SICA Construction Review Spring 2016

Spring 2016

Kelowna Yacht ClubNew Yacht Club adds iconic presence to downtown Kelowna

Maximizing Efficiency in Dispute Resolution: Help Tell Your Story

KaMloops ovERlanDER BRiDgECompleted on time and on budget while still in use

KElowna MEMoRial paRKaDEOn track to open summer 2016

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Table of ContentsA word from SICA COO Bill Everitt

A message from SICA Chair Craig Main

SICA Staff

SICA Board of Directors

0809

1011

2016siCa ExECuTivE CoMMiTTEE

Craig MainChair

Debra Dotschkat Vice Chair

Jason HendersonSecretary/Treasurer

Phil LongPast Chair

Adam ZmudczynskiExecutive Alternate

2016siCa DiRECToRs

Martin DeheerSam Elia

Ryan FairburnDavid Hughes

Matt KormendyTim Krogh

Angela McKerlichShane Mosley

Gavin RasmussenDiana ODareJeff ShecterRoger Smith

Vickie Topping

alTERnaTEs

Josh BergsteinssonCameron Betts Craig Chequis

Jeff HanleyJenny Hutchinson

Chris OwenJohn PowersTom Spatola

Justin Tanquay

Kelowna (Head Office)#104 - 151 Commercial Drive

Kelowna, BC V1X 7W2Tel: (250) 491-7330 Fax: (250) 491-3929

Kamloops#101 - 410 Pearson Place

Kamloops, BC V1S 1J9Tel: (250) 372-3364 Fax: (250) 828-6634

www.sica.bc.ca

SICA Construction Review spring 2016 3

Maximizing Efficiency in Dispute Resolution: Help Tell Your story

34

CCa Report

12

When does an hour bank plan make sense?

New Yacht Club adds iconic presence to downtown Kelowna18 24

Structure Your Business to Maximize the Capital Gains Exemption

23

Building Information Modelling: A powerful tool for design efficiency

20 Innovative Construction Panels: Randy Browne introduces Dragon Board

28

Kelowna Memorial Parkade on track to open in summer, 2016

14

Boring through boundaries: Trenchless construction by Kamloops Augering & Boring Ltd.30

Southern Interior Construction Association Spring 20164

The SICA Construction Review is published by:

DEL Communications Inc.Suite 300, 6 Roslyn RoadWinnipeg, MB R3L 0G5

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Copyright 2016. SICA Construction Review. All rights reserved.

The contents of this publication may not be reproduced by any means, in whole or in part,

without the prior written consentof the publisher.

While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher

in no way guarantees nor warrants the information and is not responsible for errors,

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PRINTED IN CANADA01 | 2016

DJM Contracting ltd.: a versatile partnership in a versatile environment

54

Index to advertisers 66

Small contractors package extensions: What to look for so you dont fall short on property coverage 40

Expanding Horizons: penticton Regional airport is set to take off

42

SICA Membership Listings59

Fine wine and the Wild West: Kamloops newest winery design inspired by the past

47 More fun with SICA: 2015 highlights52

Argus Properties: Part of the community44 Metal Structure Concepts cements solid reputation

with Tri-S Concrete50

A Bridge of Size: Speedy renovation of Kamloops Overlander Bridge36

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Finally, the Southern Interior and most parts of British Columbia are active and building once again. Renewed investment in the public sector and continued confidence from the private side is resulting in SICA members (and the industry, generally) head down, ass up, working.One lesson learned from the recent downturn is the need for more efficiency in our processes

and increased use of technology to get jobs done more effectively and at lower costs. Increased

general construction regulation including new security requirements, hazmat and infections control

knowledge, materials handling, and sensitivity to environmental requirements, means the smart

contractor is spending time in a classroom getting up to speed on the ever-changing rules affecting

how things are built.

In this busy time, we are also seeing construction contract documents take a turn for the worse.

Tied to tight timelines, consultants are copying and pasting previous project terms and clauses into

current project documents. Supplemental general condition clauses are one-sided and onerous.

The intention is understandably to protect owners. However, when transferring all risk to contrac-

tors, the result may be increasing costs to cover those risks, and contractors will move to private

work with fewer conditions.

It could be worse. There could be no investment and no work. Lets consider the challenges noted

above as an opportunity to improve how we do things and make life simpler for all involved.

Best regards,

Bill Everitt, Chief Operating Officer

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SICA Construction Review Spring 2016 9

Its 2016, which marks a new year for SICAs strategic plan. Last October, the board met to create the framework for our next three-year strategic plan. Our

discussions laid the groundwork to help us

understand the status of the industry, give

us a high-level overview of where we saw

the association, and examine our strengths,

weaknesses, opportunities, and threats

facing SICA now and in the near future.

Our board is a diverse group of con-

struction industry stakeholders, includ-

ing general contractors, trade contractors,

manufacturers and suppliers, public own-

ers, lawyers, and architects. Together, we

decided SICA would focus on growing the

awareness of our association, increasing

membership engagement, and advocating

for our members by increasing the scope

and reach of the SICA voice. These princi-

ples will guide the association staff as they

develop their operational plan.

This year, SICA has already started

working on some of our most popular

events, including the 16th Annual Consul-

tant, Contractor, and Owner Workshop be-

ing held on February 11 at the Delta Grand

in Kelowna. Every year, more than 100

representatives come together for an open

and constructive dialogue on pertinent

construction issues. We will be discussing

construction as a community, including a

moderated panel, instructional workshops,

and the annual legal review.

SICA is also continuing with the highly

successful Under 40 and Women in Con-

struction events. The attendance and ex-

citement at both these events continue

to grow, and it is great to see these groups

becoming more involved in the association.

Remember to mark your calendars for

SICAs summer events. Each June, we hold

golf tournaments in Vernon and Kelowna,

the Trap & Skeet event in Kamloops, and

a networking dinner in Penticton. If you

havent been to one of SICAs social events,

this is your chance. Our events are very well-

organized and you will not be disappointed.

I would like to personally thank chief oper-

ating officer Bill Everitt, vice-president of op-

erations Clifford Kshyk, and the entire SICA

staff for the volume of work they put into our

association. They make my job as chair and

the boards job much easier. SICA continues

to be a leading association in our province,

and this is thanks to the operational staffs

exceptional work.

It will be an honour to work with SICAs

volunteers and staff in the coming year. It

is a great pleasure to be involved with an

organization that is devoted to making the

industry better. I look forward to the many

great things our association has in store for

the future. u

a message from siCa Chair Craig Main

250-860-2277

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siCa staff

William E. (Bill) EverittChief Operating Officer

[email protected]

Clifford KshykVP Operations

[email protected]

Aleda StyanKamloops Project

Services [email protected]

Carolyn MannAccounting [email protected]

Janice HaynesKelowna Project

Services [email protected]

Jennifer MarteDirector of [email protected]

Kerry ScottKamloops Planroom Assistant

[email protected]

Sandy GauthierMembership Coordinator - Kelowna

[email protected]

Leanne HendricksonEducation Services Coordinator

[email protected]

Monica BognarMeetings & Events Coordinator

[email protected]

Kelowna (Head Office)

#104-151 Commercial Drive

Kelowna, BC V1X 7W2

Tel: (250) 491-7330

Fax: (250) 491- 3929

Kamloops

#101-1410 Pearson Place

Kamloops, BC V1S 1J9

Tel: (250) 372-3364

Fax: (250) 828-6634

www.sica.bc.ca


siCa Board of Directors

L to R: Back Row Sam Elia, Jeff Hanley, John Powers, Ryan Fairburn, Justin Tanguay, Matt Kormendy, Gavin Rasmussen, Shane Mosley, Cameron Betts, Time Krogh, 2nd Row Angela McKerlich, David Hughes, Jason Henderson, Craig Main, Front Row Martin De Heer, Phil Long, Debra Dotschkat, Tom Spatola, Roger Smith, Diane ODare.

Chair: Craig Main Maddocks Construction Ltd.

past Chair: phil long Maple Reinders, Inc.

vice Chair: Debra Dotschkat Glass Canada Inc.

secretary/Treasurer: Jason Henderson

Houle Electric Limited - Kelowna

alternate: adam Zmudczynski

Kal Tire

gavin Rasmussen K & Cs Construction & Renovations Ltd.

Matt Kormendy Inland Glass and Aluminum Ltd.

Diana oDare BA Dawson Blacktop Kamloops

shane Mosley Sawchuck Developments Co. Ltd.

Tim Krogh TKI Construction

sam Elia Power Vac Services

Roger smith Ken Olson Ltd. (Olson Construction)

Jeff shecter Zap Welding

David Hughes Forward Law LLP

vickie Topping MQN Architects

Martin Deheer Interior Health Authority (IHA)

angela McKerlich Capri Insurance Services Ltd.

Ryan Fairburn Capri Insurance Services Ltd.

Craig Chequis Chapman Mechanical Ltd.

Tom spatola Harris Rebar

John powers Flynn Canada Ltd.

Jeff Hanley Hancon Constructors Ltd.

Chris owen Interior Plumbing & Heating Ltd.

Cameron Betts Betts Electric Ltd.

Jenny Hutchinson Wilson M Beck Insurance Services Inc.

Josh Bergsteinsson GRM Sealants & Coatings Inc.

Justin Tanguay DJM Contracting Ltd.

EXECUTIVE DIRECTORS ALTERNATES

DIRECTORS

Southern Interior Construction Association spring 201612

Canadian Construction association Report

CCA President Michael Atkinson with Prime Minister Justin Trudeau.

PHONE (250) 546-9551 | FAX (250) 546-8900EMAIL [email protected]

CRAIG MAIN2355 Pleasant Valley Road

Box 546, Armstrong, B.C. V0E 1B0

CCa to work with federal contracting agencies on prompt payment regulations

In response to the recommendations

generated at the CCA Industry Summit, the

CCA board passed the following motion:

THAT, CCA work with its partner asso-

ciations, interested stakeholders, and federal

contracting authorities, to educate the fed-

eral government on the importance of prompt

payment and cash flow on federal construc-

tion projects, and work together to resolve any

concerns, which may include the enactment

of federal prompt payment legislation accept-

able to the industry.

The CCA will establish a taskforce to be-

gin discussions with the major federal con-

tracting agencies on industry payment and

cash flow concerns on federal construction

contracts and to seek effective solutions.

CCa working to improve the quality of design documents

The CCA continues to hear concerns

about the quality of design documents

and is currently holding regional work-

shops with its partner associations to raise

awareness of the impact of poor design.

The CCA will record major points, findings,

and recommendations that emerge from

these workshops in a special report, which

it hopes to release at its annual conference

in March.

lean Construction institute of Canada established

Over the past year, the CCA established

the Lean Construction Institute of Canada

(LCI-Canada) as a special committee of

the CCA similar in structure and operation

to the Canadian Design-Build Institute.

This has been done with the support and

acknowledgement of the Lean Construc-

tion Institute in the U.S. In addition, the

CCA is working closely with the Associ-

ated General Contractors (AGC) of Amer-

ica, which runs its own lean construction

education and lean construction certifica-

tion programs. In concert with the CCAs

partner associations, LCI-Canada is cur-

rently conducting Lean Construction 101

seminars across the country.

Federal government and e-procurement

The CCA has been working with De-

fence Construction Canada (DCC) to en-

sure that DCCs new e-procurement sys-

tem meets industry expectations.

national industry ethics course to be unveiled in March

The CCA is working with BuildForce

Canada to develop a national construc-

tion industry ethics course, which will be

unveiled at the CCA Annual Conference in

March. There is interest in making this new

course mandatory for all Gold Seal Certifi-

cation program applicants. u

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Construction of the Kelowna Me-morial Parkade is on schedule to coincide with the opening of the Interior Health Authoritys new Commu-

nity Health and Services Centre in 2016.

The six-storey parkade will offer 566 stalls,

including 139 public parking spots; week-

day parking for 380 Interior Health staff

members; 30 Interior Health 24-7 reserved

parking spots; and parking for a fleet of 17

City of Kelowna vehicles. The new facility

replaces 139 at-grade parking stalls and

provides more than 500 additional public

parking spaces in the citys downtown core.

Located south of the Memorial Arena,

the 40-by-80-metre parkade has a north

entrance and south exit, with two points

for pedestrian access. In addition to park-

ing stalls, the facility includes two floors

of office space on Ellis Street for City of

Kelowna staff. There are four roughed-in

By Lisa Fattori

Kelowna Memorial parkade on track to open in summer 2016

Rendering of the completed Memorial Parkade.

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General ContractorsConstruction Managers

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charging stations for electric vehicles,

bike parking on the lower level for bylaw

staff, and outdoor bike parking for the

public.

Construction of the $15.15-million

project began in August 2015, with site

preparation that included removal of the

existing parking lot and soil densification.

This area has poor soil conditions with

high ground water, which requires de-wa-

tering of the site, says Andrew Ambrozy,

operations manager for Maple Reinders

Incorporated in Kelowna. We have a

dozen pumps running at any given time,

to maintain ground water level for safe

excavation of footings. Once the founda-

tions are complete, we can backfill and

will no longer have to de-water the area.

While pre-loading consolidates mate-

rial 50 to 60 feet down, it doesnt prevent

the liquefaction or movement of soil. Liq-

uefaction happens when the water table

is high and the sand grains are too loose,

says David Mitchell, foundation consul-

tant with Vancouver Pile Driving. With a

big vibration, like an earthquake, this ma-

terial settles, and whatever is on top of it

is going to settle too.

For this reason, site preparation of the

parkade required densification of the soil

using a vibroflot soil stabilization method.

Stone columns were installed to the re-

quired depth and constructed using the

dry bottom feed method. This method

places charges of stone at the tip of the

vibroflot and, by repenetrating each

charge, compaction is achieved. This pro-

cess is repeated as the vibroflot is slowly

extracted and the column is completed.

Soil is compacted, providing the strength

required to build a heavy structure that

could withstand an earthquake.

The stone columns provide stability,

says Mitchell. We went down 10 metres

for this project, but weve seen columns

as deep as 30 metres.

In December, a four-foot foundation

was poured in two applications, for a total

of 1,200 cubic metres of concrete. Pre-

cast concrete beams, columns, and slabs

are being constructed off-site and will be

Concrete pouring in mid-December.

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transported to the Memorial Parkade site,

where they will then be puzzled together.

Due to a tight construction schedule and

limited space for a lay-down area, pre-cast,

rather than pour-in-place, was the preferred

choice for concrete work. Once the pre-cast

forms are installed, the structure will be fin-

ished with a three- to four-inch topping of

concrete.

Were just hitting the winter months now,

so we have to stream and heat our aggre-

gates to between 50 to 60 degrees Celsius,

says Darcy Kuchirka, manager of Okanagan

operations for BURNCO Rock Products Ltd.

When you are dealing with frozen aggre-

gates and a lot of water, everything takes a

lot more time and effort.

The design of the Memorial Parkade con-

siders the aesthetics of the structure and its

tie-in to the surrounding neighbourhood. The

west wall, which faces Kasugai Gardens, will

eventually be covered in ivy to complement

the greenery of the garden and provide visi-

tors with a pleasing view. Staggered and ran-

domized glazing with bright-coloured flash-

ings provide visual interest at the pedestrian

level along the sidewalk. A full-height curtain

wall glazing along the stairwell provides a tall

lantern of light at night and great views over

the city centre, while significantly improving

public safety through full visibility.

The openings in the aluminum clad-

ding allow for full open-air ventilation, some

protection from the elements, a screen for

security, and a growing medium for the

vines, says Collin Crabbe, project architect

for Meiklejohn Architects Inc. in Kelowna.

Installing the lightweight, yet rigid and du-

rable, material outside of the main building

structure provides some aesthetic interest.

Crabbe also says it creates a veil over the

heavy precast concrete structure that will

soon hold 566 vehicles.

Parking garages now provide great

design opportunities that improve on

the traditional ideologies that they have

to be purely functional eyesores in city cen-

tres. u Ground densification.

Harris Rebar is engaged in the fabrication and placing of concrete

reinforcing steel, used in the construction of all types of concrete

structures involving housing, institutional, industrial, commercial

and heavy engineering.

We are the largest reinforcing steel contractor in North America, with

fabrication facilities located throughout Canada and the United States.

Services provided include:

Production of epoxy coated/stainless/galvanized reinforcing steel

Design and installation of concrete post tensioning systems

Supply and installation of wire mesh and concrete accessories

Auto-cad produced detailed placing drawings

Experienced placing supervision and labour

Anchor bolt assemblies

SAFETY IS OUR #1 VALUE

180 Bubna Road, Kelowna, BC V4V 2N4Ph: 250-766-0608 | Fax 250-766-0618 | Email: [email protected]

Serving Southern British Columbia Since 1976

Ph: 250-492-7985 Fax: 250-492-7781 Email: [email protected]

www. inter io r roof ing.com

Longstanding member of SICA and RCABC


An hour bank plan allows employ-ers to provide benefits to employ-ees that would often not other-wise qualify through a group benefits plan.

Enrolling employees that are seasonal or

project-driven, when there will be periods

without work, on an hour bank plan makes

a lot of sense.

Employees receiving benefits through

a group plan must meet participation re-

quirements for the hours worked per week.

If you have an employee that doesnt work

for a week due to the weather, or a job is

completing they can quickly become in-

eligible to participate in a regular group

benefits plan. An hour bank plan allows

employees to deposit into a bank hours

that they worked so that they can with-

draw those hours for coverage when they

are not working.

There is typically a minimum that must

be initially banked, a minimum that must

be maintained while working, and a maxi-

mum cap on an hour bank plan. Benefits

offered usually consist of health and den-

tal, life insurance, accidental death and dis-

memberment, and disability insurance, but

can vary with the provider and the plan.

Employers pay an hourly rate per em-

ployee for the hour bank plan when that

employee is working. Each month, hours

are withdrawn from the plan to cover the

benefits. When an employee is not work-

ing, hours continue to be drawn from the

bank each month. If the hours withdrawn

reach the plans minimum, an employee

can often choose to pay to continue receiv-

ing benefits, usually for up to six months.

In many cases, it makes sense to have

employees that have established hours, in-

cluding hourly workers, on a regular group

plan and employees with fluctuating hours

on an hour bank plan. The plans can work

together cohesively but must be set up

to accommodate the classes within that

workforce.

Hour bank plans are a great tool to pro-

vide employers with flexibility within their

labour force. Benefits help to protect em-

ployees and provide employers with an

advantage to recruit and retain employees.

If you have questions about hour bank plans,

group plans, critical illness insurance, or

other benefits questions, BCCA Employee

Benefits is happy to consult with you.

Find us online at www.bccabenefits.ca,

email [email protected], or call

(800) 665-1077 or (604) 683-7353. u

when does an hour bank plan make sense?

College of the Rockies

For more information: Phone: 250-489-2751 ext. 3243 Toll-free 1-877-489-2687 ext. 3243 email: [email protected]

Building Strong Careers

cotr.ca/trades

Training construction tradespeople today to fill the needs of tomorrow.

Carpentry - Foundation and apprenticeship levels.

Electrical - Foundation and apprenticeship levels.

Timber Framing - Foundation level.

Apprentices are trained to Red Seal Canadian standards.

There is typically a minimum that must be initially banked, a minimum that must be maintained while working, and a maximum cap on an hour bank plan.

From July 2014 to June 2015

MeM

bers

hip T

end

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g A

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Ac

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ing

21,525 pages of plancopies printed.

HIGHLIGHTS10

Public Construction Committee Meetings held

across the southern interior

22networking events

held across the southern interior

3,478 Stat Decs signed in our Kamloops & Kelowna Offices.

551 new projects posted on BidCentral in the southern interior region of BC in the past year

3,714 new projects posted

on BidCentral in province of BC

in the past year

2,313 individuals trained

in our courses

83 companies joined SICA in the past year

398 Courses held in the past year across the southern interior

Cash Advances

Contract Interpretation

Non-Compliant Bids

Growing your business

Payment Issues

Prequalif cation

Risk TransferCancelled Contracts

Second Look on Contracts

Builders Lien

Standard Documents

Ho

ldb

ac

ks

You asked us about...

$325M PLUSValue of southern interior projects on BidCentral

TOTAL ATTENDEESAt SICA hosted events in the past year

783


Todays building projects are typical-ly delivered on a compressed time-line and a limited budget. Archi-tects, engineers, and construction compa-

nies have to use every tool available to pro-

vide themselves with the time and space

to design and build high-quality buildings.

These building have to meet client objec-

tives while also contributing something

special to the fabric of their communities.

Building information modelling (BIM) is

a tool that can help. It enables the entire

design and construction team to collabo-

rate in real time on a digitally based, three-

dimensional facility design. By viewing and

manipulating the 3D model, architects and

their clients can quickly see the results

of changes to the physical and functional

characteristics of spaces. We can see how

hospital departments interact with each

other, and analyze the flow of patients and

health-care providers through each space

critical tools for designing highly efficient

and functional health-care spaces.

Digital design using BIM allows for vi-

Building Information Modelling:

a powerful tool for design efficiency

Interior Heart and Surgical Centre in Kelowna.

Phot

o Cr

edit:

Sunn

y Jho

oty P

hoto

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sualization and imagery, portraying design

intent in a way that the public or our client

can easily recognize. Tools such as virtual

reality and augmented reality continue to

evolve, providing designers with tools to

visually integrate concepts into real-world

settings and explore how their ideas and

designs fit into their surroundings.

For example, nurses and doctors are

able to virtually explore a new surgical

suite for efficiency and workability while

still in the design stage. They can offer

their feedback and input to help refine the

layout long before construction begins.

This helps save time and money later on,

as there is less need to re-engineer spaces

that arent functioning well. It is also more

efficient than planning the spaces out in

actual physical space though this is still

a very valuable method that complements

digital engagement with the design.

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Easy Build Structures pre-engineered 2 x 3 galvanized steel framing system uses an unique slip-fit design that simplifies the installation process with the added strength and durability to withstand our Canadian winters. Whether you are looking for roof-coverage only to protect your fleet or equipment or fully-enclosed garage packages for workspace or storage, Easy Build Structures has the building for you.

Our sales team will work with you to customize your structure package to meet all your requirements. Easy Build building packages come complete with everything you need, ranging from overhead and man doors, windows, insulation options, sheeting and flashing colours, and hardware. Our structure widths range from 10 through 50 with the length being as long as you need.

Take advantage of our full installation services throughout the Lower Mainland, including complimentary on-site consultations to fully design your custom structure. Furthermore, all our building packages are designed as do-it-yourself kits with a step-by-step installation manual.

Our engineer can provide you with stamped and sealed drawings, schedule B and C-B, and site inspections to help assist you with any permitting processes required by your municipality. These services also come with our CSA-A660 certification for pre-engineered steel structures in Canada.

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55-13325 115th Avenue Surrey, BC, V3R 0R8

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Energy efficiency and lean designBuilding information modelling also

helps us analyze the energy performance

of a building, and make adjustments to the

design to create a more efficient facility.

Mechanical and electrical engineers have

access to the design, which helps ensure

their efforts are complementary and avoid

unnecessary duplication.

Architects use the building information

model as a source for information and

data about the building beyond the sole

purpose of design. At any stage during the

design process, a contractor is able to ac-

cess the models information to help quan-

tify materials and monitor project costs.

By quantifying materials, they are able to

minimize waste and sequence construc-

tion and even schedule site access for ve-

hicles and staging all contributors to a

projects overall efficiency.

Building operationA models data enables the design and

construction team to manage building

assets down to the micro level, includ-

ing furnishings and equipment. Once the

building is built and operating, the build-

ing information model can be adapted

to be used as a facilities maintenance or

management model. These models can

be used in conjunction with facilities man-

agement software, allowing the building

operator to maintain HVAC and electrical

equipment by scheduling maintenance

and even replacement. This reduces the

need to repair and replace on demand. It

can also provide the building owner with

detailed information on building materi-

als to help facilitate proper disposal and

recycling during demolition at the end of

a buildings life.

Modularization and pre-fabricationModularization and pre-fabrication

are popular because of the reduced cost

through efficient construction. The ben-

efits of pre-fabrication on easily repeat-

able designs such as apartment buildings

and health-care facilities are huge. Building

these types of design components such

as bathrooms and kitchens in a controlled

environment like a factory is far safer and

more cost-effective. uPh

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Many factors can influence the suc-cess of your business not least of which is the legal structure of the business itself. Using the wrong struc-ture for your situation can have far-reaching tax consequences, so it will also become in-creasingly important to update the structure as your enterprise grows.

Here are some key factors to consider when determining the most appropriate business structure:

Exit planningIts never too early to start thinking about

your exit strategy, and to make sure your company is structured in a way that maxi-mizes tax savings upon its sale. One of the biggest incentives provided by the Income Tax Act is the Capital Gains Exemption (CGE) for Qualified Small Business Corpora-tion (QSBC) shares. For 2015, the CGE limit is $813,6001.

Each individual shareholder of a small business corporation is entitled to claim all or a portion of his or her CGE limit on the sale of shares of the company, provided the shares qualify and subject to other conditions.

To claim this exemption you must sell shares of a private company actively engaged in business in Canada. In addition, all or sub-stantially all of the companys assets must be used in the business at the time of sale. Other tests, such as the two-year holding period test and a two-year asset test, must also be met.

Redundant assetsRedundant assets can be a problem when

attempting to utilize the CGE. Redundant assets can include, but are not limited to, cash, marketable securities, loans receiv-able, and rental properties.

If there are a significant number of re-dundant assets, the shares may not qualify for the CGE, even if the assets are removed from the company before the sale.

You can remove these redundant assets by simply flowing them to the individual shareholders by way of a dividend. Howev-er, this will likely incur significant personal taxes (the highest personal B.C. tax rate on ineligible dividends is approximately 40.61 per cent).

significant business assetsIt is not unusual for companies to hold

significant assets that are used in an ac-tive business such as real estate or major construction equipment. In such situa-tions, it may make sense to hold these as-sets in a separate corporation for several reasons. It may make the business easier to sell, as a purchaser may not want or be able to afford these additional assets. Sec-ondly, an extra layer of creditor protection may be provided should a lawsuit be filed against the operating business.

Family-owned businessesThe benefit of family-owned businesses

is the flexibility of being able to split in-come with family members. Through the use of a trust or via direct share owner-ship, family members 18 years or older can receive dividends from the company, enabling their lowest tax brackets to be ac-

cessed. This may result in significant tax savings for a family every year that the business is operated.

A complication is the potential for hurt feelings among family members when the business is transitioned from one genera-tion to the next. It is imperative a structure be in place that allows the first generation the flexibility to determine who in the sec-ond generation should receive control of the business and who may only receive some benefit from it.

Successful family businesses com-monly use family trusts, which allow for both income splitting and flexibility on the transfer of the business.

In all cases, it is essential you have a serious discussion with your advisor re-garding the structuring of your business. Choosing the right structure to start and evolving it as your business grows will be critical to your long-term success.

Gary Parmar, CPA, CA is a business advisor for the real estate and construction industry with the Kelowna office of MNP LLP, a national accounting, tax, and business consulting firm with 16 offices across B.C. For more information, contact Gary at (250) 979-2577 or [email protected]. u

1 After 2014 the CGE limit is indexed annually.

By Gary Parmar

structure Your Business to Maximize the Capital gains Exemption

Gary Parmar, CPA, CA Business Advisor, Real Estate & Construction, MNP LLP.


By Lisa Fattori

new Yacht Club adds iconic presence to downtown Kelowna

Kelowna Yacht Club waterside Cactus Club Caf on the main floor.

Open for more than a year, the new Kelowna Yacht Club continues to garner enthusiastic accolades and awards for its stunning design and

the-art facility for the clubs 1,500 mem-

bers. The building also provides public ac-

cess through its ground level Cactus Club

Cafe, with a large patio space for a seam-

less transition between public parkland,

waterfront boardwalk, and dining venue.

Funded solely by it members, construc-

tion costs for the new Kelowna Yacht Club

including land purchase came in at just

under $10 million. We set up a capital as-

sessment in preparation for a new building

and purchased the land from the City in

2011, says Mike Terris, past Commodore

of the Kelowna Yacht Club. In 1999, the

City had plans to make the whole area a

park, so we knew we would have to find a

new home. When the seniors centre was

planning to move from their location, we

negotiated with the City to purchase that

property. The first phase of our expan-

sion was to add another 350 moorage

slips over two builds for a total of 1,006

contribution to the citys vibrant down-

town core. Located at the north end of Stu-

art Park, the building is triple the size of the

previous yacht club, providing a state-of-

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Rock Glen Consulting is a geotechnical engineering firm in Okanagan Falls, the heart of the South Okanagan wine country.

[email protected] (250) 497-8290 www.rockglenconsulting.ca

slips in the moorage basin. By expanding

our docks, we were able to almost double

our membership, which increased revenue

from member dues.

Through a competition overseen by the

Architectural Institute of British Columbia,

local architect firms were invited to sub-

mit designs. Yacht Club members voted

on three short-listed submissions with

Meiklejohn Architects Inc. in Kelowna win-

ning the contract.

The competition brief outlined that the

Yacht Club wanted an iconic building that

would be easily recognizable from both the

water and the street, says Stoke Tonne,

project architect. The design had to be

nautical in nature and the ground floor

had to be transparent and open so that the

building wouldnt be too exclusive.

The two-storey design meets all criteria,

while incorporating subtle nautical influ-

ences. Lakeside, both levels of the building

are clearly defined by white panels that are

angled five degrees to suggest the appear-

ance of a boat hull. Both the upper deck and

ground level patios feature folding sliding

glass doors to blend the indoors with the

outdoors in nice weather, and have wood

decking in the ceilings of the overhangs.

White angled steel tubes or V-columns

on reference masts and rigging, but serve

double duty, as they offer better support

With stunning lake views, the Yacht Clubs restaurant patio is the largest in the Okanagan.

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The free-floating, self-supporting spiral staircase in the atrium of the Yacht Club.

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119 MCDONALD DRIVE, NELSON, BC V1L 6B9Phone: (250) 352-6978

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for lateral loads. The urban, street-side of

the building blends with the architecture

of other buildings in the neighbourhood

and features a buff-coloured masonry

block faade to complement the nearby

Kelowna Law Courts.

Lead contracting firm, Sawchuk Devel-

opments, constructed the Kelowna Yacht

Club, with project managers Gord San-

drin and Cody Shantz keeping the proj-

ect on schedule for the fall of 2014 grand

opening. In April 2013, work began on

the footings and formwork and then the

building was constructed using concrete

and structural steel with open web steel

joists.

The 24,100-square-foot building in-

cludes a ground floor, with administra-

tive offices, a teaching classroom, bath-

rooms, and shower facilities for members

and the Cactus Club Cafe. The second

floor offers a private lounge and restau-

rant for Yacht Club members, as well as


Photo CreditS: SawChuk develoPmentS and miChael hintringer PhotograPhy.

JLT Canada

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British Columbia

Contractors for

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Jardine Lloyd Thompson Canada Inc.

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Suite 201

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Tel 604 583 9800

Fax 604 583 5777

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4396 West Saanich Road

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Fax 250 388 9926

Toll Free 888 216 8018

a banquet facility that can be rented by

the public. Interior finishes include the

use of plenty of wood and plank tile floor-

ing. A focal point of the building is a spiral

staircase from the ground floor atrium to

the second level, and a chandelier that is

shaped like a ships wheel. The staircase,

made of structural steel with wood veneer

molded over it, has been likened to a work

of art and showcases detailed, intricate

workmanship.

Right in the centre of the atrium is a

free-floating, self-supporting staircase

that had to be specially engineered, says

Sandrin. This is one of the most outstand-

ing features of the building. The Kelowna

Yacht Club has already been awarded the

Judges Choice Award and the Award of

Excellence at the 2015 SICA Commercial

Building Awards, and has just been nomi-

nated for a gold Tommie Award.

The people of Kelowna can take great

pride in this building. u

Kelowna Yacht Clubs restaurant and members lounge.

INDUSTRIAL - COMMERCIAL

227 Leigh Road, Kamloops, BC V2B 2L7

Brian Henning Bus: 250-376-0221 Email: [email protected] Fax: 250-376-7249

TWIN RIVERPlumbing & Heating

(1985) Co. Ltd.

935 Richter St., Kelowna, BC V1Y 2K2

250-763-5117

Kelowna STEEL FABRICATORS LTDSTRUCTURAL & MISCELLANEOUS STEEL

Jamie Warkentin P: 250-763-5117 F: 250-763-9959 [email protected]

The 24,100-square-foot building includes a ground floor, with administrative offices, a teaching classroom, bathrooms, and shower facilities for members and the Cactus Club Cafe.


D Buzz Group is getting attention for its introduction of Dragon-Board construction panels. Drag-onBoard is one of the new magnesium

oxide (MgO) products on the market, and

the only product with ULC and UL approv-

als for Canada and the United States.

Using MgO for construction projects is

not a new idea; MgO was used in the con-

struction of the Great Wall of China, the

Egyptian pyramids, and, more recently, at

the Beijing Olympics in 2008. However, it

By Samantha Sommerfield

innovative Construction panelsRandy Browne introduces DragonBoard to western Canadian and Pacific Northwest markets

Dragonboard | 165-6260 GRAYBAR ROAD, RICHMOND, BC V6W 1H6 | T: 604-715-5503

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was just recently introduced to the west-

ern Canadian and Pacific Northwest mar-

kets, and Randy Browne is behind those

introductions.

Browne has 27 years of experience in

sales, marketing, and management in the

industry, and has now shifted focus to sell-

ing and managing the DragonBoard prod-

uct.

Until now, DragonBoard was strictly

marketed in the East. Im now getting the

brand and benefits of the product out there

because it is less known here in the West,

says Browne.

DragonBoard is made of magnesium

oxide and magnesium chloride, which are

elements found in seawater. The product is

manufactured at room temperature, limit-

ing energy waste. Each panel is reinforced

with numerous sheets of reinforced fibre

making it high-impact resistance and long

lasting. DragonBoard uses all scrapped

material in the manufacturing process and

is safe for landfills.

The individuals calling me have done

their research. When they look up green

products that are non-toxic and do not

grow fungus, DragonBoard comes up,

says Browne. Theres absolutely no form-

aldehyde and its a non-nutrient product

for biocide, so mould and fungus cant

grow. It also contains 14 times less silica

than common drywall.

Not only does DragonBoard eliminate

the risk of mould and fungus, its also wa-

terproof, weatherproof, and fireproof.

In the last few years weve lost hun-

dreds of homes in the Okanagan Valley

due to fires. Washington and Oregon are

the same, says Browne. A builder could

use DragonBoard for the floors, walls, and

exteriors, and would basically have a fire-

proof house.

Building a complete fireproof home

would be costly, however, utilizing partial

DragonBoard products would still add to

the effectiveness of the final outcome.

The biggest advantage to the contrac-

tor and developer to save 25 to 30 per

cent is substituting DragonBoard floor

panels in place of two-and-a-half-inch

concrete topping for small and mid-rise

projects, says Browne. They can uti-

lize half-inch DragonBoard wall panels in

place of thicker material for fire walls and

mechanical rooms, and result in the same

fire rating and sound effectiveness. The fea-

tures and qualities are exceptional for all

residential, commercial, and institutional

projects large scale and small.

Recognizing the benefits of the product,

Browne would like to work with insurance

companies to develop a program offering

lower insurance costs for those using Drag-

onBoard in their construction.

Browne says between his Calgary and

Vancouver offices, he already has numer-

ous orders and specifications for the end of

January. In 2016, he plans to add to his staff

to assist with customer service, sales, mar-

keting, and distribution, with his ultimate

goal of making DragonBoard a household

name and an industry standard. u

Business InsuranceBusiness InsuranceWhile you are working on your

business, know that you are protected.

Western Financial Group has a wide variety of business insurance products to ensure you have the proper coverage at a competitive price. Our team of business insurance experts have access to multiple markets and custom

insurance programs for your construction operation, small or large. We have specific coverage for contractor bonding, liability, equipment coverage, and

builders risk. Our group benefits and life insurance products are also available to protect you, your employees, and your livelihood.

To get a quote, call us at 1-800-667-2217 or 250-762-2217.

WesternF I N A N C I A L G R O U P


Harry Dickinsons day starts at 7 a.m. and ends at 5 p.m., but when you oversee augering and bor-ing crews across Canada, that timeframe

quickly becomes a flexible one.

I have three crews in Ontario, one in

northern British Columbia, one in Surrey,

and a crew just wrapping up in Saskatch-

ewan, says Dickinson. So I need to be

available at almost any time.

Dickinson is the project co-ordinator at

Kamloops Augering & Boring Ltd. (KAB), a

subcontracting company that provides spe-

cialty construction specifically directional

drilling and boring services for utilities and

crossings in the heavy civil construction and

oil and gas industries. He has been a part of

this family-run business for 15 years.

A SICA member since 2014, KAB was

established in 1976 when owner Monte

Bachand and his two sons, Malcolm and

Richard, took a risk in trenchless construc-

tion.

When Monte originally started, he

was a general contractor but saw an op-

portunity with the trenchless construc-

tion market. There might have not been a

lot demand for it at that time, but he saw

something there and went for it, Dickin-

son says.

KAB has grown from a three-man team

to 30 employees, and is now a part of The

Crossing Company in Nisku, Alta. With

the acquisition, The Crossing Company

can offer various new trenchless construc-

tion methods depending on need, striving

to become a one-stop shop for trenchless.

There might be a little bit more cost in

going trenchless, but there is less social

impact this way because we dont have

to stop traffic to do it, says Dickinson. A

general contractor looks at a job and wants

to dig a trench, but there is usually a reason

By Samantha Sommerfield

Boring through boundaries: Trenchless construction by Kamloops Augering & Boring Ltd.

travelerscanada.ca The Dominion of Canada General Insurance Company, St. Paul Fire and Marine Insurance Company (Canada Branch), and Travelers Insurance Company of Canada are the Canadian licensed insurers known as Travelers Canada.

2015 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. All other registered trademarks are the property of their respective owners. M-17782 New 6-15

Construction projects can be complex.A good construction project manager brings experience, risk management, specialized knowledge and leadership to your team. For your surety needs, Travelers Canada can do the same. With our team, you will be backed by our superior resources, expertise and proven stability. Talk to your broker today.

Travelers Canada: Surety, Business Insurance, Management and Professional Liability, and Personal Insurance.


why you cant dig, so you have to think of

a way to get around that. That is where we

come in.

Its that creative thinking that has KABs

client list growing. Dickinson believes they

are where they are now because of their

team and their efficiencies on jobs.

We have grown with the industry, he

says. As technology changes you adapt.

Its the experience our teams have that has

made us good. How efficient we are now

as opposed to even 20 years ago is notice-

able in our work.

Dickinson says that his crew can do up

to a 120-metre crossing and be within 25

millimetres. This accuracy, because of

skill level and the industrys new technol-

ogy, enhances their productivity.

Its a timing thing. Its not going to

have an impact on the contractors work

flow because we can be so accurate with

our installation, he says. Before we

might have suggested to wait until we

got the casing across because we didnt

know exactly where the casing was go-

ing to be.

As infrastructure ages and fails, the

trenchless industry will continue to grow

to meet this need for new construction.

Once a city cannot expand, it has to

grow vertically and infill, which results in

a higher density population with growing

demands on infrastructure.

This demand and space limitation is

why the trenchless industry is growing.

In the past, 36-inch diameter casing pipe

was Dickinsons bread and butter but now

there is a need to install larger diameter

casings. KAB is leading the way in large di-

ameter culvert installations, even success-

fully completing some 10-feet diameter

culverts.

As things change were always trying

to adapt and incorporate the new and help

our teams be more efficient. u

NHL, the NHL Shield and the word mark NHL Winter Classic are registered trademarks and NHL Green name and logo, NHL Awards name and logo, the NHL Winter Classic logo and NHL Draft name and logo are trademarks of the National Hockey League. NHL 2013. All Rights Reserved.

14 Branches in Western Canada To Serve You

1885 Baron RoadKelowna, BC

Please Call 250-763-3114

A Superior Solution To Your Commercial and Residential Heating/Cooling Needs

Distributed by:

NHL and the NHL Shield are registered trademarks of the National Hockey League. NHL 2014. All Rights Reserved.

Connect with us!

Kelowna#104-151 Commercial Drive Kelowna, BC V1X 7W2T: 250.491-7330F: 250.791.3929www.sica.bc.ca

www.facebook.com/SICAbc

www.linkedin.com/company/southern-interior-construction-association

www.twitter.com/SICAbc

THE ONLY MEMBERSHIP YOU WILL EVER NEED

www.youtube.com/SICA1969

Providing leadership and promoting excellence for the benefit of our industry.

Kamloops#101-1410 Pearson Place Kamloops, BC V1S 1J9T: 250.372.3364F: 250.828.6634

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LEARNING IS POWER!Our Education Services connect you with over 40 online courses, regular safety & equipment

training, skills development courses, management workshops and customized training

programs. SICA: Your One-Stop Shop for Education!

For more information contact: [email protected]

SAVE! All members receive discounts with any of our affinity partners. Join today to save at Petro-Canada, Global Payments, BCCA Employee Benefits, and Mills Basics (just to name a few).

For more information contact [email protected]

FIND YOUR NEXT PROJECT!With access to BidCentral, BCs largest plan-room you will always be able to find and target the projects you want.

Our project services team helps to ensure that your bid process is both efficient and fair.


HAVE SOME FUN!In this industry, sometimes its more about who you know than what you know. With our various events, dinners, and conferences you will meet key players in the local construction industry.


BECOME A PART OF SOMETHING BIGGER!A membership with SICA allows you to have your issues heard on a national, provincial, and municipal level. We work tirelessly to ensure a smooth, fair, and transparent building process.



Resolving a dispute whether through litigation in court, alter-nate dispute resolution or negotiated settlement can seem very much like storytelling. This is because your version of events will be presented as the foundation for the legal argument.

Organizing and preparing your story for presentation in any dis-

pute resolution forum is very important, though it may involve a lot

of time and effort. Lawyers understand this and often spend signifi-

cant time reconstructing what happened in order to best present it

in the framework of a legal argument.

Unfortunately, lawyers are expensive, so if you are dealing with a

lawyer, you will likely want to do so in the most efficient and cost-

effective way possible. Clients who can efficiently work with their

lawyers and bring an organized history of events tend to pay less

in legal fees than those who provide piecemeal or disorganized

information.

Below are some general tips that we have found to increase ef-

ficiencies in cases.

prepare a written summaryThe traditional but often very inefficient way to provide infor-

mation to lawyers is to meet and simply recount the problem and

what happened. This isnt to say that meetings are not effective;

however, early on the information provided can be jumbled and

notes will inevitably fail to record everything.

It can be a more efficient starting point for a client to type up a

detailed chronology describing the history of events. This written

chronology can then be jointly worked on with the lawyer so that it

captures the history and details of the events relevant to the legal

Maximizing Efficiency in Dispute Resolution:

Help Tell Your storyBy David Mckenzie and Renata Germann

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problem. It will also allow the lawyer to efficiently guide the collec-

tion and summarization of important information.

We find that clients often just want to tell the key points and

then get advice. Sometimes that works and is all that is needed.

However, that approach assumes the client is aware of all legal-

ly relevant information, which is often not the case. Legal advice

is typically only as reliable and complete as the information it is

based on. Efficiently communicating details of the dispute by way

of a detailed chronology allows the lawyer to quickly identify the

legally relevant information and provide reliable advice.

Cast of CharactersWe have found, particularly in large complex disputes, a sum-

mary of the key players increases the efficiency of document re-view. Your lawyer did not live through the project. While you might

know who everyone was and their role during a project and can

remember who replaced whom, your lawyer doesnt start out with

that knowledge when reviewing documents.

Collect and organize Your project DocumentsDocumentary evidence is a central feature of most civil cases,

including nearly every construction case, and the persons present-

ing the case must be familiar with relevant documents. Providing

your lawyer with a well-organized document collection at the out-

set can greatly increase the efficiency of document review and re-

duce legal fees. We recommend that you keep electronic records,

save emails and text messages, and organize electronic documents

into subfolders with logical relevant names before providing them

to your lawyer.

an accountingLawyers are not accountants, yet you would be surprised how

much of our time is spent trying to understand how claim amounts

are arrived at. What your claim is made up of is an integral part of

your story and one a decision-maker has to believe. A spreadsheet

showing all invoices, change orders, directives, payments and dis-

puted items, for example, can be an invaluable tool. It is almost

always cheaper for you to prepare such a spreadsheet than to pay

your lawyer to do so.

summaryIn summary, if you can reduce the time your lawyer needs to

spend uncovering and understanding the underlying facts of your

claim, it will be time well spent by you.

David Mckenzie and Renata Germann are lawyers with Jenkins

Marzban Logan LLP and practise in the area of construction law and

commercial litigation. u

When it comes to complex construction issues, it helps to have experience on your side.Jenkins Marzban Logan LLP, serving SICA members since 1994

Mike Demers Tel: 604 895 3158 [email protected]

David Mckenzie Tel: 604 895 3155 [email protected]

Renata Germann Tel: 604 895 3150 [email protected]

900808 Nelson Street Vancouver. BC V6Z 2H2 Tel: 604 681 6564

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By Kelly Gray

Bridge nearing completion in October, 2015.

The Kamloops Overlander Bridge renovation project is characterized by two things every construction client wants to hear on time and on bud-

get. In fact, the $10.4-million project came

in $300,000 below contract and workers

shaved 8.5 hours off the finish date com-

pleting the job ahead of time on Oct. 31,

2015.

The project began April 2015, which

included bridge deck resurfacing, recon-

struction of the west sidewalk, and repav-

ing of the on-ramp approaches. Important

aspects included rehabilitation of the

bridge deck (concrete repairs, deck joint

replacement, new waterproofing mem-

brane, repaving, and improved lighting);

reconstruction of the west sidewalk in-

cluding concrete supports, sidewalk pan-

els, guardrail, and lighting; and repaving of

the north and south approach roadways.

According to Colleen Lepik, transporta-

tion co-ordinator for the City of Kamloops,

the 510-metre Overlander Bridge is a busy

thoroughfare that sees more than 42,000

vehicles cross the Thompson River each

day.

The Overlander Bridge deck was last

resurfaced in 1989, along with concrete

repairs and the addition of a waterproofing

membrane, says Lepik. Maintenance ef-

forts on the pedestrian sidewalk have been

limited to replacement of the sidewalk

panels. In December 2013, a condition

survey of the bridge deck was completed,

Crews proved up to the challenge with the speedy renovation of Kamloops Overlander Bridge

a Bridge of size

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Heaters and tarps help dry fresh concrete on the deck.

and in April 2014, a structural investigation

of the west sidewalk was completed. Both

reports indicated significant wear for both

the bridge deck and the sidewalk.

Safety, traffic, and stakeholder concerns

such as businesses on the North Shore

were addressed, and emergency and

transport organizations were contacted

before the April start date was set.

Speed was essential on this job, be-

cause of the heavy use of the bridge, says

Endri Kociu, project manager with Innova-

tive Civil Construction Inc., an Ontario-

based company with a national scope.

Kociu says the job originally called for a

three-phase construction program. We

were able to limit it to two phases and

saved a lot of time by narrowing the two

traffic lanes in use.

According to Kociu, challenges were

mitigated by Innovatives considerable

experience. However, the amount of traf-

fic that continued to use the bridge caused

some concern. We brought in a local traf-

Ly n x B r a n d F e n c e P r o d u c t s ( 2 0 0 4 ) I n c .

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Phone: 250-765-1468 904 Alsgard StreetFax: 250-765-7797 Kelowna, BC V1X [email protected] Toll Free: 1-800-663-2608

The 510-metre Overlander Bridge is a busy thoroughfare that sees more than

42,000 vehicles cross the Thompson River each day.


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fic control company to keep things mov-

ing and to keep our crews safe while we

worked 24-7 on the job.

High daytime temperatures and large

amounts of rain caused more chal-

lenges. Both took their toll as the project

neared completion. We used heaters to

dry the deck following each storm, and

the daytime heat was really hard on our

guys who had to keep working, says

Kociu. It was hard on the concrete as

well. At times, we had to put ice in the

mix and pour between 3 a.m. and 4 a.m.

because this was the coolest part of the

day.

Another important part of the project

was addressing the need to replace the

joints. The bridge has as much as 240

millimetres of movement, a fact that

creates unique strains on the joints. In-

novative turned to Goodco Z-Tech of

Montreal to design and build the joints

that were delivered in two shipments.

Kociu says that they utilized between

30 and 50 skilled construction workers

and a variety of subtrades. This job was

not an easy one, but it was not a job that

was out of the ordinary for us, he says.

If the rain had held off for a few days at

the end we could have taken even more

time off the projects completion. u

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Lets be honest the process of pur-chasing insurance is not always enjoyable. After the first few expe-riences of going through the documents

with a fine-toothed comb, our minds go

into auto-pilot, and after a quick check of

the documents received in the mail, we

tend to trust what we have is sufficient.

Your insurance renewal is opened you

check the price, do a quick review, and

file the documents in a safe place, hoping

to never have to look at them for another

12 months. This is normal practice, but

its never a good practice. Please use this

quick checklist to help guide you through

your renewal process.

installation floater All contractors

install materials away from the shop. An

installation floater provides coverage for

supplies and materials that will be left at

any one job site. Package policies will in-

clude coverage anywhere from $5,000 to

$50,000. If your package policy does not

provide a high enough limit, the limit can

be increased for an additional premium. If

you find you continuously have to increase

this limit, talk with your broker about pur-

chasing an annual installation floater pol-

icy.

Transit Transit coverage is used to

protect supplies and materials while being

transported from one location to the other.

This coverage often does not match the

installation floater limit. The best practice

is to review this coverage when transport-

ing larger than usual shipments in order to

make sure you do not fall short in coverage.

property elsewhere As soon as a

contractor begins to marshal materials for

installation, there is a risk of loss. Often,

materials are stored at temporary loca-

tions. This is why we recommend covering

property elsewhere as a line item on your

installation floater.

Tools Tools are limited to a maximum

amount per pair, set, or item. This limit can

range anywhere from $500 to $5,000.

This is considered floating coverage pro-

viding coverage on/off premises, includ-

ing extending coverage while being stored

in your vehicle or work trailer. Please pay

special attention to any locked vehicle

warranties. Often there is a warranty that

states coverage only applies if locked in a

secure place.

Tool claims are settled on an actual cash

value basis, so keep those receipts in order

By Jenny (Milliken) Hutchinson, CAIB, CIP

small contractors package extensions: What to look for so you dont fall short on property coverage

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to prove the age of your tools to help avoid

large depreciation calculations in a claim

situation.

Employee tools When an employee

uses their own tools in the course of busi-

ness, they are susceptible to loss from

theft and other perils. They should be

insuring them under their dwelling insur-

ance, but not all individuals carry insurance

and not all homeowners policies will pro-

vide coverage for tools used for business

use. You dont want to have a job grind to

a halt when your employee shows up with-

out tools one day. This coverage can be

added for a reasonable fee.

Contractors equipment Contractors

equipment has a lower rate than tools.

Any item that is above the maximum limit

for tools will be placed into this category.

Depending on the age of your contractors

equipment, it may qualify for replacement

cost. Some polices will provide replace-

ment cost coverage for equipment five

years old and newer, and some will limit it

to three years. It is always best practice to

review these limits to avoid over-paying if

you are going to be penalized by a depre-

ciation calculation.

I recommend looking at the Ritchie

Bros. Auctioneers site to see how much

it would cost to replace a similar piece of

equipment of like, kind, and quality to de-

termine the current value of such items.

Contractors equipment

rental reimbursement This extension

is only provided on some package poli-

cies. If you find yourself in a claim situa-

tion where you need to rent replacement

equipment, we recommend this coverage.

This may or may not be included in your

current policy. Please review this with

your broker.

Rental equipment All contractors rent

equipment from time to time. The dam-

age waiver charged by the rental company

typically costs more than if you were to

add rented equipment coverage to your

own policy. Often proof of insurance is

sufficient to waive the physical damage re-

quirement of the lease agreement.

There are several package policies with

various carriers. The highlighted items list-

ed above are only a brief summary of some

of the coverages available.

Do not hesitate to contact wilson M.

Beck insurance for all your construction

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Penticton, B.C. is a growing city and

so too is its airport. The current air trans-

port facility sees more than 80,000 pas-

sengers each year. With more arrivals and

departures expected, upgrades have been

a priority. Towards this end, the Greyback

Construction team has been hard at work

on a new 110-seat holding area for passen-

gers awaiting flights.

The new building is a 176-square-metre

improvement over the old structure, which

was just two trailers offering seats to 40

By Kelly Gray

Expanding Horizons With its new holding room well under way, the Penticton Regional Airport is set to take off with greater comfort for a growing base of passengers

Rendering of the passenger holding area at the Penticton Regional Airport, scheduled for completion in February 2016.

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waiting passengers. According to Doug

Walter, project architect with Victoria-

based Number TEN Architectural Group,

the new facility will give more room to pas-

sengers and give airlines the ability to in-

crease loads out of the Okanagan city.

We were challenged by the fact that

the airport had to be in continual operation

during the work, says Walter. This meant

we needed to keep the old holding area

open while we constructed the pieces for

the new structure. He says they accom-

plished this by building two sections and

then joined them together after decommis-

sioning the old room.

Walter says they faced other challenges

as well. For instance, the general contrac-

tor, Greyback Construction, had its crew

of 20 trades and workers labour through

the night to ensure flights were not inter-

rupted. There are also a lot of specifics to

working in an airport setting that is differ-

ent from other projects, says Walter. All

construction objects had to be secured and

prevented from travelling onto the field. As

well, each morning before 4:30 a.m. the

contractor had to ensure everything was

cleaned up and the site was secured.

According to Walter, the job itself was

not big. When complete, it will be about

the size of an average house. It was con-

structed on grade and with pretty conven-

tional equipment. Our challenge as de-

signers was to create a structure that was

a small addition to a large building. This

meant we had to pay attention to the ex-

isting design attributes. What we did was

play with the building expression and come

up with a structure that is both interesting

and contemporary.

To do this, Number TEN used vertical

wood siding and horizontal metal cladding

similar to existing materials. Glazing on the

job is expansive and metal cladding with

dimples allows for curves in an unusual

approach that creates more visual appeal.

Horizontal expression is enhanced by us-

ing silicone butt joints on the glazing verti-

cals, he says, suggesting there is a hint of

art deco in the design.

With a long list of participants that in-

cludes local companies such as Greyback

Construction, Our Glass & Aluminum Ltd.,

Combined Mechanical Contractors Ltd.,

and Houle Electric, the project is expected

to finish in February 2016. When its com-

plete, residents of both Penticton and the

surrounding areas can expect to find more

comfort and capability from their local air

hub. u

Interior rendering of the passenger holding area.

Long-term business success in the construction industry requires a strong foundation. But when youre busy building, managing your cash flow, account receivables, profitability and risk at the same time can be difficult. It takes industry-specific insight and customized business strategies that consider all of your business needs, from streamlining operations and identifying trends to effectively managing cash flow, suppliers and tax planning. Gary Parmar

SICA Construction Review Spring 2016

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Transcript of SICA Construction Review Spring 2016