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Builders’ DigestToronto Construction Association’s Quarterly Perspective Vol. 2 No.1 Spring 2008RevampingToronto’sWaterfrontProjects move forwardTCA’s 2007 Award Winners!The Generation Gap:Getting young people involvedPCL changes the face of charityChina’s Building BoomPM# 40787580140 years of Service


We know what it takesand we get it done ® .But don’t just take our word for it – all three partners in ourConstruction Law Group have been recognized by theirpeers as leading construction lawyers in Best Lawyers inCanada 2008.*Please join us in congratulating Lori, Janine and Stephen.LORI ROTH416 869 5732lroth@casselsbrock.comJANINE KOVACH416 869 5714jkovach@casselsbrock.comSTEPHEN MORRISON416 860 6624smorrison@casselsbrock.com*The Best Lawyers in Canada rankings are based on 100,000 confidential evaluations by other top Canadianlawyers. Results were published in the 2nd Edition of Best Lawyers in Canada in September 2007.For more information, please visit www.casselsbrock.com© 2008 Cassels Brock & Blackwell LLP. Cassels Brock, the CB logo and the phrase indicated by ® are registered trade-marks of Cassels Brock & Blackwell LLP. All rights reserved.


contentsFeatures10 Revamping Toronto’s Waterfront: Projects aimed atrevitalizing Toronto’s <strong>waterfront</strong> move aheadBy Nestor Gula15 The Generation Gap: Is the industry doing enough toattract young professionals?By John Schofield18 Best of the Best: TCA’s 2007 Award WinnersBy Liz KatynskiPage 10FeaturesPage 1522 Turning a Corner: TCA’s Brian Foote comments onhis illustrious careerBy John Schofield24 Changing the Face of Charity: PCL’s Professionals Buildprogram gives to the communityBy Nestor Gula27 CCDC 2 – 2008: Reflecting changing industry practisesBy Eric Lee29 China’s Building Boom: The country’s construction projectsmove forward at a brisk paceBy Natalia A. FeduschakDEPARTMENTS6 President’s MessageBy John Mollenhauer33 Upcoming Events34 Index to AdvertisersPage 29Builders' Digest Spring 2008 |


President's messageTheEconomyDebateJohn G. Mollenhauer, PresidentToronto Construction AssociationOliver Wendell Holmes once said,“the great thing in the world isnot so much where we stand, as inwhat direction we are moving.” Inretrospect, the direction we are movingisn’t always a “great thing” and2008 may well be a case in point.Not a day goes by that we don’t readabout imminent recession. The U.S.is arguably already in recession andthere are as many views about thelength and depth of the current economicdownturn as there are economists.And we’re all economists…just not “qualified” ones.For those without U.S. operations,what goes on south of the border isonly germane if we believe the U.S.economy has overwhelming influenceon the Canadian economy. And it does! In fact, the strugglingU.S. economy, coupled with higher energy prices, a stronger Canadiandollar and increased competition from emerging markets,presents a considerable challenge for the Canadian economy. Andprospects for the next 12 to 24 months aren’t great.Having said that, our circumstances are quite different in Canada.So let’s take a moment to look at our uniquely Canadian situationand, just for fun, speculate how the drivers slowing the domesticeconomy will likely impact the construction industry.Let’s begin by looking at housing starts. In the U.S., the FederalReserve’s strategy in the wake of last year’s sub-prime mortgage crisiswas to aggressively lower interest rates. This year, the Fed is againaggressively lowering interest rates… this time to restore consumerconfidence and stimulate economic activity. The not-so-good news,however, is that the inventory of unsold housing units continuesto grow and the U.S. economy is going from bad to worse despitelower rates.In Canada, the Bank of Canada has been lowering interest ratesat a more modest pace which, combined with our stronger dollar,has resulted in lower inflation. Housing starts are down to be sure,but consumer confidence is higher than in the U.S. and we mayhave more “staying power.”It also doesn’t hurt that our federal and provincial governmentsare committed to infrastructure renewal. It’s bad news, of course,that it will cost in excess of $140 billion in Ontario alone to bringour aging infrastructure up to a reasonable standard. And it’s badBuilders’DigestToronto Construction Association’s Quarterly PerspectiveToronto Construction Association’s Quarterly PerspectiveTCA Builders’ Digest is published for theToronto Construction Association70 Leek Crescent, Richmond Hill, ON L4B 1H1Tel: (416) 499-4000 • Fax: (416) 499-8752www.tcanetworks.comPublisherEditorAssociate EditorSales SupervisorSales ExecutivesContributing WritersRobert ThompsonCydney KeithRoma IhnatowyczSharon KomoskiProduction Team Leader Zig ThiessenGraphic Design SpecialistPublished by:Les Bridgeman, Gary FusteyBruce Jones, Steve BeauchampNatalia A. Feduschak,Nestor Gula, Liz Katynski,Eric Lee, John Mollenhauer,John SchofieldJames T. Mitchell,5255 Yonge Street, Suite 1000Toronto, Ontario M2N 6P4Toll Free: (866) 216-0860 ext. 229robertt@mediaedge.ca1 Wesley Avenue, Suite 301Winnipeg, MB Canada R3C 4C6Toll Free: (866) 201-3096Fax: (204) 480-4420www.mediaedgepublishing.comPresidentToronto Construction AssociationSenior Vice PresidentProduction ManagerKevin BrownRobert ThompsonNancie PrivéAll rights reserved. The contents of this publication may not be reproducedby any means, in whole or in part, without the prior written consent of theassociation. Published December 2007.Publication Mail Agreement #40787580Return undeliverable copies to:Toronto Construction Association70 Leek Crescent, Richmond Hill, ON L4B 1H1Phone: (416) 499-4000 • Fax: (416) 499-8752 | Builders' Digest Spring 2008


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President's messagenews that we wouldn’t get much done without P3s.However, provided the intrinsic efficiencies of privateenterprise at least off-set the higher borrowing costs inthe private sector, infrastructure renewal will be a powerfuldriver in our local economy well into the foreseeablefuture.I wish prospects were as favourable for the manufacturingsector, particularly since it contributes nearly 20 percent of our GDP. But the sluggish U.S. economy, highmarginal tax burdens and under-investment in machineryand equipment combine for a lacklustre forecast. Todate, job losses in the export-dependent manufacturingsector have been absorbed by other sectors — constructionforemost among them — and consumer confidencehas been only marginally impacted.In some respects, the statistics surrounding the driversthat theoretically dictate our economic health serve onlyto confuse. And the real enemy is “uncertainty.” In thelast few months, for example, construction starts (sectorby sector) have been more volatile than ever as consumersgrow tired of all the confusion. Newspapers are filledwith speculation about higher energy prices, higherunemployment, declining housing starts, abnormallyhigh business tax structures (federal and provincial)and an aging workforce. Add to that the fact that ourskilled workforce is migrating to other provinces in largenumbers, and consumers predictably begin to panic.It probably wouldn’t be so bad if our economists gottogether, studied the facts rationally and agreed to readfrom the same song sheet. But, hey, contractors will probablystart reading their contracts before that ever happens!So what does it all mean to us, meaning we non-residentialconstruction industry professionals in southwesternOntario. The bottom line is — not much! We’ll haveour ups and downs and there is no question about aneconomic downturn overall. But I believe the local ICIconstruction market will hold its own this year and perhapsnext year as well.Food for thought? |BDRespectfully,John G. Mollenhauer, PresidentToronto Construction AssociationCanWellInsurance andFinancial Services Inc.7 8 M i l l w i c k D r i v e To r o n t o O N M 9 L 1 Y 3Te l : 4 1 6 . 7 4 7 . 6 0 5 9 F a x : 4 1 6 . 7 4 7 . 6 9 0 3w w w . s p r i n t i n s i g h t . c o mTo t a l R e s p o n s i b i l i t yExperienced brokers willing to work and grow with small andmedium size contractors and tradesmen.We have strong and stable insurance markets for most trades.We offer: • business insurance • commercial auto• professional liability • contract surety bondsNorman Ritchie, BA, CIPCANWEll INsuRANCE ANd FINANCIAl sERvICEs INC.80 Acadia Ave, ste. 306, Markham, ON l3R 9v1Tel: (905) 513-9802 ext. 228 Fax: (905) 513-9830Email: nritchie@canwell.ca | Builders' Digest Spring 2008


COVER STORYThe East Bayfront area of the <strong>waterfront</strong> will include the new headquarters for Corus EntertainmentLong in theplanning stages,projects aimedat revitalizingToronto’s<strong>waterfront</strong> aremoving aheadRevampingToronto’sWaterfrontBy Nestor Gula10 | Builders' Digest Spring 2008


THERE HAS BEEN DISCUSSION OF REVITALIZING THEToronto <strong>waterfront</strong> for as long as mostliving Torontonians can remember.Today, discussion is turning into actionas progress is finally being made. Severalcalls to tender have been issued byWaterfront Toronto, the organization incharge of redeveloping parts of Toronto’s<strong>waterfront</strong>, and construction on someprojects has begun.Established in 2001, WaterfrontToronto’s mission is “to put Toronto atthe forefront of global cities in the 21stcentury by transforming the <strong>waterfront</strong>into beautiful, sustainable new communities,parks and public spaces, fosteringeconomic growth in knowledge-based,creative industries and ultimately redefininghow the city, province and countryare perceived by the world.”Governed by a 13-member boardof directors appointed by the federaland provincial governments and theCity of Toronto, Waterfront Torontoworks with the community and publicand private sectors to create <strong>waterfront</strong>parks, public spaces, cultural institutionsand diverse and sustainable commercialand residential communities.John Campbell, Waterfront Toronto’spresident and CEO, acknowledges thatthe process has been longwinded. Buthe points out that three core projects— Central Waterfront, East Bayfrontand West Don Lands — are currentlyunderway. Requests for proposals forredevelopment have been issued forsome parcels and new ones will be issuedfor other parcels very soon. “West DonLands is moving forwards as well as theCentral Waterfront,” says Campbell.“And we are starting up in the EastBayfront very soon.”CORUS ON THE EAST BAYFRONTOn the East Bayfront, constructionof the new headquarters for mediagiant Corus Entertainment is currentlyunderway. With a budget of over $100million, the project is being developedby the Toronto Economic DevelopmentCorporation (TEDCO), with input fromthe City of Toronto, Corus Entertainmentand Waterfront Toronto. Aecon GroupInc. won the construction contract.The building will include approximately500,000 square feet for an officeand broadcast centre, as well as retailspace and a public promenade alongthe edge of Toronto’s harbour. It willalso be gold-certified under LEED(Leadership in Energy & EnvironmentalDesign) standards, in keepingwith TEDCO’s goal of supportingsustainable development initiatives andenvironmental best practices.The new Corus headquarters is meantto start the revitalization of the areasouth of Queens Quay Boulevard nearthe Jarvis Street slip. “The Corus buildingis a single site,” explains Campbell. “Therest of the area will be following soon.We are designing the municipal servicesand infrastructure.”What is challenging, adds Campbell,is “creating an environment for employment.Corus will have well over 1,100employees in the area to bring jobs intothe city.”Additional projects on the EastBayfront are also moving forward,including the Jarvis Street slip. Thedesign was announced in early Februaryand the project will go to tender overthe winter of next year with constructionto start in 2009. Construction onSherbourne Park will start that sameyear, with some infrastructure workalready taking place, including road andpipe work. Other blocks of developmentwill also be up for tender soon. “A firstproposal call is going out in March for amixed-use piece and another call goingout for a residential piece for about600,000 square feet,” says Campbell.In the Central Waterfront area,Waterfront Toronto is undertaking theconstruction of Spadina Head of Slip,consisting of a 700-square-meter woodenpedestrian deck over water, adjacentto the foot of Spadina Avenue south ofQueens Quay Boulevard.Somerville Construction will overseeconstruction work, which will consist ofpile driving, dock wall repairs, in-waterfisheries habitat construction, deck installationand landscape improvements.Work on the project began in October2007 and is scheduled to be completedby June 2008.WEST DON LANDS GETTING READY TO GOOver on the West Don Lands workis also progressing. “West Don Lands isunder major construction right now.Our partner Ontario Realty Corporation(ORC) has got people working on thereplacement of the lower level interceptorsewer and we are preparing thearea for the flood protection landformand the subsequent parks — that’s allunder way,” says Campbell.The West Don Lands area will be thefirst new <strong>waterfront</strong> neighbourhooddeveloped as part of the revitalizationof Toronto’s <strong>waterfront</strong>. The majorityof the West Don Lands is owned by theGovernment of Ontario and managedBuilders' Digest Spring 2008 | 11


COVER STORYon its behalf by the Ontario Realty Corporation (ORC).ORC is responsible for commercial tenant management,site remediation and risk assessment, demolition and siteclearance and flood protection, which is required forits redevelopment. The first phase of West Don Landsdevelopment involves collaboration between ORC,the community and Waterfront Toronto to transforma vacant, undeveloped brownfield site into a vibrant,mixed-use, sustainable community.The first proposal call has already been issued for850 residential units in the West Don Lands. Campbellexpects the units to be pre-sold this summer andconstruction to begin this fall. Developers have alreadybeen short listed for the project, including MonarchCorporation and Fram Building Group with Graziani& Corazza Architects and Cobalt Engineering, OnniDevelopment Capital Corp. with Gomberoff BellLyon Architects.The majority of the work being done in The West DonLands to date concerns the berm, built to protect thearea from flooding. “That’s the key issue there — floodprotection landform,” says Campbell.The berm is necessary to control erosion and othereffects of the Don River and is comprised of about300,000 cubic metres of soil formed to protect againstthe Don River flooding. “It is a very shallow slope thatcan’t be washed away. That is to protect the easternside of Toronto from a Hurricane Hazel type of storm,”explains Campbell, in reference to the 1954 hurricanethat washed away many parts of the city and killed 81 ofits inhabitants.“Before completing any development we have to dothis. And before we did the berm, we had to open up theCN bridge,” says Campbell. “If you did have the flood,the berm would contain the water and you would blowthe bridge out. Another problem with the berm is thatit is being built on top of the old river bed which haspockets of compressible soil that is sometimes as muchas 40 feet deep. We have had to wick out all the water.The wicking has been done with 28,000 wicks and thenwe will be bringing the soil in and compressing it.”As well, the Toronto Community Housing Corporation(TCHC) has a project to build some affordablehousing on the corner of Kerr and King. The affordablerental and market ownership homes in this area willcreate 130 affordable family units in a mix of rent-gearedto-incomeand affordable rental, as well as 40 units ofmarket ownership housing. The buildings are to be builtThe Spadina Head of Slip consists of a 700-squaremetrewooden pedestrian deck over water12 | Builders' Digest Spring 2008


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COVER STORYThe first proposal call hasalready been issued for850 residential units inthe West Don Lands andconstruction is expectedto begin this fallto LEED gold certification. “The proposal calls are withthe developers, the Tridels, Monarchs, etc. They will bebidding on it and then hiring the various constructionfirms,” says Campbell.A LONG TIME COMINGSome people might complain that the whole <strong>waterfront</strong>revitalization in Toronto is taking a long time, andCampbell would agree. However, he says there are validreasons for this. “There is a lot of work to be done. Wehave had to rezone and get approvals from government.Toronto is a very democratic city. We have to engagethe public and make sure that as you do the designsand planning that in fact you get the best vision andthe best results. The local population is a very importantelement.”Campbell adds that while it does take longer, thedecisions that result are better and they stick. “It is a veryintensive process. The environmental assessments take along time. There are EAs for everything. For the bermitself they had to create a whole flood methodology andthis was subject to an environmental assessment — thistook a year-and-a-half. These are things that are part ofthe whole complicated problem.” |BD14 | Builders' Digest Spring 2008


TheGenerationGAPAs baby boomersretire and Canadafaces a loominglabour shortage,is the constructionindustry doingenough toattract youngprofessionals?By John SchofieldYOUTHTHE NUMBERS PAINT AN ALARMING PICTURE:between 2006 and 2015, about150,000 workers are expectedto retire from the constructionindustry in Canada and another92,000 positions will be created. Addup the figures and the total demandcould reach a staggering 244,000workers, according to the OttawabasedConstruction Sector Council,a national organization establishedin 2001 to tackle long-term labourforce issues in the industry. Shortagesare already affecting sometrades in parts of the country.To help avert a full-blown crisis,some observers say the industry willhave to do a better job of attractingyoung people into constructiontrades and management positions.“Young people don’t thinkwhen they’re graduating fromhigh school that the constructionindustry is a suitable job — it’slooked down on,” says Joe Perry, aproject manager with MississaugabasedEllisDon Corp. and chairof the TCA’s Young ConstructionExecutives group. “I think thedamage is done. Now it’s going totake us a while to patch it up.”Builders' Digest Spring 2008 | 15


YOUTHThe “dirty hands” image is hard to shake. And that negativeperception often originates with parents, says Shaun“Thorson, the executive director of Skills/CompétencesCanada, a non-profit organization based in Gatineau, We’re a differentQuebec that promotes careers in skilled trades and technologiesto Canadian youth. From 2003 to 2006, Skills Canada generation thanteamed up with the Ottawa-based Canadian ApprenticeshipForum, which promotes and supports apprenticeshiptraining and education, to study the attitudes of young our parents were;people and their parents. “We found there still is a bias,”says Thorson. “A lot of people think these careers are valuable,but they’re not valuable for their son or daughter.”I don’t think weThose feelings may reflect the younger generation’schanging attitudes toward work, says Perry. “We’re a have the samedifferent generation than our parents were," he explains "Idon’t think we have the same work ethic. Now people want work ethic. Nowto do office work rather than doing physical work.”Organizations like the Toronto Construction Associationand Skills Canada are working to make construction people want tocareers more appealing to young people. Simply makingthem aware of the advantages is critical, and one of the do office workbiggest is the pay. Workers in the skilled trades can earn$60,000 to $80,000 annually after only two or three yearson the job. With overtime, the income potential is even rather than doinghigher. “You can make six figures in construction, and I’mnot sure people believe or realize that,” says Perry. “You can physical work”make a good living at it, and because of the shortage, it maybe even a better living.”The construction industry also offers a wide variation oftrades and real potential for advancement, says Thorson. Joe Perry, EllisDon Corp.*Over 1,000New Century Software Inc.New Century Software Inc.Authorized Jonas Software DealerConstruction Software SpecialistsMICROSOFT® CERTIFIED PARTNER• Job Costing/Accounting• Comprehensive Change Order• Construction Management• Document Control• Service Work Order/DispatchTel: (905) 889-1771 Ext.222 www.newcentsoftware.come-mail: sales@newcentsoftware.com16 | Builders' Digest Spring 2008


Many jobs require high levels of skill and intelligence.Some are clean, others are dirty. But a young personwho chooses to become a carpenter, for example, willnot be stuck in that career for 35 years. Trades-peoplecan rise to become foremen, project managers, estimatorsor bidders. “There are stepping stones that peoplecan take,” says Thorson. “I think we need to get thatmessage out with apprenticeship careers, that there willbe constant learning and there’s a real opportunity tobuild a career.”The challenge for the industry is finding a way toconnect with youth. “How do you speak the languageof young people to really get them interested?” asksThorson. “There are a lot of complex issues.”A NEW APPROACHSkills/Compétences Canada takes an experientialapproach by organizing skills competitions acrossCanada that allow young people to actually try a trade.The organization also offers summer skills camps,special conferences and in-school presentations inmany regions.Schools and governments are also making an effort,although more could be done, says Thorson. Afteryears of cutbacks, shop courses are gradually beingreintroduced by many school boards. Initiatives like theOntario Youth Apprenticeship Program and its equivalentin other provinces enable students to start apprenticeshipprograms early.The Toronto Construction Association is also involvedin raising awareness through school visits, its speakersbureau and tcaconnect.com, a website that providesinformation on dozens of careers in construction. TCAofficials are being invited to more career fairs and arestarting to make presentations to younger students.At one point last year, Perry says he talked to a Grade3 class about working in the construction industry.“Research has somehow proven that you need to talkto kids at a young age,” he says. “They make these decisionsyounger than we think.”The industry in Canada is a world leader in areassuch as the use of sophisticated forecasting models topinpoint potential demand in particular trades, saysGeorge Gritziotis, executive director of the ConstructionSector Council. Countries such as Australia are learningYOUTHfrom Canada’s approach to the problem. The Canadianindustry is progressive in other areas, too. One example:the council is actively promoting construction careers toaboriginal youth, one of the fastest growing demographicsin Canada.Still, the industry could be doing more, says Thorson. Ina study of 1,000 companies in construction, manufacturing,transportation and the service industry, Skills Canada andthe Canadian Apprenticeship Forum found that only18 per cent were offering apprenticeship opportunities.“There is this perception that if you hire an apprentice, it’scosting you money,” says Thorson. “But in 15 trade areas,on average, for every dollar invested, they got $1.37 back inproduction. You’re actually getting strong production backwhen you employ apprentices.”Time is clearly running out. In trades such as masonry,Perry estimates, about 80 per cent of the workers are intheir 50s and will be ready to retire in the next five to 10years. In addition to attracting more young people, theindustry will have to work harder to retain older workers,and may have to consider hiring foreign trades people ontemporary permits. Thorson says strides are being made inimproving worker mobility within Canada.But in Alberta, with its booming oil sands sector, andBritish Columbia, with the Winter Olympics, the industryis already feeling the pinch. “In Ontario,” says Perry, “we’reable to get work done, but it’s been difficult at times to findmen to do certain jobs. I think people are realizing now it’sjust going to get worse.” |BDY O U R T O T A L SE R V I C E C O M P A N YRADAR SCANNING & X-RAYA N Y W H E R E / A N Y T I M E1 888 457-8120www.graffconcrete.comBuilders' Digest Spring 2008 | 17


TCA AWARDSBest of the BestBy Liz KatynskiThe winners of the 2007 Toronto Construction Association Awards shineas the best in their field for diverse categories ranging from innovationto safety performance. Leading the way is Rod Kelson, recipient of theDonald P. Giffin Sr. Construction Industry Achievement AwardRod Kelson,President,Geo. A. Kelson2007 DONALD P. GIFFIN SR. CONSTRUCTION INDUSTRY ACHIEVEMENT AWARDRod Kelson of the Geo. A Kelson Company LimitedROD KELSON BELIEVES IN HIS PEOPLE.His company, Geo. A. Kelson CompanyLimited, rose to the challenge of findingwork for most of its people rather thanlaying them off during the tough times ofthe 1990s recession.“We found work for our people. Wekept over 90 per cent of them,” saysKelson, president of Geo. A. KelsonCompany Ltd, one of the largest mechanicalcontractors in the ICI sector. “It waschallenging but we are being rewardedtoday. They are still with us during thisvery busy period.”Rod Kelson and his company wererecently honoured with the 2007 Donald P.Giffin Sr. Construction Industry AchievementAward. The Toronto ConstructionAssociation (TCA) presents thishonour each year to a person or organizationthat has assisted the constructionindustry through major contributions toits progress and development.“I was quite surprised to be chosen andI am honoured to receive this award,” saysKelson. “It’s a benefit to the company tobe recognized in this way.”Geo. A. Kelson has built many majorbuildings in and around the Torontoarea. They recently completed twolarge hospital construction projects inthe region. “We gradually get betterand better,” says Kelson. “We meet andexceed expectations. We think we set thestandard with quality work completed ontime by lots of good people, our people.”The key to that success is to treatpeople well, says Kelson. “We don’tcontrol. We allow everyone to bring whatthey have to offer to the table and growfrom it. We learn from each other, livewith our mistakes and benefit from goodproductive ideas. That makes us a bettercontractor,” he explains.It’s been a banner year of achievementsfor the company. In 2007, Geo. A. Kelsonwas recognized as one of Canada’s 50Best Managed Companies and won twoawards from the Newmarket Chamberof Commerce: Business of the Year andExtraordinary Large Business of the Year.The company was also recognized forits dedication to safety on the job withthe MCAT Safety Award for over 50,000manhours.“We don’t usually seek out awards. Wedid enter the Best 50 Companies and itwas quite an honour to be included inthat select group. We were also in selectcompany with the Chamber award recognizingmany of our large projects inNewmarket,” says Kelson.A member of the Mechanical ContractorsAssociation of Toronto since 198518 | Builders' Digest Spring 2008


TCA AWARDSand a past president, Kelson grew up in the family businessthat his father, plumber George Kelson, foundedin 1944 in Thornhill. Rod and his brothers, Larry andDon, always knew they would be a part of the businesstheir father built. They worked there in the summers,did their plumbing apprenticeships there and atGeorge Brown College, and essentially learned the businessfrom the ground up. “We started as coffee boys andthen graduated to helpers. We were apprentices, journeymen,foremen, project managers,” says Kelson.The company moved to Newmarket in 1976,and Kelson became president in 1982. His brotherLarry is secretary treasurer while his other brotherDon is construction manager. Since that time, Geo.A. Kelson has grown from a team of 20 people toover 300, with annual volume of work up from$1 million to $150 million in 2007.In Kelson’s view, the company grew and prosperedover the years because he and his team hired people whodid a good job and they continued to find work for thosepeople. If they needed more, the company grew a littlemore, and so on. “We have been growing because we havemore mouths to feed,” says Kelson. “I was just hoping tomake a good living to support my wife and kids.”Eventually Kelson and his brothers bought out theirfather and made the company their own. “From themoment I took over, I wanted to build a team that wouldprovide continuity when we stepped away. I had no ideajust how far those people would take the company,” hesays. “We are getting a lot of work now and are continuingto grow from there.” |BDGeo. A. Kelson Company was involved in theconstruction of the Telus Tower in TorontoGeo. A. Kelson Co. Ltd.Mechanical ContractorINTEGRATED SOLUTIONS THAT WORKThe ACES Group of Blaney McMurtry isdelighted to congratulate one of its own,Lea Nebel, upon her receipt of the 2007Sean P. McKenna Young Construction ExecutiveLeadership Award. Well done, Lea!ACES Group contact:Geza R. Banfai416.593.3904gbanfai@blaney.comNewmarketKingstonOttawawww.blaney.comBuilders' Digest Spring 2008 | 19


TCA AWARDSMoreBest of the Best 2007The other 2007 Best of the Best Award winners are:PROJECT ACHIEVEMENTEllisDon for William Osler Health Centre inBrampton, OntarioEllisDon built this innovative $536-million facilitythat opened in July 2007. They also helped financeit through a new type of private and public financingpartnership. The centre features the latest technology,including the PICIS patient tracking security system andsix automated check-in kiosks that direct patients with aswipe of their health card.Vanbots Construction Corporation for the RoyalOntario MuseumVanbots acted as the Royal Ontario Museum’s buildingdepartment on this $230-million project. It included anaddition and renovation with 220,000 square feet ofcrystal form added. The project was completed between2003 and 2007.OUTSTANDING SAFETY PERFORMANCEEllisDon for William Osler Health CentreEllisDon completed this big project safely. The newhospital is about 1,300,000 square feet, with 608 acute carebeds and 18 operating rooms. It was designed for 90,000emergency visits, 160,000 ambulatory care visits and 4,250births per year. The seven-storey parking garage is 475,000square feet with 1,100 parking spaces. The entire structureis created of reinforced concrete, complete with waterprooftraffic topping on all floors and an asphalt coated roof.EllisDon won both the Project Achievement Award and theOutstanding Safety Performance Award for its work on the WilliamOsler Health Centre in Brampton, OntarioHONOURABLE MENTIONSPCL Constructors for BMO FieldPCL built the new 159,693-square-foot BMO SoccerStadium at Exhibition Place near downtown Toronto.This 20,000-seat complex included player changerooms, training and weight rooms, warm-up rooms,press conference rooms and TV production area. Amezzanine includes office space and a VIP club areawith access to about 500 club seats. The stadium wascompleted in 14 months.Aecon for the University of GuelphAecon were the general contractors on the first andsecond phases of a new science complex at the Universityof Guelph. The first phase was completed in 2004.The second, a four-storey, 230,000-square-foot buildingwith a steel tree supporting a skylight over its atrium, wascompleted in 2007.20 | Builders' Digest Spring 2008


TCA AWARDSINNOVATION AWARDWilkinson Chutes for Metro GroupWilkinson Chutes makes specialized equipment for thecollection of soiled linen, rubbish, dust and material on jobsites. The company was recognized for its innovative workin this area for Metro Group.TRADE CONTRACTORBothwell-Accurate Co. Ltd.For over 80 years, Bothwell-Accurate has done commercial,industrial and institutional roofing, waterproofing,maintenance and sheet metal work. It is one of theoldest companies of its kind in Toronto, with over 40,000completed projects, a wealth of experience and a completeline of roofing and waterproofing services.DISTINGUISHED VOLUNTEERChris Welch of Jacques Whitford LimitedChris Welch was recognized for his efforts to promotethe environment on his own time, including writing articlesand doing research. Welch works for the premieremployee-owned provider of engineering, environmentaland earth science solutions in North America.MATT STAINTON TOP GUN AWARDMatthew Stainton for PCL Constructors Canada Inc.Matt Stainton is the TCA board chair. He startedworking for PCL Constructors Canada as a student andjoined the company in 1995 after completing his studies.Stainton has an economics degree from the Universityof Waterloo and a management studies diploma fromYork University’s Schulich School of Business. He is nowthe senior projects manager at PCL and relationshipsmanager for national partnerships.GREEN BUILDING CULTURE AWARDStantec Architecture Ltd.Since 1954, Stantec has provided professional designand consulting services in planning, engineering, architecture,surveying, economics and project management.The company is a world-class leader and innovator in thedelivery of sustainable solutions, supporting public andprivate sector clients in a diverse range of markets frominitial concept and financial feasibility to project completionand beyond. It has 8,500 employees and over 125 locationsthroughout North America.THE CONSTRUCTION INSTITUTE FOR THE CHANCELLOR’S AWARD OF EXCELLENCEBill Nichols of Mutual GainBill Nichols is the vice president of Mutual Gain. He is adedicated part of a company that has a solid reputation inthe development and construction industry. Mutual Gainfocuses on project management and forensic capabilities.Applying its vast knowledge has led its clients to achievegreat financial success.SEAN P. MCKENNA YOUNG CONSTRUCTION EXECUTIVE LEADERSHIPLea Nebel of Blaney McMurtryLea Nebel is a member of Blaney’s commercial litigationgroup and Architectural, Construction, EngineeringServices (ACES) Group. Nebel focuses on creditor-debtorand construction law litigation with clientsincluding financial institutions, leasing companies andsecurity companies. Nebel handles dispute resolution forcontractors, subcontractors, suppliers and customers inthe construction industry.DIRECTORS HONOUR ROLLChristopher Dossett and David GeorgeChristopher Dossett and David George were recognizedfor their outstanding dedication during their time on theTCA Board of Directors and their related efforts.Builders' Digest Spring 2008 | 21


Professional ProfileTurning a CornerAs he enters a new phasein his life, TCA’s longtimedirector of labour relationsBrian Foote comments onthe evolution of Toronto’sconstruction industry, hisillustrious career and hisplans for the futureBy John SchofieldFOR 30 YEARS, BRIAN FOOTE HAS SERVED AS DIRECTOR OF LABOUR RELATIONSfor the Toronto Construction Association. During those threedecades, he has witnessed enormous growth and fundamentalchanges in the industry. Last April he turned 65, and in January,he officially handed the baton to Tom Howell. He will remainin an advisory capacity until next year. He recently sat down withTCA Builders’ Digest to reflect on his career.Builders’ Digest: How did you get started in the construction industry andthe labour relations field?Foote: I had some interest in the industry because I had workedas a summer student as a water-proofer. I developed an interestin labour relations while I was at university. But it was hard to getinto the field without some experience. In the summer of ’64,I was able to get an entry-level industrial relations position withOrenda Engines at Downsview. They built the engines for theAvro Arrow. It was very interesting as a young person, but I wasnever totally happy in the enclosure of the factory. I joined thePersonnel Association of Toronto, now HRPAO, and met somepeople from Ontario Hydro who were involved in constructionlabour relations, which to me was more interesting than theshop floor. They told me they’d be advertising for an entry-levelconstruction relations position. I applied and was successful. Iwas there in the ’60s and ’70s, a period of huge expansion.Brian Foote,former Directorof LabourRelations, TCABD: When did you join the TCA?Foote: In 1977, I was approached in one of those friend-of-a-friendthings, and I was asked to put in a resume with the general contractorsdivision of the TCA. I had enjoyed my time with Hydro,but the next move would have been head office. I was 35, and Iwanted to remain in pure construction labour relations.22 | Builders' Digest Spring 2008


Professional ProfileBD: What is the appeal of the construction industry for you?Foote: There’s always continuing evidence that you’re part ofsomething that is building, that is changing, and there is a veryobvious product at the end. An undertaking like the Bruce nuclearplant, where I was responsible for construction trades andthe employment of trades, takes a long time. But its progress isquite evident. I sail a lot, and on Lake Huron it’s a landmark,the lights over Bruce. I was not hands-on building, but you’re apart of it in a way. And there’s a constant change in the type ofwork you’re involved in. There’s an identification, too, with thecity you live in because you know who built the buildings.BD: Is there an aspect of the job that you’ve found particularly interesting?Foote: There’s a feeling that our major role is in collective bargaining.And while it’s significant and it’s the one that attractsthe most headlines, the real work is during the currency ofthe agreement. But probably the most interesting part of thework, and it takes a lot of time, is all of our benefit programs,which are handled on an industry-wide basis. They started toevolve in the ’60s, and these funds have grown almost exponentially.On the health benefits side, there are annual claimsof $20 million plus. We appoint trustees to about 15 funds.Every one of those plans meets at least quarterly. That takes upa significant amount of time. One thing I’d like to recognizeis the tremendous amount of volunteer time by contractors.It’s that long-term contribution from the contractors that I’vealways found remarkable.BD: In what ways have you seen the industry change during your career?Foote: Increasingly, I think the most positive change over thelast 10 to 12 years is a relatively stable market, as opposed to theboom and bust cycles of the ’60s, ’70s, ’80s and early ’90s. Inlabour relations, as much as we’re facing the challenge of nonunioncompetition, there’s no question in my mind that therelationship between employers and their unions has seen asignificant improvement over the years. At Bruce, we had 17 illegalwalkouts over 17 months. That was the way it was — it washead-to-head. I’m not saying all is love and kisses now. But lookat the Ontario Construction Secretariat. It’s unique in NorthAmerica. By law, employers and union workers contribute onecent an hour. Its mission is to collect statistics and promotethe organized industry. The thought of an organization likethat when I started out in the ’60s would have been beyondcomprehension. There has been a huge shift to undertakingjoint initiatives.BD: What do you see as some of the biggest challenges in the years ahead?Foote: One that has been most obvious in the last seven to eightyears is the problem of adding workers at all levels. At a recentmeeting of the National Construction Labour Relations Alliance,that was probably the most common theme. There is abelief, or a belief in the past, that the industry is not attractive toyouth. I disagree with that. I think the industry image has vastlyimproved over the years. The number of applicants always farexceeds our ability to take them in and train them. And the newdegree program in construction management at George BrownCollege — there’s been a tremendous response to that. Themore serious issue is the boom and bust. In the early ’90s, wewent from 1,000 apprentices to 400 in a year or 18 months becausethe industry collapsed, so young people just flooded away.That went on through the ’60s, ’70s and ’80s. We’ve probablyhad the longest period of stability, probably because of interestrates. In the past, though, when manufacturing has got into seriousproblems, construction follows in about two years. As youwatch the Americans’ economic problems unfold, that’s alwaysthe wildcard.BD: When people look back on your career, what do you hope they’ll see asyour most significant contributions?Foote: I guess I’ve tried to work very hard to bring a greater level ofstability in relations between organized employers and the buildingtrade unions. I’ve been particularly happy about the opportunityto be involved in major benefit programs for workers andtheir families. That hopefully has contributed to greater stability,too. It’s also contributed in an unseen way to greater worker supplyand availability because benefits create a greater tie betweenthe worker and the industry. Certainly there has been an improvementin reducing work interruptions, even in a bargainingyear. Whether I had any part in that is for others to decide.I really want to emphasize that I have been blessed withworking with some of the best people in the industry, like JanetTrim, Tom Howell and Rosie Alonzi. I’ve just been blessed withtotally committed people.BD: What are your plans now as you make the transition to retirement?Foote: Probably within the next year we’ll relocate west, somewherebetween Hamilton and Niagara, particularly because ourchildren are in the west. I’m nearing completion on taking aconsulting assignment because I still want to be involved — justnot every day of the week. Like everybody, [my wife] Linda and Iwould like to do a little more travelling and have a lot more timewith our grandchildren, of which there are four now. |BDBuilders' Digest Spring 2008 | 23


COMMUNITYPCL structuredthe ProfessionalsBuild program as acompetition; one ofthe competing teams ispictured hereChanging theFace of CharityBy Nestor GulaPCL’s Professionals Buildprogram shows how constructioncompanies can contribute in ameaningful way to some of theirfavourite charitiesWE ALL KNOW THE SAYING THAT IT IS BETTER TO GIVE THAN TO RECEIVE.In the corporate world, this is increasingly turning into morethan simply writing a cheque for a charity, according to areport by Image Canada.Today, companies want to get more involved with charitiesand contribute in a meaningful way. PCL ConstructorsCanada Inc. (Toronto), a member of the PCL family ofcompanies, is right on the mark with their ProfessionalsBuild community program.Launched last year, the Professionals Build program is aunique volunteering effort that combines philanthropy withan opportunity to connect staff at geographically diverselocations, build leadership qualities and improve employeeengagement and retention.According to Chris Gower, vice president and districtmanager of PCL Constructors Canada Inc., the programwas deeply inspired by a PCL pioneer — ex-CEO and24 | Builders' Digest Spring 2008


well-known philanthropist Bob Stollery. “We created thisprogram really in honour of him,” says Gower. “He was areally big philanthropist, was awarded the Order of Canadaand was an outstanding individual.”It was a quote from Stollery, who passed away in March2007, that was a source of inspiration for the program,says Gower. He quotes Stollery as saying: “As far as givingback to the community, it is a state of mind. We can maketime for anything; it depends on your priorities. Sharingis good business whether it is with coworkers or for thoseless fortunate.”“That became our slogan. We incorporated his vision intosomething tangible in Toronto,” says Gower.EXTENSIVE OPERATIONPCL is a family of companies consisting of independentconstruction companies based in 26 regions across Canada,the United States and the Bahamas. Together, they formthe largest general contracting organization in Canadaand the eighth largest in the United States, with an annualconstruction volume of more than $ 5 billion. The group hasupwards of 3,000 full-time professional and administrativesalaried staff, and an additional 5,000 or more hourly tradespeople at any given time. It is 100 per cent employee-ownedby the majority of its salaried staff.When it comes to giving to the community, each companyin the PCL family conducts its own charitable work gearedtoward the specific community’s needs. For the TorontobasedProfessionals Build program, PCL structured a competitionin order to further motivate corporate volunteers. Theprogram divided volunteers into 11 teams of about 30 peopleeach and every team selected its own approved charity.“They had to have major engagement, meaning how manypeople would they get out on their day of giving,” explainsGower. “And they competed on the basis of which day andwhich team had the best value for the community.”The company arranged for supplies and ponied up cashprizes that would be given directly to the charity the teamwas working for. The teams then won points for participationand the overall impact they made on their chosen charity.Altogether, 361 of PCL’s employees contributed 2,535hours of community service. They were involved in everythingfrom renovating seniors’ homes and participating inchildren development programs, to renovating homelessshelters and packing food at the food bank. “We helpedon a cancer fundraiser, we cleaned up an arboretum, andwe put in new footpaths on the Bruce trail,” says Gower,noting the diversity of projects that the PCL volunteers wereinvolved in.COMMUNITYThe Block 24 project involves the construction of a tower, a midrisebuilding, and amenity and retail space as part of the ConcordAdex CityPlace developmentPCL ProjectsWith a company as large as PCL, there aremany projects on the go. The Toronto branch,PCL Constructors Canada Inc. (Toronto), currentlyhas many projects in progress in theGreater Toronto Area (GTA) and neighbouringregions.The Durham Consolidated Courthouse is amodern facility that will be home to the SuperiorCourt and Ontario Court justice services.Located in downtown Oshawa, it will house 33courtrooms, three motions rooms, two conference/settlementrooms and related legal andWINNING TEAMSThe 11 teams that took part in PCL Constructors CanadaInc. (Toronto) charity work drive all took descriptive namesto help boost morale. The first place team, Community inMotion, renovated the Ina Grafton Gage Home. As partof their prize they gave $5,000 to that charity, says JenniferNelson, communications coordinator for PCL ConstructorsCanada Inc. (Toronto). The Ina Grafton Gage Homeis a long-term care facility in Toronto that has existed formore than a half century.The second place team, Champions for Youth, renovatedBuilders' Digest Spring 2008 | 25


COMMUNITYa youth shelter called Eva’s Place and donated $2,000 to thischarity, while the third place team, Better Living Builders,renovated another youth shelter, Covenant House, andtopped off their work with a donation of $1,000.The event was a success, says Gower, because “thepeople that came out redirected their energies. Instead ofcoming to work, they helped out one of these communityevents.” The winning team, which spent one the hottestdays of the summer painting more than 7,000 square feetof drywall, caulking toilet and tub rooms and installing aprovisions room to make over a badly rundown home forsenior women, got a lump sum of cash that went directly tothe charity.Aside from helping various charities, there were alsonumerous benefits to PCL that came from spearheadingthe volunteer campaigns. In particular, the effort proved tohave untold benefits in the area of teambuilding. “We hadpeople from a job site in Orillia working with an accountantfrom the district head office. We brought people togetherwho otherwise would never have interacted,” says Gower. “We[normally] have a lot of people working on various job sitesfar away from each other and we have a lot of new hires, so itwas important for us to build team dynamics between them.”While PCL performs many philanthropic acts acrossCanada, each district is given the latitude to build its owncharitable program and the Professionals Build programis a Toronto-based initiative. The effort is well worth it,says Gower. “Giving back to the community is one of thetenants of the company. It is one of the things that webelieve in strongly.” | BDProfessionalsBuild volunteersget down anddirty as they workon a constructionproject in Torontocourt services. The building will conform toLEED silver certification standards, focusing onenergy management and conservation. It will bethe most technologically advanced courthousein Ontario and the most energy efficient newOntario government building.The Block 24 project involves the constructionof a 47-storey tower, a 16-storey mid-rise buildingand a two-storey amenity space and retail spaceas part of the Concord Adex CityPlace development.The development is comprised of 18 condominiumtowers that will be built on the TorontoRailway Lands west of the Rogers Centre. Thebuildings will be on a three-level undergroundparking garage, and when complete the complexwill consist of 883 condominium units and939 parking spaces with a total combined GFA ofapproximately 1.1 million square feet.In Ajax, east of Toronto, the Bank of Montrealcommissioned a 6,000-square-foot building with abudget of $2.3 million. This branch is being constructedto achieve LEED certification with elementssuch as Insulated Concrete Form (ICF) forthe exterior shell, landscape and exterior designto reduce heat islands, bike racks, showers, existingbus routes for alternative transportation, hydronicradiated heat to replace the electric baseboardheaters, water use reduction, green power,a recyclable storage room within the facility, and aconstruction waste management plan. |BD26 | Builders' Digest Spring 2008


CCA COMMENTARYCCDC 2 - 2008CCDC 2 - 2008The new CCDC 2 – 2008 ‘Stipulated PriceContract’ reflects changing industry practicesIT WAS A LONG TIME COMING, but on February 1of this year the Canadian ConstructionDocuments Committee (CCDC) publishedits long awaited new edition of the CCDC 2‘Stipulated Price Contract.’The publication of this revised version ofthe CCDC replaces an earlier edition from1994. The substantial revision is viewedas a significant and serious step that wasrequired to reflect changing industry practicesand court decisions, as well as relateddevelopments in areas such as the insurancemarket.There are numerous important changesthat the CCDC 2 introduces. Below is asummary of some of the more notable revisionsand new provisions.REVISIONS• Insurance Requirements(1) Increased insurance limitsBy Eric Lee• Limits for General Liability Insurance,Automobile Liability Insurance andAircraft and Watercraft Liability Insuranceare increased from $2,000,000 to$5,000,000 in recognition of today’scourt judgments.• Limit for Broad Form Property Insurancelimit is increased to “1.1 timesContract Price” and the full value ofProducts and design services that arespecified to be provided by the Ownerfor incorporation into the Work. Builders' Digest Spring 2008 | 27


CCA COMMENTARYCCDC 2 - 2008Accordingly the deductibles are increased from $2,500to $5,000.(2) Clear wording to confirm coverage of the Ownerand the Consultant under the Contractor’sGeneral Liability Insurance policy with respect toclaims arising out of the Contractor’s operationbut excluding liability arising solely from their ownnegligence.(3) In light of the volatile insurance market, the newCCDC 2 will now only contain the general insurancerequirements with reference to the new CCDC 41‘CCDC Insurance Requirements’ for such details aslimits, deductibles, emerging exclusions, etc. CCDC41 is a ‘live’ document that can be readily amendedto reflect changes in the insurance market.• Indemnification — The clauses are rewritten basedon the mutual obligations between the Owner and theContractor. CCDC 2 recommends a monetary limitationon liability in respect of direct claims betweenthe Owner and the Contractor; the amount will besubject to whether the claim is covered by insurance.In respect to claims made by third parties for directloss, the obligation to indemnify is without limit.• Waiver of Claims — The clauses are rewritten toestablish the concept of mutual waivers of claim.The waiver period limit for both the Owner and theContractor occurs at the same time. Primary waiver ofclaims shall be tied to expiry of lien period (five daysprior) instead of “final certificate for payment” in the1994 edition. Waiver of claims arising out of warrantyprovisions shall be tied to 395 days after SubstantialPerformance of the Work.• Warranty — A new provision has been added toclarify that extended warranties shall be issued by thewarrantor to the benefit of the Owner and that theContractor’s responsibility with respect to extendedwarranties shall be limited to obtaining them fromthe warrantor.• Payment — The 1994 edition of CCDC 2 specifiesthat the Consultant will issue a certificate of paymentwithin 10 days following the Contractor’s applicationfor payment and the Owner will pay within five daysfrom the Consultant’s certificate. The new CCDC 2specifies a longer payment period: the Owner to paywithin 20 days (instead of 15 days) from the date theContractor submits his application of payment. TheConsultant is also required to promptly inform theOwner when he receives the Contractor’s applicationfor payment and within 10 days issue to the Ownerand copy to the Contractor a certificate for payment.• Notice in Writing — The article of agreement thataddresses the delivery and receipt of notices in writinghas been revised to allow the use of facsimile andemail provided that during transmission no indicationof failure of receipt is communicated to thesender. Defining this term and referring it in variouscontract provisions making it a mandatory conditionfor the parties to follow this specified notificationmechanism whenever the defined term is used in thiscontract.NEW PROVISIONS• Mould — A new general condition that outlines theresponsibilities of the parties and the proceduresto apply in the event that the presence of mould isobserved or is reasonably suspected at the Place ofthe Work, whether the mould is found to be toxic ornot. When mould is observed, it is incumbent uponthe Contractor to take all reasonable steps to preventinjury, sickness, death and damage to the property.The party responsible for the presence of mould shallat their own expense:* remediate or dispose of the mould,* make good any damage to the Work,* reimburse the other party for the costs of the independentexpert, and* indemnify and hold harmless the other party.• Claims — A new general condition to address theprocedural matters related to the making of a claimfor any kind of additional payment. CCDC 2 - 2008recognizes the difference between a ‘claim’ and a‘dispute.’ A claim may be recognized by the partyreceiving the claim and consequently may not lead toa dispute. A ‘dispute’ only occurs when a ‘claim’ byone party is ‘disputed’ by the other party.• Artifacts and Fossils — Outlines the responsibilities ofthe parties and the procedures to be followed in theevent that artifacts or fossils are discovered. |BDEric Lee is the senior director of industry practices at theCanadian Construction Association (CCA).28 | Builders' Digest Spring 2008


EYE ON THE WORLDChina’sBuildingBoomWith itsunsurpassedeconomicgrowth,construction inChina is movingforward at abrisk paceBy Natalia A. FeduschakTHE FIRST PROJECT CHINESE AUTHORITIES INShanghai wanted Peter Reese and hisCanadian architectural firm to design: awalled compound with only one gate. Thatway, police patrolling the region could justdrive by it without being bothered by whatwent on inside.“They wanted us to provide them witha corporate sustainability standard thatthey could use in all their developments,”says Reese, who is director of communitydesign for Vancouver’s Ramsay WordenArchitects. “We told them we couldn’tdesign a sustainable community insidea wall.”For the second project, however, the wallsliterally came down. Reese’s firm is helpingdesign a new town for 160,000 peoplethat is friendlier and more in keepingwith Canadian standards. This sustainablecommunity integrates businesses,residential units and green spaces thatallow residents to enjoy their surroundingenvironment. “They’re planning to applyScraping the sky: residential apartment buildingsin Guiyang, Guizhou, ChinaBuilders' Digest Spring 2008 | 29


EYE ON THE WORLDour principles,” says Reese. “They have done some masterplanning and they have actually done away with the walls.”Reese’s experience shows just how quickly mindsets — andthe development landscape — are changing in China. Thecountry’s double digit growth in recent years has resultedin a construction boom. From Beijing to Shanghai to HongKong, farmland is giving way to residential projects likethose conceived by Reese’s firm, while shopping malls andskyscrapers, designed by the world’s leading architects, aregoing up faster than they ever would in the West.This is only the beginning, analysts say. Between now and2015, about half of the world’s construction will happen inChina, with as much as six billion square feet added annually.“The Chinese are operating on a very large scale for everything,”says Peter E. Simpson, chief executive officer for theGreater Vancouver Home Builders’ Association (VHBA). “InShanghai, I saw a 105-storey hotel being built.”Winning the bid for this summer’s Olympic Games was amajor stimulus for the country’s construction blitz. SomeUS$40 billion alone is being spent to redevelop Beijing,China’s capital city. Twelve huge projects are being built thatwill transform this city of 15 million by the time the Gamesbegin in August. These projects include an ambitious US$4.6billion expansion of Beijing’s main airport, which city authoritiesexpect will be able to handle flights departing and landingabout every 30 seconds.The airport’s new US$2.8 billion terminal building,designed by British architect Norman Foster, is scheduledto be completed by July. So is a US$250 million state-of-theartbaggage handling system that can handle 19,000 piecesof luggage an hour, made by German engineering giantSiemens AG’s China subsidiary. A new 10-mile light railPeter Simpson of the Greater Vancouver Home Builders’ Associationwith a group of designers and builders in China30 | Builders' Digest Spring 2008


EYE ON THE WORLDSome of the residential construction in China bears a strong resemblance to houses inwestern Europe and North America, such as these homes in Shanghai“The country’smost ambitiousconstruction projectis the Three GorgesDam. When it iscompleted in 2011,by capacity it willbe the world’slargest hydro-electricpower station”system will transport visitors from the new terminal building toBeijing’s city centre in under 15 minutes.Another US$2.4 billion is being spent on Olympic venues. Theseprojects include the 100,000-seat National Olympic Stadium inBeijing, which is being built at a cost of US$423 million. Some110 hotels are being constructed in the Beijing region to accommodatethe expected 550,000 Olympic visitors a day.Beijing’s business district is also being transformed. CentralChina TV will be the anchor for the area, which is as large asLondon’s Canary Wharf. Designed by renowned architect RemKoolhaas, the 550,000-square-metre CCTV headquarters is amongthe first of 300 buildings that will be constructed in Beijing’s newCentral Business District.BRINGING EUROPE TO CHINAIn other parts of China, the architecture of Europe is beingre-created in many residential developments. In Shanghaisuburbs, residents can live in buildings that look like they belongin England, Germany, Spain, Scandinavia, and even the CzechRepublic. Nanjing already has Balinese retreats and Italian villas.Hangzhou is home to China’s version of Venice and Zurich.The country’s most ambitious construction project, however, isthe Three Gorges Dam. When it is completed in 2011, by capacityit will be the world’s largest hydro-electric power station.For all of China’s development frenzy, however, Canadianfirms have largely been left on its periphery. A 2006 study by theAsia Pacific Foundation of Canada found that only 17 per centof Canadian companies have developed a formal strategy forresponding to China’s economic rise.While they understand the country’s importance, “mostcompanies are ill-prepared to respond to the challenges andBuilders' Digest Spring 2008 | 31


EYE ON THE WORLDA constructionworker erectingbamboo scaffoldingat a buildingconstruction site inHong Kongopportunities of an ascendant China,” Yuen Pau Woo,president and co-CEO of the foundation, said when the reportwas released.VHBA’s Simpson says that in British Columbia at least, “babysteps” are being taken to change that. At the request of CanadaWood, Simpson travelled to Shanghai in November 2006 toget Chinese builders and suppliers interested in wood frameconstruction, a building technique that is commonplace inCanada, but little used in China. That meeting resulted in theformation of the Builders/Suppliers Woodframe ConstructionAssociation China, the first of its kind in the country. CanadaWood now has two field offices in China.The opportunities for wood construction are great, Simpsonsays. The Chinese government has stipulated that at least fivemillion new homes are to be built each year over the nextdecade. Many of those units are being purchased by China’s300-million-and-growing middle class. Although most residentialconstruction is made of concrete, Simpson says CanadaWood is hoping to supply wood for interiors and roofing, aswell as projects that marry wood, metal and concrete. Theassociation, which represents the Canadian forest industryoverseas, already has several demonstration projects on theground in Shanghai and Guangzhou.Reese’s firm is forging ahead with its projects. It reacheda compromise with its Shanghai partners on the firstdevelopment: The firm is advising the Chinese, even as thecommunity is being constructed within a wall. The seconddevelopment hasn’t been built yet because the governmentis trying to slow economic growth in what some analysts warnis an overheated market. Still, Reese is upbeat about thepossibilities China affords.“China is changing very rapidly,” he says. “I find that every sixmonths it’s a different world.” |BD32 | Builders' Digest Spring 2008


Upcoming EventsToronto Construction Association2008 Members Day Wednesday, May 14, 2008TCA Golf Tournament Thursday, May 22, 2008The Club at Bond Head and Copper Creek Golf ClubTickets go on sale April 1, 2008Construct Canada 2008 Thursday, December 3-5, 2008TCA Christmas Lunch Friday, December 5, 2008Tickets go on sale October 1, 2008For further information, please contact: Mary Thorburn or Barbara Bryon • Tel: (416) 499-4000, Ext. 14/57Email: mthorburn@tcanetworks.com; bbryon@tcanetworks.com • www.tcanetworks.comYoung Construction Executives ClubYCEC Working Weekend Friday, June 6 – Sunday, June 8, 2008YCEC/Board of DirectorsInvitational Golf TournamentThursday, September 18, 2008For further information, please contact: Evelyn Kilcullen • Tel: (416) 499-4000, Ext. 18Email: ekilcullen@tcanetworks.com • www.tcanetworks.comThe Construction InstituteProgram: Leading Teams Thursday, April 3 – Saturday, April 5, 2008Course: Blueprint Reading & Estimating• Level 2Tuesday, April 8, 2008Seminar: LEED for Construction Tuesday, April 15, 2008Seminar: Construction Liens and Trusts April 24, 2008Course: Fundamentals of Construction May 2008Workshop: Bidding & Tendering June 2008Course: Risk Management Monday, September 15, 2008Course: Blueprint Reading & Estimating• Level 1Tuesday, September 16, 2008Seminar: LEED for Construction Thursday, September 18, 2008Course: Construction Law Wednesday, September 24, 2008Course: Planning and Scheduling Thursday, September 25, 2008For further information, please contact: Roxanne Drisdelle • Tel: (416) 499-4000, Ext. 15Email: rdrisdelle@tcanetworks.com • www.theconstructioninstitute.comBuilders' Digest Spring 2008 | 33


INDEX TO ADVERTISERSBelmont Rose Granite Corp......................16www.belmontrose.comBlaney McMurtry.......................................19www.blaney.comBothwell – Accurate Co. Limited..............21www.baroof.comCanwell Insurance& Financial Services..................................8www.canwell.caCassels Brock...............................................4www.casselsbrock.comThe Graff Company...................................17www.graffconcrete.comThe Guarantee Companyof North America.....................................34www.gcna.comHertz Equipment Rental Corporation.......13www.hertzequip.comHilti North America.....................................7www.ushilti.comGeo A. Kelson Company Limited..............19www.kelson.on.caNew Century Software Inc........................16www.newcentsoftware.comCONTRACT BONDSCanada’s leading“SPECIALTY” InsurerOntario Construction Secretariat ..............3www.iciconstruction.comPeri Formwork Systems Inc......................27www.peri.caPermacon.......................Outside Back Coverwww.permacon.caSprint Insight Inc.........................................8www.sprintinsight.comToromont Industries Ltd.............................9www.toromont.com34 | Builders' Digest Spring 2008We also offer:gcna.comVanbots Construction Corporation.......................................Inside Front Coverwww.vanbots.comWeirfoulds LLP..................Inside Back Coverwww.weirfoulds.com


“WeirFoulds has serviced ourcorporate, real estate, leasing,design-build, construction,consulting and other legal needsfor more than 35 years, as weexpanded from a single location to amulti-faceted complex of companieswith offices throughout the world.”Victor Smith, CEO, Ingenium Group Inc.,An Integrated Consulting and Design-Build Companygrew up with WeirFoulds.To find out more, call Glenn Ackerleyat 416.947.5008 or email him atackerley@weirfoulds.com.Protect your future. Gain a competitive advantage. WeirFoulds LLP.416.365.1110www.weirfoulds.com

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