Issuu

corners: legal ■ workplace, health & safety ■ Insurance ■ Environment

spring 2007

Providing Greater Value to Construction Project Design & Delivery

P3 teamwork builds

a caring environment Construction outlook Overcoming staffing challenges World view extends horizons

Supplementary Focus on

Energy Efficiency

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º Providing Greater Value to Construction Project Design & Delivery

Contents 8 News

Environmental assessment changes urged by municipal group • Survey finds most Canadians oppose development • CCA applauds federal infrastructure funding, not priorities • Construction industry honours national award recipients • Program aims to get Toronto commercial buildings saving electricity • Montréal architect earns gold from RAIC • World sustainable building conference invites Canadian designs • SBO7Toronto conference in May • Steel construction projects awards set for May 16

19 Construction Outlook

Construction pace predicted to moderate Several organizations predict there will be a moderate increase in overall growth of the construction sector, replacing the heady pace of previous years.

22 Staffing Matters

Overcoming staffing challenges The current personnel shortages in the construction sector in every job category from carpenters to architects present a significant challenge for contractors, developers and other sub-sectors of the industry. A mobile workforce may be the best antidote.

24 Project Profile

P3 teamwork builds a caring environment The Royal Ottawa Mental Health Centre is Canada’s first teaching hospital and research institute to be designed, built, operated and maintained in partnership with the private sector. Its success is a testament to this innovative approach to public infrastructure – and a remarkable commitment that seems to have touched everyone involved in the project.

31 Company Profile

A world view extends design-builder’s horizons From modest beginnings as an A/E firm in 1949, Giffels Design-Build Inc. has become one of the largest design-builders in Canada, designing and managing the construction of industrial, office, retail, residential and institutional facilities worldwide. Its secret? Think global.

33 Energy Efficiency Supplement

Controlling energy costs and consumption A look at trends in energy cost savings developments in the lighting, HVAC and energy management controls sectors.

The Royal Ottawa Mental Health Centre hospital and research centre raises the bar for providing a therapeutic environment with wireless technology and other advanced capabilities in which to deliver mental health in-patient and out-patient services. See page 24. Cover photo courtesy of the Royal Ottawa Mental Health Centre

Editorial 6 Trail blazing is alive and well within Canada’s construction sector

Legal Corner (Sponsored by: Glaholt LLP) 13 Matters to consider in liening work for tenants

Workplace Health & Safety Corner (Sponsored by: TRH Group) 14 Proposed policies cause anxiety

Insurance Corner (Sponsored by: Travelers Guarantee Company of Canada) 16 Does a surety bond bring value to the construction project?

Environment Corner (Sponsored by: Tri-Phase Environmental Inc.) 18 Dealing with subsurface remediation

33 Building Strategies Spring 2007

Editorial

Trail blazing is alive and well within Canada’s construction sector

ravo to the Royal Architectural Institute of Canada (RAIC) who recently chided the federal government’s slash to its green building program. RAIC has gone on record that while with great fanfare the federal government publicly issues announcements about funding energy efficiency, it quietly cuts programs. As evidence, it pointed to a notice posted late last January on the Natural Resources Canada website that all funding for the Commercial Building Incentive Program (CBIP) for New Buildings was fully subscribed. RAIC president Vivian Manasc, FRAIC, called the announcement radical and stunning. “Canada’s architects are disappointed. The built environment accounts for almost half of all greenhouse gas emissions. Considering that architects across Canada have between $40 to $50 billion worth of projects ‘on the boards’, and that buildings last for 50 to 100 years, the government’s lack of real commitment is appalling. We think it is time they got serious and raised rather than eliminated incentives to increasing energy efficiency.” In November 2006, RAIC became part of the 2030 Challenge, a global initiative which calls for all new buildings and major renovations to reduce their fossil-fuel greenhouse gas-emitting energy consumption by 50 per cent immediately, increasing this reduction to 60 per cent in 2010, 70 per cent in 2015, 80 per cent in 2020, 90 per cent in 2025, and finally, that all new buildings be carbon neutral by 2030. Fortunately, RAIC and others are willing to lead where the government is not.

Our cover story in this issue of Building Strategies features the Royal Ottawa Hospital redevelopment project which took the lead as Canada’s first private public-private partnership healthcare facility to be completed. We also have a profile on Giffels Design-Build Inc., another industry leader, as one of the largest design-builders in Canada. One of the challenges facing leaders and followers alike is staffing shortages. We take another look at that in this issue. We also highlight what industry watchers see as the outlook for construction labour and material costs. Welcome Engineering Business readers! This issue of Building Strategies packs an extra punch with the insertion of the MediaEdge Communications publication Engineering Business, a magazine addressing the business interests of the Canadian consulting engineering sector across Canada. We welcome the readers of this sister publication and hope you enjoy your fuller picture into the construction industry. Building Strategies now reaches readers in Central and Atlantic Canada. For Engineering Business’ western readers, the publication is being inserted in the MediaEdge Communications publication Construction Business. As in the past, our focus remains on providing insight into all the key facets of construction project delivery, from start to finish and beyond! We welcome your feedback. Susan Maclean Editor susan@buildingstrategies.ca

Providing Greater Value to Construction Project Design & Delivery

Volume 2 Number 1 • Spring 2007 Publisher

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Building Strategies Spring 2007

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News

By Barbara Carss A proposal to include transit projects in the municipal class environmental assessment (Class EA) process could help reduce the time required to secure approval from the Ministry of the Environment. The Municipal Engineers Association has developed the guidelines to add a transit category to the Class EA process that municipalities now regularly use for road, water and wastewater projects. Many municipal officials and transit advocates urge further reforms, however. They maintain that the EA process is often an unnecessary duplication of studies and public consultation that have already occurred as part of the planning process. Proposed transit projects are currently subject to an individual environmental assessment. Proponents must begin by devising terms of reference to establish what the EA process will examine, and those terms of reference are subject to a public consultation process before the EA itself begins. This approach has the potential to turn an EA into a somewhat open-ended exercise since there are no formal parameters for determining what constitutes a complete study. “There is no authority who could ever say: your list is done,” notes Janet Amos, a professional planner and EA practitioner who has steered numerous municipal infrastructure projects through the approvals process during her 25-year career. “The Class EA approach would allow for a more focused approach on the problem being solved. It’s for projects that are done routinely by municipalities.” The Municipal Engineers Association’s draft amendment was developed with financial support from the Ministry of the Environment, the Cities of Hamilton, Ottawa and Toronto, the Toronto Transit Commission (TTC), and the Regions of Waterloo and York, for formal submission to the Ministry of the Environment for review and approval. The draft amendment for transit projects covers four categories of projects – ranging from simple maintenance related activities to major expansions and/or construction of new facilities – which would require varying levels of public consultation. Many smaller projects such as bus bays, turning lanes, new stations and parking lots, passenger loading areas, transit loops and storage facilities would be exempt. The move to include transit projects in the municipal Class EA arises from recommendations, released in March 2005, by the Minister of the Environment’s advisory panel on ways to improve Ontario’s environmental assessment process. Critics of the current EA process say it is too unwieldy, especially given the Ontario government’s priority for intensification in

Building Strategies Spring 2007

existing urban centres. Both the individual and Class EA processes require proponents to assess possible alternatives to a proposed infrastructure project, and this can become an exercise in which time and resources are spent to study and consult the public about options that are simply not plausible. Yet, failure to follow the required steps of the EA process makes a project vulnerable to challenges that could ultimately stop it.

Including transit projects in a municipal Class EA won’t necessarily alleviate delays since objectors will still be able to request a “bump up” to an individual EA, which then requires the Minister of the Environment to review the matter and decide if the bump up is warranted. As currently proposed, the Class EA amendment for transit would not cover subway projects, but would apply to light rapid transit rail systems and bus rapid transit.

find the current EA “ Some process too unwieldy with

the Ontario government’s priority for intensification in existing urban centres.

Survey finds most Canadians oppose development

In its first national survey of Canadian attitudes toward real estate developments – the big projects such as hospitals, landfills and nuclear power plants – Saint Consulting has found high levels of distrust for local politicians and a fear that their often close relationship with developers makes the planning process unfair. These are just two of the findings contained in the Saint Index, a wide-ranging survey of the attitudes of Canadians on real estate development and land use issues by the Boston, MA-based Saint Consulting Group. The premiere Canadian edition of the Saint Index points to tough times ahead for almost any type of real estate development in Canada. The survey found that three out of four respondents feel their communities are just fine the way they are, or are already overdeveloped. “That number increases to over 80 percent in major cities,” explains Patrick Fox,

president of the Saint Consulting Group. “Eighty percent levels of opposition can spell expensive delays or even cancellation for many types of development.” The Saint Index also revealed that 60 percent of Canadian respondents expressed concern that relationships between elected officials and developers can compromise fairness. That number increases to as much as 70 percent in Calgary. “These findings should send a warning to both politicians and developers,” says Fox. The Saint Index quantifies and tracks the politics of land use, spotlighting who actively opposes and supports real estate-related projects and why. Since 2006, the Saint Consulting Group has commissioned the Saint Index in the U.S. and the U.K. The Canadian Saint Index is based on an independent survey of 1223 Canadians and is accurate to within 3.1 per cent points 19 times out of 20. More details at www.saintconsulting.ca.

Source: Saint Consulting Group

Environmental assessment changes urged by municipal group

News CCA applauds federal infrastructure funding, not priorities

Finance Minister Jim Flaherty’s focus and spending on new infrastructure in the 2007 federal budget presented in March prompted qualified support from the Canadian Construction Association (CCA). The Association also expressed disappointment that previously announced programs such as the Highway and Border Infrastructure Fund from Budget 2006 were being shelved. The budget announcements CCA found of interest included: • a new “Building Canada Fund” which will provide $8.8 billion over seven years to fund core infrastructure projects such as highways, cultural or recreational facilities, or water / sewer projects. • a new national fund for gateways and border crossings with investments of $2.1 billion over seven years. • starting in 2007-08, each province and territory will receive $25 million a year for seven years for infrastructure projects. • an additional $1.25 billion set aside for public-private partnership projects, whereby the federal government will fund 25 per cent of eligible PPP projects. In addition, the budget announced that the capital cost allowance for non-residential buildings will be increased from four to six per cent, and that temporary foreign workers will be able to apply for permanent residency from inside of Canada. “Whereas CCA is very pleased with the focus on infrastructure, we question why the federal government would roll up the Highway and Border Infrastructure Fund announced in budget 2006, especially given that the Prime Minister committed to a stand-alone highway program during the last election campaign,” noted CCA chair Raymond Brunet. “However, with the extension of gas tax funding, the creation of the Building Canada Fund, and the other infrastructure programs announced today, we are confident that Canadians will see noticeable improvements in the state of their physical infrastructure.”

Construction industry honours national award recipients

At its 89th Annual Conference which took place in Puerto Rico in March, the Canadian Construction Association (CCA) presented its national awards honouring excellence in the Canadian construction industry. The CCA General Contractor Award of Excellence was given to Paul Charette, president of Bird Construction Company, based in Etobicoke, ON. Having joined Bird Construction in 1976 as a project manager and since becoming president and CEO and later chairman, Charette helped grow the firm to a $400 million company. He has also chaired the Ontario General Contractors Association, the Toronto Construction Association Advisory Committee, the CCA

Building Strategies Spring 2007

General Contractors Council, and will become CCA chairman in 2008. The CCA Environmental Achievement Award, sponsored by Lafarge Canada Inc., was given to Maple Reinders Constructors Ltd of

John Westeinde, founder of Ottawa-based Westeinde Construction Ltd., was given the CCA Person of the Year Award, sponsored by PCL Constructors Ltd. Westeinde was a founding member of the General Contractors Association of Ottawa, and has chaired the Ottawa Construction Association, Ontario General Contractors Association, a number of CCA Committees, and most recently helped to create the Canadian Construction Innovation Council.

Program aims to get Toronto commercial buildings saving electricity

Bob Noseworthy, Pennecon Limited president

Paul Charette, Bird Construction Company president

Mississauga, ON for their Hamilton centralized compost facility. Built on a former brownfield, the site used European technology to build the facility, including an in-tunnel design with operations all under one roof, which will minimize odors, as well as water and energy use. The CCA Roadbuilders Award of Excellence, sponsored by On-Site Magazine, went to Bob Noseworthy, president of Pennecon Limited of St. John’s, NL. Pennecon’s construction arm has grown to a company of over $200 million with more than 1000 employees. Noseworthy has served as chair of the Newfoundland and Labrador Roadbuilders Association, the CCA Roadbuilders Council, and currently chairs the CCA Gold Seal Committee. The CCA National Safety Award, sponsored by Vipond Inc., was given to Mike Moore and Sons Construction Limited of Sault Ste Marie, ON. The company has a comprehensive, written safety policy and set of beliefs. Company representatives sit on a number of local and provincial safety groups. Monthly safety meetings are held with senior management, and daily and weekly safety meetings are held at jobsites. Extensive training is provided by the company to all employees, and all subcontractors must demonstrate a high commitment to safety. The CCA Community Leader Award, sponsored by Ed. Brunet and Associates inc., was awarded to Leo McArthur, president of Miller Paving Ltd., of Markham, ON, in recognition of his extensive community efforts.

If your commercial building is at least 25,000 square feet, located in the City of Toronto, and is a privately-owned , office, retail store, hotel, industrial building, warehouse, private institution or mixed use property, the Building Owners and Managers Association of Greater Toronto (BOMA Toronto) has a deal you simply can’t pass up, according to Doug Taylor. Taylor is manager of the BOMA Toronto Conservation and Demand Management (CDM) Program officially launched March 27, 2007. The program offers incentives for sustainable, measurable and verifiable energy retrofits that result in on-peak demand reductions and annual energy savings – 150 Megawatts of electricity in Toronto – enough to power over 54,000 homes a year, to be precise. The Ontario Power Authority is BOMA’s partner in the program, and provides the incentive funding. For eligible measures that have the effect of reducing summer on-peak demand, the program pays an incentive of $400 per KW reduction. On-peak is 7 a.m. to 8 a.m., June to September. For measures that may not have much impact on demand but generate energy savings, the program pays $0.05 per kWh of annual savings. Measures will attract an incentive for reduced KW, or saved kWh, but not both. However, owners are encouraged to group two or more individual measures into a project. A project comprising kW measures and kWh measures attracts both types of incentives. The total incentive for a project is capped at 40 per cent of eligible project costs. Taylor reports that the offer is open to both members and non-members of BOMA and expires in March of 2010. Owners and managers contemplating major retrofits with long lead times need to get applications in soon. Eligible measures include, but are not limited to: building automation systems, equipment replacement HVAC, lighting retrofits, building envelope, ground source heat pumps, tenant submetering, chiller

replacement, lighting controls, variable speed drives, deep lake water cooling and lighting redesign. Participants must first complete a BOMA Go Green online building environmental assessment. Go Green is an online building and management environmental audit program, owned by BOMA Canada and administered by BOMA Toronto. Details at www.bomatoronto.org or BOMA CDM hotline at 416-440-0101.

Montréal architect earns gold from RAIC

Mario Saia, FIRAC, has been named the recipient of the The Royal Architectural Institute of Canada (RAIC) Gold Medal for 2007. Mario Saia earned his degree in architecture in his hometown at Université de Montréal in 1963. With a bursary from American Standard (1963) and a Commonwealth Bursary (1964-1965) he continued his studies at the University of Edinburgh in Scotland. He then apprenticed for a year in Copenhagen. He now directs the Montreal architectural firm he co-founded in 1968 – Saia Barbarese Topouzanov architectes. The RAIC notes that the Gold Medal is awarded in recognition of significant contribution to Canadian architecture and is the highest honour the profession of architecture in Canada can bestow. As part of this recognition, Saia will be speaking at 10:45 a.m. Saturday, May 12 during the OAA/RAIC Conference and Festival being held in Toronto May 9-12, 2007. For more details and to register, see www.raic.org.

World sustainable building conference invites Canadian designs

Canadian designers, particularly architects and engineers, commercial developers and building owners are encouraged to submit their projects for consideration to the prestigious Sustainable Building Challenge (SBC) which is to be held in Melbourne, Australia in September 2008. The Challenge, which will form an integral part of the Sixth World Sustainable Building Conference (SB08), is an international co-operative process to develop new performance assessment tools and to highlight innovative sustainable building design techniques. Commercial, institutional and multi-unit residential building types from the public or private sector are all eligible for consideration for this challenge. Projects are required to demonstrate exemplary and balanced sustainable performance objectives as part of the design process. The closing date for Canadian submissions to the Challenge is June 8, 2007. Selection will take place in mid June. The iiSBE Canada SB08 Team will select three building projects from those submitted for full evaluation and presentation at the Melbourne conference. Up to ten additional projects will be selected and presented in poster format. Gord Shymko, chair, iiSBE Canada SB08 Team Project Solicitation Committee, can be reached at 403-254-4776; gshymko@gfshymko.com Details and applications forms are available at: www.iisbe.org/iisbe/ sbc2k8/teams/canada/sbc2k8_canada.htm. Details on the Melbourne SB08 Conference are at www. sb08melbourne.com.

Steel construction projects awards set for May 16 Awards for innovative steel construction projects will be announced and presented at the Canadian Institute of Steel Construction Ontario Region Spring Reception on May 16 at the Toronto Congress Centre. In additional to the architectural and engineering awards, three new categories have been added this year: green buildings, projects converted into steel, and projects constructed outside of Ontario. For details, contact Suja John, Ontario regional director, 416-491-6461; sjohn@cisc-icca.ca.

GENIVAR expands with CDG acquisition

The GENIVAR Income Fund has acquired the western Canada-based engineering consulting firm of Cochrane Design Group Inc. (CDG) which has more than 150 employees with offices in British Columbia, Manitoba, Saskatchewan and Ontario. With this acquisition, GENIVAR has a workforce of almost 1,800 employees in Canada and abroad. The GENIVAR Income Fund is a Montreal-based consulting engineering services firm with private and public-sector clients. “The acquisition of CDG represents a major step forward in pursuing strategic growth opportunities,” said Pierre Shoiry, GENIVAR president and CEO. “We gain an important foothold in western Canada by establishing a presence in major cities, including Vancouver, Winnipeg, Saskatoon and Regina where CDG is an industry leader. We will also be expanding our operations in Ontario.” Founded in 1974 by Trevor Cochrane, CDG provides engineering and project management services in building, urban infrastructure, transportation, power and industrial and process facilities. It also offers architectural services through PBK Architects. CDG president Rob Harmer noted that “GENIVAR is a great strategic fit with our business. Employees on both sides will gain access to exciting new career opportunities through the enlarged network at the national and international levels.”

SBO7Toronto conference in May

Scheduled for May 31 – June 1, SB07Toronto is a two-day conference organized by the Canadian Urban Institute and hosted by the Green Building Alliance who promise that it will examine best practices and the latest advancements regarding emerging building trends, new technologies and techniques, the environment and technology capabilities of participating regions. The venue is the University of Toronto’s 89 Chestnut Conference Centre in Toronto. The event is intended for public and private decision makers, technology specialists, industry experts, development practitioners, leaders in environmental design, researchers, academics, students and others. Fees range from $450 for non-members to $125 for students. More details at 416-365-0816 or www.canurb.com. Building Strategies Spring 2007

News Cement association supports youth’s green ideas

The cement and concrete industries again this year supported an initiative to encourage sustainable thinking in youth and sustainable building for the future. The partners in Building a Sustainable Future Contest are: Cement Association of Canada (CAC), Ontario Concrete Pipe Association (OCPA), Centre for the Built Environment at Seneca College, EnerQuality/R2000, Ontario Masonry Training Centre (OMTC), Ready Mixed Concrete Association of Ontario (RMCAO), Town of Markham, Trent University Indigenous Environmental Studies Programme, Warner Bros Entertainment Inc. and York Region District School Board. The contest was part of the CAC’s annual Sustainable Future Day, held this year at Seneca College in Markham, ON, where attendees included Ontario Minister of Transportation Donna Cansfield. Students from the York Region District School Board, Centre for the Built Environment at Seneca College and the Indigenous Environmental Studies Program at Trent University had submitted their ideas on a sustainable future and competed for a total of $15,000 in education awards. Each York Region District School Board (YRDSB) finalist received $250, with the first place winner, Emma Ryman of Unionville High

School, receiving an additional $500. Seneca College group finalists each received $500, with the first place winner, Heather McGregor of Mississauga, receiving an additional $500. Trent University (Peterborough) finalist groups each received $1000, with the winning group, which includes Caitlin Bragg, Julia Canning and Andrea Maitucci, receiving an additional $1000, which they have chosen to donate to a First Nations charity. The winning projects proposed novel solutions to sustainability challenges, integrated technologies to enhance efficiencies, addressed key elements of sustainability features and clearly identified sustainability goals. “By holding this contest, we’re encouraging sustainable thinking in youth and sustainable building for our future,” said Sally Moore of the Cement Association of Canada. “The level of awareness and creativity shown today by the finalists is truly impressive.”

COCA applauds Ontario budget except for WSIB

The Council of Ontario Construction Associations (COCA) congratulated the Ontario government for maintaining the emphasis on its ReNew Ontario program in its last budget before the October election. The March budget announced spending $5.9 billion on infrastructure projects in the current fiscal year. This is a continuation of the $30

billion, five-year program announced in 2005 but there is also a doubling of the Rural Infrastructure Investment Initiative to $140 million for projects in rural and northern communities, COCA notes. The government also announced it will be extending the Apprenticeship Training Tax Credit to 2012. The 25 per cent credit (30 per cent for small businesses) is designed to help employers hire apprentices. COCA points out that its extension was one of the suggestions made by COCA during the government’s prebudget consultations. However, COCA did find WSIB announcements cause for concern. “Counterbalancing the positive announcements made by Finance Minister Sorbara, however, is the revelation that the government sees large increases to benefits to injured workers under WSIB,” COCA notes. Although funding is the responsibility of the WSIB, the government has “announced” increases to benefits to injured workers of 2.5 per cent each year from 2007 to 2009 for an increase of at least 7.5 per cent. The government is also extending the period for review and adjustment of an injured worker’s benefits after 72 months. The government is also proposing an amendment to the WSI Act to remove “deeming” so that loss of earnings would be based on what an injured worker would likely earn from suitable as well as available employment.

Reach buyers of construction in the Summer 2007 Issue of Building Strategies Timely, relevant editorial includes a special feature on Project Efficiencies & Inefficiencies. Project Case Study Each issue of Building Strategies presents at least one project where we cover the interesting details of the entire construction project. The Summer 2007 issue will a multi-unit residential building in High Park. The builders encountered unique challenges including keeping intact an existing historic church while building below a two level parking garage and above a 20 story condo. Architect Graziani & Corazza Architects and engineering firm CPE Structural Consultants.

New Technologies & Trends The industry supplement on Security & Life Safety will offer information on access control systems, CCTV, fire safety systems and much more.

Contact Brandon Vigon 416-512-8186 ext. 226

Building Strategies Spring 2007

Legal Corner

By Duncan W. Glaholt

M AT TERS TO CONSIDER IN

LIENING WORK FOR TENANTS

iens against leasehold and freehold interests commonly arise during tenants’ improvements. There is a tendency to under-rate the value of liens on leasehold interests alone. In addition to the market value of the remainder of a leasehold term, however, the real power of a lien against a leasehold interest is found in the standard terms of most retail leases. Under most retail leases, the landlord has the power to pay liens and add the amount to rent. The presence of a lien on a leasehold interest is often a strong incentive to early settlement. Also, where there is a cash inducement or rent abatement for the purpose of fitting out the rented space, or even a damage deposit from the tenant, there may actually be a fund earmarked for payment of such claims. Many contractors in these situations wrongly assume that their work on leasehold improvements automatically gives them a right to lien the landlord’s interest as well. In fact, there are only two ways to lien the landlord’s interest in these circumstances. The easy way is to give notice to the landlord up front under section 19 of the Construction Lien Act; the harder way is to argue that the landlord is an “owner” under that Act. In circumstances where the contractor has the presence of mind and confidence to serve the landlord with a notice that the contractor will look to the landlord’s interest prior to commencing the work, there is a statutory form for that notice. The form is sufficient but not mandatory. As a result, contractors often either create their own notices or go back after the fact to identify some piece of correspondence to the landlord as a notice. Until recently, the leading case on what constitutes proper notice held that at a minimum the notice had to contain the basic elements of the statutory form, being the name of the landlord and a reference to its capacity as landlord, the details of the contract, a description of the improvement to be made, a sufficient description of the premises, a reference to the contractor and the tenant by name and by capacity, and words sufficient to make it clear that the contractor is looking to the landlord’s interest in the land, in addition to the tenant and his interest in the leasehold, to be responsible for payment of the improvement to be made. The court also required additional words sufficient to make it clear that the landlord had to give written notice back to the contractor within a certain time, if it wished to disclaim responsibility for the improvement to be made, and additional words sufficient for the landlord to know when the 15-day period, within which he may disclaim liability commenced.

Recently, this all changed. An Ontario appellate court, the Divisional Court, found the old test too stringent. They held that all that was required was that the written notice be “sufficiently distinct and memorable” to allow the landlord to know when its 15-day period to deny liability began. The Divisional Court also emphasized that so-called “notice events”, such as the landlord’s attendance at early site meetings, its review of plans, or its awareness of the work being done, were not enough on their own to constitute sufficient notice under s. 19(1), but could supplement an otherwise defective written notice. All that is

“

Many contractors wrongly assume that their work on leasehold improvements automatically gives them a right to lien the landlord’s interest as well. There are only two ways to lien the landlord’s interest.

required now is that the “notice” events took place before the delivery of the alleged written notice. The second and harder way to lien the freehold is to make the landlord a statutory “owner”. The statutory test is onerous. It has two requirements. They must co-exist. First, there has to be a specific “request” by the alleged owner that the lien claimant do the work; second, the lien claimant must establish one of the following four additional requirements: p that the work was done upon the owner’s credit; or, p that the work was done on the owner’s behalf; or, p that the work was done with the owner’s privity or consent; or, p that the work was done for the owner’s direct benefit. Direct dealing is not necessary to establish a “request”. Still, there must be some evidence of a “request”. If there is no “request”, there is no lien against the landlord’s interest even if the other requirements of the statute are met. That is a hurdle most claimants cannot cross. B Duncan Glaholt is partner, Glaholt LLP barristers & solicitors Building Strategies Spring 2007

Workplace Health & Safety Corner

Proposed policies cause anxiety

By Nancy Marchese

The Workplace Safety and Insurance Board (WSIB) requested feedback in relation to proposed Early and Safe Return To Work (ESRTW) policies. There is a strong concern that these policies through their excessive penalties and fines will drive many large and small contractors out of business.

number of our construction related firms responded overall, stating: “We find the proposed policies ambiguous, onerous and harsh, making it difficult or close to impossible to reduce duration, claim costs and provide suitable and safe work to injured workers.” It is also unclear what impact these policies will have on the proposed development of separate ESRTW policies for the construction industry. Here are the key concerns of the proposed ESRTW concepts and definitions: Productive: The definition of “productive work” is very subjective, intrusive and impractical, giving rise to conflict and appeals within the process as well as causing undue financial hardship for the employer. The question of whether modified duties “generate revenue, increase business efficiency or lead to business improvements” is not only subjective but also overly intrusive. Sustained return to work: The criterion for sustainable work is again subjective and clearly unworkable. The claims staff at the WSIB does not have the appropriate training, knowledge and experience base to predict short or long term job value (i.e. productive, sustainable, remunerated, etc.), thereby resulting in arbitrary decisions. Remunerated: Noting the construction industry is made up of high earners with low education in general, the ability for the employer to restore as much as possible the worker’s pre-injury earnings is close to impossible. This will increase the number of LMR assessments/programs and claim duration thereby increasing the financial burden to employers. Ensuring co-operation: This policy imposes additional obligations on the employers, however, there is nowhere in the policy that confirms that the WSIB will both verbally and in writing advise workers of their “ESRTW cooperation obligations” which is clearly a WSIB responsibility and duty. Therefore it is our clients’ position that the

Building Strategies Spring 2007

WSIB clearly commit and communicate in the policy that all workers will be advised of their “co-operation obligations” upfront. The workplace parties’ co-operation obligations: For clear understanding and smooth implementation, the chart should include and clearly state the WSIB’s responsibilities in ensuring a successful ESRTW with specific timelines (i.e. advise workers of their “co-operation obligations” and consequences at the start of the claim, monitor cooperation obligations and advise employer accordingly, render non-cooperation decision within two days, etc.) The WSIB’s role in Return to Work The descriptions of the WSIB’s role are too vague. There are no specifics as to how the WSIB intends to assist employers achieving a successful return to work (RTW). Instead, the policy consists of high level motherhood statements that provide no indication and timeframes in assisting employers to meet their RTW obligation and avoid the harsh penalties. The timeframe to provide a ruling by the adjudicator or RTW mediator should be no more than seven business days; not 60 days. The policy should also outline the single action(s) that would constitute non-co-operation. Human Rights legislation and accommodation in the ESRTW/Process: The WSIB has no authority to enforce provincial or federal human rights statues or experience in dealing with these complex and serious matters. Workers are compensated for non-work related injuries via Employment Insurance (E.I.) system, the Canada Pension and Disability (CPP) system and employer private insurance etc. Therefore, accommodating non-work related injuries which are not within the scope of the Workplace Safety and Insurance Act (WSIA) is not acceptable and the policy should be removed. ESRTW Penalties: The high construction premium rates and CAD-7 surcharges are well known

obstacles which are affecting both the economy and business growth. Not being able to accommodate a worker to reduce claim costs and duration, combined with the high premium rates and CAD-7 surcharges, is in itself a huge financial burden to manage. Therefore, instead of increasing penalties, the WSIB should seek ways of assisting employers in reducing claim costs in a collaborative and co-operative manner. New Functional Abilities Forms (FAF): Effective March 1, 2007, the new Functional Abilities Form (FAF) has been introduced. The FAF is issued by the employer, the worker authorizes it and the health care practitioner (for a $40 fee) identifies the worker’s abilities and restrictions. The employer then identifies jobs by way of a Physical Demands Analysis (PDA) that are suitable for the worker based on his/her abilities and restrictions. However, the assessment is very subjective, based on the worker’s symptoms and requires a greater understanding between the doctor and employer with regard to job suitability and accommodations to be successful. On behalf of our clientele, these submissions and comments on the draft return to work policies were forwarded to the WSIB for review and consideration. B Nancy Marchese is WSIB manager, The TRH Group www.trh-group.com

Insurance Corner

Does a surety bond bring value to the construction project? By Rob Burns

hould I ask for a bond on this project? This is a common question that is asked by owners. Given a robust construction economy, one may lean toward not requiring a bond. However this decision may be a costly mistake. Today, the construction economy is growing and, in some jurisdictions, booming. But, the construction industry is a risky business. Governments and owners of construction projects need financial security in place and the assurance that their projects will be successfully completed. Surety bonds play a vital role in the success of a construction project by providing valuable prequalification of the contractors, along with financial security and construction assurance to owners of construction projects. Even a booming industry is not immune from construction failure. In fact, in a rapid growth environment, the impact of construction failure can be more severe. Recently, Statistics Canada reported on its website a total of 6,756 bankruptcies in all industries in Canada in 2006 and the construction industry represented the highest number with 1,152 bankruptcies, or 17 per cent. Even capable and well-established contractors can fail due to a number of factors including growing work programs causing the capital base to be more leveraged, problem receivables, staff challenges, an unexpected event or economic downturn, or sometimes just plain bad luck! Since 2000, the surety industry in North America has paid well over $10 billion in claims with a large percentage of

Building Strategies Spring 2007

those claims related to construction defaults. Surety bonds are a valuable tool in mitigating and managing the risk inherent in construction projects. In effect, the burden of the construction risk is shifted from the owner to the Surety company. When 50 per cent performance and 50 per cent payment bonds are required on a project, the bonds ensure that the contractor will complete the project and pay the subcontractors and suppliers. Surety bonds guarantee the owner (obligee) that the contractor (principal) will successfully perform the contract. The Surety is willing to accept this risk based on the results of a professional and rigorous prequalification of the contractor. The prequalification process is one of the most valuable benefits of a surety bond. Sureties that have been in the business in Canada for a number of years are intimately familiar with the reputation and performance of Canadian contractors. Contractors that do not meet the high qualifying standards of competence are disqualified from the process. For example, a Surety will often request more capital to be allocated or retained in the construction company, especially if the contractor is looking at a larger or longer duration contract. In addition, the Surety will evaluate the team and key personnel, prior experience in this type of work, quality of trades, and the total work program that the contractor currently has in place. Since the Surety takes indemnities as security from the contractor, these indemnities also serve as an incentive for the contractor to complete the contract, thereby providing a further mitigation of risk for project owners. If the contractor defaults and is unable to complete the work, then the Surety steps in and uses its resources and expertise to arrange for completion of the project. Subtrades are also often severely affected by the default of a general contractor. An often

underestimated value of surety is the labour and material payment bond. In the event a general contractor defaults and there are unpaid trades, the labour and material payment bonds provide protection to the local trades by ensuring that they will be paid for the work they have performed. This prevents subtrades from defaulting or abandoning the project, and instead allows the subtrades to continue to perform the work to project completion. A few years ago, Travelers Guarantee responded to a claim on a performance bond by the Government of Yukon when the contractor failed to complete a contract on a highway project. “This case is a good example of the value of having a performance bond and we were pleased that the bonding company offered flexibility in coming to a solution that met our needs,” said Robin Walsh, Professional Engineer and Director of Transportation Engineering Branch for Yukon Highways & Public Works. “The negotiated settlement provided advantages to us as the owner, in that it gave us control of the work which enabled the completion to be expedited in an efficient manner and it created options for involving local contractors who were familiar with the challenges of working in the project’s remote location and relatively harsh environment.” A surety bond is an invaluable risk mitigation tool. And particularly, when the construction economy is booming, the surety bond plays an even more valuable role in the success of the construction industry by shifting the risk from governments and owners of construction projects to the Surety. In addition, contractors, subtrades, lenders, and taxpayers all benefit from the Surety’s guarantee of the successful completion of the specific construction project. Does a Surety bond bring value to the construction project? The answer is an unequivocal yes! B Rob Burns is senior vice-president, Underwriting, Travelers Guarantee Company of Canada.

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Environment Corner

By Camille Atrache

Dealing with subsurface remediation

ubsurface Remediation includes identifying, quantifying and controlling contaminated source(s); considering cleanup levels required for each medium (air, soil, and ground water) to protect human health and the environment; and selecting treatment technologies based on information obtained concerning source(s) and cleanup levels. The challenge is to effectively relate site characterization activities to selecting the most appropriate remediation technologies for contaminated soils and groundwater at hazardous waste sites. The contaminated subsurface is a system generally consisting of two phases – solid and fluid – and five compartments, namely gas, inorganic mineral solid, organic matter solid, water and oil (Non-Aqueous Phase Liquids (NAPLs)). NAPLs are divided into two classes. LNAPLs are those that are lighter than water such as hydrocarbon fuels (kerosene, diesel, gasoline, etc). DNAPLs are those with densities greater than water such as chlorinated hydro carbons ( polychlorinated biphenyls (PCBs), tetrachloroethylene, chlorobenzene, trichloroethylene (TCEs), etc). Currently, several remediation techniques are being used to restore contaminated groundwater and aquifer material. The pattern of contamination from the release of contaminants into the subsurface environment, such as would occur from an underground leaking storage tank containing NAPLs, is complex. As contaminants move through the unsaturated zone, a portion is left behind, trapped by capillary

Building Strategies Spring 2007

forces. If the release contains volatile contaminants, a plume of vapour forms in the soil atmosphere in the vadose zone, i.e., the region extending from the ground surface to the upper surface of the principal water-bearing formation. If the release contains LNAPLs, they may flow by gravity down to the water table and spread laterally. Groundwater moving through subsurface sediments contacts the release and then more water-soluble components are dissolved into the water phase. Therefore, three distinct regions of contaminants are formed in the release. A plume of fumes in the soil atmosphere, a groundwater plume, and the region that contains the oil phase material that serves as the source area for both plumes. If the release contains DNAPLs, these contaminants can penetrate to the bottom of the aquifer, forming pools in depressions.

The pump-and-treat remediation technique Both hydro geologic information and contaminant information are required for pump-and-treat remediation. Hydro geologic information about groundwater flow includes geological and hydraulic factors as well as groundwater withdrawal factors. The main advantage of the pump-and-treat system is that it could be installed on the property and operated with minimal interference with the operation and use of the property. (The property could possibly be developed without interfering with the pump-and-treat system as well). This remediation method could be made by the use of either wells (extraction wells, injection wells or a combination of the two) or drains. For low permeability material, drains may be used. If

the hydraulic conductivity is sufficiently high to allow flow to wells, then wells are recommended. Injection wells reduce cleanup time required by flushing contaminants to the extraction wells. Injected water can contain nutrients or electron acceptors where bioremediation is used. Injected water could also contain enhanced oil recovery materials for NAPL contaminants. Pump-and-treat remediation has two parts: 1) pumping system and 2) treatment system. 1) The groundwater pumping system utilizes the principle that groundwater flows in response to hydraulic gradient. A drop in hydraulic pressure is created by the combined effects of elevation, fluid density and gravity. The migration of a plume from its source area often can be prevented by capturing the plume with a purged well. The well must pump hard enough to overcome regional flow in the aquifer. Hydrodynamic control of a contaminated groundwater plume is accomplished by the hydraulic gradient. Along with the pumping system, a physical containment could be used to improve the remediation process. This includes installing barriers to groundwater flow (e.g. slurry walls, sheet pilings, grout curtains, etc.) or diverting uncontaminated surface water away from the contaminated site or contaminated water away from clean areas. Containment also limits the amount of uncontaminated water that requires treatment. 2) Contaminated groundwater and vapours that are withdrawn from aquifer sub surfaces can be treated by various methods, depending on the contaminants. Treatment methods may include one or more of the following: A) physical processes such as adsorption into activated carbons, ion exchange, filtration, air stripping, etc.; B) chemical process, such as neutralization, coagulation, precipitation etc. You could also use a combination of both. In conjunction with the above, biological in-situ treatment of the contaminants is used as well. This is usually accomplished by stimulating indigenous subsurface micro organisms to degrade organic waste constituents. B

Camille Atrache is chief operating officer and partner at Tri-Phase Environmental Inc. Next issue: soil remediation techniques

Construction pace predicted to moderate

By Duane Sharp, P. Eng.

here will be no looking back for Ontario’s non-residential construction sector, with increased growth forecast for 2007, according to recent figures released by the Construction Sector Council (CSC) and the Council of Ontario Construction Associations (COCA). One of the key drivers of the construction sector is investment. New commercial construction investment in Ontario is expected to continue to grow at a steady rate, surpassing its growth between 2005 and 2006 (7.2 percent) and estimated to increase to 7.7 percent between 2006 and 2007. Ontario will continue to be the top provincial performer in the construction sector over the next five years, with expenditures

Several organizations predict there will be a moderate increase in overall growth of the construction sector, replacing the heady pace of previous years. growing from a forecast $398,063 million in 2007 to $420,621 million in 2011. Nationally, according to the GDP, the average growth in the construction sector exceeded that of all

other industry sectors between August of 2005 and August of 2006, by a healthy 2.6 percent (4.8 percent versus 2.2 percent). However, on a national basis, the five-year economic Building Strategies Spring 2007

and employment forecast for the Canadian construction industry indicates that after two strong years, the construction industry nationally is set to record a more moderate performance in 2007. Following growth in construction investment of 3.2 percent in 2005 and 3.4 percent in 2006, construction investment is expected to grow by only 1.7 percent in 2007, and by the same percentage in the 2008 and 2009. Across Canada, non-residential construction investment has boomed over the past two years, recording growth of 7.4 percent in 2005 and 7.2 percent in 2006. Non-residential construction growth will moderate to 3.2 percent in 2007 and 2.2 percent in 2008. Rosemary Sparks, director of projects, CSC, provided Building Strategies with some preliminary information on the forthcoming construction report. “Work on the Construction Looking Forward Labour Requirements from 2006 to 2015 report, is expected to be released in May,” she noted, “and we expect to find that the Ontario economy grew 1.6 percent adjusted for inflation in 2006, falling from 2.8 percent in 2005. High energy prices and a very rapid increase in the Canadian dollar hurt Ontario’s manufacturing and tourism sectors causing growth to fall sharply in 2006. The lingering impacts of these factors and slower growth in the U.S. economy, in particular, in the auto and housing sectors, will continue to dampen growth in 2007, estimated at 1.8 percent.” On key indicators, according to other industry statistics, the growth rates for Ontario in non-residential building construction are forecast to be 0.8 and 1.6 percent for 2007 and 2008, respectively. These early indications of growth trends in the Ontario construction sector suggest that a number of regions across the province will face weak market conditions in 2007. The outlook for residential construction, for example, shows continued declines in 2007 with housing starts dropping from peak of 85,500 in 2004 to a projected level of 68,000 in 2007.

Ontario infrastructure investment

COCA, in its recent submission to the Standing Committee on Finance and Economic Affairs, 2007 Pre-Budget Consultations, greeted the Ontario government’s announcement of a five-year, $30-billion infrastructure investment plan, with approval. This plan is considered to be an important undertaking that will require a great deal of effort, but infrastructure investments are a means to advance social and economic goals. Investment means jobs. For example, every billion dollars invested in public infrastructure is associated with approximately 10,000 more jobs. Investment in infrastructure, however, is worth much more than direct results because it helps create a high quality of life for residents. Commodity price inflation is expected to ease over the forecast period with prices falling in the medium term and rising in line with inflation thereafter. A strong and growing

Building Strategies Spring 2007

demand for commodities – steel, concrete, copper, and other construction materials – from the Chinese economy is a major factor preventing commodity prices from falling sharply from their recent large gains. According to COCA, economic growth in the United States, one of Canada’s largest trading partners, averages in excess of 3.0 percent over the forecast period, while growth in the Canadian economy averages 2.6 percent. Adjustment to a stronger exchange rate along with differences in demographics and trend productivity growth account for much of the difference between Canada and U.S. growth. These investments will take on greater importance as Ontario’s population and economy grows. Between 2007 and 2031, Ontario’s population is expected to increase

“

Atlantic Canada There is a mixed forecast for the construction sectors in the four Atlantic provinces, based on analysis by the Canadian Construction Association, where declines in the commercial and industrial sector pre-dominate throughout the region. Historically, all four provinces have seen growth in the institutional and government sectors, some fairly rapid, with others rising at a slower pace. The bright spot in all of the Atlantic provinces is the residential sector. The past few years have seen a significant increase in new housing, as well as the rapid growth of residential building investment expenditures. Over the next four years, up to 2011, the forecast growth in the average percentage change in non-residential construction activity

A strong and growing demand for commodities – steel, concrete copper and other construction materials – from the Chinese economy is a major factor preventing commodity prices from falling sharply from their recent large gains.

by more than four million people, and the economy is expected to generate close to two million jobs. With this rapid growth, the province will be faced with tremendous pressure to upgrade aging infrastructure, and to build new hospitals, schools, transportation systems and water systems. The projections of investments to be made by the Ontario government and various agencies directly involved in building infrastructure and providing public services are immense. It is anticipated that over the next 30 years, more than $100 billion will need to be invested in public infrastructure. In fact, the Minister of Public Infrastructure Renewal has stated that the estimated number may be on the low side. In its pre-budget report to the Ontario government, COCA also had some pointed recommendations, including a recommendation that the Government should concentrate on removing frustrations and barriers to business and economic growth and examine ways to stabilize spending so that individual Ontarians and businesses can realize the benefits of a balanced budget as soon as possible. On the other hand, COCA congratulated the Ontario government for efforts to assist with increased in labour cost and materials, by creating – for the first time – a viable and more reliable source of funding for public infrastructure. The Association recommended that “this program should be continued beyond the $30 billion announced in the 2005 budget and increased, because it not only strengthens Ontario’s competitive capacity but the thousands of jobs and dollars dedicated to infrastructure renewal are an investment, not an expense.”

will show steady declines in Nova Scotia and Prince Edward Island, with New Brunswick rising in 2008, then declining. Newfoundland will show strong growth this year, declining next year and then rebounding in 2009, to the highest level for all four provinces from 2007 to 2011. Increased costs along with growth Along with increased growth goes increased cost, and forecast increases in labour and material costs indicate some significant regional labour cost increases, as well as increase in the cost of critical construction materials for the Ontario sector. Paul Westwood is executive vice president, Hanscomb Limited, a Canadian company which provides a variety of services related to the cost and financial management of construction projects, including cost planning and control, scheduling, value management, loan monitoring, program management, and feasibility studies. Commenting on the increase in labour costs and materials for 2007, he notes that “we estimate that the average increase in Ontario in the forecast ‘output index’ – the final cost of a construction project, taking into account both labour and materials – will be between six and eight percent, right across the province.” How does cost planning and control benefit a construction project? When cost planning is applied at the early stages of project planning, alternative concepts can be properly evaluated and realistic budgets can be established, avoiding possible conflicts that arise when budget and concept issues need to be revisited later in the design process. The next few years will see some ups and downs in the non-residential construction sector, as inflation and consequently the cost of construction materials, fall and rise in lock-step. B

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he tough news in the construction industry is that staffing shortages in some categories are so significant that they will not be filled in months or, for some occupations, even years. An aging construction trades force and the challenge of attracting an adequate number of new recruits to replace those workers retiring from the labour market are serious issues facing this industry sector. While the Construction Sector Council (CSC) expects employment in construction to decrease in all other provinces between 2007 and 2010, construction employment in Ontario will continue to rise, to an anticipated total of 23,393 new construction jobs in Ontario by 2011. Meanwhile, statistics show that the Ontario construction labour force that grew by 7.1 percent in 2005 and 2.7 percent in 2006, is only expected to grow by .9 percent in 2007, averaging over 1,055,000 workers. Construction employment levels in the Atlantic provinces are anticipated to increase in numbers over the next two or three years and then to decline for the last two years – 2009 to 2011, for New Brunswick, Nova Scotia, and Newfoundland, and to be relatively flat for the same period in Prince Edward Island. With over 150,000 workers set to retire over the next ten years (19 percent of the current workforce), the supply of labour will be a continuing challenge. “At last count, the average age of a bricklayer in Canada was fast approaching 60,” says Brian Watkinson, principal, Strategies 4 Impact! Inc., and former executive director of the Ontario Association of Architects. “True, there has lately been renewed emphasis on informing young people about the construction trades in the hope of attracting them to the industry, and some provinces have seen some limited enhancement of apprenticeship programs. Nonetheless, the fact remains that there is a

Building Strategies Spring 2007

huge shortage in the construction trades, and that shortage shows every sign of getting worse. “And this comes at a time when the industry is extremely busy,” he continues. “The private sector is building, building, building. Meanwhile, governments across the country are finally taking serious steps to address the infrastructure gap. Years of neglected maintenance have built up a huge backlog of desperately needed repair, reconstruction and replacement, while our aging population is creating new demands for public and private construction – recreation, long term care, health care and much more.” A previous CSC examination and forecast of labour requirements in Ontario from 2006 to 2014 points out that the key to meeting the industry demand for this period is a mobile work force that shifts to different regions of the province, and forecasts that over 48,000 replacement workers will be required to replace retirees during this period, and there will be a requirement for 22,000 additional workers to meet new construction demand.

Increased training opportunities

Another method of helping to ease this labour shortage is to increase the training opportunities for apprentices. In its early 2007 pre-budget report to the Ontario Government, the Council of Ontario Construction Associations (COCA) recommended that the government facilitate changes to the Apprenticeship Tax Credit to expand its value to small businesses and to the thousands of young people who are both willing and able to increase Ontario’s supply of skilled workers. “We also pointed out that some modifications are required in this program to recognize the unique character of the construction sector regarding apprenticeship,”

says Karen Renkema, COCA vicepresident, policy and government relations. “Our suggestions for modifications to this program have been made to the government, and involve several areas, including: the coverage period of the tax credit, retention of apprentices, and the terms under which the tax credit can be claimed.” For workers, keeping skills current and having the ability to move across sectors – from new housing to renovation – or across regions – should allow steady employment. All of this is in line with the CSC’s observation that a mobile workforce is the key to meeting labour demands, in a short-staffed labour market. Even so, Watkinson is one of many industry experts who fear we simply do not have the capacity to deal with all of the work that is needed. “Over the last several years,” he notes, “there has been continuing competition with other industries for skilled workers and this was often an advantage to the construction sector when other industries faltered. Additions to the construction labour force came at the expense of other industries such as manufacturing, where jobs were lost. “Infrastructure Ontario is very aware of the capacity challenge,” he adds, “and has taken pains to stagger major infrastructure projects over a five-year timeframe in the attempt to keep them manageable. But the crunch will come when the top five or six contractors are running at capacity, and when there simply are no trades available to do the work for them.” In the area of professional services, design firms across Canada are having very serious problems finding architects as well as all the other types of professional services essential both to getting the work done and to sustaining a practice into the future.

Will immigration help?

Some politicians and policy-makers are pinning their hopes on immigration to solve the problem, recalling that it was immigration that helped Canada face similar challenges in the post-World War II years. Although this situation could be repeated, it will take government policies that are not only properly aligned with the needs of the industry, but reflect current needs as far as tradespeople are concerned, policies that have proven to be challenges in the past. There are also unique challenges facing immigrating design professionals. “What is needed first is a mechanism to objectively and consistently evaluate the competencies of each individual,” says Watkinson in reference to evaluating the competencies of architects from other countries. “That is a challenge enough for a small profession. But then there must also be readily available ways for newcomer professionals to upgrade their skills to address any deficiencies which have been identified – a tall order, indeed!” One group of individuals armed with industry experience and strong business

acumen created SkilledWorkers.com, an online community dedicated to skilled tradespeople and the companies that hire them. Since its inception, SkilledWorkers.com has gained wide support and industry recognition for its innovative approach and user-friendly design. Working together with employers, recruiters and the Canadian government, SkilledWorkers.com is making efforts to provide the construction and skilled trade industries with a career management and online job board service.

Construction management training

One area in which several Ontario construction industry companies expended considerable effort over the past year or more, is in the area of construction management training for internationally-trained construction personnel. Today’s complex building industry requires professional managers who can successfully function in multi-disciplinary teams consisting of project managers, architects, engineers, regulators, environmental consultants, urban planners, contractors and trade contractors. Managers also require a comprehensive understanding of quality management systems and a deep and broad technical background in the construction industry. George Brown College in Toronto initiated a pilot program in construction management, which took in its first students this past January, and which was previously highlighted in Building Strategies. Construction Management for Internationally Educated Professionals offers postgraduate three-semester applied education for management positions in all construction settings, including an enhanced workplace experience component to help students make a quick transition into a job. “It’s a helluva challenge to meet the demands of the industry,” concludes Ralph Lembcke, coordinator, Construction Programs, Building Technology Division at Fanshawe College in London, ON. He says the trend in the past three to four years has already been to have more jobs than graduates to fill them. The College’s Construction Engineering Technology and Management program has a four-month and eight-month co-op feature so students already have 12 months of paid, work experience by the time they graduate. Lembcke expects 50 students will graduate from that course this year which is among the highest number of graduates. He says the Building Technology Division is looking to expand next

fall by admitting about 20 percent more students but having a higher enrolment is a challenge since “we’re bursting at the seams and we have to have the resources for them, like teachers.” Courses include the one-year Construction Carpentry Techniques, two year Construction Engineering Technician – Supervisor and three-year Architectural Technology, Civil Engineering Technology and Construction Engineering Technology (Management). In the latter program, students learn to estimate material requirements and costs, schedule and manage construction projects, do field surveying for building layout and create structural designs of simple buildings. Graduates work for general contractors, developers, material suppliers, subcontractors and governments. Fanshawe is fully accredited by the Canadian Institute of Quantity Surveyors (CIQS). B

High school students help meet labour demand

As changing demographics are straining Ontario’s supply of skilled resources, some employers are using school-work programs to attract high school students to their sectors or businesses. More than 26,000 organizations across Ontario currently offer high school students work experience opportunities through the Provincial Partnership Council’s Passport to Prosperity campaign and are, in turn, helping shape the province’s future workforce. The Provincial Partnership Council is a volunteer group of business leaders that encourage employers to offer school-work opportunities to high school students across the province. The Council provides five reasons for employers to start a school-work program: 1. School-work programs are a cost-effective tool for recruiting, training and retaining young workers. 2. Offering high school students work experience increases competitiveness and enhances a company’s productivity. 3. Students bring positive and youthful energy into the workplace. 4. School-work programs are great additions to a company’s corporate social responsibility program, enhancing public image and consumer loyalty. 5. Youth in the workplace give supervisors experience in managing a multi-generational workforce, a skill they’ll continue to need as our workforce ages. Contact www.obep.on.ca to start your own school-work program in Ontario by finding your local business-education council or local training board. (Source: www.newscanada.com) Building Strategies Spring 2007

Project Profile

P3 teamwork builds a caring By Susan Maclean

Photos courtesy of Royal Ottawa Health Care Group

The Royal Ottawa Mental Health Centre, Canada’s first teaching hospital and research institute to be designed, built, operated and maintained in partnership with the private sector, was completed on budget, ahead of schedule and with no accidents. Its success is an outstanding testament to the effectiveness of this innovative approach to public infrastructure. But, it’s also due to a remarkable commitment that seems to have touched everyone involved in the project from its very beginning.

Building Strategies Spring 2007

s a public-private partnership (P3) undertaking, the Royal Ottawa Hospital (ROH) project includes the design, build, operation and maintenance of a new $132 million, 400,000 sq.ft., state-of-the-art psychiatric teaching hospital with 188 inpatient beds and a tower housing the University of Ottawa’s Institute of Mental Health Research. Serving communities across eastern Ontario, it combines wireless information technology with a healing, therapeutic environment filled with natural light, extensive patient courtyards and a winter garden. A ‘life-cycle’ program ensures that the facilities remain in a ‘like-new’ condition for the duration of the 20-year agreement and will be continuously maintained. The consortia awarded the construction was The Healthcare Infrastructure Company of Canada (THICC), which is comprised of: Borealis Infrastructure Management Inc., Carillion Canada, Ellis Don Corporation, Oxford Properties Group, Parkin Architects Ltd. and Adamson Associates Architects. It all began in the year 2000 when Graham Bird, president of GBA Development Management Co., who would become the ROH redevelopment project manager in joint venture with Zeidler Walker Limited, was asked to look at the existing hospital campus to see if commercial interests could be encouraged to find money to address the plight of mental health sufferers.

The new Royal Ottawa Mental Health Centre offers a calming and comforting environment infused by natural light to provide a therapeutic atmosphere for patients to get well.

environment “Bringing up the word private with public healthcare was then, frankly, bizarre,” Bird recalls. But, as then CEO and instigator George Langill remembers, the timing was right and the ball got rolling. And did that ball ever roll! The hospital officially opened in October 2006. Langill retired in December 2004 after he had steered the project to the point of it being financially approved and there was no turning back. He says if it had not been for the P3 model “we would still be waiting for this badly needed facility. It would have taken 17 to 20 years on average at best by traditional means.” Instead, the state-of-the-art facility was built within a five-year window – and physical construction within two years.

The P3 aspect of the project required a committed team, but Bird says that’s just what they had. “Everyone was so determined to fix the mental health problem here that no one was going to stop us! The spirit that grew out of that commitment took us to the goal in spite of 80 to 100 hour long weeks and lots of all-nighters.”

Tight budget, tight schedule

Architect Mark Driscoll at Mississauga, ONbased Adamson Associates Architects, recalls that the tight budget and schedule certainly created challenges that were somewhat unknown to those experienced in doing Ministry of Health projects. He says there

Building Strategies Spring 2007

Above and below: The abundant use of glass in the centre outpatient area as well as on the exterior countered the idea of this being a cloistered or introverted institution.

“

The Royal Ottawa Mental Health Centre is an innovative public infrastructure renewal program that has the capital costs of the new facility and the operating costs of the non-clinical services blended into a monthly mortgage over a 20-year partnership.

were learning curves involved in this new way of approaching mental healthcare design within the context of a private development publicly operated. “There were some very tough value engineering choices. It took several months to go through it all before we were awarded the job. There were tons of reviews and compliance checks. Obviously everyone was interested and had their own separate team of specialists and consultants.” As part of a three-part team with Torontobased Parkin Architects and Ottawa-based Brisbin Brook Beynon Architects, Driscoll says “there was a lot of teamwork involved in how to do the work effectively and not overlap too much.” Working as a team “required getting over being competitive and bringing as much as possible to the table while conforming to government requirements,” he adds. A special emphasis was placed on deinstitutionalizing the building so it would be a comforting place for residential patients. The design team also avoided a too slick or corporate image. “The interior décor, amenities and ancillary services all play an important

Building Strategies Spring 2007

part, along with the staff, in providing a therapeutic environment of hope, warmth and caring to patients and their family members,” says Langill. Adamson was responsible for the design of the interior and exterior public spaces,

including a winter garden in the large atrium in the centre of the structure. The central winter garden with more than 100 skylights is a large open market area offering a range of services, including a coffee shop, hair salon and a used clothing store in a comfortable setting to relax and socialize. The abundant use of glass in this centre outpatient area countered the idea of this being a cloistered or introverted institution. From that core interior run various departments that focus on their specific contribution to mental healing. Parkin Architects was responsible for the planning and the interior design of all the program spaces in the interior. Nine three-storey home-like inpatient care units wrap around outdoor courtyards to provide access to safe outdoor

More than just a pretty space, the facility features wireless communications technology and, in the research centre, state-of-the-art laboratories.

environments and natural light in every bedroom and area of the hospital. Each unit has its own address on the atrium and its own palette of textures and materials still related and easily accessible to the hall but also identifiable.

Building Strategies Spring 2007

Focused on end users

For the comfort of staff and patients, Parkin worked to ensure that every office has an exterior window and view, that meeting rooms are infused with natural light and that corridors are not overly long.

Running from the outpatient area in the centre, every department has its own access to the centre atrium and its own palette of colour and materials such as glass, brick, metal, cedar and other wood plus canopies and other detailing. Every department also has its own exterior garden. “Moving out to the periphery which is the outpatient to the inpatient to the residential, that palette gradually transcended to become brick, cedar, wood, glass that looks more residential, a little metal for accent,” says Driscoll. “It’s a dialogue going on transitioning from the centre to the side.” The facility has 188 inpatient beds but it is expected that at least 60 per cent of the programs focus on the delivery of specialized care in outpatient clinics and communitybased programs. Brisbin Brook Beynon Architects did the planning and interior of the sevenstorey tower on the southeast corner which houses the Ottawa Institute of Mental Health Research. The entire design team collaborated on the exterior of the tower. The tower has a palette in a more high-end corporate language but not overwhelmingly so, says Driscoll. “It was given prominence and it is seen as leading the facility because it is well known around the world but at the same time it didn’t overwhelm the facility like big brother peering down on the hospital itself.” The design team met weekly throughout the project to resolve design issues and ensure

“

In spite of the tight two-year schedule, construction was ahead of schedule and on budget throughout the project. Awards were presented to workers for their adherence to excellent safety standards that resulted in an accident-free work site.

everything was on track. As the project neared completion, the team met monthly. Driscoll notes that because there are a lot of different materials, ins and outs and articulation involved, much of this costs a lot of money which would concern a commercial developer – which is what you might expect a client for a P3 to be. “There were a few tough decisions along the way and we had to very carefully understand what each element would bring to the project,” he recalls. “Life cycle costing became a really important aspect of it that is perhaps not quite as critical on some commercial buildings but very important on institutional buildings with public money. Definitely there were some tough moments along the way but we worked through it. Everyone kind of believed what the hospital saw as the advantages of our scheme and it got built, to the credit of everybody. The end results speak well for the decisions that were made.”

Intense project management

Driscoll credits Graham Bird as being instrumental in bringing the project together. Involved from inception, Bird admits that the project management aspect of a P3 project goes beyond construction. Through all the stages from dream concept to architecture to financing to commissioning and maintenance, Bird served as the hospital’s development agent. He was caught up in the corporate thinking and business case analysis, assessing high-end and off the balance sheet aspects of financing, steering the project along the difficult path through government and politics, dealing with trades, putting the deal together and overseeing long-term asset construction. A significant difference in this and the traditional process of funding a hospital is that the government separates the capital side from the operational side, Bird explains. P3 brings these together in a partnership that is

responsible for the hospital for the next 20 to 30 years. The hospital remains a fully public hospital under the Canada Health Act but nonclinical services such as linen, dietary, security, facility maintenance and operations are the responsibility of the Health Care Infrastructure Company of Canada. “The P3 technique allowed us to get those providing money, those carrying out the design/construction and those providing long-term facility management to be responsible for the facility over the next 20 plus years, keeping it 'like new' the entire time,” Bird says. “By bringing together the capital and operational aspects of the facility we enabled those who work here to focus on healthcare (as opposed to dealing with an aging facility).” Construction began December 17, 2004. The official opening was October 27, 2006. At press time, the old buildings that made up the hospital campus were being demolished to make way for a new youth and geriatric psychiatry in-patient unit slated for completion by July 1, 2007. Throughout the project, construction was ahead of schedule and on budget. Awards were presented to workers for their adherence to excellent safety standards, creating an accident-free work site. Although Langill says the P3 element of this project amplified the team effort, Bird says the former CEO’s determination to improve mental health services has been described as a key driver of the P3 team.

Building Strategies Spring 2007

“I’m most proud when I see how the building gives family members a new sense of renewal, recovery and hope,” says Langill.

Three key success factors

A key to the project’s success is what Bird describes as “controlling the fidgeting.” He says there was an agreement with the Board of Trustees to define what the private sector could and could not do. There were clear lines drawn to distinguish facility and hoteling from dealing with healthcare. “Once that was defined and once we started down the path, there was a no change policy until it was up and going.” Bird says it also helped that there was “not a penny to the consortium until the hospital was up and operating.” In this way, the traditional draws and all too familiar change orders were eliminated. “Changing and fidgeting is a disaster in the making,” he stresses. Another key was setting up communication so workers on the site were never stopped while an answer to a question or a decision was being made. “We had a process set up so the hospital answered questions quickly – at three in the morning, if need be. Many times all-nighters happened to deal with design, banking or legal issues of the project. We could get decisions any time of the day or weekend.” Good union relations was yet another key. Bird says they had great relations with the construction unions who became

partners on the project. During its peak construction period, 800 construction workers and tradesmen were employed on the site with many more off site on the supply side. “Everyone got the importance of this and the enthusiasm carried through. The team pressure was neat to see.” On Labour Day, the consortium ran an ad in the Globe & Mail thanking the labour group. “It was heartfelt,” says Bird. “Pride of workmanship is evident in everything we build, but the Royal Ottawa Hospital project inspired the best of the best and we are proud of our members for their outstanding performance,” noted Dan Plunkett, president of the Unionized Building and Construction Trades Council of Eastern Ontario and Western Quebec. “You should see the patients’ faces and the difference in families when they come here,” Bird adds. “At the end of the day, that’s what this is all about.” The success of this project is having a ripple effect. “Mental health has been at the back of the bus in terms of healthcare,” says Bird, noting that this project has changed that to some extent. “The whole exercise brought quite a commitment. Inch by inch, support and understanding of the problem is growing dramatically. Enthusiasm has grown across various sectors who didn’t know much about mental health. It helps that this project has been successful.”

Role of the compliance team As the mechanical and electrical engineers for the owner’s compliance team in the Royal Ottawa Hospital project, Smith and Andersen sees a growing need for highly qualified and cooperative (design) compliance teams in addition to the design services as large projects with alternative delivery methods such as design-build, Public Private Partnerships (P3) or Alternative Financing and Procurement (AFP) become more common. The compliance consultants are not only assigned the responsibility of ensuring that the client’s requirements are complied with; they are also directly involved with ensuring that the design-build team has the proper parameters to design towards and facilitating to the flow of information between the different client groups and the design-build team. The compliance team needs to be aware of and sensitive to the Design-Build’s critical success factors such as key milestones, obstacles and barriers. Smith and Andersen stress that a design-build contract and scope-ofwork that is a concise and complete representation of the owner or user group’s ultimate requirements for the final product will result in a more harmonious process for the entire project team.

CEDARCREST ARCHITECTURAL SPECIALTIES LTD. 525 Hwy #3, RR#2 Courtland, Ontario N0J 1E0 Tel: 519-688-0269 • 866-705-4451 Fax: 519-688-0174

Building Strategies Spring 2007

The project’s success also bodes well for future P3 initiatives. B

Team players

Royal Ottawa Hospital redevelopment project manager Graham Bird describes those working on the project as “the who’s who of healthcare.” The talented team represents a wide range of organizations dedicated to designing a spectacularly innovative mental health centre: Project Managers: GBZW -- GBA (Graham Bird and Associates) in joint venture with ZW Group Inc.; Compliance Consultants: Murphy Hilgers Architects Inc.; Design Build Contractors: EllisDon; Carillion Services ROH Inc.; Architects: Parkin Architects; Adamson Associates Architects; Brisbin Brook Beynon Architects; Structural: Adjeleian Allen Rubelli; Mechanical: The Mitchell Partnership Inc.; Geo. A. Kelson Company Ltd.; Electrical: Carinci Burt Rogers Engineering Inc.; Univex Ontario Ltd.; Civil: Marshall Macklin Monaghan; Landscape: Corush Sunderland Wright; Additional Experts: A J Watts Consulting Inc.; Daley Ferraro Associates; Siemens Building Technologies Ltd.; Paul Douglas Sprinkler Ltd.; Upper Canada Specialty Hardware Ltd.; and Johnson Controls Inc.

Wireless infrastructure A “next generation infrastructure” at the Royal Ottawa Hospital for the deployment of Nortel’s wireless mesh networking equipment was provided by CaTECH, one of Canada’s leading providers of communications solutions to Fortune 1000 organizations. CaTECH provided the network design, implementation services and ongoing support for the system. This overall infrastructure consisted of over 360 high-speed data cables to service wireless access points throughout the campus, over 28 fibre optic cables to connect the various communications closets back to a central location and complete pathway preparation for the cabling infrastructure. All cabling installed for the project was provided and certified by Belden, one of the global manufacturing leaders for structured cabling systems. Comments supplied by Smith and Andersen and CaTech

A world view extends design-builder’s horizons By Bryan S. Rogers

iffels Design-Build Inc., a Toronto-based primary operating company of the Ingenium Group Inc., describes itself as a full service, employee-owned, consulting and contracting organization with a staff of over 1,100. Giffels offers full design-build services for industrial and office facilities, for sale or lease, for commercial, institutional and industrial clients across Canada, the United States, the Middle East, Eastern Europe, Hong Kong and select international markets. Giffels DesignBuild’s turnkey services include the design, procurement, installation and commissioning of conveyor systems, racking and all related material handling and process equipment and systems. “Giffels provides a depth of experience and a range of services unmatched in an employee-owned company,” says Burt Meredig, the company’s director of marketing. “Giffels provides turnkey project services delivering several million square feet of premises annually.” The company has a long history of designing and managing the construction of industrial, office, retail, residential and institutional facilities worldwide, according to Meredig. The original A/E firm expanded in 1995 with the establishment of Giffels Design-Build Inc. On the global stage, in years past the firm had undertaken projects in India, Argentina and Brazil in the automotive area, but the work performed was targeted to that sector only. Giffels went global with a multi-sector approach in 1997, with the merger of NORR Group Consultants International Limited in the Middle East. A project in Russia is particularly interesting. Giffels has become the most prominent and growing Canadian presence in the estimated $4 billion US Moscow development industry. Michael Le Gresley, CEO of Giffels DesignBuild, has been quoted as saying, “Giffels’ goal is to become the largest logistics and industrial

space developer in the Moscow region. There is political risk but the daily operating risk I believe is vastly overstated in the media. Russia shares the upside of all developing areas: Mexico, Brazil, India, China, Eastern Bloc.” Giffels has a Moscow office where it supplies logistics and industrial design to developers, including Russian-based investment and development company Coalco. It is with Coalco that Giffels is developing a speculative $400-$500 million US distribution warehouse containing 540,000 sq. meters called the South Gate Industrial Park. Giffels acquired 100 hectares of land for the industrial park from Coalco, which provides utilities and infrastructure for the site. Completion of South Gate’s first 700,000 sq. ft. building is scheduled for this September, with the second same-sized building scheduled for a beginning in mid2007, upon leasing of the first. The entire park is scheduled for completion by 2009. Giffels also has projects underway in Bahrain, Kiev (Ukraine), Hong Kong, Dubai, Abu Dhabi, Kuwait and Morocco. The global aspect of Giffels’ business strategy was strengthened last year in a message issued by Le Gresley and Victor Smith, CEO of Giffels’ Consulting & Development Services. In a co-authored statement, they reiterated that their strategic direction was to seek out new geographic markets and expand the range of services the company offers. “We believe that there are always good markets and good prospects for companies who are prepared to maintain a global perspective and continuously adapt to the needs of their clients,” they stated. “Diversity and global reach are essential components of a forward-thinking and dynamic business model. As a result we, as managers, must accept responsibility to continuously seek out new services and new locations.” While building its influence overseas, Giffels also keeps its eyes focussed closer to home. Meredig claims that Giffels has both a

From modest beginnings as an A/E firm in 1949, Giffels Design-Build Inc. has become one of the largest designbuilders in Canada, designing and managing the construction of industrial, office, retail, residential and institutional facilities worldwide. Its secret? Think global.

Building Strategies Spring 2007

Company Profile presence and an understanding of property markets large and small across Canada, from Halifax and Moncton in the east, the Greater Toronto Area and other sites in Ontario, to Calgary, Edmonton and Vancouver in the west. The company claims to maintain a substantial database of available land across North America and many of these sites it either owns or has an ownership interest in. Giffels sees this strategy as an element of control that helps guarantee the delivery of clients’ projects. “Complemented by a nationwide portfolio of land suitable for development across all product types, Giffels offers complete development services from land selection to turnkey corporate interiors,” Meredig adds. “Giffels’ growing list of national, US and international corporations attests to our sophisticated, timely and economically sound property solutions, for all project requirements.” But seeking and acquiring this new business can present some challenges. Current challenges the company faces at home and abroad include acquiring personnel properly equipped to handle the demands of such a large vertical corporation. “With offices in Calgary and Edmonton and BC,” says Meredig, “we are challenged – like most firms – to find good people, from both a consulting and design-build side.” To address this challenge, Ingenium at the time of writing was in the process of merging a 60-person firm, with offices in both Calgary and Edmonton, into its group of companies. The deal was to be ratified by the end of March 2007, and should help position the firm for further growth in western Canada. In addition to its overseas projects, Giffels is still keeping very active on the home front. Projects within the last 18 months include a 75,400 sq. ft. manufacturing, warehouse and office development for baking goods supplier Puratos. The site, which was secured by Giffels, will serve the Canadian market from its Mississauga location. Giffels was also successful in bidding on a 35,500 sq. ft. design-build contract for the “A” wing expansion to Sheridan College’s Trafalgar campus. In addition, in the institutional and sports and entertainment market sectors, Giffels has been successful in bids on the $20 million LaSalle Culture, Recreation and Family Leisure Complex, the 181,270 sq. ft. Oshawa Sports & Entertainment Complex, and the Northern Sports Centre for the University of British Columbia. Giffels and NORR are also involved in the redevelopment of an existing 30,000 sq. ft. 1950s industrial building as part of a threephase expansion to the Toronto Congress Centre. The project involves stripping away the existing front façade and installing an 800-ft. long fully glazed curtain wall. Giffels is responsible for the design-build of mechanical and electrical work, all work being executed under a construction management contract.

Building Strategies Spring 2007

Phase 1 is slated for completion in September. Growth at home and abroad may be a winning combination, but it’s not without its difficulties. With growth mushrooming from a staff of 450 in January 2003 to upwards of 1,200 with the new acquisition in western Photos courtesy of Giffels Design-Build Canada, “it’s a real challenge keeping up with the pace,” Meridig admits. Giffels is involved with Moncton’s first LEED office building – the third Emmerson Park office building. The building will serve as the pilot for all Giffels Design-Build projects across Canada. Referred to as “Emmerson E,” the building is located on 3.42 acres adjacent to Moncton’s downtown core. The new three storey state-of-the-art office building built to LEED standards will be Atlantic Canada’s first privately built LEED building and only the second certified building in New Brunswick notes Meridig. “Green buildings attract tenants who want to benefit from long-term energy cost savings and employee productivity gains associated with a ‘healthy building environment’,” he adds. It will occupy space at the corner of Millennium and Vaughan Harvey Boulevards in Emmerson Park, opposite the new YMCA. Emmerson E is also situated across from Emmerson A and B, twin office buildings that were previously designed and constructed by Giffels in 2003 and 2004, respectively. The scheduled completion date for the new building was February 2007. Giffels Design-Build has recently secured a competitive bid process for an 80,000 sq.ft. project to house the School of Liberal and Community Studies to be located at the Brampton campus of

Sheridan College. The project includes 14 classrooms, 13 mock labs, a large lecture theatre, faculty offices and student support areas. The firm was also recently awarded a 37,500 sq. ft. turnkey addition to Sheridan College’s Oakville campus. The project currently is under construction on a fast-track timeframe of 12 months, to be completed by the commencement of the 2007 fall term. George Friedman Architect provided the conceptual design; Giffels Associates Limited is architect of record. The GM Centre in Oshawa, ON, was initiated as a P-3 process and was constructed over roughly an 18-month period. It was completed November 2006. The City of Oshawa selected the Oshawa Sports and Entertainment Consortium (OSEC) of NORR, Giffels Partnership Solutions Inc., Giffels Design-Build Inc. and Maple Leaf Sports and Entertainment (MLSE) to design, build, and operate the 5,400 seat multi-use spectator facility Steven Evans Photography to rejuvenate the east end of Oshawa’s downtown. The 181,270 sq. ft. (16,840 sm) building is designed with an upper suite level with future expansion capacity for 1,000 additional seats. The complex includes a twostorey restaurant bar lounge with direct street access. It also houses the Oshawa Hall of Fame, party and private suites and group sales rooms. B

Controlling energy

costs and consumption

By Bryan S. Rogers

Lighting

While lighting is essential for daily activity, comfort and the well-being of occupants, it is arguably the single most energy-consuming item in a building’s budget, accounting in many cases for more than 30 per cent of the total electricity consumed in a commercial building. The advent of Compact Fluorescent Lights (CFL) has heralded a revolution in energyefficient lighting. Miniature versions of full-sized fluorescents, they screw into standard sockets, are four times as efficient as incandescents and use between 50 and 80 per cent less energy. Newer CFLs give a warm light instead of the “cool white” light of older fluorescents, and new electronically ballasted CFLs don’t flicker or hum. While higher in initial cost, CFLs offer reduced energy consumption over their lives – which can be 10 times longer in duration – which translates into reduced energy costs, lamp cost and labour replacement time. For optimum illumination of a space, lamp selection is based, among other criteria, on efficacy (lumens per watt), colour temperature, colour rendering index, life span and cost. Many T8 and T5 linear fluorescent and compact fluorescent lamps are now seen as viable choices for today’s buildings. Energy efficient, they also offer high colour rendering characteristics and long life. High frequency electronic ballasts with frequencies in the 20 kHz range and higher provide smooth, non-flickering lamp operation. Electronic ballasts also promote better lamp performance, extending the life of the lamp and improving its colour characteristics.

In commercial and industrial installations, linear fluorescent T5 HO (high output) lamps are now used in many high bay applications in place of high intensity discharge (HID), such as metal halide lamps. These smaller diameter lamps have replaced the T12 lamps that have dominated the market for the past 30 years. In addition, with fluorescents, lamp light output is increased. Compared with HID systems, at an operating temperature of 25°C, T5 HO fluorescent systems produce about 30 per cent more light per unit of electrical energy. At 35°C, the light output of a linear T5 HO improves by about 10 per cent, and T5 HO fluorescent lamps have proved to be about 30 per cent better than HID lamps in maintaining light output over their service life, up to 20,000 hours. Fluorescents also have a better colourrendering index. In colour-critical operations such as work with colour-coded components and products, errors are reduced and visual tasks are easier to perform. Energy Watch Inc., a Toronto-based electrical contractor focused on energy efficient lighting, also recommends replacing the two 15-watt bulbs in Exit signs with two one-watt LED lamps or strips rated at 25 years. “Put them in and forget them! The costs are $1.40 per Exit sign per year instead of an annual operating cost of $21.00 each plus you won’t have to worry that the Fire Marshall will inspect the building and find burnt-out signs.” For further information on energy-saving lighting products and services, suppliers include Philips, OSRAM Sylvania, Lithonia Lighting, General Electric, Cooper Lighting, Lightolier and Hubbell Lighting.

Buildings can be designed to operate with less energy than today’s average through a variety of cost-effective means – proper siting, building form, material selection and various heating, cooling and ventilation and daylighting strategies. Here’s a look at trends in energy cost savings developments in the lighting, HVAC and energy management controls sectors.

Building Strategies Spring 2007

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Building Strategies Spring 2007

HVAC

The most widely used type of air-conditioning system in industrial and commercial facilities are units sized from 19 to 73 kW (5.4 to 20 tons). A unitary air-conditioner is a factory-made assembly that normally includes an evaporator or cooling coil and a compressor and condenser combination. Unitary systems with one factory-made assembly are called single package systems; those with more than one assembly are called split systems. Currently, unitary air conditioning units (19 to 73 kW) sold in Canada are regulated by Canada’s Energy Efficiency Regulations and are required to meet minimum efficiency levels as specified in the Canadian Standards Association’s CSA C746-98, Performance Standard for Rating Large Air Conditioners and Heat Pumps, currently under review. In accordance with commitments made under the Montreal Protocol, the use of HCFC-22 as the refrigerant in unitary air-conditioning units will be phased out in new equipment by 2010. A number of manufacturers provide high-efficiency air-conditioning models that have significantly higher EERs (Energy Efficiency Ratios) than the minimum levels required under the Canadian regulations. A voluntary labelling program, Energy Star, encourages manufacturers to develop a set of specifications that enables buyers to identify these high-efficiency models. According to Natural Resources Canada’s Office of Energy Efficiency, high-efficiency unitary air-conditioning units provide the same reliable space cooling as standard efficiency models, but use up to 25 per cent less electricity. High-efficiency airconditioning units incorporate a number of features to reduce electricity consumption. These include: • larger condensers to reduce the condensing temperature and compression ratio; • condenser fans sized and shaped for efficient operation at full and part load; • improvement of heat transfer; • improved damper controls to ensure that maximum use is made of free outside cool air; and • high-efficiency motors and adjustable speed drives. While high-efficiency unitary airconditioning units typically cost 20 to 30 per cent more than standard-efficiency models, the reduction in electricity use will offset these costs in only a few years. One development in air-conditioning hardware being researched in the U.S. is a more efficient system designed using flattened tube heat exchangers replacing traditional round tube units. According to the Air-Conditioning and Refrigeration Technology Institute, Inc

(ARTI), the geometry of a flattened tube, compared with the traditional round tube heat exchanger, allows for improved heat transfer and thermal performance, increased coil and overall unit efficiencies, substantial refrigerant charge reduction, and more compact and reduced coil size. For further information on energyefficient HVAC products and services, suppliers include Lennox, American Standard, Carrier Corp., York International, and McQuay International.

Energy management systems

An energy management system typically consists of a network of intelligent energy meters linked to a centrally located server running energy management software. Each meter monitors a specific location or activity, while the software continuously retrieves and processes the information. For this reason, most ongoing trends in the energy management sector centre around software development and methods of communication. Typically, the distributed meters communicate with the centrallylocated software across the facility’s existing Ethernet-based local area network. However, if the operation is dispersed over any distance, then telephone and wireless systems can be used. Today, multiple permanent-mount meter locations can verify power quality around the clock through even more recent developments such as the Internet. In some cases, meters can use e-mail to send system updates or alarm notifications directly to facility personnel, or even host a built-in Web page accessible over any standard Web browser. Another solution combines fast desktop access to status information for the entire electrical system with the ability to receive early warning alarms anywhere by e-mail, pager or cell phone. Affecting everything from computers to controls and motors, the aggregate cost of power quality problems and disturbances is estimated at $300 million each year in the U.S. for continuous-process manufacturers. This obviously represents a considerable opportunity for improved energy-management performance through hardware and software innovation and early warning systems. For further information on energy management and control systems and services, suppliers include 360 Energy Inc., General Electric, Power Measurement, KMC Controls, EMS/DACS (Andover Controls), Honeywell, Johnson Controls, Delta Controls and Siemens. B

Building Strategies

Spring 2007

Volume 2 Number 1