FEBRUARY 2021
THE VIEW FROM ABOVE CONSTRUCTION DISPLAYS ITS QUIET DETERMINATION IN A TOUGH YEAR
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VOLUME 66, NO.1/FEBRUARY 2021
COVER STORY 22 The view from above The winner of the 2020 Canadian Construction Photo Contest
24 Setting the scene Compelling views from job sites coast to coast
24
IN THIS ISSUE 5 Comment A president reverses the fortunes of Keystone XL... again
7 News
The major developments
12 Construction stats The key figures
40 No going back The abrupt turn to technology looks unstoppable
COLUMNS 44 Risk
30
Minimizing insurance costs in an increasingly expensive market
46 Contractors and the law Project delay in the CCDC context
40 45 Index of Advertisers
13 Mid-size multi-taskers
‘A perfect storm’
30
35
Excavators in the diverse size class are set to tackle most anything jobs sites throw at them
Changing conditions give cold recycling processes room to grow on road repair projects across Canada
Coordinating aggregate deliveries is always a challenge; new technology may help close the gap
Managing the hired fleet
on-sitemag.com / 3
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SOLUTION
COMMENT
President reverses fortunes of Keystone XL... again
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Mirroring a similar Oval Office scene from four years earlier, albeit with the opposite intent, a few strokes of Joe Biden’s pen brought the 10-year effort to build the Keystone XL pipeline to yet another screeching halt last month. Just as former president Donald Trump enthusiastically put the project back on track in 2017, the new commander-in-chief eagerly derailed it Jan. 20 as one of his first acts as president. The outcome was a near certainty since Biden’s election win, but as TC Energy planned layoffs of more than a thousand construction workers, the decision hit home from Alberta and to Nebraska. Predictably, Alberta Premier Jason Kenney was highly critical of the move, and Prime Minister Justin Trudeau expressed disappointment while trying to striking a more conciliatory tone. He stopped well short of Kenney’s demands that Ottawa “respond with consequences for this attack on Canada’s largest industry.” A long list of construction groups on both sides of the border criticized Biden’s move. Paul de Jong at the Progressive Contractors Association of Canada (PCA) was among them. “We’re disappointed that the new president has lost sight of the huge economic and strategic advantages of this project,” the PCA president said in a release. “It’s yet another signal to natural resource energy providers that governments don’t have the gumption to stand up for projects, even when they meet every condition.” What, if anything, Biden’s decision will do to tackle climate change or prevent increasing quantities of Canadian crude from reaching refineries on the Gulf Coast remains to be seen. If recent trends are any indication, the oil will simply be riding to the rails instead. For construction though, barring yet
another miraculous political reversal, it’s probably safe to assume the Keystone XL project has reached the end of the line. The thousands of jobs it would have created in both Canada and the U.S. won’t materialize, meaning yet another promising multibillion-dollar energy industry project has gone up in smoke, with little politicians or businesses on this side of the border can do about it. There have been more than a few of those since 2014 tied to economic, environmental and political whims. That’s not to say major building projects in the oil and gas industry have dried up entirely. In the pipeline arena alone, construction on the Trans Mountain expansion and the Line 3 replacement continues, as does work on Coastal Gaslink on the natural gas side of the business. Still, the end of Keystone XL is yet another reason for contractors to avoid becoming overly reliant on the energy industry. Among other examples, the past few years has seen firms such as North American Construction Group and Stuart Olson, since acquired by Bird Construction, focus on diversification. There is every reason to follow their example. Alberta will continue exporting oil for the foreseeable future, but an energy transition is underway. Regardless of whether the sentiment is right or wrong, it’s become clear projects like Keystone XL will face an increasing number of political and environmental roadblocks in the years ahead. Contractors able to build exposure in other markets, or pivot to growing segments of the energy industry like clean power or gridscale storage, will be better positioned to adapt when the next megaproject faces years of delay, or is stopped in its tracks.
David Kennedy / Editor dkennedy@on-sitemag.com
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CONTRIBUTORS
MEET OUR CONTRIBUTORS FOR THIS ISSUE VOLUME 66, NO.1/FEBRARY 2021 www.on-sitemag.com
JACOB STOLLER / Principal, StollerStrategies On the opportunity in operating virtual fleets: “With transportation accounting for a larger and larger chunk of lifecycle aggregate costs, efficiency is also becoming a bigger issue. For example, better coordination is often needed to avoid wasteful scenarios, such as long lines of dump trucks waiting their turn to deliver their loads.”
READER SERVICE Print and digital subscription inquires or changes, please contact Urszula Grzyb, AUDIENCE DEVELOPMENT MANAGER Email: ugrzyb@annexbusinessmedia.com Tel: (416) 510-5180 Fax: (416) -510-6875 Mail: 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 PUBLISHER | Peter Leonard (416) 510-6847 pLeonard@on-sitemag.com
DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On how to minimize insurance costs in an increasingly expensive market: “By doing an in-depth review, you can get an idea of what your future insurance terms will look like, but it will also prepare you to help insurance underwriters better understand why those losses occurred and, most importantly, what you are doing prevent and mitigate future losses.”
TRISH MORRISON AND STELA HIMA BAILEY/ Borden Ladner Gervais LLP On project delays in the CCDC context: “The unpredictability of COVID-19 makes it difficult to know how significant the impact could be on a project. However, as with any situation that causes delay to project completion, steps need to be taken as soon as possible in order to preserve contractual rights and remedies. Understanding the requirements of the contract, including the steps which must be taken in order to make such claims, is key to determining the best course of action.”
EDITOR | David Kennedy (416) 510-6821 dkennedy@on-sitemag.com MEDIA DESIGNER | Lisa Zambri lzambri@annexbusinessmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 dskene@on-sitemag.com ACCOUNT COORDINATOR | Kim Rossiter (416) 510-6794 krossiter@on-sitemag.com COO | Scott Jamieson sjamieson@annexbusinessmedia.com
Established in 1957, On-Site is published by Annex Business Media 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 Publications Mail Agreement No. 40065710 ISSN: 1910-118X (Print) ISSN 2371-8544 (Online) SUBSCRIPTION RATES Canada $49.50 per year, United States $113.00 per year, Other foreign $136.50, Single Copy Canada $13.50. 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@annexbusinessmedia.com Tel: 800-668-2374 Content copyright ©2021 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
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INDUSTRY>NEWS Maple Reinders picked to build new $457M organics facility in Halifax The organics facility will process roughly 60,000 tonnes of waste per year.
A P3 consortium led by Maple Reinders has been named the preferred proponent for a project to replace a pair of composting facilities in Halifax with a new organics processing plant. The Halifax Regional Municipality selected the Harbour City Resources (HCR) build team from a shortlist of four consortia after a roughly three-year procurement period. Along with Maple as the managing partner and builder, HCR includes CBCL Ltd. on the design side, Waste Treatment Technologies as the composting technology
provider and AIM Environmental Group for operations and maintenance. The city and P3 team are expected to finalize the design-build-own-operatetransfer (DBOOT) contract early next year. The total cost of the facility, including the 25-year maintenance and operations term, is approximately $457 million, according to a report from city staff. HCR has previously built and operates composting facilities in Hamilton and Guelph, Ont., as well as in Calgary.
The new organics plant will be built in Goodwood, N.S., at the site of the existing Ragged Lake Facility. Once complete, it will replace both Ragged Lake and another composting facility in Dartmouth. It will also increase the city’s composting capacity to 60,000 tonnes per year from 50,000 tonnes previously, using aerobic treatment to process food waste and commercial organics. Construction is scheduled to start this year and run two to three years.
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INDUSTRY NEWS
The quickly evolving procurement process for the new Ontario Line, which will run beneath downtown Toronto before swinging north through the city’s east end, has reached the next phase. Infrastructure Ontario (IO) and Metrolinx shortlisted three consortia Dec. 17 for a package that includes civil, station and tunnel work for the southern portion of the 15.6-kilometre subway line. A range of big-name builders and design firms, both domestic and international, are in the running to take on the project. “By issuing these first Ontario Line RFPs, Premier Ford’s vision for a worldclass regional transit system continues to make steady progress,” Caroline Mulroney, the province’s minister of Transportation, said in a release. “The COVID-19 pandemic has had a devastating impact on our economy, and major transit projects like this will contribute significantly to our recovery by stimulating future growth and job creation.” The province has divided the project into three main P3 contracts: one for the southern segment, one for the rolling stock and operations, and one for the northern portion of the line. Along with issuing a request for proposals for the southern civil
work, IO also issued the RFP for SHAUNL / ISTOCK / the rolling stock GETTY IMAGES PLUS / GETTY IMAGES in December. The RFP for the civil, station and tunnel construction on the northern section is not expected until 2022. Final costs for the project have not been determined, but a preliminary business case released by provincial transit agency Metrolinx Dec. 17 estimates the Ontario Line’s cost at roughly $10 billion. It is one part of a wider province-led transit expansion plan worth $28.5 billion. The Ontario Line will add 15 stations to Toronto’s The contract for the southern subway map and relieve some of the pressure on the existing Yonge Line. segment of the line encompasses most of the major work required west of the Don Valley. Of the new subway’s 15 total select a winning team in 2022. stations, seven are included in the south The two crown agencies said early segment. The design-build-finance contract works on the line could start this summer, will include roughly six-kilometres of though major construction will not get tunnelling, the construction of the stations underway until 2023, according to the and guideways, and the necessary utility, preliminary business case. Once in full mechanical and electrical systems. swing, work on the subway is expected to The three shortlisted consortia — create approximately 4,700 jobs. Community Transit Link, ON-Linx and Despite committing to deliver the tranOntario Transit Group — will prepare bids sit project by 2027 when first introducing for the major infrastructure job in the it in 2019, the business case now lists the coming months. IO and Metrolinx plan to start of operations on the new line as 2030.
PHOTO: FRASER HEALTH
EllisDon to take on phase two of $1.35B Vancouver area hospital redevelopment
A rendering of the new patient care tower at the Royal Columbian Hospital in New Westminster, B.C.
EllisDon has won the contract for the second phase of redevelopment on the Royal Columbian Hospital in New Westminster, B.C. Fraser Health, which oversees the hospital on the east end of Metro Vancouver, announced the design-build agreement Jan. 11. and said early work is already underway.
8 / FEBRUARY 2021
The Mississauga-based contractor will be responsible for building a new acute care tower with more patient beds, a larger emergency department, four operating rooms and space for number of other medical services. The phase also includes construction of a two-level parkade, a new main entrance to the hospital and a rooftop helipad. Excavation for the new tower is expected to start shortly and work will run through 2025. Construction is part of a three-phase redevelopment project at B.C.’s oldest operating hospital and follows the completion of the site’s new Mental Health and Substance Use Wellness Centre, which opened last summer. The total cost for the modernization is estimated at $1.35 billion. Along with the contract for phase two construction, Fraser Health said it has also awarded EllisDon a construction management contract for the upcoming final phase of work. Phase three is scheduled to start in 2023 and focus mainly on upgrades and expansions to existing facilities.
PHOTO: METROLINX
Three teams in the running to build south end of new Toronto subway line
PHOTO: GOVERNMENT OF ALBERTA
A rendering of the new and upgraded series of bridges over the Bow River in Calgary. The new bridges will make up part of the city’s ring road.
PCL wins $48M contract to build South Bow River Bridge in Calgary A $48 million contract to replace a bridge over the Bow River on southeast Stoney Trail, or Hwy. 201, in Calgary has been awarded to PCL Construction. In a release Jan. 8, the Alberta Ministry of Transportation said the contractor will start construction on the infrastructure project this spring. The scope of work includes building a new eastbound bridge, widening the existing westbound bridge and erecting a new, standalone pedestrian bridge. Related to construction of Calgary’s ring road, which is now nearly complete, the bridge project is being advanced partly in anticipation of higher traffic volumes on Stoney Trail when the ring road fully opens in 2024. The work was initially expected to cost $70 million, but the province said the total cost of the project is now estimated to come in lower, at $60 million. The project will create 244 jobs over the roughly 30-month construction period. The series of new and upgraded of bridges are scheduled to open to in late 2023.
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INDUSTRY NEWS
Five deaths on Ontario job sites in one week prompt stand downs, calls for action A deadly week on Ontario construction sites last December had industry groups imploring contractors to redouble their focus on health and safety, and one labour association demanding immediate government action. The spate of incidents left five workers dead across southern Ontario. Two workers were killed and four injured in a partial building collapse in London Dec. 11. Another was killed Dec. 15 on an Ontario Tech University construction site in Oshawa. And in Toronto, two workers died in separate incidents — one on a downtown job site Dec. 14, the other on Scarborough road work project Dec. 17 after being stuck by a vehicle. Groups such as the Infrastructure Health and Safety Association (IHSA) and the Ontario General Contractors Association (OGCA) called for builders across the province to pause for safety stand downs. “Now is the time to reinforce safe work procedures and the practice of performing risk assessments on all your tasks, regardless of whether they are new tasks or existing ones,” the chairs of the IHSA said in an open letter. “With efforts focused (rightfully) on the topic of COVID-19, including its impact on our personal lives, upcoming holidays, increased levels of spread, and the rollout of the vaccine to fight this coronavirus, it is understandable
© BY 4 GIRLS 1 BOY / ADOBE STOCK
We work from the perspective that one injury is too many and that every accident is preventable.”
how attention can be diverted from everyday risks and hazards in the workplace.” “It is up to all workplace parties to work even harder to increase attention to performing work in the safest manner possible,” the letter added. The OGCA said all contractors should hold meetings with both their management teams and workers to reinforce job site safety as the top priority. “We work from the perspective that one injury is too many and that every accident is preventable,” the association said in a call to action. “With all the stresses of COVID-19, the changes in seasons, and the rush to finish work before the holiday season, it is essential that everyone comes to work fully fit for duty, focused on the tasks at hand, and that contractors put safety above all other pressures,” it added. Broader labour groups also weighed in following the series of job site fatalities. The Ontario Federation of Labour (OFL) said “urgent” government action was required to improve safety on construction sites. “The Ford government must immediately take action to improve protections for workers on construction sites,” Patty Coates, president of the OFL, said in a release. “Workers must be guaranteed their safety and well-being is the primary concern and focus. This recent string of tragedies makes it clear that we must do more to protect Ontario workers.” Pointing to the deadly Metron Construction scaffolding collapse in 2009, which prompted a thorough review of workplace health and safety across the province and the significant 2011 update to Ontario’s OHS rules, the labour group said “similar urgent action is once again required.” “We must redouble efforts to ensure that every worker is protected through robust health and safety measures and beefed-up protocols and procedures,” Coates said. “The OFL is calling on the province to strike another expert panel, and immediately launch a targeted health and safety enforcement blitz.”
Industry groups say contractors must reinforce safety as the top priority on job sites.
10 / FEBRUARY 2021
It will be at least another a year before the first phase of Montreal’s new Réseau express métropolitain (REM) carries its first passengers, but the driving force behind the project is already looking to expand the new light rail network. In a press conference Dec. 15, CDPQ Infra, alongside Quebec Premier François Legault and other officials, announced a plan to extend the yet-to-open transit system to the east along two additional spurs. “We are announcing the largest investment ever made in public transit in Québec, with major economic benefits,” Legault said in a release. “The east end of Montréal has great economic potential, but at the moment, public transit services in this part of the city are not up to par.” Plans for the REM de l’Est project include 23 new stations and 32 kilometres of light rail tracks, both above and below ground. CDPQ Infra, a subsidiary of Caisse de dépôt et placement du Québec, noted the proposed extension would stretch the overall REM to 99 kilometres, making it one of the largest automated transit networks in the world. The currently approved map of the REM network covers 26 stations, with track running predominantly northwest from Brossard, Que., through downtown Montreal, before splintering into three segments toward Deux-Montagnes, Anse-À-L’orme and Montréal-Pierre Elliott Trudeau International Airport. Construction began in 2018 and is now expected to be complete by 2024 – following significant adjustments to the construction schedule last fall. The original REM was expected to cost $6.3 billion, though that figure is nearly certain to be revised upward due to the COVID-19 pandemic. Costs for the eastern extension are even higher. CDPQ Infra disclosed $10 billion as an early estimate for the new REM de l’Est. The transit work would create roughly 9,000 direct and indirect jobs per year during construction, with much of the work taking place above ground. After carrying out numerous corridor studies, CDPQ Infra settled on elevated rail as the best solution for the majority of the route. One exception is an underground segment on the northeast spur. Along with interconnections with the under construction REM network, the REM de l’Est would also tie into the Montreal Metro’s Green, Blue and Orange lines. Once operational, the fully automated, electric system could serve more than 133,000 commuters each day throughout the city’s east end. The Dec. 15 announcement marked the start of the consultation process for the multibillion-dollar transit project. CDPQ Infra said it will hold a range of meetings with communities and other stakeholders in the coming months, adding that
PHOTO: CDPQ INFRA
Proposed extension to new Montreal REM would add 23 more stations, cost $10B
A rendering of one of the new stations on the REM’s planned eastern extension. The project includes 23 additional stops.
it could present the new infrastructure project to the Bureau d’audiences publiques sur l’environnement (BAPE) for review as early as next year. If approved, detailed design and construction would follow. 21_0244_OnSite_FEB_CN Mod: January 13, 2021 10:00 AM Print: 01/29/21 11:09:13 AM page 1 v7
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Workers Employed in Construction by Month
CONSTRUCTION STATS
2019
A selection of data reflecting trends in the Canadian construction industry
CONSTRUCTION LABOUR MARKET ENDS 2020 DOWN ROUGHLY 80,000 WORKERS
Though most construction projects across Canada never came to a complete standstill 2020 as a result of COVID-19 – and shutdowns at those that did halt work were typically brief – the pandemic took a considerable toll on the industry’s workforce throughout 2020. The industry shed 2,900 jobs in December, according to the latest Labour Force Survey from Statistics Canada, ending a year of job losses and partial recovery on a sour note. The relatively small loss last month – 0.2 per cent of the overall industry – follows major losses in the spring, a partial recovery through the summer and some ups and downs during the fall. Roughly 1.4 million workers were employed in construction at the end of 2020, down approximately 80,000, or 5.4 per cent, from the close of 2019. Construction is among the hardest-hit of Canadian industries, though layoffs pale compared to certain service sectors where losses top 25 per cent.
January 1,444.9 February 1,438.3 March 1,435.9 April 1,465.1 May 1,456.5 June 1,449.1 July 1,474.1 August 1,472.0 September 1,481.8 October 1,460.5 November 1,465.3 December 1,482.3 January 1,497.6 February 1,489.7 March 1,487.5 April 1,173.9 May 1,247.6 June 1,330.8 July 1,364.3 August 1,368.8 September 1,369.4 October 1,377.8 1,404.1 November December 1,401.2 In thousands of workers, seasonally adjusted SOURCE: STATISTICS CANADA
INVESTMENT IN BUILDING CONSTRUCTION NOTCHES THIRD CONSECUTIVE DECLINE
CONSTRUCTION CAPACITY UTILIZATION SHOWS IMPROVEMENT IN THIRD QUARTER
Spending on new buildings fell for a third straight month in November, declining 0.1 per cent, according to the latest data from Statistics Canada. The non-residential market remained stable, however, with spending during the month at $4.4 billion, the same figure recorded in October. The lack of change snapped a four-month string of declines in combined spending for the commercial, industrial and institutional segments. The residential market, on the other hand, reported its first decline in six months. Statistics Canada pointed to a 2.2 per cent dip in investments in multi-unit projects that offset a 2.1 per cent increase in single-family construction spending.
Industrial capacity utilization in the construction industry showed signs of recovery in the third quarter of 2020, rising 7.2 points to 87.2 per cent. Earlier in the year, the metric, which weighs actual output against theoretical potential, showed the impact of COVID-19 on the industry. Hovering around 90 per cent capacity in late 2019 and early 2020, the rate plunged to 80 per cent in Q2. The positive momentum in Q3, the most recent period for which data is available, may be short lived, however, with rising COVID cases across Canada as part of the so-called second wave possibly causing renewed slowdowns in the final three months of 2020.
RESIDENTIAL
+2.1%
MULTI-UNIT
-2.2%
COMMERCIAL
-0.5%
INDUSTRIAL
+0.6% 12 / FEBRUARY 2021
INSTITUTIONAL
+0.4%
12.8%
87.2%
EXCAVATORS
MID-SIZE
MULTITASKERS Excavators in the diverse size class are set to tackle most anything jobs sites throw at them BY DAVID KENNEDY
M
odern construction sites require modern solutions, and as contractors turn the page on a unique and challenging 2020, equipment manufacturers are stepping up to make work on-site quicker, cheaper and cleaner. Nowhere are advancements as important as in the diverse mid-size excavator market, where builders rely on their machines to handle an untold number of different tasks. On the whole,
OEMs are focussing on improving performance, bolstering fuel efficiency and outfitting equipment with more automation technology in 2021. Below, On-Site gets into the specifics, checking in with some of the key big iron makers on what to watch for this year with their 20 to 70 ton excavators. With Canadian operators settling into their heated cabs for winter, we’ve also touched on the latest cold weather features designed to keep mid-size models running smoothly through the shorter days. on-sitemag.com / 13
EXCAVATORS
CATERPILLAR Cat’s rollout of its Next Generation excavators continued through 2020, with two of its latest models – the closely related 349 and 352 excavators – premiering last fall. As it has with all machines in the new line, the equipment maker has packed the 349 and 352 with a range of standard tech features focused on improving both production and fuel efficiency. To name a few, Cat Grade with 2D, Grade Assist, Cat Payload, E-Fence and Lift Assist come standard. Using both the display and a series of audible tones, Lift Assist tells an operator how much they’re lifting and the safe working range for their load, Ryan Neal, product application specialist for Caterpillar, says. “If you lift a manhole off of a truck, it’s going to tell you how much weight you just picked up and then as you start to boom and stick out, and move that object around, we’re going to tell the operator where that safe working window is,” he says. Along with the other features, Neal says Cat plans to introduce Grade With Assist on the two new machines in the near future. On the efficiency front, the new models offer more work per unit of fuel than previous models. Smart Mode, for instance, automatically matches engine and hydraulic power to digging conditions, reducing fuel consumption. The smart hydraulic pumps and main valve system also constantly read the operator’s joystick signals, Neal notes, allowing for lower engine RPM while ensuring no part of the excavator is overworked. For cold weather, Cat offers several packages – from extra batteries and block heaters, to ether aid – to ensure contractors are not slowed down on frigid mornings.
DEERE This month, John Deere introduced SmartGrade technology on a pair of its mid-size excavators. The new semi-automatic control options for the 210G LC and 350G LC give customers a choice between combinations of guidance, control, as well as 2D and 3D systems. The automation technology is also designed to grow
14 / FEBRUARY 2021
with customer needs, with upgrade kits making it easier for customers to adopt new systems as required. “Overdigging can be costly when you factor in the time it takes to rework, additional materials needed to get back to grade, and compaction,” says Justin Steger, solutions marketing manager for Site Development & Underground, John Deere. Depending on what level of the technology customers select, the system employs hydraulic limitations or audible alerts to ensure operators can get to the desired grade quickly, without going too deep, Steger adds. Among other features aimed at fuel savings, Deere includes auto idle and auto shutdown as standard, eliminating fuel burn when excavators aren’t being put to work. To keep operators comfortable through the winter, the equipment maker offers an optional air-suspension heated seat and a premium, high-back, three-way adjustable, active heating (and cooling) seat. Deere cabs also feature an automatic, high-velocity bi-level climate-control system with automotive-style adjustable levers, Steger notes. “That helps keep the glass clear, the cab comfortable, and the operator productive.” Finally, to keep up visibility with less daylight, the company offers full LED light packages “to get the work done from before the sun comes up until after the sun goes down.”
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EXCAVATORS
DOOSAN While integrating advancements throughout its mid-size models, safety is the area Doosan views as paramount. Rearview cameras are now standard on all of the equipment maker’s crawler excavators, visible to the operator through an in-cab LCD monitor. A sideview camera is also available, and the latest step forward, an all-around view monitor, will be available in all of the company’s next generation crawlers. Along with new safety technology, Doosan has focused on both maximizing uptime and improving fuel efficiency through DoosanCONNECT. The telematics system helps fleet managers easily keep track of maintenance intervals and ensure operators are making the best use of their equipment. “One area for improvement is unnecessary machine idling, which wastes diesel fuel and burns through warranty hours,” says Aaron Kleingartner, product and dealer marketing manager, with Doosan Infracore North America. “Telematics data clearly shows an operator when he or she is letting a machine idle. Fleet managers can use this as a training opportunity and help educate operators on the benefits of turning off the machine when it’s not in use.” Features such as auto idle and auto shutdown are available on the company’s mid-size excavators, either lowering the engine’s RPM to conserve fuel or shutting
16 / FEBRUARY 2021
off the engine after a predetermined time. For operations in cold weather, Kleingartner advises excavator owners to pay particular attention to engine oil. “Most excavator manufacturers recommend CJ4 engine oils to protect the machine’s vital engine components,” he says. “Switching to a special winter-blend fuel – typically No. 1 – can help excavator owners prepare for cold temperatures.”
HITACHI A semi-automatic system that lets an operator set and maintain their desired grade tops Hitachi’s list of new features for its mid-size excavators. The Solution Linkage Integrated Grade
Control with Topcon, which the equipment maker developed in cooperation with Topcon, gives operators accurate grade information in-cab, without the help of an additional labourer, translating to greater productivity and fewer wasted passes. Soon to be available on the ZX210-6, ZX210LC-6 and ZX350LC-6 models, the platform is also upgradeable, letting contractors bolster the technology on their machines as their business requires. Hitachi’s mid-size machines are powered by a Tier 4 Final Isuzu engine that delivers fuel-efficient and reliable performance, and requires no diesel particulate filter (DPF). Fuel pressure, timing and volume are precisely regulated by electronic control for efficient combustion with Isuzu’s common-rail fuel injection system. Three work modes – High Productivity, Power and Economy – are available, as are features such as auto-idle and auto-shutdown. During the winter, the fuel recirculation system in Hitachi excavators helps prevent fuel gelling in cold climates, Grouped service points and extended maintenance intervals help keep customers running longer. In-cab, operators are kept comfortable even in extreme conditions with a climate-control system that also helps keep the glass clear, as well as an optional heated and cooled seat
EXCAVATORS
HYUNDAI With improved hydraulics across the board and a new Lift Mode enhanced by Fine Swing and Free Swing control features, excavators in Hyundai’s new A Series offer improved control over the load, as well as greater productivity with less fuel consumption. The series is powered exclusively by Cummins Performance Series engines, which feature EGR-free (exhaust gas recirculation) architecture and offer improved power, torque and reliability while reducing complexity and reliability. Hyundai senior product manager, Mike Fuller, says the new architecture also saves on space. The Single Module aftertreatment system combines DPF (diesel particulate filters), SCR (selective catalytic reduction) and urea dosing into one unit, which takes up half the space and weighs 30 per cent less than the prior system, he notes. With no need for manual regeneration, so there is “no downtime.” Among the long list of enhancements on the tech front, Fuller says Hyundai’s mid-size A Series excavators include a new feature known as Owner Menu Editing that preserves preferred operating settings when several operators are sharing the same machine. A pair of batteries with 24-volt systems start the engines, even in cold weather, while an intake pre-heater warms the air to aid the start, Fuller says. The aftertreatment system also has
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heated DEF (diesel exhaust fluid) lines. In-cab, operators can enjoy a fully heated seat and the added amenity of a hot/cold storage box. One model Fuller says he’s watching closely in 2021 is the HX210AL. He anticipates it gaining significant traction, particularly among small to mid-size contractors looking for a fuel efficient machine in the roughly 20- to 22-ton class.
KOMATSU Making use of GPS and sensor data, Intelligent Machine Control headlines Komatsu’s suite of features aimed at improving the efficiency of its mid-size excavators. The system offers semi-automatic excavating, allowing operators to dig straight to grade. “Depending on the job site, this technology can provide up to a 63 per cent improvement in efficiency when compared to conventional staking and grading methods,” says Andrew Earing, senior product manager for Komatsu. The company’s excavators also use a closed centre hydraulic system and arm return circuit – specs that improve hydraulic system efficiencies while also providing higher levels of fine control and multifunction cycle times. With contractors continuing to focus on paring down emissions, Komatsu excavators have six selectable working modes to optimize engine output. They also include engine management technologies such as auto idle and shut down. The company’s standard machine telematics platform, Komtrax, also helps customers easily track fuel consumption and other fleet productivity metrics. In winter weather, Earing says, a number of engine features can help boost performance. “Our engines can easily be provisioned with coolant block heaters and use a 24V grid heater for engine air preheating instead of using ether aid solution which can be costly and unreliable,” he says. “Many Komatsu engines utilize a variable speed cooling fan which also improves cold climate operation as well as fuel efficiency.”
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EXCAVATORS
LIEBHERR Having progressively introduced a new series of excavators since 2019, Liebherr has focused on robust performance with lower fuel consumption. “We’ve got an incredibly productive machine and we’ve got incredible control built into the machine with the ability to customize settings based on the work at hand,” says David Reid, sales manager for Liebherr Canada. The company’s Generation 8 excavators include a dedicated swing pump on the R926 to R945 models as standard. The Tier 4 Final Liebherr diesel engine utilizes SCR (selective catalytic reduction) without EGR (exhaust gas recirculation) or DPF (diesel particulate filters). Automatic engine idling and automatic engine shut-down after idling features cut down on unnecessary fuel burn. In-cab, the high resolution, seven-inch touchscreen display offers numerous control and monitoring options from air conditioning to fuel consumption. Factory supplied auxiliary hydraulics also allow the operator to control up to 20 tools from the monitor. For improved performance in cold-weather, Reid noted the Generation 8 models are equipped with factory-installed fuel heaters. The integrated units assist in cold-start situations.
VOLVO Two recent technology upgrades lead the way for Volvo CE’s mid-size excavators. Originally rolled out in 2017, the equipment maker introduced a significant update to its machine control application called Dig Assist last fall. A range of new features, such as a customizable interface and the ability to use the system with additional attachments, make it easier for operators to work both more accurately and more quickly. “One of the most helpful features on Dig Assist to avoid operators sending out underloaded or overloaded trucks is on-board weighing,” says Sung Sook Kim, product manager for mid-sized
20 / FEBRUARY 2021
crawler excavators at Volvo. “It provides on-the-go data for the load in the bucket and records tonnage moved per shift.” Volvo also recently introduced an automated grading control system known as Active Control, capable of cutting grading times by up to 45 per cent, on the EC220E, EC250E and EC300E. To reduce fuel consumption and tackle emissions, many of Volvo’s mid-size excavators offer ECO mode, which optimizes the hydraulic system to reduce flow and pressure losses. Auto idle and auto engine shutdown features are also included. For operations in extremely cold weather, Volvo excavators can be equipped with several options, including engine block heaters, diesel-powered coolant heaters and Arctic-rated hoses that can handle conditions down to -40 C. “Hydraulic cylinder rods are another area you want to keep an eye on,” Kim adds. “Repeated exposure to snow, ice and salt brine mixtures can cause chrome to rust. You want to fully retract hydraulic cylinder rods when possible and consider steam washing the excavator exterior regularly to help remove salt build-up.”
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PHOTO CONTEST
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Priestly Demolition bridge tear down wins top honour in 2020 Canadian Construction Photo Contest 22 / FEBRUARY 2021
T
Company: Priestly Demolition Photographer: Concrete Pictures Location: Ottawa Date: October 2020
he team at On-Site was floored this January when submissions for our annual photo contest began filtering, and then flooding, in. As they do each year, the hundreds of images from job sites across Canada highlighted the depth, diversity and collective drive of the industry. But in a year that brought an untold number of unexpected challenges, the images also showcased the quiet determination of Canadian builders. This year’s winner is Priestly Demolition, for a remarkable top-down view of its complex bridge demolition project along Highway 417 in Ottawa. The shot shows a series of excavators and support vehicles working to tear down the Nicolas Street Bridge at one of the highway’s busiest interchanges. Unlike most jobs we have featured this year, which will last months or even years, the bridge tear down was also fleeting. From start to finish, the process lasted roughly 17 hours. After closing the highway to traffic, the crew placed sand to protect the roadway below the bridge, as well as blast mats to shield the highway barriers. Shown in the blurred motion in the photo, a half dozen excavators then began hammering the bridge deck as two loaders cleared debris. The remaining steel girders were sheared into smaller pieces and trucked off-site. Finally, the concrete piers were hammered down, and less than a day after starting work, crews from King, Ont.-based Priestly cleared the rubble and reopened the highway to traffic. The demolition project required substantial coordination once crews got to site, and undoubtedly some late nights in planning before the job. In recognition of Priestly taking home the top honour in our 2020 Canadian Construction Photo Contest, On-Site has made a donation in the company’s name to the King Township Food Bank. Like all previous years, the 2020 contest was not an easy one to judge and we thank everyone from across the country who took the time to share a glimpse of their job sites with us. Remember to hang onto your favourite shots for 2021. Next year’s contest will launch in December! on-sitemag.com / 23
PHOTO CONTEST
FINALISTS On-Site received hundreds of stellar images from job sites across the country for its 2020 Canadian Construction Photo Contest – from the East Coast, to the Arctic, West Coast, and everywhere in between. Our impressive 10 finalists follow, but we encourage you to check out on-sitemag.com for even more unique views of the industry in 2020.
Company: Aecon-Flatiron-Dragados-EBC Partnership Photographer: Riley Glazier Location: Outside Fort St. John, B.C. Date: November 2020 Depicting the night shift at the snowy Site C Clean Energy Project in northeast British Columbia, Riley Glazier, site services electrician-foreman for the AFDE Partnership, captured this shot of the sprawling job site. The AFDE construction team is responsible for building the generating station and spillways for the hydro megaproject outside Fort St. John. Construction on the dam began in 2015 and generators at the site are scheduled to begin producing enough energy to power roughly half a million homes starting in 2024.
Company: EllisDon Photographer: Paul Casselman Location: Toronto Date: May 2020
Up to five rigs were simultaneously augering and placing concrete caissons at the three-building Block 8 development just east of Toronto’s Distillery District this May. This shot depicts a “regular” day of foundation work on the EllisDon site. Being built on an aggressive timeline, Block 8 will eventually house 770 rental units and is targeting a LEED Gold certification.
24 / FEBRUARY 2021
A pair of excavators tear down the western half of the Bloor Street West rail bridge in Toronto in this Metrolinx photo, taken by Michael Mahovlich. The staged demolition and reconstruction of the bridge is one component of the Davenport Diamond Guideway project, which is itself part of Metrolinx’s GO Expansion program. Graham Construction is overseeing work on the logistically challenging job valued at $175 million.
Company: Graham Photographer: Michael Mahovlich/Metrolinx Location: Toronto Date: November 2020
Company: Ira McDonald Construction The COVID-19 pandemic was an inescapable reality of 2020, both on and off the job site. Andres Gomez, a junior estimator with Ira McDonald as well as a hobbyist photographer, captured this compelling shot on the company’s ongoing project at the University of Guelph MacKinnon Building. Like other contractors, the firm has implemented a range of safety protocols such as a mandatory screening process and face coverings at enclosed sites.
Photographer: Andres Gomez Location: Guelph, Ont. Date: December 2020
on-sitemag.com / 25
PHOTO CONTEST Clearing the way for part of a new 97-kilometre road northwest of Yellowknife, this image from Peter Kiewit Sons depicts some of the challenging conditions on the Tlicho All-Season Road project. The new gravel road will replace a winter ice road across Marian Lake that connects Whatì to Highway 3. Construction on the remote P3 project will employ more than 230 workers at peak and greatly improve access to, as well as the cost of living in, several local communities.
Company: Kiewit Photographer: Jeff Zegalski Location: Outside Whatì, N.W.T. Date: March 2020 Armando Romeo, a concrete finisher working for Structform International, cleans up a few rough spots along the side of a walkway inside the new Union Station Bus Terminal (USBT). The terminal, which is integrated into the CIBC Square development in downtown Toronto, opened in December 2020 after roughly 2 1/2 years of construction.
Company: Metrolinx Photographer: Matt Llewellyn Location: Toronto Date: November 2020
Captured during the craning process on a modular construction project for BC Housing, this image depicts one of the 57 modules being secured in place at the Peterson Place Supportive Housing Complex. Built to support the crown agency’s Rapid Response to Homelessness initiative, Nomodic crews on the residential project faced steep challenges from a short timeline and a compact job site.
Company: Nomodic Photographer: Martin Knowles Photo/Media / Jason FA Cole, Take Off Photography Location: Surrey, B.C. Date: July 2020
26 / FEBRUARY 2021
PHOTO CONTEST Company: Performance Builders Photographer: Chris Ruiter/SitePartners Location: Vancouver Date: October 2020 A boom lift is craned over a new multi-unit residential project in southeast Vancouver. The five-storey Riverwalk development, built by Performance Builders includes 109 apartments, two-thirds of which will cater to families. Developed by the Vancouver Affordable Housing Agency (VAHA), the project used woodframe construction.
Company: Pomerleau Photographer: Pierre Seager Location: Saint John, N.B. Date: Summer 2020
Company: Valard Photographer: John Bak Location: Edmonton Date: June 2020
A worker on a major expansion project at the Port of Saint John, N.B. The Pomerleau-EBC Marine Works Consortium has been tasked with building a longer, stronger pier that will expand the port’s shipping capacity. The project team must dredge approximately 325,000 cubic metres of seabed before floating eight large concrete caissons into place on the harbour floor.
28 / FEBRUARY 2021
The stands at Commonwealth Stadium needed to stay empty through much of 2020, but fans’ cell phones will be showing full bars when they return. A Valard Telecom Wireless crew was perched – fall arrest harnesses and all – above the gold and green seating this summer in Edmonton to install new cellular infrastructure as part of a Telus project.
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ASPHALT
‘A
PERFECT STORM’ Changing conditions give cold recycling processes room to grow BY DAVID KENNEDY
O
n traditional road repair projects, ministries and municipalities don’t often look too far beyond remove and replace. Contractors dig out or mill the material, haul it to a stockpile or landfill and then truck in aggregate from quarries or hot mix plants to repave the road. It’s the way it’s historically been done and there’s nothing wrong with the
30 / FEBRUARY 2021
process, says Mark Stahl, the director of Recycling Products at Wirtgen America. But faced with limited resources, high transportation costs for materials, the need for shorter construction timeframes and increased momentum for more sustainable ways of working, he anticipates renewed interest in a different approach to asphalt road repairs. “It’s almost like a perfect storm in the
fact that you have this significant green push across the board,” Stahl says. “And two, a lot of our agencies – whether it be the DOTs, or the ministries up in Canada – are feeling budget strains and our pavement structure in general is not improving. It’s getting significantly worse because of the amount of traffic that we’re putting on these pavements that were designed 30 or 40 years ago.”
©VADIM / ADOBE STOCK PHOTO: WIRTGEN
“All this leads to finding a better way to maintain and rehabilitate our pavement systems,” he adds. As an alternative, cold in-place recycling (CIR) checks all the boxes, Stahl says, noting he’s seeing increased traction for recycling processes that use 100 per cent of the material already present on-site. Adding to equation, those materials have already been paid for by taxpayers. The method itself is nothing new. Trevor Moore, corporate technical director for the Miller Group, says the road construction and paving firm introduced CIR to Canada in 1989. As the name implies, crews carry out the CIR process entirely in-place, typically milling the existing road to create a mat of between 75 to 110 millimetres. The material is crushed to the appropriate size, mixed with new binders and laid back down in the same cavity created by the milling process. “That produces a brand new recycled pavement that is free of all of the distresses that existed prior to milling,” Moore says. “After it’s placed, it’s rolled, typically with steel and pneumatic rollers to achieve the density that’s required for the material and for the specifications.” Those agency-developed specifications, include the requirement of a mix design that creates a recipe to be followed during construction that varies from project to project. To finalize the work, a seal of some kind, such as hot-mix asphalt, chip seal, or
microsurfacing, is almost always required. Among other positives, Moore points to time, cost, hauling and environmental savings as the key benefits. “Since you’re not excavating materials, you’re not taking any material off-site, you’re not bringing a lot of new material onto site, there is an inherent improvement in time,” he says. “You’re not damaging adjacent roadways while trucking material away and bringing material back, so there’s a good socio-economic impact because the roads won’t deteriorate as quick and there’s not as much truck traffic on the road.” Though Moore saw adoption of CIR on Ontario roads trend upward through the 1990s until the early 2010s, he says use of the process then plateaued and has declined somewhat over the past five years. Still, he anticipates higher material costs and the recent focus on employing more environmentally-friendly processes will drive wider adoption of the method in the years ahead. “It’ll come back, it is the clear pavement rehabilitation choice,” he says. Cost savings are another benefit. A report from the Ontario Ministry of Transportation, issued under the previous Liberal government, cites cost savings of 40 to 50 per cent compared to conventional treatments, along with 50 per cent fewer greenhouse gas emissions and the consumption of 62 per cent less aggregate. Much of the savings comes from reusing material taxpayers have already paid for in the new pavement structure.
A Wirtgen cold recycler in action. The W 380 CRi can take on cold in-place and full-depth recycling projects.
on-sitemag.com / 31
BIM / E+ / GETTY IMAGES
ASPHALT
Since you’re not excavating materials, you’re not taking any material off-site, you’re not bringing a lot of new material onto site, there is an inherent improvement in time.” – Trevor Moore, Miller Group CIR is also not the only cold recycling technology the industry has its eyes on. Both Moore and Stahl point to cold central plant recycling (CCPR) as another promising alternative for roadways. Turning to CCPR would let ministries make use of stockpiles of recycled asphalt pavement (RAP), which have typically been growing in recent years, Stahl says. “When a contractor puts RAP through in hot mix, it’s usually capped out at 15 or 25 per cent,” he says. “The cold central plant process allows 100 per cent utilization of RAP.” Similar to CIR, but not done as part of a single sequence, CCPR uses recycled pavement reinvigorated with binding agents. The material is processed at a central plant and then hauled to site where it is laid down with normal asphalt pavers
32 / FEBRUARY 2021
and compacted. Though Moore notes the process is “in its infancy” in Ontario, he said with the limits placed on the amount of RAP in hot mix in Ontario in 2017, CCPR’s ability to make use of entirely recycled material creates a significant opportunity. “I think it’s a grossly under-utilized available technology that really mimics the performance of cold in-place recycling that we’ve experienced excellent results with since 1989,” he says. Overall, Moore says owners need to look at both incorporating more in-place recycling to avoid trucking RAP away from roadways and at the cold central plant process to make use of RAP that is hauled away.
SOME GAPS REMAIN Doubra Ambaiowei, technical director
with Ontario Road Builders’ Association (ORBA), sees growth opportunities for the cold processes in Ontario and across Canada, but points to a lack of performance information as one of the areas holding it back. “Data has not usually been kept to support how to evolve the technology,” he says. Likewise, Moore says inconsistencies between lab testing and actual performance has been a drawback for both CIR and CCPR. For instance, in certain cases, pavement has held up well in real-world conditions, but lab results have shown quality issues. He notes both governments and contractors are working on ironing out the problems, and he anticipates more research will fill in the testing gap as recycling becomes more and more of a priority. Along with growing interest in Ontario, Moore says demand for the cold recycling technologies will likely increase in the Manitoba market in the years ahead as well. And while Canada’s western provinces have been slow to adopt the processes, he expects to see steady demand in Quebec and the Maritimes.
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Coordinating aggregate deliveries from multiple independent haulers is challenging at the best of times. New technology may help close the gap
A
ccording to an infographic published by the Ontario Sand Stone and Gravel Association (OSSGA), up to 5,000 long haul trucks in both directions are transporting aggregates each day into the Greater Toronto Area alone. While the purpose of the graphic is to illustrate environmental impact, it shows that with quarries moving farther and farther away from major urban centres, transport capacity for moving aggregates to job sites is strained to the limit. Increased distances mean transportation has assumed a larger proportion of
BY JACOB STOLLER aggregate costs, and consistent and timely deliveries have become major concerns. “It’s important for construction job sites to receive a consistent flow of materials, especially for larger projects,” says Jim Petrella, Commercial Series manager at Dufferin Aggregates. “At Dufferin Aggregates, we are paying great attention to our customers’ needs to ensure they are getting the materials they require.” Aggregate hauling, unlike many other aspects of the construction supply chain, is unique in that many suppliers and contractors are dependent on independently-owned
trucks to meet their delivery requirements. As the demands on the system grows, aggregate suppliers, road builders, site preparation contractors, and other heavy aggregate users are finding it difficult to find the trucking capacity to meet their schedules. “It’s no secret that finding the amount of trucks needed to complete the daily work remains to be one of the largest challenges faced in the construction and agricultural industries,” says Andrew Davies, founder and CEO of London, Ontario-based TruCon, a recently-launched software platform that on-sitemag.com / 35
FEBRUARY 2021
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“It breaks down the barriers of the past,” Davies says, “by bringing the truck community together in the 21st century into one central database that allows more opportunities for contractors to hire the trucks they need and owner/operators to utilize the trucks they have to their full potential.” Like all areas of construction, strong partnerships with subcontractors are essential. “The biggest challenge in coordinating multiple truck deliveries is establishing A graphic from the OSSGA showing the flow of aggregate in and out of the Toronto area. relationships and negotiating pricing with local truck connects trucks and construction jobs. conglomerates,” says Rick Wieringa, manager of RROX Aggregates The TruCon app, which is currently free for contractors and at Edmonton-based Park Paving. “We have a few of these in our truck owners, creates a central database both parties can access. area of the province and the ability to call on them for any number
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of trucks at a set price is the most challenging as the industry is demand based.” Prices often fluctuate, and truckers will sometimes defect for a higher paying load. “This can cause inconsistent service delivery from these hired trucks thus creating delivery volume issues,” says Wieringa. With transportation accounting for a larger and larger chunk of lifecycle aggregate costs, efficiency is also becoming a bigger issue. For example, better coordination is often needed to avoid wasteful scenarios, such as long lines of dump trucks waiting their turn to deliver their loads.
APPLYING TECHNOLOGY TO THE PROBLEM Traditional technology has addressed many of these issues through a combination of fleet management and dispatching software. While these technologies address many of the problems of managing a large number of trucks, they are not easily adaptable to working with hired fleets due to dependence on vehicle-installed hardware, and to siloed information. Tread, a Toronto-based software company, provides a solution designed specifically for hired fleets which combines functionality found in fleet management, subcontractor management, and logistics systems. Drivers access the platform through a free app on their cell phones. “We’re different because we’re completely mobile,” says Noah Dolgoy, Tread’s co-founder and CEO, “so we’re in the business of making it really easy for our clients to create a virtual fleet every single day. So using our tools, they can send work out to hundreds of different subcontractors.” Dolgoy notes that Tread works side by side with fleet management software from the likes of Trimble and Command Alkon. Tread also provides some basic fleet information gathered through Geospatial reports – highlighting trip information, and In-Vehicle Monitoring System (IVSM) reporting – and providing safety flags such as hard braking and speeding. Contractors that adopt the platform share their list of subcontractors with Tread, which reaches out to them and provides
38 / FEBRUARY 2021
“Technology is going to play an increasing role in the future, and implementing an integrated solution that allows a consistent flow of information will be critical.” – Jim Petrella, Dufferin Aggregates support. “When we sign up, say, a paving company, we ask them for a list of their subcontractors,” Dolgoy says. Tread then sends texts to prospective subs notifying them as jobs are available on the Tread app. “We can very gently onboard people without changing their workflow at all,” Dolgoy adds. Tread also executes subcontractor management workflows such as sending and accepting pricing and commercial terms and conditions. “Once they’ve accepted, we create that virtual fleet,” Dolgoy says, “so different operators can work together as if they were part of the same company.” Tread automates e-ticketing and invoicing, and through an artificial intelligence engine, provides advanced analytics for optimizing hired fleets. Data can be shared with the general contractor who may be concerned about optimizing the transportation cost centre. “This is really a third party logistics solution,” says Dolgoy. The software is a significant time saver for dispatchers who otherwise communicated with drivers through texts, emails, and phone calls. In video and written testimonials on Tread’s website, Truckers report that the software is easy to use, saves paperwork, and helps them manage their jobs. Perhaps the biggest hurdle is one all too familiar to technology adopters in construction – the perennial challenge of gaining user buy-in. Park Paving, which has experimented with Tread but is not using it for daily operations, found many of the truckers he was dealing with are reluctant to use any cell phone apps. “We’re dealing with a lot of people who have been driving for 10, 20, 30 years who have never had to use anything but pencil and paper,” Cam Clark, Transportation coordinator at Park Paving, says. “This older generation doesn’t understand the ability
and the reasoning behind using the technology. So now you have users you’re reliant on that don’t understand the technology and don’t want to use it.” Clark acknowledges that there may have been mitigating factors, such as the particular group of individuals involved, or his company’s approach to training. “COVID19 also didn’t help because a more tactile approach works way better,” says Clark, “and being unable to do that definitely didn’t help the process.” Dolgoy notes that it’s common for truckers to be skeptical, which is largely due, he says, to a number of job booking sites that act as intermediaries. “If you’re a marketplace, and they think you’re trying to break up their relationship with their client, who is the paving company, then they push back really hard,” Dolgoy says, “and I think there are some other companies in this space that are behaving that way.” Tread puts considerable emphasis on onboarding, applying what Dolgoy calls a white glove approach which emphasizes showing truckers the benefits, such as fewer phone calls and emails, immediate status updates, less paperwork, analytics to improve their efficiency, and instantaneous invoicing. He also emphasizes that Tread can’t track people unless they have turned on the app for a specific job. Truckers who go through onboarding, Dolgoy says, will push back in less than 10 per cent of cases. The key is that when it comes to ensuring efficiency, transparent communication amongst all parties – material suppliers, contractors, and haulers – is a scenario where everybody wins. “Technology is going to play an increasing role in the future, and implementing an integrated solution that allows a consistent flow of information will be critical,” Petrella says.
New
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TECH ADOPTION
No going back The abrupt turn to technology on job sites looks unstoppable BY DAVID KENNEDY
T
he global pandemic, which accelerated the construction industry’s drive to adopt technology throughout 2020, may have been an aberration, but the widespread embrace of new tech tools on job sites is here to stay. It has also been a long time coming. Much of the industry has been integrating an increasing level of technology for the past decade.
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With cloud software and other such systems in place, some contractors were able to adapt quickly to the dramatically altered landscape of March 2020. Others were forced to enter something of a time warp. As McKinsey and Co. put it in a report last fall, the COVID-19 crisis compressed years of technological change into a matter of months.
But now that the shift has taken place, tech firms do not anticipate a backslide – even when widespread vaccination pushes the pandemic off the top of priority lists. “The case in point here is that companies realized that investing in technology should not be something that you do in a reactive fashion, but something you look at proactively,” says Ajoy Krishnamoorthy,
© KOSSSMOSSS / ADOBE STOCK
vice-president of Platform Strategy at ERP developer Acumatica. “It’s not just about being differentiated.” Among other key functionalities, Krishnamoorthy says the remote work environment COVID-19 normalized, made being in the cloud a must-have. While the pandemic was disruptive for the company’s existing clients, it was not entirely debilitating.
“They were able to ask their employees to basically, ‘Take your laptop and work from home starting tomorrow,’” Krishnamoorthy says. At the same time, many of those lacking the proper software tools quickly switched from their legacy systems to platforms like Acumatica’s to keep their job sites running and their remote staff dialled
in to their existing workflows. Construction management software provider InEight saw similar adoption trends as the need to collaborate remotely went through a step change. Brad Barth, InEight’s chief product officer, says the pandemic accelerated what had been a “creeping” trend toward digitization in construction. “The pandemic was kind of an urge to urge them into those changes, but now that they’re there and they see all the benefits of it, I don’t see them moving off of it,” he says. Nearly a year into the pandemic – and no fewer than several more months before an operating environment resembling normal starts to re-emerge – Barth says the tech tools contractors and others in construction have adopted are already well established, leaving little chance of a rollback to old ways of working. More specialized segments of the tech market have also seen rapid uptake during the pandemic. With few areas requiring as much attention as health and safety, Ryan Quiring, the co-founder and CEO of SafetyTek, says the Saskatoon-based company has more users and daily app interactions than ever. The firm’s paperless safety management platform helps contractors collect data from the field, allowing health and safety managers create custom forms to meet disparate reporting requirements in different jurisdictions. Along with diverting the process to the cloud – a key step when trying to minimize staff on-site – SafetyTek’s solution helped tackle one of the novel health challenges COVID brought to the surface. “If you get injured on-site, you can go home and go to your family and not worry about harming them, but if you get a virus on-site, you can go home and spread that,” Quiring says. “And that is what’s really put health and safety on a pedestal, I would say, especially in the construction area where most people are a little more cautious now about how they interact with folks on-site.” Like their counterparts in other operational roles, health and safety managers were acting from a reactionary position in on-sitemag.com / 41
© TREVOR ADELINE/KOTO / ADOBE STOCK
TECH ADOPTION
2020, Quiring says. In the coming months, he expects to see that change. “2021 needs to be the year where we can take a calibrated approach to implementing solutions so we don’t get put in this position again,” he says. In addition to logging mandatory safety forms and related information, SafetyTek is also coaching clients on how to make the best of their data. With metrics such as incidents and near misses on-hand, contractors can glean insight on how to better manage their safety programs. Likewise, InEight is looking to help the industry utilize the stores of information now at its disposal. “We’ve got this wealth of data sitting there, so now the opportu-
nity becomes how do we turn that information into something that makes everybody on the team smarter,” Barth says. Driven in part by the pandemic, Barth says the digital transformation throughout construction has likely now moved past its halfway point. The industry’s use of artificial intelligence and machine learning to increase productivity on job sites, on the other hand, remains in its infancy. Using both industry and company-specific benchmarking to optimize job sites will keep tech firms growing throughout construction in 2021 and beyond, Barth says. He anticipates this more nuanced approach to data will also help construction overcome a number of the barriers contributing to its so-called “productivity gap.” Canadian builders should also integrate the lessons learned during 2020 into their post-pandemic plans Krishnamoorthy says. In particular, as AI and other new tools like sensors and robotics filter into construction, contractors need to be willing to act quickly. “Traditionally, if you go into a process of choosing a new platform and technology, it’s a large committee involved and it’s a decision by committee and it takes forever,” Krishnamoorthy says, adding that instead, as the pandemic took hold, construction companies were “very scrappy” about making adjustments. “I think that one of the key takeaways from this is that you could actually move fast,” he says. “Moving fast doesn’t mean you’re losing control.”
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RISK
By David Bowcott
Minimizing insurance costs in an increasingly expensive market
M
ost stakeholders within the construction sector have likely noticed the cost of their insurance has gone up, in some cases, significantly. This has no doubt been concerning, especially when you consider the uncertain times we are all facing. Unfortunately, the global insurance market is experiencing what is known as a “hard market,” which is a period of reduced insurance capacity and thus, rising prices. Prime contributing factors to this hardening of insurance terms are both macro to the entire insurance sector and micro to the construction insurance sector specifically. At a macro level, the frequency and severity of catastrophic events over the past several years has grown significantly and has had a substantial contributing impact on the entire insurance capital base. In addition, the lower than expected returns from investments have also contributed to a growing demand for more rate increases. In the past, insurers could use returns on their float – or their premium holdings – to make up for shortcomings in their underwriting results, but had not been the case in recent years. From a micro perspective within the construction insurance marketplace specifically, insurers are experiencing significant losses in three out of the core six construction insurance product lines, namely, property, casualty (or liability) and professional liability. The results in the professional liability insurance market have been particularly poor, which has led to a significant reduction in capacity for that insurance product, and thus substantial price increase for that product to all professional liability product classes. So what strategies can you implement to minimize the impact of the current hard insurance marketplace on your company’s or project’s financial future? The first, and perhaps most important, step you can take is getting a clear picture of how well you stack up in comparison to the rest of the construction marketplace when it comes to your ability to manage risk. You claims data is the best source of information for evaluating how you measure up. You and your advisors should perform an in-depth review of the claims results from both your practice policies and any project specific policies you were insured under. Your losses will very likely be the primary area of focus for insurance underwriters when they look to determine the terms and pricing you will receive for any insurances you want to obtain. In essence, it is pretty simple. If your losses over time have left the insurers paying out more in claims and underwriting administration, you can expect to be amongst the hardest hit on pricing and term restrictions for any future insurance placements. By doing an in-depth review, you can get an idea of what your future insurance terms will look like, but it will also prepare you
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to help insurance underwriters better understand why those losses occurred and, most importantly, what you are doing prevent and mitigate future losses. A full claims review prior to any practice policy renewals, or project placements, is absolutely worth the time and energy. Perhaps even more important than analyzing your loss results, however, is getting a firmer grasp of the risk controls you could implement to prevent and mitigate the top losses evidenced in your past insurance claims history. The following represent a brief and select overview of some risks controls you might consider utilizing:
CONTRACTUAL RISK CONTROLS • •
•
•
All project stakeholders should seek to find ideal risk allocations in their contracts Greater collaboration is needed amongst all project stakeholders (consider utilizing collaborative practices or procurement models) Move to a total cost of ownership procurement process vs. the current total cost of construction model currently used (cost over the life of the asset far exceed cost of construction and that should be strongly considered in procurement) Assess and prequalify your fellow project stakeholders – owners, design, joint venture partners, contractors, subcontractors, suppliers, finance and advisors
OPERATIONAL RISK CONTROLS • • • • • •
Ensure you have a strong “go or no-go” process when considering future projects Implement best-in-class subcontractor and supplier risk management practices Consider using peer review as much as possible (design and subcontractor/supplier) Have your safety program reviewed to ensure best-in-class status Ensure you have a strong QA/QC protocol and ensure it is tied to administration/accounting/payment processes Make money – profit now as opposed to optimistic profit later
TECHNOLOGICAL RISK CONTROLS • •
Develop a strong data strategy which evidences your organization’s ability to continuously improve Ensure you have a deep understanding of all technology solutions available to manage top risks and optimize them to best suit your company/project
•
Utilize predictive bidding and scheduling technologies to aid in “go or no-go” decisions Harness the power of job site IoT technologies for realtime awareness and predictive warning
minimize the impact of the current hard construction insurance marketplace. Show the insurers you know where you need to improve and that you have taken the necessary steps to make the improvements.
Top Risk Controls
If you configure your risk controls to suffocate those top risks identified in your claims data, you have the best opportunity to
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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on-sitemag.com / 45
©ANDREY POPOV / ADOBE STOCK
•
CONTRACTORS & THE LAW
By Trish Morrison and Stela Hima Bailey
Project delay in the CCDC context
I
n March 2020, the COVID-19 pandemic forced Canadian provinces into states of emergency, which mandated the closure of non-essential businesses across the country. In Alberta, the construction sector was largely deemed an “essential service” while mandating job sites be subject to the public health and social distancing measures set forth by the provincial government. Such increased safety measures will, if they have not already, undoubtedly play a role in delays associated with the completion of some construction projects. In other provinces, where the construction sector was not deemed essential and most construction sites were closed for periods of time, the impact may be even more significant. Even though the full impact of these safety measures on specific construction projects may not yet be fully known, all parties involved will need to consider the next steps to address the delay and increased costs associated with COVID-19’s impact. Examples of additional costs may include essential and non-essential equipment rentals, utilities, security monitoring, construction insurance, building permit extensions, and additional site expenses, such as wash/sanitation stations, re-mobilization and demobilization costs. Every construction project will be impacted differently depending on the specific circumstances, as well as the provisions contained in the contract that the parties entered into. Generally, for parties that have entered into standard CCDC construction contracts, unaltered by supplementary conditions, the contractual rights and obligations are more streamlined. Despite the nuances used in the various CCDC contracts, the standard General Condition (GC) clauses addressing delay outside of the parties’ control remain consistent throughout. However, as parties often revise the standard clauses in CCDC contracts through supplementary conditions, it is important that the contract be reviewed carefully to confirm the applicable rights and obligations. One of the most commonly used CCDC contracts is the CCDC2 contract – the stipulated price contract between an owner and the contractor. A new version of the CCDC2 contract was released by the Canadian Construction Documents Committee in December 2020. GC 6.5.3 of the CCDC2 contract addresses a situation in which delay is not caused by either party to the contract. In general, this provision allows for the completion time for the project to be extended for a period of time not less than the time lost as a result of the event causing the delay, unless the contractor agrees to a shorter extension. Moreover, GC 6.5.3 states that the contractor will not be entitled to payment for costs incurred by such delays. Indeed in Transit Glass & Aluminum Ltd. v Sakto Corp., 2008 CarswellOnt 1380 (OSCJ), the court commented that a delay to the job completion, in that case due to weather, would not entitle the contractor to additional payment.
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Therefore, unless otherwise amended by the parties, the CCDC2 contract allows the contractor’s schedule to be extended when the contractor is delayed by a cause beyond its control, but the contractor is responsible for any additional costs it incurs as a result of the delay. Additionally, GC 7.2.2 of the CCDC2 contract states that the contractor is entitled to terminate the contract, if the work on the project is suspended or delayed for a period of 20 working days or more under an order of a court or other public authority, as long as such order was not issued as a result of the actions of the contractor. Given the construction industry was determined to be an essential service in Alberta during COVID-19, and was generally not suspended like many other businesses, this provision may only apply in more limited circumstances. For instance, it may apply if a construction site was ordered to be shut down for more than 20 working days due to an outbreak of COVID-19 cases in the project workforce. In order to enforce any of the potential remedies for delay under the CCDC2 contract, it is imperative that a contractor comply with the requirements set out in the contract, including the notice requirements. For example, under GC 6.5.3 of the CCDC2 contract, where the contractor seeks an extension of the completion date for the project, the contractor is required to provide notice in writing not later than 10 working days after the commencement of the delay. Generally, in Alberta, contractual notice requirements are to be strictly complied with when making a delay claim. The Alberta Court of Appeal in ANC Developments Inc. v Dilcon Construction Ltd., 2000 ABCA 223, held that meeting minutes recording complaints made at site meetings did not constitute written notice of a delay claim as required by the contract. In addition, the Court of Appeal determined that Dilcon’s loss of productivity claim was barred due to written notice not being delivered within the required timeframe. The unpredictability of COVID-19 makes it difficult to know how significant the impact could be on a project. However, as with any situation that causes delay to project completion, steps need to be taken as soon as possible in order to preserve contractual rights and remedies. Understanding the requirements of the contract, including the steps which must be taken in order to make such claims, is key to determining the best course of action.
Patricia (Trish) Morrison and Stela Hima Bailey practice Construction Law at Borden Ladner Gervais LLP. Although care has been taken to ensure accuracy, this article should not be relied upon as legal advice.
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