Builders - Toronto Construction Association

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PRESIDENT'S messageJohn G. Mollenhauer, PresidentToronto Construction AssociationPastPresentFutureA LITTLE OVER A YEAR AGO, WE TALKED ABOUT THE DEEPENINGrecession reaching global economic crisis status.I remember portraying the economy at the timeas a “runaway freight train” and in my view, it was.Economists were optimistic that the federal government’sstimulus spending would have some tractionby late third quarter but the average consumer wasn’t buying it. In fact, the averageCanadian was still reeling from the stock market collapse and consumer confidencehad reached a 25-year low. Unemployment was rising, the dollar was dropping and ournational debt, which was already well north of $500 billion, looked like it was headedfor the stratosphere. Having said that, most of us had battened the hatches long beforeCanada had officially recorded its second consecutive negative GDP quarter. This waspresumably because we were determined to be better prepared than our Americanfriends, who were not only the first, but arguably the worst in a long line of casualties ofthe global economic meltdown.From a non residential construction perspective, the private sector had all but disappearedand although there were clearly no magic success prescriptions, it was prettyapparent that infrastructure spending would be our only lifeline and that we had to tapin to the public sector infrastructure procurement agencies or perish.SO HOW DID IT ALL TURN OUT?It turns out that the economists were bang on. By economists, I am not talking aboutpessimists like NYU’s Economics Professor, Nouriel Roubini, whom many credit withactually predicting the collapse in the first place. I am referring to folks like the chiefeconomists of the Schedule A banks who predicted that a slow but meaningful turnaround would begin late in the third quarter of 2009. And in the wake of all the doomand gloom in early 2009, that was a ballsy prediction. Even more surprising is that consumersnow believe it is time to turn our attention away from stimulus spending andfocus instead on our considerable national debt. That little jewel, incidentally, is basedon the results of a national poll released by Pollara Strategic Insights CEO MichaelMarzolini at the Annual Economic Outlook Conference that The Economic Club ofCanada hosted for about 1,400 surprised guests earlier this year.Sadly, construction practitioners are less optimistic. And for good reason. After all,our industry typically lags the economy by a considerable margin (8 to 18 monthsdepending on the size and scope of your average project). In the non residentialconstruction market, we were all anxiously awaiting the return of the private sectoras a viable buyer of construction services which obviously didn’t happen in 2009. InBuilders’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.tcaconnect.comPublisherEditorAssociate EditorSales ManagerSales ExecutivesContributing WritersProduction Team LeaderSenior Graphic Design SpecialistPublished by: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.comPresidentSenior Vice-PresidentBranch ManagerSince 1867TorontoConstructionAssociationKevin BrownRobert ThompsonJeanne FrondaAndrew BrooksSharon KomoskiNolan AckmanWalter NiekampCarol SimpsonPat JohnstonJosh PashkoAndrew BrooksGreg EnrightRoma IhnatowyczLiz KatynskiAdrienne N. WilsonJames T. MitchellRobert ThompsonNancie PrivéAll rights reserved. The contents of this publication may not bereproduced by any means, in whole or in part, without the priorwritten consent of the association. Published May 2010.Publication Mail Agreement #40787580Return undeliverable copies to:Toronto Construction Association70 Leek Crescent, Richmond Hill, ON L4B 1H1Phone: (416) 499-4000 • Fax: (416) 499-87526 | Builders' Digest Quarter 1 2010

PRESIDENT'S messageterms of industry health, small and midsizedcompanies that managed their cashflow rigorously, read their contracts alittle more carefully and adapted to thenew “infrastructure driven” economydid reasonably well at year end. And thefirms that “specialize” in infrastructurework, either because of their size or prerecessionexperience, did extraordinarilywell in 2009 and in some cases actuallyenjoyed banner years.SO WHAT ABOUT THE BALANCE OF2010 AND EARLY 2011?Obviously, interest rates aren’t sustainableat these ridiculously low rates and the federalgovernment is hardly bluffing aboutthe March 2011 infrastructure spendingdeadline. Theoretically, governmentsat every level would rather risk higherdeficits leading to higher interest rates,higher taxes, even escalating inflation,before they would risk being associatedin any way with sliding back into recession.On the other hand, Ottawa seemscommitted to the March 2011 deadlinedespite the fact that there is no evidencethat the private sector will re-enter themarket any time soon and we are stillwaiting for the Province to table theirproposed 10-year $60-billion infrastructureplan. Moreover, our unemploymentcatastrophe will inevitably get worsebefore it gets better. So are we at risk ofthe economy “double dipping”?According to the experts, the shortanswer is no — and I believe them. Oureconomy is going to be fine. The importantquestion for TCA members in myview is, when will we see the ICI privatesector return as a viable procurementsource? And will that happen before orafter March 31, 2011? Lenders tell us theyare willing to underwrite new commercialand industrial development projects butborrowers seem unable to meet higherborrowing thresholds. It isn’t just aboutsupply and demand economics anymoreso the answers don’t come easily,particularly for amateur economists likeme. What we do know is that we won’tbe returning to the unique prosperitywe enjoyed from 1994 until 2008. Weknow interest rates are on the rise, labourshortages are inevitable, competition willremain fierce, the Province will delaycommitting funding for the next phaseof the infrastructure deficit for at least ayear, the Federal stimulus spending willend on March 31, 2011, and the privatesector recovery will be slow.All things considered, I would have tosay that I am still very worried about theforeseeable future for the constructionindustry. Having said that, our forecastlast year was considerably worse and yetwe somehow managed to employ 1.14million Canadians, add $168 billion tothe GDP and manage and maintainnearly $5 trillion worth of buildings.Not bad during a global economic crisisof epic proportion. Maybe the next 12months won’t be so bad after all. |BDCauseEffectProgramsdesigned byindustryJob-readygraduatesGeorge Brown College programs aredesigned in partnership with industry toproduce job-ready graduates for industry.Partner with us now to connect with yourfuture construction professionals.Want to know more? Contact us today.416-415-5000 Ext. 3817georgebrown.ca/buildGBC_10009_Builder'sDigest_v1.indd 11/25/10 3:13:47 PMBuilders' Digest Quarter 1 2010 | 7

Cover StorySeriousGamesBy Andrew BrooksIs Toronto ready for the heavy lifting required to prepare thecity for the 2015 Pan Am Games? And what lessons can bedrawn from the 2010 Vancouver Winter Olympics?Photo Credit: Toronto 2015 Pan / Parapan American Games8 | Builders' Digest Quarter 1 2010

Cover StoryWHEN IT COMES TO STAGING AN EVENT LIKE THE PAN AMGames, being well prepared is thewatchword. Bidding to host the Gamestypically takes place as much as a decadein advance, and cities contending for theprivilege of hosting the event are expectedto have a plan in place that provides concretedetails on how they will do it.One of the biggest bonuses of winninga bid is the amount of infrastructureinvestment required. Existing sportingfacilities have to be upgraded, or builtfrom the ground up, at a cost of hundredsof millions of dollars.Last November, when Toronto wasawarded the right to host the 2015 PanAm Games and Parapan AmericanGames, the victory was hailed for all theusual reasons: prestige, a huge influx oftourism, and the chance for the localconstruction industry to get its hands onsome major construction work — projectsthat match in scale and scope a lotof the government-driven infrastructurework that is now sustaining the industrythrough tough economic times.The 2015 Pan Am Games will run July10 to 26, 2015, followed by the ParapanAmerican Games scheduled for August 7to 14. The scale of the events is impressive.The Games will actually be larger in somerespects than the 2010 Winter Olympicsthat took place in Vancouver in February.The number of sporting events will belarger, and 8,000 athletes are expected(10,000 including the Parapan AmericanGames), whereas 5,000 took part in theWinter Olympics. The event is expectedto draw around 250,000 tourists, and tocreate 15,000 jobs in construction, tourismand event management.Competition and training will takeplace in over 50 venues in 14 differentmunicipalities. The $700 milliondedicated to preparing for the Games willgo toward upgrading many facilities andbuilding new ones. New facilities includethe $1-billion Pan American Villagein the West Don Lands on Toronto’seastern waterfront, which will house 8,500athletes and officials, and a 15,000-seatstadium and 3,500-seat velodrome inHamilton. Other new venues includethe Canadian Sport Institute Ontario,the $170-million Pan American AquaticsCentre and two 10-lane, 50-metre pools.In addition, upgrades to the GTAMcCaigSuccess through teamwork.It takes more than just steel and concrete to build something great. It takesexperience, knowledge and most importantly, a great team of people.And teams must work together, even when it comes to individual activities.Because we all have the same end goal – success.Builders' Digest Quarter 1 2010 | 9

Cover StoryHassle-free?Protests, security measures and the sheerscale of the Games may make the eventhighly noticeable while it’s underway, butat least the work on venues beforehandisn’t likely to cause major disruption inToronto. Pan Am Village constructionis already underway, and most majorvenues in the downtown area will useexisting facilities. (Note: at press time, thevenues were all only “proposed.”)• Rogers Centre – opening and closingceremonies, baseball• Air Canada Centre – basketball• Ontario Place and Exhibition Place– fencing, gymnastics, karate, triathlon,handball and more•Metro Toronto Convention Centre –media and broadcast centre• Nathan Phillips Square – weightliftingMost of the new building and heavyupgrading work will be taking place insurrounding communities.Work on Games-related transit infrastructureis likely to be more disruptive,but probably no more so than transitprojects always are.transit system will improve existing linksand bring high-quality transit service toparts of the city that so far had little ornone at all. Notable among these will bethe Light Rail Transit (LRT) lines to beconstructed under the auspices of the“Transit City” expansion program.ALREADY IN TRAININGIs the Toronto construction industryready for the challenge? If the way theB.C. industry handled the Winter Olympicsis anything to go by, Toronto shouldbe more than ready. Manley McLachlan,president of the B.C. ConstructionAssociation (BCCA), notes that eventhough the B.C. industry was “on fire,”with little in the way of excess capacity,when Olympics work entered themarket, it was more than able to handlethe challenge. “Time has shown that thefacilities were completed on budget andon time,” he says. “In fact, they were upand running well in advance. The industry’sapproach to Olympics constructionwas very successful.”Construction firms in Toronto areeager for the work. According to JimDougan, President, Central and EasternCanada for PCL Constructors Inc., theindustry here has been well trained forPan Am Games projects by infrastructurework. “That work involves large-scalefacilities like hospitals and other bigvenues,” he says. “The scale of jobs likethat is very similar to what’s needed forthe Games. So yes, I think we have theskills and the capacity for it.”That capacity will be needed. Like theWinter Olympics, the Pan Am Gameshave the hardest deadline possible: aformal launch date that’s already beendetermined and simply can’t be moved.But here, too, current infrastructurework is giving construction companies theexperience they’ll need to get things doneefficiently — and fast. Michael Smith, VicePresident for Business Development atEllisDon Corp., notes that infrastructureprocurements are getting more rigorous,bringing them more in line with the terms10 | Builders' Digest Quarter 1 2010

Cover Storylikely to be imposed for Pan Am Gamesconstruction work.“These days the clients need the projectsdelivered with hard price, scheduleand quality guarantees,” Smith says. “Soit’s nothing new for us. And everythinghas to be done faster and faster. We findnow that the hole’s already being excavatedwhile we’re doing the design of themajor project elements.”Urgent and inflexible as the July 2015deadline may be, a lot of work will haveto be finished long before that. “Somefacilities have to be delivered a yearahead,” Smith says. “They have to be commissioned,and different organizationshave to have time to set up the interiorfacilities,” which tend to be complex.That’s why Smith and Dougan expecta fast-track design-build or design-buildfinanceapproach to be adopted, whereconstruction and design can go on concurrently.“We’re ready for the pace,” Smith says.“We’re finding now that jobs have to startand finish quicker. You have to get yourproject teams — partners, designers,contractors — brought together early soyou can get working as fast as possible.”Transit infrastructure for the Gamesis prominent on the Pan Am Gamesto-do list, but it’s also been a focal pointfor infrastructure funding, so a lot ofthe work is underway or soon will be.Still, that hasn’t stopped some observersfrom voicing concern at the slow start toconstruction on a vital rail link betweenUnion Station in downtown Torontoand the city’s international airport.Provincial officials had hoped to beginwork at the beginning of 2009. But thesigning of a contract with SNC Lavalinfor the project was still pending whenRoger Garland, Chair of the GamesOrganizing Committee Board of Directors,was asked about the delay at a mediaconference at the end of March. “Wemet with senior management from SNCLavalin,” Garland responded, “and theyare quite confident that they will meetthe deadline.”“ ”This is very positive for our industry...There’s a long-term legacy that’s being created— Michael Smith, Vice President for Business Development, EllisDonBuilders' Digest Quarter 1 2010 | 11

Cover StoryTHE RIGHT ATTITUDEThe biggest preparation may be a matterof attitude, according to McLachlan. Asnoted, the B.C. construction industry was“on fire” when Olympics projects cameon stream. (In fact things were so busythat the Olympics work barely caused aripple: it accounted for only $750-$900million out of a total of some $120 billionin major projects.) Where the Olympicshad a major impact was in generatingoptimism in the industry.“Some may equate investment in theWinter Olympics with the construction ofPan Am Games facilities,” he says. “Thesituation in the industry is somewhat differentnow from what it was in the lead-upto the Olympics. . . but if the industry inB.C. was on fire, it was the prospect of theWinter Olympics that got that fire going.”What’s different in Toronto’s case isthat the industry is hanging on thanks togovernment funded projects. That moneyhas been critical for survival, but what worriesSmith, Dougan and their colleagues isthe fact that the real sign of fundamental,long-term improvement — the re-entryof the private sector into the market in aserious way — still seems doubtful.But that concern hasn’t put a dentin industry optimism. The positiveattitude the Winter Olympics engenderedin their west-coast counterpartsis abundantly evident among Torontobuilders. “The Games are a good opportunity,”says Dougan. “As a company,we’re suited for this kind of work. We’relooking forward to it.”Smith agrees. “This is very positivefor our industry,” he says, “both inthe here and now and also well intothe future. There’s a long-term legacythat’s being created.”The timing’s good too. As infrastructurework winds down and governmentsgo back to belt-tightening, the Pan AmGames projects could serve as a perfecthangover cure. Building for the PanAm Games won’t likely begin for at leasta year, according to Dougan, and heforesees the main bulk of activity comingprobably around a year after that.“The hard stop for infrastructure fundingis March 2011,” McLachlan says. “Thatmeans that the upcoming work on thePan Am Games could come at the righttime to ease the construction industrythrough the slowdown in governmentfunding of infrastructure projects.”With that gradual start to building,and an even harder stop in June 2015,the window for Pan Am Games constructionis only going to get narrower as timepasses, something that Toronto constructioncompanies are only too aware of.“The biggest job right now is for everyoneto recognize that there’s a very hardfinish line,” says Dougan. “We need toget moving quickly: we can’t afford tolose time.” |BDPhoto Credit: Toronto 2015 Pan / Parapan American Games12 | Builders' Digest Quarter 1 2010

CONSTRUCTION PROFILEIN THE LIMELIGHTAll photos courtesy of EllisDonWith the raised profile of the industry, the hope is that moreyoung people will pick construction as a career, heading offa looming talent drain as older employees retireThe construction industry hasn’t always had a positiveimage, but industry leaders are more aware than ever ofthe importance of “selling” construction in the public eyeBy ROMA IHNATOWYCZFOR THOSE WORKING IN THE CONSTRUCTION TRADE,There is a lot to be proud of — from ahost of impressive building projects, completedon time and on budget, to the highlevel of professionalism found in bothmanagement and the trades.Outside the industry, however, it’s oftena different story. In fact, one could say thatthe construction industry suffers froman image problem, and consequentlyfails to get the respect and recognition itdeserves.“While we have seen a number ofmember firms getting recognized . . . it istrue that companies in the constructionindustry are not well understood by thepublic or the media,” explains MichaelAtkinson, president of the CanadianConstruction Association (CCA). “Thereis a tendency to equate anybody who says‘I’m in construction’ to home building orhome renovations. There is what I call the‘Mike Holmes effect.’ People don’t thinkmuch of contractors because of what theMike Holmes show is about.”For anyone who hasn’t yet seen theubiquitous Holmes on TV, his showhighlights renovation disasters by questionablecontractors, which the TVhero then comes in to repair. WhileBuilders' Digest Quarter 1 2010 | 13

CONSTRUCTION PROFILE“As an industry, I think we haven’t embraceda new direction. We haven’t effectively gone beyondthe ‘let’s get the lowest price, let’s cut the heart out ofthe numbers’ approach”All photos courtesy of EllisDon— Geoff Smith, President and CEO, EllisDon Corp.commercial construction is a far cryfrom the mom-and-pop operators whoseshoddy work is shown on the popularseries, the image, unfortunately, tends tostick across the board.Bad press, such as the current investigationsinto criminal activity in the Quebecconstruction industry, only add fuel to thefire, says Atkinson, as does the fact that“the only time a camera crew is down at aconstruction site is because there’s been asafety violation or accident.”There’s no question that constructionhas a poor image, Atkinson says. “Part ofthat is the media — they tend to depictcontractors as something of a shadybunch. And when something great happensin our industry, we sometimes don’tget the credit. If a new bridge or modernbuilding is opened, it is not the buildersthat are necessarily credited, but theowner or designer.”GROWING RECOGNITIONFortunately, it looks like the tide is turning.In recent years increasing numbersof construction companies and professionalsare being recognized for theirwork and their contributions to the community,whether in the form of an award,positive press coverage, or the inclusion oftheir company on one of the many “Top50” lists that highlight work well done.Ross Grieve, former CEO of PCL,received just such recognition this pastNovember, when he was honoured withthe “Outstanding CEO of the Year”award, sponsored by The Caldwell Partners,Deloitte and the National Post.Grieve represents the first professionalfrom the construction industry to begiven the award since it was established in1990, no small feat.“It was a wonderful surprise,” saysGrieve, who also in November steppeddown from his position and is now executivechairman of the PCL Board. “We’re aprivate company, so we’re not in the limelight.It’s nice to see a private companyfrom the construction industry win.”The award is certainly merited. SinceGrieve took over in 1997, PCL has tripledits annual billings volume, and its profitabilityhas remained strong. It has alsogarnered recognition for its HR practices14 | Builders' Digest Quarter 1 2010

CONSTRUCTION PROFILEConstruction is attracting increasing numbers ofwomen as a career choiceto view our industry as the industry ofchoice,” says Grieve. “There have beenlinks to governments as well, and participationin apprenticeship and other skilldevelopment programs. So there’s beenan enormous amount of effort.”Associations such as the CCA and theTCA have been in the thick of things andare seeing results. As Atkinson explains:“Construction associations across thecountry have been very successful in raisingthe image of the industry, in particularwith guidance counsellors. We are seeinga change. And the Canadian ApprenticeshipForum, for example, has been doingsome great work in elevating the prestigeof apprenticed trades.”Associations and other trade representativesneed to break the entrenchednegative image that still lingers in theminds of many students, as well as theirparents. The construction industry hasevolved, and it has become an enviablecareer choice that offers more freedom,and was acknowledged as one of the bestemployers to work for in Canada by FOR-TUNE magazine, says Grieve.While Grieve understands that the constructionindustry sometimes gets shortshrift when it comes to public recognition,in his opinion this is usually due tocircumstance rather than discrimination.For starters, many companies active inthe sector are privately owned, and thereforenot as transparent as larger publiclyowned corporations, which tend to getmore coverage in the press.And, like it or not, the industry just isn’tconsidered quite as ‘sexy’ as sectors likebanking or technology. For many people,it still suffers from a blue-collar image thatit can’t seem to shake off. “Our industryis a fabulous industry,” says Grieve, “butit doesn’t rank in most people’s minds asa sophisticated industry. It doesn’t havethe kind of glitter that other industrieshave, and that might be the reason forless coverage.”TARGETING SCHOOLSSteps are being taken to change thismisguided perception, starting in theschools. Trade associations and otherrepresentative groups are actively wooingyoung people — including women — toget them excited about construction as aviable career choice. They want to turnconstruction into a first, rather than last,career option. So they’re going into theschools to talk to students and highlightthe benefits that construction work brings,on the trade side or in management.“There are all sorts of initiativesthroughout Canada to try to raise theprofile and encourage younger peopleOur workers comewith 5 letters ofrecommendation…T.S.M.C.A.The Toronto Sheet Metal Contractors Association (TSMCA) is a not-forprofittrade association that represents contractors engaged in thebusiness of manufacturing, installing, servicing and maintaining sheetmetal work in industrial, commercial and institutional sectors.TSM members employ only certified sheet metal workers or registeredapprentices and utilize the most up-to-date equipment and processes,are well versed in every type of project and building requirement andhave a reliable and consistent labour pool to draw upon – saving youthe trouble of endless delays due to labour shortages. In addition,research of WSIB data by the Ontario Construction Secretariat reportedthat the unionized contractors in WSIB Rate Group 707 have a farsuperior record of safety performance when compared to theirnon-union counterparts.So if quality workmanship, proven experience, exceptional reliabilityand safety are important to you and your project, you owe it toyourself to utilize the services of a member of the Toronto Sheet MetalContractors Association.Call 905-886-9627 or visit www.tsmca.org today.See how you can put the power of experienced, reliable professionalsto work for you.TORONTOSHEET METALCONTRACTORSASSOCIATIONBuilders' Digest Quarter 1 2010 | 15

CONSTRUCTION PROFILEcreativity and money than many traditionaldesk jobs. “It’s all about breakingthe traditional stereotype that constructionis only for the big and brawny, thedumb and stupid. And that it’s only aboutrolling around in the dirt. That’s just notwhat construction is all about today,”Atkinson says.Awards such as the one that Grieverecently received certainly help. Themore that individuals and companiesin the construction sector gain outsiderecognition, the more attractive theindustry becomes to the world at large.“The award that I just received — which Ifeel is more for the company than myself— helps raise the profile,” notes Grieve.“We are recognized shoulder to shoulderwith all the other organizations that havereceived the award before us. We’re rightthere with them.”WELCOMING CHANGEImportant to remember in all of this isthat awards need to be earned, and thisrequires work and effort. While thereare those that argue that constructioncompanies are finally getting their duecredit after being overlooked for years,others say they are just coming into theirown in terms of earning this right. It begsthe question: are construction companiestoday being run better than they were inprevious decades?According to Geoff Smith, presidentand CEO of EllisDon Corp., his company’srecent accolades are indeed aresult of a concerted effort to bettermanage the company by adopting atotally different tactical approach. Forthat reason, EllisDon today is a very differentcompany than it was in the ’90s.“In the 1990s, in the recession andcoming out of the recession, EllisDondid not perform well,” says Smith, whosefather first started the company. “Ourreputation in the industry with clientsand with subcontractors was not wherewe wanted it to be. So while we didn’t say‘let’s go win a bunch of awards,’ we didrealize that we had to change the companydramatically.”Rather than focusing solely on satisfyingclient needs, senior management madethe unconventional decision to concentratefirst and foremost on its employees,which Smith calls its biggest asset. Happyemployees, he determined, wouldresult in satisfied clients. He was right.“We tell our clients and employees thatour employees are more important thanour clients, and most companies don’tdo that,” says Smith. “Even some of ourboard members think it’s a little wacky.People, Performance, Resources.These are PCL’s strengths.Whatever your construction needs,PCL is the right choice.PCL Constructors Canada Inc.2085 Hurontario Street, Suite 400Mississauga, ON L5A 4G1Phone: 905.276.7600Watch us Build at PCL.com16 | Builders' Digest Quarter 1 2010

CONSTRUCTION PROFILEBut the thinking is that in constructionwe are really a service industry andexpertise industry, and if you have greatemployees, then you have happy clients.One follows the other.”EllisDon made its employees shareholders(40 per cent is still retained bythe Smith family), provided them withmore decision-making powers withintheir areas of expertise, and started amore open policy of management, whereeverything from financial statements tobusiness plans are made accessible to allstaff. “We make the senior managementteam accountable to the employees, andwe do it very openly,” says Smith.Dramatic changes such as these havenot only helped EllisDon retain happyemployees — and as a consequencehappy clients — it also helped the contractorget recognized outside of theindustry. For two years straight, in 2007and 2008, EllisDon topped the “50 BestEmployers in Canada” list, compiled byReport on Business magazine and HewittAssociates. The company has made someother lists too, including “Canada’s 50Best Managed Companies,” sponsoredby Deloitte, CIBC Commercial Banking,Queen’s School of Business, and theNational Post. “We’re now a Platinummember of that, which means we’vebeen getting it for about five or six yearsrunning,” says Smith.For EllisDon, revolutionizing theway the company is run has paid off inspades. The company even launchedits own consulting arm — EllisDonConsulting — to share its expertise inbest practices, with firms in Canada andabroad.MOVING FORWARDAccording to Smith, the Canadian constructionindustry needs to embracechange if it wants to get recognizedbeyond its inner circle. Companies mustraise their level of professionalism tocompete with the well capitalized Europeanconstruction firms entering themarket, thanks to an infrastructure boomalready underway. In many cases, Canadianconstruction companies are stuckin an outmoded way of doing things,says Smith, and they need to evolve.“As an industry, I think we haven’tembraced a new direction. We haven’teffectively gone beyond the ‘let’s get thelowest price, let’s cut the heart out of thenumbers’ approach,” says Smith. “I alsothink we do a poor job as an industry ofcommunicating with the outside world,of getting involved in the community,helping with charitable efforts.”“If we’re going to get better as anindustry and service our clients better,and most importantly, if we’re going toattract the right people at universities,community colleges and high schools,we’ve got to raise our profile,” addsSmith. “It’s a terrific industry, but wedon’t publicize ourselves very well.”Smith acknowledges that the industrycontinues to suffer from a weak publicimage, and as a result often fails to attractthe best and the brightest coming out ofCanadian schools — the very people whocan help push businesses forward. “Wedon’t do a good enough job of tellingpeople how much fun this industry is towork for, and therefore the best peopledon’t come to us,” says Smith. It’s avicious cycle: without top talent, companiesdon’t reach their full potential or getpublic recognition.While Smith agrees that things areimproving, he strongly advocates formore funding to associations representingthe sector to help them boostthe industry’s profile, as well as bettercommunication with the general publicon the part of individual companies.“These construction entrepreneurshave to decide to move to another levelof communication and marketing, aswell as community involvement,” saysSmith. “We have to get better at that. Butthis is determined at the individual companylevel and so it has to be individualdecisions.”In the end, it’s fair to say that the Canadianconstruction sector has come along way over the years and is finally startingto get the recognition it deserves. Butwith continued hard work, an open attitudeto change, and a loud voice, therewill be far more awards and recognitionin the years ahead. |BDVernon Narrows - Twin Bridge Project416-752-2431www.amherstgroup.caBuilders' Digest Quarter 1 2010 | 17

Infrastructure Fundingvarious areas to various degrees. Albertawas still busy with non-infrastructureprojects. In Ontario, there’s been more ofan impact because of the downturn of themanufacturing and automotive sectors.They’ve taken a big hit so the stimulus isof much greater importance to Ontario.”According to the Infrastructure Canadawebsite, ISF was launched in Ontario inJune 2009. As of mid-December, therewere over 1,700 projects noted in theprovince. These included $250 millionin infrastructure renewals in Ottawa, anda new enclosed pedestrian bridge acrossHighway 401 for Oshawa and Pickering-Scarborough with $5 million federaldollars and matching provincial funding.There were over 500 new infrastructureprojects in Toronto covering roads,water, sewer upgrades, public transit,municipal buildings, community centresand facilities.Outstanding funding commitmentsin the GTA include $24 million for roadimprovements, $41 million for municipalbuildings and $56 million to improvewater and wastewater managementsystems. Other work in the GTA includes:• Up to $133 million for work on UnionStation;• Up to $333 million for a new SheppardEast Light Rail Transit Line;• $350 million to modernize andexpand Toronto Transit Commission(TTC) services;• $385 million for the GO Rail and BusTransit networks across the GTA; and• A total of $81,446,000 from the GasTax Fund for infrastructure projectsin Toronto in 2008-09.The ISF funding is being providedto provincial, territorial, municipaland community construction-readyinfrastructure projects. Its $4 billion willbe distributed from 2009 to 2011, witha focus largely on the rehabilitation ofexisting assets including water, wastewater,public transit, highways, roads, culture,parks, trails and municipal buildings. Itwill fund up to 50 per cent of eligible costsfor provincial and territorial projects,up to 33 per cent for municipal andnot-for-profit projects, and up to 25 percent for-profit sector projects. Projectsfunded must complete construction byMarch 31, 2011.FEAR FOR THE FUTURE?Overall, construction is still a very busyindustry in Canada, says Gritziotis. “Weare going through a renewal in the publicand private sectors. We’ve come out prettygood.” The home renovation tax credithas also stimulated things in the industry,he says.“In the fast or in the slow lane, publicinfrastructure work helps us to maintainour capacity. Traditionally, construction isalways looking for people when the workshows up. This stimulus is helping us tobridge the gap.”Government has traditionally beeninvolved in infrastructure funding, but therecent funding has accelerated projectsand packed a lot in through March 2011.And of course the industry still includesa lot of non-stimulus-related work.“Our concern is that in 2010, whencommodity prices increase and there’spressure on the public and private sectorsto respond to increased demand in theindustry, we may have labour shortages,”Gritziotis says. Still, he says, “It’s good tokeep our industry busy. It ensures we havea workforce and are prepared for thefuture. We also need to ensure we havemobile capacity — that we can take theworkforce to the projects as required.”If people are assuming that the federalstimulus infrastructure dollars arenot flowing quickly enough, MichaelAtkinson, President, Canadian ConstructionAssociation (CCA) says they need toconsider the process involved.“The federal government’s role is notto flow funds but to set up the structure,and once that’s approved the governmenthas done its bit,” says Atkinson. “Thefederal government pays its share whenit’s due, once the municipality has gotthings rolling and the bills come in. Ifyou think the funds aren’t flowing, youdon’t understand how it works. Theonus is on the municipality. Before wepoint fingers, we need to understandeveryone’s responsibilities in the process.”In some parts of the country, things aregoing at a good pace, and in others, theyare going more slowly, so it isn’t easy tomake wide generalizations about theentire situation due to many contributingfactors, he says.One generalization that does holdwater is the fact that the March 31, 2011,deadline is the proverbial hard stop. Allinfrastructure funding will simply end onthat date, even for projects that are stillunderway. This has serious implicationsthat contractors should consider beforebidding on projects: these are spelled outin more detail at the CCA website.THE PIECES OF THE PIEThere’s some general confusion in themedia about infrastructure funding. It’snot all one big program. The federalgovernment is currently funding infrastructurethrough a number of programs.The Gas Tax Fund provides a share ofthe 10-cent federal excise tax on gasolineto municipalities for infrastructure. TheBuilding Canada Plan was launched in2007 and includes a number of programs:the Building Canada Fund - $8.8 billionover seven years for large municipal andprovincial projects;• the Equal Per Jurisdiction Fund - $25million per year for seven years toeach province and territory for smallerjurisdiction infrastructure needs;Builders' Digest Quarter 1 2010 | 19

TCA AwardsTop of the TradeMichael O’Malley, winner of the 2009 Donald P. Giffin Construction IndustryAchievement Award, knows construction inside out — hardly surprising forsomeone who started on barns and worked his way up to international airportsBy ROMA IHNATOWYCZGROWING UP ON A FARM MAY SEEM LIKE AN UNLIKELYstart to an award-winning career inconstruction, but it was in the heartof Ontario farm country that MichaelO’Malley, winner of the Donald P. GiffinConstruction Industry AchievementAward, first took a hammer in hand andstarted building.The young O’Malley helped buildmilk-houses and barns for neighbours inthe small rural village of Teeswater, wherehis parents farmed. He took a liking to thework, and in no time his natural curiositygot the better of him.“Some of these projects were a bittricky, particularly when you were puttingup beams in barns. So I decided to studycivil engineering so I could better understandwhat was required for buildingthese projects. That’s how I got startedin construction,” says the 67-year-oldO’Malley.Since then, the projects that O’Malleyhas managed are a far cry from the simplebarns he cut his teeth on. Whether thesoaring Canada Trust Tower in the heartof Toronto’s financial district, or the firstphase of the multibillion-dollar expansionat Pearson International Airport,O’Malley has supervised some of the mostimpressive construction undertakings theGTA has ever seen.TEAMWORK KEYO’Malley handled these and other taskswith his usual blend of professionalism,skill and expertise. However, he creditshis success to more than just his intricateknowledge of the technical side ofconstruction. It is his ability to buildMichael O’Malley and Lee Baker at the awards ceremonyeffective teams, he says, that really counts,because working as a unified team is whatbrings a complex construction project toits successful and timely completion.“Team planning has been my greatestskill,” notes O’Malley, who as the eldest of12 children learned of the importance ofteamwork at an early age. “I am fortunateenough to be able to understand theprocess and make it work with all partiesinvolved… I am able to bring stakeholderstogether, discuss with them what we wantBuilders' Digest Quarter 1 2010 | 21

TCA Awardsto achieve and get their input. If they arepart of the preparation of the plan, thentheir commitment to it is so great thatthey make sure it happens.”This skill was in place when O’Malleywas midway into the first phase of theexpansion of Toronto’s Pearson Internationalairport. It was Sept. 11, 2001, andthe world experienced the unimaginable:the terrorist attacks on the World TradeCenter in New York.Suddenly, airport security was toppriority and the terminal’s original designbecame obsolete overnight. It neededto be completely reworked to buildan airport that could better withstandsecurity threats. Among other things,curbside drop-off and co-mingling areashad to be eliminated and explosion-proofglass introduced. “Transport Canadarefused to open the airport if we hadcontinued on with the original designplan,” says O’Malley. “The project had togo through extensive revisions. But wehad to get it done, and we had to keepeverybody happy.”That’s just what O’Malley and his teamdid, and this remarkable feat helpedearn him the recognition of Person ofthe Year by the Canadian ConstructionAssociation in 2002.AT THE BEGINNINGO’Malley’s career in the big leagues ofconstruction began soon after graduatingfrom the University of Western Ontario.He joined Ellis Don in 1967, where heworked for 11 years, and then he movedto PCL, initially in Edmonton, then inDenver, Colorado, and finally ending upin Ontario, where he managed PCL constructionprojects until retiring in 2005.In the course of his 38-year career,O’Malley has seen the constructionindustry in Ontario grow exponentially.While he says the fundamentals of buildinghaven’t changed much, everything elsecertainly has. “When I first started, wehad a Telex machine that printed onekey at a time. Now, it’s 70 emails a day.And everyone wants everything ‘now,’”he laughs.Not that modern technology hassimplified things: “Years ago I could doa $450-million job and have eight filingcabinets. Today I have 80. That’s 10 timesthe amount of paper.”Paperwork aside, this consummateprofessional can’t seem to leave his workbehind. Although retired, O’Malleyis still actively involved in the trade,regularly teaching courses at GeorgeBrown College, the University of Torontoand PCL. He is also called upon by RossGrieve, formerly CEO of PCL and nowexecutive chairman of the board, tomanage particularly challenging projects,like those that have hit a stumbling blockand need the expertise of an old pro. Mostrecently, O’Malley completed the finalstage of construction on the $352-millionMGCS New Data Centre in Guelph.It is O’Malley’s reputation for rising upto seemingly insurmountable challengesthat continues to keep him in highdemand. While his family would likehim to relax at his roomy house up inbeautiful Huntsville, spending time withhis grandchildren, his wife likens him toa cowboy who’s always itching to get backin the saddle.“It’s my passion,” says O’Malley simply.“It’s my life.” |BDCONTACT USGiffin Sheet Metals LimitedToronto, OntarioPh: 416-781-6166 Fax: 416-781-9977Email: sales@giffincanada.comwww.giffincanada.com22 | Builders' Digest Quarter 1 2010Giffin is a manufacturerand contractor of:• air movement/handling equipment• automotive paint finishing systems• breeching• custom sheet metal fabrication• dryers• ductwork• dust control systems• HVAC systems• light plate• on-site service/maintenance• pipe• project management• regenerative thermal oxidizers• stacks• storage vessels• structural steel• tanks• weldments in all types of metalsincluding: galvanized, aluminized,carbon and stainless steels.Over 60 years experience servicingindustries including: the automotive,power sector, water & wastewatertreatment, mining, textile & food.ISO 9001:2008 CertifiedCWB W47.1 Certified100,000 square feet Manufacturingfacility, complete with 30 tonStrippit, CNC Angle Line, HighDefinition Plasma, 230 tonautomated brakesFunny. This bellsounds a lotlike the one inSchindler elevators.It says we’re at your service. For new elevators andescalators, upgrades, emergency repairs, scheduledmaintenance. Ring us – what can we do for you today?Performance on every level.Schindler Elevator Corporation40 Cowdray CourtScarborough, ON M1S 1A1Phone: 416-332-8280Fax: 416-332-8276www.ca.schindler.com

TCA AwardsThe Winners’ CircleWe present the Best of the Best for 2009By ROMA IHNATOWYCZPROJECT ACHIEVEMENT AWARDSLarge CategoryPCL Constructors: Telus Centre for Performanceand Learning – Phase IIIAs construction managers on this $49-millionproject at Toronto’s Royal Conservatoryof Music, the PCL team providedexceptional leadership, commitment toquality, and meticulous planning andscheduling. Work included fitting out ofthe shell spaces that had been completedduring earlier phases and completing thespectacular new Koerner Concert Hall.Medium CategoryVANBOTS d/o Carillion: The Allstream CentreA high level of teamwork, leadershipand professionalism was required inbuilding a world-class venue out of the160,000-square-foot Automotive Centreat the Canadian National Exhibition. TheAllstream Centre will be the first LEEDSilver conference centre in Canada andwill house a 3,000-seat ballroom and 20conference rooms.Small CategoryKenaidan Contracting: Ireland ParkIreland Park, which honours Irish immigrantsfleeing the Famine of 1847, wasan extraordinary undertaking due tothe project’s historical significance andits magnitude. It incorporates five giantformer grain silos, 14 piers and stonemasonry monuments with Irish BlueLimestone. Kenaidan provided constructionmanagement, successfully addressingmany challenges.Kenaidan’s workat Ireland ParkOUTSTANDING SAFETY PERFORMANCE AWARDGreenspoon Specialty Contracting ULCA specialist in the dangerous business ofdemolition, Greenspoon Specialty Contractingwas recognized for raising the barin safety records and standards. Greenspoonis committed to the three key directivesin its ‘Safety’ logo — responsibility,production and quality – and remainsactive in Construction Safety Associationof Ontario and other groups.TRADE CONTRACTOR AWARDOnyx Mechanical Ltd.Founded on 60 years of mechanicalexperience, Onyx Mechanical providesclients with creative thinking combinedwith proven skills and quality workmanship.It has built a solid reputationaround communication, co-operationand teamwork while delivering mechanicalconstruction services to the ICI sectorin Southern Ontario.TCA DISTINGUISHED VOLUNTEER AWARDCharles Lau, Cohos EvamyCharles Lau, anarchitect withCohos Evamy,was recognizedfor his outstandingserviceto the TCA. Lauhas been volunteeringforthe associationsince 2001. Hehas served as aboard memberon the YoungCharles Lau,TCA DistinguishedVolunteer for 2009ConstructionExecutive Club(YCEC) commi t t e e a n dassisted withpromoting the design industry side toyouths as part of the TCA’s SpeakersBureau. Lau has also participated inFuture Build shows and is currentlyactive in the Careers in ConstructionCommittee.Builders' Digest Quarter 1 2010 | 23

A DV E RTO R I A LWinners of the TCA “Trade Contractors Award”The Onyx Mechanical team providesmechanical construction services for theICI sector of Southern Ontario and hasover 68 years of combined experience inthe plumbing and HVAC industry. PartnersChris Nielsen, John E. McKinnon and BryonBackus have built a first-rate reputationin the industry and have worked withindustry leaders such as GovenBrown, PCLConstructors, and Century Group.“Our biggest asset is our reputation,” Chrissays, “but it takes a significant effort byeveryone in the company to maintain andgrow that reputation.”That reputation is due, in no small part,to the company’s mission to exceed itsclients’ expectations. Onyx Mechanicaldoes this by building and maintaininglong-term relationships with its clients,ensuring satisfaction through unparalleledcommunications and teamwork.“When we commit to something, we workon schedule, on budget, and we don’t‘nickel-and-dime’ everything that comesup,” says Chris.One example of Onyx Mechanical’s seriouscommitment to its work is the company’ssupport of LEED construction.“We fully support LEED constructionand enjoy participating in these types ofprojects,” says Chris. “We believe that wehave a responsibility to future generations toparticipate in and encourage environmentallysustainable projects.” John admits that thevalue and effectiveness required by a LEEDproject comes at a premium, but says that“Onyx is there to assist the entire projectteam in finding the balance between fiscaland social responsibility.”The company has also devoted aconsiderable amount of time and moneyin the administrative area of its business.With state-of-the-art computers, IT servers,in-house plotting machines, specializedestimating, and accounting and projectmanagement software, Onyx has solidlyinvested in the office infrastructure.“There are companies many times our sizethat have not invested a fraction of what wehave to build the foundation for our company- a commitment that proves to our clientsthat Onyx Mechanical is prepared to standout from the pack,” says Chris. “If you wantto make a difference you have to be willingto contribute, to be a part of something andleave your mark for those who follow to seewhat you could achieve,” state the threepartners. “Onyx is our achievement, ourpride and our future.”Onyx Mechanical Ltd.214 Wilkinson RoadBrampton ON L6T 4M4Onyx Mechanical’s recent projects in thecommercial sector include:• Toronto Eaton’s Centre NorthFood Court• Milton Arts & Entertainment Centrethe Bradford Library• Square One CRU• Lester Block HamiltonPhone: 905-866-6699Fax: 905-866-6690Website: www.onyxmech.com

Harmonized Sales TaxTHE HSTARRIVESBuilding in Toronto could actually get a boost from the HSTBy Kelly ParkerTaxes are never a popular topic — but constructioncompanies should do their homework now if theywant to avoid falling foul of the new HST during thetransition periodONTARIO WILL HARMONIZE ITS PROVINCIAL SALES TAX (PST) WITH THE FIVE PER CENT GOODS AND SERVICES TAX (GST) TOcreate a single, value-added Harmonized Sales Tax (HST) effective July 1, 2010.According to Builders’ Digest sources, while the tax itself should prove beneficial for theToronto construction industry, the transition could present a challenge.The new HST will use essentially the same rules and tax base as the GST, meaningin many respects, it might simply be treated as a GST increase from five to 13 per cent.On the other hand, such a broad generalization might be a mistake, leaving you caughtflat-footed as a result of some of the nuances of the tax, and — worst case, apart fromCanada Revenue Agency issues, of course — even costing your firm contracts.Generally speaking, the industry can expect good things as a result of the new HST.In fact, Brian Wurts, Senior Manager, Corporate Tax at PricewaterhouseCoopers,feels that sector will be “one of the huge beneficiaries of the reform.” Currently, for26 | Builders' Digest Quarter 1 2010

Harmonized Sales TaxThe CCA recommends the following approach for transitional bids:DO NOT HAVE GST OR HST INCLUDED IN BID PRICESIn all cases, bidders should be told to submit bid prices exclusive of any Value Added Taxes, (i.e., GST or HST), as is the currentrecommended industry practice.DO NOT ASK BIDDERS TO IDENTIFY THE AMOUNT OF GST OR HST THAT APPLIES TO THEIR BID PRICESome Bid Forms, including CCDC, ask bidders to indicate the amount of GST that applies to their bid price. For transitionalprojects this could lead to confusion, especially given the different timing rules that apply to progress payments and holdbacks.HAVE CLEAR INSTRUCTIONS IN THE BID DOCUMENTS DIRECTING BIDDERS TO BID BASED UPON THETRANSITION TO HST OCCURRING AS ANNOUNCEDThis eliminates the need to seek a credit since any cost savings arising from the move away from a PST to the HST will have beenfactored into the bid prices as part of the normal competitive bid process. Should the transition not occur, the Contractor wouldthen be entitled under the CCDC contract language to recover the additional costs it incurred due to the transition to the harmonizedHST and the elimination of the PST not occurring as announced. This option is preferred by CCA since it avoids having todeal with credits for the elimination of the PST and assumes the transition will occur. This would also appear to be preferred bythose that read the provisions in GC 10.1.1 in CCDC standard contracts as intending that tax changes announced or known tobidders prior to the time of bid closing are in fact taxes that are “in effect at the time of bid closing,” even if not applicable untila future date.(Courtesy: CCA)example, there is a substantial amountof retail sales tax built into the cost of allnon-residential construction in the formof the eight per cent RST on buildingmaterials. “Under the HST,” Wurts says, “thattax is replaced with the fully recoverableto the contractor, and similarly, althoughhis charge to the developer is taxable at 13per cent, the developer can fully recover it.So, in effect, all of the tax that is currentlylevied gets washed out, and all of the tax thatreplaces it is recoverable for everybody, so it’sdefinitely a win-win situation.”The benefits kick in, of course, once thetransition has been completed and the taxenvironment becomes normalized again.The rub comes between now and thenduring the transition, and on that front,some feel the government has been slow indispensing information given the relativelyshort deadline. “Are they prepared in tryingto come out with clear legislation, cleartransitional rules and educating everybody, sothat as of July 1, we all know what’s going on,”asks Joel Baker, Partner at SBLR CharteredAccountants. “Personally, I’d say not. As anaccountant, I haven’t seen a lot about thesetransitional rules and the changes. I’m beingasked questions about this stuff, and I haven’tgot the answers [from the government] yet.It’s complicated stuff, but the fact is, it’s going“It’s complicated stuff, but the fact is, it’s going tocome into effect on a specific date, and we’ve got to dealwith it”CONTRACT BONDS— Joel Baker, Partner, SBLR Chartered AccountantsCanada’s leading“SPECIALTY” InsurerWe also offer:gcna.comBuilders' Digest Quarter 1 2010 | 27

Harmonized Sales Taxto come into effect on a specific date, andwe’ve got to deal with it.”Deal with it the industry must, and onekey area needing attention is contractswhere work will straddle July 1, becausethe GST would be applied before thatdate, and the HST after. It’s crucial,says Michael Atkinson, President of theCanadian Construction Association(CCA), that the tendering firm makessure its instructions to bidders are clearas to how you are going to treat the taxsituation. “Don’t assume anything,”he says. “Get a very clear statementfrom the calling authority, because thelast thing you want (as an owner) isa situation in which you get differentinterpretations from bidders, so thatyou get apples and oranges comingin, making it very difficult for them tomake an appropriate evaluation.”TAX TECHWurts emphasizes that contractors needto make sure that their bids and thecontracts they sign properly reflect howthe tax will work at the time they’ll beperforming the services. “The RST willno longer be part of your cost base — infavour of the recoverable HST — soyou’ll be able to bid a lower price,” heexplains. “That said, if you’re submittinga bid, the HST will be added to the finalprice, so you’ve got to think through theimpact on your net pricing, and the taxesthat are going to be charged throughto the customer, and make sure that’sproperly reflected.”Important Dates:May 1, 2010: Suppliers will have to collect any applicable HST on amounts that arepaid or payable on or after May 1, 2010, for goods or services delivered or providedon or after July 1, 2010.July 1, 2010: HST becomes fully implemented in Ontario. Goods or services receivedafter this date will generally be subject to HST and not PST.October 31, 2010: All outstanding PST becomes payable under the transition rulesto facilitate the wind-down of the PST regime.Part of the challenge is in bringinginternal systems up to speed for the transition,and Wurts feels that many firmsare wrongly looking at implementingthe HST as if it were the same as a simpletax increase. “There are a lot of systemsthat businesses will have to look at,” hesays, “including making changes to theirIT systems to accommodate the HST.Anything where you have customerfacingsystems so that invoices going outwill reflect the proper amount of tax.Internally, accounting systems will needto be changed as well.”Staff training is going to be imperative.In accounts receivable, staff will obviouslyneed to be up to speed on differing taxeson some services, but Wurts predictsthat firms will be amazed at how manycustomers will question the HST eventhough it will have already been in thenews for so long, and staff will have to beprepared to explain that. The accountspayable staff will need to be able tobreak out the HST in recording thecost amount, and using the wrong taxrate could cause big problems. “They’ll• Soil Stabilization• Water Cut Off• Void Filling• Cement Grouting• Chemical Groutingmultiurethanes.com1-800-663-6633have to be trained up and ready to go,”says Wurts. “Sometimes they might bedealing with something that is beingimported from the U.S., and they’ll haveto understand that the tax wouldn’tapply in that case, so the same formulacan’t be applied, either.”There will also be a little give andtake on the supply side. “Under the newsystem, the current RST will be removedfrom the suppliers’ cost,” explains Wurts,“and it will be important for businessesalong the chain to be able to press theirsuppliers to pass through the savings.That will work both ways, becausecontractors will also be facing pressurefrom their customers who will be sayingthey want to have those savings from theremoval of the RST passed on to them.”Information will equal power instaying ahead of the learning curve overthe months of transition. “If you’re upto speed, it doesn’t necessarily meanthat your customer will be,” notesWurts, “so explaining this to them andhelping them to be educated will be key.Misinformation or lack of informationcan cause heartache for a lot of people.”“Keep it simple, especially in thetransition,” advises Atkinson. “There isthis overstatement of fear or concernthat I’m hearing from some buyers ofconstruction, concerned that they’regoing to be paying for PST-embeddedcosts in contracts where they shouldn’tbe. I find that sort of ‘Y2K-ish.’ Setup your instructions to bidders toemphasize that the bid needs to be ina lump-sum or fixed-price, and thatbecause the HST is coming July 1, itshould be bid accordingly — sharpenyour pencils!” |BD28 | Builders' Digest Quarter 1 2010

Construct CanadaSigns of aCOMEBACK?Is the recessionreally ending? Atthis year’s ConstructCanada mega-event,signs of optimismweren’t hard to findBY Andrew BrooksWHAT CAN YOU GET OUT OF A TRADE SHOW? MAKINGyour way from booth to booth, you canget a good idea of the types of businessesthat drive market activity in your field. Youcan get a handle on new products, hearthe sales pitches and make new contactswhile renewing ties with existing ones. Ifyou make good use of your time, you cannetwork with your peers and get a feel forwhat the most important industry trendsare, while showing off your organization’scapabilities to potential customers andsizing up what suppliers and businesspartners have to offer.If there’s a conference taking placein parallel, the opportunities are thatmuch greater. You can learn aboutindustry trends, new products, newways to do business, emerging markets— and come face-to-face with industryleaders, while again networking withexisting and new contacts.If the event was Construct Canada2009, which featured a full track ofseminars, presentations and panels, andwas staged together with four closelyassociated industry events, you not onlygot a full package of opportunities likethose enumerated above. You were alsovery likely to come away with a feeling thatthe Canadian construction industry is inan optimistic mood, ready to bounce backfrom the worst economic slump since theGreat Depression.“I think people really felt hopeful,”says Laura Aaron, Senior Directorof MMPI Canada, producers of theShowcasing a new productThe show floorBuilders' Digest Quarter 1 2010 | 29

Construct Canada“ ”There’s been a huge amount of innovationaround high-performance and sustainable productsextravaganza, which has become themainstay event for Canada’s constructionindustry. “Last year there was a lotof trepidation about the year aheadbecause of the economy. This year wasmore optimistic. We felt a phenomenalenergy, a really positive vibe.”That positive vibe was reflected inthe attendance. When Builders’ Digestspoke with Aaron, MMPI Canada wasstill tabulating show data and firing outsurveys to attendees, but Aaron was ableto tell us that attendance this year was atleast the same as and likely a bit higherthan — the figure for 2008, which was thehighest ever.“We were expecting great numbers,”Aaron says. The full total of 1,050 boothswere sold out well before the show.Other landmark numbers included some450 speakers, 200 presentations… andhundreds of new products.There are always new products. But— Laura Aaronin the context of economic recessionthe release of a new product indicatesconfidence on the part of the manufacturerthat there will be buyers, that theeconomy will be strong enough to repaythe money invested in research, development,manufacturing and marketing.“There’s been a huge amount ofinnovation around high-performanceand sustainable products,” Aaron says.“It’s a growing industry, but it’s alsopretty new in terms of what the productsare trying to accomplish. We find thatpeople are trying to focus more andmore on that.”At a special Precast Concrete seminarpresented as part of the Concrete Canadaevent, Angie Luis of Essroc Canadaintroduced the latest advancementsin photocatalytic cement which, whenexposed to sunlight, cleans itself througha process that accelerates the decompositionof pollutants. This prevents theformation of stains and even reducesairborne pollutants around the structure.Sylentmite showed off its new powderedmixture that when mixed with coldwater can break up rock or concrete insituations where explosives are too risky.Terrafix Geosynthetics showcased a rangeof new offerings, including the GlasGridpavement reinforcement system, a new oiland grit separator and a new stormwaterfiltration system.Magnus Chemicals, fresh from itsmerger with CETEQ, introduced theMagcare 300 multi-purpose cleaner.“We’ve been exceptionally busy,” saidJim Goldsbrough, Manager, BusinessDevelopment for the aerospace andindustrial divisions of Magnus. “There’sbeen a lot of traffic at our booth.”Goldsbrough feels that the economy isimproving slowly — despite the occasionalstutter — and he’s reassured bythe fact that some companies he knowsof have now moved back to a full five-daywork week after a long period where theyhad cut back to four days to save moneyand wait out the storm.OVERALL OUTLOOK: POSITIVEGiven the broad range of types of businessinvolved in construction, it’s not surprisingthat there was a variety of opinions onA potential customer? Business partner? Supplier? Whatever the answer, newcontacts are one of the main reasons to attend an event like Construct Canada30 | Builders' Digest Quarter 1 2010

Construct CanadaMeetings with international delegations enabled attendees to broaden their horizonsthe economic situation. Builders’ Digestconducted an informal poll of the boothson the trade show floor, and found thatwhile consensus opinion agreed that theeconomy remains sluggish, the overallnote was one of optimism, with a fewvoices saying business is as good as it’sever been.“It didn’t slow down at all this year,”said Giovanni Ciancone, Ontario SalesManager for Granicor Inc., a Quebecbasedfirm that quarries and processeshigh-quality granite. “In fact we’ve hadmore business. A big part of that isthe infrastructure work that is gettingunderway here in Toronto, like the workon the waterfront.” Granicor is currentlyworking on nine jobs that have issuedspecifications for raw materials, withanother four or five in the hopper.“Show traffic is good,” said Colin Mark,a Safety Product Specialist for 3M Canada.“There’s a lot of interest. The third shifthasn’t been brought back for a lot of sitesyet, but they’re coming back.” Mark notesthat safety products for construction sitesprovide a quick and accurate barometerof activity in the field: “when a customerorders three boxes of earplugs instead ofone, you know activity’s up, at least on oneor two sites.”“We’re hoping for the infrastructurework to start up next year,” said StephenParkes, lab manager for St. Mary’sCement and Ready Mix. “So far thingshaven’t started to turn around for us.”“There is good activity in some areas,”said Ken Feinstein, Marketing Managerfor roofing specialists Flynn Canada Ltd.“That’s especially true in Toronto, whereactivity is still robust.”“It’s not as good as last year,” saidMichael Holleran, Engineering Manager,Western Canada and Ontario for CanamCanada, which fabricates steel joists,girders, steel decks and high-performancebuilding systems.“We’re very busy,” said Mike Noble,Vice President of Business Developmentfor Green Edge Products, a wholesaledistributor of energy efficiencyproducts that specializes in solar waterheating, solar photovoltaic and windenergy. Noble says the company nowhas a network of 150 dealers, and that itsGlenbarra Energy affiliate has a full bookof projects. “In fact we’re finding it hardto find enough qualified installers tomeet demand.”“It’s a recession-proof business,” saidJohn Wills, Director of the Centre forConstruction & Engineering Technologiesat George Brown College. “There’sBuilders' Digest Quarter 1 2010 | 31

Construct CanadaOne of the product knowledge presentations at Construct CanadaSeminars were well attended, as alwaysgoing to be a skills shortage in the nextfew years as older people retire from theconstruction industry, and that meansthat on the education side the demand isup.” The program has had to turn awayinterested students simply due to lack ofspace in its current facilities, but Wills andhis colleagues are looking forward to thenew GBC campus that is part of Toronto’swaterfront infrastructure renewal.SPEAKING UPAaron told Builders’ Digest that amongthe multiple seminar tracks, standoutsincluded presentations on geothermaland solar heating, which were also bigdraws last year. “People are finding moreand more that these might be viableoptions for them,” she says.She also cites seminars on energyquality that looked at energy sources forbuildings — green and otherwise — andhow to improve quality. A related topicthat also proved popular was the “BestPractices for Energy Management”seminar on cost savings and energysavings for buildings. Talks on greenbuildings and Toronto’s new green roofbylaw also drew crowds.After introducing the concept of theMaster Speakers series last year, showorganizers developed the concept thisyear with two special sessions: one focusingon professional development and thecoming manpower crunch that Willsanticipates, and the other focusing on theidea of a “Green Ribbon” redevelopmentof Toronto’s Gardiner Expressway. Theproposal for a seven-kilometre green rooffor one of Toronto’s major eyesores wasdiscussed by a blue-ribbon panel of sixexperts including former mayor DavidCrombie, after opening remarks from theDanish Ambassador to Canada. “They’revery involved with green building,” Aaronsays. “Denmark is light years ahead ofNorth America on this.”Two international round tables — onarchitecture and interior design respectively— enhanced attendees’ opportunityto get the big picture after drilling downinto specifics in the seminars. Each roundtable featured an international panel offive experts.Aaron said that organizers had a“phenomenal” number of booth renewalsfor next year right on the spot. Attendeeshave responded similarly, indicating thatthey’ll be back next year, and suppliersand construction companies alike appreciatedthe forward-looking orientation ofthe event.“We provided a phenomenal close tothe year,” she says. “We can start the newyear on a high note.” |BD32 | Builders' Digest Quarter 1 2010

Toronto Construction AssociationTCA’s Members Day XVIInformation sessions, networking, BBQ lunch/continentalbreakfast. Keynote Speaker: George Smitherman (FormerOntario Minister of Energy and Infrastructure, and nowmayoral candidate for Toronto)CCA/CCDC Documents Presentation"NO SEAL, NO DEAL"Eric Lee, Secretary to CCA Documents Committee will providean overview of Standard Construction DocumentsWednesday, May 12, 2010Location: TCAFree (TCA members only)Thursday, May 13, 2010Location TCA 8:00 a.m.TCA Members onlyUpcoming EventsThursday, May 20, 2010Location: Copper Creek & Eagles Nest Golf ClubGolf Classic, Copper Creek & Eagles Nest Golf ClubFee: TCA Members $255, non-members - $355Tournament Sold OutWednesday, December 1 – Friday, December 3 ,2010Construct Canada 2010Location: Metro Convention CentreFriday, December 3, 2010TCA Christmas LunchLocation: Metro Convention CentreTickets on sale October 1, 2010Saturday, February 11, 2012007 Diamond Casino GalaLiberty Grand Entertainment ComplexFor further information please contact Mary Thorburn or Mary McBride. Tel: 416-499-4000, Ext. 114/104 •Fax: 416-499-8752 • Email: mthorburn@tcaconnect.com or mmcbride@tcaconnect.comToronto Construction Association, 70 Leek Crescent, Richmond Hill, ON L4B 1H1Young Construction Executives ClubPub NightThursday, June 17, 2010Miller Tavern • 6:00 p.m.YCEC Board of Directors Invitational Golf TournamentThursday, September 16, 2010Richmond Hill Country Golf ClubPub NightThursday, November 4, 2010Madison Avenue PubFor further information, please contact Lenore Villeneuve • lvilleneuve@tcaconnect.comThe Construction Institute of CanadaSeminar: Construction Liens and Trusts Thursday, May 6, 2010Seminar: Bill 168 Violence and Harassment in the Workplace Tuesday, May 11, 2010Course: Blueprint Reading and Estimating Level 1Course: Construction LawCourse: Planning and SchedulingWorkshop: Ethics WorkshopProgram: The Leadership ChallengeWorkshop: Pitfalls of Bidding & TenderingWorkshop: Leading TeamsTuesdays, September 14 to November 16, 20107:00 to 9:00 p.m.Wednesdays, September 22 to November 24, 20106:30 to 9:30 p.m.Thursdays, September 23 to November 25, 20106:30 to 9:30 p.m.Monday, October 18 and October 25, 20109:00 a.m. to 12:00 p.m.Thursday, October 28 to Saturday, October 30, 20108:00 a.m. to 5:00 p.m.Monday, November 1 and November 8, 20109:00 a.m. to 12:00 p.m.Wednesday, November 17 to Friday, November 19, 20106:30 p.m. to 9:30 p.m.Seminar: Construction Liens and TrustsThursday, November 18, 20109:00 a.m. to 12:00 p.m.Workshop: The Closeout ProjectThursday, December 2, 20109:00 a.m. to 12:00 p.m.For further information please contact Roxanne Drisdelle at 416-499-4000 ext. 116 or email at rdrisdelle@tcaconnect.com • www.tcic.caBuilders' Digest Quarter 1 2010 | 33

BUYERS' & SOURCE GUIDEAluminium Building PanelsConcrete Masonry ProductsEquipment RentalsSOBOTEC LTD.67 BURFORD ROADHAMILTON, ON L8E 3C6Vladimir Sobotvdsobot@sobotec.comTel.: 905-578-1278 / Fax: 905-578-1446Website: www.sobotec.comPERMACON GROUP8375 5TH SIDE ROADMILTON, ON L9T 2X7Marcus Poiriercs.milton@permacon.caTel.: 1-800-265-0692 / Fax: 905-875-4216Website: www.permaconpro.caUNITED RENTALS2790 ARGENTIA ROADMISSISSAUGA, ON L5N 8L2C. Freeborncfreeborn@ur.comTel: 416-433-9644 / Fax: 647-723-0364Website: www.ur.comManufactured Tile & Stone Installation& Concrete Restoration SystemsMAPEI INC.2130 WILLIAMS PARKWAYBRAMPTON, ON L6S 5X7John Wm. Sommersjsommers@mapei.comTel.: 905-799-2663 / Fax: 905-799-2436Website: www.mapei.comBuilders’ DigestToronto Construction Association’s Quarterly PerspectiveADVERTISERS INDEXVol. 4 No.1 Quarter 1 2010ACO Systems Ltd....................Inside Back Coverwww.acocan.caAmherst Crane Rentals &Concrete Pumping.........................................17www.amherstgroup.caEllisDon.............................................................. 9www.ellisdon.comGeorge Brown College (Centre forConstruction & Engineering Technologies)...... 7www.georgebrown.caGiffin Canada...................................................22www.giffincanada.comThe Guarantee Company of North America...27www.gcna.comK.I.B. Building Restoration Inc.........................16www.kibrestoration.comLayfield Geosynthetics....................................25www.layfieldgroup.com34 | Builders' Digest Quarter 1 2010Mapei Inc.........................................................34www.mapei.comMultiurethanes Ltd..........................................28www.multiurethanes.comParamount Power Systems Ltd.......................19www.paramountpower.comPCL Constructors Canada Inc..........................16www.pcl.comPermacon Group..............................................34www.permacon.caOnyx Mechanical Ltd.......................................24www.onyxmech.comSchindler Elevator Corporation......................22www.ca.schindler.comSinclair-Cockburn Financial Group..................11www.scfg.caSobotec Ltd......................................................34www.vdsobot@sobotec.comSpencer Steel..................................................... 4www.spencersteel.comToronto Sheet MetalContractors Association................................15www.tsmca.orgTrisura Guarantee Insurance Company...........20www.trisura.comUnited Rentals of Canada........................ 3 & 34www.ur.comVanbots, A Division of CarillionConstruction Inc..................Inside Front Coverwww.vanbots.comwww.carillion.caWeirFoulds LLP....................Outside Back Coverwww.weirfoulds.com

ACO PowerDrain*ACO Systems, LTD(877) 226-4255www.acocan.ca*This product has received an “Accepted for Use” classification from the OntarioProvincial Standards (OPS), Products Management Committee (PMC).Trench Drainage Products – What You Need to Know!Prefabricated linear drainage products, or trench drains, are becoming increasingly common in construction projects in Ontario andacross Canada. They bring an array of benefits including simpler grades to design and construct very efficient drainage and eliminatea good part of the underground drainage piping and excavation associated with area drains. When building on rock or contaminatedsoil, trench drains can result in huge savings. When considering trench drain products for a project it is good to know the following:1. Size. Some manufacturers call their products by the inside width and some by the grate width; this means a 4” system from onemanufacturer may be the same size as a 6” system from another. Always ask for a spec sheet to know exactly how differentproducts compare.2. Slope. Not all trench drain products have a continuous slope built in. Some are only manufactured in one depth or in a few differentconstant depths called a “stepped fall”. Built in slopes will usually ensure more efficient drainage and less maintenance for yourcustomer. Neutral or “stepped fall” systems are unacceptable for many consultants or facility owners.3. Edge rails. Some trench drain products come with a built in edge rail and other products offer the edge rail as a separatecomponent. It is easier to install products with built in edge rails and they are usually stronger too.4. Test Reports. If you are working on an application where vehicular traffic will be present always ask for an independent load testreport. This is basically your insurance that you will not use a light duty system in a heavy duty application.5. Grate Locking Mechanisms. There are many trench drain systems available today with boltless locking devices for grates. Theymake the installation and future maintenance of the drain easier than bolted grate systems. All information shown above can beeasily obtained from the manufacturer. (If it’s not readily available then you may need to reconsider your product choice.)

“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