Canada’s Most Widely read Condominium Magazine
october 2012 • Vol. 27 #7
Northern Ontario needs more condos
PM#40063056
Condo fees Borrowing money Social media
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Contents Focus: finances
8
12
18
22
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Understanding condo fees from an owner’s perspective By Farhaneh Haque Toronto’s condo market is showing early signs of slowing down By Shaun Hildebrand When and how a condominium can borrow money By Lou Natale Condo buyers have few options in Northern Ontario By Amie Silverwood
Departments
30
Legal Managing within the law
34
Management Move over kid. Social media is for grown-ups
38
Maintenance How to save more energy
46
Design Keeping up appearances
54
Regulations New standard formalizes steps to reduce construction/demolition waste
58
Technology Barriers to the adoption of new technology
60
Smart ideas
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Untitl
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Editor's Letter
Publisher Steve McLinden Editor-in-Chief Amie Silverwood Advertising Sales Paul Murphy, Melissa Farrell, Sean Foley Senior Designer Annette Carlucci
Lack of diversity Last time I was in Northern Ontario, I had a conversation with a friend who was considering
buying a condo. She is retired, lives alone and has been a long time renter since her husband passed away. For someone in her situation, buying a condo makes sense. A single, detached house would require too much work but if she were to move into a condo, she’d have the benefits of home ownership without much of the hassle. My advice to her was to make sure she knew the condo, the board and her neighbours before moving in. Buying a condo means buying into a community and you want to make sure that community is a healthy one before taking the plunge. My advice would have been sound if I was talking to someone in the GTA but, in retrospect, it wasn’t applicable to her situation. “Serious shoppers in Sault Ste. Marie have found few listings for condominiums in town. Like many Canadian towns, Sault Ste. Marie is a city with an aging population. And for those who find themselves living alone and healthy, the idea of a shared residence has a lot of appeal. And yet, this demographic has been largely ignored by developers who see detached houses as an easier sell. The city is trying to diversify their housing stock and some developers are coming on board to build multiresidential buildings in great locations. But in the meantime, my friend will continue to rent her apartment instead of owning one.
Editor-in-Chief Amie Silverwood amies@mediaedge.ca
Designer Jennifer Carter Production Manager Rachel Selbie Contributing Writers
Farhaneh Haque, Lou Natale, Lisa Cabel, Jessica Green, Vlad Platek, Kate Kasekas, Barbara Carss, Alexander Amigud, Shaun Hildebrand
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President Kevin Brown Accounting Manager Maggy Elharar 5255 Yonge Street, Suite 1000 Toronto, Ontario M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs. Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.
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6 CONDOBUSINESS | www.condobusiness.ca
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management Finances
Understanding condo fees from an owner’s perspective According to the 2006 census data, the biggest jump in home ownership rates was among young people buying condos. Judging by the number of cranes that pepper most urban areas skylines, this By Farhaneh Haque
comes as no surprise. But what exactly motivates a buyer to choose one condo over another? The 2012 TD Canada Trust Condo Poll found that while all buyers are attracted to the urban lifestyle that condos offer, affordable condo fees that add perceived value is a key factor in buyers’ decision-making.
8 CONDOBUSINESS | www.condobusiness.ca
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Finances
Providing value from monthly condo fees T h e T D C a n a d a Tr u s t C o n d o P o l l found that Canadian condo buyers are comfortable paying condo fees when they see value for their money. Threequar ters say monthly fees are wor th the extra expense to enjoy the benefits of living in a condominium. However, it’s impor tant for proper t y managers to clearly communicate how monthly condo fees are allocated in order to demonstrate the value, highlighting that monthly fees are put towards things that will improve the homeow ners’ quality of life. T h e to p f i ve fe a t u re s C a n a d i a n s look for as value for their money when comparing condo buildings are good b u i l d i n g s e c u r i t y, e n e r g y - e f f i c i e n t building features and attractive interior design, private balcony, parking spot and close proximity to public transit. Most operating costs fall directly in line with these priorities. With this in mind, property managers can communicate to tenants in various w ay s , su c h a s a re g u l a r tow n h a ll meeting, to show that their fees are being put to good use each month. For example, it would be worth highlighting whether the building provides enhanced security or enhanced m a inte n a n c e s e r v i c e s . Tr a n s p a re nt and proactive communic ation about the structure and allocation of monthly fees will demonstrate to condo owners how the monthly upkeep covered by their condo fees not only benefits their current lifestyle but their unit’s resale value as well. One -third of condo buyers (35 per cent) are willing to pay up to $200 per month in condo fees, 44 per cent would pay up to $400 and 17 per cent would pay up to $800.
fif t y per cent of the monthly condo fee into the Gross Debt Service (GDS) calculations when qualifying a potential buyer, which means that a high monthly maintenance fee can impact a buyer’s abilit y to qualif y for a mor tgage. It’s i n e v e r y o n e’s b e s t i n te r e s t to b e transparent about building fees from
Easing concerns about condo fees Building management can do its part to help buyers clearly understand all of the c ost s of a c ond o purc h ase. Condo fees have a significant impact on a buyer ’s abilit y to qualif y for a mor tgage. Lenders generally include
the outset and encourage potential buyers to discuss those costs with their bank before looking too seriously at properties. One element of condo fees that can make buyers nervous is the potential to increase, which will af fect a homeowner’s monthly budget. With an
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Finances
understanding of potential fee increases, prospective buyers can prepare their budgets by building a buffer into their monthly housing costs. Condo corporations can encourage this by discussing the factors that could result in a fee increase to help residents prepare their finances. Property managers should also clearly communicate the condo corporation guidelines and status certificate. The status certificate provides
essential information concerning the financial status of a unit and of the condo corporation as a whole. It serves to inform prospective owners of the fees, any increase that is going to come into effect, any special assessment that is being contemplated by the condo board, and any arrears or liens that a par ticular suite might have pending against it. This informs potential buyers about their unit as well as the physical
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and fiscal situation of a building before committing to the purchase. Gross Debt Service is a measure that financial lenders use as a rule of thumb to m e a su re a p ote nt i a l b o r rowe r ’s abilit y to carr y a loan. Monthly payments for all debt and obligations (car payments, mor tgage payments, condo fees, etc.), should not exceed 40 per cent of monthly income. Creating a positive buying experience can pay off O pen, honest communic ation about p ro p er t y m an a g ement an d ensuin g fees is the key to creating a positive experience for both current residents and prospective buyers. Make a point o f r e g u l a r l y te l l i n g r e s i d e n t s h o w their monthly fees are being put to use so that they trust they’re getting good value for their money and their best interests are being addressed. Remember, your residents are your b e s t wo rd - of - m o u t h a d vo c ate s , s o create a living experience wor th bragging about. 1 Fa rh a ne h H a q u e is the D i re cto r of M o r tg a g e A d v i c e w ith TD C a n a d a Trust. With over 18 years of mortgage and lending experience, Farhaneh has helped thousands of Canadians find home financing solutions. I n a d d i t i o n t o p ro v i d i n g a d v i c e , products and services for Canadians i nte re ste d i n fi n a n c i n g a h o m e, Farhaneh and her team have access to research commissioned by TD Canada Tru s t , w h i c h h e l p s t o u n d e rs t a n d current Canadian consumer attitudes and habits relating to a number of home ownership topics, from choosing and buying a first home, to renovating and greening a home, to understand ing gender, regional and other demographic preferences. Farhaneh shares her expertise at an online community called TD Helps for home buyers at www.tdcanadatrust. com/homeownership. The online c o m mu nit y a l l ows h o m e b uye rs to learn from each others’ experiences, share stories on a wide range of home financing topics and pose questions to TD experts.
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™Trademarks of or used under license from Rogers Communications Inc. or an affiliate. © 2012 Rogers Communications. 11237_Condo_October_2012.indd 11 Untitled-6 1
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Finances
Toronto’s condo market is showing early signs of slowing down By Shaun Hildebrand
Toronto realtors and home builders are
reporting fewer sales and softer price growth for condos this
year. Condo resale transactions are expected to decline by approximately ten per cent in 2012 following two consecutive record-breaking years, and average price growth is expected to slow to about one per cent.
12 CONDOBUSINESS | www.condobusiness.ca
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Bleed Trim
Finances Live
Slower sales will bring activit y back in line with its fundamental drivers (employment, income and population grow th) while slower p r ic e g row th w ill hel p m ake c o n d o ownership more af fordable as the fu n d a m e nt a l s c o nt i nu e to i m p rove. A growing supply of condo units will respond to the needs of an expanding work force.
Units currently under construction will be completed over the course of the next few years and the majority of condo units will be purchased before c omp letion. A b out fi ve p er c ent of completed condo units are t ypic ally left unsold. H o w e v e r, t h e r o l e o f i n v e s t o r s i n t h e c o n d o m a r ke t h a s b e c o m e m o re p ro n o u n c e d i n re c e nt ye a r s .
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Investors are purchasing more at preconstruc tion sales events and their units constitute additional supply at completion of construction. Close monitoring of new projects reveals that, on average, ten to 20 per cent of units are listed for sale on the MLS system within the first year of completion. With completions expected to remain high in the years ahead, investor-held units could increase resale supply but also help meet continued growth in demand for rental. T he market has proven its abilit y to absorb supply increases as resale prices have been consistent following a record -high number of completions in 2011 (nearly 18,000 units). However, grow th in condo values has slowed this year as the market has become more balanced. This has flagged the potential of lower capital appreciation to those investors looking to buy new pre - construction units. Less investor demand has begun to slow new condo sales in recent months. Urbanation Inc. reported that 36 per cent of units were sold in new projects opened in the second quarter of 2012, this is down from an average of 61 per cent for projects that opened in 2011. The resulting rise in the number of unsold units in pre - c onstruc tion has led developers to raise incentives, redesign layouts and hold of f on opening additional projects. This year, approximately 18,000 new condo units are expected to sell, which is down from nearly 2 9,0 0 0 sold in 2011. A slower pre - construction market this year will lower construction starts for condos next year and completions in the years to follow, thereby limiting resale supply pressures and potential risks to the market in the future. Recent slowdown in market activities has also encouraged more investors to hold onto their units after completion rather than list them for sale. This has added units to the rental supply. A s vac ancy rates in Toronto have trended lower over the past several years (1.4 per cent according to the Fall 2011 CMHC Rental Market Survey), rent levels are rising and investors are noticing. After all, condos represent a significant source of new rental supply
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Untitl
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Finances
“Condos represent a significant source
of new rental supply in the city as relatively few purpose built apartments have been constructed in recent years.” in the city as relatively few purpose built apartments have been constructed in recent years. Condo units, whether ownerPro occupied or rented, will remain important in Toronto. The latest census d at a rele ase d by St atistic s C an ad a Establishe Establi suggests that an average of 37,500 new Manageme Manag households were formed each year in provider. provide O the Toronto Census Metropolitan Area between 2006 and 2011. BUILDIN BUIL W ith low - rise housing limited & MONIT & MO t o manage man f e w e r t h a n 2 0 , 0 0 0 c o m p l e t e d units p er ye ar due to develo pment savesave you geared towards intensific ation, land annual annu u s u p p l y a n d i nf r a s t r u c t u re c a p a c i t y ENERGY ENER constraints, the condo sector can fill range rang of gap. Household sizes are shrinking, the existing exist empty-nesters are downsizing as the of the ofpopulation th en ages, and commuting times Contact Cont and costs are rising, all trends that are assessm asse expected to continue and boost the appeal of high-rise living. 1
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Finances
When and how a condominium can borrow money By Lou Natale
In a perfect world, a condominium
corporation would never have to consider
borrowing money in order supplement its reserve fund or to
undertake a major repair or replacement. But we don't live in a perfect world, and too often, both new and old condominiums are confronted with a financial dilemma for which borrowing money is the most appropriate way to deal with the situation. 18 CONDOBUSINESS | www.condobusiness.ca
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Finances
“By making the building more energy
efficient, the corporation can use some of the energy costs savings towards paying back the loan, thereby lessening the burden on the unit owners.” CARMA_CondoBusiness_01-19-2009_CS2--F.pdf
2/3/09
5:41:35 PM
There are many reasons why a condominium can find itself in a financial crunch. Some of these reasons are avoid a b le w ith pro p er fin anc ial planning and diligence by the board of directors. But some situations arise totally unexpectedly as a result of some unknown construction defect with the building. Whatever the reason, it’s up to the board of directors with guidance from the proper t y manager to find a solution. Let’s take a hypothetical situation to illustrate how borrowing money by a corporation makes sense and how the board should implement the decision. Hypothetical situation The board of direc tors of a 15 - ye ar old high - rise c ond ominium has just re c e i v e d i t s u p d a te d re s e r v e f u n d study. The total reserve fund amount has always been considered healthy and consistent with the previous fu n d i n g p l a n s . H oweve r, w h at w a s recently discovered through the engineer's inspection of the site was that many of the balconies w e re s h o w i n g s i g n s o f s i g n i f i c a n t deterioration which require an im m e d i ate m a j o r re p a ir, s o m et hin g t h a t w a s n o t c o n te m p l a te d i n t h e previous reser ve fund study for another ten years. It was quickly decided by the board and manager that a special assessment is not the way to finance a situation like this because the owners would have a hard time paying for such a large amount in such a short period of time. As well, passing a special assessment w i l l j u s t s e t a b a d p r e c e d e n t fo r future b o ard s to think th at sp e c i al assessments are the solution to getting
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Finances
out of a financial dilemma and that's not the case. Rather than just borrowing enough money to pay for the balcony repair, the board decides it should also undertake an energy retrofit project, including the replacement of the aging boilers, the installation of a variable fresh air intake system and replacement of hallway and underground garage light fixtures.
By making the building more energy efficient, the corporation can use some of the energy costs savings towards paying back the loan, thereby lessening the burden on the unit owners. Although the monthly common expenses will increase as a result of the loan, the board is able to illustrate to the owners that not only will the balconies be repaired and made safe,
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the building will consume less utilities and enjoy cost savings for many years. Legal requirements to borrow A c c o r d i n g to s e c t i o n 5 6 ( 3 ) of t h e C ondominium Act, in order for a corporation to borrow money, a specific b o r row in g by l aw i s re q u ire d to b e passed by the board of directors and then approved at an owners' meeting by a majority of the owners of all units in the building. For example, in a building containing 110 residential units, the ow n e r s of 5 6 u n i t s re p re s e nte d i n person or by proxy must vote in favour of the bylaw at a duly called owners' meeting. S ection 5 6 ( 3) of the Act, h o w e v e r, d o e s c o n t a i n l a n g u a g e which states that a corporation may not need a specific borrowing bylaw, so long as the expenditure for which the borrowing is required is set out in the corporation's budget. Case law in Ontario has confirmed that if a corporation has an existing g e n e r a l b o r ro w i n g b y l a w o r s o m e a u t h o r i t y to b o r ro w b a s e d o n t h e p r o v i s i o n s o f t h e c o n d o m i n i u m' s declaration, then a specific borrowing bylaw is not required so long as the expenditure for which the borrowing is needed is set out in the budget. Except under certain circumstances, I do not recommend that a corporation borrow money without going through the for m al pro c ess of presenting a b or row ing bylaw to the ow ners for their approval. I say this par ticularly i n l i g ht o f t h e re c e n t f r a u d c a s e s involving condominium loans. Security documents and lending institutions T he re a re seve r al ins ti tu ti o n al a n d non-institutional lenders which of fer financing to condominiums for the purposes of supplementing a corporation's reser ve fund or to pay fo r a m aj o r re p air o r re p l a c e m e nt . Oddly enough, not all banks and trust companies are set up to lend money to condominiums, except of course if they can register a mor tgage on a su p er intend ent 's unit or p er h a ps a guest suite.
20 CONDOBUSINESS | www.condobusiness.ca Premier CONDO ad 2007 March FINA1 1 11237_Condo_October_2012.indd 20
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“Oddly enough, not all banks and trust companies are set up to lend money to condominiums.”
Lending money without being able to offer traditional security, like a mortgage or personal guarantees, has frustrated boards of directors when tr ying to source borrowed money. Fortunately, there are a few lenders that understand condominiums. Typically, the main documents and security for a condominium loan are t h e L o a n A g re e m e nt a n d G e n e r a l Security Agreement. Contained in these agreements is an assignment by the condominium to the lender to permit the lender to special assess the owners or otherwise collect the common expenses directly from owners in the unlikely event that the condominium fails or neglects to repay the loan to the lender. The lender does not register any security or notices against the units. Although the loan documentation and security agreements contain many standard provisions, it is essential that the corporation's solicitors review all documentation prior to the board executing the documents in order to ensure that the loan documents are consistent with the Condominium Act and the Corporation's declaration and bylaws. 1 Lou Natale is the chair of the Condo Law Group at Fogler Rubinoff LLP, which is a full-service law firm based in Toronto. Lou and his colleagues represent hundreds of condominium corporations and provide advice to property managers, unit owners and developers throughout the Greater Toronto Area, the Golden Horseshoe and Resort Country. Lou was one of the founding members of the Huronia CCI Chapter and is a regular speaker and contributor at ACMO/CCI events, including the annual National ACMO/CCI Conference.
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FEaturE
CONDO BUYERS HAVE FEW OPTIONS IN NORTHERN ONTARIO
T here are ver y few condominium communities in Sault Ste. Marie. First time buyers are finding detached, single family homes affordable but empty nesters are looking for more options. In fact, the demand for condominiums is so high that one developer is getting calls daily about their project though their condominium hasn’t even received final approval from the province much less reached the design stage. All they have at the time of writing is a golf course, city approval for 50 condominium units and a list of 20 people who want in. By amie SilVerWood
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Unlike Thunder Bay, which has had a s te a d y s t re a m o f c o n d o m i n i u m s built over the past few decades, 70 per cent of the housing stock in Sault Ste. Marie is privately owned, single family homes with only a few larger condominium apar tment buildings on the water front that were built in the late 70 s or early 8 0 s. But S ault Ste. M arie has an aging p o pul ation and many of these baby boomers would like to stop mowing the lawn and shoveling snow in this Nor thern Ontario town. The city sees a benefit to diversifying the residential developments and cit y planner, Don McConnell has been doing his best to convince developers to include multiresidential units in their plans. “ W e ’r e b u i l d i n g t h e a p p r o p r i a t e amount of housing for a communit y of our size and our economic
circumstances. We’re building a poor mix; almost exclusively single family. A nd just in the last t wo or three years, we’ve seen that doesn’t work. We’ve seen the development industry starting to come along and say okay. Let’s build something else.” M c C o nnell c ites an ex am p le of a developer who recently gained a p p r o v a l fo r n i n e to w n h o u s e s . H e decided to start by building only five to see if the market has an appetite for this t ype of development and he sold them quickly. T he tow nhouses were all priced above $300 thousand, which is an expensive home in Sault Ste. Marie, but they were sold right away and he has moved on to build the second set. The housing mix in the Soo is behind other cities in the province and McConnell blames the affordability of the single family homes. He explains
many young people are attracted to the area because they can afford a nice first home at a reasonable price compared to other regions. “Pe o p le l o ok at w h at ’s the c ost of a new condo and then they come back and they look at what can I buy for $250 0 0 0, $ 30 0 0 0 0 as a single family house and the answer is quite a bit. A nd that ’s re all y b een a big function of the market.” First time home bu yers may not b e i nte re s te d i n c o n d o m i n iu m s i n S ault Ste. M arie but retirees have money to invest in something that would make their lives easier. Shared living provides more peace of mind fo r t h o s e w h o p a c k u p a n d h e a d south for weeks or months during the winter. M c C onnell explains that the cit y had a program in effect to see if it could encourage private sector
24 CONDOBUSINESS | www.condobusiness.ca
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investment in the downtown and over a 3 . 5 ye ar p er io d , there was a b out $20 million invested. It had a strong focus on commercial revitalization. It brought in new business to the main s t re et a n d rev i t a l ize d a n u m b e r of other businesses. It also included a 35 unit apartment building and a 24 unit condominium. The program was so successful the city is now looking at adding a second phase to the program. “T he second go round on this, we’re going to have a strong emphasis on residential development. See what we can do to get more residential development in the downtown. And that would be in the form of condos, most likely.” Developers are beginning to come around to McConnell’s thinking. There are a few condominium projects that h a v e b e e n a p p r o v e d o r a re i n t h e planning stages. McConnell mentions a few semi- detached and townhousestyle condominiums in the works and an old paper mill that will be restored into a mixed use community not unlike
Condos in Northern Ontario The cost of a single family, detached home is relatively inexpensive in Sudbury and Thunder Bay compared to house prices in Southern Ontario but the prices have been rising steadily making them less affordable to first-time buyers. Sudbury has an average price of $243 457 for the first eight months of the year up from $105 000 in 1999 – more than a doubling of the average house price. Developers are reacting to this rise by bringing in higher density developments through semidetached units and some condominium development. Thunder Bay, on the other hand, is dealing with a severe listings crunch that has caused average house prices to rise 15.3 per cent year-over-year. They went from $163 000 to $193 363 this year for the first eight months. According to CMHC analyst Warren Philp, it’s the biggest increase since at least 1980. “We have reasonable demand but listings are going down, down, down,” says Philp. “And my theory is that we’ve got an aging baby boom population, many of whom are done in terms of their buying and building and not necessarily ready to move on to the next phase of housing for them, whether it’s condo living or apartment living or retirement home living, and they’re staying put in their homes.” He explains that since this large demographic isn’t participating in the real estate market to the same extent, listings that would normally have been coming on stream have dried up. There are still relatively low levels of new construction, so the new home market isn’t necessarily meeting the demand. Existing homes are selling at higher prices and that’s spilling into the new market as well. So in Thunder Bay, it’s not only empty nesters but anecdotally, first-time buyers as well, who are attracted to condo buildings especially when they get priced out of the single family market and are looking for something more affordable.
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28 CONDOBUSINESS | www.condobusiness.ca
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Managing within the law Employers may mean to provide their
employees with fair employment contracts but
By Lisa Cabel
when a dispute arises, parties often disagree on the rights they believe they have. How does an employer avoid these pitfalls? Below are certain tips to keep in mind when drafting employment contracts.
30 CONDOBUSINESS | www.condobusiness.ca
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Legal
the employee sign before the first day of work and not on the first day of work. Signing on the first day of employment might also be construed by the court as a form of duress. In addition to the standard terms of position, hours of work, salary, benefits and vacation, some of the main terms and conditions that we recommend to be included in an employment contract are as follows. Duties If an employee holds many duties or if it is unclear from the employee’s title what they are, the duties should be described broadly in the contract to give the employer flexibility. If the duties are clear, then a description might not be necessary and a general clause could be used instead. Probationary clauses Although the Employment Standards Act, 2000 (“ESA”) provides for a probationary period, an employment contract should still set out the conditions so that both parties are aware of their rights. Below are some points to consider.
Clear and unambiguous contracts Although oral contracts are acceptable, main terms and conditions should be in writing to ensure certainty. Written contracts also provide evidence of the three essential criteria in the formation of a valid contract: offer, acceptance and consideration, which is a benefit given to the employee often in the form of salary or commissions. Em p l oy m e nt c o nt r a c t s m u s t b e entered into freely without the employer’s undue influence, or else they risk being unenforceable. To ensure the contract’s enforceability, the employee should be given at least a week to review the contract and its addenda and to seek independent legal advice if required. To ensure there is sufficient consideration for the contract, have
Firstly, the term “probation” should be used. Secondly, although there is no requirement that the probationary period be limited to any length of time, most employers will choose a three-month period. If the period is longer than three months, the employer should provide that the employee will receive the minimum ESA notice requirement, if the dismissal occurs after three months but within the probationary period. To ensure there is no confusion, it might be wise to include specific start and end dates of the probation. Thirdly, the employment contract should stipulate the purpose of the probationary period, which is to assess the probationary employee’s suitability for the position. The employer might also choose to include the fact that vacation cannot be taken during the probation and that the probation may be extended where necessary. Termination clauses Where employment is terminated without cause, the ESA provides for a minimum notic e re quirement. H owever, any
Write clearly It is important to keep the contract free of any ambiguities since they will be construed in favour of the employee. To keep the contract free of uncertainties, keep these tips in mind: - Use short sentences. They are easily severable if the court finds them unenforceable; - Bring onerous clauses to the employee’s attention; - Attach an addendum of all documents, such as an employee manual, that refers to important employment terms and conditions; - Include a clause stating that the employment contract is the only agreement relied on by the parties, and that there are no other representations; - Ensure that the terms and conditions in the employment contract correspond exactly to the offer letter.
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“Given the difficulties involved in drafting even a seemingly simple clause, obtaining legal advice when crafting employment contracts is crucial.”
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enforceable terms or conditions under the employment contract that provide a greater benefit than the ESA requirement will prevail. To ensure certainty, the employment contract must provide that the ESA applies and cannot provide for less notice than the ESA requirement. Where an employer wants to include a specific notice period, the period should be long enough to meet any potential statutory notice period requirement, such as this example: “should you be terminated for reasons other than cause, then you are
4:10 PM
entitled to a minimum of X weeks notice, or pay in lieu of notice, and in any case will receive no less than what is required under the ESA, as amended from time to time.” Other terms that should be considered and added where appropriate are: allurement /no inducement, restrictive covenants, intellectual property rights and confirmation that the employee received independent legal advice or, in any event, the opportunity to seek independent legal advice. Given the difficulties involved in drafting
even a seemingly simple clause, obtaining legal advice when crafting employment contracts is crucial. With a proper contract, both parties will be aware of their respective rights, which will help to prevent future termination costs and disputes. 1
Lisa Cabel is a partner in the Toronto office of Borden Ladner Gervais LLP. Lisa practises in the area of Labour and Employment law. She can be reached at 416-367-6217 or lcabel@blg.com.
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Move over, kid. Social media is for grown-ups By Jessica Green
In 2011 alone, YouTube reported more than one trillion views. That’s
140 views for every person on the planet. Facebook’s following of 750 million users is nothing to scoff at either. Having more than doubled its number of Canadian users from six to 14 per cent since 2009, LinkedIn is
no slouch. And you know that networking site that forces you to craft a thoughtful statement in 140 characters or less? It’s called Twitter and it hit more than 140 million users last year, so stop pretending that you don’t know how to pronounce it and start getting chatty. Social media by numbers According to Ipsos’ most recent C anadian Interactive Reid Repor t special feature on Social Networking, h al f of C an a d a's p o p ul ati o n , o r 17 million people, is involved in some form of social networking. Since 2010, the number of C anadians who visited a social media site at least once a week has climbed from 35 to 50 per cent. A nd it ’s not just pimp l y teen a g er s getting their kicks while mom and dad are out: the majority of 35 to 54 year olds and more than 40 per cent of those over the age of 55 are pinning, posting, liking and re-tweeting Honey Boo Boo lines in real time. That number is only expected to increase—dramatically. Step it up S teve M o s s o p, P re s i d e nt of I p s o s
R e i d ’s W e s t e r n C a n a d a p r a c t i c e , explains that social media users have spent the last several years building b r a n d a w a r e n e s s . N o w, i t ’s t i m e to commercialize this awareness by engaging consumers. But there’s a right way to do it. The first step is determining whether social media is right for your business. Let’s rephrase that: are you a B2C company that wants to expand your reach, bring people to your website and nur ture leads into sales? If you answered yes, then you’ve completed the first step. Do: due diligence N ex t , t ake s o m e t i m e to re s e a rc h what other companies are doing. What platforms are larger developers using? Are boutique firms doing it better? How are they engaging potential buyers?
W h et h e r t h ey ’re r u nni n g c o nte s t s , microblogging or posting basic building updates, the competition is alread y ahead of you. So find out what they’re doing, read some tutorials and do it better. Just make sure that the platform fits the pur pose, which is to reach your intended audience with frequent, p r a c tic al, rel evant info r m ati o n th at initiates conversation. Put in some face time Build a Facebook business page by using the step-by-step instructions and user support provided right on the site. In addition to built-in statistics, which help you monitor the efficacy of your campaign, Facebook is a great way to connect with current and prospective buyers for several reasons. For one, it builds community. October 2012 35
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Feature a site super or a photo of Find your voice t h e b o a rd; p o s t p h oto s of ow n e r s After Facebook, Twitter is the ultimate who have made interior changes and social tool. W ith its own vernacular enhancements to their units; launch a – h a s ht a g s , D M s , re - t we et s – i t ’s balcony garden contest and showcase daunting on first click. But perhaps it’s images of the winner and runners up. the forum’s simplicity that’s throwing Remember, Google takes cues from us off. What’s so difficult about crafting s o c i a l m e d i a vote s of c o nf i d e n c e, one or two targeted sentences a couple meaning that the more people share of times a day? Not much, if you have a content from your website, the more plan. That is, what you want to say and DBS_Aug07_SOLISCO.pdf 12:41:42 PM who you want to listen will determine your search engine ranking will7/31/07 improve.
your tweets, so mix it up by striking a balance between promotional content and general interest content. The more yo u t we et , the m o re yo ur a c c o unt will be viewed, thereby increasing the probability of more followers. Once you have created your account, promote it via newslet ters, email signatures, corporate website, property website, Facebook—everywhere. Get reel Does your property have a video? If not, it should. Online marketing firms like Rentseeker.ca can produce a film for about the same price as one print ad. The difference? “Video is a one -time investment and the second it’s online, it’s there to stay,” says Chaim Rivlin, Rentseeker’s CEO. Once you have the video, make sure it’s hosted on YouTube. “Every video posted on YouTube can be optimized with titles, descriptions, keywords and tags,” Rivlin adds. “The payoff can be immense, particularly when it comes to driving traffic to your website and increasing your brand’s search engine visibility.” W hile traditional corporate videos are informative, light and entertaining behind -the - scenes videos can be particularly influential. Creating videos o n to p i c s l i ke a m e n i t i e s , p r i d e o f ownership, financing options and price ranges is a relatively easy undertaking. U p l o a d i n g t h e v i d e o s t o Yo uTu b e is even easier, so have fun with the process. Interview residents and staff who are willing to be spokespeople for your property. Just ensure the message is clear: you must live here.
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Connect more Like many people, you probably think LinkedIn is only for promoting yourself. However, LinkedIn now has Company Pages, which are becoming increasingly popular marketing tools. The fastest growing demographic on LinkedIn is recent graduates, many of whom are looking for places to live. Try engaging them by encouraging the participation of condo owners, who can talk about o p erations, pro p er t y t y p es, pr ic es, locations, sizes and amenities available. LinkedIn also has a useful feature th at all ows user s to re c o mmen d a
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“Mix it up by striking a balance between promotional content and general interest content.”
product or service, which is then sent out to all of their connections. Talk ab out an org anic and ef ficient way to p ro m ote yo u r c o m p a ny! A m o n g its many benefits, LinkedIn functions as its own search engine for finding c o m p a ni e s a n d j o b s . A s a n a d d e d bonus, all information posted publicly shows up in search engines. Final answer Finding your niche, stimulating conversation and converting leads to web traffic and, ultimately, sales can take up to a year. It’s time consuming and utterly demoralizing when you can’t find that “thing” that bridges the gap between your brand and your market. However, with time, persistence and some trial /error, you’ll star t making friends. You might even star t using social media to provide online property tours and schedule showings—through an app. In the meantime, don’t retire those glossy print ads, towering storyboards and backlit signs just yet. They’re all a p a r t of to d ay ’s m a r ketin g m at r i x and each piece is just as impor tant as the nex t. A nd those once - pimply teenagers? They make up the 4 8 per c ent of the p o pul ation th at c he cks Facebook the second they wake up. They’re also the ones in suits looking to buy. 1 Jessica is the owner of Cursive PR, a Toronto-based communications consulting firm. For more information, email Jessica@ CursivePR.ca. For practical, relevant information that is updated daily, find CondoBusiness on Facebook, Twitter and on our website at www.condobusiness.ca.
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Maintenance
How to save more energy Caring condominium board members and property managers think often
By Vlad Platek
about saving energy and protecting the environment. Many have
captured the low-hanging fruit and yet prospective purchasers are looking for lower energy costs, lower maintenance fees and greater affordability to attain higher resale value. The pressure is on to keep one’s focus on energy savings! But what else can be done?
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Over 6 5 per cent of the building’s energy use is at tributed to lighting, space and water heating and suite and common area cooling. A lthough gas prices have fallen, electricity rates will continue to increase 10 per cent each year, we are told. In the past few years, water rates have increased significantly bringing energy conser vation to the forefront for every manager. So our objective is to review some retrofit ideas many managers have implemented and identif y new o p p o r tu ni t i e s to re d u c e e l e c t r i c i t y demand, gas and water consumption. Lighting T here are three major areas where
significant savings in lighting energy can be achieved. First, retrofit in-suite lamps with LED and CFL lamps in order to save up to 80 per cent of electricity. Second, retrofit 24/7 underground parking areas and all hallways with T-12 to T- 8 to T-5 to LED lamps. Either is good, but some engineering is required. Finally, supplement energy retrofit efforts by introducing motion sensing technology to save 50 per cent of electricity use in underground parking areas and hallways. Motion sensors dim lighting levels and are permitted under the Ontario Building Code. Toronto has passed a bylaw allowing for motion sensor installation in parking areas and hallways, but not in stairways.
Heating There are energy-saving solutions for both electrical and natural gas systems. In the case of electric heating where h e a t i n g i s a c h i eve d u s i n g e l e c t r i c b a s e b o a r d s , h e a t p u m p s o r P TA C units, controls can be added to limit the maximum temperature set tings. For the newbie at heart you can use local programmable thermostats. Like the VCR, some programming is required. Or otherwise, let the experts show you how you can add a networkbased programmable thermostat system to limit the maximum temperature setting in each suite. This will produce additional cost savings by limiting demand (K W ) in addition October 2012 39
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to consumption (KWh). As a last ditch effort, you may want to implement a submetering system for electric heating. If you are using natural gas boilers, you will likely have a set of boilers for space heating and a set of boilers for domestic hot water. O ther wise, an exchanger is included. In both cases you should first consider and upgrade any atmospheric boiler to a modulating
type with over 85 per cent efficiency. M o n i to r, m e a s u re a n d c o n t ro l t h e operation of these boilers using a webbased building automation system with simple browser interface. Especially in the shoulder periods (spring and fall) the boiler rooms a re r u nni n g h ot w hil e t h e o u td o o r te m p e r atu re s a re sw in g in g u p a n d d o w n l i ke a y o y o . E v e r y o n e u s e s
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outside temperature sensors to control the central boilers but indoor temperature sampling should be used to modulate or stage the boilers to work less and use less energy. Night setback is a ver y good form of energ y saving strateg y, but you need to add some sophistication to your boiler plant. Likewise, fan coil units should be controlled by indoor (in-suite) motion sensors and networkbased programmable thermostats to bypass flow to the suite and lower the temperature by two or three degrees inside the suite while the suites are not occupied. As a result, the boilers will operate less and save more energy. Domestic hot water heating As for heating boilers above, upgrade any natural gas atmospheric type DHW boiler with over 85 per cent efficiency. Incentives are available from Enbridge and Union Gas. Monitor and control maximum w a te r te m p e r a t u re s u s i n g a w e b based system for ease of use. If the w a te r i s h e a te d u s i n g e l e c t r i c i t y, im p l e m e nt a d e m an d m an a g e m e nt s y s te m , to l owe r t h e K W d e m a n d on your electricit y bill and also get incentives to substantially lower the cost of implementation. You can get incentives up to $800 per KW saved. Space cooling You may be cooling your building with chillers or heat pumps or individual PTAC units. There are energy-saving solutions for these types of systems as well. Add controls to limit the minimum cooling temperature settings using local programmable thermostats or, better yet, take a look at a network- based programmable thermostat system to limit the minimum temperature setting in each suite and also allow additional cost savings by limiting demand (KW) in addition to consumption (KWh). C o nt ro l f a n c o i l u n i t s b y i n d o o r (in-suite) motion sensors and networkbased programmable thermostats to bypass flow to the suite and decrease the cooling temperature by t wo to thre e d e g re es insi d e the suite,
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Maintenance
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whenever the suites are unoccupied. As a result, the chillers will operate less and save more energy. Wireless monitoring and control All energy can be measured, metered and controlled. New wireless technologies like Zigbee - based mesh networks are reliable and can monitor anything around the building: whether it is temperature, humidity, power, light
levels, water flow, movement, etc. You can measure and monitor all the utilities and you will be in a better shape to formulate a control strategy. Metering of water, gas and electricity We are all familiar with sub -metering of electricity. But another option is to sub-meter gas and water consumption for each and every suite. As a result of
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bulk purchase of electricity There has been a lot of mis-information about bulk purchasing of electricit y directly from third parties instead of from your Hydro utility. There are also companies that specialize on checking hydro bills to make sure that you are not overbilled. Get well informed about this issue and start saving a substantial amount of money by bulk purchasing. infrared scanning and maintenance of electric equipment Prevention is the best medicine. With ex tensive use of electronic devices in the homes, the consumption has increased substantially. As a result, t h e b r e a ke r s s e r v i n g t h e c i r c u i t s may be overloaded or close to being overloaded and may pose a danger. With time, power panels and breakers sh o u l d b e ins p e c te d a n d inf r a - re d scanned for wear and tear and overcircuit consumption. This preventative maintenance will go a long way to identif y potential hazards. A well maintained plant is cost effective in the long run. incentives As in all cases, there are incentives available for energy audits. An energ y audit will identif y all of the o p p o r t u n i t i e s t o s a v e e n e r g y. I n a d d i t i o n , yo u r hyd ro c o m p a ny h a s incentives for retrofit projects. Contact an engineer to review your requirements and save more energy in your building(s). 1
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the evolving technologies like wireless W i - Fi and Zigbee transmission, it is now possible to meter water and gas to each suite. Discuss this with your engineer or service provider.
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Vlad Platek, P.Eng. is President of PLATEK SERVICES INC. Consulting Engineers, providing engineering services and cost effective energy monitoring, metering and building automation solutions.
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Maintenance
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dEsign
44 CONDOBUSINESS BUSINESS | www.condobusiness.ca
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dEsign
Keeping up appearances By kate kaSekaS
The first introduction residents or buyers have to the building are the common elements and they should be
welcoming, functional and elegant. Common areas are typically refreshed every ten to 15 years (while in some unfortunate cases we’ve been contacted just weeks after registration). Keeping up appearances in these spaces is key to protecting the value of the units and maintaining owner satisfaction. W hile older buildings may have many advantages – larger suite square footage, parking, etc – existing residents and potential buyers may have a hard time looking past a tired lobby and corridors. With all the glossy n ew b u i l d s r a i s i n g t h e b a r a ro u n d the cit y, older condos need to stay competitive. It is important to start the renovation process with a positive attitude and r e a l i s t i c e x p e c t a t i o n s . Yo u c a n anticipate that, upon completion, your spaces will be current and polished. A menit y area refur bishment is one of the few ways residents really see their maintenance fee dollars at work. Residents will be thrilled - not only with the new look but with the increase in the value of their home. Being a cer tified designer in a condominium refurbishment firm gives me a unique perspective, both as a designer and construction project manager. Wearing both hats for over ten years, often at the same time, has
taught me many things along the way. I most often get asked, “We need to renovate. Where do we start and what needs to be done?!” follow this 12 step guide for a successful process. 1. Create the ultimate wish-list C re ate a li s t of n e e d s a n d w a nt s . Walk the building to determine which areas could use a little refresh a n d w h i c h a re a s n e e d a c o m p l ete overhaul. Generally, a refurbishment will include the inst allation of new c ar p et , wall c over ing and p ainting . Additional considerations are adding millwork, baseboards, door trim for the suite entrances, suite door hardware, up grading light fix tures, new tiles, replacing ceiling tiles and feature walls, artwork and accessories. Depending on the scope of work you may also need to hire specialists, such as securit y, architects or engineers.
tiP: While it is important to listen to everyone’s ideas, the condominium board should make the ultimate decision on the scope of work - this is why they were elected!
2. review your reserve fund study Review the report with your property manager to determine the amount of funds available for the items on your wish-list.
tiP: Fund allocations are usually made by engineers, they are typically conservative and rightly so. An experienced property manager can give you advice on financial options which could include a special assessment. Listen to what s/he has to say!
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design
3. Establish a design committee A design committee should be created to wo r k w ith the d esig n fir m (se e step four) to help create the concept of your refur bishment proje c t. T he ideal committee consists of a team of unit owners that work well together and hold the overall well being of the building as their first priority.
Tip: This group works best when it consists of three to five people with at least one representative from the board of directors.
4. Interview and hire an interior design firm Contact a few design firms: you will need to provide them with your wish-list and overall goals for them to give you a project proposal. Stick to firms that specialize in condominium refurbishment and select the one that best reflects the vision of your
design committee and your residents.
Tip: Don’t get hung up or disappointed when a dream designer is either out of your budget or doesn’t specialize in condominiums!
5. Design concepts Go back to step two and review, in detail, the available funding for the project with the newly hired consultant. The designer must understand the financial parameters before you begin. A designer will typically incorporate the geographical location, demographics and both the exterior and interior architectural elements. Products should be selected based on their suitability for your building’s traffic and be as maintenance-friendly as possible. The designer will collaborate with the committee on designs to produce two to three packages; you can expect this process to last two to three months.
Tip: Remember, you are working with a budget - you should try to stay within it. If you fall in love with a design concept that you cannot afford, you may need to revisit the overall concept or come up with creative ways to source funds.
6. Take it to a vote Display the final options in a prominent area (like your main lobby) for resident review, after which they can be invited to vote and/or comment. The display boards should be available for viewing for about a week’s time.
Tip: Remember to leave these boards out over a weekend, when most residents are home.
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dEsign
7. review of tender documents and bidding Your design professional will prepare the detailed tender documents. Management and the board of directors will then review the documents and revise or approve them prior to being sent out to bidders. You will need to invite at least three contractors to bid on this work.
The SPG enGineerinG GrouP LTd.
tiP: Expect to give the bidders at least two weeks for the bidding process. The more intricate the project, the more time it will take to price it!
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8. Selecting your contractors Always obtain quotations from reputable companies that have experience in condominium common a re a s . T h e y m u s t h a ve W S I B a n d Liability Insurance and also have the ability to be Bonded.
tiP: Don’t hesitate to request and check at least three references from projects of a similar nature. People love talking about their great experiences! (And even more so about their bad ones!)
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management design
9. Award your project and sign that contract Review the bids in detail, make your selection and notif y the successful contractor. T he contractor will draw up a formal contract that needs to b e si g n e d by t h e C o n d o miniu m Corporation. You may wish to use a CCDC document, a generally accepted contract form for construction projects. The contract should include provisions for Performance Bond and Material and Labour Bond for your protection.
Tip: Be careful you do not focus only on cost control. Sometimes condominium boards, in an effort to control costs, pick the lowest bid. This often translates into poor quality of work and service. Negotiating this balance between price and quality is tough. Turn to your property manager for advice; they can probably get you a good sense of each contractor’s reputation.
“Inform the residents of working hours and any other project-specific details.”
10. Set the start date and anticipated completion date. Notify residents. Inform the residents of working hours and any other project-specific details. Communicate with your contractor and ask them what, if any, delays can be foreseen in your project.
Tip: Professional contractors have experience in dealing with roadblocks that could add significant delays to your project; work with yours on hammering out a realistic schedule and stick to it.
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design
11. Begin and complete construction Throughout the project, your property manager will be in contact with the site construction manager to monitor the progress. T he interior design professional should also be requested to visit the site at least three times d u r i n g t h e p ro c e s s to e n su re t h a t the installation is meeting the design concept. M ake sure you stress the imp or t ance of open communic ation with your contractor: they hold the success of your project in their hands.
Tip: The board of directors or design committee may be required to approve on-site conditions; it is imperative that a quorum is available for a quick call, on-site meeting or even an email!
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12. Deficiency walk-through After the dust has settled and your cleaning crew has conducted a complete sweep and wipe down of all the surfaces, walk through your project space with your designer and identify any d efic ienc ies. T here are al ways going to be a few minor items that will need to be corrected by the contractor. Tip: Enjoy your beautiful new space!
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Remember: there is value to good design and good workmanship. Condominium living is not just a space; it is a lifestyle and ultimately a home. 1
Kate Kasekas is an interior designer (ARIDO, IDC, NCIDQ Certified) and a project manager at Tri- Can Contract Incorporated. You may contact her at kate@tricancontract.com or (905) 475 6703 Ext. 260.
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Peace of mind included. At CLM, we know contemporary condominium living is not only about comfort, but in having confidence in the day to day management of your investment. With over twenty years of ‘hands-on’ experience, CLM’s team of professionally trained managers provide the highest standard of service. A member of CCI, ACMO and BILD, we are also ACMO 2000 certified. If it’s time to reconsider your choice of professionals, think CLM—we’ll make you feel more than just comfortable, we’ll make you feel confident. For competitive management rates, and to find out how CLM can keep condominium living worry-free, please contact; Stacey Kurck Director, Business Development Office: 1.877.81.CONDO (26636) x467 Cell: 416.894.2377 stacey.kurck@condominiumliving.ca
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management Regulations
New standard formalizes steps to reduce construction/demolition waste
By Barbara Carss
Sustainability is alternately framed as a challenge and a
mission in two ambitious initiatives with a 2030 target date. It also poses
something of a paradox since the programs are philosophically compatible yet could practically conflict.
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Regulations
Design and building professionals are taking up the 2030 Challenge, which Architecture Canada has endorsed, to dramatically reduce the global warming potential of new and renovated buildings. T his has green building specialists eyeing aging, underperforming industrial/ c ommerc ial / institutional and multi residential stock. “The future of sustainable design is going to be about reimagining existing buildings,” Vivian Manasc, President of Edmonton-based Manasc Isaac Architects Ltd., told seminar attendees at the Green Real Estate conference in Toronto this spring. “We will actually be seeing a large makeover of the existing environment.” Meanwhile, a coalition of business, environmental, public sector and community interests that comprise the Construction Resource Initiatives Council is spearheading Mission 2030 to halt the disposal of construction, renovation and demolition waste into land fill. Sustainability specialists focused on the final stages of the building life cycle hope the term “deconstruction” will come to replace “demolition.” “We’re trying to shift our language. More importantly, it’s not just the shift in language, it’s the shift in thinking,” reflects Vince Catalli, Vice Chair of the CSA Group’s Technical Committee on Sustainable C onstruction P ractices, and Business Development Manager with the environmental consulting firm, Golder Associates. Two C S A s t a n d a rds now address this task, with the aim of reducing waste from a building’s conception to demise. The newly released CSA Z78312, Deconstruction of buildings and their related parts, reinforces and formalizes procedures to recover materials and
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Regulations Maintenance
“It might even provide insight to give savvy adopters a business edge.”
minimize disc ards. It ’s a follow - up companion to CSA Z782-06, Guideline for design for disassembly and adaptability in buil ding s, w hic h urg es ow ners, developers, architects and engineers to consider how a building might be modified or dismantled in the future and to make design, component and material choices to ease those opportunities. “You can think of Z782 as a guidance document for people sitting at a drafting table contemplating design of a new building, while Z78 3 is the standard that’s carried around the worksite while a building is being taken down,” explains Dwayne Torrey, the Project Manager with CSA Group who coordinated the development of the new standard. Consistent parameters Initially, at least, CSA Z 78 3 is most likely to be used in projects that weren’t designed in accordance with CSA Z782 principles. It sets out an organized process for identifying, saving and sorting nonhazardous recoverable materials and outlines a consistent best- practices approach that owners can specify when they call for tenders.
F o r owners, specifying the standard should eliminate a variable and allow them to more accurately weigh competing bids. For contractors, it should ensure that they are competing evenly, based on the pledge of comparable services. Beyond that, it might even provide insight to give savvy adopters a business edge. “When they bid these contracts, the difference between high and low bids could be in how resourceful they can be reclaiming, reusing and recycling the materials. That’s where the competitiveness lies,” Catalli says.
The standard also provides credible guidance for on -site super visors and workers. “For project managers, CSA Z783 essentially could be a key document in a deconstruction project, providing not only necessary requirements, but also a checklist of all the things they are going to have to be dealing with,” Torrey suggests. Proponents are promoting both stand ards as ef fec tive mechanisms that could be referenced in building c o d e s , o t h e r fe d e r a l o r p r o v i n c i a l re g ul ati o ns , muni c i p al by - l aw s an d voluntary certification programs. Some fairly obvious applications for CSA Z783 might include as a requirement for obtaining municipal demolition permits, achieving provincial waste diversion and recycling targets or securing credits in LEED programs. “The building industr y is ready for this. The CSA standard is a very, very important step in helping the regulatory bodies realize that there are tools they can use,” says Renée Gratton, President of the Construction Resource Initiatives (CRI) Council and a member of the CSA Technical 6391MasterClean2.5x2.5Ad_MasterClean2.5x2.5Ad 12-1
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Regulations Committee on Sustainable Construction Practices. “We needed to have a standard or something official to open the dialogue on the importance and urgency to improve on building industry practices.” The CRI Council’s model has more elements than the conventionally known 3Rs in an effort to further diminish the final tier of remnants that ends up in landfill or hazardous waste facilities. It adds “Rethink” and “Recover” and includes an energy-fromwaste option – something that CSA Z783 also covers, with information on the potential thermal value of carpet, for example. “That’s kind of the last alternative,” Catalli stresses. “There is a hierarchy to it. If you can recover for reuse, that is the best option. Recycling is the next in line. Energyfrom-waste is third and, as a last resort, there is a landfill.” Front-end considerations Typical ICI refurbishment and renovation projects offer more opportunities at the preferred end of the scale. Reworking interior features and configurations, or even gutting the entire space, is
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almost always simpler than replacing or dismantling the structural framework and systems. In future, if CSA Z782 design principles become more common, Catalli predicts it should become easier still. “Interiors are a layer of the building that can accommodate disassembly quite nicely,” he observes. “There are cases where the materials we disassemble can be reused on site.” However, despite increased adoption of the integrated design philosophy and general acknowledgement of its record for producing efficient operating systems and finding capital savings, demolition/ deconstruction is still largely separated out from design functions. Catalli contends that there should be plenty of time to develop creative reuse and recycling strategies during the design phase of most renovation and redevelopment projects. “Usually demolition comes up in conversation about a month before they are ready to tender so they’ve wasted about a year when they could have been thinking about it. There is a lot of time when the design activity is taking place when there
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could also be a team in place to do a better job on the deconstruction side,” he says. It’s perhaps an even greater leap to envision a building’s deconstruction in sync with its design, which may be one of the obstacles that CSA Z782 has faced. It has not been prominent in the six years since its release, but advocates are optimistic it can garner more attention as a package with CSA Z783. “Z782 should address the ‘reduce’ component of the 3Rs. If you look at the way buildings are built now, we’re not there yet, but you can’t just regulate it all at the tail end. It has to start at the front end in the design phase,” Gratton asserts. “The first Rs have to be the focus now.” 1
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management technology
Organizational barriers to the adoption of new technology By Alexander Amigud
The property management industry has paddled into the whirlpool of
technological innovations. They provide functional enhancements or aesthetic pleasure, depending on the technology employed. The changes that stemmed from advancement of technology are hard to ignore because they permeate almost every area of building operations.
58 CONDOBUSINESS | www.condobusiness.ca
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technology
Web 2.0 and social media are gradually displacing paper, rental magazines and colourful magazine boxes. New additions to the property managers' arsenal now include building automation systems, network security cameras, automated parking attendants and of course accounting and maintenance software that tracks work orders and prints out notices of rent increase. Some of these gadgets and information management tools may come with a hefty price tag and yield marginal efficiency, but regardless of long term return on investment and shareholder responsibility, implementation of innovation is never an easy task. The selection of technology can greatly influence the outcome of a technology project and company-wide acceptance of innovation but the secret to successful implementation of new technology lies in more than just a well informed purchase decision and an unlimited budget. It hinges on well-orchestrated communication strategy and methodological review of processes and procedures on an organizational level. Serious challenges arise when executives do not follow standard planning models, merely responding ad hoc to random priorities. This non-systematic decision-making is a significant roadblock to innovation. Similarly, training managers ignore learning theories to underpin the design of learning content in the organizational context and develop learning content paying little attention to the learning outcomes. The new technology training should always include underlying processes that the technology supports, simplifies or is designed to promote. A training program should be designed with the learners' needs in mind and focus not only on a practical component as practice helps to reduce anxiety, but most importantly aimed at empowering staff to lead the change. Implementation of innovation is usually promoted under the banner of efficiency, productivity and competition. But, in many new ventures there would be initial need for increased technical and information support that is often strategically neglected to reduce the costs, creating potential for a long term economic impact that may undermine the long awaited ROI. Implementation of a new technology may prompt redistribution of resources away from traditional cost centers into new ones. This in turn may create resistance from those whose job functions depend on the old technology. Implementation of new technology challenges the well established status quo, thus threatening a longformed organizational hierarchy. These challenges are difficult to overcome and therefore create a significant barrier to innovation as affected stakeholders may be taking every opportunity to postpone implementation. Technologies that yield minimal organizational impact are often the ones most sought after; however they may not always produce the optimal results. Personality factors may also account for some of the variance of technology adoption rates. Some individuals may be more prone to act as early adopters, while others prefer traditional ways and resist
the change and then there are those who buy technology for the sake of technology. Infatuation with technology is another road block to innovation. Many long hours may be spent examining a potential of what a new technology can do, as opposed to what it was designed to do, once again delaying implementation. The end user, being the most important stakeholder in the technology implementation is usually excluded from the decisionmaking process. It is the elite group of individuals, usually comprised of management and those who hold the keys to the budget, who attend product demonstrations and pilot test the innovation. But only after the technology has been acquired or licensed is a full scale pilot project launched offering end-users to experience the technology for the very first time. This results in the frontline staff being excluded from the decision-making process, which in turn creates potential for resistance or low adoption rates. It is important for managers to obtain the support of the key stakeholders early in the planning stages of the implementation process and avoid being shocked into reality when a promising new technology fails to meet the business needs. 1
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SMART IDEAS
5 tips to prepare trees for winter from the Urban Forest Stewardship Network 1. Water until the ground freezes. Most urban trees suffer from drought. If soil is dry, water the root zone on a slow drip for approximately 30 minutes, once or twice a week.
Wednesday, September 26 was National Tree Day and the fifty groups that make up the Urban Forest Stewardship Network (UFSN) called on communities across Ontario to take five easy steps to prepare their trees for winter.
2. Let fallen leaves lie.
Leaves are Mother Nature's natural fertilizer. As fallen leaves decompose they are transformed back into the nutrients and organic matter the tree needs. However, diseased leaves should be removed from your yard to help avoid repeat problems the following year.
4. Avoid salting the earth. Excessive use
of salt on driveways, walkways, and other areas can cause serious damage to trees - even those located as far as several meters away. Instead of using salt, remove snow promptly from high traffic areas, chip ice away where necessary, and apply small amounts of sand for traction.
3.
Replace mulch. Maintaining a circle of mulch (woodchips, leaves or other organic matter) helps reduce fluctuations in temperature and keeps the soil around the roots from drying out. Make sure trees have a wide circle of mulch (approximately three inches deep) spread around their base. Make it a doughnut shape so that mulch does not touch the bark on the trunk as this holds moisture and can cause decay.
5.
Prune during dormancy. Pruning can be done on most tree species during winter months. Contact a certified arborist before attempting any major pruning, as large limbs can be dangerous to remove and incorrect pruning can damage trees. Proper pruning can prevent future problems and extend the life of urban trees.
By following these five easy steps, residents across Ontario are contributing to a healthier, stronger urban forest. Everyone is encouraged to share their stories and join the UFSN by visiting www.ufsn.ca. 60 CONDOBUSINESS | www.condobusiness.ca
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