Construction - Vancouver Regional Construction Association

Transcription

IN VANCOUVER
April 20–26, 2010
scottconstructiongroup.com
CONSTRUCTION
CLIENT:
604.988.1407
Business in Vancouver news supplement
Scott Construction
SCT-09-011
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Business in Van
Earlug – 2.125
www.vrca.bc.ca
Construction industry welcomes
entertainment centre employment
VRCA president calls it excellent news for companies and workers
By Brian Martin
See Employment, C3
Photo: “Cam podmore”
P
remier Gordon Campbell says more than 8,500
direct and indirect jobs
will be created by the construction
and ongoing operation of a large
new entertainment complex adjacent to BC Place in Vancouver.
Keith Sashaw, president of the
Vancouver Regional Construction
Association, called the announcement of the 680,000-square-foot
project “excellent news” for the
construction industry.
“The industry is slowly coming out of a downturn in activity,”
said Sashaw. “This is just the sort
of project the industry and the
general community needs.”
D a v i d Po d m o r e , a w e l l respected developer and volunteer
chairman of BC Pavilion Corp.
(PavCo), was on hand with the
premier in late March to announce
the project.
PavCo is the Crown corporation that manages BC Place.
Podmore confirmed a 70-year
lease agreement with Paragon
Construction industry is pleased with $450 million entertainment complex proposed to adjoin BC Place Stadium
Inside
construction in vancouver
Abbotsford views industrial
expansion
C2
Clean energy leads major
projects list
C12
Unrealistic prices can lead to
problems
C5
National View
C12
Legal Specs
C13
Fifty northern road projects
announced
C6
Athletes’ Village at Whistler
“wins gold” for Britco
C7
Multimillion-dollar expansion
at BCIT
C8
Leaky condos still causing
trouble
C13
Constructive Comment
C14
Partnership construction
projects are available to all
contractors
C14
Trades trainer looks for
commitment first
C9
Work continuing on new
hospital
Homeowner protection
changes are coming
C9
Teams shortlisted for major
hospital
C15
Developing First Nations
land can be a very different
experience
C10
Around the Industry Next issue: July 2010
C15
C15
Contractors feel the squeeze as
industry slump continues
Incomplete drawings and documents result from
rush to get buildings completed at reduced fees
Brian Martin
T
he current slowdown in the
construction industry is no
doubt a bonus for building
owners and developers who are
shopping for contractors.
For the contractors and those
associated with them, however, it has
become a major challenge. Everyone
from general and trade contractors to
designers, architects and material suppliers are being impacted as the pressure to keep costs down increases.
By 2007, the Lower Mainland
construction industry had reached
highs seldom, if ever, seen before.
In 2008, however, a couple of events
came together to punch a hole in the
balloon. The first was the completion of many of the venues for the
2010 Winter Olympics. Even more
important, though, was the near-
collapse of the banking system in
the United States. Almost overnight
funding for many projects – some
planned, some actually under construction – dried up.
Although it appears the scene is
now improving somewhat, it is still
far from the levels it achieved two
years ago.
Although he feels things are bound
to get better, Mike Zaine says at the
See Friction, C3
C2 VRCA News Supplement
Business in Vancouver April 20–26, 2010
Abbotsford views
industrial expansion
By Brian Martin
T
he eyes of the construction industry
focused on Abbotsford recently. Keith Sashaw,
president of the Vancouver
Regional Construction Association, teamed up with Jay
Teichroeb, economic development manager for Abbotsford, at a session that painted a
picture of Abbotsford’s future.
The session they held kicked
off the annual Landscapers’
and Contractors’ Expo.
Their story was a mixed
one, to be sure, but it had a
happy ending.
Abbotsford was particularly hard hit by the provincewide slump in construction
activity that started in 2008
and is still continuing.
“Abbotsford was probably
hit harder than other area of
the Lower Mainland,” Sashaw
said, adding the figures for
non-residential construction
“are not looking very happy
right now.”
Sashaw, however, went
on to say he is anticipating a
turnaround in construction
by the end of this year or early
2011. He also predicted large
opportunities for industrial
construction in Abbotsford.
He based his forecast on the
amount of industrial land
Abbotsford is opening at the
same time that industrial land
is becoming a rarity in other
Lower Mainland cities.
Teichroeb brought the
details to the meeting. Abbotsford has 450 acres of new serviced industrial land coming to
the market. It is in three separate parcels, each of them in
close proximity to the Abbotsford International Airport.
“Those 450 acres will
open up huge development
and employ ment possibilities,” he said. “We expect
close to 42,000 people to be
working in that area when
all is said and done. It will
involve billions of dollars of
construction.”
Not far from the same
area, work is expected to
begin soon on “Abby Lane.”
Being developed by Shape
Properties, a Vancouverbased development firm,
Abby Lane, said Teichroeb,
will be a very large “destination” mall. The $200 million
mall will be 625,000 square
feet on a 20-acre parcel.
“This will probably be one
of the last major shopping
centres that will be able to
find a large enough footprint
in the Lower Mainland,” said
Teichroeb.
“Abbotsford
was probably hit
harder than other
area of the Lower
Mainland”
– Keith Sashaw,
president,
Vancouver Regional
Construction Association
It will not look like an
average mall. It’s design will
be in keeping with Abbotsford’s goal of urbanization.
Abbotsford’s theme is “a city
in the country.” Much of the
parking at Abby Lane will
be underground. The street
level is to be very pedestrian
friendly with a multitude of
sidewalks, plazas and green
A private Russian jet refuels at the new Abbotsford service centre aimed specially at
private aircraft
space.
Other developments either
proposed or underway in the
city include two separate residential developments in eastern Abbotsford totalling some
2,000 units. One of them is a
500-unit building proposed
by Polygon. It marks the first
venture Polygon has made
into Abbotsford. In addition,
said Teichroeb, there are seven
residential towers at various
stages of development, along
with a planned $48 million
senior secondary school.
Over the past two years,
the city itself has been
involved in several very highprofile public capital projects.
Among them has been a new
hockey arena. Home to the
Abbotsford Heat, a professional hockey team, it is basically a smaller version of GM
Place in Vancouver. The city
has also expanded and rebuilt
an existing recreation centre,
a new museum and a new arts
centre.
Abbotsford, said
Teichroeb, is committed to
working in co-operation with
private developers to make
projects happen.
He used a recent development as an example. The
Abbotsford International
Airport plays a major role
in the city’s plans. In midFebruary a new facility for
private jets opened. It offers
an 11,000-square-foot hangar
and 2,000 feet of office space
along with aircraft services
such as parking, fuel, aircraft
grooming and a pilots’ lounge.
On February 11 alone, more
than 40 aircraft used the facility. Among those coming and
going through it while visiting the Winter Olympics was
California governor Arnold
Schwarzenegger.
The jet facility, Teichroeb
said, went from concept to
open doors between September and February.
“The city handled the
permit process in nine days
so the terminal could be open
for the Olympics. If we could
not have done that the terminal would not have been built
and we would be sitting here
looking at a vacant field.” u
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VRCA News Supplement C3
Friction: Subcontracting leads to tight competition “Green” professionals
meet in Vancouver
From Contractors, C1
moment they are pretty tough.
Zaine is B.C. manager of Lockerbie & Hole, one of Canada’s
largest and oldest mechanical
contracting firms.
He uses “desperate” to
describe the current state of
the industry.
“There have been signs
of desperation in the marketplace,” he said. “That’s
what I call it, anyway. Prices
are almost out of sight. The
number of bidders is higher
than I have seen in the 30
years I have been in the business. At times when you are
attending a pre-tender walkthrough, there is a lineup to
get into the building.”
Zaine also said he is seeing
contractors from other areas
of construction such as residential, though, now bidding
for commercial projects.
He pointed out there are
still some pockets of activity.
For example, Lockerbie &
Hole has been able to secure
significant work in the Victoria region. The Lower Mainland, however, remains very
quiet for the firm. It has been
forced to lay off some 50% of
its workforce.
The trend in recent years
is for general contractors to
eliminate their own forces
and subcontract nearly all
of a project. This results in
much of the risk of a project
being loaded on the shoulders
of the trade contractors.
“The contracts we are
being asked to sign are more
onerous than ever,” Zaine
said, adding that the documents and drawings trade
contractors are being asked
to use are less complete than
L
Lower Mainland construction still far from levels of two years ago
different trade, Rick Parliament tells much the same
story. Parliament is operations manager for Comren, a
long-established Lower Mainland wall and ceiling firm.
His firm has also had to
impose significant layoffs and
“The contracts we often finds a dozen or more
competitors bidding on the
are being asked
same job. The result has been
a dive in prices. Parliament
to sign are more
says he is aware of local projects that have been awarded at
onerous than ever” 20% to 30% below budget.
Just like Lockerbie & Hole,
– Mike Zaine,
he has noticed the companies
manager,
that traditionally work in the
Lockerbie & Hole
residential field bidding on
commercial work.
“I think owners would be
The generals, he pointed
swell-served if they spent more out are also feeling the pinch
money upfront getting their as they have to take the lowest
designs more complete.”
prices to get the job,
Although he is in an utterly
The extreme competition
they used to be. This, he said,
is the result of a rush to get a
building up and finished along
with design fees that are not
adequate to get the complete
job done. It is, said Zaine, a
recipe for problems.
Employment: Estimated 3,200 jobs
From Construction, C1
Development Ltd. for
two acres of land on the
west side of BC Place. The
agreement followed a competitive bidding process that
attracted multiple proposals. The $450 million proposed project will feature
two new internationally
branded hotels, as well as
a new casino subjec t to
municipal approval.
“This project will create
thousands of jobs and be an
important generator of tourism and economic activity
for Vancouver and the entire
province,” the premier said.
“During the Olympic Winter Games the streets of Vancouver were alive with the
Olympic spirit. We hope this
entertainment complex will
help capture some of that
excitement.”
The project is expected
to create an approximate
total employment for more
than 3,200. It is estimated it
will also create 2,250 indirect jobs during construction and total employment
of more than 1,900 direct
and 1,300 indirect jobs during facility operations.
The facility is expected
to generate up to $130 million in gaming revenue that
“This project will
create thousands
of jobs and be an
important generator
of tourism and
economic activity”
– Gordon Campbell,
premier,
British Columbia
will be distributed to the
provincial government in
the first full year. Pending
City of Vancouver approval,
the Edgewater Casino will
be relocated as part of the
zoning process.
The $6 million per year
(plus inflation) in lease revenue from the development,
together with other new
development being planned
along with sponsorships –
such as selling the naming
rights to the stadium will help
defray the $458 million being
spent to install a new retractable roof on the stadium.
The new roof will cut
energy costs by $350,000
annually. A further annual
saving of $100,000 will come
through operational savings.
The roof project will create
about 3,000 person-years of
employment and provide an
additional 41 event days to
BC Place. This is expected
to increase the annual economic income from the
stadium from $60 million
to $100 million.
Paragon Development
Ltd. is one of North America’s leading destination
resort developers with special emphasis on gamingbased destinations. It currently operates casinos in
Western Canada. It bought
the Edgewater Casino on
Vancouver’s False Creek
waterfront in 2006. u
and super-tight budgets
have made for some strained
relationships between general contractors and trade
contractors.
“It’s not always going to be
tight like this, and it is important for all to maintain a high
level of courtesy and respect
for our fellow tradesmen. At
Comren, we’ve learned that
building and servicing strong
relationships is the key to
long-term success. This is
true through any economic
time – the good, the bad and
the ugly.” u
ocal and international
green building professionals gathered in
Vancouver during the 2010
Winter Olympics for a networking session and celebration of sustainable building
here and abroad as part of the
province’s Olympic Business
Visitors Hosting program.
“The 2010 Winter Games
were the greenest ever and
they’ve created the perfect
backdrop for leaders in sustainable building,” said Iain
Black, minister of small businesses, technology and economic development.
The four-hour event featured an exhibition of architectural models for outstanding local projects, including
the Vancouver Olympic and
Paralympic Village, which
was awarded LEED platinum.
Only two neighbourhoods of
this size in North America have
been awarded platinum certification. The other is Dockside
Green in Victoria.
“B.C. once again showed
that it is a global leader in sustainability with world-class
green venues and athlete villages,” said Thomas Mueller,
president and CEO of the Canada Green Building Council.
“A total of 31 buildings have
pursued LEED certification,
which is the largest number
ever for Olympic Games.”
The council co-hosted
the business event with the
Ministry of Small Business.
“These buildings showcase
local excellence in sustainable
design and will provide a lasting environmental legacy for
British Columbians.”
Earlier, the council presented awards to the B.C.
government, the Vancouver
Organizing Committee,
Vancouver, Richmond and
Whistler for global leadership
in sustainability related to the
2010 Games.
The Vancouver Olympic
and Paralympic Village, for
example, has green roofs,
waste-heat capture systems,
rainwater collection and accessible design. Two buildings
within the village have been
awarded LEED gold certification. The village will eventually
house 15,000 Vancouverites.
Major sponsors of the
event were BC Hydro, the
City of Vancouver and Stantec, which provides consulting services in planning, engineering, architecture, interior
design, landscape architecture,
surveying, environmental sciences, project management
and project economics for
infrastructures and facilities projects across North
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I
list
Biggest construction starts in 2009
Ranked by estimated costs of project
Rank Project name, municipality
'10
Website
Project type
Description
Start date
Completion
date
Developer/Owner
Website
Estimated
cost
1
Gateway Program - Port Mann Bridge/
Highway 1 Improvements, Langley to
Vancouver
www.pmh1project.com
Transportation
New 10-lane bridge across the Fraser River between Coquitlam and Surrey to replace the Port Mann Bridge
developed by the Connect BC Development Group consortium
February
2009
2013
BC Ministry of Transportation and
Infrastructure
www.gov.bc.ca/tran
$2.5 billion
2
Westhills Green Neighbourhood,
Langford
www.westhillsbc.com
Residential
A 6,000-dwelling project above Langford Lake on a 83-hectare site which will include a shopping centre,
passenger station for the E&N Railway
Spring 2009 2029
Westhills Land Corp.
www.westhillsbc.com
$2 billion
3
McKinley Landing Resort, Kelowna
www.ggroup.ca
Resort
A 1,000 residential-unit resort on a 351-hectare site that will include a boutique hotel, retail, a health and
wellness centre, convention space, winery, golf course, marina and beach club
Spring 2009 2017
G Group of Companies
www.ggroup.ca
$477 million
4
The Hudson Residential Development,
Victoria
www.hudsonliving.ca
Residental/
Commercial
Redesign and addition to the former The Bay department store in downtown Victoria
Early 2009
2012
Townline Group
www.townline.ca
$300 million
5
Fort St. John Hospital Replacement, Fort
St. John
www.northernhealth.ca
Health care and social A 55-bed hospital with a 123-bed residential care facility
assistance
Summer
2009
2011
Northern Health Authority
www.northernhealth.ca
$297 million
6
West Pender Place, Vancouver
www.westpenderplace.com
Residential
Condominiums in a 10-storey and a 36-storey highrise tower connected by a five-storey townhouse complex
Early 2009
Spring 2010
Reliance Properties (Coal Harbour) Ltd. $225 million
NA
7
Channel Ridge Village, Salt Spring Island
www.channelridge.com
Residential/
Commercial
Development for the north side of Saltspring Island that includes 320 single- and multi-family homes, a town
centre with 54 commercial units
Fall 2009
2011
Channel Ridge Properties Inc.
www.channelridge.com
$200 million
8
Canexus Manufacturing Plant Upgrade,
North Vancouver
www.canexus.ca
Manufacturing
Upgrade of Canexus manufacturing plant on Amherst Ave., which will increase production capacity by 25%,
increase rail traffic and reduce onsite chemical storage
Early 2009
Early 2010
Canexus Chemicals Canada
www.canexus.ca
$180 million
9
Beasley Residential Tower, Vancouver
www.thebeasley.com
Residential
A 221-unit condominium development in a 34-storey tower located at Homer St. and Smythe St. in downtown Summer
Vancouver
2009
9
Juniper Ridge Residential Development, Residential
Kamloops
A six-phase 93-hectare, 668-unit residential development
Spring 2009 2015
Tercon Construction
www.tercon.ca
$150 million
11
Okanagan Transmission Reinforcement,
Kelowna
www.fortisinc.com
Utilities
Electrical expansion and upgrades in the South Okanagan and Kelowna areas
Spring 2009 2011
Fortis BC Inc.
www.fortisbc.com
$141 million
12
Adams Lake Sawmill Replacement,
Adams Lake
www.interfor.com
Wood-manufacturing
plant
Adams Lake sawmill replacement will include design features for pine-beetle-killed wood products
Spring 2009 2010
Interfor
www.interfor.com
$100 million
12
South Peace Pipeline, Fort St. John to
Taylor
www.spectraenergy.com
Natural-gas pipeline
An 850-kilometre gas pipeline to extend from Fort St. John to McMahon processing plant in Taylor
Spring 2009 Late 2010
Spectra Energy Corp.
www.spectraenergy.com
$100 million
12
Transit Security - ALRT Faregates and
Smartcards, Metro Vancouver
www.translink.ca
Transportation
Installation of controlled-access gates and electronic fare cards for the Lower Mainland's rapid transit
network
Summer
2009
Spring 2013
TransLink
www.translink.ca
$100 million
15
Central Vancouver Island Reinforcement Utilities
Project, Nanaimo area
www.bctc.com
Reinforcement of the Central Vancouver Island transmission line and substations
December
2009
October 2010
BC Transmission Corp.
www.bctc.com
$91 million
16
Wood Lake Resort, Kelowna area
Residential/Resort
A 480-unit resort development with three six-storey buildings and restoration of a lagoon
Spring 2009 2011
Renascence Developments
www.renascencedevelopments.com
$90 million
17
The Heritage Condominium, Westbank
Residential
A 180-unit, 10-storey condominium tower with a 160-unit supportive living residential tower. Project will
include an eight-storey commercial building
January
2009
EM Power Financial Services/
Investicare Seniors Housing Corp.
www.investicare.ca
$85 million
18
The Foothills at Burke Mountain
Residential Development, Coquitlam
www.thefoothillsatburke.com
Residential
Development of 1,600 single and multi-family units located on Burke Mountain to be built in four phases
Spring 2009 2011
Wesbild Developments
www.wesbild.com
$80 million
19
Oliver "Wine Village" Mixed Use
Development, Oliver
Residential/
Commercial
A village on 4.3 acres adjacent to Highway 97, which will include residential units, a four-storey hotel,
commercial facilites to showcase local wineries
Spring 2009 2010
Bellstar Development Inc./Cooperators Development Corp. Ltd.
www.bellstar.ca
$75 million
20
Brewers' Distributors Warehouse, Port
Coquitlam
Warehousing
Development of a 460,000-sq.-ft. brewers' distributors warehouse located in Port Coquitlam
Summer
2009
Early 2010
Beedie Group
www.beediegroup.ca
$60 million
20
Cloverdale Fairground Redevelopment,
Cloverdale
www.surrey.ca
Arts, entertainment
and recreation
Redevelopment of the Cloverdale fairgrounds located at 64th Ave. and 176th St. Project includes a 13,500-sq.- Fall 2009
metre exhibition centre with the ability to expand it to 45,000 sq. metre, a 5,500-seat arena and a 250-room
hotel
NA
City of Surrey
www.surrey.ca
$60 million
20
Hillside Shopping Centre Expansion,
Victoria
www.hillsidecentre.com
Retail
Addition of approximately 100,000 sq. ft. for 20 stores and renovations to the existing 104-store mall at
Hillside Ave. and Shelbourne St., increasing the mall's size to 525,000 sq. ft.
Fall 2009
Spring 2011
Ontario Pension Board/20 Vic
Management
www.opb.on.ca
$60 million
23
Burnaby Central Secondary School
Upgrades, Burnaby
central.sd41.bc.ca
Educational services
Replacement of the existing Burnaby Central Secondary School to provide 1,300-student capacity
Spring 2009 September
2011
School District 41 (Burnaby)
www.sd41.bc.ca
$51 million
24
PGP Bio Energy Project, Prince George
Utilities
Bioenergy project at the Canfor Pulp Mill, to generate electricity and heat from pine-beetle-wood residue
Fall 2009
Canfor Pulp/Canfor Corp.
www.canfor.com
$50 million
25
Copper Sky Condominiums, Westbank
www.copperskyliving.com
Residential
Lowrise condominiums with 536 units in 10 buildings
Spring 2009 2011
Rempel Copper Sky Development Ltd.
NA
$48 million
25
Dilworth Mountain Estates, Kelowna
Residential
Phase 4 of the Selkirk neighbourhood in Kelowna, which will include 40 new home sites, 160 townhomes and Spring 2009 2010
12 single-family lots
Dilworth Homes
www.dilworthhomes.com
$48 million
27
University of Victoria - Campus Renewal, Educational services
Victoria
www.uvic.ca
Renewal of six academic buildings including University Centre, the Cornett
Fall 2009
March 2011
University of Victoria
www.uvic.ca
$43 million
28
Highway 97 Interchange at Westside
Road, Kelowna
New interchange at Highway 97 and Westside Road
Fall 2009
Fall 2011
Infrastructure
www.gov.bc.ca/tran
$42 million
29
Glenmore at Morgan Heights, White Rock Residential
www.glenmoreliving.ca
A 214-unit townhouse development
Summer
2009
Late 2010
Intracorp Developments
www.intracorp.ca
$40 million
29
Hwy 99 - Old Capilano Bridge: Marine
Drive/Lions Gate Transit, West Vancouver
Transportation
Improvements to Marine Drive and the replacement of the Capilano River "blue bridge" with a three lanebridge
Summer
2009
March 2011
Infrastructure
www.gov.bc.ca/tran
$40 million
29
Interconnection Project - East Toba and
Montrose, Powell River
Utilities
Interconnection infrastructure for independent power projects at Toba Inlet and Montrose Creek
Spring 2009 Spring 2010
BC Transmission Corp.
www.bctc.com
$40 million
Transportation
Source: Information provided by Jackie Hamilton and Associates, a Victoriabased regulatory and research consulting firm. Since 1997, the firm has been
the principal author of the provincial Major Projects Inventory.
NA Not available
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February 2011 Amacon Development
www.amacon.com
Early 2010
Late 2009
$150 million
Business in Vancouver makes every attempt to publish accurate information
in The List, but accuracy cannot be guaranteed. Researched by Richard Chu
and Noa Glouberman, 604-608-5114.
Real Estate Appraisers and Consultants
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Unrealistic prices can lead to problems
Trade contractor prepares guidelines for building owners
T
he construction
industr y is going
through a bit of a
slump following the boom
years of 2008 and 2009. This
means lower costs and more
competitive bids for building
owners looking to renovate
existing facilities or build new
ones. On the flip side of that
coin, however, it also means
there can be some dangerous trends showing up in
the practices of a minority
of contractors.
Rick Parliament, operations manager of Comren, a
Lower Mainland wall and ceiling company, has compiled a
list of some of them. His warnings apply not only to the wall
and ceiling field; many apply
equally to any other sector of
construction.
Fictitious change orders
In some cases, subcontractors find themselves in a position where their bid is so low
they undercut themselves.
To recoup costs, they ask for
change orders for incomplete
drawings, unclear scopes
of work, level of difficulty
changed or not allowed for
in labour costs, etc. The reason for change orders can get
quite creative and become
very expensive.
Unqualified workers
Labour is the highest operational cost, and there have
been numerous accounts of
companies failing to provide
area standard wages and
benefits to workers on their
projects. Substandard wages
and benefits exert downward
pressure on area standards.
They detour and discourage
well-qualified and productive workers from entering or
remaining in the construction industry.
Poor workmanship
After a considerable amount
of investment, you want to be
sure the project is completed
to the highest standards. Joint
tape, whether paper or fibre
tape, may not be used in the
first coat of the drywall mud
application resulting in future
cracks throughout the entire
project. This will usually show
up after the painting process
and once the furniture and
space is in full use and the
temperature is controlled.
Often this type of poor workmanship is obvious.
Bait and switch
Insulation can be removed
after the inspection process and prior to wallboard
installation for reuse in other
areas of the project or on an
entirely different project.
Poor site conditions
You hear it all the time –
complaints from tenants and
patrons that the site is a mess
and is obstructing their daily
lives. As a stakeholder who is
typically away from the job
site, it can be a challenge to
keep tabs on site conditions.
It’s an unnecessary issue
that you will wish you didn’t
have to deal with. And you
shouldn’t have to.
Failure to assign
adequate resources to
the job
In today’s changing economy, projects are more time
sensitive than ever before.
Preplanning, templates,
prefabrication and mockups are essential in order to
meet project demands and
schedules. The preplanning
stage can be especially time
consuming and use a lot
of resources to achieve the
desired outcome.
In some cases, the use
for toxic mould. When it
gets wet, insulation becomes
a conductor of hot or cold
rather than an insulator. For
example, wet insulation in
the winter freezes into ice and
increases energy costs by up to
70%. It’s the same in the summer. Wet insulation maintains
the heat rather than protecting
against it. This also increases
energy costs significantly.
United States as an example.
Contractors found considerable cost savings in material
that resulted in potentially
fatal results. Homeowners
started complaining about
foul odours, rampant copper
corrosion and even respiratory problems. Cheap materials can be harmful, toxic and,
in some cases, deadly.
Saving on quality material
Chinese wallboard is a good
example. While it is still
unclear how many thousands
Take the Chinese wallboard
epidemic in the southeastern
Litigation on the rise
or her risks considerably
by shopping for the “right”
contractor. The following
are some pointers for doing
just that.
1. Look for a company
that has been around for at
of people have been affected
least 15 years.
by the wallboard epidemic we
2. Are they trained? Many
are sure to see millions of dolsubcontracting crews with
lars in class action lawsuits.
lower overheads have been
Don’t forget toxic mould.
thrown together with inexIn 2003, the term “sick buildperienced and unqualified
ing syndrome” was first
workers.
brought to the public’s aware3. What about safety?
ness. It’s just a few short years
Some 35% of wall and ceillater, and there are now more
ing firms have been fined for
than 10,000 cases of toxic
safety violations in the past 12
mould and sick building synmonths. Companies can be
drome in the United States.
held liable by the plaintiff.
4. Ask the contractor for
Find the right contractor
full documentation. This
A building owner can cut his
“Wet insulation in the
winter freezes into ice
and increases energy
costs by up to 70%. It’s
the same in the summer.
Wet insulation maintains
the heat rather than
protecting against it”
– Rick Parliament,
operations manager,
Comren
of a foreman, tradesmen,
labour and warehouse space
are required for weeks on end
in order to plan, prepare and
work out fine details prior
to prefabricating the final
product. Everything has to
be ready to install as soon
as the work area is available.
Unless the trade contractors
are a certain size they cannot
account for the additional
time and resources involved
in such a critical process.
Hiding or masking issues
Projects are more complex
than ever before. Complexity
is created from not only challenging technical and design
issues, but also from various
stakeholders who naturally
have different objectives for
the project.
It is important that contractors and subcontractors
communicate their key concerns as soon as they arrive.
This could be either a mistake
in the drawings, a schedule
delay or a framing concern.
It is not good enough to hide
issues in hopes they may just
go away.
Mismanaged materials
Wet insulation causes a serious drain of energy and
provides a breeding ground
www.millson.net
See Research, C6
Research: Get resumé and client info
From Unrealistic, C1
will include the contractor’s
licence and registration number; proof of liability insurance; proof of bond coverage
for total replacement of your
project; and proof of WorkSafeBC coverage.
5. Ask the contractor for a
resumé, which should include
the company’s legal name,
street address and telephone
number; number of years in
the business; education and
training; financial standing
with the bank along with
credit standing with suppli-
ers; and references from previous customers.
6. Do some background
research with the Better Business Bureau.
7. If you can, visit a contractor’s current worksite and
check it out.
8. Ask the current client
pertinent questions.
9. Be sure to ask the contractor for a copy of the standard contract for your review.
Never sign a blank standard
contract. Check the terms on
the contract.
10. Use the proper, stan-
dard industry documents to
promote a fair allocation of
risk for parties. u
Comren has worked in the
wall and ceiling field since
1994. It serves the construction industry in all aspects of
interior construction, renovation and restoration. The firm
is active within the industry
and belongs to the Vancouver Regional Construction
Association, the Independent
Businesses and Contractors
Association and the B.C. Wall
and Ceiling Association.
Benefiting Burnaby Hospital Foundation
Make sure you do your research when selecting a contractor. Comren ha sbeen in the wall
and ceiling field since 1994
Fifty northern road
projects announced
T
he provincial government has announced
a major road
improvement program for
northern British Columbia.
It does not, however, involve
one large or glamorous project. Instead it is comprised
of 51 separate, smaller projects. They are spread over
three regions. Projects in the
northwest cover roads in the
Kitimat, Terrace and Hazelton regions.
Projects in the north-central involve jobs in the Prince
George and Vanderhoof area
and roads in the Fort St. John,
Dawson Creek and Fort Nelson portion of the province
are covered off under projects
in the Northeast.
The program is funded
by the provincial and federal
governments, with municipal
governments in the regions
involved.
It brings the value of
ongoing highway construction across the region to more
than $200 million, according to B.C. Premier Gordon
Campbell and Transportation Minister Shirley Bond.
“This will be one of the
busiest highway construction seasons in the north on
record,” Campbell said.
The premier said there are
70 new and ongoing highway
projects across northern British Columbia. He estimated
the projects will create more
than 1,200 direct jobs. Almost
400 highway and other transportation infrastructure
projects are scheduled for
construction across the entire
province.
“Many of these projects
will be excellent opportunities for our smaller contractors who employ local workers and local equipment,” said
Jack Davidson, president of
the BC Road Builders and
Heavy Construction Association. “The work our members
will do this construction season on hundreds of projects
across the province will benefit British Columbia’s economy for years to come.” u
When it comes to solving your environmental issues,
we do all the heavy lifting for you.
Our practical management and planning approach
works to reduce your risk, cost and aggravation.
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Go to Burnaby’s Economic Development Strategy
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Planning Department at 604.294.7400 to learn more.
Olympic Athletes’
Village at Whistler
“wins gold” for Britco
Workplace
accidents hurt
more than just
the bottom line
By Don Schouten, WorkSafeBC Manager of
Industry and Labour Services – Construction
E
very April 28, we remember those
who have been seriously injured
or killed because of their job.
Last year, 121 workers died in British
Columbia. That’s 39 fewer deaths than
in 2008, but it’s 121 deaths too many.
As you know, workplace injury, death,
and disease are unacceptable costs
of doing business. Safe workers and
workplaces not only mean a better
financial bottom line, but also save coworkers, friends, and families from the
suffering that could never be calculated
by any financial report.
The Athletes’ Village at Whistler has been a major winner for Britco
T
h e At h l e te s’ Vi l lage at Whistler has
won Britco a major
award.
The Modular Building
Institute (MBI) selected the
Whistler Lodge as the best
modular building in North
America at its annual general meeting in Orlando
last month. Langley-based
Britco was both the builder
and manufacturer of the
facility.
The lodge is a four-storey building with 100 rooms
that was built to accommodate 200 athletes during the
2010 Winter Games.
The 59 modules assembled to form the top-three
floors of the building were
manufactured at Britco’s
modular manufacturing
facility at Agassiz. The first
floor was built onsite with
a cast-in-place concrete
section and a partial basement. Next door to the
lodge, Britco also supplied
a 20-unit townhouse complex using 56 modules. In
selecting Britco the MBI
hi g hl ig h te d t he lo dge’s
architectural excellence,
technical innovation and
energy efficiency.
“From the outset, our
go a l w a s to d e s i g n a n d
manufacture a building
that would exemplify excellence and that all Canadians
could be proud of when the
world came to visit Whistler and Vancouver in 2010,”
said Britco co-founder Rick
McClymont, who was on
hand to receive the award in
Orlando. “This is our gold
medal and it belongs to our
team at Britco who delivered
a spectacular Winter Games
legacy project.”
Britco designed the
building to LEED silver
equivalent and incorporated
a hydronic heating system
using Whistler’s in-ground
energy system.
The company’s executive
vice-president, Mike Ridley, says he believes Britco’s
lodge and townhouse complex demonstrate that a
“From the outset, our
goal was to design
and manufacture a
building that would
exemplify excellence”
– Rick McClymont,
co-founder,
Britco
modular approach to construction may be the best
way to deliver high-quality,
sustainable buildings.
“Factory built,” he said,
“ i s co n s i s t e n t w i t h t h e
highest standards of environmental sustainability
because there is much less
material waste, significantly
reduced impact on the site
and far fewer issues related
to water intrusion.”
Ridley said he believes
the demand for sustainable
buildings will be one of the
key drivers of the modular
industry in coming years.
He said that by building modules in a controlled
factory environment and
taking them to the site for
assembly, many challenges
were eliminated during the
lead up to the Games – a
time when construction was
booming and Olympic officials had tight timetables to
meet. While site preparation
was underway in Whistler,
modules were being manufactured in Britco’s factory
ensuring the lodge was completed and turned over to
VANOC in the summer of
2009, well in advance of the
2010 Winter Games.
Co-founder David Taft
noted that Britco’s role as an
official supplier to the Vancouver 2010 Olympic and
Paralympic Winter Games
presented a unique opportunity for the company to
showcase its design-build
expertise on the world stage.
“The 2010 Winter Games
provided us with a platform to profile our modular design-build capabilities in ways we could not
have imagined when we
embarked on this adventure w ith VANO C three
years ago.”
Britco also manufactured
temporary accommodations
used by almost 600 additional team officials in the
Whistler Athletes’ Village.
Built from 74 mo dules,
all components were built
indoors and under controlled conditions at Britco’s
factories in Penticton and
Agassiz. u
Each Day of Mourning reminds us that
while we continue to make significant
improvements in workplace safety, our
job is not done yet.
Recently, WorkSafeBC organized an
industry symposium in Kelowna to
increase safety in the roofing industry.
The symposium focused on roofers
because they are injured much more
often than other workers in British
Columbia. Compared to the 2008
provincial injury rate of 2.96 per 100
person years of employment, steep
slope roofers have an average injury
rate of 11.5 while low slope roofing
has an average injury rate of 8.5. In
other words, roofers are about twice or
almost four times more likely to be hurt
compared to other BC workers.
Falls from elevation are a major cause
of injuries, making up 34% of claims in
steep slope roofing and 19% of claims
for low slope roofers. Overexertion
and being struck by something are also
common accident-types in roofing.
Accidents cost the roofing industry
more than $9.6 million and over 28,000
lost workdays in 2008 alone. But
workplace accidents extend beyond
numbers and into everyday lives.
At the symposium, Noreen Carlton
shared how her son slipped off a
roof while reaching for a roll of felt
paper. Because he wasn’t wearing
fall protection, Randy Carlton fell 14
feet, landing head-first on a concrete
slab. Waiting for her dad to finish his
workday, Randy’s sixteen year old
daughter witnessed the entire accident.
With the brain damage he suffered
from the fall, Randy won’t ever live a
normal life again. He can’t even carry
on a simple conversation without losing
track of what’s happening.
Roofing is a dangerous job and
everyone needs to play a role in making
it safe. That’s why one of the focuses
of WorkSafeBC safety officers is the
roof when inspecting construction sites.
As part of WorkSafeBC’s provincial
high-risk strategy, they’re looking to
make sure that the appropriate safety
measures are in place to keep everyone
safe, things like: a written fall protection
plan, properly secured ladders, and
appropriate fall protection systems that
are being used. Many accidents happen
because of inadequate training, preplanning, fall protection, or supervision.
As employers, you play an important
role in setting the standard for safety.
We need your help to make workplaces
as safe as possible so people like
Noreen don’t need to talk about how
their family has been forever changed
by a preventable workplace accident.
On WorkSafeBC’s website, you can
find a variety of resources including
toolbox talks, hazard alerts, and videos
at http://www2.worksafebc.com/
Portals/Construction/Home.asp that will
help you reinforce the importance of
workplace safety.
For this year’s Day of Mourning,
WorkSafeBC is co-hosting a ceremony
with the Business Council of British
Columbia and the British Columbia
Federation of Labour to honour those
who have been seriously injured or
killed because of their job. Beginning at
10:30 am, the ceremony will take place
at the Vancouver Convention Centre. I
encourage you to attend and show your
commitment to workplace safety.
If you can’t attend this or another
ceremony in your area on April 28,
please take a moment to honour those
workers who didn’t make it home at the
end of the day.
Please let me know your thoughts on
this, or any construction safety issue.
Call me at 604-214-6989 from the
Lower Mainland, toll-free elsewhere
at 1-888-621-7233, or by e-mail Don.
[email protected]..
The VRCA Welcomes the
following New Members
General
ContraCtors
Royal Globe Construction Ltd
Daniel Chen
10298 129 St., Surrey V3T 3G9
(604) 839-8588
www.royalglobe.net
Commercial and residential general contractor.
Crocan Residential Construction Ltd
Joe Cesar
8-19122 27th Ave, Surrey V3S 5T1
(604) 542-2052
www.crocanconstruction.com
General contracting company specializing in all
home renovations.
C3 Integrated Solutions Inc
Rick Bongers
1133-11871 Horseshoe Way,
Richmond V7A 5H5
(604) 277-7777
General Contractor.
trade ContraCtors
AK BLACKBIRD CONSTRUCTION
Ali Karakus
806-1450 Chestnut Street, Vancouver V6J 3K3
(604) 720-4319
Stucco, wallpaper, painting & flushing.
Panelex Industries Inc.
Belinda Howes
15371 Knox Way, Richmond V6V 3A8
(604) 241-3173
www.panelex.ca
Manufactures metal panels and flashing, customfabricated to meet a variety of requirements.
Trico Electric
Bob Clark
38 Riverside Road, Abbotsford V2S 8B6
(604) 855-9878
Trico Electric is an electrical contracting
company that has been providing exceptional
quality electrical work for over 25 years, mainly
specializing in multi-residential and commercial
construction.
Alco Drilling Services Ltd.
Brandon Paulson
20118 52 Ave., Langley V3A 6R7
(604) 534-9484
www.alcodrilling.com
A family owned and run drilling company
specializing in geothermal drilling and ground
loop installations.
Termel Industries Ltd.
Clayton Kensley
1667 Railway Street, North Vancouver V7J 1B5
(604) 984-9652
Industrial Mechanical Installation Contractors,
providing millwright, ironworker & industrial
sheet metal services, including dust collection
systems, venting, metal fabrication supply and
installations, pertaining to bulk commodity
handling industries.
Sancor Irrigation & Landscaping Inc.
Cory Persson
42750 South Sumas Road, Chilliwack V2R 4L7
(604) 861-9917
www.sancorlandscape.com
Variety of services including design-build
irrigation systems, soft landscapes, green roofs,
stamped concrete, paving stones, retaining
walls, landscape design, drainage, excavation
and commercial maintenance.
Accurate Aluminum Ltd.
Jason Baxter
6410 Arbroath Street, Burnaby V5E 1C4
(604) 437-6006
Aluminum guardrails and handrails.
Indian Head Contracting Ltd
Jim Blair
15725-Pacfic Avenue, White Rock V4B 1S4
(778) 294-1968
Trade Contractor.
Pacific Rim Industrial Insulation
Jordon Smith
unit 214 6333 148th street, Surrey V3S 3C3
(604) 543-8178
Insulation contractors.
Europhil Fabrication & Machining Corp.
Jose Dumrique
Unit 107 19661, 96th Avenue, Langley V1M 3C9
(604) 513-4179
Customized stainless steel and stainless
steel fabrications, general fabrications and
machine works for industrial and construction
equipment.
Standing Man Construction Ltd.
Josef Bartinger
2942 Grant Street, Vancouver V5K 3H5
(604) 488-3940
www.standingmanconstruction.com
Full service residential and commercial
contracting company that provides a wide range
of construction services.
Pipeline Mechanical Inc.
Mark Schulte
Box 2624, Squamish V8B 0B7
(604) 892-3010
www.pipelinemechanicalinc.com
Plumbing, gas, heating, sprinklers.
ManufaCturers
& suppliers
ESCO Limited
Arne Lorenz
1855 Kingsway Avenue,
Port Coquitlam V3C 1T1
(604) 942-7261
www.escocorp.com
ESCO is a leading global provider of highly
engineered consumable products and solutions
for challenging industrial applications in the
resources, infrastructure, power generation
and transportation markets.
JSA Sales Inc.
Bernie Hesmert
75A Clipper Street,
Coquitlam V3K 6X2
(604) 525-4774
www.jsasales.com
JSA Sales Inc. is a technically based Sales Agency
supporting Premier Plumbing , Heating and
Water Treatment.
Team Force Millwork Ltd
Peter To
1818 Triumph Street, Vancouver V5L 1K3
(604) 254-6585
Trade Contractor.
Barkman Concrete
Brian Nemez
2104 - 290 Newport Drive,
Port Moody V3H 5N2
(778) 689-7670
www.barkmanconcrete.com
Now locally based, we offer stone veneers,
site furnishings, specialty slabs & pavers to the
BC market – creating concrete solutions and
promoting Canadian economic sustainability.
Ace Electric Limited
Raveen Gounder
#5 - 8333 130th street, Surrey V3W 7X4
(604) 597-9877
www.aceelectricbc.com
Specializes in large Commercial, Concrete
Residential Projects, Wood frame condo’s and
Tenant Improvment Work.
Wholesale Blind Factory
Candace Reed
101-86 North Bend St.,
Coquitlam V3K 6H1
(604) 942-4201
www.wholesaleblindfactory.com
Most modern facility in Canada for the production
of Natural Wood and Faux Wood Blinds.
Ross Rex Industrial Painters Ltd.
Ross Rex
18653 53A Ave, Surrey V3S 9H3
(604) 888-2826
Industrial Protective Coating and Lining.
Summit Valve and Controls Inc.
Craig Bridger
8543 Commerce Court,
Burnaby V5A 4N4
(604) 422-6900
www.summitvalve.com
Over the last two decades, Summit Valve has
expanded to include complete valve, actuator
and accessory packages, as well as engineering
and startup services.
B.C. Boiler SERVICES Ltd.
Zack Krvavac
#104 - 11538 132A Street, Surrey, V3R 7S2
(604) 580-3252
wwwbcboiler.ca
Provides premiere services in the installation and
service of boilers.
allied serviCes
Westland Insurance
Jonathan Luiten
#300, 5455 - 152nd Street, Surrey V3S 5A5
(604) 543-7788
www.westland-insurance.com
Specializing in contract & surety bonding,
contractors insurance, and commercial liability
insurance.
assoCiate
Active First Aid Inc.
Heather Armitage
11743 Fern Way, Delta V4C 7M5
(604) 889-6625
www.activefirstaid.com
Providing Occupational First Aid Attendants
on short and long term basis who labour with
your crew.
RDH Building Engineering Ltd.
Kevin Ganzert
224 West 8th Avenue, Vancouver V5Y 1N5
(604) 873-1181
www.rdhbe.com/
The RDH Group of companies focus on the
integration of building science, engineering,
architecture, construction management,
and risk assessment services for the building
enclosure on new construction projects and
existing buildings.
Cansel Survey Equipment
Janet Hart
3751 Napier Street,
Burnaby V4C 3E4
(604) 205-7658
www.cansel.ca
Canada’s leading provider of survey and mapping
instruments and accessories.
Inprotect Systems Inc.
Jennifer Evers
200-20351 Duncan Way,
Langley V3A 7L3
(604) 530-9908
www.atstrafficgroup.com
Inprotect Systems Inc. is part of a group of
companies that makes up the largest distribution
of traffic control related products in Western
Canada.
PSL Partition Systems Inc.
Larry Halliday
#108 6871 Elmbridge Way,
Richmond V7C 5A4
(604) 270-8926
www.partitions.com
Creates office environments and additions that
stand the test of time, traffic and style.
AO Smith WPC Canada
Stephen Hendriks
706 Gautier Ave,
Coquitlam V3K 1R5
(778) 386-7085
www.hotwater.com
A. O. Smith has created a full line of state-ofthe-art water heaters and boilers that combine
incredible performance with higher-than-ever
energy efficiency.
The Vancouver Regional Construction Association is BC’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,
education, industry news & advocacy, and access to the Construction Job Centre.
Interested in becoming a member of the VRCA?
Join now by visiting www.vrca.bc.ca or call 604-294-3766
Photo courtesy of Scott McAlpine, BCIT
Work is underway on a $39 million expansion at BCIT. On hand for the sod turning were
(l-r) Andrew Saxton, MP for North Vancouver; Maureen Enser, chair of the BCIT board of
governors; Don Wright, president of BCIT; and Premier Gordon Campbell
Multimillion-dollar
expansion at BCIT
More than 33 new rooms being added
W
ork has started
on a $39.4 million expansion
to the Burnaby campus of
the BC Institute of Technology (BCIT).
On hand to mark the
occasion was Premier Gordon Campbell.
“This project contributes
to our immediate economic
recovery by providing jobs
now while also helping our
young people prepare for the
future,” he said.
The provincial government is contributing $22.75
million, the federal government is contributing $16.3
million and BCIT is contributing $420,000. The project
will create over 250 direct
jobs.
Called the Gateway Project, the new 73,840-squarefoot wing of BCIT’s central
quad will house 33 new
multi-use, exam and project rooms, as well as additional study areas in the
atrium. Student services
will be moved into the new
wing and it will serve as the
campus welcoming centre
for visitors and prospective
students. Lab and classroom
space will be renewed in the
other three wings and additional faculty offices will
be provided. The project
includes seismic upgrading,
the installation of additional
fire suppression sprinklers
and upgrades to electrical
service and to the campus
IT network.
During construction,
BCIT will provide students
“We are deeply
appreciative of
the contributions
made by the federal
and provincial
governments to the
capital renewal of
BCIT”
– Don Wright,
president,
BCIT
with the opportunity for
hands-on learning, and some
of the new features like the
new micro or “smart” electrical grid will be used as a
teaching tool on an ongoing
basis. This new state-of-theart electricity management
system allows power devices
to communicate through
a central system to make
more informed decisions
to optimize power distribution and transmission. Students will be able to develop
strategies to change energy
consumption.
Project manager on the
job is MHPM Project Managers, construction manager
is Dominion Construction,
and architects are Hotson
Bakker Boniface Haden and
Cornerstone Architecture.
“We are deeply appreciative of the contributions
made by the federal and provincial governments to the
capital renewal of BCIT,” said
Don Wright, president of
BCIT. “This investment will
enhance our continuing contribution to the economic,
social and environmental
prosperity of B.C.”
The new construction is
targeted to be a LEED gold
project. Some of the environmental features include:
use of enhanced daylight
capture technology, energy
efficient heat-pump technology, geo-exchange system
plus extensive heat recovery,
energy efficient-lighting and
equipment, use of recycled
material and use of a microelectrical grid. u
Trades trainer looks
for commitment first
Not quite considered a priestly
calling – but not all that far from it
By Brian Martin
W
ho knew? Plumbing , cooking ,
funeral directing
– these aren’t just jobs, they
are careers bordering on callings. And they must be taken
seriously.
That’s how Matthew Stevenson views life. Stevenson is Metro Vancouver and
Fraser Valley manager of the
Skilled Trades Employment
Program (STEP). Although
he would no doubt agree that
a skilled trade falls just a little
short of the commitment
required for the priesthood,
he nonetheless takes a very
serious approach.
He looks for commitment and motivation from
prospective trainees as the
catalyst for going forward
before he invests a lot of time
in them. “We train with a job
in mind,” he said.
STEP is financed by the
federal and provincial governments and co-ordinated
by the BC Construction
Association (BCCA). It has
offices in the Lower Mainland, Vancouver Island and
both the northern and southern Interior.
It was originally founded
by the BCCA nearly four
years ago and was then called
ISTEP (Immigrant Skilled
Trades Employment Program). Its aim was to upgrade
the skills of new immigrants
in an attempt to turn them
into the tradespeople the
construction industry at that
time very much required.
It was such a success that,
although it still operates
under the wing of the construction industry and the
BCCA, it has spread out to
embrace all 137 registered
trades in British Columbia
including non-construction
trades. It also is no longer
restricted to new immigrants. It is open to the general population under several different programs that
include STEP for Women,
STEP for Immigrants, STEP
for Aboriginals and STEP for
Small Business.
The small-business program is available to companies with fewer than 50
employees whose workers
wish to upgrade their skills.
For example, they are currently working with a firm
that employs welders who
require skills enhancement.
STEP does not actually run
training programs. STEP
funds training programs.
STEP works with an entire
plethora of training facilities and institutions located
in B.C. to place trainees in
appropriate spots.
The figures are impressive.
In the past year the Lower
Mainland offices of STEP –
Vancouver and Abbotsford –
provided services to approximately 900 people. More than
300 of those were successfully
trained and placed in employment. The remaining 700
were also served and many
got placed in employment
without training or funding.
STEP For Women has been
one of the most impressive
programs. Stevenson said
that originally STEP in the
Lower Mainland was asked
to train or place about 50
women in their first year. In
fact it placed close to 90.
“We really try to walk the
walk to help women access
the t r ades and to make
women aware of the many
options they have available.
It’s not just the traditional
trades such as carpentry,
either,” he said. “There are
137 trades to choose from.”
The construction trades
(about 25), however, still
absorb the lion’s share of the
trainees although the trend
toward non-construction
trades is increasing.
Interestingly, while a
couple of decades ago women
on a construction site were
a novelty, that is no longer
true.
“It’s not an unusual profession for women anymore,”
said Stevenson. “Women are
making great strides. More
power to them. You go to any
construction site now and
you will find women carpenters, women electricians –
even women roofers. And, of
course, women supervisors.”
Again he emphasizes that
he is looking for long-term
commitment. “We want people who are really seriously
inclined to get into a trade.
Once we determine the moti-
vation factor is there and the
commitment is there, and
they can see themselves having a career, we support them
all the way.” u
Welding is only one of
the 137 trades to which
the STEP program can
direct students
Extended Health Care
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A well-managed benefit plan is an effective tool for
recruiting and retaining motivated people. Extended
health, dental care and insurance will boost any
compensation package, especially for employees
with family responsibilities.
The BCCA Employee Benefit Program has served the construction
sector for 40 years. Because we’re run by our members, we
provide a high level of value for every dollar invested. We’re the
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Southern Interior
Vancouver Regional
Work continuing on new hospital
W
ork is continuing apace on
the new $239
million Surrey Outpatient
Hospital.
Construction of the
outpatient hospital will be
completed by April 2011; it
slated to open in July 2011. It
is a public-private partnership, with BC Healthcare
Solutions being the private
partner. The general contractor is Bird Construction
and the architect is Kasian
Architecture.
“It is great to see this
facility come to life,” said
Falcon. “When it opens, the
Surrey Outpatient Hospital will see around 450,000
outpatient visits per year
and dramatically reduce
impact on the existing
Surrey Memorial Hospital (SMH) and emergency
department.”
Dave Hayer, MLA for
Surrey-Tynehead, pointed
out that Surrey is experiencing one of the fastest growth
rates among Canadian cities.
He said it will be the largest
city in British Columbia in
a few years.
It is expected the
166,000-square-foot outpatient hospital will have
a major impact on the way
health care is delivered. It
will include room for day
surgeries, health clinics and
family medicine.
The government says
the outpatient hospital is
a major initiative for the
Fraser Health Authority
and the province to address
population and health-care
demands in the Fraser Valley.
Officials say that research
has shown efficiencies and
improvements in service
can be achieved by moving
outpatient treatment and
care out of an acute hospital
environment.
Consolidating outpatient
services can also result in
faster diagnosis, reduced
wait times and better health
outcomes.
The Surrey Outpatient
Hospital is a component
of the province’s plans to
improve access to health
care and ease congestion
at SMH. This includes a
critical-care tower at SMH
to begin construction in
2010 that will increase the
number of acute-care beds
by over 30% and will include
an emergency department
five times the size of the
existing one.
The new outpatient hospital is designed to meet
LEED gold standards. It is
part of an overall, threeyear, $14 billion capital
infr astr ucture prog r am
that includes $2.9 billion
for capital spending in the
health sector. u
Developing First Nations land can
be a very different experience
James Bryce
M
any developers are discovering that
First Nations own or control a variety of prime real
estate lands throughout the
province.
While development of
much of this land remains,
for the time being, subject
to the cumbersome land
management regime of the
Indian Act, a number of
First Nations have opted
for self-government or have
otherwise taken over administration of their own lands
under the First Nations Land
Management Act.
As a result, a variety of
First Nation land management regimes for developing reserve land and treaty
land may be encountered in
B.C. Developing this type of
land is very different from
developing land within a
First Nation’s claimed traditional territor y where
consultation and accommodation issues may arise
for infringement of aboriginal rights. This article only
a d d re s s e s d e ve l op m e n t
on reserve land and treaty
land.
Clark Wilson senior
associate James Bryce
Indian Act land
management regime
Most First Nation reserve
lands are administered by
Indian and Northern Affairs
Canada, frequently referred
to as INAC.
Although provincial and
municipal laws generally do
not apply to reserve land, First
Nation bylaws relating to zoning and the regulation of construction and use of buildings
may exist and be applicable.
When a developer proposes
to acquire a leasehold interest
in reserve land, the process
leading to the issuance of an
actual lease can be complex
and time-consuming.
With some exceptions,
reserve lands are held by the
federal Crown for the benefit
of the entire band.
It should be noted that
“band” is a term used in the
Indian Act, which identifies a
sometimes arbitrary group of
people that is not always identical to the group of people
comprising the more historically accurate First Nation.
Generally these lands
must be designated to the
Crown before they can be
leased to a developer. The
designation process involves
numerous steps, including a
band vote with very specific
requirements.
Once designated, the
Crown can lease the lands
to the developer on terms
acceptable to the Crown and
consistent with the terms of
the designation. Although the
Crown grants the lease, the
First Nation usually negotiates the business terms of the
lease with the developer.
INAC will typically require
a form of lease that may not
readily address the concerns
of the developer’s lender. Subsequent delays and setbacks
are common and the overall
process can lead to frustrating
lease negotiations for everyone involved.
Reserve land can be allotted to an individual band
member by the band (with
INAC approval).
These lands are referred
to as Certificate of Possession lands. The individual
and member typically has
the right to occupy the land
and the ability to develop the
allotted land or lease the land
to a third party.
The process for leasing
allotted lands is different. A
designation is not required,
but INAC w ill ty pically
require consent from the
individual band member and
a band council resolution. In
some cases INAC may even
require a band vote along
with other requirements.
Most reserve land is registered in the Indian Land Registry in Ottawa. The Indian
Land Registry is a document
depository and does not
offer the same safeguards as
utilized in the B.C. land title
registry system. Understanding the nature of the interest
being acquired is essential for
developers and their lenders.
First Nation land
management
In 1966 certain First Nations
and Canada entered into a
framework agreement on first
nations land management.
The framework agreement
provides the First Nation
signatories with the option
to take over the management and administration of
their lands independent of
the Indian Act, but without
otherwise becoming selfgovernment.
The land management
provisions of the Indian Act
will not apply to such lands
and INAC will not be involved
as an intermediary to review
and approve development
and grant leases. First Nations
under this regime manage
and administer their own
lands and, in our experience,
typically do so on a commercially reasonable basis.
Several First Nations in
B.C. have made use of this initiative. Generally, participat-
ing First Nations must create
a land code that replaces the
land management provisions
of the Indian Act. The code
typically includes general
rules and procedures applicable to the use and occupancy
of First Nations land, including the granting of leases and
other interests.
“The process leading to
the issuance of an actual
lease can be complex
and time-consuming”
The Framework Agreement also provides the First
Nation with the powers to
make land laws relating to
development, conservation,
protection, management, use
and occupation of the lands.
With Canada removed
as an intermediary, there is
potential for this initiative to
be more adaptive to economic
conditions and more efficient
and flexible for both First
Nations and developers.
The laws and respective
land codes are unique for
each First Nation and typically vary. In our experience,
some laws and land codes,
which are in their infancy,
have not been fully tested in
the development and financing arenas.
Self-governing
agreements
Self-government agreements
under the federal Inherent
Right to Self-Government
Policy can result in even
greater autonomy for First
Nations in the management of
their internal affairs and control over decision-making.
Self-government typically includes extensive land
management and law-making powers. For now only
the Westbank First Nation
( WFN) and the Sechelt
Indian Band have self-gov-
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ernment legislation.
The Westbank Self-Government Agreement (brought
into force by Westbank First
Nation Self-Government Act)
provides WFN with jurisdiction over most matters previously regulated under the
Indian Act including land
management.
WFN adopted a constitution that sets out the structure and duties of the WFN
government. The constitution
includes land rules which
set out principles, rules and
administrative structures by
virtue of which WFN exercises its authority and jurisdiction over its lands.
Acquisition of an interest
in these lands and their development is subject to WFN
laws and certain other applicable laws. WFN has enacted
laws specifically relating to
subdivision, development and
servicing, building, allotment
and land use.
The band maintains a separate land office in West Kelowna for WFN land, which
is the only portal for filing
WFN documents in the SelfGovernment First Nations
Land Registry in Ottawa.
Sophisticated First Nations
self-government in action is
evident at the WFN website
(www.wfn.ca).
Self-government initiatives will likely result in a
variety of governance models given the diversity among
First Nations and land management issues.
Modern-day treaties
Modern-day treaties will
potentially create even more
land management regimes in
B.C.
The Nisga’a final agreement is an example. Nisga’a
lands are subject to Nisga’a
legislation. There are several
ownership and management
regimes in place within the
Nisga’a lands. For example,
on granted village lands, one
of four recognized Nisga’a vilSee Lesson, C11
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Provincial View
Manley McLachlan
“E
gregious behaviour”: Behaviour seen as “an
affront to the integrity and
business efficacy of the tendering process.” So said the
Supreme Court of Canada
in its reasons for judgment in
the recent Tercon Contractors
Ltd. appeal. It was referring to
the actions of the B.C. Ministry of Transportation and
Highways during the tendering phase of a public construction project.
The case involved a request
for proposals for the construction of a highway. Only six
previously qualified bidders
were allowed to bid. Despite
having clearly laid out the
rules of engagement, the ministry allowed and ultimately
awarded the contract to a bidder that was not one of those
qualified six.
The ministry had planned
to rely on its cleverly drafted
exclusion clause to escape
liability for this tendering transgression. The plan
almost worked. Fortunately,
it did not. In a 5-4 decision,
the Supreme Court gave the
win to Tercon.
The case was an important one for the construction
industry. Construction lawyers are already busy “commenting” and forming their
Lesson: Gain insights
From Developing, C10
lages has ownership of land
and the ability to enact laws
with respect to land use.
For designated village
lands the Nisga’a Nation owns
the lands but the particular
Nisga’a village has the authority to enact laws with respect
to the land – both likely working together for the land use
and management regime.
There are even other specific types of land designations including exceptions to
village lands, public lands and
private lands. All this is to say
there are several regimes and
some early due diligence is
required of developers in this
regard.
The Tsawwassen First
Nation (TFN) treaty is a more
recent example of a modern
treaty. TFN has authority to
enact laws concerning land,
land use and development.
TFN has enacted its own land
act, which establishes a framework for administration of
Tsawwassen lands, including
a process for leasing lands.
Pre-treaty certificate of
possession lands is converted
into Tsawwassen fee simple
lands under the treaty. Some
of the rules for Tsawwassen fee
simple lands are different than
those for the general Tsawwassen lands.
All development w ill
need to comply with the
TFN Land Use Planning and
Development Act. This act
contains the land use planning and zoning principles
and the requirements that a
development must meet for
approval.
Other First Nations are
currently well-advanced in the
modern-day treaty process.
As more and more First
Nations in B.C. take over
management of their lands,
abundant opportunities will
no doubt be presented to
the development community. Developers who gain an
early understanding of First
Nations geography and land
management regimes will
have an advantage. u
arguments for and against the
future use of exclusion clauses.
Some will focus on the majority decision, others will find
reasons to support the dissent, and I have little doubt
that there will be a significant
amount of billable hours put
in on creating the next great,
bullet-proof exclusion clause
for use by anyone with pockets
deep enough to pay.
They are all too brilliant
for me. I am no lawyer and
I would not presume to try
to interpret the finer points
of law discoursed upon by
the very capable and intelligent Supreme Court justices.
What I do know, however, is
there are some fundamental
truths to the public construction tendering process that we
would all be wise to pay attention to if we want to promote
the economy of this province
and protect the taxpayers of
British Columbia. As a Prairie
boy, raised on common sense,
here is my take on it.
No matter how sophisticated a contractor might be,
they will never be equal to the
power wielded by the government. However, while government can easily afford to hire
lawyers to draft amazingly
clear and concise exclusion
clauses that might save it from
losing a few lawsuits when it
acts egregiously – although a
failsafe one hasn’t been discovered yet – should it? Why
is it important to have a public
procurement process that is
fair, open and transparent?
I suggest that there are
at least three answers to that
question and they involve the
following: a healthy competitive marketplace, taxpayer dollars and squeaky-clean elected
officials.
“At the end of the day,
when things go wrong, it
will ultimately be Mr. Deep
Pockets who will pay – and
who has deeper pockets
than the taxpayer?”
Maintaining a competitive
marketplace is essential to our
economy. The construction
industry, in particular, thrives
on competition. An unfair
procurement process will sour
relations in areas where competition is sought as a means
to partnership.
Without a clean and fair
tendering process, contractors
will not feel comfortable bidding on public work, especially
the smaller contractors (about
90% of our industry in B.C.)
who likely don’t have access
to sophisticated legal advice.
Fewer bidders mean higher
prices. The lack of opportunity to compete leads to a
contraction in the industry
and the potential loss of small
to medium-sized companies
who, quite frankly, are huge
contributors to employment
and training in this province.
The construction industry is
one of the cornerstones of our
economy. Ultimately, running
a robust and fair tendering
process is the key to maintaining a strong sector.
Public agencies operate
on taxpayers’ dollars, so we all
have a vested interest in achieving the best price through
healthy competition. It is also
in the public’s best interest
that unnecessary litigation be
avoided, and that risk is dealt
with in such a manner as will
best protect the public. There
is a need to be transparent
about the tendering, evaluation and awarding processes
and to stick to fair dealing so
that no one can shout “foul”
post-contract award.
Litigation is disruptive and
expensive for all concerned,
and it is worth remembering
that people only challenge if
they are unhappy, not only
with the outcome, but with
the process itself. If a procurement phase is well-run, fair,
clean and efficient, then most
bidders will be satisfied and
content with walking away
without challenge.
Keep in mind, at the end of
the day, when things go wrong,
it will ultimately be Mr. Deep
Pockets who will pay – and
who has deeper pockets than
the taxpayer?
Finally, politicians would
do well to remember the old
adage that those who ignore
history are doomed to repeat
it. Capital expenditure by governments presents a source
of fertile ground for corruption. There are countless
examples around the world
of governments losing the
support of the electorate due
to perceived, nevermind real,
backroom dealing in the tendering process. Having a truly
open and transparent process
is essential to ensuring that
such a taint will not stain their
reputation.
Construction litigation is
not going to disappear any
time soon, but at the very
least, we should insist that
our public officials do their
best to avoid expensive lawsuits and support a competitive marketplace on behalf of
the taxpaying industry and the
taxpaying consumers. Fair and
open deals are not too much
to ask for.
My final comment: learn
the lesson provided by the
Tercon case, which is, in my
humble opinion: place not
your faith in lawyers’ drafting abilities, just do the right
thing. ◆
Manley McLachlan is president of the British Columbia
Construction Association. His
office is in Victoria.
are coming together as one dedicated full service
safety organization for the construction industry.
James Bryce is a senior associate at Clark Wilson LLP, one
of B.C.’s leading business law
firms. He can be reached at
[email protected] or 604-8917768.
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Clean energy leads major projects list
A
record number of
major construction
projects are proposed
in British Columbia. Nine of
the top-10 valued projects
focus on clean energy according to Iain Black, minister of
small business, technology and
economic development.
The latest issue of the province’s Major Projects Inventory,
which covers the fourth quarter
of 2009, shows the number of
proposed major construction
projects has risen to a record
high of 516. The value of the
projects planned or underway
is $187 billion, near the all-time
high of $189 billion.
“This latest survey shows
that investors are highly confident in British Columbia’s
future and are clearly embracing the drive toward a new,
greener economy,” said Black.
“It’s significant that so many of
the largest projects proposed
involve renewable energy, an
area where British Columbia
is a world leader.”
Among the clean-energy
projects planned or underway across the province are
the $1.2 billion Rocky Creek
Wind Energy Project, the
$900 million Machmell River
Hydropower Project in Campbell River and the $222 million
Upper Lillooet River Hydroelectric Project.
Since 2005 the number of
projects has risen by 128% in
the Cariboo, 95% in the northwest and by 63% in both the
Thompson Okanagan and
Nechako regions.
According to the Major
Projects Inventory, between
October and December of
2009:
•882 major capital projects
worth about $187.1 billion
were planned or underway
across B.C. The number of
projects has nearly tripled since
2001 and their value has more
than quadrupled;
•20 major projects with
an estimated value of $870
million started construction.
The largest of these was the
$200 million Channel Ridge
Village on Salt Spring Island;
•the capital cost of all major
projects under construction
in B.C. was estimated at $60.7
billion; and
•33 major projects were completed with an estimated capital cost of about $4.1 billion
including the $1 billion Vancouver Olympic Village.
There were 516 projects
proposed during the quarter.
This is the highest level ever
recorded. Among the largest
of them were:
•Rocky Creek Wind Energy
project in Tumbler Ridge ($1.2
billion);
•Machmell River Hydropower
project in Campbell River
($900 million);
•Metro Vancouver Waste-toEnergy incineration facility
($500 million);
•Upper Lillooet River Hydroelectric project in Pemberton
($222 million);
•Bronson Slope Hydropower
project in the Stewart Region
($216 million);
•Tzoonie River Hydroelectric
National View
Michael Atkinson
T
he Canadian Construction Association (CCA) was very
pleased to see the federal
government’s budget follow
through on the second year
of the infrastructure stimulus
measures from its Economic
Action Plan.
The federal government
has recognized the importance of infrastructure and
maintained its investment in
development and renewal.
The much-needed spending
announced last year provided
stimulus to the Canadian
economy through investments
in infrastructure, college infrastructure and green technology, as well as new incentives
to help in retraining Canada’s
unemployed.
The infrastructure programs in Budget 2009 have
been instrumental in the rise
of employment in Canada’s
construction industry since
August. These important
investments made by federal,
provincial and municipal
governments have not only
been a necessary source of
stimulus but are long overdue investments in the modernization of our nation’s
infrastructure and will be
critical to our future global
competitiveness.
The construction industry
is, however, concerned about
the impact an abrupt withdrawal of funding from these
stimulus programs would have
on construction employment
and economic activity.
We believe a tapered
withdrawal of stimulus funding poses less of a threat to
Canada’s economic recovery
than the currently proposed
deadline on these programs.
Canada needs to continue to
invest in its public infrastructure not simply because it
stimulates the economy in the
short term but because it is an
investment in the very foundation of our nation’s future.
It ensures Canada’s ability to
remain competitive on the
international stage, increase
productivity and build upon
our economic and social
prosperity.
ROOFING CONTRACTORS
ASSOCIATION OF
BRITISH COLUMBIA
project in Sechelt ($186
million);
•Lower Wood River Hydropower project in Mica ($144
million);
•Husky River Hydroelectric
project in Pemberton ($138
million); and
•Gun Creek Hydroelectric
project in Pemberton ($108
million).
The Major Projects Inventory also features 87 projects
that are or are aiming to be
certified under a recognized
green building rating system
such as LEED or Green Globes.
They include the $32 million
Thompson Rivers University
Library Commons and House
of Learning.
Published quarterly by the
Ministry of Small Business,
Technology and Economic
Development, the Major Projects Inventory lists all major
projects that are proposed,
planned or underway in British
Columbia. These are projects
with a capital cost of at least
$20 million within the Lower
Mainland and projects valued
at $15 million or more in the
rest of the province. u
While the CCA is pleased
to see employment insurance
(EI) premiums frozen for
2010, we are concerned about
the future impact significant
increases in EI premiums will
have on employment.
In other news, the CCA
held a national Non-residential Construction Industry
Summit in January. It aimed
to identify major trends or
developments that will impact
partner in achieving sustainable development.
•Public-private partnerships (P3s): Firms must have
the ability and capacity to
participate successfully on P3
projects.
•Increased competition:
Canadian firms must have
the ability to compete and
work with large and/or global
firms.
•New technology: Canadian
construction firms must keep
up to date on new technologies and the efficiencies they
can bring.
Canada’s construction
industry employs close to 1.2
million men and women and
accounts for approximately
6% of Canada’s annual GDP.
It buys goods and services in
every region of the country
and in every sector of the
economy. As such, any significant increase in construction
activity produces thousands of
spin-off jobs in other sectors
– steel, engineering, forestry,
autos, banking and retail –
which is why it remains the
barometer of our national
economic health. ◆
“Tapered withdrawal of
stimulus funding poses
less of a threat to Canada’s
economic recovery”
the non-residential sector. It
attracted more than 110 participants from CCA partner
associations from across Canada. Among items it identified
were:
•Changing workforce: A top
priority must continue to be
labour supply, training and
retention.
•Recent economic downturn:
Governments must create an
economic climate that encourages and sustains private-sector investment in commercial
buildings and industrial facilities while not losing sight of
the need to invest in public
infrastructure.
•Awareness of environmental issues: The industry must
ensure it continues to be a key
Michael Atkinson is president
of the Canadian Construction
Association located in Ottawa.
The Canadian Construction
Association is the voice of the
national non-residential construction industry. It represents
more than 17,000 members in
an integrated structure of some
70 local and provincial construction associations.
Legal Specs
Streu
Hirst
M
The first stage of that analysis is to determine whether
the exclusion clause applies
to the situation in question. If
the clause does apply, the second stage is to then determine
whether the exclusion clause
is valid in the sense that it is
not “unconscionable.”
If the exclusion clause
applies and if it is valid, the
third and final stage is to
determine whether there is
an overriding public policy
reason that would compel a
court to refuse to enforce the
clause.
“The problem with such
exclusion clauses is
they undermine the very
essence of tendering law”
L
Brian Martin
ife would be nicer if only
problems would disappear when the money
available disappeared. Nice. But
not always possible.
That’s the way it is working with the old problem of
leaky condos. A few months
ago, the provincial government announced it would no
longer provide interest-free
loans for condo owners faced
with the costs of remediation.
The interest-free loans were
backed by $750 levies on every
new residential unit built. With
the recession, however, came a
dramatic drop in the number
of new units, which meant a
similar dramatic drop in the
dollars available to the “leaky
condo account.” Last July the
program ended.
Housing Minister Rich
Coleman said at the time that
all leaky buildings should have
already been identified and
remedied. While that is a good
theory, it is not factual.
Pierre Gallant is a principal and architect with Morison
Hershfield, a large Vancouver
engineering company. Joel
Schwartz is the president of
JRD Engineering and past
president of the BC Building Envelope Council. The
two men both say there are
still many condominiums out
there that need remediation –
sometimes very major remediation. Gallant points out that
his opinion is just a very rough
guess. He estimates, however,
that as many as one-third of
the area’s condo inventory still
requires remediation.
Sometimes this is because
problems show up slowly. This
is more common in concrete
buildings than in wood-frame
buildings. In other cases, Gallant says, it is a matter of condo
owners “being in denial” or
simply not being willing to
spend the money. The problem
can become severe when strata
councils are dealing with absentee landlords who may be more
interested in short-term returns
than the long-term future of the
building.
In situations like this, there
is a solution, however. While it
takes a 75% “yes” vote by condo
owners to authorize repairs, the
repairs can be forced on a strata
corporation by the courts. If
there is an engineer’s report
outlining the need for reme-
diation, and the vote falls short
of 75%, any condo owner can
appeal to the courts and, under
provincial legislation controlling strata corporations, the
courts can order the repairs be
done and appoint an administrator to oversee them. This,
says Gallant, is not an uncommon event.
Schwartz points out that the
remediation of leaky condos is
not an optional item. It is something that absolutely must be
done. If left undone, the problems will simply become worse
and worse and the equity that
owners have in their units will
continue to erode. It is a point
Gallant also underscored. He
said it’s very sad when people
are in denial about a problem
that is bound to become worse
as time goes by.
Both men are aware of tragic
cases where the cost of remediation has caused owners to lose
their homes and sometimes
face personal bankruptcy.
The interest-free program,
they agree, was a major help. Its
demise, though, has not caused
the remediation industry to
collapse by any means. It has
slowed somewhat as the cost of
See Required, C15
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Somewhat surprisingly,
five of the nine judges of the
Supreme Court found that the
exclusion clause used by the
province, which barred claims
for compensation “as a result
of participating” in the tendering process, did not, when
interpreted “properly,” exclude
Tercon’s claim for damages. In
other words, the clause failed
the first stage of the three-part
test enunciated by the court.
The majority held that the
exclusion clause when interpreted “in harmony” with the
rest of the RFP in issue, and in
light of the commercial context of the tendering process,
did not exclude the damages
sought.
Essentially, the court found
that since the winning bidder
was not an eligible bidder, the
unfairness complained of by
Tercon was not something
that arose as a result of Tercon’s participation in the RFP,
but from something outside
of that RFP process.
If you find this interpretation confusing, you are in
good company.
The four judges comprising the minority found that
the clause was “clear and
unambiguous” and that no
legal ground or rule of law
permitted the court to override the freedom of the parties
to a contract with respect to
this term, or to relieve Tercon
against its operation.
The minority judges concluded that the language was
clear and the strained interpretation the majority judges
adopted was an “an artificial
interpretation in order, indirectly and obliquely, to avoid
the impact of what may seem
[after the fact] to have been
an unfair and unreasonable
clause.”
Contractors across Canada celebrated this decision
as support for the integrity of
the tender process. However,
the most likely result of this
decision will be the further
encouragement of litigation
over the appropriate interpretation of exclusion clauses
used in the procurement context. While owners will likely
seek to broaden the scope of
their exclusion clauses, the
door will remain wide open
to unhappy bidders to challenge even the most apparently straightforward interpretations of such exclusion
clauses.
As a result, there is
little to celebrate in the
Supreme Court’s decision in
Tercon. ◆
Money dries up but the problems remain
CONTRACTOR SUPPLIES
any people hoped
that the Supreme
Court’s decision
in Tercon would provide some
clarity to the muddled law of
tender. Unfortunately, such
hopes were dashed when this
long-awaited decision was
finally delivered.
Most readers will recall
that in Tercon Contractors
Ltd. vs. British Columbia
(Ministry of Transportation and Highways), the
Supreme Court was asked to
examine the enforceability of
“no claims” clauses in the context of a public procurement
process.
At issue was the clause in
a request for proposals that
purported to exclude any
claims for damages by bidders,
“no Proponent shall have any
claim for compensation of any
kind whatsoever as a result of
participating in this RFP.”
The problem with such
exclusion clauses is that they
undermine the very essence
of tendering law, which
imposes legal obligations on
those involved in the tendering process. If an owner can
simply insert an exclusion
clause and avoid liability for
the breach of those legal obligations, tendering law loses
all its teeth.
As the Supreme Court
put it, “the appeal thus brings
into conflict the public policy
that favours a fair, open and
transparent bid process, and
the freedom of contract of
sophisticated and experienced
parties in a commercial environment to craft their own
contractual affairs.”
After nearly a year of deliberations, the court held that
the use of exclusion clauses in
the public procurement context was permitted and the
court laid out the following
three-part analysis to be used
to determine the enforceability of such exclusion clauses.
Leaky condos still
causing trouble
Constructive
Comment
T
he late great Peter
Gzowski once held
a contest to come up
with the Canadian equivalent of “as American as apple
pie.” After weeks of reading
the contenders, the winner
was announced: “As Canadian as possible under the
circumstances.”
During the Olympics, we
saw that it is, in fact, possible
to be as Canadian as possible
under the circumstances.
The outpouring of pride and
exuberance transformed our
streets, restaurants, bars and
sporting facilities into a sea of
red, to the point it was impossible to not get caught up in the
passion. I caught myself having
to buy a Canada toque when
my lack of red made me most
conspicuous.
All Canadians have every
right to take pride in hosting
a phenomenally successful
Winter Olympics. The construction industry, I would
suggest, is entitled to hold
their heads especially high, as
the facilities that were built to
host the sporting events, the
new hotels that welcomed the
visitors, the Olympic Village
that was home to thousands
of athletes and the Vancouver Convention Centre that
showcased our wonderful
city all provided testament to
the quality and workmanship
of Vancouver’s construction
industry.
After the downturn in the
economy that hit our industry hard, the celebration surrounding the Olympics was
most welcome. It provided
an opportunity to once again
take pride in our industry and
in Canada and to celebrate
in an unabashed manner.
While attending a few events, I
noticed a number of those blue
jackets that proudly proclaimed
the wearer as a member of the
“2010 Construction Team.”
While there was the occasional glitch, the buildings and
sports structures performed
extraordinarily well. To have
such stunning facilities built
on time, on schedule and well
before the Games spoke highly
of the team at VANOC as well
as the contractors and workers
who made them possible.
The legacies of the Olympics are many. Certainly, the
facilities built to host the
Olympic Games were recog-
Keith Sashaw
nized as quality projects during
this year’s Vancouver Regional
(VRCA) Awards of Excellence
program.
The Vancouver Convention
Centre expansion project was
recognized with a prestigious
Landmark Award, the Richmond Olympic Oval received
six silver and gold awards, the
Canada Line project received
four silver and gold awards,
and the Whistler Olympic Park
ski jump and the Whistler High
Performance Athletes Centre
each received awards.
The VRCA was proud
to also have played a role in
training more than 100 individuals and working with our
members placing more than
50 graduates of a training program into employment in the
“After the gloom of
2009, the 2010 Olympics
provided a renewed
sense of pride”
construction industry, changing these people’s lives.
After the gloom of 2009,
the 2010 Olympics provided
a renewed sense of pride and
optimism. It was almost as if
the weather itself was promoting a more positive outlook.
In looking at the building permit numbers and the
construction employment
statistics, it does seem that we
are through the worst of the
downturn. We are beginning
to see a recovery in the residential sector of the construction
industry and are hopeful that
the recovery will take a firmer
hold in the non-residential sector by the end of 2010 or early
2011. There can be no doubt,
however, that whenever the
recovery comes, the future
for the construction industry
is looking brighter as a result
of a great Olympics, as investors and visitors alike had the
opportunity to see what a great
city we live in. ◆
Keith Sashaw is president of the
Vancouver Regional Construction Association.
Partnership construction projects
are available to all contractors
They are not just for a few of the “big boys”
Brian Martin
P
ublic-private partnerships are not
reserved for a handful of very large general or
trade contractors.
That was the word from
Larry Blain recently when
he spoke to the Vancouver
Regional Construction Association (VRCA). It is, however, a criticism that is often
raised within the construction
industry.
To counter it, Blaine, who
is the chief executive officer of
Partnerships BC, pointed to
the Canada Line rapid transit
line between the waterfront
and Vancouver International
Airport. Although it was built
by a large public-private partnership it involves more than
700 local subcontractors, he
said.
He also issued an open
invitation for local contractors to contact or visit him at
his Vancouver office to explore
ways they can seek to become
Our construction and infrastructure lawyers have extensive experience in
providing clients with timely and innovative legal services about:
ff
Construction
and consultant
agreements
Public private partnerships (3Ps)
ff
ff
Procurement, bidding and tendering
ff
Project and construction management
ff
Insurance
and bonding issues
ff
Claims avoidance and management
ff
Dispute resolution including
mediation, arbitration and litigation
For more information, please contact Owen D. Pawson
Chair of Miller Thomson’s Construction and Infrastructure Group
604.643.1254 | [email protected] | www.millerthomson.com
Robson Court, 1000 – 840 Howe Street, Vancouver BC V6Z 2M1
vancouver toronto calgary edmonton london kitchener-waterloo guelph markham montréal
The South Fraser Perimeter Road will be a public-private partnership. Partnerships BC
insists there is room for medium-sized as well as large firms in the world of P3s
involved.
Partnerships BC does not
actually put deals together or
award public-private partnerships, or “P3s,” as they
are commonly called. Rather
it will look at a project and
advise the provincial government whether it is a likely candidate to be a P3.
It is a system that has been
evolving and changing over
the past decade. One of the
changes aims straight and
true at budgeting. Initially
the government would put a
project out for proposals from
private partnerships. It would
then pick from the ones who
answered and go with the price
they offered. Now the government determines the price in
advance and basically asks the
industry, “What can we get for
this amount of money.” This
means the cost of the building,
bridge or highway is firm right
from the start and there is zero
chance of cost overruns – long
the bane of large government
projects.
“With this structure, there
is no way you can have a cost
overrun,” Blaine told the
VRCA members.
This was the system
used in building the Seato-Sky Highway and it has
since been incorporated in
building construction.
“We are starting to use the
concept in the health structure
now with very good results,”
Blaine said.
“It has taken a couple of
projects for everybody to sort
of realize we mean business.
When we define this line you
cannot go over it. You will have
to adjust the scope or whatever
to get under it.”
At the base of P3s is the
transfer of risk from the government to the private partners. Blaine pointed to two
large projects that did not
involve private partners and
have come back to bite taxpayers. One is the Athletes’ Village
in Vancouver and the second
is the billion-dollar upgrade to
Metro Vancouver’s Seymour
water reservoir system. Both
were well over budget.
Public-private partnerships also had to adjust to the
financial situation, which hit
worldwide just over a year ago.
Extremely tight money and
high interest rates slammed
the affordability of many projects. The manoeuvres government adopted saw private proponents taking larger equity
in projects – often going from
10% to 20%. Some P3s bit
the dust altogether. The best
example is the replacement
of the Port Mann Bridge and
the widening of Highway 1. In
the end the financing proved
impossible as a P3, and the
government proceeded as
a standard construction
contract.
The financial scene has
stabilized considerably since
then. Among P3s currently in
the works are a planned major
expansion to Surrey Memorial Hospital and the South
Fraser Perimeter Road.
There is a further advantage to public-private partnerships that is not immediately
obvious. It is deferred maintenance. Even a casual survey of
traditional government buildings will regularly show the
lack of adequate maintenance
budgets. Politicians don’t get a
lot of publicity by announcing repairs to a furnace – so
maintenance is forever getting
elbowed out of government
budgets.
This is taken care of with a
P3. The same consortium that
builds a facility is responsible
for maintaining it – normally
for 30 years. It is to the private
partner’s advantage to ensure
a building, a road or a bridge
is well maintained. Looking
after a facility properly is a lot
less expensive than replacing
it. u
Business in Vancouver
VRCA News Supplement
April 20–26, 2010
Around the
Industry
A
pparently, political
correctness is not
as highly valued in
China as it is in Canada. The
following story comes from
the BBC: An official in Shijiazhuang, China, told Agence
France-Presse in December
that the city’s new “womenonly” parking lot was designed
to meet females’ “strong sense
of colour and different sense
of distance.” The spaces are
three feet wider than regular
spaces and painted pink and
purple. Also, attendants have
been trained to “guide” women
into parking spaces.
This little tidbit was sent
to me by someone who heard
of my parking woes at the
“female-only” parking lot at the
University of the Fraser Valley in Abbotsford. I had never
seen a female-only parking lot
before. It was summer. I was
there as part of the Vancouver
Regional Construction Association’s awards review team.
We were to take a look at the
new arena across the street. The
lot was completely empty. Nevertheless, being the law abiding
critter that I am, I decided to
leave and park somewhere else.
I threw my red van into reverse
and flew back – smack into the
tiny female-driven car that had
arrived while I studied the sign.
We were the only two people in
the acres of parking. She was
a very pleasant young lady.
BrIAn MArtIn
Pleasant, but firm. My gosh, it
costs a lot to get rid of a few
dents these days, doesn’t it?
Million of dollars for
training
The new $39 million building
that is under construction at
BCIT is only one of 40 projects
at post-secondary institutions
across the province that are
being funded through a joint
federal-provincial investment
of $497 million. The total
investment in these projects
is $519 million when contributions from the institutions
themselves are added in.
Top honours for concert
Concer t Proper ties h a s
received two Grand Georgie
Awards from the B.C. Chapter
of the Canadian Home Builders’ Association.
For the second year in a
row, Concert received the
Multi-Family Home Builder
Customer Choice Award. It
is based on third-party surveys administered to Concert
homebuyers. The company
was also named Multi-Family Home Builder of the
Year (Large Volume). This
is the fourth time Concert
has received this prestigious
award.
“We are extremely proud to
have once again received two
of the home-building industry’s top awards,” said Brian
McCauley, president of Concert Properties.
Awards deadline nearing
On the subject of the VRCA
Awards, members of the Vancouver Regional Construction
Association are reminded that
April 30 is the deadline for
entries for this year’s Awards
of Excellence competition.
Entry forms have been sent
out. If you haven’t received
yours, contact the VRCA
offices at 604-294-3766 and
staff will be pleased to take
care of you.
The VRCA awards are now
in their 22nd year and represent by far the largest construction awards program in
Canada. They are also highly
valued as a marketing tool – so
get busy and fill those forms
out.
Road-builders directors
The B.C. Road Builders and
Heavy Construction Association announced its new board
of directors this past winter
– we’re a little slow catching
up to them.
The chair is Mike Jacobs,
Emil Anderson Construction; past chair, Steve Drummond, Capilano Highway
Services; vice-chair, Doug
Bjornson, Mainroad Group;
Homeowner protection
changes are coming
Required: Rain shields
A
borrowing money has increased
with the demise of the program.
On the other hand, the general
slowdown in the construction
industry has seen costs also
drop – a plus for the owners of
leaky condos.
The technology for dealing
with leaky condos has changed
s part of Victoria’s review
of Crown corporations
the province transferred a
number of key responsibilities
under the Homeowner Protection Act as of April 1.
The changes include:
• transferring the residential
builder and building envelope
renovator licensing, ownerbuilder authorization and
the research and education
responsibilities to BC Housing; and
• transferring the adminis-
tration of the reconstruction
program to the Ministry of
Finance. The Homeowners
Protection Office (HPO)
stopped accepting new applications for this program last
July.
As of June 30, the provincial sales tax relief grant
for owners of homes with
completed building envelope
repairs will be terminated in
conjunction with the introduction of the harmonized
sales tax (HST).
Requirements for licensing,
owner-builder authorizations
and home warranty insurance under the Homeowner
Protection Act will remain
unchanged.
The HPO website will continue to provide online licensing, new home registration,
owner-builder authorization,
Building Smart seminar registration and research and
education information for
the residential construction
industry and consumers. ◆
From Leaky, C13
over the years, but not dramatically. The most important
change actually involved the
“rediscovery” of traditional
rain-shield technology. Basically, this is a double exterior
wall that lets any water that
manages to get in to run to the
bottom and escape. It was used
for decades but somehow got
C15
secretary/treasurer, David
Beck, Wilson M Beck Insurance Services; construction
chair, Scott Jacob, Jacob Bros
Construction; construction
director, Frank Margitan,
Peter Kiewit Sons Co.; paving director, Paul Simpson,
Winvan Paving; maintenance
chair, Robert Hasell, Emil
Anderson Maintenance Co.;
maintenance director, Kevin
Higgins, Yellowhead Road
and Bridge; maintenance
director, Larry Nelson, Interior Roads Ltd.; service and
supply chair, Jim Sced, TRG
Group Benefits and Pensions;
Canadian Construction Association representative, Frank
Rizzardo, Emcon Services
Inc.; and Construction Safety
Network representative, Tom
Johnson, JJM Group. ◆
Those wishing to submit news
items from their companies or
industry associations are welcome to contact Brian Martin
at [email protected].
lost in the 1980s – particularly
in wood-frame apartments. It
was always used in the majority of brick-faced buildings. It is
back now and is the law.
Gallant points out there
have also been advances by
manufacturers – particularly
window manufacturers – often
encouraged by the new “green”
building code. At the end of
story, however, it all comes
down to the old adage: “You can
pay now or you can pay later.
But you will pay.” ◆
Teams shortlisted for major hospital
T
hree qualified teams
have been shortlisted
to participate in the next
stage of the competition to
design, build, finance and
maintain the new emergency
department and critical-care
tower at Surrey Memorial
Hospital.
The teams, including the
general contractor and architectural participants, are: BC
Healthcare Solutions (Bird
Construction and Kasian
Architects); ISL Health (Lark
Group and Cannon Design);
and Integrated Team Solutions (EllisDon along with
CEI Architecture and Parkin
Architects).
The shortlisted teams will
now be invited to respond
to the request for proposal
(RFP) stage. At the conclusion
of the RFP stage, a preferred
component will be selected
and negotiations to reach a
final agreement will begin.
Negotiations are expected to
conclude in 2010.
The government says the
expansion at Surrey Memorial will represent the largest
capital investment in the history of health care in British
Columbia. ◆
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Construction - Vancouver Regional Construction Association

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