CUTTING RED TAPE. The Voice of the Construction Industry

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1 September 20, 2012 CUTTING RED TAPE CCA stakeholders meet with City of Calgary officials to discuss best practices in construction procurement. The Calgary Construction Association (CCA) executive has been working closely with City of Calgary officials throughout 2012 on a number of issues. CCA Chair, Serena Holbrook is very pleased with the progress being made and has commented to her industry colleagues on several occasions that The City of Calgary is working towards a service delivery culture. Jennifer Enns, City of Calgary Manager of Engineering and Energy Services/Infrastructure Information along with her colleague Geoff Kneller, Leader of Professional Practices have been drawing on the expertise from several CCA stakeholders to address various issues facing the City that impacts the construction community. continued on next page... The Voice of the Construction Industry

2 CUTTING RED TAPE cont'd.. One of the major issues facing prime contractors has been the City s prequalification process. While CCA contractor members have waded through a complex prequalification process over the past few years, a joint industry/city committee are reviewing the current prequalification process and the four divisions of information being requested of a contractor by the City, prior to being able to bid work. CCA Co Chairs for the four prequalification divisions are: Andy Carr of Canem Systems (Commercial WCB/Surety & Insurance/COR), Fabrizio Carinelli of CANA Construction (Environmental environmental procedures), Scott Izon of PCL Construction (Safety) and Fred Vine of EllisDon Construction (Technical Category Champions/Project experience). The goal is to streamline the city s prequalification process and assist contractors who have to weave through the process over a period of months in many instances. In addition to prequalification, Bruce Trevitt of Graham Construction is heading up a CCA team of volunteers to assist the City in their quest for a Construction Management contract document that works. Bruce and his CCA team presented the latest CCDC 5B Construction Management Contract for Services and Construction to Andrew Mardon, the City s Supply Manager and his fellow workers in the city s Supply Management Department. Andrew and his colleagues have returned to their offices to digest the construction industry s philosophy of utilizing a standard CM contract. Trevitt s comprehensive PowerPoint presentation to City officials at the Calgary Construction Centre covered all aspects of CM as Agent along with CM at Risk. The presentation concluded with the need for the City to develop a master Core Contract, with the recommendation for the City to embrace and proceed with utilizing the national CCDC contract documents that have recently been adopted by Alberta Infrastructure.

3 CALGARY CONSTRUCTION ASSOCIATION CHAIRMAN S TOUR BREAKFAST Palomino Room, BMO Centre - Stampede Park Tuesday, November 6, 2012 * SEE NEXT PAGE FOR REGISTRATION FORM

4 Chairman s tour breakfast meeting AGENDA REGISTRATION FORM Palomino Room, BMO Centre - Stampede Park Tuesday, November 6, 2012 Keynote Speaker: Topic: 7:30 a.m. Registration John Schubert, Chairman Canadian Construction Association Current Challenges / Priorities for the Construction Industry in Canada 8:00 a.m. SHARP Complimentary breakfast for CCA members 8:30 a.m. Calgary Construction Association update (Serena Holbrook, CCA Chair) 9:00 a.m. Canadian Construction Association update (John Schubert, Canadian Chair) 9:30 a.m. SHARP Adjournment 9:30 a.m. BUILDEX Calgary - Conference and Tradeshow for property management, interior design, architecture, renovation, construction & real estate. All CCA breakfast registrants receive a free delegate pass to the BUILDEX Expo Submitted by: Firm: NAME: (please print) : EVERY ATTENDEE WILL RECEIVE A COMPLIMENTARY 26 TH ANNUALCCA CHAIRMAN S BEER MUG RSVP by fax ( ) or (mail@cca.cc) on or before October 31st, 2012.

5 KNOW YOUR CONTRACT RISKS AND LEARN TIPS TO ADDRESS THEM Your rights and obligations are largely dictated by the contracts you execute. Often these rights and obligations are not easily understood nor readily apparent. Too often insufficient attention is paid by Trade Contactors to the content and meaning of the contracts or subcontracts they are asked to sign. Bidders are often concentrating solely upon the WORK to be performed without due regard for the TERMS AND CONDITIONS under which that work is to be performed. Through the use of the CCA Trade Contractors Guide and Checklist for Construction Contracts, this course will draw your attention to certain clauses which frequently appear in construction contract documents that can adversely affect your rights and obligations. Now you have found the clauses, what next? Recognizing that risk is best borne by the party in the best position to manage that risk, work towards a balanced agreement. Learn some suggestions for amendments and tips on how to negotiate those changes. YOU HAVE AN OBLIGATION TO YOURSELF AND YOUR COMPANY TO KNOW: What Those Risky Areas Are: design, warranties, insurance, liquidated damages etc. What You Are Agreeing To: whether express or implied, they can affect you and jeopardize your business How to Negotiate Changes: a solid understanding of clauses and implications puts you in a position of strength to negotiate change 3 HOURS OF GOLD SEAL CREDITS AWARDED WITH COMPLETION OF COURSE THOSE WHO REFUSE TO READ AND UNDERSTAND THE TERMS OF THEIR CONSTRUCTION CONTRACTS ARE DOOMED TO FAILURE AND BANKRUPTCY. DON T BE A STATISTIC!

6 REGISTRATION FORM PRESENTERS: WHO SHOULD ATTEND: Hugh Loughborough VP Contracts & Risk Management, Aecon Industrial Group and Chair of the Canadian Construction Association Standard Practices Committee Les LaRocque President, Botting & Associates and Chair of the Canadian Construction Association Trade Contractors Council Patricia Steele Flynn Canada Ltd, Legal Counsel Trade Contractors Management, Project Managers, Risk Advisors LOCATION: CALGARY CONSTRUCTION CENTRE STREET N.E., CALGARY CHINOOK ROOM DATE: Wednesday, October 17, 2012 TIME: FEE: 8:00 a.m. - 11:00 am MEMBER $ GST; NON-MEMBER $ GST (includes a copy of the Canadian Construction Association Trade Contractor s Guide and Checklist to Construction Contracts February 2011) DEADLINE: October 10, 2012 *SPACE IS LIMITED AND RESERVED ON A FIRST COME, FIRST SERVED BASIS* Firm: Submitted By: Address: Postal Code: Phone: Fax: Name(s) of Position Registrants PAYMENT: Visa Mastercard Cheque Invoice (members only) Credit Card Number (if applicable) Expiry Date Card Holder Name Total Amount TO REGISTER, PLEASE FAX THIS FORM TO OR coolnet@cca.cc NO CANCELLATIONS OR REFUNDS AFTER October 3, 2012

7 OFFICE SPACE FOR RENT Available NOW CALGARY CONSTRUCTION CENTRE Street NE Available Space Suite sq.ft Suite 205 1,080 sq.ft Suite 207 1,060 sq.ft Suite 208 1,234 sq.ft Suite sq.ft Lease Rate $11.35/sq.ft Operating Cost $6.22/sq.ft plus 8.25% for common area $1000 referral reward upon completion of a one year lease Contact Kris (kris@cca.cc) or phone for more details or to view the space

8 ACA Newsletter September 19, 2012 Government Survey on Infrastructure Spending Members and Your Employees The Alberta government is asking Albertans to help set the boundaries for spending, saving and funding infrastructure through a public consultation called Dollars and Sense. As an Albertan participate today by completing the online survey. Deadline is October 31 st Given the current lack of infrastructure funding by the Government of Alberta, this is our opportunity to voice our opinion on Alberta Government s savings policies and infrastructure spending. What we say today will shape what will happen tomorrow! So we encourage all ACA member firms to mobilize their employees and family to fill out this survey. Infrastructure is an investment not an expense! Let your voice be heard TODAY by completing the online survey. Deadline is October 31 st : Thank you for your support! If you have any questions, please do not hesitate to contact ACA at ken.gibson@albertaconstruction.net Costs of Project Cancellations and Volatile Infrastructure Investment The recent cancellation of a major public project is a cost to industry and taxpayers and is symptomatic of a rollercoaster approach to infrastructure investment. ACA expressed these concerns in a letter to all Government MLAs. See the letter here. ACA Form A 2012 now available Form A 2012 is now available through your Local Construction Association (and through ACA for direct members in the greater Edmonton area). A number of Subcontract Conditions have been

9 revised to bring them into better alignment with the CCDC2 contract between owner and prime. The new contract is 5 pages compared to the 4 pages for previous versions. Please destroy any previous versions of Form A. City of Edmonton Performance Management Program comments by September 28 ACA thanks the City of Edmonton for seeking ACA comments on the City s proposed Performance Management Program. ACA received a presentation from the City on the program. See the contractor evaluation form here, and the presentation here. The City intends to have the program evolve and is seeking industry input. Please send any questions or comments you may have by September 28 to ken.gibson@albertaconstruction.net Call for nominations Nominations for the 11 th annual Alberta Construction Magazine Top Projects Awards are being accepted until October 1. Winners will be announced at a special awards gala luncheon on Tuesday, December 4 hosted by Alberta Construction Magazine and Premier Sponsor KPMG. For information about categories, how to nominate projects (all nominations and supporting materials can be entered online) and how to attend the gala luncheon awards ceremony where projects will be announced, visit

10 September 18, 2012 Collaboration Essential to Address Skills Shortage Labour Canada s level of productivity has slipped among OECD nations, from third in 1960, to 11th in 1990 and to 17th in One of the key reasons for this declining productivity is the often-noted and omnipresent skills shortage. It s not that we don t have skilled workers; it s that we don t have the workers with the right blend of skills required in the 21st-century labour market of a globally connected economy. Read more Canada s jobs growth blows past expectations - Construction industry posts loss In August, 34,300 Canadians found work, recouping the previous month s losses, even as the economy remained in the grips of a weak recovery and declining productivity. Most economists had expected an increase of just 10,000 jobs in August, after a drop of more than 30,000 positions in July. However, the construction sector took the biggest hit in August, losing 44,000 jobs, while manufacturing shed 2,700 positions. Read more OECD report shows Canada among R&D laggards Innovation and Technology A drop in research and development investments in advanced economies, including Canada, is reducing their competitiveness against emerging markets where spending on innovation has continued despite economic turbulence, shows an OECD report released today. In its OECD Science, Technology and Industry Outlook report, the Organisation for Economic Cooperation and Development noted that industrialized economies have yet to return to pre-recession R&D levels while emerging markets such as China continue to improve their competitiveness through the advancement of innovation. Read more Public-Private Partnerships National Infrastructure Summit panel splits over value of P3s Whether public-private partnerships are the best for infrastructure projects was one of the issues discussed in a panel presentation at the National Infrastructure Summit last week. Some have suggested the financial risk is too high for taxpayers, while some municipalities see them as the least bad option. Read more CCA News IBC to Hold Conference on Integrated Project Delivery The Institute for BIM in Canada (IBC), together with its constituent organizations, will host its first annual conference November 8-9, 2012 in Toronto. The theme of the conference is Implementing IPD: A Win-Win Solution in Construction, and will feature a great two-day program examining this new project delivery method. Registration will open at the end of September.