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The Road
The Ontario Road Builders’
365 Brunel Road, Unit 1
Mississauga, ON L4Z 1Z5
Tel: (905) 507-1107
Fax: (905) 890-8122 www.orba.org
Publisher Robert Thompson Editor Ali Mintenko
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Gary Fustey, Walter Niekamp, Ashley Privé, Jack Smith, David Tetlock
here are some interesting issues coming about over the next few months including the Prompt Payment Bill and the Fair and Open Tendering Bill. In the fall, we are also hoping to see a Slow Down and Move Over Bill.
Sometimes it is challenging for ORBA to determine a policy position with regards to legislation or advocacy. We have experienced two such challenges within the last month. The first was the Fair and Open Tendering Act. While on the surface this Bill delves into resolving a loophole in the Ontario Labour Relations Act, there is the potential of opening up debate on union vs. non-unionized contracting within municipalities and school boards. ORBA has taken a position through dialogue and discussion at our Board that the Fair and Open Tendering Bill is, in our opinion, just that - all about fair and open tendering. Fair and open competition is healthy for our industry. It leads to more bids, ultimately reducing costs, which is in turn good for Ontario tax payers. For more information on the Fair and Open Tendering Act see the June 5th ORBA Information Highway e-Newsletter emailed to you or available on our website through “Programs and Communications.”
Our other challenging advocacy position involves how we respond and dialogue around the Metrolinx Investment Plan. There are a number of revenue generating recommendations being put forward by Metrolinx to fund the much needed public infrastructure required in Ontario. In the end, our position is that we support two streams of transportation infrastructure spending: the first is roads, bridges and highways and the second is public transportation. We believe they should have separate budgets, and that the roads, bridges and highways budget must be maintained and increased in order to meet provincial and municipal needs in these areas. We also feel strongly that
both types of transportation infrastructure should have their own dedicated funding.
Specifically speaking to the revenue tools, as an organization we have decided that we will not be participating in the discussion on the revenue tools being considered by the Ontario Government and Metrolinx. There are many qualified think-tanks and knowledge based organizations that can provide research, recommendations and input into appropriate funding for public transportation infrastructure. For more information on the Metrolinx Investment Plan visit their website at metrolinx.com.
Our industry continues to experience accidents in or around work zones and with maintenance vehicles (including snow plows) that involve speeding and careless driving by the general public. ORBA has been involved in numerous campaigns around safe driving in construction zones and around snow plows. We have been advocating for changes to lighting to allow for more visible technologies to be used on maintenance vehicles. We are also lobbying for maintenance vehicles and their unique lighting to be recognized under the Highway Traffic Act along with other emergency vehicles. We are finding support for this issue at Queen’s Park and are pushing for this to be included in related legislation being considered.
Whether it is through our own efforts or combined efforts with our industry partners, it is exciting to see our advocacy and government relations activities paying off. I urge you to continue to be involved in ORBA’s efforts through dialogue with your local politicians and providing us with your feedback on issues that are important to you. On our end we will commit to keeping you informed about our advocacy and government relations efforts and activities. If you have any questions, issues or feedback please email me at geoff@orba.org.
Around Queen’s Park Budget
Gossip about the where, what, and when in the lead-up to the reading of the Ontario Budget on May 2 proved quite fascinating this year. There seemed to be more speculation abound amongst stakeholder groups than normal, hypothesizing about the direction that would be taken by the new Premier and Finance Minister, after a similar look and feel to the Provincial Budget process over much of the past decade under the stewardship of former-Premier Dalton McGuinty.
In this vein, the first budget for the Liberal Party under Premier Kathleen Wynne, A Fair and Prosperous Ontario, did not disappoint. The Budget takes on a new tone and focuses on infrastructure and jobs as its key centerpieces, rather than the health-care and education focus of budgets in the recent past. This is an important development for the construction industry, as it means that our message on the need to address the infrastructure debt is being heard. This is evidenced by the commitment to honour former-Premier McGuinty’s plan to spend $35 billion over the next three years on infrastructure, including an additional $500 million for 2013-14 ($13.1 Billion as compared to $12.5 Billion previously for 2012-13), in spite of the fiscal austerity message being preached. This provides the industry with a degree of funding stability over the medium-term that many other industries are presently lacking.
I do sing the praises of the government’s budget announcements with a bit of caution though. My reservations come on a number of fronts, beginning with the revelation
2013: Focus on Infrastructure
by Patrick McManus, ORBA Policy Analyst
in Budget 2013 that the investment commitments to infrastructure made for the 2012-13 fiscal-year were not met, with more than one billion dollars left on the table. Furthermore, drilling down in a bit more detail, approximately one-third of the one billion dollar under-spend can be tied to the Ministry of Transportation (MTO). This is a particularly concerning development, given that this is the third year in a row of under-spend at Transportation, with the amount increasing each year since 2010. Under-spending the budget has been something that ORBA has addressed a number of times with the MTO over the past two years, but our concerns have yet to be addressed. Now with the Provincial Highways budget set to decrease from $2.4 billion in 2012-13 to $2.2 billion in 2013-14, our concern is mounting. If the MTO does manage to spend the entirety of its allotted highways budget, then it will actually represent an increase over what was spent in 2012-13. However, we must be guarded in our optimism until this can be demonstrated.
Although the Budget was light on specific project details, there were a number of construction projects mentioned, including Highway 17 in Renfrew, Highway 401 in Waterloo Region and Northumberland, and Highway 66 in the Kirkland Lake area. The planned extension of Highway 427 from Major Mackenzie to York Region will also proceed, as will construction on new high-occupancy vehicle (HOV) lanes for sections of Highways 401, 404, 410 and 427.
On the transit side, the province will once again increase spending, having
committed $3.3 billion in 2013-14, up from $2.5 billion in 2012-13. This will ensure that the government maintains their commitments for existing projects and can move forward on the planned capacity expansion of GO Transit to move an additional 50,000 people, including developing more parking spaces, stations, and fleet maintenance facilities.
In terms of forward-looking components of the budget, Premier Wynne began to implement her vision for dedicated transportation revenue tools by announcing the previously discussed initiative to convert certain HOV lanes into high-occupancy toll (HOT) lanes. Other revenue tool decisions will be informed by the Metrolinx report due out in June. This is an important development and is indicative of the Premier’s understanding of the need to maintain stable funding for transportation infrastructure as a means to kick start economic growth and reduce traffic congestion over the long-term.
Ultimately, the devil will be in the details of the first budget under the leadership of Premier Kathleen Wynne. The Budget has provided high-level spending information, but now we await the particulars of where, what, and when this money will be spent, and more importantly, how to assure that projects will be delivered. With an $11.7 billion deficit to be eliminated by 2017-18, ensuring that all committed money is being spent will be priority number one for the coming fiscal-year.
Risk Management
From the first contract to the final handshake, the road to job completion is paved with risks. Understanding these risks, and what steps can be taken to mitigate them, is therefore critical to navigating the operational obstacles that can arise within even the most well managed jobs.
“Risk management is becoming a core component of a contractor’s success and ability to survive,” says Robert Dempsey, President and COO of The Guarantee Company of North America. “In my mind, the senior management of every successful construction company needs to sit back and take time out from their busy schedules to identify what the inherent risks are to the operation it runs, because those risks can be significant.”
The list of potential roadblocks runs deep. Be it credit risk, the failure to meet all the terms and conditions of a lending letter with the bank; compliance risk, the failure to meet provincial or federal regulations; fidelity risk; or liquidity risk; many of these can have a direct and severe impact on one’s bottom line.
“One of the most important risks to any contractor is receivables risk. All contractors rely heavily on the owner to have the ability to pay, and failure to receive payment in a scheduled fashion can cause most contractors liquidity problems,” explains Dempsey.
Chief amongst these risks, he adds, are operational risks which concern the safety of staff, security of equipment and the contractor’s overall ability to manoeuvre an everchanging road building environment. “Contractors have to be awfully careful, and usually this comes from a long tooth of experience in the industry to be aware of potential x-factor risks.”
Managing Risk
There are many ways to mitigate risks, with many companies and experts available to shoulder the task. One such mechanism is bonds, which can be a key tool in safeguarding both project owners and sub-trade partners.
“[Bonds] are a risk transfer tool not so much for the contractor, but for the owner of the project,” says Dempsey. “Bonds kick in when there’s a default of the head contractor or principal named on the bond. In addition, there is a risk transfer mechanism within a labour and material payment bond in that it helps the sub-trades with their credit or receivables risk. If a head contractor defaults and hasn’t paid the sub-trades, the sub-trades are somewhat protected if they’ve got valid claims under the labour and material payment bond, which the owner has requested with the contract signing.”
Sheila E. Thompson is another expert in the bonding arena. As president of Rosenberg and Parker of Canada, a leading issuer of Performance Bonds and Labour and Material
by Matthew Bradford
Payment Bonds, she insists bonds are integral in today’s construction landscape, explaining, “A performance bond guarantees that the contract will be completed according to its terms and conditions for the contracted price and will be kept free of deficiencies for the specified period, usually one year from the date of substantial completion. The Labour and Material Payment Bond guarantees that qualifying subcontractors and suppliers who have a direct contract with the principal on the bond will be paid.”
“Like any guarantee of this sort, there are certain restrictions, but based on the millions of dollars in claims that surety companies pay every year, the need for performance and payment security has never been greater,” she adds.
A veteran of the industry, Thompson has identified key missteps and misconceptions contractors make when obtaining a bond—the most common of these boiling down to a of lack of awareness and due diligence.
“Prior to the issuance of a surety bond, it is important to ensure that a legal contract exists and that it is clear, concise and enforceable. Standardized contract wordings are preferred since they are usually consistent and fair to all parties. Both the bond and the contract impose obligations on the contractor and the owner, so it pays to be aware of those obligations and ensure that they are fulfilled,” she explains, adding. “It is always wise to confirm that the bond has been properly completed and fully executed—that is, signed and sealed—by both the Principal and the Surety. The bond should be issued by a surety company licensed to transact the business of surety in province where the work is located. Lastly, the validity of a bond can be confirmed with the surety company—either directly or through a surety broker—if there are any concerns.”
Furthermore, Thompson emphasizes the importance of documenting the completion of a project so as to avoid complications, saying, “Construction bonds have no provision for cancellation. The obligations under the bond can be fulfilled, but there is no way to cancel a construction bond. The standard Canadian Construction Documents Committee (CCDC) 220 Performance Bond includes a clause that says that:
‘It is a condition of this bond that any suit or action must be commenced before the expiration of two (2) years from the earlier of (1) the date of Substantial Performance of the Contract as defined in the lien legislation where the work under the Contract is taking place, or, if no such definition exists, the date when the work is ready for use or is being used for the purpose intended, or (2) the date on which the Principal is declared in default by the Obligee.’
Therefore, it is important to close out the project properly and have the necessary documentation to prove Substantial Performance of the Contract.”
Over and above insurance measures, contractors large and small can also shore up their defences through the creation of disaster recovery plans. These can be vital fall-back blueprints in the event of loss of key personnel or vital company data.
“Disaster recovery is becoming more and more critical because of our reliance and dependency on IT. When those things fail, it’s like cutting your right arm off. You have to have a disaster recovery plan in order to maintain the continuity of your business,” insists Dempsey.
Changing Risk Landscape
Key to the risk conversation is an understanding of where the industry is heading. Charles Quenneville, Account Manager with Aon Risk Solutions, is one of many risk specialists who believe the shift toward alternative delivery models is directly impacting the way in which contractors are approaching risk.
“With the involvement of third-parties such as private sector lenders, the importance of contractors having the ability to demonstrate how they manage risk effectively is critical to their success in the new world of construction,” he offers.
This shift has put an onus on contractors to not only be much more transparent in their dealings with public and private partners, but ready to prove they are the best in their field in managing operational risk.
“As owners shift towards new delivery models, the stakeholders involved will scrutinize the operations of the contractor due to the important role they play in managing the risk of
the project. For example, if a contractor can show they are ‘best in class,’ they will be able to achieve better financing terms from lenders in P3s. In addition, by being able to demonstrate they are ‘best in class’ they will have access to insurance, surety and performance security product innovations that are not available to just any contractor off the street,” says Quenneville.
Products such as benchmarking services, Liquid Surety or Subcontractor Default Insurance are among the tools that contractors will need to remain competitive. Furthermore, Quenneville encourages contractors to partner with risk experts, adding, “Contractors need to align themselves with strategic advisors that can help benchmark their operations against best in class indicators. They should seek guidance from advisors who have the greatest depth of experience and the ‘battle scars’ to prove it.”
Today’s jobsites are subject to any number of risks, many beyond those discussed in these pages. Fortunately, every risk is manageable, either internally through the acquisition of a risk manager and comprehensive disaster strategies, or through the assistance of a seasoned professional.
At the end of the day, says Dempsey, “Understanding all of your risks is step one. Next is understanding your opportunities for risk transferring off of your balance sheet onto a third party, and then making that choice whether its worth the cost.”
“Over time, through a variety of economic cycles, it has been worth the time, the effort and the cost.”
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CNIB Receives Annual ORBA Donation
by Matthew Bradford
ORBA president John Blake paid a special visit to St. Catharines this spring to hand deliver a $5,000 donation to the Canadian National Institute for the Blind’s (CNIB) Niagara branch.
The contribution was made as part of the association’s annual commitment to donate a portion of the funds from its Annual Convention to a charity of the president’s choosing. For Blake, a Niagara native, selecting CNIB as this year’s recipient was a natural choice given his history within the region and his family’s experience with sight related conditions.
“As the president of the Ontario Road Builders Association, we are very excited to contribute to CNIB,” he said, explaining, “We picked CNIB because, on a personal level, my mother-in-law passed away in November and she had age-related macular degeneration. She really loved to read her magazines and her tabloids, and in the last 10 years of her life she wasn’t able to do that. Being from Niagara, I thought that CNIB Niagara was a very fitting charity for ORBA’s donation.”
Formally established in 1918, the CNIB has helped generations of Canadians with vision loss live full and productive lives. It provides a broad range of rehabilitation and support programs, as well as access to assistive technologies and resources like the CNIB Library, Canada’s largest collection of accessible materials for people with print disabilities. In addition, the CNIB conducts and supports world-class research spanning all areas of vision loss, and is a strong advocate for creating a barrier-free society for Canadians who are blind or partially sighted.
CNIB’s Niagara office is a critical component of the organization’s national network. In operation for over 50 years,
the branch services 3,100 clients in the Niagara Region. It consists of two part-time and four full-time staff, including Cathie Mason, CNIB regional manager of services and operations, who was one of the branch’s staff on-hand to receive ORBA’s cheque and thank the association for its contribution.
“This partnership is absolutely wonderful. CNIB services— and the need for services − are especially important in the Niagara Region. We have seen a significant growth in need within the aging population, with the most significant vision loss being age related macular degeneration. And, with our recent expansion, this will really help enhance client services,” she said during the cheque presentation.
Ryan Chin, CNIB manager on community giving, was also present for the donation event. As a relative newcomer to the office, he said he is eager to put the funds to good use toward a number of organization initiatives, noting, “This is an amazing partnership that we’ve formed, especially now during May’s NIB Vision Health Month where we’re working to encourage people to get their eyes checked. This is really critical.”
CNIB’s May Vision Health Month marks just one of the many yearly promotions conducted throughout the county by the association. Its goal, like all others, is to promote healthy eye care and raise funds and awareness for CNIB’s programs and services which benefit thousands of Canadians in every province.
To get involved, learn more or to donate, call CNIB Helpline at 1-800-563-2642, email info@cnib.ca or learn all about CNIB’s initiatives and successes at www.cnib.ca.
MTO Announces Highway 407 Expansions
by Matthew Bradford
Regions east of the Greater Toronto Area have been tapped to receive a sizable infrastructure investment through the planned extension of Highway 407 East.
Slated for a 2013 commencement, the project will see Highway 407 stretched beyond its current terminus at Brock Road in Pickering to Highway 35/115 in Clarington. In addition, the development will include the construction of two 10 km north-south links—West Durham Link and East Durham link— that will connect the newly extended Highway 407 to Highway 401.
“We know how important Highway 407 East is to the communities in the Durham, Peterborough, and Kawartha Lakes regions,” says Patrick Searle, a spokesperson with the Ministry of Transportation. “It is essential to local job creation, economic growth, and reduced congestion.”
The Highway 407 East expansion will be conducted in two phases, with the first to include the development of a 22 km Highway 407 East mainline consisting of a six-lane east-west freeway from Brock Road to the West Durham Link, a four-lane east-west freeway from the West Durham Link to Harmony Road in Oshawa, and interchanges at Lake Ridge Road, Baldwin Street (Hwy 7/12), Thickson Road, Simco Street, and Harmony Road. Work on the 10 km West Durham Link itself will include the development of a four-lane northsouth freeway joining Highway 407 to Highway 401, and interchanges at Highway 407 East, Highway 7, Taunton Road, and Dundas Street.
Phase one is being conducted as a Design Build Finance Maintenance (DBFM) project, with an approximate contract value of $1 billion, or $1.6 billion when adjusted for inflation over the 30-year life of the project. It has been assigned to the 407 East
Development Group General Partnership (407EDG), a consortium selected by the Ontario Ministry of Transportation and Infrastructure Ontario who’s key members consist of Canada’s SNC Lavalin and the Spanish firm Cintra Infraestructuras S.A.
The second phase of the extension will include the development of the east-west section from Harmony Road to Taunton Road and the East Durham Link. Phase one is anticipated to wrap in 2015, with the final phase to be completed by 2020.
Looking ahead, Mark Guinto, Coordinator, Public Affairs with the City of Pickering, says the expansion will bring much needed relief for commuters in the region, noting, “Highway 407 East will help relieve congestion and support the efficient movement of goods and people through the eastern Greater Toronto Area and beyond. It will create opportunities for business, accommodating population and employment growth and providing emergency detour routes for Durham Region.”
environmental
assessments
Plans to extend Highway 407 East have been in the MTO’s crosshairs for nearly a decade. In 2005, the agency began work on the 407 East Environment Assessment, a study that reviewed the current and future transportation needs within the Region of Durham. In 2010, the Minister of the Environment (MOE) and the Cabinet greenlit the expansion on the agreement that key environmental concerns were addressed.
In addition, numerous Endangered Species Act (ESA) permits were required and obtained for phase one; and the project was made subject to a Community Value Plan which featured, among other highlights, plans for enhanced corridor landscaping, wildlife crossings; and wetland restoration.
Benefits to all
Over and above bringing economic benefits to surrounding regions, Highway 407’s expansion will create significant opportunities for local contractors and tradesmen. According to Searle, the first phase alone will generate 900 construction jobs, and engage material suppliers and subcontractors from around the Greater Toronto Area.
“Highway 407 East will help relieve congestion and support the efficient movement of goods and people through the eastern Greater Toronto Area and beyond. It will create opportunities for business, accommodating population and employment growth and providing emergency detour routes for Durham Region.
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Aecon’s Mackey and McIntyre Awarded Queen’s Jubilee Medal
by Matthew Bradford
In April 1997, Australian adventurer Warren MacDonald’s reality was forever altered after a trek to Hinchinbrook Island’s tallest peak left him pinned underneath a one-ton boulder for two of the longest days in his life. Fortunately, his companion Geert van Keulen was able to rally help, but MacDonald’s rescue did not come without life-changing consequences. Days after his brush with death, MacDonald awoke in a hospital to discover both of his legs had been amputated at mid-thigh and that his life had taken a completely new path.
2012 marked the 60th anniversary of the Queen’s coronation as monarch over the Commonwealth realms. In honour of the royal milestone, the Queen’s Diamond Jubilee was held to celebrate the Queen’s decades-long post and to recognize Canadians who have contributed greatly to their country with a Diamond Jubilee Medal.
Sixty thousand Canadians were selected to receive the distinguished medal. Among these were Dave Mackey, a former superintendent with Aecon’s materials division; and Everett McIntyre, senior advisor of special projects with Aecon Construction.
Dave Mackey
From his first job as labourer in 1959 to his longstanding post as crushing superintendent, Dave Mackey became a notable character in Aecon’s history. For over 50 years, the Maple Valley farm boy rose through Aecon’s ranks to become one of the company’s most dedicated employees and a highly respected leader at its Marmora Quarry.
Last year, Mackey’s contributions to both Aecon and the Canadian construction industry were honoured with a Queen Elizabeth Diamond Jubilee Award during the
Queen’s 60th anniversary celebrations—an award Mackey says he never saw coming.
“It was certainly unbelievable. It kind of blew me away, really, especially since I’ve been retired for almost two years now. I never even thought of getting something like that, but it was certainly an honour to receive it,” he admits.
Mackey cut his teeth in construction after leaving the farm life in June 1959 to join Peel Construction’s (now Aecon) crew as a labourer on a subdivision job in Brampton. With sledgehammer, rake and wheelbarrow in hand, Mackey learned the basics of the business on the job during the day, while spending his nights away from home in a construction camp. Shortly after joining up, he was transferred to Peel Construction’s asphalt crew where he served as an asphalt power operator before being promoted to paving foreman in 1961.
Over the next six years, Mackey worked tirelessly on Brampton’s subdivisions and local highway expansions until 1967 when he accepted the role of asphalt superintendent of a portable batch plant in Gananoque, Ontario. Here, Mackey was tasked with helping to oversee work on Aecon’s first deep strength asphalt project for a paving job on Highway 401.
The next five years saw Mackey stationed in various locations throughout Ontario. In 1992, he was promoted to the role of crushing superintendent for Aecon’s materials division at the (then) only quarry under Aecon’s banner. It was here that he stayed until his retirement in 2011.
Looking back over his career with Aecon, Mackey says it was the people and working environment that kept him loyal to the Aecon crew, noting, “It was a family run business, and that’s really what kept me there. Being a family business meant you worked right with them, and you felt like a genuine part of it. I enjoyed working with fellow employees and I enjoyed the people I was working for.”
It’s been a long time since Mackey picked up his first shovel for Aecon. In 2009, he was recognized as one of the first Aecon employees to clock in 50 years within the company—an achievement that speaks volumes to his dedication, skill and passion for the industry. Today, he continues to apply that same passion and energy to work on his family and farm in Badjeros where he now resides with his wife Thelma.
everett Mcintyre
It’s been over half a century since Everett McIntyre first left his father’s farm near Singhampton to launch a career in construction. Starting as a tractor operator for K.J. Beamish, McIntyre soon found employment closer to home in Barrie as a bulldozer operator with Peel Construction. It was a decision that spurred one of the longest careers in Aecon’s history and special recognition during the Queen’s 60th anniversary.
“I joined Peel Construction because it happened to be convenient, but it turned out to be the best decision I made,” stated McIntyre in an earlier interview with Aecon. “That’s the other thing that hasn’t changed. The Armstrong brothers were really super people. You felt like you were part of the family. And we still have really super people. It’s just a good place to work.”
From that first job in 1959, McIntyre’s career took off with Aecon. In 1964, he was appointed to the role of foreman at the young age of 23. For the next twelve years, McIntyre rose from superintendent to project manager, playing a critical role in
major construction projects, including work on Ontario’s 400 series highways, a 65-foot dam on the West Don River, and a CN container yard, to name a few.
It wasn’t until 1994, however, when he took on one of the largest and most memorable tasks of his career, assuming the project manager duties for Highway 407.
“That was a huge job, a billion-dollar project, and I had 400 people reporting to me. It was a challenge, but a good challenge. The project went well and I can honestly say I had fun every day,” he recalls.
It’s been an upward trajectory for McIntyre through the years, and his contribution to Aecon’s growth has not gone unnoticed. On his 50th year with the company, he was honoured with a company award in recognition of his decades of service. Later, in January 2013, he was also one of a select few Canadian residents to receive the Queen’s Diamond Jubilee Award.
“It’s certainly a great feeling to be honoured for the Queen’s Diamond Jubilee award, but also it takes a great company like Aecon to be in part to help me accomplish the award,” says McIntyre.
Looking ahead, McIntyre says he has no plans to leave the company just yet, adding, “As long as I have my health, I find it hard to sit around. So I probably will do whatever to help Aecon and their young force of good people.”
ORBA congratulates both Dave Mackey and Everett McIntyre on their well-deserved awards.
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Aboriginal Procurement Pilot Project Breaking New Ground
Carling Quarry marks the spot for a joint aboriginal initiative currently in operation under the Ministry of Transportation’s Aboriginal Procurement Pilot Project banner. The Northeastern Region site was selected by the ministry to supply aggregate and manage excess material for the fourlaning of central Ontario’s Highway 69, with the pilot project responsible for linking local First Nation groups with industry stakeholders for the purpose of crushing and stockpiling the quarry throughout the highway’s construction.
The Ministry of Transportation (MTO) delivered tenders for the contracts to four aboriginal communities surrounding Carling Quarry in February 2012. Following an in-depth selection process, it awarded the contract to a partnership group consisting of Magnetewan First Nation, Shawanaga First Nation, and The Miller Group.
“[MTO] issues permits for aggregate sources in strategic locations to provide quality materials and reduce haul distances for upcoming construction projects. For this project, MTO has been initiating advance crushing contracts to develop new aggregate sources for scheduled projects to promote more competitive bids,” explains Phyllis Bennett, Manager of Issues Management and Media Relations at Ontario’s Ministry of Aboriginal Affairs.
Speaking to the project’s relevancy to the ministry’s aboriginal development goals, she says, “This work was identified as an ideal candidate for the Aboriginal Procurement Pilot due to its close proximity to Aboriginal communities located along Highway 69. This contract will contribute to future skill and capacity development that will provide more economic opportunities for these Aboriginal communities.”
The partnership group was awarded the contract in spring 2012 and began work on the pilot project in May.
a Year in Review
The Carling Quarry contract represents one of the partnerships that have been, or are currently being, formed under the MTO’s Aboriginal Procurement Pilot Project initiative. Launched in March 2012, the two-year test program was created to increase Aboriginal business involvement in government procurement, thereby supporting Aboriginal economic development and assisting in the creation of partnerships between Aboriginal and non-Aboriginal businesses.
“By using a variety of procurement methods, such as evaluation criteria that encourages Aboriginal business participation, the Province can help stimulate Aboriginal business development, build relationships between Aboriginal suppliers and government buyers, and indirectly create new employment opportunities,” says Bennett.
To qualify as an Aboriginal business, the organization must be 51 per cent or more owned and controlled by an Aboriginal person (or persons). In the event of a joint venture or consortium, these must also be 51 per cent owned and controlled by an Aboriginal person or persons, and at least one third of the value of the work performed under the contract must be completed by an Aboriginal business, either via the Aboriginal partner and/or contractor, or sub-contractor.
To help foster partnerships between Aboriginal businesses and future non-Aboriginal partners, the MTO has made available an online Ontario Aboriginal Business Directory featuring a comprehensive list of Aboriginal businesses and an overview of their industry products and services.
The Ontario Aboriginal Business Directory can be found online at www.ontario.ca/aboriginalbusiness.
ORBa on Board
Since the pilot project’s inception over one year ago, ORBA has played a key supportive roll in raising awareness and participation in the MTO’s Aboriginal Procurement Pilot project. Specifically, the association helped form the ORBA/MTO Aboriginal Procurement Pilot Working Group with the goal of working alongside government representatives to bring word of the project and its benefits to ORBA members and industry stakeholders.
The working group was set up by ORBA to uphold four primary principals:
• To work within the existing low-bid framework;
• to promote the transfer of knowledge to Aboriginal businesses and communities;
• to promote sustainability of ORBA member and Aboriginal businesses partnerships; and
• to maintain the transparency and fairness of the existing system.
Among the ORBA / MTO Aboriginal Procurement Pilot Working Group primary goals include identifying potential Aboriginal business partners, recommending MTO projects which best suit the pilot project’s parameters, analyzing and undergoing effective implementation models,andevaluatingthesuccessofeach completed project.
Reflecting on working group, and its influence on the pilot project, Bennett says, “One of the objectives of the Aboriginal Procurement Pilot Program is to promote partnerships between Aboriginal and non-Aboriginal businesses. The pilot accommodates non-Aboriginal businesses submitting joint-venture proposals with Aboriginal suppliers. This can lead to successful business partnerships beyond government
procurement. Industry associations, such as the Ontario Road Builders Association, can play an important role in connecting Aboriginal businesses with road construction companies. These partnerships help encourage stronger relationships between industry and Aboriginal communities, as well as employment, training, and business development opportunities for Aboriginal businesses and communities.”
To date, Bennett notes the program has indeed been successful in assisting Aboriginal businesses to develop resources, capacity, and skills to become successful in future business venture and government procurement opportunities, reporting, “The Ministry of Aboriginal Affairs, Transportation, Northern Development and Mines, and Natural Resources are among the ministries that have purchased goods and services from Aboriginal suppliers. These include such items as publishing promotional material related to the government’s Aboriginal economic development supports, tree clearing and planting services in southwestern Ontario, subject matter experts for Aboriginal awareness training, cleanup work related to the Mid-Canada Line Radar in the Far North, and Aboriginal community consultation in northwestern Ontario.”
Other jobs have also been included in the pilot project’s portfolio. These include a clearing contract on Highway 627 in Northwestern Ontario, which began in March 2013 and is now complete.
Bennett says the ministry will continue to pursue eligible candidates for the program up until 2014 when the pilot project comes to an end, adding, “Going forward, the intent is to develop and build capacity in Aboriginal communities/businesses to open up new economic opportunities for these communities.”
More information on this project and the Aboriginal Procurement Pilot can be found by emailing aboriginalbusiness@ontario.ca. ORBA members who are interested in exploring a First Nations partnership are also encouraged to contact Executive Director Geoff Wilkinson at geoff@orba.org for Ministry contact information.
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The Art of Pre-Qualification
by Stephen Bauld
In my opinion the future for quality work that government owners demand leads to the road through the pre-qualification process.
Most purchasing authorities in Canada have a formal procedure for pre-qualifying bidders, at least for contracts of a given type or amount. Typically, the qualification process will be both forward and backward looking, and it seeks to identify a list of potential suppliers who meet the criteria to be on the purchasing authority’s vendor or supplier list. The overall purpose of the pre-qualification process is to ensure that there is a reasonable prospect that each bidder who participates in a tender will have the demonstrated ability (i.e., expertise, capitalization and resources) to perform the final contract in a satisfactory manner. Pre-qualification is not used for all types of contracts. However, as a general rule some form of pre-qualification is likely where:
- the contract is considered high risk, for instance, the contract provides for a type of supply that could result in a substantial cost, a gap in national security, political embarrassment or similar misfortune to the contracting authority if the contract is not performed in a satisfactory manner;
- there is a need to minimize monitoring costs associated with the contract, with respect to the quality of work, the timeliness of delivery or potential cost overrun;
- the goods or services to be supplied must meet some defined standard (e.g., safety or environmental) or level of performance; or
- the performance of the contract involves complex multifaceted activity, highly specialized expertise, equipment, materials or financial requirements.
The foregoing requirements are not, of course, exhaustive nor mutually exclusive.
Where conducted on a forward-looking basis, the prequalification process essentially takes the form of request for information from potential suppliers. They will be required to demonstrate that they have an existing potential to perform either a specific contract or contracts of a particular type, by giving evidence of their:
- experience on similar work;
- staff training, experience and other expertise;
- previous levels of customer satisfaction in relation to similar work (e.g., by way of letters of reference);
- third party verification of the performance characteristics of their products;
- health, safety or similar policies;
- staff training; and
- financial strength
In the case of a previous supplier, documented instances of poor performance or non-performance or prior contracts will be used to determine eligibility to participate in future tender bids. On the basis of this information, staff within the contracting authority will be called upon to evaluate and rank the submissions and recommend a short list of acceptable bidders, who will be entitled to participate in any subsequent sealed bid tender competition. Where a contract is pre-qualified, the municipality is essentially limited to a consideration of those bidders who have been approved through the pre-qualification process.
Where the proposed contract is for some reason likely to be considered out of the usual, a further advantage of the pre-qualification procedure is that it allows the contracting authority to test the market and determine whether there is sufficient market interest in bidding for a possible contract to justify the expense and delay inherent in the formal tender process. Where a bid qualification procedure applies, a contacting authority may reject a bid received from an unqualified bidder.
The pre-qualification process is distinct from any requirement under law that contractors carrying out any particular kind of work hold some specified licence. There is no general principle that bids will only be accepted from a potential contractor who licensed to carry out the work in question, for it may very well be that a necessary licence can be obtained after the contract is awarded but before the work is performed. Accordingly, an unsuccessful bidder has no right to complain that the tender was awarded to an unlicensed bidder.
Generally, pre-qualification procedures involve the provision of background information relating to potential suppliers, so that suitable short-list of suppliers can be identified, either for direct negotiation or for closed competition. The purposes of pre-qualification are:
- to ensure that each bidder can demonstrate they have the ability to provide the necessary expertise and resources to satisfactorily complete the work required:
- to build and to determine the extent of supplier interest; and
- to determine whether there are enough suppliers to justify a full Request for Proposal or Request for Tender competition.
In the typical case, potential suppliers will be asked to provide the information relating to the following:
- years in business
- experience in similar projects
- general range of business covered
- key personnel, their training and experience
- financial strength of the business
- general reputation of the business (e.g., references)
- location of operations
- size of operations
- diversity of operations
- public sector experience
On occasion where there is some security aspect to the eventual contract that is under consideration, the pre-qualification procedure will also include a security check.
Where a pre-qualification procedure is put into place, it is necessary to estimate the optimal number of bidders to invite to participate in the bid, in order to secure a fully competitive range of bids. Generally, the competition for pre-qualification should be as open as possible. The purchasing department should raise concerns where the ordering department proposes to pre-qualify only organizations with which it has previously carried on business. The goal of the process is to identify a number of suppliers who are clearly capable of carrying out a project on behalf of the municipality. Once the list has been identified, a tender or RFP competition for the contract can be carried out using the short-listed suppliers as potential candidates. If too many are invited, some bidders may be discouraged from participation, as they may not see their chances of getting the contact as worth the effort of putting together a submission.
Pre-qualification may be employed for a wide range of reasons. Such a procedure may be attractive, for instance, where there are special security concerns, related to particular types of work (e.g., for work to be performed within the secure area of a police station), or where demonstrated capability to carry out some highly specialized form of work is a concern. The
pre-qualification procedure ensures that all persons who bid will be able to carry out the proposed work. In this way needless inconvenience to suppliers and municipal administration can be avoided, in considering bids from suppliers who will not satisfy the underlying concern. Alternatively, a restricted contract process may be a closed process, in which there is no element of open contracting. For instance, the widespread public practice of requesting three supplier quotes when awarding low dollar contracts is an example of a closed supplier list approach.
Moving forward we are going to see more government documents that require only pre-qualified contractors. We need to set the bar high enough to get value for money, yet give all the contractors that are capable of doing the work a fair chance to bid. The time it takes to pre-qualify contractors is well worth the effort, knowing that only qualified contractors are working on your projects will save both time and money for the owners.
Stephen W. Bauld is the President and Chief Executive Officer of Purchasing Consultants International. ORBA has negotiated a special member discount with Purchasing Consultants International, which includes a free initial 15-30 minute consultation.
What started as a routine weekend job for Region of Waterloo workers has prompted a high-profile labour issue that could conceivably restrict the bidding potential for construction companies across the region.
In 2012, two outdoor maintenance workers with the Region of Waterloo applied for certification with the Carpenters Union after being called upon to work over a Saturday on a plastic shed for the municipality. The applications soon prompted a debate as to whether the Region of Waterloo can be deemed a construction employer − a designation that would make the region an automatic signatory to the province-wide collective agreement covering industrial, commercial and institutional work.
“Within many of those agreements are very restrictive contracting-out clauses that require the employer to exclusively tender projects with contractors and workers who are organized by that particular union. In the case of carpentry, because the trade has a large scope, you essentially create a labour monopoly within that municipality,” explains Julie Garner, owner of Garner Solutions, a government relations and public affairs company currently working with ORBA and other construction stakeholders to seek a positive resolution to this issue for the industry.
According to Garner, the implications for ORBA members could be severe if the Region of Waterloo cannot prevent the certifications from approval. “Every situation is unique in terms of the parameters of the tendering restrictions, but depending on what happens with this case, ORBA contractors could be shut out from participating in major transportation infrastructure projects, although it’s debatable whether that would extend to roads. Essentially, ORBA members participate on a wide variety of things and there wouldn’t be fair and open tendering throughout the municipality on all projects.”
Overall, she adds, “There will be some huge implications. We’ve got a lot of big projects going on in the Regional Municipality of Waterloo over the next couple years, and ORBA members want to be able to participate in all aspects of them.”
In response to the certification applications filings in December 2012, the Region of Waterloo responded within the timelines to contest the applications on multiple fronts,
by Matthew Bradford
with one of their defences being that the region does not qualify as a construction employer. The issue went to case management in February and is set to proceed to multiple hearings this June.
“From what we’ve seen, the Region of Waterloo is fighting the certification application with all tools available,” reports Garner. “There is significant debate amongst the local community as to whether or not it will be able to be successful on any of the grounds that they’ve stated— especially the non-construction employer provision. One of the reasons for this is because the way that it’s defined within the Labour Relations Act, if the municipality has taken compensation for any type of improvement to any one of its assets, then even if it’s a one-time thing they can be deemed to be a construction employer.”
This particular issue is at the mercy of the Ontario Labour Relations Board (OLRB). However, ORBA has been active in supporting legislative initiatives that could prevent similar issues that might arise if this case sets a precedent for unions. Specifically, ORBA showed its support this May when Kitchener-Conestoga MPP Michael Harris introduced private members legislation that would ensure municipalities and school boards throughout Ontario can openly and fairly tender projects to qualified bidders no matter their union affiliation.
“Depending on the trajectory of Bill 73 and the support for the proposed legislation, it may influence the events in the Region of Waterloo before they are settled by the OLRB,” says Garner, noting, “Regardless of timing, the Bill addresses how transition would be handled for municipalities and school boards that are currently certified as construction employers.”
With the issue set to move into its summer hearings, Garner urges all stakeholders to keep their eyes on the developments in Waterloo and play an active role in raising attention to the issue and for changes at the highest levels of government. “I know ORBA has been doing a lot to raise awareness among municipalities and other groups that could potentially be targeted, which is important. This issue is about cost and fairness and it is extremely important. All stakeholders need to be advocating for changes at a provincial level to prevent this type of thing in the first place.”
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Contractor Profile: McLean Taylor
by Christopher Grant
There comes a time in the life of any family-owned business when the business’ growth makes it a target for acquisition by larger rivals or ripe for a public sale. Most families sell. Most.
Not so for those families behind McLean Taylor Construction Limited of St. Marys, Ontario. McLean Taylor is still firmly controlled by a third generation of Taylors and McLeans. Scott Taylor is the current president, and other Taylors and McLeans are still partners in the company. Furthermore, the company is widely populated by other members of the two families, and, of those employees who aren’t Taylors or McLeans, most are local hires, neighbours or people who grew up with them.
For most family businesses, generational transition can signal a downfall. Not so at McLean Taylor.
The transition from one generation to the next has proven to be a benefit, explains Taylor. “We were all raised in construction.”
“At 42 years old, three of us are the oldest guys managing the company,” Taylor continues. “We often talk about how us ‘kids’ somehow just happen to
run a rather large construction company … and do a pretty good job.”
Their greatest strength? “The quality of our site superintendents,” says Taylor. “We also believe one of our strongest assets is our rural-based upbringing.”
Why? In a word – familiarity, and the sense of community. Residents of small communities share both work and recreational time together.
“We often say the international headquarters are in St. Marys, Ontario,” says Taylor. “St. Marys is a small town of 6,500 people, surrounded mainly by farms. Many of our employees grew up farming and some of them still farm on the side. The hard work ethic required for farming has permeated over to construction.
“Because we are a small town, anytime you drive around the town you will drive past our office, our shop, and (there’s) a good chance four or five McLean Taylor pickups.
“Again, because we are in a small town, we not only work together, but our project managers-supersoperators-labourers play on the same hockey teams, go to the same parties
and (their) kids go to the same school. We are not only co-workers, we are friends.”
McLean Taylor was started in the 1950s by founders Lloyd McLean, Eric Taylor and Ernie Foster. They began by pouring barn foundations for local farmers, and early success encouraged them to incorporate in 1960. From there they progressed into building culverts for local townships and this eventually led to constructing small bridges for municipalities and then on to larger bridges, dams and roads for cities and then the province of Ontario.
“In the ORBA world we are known best as McLean Taylor, a structure and barrier wall contractor,” says Taylor. “But this part of our business accounts for only about 40 per cent of our total business interests.”
Most structure oriented companies grew by having to expand their geographic area around the province. “Fortunately,” Taylor says, “our forefathers grew, not by expanding our region, but by diversification. In the mid to late 60s we incorporated a second company, Stone Town Construction Limited, which specializes in water and wastewater treatment plants and industrial buildings.”
In the 80s, Meadowridge Properties was incorporated. Meadowridge develops residential and commercial properties in the St. Marys and Stratford area.
“We’re just finishing selling a 108-lot subdivision and are just preparing to break ground on a new 90-lot piece,” Taylor continues. “In recent years we have partnered in numerous seniors residential complexes.”
Where McLean Taylor excels is in the breadth of knowledge that permeates throughout the organization. “All of our superintendents, estimators and project managers know as much about process pipe, mechanical equipment and instrumentation as they do about
concrete, bridge girders and rebar,” Taylor explains.
Taylor has nothing but compliments for his superintendents.
“First there is their consistency and commitment,” he says. “We recently had two supers retire with 50 years’ service at McLean Taylor, and we currently have four superintendents with over 30 years’ service.
“Because we do so much of our own work, and due to our diversity, our supers require a very diverse set of skills. Where most firms specialize in either highway work or ICI work, we do both.” On one day a superintendent could be pouring a bridge deck and the next day they have to be installing process pipe in an anaerobic digester.
“They know as much about site servicing as they do about stream diversions for culverts. Sometimes it is hard to switch hats; however, we love the variation.
“There is never a dull day.”
McLean Taylor has also expanded into some more specialized areas,
including becoming a major temporary barrier wall subcontractor in the 80s. “We installed turbines in one of the first large scale wind farms in the province, and two years ago we purchased a pile driver and do pile driving and shoring, and we do a fair amount of concrete demolition.”
The province of Ontario called in McLean Taylor after the Walkerton water tragedy. In 2000, an often deadly strain of E. Coli bacteria killed seven residents of the small town and sickened dozens more after the town’s water supply became contaminated
from farm runoff. McLean Taylor was contracted to install the temporary water treatment system.
“Our management team is not huge,” Taylor says. “We do not have a large staff with multiple divisions. We all know what is happening in all facets of the company, from major construction milestones to who had a baby. As a management team we meet four days a week for 45 minutes – Monday, Tuesday and Thursday first thing in the morning, and Friday at the end of the day.
“We believe immensely in the importance of construction associations, including ORBA among others, and not just belonging but volunteering. All managers here are heavily involved in the various associations we belong to. Four of us sit on various boards in our associations.”
Construction work is known for the long hard hours. A couple of years ago, vice-president Paul Taylor suggested because the company works year round that they reduce
their hours and quit work at 4:30 in the afternoon and work a 42 hour work week. The other management thought he was crazy. “That’s not how you work in construction” Scott Taylor says. “But Paul’s theory was guys could be home to cut the grass or play ball and when they came to work the next day they would be refreshed and more productive. We tried it and it worked.”
Taylor believes the highway construction industry is moving toward a design-build delivery model and that
McLean Taylor’s experience in sewage and water construction has given them a leg up on this model. “We penned our first design-build RFQ in 1992,” Taylor says, “(we) have been shortlisted on approximately 30, and been successful on 18.”
Taylor sums up the future. “In recent years we are seeing the consolidation of family-owned construction firms around the province. Last year we saw two of our local close friends and competitors be purchased to national/ international firms. Although it was a shock to us, we understand why it happened. We have talked about the consolidation around the industry and continue to say we are having just way too much fun and, quite frankly, success, to think of selling. We consider McLean Taylor and Stone Town an integral piece of the fabric of our community, and we want to see our children and our employees’ children (have) the chance to work here and continue the tradition.”
The future of McLean Taylor looks as bright as it did several decades ago.
Let us Lead the Way: The 2012/2013 Snow Plow Safety Campaign
The “Let us Lead the Way” campaign is a joint ORBA/MTO initiative funded by ORBA’s Area Maintenance Contractors and the MTO.
The campaign consisted of events/ news releases to earn traditional media, a focus on social media through twitter and facebook accounts, a website, outreach to key partners, articles for industry magazines and an outreach campaign to MPPS and municipal politicians.
The goal of the campaign was simple: prevent injuries and deaths on Ontario roads caused by incidents involving snowplows.
Campaign material went out to MPP’s and the OPP last fall, well in advance of the season’s first snowfall to keep them informed of the campaign and activities we had planned.
Media: events and Coverage
The campaign garnered a significant amount of earned media across Ontario through media events with Ministers, MPPs, OPP and ORBA members. The campaign successfully issued media releases in advance of reports of snow storms which resulted in ORBA spokespeople being on local radio relaying tips on safe driving.
Ottawa – Nov. 16th
The Ontario Minister of Transportation and Minister of Infrastructure, the Honourable Bob Chiarelli, launched the province-wide campaign in Ottawa with ORBA Executive Director Geoff Wilkinson, ORBA President Jim Hurst, City Councillor Mary Ann Wilkinson and the Ontario Provincial Police. The launch event garnered the following media coverage:
• CFRA
• CBC TV (1.5 minute story at the 20:36 mark)/Radio-Canada
• CBC.ca
• Ottawa Sun
• Daily Commercial News
• Canadian Insurance Broker
• Canadian Underwriter
Thunder Bay – Nov. 22nd
As part of our regional campaign, we issued a media release and pitched local media on the Thunder Bay launch of the campaign. We worked the local OPP, who held a media availability at 2 p.m. in their Thunder Bay offices. Timing also worked well as the region was expecting five to 10 centimetres of snow overnight. The Thunder Bay launch garnered the following media coverage:
• CBC Radio
• CBC TV
• 105.3 the Giant Radio
• CKPR TV
• The Thunder Bay Chronicle
North Bay – Nov. 23nd
Similar to our Thunder Bay strategy, we issued a local media release and pitched media outlets in the North Bay region. We worked with the OPP to set up spokespeople for the day. The snow that had fallen the evening before also increased media interest. The North Bay launch garnered the following media coverage:
• The North Bay Nugget
• Moose FM 106
• CKAT 600 AM Radio s.
• Cogeco North Bay
• CBC Radio
Kingston – Dec. 3rd Photo Opportunity
Local ORBA member Dave Read, Cruickshank Group, hosted a photo
opportunity at their Kingston offices. Minister John Gerretsen, who is the local MPP for Kingston, ORBA Executive Director Geoff Wilkinson and OPP attended the photo opportunity. The Kingston event garnered the following media coverage:
• CKWX TV
• Kingston Whig-Standard
• EMC
• K Rock 105.7
• KIX Fly FM 93.5
Sudbury – Dec. 3rd Media release
We pitched a Sudbury focused media release with the OPP and local ORBA representative as media spokespeople. The Sudbury launch garnered the following media coverage:
• CBC Radio-Canada
• CBC Radio
• CTV Northern Ontario
• KICX 91.7
• Northern Life
Guelph – Dec. 6th Media Release
We pitched a Guelph focused media release. The local OPP were made available to media as spokespeople. The Guelph launch, while a small media market, garnered the following coverage:
• Guelph Tribune
• Guelph Mercury
• CJOY Radio
London – Dec. 13th Media Release
We pitched a London focused media release. The local OPP were made available to media as spokespeople. The London launch garnered the following coverage:
• CTV News London
• CJBK Radio
• CFPL Radio
Grand Bend & Watford
– Dec. 18th Photo Opportunity
Monte McNaughton, MPP for
Lambton-Kent-Middlesex is very supportive of the campaign. We worked with his office, the local OPP spokesperson and local ORBA members to arrange photo opportunities in the communities of Grand Bend and Watford. The media response was excellent considering the size of the media markets, with McNaughton’s office reporting two to three radio hits and the three print articles.
Feb. 7th -Toronto News release
• 680 News - interviewed Geoff Wilkinson
• CFRB Radio - interviewed Geoff Wilkinson
• CP 24 - in studio TV interview with Geoff Wilkinson
• CBC Radio - snowplow ride-along with a Steed and Evans crew
• Oakville Beaver - ran news release
• InsideHalton.com - ran news release
The media advisory was also picked up by the online edition of the Wall Street Journal and I4U news.
Caa
CAA South Central included an article on save winter driving referencing ORBA’s snow plow safety campaign in their electronic magazine that went out to approximately 29,000 of their members.
Social Media
ORBA was actively updating information on the campaign through social media
Twitter: @snowplowsafety
Facebook: Snow Plow Safety
Partners:
- MTO
- The Weather Network
- 407ETR
- Insurance Bureau of Canada
- CAA
- Safety Council
Political education
The Snowplow Safety tips poster was distributed by MTO to every MPP as part of their winter driving campaign. After the Nov. 16 launch an MPP kit was sent electronically by ORBA to each MPP. That kit was adjusted and also distributed to municipal governments. This resulted in several tweets and calls for further information from politicians.
Campaign’s Success
So was the campaign a success? Based on the collaborative partnerships developed, the excellent media coverage and the public outreach the “Let us Lead the Way” campaign was a success. At the end of the season, if we have managed to prevent a single serious injury or fatal accident the campaign was a success.
“Although we can’t say with 100 per cent certainty that we have prevented any accidents involving snow plows, we do know that the message got out to the public.”
Could we have saved lives?
“Definitely,” says Geoff Wilkinson, ORBA Executive Director. “As an industry association, we helped get Ontario motorists and snow plow operators home safely this past winter. We’ve done what we set out to do and will build on our success next winter.”
Look for the ORBA/MTO safe winter driving campaign launch in early fall 2013.
Associate Member Profile: Amaco Construction Engineering
by Christopher Grant
Amaco Construction Equipment celebrates 30 years of service to heavy construction in Ontario this year. The Mississauga heavy-equipment distributor and ORBA associate member has been privately owned for the entire three decades of its existence and has transitioned into the control of a second generation.
Founded in 1983, Amaco represents a select group of specialized manufacturers. Their customers come from such sectors as municipal, road building, paving, aggregate, industrial and more — and they pride themselves on delivering proven solutions to these industries, helping to improve productivity and lower operating costs.
After delivery of any equipment, their highly experienced and factory-trained sales, parts and service personnel are ready to assist customers as needed.
“The company was started in 1983 by my father, James,” explains current Amaco president Jeff MacDonald.
“The Gradall Telescopic Boom excavator was his first account. At the time, he partnered with Brian Ambler and Don Courtney, who operated a Gradall rental company in Toronto to assist with servicing capabilities. My Father had sold the first Gradall in Ontario, and we have had a long and successful history with them.”
Then in 1986, Amaco purchased the assets of Canameque Equipment from American Hoist, and this brought the
Pioneer account (now Kolberg-Pioneer Inc.), a crushing and screening equipment company servicing the aggregate processing industry. This acquisition created tremendous growth to the company at that time.
In the early 90s, with the economic downturn, the company focused on core products and manufacturers that focused on specific industries and desired distribution as their path to market. “Concentrating on our customers and niche products to fit those customers enabled Amaco to grow and succeed in a difficult time.”
The company’s founder, James, was the driving force behind Amaco until the late 90s when his son Jeff began to take more of an overall role in the business. Together they discussed and explored avenues for Amaco’s growth and how best to position themselves in the Ontario equipment distribution industry.
“My Father is 88 and still provides sound advice to me for the future,” continues MacDonald. “Late 2012 saw us welcome Jamie Armstrong as our vice-president, who, amongst other duties, is looking after our parts and service growth plans.
“Amaco is a niche-product dealer,” continues MacDonald. “We are always on the lookout for products and services that desire distribution from the manufacturer, and fit into the municipal, aggregate, paving and heavy industry sectors we primarily service.”
Amaco is in the process of expanding their parts and service departments to expand their field presence for parts and service sales, both with the accounts they represent now and new parts accounts to drive additional revenue from their customer base.
“Being a supplier of niche products, we tend not to see huge fluctuations in business,” adds MacDonald. “However, we continue to see steady growth and are planning to ensure growth continues in order to support our customers.”
The decision to concentrate on niche market products was made very early on. This was done to foster stable relationships with manufacturers that were at the top of their field in the markets they serve, which allowed Amaco to concentrate on marketing their products to their growing list of customers.
“We want to try and be the top choice for the product we sell and not get ‘lost’ with what might be considered lesser known manufacturers just to have a well-rounded product offering.
“The expansion and ramping up of field personnel for our parts and service expansion is our priority over the next year.”
Amaco’s corporate goals are simple, insists MacDonald. “The stable and continued growth of the company has always driven our decisions. To ensure we are viable as a business, not only for our valued employees and their families, but also for our customers who rely on us to support their businesses and goals.”
MacDonald’s personal involvement with the company has been nearly his entire career.
“I joined in 1987 after working for several years as a structural civil engineer after graduating from engineering. Starting in sales with a small territory, I learned the business of selling and support, and found tremendous satisfaction in meeting and assisting people with their businesses.”
“Along the way I’ve met a lot of people and can call many of them friendsit’s been a great career, but one that always needs constant attention and tweaking to meet the ever changing demands,” MacDonald explains. “Now, as president and owner, I strive to balance the needs of our employ-
“My father is 88 and still provides sound advice to me for the future.”
— Jeff MacDonald
“The biggest thing I can do is recognize the changes that are occurring in general and adapt to succeed,” says MacDonald, “but ultimately it is our people who makes things happen.
“We have a great team at Amaco and I am proud of their work, and we work hard to improve whenever and wherever possible.”
ees, manufacturers and customers to chart a path for continued and stable growth for the future and beyond.”
Jeff MacDonald has been president for ... about a decade.
“I think it was in 2003 or so,” he grins. “It sounds funny that I don’t really know, but in reality it was more of a process than a set transition. I gradually assumed more duties, at the same time my father stepped away from the day-to-day running of the business.
MacDonald considers every employee an ambassador of the company and what they do, and as such Amaco is moving to ensure their communication and record keeping systems are accurate to ensure quick and capable customer support.
“The long-term continuance of Amaco is key,” summarizes MacDonald. “With our parts and service expansion plans, we are looking to improve our visibility even further in the markets we serve. In the past few years we have expanded our rental fleets to react to business opportunities, and we will continue to explore opportunities where our and our customer goals align.”
Paul McCarney
by Matthew Bradford
Named CCA Community Leader Award Winner
Greenbelt Construction president and general manager Paul McCarney took centre stage at the 2012 Canadian Construction Association (CCA) awards gala to accept the honorific CCA Community Leader Award.
The trophy is handed out annually to CCA member firms, partner associations or employees of CCA member firms who have given significantly their time, skills and resources to charitable and community pursuits. McCarney was selected as this year’s winner for his dedication to numerous non-profit causes. These include his generous donations to the Ottawa Hospital Foundation; work with the St. Patrick’s Home of Ottawa Foundation; and his involvement in the Royal Ottawa Hospital’s Do it for Daron (DIFD) campaign, a youth-oriented charitable organization committed to raising awareness for mental health issues.
Frank Rizzardo, CCA’s chair of its board of directors, assumed the podium at the CCA Awards to introduce McCarney’s award, saying, “For his infectious desire to do good in his community, CCA is pleased to recognize Paul McCarney as the winner of the CCA Community Leader Award.”
CCA also recognized McCarney’s extensive work with Ottawa’s Christie Lake Kids Camp, a summer camp for children from broken homes and impoverished families. What started as a simple desire to upgrade the camp’s cabins quickly turned into a 12-week project that saw McCarney take a leading role in raising funds and support for a quarter-million dollar camp-wide renovation. With help from volunteers and industry partners, the camp was enhanced with renovated cabins, new shower facilities, a new roof for the main dining hall, a healthcare facility makeover and safety improvements for the recreation facilities. McCarney was also instrumental in acquiring donations for the purchase of mountain bikes and helmets and the construction of a new laundry facility.
“This all started off as a very small venture at the camp with my friends from the YPO—the Young Presidents Organization—Ottawa Chapter, and it just snowballed from there. With a whole lot of generosity from so many firms, we left behind a real difference. So thank you very much,” said McCarney during his acceptance speech.
“I have had the privilege of meeting hundreds of supporters who want to contribute to our cause. However, I have never met one person so committed and passionate about the contributions they are making back into the communities where they work, live and play,” said Carole Gagné Ince, executive director of the Christie Lake Kids, in a statement aired during McCarney’s introduction.
McCarney accepted the award on behalf of the Christie Lake Kids and DIFD, noting he intends to use the award to secure major gifts for these and other projects. He also thanked CCA for selecting him, and John DeVries, president of the Ottawa Construction Association and his staff for encouraging board members like him to get involved in community projects.
Addressing the audience he said, “I’d like to acknowledge everyone here from across the country that gets involved in their own communities. I’m personally thrilled to be part of the construction community and do what I can do. When you take on major projects and bring in so many other firms, and many times for many causes it’s the same firms stepping up, we all deserve applause for being in this very generous sector.”
Paul McCarney joins other notable industry philanthropists including 2011’s CCA Community Leader Award winner Bob Walker, vice-president of Ledcor Construction, and 2010 winner Robert Merkley, president and CEO of Merkley Supply Ltd.
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Miller Paving Receives ORBA’s Green Award
by Matthew Bradford
Miller Paving Limited has been recognized for its environment stewardship by receiving ORBA’s 2013 Green Leadership and Sustainability Award.
The Markham-based company received the award for its development and implementation of Reclaimed Asphalt Pavement (RAP) materials, an initiative designed by Miller to reduce its use of non-renewable recourses, lower its environmental impact and enhance the company’s overall environmental sustainability.
“Miller clearly demonstrated its forward thinking and innovative approaches to implementing environmentally sustainable construction practices and earned the recognition for its corporate commitment to pursuing innovations that contribute to responsible environmental management,” said ORBA President John Blake.
field Trials
Three separate RAP products were created for a series of field trials. These included cold recycled (CR) pavement, used in a 2012 North Bay project; RAP graded seal, applied to a 2.2 km stretch of aggregate base roadway on Concession 8 in King Township; and RAP slurry seal, developed within Miller for ongoing research and testing in the 2013 season.
All three RAP processes utilized specially engineered emulsion. For the CR pavement, Miller utilized RPC-25 emulsion which restored the balance of total asphalt cement (AC) required in the mix and consisted of a special oil fraction used to rejuvenate the aged asphalt cement from the RAP material. For the graded seal, Miller applied a special polymer modified emulsion to facilitate the bonding of RAP aggregates utilizing unique emulsion chemistry. Lastly, the RAP slurry also used a specially engineered emulsion to create an enhanced slurry surfacing system.
“The CR mix, graded and slurry seal mixes all reduce the impact on the environment by reducing the amount of non-renewable resources consumed,” explained Trevor Moore, Corporate Technical Director of Miller. “Fuel savings are attained in all three processes, resulting in a lower overall carbon footprint.”
environmental impact
Energy savings and environmental sustainability are among the key benefits recorded by Miller during its RAP field tests. Specifically, Moore noted that the CR mix provides approximately 12 per cent energy savings per square metre whereas both the RAP graded seal and RAP slurry seal generated a one to two per cent energy savings per square
metre, reduced haulage requirements and significantly reduced its reliance on natural resources.
“Replacing virgin aggregates with RAP in paving mixes provides a net benefit in all three categories of sustainability,” explained Moore, adding, “utilizing RAP allows for the elimination of virgin aggregates, which dissolves the need to extract non-renewable aggregate resources and reduces new asphalt cement requirements, allowing for a lower impact on the physical environment and a reduced carbon footprint.”
“Moving forward, Miller Paving Limited will research, test and develop pavement processes utilizing increased RAP proportions to perfect these construction techniques and enhance the environmental and economic benefits,” he added.
industry accolades
Miller Paving’s RAP innovation has been turning heads within the industry. In addition to receiving accolades from ORBA, the company has also received words of support from its partners at the Ontario Good Roads Association (OGRA).
In a statement following the award decision, ORGA President Joanne Vanderheyden said, “Municipalities are consistently striving to improve their environmental stewardship and reduce their carbon footprint. Their work with the transportation infrastructure builders in the province, in this case with Miller Paving, to improve sustainability practices while also improving municipal infrastructure is a critical factor to ensuring the long-term environmental health and economic viability of our province.”
The Green Leadership and Sustainability Award was established by ORBA in partnership with the Ministry of Transportation and the ORGA to spotlight environment leadership within the industry. Previous winners include The Miller Group and Bot Construction (2012), and Dufferin Concrete, a division of Holcim Canada Inc. (2011).
“This is an important industry award that recognizes leaders in the construction industry for their environmental stewardship and encourages innovations to reduce environmental impacts of transportation infrastructure building,” said the Honourable Glen Murray, Minister of Transportation and Minister of Infrastructure in a statement to press. “I would like to congratulate Miller Paving for its work to develop innovative products that can reduce reliance on virgin aggregate, reduce energy consumption and increase uses for recycled materials in road construction.”
New ORBA Members
SuPeRROaDS
Step Change in Safety is the UK based partnership with the remit to make the UK the safest Oil and Gas Exploration and Production province in the world. Founded in 1997 by the Oil and Gas industry trade associations, their aim was to reduce all the UK offshore Oil and Gas industry injury rates by 50 per cent.
Their goal is to achieve this vision through cooperation, collaboration, sharing and adopting of best practices and learnings. Their website is a key resource in enabling that sharing and, in the spirit of co-operation, they invite all to use the website to share and contribute regardless of industry or country. Anyone may access all parts of the site and read and download resources, but you will need to register to contribute news items or to take part in the discussion forums.
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Superroads Technologies SA was established in 2009. Jointly, with their partners, they apply innovative technologies in road construction.
Skilled engineers of the company ensure high quality of works of any degree of complexity, which are carried out by contracting the organization. Presently, the company is extensively introducing technologies of soil stabilization (strengthening) and cold-acid recovery of asphaltic concrete pavements.
Soil stabilization is a revolutionary new approach to laying firm, water- and frostresistant bases for various construction projects, which allows reducing cost of works by using local building materials. www.superroads.ch
Industry Profile: Doug Duke, OHMPA Executive Director
by Matthew Bradford
The Ontario Hot Mix Producers Association (OHMPA) has a new executive director at its helm. This January, Doug Duke assumed the lead position following the departure of Michael O’Connor, who retired from the role in December 2012 after 15 years in the seat.
Duke brings a wealth of association management experience to his new role. A former print media specialist, Duke comes to OHMPA after serving for seven years as the executive officer of the Hamilton-Halton Home Builders’ Association (HHHBA). During this time, he spent two years as chair of the Canadian Home Builder’s Association Executive Officer’s Council, and five years as director and chair of the Heritage Green Community Trust.
Reflecting on his career in association management, Duke admits his trajectory through the industry has been unconventional, noting, “I kind of backed into (it), really. I was working in the print media when I was encouraged to consider changing careers to association management in 2004. That’s when I took over the Hamilton-Halton Homebuilders Association. It was my first foray into association management and that’s what led me here.”
Duke says he was motivated to pursue the executive director position at OHMPA after learning of the association and its reputation within the industry. One meeting later, he was convinced it was the right move. “I made the decision because of the people. I had done all my due diligence during the executive search, but coming in and actually meeting the guys on the board was what sealed the deal for me.”
Since taking over for O’Connor, Duke has hit the ground running on numerous association and industry initiatives. High on his agenda has been enhancing OHMPA’s presence within the industry and building a more visible brand for the association as a whole.
“OHMPA has always been a very technical organization. That hasn’t changed. It still is, and it’s still very important to our industry and our members, but there’s a sense that we need to be more proactive on the marketing, branding
and advocacy side to ensure that people understand the value of the product and the work that goes into insuring it’s the best possible construction material, especially from a road building perspective,” he explains.
Duke adds OHMPA must also continue working with the MTO in communicating the ever-evolving issues surrounding performance specs and what they mean to OHMPA’s members, saying, “Performance specs are changing and the producers are being called upon to up their game. We have to ensure everyone understands what’s changing from a spec perspective, why it’s changing, and what it’s going to mean for the industry.”
When all is said and done, Duke insists his main goal is to increase OHMPA’s influence among the major players and decision makers, adding, “We have to be at the table. If you’re not at the table, then decisions are going to be made without your input, and as an industry you can’t have that.”
As for the association itself, Duke is equally committed to building OHMPA’s membership and bringing greater value to existing members through better communications and programs. Already, he says, the addition of a communication director in 2012, and the ongoing efforts of OHMPA’s membership committee, have garnered great results. Nonetheless, Duke looks forward to building on the association’s momentum, offering, “I like to think that an association’s key responsibility is to communicate information to its members. OHMPA has done a great job of that over the past several years, and I think it’s going to get even better going forward because we’ve invested in the people to ensure it gets done, and we’ve invested in the brand power to give OHMPA the right messages to turn around and deliver.”
Adding to Duke’s enthusiasm is the support he’s received from the staff at OHMPA’s head office. Speaking to his new colleagues, Duke notes, “If there’s one thing I can say without hesitation it’s that the team at OHMPA is just great. They bring a lot to the table and I’m excited to move forward with them.”
Engaging the Future Workforce through OCCCI
by Matthew Bradford
It’s been a busy run for the Ontario Civil Construction Careers Institute (OCCCI). Since opening its doors in 2009, the Mississauga-based centre has reached out to students across Ontario in a bid to build interest in the civil construction industry among Canada’s youth. The institute’s efforts, led by Jessica Steffler, director of career promotions, have not only sparked an awareness in the trades among up-and-coming industry leaders, but have played an active role in connecting future talent to employers, thereby creating a win-win for everyone involved.
In its four years of operation, Jessica Steffler reports the OCCCI has made over 1,100 presentations to over 430 schools, as well as attended 85 tradeshows and 25 conferences. In 2013 alone − for the reporting period of Jan. 1, 2013 to April 30 − Steffler oversaw 170 presentations in 58 high schools, reaching over 2,300 students. On top of this, OCCCI has been active in numerous industry tradeshows and conferences.
“The OCCCI has made more contact with students, and we’ve been able to get involved with more tradeshows, events, conferences and presentations,” Steffler reports. “These presentations are vital because most students are not aware of the career opportunities that are available in the construction industry and have a negative perception of the industry.”
At time of print, Steffler is preparing to embark on the OCCCI’s first Northern Ontario tour from May 27th to June 6th, with plans to stop along Thunder Bay, Sioux Lookout, Dryden, Kenora and other northern hotspots. Speaking to ORBA prior to the trip she noted, “We do have local support from contractors to come out to the presentations, but this is the first time we have been north of Thunder Bay. The schools have ensured us they’ll have large groups of students to speak to, and since the aboriginal communities (are) one of our priorities, I think this will be great.”
OCCCI’s online presence has also grown. Its website, www. occci.ca, receives 500 hits in an average month and offers a wealth of information pertaining to industry opportunities, support programs, potential wages, and construction data. In addition, Steffler says OCCCI’s newly launched Facebook page is becoming a popular site for students seeking information following an OCCCI event, saying, “I receive many emails from students after a presentation asking for more information and we just set up the Facebook page this year, which is just starting to be used by youth.”
Currently, Steffler is working with Ontario Youth Apprenticeship (OYAP) co-ordinators to populate the website with “success stories” from participating students.
On the other side of the talent acquisition equation, the OCCCI continues to forge relationships with industry partners, on top of the 17 construction associations that founded and continue to support the institute. For example, this spring the OCCCI partnered with Conestoga Heavy Construction Association for a construction day, an event designed to get students up close and person with construction sites in Civil Construction. A similar event with the Durham Heavy Construction Association is also planned for the fall.
“Each local construction association now has an education representative who is participating in running their own local events,” she explains. “Ultimately, we want all local associations taking part in local events and outreach to youth.”
Looking ahead, Steffler reports the OCCCI is working on designing classroom activities focused on the civil construction industry. The institute also aims to roll out a brand new co-operative program by 2014 and engage colleges and schools to create a series of parent nights to further teach students about the benefits of pursuing a career in the trades.
Speaking to OCCCI’s game plan on the whole, she adds: “Students are not currently exposed to the civil construction industry as part of the high school curriculum, so the presentations expose students to our industry. More importantly, by 2020 the expected labour shortage will be 120,000. By completing presentations to youth we can help to lessen the expected shortage.”
The quarterly publication of the Ontario Road Builders’ Association
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