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AUGUST 2011 Volume 12 No. 8 ONTARIO, CANADA $4.95
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Amalgamation creates new-style $40M secondary school with community consultation and thoughtful co-ordination Shovel-ready project at Sault College links public health and education
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We might be in the middle of summer and getting closer to the date of Ontarios provincial election, but the election campaign seems to be resisting all efforts to heat up. Unfortunately, its the summer, so nobodys addressing much of anything its been really quiet, said Clive Thurston, president of the Ontario General Contractors Association (OGCA), when asked whether the construction industrys concerns have been sufficiently addressed in the election campaign so far. David Zurawel, vice-president, policy and government relations at the Council of Ontario Construction Associations (COCA), agreed. We still havent really seen a lot details from any of the parties if you want to take a look at industry concerns, he said. Both expect that will change in September, when the campaign swings into high gear for its final four weeks. Theyre really going to count on people not paying attention to this thing until after Labour Day everyones back to work, kids are back to school, so thats when they will wrap it up, said Zurawel. The Liberals made their long-term infrastructure plan public in late June, but still have not released their platform though the plan makes for a very good plank on which they can start their campaign, said Thurston. Zurawel cautioned that Dalton McGuintys party will still have to take and get their heads around how theyre going to, in a meaningful way, continue to develop the Ontario economy, while at the
same time dealing with accumulated costs of debt and impact on the deficit. Tim Hudaks Progressive Conservative Party, on the other hand, has been talking about bringing costs under control, but theyre not going to be able to get away from the long term infrastructure plan, said Zurawel. Ontario has a big piece of the national problem of the crumbling core infrastructure. You can only facilitate the healthy growth of a prosperous and innovative economy if youve got good bones to the system, and thats healthy infrastructure, and we dont have thatThey will have to commit to something like that, he explained. The conservatives released their set of promises weeks ago, in a changebook in late May. (It) has very strong recommendations
that we dont disagree with there needs to be more accountability, less taxes, less red tape all that stuff that weve done before. Some good things there that can be built on, said Thurston. The NDP might also benefit from their federal counterparts big victory in last Mays federal election, and shape up to be a previously-unexpected threat, but both Thurston and Zurawel pointed to the spending that party proposes. The NDP platform again assumes that theres an unending pot of money somewhere that some mystical rich class is going to pay for, Thurston said. But we might have to work with them. Theres a real possibility of a minority government. We could see something like what happened at the federal level. Theyve had a real boosted relevance coming out of the federal election, but
were still not sure what thats going to mean. There are some commitments to things like taxes, like HST on hydro on home heating and fuel and those things, that are going to save families money out of their pocket, but if they do that, those proposals represent a sizeable chunk of revenue out of the government coffers, said Zurawel. For the OGCA, infrastructure is a key issue in this election, and the organization is asking questions and hopes to see more definitive information in the next few months. We do want to see a reduction in the red tape and problems we have getting things done, permits, that sort of thing, some regulatory reform is high on our list, Thurston noted. Zurawel said that for the construction industry, infrastructure and the economy are important issues, but that what the construction industry needs is the same thing that business in general needs - sound economic policies. You can only have investment when you have good infrastructure, but then that infrastructure will bring in more business and that business will need things built, and thats what we do, so its a bit of a circular argument, but thats really what it is. So it really comes down to how healthy is the economy and what are these parties going to do to ensure its continued growth and health, he explained. At this point, the election is up for grabs, and theres going to be major change, said Thurston. But at the moment the platforms are broad we need more detail and well see how that unfolds. We imagine that there will be more detail and more specifics as we get closer to the election.
Co-ordinators of a program that helps veterans find new careers in the construction industry hope the initiative will be up and running by the end of the year. The federal budget tabled in June announced that it would support the Helmets to Hardhats program, though it didnt outline the amount that will be spent. Were just trying now to establish the start-up funding, build the website for the registration process and get the stakeholders and government, industry, together to talk about levels of committees, says Joe Maloney, chair of the Canadian executive board of the Canadian Building Trades and spokesperson for the program. Helmets to Hardhats gives veterans and reservists who are leaving the Canadian Forces a chance to re-train and find work in the construction industry. Its primarily a web-based system where the veteran or reservist can register online from basically anywhere in the country, put their particulars there, and just say heres my name, heres my rank, etc, and Id like to become a welder in Vancouver or Id like to become an electrician in Ottawa, Maloney explains. And then they register that in the system and then we as an industry would contact that person and guide them to the appropriate place to go in the city they want to start a trade in. If they have prior construction experience, they could start their training as a first, second, or third year apprentice, or a journeyperson. The
program extends beyond hands-ontools work, and includes positions in areas like administration, management and engineering. So an officer or someone whos leaving the military after 20 plus years, and theyre only in their mid 40s, theres lots of opportunities in management and other positions that they can get involved in, notes Maloney. He says one of the reasons veterans and the construction industry are a good fit is that serving in the armed forces means doing construction-related activity, whether it be digging ditches, dropping tanks from helicopters, or using electronics. You know when you get a veteran, normally, youre getting person with a grade 12 education, a person that is drug-free and a person who can work in a team environment and take orders, he says. The program was first established in the U.S. in 2003, using congressional funding. Its a magnificent program. Its still in operation there, and the industry embraced it, the military embraced it, and many of the trades there use the program on a regular basis, Maloney says. He is currently working on the Canadian program, but Maloney also led the American initiative. When I came back to Canada, we approached the government here a lot of education had to go on about why such a program could work. While Helmets to Hardhats is a union initiative, the program is also open to non-union workplaces, as long as they fulfill the criteria. Any contractor must prove that
they participate in a registered apprenticeship program, prove that they have annual tracking of the people in that apprenticeship program, and as well that they have industry-standard health, pension benefits, and that theyre paying industry wages, he says. Much of the program will be run by volunteers; though a national director, most likely someone with military experience, will be hired, and that person may have access to a small staff. They will be the only ones to get paid. All the 14 building trades and their management counterparts will establish provincial and regional Helmets to Hardhats committees,Maloney said. They will meet on a regular basis and decide for that particular craft, and that particular management structure in that area, how they will format the program to work for them in that area. And we will have a national oversight committee, just to monitor the experience and activity in the program. Maloney says that the construction industry has been very supportive of the program so far. I have not heard anybody in the industry, union and non-union, speak against this program, he notes. Maloney says that, given the contributions the veterans have made in their careers, setting up the program is simply with the right thing to do. We feel, as patriotic Canadians, that we should be giving our veterans another option when they decide they want to leave the military, he explains.
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and at the same time host major tournaments that will bring in thousands of visitors every year. The total project cost for the Benson Centre is $32,490,083. The governments of Canada and Ontario each invested $9,221,465 towards the project, and the City of Cornwall invested $14,047,153. The city portion includes the efforts of the 3 Plus 1 Project 2010 fundraising committee, which raised $2.6 million. Federal and provincial contributions come from the Building Canada Fund, which represents a joint federal-provincial investment of more than $6 billion to help communities across the province address key infrastructure needs. Construction Industry technology leaders merge to deliver online services for the construction industry Responding to the rapid growth in the use of online technologies within the construction industry, Barryhund Administrators of Sacramento, California and Infinite Source Systems of Vancouver, British Columbia have announced the merger of their U.S. operations. Their combined market strength will allow them to quickly introduce their new technologies and services to the U.S. construction market. The unique new solutions being brought to the market through this merger will be the first to offer an integrated approach that provides the tools needed by all construction professionals to quickly and easily control and manage the elements of the bidding process that they are responsible for, said Barryund Administrators CEO Rex Klein. Barryhund Administrators and Infinite Source Systems online construction solutions have been used on over one million projects and they boast a combined user base of over 150,000. Infinite Source Systems CEO Dave Robertson said: We are excited about this new relationship with an industry leader like Barryhund. Our substantial expertise in the field and proven market leading technology offerings combine to meet the diverse needs of the increasing numbers of construction professionals who are quickly transitioning to the use of online solutions.
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Construction industry insurance and bonding challenges highlight need for solid relationships with qualified brokers
Exclusions and risk transfer to contractors require cautious and quick response
STAFF WRITER Special to The Ontario Construction Report
With challenging economic conditions, intense competition, regulatory requirements and risk transfer from owners to contractors, Ontarios construction insurance and bonding marketplace has become increasingly complex and risky in the past year. Brokers and surety underwriters both say your best defence against unpleasant surprises either skyrocketing premiums or (more seriously) denied claims is your relationship with your insurance broker; and that broker needs to have solid experience and understanding of specialized construction industry requirements. Municipalities and (commercial) customers are getting more sophisticated about risk management, says Aaron Nantais, managing partner at Jones DesLauriers Insurance Management Inc. and responsible for the firms construction division. He says he recognizes the ever-changing insurance challenges that builders and contractors
deal with today including reduced coverage, unreasonable warranties and ever-increasing rates. There is no standard anymore everything is more fluid than it was 10 years ago, even five, said Nantais. From standard general liability to in-house surety bonding, working with an experienced broker who has strong relationships with all the major insurance and surety markets in Canada is more important than ever. We provide builders and contractors with well planned, cost effective strategies for insurance and risk management. These issues are especially important for environmental liability. The challenge is that the real risk and liability for different projects can be quite varied as can the premiums so a contractor who does not check in advance before submitting the low bid on a project could be caught between a rock and a hard place with an unexpected expense if he is successful. A small four-line environmental risk paragraph could be in the $20,000 (premium) range or higher, said Matt
Croswell, account executive at Jones DesLauriers. Often different projects will have different requirements and of course each file needs to be reviewed case-by-case. We coach our clients to give us the bid documents so we can review them way ahead of time and avoid costly surprises. Croswell recommends bringing the insurance broker into the picture at least three weeks ahead of time. Warren Griffiths, vice-president at FCA Insurance Brokers, says contractors also need to be wary of hidden limitations in commercial general liability policies. In the past seven or eight years, underwriters have been putting on more exclusions or warranties, and the warranty puts the onus on a contractor that they have to do certain things and if they dont, the most onerous warranties void the coverage. These hidden warranties can be especially painful for contractors and sub trades already experiencing truly high premiums. They can be a problem, for example, with roofing or mechanical contractors sup-
plying heat or flame, Griffths said. They often cover safety practices which should be the norm in the industry, but that doesnt stop someone making a mistake one day; when one of their employees leaves you vulnerable without insurance coverage, when you need it the most. For example, the warranty may require you always have a fire extinguisher readily available, but, Griffiths says, say one of your employees, normally working on commercial projects, is called out to make a small residential repair, and he leaves the fire extinguisher behind. The house burns down and, suddenly, because of a single lapse, the contractor finds he is completely unprotected by his insurance. Some warranties are one sided and onerous and it is the role of the insurance broker to point these problems out to contractors. In some cases, it makes a lot of sense to pay additional for riders and supplementary coverage to reduce the risk and
stress of disaster. Again, different underwriters have different rules, so specialized broker knowledge of the industry, clients and underwriters is vital. Brokers who specialize in the construction industry say it is always wisest to work with someone who is truly familiar with the industry, its nuances and constant changes and challenges. But this knowledge needs to be combined with personal relationships because often, underwriting decisions and premiums are influenced by the confidence that the insurer and client have in each other and the broker relationship provides the conduit for that relationship. We are a niche/boutique brokerage (and) are able to act as part of the contractors management team and assist them to build their business, says Enzo Ferrari with StoneRidge Insurance Brokers in Woodbridge, which primarily serves the GTA area. We spend a lot of time and efforts on our clients, he says. We are not a production shop. This means that Ferrari can watch for warning signs, unintended risk, and also guide the contractor to the surety markets. For bonding, the rule of working times 10 for contractors, and if they are subbing out work, twenty times working capital, if they are not buying lots of equipment or manpower, he said. Like other brokers, Ferrari says he finds most of his business through word-of-mouth. We like to fly under the radar, working with (new) accounts that might require a million dollar (surety) facility today, but which can grow to five or 15 million as their business succeeds. All insurance brokers say they do bonding, says Ferrari. I cook dinner for my kids does that make me a chef? What most contractors dont understand or have not spent enough time on is aligning themselves with a brokers such as myself that has spent years nurturing relationships with the surety market. Warren Griffiths at FCA says specialized knowledge and relationships go beyond the overall construction industry, and reach to all of the subindustries (and trades) within construction. We understand the industry very well and understand how the clients do their business, he said. A roofing client doesnt have to tell me about the various ways a roof goes on. This means he and other FCA specialists can focus on the specific differences and issues of each business, without wasting time while ensuring adequate coverage. Aaron Nantais at Jones DesLauriers says when it comes to specialized coverage for specific projects, the broker needs to work with the client and owner to remove unnecessary conditions and clauses from the contract documentation conditions that can be both onerous and costly. Time and time again, we see insurance requirements in a bid that far exceed the scope of the project and can be removed when a case can be made, said Nantais.
Ontario Construction Report asked The Guarantee Company of North Americas (GCNA) Paul Hollingworth, vice president contract surety, Central and Atlantic region, two key questions. Here are his answers: What would you say is the most vital issue or concern as it relates to the insurance and bonding industry in Ontario? The surety bonding business is dependent on the successes and challenges of the construction business, so our interests are aligned. Currently, the most vital concern for our business is the drop in demand for construction services by government owners, which has not yet been replaced by demand in the private sector. Stimulus spending by federal, provincial and municipal governments was concentrated from late 2009 to late 2010, but the type of construction spending that is typically bonded has declined by approximately 20 per cent since then.
tractors competing for the same bids as stable qualified contractors, therefore driving down the gross profit margins that contractors need to cover their expenses. How is your business/practice helpful? Describe, specifically, anything you think to be important. Becoming the largest writer of construction bonds stems from our qualified, responsive staff that manage our relationships from seven surety branch offices across Canada. Our business model is also based on stable, predictable underwriting. Foreign-based bonding companies might be more inclined to forego proven underwriting standards in their attempts to write business quickly, and then close up shop and retreat to their home bases when default and losses ensue. A Canadian company, the Guarantees focus is meeting the needs of our long-standing contractor clients and their brokers, while actively looking for new business opportunities among contractors that meet our high standards.
Obviously, this impacts sureties revenues by the same percentage, but it also has the potential to increase sureties losses due to contractors challenge to secure enough revenue to cover their operating costs, and more competitive bidding that is, for thinner gross profits. Secondly, some bond companies efforts to maintain revenues during soft cycles of comparatively less construction activity sometimes leads to lower underwriting standards. This can certainly result in unqualified, poorly capitalized con-
Amalgamation creates new-style $40M secondary school with community consultation and thoughtful co-ordination
HEATHER SEFTEL-KIRK The Ontario Construction Report Special Feature
Bondfield Construction, ZAS Architects + Interiors and MGP Architects Engineer Inc. teamed up to give Sault Ste. Marie a new $40 million Superior Heights Collegiate & Vocational School and in the process, created a new community education environment for upcoming generations. The project amalgamated two existing schools Sir James Dunn and Bawating both in need of repair and at the end of their life cycles. Choosing the site of Bawating for the new school, based on its redevelopment potential, the development of the new school incorporated many elements to facilitate both the schools targeted programming and Ministry of Education curriculum requirements. Paul Stevens, senior principal with ZAS Architects + Interiors said: We designed the school to include an emphasis on healthy active living, trade technology, international language studies and other unique programs offered at the school. The three major community spaces gymnasium, cafeteria and library are all centrally located and create the hub for the school. Where many schools have gymnasiums tucked away at one end of another, here the quadruple gym is central and highly visible with plenty of glass to reflect the philosophy of health and active living. The trade and technical spaces are clustered and interlinked for ease of movement, Stevens said. On the second floor we combined three classes into one for a tiered configuration. The space mimics a large lecture hall and will provide an experience with the kind of learning environment the students will see as they move ahead in their education. The school has been designed with environmental quality and enegy efficiency in mind. While working on the school project, ZAS authored a Green Schools Resource Guide for the Ministry, identifying best practice design for green schools in Ontario. Incorporating many of those elements into this project resulted in a 30 per cent reduction in energy and water consumption. This project needed a cost effective and sensible approach so we focused on things like natural light and sensors, good thermal control in the rooms and using local materials whenever we
could, said Stevens. With the history of the area, that meant using a lot of steel. It all comes down to understanding the technology and utilizing it the best ways we could. At the end of the day the operating costs for schools are huge and that becomes the legacy youre left with unless you are proactive in addressing it. As the old Bawating School remained open durng construction, the new school occupies what had been the old field and parking area. Once the old school site is demolished, new open areas will be available. The new site will have a real campus feel it didnt before. The school position creates an edge to the campus and then the track, ball diamond, sports fields, basketball courts and play areas are all linked by pedestrian walkways. The 180,000 sq. ft. facility is designed for 1,200 students but has provisions for future expansion. Bondfield Construction vice-president John Aquino said construction on the site was con-
Superior Heights
Continued from page OCRB1
stricted because of student traffic and was further complicated by poor soil conditions. The site required a compact design to reduce the footprint. To accommodate the soil con-
ditions the school was then constructed on steel piles. At the end of the day this compact design would prove both effective, and cost efficient. The contractor, architects and school district also worked to resolve the challenge of amalgamating two unique school cultures into one. The Algoma District School Board was very concerned and astute in bringing these two communities together and there was a clear mandate from the beginning of listening to and respecting all of the parties. A lot of effort went into workshops, open houses and public meetings. Once the Board made the decision to move ahead with the new school there was plenty of consultation with the staff, the students and the parent associations. Henry Pietrzakowski, principal with MGP Architects Engineer Inc., the projects local architectural partner, said the project followed a tight, aggressive schedule, carried off successfully to the credit of Bondfield. It was a $40 million project delivered on time, on budget and with which the client is extremely happy. It took a lot of teamwork and dedication to pull this off and, thanks to Bondfield, we have. Though ideally the project would have involved more local trades, Pietrzakowski says in this case, an abundance of construction in the Sault required bringing in several trades from southern Ontario. A lot of the guys I spoke with had never worked here before, really liked the proximity of everything and the personality of the area and will likely be back working with us on future projects. Stevens says this type of consolidation, of creating new generations of education, makes sense for smaller communities where older schools are prohibitively expensive to repair and declining enrolment makes some of them inefficient to operate. This represents a new vision for the building of future schools. The school board, design team and contractors did a remarkable job of working together and getting it done so quickly and so well.
Pietrzakowski is proud of their accomplishment and excited for people to see it. Its an impressive school and the fact that it is here is an added bonus. People see it from the outside and think its great but when you see inside, feel the flow and energy, you really appreciate what has been created. The school is set for occupancy this fall. ZAS Architects + Interiors is a multi-disciplinary and multi-cultural team of professionals providing fully integrated and comprehensive services for projects of all scales and various levels of complexity. For more information, visit http://zasa.com. MGP Architects Engineer Incs design philosophy is based on participatory planning, where everyones ideas and concerns are listened to creating a vested interest in the project, and ultimately a tangible link between the users of the spaces and the surrounding community. For more information, visit http://www.mgp-arch-eng.ca/ For more than 37 years Bondfield Construction has remained a leader in the construction industry. For more information, visit http://www.bondfield.com.
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Algoma Public Health Building: Shovel-ready project at Sault College links public health and education
HEATHER SEFTEL-KIRK The Ontario Construction Report Special Feature
While there are many variables for what motivates construction and design, in the case of the new Algoma Public Health Building in Sault Ste. Marie, at least part of that driving force was the desire to explore the potential synergies between public health and an educational institution. Completed this summer, the new building is co-located alongside the Sault College campus and brings together units of Algoma Public Health (APH) previously located in six disparate locations. E.P.O.H. Inc., an architectural and engineering firm based in northern Ontario, acted as the projects lead architects, mechanical and electrical engineers. E.P.O.H. specialize in educational, recreational, research laboratories and healthcare architecture and have delivered projects in Asia, South America, the U.S. and Canada. E.P.O.H. principal architect Franco Pastore, principal in charge for the new Algoma public health facility, says despite all of the high goals and challenges, this project was surprisingly and wonderfully shovel ready. This was an important project that was extremely necessary for the community. For that reason the board of APH decided to invest in the architectural planning prior to securing capital funds for its construction. It was designed, ready and waiting to be implemented. The only challenge left was where to find the funding. The solution turned out to be infrastructure stimulus funding through the federal and provincial governments, which was available for construction-ready infrastructure projects and provided the financial kick to get this project underway. Many of the original challenges in designing the new facility related to its location. Since the new building is set alongside Sault College, it had to be integrated in a manner that was congruent with the much larger campus of buildings, Pastore said. This strategy was important both to APH and Sault College as it embodied the spirit of the cooperation that brought the two organizations together. The problem however, was, the college is also going through a state of redevelopment and renewal with the aspiration of reinvigorating itself within the eyes of the community.
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Congratulations to the whole team working on the new Algoma Public Health building & E.P.O.H.
EPOH has also worked on the design of Sault Colleges new academic wing. A design standard is slowly emerging that will transform the look of the campus into one coherent vocabulary, Pastore said. The APH project helped set the stage for this new materiality. It is our hope that this palette of materials be applied to existing and future campus buildings. Our architectural vision is to see the entire campus eventually synchronize with this palette. At an urban level, the facilitys placement posed some special challenges.The street that were on is not a major thoroughfare and, in fact, is next to a residential neighbourhood, Pastore said. We designed a rounded structure, in floor plan, to avoid those hard edges and faces that potentially intimidate the neighbouring houses on that street. Furthermore, the circular plan and resulting curved faade leads one to the main entrance which faces south, away from the nearest major vehicular/pedestrian thoroughfare. The curving faade also accommodates the suns moving path from morning to late afternoon to maximize available natural light.
This building houses programs including family health, sexual health, mental health, parent and early child, environmental health, dental health, immunization and administrative services. By nature, this type of healthcare is not reactive, but is proactive through promotion and education. Co-location with Sault College will allow APH to explore new opportunities in how Public Health is delivered as well as to create synergies in areas such as infrastructure, information technology and facility maintenance. says Pastore. The design includes a Health Promotion Hall within the link connecting the college to APH. Furthermore four new classrooms have been built into the project to be shared with the college for programming related to public health and healthcare in general. This will enhance the Sault Colleges health science program. Pastore says that the degree of difficulty in designing a building is generally directly related to how heavily the building may be used by the people it serves. When youre designing something to accommodate a lot of people traffic, specific functions and processes, your approach to design must be more service focused, he said. You look at everything from the perspective of the client using the building because what you create must not only successfully accommodate their needs but should also enhance their experience.
Congratulations to the whole team working at The new Algoma Public Health building & E.P.O.H
www.redstar.on.ca
This resulted in a design that houses all of the patient-focused care activities, such as shared clinics, environmental health and conference rooms within the buildings ground floor, easily accessed by APH clients. Building security is also enhanced because public activities are separated from staff areas on the second and third floors. The APH facility has been designed to be adaptable and flexible for future conditions. As an example, this facility has the ability to transform itself into a disaster relief headquarters during or after major events. The building has the technology to become a war room because it has been designed with heightened level of infrastructure technology, such as analogue communications for redundancy, full video conferencing capabilities, remote I.T. rooms, increased power and data connection and management systems, 100 per cent emergency power and classrooms and meeting rooms with operable walls that can be combined into large halls to handle mass vaccinations and other events. The new APH building will be the first building in Sault Ste. Marie designed to LEED Gold standards and is in the process of receiving its final certification. Through LEED, the facility earned between 60 and 79 points in site development, water and energy efficiency, material selection, indoor environmental quality and design innovations. Some of these elements include the cistern used to collect rainwater for flushing toilets; higher use of natural daylight; outdoor roof terraces complete with passive landscape and vegetable gardens, building materials with higher durability; and outdoor landscaping with indigenous vegetation. The building also includes low VOC materials, occupancy sensors,in-floor radiant heating,increased R values in the exterior building envelope, daylight harvesting and high efficiency HVAC systems, Pastore said. E.P.O.H., under the direction of partner Cal Oswin, also served as the projects mechanical and electrical engineers. Despite EPOHs extensive history and experience in health care, Pastore says that each project is slightly different and presents its own set of challenges. This project was unique in terms of what drove it, he said. Certainly there was the desire to get all of Algoma Public Healths services into one location for better client service and to create a more seamless operation, but there was also a unique requirement to explore and capitalize on any opportunities available to both organizations with respect to integrating public health and education. For this project, that will be where the lessons are learned from our perspective. This is a new model that may set the example for future public health facility projects to come. Well be following this as things move along to see if the synergies evolve and how the design compliments that need, or what might be adapted for future projects to make it all work better.
Lou Schizas
Canadian, eh!
For Sponsorship opportunities and registration information: contact Nancy Chapman, RMCAO at 905-507-1122 or Email nchapman@rmcao.org
www.edac.ca
Audience
This conference will bring together community leaders, economic development professional and entrepreneurs from all across Canada to hear about innovative solutions to local challenges. Approximately 400 delegates will attend EDAC 2011 in Peterborough, Ontario.
How to Register
For more information about EDAC 11, please visit the EDAC web site at www.edac.ca You can also register on-line utilizing the following link http://www.edac.ca/html/shtml/edac_conference_reg.shtml Visit www.edac.ca for regular updates
EDAC/ACDE
Economic Developers Association of Canada 7 Innovation Drive, Flamborough, ON L9H 7H9 admin@edac.ca 905-689-8771
For additional information contact Joe Roel (416) 238-6681 or email joe@constructionlinks.ca
Special Issue
2011
In the October issue of the Ontario Construction Report we will be publishing a special 4-8 page section on the exhibitor floor plan for win-door 2011. We will publish a detailed plan making it easy for readers and people attending to find the companies they are looking for, each exhibitor will be listed for free with their company name and booth number. We will also be publishing extensive coverage of the show, speakers, exhibitors and interviews with industry professionals. If you are not attending the show you can still promote your company in this special issue with strategically placed ads and editorial coverage. If you are an exhibitor and want to stand out from the rest we have made it easy: Show Special! Purchase a business card ad for $485 we will expand your exhibitor listing which will include your company name, phone and fax number, email address, web address and contact name. Purchase any other sized ad and you will get the enhanced listing which also includes your company logo. The Ontario Construction Report circulates 10,000 printed copies each month to industry leading professionals and decision makers across the province. Take advantage of our special online edition which reaches over 75,000 readers across Canada. Your ads will appear online at no additional cost and can be a tool used in your own marketing purposes.
What do you think when you hear the words surety or bonding? You might form several word images, but probably concepts such as entrepreneurial, forward thinking and entirely Canadian would be far from your thoughts. However, these words accurately describe Trisura Guarantee Insurance Company. Founded in Ontario from the ground-up in 2006, Trisura thrives in an environment where mistakes can be costly, fulfilling surety obligations can be incredibly expensive if things go wrong, and where competitors are divisions of large, deeply capitalized, multi-national corporations. The story of Trisuras birth and rapid growth is a dramatic entrepreneurial success story. Trisura is now a significant player in the Canadian surety market and is poised to have $30 million in gross premiums written by the end of 2011. Today, Trisuras capital base is in excess of $42 million compared to its initial capitalization of $25 million, which is indeed a measure of its success in the first five years.
Solid relationships and innovation result in a Canadian-owned surety underwriter which truly understands contractors needs
Bonding capacity for $100 million revenue contractors Trisuras excellent results have allowed it to increase its capacity, offering brokers an alternative for their larger contractors. The insurer now has the capacity to work with contractors who have a revenue base in excess of $100 million which is an exceptional achievement for an organization that only seven years ago, was a dream in the eyes of three entrepreneurs, Mike George, Bob Taylor and John Garner. George says the key to the companys success is the depth and strength of its partners and the strength of its employees relationships with brokers, clients, reinsurers and financiers. Most importantly, however, George says it is Trisuras ability to offer a responsive and non-bureaucratic service which is rarely seen in the surety industry. Brokers and clients interviewed for this feature describe Trisura as the ideal surety provider. Trisura offers Canadian ownership, a speciality focus and a major commitment to the construction industry, says Dean Drevniok, president of Frecon Construction Ltd., a successful Ottawa contractor. Drevniok said Trisura has an entrepreneurial spirit which most approximated the dynamics of our company. Frecons broker is Petrela, Winter & Associates, one of several who work with Trisura. (You can see their advertisements and some of their comments describing their relationship with Trisura in this special supplement.) Brokers appreciate Trisuras responsiveness Brokerages, like their contractor clients, appreciate Trisuras responsiveness and ability to see and understand the contractors business beyond the numbers, but to also take into account the people, relationships and successes of their clients business. Sure, Trisura requires solid financial resources and guarantees to provide bonding as the risk would be too great for everyone if underwriting fundamentals are not observed. But Trisura, with its Canadian employees on the ground with their deep understanding of local market conditions, can often provide surety solutions which other underwriters may quickly dismiss. The insurance businessss is very much relationship driven and our history with Trisura goes back longer than Trisura itself, to long-term relationships we have with many of the individuals who are building Trisura today, said Neil Morrison, president and CEO of HKMB HUB International and HUB International Ontario. HUB and Trisura have the benefit of many points of contact and many mutual resources that allow us to efficiently and competitively respond to client needs and expectations. (See additional broker comments on page B9). Trisuras surety manager Chris Kucman says, for example, a contractor may be looking for support on a large project or program, but their financial statements might not be strong enough in the eyes of the particular surety. We take the time to understand the whole picture and will take into account the contractors reputation and relationships they have in their community, the present and future business plans the contractor has made, and other aspects of their company that dont necessarily show up on their balance sheet, Kucman says. Our decision making is based on overall risk assessment and not just from a review of certain financial figures, which makes a big difference when truly partnering with the contractors we support. Brookfield principal investor Trisuras principal investor, Brookfield Asset Management Inc., is a global asset manager focused on property, renewable power and infrastructure assets with approximately $150 billion of assets under management. Mike George says that combining Brookfields financial strength with the founders depth of understanding and
knowledge of the Canadian and international insurance and surety industry, allowed them to build an effective underwriting team while acquiring the reinsurance support required to meet the needs of the Canadian contractor. The entrepreneurs then had a solid plan to make a powerful, positive, impression on both federal and provincial insurance regulators across Canada. In 2005, the group presented their proposal for Trisura to the federal government regulator, the Office of the Superintendent of Financial Institutions. George says officials, astounded by the quality and thoughtfulness of Trisuras presentation and background material, told them: You are a step above the competition. The step above phrase has become the companys motto. In addition to Toronto, Trisura has offices in Vancouver, Calgary and Montreal, with solid broker relationships in all ten provinces and three territories across Canada. The company has grown to more than sixty employees who enjoy working in its entrepreneurial and empowering environment. Avoiding bureaucratic bottlenecks We dont stand on structure here. If the most junior underwriter gets something he needs a senior set of eyes to review, he goes directly to the right senior person. says Janet Mascitelli, Trisuras vice-president, surety, responsible for broker relationships and underwriting in Ontario and Atlantic Canada. We keep our organization flat. In other surety underwriting companies you have to go to somebody who feels they have to put their imprint on a decision, resulting in delays as the file moves through the management levels before it reaches someone who can actually make a decision. Our approach is much faster and more nimble which makes it really exciting to work here, she says. Trisuras underwriters are not territorial as brokers can comfortably
CONGRATULATIONS TO TRISURA
Dwight Burns President Suzanne Johnston Vice President
1400 Wellington Street, Ottawa, ON K1Y 2X2 Phone: 1.613.226.2080 Fax: 1.613.226.3510 Email: dburns@bandj.ca sjohnston@bandj.ca
Visit us at www.bandj.ca
work with several different underwriters at the same time, allowing for specialized knowledge and more rapid response to urgent files. Each underwriter here has a feeling of ownership which is truly rare in the surety business, Mascitelli says. Meanwhile, Chris Sekine, senior vicepresident, surety, describes how Trisura has built its relationships with brokers and their clients. A big part of our success has been the support weve received from all of our partners, he said. Our brokers are our customers. Were trying to support their needs and to support their customers, the contractors. A lot of communication is talking about ideas, not being constrained to the age-old surety box. We think out things and ultimately look for ways to bring solutions to
the table without shutting down and saying no, which is often the easy answer. Of course, we cant say yes in every case, but ultimately what we like to do is to find a solution, to think a little out of the box, so we could, for example, share some ideas that might lead the clients to the bonding they are seeking. Sweet spot in the middle Trisura, like other surety providers, needs to know that the clients will be able to fulfill bonding requirements. This isnt a problem for large multi-national contractors with stellar reputations and deeply capitalized resources, while bonding capacity is generally out of the range of smaller contractors without personal assets and a proven business track record. Trisuras sweet spot is in the middle: contractors with
a solid reputation, known to their brokers and with a proven reputation in their community. Here, Trisura can often respond much more rapidly and provide higher bonding limits than the competition who focus purely on the contractors financial ratios. Were Canadian owned and we are all very experienced in the Canadian marketplace, said Mascitelli. We do a little more than our competitors by not going to a big U.S. company for approvals. We evaluate the Canadian risk right here. Mike George, meanwhile, says Trisura has provided the Canadian contracting community a refreshing choice and some meaningful competition in the surety marketplace. Five or six years ago, there was a definite need, he said. In 2005, well over 70 per cent of the surety premiums in Canada were with five surety companies. Still, even with the industry connections and backing of financial giant Brookfield Asset Management, George knew he needed to take a leap of faith when he decided with his partners to start Trisura. For example, George said Chris Sekine,
then the managing director of a major multinational surety company, decided to make the jump after talking with his wife, who told him, If you dont do it, you could regret missing a once-in-a-lifetime chance to be part of the start-up. He wanted to take the chance, fresh and new and exciting and entrepreneurial, George said. Once Chris joined us, and we attracted a couple of dozen other great people, we knew this would be successful. George says colleagues in Trisura truly enjoy their work and the business. The surety business is a truly unique opportunity in working with contractors, developers and commercial clients and helping them to succeed. You are really betting on the success of the clients you are able to gather information, you say yes, and if they succeed and do well, youve put your name behind their business and know youve contributed to its success. Its a lot of fun, working with great brokers and contractors who are truly making things happen in the Canadian economy.
When Trisura Guarantee Insurance Company first opened its doors in 2006, its business plan included a desire and strategy to provide developer surety products for the Tarion Home Warranty Program. In its fifth year, Trisura became an approved issuer of Deposit Insurance/Warranty Bonds and Excess Condominium Deposit Insurance (ECDI) facilities. Being well positioned with seasoned staff and a solid infrastructure to provide expertise and made in Canada surety solutions, Trisura now offers these developer surety products to their
Canadian broker partners for their developer clients. Recently joining the Trisura team, Kim Roberts brings six years of underwriting expertise to the product line. Kim rounds out the developer surety team with industry veterans Janet Mascitelli and Mike George. Trisuras appetite for developer surety risks include small to mid-sized development, with a specific focus on projects of about 100 units and an anticipated construction schedule of less than 18 months. Trisuras strategic focus in this regard is based on a recognition that most large projects are already adequately serviced in the industry. Trisura will offer Tarion bonds and ECDI facilities through its broker partners to optimize the opportunity to work with this niche market that has been, until now, underserviced. By working in collaboration with its select broker partners, Trisura intends to reach out to developers who have been unable to gain the attention of the larger players in the surety industry. Deposit Insurance/Warranty Bonds and ECDI facilities can allow a de-
veloper to maximize their cash flow and reduce borrowing costs. By tactically seeking out knowledgeable experts in relevant areas of the industry that can make up a successful condominium development team, Trisuras select broker partners can put developers constructing in the small to mid
sized project domain on a level playing field with their larger counterparts. Janet Mascitelli is Trisuras vice-president, surety. Kim Roberts is senior underwriter, developer surety.
Owning and operating a construction company in todays complicated business environment is a challenging and risky proposition. Contractors are exposed to a myriad of risks that can negatively impact their company and the list of potential issues is virtually endless. The best contractors rely on a number of experts to help guide them in avoiding the pitfalls on their path to success. One of the most vital of these trusted advisors is a truly knowledgeable surety and insurance broker. A strong broker will be an influential advocate on your behalf, helping you procure surety bonds and insurance products critical to your business. Brokers serve their clients by using their expertise to maximize surety support and arrange ideal insurance coverage and products. A strong broker will fully understand all aspects of your business. Knowledgeable brokers go deeper as theyve developed
a thorough understanding of the construction business and its inherent risks. They are, in many ways, jacks of all trades. They have a great understanding of the construction industry, the insurance and surety business, accounting, finance, banking and even construction law all aspects of your business. Their experience has provided them with a thorough understanding of the common attributes of both successful and unsuccessful construction companies. They can help you identify business risks and provide advice and strategy to manage and minimize them. They help you keep your business on the right path. The biggest and most common mistake made by contractors in selecting a broker is to commoditize the products and services they are purchasing by choosing based on price alone. Rather, you should think of your broker as a trusted advisor. In choosing such an important advisor, you should place emphasis on knowledge, service and advice, not just price. A trusted broker can provide many value-added services. This may include regular reviews of your companys
financial statements, helping you develop strategies aimed at maximizing surety capacity. Your broker may also review contract and subcontract wordings to assist in evaluating owner payment risk and the risk of supplier and subcontractor default. Additionally, your broker can provide input on succession planning and share relevant industry information and best practices. A knowledgeable surety broker matches the needs of the client to the appropriate surety provider, seeking the best fit as each surety has a different appetite, capacity and attitude. Of course, the characteristics of a surety company can change over time just as your needs as a contractor can change. Your broker must continue to evaluate where you as the client are best served. Periodic meetings between you and your surety should be arranged by your broker in order to strengthen your bonding relationship. You should be able to share your vision, your plans and your goals with your broker. Your broker should work to help you achieve your goals through advice and guidance based on invaluable experience and knowledge. One of the most important advisors to a contractor is its surety and insurance broker.
Construction is an extremely risky business. Although the average life expectancy of a construction company is only about seven years, many firms last much longer. Interestingly, certain common characteristics are exhibited by the most successful of these construction firms. Their traits also happen to be the key areas of focus for surety underwriters. As you would expect, contractors that exhibit these characteristics benefit from greater surety credit. The senior staff at Trisura have each spent more than 20 years focused on the construction industry, working with contractors and their brokers in evaluating surety credit. We have developed a deep and lasting respect for contractors. Contractors are pure entrepreneurs who risk everything by committing a fixed price to get a job done. As a surety, our job is to evaluate and assess construction and business risk, and to ultimately decide whether to put our companys assets on the line to bond a contractor. Sureties evaluate the 3 Cs of credit in their assessment of a contractor character (integrity), capacity (ability to do the work and track record) and capital (working capital, net worth, cash the financial strength of your company). However, a contractor must inspire a fourth C in its surety underwriter confidence. Surety underwriters are human. If their confidence in you is high, they will tend to support you to the maximum amount of their ability. We hope the following tips will help you maximize your surety credit and build a more successful construction business. Planning The most successful companies plan for their success contractors included. They budget and forecast revenues, expenses and cash flow and they compare these projections to their actual results. They develop annual and often long term business plans and they execute them effectively. Successful contractors plan for the future by establishing well thought out succession plans. In short, they attempt to keep surprises to a minimum. Plan effectively and share with your surety underwriter the strategic direction of your organization. Stick to your knitting Focus on the work you know and the work that your organization can handle. Variables to consider include scope of work, resource allocation, geographic location, size of jobs and people. The best contractors demonstrate discipline and self control in the work they pursue. They will not bet the company on any one job. Nor will they attempt to get jobs for ego or legacy. Recognize that your construction company is a business and the ultimate goal should be the bottom line. Risks and rewards should be evaluated and balanced. We often hear good contractors say sometimes the best job is the one we did not bid or get. Build your balance sheet We look for our contractors to make money and retain profit (at least some) in the company. This may sound obvious, but the most successful contractors have built a strong foundation by adding to the companys financial strength year in and year out. Working capital, the liquidity or net cash resources of a firm, is a true sign of strength as it demonstrates a contractors ability to deal with the inevitable short term hiccups involved in the construction
Please see page OCR C8
www.fcainsurance.com
Surety credit
Continued from page OCRC7
business. Most sureties will simply calculate net worth and working capital and apply a leverage factor to determine the maximum amount of surety support. A basic rule of thumb is the higher your working capital, the more surety support you will get. Avoid the bank With few exceptions, general contractors should have positive cash balances and not borrow (except to finance the odd fixed asset). Sureties tend to have a negative view of generals who borrow regularly to finance their day-to-day operations or work in progress. These companies will generally not get the same level of surety support as generals that operate with healthy cash balances. Subcontractors, by their nature, often tend to borrow as they have to finance labour and materials. It is important, however, for any contractor to have an operating line of credit available. It will act as a buffer if cash flow gets tight or unexpected events occur. Establish your operating line of credit when times are good (banks dont want to lend when times are bad!). Also, dont allow the bank to secure the operating line of credit
with cash. This simply defeats its purpose. Recognize that if your company relies heavily on the bank, you have given up some control and flexibility of your organization. Companies in this situation are paying the bank rather than themselves. The contractor earning interest income from positive cash balances has a competitive advantage over the contractor paying interest expense because it borrows. Lastly, when purchasing fixed assets (such as equipment or land and buildings) use longer-term financing to borrow rather than your short term operating line of credit. This will adequately match a long term asset with a long term liability and preserve your companys working capital. It will also ensure the full extent of your operating line is available to fund daily operations, which is its purpose. Keep your company clean and simple Complex and confusing organizations with different fiscal year end dates and numerous inter-company transactions do not inspire confidence. They are far more difficult for us to understand. Clean and straightforward organizations get the most support. If you are going to invest in opportunities outside of your construction business, keep them separate from the construction company. Avoid compromising your bread and butter contracting business.
Practice prudent risk management Reduce and spread your risk by signing balanced contracts that you understand. Before signing a contract, ensure the client you are about to work for can and will pay you. Bond back your major sub-trades and suppliers to protect your company if they default. We recognize that all contractors want to maximize profit, but at what risk? Take as much risk out of your jobs as possible while protecting your margin. This is the common balancing act for all contractors. Prudent risk management is a must, as more risk continues to be downloaded from owners and their consultants to contractors. Also, ensure your business is adequately insured, including key man life and critical illness insurance payable to your business in the event of your untimely demise or illness. Keep disputes and litigation to a minimum Litigation is expensive and has uncertain outcomes. The only sure winners are the lawyers. As construction is full of disputes, excellence in dispute resolution is a differentiating factor for the best contractors. Surety companies do not like to issue lien bonds and dislike getting dragged into fights. You will find that surety underwriters have the highest of confidence in organizations that deal with their problems quickly and quietly. Build the best team of professionals you can Surround yourself with experts in all facets of your business. This includes your surety and insurance broker, your accountant, lawyer, banker and surety underwriter. The best contractors draw on these resources like an external board of directors. They use the advice of experts to help shape and direct their business. As there
are very few of these experts in each region of the country, get the best and draw on their knowledge frequently. Provide quality information Regular flow of information to your surety broker and underwriter allows them to know whats going on in your organization. This will help them provide you with quality service. Most look to receive accurate and timely financial statements each quarter, work on hand reports and listings of accounts receivable and payable. Advance notice of large upcoming tenders is also a plus. Good information flow also helps to avoid surprises. The timely flow of information will create a higher level of comfort and will increase your surety support. Sureties generally require fiscal yearend financial statements to be prepared on a review engagement or audited basis. Notice to reader statements are generally not acceptable. Get to know your surety underwriter Insist on getting to know your surety underwriter, and especially the decision makers within the surety company. Our comfort with a contractor increases with familiarity. Get together with your surety underwriter from time to time and it will help you maximize your support. Hopefully, these tips will give you a better understanding of how a surety underwriter approaches your business and will enable you to maximize your surety support. More importantly, they hopefully showed that a good relationship with your surety broker and underwriter can be key to the successful growth and management of your business Mike George
Trisuras success is built on solid and sustained relationships with Canadas leading insurance and surety brokers, who have the depth of relationships and understanding of local market conditions and their clients requirements. Here are some comments from leading insurance and surety brokers: (Brokers comments are in alphabetical order.) Lou Civichino, ELM Insurance Brokers Ltd. Our relationship with the management of Trisura goes back in excess of 23 years, namely with Mike George. The one thing that impresses me the most about Mike is is positive mental attitude a positive attitude toward risk, people and relationship. This attitude is shared across the entire Trisura organization. It clearly comes through in their desire and willingness to work together in the best interests of our clients. This positive mind-set of the entire company has led to an uncompromising business relationship between our two respective firms for which we are certain will continue for many years to come. Wade Corby, Masters Insurance Over the many years doing business with Mike George, Chris Sekine and the rest of the Trisura team, we have developed a mutual respect and trust that has led to not only a valued business partnership but also true friendships. We were fortunate enough to go on a two-day golf outing with Mike, Chris, Bob Taylor, Matt Baynton and Chris Kucman. The only thing more enjoyable than their friendship and camaraderie we shared was witnessing Kucmans tormented soul on the golf course. It is enjoyable doing business with Trisura as their enthusiasm is contagious. Kelly Parker, HKMB Hub International Integrity. The individuals at Trisura exemplify this by treating our clients, along with everyone on our surety team, fairly, honestly and respectfully. There have been a few times when we have thrown a hail Mary Pass to them. These are specific instances where we had very little time to meet a deadline for a clients bond requirements, or where there were tough issues to address. Together, we rolled up our sleeves and completed these challenging opportunities. These are also some of the more exciting and rewarding instances that we enjoy in business. One of the values of our firm is to make our clients more successful. We partner with people and organizations like Trisura to make that a reality. Shane Sinclair, Marsh Canada Limited Over the past five years, Trisura has built a solid team that understands not only our business environment but more importantly the businesses and pressures of our mutual clients.
They have fully invested themselves in the construction industry. Their dedication and knowledge are two of their biggest strengths. They understand that we as brokers are in the service game and work with us to provide solutions to the challenges of the day. Gregory Petrela, Petrela, Winter & Associates We have worked with Trisura since their inception in 2006, and our relationship with some of the individuals on their management and executive team goes back almost 20 years. We value and appreciate the experience and professionalism of the Trisura team. They combine an expert understanding of construction surety risk with sound general business principles, which enables them to deliver effective and practical bonding solutions. Like us, they are construction focussed, and strive to make a positive impact on not only the bonding needs of their clients but their overall businesses, also. We are proud of our association with Trisura, and look forward to continuing to work closely with them in meeting the bonding needs of the construction industry we both serve.
Jon Tondeur, Stevenson & Hunt The answer (about why we enjoy working with Trisura) is really clear for us it is in the personal connections with the staff at all levels of Trisura and Stevenson & Hunt. This leads to trust and respect and a general willingness and desire to do business with them. They look after us and we look after them with respect to the business issues and surety requirements. Weve known the Trisura principals for many years, even before they started the company. When Trisura opened, we coincidentally were having troubles with another surety provider in terms of their treatment of our clients and their handling of our book of business. Trisura reviewed the situation with us and in the end we made the decision to have Trisura take over the entire book of clients. We knew they would handle the clients professionally and indeed they have. We continue to spend a lot of time with Trisuras staff and this is at all levels of our respective organizations. This means we are all sharing knowledge and understanding to serve our clients even more effectively.
Trisura
StoneRidge Insurance Brokers - Vaughan 129 Rowntree Dairy Road, Unit 3, Woodbridge, Ontario L4L 6C9 Tel: 905-856-9199 Fax: 905-856-9133 eferrari@stoneridgeinsurance.ca
Competing in todays commercial surety marketplace requires quick turnaround times, meticulous attention to detail, the ability to manage volumes of data, and the expertise to develop unique and innovative solutions for brokers and their clients. In the wake of the economic crisis and the ensuing downward pressure on profits, many companies have had to re-think the way they do business. This is particularly true for commercial surety. This class of business tends to be highly transactional as many bonds have smaller penal sums, are numerous and are generally required for regulatory compliance such as contractors license bonds. As a result, the efficient flow of information and a streamlined process is a must for the effective delivery of commercial surety bonds. Automation becomes the logical solution. This is not to say that automating surety products does not have its challenges - many variables come into play. Most off the shelf programs are not able to meet all of the requirements of individual brokers and their particular clients, which is why Trisura has taken the approach it has
in developing customized programs that complement the existing processes of the broker and their clients. Our newly created portal solution enhances broker administration processes, making them more efficient for data management, storage and retrieval. The portal does not create duplicate entry functions for the broker, nor does it intrude on the brokers existing system. The portal is conducive to program business as well as large volumes of various bond types which have similar underwriting workflows. It allows all parties to transmit data to one another without interrupting or delaying the bond application process. All programs are designed to the unique specifications of the broker and their clients, the workflow designs range from basic uninterrupted models to more intricate workflows. Trisura specializes in various classes of commercial surety, including licence and permit bonds, fiduciary bonds, lost instrument bonds, customs and excise bonds and carnet bonds. We are able to consider the bonds required to operate your business as well as bonds which are required for your personal needs. For more information please contact your Trisura broker. Pina Mazzoli is Trisuras assistant vice-president, commercial surety.
The Canadian surety market is becoming more challenging with higher claims rates, especially in western Canada, but representatives of one of Canadas most successful and rapidly growing surety providers indicate that opportunities continue to be promising for contractors who manage their affairs properly. Claims are going up, says Mike George, co-chief executive officer of Trisura Guarantee Insurance Company. Failures overall in the business are increasing. Contractors are having a tougher time than a couple of years ago. This means, as loss ratios increase, surety providers are necessarily becoming more cautious about who they will cover. Large contractors will not have trouble finding bonds, says Trisuras senior vicepresident, surety, Chris Sekine. But smaller regional contractors may find it harder to obtain coverage. The solution, they say, is for contractors to always keep their balance sheets and business practices in order and to communicate openly and proactively with their surety brokers and providers especially if they see any clouds on the horizon, unexpected events or need to expand their capacity. No one likes surprises, George said. Sureties like contractors to share both good news with us and bad news. Contractors should meet their surety company at least twice a year to discuss business plans and business results. They should also provide their surety with regular fi-
nancial information, including quarterly financial statements and work-on-hand reports to get information on a trending basis. He said if problems are looming, such as owners not paying or jobs running into difficulties, a supportive surety will work with contractors to find solutions before they get out of hand. We have a lot of people who are experts in the industry, and well take a team approach to helping the contractor out. This mitigates the exposure to the contractor and ourselves. One thing very few people know about the surety industry is that we are often able to help contractors (in difficulty) to the finish line but of course were interested in working with good contractors, we want to provide them with tips and ideas on how they can get the most out of the surety relationship. Trisura is a Canadian-owned business focusing on construction surety. All the decisions are made here, said George. Working through a network of qualified surety brokers, the company provides services to approximately 1,000 contractors across Canada. This large client base, coupled with intensive focus on the construction industry, allows Trisura to be both competitive and responsive. Sekine suggests that contractors can build the strongest financial case for surety providers by always focusing on what they do best. They should keep the money in the company, and minimize off-balance sheet investments or projects not related to their primary contracting business. As a guru of the surety business said to me, contractors should feed the goose that
lays the golden egg their construction business is the goose, continue to invest in it, make it stronger and avoid sidetracks like restaurants or speculative real estate investments. Construction is risky enough in itself. Our interests always match those of our client contractors. If the contractor does well, the surety does well so we always are working in the best interests of the contractors, he said. In addition to surety, Trisura provides a wide range of insurance products for contractors and other commercial businesses including liability insurance for directors, officers and employment practices issues. You can learn more about Trisura at http://www.trisura.com or your surety broker (you can find qualified brokers at the Trisura.com site).
Reprinted from the May 2011 issue of Ontario Construction Report
905-279-8880
www.bbcg.ca
Parade of Products
1806 Woodward Dr., Ottawa Tel: 613-727-2666 20 Edgewater Street, Kanata Tel: 613-831-6800 1282 Algoma Rd., Gloucester Tel: 613-746-7070 130 Jean Proulx, Gatineau, QC Tel: 819-776-3153
Canadian-owned business thrives through decades, respecting core client and community values
HEATHER SEFTEL-KIRK The Ontario Construction Report Special Feature
Boone Plumbing and Heating Supply Inc. is celebrating its 75th anniversary in 2012 marking three quarters of a century serving the Ottawa/Gatineau region since the business opened in 1937. Boone launches the celebration September 7th with the 2011 Parade of Products. Bringing together manufacturers and customers, the event features more than 75 manufacturers displaying their latest products and services. The show includes several industry seminars, a supplier appreciation luncheon, giveaways, great door prizes and a few thank you surprises. Desrosiers Distributors (Gatineau), Boones largest branch, also celebrates its 40th anniversary in 2012. Boone is one of the few 100 per cent Canadian owned and operated plumbing and heating distributors in the Ottawa area. Claude DesRosiers, vice-president and general manager, recalls that when he started with the company 40 years ago, Boone operated from a 15,000 sq. ft. facility on St. Laurent Boulevard (Ottawa), with DesRosiers operating from a similarly sized warehouse on Cousineau Street (Gatineau). Back then, Ralph Boone, Pierre DesRosiers and Jack Minuk owned the
company and focused mainly on the residential market and small commercial projects. Over the next several decades, the company went through many owners, eventually acquiring a heating and ventilation company called Guy Chenevert Ltd. In 1987, Groupe Deschnes Inc. acquired the company. When we were purchased by Deschenes, a period of continuous growth
and development began, DesRosiers said. They had a long-term vision and were ready to invest in our people, in buildings and in technology. They helped structure our operation, allowing us to move forward. Deschenes was already an important player in wholesale distribution and provided support in many key areas of the business to assure our growth and that led us to where we are today.
Groupe Deschnes Inc. is a family owned business, also in operation for close to 75 years. With more than 1,350 employees and 90 outlets across Canada, they are one of the largest 100 per cent Canadian owned and operated wholesalers in Canada. Groupe Deschnes was recognized as one of Canadas 50 Best Managed Companies in a national competition in 2009 and re-qualified in subsequent years. As well, the Great Place to Work Institute of Canada has recognized Boone as one of the Best Workplaces in 2009. We were extremely proud to receive this award because an employee survey determined, in large part, qualification for this recognition, DesRosiers said. Boone offers clients one-stop shopping, including plumbing, heating, ventilation, air conditioning, waterworks, tools and mechanical products. The company works with contractors, institutions, designers, property management, schools, hospitals and government. Boone operates four wholesale locations, including 1282 Algoma Rd., 1806 Woodward Dr. and 20 Edgewater St. (all Ottawa), plus 130 Jean Proulx (Gatineau). Boone also operates three showrooms
under the Mondeau banner (world of water in French): one in Gatineau, and the others on Algoma and Edgewater. The showroom business evolved over 20 years as a response to big box stores. Boone wanted to ensure contractors were supported and provided with display locations where they could refer their customers. Contractors, architects and designers love the showrooms because they offer homeowners access to great showcases of quality products with qualified, factory-trained consultants to help with product selection and project coordination from start to finish. The Boone sheet metal tin shop fabricates duct work for use in furnace and air conditioning installation and features a plasma cutter for superior accuracy. The waterworks division offers all the components needed for municipal sewer and
water projects. Boone is committed to providing an unequalled, hassle-free experience. We want to keep adding value for our clients by making sure we have the products and services customers need, available when they need them, at competitive prices. Several innovative ideas include the Boone Snack Shack where contractors can grab a quick snack while picking up an order and a curb-side service option offering contractors the convenience of picking up material after hours using a lock box system. We also offer a 24-hour emergency service providing access to material 24-hours a day, seven days a week. Our monthly newsletter Shop Talk, published since 1993, and also available online at www.booneshoptalk.ca, provides industry related news and highlights the very latest products and trade innovations,
DesRosiers said. We also feature our employees and promote the many monthly supplier sponsored events. DesRosiers credits much of the companys success to its employees, many of whom have been with the company for decades. Boone is committed to all employees and believes a satisfied team member will always work hard to satisfy clients.
We believe in open lines of communication and make sure we include everyone in our plans and vision. This openness includes annual town hall meetings for all employees for sharing and discussing what has happened in the previous year, and action plan highlights
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Mondeau showrooms provide interactive hands on displays for even the most discriminating clients
Customer service, convenience, and inventory are top priority at Boone Plumbing.
Walmar Mechanical Sales is proud to be associated with your team and look forward to being part of your future growth and success!
Sluyter is proud of our long standing association with Boone and wish them continued success.
for the coming year. It includes profit sharing, not just for management, but for every employee. Communication also means sitting down with employees to discuss career planning. We have many employees in these sessions who say, You are interested in me so I am interested in staying with Boone. It is very gratifying to see an employee grow, develop and be part of our success. Behind the sentiment of supporting employees and clients alike is something
DesRosiers calls true north values being positive, supportive, involved and just doing the right thing to help others succeed. There is a saying that success breeds arrogance but we work to ensure we stay humble in serving our clients and in the way we treat our employees. We want to reach our 100th anniversary and be able to look back, equally as proud as we are of our first 75 years. Part of those true north values mean being involved in the local community. We
strongly believe it is fundamental for local businesses to give back to the communities where they do business. Boone is involved in many projects and with many groups including the Ottawa Hospital Foundation, La Cite Collgiale trade school, Algonquin College trade school, the Food Bank and Habitat for Humanity. Many of our em-
ployees are involved in these efforts and believe, not only in donating, but in participating on boards and committees, DesRosiers says. Another element of employee support
and customer service revolves around leadership. Our company has thrived because of the leadership throughout our operation. It adds value to our customers when leadership values are followed. Failure is the result of many bad decisions over time and success based on many good decisions. We work to ensure our future with good decisions and with solid leadership training. Boone is currently working with the Telfer School of Management (Ottawa) on a leadership program to ensure future leaders in the company develop the skills and competencies needed. Strong leadership will ensure continued excellence in service and help us achieve new stanContractors have grown to rely on Boones fast and convienent service
dards of excellence in distribution - the companys guiding mission. Boone focuses on old fashioned business values. We own our own buildings and land you can just tell this is not a business run by numbers alone. We want to be world class but we dont want to ever forget who helped us achieve our success. I have personally had the privilege to serve three-generations of customer business owners from the grandfather to his son to his son. Their success is our success. We are always pushing the envelope with technology to improve our operating efficiencies and costs and pass those savings on to the client. Boone supports its clients through new product sessions, where manufacturers meet with users to provide the training to understand and support the product. Boone is always looking to raise the bar and do better. The company will soon be breaking ground on a new 35,000 sq. ft. expansion to the Algoma St. facilities including warehouse, administrative spaces and a 14,000 sq. ft. showroom. We need to increase our capacity to stock what the clients want and need fast to complete their projects, right here in Ottawa. The showroom will be a balanced space to showcase the beauty of the latest products, combined with a sense of comfort and welcome for everyone who visits. Over almost 75 years, Boone has built a reputation for excellence, as an employer, service provider and corporate citizen. Boones success correlates with the corporate mission statement, which mandates creating new standards of excellence; and being the number one choice where people love to work, customers love to buy and manufacturers love distributing their products. For more information about Boone, visit www.boone.ca.
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Booth 70 MANSFIELD 2499 Sunnyhurst Close Oakville, ON L6H 7K5 bporter@mansfieldplumbing.com 416-315-5935 Booth 71 FAIRMONT DESIGN 6950 Noritsu Avenue Buena Park, CA 90620 marksuzylouw@yahoo.ca 905-727-5893 Booth 73 ROYAL PIPE 131 Regalcrest Court Woodbridge, ON L4L 8P3 prabuckid@royaobuildingproducts.com 416-884-7828 Booth 74 USF WATERGROUP 6603 Wendy St. Cornwall, ON K6H 7J2 richard.dumoulin@watergroup.com 613-931-2119 Booth 75 TURBO TORCH / LITTLE GIANT R.R. #1, Rockwood, ON N0B 2K0 brian@powermarketinginc.ca 416-722-5253 Booth 76 ERIE (ONTOR) fboisvert@ONTOR.com Booth 78 MYERS/HYDROMATIC 155 Tansley Drive, Carp, ON K0A 1L0 dparsons@canmech.com 613-831-8724
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The Algonquin Centre for Construction Excellence (ACCE) is an integrated education and applied research environment designed to promote construction as a first choice career and Algonquin as a learning destination. A model for advanced design, sustainability and building practices, it incorporates the disciplines of architecture; interior design; engineering technology; building trades; residential, ICI and heavy construction; and construction industry research. It brings together industry, faculty and students and will become a hub for all areas of construction. The $79 million, 180,000 sq. ft. facility has a capacity for 2,500 students, of which 600 are new construction seats to Algonquin Colleges offering as well as many new programs. It features a storm water recovery system capturing rainwater to flush toilets; solar panels providing some power and hot water; a biowall a five storey living wall controlling humidity and cleaning the air; an upgraded building envelope including R40 insulated walls, triple glazed windows and an R50 insulated roof; an undulating green roof; air condi-
tioning and heating achieved through heat pump technology; and it increased the biodiversity of the area through the planting of several hundred trees in 20 varieties, plus 20 varieties of groundcover. The project also incorporates two City-led initiatives the construction of a 65 metre pedestrian bridge across Woodroffe Avenue and a 285 metre long tunnel as the first phase of future transit development for Baseline Station. Funding the vision Claude Brul, dean of the faculty of technology and trades for Algonquin, says the original concept for the facility began in 2006 with his predecessor, John-Paul Tapp. Initially, there was a call for a better facility. We recognized the way the trades were, in different buildings, they could only operate in silos, not in real world teams. A few reports focused on the lack of skilled trades and predicted labor force shortages, funding became available through advocacy. and everything fell into place. The start of creating the vision
began with refocusing learning for an integrated environment, so a study of space and needs analysis was undertaken. The college worked with industry stakeholders, included their feedback, developed advocacy documents, tapped into funding potential, and worked with the City to find the ideal location. We were able to engage government at all levels and work with the City and the communities of Ryan Farm and Centrepointe (near the campus) to ensure a shared vision. The project received funding from both federal and provincial governments and the College committed a sizable amount, acquired through fundraising with industry and community support. John Baird, minister of transport, infrastructure and communities at the time, was tremendously supportive of the project and part of the federal stimulus funding program supporting the project. Joy McKinnon, vice-president of business development, including the Algonquin College Foundation, has been responsible for ensuring the $7 million fundraising goal pledged by the College is achieved. Through the
the students should be able to interact with the life of the building. Throughout the process Cook says the plan and work were unified by the preliminary concept for the building. The documentation, test plans and diagrams were created so interested parties could submit tenders based on apples to apples proposals. From the start it was important for the college to have an identity and presence in the community. It was important Algonquins commitment to sustainability was visible, clear and understandable. Although for many years Algonquin had a vision for what the ACCE should be, BuildGreen helped bring that vision to reality by defining the vision and codifying it for the bidding process. Scott Demark, a partner with BuildGreen, said this meant working to create the objectives and guiding principles for the Centre through broad consultation with users and educating the College on the design build process to ensure realistic expectations. Though this kind of project is what BuildGreen is all about, the ACCE project was the most ambitious it has undertaken in terms of complexity, according to Demark. The difference with this project is that it embodies practice what you preach. It is all about showing the students, from a green perspective, what is possible. In other environments sustainability is not a defining feature but here it is woven through everything. Though some features, such as the green
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the project became a formal proposal, actively researching and preparing information. The objective was to deliver an outstanding academic facility integrating sustainable design features as part of a living laboratory to provide students with a handson approach to learning, said Donald Schmitt, Principal with Diamond and Schmitt Architects, of Toronto. The College prequalified a few design builders who each then came up with a de-
sign and building system. Unlike other projects however, the lowest bid was not part of the criteria to determine the winner. It was a very wise solution, says Jurewicz. The college did not ask for the lowest price bid but instead a price was set. They wanted the best building they could get for that price and so the criteria was more about fulfilling the program, architectural vision and the ability to deliver on time. It is an unusual approach but resulted in the best building possible for the College and the students. Throughout the selection process grc
Congratulations on your Celebration of Completion S&R Mechanical is proud to be the Plumbing Contractor to the ACCE.
2035 Lanthier Dr., Cumberland, Ontario K4A 3V3 Tel: (613) 830-0165 Fax: (613) 830-9152
monitored and displayed interactively, letting viewers understand the invisible forces and processes working all around them inside the building. Though the building is clearly exceptional, Jurewicz said the best time to appreciate the complexity was while all of the work was going on. This was a labor of love for everyone involved. The architectural details were designed to showcase craftsmanship. We had very accomplished sub trades doing their best work, both for pride in what they do and because at some point, their trainees will be there as students, examining what they have done. The craftsmanship we saw was remarkable. Schmitt says the building is planned around social spaces to encourage interdisciplinary interaction. The great hall, with two dramatic seating pods floating overhead, welcomes the visitor into the building, and a terraced commons is an informal work space. A wide linear staircase connects the second, third, and fourth floors of classrooms, studios, and student amenities, with a generous landing at the third floor to encourage informal meetings and discussions. A cantilevered spiral stair then connects the fourth floor to the fifth faculty floor, giving it a unique identity. Brul says anyone who has preconceived notions of
what a trade school looks like will be surprised by what they find. There is daylight throughout the building. From the architecture to the open spaces, interactive space and showcasing of features. This is not a typical school in any way. LEED platinum With the future of building focused on green technologies and building materials, and with Algonquins own commitment to sustainability, McKinnon says green was a huge focus for ACCE, with a goal of achieving LEED Platinum. ACCE is a model of what a sustainable building should be. From the green roof (one of the largest in the area) to the biowall and all of the other sustainable components, ACCE not only showcases the technology so students can observe smart building systems at work, but it also gives them an opportunity to interact with the technology, and to look at the human factors - the impact of students on the building and the building on students. Andre Bogdanowicz, a principal with Goodkey Weedmark & Associates Ltd., responsible for mechanical and engineering services on the project, says all conceivable
Please see page OCR E5
Hugh Doyle of C&M Electric - electrical contractor for the ACCE project
says there will be many benefits to the new facility, including bringing all of the design disciplines together with the construction trades in a more real world environment. Construction Challenges met and overcome Constructed under very tight schedules just under two years - to meet funding mandates, Jurewicz says EllisDon needed to fast track construction methods, meaning construction commenced while the design was still on the table. The steel had to be up before winter so we had to design the building grid before we had the opportunity to speak with the users. This was a huge risk on such a com-
lanes of busy traffic. The bridge, linking one side of Woodroffe to the other, is composed of prefabricated steel trusses resting on three columns (one on each side and one in the median) piled to bedrock. The tunnel, the largest infrastructure surface in the City to be waterproofed, is impressive. The tunnel is 285 m. long, 35 m. wide and 8.5 m .high. It is made up of 245 shoring piles and 865 foundation piles. The concrete walls use
8,500 cubic metres of concrete and the precast slabs 10,000 cubic metres of concrete. It has 1400 tons of reinforcing steel and 450 tie backs. Murphy says both the shoring walls and tie backs were left in place to save time on the schedule. Completed through funding from an infrastructure stimulus program, many phases of the project had to be completed within a very tight deadline, requiring accelerated and unique contract, design, tendering and
BuildGreen Solutions led an integrated design process (IDP) for Algonquin Colleges new Algonquin Centre for Construction Excellence (ACCE, currently under construction). This $70 million, leading-edge building will house the colleges programs in construction trades, interior design and architecture, and engineering and building sciences. Sustainability was one of the foremost objectives in the design and programming of this project: the building will be used for students as a living laboratory, to see, touch and experiment with different construction techniques and technologies. The design-builder, Ellis Don, has targeted LEED Platinum, using on-site renewable energy generation, a green roof, rainwater capture and reuse, sustainable materials choices and a variety of other green strategies.
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case study on how a potentially expensive and complex project can get off the ground. It all started with the college and a really good story about why this project was needed. From there it was in everyones collective self-interest to get that vision from paper to reality. For now mayor Watson is pleased the community has achieved a safe crossing over a once tricky six-lane crossing, and that the trades will benefit from a state-of-the-art facility. The trades were previously in probably the oldest buildings on the campus. Now they have the best and most modern. This is a real commitment towards looking after the trades and the future of green building. In describing the new facilitys appearance, Cook reflected that while older campuses have a clear academic look, and some
of the newer can be confused for office towers, the ACCE stands out. Here you have a facility that portrays something unique. It speaks about engagement and visibility; it looks very much like a place where work happens. Telmosse says collaboration and co-operation, and the vision of Algonquin, were key to the success of this project. These type of projects stem from ownership and in this case Algonquin provided a prime example of championing LEED certification. Then there is the element of collaboration. In a more traditional setting where all of the different trades would have been siloed, this project would not have met the deadlines and would not be the exceptional building it is. Working in the industry Telmosse has a great appreciation for what they have cre-