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IS THERE AN APP FOR THAT?

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VOLUME 62, NO.1/ FEBRUARY 2017

COVER STORY 18 Lean construction puts down

roots in Canada

With a focus on efficiencies and waste reduction, Canadian contractors are cutting costs and getting the job done faster using lean principles.

DEPARTMENTS 7 Comment

Cultivating leaders

10 News

Industry news

14 Contractors’ Corner Geoff Smith, EllisDon

16 Construction Stats The latest news on construction activity and employment

COLUMNS 56 Risk

Material risk events in P3s

58 Contractors and the Law

3 irs ®

An estimate is never “just an estimate”

IN THIS ISSUE 49 Concrete On-Site

57 Index of Advertisers

features 26

When people ask “is there an app for that?” the odds these days are pretty good that the answer will be “yes”.

Heading to Vegas for CONEXPO in March? Make it a productive trip by planning ahead. Read key show info and get a sneak peek of products being launched at the show.

Construction industry kicks off the year with a strong turnout at World of Concrete 2017 in Las Vegas.

The hottest construction apps

tion.

CONEXPO-CON/AGG show preview

World of Concrete Wrap-Up

And the winners are… Learn more about the teams that were recognized for their innovative projects at the Ontario Concrete Awards.

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COMMENT

Cultivating leaders

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

t’s no secret that Canada’s construction sector is facing a skills shortage. The baby boomers are retiring, and there are fewer people entering the industry. Old news, right? Well, don’t turn the page yet. There’s another pressing matter that you can do something about right now. Cultivate tomorrow’s leaders, today. “There is insufficient talent at the intermediate to mid-level, which will cause a shortage in senior leadership within the next five to 10 years,” says Hays Canada president Rowan O’Grady. It’s increasingly difficult to find great young talent, and even more difficult to hang on to them once they’ve got a few years experience under their belts. Samantha Massey, interim general manager at Alliance Excavating in Edmonton knows this all too well. Last year she saw a lot of employee turnover due to poaching of middle and upper management from larger construction firms. This caused added stress for remaining team members, as they scrambled to pickup the slack. “Our middle and upper management employees are sometimes overwhelmed. We miss opportunities, because we don’t have enough experienced managers to complete estimates, prequalification packages, etc. As a result, there is a lot of cross training and job sharing so that all the work can get done.” In an effort to protect against poachers, Alliance has beefed up its compensation packages to compete with larger firms, and now also offers training/education, better working hours, more vacations, and less over-time. “Most large companies can afford to offer better packages to skilled staff. I guess our selling point would be the opportunity to influence policy since we’re a smaller business,” adds Massey. At this point Alliance remains an outlier.

Despite recognizing that they need to do more, most contractors still aren’t upping the ante. According to Hays Canada’s annual Salary Survey: 73 per cent of construction employers believe competitive salaries make them attractive to top candidates. And yet, very little action is being taken to address this issue – 71 per cent haven’t altered compensation in an effort to attract top talent. Attracting skilled workers needs to be a key focus for the years ahead, but take a good look at the young talent you already have in place, and start training them for the future. As O’Grady points out: There’s an experience gap in the industry. Fill this within your own organization by recognizing the potential of new hires. Mold them to fit other roles within your workforce. This is not only a good strategy to deal with a skills shortage, but it’s great succession planning too. Many senior construction leaders are thinking about retirement. Make sure you have a plan in place to fill those roles with employees already in your organization. Invest your time and money in the young professionals that show potential, and make sure you let them know that there are progression options. Employees who know that there is a path available to them will be motivated to stay and succeed.

Corinne Lynds / Editor CLynds@on-sitemag.com

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CONTRIBUTORS

MEET OUR CONTRIBUTORS FOR THIS ISSUE DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On material risk events: “One area where we have very strong penetration is the Public-Private Partnership space (or P3s)... Given that P3 market share, we’re able to compile claims data to a statistically significant level, and thus give the industry an accurate picture of where the risks are manifesting in the P3 space.”

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 MEDIA DESIGNER | Lisa Zambri lzambri@annexbizmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 DSkene@on-sitemag.com SALES & MARKETING COORDINATOR | Kim Rossiter (416) 510-6794 KRossiter@on-sitemag.com ACCOUNT COORDINATOR | Cheryl Fisher (416) 510-5194 CFisher@annexbizmedia.com CIRCULATION MANAGER | Urszula Grzyb 416-442-5600 x3537 ugrzyb@annexbizmedia.com Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com

NATE HENDLEY / Freelance Writer & Author On lean construction: “Lean design/construction borrows from both the Toyota Production System used in Japan to streamline the car-making process and lean manufacturing in general. The end-goal in all cases is to increase efficiency by reducing waste. Continuous improvement and saving money are also central aims.”

JACOB STOLLER / Principal, StollerStrategies On the hottest construction apps: “When people ask “is there an app for that?” the odds these days are pretty good that the answer will be “yes”. Even in construction, which is not known for being on the leading edge of IT, there are apps for the most specialized tasks imaginable.”

COO | Ted Markle tmarkle@annexweb.com President & CEO | Mike Fredericks Established in 1957, On-Site is published by Annex Business Media 80 Valleybrook Drive, North York, ON M3B 2S9 Publications Mail Agreement No. 40065710 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 industry-related 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.

KRISTA JOHANSON / Borden Ladner Gerbais LLP On risk allocation: “Builders’ Risk (or Course of Construction) insurance policies are commonplace on construction projects. Although they provide coverage for physical loss or damage to ongoing construction works, these policies typically include a “defects” exclusion for faulty or defective workmanship, materials or design.”

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.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

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8 / FEBRUARY 2017

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INDUSTRY NEWS

INDUSTRY>NEWS LEED projects in Canada surpass 1 billion square feet Green building in Canada has reached a significant milestone, with the Canada Green Building Council (CaGBC) announcement that there are now more than 1 billion square feet of LEED projects in Canada. Representing nearly 7,000 LEED buildings, homes and communities since 2004. This growth can be attributed to the successful and widespread adoption of LEED by Canada’s industry, leading to significant innovation and economic development. As the federal government plans for the implementation of the Pan-Canadian Framework on Clean Growth and Climate Change – which recognizes the building sector as an area critical to the reduction of emissions – the building industry’s widespread LEED experience will be crucial to its success. “We have just 13 years to reach aggressive national and international commitments to climate change,” says Thomas Mueller, president and CEO of the Canada Green Building Council. “Our

members, stakeholders and the green building industry have proven that we are ready to take on this challenge. With more than 1 billion square feet of LEED projects across the country, a new more rigorous version of LEED, and the release of a net zero carbon standard for Canada coming mid-year – it is evident that we are ready to hit the ground running and do our part in the countdown to 2030.” As the world moves toward a low-carbon economy, CaGBC is pushing higher standards for the performance of buildings (both new and existing) through LEED v4. It is also moving ahead with plans to support the industry by providing Canada’s first state-of-the-art guideline and thirdparty verification for zero carbon buildings. In addition, it is expanding research and consultations on existing buildings to determine how Canada’s infrastructure can be better managed and retrofitted – both to stimulate job growth and reduce GHG emissions.

OVERALL LEED NUMBERS IN 2016 SHOW GROWING IMPACT ACROSS THE COUNTRY In a preview of what is to come, LEED’s end of year totals for 2016 were strong overall, with 406 LEED projects certified between January 1 and December 31, 2016. This brings the grand total of certified projects in Canada to 2,990. Final totals by LEED certification level for 2016 were: • 70 LEED Certified • 154 LEED Silver • 152 LEED Gold • 30 LEED Platinum The top five *provinces for LEED certification across Canada in 2016 were: • Ontario – 147 • Quebec – 103 • British Columbia – 62 • Alberta – 61 • Manitoba – 10 *Note: these are totals for the year, not cumulative.

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Conference Board of Canada anticipates stronger economy in 2017 Following an increase of just 1.3 per cent last year, Canada’s economic growth is expected to accelerate to 1.9 per cent in 2017, according to The Conference Board of Canada’s Canadian Outlook: Winter 2017. “Last year, Canada’s economic growth was held back by weak business investment and a disappointing export performance,” said Matthew Stewart, associate director, national forecast. “Overall, we anticipate a better performance this year, as the energy sector puts less of a drag on the economy, exports manage a slightly better performance and government stimulus ramps up.”

REPORT HIGHLIGHTS: • Canada’s economic growth is forecast to accelerate to 1.9 per cent in 2017. • Improved export activity and increased government spending will partly offset slowing consumer spending and declining residential construction. • Business investment outside the oil and gas sector is showing some signs of recovery. Although Canada’s trade sector will likely encounter numerous speed bumps

over the next couple of years, exports are projected to increase by 1.8 per cent in 2017 and see even stronger growth in 2018, thanks to strength in the U.S. economy and a weak Canadian dollar. However, export growth will be held back somewhat by capacity issues over the near term. With most manufacturing sectors operating at capacity, the lack of investment spending to expand capacity will continue to limit the ability of firms to increase production, and hence, exports. While it is too soon to estimate the impact that the new U.S. government will have on Canada’s trade sector, it is highly probable that Canadian exporters will face greater protectionist measures under the Trump administration. Business spending outside of the oil and gas sector should finally see some growth this year. Non-residential construction is poised for a gentle recovery, while machinery and equipment (M&E) investment spending is also expected to turn a corner. However, this won’t be enough to offset further declines in oil and gas investment, which is projected to drop by 4.9 per cent this year. Overall, business investment is projected to decline by 0.3 per cent, before increasing in 2018. While the household sector will remain

a key driver of the economy in 2017, consumer spending growth is forecast to slow slightly amid mediocre employment gains and subdued wage growth. In addition, residential construction is poised to fall as recent changes to mortgage rules take some of the steam out of the housing market. Housing starts will see a drop by roughly 185,600 units this year and rise slightly in 2018. One factor that is expected to give a boost to economic growth is the beginning of federal stimulus funds. The federal government is committed to increasing program spending and infrastructure funding levels, which will account for 0.3 percentage points of Canada’s economic growth in 2017. With economic growth remaining modest in Canada, the Bank of Canada is expected to hold off on any interest rate hikes until 2018, even then the rate of increase will be modest. As Canadian and U.S. interest rates widen, the loonie will lose ground against the U.S. dollar in the coming year, expected to average US$0.745. SOURCE Conference Board of Canada

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INDUSTRY NEWS CCIL estimates testing and inspection of all highway construction could save tax payers $2B over 10 years The Canadian Council of Independent Laboratories (CCIL) is urging the Ontario government to restore and strengthen independent oversight of all highway construction projects in the province. CCIL estimates this initiative would reduce provincial expenditures by hundreds of millions of dollars – and potentially could save $2 billion or more – over the next 10 years. The recent Auditor General of Ontario’s report found new and rehabilitated roads throughout the province are requiring repairs far sooner than expected. Roads that should last 15 years are showing cracks after just one to three years, and these premature failures are costing taxpayers millions of dollars in additional expenditures. The report linked these problems to the government’s increasing use of performance-based contracts. Since these procurement arrangements (first introduced in 2010) require contractors to warrant that their work will meet specifications over defined periods of time, the government felt that independent testing and inspections were largely unnecessary. The result? The report concluded that contractors are now

“essentially monitoring themselves” and this has created the potential for shortcuts and abuses. While the full extent of the problem is unknown due to insufficient documentation at MTO, the Auditor General’s Office was able to investigate a small sample. Its review of five highway projects found the ministry paid $23 million for repairs after one-to-three years, on top of the $143 million to initially pave these highway sections. In other words, the repairs – which should have been unnecessary – ended up costing taxpayers on average an additional 16 per cent over and above the original price. The repair costs on three of the projects were closer to an additional 50 per cent. “And the problems stemming from the lack of a rigorous and independent quality assurance process are not limited to pavement cracking,” notes Stephen Walker, a member of the CCIL Board of Directors. A structural failure on the new Nipigon River Bridge a year ago, for example, occurred after an engineer hired by the contractor certified that the construction was up to standards. The bridge cost $106 million. The repairs will inflate the final price by an estimated $8 million to $12 million, or roughly 10 per cent. Over the next decade, the Ontario government plans to spend $18 billion rehabilitating and building new highways and bridges. If this major infrastructure investment experiences similar rates of premature failure, the potential risk to the taxpayer is $2 billion or more of unbudgeted and unnecessary expenditures. “The solution is simple. The province must put in place the controls and processes that will restore independent oversight of construction projects,” says Walker. SOURCE: Canadian Council of Independent Laboratories

PCL’s Paul Douglas named to Alberta Business Hall of Fame The PCL family of companies is pleased to announce that its chairman, and former president and CEO, Paul Douglas, has been named to the Alberta Business Hall of Fame, sponsored by Junior Achievement. The announcement was made in front of the Junior Achievement Business Wall of Fame in Manulife Place, in downtown Edmonton.

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CONTRACTORS’ CORNER

EllisDon’s Geoff Smith has taken up blogging: The Problem With Gretzky “There are fifty ways to screw up any decent crime, and if you can think of twenty-five of them, you’re a genius. And you ain’t no genius.” — Mickey Rourke to William Hurt, in the ’82 film noir classic ‘Body Heat’

e’ve all heard it, respectfully, too many times. People love to quote Gretzky’s alleged advice: ‘Don’t skate to where the puck is, skate to where it’s going to be’. Apparently the advice came from Wayne’s dad Walter, which makes it all the more endearing. But if I hear that little gem even one more time, I think I’ll strangle somebody. (Happy New Year, by the way.) The biggest problem is that Wayne was a one-in-a-million hockey genius. He apparently just had this uncanny sense of knowing where the puck was going. The rest of us, meanwhile, are more like William Hurt’s hapless character – we ain’t no geniuses. I have zero idea where the puck is going. I thought that Hillary was going to win. When Trump won, I thought that the stock market would go down and gold would go up. The other problem is that sports analogies never apply very effectively in business, or life. Just one example: In business, there isn’t one puck, there are several. Everyone alive has been scored on because they thought they were focused on the main action, and missed the little winger swooping down the left side with the other puck. Of course, the more pucks there are, the more opportunities as well. Here’s a third problem: Everyone already knows that they must skate to where the puck is going and they do their best to do exactly that. Everyone else is doing exactly the same thing, with the same basic thinking. So when you skate over there, it’s very crowded. And you end up hacking and slashing and elbowing with the other nine skaters (and trying to win by competing on low margin — we do that all the time). So here’s my humble counter thought, worth exactly what you paid for it: When everyone agrees where the puck is going (which they will), skate somewhere else. If there’s a seventy-five per cent chance the puck is going to a certain spot, all the

Gretzky wannabes will skate there. Your individual chances will be way better at the twenty-five per cent spot. It likely won’t come to you the first time, and you’ll look like a dummy. And probably not the second time, but it will come to you before long. And then you’ll have the puck. And you’ll be all alone. And you’ll have the puck. (Pucks are very unpredictable. Even genius boy Gretzky didn’t always get it right.) Or pick a different puck. Almost everyone else will pick the most obvious opportunity. Many of them will skate over there simply because everyone else is skating over there. (OK, I know I’m torturing this analogy to death). At EllisDon in the eighties and early nineties, Alberta was the radioactive puck. Everyone laughed at those lost souls right up until they started cashing disproportionate profit sharing cheques. In the last 10 years until recently, it’s been our Services Division, where the opportunities for advancement have been much faster, because most people sneered at them. Ha ha ha… oops. Here’s the other reason for this strategy. If it doesn’t work, because you’ve picked the wrong spot or the wrong puck, just skate somewhere else. Almost every successful entrepreneur has two or three misses before they hit it big. This blog is about careers,

but the rules are the same. Just don’t abandon the strategy. Even though it has one big problem… I see people do it all the time. They pine after the senior position that was critical 10 years ago, instead of the one that will be critical five or 10 years from now. Why? It’s not because they can’t see it, that’s actually the easiest part. It’s because it’s very solitary, and the other nine skaters laugh at you. ‘What are you doing over there, stupid? This is where the action is.’ There is very little immediate joy in snubbing your nose at every other player on the rink, and standing by yourself in a place with a 25 per cent chance of immediate success. But it’s the only way to win. Thanks for reading. PS: Full disclosure: I never played the game. I know absolutely zero about hockey. But Gretzky’s advice is used as an analogy for pretty much everything, and I’ve been around a lot of career path development (and a reasonable amount of business building). Have a great 2017.

Geoff Smith is president and CEO at EllisDon Inc. Send comments to editor@ on-sitemag.com.

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

EMPLOYMENT RATE IS ON THE RISE Employment rose by 54,000 (+0.3 per cent) in December, the result of gains in full-time work. The unemployment rate increased 0.1 percentage points to 6.9 per cent, as more people participated in the labour market. In the fourth quarter of 2016, employment increased by 108,000 (+0.6 per cent), the largest increase since the second quarter of 2010. This followed a gain of 62,000 (+0.3 per cent) in the third quarter.

INVESTMENT IN NON-RESIDENTIAL CONSTRUCTION DOWN Investment in non-residential building construction totalled $12.3 billion in the fourth quarter, down 0.7 per cent from the previous quarter. This was the seventh decrease in eight quarters. Nationally, the decline reflected lower spending on commercial and industrial building construction. Overall, non-residential investment fell in six provinces in the fourth quarter, with British Columbia posting the largest decline and Alberta a distant second.

BUILDING PERMITS DOWN IN NOVEMBER Municipalities issued $7.8 billion worth of building permits in November, down 0.1 per cent from the previous month. The decline was largely the result of lower construction intentions in Alberta, following a spike the previous month due to impending changes to the Alberta Building Code.

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LEAN CONSTRUCTION

LEAN CONSTRUCTION PUTS DOWN

ROOTS IN CANADA 18 / FEBRUARY 2017

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With a focus on efficiencies and waste reduction, Canadian contractors are cutting costs and getting the job done faster BY NATE HENDLEY

he new Dr. F. H. Wigmore Regional Hospital in Moose Jaw, Sask., serves the Five Hills Health Region, an area containing 54,000 people in the south-central portion of the province. Open since late 2015, the facility is considered the first major construction project in Canada designed and built to “lean” principles. Those involved in building the hospital say the process was faster and cheaper than using traditional methods. While still a niche methodology, lean supporters point to this project and a handful of others as proof that lean can produce real results. Lean design/construction borrows from both the Toyota Production System used in Japan to streamline the car-making process and lean manufacturing in general. The end-goal in all cases is to increase efficiency by reducing waste. Continuous improvement and saving money are also central aims. While lean has been percolating in U.S. construction circles for a few years, it is still relatively new in Canada. The decision to design and build the Dr. F. H. Wigmore Regional Hospital (known informally as the Moose Jaw Hospital) according to lean concepts can be traced to a Saskatchewan government commitment to use lean principles in

health care. An RFP was issued in late 2011. In February 2012, Calgary-based Graham Construction and Engineering Ltd. picked up a design/construction contract, despite a lack of experience using lean methods. Graham embraced lean because “it just made sense to our senior VPs once we became exposed to this project. Lean is a very special, highly collaborative approach to design and construction. It mirrored a lot of what we were already doing,” says Art Winslow, director of lean and Integrated Project Delivery (IPD) at Graham. According to Winslow, the Moose Jaw hospital was Canada’s first major lean construction project. It was also his first lean assignment. He served as the initial project director for Graham in Moose Jaw. As part of the lean collaborative approach, the project used the IPD process and “Big Room” meetings. IPD is a project delivery model that emphasizes teamwork and waste-reduction. Big Room meetings involve putting all the main participants in one space to work together (physically or virtually) on a regular basis. The idea is to eliminate “silos” and improve communication. Design meetings regarding the Moose Jaw project began in March 2012, with construction commencing a year later.

“You think about how you’re going to move materials … ‘How am I going to get drywall up to the third floor?’ We could leave the [glass] out, crane the drywall from the ground right in through the windows, drop it on a rolling cart,”

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LEAN CONSTRUCTION

According to Winslow, the Big Room concept worked well right from the start: “We met two to three days every two weeks where we all got together—some 30 to 40 people,” he states. Big Room participants included owners, architects, construction company representatives, consultants, sub-contractors and municipal building code officials. Doctors, nurses and former patients were also sometimes present; “[We] designed the building with them. When you involve end-users in the design of the building, they own it,” says Winslow. In lean, input from end-users and other Big Room participants is used to find

Design meetings regarding the Moose Jaw project begain in March 2012, with construction commencing a year later.

opportunities to eliminate waste—the holy grail of lean design/construction. “Valuestream mapping exercises” (in which the entire design/construction process is carefully analyzed) are also typically held to achieve this end. During the Moose Jaw project, waste was eliminated on a number of fronts. Some design drawings were directly incorporated into the project’s Building Information Modelling (BIM) software program live to reduce bureaucratic to-and-fro regarding drawing approvals. Other waste-elimination measures were more physical in nature. “You think about how you’re going to

move materials … ‘How am I going to get drywall up to the third floor?’ We thought about that [and] designed large windows into the ends of the corridors. We could leave the [glass] out, crane the drywall from the ground right in through the windows, drop it on a rolling cart,” says Winslow. The “5S” concept (sort, set-in order, shine, standardize, sustain) was also used. To this end, a colour-coded system with clear labels was devised to store parts. That way, workers didn’t have to waste time searching unmarked containers for parts. A Kanban system was implemented as well (Kanban is a Japanese inventory

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LEAN CONSTRUCTION

Big Room meetings put all the participants together on a regular basis. The idea is to eliminate “silos” and improve communication.

management process that uses signage and other tools to indicate when supplies are running low and automatically assigns responsibility to refill inventory). Scheduling in Moose Jaw centered around a lean construction methodology called a “Pull Plan”. “A Pull Plan is at the heart of lean thinking… Traditional scheduling means ‘when, who, and what’. A Pull Plan explains ‘how’. It’s really about ‘How are you going to do this? What are the steps involved in all this?’ Thinking backwards from your outcome. You establish what your outcome is, what your milestones need to be. Then you’re working to discover what needs to be done to meet each of the milestones. It’s 180 degrees from traditional planning,” says Winslow. Organizers aimed to permeate the entire Moose Jaw project with the lean spirit. Construction workers, for example, were rewarded for developing ideas to boost efficiency in their work areas.

“So if a sprinkler pipe fitter came up with a better way to get his waste material from under the machine to the bin, if he could demonstrate that saved production time, we would reward that with a small Home Depot card. What really was amazing was that the reward became irrelevant. It really became about the bragging rights of the guys,” says Winslow. The Moose Jaw project followed the Green Guide to Health Care, a collection of design/construction strictures on building environmentally-friendly hospitals and other buildings. The Moose Jaw facility was equipped with efficiency lighting and proximity sensors (so lights go out automatically in a room when no one is present, to save energy).

LEAN CONSTRUCTION INSTITUTE IS BORN During the summer of 2013, officials arranged for roughly 150 people to attend

a Big Room session in Moose Jaw. A special-event was held, dubbed the Lean Summit, at which lean construction principles were explained. The success of the event led to the launch of the Ottawa-based Lean Construction Institute – Canada (LCI – C) in 2015. Winslow is a founding board member. A volunteer group, LCI – Canada exists to “spread the word of continuous improvement in the planning, design, construction and building industry and to do that through the adoption of lean principles,” says Kathleen Lausman, LCI – Canada co-chair. LCI – Canada is hosting a lean construction conference in Toronto this spring. Construction on the Dr. F. H. Wigmore Regional Hospital was completed July 2015, with the grand opening on November 6, 2015. The facility is currently up and running. The main challenge in Moose Jaw was “the ability of the team to absorb the lean way of thinking and the lean tools. This is my first project using lean and it took me a couple months to embrace it. I have more than 25 years in the traditional construction world, so it took me a couple months to understand what this was. I think that was the way it was for everyone,” says Winslow. Once everyone grasped the concept, going lean saved time and money, he continues. Government officials “explained that this hospital should have taken five years from start to finish, and we did it in four. So it’s about a year ahead of what traditional construction would have allowed,” says Winslow. The lean approach shaved about 20 per cent off costs, he continues, a statement backed up by a March 2, 2015 article on the Global News website. The article was about how the Saskatchewan government saved money by switching to lean for health-care delivery. “Among the largest savings was $34 million in the Five Hills Health Region, mostly due to lean and [similar] initiatives at the new Moose Jaw hospital,” stated the piece. In Winslow’s opinion, the main obstacle holding lean back is the fact “it’s an unknown, it is different. Right now

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LEAN CONSTRUCTION In lean, input from end-users and other Big Room participants is used to find opportunities to eliminate waste. Doctors and nurses participated in design planning at the Moose Jaw hospital project to make sure patient areas were practical, comfortable and efficient.

OKANAGAN COLLEGE

many people see this as a risk. They don’t understand it. It’s different from what they do and how they do it. They don’t see the benefits.” That said, lean is growing in popularity: the number of lean construction

projects in Canada “has doubled every year since 2012” when the Moose Jaw project was launched, he states. Graham Construction, for its part, has gone on to accomplish “six or seven lean projects,” he adds.

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Gary McEwan worked on a lean assignment involving the renovation and expansion of classroom facilities in the trades complex at Okanagan College in Kelona, B.C. McEwan is the manager of special projects for Edmonton-based construction firm PCL. The $35-million college project began in February 2014. In addition to Big Room meetings, Pull Plans, 5S, and other lean principles, organizers at Okanagan College used “constraint logs” (determining upcoming constraints in the building process then developing solutions to overcome them) and “promises” (workers would make promises about upcoming tasks then would report on the outcome of these promises at group meetings, to use peer pressure to spur motivation). The renovations and new facilities were completed in early 2016, five months sooner than if the job was done by conventional means, says McEwan. He compares lean to LEED. While mainstream today, LEED was very much a fringe methodology when first introduced due to concerns over perceived cost and complexity. “Personally, I think lean is the only way to go these days … it really opens up communications, makes the team accountable,” adds McEwan. Winslow, who now spends much of his time working as a facilitator teaching lean methods, points out that lean can boost the bottom-line. “If we can do things in a way that truly allows us to be more efficient, why wouldn’t we be doing it? Why aren’t more groups adopting this, because it does nothing but good for a company? All you have to do is think a little bit differently from how you operate,” says Winslow.

Nate Hendley is a Toronto-based freelance writer and author. Send comments to editor@on-sitemag.com.

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CONSTRUCTION APPS

THE H

CONS

hen people ask “is there an app for that?” the odds these days are pretty good that the answer will be “yes”. Even in construction, which is not known for being on the leading edge of IT, there are apps for the most specialized tasks imaginable. Of course, acquiring an app and adopting one in an organization are two different matters. As we have frequently warned in these pages, software, more often than not, requires people to develop new skills and work habits, and furthermore, the new app has to be integrated into the existing IT infrastructure in order to achieve its full benefits. The danger of falling short on the integration front is that we create “islands of information”, that is, pockets of stored data that are not easily shared within the organization. This forces people to create time-consuming manual processes to move the information from one application to the other.

On the other hand, even the most fully integrated app will turn into a boondoggle if people won’t use it. A common problem is that organizations invest in solutions that look great in a demo, but don’t match the workflow and the culture out in the field. Partial adoption then leads to inconsistent processes and information, which in turn can create more harm than good. To explore this conundrum, we talked with Charles Cooper, whose background in this sphere is somewhat unique. In the past, he worked as a systems integrator, helping clients get a variety of apps talking to each other on a common platform. Today, he’s the founder and owner-operator of Huntsville, Ont. – based Muskoka Hydrovac, and, like most contractors, spends his days trying to find ways to make his business run more smoothly and efficiently. Cooper’s early experiences as an end user have been a mixed bag. On one hand, he’s impressed with the variety and power of solutions that are available. On the other, he is continually stymied by the lack

on integration capabilities of many cloud solutions. “One of the things that I’ve found really frustrating is the closed communities found in cloud-based solutions,” he says. “I went to the cloud to automate my back office, but instead I now have more manual process to move information between these cloud providers.” The cloud does, however, have a silver lining – it does make it incredibly easy to test new software with live users in order to determine if there is a good fit with the organization. There are no servers to buy, no software to install, and free trials in the majority of cases. Consequently, organizations can get a strong sense of how an app will work in their organization before going through a lengthy and expensive implementation process. “With many apps, you won’t get to the full level of efficiency if they’re not integrated, but they improve your efficiency drastically over not having the app altogether,” says Cooper. Our bottom line advice for 2017,

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E HOTTEST

NSTRUCTION

APPS therefore, is to go ahead and experiment, but beware of possible dead ends that won’t allow you to fully automate the processes you are taking on with your new app. Here are the top 5 areas to experiment with in 2017.

SPECIALTY CONSTRUCTION CALCULATORS Contractors are constantly estimating, and calculations can get quite complex, especially when the result is determined by the specific physical characteristics of the building material involved. Consequently, hundreds of apps have emerged for

A cautionary guide to adding business functionality in 2017 BY JACOB STOLLER

specialty estimating. Concrete is a popular example – programs like Xsec Structural Concrete and Construction Estimator are easily acquired online and loaded onto a smart phone. Some of these are very specific – there are apps to calculate, for example, all the deflections and pitches in the construction of a storm sewer. Other popular areas include carpet and flooring estimators such as MeasureSquare, roofing apps such as RoofGenius. com, which takes into account roof pitches and angles. There are also apps that help calculate highly technical matters such as the deflection in a steel beam.

“With many apps, you won’t get to the full level of efficiency if they’re not integrated, but they improve your efficiency drastically over not having the app altogether,” says Cooper.

Many of these, Cooper points out, are vendor specific, but are significant time savers. “If you’re very specialized, these apps makes sense,” says Cooper. “The app is a way to save you the call to the tech support team. Otherwise, it might take a day or two to get your answer.”

LEED CALCULATORS As environmental concerns find their way into the corporate agenda, more organizations are seeking LEED compliance for their projects, and expect contractors to support these efforts. The challenge is that LEED credits come from many sources, including materials, transportation, jobsite management, and design of the facility. Managing all of these parameters across multiple projects is particularly difficult. Sometimes, LEED calculation software is sold as modules for existing suites such as those by Procore or AutoDesk. Eadoc software includes a paperless LEED trackContinued on page 30 on-sitemag.com / 27

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CONSTRUCTION APPS Continued from page 27 ing tool as part of their project collaboration suite. Green Badger Software provides a comprehensive solution that allows contractors to track LEED performance across multiple projects and clients. (See On-Site, March 2016) Finally, vendors such as adhesive manufacturer Mapei offer LEED calculators specific to their products.

SITE SURVEYING AND INSPECTION With the entire workforce carrying around GPS devices and cameras on their mobile devices, there’s a stronger argument than ever for using apps to automate aspects of site surveying tasks. Phone apps like Canvas, SurveySnap, and Qube make it easy for surveyors to collect site-specific information, upload it to a hosted web portal, and create customized site reports for a variety of purposes. Site Survey Pro allows users to measure distances of up to 100 feet without a tape measure. One of the most tedious survey tasks

for many contractors is the required process of locating underground infrastructure such as gas lines and electrical conduits prior to excavating. “Doing ‘locates’ is quite cumbersome, because of getting all the paperwork to all the people in order to be compliant,” says Cooper. The available locator apps, Cooper notes, use U.S.-based models that are not applicable in Canada. He hopes, however, that a new app under development through OneCall Ontario may provide some muchneeded improvement. Unfortunately, they don’t appear to be planning to create API’s so that locator information can be shared with other apps. Site survey technology is poised to improve dramatically as drones and laser measurement devices become more prevalent and affordable as survey tools, so this is a good field to watch.

FLEET MANAGEMENT The truck is one of the most common pieces of construction equipment and represents a significant investment for most contractors, yet few do an adequate job of tracking that investment. GPS-enabled fleet management apps help contractors collect data on trucks, cranes, and backhoes, and store the information on sophisticated databases that support a variety of management reports. A key advantage is that these apps help manage maintenance scheduling and workflow. An app can send out automatic notifications when maintenance is due, and can warn contractors to check maintenance when sending a driver out to a remote area. They also allow contractors to calculate the ROI of a new piece of equipment by revealing the true operating cost. Then there’s the legal compliance side.

“I plow sidewalks in the town of Huntsville, Ont., and I need to leave a GPS trail to demonstrate that I’ve hit the sidewalks when I say I did,” he says.

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user-friendly to encourage even the most entrenched technology resistors to comply. They are also available through free trials, and are easy to experiment with for a few users. For Cooper, one of the advantages of “going electronic” here is being able to use the data to measure business performance. “It helps me answer questions like ‘which is profitable?’ or ‘how do I get better?’” The catch, is that it’s much easier to equate labour costs with income when the app is integrated with the financials. Cooper, who has adopted Freshbooks for his financials, uses their module for time tracking. “I use the Freshbooks time tracking tool so I can identify costs back to my income,” he says. “There’s no way I could poll that data from another app.” Cooper, who uses a fleet management app called Focus, keeps his tracking data in case of a dispute or lawsuit. “I plow sidewalks in the town of Huntsville, Ont., and I need to leave a GPS trail to demonstrate that I’ve hit the sidewalks when I say I did,” he says. The app also tells him which crew is on a vehicle at any point, and which attachments on the equipment are being used, so he can monitor if the work is being done properly, and assess the relative performance of the various crews. “That’s big for me because I have limited assets. My plow is run by four different people,” he explains. Still, there’s lots of room for improvement. Cooper hopes in the near future, the data will be accessible by different apps so he can share it with customers. Geo-fencing,

which automatically links equipment activity to a customer according to GPS information, can only be set up as a customization to the program.

TIME TRACKING AND SCHEDULING Every contractor needs to track the hours of its workers, and the majority use paper, Excel spreadsheets, or a combination of the two. These manual methods are tedious, require cooperation from a large number of people, and worst of all, rely on human memory. Time tracking software can replace the tedium and chaos with a much more accurate method of data collection. Apps like ClockShark and ExakTime, which we discussed in detail in the June 2016 issue, offer free trials, and are intuitive and

MAXIMIZE

WRAP UP The functionality available for contractors today is staggering compared with even a decade ago, and cloud-based implementation and free vendor trials make experimentation easy. While integration remains a huge challenge, contractors can take advantage of this dramatically lower barrier of entry to avoid the biggest potential pitfall of all – the implementation of an app that will fail because users won’t use it. Good luck!

Jacob Stoller is principal of Toronto-based consultancy StollerStrategies. Send comments to editor@on-sitemag.com.

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SHOW PREVIEW

WHAT YOU NEED TO KNOW ABOUT CONEXPO-CON/AGG 2017 CONEXPO-CON/AGG – Where every major construction industry is represented amongst 2,500+ exhibitors over 2,500,000 square feet and more than 150 education sessions including asphalt, aggregates, concrete, earthmoving, lifting, mining, utilities and more. WHAT’S NEW FOR 2017 • The Tech Experience: Visit the new 75,000+ square foot Tech Experience at CONEXPO-CON/AGG 2017, see the future of the construction industry, and uncover how your business can become more profitable and more efficient • Nearly 700 new exhibitors • New Badge-Pack that includes: - Free Las Vegas Monorail multi-day pass - Free deluxe coach bus to and from the show to most hotels - Access to seven different halls/lots for CONEXPO-CON/AGG and IFPE on all 5 show days - Discounts at various Las Vegas bars and restaurants - Entry to the new Tech Experience • New technology that helps you keep track of exhibitors you visited and who you want to follow-up with • New education including tracks on technology, business management, workforce development, and more • CONEXPO-CON/AGG Radio - Join CONEXPO-CON/AGG Radio each Tuesday at 10 a.m. central to look at the future of equipment technology through the eyes of the construction market

THINGS TO DO • Construction Community Gives Back - To benefit The Call of Duty Endowment,

- CONEXPO-CON/AGG AND IFPE are hosting benefit auctions and a benefit concert with 100 per cent of proceeds going to the Call of Duty Endowment. •

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ATTENDANCE BY BUSINESS TYPE Contractors 63% Producers 5% Dealers $ Distributors 17% Government 1% Mining 4% Manufacturing 7% Service Providers 3%

SHOW HOURS • • • • •

Tuesday, March 7 - Friday, March 10 Exhibits 9 a.m. to 5 p.m. Saturday, March 11 Exhibits 9 a.m. to 3 p.m. Times are Pacific Standard Time (PST).

WHO EXHIBITS Decrease downtime and increase efficiencies with new products and technologies from more than 2,500 exhibitors in all major construction industries including asphalt, aggregates, concrete, earthmoving, lifting, mining, utilities and more. Visit http://conexpoconagg.com/ to see a complete list of who is exhibiting.

WHO ATTENDS From contractors to dealers & distributors, service providers, engineers and producers, CONEXPO-CON/AGG brings construction professionals from across all disciplines. No other show’s attendees represent more sectors of the construction industry than CONEXPO-CON/AGG.

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OnSite_

IMAGINE WHAT’S NEXT. Register today to get the ultimate view of where construction is going. Imagine less downtime. Imagine being more efficient. Imagine seeing what’s next from over 2,500 exhibitors spread out over 2,500,000 square feet. Imagination becomes reality in Las Vegas on March 7–11, 2017— and if you make your reservation right now, you can ensure your spot at this huge event... and save!

March 7–11, 2017 | Las Vegas Convention Center | Las Vegas, USA

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2017 OVERVIEW MAP

3 15

Earthmoving, Equipment & Material Handling:

Asphalt Production & Paving

• Gold Lot • Gold Hall • North Hall • Central 1-2

• Bronze Lot • South Hall 1-2 • Bronze Hall

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• Gold Lot • Silver 2 • Central 1-2

Landclearing:

• South 4 • Bronze Hall • Bronze Lot • Gold

BRIDGE MEETING COMPLEX

• South Hall 1-2 • Bronze Lot • Gold Hall • Bronze Hall

Information Technology & Business Solutions:

• Bronze Lot • South Hall 1-2

Infrastructure Support:

BRONZE HALL/LOT

CENTRAL HALL 1-2

• Gold Lot • Gold Hall • North Hall • Central 1-2

Lifting (Ariel & Cranes):

• Central 1-2 • Gold Hall • Gold Lot

Hauling Equipment:

SOUTH HALL 1

SOUTH HALL 3

CENTRAL HALL 3-5

• South Hall 1-2 • Bronze Lot

Trucking:

• South Hall 1-2 • Bronze Hall • Gold Hall • Bronze Lot

Safety & Traffic:

2 5

• South Hall 3-4

IFPE:

Underground Construction: • Silver 1-2 • Central 3-5 • Bronze Hall

SOUTH HALL 2

SOUTH HALL 4

1 3

10 College Courses (IFPE)

5 Info Booth

9 Food/Beverage

15 Uber/Lyft

8 Taxi

3 Tram 4 Info Booth

WESTGATE CONVENTION CENTER

7 9 GRAND LOBBY 6

10 12

Engine, Components, & Electronics:

SOUTH HALL LOBBY 4

4 5

Concrete Construction & Manufacturing:

SILVER LOTS

THE NEW TECH EXPERIENCE

Aggregates Processing:

4 15 14

3 NORTH HALL 4

13 Tech Talks 14 Beer Garden

7 International Trade Center (ITC)

2 Hotel Shuttle

16 NASCAR

11 EEHPC (IFPE) 12 CONEXPO-CON/AGG Education

6 Show Store

1 Registration Area

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CONEXPO Product Preview ONE PLATFORM, TWO ADDITIONS B2W Software will demonstrate its ONE Platform at CONEXPO-CON/ AGG 2017, highlighting two additions to the unified solution for heavy civil construction estimating and operations. B2W Schedule is designed for scheduling and dispatching. The Inform application is used to create and manage forms and to mine data for reporting and alerts. ONE Platform applications communicate with each other in real time and use a single source for operational data, empowering employees to maximize efficiency, collaborate across workflows and make data-driven decisions. BOOTH: S65228

BIG CAPACITIES IN A PORTABLE PLANT The Terex CRC1150S portable closed circuit plant features the TC1150 300 HP Cone Crusher and the TSV6203 6’ x 20’ 3 deck screen. This plant offers big capacities in a highly portable plant. Other key features include: TSV6203 triple shaft high g-force screen; compact low-maintenance “walkover” flex shaft screen drive; quick release, hopper with integrated overflow chute system; and Tri-axle suspension with 57.5-in. axle spacing. It also offers 4-section, blending system, to mix 2nd and bottom decks products. BOOTH: G3882

ZERO TAIL-SWING

OUTRIGGER PADS PROVIDE SOLID FOUNDATION DICA’s SafetyTech outrigger pads provide a strong, rigid and easy to use foundation for a wide variety of outrigger enabled equipment, including mobile cranes, digger derricks, hi-lift aerials and concrete pumps. Constructed of a proprietary engineered thermoplastic material, SafetyTech pads have crush ratings up to 750 psi and rated capacities up to 325,000 lbs. BOOTH: G4022

The Hyundai R30Z-9AK compact excavator features a zero tail-swing design for optimum maneuverability in confined work spaces. It is powered by a 17.3-kW (23.2-hp) Kubota engine, and its operating weight is 2,894 kg (6,380 lbs.) configured with a canopy, and 3,003 kg (6,620 lbs.) configured with an enclosed cab. Other specs include the following: swing speed is 9.1 rpm; travel speed range is 3.9 to 6.9 km/h (2.4 to 4.3 mph); maximum dig depth is 2,490 mm (8 ft. 2 in.); maximum dig reach is 4,648 mm (15 ft. 3 in.); standard bucket capacity is 0.076 cu m (0.10 cu yd); and bucket break out force is SAE 17.9 kN (4,030 lbf). BOOTH: N11603

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SHOW PREVIEW POSITIONING SYSTEM REDEFINES MACHINE CONTROL 3D-MCMAX is the next generation of Topcon dozer grading solutions that redefines the concept of machine control. The system is driven by dual IMUs (Inertial Measurement Unit) to increase on-grade performance where speed and blade response is maximized, while eliminating the need for a mast on the blade. It provides high-accuracy elevation, slope, and blade rotation sensing in an integrated configuration. Operators work confidently in rough or fine grade applications, slope conditions, and in restricted sight environments without the visual obstruction of masts or risks to hanging cables. BOOTH: N12702

DRIVE SYSTEM BOOSTS EFFICIENCY Liebherr’s XPower is an integrated, innovative machine concept for the large series of wheel loaders with operating weight from 39,020 lbs. – 71,870 lbs. (L550-L586). The concept sets new standards in terms of fuel efficiency, performance, robust design and comfort. The core of the XPower is the Tier 4 Final/Euro Stage IV power-split driveline installed as standard. It combines hydrostatic drive, which is ideal for short loading cycles and mechanical drive for long distances and when driving on slopes. The combination of both drives ensures maximum efficiency and outstanding fuel savings. BOOTH: S84230.

PROCESSES WET OR DRY MATERIAL FAST The ALLU Group’s D-Series Screener Crusher bucket screens, crushes, pulverizes, aerates, blends, mixes, separates, feeds and loads materials all in one stage – increasing an operation’s efficiency and profitability. The unit is designed to process wet or dry materials quickly and efficiently, reducing cycle times and resulting in increased production and substantial cost savings. BOOTH: G3749

JACKED UP LIFTING SYSTEM ENERPAC’s JS250 Jack-Up System is a custom developed multipoint lifting system. It has a lifting capacity of 280 tons (2500kN) per tower with a maximum side load 3 per cent at 10m, and lifting height of 10m. The main features include self-contained hydraulics in each jack-up unit for uncluttered work area and the ability to synchronously lift loads with multiple Jack-Up units. The most common system set-up includes four jack-up units. BOOTH: G1127

IDEAL FOR TIGHT OVERHEAD CONDITIONS With a maximum theoretical output torque of 10,378 ft.-lbs., the new Digga MM-10K anchor drive is engineered for use on mini loaders, skid steers and excavators. The new planetary gearbox-driven Anchor Drives work effectively on auxiliary flows of up to 18.5 GPM to accommodate the wide range of units on the market, and comes complete with a unit-specific mounting plate for easy installation and set-up. The Model MM-10K Drive is ideal for the tight overhead conditions of most helical piling applications, and was specifically designed for applications where dual axis 4-way swing capabilities (FWD-REV-LFT-RGT) are required. BOOTH: C21059

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SHOW PREVIEW MORE DEMOLITION POWER The BROKK280 features increased demolition power over its predecessor. It includes the all-new BROKK SmartPower electrical system, and incorporates additional hardened parts for extra durability in tough environments. The improvements increase the reliability and versatility for Brokk customers working on harsh jobsites. BOOTH: B90703

PORTABLE, POWERFUL AND TOUGH

COMPACT DESIGN EXPANDS VERSATILITY

Chicago Pneumatic’s Red Rock CPS 110 portable air compressor is powerful and tough. The lightweight machine can power two breakers with ease, and works effectively in the harshest conditions. The compressor’s canopy is made from extra-tough polyethylene. This protects the working parts and ensures the CPS 110 performs to its maximum capabilities. It offers a normal effective working pressure of 100 psi at 110 cfm. BOOTH: C31727

Caterpillar’s M317F wheeled excavator offers a compact radius design that expands versatility and enhances productivity in tight work areas. It delivers the same capabilities and efficiencies as its standard radius counterparts. The 390F and 336F XE excavators, both with crawler undercarriages, have been updated to deliver improved productivity and lower costs. Both machines lead their size classes in fuel efficiency. BOOTH: N10924/G4490

LASER HELPS GRADE TO TIGHT TOLERANCES QUICKLY LOAD EQUIPMENT FOR TRANSPORT XL Specialized Trailers’ XL 80 Power Tail trailer is ideal for transporting medium-duty construction equipment. It features a hydraulic fold-under flip tail ramp for quick loading and unloading. With a load angle of 10 degrees, the hydraulic tail is equipped to easily handle man lifts, rollers, forklifts and paving equipment. The XL Power Tail is rated at 80,000 lbs. overall and 50,000 lbs. concentrated in 10 ft. The tail has a lifting capacity of 25,000 lbs. for loads centered on the main platform. BOOTH: G2416

Worksaver Inc.’s patented SSGB-8B grader is designed for asphalt, landscaping, and concrete flatwork contractors. The unit has an 8-ft., six-way hydraulically controlled moldboard operated by an in-cab remote. With an optional laser system, the grader will maintain grade to tight tolerances. BOOTH: G3749

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SHOW PREVIEW ADT OFFERS SUPERIOR TRACTION The Doosan DA40-5 articulated dump truck offers excellent driving stability, equal weight distribution and superior traction along with additional load capacity, superior power and better productivity. Its flexible and agile undercarriage ensures all six wheels have permanent ground contact, so you can achieve extreme performance in off-road conditions. BOOTH: G4876/G4476

VOLVO INTRODUCES A45 ARTICULATED HAULER Volvo expands its articulated hauler lineup with the A45G. The 45-ton payload machine is built on a dimensionally smaller, lighter, more agile platform than other 45-ton trucks, making the machine more nimble, off-road capable and fuel-efficient. On-board weighing comes standard, and requires no operator intervention. Three indicator lights alert the hauler and excavator operator when nominal load is reached. BOOTH: G3894/N10036

POSITIONS SCREEN AT OPTIMAL ANGLE Haver & Boecker’s new, portable F-class vibrating screen offers increased mobility to maximize flexibility and ROI for aggregate and mining operations. Each portable F-Class features a base frame that easily attaches to a custom-built chassis. The portable plant includes a hydraulic system that positions the vibrating screen at the optimal angle. These features allow producers to move and setup the portable F-Class in less than 30 minutes in nearly any location. BOOTH: S5832

AGGREGATE HANDLERS DELIVER EXCEPTIONAL POWER The John Deere wheel loader family welcomes the addition of the 844K Series-III and 844K Series-III Aggregate handler configurations. These machines offers a 13.5L John Deere PowerTech Final Tier-4 diesel engine that delivers exceptional power at 380 hp for the 844K-III and 401 hp for the aggregate handler configuration. The models are equipped with a standard five-speed transmission with torque-converter lockup in gears two through five. BOOTH: N12525

DUAL-POWERED COMPACT EXCAVATOR Takeuchi’s first hybrid dual-powered compact excavator, the TB216H, features both an electric motor and diesel engine with its own pump group to power the machine’s hydraulics. Machine performance is consistent regardless of the power source. In diesel mode the machine is powered by a Yanmar Tier-4 Final engine, that offers an output of 14.9 hp. For emissions-free environments, the machine can be powered by the 14.2 hp electric motor. BOOTH: C20753

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SHOW PREVIEW LOW COST OF OWNERSHIP Case Construction Equipment's all-new G Series wheel loaders, span seven new models scaled for work ranging from supply yards, building construction and agriculture up to quarries and mass excavation. The entire product line is now Tier-4 Final compliant, featuring Selective Catalytic Reduction (SCR) engine technology that increases fuel efficiency, keeps exhaust temperatures down and eliminates regeneration or lifetime diesel particulate filter (DPF) costs/maintenance. The operator environment, controls and interface make the G Series the most intuitive and easy-to-operate wheel loaders CASE has ever produced. Efficiencies in power/output, maintenance and operator ergonomics/interaction – combined with CASE ProCare – provide an exceptionally low and predictable total cost of ownership/productivity. BOOTH: N11825

LONG AGGREGATE DRYING AND MIXING TIMES Asphalt Drum Mixers, Inc. offers its EX Series asphalt plants with single-drum counterflow technology. The compact plants boast the longest aggregate drying and mixing times in the industry. The EX Series asphalt plants produce 100 to 425 tons of material per hour at a low cost per ton. The plants are also capable of processing as much as 50 per cent RAP. BOOTH: S5428

Check out these Heavy Features • Snow & Ice Removal • The Rental Pavilion • Recruiting Here • OHMPA Spring Operation Seminar • Safety Products • Educational Program And don’t miss the Gravel Pit &

Top 10 Under 40!

Stay tuned to our website for updates:

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Built to OUTLAST OUTWORK OUTDO

What do you expect from a loader? How about a performance beast without the maintenance burden? Wacker Neusonâ€™s new line of medium frame skid steer and compact track loaders feature an industry leading hinge pin height, exceptional hydraulic power and engine torque, and a superior capacity fuel tank to help you get more done in less time. Even better, youâ€™ll see a lower total cost of ownership with easy service access and a DPF-free, regen-free Tier 4 Final engine with an unmatched 4-year/4,000 hour warranty. Add to that an intuitively-designed, high visibility cab and you have a loader that is built to last as long, work as hard, and do as much as you do. Contact your Wacker Neuson dealer today.

Booth #G3435 Gold Lot

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www.wackerneuson.com 1-800-201-3346

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FEBRUARY 2017

AND THE WINNERS ARE... ONTARIO CONCRETE AWARDS RECOGNIZE INDUSTRY INNOVATORS PG. 53

IN THIS ISSUE: www.on-sitemag.com 50 Concrete

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News | 51 2017 World of Concrete Wrap Up

2017-02-03 11:56 AM

WOC WRAP-UP By Corinne Lynds

World of Concrete wrap up

Toronto Chapter ‘Pretty good show’ for a CONEXPO year

or more than 40 years, World of Concrete (WOC) has been the must-attend show for concrete aficionados. Those contractors that have been making the annual trek to Las Vegas every January for decades, will tell you that WOC often isn’t quite as robust every third year when CONEXPO-CON/AGG rolls into town just six short-weeks later. There were a few notable gaps on the show floor this year, but exhibitors and attendees alike agreed: “it was a pretty good show, for a CONEXPO year.” Although the show floor may not have been as packed as some exhibitors would have liked. They were impressed with the quality of the attendees. More than one sales rep told me: “People are buying.” This year’s show, took place a little earlier than usual, running January 17 to 20 at the Las Vegas Convention. The industry’s only annual international event dedicated to the concrete and masonry industries, WOC drew 50,770 registered professionals and featured more than 1,455 companies exhibiting across more than 681,196 sq. ft. of convention space, according to show organizers. These numbers are down a little from last year. In 2016 there were 60,110 attendees and 1,532 exhibitors over 67,000 sq. ft. Despite the dip from last year, show organizers were upbeat: “We are very pleased with the results of this 2017 event,” said Tom Cindric, sr. vice-presi-

dent, Informa Exhibitions U.S., Construction & Real Estate. “As the construction industry continues with its upward momentum over the past few years, World of Concrete has successfully kept pace, providing the industry with the latest products, technologies, and educational offerings. This once again positions WOC as THE event for concrete & masonry professionals.” Jackie James, director, World of Concrete added: “Exhibitors & attendees seemed very pleased with WOC 2017 from

the show floor to the educational opportunities. Although the show was earlier than in past years, the industry showed up in force to see new products, network with their peers, and prepare for business in 2017. International attendance was strong with representation from India, Italy, Philippines, Costa Rica, Brazil, China, Japan, South Korea, Chile, Argentina and many other countries.” WOC 2018 will take place January 23-26; Seminars 22-26 at the Las Vegas Convention Center.

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CONCRETE NEWS

International Concrete Repair Institute announces new chapter

he International Concrete Repair Institute (ICRI) has announced the formation of its third chapter in Canada, with the new Toronto chapter open for membership. The Toronto chapter will join members of the British Columbia and Quebec Province chapters in serving the concrete repair industry in Canada. With more than six million residents, Greater Toronto is the largest population centre in Canada. With the announcement of the new chapter, ICRI officials also named officers for Toronto, with Stephen Franks of Blok-Lok Limited in Woodbridge, Ont., serving as president, Stephan Trepanier of Edison Engineers, Inc., in Markham, Ont., serving as secretary and David Huggins of Kelso Coatings in Milton, Ont., serving as treasurer. The chapter has a website where people can get more information, www. icritoronto.com. “There is strong demand in the design and construction industry to bring more technical resources to the concrete repair industry in Ontario,” said Huggins. “We look forward to leveraging the vast

resources of ICRI to ensure long life-cycle repairs throughout the GTA and the Province of Ontario.” Currently, ICRI has 38 chapters, including two student chapters, in metropolitan areas around the world. The chapters hold technical presentations, educational meetings, symposiums and local conventions on repair-related topics. Chapters also provide members with opportunities to meet and network with repair specialists in their regions. Chapters commonly host golf outings, social evenings, dinner cruises and other networking events.

“It’s an exciting time for ICRI, with the growth in our membership ranks confirmed in the addition of the Toronto chapter,” said Mark LeMay of JQ Engineering in Fort Worth, Texas. He serves as ICRI’s Chapter Committee Chair. “The Greater Toronto metro area and all of Ontario will be wellserved by our members in the region, and we look forward to continued growth and service to the industry in Canada.” More information on ICRI’s Toronto chapter, including membership information and upcoming events, can be found on the ICRI website.

LAFARGE CANADA RECOGNIZED AS ONE OF CANADA’S TOP EMPLOYERS FOR YOUNG PEOPLE Lafarge Canada, along with 99 other Canadian firms, was recognized as a winner of the 2017 Canada’s Top Employers for Young People competition. Now in its 15th consecutive year, Canada’s Top Employers for Young People is an editorial competition that recognizes the employers that offer the nation’s best workplaces and programs for young people at the beginning of their careers. The winning employers lead the nation in attracting and retaining younger employees to their organizations. “We read a lot about disruption and the need for organizations to adapt their business models to rapidly changing technology and consumer behavior,” says Richard Yerema, managing editor at Mediacorp and Author of the student guide The Career Directory, Canada’s longest-running career guide for students. “Younger employees understand this instinctively and look for employers that want to

re-invent their products and services for today’s market.” Winners of the competition are chosen by the editorial team at the Canada’s Top 100 Employers project on the basis of the programs and initiatives they have to attract and retain younger workers. These include benefits such as tuition assistance and the availability of co-op or work-study programs. The editors also examine each employer’s mentorship and training programs, including benefits such as bonuses paid when employees complete certain courses or professional designations. They review each employer’s career management programs, looking for initiatives that can assist younger workers to advance faster in the organization. Lastly, the editors consider the average age of employees at each employer to assess the composition and profile of their workforce. The 2017 winners were published nationally in The Globe and Mail. on-sitemag.com / 51

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QUIKRETE® is Canada’s top choice for building the strongest projects and bringing old ones back to life. With 6 manufacturing plants and over 200 professional-grade products, QUIKRETE has what you need for your next residential or commercial concrete construction job, no matter the size. QUIKRETE, What Canada’s Made Of. To place your order today, call 1-800-575-7700.

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CONCRETE AWARDS

And the winners are… 2016 Ontario Concrete Award winners include complex Milton interchange

ontractors, architects and engineers gathered for the 2016 Ontario Concrete Awards dinner on November 30 to celebrate the success of their joint efforts. The event was held at the Metro Toronto Convention Centre downtown in conjunction with Construct Canada. The awards recognize design and construction innovation and excellence using the industry’s most ubiquitous material, and in a variety of different building types and applications. Clive Thurston, president of the Ontario Contractors Association, presented awards to the following recipients:

1. ARCHITECTURAL MERIT QUEEN RICHMOND CENTRE WEST Owner: Allied Properties REIT Architect of Record: Sweeny & Co. Architects Inc. Engineer of Record: Stephenson Engineering Ltd. 3 General Contractor: Eastern Construction Company Ltd. Forming Contractor: Alliance Forming Ltd. Material Supplier: St Marys CBM Additional Participants: Aluma Systems, BASF Canada Inc., Carpenters Local 27, Ecovert, Gilbert Steel Ltd., Ironworkers Local 721, LIUNA Local 506, United Floor Ltd. Location: Toronto

2. ARCHITECTURAL HARDSCAPE ROUGE CREST PARK Owner: Town of Richmond Hill Architects of Record: Schollen & Company Inc./Town of Richmond Hill Engineer of Record: Engineering Link Inc. General Contractor: Rutherford Contracting Ltd. Material Supplier: Dufferin Concrete, a division of CRH Canada Group Inc. Additional Participants: Alpha Precasts, Curbside Construction, Euclid Canada, LIUNA Local 183 Location: Richmond Hill

3. INFRASTRUCTURE DERRY ROAD/CN GRADE SEPARATION Owner: Halton Region

Engineer of Record: R.V. Anderson Associates Ltd. General Contractor: New-Alliance Ltd. Material Supplier: Dufferin Concrete, a division of CRH Canada Group Inc., Con Cast Pipe Additional Participants: Deep Foundations, Euclid Canada, Harris Rebar, Ironworkers Local 736, LIUNA Local 183 Location: Milton

4. INSTITUTIONAL BUILDING REACTOR MATERIALS TESTING LABORATORY Owner: Queen’s University Architects of Record: Diamond Schmitt Architects/Shoalts & Zaback Architects Ltd., in Joint Venture Engineer of Record: Read Jones Christoffersen Ltd. General Contractor: T.A. Andre & Sons (Ontario) Ltd. Material Supplier: Sousa Ready Mix Additional Participants: Carpenters Local 249, Du Toit Allsopp Hillier, HH Angus, Ironworkers Local 765, Josselyn Engineering Inc., Kimco Steel, LIUNA Local 183 (Kingston), Sika Canada Inc., Turner & Townsend Inc. Location: Kingston on-sitemag.com / 53

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CONCRETE AWARDS

5. MATERIAL DEVELOPMENT & INNOVATION

8. STRUCTURAL DESIGN INNOVATION

RIVER CITY CONDOMINIUM PHASE 2 Owner: Urban Capital Architects of Record: Saucier + Perrotte Architects, ZAS Architects Engineer of Record: Adjeleian Allen Rubeli Ltd. General Contractor: Bluescape Construction Management Inc. Forming Contractor: Vuemont Structure Material Supplier: St Marys CBM Additional Participants: Aluma Systems, BASF Canada Inc., LIUNA Local 183, Salit Steel Location: Toronto

AUDI MIDTOWN TORONTO Owner: Audi Canada Architect of Record: Teeple Architects Inc. Engineer of Record: Read Jones Christoffersen Ltd. General Contractor: Eastern Construction Company Ltd. Forming Contractor: Avenue Building Corp. Material Supplier: Dufferin Concrete, a division of CRH Canada Group Inc. Additional Participants: Aluma Systems, Carpenters Local 27, Euclid Canada, Gilbert Steel, Ironworkers Local 721, LIUNA Local 506, Peto MacCallum Ltd. Location: Toronto

6. MID TO HIGH RISE RESIDENTIAL THE ONYX AT THE BARREL YARDS Owner: Auburn Development Inc. Architect of Record: Turner Fleischer Architects Inc. Engineer of Record: HGS Ltd., Consulting Engineers General Contractor: Stonerise Construction Inc. Forming Contractor: Redline Structures Inc. Material Suppliers: Stubbe’s Precast, Hogg Fuel & Supply Ltd. Additional Participants: Aluma Systems, Sika Canada Inc. Location: Waterloo

7. SPECIALTY CONCRETE CONSTRUCTION CONCRETE HOUSE Owners: John Pylypczak and Diti Katona Architect of Record: Angela Tsementzis Architect Engineer of Record: Blackwell Structural Engineers General Contractor: Marcus Design Build Material Supplier: Innocon Inc. Additional Participants: BASF Canada Inc., Buidling Science Consulting Inc., LIUNA Local 183 Location: Toronto

9. SUSTAINABLE CONCRETE CONSTRUCTION W. ROSS MACDONALD SCHOOL – SENIOR STUDENT RESIDENCE FOR THE BLIND AND DEAF-BLIND Owner: Ministry of Infrastructure/Infrastructure Ontario, Ministry of Education – Provincial Schools Branch Architect of Record: MMMC Architects Engineer of Record: Tacoma Engineers General Contractor: PCR Contractors Inc. Material Supplier: St Marys CBM Additional Participants: BASF Canada Inc, Carpenters Local 785, EllisDon Corp., LIUNA Local 1081 Location: Brantford

Send comments to editor@on-sitemag.com.

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OnSite_S

TS 420 & TS 500i STIHL Cutquik®

TS 420

The STIHL TS 420 is a light and convenient 3.2 kW cut-off saw with a 350 mm cutting wheel for use on all types of jobs. The innovative long-life air filter system with cyclone air routing ensures an extremely long filter service life and increases service intervals. Low vibration levels makes working with this model less strenuous. The TS 500i is equipped with STIHL’s fuel injection technology which provides a simplified starting procedure - no choke, just purge and pull. It combines precision, efficiency and user-friendliness with cutting-edge technology. The X2 low-maintenance air filtration system allows filters to enjoy a long service life and ensures effective engine protection. Its electronic water control remembers the last setting used - water flow adjusts easily while in operation and no water at idle. So you can focus on what matters most - your work.

Displacement Power Output Weight * Max. Wheel Size Max. Cutting Depth

66.7 cc 3.2 kW 9.6 kg/21.2 lb 14”/350 mm 4.9”/125 mm

TS 500i

Displacement Power Output Weight * Max. Wheel Size Max. Cutting Depth

72.2 cc 3.9 kW 10.2 kg/22.5 lb 14”/350 mm 4.9”/125 mm

* Without fuel and cutting wheel.

FREE

DIAMOND WHEEL WITH THE PURCHASE OF A

STIHL CUTQUIK® SAW

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QUALITY AT WORK FOR OVER 90 YEARS. For over 90 years, STIHL has been a world market leader and innovator in outdoor power equipment. German engineered products featuring the latest pioneering technologies make STIHL the preferred choice for professionals, consistently providing uncompromising quality. STIHL products are only available at independent STIHL Dealers who provide personal advice and expert service. Thank you for the continuous support and for making STIHL the brand you trust.

* “#1 Selling Brand in Canada” is based on an independent market share analysis of gasoline-powered handheld outdoor power equipment from 2016. Source: TraQline Canada.

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stihlclub.ca

www.stihl.ca

2017-02-03 2017-01-27 11:56 1:36 AM PM

RISK By David Bowcott

Material risk events in P3s: 2011 vs. 2016

s some of you may be aware, the firm I work for (Aon) has more than 2,500 construction clients, and 13 of the top 15 Canadian contractors as clients. We have also acted as risk advisor and broker to a majority of the major projects in the Canadian market. One area where we have particularly strong penetration is the Public-Private Partnership space (P3s), where we have acted as risk advisor and broker to more than 85 per cent of all P3s that reached financial close. Given that P3 market share, we’re able to compile claims data to a statistically significant level, and thus give the industry an accurate picture of where the risks are manifesting in the P3 space. It should be noted the P3 space does enjoy a tremendous track record of success when it comes to on-time and on-budget delivery, and the loss ratios for most lines of cover, in both construction and operations, are strong. So, what have we done with all of this data? Well, we are working on it. For example, in 2011 we did a study that tracked the frequency of material risk events on P3s and most recently, and as a follow-up to our 2011 study, we completed our assessment

of material risk events on P3s up until 2016. By putting the 2011 results beside the 2016 results we are given a trend perspective. The following are the results of those two studies, which I had the pleasure of presenting to the Canadian Council for Public Private Partnerships at their annual conference in November. When viewing the above information you should know, most of our data came from claims that were reported under policies we placed into the insurance market. We then took that data and uncovered the apparent root-cause of loss related to each claim. Of note, some of the claims were not insured; however, we were made aware of these uninsured material risk events through our business dealings and extensive network within the construction and P3 communities. So what do the below graphs tell us? The most obvious trend we can see from this data is professional risk events and workmanship risk events are on the rise. In 2011 the combination of professional events and workmanship events accounted for 60 per cent of all risk events. In 2016 we see that 70 per cent of all risk events are attributed to these two root-cause catego-

MATERIAL RISK EVENTS IN CANADIAN P3S: 2011 COMPARED TO 2016

ries. It should be noted, that professional events are most often design failures or failures to render professional services. As well, the workmanship events are failure of the prime contractor and most often failure of the subcontractor or supplier to deliver on their contracts as per proposed schedule, budget or quality. Some additional insight not shown in the graphic — professional events accounted for 67 per cent of all risk events on civil jobs, however, they only accounted for 29 per cent of all risk events on social (or buildings) jobs. Though there are other insights I would love to share, I want to focus on this size and the upward trend in professional and workmanship risk events. I’ll say it again, 70 per cent of all material risk events on Canadian P3s were related to professional or workmanship risk events. Given this large number it makes a lot of sense for governments, concessionaires, design firms and contractors to have a sit-down in order to investigate why this number is as large as it is. I think we all have suspicions as to what is causing this growth in frequency and it’s clear that frank and transparent communication between key stakeholders is needed. In my next article I’ll put forward some thoughts on what I believe is making this number so large, what is causing the number to grow, and, further, potential solutions that could be put in place to minimize the frequency (and severity) of professional and workmanship risk events. I’m confident that effective communication will be a vital ingredient in any solution put forward to successfully reduce these numbers.

David Bowcott is Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions. Please send comments to editor@on-sitemag.com.

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ADVERTISERSâ€™ INDEX & WEBSITES Adrian Steel....................... www.AdrianSteel.com......................................24

Kobelco.............................. www.KobelcoConExpo.com...............................13

B2W Software..................... www.b2wsoftware.com....................................17

LBX Linkbelt....................... www.lbxco.com................................................23

BKT Tires Canada Inc......... www.bkt-tires.com...........................................25

NHES.................................. www.nhes.ca...................................................47

CMiC.................................. www.cmicglobal.com.........................................6

Quikrete............................. www.quikrete.com...........................................52

CONEXPO........................... www.conexpoconagg.com................................35

Stihl................................... www.stihl.ca....................................................55

Detroit Diesel..................... www.DemandDetroit.com/dd13.........................4

Takeuchi............................. www.takeuchi-us.com.....................................41

Doosan Infracore................ www.DoosanEquipment.com............................32

Topcon................................ www.topconpositioning.com/CONEXPO............31

Doosan Portable Power....... www.doosanportablepower.com.......................21

Towmaster.......................... www.towmaster.com........................................57

Freightliner........................ www.freightliner.com/75years...........................2

Volvo Construction............. www.volvoce.com.............................................42

Hyundai.............................. www.hceamericas.com....................................60

Volvo Trucks....................... DoWork.VolvoTrucks.ca.....................................48

InSite Software................... www.insitesoftware.com..................................12

Wacker Neuson................... www.wackerneuson.com..................................44

John Deere.......................... www.JohnDeere.com/SmartGrade......................9

Western Star....................... www.westernstar.com/50.................................28

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CONTRACTORS & THE LAW By Krista Johanson

An estimate is never “just an estimate”

isk allocation under cost-plus contracts is not always well understood by the parties who enter into them. Contractors sometimes believe they are entitled to payment for all costs incurred to perform the work, and owners sometimes believe a contractor is obligated to deliver the project at or below the cost estimate. Neither belief is entirely accurate. In a cost-plus contract (also known as time-and-materials or cost-reimbursable), the contractor performs the work and bills for its labour and materials, plus an agreed markup. Under this arrangement the owner takes on most – but not all – risk of cost increases.

The contractor’s risk under a cost-plus contract increases where a cost estimate is provided. Contractors often assume that “the work cost what the work cost” and the owner is required to pay that price, even when it exceeds the estimate. However, there are two important exceptions to this principle: The estimate may be found to be a contract price, or a contract-ceiling price. To determine this, a court will review a number of factors, including whether the contractor’s markup was a percentage of total project cost, whether the owner communicated that price was its primary concern; whether the owner relied on the estimate; whether

To limit risk, contractors should clearly state in writing that estimates are non-binding, set out what costs are and are not covered by the estimate, and explain the assumptions on which the estimate is based.

In all such arrangements, the contractor owes a duty to the owner to carry out the work with reasonable competence and economy. This means the work must be performed in a good and workmanlike manner, and the cost of construction must be reasonable. The contractor is required to keep detailed records of its accounts. The owner is not required to pay the contractor for work performed to correct defective work. For example, if a wall is painted twice because the first painting was uneven, the owner is only responsible to pay for the cost of painting it once. This principle applies whether the owner was aware of the defect or not. The contractor seeking payment bears the burden of proof to prove that its costs were reasonable.

the contractor billed on a time and materials basis and provided labour and equipment rates; and whether the contractor explained that it was not assuming the risk of the contract price exceeding the estimate. Even where the estimate is “just an estimate” and not the contract price, the contractor owes two duties to the owner: To exercise reasonable skill and care in preparing the estimate; and To update the owner as costs increase. It is true that an estimate is not a warranty or a guarantee, and the contractor is not required to be “right”. But the limitations of the estimate must be clearly explained: absent changes to the work or other unforeseen circumstances, courts have consistently held that a contractor

must complete the work within a reasonable variance from its cost estimate. What is “reasonable” depends on the circumstances. This author has reviewed cases in which the contractor was held to its cost estimate, plus an increase of 5 to 20 per cent. To limit risk, contractors should clearly state in writing that estimates are non-binding, set out what costs are and are not covered, and explain the assumptions on which the estimate is based. If a contractor does not have enough information to prepare a reasonably accurate estimate, it should decline to give one. Contractors should also ensure changes to the work are documented by change orders, to justify costs were reasonable and to explain why they exceeded the estimate. Finally, the contractor should keep the owner informed of costs incurred and changes to the forecast as often as possible. Owners should understand that an estimate will not be a ceiling price unless incorporated into the contract, and should request details in order to understand what costs are not contained within the estimate and where costs might increase. Owners should insist on regular cost updates and should review the contractor’s accounts. Where the owner requests changes to the work, the owner should also obtain cost estimates for those changes and document them with change orders in order to forestall an argument that all cost increases were owner-caused. This article is for information purposes only and may not be relied on for legal advice.

Krista Johanson is a lawyer at the law firm of Borden Ladner Gervais LLP who practices in the area of construction dispute resolution. Send comments to editor@on-sitemag.com.

58 / FEBRUARY 2017

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