JUNE 2019
HATS OFF TO
CANADA’S TOP CONTRACTORS
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VOLUME 64, NO.4/ JUNE 2019
g
9:39 AM 10:49 PM
TOP CONTRACTORS 27 The Top 40 Our list of the country’s largest builders
30 Staying on top Attracting and retaining talent has never been tougher – or more integral to success
37 Top Five Under 50
30
A familiar name earns the top spot for the third time in six years
IN THIS ISSUE 7 Comment The tariffs are gone, but don’t hold out for cheaper steel and aluminum
10 News
The major developments
20 Construction stats
44
The key figures
COLUMNS 56 Risk
51
Industry 4.0: Embracing technology for asset performance certainty
60 Contractors and the Law New rules to consider when using drones on job sites
62 Software An ounce of prevention: The importance of planning IT projects
61 Index of Advertisers
44 Playing the long game
51
Machine control developers cautiously build their way toward full autonomy
For builders, embracing the sustainable building ‘paradigm shift’ isn’t optional
It’s not easy going green
on-sitemag.com / 5
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COMMENT
The tariffs are gone, but don’t hold out for cheaper steel and aluminum
Get the latest construction news! Follow us on Twitter @OnSiteMag
Prime Minister Justin Trudeau, with several cabinet ministers in tow, took a victory lap through the Hamilton, Ont. Stelco plant May 17, hours after news of the tariffs being lifted first surfaced last month. Predictably, Trudeau credited his government’s countermeasures for the U.S. acceding to Canadian demands to shelve its steel and aluminum tariffs. While the American justification for the metal tariffs was tenuous, at best, it had been just short of 12 months since they were imposed. Ottawa had responded in kind, slapping retaliatory duties of 25 per cent on steel and 10 per cent on aluminum. Costs in numerous industries climbed sharply as both countries dug in for the long haul. But even with the tariffs eliminated, don’t expect prices for construction steel and aluminum to come plummeting back to Earth. Since the duties were put in place last June, they’ve driven up the prices of vital materials such as rebar and heavy plate. Over the course of 2018, the cost to construct residential and non-residential buildings rose 5.1 and 4.6 per cent, respectively. Statistics Canada blamed much of the increase on the metal tariffs. In the first quarter of 2019, prices continued to inch upward, with non-residential costs up another 0.8 per cent and residential prices up 0.3 per cent. The federal agency said contractors continued to point to the “lingering impacts” of the steel tariffs for the higher costs. Though prices for steel and aluminum are “still high,” they’ve started to stabilize over the first three months of 2019, Statistics Canada noted in its most recent assessment this May. But scrapping the tariffs doesn’t mean an immediate return to lower costs. Gerard McCabe, the managing director for Canada at real estate consultancy Turner & Townsend, for instance, isn’t optimistic about
prices coming down. “It’s the new normal,” he said in a recent interview. “Unless the market changes – unless we’re building less – and volume of construction drops and the market becomes a bit more competitive, I’m not expecting that the prices will drop just because the tariffs get removed.” Costs have gone up considerably in the past year, but that’s done little to stifle building in Canada’s big markets. Activity in Ottawa, Toronto, Montreal, Vancouver and other major centres has remained buoyant. While this is good for builders boasting healthy backlogs, it also indicates to metals suppliers that the market can bear the added costs. The end of steel and aluminum tariffs will give manufacturers an excellent opportunity to increase their profitability while holding prices steady. Those footing the higher bills for steel and aluminum – typically the owner, end-user or, in the case of infrastructure, the public – will continue to get saddled with the higher bills. That is, at least until construction slows and forces the competition to get fiercer, McCabe said. As they have for the past year, contractors will need to take extra precautions to ensure they aren’t caught flat-footed. Continuing to build in a buffer to absorb price fluctuations and using escalation clauses in contracts are both good places to start. Still, all this isn’t to say the end of the tariffs is bad news for construction. Even if steel and aluminum prices don’t return to their pre-tariff levels, they should stabilize, meaning developers will be dealing with one less variable when deciding whether or not to pull the trigger on their next project.
David Kennedy / Editor dkennedy@on-sitemag.com on-sitemag.com / 7
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CONTRIBUTORS
MEET OUR CONTRIBUTORS FOR THIS ISSUE
www.on-sitemag.com / Fax: 416-442-2230
PUBLISHER | Peter Leonard (416) 510-6847 pLeonard@on-sitemag.com
SAUL CHERNOS / Freelance Writer
EDITOR | David Kennedy (416) 510-6821 dkennedy@on-sitemag.com
On how Canada’s Top Contractors are taking the labour shortage in stride: “Construction activity continues to fire on all cylinders in Canadian urban centres and is faring well in most other areas of the country… To ensure they can continue to recruit and retain top talent, Canadian construction companies are upping the employee value proposition.”
ASSISTANT EDITOR | Jillian Morgan (416) 510-5201 jmorgan@on-sitemag.com MEDIA DESIGNER - TEAM LEAD | Lisa Zambri lzambri@annexbusinessmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 dskene@on-sitemag.com ACCOUNT COORDINATOR | Kim Rossiter (416) 510-6794 krossiter@on-sitemag.com CIRCULATION MANAGER | Urszula Grzyb (416) 442-5600 x3537 ugrzyb@annexbusinessmedia.com
JACOB STOLLER / Principal, StollerStrategies On why construction companies shouldn’t overlook IT project planning: “No contractor would show up on a job site on day one with no plans or schedules. Yet many embark on information technology projects with a very vague idea of what they are trying to accomplish.”
Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.com COO | Scott Jamieson sjamieson@annexbusinessmedia.com Established in 1957, On-Site is published by Annex Business Media 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 Publications Mail Agreement No. 40065710 ISSN: 1910-118X (Print) ISSN 2371-8544 (Online)
DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On embracing Industry 4.0 to take more control over your assets: “The fourth industrial revolution is upon us… Some believe the impact from this industrial revolution could be greater than the impact of the previous three combined. That is quite a claim when you consider the productive might generated by the previous three.”
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 $49.50 per year, Outside Canada US$87.00 per year, Single Copy Canada $13.50. 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 ©2019 by Annex Publishing & Printing Inc may not be reprinted without permission.
KATHERINE AYRE AND ADRIENNE HO / Borden Ladner Gervais LLP On new rules to consider when flying a drone on a construction site: “The potential use of drones on construction sites is an exciting area of development. That said, time should be taken to learn the new regulations and consider if appropriate risk management policies and procedures are in place before you take off with your drone.”
On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. DISCLAIMER This publication is for informational purposes only The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals.
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The
INDUSTRY NEWS
INDUSTRY>NEWS Aecon consortium wins $639.8M contract to widen 18-km stretch of Hwy. 401 just west of Toronto TORONTO—Infrastructure Ontario has inked a $639.8 million contract to widen a perennially gridlocked segment of Highway 401 on the west end of the Greater Toronto Area. The crown-owned agency singled out the West Corridor Constructors consortium as the preferred bidder for the project this March and Aecon Group Inc. announced April 29 it had finalized the major roadbuilding deal. Along with Aecon, the build team includes Parsons Inc. and Amico Design Build Inc. Under the design-build-finance
(DBF) contract, Parsons, Hatch and EXP are responsible for design, while National Bank will take on the financing. Construction on the 18-kilometre widening project is scheduled to begin toward the end of this year. The job consists of adding lanes to the busy Ontario highway, which currently spans between six and eight lanes from the Credit River in Mississauga and Regional Road 25 in Milton. From east to west, the project will expand the 401 to 12 lanes from the Credit River to Winston Churchill Boulevard; 10 lanes from Winston Churchill to the
Highway 407 interchange; 12 lanes from the 407 to just east of the James Snow Parkway; and finally to 10 lanes between James Snow and Regional Road 25. High occupancy vehicle lanes will be installed along the median as part of the project. Related bridge upgrades, culvert replacements and utilities work are all included in the scope of work. The construction team said it expects work on the highway to last about three years. Aecon plans to reach substantial completion on the project in the fourth quarter of 2022.
SURREY, B.C.—Plans to start work on a replacement for the Pattullo Bridge that connects Surrey to New Westminster, B.C. took a step forward May 2 as the province’s ministers of Environment and Climate Change Strategy and Municipal Affairs and Housing signed off an environmental assessment for a new four-lane bridge. Along with four lanes dedicated to vehicles, the new bridge will include separated paths for pedestrians and cyclist on both sides of the span. It will also be built to meet modern seismic standards. The current span over the Fraser River is now more than 80-years-old. Claire Trevena, B.C.’s minister of Transportation and Infrastructure, noted it’s one of the oldest in Metro Vancouver. “Pattullo is an essential link for the 68,000 motorists who use it daily, but it has needed to be replaced for years,” she said in a statement, adding that the new bridge is on track to open by 2023. The environmental approval comes with 20 conditions, including construction and demolition, environmental management plans and a fish and wildlife habitat offsetting plan. Construction is expected to get underway this year, though the procurement process remains ongoing. In February, the province shortlisted three construction teams for the $1.37 billion project. Once the winning bidder is chosen, plans have crews breaking ground 100 metres upstream from the current span. Several other approvals from all tiers of government, as well as an environmental review permit from the Vancouver Fraser Port Authority, are still required.
PHOTO: GOVERNMENT OF B.C.
Environmental nod keeps B.C.’s $1.4B Pattullo bridge on track for construction to start this year
The current Pattullo Bridge is one of the oldest in the Vancouver area at more than 80-years-old. The new span will be built about 100 metres upstream from the existing bridge. Along with four lanes for vehicles, it will have separated pathways on each side for pedestrians and cyclists.
10 / JUNE 2019
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PHOTO: AÉROPORTS DE MONTRÉAL
INDUSTRY NEWS
Pomerleau, SNC-Lavalin and Kiewit win contract to oversee $2.5B Cityside project at Montreal airport MONTREAL—A consortium comprised of Pomerleau, SNC-Lavalin and Kiewit has won a construction management contract to stickhandle the early stages of a major infrastructure project at the Montreal-Trudeau International airport. Aéroports de Montréal, which oversees the city’s two major airports, said May 15 that the three prominent contractors will take the lead on the Cityside development program at Montreal-Trudeau under an initial five-year contract. Under the terms of the deal, the PSK Construction team will manage the project’s design, assess constructability and look for ways to schedule and phase construction at the busy airport that moves about 20 million passengers a year. “By using this innovative contract model of risk-based construction management, ADM will benefit from additional significant expertise for the implementation of this program, which will definitely change the face of YUL Montréal-Trudeau International airport,” Philippe Rainville, the airport authority’s president and CEO, said in a statement. “We are pleased to be working with companies that have solid expertise in carrying out projects of a similar scope.” While the value of the construction management contract was not released, ADM plans to spend $2.5 billion on the
overall Cityside project. The development work targets mainly the airport’s access infrastructure. It aims to increase the number of ways passenger can get to the airport, as well as revamp existing areas. Construction of an underground station to link the airport with the new Montreal light rail system (Réseau express métropolitain, or REM), which is currently being built, is one part of the project. The redevelopment of the current passenger drop-off/pick-up zones and the airport’s sprawling parking complex are two of the other major components. “Whether for a long trip overseas or for a few hours of transit, airports still play a key role in a travel experience,” Pierre Pomerleau, president and CEO of Pomerleau, said in a statement. “Together with our partners, we will implement cuttingedge designs, leverage the interdisciplinary capabilities of our teams, and benefit from innovative technologies.” Work on the multibillion-dollar Cityside project is expected to take place in stages over the next five to 10 years. At the same time, the airport is also planning a separate initiative to add a new terminal and improve its runways and taxiways to increase aircraft capacity. Both projects aim to upgrade existing infrastructure to get more passengers in the air.
CRUSHING
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INDUSTRY NEWS Toronto compromises on changes to noise bylaw that threatened construction TORONTO—Continuous concrete pours and heavy crane work will continue to be permitted overnight throughout Toronto, but will be subject to new restrictions following a vote at city hall April 17. The change represents a compromise between councillors pushing for a blanket ban on construction work after 7 p.m. and the industry aiming to maintain the status quo. Prior to the vote, concrete pours and heavy crane work enjoyed an unrestricted exemption from the city’s noise bylaw that bans construction work overnight. Starting Oct. 1 the city will institute a permitting process, requiring job sites to gain temporary exemptions to conduct this sort of work. While the industry preferred to maintain the original exception, it says the permitting process is far better than the alternative, which would have blocked all after-hours construction. Over the previous several weeks, the Residential Construction Council of Ontario (RESCON), LiUNA Local 183, the Building and Land Development Association (BILD) and the Ontario Formwork Association had been lobbying to halt the
bylaw amendment. They said it threatened at least 7,000 construction jobs and would have added months or years to high-rise construction timelines. “This amendment represents a workable compromise for industry,” Richard Lyall, RESCON’s president, said in a statement. “We want to work closely with Toronto residents, City Council and [Municipal Licensing and Standards] staff to ensure projects are completed as quickly and efficiently as possible. As suggested by Mayor John Tory, we want to wrap up new development in a timely manner so we can ‘get out of current residents’ hair,’ as well as house Toronto’s future residents.” Councillor Ana Bailão introduced the motion that included the compromise in council. The amendment, which passed by a wide margin, requires builders to apply to the executive director of MLS for a permit and display the exemption permit for seven days prior to the work, among other stipulations. Along with tightening the restrictions on job site noise, changes to Toronto’s noise bylaw include limits on motorcycles, leaf blowers and outdoor music.
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INDUSTRY NEWS PCL wins $217.6M contract to redo exterior of major federal office tower complex in Gatineau, Que. GATINEAU, Que.—One of the most recognizable sets of office towers in the Ottawa area is poised to undergo a major facelift. Public Services and Procurement Canada said April 15 it has awarded a $217.6 million construction management contract to PCL Constructors for wide-ranging exterior work on Les Terrasses de la Chaudière (LTDLC) complex in Gatineau, Que. The federal building facility was originally built in 1978 and sits just across the Ottawa River from Parliament Hill. It houses thousands of workers from Canadian Heritage, the CRTC and the Canadian Transportation Agency, among others, in three brownbricked buildings, the tallest of which stands 30 storeys. “Today marks another important step toward reimagining the design and use of this downtown Gatineau complex,” said Steven MacKinnon, the MP for Gatineau and the parliamentary secretary to the minister of PSPC. “This much-needed work will transform and rejuvenate the complex for the 21st-century needs of the public service.” The overhaul involves replacing the roof, exterior brick walls and windows in each building. Design work for the project has been underway since 2017, with the approval of the final design coming in early April. Currently, overhead protection is in place on the site to shield pedestrians from the crumbling brick veneer. The original construction method has caused premature cracking in the bricks and requires regular maintenance, the government says. The recladding project will replace the bricks with a predominantly glass and aluminum facade. It will allow the overhead protection to be removed, the regular maintenance to cease and the complex’s inner courtyard to reopen. Construction on the project is scheduled to start this fall. Work is expected to run until winter 2024, with the government agencies and other businesses located in the LTDLC complex remaining open during construction. A separate project to redo the interior of the federal facility is also being planned. BEFORE
STACKING
PHOTOS: PSPC
AFTER
Les Terrasses de la Chaudière complex on the Quebec side of the Ottawa River houses thousands of federal employees. The facility was built in the late 1970s, but the crumbling brick veneer has caused problems for years. Overhead protection and regular maintenance are required to shield pedestrians from possible injuries from falling bricks.
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INDUSTRY NEWS
Ontario budget promises overhaul of apprenticeship, skilled trades system TORONTO—The scarcity of skilled workers across Ontario is no secret. Construction employers, among others, often face serious challenges finding tradespersons to fill roles, resulting in project delays and higher costs. The 2019 Ontario budget, the first released under Premier Doug Ford’s Progressive Conservatives, is taking aim at the issue, promising a modernized apprenticeship and skilled trades system that better matches the needs of industry. Vic Fedeli, the province’s minister of Finance, introduced the new budget at Queen’s Park April 11. Several years of lessening red ink, looser alcohol rules and constraints on spending growth are among the other highlights. From a skilled trades perspective, the government is laying the groundwork for a number of changes, though it did not move too far into specifics. Foremost among them, the PCs plan to establish a new governance framework to replace the Ontario College of Trades. It passed legislation to wind down the regulatory body last fall. Alongside building this new framework, the province said it will create a financial
incentive system to support employers training apprentices, as well as develop a digital portal to help connect apprentices with job opportunities. The budget commitment also includes what the government described as a “flexible framework” for workers that may want partial training in one trade and full certification in another. The Ontario Skilled Trades Alliance (OSTA), which represents organizations that employ more than 100,000 skilled workers in Ontario, including numerous construction associations, commended the plan. “We are thrilled that the government has recognized the need for truly transformative changes to the apprenticeship and skilled trades system,” Patrick McManus, OSTA’s chair, said in a statement. “For years, employers have been calling for an overhaul of how apprenticeships, train-
ing, and skills promotion are managed in Ontario.” McManus added that the budget will help skilled workers stay in step with the evolving needs of different industries and the overall economy. Within schools, the government also plans to establish a program that steers students from kindergarten to Grade 12 toward the trades — a long-time point of contention for the Progressive Contractors Association of Canada (PCA). “For too long, Ontario students have been told that a skilled trades job is a dirty, dead-end job,” said Sean Reid, PCA’s vice-president and regional director for Ontario “The Ford government should be commended for taking steps to end this stigma, and cultivate a true parity of esteem for the trades alongside other career paths within our school system.”
Pomerleau consortium picked to build two long-term care facilities in Newfoundland ST. JOHN’S—A consortium headed by Quebec-based contractor Pomerleau and investment firm Fengate Asset Management has been tapped to build two new long-term care homes in central Newfoundland. NL Healthcare Partners topped two other construction teams vying for the project. It will be responsible for designing, building, financing and maintaining the two new healthcare facilities, planned for Gander and Grand Falls-Windsor.
The value of the contract has not been released, but will be revealed once the province and the construction team reach financial close — expected in the second quarter of this year. Along with Fengate as the project’s developer and Pomerleau as the designbuild contractor, NL Healthcare includes Architecture49, G architects and Gibbons Snow Architects as designers, as well as WSP Canada, Malcolm Pinto Engineering and Jewer Bailey Consultants on the engi-
neering side. The facilities in Gander and Grand Falls-Windsor will each include 60 beds and aim to relive pressure on the province’s long-term care system. A possible future expansion of up to 105 additional beds has been built into the design plans for the Gander facility. Construction on the two sites is expected to start this year. The province said the two jobs will create 343 people-years of employment.
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CONSTRUCTION STATS
Workers Employed in Construction by Month
A selection of data reflecting trends in the Canadian construction industry
2018
CONSTRUCTION LABOUR MARKET SNAPS FOUR-MONTH LOSING STREAK AS EMPLOYMENT SURGES IN APRIL The industry created 29,200 new jobs, seasonally adjusted, adding a full two per cent to its workforce between March and April. The building industry now employs 1.465 million workers, according to the latest Labour Force Survey from Statistics Canada. The huge gain outpaced a very strong showing by the overall economy, which added just over 100,000 jobs, or 0.6 per cent, on the month. The four previous months of decline in construction employment had pushed the year-over-year figures for the industry into the negatives, but the April surge put it back on the positive side. About 32,000 more workers, or 2.2 per cent, have positions in construction versus the same month last year. Statistics Canada said the biggest gains in construction were concentrated in Ontario and British Columbia.
MARCH MARKET SHARE
January 1,444.9 February 1,438.3 March 1,435.9 April 1,465.1 In thousands of workers, seasonally adjusted SOURCE: STATISTICS CANADA
IMPACT OF STEEL TARIFFS ‘LINGER’ AS CONSTRUCTION COSTS RISE IN FIRST QUARTER
Commercial building 57.3%
2019
January 1,433.9 February 1,433.9 March 1,452.2 April 1,433.3 May 1,420.3 June 1,447.5 July 1,435.2 August 1,418.8 September 1,446.8 October 1,443.4 November 1,458.2 December 1,453.4
Industrial building 19%
Institutional building 23.7%
COMMERCIAL BUILDING KEEPS CLIMBING Investment in commercial building construction increased for the 14th consecutive month in March, reaching $2.7 billion, according to Statistics Canada. The industrial component of the non-residential market jumped 1.3 per cent to $896 million, while institutional construction posted a small increase to $1.1 billion after 11 months of consecutive decline. On an unadjusted basis, non-residential investment in new construction has increased 8.1 per cent year over year to $6.6 billion, largely due to gains in the commercial and industrial segments. Though total investment in building construction dipped 1.2 per cent in March to $14.2 billion, losses were partially offset by a 0.5 per cent increase in the non-residential sector to $4.7 billion.
Construction costs climbed again in the first quarter of 2019, with some contractors continuing to point to high steel prices as the root cause. According to Statistics Canada, construction costs for non-residential buildings increased 0.8 per cent in the first three months of the year, while prices for residential work rose 0.3 per cent. Despite the lasting effect of steel tariffs imposed by the U.S. a year ago, the Canadian agency noted prices for steel began to stabilize in the first quarter. Costs for non-residential and residential buildings are up 4.8 per cent and 3.6 per cent, respectively, year-over-year.
INCREASE IN NON-RESIDENTIAL BUILDING CONSTRUCTION COSTS QUARTER INCREASE 2017 Q1 0.9 Q2 0.8 Q3 0.6 Q4 0.8 2018 Q1 0.9 Q2 1.4
T
Q3 1.6 Q4 1.1 2019 Q1 0.8
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THE TOP 40
PG. 27
STAYING ON TOP PG. 30
TOP FIVE UNDER 50 PG. 37
LISTINGS
PG. 38
HATS OFF TO
CANADA’S TOP CONTRACTORS
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There are many reasons why more than 25% of all contractors and construction companies in Canada choose Aon to be their broker. Learn what sets us apart today. Maximizing Performance. Managing Volatility. aon.ca
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TOP CONTRACTORS
WELCOME LETTER
A
on is proud to once again sponsor On-Site’s Top Contractors issue. We are even more proud to work with many of Canada’s Top Contractors as they lead the way nationally and globally. Having worked with Canada’s construction leaders for many decades, we’ve seen an enormous amount of change, growth, and innovation. While construction technologies develop at a rapid pace, Aon strives to stay ahead of the curve. Through the power of data and analytics, we have insight into the challenges and new ideas changing the industry. Risk is an inherent part of construction, so we constantly assess new technology solutions that help the industry manage risk and adapt to the massive change that is emerging in the industry. We’ve invested in developing Canadian-specific expertise, while also having access to global ideas and perspectives. Aon also recognizes that local expertise is vital, and our coast to coast network means we can provide support wherever you are. While technology is important and exciting, people are what make innovation possible. We value the opportunity to work with the passionate individuals who strive to build better. Your passion and dedication inspire us every day. Congratulations to Canada’s 2019 Top Contractors. It’s an honour to partner with you as you change the world. Sincerely, Doug Correa National Practice Leader, Construction Executive Vice President, Global Specialties
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SHARING YOUR VISION. BUILDING SUCCESS. PCL Agile Off-Site Facility, Toronto, ON
We are more than builders. We are construction partners who are passionate about what we do and about our partners’ needs. PCL is Canada’s Top Contractor and proud to lead the way with innovative building strategies and delivery. Watch us build at PCL.com
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TOP CONTRACTORS There’s no two ways about it, 2018 was a good year for Canadian construction. Despite some steep challenges in the form of tariffs on steel and aluminum, continued weakness in the energy sector and softening investment in institutional building, Canada’s Top Contractors dug in and delivered, with many posting record years and forecasting more of the same for 2019. Higher revenues for our Top 40 was the story of 2018, with growth returning nearly across the board. Among the long list of other insights from this year’s report is the appeal of the federal government’s new tax incentive for equipment purchases. While not all contractors own their dozers and excavators, of those that shared their procurement plans, 46 per cent say they intend to take advantage of the incentive to replace or supplement anywhere from three to 50 per cent of their fleets. I want to thank all the contactors that set aside the time to fill out our annual survey and be a part of this valuable industry research. As always, without your contributions, we would not be able to piece together this important issue that highlights how much Canada’s builders bring to the overall economy and showcases the ways construction continues to innovate and evolve.
TOP 40 Rank
Company
2018 Revenue
1
SNC-Lavalin Group Inc.
$9,819,300,000
2
PCL Constructors Inc.
$9,000,000,000
3
EllisDon Corp.
$3,887,756,033
4
Aecon Group Inc.
$3,266,300,000
5
Graham Group Ltd.
$2,216,995,000
6
Pomerleau Inc.
$1,935,000,000
7
Ledcor Group of Companies
$1,899,100,000
8
Kiewit Canada Group Inc.
$1,445,586,000
9
Bird Construction Inc.
$1,381,800,000
10
EBC Inc.
$1,100,000,000
11
Stuart Olson Inc.
$966,408,030
12
Flynn Group of Companies
$915,894,000
13 Broccolini
$575,000,000
14
Clark Builders
$573,148,282
15
Turner Construction Co.
$551,814,530
16
Axiom Builders Inc.
$550,000,000
17
Reliance Construction Group
$550,000,000
18
The State Group Inc.
$505,000,000
19
Taggart Group of Companies
$455,000,000
DAVID KENNEDY EDITOR
20
North American Construction Group
$410,061,000
21
Chandos Construction
$400,000,000
TOP FIVE COMPANIES
22
Pennecon Ltd.
$369,268,135
23
ConDrain Group
$353,000,000
24
Dawson Wallace Construction
$300,000,000
25
Govan Brown & Associates Ltd.
$260,000,000
26
FWS Group of Companies
$240,400,000
27
Delnor Construction Ltd.
$204,700,000
28
Claridge Homes
$200,000,000
29
Buttcon Ltd.
$182,000,000
30
Wales Mclelland Construction
$170,000,000
31
Avondale Construction Ltd.
$160,000,000
32
Metro-Can Construction Ltd.
$150,000,000
33
Walsh Canada
$150,000,000
34
Bockstael Construction Ltd.
$146,535,000
35
Keller Foundations Ltd.
$141,100,000
36
M Builds Construction
$127,000,000
37
Fillmore Construction
$125,000,000
38
Acadian Construction
$120,000,000
39
Leeswood Construction
$110,000,000
40
Scott Construction Group
$107,000,000
UNDER 50 EMPLOYEES Rank
1
2
Rosati Group
Certus Construction Co.
Revenue
$51,480,503
$47,800,000
3
KF Construction Inc.
$46,032,778
4
CGI Constructors
$40,853,365
5
O.N.Site Construction Inc.
$22,400,000
BASED ON WRITTEN RESPONSES TO RESEARCH CONDUCTED BY ON-SITE, AS WELL AS ON PUBLICLY-AVAILABLE DATA. SOME CONTRACTORS CHOSE NOT TO PARTICIPATE IN THIS RESEARCH.
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KEY TAKEAWAYS
A STRONG 2018
AND POSITIVE OUTLOOK FOR THE YEAR AHEAD Contractors have had few complaints about the Canadian construction environment in the last year and their strong revenue figures for 2018 show why. Builders are also overwhelmingly optimistic for 2019, with 74 per cent forecasting growth and 12 per cent anticipating no change. Just 14 per cent of the contractors we polled are expecting lower revenues.
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TOP CONTRACTORS
BY THE NUMBERS:
On-Site’s Top 40 booked more than
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STAYING
ON TOP Attracting and retaining talent has never been tougher – or more integral to success BY SAUL CHERNOS
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C
onstruction activity continues to fire on all cylinders in Canadian urban centres and is faring well in most other areas of the country. Canada’s Top Contractors are hitting fresh heights as well, but the success masks a steep challenge for the industry that’s beginning to claw its way to the surface. The skilled labour issue, which first emerged in human resources departments, has become all too familiar for builders of all sizes across the country. BuildForce Canada, a national industry-run labour market data provider, has been tracking the magnitude of the problem. It expects more than 261,000 workers to reach retirement age over the next decade. That’s nearly one quarter of the 2019 labour force. In its sobering, most recent report, the research organization says the industry will need to recruit, train and retain some 300,000 new workers by 2028, which may become “increasingly difficult” as population growth slows and less youth are available to enter the labour force over the long term. BuildForce says the sector must continue to watch changing economic conditions, the potential for new growth, expected retirements and the availability of new entrants in order to stay ahead of the trend and maintain a long-term, sustainable, skilled labour force. To ensure they can continue to recruit and retain top talent, Canadian construction companies are upping the employee value proposition. Making changes to help workers establish a better work-life balance, recognizing and rewarding talent and fast-tracking career advancement are just a few examples. They’re even offering perhaps the ultimate incentive – a stake in company ownership. As the 2019 construction season gets underway, we’ve asked some leading players what the tight labour pool means for our industry and how building firms can navigate an employees’ market.
BEYOND THE PAY STUB As vice-president of the Residential Construction Council of Ontario (RESCON), Andrew Pariser is keenly aware of the tightening labour pool. “It’s probably going to become a bigger issue because demographically we’re on the wrong end of the age curve,” he says, pointing to his organization’s recent survey of tradespeople in Ontario’s residential and infrastructure sectors. “Everybody likes the good money that’s in construction but it’s not enough on its own. Going forward, it’s going to be how people are treated on-site. It’s the working conditions, the non-monetary compensation.” The perception of construction as a less than desirable way to earn a living is a key challenge. “There’s a lot of myths,” Pariser says, describing a contradiction between workers who report their jobs as fulfilling and enjoyable and outside perceptions of the trades as unpleasant and physically taxing. “I think there’s a stigma,” he adds. “People say the job is dirty, that they don’t want to be a bricklayer, that concrete and drain work is very tough. But when we interviewed the people who actually do these jobs we found out they actually have a very high level of job satisfaction.” Surveyed workers acknowledged a positive work/life balance, opportunities for job advancement and finding jobs physically and intellectually stimulating. Job seekers and the people who influence them – parents, teachers and guidance counsellors – need a fuller picture of the vast array of construction and construction-related jobs. “It’s really a communication gap,” Pariser says. “30 years ago your success in construction was largely based on the strength of your back. Now construction is much more advanced. There’s been lots of innovation. If you want a job that uses technology you could say you want a construction job. There’s still a physical capacity to it, which people like a lot more than just
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sitting behind a desk, but it’s meaningful work. Once people get into the trades and understand what a trades job is they’re actually happier than the average Canadian to do it.” Mark Frezell, vice-president of human resources with Calgary-based Graham Construction, says it can be challenging to attract workers both for physical jobs and administrative roles such as project estimators, contract managers and senior managers. “We need to attract people, we need to retain them, and we need to develop them in order to get them into those senior roles,” Frezell says. One core strategy is to reach out to students in high school and even in elementary school to promote construction as a viable career path for anyone wanting to earn a good living in a positive environment. “We have to start socializing the idea that this is a great place to work, that this is a good industry, and then we have to start incenting people to come and look at us,”
“We need to attract people, we need to retain them, and we need to develop them in order to get them into those senior roles.” – Mark Frezell, Graham
Frezell says. At the same time, a strong value proposition needs to be at the core of any employee attraction and retention strategy. “The question we’ve always asked ourselves,” Frezell adds, “is why would you come to Graham? What is it we have?” He responds with the story of a 92-year-old company that started as a family business and maintains a family feel. “We’re a respectful culture where we focus on collaboration and accountability. We’re strong on our values and we try and sell that to potential employees.” Financial compensation, clear objectives and performance-based bonuses are part of the
package, as are structured mentorships through a program called Future Builders and a suite of certified courses under the Builders Framework rubric where participants can earn Gold Seal and Project Management International accreditation. “We’ll even cover your exam costs,” Frezell says. A key selling point, as Frezell sees it, is Graham’s employee-owned structure. “It changes the culture. Everybody’s got skin in the game. Not only can you have a market competitive salary and bonus, you can start to use your employment as an investment income. That’s pretty attractive, so we make a big deal about it.”
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TOP CONTRACTORS
A NEW GENERATION Companies pursuing aggressive growth face a stiff challenge as well. When they expand to a new geography or vertical market, new hires are often essential. Chandos Construction is employee-owned and until a recent national expansion, operated predominantly in Alberta. After opening a new Vancouver office two years ago and a Toronto office earlier this year, 50 per cent of the firm’s backlog is now in Ontario or the Vancouver area – though it has maintained market share in the Prairies as well. “We want to provide opportunity for our people. That’s why our goal is to double the size of the company in seven to 10 years while keeping top and bottom lines connected,” President Tim Coldwell says. “That has us growing by roughly 500 people over that time period.” While keen to draw mid-career talent from competitors, Chandos has placed a priority on co-op students and freshly-minted graduates. “We’re investing in the future because in five to seven years those graduates are able to run projects for us as project managers and superintendents,” Coldwell says. Chandos taps into alternative sources of labour, partnering with social enterprises to find ways to steer at-risk youth towards the trades, while efforts to attract women, Indigenous people and visible minorities emphasize the benefits of attractive, well-paying jobs with a stake in earnings.
“We want to provide opportunity for our people. That’s why our goal is to double the size of the company in seven to 10 years while keeping top and bottom lines connected.” – Tim Coldwell, Chandos
“Someone who earns a salary with us, when fully vested with equity options could double that salary in a good year,” Coldwell says. “That sort of opportunity drives long term thinking and exceptional customer service. That’s what we want in the organization.” At EllisDon, Paul Trudel is senior vice-president of people and culture, a title that reflects the view that the traditional term “human resources” is more about policies and procedures than about people. “It’s an important delineation,” Trudel says. “Culture is our driving force for pretty much everything.” So, while EllisDon also offers employee ownership, Trudel says it isn’t enough on its own. “It’s important because you’re vested into the success of the organization, and I think at all levels you want to feel like you’re a part of something. But if you’re a shareholder and you don’t like the people you work with or you don’t think you have a say, then it’s just another program that looks shiny and glossy on the outside but probably doesn’t mean much of anything. You need both.”
EllisDon has training and mentorship offerings, including access to BetterUp, an online coaching portal that takes a ‘whole person’ approach to leadership development. It also uses Together Mentoring software, which matches employees who share common goals and values. “It isn’t just a senior person helping a junior person, it could be a junior person helping a senior person with things they don’t know,” Trudel says. With Harvard ManageMentor, an online tool produced by Harvard Business School, EllisDon employees can gain leadership skills individually on their own initiative and can take that into a group setting with robust lunchtime-style face-toface conversations. “We think if we create the right culture and the right environment people will want to stay here and thrive with us,” Trudel says. Still, employees sometimes leave even in the best of circumstances. Through Retainify, a company specializing in employee feedback, EllisDon surveys employees on a regular basis – with as much confidentiality as the employee wants – to find out what’s working and what isn’t. The process begins with new hires, but EllisDon also uses Retainify to help prepare for exit interviews. “If someone chooses to leave us one day, we want to thank them for everything they provided,” Trudel says. “We realize the construction industry is a small industry. People will move on, but they might refer a friend or colleague our way, so you never know who’s going to be on the other side of the table. Treating people with respect is important.”
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TOP CONTRACTORS
BUILDING UP Windsor, Ont. contractor Rosati Group edges its way to the top BY JILLIAN MORGAN
S
taying true to its roots in southwestern Ontario, Rosati Group has grown to new heights. Carving out its legacy since 1969, the family-owned contractor has secured the top spot in On-Site’s Top Five Under 50 category for the third time in six years, taking home $51.4 million in revenue last year, up from $46 million in 2017. The design-build contractor, with its flag firmly planted in Windsor, Ont., is co-owned by brothers Tony and Nick Rosati, sons of founders Vince and Olivia Rosati.
Currently celebrating its 50th anniversary, Tony Rosati credits the company’s success to the community in which it builds. “We continue to exceed our customers’ expectations and our core strength is repeat business from our existing customers,” he says. “We don’t look to travel all over Ontario. We want to stay local and just try to be the best in this area.” Specializing in industrial and commercial projects, Rosati Group offers in-house land development, design engineering, legal, leasing and property management Construction of an LCBO store in LaSalle, Ont. marked another achievement for Rosati Group. The builder stays local and works to be the best in the area.
The Centerline Industrial Campus, also in LaSalle, stretches 20-acres. Rosati completed a fourth 89,000 sq. ft. manufacturing building on the site in 2018.
services, along with its field crew and construction team. In the last year, the contractor broke ground on a number of industrial and commercial builds across Windsor-Essex County, including a $5.7 million facility for manufacturing firm Reko International Group Inc. Spanning 48,600 sq. ft., the Lakeshore development is just one major project the contractor capped off in 2018. A $6 million, 47,000 square foot IAT Global facility in Chatham and the 89,000 sq. ft. Centerline Industrial Campus in LaSalle are two others. “The driving force has been more on the industrial market side,” Rosati says. “The majority of the projects in 2018 have been brand new manufacturing facilities as well as additions to existing manufacturing facilities.” The company also saw growth of its pre-engineered solutions for industrial, commercial and institutional buildings in the last year. It also completed more projects in the agricultural sector. “We’ve also expanded our abilities in the retail and restaurant construction,” Rosati adds. “We’ve built and renovated quite a few restaurants in the last couple of years. That’s another area of growth.” In 2018, Rosati Group constructed a 3,580 sq. ft. sports bar in LaSalle and a 1,700 sq. ft. café in Amherstburg. It also polished off a 1,864 sq. ft. restaurant renovation, among other projects. “We’ve built over 15 million sq. ft. since we’ve started,” Rosati says. “That’s an accomplishment.”
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TOP CONTRACTORS
TOP FIVE UNDER 50 EMPLOYEES 1
2
3
4
5
Rosati Group
JR Certus Construction Co.
KF Construction Inc.
CGI Constructors
O.N.Site Construction Inc.
Headquarters: Windsor, Ont.
Headquarters: Vaughan, Ont.
Headquarters: Laval, Que.
Headquarters: Mississauga, Ont.
Headquarters: Oakville, Ont.
2018 Revenue: $51,480,503
2018 Revenue: $47,800,000
2018 Revenue: $46,032,778
2018 Revenue: $40,853,365
2018 Revenue: $22,400,000
Full-Time Staff: 43
Full-Time Staff: 35
Full-Time Staff: 36
Full-Time Staff: 45
Full-Time Staff: 25
Sectors: General contracting; commercial, industrial, institutional and multi-unit residential buildings; property management
Sectors: General contracting; commercial, industrial, institutional and multi-unit residential buildings; construction management
Sectors: General contracting; commercial, industrial, institutional and multi-unit residential buildings;
Sectors: General contracting; commercial, industrial and institutional buildings; construction management
Sectors: General contracting; commercial, industrial, institutional and residential buildings; construction management; architectural services
Website: www.rosatigroup.com
Website: www.jrcertus.com
Website: www.kfconstructioninc.com/ fr/Accueil
Website: www.cgigc.com
Website: www.onsiteconstruction.ca
The Haebler Group 60th Anniversary Congratulations to Roland Haebler and his team on their 60th anniversary Compliments of James & Julie King on-sitemag.com / 37 OS_HAEBLER1-2HAD_JUNE_LAZ A.indd 1
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LISTINGS
A Acadian Construction 671 Malenfant Blvd. Dieppe, NB E1A 5T8 T: 506-857-1909 www.acadianconstruction.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Aecon Group Inc. 20 Carlson Court Toronto, ON M9W 7K6 T: 416-297-2600 www.aecon.com A, B, D, E, F, G, H, J, K, M, N, Q, R, S, T, W, X, Y, Z All-West Crane & Rigging Ltd. 1891 Campbell Cres. Quesnel, BC V2J 5Z8 T: 877-203-0069 www.allwestcrane.com B, C, E, N, O, R, S, U, V Amherst Group 105 Nantucket Blvd. Toronto, ON M1P 2N5 T: 416-752-2431 www.amherstgroup.ca B, C, D, J, N, O, T, U, V W. X. Z Avondale Construction Ltd. 49 Hobson Lake Drive Halifax, NS B3S 0E4 T: 902 876-1821 F: 902 876-1822 www.avondaleconstruction.com B, C, D, F, H, M, N, O, U, V
B Berkim Construction Inc. 120 Willowdale Ave. Toronto, ON M2N 4Y2 T: 905-262-5492 www.berkim.com C, F, G, H, M, N, O, V, U Bird Construction 5700 Explorer Drive Mississauga, ON L4W 0C6 T: 905-602-4122 F: 905-602-1516 www.bird.ca A, C, E, F, H, M, N, O, R, S, T, V, X, Y, Z
ACTIVITIES Blue Star Construction Corp. 35-411 Four Valley Drive Vaughan, ON L4K 5Y8 T: 905-760-0080 www.bluestarconstruction.ca G, M, K Bockstael Construction Ltd. 200-100 Paquin Road Winnipeg, MB R2J 3V4 T: 204-997-4730 www.bockstael.com C, F, H, J, M, N, O, V, Y Broccolini 16766 Trans-Canada Highway Kirkland, QC H9H 4V3 T: 514-737-0076 F: 514-737-2728 www.broccolini.com C, N, V Buttcon Ltd. 401-8000 Jane Street, Tower B Concord, ON L4K 5B8 T: 905-907-4242 F: 905-907-8096 www.buttcon.com A, C, E, F, H, M, N, O, V, Y
C CGI Constructors 895 Meyerside Drive Mississauga, ON L5T 1R8 T: 905-564-6565 www.cgigc.com C, H, M, N, O Chandos Construction 9604-20 Avenue NW Edmonton, AB T6N 1G1 T: 780-436-8617 www.chandos.com C, F, G, H, M, N, O, V Claridge Homes 210 Gladstone Ave. Ottawa, ON K2P 0Y6 T: 613-233-6030 www.claridgehomes.com U, V Clark Builders 4703 52 Avenue Edmonton AB T6B 3R6 T: 780.395.3311 www.clarkbuilders.com C, E, F, H, J, M, N, O, T, V
The following letter codes are used to indicate areas of activity for the contractors in the listings on these pages. A Aggregates B Bridges C Commercial Buildings D Communication Engineering E Concrete F Contract Management G Demolition H Design/Build J Electric Power/Utilities K Environmental Remediation M General Contracting N Industrial Buldings O Institutional Buildings Q Marine-Related R Mining-Related S Oil and Gas-Related T Other Transportation Construction U Residential Houses V Residential Multi-Unit W Roadbuilding X Sewer Y Structural Steel Z Waterworks
ConDrain Group, The 30 Floral Parkway Concord, ON L4K 4R1 T: 905-669-5400 F: 905-669-5040 www.condrain.com A, B, C, M, N, O, W, X, Z Cress Contracting 16 Pic River Road Heron Bay, ON P0T 1R0 T: 807-229-0832 www.cresscontracting.ca B, C, G, J, K, M, N, O, Q, R, T, U, W, X
D Dalren Ltd. 8791 Dale Road Cobourg, ON K9A 4J9 T: 905-377-1080 www.dalren.ca B, C, D, F, G, H, J, K, M, N, O, Q, U, V, Dawson Wallace Construction Ltd. 4611 Eleniak Rd. Edmonton, AB T6B 2N1 T: 780-466-8700 F: 780-466-9614 www.dawsonwallace.com C, H, F, M, N
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TOP CONTRACTORS Delnor Construction Ltd. 3609-74 Ave. Edmonton, AB T6B 2T7 T: 780-469-1304 F: 780-466-0798 www.delnor.ca C, H, M, N, O, U
Flynn Group of Companies 6435 Northwest Drive Mississauga, ON L4V 1K2 T: 905-671-3971 F: 905-671-3973 www.flynncompanies.com C, J, N, O, S
Dineen Construction (2017) Corp. 70 Disco Road, Suite 300 Toronto, ON M9W 1L9 T: 416-675-7676 www.dineen.com C, F, H, M, N, O, V
Fraser River Pile & Dredge 1830 River Drive New Westminster, BC V3M 2A8 T: 604-522-7971 www.frpd.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z
E Earth Max Construction Inc. 9154 E Road 73N Stony Mountain, MB R0C 3A0 T: 204-344-5760 F: 204-480-1683 www.earthmax.ca F, M, W, X, Z
G
FWS Group of Companies 275 Commerce Drive Winnipeg, MB R3J 3N7 T: 204-487-2500 www.fwsgroup.com A, C, E, F, H, M, N, O, R, S, V, Y
GenMec ACL Inc. 7301-50 Avenue Bonnyville, AB T9N 2P3 T: 780-826-4450 www.genmecacl.com C, E, N, O Govan Brown & Associates Ltd. 108 Vine Avenue Toronto, ON M6P 1V7 T: 416-703-5100 F: 413-703-5200 www.govanbrown.com C, H, M, N Graham Group Ltd. 10840 27 Street SE Calgary, AB T2Z 3R6 T: 403-570-5231 F: 403-570-5030 www.grahambuilds.com B, C, D, F, G, H, J, K, M, N, O, Q, R, S, T, V, W, X, Z
EBC Inc. 1095 Valets Street L’Ancienne-Lorette, QC G2E 3M3 T: 418-872-0600 F: 418-872-8177 www.ebcinc.com B, C, F, H, J, M, N, O, Q, R, T, V, W, Z EllisDon 1000-1004 Middlegate Rd. Mississauga, ON L4Y 1M4 T: 905-896-8900 www.ellisdon.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Evolve Builders Group Inc. 60 Manitoba Street Guelph, ON N1E 3B9 T: 519-265-6546 F: 519-265-6576 www.evolvebuilders.ca U, F, H
F
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TOP CONTRACTORS
LISTINGS
Grascan Group of Companies 61 Steinway Blvd. Toronto, ON M9W 6H6 T: 416-644-8858 F: 416 644 8864 www.grascan.com B, G, H, M, W Grayveld Builders Corp. 42 Campbell Ave. Oro-Medonte, ON L0L 1T0 T: 705-487-1659 www.grayveld.com C, Y
J JR Certus Construction Co. Ltd. 3-81 Zenway Blvd. Vaughan, ON L4H 0S5 T: 647-494-0150 F: 647-494-0155 www.jrcertus.com C, F, M, N, O, V
K Keller Foundations 254 Main Street Unit 1 Acton, ON L7J 1W9 T: 519-853-3216 www.kellerfoundations.ca B, C, D, J, K, N, O, R, S, T, V, W, X, Z KF Construction Inc. 201-1410 Rue de Jaffa Laval, QC H7P 4K9 T: 450-681-8338 F: 450-681-7612 www.kfconstructioninc.com C, F, M, N, O, V Kiewit Canada Group Inc. 200-10333 Southport Rd. Calgary, AB T2W 3X6 T: 403-693-8701 F: 403-267-2339 www.kiewit.ca A, B, D, E, H, J, K, M, N, Q, R, S, T, W, X, Y, Z
L Ledcor Group of Companies 1200-1067 West Cordova Street Vancouver, BC V6C 1C7 T: 604-681-7500 F: 604-681-9700 www.ledcor.com C, D, K, M, N, O, R, S
Leeswood Construction 7200 West Credit Ave. Toronto, ON L5N 5N1 T: 416-309-4482 F: 416-309-4483 www.leeswood.ca C, H, M, N, V
M M Builds (formerly Manshield Construction) 955 Cobalt Cr. Thunder Bay, ON P7K 1B9 T: 807-346-1650 F: 807-346-1654 www.manshield.com C, M, N, O, V Metro-Can Construction Ltd. 520-10470-152nd Street Surrey, BC V3R 0Y3 T: 604-583-1174 F: 604-583-3321 www.metrocan.com C, N, O, V Morrison Homes 3552-78 Ave. Edmonton, AB T6B 2X9 T: 403.279.7600 www.morrisonhomes.ca U, V
N Newway Group 3750 First Ave. Burnaby, BC V5C 3V9 T: 604-299-3709 F: 604-299-6209 www.newwayforming.com C, E, F, O, V, X North American Construction Group 26550 Acheson Road Acheson, AB T7X 6B2 T: 780-969-3478 www.nacg.ca F, G, H, J, K, M, R, S, W North Construction 378 Esplanade East North Vancouver, BC V7L 1A4 T: 604-904-2300 www.north-construction.com B, E, F, G, H, J, K, M, Q, U, V, W, X, Z
O O.N.Site Construction Inc. 23-2861 Sherwood Heights Drive, Oakville, ON L6J 7K1 T: 416-689-8851 www.onsiteconstruction.ca C, F, G, H, M, N, O Owen King Ltd. 87 Brant Sideroad 15 Walkerton, ON N0G 2V0 T: 519-881-1771 F: 519-881-1585 www.owenkinglimited.com B, M, W
P Paragon Industries 1042 Oxford Street West Winnipeg, MB R2C 2Z2 T: 204-224-3238 www.paragonindustries.ca G Parkwest Projects Ltd. 1077 Oxford Street West Winnipeg, MB R2C 2Z2 T: 204-654-9314 www.parkwestprojects.ca A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z PCL Constructors Inc. 9915-56 Avenue Edmonton, AB T6E 5L7 T: 780-733-5107 www.PCL.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Pennecon 1309 Topsail Road St. John’s, NL A1B 3N4 T: 709-782-3404 F: 709-782-0129 www.pennecon.com B, E, F, J, M, N, Q, R, S, W, X, Y, Z Pomerleau Inc. 521 6e Avenue Saint-Georges, QC G5Y 0H1 T: 418-228-6688 F: 418-228-3524 www.pomerleau.ca B, C, D, F, H, M, J, N, O,
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TOP CONTRACTORS
LISTINGS
Pompage Industriel Inc. 1794 Rue Bresse Quebec City, QC G2G 2P2 T: 418-871-0001 www.pompage-industriel.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Priestly Demolition 3200 Lloydtown Aurora Rd. King, ON L7B 0G3 T: 905-841-3735 F: 905-841-6282 www.priestly.ca G
R RAM Construction Inc. 101-8369 River Way Delta, BC V4G 1G2 T: 604-940-5265 www.ramconst.com C, E, H, M RCS Construction 26 Topsail Court Halifax, NS B3J 3X7 T: 902-468-6757 www.rcsinc.ca C, M, N, O, V Reliance Construction of Canada Ltd. 3285 J.B. Deschamps Lachine, QC H8T 3E4 T: 514-631-7999 www.relianceconstruction.com C, F, H, M, N, V Rosati Group 6555 Malden Rd. Windsor, ON N9H 1T5 T: 519-734-6511 F: 519-734-7872 www.rosatigroup.com C, F, H, M, N, O, V
S Scott Construction Group 1750 - 3777 Kingsway Burnaby, BC V6B 6E4 T: 604-874-8228 www.scottconstructiongroup.com C, F, H, M, O, V
Shurtleff Interiors & Building Services 8262 County Road 2 Napanee, ON K7R 3M3 T: 613-354-4149 www.shurtleffinteriors.com C, E, H, M, V, U
TKI Construction 150 Froelich Road Kelowna, BC V1X 3M8 T: 250-491-1130 www.tkiconstruction.ca C, E, M, N
Skyway Canada Ltd. 170 Claireville Drive Toronto, ON M9W 5Y3 T: 416-744-6000 F: 416-744-6001 www.skycan.ca A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z
Turner Construction Company 1601-700 West Pender Street Vancouver, BC V6C 1G8 T: 778-834-5936 www.turnerconstruction.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z
SNC- Lavalin Inc. 455 René-Lévesque Blvd. West Montreal, QC H2Z 1Z3 T: 514-393-1000 F: 514-866-0795 www.snclavalin.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Snyder Construction 920 Brawley Rd W Ashburn, ON L0B 1A0 T: 905-655-5000 F: 905-655-5594 www.snyderconstruction.ca C, F, G, H, M, N, O, U, V, Stan Bates Construction 605 Mcenzie Ave. Atikokan, ON P0T 1C0 T: 807-597-4574 M State Group Inc., The 3206 Orlando Drive Mississauga, ON L4V 1R5 T: 905-672-2772 F: 905-672-1919 www.stategroup.com F, J, N, O, S Stuart Olson Inc. 600-4820 Richard Road SW Calgary, AB T3E 6L1 T: 403-520-1594 F: 403-685-7777 www.stuartolson.com F, J, M, N, R, S
T Taggart Group of Companies 3187 Albion Road Ottawa, ON K1V 8Y3 T: 613-521-3000 www.taggartconstruction.com C, F, M, U, V, X
U Urban One Builders 409-611 Alexander Street Vancouver, BC V6A 1E1 T: 604-873-5100 www.urbanonebuilders.com V
V VVI Construction 96 Cartier Street Revelstoke, BC V0E 2S0 T: 250-837-2919 F: 250-837-2919 www.vviconstruction.com C, E, F, G, H, K, M, N, O, T, U, V, W, X, Y, Z
W Wales McLelland Construction 6211 Fraserwood Place Richmond, BC V6W 1J2 T: 604-638-1212 www.walesmclelland.com A, C, F, G, H, M, N, O, Y Walsh Canada 302-36 York Mills Rd. Toronto, ON M2P 2E9 T: 416-849-9000 F: 416-849-9100 www.walshgroup.com C, H, M, N, O, V Weathertech Restoration Services Inc. 1054 Shaw Road Dorchester, ON N0L 1G4 T: 519-268-1173 F: 519-268-8975 www.wrsi.ca B, E, J
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Future-proof your excavator system
Get the X-53x (full 3D) now or go with the X-52x (2D) excavating system and easily upgrade later. Your system can grow as your needs and demands change or when new features and capabilities like an automatic excavator become available. No matter which system you start with, you’re sure to get more out of all your excavating projects, now – and into the future. The Intersection of Infrastructure and Technology™
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PLAYING THE
LONG GAME Machine control developers cautiously build to full autonomy  BY JILLIAN MORGAN
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MACHINE CONTROL
PHOTO: TRIMBLE
PHOTO: TRIMBLE
D
riverless machines won’t be moving dirt on job machines on a construction site one day, but there’s going sites anytime soon. to be steps along the way,” Crim says. “If you take a look Before an armoury of fully autonomous equipat the car industry and what they’ve done in autonomy, it ment can work alongside crews, machine control didn’t start off with the first autonomous car 10 years ago. developers at the helm admit there will be a few hurdles There’s things like cruise control, anti-lock brakes, all those to jump. Though it may be tempting to take the leap, the steps along the way that help take the strain off an operaunpredictability of autonomous equipment on high-risk tor – these are the things that we’re looking at in machine construction sites has prompted key players in the space to control. Are there ways that we can actually steer the take pause. machines? Are there ways that we can actually help guide “Everybody is exploring autonomy, in general, and so the operator to do the work that they’re doing for the day are we,” Kris Maas, director of Machine Control Product without having them to think about it?” Management at Topcon PosiFor Maas, self-learning tioning Systems Inc., says. “Do could serve as a step between we think the market is ready automation and full autonomy, “Certainly, the technology for it? I don’t think so… The enabling the autonomous safety aspect, for me, is crucial equipment to interact more exists to do autonomous before you go to full autonomy. safely alongside workers and Every job site is unique and other machines. machines, but construction extremely complex, unlike typi“It’s easy to get machine cal manufacturing processes or control autonomous. We could sites are too uncontrolled at agricultural applications that do it today,” he says. “How are often repetitive, and occur do we make our machines this point to run machines in a more controlled environself-learning so they underautonomously. There’s too ment.” stand what’s going on and He isn’t alone. Kyle Birch, they can interact with what’s many men on the ground Machine Control manager for happening on a job site? That’s Canada at Leica Geosystems, something we’re investing a that can be in harm’s way.” says it’s a question of when lot in.” autonomy “makes sense” for In the last five years, – Kyle Birch, Leica the construction industry. machine control automation “Certainly, the technolhas become more “realized” ogy exists to do autonomous on job sites, opening the machines, but construction industry up to the technology’s sites are too uncontrolled at this point to run machines potential for operators and equipment, Crim says. autonomously,” he says. “There’s too many men on the “Automation plays a big role in our long term roadmap,” ground that can be in harm’s way.” he adds. “Machine control has just highlighted the fact that Still, developers are testing the waters. Eric Crim, prodyou could automate some of these tools and processes on a uct manager of Machine Control Systems at Trimble’s Civil job site. But now its’ actually taking a look at what can we Engineering and Construction Division, says the company do further than just machine control.” has set out its roadmap to autonomy. Similarly, at Topcon, Birch echoes Crim, adding that the industry should testing is underway on autonomous machines – and the expect to see “more and more automation” in the future. technology is ready to go to market, though Maas says it Along with enhanced productivity and accuracy, leveraging won’t be unveiled in the near future. automation could alleviate the skills gap on job sites. “I definitely see that there may be autonomous “You hear the complaint that they can’t find the skilled on-sitemag.com / 45
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MACHINE CONTROL operators that they had in the past. It’s hard for contractors to keep staff,” he adds. “Nothing can cover up for an incompetent operator but you can make a good operator great with automatics.” In the last few years, the release of automatic excavator solutions has marked a major advancement in machine control, offering added productivity and func-
tionality to the key piece of construction equipment. “Now that the excavators automated, that means everything is fully automated,” Birch says. Developers are still eyeing a few other key trends, such as data sharing across construction sites, before jumping ahead to full autonomy. “The whole autonomy thing, its defi-
nitely a buzzword. Its one of those things everybody is interested in,” Crim says. “Everybody realizes it’s going to be hard to take the person out of the machine, for safety reasons. But we’re pretty excited about the steps we have laid out internally on how we’re going to get there. And I think the contractors are pretty excited about this.”
LEICA Taking its machine control portfolio a step further, Leica unveiled the MC1 software for excavators and the latest iteration of its ConX web interface in April. ConX, released just two years ago, facilitates data sharing across construction sites, “bringing operators, foreman and project owners together in one digital platform,” the company stated in a release. “Almost all our customers are running ConX,” Birch says. “You’re able to push and pull data from the machines in real time, get as-built data out of machines, change designs – that’s been a big thing.” Now, the tool enables creation of a 3D environment from data aggregation. It uses sensor merging to provide data with automated analyses and visualisation of aspects of a project, such as cut and fill volumes. “Even small contractors can now get their data provider set up to access the machines, so it can make the transfer to the machines seamless,” Birch says. “It’s been huge for us for remote support… because, through ConX, things can either be diagnosed and solved remotely or they can be diagnosed and when the technician gets out to the field, he knows exactly what he has to do.” Previously offered in the company’s paving portfolio, the MC1 software for excavators enables automatic detection of construction tools connected to the machine, designed to prevent operators using improper buckets. “When you’re changing buckets with an excavator, the system knows it changed the buckets, so it will adjust your measurements accordingly,” Birch adds. “Previously, the operator would have to go in and manually select a new bucket. Now we’ve automated that function.”
Comparing the design model to the actual position of the machine’s cutting edge, such as the bucket or blade edge, Leica’s MC1 software assists the operator to position the machine to achieve the planned design. PHOTO: LEICA GEOSYSTEMS
Leica’s ConX cloud-based collaboration tool offers the ability to manage, monitor and share construction and survey data in real time. PHOTO: LEICA GEOSYSTEMS
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WHERE
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MACHINE CONTROL
TOPCON Topcon’s flagship 3D dozer machine control system, the 3D-MC Max, has undergone a few key upgrades. The mastless system, released in 2016 with support for six-way dozers, now offers support for the four-way pusher class of dozers. It also now includes blade wear management and an optional third IMU, which is designed to improve performance on steep inclines. “20 years ago, 3D automatic control was not even available,” Maas says. “If you look at how the market has grown and how machine control is being accepted as a productivity tool on the job site, it has tremendously changed. People are using machine control to their benefit and they understand the benefit.” Topcon has also unveiled an automatic edition of its 3D modular aftermarket solution for excavation: the X-53x. The system uses the same components of the original X-53 system with the addition of hydraulic, automated control. With fingertip operation, the automatic excavation solution is designed to provide automated depth control in order to reduce operator fatigue. “When you look at automation and autonomy, you have to be careful that you don’t go too fast because the market is not ready to accept technology as a given for them to implement on their machines or their process,” Maas says. “Now the market is ready for it. You see OEMs coming out with automatic excavators… that will improve the way you work with an excavator.”
The latest update to the IMU-based, mastless 3D-MC Max system was introduced in April. PHOTO: TOPCON POSITIONING SYSTEMS INC.
Users can upgrade to the X-53x automatic excavator solution from the 2D and 3D systems. PHOTO: TOPCON POSITIONING SYSTEMS INC.
TRIMBLE
Earthworks for Excavators Grade Control Platform allows excavators to operate semi-automatically. The operator controls the stick, while Earthworks controls the boom and bucket. PHOTO: TRIMBLE
Trimble took a major stride in 2017, making its Earthworks Grade Control platform available for excavators and dozers. “It was a rearchitecture of what we did with machine control,” Crim says. “With this change, we’ve actually broken out the intelligence of the system. We’ve created what we call an EC, or an electronic control unit, that we put inside the machine and we let the display to just be the graphics only.” By automating excavator operation, Earthworks aims to allow the operator to achieve grade consistently and accurately in less time. The variation for dozers mounts dual Global Navigation Satellite System (GNSS) receivers on top of the cab to eliminate masts and cables traditionally located on the blade. The change is designed to save contractors’ time and keep receivers safe. Now, Crim says the company is scoping out the next five to 10 years, setting a foundation through Earthworks. “The new system is pretty advanced… It has capabilities today that we might not be using but we may be using in the future,” he says. “It was a big overhaul for us. It wasn’t just taking the same old system and just changing the user interface. There was a lot of underlying engineering work that we did to make sure this could happen.”
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It’s not easy
GREEN BUILDING
GOING GREEN
For contractors, embracing the sustainable building ‘paradigm shift’ isn’t optional BY DAVID KENNEDY
W
ith exposed concrete on all sides and piping from mechanical systems overhead, a compact drilling rig bores slowly into the ground beneath the Arthur Meighen Building in Toronto. The rig takes about a day to drill a 13-centimetre (five-inch) borehole to its target depth of 150 metres (about 500 feet). Nearly four dozen of these small-di-
ameter holes will eventually extend deep underground from the basement of the 60-year-old federal government office tower just east of the busy Midtown intersection of Yonge Street and St. Clair Avenue. After the drilling wraps up, the finished product is a sealed hole with two pipes inside it. The lengthy pair of pipes circulate fluid and exchange energy with the earth to either warm or cool the 10-storey office
PHOTO: GOVERNMENT OF CANADA
A rendering of the renovated Arthur Meighen Building. The project will cut the building’s emissions by 80 per cent
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Colors: 4cp
Close Date: 05/22/2019
The world is tough. Be tougher.
Challenges come in a lot of different sizes and no truck takes them on better than the Western Star® 4700. It was created to help you tackle the toughest jobs and win. Whether as a tractor, or as a truck bodied up the way you need it, the 4700 gives you the edge. And in this world, we could all use a little edge. FIND YOURS AT WESTERNSTAR.COM
Western Star - A Daimler Group Brand WS/MC-A-587 Specifications are subject to change without notice. Western Star Truck Sales, Inc. is registered to ISO 9001:2008 and ISO 14001:2004. Copyright © 2019 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.
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GREEN BUILDING
Tougher just got better. The enhanced 4700 offers a number of new features to make getting a hard job done even easier.
BE LIGHTER In addition to its other lightweight options, the 4700 is now available with the Cummins X12, which is up to 600 pounds lighter than other medium-bore engines.
The drilling rig used for geothermal bore holes in the basement of the Arthur Meighen Building in Toronto
CHANGING TACK
05/22/2019
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focussing on building sustainability. And it isn’t just on retrofits that green construction methods and materials are becoming a priority. More and more, public and private owners are demanding designers shoot for ambitious green building targets, such as LEED (Leadership in Energy and Environmental Design) designations with both new builds and renovations. To continue winning work, contractors need embrace the trend and ensure they have the expertise to take advantage.
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A green design is one thing. Executing it is another. A typical construction firm that has years of experience with conventional structures won’t likely be in too far over its head when taking on a green build, but that doesn’t mean there isn’t a learning curve. “There’s going to be a lot of change in the next 10 years or so,” says Mark Hutchinson, vice-president of Green Building Programs with the Canada Green Building Council (CaGBC). “We’re all headed toward significantly more energy efficient designs… All the technologies related to delivering a more energy efficient building are things that the design community, and then the contractor, are going to have to get familiar with.” Hutchinson pointed to new developments in curtain and window wall
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building. The geothermal system is one part of a $277 million overhaul of the tower that prioritizes slashing the building’s carbon emissions. The project will essentially strip the structure to its steel and concrete skeleton, replacing all essential building systems, including the electrical, plumbing and ventilation. Along with many other upgrades, a high-efficiency building envelope, green roof and solar panels will modernize the look and improve the performance of the building’s exterior. Work got underway on the project last year and it’s scheduled to reach completion by 2022. Approximately 300 crew are working on the job under Toronto-based Urbacon, which is leading the project as the construction manager. The green retrofit is expected to reduce the building’s greenhouse gas emissions by up to 80 per cent, as well as save the government $500,000 a year on energy, according to Carla Qualtrough, the minister of Public Services and Procurement Canada. “This will make it one of the first federal carbon-neutral buildings and that’s a very important milestone,” she says, adding Ottawa will look to the project for inspiration as it takes on similar projects across the country. The Canadian government isn’t alone in
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Since LEED was introduced in 2005, more than 3,000 Canadian projects have been certified, including the Vancouver Conventional Centre with its prominent green roof
construction, the focus on making building envelopes airtight and new wood building materials that are beginning to take timber towers to new heights as a few examples of areas in which construction companies often need some assistance early on. Mechanical contractors taking on installations of new types of heat pumps and dedicated outdoor air systems likely face a particularly gruelling learning curve over the next decade. The momentum behind green building across the industry will force them to adapt on-the-go. Tulsi Regmi, a professor at the Angelo DelZotto School of Construction Management at George Brown College, sees the growing movement as a paradigm shift. “Many advances have been made in sustainability and the trend will continue to accelerate,” says Regmi, whose background is in civil engineering. “This means,
there will be newer and more innovative building materials, methods and construction technologies, requiring all contracting professionals to be knowledgeable about these new materials and methods. Because contractors are at the forefront of delivering green projects, they must be keen on learning.” Adopting lean construction practices, studying up on the LEED certification process and turning to off-site construction or modularization are all areas contractors should be looking at, he says. “Most importantly, contractors should be open to new ways of doing things,” Regmi adds. “This means cultural change, more education and training, [and a] more engaged workforce.”
GETTING ALIGNED Starting from square one on a project is
essential. Even more so than on typical jobs, if the architects, owners and build teams aren’t on the same page about the goals of a green construction project from the outset, it’s a recipe for disaster. “Green projects are best delivered by a procurement system in which contractors are brought into the projects early on,” Regmi says. “They will get involved in value engineering to identify the most suitable materials and methods.” While having a seat at the table is not always within a construction firm’s control, owners are beginning to understand the value of working with their contractors to identify problems early and take a collaborative approach. Meanwhile, with contractors bearing responsibility for ordering and installing materials, construction firms that don’t already have experience with the innovative building systems required need to educate themselves, or subcontract a portion of the job to a specialist. General contractors have always relied on a variety of trades, but novel building components, such as geothermal systems or rooftop solar, often require a new breed of specialized consultant. At the same time, “green” is a moving target. Under LEED, for instance, projects range from basic certification to Silver, Gold and Platinum designations. The program insists on certain prerequisites for certification and uses a point system to award credits based on project features. For new construction and major renovation projects, for example, pollution prevention during construction is required for every job, while optimizing a building’s energy performance can earn the project up to 18 credits depending on the level of optimization. The more ambitious the green building target, the more important the execution. “Every little detail counts, whether it’s in the design, or whether it’s making that design real – which falls to the contractor,” Hutchinson says. “Every little seal needs to be airtight, every little bit of taping, everything matters at that point because if you fail on any one little thing the performance just drops off.” With a steady stream of new mate-
PHOTO: VANCOUVER CONVENTION CENTRE
GREEN BUILDING
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rials and an evolving definition of green buildings, there’s also no guarantee what’s considered green today will pass muster a decade from now. Contractors will likely need to aim for increasingly ambitious targets in the years ahead.
MAKING A DIFFERENCE ON-SITE
not just in a LEED project where you’re going to see the contractor trying to divert waste and minimize the creation of waste.” Heavy equipment emissions are tougher to tackle, but proactive contractors are putting programs in place to address the issue. Regmi says firms should be scheduling tasks in ways that minimize equipment idling, as well as begin looking to electric or hybrid equipment as opposed to conventional machines that run on gas or diesel. With the added benefit of fuel savings, there’s a monetary incentive for companies able to go electric. Like all top-down initiatives though, these strides toward green construction need rank and file support. “Research shows that one of the most common challenges toward sustainability is general is a lack of awareness and education, apathy, and a lack of sense of duty of care for the environment,” Regmi says. “No green initiatives will ever be successful if the people who are responsible to carry them out have no buy-in.”
PHOTO: VANCOUVER CONVENTION CENTRE
While design is likely the most vital aspect of green building projects, the construction phase cannot be overlooked. In the case of the Arthur Meighen Building, for instance, the contractor cut down on emission by scheduling demolition for a time when the building’s natural gas boilers weren’t needed. New materials were then sourced locally where possible to cut down on transportation emissions. Retaining the building’s original concrete and steel skeleton was also a significant part of the plan. Instead of tearing down the old building, shipping the rubble to a landfill and then ordering new concrete and steel – both materials manufactured using highly carbon-intensive
processes – the very nature of the retrofit helped crews pare down the project’s impact. As emissions reductions become more and more of a priority, Hutchinson expects – and hopes – other rehabilitation projects will avoid wholesale demolition and utilize what’s already in place. Targeting net-zero carbon emissions, the Arthur Meighen Building is one of 15 projects across the country taking part in the CaGBC’s Zero Carbon Building Pilot Program. Among several other designations, it’s also shooting for a LEED Gold standing. For that certification, waste management during construction and demolition, habitat protection/restoration and an indoor air quality management plan are several other construction-stage areas to watch. When it comes to waste, many Canadian builders have hit the ground running. According to Hutchinson, waste diversion rates for green construction projects sit around 90 per cent, and the wider industry is following the example. “That’s trickled down,” he says. “It’s
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RISK By David Bowcott
Industry 4.0:
Embracing technology for asset performance certainty
T
he fourth industrial revolution is upon us and like every new iteration born out of the technology sector it has been given a future-forward moniker: Industry 4.0. Some believe the impact from this industrial revolution could be greater than the fallout of the previous three combined. That is quite a claim when you consider the productive might generated by the previous three (see chart below). To truly understand why some believe this evolution of industry will dwarf all evolutions previously seen, you must investigate the component parts that are coming together at this moment in time and begin to imagine a world where these segments are fully installed and operating optimally. Refer to the chart on the opposite page (pg. 57) for the innovations that are creating such optimism around the potential of Industry 4.0. With these key components identified we can begin to imagine how these segments will come together to create an environment where risk is significantly reduced and productivity significantly improved. For us to imagine that future world, let’s take a step back and look at how human beings manage their productivity and risk.
HOW HUMANS AND ASSETS MANAGE RISK Typically, we manage risk and ensure our productivity is optimized by utilizing our basic senses. Threats to our well-being are seen, heard, tasted, smelled and felt. Likewise, our ability to improve our productive potential is driven from the combination of these senses coming together to optimize the output of our efforts. Building on this analogy, how do humans manage the risks
1st Industrial Revolution Horse and buggy are replaced by mechanization of water and steam power. This powered the growth of the textile industry.
2nd Industrial Revolution Mass production and assembly line manufacturing powered by electricity, as demonstrated by Henry Ford’s Model T.
faced by the physical world (or built world assets)? Well, in the past, they would use these same senses when determining the condition of physical and natural assets around them. Effectively, human beings managed the assets of the world through their senses. In the past, the physical (and natural) assets of the world have relied upon inspections by human beings to ensure their productivity and risk reduction potential was optimized. But such an inspection framework is not ideal, as humans can make mistakes and there are not enough of us to properly assess the condition of all the physical world’s assets. Given the component parts of Industry 4.0, let’s imagine how assets will be managed in their future state. IoT devices can collect sensory data from an asset in real-time, bringing it to an aware state. It’s the state-of-the-art equivalent of hundreds of highly reliable humans monitoring all dimensions of an asset 24 hours a day, seven days a week. Until now, such monitoring was unattainable due to logistics and costs. But the potential of Industry 4.0 technology doesn’t stop there. All these IoT devices provide a powerful repository of data that can be combined with other data sources to create a truly efficient state for the asset – a state in which the asset is aware not only in real-time, but predictive, or aware of its potential future state. The key components of Industry 4.0 provide the asset full transparency into its current state, real-time awareness to minimize event impact and even predictive awareness through the harnessing of machine learning/artificial intelligence algorithms
Industry 4.0 Big data. Internet of Things. 3rd Industrial Revolution The world becomes digital, while Blockchain. Artificial intelligence. Global networks of data are the internet connects people. connected by computers, phones, Software, computers, and smart devices. robotics allow automation and software improves productivity.
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BIG DATA Massive compilations of data previously disconnected, or siloed, coming together to fuel insight and innovation. Collection and storage technology has made big data possible.
INTERNET OF THINGS Every device connected to the internet thereby providing data and information about our physical world that was previously unattainable. The nerves that make the physical world aware.
BLOCKCHAIN Technological innovation that allows for storage, structuring and security of all data collected. Certainty around data quality and ease of access to data to drive insights and innovation.
MACHINE LEARNING & ARTIFICIAL INTELLIGENCE The brain of Industry 4.0 combines its ability to learn and its ability to process massive amounts of data into better decisions, increased productivity and lower risk
THE FOUNDATION – MOORE’S LAW GOING VERTICAL Gordon Moore’s law indicates the number of transistors that can fit onto a microprocessor will double every two years. This law has continued to hold true for the past 50 years and without this exponential progression in computing power many of the technologies fueling Industry 4.0 would not exist. As is the case with any exponential progression, Moore’s law is going vertical, which has resulted in a previously unimaginable scaling of technological innovation – thus it represents the foundation fueling the optimistic impact of Industry 4.0.
that sift through mounds of data looking for learned data signatures that predict future risk events. By combining these key aspects of Industry 4.0, governments, corporations and everyday people should realize a significant reduction in the total cost of owning assets. Aware assets will have a greater likelihood of being completed on-time and on-budget, and they will have a greater likelihood of being delivered defect-free. Perhaps most importantly, they will also have a greater likelihood of remaining operational throughout their extended life – in other words, face minimal unplanned downtime. To truly understand why some believe that Industry 4.0 could have a greater impact on the global economy than the previous three industrial revolutions, you have to take the potential of the future state of asset’s in the economy and combine this knowledge with an estimate of the total cost of ownership of all assets within the economy. When looking at the total cost of ownership for an asset, you must factor in the cost of design, construction, operations, human capital, and societal costs. It should be noted that the operational costs, human capital costs and societal costs are those incurred over the entire life of the asset and thus should be considered in a present value state. For any typical asset, design makes up approximately 10 per cent of the construction costs, and the construction costs are approximately 15 per cent of the operational costs. Further, the human capital costs are approximately double the operational costs. Given these metrics, consider the following, the total inventory of built world assets globally is over $220
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RISK How Will Assets Be Managed in the Future?
Components of Asset Awareness
Asset awareness through IoT
trillion. Based on this measure, the total cost of ownership for design, construction, operations and human capital is as beyond comprehension at a staggering $4.72 quadrillion! It is important to note that the above calculation does not consider the societal costs of the asset. These costs, such as being stuck on a subway or the impact of a chemical leak on the local population, can be equally enormous. Seeing how we are talking about a cost to the economy that numbers in the quadrillions and given the potential impact on these costs from Industry 4.0 technologies, you can begin to understand why some believe this industrial revolution will dwarf the previous three. In addition, with the global economy currently facing numerous hurdles, you start to see how significant modernizing the way we design, construct and operate assets would be at this moment in history. Productivity and risk will be significantly impacted by the convergence of these technologies and the economy will be forever changed. Hopefully it will be for the better.
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.
• Design & Construction $220 trillion (4.67 per cent of total cost of ownership) • Operations
• Human Capital
$1.5 quadrillion (6.67 times design & construction) $3 quadrillion (2 times operations)
• TOTAL $4.72 quadrillion
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CONTRACTORS & THE LAW By Katherine Ayre and Adrienne Ho
Getting ready to take off:
D
New rules to consider when using drones on construction sites
rones can be valuable, cost-effective tools on construction sites. Typically used to conduct aerial surveys or collect data, they can also carry bitumen printers and transport payloads across long distances. As of June 1, 2019, however, drones will be subject to new Transport Canada regulations. Here are some key questions those in the construction industry should consider after the new rules come into effect:
CAN I FLY MY OWN DRONE? Yes, if you comply with the new regulations. The drone’s pilot must have passed an exam and, depending on how the drone is used, complete a flight reviewer assessment. One of the key changes is that all drones, including ones you already own, must be registered. The registration number must be visible on the drone, and the pilot must be able to easily access the certificate of registration.
Flown in uncontrolled airspace. Flown more than 30 metres (100 feet) horizontally from bystanders (that is, those not involved in the drone’s operation). • Never flown over bystanders. If any of the above conditions are not met, you are conducting advanced operations. This triggers additional requirements. Given the bystander rule and the nature of construction projects, drone use on construction sites might be considered to be advanced operations. If your drone exceeds 25 kilograms, a Special Flight Operations Certificate (SFOC) from Transport Canada is required to fly. • •
WHERE WILL MY DRONE BE FLOWN?
Once you determine whether your drone is used for basic or advanced operations, you should take heed of altitude restrictions if you are conducting aerial surveys. An SFOC is required if a HOW MUCH DOES MY DRONE WEIGH? drone is flown more than 400 feet above the ground or more than A small remotely piloted aircraft systems (RPAS) will be defined 100 feet above any building or structure if it is less than 200 to be a drone weighing between 250 grams and 25 kilograms. feet horizontally away from it. Special rules apply if the drone will Depending on how the drone is used, it may be categorized as a be flown near airports, aerodromes, or military sites. Given that tool for basic or advanced operations. To qualify for basic operaconstruction projects may often be near such areas, you should tions, the drone must be: carefully examine these new regulations. For large construction sites, familiarize yourself with the concept of “visual line-of sight.” Advanced Operations on a Construction Site This occurs when the pilot continually maintains unaided visual contact with the drone. This allows operators to keep In controlled airspace or near an airport /heliport control and scan surrounding airspace to avoid other objects. > 400 ft above the Though “visual observers” ground can help keep a drone within visual-line of sight, they need to < 200 ft understand how the regulations away from a apply to them. If visual line-of structure and >100 ft sight cannot be maintained, a above any SFOC will be required. structure Over bystanders
WHO WILL BE FLYING MY DRONE? Depending on whether basic or
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ADVERTISERS’ INDEX & WEBSITES Adrian Steel.......................... www.AdrianSteel.com .................................................. 59 Ahearn.................................. www.ahearncanada.ca ................................................ 12
advanced operations are undertaken, pilots must meet different licensing requirements. Crew members are also subject to these new regulations, which include a 12-hour alcohol consumption prohibition. If your pilot is flying your drone while viewing a streaming video image (akin to actually being on board), a visual observer has to perform detect and avoid functions.
WHAT ARE MY OPERATING AND RECORD-KEEPING PROCEDURES? There are also multiple provisions on safety and operations, such as establishing flying procedures, conducting pre-site surveys, and flying in acceptable weather conditions. A SFOC may be required if certain loads are being transferred, and operators must keep certain records that can be subject to government inspection. As with any construction project, documentation is key.
WHAT TYPE OF DRONE DO I HAVE? Under the RPAS Safety Assurance rating system, not all drones are approved for all types of operations. Transport Canada has indicated that it will publish an Advisory Circular to provide more information.
WHAT ARE THE PENALTIES FOR NON-COMPLIANCE? Depending on the contravention, the maximum fine is $5,000 for individuals, $25,000 for corporations, or imprisonment.
WHAT ABOUT PRIVACY, CYBERSECURITY AND INSURANCE?
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Trespassing and privacy laws should be considered in drone use. For example, if the drone is being used to collect data, procedures may be required to govern its use, storage and protection. Agreements with unions should be reviewed regarding drone usage. Given the increased connectivity on project sites, cybersecurity may be an important aspect to consider. Finally, as accidents can happen, you should consider whether you have the appropriate insurance coverage for property and third-party liability.
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TAKEAWAY
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The potential use of drones on construction sites is an exciting area of development. That said, time should be taken to learn the new regulations and consider if appropriate risk management policies and procedures are in place before you take off with your drone.
Katherine Ayre is an aviation lawyer at Borden Ladner Gervais LLP. Adrienne Ho is an associate in the Construction Group at Borden Ladner Gervais LLP. This article is for information purposes only and may not be relied on for legal advice. Please send any comments to editor@on-sitemag.com
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SOFTWARE By Jacob Stoller
An ounce of prevention: Planning IT projects
No contractor would show up on a job site with no plan or schedules, yet many embark on information technology projects with a very vague set of goals
I
t is often said that a problem well defined is a problem half solved, yet we humans have a tendency to skip the planning part and jump right into a solution. How companies handle software projects is a case in point – and contractors are no exception. “I see many companies implementing without a clear roll out plan,” says Dennis Stejskal, customer experience director for Sage Construction and Real Estate. “One of the components of the implementation that often is missed is setting a company standard on the use of the technology, and then training to that standard.” The results are all too familiar. Projects get delayed by unexpected complications. Costs run through the roof. Solutions arrive in the field with gaps that require manual intervention or workarounds from IT. Field personnel see a solution as “something corporate has forced on us” and the system gathers dust. As Yogi Berra quipped, “If you don’t know where you’re going, you might wind up someplace else.” The trouble begins with the faulty assumption that business owners don’t need to be involved in software decisions. “I think there’s an expectation that if you install software on a server, you’re automatically going to solve a lot of business problems,” says Rick Deans, executive vice-president of Industry Engagement with Scottsdale, Ariz.-based construction software vendor InEight Inc. “That’s something I try to get out ahead of.” The first step is to bring all stakeholders to the table – not just IT people and tech-savvy users. “We need to get business process owners involved,” says Gerry Salm, senior manager at Edmonton-based PCL Construction. “We have power users who have some great ideas, but we really need to involve people who have a bigger vision of where the business is headed.” The initial conversation is not on software features and functions, but on the business processes that the software will be supporting. “My starting point with clients is that software is an enabling tool and works best when there are established business processes,” Deans says. “What I try to do with my clients is build a map for how the solution is going to support those business processes. And part of that exercise might be challenging some of those business processes.” Deans points out that he often brings people into the room – perhaps an estimating team and an execution team – that have never talked to each other before. “It’s really interesting to see
those walls break down where you get them sitting around the same table,” he says. “I often hear things like, ‘Wow, you folks think of everything!’” The dialogue with vendors is also critical. “Both groups bring something to the table that can help the other out,” Salm says. “We know we’re not a software development company, so they have some practices that we can take advantage of. We also have alignments with our business that software vendors don’t understand. So it’s a meeting of the minds and determining what works best for both groups.” Facilitating these meetings properly is a must. “These conversations can run off the rails,” Deans says, “so we need to keep people focused on what the inputs are, but more importantly, on what the outputs and benefits are going to be.” A software development framework known as Agile provides a formal roadmap for maintaining this focus throughout the process. Many vendors and some contractors are now employing it, particularly on large, complex projects. Agile provides both the structure and the tools that ensure a highly collaborative approach. “What the Agile framework does for us is get projects done quickly,” Salm says. “Because you’re always coming back to the business with ‘did I get this right?’ whether that’s at the stage of requirements, design, or development. Our solution framework is about keeping a focus on that.” The Agile approach will be familiar to contractors who practice Lean construction, where the general contractor works collaboratively with all stakeholders throughout the project (see On-Site’s December 2019 issue for a more in-depth look at Lean). “Some people have pointed out to me that they’re seeing this collaboration on the business side as well as the software side,” Salm says. All this demands business owners make IT an ongoing part of their strategic conversations. “As companies grow, they need systems that can expand with them,” Stejskal says. “We advise companies to align their corporate objectives with IT strategies and objectives. There are a lot of companies that don’t do that.”
Jacob Stoller is principal of StollerStrategies. Send comments to editor@on-sitemag.com
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