September/October 2016 Vol. 13 No.6
VaNcOuVer HOuSe PM 40063056
Bill Downing, Structurlam ProDuctS ltD. PuBlic workS | EnErgy | tEchnology
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Inside 06 Connections
recognized as experts in engineered wood products, Structurlam Products is producing innovative clt clts that are changing the way buildings are being built and designed.
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September/october | Volume 13 no 6
PUBLISHER
Dan gnocato dang@mediaedge.ca
MANAGING EdItoR
cheryl mah
CoNtRIBUtING wRItERS
liezl Behm minister mike Bernier
the landmark Vancouver house is a bold mixed use project that took on the challenge of an irregular site to create a new building typology.
rebecca cleary Samantha cunliffe nicole Dunsdon helen goodland Jacob komar Sean Pander
Industry Focus
Steve rumley morgan tr t oke
16 technology
B.c. is north america’s new tech hub Exploring Solar technologie t s Expect more modular construction
B.C./ALBERtA tA SALES tA
Dan gnocato tel: 604.549.4521 ext. 223 t
20 Energy
moving to Zero Emissions Buildings Strategic Energy management Solutions Energy Efficiency in alberta
PuBliShED By
24 Public works
improving rapid tr t ansit capacity Eia ia Plans for Expansion investing in School Safety
Departments 04 Message from the Editor 27 the Legal file
Extra Support for Extra claims P3 Performance Bonds
30 Industry News
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Cover Photo
Vancouver house is a landmark project that will transform the city’s skyline. rendering courtesy of luXigon-Big.
FEBruary 15 & 16, 2017
construction Business is British columbia and alberta’s construction magazine. Each issue provides timely and pertinent information to contractors, architects, developers, consulting engineers, and municipal governments throughout both provinces. complimentary copies are sent bi-monthly to all members of the architectural institute of B.c., B.c. construction association, B.c. roadbuilders and heavy construction association, consulting Engineers of B.c., construction Specifications canada — B.c. chapter, greater Vancouver home Builders’ association, B.c. ready-mixed concrete association, independent contractors and Businesses sociation of B.c., urban Development institute of B.c. and Vancouver regional construction association.
noVEmBEr 9 & 10, 2016
march 21 & 22 2017
Editor’s Note
Smell the Roses
S
ometimes in my hectic schedule of meeting deadlines and pushing out magazines, I forget to “stop and smell the roses”, as the cliché goes. It wasn’t until mid-way of putting together this issue for press that I stopped to fully appreciate that both our project and profile stories are excellent ex examples of why B.C. is considered a leader not only in Canada, but in the world. Vancouver House is pushing the boundaries with its unique response to a challenging site at the north end of the Granville Street Bridge. Currently under construction, it will transform the city skyline with a new building typology, “creating an intelligent and sculptural form that is both purposeful and beautiful.” For our profile, we chat with Bill Downing, president of Structurlam Products. Downing
has a diverse background in manufacturing and has helped launch Structurlam onto the world stage with the introduction of cross laminated timber into Canada. Since then, the company has been making the impossible possible, completing a number of record breaking projects including Brock Commons at the UBC campus. It will be the tallest mass timber building in the world when it’s completed next year. Whether it’s bold architectural design or tall wood structures, B.C. is firmly establishing a reputation for construction and design expertise that is attracting worldwide attention. And we feel fortunate to be the local leading construction magazine, showcasing the many talented people and projects that shape our communities and cities.
Also in this issue, we focus on the areas of public works, technology and energy. The City of Vancouver is demonstrating environmental leadership again by approving the Zero Emissions Building Plan in July 2016. The city is striving to be at the forefront of energy efficiency by becoming the first city in North America with a plan for eliminating emissions from new buildings by 2030. It feels good to be leaders.
Cheryl Mah Managing Editor
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September/october 2016
Connections
Mass Timber Expertise in B.C. By Cheryl Mah
Brock Commons, UBC
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hen Bill Downing saw cross-laminated timber (CLT) for the first time in Europe in 2008, he was impressed. The large-scale, prefabricated, solid engineered wood panels have been used in Europe for more than 20 years, but would they work in the North American market? “We spent two years into early 2010 doing market studies and talking to architects and engineers... and decided we could bring the technology here,” says the president of Structurlam Products, a heavy timber manufacturer headquartered in Penticton, B.C. In 2011, Structurlam opened the first CLT plant in Western North America in Okanagan Falls, which was then further expanded in 2013. Since then, the company has firmly established its reputation as a leader in mass timber solutions. Structurlam is also one of only two companies in Canada to manufacture CLT. “We’re always pushing the envelope of wood design and wood construction,” says Downing. “The cross-laminated timber product has the potential to revolutionize commercial construction in Canada.”
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And indeed over the past five years, Structurlam has successfully created market demand for CLT and demonstrated the benefits of these massive timber panels to change the way buildings are designed and constructed. From its three plants in Penticton, Okanagan Falls and Oliver, they are making products for innovative and record breaking tall wood projects across North America. “Since we started running the press in 2011, we’ve been going strong continuously. We’ve done upgrades to it since, doubling the capacity for CLT products from when we first put it in,” says Downing, noting that the company had already starting moving to 3D modeling and extensive prefabrication. Linking 3D design to the specialized CNC (computer numericallycontrolled) equipment required for CLT production has been critical. Structurlam can manufacture CLT panels as large as 40 feet long, 10 feet wide and one foot thick. Glulam beams can be up to 120 feet long and are primarily Douglas Fir sourced from the Kootneys. “The biggest glulams we’ve ever done were for the Canmore Recreation Centre in Alberta
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— those were 110 feet long and 8.5 feet deep, weighing 35,000 lbs a piece,” says Downing. One of the most complex wood structure was the Art Gallery of Ontario which used 7,000 individual and unique members. Structurlam recently completed two more recording breaking projects: Brock Commons at UBC and Calgary’s Rocky Ridge Recreation Facility. The Rocky Ridge Recreation Facility features the world’s largest wood constructed roof in North America, covering approximately
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Connections Rocky Ridge Recreation Facility
300,000 square foot. The project required almost two years to design and produce with the roofing consisting of 2,000 wood members, where no two are the same. Brock Commons, at 18 storeys, will be the world’s tallest wood building of its kind when it’s completed in 2017. The student residence is the first mass wood, steel and concrete hybrid project taller than 14 storeys. The building has a concrete podium and two concrete cores, with 17 storeys of CLT floors supported on glulam wood columns. One of the main selling points for CLT is its speed of construction, according to Downing, and Brock Commons is a living example. The mass wood structure and facade was completed four months ahead of schedule. “We manufactured the panels to 1.5 mm in accuracy — virtually perfect. Everything was shipped down to the job site and installed. The use of very innovative connections allowed them to put up two floors a week. To see an 18 storey building going up that fast — with nine guys — drove home that huge speed benefit,”
says Downing, citing other significant benefits include seismic, acoustic, environmental and a lighter weight alternative to concrete. Prior to Brock Commons, the highest profile project for the company was the stunning sixstorey Wood Innovation and Design Centre in Prince George, completed in 2014. Designed to showcase the viability of tall wood buildings, it was previously the world’s tallest modern wood building. “It is still our largest CLT project to date by volume of fibre,” notes Downing. “It is also the project that proved Structurlam can prefabricate the complete structural shell of a tall wood building and ship it anywhere in the world.” The push for taller wood structures hasn’t come without challenges. A major hurdle has been building codes and getting projects approved. B.C. took the lead in Canada with building code changes allowing six storey wood structures in 2009. Other jurisdictions have since followed, with six storey buildings now adopted into the National Building Code. “We can go six storeys now, but not in every
jurisdiction. In Canada, you can use the alternate solution to build outside of the building code which is not ideal,” explains Downing, noting introducing CLT into the U.S. has been a slower process because of code restrictions. “Now we have received a new ICC report which allows us to use CLT as a floor diaphragm in the U.S. So we can start selling CLT to California, which we couldn’t have done without an ICC report.” This makes Structurlam’s CrossLam the only ICC approved CLT panel for lateral system design in North America. Indeed, CLT has been a game changer for tall wood buildings and interest continues to grow. Downing credits B.C.’s Wood First Initiative and organizations like FPInnovations and Canada Wood Council for helping to open up markets for commercial structural applications for wood. “When we first got our plant going, the B.C. government also funded three demonstration projects to use the product… so we’ve had lots of help along the way,” he says. “It took everybody working together with a common vision to educate specifiers primarily. Nothing happens in our world until an architect specifies wood.” Structurlam’s first mass timber project was the Elkford Community Conference Centre. Another milestone project was the UBC Earth Sciences Building. Downing says innovation and investment in technology have been key to Structurlam’s success. “It’s really exciting to be at the forefront and I’m so proud of the guys here and their ability to deliver these amazing buildings that push the envelope,” he says. Structurlam has a long history in B.C., founded in 1962 by two brothers to manufacture high quality glulam beams and columns. Over the years, the company’s innovative wood products have been used in many iconic projects including the Korean pavilion at Expo 67 and the world’s
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Connections biggest hockey stick at Expo 86. Award winning wooden structures such as the Richmond Oval and Vancouver Convention Centre have also put the world spotlight on the company. Since becoming president in 2007, Downing has been actively developing the market for CLT and ensuring the company can produce them efficiently and cost effectively. Bringing leadingedge equipment over from Europe has also been a core focus. “All our equipment is European. We won’t catch up on the machinery side but in terms of what we do with them — I think we’re their equals,” says Downing, noting they own the world’s biggest planer. With 30 years in the forest products industry, Downing has a diverse background in manufacturing and is excited about B.C.’s leadership in structural wood use. “We have some of the most amazing structures here already and we have all the ingredients,” he says. “We have manufacturers, fantastic architects and engineers who know how to build with wood, and the trades who can install the wood.” Born in Kaslo, B.C., Downing grew up in the Kootenay region where forestry has always been a big part of his life. He graduated with a degree in forestry from UBC and obtained a MBA from the University of Washington. As a registered professional forester, Downing began his career at Wynndel Box and Lumber Co in Creston. In 1990 intrigued by new mapping technology, he joined PCI Geomatics in Victoria where he held various senior positions. In 2001, he became the CEO of BC Wood Specialties Group, a not-for-profit industry trade association for the province’s value-added wood producers. After six years there, he decided to move back to the private sector and joined Structurlam in 2007, when Adera Group bought the family owned company.
Brock Commons, interior
Today Structurlam has 170 employees across its three facilities. While they manufacture a variety of products, 75 per cent of what they produce is project oriented. “In other words, if someone wants to build a new library or a city hall, we supply all the wood members for that. Everything’s prefabricated, finished and ready to go,” says Downing, who is now one of the four owners and very proud to be creating jobs in the Okanagan. Current projects include a six-storey expansion to the Lakeshore Resort in Penticton, a multi-family development in UBC’s Wesbrook Village and an eight storey condo in Portland, Oregon. The owner of the Lakeshore Resort is also proposing a 22 storey wood condo tower next to the hotel, notes Downing, and if that goes ahead, it will set another record. Although the majority of their projects have been in B.C. and Alberta, they have supplied about a dozen in the U.S. and a few in Asia. “The U.S. marketplace has great potential and we’re focused on expanding down south,” says Downing, who expects more competitors to come into the market.
The potential for CLT technology goes beyond constructing buildings. The company also makes an industrial matting product (an adhesive only solution) with the same technology. “I can see in the future doing packaging, concrete forming and things we haven’t even thought of yet. There are all kinds of application for these massive wood panels,” he says. The increase use of mass timber for mid and highrise projects is not without controversy. The concrete and steel sectors have both voiced their opposition. “At the end of the day, every single building we do is a hybrid — wood and steel, wood and concrete,” asserts Downing. “It’s about using materials in the best possible way.” As for the future, he is optimistic for further market growth. “I can see larger and more complicated buildings being built out of wood — things you wouldn’t expect to be built out of wood in the future,” he says, adding the structures being designed today were unimaginable only 10 years ago.
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2016-10-27 5:03 PM September/October 2016
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BIG Transformation
By chEryl mah | rEnDEringS courtESy y oF Big
Vancouver’s skyline has changed dramatically over the past 10 years with many new and architecturally innovative designs. And it’s about to undergo another major transformation when the highly anticipated Vancouver House is completed in 2019.
The bold mixed use project, designed by renowned Danish architect Bjarke Ingels in collaboration with local firm Dialog (architect of record), will feature a 52 storey signature tower on a 10 storey podium at the corner of Howe and Beach in downtown Vancouver. The twisting tower is touted as a “new building typology” to the skyline by developer Westbank Project Corp. that will break from the cookie cutter condos that have come to dominate the city. “We have brought together the best talent available in Vancouver and Europe to create a truly world-class project that will enrich not only the particular neighbourhood, but also the city and its quest to become a creative, sustainable and affordable city,” says Ian Gillespie, president of Westbank. The visually striking design is a thoughtful response to an irregular site that is challenged by its location at the north end of the Granville Street Bridge and the Howe Street on and off ramps. Due to setbacks from the bridge, the challenge was how to fit the density desired into the limited triangular footprint. “The now infamous shape of the building came out of a response to the allowable footprint at grade for where the density could be placed,” says Vance Harris, principal-in-charge at Dialog. “Then the idea was as you go above, the restriction no longer exists so the tower starts to expand out into the rectangular form at top. The constraint really led to an elegant design.” September/october 2016
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According to Ingels, Vancouver House was inspired by the Flatiron Building in New York City, and reclaims lost living spaces as the tower rises from its base. “In the tradition of the Flatiron, Beach and Howe’s architecture is not the result of formal excess or architectural idiosyncrasies, but rather a child of its circumstances: the trisected site and the concerns for neighbouring buildings and park spaces.” Ingels compares the resulting dynamic shape to a curtain being drawn back, “welcoming people as they enter the city” from the bridge. At nearly 500 feet (151 metres), the tower will be Vancouver’s fourth tallest building. The ambitious 650,000 square foot project also includes two other triangular shaped buildings (five storey and six storey) across the way at Granville and Pacific Streets (known as the Beach District) that will have retail at grade and office space above. The main signature tower will offer 407 market residential units while the 10 storey podium will have 95 market rental units and amenity spaces (gym and pool). In total, it will bring 80,000 square feet of new retail to the area and will be built with 609 vehicle parking stalls. “Fitting the layout of the residential units into a floor plate that changes on every level was a particular challenge,” notes Harris.”In a typical tower that has a continuous floor plate all the way up, there is some mixing of unit types. But on this project, every floor had to be designed as a one-off. Out of the 400 plus units, 12
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there are over 220 unique unit types. Within those types, there are quite a few variations as they go up the tower.” Ground was broken in 2015 and completion is expected in spring 2019. The 28 metre deep excavation required for phase 1 completed by Southwest Contracting Ltd. is the deepest internally braced shoring system of its kind in Vancouver. The main tower and podium is on track to come up to grade by mid-October once the seven levels of parkade are completed. To achieve the building shape, a unique structural system was required. Vertical post-tensioning was critical to making the project a reality — a first in Vancouver.
September/october 2016
“It’s still a concrete building but it employs a number of additional methods such as vertical post-tensioning and horizontal post-tensioning,” says Harris. “It was really a geometry exercise and a structural exercise — and the rigour around how you transfer the loads from high up in the building to down below where you have less of a footprint.” LMS Reinforcing Steel Group is supplying and installing the rebar and PT on the project. LMS project manager Cody Lake says what makes the project unique is the amount of rebar being used because of the building shape. About 10,000 tons (20 million pounds) of rebar will be used to build the triangular twisting structure.
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Bars, as thick as 67 mm in diameter, will be used for vertical post-tensioning. “Some of those rods go from P7 to level 35 — installing those will be a big challenge,” says Lake. “Once level 35 is poured, they take those rods and tension them to anchor the building down to the foundation.” Horizontal, post-tensioned slabs at each floor will also help to transfer the load to the core. The amount of work to be done and unique nature of the project will require LMS to run two full-time crews, one for the vertical work and one for the horizontal work, according to Lake. He estimates peak manpower will be around 35 workers. “The major part of the work starts on level 9 when the tower breaks off and starts tapering out — that’s when it gets tricky,” says Lake, who expects his crews to reach level five by end of 2016. Another challenge will be installing the structural steel header beams that are in the main elevator core, each weighing 9,000 pounds. “They are made out of structural I-beams instead of rebar and fitting them in will be the biggest challenge,” notes Lake. “With vertical PT and the I-beam headers, there is no room for error. In terms of where they are installed and how they are fabricated is very important to the integrity of the building.” While most towers will run their mechanical and electrical services in the slab, it was not possible in this project. “Because the slabs are post-tensioned and doing structural work, we can’t actually put anything into them. So all of that equipment is now mounted to the underside of the slab,” says Harris. “That brings a new level of day to day coor14
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dination that you normally don’t face. It’s really demanded all consultants bring their ‘A’ game to the table every day.” He adds, “Transferring utilities and plumbing lines that are coming down the building and finding routes for those while not adversely affecting the units below was quite an interesting challenge.” Designed to achieve LEED Platinum, the tower’s unique stainless steel facade is key to the overall sustainability concept. Each facade uses a high performing, triple glazed window system with all the balcony slabs completely wrapped in insulation and cladding. “This system has been engineered specifically for this building. It’s definitely not off the shelf,” says Harris, noting the wrapped balconies and triple glazed window system are not typical for the Vancouver market. “The system is very resilient in the amount of tolerance and adjustability you would get in a typical facade... to meet the demands of the building shape.” The distinct facade is similar to a brick pattern that Harris explains has several benefits, including allowing the facade to wrap around the corners in an elegant manner and creating passive overhangs. “It formally allows the rectangular form at the top of the tower to resolve into the triangular footprint in a very gradual and sensuous way by the slow sliding and shifting of the brick form pattern,” he says. Other green features include extensive heat recovery ventilation, highly efficient LED lighting, rainwater harvesting and green roofs. More than 75 per cent of materials will be diverted from landfill. In addition to pushing the envelope on the tower, the project consists of a major public
September/October 2016
realm component that seeks to change the area into a dynamic neighbourhood. The tower podium and two other buildings will create a mixed-use urban village at grade offering commercial, retail, recreational and public spaces. The space underneath the Granville Street Bridge will have five major frontages, bounded by Howe, Continental, Granville, Pacific and Rolston streets. “The whole ground plane has been envisioned as a common language of materials…so there’s a sense that you’ve arrived somewhere special,” says Harris. Still more than two years away from completion, Vancouver House has already earned international accolades with a number of awards. It won double honours at the prestigious 2015 World Architecture Awards, receiving the coveted Future Project of the Year award, as well as the Future Project — Residential Category award. The judges selected the project because it “generates an exemplar new urban typology.... that will impact positively on many future municipality and developer led agendas for cities across the world. The project demonstrates how architecture can successfully transform residual urban spaces by taking advantage of the air rights above, creating an intelligent and sculptural form that is both purposeful and beautiful.” Harris sums up, “There’s really nothing that isn’t unique on this project. It’s really raising the bar on what this city can expect from its architecture. It’s rewarding to be working on a project that has the support of the city, developer and a strong team. It sends a signal to the world that Vancouver is operating at a much higher level.”
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Please contact us through our website www.langleyconcretegroup.com
Technology
B.C. is North America’s new tech hub It’s time for the construction industry to get involved. by Helen Goodland
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ith more than 9,000 tech companies located across the province, B.C. is home to a vibrant technology community. Bloomberg Businessweek has called B.C. “the new tech hub” and a place offering “worldclass talent”. B.C.’s tech sector contributes about $15 billion in GDP, which is about the same as B.C.’s construction industry. Indeed, for B.C.’s tech companies, construction is a major market, which may be a surprise to many construction companies. Three of Canada’s clean-tech leaders are not only based in B.C. but also touch construction either directly or indirectly. Advanced natural gas engine-maker Westport Innovations sells to makers of construction equipment. Both wastewater treatment specialist BioteQ Environmental Technologies and renewable biofuel leader Nexterra Systems Corp rely on engineering and construction companies for successful implementation. 16
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Other local building-related success stories include Pulse Energy, which develops building energy management software (bought by US-based EnerNOC Inc. in 2014) and dPoint, which applies fuel cell technologies to HRV and ERV cores and recently acquired by European HRV giant Zehnder. All these companies are shining examples of B.C.’s technology prowess today, but that was not always the case. Unlike other places, B.C. does not have a construction industry innovation platform that can quickly and effectively connect construction-related technology developers to customers, clients and investors, then support them as they launch their products or services and scale up production. There are many other B.C. based technology companies in early stages of development today that could add value to construction companies and the projects they build. Any of them could be the next Westport, Pulse or dPoint such as certificate organizer WalletCard, low carbon building utility service provider eStream, fibre-optic IoT
September/October 2016
solution for base building networks Optigo and building information manager BuiltSpace. Start-up hotspots, such as the Discovery Parks in Vancouver and VIATeC in Victoria, are buzzing with new ideas. The soon-to-open Okanagan Innovation Centre is set to expand B.C.’s incubator footprint to the interior. Also, the Canada Accelerator and Incubator Program recently awarded over 1/3 of their national funding to accelerators located in Vancouver to help entrepreneurs build better tech companies. But none, so far, go sufficiently deep into the world of buildings (which includes civil and infrastructure) to be able to make the right connections to the right experts at the right time for construction companies to usefully benefit. Yet, the construction industry needs to embrace innovative solutions, and it needs to do so as quickly as possible. For example, the City of Vancouver has mandated that by 2050, all buildings must only use renewable energy. Of the total floor space that will comprise Vancou-
Technology
ver’s building stock in 2050, about 30 per cent has already been built, 30 per cent will be built between 2010 and 2020 and the rest after that. This means the way buildings are designed and built needs to change as soon as possible. To this end, the city’s Zero Energy Buildings Plan states that by 2020, new buildings, on average, should emit 64 per cent less CO2 as compared to current rezoning policy outcomes (which some argue are already challenging to achieve). This is less than four years away. A whole host of local technologies and services could be valuable in helping to achieve these goals — such as prefabricated building elements (made by B.C. PassiveHouse or Britco), high performance windows made by Cascadia, state-of-the-art visualization software powered by CadMakers and project documentation organized by MultiVista and all procured using the BidCentral online procurement platform from Infinite Source Systems Corp. (ISSC). The city’s green goals offer a tremendous opportunity for innovation. However, for new technologies to be accepted by the market, they need to be tested and refined in “real-life” situations. But experimentation in the context of a construction project is rife with challenges. Anything that could adversely affect the project schedule and budget is problematic and there is a very low tolerance for risk of failure.
Recognizing these barriers, the City of Vancouver has launched the Green and Digital Demonstration Program to provide support to start-ups in the clean technology and digital sectors. Selected participants in the program gain temporary access to city-owned assets (e.g. buildings, streets or vehicles) for technology demonstrations and proof-of-concept trials. The program offers participating entrepreneurs a chance to leverage their demonstration site and use the city as a reference when
There is tremendous opportunity for the tech sector and building industry to work closely together. marketing their products and services. But, while this is an excellent start, the program is only open to Vancouver-based companies. So, a province-wide construction innovation centre that can build on programs like this is being considered by the B.C. Construction Association. In fact, associations like the BCCA could be huge assets in advancing construction innovation. They can serve as industry entry points for
entrepreneurs, establish networks, find opportunities for testing technologies for application and provide information on market trends and technology needs. To get started, a series of “innovation bootcamps” will be rolled out across the province starting in October. Run by the Vancouver Regional Construction Association, Vancouver Island Construction Association, Southern Interior Construction Association and the Northern Regional Construction Association, these programs are designed to help construction companies get ready to engage with technology and innovation. There is tremendous opportunity for the tech sector and building industry to work closely together. For tech companies, they get access to markets, valuable expertise and, potentially, investors. In turn, construction companies can fast track the adoption of technologies and solutions needed to meet new performance standards, improve efficiency and (most importantly) enhance their reputation. After all, when it comes to attracting the workforce of tomorrow, no company can be cool enough. But, like jazz, technology can make you cooler. Helen Goodland, RIBA MBA, is principal of Brantwood Consulting and co-founder of Building Technology Innovations.
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September/October 2016
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Technology
Exploring solar technologies
A CULTURAL SHIFT Sarina has been building and participating in the BUILT GREEN certification program for six years. Built Green Canada is a national organization working with residential-builders interested in developing sustainability practices. “Building green is totally integrated into the culture of Sarina,” says Joel Tiedemann, the project manager at Sarina Homes. “Installing solarphotovoltaic systems is something that isn’t being done by many inner city developers.” Four individual four-plexes in the heart of Calgary’s popular Kensington community — 16 living units in total — served as the perfect testing ground. When the project began, they were all being built on the north side of Kensington Road NW, within two blocks of one another. “We researched, procured and installed four systems and monitored their performance over one year,” says Jackman. “The original intention was to have two buildings use a common system shared across four units, but Alberta’s regulatory framework doesn’t allow for that.” He says the Government of Alberta’s MicroGeneration regulation, which has remained the same since it was issued in 2008, is currently under review. “They’ve been receiving input on what’s called ‘community solar’ for several months and will release their findings at the end of the year,” anticipates Jackman, who ultimately ended up installing individual solar PV systems for each individual unit. “That was the first learning; we can’t yet put a central system in for multiple units, but it would definitely be cheaper,” says Jackman. 18
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labour
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arina Homes is committed to building green. But two years ago, when it came to exploring the viability of solar power systems for its inner city townhomes, the Calgary-based homebuilder was “in the dark.” To shed some light on its initiative, Sarina decided to undertake a research project with Green Building Technologies (GBT) researchers at the Southern Alberta Institute of Technology (SAIT); specifically, with solar researcher Tom Jackman. Working in partnership with Sarina Homes, Jackman undertook a two year, $135,000 plus research project — partly funded by the Natural Sciences and Engineering Research Council of Canada. The goals were to identify the best solar photovoltaic (PV) equipment for multi-family applications, understand the installation costs of different systems, monitor energy generation, and document building design and practice adaptations to accommodate solar integration.
Equipment
By Nicole Dunsdon
SYSTEM 1
SYSTEM 2
SYSTEM 3
SYSTEM 4
Racking
Fabricated steel strut
Conergy 30 degree
Steel tree steel joist
Schletter 45 degree
Micro inverters
Enphase m215 IG
Enphase m215 IG
APsystems Y500 dual
ABB
Modules
CS 250 watt
CS 250 watt
CS 300 watt
CS 300 watt
Total equipment costs
$10,622
$11,857
$14,643
$14,439
Hours Costs
134 $2,682
179 $3,400
105 $2,095
81 $1,619
Installation 1 Installation 4
58.4 hours 19.9 hours
56.3 hours 32.3 hours
31 hours 22 hours
21.8 hours 18.3 hours
Total installation cost
$6,998
$8,166
$7,446
$5,204
Average annual energy offset provided by the solar array
45%
41%
29%
39%
Learning curve
WHAT WORKS? SAIT researchers selected four combinations of racking, panels and micro inverters to test. “We did the procurement based on price, availability and reputation for performance,” says Jackman, adding that all four systems were very similar in price. Sarina staff, GBT researchers and SAIT electrical apprentice students worked together to install the solar PV systems. “With the help of the research funding — which covered installation, monitoring and labour — the solar systems resulted in about a $10,000 to $12,000 additional cost to the homeowners,” says Tiedemann. “Without the research funding, it would have definitely been more.” In fact, according to Jackman’s data, installation costs ranging from $5,000 to $8,000 would be tagged on to that price. It turns out that the choice of racking system made a big difference. Jackman says some racks come partially assembled, some have more components than others, and some are pre-assembled on the ground then lifted into place with a crane. These characteristics impacted not only installation and labour costs, but also energy performance. “Getting the angle and orientation of the array was really key. When we tweaked the angles on the install, that had a big impact on energy generation,” says Tiedemann, adding that a moveable rack would be ideal, to allow for changes in the angle of the sun over different seasons. Once each building was outfitted with its particular systems, SAIT began collecting data on energy generation and usage. GBT researchers in SAIT’s Applied Research and Innovation Services department had developed an analytics matrix for comparative review. “That was a large component of the research,” says Jackman. “All of the systems ended up work-
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ing about the same. The biggest variation was on the consumption side.” Data showed that, depending on the occupants (single and rarely home versus families who spend time at home) the variance was surprising. “Our lower-use consumers used 300 to 400 kilowatt hours a month and higher-use consumers used up to 1,000 to 1,200 kilowatt hours a month,” says Jackman. “And they all think their consumption is ‘normal.’ It highlights that most homeowners may not fully understand energy or their own energy use.”
THE FUTURE Not only did the project educate the homeowners, it also allowed Sarina to fully understand the costs and processes associated with solar system installation and gauge consumer interest. “We’re not at the stage where we could offer solar systems to the market as a standard,” says Tiedemann, but in preparation for that day, the company now knows what it needs should homeowners start demanding the technology. “A project like this takes the mystery away,” says Jackman. “Builders realize that they can do this. It no longer feels like they’re opening up a scary black box of unknowns.” Tiedemann says Sarina will continue to explore green building technologies. “We are going to keep pushing the envelope and investigating non-traditional practices in our buildings. For example, we’re talking to SAIT about rainwater harvesting and grey-water re-use,” he says. “We’re building a base of knowledge so that, when market demand is there, we can incorporate these sustainability elements on a wider scale.” Nicole Dunsdon is communications manager, corporate development and applied research at Southern Alberta Institute of Technology.
Technology
Expect More Modular Construction
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dvances in available and emerging technologies offer significant opportunities to improve construction efficiency substantially in the 21st century and to help meet other challenges, such as environmental sustainability. Modular construction is one such technology pushing boundaries, offering several advantages over conventional construction and has been called the “the future of construction.” Prefabrication, preassembly, modularization, and off–site fabrication involve the fabrication or assembly of systems and components at off-site locations and manufacturing plants. Once completed, the systems or components are shipped to a construction job site for installation at the appropriate time. These techniques offer the promise (if used appropriately) of lower project costs, shorter schedules, improved quality, and more efficient use of labour and materials. But various obstacles stand in the way of the widespread use of such technologies, including building codes that hinder innovation as well as conventional design and construction processes and practices. A whitepaper published by the Modular Building Institute cites a report by the National Institute of Standards and Technology (NIST) and the National Research Council (NRC) that identifies modular construction as an underutilized resource and a breakthrough for the construction industry to advance its competitiveness and efficiency. “This report validates what we in the industry have long known; that a greater use of off-site construction leads to improved efficiency and productivity,” said Tom Hardiman, executive director of the Modular Building Institute. “Modular construction is a more resource efficient, inherently greener process and more developers and owners are beginning to realize these advantages.” According to the report, modular construction methods have been shown to be inherently advantageous in several major areas: Less Materials Waste Pre-fabrication makes it possible to optimize construction material purchases and usage while minimizing on-site waste and offering a higher quality product to the buyer. Bulk materials are delivered to the manufacturing facility where they are stored in a protected environment safe from theft and exposure to the environmental conditions of a job site. Less Material Exposure to Inclement Weather Many of the indoor air quality issues identified in new construction result from high moisture levels in the framing materials. Because the modular structure is substantially
Example of a factorycontrolled environment.
completed in a factory controlled setting using dry materials, the potential for high levels of moisture being trapped in the new construction is eliminated. Less Site Disturbance The modular structure is constructed off–site simultaneous to foundation and other site work, thereby reducing the time and impact on the surrounding site environment, as well as reducing the number of vehicles and equipment needed at the site. Safer Construction Modular construction is a safer alternative. Conventional construction workers regularly work in less than ideal conditions dealing with temperature extremes, rain, wind, or any combination of natural conditions. This, by its very nature, is a much more challenging environment to work safely in. Additionally, the potential for injury including falls, the most common work site risk, is much higher. In a factory controlled setting, each worker is typically assigned to a work station supplied with all the appropriate equipment needed to provide the safest work environment possible. Off-site construction also eliminates the hazards associated with materials, equipment and an incomplete construction processes typical of construction sites that can attract curious and unwelcome “visitors” (i.e. students on a school expansion project).
Flexibility When the needs change, modular buildings can be disassembled and the modules relocated or refurbished for new use, reducing the demand for raw materials and minimizing the amount of energy expended to create a building to meet the new need. In essence, the entire building can be recycled in some cases. Adaptability Modular buildings are frequently designed to quickly add or remove one or more “modules,” minimizing disruptions to adjacent buildings and surroundings. Built to Code With Shorter Build Times The bottom line is that with modular construction you can get a facility built to the same local codes with construction quality as good as or better than a comparable site built building in much less time. Additionally, the abbreviated construction schedule allows you to get a return on your investment sooner, while minimizing the exposure to the risks commonly associated with protracted construction schedules. The Modular Building Institute’s white paper Improving Construction Efficiency and Productivity with Modular Construction includes portions of “Advancing the Competitiveness and Efficiency of the U.S. Construction Industry,” a NIST/NRC study. The full report can be found at modular.org
September/October 2016
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Energy
Moving to Zero Emissions Buildings By Sean Pander
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n July 2016, Vancouver City Council approved the Zero Emissions Building Plan (the Plan) and in doing so has shifted the emphasis of building policy and regulation for new construction in the city away from energy efficiency in general towards operational greenhouse gas reduction specifically. The Plan includes four main strategies to transition all new construction in the city to zero operational greenhouse gas emissions by 2030. This may appear as an audacious goal but Vancouver is well positioned to take a leadership role in transitioning North American design and construction practices towards new buildings that emit virtually no carbon pollution. Currently 98 per cent of electrical power used in British Columbia is supplied by renewable sources such as hydro, micro hydro, wind and biomass. In addition, Vancouver’s mild climate means that the need for heating and cooling are lower than most other North American jurisdictions. The challenge in Vancouver is making this transition in such a way so as to maximize local economic development without negatively impacting housing affordability.
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Stepped Limits for Greenhouse Gas Emissions and Heat Loss The first strategy in the Plan calls for the establishment of limits for GHG emissions and heat loss (per m2) for major building typologies. These limits will be stepped down between 2017 and 2030 through periodic amendments to Vancouver’s Rezoning Policy for Green Buildings and its building bylaw. The Plan includes interim targets to reduce emissions from new buildings by 70 per cent by 2020 and 90 per cent by 2025 as compared to the 2007 baseline. The Plan primarily focuses on residential construction as it represents 82 per cent of new development in Vancouver by building area. Residential building owners typically lack the expertise required to ensure that complex mechanical systems have been properly commissioned and maintained. As a result, the Plan emphasizes two main approaches to ensure GHG reductions are reliably achieved and sustained in new construction. New buildings will be required to either minimize
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building envelope and ventilation system heat loss or will be required to connect to a district energy system that uses primarily renewable energy while making more modest improvements in building efficiency.
Public Sector Leadership Industry consultation and global best practice research indicated that regulatory approaches alone would not be successful. The rapid evolution of local design expertise, the supply of cost competitive high performing building components, and changes to common construction practice require that we start building zero emission buildings in a wide range of contexts immediately. As a result, the second strategy is to require all new city-owned and Vancouver Affordable Housing Agency buildings to achieve as close to zero emissions as feasible. Given the Plan’s emphasis on reducing envelope and ventilation heat loss, new city buildings will seek to achieve Passive House certification, the leading global standard specifically developed to meet these objectives.
Energy
Private Sector Incentives The third strategy is to provide incentives to leading developers and builders who demonstrate cost effective approaches to achieving zero emissions for new construction. In adopting the Plan, council committed an initial $1.6 million for incentives for voluntary leadership in building zero emissions new homes and townhouses. Staff are exploring additional tools and resources to catalyze zero emissions leadership in multi-unit residential buildings, potentially using approaches such as expedited permitting, permit fee or property tax discounts, etc.
Capacity Building The fourth and final strategy in the Plan is to invest in design, construction, and permitting capacity building. Early private and public sector leaders will be encouraged to share their insights about successful approaches and barriers encountered. Incentives will be connected to the development of design and post-occupancy case studies as well as the presentation of lessons learned to industry peers. Towards this end, council has committed an initial $700,000 towards the establishment of a nongovernmental Zero Emissions Building Centre of Excellence to facilitate dialogue and access to expertise and training to serve not only Vancouver but the entire region.
As an early capacity building action, permitting and building inspection staff are being provided with training in high performance building envelope design and construction approaches and the Passive House standard. In addition, city policies have been updated to allow floor space exemptions for increased wall thick thickness and roof height to accommodate the higher levels of insulation required.
...council [has] committed an initial $1.6 million for incentives for voluntary leadership... the first Step Draft policy and regulatory changes reflecting the first step in the limits on GHG emissions and heat loss for multi-unit residential buildings as called for in the Plan have been developed. Anticipated design responses to the changes include a reduction in exposed concrete and other thermal bridges, simplification of heating systems, and the use of direct ventilation and heat recovery ventilators.
Staff are currently consulting with impacted stakeholders for input. Recommendations to City Council on these changes will be made in late 2016 or early 2017 but no significant new requirements for detached houses are anticipated prior to 2020 as the efficiency requirements for this building type were improved significantly in the 2014 building bylaw. The proposed new requirements will provide for improved alignment between similar building types, seek to streamline requirements to focus on priority outcomes, provide developers with flexibility in achieving the limits, and simplify administrative requirements. The changes are not anticipated to materially impact construction or operating costs, but will reduce GHG emissions by more than 50 per cent for multi-unit residential buildings. In addition, the changes are expected to lead to improved indoor air quality and comfort while simplifying building operations and maintenance. Sean Pander, the City of Vancouver’s green building manager, leads the city’s development of policies and industry partnerships to transform how new buildings are developed to reduce their carbon footprint while maximizing their functionality, health, and comfort. For more information, http://vancouver.ca/green-vancouver/renewable-buildings.aspx.
September/october 2016
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Energy
Strategic Energy Management Solutions By Cheryl Mah
A
growing population, increased business and use of technology mean rising demand for power, but that demand is being supplied by an aging infrastructure. Many regions are facing expensive upgrades, expansions and large replacement costs. New technologies and strategic management solutions, however, offer opportunities to address that demand while decreasing capital costs and contributing to the greater good of the environment. The energy commodity industry is rapidly changing in dramatic ways. While electrical costs in B.C. are relatively low, they are rising continuously and so is demand on the grid. There is a real opportunity to manage and approach energy consumption with new technologies such as lighting, controls, energy storage and renewable generation. “Technological advances in smart technology — sensors, computer intelligence — are changing our world,” said Bob Dowbiggin, director of sales, western region, ONEnergy Inc., at Buildex Vancouver 2016. “We now have the ability for real time measuring, manipulation and management of data.” He discussed several examples of technology such as biometric sensors, LED lighting and LiFi (new wireless technology which has been tested to be 100 times faster than Wi-Fi). He said it was important to recognize the potential of new technologies and leverage them to address today’s challenges and to meet energy demand of 22
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a growing global economy while reducing environmental impact. LED lighting is the easiest way to cut energy consumption in any building and improve efficiencies, noted Dowbiggin. LEDs lend itself to control, manipulation and integration into system for both new and existing buildings. He also discussed the efficacy or the output per watt of LEDs which surpasses other technologies and is projected to improve significantly. By 2030 the average lumen per watt is projected to reach 200 plus, he said, adding the average lifespan is also forecast to double. When it comes to solar power, the technology is now more cost effective, efficient and can make a good business case. The cost is expected to fall another 40 per cent in the next two years, said Dowbiggin. Today, the cost of an installed system anywhere in Canada has dropped to $2 per watt from $10 per watt five years ago. The price is also coming down for wind power. In Europe, vertical wind turbines are even being used as an advertising medium, which make them more cost effective, he said. Dowbiggin said challenges exist with large scale horizontal access wind turbines but vertical access wind turbines are starting to become a feasible supplement in renewable energy. Several cities across North America have made ambitious commitments to use renewable energy, noted Dowbiggin. Vancouver is one of the world’s first cities to adopt a plan to shift to 100 per cent renewable energy by 2050. San Francisco is tar-
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geting 2020 to be 100 per cent renewable. “Aspen Colorado is already 100 per cent renewable with 53 per cent wind, 46 per cent Hydro and one per cent landfill gas,” he said. Another viable technology is energy storage, which has come a long way in the last five years, according to Peter Gibson, director, LG Chem, a leading battery manufacturer. It could be an asset for demand management, load shifting and used as a backup generator in place of standby units. Technology developed for automobile applications, such as advanced lithium-ion batteries, is heavily influencing the stationary energy-storage system market. He cited the success of Tesla as an example and also discussed energy storage globally. All provinces in Canada are looking into how to benefit from energy storage but there are no incentives yet for storage behind-the-metre systems, he said. In B.C., the Clean Energy Act sets a target for BC Hydro to meet 66 per cent of the province’s incremental electricity needs through efficiency and conservation by 2020. BC Hydro’s Michael Travers, Power Smart Alliance manager, said the Crown corporation works closely with both industry and government for solutions and incentives. But he admitted that while BC Hydro is a good starting point to access information on energy conservation, it has limited expertise and resources. Technology is a huge part of energy management, but it is people and process that determine how that change happens, said Travers.
Energy
Energy Efficiency in Alberta By Jacob Komar
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lberta has adopted the National Energy Code for Buildings (NECB) 2011 edition into its newest building code. The coming into force date for the new energy code is November 1, 2016 and it will have significant impacts on how buildings are constructed in Alberta, but not for the reasons you might think. While most people are aware of the changes, a majority still don’t realize the full impacts that the new building code will have on building designs. Fortunately for building owners and designers (and unfortunately for energy efficiency in Alberta), the energy and cost impacts of the code for the majority of building types are not significant. There are three paths available to achieve compliance: prescriptive, and trade off (follow the prescriptive requirements but trade between them) and energy performance compliance.
Prescriptive Paths The prescriptive path is definitely the easiest path to understand and requires the least amount of expertise, but also offers the least amount of flexibility. The prescriptive requirements (for all sections) must be followed exactly and might prove challenging to meet. For example, the energy code provides prescriptive requirements for the effective envelope thermal transmittance values which must be matched to achieve compliance, as seen in the chart (Edmonton and Calgary fall under Zone 7A). Any keen observer will notice that the required thermal resistance values are about double that of what is typically constructed in Alberta at the moment (again, these are effective not nominal R-values). For this reason, we do not recommend using the prescriptive or trade-off paths (which do offer more flexibility but not nearly enough).
Energy Performance Compliance Path The building energy performance path is definitely the compliance path that requires the most expertise (as it requires building energy modelling)
but is also the most flexible and will likely be the path chosen by most design teams. For most projects this is the compliance path that will be the most cost effective compliance path. The reason for this is quite simple. While the envelope section of the code is very stringent, many other sections of the code (lighting, HVAC, glazing) are very weak. Because the performance path looks at the energy use of the entire building, any efficiencies (over the reference building) in the lighting, HVAC and service water heating sections can be used to offset the requirements of the envelope section (this isn’t allowed in the trade-off paths). For example, the prescriptive requirement for the thermal transmittance of fenestration is 2.2 W/m2K. This equates to essentially a clear single pane window with aluminum frames. Clearly, this is not difficult to improve upon. So a typical dual pane window with an effective overall U value of 1.6-1.7 W/m2K (including frame) will be significantly better; this energy savings can be used to reduce the envelope requirements. Similarly, the prescriptive lighting requirements are extremely weak from an energy perspective. For example, the reference lighting density requirement for an enclosed office is 11 W/m2. Even second generation T8 lighting can get below this level (<10 W/m2). LED bulbs are becoming pretty standard now in most building which means that a realistic lighting level is closer to 6 W/m2. Therefore, a typical savings in lighting energy can easily be 40-50 per cent and as before, this savings can be used to reduce the envelope requirements. In fact, based on our analysis, some building types will meet the requirements of the code without changing anything at all. That being said, for some buildings types (warehouses, car dealerships) even these so called “performance path freebies” will not be enough.
Conclusion It should be clear that the performance path will be the preferred path for most buildings. It allows the most flexibility in the building design
and allows you to take advantage of efficiencies from other systems to offset envelope requirements. Because of the nature of the compliance path, energy modelling is a requirement for projects wishing to go this route. However, if the building is already going after LEED or other rating system compliance, the energy model used for the rating system compliance can be adapted and used for NECB 2011 compliance with relative ease; thus not requiring a brand new model. Either way, energy modelling is the best way to guide a project to its energy target, and this is even more true now considering the implementation of the new energy code. Energy modelling from an early design stage is the best way to provide a cost-effective design under NECB 2011 and gives the design team much more flexibility in all aspects of the building design. While this is mostly good news for building owners, it certainly is not great news for energy efficiency in Alberta. There are simply too many “performance path freebies” in the energy code to make real gains in the province’s energy efficiency. One might hope however, that because teams are driven to use energy models for compliance, they might start using energy modelling as a design tool, which is the best way to optimize building performance. This might just be the biggest change to the way buildings are built in some time, and this is very positive for the industry. In terms of energy efficiency, one can only hope that future versions of the NECB are implemented quickly (NECB 2015 is already published) or that the province moves to a performance based standard similar to those used all over Europe (removing all or most of the prescriptive requirements and moving to an energy use intensity requirement of 80 kWh/m2 for example). Either way, at least Alberta has finally taken its first small step towards energy efficiency. Jacob Komar, P.Eng. is a principal at Revolve Engineering Inc. and a specialist in high performance building design.
September/October 2016
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Public Works
Improving Rapid Transit Capacity
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he Main Street–Science World Station is the oldest station on TransLink’s rapid transit system. Built in 1982 and located beside Science World, it’s now one of the busiest stations on the system. The station was identified as a priority for upgrades as it was in need of important accessibility upgrades. TransLink engaged Graham Construction and Engineering as a partner in the integrated design process. Graham provided project leadership, design-assist, constructability, value engineering, and risk reduction strategies including scheduling and sequencing recommendations. This project involved the expansion and renovation of the existing Main Street SkyTrain Station. A new East Stationhouse was constructed, and the existing West Stationhouse was renovated. Working in and around an operating skytrain station was a main challenge for the project team with restricted time windows to get the work done. It required a carefully planned system of communications developed by Graham for this project, which have now been customized and adopted by TransLink for all station and system upgrade work as standard practice. TransLink began upgrading several Expo Line stations in 2013. The $164 million station upgrades are necessary to accommodate increasing passenger volumes, meet accessibility commitments and improve the customer experience. The other stations include New Westminster, Joyce-Collingwood, Commercial-Broadway, Metrotown, Scott Road and Surrey Central. The seven station upgrades were funded by TransLink and the federal and provincial governments.
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September/October 2016
Public Works
EIA Plans for Expansion The Edmonton International Airport is ensuring infrastructure will meet growing demand. By Steve Rumley
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usiness has slowed in much of Alberta since the price of oil plummeted in 2015. But many organizations are taking advantage of lower costs and available labour to complete capital projects. Edmonton International Airport (EIA) is no exception, moving forward on a number of large-scale projects that will in the long run increase efficiencies and revenue for the airport. EIA is investing resources into both commercial developments and infrastructure as part of a larger plan to develop an aerotropolis (or airport city) on its vast 7,000 acre land holdings, the largest of any major Canadian airport. In 2012, Alberta was facing a recession as well, though not as pronounced as the current one. EIA moved forward with plans on a $1 billion terminal expansion project, which ended up costing $300 million less than forecast. A similar point of view is currently held when looking at infrastructure projects. Since the 2012 expansion, the airport has turned its sights outwards from the terminal, aggressively targeting investors and developers that complement one another. One of the main target industries is aerospace education and training. Two multi-million-dollar flight simulation projects have been completed at EIA: Canadian North’s 737 flight simulator and Canadian Helicopters’ helicopter training simulator. Both are industry leading and certified for pilot training. Major global players that have recently come on board include Aeroterm, Rosenau Transport and the developers behind the massive 585,000 sq. ft. premium outlet collection, Ivanhoé Cambridge and Simon Property Group, planned for opening in 2017. This development will be a catalyst for future development, much of which is already planned, such as big box retail, restaurants, hotels and office space. The outlet collection will be a draw for regional passengers to fly out of EIA, as well as position the airport as a destination for inbound tourism. This increase in tenants naturally brought an increase of vehicle traffic to the airport. Strategic planning accounted for this increase years in advance, which allowed work to be started on a complete redesign and upgrade of the main access road to the terminal and surrounding properties. The design of Airport Road hadn’t changed significantly in the 50 plus years the airport has been in service, undergoing routine maintenance and utility improvements, but no significant restructures. In 2014, work began on a multi-year, multi-million dollar improvement project designed to improve safety and traffic flow and to accommodate increased volumes of commercial and general traffic as the airport and developments around it expanded. Initial planning took place between EIA’s infrastructure and operations teams, building services firm MMM Group (since acquired by WSP Global) and the provincial government’s transportation department. The airport’s land holdings fall just short of the project scope, which includes an on and off ramp connecting Airport Road to Alberta’s busiest highway, the Queen Elizabeth II. Because of this, it was imperative that EIA work closely with Alberta Transportation on all phases of this construction. Prime contractor on the project is Dufferin Construction, who has been prime on a number of projects at EIA in the past, including all the runway and apron work during the major expansion in 2012. Due to the scope of this project, it had to be divided into multiple phases, as to prevent any major impediments to inbound or outbound traffic. As a result of this phased approach, the following deliverables have been or will be completed on schedule: • Lane widening from single separated to double and triple in some locations. • New highway on-ramp • Introduction of two new controlled intersections — improving access to surrounding communities as well as the airport
• Extending the highway off-ramp 300 metres, and splitting it from a twolane to a five-lane configuration. The majority of this extensive roadwork project is expected to be completed by the end of 2016, with a final completion date mid-2017, despite challenges created by delays from the temperamental Albertan weather and difficulties reaching agreements with certain stakeholders, such as pipeline companies that have imposed restrictions on how work may be conducted over their lines. Nevertheless, the project is nearing completion, and the benefits of it and other developments are already visible. Making land-to-air transportation easier and more accessible for importers and exporters delivers on one of the airport’s core business strategies: driving economic growth for the region. These expansive developments have also benefited EIA’s core business — air service. The infrastructure and on-site developments have helped attract Air China Cargo to offer the only scheduled cargo freighter between mainland China and Canada, opening the entire western Canadian export market to Chinese trade. As expansion continues for EIA’s business, additional infrastructure upgrades will be needed, and planning has been underway for a number of years. For projects of this scale, it’s essential. In the coming years, EIA is planning on building a third runway to accommodate growing passenger volumes and collaborating with the City of Leduc to build a new interchange connecting the south end of the airport property, which will eventually house large format development, to the north end of the growing industrial community. Steve Rumley is the vice president of infrastructure at Edmonton International Airport. He brought his technical expertise to successfully complete the $700 million EIA terminal expansion project in 2012, which has earned awards from Consulting Engineers of Alberta (Award of Merit) and Canadian Consulting Engineers (Award of Excellence). September/October 2016
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Public Works
Investing in School Safety By Minister Mike Bernier
School district staff, officials, construction representatives and Education Minister Mike Bernier on a tour of the $20 million Delta Secondary school seismic upgrade project.
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he safety of B.C. students is a top priority. That’s why the B.C. Government has spent more than $1.1 billion to seismically upgrade or replace 155 public schools through the Seismic Mitigation Program — work that B.C.’s construction industry has helped deliver on time and on budget. We are working hard to make sure everyone who calls a school their home away from home is safe — and we are doing our best to protect the physical assets that generations of British Columbians have paid for. When the program launched in 2004, all schools in B.C. built before 1992 were assessed to determine their seismic risk and every school deemed high-risk was put on our upgrade list. Everyone in the construction industry knows about scope, scale and budget — and since 2004 we’ve been refining that across the province. We’ve worked with school districts to determine the most pressing needs and the projects that can have the biggest impact improving safety. At present there are 342 schools on the list with 155 of those complete and 69 in progress. As we continue to learn more about how earthquakes affect our coast, we continue to reassess our schools and may reduce or increase their risk ratings accordingly because we are working with our partners at the Association of Professional Engineers and Geoscientists of BC to get the best possible data. We learn from experiences around the world and the science can add or subtract schools from our list. Seismically upgrading schools is all about collaboration between districts and the Ministry of
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Education. It also requires a solid commitment, plan and determination to complete these vital projects as quickly as possible. A prime example of this is the Victoria school district. Victoria is taking charge and putting students first with all of their seismic projects now complete. Campbell River is also a leader, having just moved their last seismic project forward. North Vancouver and Delta school districts are also making great progress, being just one project away from completing their upgrades. We know that seismic upgrades strengthen the school community and make classrooms safer for students, but there’s more to it than that. In many cases these projects also refresh and update schools, giving students, staff and teachers a more inviting, modern and safe learning space. Over the last couple of years, government has made some big investments in school seismic upgrades. For example, we just announced $45.7 million to seismically replace North Vancouver’s Argyle Secondary. Work is underway at Georges P. Vanier Secondary in Courtenay, a $33.8-million project to replace part of the school as well as for an entire seismic upgrade. The heavy work is done on the $20 million Delta Secondary seismic upgrade and the finishing touches are slated to be complete in spring 2017. School districts and the province have a key partner in getting these projects done on time and on budget — the construction companies of B.C. On a recent tour at Delta Secondary, the benefits of collaboration between the facilities manager and the construction company were seen first-hand. Their partnership and their creativity
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brought big benefits for the staff and students at the school and the taxpayers. The seismic upgrade refreshed and renewed a large part of the school. The people who work on these projects are the driving force behind the success of the Seismic Mitigation Program, and our partners in construction will continue to work together with school districts to complete the remaining seismic projects and build more new schools in the years to come. And many of these projects will help train the next generation of workers in the skilled trades. The industry’s dedication to training combined with B.C.’s Apprentices on Public Projects Policy will make sure our school projects are a real learning experience. Any seismic or capital project worth more than $15 million will employ apprentices on the jobsite. Thanks to B.C.’s strong economy and fiscal discipline, government is able to invest in safe and improved school infrastructure. And when we do that, everybody wins — students, teachers, communities and the hardworking folks that bring these projects to completion. We’re investing $1.7 billion over the next three years to replace aging schools, build more student spaces in growing communities and improve seismic safety. These investments will help strengthen our communities, create jobs and give students today and tomorrow the space they need to succeed. B.C.’s construction industry will play an important role by bringing its expertise, skilled workforce, and sharp pencils to get these projects built. Mike Bernier is the B.C. Minister of Education.
Legal File
Extra Support for Extra Claims By Rebecca Cleary
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n Ross Clair v. Canada (Attorney General), the Ontario Court of Appeal held that a contractor’s $1.437 million claim for extras was barred because the contractor had not provided sufficiently detailed information in support of its claim. The case turns on the specific wording of the contract at issue, but serves as a useful reminder for how claims for extras should be prepared and submitted by contractors and evaluated by owners and consultants. Ross-Clair (contractor) was engaged by Her Majesty the Queen, Public Works and Government Services Canada (owner) to construct unit management offices for the Correctional Services of Canada. The contract outlined requirements for the approval of change orders and claims for extras. With respect to claims for extras, the contract provided only two narrow instances in which extras were claimable — the discovery of substantially different soil conditions than those contained in the plans and specifications or neglect or delay of the owner in doing anything that the contract required of the owner. If an extra claim fit within one of those two categories, then the contract set out three preconditions for consideration of the extra. First, the contractor had to provide written notice of a claim for an extra to the project engineer (engineer) within 10 days of the discovery of changed soil conditions or neglect or delay of the owner. Second, the contractor had to give the engineer a written claim for extra expense or loss within 30 days of the final certificate of completion. Third, the contract specifically provided that the written claim for extras had to “contain a sufficient description of the facts and circumstances of the occurrence that is the substance of the claim to enable the engineer to determine whether or not the claim is justified”. The central issue on appeal was whether the contractor had provided sufficient description of its $1.437 million extra claim to the engineer, requiring the engineer to make a determination of whether to allow the extra. The contractor had provided the engineer with a letter which cited delays due to site conditions, weather conditions, alterations to the contract and disruptions to the original sequence of construction. Enclosed with the letter was an “Additional Cost Summary” that listed its subcontractors and the additional costs attributed to their work which totalled the amount of the extra. The owner immediately took the position that the information provided was not of sufficient detail to permit the engineer to determine whether the claim was justified. The contractor applied to the court for a direction that the engineer consider the extra and provide a decision on the issue.
The Court of Appeal held that the requirement of the contractor to provide the engineer with a “sufficient description of the facts and circumstances” to enable the engineer to determine whether the claim was justified meant that the contractor was required to provide detailed information. The court noted that without detailed information, the engineer was not in a position to determine whether the claim for extras was justified. With respect to the exact nature of the detailed information required, the court turned to the contractual clauses dealing with change orders which explicitly required a cost breakdown identifying the costs of labour and material, each subcontract amount, and the amount of percentage mark-ups. The court noted that the contractor’s claim had failed to include “little if any” and “skeletal” support for the claim. Further, the contractor had not included any information relating to the nature and extent of the owner’s responsibility for the delay, whether compensation had already been paid on account of any extra expenses, and did not explain whether the extra fell within the two categories of permitted extras or the change order provisions of the contract. As insufficient detail was provided, the Court of Appeal held that the claim for extras was barred by the contract and the engineer was not required to consider the claim. In arriving at its conclusion, the court noted that detailed information was required even though the engineer was intimately familiar with the project. In other words, where the contract requires detailed information, a contractor will not be able to argue that it was unnecessary to provide that to a project engineer who already
knows the issues by virtue of their involvement in the project. The court also noted that the fact that the owner and engineer had repeatedly asked the contractor to provide more information in support of its claim “solidified” the court’s conclusion that insufficient information was provided by the contractor. The suggestion that the owner and engineer’s position on the issue somehow confirms the court’s legal analysis is somewhat peculiar, but it does highlight the benefit of an owner and consultant clearly documenting what it considers to be non-compliance with contractual terms in writing. The disallowance of a $1.437 million extra claim without any assessment of the legitimacy of the actual claim is a harsh result, but one that is in perfect compliance with the court’s interpretation of this contract. This decision highlights the importance of ensuring that all contractual terms for the submission of extras and change orders are carefully complied with. Contractors, consultants, and owners should look at the entire contract for clues as to the type of information that should be included in extra claims. Detailed information, to the extent that it is available, should be provided in full and within any timelines set out in the contract. Finally, where the consultant or owner is not convinced that the information provided is sufficient to meet the contractual requirements, that should be clearly documented in writing. Rebecca Cleary is a member of the construction and engineering practice at the law firm of Alexander Holburn Beaudin + Lang LLP.
September/October 2016
construction business
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Legal File
P3 Performance Bonds A Unique Product for the P3 Market By Morgan Troke, Samantha Cunliffe and Liezl Behm
Introduction to Performance Security As the public-private-partnership (“P3”) market becomes increasingly competitive, project developers are constantly seeking innovative ways to lower costs while providing on-time and onbudget projects. One of the key considerations at the outset of such projects, which is of critical importance to both project lenders and developers and has a large impact on cost, is the amount and type of performance security to be provided. In general, the P3 model allows for a public procurement authority to contract the design, construction, financing and (if applicable) maintenance of infrastructure assets to private sector companies. Together with the contracting of work by the authority comes a reallocation of risk whereby the private sector assumes the risks associated with the design, construction, financing (and maintenance, if applicable) of the project. For every project, private sector developers will form a project company (“Project Co”) that is structured as a special-purpose vehicle, with limited assets and capability to perform work, and it is therefore necessary for it to sub-contract its design and construction obligations to an experienced construction contractor. Project stakeholders have a keen interest in ensuring timely performance of obligations by this construction contractor and will seek payment and performance security as protection from the risk of construction contractor default or delay.
Types of Performance Security There are many types of performance security that project lenders can request from a construction contractor. Some common types include: (i) 28 construction business
a guarantee from the parent of the construction contractor, (ii) liquid support in the form of cash or letters of credit and (iii) a performance bond or labour and materials bond. Typically, a security package combining multiple types of performance security is required by project lenders. A parent company guarantee is often required when the construction contractor is a subsidiary of a parent company with a stronger credit rating. It is typically a payment and performance guarantee by the parent of its subsidiary’s obligations under the construction contract, up to a maximum liability cap. Letters of credit and cash support are the most liquid forms of performance support and are usually required by project lenders as part of any performance support package. They can be drawn on default, are provided by institutions with a certain credit quality and are payable on demand. There are multiple types of bonds (including performance bonds and labour and materials bonds) that are used in the P3 market. These bonds are agreements between a surety company, the construction contractor and Project Co whereby the surety commits to take certain action (pay, complete the work, etc.) upon default by the construction contractor.
P3 Performance Bonds A new form of performance security, called the P3 performance bond, has been gathering more attention in the P3 market in recent years. P3 performance bonds intend to combine the liquid nature of a letter of credit with typical performance bond elements to create a more cost effective form of liquid performance security.
September/October 2016
One of the issues with a regular performance bond from a liquidity perspective is that the surety will only be required to pay or perform after it has confirmed that the contractor is in default, which protracts the time for payment or performance. This is in contrast to a letter of credit where construction contractor default does not need to be verified by the paying party, but rather payment will be made upon certification by the demanding party that it is entitled to draw. However, letters of credit are costly to procure and sometimes companies have limited capacity to obtain multiple letters of credit at any given time. For example, if letters of credit are required on every project, it is feasible that a construction contractor may be unable to bid on projects that it would otherwise pursue, due to letter of credit capacity issues. The P3 performance bond injects liquidity into the typical performance bond by including a contractually determined dispute resolution procedure with a maximum period of time for resolution of any dispute. The tight timeline ensures that to the extent there is a dispute, adjudicators make the final decision within the maximum period provided, and if they agree there has been a construction contractor default, payment is made in a much shorter period than the typical performance bond. The P3 performance bond still allows for the contractor and the surety to appeal a default finding after the dispute resolution procedure has run, however, the surety is obliged to pay or perform under the P3 performance bond in accordance with the resolved dispute. This dispels some of the uncertainty around payment and performance of construction contractor obligations for project stakeholders and creates a more cost effective form of performance security as this type of instrument is typically cheaper than a letter of credit. Further, allowing construction contractors to use the P3 performance bond instead of letters of credit frees up their letter of credit capacity and could allow them to bid on multiple projects at the same time.
P3 Performance Bond in Canada Given the benefits of the P3 performance bond, it is likely that this instrument will find its way into more P3 projects in the future. However, lenders are aware that it has not yet been tested in the Canadian P3 market and it remains to be seen whether it will deliver the liquidity it promises. Morgan Troke is a partner in the Business Law Group of McCarthy Tétrault LLP. Both Samantha Cunliffe and Liezl Behm are associates in the same Business Law Group.
Industry News SW Calgary Ring Road Moves Ahead The Alberta government has signed a 35-year contract with Mountain View Partners to design, build, operate, and partially finance the Southwest Calgary Ring Road. The Design-Build-Finance-Operate (DBFO) contract is worth $1.42 billion in 2016 dollars. The Province will fund 60 per cent of the capital construction cost which will be paid during the construction phase. The project consists of approximately 31 kilometres of a new six and eight lane divided freeway, plus additional basic and auxiliary lanes, and includes 14 interchanges, river crossing structures at the Elbow River, a creek crossing structure at Fish Creek, a culvert at Cullen Creek, three watercourse realignments and additional pre-grading for future interchanges. This project will advance the completion of the Calgary Ring Road. Mountain View Partners will start construction in autumn 2016 and the road is expected to open to traffic in 2021. The consortium includes Meridiam Infrastructure North America Corp., Kiewit Canada Development Corp, Graham Capital Partners and Connor, Clark & Lunn Infrastructure, through their affiliate Connor, Clark & Lunn GVest Traditional Infrastructure Limited Partnership and Ledcor Developments Ltd. Feds approve Pacific Northwest LNG The federal government has approved the massive $36 billion Pacific NorthWest LNG project in Prince Rupert, B.C. Led by Malaysia’s state-owned energy giant Petronas, the facility would ship an estimated 19 million tonnes of LNG per year to Asian markets from a port near Prince Rupert. “This is a significant milestone, and the last major requirement for Pacific NorthWest LNG before a final investment decision can be made. As the largest capital investment proposal in British Columbia’s history, Pacific NorthWest LNG represents an unprecedented opportunity to create thousands of jobs and new economic prospects for First Nations and communities throughout our province,” said Premier Christy Clark. The federal approval comes with 190 legally binding conditions, including a cap on greenhouse gas emissions. For example, Pacific NorthWest LNG Ltd. will be required to comply with mitigation measures that will minimize adverse effects on fish, fish habitat, marine mammals, wetlands, migratory birds, and human health. The decision imposes — for the first time ever — a maximum cap on annual project greenhouse gas emissions. This cap means direct greenhouse gas emissions from the project will be capped at a maximum of 4.3 Mt of CO2e per year, 900,000 tonnes less than what had initially been proposed by the proponent. During construction, the project will create an estimated 4,500 jobs and an additional 630 direct and indirect jobs during the operation of the facility. 30 construction business
Edmonton’s Rogers Place Opens Edmonton’s new downtown arena, Rogers Place, has officially opened. The $613.5 million Rogers Place and related infrastructure boasts 18,651 seats, 1,110,900 square feet of space, the largest true high-definition scoreboard in the NHL, expansive concourses with natural light, and an impressive array of food and beverage options. Rogers Place also anchors a major revitalization of Edmonton’s downtown that boasts $5 billion invested in private and public developments, including the new ICE District, which will be Canada’s largest sports and entertainment district. “Our vision was to build a world-class facility that symbolizes Edmonton’s bold future as a great Northern city,” said Edmonton Mayor Don Iveson. “Rogers Place is the first of many new buildings that will be opening in downtown Edmonton, including Western Canada’s tallest tower.” PCL Construction Management started construction of the project in March 2014, and took two and a half years to complete. The project was jointly designed and built by the City of Edmonton and the Katz Group. B.C. invests $400,000 to train roofers The British Columbia government has announced an investment of $401,000 for the Roofing Contractors Association of B.C. (RCABC) that will go towards skills training in high-priority trades seats. The investment, through the Industry Training Authority (ITA), will fund 320 seats in the roofer, architectural sheet metal and residential steep roofer programs through to March 31, 2017. The funding is part of the ITA’s allocation to B.C. post-secondary institutions and training providers to run various training programs throughout the province. In response to the objectives outlined in B.C.’s Skills for Jobs Blueprint and the McDonald Report, the B.C. government has worked in partnership with the ITA to begin building a demand-driven trades training system with funding aligned to specific in-demand trades. University District earns LEED-ND Calgary’s University District has been awarded top honours in the country for its commitment to sustainability excellence by becoming the largest residential project in Canadian history to earn LEED for Neighbourhood Development (LEED-ND) Platinum certification. All criteria for achieving the certification are considered to contribute to an increased standard of living and building. The community was awarded the designation for its excellence in three categories: location, design and green building. LEED for Neighbourhood Development (LEED-ND) rating system was developed by the the U.S. Green Building Council (USGBC) to guide and assess sustainable community development projects that are then registered and certified through the Green Business Certification Institute (GBCI). CaGBC works with GBCI to ensure the certification process serves the needs in Canadian project terms.
September/October 2016
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