Construction in Vancouver - Vancouver Regional Construction

Transcription

Construction in Vancouver - Vancouver Regional Construction
CONSTRUCTION
REAL ESTATE
North Growth Management Ltd.
CEO Rudy North on your best
bets for investing in 2011
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Strongly oppo
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Survey finds businesses
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Strongly supp
to minimum wage raise in B.C.
3210%
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IN VANCOUVER
YOUR WEEKLY SOURCE OF REGIONAL BUSINESS INTELLIGENCE SINCE 1989
www.biv.com
Scott Construction
SCT-09-011
DoCkET:
ITEM:
SIZE:
Business in Van
Earlug – 2.125
www.vrca.bc.ca
od Goy is the new dean of
provide leadership and to help BCIT
“Rod Goy has more than proved
province’s largest electrical trades
tion and Environment at
the British Columbia Institute of
Technology. Goy has served for
many years as associate dean and
has spent the last 18 months as acting dean.
“This is a great opportunity to
RETAIL
the economic and environmental
prosperity of B.C.,” said Goy.
Keith Sashaw, president of the
Vancouver Regional Construction Association (VRCA), gave
his enthusiastic support to the
appointment.
industry,” said Sashaw.” The VRCA
looks forward to continuing its
relationship with him.”
Over the years, Goy has also
been responsible for the Industrial
Construction Group at BCIT and
was previously responsible for the
including security systems technician, iron working, metal fabrication, welding, sheet metal, mining
and piping trades at BCIT.
Goy was the training director
of the Electrical Joint Training
Committee for 12 years before
Retailers down on daily digital deals
For temporary, permanent and
contract staffing call today
joining BCIT. He currently holds
604-694-2500 miles.ca
memberships with the Wood Sector Council and the BC Aboriginal
Mine Training Association.
He was one of the inaugural
board members for the Industry
Training Authority, which manages the province’s industry training system. u
THIS WEEK
Port Mann highway project half completed
Catherine Warren
By Brian Martin
Helping major media tap the 21st century power
of audience participation
Profile, page 43
A
giant is coming alive as one
of the biggest construction
projects in the history of British Columbia passes the halfway
mark.
In September, Premier Christy
Clark was on hand at a ceremony
to mark 50% completion of the
Highway 1/Port Mann Bridge project. It is a $3.3 billion project and,
contrary to common public pero matter how you slice it,
ception, it is not a public-private
the return to the provinpartnership. It is being financed
cial sales tax from the harmoby the provincial government and
nized sales tax will be painful for
built by a partnership that includes
British Columbia’s construction
Peter Kiewit Infrastructure Comindustry.
pany and Flat Iron Constructors
That is the word from ManCanada Ltd.
ley McLachlan, president of the
At the ceremony, the premier
British Columbia Construction
acknowledged workers for their
Association (BCCA).
contr ibutions to the project,
“The full impact of [the
which,
complete,
says, retailer through daily deal sites because she thinks such marketing
Lynda Barr, director,
Dianes
Lingerie:
doesn’t
offerwhen
mass discounts
to she
the lingerie
See Complex, C2
willservice-oriented
improve safetybrand
and reliability,
ploys would diminish the store’s specialized,
Changing
tax systems
painful for
construction
30%
20%
604-688-2398
VRCA news supplement
Issue 1107
� January
11–17, 2011
$3.00
�credentials
$79.95 in
annually
� [email protected]
the School
of Construccontinue to be an integral part
of his
the construction
training and steel trades programs,
BCCA has
questions
for Victoria
�
CLIENT:
604.988.1407
Rod Goy to head BCIT construction
R
k
Minimum wage,
maximum debate
Mohamed Ahmed targets city
and developer in $10m lawsuit 5
October 11–17, 2011
Y
BIV/IPSOS
Don't know POLL
Development
dust-up
North of 49th
M
scottconstructiongroup.com
INVESTMENT
C
WITH THIS ISSUE
(SUB SCRIBERS ONLY )
Selling the city
Inaugural issue of BIV’s
Vancouver Relocation Guide
Taseko trouble
Class action lawsuit pondered
News, page 6
Better business builders
Your guide to closing more deals; chocolate wars
and leadership
Business tool kit, page 36
SAM LEUNG
Ministry of Highways
N
Pot applause; more on Moe money;
everyone into the pension pool
Letters, Holman, Milke
Op/ed, pages 40-41
Biggest retirement
homes in B.C
list
Biggest interior
design firms in
Metro Vancouver
14
C10
A critical mass of consumers taking up
Inside
the
offer is usually
forthe
the50%
offer
to
The massive Port Mann
highway
projectrequired
has passed
mark
Subscriber details
construction in vancouver
haron Townsend points to her own use be completed.
Aboriginal
trades
training
gets
Companies vie for awards —C3
travel time
the global
export
opportunities.
transportation.
Like all businesses
that
sign up
to deliver
of “daily deal”
websitessave
to question
just and improve
important boost
—C10
movement
of
goods
for
trade
to
Through
this
type
of
investKeith Sashaw, president of the
Growing trend in construction
how beneficial their proliferation is to Van- offers on such sites, Townsend’s favourite
Safety tied to contracts —C4
Building permits
increase
—
C11
the
Asia
Pacific
region.
ment,
the
government
says,
the
Vancouver
Regional Construcrestaurant hopes its discount offer will draw
couver retailers.
The
Port
Mann/Highway
1
province
is
accelerating
job
cretion
Association,
also praised the
Creativity in office projects
e South Granville
ConstructiveTh
Comment
—C13 Business Improve- a flood of new clientele.
Improvement Project is said to ation and growing revenues.
project.
Innovative designs downtown —C5
“At 50% off, they’re not making any
ment Association executive director bought
Legal Specs
—C13
be creating 8,000 jobs and is a
“From the iconic design of the
“A project of this size touches
a 50%-off meal coupon to her favourite Van- money,” said Townsend, “so they’re countBiggest architecture firms in
key
component
of
the
provincial
new
bridge,
to
the
hours
of
traffic
every
sector of the construction
Metro Vancouver list
—C6 Around the
Industry
—C14
likeaims
blazes
somebody to
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going to
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restaurant
a few weeks
back from
one ing
Gateway
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to that
management
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comeofback
a second
and cover
the city’s nearly
dozen daily
deal sites.
Construction fraternity backs
Provincialof
View
—C15
improve
the movement
people,
waytime
remains
open off
forthat
use during jobs, not just for the main contracHonour House
—C8
loss.”
Each site follows a similargoods
model:
it
sends
and
transit
throughout
the
construction,
to
keeping
people Business
tors butinalso
for all
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sub-conVancouver
Issue
—C15
New members list
Butsays
because
regularwhat’s
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its subscriber base a daily deal,
usu- Victoria
Lowerwhich
Mainland.
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Hospital project underway—C8
P3 partnerships
—C16 on goods
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at her
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ally includes
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with
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—C9 Next issue: January 2012
RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION
SeeVANCOUVER,
Construction,
boost domestic, cross-border and said Blair Lekstrom,
minister
of
ticular store.
see Groupon,
2
DEPARTMENT:
102 EAST 4TH AVENUE,
B.C. V5T 1G2.C2
>Host of new websites
offering subscribers
huge discounts at stores
and other businesses
>But merchants complain
that the daily deal craze has
few long-term benefits for
Vancouver’s retail sector
By Curt Cherewayko
S
C2 VRCA News Supplement
Don’t drive
distracted
By Don Schouten, WorkSafeBC Manager of
Industry and Labour Services – Construction
D
on’t drink and drive. Always
buckle up. Those are two important phrases when it comes to
driving safety and I’d like to add a third:
Don’t drive distracted.
handling something other than the
wheel, and thinking about something
other than driving. Translate that to
a construction context and that could
mean looking at a recent change of
order document or directions to the
next site, listening to instructions on
the radio or phone, re-arranging tools
in the passenger seat, or thinking about
what you have to do at the next site.
Driving is an important, but often
overlooked activity when it comes to
Remember to remind your workers that
safety planning in the construction
when they’re behind the wheel, driving
industry. Workers drive from site to site
is their only job. You can support this
and, if it’s a large site, they’re often
by not calling or texting them when
driving within that one site. Looking
you know they’re on
at a mobile device,
the road, and managing
fiddling with the radio,
road risks as you would
or drinking a cup of
In 2010, the
any other occupational
coffee is often viewed
as just a natural part
province of B.C. health and safety issue
on your site.
of driving. It may not
made it illegal
seem like a big deal,
Develop a road
to drive with
but those actions might
safety policy for your
just put their lives at
any electronic
company and distribute
risk.
handheld
it to your workers and
supervisors so everyone
devices,
but
Motor-vehicle
is on the same page.
incidents, or MVIs, are
distractions
You can find a sample
the leading cause of
go
beyond
just
policy available on
traumatic worker deaths
WorkSafeBC’s web site
cell
phones
and
in B.C. On average,
for you to adapt if you
30 workers are killed
music players.
don’t want to start from
every year as a result of
scratch. Head to the
these incidents. Studies
Road Safety page under
have shown that 25
the Safety at Work tab on WorkSafeBC.
percent of all vehicle crashes in B.C.
com to check out videos, tip sheets,
are caused by distracted drivers, which
and other helpful resources.
may imply that 25 percent of all workrelated MVIs can be attributed to the
same reason.
In 2010, the province of B.C. made
it illegal to drive with any electronic
handheld devices, but distractions go
beyond just cell phones and music
players. When you’re behind the wheel,
anything that causes you take your
eyes — and mind — off the road is a
distraction that can potentially lead to
disaster.
Employers, supervisors, and drivers
can take steps to reduce the risk caused
by distracted driving. If workers at
your site are required to drive, part of
the worksite’s safety program should
address the risks workers face when
behind the wheel.
There are a couple of different types
of driver distractions: looking at
something other than the road, listening
to something not related to driving,
Distracted driving is a serious issue
and everyone needs to be reminded
that a car, truck, or any moving vehicle
is a workplace, and health and safety
should be considered wherever you or
your employees are working.
In a fast-paced world that emphasizes
multi-tasking and efficiency, it can
be hard to resist the urge to do other
things while driving. But when drivers
focus on the road ahead — and nothing
else — it goes a long way to keeping
you, your workers, and the public safe.
Please let me know what you think of
this topic or any construction safety
issue. Call me at 604 214-6989
from the Lower Mainland or toll-free
elsewhere at 1 888 621-7233. Or
email [email protected].
I’d like to hear from you.
Business in Vancouver October 11–17, 2011
Complex calculations
Construction may slow because of uncertainty surrounding the transition back to the
provincial sales tax from the harmonized sales tax
From BCCA, C1
return to] PST on any given contract is nearly
impossible to quantify,” said McLachlan. “It will
certainly hurt contractors, because they will be
unable to pass on the full cost of reverting to
PST, at least in the short term.”
McLachlan points out that changing back
to the old PST system has raised a plethora of
questions for contractors.
“Considerable attention was paid to the
residential housing sector in the original transition to the harmonized sales tax to ensure its
implementation did not seriously impact the
overall tax cost of a new residence – at least
those at or below the average price of a new
home,” he said.
“There were, however, many incidents of
double taxation [PST/HST] on commercial
projects and non eligible projects around July
1, 2010, due to the long lead time between contracting and delivery of a product or service.”
McLachlan will be asking Victoria whether
current long-term agreements will be grandfathered under the HST. In other words, whether
or not credits available to the builder on costs
and to the purchaser where applicable will be
honoured because contracts were entered into
with the expectation of no sales tax.
“Or will contractors be expected to and
permitted to adjust prices to reflect the new
embedded costs of PST for materials purchased
after the transaction?” McLachlan wondered.
The BCCA president points out that the
harmonized sales tax was expected to generate
some $880 million in annual cost savings to the
construction industry.
“Conversely, will the government provide
any incentives or job protection plans or otherwise ease the transition back to the PST for the
construction industry?” asked McLachlan.
The PST for contractors, said McLachlan,
involves very complex issues and requires comprehensive books and records to satisfy the tax
authorities.
“Contractors will need to spend a lot more
time and resources on administration of their
businesses when we revert to the GST and PST,”
McLachlan warned.
The additional costs that result will, of
course, eventually be reflected in the cost of
their projects.
The Urban Development Institute (UDI)
in Vancouver is also very concerned about the
issue.
“The transition away from the HST will create much uncertainty within the development
industry and among new home buyers,” said
Maureen Enser, UDI executive director. “Many
questions will need to be answered, and we are
anticipating the government has considered the
possibility of this outcome and its implications
on the housing market. Further, the industry
is seeking assurances that no additional taxes
will be added to housing in B.C.” u
Construction “giant” hits
important milestone
From Port Mann, C1
to capture the enormous size of the Port
Mann Project. It will be 2,020 metres long
and provide five lanes in each direction.
When complete, the bridge will hang from
288 cables. The towers are 160 metres high,
and the bridge allows for 42 metres of navigational clearance. To build the new Port
Mann Bridge requires 1,158 pre-cast segments in the approach spans and 25,000
tonnes of asphalt. Forty-five kilometres of
cable are being used along with 157,000
square metres of concrete.
The new Port Mann Bridge will open
with eight lanes in the winter of 2012/13.
Two additional lanes will be added when
the existing bridge is demolished. When
the full 10 lanes are complete the 850-metre
main span cable-stayed structure will be
the widest in North America and one of the
longest.
The bridge will also provide for transit
bus traffic across the Port Mann for the first
time in 20 years.
First announced in 2006, the improvement project includes not only the construction of the new 10-lane Port Mann
Bridge, but also includes widening Highway 1, which is the Trans Canada Highway,
upgrading interchanges and improving
access and safety on the route. The project
spans about 37 kilometres from the McGill
Street Interchange in Vancouver to 216
Street in Langley. More than 30 interchanges
and overpasses are being replaced, upgraded
or added as part of the project.
In keeping with the provincial transit
plan and commitment to alternative transportation, the project includes congestionreduction measures such as high-occupancy
vehicle lanes, transit and commercial vehicle
priority measures and improvements to the
cycling network.
The new highway and bridge will also
accommodate rapid buses that will provide a
25-minute service between a new park-andride facility in Langley and the Lougheed
SkyTrain station in Burnaby. u
VRCA News Supplement C3
Business in Vancouver October 11–17, 2011
Local companies vie for honours
Canada’s largest construction awards event
By Brian Martin
M
ore than 600 of the Lower Mainland’s leading construction industry leaders will gather October 19
at the Vancouver Convention Centre.
The occasion is the 23rd annual Awards of
Excellence dinner and awards presentations.
Sponsored by the Vancouver Regional Construction Association (VRCA), it is the largest
construction awards event in Canada.
“The annual Awards of Excellence presentations are one of the highlights of the year for the
local construction industry,” says Keith Sashaw,
president of the VRCA. “It gives members of
the industry an opportunity to recognize their
peers who have done outstanding work.”
Some 200 entries representing close to $2
billion were included in the competition this
year. Construction companies are rewarded
for developing particularly unique methods
of overcoming specific problems, as well as
for their quality of workmanship and fiscal
performance. A series of silver winners has
already been announced in a series of categories. At the awards ceremony, one silver winner
in each category will be announced as the gold
winner.
During the evening, the industry will single
out several individuals for their contributions
over the years, and WorkSafeBC will present
awards to companies who have developed new
safety equipment or techniques.
Construction firms who are silver winners
this year are:
General contractors on projects worth
more than $40 million:
PCL Constructors Westcoast for the $75
million Sparkling Hill Resort near Vernon; a
partnership between Bouygues Canada and
Bird Construction for the new $237 million
Jim Pattison Outpatient and Surgery Centre
in Surrey; TASK Construction Management
for the $52 million Poirier Sport and Leisure
Complex in Coquitlam.
General contractors on projects worth
between $15 million and $40 million:
Carillion Pacific Construction (formerly
known as Van Bots Construction) for a $32
million House of Learning at Thompson
Rivers University in Kamloops; Scott Construction for the $27 million Robert H.N. Ho
Research Centre at Vancouver General Hospital; Stuart Olson Dominion Construction
for the $23.3 million Penticton Aquatic and
Community Centre.
Jim Pattison Outpatient and Surgery Centre in Surrey is among many projects to be highlighted at the VRCA Awards of Excellence evening
General contractors on projects worth up
to $15 million:
Vancouver Pile Driving for a $14 million contract at the Nanaimo Cruise Terminal; Manley
Design & Construction Management for the
$2.6 million Mahoney Pub attached to the
Vancouver Convention Centre; Ledcor Construction for the $6.9 million Klahoose New
Relationship Building on Cortes Island.
Chairman’s Trade Awards:
LMS Reinforcing Steel Group for two large
projects in the Maple Ridge Area that totalled
$4.4 million. One was for reinforcing steel at
the Golden Ears Bridge while contracted to
Bilfinger/Berger from Germany and the second was for the rebar on the Coast Meridian
overpass while contracted to SNC-Lavalin;
Flynn Canada for a $2.7 million project it
handled while contracted to Bird Construction
on the Jim Pattison Outpatient Care and Surgery Centre in Surrey; Spectrum Painting for
a $2.8 million contract with Bosa Construction
on the redevelopment of the Vancouver YMCA
along with an attached condominium tower.
President’s Trade Awards:
CN Architectural Millwork and Construction
for a $1.2 million project at the Sparkling Hill
Resort while contracted to PCL Constructors
Westcoast; Concept Aluminum Products for
a $1.4 million project while contracted to Scott
Construction at the Robert H.N. Ho Research
Centre; Whitewater Concrete, a $2.6 million
Fresh. Local.
Business.
project while contracted to TASK Construction Management on the Poirier Sport and
Leisure Complex in Coquitlam.
Mechanical contractors on projects worth
more than $3 million:
Daryl-Evans Mechanical for a $20.8 million
contract at the Jim Pattison Outpatient Care
and Surgery Centre while contracted to Bird
Construction; Keith Plumbing & Heating for a
$48 million contract at Victoria’s Royal Jubilee
Hospital, a P3 project with the Lark Group;
Division 15 Mechanical for an $11.5 million
job at the UBC Biological Sciences Building
while contracted to Scott Construction.
Mechanical contractors on projects worth
up to $3 million:
Jeda Mechanical for a $1.9 million contract
at Samuel Brighouse Elementary School in
Richmond. General contractor was EllisDon;
APCO Plumbing and Heating for a $2.8 million project while contracted to Double V
Construction at Garibaldi Secondary School
in Maple Ridge; Paragon Mechanical for a
$1.1 million project at the Garage, an historic
building in Vancouver. General contractor was
the Haebler Group.
Electrical contractors on projects worth
more than $2 million:
Western Pacific Enterprises for a $5.3 million
project at the UBC Biological Sciences Building. Scott Construction Special Projects was
Electrical contractors on projects worth up
to $2 million:
Houle Electric is a double winner: first for
a $628,000 contract at a BC Hydro field
operations facility near Port Alberni where
the general contractor was Omicron Total
Building Solutions. Houle’s second win was
for its $120,000 contract on the Canada Place
sails replacement project. General contractor
was Ledcor Construction. Also winning silver
was Mustang Electric for a $110,000 job at
the Mahoney & Sons Public House. General
contractor was Manley Design & Construction
Management.
Manufacturers and suppliers:
Two firms have won silver awards as outstanding manufacturers or suppliers: Holdfast Metalworks of Nanaimo for a $40,000 contract
with Ledcor Construction on the Klahoose
New Relationship Centre on Cortes Island;
and M&K Ready Mix of Vernon. M&K supplied PCL Constructors Westcoast with concrete for its award-winning Sparkling Hill
Resort in the Okanagan. It was a $1.2 million
contract. u
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the general contractor; Bridge Electric for a
$2.4 million contract with Ledcor Construction on the Wesbrook Residential Tower at
UBC; Nightingale Electric for a $15 million
project at the Jim Pattison Outpatient Care
and Surgery Centre while contracted to Bird
Construction.
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C4 VRCA News Supplement
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Growing trend in the
construction industry
Companies’ safety records tied to winning contracts
By Brian Martin
G
etting a construction
contract is likely the
most impor tant
thing a construction company
can do. Short of that, however,
nothing is more important
than safety. It is now quite
likely that in the future, getting
that job will be directly connected to a company’s safety
record. In fact, in some cases
it already is.
At the heart of the issue is
the BC Construction Safety
Alliance (BCCSA). With headquarters in New Westminster,
it is a non-profit association
aimed at promoting safety
within the industry. Funded
from a small percentage of the
premiums companies must
pay to WorkSafeBC (formerly known as the Workers’
Compensation Board) the
association represents all the
150,000 people who work
for the approximately 35,000
construction companies in
the province. Those companies range from a one- or twoperson operation to the largest
companies in the industry.
The BCCSA was formed
just one year ago from the
amalgamation of two existing and separate groups – the
Construction Safety Network
and the Construction Safety
Association of BC. The two
had represented different
groups within the industry.
Now all groups and all sectors
are represented by BCCSA.
Shortly after the merger,
Mike McKenna came on board
as executive director. McKenna
has a long history in construction safety in the province and
has worked in both the private
sector and for WorkSafeBC.
“What I have done in the
months since I came here is
try to demystify COR,” said
McKenna.
COR stands for Certification of Recognition. Although
the BCCSA offers a number
of safety-related courses and
programs, COR is its key
program. Started in 2003, it
is comprised of several safety
training programs available
to construction managers
and construction employees.
There are two different structures. One is aimed at small
BC Construction Safety Alliance
Timelapse
Capture and Jobsite
Monitoring
Business in Vancouver October 11–17, 2011
Workers gather for a safety briefing during re-construction work at BC Place Stadium
companies – defined as firms
with less than 20 employees –
and another is aimed at large
companies.
It has been very successful.
Since it began, base rates for
the total construction industry
have fallen from an average of
$8.82 per $100 assessable payroll to $5.34.
“The large guys are
paying big bucks
to WorkSafeBC.
So, 15% off their
basic premium can
come to hundreds
of thousands of
dollars”
– Mike McKenna,
executive director,
WorkSafeBC
There are also very important direct savings for companies that are COR certified.
They can see their WorkSafeBC
premiums drop between 10%
and 15%. Between 2003 and
2009, COR saved the construction industry $6.5 million in
WorkSafeBC rebates.
The majority of the companies who are COR-certified
are large construction firms.
Getting the smaller companies – which are often momand-pop operations – is much
tougher.
“The large guys are paying
big bucks to WorkSafeBC,” said
McKenna. “So, 15% off their
basic premium can come to
hundreds of thousands of dollars. To the small guy, it’s not
that alluring.”
That will likely change,
however. A movement is afoot
to have most contractors in the
province certified before they
are allowed to bid jobs.
Two of Vancouver’s largest general contractors have
started pilot programs that
involve helping sub-contractors become COR certified.
Without that certification they
would not be allowed to bid.
“ T h a t i s t h e l e ve l o f
seriousness we need,” said
McKenna.”
At the same time, the BC
Construction Alliance is
lobbying the provincial government to make COR certification a requirement for provincially financed projects. The
roofing industry has gone even
further. The Roofing Contractors Association of BC now
requires COR certification
from all its members.
This is where McKenna’s
goal of “demystifying” COR
comes in.
“There’s a feeling out there
that it is hard to do and it isn’t,”
he said, adding there is also a
feeling among some contractors of, “It can’t happen to me.”
It can happen to anyone, he
emphasizes.
While accident prevention is
very important, return-to-work
programs are also very important. The duration of time
away from work has been
increasing in recent years and
is very expensive.
The association has a fulltime employee – Vernita Hsu
– dedicated to working with
companies to create programs
to get workers back to work –
perhaps modified work – as
soon as possible. Her services
are free, and she has an extensive background in injury
management specific to the
construction sector.
Some 700 construction
firms – most of them large
companies – have been COR
certified. The aim is to increase
that by 200 per year.
As part of the recruitment
drive, the association is experimenting with contracting
regional co-ordinators. These
are safety professionals with
years of hands-on experience
in the industry.
They are given lists of companies that are interested in
COR certification and they go
out to meet them in the field.
They also provide safety consultation services free of charge
to BCCSA members.
“They can meet them first
thing in the morning or in the
evening if that is more convenient,” said McKenna. So far,
there are three co-ordinators
– in the Lower Mainland, on
Vancouver Island and in the
Southern Interior.
If t h e p i l o t p ro g r a m
i s s u cce s s f u l , i t w i l l b e
expanded. u
VRCA News Supplement C5
Business in Vancouver October 11–17, 2011
Office projects highlight
local architects’ creativity
Larger floor plates and fewer balconies enable innovative designs
square feet. Law firm McCarthy Tetrault LLP
plans to relocate on the top four or five floors.
Thompson’s other office project, for Oxford
Properties Group, has a slim, condominiumsized floor plate of about 8,000 square feet. That
37-storey structure curves as it rises above its
Oxford-owned neighbours: the Marine Building
and the Guinness Tower.
“The Marine Building and the Guinness
Tower are both square. The Marine Building
has a wedding-cake, 1920s approach with heavy
materials,” Thompson said. “The new building, from its curved shape and slenderness and
the way it flips and rotates at the top is something that isn’t competing with that [square
blockishness].”
Iredale’s Pender Street project for Credit
Suisse AG and Swissreal Investments Inc. has
floor-plates sized in between those of the two
future MCMP towers.
Glen Korstrom
P
Residential | Mixed-Use | Commercial | Civic | Special-Needs | Seniors
ending development of four large office
towers breaks a multi-year lull where
no such projects were built in downtown Vancouver and provides opportunities for
architects who want to get creative and think
outside the box.
The city’s ongoing condominium tower
boom allows little chance for architects to convert inspired concepts into brick-and-mortar
reality.
Commercial buildings allow more creativity largely because their footprints are larger
and they do not have formulaic patterns where
every so-many feet there is an identically sized
balcony.
“With condominium towers, the bedrooms
have to be on the exterior. The living room has
to be on the exterior. There simply aren’t enough
other things to put inside a big floor plate if you
“We’ll have two elements: your
stack bedrooms and living rooms against the
exterior,” said Musson Cattell Mackey Partnertraditional office tower but also
ship (MCMP) partner Mark Thompson.
“There’s a maximum size you can make a
a large cantilevered bar that is
floor plate before the layout doesn’t work any
more.”
four storeys tall and projects
The sweet spot for a condo floor plate is
about 7,000 to 8,000 square feet, compared
through two city blocks over
with office towers where the floor-plate is often
25,000 to 30,000 square feet, he said.
two streets”
The result of this restriction on creativity is
– Gregory Henriquez,
that Vancouver is saddled with similar-looking
partner,
residential towers – most being pale green and
Henriquez Partners Architects
white, glass-clad and tall and slim.
Dialog architect Bruce Haden recently
lamented Vancouver’s ocean of “seafoamIts mashing of buildings comes because
coloured” condominium towers at an event to the City of Vancouver wanted to preserve the
launch his Central-branded mixed-use project legendary stock exchange building that is not
on Quebec Street near False Creek.
officially a heritage building yet is still historic
Haden’s antidote to this sameness is to by Vancouver standards.
build Central – a project with two 10-storey
Iredale architects have upgraded the old
towers that support an eight-storey horizontal stock exchange structure with new electrical and
tower which lies across the towers at a diagonal mechanical systems. Floor plates on the lower
angle.
floors of the 30-storey structure will be 15,500
See Ivy, C7
Thompson’s creative escape
will be to work with his partners on two office tower projects slated to be complete by
2015 at the latest.
One, which Bentall Kennedy LP is developing at 745
Thurlow Street, will extend
Vancouver’s traditional central
business district toward Robson
Street. The 400,000-square-foot
structure on Alberni Street will
be about 300 feet high or about
half the size of the Shangri-la
Hotel across the street.
Like the planned Iredale
Group of Architecturedesigned building at 800 West
Pender Street, MCMP’s project, on the former government
liquor store site on Alberni
Street, will look a bit like two
buildings mashing into each
other.
“One side of the building
is rectangular. It faces Georgia
We utilize our LEED Accredited Professionals on our
Street and is a bit more straightprojects, offering design features for environmental
laced, whereas the other side,
conservation and overall planning solutions that
facing Robson Street, is a bit
champion sustainable urban development.
more jazzy,” Thompson said.
The building’s jazziness
stems from an inverted triangle-shaped part the structure
that fans out on the upper
floors to create a maximum
floor plate of about 20,000
Iredale Group of Architecture designed a tower that incorporates the old Stock Exchange
Building and a new 30-storey structure
C6 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Biggest architecture firms
in Metro Vancouver
Ranked by 2010 net architectural fees
Rank '11 Company
1
2
3
4
5
6
7
Partners/principals
Specialties
Noel Best, Ian Carter, Darren Burns, Doug Hamming, Bruce Knapp,
Wilfred Lach, Len Rodrigues, Tom Schaeferle, Peter Wreglesworth,
Bruce Raber, Brent North, Hal Owens, Michael McColl, Ray
Pradinuk, Dan Zak
Mike Burton-Brown, Jeremy Woolf, David O'Sheehan, Kenn
Grotsky, Michelle Beggs, Daryl Hutchison, Sally Emmerson, Robert
Smith
Airports, community, commercial, cultural, education, health 1954
care, hospitality, research laboratories, retail and mixed used
51
35
More than
$20 million
Large-scale commercial, department stores, retail, mixed-use, 1979
residential, places of worship, institutional and complex
renovation
10
10
Under
$16 million
CEI Architecture Planning Interiors
Richard Bolus, John Scott, William Locking, Jim Aalders, Mark
Hentze, Rod Windjack, Tim McLennan, Nick Bevanda
Health care, recreation, institutional, office, retail, multifamily 1986
residential and education
27
28
More than
$12 million
Kasian
Don Kasian, Wojciech Brus, Bill Chomik, Scott Douglas, Jim Ebbels,
Milton Gardner, Crystal Graham, Vaughan Hoy, Carol Jones, Dean
Matsumoto, Michael McDonald, Alan Nakaska, Patsy Poulin, Paul
Szaszkiewicz, Oliver San Agustin, Peter Streith, Lois Wellwood
Peter Busby, Susan Gushe, David Dove, Martin Nielsen, Robert
Drew, Jim Huffman, Peter Thaler, Kathy Wardle, Rod Maas, Enrico
Dagostini, Adam Slawinski, George Miu, Ryan Bragg, Loren
Cavallin, Sean Brent, Blair McCarry
William Reid, Mark Whitehead, Jacques Beaudreault, Mark
Thompson
Airports, educational institutions, office buildings,
laboratories, hospitals, renovations to major facilities,
residential, mixed-use, retail projects, hospitality and
commercial projects
Architecture, planning and strategies, interiors and branded
environments for aviation, transit, corporate, commercial,
civic, health care, higher education, K-12 education, science
and technology projects
Retail, office, residential, hotel, health care, mixed-use,
planning and urban design
1985
38
45
More than $10
million
1984
21
16
More than $10
million
1965
16
14
More than
$8 million
1998
12
15
More than
$7 million
1973
12
12
More than
$7 million
Henriquez Partners Architects
Kevin Hanvey MAIBC, Greg Richardson MAIBC, Ivica Marinic MAIBC, Institutional, retail, commercial, residential, mixed-use,
George Sawatzky, Bill Tucker, Doug Vincent, Alex Riftin, Lori
renewals and planning
Billson, Cameron Kemp, Andy Kohler, Tim Loo, Sally Mills, Rod
Yeoh, Norman Laube, Jordan Levine MAIBC, Michael Byron,
Matthew Piry, Daniel van der Werff
Norman Hotson, Joost Bakker, Alan Boniface, Bruce Haden
Mixed-use waterfront design and planning, mixed-use urban
infill, residential, educational, recreational, commercial,
institutional, office and urban planning
Richard Henriquez, Gregory Henriquez
Cultural, institutional, office, residential buildings
1969
38
32
More than
$7 million
Chandler Associates Architecture Inc
Sheldon H. Chandler, Chris Block, Wally Ewert
Mixed-use retail/residential, lifestyle centres, multiresidential, seniors' living facilities, commercial office
1987
5
5
More than
$4 million
Neale Staniszkis Doll Adams Architects
Derek Neale, Tom Staniszkis, Jerry Doll, Larry Adams
Housing, mixed-use, health care, special-needs seniors
housing, institutional, building restoration
1976
14
13
More than
$4 million
Graham Hoffart Mathiasen Architects
Ron Hoffart, Mark Mathiasen
Schools, health care, municipal buildings, commercial and
multifamily residential
1972
7
7
More than
$4 million
KMBR Architects Planners Inc
Gregg Brown, Witmar Abele, George Boorman
1958
4
6
More than
$4 million
Iredale Group Architecture
Richard H. Iredale, James S. Emery, Kendall B. Jessiman, Selwyn
Dodd, Peter Hildebrand, Graham Coleman
1980
10
8
More than
$4 million
McFarlane | Green | Biggar Architecture
Steve McFarlane, Michael Green, Michelle Biggar
Schools, colleges, police buildings, firehalls, health care,
seniors, multifamily residential, commercial, recreational
buildings, First Nations projects, sustainable design
Architecture, master planning, structural engineering,
building envelope, interior design, LEED facilitation, heritage
restoration, cultural centres, educational institutions,
commercial spaces, mixed-use developments, First Nations
community buildings, residential
NP
2003
8
6
More than
$4 million
Hughes Condon Marler Architects
Roger Hughes, Darryl Condon, Karen Marler, Stuart Rothnie
1995
17
19
More than
$3 million
Bing Thom Architects Inc
Bing Thom, Michael Heeney
Public buildings, sports and recreation, education, postsecondary, multifamily residential, health care, sustainable
design and planning
Commercial, institutional, cultural and residential projects
1980
18
20
More than
$3 million
Rositch Hemphill and Associates Architects
Bryce Rositch, Keith Hemphill
Multifamily residential and mixed-use developments, master
planning, resort-related developments and seniors-related
facilities
1984
5
5
More than
$3 million
DGBK Artchitects
Sebastian Butler, Greg Dowling, Ralf Janus, Robert Lange
12
9
More than
$3 million
DA Architects + Planners
Mark Ehman, Randy Knill
Health care, education, airports, police and corrections
1972
facilities, residential, sports and recreation facilities, cultural
centres and museums, laboratories, seniors housing, care
centres, hotels and resorts, urban planning
Hotels, highrise residential, large mixed-use projects,
1969
libraries, urban planning, education and community buildings
10
10
More than
$2 million
Merrick Architecture - Borowski Sakumoto
Fligg Limited
Greg Borowski, Graham Fligg, Mitch Sakumoto
Multiple-residential (high and low-rise), institutional,
educational, adaptive re-use, commercial, recreational,
specialty and mixed-use
1984
9
8
More than
$2 million
Bingham Hill Architects
John Bingham, Michael Hill
Multi-unit residential development, educational facilities,
hotels and ski facilities
1961
4
4
More than
$2 Million
CJP Architects Ltd
James Carlberg, Brian Hulme
Institutional, recreational, education and health care
1954
4
6
More than
$2 million
Stantec Architecture Ltd
111 Dunsmuir St Suite 1100, Vancouver V6B 6A3
P: 604-696-8000 F: 604-696-8100 www.stantec.com
Abbarch Architecture Inc
505 Burrard St Suite 1830, One Bentall Centre, Vancouver
V7X 1M6
P: 604-669-4041 F: 604-683-5338 www.abbarch.com
1500 Georgia St W Suite 500, Vancouver V6G 2Z5
P: 604-687-1898 F: 604-682-5398
www.ceiarchitecture.com
1555 Pender St W Suite 350, Vancouver V6G 2T1
P: 604-683-4145 F: 604-683-2827 www.kasian.com
Perkins+Will Canada Architects Co
1220 Homer St, Vancouver V6B 2Y5
P: 604-684-5446 F: 604-684-5447 www.perkinswill.ca
Musson Cattell Mackey Partnership
555 Burrard St Suite 1600, Vancouver V7X 1M9
P: 604-687-2990 F: 604-687-1771
www.mcmparchitects.com
Omicron Architecture Engineering
Construction Ltd
595 Burrard St 5th floor, Vancouver V7X 1L4
P: 604-632-3350 F: 604-632-3351 www.omicronaec.com
8
9
10
11
12
13
14
15
16
17
18
19
20
21
DIALOG1
611 Alexander St Suite 406, Vancouver V6A 1E1
P: 604-255-1169 F: 604-255-1790 www.designdialog.ca
402 Pender St W, Vancouver V6B 1T6
P: 604-687-5681 F: 604-687-8530
www.henriquezpartners.com
601 Cordova St W Suite 270, Vancouver V6B 1G1
P: 604-687-3390 F: 604-687-3325 www.caaarchitecture.com
134 Abbott St Suite 201, Vancouver V6B 2K4
P: 604-669-1926 F: 604-683-2241 www.nsda.bc.ca
10190 152A St Suite 203, Surrey V3R 1J7
P: 604-581-8128 F: 604-581-8148 www.ghmarchitects.com
1788 8th Ave W, Vancouver V6J 1V6
P: 604-732-3361 F: 604-732-1828 www.kmbr.com
One Alexander St Suite 202, Vancouver V6A 1B2
P: 604-736-5581 F: 604-736-5585 www.iredale.ca
15 Chesterfield Pl Suite B, North Vancouver V7M 3K3
P: 604-980-9924 F: 604-980-9915 www.mgbarchitecture.ca
1508 2nd Ave W Suite 300, Vancouver V6J 1H2
P: 604-732-6620 F: 604-732-6695 www.hcma.ca
1430 Burrard St, Vancouver V6Z 2A3
P: 604-682-1881 F: 604-688-1343
www.bingthomarchitects.com
120 Powell St Suite 10, Vancouver V6A 1G1
P: 604-699-6002 F: 604-669-1091
www.rositchhempill.com
1500 Georgia St W Suite 950, Vancouver V6G 2Z6
P: 604-682-1664 F: 604-682-2405 www.dgbk.com
1014 Homer St Suite 200, Vancouver V6B 2W9
P: 604-685-6312 F: 604-685-0988 www.da-architects.ca
970 Homer St Suite 300, Vancouver V6B 2W7
P: 604-683-4131 F: 604-683-9313 www.merrickarch.com
22
23
1444 Alberni St Suite 201, Vancouver V6G 2Z4
P: 604-688-8254 F: 604-688-3323 www.bharch.ca
301 Sixth St, New Westminster V3L 3A7
P: 604-526-2764 F: 604-526-6995 www.cjp.ca
Sources: Interviews with above firms and BIV research. Includes firms that responded
to requests for updated information. NR Not ranked NP Not provided 1 - Formerly
Hotson Bakker Boniface Haden Architects + Urbanists
>Next week: Top 100 national and global companies based in B.C.
Do not miss the Book of Lists, a compilation of lists featured in BIV, including
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Year
Architects Architectural
founded '11/'10
fees '10
Business in Vancouver makes every attempt
to publish accurate information in The List, but
accuracy cannot be guaranteed. Researched by
Richard Chu, [email protected].
Business in Vancouver October 11–17, 2011
VRCA News Supplement C7
Ivy joins two buildings
From Office, C5
square feet.
“We’ve opened up the
walls where the existing
building joins the new one,”
said Iredale partner Peter
Hildebrandt. “You can
stand in the corner of stock
exchange building and look
right through to the new
one.”
Ceilings will flow continuously, as will floors. Tenants will simply walk through
arch doorways, which were
formerly windows in the old
building.
The building’s exterior
will downplay the impression of merging a historic
building and a new one
because there will be a wide
vertical sleeve running up
the structure that will be
filled with growing ivy.
That green strip rises part
way up the structure before
sloping south toward the sun
– an element that both helps
the ivy grow and reveals an
Musson Cattell Mackey Partnership’s project at 745 Thurlow
artistic flair that would be
will be a prominent structure visible from Robson and
impossible on a condominGeorgia streets
ium building where there are
balconies, Hildebrandt said.
Across the downtown peninsula, Henriquez is four storeys tall and projects through two city
Partners Architects principal Gregory Hen- blocks over two streets,” he said.
riquez is equally excited by the Telus Gardens
Henriquez’ megaproject includes a 22-storey
project that his firm is developing on Georgia office building, a 44-storey residential building
Street for B.C.’s largest company.
and retail space. u
“We’ll have two elements: your traditional
office tower but also a large cantilevered bar that [email protected]
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C8 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Construction fraternity
backs Honour House
Companies, unions and associations all involved
Fraser Health
I
EllisDon is well underway on the rebuilding of Surrey
Memorial Hospital
Bradley Fehr
t i s l i ke l y t h e m o s t
unusual project that
members of the Vancouver Regional Construction
Association (VRCA) have
ever taken part in.
It is Honour House.
Honour House is a
10-suite home in New Westminster recently opened to
house first responders and
their families when they are
forced to leave their own
communities and come to the
Lower Mainland for medical
treatment. It is owned and
operated by the Honour
House society, a non-profit
organization.
“First responders” covers
everybody from Afghanistan
veterans to firefighters, paramedics and police officers.
Although such facilities
exist in the United States,
this is the first Honour House
to be built in Canada. Word
of its success, however, has
spread so quickly that other
cities including Calgar y,
Edmonton, Winnipeg and
Toronto are considering following the Lower Mainland’s
example.
More than a million dollars has been donated in cash
and kind by members of the
VRCA and consultants and
engineers to make Honour
House a reality. Donations
are still coming in.
In addition, the project is
backed by such organizations
as the Canadian Legion and
the provincial government
through BC Housing.
The VRCA involvement
was headed by Don Vandervoort, a retired construction
executive and a veteran. He
was also chair of the association’s life members committee. Vandervoort took a very
strong personal interest in the
project.
“I was very enthused,” he
said. “Because of my connection with the military
Honour House in New Westminster is now up and running
and because of my affiliation
with the VRCA, I just had a
strong feeling the association
should do something – and
I couldn’t think of anything
better to do.
“I am incredibly proud of
this industry,” he told BIV.
“So many companies, unions,
trade associations and individual workers have contributed to the effort. It’s a good
feeling.”
Vandervoort is a ver y
determined man, and Honour House kept him busy for
more than two years. Last
year, his efforts were recognized with a special award
from the VRCA.
VRCA president Keith
Sashaw echoes Vandervoort’s
enthusiasm. “This gave the
construction industry an
opportunity to give something back to the community”
said Sashaw.
“This is something we are
continuing to emphasize as
we launch our Environmentally Sustainable Construction
program, which puts a heavy
emphasis on community and
social commitment.”
Honour House involved
gutt ing and pre tt y we l l
completely rebuilding a
9,000-square-foot Georgian
mansion built in New Westminster in 1937.
“I am incredibly
proud of the
industry. It’s a good
feeling”
– Don Vandervoort,
retired construction
executive and veteran
All concerned agree it
would have been less expensive to just build a completely
new structure, but it would
not have had the “homey”
atmosphere that Honour
House has achieved.
This is just the latest life
for the old house. It was
originally built by a gentleman who had won the Irish
Sweepstakes.
The designer was A.J. Taylor, the engineer who oversaw construction of the Lion’s
Gate Bridge and for whom
Taylor Way in West Vancouver is named. It remained a
very gracious private home
into the mid-1950s. After that
it was employed for a number
of institutional uses such as a
nursing home and a halfway
house.
The historic integrity of
the home was carefully maintained as it was expanded and
upgraded. Even the landscaping has been completely
redone.
Dozens of trade contractors and suppliers have been
involved. Construction manager was Scott Construction.
In addition to a donation to
the project, they forewent
their usual mark-up on their
work. Walter Frankl, architect, also donated his work.
To make sure residents of
Honour House will be able to
get to and from their medical appointments the British Columbia Construction
Association has donated an
appropriate van.
“It was just one
incredible project,” said
Vandervoort. u
Imagine
www.merrickarch.com
Province’s largestever hospital
investment
EllisDon moves forward on
Surrey hospital project
W
ork is well
underway at the
expansion of
Surrey Memorial Hospital.
After months of excavation
and site preparation the first
concrete was poured this
summer. The general contractor is EllisDon.
The $512 million redevelopment and expansion project is the province’s largestever capital investment in
health care. It includes significant renovations to the
existing hospital and addition
of an eight-storey critical-care
tower. The hospital will gain
151 beds for a total of 650.
The Surrey Memorial
Hospital Foundation will
contribute approximately
$15 million to the project. It
is expected the project will
generate 3,270 constructionrelated jobs.
As a regional centre for the
Fraser Valley, as well as home
hospital for B.C.’s fastestgrowing city, Surrey Memorial will include a greatly
expanded emergency department and other improvements that the government
says will better enable staff to
offer the best possible care to
patients.
The ER will include separate tracks for mental-health
patients, seriously ill or
injured persons, minor illnesses or injuries and pediatric patients. The pediatric
ER will have dedicated pediatric staff.
The emergency department is slated to open in 2013
with the rest of the tower
anticipated to open in 2014.
Ongoing renovation projects
in the hospital have different
completion dates.
The tower will include a
48-bed Level III neo-natal
intensive-care unit (NICU)
for high-risk infants, and an
embedded pediatric pharmacy. It will also offer Canada’s first in-hospital Ronald
McDonald House, which will
provide space for families.
Each NICU bed has its own
room with space for family
to visit and stay over.
Other medical floors will
include an enlarged intensivecare unit, high-acuity beds,
a special stroke unit and the
ability to offer patients bedside hemodialysis. A new laboratory will take up one floor.
Increased teaching space for the
UBC School of Medicine will
expand SMH’s role as a teaching and research hospital.
The expansion of Surrey
Memorial Hospital is the
second major health construction project in the city.
Recently, the $237 million
Jim Pattison Outpatient
Care and Surgery Centre
was opened a few blocks away
from SMH.
“With the recent opening
of the Jim Pattison Outpatient
Care and Surgery Centre and
this redevelopment project,
we are investing about three
quarters of a billion dollars
in health-care infrastructure
in Surrey,” said Finance Minister Kevin Falcon, MLA for
Surrey/Cloverdale. u
VRCA News Supplement C9
Business in Vancouver October 11–17, 2011
Local software firm goes international
a problem.
“What can happen is an owner may get a
bid from a perfectly qualified contractor,” said
Sulpher. “They’d love to work with him and
he’s the low bidder. But they have to throw him
out because he didn’t comply exactly with the
bid. The owner may lose $20,000, $30,000 or
$100,000 because of this.”
The electronic bid form, however, won’t let
the contractor submit a bid if there is an error
in compliance.
Using the system is free to project owners
after an initial $1,000 to cover the software and
training. It is the contractors who pay – and it
is a modest amount. In order to submit a bid,
bidders are required to be authenticated. For
this process, there is an annual fee of $150 for
each bidder.
Although the system has only been introduced in the past few months, it has already been
adopted by several major players. They include
the Lower Mainland Facilities Management
Group, which represents the facilities management for four provincial health authorities. They
are Fraser Health, Provincial Health Services,
Providence Health and Vancouver Coastal
Health. In addition, the Interior Health Authority has adopted it and will no longer be accepting
paper bids. Its use is not confined to construction alone. The University of the Fraser Valley,
for example, intends to use it to gather bids for
furniture and fixtures.
Already word of the system has spread. Infinite Source Systems is now working with the
State of Wisconsin, for one, which is adopting
its software to conduct all their construction bids
online.
By joining forces with Barryhund Administrators, it has greatly expanded its business base
to more than 150,000 customers.
“We are excited about this new relationship,”
said Robertson. “Our substantial expertise in
the field and proven market-leading technology
offerings combine to meet the diverse needs of
the construction professionals who are transitioning the use of online technology.” u
Digital contract bidding now considered complete
By Brian Martin
C
onstruction may be many thousands
of years old. There is nothing ancient,
however, about the technology being
used by the construction industry.
In fact, technology that has been developed
right here in Vancouver is now being embraced
in the United States and shows every sign of
expanding rapidly.
Infinite Sources of Vancouver has announced
a merger with Barryhund Administrators of
Sacramento, California. They say their combined
market strength will allow them to quickly introduce their new technologies and services to the
U.S. construction market. Those technologies
have been evolving rapidly.
For nearly a century, buyers of construction
have dealt with the builders of construction – in
other words “contractors” – through a fairly complex system involving bids and lots of paper.
The system worked for a long time. In recent
years, however, there has been a sea change.
Led by Infinite Source Systems Corp., bidding
in British Columbia has gradually been going
digital.
For some time, general contractors have been
able view plans online rather than having to
physically come into plan rooms. The plan rooms
are operated across the province by the affiliate
members of the BC Construction Association.
In Vancouver and Abbotsford, that means the
Vancouver Regional Construction Association
(VRCA).
Digital tenders have also meant general contractors have been able to solicit bids from trade
contractors online. Trade contractors did not
need to deal with paper bids. This was all made
possible by using software developed by Infinite
The days of rushing around to handle tenders is ending thanks to digital advancements
Source Systems, which works closely with the
associations. One of its principals, Steve Sulpher,
is a former president of the VRCA, and another,
Dave Robertson, CEO of Infinite Source Systems
is a former president of the BC Construction
Association.
While trade contractors could bid to general contractors digitally, there was still a gap in
the system and it involved building owners. The
owners did not have access to the digital system,
and general contractors still had to prepare paper
tenders for them.
Recently, that has changed. Infinite Source
Systems has developed software that allows building owners to place their projects electronically
into the plan rooms and allows general contractors to bid on them digitally.
As a result, the plan rooms will be open to all
contractors whether they are association members or not. There is, however, an additional fee
for non-members to access the plan rooms.
There are a lot of advantages to digital tendering, says Sulpher. The first one is obvious, of
course. Contractors don’t have to jump in their
vehicles and battle gridlock across town to get
their bids in on time. It is done with the touch
of a keyboard.
There are other not-so-obvious advantages,
however. Electronic bidding removes a whole
Aspirin bottle full of headaches. For example, it is
common practice for general contractors to first
submit a bid and then as they gather new prices
from trade contractors to fax in amendments.
This can be asking for trouble. Fax machines
have a habit of jamming. Furthermore, it puts the
responsibility for adjusting the original tender on
the shoulders of the tendering agency or owner.
This is a responsibility they don’t want.
Using the electronic system, contractors can
add to their bids or take away from their bids as
often as they like right up to the minute tenders
close. By the way, there is no doubt about tender
closing time. The minute a tender is posted, a
clock – quite visible to all – starts counting down
to closing time. When the clock runs out, the
tender closes and no amount of praying, cussing
or begging can make it accept a change.
The other major advantage is that electronic
tendering makes it close to impossible to submit
a non-compliant bid. Non-compliant bids are
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C10 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Aboriginal trades training
getting important boost
A
boriginal trades
training in B.C. was
given a boost by the
provincial government this
summer. Young aboriginal
women and men are viewed
by the construction industry
as a potentially valuable source
of new skilled workers. The
average age in First Nations
communities is considerably
younger than in the population at large.
A total of $2.2 million in
funding is being provided
to the provincial Industry
Training Authority (ITA). It
comes from the Canada-British Columbia Labour Market
Agreement, which targets
trades training for aboriginal
people.
The training will be delivered by First Nations and
other agency providers to
about 350 participants in two
dozen communities across
B.C.
Mary Polak, aboriginal
relations and reconciliation
minister, announced the
funding. At the same time, she
announced a further $200,000
research project that ITA will
undertake to identify barriers that limit the success of
aboriginal people entering
Aboriginal apprentice David Ward with Mary Polak, Aboriginal Relations Minister
and completing skilled trades
certification.
The ITA’s CEO, Kevin
Evans, says the funding and
research are two significant
strides forward in the organization’s efforts to increase
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aboriginal participation in the
trades.
Since 2006, aboriginal
participation in apprenticeship training has increased
by 118%. Last year, ITA’s
aboriginal initiative program
served 21 communities across
the province, resulting in 355
aboriginal people being ready
for trades employment.
“We know the skilled
trades are particularly attractive to aboriginal people,”
Evans said. “Many aboriginal communities are close
to major provincial projects,
and the hands-on approach
to the trades and apprenticeships offers components that
are consistent with the values
of many aboriginal cultures.
We need to continue to ensure
aboriginal people have access
to training and assessment
that is flexible and responsive
to their needs.”
His comments were echoed
by Keith Sashaw, president of
the Vancouver Regional Construction Association (VRCA).
The VRCA has been active in
supporting aboriginal trades
training. This is not something
confined only to the northern
and rural areas of the province,
Sashaw pointed out. One of
the province’s largest aboriginal populations is contained
within the Lower Mainland, he
said, as are many of B.C.’s largest construction projects.
The government says
that aboriginal tradesperson,
David Ward, is an example
of how well the support programs are working and the
positive benefits it is providing to workers and their
families. Ward is a 36-yearold first year apprentice
sheet-metal worker from the
Kaska Dene and Taku River
Tlingit First Nations. He took
a Canada-B.C. Labour Market Agreement-funded sheetmetal foundation program
through ACCESS Trades and
is now working full time as an
apprentice.
The funding announcements were made during
a National Aboriginal Day
celebration sponsored by the
ITA, Aboriginal Tourism and
Fortis BC. u
Victoria promotes
northern infrastructure
O
ver the past summer, the provincial government
has approved $120 million
in royalty credits. This will
lead to the development of
30 new infrastructure projects in northeastern British
Columbia. Building the projects will create 2,085 jobs.
Twelve companies were
awarded credits under the
2011 Infrastructure Royalty Credit Program. New
and upgraded roads and
pipelines, says the government, will improve access to
underdeveloped areas and
increase year-round production activities. This in turn
will generate more jobs and
more business opportunities
in the province’s petroleum
and natural gas sector.
Industry funds the entire
cost of each infrastructure
project. Companies can
then apply for a credit of
up to 50% of the construction costs which are applied
against the royalties companies pay to the province.
Victoria points out that British Columbia continuously
evaluates the program and
follows up on what other
jurisdictions are doing.
Forty-nine applications
involving a total request of
approximately $527 million
in estimated construction
costs were submitted to the
Ministr y of Energ y and
Mines for review.
Since its inception in
2004, the Infrastructure
Royalty Credit Program has
led to the development of
75 new road-based ventures
and 93 new pipeline projects. They account for more
than $1 billion in capital
investment and about $5 billion in private-sector drilling and other investment
activities. u
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VRCA News Supplement C11
Business in Vancouver October 11–17, 2011
Building permits
showing increase
B
uilding permit values in the Lower
Mainland-Southwest region are up
so far this year, led by increases in
both the residential and non-residential sectors, according to the Vancouver Regional
Construction Association’s (VRCA) analysis of the most recent Statistics Canada
building permit report, which came out in
September.
Permit activity slipped slightly in July with
declines in residential permits offset by strong
non-residential activity.
Year-to-date building permit values were
up 10% in the Lower Mainland-Southwest
region to $3.63 billion in the first seven
months of this year compared with the same
period last year. Non-residential permits were
up 24% to $1.24 billion from $1 billion last
year. Residential permit values rose to $2.38
billion – up 3% from last year.
“We are seeing a resurgence of interest in
the commercial market which bodes well for
the local construction industry,” said VRCA
president Keith Sashaw. “This reinforces confidence in the local economy and the overall
growth underway in Metro Vancouver’s private sector.
Total building permit values in the region
slipped 4% to $577.7 million in July from
$602.2 million in June 2011. Non-residential
permit values shot up 40% to $229.3 million
from $163.3 million in June, while the value
of residential permits fell back 21% to $348.4
million from $439.02 in June
“Building permit values in the Lower
Mainland-Southwest region held fairly steady
in July compared to June,” said Sashaw. “We
aren’t concerned about the small July declines.
Monthly volatility is a strong feature of building permits.”
Metro Vancouver’s commercial real estate
sector is generating more investment opportunities due to improved market conditions,
according to the VRCA. Commercial permits
during July were at their second-highest level
this year.
Seasonally adjusted, total building permits
in Metro Vancouver held steady with a 1%
decline to $520.9 million in July 2011 compared with $527.7 million in June.
The permits outlook for 2011 is mixed with
fewer public permits but more private activity,
says the VRCA. Public permits increased in
July but declines are expected with government stimulus programs winding down and
fiscal budget consolidation ahead.
With more than 700 members, the VRCA
is British Columbia’s largest and most inclusive regional construction association. It represents both union and open-shop general
and trade contracting companies, manufacturers, suppliers and other professionals
throughout the Lower Mainland from Hope
to Whistler. u
Tenants prefer
“green” buildings
A
report carried in a
recent Light House
Ma r ke t In s i g h t s
quarterly report by Light
House Sustainable Building Centre contains some
interesting facts and figures
concerning green commercial
buildings.
It points out that a 2010
survey conducted by GE
Capital Real Estate has found
that 52% of Canadian tenants are strongly influenced
by green building initiatives
when renting commercial real
estate property.
The survey interviewed
2,220 office tenants from
the U.S., Canada, France,
Germany, Sweden, the U.K.,
Spain and Japan. Canadian
tenants showed a slightly
higher concern for green
building initiatives than
the international average
(50%). Savings in operating
expenses and energy costs
associated with high-performance buildings, as well as
evidence that certified buildings achieve higher rental
rates compared to their noncertified counterparts are all
driving the trend to more
green certified buildings.
Unfortunately, says the
report, like so many such
surveys, it does not gauge
whether tenants are willing
to pay for these initiatives
and, if so, how much. Despite
increased awareness of the
linkages between a healthy
indoor environment and productivity, evidence shows that
cost will generally prevail over
quality.
These findings, says Light
House, also expose emerging
concerns about whether Cana-
da’s building operators are sufficiently qualified and supported
to meet increasingly exacting
demands of building owners,
managers and occupants, particularly in cases where performance accountability systems
are in effect. u
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C12 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Denis Brown joins GovanBrownSzeto’s new Constructors
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Canada is not alone
in facing shortages
Australia aggressively recruiting skilled
labour
By Brian Martin
T
here is no doubt about it: a looming
shortage of skilled workers is among
the most serious problems facing
Canada’s construction industry. The industry, along with the federal government and
provincial governments, maintains future
manpower shortages as a topic priority as
thousands of baby boomers begin to retire
and leave their jobs behind.
Canada and British Columbia are not alone
in this problem, of course. It is something
being faced by many western economies.
The competition between areas and nations
for skilled workers has begun to heat up and is
likely to get considerably warmer in the very
near future. Canada will find itself competing
head to head in the global marketplace for
the men and women it will need to sustain
its economic activity.
One of our “competitors” is likely to be our
sister Commonwealth nation, Australia. The
state of Western Australia (W.A.) has become
particularly active. Western Australia, with a
population of only 2.3 million people, covers
nearly a third of the country.
According to HR magazine, published in
the United Kingdom, Western Australia has
recently been very active recruiting workers
in Britain. Its activities are likely of interest
to employers in this country.
Recently, the state’s workforce development minister, Peter Collier, led a 10-day
U.K. tour.
Research carried out by the W.A. government shows the state will need to recruit as
many as 150,000 skilled workers by 2017. In
remarks that sounded like an echo from the
B.C. construction industry, the minister said
hiring local residents will not be enough to
fill the gap.
Again, just as in Canada, the need for
skilled workers covers virtually every industry
in the state including construction where
some 20,200 new workers will be needed.
Construction will be competing with many
other economic activities such as hospitality
and tourism, transportation, etc.
“W.A. is facing a period of strong economic
growth, creating sustained, long-term career
opportunities particularly in the mining and
resources sector,” said Collier. “With more
than $225 billion [Australian] of resource and
infrastructure projects planned, W.A. is on the
cusp of a 25-year expansion, which, it is hoped,
will drive forward the state’s economy.”
Travelling with the minister was Kath
Soumanis, regional HR manager in W.A. for
the large Australian construction firm John
Holland. That company, which employs
7,000 people across Australia, plans to recruit
another 3,000 to 5,000 people over the next
five years.
“Western Australia is facing
a period of strong economic
growth”
– Peter Collier
Western Australia
Development Minister
The company has put plans in place to
assist emigrants from the U.K. in moving to
W.A. and setting up home there.
“We know some areas we visited, such as
Aberdeen and Dublin, have significant unemployment, and in those areas, jobseekers are
more likely to have the skills we need,” said
Soumanis.
The Australian federal government has
introduced rules making visa applications
more flexible to speed up the immigration
process. A temporary visa can now be obtained
in a week. u
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VRCA News Supplement C13
Business in Vancouver October 11–17, 2011
Constructive
Comment
Legal Specs
Streu
Keith Sashaw
F
or the last two months,
there have been more
people employed in
construction in the Lower
Mainland Southwest region
than there were at the peak of
construction activity before
the economy took a nose dive
in October 2008.
In 2010, building permits
have been tracking about
the same level as in 2006,
which was the period before
the overheated and relatively unsustainable flurry
of activity that characterized 2007 and half of 2008.
Building permit activity
has increased from the low
of less than $200 million in
January 2009 to around $550
million for the last three or
four months.
Total non-residential
investment spending climbed
from a low of $400 million
per quarter in 2003 to reach
a peak of just under $900 million in Q1 of 2008. It subsequently plunged to a low of
under $600 million in Q2
of 2010 and has come back
to $740 million in the last
quarter.
Looking at these figures,
one would think that there
would be a sense of buoyancy
and contentment in the construction industry. Yet, speaking to many in the industry,
there remains a sense of foreboding. While many are cautiously optimistic, there is a
feeling we are still not out of
the woods.
Why would this be? I
would suggest there are a
number of reasons, all of
which amount to the construction industry facing a
significant quantum shift
in the way it should b e
approaching business.
markets and develop expertise in areas they never had to
master before.
Second, there have been
a number of large global
players coming into the
Vancouver scene. Recently
I had two calls in one day
that were indicative of this
development. One call was
from the largest construction company in the United
States with $9 billion worth
of activity in 2010. They have
Now, however, as
we start gearing up
for more activity, the
upcoming skilled
labour shortages
will make those of
the past look like a
cake-walk
recently opened a Vancouver
office and want to become
more involved w ith our
association.
M e r e h o u r s l a t e r, I
received a call from the largest construction company in
France, which did €32 billion.
It is also interested in becoming active in the VRCA and
the local construction market. Clearly these companies
are attracted by the fact that
in spite of the doom and
gloom, B.C.’s economic outlook is one of the best in the
global economy.
B.C. has been attracting
Keith Sashaw is president of
the Vancouver Regional Construction Association.
Hirst
A
noteworthy decision was recently
handed down by
the Supreme Court of British
Columbia on the importance
of complying with mandatory
instructions in a tender. In this
case, a roofing construction
company’s bid was found to
be non-compliant because the
contractor, Admiral Roofing
Ltd., (“Admiral”) showed up
15 minutes late for a mandatory site tour.
The defendant, School
District 57 in Prince George
(the “School Board”), had initiated a tender process for a
construction contract dealing
with roofing for two buildings.
The tender documents indicated that a mandatory site
tour would be held at 8 a.m.
at the first of the two buildings and would be immediately followed by a tour of the
second building. The tender
documents further stated that
the failure to attend the tour
would lead to the non-acceptance of a subsequent bid.
On the day specified,
Admiral’s representative
arrived 15 minutes late for
the tour. By that time, the tour
had already left for the second
building. Admiral’s representative joined the tour at 8:27
a.m. at the second building.
He was asked by a representative of the board if he wanted
to go back to inspect the first
building. Admiral’s representative declined and stated
that he would inspect the first
building another day.
At 9:45 a.m. the same day,
Admiral was advised by the
board’s purchasing manager
that Admiral was no longer
able to submit a bid because
Admiral was late for the tour.
In defiance of the board,
Admiral completed a tour
of the first site, prepared a
bid and submitted it to the
board. The board refused to
open the sealed bid and it was
not considered. The board
awarded the roofing contract
to the only other company to
submit a bid.
Admiral argued at trial
that because it attended the
site tour, signed its name and
later returned to visit the first
building, it had complied with
the mandatory site meeting
provisions.
Admiral further argued
that the mandatory site meeting clause was ambiguous in
that the clause did not say
that a potential bidder had to
“attend the entirety of ” a site
tour, but merely that a potential bidder was required to
attend at a site tour
The court did not accept
either argument, finding that
it was very clear that attendance was required at both
locations of the mandatory
site tour which was to start at
8 a.m. on the day specified in
the tender documents.
Finally, Admiral argued
that its failure to attend on
time was a technical irregularity that should have been
waived pursuant to the clauses
in the tender documents that
gave discretion to the school
board to waive irregularities.
The court rejected this argument on the basis that the
breach in this case was more
than a mere technicality
although it noted that had
Admiral arrived five minutes
late but attended both sites
such a breach would be considered a mere technicality.
Representative’s
late arrival for
site tour killed the
tender
While the decision seems
rather harsh, the court’s reasoning on this point was
that a restrictive interpretation of discretion clauses is
necessary in order to respect
the mandator y requirements of the instructions to
tenders and thereby protect
the tender process. In other
words, where a procurement
authority includes mandatory
language in its tender documents, the court, where it can,
will interpret such language
strictly so that all bidders can
be assured that they will be
treated equally. u
Norm Streu is the chief operating officer of the LMS Reinforcing Steel Group and former
chair of the Vancouver Regional
Construction Association. Chris
Hirst is a partner and the leader
of the Construction & Engineering Group, Alexander Holburn
Beaudin & Lang LLP.
We Make Your Buildings
Work Better
Fewer opportunities
First, there has been a breaking down of the silos in which
the industry operated prior to
2009. Until the 2008 downturn it was typical that construction companies would
operate in niche markets,
such as residential, industrial,
commercial, highrise residential and institutional.
With the financial crisis,
there were fewer construction
opportunities, requiring construction companies to look
beyond their niche markets.
Home-builders moved into
non-residential, companies
specializing in institutional
projects moved into industrial, companies that specialized in mega projects looked
at more modest projects.
This resulted in a hypercompetitive environment in
which owners were getting
20 bidders on a project as
opposed to the three or four
they were receiving in 2008.
Construction companies
have had to diversify their
major international companies for several years, and
these last two examples are
signs that the trend is continuing. These new entrants
into the B.C. construction
scene will bring with them
new approaches to doing
business, greater financial
capacity and possibly some
resources that are unique.
The fact is they are here to
stay, and B.C. construction
companies will have to reexamine their business models to figure out how to deal
with them.
The third force bearing
down on B.C. construction
companies is the looming labour shortage. We all
remember the clarion cries in
2007 and 2008 about the disturbing lack of skilled labour.
Well, the economic malaise
provided a respite from the
problem. Now, however,
as we start gearing up for
more activity, the upcoming
skilled labour shortages will
make those of the past look
like a cake-walk. The astute
construction companies are
already looking at how they are
going to retain and recruit the
best available talent, not only
on the tools but in every management and supervisory position in their organization.
In future columns we
will look at some other factors facing the construction
industry and how companies can possibly deal with
the winds of change that are
buffeting them now. u
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C14 News
Supplement
BusinessVRCA
in Vancouver
January
11–17, 2011
Business in Vancouver October 11–17, 2011
VRCA News Supplement
MajorAconstruction
projects in British
round the
Industry
Columbia
continue record-setting pace
T
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Brian Martin
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andconthe
struction industry,
Keith
ceremony
promisessaid
to be
an
Sashaw,one.
president of the Vanexciting
couver Regional Construction Association.
Wood-frame
construction
T h e S ep tem
b er 2 01 0
Wood-frame
construction
report
showed
956
major
continues to be a very controconstruction
planned
versial
topic inprojects
the construction
or underway,
the highest
industry.
The government’s
number
ever. The
projects
move
to allow
wood-frame
had
an
estimated
value
of
construction on buildings up
$197.7
billion.isThe
provinto
six storeys
being
hotly
cial government
out
debated.
It is beingpoints
criticized
the figure isbyfour
times
the
particularly
the BC
Readyvalue
of
construction
projMixed Concrete Association,
ects inwith
2001.several
The number
of
along
fire and
projects
planned or underway
safety
groups.
wasLast
up 8%
and the
was
month,
the value
province
up
almost
5%
over
Septemreleased a new guide, saying it
ber 2009.
builds
on industry knowledge
Provincial
Minisgained
over theFinance
past decade
to
ter Colinthe
Hansen
it was
enhance
qualitysaid
of woodencouraging
to see
strong
frame
multi-unit
residential
major construction numbers
buildings.
given
current economic
Thethe
government
says The
Building Closure Design Guide
– Wood Frame Multi-Unit Residential Buildings offers practical solutions to help ensure that
new residential buildings are
well built. wIt can be purchased
for $70 from the Homeowner
Protection Office. Contact
hpo.bc.ca.
B.C. road builders
in-house costs to external bids.”
He says a municipal auditor
could ensure that decisionmakers are “comparing apples
to apples” and supporting local
businesses.
“Contracting
out work to
as its new executive director.
She replaces Helen Goodland, who will continue
to work with Light House
when she joins the board of
directors.
Founded in 2005, Light
House is a not-for-profit
company at the forefront
of green building activity. It
provides research, advisory
and project management
services to businesses, policy
makers and the real estate
and construction industries.
B efore joining Lig ht
House, Casavant was
president and CEO of Eco
Industrial Solutions Ltd.,
a planning and engineering
consulting group that specializes in industrial development
and eco-industrial parks.
Light House, which is
located in offices on Granville
Island, has plans to expand
into Alberta and Ontario.
professional quantity surveyor status.
The role of the quantity
surveyor is to manage and
control costs within construction projects.
The agreement is the culmination of work that began
in March of 2009 involving
the Canadian Institute of
Quantity Surveyors, the Vancouver Regional Construction Association (VRCA), the
Quantity Surveyors of BC
and the School of Construction and the Environment
at BCIT.
“The VRCA is pleased
with this collaboration, and
the outcome is an excellent
example of what happens
when industry works together
with
other July
professional
Between
and organizations and educational
institutions to improve stanSeptember 2010, the
dards and qualifications,”
said VRCA president Keith
capital cost of all
Sashaw. u
major projects under
construction inon
British
PCL starts work
Columbia was estimated
pre-trial centre
at $61.7 billion
The BC Road Builders and
professionals in the
Heavy Construction Association has decided to wade into
road building and
ork is underway on
the alligator pond filled with
an expanded $90 milthose for and those against the
road maintenance
lion pre-trial centre in Surrey.
provincial government’s plan
PCL Constructors Westcoast
to create a municipal auditor
business may be
is the general contractor on
general.
BCIT degree program
the job, which is a publicJack Davidson, president
one way of offering expands
private partnership.
of the association, has issued
Thanks to a new agreement,
The 216-cell project will
a release saying that by worktaxpayers more
British Columbia Institute more than double the centre’s
ing with municipalities and
New Port Mann
Bridge
project is among the record-setting number
of major construction
projects
underway
in British
of Technology
(BCIT) stuexisting
capacity.
Construcimproving
systems,
a municivalue for their tax
Columbia
dents who successfully com- tion is expected to create 200
pal
auditor general’s office
plete the quantity surveying to 500 construction jobs and
would act as an effective single
dollars”
circumstances.
Pharmaceutical
Science about
by the500
$80person-years
million Osprey
of the construcof
point
of contact for taxpayers between July and Septem- modules
“Major
projects
like
the
ber
of
2010,
the
highlights
Building
at
the
University
master
planned
community
– Jack Davidson, tion management degree employment over
the projand businesses.
proposed
$43 million
West
of Britishwill
Columbia;
in Pitt
Meadows; and
president, program
be steps closer ect’s
anticipated
two-year
“Contracting
out work
to included:
Kelowna rapid
busroad
expansion
major
proj- to
•the
capital
cost of all
major span.
•since
Septemberis2006,
all
BC Road
Builders
being
registered
profesCompletion
set for
professionals
in the
build- •twenty-two
and and
the start
construction ects
started
projectsquantity
under construction
regions
and
Heavyconstruction.
Construction sional
surveyors late
2013. have experienced
ing
roadofmaintenance
on the BC
Cancer
were the (PQS).
in B.C. was
in Partnerships
total project
Association
The estimated
graduatesatof$61.7
this increases
Brookfield
business
may
be oneAgency
way of The largest of these
Centretaxpayers
for the more
North
in $500 million River Green course
billion;will be accredited by Surrey
numbers,
with
increases
entered
into
a fixedoffering
value
Prince
support
jobs residential development the
•twelve
major projects
comof 114%
in the Nechako,
Canadian
Institute
of price
performance-based
for
theirGeorge
tax dollars,”
he said.
and investmentan
throughout
i n Ri
ch m on ddirector
, t h e $ 17 0 Quantity
pleted construction,
larg- partnership
100% in theagreement
Cariboo, with
73%
executive
Surveyorsthe
to have
“Maintaining
in-house New
our
province,”
said
Hansen.
million
Mount
Lehman
est
of
which
was
the
Canexus
in
the
Northeast
and
34%
in
crew is expensive, and this Light House Sustainable completed the necessary edu- the province to design, build,
According
to the latest
ShoppingCentre
Mall in
manufacturing
plant upgrade
the Thompson-Okanagan
hasAbbotsnamed cational
requirements
sub- finance
and maintain the cenis not
always calculated
into Building
Major
Projects
Inventory, Tracy
ford and
the $133
in North
Vancouver,
followed
region.
Casavant
MESmillion
P.Eng. ject
to a final
test to get
their tre
over a 30-year operating
the
costs
when comparing
W
term.
Theproject
Major Projects
InvenThe
is designed
to
tory also
included
47 clean
achieve
LEED
gold certificatechnology
projects
an
tion,
the highest
level with
of susestimatedever
valueachieved
of $17.2inbiltainability
a
lion, such facility
as the proposed
correctional
in British
$500 million
Metro benefits
VancouColumbia.
Expected
ver waste-to-energy
incinerafrom
the design include
an
tion facility
and a environproposed
improved
working
$120 million
James
ment
for staffFort
andSt.lower
green energy
operating
costsproject.
over time as
feaThe of
inventory
a result
reducedalso
energy
tures 101 projects
thatuse,
are
consumption
and water
certified
or
are
aiming
to
be
abundant natural light and
certified under
recognized
improved
indooraair
quality.
green
sysThe building
projec t rating
w il l also
tem like
LEED innovations
(leadership
deliver
numerous
energyand
and
environmeninindesign
surveillance.
talThe
design)
or Green
Gables,
expansion
is the
censuch as the
General
trepiece
of Kelowna
the province’s
Hospital
andplan
Vernon
Jubilee
$185
million
to expand
Hospital
expansions
correctional facilitieswith
anda
total estimated cost
of $433
accommodate
a growing
million.population.
◆
u
remand
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I
VRCA News Supplement C15
Business in Vancouver October 11–17, 2011
Provincial View
Manley McLachlan
T
he value of a healthy trades, it is reasonable to expect
construction industry a large exodus from the workto the economy can- force due to retirements over
not be overstated. Without it, the next decade.
the infrastructure needed to
A significant number of
allow the expansion of other those skilled workers own and
industries and the support- operate their own small busiing services they attract can- nesses in communities across
not be put in place. Without B.C. Many will be facing the
the building blocks needed to need to develop an exit strategy
support that robust industry, in the near future with little or
economic growth will go south no expertise or resources.
in a hurry.
Their children will be grown
One of the most critical and, in many cases, have moved
building blocks is the skilled on to larger centres offerworker. A healthy construction ing more opportunity. They
industry depends on skilled might wish to keep their life’s
trades to get the work done, business operating, but with no
and if there are not enough to one waiting in the wings to take
go around we are quickly in big
trouble.
As trades
“Skill shortages” is not a new
concept. While the urgency of
businesses shut
the topic has waned somewhat
during the economic downturn
down they also
of the last couple of years, it is
making a comeback. Provincial
take away the
initiatives such as the Northwest Partnership Trade Agreeopportunity for
ment have brought renewed
concerns as the industry takes
young people
a look at the combined level of
construction activity projected
to apprentice in
across the western provinces
and the resulting numbers of
that trade in that
skilled and mobile workers
that are going to be needed to
community
accomplish the work.
According to the Construction Sector Council’s forecasts, over and no resources available,
B.C., Alberta and Saskatchewan they are more likely to just shut
will all be experiencing signifi- it down. Not only are jobs lost
cant growth in non-residential and skilled workers exiting
construction activity and acute the workforce, there are other
skill shortages in the coming unfortunate consequences.
years. In fact, they predict that
In a small community, the
the three provinces together loss of a local business can have
will be looking outside the a serious impact. Small towns
region for about 56,000 new can only thrive if they can
skilled workers between now offer essential services to their
and 2019.
residents. If the only plumbThe need for more work- ing contractor in a community
ers won’t just arise from the closes up shop, it’s a problem.
increase in activity. We are also Not only is there no one to call
facing the baby boomer retire- for a plumbing emergency, as
ment scenario.
trades businesses shut down
In the construction indus- they also take away the opportry, the average age of many in tunity for young people to
the skilled trades is approaching apprentice in that trade in that
MT_VAN-constrution
12/16/10
4:36 PM Page 1
50
and over. Given the physical
community.
requirements of many of those
So, not only do the provinces
need more skilled workers to
complete their planned projects, the small rural communities need to attract new families
and businesses just to stay alive.
Finding those skilled tradespeople will include looking to
underused labour pools such
as women and the aboriginal
community.
It will require beefing up
apprenticeship and selling the
advantages of a career in the
trades to young people. However, even after all those routes
are travelled, there will still not
be enough skilled workers to
meet our needs. To prosper as a
region, we are going to have to
look to immigration as a vital
avenue for growing our skilled
labour force.
The BC Construction
Association has joined with the
Alberta Construction Association and the Saskatchewan
Construction Association to
develop recommendations
for the federal government on
improving Canada’s immigration policies. Collectively we
want to see the level of immigration to Canada increase,
particularly among those with
a trade certificate.
In 2009, only 5.4% of
Canada’s economic migrants
held a trade certificate. Policies and criteria that enable
immigration of new workers
with skills appropriate to our
industry need to be put in place
by government.
At the same time, the
industry needs to ensure that
the supports are there to assist
new immigrants into construction careers and businesses.
We believe that a collaborative
approach between provincial
and federal governments and
the industry is the only way to
go and we are actively pursuing
that partnership.
The clock is ticking on skill
shortages. Let’s not wait for the
alarm to go off. u
Manley McLachlan is president
of the BC Construction Association in Victoria.
The VRCA welcomes
the following new members
Associates
Halsall Associates Ltd.
Lindsey Tourand
112 930 W 1st St,
North Vancouver V7P 3N4
P: 604-924-5575
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envelope consulting, due diligence,
structural and envelope restoration,
capital planning and reserve funds,
energy consulting and green design
General
Contractors
Bouygues Building Canada Inc.
Clayton Welwood
1060 - 1500 W Georgia St,
Vancouver V6G 2Z6
P: 604-688-9255
c.welwood@bouygues-construction.
com
www.bouygues-construction.com
Bouygues Building Canada is a member
of the Bouygues Construction Group,
one of the world’s leading construction
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F & M Installations Ltd.
Mike Crucil
2076 Balsam Rd,
Nanaimo V9X 1T5
P: 250-753-1214
[email protected]
www.fminstallations.ca
General electrical contractor
Suite Space Projects Inc.
Shannon Stange
11th floor, 1200 W 73 Ave,
Vancouver V6P 6G5
P: 877-899-8770
[email protected]
www.suitespace.com
We design and build interior spaces
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Adanac Roofing Commercial
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Warde Shearing
Unit 120, 19358 96th Ave,
Surrey V4N 4C1
P: 604-888-1616
[email protected]
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Dallas Watt Demo
Dallas Watt
#149-20033 70th Ave,
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P: 604-777-5173
[email protected]
www.dallaswattdemo.ca
Eagle West Cranes
Charlene Barkman
2190 Carpenter St,
Abbotsford V2T 6B3
P: 800-667-2215
[email protected]
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Holland Roofing Services
Mark Kitchen
255 2416 Main St,
Vancouver V5T 3E2
P: 604-685-8688
[email protected]
www.hollandroofing.ca
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Steep-slope roofing – asphalt, cedar
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Lancelot Tile & Marble Ltd.
Yann Lehoux
7790 Allman St,
Burnaby V5E 2B1
P: 778-397-1766
[email protected]
Robson Crushing &
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George Robson
1203 20800 Westminster Hwy,
Richmond V6V 2W3
P: 604-288-8478
[email protected]
www.robsoncrushing.com
A one-stop company from small to large
excavators to one of the largest Rammer
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pulverizer, mobile concrete and asphalt
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Sunwest Drywall &
Stucco 2002 Ltd.
Ivan Dragich
15120 Spenser Ct, Surrey V3S 5Z8
P: 604-597-3373
[email protected]
steel stud, drywall and t-barr, residential
towers and commercial projects
The Vancouver Regional Construction Association is B.C.’s largest construction association,
representing more than 700 union and non-union construction companies in the Lower Mainland
and Fraser Valley. Member benefits include networking, access to construction opportunities,
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C16 VRCA News Supplement
Business in Vancouver October 11–17, 2011
CCA head sounds a warning
Are public-private partnerships “hollowing out” industry?
By Brian Martin
W
e’ve all read and
heard stories of
great chunks of
concrete falling from a highway tunnel in Montreal. That
city has a serious infrastructure
problem.
Dee Miller can tell you,
however, it isn’t a problem that
is confined to Montreal; it’s a
problem that is nationwide and
growing. By lobbying the government to change the financial component of P3s, she is
determined to see something
done about it.
Miller is the current chair
of the Canadian Construction
Association (CCA). Headquartered in Ottawa, the CCA is the
national voice of the Canadian
construction industry. It has
more than 17,000 member
firms across Canada.
Miller’s “day job” involves
being vice-president of finance
and human resources for JJM
Construction in Delta. It is a
family firm going back more
than 60 years in this area. It
specializes in heavy civil, structural and marine construction
along with environmental and
navigational dredging. Over
the years, the Miller family has
grown the company from a
backyard operation to a firm
JJM Construction of Delta is a 60-year-old family enterprise
that is involved with the South Fraser Perimeter Road
Dee Miller, chair, Canadian
Construction Association
doing in excess of $40 million
per year.
“Among the biggest challenges facing the economy is
renewal of our infrastructure,”
said Miller. “So much of our
infrastructure was designed
and built in the 1960s or even
the 1950s. It was built for a
population of 20 million people, not the 34 million we are
today or the 40 million we will
be by 2020.”
The result, she says, is
obvious to all of us. We see it
in the form of crowded roads
in poor condition, obsolete
health facilities and a shortage
of care facilities for an aging
population.
One of the first challenges,
Miller points out, is that the
country really doesn’t have
a handle on just how large a
problem it is facing.
The CCA is in the process
of correcting that. It is conducting an audit from coast
to coast with the Federation
of Canadian Municipalities
to discover how much infrastructure the nation has, what
condition it is in and what it
will cost to retrofit or replace
where necessary.
That study has already been
started. The first phase, to be
published in January of 2012,
will focus on heavy civil projects – primarily roads, bridges
and water and sewer lines.
When that is done, the plan is
to repeat the exercise for “vertical” construction – in other
words, government-owned
buildings.
The CCA’s job has been
made easier, she points out, by
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recent accounting procedural
changes which require Canadian municipalities to list their
infrastructure on their balance
sheets.
They must show what state
it is in and put a value on it.
“This is an opportunity
for us to accumulate the infrastructure data and create a
benchmark,” said Miller. “Then
we can track it – are we losing
or gaining?”
Miller points out that the
federal government in its last
budget committed to infrastructure renewal. The CCA,
she says, wants to be at the
table with all other stakeholders when it comes time to discuss that.
A growing trend – particularly in British Columbia
– is to finance infrastructure
projects using public-private
partnerships. They are nor-
mally called P3s. Generally,
under a P3, a private consortium is contracted to design,
build, finance and operate a
public facility. Normally the
contract will cover a period of
25 or 30 years after which the
facility reverts to government
ownership.
Governments have often
found this to be a very efficient
way to provide infrastructure,
and Miller says the CCA has no
quarrel with the P3 concept. It
does, however, worry that the
way P3s are currently constituted may hurt the homegrown Canadian construction
industry.
So far, they have worked
only for a handful of very large
Canadian construction firms.
Ninety per cent of the Canadian construction industry,
however, is made up of small
and medium-sized firms.
The problem is in the
financing component of the
P3s.
Traditionally, Canadian
general contractors have
depended on bonds purchased
from the bonding industy for
financial backing for projects.
P3s don’t use bonds in the
same way. They require letters
of credit – cash from recognized financial institutions.
Often P3s require 10% of
the cost of a project covered by
money in the bank. On a very
large project, that can amount
to hundreds of millions of
dollars.
Most construction companies in Canada are not
financially large enough to play
in that arena.
The result is smaller Canadian construction companies
are either shut out of P3 projects in favour of very large,
often offshore, consortiums
or, at best, they are reduced to
being subcontractors working
for those consortiums.
“As an industry we are
lobbying for the government
to consider other methods so
Canadians aren’t left out of the
P3 game,” said Miller.
She has several areas she
would like to see the Canadian government study, such
as allowing performance and
material bonds to back P3
projects just as they have always
underpinned other construction projects.
She even suggests that
Ottawa launch a Canadian
infrastructure government savings bond program that ordinary citizens could buy into. It
would be targeted specifically
at renewing the nation’s roads,
bridges and buildings.
“If governments plan to
solve our infrastructure deficit
by predominantly using the
public-private partnership
process as it is currently structured, they will literally hollow
out the Canadian construction
industry,” she warned.
Considering the CCA estimates that construction in
Canada employs some 1.26
million people and accounts
for 7% of Canada’s gross
domestic product, that is no
small issue. u
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