the procurement issue · 2019-09-04 · the official publication of the grand valley construction...

THE OFFICIAL PUBLICATION OF THE GRAND VALLEY CONSTRUCTION ASSOCIATION • VOLUME 5 • ISSUE 5 • SEPTEMBER/OCTOBER 2016

The Procurement IssueFeaturing stories on the importance of standardized contractspecifications and language, reasons for (and solutions to) municipalproject delays and cost overruns, and an update on prompt payment. Plus, a special tribute to the 50th anniversary of Conestoga College’s ConstructionEngineering Program!

GVCA-Journal_September_October_6.qxp_Layout 1 2016-09-08 3:57 PM

The Grand Valley Construction Association is an approved sponsor of the WSIB Safety Group Program.

Improving safety and improving the bottom line. Through the Safety Group program, the GVCA and theWorkplace Safety and Insurance Board (WSIB) are working together to help you do just that.

By joining the GVCA Safety Group, your business will gain access to a network of firms all dedicated toimproving workplace health and safety by networking, sharing best practices and pooling their resources.Safety Groups gives your company a competitive advantage by managing your WSIB costs and providesan opportunity to earn a rebate of up to 6% of your WSIB premiums.

The program runs for one calendar year, beginning in December, and includes:• 9 monthly working meetings• 2 hours of “one on one” consulting with safety group facilitator• Templates (first year members only)• Industry expert and guest presentations• Year-end binder review to confirm completeness of work• Audit ready

For more information, please contact [email protected] or call 519-622-4822 x 120

In 2013, the GVCA was the highest scoring group among construction safety groups in Ontario andmembers received a total rebate of $477,193. In 2014 the GVCA was awarded the Canadian ConstructionAssociation’s National Safety Award.


GVCA Journal September/October 2016 3

The official publication of theGrand Valley Construction Association

SEPTEMBER/OCTOBER 2016VOLUME 5, ISSUE 5

Publisher: Martha George

Editor: James Raiswell

Contributors: Sandra ArthursPatrick FarrerPaul KowalenkoChristina LavecchiaMichael LetourneauMatti Siemiatycki

Layout and design: Patrick KilbornMoreSALES

Photography: Joseph Paul Bergeljpbphotography.com

Advertising sales: Sandra [email protected] 519-622-4822 x129

Subscription inquiries and letters to the editor: [email protected]

GVCA Journal is published six times yearly by theGrand Valley Construction Association ©2016. All rights reserved.

Canadian Publications Mail Product Sales Agreement #42259531; ISSN 2368-2930; in Canadian Periodical Index.

GVCA Journal subscription is a benefit of Grand ValleyConstruction Association membership and is includedin membership fees.

Magazine Subscription: Canada $28/yr (incl. 13% HST). US/International $32/yr (Cdn).

Return undeliverable addresses to:Grand Valley Construction Association,25 Sheldon Drive, Cambridge, Ontario N1R 6R8

© 2016 Grand Valley Construction AssociationAll rights reserved. The contents of this publicationmay not be reproduced by any means, in whole or inpart, without prior written consent of the publisher.

DEPARTMENTSFEATURE ARTICLES

14A Roadmap to

On Time, On Budget for Mega-Project Planning

19Rod Aitken

Ball Construction

20Conestoga’s

ACET ProgramCelebrates 50 Years

24Lean Construction Education Program

26 AN UPDATE ON PROMPT PAYMENT

30

28Standardization of Construction Specifications and Contract Language

31 2016GVCABUYER’SGUIDEBaywood

Interiors

4 MESSAGE FROMTHE CHAIR

4 MESSAGE FROM THE PRESIDENT

5 CRYSTAL BALL REPORT

6 FINANCIALFOCUS

7 LEGALISSUES

8 HR MANAGEMENT

10 TECHNOLOGY &INNOVATION

12 GVCASIGHTINGS

38 GVCA EVENTS &EDUCATION CALENDAR

38 ADVERTISERS’INDEX


MESSAGE FROM THE PRESIDENT

4 GVCA Journal September/October 2016

So why, for all the intelli-gence the world’s greatthinkers pour into technol-ogy, has no one taken thetime to design a system thatfixes the broken links in theprocurement chain? Surely

it’s within our collectivereach to create some kind ofelectronic processing systemthat gives every member ofthe construction team com-plete and transparent accessto schedule, performance

and – here’s the clincher –payment flow data.

Imagine if everyone on theproject were quickly and eas-ily able to track progress payments from submissionby the prime, to approvals by

How often have we heard the mantra, “The way of doing businessis rapidly changing?” It’s repeated so often in just about every circlethat we’re becoming deaf to it. But the reality is that disruption isoccurring across just about every business, and technology is creat-ing new opportunities for businesses to thrive. Think about the potential for things like the Internet of Things, 3D printing anddrones—the list goes on. Those that embrace change find they cando so much more with far fewer resources.

Martha George, GSC

What if there were anotherway to grow that didn’t require a massive outlay ofcash? That enabled you todeepen your team’s experi-ence, and which positionedyour company in new waysto take advantage of thatnext great project? There is.It’s called partnering.Our industry is a communityof competitors, but from

time to time, we see exam-ples of rivals joining forces todeliver a remarkable project.Think about some of the advantages of joint-venturework over, say a merger oreven capital acquisition. Itshares risk. It brings new expertise and experience intoyour company. It makes yourcompany privy to signatoryagreements it may not have

previously had in place. Ithelps with cash flow, and insulates your company (andits workers) from post-pro-ject layoffs.Partnering’s not risk free, ofcourse. Go into the endeav-our with your eyes wide openand on the considered adviceof a good lawyer. You wantto be sure boundaries andexpectations are set for both

Growth in our business is tricky. It requires capital, and in an environment where competition is tight, margins thin and workprospects not always assured, it’s a risky play.

Wes Quickfall, GSC

MESSAGE FROM THE CHAIR


Invest in Partnerships

Let’s Fix the Broken Links in the Procurement Chain

the payment certifier, to theowner paying the prime, andfrom the prime to sub-con-tractors and suppliers. Thiscould be done simply – andthink of the headaches itwould cure. Trades and gen-erals alike wouldn’t have towait for 30 days to find outtheir draws were cut, andmoney would flow fasterthan ever to every member ofthe team. Imagine that!

parties, about how the proj-ect will be bid on and exe-cuted, and how to dissolvethe relationship after theproject. But I’d argue thegood far outweighs the risk.

As always, GVCA is here tohelp. We’ll be offering ses-sions on partnering strategiesin the months to come.


The Hide House at 195Joseph St. will be redevelopedas regional offices for De-loitte, which signed a 15-yearlease on the space. The agree-ment secures the future of abuilding that was once a keypart of the Lang Tanning Co. The building will undergo acomplete restoration and

retrofit with only modestchanges to the exterior. Asurface parking lot is plannedbetween the building andVictoria Street. Project costsare estimated at $10 million. The building is located nearthe future central transit hubat King and Victoria streets,which is one of the reasons

Deloitte chose the building.It is recognizable to manypeople because of its smoke-stack, which is protected un-der the Ontario Heritage Act. The Hide House has had asignificant role in the historyof downtown Kitchener.During the First World War,195 Joseph Street producedlarge quantities of leathergoods, such as saddle materi-als for troops. Productioncontinued in this building

through the Second WorldWar where leather linings foraircraft tanks were also man-ufactured. The Lang TanningCompany ceased operationsin 1954, making The Tan-nery one of the longest run-ning businesses in the city’shistory. 195 Joseph Street is aprime example of vernacularindustrial architecture fromthe early 20th century.Next update: November 2016


CRYSTAL BALL

Crystal Ball Report: Unmatched Construction Intelligence

GVCA’s Crystal Ball Report is a unique and insightful member service. Updated daily by GVCA staff, the report tracks planned projects during the pre-bidding phases, followingthem from concept to design to prequalification, construction and completion.195 Joseph Street, Kitchener, OntarioValue: $10,000,000. Design Underway. Estimated completion: 2017


Because construction jobsinvolve a lot of movingpieces, sharing informationcan resemble a game of bro-ken telephone. Whetheryour sales department tells acustomer that an out-of-the-ordinary customization re-quest is possible, or a certainproject has gone throughcountless change orders, youneed to have a system inplace to get everyone ontothe same page. This means budgets andtimelines are communicatedefficiently, change ordersfind their way to the neces-

sary parties (without gettinglost in cyberspace) and de-lays are relayed throughoutthe pipeline so money (andtime) isn’t wasted when thenext team of contractorsshows up for a job that’s notready for them.Ultimately, this goes back toimplementing an effectivejob tracking system that letsyou track, manage and exe-cute change orders – em-powering you to reduce rework, cycle time and oper-ational delays while helpingto avoid unexpected costoverruns.

When dealing with contrac-tors, having an effective con-tract is crucial to the successof a build. A strong docu-ment – one that includessufficient detail, such as spe-cific measurement require-ments – not only clearly out-lines your expectations, butalso holds the contractor accountable for their per-formance. A weak document,on the other hand, gives less-

honest contractors wiggleroom to abuse the system –and may drastically drive upyour costs. When you take pre-emptivemeasures to address obsta-cles within your control,you’ll not only reduce job-related headaches, but you’llalso likely benefit from ahigher number of satisfiedcustomers and a strongerreputation.


FINANCIAL FOCUS

Three Steps to Reduce OperationalChallenges

1. Set up your job tracking systems correctly

Here are three steps you can take to avoid

certain setbacks—so you can focus your

efforts and resources on remedying the

unavoidable ones.

This article was written by Paul Kowalenko, Director of Operations, Grant Thornton Productivity Improvement.

Job performance and sched-ule tracking systems are in-strumental tools for any con-struction business – providedthey’re set up correctly. How-ever, if the information en-tered into a system isn’t accu-rate – or if it simply takes toolong to use the software –people sometimes resort totools outside the system(such as an Excel spread-sheet), potentially leading tomiscommunication and increased costs.To avoid this scenario, make

sure your tracking systemsare not only set up properly,but also that managementfully understands the value inusing them. It’s also criticalto outline a clear process forhow they will be used – in-cluding how to enter the in-formation, review the reportsand maintain the system.Above all, the system shouldbe designed in a way thathelps project managers andaccounting departmentsalike – and allows the busi-ness to keep projects on trackand within budget.

2. G et all stakeholders on the same page

3. Generate strong contracts

When it comes to unforeseeable opera-tional challenges, the construction industryexperiences its fair share. But while a sud-den hike in the cost of materials or an un-expected environmental issue may throwan original quote or timeline off track,many project management issues can beavoided if the proper processes, systemsand behaviours are established in advance.


can disqualify your bid before it is ever submitted.When it comes time to pre-pare your actual bid, makesure you provide all of theinformation required. Somecommon items that causeproblems are: providing thecorrect corporate name, pro-viding proof of required in-surance, and providing bidbonds and agreements forcompletion bonds thatmatch the requirements setout in the bid documents. It is also important to pres-ent your pricing informationcorrectly. Pay careful atten-tion to how the pricing isstructured and how taxes areto be accounted for. Make

sure that you provide all requested prices, and double-check your math.Once you have finalized yourbid documents, make sureyou follow the required ap-proach to submitting them.Determine how many origi-nals and copies are required,and if the bid needs to besubmitted in person, or elec-tronically, or by some othermeans. Most bids have a hardsubmission deadline thatmust be met; allow yourselftime to make sure that thebid is delivered to the properperson or location and, ifpossible, confirm with thepurchaser that it was submit-ted prior to the deadline.


LEGAL ISSUES

Ensuring that your bid iscompliant is not difficult, butit’s best to think about com-pliance from the momentyou receive the bid solicita-tion documents. The firststep is simple: read the docu-ments carefully. Each pro-curement process and formswill be slightly different. After reading the bid solici-tation documents, youshould have a good under-standing of what you have todo in order to bid properly.However, if you have any un-certainty about what’s beingasked for, seek clarification.

Answers are typically givenin writing, and made avail-able in an addendum to allpotential bidders who haveexpressed interest in receiv-ing them. It’s important tobe aware of all addenda thathave been issued.Also make sure that youcomply with any other pre-bid requirements listed inthe solicitation documents:attending a mandatory sitemeeting, or signing a confi-dentiality agreement in orderto review certain mandatorydocuments. Failure to takemandatory steps as required

WHEN BIDDING, REMEMBERTHE BASICSTo be competitive in construction, you haveto do good work at a good price. But whenbidding in a structured procurementprocess, you also have be sure to follow therules of that process. If your bid is foundnot to comply with the rules, the purchaserwill be obliged to reject it.

Michael Letourneau is a lawyer with Sorbara, Schumacher, McCann LLP in Waterloo. He can be reached [email protected] and 519-749-4606.

Preparing and submitting a compliant bid is an

exercise in taking care and paying attention to

the process set out in the bid solicitation docu-

ments. Paying attention to that process will help

the purchaser give your bid the consideration

it deserves.



HR MANAGEMENT

Highlights from the WSIAT 2015 Annual Report

According to the report, thepercentage of cases resolvedwithin nine months was alittle lower than it was in2014 (24 percent comparedto 25 percent).Finally, the tribunal con-ducted 3,052 hearings andissued 2,942 decisions. According to the report, oralhearings continued to be themost common hearing typeat 70 percent, followed by

written hearings at 30 per-cent, in 2015. Also, at thehearings, tribunal statisticsshow that injured workerswere mostly represented byparalegals (42 percent) andby lawyers and legal aid (23percent). The same trend wasalso seen for employers: 53percent were represented byparalegals and 18 percentwere represented by lawyers.

The Ontario Workplace Safety and

Insurance Appeals Tribunal's recently

released its 2015 annual report.

The tribunal is the final level of appeal

to which workers and employers may

bring disputes regarding workplace

safety and insurance matters in

Ontario. According to the report, at the

end of 2015, there were 9,435 active

cases within the notice and resolution

process stages.

The tribunal's overall intake from new

appeals and reactivations totaled 4,389

in 2015. This represented a decrease of

14 percent compared with 2014’s intake

total. The tribunal disposed of 4,256

cases in 2015.

According to the report, in2015, the top four issueswere loss of earnings (23percent), non-economic loss

(NEL) and NEL quantum(15 percent), new area of injury (7 percent) and initialentitlement (7 percent).

What were the main issues among the cases resolved?

How long did it take for a case to be resolved in 2015?


According to the report, appeals concerning employerissues, such as classifications,transfers of cost, adjustmentsof experience rating accountsand applications for SecondInjury and EnhancementFund (SIEF) relief contin-ued to form a considerablepart of the tribunal's caseload in 2015.

The tribunal often considersthe interpretation and appli-cation of the WorkplaceSafety and Insurance Board'sSIEF policy. The quantumof SIEF is usually deter-mined in accordance withthe policy matrix which isbased on the severity of theaccident and the medical significance of the pre-exist-

ing condition. The reportcites decision No. 312/15 asthe first decision to considerwhether SIEF relief is avail-able for benefits paid to aworker as a result of breachof the re-employment obli-gation. It was determinedthat re-employment pay-ments are not part of thecompensation or health care

costs that can be transferredto SIEF. Granting SIEF relief would be contrary tothe intention in section41(13) of imposing a penaltyon the employer. However,the employer was entitled toSIEF relief on loss of earn-ings benefits and to allhealth care costs paid at anytime during the claim.

2015 case highlights


HR MANAGEMENT

This article was written by Cristina Lavecchia, editor, HRinfodesk and appears on HRinfodesk.com.

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1Encourage the IT department tocollaborate

• Discourage departmentsfrom operating within silos and increase communication across disciplines.

• IT departments can provide key insights toprocurement, which canreduce costs, mitigate risks, and increase business agility.

2 Build a network of specialists invarious IT fields

• Encourage IT teams todevelop a robust, accessi-ble organizational mem-ory for all systems andcomponents within theIT infrastructure.

• Shore-up internal knowl-edge deficiencies by net-working with consultantsand other trusted advisorswho can provide counseland help with long-termstrategic plans.

3 Understand the difference betweensaving money and creating value

• Choose to invest in IT infrastructure that enablesbusiness growth, increases productivity or reduces costs over the long term.

• Look beyond the stickerprice when purchasinghardware. Consider efficiency, interoperability,durability and lifespan.


TECHNOLOGY & INNOVATION

The information technology landscape is constantly changing. Reactive businesses – thosethat jump on a technology bandwagon – can lose market share to more proactive, strategy-driven competitors. The risks of an impulsive or unsuitable decision when procuring IT hardware and software can cost a business more than the sticker price. They can createlengthy downtime, disappoint customers, and damage a business’ reputation.

Tips for Improving IT Procurement

The best strategy

to ensure that IT

procurement

meets business

needs is to stay

up-to-date on the

latest industry

trends. This re-

quires more than

a search of the

Best Buy website.

The procurement

departments that

routinely outpace

their competitors

are proactive.

They constantly

engage with inter-

nal and external

experts to find

technology solu-

tions for business-

critical problems.

Improving the procurement process

Improving the procurement process within any organization requires executive support, a hard look at purchase selection criteria, and buy-in across departments. There are three key points to remember:


TECHNOLOGY & INNOVATION


A manager’s IT procurement checklist

Effective IT procurement begins before a specification is developed. The following checklist canhelp businesses ensure that procurement decisions add value.

n Pre-purchase:Establish goals,processes and contingencies

• How should project teamsbe configured for differenttypes of acquisitions?

• How should changes inscope and changes in or-ders be handled?

• What are the importantcosts-versus-budget con-siderations?

• What are the most effec-tive methods of obtainingexecutive commitment?

n The buying process:Effectively manage the process start-to-finish

• What processes in the ac-quisition phase can be au-tomated, minimized oreliminated?

• Can we outsource all orpart of the procurementprocess?

• What milestones orcheckpoints are critical toensuring the purchasestays on track?

n Post-purchase: Begin with the end in mind

• What are some provisions for early termination and renewals?

• What are the best methods for assessing vendor strategies for ongoing maintenancecosts?

• What are the availableend-of-life strategies?

This article was written byPatrick Farrer, a technicalsales associate with Pund-IT.For more information, call519-342-4004 or visitwww.pund-it.ca.

Ensure that IT procurementmeets your business needs byconsulting with the experts.Photo courtesy Pund-IT.


GVCA SIGHTINGS


LinC Golf Tournament



GVCA SIGHTINGS

Kevan Thompson Industry Leader,

Vice President Construction

Phone: 519-650-6363 ext. 41552 Toll free: 1-866-578-6030

[email protected] www.cowangroup.ca

CONSTRUCTION

ConstructionInsurance & Surety Specialists

programs

surety solutions

management team

WinC Golf Tournament



However, over the past few years, themedia has tallied millions of dollars inrising costs and years in schedule delayson municipal infrastructure projects,such as the construction of the SpadinaSubway extension, the redevelopmentof Union Station, the purchase of newTTC streetcars, the construction ofLansdowne Park Stadium in Ottawa,

and the building of new city halls inVaughan and Guelph. International evi-dence suggests the bigger the project,the more likely it will go over budgetand miss its deadlines. The outcomesinclude government budget deficits anda loss of public confidence that the gov-ernment can meet its commitments.

A new paper by the Institute on Municipal Finance and Governance(IMFG)—Cost Overruns on Infrastruc-ture Projects: Patterns, Cause, andCures—shows that the causes of costoverruns are not merely technical.There are deep psychological and polit-ical economic factors that also con-tribute to the persistence of this phe-nomenon. Local governments need todevelop effective strategies to plan anddeliver major infrastructure projects.

How accurate are costestimates?Procurement problems on large infra-structure projects are a global epidemic.They affect projects conducted by na-tional, provincial, and local government,

Municipalities across Canada are in the midstof an infrastructure building boom. Afterdecades of underinvestment, billions of dol-lars are being promised and spent to rehabili-

tate existing assets and construct new transportation, water,waste, public housing, civic and recreation facilities.

A Roadmap to On Time, On Budget

for Mega-Project Planning

Editor’s note: Article written by Matti Siemiatycki. This article originally appeared in the May/June issue of ReNew Canada. For more information, visit www.renewcanada.net. Matti Siemiatycki is an associate professor in the Department of Geography andPlanning at the University of Toronto. The IMFG is an academic research hub and non-partisan think tank based in the Munk School of Global Affairs at the university.



journal, Energy Policy by Flyvbjerg andAtif Ansar found that of 245 large hydro dam projects in 65 countries, thecost escalated on average by 90 percentbetween the final approved budget andthe completed project. There was no improvement in accuracy over the 70years of data the study covered.Studies of smaller, more routine con-struction and maintenance projects inthe transportation sector show that costestimates for this type of work tend to

be more accurate. As three recent stud-ies in the transportation sector found,only about half of all small road projectsexperienced a cost overrun, and the av-erage escalation ranged from four to 9.5percent. A 2006 study of cost overrunson Canadian transportation projectsconducted by Joseph Berechman andQing Wu examined 163 routine high-way, bridge, and tunnel projects on Vancouver Island, and found that eightout of 10 had cost overruns.

and by private-sector organizations; theyare a feature of a wide diversity of infra-structure project types; and they havebeen stubbornly persistent throughouthistory. Cost escalations and scheduleslippage can occur during preliminaryproject planning as the initial concept ispriced and the design refined; from thetime that the project is approved until afinal contract is signed; during the actualconstruction period until substantialcompletion is reached; and after com-pletion if deficiencies must be fixed.International research shows most infra-structure mega-projects experience costescalations, but the overruns depend onproject type and size. In the transporta-tion sector, Bent Flyvbjerg, NilsBruzelius, and Werner Rothengatterconducted the largest study of cost over-runs (2003’s Megaprojects and Risk: AnAnatomy of Ambition) on a sample of258 major roads, tunnels, bridges, urbantransit, and interurban rail projects in 20countries on five continents. Eachmega-project cost $100 million or more,and most were the biggest, highest-pro-file, and most complex transportationprojects conducted in the jurisdiction atthe time. The study concluded that nineout of 10 mega-projects experienced acost overrun, and the average cost esca-lation was 28 percent. This pattern ofcost escalation was common across allcountries in the study and was un-changed over the 70 years for whichdata was available.Cost overruns are also a persistent prob-lem on mega-projects in other sectors.In the energy sector, a 2014 study in the

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ment employees were ever fired overprojects that experienced cost overruns.Politicians and project promoters havean incentive to underestimate the costsof their preferred infrastructure plans tomake them palatable to voters, and con-tractors competitively bidding for proj-ects may strategically underestimatecosts, knowing that once they win thejob, they can drive up the price throughchange orders.

Cures for overrunsCost overruns on large-scale projects area persistent problem with a diversity ofcomplex technical, psychological andpolitical economic causes. In response,measures are required that address thevaried causes of escalating project costs.

It appears that while overruns still occur,cost estimates tend to be more accuratefor smaller, simpler projects that can becompleted over a shorter period than formega-projects, and for projects that in-volve fewer sub-contractors. These rou-tine projects are also less likely to getcaught up in politicized decision-mak-ing processes that can surround a high-profile mega-project.

Why do overruns persist?Explanations for cost overruns can begrouped into three categories: technicalchallenges, over-optimism and strategicmisrepresentations:

Technical challengesTechnical challenges include scopechanges and change orders, problemscoordinating a large cast of contractorsand subcontractors, increased labour ormaterial costs, inaccurate forecasting,and poor monitoring of projects. Sincemost of these factors could be antici-pated and controlled, however, onemight expect that budgeting and sched-uling would improve over time as thosewho manage mega-projects gain moreexperience, but this is not the case.

Optimism biasesFor decades, researchers studying humanbehaviour have found that people areprone to “planning fallacies” or optimismbiases, whereby they underestimate thetime and cost to complete a task. Thetendency of individuals to accentuate thepositive is amplified by forces within

organization, and these tendencies arecompounded in situations in which theresults of a plan will not be known formany years, staff turnover is quick, andthere are few personal consequences forunderestimating project costs. Facedwith the prospect of making an opti-mistic forecast in the short-term to get a project started or an accurate long-term forecast, the favourable short-termforecast usually prevails.

Strategic misrepresentationWhen project construction is entirely financed by government, the costs ofoverruns and schedule delays deemedthe responsibility of government areborne by taxpayers rather than thosewho planned, approved and promotedthe project. Until recently, few govern-

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Enhance performance monitoring, reporting and information sharingThe world is in the midst of a big dataand analytics revolution, yet infrastruc-ture mega-project delivery remains asector that has been largely untouchedby this trend. Cities should require thatdata on procurement performance becollected for all infrastructure projectsover a minimum cost threshold. Datacollection should be coordinatedthrough a central department and con-ducted through a single software appli-cation. Inputting data as the project isongoing would reduce the costs associ-ated with retrieving this information after the fact, and make it possible to account for changes in budgets overtime that can make it difficult to accu-rately interpret a project’s success.Evaluation systems are by no means anovel concept in Ontario municipalities,especially as they pertain to measuringvendor performance. Many municipali-ties include formal contractor perform-ance evaluations as part of their tender-ing policies. In 2013, for instance, theCity of Toronto mandated that the gen-eral contractor on any city constructionjob be evaluated using a common Con-tractor Performance Evaluation Form.Over time, this performance trackingsystem would develop a very large

dataset that could be statistically ana-lyzed to show trends in the dynamics ofinfrastructure delivery costs, quality andcost overruns. In time, cities could develop predictive models that estimatethe likelihood of cost escalations undervarious conditions.

Reward good performanceLong-term, sustained improvements inperformance are greatest when incen-tives reward individuals or firms thatrank at the top of their league – whilepenalizing those that fail to meet per-formance expectations. One approachthat has gained international interest isthe implementation of formal prequali-fication systems, which give firms with a good track record an improved chanceof obtaining future contracts. Althoughsuch systems have been used to drive upthe quality of infrastructure procure-ment, in Canada, they are commonlydesigned so that as long as a firm meetsthe minimum standard required, it is eligible to bid for a government con-struction job. In Hong Kong and Singa-pore, by comparison, firms found to beconsistently high-performing in termsof quality construction and budget cer-tainty on previous jobs are assigned ex-tra points when their bids are evaluated.This means high-performing firms canbeat out low-performing firms even if

their bids are scored slightly worse orcost a little more.

Enhance the management capabilities of staffWeak project management by city staffhas been identified as a common sourceof cost overruns. There is a growingneed for city government staff withspecialized skills to manage the com-plex relationship between the publicand private sectors. Necessary skills include the ability to write effective requests for proposals that clearly articulate the client’s


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Long-term, sustainedimprovements inperformance aregreatest whenincentives rewardindividuals or f irms



demands; to manage competitive ten-der processes designed to select firmsbased on best value rather than lowestbid; to draft enforceable contracts thatclearly transfer the risk if budget expec-tations are not met or change orders arerequested by the contractor; to overseechange orders initiated by government;and to use conflict resolution approaches when tensions betweenpartners arise. In addition, sufficient resources must be available to supportthe function of contract drafting, management, and monitoring, such aseffective training programs.Apply state-of-the-art forecasting techniques

Numerous innovative techniques havebeen designed to deliver more accurateex-ante project cost estimates. Bench-marking a project under review against a representative reference class of re-cently completed projects has been pro-posed to assess probable project costsand overrun magnitude more realisti-cally than developing forecasts based oninternal agency predictions of costs.In line with such an approach, theBritish government has provided guid-ance on applying “optimism uplifts” totransportation project cost estimates,which are based on empirical measuresof cost overruns on past projects in the

sector. This method of reference classforecasting is enabled by data collectedthrough the implementation of a rigor-ous performance monitoring system.

Make selective use of public-privatepartnerships (P3s)Having a significant amount of privatecapital at stake during the constructionof a project provides an incentive for thecontractor to meet performance objec-tives and gives greater leverage to thegovernment client to enforce the termsof the contract. Recent provincial gov-ernment P3s in Ontario have delivered a high level of cost certainty. A studycommissioned by Infrastructure Ontariofound that of 30 projects delivered since2007 by the provincial governmentagency, 29 were completed below budgetand 22 were opened on time.Yet the value and suitability of P3s formunicipalities has limitations, and thismodel of procurement should be appliedwith care. Due to the high costs ofstructuring and executing a P3 deal, P3smake sense for projects with a capitalvalue of more than $50 million. This excludes many smaller municipal proj-ects. Many municipal infrastructureprojects are also closely integratedwithin an existing network of serviceand thus, there is no effective means ofintroducing private operations.

In practice, P3s are like purchasing aninsurance policy against the likelihoodof a cost overrun. The government paysa significant premium up front to ensurecost certainty and protect against a farlarger cost exposure if the budget in-creases as the project progresses. Pur-chasing this type of insurance through a P3 delivers value only for the largest,most complex, and riskiest municipal infrastructure projects, for which majorcost overruns are a likely occurrence.The implementation of performancemonitoring systems that systematicallytrack patterns of cost overruns across alarge number of municipal projectswould provide empirical evidence toidentify projects that are appropriatecandidates for P3s.The outstanding question arising fromthis analysis is whether any of the mainstakeholders involved in municipal in-frastructure delivery – politicians, citystaff and private firms – have an interestin moving beyond tough talk about costoverruns to implement strategies thatactually address this problem. Effectivestrategies do exist and are being imple-mented to measure and incentivize effective management of large public infrastructure projects elsewhere in theworld. Is there a will to implement these strategies at the municipal level in Canada?

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Effective strategies do exist and are beingimplemented to measure and incentivize effective

management of large public infrastructure projects



LINC LEADER PROFILE #1

Rod AitkenBall Construction

Journal: What was your first experi-ence with construction?Aitken: As a kid, I remember being inawe of buildings rising out of the groundand turning into a real, tangible endproduct. That was really cool. I had a lotof hands-on construction experience inmy family. I grew up on a farm, so every-one was handy. My first real big experi-ence was renovating our family home.

Journal: What did you study in school?Aitken: Construction engineering atConestoga College. I graduated in 1997.

Journal: How did you get your start inthe business?Aitken: I applied to an ad in the paper.Ball Construction was looking for an estimator. When I came on board, theygot me involved right away. They hadme doing take-offs, talking with sub-trades and owners, communicating proj-ects out for tender. I still do a lot of thatstuff today, even as a vice-president andsenior estimator, although there’s now asales role in there too.

Journal: Why did you get involved with LinC?Aitken: I knew it as a program of theGVCA, and I thought it would help meget more involved with the association. Iliked the idea of networking, of meetingpeers and learning from them. I alsoliked it as a platform for promoting ourindustry to young people and for doinggreat community work.

Journal: What’s the best reason forsomeone to get involved in LinC?Aitken: You’re part of a group of peoplewho have the same goals as you: gain-ing knowledge, building personal net-works. It’s also a personal developmentopportunity, especially if you join theLinC Committee.

Journal: Where do you take your career from here?Aitken: More of the same. I want continue to work with the owners andmake Ball Construction as successful as possible!

Rod Aitken is the former chairman of the GVCA’sLinC group. As Ball Construction’s vice-presi-dent and senior estimator, he’s applied his indus-try knowledge to work on such high-profile

projects as the Perimeter Institute and the University ofWaterloo School of Pharmacy. Although he’s now aged outof the LinC group – he turned 41 this year – Aitkenlearned a lot from his under-40 colleagues.

Perimeter Institute for Theoretical Physics, Waterloo, Ontario,

Editor’s note:

this article is the first in a

series of question and

answer sessions we held

with members of the GVCA’s

Leaders in Construction

Group. We’ll profile a new

LinC group member in each

subsequent issue as a way

of showing off not just these

people’s enthusiasm for our

industry, but also the true

benefits of being a LinC

group member. For more

information on LinC, visit

gvca.org.



Construction Technology was theoriginal name of the program. Itsfounder Arden Mertz initiated a syn-optic approach to the curriculum. Nosubject was to be taught in isolation;all must be interrelated and relevant.

Bernie Melloul, chairman and founderof Melloul-Blamey Construction Inc.,was an early graduate.

“In my opinion, the program has hadan influential and an important impact

in our community over the last 50years,” he says. Today, ACET graduates are workingat almost every level of construction—architectural technology, engineering,supervision, project management andsales. They have become leaders andbusiness owners.Mertz understood what was missing inthis community. At the time, the onlycollege that offered a similar educationwas Ryerson—and not everyone couldgo to Ryerson. Mertz was charismatic

At the time the program was formed, the construc-tion industry was basically composed of archi-tects, engineers and labourers. Although therewas no technologist education available, therewas a great need for such in the industry.

Conestoga’sACET ProgramCelebrates 50 Years

Professor Gord Lipke (retired) & a student team.



and attracted students to the program.He was all about quality and continuedto fine tune the program to meet theneeds of industry.“As an entrepreneur, it is very impor-tant to know that there will be a freshcrop of graduates who will be wellrounded and ready for industry,” saysMelloul. “We are very connected withthe college and work with the facultyto align with students who will fit withthe requirements of our company.”In 1968, the curriculum comprisedmath, physics, surveying, statistics, mechanics of materials, structural,electrical, project management, specifi-cations, free-hand drawing, architec-tural design, manual drafting, criticalpath, and technical writing.By the early 1980s, estimating and astrong HVAC component were added,and the program’s name was changedto Construction Engineering Technol-ogy. A building code component wasadded in the early 1990s. AutoCADfollowed in the late 1990s.In later years, facilities management,LEED, green and sustainable design,building science, energy resource con-servation, BIM and a stronger estimat-ing component were added.Over the years, the courses and pro-grams have all been adapted to meetindustry needs.Jim McCabe, a professor who teachesthe program’s building code courses,was the manager of the building department for the City of Cambridge

“Vintage” Student team project.ACET program’s 50th anniversary logo.



for 17 years before joining Conestoga.

“It is very rewarding to be a teacher inthis program,” he says. “All the stu-dents are passionate about building, architecture and construction.”

Lisa Miller-Way, a senior associate atLRI Engineering Inc., graduated fromConestoga’s ACET program in 2003.She recently received Ontario’s first li-censed engineering technologist desig-nation, a certification that celebrates acollaboration between ProfessionalEngineers Ontario and the OntarioAssociation of Certified Engineering

Technicians and Technologists.

Mike George of GA Masonry gradu-ated from the program in 1990 andhas been a member of its program ad-visory committee. He says the programhad a solid foundation and vision fromthe beginning and this has allowed itto evolve over the years.

“There is really a great group of facultymembers, most of whom are stillteaching in the program,” he says.“They began an annual networkingevent 16 years ago. This event has allowed young people to meet and talk

to industry representatives and com-pany owners to gain a better under-standing of what our industry is allabout. About 75 percent of the repspresent at this event are graduates ofthe program and so there is an auto-matic connection between the studentsand the industry members.”

Pam Tolton, vice-president of ABAArchitects Inc., says it all.

“The ACET program provided mewith the foundation I needed to startmy career. It provided me with theknowledge I needed and helped me to

ACET Founder Arden Mertz. Lisa Miller-Way the first women to receive LET licensing in Ontario.

Annual ACET BBQ – faculty vs students tug-of-war. On-campus field trip to the Rec Centre renovations.



build a strong work ethic, both factorsI attribute to my success in the workplace.”“I found the teachers to be extremelyknowledgeable. They are admired pro-fessionals that presented their studentswith content that’s current and rele-vant to the industry they work in,preparing us for real-world situations.They created an environment that al-lowed us to thrive, learn and succeed.The program also allowed for a hands-

on approach, providing the studentswith great field experience.”“In between the hard work and learn-ing, the program also allowed me tobuild some fantastic connections thatresulted in personal and professionalrelationships that still exist today. Ihold my colleagues in high regard. Wehave a mutual respect built from un-derstanding the hard work and dedication it took us to get to wherewe are today.”

the program had asolid foundation and

vision from thebeginning and this has

allowed it to evolveover the years.

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adopted by the LeanConstruction Instituteof Canada (LCI-C),the course standardizeseducation around leantools and techniques,and it equips partici-pants with the knowl-edge they need to chal-lenge the AGC examfor the forthcomingCertificate of Manage-ment – Lean Construc-tion designation.

Not all lean was created equalPart of Johnston’s work, in the earlyunits, at least, is to relieve participantsof their misconceptions about lean.The fact of the matter is, the process is still relatively new—more so inCanada—to the industry. A lot of people believe things about lean thatsimply are not true.“One of the big misconceptions peoplein construction hold about lean is thatit applies manufacturing principles to aproject-based environment,” he says.“That’s not true. Many of the ideas andconcepts adopted by the manufacturing

sector in the last fewdecades can’t be easilyapplied to the projectenvironment. The re-peatability factor that isso important in manu-facturing just isn’t therein construction.”Lean can only reallytake root on a construc-tion project site onceeveryone involved un-derstands that a con-

struction project is a series of commit-ments. When those commitmentsbreak down (if someone delivers thewrong material, or fails to meet a deliv-ery date for example), then a negativeimpact occurs, and creates knock-oneffects through the construction chain.“Once people make that realization,”says Johnston, “they can focus on waysto improve the reliability of commit-ments on the project. Work becomeseasier to plan because you conductwork the project is ready for, ratherthan pushing work forward accordingto a schedule.”In short, lean in construction is aboutpreparing the project for its next step.

Based in Winnipeg, Johnston is a con-struction operations and quality spe-cialist with more than 20 years in thebusiness focusing on business processand improvement. He’s also one of ahandful to hold lean accredited trainerstatus with the Associated GeneralContractors (AGC) of America. Thismeans he’s fully equipped to teachAGC of America’s Lean ConstructionEducation Program (LCEP) in theUnited States and now here in Canada.Johnston describes the seven-moduleeducation program as a “well balancedand holistic approach to learning aboutlean in construction”. It’s designed totake people from the basics of pull as aproduction system through to conceptssuch as the last planner system and leanin the supply chain and design process.Created by AGC of America and now

You may not haveheard James John-ston’s name, but iflean construction is

on your radar screen, you’ddo well to look him up.

Coming Soon: Lean Construction Education Program

James Johnston



It’s about looking at critically at everytask and assessing whether a conditionof satisfaction has been met that willallow the next task to begin.

Lean is a cultureJohnston says there is a significant opportunity for lean to change theway the industry works. Constructionhas normalized poor performance tothe point where overruns and delaysare hardly surprising, if not entirelyexpected. It’s also uncommonly adversarial – and becoming more so as time passes.“Lean endeavours to bring people together, to allow connected conversa-tions to take place and to break downthe barriers and mistrust that cause somuch negativity on a construction site,”says Johnston.He adds that the culture of the indus-try has to change for lean to really

work. People have to change theirmindset to think about processes andefficiencies at every point in a con-struction project, and not just at partic-ular points of time or on particular aspects of the work.The good news is that lean is startingto take root. More and more contrac-tors are warming up to the idea of using lean on their projects. (Make nomistake, Johnston says, lean principlescan be applied to any project, regardlessof size or delivery method. The LCEPteaches a series of practical tips andtools that contractors can apply to theirwork immediately.) Yet for lean to be-come much more deeply engrained inthe industry, it really needs more buy infrom owners and designers. “We’re seeing more enquiries for leantraining coming from designer andowner groups,” says Johnston. “Changeis happening – slowly.”

PUSH AND PULL IN PRODUCTION

Courtesy Christoph Roser, AllAboutLean.com

One of lean in construction’s

core concepts is the difference

between push and pull. When

a project is said to push work,

it follows a schedule blindly.

Work is produced without

much regard for those further

along the supply chain. That is,

a foundation is poured and sits

idle until the framing team can

come along and do its work.

Pull works differently. In a pull

system, the foundation is

poured and made ready on the

precise day that the framing

crew can start work. It’s almost

as though the framing crew

becomes the foundation

crew’s customer. The framing

crew tells the foundation crew

the date the foundation is

needed and that demand pulls

the foundation schedule along.

That’s a simplified definition,

but it shows how production

in the construction chain is

made more efficient. Work is

completed based on the de-

mands of others in the chain,

rather than on the demands of

a schedule on the wall.

The Lean Construction Institute -

Canada (LCI-Canada), of which

GVCA is a member, was founded

in 2015 as a special committee of

the Canadian Construction Asso-

ciation with the aim of promoting

the development and application

of lean tools and techniques

throughout the building industry

supply chain. This commitment

begins with conversations and

collaboration that includes all

members of the industry – own-

ers, designers, contractors,

trades and allied services within

the complete supply chain.

LCI-Canada believes the building

industry needs to improve value

delivered by capital projects

while reducing waste. Deep

application of lean principles

throughout the industry includ-

ing the definition of needs, de-

sign, construction and operation

of capital facilities will continu-

ously improve industry value.

For more information, see

lcicanada.ca.

LCEP: COMING SOON TO GVCAThe Lean Construction Education Program contains seven units:

1. Variation in Production Systems

2. Pull in Production

3. Lean Workstructuring

4. The Last Planner System

5. Lean Supply Chain and Assembly

6. Lean Design and Pre-construction

7. Problem-solving Principles and Tools

The GVCA plans to offer at least two and possibly four of the seven

units in the months ahead. For more information on the LCEP and

the GVCA’s planned schedule, see gvca.org.

GUIDING LEAN CONSTRUCTION IN CANADA



Ironically, promptness hasn’t exactlybeen the hallmark of this process todate. The government announced its in-tent to open up the CLA back in Marchof 2014, yet Reynolds and his colleagueSharon Vogel weren’t actually named tothe job until almost a year later – inFebruary 2015. By all accounts, the reviewers were thorough in their approach, but perhaps the size of thetask eluded them. They were due to deliver their report to government lastDecember, but extended their deadlineto early April, before finally submitting,after a second extension, on May 2.Now four months and counting past thedelivery of the report to government,Ian Cunningham, president of theCouncil of Ontario Construction Asso-ciations (COCA), isn’t mincing words.He says he’s exasperated, and he has no

clue why the release of the report hasbeen delayed for so long.

“There’s no doubt that reform of theConstruction Lien Act is complicated,”he says. “Between the June cabinet shuf-fle that brought a new attorney general,and perhaps a lack of really deep knowl-edge of the matter among staff at theAG’s office, anything could be causingthe delay.”

“I just hope that when the report is released, it’s accompanied by a clear andwell thought-out implementation plan,”he adds.

COCA has been tracking the report’sprogress (or lack thereof ) throughoutthe summer. In August, the council published an open letter to PremierKathleen Wynne calling for action.

“The construction industry has waitedlong enough,” it said. “Something mustbe done urgently! We implore you to introduce and pass legislation that willmodernize the Construction Lien Actto address the realities of the industry asit exists today and that compels the fairand timely payment for work that’s beencompleted without dispute. This mustbe a high priority of your governmentand passed into law before the legisla-ture rises for the next general election.”

Previous to that, the council speculatedon a number of reasons for the report’sdelay. For example, in its July newsletter,COCA wrote:

“Our sense is that the long delay in therelease of the report… is the result ofthe recent cabinet shuffle. Following theJune 13 reassignment of ministers, thereview falls under the aegis of the newAttorney General, Yasir Naqvi and thenew Minister of the new Ministry ofInfrastructure, Bob Chiarelli. Oftenwhen a cabinet minister is moved fromone portfolio to another, he or she willbring their own staff of loyal advisorswith them to the new position and thesepeople have to get "up-to-speed" on allthe files in their new ministries.”

If you’ve been wondering about the status of Ontario’sConstruction Lien Act reform, and any hoped-forprompt payment provisions, you’re not alone. Just abouteveryone in the industry is eagerly anticipating the release

of Bruce Reynolds’ report, and the government’s subsequentplan to enact his recommendations.

AN UPDATE ON PROMPT PAYMENT



In June, the council presented a host ofadditional reasons for the report’s delay.Some were pragmatic (for example, thetime needed to translate the documentinto French, and attention required tocomprehend the nuances of a 400-pagereport). Others were more cynical (a lowpriority placed on CLA reform in lightof the government’s poor showing in thepolls, deep-pocketed friends of govern-ment requesting delays, and overall indifference to any sort of resolution on the matter).Whatever the case, the fact remains thatthe report has not been released, and thegovernment has shown no clear signs ofdoing so any time soon. Meanwhile, andfor what it’s worth, Ontario’s delays havedropped the province out of poll posi-tion when it comes to being the first toadopt prompt payment legislation.In April, Quebec’s finance minister Car-los Leitao accounted that the provincewould adopt the Charbonneau Com-

mission’s recommendation #15, whichaddresses payment delays in construc-tion and recommends prompt paymentregulations. The announcement wasmusic to the province’s prompt paymentcoalition, the Coalition Contre les re-tards de paiement dans la construction."Another victory for the coalition andthe prompt payment file!", wrote KarineDevoyault, a representative of the Asso-ciation de la construction du Québec, ina July newsletter.Meanwhile, there’s not a lot of news toreport on the progress of Senate PublicBill S-224, either. The Canada PromptPayment Act that was introduced bySenator Donald Plett passed first read-

ing in April, but has stalled at secondreading since. It won’t progress at all further until the upper chamber resumessitting mid-September.Despite delays and continued silence,are there still positives to be taken fromthe various prompt payment initiativesfederally, here in Ontario and in Que-bec? Of course there are. Is it nonethe-less frustrating that governments can’twork faster to solve a problem that isplaguing so many in our industry? Absolutely.Once the report is released, GVCA will hold a special information session to discuss its recommendations.Stay tuned.

“I just hope that when the report is released, it’saccompanied by a clear and well thought-outimplementation plan”

TOGBUILDIN

GETHERNG A VISIONN

PreservRevitaliziRenewing

ving History.ng Spaces and

g Communities,

www.mellou @Mul.com elloul_Blamey Cambridge, OntarioJacob Hespeler Mill Site,

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Solutions to stretch limited public resources exist, but to achieve them, wemust embrace a new way of doing busi-ness. Harmonization and standardiza-tion of both specifications and contractslanguage is by far the most cost-effectivemeans of achieving this goal.

According to the 2016 Canadian Infra-structure Report Card, adequate invest-ment in repair and maintenance is es-sential to increasing the usable life ofinfrastructure assets. Despite continuedefforts by municipal governments, thereport card uncovered that re-invest-ment rates are well below the minimum

level required to achieve this goal.If this trend continues, the overall costof maintaining infrastructure will increase substantially.

Standardizedspecifications providecost savingsConstruction specifications describeboth the materials and workmanship required to complete a project. Stan-dardization of specifications means taking all of the great work being doneby various governments across Canadato create the best of the best set of stan-dardized specifications.Currently, different specifications arebeing maintained and utilized by eachlevel of government. Specifications fromdifferent documents are often pieced to-gether to create a new specification, butthey weren’t designed to work togetherand often produce conflicts within thespecifications. This often creates confu-sion, different expectations, and in-creased risk resulting in increased costs.The solution is to take all of the proven

specification work already in existenceand synthesize it into a master, collabo-rative, harmonized document coveringvarious conditions and projects. Each jurisdiction would then be able to usethe specification that best applies totheir specific conditions for climate, soil and usage.

With limited public resources availableto fund the modernization of govern-ment infrastructure, taxpayers can ill afford to have money wasted on rein-venting the wheel at each level of gov-ernment. This savings would benefit theactual construction of infrastructure!

Standard contractlanguage helps reduce costsThrough the use of standard contracts,all parties become familiar with themain framework that is used over andover again leaving the team time to focus on the unfamiliar supplementaryconditions, and ensure clarity of theagreed-upon terms. This reduces con-struction risk which reduces costs.

Standardization of Construction Specifications and Contract Language

Public resources tosupport infrastructuremodernization arelimited. Most govern-

ments are struggling to keeppace with the taxpayer de-mands for the modernizationand expansion of these assets.

Editor’s note: This material appears in the Canadian Construction Association’s guide Standardization of Construction Specif icationsand Contract Language. We reprint it here with permission. For more information, visit www.cca-acc.com.



The best examples of standard contractscome from the Canadian ConstructionDocuments Committee (CCDC).Through the committee of volunteersrepresenting public owners, private own-ers, architects, engineers, contractors, legal counsel and specification writers,the group reaches consensus on the bestlanguage to allocate the appropriaterisks to the appropriate parties. TheCCDC offers contracts for all projectdelivery methods, including unit price,civil works, stipulated sum, design-build,and construction management. Whenproject-specific modifications are required, they are done through supplemental instructions.

Familiarity breeds efficienciesWhen contractors understand the speci-fications and contract through repeatedand consistent usage, they are able toprice the project more accurately andcompetitively. Many private sector own-ers have adopted standard building design specifications and contracts to reduce cost and accelerate project construction. Lack of familiarity withspecifications increases risk and can leadcontractors to either increase their priceor ignore the tender altogether. If con-tractors choose not to bid, taxpayershave fewer competitive bids from which to choose.

Receive better pricingWhen estimators have standardizedspecifications they can build their bid-ding software to reflect these standardswhich reduces the risk factors and al-lows for better, more confident pricing.

Eliminate waste of timeTime is a rare commodity! The goal ofstandardization is to give more time inour schedules to focus on the nuances ofthe project; as opposed to trying to un-derstand the multitude of specificationsand contract clauses.Reduce training costsWith the retirement of so many profes-sionals in our industry, the experience ofour workforce is decreasing for all con-struction industry partners. Standard-ized specifications and contracts will al-low repeated, frequent and focusedtraining that will develop the requiredskills and expertise. Knowledgeable andexperienced employees will allow formore practical versus theoretical inspec-tion techniques, and the confidence toexplore innovative cost savings and envi-ronmentally friendly concepts.Minimize costly disputesThe construction world is complicatedand disputes are fostered from inconsis-tencies and modifications. Uncertaintyand lack of clarity equals opportunitiesfor disputes. Disputes have an impact ontotal project costs and schedules.

Improve qualityIn many cases specifications and con-tracts are 20 years old and have beenpieced together from many differentsources. When specified products don’tmatch the execution specifications, it iswasteful and costly to make corrections.Standardization will put trust back intoknowing what is needed to complete theproject to the highest standards and improve overall quality control.

Improve purchasing powerStandardized specifications allow con-tractors to bulk purchase materials andavoid the expensive one-off purchaseswhether for new construction or main-tenance. This equates to better purchas-ing power for taxpayer dollars.Enhance trustUtilizing standardized specifications andcontracts means that all parties can trustknowing what is stated and what itmeans. Trust is an important componentfor the success of any project.Reduce injuriesSafety is everyone’s responsibility. Famil-iarity of products and execution allowscontractors to spend more time on honingand fostering safer work practices in theperformance of their work. Safety starts atthe top and is everyone’s responsibility.

Maintenance ofstandardsThrough collaborative efforts of organi-zations like the CCDC, input is gath-ered from users, and discussions are heldto modify contract clauses as necessaryreflecting the goal of efficiency and in-novation. It is far more effective to sharethe job collaboratively among many fora united purpose, rather than independ-ently across the country. Today, there isno group assembling construction speci-fication best practices. The status quo is simply not goodenough. With finite government resources under increasing pressure, thetime has never been better to abandonexisting practices in favour of a new approach.



Lassel acquired Baywood in 2007 andembarked on a new diversification plan.Originally a 7,000-square foot plantwith seven employees, Baywood hasgrown steadily over the years. With plans to streamlinemanufacturing, gain efficiencies andacquire in-house finishing capabilities,Baywood has now amalgamated thecompany’s existing plants at its 20,000-square foot facility in the BridgeportBusiness Park.“We have invested heavily onequipment and training,” says Lassel.“The most important thing today is tostay on top of technology to becompetitive. It makes us more efficientand it makes our working environmentmore exciting. We are now becoming

high tech in some of the trades and weneed smart people to operate thisequipment.”Lassel, a double grad from ConestogaCollege’s Industrial WoodworkingProgram and Architecture/Construction Engineering Program isvery proud that 65 percent of hiscurrent staff of 40 are Conestogagraduates.“We have Conestoga co-op studentsworking for us now that we hope tobring back for second and third terms.That way we know we will have a goodemployee to hire after they graduate.That’s the goal,” he says.Lassel is very pleased that the industryis now tackling some of its majorchallenges, such as poor documents,prompt payment, technologyadvancement and the serious lack ofskilled workers.Baywood has certainly felt the pinchwhen it comes to skilled workers.“We hire good workers and we losegood workers, because of the skilledtrade workers shortage,” Lassel says.“Recruiters have no problem callingemployees at our office and offeringthem an outrageous amount of moneyto leave, because their client isdesperate, and it is only going to get

worse for the whole industry.”Like all companies in the industry,Baywood is facing tighter tenderperiods and having to deal with poordocuments coming out of architecturaloffices. Lassel commented thatdrawings and specs are often cut andpaste from generic documents that arenot tender specific and contain old,missing and inaccurate information.“We find that if a job has more thantwo or three addenda, the architect isessentially getting the trades to designthe building. Add this to tight tenderperiods, and it creates a lot ofunnecessary stress for the trades, and in many cases poor value for the endclient,” he says.As it has grown, Baywood has gonefrom being an entirely manualoperation to one that is now nearly halfautomated. Lassel expects to add moreequipment and technology as thecompany grows. Lassel attributes Baywood’s successmostly to really great clients with lots ofrepeat business, some awesomesuppliers, and most of all its employees,especially long-term employees JoelRorke (operations manager), MatthewMcLean (production manager) and RayShaban (finishing room supervisor).

John Lassel, president andowner of Baywood Interi-ors Ltd, is a true entre-preneur with a great

respect for the efficienciesgained from advancing tech-nologies. He also has a longhistory in the woodworkingindustry.

Steady Growth with an Eye for

Automation: Baywood Interiors

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AUTOMOBILE DEALERSHIPS

BFD RONA BUILDING CENTREBFD is a locally-owned Rona Building Centre offering a completeline of lumber and building supplies, hardware, paint, plumbing,electrical, windows, doors and trim. We cater to contractors and offer delivery throughout K-W, Cambridge and surrounding areas.BFD specializes in Fencing of all types including professional installation by qualified tradespeople.

Tim Hergott | (519)745-3250 | [email protected]

BUILDING SUPPLIES

National Concrete AccessoriesWith over 45 years of experience, National Concrete Accessories is Canada’s leading manufacturer and distributor of concrete acces-sories. NCA Cambridge is proud to service the tri-city region. Specializing in product variety, quality and service, we distributeconstruction and restoration products, tools & equipment, decorative concrete and building envelope products.

Murray Wiegand | (519) 622-3422 | [email protected]

BUILDING SUPPLIES

Victoria Star Motors Victoria Star Motors is committed to providing exceptional valuethrough our customer service. We sell Mercedes-Benz passengervehicles, Sprinter vans and smart cars in Waterloo Region includingKitchener, Waterloo, Guelph and Cambridge. Our Service andParts departments will preserve the performance, safety, reliabilityand long-term value of your Mercedes-Benz.

Justin Nesbitt | 519-579-4460 | [email protected]

AUTOMOBILE DEALERSHIPS

2016 GVCABUYER’SGUIDEIn our first Buyer's Guide companies are given the unique opportunity to profile their company's products/services in our annual Procurement issue of The Journal which is distributed to 3,200 members in the Central Ontario construction industry including our 700 member firms.

Adex SystemsAdex is an exterior insulation finish system (EIFS) that promotessuperior energy-efficiency. Continuous exterior insulation and theliquid applied resistive barrier (LA-WRB) protect the building’sstructure from inclement weather without thermal bridges. Of-fered in a wide variety of colours and multiple textures, the manysystems multiply the possibilities for architectural originality.

Kaylen Bao | 866-900-ADEX | [email protected]

BUILDING SUPPLIES



2016 GVCA BUYER’S GUIDE

CJs Express Plumbing and Electrical LtdCJs Express Plumbing and Electrical Ltd. has had great successover the last 3 years in being able to reach the next level that theywere aiming for. With leading construction estimating and job cost-ing software and modern onsite technology we are able to keep ourteam strong and reach our goals and dead lines.

Nelson Oliveira | 519-621-3111 | [email protected]

ELECTRICAL

Bill Snyder Electric Inc.Providing Electrical Contracting Services Since 1991. We specialize inthe industrial, commercial and institutional sectors, taking on assign-ments ranging from minor service calls to multi-phased design buildprojects. Services Include: Automation & Integration; Panel Builds;Controls; Energy Conservation; Industrial Installations; Programming;Design-Build; Electrical Contracting; and VFD & Motor Controls.

Nat Snyder | 519-747-7213 | [email protected]

ELECTRICAL

Chris Henderson | [email protected] | 888-738-6606

844-822-1111 | [email protected]

Joe Gibson | 519-743-2210 | [email protected]

Form & Build Supply Inc.Supplying quality concrete related and masonry specialty products to the Ontario construction industry for over 40 years!

CONCRETE

CRS Contractors Rental SupplyWith 28 locations across Ontario, we are in the business of providing building contractors and related trades with qualityequipment, merchandise, and service.

CONSTRUCTION EQUIPMENT RENTAL

BNEBNE Contractors is an industry leader in providing high per-formance floor solutions for concrete floors in commercial, retail,industrial, institutional and food production facilities.

CONCRETE

National Concrete AccessoriesWith over 45 years of experience, National Concrete Accessories isCanada’s leading manufacturer and distributor of concrete acces-sories. NCA Cambridge is proud to service the tri-city region. Specializing in product variety, quality and service, we distributeconstruction and restoration products, tools & equipment, decorative concrete and building envelope products.

Murray Wiegand | (519) 622-3422 | [email protected]

CONCRETE

Ontario PilingOntario Piling Ltd. works throughout southern Ontario, special-izing in the installation of drilled footings, caissons, driven anddrilled piles and shoring systems. Our workforce has many yearsof experience in the foundation industry and we employ certifiedFoundation Drill Rig Operators.


CONSTRUCTION FOUNDATIONS

JDI Cleaning SystemsSince 1992, we have prided ourselves in providing top-notchcleaning services. We are very particular about who enters yourworking environment. So we recruit our professional cleaners fortheir trustworthiness, reliability, dedication and attention to detail.After all, our reputation is always on the line.

Dan Radulovic | 519-884-9600 | [email protected]

CLEANING




L.J. Barton Mechanical Inc.A multi-trade contractor offering plumbing, HVAC and electricaldesign and service to the ICI construction industry. With over 25years experience we aim to exceed industry standards and customerexpectations. Whether it be design build or spec, we are the part-ner who will be an intricate part of your successful projects.


ELECTRICAL

YOU NEED WORK-READY EMPLOYEES. WE’RE HERE TO TRAIN THEM.Highly trained, safety-conscious and skilled, LIUNA Local 1059 members are the right people for the job. Our 3,000 members work across Southwestern Ontario in construction, maintenance, light manufacturing and security positions. LIUNA members are also employed in janitorial, hospital housekeeping, precast manufacturing and parking. These are important jobs that we are proud and honoured to do, and we know that the best workers are often those who receive the best training.

www.liunalocal1059.com

Tacoma EngineersTacoma Engineers is a structural engineering and building consult-ing firm with offices in Guelph and Barrie. We provide consultingengineering services for a wide variety of building projects, includ-ing commercial, industrial, residential, institutional and agricultural.Our 30 years of experience includes structural assessments, buildingrestoration and heritage projects.

Mike Gilles | 519-763-2000 x213 | [email protected]

ENGINEERING

H&V Carpeting Serving Cambridge for over 30 years, H&V Carpeting has theflooring you need to add comfort and style to your home, office orworkplace. In addition, professional flooring installation, we also offer carpeting, laminate, hardwood, ceramic, and commercial Resilient flooring.

Vrej Kassamanian | 519 740 3993 | [email protected]

FLOORING

Knapp Fasteners Inc.Holding the World together since 1987! Knapp stocks over60,0000 varieties of Fasteners in Cambridge! Specializing inKnowledge based solutions and services to the Aerospace, Manu-facturing & Commercial Marketplace World Wide. ISO9001:2008certified, Controlled Goods and decades of fastener expertise! Connect with us today!

Jennifer Knapp | 518-653-4558 | [email protected]

FASTENERS




L.J. Barton Mechanical Inc.A multi-trade contractor offering plumbing, HVAC and electricalto the ICI construction industry. With over 25 years experiencewe aim to exceed industry standards and customer expectations.Whether it be design build or spec, we are the partner who will be an intricate part of your successful projects.


HEATING & COOLING

The Guarantee Company of North AmericaThe Guarantee works closely with construction associations, industry associations, government bodies, and insurance brokers todevelop surety products responsive to new and emerging businessneeds. Issuing surety bonds for over 140 years, The Guarantee has the capital, expertise and resources to underwrite large complex obligations.

Toll free: 1(800) 268-6617 | www.theguarantee.com

INSURANCE AND BONDING

Giffen LLPGiffen LLP has a long history of serving the construction industry.Simon (called 1978) and Sahil (2014) represent owners, contractorsand trades in both court and non-court matters. We are very wellaware of the industry’s need for efficient, effective and economicalrepresentation and this governs our acting for you.

Simon Adler | 519-578-4150 | [email protected]

LEGAL SERVICES

Cowan InsuranceCowan Insurance Group’s Construction segment has built a solidreputation as a knowledgeable, capable and experienced leader inthe construction industry. Cowan’s Construction team will ensureyour insurance, surety and risk management needs are met with theideal solution. Our experts understand the uniqueness of the indus-try and can tailor solutions to your business needs.Kevan Thompson | 519-650-6363 | [email protected]

INSURANCE AND BONDING

Duncan, Linton LLPA full service law firm providing Legal and Business solutions forover 150 years in the Waterloo Region, Wellington County and beyond. We have extensive experience in construction law, includ-ing: contract review; procurement/tender disputes; constructionliens and construction litigation.

519-886-3340 | www.kwlaw.net

LEGAL SERVICES

Miller Thomson LLP Miller Thomson LLP is a full service business and litigation lawfirm offering a complete range of legal services. With 11 officesacross Canada, including 3 in south western Ontario, Miller Thomson offers local expertise, with national resources.

Tim McGurrin | 519.593.3221 | [email protected]

LEGAL SERVICES

Geosolv Design/Build Inc.GeoSolv is a design-build geotechnical contractor with 10+ years ofproven experience delivering Innovative Foundation Solutions™which manage risk and reinforce fill and structurally poor soils. Thesesolutions are installed year-round, limit excavation and disposal vol-umes, reduce/eliminate shoring and dewatering requirements, andprovide robust support for foundation and slab-on-grade elements.

Neil Isenegger | 905-266-2599 | [email protected]

FOUNDATION SUPPORT SPECIALISTS

Adex SystemsAdex is an exterior insulation finish system (EIFS) that promotessuperior energy-efficiency. Continuous exterior insulation and theliquid applied resistive barrier (LA-WRB) protect the building’sstructure from inclement weather without thermal bridges. Of-fered in a wide variety of colours and multiple textures, the manysystems multiply the possibilities for architectural originality.

Kaylen Bao | 866-900-ADEX | [email protected]

INSULATION



L.J. Barton Mechanical Inc.A multi-trade contractor offering plumbing, HVAC and electricalto the ICI construction industry. With over 25 years experiencewe aim to exceed industry standards and customer expectations.Whether it be design build or spec, we are the partner who will be an intricate part of your successful projects.


MECHANICAL

O’DellSince 1987, O’Dell Associates has been representing leading manufacturers in HVAC equipment throughout S-W Ontario. We are EXPERTS in: Air-to-air heat & energy recovery, humidifi-cation, commercial & industrial ventilation, energy efficientkitchens, custom air handling & air distribution. Our knowledge-able sales team delivers value on every project.

Nathan Martin | 519-772-0386 | [email protected]

MECHANICAL


Sherrard Kuzz LLPSherrard Kuzz LLP is one of Canada’s leading employment andlabour law firms representing construction industry employers. Recognized nationally and internationally, our team is amongCanada’s Top 10 Employment and Labour Boutiques (CanadianLawyer®), Canada’s Leading Employment & Labour Law Firms(Chambers Global®) and Repeatedly Recommended (Lexpert®).

Erin Kuzz | 416-603-0700 x6242 | [email protected]

LEGAL SERVICES

ArriscraftArriscraft manufactures a vast range of premium stone for commer-cial and residential projects, including full-bed Renaissance® Masonry Units and Building Stone, Thin-Clad adhered andclipped veneers, Adair® Limestone, and cast accessories. Designerscan select from a truly comprehensive line of styles in natural colors,with custom applications available.

Linus Laugalys | 800-265-8123 | [email protected]

MASONRY




Conestoga RoofingFounded in 1982, Conestoga Roofing & Sheet Metal Ltd. has honed aformula for success in the commercial and industrial roofing markets andis a preferred supplier of flat roofing systems across Southern Ontario.Based out of Cambridge, the company focuses on built-up roofing sys-tems, single-ply membranes, modified bitumen, thermoplastics, metal-sloped roofing, maintenance, repairs and emergency roofing services.

519-623-7411 | 888-518-7663 | www.conestogaroofing.com

ROOFING

K-W Door Installations Inc.KW Door offers Residential and Commercial Door Installations.We are capable of taking on Residential and Commercial Door Installations contracts in Southwestern and Northern Ontario. We have been in business for nearly 30 years and have servicedhundreds of clients. Our goal is to provide our customers with impeccable service at competitive rates.

Chris Carson | 800-330-1903 | [email protected]

OVERHEAD DOORS

Only our Natural Process technology creates stone with aesthetics and durability of quarried stone, plus the design flexibility and installation benefits of a manufactured product. Discover our comprehensive selection of full-bed, brick and thin-clad solutions, in several natural colors and finishes.

Naturally-made, premium thin and full-bed stone products.

Green/LEEDTM

Selection

Solutions

Education

Innovation

Build to impress.

arriscraft.com

Baywood Interiors Ltd.Proudly Canadian, serving the industrial, commercial and industrial construction industry since 1994.

John Lassel | 519-748-9577 | [email protected]

MILLWORK

5 Star Paving (Cambridge) Inc.5 Star Paving is a family owned and operated organization where all of your paving and construction needs can be met. Whether youare in the Commercial, Industrial, Municipal or Residential sectors.5 Star Paving can provide the perfect solution for your asphalt parking lots, pathways, excavating & grading, concrete sidewalks & curbs.

(519) 624-1712 | [email protected] | www.5starpaving.com

PAVING




LIUNA Local 1059 LIUNA Local 1059 represents over 3,000 members working formore than 240 different employers in London, Middlesex, Elgin,Oxford, Huron, Perth, Bruce and Grey counties in SouthwesternOntario. Local 1059 is committed to innovation, and is alwayslooking for new opportunities to build partnerships and furtherrepresent its members.

LIUNA Local 1059 | 519-455-8083 | www.liunalocal1059.com

TRAINING & EDUCATION

William Knell & Company LimitedOur divisional teams work closely with customers to understandtheir needs. Whether you come for the total opening, or tools andsupplies to get the job done right, Knells will guide you, and help to find the right mix of products and services, on time, and within budget.

Rob Tomchick | 519-743-4344 | [email protected]

WINDOWS, DOORS & HARDEWARE

Strassburger Windows and Doors For over 65 years Strassburger Windows and Doors has been givingour customers what they expect… quality workmanship and in-tegrity at a fair price. We are manufacturers of vinyl windows, patioand entry door systems for the replacement, renovation and new-construction markets and the only manufacturer to offer a complete- engineered designed - window and door serieswww.strassburger.net | 519-885-6380 | [email protected]

WINDOWS, DOORS & HARDEWARE

Sign Language Inc.Design, manufacture and installation of all types of signs, including…Traffic and parking signage.Braille and tactile OBC signage.Interior and exterior corporate identification.From donor recognition to full cover murals.…everything in signs!

Graham Brown | 519-743-8293 | [email protected]

SIGNAGE

RCT BinsRCT Bins has roll-off bins for all your construction & demolitionwaste (C&D waste). We have an extensive network of disposal facilities, including WasteAway Recycling & Environmental Waterloo Regions only C&D material recovery facility. We can offer you the best disposal rates.

Jennifer Culver | 519-741-6463 |[email protected]

WASTE SERVICES

Sign Language Inc.Design, supply and installation of all types of vinyl film.OBC vision banding.Full cover wall murals.Privacy film – from full cover to decorative designs.Frosted etch film, digital prints and vinyl graphics.…everything in vinyl film.

Graham Brown | 519-743-8293 | [email protected]

WINDOW FILM

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Ball Construction Ltd. . . . . . . . . 23Battlefield Rental . . . . . . . . . . . 29Baywood Interiors Ltd. . . . . . . . 15BNE Contractors Inc. . . . . . . . . . 16Conestoga Roofing . . . . . . . . . . 17Cowan Insurance Group Ltd. . . 13Delta Elevator . . . . . . . . . . . . . . . 9Duncan, Linton LLP . . . . . . . . . . 15JDI Cleaning Systems . . . . . . . . 18K-W Door Installations Inc. . . . . 9Knell's Door & Hardware . . . . . 17

Melloul Blamey . . . . . . . . . . . . . 27Miller Thomson LLP . . . . . . . . . 23Therm-All . . . . . . . . . . . . . . . . . . 21Victoria Star Motors . . . . . . . . . 40

BUYER’S GUIDEACL Steel Ltd. . . . . . . . . . . . . . . 37Arriscraft . . . . . . . . . . . . . . . . . . 36Contractors Rental Supply . . . . 31Liuna 1059 . . . . . . . . . . . . . . . . . 33Strassburger . . . . . . . . . . . . . . . 35

ADVERTISERS’ INDEX

EVENTS CALENDAR

September 30 and October 1GVCA Hockey Tournament – Registration Required

October 13GVCA Oktoberfest Night – Tickets Required

EDUCATION CALENDAR

September 19Breakfast Seminar – Fire & Life Safety – Registration Required

September 27Working at Heights Training – Registration Required

October 13 and October 14 Microsoft Project for Construction – Registration Required

October 26 and October 27 In From the Site: Office Computer Programs Simplified

October 18 Working At Heights – Registration Required

October 11COR Essentials – Registration Required

October 12Basic Auditing Principals – Registration Required

October 17COR Internal Auditor – Registration Required

October 24Introduction to Hazard and Risk Management – New Requirement in 2016 – Registration Required

November 22 Working At Heights – Registration Required

TO REGISTERTo register, or request additional information please contact [email protected] or call 519-622-4822 X120

Every 6 months GVCA will draw from names entered intothe Member Company Profile Lottery giving each entrant

3 draw chances to be profiled in one of the upcoming issues of the GVCA Journal.

Cost to enter $50.00

To purchase a ticket please email:[email protected]

GVCA MemberCompany Profile

Lottery




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PROMOTE EXCELLENCE in the management

of construction Registeryour next projectas a Gold Seal

Managed ProjectContact Martha George

519 [email protected]


Responding to water and fire emergencies across the Greater Toronto Area, Aldi Cibuku and his Absolute Interior team cover a lot of ground. When the call comes in, they need vehicles they can depend on. Hear why they’ve turned to Mercedes-Benz Sprinters and the mid-size Metris to help them go further than ever before at FuellingBusiness.ca.

“Switching from domestics, our fuel costs have been cut in half.”

Victoria Star Motors, Mercedes-Benz Kitchener, 125 Centennial Road, Kitchener, ON N2B 3E9 Tel: (519) 579-4460 victoriastarvans.com
