluminum construction, the patent pending design has a hydraulically driven vacuum pump and can be easily attached to any skid steer or compact tool carrier. Quick-connect hydraulic hoses make switching attachments fast and easy so you can maximize productivity on the job. A factory pre-set flow control valve ensures optimal performance. The SL 2 weighs just 98 lbs. (without mounting plate) but has a lifting capacity up to 2,700 lbs.

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FINANCE By Dan Kelly

Anatomy of a tax fight a fight that’s far from over

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ou can’t blame business owners for feeling like they’re being bombarded by government. Increased EI premiums, new environmental levies, minimum wage hikes: announcements about new taxes and regulations became a common occurrence in 2017. But perhaps the most significant tax announcement of the year — maybe the most significant in decades — came in the dead of summer, when Finance Minister Bill Morneau introduced a series of proposals that would dramatically change the way small businesses in Canada are taxed. As soon as the proposals were announced, the Canadian Federation of Independent Business (CFIB) began consulting tax professionals and surveying business owners to get an understanding of how these tax changes would affect small business owners and their families. What we learned was quite alarming. The proposals if implemented would have restricted small business owners from sharing income with family members, hiked taxes on some investments, and would have made it more difficult for entrepreneurial families to transfer their business to their sons and daughters. And, contrary to the government messaging (which seemed to characterize small business owners as fat-cat tax cheats), we learned that these changes would have hurt the vast majority of middle-income business owners including those who earn as little as $50,000 in annual income.

OUR BIGGEST TAX FIGHT IN DECADES On behalf of our 109,000 members, CFIB sprang into action. We fielded hundreds of calls, surveyed our members, launched alerts and petitions and helped share information through web posts, social media campaigns, webinars and hundreds of media interviews. Our advocacy teams met one-on-one with MPs, cabinet ministers and premiers from across the country ensuring that they all understood the ramifications of these proposals. And we presented our findings to both the House and Senate committees. My 400 staff at CFIB lived and breathed the file for months. We also helped form a coalition of more than 75 business groups representing hundreds of thousands of small businesses across the country with one unified message: take these proposals off the table and, instead, work with the business community to address shortcomings in tax policy affecting private corporations. The outcry by individual businesses was simply incredible. Business owners took direct action, including reaching out to their MPs, setting up special websites, expressing their outrage on social media and packing local meeting halls.

THE OUTCOME Following a hurried 75-day consultation period, the government retreated — at least partially. Not only did they put aside their rhetoric about independent business owners being ‘tax cheats,’ they reinstated a 2015 election promise to reduce the small business corporate tax rate to 9 per cent. That promise, which had been abandoned in 2016, will help return hundreds of millions to small business owners. The government also made some important changes to its original proposals. Most notably, it dropped provisions to limit the use of capital gains in business succession. It said it will allow small businesses up to $50,000 in annual income from passive investments (the equivalent of a 5 per cent return on a $1-million investment) and clarified some of the rules around sharing income with family members. Are the changes enough? The short answer is no. While the government has backed away from its original bluster, these are still new tax measures that will likely make it more difficult for business owners to grow their businesses. Specifically, the $50,000 threshold for passive is still very low: barring any further concessions, larger passive investments will be largely taxed away, denying a growing business the resources it needs to expand or to buy that new piece of equipment needed to improve its productivity. Also, the current provisions around sharing business income among family members involved in the firm are still worrisome. If the provision is passed, as is, it will be up to the Canada Revenue Agency to determine if the spouse or adult children made a “meaningful” contribution to the business. We are still fighting for the government to release an impact assessment on all remaining tax changes and allow for an additional period of consultation with small business owners before making any changes.

THE TAKEAWAY: What this tax fight has done is demonstrated to decision-makers that there is a growing sense — on the part of entrepreneurs — that governments don’t understand them or appreciate their contributions to the economy. This is significant. The tax fight was also evidence that there is strength in numbers. What would the tax proposals look like today had we not pushed back?

Dan Kelly is president and CEO of The Canadian Federation of Independent Business. Send comments to editor@on-sitemag.com.

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SOFTWARE By Jacob Stoller

How safe is your data?

Major breaches like Equifax make headlines, but the real threat for contractors may be the smaller incidents

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n late October, just in time for Halloween, a Finnish security company, F-Secure, released a study involving the CEOs of 200 of the world’s largest corporations. Results show that 30 per cent have had their log-in credentials exposed, and 81 per cent have had some personal information, such as birthdates, home addresses, and phone numbers, leaked. Only 18 per cent had no information compromised. These numbers reflect an alarming trend. According to an FBI advisory issued last May, Business Email Compromise (BEC) increased by more than 2,000 per cent between January 2015 and December 2016, resulting in billions of dollars being stolen from businesses. Hacking, where attackers gain unauthorized access to IT systems, has become the dominant cause of data breaches, significantly outpacing accidental leaks, inside jobs, and lost devices. Theft is the primary motive. “More data and reliance on data means more incentive to steal it,” says Michael O’Neil, principal analyst of InsightaaS, “Data-related crime pays really well.” Hackers no longer need a lot of technical expertise, thanks to a robust third-party market in what’s known as the deep web. Here, one can acquire names, passwords, credit card information, “back doors” for breaching firewalls and software applications, and even tools for launching DDOS (Distributed Denial of Service) attacks capable of bringing down a major website. Information of high value is often auctioned off to the highest bidder.

UNDERSTANDING YOUR WEAKNESSES The growing frequency of hacking incidents means no company can afford to ignore the risks. Contractors are particularly vulnerable to a widely used method called social engineering. Here, hackers gain access to systems incrementally, that is, by gathering the necessary pieces of information from different sources. Details gathered from overhearing a conversation in a coffee shop, for example, might give a hacker enough information to impersonate an employee and ask for a password. Contractors are particularly vulnerable because they have a high turnover in their workforce and deal with many suppliers/partners, resulting in many potential information sources for hackers. Contractors, however, tend to be naive about security risks, notes Charles Cooper, founder and CEO of Huntsville, Ont.-based Muskoka Hydrovac and a former IT executive. For example, receptionists often volunteer details about employees that could lead to an identity theft. “This is something I notice a lot,” says Cooper. “When I call my

suppliers, people often give me far more information than I need. But when I explain the dangers of this to the company owners, their eyes glaze over.” Another vulnerability is that contractor’s IT networks have many potential access points, including handheld devices, equipment monitoring systems, site surveillance systems, and building management systems. In the widely publicized hack on Target in 2014, for example, a hacker gained network access through an HVAC control system.

MEETING THE CHALLENGE One of the least understood aspects of IT security, O’Neil notes, is that the ideal technology solution would be cost-prohibitive for any company, so there will always be risks. As well, security measures often require procedures that employees might find too restrictive. In both cases, senior management needs to decide which risks the company is willing to accept. “Governance is not the province of the IT department,” says O’Neil. “Governance comes from the board of directors.” While security needs to vary from company to company, the following practices are suggested as a bare minimum: Create a company policy of not telling outsiders more than they need to know for business purposes. Staying “tight lipped” is already a habit in industries such as banking – it needs to become one in construction. Mandate all employees change their passwords once a month. “A lot of people aren’t used to this, but it’s really a no-brainer,” says Cooper. Keep all software up to date. Many updates are released in order to plug potential security leaks. Develop a set of security requirements for cloud providers. While large providers like Amazon and Microsoft are well protected, smaller ones, such as the provider of a hosted specialty app, may not be. Intrusion detection and defense against DDOS attacks are two areas to cover. The key is to always remember that preventing leaks is essentially a people problem. Contractors are pretty good at preventing their trucks from being stolen – at least as much vigilance should be applied to data. And remember – if your systems are compromised, this may affect not only your company, but your customers and suppliers.

Jacob Stoller is principal of Toronto-based consultancy StollerStrategies. Send comments to editor@on-sitemag.com.

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RISK By David Bowcott

The value of disciplined project contingency development

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he primary defense against margin erosion is the project ultimately your balance sheet that will bear the costs of correcting contingency. Construction is not a predictable business, the unexpected event. and the project contingency is that all encompassing pool A foundation of disciplined contingency build out is capturing of capital dedicated to each project, which provides much as much data around contingencies used in previous projects. needed funding when the unexpected happens. The contingency is What caused the contingency to be eroded in the past and to what not profit margin while the project is at risk, rather it is a cushion of capital to protect the Any good contractor, from the prime contractor to the project margin. Any good contractor, from the prime contractor to the lowest-tier subconlowest-tier subcontractors, use project contingencies. tractors, use project contingencies. However, the criteria that separates good contractors degree? In order to accomplish this you need to have a very strong from great contractors relates to the methodology data strategy. Quite simply, when things go wrong on your project, they use to arrive at the ideal contingency. Those that and there are resultant unexpected costs, does your firm have a use a consistent and disciplined method when building out project consistent and disciplined approach to capture and aggregate contingency create options that allow them to win projects ahead this vital data? Is the data set robust enough so your firm can sort of those that throw all risk into a contingency bucket with minimal through the data easily and apply it to various projects you bid on effort or discipline. Before we get into the techniques used to arrive at a disciplined throughout the year? Are you using consistent risk event categories in order to make the data aggregation efforts easier and more contingency build out methodology, let’s do a quick recap of the effective? Key data variables like asset type, geography, and project capital sources that are used to fund the unexpected: delivery model could provide your firm with comprehensive insights Insurance and Performance Security – Required by contract or when setting future project contingencies. If you don’t have a well purchased by choice, insurance and performance security cover a thought out, 100-per-cent consistent methodology, you need to multitude of unexpected events including property damage, thirdmake the investment to develop one. Additionally, whenever possiparty property damage or bodily injury, design and professional ble, use the data of others to add to your repository. failures, environmental events, and contractor/supply chain failure. Once your firm has a best-in-class contingency build out Such insurances are dedicated to the project, or can be in the form strategy, you will be able to arrive more accurately at your projof the practice policies carried by the prime design firm, the prime ect contingency. Further you will be able to more creatively, and contractor and its respective supply chain. Of note, there is an efficiently manage contingencies. For instance, if you clearly break over-supply of insurance capital, and that means risks not traditionout the various risk events that are captured within the contingency, ally thought of as insurable can now be insured. you will see if there are less expensive options to finance those risk Funds of Others – Some unexpected events are the result of events. As an example, if you have a very high level of confidence other project stakeholder’s actions (or responsibilities others have as to how much of your contingency is related to weather events, via contract), as a result they are responsible to provide necessary you can now perform a cost-benefit analysis on the potential of funds to recover from the unexpected event. buying weather insurance. There are several new risk finance Contingency – The funds in excess of your project margin that options in the market and if you accurately break out your project are used to deal with the unexpected. Sometimes these funds are contingency, you will create efficiencies in your bidding process used and not recovered, but sometimes they are used to bridge that could mean the difference between winning and losing the finance until other funds are recovered (insurance, funds recovered project. from other parties). The projects overall contingency is made up of all contingencies carried by all parties to the project. Profit Margin – When recovery can’t come from sources David Bowcott is Global Director – Growth, Innovation & Insight, referenced above, you are left with eroding the project’s expected Global Construction and Infrastructure Group at Aon Risk Solutions. margin in order to correct for an unexpected event. Please send comments to editor@on-sitemag.com Balance Sheet – When the above sources are not an option, it is

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December 2017

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CONTRACTORS & THE LAW By Dirk Laudan

What is the holdback anyway?

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ne of the basic elements in builders lien law in British Columbia is the 10 per cent mandatory holdback. Anyone making a payment on account of a construction contract or subcontract is entitled to retain, from those payments, 10 per cent of the amount of the payment. The other side of the coin is that the lien liability of the owner, to subcontractors of the payee (the person from whom the holdback was retained), is limited to the same 10 per cent amount (or more, if more is actually retained). This means the person retaining the holdback should have, in theory, enough money to pay all of the liens of subcontractors hired under the payee. If you pay a subcontractor for work, you should not have to pay its suppliers again for the same work – you will have enough money in the holdback to pay them all. If necessary, the person retaining the holdback can get a court order that will remove the liens of subcontractors of the payee, and then all of those subcontractor liens are removed from title to the project property when the holdback is paid into court. The unpaid subcontractors can make claims against the holdback, but if there is a shortfall, they have to share among themselves. They cannot go after the land any longer. There are exceptions to the holdback requirement. For instance, there is no right to retain a holdback from a material supplier (unless the supplier also provides work), a consultant, or a supplier not directly involved in construction. There is an unresolved question about whether a holdback is necessary on a project that is immune to lien claims. There are other complications. One of them is that the holdback can be subject to claims by subcontractors who did not, in fact, file valid liens on title. This can makes life difficult for subcontractor lien claimants trying to access holdback funds in court, or to an owner considering whether the holdback can be released to the general contractor. Another complication came up in a recent court decision by Mr. Justice Dev Dley of the BC Supreme Court. In that case, Iberdrola Energy Projects Canada Corp v. FSE Energy, the general contractor had hired a boiler installer for industrial projects in Merritt and Fort St. James. The boiler installer ran into financial problems and failed to pay some of its subcontractors. As a result, to keep the project going, the general contractor advanced money to the boiler supplier’s subcontractors directly, at an increased cost. Then, the boiler installer defaulted and left the site. At that point, the general contractor had paid $62 million to the boiler supplier. Adding the amounts paid directly to subcontractors, however, the general contractor had paid more than $74 million. Several of the boiler supplier’s unpaid subcontractors filed liens, in significant

amounts. The central issue in the court decision was whether the holdback, which the general contractor had to pay into court to remove those liens from title was 10 per cent of $62 million, or 10% of $74 million. This made a difference of more than $1 million to the general contractor. Judge Dley’s reasoning was that the general contractor and the boiler supplier had simply changed the manner in which the subcontractors were paid. The contract had remained the same, except that the general contractor had agreed to pay a higher price, and payments were made by agreement in a different manner. The general contractor had a right, all along, to retain the 10 per cent holdback from all of the payments, including the ones that it made directly to subcontractors. To remove the liens from title, the general contractor had to pay into court the full 10 per cent amount it had been entitled to hold back, not just the lesser amount that it had actually held back. This decision is a logical application of the principles in the Builders Lien Act, harsh as it was for the general contractor. That said, it seems unfair for a general contractor taking additional steps to ensure subcontractors are paid to be punished by having to pay more into court. It does, nevertheless, provide a useful lesson in the law of builders liens. Rights and procedures under the BC Builders Lien Act are governed by strict rules. Failure to follow those rules, to the letter, jeopardizes rights and protections under the Act. A lien filed a day late is expired, and no judge, however sympathetic to an unpaid lien claimant, can revive it. A certificate of completion that is not formally requested, properly issued, and properly posted on site has no effect, and an owner who relies on it to release the holdback to the contractor may be put in difficulty. The holdback must be calculated precisely, following the wording of the Act. There are considerable benefits of builders lien rights to the construction industry. These include the luxury of entering into building contracts without having to provide, in contracts and related business arrangements, for security of payment. This reduction in transaction cost is enjoyed by both owners and builders. And builders and suppliers are more likely to obtain payment for the work they do. But these benefits come at a cost, which is the necessity of concerning oneself with the details and proper application of an intricate, unforgiving, and sometimes vexing law.

Dirk Laudan is a partner at the law firm of Borden Ladner Gervais LLP (BLG), practicing in the areas of construction, insurance and commercial litigation and arbitration. Send comments to editor@ on-sitemag.com.

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