JUNE 2020
CANADA’S TOP CONTRACTORS PLOT OUT THE FUTURE
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VOLUME 65, NO.4/ JUNE 2020
TOP CONTRACTORS 19 Top 40 Our list of the country’s largest builders
20
Holding their own Coming off strong 2019, contractors dig in through uncertain times
27
Top Five Under 50 A consistent approach: One firm's recipe for success
20
IN THIS ISSUE 5 Comment Expect the return to normal to take some time
8 News
The major developments
12 Construction stats The key figures
COLUMNS 42 Software Staying connected through extraordinary circumstances
44 Risk A cautionary tale about making all risk management decisions based on data
34
46
46 Contractors and the law COVID-19: When is relief available for impossibility of performance?
37 Index of Advertisers
FEATURES 34 The continued advance
38
Automation, augmented reality and the onward march of machine control
Momentum for modular construction keeps building, with the pandemic as an added catalyst
COVER PHOTO:Š BY BLACK_MTS / ADOBE STOCK
Off-site shift
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COMMENT
Expect the return to normal to take some time
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Construction across Canada is ramping back up, but the process will not happen overnight. Two metres of separation between workers, staggered shifts, an abundance of masks and thermometer guns at access points are just a few examples of the new reality on many job sites. For the thousands of projects in Ontario and Quebec that reopened in mid-May, as well as for the thousands of others across Canada where construction continued through the worst weeks of the pandemic, these markers of the COVID-19 era will be manifest for some time. In a recent discussion, Gerard McCabe, the managing director for Canada at consulting firm Turner & Townsend, said the return to work last month is just the first phase in a long and largely uncertain process. He is far from the only expert anticipating a protracted recovery. “Right now it’s step one: get the guys back to work, get the construction sites going, get the economy going and then we’ll see what happens after that,” he said. In the short term, McCabe is most concerned about the negative pressure physical distancing rules are likely to have on productivity, as well as how much damage the pandemic has caused to construction’s global supply chain. “On the one hand we’re dealing with the on-the-ground issues relating to manpower... at the same time, the supply chain is topsyturvy,” he said. With the virus numbers declining in Canada – albeit slowly – neither issue is likely to be ironed out quickly. The need to sort out the inevitable legal skirmishes point to yet another patch of rough road ahead. The focus up to this point has largely been worker health and ensuring construction can safely continue, but as contractors firm up their site protocols, financial issues are sure to return to the surface.
“I have no doubt there will be disputes,” McCabe said. “This is construction and you know it can get quite adversarial. It won’t be long before the disputes start to develop and people start taking their positions around the impact and who should bear it.” What party pays for demobilization and remobilization, timeline delays, enhanced on-site sanitation and the many other virus-related expenses not included in contracts, will be ubiquitous in the months ahead. McCabe anticipates the process will go contract by contract, though noted there could be some precedent set. “Ideally, each of the parties on either side of the contract will resolve this amicably and cooperatively, but I have no doubt in some cases they won’t be able to do this and this will go to court or through the dispute resolution mechanisms,” he said. With so much still up in the air, the exact course construction’s recovery is going to take remains somewhat unclear. Through the tough times, however, Canada’s biggest builders aren’t feeling discouraged. Business was good going into the crisis, and construction is likely to play a major role in digging the country’s economy out of it. I encourage you to take a closer look at the across-the-board response efforts from the industry, as well as the relatively optimistic outlook contractors are maintaining for 2020 in this year’s Top Contractors report (flip to pg. 15). As our Top 40 can attest to, the industry is resilient and it will recover, but COVID-19 will disrupt normal job site operating procedure and strain timelines for, at best, several more months.
David Kennedy / Editor dkennedy@on-sitemag.com
on-sitemag.com / 5
CONTRIBUTORS
MEET OUR CONTRIBUTORS FOR THIS ISSUE www.on-sitemag.com / Fax: 416-442-2230
NATE HENDLEY / Freelance Writer & Author On the continued advance of machine control for excavators: “Increasingly, manufacturers are producing excavators with factory-installed machine controls or adding cables and connections to make them machine control ‘ready.’ This momentum reflects the expanded role of excavators in construction.”
PUBLISHER | Peter Leonard (416) 510-6847 pLeonard@on-sitemag.com EDITOR | David Kennedy (416) 510-6821 dkennedy@on-sitemag.com MEDIA DESIGNER - Lisa Zambri lzambri@annexbusinessmedia.com ASSOCIATE PUBLISHER | David Skene (416) 510-6884 dskene@on-sitemag.com ACCOUNT COORDINATOR | Kim Rossiter (416) 510-6794 krossiter@on-sitemag.com AUDIENCE DEVELOPMENT MANAGER | Urszula Grzyb (416) 510-5180 ugrzyb@annexbusinessmedia.com
JACOB STOLLER / Principal, StollerStrategies On staying connected through extraordinary circumstances: “While the upheaval to the work environment has been stressful in many ways, it will likely lead to some long term improvements, such as a more consistent effort to keep lines of communication open amongst co-workers.”
VICE-PRESIDENT | Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbusinessmedia.com COO | Scott Jamieson sjamieson@annexbusinessmedia.com Established in 1957, On-Site is published by Annex Business Media 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 Publications Mail Agreement No. 40065710 ISSN: 1910-118X (Print) ISSN 2371-8544 (Online)
DAVID BOWCOTT / Global Director – Growth, Innovation & Insight, Global Construction and Infrastructure Group at Aon Risk Solutions On the dangers of over-relying on data for your risk management decisions: “You should always be skeptical of data sets and their inability to capture all known outcomes as it is this skepticism that will continue to drive future improvement in your data-driven decision making process.”
Circulation email: ugrzyb@annexbusinessmedia.com Tel: (416) 510-5180 Fax: (416) -510-6875 or (416) 442-2191 Mail: 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1 SUBSCRIPTION RATES Canada $49.50 per year, United States $113.00 per year, Other foreign $136.50, Single Copy Canada $13.50. On-Site is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Occasionally, On-Site will mail information on behalf of industry-related groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer privacy@annexbusinessmedia.com Tel: 800-668-2374 Content copyright ©2020 by Annex Publishing & Printing Inc may not be reprinted without permission.
LAURA DELEMERE / Borden Ladner Gervais LLP On COVID-19 and impossibility of performance: “The relief, if any, which is available to a party affected by COVID-19 will be largely driven by the particular facts at issue, including but not limited to the specific wording of the governing construction contract, the conduct of the parties to that contract, and the actual impacts of COVID-19, which continue to evolve.”
On-Site receives unsolicited materials (including letters to the editor, press releases, promotional items and images) from time to time. On-Site, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. DISCLAIMER This publication is for informational purposes only The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals.
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INDUSTRY NEWS
INDUSTRY>NEWS
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Ontario pulls plug on new Halton courthouse at tail end of procurement
Instead of revealing a winning bidder for a major new courthouse in Oakville, Ont., the province is cancelling the project. Attorney General Doug Downey announced the decision to pull the plug on the Halton Region Consolidated Courthouse May 8. For the move, he cited COVID-19 and a “broad consensus” about altering the way justice is meted out post-pandemic. “To keep people safe and uphold the administration of justice during the COVID-19 outbreak, the Ontario government and our justice partners established new and innovative ways of delivering justice remotely and online,” Downey said in a statement. “Experience gained during COVID-19 underscores the urgent need to invest in technology, modernize processes and expand access to justice across the province.” Construction teams bidding on the project had expected a contract to be awarded this spring after more than two years of procurement. With costs esti-
8 / JUNE 2020
mated at several hundred million dollars, the cancellation will be a blow to local builders. The Hamilton-Brantford Building and Construction Trades Council (HBBT) said it is disappointed with the decision. The courthouse is the second major infrastructure job cancelled in the area in the past six months – with the province also calling off the Hamilton light rail transit project in the eleventh hour last December. “If the region is losing almost $1.5 billion in direct public infrastructure investments, there is a real fear that the local economy will fall into further recession in the midst of the COVID-19 crisis,” said Mark Ellerker, business manager and financial secretary-treasurer for the HBBT. “It also means that the Ontario Government is sending a mixed message about restarting the local economy for workers and local businesses after the COVID-19 outbreak,” Ellerker said in a statement. Construction on the courthouse was expected to start this June after the prov-
ince settled on a winning bidder. Infrastructure Ontario had shortlisted the EllisDon Infrastructure Justice, Escarpment Justice Alliance and Plenary PCL Justice consortia for the design, build, finance, maintain contract last year. In place of the construction project, Downey said Ontario will shift the funding toward new technology designed to allow more court services to function online. “This innovative new approach will allow Ontario to take concrete action for the first time in recent memory to support a truly reimagined justice system,” he said. “It will move Ontario’s justice system forward by decades and allow it to emerge from this public health crisis more resilient and better positioned to face future challenges.” In place of the new facility, the province will be looking at addressing infrastructure needs at existing courthouses in Milton and Burlington, though it has not detailed what those renovation projects may entail.
Construction on Muskrat Fall to resume, but COVID-19 stoppage to add up to six months to timeline Construction on the Muskrat Falls hydro project will start ramping back up May 30, according to the crown corporation heading the project, but the pandemic-related halt to work will delay the dam’s completion by up to six months. Already years behind schedule and billions over budget — the current project estimate totals $12.7 billion — the dam has faced problems with costs and schedule from the outset. Crown-owned Nalcor Energy pulled hundreds of workers off the Labrador job site in mid-March in response to COVID19, leaving a skeleton crew in place to look after the facilities. With the worst of the pandemic seemingly in the rear-
view, the utility said May 26 it will begin ramping its workforce back up to finish the project. “Suspending work in March was a difficult decision but the right one for the protection of our workers and communities” Nalcor’s CEO, Stan Marshall, said in a release. “COVID-19 may be contained in this province for the time being but it is not conquered. Its full impact on the cost and schedule on the project is yet to be determined. I can only assure you that we will do everything we can to mitigate the impact without compromising people’s health and safety. We will keep you informed as we progress.” It won’t be business as usual.
Marshall warned productivity will take a hit as workers adhere to physical distancing and other new safety rules. Nalcor estimates it will take between and four and six months extra to complete the project under the preventative health guidelines, depending on how effectively crews are able to work. The move follows a similar announcement on the opposite side of the country, where BC Hydro has begun restarting construction on the Site C dam. Construction at Muskrat Falls will ramp back up over the coming months. Nalcor expects about 150 construction workers to be on-site by the end of June and as many as 300 through the summer.
Dexter, Nova consortium wins $718M contract for Nova Scotia highway twinning project
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The Nova Scotia government has firmed up a $717.9 million contract with East Coast contractors Dexter Construction and Nova Construction for a major highway twinning project. The road work along an accident-prone stretch of Highway 104 between Antigonish and Sutherland’s River is expected to
start in June and run until 2023. “This project will save lives,” said Lloyd Hines, the province’s Minister of Transportation and Infrastructure Renewal, in a release. “Nova Scotians were clear that they want safe roads now. This will mean a safer, affordable and more efficient highway being opened years earlier than a conventional highway project.” The Dexter Nova Alliance beat out a pair of other bidders for the project, which will divide the 38 kilometres of the existing highway and expand the road to four lanes from two along 10 of those kilometres. The work involves building two interchanges and about two dozen bridges. Along with the construction phase – expected to cost $364.3 million – the two contractors will be responsible for 20 years on operations and maintenance on the new stretch of highway northeast of Halifax. on-sitemag.com / 9
PHOTO: GOVERNMENT OF ALBERTA
INDUSTRY NEWS
PCL tops off Calgary Cancer Centre; $1.4B project remains on schedule in spite of COVID-19 Concrete crews in Calgary have all but completed their scope of work on a new cancer treatment facility following a final, 163-cubic-metre pour. Prasad Panda, the province’s minister of Infrastructure, marked the milestone April 28 as work on the Calgary Cancer Centre shifts to the next phase. “Achieving today’s construction milestone under the present circumstances is a remarkable achievement and is a testament to Alberta contractors and tradespeople,” he said in a release. “Despite the COVID-19 pandemic, approximately 1,000 workers are working on-site each day.” With additional health and safety measures in place to guard against coronavirus, the general contractor on the project, PCL Constructors Inc., has kept the approximately $1.4 billion project on time and on budget. As on other job sites across the country, site management has eliminated as many in-person meetings as possible, implemented six-foot social distancing rules and enhanced job site sanitation practices. The new hospital now stretches 13 storeys above grade, as well as five below. About 124,000 cubic metres of concrete make up the backbone of the structure. With the concrete work largely finished, the focus will shift to the building envelope, as well as the mechanical and electrical systems and early work on the building interior. Once complete, the Calgary Cancer Centre will have 160 inpatient beds, more than 100 exam rooms, research labs and space for clinical trials. Among other areas, the facility will also have a dozen radiation vaults that rely on thick layers of concrete to protect staff and patients from unwanted exposure. The hospital is one of several major health care building projects currently underway in the province. Work at the Misericordia Community Hospital in Edmonton is also progressing, with demolition underway. An expansion of the facility's emergency department is on track to start this summer. Construction on the Calgary Cancer Centre is scheduled to run until late 2022 and the new treatment facility will open to the public in 2023.
10 / JUNE 2020
B.C. issues RFQ for $116M hospital redevelopment project Partnerships BC has issued a request for qualifications for a hospital project in north-central British Columbia. The Stuart Lake Hospital Redevelopment Project includes the construction of a new hospital in Fort St. James, northwest of Prince George, as well as the demolition of an existing facility. Early design plans for new hospital show nine in-patient acute beds and 18 long-term care beds. Emergency care, medical imaging and laboratory space are also included. Along with the demolition and building construction, the winning build team will be responsible for a new parking lot and landscaping. The new health care site will serve the Fort St. James area, which includes several First Nations communities. The crown corporation said the project is expected to cost $116 million. The RFQ stage will run until mid-June, at which point the province will release a shortlist of bidders and issue an request for proposals.
ADVERTORIAL
Key infection control guidelines for your job site There’s still a risk of spreading the COVID-19 virus, so any business – including a construction site – that is open needs a plan for infection control based on government and industry best practices. That plan must be communicated to employees, contractors, and trades, and updated as necessary. Separate the site Stagger, split, or alternate shifts so there are fewer people in high-traffic areas. The Canadian Construction Association (CCA) recommends that job sites separate different crews using zones or other methods. Place limits on the number of workers in each zone and in common areas. Where work is done in crews, minimize or eliminate the crossover of workers between crews, with staggered breaks. Enforce good hygiene Regularly clean and disinfect frequently touched surfaces in common areas. This includes washrooms and eating areas, as well as shared tools, equipment, and vehicles (disinfect these between users and at the end of shifts). Consider removing frequently touched surfaces. Taps
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and paper towel dispensers can be changed out, garbage cans can be switched to hands-free models, and doors or door handles can be removed. Post signage reminding workers to wash their hands and provide easy access to soap and water or alcohol-based sanitizer. For work that must be done in close proximity, the CCA recommends formalizing procedures and requiring personal protective equipment (PPE). Non-medical face coverings are also recommended. Monitor workers At job site entrances, check that workers are not exhibiting flu-like symptoms, and that they haven’t been in contact with someone with a confirmed or probable case of COVID-19. Track and monitor movements of employees, while maintaining their privacy. If an employee does test positive for COVID-19, local health authorities will ask the employer about where they worked and who else may have been exposed. Infection control protocols on job sites will help keep workers—and their families—safe while continuing to flatten the curve.
To learn more about risk management practices that can assist during a pandemic, reach out to The Northbridge Risk Services team who can provide educational materials and consulting.
CONSTRUCTION STATS Workers Employed in Construction by Month
A selection of data reflecting trends in the Canadian construction industry
2019
January
1,444.9
February
1,438.3
March 1,435.9 April
1,465.1
May
1,456.5
June
1,449.1
CONSTRUCTION LABOUR MARKET WALLOPED IN APRIL, WITH JOB LOSSES TOPPING 300,000
July 1,474.1
After dodging pandemic-related job losses in March, the construction labour market felt the full brunt of COVID-19 in April. The industry shed 313,600 jobs on the month, according to the latest data from Statistics Canada. The huge decline in employment amounts to 21.1 per cent of the industry’s workforce. Many contractors in Quebec and Ontario were forced to halt work. Construction across the rest of the country was allowed continue through the pandemic, though enhanced health and safety protocols, such as physical distancing, reduced the number of staff on-site. While the extent of the job losses is considerable, most expect to return to work. Statistics Canada said 97 per cent of the lay-offs last month were temporary.
September 1,481.8 October 1,460.5 November 1,465.3 December 1,482.3 January 1,497.6
2020
1,489.7
February
March 1,487.5 1,173.9
April
In thousands of workers, seasonally adjusted SOURCE: STATISTICS CANADA
BUILDING PERMITS DIVE IN MARCH, MIRRORING COVID-19 RESPONSE
CRANE COUNT Toronto Los Angeles Calgary Seattle San Francisco Chicago Portland New York Denver Washington D.C.
August 1,472.0
121 47 37 36 33 29 28 26 25 25
The value building permits Canadian cities issued in March declined 13.2 per cent, or $7.4 billion as provinces shut down in response to COVID-19. According to the latest data from Statistics Canada, permits for single-family homes and multi-unit dwellings slipped 15.3 and 11.1 per cent, respectively. On the non-residential side, the value of permits declined in two of three categories. Commercial permits declined 19.7 per cent across the country, while institutional fell 15.7 per cent. Industrial permits, however, posted strong growth of 14.9 per cent, helped by several large projects in the Winnipeg area.
SOURCE: RIDER LEVETT BUCKNALL
TORONTO EASILY TOPS OTHER NORTH AMERICAN CITIES IN LATEST CRANE COUNT Toronto remains virtually unopposed in the low-stakes race for North America’s construction crane crown. The city boasts 121 of the steel towers in the latest iteration of Rider Levett Bucknall Ltd.’s Crane Index, carried out in the first quarter of 2020. Toronto’s tally – one higher than the 120 it logged six months ago – represents more than a quarter of the 455 cranes across all 14 North American cities included in count. With 47 cranes, Los Angeles follows Canada’s largest city as second on the list. Calgary (37), Seattle (36) and San Francisco (33) round out the top five. Still, uncertainty lurks on the horizon. As it has throughout other sectors of the economy, COVID-19 looks likely to derail, or at least slow growth in construction across the continent.
12 / JUNE 2020
Single family
- 15.3%
Industrial
Multi-unit residential
- 11.1%
+ 14.9%
Commercial
- 19.7%
Multi-unit residential
- 15.7%
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TOP FIVE UNDER 50
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CANADA’S TOP CONTRACTORS PLOT OUT THE FUTURE
Success is never earned easily – it’s built by overcoming challenges and adapting to change. Aon congratulates this year’s Top Contractors on their resilience and innovation. We’re here to help you navigate complex decisions and reshape the future. Using powerful data, we help businesses build even greater resilience. Our commitment to the industry is unwavering, and we will continue to be your advocate and partner. aon.ca
TOP CONTRACTORS
WELCOME LETTER
O
n behalf of Aon, I’m especially proud to sponsor the Top Contractors issue of On-Site this year. Most importantly, I hope that you, your loved-ones and your teams are staying safe and well. While there’s no doubt we will continue to work through challenging times, Canada’s construction industry is well positioned for a strong business recovery and an excellent future. What we do today, and in the coming months, is critical. Our team is here to help you through complex decisions, and to advocate on your behalf.
BEING READY FOR OPPORTUNITIES Economic downturn and volatility – they were a reality before the COVID-19 pandemic and will continue to be the biggest challenge we face. Despite this, we expect there will be enormous opportunity as a result of economy stimulating infrastructure spending. Careful planning will be the key to capitalizing on these opportunities. Labour shortages and supply chain risks must be factored into your project strategy. Increased merger and acquisition activity, and the risk of non-payment of receivables are two of the top risks during volatile times. Insightful risk management and risk transfer will allow contractors to improve liquidity and grow your business sustainably.
ADVOCATING FOR THE INDUSTRY Aon takes pride in our close partnership with industry associations like the Canadian Construction Association (CCA). We maintained our CCA Annual Conference sponsorship this year, and worked closely with the association, the federal government and Export Development Canada (EDC) to provide input on ensuring the construction sector maintains liquidity and has access to necessary bank and surety credit. In addition, we have been advising clients on assessing the impact of this event on their operations, best practices associated with job shutdown, and how to safely operate a construction site in a post-pandemic environment. We will continue to advocate for Canada’s construction industry in tangible and actionable ways above and beyond our core offerings.
LOOKING FORWARD The future is always uncertain, but with the right contractual terms, operational practices, data, technology and risk finance solutions, we can help you find opportunities for growth. I consider it an honour to partner with an industry that contributes significantly to the financial health of the Canadian economy and our Aon team looks forward to helping your industry remain resilient and innovative for the future. I extend hearty congratulations to this year’s Top Contractors and wish all within the industry our very best for the coming years. Thank you for the opportunity to work together, Doug Correa Executive VP and National Practice Leader, Aon
on-sitemag.com / 17
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Canada’s Top Contractors had few free moments to stop for a breather last year as strong growth kept up in nearly all areas of the country. The past six months have shown how quickly the wind can change, but there’s no mistaking 2019 for anything but a strong year for Canadian construction – with a healthy majority of firms among the Top 40 adding to their revenue. Infrastructure funds continued to leave federal coffers and, as has been the case in recent years, expansion in big urban centres fueled strong investment in new commercial and residential developments. Despite the current uncertainty, the industry remains confident in its ability to work through the pandemic and emerge from it stronger. New health measures are quickly becoming standard procedure on job sites, allowing crews to refocus on the tasks at hand. I want to thank all of the contractors who were able to take the time during the challenging past few weeks to participate in our annual survey. We could not put together this valuable research without your contributions and insight. Finally, a note on SNC-Lavalin Inc. For the past several years we’ve included the company in our Top 40, as it took on a range of construction and engineering work. Last summer, however, SNC-Lavalin announced plans to refocus entirely on engineering, cease bidding on new construction projects and run out its project backlog. Unsurprisingly, over the next several years, the company’s construction revenues will decline to zero. To remain focused on contractors, we’ve elected to remove SNC-Lavalin from the Top 40.
TOP CONTRACTORS
TOP 40 Rank
Company
2019 Revenue
1
PCL Construction
$8,400,000,000
2
EllisDon Corp.
$4,411,122,000
3
Aecon Group Inc.
$3,460,400,000
4
Ledcor Group of Companies
$2,600,000,000
5
Graham Group Ltd.
$2,377,400,000
6
Pomerleau Inc.
$2,343,000,000
7
Kiewit Canada Group Inc.
$1,983,264,000
8
Bird Construction Inc.
$1,376,408,000
9
EBC Inc.
$1,010,000,000
10
Flynn Group of Companies
$980,242,000
11
Stuart Olson Inc.
$929,152,000
12
North American Construction Group
$719,067,000
13
Turner Construction Co.
$610,471,895
14
Clark Builders
$584,642,170
15
Broccolini
$572,300,000
16
Axiom Builders Inc.
$550,000,000
17
Reliance Construction Group
$550,000,000
18
Chandos Construction
$540,000,000
19
Magil Construction
$530,000,000
DAVID KENNEDY EDITOR
20
Taggart Group of Companies
$450,000,000
21
Maple Reinders Constructors Ltd.
$449,300,000
TOP FIVE COMPANIES
22
FWS Group of Companies
$345,000,000
23
ConDrain Group
$330,000,000
24
Dawson Wallace Construction Ltd.
$300,000,000
25
Govan Brown & Associates Ltd.
$275,000,000
26
Barnard of Canada Inc.
$245,131,853
27
Buttcon Ltd.
$210,000,000
28
Leeswood Construction
$210,000,000
29
Delnor Construction Ltd.
$205,900,000
30
Keller Foundations Ltd
$200,000,000
31
Avondale Construction Ltd.
$196,000,000
32
Wales McLelland Construction
$180,000,000
33
Marco Group of Companies
$166,000,000
34
Acadian Construction
$157,000,000
35
M Builds Construction
$152,000,000
36
Bockstael Construction Ltd.
$136,100,000
37
Fortis Construction Group Inc.
$130,000,000
38
Newway Group
$125,000,000
39
Fillmore Construction
$115,000,000
40
Priestly Demolition Inc.
$109,500,000
UNDER 50 EMPLOYEES Rank Company
1
2
3
Rosati Construction Inc.
JR Certus Construction Co.
CGI Constructors
Revenue
$57,256,222
$45,100,000
$40,853,365
4
O.N.Site Construction Inc.
$37,745,000
5
Clobracon Construction Inc.
$30,000,000
Based on written responses to research conducted by On-Site, as well as on publicly available data. Some contractors chose not to participate in this research.
on-sitemag.com / 19
HOLDING THEIR OWN Coming off strong 2019, contractors dig in and innovate through uncertain times
F
rom the first of the big iron arriving at the site of a new hospital in Corner Brook, N.L., to continued progress on the elaborate series of earthworks and diversion tunnels at the Site C dam outside Fort St. John, B.C., 2019 was a busy year for Canadian contractors. To complement the coast to coast infrastructure work, the strong economy kept demand up in both the residential and ICI (industrial, commercial and institutional) sectors across much of the country. In December, with cities continuing to quickly expand upward and a number of long-delayed resource projects
20 / JUNE 2020
moving ahead, nearly all signs pointed to 2020 as being another year of healthy growth in construction. Six months later, it goes almost without saying that COVID-19 has turned all previous forecasts obsolete. None of Canada’s contractors could have predicted the pandemic that has set the global economy adrift, but in spite of the daunting headwinds, a strong majority of builders are confident they’re well positioned to weather the crisis. Of the more than 100 contractors polled by On-Site – a figure that includes the largest builders in the country – approximately two-thirds say
they are adequately prepared to deal with the fallout from the pandemic. Another 15 per cent go a step further, saying they are well prepared. A minority of contractors are less confident, with about 17 per cent of firms feeling they’re on shaky ground as the shockwave from the virus permeates the Canadian economy. There’s reason for the overarching optimism. The construction industry entered the pandemic in a strong position. A decade of economic growth has kept backlogs at high or even record levels for many of the top firms, and early signs of infrastructure stimulus from provincial
TOP CONTRACTORS
Crews at the Site C project in northeast B.C. used a pair of custom-built slip forms to build the lining for the dam’s diversion tunnels. PHOTO: PEACE RIVER HYDRO PARTNERS
governments have helped bolster long-term confidence. With significant uncertainty still lurking ahead, contractors have tempered their expectations for 2020, but most anticipate working through the crisis and many still anticipate growing their business in the coming months.
TOO EARLY TO TELL At this stage, the fallout from the pandemic remains difficult to predict. Like other industries, construction will come under pressure, but the impact depends on a long list of factors. “This is not a recession that was
brought on by market conditions, this was a recession brought on by a public health crisis,” says Bill Ferreira, executive director of research organization BuildForce. “There’s a lot of speculation about how quickly we might see a bounce back… but I don’t think anyone has any sort of definitive answers.” Ferreira anticipates fresh market data will give BuildForce and other forecasters a clearer picture of how the construction industry and wider economy is handling the challenges in the months ahead. The extent of the damage to the wider economy, the effect of physical distancing rules
on job site productivity and the scope of possible government stimulus are a few of the key areas to watch. For now, worker safety remains the top priority for most contractors. The overwhelming majority of firms have enacted physical distancing rules, briefed staff on prevention and implemented enhanced cleaning schedules, according to On-Site polling. More than two-thirds have asked non-essential workers to work from home to limit the number of staff on-site and 58 per cent have staggered work shifts. Temporary job site closures, both voluntary and mandatory, have been less prevalent, but have proven to be a significant part of response plans. Approximately 55 per cent of the contractors polled say they have temporarily shut at least one job site as a result of the pandemic. As of May 19, however, when Ontario allowed the remaining segments of its construction industry to reopen, all government-mandated job site closures have been lifted across the country. Work in Ontario remained partially open throughout the crisis, while Quebec forced contractors to halt most construction from April 24 to May 11. All other provinces and territories exempted construction from such blanket restrictions, though most ordered contractors to enact a range of health measures. With the pandemic entering its third month, these preventive steps have become standard operating procedure on job sites and contractors are turning their focus from response to recovery.
A FRESH START For construction, the pandemic has been a shock to the system. But some of the forced changes are certain to prove beneficial over the long term. In many cases, the crisis has given contractors a reason to look at adopting new technology, or speed up a migration to a new piece of software
on-sitemag.com / 21
© INK DROP / ADOBE STOCK
TOP CONTRACTORS
that was already underway. Cloud-based systems are just one example. There has been a growing trend toward connected devices and shared information ever since tablets first arrived on job sites, but overnight, COVID-19 has made paperbased systems obsolete. The cloud – be it a wide-reaching construction management software, or specialized app for a certain segment of the job – has allowed teams to go virtual with some job site staples, such as a morning safety meeting or the white board in the project trailer.
At the same time the real-time aspect of cloud software lets non-essential staff that have been temporarily moved off-site stay up to date and remain productive at home. Long term, contractors may be able to slim down their on-site workforces in favour of a larger roster of remote staff. Brad Barth, chief product officer at InEight Inc., expects there’s no going back. “Even though that this pandemic has maybe forced peoples’ hand to move to a cloud solution, I think the benefits for which is was originally designed – that
MAKING ADJUSTMENTS Like the rest of the country, the fast-moving COVID-19 crisis took contractors by surprise. But just because most builders weren’t anticipating the pandemic doesn’t mean the construction industry wasn’t ready
© CHEKMAN / ADOBE STOCK
Nearly 7 in 10 contractors say were they adequately prepared to deal with the pandemic
More than half of Canada’s contractors implemented each of these measures on job sites: Temporary job site shutdowns Enacted social distancing rules Moved non-essential staff off-site Staggered schedules Enhanced cleaning/sanitation efforts Briefed staff on prevention best practices
22 / JUNE 2020
ease of collaboration, the central repository of the data that everybody can look at, the real-time access to the information – those are the things that will keep people using it even when things lighten up from a quarantine perspective,” he says. Barth anticipates the construction industry’s abrupt technology adjustment will also help builders chip away at the industry’s well-known productivity deficit when compared to other industries. At Quebec-based Canam Group, Elio Perrazzino, the project management manager for Eastern Canada for the company’s buildings division, said collaboration over the cloud has become essential through the pandemic. Canam is currently building and installing the structural steel shell for a number of new, ecommerce-focused warehouses for Canada’s big grocery chains. In response to blistering demand for online orders, timelines are being accelerated where possible, and Canam is working to keep up. Perrazzino’s team uses several components of Autodesk Construction Cloud, including PlanGrid and BIM 360, as well as Revit – a building information modeling tool – and has found it’s actually been able to turn work around more quickly in the cloud. “Just this week, I’ve had three clash detection meetings and usually they would last the whole day,” Perrazzino says. “You would get together around a big table… and now it’s done online and it’s done in half an hour.” The potential efficiencies uncovered by the sudden shift are certain to find their way into the company’s post-pandemic operations. “Putting things in perspective, it’s going to change a lot of things,” Perrazzino says, noting that he and his team have conventionally spent a lot of time on-site. Going forward, he anticipates his daily drive to the job site becoming something he only needs to do once a week, or once every two weeks.
Welcome to the future of integrated construction technology.
Learn more at: autodesk.com/construction +1 866-475-3802
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© INEIEZHMAKOV / ADOBE STOCK
KICK-STARTING THE ECONOMY
24 / JUNE 2020
The virus has caused profound disruption throughout construction, but new opportunities will inevitably take root. Infrastructure is one area already showing promise. Governments in Alberta, Saskatchewan, Manitoba, Quebec and Nova Scotia have topped up existing spending plans and stimulus from other provinces seems likely to follow as virus restrictions loosen up coast to coast. At the federal level, Ottawa has opened up a COVID-19 stream for its 12-year Investing in Canada plan. The move could see up to $3.3 billion spent on infrastructure work tied to the pandemic response, such as health care retrofits or projects like bike paths that promote social distancing. While the several billion in funding was already on federal books, the initiative will let provinces or territories cost-share a wider range of projects with the feds.
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TOP FIVE UNDER 50 EMPLOYEES A CONSISTENT APPROACH M 1 ROSATI GROUP Headquarters: Windsor, Ont. 2019 Revenue: $57,256,222 Sectors: Industrial, commercial, institutional, residential
2
JR CERTUS CONSTRUCTION CO. Headquarters: Vaughan, Ont. 2019 Revenue: 45,100,000 Sectors: Industrial, commercial, institutional, residential
3
CGI CONSTRUCTORS Headquarters: Mississauga, Ont. 2019 Revenue: 40,853,365 Sectors: Commercial, institutional
4
O.N.SITE CONSTRUCTION INC. Headquarters: Oakville, Ont. 2019 Revenue: $37,745,000 Sectors: Commercial, institutional
5
CLOBRACON CONSTRUCTION INC. Headquarters: Saint-Laurent, Que. 2019 Revenue: $30,000,000 Sectors: Industrial, commercial, institutional, residential
aintaining a healthy project backlog and consistently winning new work is a challenge for all contractors. But having planted its flag at the top of our Top Five Under 50 category for three of the last four years, it’s an attribute the Rosati Group has mastered. Tony Rosati, co-owner of the Windsor, Ont.-based contractor credits both the company’s strategy and its dedicated staff. “First and foremost, we have a strong team at Rosati that buys into and believes in our system,” Roasti says. “Our team also has great depth. From our in-house design department, in-house legal and real estate, to the estimating department and construction team, we all believe in the strategy.” The strategy itself isn’t novel – with hitting deadlines, sticking to budget and delivering consistent quality as a few key features. It’s the company’s ability to follow through on it project after project that ensures it stays successful.
Cross-training staff to take on tasks in a range of different departments is one method the company employs. For instance, it asks project managers to assist on large tenders, or on projects they will serve as the PM on. This step gives the team a clear understanding of the costs expected on the job and helps create efficiencies during construction, Rosati says. The company’s niche centres on industrial and commercial work and 2019 was no exception. Among other projects, Rosati built a 205,000 sq. ft. manufacturing facility in Windsor, delivering it in only nine months. It also took on a retrofit project to clear the way for a new boutique market. Mercato Fresh in nearby Chatham, Ont. covers 14,000 sq. ft. Currently, like other contractors across Canada, Rosati is stepping up to tackle the COVID-19 crisis. “We are managing our way through it at partial capacity due to the mandatory closing regulations,” Rosati says, noting that it’s working closely with clients to adjust site plans as necessary. With work getting back on track in Ontario after about six weeks of large-scale shutdowns, the company has developed a set of safety protocols to keep its crews safe on job sites. Among other steps, the process includes stringent sign-in and sanitization procedures. It’s also outfitted each site with a range of PPE when working at close-quarters is required. Keeping close tabs on how the economy recovers, Rosati says the company will be ready to pivot and expand its bidding into segments of the building market it typically doesn't play in as necessary. PHOTOS: ROSATI GROUP
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TOP CONTRACTORS
ACTIVITIES
LISTINGS
The following letter codes are used to indicate areas of activity for the contractors in the listings on these pages.
A
B
A. Mazzucco Construction 369 Bering Ave. Etobicoke, ON M8Z 3B1 T: 416-207-0388 www.amazzucco.on.ca E, G, M, U
Barnard of Canada Inc. 2200 - 1055 Hastings Street Vancouver, BC V6E 2E9 T: 406-586-1995 www.barnard-inc.com A, E, H, J, K, M, Q, R, S, T, W, X, Z
AAA Striping & Seal Coating Service 9519-42 Avenue NW Edmonton, AB T6E 5R2 www.aaastriping.ca W
Bel-con Design-Builders Ltd. 1-335 University Avenue Belleville, ON K8N 5T7 T: 613-968-6707 www.bel-con.com C, F, G, H, M, N, O, Y
Acadian Construction 671 Malenfant Blvd. Dieppe, NB E1A 5T8 T: 506-857-1909 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
Benson Steel Ltd. 72 Commercial Road Caledon, ON L7E 1K4 T: 905-857-0684 www.bensonsteel.com B, C, H, N, O, Y
Aecon Group Inc. 20 Carlson Court Toronto, ON M9W 7K6 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
Bird Construction 5700 Explorer Drive Mississauga, ON L4W 0C6 T: 905-602-4122 www.bird.ca A, C, E, F, H, M, N, O, R, S, T, V, X, Y, Z
Alpha Construction Inc. 4 Heritage Drive Sturgeon County, AB T8T 0N2 T: 780-476-3098 https://alphaconstruction.ca/ C, M, U
BJ Concrete & Bobcat 1366 Brentwood Court Kelowna, BC V1Z 3C2 T: 2507694147 E
Avondale Construction Ltd. 49 Hobson Lake Drive Halifax, NS B3S 0E4 T: 902-876-1821 www.avondaleconstruction.com B, C, D, 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
Bockstael Construction Ltd. 200-100 Paquin Road Winnipeg, MB R2J 3V4 T: 204-997-4730 www.bockstael.com C, F, H, J, M, N, O, V, Y Broadway Hardwood Flooring Ltd 29-401 Magnetic Drive Toronto, ON M3J 3H9 T: 416-730-1830 www.broadwayfloors.ca U, V Broccolini 16766 Trans-Canada Highway Kirkland, QC H9H 4V3 T: 514-737-0076 www.broccolini.com C, N, V
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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
Bulwark Protective Coatings 105 Black Road Sault Ste. Marie, ON P6B 0A3 T: 705-206-6255 bulwarkpc.wixsite.com/bulwark B, J, N, O, R, S, Z Buttcon Ltd. 401-8000 Jane Street, Tower B Concord, ON L4K 5B8 T: 905-907-4242 www.buttcon.com A, C, E, F, H, M, N, O, V, Y
C Caliber Projects Ltd. 202−6375 202 Street, Langley, BC V2Y 1N1 T: 604-427-1403 www.caliberprojects.com C, E, M, V, Y CanWest Concrete Cutting & Coring 5025-13 Street SE Calgary, AB T2G 5N1 T: 403-225-4445 www.canwestconcrete.com A, B, C, D, E, G, J, M, N, U, U, V, W Caruana Interiors and Contracting 9-8 Riel Drive St. Albert, AB T8N 3Z7 T: 780-935-5831 www.caruanainteriors.ca V
CGI Constructors 895 Meyerside Drive Mississauga, ON L5T 1R8 T: 905-564-6565 www.cgigc.com C, H, M, N, O 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 CIBS Group 12075 Arthur Sicard Road Mirabel, QC J7J 0E9 T: 450-433-7575 legroupecibs.com C, H, M, N, O, V Clark Builders 4703 52 Avenue Edmonton AB T6B 3R6 T: 780.395.3311 www.clarkbuilders.com C, E, F, H, J, M, N, O, T, V Clobracon Construction Inc. 2535 – 1 Halpern Road Saint-Laurent. QC H4S 1N9 T: 514-731-0035 www.clobracon.com C, E, G, M, O, V, Y Concord Earthmoving Ltd. 171 Denrich Avenue Tillsonburg, ON N4G 0H3 T: 905-808-8325 www.concordearthmoving.com A, C, H, J, K, U, W ConDrain Group, The 30 Floral Parkway Concord, ON L4K 4R1 T: 905-669-5400 www.condrain.com A, B, C, M, N, O, W, X, Z Cornerstone Homes 22 Whispering Springs Way Artesia, AB T1S 4K4 T: 403-279-9190 https://cornerstonehomes.biz/ H, M, U, V
D
F
Dawson Wallace Construction Ltd. 4611 Eleniak Rd. Edmonton, AB T6B 2N1 T: 780-466-8700 www.dawsonwallace.com C, H, F, M, N
Fillmore Construction 9114 - 34A Avenue Edmonton, AB T6W 2M5 T: 780-235-6014 www.fillmoreconstruction.com C, H, M, N, O, V
Delnor Construction Ltd. 3609-74 Ave. Edmonton, AB T6B 2T7 T: 780-469-1304 www.delnor.ca C, H, M, N, O, U
Flynn Group of Companies 6435 Northwest Drive Mississauga, ON L4V 1K2 T: 905-671-3971 www.flynncompanies.com C, J, N, O, S
DSBG Ltd. 62-70 Great Gulf Drive Vaughan, ON L4K 0K7 T: 416-367-3724 www.DSBG.ca F, H, M, U
Fortis Construction Group Inc. 3070 Jefferson Blvd. Windsor, ON N8T 3G9 T: 519-419-7828 www.fortisgroup.ca C, H, M, N, O, V
E Earth Max Construction Inc. 9154 E Road 73N Stony Mountain, MB R0C 3A0 T: 204-344-5760 www.earthmax.ca F, M, W, X, Z EBC Inc. 1095 Valets Street L’Ancienne-Lorette, QC G2E 3M3 T: 418-872-0600 www.ebcinc.com B, C, F, H, J, M, N, O, Q, R, T, V, W, Z 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 Evolve Builders Group Inc. 103-123 Woolwich Street Guelph, ON N1H 3V1 T: 519-265-6546 www.evolvebuilders.ca F, H, M, U
Four Seasons Site Development Ltd. 42 – 1 Wentworth Court Brampton, ON L6T 5K6 T: 905-789-0111 www.sitedevelopment.ca E, W, X, Y, Z FWS Group of Companies 275 Commerce Drive Winnipeg, MB R3J 3N7 T: 204-487-2500 www.fwsgroup.com A, C, E, F, H, M, N, O, R, S, V, Y
G Gillam Group 36 Northline Road Toronto, ON M4B 3E2 T: 416-486-6776 C, D, E, F, G, H, J, K, M, N, O, V, Y, Z Glover-Hill Inc. 206 Stanley Street North Thamesford, ON N0M 2M0 T: 519-285-3932 www.glover-hill.ca M, Z
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TOP CONTRACTORS
LISTINGS
Govan Brown & Associates Ltd. 108 Vine Avenue Toronto, ON M6P 1V7 T: 416-703-5100 www.govanbrown.com C, H, M, N
Kiewit Canada Group Inc. 200-10333 Southport Rd. Calgary, AB T2W 3X6 T: 403-693-8701 www.kiewit.ca A, B, D, E, H, J, K, M, N, Q, R, S, T, W, X, Y, Z
Graham Group Ltd. 10840 27 Street SE Calgary, AB T2Z 3R6 T: 403-570-5231 www.grahambuilds.com B, C, D, F, G, H, J, K, M, N, O, Q, R, S, T, V, W, X, Z
Kindred Construction Ltd. 308 – 2150 West Broadway Vancouver, BC V6K 4L9 T: 778-888-0101 www.kindredconstruction.com C, E, H, M, N, O, U, V
Green’s Haulage 835 Brunel Road Huntsville, ON P1H 1S3 T: 705-789-0005 www.greenshaulage.ca A, B, C, E, G, H, J, K, N, O, R, T, U, V, W, X, Z Gypsum Drywall Interiors Ltd. 17 South Landing Drive Oak Bluff, MB R4G 0C4 T: 204-661-8899 gdi.ca C, H, N U, V
H HK Contracting 145 Traders Blvd Mississauga, ON L4Z 3l3 T: 647-292-4622 www.hkcontracting.ca C, H, M
L Ledcor Group of Companies 1200-1067 West Cordova Street Vancouver, BC V6C 1C7 T: 604-681-7500 www.ledcor.com C, D, K, M, N, O, R, S
JR Certus Construction Co. Ltd. 3-81 Zenway Blvd. Vaughan, ON L4H 0S5 T: 647-494-0150 www.jrcertus.com C, F, M, N, O, V
K Keller Foundations 254 Main Street Unit 1 Acton, ON L7J 1W9 T: 519-853-3216 www.kellerfoundations.ca B, C, D, J, K, N, O, R, S, T, V, W, X, Z
Newway Group 3750 First Ave. Burnaby, BC V5C 3V9 T: 604-299-3709 www.newwayforming.com C, E, F, O, V, X 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
O
M & D Builders 128-5910 Greensboro Drive Mississauga, ON L5M 5Z6 T: 416-822-2249 www.mdbuilders.ca C, F, G, H, M, U
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
M Builds 955 Cobalt Court Thunder Bay, ON P7K 1B9 T: 807-346-1650 www.manshield.com C, M, N, O, V
Okanagan Insulation Services 530 Beaver Lake Road Kelowna, BC V4V 1S5 T: 250-491-5818 www.okinsulation.ca C, N, U, V
Magil Construction 1655 Rue de Beauharnois Ouest Montreal, QC H4N 1J6 T: 226-376-2892 www.magil.com C, H, J, M, N, O, V
Ontario Cutting & Coring Ltd. 1-2398 Haines Road Mississauga, ON L4Y 1Y6 T: 905-279-2660 www.ontariocuttingandcoring.com G, T
Maple Reinders Constructors Ltd. 2660 Argentia Road Mississauga, ON L5N 5V4 T: 905-821-4844 www.maple.ca C, F, H, O, V, Z
30 / JUNE 2020
N
North Construction 378 Esplanade East North Vancouver, BC V7L 1A4 T: 604-904-2300 www.north-construction.com B, E, F, G, H, J, K, M, Q, U, V, W, X, Z
Leeswood Construction 7200 West Credit Ave. Toronto, ON L5N 5N1 T: 416-309-4482 www.leeswood.ca C, H, M, N, V
M
J
Marco Group of Companies 78 O’Leary Avenue St. John’s, NL A1B 4B8 T: 709-754-3737 www.marcogroup.ca C, F, H, M, N, O
TOP CONTRACTORS
LISTINGS
P PCL Construction 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 Pedersen Construction 177246 Bedard Road New Liskeard, ON P0J 1P0 T: 705-648-3904 www.pedersenconstruction.ca A, C, E, K, M, N, O, R, U, V, W, X, Z Pomerleau Inc. 521 6e Avenue Saint-Georges, QC G5Y 0H1 T: 418-228-6688 www.pomerleau.ca A, B, C, E, F, G, H, J, M, N, O, Q, S, T, V, W, X, Y, Z Plainsman Construction Ltd. 210 - 989 McGill Place Kamloops, BC V2C 6N9 T: 250-372-1544 www.plainsman.ca C, F, H, M, V Priestly Demolition 3200 Lloydtown Aurora Rd. King, ON L7B 0G3 T: 905-841-3735 www.priestly.ca B, C, G, K, N, R
R RDM Enterprises Group 207 – 20436 Fraser Highway Langley, BC V3A 4G2 T: 604-657-4523 www.rdmenterprises.com A, B, C, G, J, M, N, W, X, Z 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
32 / JUNE 2020
Rosati Group 6555 Malden Rd. Windsor, ON N9H 1T5 T: 519-734-6511 www.rosatigroup.com C, F, H, M, N, O, V
Teel’s Excavating Walbridge Court Bowmanville, ON L1C 4B6 T: 905-419-3116 teelsexcavating.ca M
RPC Group Inc. 510 – 736 8th Ave SW Calgary, AB T2P 1H4 T: 403-930-8141 www.rpcgroup.ca C, H, M, O,
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
S S. W. Atchison Plumbing & Heading Ltd. 4186 Raney Crescent London, ON N6L 1C3 T: 519-652-2968 www.atchisonplumbing.com C, H, N, U, V Self Storage Contracting Inc. 200 Brock Street Barrie, ON L4N 2M4 T: 905-526-0202 www.selfstoragecontracting.com H, N Snyder Construction 920 Brawley Rd W Ashburn, ON L0B 1A0 T: 905-655-5000 www.snyderconstruction.ca C, F, G, H, M, N, O, U, V, Stan Bates Construction 605 Mcenzie Ave. Atikokan, ON P0T 1C0 T: 807-597-4574 M
V VVI Construction 96 Cartier Street Revelstoke, BC V0E 2S0 T: 250-837-2919 www.vviconstruction.com C, E, F, G, H, K, M, N, O, T, U, V, W, X, Y, Z
W Wales McLelland Construction 6211 Fraserwood Place Richmond, BC V6W 1J2 T: 604-638-1212 www.walesmclelland.com A, C, F, G, H, M, N, O, Y Whittaker Equipment Ltd. 39655 Government Road, Squamish, BC T: 604-836-3843 B, J, K, W
X
Stuart Olson Inc. 600-4820 Richard Road SW Calgary, AB T3E 6L1 T: 403-520-1594 www.stuartolson.com F, J, M, N, R, S
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
XL Parking Lot Maintenance Inc. 113 6th Concession Road East Millgrove, ON L8B 1L9 T: 905-689-2999 www.xlparking.ca W
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MACHINE CONTROL
The
Continued Advance Automation, augmented reality and the onward march of machine control BY NATE HENDLEY
E
xcavators equipped with machine control are becoming more common at construction sites as contractors look to enhance productivity, safety and efficiency. Machine control systems utilize data from satellites and input from sensors to check grade and provide geographic coordinates. Machine control solutions can also automate functions and collect and transit data over online networks. There are two major trends in the sector: more automation and a growing enthusiasm on the part of OEMs for machine control technology. Increasingly, manufacturers are producing excavators with factory-installed machine controls or adding cables and connections to make them machine control “ready.” This momentum reflects the expanded role of excavators in construction. “We’ve noticed an increase in the number of machine control solutions used on excavators,” says Chris Mazur, product manager for Heavy Construction at Lecia Geosystems – a unit of Hexagon. “The dozer remains the number one way to move
34 / JUNE 2020
dirt. [However], the excavator is becoming more important for the contractor on the job site. It’s not just as a tool to dig and haul dirt around. It is used as a production tool.” Cameron Clark, business area manager for Civil Engineering and Construction at Trimble, has also noted the growing interest in excavators. “I’ve been on the machine control side for nearly 20 years, so I’ve been able to watch the trends. The growth in excavators has been very strong,” he says. “Technology can make these machines way more versatile and able to perform tasks you would previously need another machine for. For example, with automatics, you can now cut a slope and it’s at finished level, it’s smooth. You don’t need a dozer to come in and clean up after you.” “We are selling more excavator systems than bulldozer [systems],” he adds. Fred Beachner, senior manager of Product Management at Topcon Positioning Systems, also says there has been a “large uptick” in the number of excavator customers demanding machine control systems in
recent years. A partnership announced this March will see Hitachi Construction Machinery making excavators with factory-installed Topcon X53-x automated machine control. These latest integrated machines will initially be rolled out in North America. Topcon has also forged relationships with other major manufacturers on excavator machine control solutions. It is not the only one. Construction machinery manufacturer Liebherr will soon be equipping its wheeled and crawler excavators with Leica’s iXE2 2D and iXE3 3D machine control systems, for instance. The partnership was also announced in March at Conexpo 2020. “While some excavator manufacturers are going to that full step, where customers can order the excavator with a full-blown machine control solution on it, others are taking an intermediate step, where they are providing wiring and mounting provisions on the machines to make it easier to put machine controls on,” Mazur says. In similar fashion, Trimble works with OEMs to develop options for making exca-
PHOTO: LEICA
Leica vators Trimble-ready. “You get the hardware and cables and other things on the excavator installed at the factory,” Clark says. “Once the machine hits the field, the electronic components can be easily and quickly installed… We offer Trimble-ready solutions with OEMs such John Deere, Doosan, JCB.” Within Canadian construction circles, excavator machine control is primarily used for heavy infrastructure purposes. Highway construction firms are Trimble’s largest users of machine control in Canada, Clark says. Excavator machine control is also utilized for roadway fine grading, digging trenches for utilities and drainage systems, basement digging, marine rehab and removing contaminated soil, he adds. As for the future, “autonomous machines are on everyone’s radar,” Clark says. For now though, excavator machine control providers are mainly focused on adding automatic and semi-automatic options to their solutions. Here’s a look at what’s new and/or noteworthy in excavator machine control:
Lecia’s MSS400 Series Sensors with SP Technology are now available for excavators. The company introduced its SP, or speed and performance, option on its dozer solutions in 2012 and is expanding the offering to excavators. “We use the sensors to calculate the position of the bucket,” Mazur says. “SP sensors provide better performance for excavators by allowing operators to dig faster and move the machine faster.” Leica has also developed has a wireless Tool Recognition system for excavators that will soon be available in North America. The system is designed for excavator operators who use multiple buckets in a single shift. “A lot of times during the day, the operator is changing the bucket. Normally, you need to load a profile for the new bucket because your dimensions and calibration settings have changed,” Mazur says. “With Tool Recognition, all that happens automatically. An operator detaches a bucket and selects a new one. The system recognizes which new bucket is being put on. All the dimensions, configurations and calibrations for the new bucket automatically get applied.” By removing the possibility of using the wrong bucket, the solution eliminates the risk of human error. Leica’s iXE CoPilot system, meanwhile, automates the rotation and tilt function of tilt rotator attachments, simplifying things for the operator. “When the operator is using the CoPilot system, they only need to concentrate on controlling the digging movement… We take responsibility for the rotation and the tilt out of the equation, so the operator can continue to work on digging,” Mazur says. In March, Lecia introduced a semi-automated feature on its iXE3 3D excavator machine control solution which gives operators the ability to engage automatic tilt, bucket, boom, and rotation control. “The same benefits we see with CoPilot, we will now see with the semi-automatic excavator. It will decrease operator fatigue and make the machine more productive with less fuel consumption,” Mazur notes. on-sitemag.com / 35
MACHINE CONTROL
Earlier this year, Topcon introduced new features on its flagship X-53x automated machine control system for excavators. The new and improved system now offers tilt rotator functionality, making it easier for operators to tilt or swivel the bucket using automatic boom control. Topcon also has a new bring your own device (BYOD) solution called Pocket MC, based around software “that will be available via the Google Play store,” Beachner says. Designed to be used on a smart phone or tablet – hence the brand name – Pocket MC can locate identified utilities at a site, check grade and verify cut, among other features.
PHOTO: TOPCON
Topcon
Trimble released its Earthworks Grade Control Platform version 2.0 earlier this year. The update contains several new features that are applicable to excavators, including Augmented Reality (AR). The AR feature works as follows: a camera mounted to the exterior of an excavator fitted with special hardware relays ground surface images. These images are superimposed with 3D digital models and displayed on a screen inside the excavator. The AR system lets operators visualize the design in relation to the site, giving them a better understanding of the job at hand, while the camera view improves operator visibility, enhancing safety, Clark notes. The new version of the company’s Earthworks platform incorporates the LOADRITE Payload Management system, which was previously a separate application. Excavator operators can now view payload and grade control data at the same time on the same display screen, Clark says. When excavator operators using Trimble machine control put their machine into automatic mode, the operator maintains control of the stick, while Earthworks controls the bucket and boom, ensuring grade consistency.
36 / JUNE 2020
PHOTO: TRIMBLE
Trimble
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2020-03-19 11:55 AM
MODULAR CONSTRUCTION
OFF-SITE SHIFT Momentum for modular construction keeps building, pandemic an added catalyst
PHOTO: HORIZON NORTH
BY DAVID KENNEDY
38 / JUNE 2020
shifted some of its focus from temporary workforce accommodations to permanent buildings. “We changed out the nature of our quality, our cost structure, our software, architectural designs, the quality of the sales strategy we had, the balance sheets – and effectively converted what I’d characterize as a trailer manufacturing plant into a de facto auto plant,” says Rod Graham, Horizon North’s president and CEO. Bringing experts from major carmakers aboard to optimize floor space and fine-tune quality, the company established the foundation for its modular construction business. Despite its track record with trailers and lodges, the transition wasn’t easy. “Just because you can build a camp or an office trailer, doesn’t mean that you can actually build some space that’s got a commercial application,” Graham says. “If you think about camps, effectively all the time is spent on the inside of the envelope. So, really, it was about having folks feel really good about the bedroom they were in, or feel really good about the kitchen they were getting food from, but really no thought to the exterior aesthetics of what the building looks like.” That interior-only dynamic has changed
dramatically as the company has pushed into the nascent markets for multi-unit modular builds. Today, Horizon North operates plants in Kamloops, B.C., Calgary and Grimsby, Ont., and is seeing increased demand for student, senior and affordable housing. The Calgary-based company’s journey from work camps to modular isn’t exactly typical for the building industry, but it reflects the widespread momentum for off-site construction. Many traditional on-site contractors are also embracing the controlled environments and lucrative timeline savings offered by modular plants. According to research conducted by On-Site last month, more than half of the largest builders in the country are either considering or already moving into off-site construction. Just over 13 per cent of the more than 100 large Canadian contractors surveyed aim to move as much work off-site as possible in the coming years. One-fifth are shifting to modular, but only for certain aspects of projects, and another 20 per cent are considering it, but awaiting for analysis into the pros and cons. About 40 per cent, on the other hand, see modular as unrealistic for their scope of work.
Left: Horizon North has enhanced its modular manufacturing capabilities over the past five years, optimizing its processes to better suit permanent buildings. Below: The A-Linx system is designed to provide a building’s entire superstructure, simplifying the building process.
PHOTO: A-LINX
A
t the peak of the Alberta’s oil boom in the early 2010s, Horizon North Logistics Inc. couldn’t turn out work trailers and lodges quickly enough. Its manufacturing facilities were kept humming, putting together thousands of camp rooms destined for the Fort McMurray area or other remote project hubs. But as crude prices plunged at the end of 2014 and the flow of workers heading north dried up, the company was forced to adapt. Taking stock of its capabilities, it
on-sitemag.com / 39
PHOTO: PCL CONSTRUCTION
MODULAR CONSTRUCTION
The shop floor at a PCL modular facility. The company produces a range of building components and complete structures at its off-site operations.
Amico Infrastructures Inc. is one of the traditional contractors expanding into the modular space. Through its A-Linx Building Technologies subsidiary, the company opened a manufacturing facility adjacent to its headquarters outside Windsor, Ont. four years ago. It’s since put up a handful of multi-unit residential projects, primarily seniors’ homes, across southwestern Ontario. “The future is bright, obviously, with this construction because not only does it save time, it saves money overall when it comes to speed of construction.” says Dave Hunter, the senior manager of business development with A-Linx. Like Horizon North, the company has looked to the auto industry as the basis for its manufacturing. Before landing at A-Linx, Matt Pellitteri, the company’s plant manager, took on a range of roles at the Windsor Chrysler plant, which builds the Pacifica minivan. With a background in
40 / JUNE 2020
lean manufacturing, Pellitteri applies this low-waste, high-optimization approach to building the company’s load-bearing wall systems. The light-gauge steel panels are manufactured similarly to how you’d build an engine at a sub-assembly plant, he says. “All these parts are introduced into a framing table,” Pellitteri says. “Inversely, if you were in the field and you were doing it with wood, you would have a guy with a saw, he’d be cutting it piece by piece and he’d be building it up while all our pieces are sub-assembled and introduced into a panel.” One of the main draws of the A-Linx system is its ability to provide the entire superstructure. “We call it one neck to choke,” Pellitteri says. “We can go in there and we can go from footings to roof and not many other outfits are providing that right now. That’s what people are gravitating toward. One
trade, one quote, you’re getting your flooring system, your load-bearing interior and exterior walls, shafts and we coordinate the structure steel as well.” With its manufacturing base in Oldcastle, Ont., the company is targeting the Ontario market, and looking to jump the river into Michigan and other nearby states. As in other industries, ground transportation for modular construction can become cost inhibitive as you ship farther afield. With this in mind, Bird Construction Inc. is taking a different approach. In 2017 it acquired a 50 per cent stake in Stack Modular Structures Ltd., which manufactures its turnkey structural steel building modules in China and then ships them across the Pacific. Andy Berube, vice-president of sales and marketing at Stack Modular, said its plant in Shanghai lets it leverage the global supply chain while keeping transportation costs consistent for cities across the west
coast of North America – from San Diego to Anchorage. Like other modular companies, Berube says the market has been growing rapidly as architects, developers and contractors become more receptive to off-site construction. “I would say, over the last two years, maybe a little bit more, the interest has been escalating ten-fold,� he says, pointing to affordable housing projects in Vancouver and other areas on the Pacific coast as particularly promising. Given Bird Construction’s stake in the company, Stack Modular can take care of on-site installation in-house, but will also partner with other contractors on stacking the modules and finalizing the projects by connecting the mechanical, electrical and plumbing systems. It’s a similar situation at Horizon North, which typically executes design-builds – taking projects from design, through estimating, engineering, manufacturing, transportation and installation. According to Joe Kiss, Horizon North’s president of Modular Solutions, the company’s niche is primarily multi-storey projects, with a focus on hotels, student, senior and affordable housing. But its products run the gamut. “We do everything from a small parking kiosk where you would pay for your parking as you exited the parkade, to a lot of specialty applications like convenience stores, for instance, Petro Canadas and A&Ws,� he says. Component work is also common for modular builders. PCL Construction, for instance, has begun manufacturing wall panels, washroom pods and several other products at off-site facilities. The components are shipped to job sites to complement and speed up the conventional construction process. In the case of a washroom pod, concrete crews on-site leave a depression for the module as they pour the slab, while pre-fab teams at the modular plant assemble the washroom. Schedules are aligned so the finished pod arrives at the job site in time to be integrated. The method allows contractors to slim down on the number
of workers needed on-site and build in a controlled environment. “As we’ve had more cases come together, more projects built with this model, across North America, across the globe, people are really jumping on that,� says Troy Galvin, manager of PCL’s Agile plant in the Toronto suburbs. While the shift to modular and prefabrication has been underway for several years, the COVID-19 crisis looks likely to accelerate the trend. Prior to the pandemic, Galvin was anticipating blistering growth in off-site construction of around 300 per cent over the next three years. Now, he says the emphasis on speed and the need to limit the size of on-site crews will push the modular market to as much as five-times its current size. “A lot of this is about speed to market and through the pandemic, he says. “It’s really highlighted [the mentality that], ‘Hey
,%33 '2)0%
we need infrastructure fast, we need it now, what do you have existing in your fleet or how quickly can you build us something?’� At the same time, modular plants with fixed washrooms and no weather are more conducive to some of the health regulations builders have adopted to stop the spread of the virus than many job sites, Galvin says. Similarly, Kiss says many of the problems the COVID crisis has created fall “into the wheelhouse� of off-site construction. “Modular is definitely a pretty good tool in the toolbox in terms of responding to the crisis both in the near-term, medium-term and long-term,� he says. But it’s not the only catalyst, he adds. “There’s other trends beyond COVID that are doing that,� he says. “Just the very nature of having to build buildings more efficiently and more cost effectively, and quicker and with more cost predictability and cost certainty. Those are driving factors as well.�
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SOFTWARE
By Jacob Stoller
Staying connected through extraordinary circumstances Contractors’ technology teams up their game to keep people connected during COVID-19
C
onnecting people and information across multiple locations has long been a primary focus of technology in construction. Consequently, when the COVID-19 pandemic caused contractors to shut down their offices and bar nonessential visitors from job sites, many already had the tools in place to adapt. In some cases, it was a matter of scaling up capacity or accelerating existing initiatives. “We were in the early stages of an Office 365 Teams proof of concept before COVID-19 hit but we were able to quickly enable it for the entire company and make the software available from a self-service website,” says Melanie Schmahl, manager of Technology Solutions and Architecture with PCL Construction.
all team members. It’s not as easy as just walking by their desk to say good morning.” Preventing social isolation is another concern. “We do have a lot of people that are social distancing alone, and don’t have the ability to get out,” McCaughey says. “We understand the need to stay connected and continue the flow of communication, even when it’s not work-related. Every weekend, in one of our regions, we actually do what’s called a social, where everyone gets together for a massive video call.” Video can also add a personal touch to a call that might otherwise be strictly business, and provides an unusual opportunity for people to get to know each other better. “We’re encouraging people to turn on their cameras and share a little bit about their home work "We sometimes take for granted that when we're in an environment and their personal lives,” Swanson office setting, we're constantly communicating all the says. “So you can share something personal – your pets, your children, your hobbies, that sort of thing. time. But that may not actually be so." That’s been really interesting.” – Jessica McCaughey, Stuart Olson Too many group calls, however, can be tiring. “People are spending a lot of time on group phone Remote traffic has roughly doubled on Bird or video calls,” says Enrico Scirocco, director of Enterprise Tech Solutions at EllisDon. “So lately, I’ve been trying to scale that back a bit Construction’s Citrix environment with no issues. Bird has with my team and have more one-on-one conversations with people.” also accelerated its Teams rollout to support collaboration requirements. “It’s really interesting to show how quickly things can be Amidst all of the adjustment, it’s important to remember that rolled out when people really need the tool,” says Tim Swanson, the construction workers in the field are the ones who are putting Bird’s vice-president of IT. themselves on the line to keep the job sites open and the business At Stuart Olson, an environmental reduction project was fastrunning. tracked. “We had started the process of using online forms and “I spent 20 years on construction sites, so my heart is in the training platforms to reduce our carbon footprint, but this was expefield,” Scirocco says, “and I know what those guys out there deal dited because of our current situation of trying to reduce the amount with on a day-to-day basis. I can’t imagine how they’re coping with of paper sharing amongst people to reduce exposure,” says Jessica everything that’s going on right now. It must be a huge stress on McCaughey, the company’s regional safety manager for Alberta and them to be able to do all the things that they are doing in order to Saskatchewan. keep those jobs open.” While the upheaval to the work environment has been stressful in KEEPING IN TOUCH many ways, it will likely lead to some long term improvements, such One of the biggest technical constraints contractors are facing during as a more consistent effort to keep lines of communication open the pandemic might be home internet access. With the kids at home amongst co-workers. attending Google Classroom or watching Netflix, there may not be “I believe we sometimes take for granted that when we’re in enough bandwidth left to hop into a scheduled video call. In some an office setting, we’re constantly communicating all the time. But regions, especially in rural settings, users may not even have highthat may not actually be so,” McCaughey says. “As a team, in some speed internet access. cases, we’ve had more gatherings and touch points than we would if Keeping people connected, however, is proving to be as much we were in the office.” about psychology as it is about technology. “Team communication can be a challenge,” Schmahl says, “and it is important to make the effort to continue to communicate as you would working in the office. Jacob Stoller is principal of StollerStrategies. Send comments to editor@on-sitemag.com If you manage a large team, efforts need to be made to reach out to
42 / JUNE 2020
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RISK
By David Bowcott
A cautionary tale about making all risk management decisions based on data
T
MARTIN NANCEKIEVILL / ISTOCK / GETTY IMAGES PLUS / GETTY IMAGES
he more I read the collective writings of Nassim Nicholas Taleb the more I’m convinced he will go down in history as one of the greatest thinkers the world has seen when it comes to the topic of risk. If you haven’t had a chance to read some of his works, I highly recommend you do and given the current turbulent times we are living in, you might be best to start with his most celebrated work: The Black Swan: The Impact of the Highly Improbable, which was released in 2007. In this article, I want to discuss one of Taleb’s recurrent themes. Throughout his work, he continually explores how the traditional tool we use to predict future events is flawed. In other words, he takes issue with Gaussian distribution – or normal distribution – being applied to all data sets to predict the likely outcome, or probability, of future events. Taleb agrees the normal distribution strategy has its place within some data sets. Those where no chance for massive outliers exist, for instance, like pay-offs within casino games or the heights of human beings; he calls these data sets Mediocristan. However, he completely disagrees with using such a methodology for predicting future events when the data sets can have extreme outliers, meaning that one single observation can disproportionately impact the aggregate, or the total. Examples of such data sets, which he refers to as Extremistan, include wealth data or financial market data. To illustrate the dangers of using Mediocristan data sets to predict future outcomes he references the tales written by the Roman poet Titus Lucretius Carus. Lucretius wrote that “the fool
believes that the tallest mountain in the world will be equal to the tallest one he has observed.” With this Lucretius Problem, as Taleb calls it, you can see why humanity might treat some data sets like they were from Mediocristan and make confident decisions based on the predictive capabilities of such data sets even though they might very well be missing massive outliers like those found in data sets from Extremistan – thus destroying any predictive potential from the data set. Taleb references real life examples of situations in which Mediocristan data sets were used to make decisions and because those data sets didn’t include the massive outliers, they resulted in catastrophic events. The Fukushima nuclear disaster is a specific event he references whereby the reactor was built to withstand the worst past historical earthquake (the equivalent of the tallest mountain seen to date), but unfortunately there was a bigger earthquake that wasn’t considered in the data set, thus the reactor suffered catastrophic failure with untold costs because of a tsunami caused by this outlier earthquake. So, what does all this mean? Should you just resign yourself to the fact that the future cannot be predicted and thus throw out all data-driven probabilistic modeling as a factor in making future decisions? Or should you disregard what Nassim Taleb is saying and continue to make future decisions based on Gaussian distribution? I don’t think either extreme is a good path, rather, as is often the case in life, you should take a moderate approach to your decision making. I do believe that we are entering an age in which more data will be collected than ever before and the predictive potential of this data will improve over time. Thus, you should do everything you can to invest in strategies to harness your data, and even the data of others, to make better decisions. That said, you should always be skeptical of data sets and their inability to capture all known outcomes as it is this skepticism that will continue to drive future improvement in your data-driven decision making process. Perhaps the greatest investment you can make is being more prepared for the catastrophic outcomes to minimize their impact on your ventures.
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.
44 / JUNE 2020
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CONTRACTORS & THE LAW
By Laura Delemere
COVID-19: When is relief available for impossibility of performance?
O
n March 11, the World Health Organization made the assessment that COVID-19 could be characterized as a pandemic. The health, social and economic impacts of the virus, as well as the unprecedented nature of the government measures adopted in response to it, continue to affect Canada’s construction industry. If a party is unable to perform its obligations under a construction contract as a result of COVID-19, when might it be entitled to relief from performance of its affected obligations? Parties should consult with construction law specialists in order to assess the availability and nature of any relief relating to COVID-19 in the specific circumstances at issue. However, generally speaking, the assessment of whether the affected party may be entitled to relief will include the following key considerations: (a) does the construction contract provide relief for the COVID-19 event at issue; and, if not, (b) does the legal doctrine of frustration apply to the COVID-19 event at issue?
form of additional compensation, an extension of time, or both. Force majeure is a contractual remedy. Therefore, if the construction contract does not contemplate the COVID-19 event at issue, the affected party may not have a contractual footing upon which to base a claim for relief in relation to the same. Depending on the circumstances, however, the affected party may be entitled to relief under the common law doctrine of frustration. Generally, the doctrine of frustration may apply to relieve parties from further performance of their contractual obligations commencing from the time of the frustrating event. In order for the specific COVID-19 event at issue to be considered a frustrating event, it must be a supervening event that was not foreseeable at the time that the construction contract was entered into and was not the fault of either party. The frustrating event must change the nature of the affected party’s obligations under the construction contract such that they can be said to be “radically different” from the obligations the party undertook to perform when entering into the contract. The doctrine will not apply if the contractual obligations the "The language used in the force majeure clause at party is seeking to avoid have merely issue must be carefully assessed in light of the specific become unreasonably harsh, more onerous or more difficult. The frustratCOVID-19 event, as well as the conduct of the parties" ing event must essentially destroy the subject matter of the contract. Where the event at issue is an interruption rather Construction contracts typically include than a permanent change to the contractual obligations, the interclauses that address how risk is to be allocated ruption must affect critical performance under the contract or be amongst the parties in respect of certain unforeseen, supervening so protracted as to effectively bring to an end the subject matter events, which, through no fault of either party, make it impossible of the contract. Whether the doctrine of frustration of contract for a party to perform its contractual obligations. While contracts applies will be determined based on the particular circumstances may deal with this issue in various ways, these clauses are often at issue. referred to as force majeure clauses, a French term translating As discussed above, the relief, if any, which is available to a literally to “superior force” clauses. party affected by COVID-19 will be largely driven by the particular The language used in the force majeure clause at issue must facts at issue, including but not limited to the specific wording be carefully assessed in light of the specific COVID-19 event, of the governing construction contract, the conduct of the parties as well as the conduct of the parties, to determine whether the to that contract, and the actual impacts of COVID-19, which construction contract may provide relief. For example, whether continue to evolve. the force majeure clause refers expressly to a “pandemic” or simiA construction law specialist can assist with assessing the lar event, or whether it generally refers to events beyond either availability and nature of any such relief to which a contracting party’s control, may influence this type of assessment. party may be entitled. In the event that the wording of the force majeure clause is found to apply to the specific COVID-19 event at issue, further Laura Delemere practices law at Borden Ladner Gervais LLP. This considerations include, without limitation: (a) whether the COVIDarticle is provided for general information only and may not be 19 event actually caused the impossibility of performance of the relied upon as legal advice. Please send comments to editor@ contractual obligations at issue; and (b) whether the wording of the on-sitemag.com force majeure clause provides the affected party with relief in the
46 / JUNE 2020
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Stay strong. Build on.
4-year / 250,000-mile protection plan. No payments for up to 90 days. Qualified Customers Only
Your toughness and dedication are appreciated now more than ever. To help, we’re offering select 4-year/250,000-mile protection plans with down payment assistance on 2019 and 2020 models and no payments for up to 90 days when you purchase a new Mack® Granite®. Visit MackTrucks.com/BuildCanada or see your local dealer for details. Act now. Offer valid until June 30, 2020. Final approved transaction terms including down payment are subject to standard Mack Financial Services credit underwriting guidelines and advance policy. Mack Financial Services reserves the right to amend or cancel the program at any time without notice. Approvals will state the program terms and any other conditions deemed appropriate by Mack Financial Services. Except as explicitly described above, program rates may not be combined with any other program or offer. No additional rate discounts are available. This offer is available to Canadian residents only.