Quick take

High-risk construction
Government is the 800-lb gorilla in the customer forest in these stimulating times. But is it a good customer?
For example, consider contractor liability. When working on a federal restoration project, normal liability limits don’t apply. In other words, if something goes wrong, you are left holding the bag… and it could be a very big bag. Why is that? The government underwrites itself, unlike customers in the private sector who secure their own insurance.
This has long been a bone of contention for the Canadian Construction Association, which recently updated its members about the unlimited risk they face in such situations.
Change does seem to be in the air. Both Defence Construction Canada and Public Works and Government Services Canada are sympathetic to CCA’s view that liability limitations are reasonable, said CCA President Michael Atkinson in a recent interview. “We’re on the same wavelength.”
“To introduce such limitations with respect to properties that are not managed directly by Public Works, they need Treasury Board concurrence,” he adds. “Public Works is in the process of preparing a submission to Treasury Board, to go in the Fall.”
The first step is simply to establish the means by which negotiations can be initiated.
Among CCA’s objectives are limiting liability to first-party loss (i.e., the Crown assets themselves). Ultimately, Atkinson says he’d like to see limitations that mirror those set for the private sector in the CCDC 2 documents.
Nobody is comfortable with relationships involving unlimited liability, no matter what the price in the contract is. It’s time to end this extreme and unnecessary risk and it is vital that Treasury Board give its full consideration to the proposals advanced by CCA, PWC and DCC in the near future.

Jim Barnes
Editor
On-Site

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Last poll: Social networking

Last time, we asked Backfill readers whether they felt that social networking technologies were useful in their businesses. The answer was an unequivocal “No.” Only 10 per cent of respondents felt that social networking had been of use from a business context.
It’s worth noting that Backfill readers are a computer-literate bunch, too – since Backfill is an electronic publication, respondents must be regular e-mail users.

Here’s what we asked them:

Social networking web technologies, like Facebook, Twitter and LinkedIn, are all the rage and some users say they are very useful in business. Which of the following statements best represents your view?

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Quick stats:

Permits edge higher in June

Staying above the $5-billion mark for a second month, the value of building permits in June grew by one per cent over the preceding month to $5.2 billion. Permit values were up across the country, except for Alberta, Saskatchewan and Prince Edward Island.
Non-residential (ICI) permits rose 1.5 per cent to $2.5 billion, following an increase of nearly 20 per cent in May.
Commercial permits rose 10.6 per cent to $1.3 billion, mainly due to increases in hotel and laboratory construction intentions in Ontario.
Institutional permits dropped 6.2 per cent to $902 million, after growing 55.6 per cent in May.
Industrial permits dropped 7.1 per cent to $332 million.
Residential permits increased for the fourth month in a row, climbing 0.5 per cent to $2.7 billion.
The value of  engineering projects and land are not included in this research.

Source: Statistics Canada

Employment declines in July

July marked a further decline in employment in Canada, marking a loss of 45,000 jobs - 37,000 of them in Quebec. The unemployment rate stayed at 8.6 per cent, though, as fewer people participated in the labour market. Since October, total employment has dropped by 2.4 per cent, most of it in manufacturing, construction and transportation and warehousing.
After three months of relative stability, construction employment decreased by 18,000 in July, bringing total losses since October to 120,000 (a decline of 9.6 per cent).

Employment by class of worker and industry, thousands  

Source: Statistics Canada

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New in the Forum

On-Site's Forum is a collection of industry articles and white papers that our editors deem to have value for the Canadian construction community at large. Here are the most recent additions:

The buzz on BIM, by Barry Reid and Chantal Bateman
Building Information Modelling can be a valuable tool for contractors in clash detection and in determining the impact of new technologies on schedules, as this article from Georgia-Pacific points out. [2009-08-20]
What prevents you from wearing your safety harness? by Alicia Brady
Despite current knowledge of the importance of fall-safety hardware and procedures, these accidents still occur regularly, according to B.C.'s Construction Safety Network. Why?
Dehumidification vs. heat in construction-drying applications, by Garrett Freeman
High moisture levels can be a huge problem in any construction project. This article from Munters examines some of the benefits of dehumidification technology.
10 ways to prevent fuel theft
These tips on fuel management from 4REFUEL Ltd. may help improve your balance sheet.

News Bytes

Volvo Rents in B.C.
A Volvo Rents location has opened in Winfield, B.C., announces Volvo Construction Equipment Rents, Inc. Located at 2910 Robinson Rd., the facility is owned by Larry Cormier. Among other machines, the location will supply compact excavators, wheel loaders, backhoes and skid steers.
www.volvo.com

DCC announces appointments
James S. Paul has been named president and C.E.O. of Defence Construction Canada of Ottawa, Ont., announces Christian Paradis, Minister of Public Works and Government Services. The appointment is effective Sept. 8, 2009. "Mr. Paul's extensive experience in the private sector will provide outstanding vision and guidance to the Board," he noted. Paul has a 28-year career in senior management in a variety of Canadian corporations.
He also announced the appointment of  William F. Pentney to DCC’s board of directors, effective immediately. Pentney is the Associate Deputy Minister of National Defence.
DCC, a federal Crown corporation, provides contracting, construction contract management and related infrastructure services to the Department of National Defence.
www.tpsgc-pwgsc.gc.ca

Gabe’s is Canadian
Gabe’s Canada Inc. has been established in Toronto, according to an announcement from Westshore Companies Inc. of Sheboygan, Wisc. The firm will supply underground utility construction services. Westshore is also the parent company of Gabe’s Construction Co. of Sheboygan.
Established in 1942, Westshore performs specialized underground utility construction throughout North America, with a focus on telecommunications and fibre-optic cable installation, electric distribution and transmission and horizontal directional drilling.
www.gabes.com

Hertz acquires Irving
Irving Industrial Rentals of Saint John, N.B. has been sold to Matthews Equipment Ltd., a subsidiary of Hertz Global Holdings, Inc., by J.D. Irving, Ltd. The acquisition will increase Matthews' presence in New Brunswick.
IIR’s product line includes aerial platforms, forklifts, compressors, welders, generators, heaters and light towers, among other equipment.
"Irving Industrial Rental has a solid reputation throughout Atlantic Canada and will enhance Matthews' efforts to be the first-choice equipment rental provider for the industrial market in Eastern Canada,” said Gerry Plescia, president, Hertz Equipment Rental Corp.
www.hertzequip.com

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Calendar of events

September 16 to 18: National Design-Build Conference The event provides information on design/build projects of all sizes and includes the Design-Build Fundamentals Tutorial. It is being organized by the Canadian Design-Build Institute. The site is the Hyatt Regency Chicago, Chicago, IL. www.cdbi.org

September 20 to 22: Annual Fall Conference The annual fall conference of the British Columbia Road Builders will be held at the Grand Okanagan Resort and Spa, Kelowna, BC. www.roadbuilders.bc.ca

September 22: Fall Concrete Seminar. Includes a comprehensive seminar program, table-top exhibition and social events. The American Concrete Institute - Ontario Chapter will hold the event at the Mississauga Grand Banquet Hall, Mississauga, ON. www.aciontario.com

September 23 to 26: 25th IIDEX/NeoCon Canada. This design-oriented show and conference includes the Green Building Festival and the World Green Building Council Summit.  The Direct Energy Centre, Toronto, ON is the site for this event. www.iidexneocon.com

October 1 to 2: Session #26. Topics at this conference will include Building Information Modeling (BIM) and performance specifications for concrete.  The Strategic Development Council (part of the ACI Foundation) event will be held at the Inverness Hotel & Conference Center, Denver, CO. www.concretesdc.org

October 6 to 8: ICUEE. The International Construction and Utility Exposition will co-locate with the new H2O-XPO exhibition that targets water and wastewater utility equipment and products. The Association of Equipment Manufacturers and the National Rural Water Association will hold this show at the Kentucky Exposition Center, Louisville, KY. www.icuee.com.

October 17: The Last Blast - Fall Steam Up. Antique construction equipment, including some rare steam-powered machines, will be demonstrated under power.  The Historical Construction Equipment Association of Canada will hold the show at the Simcoe County Museum, Minesing, ON. www.hceacanada.org

October 28 to 29: Canadian Waste & Recycling Expo This trade show for the waste, recycling and public works markets includes a seminar program. Sponsored by a number of industry associations, the event will be held at the Vancouver Convention & Exhibition Centre. www.cwre.ca.

November 3 to 4: BUILDEX Calgary will co-locate with Construct Calgary/Homebuilder & Renovator Expo and DesignTrends Calgary. The MMPI Canada Inc. events will take place at the Calgary Stampede Roundup Centre, Calgary, AB. www.buildexcalgary.com.

November 5 to 7: Design-Build Conference and Expo. An extensive conference program will have a special focus on sustainability.  The Precast/Prestressed Concrete Institute (PCI) has slated the event for the Gaylord National Convention Center, Washington, DC. www.designbuildexpo.com

November 8 to 12: Fall Convention, sponsored by the American Concrete Institute. With a theme of "Spice up your Concrete" the event encompasses more than 300 committee meetings, over 30 technical sessions and the Forum on Sustainability. The site is the New Orleans Marriott hotel in New Orleans, La. www.aciconvention.org.

November 15 to 17: Annual Conference. This Association of Equipment Manufacturers conference will address business challenges related to the recession. Roundtables will include special reference to the situation in Canada.  The site is the Westin Diplomat Resort & Spa, Hollywood, FL. www.aem.org

December 2 to 4: Construct Canada, Home Builder and Renovator Expo, Concrete Canada and the National GreenBuilding Conference will be co-located, offering more than 200 seminars and 1,050 exhibits at the Metro Toronto Convention Centre. MMPI Canada is the organizer and numerous industry associations are sponsors of the event. www.constructcanada.com.

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Next issue: September/October

The biggest technology news in construction machinery today is the Tier 4 emissions standard - the subject of the lead article in our next issue. We'll also be featuring stories on dump trucks and construction trends in the Oil Patch.
That's in addition to all our regular business columns... Construction Software, Contractors and the Law, Risk and Industry Statistics, not to mention the Funny Photo contest!
If you have any questions or suggestions, contact the editor, Jim Barnes, at (416) 764-1612 or editor@on-sitemag.com
For a subscription, click here.

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