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September/October 2018 Vol. 15 No.4

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Jacob Bros. Construction Office Flavia Boffo, Boffo Properties | Open Shop | Steel | Training

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Inside 06 Connections Flavia Boffo is successfully continuing her father’s legacy at Boffo Properties by creating homes that enhance local neighbourhoods.

September/October 2018 | Volume 15 No 4

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MANAGING Editor Contributing writers

10 Feature Project Jacob Bros Construction’s new head office and maintenance facility is not your typical contractor’s office with its unique design and state-of-the-art amenities.

B.C./ALBERTA SALES

Industry Focus

Dan Gnocato dang@mediaedge.ca Cheryl Mah Christian Cianfrone Steven Fox Martin Gobin Matt Jeppesen Rory Kulmala Nathan MacDermott Gregory S. Miller Colleen Reid Richard Truscott Kerry Vital Dan Gnocato Tel: 604.549.4521 ext. 223

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14 Open Shop Open for Business B.C. Community Benefit Agreements Costly Investing in Skilled Workers

19 Training Trades of the Future Stepping Towards Diversity Supporting a Low-Carbon Future

23 Steel Steel Tariffs Hurting B.C. Mountain Inspired Steel Design Mid-Rise Steel Framing Forging Industry Partnerships

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Jacob Bros Construction’s stunning new head office and maintenance facility in Surrey.

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 Association of B.C., Urban Development Institute of B.C. and Vancouver Regional Construction Association.

MARCH 19 & 20, 2019

November 7 & 8, 2018

Editor’s Note

Here We Go Again

W

hen I first started writing about construction in B.C., the industry was in a more adversarial state than it is today with the open shop and unions going head-to-head over many issues and political policies.

But now with NDP Premier John Horgan’s recent announcement of a Community Benefits Agreement (CBA), it appears another round of battles are brewing. The controversial CBA requires workers to join a union on public-sector infrastructure projects, which has sparked division within the construction and business sectors. While one side calls it a progressive and forward-thinking model; the other side criticizes it as an assault on fair,

open, and transparent procurement. Here we go again.

Not surprisingly in our annual open shop focus, you will find discussion on the CBA and its costly impacts. Other articles highlight apprenticeship training and the growth of the open shop and progressive unions.

Another first when I started covering the industry was the low number of women in senior roles and on job sites. While progress has been made over the last 20 years, the numbers remain small in the traditionally male dominated industry.

For our profile, I speak with Boffo Properties principal Flavia Boffo, the only female developer in Vancouver. With more than 30 years of experience, she is successfully continuing her father’s

legacy, co-leading the family business with her brother.

The success of three brothers is the story behind our feature project. The new headquarters for Jacob Bros. Construction is a world class contractor’s office that offers employees a unique and collaborative environment. It’s a perfect way to celebrate the company’s 10th anniversary.

Cheryl Mah Managing Editor

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Connections

Building Great Neighbourhoods

By Cheryl Mah

or Flavia Boffo, construction runs in the family. Her father Tarciscio (Terry) founded Boffo Properties more than five decades ago, starting out as a modest landscape business that has since grown and expanded into various areas of the real estate development industry.

From stacked townhouses and apartments to mixed-market and nonmarket homes, the second-generation family-run company focuses on building great neighborhoods.

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September/October 2018

Towne Walk, Burnaby

Connections “I am a builder’s daughter. I’ve always loved real estate. It’s a passion,” says Boffo, who co-leads the Vancouver-based company along with her brother Daniel. “I love building homes for families and continuing my father’s legacy.””

Born in Vancouver, Boffo has been helping out with the family business since she was four years old, accompanying her father to job sites to water bark mulch or to collect empty planting pots. After completing a BCIT Diploma of Technology, financial management in 1987, she officially joined the company full-time.

“At the time, my father and uncle were working together under Boffo Bros. Construction. Then in 2001, they created separate companies and we continued on as Boffo Properties,” says Boffo, who started out at the company doing a little bit of everything from filing, accounting to development and sales and marketing.

In 2008, Terry handed over the day-to-day operations to his children. Although retired, the 78-year-old still visits sites and provides advice.

“I had the opportunity to learn from both my father and my uncle and since then it’s been an organic transition and today, I have the opportunity to work with my brother doing something we both love,” says Boffo, 51.

Riverfront Corporate Centre, Vancouver

Innovation, good design and authenticity are the core values of the company...

She has used her extensive knowledge in construction and property development to oversee the company’s expansion into multifamily residential and industrial properties, while also maintaining the family’s commitments to relationship building, and creating homes that enhance local neighbourhoods.

Innovation, good design and authenticity are the core values of the company and the foundation of its success, according to Boffo.

“Working hard, doing the right thing and finding the right people for our team and treating them as an extension of the family has always been key,” she says.

The company currently has a number of projects under construction and in different stages of approval. Projects include North Shore’s Edgemont Village, Haven in Port Coquitlam, and Como Lake in Coquitlam.

Their income producing portfolio includes industrial properties such as Riverfront Corporate Centre.

“Our company does everything from A to Z. We do wood frame and infill developments. We don’t have our own forming or

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7

Connections

Cordovan, Vancouver

framing crews. We subcontract all of that work and then oversee the projects,” she says, adding the company has about 35 employees (office and onsite).

Cordovan, a four storey residential development in Vancouver with 24 market homes and five non-market homes, won an Urban Development Institute (UDI) Award of Innovation in 2016. That same year the Maureen Enser Future Leader Award was given to her brother.

“Our goal is to build quality homes that add to the neighbourhood character,” says Boffo.

“We’re in the development business to build something that will last. We build homes that we can live in ourselves. We want to help build communities where everyone belongs, and I think that’s an approach we really need in Vancouver and B.C. right now.”

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She describes the current market as busy and exciting but not without its challenges. Construction costs continue to climb and one of the key challenges for the industry continues to be municipal approval times.

One aspect of the business that has improved over the years is the number of women in the industry.

Being in a male dominated industry has never been an issue for Boffo since she grew up in the business and has always been involved at the boardroom table.

“I’ve never been treated differently. It wasn’t easy, nothing was given to me. I earned it,” she says. “But I do recognize it is a male dominated industry...there has been lots of progress and I see more women in senior roles and on sites.

Close to half our team are women — it’s who is best for the job.”

September/October 2018

Boffo, one of only a few female developers in Metro Vancouver, has mentored women informally over the years. She is a member of various real estate and construction organizations and has been a speaker on panels for UDI and CREW (a professional women’s commercial real estate organization).

In 2011, she was honoured with the VRCA Outstanding Woman in Construction Award, which recognizes an individual who has made a significant contribution or positive impact to the construction industry. “I was honored and privileged to be acknowledged, however, I am not a fan of the attention or limelight,” she laughs.

Boffo says for her the real challenge has been about managing a family business and a family.

She has two sons, 24 and 22, and her husband also runs a family business.

“If I could do it again, I would breathe more.

I always felt like I was running —I wish I took time to breathe,” she says. “As a woman, you want to be a good wife, mother and businesswoman and sometimes there are not enough hours in a day when you are trying to balance work and family. A benefit of a family business is that I had more flexibility to meet the needs of my family.”

Sustaining a family business into a second generation is not easy, but by building on their father’s legacy and with an entrepreneurial vision, the siblings have proven it can be done.

Will there be a third generation to take over?

“My sons will have an opportunity to join the company, if they want. Our family philosophy is they have to work outside the family business first,” says Boffo.

Married for 27 years, she enjoys spending time with her family and loves hiking, reading, biking and traveling.

Feature Project

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September/October 2018

Feature Project

World

Class Office

By Cheryl Mah

hat better way to celebrate a decade of success than opening a brand new modern office? That’s exactly what Jacob Bros Construction did in April 2018 with its state-of-the-art headquarters in South Surrey.

The office and maintenance facility for the heavy civil and commercial building construction company sits on a five-acre site and consolidates a number of the company’s operations within the Lower Mainland.

The project consists of five buildings featuring a three storey, 30,000 square foot office building attached to a 16,000 square foot single storey warehouse complete with dispatch, caretaker suite, storage and service bays. There is also a full-service wash bay and fuel station, welding fabrication shop and storage buildings.

According to principal Todd Jacob, the original goal was to build a maintenance facility but as time passed and the company began to outgrow their old office space, they realized a consolidated purpose-built facility made the most sense.

“We embarked on the process of trying to find land about seven years ago,” he recalls. “We removed subjects five years ago and then the City of Surrey took a long time with permits and approvals. We were frustrated with the time it took, but it also gave us the opportunity to design as near perfect a facility as possible.”

In fact, Jacob cites the biggest challenge on this project was the lengthy reviewing and permitting process with the City of Surrey. Other than that, it was really about assembling together the right group of talented people to put together the level of detail required for the design-build project.

“The level of finish for this project eclipses any of downtown Vancouver lawyer’s office,” says Jacob, adding they handpicked their subcontractors. “The woodwork and millwork were so extensive, we used three different millwork contractors to complete it.”

The project broke ground in June 2016 and was substantially completed in January 2018. At peak of construction, 70-80 workers were on site.

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Feature Project

..this is definitely not your traditional construction office and maintenance facility...

Both the office and warehouse structures were tilt-up concrete construction. The office is clad with a curtain wall and the interiors are partially cast-in-place concrete.

“With the attention to detail and the unique design, I think this is a world class contractor’s office and maintenance facility,” says Jacob, crediting the successful delivery of the project to a highly collaborative process with the entire team.

Designed to LEED standards, this is definitely not your traditional construction office and maintenance facility. The interior incorporates both a highly functional West Coast and contemporary design by Studio Ten and an enhanced working environment with open collaborative spaces filled with natural daylight.

Highlights include ergonomic workstations 12

construction business

with sit stand desks, multiple boardrooms, chilled water stations, a fitness facility, spacious lunchroom connected to a rooftop patio and EV charging stations.

“When our customers visit the facility, they are not only wowed by the design of our project, but it illustrates the size of Jacob Bros and our capabilities and diversity. I think we were perceived to be a smaller and different contractor than we are,” says Jacob, noting his design vision was inspired by a California winery.

A key focal point is the three-storey glass and concrete atrium that interconnects all the office floors. Reclaimed Douglas Fir wood tiles were used for the 40 foot high feature wall in the atrium while black walnut ceiling, wall and soffit features can be found throughout the office spaces.

September/October 2018

“Our maintenance facility also has very hightech installations of equipment and practices,” says Jacob, citing the use of automated fluid dispensers for their large fleet of equipment while used oil is stored to provide supplemental heat.

“There is no waste and everything is cleaner.”

The new head office successfully showcases the company’s commitment to quality construction, while providing employees with a beautiful and productive workplace. The new space has been met with great feedback and has already been featured in a U.S. commercial. The project has also earned a 2018 VRCA Silver Award of Excellence with a chance to win a Gold Award at the October gala.

“We’re super ecstatic about the finished product. It was a very exciting project to work on,” says Jacob. “Combining both the office with the maintenance and storage of equipment has created a great synergy. Now our mechanic team of 12 enjoys just as nice a work space as the office staff.”

The family-owned construction company is no stranger to delivering complicated and high-profile projects, having completed a wide range of heavy civil, municipal and commercial construction projects across B.C.

Feature Project

The foundations for the company were laid in the spring of 2008 when the three Jacob brothers (Scott, Todd, and Jason) joined forces.

Originally from Regina, the three brothers grew up in Sidney on Vancouver Island and were exposed to construction at an early age by their father who was a carpenter.

An early project that was key to growing the company was the rebuild of Granville Street, arguably the company’s most challenging project to date. It involved the complete reconstruction

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of 10 city blocks right through Vancouver’s downtown core on a tight schedule. The company has also completed many projects for YVR, worked on parts of the Evergreen Line and was a subcontractor on the South Fraser Perimeter Road.

Today, Jacob Bros. is one of Canada’s largest construction companies and employs up to 400 workers during peak periods. The strength of the business lies in strong industry relationships, says Jacob. “Our business is built on relationships. We have grown and matured a lot in

September/October 2018

10 years and our goal is to continue to develop strong lasting relationships with clients.”

Another goal is to expand the company’s buildings portfolio which includes notable projects such as the 20-storey Crystal Blu Hotel and Residences on Robson in Vancouver.

“We’re known as civil contractors. We want to expand our buildings work,” says Jacob. “The new office and facility give us a chance to visually demonstrate to our clients our ability to design and construct a very complex facility.”

Open Shop

Open For Business

Workers flock to open shop and progressive union options.

By Jordan Bateman

M

ake no mistake: construction in British Columbia today is now an open shop business.

Fewer than 15 per cent of B.C.’s 250,000 construction workers are affiliated with the traditional building trades unions.

The rest are a mix of pure open shop, progressive unions such as Christian Labour Association of Canada (CLAC) and the Canada West Construction Union, and employee associations.

It wasn’t always like this. In the 1960s and 1970s, open shop workers were limited to small-scale residential projects, as the building trades aggressively and forcibly protected their turf, especially on taxpayer-funded projects.

But over the past 40 years, that building trades market share has faded considerably as open shop companies competed with better wages, benefits, training and apprenticeship programs — and capitalized on their ability to match the needs of a workforce craving flexibility.

All this, while offering the best bids for both private and public work.

“Open shop is more attractive to workers than ever before,” says Chris Gardner, president of the Independent Contractors and Businesses Association, which represents 2,300 member and client open shop construction businesses.

“Unlike the old-fashioned union model, open shop companies can offer their workers flexibility in terms of hours, days, overtime, and projects.”

A survey of ICBA employers shows that open shop companies expect to hand out 10 per cent raises over the next two years to trades workers.

“There is so much competition that if you excel at your trade, open shop companies will do whatever it takes financially to keep you,” says Gardner.

“Benefit and RRSP programs rival anything in the building trades unions, and are easier to take with workers as they move employers.”

Unlike the unions, which have intricate and sacrosanct rules about who in their ranks can be called upon to do what duties, and which often reward older workers at the cost of the young, open shop companies use the Gretzky Principle — the best players get the ice time. Work hard and good things will come.

“Open shop companies have the flexibility to reward the best workers — not the oldest ones — with the most hours and best projects,” says Gardner. “There aren’t those bumping rights that prevent younger workers from getting the lucrative work. It’s very much merit-based on these work sites.”

Gardner noted that the recent Pattullo Bridge project labour agreement — a sole-sourced deal authored by the B.C. NDP government giving building trades union a monopoly on a $1.37 billion Lower Mainland bridge project — reinforced just how little those unions think of their younger workers.

The deal stipulates that pre-apprentices in five different trades be paid less than the provincial minimum wage.

“Why would young people consider a career in the trades when they can make more working at any other job they can find? That’s not a commitment to attracting the next generation,” says Gardner. “ICBA is the single largest sponsor of trades apprentices in British Columbia, and our open shop companies have done this by offering good wages and flexibility to our youngest workers.”

Not every ICBA company is non-union. Progressive unions like CLAC and CWU have found a niche in open shop by realizing that workers and

employers are in this together — viewing labour relations as a partnership, not open warfare. This collaboration and cooperation are a major reason why these progressive unions are growing in leaps and bounds, while the traditional building trades flounder.

“No one wants to strike or to be locked out,” says Gardner. “The vast majority of people — whether employer or worker — realize that labour disputes hurt everyone involved. Companies take a reputational hit — no small cost in a social media age, and employees almost never get back what they lose on a picket line. It’s better for everyone to talk things out constructively, being honest and forthright about the costs on a company, and ensuring those jobs can flourish for the long term.”

Many open shops now use profit-sharing and other incentive structures to give workers a sense of ownership of projects and further reward their work.

Construction also offers real opportunity to workers who have an entrepreneurial bent.

“Many of the largest, most successful construction companies in B.C. started the same way — a worker learned the trade at an established company, eventually formed their own crew and struck out on their own. And just kept on growing,” says Gardner. “The bottom line is simple: if you want a job in construction, there’s one available in open shop. Construction is a growing, evolving industry, creating good jobs that can support families. It’s important that we continue to attract people into the trades and give them the opportunity to succeed.”

Jordan Bateman is director of communications at the Independent Contractors and Businesses Association.

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Open Shop

B.C. Community Benefit Agreements Costly

By Richard Truscott

A

n old adage, often attributed to Albert Einstein, says that “insanity is doing the same thing over and over again, but expecting different results.” Sadly, the B.C. government is poised to do exactly that following their July announcement that Community Benefits Agreements (CBAs) will be required for all new public infrastructure projects.

Supporters of these agreements claim they increase certainty of construction projects. Furthermore, they assert CBAs are beneficial for our communities because of provisions that require the hiring of people from communities, women, and minority groups. These are laudable goals, but need to be balanced with the cost to taxpayers. Surely, there are better, more cost effective ways to promote new approaches to hiring and increasing apprenticeships. And if more of these workers’ tax dollars are being diverted to these projects, it is debatable just how much they are benefitting from these arrangements.

The Highway Contractors LTD (HCL) Agreement negotiated by the NDP government 16

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in the 1990s serves as an example of the failure of this antiquated policy. Similar to the government’s recent pronouncement, the HCL Agreement required all workers to join an approved union for the duration of time that they worked on the Vancouver Island Highway. As a result, labour costs skyrocketed.

The HCL Agreement in the 1990s serves as an example of the failure of this antiquated policy.

A notable BDO study commissioned by the Vancouver Board of Trade in 1994, “Cost Impact Analysis of the Vancouver Island Highway Collective Agreement”, found that the HCL Agreement increased labour costs by approximately 37 per cent when compared to costs for

September/October 2018

non-affiliated labour. This was even higher than the 20 to 30 per cent estimates that critics of the project were citing at the time.

So how does this relate to the Community Benefit Agreements announced by the government in July?

It serves as a basis to estimate the additional cost it could incur for tax payers. The Canadian Federation of Independent Business (CFIB) applied the findings from the BDO study to B.C.’s major infrastructure projects to gain insight on the financial ramifications of the CBAs. CFIB’s estimates show the CBAs will be costly for taxpayers. The analysis examined the Pattullo Bridge, one of the first projects where the CBA framework will be applied. In addition, all infrastructure projects planned to be undertaken by the province for the next three years — the remainder of this government’s mandate — were considered.

In the process, CFIB made a few assumptions. Most notably, the study assumed the 37 per cent labour cost mark up applies in these

Open Shop

new projects, as it did in the HCL. Also, it used a range for the cost of labour of between 25 and 50 per cent of the total cost for each infrastructure project.

The analysis was meant to provide a rough estimate, as realities facing every project differ and the labour premium for CBA projects could potentially deviate from the precedent set by the HCL agreement.

The results were illuminating, to say the least.

For example, the Pattullo Bridge is approximated to cost $1.38 billion in public funds.

With labour representing between 25 and 50 per cent of this sum, the costs could increase by between $129 and $259 million respectively.

To truly quantify that figure, it means every family of four in B.C. will have to pay an extra $107 to $215 in taxes for this single project.

Overall, provincial infrastructure projects are currently estimated to cost roughly $25.6 billion over the next three years. Under CBAs, these projects would entail an additional $2,000 to $4,000 in costs for every family of four in B.C. However, when considering the dollars spent on the project, the analysis does not actually consider the project’s costs in their entirety. Economics teaches us that in order to accurately calculate the cost of a project we must also contemplate the next best use of those resources. In this case, those resources would be tax dollars that would otherwise be used for important public services. By spending an additional $129 to $259 million on one infrastructure project, the government is foregoing resources it could use elsewhere. For example, the additional funds required to build the Pattullo Bridge under the CBA could pay for the construction of five more schools in the province.

There is a reason that the HCL Agreement did not initiate a new model for construction projects across the province back in the 1990s: the costs are simply too high. The fact these agreements raise the costs of provincial construction projects is something the current B.C. government has acknowledged when they conservatively estimated the CBA could raise the cost of the Pattullo Bridge by seven per cent. However, no rationale is given for how they calculated this number. And we all know how reliable government cost estimates can be.

If history teaches us one thing, it is that union-only agreements, like those presently being proposed by the government, will end up costing taxpayers a lot more money. Unfortunately, it appears this is a lesson the B.C. government has still not learned. They are doing the same thing over and over again, all the while hoping for different results.

Richard Truscott is vice president, B.C. and Alberta, for the Canadian Federation of Independent Business.

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Open Shop

Investing in Skilled Workers

By Kerry Vital

A

common myth spread by the unionized side of the construction industry is that the open shop sector doesn’t train their employees. It’s simply not true.

“The open shop does an outstanding job of training its workers,” says Chris Gardner, president of the Independent Contractors and Businesses Association (ICBA). “In 2017 alone, nearly 5,000 people trained or apprenticed with ICBA. We are already well on our way to beating that number in 2018.”

In the 2016 B.C. Construction Industry Survey from the B.C. Construction Association, 83 per cent of tradespeople respondents were from the open shop sector, up from 70 per cent the year before. That same survey reported that open shop employers of all sizes are proud to offer training support and invest in their workers.

“The construction industry is constantly evolving,” says Sabine Just, ICBA’s director of training. “ICBA’s training program can quickly respond to changes and deliver new courses to ensure the open shop’s knowledge and skills remain top of the industry.”

The open shop represents 85 per cent of the construction industry as a whole in B.C., and delivers hundreds of courses per year across the province and online. ICBA, as well as progressive unions such as the Christian Labour Association of Canada (CLAC) and Canada West Construction Union (CWCU), provide a wide range of educational opportunities, from equipment operator training to supervisory and management workshops to safety courses such as

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first aid and fall protection. Mental health and wellness courses such as ‘Managing Stress’ and ‘Understanding Anger’ are a particular focus for ICBA and its counterparts.

The open shop’s inclusive approach to training also includes the ability to work with contractors to support any benefit agreements in procurement contracts. Pre-hire training programs have been set up to support under-represented groups like women in construction and indigenous groups giving them the skills needed to be employed on open shop projects.

New course offerings are developed every year, growing employees’ skills as they progress through their career. ICBA’s training reach has spread throughout the province in the past decade, with multiple courses per month taking place in Northern B.C., Vancouver Island, the Lower Mainland, and B.C.’s interior. Regular training newsletters allow open shop contractors to easily access the continued education they require and ensure they do not miss an upcoming course in their area.

Training doesn’t always come with a fee either. Open shop associations offer plenty of free training, including free networking breakfasts several times per year to give both employers and workers the chance to further their education in a specific topic such as ‘Professional Selling’ or ‘Growing Your Construction Business’ while also meeting other contractors who may become valuable contacts in the future. In addition, many associations have training funds that are used to pay for apprenticeship and course reimbursements for workers.

September/October 2018

Most of ICBA’s professional development courses are Gold Seal Certified and BC Housing accredited, which gives both members and non-members alike the opportunity to advance in their career through the achievement of Gold Seal Certification, or continue to hold their residential builder license from BC Housing.

In addition to courses open to the public, organizations such as ICBA, CWCU and CLAC offer customized in-house training for their member companies. Everything from high-angle rescue training to bear awareness can be accessed with a single phone call and can be customized to fit any location, for any number of trainees.

But it’s not just continued professional development training; the ICBA is the single largest sponsor of construction apprentices in B.C. with approximately 1,100. In fact, the open shop became the main provider of apprenticeship by 1990, overtaking the B.C. Building Trades. A key talking point for a B.C. government trying to justify giving the B.C. Building Trades a monopoly on public projects is that only unions can offer effective support to apprentices. However, according to the B.C. Construction Association, no data has been reported showing that union shops have higher apprenticeship ratios.

The appeal of the open shop apprenticeship program is in its apprentice and employer-focused approach. Open shop organizations support their apprentices with information on their technical training, apprenticeship bursaries, and dedicated staff are available to answer any and all questions that an apprentice or employer has.

These programs have contributed to a steady rise in the number of apprentices employed and sponsored by the open shop. Since 1981, the number of youth aged 17 to 24 working in union environments has dropped by 50 per cent.

In addition, effective apprenticeship programs such as the ones offered by ICBA contribute to a higher rate of completion as both apprentices and employers feel supported as they progress.

Smaller companies that make up the majority of the construction industry often struggle to handle the paperwork and other necessities that come with hiring an apprentice; open shop organizations are happy to take those administrative duties on and allow the employer and apprentice to concentrate on the practical training that happens on the job site.

“Training should be life-long,” says Gardner.

“The open shop has committed to making sure the workforce has the skills and knowledge to build B.C. every day.”

Kerry Vital coordinates and manages special projects for ICBA’s training department.

Training

Trades of the Future

By Rory Kulmala

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or centuries, construction processes and models have remained relatively the same, with few changes made to techniques and technologies used. The industry has relied on skilled manual labour, basic machinery, and simple materials to get the job done for industrial, commercial, and institutional (ICI) projects and residential projects alike. As a result, construction has been deemed stagnant compared to other industries, criticized for its lack of innovation and its inefficiencies, particularly in the manufacturing sector. The good news is that the construction industry is changing.

Building Information Modelling (BIM), 3D printing, autonomous and semi-autonomous equipment, wireless and virtual reality (VR) technologies, prefabrication, and modular are making their way into the construction world, and it’s hitting all at once. We now have designs that showcase innovative materials and complex geometries, with new methodologies to meet production and building efficiencies — and the trend is only expanding. With the automation of many production processes, we see this applied to the construction sector where entire buildings can be built under controlled conditions in an offsite facility, shipped to site, and erected or installed in literally hours.

Technology and processes are evolving in all industries, and with each advancement a new set of skills is needed to meet the growing demands. As we transition into a more innovative industry, people working in construction must continue to embrace new technology to do their jobs, be it on site or from the office. From scheduling apps that tell a worker what he or she is working on during any given day and virtual reality software that allows tradespeople to “construct” a project before a shovel even hits a ground to GPS-based equipment that allows excavators to work within millimeters of a desired design, we are seeing industry advancements that impact the job from conception to completion.

So, what does this all mean? Why is this important to our new workforce?

At a time when our industry is challenged with doing more with less, we are seeing added complexity in projects, new regulatory requirements, and a myriad of other social influences.

As our industry develops and adapts, we must ensure our workforce does as well. A tradesperson’s knowledge and experience, coupled with an aptitude for innovation, are fundamental in seeing these bigger and more complicated projects through to fruition.

The people we bring into the construction sector today not only need to have strong trade

skills, they must also be adaptable to modern technology — now, and in the future. They must have an aptitude to learn and expand their knowledge base, so they can effectively deploy these emerging technologies in the real world, whether that’s from a desk or on the jobsite.

They need to be creative in developing new processes to solve problems and deliver innovation that they never had to in the past. Fortunately, the generation that will be our future workforce is, at the very least, more inclined to be technologically savvy.

For any new person looking to pursue a career as a skilled tradesperson, they are required to undergo a rigorous training regime to meet the high standards that our industry demands. For instance, in many skilled trades programs with participants working towards Red Seal Certification or “skilled status”, individuals can spend up to four years in practical work experience as an apprentice on top of technical training requirements typically provided by community colleges. One might argue that trades programs are as challenging, if not more challenging, than many postsecondary degrees or diplomas in our colleges and universities today. Much like their counterparts at said postsecondary institutions, participants must have the dedication, intellect, and drive to successfully complete these certifications and be successful in their trade.

As we look to fill 15,000 new construction jobs in British Columbia by 2025 — on top of

the nearly 58,000 jobs to be replaced, largely due to retirement — it must be acknowledged that the construction industry has changed significantly over the past couple of decades and will continue to change as we look to the future. Although many principles and techniques remain the same, there have been drastic improvements when it comes to how technology is employed in the construction sector.

The learning of new skills, techniques, and technologies never stops, particularly in the age of information, big data, and Internet of Things (IoT) that we are in today. Once in the workforce, new tradespeople will not only spend years “learning the ropes” but they will also need to adapt their skills and knowledge in the years that follow as they continue to embrace innovation in construction. We are in an era of transformation for our industry that we haven’t experienced before, and our skilled labour force will continue to adapt as needed.

Rory Kulmala is CEO of Vancouver Island Construction Association (VICA), serving the institutional, commercial, industrial, civil, and multi-family residential construction sectors on Vancouver Island, the Gulf Islands, and other coastal areas of B.C. VICA’s 430 plus members come from all areas of the industry from owners, architects, and engineers to consultants, manufacturers, and contractors. www.vicabc.ca

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Training

Stepping Towards Diversity

By Colleen Reid

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s the construction industry continues to boom across Canada, and with current and future labour shortages rising, addressing complex challenges such as attracting, recruiting and retaining women in the construction industry is more critical than ever before. Industry leaders and employers are becoming more aware of the need for innovative solutions to these challenges through a strong focus on gender diversity and examinations of the industry’s values, experiences and behaviours. While organizations across Canada have a long way to go, some organizations have already adopted new strategies to address gender diversity and inclusion.

EllisDon Corporation is taking action towards ensuring diversity, inclusion and gender equality within the organization. In June 2018, the company conducted a series of individual and group ‘Diversity and Inclusion Discussions’ facilitated by an external consulting group.

The discussions involved a sample of EllisDon leaders and employees in various centres across Canada where participants were asked to share their candid perspectives and experiences on the issues of diversity, inclusion, and respect.

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Geoff Smith, EllisDon president and CEO said, “at EllisDon, we must go beyond mutual respect to complete mutual support in every aspect of our lives together.”

He noted that the company is thoroughly exploring how it is doing right now, where it is strong, where it needs to improve, and what opportunities are there for the company to go beyond merely acceptable to exceptional.

“This may be one of the most important things we have undertaken at EllisDon,” says Smith. The initiative assesses the organization’s current level of diversity and inclusion and identifies what needs to be prioritized in order to close any gaps. A report detailing the final findings, recommendations, and a strategic plan, is expected to be released in fall 2018.

The EllisDon branch in Richmond, B.C., has begun taking steps toward promoting diversity and inclusivity by creating an internal network for women within the company. When members of the branch realized there were no women in leadership positions in the region above the manager level on-site or in the office, they identified the need for a group where women could

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L-R: Ashley Saidi, virtual design and construction manager; Hannah Kazda, project administrator; Jessie Friesen, assistant superintendent; Colleen Reid, business development manager; Brandi Huryn, project accountant, Xenia Gordienko, BIM coordinator.

come together and support one another through the challenges they experience as they work to breakdown gender barriers. The primary objective of this grassroots, employee-initiated network is to create opportunities for training, mentorship and support for women.

Since being established in early 2018 by a small group, the network has grown to 31 members in the B.C. region. “As a network, we help each other build connections, exchange ideas and provide women with the tools they need to drive their careers,” says Jessie Friesen, assistant superintendent at EllisDon’s YVR Core Program at the Vancouver International Airport in Richmond.

Prior to the network’s first event earlier this year, many of the women had never even met each other before as they all work on

Training

different projects. Now, the group looks forward to attending networking events together, having built connections and relationships where women are supporting other women.

In an industry where women have typically been underrepresented, this network understands that it is important to help each other use their voices, take charge of their careers and emerge as leaders. Looking beyond B.C., the network is reaching out to other offices within the organization in an effort to initiate a formal development program specifically for women across EllisDon, in hopes of improving their lives and their communities.

Tackling gender imbalance requires not only a commitment from those currently within the industry, but a movement targeted at young professionals as well. Historically, women in construction have often been stigmatized for

The construction industry needs women champions to create a move forward... working in non-traditional roles within an industry that has always been viewed as a maledominant. In recent years, these silos have been breaking down as more female leaders emerge.

The industry now needs to shift its focus and make new priorities in order to align with current values and perceptions.

One proposed solution to creating such change is through a call to action to engage youth, women and men, by: 1. Promoting and educating the next generation on diversity to create a positive mindset.

2. Activating and engaging youth to be partners in the action for gender equality.

3.

Increasing exposure and highlighting examples of women with successful careers in the sector to shift the current perception.

The construction industry needs women champions to create a move forward towards a better balance of women and men working in the construction industry. EllisDon has shown its commitment to taking specific steps to improve diversity and inclusivity within its organization, and we call upon other construction industry leaders to also take the next step.

Let’s build a better, more inclusive and diverse industry together.

Colleen Reid is the business development manager for EllisDon Corporation’s Richmond office. She leads the proposal development for EllisDon’s CM, Design-Build and P3 pursuits, along with marketing and communication strategies for the area.

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Training

Supporting a Low-Carbon Future ZEBx will provide resources to help industry achieve zero emission buildings.

By Christian Cianfrone

W

ith buildings contributing about 40 per cent of greenhouse gas (GHG) emissions in Canada, there is no doubt that rapid change must take place within the building industry if Canada is to meet its climate change commitments established under the 2017 Paris Agreement.

The City of Vancouver has been leading the way on the advancement of zero emissions buildings, having established the Zero Emissions Building Plan in 2016, which includes aggressive building energy and carbon reductions for new buildings, as well as industry support tools such as incentives and research. On the policy side, the City of Vancouver will require most new buildings to be designed and built to a nearly zero emissions standard by 2025. The Province of British Columbia is following close behind, indicating that the minimum building standard will be at a “net zero energy ready” level by 2032, and allowing local governments to opt in to performance levels between minimum code and net-zero energy ready today, through the B.C. Energy Step Code framework.

These policies recognize that buildings provide one of the greatest opportunities for GHG reductions when compared to other industries, as there are already a number of building solutions to this objective. Despite this, the industry has not yet seen widespread adoption and implementation. While regulation is a necessary tool, it is only one of many required to not only reduce energy and emissions in buildings, but to also do so in a way that ensures the places we live and work are more cost-effective to build, resilient, healthier and more comfortable.

ZEBx is one such critical tool to catalyze this change — a collaborative platform that strengthens the public, private and civic capacities for zero emission buildings. As a neutral, trusted advisor, ZEBx connects industry to solutions through partnerships, knowledge exchange, product and project demonstrations, software solutions, and a curated resource library to accelerate market transformation. ZEBx is also a physical centre with co-located leading businesses, forming one of Canada’s first building innovation clusters.

ZEBx leverages the leadership currently displayed in the industry across governments, businesses, and organizations to showcase solutions and learn from experiences to accelerate the iteration and optimization of the most costeffective, implementable strategies for greater market adoption — an ongoing endeavour that has resulted in an increase of 53 per cent in green building jobs in Vancouver since 2010. It

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is worth highlighting here just a few of the initiatives being undertaken by some of ZEBx’s partners — leading B.C. organizations that are supporting industry to transition to a low-carbon building future.

Through a number of voluntary policies, incentives, and programs, the City of Vancouver has inspired projects to pursue the highest levels of performance, one of which is the International Passive House Standard. The goal is to generate valuable lessons learned and stimulate supply chains for high performance building products in advance of the 2025 requirements. To date, more than two million square feet of projects are pursuing near zero or zero emissions standards, with two of the first multi-unit residential Passive House projects now completed and sharing experiences through a ZEBx event held in September.

BCIT built and launched the High Performance Building Lab and has since strategically weaved it into the majority of its courses within the School of Construction and the Environment. This lab provides builders and trades with hands-on training in zero emission buildings (ZEBs), and develops their understanding with building envelope application technologies and high-performance envelope systems. BCIT also developed an entire suite of courses to support the construction industry’s transition to the B.C. Energy Step Code and the city’s Zero Emissions Building Plan with ease.

Another educational institution achieving great success is UBC. Among its endless research within the focus area, UBC is home to the world’s tallest mass timber building (Brock Commons) and the most sustainable building in North America (The Centre for Interactive Research on Sustainability). Proving concepts often argued as unattainable, such as the use of mass wood in high rise buildings and constructing net positive buildings, these buildings stand as courageous examples for industry to look to for inspiration and a better understanding of high-performance design and construction applications.

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Open, a social enterprise dedicated to providing open source software solutions for the building industry, is working with the provincial government to develop an easy to use, mobile software tool to support designers and builders so that they can optimize both energy and construction costs when applying the new B.C. Energy Step Code. Still under development, this tool aims to be live by early 2019 and is an evolution to Open’s existing educational tool, Building PathFinder.

These are just a few of the many excellent efforts from industry and it’s clear there exists the knowledge for achieving zero- or near zeroemissions buildings in our region.

ZEBx was formed to be a central hub for knowledge exchange so that initiatives and opportunities, such as those highlighted above, are made accessible to targeted industry audiences.

Our commitment to open and collaborative communication between government, industry and academia allows for the various building industry sectors to coordinate their efforts in a way that efficiently pursues our common objectives under current climate policy, while fostering economic prosperity as market demand for low-carbon building practices and technologies continue to grow.

ZEBx is here to support industry as it navigates the many policies that are quickly challenging and transforming the status quo. In addition to connecting industry to existing resources and programs, ZEBx continuously develops its own programming and resources to fill the gaps and cater to the evolving needs of industry. We encourage all organizations — big and small — to connect with us directly to identify current capacity gaps and collectively work towards achieving zero emission buildings.

Christian Cianfrone is the executive director of the Zero Emissions Building Exchange (ZEBx).

Steel

Steel Tariffs Hurting B.C.

By Martin Gobin

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he reinforcing steel market in British Columbia is brisk. The residential high-rise market has been keeping the market busy for the last several years and appears that it will continue for the next couple of years. We are seeing a trend towards infrastructure work (dams, bridges, water treatment plants, etc.) — public projects that will support the increasing population. There are several major projects on the books and in the planning stages in the B.C. market. Oil and Gas represent 45 per cent of the total estimated capital costs in the major projects inventory, followed by residential/commercial at 18 per cent, and transportation and warehousing at 16 per cent with manufacturing utilities, public services and other services making up the balance.

The entire construction industry in this area is feeling the effects of the busy market with the shortages of qualified labour and entrants into the various fields. This is not expected to subside for the foreseeable future.

Opportunities in the trades for young entrepreneurs are the brightest it’s been in many years. There is a changing of the guard, as many of the well-seasoned journeymen are slowing down and moving into retirement. This will open up favourable circumstances for those with the resourcefulness to capitalize on these opportunities.

Our greatest challenge has been in securing product for existing and upcoming projects. Last

year and early this year we began to see the supply from our local suppliers tighten up. The two mills south of the border, Nucor (Seattle) and Cascade Steel Rolling Mills (McMinnville), are who we consider “local” producers. Alta Steel in Edmonton has capacity to support approximately 15 per cent of the Western Canadian market.

We rely on imported rebar to fulfill the balance of our requirements. U.S. mills support about 35 per cent of the Canadian market.

These percentages came to an abrupt change on July 1 when the Canadian government announced 25 per cent countervailing duties on steel imported from the U.S. (our local suppliers). The steel and aluminum tariff war with Canada started by the Trump administration in March has reduced the flow of American construction steel into Canada, creating shortages in this country and driving up prices.

Supply issues for construction steel are particularly acute in British Columbia. The mills in Central Canada have been unable to materially supply the West Coast due to increased demand in their market and the cost of freight to ship over land is prohibitive. Ocean bound freight is the most cost-effective way to ship this heavy bulky commodity.

On August 14, the Canadian government announced a consultation period on whether to impose new trade measures known as “safeguards” limiting steel imports by way of tariffs and/or quotes. Steel producers in Canada have

been pressuring the government of Canada to impose protectionist safeguard measures on steel imports because they suggest that foreign steel will be diverted to the Canadian marked following the US Section 232 Tariffs. The government is considering safeguard action on seven steel products to protect domestic producers from imports including steel plate, rebar, energy tubular product, hot rolled sheet, pre-painted steel, stainless steel wire and wire rod.

Businesses are concerned about the unintended consequences of such action and formed the Canadian Coalition for Construction Steel (CCCS). CCCS represents major users, suppliers, fabricators, service centres, and importers of construction steel from across Canada.

The objective of the CCCS is to encourage the government to engage in broad-based consultations before taking any new actions. The CCCS has met with several of the ministers and bureaucrats. The coalition is confident that with this evidence it will conclude that steel production in Canada is not at risk. Even if that changes, there are ample restrictions for unfairly traded steel. ** At press time, the government still had not announced its decision on steel safeguards.

Martin Gobin is president of Heritage Steel Sales Ltd., a long time fabricator in the Greater Vancouver area.

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Mountain Inspired Steel Design

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everal factors influenced the design of the new Arc’teryx flagship store in Vancouver but all led to the prominent use of zinc on the exterior. The retail chain, founded by local climbers in 1989, offers highperformance outdoor equipment and clothing.

Custom titanium zinc panels, installed on a diagonal facade along with natural granite to symbolize the nearby mountain horizon, highlight the retailer’s largest Canadian store.

The building itself was previously two adjoining linear structures that required major renovation to meet design objectives. Architectural and construction management services were provided

by Unison Construction Management Ltd. “We demolished a significant portion of the front of the building and reconstructed it to increase support for the facade height that was added,” said Ehsan Vali, Unison’s lead designer on the project. “It was a big challenge for our structural engineers. And we had to bring the building up to code in all disciplines — it was quite complicated for what you would expect from a 4,000 square foot building.”

Selection of the zinc for the exterior was inspired by Arc’teryx itself, according to Vali. “A lot of their products rely on metal components.

They’re very durable and require precision in their manufacturing,” he said.

Titanium zinc was also used on the interior as infill material for various racks and product display areas.

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Arc’teryx, which operates five stores in Canada and 32 stores globally, positions its products as “built on the principle of obsessive, precise design and production” that provides “timeless quality and unrivaled performance.”

“I knew I wanted to use metal and zinc caught my attention early on,” said Vali. “I discovered that the nearby mountains contain significant deposits of both zinc and copper. And I came across different pictures of actual raw zinc and noticed the very linear, angular, clear lines with a bit of sheen. We quickly settled on titanium zinc as the right material to deliver the ‘cool’, modern aesthetic to complement the brand.”

Approximately 2,000 square feet of custom panels were fabricated and installed by Ace Copper Specialists in Surrey. “I wanted a fabricator and installer that could do an art piece,” said Vali. “Ace did a fantastic job. We’re very pleased with the outcome.”

Paul Dore, president of Ace Copper Specialists, worked closely with Vali in designing the 24” x 48” custom graphite-grey panels, according to Jason Dore, the company’s chief operating officer. Early in the design process, Dore provided a sample zinc shingle to the design team and “they loved it,” according to Dore.

The mountain-inspired architectural design called for the panels to be installed on the diagonal as well as wrapped around a sharp 90 degree corner.

“To further complicate the job,” said Dore.

“The cap line at the roof was at a slightly

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different angle than the angle of the shingles.

We hand-fabricated all of the top shingles onsite. And the designer didn’t want seams when we wrapped the panels around the corner. The installation had to be perfect to keep the angles all in place. The job was a challenge but turned out to be really striking.”

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Mid-Rise Steel Framing

By Steven R. Fox

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old-formed steel framing can provide benefits ranging from improved cost efficiency to reduced construction times, but some building professionals may not fully understand how to take advantage of these benefits for mid-rise construction projects.

Prebuild planning Using cold-formed steel allows for year-round building and increases savings on projects.

Building professionals can take advantage of the material for projects spanning the winter by planning ahead for a construction timeline that takes weather, material capabilities, and limitations into consideration. It is vital to involve all parties in the prebuild planning process, from architects and engineers to plumbing and electrical trades, especially if the project team is considering offsite building options.

In Oakville, Ontario, architects for Sheridan College’s Trafalgar Campus student residence took advantage of steel by planning for the installation of loadbearing cold-formed steel framing on the project through the winter. By timing construction so the foundations were poured before winter began, crews were able to install the cold-formed steel framing, hollow-core floor and roof joists during the coldest three months of the year. Pouring the foundations prior to winter and using cold-formed steel framing were key factors to hitting milestones and meeting the project’s final deadline. Sheridan College shaved approximately three months off its construction cycle and, as a result, saved an estimated $300,000 in carrying costs.

Panelizing Panelization provides many advantages, from minimizing costly weather delays to ensuring greater quality control. Cold-formed steel’s ability to be created to exact measurements facilitates offsite manufacturing and panelization. This can reduce construction projects’ field times as much as 75 per cent, minimizing total project cycle time while improving quality.

In Cambridge, Ontario, the Seasons Retirement Community is an eight-storey building with the two bottom floors of reinforced concrete topped with six storeys of cold formed steel. Raymond Van Groll was the structural engineer for the project and converted the original concrete design to this combination of concrete and cold formed steel. According to Van Groll the decision to go with cold formed steel was simple, it saves money. The architects for the project, Glos Associates, also agreed that a cold formed steel system was the way to go. The combination of panelized loadbearing wall units, a deep deck composite floor system and a pre-finished exterior stucco finish made the job go quickly.

Panelized cold-formed steel brought a number of benefits to GK York Management Services for a five-storey apartment building in Ontario. The construction site was a narrow in-fill lot with overhead wires in downtown Brantford.

By designing smaller panelized wall pieces, crews were able to navigate the tight spaces and move prefabricated panels onsite by hand, eliminating the need for a crane to be staged onsite for the duration of the project. Instead, the crane would arrive once per week to unload steel and wall panels from the delivery trucks. Panelization not only allowed the crew to work effectively in tight quarters, but it also saved on crane costs without compromising work speed or quality.

Durability and sustainability One of the major material advantages of cold formed steel framing is its resistance to corrosion, mould and vermin, and therefore it does not require costly treatments or repairs typical of other building materials to ensure durability.

Cold formed steel can also play a role in meeting a project’s sustainability goals. Builders working to achieve green building certifications such as the Canadian Green Building Council’s Leadership in Energy and Environmental Design (LEED) can benefit from steel’s recyclability and the availability of data on environmental factors such as supply chain, raw material extraction and energy use. Manufacturing to tight tolerances prior to delivery can also reduce onsite waste, and steel waste that is generated can be easily collected for recycling or reuse.

Lowering total construction cost Cold-formed steel buildings offer significant cost benefits over other building materials when the total cost of construction is considered.

Steel framing’s strength-to-weight ratio significantly exceeds that of other building materials. Being strong and relatively lightweight, cold-formed steel systems reduce a building’s total load, which in turn allows the owner to save costs, beginning at the foundation.

Building cold-formed steel wall panels offsite reduces onsite labour costs and construction

The Seasons Retirement Residence in Cambridge, Ont. uses six storeys of panelized cold formed steel framing over a concrete podium. Photo courtesy of Canadian Sheet Steel Building Institute.

waste. Creating cold-formed steel components to exact measurements cuts the total project cycle time and improves quality control.

The predictability and accuracy of steel components speed up the process and allow follow-on trades to get to work sooner. Shorter construction time reduce interim financing costs for projects, narrow the window of construction-related liability, and allow for earlier building occupancy.

Steel is noncombustible in nature, so it minimizes the risk of any fire spreading within the building and to adjacent properties. Some municipalities mandate sprinklers and standpipes be in place on floors where work is underway on combustible construction requiring additional safety supervision such as fire watches during hot work — all costly safety practices not required for noncombustible cold formed steel buildings.

Several Canadian jurisdictions require builders to post 24-hour security guards at woodframed construction sites. One builder reported paying up to $10,000 per month for these security details. Steel-framed projects do not have such hidden or extraordinary site construction costs.

Conclusion Cold-formed steel not only permits flexibility for year-round building, but also lends itself to shorter timelines, sustainability, and cost savings. The growing experience with construction of mid-rise cold formed steel structures clearly demonstrates the inherent advantages.

Dr. Steven Fox has more than 35 years of industry experience. He is general manager of the Canadian Sheet Steel Building Institute (CSSBI), the national association representing the structural sheet steel building industry in Canada. He is also vice-chairman of the North American cold formed steel design standards committees representing the Canadian manufacturers.

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Steel

Forging Industry Partnerships

By Matt Jeppesen

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partnership years in the making is examining how universities can leverage the interplay between academic research and engineering education.

In parallel with a traditional research and physical testing programme, the Steel Centre is working with its members to imagine the future of construction. How will artificial intelligence and computational design change the role of engineers and designers? Where are new opportunities for collaboration across disciplines to ensure the construction industry catches the technology wave? What must change about the ways we educate young engineers to ensure their success in a rapidly changing work environment? The Steel Centre and its member organizations are working to establish the big steps that anticipate the next 10 and 20 years of structural engineering.

The Steel Centre continually works to “challenge traditional boundaries” (a key institutional value and unofficial slogan), in both education and research spaces, through industry–academic partnerships and new opportunities for educa26 construction business

tion and training. Especially in this latter realm, opportunities abound for updating and reshaping how engineers gain the skills they need to succeed as professionals. As such, education is the core of the Steel Centre mission. Reaching beyond the traditional research group, the Steel Centre seeks to become the hub for innovative engineering education. Building on the University of Alberta’s well-established reputation for the high quality of its engineering graduates, academic excellence is complemented by new, more immersive and hands-on experiences in the same settings that graduates will one day practice as professionals.

How do we do it? Steel Centre member organizations take a highly integrated role in the training of our young engineers. They provide feedback on ongoing research, share insights into technology trends in industry, and teach students the skills they’ll need to succeed from day one. Steel Centre students come from all levels of their academic career, from new undergrads to Ph.D. candidates. Everyone benefits from our close relationships with industry and

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up-to-date understandings of the changing professional landscape.

However, just interacting with industry leaves holes in experience and understanding. In consultation with industry partners, we launched a different kind of program, specifically targeting younger students at earlier stages in their training. The Steel Squad began in fall 2017 as a competitive-entry group to provide unique opportunities for undergraduate students interested in structural steel. Five students from any program year are selected annually, and remain in the Squad for the duration of their academic careers.

The Squad welcomed its first five members in 2017 and will grow to the full complement of approximately 15 members by fall 2019. The Steel Squad offers students real-world experiences such as shop tours, jobsite tours, job shadowing and mentorship, and hands-on demos such as an exciting welding day hosted in November by Collins Steel Ltd. As students cultivate ongoing relationships with industry partners, they start to piece together the variety of modes in which engineers function throughout a project. Enthu-

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siasm is extremely high from both industry and students to explore how to further expand the reach and impact of this new program.

One such attempt is just taking off: Steel Centre OutReach Engineering (SCORE), a student-led engineering consultancy that takes on real projects with Steel Centre member organizations. The primary goal is to provide opportunities for students to develop technical and interpersonal skills, while assisting the Steel Centre’s industry partners (clients) to obtain solutions for challenging problems without being constrained by conventional practices. By participating in SCORE projects, students gain from the years of accumulated insight at Steel Centre member organizations. Both industry professionals and students reap the benefits of forming new relationships built on authentic mentorship experiences. Students learn not only about structural design and construction, but also about the exciting operation and the pitfalls of running a business.

SCORE works exclusively with the Steel Centre’s member organizations, adding to the

already significant portfolio of membership benefits. SCORE offers M.Sc. and Ph.D. students, who have the technical fundamentals and fresh perspectives, the opportunity to solve difficult problems using innovative and creative solutions. After an initial startup period, students will evaluate the potential for undergraduates to join as well.

Education is the core of the Steel Centre mission...

SCORE plans to implement a “mini” integrated project delivery (IPD) model, whereby co-location and access to the people, technology and resources of clients encourage collaboration throughout the entire project life.

For organizations based in Edmonton, the team will travel to the client’s office one day per week for the duration of the project. For

companies not based in Edmonton, or those that cannot offer office space to the project team, SCORE will hold online meetings.

Once the project is completed, there will be a close-out meeting in which SCORE will present their work and deliverables to the client and, uniquely, to other students not involved in the project so that everyone has a chance to benefit from the experience, even if their schedules may not have allowed for full participation on a given project. At this time, the client will have an opportunity to provide constructive feedback to further enhance the learning potential of the experience.

Education is the core of the Steel Centre mission, and we will continue to work with industry partners, academic institutions and students to craft new opportunities to dramatically improve the educational experiences of engineering students and better prepare them for a challenging career in the world of construction.

Matt Jeppesen is program and communications administrator at The Steel Centre.

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Legal File

Protecting the Final Payment

by Nathan MacDermott

A

frustrating recent trend in the construction industry is the improper withholding of the final construction payment by the owner. In a number of recent discussions with contractors, we have been informed that owners have been waiting until the final invoice to dispute changes, allege project deficiencies and costing issues in most cases raising issues significantly smaller than the final draw, essentially holding the contractor hostage to either conduct repairs or absorb some additional costs.

Although it can be impossible to protect against every possible way that an owner might attempt to withhold payments, this article aims to inform contractors of some potential safeguards that can be imbedded in their contracts to protect the final payment.

Payment Certifier On larger projects it may be viable to have an independent third party involved to act as a payment certifier. This role can be filled by a consultant such as an architect, engineer, or other experienced professional. A payment certifier is generally put in place to determine if a project reaches milestones that trigger payments, such as foundation, drywall, or occupancy. As an independent third party, the payment certifier should not be interested in taking sides but merely determining if the level of completion accords with the release of an associated payment.

A properly worded contract with reference to the powers of the payment certifier should take the power out of the hands of the owner and allow the contractor to rely on their work to trigger payments. If after certification an owner continued to withhold payment, the contractor 28 construction business

would be in a much clearer position to lien or terminate. Although it would be convenient to have a payment certifier on every project, the cost of hiring an independent consultant can be prohibitive on many projects.

Other Contractual Terms Additional contractual terms can also be used to clearly protect against the owner’s retention of the final payment, however such terms must be negotiated in advance to be effective. One way contractors can protect themselves is to modify the language surrounding the deposit or retainer for the project. In the normal course, the parties will often agree that these amounts are to be used during the construction process to account for costs incurred by paying portions of invoices as they are issued. This type of provision puts the contractor in a position of weakness at the end of the project as they no longer have the leverage of stopping work on the project in order to pressure the owner into providing payment.

Instead of following this practice, the terms can be amended to allow the contractor to hold those deposits/retainers as security until after the issuance of the final project invoice. Once the final invoice is issued the contractor can use the deposit/retainer amount required to cover that final invoice and return any remaining funds to the owner. These changes can put the contractor in a position of strength at the end of the project instead of the normal position of weakness. This can also be achieved by having a minimum amount held as a deposit/retainer throughout the course of the project, still allowing for payments to be made from those funds while requiring the owner to top them up throughout the project.

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Another strategy that can be used, in conjunction with modifying the deposit/retainer terms or on their own, is to amend the payment terms to have more funds due earlier in the project. This can limit the contractor’s exposure to the risk of larger outstanding amounts having a significant impact on their business. This can also be achieved by using invoicing and project management strategies that leave minimal meaningful work near the end of the project (meaning the expensive work would have to be paid earlier to keep the job going) to again limit the amounts outstanding at the end to potentially be withheld by the owner.

Limiting occupancy or possession within the terms of the contract can also help to manage the contractor’s risk. Terms can be added to an agreement to allow the contractor to withhold occupancy or possession of the property until all accounts have been settled between itself and the owner. This however may only be a shortsighted strategy, as the owner will have rights in the property as the owner that can be difficult to limit. The owner can potentially go around the contractor to obtain any necessary approvals, or simply take possession of the unit when the contractor is not in possession.

Documentation One further level of protection that the contractor can use to protect the final payment (and any other potential disputes) is to document everything. Although this can be cumbersome in some circumstances it may mean the difference between prompt payment and a drawn-out process to obtain funds owing. Having the corresponding documentation to support amounts invoiced, project changes and cost discussions can be invaluable in compelling the owner to provide prompt payment. If a dispute arises, the party with the most complete documentation will often come out on top.

Although having signed confirmations is the best practice, it can often be impractical during the day-to-day operation on site. The use of simple follow up emails or text messages regarding discussions, changes or instructions can go a long way to avoid potential disputes in the future.

The protections afforded by the practices outlined above are by no means the only options when it comes to protecting the final payment on projects. They are also not perfect solutions, however they can provide peace of mind to the contractor when undertaking a new project.

Nathan MacDermott is an associate at Pihl Law Corporation in Kelowna, practicing in commercial litigation and construction law.

Legal File

The Consultant as Decision-Maker

by Gregory S. Miller

C

onstruction contracts govern the legal and business relationship between the contractor and the project owner.

They identify the respective expectations and the obligations of each party to meet those expectations. At the most basic level, the owner wants the project constructed as agreed and the contractor wants to be paid as agreed.

Of course, construction projects are rarely that simple. There is almost always a risk that the circumstances will change and, with those changes, the need to adjust the expectations and obligations. Unless managed carefully, changes can bring conflict.

Standard form construction contracts, such as CCDC 2 — 2008, are structured to attempt to ensure that changes can be managed quickly and fairly. One of the mechanisms for doing so is the appointment of a third party (typically the consultant) to make decisions binding upon both parties, including:

• determination whether the work is proceeding in general conformity with the contract documents; • rejection of work that it considers not to be in general conformity with the contract documents; • determination and certification of amounts owing to the contractor; • determination of amounts to be withheld on account of work which cannot be completed immediately due to no fault of the contractor; • interpretation of the contract documents “in the first instance”; • determination of substantial performance of the work; • valuation of defective work that it believes cannot be expediently corrected; • instructions it deems necessary to prevent an unresolved dispute from unnecessarily impeding full performance of the work.

In granting these decision-making powers, the parties specify limits in an attempt to eliminate capricious behaviour on the part of the consultant by: • providing that the consultant’s decisions be made only “in the first instance” and subject to challenge through dispute resolution mechanisms which do not involve the consultant; • insisting that the consultant not show “partiality” to either party in rendering its decisions.

What could possibly go wrong?

The appointment of the consultant as decision-maker carries with it obvious potential conflicts of interest, including: • the consultant is typically employed by the owner and might be perceived as owing some loyalty to it; • the consultant is often granted authority to act on behalf of the owner in certain circumstances and, again, might be perceived as owing some loyalty to it; • the consultant is often the designer of the project and, by human nature alone, might be perceived as inclined to make decisions to minimize its own risks.

Fortunately, in the writer’s experience, those decision-makers unfailingly apply high ethical standards to their roles. Still, the conflicts exist and tend to be exploited by one or other of the parties when disputes turn acrimonious.

How does the law view the role of the consultant in such circumstances? The Supreme Court of Canada definitively established the underlying premise of that role in its 1960 decision in Kamlee Construction Ltd. v. Town of Oakville.

The contractor strongly disagreed with decisions made by the “engineer” and refused to continue construction unless the engineer was changed.

This led to a termination of the contract by the owner and the contractor sued for damages.

Though the results were mixed as the matter moved from trial to appeal and to the Supreme Court of Canada, all of the courts confirmed that the engineer’s role was to act “judicially”, based on his own best judgment, when deciding the respective rights of the contracting parties and provided that he did so his decisions must be obeyed. Subsequent decisions in similar cases around the country have reinforced the view that as long as the consultant acts fairly, honestly and impartially without fraud or collusion, its decisions stand as valid and binding on the parties.

If a party is dissatisfied with the consultant’s decision in the first instance, what can be done?

CCDC 2 — 2008, and other standard form contracts, provide dispute resolution mechanisms which do not involve the consultant and are an opportunity to revisit the decision through negotiation, mediation and/or arbitration between the contractor and the owner.

Absent such mechanisms, the dissatisfied party may be confined to proving a breach of the quasi-judicial duty of the consultant as a means of avoiding the decision. In other words, the dissatisfied party would have to prove that the consultant failed to act fairly, honestly and impartially without fraud or collusion. That is going to be difficult in most cases.

In the typical construction contract, the contractor does not have a contractual relationship with the consultant and, so, does not have contractual rights against it. While it is possible for contractors to sue consultants for negligence in the preparation of designs and other matters, long-standing law makes it clear that negligence in the performance of the quasi-judicial duty associated with deciding between the respective rights of the parties is not a basis for recovery from either the consultant or the owner. Again, the consultant’s decisions will stand absent unfairness, dishonest, partiality, fraud or collusion.

Owners too are bound by valid (i.e., quasijudicial) decisions of the consultant. However, in addition to dispute resolution mechanisms under the construction contract, they typically have contractual rights as against their consultant. Accordingly, a breach of the consultant’s duty of care under that contract, while not invalidating the consultant’s decision, may entitle the owner to contractual damages against the consultant.

Gregory S. Miller, P.Eng., LLB is a senior litigation lawyer at Lindsay Kenney LLP in Vancouver. His preferred area of practice is professional liability in construction matters and he typically acts for architects or engineers in such matters.

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Industry News 2018 VRCA Silver Award Winners

Parq Vancouver

The Vancouver Regional Construction Association (VRCA) has revealed the Silver Award winners for the 2018 Awards of Excellence. One Silver Award winner from each category will be chosen as the Gold Award winner during the gala dinner Oct. 23, at the Vancouver Convention Centre.

VRCA’s Awards of Excellence is celebrating its 30th anniversary in 2018.

This year, 49 Silver Award winners were selected in 15 project categories on the basis of criteria that include the use of innovative techniques, new materials and/or exceptional project management.

Project award categories recognize general, trade, mechanical and electrical contractors, along with manufacturers and suppliers who deliver an entire project or a component of a project according to specific financial and non-financial criteria.

This year’s Silver Award winners include Parq Vancouver, UBC Brock Commons, Emily Carr University of Art + Design and B.C. Children’s and BC Women’s Redevelopment project — all winners in multiple categories.

The silver winners in the general contractor category are below. For the full list of winners, visit VRCA. General Contractors — Tenant Improvement Canadian Turner Construction Company Metro Vancouver Headquarters ETRO Construction Limited Parq Vancouver ICE Development Ltd. BCLS Park Royal Shopping Centre Ledcor Construction Limited Bass Pro Shops Outdoor World — Tsawwassen

Emily Carr University of Art + Design B.C. Children’s and BC Women’s Redevelopment project

General Contractors — Under $15 Million Jacob Bros. Construction Inc. acob Bros. Construction Office & Maintenance Facility Peter Kiewit Sons ULC Powell Spillgate Rehabilitation Installation Vancouver Pile Driving Ltd. Viterra Pacific Terminal Ship Loading System Upgrade General Contractors — $15 Million to $50 Million Graham Construction and Engineering LP Metrotown Station and Exchange Upgrade Graham Infrastructure LP Burrard Bridge Rehabilitation Smith Bros. & Wilson (B.C.) Ltd. Surrey Biofuel Facility Smith Bros. & Wilson (B.C.) Ltd. West Vancouver Public Service & Municipal Hall Building Urban One Construction Management Inc. UBC Brock Commons Phase 1 Student Residence General Contractors — Over $50 Million EllisDon Corporation Emily Carr University of Art + Design Fraser River Pile and Dredge (GP) Inc. Fairview Container Terminal — Phase 2 North Expansion ITC Construction Group 3 Civic Plaza

UBC Brock Commons

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Ledcor Construction Limited BC Children’s and BC Women’s Redevelopment Project Phase 2

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