Volume 11 2016 1

PLU

SDEL

TAVolume 11 2016

The Three Deadly Sins of RFPs

How Great Client Experience Creates Ultimate Clients

Our Journey to Advocacy

# PM

4235

7026

The Best Floors Start With Our FinishAlocon • Apollo • Belmont • Bravo Windsor • Centis • Diplock • Duron Ontario

Duron Services • Metro • Structural • Tri-Con • Tri-Con Haid • United

For over 40 years, CFCA members have defined the highest quality in Concrete Floor construction. Building a concrete floor with good performance & sustainability requires very careful planning, materials selection & field execution. Make sure your next project is a success by prequalifying “members of the Concrete Floor Contractors Association”. Call us at 905-582-9825 or visit us online for more information.

Concrete Floor Contractors Association

www.concretefloors.ca

We shape a better world Our employees tell us that they’re proud to work at Arup. This pride comes from the firm’s unique values, which stem from our independent ownership structure. It comes from working with talented people — leading experts keen to share their knowledge. And it comes from helping to create some of the most exciting projects in the world, supported by unrivalled learning opportunities.

Our Toronto and Montreal offices are an integral part of Arup’s North American practice. Established more than 20 years ago, we now employ more than 1,200 people in 12 offices across Canada, the United States, and Latin America.

www.arup.com doggerel.arup.com Clockwise from top: Toronto Pearson International Airport, Toronto, ON ©Timothy Hursley; York University Bergeron Centre for Engineering Excellence, Toronto, ON ©doublespace photography; New Champlain Bridge Corridor for the St. Lawrence River, Montreal, QC ©Her Majesty the Queen in Right of Canada; MassMotion for Union Station Revitalisation, Toronto, ON

Volume 11 2016 3

E ngineers transform Ontario into a better and safer place to live, providing a higher quality standard of living and stimulating economic activity crucial for our province’s growth. Engineers take their responsibility to public safety

and welfare very seriously and a healthy business environment is critical to ensure public safety. That is why Consulting Engineers of Ontario’s mission is “to promote a sustainable business environment.” It’s not only in the interest of CEO member firms but in the best interest of the people of Ontario whom our members serve.

Since the birth of the association, CEO has been initiating dialogue with government and industry stakeholders to promote fair procurement and business practices. CEO has been raising your voice to bring positive change to the business environment that cultivates innovative engineering solutions, good design and fair business practice. Most importantly, we have been working to help clients and the public see our profession’s work not merely as an act of engineering, rather as an important economic activity.

What I learned from my time at CEO is that our success is directly impacted by our own members’ commitments to their association. Member support adds strength to the voice of CEO and brings clients to the table for discussion. However, not all members have a good knowledge of what CEO does.

That’s why we created Plus Delta magazine. While it is a new medium of communication, it is also an effort to bring you up to speed on the association’s current priorities; the priorities articulated by members. This issue includes a story on CEO’s advocacy journey, an interview with Geoff Pound and Reg Russwurm who contributed greatly to the revision of the MEA-CEO Standard Agreement, and a look at CEO’s new Strategic Plan.

The success of any association is a function of committed and engaged members. Members are CEO’s greatest asset and the very reason we work diligently to create a sustainable business environment. Take this publication as an invitation and get to know CEO better to give us your continued support.

Barry Steinberg, M.A. Sc., C.E.T., P.Eng. Chief Executive Officer Consulting Engineers of Ontario

FOREWORD

4 PLUS DELTA

Contact us today at www.mediaedge.ca or Robert Thompson 647-494-4229

Our winning products and services include:

• Magazines• Directories• Show Guides• Events• Supplements

• Profi les• Buyers Guides• E-Newsletters• Custom Content Marketing• Social Media

• Blogs• E-Books & White Pages• Website Ad Sales• Video• Sponsorship Sales

Ready, Set...

Partner with us for your fast track to success!

MediaEdge is proud to be the CSAE’s exclusive content provider of print and digital media.

ME_CSAE_Ad_2015.indd 1 15-06-25 2:47 PM

Volume 11 2016 5

6 A Matter of Contract

8 Planning For Success

10 The Three Deadly Sins of RFPs

12 Our Journey to Advocacy

ceo.on.ca

Contents Volume 11 2016

All rights reserved. The contents of this publication may not be reproduced by any

means, in whole or in part, without the prior written consent of the Consulting

Engineers of Ontario.

Articles and information in this magazine represent the opinions of the writers and the information that, to the best of our knowledge, was

accurate at the time of writing.

Published by:

www.mediaedgepublishing.com

Sales Executives Nolan Ackman, Ashley Huston, Mike Manko, Brenda Ezinicki,

Kari Philippot

Sales Manager John Pashko

Publisher Michael Bell

Editor Ali Mintenko-Crane

Association Editor Diane Lee

President Kevin Brown

Senior Vice President Robert Thompson

Branch Manager Nancie Privé

Senior Graphic Designer

James T. Mitchell

Graphic Designer Kelli McCutcheon

@ConsultingEngON linkedin.com/company/consulting-engineers-of-ontario facebook.com/ConsultingEngON

24

20

16 How Great Client Experience Creates Ultimate Clients

18 Ten Clauses to Include in Your Contract

20 Volunteer Spotlight My CEO Experience

22 Project at a Closer Look: Built for Safety

24 SME Feature Passing the Torch: Selected Topics in Business Succession Planning

26 Professional Services Directory

Plus Delta is printed on 10% post-consumer FSC certified paper using soya based inks. When necessary to mail an issue in an enclosure, we use an environmentally-friendly, 100% oxo-degradable poly-wrap.

PUBLICATION MAIL AGREEMENT # PM42357026

6 PLUS DELTA

A MATTER OF CONTRACT

I n March of this year, CEO and Ontario’s Municipal Engineers Association (MEA) made some substantive revisions to the existing

client/engineer standard agreement for consulting services. The agreement was originally designed to assist Onta-rio’s 444 municipalities by outlining consistent terms and conditions for both clients and engineers—all with the aim of establishing fair procurement practices.

Plus Delta interviewed Reg Russwurm, P.Eng. and current president of the MEA, and Geoff Pound, P.Eng. and chair of the MEA/CEO liaison committee, repre-senting CEO. Russwurm is director of infrastructure and public works with the Town of the Blue Mountain and has been

C E O a n d M E A f i n a l i z e s t a n d a r d a g r e e m e n t

A MATTER OF CONTRACT By Jim Peters

with the MEA for eight years. Pound is vice-president of major projects with Morrison Hershfield.

Q. Can you describe what the stan-dard agreement is and what it covers?

Russwurm: “This agreement enables municipalities to be more efficient in doing business with consulting engin-eers. The template allows smaller municipalities in particular to save on the significant time and cost spent on creating a contract. It’s really a boiler-plate from which to craft a useful agree-ment between municipalities and engin-eers. It covers the terms and defines each party’s roles and responsibilities.”

Volume 11 2016 7

www.OrderConstructionDocuments

Here.ca

www.ogca.ca

Our online store can be your

one stop shop:

Order the CCA/CCDC documents you need

and pay online.

Order today at:

www.OrderConstructionDocumentsHere.ca

A Service Provided By

Pound: “The revised agreement is now more in line with current muni-cipal engineering business practices—a benefit to both municipalities and the consulting engineering industry at large. And by municipalities we mean local governments of all types—small towns, cities and counties throughout Ontario.”

Q. Why was there a need to update the 2006 version?Russwurm: “It’s always wise to revisit these existing agreements and ensure that they’re keeping pace with best practices.”

Pound: “The business of engineering and supplying services has changed over the past few years and so has the procurement of services by munici-palities. So there’s been a move away from paying engineering firms based on a percentage of construction cost towards a lump sum fee. In addition, business in general is more sophisti-cated and there were some necessary changes needed on the agreement to tighten it up. But the basic reason was to provide an updated procurement of services template that would work for both sides.”

Q. How is this agreement different from the last version?Russwurm: “Although we went through the document line by line, the changes are more of a tweaking than a wholesale revision. We wanted the document to be readable and easily understood by those municipal-ities who generally don’t draft a lot of these agreements—so it’s not filled with a lot of legalese. The whole process went very smoothly.”

Q. How widely is the standard agreement used by Ontario’s municipalities?Russwurm: “The use of the docu-ment is at the discretion of the muni-cipalities. Many municipalities still do their own thing—this is just part of our mandate to help and assist.”

Q. Can you explain common chal-lenges faced by municipalities when developing and delivering infrastruc-ture projects with engineers?Russwurm: “The most important chal-lenge is finding the right engineering firm to make sure you’ve got the best match for the project. The right selec-tion, of course, maximizes the overall value of the process.”

Pound: “It’s really like any project and I would use owning a home as an example. If you as a homeowner want to hire someone to do work on your property, you have to provide a clear idea of the scope of the work. It’s no different with multi-million dollar projects. So clarity is key in terms of what clients provide and what the engineer does—and the revised agree-ment is oriented towards that. Over the years, this agreement has certainly been useful in establishing clarity.”

Q. How does the agreement solve these problems?Russwurm: “The tendering process can be onerous, especially depending on the scope of the project, so it’s very important to have as much of the front-end detail done properly and smoothly. It’s helpful to have the roles and respon-sibilities of both parties defined up front to avoid misunderstandings, such as additional fees and services after the fact.”

Pound: “I was involved with revising the 2006 agreement as well so I have first-hand knowledge that the MEA/CEO agreement has stood the test of time. But local governments have continued to grow and evolve and so the agreement has grown along with that. The key factor is that people around the table modifying this agree-ment represent both parties in the equation—the client and the consulting engineering firm. So logically, the agree-ment should be reasonably fair to both parties by taking into account the issues that face both.”

Q. Will the agreement improve the municipalities working relationship with engineers?Russwurm: “It’s probably more helpful to some of Ontario’s smaller munici-palities who may not be engaged with projects at the same level or frequency as the bigger municipalities. Over half of the 444 are small, with fewer than 5,000 people. That’s why we’re here to help them.”

Pound: “I’ve been involved with many engineering agreements in my career. This agreement is one of the few that were borne out of discussion between both the client and the consultant. So this agreement, because it’s been drafted with input from both sides, should be easier to administer and is updated to reflect the times and the busi-ness climate.”

In closing, Russwurm says, “Overall the agreement revision process went smoothly and we’ve had some pretty good feedback from the municipalities. I would like to acknowledge the efforts of MEA board member John Thompson, P.Eng., from the City of Barrie, in particular for his efforts in leading the efforts on this. He was the champion.” Pound adds, “I would like to recognize the efforts and participation of all the members of the MEA/CEO working party that contributed to the successful update of the agreement.” •

8 PLUS DELTA

PLANNING FOR SUCCESS

By Diane Lee

S uccess is strong evidence that an organization has had a sound and appropriate strategy. Note the past tense. There is

no absolute certainty that yesterday’s strategy will continue to work in the future. Indeed, assuming so can put an entire organization at great peril.

While the two past strategic plans well advanced CEO’s mission statement, “to promote a sustainable business environ-ment for members,” it was time for CEO to re-evaluate its value and priorities to continue its success and enhance its value to members. A strategic review of the past plans began more than a year ago, qualitative and quantitative research of members, interviews and a planning workshop with the CEO Board of Direc-tors and external stakeholders.

The strategic plan 2016-2020 outlines three areas of focus – advocacy, busi-ness practices and member engagement. CEO plans to build upon its current advocacy efforts, promote fair business and procurement practices and keep members and the employees of members more engaged with the association.

A consensual perspective shared by the board of directors and industry stake-holders during the strategy planning session was that CEO is an excellent collective voice for advocating consulting engineers’ business interests to govern-ments and clients. The board also agreed that it is the right time to expand the association’s member outreach and engagement activities.

Peter Mallory, Chair of CEO Board of Directors, says “CEO is the authorita-tive voice of Ontario’s engineering companies, in the eyes of government,

PLANNING FOR SUCCESS

GOAL 1: Advocacy: To shape public policy, legislation and regulation of interest to members

Advocacy activities include:

• Government relations; shaping public policy, provincial and municipal focus

• Queen’s Park Day and City Hall Days

• Collaboration with other organizations

• Consultation with governments

• Media relations

GOAL 2: Business Practices:To achieve favourable procurement and commercial business practices among members’ clients.

Business Practices activities include:

• Client relations

• Procurement

• Contract language

• Business risk

• Client liaison committees

• Value based engineering

GOAL 3: Member Engagement: To achieve member investment of time, effort and resources in exchange for value from CEO.

Member Engagement activities include:

• Member consultation

• Member outreach and services

• Chapters

• Special interest committees/groups

• Communications

clients and the public. But first we need to be the authoritative organization in the eyes of our own members; the way our organization works, our endeavors must be supported by our members through their own actions. To do this, we need to know and understand our members better to achieve increased engagement.”

CEO Direct, a member relation manage-ment program launched this year, is the association’s newest way to connect with members. The program pairs 13

CEO board directors with the heads of CEO member firms. Members now can directly reach out to their repre-sentative director to learn about CEO’s latest advocacy efforts and bring the board’s attention to industry issues or challenges. Such direct member engagement will provide greater insights about member firms and help CEO monitor whether its advocacy priorities and efforts are aligned with those needed by member firms. •

THE STRATEGIC PLAN 2016-2020

Volume 11 2016 9

HERE ARE THE 2016-2017 BOARD OF DIRECTORS who will serve as your designated contact for any

questions or concerns.

CHAIR Peter Mallory, CH2M

DIRECTOR Bill Allison, Dillon Consulting Ltd.

DIRECTOR John McGill, Parsons

CHAIR ELECT Rex Meadley, C.C. Tatham and Associates Ltd.

DIRECTOR Steve Dyck, SNC-Lavalin

DIRECTOR Brian Ruck, GHD

PAST CHAIR Bruce Potter, B.M. Ross and Associates Ltd.

DIRECTOR John Krug, Stantec Consulting Ltd.

DIRECTOR Joe Sframeli, MMM Group Ltd.

TREASURER Jeremy Carkner, Morrison Hershfield

DIRECTOR Angela Iannuzziello, AECOM

DIRECTOR Dave Tipler, exp

SECRETARY Christine Hill, XCG Consultants Ltd.

(Above from left to right): Back row – Joe Sframeli, David Tipler, Bill Allison, Bruce Potter, John Krug, Barry Steinberg, Rex Meadley, Christine Hill. Front row – Steve Dyck, Peter Mallory, Angela Iannuzziello.

10 PLUS DELTA

THREE DEADLY SINS

I n a business world bursting with unknown acronyms, “RFP” is prob-ably one of the most universally understood—but perhaps in name

only. Requests for Proposals should be both a buyer’s and a vendor’s best friend—if drafted properly. But in much of the work contracted to engineering firms across Ontario, RFPs are still not being given the consideration, prep time and fairness they’re due.

Engineering companies in Ontario represented by CEO have been making a case for years that the current state of RFPs is badly in need of a makeover. So thorny an issue has the problem become that CEO and the Municipal Engineers

Association (MEA) recently revised their standard agreement template to reflect some of the ongoing concerns.

Bill Allison, P.Eng. and partner at Dillon Consulting Ltd. in Kitchener, is on the CEO’s board of directors. He also chairs the association’s Business Risk Committee, directly responsible for RFP reform and other issues related to clients and engineering firms in Ontario. He says, “RFPs that are unclear—such as poorly defined service requirements—produce suboptimal results. Ultimately these documents increase costs unneces-sarily and can contribute to dissatisfied clients and frustrated engineers down the road.”

THE THREE DEADLY SINS OF RFPSRequests for

Proposals are badly in need

of a makeover—for the benefit

of all

By Jim Peters

Volume 11 2016 11

1-800-265-9662 www.rjburnside.com

Engineers and Environmental Consultants

AVOID THESE RFP PITFALLSPoorly drafted RFPs come in a number of different forms, and usually suffer from the following:

• Awarding of the contract based predominantly on price.

• Onerous contractual obligations, such as indemnifications, third-party liabilities, warranties and holdbacks.

• Vague or poorly defined scope of work.

Bill Allison elaborates, “Price-based criteria alone take away from the value a client can realize on projects, no matter their size and complexity. Quality-based selection places an emphasis on innova-tion, creativity and a service-based approach to the job. These intangibles are more difficult to define—but equally important. So price-based criteria create a downside for both parties. Engineers don’t get the hours they need to add value to a project and the client might get a design that satisfies their basic needs but does not provide value.”

He adds, “Onerous contractual obliga-tions put engineers into a position of unacceptable, or uninsurable, risk. As a result, many firms are refusing to bid on projects where they consider the risks are inherently unfair. That puts engin-eering firms in a bind and it’s not helpful to the industry or the clients.” That’s why CEO and the Municipal Engineers Association recently revised the standard agreement; it adds more clarity and helps level the playing field between buyer and vendor.

HOW TO DEAL WITH A POORLY WRITTEN RFPThere are, of course, several ways to deal with a poorly constructed RFP, such as:

1. Seek clarification.

2. Qualify your submission in detail.

3. Don’t submit a bid.

He adds, “Engineering firms will often ask CEO to get involved on their behalf if an RFP is poorly constructed or objectionable. It’s usually in the form of an S.O.S. sent up from a number of member firms asking us to act under the more anonymous umbrella of CEO. So we’ll talk to the client’s buyer and send in written requests for clarification through the auspices of the Business Risk Committee. If the RFP is objec-tionable, we’ll explain our concerns in written form. Obviously we keep the relationship civil and cooperative and request a meeting to make our case. The results are a mixed bag—sometimes we’ll get some clarifications but not the full answer. Some clients are intractable and will tell us up front that nothing on the RFP will be amended. At that point we have the option of sending an advisory note to all of our members to make them aware.”

“But not submitting a quote is difficult—you simply can’t say no to everything. So if a firm is going to submit a quote with substantial risk they should be

creating a risk mitigation plan which forces it to think through the various risks and how they can be avoided or addressed. You can appreciate how that creates significant extra work on a pressing deadline,” Allison says.

Ultimately, of course, a good RFP allows the firm to be selected on its merits and provides the highest value to the owner for the overall project cost. When local governments are undertaking most infra-structure projects, engineering fees are actually a fraction of the construction cost. A quality design can save signifi-cant money in construction.

Without CEO’s involvement, it would have been worse particularly in terms of passing on unacceptable project risks to the vendor. Allison says, “But that’s why we continue to press local govern-ments on this issue through the work of our organization and committee. It’s important to remember that an improved RFP process is not only a win-win for the buyer and vendor—it’s a win for the taxpayer!” •

By Jim Peters

12 PLUS DELTA

COVER STORY

Volume 11 2016 13

A dvocacy is a critical part of CEO’s work. These efforts increase CEO’s presence and reputation with prov-incial and municipal officials, and

industry stakeholders. However, these efforts take time, require careful planning and precision. Proper advocacy needs to be thought of as being more like a marathon than a sprint. Just like a marathon, even the best preparations can be thwarted by factors beyond one’s control.

One of the most important reasons for a strong advocacy program is to educate government officials who may not have a good understanding about what services consulting engineers provide. “The work our members do touches virtually every aspect of an infrastructure project,” says David Zurawel, CEO’s director of government and stakeholder relations. This includes engineers’ involvement in designing a project, to delivering it, to maintaining it.

Three of the biggest advocacy issues on CEO’s radar are:

• The review of the Construction Lien Act;

• Defining Bill 6, the Infrastructure for Jobs and Pros-perity Act; and,

• Queen’s Park Day.

In February 2015, the province announced an independent review of the Construction Lien Act would be conducted to determine the effect-iveness of the then 33-year-old legislation

with respect to how it addressed issues such as promptness of payment and dispute resolution. CEO played an active role in contributing to the review because currently the Act is incon-sistently applied to engineering services and the issue of payment is of particular importance to its member firms. Inconsistent application of the Act is a problem, there needs to be clarity on how and when it impacts consultants and the services they provide; certification is a chief concern. “As contract administrators, we certify project payments, from owners to the people that do the work, so we have a significant stake in the success of these projects. If we certify payment for too little money, or if we certify too much payment, that’s a problem for us. There is a substantial risk for our members. The work our members do requires a lot of precision,” Zurawel says. The report and its recommendations are currently in the government’s hands and CEO is looking forward to its release.

In June 2015, the government passed Bill 6, the Infrastructure for Jobs and Prosperity Act, which requires the province to have a long-term infra-structure plan. Again, CEO is working with the government to produce regulations that will define what framework legislation is currently. “A key piece of that plan is asset management planning. Proper planning enables governments to consistently and accurately prioritize their investments so they can get the most value out of tax dollars,” says Zurawel. Under the Act, the province has until June 2018 to table its first plan. From there, it must renew the plan at least once

Our Journey to Advocacy

14 PLUS DELTA

every five years. From CEO’s perspective, this plan will help government make sound and accurate decisions to prioritize projects and manage their full lifecycle cost.

On October 17, 2016 CEO will hold its second annual Queen’s Park Day at the Ontario Legislature. This event sees CEO member delegations actively and directly speak with MPPs and their staff, educate them about the consulting engineering industry and its most important issues. Chief amongst these issues is the need for good contract language, says Zurawel. He says on project contracts at both the municipal and prov-incial levels – but particularly at the municipal level – there are concerns about the inequitable transfer of risk and respon-sibility to CEO’s member firms. Unrealistic expectations are placed on consultants in the form of aggressive indemnifica-tion and insurability clauses that are hampering much needed projects from being delivered on time and on budget. “What we’re increasingly finding with contracts is that owners are looking to transfer a disproportionate degree of risk to our members for things that we’re not even responsible for,” says Zurawel.

Zurawel uses the example of contracts containing third-party liability clauses. Imagine somebody rides on a bicycle by a project site, skids on some loose gravel somebody else had left there, falls and hurts themselves. That person may then sue the owner of the project, who would then, under the third-party liability clause in the contract, assign responsibility for the incident to those who signed the contract, even though they had nothing to do with the gravel being on the road. Zurawel says these measures are being taken by project owners to reduce costs.

CEO’s advocacy efforts are helping to change the language in contracts to eliminate unreasonable risk or at least try to mitigate risk so its members can sign agreements in good faith. Where changes can’t be made, CEO issues advisories to its members to make them aware of existing risks so they can make the most informed business decisions possible.

CEO is working to convince government to adopt the industry best practice for consultant procurement, where the emphasis driving project awards is on qualifications, not the

CEO IS WORKING TO CONVINCE GOVERNMENT TO ADOPT THE INDUSTRY BEST PRACTICE FOR CONSULTANT PROCUREMENT, WHERE THE EMPHASIS DRIVING PROJECT AWARDS IS ON QUALIFICATIONS, NOT THE LOWEST BIDDING PRICE.

Volume 11 2016 15

lowest bidding price. “This is what will lead to more value for taxpayer dollars because you are looking at innovation in design, rather than price,” says Zurawel.

Put together, these advocacy efforts not only help stakeholders better understand what CEO’s members do, but it also improves the business environment. CEO seeks to achieve this by coming to the table with thoughtful and reasonable solu-tions. “We don’t jump up and down,” says Zurawel. “We don’t yell. We don’t pound tables.”

One of the arms at CEO that plays an important role with advocacy efforts is the Government Relations Committee. This group acts as a conduit through which member issues are brought forward to the association. The group’s activities are aligned with CEO’s advocacy efforts.

To keep its members aware of what’s going on, CEO reaches out through multiple platforms to keep them in the loop, such as providing members with bulletins, advisories, communiqués and bi-weekly electronic newsletters. CEO’s website (www.ceo.on.ca) is also loaded with easy-to-find information.

Not surprisingly, advocacy takes time as it’s complicated by the competing interests of other organizations. While CEO

may believe it has the right solution, through factors beyond its control, that solution may not be implemented by government because it doesn’t fit the agenda of the day. “There are always other political forces or stronger advocacy forces working against you, other stakeholders who are actively working to keep you from achieving your agenda. Very rarely does anyone’s effort operate in isolation,” says Zurawel.

Adding to this is the reality that governments are big institu-tions with many moving parts, which complicates the process of getting an answer or seeing change implemented quickly.

These factors also ensure that every successful advocacy campaign is unique. However, what constitutes a successful campaign is not in question. Zurawel says the most successful advocacy associations subscribe to the three Ps of effective government relations: patience, persistence and perseverance; supporting well-balanced solutions that work for as many people as possible. For CEO, this means developing innova-tive solutions to infrastructure challenges and problems. “A sophisticated, committed and reasoned group of professionals will always have more credibility and be more successful in achieving what they’re looking for than those that are perceived as being motivated purely by self-interest. I think we’re recog-nized and respected for being the former,” says Zurawel. •

16 PLUS DELTA

CLIENT RELATIONSHIP MANAGEMENT

G reat client experience may be the single most important concept to managing any business

relationship. In consulting engineering, ensuring a great client experiences is key to being successful and yet it is a concept that many have yet to master.

Clients expect consulting engineers to find solutions to their problems and that full service firms may offer additional expertise required for the successful completion multi-disciplinary projects. However, a promise to complete a project or solve problems is no longer sufficient, nor is the ability to provide a full suite of capabilities enough to stand out from others. Clients want more.

Today, clients want you to know their business; they want you to deliver more than they expect and they want you to understand what makes them successful. Consultants need to be able to speak to clients with more than technical project knowledge. You need to know your client’s business beyond a single project and you need to know what is happening in their industry so you can offer the right solutions.

More than ever, companies are spending more time with clients with an under-standing that nurturing these relation-ships will likely result in more business. Interviewing clients is one of the most effective ways to gain direct insights that cannot be found anywhere else. Listening to clients and acting on their

By Mark Hunter

needs is how consultants begin to deliver on a great experience.

How often should consultants speak with clients? Every couple of years? Every year? While there is no magic formula, consult-ants should engage in relationship building every time they interact with a client.

Here is a scenario to consider. Let’s assume that you have taken care of the basics: a formal interview with a client takes place annually via a third party; you send all correspondences and event invitations that are relevant to the client’s business; and the client receives project updates on a regular basis. If you are doing these things, you are likely already delivering a better than average client experience, and with some additional effort be able to take this one step further to a great experience.

What is missing? What else can you do to stand out? In this question lies the answer. It is the “what else” that will differentiate you from the rest.

• Take time to forward information to clients that is relevant to their business and their success outside of projects you are working on.

• Stay up to date with industry trends so that you understand what clients may be worried about.

• Get to know what is going on in their life outside of work – birthdays, anni-versaries, graduations or other celebra-tions, where appropriate.

As you differentiate yourself from others you will begin to turn a good client into the ultimate client. Ultimate clients are loyal to you, actively refer you to others and value you both as a person and a professional. These relationships do not happen overnight nor will they happen with every client. Ultimate clients are developed and nurtured over time with patience. When targeting clients that you hope to become ultimate clients consider and act on the following:

• Develop the relationship and map where you want it to go over time

• Understand their business, not just the project you are working on

• Educate yourself about their industry

• Act on the information they provide

• Show appreciation regularly

• Be involved in their business and warn them of issues before they become problems

• Cross-sell only where appropriate

By delivering on your promises and creating a great client experience, you will not only build a better client rela-tionship, but will also make it much easier for your client to refer others to you. As your roster of ultimate clients grows, you will find that more work finds you first. •Mark Hunter is Director of Marketing and Communications at Dillon Consulting Limited.

HOW GREAT CLIENT EXPERIENCE CREATES ULTIMATE CLIENTS

Volume 11 2016 17

Consulting Engineers of Ontario is now accepting entries for the 2017 Ontario Consulting Engineering Awards. The OCEA recognizes

excellence across a broad range of engineering accomplishments and outstanding professional dedication.

Whether your company is small or large, we encourage all member firms to participate. There are award categories for firms of all sizes and

different disciplines of engineering.

Award recipients and nominated projects will be featured in the Plus Delta Magazine – Accolades Edition and other engineering

industry and general interest media.

Notice of Intent to Submit: Friday November 4, 2016

Complete Submission Package: Monday December 5, 2016

GO TO WWW.CEO.ON.CA TO LEARN MORE.

HOW GREAT CLIENT EXPERIENCE CREATES ULTIMATE CLIENTS

2017 OCEACall for Entries Now Open

18 PLUS DELTA

10A n engineering firm’s survival in the market-

place may depend as much on effective risk management as anything else. A pivotal ingredient in managing risk is having the

right professional services contract in place. A strongly worded, legally enforceable, written contract can spell the difference between a great project with a client who’s likely to work with them again and a project they wish they had never agreed to take on.

Here are 10 “must-have” clauses every contract should have.

1. Billing and paymentContract language should address issues such as when payment is due, the penalties for late payment (e.g., interest, collection costs) and state the firm’s rights in the event of non-payment (e.g., suspension or termina-tion of services). Firms should not accept language

By Wilma Schreuders

that would permit their client to withhold payment of disputed invoices.

2. Certifications, guarantees and warrantiesThe contract should never promise to assure the total accuracy of something or confirm absolute compli-ance with a standard. Firms should not accept other terms that, in effect, guarantee, such as “all,” “every,” “insure,” “ensure,” “assure,” “state” or “declare.” Watch out for certifications, warranties and guarantees as they may also be found in the fine print of a client’s purchase orders.

3. Consequential damagesThe contract should include a Waiver for Consequen-tial Damages, those indirect expenses (e.g., loss of profit) that are remotely connected to a design profes-sional’s failure. This should include a provision that makes it clear that neither the firm nor their client will

TEN CLAUSES TO INCLUDE IN YOUR CONTRACT

CONTRACT LANGUAGE

Volume 11 2016 19

www.firwin.com | email: firwin@firwin.com | Phone: 1-888-498-7140

Specifying insulation for back-up power systems and process piping? Think Firwin Corp.Manufacturers of Removable Insulation Blankets for over 30 years. ISO 9001 : 2008 and UL 2200 Certified.

By Wilma Schreuders

be held responsible for consequential damages because of any alleged failures by either party.

Firms should not accept any language in a client-drafted contract that would make them responsible for consequential damages.

4. Jobsite safetyThe contract should include a Jobsite Safety provision that clearly states that the responsibility for site safety and construction means and methods remains with the contractor, not the design professional. Remember that the actions of the firm during the project could change the terms of the contract.

5. Limitation of Liability (LOL)Include in the contract a Limitation of Liability clause, an agreement between the firm and the client to estab-lish the maximum liability the firm will be respon-sible for if there is a claim brought by the client on the project.

Be sure that the limit selected is meaningful (e.g., an amount tied to the project fees) and takes into account potential damages on a project.

6. MediationMediation is an approach to dispute resolution, typically voluntary, that helps disputing parties reach agreement among themselves, thus maintaining or reopening their communications. The contract should include a clause that calls for mediation as the first step in settling disputes.

7. Scope of servicesThe scope of services is a detailed description of those services that the firm will provide to the client, those they can provide for an additional fee and those they will not provide. It should be as precise and complete as possible. It should leave no ambiguity or question

TEN CLAUSES TO INCLUDE IN YOUR CONTRACT

as to whether or not some duty or deliverable item is included within the firm’s basic fee. Detailed checklists of all potential services can help the firm avoid over-looking scope items.

8. Standard of careThe contract should include a clause that affirmatively defines the standard of care to which the firm will perform. The standard of care for design professionals requires only that they perform their services with the degree of skill and care ordinarily exercised by other members of their profession under similar circum-stances, at the same time and in the same or a similar locale. Nowhere in the Standard of Care doctrine or definition is there any mention of “perfection.”

9. TerminationThe contract should include a termination clause that defines the circumstances (e.g., nonpayment of fees) under which either party may end its legal relationship and, depending on who initiates the action, specify the rights that each party has when the termination occurs. The firm should not accept language that permits only the client to terminate or that transfers the ownership of documents.

10. Third-party beneficiariesThe contract should include a provision that addresses the issue of third-party claims. If the firm’s negligence damages others who reasonably and foreseeably could have been damaged, they may be liable to them. In most jurisdictions, the third-party would not need a contract with the firm in order to file a claim and win. As with all contract issues, however, firms should consult with their Legal Counsel. •Wilma Schreuders is Vice President of Design Professional Group at XL Catlin. Wilma can be contacted at Wilma.Schreuders@xlcatlin.com

20 PLUS DELTA

T he most common reason people give for not volunteering is a lack of time. But as Mike Tulloch, Senior Corporate Director of Tulloch Engineering, discovered, volunteering can

actually save time.

As a board director of CEO from 2013-2016 and a member of CEO’s Audit and Finance Committee during 2014-2016, Tulloch acquired indispensable skills that served his company well. He says the information he gleaned from networking with other industry leaders on a regular basis was invaluable.

Plus Delta recently sat down with Tulloch, who is now semi-retired, to have a chat about the benefits of volunteering with CEO and what he learned from his experience.

Q. Why did you decide to volunteer at CEO?Tulloch: Our company, Tulloch Engineering, got heavily involved with provincial government work about 20 years ago. I became a member of CEO because I saw it was a very positive advocate for the consulting engin-eering industry. As I came to value what they did for us, I thought it made sense that I should get involved. CEO was so good to our company that I wanted to be an active part of what they were doing.

Q. What was the most valuable aspect of your partici-pation and why? Tulloch: What’s become the most meaningful to me is the interaction with the other consulting engineers who sit on the board. We can relate to each other, including each other’s issues and stresses, and over the years we’ve developed lasting friendships. I’ve been able to collab-orate with 20 professionals I wouldn’t otherwise have known, which has been great.

VOLUNTEER SPOTLIGHTMY CEO EXPERIENCE – MIKE TULLOCH

VOLUNTEER SPOTLIGHT

By Holli Moncrieff

WHEN YOU REACH INTO ORGANIZATIONS LIKE THIS, YOU’RE DEALING WITH OTHER LEADERS, OTHER STRONG PEOPLE, AND IT’S CERTAINLY BEEN GOOD TO LEARN FROM THEM—THEIR MANAGEMENT STYLE, HOW THEIR LEADERSHIP MEETS GOALS.

Volume 11 2016 21

oacett.org

Bene�ts. Compensation. Job Satisfaction. How does your company measure up?Find out how your compensation compares to the industry average with OACETT’s 2016 Salary Survey, the most reliable source of salary and bene�t data for planning and hiring in the engineering technology �eld.

View salary levels by region, discipline, �eld and certi�cation level.

Pre-order your copy today!Email esinkins@oacett.org

Ontario Association of Certi�ed Engineering Technicians and Technologists

Q. Describe a skill or experience you gained or improved on during your time volunteering at CEO.Tulloch: Volunteering with CEO has opened my eyes as far as how to achieve better cooperation from government agen-cies. I have a much better understanding of government policies and why the agencies do what they do. When you reach into organizations like this, you’re dealing with other leaders, other strong people, and it’s certainly been good to learn from them—their management style, how their leader-ship meets goals.

Q. Please tell us about a specific success that you achieved during your involve-ment with CEO and how it came about. Tulloch: For the last two years I’ve been involved with the strategic planning sessions, working extensively with the Finance and Audit Committee to get a four-year build horizon in place. I’ve learned how to ensure we can achieve all the goals in our strategic plan—it takes a lot of meetings. It gave me some insight into the factors that influence a budget. Crunching numbers is the easy part.

Q. How has your involvement with CEO benefited you or your perspective about the association? Tulloch: I have a greater appreciation of what CEO goes through in the course of a year. They have to meet all the needs of their members, and then there’s the government side to deal with. Before volunteering with them, I felt we got good value for the money, but I didn’t realize all the work they did in exchange for that annual membership fee.

Q. Would you encourage others to volunteer at CEO? Why? Tulloch: I’ve already encouraged my staff to get involved. It’s been an enriching experience to get to know others in our industry and share some of the stresses and struggles that we deal with. It’s so worth it to have a greater understanding of our profession. I’ve enjoyed my time volunteering at CEO very much—not just for networking or climbing the corporate ladder, but on a personal level. •

22 PLUS DELTA

G ord Murray doesn’t mince words when he talks about what a section of Conlin Road in Oshawa that had a number of geometric, operational and safety deficiencies was like before it underwent

a four-lane urbanization and widening. “This was a bit of a … nightmare,” says Stantec’s manager of transportation in the GTA. He says the design of the roadway and the twists and turns in it were not acceptable, while adding the two-lane bridge that crossed the Oshawa Creek was probably built in the 1920s. As well, the health of the creek had degraded because of the proximity to the roadway as runoff from the road worked its way into the creek.

The need to correct these deficiencies led the city to engage Stantec to conduct a class environmental assessment, which it began in 2011. Stantec also completed the detailed design and contract documentation for the project. The project was tendered in April 2014 and construction was finished in June 2015.

PROJECT AT A CLOSER LOOK

PROJECT SPOTLIGHT

Two of the project’s key objectives were:

• To improve the safety and operational efficiency of Conlin Road West to accommodate greater traffic volumes due to anticipated growth in the area.

• To protect the habitat in the watercourse and in the natural environment in the area around the Oshawa Creek.

For the former objective, the four-lane realigned roadway needed bicycle lanes, energy-efficient LED lighting, as well as a four-lane bridge to replace the existing two-lane one that had no salvage value. “We also made sure we had sidewalks and multi-use pathways available, both along the road and the provision to allow people to walk under the road through the creek valley, as well under the bridge from one side to another,” says Murray.

The emphasis was not just on accommodating vehicle traffic, but active transportation as well, which was especially

By Richard WoodburyBUILT FOR SAFETY

Volume 11 2016 23

important given the educational institutions in the area. Prior to the work being completed, the area was not friendly to active trans-portation users as it had “almost no shoulders” and poor visibility. “Anybody walking along that road would definitely be taking their life in their hands back before it was improved,” says Murray.

Replacing the existing bridge necessitated using a construction staging scheme to allow construc-tion of the new bridge and removal of the old bridge and a pedestrian bridge to take place at the same time.

To protect the creek, the focus was not only preserving the state of the watercourse and natural environ-ment in the area, but enhancing it. It was determined that if there were to be significant improve-ment to the overall health of the watercourse and its habitat, it would need to be physically separated from the proposed roadway, and a new naturalized watercourse created.

Achieving this required realignment and naturalization of approximately 350 metres of the Oshawa Creek, as well as enhanced quality control measures for stormwater runoff from Conlin Road. These measures included oil grid separators to provide a secondary level of filtering.

Stantec put together an in-house team of specialists to design the naturalized channel and used aquatic and terrestrial biolo-gists, fluvial geomorphologists, water resources engineers, a landscape architect and an arborist. The design employed state-of-the-art, proven techniques and salvaged materials from the site when possible.

So, how do you relocate a creek? “In this case, there was a creek running along the road embankment, so in the past somebody had basically built the roadway along the creek and built it into the creek at the time. Essentially what we did is dig another channel about 15 to 20 metres away from the existing channel, basically relocated the creek that much further away from the road and then naturalized that channel in terms of putting meanders and bends and ripples and pools and all those sorts of things into it. Obviously, there’s a point where you need to connect into the old stream on both ends, so you build this new naturalized channel in dry conditions,” he says. Then, the old creek is connected with the new man-made one. From there, the old creek is filled in, making the new one the only creek.

The creek’s realignment and naturalization was a success. “The before and after picture was quite encouraging in terms of the health of the creek being substantially made better by the improvements,” says Murray.

The project was a smooth one and involved exceptional cooperation between Stantec, the City of Oshawa, the Central Lake Ontario Conservation Authority, as well as property owners, other agencies and stakeholders, and utilities. As part of this cooperation, acquiring permits and approvals in a timely fashion was a must and didn’t serve as a roadblock. “In many cases, you’ll find the regulatory agencies, the engineer and the city or the municipality may find themselves with different objectives in terms of what they want to see. In this case … we all worked very well together in terms of moving forward with the project objectives. We all agreed that, ‘Yes, we want to make this road safer and make it a better road,’ but we also wanted to take advantage of the opportunity to really improve the creek and the environment,” says Murray.

He says that in road building projects, creating safe roads is more of a priority than improving the environment. Thank-fully, this project allowed for the best of both worlds. “We were able to do all of that here,” says Murray. •

24 PLUS DELTA

O ne of the most significant decisions business owners will make is what should happen with the business

upon their retirement. Here are some of the considerations that entrepreneurs should think about when beginning to map out the future succession of their firms.

Identifying Future Leaders

Many firm owners envision their busi-ness as their legacy to be passed down

PASSING THE TORCH: Selected Topics in Business Succession Planning

to their children. However, certain ques-tions must be asked when considering the transition of the business to family members. For instance, will your child have the right management experience and engineering background necessary to step into the role of firm owner? How interested is your child in taking over your role? Further complicating matters is if more than one child is interested in and capable of carrying on the business. Having candid conversations early on with your family about your succession plan will help to minimize any potential

SME FEATURE

By Sabrina A. Nardone

conflict that may result while still doing what is best for the business.

Selling your firm to a partner or key employee is another appealing option given that such person will already be familiar with the business and is likely invested in its future success. It may also make for a smoother transition since there will be a degree of continuity in business operations. However, potential candidates must be closely evaluated to determine whether they have the right engineering expertise and leadership

Volume 11 2016 25

wspgroup.ca | worldofpossibilities.ca

B U IL D IN G S > T R A N S P O R TAT I O N > E N V IR O N M E N T > M U N IC IPA L IN F R A S T R U C T U R E > M IN IN G | E N E R G Y | IN D U S T R I A L

ENGINEERING A WORLD OF POSSIBILITIES

PASSING THE TORCH: Selected Topics in Business Succession Planning

skills necessary to carry on the business. Further, if you are the main point-person for clients, the transition must include integrating your successor into key client relationships early on.

If selling to a third party, you will need to evaluate whether the firm will be sale-able on the open market and whether it is the type of business in which a third party could be successfully transitioned. You will also need to consider how employees and clients will take to new third-party management stepping into your shoes to run the business.

Success through Succession - Practical ConsiderationsRegardless of whether the business will remain in the family, obtaining a busi-ness valuation will be an important part of your succession plan. To this end, a valuator should be retained to analyze the company in order to determine its fair market value.

You will also want to develop a contin-gency plan in case of your incapacitation or death prior to the implementation of the succession plan. This plan should ensure the continued survival of the business, but also that your spouse and/or children will be sufficiently provided for.

It is important to note that every succes-sion plan will have significant legal, accounting and tax considerations that must be taken into account. Therefore, it is essential that you obtain the assist-ance of a trusted team of professionals to ensure your succession plan has been evaluated from all angles.

Exit Strategy - Planning for the End GameIt is also essential to develop a timeline for your exit that suits your retire-ment plans and sets the business up for success post-transition. The timeline should contemplate a gradual decrease of your involvement in the business. However, remaining involved in the business for a period of time post-succes-sion as an advisor or in some other capacity may contribute significantly to the successful integration of the new management, and therefore should be factored into the timeline if necessary.

The maintenance of your standard of living post-succession is also of utmost importance. For instance, if you are reliant on your business as your main source of retirement income, you and your financial advisors should devise a plan that protects your finances upon your exit.

Finally, it is also worth turning your mind to how you will fill your time once the business has been trans-ferred. Giving some thought to what your day-to-day activities will be like once you have left the business will help ensure your long-term happiness and sense of fulfillment.

Each business comes with its own unique set of circumstances, and there is no one-size-fits-all approach to devel-oping a succession plan. However, beginning to think early on about the future of your business will help you devise a succession plan that makes the most sense for you, your family and the continued growth and success of your business. •Sabrina A. Nardone is an Associate with Fogler, Rubinoff LLP and a member of the Business Law Group. Her practice focuses on mergers and acquisitions, financings and commercial law matters. Sabrina can be contacted at snardone@foglers.com or 416.840.0661

IT IS IMPORTANT TO NOTE THAT EVERY SUCCESSION PLAN WILL HAVE SIGNIFICANT LEGAL, ACCOUNTING AND TAX CONSIDERATIONS THAT MUST BE TAKEN INTO ACCOUNT.

26 PLUS DELTA

PLUSDELTAProfessional Services Directory

Arup Canada Inc. ......................................... Inside Front Cover www.arup.com

Concrete Floor Contractors Association ...... Inside Front Cover www.concretefloors.ca

Firwin Corporation .................................................................. 19 www.firwin.com

Manulife Financial ..........................................Inside Back Cover www.manulife.com/ceoDI

MMM Group ........................................................................... 25 www.mmm.com

OACETT ................................................................................. 21 www.oacett.org

Ontario General Contractor Association (OGCA) .................................................................... Outside Back cover www.ogca.ca

Ontario Society of Professional Engineers ................................ 7 www.ospe.on.ca

R.J. Burnside & Associates Limited. ....................................... 11 www.rjburnside.com

University of Windsor, Ed Lumley Centre for Engineering Innovation ...................................................... 15 www.uwindsor.ca

1 Human Resources and Skills Development Canada: 2006 Survey of Self-Employed Individuals: Perceptions of Benefit Coverage, May 2006. 2 Canadians at Financial Risk: 2013 Canadian Life Insurance Ownership Study Highlights, LIMRA, 2013.3 Chaplin R, Earl L. Household spending on health care. Health Reports 2000; 12(1): 57-65. 4 Statistics Canada: Trends in out-of-pocket health care expenditures in Canada, by household income, 1997 to 2009 (April 2014).5 Canada Life and Health Insurance Association, A guide to disability insurance, November 2012. 6 Get Sick, Get Out: The Medical Causes of Home Mortgage Foreclosures. Health Matrix: Journal of Law-Medicine, Vol. 18, No. 65, 2008.7 Disability Insurance: Where Will the Money Come From If You’re Disabled? Canadian Life and Health Insurance Association, January 2004.Underwritten by The Manufacturers Life Insurance Company. Manulife and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license. ©2015 The Manufacturers Life Insurance Company (Manulife). All rights reserved. Manulife, PO Box 4213, Stn A, Toronto, ON M5W 5M3.

They’re more affordable than you think

The Self-EmploymentChallenge

Being your own boss has its perks. But without an employer’s group benefits, self-employment also means fending for yourself in case of illness or disability.

ailing the self-employed?what’sHow health and disability insurance can help

Engineers Canada-Sponsored Insurance Plans

Exclusive to professional engineering, geoscience and technology association members and their families, at low rates not available to the general public.

Over two-thirds of surveyed self-employed individuals are concerned about their lack of access to medical coverage and insurance.1

8 in 10 Canadians are concerned about the government’s ability to fund health care, the cost of longterm care, and having enough money if they become disabled or seriously ill.2

Why health insurance?Canadian families are spending an increasing share of their household income on health care.3

Households in the 3 top income quintiles had an average:4

• 39% increase in dental spending• 24% increase in prescription drug spending

Why disability insurance?• 1 in 3 people will be disabled for 90 days or more at

least once before they reach age 65.5

• 49% of bankruptcies and mortgage foreclosures are due to disability.6

• A disability of over 90 days is likely to last three years or more for a 35-year-old man or woman, and four years or more for a 45-year-old man or woman.7

Health & Dental Insurance covers both routine and unexpected medical expenses, such as:• Prescription drugs• Dental care• Eye exams and eyeglasses

Disability Income Replacement Insurance covers 6 types of disabilities and includes the following at no extra cost:• Compassionate care benefit• Automatic Cost of Living Adjustments• Waiver of premium

The Manufacturers Life Insurance Company

The Role of Insurance

Supplementary health and disability income insurance plans help protect against financial loss due to illnesses or accidents.

manulife.com/ceoDI | 1-877-598-2273

PLUSDELTA

C

M

Y

CM

MY

CY

CMY

K

Consulting Engineers of Ontario Ad PRINT Bleed.pdf 1 7/19/2016 9:01:02 AM