Canadian Construction Association Autumn Board Meeting Highlights September 18-19, 2005 Ottawa, ON

Review of CCA Standard Subcontract Form

A CCA Sub-Committee charged with coming up with recommended revisions to CCA 1 – Standard Stipulated Price Subcontract Form required as a result of the expected revisions to CCDC 2 – Stipulated Price Contract Form has completed its work. The publication of the new version of CCA 1 will be coordinated with the release of the new edition of CCDC 2.

CCA 29 – Bidding Guide

In light of the new CCDC 23 ‘A Guide to Calling Bids and Awarding Construction Contracts', the Committee is now considering to replace CCA 29 with two new documents:

•  A new guide dealing exclusively with subcontract bidding and awarding procedures.

•  A new guide dealing exclusively with Post-Award Contract Administration. This may be in the form of a listing of available reference materials under each subject matter.

Priority will be given to the subcontract bidding and awarding procedures.

New Design-Build Team Partnering Agreement

The CCA Standard Practices Committee reviewed the draft of the new Design-Build Team Partnering Agreement prepared by the Canadian Design-Build Institute (CDBI) and will be providing comments back to the CDBI. Since the scope of this document has been expanded to include other team members, e.g. consultants, it will be published as part of the CDBI Practice Manual. Similar to other CDBI documents, the Committee's review of the final draft is primarily to ensure the content is consistent with existing CCA policies.

CCA Approves New Banking Guide

The CCA Board of Directors approved for publication a new CCA Guide Document entitled Banking Guide for the Canadian Construction Industry. The Guide attempts to improve the understanding of the construction industry of the banking/lending community so that construction firms are better prepared in their dealings with commercial lenders. It is also intended to improve the banking/lending community's knowledge of the construction industry. The target date for publication is mid-November. It will be made available on-line free-of-charge to all CCA members via the CCA website.

Discussions with SNC-Lavalin ProFac Proving Successful

CCA has held extensive discussions with SNC-Lavalin ProFac regarding its procurement terms and contract conditions. ProFac has now agreed to alter a number of its procurement practices in response to CCA concerns and to use industry standard CCDC 2 – Stipulated Price Contract for construction contracts it manages on behalf of PWGSC. CCA is continuing to work with ProFac in reducing the number of supplementary conditions that ProFac will require with CCDC 2. While discussions are still underway, CCA is encouraged by the progress to date, which it feels creates a much more balanced and equitable approach.

Agreement Reached with Concrete Ready-Mix Industry

CCA has reached an agreement with the Canadian Ready-Mixed Concrete Association to address the recent decision by many ready-mix concrete suppliers to stop disclosing detailed concrete mix proportions over proprietary concerns. Under the agreement, a new model Concrete Mix Data Submission Form has been developed that provides for the necessary information contractors require without revealing detailed mix proportions. A copy of the model form will be posted on the CCA website for consideration and feedback.

CCA Nearing Success on Tax Treatment of Employer-Provided Vehicles

CCA has proposed changes to the manner in which personal mileage is computed for an employee's use of an employer-provided vehicle where the employee is required to take the vehicle home. Essentially the CCA proposal calls for the value of the taxable personal benefit to be limited to the lesser of the mileage the employee would otherwise have driven to the employer's permanent/fixed place of business or "yard" and the work site to which the employee is driving/reporting.  Recently, officials from the Canada Revenue Agency (CRA) advised that its Trust Accounts Division, which is responsible for the development and review of CRA policy in such areas, has made the CCA proposal part of its own broader proposal which also applies to automobiles as well as non-automobiles alike. There would still appear, however, to be some hurdles to overcome within the CRA. In addition, despite the fact Finance Canada has indicated in response to CCA enquiries that this matter is within the administrative mandate of the CRA, Finance Canada's approval may still be required. While there would appear to be a good deal of support for the proposal, the approval process may take longer than first anticipated.

CCA Hopes to Change Industry's Environmental Image

The CCA Environment Committee is identifying means by which to promote the construction industry as a positive force in the advancement of sustainable development and sound environmental practices. The Committee is producing a CCA promotional pamphlet that will showcase the environmental achievements of the construction industry. It is also contributing short articles in regular CCA communication pieces showcasing select examples of environmental achievements within the industry. The Committee hopes that this form of self-promotion will lead to more interest and desire among all construction firms to achieve excellence in their environmental record.

CCA Annual Conference will feature “LEED for Contractors” Course

The CCA Environment Committee has concluded an arrangement with the Canada Green Building Council (CaGBC) whereby the CCA Annual Conference next March in Hawaii will feature a half-day “LEED for Contractors” course. Course information is available on the on-line Conference registration page of the CCA website. Participants are required to pre-register.

CRA Reviewing Changes to Contract Payment Reporting System

The CCA Finance Committee was apprised of the results of a review of the Contract Payment Reporting System (CPRS) operated by the Canada Revenue Agency (CRA). That review has led to a series of recommendations. They include requiring contractors to report CPRS information on a calendar year basis and to provide copies of information slips to subcontractors. CRA has invited CCA to sit on a Working Group to look at these and other recommended changes.

CCA asked to Examine Foreign Worker Facility

After hearing a presentation by the Program Manager of Construction Recruitment External Workers Services (CREWS) – a non profit association formed by the Greater Toronto Home Builders' Association to facilitate the entry of foreign workers to work in the residential construction sector in the Greater Toronto area, the CCA Construction Exports Committee has asked the CCA Human Resources Committee to investigate the feasibility of CCA establishing a similar arrangement with appropriate federal government agencies (i.e. HRSDC and CIC) to facilitate the entry of foreign workers to work in the ICI sector across Canada.

CCA Submission on the Canada Labour Code

The federal government is currently reviewing Part III of the Canada Labour Code. A Draft CCA Submission was approved by the CCA Human Resources Committee, which essentially makes the case for why the construction industry should be exempt from those provisions.

Review of Standard Federal Construction Contract

After a series of meetings and presentations, the CCA Standard Practices Committee was successful in convincing the Treasury Board Advisory Committee on Contracts – Construction Subcommittee (TBACC-C) to seriously consider proposed CCA revisions in four outstanding areas associated with the new Federal Construction Contract Form. The four areas are indemnification provisions, payment, allowable markups for changes, and insurance conditions. TBACC-C will provide a formal written response to CCA once it has reviewed the matter. It will also provide a new revised draft of all proposed changes to the current Standard Federal Contract for a final review by CCA.

New Standard Practices Bulletin on Cash Security

The CCA Standard Practices Committee has drafted an educational bulletin concerning cash forms of contract performance security. The final edition will be published in November.

Gold Seal Undertaking New Marketing Plan

The CCA National Gold Seal Committee is embarking upon the development of a new Gold Seal marketing strategy. As a first step, CCA has created a new staff position to assist in the marketing effort. Nathalie McBeath is CCA's new Director of Marketing and Business Development whose first and foremost responsibility will be to assist in the development and implementation of a marketing strategy for the Gold Seal Program. She has held senior marketing positions in the private sector.

Next CCA Annual Conference Set for Hawaii

CCA's 88 th Annual Conference will take place at the Hilton Waikoloa Village Resort in Waikoloa, HI on the Big Island of Hawaii, March 12-16, 2006. On-line Conference and Hotel registration is available on the CCA website at www.cca-acc.com .

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City of Winnipeg - Building Permit Requirements - Urgent Update 

WCA has been in continuous contact with the City of Winnipeg and the Department of Labour following the recent Court of Queens Bench decision in favour of the Manitoba Association of Architects and requiring the involvement of an Architect on most building projects in Manitoba.  The effect of this decision was an immediate suspension, by the City, of the issuance of Building Permits for any building projects that are potentially impacted by this decision.

In the past week, the City of Winnipeg has been working to obtain legal advice as to what this decision means. We are now told that the advice they have received is that all buildings over 400 sq.m will require the involvement of an architect – and that includes alterations and renovations.  In the case of renovations or tenant fit-ups, the overall building size is considered - not the size of the renovation itself.  

In the case of a project that is purely service, repair, refit, of electrical, mechanical, or structural only – that does not involve fire separation issues or the like – the City has said it will issue permits without the involvement of an Architect.

In the case of construction projects that have obtained a building permit and where work is currently underway, the City now informs us that up to 35 of these projects will NOW require the involvement of an Architect prior to the issuance of an Occupancy Permit.  The contractors / owners involved in these projects will be contacted shortly.

At the present time, there are approximately 200 projects (stalled) in the Building Permit Application process at the City, that will require the involvement of an Architect prior to the issuance of a Building Permit.  The City Permits Department reports that it is continuing to work with these applications to ensure that all other approvals are being sought so that when the Architects approval is obtained, the Building Permit can be issued.  We are told that the City is bringing additional staff resources into the Permits office and approving overtime to ensure the Department will be in a position to handle this backlog and does not itself contribute to further delays.

As you can appreciate, this is a huge issue to dump on our industry at this critical time, and without any advance warning.  We understand the Association of Professional Engineers and Geoscientist intends to appeal the Court decision, however, that step does not cause the City Permits department to reverse its process and go back to the way it was.   The Minister of Labour has recently stated that the government will be introducing legislation this month to amend the Architects Act or the Building and Mobile Homes Act (Building Code) or both, which will hopefully result in an equitable solution.  In the interim, the industry is faced with significant collateral damage.

New Safety and Health Qualifications to be Required to Protect Workers on Government Construction Projects.

(COR Certification Required)

Effective Jan. 1, 2006, contractors bidding on Manitoba government construction projects will be required to meet workplace safety and health qualification requirements prior to the awarding of contracts, Labour and Immigration Minister Nancy Allan announced today.

"Safe and healthy working environments do not just happen, they require clearly defined policies and procedures, a well-trained and properly-supervised workforce, and a commitment to safety and health by everyone at the workplace," said Allan.  "This new requirement ensures the province will work only with the conscientious members of the construction industry who share our commitment to safety."

"The ability of the employer to ensure workers' and public safety when working on Manitoba's highways, bridges or government facilities is as important as their ability to deliver the projects on budget and on time," said Transportation and Government Services Minister Ron Lemieux. "We are moving to raise awareness of and compliance with safety and health standards in all workplaces, indoors and out."

Under Manitoba's Workplace Safety and Health Act, employers are required to establish safety and health programs to ensure safe and healthy workplaces.  Current provincial tendering for transportation-related construction projects over $250,000 requires contractors to provide the appropriate documentation verifying they are in compliance with the Workplace Safety and Health Act and regulations.

Effective Jan. 1, the same requirement will apply to contractors bidding on government facility construction projects over $250,000 and the limit for transportation-related projects will be reduced to $100,000. Effective Jan. 1, 2007, this limit will also be reduced to $100,000 for government facility construction projects.

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MasterFormat 2004 Seminar

WCA held its first MasterFormat 2004 Seminar at the WCA offices September 28, 2005 and filled the room to capacity. MasterFormat is the specification writing standard for most non-residential building design and construction projects in North America. Corinne Golding RSW, of Smith Carter Architects & Engineers provided a very enlightening presentation on the new edition outlining the newly expanded division structure. The new MasterFormat also introduces a new six digit numbering system. Attendees were receptive and participated actively in all discussions relating to the new format that will soon be here and used within all design specifications in the coming future.

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Profitable Contracting Workshop

WCA held its first Profitable Contracting Workshop October 6, 2005 at the Canad Inn with 26 participants registered. Wayne Newell our instructor arrived from Nova Scotia during our first winter storm but still provided a top notch performance beginning promptly at 8:00 am.

The objective of the Profitable Contracting course was to help contractors and management personnel increase profits and improve cash flows. By understanding the many facets of both operations and financial management, participants will be better equipped to implement cost controls, productivity improvements and timely financial reports.

The National Gold Seal Committee of the Canadian Construction Association has accredited the Profitable Contracting Workshop. Watch for more news on the Gold Seal Program.

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Annual Builders Night Gala

Builders' Night is just around the corner on October 21, 2005 and sales have been brisk. To date tickets sales are over 600. If you haven't received information to register, please call the WCA office at 775-8664. Don't miss out on this fun filled event.

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Winnipeg Construction Association is located at 290 Burnell Street , Winnipeg , MB R3G 2A7

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