Happy New Year

2005

Workplace Safety & Health Program for Contractors 

City of Winnipeg, Corporate Finance, Material Management Division

Since January 1, 2005, the City of Winnipeg has implemented a requirement for all contractors bidding on any bid opportunity where the value is estimated to exceed $250,000 or considered high risk by the owner, in this case the City of Winnipeg, to submit evidence of an acceptable Workplace Safety and Health Program (WSHP) that meets or exceeds all elements required of a safety program in Section 7.4(5) of the Workplace Safety and Health Act (WSHA). Eventually, as the City develops and gains experience with this process, a proof of an acceptable WSHP will apply to all contracts issued by the City that have contractor's employees working at City job sites.

This requirement for contractors to have an acceptable WSHP in order to bid certain opportunities from the City of Winnipeg and other owners (listed at the end of this text) comes in light of amendments made to Manitoba's WSHA on August 9, 2002. The amendments which included new definitions of people at a workplace and new responsibilities can be found in the Workplace Safety and Health Act, particularly in Section 4 and 7 for owners and contractors. In compliance with the changes to the WSHA, which stipulates that all employers develop a process for the evaluation and selection of contractors or self-employed persons that monitors their safety performance, the City of Winnipeg has established a criteria to evaluate, select and monitor contractors working for the City as a means of establishing due diligence.

Put into practice, bidders who fall under the current criteria for City of Winnipeg opportunities will now be required upon request by the City to submit within three business days an independently verified proof of a WSHP that meets Section 7.4(5) of the WSHA. Bidders who are unable to meet these standards will not be awarded a contract.

Contractors can also prequalify once and for up to three years from the evaluation date or the expiry date of their Certificate of Recognition (COR) Certification by submitting evidence of an appropriate WSHP to the City prior to submitting any bid. This requirement can be met by providing an acceptable COR Certification number or a report/letter from an independent consultant satisfactory to the City. Prequalified contractors may still be asked to provide a job specific Safe Work Plan.

The City plans to use a Safe Work Plan specific to the job site and prepared by the contractor to monitor their safety performance. The City will be phasing in this new process to allow preparation time for contractors to meet the Workplace Safety and Health Act's stipulations of an acceptable Workplace Safety and Health program.

The following is a list of known ‘owners' compiled by the Manitoba Construction Safety Association, that are presently requesting or in the process of working toward requesting COR certification and/or equivalent to bid:

City of Winnipeg; Winnipeg Regional Health Authority; University of Manitoba; Shell; Esso; Nixon Chemicals; Simplot; R.C.M.P; Transportation & Government Services; M.A.S.B.O; M.A.S.T; Public Works & Government Services Canada; Winnipeg School Division; Winnipeg Floodway Agreement; Health Sciences Centre.

This information has been referenced through the City of Winnipeg Corporate Finance, Material Management Division. More detailed information is available on the City of Winnipeg website at: www.winnipeg.ca/matmgt/safety.

The above information has also been verified with the Manitoba Construction Safety Association (MCSA). Information on the COR program is available through the MCSA at: www.constructionsafety.ca.

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New Planning & Development Fees Bylaw Info Session & Highlights

The first of two separate seminars regarding the New Fees Bylaw #166/2004 for calculating a Commercial building permit was held at the WCA building at 290 Burnell Street on January 17, 2005. Twenty-two members of the association and construction industry attended the session hosted by WCA with presenters from the City of Winnipeg's Planning, Property and Development Department.

As was detailed in the session, starting February 1, 2005, building permits will no longer be calculated based on the declared value of the building but will instead be based on its “total building area” as defined in the fees bylaw to include the area of above-grade and below-grade floor levels and the building's classification. From the City's point of view, this new basis for calculation is more consistent with other reporting metropolitan areas and will provide a more accurate portrayal of this type of construction activity in Winnipeg.

The next info session is scheduled for January 27, 2005, again at the Winnipeg Construction Association. Those interested in attending are required to register in advance as space is limited.

For more information or to register:

New Planning & Development Fees Bylaw Session

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The 16th Annual Manitoba Construction Conference

Education: Safety Health Environment & Construction Skills

February 1 & 2, 2005, at the Winnipeg Convention Centre, co-hosted by the construction industry-funded safety programs administered through your Winnipeg Construction Association and the Manitoba Heavy Construction Association.

The Manitoba Construction Conference is the second largest safety health environment conference in Canada. For an idea of its size, this year's conference now includes the largest Hall A and will occupy all three floors of the Winnipeg Convention Centre. The 2005 conference is expected to attract over 1200 registrants in the training sessions and more than 50 exhibitors for the trade show. The two day conference offers opportunities for attendees to take in full and half day workshops by trained instructors and new courses are being offered this year along with certificates of training for participants, interactive demonstrations, trade show exhibits with major prize awards and even free hearing testing. It's a one stop shop for safety and health information and education.

The registration deadline for the Manitoba Construction Conference is January 26, 2005. To register or for more information regarding the conference, please visit their website:  www.constructionconference.ca

or follow the link from the:            

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Labour Force Survey for 2004

Statistics Canada

Statistics Canada's Labour Force Survey for 2004 reports another strong year for construction but continued weakness in manufacturing. Construction employment grew by 6.3% in 2004, continuing on the strength of the past several years which is attributed to low interest rates, high activity in housing starts and building permits across the nation.

On the other hand, employment in the manufacturing sector was down 1.2% for the year reflecting the significant hit the industry took in the second half of last year. A higher Canadian dollar and increases in the price of crude oil and other raw material inputs are being held responsible for manufacturers' poor employment rate. Exports have also fallen short as the demand from foreign countries for fabricated products has tapered off leaving the sector 4.3% below its most recent peak attained towards the end of 2002.

For all sectors, job growth rates were posted above the national average of 1.4% in most provinces. Manitoba, Ontario and Saskatchewan all remained consistent with a +1.5% growth rate, sneaking in slightly above the national average. Nova Scotia and British Columbia tied with a posted growth rate of +1.9% in 2004 for which the construction industry in B.C. was described as a pillar of job strength for that province last year. The most employment growth was reported in New Brunswick (+3.2%), Newfoundland and Labrador (+2.6%) and Prince Edward Island (+2.1%). Only Alberta (+0.9%) and Quebec (+1.0%) were below the national average for job growth rate in 2004.

Click here, for the full Labour Force Survey.

Rates for Business, Department of Finance Canada

The automobile expense deduction limits and the prescribed rates for the automobile operating expense benefit that apply for 2005 have on some issues remained unchanged from those applied last year. Remaining the same as in 2004 is the ceiling rate of $30,000 (plus applicable federal and provincial sales taxes) on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes for purchases after 2004. Also, for leases entered into after 2004, the limit on deductible leasing costs remains at $800 per month (plus applicable federal and provincial sales taxes). Two restrictions ensure the level of deductions for leased and purchased vehicles remains consistent; the first is the above limit as described and the second is a separate restriction that prorates the deductible lease costs where the value of the vehicle exceeds the capital cost ceiling limit. To reflect the reasonable cost of financing a vehicle for business purposes, a maximum limit of $300 per month has been placed on the allowable interest deduction rate for loans related to vehicles acquired after 2004.

Tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes have had their deduction limit increased by 3 cents to 45 cents/km for the first 5,000 kilometres driven and to 39 cents for each additional kilometre. The tax-exempt allowance in the Yukon Territory, Northwest Territories and Nunavut will rise by 3 cents to 49 cents for the first 5,000 kilometres driven and to 43 cents for each extra kilometre. These allowance amounts are supposed to reflect the key cost components of owning and operating a vehicle such as depreciation, financing, insurance, and operating costs for maintenance and fuel.

The taxable benefit for the general prescribed rate used in relation to the personal portion of automobile operating expenses paid by employers will increase by 3 cents to 20 cents/km. The prescribed rate for taxpayers employed principally in selling or leasing vehicles increased by 3 cents to 17 cents/km. Calculated separately and included in the employee's income is the additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge). The costs of operating an automobile are reflected in the amount of the benefit.

These rates and limits are reviewed annually by the Government of Canada. Planned changes, such as these originally announced by the federal government's Department of Finance on December 17, 2004, are made public prior to the end of each calendar year before the start of the year for which they apply.

More information on this topic and other related inquiries can be accessed through the Canada Revenue Agency website:

Tax Information and Services for Businesses

or

to make a direct inquiry, contact either David Gamble at the Public Affairs and Operations Division in Ottawa, (613) 996-8080 or Pat Breton, Press Secretary, Office of the Minister of Finance at (613) 996-7861.

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Building Permits for November 2004

Statistics Canada

Building permit values in November reached their second highest national level on record following strong gains in the non-residential sector and continued growth in the residential sector.

Contractors were issued permits worth $1.85 billion in the non-residential sector, a 20.8% increase from October and the sector's third consecutive monthly gain. Strong construction gains for institutional buildings and also but to a lesser extent by gains in the industrial and commercial sectors accounted for the continued upward movement.

The year-to-date value of building permits totalled $50.5 billion from January to November 2004, up 9% from the same period in 2003. Overall, the increased result was due to the 15.2% advance in residential construction intentions while the non-residential sector posted a decrease by 1.3%. Nevertheless, the cumulative value for building permits in 2004, once calculated for the year, is sure to surpass the record of $50.8 billion set in 2003.

Nationally, non-residential permits were up after three monthly declines totalling $561 million in November 2004, up 86.3% from the previous month. Education, medical, and social service buildings also posted large increases last November, the highest value since July 2003. The industrial sector recorded an advance of 13.8% in November to $396 million, its third double digit increase in a row, mostly related to projects in the utility and transportation category. Commercial permit values were up 1.3% to $896 million in November; the rise in construction intentions for warehouses was offset by the declines in permits for laboratories, hotels and restaurants in this category. Despite the rise in the Canadian dollar and high input prices causing a momentum slow down for manufacturers, retail stores recorded a steady advance in consumer spending since the beginning of 2004.

On a cumulative basis, the value of building permits in the commercial sector was up 10% for 2004 from 2003. Industrial permits declined 4.2% while intentions in the institutional sector were down 16.8%.

In Winnipeg, the value of building permit intentions increased by 5% from October to November 2004, with a value of $55.9 million in November. The cumulative value for building permits issued in 2004 totalled $673.3 million, up 6.3% from January to November 2003.

In Manitoba, the total value of building permits in November 2004 showed an increase of 7.8% from the previous month, with a total of $92.1 million in November alone. The cumulative value for Manitoba from January to November 2004 was up 7.4% from the previous year, with a total value of $1,056.2 million posted in 2004. The non-residential sector in Manitoba showed a slight increase of 0.9% in November from October 2004. The total non-residential permit value for November was $33.9 million. The cumulative total for Manitoba's non-residential permit value up to November 2004 was down 14.5% from 2003. Non-residential building permits for Manitoba had a total cumulative value of $434.7 million from January to November 2004.

The full report for Building Permits, November 2004 was issued by StatCan on January 10, 2004.

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Edited by Jackie Petrus, WCA Construction News Reporter.

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Copyright of Winnipeg Construction Association © 2005.

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