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On-Site March 2016

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MARCH 2016

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CONS TRUC TION SO

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PG.3 4

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OF AGGREGATE RECYCLING PG.29

MOBILE CRANES:

HOW ABOUT A LIFT? PG.24

LEED

CaGBC’s president and CEO Thomas Mueller

UPDATE

WHY CANADA LEADS IN GREEN CONSTRUCTION PG 18

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18

VOLUME 61, NO.2 / MARCH 2016

COVER STORY 18 LEED UPDATE Q&A with Thomas Mueller, president of CaGBC. He reveals how LEED grew so quickly in Canada, what its current challenges are, and where it goes from here.

DEPARTMENTS 7 Comment The smelliest hazard of all

10 News Industry news

16 Construction Stats

24

The latest news on construction activity and employment

COLUMNS 34 Software

29

Green construction – mastering the art of keeping track

36 Risk Never pass on the opportunity to look yourself in the mirror

38 Contractors and the Law When is a contractor’s work a compensable “extra”?

24

29

After a couple of slow years, mobile crane OEMs and rental agencies are excited at the prospect of increased infrastructure investment on both sides of the border.

Efforts to launch a certification program for aggregate recycling in Ontario stalled last month when partner associations and producers raised concerns at the 11th hour.

HOW ABOUT A LIFT?

THREE Rs OF AGGREGATE RECYCLING

37

Index of Advertisers

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COMMENT

The smelliest hazard of all

P

Get the latest construction news! Follow us on Twitter @OnSiteMag

otential danger lurks around every corner on the jobsite. Whether it is working at height, in a confined space, or even the seemingly simple chore of navigating heavy equipment on foot. It is for this reason that contractors spend millions every year on safety gear, consultants and training. Well, according to the Ontario Ministry of Labour, they have one more, very stinky, hazard to consider: portable toilets and clean-up facilities. Known by all kinds of ‘cheeky’ names: Porto-Potties, Johnny-on-the-Spot, Doodie Calls, Plop Jon; these portable toilets are a major cause of the spread of disease to construction workers and their families. Although rarely pleasant, most onsite toilet and cleanup facilities are perfectly safe. It is the ones that are not appropriate for the site, poorly maintained, or overused that cause problems. Construction workers are at risk of contracting a variety of nasty diseases, including: Legionella, Moulds and Fungi, E.Coli, Salmonella, Listeria, Hepatitis A and Novovirus. The ministry recently released a video about how to protect workers from the hazards of poor hygiene and the spread of infectious disease on construction sites. “We want to raise awareness amongst suppliers, constructors, employers, supervisors and workers about the hazards of poor hygiene,” said Kim MacLaughlin, occupational health and safety inspector, with the Ministry of Labour. Keeping workers safe on the job is priority one, but contractors need to be careful not to overlook the importance of appropriate toilet and cleanup facilities. Inspectors, such as MacLaughlin, are looking for compliance with sections 29 and 30 of

the construction regulation in Ontario. This includes providing adequate toilet facilities relevant to the number of workers, arranging for facilities to be in place before work begins, and making sure they are located at the appropriate distance from where the work takes place. Although it is the Ontario Ministry of Labour heading up this awareness campaign, it is safe to assume that similar dangers lurk in portable toilets across the country. Really, the core problem isn’t so much the toilets themselves, but the lack of cleanup facilities. Having a place to “go” is a clear priority. Having a place to wash your hands after, meh not so much. It’s the same message schools are delivering to our children during cold and flu season: hand washing makes the single biggest difference on the jobsite to prevent contracting disease. “Where workers are handling corrosive, poisonous or other substances that may endanger their health, under section 30, it is required that they have running water, soap and towels to cleanup,” according to the ministry. There’s a lot more detailed information that owners and supervisors should be aware of surrounding jobsite facilities. Check out the video for yourself on our website at www.on-sitemag.com. At the end of the day, don’t skimp on the number of portable toilets you rent, or the hand washing stations you set up. Your people, and their health are worth investing in.

on-sitemag.com / 7


CONTRIBUTORS

MEET OUR CONTRIBUTORS FOR THIS ISSUE JIM BARNES / Contributing editor On LEED “Since the Canadian Green Building Council began operating in 2002 as an offshoot of the US Green Building Council, the Leadership in Energy and Environmental Design program (LEED) has led Canada to a prominent position internationally in environmental construction. We interviewed Thomas Mueller, a founding director of CaGBC as well as its president and CEO, on how LEED grew so quickly in Canada, what its current challenges are and where it goes from here.”

www.on-sitemag.com / Fax: 416-510-5140

PUBLISHER | Peter Leonard (416) 510-6847 PLeonard@on-sitemag.com EDITOR/EDITORIAL DIRECTOR | Corinne Lynds (416) 510-6821 CLynds@on-sitemag.com CONTRIBUTING EDITOR | James A. Barnes MEDIA DESIGNER | Gerry Wiebe gwiebe@annexweb.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@annexbizmedia.com ACCOUNT COORDINATOR | Cheryl Fisher (416) 510-5194 CFisher@annexbizmedia.com

DAVID BOWCOTT / Senior vice-president, national director large/strategic accounts, construction and infrastructure services, Aon

CIRCULATION MANAGER | Urszula Grzyb 416-442-5600 x3537 ugrzyb@annexbizmedia.com

On efficient risk finance strategies “The primary difference between an average company and a great company is that the great company will check its ego at the door.”

President & CEO Mike Fredericks

Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com

Established in 1957, On-Site is published by Annex Business Media 80 Valleybrook Drive, North York, ON M3B 2S9 Publications Mail Agreement No. 40065710

ROBIN DAVIS / Lawyer, Borden Ladner Gervais L.L.P On what is considered “extra” work “Even in the face of the most comprehensive construction contracts, an owner may request that the contractor performs additional work that is not expressly included in the original agreement. Should the owner make such a request, questions are likely to arise.”

DAVID GODKIN / Freelance writer and editor On mobile cranes “Events on both sides of the 49th parallel bode well for the mobile crane business. President Obama is poised to sign into law Congress’s five-year, $305-billion highway bill. Further north Prime Minister Trudeau is trying to figure out how to spend more than $100 billion in capital on infrastructure over the next decade. Are crane manufacturers relieved and maybe just a little bit excited? You bet.”

JACOB STOLLER / Principal, StollerStrategies On green construction “Whether a project is a high-profile green office tower or a cost-efficient single family dwelling, environmental is gradually becoming the norm in construction. While contractors own only a segment of the environmental pie, their ability to deliver on eco-friendly projects is becoming a competitive differentiator.”

8 / MARCH 2016

ISSN: 1910-118X Printed in Canada Circulation email: apotal@annexbizmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9 SUBSCRIPTION RATES Canada $81.00 per year, Outside Canada US$139.00 per year, Single Copy Canada $13.00. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Occasionally, On-Site will mail information on behalf of industryrelated groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer privacy@annexbizmedia.com Tel: 800-668-2374 Content copyright ©2016 by Annex Publishing & Printing Inc may not be reprinted without permission. On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. DISCLAIMER This publication is for informational purposes only The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals.

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INDUSTRY NEWS

INDUSTRY>NEWS World of Concrete hits 7 year high World of Concrete 2016, which took place in Las Vegas from February 1 to 5, exceeded expectations across the board. This signature event for the concrete industry drew 60,110 registered professionals, up from 55,779 in 2015, and featured more than 1,532 companies exhibiting across more than 743,889 net sq. ft. of space, an increase of more than 67,000 net sq. ft. from 2015. This was the largest World of Concrete in seven years. The industry’s only annual international event dedicated to the commercial concrete and masonry construction industries, WOC features indoor and outdoor exhibits with suppliers showcasing innovative products and technologies, exciting demonstrations and competitions, and a world-class education program. “We are very pleased with the results of the show in all categories from the increase in the number of exhibitors (up almost 300 companies) to the increase in attendees (up 8 per cent) to the increase in the number of seminars taken (up 6 per cent),” said Tom Cindric, vice-president, Informa Exhibitions

Cement production up 10% year-over-year Cement manufacturers produced 0.82 million tonnes of cement products in December, down 26.1 per cent from November, according to the most recent numbers from Statistics Canada. However the year-over-year numbers for December are up 10.3 per cent over 2014. Shipments of domestic cement decreased 27.1 per cent from November to 0.79 million tonnes in December, but were up 5.5 per cent from the same month a year earlier. Including imports, shipments decreased 20.1 per cent to 0.88 million tonnes.

10 / MARCH 2016

U.S., Construction & Real Estate. The Canadian contingent at this international event remains strong. More than 5,000 industry professionals made the trip south to walk the show floor, test-drive equipment, take part in equipment challenges, and attend seminars. And Canadians weren’t the only ones

B.C. gets $73M federal gas tax funding for infrastructure Municipalities and communities across British Columbia are benefiting from the federal Gas Tax Fund, with more than $73 million allocated to projects last month, according to a release from the federal government. The list of 57 capital projects includes 12 for water and wastewater, four for local roads and bridges, two for solid waste management, and two for community energy systems. The biggest sum allocated to a project was $5.8 million for the District of 100 Mile House Water Supply Upgrade. Projects receiving more than $4 million were: the District of Barriere for improvements to its water supply and distribution system; the Cariboo Regional District for pool upgrades at the West Fraser Aquatic Centre; the Regional District of

making the trek to Vegas. “The international representation increased this year to 22 per cent. This is a very positive sign that the industry continues to grow and thrive,” said Jackie James, director of World of Concrete. World of Concrete 2017 will be held January 17-20; Seminars 16-20 at the Las Vegas Convention Center.

Central Kootenay for the Nelson and District Community Complex pool renewal; the City of Abbotsford for the James Plant Ultraviolet disinfection project, and the City of Kimberley for the Gerry Sorensen Way Reconstruction. In addition to the capital projects, 30 communities received “capacity building” funding for improving their asset management programs and updating their official community plans. The total amount allocated to these 30 projects is $4.2 million. The projects were selected in January out of 222 applications to the Strategic Priorities Fund. Over the year the government will hand out $253 million from the federal Gas Tax Fund to B.C. infrastructure projects. For a full list of projects visit: http://news. gc.ca/web/article-en.do?nid=1033649


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INDUSTRY NEWS Financial close reached on Edmonton’s $1.8B transit expansion TransEd Partners—a consortium of EllisDon, Bechtel, Bombardier and Fengate Capital Management—has achieved financial close on Edmonton’s Valley Line LRT Stage 1 expansion project. TransEd Partners was selected by the City of Edmonton in late November as the preferred proponent to design, build, finance, operate, maintain and supply vehicles for the project. The Valley Line LRT Stage 1 project is a Public-Private Partnership (P3) that includes a five-year DesignBuild stage and a 30-year operation and maintenance (O&M) term. The contract is valued at $1.8 billion. The Valley Line LRT is a significant part of the City of Edmonton’s transportation plan and will cater to the demands of one of Canada’s fastest growing cities. The proposed multi-phased, 27-kilometre urban route will ultimately create 25 new stops and three stations, serving an estimated 100,000 daily commuters. The line will run

southeast to west from Mill Woods to Lewis Farms, crossing through Edmonton’s downtown core. Stage 1 of the Valley Line LRT project encompasses the 13.1-kilometre, 11 stops including an additional two-story station between Mill Woods and 102 Street, connecting commuters with the Capital Line and Metro Line at Churchill Station. The project is currently on schedule for construction to begin in 2016. Another 14 street-level stops and two stations are

planned for later stages. Valley Line LRT project will be funded by $800 million from the City of Edmonton, $600 million from the province (including $300 million from GreenTRIP), and $400 million from the federal government—$250 million from PPP Canada funding and $150 million from the New BCF. “This is a good day for the City of Edmonton,” said Stephen Damp, EllisDon’s executive vice-president. “We are excited to get started and deliver a world-class system.”

Excavation begins at Rogers Centre for dirt infield Rogers Centre will have a different look this season, as the Toronto Blue Jays begin installing a traditional dirt infield for the 2016 season. Work began in February and the field will be ready for the start of the regular season in April. The process involves excavation of the cement floor at Rogers Centre and then layering the affected areas with gravel, sand and clay. The Blue Jays have long considered the possibility of having a dirt infield with the hope of a more aesthetically pleasing look and — if properly installed and maintained — a surface that’s easier on the bodies of the players. It seems they have their wish, even if the goal for an all-natural grass field isn’t quite there yet. The surface of the inner “grass” portion of the infield will remain artificial. “We are very excited to proceed with this project,” Blue Jays senior

12 / MARCH 2016

vice-president of business operations Stephen Brooks said in a statement. “This will both improve the surface for the players and also enhance the atmosphere of the stadium for our fans.” Tampa Bay’s Tropicana Field is the only other facility that uses artificial turf in the Majors. According to the Blue Jays, the excavation will occur in the affected basepath and infield areas to a depth of 30.48 cm/12 in. and will impact an area of approximately 1,115 sq. m/12,000 sq. ft. Layers of gravel, sand and clay will then be placed in the excavated areas to ensure “proper moisture content and conditions suitable to a Major League playing surface.” The Blue Jays are scheduled to open their home schedule on April 8 against the Red Sox. Check out the April issue of On-Site for more details on the Rogers Centre project.


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INDUSTRY NEWS Ontario raises $750M in Green Bonds for infrastructure Eight Ontario infrastructure projects will receive additional funding as a result of the province issuing its second Green Bond worth $750 million in capital. The eight infrastructure projects include improving transit, education, health care and creating jobs in communities across Ontario.

The projects include: Eglinton Crosstown LRT (Toronto) This project will receive up to $402 million to help build the LRT, such as constructing electric powered transit vehicles that produce near-zero emissions. Sheridan College Hazel McCallion Campus Expansion (Mississauga) This construction project will receive up to $68 million and the new building will be one of the most energy-efficient academic buildings in North America.

York VivaNEXT Bus Rapid Transit Expansion (York Region) Up to $100 million will be invested to improve access to public transit, which will contribute to decreasing greenhouse gas emissions. GO Transit Regional Express Rail This project will receive up to $200 million to help reduce greenhouse gas emissions by using electricity instead of diesel in trains and LEED gold-level certification for all Regional Express Rail stations and facilities. St. Joseph’s Health Care West 5th Campus (Hamilton) The new campus will receive up to $14 million and was constructed to achieve LEED gold-level certification that includes 90 per cent of construction materials coming from landfills and recyclable products and high-efficiency plumbing fixtures to reduce water usage by 20 per cent.

14 / MARCH 2016

St. Joseph’s Healthcare (London and St. Thomas) Both buildings will receive up to $5 million in total and were constructed to achieve LEED gold certification and incorporate several environmentally responsible features. Waypoint Centre for Mental Health Care (Penetanguishene) This new facility will receive up to $2 million and was constructed to achieve LEED gold-level certification through focus on healthy indoor environments and the efficient use of energy, water and other resources.

Centre for Addiction and Mental Health (Toronto) The redevelopment of the Centre for Addiction and Mental Health Queen Street site will receive up to $2 million and was designed to achieve LEED gold-level certification that will reduce energy costs by 27 per cent and include green spaces. “Green bonds build on our track record of infrastructure investments and support this government’s commitment to priority transit projects like the Eglinton Crosstown, York Viva Bus Rapid Transit and GO Regional Express Rail,” said Ontario Minister of Transporation Steven Del Duca. “These investments will help to manage congestion, connect people to jobs and improve the economy and residents’ quality of life.”

QUICK FACTS • Pioneered by the World Bank in 2008, green bonds are a tool to raise capital for a project with specific environmental benefits. • This set of Ontario green bonds was issued globally, primarily to institutional investors. • Altogether, 52 investors participated in the trade, including investors with green mandates and/or United Nations-supported Principles for Responsible Investment (PRI) signatories representing 70 per cent of overall sales. • On January 22, 2016, Ontario successfully priced a $750 million bond with a maturity date of January 27, 2023.


Final 2015 LEED certification numbers show steady growth in Canadian green building The Canada Green Building Council (CaGBC) saw a steady increase in LEED certifications in 2015, a result of green building’s growing impact as one of the most effective solutions to climate change. A total of 527 LEED projects certified between January 1 and December 31, bringing the grand total of certified projects in Canada to 2,576 – a total of 34,054,312 million sq. meters of certified space. Among the most notable stats for the year was the growth of certifications at LEED’s most rigorous levels, Gold and Platinum, which increased over 2014 by 6.2 and 28.6 per cent, respectively. Canada also saw its first LEED v4 certified project in October, and ended the year with a total of 13 projects registered under the newest version of the rating system. Totals by LEED certification level for 2015 were: 97 LEED Certified, 187 LEED Silver, 207 LEED Gold, 36 LEED Platinum “In many ways 2015 was a watershed year for green building, in Canada and on a global scale, culminating in the COP 21 ‘Buildings Day’ in December,” says Thomas Mueller, president and CEO of the Canada Green Building Council. “As the voice of the green building industry in Canada, we are now focusing on the federal government to leverage green building as an actionable solution to reaching Canada’s climate change commitments. The upward trend of Gold and Platinum level certifications is a positive sign that the industry is capable and ready to achieve more ambitious performance targets in new and existing buildings. However, we must engage more building owners to take action through energy benchmarking and verified performance improvements.” Among the most notable milestones for green building in 2015: • Edelweiss House in Wakefield, QC, became the first project to certify under the LEED v4 rating system in Canada; • Ontario certified its 1,000th project; • Five Toronto 2015 Pan Am/Parapan Am Games facilities earned LEED certification prior to the start of the games; • Dunbarton High School in Pickering, ON, was named Greenest School on Earth; and • Canada was named the top country for LEED projects internationally by the USGBC for the second year in a row. For more on LEED, check out our Q&A with Thomas Mueller on Page 18

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CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry

NON-RESIDENTIAL INVESTMENT UP IN DECEMBER

UNEMPLOYMENT RATE EDGED UP

Following a notable decline the previous month, the value of non-residential building permits rose 2.5 per cent to $2.3 billion in December. Gains in commercial construction intentions more than offset decreases in the institutional and industrial components. After three consecutive monthly declines, construction intentions for commercial buildings rose 14.6 per cent to $1.3 billion in December. The advance was largely the result of higher construction intentions for retail complexes and, to a lesser extent, storage buildings and research centres. Increases were posted in five provinces, led by Ontario and British Columbia. The largest declines were in Alberta and Quebec.

Employment was virtually unchanged in January (-5,700 or 0.0 per cent) and the unemployment rate edged up to 7.2 per cent. In the 12 months to January, employment increased by 0.7 per cent (+126,000). Over the same period, the unemployment rate rose from 6.6 per cent to 7.2 per cent, as the labour force grew at a faster pace than employment.

Billions 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.4 1.2 1.0

% 14.0 12.0 10.0 8.0 6.0 4.0 2.0

DJ

J

2010

2011

J

2012 Seasonally adjusted

J

2013

J

2014

D

2015

0.0

J

J

J

J

J

J

J

J

J

1976

1981

1986

1991

1996

2001

2006

2011

2016

Trend Cycle

Canada

Source(s): CANSIM table

Source(s): Statistics Canada

Alberta

Source(s): CANSIM table

Source(s): Statistics Canada

billions

BUILDING PERMITS ON THE REBOUND

5.5

The total value of building permits issued by Canadian municipalities rose 11.3 per cent to $6.9 billion in December, following a 19.9 per cent decline the previous month. Higher construction intentions for multi-family dwellings in Quebec, Ontario, British Columbia and Alberta explained the advance. Municipalities issued $2.3 billion worth of non-residential building permits in December, up 2.5 per cent over the previous month. An increase in the value of commercial permits more than offset decreases in the institutional and industrial components. Six provinces reported gains, led by Alberta.

5.0 4.5 4.0 3.5 3.0 2.5 2.0 0.5 1.5 0.5 Dec. 2010

2011

2012

2014

Residential, seasonally adjusted

Residential, trend-cycle

Non-residential, seasonally adjusted

Non-residential, trend-cycle

Source(s): CANSIM table Source(s): Statistics Canada

16 / MARCH 2016

2013

Dec. 2015


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LEED

LEED

UPDATE

Since the Canadian Green Building Council began operating in 2002 as an offshoot of the US

Green Building Council, the Leadership in Energy and Environmental Design program (LEED) has led Canada to a prominent position internationally in environmental construction. We interviewed Thomas Mueller, a founding director of CaGBC as well as its president and CEO, on how LEED grew so quickly in Canada, what its current challenges are and where it goes from here.

Q

HOW DID LEED ATTAIN SUCH A DOMINANT POSITION IN GREEN BUILDING INTERNATIONALLY? “A significant amount of effort has gone into developing the various versions of LEED over the years. It has had the best minds in green building developing and fine-tuning it for the past 20 years. Thousands and thousands of people are involved in developing the rating tool. Other rating systems do not have even close to the same level of effort. It’s a globally recognized system and there are LEED-certified projects in more than 140 countries. LEED can be delivered in any country that wants to participate. It has industry support.”

Q

CANADA IS A WORLD LEADER IN LEED. WHY IS THAT?

“Outside of the US, Canada has the largest number of both LEED-certified and LEED-registered buildings in the world. On a per-capita basis, I think we are on par with the US.”

18 / MARCH 2016

“We were an early adopter. It’s partly the proximity to the US. We were looking for a green building guideline or rating system and it seemed that LEED had all the qualities we were looking for, including a holistic emphasis on areas like water and building materials. And compared to other rating tools, it was more market-oriented.” “Another factor is that we do not regulate our construction sector as much as other countries, like Singapore and in Europe. Europe has very stringent regulations in place. We rely more on the market and a good, strong business case. LEED and green building have that.”

the Canadian climate and geography. For example, in Canada we use the National Energy Code of Canada for Buildings. In the US, they use ASHRAE. In Canada, we allow both.” “We have an industry advisory group that meets at least once a year and associations such as the Canadian Construction Association are part of that. We have a good relationship with the Real Property Association of Canada, which represents building owners. The Royal Architectural Institute of Canada is one of our founding organizations. We also have relationships with the National Research Council, the Federation of Canadian Municipalities and a long list of industry organizations.”

Q

Q

WHAT DOES CAGBC BRING TO THE TABLE?

“We make sure that the LEED rating system works well within the Canadian context. That means it works according to Canadian standards and it is appropriate for

WHO ARE THE PRIMARY USERS OF LEED?

“The federal government, most provincial governments and all the major cities are building to LEED, usually to LEED Silver or LEED Gold. This has been mandated for their


E WHY CANADA LEADS IN GREEN BUILDING

BY JIM BARNES

on-sitemag.com / 19


LEED

own buildings. The private sector and the commercial sector are showing real leadership. When it comes to office buildings, a lot of the commercial owners are looking at delivery to LEED Gold or Platinum. As well, there are more than 400 retail projects in Canada and a growing number of industrial projects. “We have about 44 million m² of LEED NC (New Construction) buildings and about 24 million m² of existing building projects.”

Q

HOW IS LEED BEING DEVELOPED?

“LEED is in the process of constant improvement, to make it more applicable, demanding and useful. So far in Canada we have seen v1, Version 2009 and now, v4. Many variants of LEED have been developed, such as LEED for schools and LEED for retail. However, most of the new projects in Canada are registered to LEED NC, which is flexible enough for most purposes.

Q

WHAT IS NEW IN V4?

“Version Four is more ambitious around anything that has to do with reducing greenhouse gas emissions, energy efficiency, water efficiency, renewable energy – those types of applications.” “One of the major rewrites is in the materials section. That’s something that’s very applicable to construction companies, because it includes the areas of recycling, construction and demolition waste – the types of things that are the responsibility of the contractor.”

20 / MARCH 2016

“The new version is looking at materials more from a life-cycle perspective, from material sourcing to demolition. We are asking manufacturers and suppliers to provide Environmental Product Declarations, to increase transparency on what is in those products.” “It’s a big step to reduce the environmental impact of the product, be it how it’s extracted, how it’s manufactured, how it’s transported and so on. The goal we have down the road is building products that have a lower environmental impact including a low carbon footprint.” “We are working with the Canadian

Standards Association, which supports companies to get Environmental Product Declarations for their products. Once these products have been used in LEED projects, I think they will find their way into master specifications.”

Q

WHAT ARE THE TIMETABLES FOR REGISTRATION AND CERTIFICATION?

“Projects usually take from three to five years from design to completing construction and it can take about six or seven years to build large projects. It can take quite a bit of time from the date of registration until a project is submitted for certification.”

LEED BY THE NUMBERS Last year, the USGBC named Canada as the top country for LEED projects outside of the US for the second year in a row. According to a report published in February, 527 LEED projects were certified in Canada in 2015, bringing the total of certified projects to 2,576 – a total of 34,054,312 million sq. m. of space. LEED Gold certifications were 6.2 per cent higher than in 2014; the figure for Platinum was 28.6 per cent. The first LEED v4 certified project came in October. By year-end, 13 projects were registered under v4.

Totals by LEED certification level were: • 97 LEED Certified • 187 LEED Silver • 207 LEED Gold • 36 LEED Platinum The leading provinces for LEED certification were: • Ontario – 198 • Quebec – 121 • British Columbia – 83 • Alberta – 75 • Manitoba – 19 • Nova Scotia – 17


ECONOMIC IMPACT

LEED

The economic impact of LEED in Canada was assessed in a report published by CaGBC and The Delphi Group in February. “Green Building in Canada: Assessing the Market Impacts & Opportunities,” stated that LEED generated $23.45 billion in GDP and was responsible for 297,890 full-time jobs in 2014. When indirect and induced contributions are included, the overall economic impact of Canada’s LEED projects certified from 2005 to 2015 will lead to $128 billion in gross output over their lifetime, $62.3 billion in total GDP and create 701,700 jobs.

“LEED Canada v1.0 was used for six years until 2010. All the LEED v1.0 projects that wish to certify must submit by June, 2016. We’re expecting several hundred projects to come in for certification.” “Projects can still be registered until October 31, 2016 under LEED Canada 2009. After that, projects must register under LEED v4. We expect that the last of the LEED 2009 projects will be certified in 2021. “The USGBC made a decision to extend that cut-off date to register under LEED 2009 until October 31, 2016, to give the industry time to transition to LEED v4. However, you can register a project under Version 4 right now if you wish. This was a decision by the USGBC related to the significant changes to the material section. The industry asked for more time to be able to deliver it successfully.”

Q

WHAT MISCONCEPTIONS DO PEOPLE HAVE ABOUT LEED?

“LEED is about transformation and change. When you do it for the first time, it can be challenging.” “There is this misperception that LEED costs much more, and in fact it does not. Perhaps in the beginning there was a significant premium. For a LEED Gold building today, the premium might be about two per cent, and in some instances three per cent or so. These additional costs can be recouped easily through reduced operating

22 / MARCH 2016

costs in a quite reasonable period of time. It isn’t even a question of life-cycle costs: you can get payback in three to five years.” “If it were not cost-effective, we wouldn’t have more than 5,000 projects in Canada. That is 5,000 projects that thought this was quite doable, and there is probably another 50 to 70 thousand projects globally.” “Some very large developers and owners are using LEED very successfully. They’re doing it because it has a strong business case. Of course, you need the right expertise – the right people who know what they’re talking about.”

Q

WHAT CAUSES LEED PROJECTS TO FAIL?

“Most of the projects that are registered get certified. There’s enough experience now in Canada and the U.S. to deliver this high success rate. In the early days, some people didn’t have the expertise and follow-through to submit for certification successfully.” “If you say you are registered to LEED Gold, that means nothing until you are certified. We are very clear about that – you cannot call it a LEED project unless you get it certified.” “There are some pretenders in the marketplace. There is terminology out there that the building is ‘LEED-like,’ or ‘shadows LEED,’ or other kinds of wording. Basically, it means nothing. LEED certification is a kind of quality assurance to verify that designers, contractors and owners have followed through on their commitment to higher environmental performance.”

Construction and trades companies accounted for 55 per cent of green building employment and GDP in Canada, equal to approximately 164,445 jobs and $13.13 billion dollars in GDP. Market penetration has been growing over the last decade, from 0.8 per cent across all asset classes for 2004-2009 to the present rate of 10.7 per cent for all new construction floor space in 2014. Some 22 per cent of all new commercial buildings, and about 30 per cent of all new institutional buildings constructed in Canada in 2014 were LEED certified. The report also presented a number of suggestions related to areas such as research and innovation, the gap between building design and performance, training and education and policy and incentives.

Q

WHAT ARE THE OTHER IMPACTS OF LEED?

“Apart from the environmental impact, there are quantitative impacts on the economy in terms of jobs and GDP. It allows tradespeople and designers to upgrade their skills. It allows manufacturers and suppliers to offer new products and service providers to market new services. These jobs require a higher-level skill set that is marketable.” “It supplies a pressure to evolve. It’s about change – because otherwise, why would we do it?”

Jim Barnes is On-Site’s contributing editor. Send comments to editor@on-sitemag.com


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Mobile Cranes

HOW

ABOUT

A LIFT?

Palfinger PK 150002 .

Keep business moving with the right mobile crane for the job BY DAVID GODKIN

E

vents on both sides of the 49th parallel bode well for the mobile crane business. President Obama is poised to sign into law Congress’s five-year, $305-billion highway bill. Further north Prime Minister Trudeau is trying to figure out how to spend more than $100 billion in capital on infrastructure over the next decade. Are crane manufacturers relieved and maybe just a little bit excited? You bet.

DOING THE DAY-TO-DAY Brian Smoot, project manager at Link-Belt Construction Equipment Co. says last year was grim. Contractors sat on the fence,

24 / MARCH 2016

preferring to rent rather than buy, while crane rental agencies themselves sat pat on existing fleets instead of buying new. “Since the highway bill’s been passed, we’re seeing a lot more interest in the pickers, and companies actually willing to spend the money.” Rob MacGregor, owner of MacGregor Crane Service Ltd. in Cornwall, Ont., is a little more circumspect of new business coming from increased infrastructure spending. “It depends if any of that money comes our way or not.” Cornwall, after all, is not Toronto or Vancouver. “All we try to do is keep the right sizes and styles of cranes on site.”

This could be the key to Link-Belt’s continued success in Canada. MacGregor’s biggest cranes are 90-tonne Link-Belt terrain cranes “that travel down the highway with 250 ft. of boom on them at 60 mph.” That’s a far cry from the older days when a truck crane maxed out at 0 or 45 mph. “These days we’re down the highway to a job site in one hour instead of two... It also enables [us] to take jobs father away.” So where’s the work for Link-Belt in North America? Freeway construction, says Pat Collins, Link-Belt’s director of product marketing. “You see these poured-in-place pillars for overpasses, and all those forms have to be put up. We see a ton of that


kind of work.” Link-Belt’s 65-tonne SANY SRC865 and 65-tonne Telescopic Boom Rough Terrain cranes represent the starting point for this kind of work, right up to the 100-tonne capacity machines. “Those elevated freeways are a lot of what pickers do. It’s not big glamorous stuff, but it’s the day-to-day stuff. The bigger stuff goes to a lot of plant work where long booms are needed.” Key to those bigger jobs are LinkBelt’s auxiliary swing-around-fly and jib for extended boom length. But more and more Link-Belt’s mid- and full-sized mobile cranes are also relying on telematics, remote cameras and a brand new feature, says Collins—outrigger lighting. “We have a lighting package in the carrier in new cranes where we light the entire extended outrigger beam and jack area.”

a wrench and a hammer.” Short of an override in today’s operator cab, the usual remedy is a call to the dealer to send out a technician. Manufactures will tell you they’re ‘hamstrung’ by the regulators; who are driven by safety considerations. “The load moment indicator is one [feature] that has to be on a crane now,” says Jamie Harthoorn, associate marketing manager for Terex Cranes. “And so at least from a manufacturer’s perspective there are reasons that [cranes] can’t do as much on the job site. Because we can’t have

them overriding those safety systems.” Mandatory outrigger position sensors may not stop an operator who’s determined to cheat, adds Terex’s chief engineer Mark Nielsen, “but now he’s got electronic feedback that tells him `Hey, you’re not set up properly to make this lift. You shouldn’t do it.’” Nielsen says he understands why a small minority of operators might cheat given the constraints they’re under. “Maybe they get away with it nine times out of ten, but that tenth time something bad happens.”

GOOD NEWS, BAD NEWS “When I started twelve years ago, my first truck was a twelve and a half-tonne boom National on a Ford truck with 45 ft. of boom, says Mike Barrie.” More capacity and boom length since then has been great, says the owner of Barrie Crane Rentals in Williamsburg, Ont. But something he and other crane rental agencies aren’t crazy about is the increasing complexity of on-board electronics. “It’s a real pain on a job site with a load when the thing starts acting up and you have no idea what it’s doing or why it’s doing it. It could shut you off. Maybe the winch won’t work. Or the boom haul won’t come in or go out.” “Very seldom is it a mechanical issue,” adds MacGregor. “If you have something stopping your crane it will be an electronics hitch somewhere, which is very frustrating `cause the average guy just can’t fix it.” “As soon as you have electronics problem you’re toast, “says Glenn Sorensen at Maxum Crane Rentals in Burnaby B.C. “The electronics are needed, but no one knows how to fix them.” Justin Pilgrim, global product director at The Manitowoc Company says he hears similar complaints, and believes part of the problem maybe that the mobile crane industry was late to the electronics game. He admits some operators still reminisce about older machines “you could fix with

Lifting drywall with Palfinger crane.

Mike Barrie, owner, Barrie Crane Rentals.

on-sitemag.com / 25


Link-Belt telescopic boom truck.

Mobile Cranes

The word from both Nielsen and Manitowoc’s Justin Pilgrim: All manufacturers can do is try to source reliable components and use best practices for electrical routing and other areas of the machine.

BOOM TRUCK VS. KNUCKLE BOOM The mainstay for National, just as it had been for years for Mike Barrie, is a much simpler mobile crane—the 26-tonne National 900A boom truck series with a 26-tonne 90-ft. main boom, plus up to 25 ft. and 45 ft. jib. “Frankly we haven’t done much with it because it has been so successful,” says Pilgrim. “It’s a bulletproof machine for any kind of commercial or residential construction.” Comparable in size is Terex’s 28-tonne

26 / MARCH 2016

BT 28106, a workhorse with a main boom of 106 ft. and maximum boom length of 153 ft. And as much as rental agencies say they want to retain the simplicity of the older machines they continue to insist on increased payload capacity and boom length—“to reach as far, and as high as they possibly can,” says Nielsen. “We’re constantly using better design techniques and more high-strength materials to keep the weight of the crane down so we can get it on to the road easily without special permits, and still have room to carry payload.” In fact, Terex’s family of boom trucks extends to its “crossover line,” a smaller capacity boom truck crane on its own chassis that extends all the way up to an

Manitowoc 900A series truck

80-tonne capacity truck crane mounted on a commercial chassis. What makes the crossover different, “is what’s in between the sub-frame and outriggers,” says Nielsen. “We got rid of the torsion box; we put all the outriggers emanating right from the centre structure, so there’s no more torsion. This design enables us to use high-strength steels and still keep it light, but without the outrigger lift that makes


operators feel uncomfortable.” Not to be outdone, Manitowoc has introduced one size up from its 26-tonne 900A series – the NBT30H-2. This is a 30-tonne boom truck with a four-section 110-ft. boom. Its most important feature: Dual “H” style outriggers said to offer excellent stability and allow full-span, midspan and retracted-span lifting capabilities.

STIFF STICK VS. KNUCKLE BOOM “Industries that use telescopic cranes are realizing that the same work can be achieved with knuckle boom cranes and are becoming more aware of the product advantages.” Greg Sneed, product manager for Palfinger’s Articulating Cranes’ division in Niagara Falls, says decades ago knuckle boom cranes were never considered a good fit for North America’s heavy construction sector. All that began to change in the 1970s when European manufacturers decided they could compete head on with telescopic truck boom cranes. “Now the smaller size knuckle boom cranes have virtually taken over the telescopic crane market, and we see that growth continuing in the larger cranes,” says Sneed. Knuckle boom cranes are bigger, market awareness and acceptance have expanded, and then there are what Sneed calls “the inherent advantages of

knuckle boom cranes,” a folding, selfcontained unit that allows you to carry a payload “with no height limitations.” Sneed says the mobile crane industry has also seen a dramatic increase in the use of radio remote controls on cranes as opposed to manual control levers. “We attribute this to improvements in cost, and the reliability of remote control systems over the years. In addition, the remote control places the operator in the most ideal positions when operating the crane.” Darren Parr agrees. The Ontario sales manager for Atlas Polar represents HIAB. “Anything above nine stories you use a tower crane, anything below, you come to us,” says Parr. A lot of the work he has seen revolves around drywall where an articulated boom, he maintains, easily outmatches a boom truck. “While a stiff boom has a lot of reach it also has a lot of awkwardness because it has to reach out straight. You have to put it too far away from the building. It’s almost useless for that application.”

Like Palfinger’s PK 44502 High Performance heavy-duty crane, knuckle boom crane remote controls are pivotal on the HIAB 435K, the pride of Atlas Polar’s fleet, says Parr. “When you’re lifting dry wall nine stories and having someone pull it off into a window it better be precise.” With a lifting capacity of 280,200 ft.-lb. and a vertical reach of 92 ft., the remote control CombiDrive is complemented by the HIAB Valve 91, a closed centre, pressure-compensated and load-sensing control valve that provides the operator with a fingertip feel when controlling the crane. So many smarts. So much capacity and reach. Are mobile crane manufacturers about to be rewarded for all their effort and innovation in federal infrastructure spending? Parr is cautiously optimistic. “I don’t think we’re going to see an instant spike, but eventually the trickle-down effect will occur and that will have a positive effect on us.

David Godkin is a Toronto-based freelance writer and editor. Send comments to editor@ on-sitemag.com

Terex’s 28-tonne BT28106.

on-sitemag.com / 27


Our Volvo E-Series excavator has allowed us to do things that are just plain amazing.

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Whitaker Construction has more than 60 years’ experience in underground construction. As one of the largest utility contractors in their region, they have to operate with a cutting edge. Jim says the EC380E gives them that edge — working up to a 480 class size, while fitting in tighter spaces — allowing them to tackle challenging jobs with more efficiency. Find tips to get the most from your excavator at volvoce.com/ExFactor.


Aggregates

THE THREE OF

R

’S

AGGREGATE RECYCLING ARO is on a mission to ensure aggregate materials are Recovered, Re-engieered and Re-used in new construction projects BY CORINNE LYNDS

E

fforts to launch a certification program for aggregate recycling facilities in Ontario stalled last month when partner associations and producers raised concerns at the 11th hour. Aggregate Recycling Ontario (ARO) has spent the last year and a half implementing a certification program for its members’ aggregate recycling facilities. ARO believes that recovered aggregate materials from road construction and demolition projects should be re-engineered and reused as recycled aggregate in new construction projects. Brian Messerschmidt, executive director of ARO explains that the certification program was initiated to build confidence in consumers of recycled aggregates. “Part of that was to develop and enhance a version of best practices that members would undertake. This includes having a quality program in place to show that they are checking materials coming in and going out,” he says. “We got to the point of ready to roll it out, then some of the members said ‘oh geeze, now that we’ve taken a closer look, we’re not sure we’re in favour of this when we don’t

have assurances from the municipalities that if we go to all this trouble, that they are still going to buy our product.” So, after a meeting of associations and producers on February 12, the decision was made to slow things down a bit. “We want to enter into a consultation process with the municipalities. We will consult with municipal associations, including the Municipal Engineers Association and the Ontario Good Roads Association, and directly with several key municipalities,” says Messerschmidt. “The objective is to determine what they feel are the necessary steps for the industry to take to build municipal confidence that recycled aggregate products meet quality expectations.” Messerschmidt explains that there are a number of secondary materials or industrial byproducts that are capable of substituting for primary or virgin aggregate, but ARO is particularly focused on increasing the use of two materials: RCM (recycled concrete material), and RAP (recycled asphalt pavement). He points out that Ontario’s 444 municipalities collectively are the

AGGREGATE PRODUCTS > MCCLOSKEY IMPACT CRUSHER

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on-sitemag.com / 29


Aggregates

AGGREGATE PRODUCTS > TRACK-MOUNTED IMPACTOR PLANT

KPI-JCI and Astec Mobile Screens’ FT4250 track-mounted impactor plant enhances ease-of-use, performance and productivity. It features a 42 in. x 50 in. Andreas Horizontal Shaft Impact Crusher fitted with a class-leading 6 ft. x 12 ft. doubledeck screen, resulting in up to 30 per cent more uptime and 25 per cent more production than competitive models. The FT4250 is part of KPI-JCI and Astec Mobile Screens’ exclusive line of continuous crushing and tracking impactors. The improved model offers a new, one-piece return conveyor design, as well as improved access to clean the radiator, improved transition from the cross conveyor, and a deep trough and covers to avoid spillage. The new model also incorporates a new 7-in. touchscreen Digsy controller, which allows for easier programming updates on site.

30 / MARCH 2016

largest consumer of aggregates in the province. They consumed between 60 and 70 million tonnes of the total 152 million tonnes that were consumed in Ontario in 2014.

A LITTLE HISTORY Aggregate Recycling Ontario was established in July 2011 to provide a unified platform for industry stakeholders that recover, recycle and consume aggregate materials in Ontario. Initiated by the Ontario Stone, Sand & Gravel Association and the Toronto and Area Road Builders Association, the organization was formed to bring attention and find a solution to the province’s growing aggregate piles, as well as expand the opportunities for recycling aggregates. Across the province, millions of tonnes of aggregate recovered from construction sites are stockpiled and ready to be used in new road construction projects. Although the provincial government—through the Ministry of Transportation—and some municipalities have been leaders in using recycled aggregates for several years, many municipalities’ specifications do not allow for recycled aggregates to be used in construction projects. Processed properly, recycled aggregates meet all performance requirements and offer a suitable alterna-

tive to primary aggregates. ARO is made up of 16 aggregate producers and seven supporting associations.

ECONOMIC AND ENVIRONMENTAL PERSPECTIVE Re-using concrete materials makes sense from both an environmental and economic perspective. The use of recycled aggregate preserves non-renewable resources, reduces our need for new quarries and pits, reduces energy use and greenhouse gasses associated with longer truck hauling, and can be supplied locally and less expensively than primary aggregate. Aggregate recycling facilities provide contractors with a location to recover reclaimed concrete material, without disposing of it in landfills or using it as clean fill, saving money in disposal fees. Properly processed, or re-engineered, recycled aggregate that meets Ontario Provincial Standard Specifications (OPSS), is a suitable material for use in road construction, as engineered backfill and as a base material in many other applications. Used appropriately, recycled aggregate performs as well or better than primary aggregate.


AGGREGATE PRODUCTS > FLEXIBLE IMPACTOR

Aggregates THE WINDING ROAD TO CERTIFICATION The recent decision to slow things down doesn’t mean ARO is abandoning its certification program. There will likely be amendments once the municipalities have been consulted, but the association has already developed key information in support of the program. At www. aggregaterecyclingontario.ca there are several documents available in support of the certification program, including: The Best Practices Guide, Recommended Quality Control Requirements, Audit and Check List, and a list of 10 accredited third-party engineers trained specifically to perform audits.

Ultimately, ARO’s mission: to ensure that aggregate material is recovered, re-engineered and re-used in new construction projects, remains the same. Whether this is accomplished through best practices, or a formal certification program is still to be determined. “It’s a bit of a chicken and egg scenario, as we could come out with having everyone certified and then still have municipalities that are reluctant to include our products. And so this is a step to ensure that if we go to all of this trouble [to certify] that municipalities are going to do their part as well.”

With files from www.aggregatesrecyclingontario.ca. Send comments to editor@on-sitemag.com

The QI441 Prisec impactor from Sandvik Mobiles, offers flexibility and performance as a primary or secondary crusher. The patented Prisec crushing chamber enables the base crusher to easily switch between primary and secondary mode, thereby giving the customer virtually two machines from one unit. The two hydraulically assisted curtains can be readily adjusted to allow the production of a wide range of product sizes. The versatility of the QI441 is further ensured by a comprehensive range of optional extras; these include a Doublescreen double-deck hanging screen with recirculation system.

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Software By Jacob Stoller

Green construction – Mastering the art of keeping track

W

hether a project is a high-profile green office tower or a costefficient single family dwelling, environmental is gradually becoming the norm. While contractors own only a segment of the environmental pie, their ability to deliver on eco-friendly projects is becoming a competitive differentiator. Information management is one of the most critical competencies for filling this niche. The key is that green projects, particularly those seeking certification according to recognized standards, depend on a wider range of parameters than traditional projects. Consequently, they raise the bar for the organization’s IT capabilities. “Previously, decisions were based only on cost. Now, you’re doing two things – balancing the budget, and also, meeting other requirements,” says Lauren Hasegawa, co-founder of Kitchener, Ont.–based construction software firm Bridgit. Many owners of environmental projects seek certification according to Leadership and Environmental Design (LEED). LEED uses a point system for a variety of categories including: energy-efficient design, water conservation and green construction practices, creating a framework for tracking numerical information pertaining to environmental performance. Of that large pie, general contractors own two portions— construction materials and maintaining an environmentally friendly jobsite. The challenge is that these parameters are cumbersome to track manually. “It could be anything from materials to construction practices,” says Hasegawa. For example, an organization may have to track numbers for recycled content. The distance materials have to be shipped to the

34 / MARCH 2016

jobsite, low-emitting or rapidly renewable materials. In terms of jobsite management, a contractor may be required to develop and monitor a waste-management plan, or a plan to control erosion on the jobsite.

MANAGING THE DATA Most contractors manage their environmental data manually. A set of supporting files might include Word documents, pdf files, photographs, and a spreadsheet that ties everything together. Consequently, the management of this information is haphazard—there’s no consistency, and it’s subject to human error. Tommy Linstroth confronted this problem when, as a LEED consultant, he had to manage the information for multiple LEED projects for his contractor clients. Seeing the need for a better way, he founded Green Badger, a Savannah, Ga.-based software company specializing in managing LEED information for contractors. “There wasn’t a good way to manage all this data, especially across multiple projects,” he says. “LEED has continued to evolve over the last 15 years, but the way that people are managing data is exactly the same... There are inherent inefficiencies, and apparent risk. So I wanted to build a platform that would alleviate that situation.” The Green Badger product captures and provides visibility of LEED-related data for single projects, or across multiple projects through a single portal. In addition to convenience, the product helps protect contractors against the risk of failing to meet contractual obligations, says Linstroth. “Contractors are expected to contribute points in terms of LEED credits across these construction projects,” he says. “Once the building is done, you need to show where you

earned the points. If you’re not tracking it, it opens you up to an elevated level of risk.”

DOING MORE WITH LESS Environmental performance, however, is about more than compliance with standards. Construction projects are notoriously wasteful, reducing the amount of resources that a project uses, makes the project effectively greener. “If you increase efficiency, you get off the site quicker, and that translates into less environmental impact,” says Hasegawa. For example, this would translate into lower power requirements, fuel consumption and equipment utilization. Information management can play a major role here. According to Stacy Scopano, senior industry strategy manager for building construction at Autodesk, who is based in Atlanta, Ga., one of the main causes of waste in construction is inaccurate information, such as incomplete details about constructability requirements. “You’re constantly living in a world of over-estimating just to cover yourself, because you’re not confident in the numbers or the quality of design,” says Scopano. “So from day one, you’re injecting waste that’s going to ripple across manpower, equipment and materials.” This provides one of the strongest business cases for BIM systems, Scopano says, because BIM allows entire processes to be simulated in advance, preventing wasted materials or labour. “Being able to ‘spell check’ a building before anyone cuts the material, even as far back as fabrication, is key,” he says. “BIM allows the big-ticket systems to go together like a bunch of LEGO blocks.” Although green will unfold on multiple fronts, the trend is here to stay, and contractors will have to make sure they have the IT capabilities to keep pace. Jacob Stoller is principal of Toronto-based consultancy StollerStrategies. Send comments to editor@on-sitemag.com


RISK By David Bowcott

Never pass on the opportunity to look yourself in the mirror

T

he primary difference between an average company and a great company is that the great company will check its ego at the door. Throughout my years, no matter the size, location, or type of work performed, the companies that excel year after year are not afraid to look in the mirror, and search for flaws. These flaws offer opportunities for continuous improvement. Great companies are not afraid to expose weakness, even if it means exposing deficiencies around aspects of their company’s culture that they have long viewed as perfect or virtuous. These companies are not only hungry for success, but they are hungry for sustainable success, and that is what makes them great. Today’s world presents many opportunities for companies that are looking for continuous improvement. Recently I worked with one of the world’s great civil contractors on a very large P3 project in the eastern United States. This was their U.S. operation’s first foray into P3s. For those that haven’t participated in a P3, in its purest form, Design-Build-Finance-OperateMaintain, P3s have multiple opportunities for contractors to have their operations scrutinized. In these deals so much of the risk resides with the execution of the construction contract and the operations contract, and those that are financing these ventures often don’t deploy their capital unless there is extremely strong certainty around the delivery of the design-build contract and the operations and maintenance contract. Through the RFP phase of this P3, the U.S. arm of this civil contractor proved it was a great company. Where some of their design-build joint venture partners were hoping to evade scrutiny of their operations,

36 / MARCH 2016

the people with this company invited it. To quote the project director: “I love these P3s, everywhere I turn there is somebody that is bringing in smart people whose sole objective is to tear apart my plan to build this project. It only makes me, my company and this project even stronger every time they do.” P3s are only one example of how leading companies are testing their mettle to ensure sustainable success. There are several other “mirrors” in today’s market place, and the following are a few examples: 1. Management Consultants – The number of global construction clients has gone from 5 in 2005 to more than 80 in 2015. As the construction industry continues to mature globally, more and more contractors are turning to these management consultants in order to seek out the latest and greatest ways to operate their companies. 2. Lender Technical Advisors – With the rise of P3s in particular, the debt community has grown much more sophisticated in its scrutiny project finance opportunities and they almost always have a lender technical advisor. These advisors test project costs and schedules to provide debt with a thumbs up on the deal, and they often monitor the deal to ensure it is getting delivered on time and on schedule. (Make sure you find the ones with the most battle-scars as they will offer the greatest value to your firm.) 3. Insurance Companies – More sophisticated insurance covers not only require the insured to complete an application that provides the insurer key information around how your company manages risk, but these insurers also require

your company be reviewed by their risk engineers. These folks are experts in the risks the insurance policy covers, therefore they possess knowledge around how to prevent and mitigate that risk. The insurer is hoping to have this risk engineer identify how good you are at managing this risk so they can rate the policy. Read the reports of these risk engineers. They are excellent mirrors for your company. 4. Peer Group Events – There are several events held throughout the year that allow construction companies to meet and discuss strategy with their peers. These events provide an opportunity to compare your operational practices with those of your peers. 5. Insurance Brokers – Your insurance broker places all of your insurance and surety lines, and if they have a significant pool of business for your industry, they should possess the ability to benchmark your insurance and surety program. Insurance carriers will only do select lines of cover and some do offer benchmarking capabilities for those lines, but with a broker you can get a holistic benchmarking inclusive of all lines. Further these brokers should aggregate best practices associated with risk mitigation and prevention for specific construction risks and thus holistically benchmark your operational practices. Once again, this works best if you have a broker that actually has a substantial pool of business in your specific sector of the construction economy. There are many other mirrors in today’s market place, and several others in the works. Make sure you keep your eyes and ears open for these opportunities to scrutinize your company, as they are excellent opportunities to maintain your greatness. David Bowcott is senior vice-president and national director of Large/Strategic Accounts at AON Reed Stenhouse Inc. Send comments to editor@on-sitemag.com.


ADVERTISERS’ INDEX & WEBSITES ADRIAN STEEL...................................................15 www.adriansteel.com

BRUTE ................................................................ 31 www.rubbermaidcommercial.com

TOPCON............................................................. 32 www.topconpositioning.com

AHES................................................................... 37 www.ahes.ca

TAKEUCHI ..........................................................23 www.takeuchi-us.com

VOLVO ................................................................ 28 www volvoce.com/ExFactor

B2W SOFTWARE ............................................... 9 www.b2wsoftware.com/products/maintain CMIC .................................................................. 21 www.cmicglobal.com CONEXPO .......................................................... 39 www.conexpoconagg.com DOOSAN INFRACORE ..................................... 40 www.DoosanEquipment.com/Randy DOOSAN PORTABLE POWER ......................... 6 www.DoosanPortablePower.com FREIGHTLINER ................................................... 2 www.FreightlinerTrucks.com/Tex-Mix

SHOW HOURS: Thursday 9am-5pm | Friday 9am-4pm

HCSS ...................................................................15 www.HCSS.com HYUNDAI .......................................................... 35 www.hceamericas.com

You can PRE-Register & Fast-Track Your Entrance to the Show!

JOHN DEERE ...................................................... 4 www.JohnDeere.com

PLUS… Pre-register by March 24, 2016

KPI/JCI ................................................................11 www.kpijci.com

and receive a ballot for a chance to win a Prize Showcase valued at over $3,000.00!

(Ballots available exclusively to pre-registered visitors; see website for details.)

KUBOTA ............................................................. 33 www.kubota.ca

CONVENIENT ONLINE REGISTRATION AVAILABLE…

LIEBHERR ...........................................................17 www.liebherr.ca NAVISTAR...........................................................12 ca.InternationalTrucks.com/HXSeries

VISIT AT AHES BOOTH #643 on-sitemag.com / 37 OnSite_Feb_AHES.indd 1

2016-01-29 8:35 AM


CONTRACTORS & THE LAW By Robin Davis and John Pratt

When is a contractor’s extra work a compensable “extra”?

E

ven in the face of the most comobligation to compensate the contractor. “within the general scope” of the contract prehensive construction contracts, However, where the contractor performs documents, and the standard form contract an owner may request that the additional work without the instruction or then sets out the scheme for calculating contractor performs additional work approval of the owner, or supplies matethe owner’s payment for the performance of that is not expressly included in the original rial of a better quality than the minimum this additional work. Where the additional agreement. Should the owner make such a quality necessary for the fulfillment of the work is beyond the ambit of the contract’s request, two questions will likely arise: 1) contract without the owner’s instruction or extras provisions, or where extras provisions Is the contractor obligated to perform the knowledge, the contractor cannot later seek are entirely absent, it is expected that an additional work? And, 2) If the compensation for the performance of contractor performs the additionthis additional work. “If the work in question is al work, is the owner obligated to Whether work that is requested pay for the contractor’s efforts? by the owner is expressly set out in specifically called for by the contract, Addressing these questions the contract, is encompassed within then the contractor is obligated to requires a consideration of the the extras provisions, or is outside terms of the contract, the nature the operation of the contract altoperform the work without receiving of the project, and the interacgether depends on the terms of the additional compensation.” tions between the owner and contract, the nature of the project the contractor. and the surrounding circumstances. From the outset, if the work In light of the dynamic and often in question is specifically called for by unexpected nature of construction projowner will not be able to compel the the contract, then the contractor is obliects, owners and contractors alike should contractor to perform the additional work. gated to perform the work without receiving carefully consider the inclusion of extras Where an owner expressly or implicadditional compensation. However, where provisions prior to entering into an agreeitly instructs the contractor to perform the work is not expressly provided for in ment. Similarly, when an owner raises the additional work, beyond the operation of the contract, the contract may nonethematter of additional work, the parties would the contract’s extras provisions (if there less contain provisions entitling the owner be wise to revisit the manner in which the are such provisions), the additional work to demand that the contractor perform the contract addresses the possibility of addiis seen as “new contract” or “quantum additional work. In this case, such work tional work, if the contract contemplates meruit” extras. The fundamental considfalls within the traditional understanding such work at all. eration in such circumstances is whether of “extras”. Of course, the application of a This article is for information purposes the owner did, in fact, request that the contract’s extras provisions, and the correonly and may not be relied on for legal contractor perform the additional work, sponding method of calculating the owner’s advice. or alternatively, whether the owner was payment for the contractor’s performance aware that the contractor was performing of the additional work, will depend on the the additional work and approved of the Robin Davis is a lawyer at the law firm of drafting of the provisions on a case-by-case contractor’s efforts. If so, it may be that a Borden Ladner Gervais LLP, practicing in basis. For example, the CCDC 2 Stipulated new agreement has been formed between the areas of construction, insurance and tort Price Contract entitles an owner (via the the owner and the contractor for the litigation. John Pratt is an articling student owner’s consultant) to direct the contracadditional work that necessitates payment. at Borden Ladner Gervais LLP. tor to perform a change in the work that is For such work, the owner has an equitable

38 / MARCH 2016


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2016-01-05 1:57 PM


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DoosanEquipment.com/Randy1 1.877.745.7814 Doosan and the Doosan logo are registered trademarks of Doosan Corp. in the United States and various other countries around the world. ©2016 Doosan Infracore Construction Equipment America. All rights reserved. | 169


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