plumbing hvac jan feb 2012

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JAN/FEB 2012 WWW.PLUMBINGANDHVAC.CA Publication Mail Agreement #40063170. Return postage guaranteed NEWCOM Business Media Inc. 451 Attwell Drive, Toronto, Ontario M9W 5C4 INSIDE Quiet year mixed blessing for contractor group Plumbing group launches consumer campaign All-trades show draws record crowd Dealing with theft in the workplace HOT WATER HEATING ISSUE

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Page 1: Plumbing Hvac Jan Feb 2012

JAN/FEB 2012 WWW.PLUMBINGANDHVAC.CA

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■ Quiet year mixed blessing for contractor group

■ Plumbing group launches consumer campaign

■ All-trades show draws record crowd

■ Dealing with theft in the workplace

HOT WATER HEATING ISSUE

Page 2: Plumbing Hvac Jan Feb 2012

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swap information, share business solutions …and more!

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Page 3: Plumbing Hvac Jan Feb 2012

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 3

Refrigeration from heat Photovoltaic technology and absorption chillers

The energy factor 18 Comparing water heater efficiencies

Keep it simple 20Don’t handicap the next guy!

■ Contents

Features

DepartmentsHot Seat .........................................5What the contractor didn’t say

Industry News ..............................6Contractor group fights utilities

People & Places............................35Wholesaler opens new headquarters

Coming Events.............................37Canada’s largest mechanical event

Shop Management......................38Protecting your business

Products & TechnologiesHot Water Heating ......................13

Heating ........................................23

Refrigeration ...............................25

Faucets & Fixtures .......................29

Tools & Instruments ....................31

Trucks for the Trade.....................33

Cover photo:All forms of hot water heating technology are evolving rapidly.

Hot Water Heating Issue

The new wood heat Pellet technology drives revival 10

Page 4: Plumbing Hvac Jan Feb 2012

A: Carrier

Q: Who has tons and tons of rooftop solutions?

Carrier has a full range of commercial rooftop equipment that can fit

any new or replacement need, from base models to the high-efficiency

WeatherMaster® products.

• Quality Proven design; quality components; long-lasting operation.

• Training Analytical and selection tools help make you the expert.

• Flexible Solutions A full line of factory-certified options & accessories.

• Ease of Installation Designed for direct replacement on existing

Carrier curbs dating back to the 1980’s.

• Industry-Leading Technology & Innovation Carrier Commercial

provides the industry’s broadest range of market leading products.

For more information about Carrier commercial rooftop products,

contact your local distributor or visit www.commercial.carrier.com.

Eastern Canada (QC & Maritimes)

Frank Lepore

Tel: (514) 856-1336 x 264 [email protected]

Central Canada (Ontario)

Doug Cochrane

Tel: (905) 405-3232 [email protected]

Western Canada (BC, AB, SK, MN)

Bruce Eastcott

Tel: (403) 287-4825 [email protected]

For more information, please contact your local Commercial Sales Manager:

Page 5: Plumbing Hvac Jan Feb 2012

Publisher

Mark Vreugdenhil(416) 614-5819

[email protected]

Editor

Simon Blake(416) 614-5820

[email protected]

Design and Production

Tim [email protected]

Production Manager

Lilianna Kantor(416) 614-5815

[email protected]

Circulation Manager

Pat Glionna

Corporate Services

Anthony Evangelista

PLUMBING & HVAC Magazine is published eight times annually by NEWCOM Business MediaInc. and is written for individuals who purchase/ specify/approve the selection of plumbing, piping, hot water heating, fire protection, warm air heating, air conditioning, ventilation, refrigeration, controls and related systems and products throughout Canada.

NEWCOM Business Media Inc.451 Attwell Drive, Toronto, Ontario, Canada M9W 5C4Tel: (416) 242-8088 • Fax (416) 242-8085

POSTMASTER: Send all address changes and circulation inquiries to: Plumbing & HVAC Product News magazine, 451 Attwell Drive, Toronto, Ontario, Canada M9W 5C4. CanadianPublications Mail Sales Product Agreement No. 40063170. Postage paid at Toronto, ON.Annual Subscription Canada: $40.00 plus applicable taxes, single copy $5.00 plus applicable taxes. Annual Subscription United States: $60.00 U.S. Annual Subscription foreign: $90.00 U.S.

Copyright 2011. The contents of this magazine may not be reproduced in any mannerwithout the prior written permission of the Publisher.

We acknowledge the financial support of the Government ofCanada through the Canada Periodical Fund (CPF) for ourpublishing activities.

A member of: Canadian Institute of Plumbing & HeatingCanadian Circulation Audit BoardMechanical Contractors Assoc. of CanadaOntario Plumbing Inspectors AssociationAmerican Society of Heating Refrigerating & Air Conditioning Engineers

Heating Refrigeration and Air Conditioning Institute of Canada

Refrigeration Service Engineers Society of Canada

January/February 2012Volume 22, Number 1

ISSN 1919-0395

Canadian Business Press

Member

■ Hot Seat

Over the years the industry has implemented a numberof programs to promote plumbing, heating and coolingto the consumer. The Canadian Institute of Plumbingand Heating has a new campaign to convincehomeowners that what’s behind the wall is important,the Beautiful Heat campaign is promoting hydronicheating and the Today’s Oilheat campaign promotedefficient oil heating.

And while these are all helpful, I also often wonder ifthe trades couldn’t do a better job of promoting ourindustry and the solutions it can offer to virtually anyindoor environment or plumbing issue that ahomeowner might bring up. It seems to me that somecontractors know their products and are good at this andsome aren’t.

It’s always interesting to play dumb when a contractorvisits my house and see what they suggest if I, forexample, say one room is too hot while another is toocold. More often than not I’ve been told it’s just thenature of our antiquated hot water heating system. Andyet I know there are thermostatic radiator valves andother devices that might offer a solution.

Or sometimes when I’m talking to a contractor abouta problem they ran into out in the field and ask why theydidn’t install a certain part, they say: “They didn’t ask forthat.” Well, the customer didn’t ask for it because theydidn’t know it existed. The tradesman is the expert – heshould have known and should have suggested it.

Of course, solutions can be expensive and sometimes

difficult to implement given the existing structure. If thecontractor suggests zoning a forced air system to dealwith the hot/cold bedroom problem, that can add asignificant amount of dollars to what likely started as asimple furnace change-out.

But at the same time, it’s worth running the idea andcosts by the customer. Contractors sometimes assumethe customer won’t go for it because of the additionalcost and therefore don’t mention it. That assumes a) thecustomers doesn’t have the money and b) that theproblem really isn’t all that important. But even if thefirst is true, a bedroom that is always too hot or cold, forexample, may be a big enough problem – and a constantsource of complaining from the spouse – that they willfind a way to finance a solution.

So, and I’ve harped on this before, it’s a mainly amatter of keeping up to date on products and findingsolutions that really work. It’s human nature to getcomfortable with using certain products that work wellfor you, but it always pays to broaden your horizons byactively searching out and implementing a wider rangeof solutions for your customers.

Things my contractor didn’t tell me

www.plumbingandhvac.ca

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Page 6: Plumbing Hvac Jan Feb 2012

The little contractors organization that hasbeen fighting large utilities in Ontario asthey try to move into the HVAC businessmay itself have come off looking like abully in a recent dispute, admitted Martin

Luymes, vice president of the Heating, Refrigerationand Air Conditioning Institute of Canada (HRAI) atthe Coalition’s annual meeting held in Woodbridge,Ont. Nov. 29.The Coalition put considerable pressure on NorfolkPower Inc., one of the province’s smallest utilities with18,000 customers in Simcoe, Ont., after it advertised bothHVAC and ground source heating equipment on itswebsite. As reported in P&HVAC last January, the groupdecided to use the Norfolk Power case to set a precedent,threatening to intervene in the utility’s Ontario EnergyBoard (OEB) rate hearing, file a complaint under theOEB’s affiliate relationship code for electrical utilities andaddress the local municipal council. None of that turned out to be necessary. Norfolk

Power, or rather its affiliate Norfolk Energy, appearsto have largely abandoned the ground source business,said Luymes.

A quiet year“I was going to talk to you about how little we’ve doneover the past year and how that’s a good thing,”remarked Luymes, noting that if the utilities stopped

eyeing the HVAC business the organization probablywouldn’t be necessary anymore.However, the group must remain vigilant on a couple of

fronts, he added. The Ontario Green Energy Act setsconservation targets that are difficult for utilities to meet.A number of utilities in B.C. have addressed similarpressures by getting into the alternate energy sector,notes Luymes. “When you drill down, what they arereally talking about is getting into your business.”As well, there have been discussions at the OEB abouthow to get utilities more involved in energy

conservation. New OEB chair andCEO Rosemarie Leclair previouslyheaded Ottawa Hydro and, with thatutility background, may not be assympathetic to the issues facingHVAC contractors, remarked Luymes.Despite these threats, for the firsttime in several years the HVACCoalition did not use the annual

meeting to launch a fundraising campaign. As a resultof a quiet 2011, the usually cash-strapped organizationended the year with $33,000 in the bank.✚

6 Plumbing & HVAC – January/February 2012 www.plumbingandhvac.ca

■ Industry News

Role reversal?Small utility backs down after pressure from the HVAC Coalition

By Simon Blake

When you drill down, whatthey are really talking about is getting into your business.

Stainless steel down-fired Fire Tube design

Nine models from 60,000 to 399,000 BTU/Hr

Full modulation up to 5:1 turndown

Advanced Sola Controller and Interface

96% AFUE efficiency

Page 7: Plumbing Hvac Jan Feb 2012

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 7

Energy Star for furnaces returnsCanada will re-introduce the EnergyStar standard for forced air gasfurnaces on Feb. 1. All qualifiedfurnaces must have an AFUEefficiency of 95 percent or higheralong with two percent fan efficiency.The previous Energy Star ratingdisappeared on Jan. 1, 2010 whenNatural Resources Canada (NRCan)raised the minimum efficiency for gasfurnaces to 90 percent, the same asthe existing Energy Star rating.Energy Star recognizes appliances inthe top 25 percent for efficiency intheir category.

Watts to acquire tekmarWatts Water Technologies Inc. ofNorth Andover, Massachusetts hassigned an agreement to acquire hy-dronic controls systems manufacturertekmar by the end of January. Ver-non, B.C. headquartered tekmar wasa pioneer in developing sophisticatedelectronic controls for hydronic heat-ing and other HVAC applications.

Comprehensive housing report releasedThe Canadian Mortgage and HousingCorporation (CMHC) has released itsninth annual Canadian HousingObserver, a comprehensive report onthe Canadian Housing market. Itreveals that housing-related spending

contributed about $330 billion to theCanadian economy in 2010 — up7.1 per cent from $308 billion in2009. The Observer provides insightinto things like the impact of anincreasing number of seniors, lowinterest rates, urban housing trends,etc. It is available online atwww.cmhc.ca/observer.

Hydronic heating organization absorbedMembers of the Radiant PanelAssociation voted Dec. 5 to combinethe organization with theInternational Association of Plumbingand Mechanical Officials (IAPMO) andto change its name to the RadiantProfessionals Alliance. The move isdesigned to give RPA better staffresources, management and long-term planning. Existing RPAmemberships will be recognized andall RPA educational materials andprograms will continue to be available.

Ambitious Habitat goalThe Canadian Institute of Plumbingand Heating (CIPH) charity committeehas set an ambitious goal of raising$2.75 million in products and cashfor Habitat for Humanity Canadaover the next two years. CIPH, withsupport from the Heating,Refrigeration and Air ConditioningInstitute of Canada (HRAI) in recentyears, has raised over $7.5 million forHabitat since 1994. For moreinformation, visit www.ciph.com.

Record crowds kept exhibitors like Uponor busy during Construct Canada.

All-trades show sets recordA record 24,200 construction industry personnel passed through the doors at the23rd edition of Construct Canada, held at the Metro Toronto Convention CentreNov. 30-Dec.2. The mechanical industry was well represented among over 1,000exhibitors displaying all sorts of construction technologies.

In Brief

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Special patent pending PVC flexible tubing. Eliminatesfour field joints. Innovator™ overflow parts assemble by

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Page 8: Plumbing Hvac Jan Feb 2012

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Page 9: Plumbing Hvac Jan Feb 2012

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 9

As any contractor knows, selling residentialcustomers on efficient and effectiveplumbing and heating systems can betough when up against granitecountertops, elaborate kitchen cabinets

and expensive flooring. For many homeowners, it’s allabout what they – and any guests – can see.

The Canadian Institute of Plumbing and Heating(CIPH) has begun a campaign to convince homeownersthat what’s behind the wall really matters.

“When Canadians consider their plumbing andheating needs, and the industry as a whole, ourcommitment to water and energy conservation,innovation and technological advancement is rarelyfront-of-mind,” says Ralph Suppa, CIPH president andgeneral manager. “We at the CIPH know the plumbingand hydronic heating industry is creative, dynamic andfuture-focused, not just in terms of the products weoffer, but also in terms of the diverse career and trainingopportunities in the field.”

As a result, CIPH has partnered with marketingagency Cohn & Wolfe to “educate and informCanadians about all things plumbing and heating.”The Corporation of Master Pipe Mechanics of Quebec

(CMMTQ) is also supporting the campaign and theMechanical Contractors Association of Canada(MCAC) has also been approached.

The campaign will kick off on World PlumbingDay

March 11. Initially, it will target home improvementsections in newspapers and other media outlets. Aswell, educational videos for consumers are beingdeveloped.

Suppa noted that there are a number of resources –videos, design tools, etc. – that the industry has alreadydeveloped that need to be pulled together and madereadily available to homeowners.

“We need to share with the consumers all the goodworks that this industry does.” he added.✚

■ Industry News

Behind the wallCIPH campaign urges consumers to think beyond aesthetics

Professional service wins in tough times

Dear Editor:I just read your article in Plumbing & HVAC(Dumbing down, Nov./Dec. 2011). I’m a 35-yearveteran in the industry starting with Hoffman Brosin Hamilton, Ont. in the early seventies, so I havea little history behind me .

I thought the article was right on the mark . Ithas been interesting to watch plumbers cycle toand from new construction and service work overthe years. Our customers can often justify whythey do one or the other and point to their ability

to make their chosen work profitable. Newconstruction is cleaner and requires less thinkingwhen doing cookie cutter rough-ins and finishes.Both segments are challenging and competitive.

Reliable professional on-time tradeprofessionals always win even in tough economies.Too bad the market is full of those “other guys”servicing the consumer. Mike Holmes reminds usto be vigilant

Gerry BakerRegional ManagerSource Atlantic LtdHalifax, N.S.

Letters

GI-A

D086

En-01

12

Water heaters built by Canadians for Canadians!Afamilybusinessby Canadians for Canadians!Water heaters built by Canadians for CanadiansWater heaters built by Canadians for Canadians!

Page 10: Plumbing Hvac Jan Feb 2012

wo hundred years ago Charles Dickens wasborn, Beethoven was composing his SeventhSymphony, North America was fighting a war

that would help finalize national boundaries, andpretty much every building in the world was heatedusing wood as fuel. But the steam engine had just beeninvented and the industrial revolution was beginning.We started using coal, oil and gas for fuel. Today inNorth America only about five percent of homes and

businesses are heated using wood.However, what was old is new again. Wood fuel is the

fastest growing choice in North America, increasing by34 percent in the past decade. It is likely to continuegrowing rapidly. Wood dominates the renewable energycategory with 80 percent of the market. We’re not talkingabout soldiers chopping all afternoon, then thawingtheir frostbitten feet by the campfire. Wood pelletsdominate the wood fuel sector, for the same reason that

natural gas is the modern heating leader: convenience.Pellet systems are not yet as convenient as thermostat-controlled natural gas furnaces, but believe it or not, theymight become this easy in the not-too-distant future.

Advancing technologyBecause Europe imports all its oil and has made pelletstoves, furnaces, boilers and bulk delivery a way of lifefor decades, it was only a matter of time and oil scarcitybefore North America began to adopt these appliances indecent numbers. And now a few Euro-style pelletdelivery trucks are beginning to emerge here too.

But it would be folly to assume we are copyingeverything the mother country has already done. In fact,a frenzied level of energy system innovation is occurringin North America, creating an unprecedented laboratoryfor a whole new global energy landscape, in which woodpellet biomass will be a key participant; along with solar,geo and new kinds of electricity.

Large pellet systemsJust one equipment maker, Viessmann, Waterloo, Ont.,has taken orders for pellet boilers in more than 50schools, hospitals and correctional institutions acrossCanada. They range in capacity from 160 kilowatts to1250 kilowatts, heating thousands of square metres ofgovernment and commercial buildings. They combinewith other new technologies and many are accompaniedby new ways to store pellets in quantity, while bulkdelivery arrangements with Canadian pellet companiesare under negotiation.

In the Nazko Valley Elementary School near Quesnel,B.C., a propane-fueled heating system was recentlyreplaced with a 300 kilowatt (1024 MBH) Pyrot rotarycombustion wood fired boiler, a silo and a containerizedsystem. It is thermostat-controlled with automatic de-ashing and pneumatic cleaning options. It even featuresa web interface for remote system monitoring.

At La Cité Verte in Quebec City four monster 1250

10 Plumbing & HVAC – January/February 2012 www.plumbingandhvac.ca

■ Building Green

biomassNew pellet technology driveswood heating revival

The state-of-the-art biomassboiler room at Cite Verte is a

far cry from what peopleusually think of when

discussing wood heat.

Today’s

TBy Bruce Nagy

Page 11: Plumbing Hvac Jan Feb 2012

kilowatt pellet boilers (total five MW) are heating twowater buffer tanks of 22,000 litres each, before feeding alow temperature hydronic network that distributes water(supply 90ºC – return 50ºC) for space and DHW tosubstations installed in the first few buildings of what willbecome a big complex. There will be 800 housing units,plus 7,000 square metres of office and commercial space.In addition, a neighboring hospital may be connected.

The substations are controlled by a centralized systemthat will also monitor real-time energy and waterconsumption for each individual condo owner. A fiveMW emergency natural gas boiler will provide fullbackup for the biomass boilers if needed. In case ofpower failure, a 650-kilowatt diesel generator will ensurethe operation of the system. The new biomass boilers arenow operational and have demonstrated combustionefficiency of 84.5 to 86.5 percent at full output. Pelletswill be trucked in from a plant three hours north of

Quebec City. Wood fibre is guaranteed through long-term licensing by the province.

Pellet productionThe 2008 U.S. real estate crash savaged the Canadianlumber business, so governments tried to save jobs bysubsidizing pellet plant construction. This has extendedthe infamous North American pellet market volatility, bycreating gluts, followed by bankruptcies, then shortages.

To complicate matters, wood pellets for electricitygenerating stations are in demand in huge quantities inmany parts of the world, especially Japan, Korea, China,the UK and the rest of Europe. This means NorthAmerican investors have sought very large plants to takeadvantage of the export opportunities, which drivesdown domestic pellet prices and along with costly landtransportation has strangely limited supply further.

But with worldwide demand tripling to 45 million tonsin the next 10 years, mass retailers now selling pellets in bagsand trading groups are appearing in key regions; NorthAmerican pellet supply stability will eventually arrive.

Technology improvementsA few years ago Darren Sharpe, president of NorthernMetal Works in Sunderland, Ont., began turning awaycustomers. He wanted to spend more time oninnovation. He started work on an outdoor furnace thatcould burn any kind of biomass: wood pellets, chips,logs, corn, grass, and wheat; it’s a long list. Beingoutdoors, it’s easier to access and modify his newsystems. His target customer is every farm, greenhouseand commercial operation in Ontario that needs to heatmore than 5,000 square feet. He got UL and ULCapprovals this month and now Darren is working onnew pellet and wood chip delivery systems.

Meanwhile the humble and improving indoor woodpellet stove is being ordered in large numbers in Ontario,Nova Scotia, Newfoundland and New England (oil furnacecountry). Steve Taylor, president of Authorized Stove and

Repairs in Marmora, Ont., says his company’s installationswere up by 40 percent in 2011 and his pellet sales are onfire. He attributes it to uncertainty in 2010 then continuinghigh oil prices that resulted in operating savings up to 50percent with pellets, for very short paybacks. More efficientstoves and better ash control are also helping.

Kim Davis in Mount Pearl, Nfld. says that province’snew construction boom is characterized by bigger homesand a lot of geothermal combined with pellet stoves. Herinstaller, John Corbett, says the new stoves have electronicignition, can be connected to wired or wireless thermostatsand are less noisy. Vented stovepipe collars help bring freshair into tightly insulated structures without losing toomuch heat energy. More restrictive codes mean installersmake sure they have four to five feet of elevation outside,in case the power goes out and the stove fan stops working.

Wood fuel may be a long way from reclaiming thehome heating market from natural gas, but customersare no longer chopping all afternoon and huddlingaround the campfire to stay alive. ✚

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 11

Bruce Nagy is a Toronto-basedfreelance writer that reports on greentechnologies and solutions. He can be reached [email protected].

A frenzied level of energysystem innovation is occurring in North America.

Each buffer tank stores 22,000 litres at Cite Verte. A five-storey wood pellet silo feeds four boilers that provide heat andDHW for 800 housing units, commercial space and a hospital.

A pellet boiler replaced a propane heating system at Nazko Valley Elementary School.

Page 12: Plumbing Hvac Jan Feb 2012
Page 13: Plumbing Hvac Jan Feb 2012

esidential electric hot water tanks are a solidreliable product that has been around a longtime. But in an age where everything is hightech – or “green” – they don’t draw a lot of

attention.The technology is far from stagnant,however. Manufacturers have improvedefficiency, DHW capacity and recovery

time in recent years.Lower electricity rates in Manitoba and Quebec have

long driven the market in those provinces. Today otherfactors are giving electric a boost.

The ability of a storage tank water heater to maintainhot water for a long period of time with minimal energyuse is more critical today as electrical utilities move totime-of-use billing. If families can do the bulk of theirshowering, dish washing, laundry, etc. in off-peak hours,the savings can be significant.

“It’s all about how much you are going to pay forenergy and when are you going to use hot water,”remarked Claude Lesage, president of Giant Factoriesin Montreal.

As well, changing regulations have made gas waterheaters more expensive. “The traditional electric storagewater heater became more attractive because thereweren’t venting issues with it, it was simpler to installand it was a lower capital cost product,” remarked DaveMcPherson, general manager for Rheem Canada Ltd.,Brampton, Ont.

“There is so much regulation, the cost of installing agas water heater is getting higher and higher,” added PaulMcDonald, director, sales and marketing for Bradford-White Canada, Mississauga, Ont.

As well in Ontario, where 90 percent of the waterheaters are rented, the rental companies are no longertied to the gas utilities and will install an electric unitwhere it makes sense.

Efficiency standardsWater heaters are rated by energy factor (EF), which isan overall rating of the unit’s efficiency. A typical 40or 60-imperial gallon electric water heater would have

a rating of .92 or higher. The higher the number, themore efficient it is.

Natural Resources Canada (NRCan) rates waterheaters by standby loss. In 2004 it reduced the maximumallowable standby loss (in watts) to 40+(0.20V) for tanks11 to 59 Imp. gallons (50-270 litres) and (0.472 x V) –48.5 for 60-100 gallon tanks (270-454 litres), where “V”is volume.

In 2009 B.C. introduced its own efficiencyregulations, reducing the allowable standby loss to 25watts for the smaller tanks and creating a headache formanufacturers by forcing them to make specialproducts for B.C.

Explaining water heater efficiencies to the customercan be difficult if there are different fuel options. Thereis no Energy Star standard for electric. In a pure energyfactor comparison, a gas water heater might be .64while an electric might be rated at .92. But that’s notthe whole story.

An electric water heater with a 4,500-Watt elementtakes about twice as much time to recover as a gas waterheater with 50,000 Btu/h input, notes McDonald. “Wesee homeowners going back to gas, or putting in asecond electric tank.”

Efficient operationDesign improvements in recent years have improved theefficiency of electric water tanks. Manufacturers movedthe inlet to the bottom and added insulation. They’veadded glass lining and heat traps. New elementconfigurations optimize heating capability andefficiency, noted Bill Hewa, residential electric product

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 13

■ Hot Water Heating

Efficient electric

Please see ‘Heat’ on page 15

water heating

Heat pump water heaters, like the AO Smith Voltex, draw heat from their surroundings.

Giant EcoPeak tanks gain efficiency with three elements.

Changing marketplace,codes drive growth

By Simon Blake R

Page 14: Plumbing Hvac Jan Feb 2012

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Page 15: Plumbing Hvac Jan Feb 2012

manager for A.O. Smith, Fergus, Ont.However, striving for efficiency isn’t

new, noted Lesage. In 1956 QuebecHydro was struggling with poweroutages as everyone came home fromwork and jumped in the shower. Thisresulted in the development of the“Canadian style” twin-element electricwater heater with a smaller element toprovide the base load and a larger onethat kicks in when demand is high.

Today, Giant’s three-elementEcoPeak water heaters work on thesame principle. The bottom element is800 Watts to cover the base load – thefirst 28 gallons – in a 60-gallon tank.Alone, it can provide about 72 gallonsof DHW per day. The middle 3,000-Watt element kicks in when the demandis higher and then finally the 3,800element at the top if additional hotwater is required.

Ensuring that the water temperatureremains consistent from top to bottomallows the elements to be run at a lowertemperature, improving efficiency, whileat the same time reducing scaling.

Bradford-White has taken a differentapproach. Its “Hydrojet” technology isbasically a perforated inlet tube thatforces the water to mix sooner, creatinga quicker recovery and thus moreefficient operation.

Rheem’s Marathon water heater avoids scalingaltogether with a plastic tank and jacket, which alsoprovides substantially lower standby losses than aconventional steel tank.

The AO Smith Conservationist line features glasslining, which dramatically reduces the corrosive effectof hot water, along with additional insulation and heattraps to maximize efficiency.

Heat pump water heatersThe new heat pump models offered by A.O. Smith,Rheem and General Electric are probably theultimate in electric storage tank water heaters.Electricity consumption is roughly half of aconventional DHW heater.

Basically, they use an air-source heatpump that pulls heat from the roomand dumps it at a higher temperatureinto the tank, operating like arefrigerator in reverse. They usuallyhave electric resistance heating asbackup. They operate best in a warmspace like a furnace room and will tendto cool the room down. In fact thewarmer the space the more efficientthey become.

Installation is no more difficult thana conventional electric tank, reportsPaul Gharghoury, Canadian marketmanager for Rheem Canada.

They cost about three times asmuch as a conventional electric tank,but in areas where electricity rates arehigh the payback can be relativelyquick.

InstallationAs any plumber knows, electric watertanks are easy to install. Probably themost important step for thecontractor is to determine thehomeowner’s lifestyle and budget.While the standard 40-gallon tank willmeet the needs of most families, ifthere is a soaker tub or multi-jetshower in the home, a 60-gallon orlarger is a must.

“If the homeowner can spend$40,000 on a shower, they can spend

$800 on a water heater,” remarked Lesage. “A waterheater is one of the smallest expenses in a home, but it isthe one that gives you the most for your money.”

The plumber has to make sure there is enough powerto operate the tank the customer chooses and that thecable is large enough to handle the power. Typically,there’s a jump in cable size for any tank requiring morethan 3,800 Watts.

Minimizing pipe runs by locating the tank in a centrallocation, if possible, along with insulating the hot waterlines will also boost efficiency, noted Hewa.

An evolving technologyElectric tanks will continue to evolve. Lesage expectsthere will soon be 80-gallon models to handle thehigh-end bathrooms that stretch the capacity of a 60-gallon unit. As well, Giant is working on a highefficiency, high temperature glass-lined tankdesigned specifically for markets with time-of-usehydro rates.

Rheem’s McPherson says: “We expect there will bemore demand for residential electric just because ofthe way the efficiencies are moving.” And with a tighteconomy, “Water heaters are still a replacement typebusiness. If you can find a lower cost replacementsolution, people tend to (adopt) it,” he added. ✚

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 15

■ Hot Water Heating

Heat pumps boost electric DWHContinued from page 13

Bradford White’s Hydrojet technology ensuresbetter mixing of hot and cold water forquicker recovery.

It’s all about how much you are going to

pay for energy and when are yougoing to use hot water.

The Rheem Marathon’sunique plastic tankand jacket results inhigh efficiency andprevents scaling.

The result is about 50 percent energy savingsover a conventional electric DHW tank.

Page 16: Plumbing Hvac Jan Feb 2012

PHVAC - JAN - Combiplus - Outlines.ai 1 1/19/2012 1:30:36 PM

Page 17: Plumbing Hvac Jan Feb 2012

Compact tankless DHW heaterThe new Energy Star qualified Noritz NRC83 ecoToughcondensing on-demand water heater is designed forsmaller homes and multi-unit applications. Available inindoor or outdoor versions, it vents with Schedule 40 or80 PVC or CPVC, has a 0.92 energy factor, flow rate up to8.3 gpm and temperature settings from 100°F to 140°F.Noritz u www.noritz.com

Efficient volume DHW heaterThe new Mighty Stack volumewater heater from Laarscombines the company’sMighty Therm 2 boiler with an80-gallon storage tank,resulting in 199, 300 and 399MBH sizes. Designed for lightcommercial applications,features include a smallfootprint, removable upperboiler section, commonventing and a steel cabinet forindoor or outdoor installation.Emissions are less than 10 ppm

NOx and efficiency is rated at 83 percent.Laars u www.Laars.com

Hydronic trench heatingThe new in-floor Micro Canalradiator from Jaga ClimateSystems uses quiet fans todistribute heat. Only six inches high and 13 inches wide,installation is easy with a height adjustment system toallow the grilles to align perfectly with the floor. Thegrille is available in many colors to match interior decor.Jaga Climate Systems uwww.jaga-canada.com

Keep those older systems going!Hydronic heating guru DanHolohan has a new booktitled Classic Hydronics: HowTo Get The Most From ThoseOlder Hot-Water HeatingSystems. It shows how thesesystems work, where theycame from, how they’vechanged over the years, andwhat contractors can do toget the most out of them

without having customers spend a fortune.Dan Holohan u www.heatinghelp.com

Tighter homes, smaller furnacesJohnson Controls has expanded itsLuxaire LX Series of residential gasfurnaces with 95.5 and 96 percentAFUE models. Designed for smallor tighter homes, the input rate is40,000 Btu/h and airflow capacityis rated for 1000 cfm nominalrather than 1200 cfm nominal,which matches the furnaces with Luxaire cooling unitsranging from 1 to 2.5 tons.Luxaire u www.joinluxaire.com

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 17

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Page 18: Plumbing Hvac Jan Feb 2012

In previous articles, we focused onthe performance capabilities oftank and tankless water heaters.Now let’s change gears and look atthe efficiency and thus potential

savings for homeowners.In the Nov/Dec 2011 edition of

P&HVAC, I suggested using thefollowing efficiencies as rough estimatesto calculate hot water productionperformance:

For condensing tankless, use 100percent, and for non-condensing andtank type water heaters, use 80 percent.In terms of calculating the GPM rates for

tankless and the temperature recoverytime for tanks, those easy roundnumbers work well enough.

To calculate efficiency gains, however,we need to look further into the designand operation of both types of technology.The biggest difference between the twotechnologies is that tankless has no storagewhereas tank-type water heaters have 40or 50 gallons of water that needs to bemaintained at set point.

Over time, regardless of how wellinsulated the tank is, some heat willescape, the temperature of the waterinside the tank will drop and will have to

be re-heated. This ‘standby heat loss’ willresult in the tank-type heater using gasto re-heat the water inside, even when noone has drawn any new hot water (forexample, during the day when most areat work and/or school or overnight). Assuch, this additional gas usage de-ratesthe overall efficiency of the tank-typewater heater. If the tank has a standingpilot, that compounds the losses.

When I mentioned using 80 percent asthe efficiency number for both tanks andnon-condensing tankless, I was referringonly to the Btu/h transfer rate based on asampling of manufacturers’ specifications.

This 80 percent number is not howeverde-rated for the standby loss. For anoverall performance comparison of thetwo technologies, we have to look at theEnergy Factor (EF) testing results for eachindividual appliance.

Apples to applesThe purpose of the EF number is toprovide a metric by which the industry(including contractors andhomeowners) can compare and evaluatethe various products on the market. Thepresent Energy Factor test method forwater heaters totals the energy consumed

18 Plumbing & HVAC – January/February 2012 www.plumbingandhvac.ca

■ Hot Water Heating

Comparing water heater efficiencies

By Steve Bagshaw

The

Table 1: The average EF results for a typical 50 U.S. gallon/40,000 Btu/htank-type water heater.

ENERGY FACTOR

Clean workmanship ona multi-unit residential

tankless installation.

Table 2: The average EF results for typical non-condensing and condensingtankless water heaters.

Table 3: The estimated percentage savings that should be gained by comparing the EFs of various tanks to various tankless DHW heaters.

Page 19: Plumbing Hvac Jan Feb 2012

(both gas and electricity) by eachappliance (tank and tankless) over a 24-hour period and then assigns an EnergyFactor (EF) number. The higher the EFnumber, the better it performed (i.e.used less energy) during the testing.Table 1 provides the average EF resultsfor a typical 50 U.S. gallon/40,000 Btu/htank-type water heater.

Note that the Btu/h transferefficiencies (75% => 79%) are decent,but it’s the standby losses that result inthe significant reduction in the EF (-0.17~-0.12).

Table 2 provides the average EF resultsfor typical non-condensing andcondensing tankless water heaters.Comparing EF numbers of variousproducts will help you estimate thesavings that can be gained. To calculate,use the formula below:Estimated Percentage Savings = 1 – (EFtank÷ EFtankless)

For example, when considering thepurchase of a new natural gas waterheater and wanting to compare a gastank-type water heater with an EF of0.58 to a gas condensing tankless with anEF of .94, the condensing tankless shoulduse 38.3 percent less fuel (EstimatedPercentage Savings = 1-(.58/.94) =38.3%).

Table 3 calculates the estimatedpercentage savings that should be gainedby comparing the EFs of various tanks tovarious tankless. Again, much of thesegains come from the fact that tanklessdoes not have any storage.

Test procedure questionedThe present debate within the industry,however, is whether or not this presenttesting procedure (six hourly draws of10.8 gallons (at three GPM) followed bya standby period of 19 hours for a 24-hour test) is reflective of how hot water is

actually used in the average NorthAmerican home. A study titled ActualSavings and Performance of Natural GasTankless Water Heaters, prepared for theMinnesota Office of Energy Security,Center for Energy and Environment,suggests the total water used per day ismore in the 40 gallons per day (GPD)range and the number of daily hot waterdraws is closer to 45 draws, with themajority of those draws typically beingunder 2 GPM and under 20 seconds induration (compared with present testmethod of 64.8 GPD of 6 draws at 3GPM for approximately 3.6 minutes).While not a definitive study because ofthe small sample size, the findings likelypresent a more accurate picture of wateruse in the average home. If you studiedyour own hot water usage pattern, youmay agree with these findings.

The authors also suggest that whenthey evaluated their actual site data andcompared with published EFs, the EFs ofall appliances were overstated, tank-typeheaters overstated by 23 percent andtankless overstated by 11 percent. Thedebate will continue and anyprognosticating by those on either sideshould be taken as fiction until moreactual data facts are presented.

Rebates availableRegardless of your preferred water heatertype, there are both federal andprovincial rebate monies available forwater heaters. The ecoENERGY grantprogram ends March 31, so takeadvantage now of this offering. Thesefederal grants are significant and can betwinned with many provincial and evensome municipal programs for even moresavings for the homeowner.

Table 4 provides a summary of federaland provincial programs only toencourage you to find out more on your

own. Please confirm all data yourselfprior to using. To determine the totaldollar value available, add the federalportion in yellow to the provincialportion in blue to get the total ‘green’ foryour customers. Don’t forget to lookinto municipal programs as well.

Check out the programs on the web at:http://oee.nrcan.gc.ca/residential/personal/retrofit-homes/retrofit-qualify-grant.cfm.

For a list of accompanying provincialand municipal programs, please see:

http://oee.nrcan.gc.ca/corporate/incentives.cfm

Happy selling! ✚

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 19

Steve Bagshaw isbased in Vancouverand has worked exten-sively with tanklesswater heaters in theCanadian market for

the last nine years. He can be reachedat [email protected].

Table 4: A number of federal and provincial rebates are available.

Page 20: Plumbing Hvac Jan Feb 2012

Clean it up, keep it simple and make it easy for the nextguy. In the next few articles we will look at how to designand install hydronic systems so that they don’t look likea scientific experiment that got out of hand.

Often, I get called to a site to assess why a hydronicsystem is not performing as it should. This photo showsthe kind of thing I regularly find.

Although there areliterally hundreds ofpurpose-built radiantfloor heating mani-folds manufacturedfor our market, manycontractors make theirown. This particular

work-of-art was installed in a $2-million dollar home,and the owner was frustrated because – after hewatched a TV show that showed how to balance radi-ant manifolds – he couldn’t figure out how to do it withthis rig. Indeed.

I often encounter systems piped like the one below,and although it was well done, it was almost impossiblefor the average technician to sort out what went where,when and how. One fellow put yellow labels on some ofthe components, and a few arrows here and there, butfell short of the goal of making things simple for the nextguy. Too much stuff, crammed into too small a space,requires even an expert to get out a pad of paper and apencil, and sketch out all of the components, just to seehow it all works.

And I am not just worrying about piping here, controlwiring often causes even more headaches, as shown inthe next example.

We weren’tquite sure whathappened to thecontrol or itswiring on this job,but somebody ob-viously had a verybad day trying tofigure it out. Nodocumentation,everything dis-connected – timeto start over again.

Well engineeredOften, the problems start with lack of space, but the nextphoto shows how nicely you can build things, given thespace. This is an older school in Surrey, B.C. – beautifullydone. Every component is clearly visible and accessiblefor service – a result of good project management atevery step.

I am not worried about jobs that are properlyengineered and managed. But most of the experts in ourtrades have grey hair and creaky joints and won’t bearound much longer. I have had the privilege of workingwith some very fine and talented engineers and tradespeople over the years, and I am going to draw on muchof what they have taught me to make this series ofarticles a valuable tool.

20 Plumbing & HVAC – January/February 2012 www.plumbingandhvac.ca

■ Hot Water Heating

Keep it simple!Make yourhydronic heatinginstallation easy toservice for thenext guy

By Roy Collver

Page 21: Plumbing Hvac Jan Feb 2012

Is compressedplumbing andconvoluted piping abad thing? After all,sometimes you haveno choice, as in thephoto above. This is apart of an engine from

a Russian jet fighter. Hey, plumbing is plumbing and itdoesn’t get much tighter than this. You can rest assured,however, that there is a comprehensive and well-illustrated manual that identifies and explains everysingle component of this machine so that any properlytrained technician can work on it. With hydronicsystems – not so much.

Keeping it simpleThe next photo was sent by my pal Burt Adams, anengineer based in Pagosa Springs, Colorado. One way toaccomplish what I am getting at here is to keep thingssimple. Look at Burt’s almost Zen-like approach to thishydronic layout – you don’t need a map for this one.There is a primary loop pump for assured flow ratethrough the boiler and a variable speed pump for theheating zones so there is no need for pressure bypassvalves and associated bits and pieces.

Aha! You say –easy to do withsuch a simple sys-tem. What doeshe do when it getsmore compli-cated?

Glad youasked. Burt oncemade his livingkeeping navy ves-sels in top work-ing condition so,although he lovessimplicity, when itgets complicated

he also knows what to do. It doesn’t get much morecomplicated than the following residential system. Solar,DHW, radiant and more – all jammed into a hole notmuch bigger than a closet.

There’s that spaceproblem we weretalking about again.Sometimes you justgotta do what yougotta do, but have areal close look at thisjob. Every pipe islabelled with flowdirections shown.There is a big polystorage tank jammedto the left, DHW tankjammed to the rightand the boiler

jammed to the back. All of this jamming occurred toleave the other critical components accessible forexamination and service. In addition, to give the nextperson in a half a chance, all of the piping and wiring isdocumented with “as-built” drawings that were left on-site.

I have been astounded more than once to hear somecontractors state that they didn’t want anyone else tohave access to such drawings – giving them a form of jobsecurity. Trust me, if you do work like Burt, you won’t beconcerned about job security – the word gets out. This isa well documented job, as compared to this next one:

I see beautifulwork; no com-plaint there. Thecraftsmanship issuperb – butwould a label ortwo break thebank? Try andfigure this one

out at 2 a.m. when your irate customer demands toknow why the bedroom is freezing and the kitchen isroasting and there is no hot water for a shower.

Creative ideasSo, are there systems that get so complicated that even anexpert can’t easily figure them out? Yes there are, butwith some good practices and creative ideas, even themost complicated system can be much easier tounderstand.

There are all kinds of neat things out there to help inour quest to simplify. Above, a couple of boiler low lossheader/distribution manifolds and a rough-in panel forradiant distribution can help make your systemcompact, less prone to installation error and moreserviceable.

I just had to include this last photo from my “Hall ofShame” photo album. I can’t even remember where Itook it, but it shows the end result of a system whereaccess to components and serviceability were a minorconsideration.

I draw your at-tention to thepump motor“cooling device”and the pump seal“leakage contain-ment system”added by some cre-ative maintenancepeople after theyrealized that too

much money and effort would be wasted trying to re-pair the problems, likely because access was going to betoo difficult. ✚

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 21

But most of the experts in our trades have grey hair and creaky joints and won’t be around much longer.

Roy Collver is an author andconsultant on hydronic heating basedin Peachland, B.C. He can be reached at [email protected]

Page 22: Plumbing Hvac Jan Feb 2012

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Page 23: Plumbing Hvac Jan Feb 2012

One of largest purchases that most of usmake is a home. When a home is soldthere is usually at some point a call for ahome inspector to validate the home’scondition. And there lies a problem.

Home inspectors are not regulated by any provincial orfederal regulations, except in B.C. and Alberta. As such itis possible for a local know-it-all handyman to hang outa shingle and then it becomes “buyer beware.”

Sometimes these inspections can bring disturbingnews and result in holding up or terminating the sale. Inspectors may report a problem with a fossil fuel appliance. Two such gas appliance problems came to light recently where the issues reported were not founded and further inspections were required by others.

Furnace condemnedThe first one was a home in Toronto where theinspector stated that the modern high efficiencyfurnace was not safe and required replacement due toa heat exchanger failure. This model has had primaryfailures in the past caused in part by impropermaintenance and/or restricted airflow from tightfilters, A/C coil installs, etc. It was assumed by thehome inspector upon his viewing that a failed heatexchanger was causing an intermittent loss of theflame signal. The inspector’s report reflected that thefurnace was in an unsafe condition and therefore wasrequired to be replaced.

Now, as you would expect the purchaser, after readingthe report and still wanting the home, went back to thenegotiating table to deduct the cost of repairs from thealready negotiated price.

But when the seller heard the report results, sparksbegan to fly. The primary heat exchanger had beenchanged three months previously. Before any deals werealtered all parties involved met on site for inspection ofthe product. It looked well maintained and had beenserviced professionally by a registered service companycomplete with service records left with the homeownerfrom year to year.

The service call revealed the primary heat exchangerto be operating to factory specifications, a visualinspection found no faults and a combustion analyzer

test backed up the findings. What was found was theconcussion diaphragm had a small rip in it and wasallowing multiple pressure changes and airflow patternswithin the combustion box. This change in airflowwould, on occasion, flutter the pilot and cause a loss offlame signal. The pilot would recycle off intermittently.The diaphragm was replaced and all was well.

The home inspector’s findings were not warrantedand the licensed service company supplied thepurchasing homeowner with a safety report on all of thefossil fuel appliances within the home to complete thehome’s sale.

Calling in the expertThe second client went through similar steps after thehome inspector found that something was trippingthe flame roll-out switch. However, in this case, thehome inspector assisted in calling in the homeowner’sown contractor for a second opinion prior to creatinghis report.

The contractor suggested catching up on the furnace’smissed annual maintenances after first going doing avisual inspection and combustion test. When not findingany issues with either the primary or secondary heatexchangers, the furnace was dismantled and a fullmaintenance was performed.

The contractor noticed the top plate above the pilotassembly in the combustion box showed signs of themetal being discoloured as well as overheated with somedistortion. He also noticed that the outer face of the heatexchanger vestibule at the point of flame entry showedsigns of decolouration. This suggested there was someflame impingement, but why would this happen overtime with no recent changes?

The tech found that during the original installation

the gas pipe didn’t fit properly, so the installer lifted itto align it with the gas valve without re-hanging it.Over time this added stress allowed the manifoldinside the furnace to distort or change its alignmentwith the burners, changing the flame directionentering the heat exchanger and causing flameimpingement. During long heating cycles thisimpingement was transferring heat to the roll-outswitch and knocking it out.

This has been a common finding with individuallyganged in-shot burners both in residential and roof-topfurnaces due to gas pipe positioning. By performing themaintenance and adjusting pilot flame height andrealigning the burners, as well as addressing the install ofthe gas piping, all was made right, again saving thehomeowner a costly furnace change-out.

When dealing with fossil fuels the unlicensed homeinspectors need to bring in a licensed and knowledgeableheating contractor if there’s any indication of a problem.Prospective homeowners often consider the report asgospel.

I just had a call from a homeowner in southernOntario; it seems the local “energy auditor” hadrecommended that to save energy the HRV exhaustshould be blocked on the outside of the home! Thebalanced unit was dumping heated air to the outdoors!What next? Where do these people come from? ✚

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 23

■ Heating

the Inspector!

Bob BettlesHVAC author and trainer Robert

(Bob) Bettles is technical service

adviser and product trainer for

B&B Trade Distribution Centre.

He can be reached at

[email protected].

Brian GuttormsonHVAC author and trainer Brian

Guttormson is technical service

advisor for Trent Metals Ltd.

(Supply). He can be reached at

[email protected].

By Bob Bettles and Brian Guttormson

Yikes, would this pass inspection? The direct ventgas fireplace was sucking in exhaust from thewood fireplace at the centre and oil furnace onthe right.

But when the sellerheard the report results,sparks began to fly…

To inspector not to inspect

Page 24: Plumbing Hvac Jan Feb 2012

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Page 25: Plumbing Hvac Jan Feb 2012

Most people are familiar with thepropane fridges installed inrecreational vehicles, although notmany understand why they work.How do we convert hot to cold? As it

turns out, there are many different types of machinesthat can do this; they work well and they have beenaround for a very long time. Recently, because of theirapplication in heat recovery and their integration intosolar installations, these technologies have garneredrenewed interest in both the refrigeration and airconditioning fields.

The absorption cycle is by far the most popular heatpowered refrigerating cycle. Whether it’s a lithium-bromide chiller or an RV fridge, almost everyone hasbeen around an absorption refrigeration system.Thermodynamically speaking, the absorption cycle isactually quite similar to the vapour compression cycle. Ifyou were to draw a schematic of a vapour compressioncycle, all that would be required to transform it to anabsorption cycle would be to replace the compressorwith a generator, absorber and pump.

How it worksIn order to understand absorption, let’s go through thebasic single effect cycle in a bit of detail. Just like atypical vapour compression cycle, refrigerantevaporates and removes heat from some type of a load.This low pressure vapour moves to the absorber where

it comes into contact with an absorbent and is absorbedinto the fluid. This solution is then pumped to thegenerator where heat is added from a fuel source such asa flame or hot water. This heat evaporates therefrigerant out of the absorbent so that almost purerefrigerant travels to the condenser.

The condenser operates just like a condenser in avapour compression system and the refrigerant isreturned to a liquid state. The liquid refrigerant travelsthrough an expansion valve and returns to theevaporator to complete the cycle.

This process is driven by four separate temperatures:the temperature of the heat source in the generator, the

temperature of the cooling medium used for thecondenser, the temperature of the cooling medium usedfor the absorber and the desired temperature of theevaporator. Understanding how these temperaturesaffect performance is very important for selecting theproper system.

Performance and inputThe performance of an absorption cycle is most directlyrelated to the temperature of the generator input. Ahigher input temperature to the generator means ahigher coefficient of performance (COP).

To put it in perspective, a typical single effectabsorption air conditioning system might have a COPof 0.6. That means for every 1000 Btu/h of heatgenerated by burning natural gas, a cooling effect of 600Btu/h is realized. Increasing the temperature allows usto use a double-effect machine. A double-effectmachine uses the heat from the condenser to operate afirst stage/low temperature generator that is piped inparallel with the high temperature generator. The COPof a double-effect machine is in the range of 1.0, asubstantial improvement.

On the other hand, if we lower the input temperaturethe COP drops very quickly. At approximately 160ºF theCOP of most absorption machines drops to zero. Theother temperature that plays a key role in theperformance of the absorption cycle is the temperatureof the cooling medium. Almost all absorption units inrefrigerating facilities and large commercial buildingsuse cooling towers to reject the heat of the absorber andcondenser. As the temperature of the cooling mediumincreases, the cooling effect drops dramatically.

In reality, as it is with almost all thermodynamiccycles, it is the temperature difference between the “hot”and “cold” that affects the performance, not theindividual temperatures. Absorption systems are a little

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 25

■ Refrigeration

Refrigeration from heatAbsorption chillers draw attention as solarphotovoltaic technology evolves

By Greg Scivener

Please see ‘Cooling’ on page 27

The absorption cycle converts heat energy into refrigeration.

This solar powered absorption system provides cooling for a Public Health Agency building in Barcelona, Spain. (Photo by Aiguasol, http://aiguasol.coop/en/)

Page 26: Plumbing Hvac Jan Feb 2012

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Page 27: Plumbing Hvac Jan Feb 2012

more complicated because they have four differenttemperatures that interact.

The right refrigerantOne other factor in the selection of an absorptionmachine is the refrigerant and absorbent. The mostcommon fluids used in absorption machines designedfor commercial/industrial refrigeration is ammonia-water. Ammonia is easily absorbed in water and thesesystems can generate temperatures below freezing foruse in industrial and commercial facilities.

In air conditioning applications, the lithium bromide-water combination is far more common. In thiscombination, the water is the refrigerant and is absorbedinto the liquid lithium bromide solution. Lithiumbromide machines can’t produce temperatures belowfreezing, but they don’t have the toxicity inherent in anammonia system.

ShortcomingsAbsorption systems fell out of favour mainly because oftheir performance. We’ve been discussing COPs in therange of 0.6 to 1.0, vapour compression machine oftenhave COPs above 4! Even though electricity is moreexpensive than natural gas and it’s not really fair to

compare the two directly, it is most often not economicalto use absorption technologies in a standardrefrigeration or air conditioning application.

However, because of their extremely low electricalrequirements, absorption chillers are frequently used inhospitals and other facilities where the cooling system isrequired to run on back-up electrical generators. They arealso present in a number of office buildings and industrialfacilities. In most places, absorption chillers in both havebeen only a small niche market for the last few decades.

Refrigeration from the sunSo why are we so interested in absorption technologynow? As solar photo voltaic collectors evolve andbecome more popular, and as increasing energy costsmake heat recovery more viable, the popularity of heatpowered refrigerating cycles is increasing dramatically.

There are now small 1-5 ton residential and lightcommercial absorption chillers that look almostidentical to outdoor condensing units. The prices forsome of these small systems are in the tens of thousandsof dollars, but as competition shows up in themarketplace these prices will ultimately come down.Breweries and other industrial facilities that generatelarge amounts of waste heat and require cooling for theiroperations are increasingly interested in heat poweredrefrigeration as an option to reduce their energy use.

Even supermarkets are looking at small tri-generationunits using absorption cycles. The unique andinteresting applications for different types of heatgenerating refrigeration are almost limitless!

In the next issue, we will talk about adsorption andejector technologies, two other heat poweredrefrigeration cycles becoming more viable for bothrefrigeration and air conditioning projects. ✚

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 27

The Mascot II is a stylish, intelligently designed, combination boiler& water heater from Laars Heating Systems. Its 95% plus efficiencylowers operating costs and the “zero clearance installation" allowsit to fit just about anywhere.Homeowners love the quiet, dependable, and energy savingoperation of the Mascot II. This wall-hung, compact powerhousehas ample output for both home heating and a continuous supplyof domestic hot water.Contractors appreciate the Mascot II for its service-friendly designand fully packaged system components that allow faster installtimes compared to other units on the market.Included components can save contractors hundreds of dollars inmaterial and labor costs and help to reduce installation errors.The Laars Mascot II, Simple - Quiet - Reliable - Green, exactly what you've been looking for!

More information at www.laars.com/MascotII

THE LAARS® MASCOT®II

www.Laars.com | Built to be the Best™ | 800.900.9276©2012, LAARS Heating Systems. All rights reserved.

STAR QUALITY, POWER AND PERFORMANCE!

■ Refrigeration

Cooling from the sunContinued from page 25

Greg Scrivener is project anddesign manager for a PolarRefrigeration Service Ltd. inSaskatoon. He is a journeymanrefrigeration mechanic, a licensedgas fitter, holds RSES CMSdesignation in commercial

refrigeration and is a mechanical engineer in training.He can be reached at [email protected].

As increasing energy costs make heat recovery more viable, the popularity of heat powered refrigerating cycles is increasing dramatically.

Page 28: Plumbing Hvac Jan Feb 2012

Don’t got it? Don’t sweat it!

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Page 29: Plumbing Hvac Jan Feb 2012

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 29

Urban collectionThe new Delta Faucet Trinsic collection strikes a balance be-tween form and function in popular urban and Europeandesign styles. The collection includes pull-down faucets witha two-function wand and deck-mount models, along withpulldown kitchen and bar/prep faucets with Delta’s optionalTouch2O technology that allows the homeowner to startand stop the flow of water with a simple tap on the faucetspout or handle. Finish options include chrome, ArcticStainless and Champagne Bronze.Delta Faucet u www.deltafaucet.ca

Decorative vesselsKohler has introduced four new Kallista vessel sinks –Obidos, Trinidad, Coimbra, and Wavelet. Each is de-signed to give a great artistic presence in the lavatorywhile maintaining functionality and long-lastingcraftsmanship. Available in various sizes and shapes,they are available in traditional or white satin bronzefinishes. Kallista is known for its designs of decorativeplumbing products, offering faucets and fixtures forwhole-bath solutions.Kohler u www.kallista.com

■ Faucets & Fixtures

The new GrohFlex universal valve system fromGrohe is designed to reduce the complexity ofshower installations – from a basic tub-showersetup to a multi-function, custom shower.

This one-size-fits-all, rough-in boxaccommodates all GrohFlex Bath Solution Kits,which include trim coupled with an integral four-port control module valve, including servicestops. Connections to the hot and cold ½”water supplies and the outlets are made via theinstallation box. Once the installation box issealed, leaks can only flow through the front ofthe box and down the outside of the wall,eliminating potential leaks inside the wall. Thebath kit is “plugged into” the rough-in box tocomplete the installation.

There are three style ranges (Authentic,Timeless and Cosmopolitan) in four finishes(chrome, brushed nickel, polished nickel and oilrubbed bronze). This trio of styles fits one of fiveBath Solution Kits for standard or custom showerinstallations. Three of these use thermostatic(THM) valves while the other two featurepressure balance valves(PBV): • Single Function THM and PBV: designed for a

single-outlet shower or tub/shower installationwhen the tub spout includes a built-in diverter.

• Dual Function THM and PBV: designed fordual-outlet applications with a showerheadand a hand shower; or either of these plus atub spout without a built-in diverter.

• Custom Shower THM: designed for multi-outlet showers with a flow rate thermostatdelivering 14 gpm. This kit controlstemperature only; separate volume controlsare required for each outlet.An integrated back channel for the water to

flow through the valve to the showerhead, whenthe spout diverter is activated, saves time forplumbers.

“We anticipate GrohFlex to sharply reducewholesaler inventories and bolster servicelevels by transforming a complex install withvarious components into a safer and easierprocess,” said Stan Nickell, Grohe Americasenior product manager.

The GrohFlex universal valve system simplifies a complex installation.

Japanese Technology at Work

AutomaticPipe Threading Machines

Pipe & HVAC Tools Contact us for a wholesaler near you. Raptor Cutting Tools Inc. 1-877-727-2888 Email: [email protected] Web: www.raptorcutting.com Western Sales:Delaney & Associates Tel: 403-589-6565

Asada Threader Features • ½"-2" Ridgid® Style Dies • Light Weight • Automatic Die Head • Built In Reamer • Through Head Oiling • Built in Pipe Cutter • 2 Year Warranty

B25 ( ½"-1"-Cap.)

Model B100 (½"- 4" Cap.)

Model B80 (½"- 3" Cap.)

Internal Nipple Chucks

B50 ( ½"-2"-Cap.)

Asada Automatic Die Head

Roll Grooving Attachment

Product ProfileUniversal rough-in valve system

Grohe’s universal rough-in speeds customshower installations.

Page 30: Plumbing Hvac Jan Feb 2012

HANDS DOWN A MORE RESPONSIVE FAUCET.

Delta® electronic faucets and flush valves with H2Optics™

Technology operate consistently, time after time, regardless

of interference factors such as dark clothing or lighting

conditions. All electronic faucets and flush valves featuring

H2Optics Technology are water efficient*—contributing to

LEED® certification. And, all Delta commercial products

are backed by the industry’s best 5-year limited warranty.

Give a hand to more responsive electronic faucet technology.

Another way that Delta is more than just a faucet.

deltafaucet.ca/H2Optics

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* Water-Efficient Product—Lavatory faucets: flow rate of 1.5 gpm versus Industry Standard ASME A112.18.1/CSA B125.1 of 2.2 gpm.

Flush Valves: water closet flush valves of 1.27 gpf and urinal flush valves of 1.0 gpf versus Industry Standard ASME 112.2/ CSA B125.3.

Page 31: Plumbing Hvac Jan Feb 2012

Better communicationGeneral Pipe Cleaners has upgraded its popular Gen-Eye SD compact video pipe inspection/location system.It now includes both a SD Card Reader and a SD/USBadapter to quicklytransfer video files to alaptop computer in thefield. An eight-inch LCDcolor monitor providescrisp, clear pictures and afull keyboard makes on-screen titling easy. All aresafely contained in apadded 10 lb. package.General Pipe Cleaners u www.drainbrain.com

Power quality analyzerElectrical power qualitycan make a significantdifference in the opera-tion to today’s highly ef-ficient HVAC systems.The new Fluke 430 SeriesII three-phase powerquality and energy ana-lyzers directly measureenergy wasted in electri-

cal systems due to power quality issues and calculatethe cost. They have up to 32 GB (8 GB standard) mem-ory, a swappable SD memory card and USB connec-tivity for longer power and energy logging and fasterdata download.Fluke Canada u www.flukecanada.ca

Sheet metal crimperThe new Turbo Crimperfrom SDI Supplies is aquarter-inch impactdriver accessory that isdesigned to quicklycrimp metal and spiraltube at the jobsite. Crimping the average metal ducttakes about 10 seconds without the hand strainassociated with manual crimping pliers while making asuperior crimp, reports the manufacturer. It will crimp30 through 22 gage galvanized duct tube with noadjustment and weighs 1.3 pounds. Contractors can seeit at CMX-CIPHEX 2012 in Toronto this March.SDI Supplies u www.sdisupplies.ca

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 31

■ Tools & Instruments

The new Ridgid Manual Hydraulic Benders aredesigned for precise cold bending of standard gaspipe (DIN 2440), black steel schedule 40 (ASTMA53) pipe and stainless steel schedule 40 pipe.

Bending angle indicators show, in real time, theangle the pipe is bent to, reducing the number of

starts, stops and pipe removals to takemeasurements. A unique handle design minimizesthe number of strokes to advance the piston andrequires less effort per stroke. The benders’single-circuit hydraulic system with a return springprovides better control of the ram. Durable pistonseals prevent premature leaks and maximizeuptime, reports the manufacturer.

The benders are available in two models: thesmaller one for one to two-inch pipe and thelarger version for one to three-inch pipe.

Ridgid offers anumber ofaccessories tocater to specialbending applications alongwith a lifetime warranty.RIDGID u www.ridgid.com

Product ProfilePrecision pipe bender

Ridgid pipe benders simplifythe bending of steel gas pipe.

Page 32: Plumbing Hvac Jan Feb 2012
Page 33: Plumbing Hvac Jan Feb 2012

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 33

Ford has will replace its long-running E-Series – or Econoline– with a new full-sized cargo vanbased on its European

counterpart.The new Ford Transit van will

be manufactured at Ford’s Kansas City assembly plant, which currentlybuilds the F-150 pickup. Expected to be introduced either as a 2013 or 2014 model, Ford says the next

generation Transit will be 300 lbs. lighterthan the E-Series and get 25 percentbetter fuel economy.

“The new Transit will be the smartest,most fuel-efficient way to move cargo orpeople,” promised Tim Stoehr, Fordcommercial truck marketing manager.

The Transit has a long history inEurope dating back to 1965 and isalmost as old as the Econoline, whichdebuted in 1962. The main competitor

for the most recent version of the Transitis the Sprinter.

The company remains tight-lippedon the van’s mechanical details. Thecurrent European version has a four-cylinder diesel engine with either front,rear or all-wheel-drive. The NorthAmerican version is expected to beavailable with a gasoline engine. SomeE-Series configurations, likely the largervans and cab-chassis units, will be

available until the end of the decade.Ford is building a special pothole-

ridden test road at its Michigan ProvingGrounds north of Detroit to ensure thenew Transit can withstand rough roadsand construction sites.

The company has sold over six millionTransit vans around the world since1965. It introduced its small TransitConnect van, also a European model, inCanada a few years ago. ✚

■ Trucks for the Trade

Full-sized Transit van will replace Ford E-SeriesThe full-sized Ford Transit has a long history in Europe. The long-wheelbase version competes with the Sprinter.

• Simple connection between appliance and Type B Vent• No elbows required• Expands 1’ to 3’ or 2’ to 5’•• Limited Lifetime Warranty• 360° Flexibility

Expandable Flexible Gas Vent Connector

Model EFC

Call Customer Service Today 1.800.263.9308www.selkirkcorp.com

METALBESTCHIMNEY & VENTING SYSTEMS

Page 34: Plumbing Hvac Jan Feb 2012

To learn more, call 800-631-8138 or visit www.genetronperformaxlt.com. © 2010 Honeywell International Inc. All rights reserved.

Industry-leading Genetron® Performax™ LT refrigerant is the clear leader in its field.

If your bottom line is a better bottom line, no other supermarket refrigerant comes close.

From keeping fresh food fresher longer to energy savings to eco-friendly performance, the

list of reasons to choose Genetron® Performax™ LT over R-438A or R-407A refrigerants

goes on and on. Genetron Performax LT offers industry-leading capacity, industry-leading

efficiency and low GWP values versus other popular supermarket refrigerants. This saves money in new installations

and in R-22 retrofit projects. Plus, a mass flow that identically matches R-22, eliminates expensive expansion valve

changes and adjustments in retrofit applications while maintaining superheat performance which protects costly

compressors. So go with the gold standard. Go with Genetron Performax LT.

Maximize Performance with Performax LT.

Brenntag Canada Inc. Exclusive distributor of Genetron® refrigerants in Canada

Ontario & Western Canada: Tel. No. (416) 243-9615 Fax: (416) 243-9731 Quebec & Maritime Provinces: Tel. No. (514) 636-9230 Fax: (514) 636-8229

top performer

Page 35: Plumbing Hvac Jan Feb 2012

Crane Supply held an opening celebration atits new Canadian headquarters and SupplyHouse location on Dec. 8.

Located at 141 Royal Group Crescent in northwestToronto (Vaughan), the new 122,000 square footfacility includes 50,000 sq. ft. of indoor pipe storage.

Indoor storage of steel pipe results in clean, rustfree pipe with legible heat numbers forcorresponding mill test reports, which is a majorcontractor requirement, noted company president

Tom Frazer.Increased shelf space allows better organization

and placement of products, speeding up picking andshipping time. The company has also increased thesize of its delivery fleet. An open-concept customerservice area promotes easy and immediatecommunication with inside sales reps.

Over 70 customers and industry personnelattended the opening ceremony. For moreinformation, visit www.cranesupply.com.

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 35

■ People & Places

J.W. “Bud” Bird, founder of wholesaler J.W. Bird andCompany Ltd., Fredericton, N.B.,was named to the New BrunswickBusiness Hall of Fame at a galaevening Nov. 15 at the FrederictonConvention Centre.

Superior Radiant ProductsLtd., Stoney Creek, Ont., has ap-pointed Mel Sauvé to the positionof business development managerand Gary Dummer as national salesmanager, Canada.

Dick Thomas, AtlasCare,Oakville, Ont., has been electedchairman of the Toronto Chapter of theHRAI Contractors Division. DavidWeishuhn, Blue Flame Heating &

AC, Toronto, has stepped down after six years.John Beck has joined Madok Manufacturing,

Brantford, Ont., as a partner in the company, taking onthe role of vice president and general manager.

Crane opens new Canadian headquarters

PeopleThe

In Memoriam • Edward R. HardisonLongtime Canadian Institute of Plumbing & Heatingpresident Edward “Ed” Hardison succumbed to cancer onDec. 15. Numerous friends and industry personnelattended a memorial service at Grace Gospel Church inNiagara-on-the-Lake on Dec. 21. Ed was CIPH presidentand general manager from 1986 to 2002 when he retired.Previously, he was with Moldex in Barrie, Ont. He wasmarried to wife Anita for 48 years. Following retirement toVirgil, Ont., he was heavily involved in his church and manyother volunteer activities. In addition to Anita, Ed leaves sonJeff and is survived by his father, five brothers and one sister.

12" Wide Trench Drain Just Got a Whole Lot Easier

A Watts Water Technologies Company

Introducing the New Dead LevelTM DX 12" Trench Drain

Customers who have used our unique Dead Level™ Trench Drain system call it the best

trench drain ever. And understandably so. The Dead Level™ system cuts installation

time by more than half, and makes floating, pinching, and misalignment things of the past.

Now we’ve made a great product even better.

Dead Level™ Trench Drain is now available 12” wide. With radiused

bottoms and smooth interiors, the new DX channels generate maximum

hydraulic flow.

For additional information,

click on over to wattscanada.ca

Crane’s Dennis Lisotti and Kaydee Ali greetedopen house visitors at the expanded customerservice counter.

Mel Sauve

Gary Dummer

Madok Manufacturing, Brantford, Ont., haspurchased the Brantford operations of Custom CoilsCanada. All employees and equipment have beenmoved to the new Madok plant in Brantford. TerryMurison has joined Madok as business developmentrepresentative.

Barclay Sales, Port Coquitlam, B.C., has beenappointed manufacturer’s representative in B.C. andAlberta for Speakman Company, Newcastle, Delaware.

CompaniesThe

Page 36: Plumbing Hvac Jan Feb 2012
Page 37: Plumbing Hvac Jan Feb 2012

Canada’s largest mechanical show willreturn to Toronto this spring. Over 460exhibitors have booked space for CMX-CIPHEX 2012, scheduled to take place atthe Metro Toronto Convention Centre,

North Building, March 22-24.Today’s trade shows must compete with readily

available product information on the Internet, butcyberspace is a no substitute for seeing the products liveand talking directly to the manufacturers, remarkedshow chairman David Morden, president and CEO ofMorden National Sales & Marketing Inc., Wallaceburg,Ont. “You can never replace that face time.”

Contractors, engineers and building managementpersonnel will have the opportunity to see productscovering all facets of the mechanical industry from allover the world. Show doors will open each day at 10 a.m.Thursday through Saturday. The latter allows anyone

that just can’t get down during the work week anopportunity to visit, noted Morden.

Sustainable technologies highlightedContractors will see a considerable change at CMX-CIPHEX this year as it embraces sustainabletechnologies such as solar, geothermal, grey water re-cycling and drain water heat recovery. Many of thosewill be highlighted in the new Emerging Technolo-gies Centre.

“There’s a much greater awareness for renewableenergy utilization and emerging technologies now thanin past years and our show committee felt that it had tobe very much a part of our 2012 exhibition,” remarkedMorden. The New Products Showcase will return withmanufacturers displaying their latest technologies andvying for prizes.

As well, three special morning forums will highlightchanging technologies. These kick off at 8 .m. Thursdaywith a Roundtable on Renewable Energy featuringindustry experts in a panel discussion moderated byDavid Miller, former Toronto mayor and counsel forinternational business and sustainability with law firmAird & Berlis. They will discuss how things like solarair systems and geothermal fit in with conventionalHVAC technologies.

The Symposium on Smart Controls will take place at8 a.m. Friday with keynote speaker Andrew Pride, vicepresident of conservation for the Ontario PowerAuthority. He will lead a team of speakers that will takeparticipants through the next wave of energy efficiencyadvancements in plumbing and HVAC/R.

Also on Friday at 8 a.m., hydronic heating engineerand author John Siegenthaler will talk about integratingsolar into hydronic heating systems. He will give anumber of examples and show how these systems canbe built with readily available hardware.

There is a fee for these special symposiums and pre-

registration is required. Visit www.cmxciphexshow.comfor more information.

Learning forumIn addition to the symposiums, the Learning Forumwill return jam packed with free seminars. Topicsinclude things like Getting more from your buildingenergy management control system, Adaptingcontracts to facilitate the Building InformationModeling (BIM) process, Gasification and wood heattechnology, LEED strategies in incorporatingsustainable design practices, Water re-use strategiesfor residential and commercial applications, 2012building code changes, Improved performance forexisting buildings through commissioning, Legionella – plumbing prevention and Copperrecommendations on design velocities for watersystems, to name just a few.

And, as in the past, one lucky CMX-CIPHEX visitor willgo home with a new full-sized van – a Nissan NCVoutfitted by Farmbro Inc., Mississauga, Ont., and equippedwith a custom GPS package from PinPoint GPS, also inMississauga – altogether a prize worth over $40,000.

For more information, call 1-800-282-0003 toll-freeor visit www.cmxciphexshow.com.

Habitat gala eveningThe Canadian Institute of Plumbing & Heating (CIPH)and the Heating, Refrigeration and Air ConditioningInstitute of Canada (HRAI) produce the show. They willonce again hold their Habitat for Humanity GalaEvening on the evening before the show. It takes placeMarch 21 at the Fairmont Royal York Hotel. Renownedimpressionist Martin Dube will entertain and a silentauction will be held, with all proceeds going to Habitatfor Humanity Canada.

Visit www.ciph.com or call 1-800-639-2474 toll-freefor information.

www.plumbingandhvac.ca January/February 2012 – Plumbing & HVAC 37

■ Coming Events

MARCH 11-16: Canadian Construction Association, 2012 Annual Conference, Savannah, Georgia. Call (613) 236-9455 or visit www.cca-acc.com.

MARCH 22-24: CMX-CIPHEX 2012, Metro Toronto Convention Centre, North Bldg. Call1-800-282-0003, e-mail [email protected],or visit www.cmxciphexshow.com.

APRIL 27-29: Kitchen & Bath Industry Show (KBIS), McCormick Place, Chicago. Call 1-508-743-0528or visit www.kbis.com.

MAY 2-3: MEET Show, Moncton Coliseum Complex, Moncton, N.B. Call 1-888-454-7469, e-maiil [email protected], orvisit www.masterpromtions.ca.

JUNE 12-13: Oilheat 2012, the Canadian Oil Heat Association, Fairmont MontTremblant, Mont Tremblant, Que. Call (905) 946-0264, e-mail [email protected], orvisit www.coha.ca.

Canada’s largest mechanical show returns

CalendarEvents

CMX-CIPHEX 2012 to highlight sustainabletechnologies

Bradford White ............................................27Carrier Canada ..................................4, 24, 39Cash Acme ..................................................31CMX/CIPHEX 2012 ......................................36Delta Faucet.................................................30General Pipe Cleaners..................................12Giant .............................................................9Honeywell/Genetron Div. .............................34Madok Mfg. ................................................17Mobilio ....................................................5, 38Napoleon.....................................................22

Noble...........................................................28NTI.................................................................6Raptor Cutting Tools ....................................29RIDGID.........................................................56Rinnai ..........................................................32Selkirk Canada.............................................33Taco Canada..................................................2Uponor Ltd. ...................................................8Viega...........................................................14Viessmann ...................................................16Watco............................................................7Watts Industries ..........................................35Woodford....................................................26Zurn Industries.............................................19

ADVERTISERSINDEXto

Page 38: Plumbing Hvac Jan Feb 2012

If a customer paid you in cash for a job and overpaidyou by $100 would you:• Tell the customer and give it back,• Share it with your business partner,• Put the $100 through the books and record it as a sale,• Put the full cash sale through the books,• Pocket the $100 or,• Pocket the full sale.

“White collar crime” comes in a variety of disguises,everything from scamming insurance companies toemployee theft and theft by third parties.

Did you ever hear the story of the man who managedthe church collection every Sunday? He hadn’t missed aSunday in 10 years. He was there for every collection.One Sunday he was very sick and couldn’t make it. Thecollection plates were about 25 percent heavier than theyhad ever been before.

I was prompted to write this article because of onethat I read in The Globe and Mail Dec. 15 titled Don’tfall victim to an inside job.

Some key points in the article were:■ The Association of Certified Fraud Examiners inAustin, Texas says organizations lose about five percentof their revenue each year to fraud. That’s approximately$2.9 trillion U.S.■ Employees commit almost 60 percent of workplacefraud.■ Small businesses are more vulnerable to fraud thanmedium or large companies.

“The actual incidences and costs of fraud areprobably higher than reported statistics would indicate”

said Pamela Murphy, professor of accounting at Queen’sUniversity in Kingston, Ont.

The article goes on to provide insight into types offraud, why it is caused and how to minimize it. It is wellworth reading. However, I want to take the topic furtherand not only explore employee fraud but other areas offraud that impact contractors.

Practical controlsHaving run my own accounting and consulting practicefor contractors since 1984 I have come across manyinstances of fraud within the industry and have devisedpractical controls to minimize a company’s risk andexposure. Prior to that I was the accountant in severalcontracting companies and came across other instancesof fraud. Therefore the purpose of this article is toidentify some frauds that are very common in ourindustry and show how to avoid them where possibleand how to minimize the impact when they do happen.

Employee fraud and cashThis is a three-part series, so let’s start with employeefraud and cash. Here are a couple of instances that twoof my clients faced recently:

By pure coincidence one of my clients phoned me asI was writing this article to ask for advice. Hisbookkeeper had taken him for $24,000. His liabilityinsurance doesn’t cover it and the bank has said it hasno responsibility for his loss (his lawyer tends to agreewith the bank’s position). The bookkeeper wouldprepare a cheque for a supplier for a relatively smallamount, say $900. He would sign it. She would thendestroy the cheque and write a cheque payable to herselffor the exact same amount. When the supplier called to

ask for payment she would delay him with a variety ofexcuses. She did this with a broad range of suppliers overan eight-month period.

She has no assets and so his chances of recovery arelow. However, she will be charged with a criminal offenceand he will start a civil suit against her in small debtscourt. He did initially hire her through a temp agencyand he will also try to recover something from them.

One company, here in B.C., issued a cheque to asupplier each month for approximately $400,000. Thebookkeeper deposited the cheque into her own creditcard account and paid the supplier using her personalVISA. She accumulated the air miles. The companycould have likely arranged better payment terms exceptthat the supplier was getting paid by credit card.

VISA never asked why the employee was depositingcheques of up to $400,000 in her VISA account whichwere payable to the supplier. The supplier never askedwhy the company was using an employee’s personalcredit card to pay for those purchases.

Eventually the company figured this out and theemployee was subsequently dismissed but no chargeswere ever laid. The fraud was never reported. I wonderwho her next employer was and how he faired out.

Mind your bankThere are some very simple controls that you should putin place immediately to protect you from fraud beingperpetrated within your bank account.

All cheques should have two signatories to makematters more difficult for the potential fraudster.

Learn how to review your bank reconciliationstatement. Ask your external accountants to set this upfor you and sign off on the bank reconciliation eachmonth. Make sure you do each account. Never producea set of monthly financial statements until the bankreconciliation has been completed.

Always open the bank statement yourself. Do notallow your bookkeeper to do so. Review the statementand the copies of the cancelled cheques and ensure thatthey make sense. Pick one or two that you don’t recalland ask to see the backup. Also look at any other “slips”or standing orders that are on the statement.

Check your accounts payable to see if there areoverdue accounts that you think should have been paid.By paying these accounts on time you will likely get asettlement discount and reduce the chance of moneybeing diverted from that supplier.

Likewise look at your accounts receivable and ensurethat the accounts shown have not been paid.

Implement these processes not because you don’ttrust your existing people, but because you want to putsystems in place to build for the future. It is important torely more on systems and less on people. This willenhance the value of your business. ✚

38 Plumbing & HVAC – January/February 2012 www.plumbingandhvac.ca

■ Shop Management

Ronald Coleman is a Vancouver-based accountant, management con sultant, author and educator spe cializing in the constructionindustry. He can be reached by e-mailat [email protected].

AN INSIDE JOBProtecting your business from dishonest employees

By Ron Coleman

Dispatching

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Invoicing

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Mobile Field Service Software for companies with an eye on the future!

mobilio inc. 866-756-5050www.MyMobilio.come-mail: sales @ MyMobilio.com mobilio

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