On-Site June 2018

JUNE 2018

MACHINE CONTROL THE RISE OF 3D

RENTAL EQUIPMENT

ANSWERING THE CAPEX QUESTION

RISK

PROJECT MONITORING

TOP CONTRACTORS CANADA’S HIGH-FLYERS

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VOLUME 63, NO.4/ JUNE 2018

C

COVER STORY 31 Top Contractors Our survey of Canada’s largest construction firms

32 Innovation prompts paradigm shift From drones to virtual reality there’s no shortage of new technology. The trick is taking advantage of it

40 Top 5 under 50

After a milestone year, an East Coast firm climbs to the top

DEPARTMENTS 7 Comment

48

Laying the groundwork

10 News

32

The latest industry developments

24 Construction Stats Employment and construction activity figures

COLUMNS 60 Risk

53

The power of project monitoring in preventing and mitigating risk

62 Contractors and the Law Fundamentals of materials liens

56 Index of Advertisers

48

53

58

Highway builders were once the main adopters of machine control in Canada. The rise of 3D and other technological innovations have changed that

Adding a piece of equipment to your fleet has never been easier. More and more frequently, it doesn’t even require a major capital investment

Conventional structures are taking a backseat at campuses as schools test out a new spin on a very old material

Machine control advances

Getting the most from your rental

Tall wood buildings on the rise at Canadian universities

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F-SERIES

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• Best-in-class max. towing*, 34,000 lbs • Best-in-class max. payload**, 7,630 lbs • Best-in-class diesel torque***, 935 lb-ft • Best-in-class gas torque****, 430 lb-ft

Vehicle(s) may be shown with optional equipment. *When properly equipped. Maximum towing capacity of 34,000 lbs with 6.7L diesel engine conguration. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. **When properly equipped. Maximum payload of 7,630 lbs on F-350 DRW Regular Cab 4x2 with 6.2L gas engine conguration. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. ***Maximum diesel torque of 935 lb-ft with standard 6.7L V8 diesel engine 6-speed automatic transmission conguration. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. **** Maximum gas torque of 430 lb-ft on with standard 6.2L V8 gas engine conguration. Class is Full-Size Pickups over 8,500 lbs. GVWR based on Ford segmentation. † When properly congured. Maximum payload of 3,270 lbs with available 5.0L V8 engine conguration. Class is Full-Size Pickups under 8,500 lbs. GVWR based on Ford segmentation. ‡Class is Full-Size Pickups under 8,500 lbs (3,856 kg) versus 2017 and 2018 Competitors. 2018 F-150 4x2 equipped with the 2.7L V6 EcoBoost® and 6-speed SelectShift® automatic transmission, estimated fuel consumption ratings are 11.9L/100-km city, 9.0L/100-km hwy, 10.6L/100-km combined, based on Government of Canada-approved test methods. Actual fuel consumption will vary. ‡‡When properly congured. Maximum towing of 13,200 lbs with available 3.5L V6 EcoBoost engine conguration. Class is Full-Size Pickups under 8,500 lbs. GVWR based on Ford segmentation. ^SYNC Connect: Certain restrictions, 3rd-party terms, or message/data rates may apply. 4G network complimentary 5-year subscription included (after which, fees apply) for remote features excluding Wi-Fi hotspot, activates with vehicle sale date. Requires compatible 4G cellular network connectivity, and is subject to 4G network availability. Evolving technology/cellular networks may affect future functionality. Wi-Fi hotspot includes complimentary wireless data trial that begins at time of activation and expires at the end of 3 months or when 3GB of data is used, whichever comes rst (after which, data plan required). ©2018 Ford Motor Company of Canada, Limited. All rights reserved.

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COMMENT

Laying the groundwork

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

Another tough year for the construction industry in 2017 showcased the dogged resilience and gritty determination Canada’s Top Contractors are already well known for. In many parts of the country, where federal infrastructure cash remained little more than a promise, construction firms were forced to dig deep, particularly in the early months of 2017 when investment in building construction lagged to its lowest point in several years. Contractors were up for the challenge. While there were a few inevitable revenue stumbles over the course of 2017, many companies – particularly small- and mid-sized firms – climbed to fresh heights in spite of the lukewarm business climate. Together, On-Site’s Top 40 Contractors accounted for more than $40 billion in revenue in 2017 and employed some 60,000 workers. The most striking result of our annual survey of the country’s Top Contractors, however, is likely the glowing outlook companies have for their future prospects. The days of contractors predicting stagnation or modest declines are long gone. A staggering 93 per cent of contractors that provided their outlook for the year ahead – some survey respondents opted to keep these figures under wraps – expect to see their revenue increase in 2018. Meanwhile, across all 23 industry segments we measure, an overwhelming majority of contractors forecast growth or no change for 2018. Oil and gas-related construction was the most divisive segment, with 48 per cent expecting growth, 43 per cent anticipating no change and nine per cent expecting decline. Recent figures and industry developments indicate the strong sense of optimism may be well-warranted.

While the federal government has been slow to loosen its infrastructure purse strings, agreements with provinces and territories reached over the past several months unlocked billions in both federal and provincial funds destined for roads, bridges and other major infrastructure upgrades. As of mid-April, Ottawa had inked deals with seven provinces and territories. It added Yukon to the list in May. Other industry indicators, such as spending on building construction, also point to a healthy climate throughout 2018. Investments in non-residential building construction jumped to $14.1 billion in the first quarter of this year, its fourth consecutive increase, according to Statistics Canada. With crude oil prices on the rise, the Canadian energy industry may also reassert itself as a major catalyst for growth in the construction sector. Several high-profile contract awards have also added to the sense of optimism. Big-ticket transit projects, such as Toronto’s Finch West Light Rail Transit project, Calgary’s Green Line and the expansion of Ontario Highway 427 are officially moving forward. The federal government is expected to hand down the construction contract for the long-awaited Gordie Howe bridge imminently. With the groundwork in place and new technologies at their disposal, Canada’s Top Contractors have their sights squarely set on some good years ahead.

David Kennedy / Editor dkennedy@on-sitemag.com

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CONTRIBUTORS www.on-sitemag.com / Fax: 416-442-2230

MEET OUR CONTRIBUTORS FOR THIS ISSUE

PUBLISHER | Peter Leonard (416) 510-6847 pleonard@on-sitemag.com EDITOR | David Kennedy (416) 510-6821 dkennedy@on-sitemag.com

JACOB STOLLER / Principal, StollerStrategies

ASSISTANT EDITOR | Jillian Morgan (416) 510-5201 jmorgan@on-sitemag.com

On how Canada’s Top Contractors are embracing innovation: “The push to innovate… is about improving collaboration in order to reduce variation and create a better outcome for the customer. This involves breaking down silos and promoting a more team-like approach”

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 CIRCULATION MANAGER | Urszula Grzyb (416) 442-5600 x3537 ugrzyb@annexbusinessmedia.com

NATE HENDLEY/ Freeland Writer & Author On the latest developments in machine control: “Initially, machine control was primarily installed on motor graders and bulldozers for grading purposes. In recent years, it’s become more common to see other construction equipment – particularly excavators – equipped with machine control”

DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On using project monitoring to prevent risk: “Transparency can be intimidating to design and construction stakeholders, but it can also be very helpful as some... sources of capital will gladly mitigate their risk through early commitments to solve the problem”

Vice President | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.com President & CEO | Mike Fredericks 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) Circulation email: apotal@annexbusinessmedia.com Tel: 416-442-5600 ext 3258 Fax: 416-510-6875 or 416-442-2191 Mail: 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 SUBSCRIPTION RATES Canada $48.50 per year, Outside Canada US$85.50 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@annexbusinessmedia.com Tel: 800-668-2374 Content copyright ©2018 by Annex Publishing & Printing Inc may not be reprinted without permission.

ALEXANDER J. SPRAGGS / Borden Ladner Gervais LLP On materials liens: “Many, if not most construction contracts, require a supplier of materials to have delivered materials to a project site before they are paid for those materials… This arrangement places the risk of a defaulting materials purchaser squarely on the materials supplier”

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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Canadian Construction Association

8 / JUNE 2018

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INDUSTRY NEWS

INDUSTRY>NEWS Federal government blocks Aecon acquisition over national security concerns OTTAWA—The federal government has rejected the takeover of Aecon Group Inc. by China’s CCC International Holding Ltd. after months of hot-tempered debate across Canada’s construction industry. Innovation, Science and Economic Development Minister Navdeep Bains said the $1.5 billion acquisition would be at the expense of Canada’s national security. Ottawa launched a full-fledged review of the deal in February. “As is always the case, we listened to the advice of our national security agencies throughout the multi-step national security review process under the Investment Canada Act,” Bains said. John Beck, president and CEO of Aecon, said the company is “disappointed” with the decision but will continue to operate in the Canadian market. “Through our proposed transaction with CCCI we had outlined a vision in which Aecon would be better able to compete with the many large global construction companies actively working in Canada,” Beck said. Aecon expected the takeover deal, which had already been

overwhelmingly approved by the company’s shareholders, to close by July 13. The company has reinstated its search for a new CEO to succeed Beck, but it will no longer actively pursue a sale. The purchase of the Canadian construction company that took part in building the CN Tower, Halifax Shipyard and a long list of other iconic projects was the source of national controversy. In March, a poll conducted by Ipsos on behalf of PCL Constructors Inc., Graham Group and Ledcor Group found that nearly three-quarters (73 per cent) of Canadians opposed the sale. The Canadian Construction Association, which represents over 20,000 member firms including PCL, Graham and Ledcor, said it was pleased with the government’s decision. “We are happy that the government recognizes the fact that government-owned or controlled entities have no place to compete against private and publicly-traded companies in the Canadian construction industry,” the association’s president, Mary Van Buren, said. Amid mounting opposition to the deal,

Aecon said it secured several large-scale projects over the past few months. It reported a backlog of $4.6 billion at the end of the first quarter, which included $910 million of new contract awards. Among other contracts, a consortium that includes Aecon recently signed a $2.5 billion deal to build Toronto’s Finch West Light Rail Transit system. Despite that success, the company recently bowed out of the running for another major Canadian infrastructure project. Aecon dropped out of the competition to build the Gordie Howe International Bridge in early May, weeks before officials were set to decide which of three shortlisted construction teams would build the new link between Windsor, Ont. and Detroit, Mich. While the construction industry sees Ottawa’s decision to block the deal as a clear victory, the implications could be far-reaching for Canadian-Chinese relations. China’s embassy said the rejection would be unwelcome news to Chinese investors, adding that it could strain the business relationship between the two countries.

Feds, Quebec to fund Lac-Mégantic rail bypass five years after deadly derailment LAC-MÉGANTIC, Que.—The Quebec town rocked by a fatal rail explosion in July 2013 has received federal funding to divert trains away from downtown. Prime Minister Justin Trudeau announced May 11 that Ottawa has set aside tens of millions of dollars to build a rail bypass around Lac-Mégantic. 47 were killed in the tragedy half a decade ago, which was the result of a train derailment that set off an explosion of numerous tanker cars laden with crude oil. An investigation found the train’s engineer had failed to sufficiently apply the brakes, causing the train to move down a grade and derail near the centre of the town. “For nearly five years, they have worked incredibly hard

to recover and rebuild, and create a better future for their community,” Trudeau said. “Today, we take another step forward. And while we know there are some wounds that can never heal, we sincerely hope this new rail bypass marks a new beginning for the people of Lac-Mégantic.” Many in the community have been pushing for the funds to build the rail bypass since the tragedy. The 12.8-kilometre bypass route is estimated to cost $133 million. The federal government will pick up 60 per cent of the project costs, while Quebec will pay for the remaining share. Design plans are currently being firmed up and construction is scheduled to begin on the bypass in 2019.

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INDUSTRY NEWS

PHOTO: LNG CANADA

A rendering of the export terminal that would liquefy surplus Canadian natural gas before it will be shipped overseas.

LNG Canada awards construction contract for B.C. facility KITIMAT, B.C.—A U.S.-Japan joint partnership has been selected as the engineering, procurement and construction (EPC) contractor for LNG Canada’s proposed liquefied natural gas (LNG) export facility in Kitimat, B.C. Texas-based Fluor Corp. and Japan’s JGC Corp. will hire the majority of skilled workers required during the five-year construction period. The contract award is conditional on the project partners making a final investment decision. LNG Canada shortlisted two EPC consortia in February, including

a partnership between TechnipFMC plc and KBR. A decision to select a preferred contractor was delayed in 2016. Consortia were selected based on prior experience in LNG design and modularization, track record of project completion and construction experience in Western Canada. Fluor had over 7,500 construction personnel working on Canadian projects in 2017, while JGC has experience in the construction of more than 48 LNG trains globally, according to LNG Canada. The proposed LNG export facility aims

to liquefy surplus Canadian natural gas so that it can be exported to help meet global energy demands. “Our team has developed an innovative design and execution strategy that improves the project’s competitiveness,” Jim Brittain, group president of Fluor’s Energy and Chemicals business, said. LNG Canada plans to submit the project to its joint venture participants in 2018, which includes Shell Canada Energy, an affiliate of Royal Dutch Shell, and affiliates of PetroChina, Korea Gas Corp. and Mitsubishi Corp.

Feds, Yukon sign deal for federal infrastructure cash OTTAWA—Yukon has become the latest Canadian region to strike a major infrastructure agreement with the federal government. Federal Minister of Infrastructure and Communities Amarjeet Sohi and Yukon Premier Sandy Silver signed the decade-long agreement that will unlock $445 million in federal cash for the territory May 3. “Building infrastructure is challenging and expensive in Yukon given our short construction season, limited resources, and changing climate,” Silver said. “This agreement provides us with the assurance of long-term funding for infrastructure in our territory, allowing us to plan well into the future.” Ottawa’s share will cover 75 per cent of infrastructure

costs, while the territory, municipalities, First Nations and other stakeholders will foot the remaining bill. The total value of the investments in the territory will reach $594 million. The federal government did not spell out what specific projects the funding would pay for, but said nearly $410 million of the total funding would be earmarked for green infrastructure and rural and northern communities infrastructure. A further $26 million is destined for cultural and recreational projects and approximately $10 million will go toward bolstering the public transit network in the territorial capital, Whitehorse. The majority of Canada’s provinces and territories have now reached infrastructure agreeements with Ottawa.

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2018-05-29 2018-06-06 2:43 12:09 PM PM

PHOTO: ONTARIO MINISTRY OF TRANSPORTATION

INDUSTRY NEWS

Ontario government officials announced work would get underway on another major Toronto-area infrastructure project in early May.

Ontario breaks ground on Highway 427 expansion TORONTO—Construction has started on a $616 million expansion of Ontario’s Highway 427 in Vaughan, Ont. The project will extend the road 6.6 kilometres from Highway 7 to Major Mackenzie Drive, as well as widen it to eight lanes from Finch Avenue to Highway 7 just north of Toronto. The province selected a preferred proponent to design, build, finance and maintain the latest GTHA highway project earlier this year. LINK 427, the winning consortium, includes ACS Infrastructure Canada and Miller Infrastructure as developers, along with MMM Group and Thurber Engineering as designers. Dragados Canada, Miller Infrastructure and Bot Infrastructure will be responsible for construction, while ACS Infrastructure Canada and Miller Infrastructure will take the lead on maintenance. Along with the widening work, the highway expansion includes the installation of a 15.5-kilometre stretch of dedicated High Occupancy Toll (HOT) lanes with electronic tolling in both directions from south of Highway 409 to north of Rutherford Road. The province says no existing general-purpose lanes will be removed to accommodate HOT lanes. The expansion is expected to be complete in 2021.

Fredericton airport lands $30M to double size of terminal

CRUSHING

FREDERICTON—An East Coast airport that has cruised over capacity in the past decade has secured funding for a “critical” terminal expansion. Government and airport officials were at the Fredericton International Airport May 1 to announce an approximately $30 million expansion project at the facility that serves about 400,000 flyers each year. The expansion project will double the size of the terminal, adding space to accommodate more travellers, covered walkways for aircraft boarding and a renovated security check area, among other amenities. Both the federal and provincial governments will invest $9 million, while the Fredericton International Airport Authority will cover the remaining costs. The expansion is expected to create the equivalent of 572 full-time jobs during the construction phase. With design work complete, the airport authority said the project is tenderready. Work is scheduled to begin this summer.

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INDUSTRY NEWS Federal Liberals confirm $1.53B contribution to construct Calgary Green Line LRT CALGARY—The federal government has contributed $1.53 billion to construct Calgary’s Green Line Light Rail Transit (LRT) project. A commitment to fund a third of the project was first put forward by the former Conservative government in July 2015. Prime Minister Justin Trudeau was in Calgary on May 15 to announce that the federal government is ready to “back up” its promise to follow through on that agreement. In July 2017, Alberta pledged up to $1.53 billion over eight years to support construction of the first stage of the project. Calgary committed $1.56 billion over 30 years in December 2015. The first stage will include $4.65 billion in capital construction costs. It involves 20 kilometres of track, 14 stations, a fleet of 70 low-floor light rail vehicles, a vehicle maintenance and storage facility, eight bridges, a four-kilometre tunnel and three park-and-ride facilities. Construction of this stage – the longest segment of LRT constructed at one time in the city’s history – is expected to begin

SCREENING

PHOTO: ADAM SCOTTI/PMO

Trudeau made the funding announcement alongside Mayor Naheed Nenshi (left) and Federal Infrastructure Minister Amarjeet Sohi (right).

in spring 2020 and be complete by late 2026. The completed Green Line, approved by city council in June 2017, will include an additional 46 kilometres of track from 160 Avenue North to Seton in the southeast. Currently 59 kilometres in length, the line will be constructed in stages over a number of years. An estimated 20,000 jobs will be created to support the system’s design and construction, with 400 jobs forecasted for the operation and maintenance of the Green Line when it opens to the public. Part of the funding for the project comes from the over $3.3 billion in federal funding allocated to Alberta in a bilateral agreement signed on April 3. The funding will support projects over the next decade in the areas of public transit, green infrastructure, recreational, cultural and community infrastructure, and rural and northern communities. Once in service, Calgary’s Green Line will provide transit riders in the city’s north and southeast communities with a direct route to the downtown core.

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INDUSTRY NEWS

EllisDon starts work on $411M redevelopment of Toronto hospital, firms up deal for Carillion Canada assets TORONTO—Construction crews have begun work on a significant expansion and modernization project at Toronto’s Michael Garron Hospital on the city’s east end. The project includes the construction of a new eight-storey patient care tower, a three-storey connection to the existing hospital and the demolition of some of the health care centre’s current space. Infrastructure Ontario and Michael Garron Hospital – formerly known as Toronto East General Hospital – awarded the $411 million redevelopment contract to EllisDon Infrastructure MGH Inc. earlier this year after a nearly two-year procurement process. The company officially broke ground on the project April 25. Along with the new tower and connection to the existing hospital, the contractor will be responsible for redeveloping about 100,000 sq. ft. of existing floorspace. The

project is the hospital’s first major renewal since it opened its doors in 1929. Construction is scheduled to reach substantial completion by September 2023. The start of work on Toronto’s east end coincided with another major development for EllisDon’s health care unit. The company closed its acquisition of certain Carillion Canada assets April 23, taking over the struggling firm’s majority stakes in several business units that provide facility management services to four Ontario hospitals. Carillion Canada, which employed thousands across the country, filed for creditor protection in January after its U.K. parent declared insolvency. The crisis sent shockwaves across the Canadian construction industry before Fairfax Financial Holdings Ltd. agreed to buy the majority of Carillion’s assets.

PHOTO: MICHAEL GARRON HOSPITAL FOUNDATION

STACKING

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An artist’s rendering of the redeveloped health care facility on the east end of Toronto. Formerly known as Toronto East General Hospital, the site first opened its doors in 1929. The restoration project will be its first major overhaul in nearly a century.

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INDUSTRY NEWS

PCL teams up with Microsoft on smart building technology

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EDMONTON—PCL Construction has joined forces with tech giant Microsoft to develop a series next-generation smart building methods. The contractor announced the partnership April 18, saying the collaborative effort will marry PCL’s engineering and work site expertise with the technical and research and development know-how at Microsoft. The Canadian construction company’s chief information officer, Mark Bryant, said the smart building segment is becoming increasingly important to PCL’s clients, allowing them access to valuable insights that can offer solutions to a number of common issues. The new agreement is one of many ways the construc9:20 AM tion company is working to integrate cutting-edge technology into its building practices. As part of the partnership deal, PCL will work on leveraging Azure – Microsoft’s cloud computing platform – to increase site safety and efficiency, as well as to track and improve how completed buildings perform. During construction, PCL plans to utilize Azure to keep track of workers, inventory and environmental conditions. After construction wraps up, the company will take advantage of Microsoft’s artificial intelligence capabilities, using collected data to automate building systems such as lighting and heating, and to make general maintenance more efficient. Ultimately, PCL says the series of built-in automated systems could be unified in one central view that would be capable of optimizing everything from a building’s energy consumption to its management and maintenance costs.

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INDUSTRY NEWS

PHOTO: BOMBARDIER

A Bombardier flight test vehicle takes off from Toronto’s Downsview Airport. The sale of the site could clear the way for a major redevelopment project.

★

Bombardier agrees to sell Downsview Airport, opening door for redevelopment of Toronto site TORONTO—Aircraft and train manufacturer Bombardier Inc. has agreed to sell its Downsview Airport property in Toronto, a decision that could lead to a series of significant construction projects on the city’s north end. Worth $816 million, the deal will hand control of the site in North York to the Public Sector Pension Investment Board (PSP), which manages funds invested by members of the Canadian armed forces, public service and Royal Canadian Mounted Police. The sale could lead to a major redevelopment of the airport, hangars and associated lands in what is one of Toronto’s largest remaining undeveloped areas. “This investment is a perfect fit for PSP as it supports our long-term real estate investment strategy,” said Neil Cunningham, the president and CEO of PSP Investments. “We have a stellar track-record in working with large, complex projects across our entire investment portfolio, and we are proud of our continued commitment to investing in Canada.” Bombardier took control of the airport in the early 1990s when it acquired fellow plane maker de Havilland Canada. Along with the landing strip and taxiways, the facility includes aircraft

manufacturing hangars where the Montreal-based company builds business jets and turboprop aircraft. Today, Bombardier said it uses just 10 per cent of the valuable Toronto real estate. Downview Airport is located just north of Highway 401 at Allen Road. It’s also situated along numerous public transit arteries, including the Toronto subway, making it an attractive target for developers in the rapidly growing city. Though the pension fund released no possible redevelopment plans for the site, Kristopher Wojtecki, PSP Investment’s managing director of Real Estate, said the pension fund is planning to collaborate with numerous local stakeholders when investing in the property. “This investment is important for PSP as it allows us to expand our real estate footprint in a global city which is in our backyard,” he said. Under the terms of the deal, Bombardier will continue to lease the space from PSP for at least three years, with options to extend the lease by up to two years. The company will relocate most of the affected manufacturing operations to nearby Toronto Pearson International Airport after leaving Downsview.

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CONSTRUCTION STATS

WORKERS EMPLOYED IN CONSTRUCTION BY MONTH

A selection of data reflecting trends in the Canadian construction industry

2018

1,433.30 March 1 , 4 5 2 . 2 0 February 1 , 4 3 3 . 9 0 January 1 , 4 3 3 . 9 0 April

INVESTMENT IN NON-RESIDENTIAL BUILDING CONSTRUCTION

2017

CONSTRUCTION EMPLOYMENT DIPS IN APRIL

1,448.80 November 1,441.30 October 1 , 4 2 5 .1 0 September 1,406.70 August 1 , 3 9 9 . 3 0 July 1,394.30 June 1,403.40 May 1 , 4 0 2 .1 0 December

Employment in the construction industry declined in April, offsetting gains made in March. The industry shed 19,000 jobs over the course of the month, even as employment in Canada as a whole remained essentially flat and the overall unemployment rate remained unchanged at 5.8 per cent. Despite the monthly decline, employment in the construction industry is up 2.3 per cent year-over-year, Note(s): In Thousands of with 32,000 more workers employed workers, seasonally adjusted than in 2017. Source: Statistics Canada

VALUE OF BUILDING PERMITS FOR NON-RESIDENTIAL SECTOR 6.0

Millions of dollars

5.5 4.5

NON-RESIDENTIAL BUILDING CONSTRUCTION CLIMBS FOR FOURTH-STRAIGHT QUARTER Investment in non-residential building construction across Canada climbed to its highest point in more than five years over the first three months of 2018. Spending totalled $14.1 billion for the quarter, up 3.1 per cent from the previous three months. The increase in spending was also the fourth consecutive quarterly rise, translating to a 9.0 per cent year-over-year increase in construction investment. The gains were widespread, with all three components of the industry (industrial, commercial and institutional construction) posting increases. Meanwhile, investment was up in nine of 10 provinces, with Saskatchewan as the lone region reporting a quarterly decrease in spending. Ontario posted the largest rise, followed by British Columbia and Quebec.

4.0 3.5 3.0 2.5 2.0 1.5 1.0 Mar. Mar. 2013 2014 2015 2016 2017 2018 Non-residential, seasonally adjusted

Non-residential, trend-cycle

BUILDING INTENTIONS TREND UP FOR NON-RESIDENTIAL SECTOR The value of building permits for non-residential structures rebounded in March after a sharp decline in February. The value of permits in the sector rose 4.5 per cent in March, climbing to $3 billion after a 6.4 per cent decline the month before. Strong building intentions in the commercial construction industry led the way, rising 10 per cent in March to $1.7 billion. The value of permits in the industrial sector was also up, jumping 11.6 per cent to $666.5 million. The institutional sector, however, fell 12.7 per cent to $647.7 million in March, with Quebec and Alberta partially to blame. British Columbia was the sole province to post gains in all three segments of the industry.

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THE TOP 40 PG. 31

INNOVATION PROMPTS A PARADIGM SHIFT PG. 32

TOP 5 UNDER 50 PG. 40

LISTINGS PG. 42

TOP CONTRACTORS CANADA’S HIGH-FLYERS

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TOP CONTRACTORS

WELCOME LETTER

I

am honoured to welcome you to the 2018 Top Contractors issue. Aon is thrilled to once again be the official partner of this important publication, as it recognizes the best of the best in a competitive and innovative industry. We’re especially proud to work with many of the firms on this prestigious list. It’s a great privilege for us to serve and support Canadian contractors, who are facing an unprecedented era of change and growth. Although never easy, times of great change lead to innovation. By partnering with Canada’s top construction firms, Aon continues to be forward thinking and to develop new solutions for an ever-evolving marketplace. Earlier this year, we celebrated the 100th anniversary of the Canadian Construction Association (CCA), another partner we are proud to support. It’s astounding to look back at the last 100 years of construction in Canada, however, what’s even more exciting, is the future. The theme of this year’s CCA Annual Conference was “Building to New Heights,” envisioning a future of rapid growth. It’s our belief that this growth cannot be accomplished in isolation – it must involve a team of stakeholders who support contractors throughout the process. As always, Aon will invest in the ongoing success of our clients. We’ll continue to build and develop our business to support you in ways no one else can. There is no doubt the construction industry will evolve even more quickly over the next 100 years. We’re excited by the challenges and innovations this evolution will bring, and we look forward to working with you. Congratulations to all those honoured in this year’s issue. We wish you a profitable, successful, and safe 2018. In partnership, Christine Lithgow President and CEO, Aon Risk Solutions Canada

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TOP CONTRACTORS 2017 was a year of mixed results for Canada’s construction industry. Though it got off to a slow start – and the long-promised federal infrastructure spending remained slow out of the gate – worksites were jolted in the second half of the year as companies added tens of thousands of employees to payroll and put them to work on a range of new and previously delayed projects. While some of the largest players in the industry saw modest revenue declines in 2017, many small- and mid-sized contractors added to their top lines over the course of the year. Your 2017 Top Contractors include 10 firms that booked more than $1 billion in revenue and 36 that posted more than $100 million. I want to thank all the Canadian contractors that took the time out of their busy schedules to participate in this year’s report. Their valuable contributions are vital to maintaining the quality and relevance of On-Site and are the only way we’re able to stay plugged into the industry from coast to coast to coast. From identifying new trends in innovation, to taking the industry’s temperature for the coming months, the responses help us better understand where the industry is headed and what segments will be the ones to watch in the future.

DAVID KENNEDY EDITOR

TOP 5 COMPANIES UNDER 50 EMPLOYEES

Rank Revenue

1

1

2

2

Acadian Construction Ltd. $85,000,000

AMAN Builders

$64,100,000

3

3

Rosati Group

$46,028,764

4

JR Certus Construction

$37,000,000

4

5

5

KF Construction Inc.

$34,548,000

TOP 40 Rank

Company

2017 Revenue

1

SNC-Lavalin

$9,096,715,000

2

PCL Constructors Inc.

$8,035,673,000

3 EllisDon

$2,900,000,000

4

Aecon Group Inc.

$2,805,000,000

5

Ledcor Group of Companies

$2,040,900,000

6

Graham Group Ltd.

$2,000,000,000

7

Pomerleau Inc.

$1,631,000,000

8

Kiewit Canada Group Inc.

$1,421,983,000

9

Bird Construction

$1,418,400,000

10

Stuart Olson Inc.

$1,017,300,000

11

Flynn Group of Companies

$830,595,602

12

EBC Inc.

$759,000,000

13

Turner Construction Company

$545,780,000

14

Reliance Construction

$448,936,000

15

Axiom Builders Inc.

$435,000,000

16

Taggart Group of Companies

$375,000,000

17

Con-Drain Company (1983) Ltd.

$345,000,000

18

The State Group Inc.

$342,331,247

19

Chandos Construction

$325,000,000

20

Govan Brown & Associates Ltd.

$320,000,000

21

North American Construction Group

$292,000,000

22

Walsh Canada

$260,000,000

23

NorLand Ltd.

$192,369,000

24

Marco Group of Companies

$188,000,000

25

Buttcon Ltd.

$171,000,000

26

FWS Group of Companies

$170,000,000

27

Delnor Construction Ltd.

$164,830,000

28

Dawson Wallace Construction Ltd.

$160,000,000

29

Manshield Construction

$155,000,000

30

Avondale Construction Ltd.

$148,300,000

31

Scott Builders Inc.

$143,000,000

32

Wales McLelland Construction

$130,000,000

33

Newway Group

$125,000,000

34

Metro-Can Construction Ltd.

$120,000,000

35

Bockstael Construction Ltd.

$112,380,000

36

Fillmore Construction

$100,000,000

37

QM Environmental

$95,800,000

38

Acadian Construction Ltd.

$85,000,000

39

Priestly Demolition

$77,400,000

40

Traine Construction

$75,000,000

BASED ON WRITTEN RESPONSES TO RESEARCH CONDUCTED BY ON-SITE, AS WELL AS ON PUBLICLY AVAILABLE DATA. SOME CONTRACTORS DECLINED TO PARTICIPATE IN THIS RESEARCH.

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INNOVATION

SHEDDING TH OLD PARADIG Shifts in technology and business practices offer solutions to mounting challenges – if the construction industry can get on board BY JACOB STOLLER

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TOP CONTRACTORS

THE DIGMS T

he term “innovation” conjures up images of drones, virtual reality, state-of-the-art sensing technology and leading-edge building materials. These products, however, are only enablers – the real innovation is in the changes companies have to make to adopt them. Unlike manufacturers, contractors don’t develop their innovations in R&D departments. “Our organization doesn’t do lab research,” says David Filipchuk, CEO

of PCL Construction. “Most of the discoveries and innovations, technology or otherwise, in the way we execute work happen at the workspace.” Construction is essentially a collaborative enterprise, where diverse skill sets and resources must coalesce in real time. Compared with a controlled factory situation, a construction site is subject to far more variation,

making it susceptible to errors, rework, delays and cost overruns. The push to innovate, therefore, is about improving collaboration in order to reduce variation and create a better outcome for the customer. This involves breaking down silos and promoting a more team-like approach between owners, designers, consultants, general contractors and trade partners. “The future of construction is more collaborative and agile, with everybody working towards a common purpose,” says Mary Van Buren, president of the Canadian Construction Association (CCA). “That can lead to more innovation as well, because people are working collectively to solve problems, as opposed to inheriting what was given to them in the chain in front of them.” Innovation, Van Buren notes, has become a top priority for the CCA, which has helped establish institutes such as Canadian Construction Innovations (CCI), which fosters innovation in the industry. Recent CCI projects include a clearinghouse where industry stakeholders can share their innovations, information aimed at fostering the use of drones and an incubator for energy conservation in the heavy construction sector. Technology can play a significant role here. “The big advantage of [Building Information Systems] and other technologies like that is your ability to integrate

“Most of the discoveries and innovations, technology or otherwise, in the way we execute work happen at the workspace” – David Filipchuk, PCL Construction

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The

TOP CONTRACTORS

people’s work – that’s the game changer,” says Thomas Strong, chief technology officer at EllisDon. When all the trade partners incorporate their plans into a 3D model, for example, this allows everyone to identify clashes and scheduling conflicts before they arise on the jobsite. “This way, we’re able to be proactive rather than reactive,” Strong adds. Construction, however, is widely criticized for being slow to adapt to the digital age. “I’m sure you’ve heard that construction is not a very productive industry,” Van Buren says. “Technology is one solution. However, BIM is not that widespread, even though it’s been around for 10 years.” One of the stumbling blocks is that traditional methods often remain the legal standard. “Our industry is not set up for working in a BIM/VDC environment,” says George Ikonomakis, national VDC and BIM manager for Bird Construction. “The industry still submits contract documents through hard copy or digital format draw-

“Canadian contractors are lucky in that there’s lots of work out there” – Juan Chica, Bird Capital

ings for tenders, so 3D model files are used as ‘reference only.’ This doesn’t allow us to take advantage of the intelligence that can be found in 3D models.” Still, there is no shortage of innovative techniques coming down the pike, according to Clint Kissoon, chair of the school of Construction Management at Toronto-based George Brown College. “The industry has embraced a lot of these ideas, but these are only the tools to innovate. The one thing we’ve not been able to look at is behaviours that determine how we adopt these new tools and processes.”

THE GENERATION GAP The biggest single challenge the industry

faces today is a massive shortage of skilled labour, fuelled by the impending retirement of 250,000 workers, or 20 per cent of the workforce, over the next decade. “As we continue to grow, hiring is a very real challenge,” says Patrick Stiles, Toronto-area regional vice-president at Pomerleau. “Canadian contractors are lucky in that there’s lots of work out there,” says Juan Chica, vice-president at Bird Capital. “Our challenge is related to qualified labour. Baby boomers are retiring, and as an industry we’re not very good at passing down their knowledge. We’re seeing this lack of qualified people for all players – contractors, consultants, architects, engineers, and owners. So we all need to adapt our management practices to the new reality of potential employees.” The need is not only to hire, but to ensure that industry knowledge, acquired over decades by employees who will soon retire, isn’t lost forever. To accomplish this, firms will have to bridge the generation gap between tech-savvy millenials and older workers who have not embraced technology. “Contractors have a huge problem hiring young talented people,” says Pouria Ghods, co-founder and president of Ottawa-based Giatec Scientific Inc., which provides concrete sensing technology for the construction industry. “There have been studies that have shown that people in the younger generation are not interested in working for companies that are not innovative and open to change. They’re hesitant to join the construction industry for that reason.” Even those who have chosen construction as their career choice are frustrated, Kissoon notes. “Our graduating students are going out there, but they’re not seeing the development they were expecting,” he says. “They’ve been trained to harness the new technology, but companies are

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TOP CONTRACTORS

showing this reluctance to change.” This isn’t just about using new tools – as Samil Junuzovic, project director at Bird Construction points out – technology is part of the work environment that millenials have grown up with. “With internet, and people having everything at their fingertips, everything is changing, not just construction,” he says. “Many of the senior superintendents are less reliant on current technology. But the younger folks want information.” The challenges of hiring younger workers, however, aren’t only related to technology. “The young generation has a very different perspective on the balance between private and work life,” Chica says. “That’s challenging, because if you have a deadline on a project, and need somebody to put in so many hours a day, some will say ‘that’s not for me.’” This can be especially problematic for larger firms that need to move specialized talent both around the country and internationally. “Construction requires talent mobility in a big way, but the demographic shift goes against that,” Filipchuk says.

“This is a situation that didn’t exist a decade ago.”

CREATING A DIVERSE WORKFORCE On the hiring front, many contractors are working more closely with the schools to understand the expectations of potential job candidates and help communicate the benefits of working in the industry. “We’re a part of industry-wide efforts to work with communities to encourage kids to see that construction and engineering are great career choices that lead to sustainable, well-paying jobs,” says Ryan Tones, a district manager at Kiewit Corp. “Employees want to work for a progressive, current, plugged-in company,” Filipchuk says. “Construction gets a bad rap for not being innovative, but that’s not entirely accurate. There’s lots of technology that’s being deployed in innovative ways, and that’s one of the ways we differentiate ourselves when we’re hiring.” Hiring isn’t just about attracting techsavvy millenials, however. Van Buren notes that women make up only three per cent of the construction workforce, and that some

segments of the population, including First Nations, are under-represented in the industry. “If you want innovation, you need diversity,” Van Buren says. “You need different experiences. You need people who are looking at problems in a different way. So having a more diverse workforce will help with adoption and innovation.” One of the challenges of improving knowledge transfer from more experienced workers is making the technology accessible to people who have yet to embrace the digital age. The key is to make it less threatening, according to Tanner Clark, director of BIM/VDC Construction Services at Calgary-based Stuart Olson. “When I’m speaking about applying technology to our projects, I try to use common language that everyone will understand,” he says. “I explain that we are using the same information we have always used, but that the new technology will help us see things we weren’t able to see before, so we can quickly and clearly identify potential concerns before they arise on the jobsite.” Another point Clark emphasizes is getting subcontractors to see the advantages. “When you get your trade partners to use the system to work through any issues before they get on site, that helps them understand the benefits,” he says. “And the next time we work with that firm, they’re ready to go. That’s the innovation push that’s driving our industry forward.” BIM systems can also help transfer knowledge from older workers to the younger generation. For example, as Clark points out, a 3D model is a great visual teaching tool where a more experienced worker can show a younger colleague what will work on the jobsite and what won’t.

STRIVING TOWARDS A WIN-WIN The skills crunch facing the industry may

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be a blessing in disguise. As the industry strives to better suit the needs of younger workers, it is being forced to take on its perennial silo problem that not only produces suboptimal outcomes for customers, but causes untold stress in the work environment. The change has the potential to create great opportunities for workers at all levels to get involved in interesting and challenging work that will help move the industry forward. “We’re seeing a cultural shift away from ‘let’s just get the job done and move on,’” Clark says, “to a culture where we take the information that we have at our fingertips and use it to enhance our processes, and deliver things in a much more effective way.” Another trend is a push to establish collaborative relationships earlier on in the

“We’re seeing a cultural shift away from ‘let’s just get the job done and move on’” – Tanner Clark, Stuart Olson

project cycle. “Teaming up early on allows us to establish better strategies to match our clients’ expectations and deliver a better overall product,” Stiles says. Many firms, including PCL, are implementing lean construction methodologies, which help break down silos and create a more holistic approach. “The main benefit of lean is that it approaches the project as a whole, versus the more traditional method where you’re concerned about what we call local optimization,” says Justin Bova, president of Winnipeg-based lean construction firm Pretium Projects

Ltd. “Lean forces people to sit down in a room and solve problems together. That increases teamwork, morale, and project momentum, and ultimately ensures better value for the client.” Innovation in the construction industry is, as noted earlier, not confined to a designated group, so there are lots of opportunities for people to innovate. “Every jobsite has the potential for innovation,” Strong says. “The challenge is capturing those innovations on the jobsite level, and identifying which ones it makes sense to operationalize across the rest of the business.” “It’s our role as managers to give our people permission to explore, innovate, and make those small bets in the interest of breaking the old paradigms, and finding better and more innovative ways to execute,” Filipchuk says.

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TOP CONTRACTORS

KEY TAKEAWAYS

CANADIAN CONTRACTORS

OPTIMISTIC ABOUT FUTURE AS INFRASTRUCTURE FOCUS INTENSIFIES On-Site’s annual Top Contractors survey has rarely extracted such a rosy outlook from the nation’s top construction companies. After several tough years, business investment, housing demand and public spending may have finally aligned for contractors in all segments of the construction business. Firms across the country are preparing to take advantage.

An overwhelming majority of contractors projected growth or no change in

ALL 23

of the business areas we measured

Approximately

60,000

Canadians employed by the 2017 Top 40 Contractors

68%

of contractors expect the market for commercial buildings to grow in 2018 The 2017 Top 40 Contractors accounted for more than

$40

57%

billion in revenue

of contractors anticipate an increase in roadbuilding

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Bridges Commercial buildings Contract management Demolition Design/build Electric power/utilities Industrial buildings Institutional buildings Mining-related construction Oil and gas-related construction Residential construction: houses Residential construction: multi-unit Roadbuilding Sewage engineering construction Waterworks engineering construction

0%

20% Increase

No change

40%

60%

80%

100%

Decrease

ors

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TOP CONTRACTORS

ACADIAN

CONSTRUCTION LOOKS TO CORNER THE MARKET IN ATLANTIC CANADA East Coast contractor storms to the top of On-Site’s Top 5 Under 50 BY DAVID KENNEDY ACADIAN CONSTRUCTION IS RIDING HIGH. The New Brunswick contractor more than doubled its revenue in 2017, booking $85 million in sales over the course of the year, compared to $40 million during the previous 12-month period. The strong growth catapulted Acadian to the top of On-Site’s tally in the 50 of fewer employees category. Matthew Carreau, the company’s director of operations, described 2017 as a “banner year” for Acadian. “It’s really us performing and really building that relationship with the clients for the best project experience – that’s what’s been the difference with us the past little while,” he said. Based in Dieppe, N.B. – part of the Moncton metro area – the family-owned company has a 60-year history in the province and has since branched out to other markets across Atlantic Canada. Its current business breaks down to about 40 per cent industrial, 40 per cent multi-unit residential and 20 per cent commercial. It has 49 employees on payroll, though that figure is subject to the usual seasonal fluctuations. Along with building strong relationships with clients, subcontractors and consultants, the company owes some of its 2017 success to a new, quickly emerging Canadian industry. With the marijuana business poised to boom, Acadian has got in on the action. After booking some preliminary work for an unnamed medical marijuana firm, the contractor was able to keep itself involved with the client as the scale of the project

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TOP CONTRACTORS

TOP 5 UNDER 50 1 Acadian Construction Ltd. Location: Dieppe, N.B. 2017 Revenue: $85,000,000 Sectors: Non-residential building construction and residential building construction Works In: Institutional, commercial, industrial and multi-residential Website: www.acadianconstruction.com

2 AMAN Builders Location: Sherwood Park, Alta. 2017 Revenue: $64,100,000 Sectors: Construction management and non-residential building construction Works In: Institutional, commercial and multi-residential Website: www.amanbuilders.ca

3

4

5

Rosati Group Location: Windsor, Ont. 2017 Revenue: $46,028,764 Sectors: Construction management and non-residential building construction Works In: Institutional, commercial, industrial demolition and multi-residential Website: www.rosatigroup.com

JR Certus Construction Co. Ltd. Location: Vaughan, Ont. 2017 Revenue: $37,000,000 Sectors: Non-residential building construction and residential building construction Works In: Institutional, commercial, industrial and multi-residential Website: www.jrcertus.com

KF Construction Inc. Location: Laval, Que. 2017 Revenue: $34,548,000 Sectors: Non-residential building construction and residential building construction Works In: Institutional, commercial, industrial and multi-residential Website: www.kfconstructioninc.com

grew. From an initial deal worth about $5 million, Acadian now expects work on the project to be worth about $70 million over the next couple of years. The emerging industry is one example of how the evolving Canadian economy is creating new opportunities for contractors. Among other projects, Carreau pointed to a recently-completed skating oval in Acadian’s hometown of Dieppe and a new $15 million contract to build a community centre in Moncton as two recent jobs the company is particularly proud to be a part of. With a small sales staff, Acadian focuses its resources only on projects it identifies as the right fit for its team. “We don’t take a shotgun approach to bid all kinds of jobs and swing for the fences every time and hope we land one,” Carreau said, adding that the strategy has translated to a very healthy “batting average.” The company also recently implemented Procore Technologies’ construction management software, a move it says has allowed it to streamline its processes and better connect all parties involved in a project. After raising the bar last year, Acadian has no intention of sitting still. The company aims to grow its revenue by between 25 per cent and 50 per cent in 2018 while continuing to expand to new areas in Atlantic Canada.

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TOP CONTRACTORS

LISTINGS

A Acadian Construction 671 Malenfant Blvd. Dieppe, NB E1A 5T8 T: 506-857-1909 www.acadianconstruction.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Aecon Group Inc. 20 Carlson Court Toronto, ON M9W7K6 T: 416-297-2600 www.aecon.com A, B, D, E, F, G, H, J, K, M, N, Q, R, S, T, W, X, Y, Z AMAN Builders 244-2301 Premier Way Sherwood Park AB T8H 2K8 T: 780-999-8638 www.amanbuilders.ca C, F, M, N, O Avondale Construction Ltd. 49 Hobson Lake Drive Halifax, NS B3S 0E4 T: 902 876-1821 F: 902 876-1822 www.avondaleconstruction.com C, F, H, M, N, O, U, V Axiom Builders Inc. 1100-838 W. Hastings St. Vancouver, BC V6C 0A6 T: 604-412-0459 www.axiombuilders.ca C, M, V

B Bird Construction 5700 Explorer Drive Mississauga, ON L4W 0C6 T: 905-602-4122 F: 905-602-1516 www.bird.ca A, C, E, F, H, M, N, O, R, S, T, V, X, Y, Z

Bockstael Construction Ltd. 200-100 Paquin Road Winnipeg, MB R2J 3V4 T: 204-997-4730 www.bockstael.com C, F, H, M, N, O, V, Y Buttcon Ltd. 401-8000 Jane Street, Tower B Concord, ON L4K 5B8 T: 905-907-4242 F: 905-907-8096 www.buttcon.com C, F, H, M, N, O, V

C Caruana Interiors and Contracting 9-8 Riel Dr. St. Albert, AB T8N 3Z7 T: 780-935-5831 www.caruanainteriors.ca C, M, U, V Chandos Construction 9604-20 Avenue NW Edmonton, AB T6N 1G1 T: 780-436-8617 www.chandos.com C, F, G, H, M, N, O, V Con-Drain Company (1983) Ltd. 30 Floral Parkway Concord, ON L4K 4R1 T: 905-669-5400 F: 905-669-5040 www.condrain.com A, W, X

D Dawson Wallace Construction Ltd. 4611 Eleniak Rd. Edmonton, AB T6B 2N1 T: 780-466-8700 F: 780-466-9614 www.dawsonwallace.com C Delnor Construction Ltd. 3609-74 Avenue Edmonton, AB T6B2T7 T: 780-469-1304 F: 780-466-0798 www.delnor.ca C, N, O, M

ACTIVITIES The following letter codes are used to indicate areas of activity for the contractors in the listings on these pages. A Aggregates B Bridges C Commercial Buildings D Communication Engineering E Concrete F Contract Management G Demolition H Design/Build J Electric Power/Utilities K Environmental Remediation M General Contracting N Industrial Buldings O Institutional Buildings Q Marine-Related R Mining-Related S Oil and Gas-Related T Other Transportation Construction U Residential Houses V Residential Multi-Unit W Roadbuilding X Sewer Y Structural Steel Z Waterworks

Dominion Divers Marine Contractors 19 Archibald Street Winnipeg, MB R2J 0V7 T: 800-599-4933 F: 204-233-1258 www.dominiondivers.ca B, J, K, Q

E Earth Max Construction Inc. 9154 E Road 73N Stony Mountain, MB R0C 3A0 T: 204-344-5760 F: 204-480-1683 www.earthmax.ca X, M EBC Inc. 1095 Valets Street L’Ancienne-Lorette, QC G2E 3M3 T: 418-872-0600 F:418-872-8177 ebc@ebcinc.qc.ca B, C, R, T, V, W, Z

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EllisDon 1000-1004 Middlegate Rd. Mississauga, ON L4Y 1M4 T: 905-896-8900 www.ellisdon.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z

F Fillmore Construction 9114 - 34A Avenue Edmonton, AB T6W 2M5 T: 780-235-6014 www.fillmoreconstruction.com C, N, O Flynn Group of Companies 6435 Northwest Drive Mississauga, ON L4V 1K2 T: 905-671-3971 F: 905-671-3973 www.flynncompanies.com C, N, O Frey Building Contractors 3435 Broadway Street Hawkesville, ON N0B 1X0 T: 519-699-4641 F: 519-699-4875 www.freybc.com C, H, M, N, O, U FWS Group of Companies 275 Commerce Drive Winnipeg, MB R3J 3N7 T: 204-487-2500 www.fwsgroup.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z

G Gallaugher Contracting Ltd 30 Industrial Parkway South Aurora, ON L4G 3W2 T: 905-727-5758 www.gallaughercontracting.com C, M, N, O, U

GEN-PRO 2211 Plains Road East Burlington, ON L7R 3R3 T: 905-333-5217 F: 905-333-6746 www.genpro.ca A, E, F, H, M, Y Govan Brown & Associates Ltd. 108 Vine Avenue Toronto, ON M6P 1V7 T: 416-703-5100 F: 413-703-5200 www.govanbrown.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Graham Group Ltd. 10840 27 Street SE Calgary, AB T2Z 3R6 T: 403-570-5231 F: 403-570-5030 www.grahambuilds.com B, C, D, F, G, H, J, K, M, N, O, Q, R, S, T, V, W, X, Z Grascan Group of Companies 61 Steinway Blvd. Toronto, ON M9W 6H6 T: 416-644-8858 F: 416 644 8864 www.grascan.com B, G, H, M, W Grayveld Builders Corp. 42 Campbell Ave. Oro-Medonte, ON L0L 1T0 T: 705-487-1659 www.grayveld.com C, N

J Jacob Bros Construction 3399 189th Street Surrey, BC V3Z 1A7 T: 604-541-0303 www.jacobbros.ca B, C, E, F, H, J, M, N, O, Q, S, T, U, V, Q, X, Z J. R. Hendry Contractor Ltd. 2055 Kingsway Sudbury, ON P3B 4K2 T: 705-560-4241 F: 705-560-4245 www.jrhendryltd.com K, Q, S

JR Certus Construction Co. Ltd. 3-81 Zenway Blvd. Vaughan, ON L4H 0S5 T: 647-494-0150 F: 647-494-0155 www.jrcertus.com C, F, H, M, N, O, V

K K F Construction Inc. 201-1410 Rue de Jaffa Laval, QC H7P 4K9 T: 450-681-8338 F: 450-681-7612 www.kfconstructioninc.com C, M, N, O, U, V Kiewit Canada Group Inc. 200-10333 Southport Rd. Calgary, AB T2W 3X6 T: 403-693-8701 F: 403-267-2339 www.kiewit.ca A, B, D, E, H, J, K, M, N, Q, R, S, T, W, X, Y, Z Kinetic Construction Ltd. 201-862 Cloverdale Ave Victoria, BC V8X 2S8 T: 250-381-6331 www.kineticconstruction.com C, H, M, O, V

L Ledcor Group of Companies 1200-1067 West Cordova Street Vancouver, BC V6C 1C7 T: 604-681-7500 F: 604-681-9700 www.ledcor.com C, D, K, M, N, O, R, S LeDonne Construction Inc. 177 Yonge Blvd. Toronto, ON M5M 3H5 T: 416-347-3538 www.ledonne.ca A, C, F, M, U

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LISTINGS

TOP CONTRACTORS

M Madesin General Contractors Eglinton Ave East Mississauga, ON L4W 1K5 T: 905-625-3617 F: 905-625-1975 www.madesin.com C, M Manshield Construction 955 Cobalt Cr. Thunder Bay, ON P7K 1B9 T: 807-346-1650 F: 807-346-1654 www.manshield.com C, F, H, M, N, O, U, V Marco Group of Companies 78 O’Leary Avenue St. John’s, NL A1B 4B8 T: 709-754-3737 F: 709-754-3715 www.marcogroup.ca C, F, H, M, O Metro-Can Construction Ltd. 520-10470-152nd Street Surrey, BC V3R 0Y3 T: 604-583-1174 F: 604-583-3321 www.metrocan.com C, N, O, V MTN General Contractors 2302-20 Patterson Buck S W Calgary, AB T3H 1W9 T: 403-819-1323 www.mtngeneral.com C, M

N Newway Group 3750 First Ave. Burnaby, BC V5C 3V9 T: 604-299-3709 F: 604-299-6209 www.newwayforming.com C, E, F, O, V, X NorLand Ltd. 3183 NorLand Avenue Burnaby, BC V5B 3A9 T: 604-205-7600 F: 604-291-2813 www.norlandlimited.com B, C, D, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Z

North American Construction Group 26550 Acheson Road Acheson, AB T7X 6B2 T: 780-969-3478 www.nacg.ca F, G, H, J, K, M, R, S, W North Construction 378 Esplanade E North Vancouver, BC V7L 1A4 T: 604-904-2300 www.north-construction.com A, B, C, E, F, G, H, J, K, M, N, O, Q, S, T, U, V, W, X, Y, Z

O O.N.Site Construction Inc. 23-2861 Sherwood Heights Drive, Oakville, ON L6J 7K1 T: 416-689-8851 www.onsiteconstruction.ca C, F, G, H, M, N, O, U, V On-Site Solutions Inc. 31-83 Galaxy Blvd. Toronto, ON M9W 5X6 T: 416-654-6000 www.onsitegc.ca C, O Owen King Ltd. 87 Brant Sideroad 15 Walkerton, ON N0G 2V0 T: 519-881-1771 F: 519-881-1585 www.owenkinglimited.com B, W

P PCL Constructors Inc. 9915-56 Avenue Edmonton, AB T6E 5L7 T: 780-733-5107 www.pcl.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z

St. John’s, NL A1B 3N4 T: 709-782-3404 F: 709-782-0129 www.pennecon.com B, E, F, J, M, Q, S, U, W, X, Z Pickard Construction PO Box 467 Errington, BC V0R 1V0 T: 250-248-5882 www.pickardconstruction.ca C, U Plainsman Builders Inc. 210-989 McGill Place Kamloops, BC V2C 6N9 T: 250-372-1544 F: 250-372-8445 www.plainsman.ca C, U, V Pomerleau inc. 521 6e Avenue Saint-Georges, QC G5Y 0H1 T: 418-228-6688 F: 418-228-3524 www.pomerleau.ca A, B, C, D, F, H, J, K, M, N, O, Q, R, S, T, W, X, Z Priestly Demolition 3200 Lloydtown Aurora Rd. King, ON L7B 0G3 T: 905-841-3735 F: 905-841-6282 www.priestly.ca A, B, C, F, G, H, K, M, N, O, R, S, T, U, V, W

Q QM Environmental 1-3580 Laird Rd. Mississauga, ON L5L 5Z7 T: 416-253-6258 F: 416-253-6699 www.qmenv.com E, F, G, K

Pennecon 1309 Topsail Road

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TOP CONTRACTORS

LISTINGS

R RAM Construction Inc. 101-8369 River Way Delta, BC V4G 1G2 T: 604-940-5265 www.ramconst.com C, F, G, H, M, N, O, U, V RDM Enterprises Group 207-20436 Fraser Highway Langley, BC V3A 4G2 T: 604-657-4523 F: 604-530-8959 www.rdmenterprises.com A, B, E, F, G, J, K, M, S, W, Y Reliance Construction of Canada Ltd. 3285 J.B. Deschamps Lachine, QC H8T 3E4 T: 514-631-7999 www.relianceconstruction.com C, F, H, M, N, V Rosati Group 6555 Malden Rd. Windsor, ON N9H 1T5 T: 519-734-6511 F: 519-734-7872 www.rosatigroup.com C, F, H, M, N, O, V

S Scott Builders Inc. 8105 49th Ave Red Deer, AB T4P 2V5 T: 403-343-7270 www.scottbuilders.com C, H, M, N, O, S, U, V SNC- Lavalin Inc. 455 René-Lévesque Blvd. West Montreal, QC H2Z 1Z3 T: 514-393-1000 F: 514-866-0795 www.snclavalin.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z

Stuart Olson Inc. 600-4820 Richard Road SW Calgary, AB T3E 6L1 T: 403-520-1594 F: 403-685-7777 www.stuartolson.com F, J, M, N, R, S Superior Buildings & Design Ltd. 8127 Roper Road Edmonton, AB T6E 6S4 T: 780-420-1752 F: 780-468-6691 www.superiorbuildings.ca C, H, N

T Taggart Group of Companies 3187 Albion Road Ottawa, ON K1V 8Y3 T: 613-521-3000 www.taggartconstruction.com C, F, M, U, V, X TerraEX Inc. 1942 Manawogonish Rd. Saint John, NB E2M 5H5 T: 506-672-4422 C, G, U, Z The State Group Inc. 3206 Orlando Drive Mississauga, ON L4V 1R5 T: 905-672-2772 F: 905-672-1919 www.stategroup.com H, J, N, S, T

V

VVI Construction 96 Cartier Street Revelstoke, BC V0E 2S0 T: 250-837-2919 F: 250-837-2919 www.vviconstruction.com C, J, N, U

W Wales McLelland Construction 6211 Fraserwood Place Richmond, BC V6W 1J2 T: 604-638-1212 www.walesmclelland.com C, F, H, M, N Walsh Canada 302-36 York Mills Rd. Toronto, ON M2P 2E9 T: 416-849-9000 F: 416-849-9100 www.walshgroup.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z Westridge Construction Ltd 435 Henderson Dr. Regina, SK S4N 5W8 T: 306-352-2434 F: 306-352-0199 www.westridge.ca B, C, F, H, M, N, O, X, Z

Traine Construction 500-1708 Dolphin Ave Kelowna, BC V1Y 9S4 T: 778 484 4949 www.traine.ca E, M, V Turner Construction Company 1601-700 West Pender Street Vancouver, BC V6C 1G8 T: 778-834-5936 www.turnerconstruction.com A, B, C, D, E, F, G, H, J, K, M, N, O, Q, R, S, T, U, V, W, X, Y, Z

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JUNE 2018

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MACHINE CONTROL

Machine Control

Advances New technology prompts an evolution of decades-old sensing systems BY NATE HENDLEY

T

here have been significant developments in machine control, driven by technological advancements and industry trends. Used on earthworks equipment since the mid-1990s, machine control systems utilize satellite network data and sensors to determine geographic coordinates and assess grade. Such systems can also automate equipment functions and link to online networks to share information. Initially, machine control was primarily installed on motor graders and bulldozers for grading purposes. In recent years, it’s become more common to see other construction equipment – particularly excavators – equipped with machine control. “There’s been a major swing with excavators … Traditionally, excavators were used as a loading device. Now they’re doing loading but can also do grading so there’s less cleanup work for the dozers behind,” says Jamal Mohammed, director of Sales and Professional Services at SITECH Mid-Canada, which distributes Trimble machine control systems. Kyle Birch, the machine control sales manager for Canada at Leica Geosystems, also emphasized the shift. “I know for a fact we’re selling more

excavator systems than we are dozer systems,” he says. “Dozers are still a huge part of the market but overall, for the year, we’re slightly more ahead on excavators than we are on dozers.” The growing popularity of machine control on excavators, according to Mark Jones, Western regional manager of Topcon Positioning Systems’ Construction business unit, comes down to simple economics. “The biggest return in the machine control sector is actually on an excavator,” he says. Excavator operators seeking to avoid reworking a section sometimes overcompensate and dig too deeply with their bucket, Jones says. This means more material has to be placed in the trench or foundation being dug, at additional cost to the contractor. On top of this, excavator operators have to exit their cab to check grade in a trench or wait while a labourer performs this task. By installing a machine control system, excavator operators can determine grade quickly, safely and accurately, leading to more precise digging and greater efficiency, Jones added. While the introduction of 3D technology in machine control has given oper-

ators a much more accurate view of the terrain they’re dealing with, 2D remains a mainstay. “All of our 3D machines have full 2D functionality built into them,” Birch says, adding that 2D equipment can also be upgraded to 3D. “We also have dedicated 2D systems that we run for dozers, graders, excavators and skid steer attachments.” Increasingly, machine controls are being installed right in the factory, ready for use as soon as the dozers, wheel loaders, excavators, and other pieces of equipment leave the plant. “You can get Case machines from the factory wired for Leica … You can get John Deere dozers that have full Leica wiring on them. You can order from the factory,” Birch says. He predicts the trend toward factory-installed machine control will continue. Most other major OEMs in the

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s construction sector, including Caterpillar, Volvo and Komatsu, also supply machine control-ready equipment for customers. At one time, highway construction firms were the main adopters of machine control in Canada. While highway builders probably still hold an edge, Birch says, contractors working on sewer and water projects have begun snapping up excavators with machine control as well. “That’s maybe contributed to why we’re seeing so many excavator sales. The sewer and water-main guys, they might have a dozer for cleaning up but typically their whole fleet is excavators,” Birch says. Unmanned Aerial Vehicles, better known as drones, are also increasingly being seen as a complementary asset to machine control systems. Drones can fly over worksites, recording and reporting production data and geographic coordinates. This information can be used

by operators or office staff to augment machine control data and performance. “A couple years ago, people started getting into drones because it was kind of neat,” Mohammed says. “A drone is able to do data collection a lot faster than doing a survey on the ground. You can fly a drone and in 20 minutes cover many different hectares … It becomes a data collection

unit that the customer can use.” Automation is another technology area experts are watching closely. “We’re moving to levels of autonomy where there’s one operator for many machines,” says Scott Crozier, general manager of Civil Engineering and Construction at Trimble Inc. “So you’ve got three or four dozers pushing large amounts on-sitemag.com / 49

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MACHINE CONTROL

NEW DEVELOPMENTS IN MACHINE CONTROL LEICA

of material on site. There might be one person on site controlling three to four dozers remotely.” Needless to say, this scenario would be limited to large construction sites – you won’t see it on a small site or in crowded urban areas, Crozier notes. For all the advantages such systems offer, most construction equipment currently in use in Canada isn’t equipped with machine control. This is largely due to the hefty price tag of the technology. Last year, Birch estimated that less than five per cent of existing earth moving equipment in Canada had machine control. Today, he said that figure may be hovering around 10 per cent. “Some of our big customers have a pretty high implementation rate,” he says. “Then other customers we have, they’ve got huge fleets and are only just getting into machine control. Plus there’s all the little guys with two machines, four machines that don’t have anything on them.” Insiders expect adoption rates to climb in the near-future, thanks to improved technology, the increased availability of factory-installed systems and contractual obligations that force contractors to adopt the technology. As more people understand and appreciate machine control, its implementation will become increasingly common, Jones adds. “The conversation now is, ‘if you’re in today’s game, this is what you need to have,’” he says.

Leica’s MCP80 3D machine control panel was released earlier this year, initially for use on curb and gutter and concrete machines. “Now it’s running all of our core machines – excavators, graders, dozers, wheel loaders, snow groomers. All of that is running with the MCP80 panel with docking stations,” Birch says. In the 2D segment, Leica recently released iGD CoPilot automatic dozer blade control, which can be used with a Leica iGD2 intelligent 2D grading system for dozers. CoPilot is designed to boost productivity by ensuring a dozer makes a smooth, straight push. The iGD CoPilot adjusts critical parameters automatically, leading to greater grading accuracy. Leica machine control systems can also be connected to ConX, the company’s cloud-based communications solution, which allows for the sharing and storing of data and other functions.

TOPCON

Topcon Positioning Group’s 3D-MC Max is a machine control system for bulldozers that utilizes a pair of IMU (Inertial Measurement Units) sensors for enhanced on-grade performance. 3D-MC Max-equipped dozers have GNSS (Global Navigation Satellite System) antennas mounted on the cab roof, removing the need for masts on the blade. This design feature enhances operator visibility, safety and productivity. According to Jones, there’s no need to install and remove antennas, masts or cables on a daily basis – a once time consuming activity. He describes 3D-MC MAX as the latest evolution in Topcon’s 3D MC line. As an option, Topcon’s machine controls can be connected online to Sitelink, the company’s communication network.

TRIMBLE

In March 2017, Trimble announced a pair of new generation grade control systems called Earthworks for excavators and Earthworks for dozers. “At the moment we just have the dozer system and excavator system out there but there’s been a significant increase in functionality added to that platform,” Crozier says. “Every quarter, we add new functionality.” Among other features, these systems can be installed on a wider range of machines from a wider range of manufacturers than previous generations. The excavator system offers 3D integrated aftermarket excavator automatics capability – described as an industry first. This makes it easier for operators to cut to grade then hold grade, increasing accuracy and efficiency, Crozier says. Earthworks for dozers also features twin-mounted GNSS receivers on the cab roof, rather than the blade. Both products run on an Android operating system. “Trimble develops its own Android display specifically for the industry,” Crozier notes. “Typically we find contractors want to have a rugged and built-for-purpose display, which is what Trimble provides.”

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EQUIPMENT MANAGEMENT

GETTING THE MOST FROM YOUR

RENTAL When does renting equipment beat out ownership? BY DAVID KENNEDY

A

t one time, the type of work contractors could complete was largely limited to the type of equipment in their arsenal. That’s no longer the case. From small local shops to the big national chains, the equipment rental industry has come a long way. The days of getting little more than a set of keys, a return date and the go-ahead to drive off the lot are long gone. “You might have done that a long time ago, but that doesn’t work any more,” says Jeff Campbell, the owner of St. Thomas Rent-All in southwestern Ontario. “As the business has evolved, rental centres have become far more than locations that simply hand out the keys to a piece of machinery.” Today, Canadian contractors looking for an extra piece of equipment during peak times, a specialized attachment, or both a machine and a skilled person to operate it, can tap into rental houses across the country. Far more than a way to avoid the capital cost of a new skid steer or excavator, the rental business has become an integral part of how construction projects are delivered on time and on budget. “It’s a service industry,” says Campbell, who is also a long-time member and former president of the Canadian Rental Association. “You solve problems. You help people get the job done.”

DOING MORE WITH LESS A new piece of machinery costs tens of thousands to hundreds of thousands of dollars. Even with financing, such a significant bill can make ownership impractical and unnecessary for many contractors. “If you have a really good rental partner, it makes it easy to expand and do more work as a contractor without having to make the capital commitment,” says Jordan Reber, senior vice-president of Rental and Strategy at Finning Canada. Finning oversees the Cat Rental Store, which rents and leases Cat machinery exclusively. It typically targets contractors

on the cusp between renting and buying outright. Reber breaks down the rental market into two main segments. One side consists of contractors that have picked up more work than usual and need an extra machine to supplement their fleets. The other part is made up of contractors looking for unusual attachments, or a big machine like a long-range excavator that’s needed for a specific, one-time task. While the first type of contractor may eventually grow into buying a machine, those looking for specialty equipment or on-sitemag.com / 53

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EQUIPMENT MANAGEMENT attachments may never be able to justify the purchase. “You’re never going to have enough hours to make a lot of those things pay, especially on bigger machines,” Reber says. “It’s just a rental-first market.” The Toronto-based Amherst Group’s mobile cranes and mobile concrete pump trucks are case in point. One of the largest rental businesses of its kind in the province, Amherst rents its machinery along with an operator, making it akin to a “taxi service,” according to Vice-President Valerie Brennan. “There was a time when the general contractors did own most of the mobile equipment that they used on job sites, but it evolved,” she says. “They found it a burden, simply because of the specialized nature of it and the training that’s required.” With fewer and fewer contractors able to justify the big-ticket crane and pump truck purchases, Amherst and its competitors have stepped in to help bridge the gap. To add an extra level of service, the company also sends its estimators free of charge to the job sites of prospective clients, giving them the chance to size up a project and determine what type of machinery would best match the job. Amherst, and other rental businesses like it, allow contractors to avoid tying up precious capital on machinery they don’t require every day, giving them the ability to focus on their core competencies.

PLAYING TO YOUR STRENGTHS Even when it comes to machinery far smaller and less expensive than mobile

cranes or pump trucks, the services offered by rental houses can be enough to tip the scales toward renting or leasing as opposed to buying. On-site machine maintenance is one key offering. “If [our customers] have a piece of equipment and it breaks down, it’s a matter of a phone call and there’s another piece of equipment coming out as well as a mechanic looking at it,” Campbell says. St. Thomas Rent-All serves small- to medium-sized contractors, mainly in Ontario’s Elgin County, but it shares this quick-response maintenance guarantee with rental houses of all sizes across the country. “In the event of a breakdown… we would ensure mechanics are deployed directly to the site to make sure that there’s no down time or… just swap out [the equipment] to ensure the productivity of our customer base remains at a high level,” says Earl Ducharme, the vice-president for Canada at HERC Rentals Inc., which

Instead of owning a machine that gets a little older with each project, renting typically gives contractors a piece of machinery early in its lifecycle. It’s difficult to quantify the exact value this creates for HERC’s customers, Ducharme says, but allowing contractors to add the most innovative products to their arsenal without the inhibitive capital cost of buying certainly gives contractors an edge. “That’s why we think the [rental] market is growing organically,” he says. “We challenge the model within many organizations of owning versus renting.”

A ONE-STOP SHOP Leveraging a good rental house’s expertise in everything from machine selection to maintenance scheduling allows contractors to focus on what they do best. Taking advantage of the safety and equipment training they offer is yet another opportunity. The larger players in the rental industry in particular have embraced training as a way to add to their value proposition.

“There was a time when the general contractors did own most of the mobile equipment that they used on job sites, but it evolved” – Valerie Brennan, Amherst Group operates Hertz Equipment Rental locations across Canada. It’s all about increasing productivity, Ducharme says, pointing to how costly labour has become for HERC’s clients. Work hours lost due to non-functioning machinery is a significant and often preventable cost for Canadian contractors of all sizes. Relying on in-house maintenance teams is not always the most efficient solution. Along with regular upkeep and emergency maintenance, big rental houses like HERC, which has operations in eight Canadian provinces, often have access to the latest equipment and technology.

“Any of the tools that we rent, we would train on,” Ducharme says, noting courses are often in-classroom, but can also be done on job sites. “We have a complete department and a complete staff right across the country nationally that brings that to the marketplace.” Along with equipment-focused training, HERC offers safety courses such as aerial platform training, Workplace Hazardous Materials Information System (WHMIS) training, fallout training and silica dust training. Many other national, regional and local rental shops offer similar courses to ensure equipment is operated properly. With job site health and safety more important than ever, the services can help contractors make sure all employees are up to code. Enlisting well-trained rental staff like

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TAK-GE

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EQUIPMENT MANAGEMENT Amherst Group’s crane and pump truck operators at the same time as renting machinery is another way to keep sites safe and personnel costs down. Training for crane operators in Ontario, for instance, lasts no less than three years, and the pump truck business is moving in a similar direction, according to Valerie Brennan. Between the cost of the equipment and the cost of keeping skilled workers on payroll, turning to rentals in such a specialized market is an easy decision for most contractors. The rental model has also played an important role in boosting safety in the crane and pump truck segments of the construction industry, Brennan added.

With only the most active and experienced operators left on job sites, accidents are kept to a minimum.

WHEN TO PARK THE RENTAL AND BUY OUTRIGHT There’s no infallible answer to this age-old question, but there are a few benchmarks contractors should keep a close watch on. The scale of a company plays a major role in the decision. Particularly for smaller firms, having access to capital is a must, while the cost of that capital will also determine how easily the purchase can be justified. Often overlooked logistical costs, such as space to store an idle machine and transport the equipment from job site to job site, are also factors.

But ultimately, it’s all about usage. As Ducharme put it, ownership gives renting a run for its money when contractors have a core business to support that will keep a certain piece of equipment busy. He put the magic number at about 75 per cent – that is, if a contractor can keep the equipment active three-quarters of the time, it’s likely time to seriously consider setting aside the capital funds and buying. Jordan Reber, meanwhile, looks to his stopwatch to weigh the cost of ownership against long-term renting or leasing. Though there are always a number of mitigating factors at play, he says 200 to 250 hours of use per month is where the clock typically “clicks over” toward owning.

ADVERTISERS’ INDEX & WEBSITES Adrian Steel..........................www.AdrianSteel.com.................................................... 20

Kubota Tractors.....................www.kubota.ca.............................................................. 63

Ahearn Canada.....................www.ahearncanada.ca.................................................. 52

Mack.....................................www.MackTrucks.com.................................................... 35

AON.......................................www.aon.ca............................................................. 28, 41

Navistar................................www.InternationalTrucks.com/A26................................. 57

B2W Software........................go.b2wsoftware.com/ONE.............................................. 18

PCL.......................................www.PCL.com................................................................ 30

Case......................................www.CaseCE.com/TryCASE............................................ 61

PlanGrid................................www.plangrid.com......................................................... 37

Detroit Diesel........................www.westernstar.com/engines...................................... 23

Procore..................................www.procore.com........................................................... 26

Ford.......................................www.ford.ca/builtforbusiness.......................................... 6

Putzmeister...........................www.putzmeisteramerica.com....................................... 11

Freightliner...........................www.Freightliner.com.................................................. 2, 3

Roadtec.................................www.roadtec.com.......................................................... 51

Husqvarna............................www.husqvarna.com/ca-en........................................... 25

Takeuchi................................www.takeuchi-us.com................................................... 55

Intact Insurance....................www.intact.ca................................................................ 20

Topcon...................................www.topconpositioning.com/SMOOTHRIDE.................... 14

IPS........................................www.ipspower.com........................................................ 13

Vacuworx...............................www.vacuworx.com........................................................ 39

John Deere.............................www.JohnDeere.ca/MMC.................................................. 4

Victaulic................................www.victaulic.com......................................................... 44

Kobelco.................................www.kobelco-usa.com................................................... 16

Viewpoint..............................www.VIEWPOINT.com/control.......................................... 64

KPI/JCI...................................www.kpijci.com............................................ 15, 17, 19, 21

Volvo Trucks..........................www.volvotrucks.ca......................................................... 9

Kubota Engine.......................www.KubotaEngine.com/Success.................................. 59

Western Star..........................www.westernstar.com.................................................... 22

56 / JUNE 2018

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NOTES: Resize JAN Kelley Marketing, its employees and agents (collectively referred to as “JKM”) shall not be held liable for any loss or damage suffered by you, or by any third party, from the use of these marketing materials (the “Materials”) if they have been modified, distorted, combined with third party content, or manipulated in whole or in part by any party other than JKM. Further, once the proof of the Materials has been approved by you, JKM shall not be liable for any loss or damage suffered by you or any third party arising from any alleged or actual defect in the Materials or in any way arising from their reproduction by a party other than JKM.

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MATERIALS

Tall wood buildings on the rise at Canadian universities BY JILLIAN MORGAN

T

PHOTO: MJMA/PATKAU ARCHITECTS

PHOTO: MORIYAMA & TESHIMA ARCHITECTS/ACTON OSTRY ARCHITECTS)

he University of Toronto has unveiled plans to construct to offset the costs associated with four mass timber projects in the a 14-storey wood building on its St. George campus, province, including U of T’s tower and The Arbour. located in the city’s downtown. Under Natural Resources Canada, the Tall Wood Building Slated for construction at the end of 2019, the tower Demonstration Initiative funded two tall wood construction projects, is expected to be the tallest mass timber-concrete hybrid building including Brock Commons, from 2013 to 2017. in North America, although U of T is just the latest school to opt for Starting in April 2018, $40 million in funding will be available wood. for mass timber construction via the Green Construction through At George Brown College, development is underway on The Wood program. Arbour, a $130 million, 12-storey mass timber academic building, Research projects and the adoption of wood construction in the to be constructed on Toronto’s waterfront. On the West Coast, the 2015 National Building Code (NBC) are among other efforts from University of British Columbia’s $51 million 18-storey residence federal and provincial governments to increase wood construction. tower, Brock Commons Tallwood House – currently the tallest mass Building codes in British Columbia, Quebec, Ontario, Alberta timber building in the world – opened in July 2017. and Nova Scotia have been amended to allow mid-rise wood frameThe popularity of wood construction is due, in part, to its construction. sustainability. Wood offers improved energy performance and emits fewer greenhouse gasses over its lifecycle. Other benefits include cost-savings and ease of assembly. A crew of nine constructed Brock Commons four months ahead of schedule – 70 days after prefabricated components arrived on site. At U of T, many of the tower’s components will also be manufactured off-site. The Arbour, which George Brown hopes will classify as net-positive, takes these benefits a step further through the incorporation of green technology, such as solar chimney systems used to power ventilation. It will also be equipped with smart building systems. Still in the design phase of development, U of T’s tower, to be built with cross-laminated timber, will sit above the Goldring Centre for High Performance Sport and house academic units. It will be financed in part by federal and provincial tall wood building Patkau Architects, in partnership with MacLennan Jaunkalns Miller Architects (MJMA) and Blackincentives. well Structural Engineers, will design U of T’s tower. Inset: At a cost of $130 million, The Arbour will be the first project of its kind in Ontario. Construction is scheduled for 2021. Ontario is providing up to $2.45 million

58 / JUNE 2018

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RISK By David Bowcott

The power of project monitoring in preventing and mitigating risk

Y

our construction project is made up of several sources of capital that turn concepts dreamt up on paper into tangible structures. Without these sources of capital, and the people behind that capital who believe in your project’s success, your project would not be built. These sources of capital have internal and external gatekeepers that review all aspects of your project and render a decision on the terms you will be required to meet in order to gain access to their reality-making capital. Further, once that capital is committed, the sources will sometimes monitor the progress of your project to ensure things are progressing as per the plan. This monitoring is what I’d like to focus on in this article as it can hold tremendous value for all project stakeholders and can be used to more effectively prevent and/or mitigate risks from manifesting that can ultimately take a project off-track.

THE THREE PRIMARY SOURCES OF CAPITAL INCLUDE: Project equity – The initial funds utilized to cover the costs associated with designing and constructing the asset prior to the asset generating revenue. In the capital structure, often made up of both equity and debt, the equity portion is often more at risk in comparison to the debt and thus would require a higher return on their investment. Debt – Often issued in conjunction with equity to provide full funding for the capital expenses required to build the asset. Debt has a priority position over assets involved in the project and balance sheets of key parties responsible for building the asset. Risk capital – The insurance and performance security being supplied primarily from the insurance sector. This source provides capital in the event specific risks manifest on the project that result in additional direct and indirect costs. Examples of such insurance and performance security include: builders risk insurance, wrap-up/general liability insurance, professional liability insurance, environmental liability insurance, subcontractor default insurance and surety bonds. As mentioned above, each source of capital has gatekeepers that approve the deployment of their capital (underwriting) and, further, will sometimes oversee the execution of the project to ensure that all aspects of the project related to their commitments remain on-track. For the purposes of this article I want to focus on this project monitoring process. Specifically, who does this monitoring and how can this monitoring be utilized to prevent and mitigate risks? These players perform the monitoring roles for most projects:

Equity monitoring – Often project monitoring is done directly by the equity. The equity will have employees versed in designing and building assets and these folks will require frequent meetings and updates with key project stakeholders like the design firm, the prime contractor and key subcontractors. Sometimes the equity does hire third parties to complement their own monitoring. With design-bid-build projects, for instance, the equity may contract a design firm and include monitoring services as part of their role. Debt/lender technical advisory – Often referred to as the LTA, this group is usually a third party that provides frequent updates to the debt on the project. The debt often does not have the expertise to monitor the project and hires third parties to monitor the project through documentation, updates and meetings. Debt/lender insurance advisor – In some cases the debt hires a third party insurance advisor to ensure the necessary insurance solutions are in place and to assist in claims processing. Insurance and performance security monitor – Though currently less frequently utilized on projects, there is growing interest by insurers to utilize monitors that allow the insurers to prevent and mitigate claims by seeing potential claims manifest through monitoring activities. All of these monitors tap into progress documentation related to the project. Often these monitors are given direct access to a project enterprise technology that provides varying levels of transparency into the project’s progress. These project platform technologies also manage documentation flow and communication amongst all key stakeholders. Project monitoring services provided by the above sources include: general consultancy services, milestone monitoring, budget monitoring, quantity surveying, schedule monitoring, audit, quality assurance/quality control, testing and commissioning monitoring, material testing, general documentation and photo reporting services. Transparency can be intimidating to design and construction stakeholders, but it can also be very helpful as some of these sources of capital will gladly mitigate their risk through early commitments to solve problems. Couple the monitoring sources referenced above with new technology that stakeholders can access and you have the ability to see the train coming from a mile away and thus take the necessary steps to avoid catastrophic impacts.

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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CASE WOULD LIKE TO CONGRATULATE ON-SITE’S 2018 TOP CONTRACTORS. You’ve worked hard to claim your spot among this elite crowd and we know part of this success comes from having the right equipment. Not only is our all-new lineup of dozers, excavators and wheel loaders more powerful, intuitive and fuel saving than ever before, each comes STANDARD with CASE ProCare—3-yr/3000-hr full machine factory warranty, 3-yr/3000-hr planned maintenance and 3-yr Advanced SiteWatch™ subscription. It’s time you rediscovered CASE.

Schedule a machine walkaround or demo at:

CaseCE.com/TryCASE ProCare is a factory fit program available on new heavy machine orders. ©2018 CNH Industrial Canada Ltd. All rights reserved. Case is a trademark registered in the Canada and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates.

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2018-06-06 2018-05-2412:10 9:03PM AM

CONTRACTORS & THE LAW By Alexander J. Spraggs

Fundamentals of materials liens PAYMENT FOR MATERIALS IN CONSTRUCTION CONTRACTS In a typical subcontract, a subcontractor will periodically, throughout the duration of their work on or supply for the project, apply for payments at a value proportionate to the amount of the subcontract work performed and/or the materials delivered to project. This means that many, if not most construction contracts, require a supplier of materials to have delivered materials to a project site before they are paid for those materials. This arrangement places the risk of a defaulting materials purchaser squarely on the materials supplier. Fortunately, throughout Canada, lien legislation gives those who provide materials to construction projects a lien for the value of the material. In Ontario, for example, “[a] person who supplies services or materials to an improvement for an owner, contractor or subcontractor, has a lien upon the interest of the owner in the premises improved for the price of those services or materials.”

WHAT ARE “MATERIALS?” In general, “materials” can be defined as the goods supplied to a construction site that are to be used for the construction of the project. For instance, in British Columbia, the word “material” is defined as “moveable property that is delivered to the land on which the improvement is located and is intended to become part of the improvement, either directly or in a transformed state, or is consumed or used in the making of the improvement, including equipment rented without an operator.” It is important to note that definitions vary from province to province. In Manitoba “material” includes property that isn’t yet on the construction site, but has been made to contract specifications and delivered to the contractor or subcontractor for use in performance of the contract or subcontract. In Saskatchewan, “material” does not include rented equipment. While Northwest Territories, Yukon, Alberta, New Brunswick and Prince Edward Island do not contain definitions of the word “material,” all provinces do give persons supplying materials in accordance with that province’s respective legislation some manner of lien for the purchase price of those materials.

not be able to enter into the construction site lawfully without the owner’s permission. Fortunately, builders lien legislation across Canada typically provides that materials which are the subject of a builders lien cannot be removed from property to the detriment of the lien holder. In some provinces this includes protecting those materials from being seized to enforce a debt unless the debt being satisfied is that of the supplier who supplied those materials. All in all, there are several legal protections in place to ensure that unpaid suppliers of materials are paid for the materials they have delivered and that those materials don’t find their way off the property until the supplier of those materials is paid.

PROTECTING LIEN RIGHTS While a lien over building materials arises the moment those materials are delivered to a project, it is important for a materials supplier to recognize that they must act quickly if they wish to preserve their lien. Generally speaking, a claim of lien must be registered within a prescribed number of days after completion or abandonment of the contract or subcontract at issue. Getting liens registered in time can be particularly precarious for materials suppliers who do not provide any services or labour to a project. For instance, in Alberta, a lien holder must register their lien within a set amount of time after their last day on the job site (so, for a materials supplier providing no services, the clock starts ticking the moment they deliver their last shipment of materials). Also in Alberta, materials liens may be extinguished once those materials are incorporated into the project. It is important for materials suppliers to know their rights when delivering supplies to a construction project. If you are a materials supplier and are unsure how or when to register a builders lien for materials or if you anticipate that you may be facing non-payment after supplying materials to a construction project, be sure to engage a lawyer experienced in construction law to ensure your rights are protected. This article is provided for general information only and may not be relied upon as legal advice.

REMOVING MATERIALS FROM A PROJECT After the materials have been delivered to a construction project, an unpaid materials supplier may be tempted to help themselves by taking back the materials. However, it will likely be difficult to do so as those materials will then be located on a construction site which does not belong to the supplier and the supplier will

Alexander is an Associate in the Vancouver office of Borden Ladner Gervais LLP (BLG), practicing in the area of construction litigation and arbitration.

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