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PM 40065075 ciqs.org CONSTRUCTION ECONOMIST The Journal of the Canadian Institute of Quantity Surveyors Le Journal de l’Institut canadien des économistes en construction SPRING 2017 BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES • ONTARIO • QUÉBEC • MARITIMES • NEWFOUNDLAND AND LABRADOR • Construction economy in NL • PAQS 2017 • Project monitoring Integrated Project Delivery

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Page 1: BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES ...€¦ · Electrical Estimating Certificate Mechanical Estimating Certificate Residential Construction and Home Inspection

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CONSTRUCTION ECONOMIST

The Journal of the Canadian Institute of

Quantity Surveyors

Le Journal de l’Institut canadien des économistes

en construction

SPRING 2017

BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES • ONTARIO • QUÉBEC • MARITIMES • NEWFOUNDLAND AND LABRADOR

• Construction economy in NL• PAQS 2017

• Project monitoring

Integrated Project Delivery

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Construction and Estimating Certificates/Designations

Canadian Construction Association (CCA) Gold Seal Credit Courses

Construction Estimating CertificateConstruction Project Management CertificateConstruction Superintendent (ICI) CertificateElectrical Estimating CertificateMechanical Estimating CertificateResidential Construction and Home Inspection

Certificate

Discover our courses and certificates in construction and estimating. Taught by industry professionals using the latest tools and standards, these courses provide you with the skills to succeed. Our series of Canadian Institute of Quantity Surveyors (CIQS) accredited courses provide opportunities to develop your skills and expand your career potential. Classes are held at our Casa Loma Campus (160 Kendal Avenue) in downtown Toronto or online.

Training that delivers concrete results

coned.georgebrown.ca/technologyRegister now!For more information, contact us at 416-415-5000, ext. 4861, 1-800-265-2002, ext. 4861 (toll-free), or [email protected].

Education That Fits YouWith evening, weekend and online classes starting throughout the year, we make it simple to fit learning into your schedule. Select individual courses best suited to your interests, or register for those courses that make up certificate requirements. You can work toward a certificate at your own pace – you register (and pay) on a course-by-course basis.

Continuing Education at George Brown College

Page 4: BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES ...€¦ · Electrical Estimating Certificate Mechanical Estimating Certificate Residential Construction and Home Inspection

A leading Cost Consulting and Project Management firm requires the following candidates for its Montreal and Ottawa offices:

Junior, intermediate and senior level Q.S.’s, Estimators and Planners with experience on:

• Commercial and institutional projects• Industrial projects (oil/gas, refineries, mining, metallurgical).

We offer competitive salaries, benefits, training and potential for growth. Relocation assistance will be provided.We sincerely thank all applicants, but only those candidates which meet our requirements will be contacted.

Fax: 514-846-8913 | Phone: 514-846-8914 | E-Mail: [email protected]

Please send resume in strictest confidence to: LCO - Construction and Management Consultants Inc.

QUANTITY SURVEYORS, ESTIMATORS, PLANNERS

The TD Insurance Meloche Monnex program is underwritten by PRIMMUM INSURANCE COMPANY. It is distributed by Meloche Monnex Insurance and Financial Services Inc. in Quebec and by TD Insurance Direct Agency Inc. in the rest of Canada. Our address: 50 Place Cremazie, Montreal (Quebec) H2P 1B6.Due to provincial legislation, our car and recreational insurance program is not offered in British Columbia, Manitoba or Saskatchewan. *Nationally, 90% of all of our clients who belong to an employer group that has an agreement with us and who insure a home (excluding rentals and condos) and a car on October 31, 2016, saved $469 when compared to the premiums they would have paid without the preferred insurance rate for groups and the multi-product discount. Savings are not guaranteed and may vary based on the client’s profile. Savings vary in each province and may be higher or lower than $469. All trade marks are the property of their respective owners.® The TD logo and other TD trade-marks are the property of The Toronto-Dominion Bank.

Get more out of your benefits.

As a Canadian Institute of Quantity Surveyors Designation Holder, you have access to the TD Insurance Meloche Monnex program. This means you can get preferred insurance rates on a wide range of home and car coverage that can be customized for your needs.

For over 65 years, TD Insurance has been helping Canadians find quality home and car insurance solutions.

Feel confident your home and car coverage fits your needs. Get a quote now.

HOME | CAR

You could save big* when you combine your designation holder preferred rates and bundle your home and car insurance.

Recommended by

Get preferred rates and coverage that fits your needs.

Take advantage of your designation holder benefits.

Get a quote and see how much you could save!Call 1-866-296-0888Or, go to tdinsurance.com/ciqs

4 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2017 To return to Table of Contents CLICK HERE

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Project monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . 14PAQS 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Integrated Project Delivery – an overview of its purpose and promises . . . . . . . . . . 19Practice leaders on the top three challenges for Canadian industry . . . . . . . . . . . . . . . 23Amanda Clack interview . . . . . . . . . . . . . . . . . . . . 26Ontario’s Quantity Surveyors converge for another sold-out Construction and Project Management Seminar . . . . . . . . . . . . . 28Construction economy update from NL . . . . . . . . . 30Arif Ghaffur presents at Construction Specifications Canada . . . . . . . . . . 32

Published four times a year on behalf of the Canadian Institute of Quantity Surveyors by

Third Floor - 2020 Portage AvenueWinnipeg, Manitoba R3J 0K4Tel: 866-985-9780 Fax: [email protected] www.kelman.ca

Managing Editor . . . . . . . . . . . . . . . . . . . . . . . . . . . Chris KelmanArt Design/Production . . . . . . . . . . . . . . . . Tabitha RobinAdvertising Coordinator . . . . . Stefanie HagidiakowMarketing Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . Jeff Kutny [email protected] 866-985-9789

Publication Mails Agreement #40065075Send undeliverable addresses to: [email protected]

Canadian Institute of Quantity Surveyors90 Nolan Court, Unit 19, Markham, ON L3R 4L9 t. 905/477.0008 f. 905/477.6774 toll free. +1 866/345.1168 e. [email protected] www.ciqs.org

Executive DirectorSheila Lennon, CAE . . . . . . . . . . . . . . . . . . . . . . . . . [email protected]

Editor Arif Ghaffur, PQS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [email protected]

Send Change of Address to:Canadian Institute of Quantity Surveyors90 Nolan Court, Unit 19, Markham, Ontario L3R 4L9

CIQS BoardChair:Matthew K. Weber, PQS(F)

Vice Chair and Secretary/Treasurer:David Dooks, PQS

Past Chair:Craig Bye, PQS(F)

Registrar and CIQS – Prairies and NWT Rep:Wendy Hobbs, PQS

CIQS – British Columbia Rep:Angela Lai, PQS

CIQS – Maritimes Rep:Erin Brownlow, PQS

CIQS – Newfoundland and Labrador Rep:Royston Lewis, PQS(F)

CIQS – Ontario Rep:Sheri Thompson, PQS

CIQS – Quebec Rep:Guillaume Robitaille, PQS

Education Administrator:David Lai, PQS(F)

Statements of fact and opinion contained within this journal are those of the authors, including subject matter experts. CIQS assumes no responsibility or liability for the content of such fact and opinion, nor do they represent the official policy of CIQS.

Features

Corners MessagesChair’s Message . . . . . . . . . . . . . . . . 6 Executive Director’s Message . . . . . . 8Editor’s Message . . . . . . . . . . . . . . . 9

CPD Corner . . . . . . . . . . . . . . . . . . . 11Professional Sustainability Corner . . . . 12

OUR CONCERN FOR THE ENVIRONMENT IS MORE THAN JUST TALKThis document is printed on paper certified to the standards of the Forest Stewardship Council® (FSC®).

The Journal of the Canadian Institute of Quantity SurveyorsLe Journal de l’Institut canadien des économistes en construction

The mission of CIQS is to promote and advance professional quantity surveying and construction estimating; to establish and maintain national standards; to recruit, educate and support our members .

PAQS2017.COMINFO@PAQS2017 .COM

1-866-345-1168

P L E A S E C O N TA C T U S F O R M O R E I N F O R M AT I O N O N H O W Y O U C A N PA R T I C I PAT EFEATURED SPEAKERS INCLUDE DAVID SUZUKI, SARIKA

CULLIS-SUZUKI, JON MONTGOMERY, THE FOLLOWING,

PLUS MANY MORE!

JULY 24–26, 2017 | WESTIN BAYSHORE

B E A PA RT O F N O RT H A M E R I C A’ S P R E M I E RSUSTAINABLE DEVELOPMENT CONFERENCE

REGISTRATION

IS NOW

OPEN

P R O G R A M AT A G L A N C EMONDAY, JULY 24TH – Green Developments: The New Era

SUB THEME: DELIVERING HIGH-PERFORMANCE BUILDINGS COST EFFECTIVELY

AFTERNOON EVENT SPEAKER LOCATION

1:00PM MOTIVATIONAL SPEAKER TERRY SMALL (BRAIN GUY) SALON DEF

2:00PM SPEAKER PANEL 2: CLIMATE CHANGE RISKS AND OPPORTUNITIES

RALF NIELSEN, CARLA GUERRERA & MORE

SALON DEF

3:00PM AFTERNOON BREAK AND NETWORKING SESSIONS

3:30PM - 5:30PM BUILDING INNOVATION - BEAR CAVEBEAR CAVE PANELISTS

SALON DEF

TECHNICAL AND ACADEMIC SESSIONS VARIOUS TBD SALON 1, 2 & 3

5:30PM CLOSE OF DAY; COCKTAIL RECEPTION

7:00 PM EVENING SOCIAL OUTING THE BLARNEY STONE, VANCOUVER

SUB THEME: LIVING WITHIN PLANETARY BOUNDARIES

MORNING EVENT SPEAKER LOCATION

7:00AM REGISTRATION OPENS WESTIN BAYSHORE VANCOUVER

8:00AM OPENING CEREMONYFIRST NATIONS PRESENTATION

TEWANEE JOSEPH MATT WEBER

SALON DEF

8:30AM FEATURED SPEAKER PANEL 1 THE ROAD TO VANCOUVER 2020

SEAN PANDER, MARY POLAK, THOMAS MUELLER, SHAYNE RAMSEY, & MORE

SALON DEF

9:30AM BREAK: MORNING TEA & POSTER SESSIONS FOYER

10:15 AM KEYNOTE ONEDAVID SUZUKISARIKA CULLIS SUZUKI

SALON DEF

11:30 AM LUNCH FOYER

SUB THEME: WORKING SMARTER WITH NATURE AND GREEN INFRASTRUCTURE

MORNING EVENT SPEAKER LOCATION

7:00AM REGISTRATION OPENS N/A WESTIN BAYSHORE VANCOUVER

8:00AM WELCOME; SUMMARY OF DAY 1/DAY 2 INTRO MATT WEBER

8:15AM SPEAKER PANEL 3: ENVIRONMENTAL RESOURCING: BC’S ENERGY FACTOR

BING GIRAUD, TESSA GILL, SUSANNAH PIERCE & MORE

SALON DEF

9:15AM KEYNOTE 2: GOVERNMENT REPRESENTATIVE(S) TBD SALON DEF

10:15 AM BREAK: MORNING TEA & POSTER SESSIONS FOYER

11:00AM MOTIVATIONAL SPEAKER ALAN OISHI SALON DEF

ACADEMIC/TECHNICAL SESSIONS VARIOUS SALON 123

12:00 PM LUNCH

SUB THEME: FIFTY SHADES OF GREEN

AFTERNOON EVENT SPEAKER LOCATION

1:30PM KEYNOTE 3 - TBD SALON DEF

2:00PM SPEAKER PANEL 4: A NEW ERA OF HIGH PERFORMANCE BUILDINGS

ROB BERNHARDT; SUKH JOHAL; MONTE PAULSEN

SALON DEF

3:00PM AFTERNOON BREAK AND NETWORKING SESSIONS LOBBY

3:30PM PECHA KUCHA FAIR SALON DEF/123

5:30PM CLOSE OF CONFERENCE/DINNER PREPARATION SALON ABC

6:30PM PRE-GALA RECEPTION SALON ABC

7:30PM GALA DINNER/KEYNOTE 4/DANCING JON MONTGOMERY SALON DEF

TUESDAY, JULY 25TH – Green Developments: The New Era

PROUDLY SUPPORTED BY

PRESENTED BY

IN ASSOCIATION WITH

16

CONSTRUCTION ECONOMIST SPRING 2017

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Chair’s Message

Matt Weber, PQS(F) PAQS 2017 is fast approachingreetings all and best wishes from all of us here at the CIQS Board to you and yours .

After an unseasonably wintry winter out here on the West Coast, including snow in March (!), we are finally ready to put the shovels and salt away for good and get back to business .

The last few months have seen a flurry of activity on many fronts, as various projects have been pushed toward or across their respective finish lines . Of primary importance has been our flagship industry event: the annual PAQS 2017 Congress and Green Developments: The New Era sustainability conference . This is a polite reminder that if you have not at least reserved your hotel room yet, you may miss out! We have had almost 200 confirmed bookings since registration opened – a higher than average number considering the event is not until July 24

(though it is coming up fast!) . As this year’s event is a more public one than in previous years, we are forecasting higher demand than supply of tickets . Register now at paqs2017.com/register. Our daily attendance cap for any one day is just 500, so space is extremely limited!

In other news, we will soon have our very own app for iOS and Android! The Board is working diligently with a developer to produce an in-house mobile application that will keep you on the cutting edge of all things Quantity

Surveying in Canada . Our membership base is up, including many younger members and we are seeing interest in the QS profession from all corners of the academic and professional world . 2017 is shaping up to be a most promising year .

That said, I must mention a pressing matter that needs direct attention, one that I am asking you take a few minutes today to help address . As we all know, keeping people engaged online is key to maintaining a healthy and vibrant industry, whatever the sector . For our efforts to bear maximum fruit, our members must contribute en masse to the spread and reach of this information . Whether it is a regular news announcement, a promotional blast or our major international conference, the solution is the same: follow, like and repost. Please take some time to visit the CIQS’ various social media pages on Twitter, Instagram, Facebook and LinkedIn, follow and like each profile, and say a few words in support of our endeavours . Managers and business owners, please instruct your employees to follow your example .

G

Did you know the CIQS is now

on Twitter and LinkedIn? If you want to stay connected and contribute to discussions across Canada, follow us on Twitter or join our LinkedIn Group. We look forward to hearing from you.

Stay Connected

While you are at it, search for ‘PAQS2017’ on the same social media platforms and show your support for the biggest event in CIQS history! Besides the compelling content related to green development, we promise an unrivalled entertainment extravaganza with the best Vancouver has to offer, including a full social events slate, top keynote speakers, political figures and musical guests such as rocker Nick Gilder and Chilliwack’s Bill Henderson, among others . I cannot over-stress how important this is for our industry as we face the challenges of a changing world and we hope each of you will be a part of it .

If you need some extra motivation, we are also announcing a nationwide contest open to anyone on social media . Using the hashtag #takemetopaqs, entrants will post on the Facebook contest page why they want to be in Vancouver for PAQS 2017 and Green Developments: The New Era . A winner chosen at random will receive a trip from anywhere in Canada to Vancouver, and three nights at the Westin Bayshore!

I am looking forward to seeing you all in July .

The Board is working diligently with a developer to produce an in-house mobile application that will keep you on the cutting edge of all things Quantity Surveying in Canada.

6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2017 To return to Table of Contents CLICK HERE

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Message du Président du Conseil

JPAQS 2017 approche à grands pas

e me joins au Conseil exécutif de l’ICÉC pour vous transmettre, ainsi qu’à vos proches, nos meilleurs souhaits .

Après un hiver anormalement neigeux ici sur la côte ouest, en plus de la neige en mars (!) nous sommes finalement prêts à ranger nos pelles et notre sel une fois pour toutes et nous remettre au boulot .

Les derniers mois ont été mouvementés et remplis d’activités sur plusieurs fronts . Plusieurs projets ont avancé et certains ont été menés à terme . Dans les mois à venir, l’événement primordial est le Congrès PAQS 2017 Green Developments: The New Era, une conférence sur le terme du développement durable . D’ailleurs, voici un rappel amical, si vous n’avez pas encore réservé votre hébergement, il se peut que vous ratiez l’occasion de le faire! Nous avons reçu près de deux cents réservations confirmées depuis l’ouverture de l’inscription . C’est un nombre plus élevé que la moyenne considérant que l’événement aura lieu seulement le 24 juillet (même si cela arrive vite!) . Étant donné que l’événement de cette année est plus ouvert au public que les années précédentes, nous prévoyons une demande plus élevée que le nombre de billets disponibles . Prenez note que les places sont limitées à 500 personnes par jour . Inscrivez-vous dès maintenant à l’adresse paqs2017.com/register.

Par ailleurs, nous allons bientôt avoir notre propre application pour iOS et Androïd! Le Conseil travaille assidûment avec un concepteur pour produire une application mobile maison qui vous gardera à l’affût de tout ce qui concerne l’économie de la construction au Canada . Notre base de membres est en hausse, incluant plusieurs nouveau jeunes membres . Nous constatons

également un intérêt grandissant face à la profession d’économiste en construction et ce, dans tous les coins du monde académique et professionnel . L’année 2017 s’annonce très prometteuse .

Ceci étant dit, je dois porter votre attention sur une question plus pressante . Je vous demande donc de prendre quelques minutes aujourd’hui afin de nous aider à l’adresser . Comme nous le savons déjà, l’engagement sur les médias sociaux est une clé au maintien d’une industrie vibrante et en santé, peu importe le secteur . Pour que nos efforts soient le plus rentables possible, nos membres doivent contribuer d’une façon importante afin de promouvoir cette information . Que ce soit l’annonce d’une nouvelle, d’une action de promotion ou de l’information portant sur une conférence internationale majeure, la formule est la même: suivez, aimez et partagez. S’il vous plaît, prenez le temps de visiter les différentes pages de réseaux sociaux de l’ICÉC sur Facebook, LinkedIn et Twitter . Suivez et aimez chaque profil et publiez quelques mots pour exprimer votre appui envers nos initiatives . Gestionnaires et propriétaires d’entreprises, encouragez vos employés à suivre votre exemple .

En même temps, cherchez PAQS2017 sur les mêmes plateformes de réseaux sociaux et démontrez votre

soutien envers le plus grand événement de l’histoire de l’ICÉC! En plus d’un contenu fascinant relié au développement vert, nous promettons une expérience inégalée de divertissement avec le meilleur de ce que Vancouver a à offrir . Cette expérience inclut une gamme d’événements sociaux, des conférenciers de haut niveau, des figures politiques et des artistes invités tels que le rocker Nick Gilder ainsi que le chanteur et guitariste Bill Henderson, du groupe Chilliwack . Je ne peux qu’insister sur l’importance de cet événement pour notre industrie surtout dans le contexte actuel où on fait face aux défis liés aux changements mondiaux . Nous espérons que chacun d’entre vous fera partie de cet événement .

Pour vous motiver davantage, nous annonçons également un concours national qui est ouvert à tous sur les réseaux sociaux . En utilisant le hashtag #takemetopaqs, les participants publieront sur la page Facebook du concours pourquoi ils veulent être à Vancouver pour le Congrès PAQS 2017 Green Developments: The New Era . Au terme de ce concours, un participant sera choisi au hasard et gagnera un voyage à Vancouver, à partir de n’importe endroit au Canada, ainsi que trois nuits au Westin Bayshore!

Au plaisir de vous voir en juillet .

Le Conseil travaille assidûment avec un concepteur pour produire une application mobile maison qui vous gardera à l’affût de tout ce qui concerne l’économie de la construction au Canada.

Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 7CLICK HERE to return to Table of Contents

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Executive Director’s Message

Sheila Lennon, CAE

Enhancing services – Designation Holder Surveys

embership data is a valuable tool for any organization . It can help the CIQS to

understand our Designation Holders better by collecting both qualitative and quantitative data . The Institute is interested in its Designation Holders’ interests, expertise, demographics, birth dates, number of years in the profession, industry sector, volunteer interests, issues, expectations and much more . This information will help us connect and develop appropriate and valuable member services and benefits .

Collecting the data is always the challenge . The Institute is responsible for developing the right questions, requesting the information and providing different tools for collecting the data depending on what type of data the organization is looking for . The Designation Holders’ responsibility is to participate and provide updated information and feedback when requested and to maintain their membership profiles on a regular basis .

The main portal of information for the CIQS is the membership database . The membership profile holds the most information on demographics,

employers, work industries, job functions and membership fee histories . All of this information is important, and very useful – if it is complete and up to date . Think of it as an annual update by spending a few more minutes when renewing your membership to review your profile and ensure that information is correct and completed . The CIQS would then be able to analyze the data annually and provide reports on the trends in the Institute and industry .

Another form of collecting data is the membership survey . With busy schedules, the request to complete a survey can sometimes seem cumbersome and a waste of time . But, if an association does not ask its members what their needs are, it will not know how to service them to the best of its ability . Information from membership surveys provides a solid basis for the Board and Executive in the strategic planning process . Data collected and analyzed serves as a planning guide for new member services and benefits, provides an evaluation of current offerings that may now be deemed obsolete and provides us with insight on issues and concerns from our knowledge experts – YOU!

The CIQS will be developing membership surveys over the coming months . We encourage you to participate,

M

CIQS will be developing surveys. We encourage you to participate . Make your voice heard!

make your voice heard and assist us in getting to know you and your needs better . Designation Holders are the subject matter experts and CIQS wants to connect, collaborate and exchange knowledge with you . Connecting and starting the conversation will help both the Institute and the Designation Holder to grow professionally .

Housekeeping notes:• Membership Fees were due April 1,

2017 . A late fee of $50 will be automatically applied to your dues as of June 1, 2017 . Update your profile information during your renewal!

• Exam schedule has changed to October and February, see website for more details .

• Registration for PAQS2017 in Vancouver, July 24-26, 2017 is open . Please visit www.paqs2017.com to register and book your accommodation at the conference venue, The Westin Bayshore .

8 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2017 To return to Table of Contents CLICK HERE

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Arif Ghaffur, PQS

Editor’s Message

CHouse Buyers Engage in PartneringProvincial Loan Programs

onsider a scenario where you would like to buy your first home in a market where the prices of homes are so

high that you are unable to make a down payment and purchase a property . Then consider the notion that a public body, namely a province/territory of Canada, is willing to assist you in achieving that dream first purchase by offering a loan without interest to allow you to make that all important down payment .

As the Premier of British Columbia, Christy Clark stated, “Owning the place where you live is part of what being a Canadian is all about .” First-time buyers who thought they would never be able to afford a home are perhaps seeing this as an increasing possibility, as British Columbia has introduced a three years’ interest-free loan program, commencing in January 2017 . Some good news perhaps for BC’s 22,000 or so real estate agents! This loan program comes after British

Columbia introduced measures in 2016 aimed at cooling the housing market and increasing affordability by introducing: a) a 15% tax on foreign home buyers, covering 22 communities in the Vancouver region; b) hundreds of millions of dollars of funding for new rental projects; and c) a law to allow municipalities to tax vacant homes .

In parallel with these cooling measures, which have been on the back of concerns around foreign ownership and never-ending speculation and scrutiny on the role of real estate agents, British Columbia has recently launched what is a taxpayer-funded subsidy for homeowners .

This new program that offers interest-free loans in an economy where the Bank of Canada has warned of high debt exposure to the national housing market – a market that in 2016 reached record highs in prices and residential sales activity . The nuances of the loan program are:

• Families earning less than $150,000 per year are eligible;

• The buyer has to be pre-approved for an insured mortgage;

• The home cannot be priced more than $750,000;

• Applicants must be “first time buyers” and the home must be their primary residence;

• Buyers have to live in the property for 5 years;

• Buyers have to pay back the loan if they rent or sell;

• The Province will match down payments up to 5% of the price;

• The Province’s contribution will be capped at $37,500 ($750,000 x 5%);

• The term of the loan is for 25 years;• There is no interest or payment due in

the first five years;• Market interest rates apply after

five years;It is estimated that there will be roughly 15,000 first time buyers per year in British Columbia that will take advantage

Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 9CLICK HERE to return to Table of Contents

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of this new program . This comes at a time that the balance of high national debt and home affordability has come to the fore again as that the federal government, in October 2016, tightened mortgage rules by requiring borrowers to meet higher affordability thresholds to qualify for mortgages .

“First time buyers who think they will never be able to afford a home are perhaps seeing this as an increasing possibility, as British Columbia has introduced a three years’ interest-free loan program, commencing in January 2017”

“This new program that offers interest free loans in an economy where the Bank of Canada has warned of high debt exposure to the national housing market .”

At the time of introducing the tightened mortgage rules in October 2016, the Bank of Canada Governor Stephan Poloz said that, “The measures were aimed at mitigating risks to households and to the financial system, not at house prices per se .” Interestingly, the very next month saw sales across Canada decrease by 5 .3% .

BC Program Features:• Loans of up to $37,500 for Homes

up to $750,000

• Interest fee for 5 years with Term of 25 years

• Household earnings less than $150,000• First time buyers/primary residence• Available over the next 3 years

Housing Economic Backdrop:• 2016 record prices and activity• Lack of affordability• Tightened mortgage rules• Expected cooling of market• Bank of Canada debt warningEven though there is always the risk of interest rates increasing significantly in the future, the loan program initiative launched by BC has been welcomed by many, including some skeptics from the political opposition in BC . This initiative has also fueled the perpetual debates in other parts of Canada that seek to address housing affordability . Whilst the average price of a single family detached house in Vancouver is $1 .6 million, most agree that this program is not going to be the “silver bullet” that will drive up housing demand in a manner that drives up prices .

This program comes in parallel with a forecast decline in national residential sales numbers (-3 .3%) and average sale prices (-2 .8%) in 2017, as reported by The Canadian Real Estate Association .

The last time residential sales numbers decreased was in 2012, while the last time the average sale price fell was in 2008 . We will have to wait and see what happens in 2017 and beyond .

In the interim, house prices and affordability are not topics that are going to go away in a hurry – what is encouraging however is that there are steps being taken to address the issues . As the saying goes, “Where there is a will, there is a way,” although there are varying views on how impactful the “way” will be and what the national appetite is for making things happen .

In closing, I hope that you and your families have a wonderful spring . If you have feedback, suggestions and, of course, any articles that you would like to be considered for publication, please reach out to us at [email protected].

Don’t forget to register for PAQS2017 in Vancouver, July 24-26, 2017 – an event not to be missed!!!

Editor’s Message

Journal OnlineThe Construction Economist is also available in electronic format . Please visit the CIQS website www.ciqs.org and press the “Publications” tab .

× MCIQS× AQS× ACIQS

× PQS (In training)× PQS (R)× PQS (Intern)

Are you an aspiring Estimating Professional/ Professional Quantity Surveyor?

Education Policy Guidance NotesRecent Graduate, Associate, Mature Candidate or Direct Finalists are encouraged to review their current membership status to establish if it is time to progress towards Construction Estimator Certified (CEC) and Professional Quantity Surveyor (PQS) status .

The CIQS is pleased to confirm the implementation of the Education Policy Guidance Notes which confirm that the requirements for becoming a CEC and PQS have been streamlined since Fall 2015 in an attempt to assist aspiring professionals to achieve these much sought after professional designations .

For more information, please visit the CIQS website www.ciqs.org . The new Education Policy Guidance Notes are located in the ‘Members Only’ section (members must log-in to gain access) under the ‘Education’ tab (drop down menu will have ‘Policy Guidance Notes’) .

Using the correct designation?Below is a list of acceptable (provided that you are a member of CIQS and in good standing) and unacceptable designations . Acceptable designations: Professional Quantity Surveyor or PQS Construction Estimator Certified or CEC Économistes en Construction Agréé or ECA Estimateur en Construction Certifié or ECC Professional Quantity Surveyor (Fellow) or PQS(F) Économistes en Construction Agréé(F) or ECA(F)

Unacceptable designations:

Use your correct designation with pride. You have earned it!

10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2017 To return to Table of Contents CLICK HERE

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CIQS podcasts are on their way

CPD Corner

Wendy Hobbs, PQS

Iwould like to start this report with a quick reminder that we will be removing the Continuing Professional Development (CPD) calculator/tracker from the members’ area of

the website . We are currently looking into new tools to help our designation holders keep track of their CPD activities .

Speaking of CPD activities, did you know that a great way to collect some CPD points is through Informal Unstructured Activities?

What are those?Well, they include, but are not limited to,

self-directed study, conferences, technical sessions and any seminars related to the profession . So, if you have gone to a conference recently, or started doing research into new construction processes, or if you are learning new industry related software, those are all worth a point .

I would also like to announce that the CIQS has started a podcast series geared towards learning all sorts of new information related to construction and construction economics . The first ones

will be available to you shortly, so you can listen to them on the way to site, or during your commute, or while just going for a walk . As an added bonus, one hour of listening will equal one CPD point so you have no excuse for not listening .

Our first episode, featuring Dr . Taher Hassan, a Civil Engineering Technology instructor from SAIT Polytechnic, will be about using drone technology to aid in surveying sites .

Thank you and I hope to see you at the PAQS conference in July . It sounds like the planning team has some great speakers lined up, so we should all be able to clean up on CPD points there .

About the authorWendy is a professional quantity surveyor with experience across all sectors of construction in construction loan monitoring, cost consulting, and risk management . During her office duties she was involved in a wide range of complex projects of values exceeding $100 million . Wendy has been a guest lecturer in construction financing and quantity surveying at SAIT Polytechnic and the University of Calgary . This experience reawakened the joy of teaching and led her to join the instructional team at SAIT’s School of Construction .

She sits on the Board of Directors for the Canadian Institute of Quantity Surveyors – Prairies and Northwest Territories, as President . She also sits on the national board as the Prairies and Northwest Territories representative, CPD Director and as Registrar .

One hour of listening will equal one CPD point so you have no excuse for not listening.

Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11CLICK HERE to return to Table of Contents

• 2017/18 invoices for membership fees were sent to all Designation Holders in February, 2017

• Membership fees were due April 1• A late penalty of $50 .00 will

automatically be applied to your invoice if fees are not paid by June 1, 2017

Payment may be made online in the member’s only section, by telephone or by cheque . Payments made by mail must include accompanying licensing and CPD forms (if applicable) .

Important Dates re 2017/18 Membership FeesTo qualify for a reduction in fees as a

Retired PQS or CEC please note the CIQS definition of a Retired Designation Holder – ‘A Professional Quantity Surveyor (PQS) or Construction Estimator Certified (CEC) who has retired and does not accept employment or commissions within the quantity surveying profession during this retirement may transfer to the Retired category .’ Designation Holders who are eligible for this discount please contact Aliya Karim at [email protected]; telephone 905-477-0008; toll free 1-866-345-1168 .

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Stormtroopers have feelings too!

Professional Sustainability Corner

Craig Woodall

“…how often do we find ourselves drawn to someone who has had a similar background to us, whether it be education or experience, or maybe the projects on which they have worked .”

For over 30 years, I let my bias dictate how I thought about an entire group of people, thousands in fact . ‘They must be bad because I have been told they are bad .’ How often do we make that same mistake in our lives with people and groups that are far more important than fictional movie characters? We see what our bias and prejudice wants us to see . I am not talking about blatant, in your face racism . I am talking about the more subtle kind of prejudice that we do not even realize we have . The kind that pushes us to hire people who are similar to us, the kind that determines how connected we feel to certain groups of people, the kind that pre-disposes us to believe certain things, and to

I have been a Star Wars fan since a young age. I still remember watching the original in the movie theatre over 30 years ago and, for most of that time, I assumed that Stormtroopers were devoid of feeling, non-emotional soldiers with terrible aim. They obviously had a job to do, but I never stopped to think about them as individuals; they all looked the same so they must all be the same...right? It was not until the 7th movie in the series came out in late 2015 that one of them took on more of a role. He removed his helmet and showed that he had a human side: he cared, bled, and was empathetic and compassionate.

discount others . What I am talking about, and the focus of this article, is Diversity in its broadest sense . Typically, when we hear the word diversity, we focus on several common traits – race, gender, age, sexual orientation, etc . While it is really important for us to be aware of these, there are so many other factors that we totally ignore . Things like diversity of thought, education, social-economic status, athletic ability, personality type . As our brains have developed over thousands of years we have retained the basic instinct for survival, a gut reaction to situations which keeps us safe . While most of us no longer have to worry about being eaten by wild animals or attacked by a neighbouring village, our neurological systems are still wired for that way of thinking . Part of that system is sometimes referred to as our comfort zones; it is what prevents us from taking risks and stepping out into the unknown . Well, what better way to stay in our comfort zones than to surround ourselves with people just like us? When you walk into a networking event and find yourself in a sea of unfamiliar faces, it is your survival

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12 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2017 To return to Table of Contents CLICK HERE

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About the authorCraig Woodall is the President and Owner of Byng Leadership Inc . He has over 25 years of experience leading teams, projects, organizations and individuals . His passion is Leadership Development, helping people and organizations grow by maximizing their leadership potential .

system that immediately looks for ‘safe’ places: people who look like us, dress like us and generally look like they are from our social group . This survival skill has done a great job of keeping us alive for thousands of years but, in our current environment, it also prevents us from growing, learning and developing . Our unconscious bias means that we unknowingly discount thoughts and ideas from a wide variety of people . It also plays out in our hiring practices . How often do we find ourselves drawn to someone who has had a similar background to us, whether it is education or experience, or maybe the projects on which they have worked . We are instinctively inclined to hire them over another candidate . We have a ‘gut feeling’ that they will be a great fit for the team, whereas what we are actually doing is saying, “I did those things and I am OK so this person must be OK .” It is an unconscious way of justifying our own abilities and achievements .

The problem with surrounding ourselves with people who think like us, behave like us, act like us and generally agree with us is that we will never grow ourselves, our teams or our organizations . We will remain trapped in the state of accepting the now and dreaming of a different future, but it will never come to fruition .

So how do we change something if we do not even recognize that we do it in the first place? Well the answer is to simply be

inquisitive, of yourself and others . Try to catch yourself acting from a position of bias and ask yourself the simple question, why? Why do I believe this to be true? Why do I feel that I do not trust this person? Why am I choosing to talk to this individual at this moment? You cannot undo years of programming and conditioning overnight, but you can at least acknowledge that you have multiple biases and that they can sometimes drive your actions . So the challenge for you is to go out and chat with the next Storm Trooper you come across, get to know them, understand their differences, and how you can both be better as a result of taking the time to get to know each other .

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Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13CLICK HERE to return to Table of Contents

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An increasing number of quantity surveying (QS) firms are offering the service of ‘Project Monitoring’ or ‘Loan Monitoring .’

This is the due diligence service that Lenders require to protect their loans on construction projects . The construction Lenders want to know that the remaining construction can be completed with its loan, and they engage quantity surveyor firms for this cost advice during construction, to mitigate the Lender’s financial risks . The advice is meant to be an independent cost opinion (‘Financial, Regulatory, and Technical Reviews’) to:1. review the budget and confirm it is

adequate and to review regulatory and technical documents before the loan starts its advances, and

2. to update the Lender during construction on its financial risks, confirm the costs incurred and confirm that the remaining loan is sufficient to fund the remaining construction costs .

My understanding is that the project monitoring service in Canada was created to protect against a repeat of the painful construction lending losses experienced

Project monitoringEvolving QS Service, next steps?

in the 1990s . The construction industry is known to be slow to accept change or slow to respond to external market factors but, over the past two decades, more Lenders are asking for this quantity surveying service . Furthermore, Lenders are expecting more from the Quantity Surveyors performing these services . With developers or contractors expected to pay for the project monitoring service, the difficulty is matching the Lender’s need to the cost of these services . On smaller projects, the need is still there, but the commercial viability of the project is generally more delicate so the Lender sometimes adjusts the required level of QS advice . Similarly, with more QS firms providing the service, competition adds pressure on reducing fees . A reduction to the QS fees would make it increasingly difficult to meet the Lender’s needs and some quantity surveyors would reduce the review hours accordingly . The reduced service or reduced review hours pose an obvious ‘service gap’ potentially missing financial and technical issues, thus affecting the project and, ultimately, both the Lender and the QS firm .

In recent years, two industry initiatives have been launched to try reduce this service gap and to try to help Lenders and QS firms identify a standard for the project monitoring service . The Canadian Association of Consulting Quantity Surveyors (CACQS) launched its Best Practice Guide in 2014 . The guide is a collaborative initiative by 17 QS firms for the best practice on QS services and is meant to assist clients hiring QS services . This Best Practice Guide includes a section on the project monitoring service . After industry consultation with Lenders and QS firms in various Canadian cities, the RICS and the CIQS jointly launched their project monitoring guidance note in 2016 . The CACQS updated its Best Practice Guide in April 2016 and incorporated various components of the RICS/CIQS guidance note into its project monitoring section . These guide and guidance notes are represented to be helpful tools for:1 . Lenders to identify and pre-agree the

terms of engagement required for their Project Monitors, and

2 . making progress towards standardizing the service .

Donny AfonsoB.Sc. (Quantity Surveying),

PQS, MRICS

14 | CONSTRUCTION ECONOMIST | www.ciqs.org | Spring 2017 To return to Table of Contents CLICK HERE

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In addition, these industry documents can offer guidance to any QS firms that are new to the service or may feel pressured to reduce review hours . If these documents are not used, we could risk a dead-end to these initiatives and no progress on closing the service gap . How could these industry documents be used more often and what would be the next steps in implementing these documents? How would we encourage more QS firms and Lenders to refer to these guides as they pre-agree the required project monitoring reviews, and to have proactive dialogue on service gaps, if any?

Perhaps there could be a collaborative development of a standard form of contract similar to the services contracts produced by the architectural and engineering associations? The initial step could be to agree a Responsibilities and Scopes of Services Table, similar to the Schedule of Architect’s Services and Client Responsibilities used by the Royal Architectural Institute of Canada . This is a table of responsibilities enclosed with the standard form of contract used for Canadian architects . If as an industry, we produced a standard responsibilities table, it could be;1. appended or referenced in QS

proposals and/or QS contracts, and 2. enclosed in the first report issued to

the Lender .Another initial step could be to agree standard reporting ‘qualifying statements .’ Having worked with various firms I have seen inconsistency in how we communicate what QSs are not qualified to do . As an example, when a project monitor report includes comments on insurance documents, do we include a consistent qualifying statement such as;

About the authorDonny is a Principal with Pelican Woodcliff Inc ., a consultancy specializing in cost planning, project monitoring and cost control for private and public sector clients . Donny has a breadth of experience in providing construction cost and schedule advice and has acted as Lender’s Project Monitor on numerous projects . He has been a Board Director with the Canadian Association of Consulting Quantity Surveyors (CACQS) since 2014 and is currently the Secretary of the Board . The CACQS represents independent consulting quantity surveying firms and is under a memoranda of understanding with the RICS and CIQS in its mission to advance the consulting Quantity Surveying industry in Canada .

This is one of a few reporting areas where a QS firm may have itself exposed if no qualifying statement is included . This is a higher risk in cases where the Lender is not fully familiar with the QS’s role when it performs project monitor reporting . Perhaps there could be a collaborative development of a standard list of ‘qualifying statements’ for project monitor reports . As an alternative, we could have no further industry coordination . I would strongly recommend against this as it may render the industry guide and guidance notes as stagnant, with no progress in reducing service gap risk for Lenders and QS firms .

“Quantity Surveyors are not qualified to provide insurance advice. The comments in our Report are limited to reporting on the insured parties, amount of insurance and the expiry dates. We recommend the

Lender have its risk consultant review the full policies (when available) to ensure its interests are protected.”

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Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 15CLICK HERE to return to Table of Contents

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PAQS2017.COMINFO@PAQS2017 .COM

1-866-345-1168

P L E A S E C O N TA C T U S F O R M O R E I N F O R M AT I O N O N H O W Y O U C A N PA R T I C I PAT EFEATURED SPEAKERS INCLUDE DAVID SUZUKI, SARIKA

CULLIS-SUZUKI, JON MONTGOMERY, THE FOLLOWING,

PLUS MANY MORE!

JULY 24–26, 2017 | WESTIN BAYSHORE

B E A PA RT O F N O RT H A M E R I C A’ S P R E M I E RSUSTAINABLE DEVELOPMENT CONFERENCE

REGISTRATION

IS NOW

OPEN

P R O G R A M AT A G L A N C EMONDAY, JULY 24TH – Green Developments: The New Era

SUB THEME: DELIVERING HIGH-PERFORMANCE BUILDINGS COST EFFECTIVELY

AFTERNOON EVENT SPEAKER LOCATION

1:00PM MOTIVATIONAL SPEAKER TERRY SMALL (BRAIN GUY) SALON DEF

2:00PM SPEAKER PANEL 2: CLIMATE CHANGE RISKS AND OPPORTUNITIES

RALF NIELSEN, CARLA GUERRERA & MORE

SALON DEF

3:00PM AFTERNOON BREAK AND NETWORKING SESSIONS

3:30PM - 5:30PM BUILDING INNOVATION - BEAR CAVEBEAR CAVE PANELISTS

SALON DEF

TECHNICAL AND ACADEMIC SESSIONS VARIOUS TBD SALON 1, 2 & 3

5:30PM CLOSE OF DAY; COCKTAIL RECEPTION

7:00 PM EVENING SOCIAL OUTING THE BLARNEY STONE, VANCOUVER

SUB THEME: LIVING WITHIN PLANETARY BOUNDARIES

MORNING EVENT SPEAKER LOCATION

7:00AM REGISTRATION OPENS WESTIN BAYSHORE VANCOUVER

8:00AM OPENING CEREMONYFIRST NATIONS PRESENTATION

TEWANEE JOSEPH MATT WEBER

SALON DEF

8:30AM FEATURED SPEAKER PANEL 1 THE ROAD TO VANCOUVER 2020

SEAN PANDER, MARY POLAK, THOMAS MUELLER, SHAYNE RAMSEY, & MORE

SALON DEF

9:30AM BREAK: MORNING TEA & POSTER SESSIONS FOYER

10:15 AM KEYNOTE ONEDAVID SUZUKISARIKA CULLIS SUZUKI

SALON DEF

11:30 AM LUNCH FOYER

SUB THEME: WORKING SMARTER WITH NATURE AND GREEN INFRASTRUCTURE

MORNING EVENT SPEAKER LOCATION

7:00AM REGISTRATION OPENS N/A WESTIN BAYSHORE VANCOUVER

8:00AM WELCOME; SUMMARY OF DAY 1/DAY 2 INTRO MATT WEBER

8:15AM SPEAKER PANEL 3: ENVIRONMENTAL RESOURCING: BC’S ENERGY FACTOR

BING GIRAUD, TESSA GILL, SUSANNAH PIERCE & MORE

SALON DEF

9:15AM KEYNOTE 2: GOVERNMENT REPRESENTATIVE(S) TBD SALON DEF

10:15 AM BREAK: MORNING TEA & POSTER SESSIONS FOYER

11:00AM MOTIVATIONAL SPEAKER ALAN OISHI SALON DEF

ACADEMIC/TECHNICAL SESSIONS VARIOUS SALON 123

12:00 PM LUNCH

SUB THEME: FIFTY SHADES OF GREEN

AFTERNOON EVENT SPEAKER LOCATION

1:30PM KEYNOTE 3 - TBD SALON DEF

2:00PM SPEAKER PANEL 4: A NEW ERA OF HIGH PERFORMANCE BUILDINGS

ROB BERNHARDT; SUKH JOHAL; MONTE PAULSEN

SALON DEF

3:00PM AFTERNOON BREAK AND NETWORKING SESSIONS LOBBY

3:30PM PECHA KUCHA FAIR SALON DEF/123

5:30PM CLOSE OF CONFERENCE/DINNER PREPARATION SALON ABC

6:30PM PRE-GALA RECEPTION SALON ABC

7:30PM GALA DINNER/KEYNOTE 4/DANCING JON MONTGOMERY SALON DEF

TUESDAY, JULY 25TH – Green Developments: The New Era

PROUDLY SUPPORTED BY

PRESENTED BY

IN ASSOCIATION WITH

Page 17: BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES ...€¦ · Electrical Estimating Certificate Mechanical Estimating Certificate Residential Construction and Home Inspection

PAQS2017.COMINFO@PAQS2017 .COM

1-866-345-1168

P L E A S E C O N TA C T U S F O R M O R E I N F O R M AT I O N O N H O W Y O U C A N PA R T I C I PAT EFEATURED SPEAKERS INCLUDE DAVID SUZUKI, SARIKA

CULLIS-SUZUKI, JON MONTGOMERY, THE FOLLOWING,

PLUS MANY MORE!

JULY 24–26, 2017 | WESTIN BAYSHORE

B E A PA RT O F N O RT H A M E R I C A’ S P R E M I E RSUSTAINABLE DEVELOPMENT CONFERENCE

REGISTRATION

IS NOW

OPEN

P R O G R A M AT A G L A N C EMONDAY, JULY 24TH – Green Developments: The New Era

SUB THEME: DELIVERING HIGH-PERFORMANCE BUILDINGS COST EFFECTIVELY

AFTERNOON EVENT SPEAKER LOCATION

1:00PM MOTIVATIONAL SPEAKER TERRY SMALL (BRAIN GUY) SALON DEF

2:00PM SPEAKER PANEL 2: CLIMATE CHANGE RISKS AND OPPORTUNITIES

RALF NIELSEN, CARLA GUERRERA & MORE

SALON DEF

3:00PM AFTERNOON BREAK AND NETWORKING SESSIONS

3:30PM - 5:30PM BUILDING INNOVATION - BEAR CAVEBEAR CAVE PANELISTS

SALON DEF

TECHNICAL AND ACADEMIC SESSIONS VARIOUS TBD SALON 1, 2 & 3

5:30PM CLOSE OF DAY; COCKTAIL RECEPTION

7:00 PM EVENING SOCIAL OUTING THE BLARNEY STONE, VANCOUVER

SUB THEME: LIVING WITHIN PLANETARY BOUNDARIES

MORNING EVENT SPEAKER LOCATION

7:00AM REGISTRATION OPENS WESTIN BAYSHORE VANCOUVER

8:00AM OPENING CEREMONYFIRST NATIONS PRESENTATION

TEWANEE JOSEPH MATT WEBER

SALON DEF

8:30AM FEATURED SPEAKER PANEL 1 THE ROAD TO VANCOUVER 2020

SEAN PANDER, MARY POLAK, THOMAS MUELLER, SHAYNE RAMSEY, & MORE

SALON DEF

9:30AM BREAK: MORNING TEA & POSTER SESSIONS FOYER

10:15 AM KEYNOTE ONEDAVID SUZUKISARIKA CULLIS SUZUKI

SALON DEF

11:30 AM LUNCH FOYER

SUB THEME: WORKING SMARTER WITH NATURE AND GREEN INFRASTRUCTURE

MORNING EVENT SPEAKER LOCATION

7:00AM REGISTRATION OPENS N/A WESTIN BAYSHORE VANCOUVER

8:00AM WELCOME; SUMMARY OF DAY 1/DAY 2 INTRO MATT WEBER

8:15AM SPEAKER PANEL 3: ENVIRONMENTAL RESOURCING: BC’S ENERGY FACTOR

BING GIRAUD, TESSA GILL, SUSANNAH PIERCE & MORE

SALON DEF

9:15AM KEYNOTE 2: GOVERNMENT REPRESENTATIVE(S) TBD SALON DEF

10:15 AM BREAK: MORNING TEA & POSTER SESSIONS FOYER

11:00AM MOTIVATIONAL SPEAKER ALAN OISHI SALON DEF

ACADEMIC/TECHNICAL SESSIONS VARIOUS SALON 123

12:00 PM LUNCH

SUB THEME: FIFTY SHADES OF GREEN

AFTERNOON EVENT SPEAKER LOCATION

1:30PM KEYNOTE 3 - TBD SALON DEF

2:00PM SPEAKER PANEL 4: A NEW ERA OF HIGH PERFORMANCE BUILDINGS

ROB BERNHARDT; SUKH JOHAL; MONTE PAULSEN

SALON DEF

3:00PM AFTERNOON BREAK AND NETWORKING SESSIONS LOBBY

3:30PM PECHA KUCHA FAIR SALON DEF/123

5:30PM CLOSE OF CONFERENCE/DINNER PREPARATION SALON ABC

6:30PM PRE-GALA RECEPTION SALON ABC

7:30PM GALA DINNER/KEYNOTE 4/DANCING JON MONTGOMERY SALON DEF

TUESDAY, JULY 25TH – Green Developments: The New Era

PROUDLY SUPPORTED BY

PRESENTED BY

IN ASSOCIATION WITH

Page 19: BRITISH COLUMBIA • PRAIRIES AND NORTHWEST TERRITORIES ...€¦ · Electrical Estimating Certificate Mechanical Estimating Certificate Residential Construction and Home Inspection

1. Background: Project delivery in the North American construction industry has been facing a series of challenges and opportunities over time . Some of the challenges that the industry faces include:• Declining Labour Productivity:

Labour productivity index as reported by Statistics Canada (Anon ., 2016) shows that productivity in the construction industry rises at a slower rate than the national rate . Between 2010 and 2014, labour productivity for the Construction sector increased 0 .8% per year on average . In comparison, labour productivity for the wider Canadian Economy increased 1 .2% per year .

Integrated Project Delivery - an overview of its purpose and promises

• Narrow Margins: The typical margin of a construction company averages around 5%, therefore construction companies have very little room for error and must negotiate terms and conditions to protect, if not to increase, this margin through change orders .

• Low Collaboration and Conflicts between the Stakeholders: Traditional project delivery strategies such as Design-Bid-Build have a reputation of strictly allocating scope and risks among the owner, the engineer and the contractor . The traditional methods also rely extensively on competitive bidding, which pushes down margins and hard-codes the contractual allocation of scope and risks .

• A highly diversified industry with many players: There were 138,795 employers in the Canadian construction industry up to November 2014 according to Statistics Canada . These companies have vastly different capacities, capabilities and geographic focus .

• Rising Capital Costs: Many projects experience rising costs which negatively impact the initial cash flow projections that justified the project in the first place . Some of the factors which account for this include: unrealistic expectations with respect to cost, schedule, approval time and productivity; inaccurate quantities, low attention to access and

Clive Lawrence MBA, SCMA, CCCA, CCME, PMP

Jerry Crawford PMP, PQS, GSC

Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 19CLICK HERE to return to Table of Contents

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constructability challenges; disparate computer systems and programs that cannot communicate with each other .

In spite of the many challenges the industry faces, there are unbounded opportunities arising from:• New and more collaborative

approaches in delivering projects, such as integrated project delivery (IPD);

• Lean construction and Lean project delivery;

• Technological advances such as building information modeling and building information management;

• The expanded use of drones and robots to capture all the physical and dimensional information about the site and construction progress;

• Radio Frequency Identification (RFID) tagging of plant, inventory and equipment deployed at construction sites to measure and track efficient usage of equipment .

2. Characteristics of IPD: IPD as defined by the American Institute of Architects (AIA) is a project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste and maximize efficiency through all phases of design, fabrication and construction . The Canadian Construction Documents Committee (CCDC) has defined IPD as “a method of project delivery distinguished by a contractual arrangement among a minimum of owner, contractor and design professional that aligns the business interests of all parties . IPD motivates collaboration throughout the design and construction process, tying stakeholder success to project success .”The key characteristics of IPD are:• Early involvement of key participants• Optimized risk allocation and sharing

of rewards• Joint project management• Alignment of the interest of all parties

to collaborate deeply• Increase relatedness .

3. A Brief History and Evolution of IPD: The name Integrated Project Delivery was coined and trademarked by a group of contractors in Florida who successfully utilized the strategy to bring value to owners and who later formed a company called IPD Inc . The Lean Construction Institute later licensed the right to use the term Integrated Project Delivery from IPD, Inc . The Lean Construction Institute combined the ideas from IPD Inc . with relational contracting strategies that they were researching in Australia and other countries, and created the first relational contract for the US construction industry (Wilson, 2014) .

However, integrated project delivery is evolving into the next generation of project delivery system, lean project delivery (LPD) . Lean Project delivery is a project management process that strips away unnecessary effort, time and cost in the planning, design and construction of capital projects to deliver what the owner values (Spata, n .d .) . The ten key features of lean project delivery are:• The system is the focus, not the parts• As variation is reduced, reliability

increases• Contingencies mutually defined around

“sticky” variability• Necessity self-imposed to force

innovation• Flow where you can, pull where you

cannot, push where you must• Action taken at least responsible

moment• Product and process are designed

together• Standards are starting points for

improvement• All product life cycle stages are

considered in design• Alignment of interest (Spata, 2010)Lean project delivery borrows and modifies many of the cutting edge manufacturing techniques that were introduced by Toyota .

4. Selecting a Project Delivery Strategy: The selection of a project delivery strategy is one of the most important decisions an organization can make . According to

Tim McManus, Vice President of Capital and Infrastructure Projects at McKinsey & Company, it is essential to first determine the owner’s priorities for a project before evaluating which delivery method is appropriate . Factors to consider include (McManus, n .d .):• Access to funding and cost of capital• Risk assessment, position and appetite• Schedule, milestones and timelines• Innovative technology and systems

involved in project scope• Community and local business

considerations• Regulatory and environmental

considerations• Local construction marketplace

capacity• Design and project scope definition• Regulatory and permitting• Land and site control• Owner’s organization capabilities• Current local market place• Project and owner priorities .Mckinsey & Company has observed that there is a significant trend around the world towards non-traditional project delivery methods away from EPC, DBB and other traditional project delivery methods; however, one would be well advised to approach the selection of a project delivery strategy as objectively as one can, since all projects are different and there is no standard delivery model that fits all scenarios .

Economic recessions, more than any other aspect of a business cycle, have a significant impact on the construction industry psyche and play into the decision in selecting a better project delivery strategy . IPD significantly reduces integration risks by allocating responsibilities and risks for project development and execution quite differently than other delivery methods .

5. Selecting Participants for an IPD Project: The owner conceptualizes the project, assesses the economics, and then develops criteria for selection of the other key participants to the project . Large owners may develop their selection criteria

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and may either select these participants from existing pools of qualified contractors or may choose to select participants from other reference projects . The initial discussions will start after a confidentiality or non-disclosure agreement has been established among the key participants, and financial health checks have confirmed their respective economic viability .

It is desirable but not mandatory that the architect and the construction company have a history of working together . Therefore, it is typical that by selecting the architect/engineer the owner will by default be selecting the constructor or vice versa . When selected, the participants then establish a tripartite primary agreement wherein the project objectives, risk and reward are addressed . The first key deliverables under the primary agreement during the project conception stage are:• High level scope and deliverables• Budget and estimates• Due diligence investigations• Site selection• Facility programming• Facility performance criteria• Project schedule .

6. Negotiating Primary Agreements: Negotiating an IPD agreement requires a fresh perspective, unencumbered by traditional contracting concepts . In many instances the contract negotiator must “unlearn” rules that have served him or her well (under traditional project delivery strategies), but are not functional or relevant to an integrated project (Ashcraft, 2012) .

Howard W Ashcraft, Jr . outlines the key negotiation considerations when negotiating IPD contracts as follows:• The goal of the IPD agreement is to

create a project where all participants benefit by its success and are equally motivated to avoid its failure

• Finding the common interests and getting the deal right is the first step in negotiation

• Consider starting negotiations with a negotiation workshop to develop a common understanding of what IPD is, why it works and how it differs from traditional project delivery approaches

• Deal first, contract language second• Negotiation is not about contract

language• Start with the desired outcomes, then

the processes and behaviours needed to achieve the outcomes and then the structures needed to support the processes and behaviours

• Define the principle elements of the commercial terms and record them in a key terms summary

• The final step is to create a contract that fully expresses the agreement documented in the key terms summary .

7. IPD Contract Scope and Contractual Liabilities: When the IPD agreement is executed, what will be designed and how it will be constructed (and which party will be responsible) is not yet known because IPD assumes that work will be performed by the best party for the task . Thus one cannot specify everything in detail although during

the project configuration phase the parties will create a task matrix which identifies areas of both sole and shared responsibility . In addition most IPD agreements have some level of joint management by the principal parties . In order to achieve the owner’s goals the parties are expected to develop the most appropriate methods for completing the work thus the attitude and approach as it pertains to the scope of work must be flexibility and not specificity . Another important feature of the IPD contract are mutual liability waivers among the parties (Ashcraft, 2012) .

8. Pitfalls with Standard Construction Agreements: Standard contracts include risks allocation provisions that are based on lessons learned from previous experiences . Contract managers must resist the urge to draw on those references as those past experiences will only serve to “clog the contract with terms that obscure the fundamental business transaction and do little to help the parties achieve success .” The IPD agreement should focus on the authority of the parties to act, rather than specifying how they should act in some future contingency . The contract drafter should delegate responsibility and empower the team to address issues, manage the project, and solve problems (Howard W . Ashcraft, 2014) .

9. Joining Agreements: Contractors and designers typically subcontract large portions of their scopes of work to sub-contractors and sub-consultants .

Figure #1 (Howard W. Ashcraft, 2014):

Contract Exhibits

Project Manual

Develop business case

Identify goals and concerns

and limitationsTeam Selection

Pre-Contract Interviews

Contract Negotiation Workshop

Project Kick-offCommence

Design/ Pre-Construction

Owner’s Business Model

RFPProject Business Model Summary

Draft IPD Agreement

Final IPD Agreement

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If IPD seeks to energize the people actually doing the work, it must clearly engage subcontractors and consultants earlier in the process . Moreover, if IPD is to provide the owner with a sufficient buffer against cost overruns, the subcontractors and consultants, or at least the key participants, must also share in the risk/reward structure (Ashcraft, 2012) .

Because IPD is a collaborative, trust–based delivery method, the consultants and subcontractors chosen must embrace IPD and must be able to work cooperatively with the other parties . Thus, in most IPD structures, the subcontractors and sub-consultants are jointly chosen by the owner, designer and contractor team . The team has interview and veto rights over consultant and sub-contractor choices .

There are two primary methods for incorporating the key consultants and subcontractors: sub-agreements and joining agreements . In the sub-agreement approach, the key IPD elements are flowed through the prime agreement (designer or contractor) into the sub-agreement (consultant or subcontractor) . This includes key risk and reward terms as well as any liability limitations and waivers . The at-risk compensation of the subcontractor or consultant is a portion of the at-risk compensation of its respective prime . In almost all instances, the business structure of the sub-agreements mirrors the business structure of the IPD agreement, except that the subcontractors and consultants are less involved and have no or limited voting rights at the project management level .

In a joining agreement approach, the key subcontractors and consultants execute an agreement that amends the IPD agreement to add them as a party . The risk/reward provisions are amended with each added key subcontractor or consultant to reflect the amount of compensation the added party has placed at risk . If all parties are added to a single agreement, the IPD agreement must distinguish between types of parties when determining issues, such as joint project control .

The level of subcontractor and consultant involvement will affect the amount of profit at risk . Ideally, all subcontractors and consultants would be within the risk/reward group, but this level of participation is neither practical nor necessary .

10. Compensation Strategies Under IPD: The typical approach in developing a budget and price for an IPD project is that the Owner, the engineer and constructor jointly agree on a target budget . The other point worth noting is that the parties to the primary agreement also agree to a target profit . While the owner pays all direct cost in the event of an over-run the target profit portion is at risk for all participants .

In a basic IPD agreement, the primary metric is whether the project is achieved within the target budget . Because the parties are using target value design, the traditional design contingency allowance is somewhat redundant . Contingencies are still important, but the focus is on their use as management tools, not as pockets of protection (Howard W . Ashcraft, 2014) .

11. Dispute Resolution: Although many claims among the IPD participants are waived, there will still be issues that need to be resolved . Moreover, specific obligations, such as the obligation to make payment or a duty to indemnify, must be enforceable despite the waivers . The parties should carefully consider what issues must be resolved at the project level and which can be elevated to senior representatives or an independent decision making process . In general, informal resolution processes should precede formal measures and the parties should have primary responsibility for resolving disputes (Ashcraft, 2012) .

12. Conclusion: Increasing shareholder’s wealth by increasing profitability and optimizing integration risk are key underlying benefits of IPD . IPD emphasises shared ownership of the

project, thus making the project’s interest superior to that of the individual stakeholders . It has been reported that users of IPD can save 10–15% on capital cost as compared to say DBB delivery strategy . 10–15% savings could make a significant difference in terms of which project gets approved among the owner’s portfolio of projects, since not all projects are candidates for this delivery strategy .

This is a relatively new project delivery strategy in North America, but apparently it has deep roots and significant successes in the United Kingdom and Australia . North America and particularly Canada must therefore catch up quickly and embrace this new strategy .

About the authorsClive Lawrence is a supply chain management professional with over twenty years of experience, 11 of which have been in the heavy oil and gas processing industries . Clive is currently a Procurement Lead for AltaGas’ Northpine fractionation and pipeline projects . In his spare time he enjoys reading and spending time with family and friends . Jerry Crawford is a Director with KGC Consulting Services Ltd . With over 35 years and international experience working in Ontario, USA, South Africa & Bermuda as a Commercial Manager/Professional Quantity Surveyor and Project Manager . He has 35 years of extensive experience in the building and civil construction industry working predominately on transportation, energy, commercial, industrial, civil & building infrastructure projects during the procurement, pre-contract, execution and post contract phases . His primary focus is construction litigation support for contract disputes and preparing delay claims .

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Recently ranked North America’s top ranked Lenders Technical Advisor in 2016 (and in sixth place globally up from 28th the year before), BTY has opened eight new offices internationally over the past two years . This rapid growth is driving the property and infrastructure advisory firm to grapple daily with challenges facing companies committed to growth in Canada’s, and the world’s, expanding construction industries . BTY now serves private and public sector clients worldwide through 18 offices, eight of them across Canada . Three of the firms Directors: Darren Cash, Regional Director, Eastern Region; Michael Gabert, Regional Director, Prairies Region; and Connor Falls, Regional Director, Pacific Region, offer their views on industry issues that keep them up at night .

#1: Competition for top talent

“Competition for the best and brightest Professional Quantity Surveyors and Construction Estimator Certified professionals is intense,” says Darren Cash . “There is a sizeable and ever-growing scarcity of qualified professionals in Canada . Every firm in our profession

PRACTICE LEADERS on the top three challenges for Canadian industry

that wants to grow feels the lack acutely . We are no exception .”

A major reason why demand for qualified PQSs and CECs has far outstripped the supply is the robust growth of the Canadian construction industry . It has been expanding steadily – apart from a slight dip in 2015–2016 that was due in large part to the sharp decline in oil patch investment – with average annual growth of 3 .6% during the preceding four years .1 Another driver of competition is that the post-secondary system is not structured to provide enough ‘ready-made’ candidates to go through the PQS qualification process .• As construction increases,

so will demand The competition for top talent

won’t be abating anytime soon with existing multi-year, multi-billion dollar infrastructure projects under way in the transportation and energy sectors . There is also much more to come under federal and provincial government plans for large infrastructure investments across the country in general, and particularly in renewable energy .

With higher immigration and higher foreign investment helping to sustain demand for residential, commercial

and institutional building, Canada’s construction industry can look forward to continued robust growth . For our industry, this means battling to attract and retain the top talent that will help individual firms grow . What’s the answer? In the short term, importing talent is an option, but an expensive one . Another is paying higher salaries, but that’s only part of the solution .

• Championing company culture that builds career growth

“We have focused on championing a culture that creates opportunities for our people to acquire new skills that can help advance their careers,” Cash says . “The fact that BTY works on some of the biggest and most complex projects in Canada is a definite draw . We also provide training and education, as well as ongoing mentorship to attract and retain top talent . We have a very entrepreneurial culture, and having fun is a big part of it . Team camaraderie is very strong here . You are expected to speak up, and can expect to be listened to .”

That support for acquiring new skills and mentoring professional development has enabled BTY to expand its service line, develop expertise in new sectors

Three BTY Regional Directors share insights on what they see as our industry’s top issues – and how they are responding.

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and markets and compete for more complex, high-profile projects across the globe . In the longer term, the industry as a whole needs to do more to raise awareness of what we do and support the expansion of opportunities for professional training throughout the educational system .

“It is an ongoing effort, but it is the only sustainable solution to remedying the shortfall of talent,” says Cash . “The construction industry has become accustomed to the value that we add as a profession . Now we have to create greater awareness in the education system about the value PQSs and CECs add to society – to show how our services help ensure the delivery of a return on investment in the construction industry, which is one of the key sectors of the national economy .”

#2: Taming technology’s impact

Technology’s track record for transforming (and sometimes eliminating) occupations is well established, as any former switchboard operator can attest . New technology is also challenging white-collar professions in finance, marketing, law and even medicine to redefine how people add value .2

The construction industry, PQSs and CECs are not immune to the impact of new technology, says Michael Gabert . Building Information Modelling (BIM) software is one example of how technology is rapidly changing design, engineering, and construction . The 3D modeling system enables architects, engineers and builders to more efficiently plan, design, construct, and manage buildings and infrastructure .

“The benefits in increased efficiency are easy to see,” says Gabert . “Less obvious are the drawbacks . The information that goes into the models is only as useful as the understanding of the people who enter it . At BTY, we advocate embracing technology wisely, using BIM solutions in ways that make room for human interpretation of data . The kind of understanding that only a PQS or a CEC can bring to the process is critical for completing a final review that factors in the big picture – and can evaluate variances when details do not add up .

That clarity is part of the value we add in protecting our clients’ interests .”

Further challenges related to the use of BIM are finding and testing database and estimating software that can integrate with BIM, and training staff to manage the integration and implementation . It is no small switch to make when the PQS industry has been doing 2D takeoff for the last 60 years with long-established software programs . That challenge points to another area where the wise application of technology enables PQSs to add value: database creation and management . Capturing data is one thing; being able to assess, interpret, arrange, update and display it in a timely user-friendly way enables BTY to advise clients on cost and risk on truly like-to-like scenarios . That is what makes the technology so beneficial .

“Clients dazzled by any new technology do not always appreciate this,” says Gabert . “In the end, we add value by drawing out clarity from complexity and enabling clients to understand the implications of the numbers so they can make better decisions . New technology can speed the process, but the ultimate decision remains human .”

#3: Demand for greater speed to market

The third issue is the increasing pressure to get building projects to market as quickly as possible, says Connor Falls . The expectations of clients for faster delivery time seem to rise in lockstep with advances in technology, not only in construction but also in every business sector .

Speed has become an unqualified good . People expect faster communications, faster transportation and faster service all around . Think of how quickly people expect a response to a text message, or how impatient they can be in the line-up to clear security at the airport . “The push to shorten timelines in construction, ironically, can easily cause increases in delay and cost overruns,” says Falls .

It takes time to complete the design process and conduct the associated cost analyses properly . But the industry is moving in the opposite direction . Where once the design process took 12 months, now there is pressure to shorten it to

six months . “There is always someone who will accept the lesser timeframe in order to win the work,” says Falls . “But ultimately it serves neither the client’s interests nor that of the PQS firm . The haste undermines the ability to deliver value for money .”

There is no quick fix to what seems to be an industry-wide phenomenon . BTY’s response to the challenge is two-fold . The first is to improve our clients’ understanding of the risk that rushing delivery introduces . “This is really about going back to basics,” says Falls . “We try to demonstrate that taking the time to ‘do it right this time’ is in the client’s interest . It enables greater accuracy and cost certainty, and mitigates the risk that arises with unwarranted speed .”

BTY has always placed a high value on responding as quickly as possible to meet client needs – and equally on maintaining top quality of our due diligence . “We have always seen ourselves as stewards of our clients’ success,” says Falls . “Knowing how to work fast and thoroughly stands us, and our clients, in good stead .”

The second part is to ensure that we all uphold professional standards as one . “This admittedly is no easy task,” says Falls . “But when we as a profession fail to live up to our responsibilities as professionals, we fail the client and the profession . There is too much at stake to sacrifice standards just to save time .”

1. www.woodbusiness.ca/industry-news/news/report-on-key-trends-in-canadian-construction-3202#sthash.WmbTamRN.dpuf

2. fortune.com/2015/02/25/5-jobs-that-robots-already-are-taking

Authors

Connor Falls,PQSDarren Cash,

PQS

Michael Gabert, PQS

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Amanda Clack FRICS took office as RICS

President on 27 June 2016 . Amanda joined EY as a Partner in August 2015 as the Head of Infrastructure (Advisory) for the UK and Ireland . Prior to this she was a partner at another of the ‘Big Four’ accounting firms . Qualifying as a quantity surveyor and in project management, Amanda is a Fellow of RICS, the Association for Project Management, the Royal Society of Arts, the Institute of Consulting and the Institute of Management . She is also a Companion of the Institute of Management, is a Certified Management Consultant and an Affiliate of the Institute of Accountants for England and Wales .

How are you finding your trip in Canada?It is great to be here in Canada to witness the level of infrastructure investment occurring in the country . RICS is producing a research paper on the North American Market . It will look at what is happening in infrastructure and what advice should be given to both Government and Clients undertaking major infrastructure programs .

What are your objectives as RICS President?As President, my themes are:• Infrastructure – McKinsey research

estimates there will be a global infrastructure funding deficit of $57 trillion up to 2030 .

• Cities – 54% of the world’s population live in cities, and by 2050 the UN predicts that this will increase to 66% . Currently in Canada, 85% of the population live in cities . Investment in infrastructure brings greater connectivity for cities to work .

• Talent – Research shows that employers are concerned about attracting and retaining a more diverse talent pool to run the businesses of the future .

As President, I am the global ambassador for the profession and feel it is important to respond to the needs of our professionals but always act in the interests of the public . This is why these themes are my main focus during my term .

What are the infrastructure challenges and issues, in your opinion, faced by Canadian cities?The challenges and issues relating to infrastructure in Canada are similar to much of the developed world . We have taken our foot off the gas in terms of infrastructure investment . Infrastructure underpins the economy and attracts business . We are competing on a global platform, so it is crucial to invest in infrastructure for countries to remain competitive .

What role can cities play in relation to future growth?Cities are the heart of major development programs; they are where people want to live, work and socialize .

To ensure we create sustainable cities for the future, it is important to have strong leadership, vision blueprint and governance structure in place . These should also consider aspects such as green spaces, sustainability, future resilience and being ‘smart’ – which include combining technology, data and innovation to create more resilient cities . With a strong vision for our future cities, we can create the right environment for citizens, one that maintains heritage, a strong culture and a vibrant edge with green and community spaces .

What are your thoughts on current and forecast infrastructure initiatives in Canada? Canada’s infrastructure investment is impressive . I visited the Eglinton Crosslink Project – creating 19km of sub and surface rail . With 15 underground and 10 over-ground stations, this will have a huge impact on people’s lives, as they will be able to move around the city 60% faster than they do currently . What is particularly notable is that it will be done within a relatively short construction period, including maintaining the current network, installing new track and having trains in service by 2021 .

What has been your international exposure?I have had the privilege to meet with senior partners across the globe –

Quantity Surveyor to strategic leadership

“It is great to be here in Canada to witness the level of infrastructure investment occurring in the country.”

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from Japan, Singapore, Hong Kong and China to the US, Germany, Brazil and, most recently, South Africa . RICS is global and as a result has collaborated with many different countries developing smart cities for the future . Currently, RICS is working in coalition with 40 Quantity Surveying professions (including the CIQS) and disciplines around the world to create a new International Construction Measurement Standard for building and infrastructure . It will take out some of the risk associated with measuring in these two areas and create global consistency .

When does your term end?My term as President ends at the start of November 2017 . The new President will be John Hughes, a Canadian citizen who will be President in the 150th year of RICS .

Final thoughts on QS to strategic leadership?The role of the Quantity Surveyor (QS) is not fully understood in North America and there needs to be a bigger drive

“We are competing on a global platform, so it is crucial to invest in infrastructure for countries to remain competitive.”

to advocate and educate clients on the benefits that QSs bring to projects in terms of cost engineering, commercial management, project management and delivering value for money benefits . QSs, do not be afraid to blow your own trumpet – as ensuring mega infrastructure projects deliver is now more important than ever!

“Canada’s infrastructure investment is impressive.”

About the authorInterview conducted by Arif Ghaffur, PQS, Editor of Construction Economist

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Did you know that the CIQS is part of the International Cost Measurement Standard (ICMS) Coalition? This is an initiative of Quantity Surveying and Cost Engineering organizations across the world to standardize the way construction projects are measured . The CIQS has a strong presence on ICMS . Craig Bye is Joint General Secretary and Trustee for CIQS . Mark Gardin and Roy Howes are on the Standards Setting Committee and Ian Duncan is a trustee for PAQS .

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The CIQS and RICS held their 4th Annual Construction and Project Management Seminar on the evening of Thursday, November 17 in Oakville, Ontario . This year’s event focused on Ontario’s Construction

Lien Act and the challenges that firms face in working with the increasingly obsolete legislation . The event included dinner and numerous opportunities for attendees to network with industry peers from throughout Ontario and beyond .

Arif Ghaffur, chair of the organizing committee, invited this year’s event chair Sorina Du Toit (SDT Cost Management) to provide opening remarks and share the evening’s agenda with attendees .

Throughout the evening speakers provided the audience with insightful perspectives on where we are today with respect to Ontario’s Construction Lien Act, typical Lien issues and approaches and personal reflections on proposed Lien Act reforms . This included speaker views on the recently released Ontario Ministry of the Attorney General’s expert review of the existing Construction Lien Act . The expert review was released on September 26, 2016 and consisted of 550 pages and over 100 recommendations .

The evening’s first speaker Paul Hancock (Associate Construction Attorney, Goldman, Sloan, Nash and Haber LLP) provided an overview of the Construction Lien Act . Paul’s presentation examined the purpose of the act, precedents regarding breach of trust and holdbacks, vacating Liens and common misconceptions associated with the Act .

Maria Ruberto (Partner, Pallett Valo LLP) spoke about typical Lien issues and approaches . The three major issues outlined were jurisdiction and procedural, Lien preservation, and priority of Lien provisions . She also emphasized the vast differences between Lien proceedings in Toronto, compared to the rest of Ontario .

Roger Gillott’s (Partner, Osler, Hoskin & Harcourt LLP) presentation reflected on the proposed reforms to the Construction Lien Act and the impact they will have on those within the construction industry . The main recommendations discussed were related to promptness of payment, adjudication and mandatory holdback requirements . These included new guidance on what constitutes a proper invoice, when an invoice

can be issued, identifying the adjudicator and when claims can/cannot be submitted to the adjudicator .

Roger informed the audience that the Ontario Ministry of the Attorney General was currently consulting with key stakeholders to gauge the recommendations within the report . He also noted that things were moving quickly and that new Lien legislation could be expected as early as spring 2017 .

The speakers were followed by a panel discussion and spirited Q&A session moderated by Brendan Bowles (Managing Partner, Glaholt LLP) . This was followed by the awarding of the 2016 Construction & Project Management Volunteer Award by Ian Duncan (Principal, Atrium Consultants) .

This year’s recipient was Lenny Simonelli, Director of ReXcon ConstruXion Corporation . Lenny was honoured for his tireless efforts to promote the quantity surveying profession and CIQS across Canada . These efforts included chairing town halls at colleges throughout Ontario and organizing numerous CIQS events . As a professional, Lenny was lauded for the high ethical standards that he has maintained in his work throughout his career . He was applauded for his work as a mentor for students in the National Student Bid Competition and other student initiatives that sought to grow the QS profession . Lenny was also commended for his work as the editor of the CIQS – Ontario eNewsletter .

Ontario’s Quantity Surveyors converge for another sold-out Construction and Project Management Seminar

“Throughout the evening speakers provided the audience with insightful perspectives on where we are today with respect to Ontario’s Construction Lien Act.”

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This year’s event was preceded by a pre-event presentation entitled ‘Quantity Surveying – 2020 & Beyond .’ The presentation explored the history of Quantity Surveying firms in Canada and how they are well-positioned to embrace new, arising opportunities (including in infrastructure) . Presentations were given by Bruce van Ryn-Bocking (Executive Director, CACQS), Alan Hand (Senior Partner, A .W . Hooker), Louis Yves LeBeau (President, Macogep), and Arif Ghaffur (President, Lakeland Consulting) .

Speakers concluded that QS firms and practitioners throughout Canada will strengthen the industry by working together with a unified voice and shared values . They spoke of the need for more spending and action in terms of the construction of new infrastructure throughout Canada . Diversifying business approaches and moving away from comfort zones were deemed as essential for further industry growth . The enduring importance of quantity surveying as a profession was highlighted by echoing perpetual industry problems that continue to impair the efficient completion of projects (including labour productivity issues, cost overruns on large construction projects, and staff training deficiencies) .

The RICS and CIQS have both worked to provide industry partners with the training resources that they need to build the capacity of their workers to more efficiently and effectively complete projects on-time and under budget . For example, the RICS, has developed an Online Learning Academy (olaamericas.rics.org) with distance learning courses and web classes devoted exclusively to quantity surveying, construction project management, and BIM . The RICS also offers customized training that can provide companies with the learning solutions that they need to

“Speakers concluded that QS firms and practitioners throughout Canada will strengthen the industry by working together with a unified voice and shared values .”

overcome any operational challenges or staff knowledge gaps that exist within their organizations .

For those in attendance, the seminar and pre-event once again showcased Ontario’s thriving quantity surveying profession and the bright future that the industry has ahead of it . After yet another successful seminar, there is already excitement and buzz being generated for the 5th Annual Construction and Project Management Seminar in 2017 .

Sponsors: A special thanks to this year’s sponsors – A .W . Hooker Quantity Surveyors, Glaholt LLP, Glynn Group Inc ., Lakeland Consulting Inc ., Berkeley Research Group (BRG), Goldman Sloan Nash & Haber LLP, Pallett Valo LLP, Atrium Consultants, the Construction Economist, SDT Cost Management Inc ., Truest Quantity Surveyors and George Brown College .

Real Estate Development Management

Loan Monitoring - on behalf of lender

Construction Cost Estimating

Cost Consulting

Mechanical & Electrical Services

Opportunties in

Finnegn Marshall Press Advert.indd 2 22/11/2016 00:42Spring 2017 | www.ciqs.org | CONSTRUCTION ECONOMIST | 29CLICK HERE to return to Table of Contents

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In 1990, the Hibernia Oil Development provided the kick-start to the booming construction economy in the 90’s which has continued, fairly consistently, well into the new Millennium . The string of Mega Development Projects relating to not only the Energy Sector, but also the Mining Sector, roll quite easily off the tongues of most of the construction workforce here in the Province: Hibernia Platform (GBS & Topsides); Terra Nova (FPSO); White Rose (FPSO); Hebron (GBS & Topsides); Lower Churchill Hydro Development (NALCOR) and the Voisey Bay Nickel Mine and Smelter (Vale/INCO) .

Each of these mega-projects not only provided work for the local construction workforce, but also drove the provincial economy and provided the stimulus for commercial development, housing, and the provincial/municipal budgetary allocation for construction work on buildings and infrastructure . In short,

the Province was booming and the construction economy led the charge . The construction workforce resource was maxed out, not only dealing with the provincial workload, but also in supporting the massive development in the Alberta Oil Sands . Newfoundland and Labrador became a ‘have’ province in the Canadian Federation .

This economic boom, however, is quickly disappearing . The reduction in the price of oil has seriously reduced both provincial revenues and the capital budgets of the energy companies, resulting in a major cut in construction spending . Significant unemployment in the construction workforce is anticipated and we are about to enter a long period of depressed economy . Hopefully infrastructure spending on Canada’s mainland can provide employment for the skilled local workforce .

The inception of CIQS – NL in 1993 resulted from the onset of this development boom . At least half of the original members were sourced from the Hibernia GBS

construction Project – all of whom were working in the commercial division of the main GBS contractor . The remaining members were working at the more traditional cost planning and project budgeting services for government and major private development . Using the old UK model, half were operating in the Chartered Surveyor world and the other half were operating in the Contractor world .

This division in the Affiliate membership has continued to this day and, despite the surge in construction development, the recruitment of new members has been a challenge . Traditionally, in Newfoundland and Labrador, the various skills offered by our professionals have been handled by the Engineering and Accounting professions and it is very difficult to change the expectations of the client base . Certainly, in the oil and gas sector, the reputation of the quantity surveyor was tarnished during the North Sea energy development, and this reputation was embedded in the culture of the major oil development companies that arrived in east-coast Canada .

An update from Newfoundland and Labrador The construction economy and the related Quantity Surveyor contribution

Roy Lewis. PQS (F). Ret.Professional Quantity Surveyor

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Furthermore, the wide-ranging skillset of the PQS and CEC is not well appreciated by the major engineering companies the revenue source of which is the maximum deployment of professional and technical staff . Despite this situation, there have been opportunities for our professionals in the energy sector with deployment in key positions in project development teams . Such deployment has utilised the commercial skills in the PQS/CEC portfolio, such as estimating advice; contract procurement and management; strategic planning and development; cost planning and project performance monitoring .

Whilst some of our members have been associated with energy development, the majority of our local team has been actively involved in the more traditional elements in the construction sector: one half working in the Owner world of cost planning, project monitoring and mortgage monitoring; and the other half working in the Contractor world in a wide range of disciplines ranging from estimating and business development through project monitoring and project control .

In response to the request to prepare this article the writer polled the local membership to determine which disciplines were supported in their work activities . Listed below are the disciplines identified in the poll:• Cost Planning and Project Budgeting• Mortgage Monitoring

• Project Management• Project Controls• Project Monitoring including:• Progress/Performance/Financial

Management and Reporting• Contract/Subcontract Procurement• Contract/Subcontract Management• Estimating• Strategic Planning• Legal

And here are listed the sectors supported:Construction• Building• Civil• Structural• Electrical• Mechanical• Mega ProjectsEnergy• Building • Civil• Structural• Electrical• Mechanical• Offshore Development• Subsea Development• Support ServicesCommercial• Banks• Loan Centres• PP3• Private Client(s)Government• Federal• Provincial• Municipal

All of the disciplines and sectors are supported by our local members . Our membership, whilst small in number, is multi-talented and whilst some are in the later stages of their careers the writer is encouraged by the skillset(s) and enthusiasm demonstrated by our younger members .

To conclude I will share a story from the 90’s boom .

A PQS and a Contract Engineer were in a bar sharing some beers after a long and challenging day in the office.

The Engineer asked the PQS to explain what was so special about the QS profession.

Engineers and Architects design buildings and structures, replied the PQS, but the QS leaps over these buildings and structures in a single bound.

About the Author:As the owner of Cambrian Management Services, Roy provides commercial support to the construction and energy sectors . Originally a product of the construction industry in the United Kingdom, he has been an active quantity surveyor in Canada since 1977 and currently resides in St . Mary’s Bay, Newfoundland and Labrador . He attained his Professional Quantity Surveyor designation from CIQS in 1993, and has sat on the Institute’s board for 18 years . He served as national CIQS President in 2011 .

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On December 6, 2016, Arif Ghaffur, PQS, Editor of the Construction Economist, presented at a Construction

Specifications Canada dinner event held at the Toronto Cricket Skating and Curling Club . The event was attended by over 50 professionals . The topic of the presentation was Completeness of Contract Documents & Issue Management . Following a reception and dinner, Arif addressed a number of items including industry trends, agreement & contract documents, issues & contract documents, study of construction documents, issues with documents and potential impacts .

The presentation explored what makes ‘complete’ contract documents, the typical issues and how these are dealt with in a structured manner on engineering and construction contracts . In a detailed presentation, Arif shared his thoughts that a lack of performance on construction projects is driving a change in what he described as ‘Classic,’ ‘Emergent’ and ‘Desirable’ behaviours that affect Contract Documents and Issue Management . Arif identified that mistakes and delays were often a result of continuing industry trends including uncertainty and confusion, inadequate time, immature design, incomplete scope and restricted budget .

The presentation identified the reforms to the Construction Lien Act in Ontario which he described as having broader

implications for Canada, with a particular focus on a report commissioned by the Ontario Ministry of the Attorney General which included recommendations such as: a) the adoption of a prompt payment regime requiring payment within 28 days of submission of a proper invoice; b) mandatory speedy adjudication of construction disputes, wherein a decision will be rendered within 30 days; and c) mandatory holdback release, (subject to specific set-off notices), with permissible phased release of holdback on lengthy or segmented projects .

In addition to reforms that would need to be recognized in contract documents, Arif

referenced a 2015 industry study by the Canadian Construction Association that examined the quality of documents via workshops . The study resulted in a report from the CCA Standard Best Practices Committee which concluded that, “… .the quality of construction documents remains an industry-wide issue, and one that affects owners, consultants and contractors alike . There is no party that is infallible, and all stakeholders have an important role to play in addressing this issue .” During the presentation, Arif provided examples, issues and resolution options .

The dinner event was co-sponsored by the CIQS . Sheri Thompson, President of CIQS-Ontario said, “We know that contract documents are very topical, particularly in relation to the proposed reforms which will require even more diligence in ensuring contract documents are complete . As Quantity Surveyors, we remain well positioned to help our employers and clients right across Canada as they realize their projects . Arif provided an insightful presentation based on over 30 years of experience and a detailed knowledge of the subject matter . We at the CIQS and the CSC Toronto Chapter thank Arif for his presentation .”

Arif Ghaffur, PQS, presents at Construction Specifications Canada Completeness of Contract Documents & Issue Management

The quality of construction documents remains an industry-wide issue, and one that affects owners, consultants and contractors alike.

QS Online Cost Consultants Inc.Halifax, Nova Scotia

p. 902 405-1504 [email protected]

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Charles Christopher Clare “Bucky”(WWII Naval Veteran RCNVR, RCL Br. 34, Member, Partner in Clare Randall-Smith & Assoc. Quantity Surveyors of Toronto, Past National President of Canadian Institute of Quantity Surveyors, Past Member of American Association Cost Engineers)

He passed peacefully at Royal Victoria Hospital in Barrie on Friday, March 3, 2017 in his 92nd year . Bucky, beloved husband of the late Edith (nee Richards), the late Helen (nee Purvis), and Barb Gardy; loving father of Alan (Candis) of Florida, Nancy (Peter) Seed of Orillia, and Kevin (Theresa) of Pennsylvania, will be lovingly remembered by his 16 grandchildren, 6 great-grandchildren, and now great-great-grandchildren .

Charles Christopher Clare “Bucky” was a member of the Canadian Institute of Quantity Surveyors for many years. He served as President from 1973-75 and received the Gordon Pattison Award of Merit in 1978.

John C. DownwardWe are saddened to announce the passing of John C . Downward on January 10, 2017 . John was born in Stoke upon Trent, Staffordshire, England on June 19, 1919 .

John enlisted in the Territorial Army in 1939 and served in the 292nd Royal Engineers Field Company . He was captured by the Germans in 1941 and while in the POW camp, one of the senior British soldiers suggested he pursue studies for the Royal Institute of Chartered Surveyors . He was freed by the Allies in 1945 and discharged in 1946 . He then obtained a junior position with the Quantity Surveying firm of Doughly & Partners in London . All the while he was working, he spent his evenings at his studies and passed his exams and in around May 1949 was accepted into the Royal Institution of Chartered Surveyors .

John moved to Canada in 1957, securing a job in Toronto with Anglin Norcross Construction . He was offered the second in command position in their new branch offices in Vancouver . The Vancouver office closed in 1965 but John decided to remain in Vancouver . In May 1969, John went into business on his own, stepping out fully into independent Quantity Surveying .

John was instrumental in establishing the Quantity Surveying Society of British Columbia (QSSBC) . In 1975, QSSBC became the first autonomous provincial chapter of the Canadian Institute of Quantity Surveyors . John Downward sat as its President for the first two terms . In his retirement, he wrote a history of the QSSBC, which currently operates under the operative of CIQS – BC . John received his CIQS Fellowship in 1982 and the Gordon Pattison Award of Merit in 1993 .

Robert “Poppie” StoryIt is with great sadness that we announce the passing of Robert “Bob” Story on January 15, 2017 . Bob

passed away peacefully at Camp Hill Veterans Memorial Hospital surrounded by his loving family . Bob was born to Harry and Annie Story on March 19, 1923 . He left home at age 18 to serve overseas during WWII in the engineering division of the Canadian Army . Upon his return, he met the love of his life, his wife of 69 years, Mary Piccott . They had a wonderful life together and raised four children . Bob began his career as a draftsman at Halifax Dockyard . He later worked as a Quantity Surveyor and taught at the Nova Scotia Institute of Technology . Bob was a founding member of the Nova Scotia Quantity Surveyor Association and was awarded a lifetime membership in 2010 .

Bob was a talented athlete and enjoyed playing and watching many sports, especially golf and hockey . He had many friendships with whom he enjoyed both through his work and sports . Bob was bright and capable, and loved his work . He was happy to be able to work even in his final years of life . Bob will be greatly missed by his family who loved him dearly . He is survived by his: wife Mary; children, Sandra (Harvey), Deborah (John), Robert, Heather (Grant); grandchildren, Erin, Gillian (Andrew), Joshua (Brittany), Hannah, Chloe and Abby; great-grandchildren, Olivia, Oliver, Ellie, Elijah and Isaac . Bob was loved and respected by many for his warm heart, cheerful demeanor and kind actions . Our heartfelt condolences go out to Bob’s family and friends .

In memoriam

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CIQS – British ColumbiaCarlos D . Aquino, PQSJoseph Cutler, PQSRachael Foster-Scoles, PQSChristopher Kelly, PQSKarl Magallanes, CECChristopher Switzer, CECGabriel Teodorescu, CEC

CIQS – Members at LargeKaseem Adewumi, PQSBaby Alvarade, CECSalvador Jr . Gamboa, CECStephan Georgette, CECTom Marsh, PQSAdetoun Maseyi, CECAndrey Orlovsky, PQSHaseeb Rahman, CECMohamed Samath, CEC

CIQS – OntarioAimal Amin, PQSJames G . Allen, PQSMonireh Sadat Badri, CECMu Chen, CECHoang Minh Chu, CECOran Cleary, PQSJoseph Colautti, CECRyan Concannon, PQSAiping Cui, PQSAllan Duncan, PQSChris Duncan, CECNicholas Dvernechuk, CECJean-Francois Gosselin, PQSPaul Gyozo, PQSAndy Horton, PQSShereen Khalifa, CECJoselin Molina, PQSAlvin Pamintuan, CEC

Pablo Rangel, CECAlex Ratushnyak, CECBehrooz Roozbeh, CECUsama Shraideh, CECAlbert Dennis Thomas, CECNadeera Ubeysiri, PQSAdele Wojtowicz, CECDavid Wood, PQS

CIQS – Prairies & NWTEdwin Alconcel, CECAlbert Allan Antolin, PQSAJ Blackmore, CECJeffrey Cameron, PQSCharlene Chua, PQSDarren Doyle, PQSHamidreza Korourian, CECBrenton Lumsden, PQSKelly Moretta, PQS

Congratulations to the following ‘Designation Holders’ who have qualified as a PQS or CEC (including reinstatements):

Nepthali Nacu, CECTaiwo Odimayomi, PQSJamal Tavasoli, CECS . Thabendran, CECAndrew Trifaux, CECMartin Tokar-Tokarcyzk, PQS

CIQS – QuébecMichael Atalla, PQSHicham Malaeb, CECJean-Francois Perras, CEC

CIQS – MaritimesAlex Paul Crocker, CECDarren Hayman, CEC

Company Page Phone # Website/E-mail

Altus Group 36 905-953-9948 www .altusgroup .comBTY Group 25 416-596-9339 www .bty .comCB Ross Partners 18 416-487-3330 www .cbross .caCONECON Consultants Inc . 15 604-522-8970 www .conecon .caExactal 2 512-768-8111 www .exactal .comFinnegan Marshall Inc . 29 416-929-0006 www .finneganmarshall .comGeorge Brown College 3 800-265-2002 www .coned .georgebrown .caGoldman Sloan Nash & Haber LLP 31 416-597-9922 www .gsnh .comLakeland Consulting Inc . 35 905 829 4000 www .lakelandconsulting .comLCO Construction and Mgmt 4 514-846-8914 www .lcogroup .comMacogep 13 514-223-9001 www .macogep .comOntario General Contractors Association 8 905-671-3969 www .ogca .caQS Online Cost Consultants Inc . 32 902 405-1504 www .qsonlinecostconsultants .comQSM – Mechanical Quantity Surveying 13 416-949-8540 www .qsmcon .caTD Insurance 4 866-269-1371 www .melochemonnex .comTruEst Quantity Surveyors 9 519-266-6762 www .truestqs .com

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