On-Site December 2018

DECEMBER 2018

> IN SIDE < C

ONCR E ON-S TE IT E PG.2 9

2019 OUTLOOK THE 20,000-FOOT VIEW PG. 14

A LEAN APPROACH

LESSONS FROM MANUFACTURING PG. 20

SILICA EXPOSURE

WORKERS LEFT IN THE DUST PG. 37

LIFECYCLE RISK

BEYOND DESIGN-BID-BUILD www.on-sitemag.com

ONSITE_DEC18_LAZ.indd 1

PM #40065710 #40065710 PM

PG. 50

2018-12-04 10:22 AM

Daimler Detroit #91618 2018 DD8 Construction Print Ad

4C Spread, 16.25 x 10.75 Full Bleed

On-Site Magazine

DDC-EMC-ADV-0038-0118. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © 2018 Detroit Diesel Corporation. All rights reserved. Detroit™ is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.

91618_DET_2018_DD8_Construction_OnSite.indd 1 OnSite_Dec_DetroitDieselDPS.indd ONSITE_DEC18_LAZ.indd 2 1

2018-12-04 10:22 AM

Success runs in the family.

— THE NEW DETROIT ™ DD8 ™ ENGINE IN THE FREIGHTLINER 108SD — Meet the latest in a long line of legendary successful engines.

The new Detroit DD8 engine. Now available in the versatile Freightliner 108SD. The DD8 is specifically designed to keep businesses like yours on the move and profitable with an industryleading maintenance schedule. Featuring oil change intervals up to 3X better than the competition. Backed by our extensive service network, and equipped with Detroit Connect Virtual TM

Technician remote diagnostic service for maximum uptime.

SM

Demand an engine with history on its side. Demand Detroit. demanddetroit.com/engines/DD8

ONSITE_DEC18_LAZ.indd 3

11/16/18 2:52 PM 2018-12-04 10:22 2018-11-20 10:06 AM

18-KOBELCO-1235_OnSite_Multitask_RUN.indd 1 OnSite_Dec_Kobelco.indd ONSITE_DEC18_LAZ.indd1 4

7/17/18 11:58 AM 2018-10-12 2018-12-04 11:40 10:22AM AM

VOLUME 63, NO.7/ DECEMBER 2018

FORECAST 14 Looking ahead to 2019 Cautious optimism reigns, but labour woes as well as a possible investment chill pose threats

IN THIS ISSUE 7 Comment

14

Tech keeps trucking

10 News

The major developments

12 Construction stats The key figures

20 A Lean approach

24

What Toyota has to offer the construction industry

24 Picking up creature comforts On-Site kicks the tires in its 2019 pick-up truck report

COLUMNS 49 Software

37

The rise of automation

50 Risk A delivery model for the whole lifecycle

52 Law Credit in construction

51 Index of Advertisers

CONCRETE ON-SITE 33

37

43

Tech looks to earn its place at World of Concrete 2019

Varied regulations for hazardous silica dust threaten worker health

The Toronto show is expected to double in size after a successful premiere

January in the desert

Testing the limit

Canadian Concrete Expo returns

on-sitemag.com / 5

11:58 AM 11:40 AM

ONSITE_DEC18_LAZ.indd 5

2018-12-04 10:22 AM

CONGRATULATIONS TO OUR 2018 DIAMOND DEALERS! ASCO (TX) Crawler Supply (LA) Groff Tractor (DE, MD, NJ, PA) Hitrac (1974) (MB) J.R. Brisson Equipment (ON, QC) Kucera Group (ON)

Longus Equipement Inc. (QC) McCann Industries (IL, IN, MI) Monroe Tractor (CT, MA, NY) Nueces Power Equipment (TX) Redhead Equipment (SK) Sequoia Equipment (CA) State Equipment Inc. (KY, WV)

THANK YOU to those who go the extra mile to deliver outstanding customer service and support.

©2018 CNH Industrial America LLC. All rights reserved. CASE is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates.

Untitled-4 ONSITE_DEC18_LAZ.indd 1 6

2018-11-23 2018-12-04 10:46 10:22AM AM

COMMENT

Tech keeps trucking

Get the latest construction news!

Follow us on Twitter @OnSiteMag

Cruising along a pre-programmed route at Suncor Energy Inc.’s North Steepbank mine outside Fort McMurray, Alta., massive Komatsu haulers capable of trucking nearly 400 tonnes have been operating autonomously for months.

The oilsands heavyweight disclosed plans to bring 150 of the hulking autonomous vehicles online at several Canadian mines early this year. The rollout, which is among the most ambitious programs of its kind anywhere to date, is scheduled to take six years.

But the project won’t stand apart for long.

Self-driving pilots for consumer vehicles, for instance, have cropped up in many parts of the country and every facet of the economy has been working to take advantage of driverless technology.

Most experts agree – and the early evidence bears out – that industries such as mining, which operate in remote areas that can be easily cordoned off, will be the first movers on full vehicle autonomy. Controlled warehouse or manufacturing environments also lend themselves particularly well to vehicle automation.

As is often the case, construction won’t be the first on the ground. There’s little expectation that the disruptive wave could bypass the industry altogether though. Semi-autonomous systems have been burrowing deeper into job site equipment for years – from grade assist functions in excavators and dozers, to articulated trucks that monitor stability and payload to prevent rollovers, as seen in the latest Cat models.

Integrating fully autonomous vehicles certainly won’t become standard on work sites for several years, but the prospect is no longer science fiction. In fact, taking the well-studied safety and productivity gains into account, the shift seems largely inevitable.

As firms look ahead to 2019, there’s good

reason to begin testing the waters.

The quickly constricting labour market is one excellent excuse for doing so. The much-discussed, worrisome wave of 250,000 worker retirements over the next decade, as forecast by BuildForce Canada, will eventually force contractors to action.

Repetitive tasks are the low-hanging fruit for autonomous technology.

With this in mind, hauling material or building products around large job sites will likely prove a logical first step. Volvo Construction Equipment, for instance, is currently running a pilot project that uses fully autonomous haulers at a quarry in Sweden. The project, which is also testing out new electric equipment, has found significant early success, potentially reducing operating costs by about 25 per cent.

Autonomous grading operations also hold tremendous promise and could be rolled out in conjunction with haulers. For both applications, much of the technology necessary for full autonomy already exists.

Beyond earthmoving, the immediate future is murkier, but autonomous technology is likely to leave its footprint on every aspect of construction. I’d encourage you to dive deeper into topics such as GPS mapping, robotic masonry and modular construction in this issue’s Software column on pg. 49.

Ultimately, contractors are only as good as the gadgets in their toolkits. Just like it has with every major innovation – from the elevated dozer sprocket to drone mapping – it pays to be ahead of the curve.

David Kennedy / Editor dkennedy@on-sitemag.com

on-sitemag.com / 7

10:46 AM

ONSITE_DEC18_LAZ.indd 7

2018-12-04 10:22 AM

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

MEET OUR CONTRIBUTORS FOR THIS ISSUE

PUBLISHER | Peter Leonard (416) 510-6847 pLeonard@on-sitemag.com EDITOR | David Kennedy (416) 510-6821 dkennedy@on-sitemag.com

JACOB STOLLER / Principal, StollerStrategies

ASSISTANT EDITOR | Jillian Morgan (416) 510-5201 jmorgan@annexbusinessmedia.com

On the rise of Lean construction methods: “[Lean] is now practiced globally in virtually every sector, including healthcare, hospitality and government…

Construction, however, has been late to the game, in part because of the way the industry is structured.”

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

MARIO CYWINSKI/ Editor, Machinery and Equipment MRO magazine and member of the Automobile Journalists Association of Canada (AJAC) On what to watch for in the 2019 pick-up truck market: “Not long ago, pick-ups were seen as little more than dedicated work trucks. Those days are long gone… ‘Work’ trucks now come with more bells, whistles and options than ever before.”

DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On establishing a project delivery model that focuses on the entire lifecycle: “Design firms, contractors, subcontractors and suppliers are invaluable partners in an asset’s lifecycle, and it’s reasonable to assume their involvement at all stages could significantly improve the total cost of ownership.”

SIOBHAN SMALL, / Borden Ladner Gervais LLP On credit in the construction industry: “Credit can serve a role analogous to that of a performance bond… All contractors should therefore understand the basic function of letters of credit in a construction project.”

Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.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) Circulation email: apotal@annexbusinessmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-6875 or 416-442-2191 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@annexbusinessmedia.com Tel: 800-668-2374 Content copyright ©2018 by Annex Publishing & Printing Inc may not be reprinted without permission.

On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort.

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

MEMBER OF

Canadian Construction Association

8 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 8

2018-12-04 10:22 AM

OS_Au

ONE: › › › ›

Integrated Software Suite Trusted Set of Data Easy Way to Access Technology Partner for the Future

VIEWPOINT

ViewpointOne brings together the industry’s best finance and HR applications with fully integrated project management and mobile field tools to connect all the parts of your business.

VIEWPOINT.com/ViewpointOne

ONSITE_DEC18_LAZ.indd OS_Aug_Viewpoint.indd 19

© 2018 Viewpoint, Inc. All rights reserved.

2018-12-04 2018-08-0210:22 3:24AM PM

INDUSTRY NEWS

INDUSTRY>NEWS Canada Infrastructure Bank ‘actively engaged’ in reviewing 10 projects for investment TORONTO—Two months after opening its chequebook for the first time, the Canada Infrastructure Bank says it is “actively engaged” in reviewing a list of 10 other new infrastructure projects for investment.

The institution, which was designed to finance Canadian infrastructure that may otherwise not be built, has been allotted $35 billion in federal funds over the next decade to help bridge the gap between public and private infrastructure.

Pierre Lavallée, the CIB’s president and CEO, disclosed the engagement process for the 10 potential projects in a keynote address at the annual conference of the Canadian Council for Public-Private Partnerships in Toronto Nov. 6.

“We’ve jumped into our investment mandate with both feet,” he said, adding that the bank has also held discussions on 45 other projects, some of which may also move onto the active engagement phase in

the future.

“We are ready and willing to engage in projects that are ready for prime time, but we will also take the time to conduct due diligence.”

Lavallée, who took the reins at CIB this June after serving as the Senior Managing Director & Global Head of Investment Partnerships with the Canada Pension Plan Investment Board (CPPIB), said the bank plans to deploy at least $5 billion in capital to each of its investment priority areas. It has previously identified public transit, green infrastructure, and trade and transportation as its areas of focus.

“We don’t have a favourite child yet,” Lavallée said.

“We are thinking very broadly about the sectors… and we’re willing to engage in any of those areas or all of those areas simultaneously.”

Along with getting more transit

systems, roads and other such projects off the ground, the bank aims to coax private investors – both foreign and domestic – into injecting more capital in Canada. It’s no easy task given the fierce international fight for investment. Still, Lavallée pointed to Canada’s economic growth prospects, fiscal situation and the stability of its legal system as major selling points.

Earlier this year, the bank announced a $1.28 billion loan to Caisse de dépôt et placement du Québec for the pension fund’s Réseau express métropolitain (REM) project in Montreal as its first investment.

The bank expects more action over the next year.

Along with disclosing talks for the 10 new projects, the CIB appointed a new head of project development Dec. 3.

Lavallée said the new institution plans to have its entire leadership team in place in the next few months.

$2.6B Edmonton LRT project has green light as province steps aboard EDMONTON—Another major Alberta transit project is set to get off the ground.

Premier Rachel Notley committed $1 billion to Edmonton’s Valley Line West, which has been in the design stage for several years and city planner roadmaps for a decade.

The light rail project is expected to cost $2.6 billion overall and include 14 stops along 14 kilometres. Running from downtown to the west end, it will link up with the city’s existing LRT, as well as serve as an extension to its counterpart, the Valley Line Southeast, which has been under construction since 2016.

“We are planning and building a city for more than a million people, and with commute times getting longer each year, now is a critical time in Edmonton’s growth to ensure we have a robust transit network in place,” PHOTO: CITY OF EDMONTON

Edmonton Mayor, Don Iveson, said in a statement. “Today’s announcement by the province helps us get one step closer to that goal, and we look forward to continuing to work with them on these types of critical infrastructure investments.”

Among the construction highlights for the new light rail system are two elevated stations and a pair of new bridges that will leapfrog Stony Plain Road and Anthony Henday Drive. The new piece of transit infrastructure will include stops at the West Edmonton Mall, MacEwan University and the Misericordia Hospital, among others sites.

Procurement is expected to get underway next year. The city has not indicated what delivery method will be used for the project, but the southeast leg of the Valley Line is using the P3 model.

Once complete, the new line is expected to serve about 60,000 commuters each day and help to alleviate congestion on city streets. The province estimates the project will create 5,300 jobs through the construction, operation and maintenance phases.

Construction is likely to start in late 2019 or 2020.

10 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 10

2018-12-04 10:22 AM

VANCOUVER—LNG Canada partners reached a final investment decision Oct. 1, green-lighting construction on a massive $40 billion liquefied natural gas facility in northern British Columbia.

The megaproject – representing the single largest private sector investment in Canadian history – includes construction of a 670-kilometre pipeline designed to deliver natural gas from the Montney region near Dawson Creek, B.C. to the LNG Canada plant in Kitimat, B.C. Together, the LNG facility and TransCanada’s Coastal GasLink (CGL) pipeline project are expected to employ approximately 10,000 workers at peak construction, with up to 900 at the plant during phase one operations.

Andy Calitz, CEO of LNG Canada, said the project puts Canada on the “global map” of LNG exporting countries.

Each company in the venture – Royal Dutch Shell plc, Petronas, PetroChina Co. Ltd., Mitsubishi Corp. and Korea Gas Corp. – will be responsible for providing its

own natural gas supply and will individually market its share of LNG. The agreement accounts for two processing units, or “trains,” with the first batch of LNG expected before the middle of the next decade.

JGC-Fluor, a U.S.-Japan joint partnership, will construct the Kitimat facility, to be located on a partially developed industrial site with existing roads, rail and power supplies, as well as a deep-water port.

Prime Minister Justin Trudeau, in attendance for the decision, said the project signifies “a vote of confidence” in Canada.

Still, the six-year journey to a final investment decision, originally delayed in 2016, came with its fair share of challenges – and the project may have to overcome yet another hurdle.

Weeks after investors gave the project their seal of approval, the National Energy Board agreed to hear a jurisdictional challenge from Smithers, B.C. resident Michael Sawyer, who argues that the CGL

PHOTO: LNG CANADA

Investors sign off on $40B LNG Canada project

pipeline is subject to a federal review since it will eventually connect to TransCanada’s federally-regulated Nova Gas Transmission Ltd. system.

In a letter to the regulator, TransCanada called Sawyer’s application “vexatious” with the objective to frustrate natural gas development in B.C. “Challenging the provincial permits indirectly through a jurisdictional application to the NEB years after B.C. issued them is an abuse of process that should not be condoned by the NEB,” the regulator stated in summary of TransCanada.

A timeline for the review is yet to be released, but TransCanada said construction can and will proceed on the pipeline.

SPACE IS NOW 70% SOLD! DON’T MISS OUT ON THESE EXCITING EXHIBIT CATEGORIES: • The Rental Pavilion • Safety Products Pavilion • Screening & Crushing Pavilion

RESERVE YOUR SPACE TODAY! Contact: MARK CUSACK, National Show Manager mcusack@mpltd.ca • Toll-Free: 1.888.454.7469

on-sitemag.com / 11 OnSite_Dec_NHES.indd 1

ONSITE_DEC18_LAZ.indd 11

2018-11-28 3:47 PM

2018-12-04 10:22 AM

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

SPENDING ON NON-RESIDENTIAL CONSTRUCTION INCREASES FOR SIXTH-STRAIGHT QUARTER

Investment in non-residential building construction 16 15 14 13 12 11 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2013

2014

2015

2016

2017

2018

The non-residential segment of the construction industry posted healthy growth in the third quarter of 2018.

With investments rising 0.9 per cent to a total of $14.4 billion, spending on the combined commercial, industrial and institutional sectors has inched up for six straight quarters.

The commercial and industrial parts of the industry can be credited with the latest gain. The two building segments posted increases of $141.6 million and $75.8 million, respectively, over the previous three months. Investment in the institutional sector, meanwhile, retreated $86.9 million compared to the second quarter of the year.

From a regional standpoint, Quebec and B.C. led the way, with spending in each province increasing approximately $66 million. Ontario, on the other hand, reported the largest decline for the quarter, posting $53.7 million less spending than in Q2.

In billions of dollars. Data are seasonally adjusted SOURCE: STATISTICS CANADA

Workers Employed in Construction by Month

CONSTRUCTION INDUSTRY PAY CLIMBS TO $1,275 A WEEK

Workers in the construction industry brought home well over $200 more per week than the average Canadian earner as of August 2018.

The latest data from Statistics Canada show weekly construction industry earnings at $1,275, healthily edging out the national payroll average of $1,006.

Meanwhile, the industry also outpaced the overall economy in terms of wage growth. On a year-over-year basis, earnings for construction workers are up 5.2 per cent, compared to 2.9 per cent for all employees, minus farm workers.

Of the 20 sectors measured, construction placed eighth. Workers in mining and oil and gas topped the list, earning $2,098 a week.

Average Weekly Earnings for August

Construction industry: $1275 Canada overall: $1006

Construction industry: $1211 Canada overall:$978

Construction industry: $1210 Canada overall: $958

Construction industry: $1208 Canada overall: $945

Construction industry: $1222 Canada overall: $938

2018

October September August July June May April March February January

1,433.40 1,446.80 1,418.80 1,435.20 1,447.50 1,420.30 1,433.30 1,452.20 1,433.90 1,433.90

2017

December

1,448.80

November

1,441.30

In thousands of workers, seasonally adjusted SOURCE: STATISTICS CANADA

CONSTRUCTION EMPLOYMENT DECLINES MARGINALLY IN OCTOBER

Approximately 3,400 fewer construction workers were on the job in October compared to a month earlier, mirroring 31 days of little change for the overall Canadian labour market.

The small decline of 0.2 per cent for the construction industry compares to a marginal gain of 0.1 per cent for Canada as a whole, according to Statistics Canada.

Construction employed 1.443 million workers in October, versus 1.446 million in September. In spite of monthto-month drop, 0.9 per cent more builders are on job sites across the country than in the same month last year.

In billions of dollars. Data are seasonally adjusted SOURCE: STATISTICS CANADA

12 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 12

2018-12-04 10:22 AM

_02H OS_De

THE 2018 SUPER DUTY®

YOUR BEST TOOL DOESN’T FIT IN THE TOOLBOX. IT IS THE TOOL BOX.

For you, only the best tools make the cut. That’s why the 2018 Super Duty has been designed to be the undisputed HD champion: best-in-class for payload^ and towing*. And Super Duty is more than simply brute force. Innovations such as an available Trailer Tire Pressure Monitoring system and available Blind Spot Information System (BLIS®) for the truck and trailer makes Super Duty the smartest way to work‡. Consider this HD reinvented.

BEST-IN-CLASS MAX TOWING* 34,000 LBS

BEST-IN-CLASS MAX PAYLOAD^ 7,630 LBS

BEST-IN-CLASS DIESEL TORQUE** 935 LB-FT

BEST-IN-CLASS GAS TORQUE^^ 430 LB-FT

THE PERFECT PAIRING OF MILITARY-GRADE◊ ALUMINUM ALLOY AND HIGH-STRENGTH STEEL

‡‡

EXPLORE THE SUPER DUTY. FORD.CA/SUPERDUTY

Vehicle may be shown with optional features. ^When properly equipped. Maximum payload of 7,630 lbs on F-350 DRW Regular Cab 4x2 with 6.2L gas engine. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. *When properly equipped. Maximum towing capacity of 34,000 lbs on F-450 4x2 with 6.7L diesel engine conguration. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. ‡Driver-assist features are supplemental and do not replace the driver’s attention, judgment and need to control the vehicle. **Maximum diesel torque of 935 lb-ft with standard 6.7L V8 diesel engine 6-speed automatic transmission conguration. Class is Full-Size Pickups over 8,500 lbs.

GVWR based on Ford segmentation. ^^Maximum gas torque of 430 lb-ft on with standard 6.2L V8 gas engine. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. ◊6000-series aluminum alloy. ‡‡F-Series is the best-selling line of pickup trucks in Canada for 52 years in a row, based on Canadian Vehicle Manufacturers’ Association statistical sales report up to year-end 2017. ©2018 Ford Motor Company of Canada, Limited. All rights reserved.

_02H1G_80491_MAG_OSM_R0_SDForestry18_EN_8x10.875.indd 1 ONSITE_DEC18_LAZ.indd OS_Dec_Ford.indd 1 13

2018-11-19 10:30 AM 2018-12-04 2018-11-23 10:22 2:07 AM PM

OUTLOOK 2019

2019

FORECAST This year’s setbacks could cast a long shadow

BY DAVID KENNEDY

W

ith no rose-coloured glasses necessary, the outlook for the construction industry in 2019 remains positive, if somewhat tepid.

Near-record employment, six-straight quarters of higher spending in the non-residential segment and progress on several major projects have bolstered confidence this fall and created a sense of cautious optimism for industry insiders looking ahead to January. Still, 2018 was another year of mixed results for the sector – with some notable successes dogged by several telling setbacks that could cast long shadows into 2019 and beyond.

While the prognosis from most watchers is generally positive, long-nagging issues such as labour shortages, technol-

ogy integration and concerns about Canada’s business climate threaten to pose real challenges for builders next year.

A PEOPLE PROBLEM Companies never tire of saying that they’re only as good as their people. Trite, undoubtedly, but not untrue.

The construction industry is no outlier here. Without qualified workers, contractors simply couldn’t get the job done. It’s little wonder the impending retirement of 250,000 aging builders over the next decade, or about 21 per cent of the workforce – according to a BuildForce Canada study released earlier this year – has forced many in the industry to take a long look at employee engagement and recruitment.

Paul De Jong, president of the Progressive Contractors Association of Canada, is generally optimistic about the construction industry’s growth prospects, but points to the tight labour market as a serious impediment.

“As we move forward, we’re going to have a serious problem with maintaining that growth when we don’t have enough workers to do the work,” he says. “You can see that particularly in the areas like the city of Toronto where many projects are delayed because there’s simply not enough workers.”

With relatively high wages, the industry’s struggle to attract new recruits isn’t about pay, De Jong adds. “It’s not really the money. It’s the approach that’s taken by some folks in the education sector that

14 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 14

2018-12-04 10:22 AM

“The scarcity of youth entering the workforce – which is just based on demographic patterns – and [the construction sector’s] image puts us somewhat at a disadvantage relative to other industries like high tech, that are also competing for STEM students,” she says.

Science, technology, engineering, and mathematics students are often seen as the key to achieving higher productivity in construction, as well as in other industries.

Van Buren said one aspect of the CCA’s plan is a request for funding for 1,000 co-op positions that will help these promising students gravitate toward construction.

Though they say a number steps have already been made, both industry associations also pointed to women and First Nations as groups construction companies need to get better at recruiting and retaining.

“The industry has this challenge, but also this opportunity to redesign its approach, [and] the culture of the work so it’s more conducive to draw in youth, First Nations and women,” De Jong says.

FULL CAPACITY

tend to devalue or de-prioritize opportunities in construction.”

Years of guidance counsellors and teachers funneling students who are likely better suited to trades toward university have taken their toll, he says.

In a fall report, the Business Development Bank of Canada singled out construction as one of the industries facing the most pressing shortage of workers. 48 per cent of construction firms surveyed by the federal crown corporation said it had been difficult to hire new workers over the past 12 months.

Mary Van Buren, the president of the Canadian Construction Association, also sees the competition for young talent as one of the key issues contractors need to address in the year ahead.

As far as labour constraints go, there’s unlikely to be any short-term relief, in part because the industry is firing on nearly all its available cylinders.

In the second quarter of this year, the most recent quarter for which data is available, Statistics Canada pegged the construction industry’s capacity utilization rate at 93 per cent. The metric, which weighs actual output against theoretical potential, has not been so high for the sector since 1990.

With the industry butting up against its currently maximum output, several factors need to change in order for growth to continue. Increased construction demand is one obvious trigger, but a lack of qualified labour can prevent an industry from investing further to meet this demand, Statistics Canada says. In other words, even if companies pull in more work, the industry won’t be able to grow unless it addresses its underlying workforce issue.

Meanwhile, major new jobs such as the $5.7 billion Gordie Howe International Bridge and the recently green-lighted $40 billion LNG Canada project in Kitimat,

B.C. are expected to tighten the labour market further.

In a recent research note, JeanFrançois Perrault, Scotiabank’s senior vice-president and chief economist, says the West Coast liquefied natural gas export facility in particular could add to the problem.

“The project comes at a time of significant capacity constraints in the B.C. construction industry and the draw on labour – where there are already significant labour shortages in the construction sector – is likely to lead to exacerbate these shortages and bid up the price of labour,” he says.

SPENDING SHIFT The new LNG facility and the completion this fall of Suncor Energy Inc.’s Fort Hills oilsands complex outside Fort McMurray, Alta. also signal a major shakeup for Western Canada’s economic and construction status quo.

The 2016 oil price slump dented capital spending in Alberta, but 2019 will be the first year no major greenfield sites are under construction, De Jong says.

“That huge engine of the oilsands has really kind of grinded, not so much to a halt, but to kind of an idling speed. That is a major hollowing out of construction opportunity for workers not just in Alberta, but beyond.”

Construction in the energy industry is expected to shift farther west as work ramps up in Kitimat. Infrastructure and residential work in and around Vancouver will also keep B.C. builders busy.

Across the country, the same can be said for the Greater Toronto Area, where work on new transit lines and multiunit residential projects are expected to continue apace through 2019.

The industrial and commercial building segments are also forecast to remain healthy in Ontario and Quebec, though investment may not remain at its current level, according to the latest Conference Board of Canada analysis. Canada’s non-residential construction industry is likely to post its best-ever performance in 2018, the think tank says, but the robust growth in the industrial and institutional markets is likely unsustainable as busion-sitemag.com / 15

ONSITE_DEC18_LAZ.indd 15

2018-12-04 10:22 AM

Colors: 4cp

Close Date: 11.1.18

The world is tough.

Be tougher.

The world is not going to help you get your job done. It’s going to get in your way at every turn. That’s why we build the trucks that put the odds back on your side. And no matter which model you go with, it’s built with the engineering and components to help you win. Settle for nothing less. YOU CAN FIND YOURS AT WESTERNSTAR.COM

Western Star - A Daimler Group Brand WS/MC-A-581 Specifications are subject to change without notice. Western Star Truck Sales, Inc. is registered to ISO 9001:2008 and ISO 14001:2004.

Copyright © 2018 Daimler Trucks North America LLC. All rights reserved. Western Star Truck Sales, Inc. is a subsidiary of Daimler Trucks North America LLC, a Daimler company.

WST 13243_Be Tougher_4700SB_Sidedump_8 x 10.875 _VOC.indd 1 OnSite_Dec_WesternStar.indd ONSITE_DEC18_LAZ.indd 161

11/1/18 10:09 AM 2018-11-05 2018-12-04 9:10 10:22 AM AM

OUTLOOK 2019

OPEN FOR BUSINESS No setback in 2018 is expected to have a ripple effect as pronounced as the abrupt halt to work on the Trans Mountain project.

The on-again, off-again effort to twin the existing pipeline running between Edmonton and Burnaby, B.C. hit its latest hitch when the Federal Court of Appeal

09.20.18

WST 13059_Be Tougher_4700SB_Sidedump_Det1/3_OnS Title: Western Star Pub: WST 13059 Trim Size: InDesign CC Bleed Size: 4cp Close Date:

Be Tougher/4700SB Det OnSite 2.125 x 10

ruled in August that the review process was inadequate. Ottawa purchased the project from U.S.-based Kinder Morgan Inc. and has vowed to get the pipeline built.

While the project would be a multibillion-dollar boon for the construction industry, the perpetual hangups and still uncertain fate of the pipeline have experts concerned about the impact the project could have on Canadian capital investments as a whole.

“With an election in 2019, all parties will need to demonstrate that Canada is not only open for business, but also easy to deal with,” Van Buren says. “If we look at the example of Kinder Morgan… they lost confidence because the project was so difficult to move forward.”

While there’s still reason to expect the project to move forward in the long run, industry groups and a laundry list of economists see the seemingly endless delays and court challenges as a mark against Canadian competitiveness. Coupled with a relative tax disadvantage versus the U.S., Van Buren says the government needs to do more to show Canada is a good spot for businesses to invest.

While it’s not the construction industry’s job to attract foreign investments – this falls to the sectors it builds for – contractors have a part to play in showing they’re fit to complete jobs safely,

Be productive.

Master any job when you spec your Western Star with the power of a Detroit™ engine.

Whether you choose the Detroit™ DD13®, the Detroit™ DD15® or the 16-liter Detroit™ DD16®, you’ll have an engine you can count on to deliver performance and profitability for years to come.

Find out more at westernstar.com/engines

File Name: Client: Job #: App: Colors:

ness confidence and spending intentions decline.

Scotiabank is more optimistic about the situation in Ontario and Quebec, where non-residential spending has long outpaced the country as a whole.

“Industrial and commercial activity – concentrated in Toronto but also present in other major cities – should propel Ontario’s continued expansion,” Perrault says. “The industrial and commercial sector is also expected to support Quebec’s economic growth, with mining investment and a port expansion providing an additional lift.”

Drifting further east, De Jong says the Atlantic Canada face real challenges as a result of low capital investment. This “chronic stagnation” creates a tough environment for construction, he says. The economies in the four Atlantic provinces are expected grow at a slower rate than the rest of the country over the next two years, while harbouring higher unemployment rates, according to Scotiabank’s fourth-quarter analysis.

on-sitemag.com / 17 WST 13059_Be_Tougher_4700SB_Sidedump_Det1/3_OnS.indd 1 OnSite_Oct_DetroitDiesel.indd 1

9/24/18 12:01 PM 2018-09-25 11:30 AM

10:09 AM 9:10 AM

ONSITE_DEC18_LAZ.indd 17

2018-12-04 10:22 AM

10 CONSTRUCTION TRENDS TO WATCH IN 2019

OUTLOOK 2019 environmentally and on budget.

The Canada Infrastructure Bank, an important emerging player in Canadian infrastructure, aims to draw more private capital – form both foreign and domestic sources – into the country.

The arms-length government institution’s President and CEO, Pierre Lavallée, acknowledges global investors have been tracking the Trans Mountain saga, but says Canada is still seen as a good destination for capital. “If you compare the situation in Canada with the economic growth prospects, the fiscal situation in the country, the stability of our legal system… Canada comes out as a really attractive place to invest,” he says.

Whether or not major global investors in infrastructure agree and are willing to overlook the issues dredged up by Trans Mountain will dictate how successful Canadian builders will be over the next 12 months.

T

here is no shortage of changes, both positive and negative, the industry faces as 2018 comes to a close. On-Site caught up with Mary Van Buren, the president of the Canadian Construction Association, to discuss the trends the industry association will be watching closest over the next 12 months.

1. CONFIDENCE IN CANADA Approval issues for major projects and Canada’s relative tax disadvantage versus the U.S. could cause trouble for builders as investors think twice about their Canadian spending.

2. COMPETITION FOR TALENT Despite near-record employment and a strong economy, the industry faces a significant challenge from an impending wave of retirements and competition for the next generation of talent.

3. INCLUSIVE WORKPLACES The construction industry has worked hard to better integrate women and First Nations on job sites. While attracting new recruits remains tough, companies are also shifting their focus beyond diversity and pursuing more inclusive, flexible workplaces.

4. SOCIAL PROCUREMENT The federal government has tied social policy into its $180 billion infrastructure plan through, among other strategies, community employment benefits. It’s a trend the CCA expects to continue.

5. MILLENNIAL LEADERSHIP Boomers are retiring and family-owned businesses are being passed down to sons and daughters. The culture of construction is certain to change as tech-savvy Millennials take the reins.

π

6. PAY TO PLAY Building new and repairing aging infrastructure isn’t cheap.

Institutions such as the Canada Infrastructure Bank, as well as tools like toll roads, are expected to play a larger role as investors look for revenue streams.

SHIPPING SUPPLY SPECIALISTS

HARDWORKING GLOVES

7. INNOVATION Industry players are expected to step up their efforts to leverage new partnerships and technologies in 2019. Ultimately, these new solutions should solve long-standing industry problems.

8. PRIVACY Smart cities, smart roads and related data-gathering technologies are expected to become increasingly important. Keeping the data under wraps and collecting it with permission will prove a challenge.

9. PRODUCTIVITY Technology and innovation will continue to help the sector improve productivity, while embracing new strategies, such as accelerated capital depreciation for equipment, could also be beneficial.

10. TRADE WAR AND TRADE WOES ORDER BY 6 PM FOR SAME DAY SHIPPING

COMPLETE CATALOG

1-800-295-5510

Canada, Mexico and the U.S. finally agreed to a new trade deal, but the months-long battle along with steel and aluminum tariffs should have companies looking for non-traditional suppliers.

18 / DECEMBER 2018 OnSite_Dec_Uline.indd 1

ONSITE_DEC18_LAZ.indd 18

2018-11-28 10:22 AM

2018-12-04 10:22 AM

OnSite_

TOUGH SEASON AHEAD? WE WOULDN’T HAVE IT ANY OTHER WAY. Exceptional comfort and an easy to maintain Kubota Tier IV Diesel engine combine for an impressive piece of equipment in Kubota’s SSV Series. New side lights expand the operator’s visibility on the job site, and the roll up door and wide operator area make for a more alert and productive work environment during those long cold jobs. All of a sudden, winter doesn’t seem so bad.

kubota.ca | *See your dealer for details.

ONSITE_DEC18_LAZ.indd OnSite_Dec_Kubota.indd 1 19

2018-12-04 2018-11-2710:22 1:36AM PM

GOING LEAN

Lean Construction: Getting past the silos It’s still unfamiliar territory for most firms, but Lean construction may be the solution as projects get more complex and owners demand better dialogue between stakeholders

BY JACOB STOLLER

T

oronto’s Humber River Hospital, completed in 2015, is an award-winning facility featuring fully integrated digital infrastructure, compliance with LEED, a natural people-friendly environment and floor layouts that support Lean workflows.

What’s not immediately obvious is the project’s diverse input from stakeholders including community members, healthcare workers, environmental experts, as well as a wide range of engineers and other technical specialists.

Creating this degree of dialogue is a key strength of Lean construction, which Edmonton-based PCL Constructors

employed on the project. The building strategy is now a focus for the company.

“Lean is looking at the entire value stream from the perspective of the owners, the users, and the occupants,” says Chris Gower, chief operating officer of Buildings at PCL. “It’s about being respectful of everybody’s position at each of the different stages.”

Lean was pioneered in the 1950s by Toyota, which, in the dire circumstances of post-Second World War Japan, needed to substantially increase output with very limited resources.

What Toyota ultimately developed was a revolutionary way of organizing work

based on eliminating waste and building a culture of continuous improvement. The approach was so successful that it led to Japan’s stunning industrial turnaround and is now practiced globally in virtually every sector, including healthcare, hospitality and government.

Construction, however, has been late to the game, in part because of the way the industry is structured. “The impediment in the construction marketplace,” Gower says, “is that we aren’t in control of all aspects of any projects, with architects, engineers, suppliers, subcontractors, and the like. I think one of the reasons why Lean is so slow to be adopted in construction is that we are so fragmented.”

ADAPTING LEAN FOR CONSTRUCTION A central tool of Lean construction is a scheduling method called Last Planner, which was developed in the 1980s by the Lean Construction Institute, a global non-profit corporation dedicated to promoting Lean practices. The approach provides a framework for collaboration among general contractors and trades based on

20 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 20

2018-12-04 10:22 AM

PHOTO: PCL

mutual accountability.

In construction, for example, a drywaller is accountable to the painter, because delays or quality problems with the drywalling can disrupt the painter’s work. So, the painter is referred to as the drywaller’s customer.

Last Planner works backwards from the completion date to day one, with the finishing date of each phase determined by the requirements of the phase that follows it. Time frames are not dictated by the GC, but are established by consensus in planning meetings where all players are required to be present.

During construction, all of the on-site players participate in daily in-person meetings that last 20 to 30 minutes.

Here, progress is reviewed and problems resolved.

The approach requires a significant time investment, but contractors find that it consistently pays off. “When a scheduler suggested this to me back in 2009, it seemed ridiculous at the time to have a meeting a day when we already didn’t have enough time,” says Wayne Leduc, director of operations for the Mission Critical & Pharmaceutical Sector at Toronto-based EllisDon. “But I agreed to try it on the next project, and I found that it really saved me time.”

These time savings often come from eliminating re-work, such as adjusting schedules and activity whenever something goes wrong. “Rather than chasing people all the time,” Leduc says, “they come to you every day for 20 to 30 minutes, and you have their total attention. Then you’re coordinating them in that room. So it’s streamlining the process, and then there’s collaboration on their part, and they become bought into the program.”

The approach calls for the GC to step back from the enforcer role. “You need to be able to promote that

collaborative conversation so you’re not hammering them every time they falter,” says George McGrath, superintendent at Mission Critical & Pharmaceutical Sector for EllisDon. “So you’re all working as a team to get the project done.”

“We’re leading the way, but the trades are telling us what they’re going to do,” Leduc says. “They’re also bringing up the roadblocks for them – things they need us to remove. So they have a total say in the meetings.”

Perhaps the most powerful aspect of the approach is that it creates an atmosphere of trust and mutual respect. “Step one of Lean is it forces people to be in a room together and solve problems,” says Justin Bova, CEO of Winnipeg-based contractor Pretium Projects, which specializes in Lean construction. “That increases teamwork, morale, and project momentum.”

“I tell the trades, ‘The GC’s not your client. It’s the guy behind you. If you’re the drywaller and your walls have pockmarks or aren’t level, he can’t do a good paint job, so he spends hours that weren’t

included in the budget to fix your problems.’”

Although it takes some convincing to get trades on board, those who have worked with Last Planner see the process positively. “Trades love it,” Leduc says. “If you roll it out properly, train the trades, run the meetings, let them collaborate, and let them be part owner in the meeting, they totally support it.”

INDUSTRY TRENDS In 2015, the Canadian Construction Association established the Lean Construction Institute of Canada to promote higher productivity through Lean practices. The institute now hosts an annual conference and supports practice communities across the country.

One of the major drivers for Lean construction has been the growing number of Integrated Project Delivery (IPD) projects, where designers, engineers, and constructors are bound by a contractual agreement to collaborate throughout the planning and building process.

“Lean construction has been attractive for quite a few years,” says Eric Lee, vice-president of Industry Practices with CCA. “Lately with IPD, it’s become a central focus for our members. That’s the reason why it’s an issue we want to be on top of.”

That said, Lee cautions against confusing the two. “I think there is a misconception that Lean is only applicable for IPD. Lean construction is an important element of IPD, but any project can benefit from Lean construction principles.”

Another important distinction is that Lean’s “big room” approach creates an inter-dynamic that is very different from what is achieved through the deployment of Building Information Modeling (BIM) systems.

“The emphasis with BIM tends to be on highlighting discrepancies, errors and omissions in drawings,” Bova says. “BIM is a wonderful tool, but it can create adversarial situations as opposed to collaboration.”

“The benefit of the big room is that it forces human beings – the on-sitemag.com / 21

ONSITE_DEC18_LAZ.indd 21

2018-12-04 10:22 AM

PHOTO: PCL

GOING LEAN

experts, the trade foremen – to work on the problem together. We need to work around things, and sometimes having a chat is better than critiquing every square inch of the building.”

BUILDING A LEAN CULTURE Collaborative projects that employ Last Planner are a welcome change from the status quo, but they are only one aspect of Lean’s potential to improve a construction company’s operations. When adopted across the enterprise, Lean creates a culture of continuous improvement that can transform work and management practices in every functional area of the business.

“Lean involves a cultural change, and you can’t force that,” Lee says. “It has to be willingly adopted within the organization.”

PCL began experimenting with Lean a decade ago and has now embarked on a journey to take the principles corporate-wide. “In the past few years, we’ve made it a strategic initiative to implement

Lean more consistently across all of our operations,” Gower says.

Rather than forcing people to use various Lean tools, the company promotes a general awareness of Lean principles, and then provides training resources and communications platforms to make it easy for local offices to acquire and share knowledge and techniques.

“It’s much easier to change and introduce new concepts when people see the value in it themselves,” Gower says.

While the field is the primary focus, the company is also applying Lean to in-house processes such as RFP responses, accounting procedures and the implementation of new technology.

WILL OWNERS STEP UP? Lean construction requires owners to depart from the traditional methods of tendering work. This remains a sticking point.

“The adversarial relationships on a project really begin with the promises contractors feel they have to make to get

the job in the first place,” says Larry Coté, president of Lansdowne, Ont.-based Lean Advisors.

“We need the buy-in from owners,” says Helen Zhuang, a professor at the Angelo DelZotto School of Construction Management at Toronto-based George Brown College. “They should consider more investment in pre-project planning to obtain the full value of Lean construction.”

The benefits of the Lean approach, however, are tough to quantify. “In a manufacturing facility where everything’s highly contained and repeatable, it’s easy to measure,” Gower says, “but building a hospital in North Bay is not the same thing as building a hospital in Orlando, so it’s hard to judge one against the other.”

That will likely change as the evidence grows.

In the meantime, contractors who practice Lean will have to be content with the oldest persuasion method in the books: delivering excellent value to clients and letting the results of their work do the talking.

22 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 22

2018-12-04 10:22 AM

OnSite_

MAKE YOUR OPERATIONS

BETTER. FASTER. SAFER. JOIN YOUR PEERS

PHOTO: PCL

AT ICUEE 2019!

North Americaâ&#x20AC;&#x2122;s Largest Utility & Construction Trade Show 1,000+ Leading Manufacturers & Service Providers More than 28 Acres of New Products 18,000+ Construction & Utility Professionals

Utility professionals worldwide use ICUEE to make informed purchasing decisions that position their businesses & teams for success.

October 1-3, 2019, Louisville, KY ONSITE_DEC18_LAZ.indd OnSite_Dec_ICUEE.indd 123

|

Learn More at www.icuee.com 2018-12-04 2018-11-28 10:22 11:02AM AM

PICK-UP REPORT

Picking up

Creature Comforts 2019 WORK TRUCK REPORT

N

ot long ago, pick-ups were seen as little more than dedicated work trucks.

Those days are long gone. With the rise of crossovers and SUVs, people want bigger vehicles, and for many, pick-ups have become “an SUV with a truck bed.” It’s a net gain for those who depend on trucks for their day-today operations. ‘Work’ trucks now come with more bells, whistles and options than ever before.

For the 2019 model year, light-duty pick-ups take centre stage. General Motors has introduced all-new versions of its GMC and Chevrolet 1500 variants, Ford has added a diesel to its F-150 line-up, Ram has a new version of its 1500, and Toyota and Nissan are offering updated versions of the Tundra and Titan respectively.

The mid-size segment, which has seen an increase in interest over the last few years, has Ford introducing the Ranger to market, with many other options still available from a variety of OEMs. Here, On-Site looks at what’s available and what’s new in the pick-up truck market for 2019.

FORD

BY MARIO CYWINSKI

24 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 24

2018-12-04 10:22 AM

s

F-Series

Ranger

Ford has been the number one selling pick-up truck brand in Canada for many years with the F-series.

Not one to rest on its laurels, Ford is adding a diesel engine to the F-150 line-up, as well as offering the Raptor’s engine on the Limited trim. The diesel is a 3.0-litre Power Stroke V-6 diesel with 250 horsepower and 440 lb.-ft. of torque mated to a 10-speed automatic transmission. It is capable of 11,400 pounds of towing and 2,020 pounds of payload. The high-output EcoBoost 3.5-litre V-6 offers 450 hp and 510 lb.-ft. of torque. Four other engine choices are also available: 3.3-litre V-6 with 290 hp and 265 lb.-ft. of torque, 2.7-litre EcoBoost V-6 with 325 hp and 400 lb.-ft. of torque, 3.5-litre EcoBoost V-6 with 375 hp and 470 lb.-ft. of torque, and a 5.0-litre V-8 with 395 hp and 400 lb.-ft. of torque. All but the 3.3-litre V-6 are mated to a 10-speed automatic.

Three box sizes, three cab sizes (regular cab, supercab, and supercrew) and seven trim levels (XL, XLT, Lariant, King Ranch, Platinum, Limited, and Raptor).

Max payload is 3,270 pounds and max trailer towing is 13,200 pounds.

The 2019 Ford Super Duty, meanwhile, does not receive any major changes for the coming model year. It is available with two engines, a 6.2-litre V-8 gasoline engine (385 hp and 430 lb.-ft. of torque) and a 6.7-litre Power Stroke V-8 turbo Diesel engine (450 hp and 935 lb.-ft. of torque). Both are mated to a six-speed automatic transmission. It comes with standard rear view camera, front stabilizer bar, SYNC, four/seven pin trailer tow connector and more. Safety is top-of-mind as the Super Duty comes with standard trailer sway control, a tire pressure monitoring system, and a plethora of air bags. Available features include: fifth-wheel and gooseneck hitch kit, hill start assist, SYNC 3, adaptive cruise control, adaptive steering, spray-in bedliner, and many more.

With the mid-size segment growing in popularity over the last few years, Ford has brought its Ranger nameplate back to the market after a brief hiatus.

All-new to North America for 2019, it offers a 2.3-litre EcoBoost engine mated to a 10-speed automatic transmission. Ranger will be available in XL, XLT, and Lariat trims, and in Supercab or Supercrew cabs. Auto start/stop, four cargo box tie downs, quick-release tailgate and a variety of safety features (including trailer sway control, rear view camera and automatic emergency braking) come standard.

An FX4 Off-Road package has off-road-tuned shocks, all-terrain tires, frame-mounted heavygauge steel front bash plate and skid plates, a status screen for monitoring pitch and roll, as well as FX4 badging. It also features the Terrain Management System, which offers four drive modes (normal; grass, gravel and snow; mud and ruts; and sand). All-new Trail Control works like cruise control but for low-speed, rugged terrain.

It takes over acceleration and braking and can send power and braking to each individual wheel.

Chevrolet Silverado GM stable mates Chevrolet Silverado 1500 and GMC Sierra 1500 were both redesigned for the 2019 model year. For the sake of space, let’s focus on the Silverado. It will come with six engine options, of which four are new.

The new engines are: 2.7-litre turbocharged I-4 with active fuel management mated to an eight-speed automatic transmission, 5.3-litre V-8 with dynamic fuel management mated to an eight-speed automatic transmission, 6.2-litre V-8 with dynamic fuel management mated to a 10-speed automatic transmission and a 3.0-litre I-6 turbo diesel mated to a 10-speed automatic transmission. A 4.3-litre V-6 and 5.3-litre V-8, both with active fuel management and mated to a six-speed automatic transmission are also available.

The new Silverado is bigger, stronger and lighter. It has a wheelbase that’s up to 100 mm longer and is 41 mm longer overall. The truck also has more cargo room and interior room, is up to 204 kilograms lighter, has a higher payload for crew cab models (increase of 14 per cent), stronger tie-downs (12 in all) with 227

GM kilograms of force before bending (doubled), and more.

Silverado will offer regular cab, double cab and crew cab configurations (all with all-wheel drive), three cab lengths (8’, 6’6”, and 5’8” depending on model) and eight available trim levels (work truck, custom, custom trail boss, LT, RST, LT Trail Boss, LTZ and High Country.

Other vehicles: GM also offers two mid-size pick-ups: the Chevrolet Colorado and GMC Canyon. on-sitemag.com / 25

ONSITE_DEC18_LAZ.indd 25

2018-12-04 10:22 AM

TITAN

NISSAN Ram 1500 All-new for the 2019 model, the Ram 1500 is available in three configurations (quad cab with 6’ 4” bed, crew cab with 5’ 7” bed, and crew cab with 6’ 4” bed), all available in either 2WD or 4WD. Engine options are a second generation 3.6-litre Pentastar V-6 (with 305 hp and 269 lb.-ft. of torque) or a 5.7-litre HEMI V-8 (with 395 hp and 410 lb.-ft. of torque). The eTorque mild hybrid system is standard on the V-6 (adds 90 lb.-ft. of supplemental torque) and available on the V-8 (adds 130 lb.-ft. of torque). Both engines are mated to an eight-speed automatic transmission.

New for 2019 is the fourth-gen Uconnect system with available 12” touchscreen, 360-degree camera, adaptive cruise control, forward collision warning with active braking, and more. Ram also offers an air suspension on 1500 models that provides more capability off-road and makes for easier loading and offloading with four different ride heights. For 2019, the maximum payload is now 1,043 kilograms with max trailer towing of 5,783 kilograms. Ram’s exclusive RamBox is available and allows for storage of items on the side of the bed. It locks for security.

Ram is also continuing to sell the previous generation 1500 model as the Classic. It is available with a V-6, V-8 or V-6 diesel engine.

Nissan’s Titan and Titan XD have three major changes for 2019 model year, including NissanConnect with Apple CarPlay and Android Auto offered as standard, as well as rear door alert – which reminds drivers to check the back seat when the vehicle is parked – added as standard. The big change, however, is the addition of a new Fender audio system (replacing the Rockford Fosgate system).

The system offers: 12 speakers (10 on King Cab), 485 watts of power and Panasonic acoustic motion control.

Other vehicles: Nissan also offers the Frontier mid-size pick-up truck.

RAM

26 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 26

2018-12-04 10:22 AM

PICK-UP REPORT

TOYOTA

Tundra

Toyota’s full-size pick-up truck continues into 2019 with TRD Pro grade returning and offering 18” forged alloy wheels, 2.5” FOX internal bypass shocks, Rigid Industries fog lights, hood scoop, “TOYOTA” heritage grille design, black chrome exhaust tip and red TRD logo on the skid plates. The SX package comes with glossy black 18” alloy wheels, body coloured bumpers, black grille, foot well lighting, fog lights and privacy rear glass. A power tailgate lock is added to Platinum and 1794 models.

Two engine options are available, a 4.6-litre V-8 with 310 hp and 327 lb.-ft. of torque, or a 5.7-litre V-8 with 381 hp and 401 lb.-ft. of torque, both engines are mated to a six-speed automatic transmission. Tundra comes in three bed lengths (5.5’, 6.5’ and 8.1’), two cab sizes (doublecab and crewmax), and in 4x4 or 4x2 configuration. Toyota Safety Sense P is standard on all Tundra models.

Tacoma The mid-size Tacoma updates the TRD Pro grade desert air intake, JBL premium audio system, black chrome exhaust tip and updated TRD skid plate with red logo.

All trims now offer a dual USB port, while Limited trim gets power tailgate lock.

Toyota Safety Sense P is standard on all Tacoma models.

Tacoma is available with a 2.7-litre inline-four cylinder engine that offers 159 hp and 180 lb.-ft. of torque or a 3.5-litre V-6 engine with 278 hp and 265 lb.-ft. of torque, both are available with a six-speed automatic transmission. A six-speed manual is available on TRD off-road models with V-6 engine. Two cab sizes are available: the access cab and double cab, and in 4x4 and 4x2 configurations.

ABOUT THE AUTHOR Mario Cywinski is the Editor of Machinery and Equipment MRO magazine. He is a member of the Automobile Journalists Association of Canada (AJAC), a judge for Canadian Truck King Challenge and has over 15 years of automobile industry experience.

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 2018, 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

on-sitemag.com / 27 OnSite_April_AdrianSteel.indd 1

ONSITE_DEC18_LAZ.indd 27

2018-04-10 9:20 AM

2018-12-04 10:22 AM

DECEMBER 2018

FREE TO QUALIFIED SUBSCRIBERS! Please fill in the following and mail/fax today!* For faster service, simply visit on-sitemag.com and click on Subscribe

Y ES! I wish to receive/continue to receive Digital

Choose your edition:

absolutely FREE.

Print

Signature (required)

Both

/

Date DD

Name

Professional content for professional contractors

/ MM

YR

Title

Company Address City

Prov.

email

Tel

Do you wish to receive our E-Newsletter?

Yes

Postal Code

No

Please answer the following questions to renew your free subscription.

Incomplete forms cannot be processed.

What best describes your primary business?

(Choose only one)

Do you purchase and/or approve the purchase of Yes No construction products or services?

Contractor engaged in Highway & Heavy Construction Contractor engaged in Building Construction Distributors & Rental Houses Government & Public Works Other (please specify)

Do you rent equipment?

Yes

No

What is the approximate number of employees at this location?

Are you a contractor who works with concrete

related products and services?

Yes

No

If Yes, please indicate which products Earth moving equipment Compact Equipment Safety Equipment Paving Equipment Dump Trucks Used Equipment Pick-Up Trucks Trailers Generators Attachments Hand Tools Compressors Lifting Equipment Power Tools Welding Tools

visit

on-sitemag.com to subscribe today

On-Site Magazine Fax: 416.442.2191 (416) 510-1113 111 Gordon Baker Rd., Suite 400, Toronto, ON M2H 3R1 email APotal@annexbusinessmedia.com *Publisher reserves the right to determine qualification & limit distribution.

ONSITE_DEC18_LAZ.indd 28

2018-12-04 10:22 AM

DECEMBER 2018

IN THIS ISSUE: 33 World of Concrete preview | 37 Silica dust | 43 Canadian Concrete Expo preview

ONSITE_DEC18_LAZ.indd 29

2018-12-04 10:22 AM

CONCRETE NEWS

HALIFAX—An East Coast cleantech firm that has carved out a niche for itself in the highly competitive concrete industry has secured the backing of some of the world’s biggest business moguls.

CarbonCure Technologies Inc. said Sept. 26 is has closed a strategic investment round led by Breakthrough Energy Ventures, a cleantech fund backed by Bill Gates, Jeff Bezos and Richard Branson, among other prominent individuals and companies.

Breakthrough Energy targets companies with the potential to eliminate half a gigaton of greenhouse gas emissions or more each year, according to Carmichael Roberts, a member of the investment fund.

“CarbonCure represents a triple threat in achieving this goal: compelling economics with a solution that delivers value

for customers from day-one, products in market today, and a measurable impact on reducing carbon emissions in the built environment,” Roberts said in a statement.

The Halifax-based company’s bolt-on technology injects carbon dioxide into fresh concrete during the production process. By locking the greenhouse gas into the abundant construction material before it sets, the process traps CO2 while also improving the strength of the concrete. The technology is already being used by more than 100 concrete producers in the U.S. and Canada. The company says the new investment will allow it to expand into international markets, as well as commercialize new processes.

“We’ve made it simple and profitable for the construction industry to build resilient structures with lower CO2 emissions,”

PHOTO: CARBONCURE

Concrete tech firm CarbonCure earns backing of high-profile investment fund that includes Bill Gates, Jeff Bezos Rob Niven, CarbonCure’s founder and CEO, said in a statement. “Every tonne of CO2 utilized in concrete production with the CarbonCure Technology results in a multiplier effect that saves an additional 28 tonnes of CO2 and over $3,100 in production efficiencies.”

The value of the Breakthrough Energy’s investment in CarbonCure was not disclosed, but the company said the investment fund will gain a seat on its board of directors.

While the funding round was led by the high-profile cleantech fund, it also included the GreenSoil Building Innovation Fund and follow-on investment from BDC Venture Capital’s Industrial, Clean and Energy Technology Venture Fund.

CarbonCure’s technology is in use at a number of Canadian concrete plants.

MONTREAL—It’s official. The new Champlain Bridge will not open this December.

Infrastructure Canada said Oct. 25 that construction on the new span over the St. Lawrence River will continue into next year, confirming a report from Canada’s auditor general in May that described the Dec. 21 deadline as “very challenging.”

Canada’s new Minister of Infrastructure and Communities, Francois-Philippe Champagne, further fuelled speculation in July when he said he was not sure the work could be sped up enough to meet the deadline.

The federal government agency said the delay is in spite of “the progress that has been made over the last few months.”

It added that the six-kilometre bridge will

open as soon as possible without compromising the safety of workers or the public.

“Today’s construction update makes clear that significant progress has been made on this critically important project and that final work necessary to open the bridge to traffic will take place in the new year,” Champagne said in a statement.

The bridge will replace an aging structure of the same name that has carried traffic to the opposite side the St. Lawrence east of Montreal for more than 50 years.

Signature on the St. Lawrence, the

PHOTO: SIGNATURE ON THE ST. LAWRENCE

Opening of Champlain Bridge delayed up to six months

construction consortium responsible for building the bridge, has detailed “significant” progress on the project over the past several months, but said weather-dependent work such as waterproofing and paving is unlikely to start before spring.

Ottawa set June as the new deadline for the bridge, adding that it will release an official date in the new year.

30 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 30

2018-12-04 10:22 AM

106847 OnSite_

PHOTO: CARBONCURE

PHOTO: SIGNATURE ON THE ST. LAWRENCE

For over 75 years, QUIKRETE® 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.

10684752 GenCon_OnSite_v2.indd 1 ONSITE_DEC18_LAZ.indd OnSite_Quikrite_Aug.indd 31 1

7/25/1710:22 2:58 PM 2018-12-04 2017-08-01 2:49AM PM

The concrete and masonry industries don’t stop. That’s why you give it your all every day. And it’s why we give it our all every year. We bring together the most powerful, connected network—new products, innovative technologies, and top education & training—so that you can keep building in the right direction. When you have access to the best, at the world’s largest annual international event for concrete and masonry, there’s no stopping us.

REGISTER TODAY: www.worldofconcrete.com

JANUARY 22-25, 2019 • SEMINARS: JANUARY 21-25 LAS VEGAS CONVENTION CENTER • LAS VEGAS, NV, USA A selected participant in the International Buyer Program

OnSite_Oct_WorldofConcrete.indd ONSITE_DEC18_LAZ.indd 32 1

2018-09-20 2018-12-04 2:41 10:22 PM AM

WOC PREVIEW

Tech looks to earn its place at World of Concrete 2019 Prepping for January in the desert

I

n a few short weeks, tens of thousands of construction pros will converge on Las Vegas for World of Concrete 2019.

The huge annual show will span five days, cover some 800,000 sq. ft. of the Las Vegas Convention Center and host more than 1,500 exhibitors from the U.S. and around the world.

Show organizer, Informa Exhibitions,

WORLD OF CONCRETE 2019 Where: Las Vegas, Nevada Venue: Las Vegas Convention

Center Exhibits: Jan. 22-25 Seminars: Jan. 21-25

expects WOC 2019 to be the largest event in a decade, eclipsing last year’s show that drew 58,000 attendees.

The floor, where exhibitors will show off a vast array of new and cutting-edge products, is open from Jan. 22 to 25.

Jackie James, the group director at World of Concrete, says this year’s event will include approximately 300 brand new

exhibitors. Despite the American locale, James also emphasized the international reach of WOC, saying the show attracts about 240 exhibitors from outside the U.S. each year.

Educational seminars start a day before the show floor opens, running from Jan. 21 to 25. They range from 90-minute learning sessions and interactive workshops to in-depth industry training and certification courses.

As in previous years, much of the show will be dedicated to the traditional aspects of concrete and masonry construction. But it’s also making way for the latest modern tweaks that are disrupting the sometimes-too-traditional industry.

Informa has implemented a number of changes to the floor for 2019 to accommodate expanding segments of the industry, notably moving the masonry area to the Central Hall and the technology area to the North Hall. James says the change will let attendees get more acquainted with the growing tech segment. He noted that the technology area of the show will feature managerial software firms and other providers that aim help clients increase efficiency while reducing operating costs. Technology will also feature prominently in the seminar schedule.

Intermeshed with state-of-the-art innovations, such as virtual reality and construction automation techniques, World of Concrete 2019 will show off the latest steps forward in shotcrete, precast, post-tensioned construction and tilt-up concrete, among other areas.

SEMINARS TO WATCH Innovations in Construction Layout—Next Generation 3D Scanning for the Field Bryan Williams, segment manager at Trimble, will share how the next generation of field layout and scanning technology are shaking up the construction industry.

Path of a Concrete Construction Project from Estimate to Closeout Covering critical steps from bidding to closeout, this session will offer an overview of risk management, communication, permits, equipment selection, overhead recovery and how to turn a profit.

Talent Generation: Tools to Manage the 21st Century, Multi-Generational Job Site This two-day event will incorporate results from an industry survey conducted by XYZ University on intergenerational engagement on the construction job site.

Cold Weather: Managing Concrete in Winter Conditions Kim Basham, president of KB Engineering LLC, will cover protection and specifications, designing and ordering concrete mixes, and how to place, finish and protect concrete from cold temperatures.

Design & Control of Concrete Mixtures: Applications, Methods & Materials Led by the director of concrete technology at Portland Cement Association, Michelle Wilson, this two-hour seminar will include an overview of mixtures and methods for controlling concrete properties.

Performance-Based Design and Specification of Fiber-Reinforced Concrete Attendees can expect to leave with a basic knowledge of fibers and the design methodologies. Charles Nmai, manager of engineering services at BASF Corporation, will lead the presentation.

on-sitemag.com / 33

2:41 PM

ONSITE_DEC18_LAZ.indd 33

2018-12-04 10:22 AM

ONSITE_DEC18_LAZ.indd 34

2018-12-04 10:22 AM

to WOC Exhibitors contributing equipment and materials used for hands-on training.

APPRECIATION

SPECIAL

MANAGEMENT

& PROJECT

BUSINESS

REPAIR

CONCRETE

PRODUCTION

CONCRETE

POLISHING

CONCRETE

FLOORS & SLABS

CONCRETE

FUNDAMENTALS

CONCRETE

3-Hour Tracks

• TUPCW Pervious Installer Written Exam Tuesday, 3:00 pm – 5:00 pm

MO402 Pervious Concrete Installer Monday, 8:00 am – 12:00 pm A.Sparkman

no additional charge Monday, 1 pm - 4 pm (MOAAID)

**Examinees required to attend demonstration -

• TUAIW Inspector Written Exam** Tuesday, 8:00 am - 10:30 am

MO401 ACI Adhesive Anchor Installation Inspector Monday, 8:00 am - 12:00 pm W.Hellmer

TUMD1 Tuesday, 11:30 am - 3:00 pm TUMD2 Tuesday, 1:30 pm - 5:00 pm

WEMD1 Wednesday, 11:30 am - 3:00 pm WEMD2 Wednesday, 1:30 pm - 5:00 pm

• THFTP 2-Hr Field Testing Perf Exam**

• WEFTW Field Testing Written Exam Wednesday, 3:30 pm - 5:00 pm

TU405 ACI Concrete Field Testing Technician - Grade I Tuesday, 1:00 pm - 5:00 pm M.Englestead

• TUCPE Written Exam Tuesday, 1:00 pm - 3:00 pm

Thursday, 8:00 am -11:00 am Contact associations for questions regarding **Practice Session – optional eligibility and certification Wednesday, 8 am – 12 pm requirements.

NOTE:

Tuesday, 3:30 pm - 5:30 pm

● TUCIF Comm/Ind Written Exam

Tuesday, 7:00 am - 1:00 pm

● TUFPE Comm/Ind Performance Exam

TUESDAY January 22

TU404 ACPA Concrete Pump Operator Safety Tuesday, 8:00 am - 12:00 pm L.Ainsworth

THSC1 Thursday, 8:00 am - 12:00 pm

THURSDAY January 24

THMD1 Thursday, 11:30 am - 3:00 pm THMD2 Thursday, 1:30 pm - 5:00 pm

THPTD1 Thursday, 8:00 am – 12:00 pm THPTD2 Thursday, 1:00 pm - 5:00 pm

• THCFF Flatwork Written Exam Thursday, 1:00 pm - 3:00 pm

WE407 ACI Concrete Flatwork Finisher/Technician Wednesday, 8:00 am - 12:00 pm J.Holland, B.Simonelli

**ICRI Examinees MUST be pre-approved

• THRPE Moisture Testing 1-Hr Perf Exam** Thursday, 12:00 pm - 4:00 pm

• THTUS Tilt-Up Written Exam Thursday, 4:00 pm - 6:00 pm

TH409 ACI/TCA Tilt-Up Technician/Supervisor Thursday, 12:00 pm - 4:00 pm S.Hickey

• THCFA Foundation Written Exam Thursday, 1:00 pm - 3:30 pm • WERCE Recertification Written Exam** Wednesday, 2:00 pm - 3:00 pm

• WECRT Moisture Testing Written Exam

THURSDAY January 24

TH408 ACI/CFA Residential Foundation Technician Thursday, 8:00 am -12:00 pm J.Baty

WE406 ICRI Concrete Slab Moisture Testing Technician Wednesday, 8:00 am - 12:00 pm P.Craig, S.Tarr

WEDNESDAY January 23

FR18 What is Wrong With My Concrete?

—Troubleshooting Concrete Quality T.Ley

See additional certifications under Industry Training – pg 3.

Opportunities for craftsmen, technicians, supervisors and inspectors to receive internationally recognized credentials.

for the construction professional

CERTIFICATIONS

INDUSTRY

TH28 FR29 NEW! Creating, Managing & Utilizing a Construction Productivity Analysis and Improvement Schedule for Success K.Wolfe R.Geans, K.Wolfe

TH23 Repairing Concrete Cracks: Evaluation and Selection of Repair Methods K.Basham

TH13 NEW! Polished Concrete Overlays—Creating a Successful Installation J.Zingale

TH09 Extended Joint Systems for Slabs-on-Ground J.Holland, B.Birdwell

WOC 4-HOUR CERTIFICATION SEMINARS & EXAMS

MO403 ACI Advanced/Specialty Comm/Indus Concrete Flatwork Finisher/Technician Monday, 1:00 pm - 5:00 pm J.Holland, B.Simonelli

MONDAY January 21

WEPTD1 Wednesday, 1:00 pm - 5:00 pm

8:00 AM—11:00 AM

8:00 AM—11:00 AM

FR14 NEW! Expectations and Maintenance of Polished Concrete Slabs J.Ledger-Kalen, E.Ledger

FRIDAY January 25

THURSDAY January 24 TH05 NEW! Curing Concrete: Why We Do It and Why We Care T.Ley

Place & Finish Floors • J.Groom, D.Bartz

WECS1 Wednesday, 8:00 am - 12:00 pm

WESC1 Wednesday, 8:00 am - 12:00 pm

WESTS1 Wednesday, 8:00 am - 12:00 pm - Advanced Surveying

Mix Design & Testing Labs • J.Schemmel, T.Greene

TUCS1 Tuesday, 1:00 pm - 5:00 pm

Concrete Stenciling • R.Knigge

TUSC1 Tuesday, 1:00 pm - 5:00 pm

Stamped Concrete • P.Schneider

TUSTS1 Tuesday, 8:00 am - 12:00 pm TUSTS2 Tuesday, 1:00 pm - 5:00 pm - Basics of Surveying for Beginners

Surveying with Total Stations • T.Houston, D.Crowther

WEDNESDAY January 23

WE27 NEW! LEAN Construction Concepts and Benefits K.Wolfe

WE22 NEW! Advanced Concrete Repair: Structural Distress, Assessment & Strengthening Solutions J.Thomas

WE17 Mix Design II: Adjusting with Aggregates and Admixtures K.Hover

WE12 NEW! From Bid to Contract: Preparing for Successful Concrete Polishing C.Gill, T.Binkowski

WOC HANDS-ON TRAINING

TUESDAY January 22

TU26 NEW! How to Turn Inefficiency to Profitability B.Humphrey

TU21 Concrete Repair Fundamentals II: Waterproofing, General Protection & Corrosion Prevention P.Emmons, E.Alhariri

MO19 Troubleshooting Concrete Cracks: Understand and Minimize Cracking K.Basham

MO24 How to Establish Teamwork on Every Crew & Job J.Stokes

TU16 Mix Design I: Evaluation of Mixtures K.Hover

MO15 Effective Use of Chemical Admixtures C.Nmai See Hands-On Mix Design Labs

TU11 NEW! Wet & Dry Polishing Systems for Retail & Industrial Slabs: Productivity, Profit & Appearance R.Smith

MO10 Fundamentals of Polished Concrete—From the Ground Up B.Harris

MO20 Concrete Repair Fundamentals I: Surface Preparation, Reinforcement Repair, Material Selection & Placement P.Emmons MO25 NEW! Small Company Survival Skills to Reach the Next Level of Success J.Stokes

TU08 NEW! The Love/Hate Relationship of Moisture in Concrete Floor Slabs P.Craig, S.Tarr

MO07 NEW! Concrete Toppings—Avoiding Failures and Costly Repairs S.Tarr

See Hands-On Place & Finish

MO06 Creating Concrete Slab Canvas for Exposed Decorative/Polished Surfaces P.Harrison, B.Harris

See Hands-On Mix Design Labs

WE04 NEW! Design and Control of Concrete Mixtures: Applications, Methods & Materials M.Wilson

8:00 AM—11:00 AM

TU03 Concrete Basics III: Typical Problems, Durability & Trending Applications J.Groom, M.Wilson

WEDNESDAY January 23

8:00 AM—11:00 AM

MO02 Concrete Basics II: Depositing, Testing, Placing, Finishing & Curing Concrete J.Groom, R.Szecsy

1:00 PM—4:00 PM

WOC 3-HOUR SEMINARS

TUESDAY January 22

MO01 Concrete Basics I: Concrete Materials, Mixtures, Batching & Transporting J.Groom, R.Szecsy

8:00 AM—11:00 AM

MONDAY January 21

WORLD OF CONCRETE 2019 EDUCATION PROGRAM Program-at-a-Glance , Pg 1 (as of 11-13-18)

S S t

34 / DECEMBER 2018

OnSite_O OS_Oc

See more of the action at RoadLife.tv/Watch

MACK® GRANITE®

Strong.

Start to finish.

Built in America to build our future.

Companies like Brooklyn Ready Mix need the toughest trucks on the planet to build the biggest city in America. That’s why they rely on the Mack Granite. Made by hard-working Americans, the Granite combines all-around durability with all-day comfort to keep you going strong.

Learn more at MackTrucks.com/Granite

OnSite_OctNov18_8x10_7-8_ConstructionAd.indd 1 ONSITE_DEC18_LAZ.indd OS_Oct_Mack.indd 1 35

8/28/1810:22 10:36 AM 2018-12-04 2018-09-12 3:22 AM PM

CONCRETE RENTAL TOOLS - READY WHEN YOU ARE

PROVIDING SOLUTIONS TO HELP YOU WORK SMARTER, NOT HARDER. When you rent equipment, you want to know it will perform like expected. That’s why Husqvarna focuses on manufacturing and delivering products that are durable, deliver strong ROI and are easy to operate. This focus means Husqvarna’s equipment is not only reliable and effective during operation, but is also easy to transport, install, dismantle and service. This difference results in better ergonomics and higher productivity. Call your local Husqvarna representative to learn more. 800.461.9589

WWW.HUSQVARNA.COM/CA-EN hcpcustomer.service@husqvarna.com Phone: 800-461-9589 Copyright © 2018 Husqvarna AB (publ.). All rights reserved. Husqvarna is a registered trademark of Husqvarna AB (publ.).

OS_Dec_Husqvarna.indd ONSITE_DEC18_LAZ.indd 1 36

2018-11-19 2018-12-04 1:37 10:22 PM AM

SILICA DUST

TESTING THE LIMIT:

SILICA DUST ON THE JOB SITE With workers’ health on the line, inconsistent regulations force the industry to play catch up BY: JILLIAN MORGAN

I

t takes decades of breathing in the fugitive dust created by drilling, cutting and grinding concrete, stone and other materials containing crystalline silica for silicosis to scar and harden the lungs.

The incurable disease is one of a handful caused by inhaling the ubiquitous mineral in its most hazardous form: respirable crystalline silica (RCS).

Unavoidable jobs, such as power cutting, demolition, excavating and rock hauling, to name a few, unearth the dust – and in the absence of sufficient protective measures, workers are vulnerable to its health effects, which include autoimmune disease, chronic kidney disease, lung cancer, and of course, silicosis.

In Canada, the regulations and occupational exposure limits (OELs) that govern

silica dust often differ from province to province. While they’re designed to protect frontline workers, the set of disharmonious safeguards can become a bureaucratic nightmare that trip up management and create uncertainty for workers.

Even well-meaning contractors that make it their business to understand and follow silica dust regulations often run into trouble, according to Mike McKenna, the executive director of the B.C. Construction Safety Alliance (BCCSA).

Though they may have mastered regulations in one province, they frequently need to adopt entirely different benchmarks when bidding a job in another province.

“If I was one of those folks,” he says, “I think I might throw up my hands and

go, ‘I can’t win for trying.’”

But with workers’ long-term health on the line, it’s not an issue regulators, companies or frontline workers can afford to ignore.

EXPOSURE LIMITS Oftentimes, whether or not a worker is over the limit is dictated by location.

“When it comes to different occupational exposure limits, both how it’s measured and the actual OEL, it becomes more difficult for… workers to know whether or not they’re actually over-exposed,” says Dan Curtis, lead health and safety application specialist for 3M Canada’s Personal Safety Division.

“They think they’re actually meeting the legal limit in the one province, and on-sitemag.com / 37

1:37 PM

ONSITE_DEC18_LAZ.indd 37

2018-12-04 10:22 AM

Zero Turn for Mobility, A Fun New Spin for Pavers

Central Hall -- #C5150 January 22-25, 2019

Outdoor Area F5, Stand 1210/3 April 8-14, 2019

info@gomaco.com ❘ www.gomaco.com Long, straight runs are nice. But many of you have curb and gutter projects with short runs, radii and corners in parking lots or tight locations. GOMACO’s Xtreme curb and gutter machines have zero-turn capabilities for maneuverability. You’ll be able to place more curb than ever before and move your machine in ways you have never moved before. You’ll be able to pour a tight radius that you could only dream of before. GOMACO’s proprietary G+ controls makes your concrete paver smoother and easier to operate. Our worldwide distributor network and our corporate team always stand ready to support you. So, if you want a Zero-Turn GOMACO Paver for your next paving season, you better call now or see us at the show. Our worldwide distributor network and our corporate team always stand ready to serve and assist you. Visit our booth at World of Concrete or Bauma 2019 and see our latest technology and talk with our paving experts!

CONCRETE STREETS AND HIGHWAYS ❘ AIRPORT RUNWAYS ❘ CURB AND GUTTER ❘ SIDEWALKS RECREATIONAL TRAILS ❘ SAFETY BARRIER ❘ BRIDGE PARAPET ❘ BRIDGE DECKS ❘ IRRIGATION CANALS GOMACO CORPORATION IN IDA GROVE, IOWA, USA ❘ 712-364-3347

OnSite_Dec_Gomaco.indd ONSITE_DEC18_LAZ.indd1 38

2018-11-27 2018-12-04 2:04 10:22 PM AM

SILICA DUST they are, but they move to another province, nothing’s really changed and they’re doing the same job but in fact they’re over-exposed.”

With the exception of Yukon, OELs for silica dust are based on the threshold limit values (TLVs) set by the American Conference of Governmental Industrial Hygienists (ACGIH).

While provinces such as Manitoba, Newfoundland and Labrador, Nova Scotia and Prince Edward Island automatically adopt the ACGIH TLVs, others have a specific review process.

That process can include a review of currently available scientific studies, exposure information from industries, available methods and instruments for determining exposure levels and the ability to meet lower OELs.

“By province, there are so many different regulations for exposures.”

– Rick Tunks, HD Supply Brafasco Limits may also vary due to the types of industries present in a province or territory and the economic impact on those industries, says Anna Dalipi, technical specialist at the Canadian Centre for Occupational Health and Safety (CCOHS).

Timing introduces another factor. British Columbia and Ontario review the OELs every year, while Alberta reviews every five years. New Brunswick and Quebec, meanwhile, don’t have a specific review period.

“By province, there are so many different regulations for exposures,” says Rick Tunks, safety program manager for HD Supply Brafasco. “There’s talk that Ontario will be lowering [its OEL]... And I think when that happens it’s really going to shake everybody up.”

Like OELs, Occupational Health and Safety (OHS) regulations fall under provincial and territorial jurisdiction.

Dalipi says there are no proposals to regulate any industry using a central federal regulation as far as CCOHS is aware, but adds that the Canadian Association of Administrators of Labour Legislation is currently looking into synchronizing some of the provincial and territorial health and safety requirements.

Still, it’s an uphill battle.

“Asking all the provinces to agree as

Occupational Exposure Limits (OELs) by province or territory

150

0.05

0.05

0.025

0.025

0.025

0.025 0.05

0.05

0.025

0.05

0.025 0.05

OELs are in mg/m³, measured over an eight-hour shift OELs are for silica, crystalline – cristobalite Yukon exposure limit measured in particles/mL with a konimeter ACGIH 2018 TLV is 0.025 on-sitemag.com / 39

2:04 PM

ONSITE_DEC18_LAZ.indd 39

2018-12-04 10:22 AM

SILICA DUST

to what they should put into a harmonized piece of legislation around health and safety? Very difficult; they have not been able to do that. They’ve been talking about this for close to 20 years… Would I like to see it? Absolutely. Is it likely in the near future? No, probably not,” Curtis says.

Many provinces and territories issue guidelines, codes of practice or tools to help employers meet regulations for silica dust, Dalipi says. For example, Newfoundland and Labrador has issued a code of practice under its legislation, while Ontario and British Columbia have issued guidelines.

“B.C. led the way in this,” says Brian Ferguson, director of Health, Safety & Environment at EllisDon’s Civil Division.

“I think since about 2014, and it could

WORKER PROTECTION STRATEGIES According to Carex, a research institution that tracks carcinogens, approximately 380,000 Canadians – mostly construction workers – are regularly exposed to silica at work. Regardless of the province or territory, it’s the employer’s responsibility to protect workers from harmful RCS exposure.

“Once you get past the regulatory speak, it is pretty simple,” says Steve Ipek, marketing manager at Bosch. “Have proper masks, have proper tools, have proper signage and make people aware that there is cutting going on on the job

be even prior to that, we’ve had to have proper silica controls and policies and plans in place at many of our projects in B.C. We’ve adopted those templates and

made them available within our corporate library.”

In 2017, WorkSafeBC imposed far more stringent standards for silica dust.

site and that there will be dust in the air so that they have the option to put on a mask as well.”

When it comes to silica control measures, Tunks says personal protective equipment (PPE) should be a last resort.

“The best way would be to try and use products that don’t contain silica, thereby eliminating the hazard,” he says, adding that the next best method would be to “administrate the hazard out.”

“Maybe you can rotate that individual from a job that might contain silica to another job, instead of giving that person an eight-hour exposure to it,” he says.

The third approach is to “engineer the hazard out” with the use of tools, which he says will protect the worker and speed the job up.

“More than half the time on the job site is clean up and it’s not value added work… but it’s required. If you can minimize the amount of clean up time, the amount of wasted labour on collecting dust and sweeping and what not, then you’re more efficient and you’re making more

money and you can move onto the next job quicker,” Ipek says.

The concentrations of RCS will determine the appropriate protective measures.

For example, Tunks says a powered air purifying system will offer a high level of protection. When levels rise, a conventional half facepiece with a P100 filter would not suffice and a full facemask would need to be worn.

“It’s not just the lungs that we’re concerned about,” Tunks adds. “When we talk about hazard assessments… we look at the whole body. We’re looking at the eyes, we’re looking at the skin, we’re taking everything into consideration when we try and choose the best products suited to each application.”

Manufactures and distributors like 3M, Bosch and HD Supply offer a slew of products to control RCS concentrations, such as power tools connected to HEPA filters, which capture the hazard at source.

“I think one of the most important things is continuing to educate the workers about various hazards, silica being one of them. I think we have a much more knowledgeable worker population than ever before,” Curtis says.

40 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 40

2018-12-04 10:22 AM

uses data collected by a team of researchers at the University of British Columbia School of Population and Health to determine exposure levels and generate a control plan.

McKenna says he hopes to take the tool coast-to-coast – a goal made more complex by varying regulations across the country.

“It just makes it even harder to achieve our collective goal… to keep workers safe and free from health and safety risks,” he says. “It’s going to take some really dedicated people because, if I can be candid, whenever you insert money, things can get a bit complicated.

The new standards allow employers to rely on objective monitoring data, such as industry surveys and peer reviewed scientific literature, to develop an exposure control plan.

With limited data available, the BCCSA developed the Silica Control Tool, which

HARMONIZATION Despite efforts to educate workers about the hazards of silica, it can be difficult to translate complex legislation to individual employees on the job site, especially for the construction industry, which is comprised of mostly small employers,

McKenna says.

“They want to be safe, they want to protect their workers, and they want to protect themselves, because oftentimes the owner is also the one doing the work…

It’s really difficult in that competing environment for the owner and workers attention to also understand the risk that silica actually presents.”

While McKenna has donned his “optimistic hat,” he admits harmonization will require political will.

“If we kept the goal pure, and the goal should be worker health and safety, we could get things done relatively quickly.

But you need champions at the regulatory level. Problem is, everybody is interested in their own house and not anybody else’s,” he says.

“We as a country can take a real leadership role and ensure silicosis doesn’t become the next asbestosis or the next mesothelioma. We can take strategies now to protect workers against the devastating disease of silicosis.”

on-sitemag.com / 41 OnSite_Dec_Vacuworx.indd 1

ONSITE_DEC18_LAZ.indd 41

2018-11-28 11:39 AM

2018-12-04 10:22 AM

OnSite_Oct_ConcreteExpo.indd ONSITE_DEC18_LAZ.indd 42 1

2018-09-20 2018-12-04 11:49 10:22AM AM

CCE PREVIEW

Canadian Concrete Expo returns to Toronto for 2019 After a successful premiere, the show is expected to double in size

T

he Canadian Concrete Expo is set to return to Greater Toronto February 6 and 7 for its second-straight year.

The annual show at the International Centre in Mississauga, Ont. is expected to double in size following its 2018 premiere.

Featuring several hundred exhibitors and educational seminars aimed at attendees from across the country, the expo shows off the latest equipment, technologies and other solutions Canada’s concrete construction pros are poised to take advantage of.

Stuart Galloway, president of the event’s organizer 20/20 Show Productions, says the 2019 edition of the CCE will cover as much as 23,000 sq. m (250,000 sq. ft.), up from the inaugural figure of 11,000 sq. m (120,000 sq. ft.) last year. About 250 exhibitors CANADIAN CONCRETE EXPO and upwards of 7,500 attendees Where: Mississauga, Ont. are expected over the two days.

Venue: The International BuildingPoint Canada and Centre Sika Canada serve as the two title sponsors for the Canadian Date: Feb. 6-7 Concrete Expo, while the Cement Association of Canada also lends its support. The platinum sponsors for the event include Lafarge Canada, Tilt Wall Ontario and Lehigh Hanson Canada.

Canada’s concrete industry totals approximately $8 billion and employs thousands of workers.

20/20 Show Productions says its team has packed 24 seminars, seven large equipment demos and 15 product presentations into CCE 2019. The seminar schedule includes topics such as integrating BIM into concrete jobs, a look at the latest innovations in concrete paving, advice on the use of admixtures, advances in the emerging concrete 3D printing space and ways to improve design to withstand earthquakes.

A wide range of experts – from engineers to chemists – will head the discussions.

Doors will open at 9 a.m. Feb. 6 and remain open until 5 p.m.

Attendees are afforded an extra hour of rest before the 10 a.m. opening time Feb. 7. on-sitemag.com / 43

11:49 AM

ONSITE_DEC18_LAZ.indd 43

2018-12-04 10:23 AM

CCE PREVIEW

WALKING THE FLOOR Products to watch for

WACKER NEUSON Among other products, Wacker Neuson’s booth at this year’s expo will feature the company’s 10-foot hydraulic ride-on trowel.

The CRT60X features a new easy-to-read display and a heavy-duty hydraulic system that includes a high capacity hydraulic pump and motors designed to address the ever-increasing demands of the flatwork industry.

HUSQVARNA

LEICA GEOSYSTEMS Leica Geosystems has packed its tough and versatile Leica Rugby CLA for display in downtown Toronto. The rotating laser system comes with a military-grade durability rating, with units able to withstand extreme temperatures, dust and all types of precipitation. The series can be put to use on a wide range of job site activities, from formwork levelling to grade checking.

Husqvarna is bringing its K 770 power cutter to Toronto next February. Boasting a 74cc engine and massive torque, the new piece of equipment has a 125 mm cutting depth with an impressive power-toweight ratio. The design is able to increase the preciseness of the cut, while the low weight makes for long, productive work shifts.

BOSCH

VACUWORX The Vacuworx CM 3 Compact Modular Vacuum Lifting System brings heavy-duty material handling capabilities to larger compact equipment such as skid steers and track loaders. The adaptable all-steel system can lift up to 3,000 kilograms (6,600 pounds) and can handle jobs such as concrete slab removal and trench placement.

Weighing in at just 7.7 pounds, but delivering 1.9 lb.-ft. of torque, Bosch plans to show off one of its latest rotary hammer drills. A job site workhorse, the GBH18V-26 1-inch SDS-plus EC Brushless Rotary Hammer packs a lithium-ion battery to drill both longer and harder than bigger alternatives.

It includes vibration control and proprietary KickBack Control technology.

44 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 44

2018-12-04 10:23 AM

OnSite_

ONSITE_DEC18_LAZ.indd OnSite_Dec_BuildingPoint.indd 45 1

2018-12-04 2018-11-30 10:23 10:53AM AM

CCE PREVIEW LIGCHINE INTERNATIONAL The ScreedSaver PRO 220 from Ligchine International combines the durability and accuracy of the ScreedSaver MAX 200 with the technology advancements and design from the top-of-the-line ScreedSaver BOSS 240. The PRO 220 can screed up to 220 sq. ft. per pass and comes equipped with a touchscreen diagnostic display, zero turn drive system and concrete additive screed head spray system.

NUDURA Featuring DURAMAX technology, NUDURA standard forms allow the placement of 12 sq. ft. (1.1 sq. m) of wall area in a single step, making them the largest standard insulated concrete forms in the industry. Their coverage results in quicker installation times, less waste and fewer seams, all translating to lower labour costs for contractors.

GOMACO Enhancing its industry-first three-track slipform curb and gutter machine, Gomaco has added new software and hydraulic systems to the GT-3600. The company says the Xtreme package makes tight radius paving easier by allowing operators to program the machine’s controller and letting the software manage track angles, steering adjustments and individual variable track speeds.

MACK Tough meets comfort in the all-new Mack Granite interior. From a new gauge cluster and dash layout that improves visibility and readability of key information to frequently used controls relocated within reach of the driver’s fingertips, the updated interior maximizes visibility and productivity. Exclusive seats and a flat-bottom steering wheel aim to help reduce fatigue and keep drivers comfortable.

BETON TROWEL Powerful and well-balanced, Beton Trowel’s BT900H-2PFH24 Hydraulic low-rider features a precision machined spider plate and trowel arms built to last. It includes an easy-to-use hydraulic steering system as well as a fully-adjustable seat. A Honda GX670 24 horsepower engine, lights, retardant spray and a full 12-month warranty come standard.

[[L

P

LIEBHERR Liebherr will feature its THS 110 D-K crawler concrete pump at the February show in Toronto. Designed specifically for concrete pile foundations, the THS 110 D-K can be flexibly manoeuvred into tight positions. Combined with a drilling rig the crawler concrete pump runs a 145 kW engine and has a max flow rate of 102 cubic metres per hour.

STIHL For limited access cuts, STIHL will show off its TS 440 Cut-Off Saw at the 2019 Canadian Concrete Expo.

The cutting wheel, which is exposed at the top, uses a sensor-activated wheel brake to halt rotation in a fraction of a second. The company says its 66.7cc engine makes it a versatile piece of equipment for pipe cutting, as well as for general purpose jobs.

HILTI The Hilti SIW 6AT-A22 cordless impact wrench includes intelligent electronics that when combined with the SI-AT-A22 adaptive torque module processes live data from the tool. The system is able to pre-tension anchors to an appropriate level and give the user direct feedback on the executed installation. The module allows the user to document the installations performed and transfer to a PC for detailed installation reports.

www.L www www.Li

46 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 46

2018-12-04 10:23 AM

OS_De

[[LABOR-SAVING ] MACHINES] LABOR-SAVING MACHINES POWERFUL POWERFUL

DURABLE DURABLE

AsAs the world’s #1 supplier of 2D laser and 3D GPS/LPS GPS/LPS guided guidedboom-extension boom-extensionconcrete concrete theworld’s world’s#1 #1supplier supplierof of2D 2Dlaser laserand and 3D GPS/LPS As the guided boom-extension concrete screeding machines, Ligchine continues the relentless pursuit pursuit of ofinnovative innovativedesigns designsby byoff off ering screedingmachines, machines,Ligchine Ligchinecontinues continuesthe the relentless ering screeding innovative designs by off ering compact, large, and mega-sized screeds to to fifillll all all of of your yourflflflatwork atworkneeds. needs. compact,large, large,and andmega-sized mega-sized screeds compact, your atwork needs.

ScreedSaverIIII II ScreedSaver ScreedSaver

MAX200 200 MAX MAX 200

PRO220 220 PRO PRO 220

BOSS240 240 BOSS BOSS 240

www.Ligchine.com www.Ligchine.com www.Ligchine.com

ONSITE_DEC18_LAZ.indd OS_Dec_Ligcchine.indd 147

2018-12-04 2018-11-1610:23 9:23AM AM

From chaos to control.

Say goodbye to paper, spreadsheets, and juggling solutions.

Procore Project Management is a construction platform that makes it easy for everyone on your project to collaborate. With access to realtime drawings and documents, you can get the job done rightâ&#x20AC;&#x201D;faster.

20% reduction in deficiency list items 40% average reduction in printing costs 92% of Procore users report faster daily logs

procore.com

OS_Dec_Procore_.indd ONSITE_DEC18_LAZ.indd 1 48

1.866.477.6267

2018-11-20 2018-12-04 1:28 10:23 PM AM

SOFTWARE

By Jacob Stoller

Job site automation: Can job sites be more like factories?

Automation is becoming more prevalent on-site, but there are limitations

W

olves and construction materials don’t have a lot in common, but finding them can present similar challenges. Thus, a presentation on tracking wolf packs became the inspiration for a unique solution for locating construction materials on job sites.

“I thought, ‘We could track materials that way,’” says the solution’s co-inventor, Carl Haas, who was serving as a participant at a National Science Foundation event in Lake Tahoe.

While the materials tracking solution can be used in many situations, Haas, who is a professor of civil engineering at University of Waterloo and president of the International Association for Automation and Robotics in Construction, was particularly interested in reducing the incidence of high value components going missing on large projects.

“What you get a certain per cent of the time,” Haas says, “is that a high dollar item – say a $100K alloyed globe valve that requires two years of lead time – gets lost under the snow or some bushes, and you just don’t find it. So you reorder, and with the delays, that might cost you millions.”

“If you can reduce these incidents by, say, 80 per cent, that’s a huge impact on the bottom line. And the actual cost of the technology is a very small fraction of that.”

What makes the approach affordable is the complementary use of two technologies – radio telemetry and GPS. Each tracked item is affixed with an inexpensive radio-frequency identification, or RFID, tag that can be pinged by a GPS-equipped handheld device. With the help of triangulation, a worker can quickly determine the exact location of thousands of items.

SELECTED TARGETS In order to find receptive markets, inventors have often taken aim at undesirable manual work that is dirty, tedious, or likely to cause injury. Masonry, being physically stressful and repetitive, has been a prime target since the 80s.

Thanks to recent improvements in technology, Construction Robotics, which is based in Victor, New York, now has a commercial solution called SAM, an acronym for semi-automated mason. As the name implies, the bricklaying and mortar-applying machine operates under worker supervision, increasing productivity and eliminating some of the more tedious aspects of the work.

“Every project is unique, which is not something that automation works well with,” says Zak Podkaminer, director of Strategy for the Rochester-area firm. “So the challenge is, how do you control the variables? That’s why we believe that collaborative

robots – a semi-automated approach – are the way of the future.”

Inspection work is another target. The affordability of drone technology and image capturing devices has made drone inspections not only safer, but more cost efficient in many applications.

For example, Halifax-based AeroVision Canada, which uses drones to collect data, was hired to gather data on the condition of the stonework at Halifax’s City Hall, a heritage building that has recently been refaced. “The cost was the same or less than just getting the scaffolding they would have needed to do the inspection with traditional methods,” says the company’s CEO, Trevor Bergmann. “Our method substantially reduced the overall risk, and nobody was needlessly working at heights.”

Drones are also commonly used by AeroVision Canada to inspect wind turbines, Bergmann notes, as well as to track work progress across large areas.

JOB SITE CHALLENGES The geographic dispersion of work and materials, plus variations in scale, terrain, and transportation requirements, make the average job site tough to automate. Haas notes that many attempts to introduce automation on job sites were shelved in the 90s because of limitations in robotic hardware and a relative lack of computing power.

“Processing power then was a hundred thousand or even a million times less per dollar compared with today,” Haas says, “so we’ve got way more opportunity now. Inertial motion units that used to cost a thousand dollars now cost two or three. Robots are lighter and more deployable. And now they’re 3D printing steel bridges and some pretty interesting concrete structures. So we’ve turned a corner.”

Much of the innovation is taking place in modular construction, which sidesteps many job site complexities. “At the most sophisticated end of the industry,” says Haas, “you’re seeing tremendous pre-fabrication, supply chain sophistication, and automation, and you’re seeing the impact.”

Haas notes that construction’s industrial sector, which is where automation is most prevalent, has seen annual productivity increases of over 5.2 per cent over the last decade, according to U.S. Bureau of Labor Statistics. “That’s significantly better than what manufacturing has seen,” he says.

Jacob Stoller is principal of StollerStrategies. Send comments to editor@on-sitemag.com on-sitemag.com / 49

1:28 PM

ONSITE_DEC18_LAZ.indd 49

2018-12-04 10:23 AM

RISK

By David Bowcott

Integrated Asset Delivery: Risk management for the entire lifecycle

I

n recent years there has been a resurgence of the Integrated Project Delivery model in the North American construction marketplace.

This method traces its origins to the heyday of North Sea oil exploration, when owners, design firms and contractors created a delivery model known as Project Alliancing as a way to improve outcomes. In this model, the owner guarantees the direct costs of design firms and contractors, but their profits, overheads and bonuses depend on the project’s outcome. By forcing all parties to operate collaboratively, the model steers projects toward a shared result.

Creating such a collaborative alignment is very difficult under the traditional Design-Bid-Build model used by the construction industry for decades.

The Integrated Project Delivery (IPD) method eventually evolved out of the Project Alliancing model. Keeping the core aspects of its predecessor in place, IPD adopted solutions from other collaborative models like the Special Purpose Entity model and Relational Contracting model.

At their heart, all of these models attempt to align key project stakeholders around project outcomes, and thus, encourage improved collaboration.

As the construction and asset management sector of the economy gets its act together around data collection and collaboration, we may soon be able to start comparing all delivery models and one day determine which model delivers the best results. We may very well find that the ideal model depends on the nature and attributes of the project it’s being applied to.

For now, we’re forced to use anecdotal experience and hypothesize what makes certain delivery models more effective than others. To that end, when looking at the IPD model, it clearly creates an environment for collaboration.

Many of the risks that inevitably manifest on a construction project – both during construction and into the operation of the asset – are the result of misaligned interests and poor communication. When profit, overhead and incentive compensation are combined and shared by all parties and delivered to each collaborator only if desired project outcomes are achieved, you can understand why this model creates a team environment and highly incentivizes all-party communication.

At this point, it makes sense to look at this delivery model from the perspective of the insurance industry, which can be a great source of feedback to all industries experimenting with new solutions.

In the case of IPD, the model contains what is probably one of golden rules of risk management: alignment of interests via skin in the game.

Several of the insurance industry’s greatest risk finance solutions are founded on this principal. The insured is incentivized to manage risk due to the exposure they face if risk isn’t properly managed. The insurance sector has long integrated this principal through simple solutions like a deductible on insurance policies. In this case, there is some pain if you suffer a loss, but the benefit of insurance is that that pain is not catastrophic for the insured. It is, however, aligning.

Some insurance solutions are starting to use funded deductibles, also known as retentions, which create a “carrot” rather than the “stick” of an unfunded deductible. When you look at the structure of the IPD model, the parties are aligned through the owner’s exposure to the project costs and the non-owner’s exposure to non-payment of overhead, profit and bonus. Models or policies that align the interests of all involved parties and encourage collaboration and communication have always been profitable for the insurance sector. Thus, the insurance sector should encourage this model to grow.

Perhaps the sector should incent such growth by creating a platinum risk management solution for such models? Given the aligning power of IPD and its potential to create more certainty around construction phase outcomes, such a model could improve certainty around the entire life of an asset.

Design firms, contractors, subcontractors and suppliers are invaluable partners in an asset’s lifecycle, and it’s reasonable to assume their involvement at all stages could significantly improve the total cost of ownership. When considering that roughly 10 to 15 per cent of an asset’s present value cost is made up of construction costs, with operating costs accounting for the remaining 85 to 90 per cent, a model that combines IPD alignment and whole-life asset planning might just be the answer all asset owners have been looking for.

Given the growing interest in collaborative models and the increasing integration of technology, the birth of an Integrated Asset Delivery model in the coming years is certainly not out of the realm of possibility.

David Bowcott is Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions. Please send comments to editor@on-sitemag.com.

50 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 50

2018-12-04 10:23 AM

ADVERTISERSâ&#x20AC;&#x2122; INDEX & WEBSITES Adrian Steel.......................... www.AdrianSteel.com .................................................. 27 B2W Software........................ www.b2wsoftware.com/OnSite ..................................... 53 Building Point Canada.......... www.buildingpointcanada.ca ...................................... 45 Canadian Concrete Expo....... www.CanadianConcreteExpo.com ................................ 42 Case...................................... www.casece.com ........................................................... 6 Detroit Diesel........................www.demanddetroit.com/engines/DD8 ................. 2, 3, 17 Ford.......................................www.ford.ca/superduty ................................................. 13 Gomaco................................. www.gomaco.com ........................................................ 38 Husqvarna............................ www.husqvarna.com/ca-en ......................................... 36 ICUEE.................................... www.icuee.com ............................................................ 23 Kobelco................................. www.kobelco-usa.com/excavators ................................. 4 Kubota Tractors..................... www.kubota.ca ............................................................ 19 Ligchine International........... www.ligchine.com ........................................................ 47 Mack..................................... www.MackTrucks.com/Granite ..................................... 35 NHES..................................... www.nhes.ca ............................................................... 11 Procore.................................. www.procore.com ......................................................... 48 Quikrete................................ www.quikrete.com ....................................................... 31 Sany America........................ www.sanyamerica.com ................................................ 56 Superior Tire & Rubber.......... www.superiortire.com .................................................. 51 Uline..................................... www.uline.ca ............................................................... 18 Vacuworx............................... www.vacuworx.com ...................................................... 41 Viewpoint.............................. www.viewpoint.com ....................................................... 9 Western Star.......................... www.westernstar.com .................................................. 16 World of Asphalt.................... www.worldofasphalt.com ....................................... 54, 55 World of Concrete.................. www.worldofconcrete.com ........................................... 32

Professional content for professional contractors

visit

on-sitemag.com to subscribe today

on-sitemag.com / 51

ONSITE_DEC18_LAZ.indd 51

2018-12-04 10:23 AM

CONTRACTORS & THE LAW

By Siobhan Small

Credit in the construction industry

W

hen we think of credit, we usually think of a method of paying for goods or services.

In the construction context, however, credit can serve a role analogous to that of a performance bond.

While owners can choose to request various different kinds of performance guarantees from their contractors, the letter of credit is a common one. All contractors should therefore understand the basic function of letters of credit in a construction project and why an owner might make this request.

WHAT Every letter of credit involves three main parties – the issuer (usually a bank), the applicant and the beneficiary. The letter of credit itself is an instrument obligating the issuer to pay money to a beneficiary based on terms outlined by the applicant.

There are two main forms of a letter of credit. The first, and most well-known, is the documentary, or commercial, letter of credit, which is used as payment for goods or services. The service provider that benefits from the letter of credit draws on it by presenting to the bank proof of a purchase. The necessary form of proof is set out in the letter of credit, and its presentation obligates the bank pay the service provider as if the bank were the purchaser.

The second type is the standby letter of credit, which acts as security rather than payment. The letter of credit is prepared to secure the obligations of one party to another and is cashed only if the obliged party defaults. In the construction industry, standby letters of credit secure the proper and timely construction of the project.

In practical terms, the difference between these kinds of letters of credit lies in the role of the applicant. Does the applicant intend to pay the beneficiary, or is the applicant going to be paid and intends to reassure the payer that it will perform its service?

Under a documentary letter of credit, all parties expect that the beneficiary will draw on this letter of credit at some point as it is an alternative form of payment. In a standby letter of credit, the applicant is the service provider and has no intention of paying money to the beneficiary, who is the consumer. The standby letter of credit is merely security in the event that the applicant fails to perform its service. The beneficiary is then assured to have the funds it needs to pay a third party to complete that work.

WHO For a construction project, the issuer is typically a bank. The bank is responsible for providing the funds if the letter is drawn upon.

The applicant, also known as the customer or the borrower, is the individual or company performing the work the bank is guaranteeing. The beneficiary is the recipient of the work, typically the owner.

The letter of credit represents a unique legal relationship between these parties. The applicant has a relationship with the bank as its customer. The applicant and beneficiary will also have their own agreement that creates the need for this credit, but the letter of credit creates a contract between the bank and the beneficiary that stands apart from these underlying relationships.

While the letter of credit depends upon a relationship between the bank and the applicant, the terms of the letter of credit do not control that relationship. Because the letter of credit dictates the bank’s obligation to the beneficiary, it cannot obligate the applicant to pay the bank back. The parties will therefore come to a separate reimbursement agreement at the same time as the letter of credit application. Remember that the bank cannot refuse to pay the beneficiary based on any outside relationship, so without this agreement, or some form of security, the bank would have to pay with no recourse to recover its funds from the applicant.

WHY The bank’s direct and independent obligation to the beneficiary is why letters of credit are so popular with owners. When deciding whether to pay a beneficiary who says a contractor has failed to perform its work, the bank can only look at whether the beneficiary has presented the documents outlined in the applicant’s instructions without regard to the underlying relationships. If the owner has the right documents, the bank must pay. These conditions are difficult to dispute. Since issuers are reliably solvent, beneficiaries of a letter of credit enjoy a reliable source of cash with little risk of delay.

Siobhan Small practices construction law at Borden Ladner Gervais LLP. This article is for information purposes only and may not be relied on for legal advice. Please send comments to editor@ on-sitemag.com.

52 / DECEMBER 2018

ONSITE_DEC18_LAZ.indd 52

2018-12-04 10:23 AM

OnSite_

ONSITE_DEC18_LAZ.indd OnSite_Dec_B2WSoftware.indd 53 1

2018-12-04 2018-11-2710:23 1:50AM PM

OS_AUG_WORLDOFASPHALT.indd ONSITE_DEC18_LAZ.indd 54 1

2018-12-04 10:23 AM

ONSITE_DEC18_LAZ.indd 55

2018-08-02 10:23 2018-12-04 10:27 AM

OnSite_Dec_Sany.indd 1 56 ONSITE_DEC18_LAZ.indd

2018-11-27 10:23 2018-12-04 12:49 AM PM