News
News and information from and for Ontario’s construction industry
The Link2Build group publishes news and information about the Ontario construction industry daily. Check here for the latest in trends, developments and insight from a wide variety of contributors, and visit regularly for updated information.
MoL blitzes to focus on musculoskeletal disorders and PPE use
The Ministry of Labour has announced a series of workplace safety blitzes aimed at all sectors—and in particular at workers in the construction sector.
Beginning October 1, and through December 27, inspectors will conduct focused inspections for practices that could lead to musculoskeletal disorders and respirator hazards. Construction will be one sector particularly targeted for these site visits.
According to statistics from the Workplace Safety and Insurance Board, musculoskeletal disorders are the most-reported lost-time injury. In 2017, workers reported more than 19,000 claims, and 462,000 lost days of work—or approximately one-third of all accepted lost-time claims at the WSIB.
Starting in January of next year and through to mid-March, inspectors will target personal protective equipment. Specifically, they will look for the lack and misuse of personal protective equipment such as foot, eye, hearing and respiratory protection devices.
A similar inspection blitz in 2017 resulted in nearly 7,500 orders issued for lack of personal protective equipment on projects. This was the second highest violation in construction workplaces for 2017.
By law, personal protective equipment should be provided to workers wherever there are health or safety risks that cannot be adequately controlled for in other ways. Personal protective equipment can include: respiratory protection devices, hearing protectors, skin protection, high-visibility clothing, face shields and eye protection.
Inspectors will focus on checking that appropriate personal protective equipment is being supplied and worn.
WSIB to eliminate unfunded liability charge
Labour Minister Monte McNaughton announced on September 24 that the Workplace Safety and Insurance Board (WSIB) will eliminate its unfunded liability charge beginning January 2020. The change is expected to reduce the overall cost of insurance premiums to Ontario businesses by $607 million.
"This is good news for employers and employees across the province," said McNaughton. "This money will lead to investments in new jobs, technology and health and safety programs."
The news comes on the cusp of the WSIB’s annual general meeting, and an expected announcement of employer premium rates under the new rate framework system.
Last September, the board announced that it had retired its unfunded liability, which ballooned to as high as $14.2 billion in 2011. Since that time, the board took aggressive measures—mandated by the provincial government—to eliminate its operating deficit. It did so nearly 10 years ahead of its mandated schedule. In so doing, the WSIB was able to reduce employer premiums by an average of 30 percent for 2019.
The unfunded liability charge—also known as the Past Claims Cost—has since 2010 been one of four pillars on which employer premiums were set, and the greatest contributor to retiring the board’s operating deficit. Other premium components included claims costs, gain or loss components, and WSIB administration expenses.
In 2019, the PCC represented approximately 13 percent of employers’ total average premium rates of $1.65. The PCC was significantly reduced for 2019 premium rates, and will be eliminated for the 2020 premiums. Doing so will allow the WSIB to reduce employer premiums for the fourth year in a row.
"Today’s announcement marks a significant achievement,” said Ian Cunningham, president and COO of the Council of Ontario Construction Associations. “The WSIB’s unfunded liability served as a red flag to investors looking for a place to build office towers, commercial facilities, factories and warehouses and create jobs, warning them of the burden of future increased taxes."
Minister McNaughton made the announcement at a job site operated by Eastern Construction, which has pledged to give WSIB premium reductions back to employees. Eastern's 130 employees each received a cheque worth on average $600 from their employer last year.
"A good safety record saves lives and money," said Bryan Arnold, president and CEO of the construction firm. "So we want to do everything we can to encourage our employees to keep our sites safe. This was a common-sense move for us."
Six Figures, No Suits
A new documentary series takes viewers behind the scenes at massive excavation and drilling projects in Alabama, Wisconsin and Toronto.
If you haven’t seen “Six Figures, No Suits”, you’ll want to take a look. The three-part documentary series takes a look at three large North American drilling projects (including Mirvish Village in Toronto). It takes viewers behind the scenes with detailed interviews with site staff to experience life working with heavy equipment on massive construction projects.
The series is produced by the Construction Channel, a 24-hour construction media network that focuses on construction industry news, markets and materials, stories and people. The group’s mission is to provide a new way for those outside the industry to see the complex inner workings of this industry.
Episode 1 of “Six Figures, No Suits” takes viewers to Auburn, Alabama where crews are deploying drilled shafts technologies to create deep foundations for a condo building. The episode looks at the advances in shaft technology in the past 150 years, and demonstrates how a four-foot wide auger uses more than 100,000 ft lbs of torque to drill shafts up to 200 feet deep.
Episode 2 travels to Wisconsin where crews are stabilizing the Prairie Du Sac Dam. The crew is installing nearly 1,000 micropiles to save the dam from catastrophic failure due to rotting wood timber.
In Episode 3, the crew is onsite at Mirvish Village in Toronto. Construction teams are drilling deep holes to shore up the walls in a huge excavation project.
“Six Figure, No Suits” was produced by the Construction Channel in conjunction with the Association of Drilled Shaft Contractors (ADSC) and the International Association of Foundation Drilling (IAFD) as a way of raising awareness about the variety of careers available to young workers in the foundation drilling industry. Since its release, “Six Figures, No Suits” has won several awards, including the Grand Prize at the 2019 New Media Film Festival, Best Web Series at the 2019 Olympus Film Festival, and the Best TV Pilot at the 2019 United States Film Festival.
IO releases 2019 P3 Market Update
The latest update from Infrastructure Ontario (IO) on the size and scope of the province’s market for public-private partnerships (P3s) reveals more than $65 billion worth of projects planned and underway.
Infrastructure Minister Laurie Scott made the announcement earlier this month, calling the funding commitment the largest in the province’s history.
"Our government has revealed a robust and diverse pipeline of projects that will improve, repair and build Ontario's infrastructure," said Scott. "Infrastructure is the backbone of our communities and these investments are critical to the future economic strength of this province. Our P3 model is recognized around the world for delivering projects on time and on budget and we look forward to working with new local and international partners to complete this historic pipeline of public infrastructure."
The 2019 P3 Market Update lists 32 projects at various stages of planning and construction. Ten are in procurement; the remainder are at the pre-transaction stage. Some, such as the GTHA transit projects—including the Ontario Line subway, GO Transit expansion projects, the Scarborough Subway Extension (an extension of the TTC Line 2), the Yonge North Subway Extension (an extension of the TTC Line 1) and the westward extension of the Eglinton Crosstown LRT—are already well understood.
Others, such as those in the health and justice sector, which IO says will be a major focus going forward, are being developed over time.
In total, the market update lists a total of 32 P3 projects including: 13 civil (such as transit, subways, highways), 16 healthcare and three community safety projects. A summary list of those projects appears below.
"Infrastructure Ontario is pleased to see the 2019 P3 Market Update released to our industry partners, so they can plan and dedicate the appropriate resources to future projects," said IO president and CEO Ehren Cory. "Providing more information, on a consistent basis, to our prospective partners will promote stability and transparency in Ontario's P3 market and ensure we remain global P3 leaders. We look forward to delivering the critical infrastructure projects on the 2019 P3 Market Update on behalf of the government."
Earlier this year, the government announced new measures to attract more interest from international firms who are looking to participate in Ontario's P3 market. IO hopes that broadening the procurement process to more bidders will increase competition, drive innovation and deliver optimal value for public funds.
The agency boasts an international reputation for delivering P3 projects on budget (95 percent) and on schedule (69 percent). Both metrics are considered to be significantly above industry standards.
Projects in pre-procurement
Ontario Line Subway
RFQ expected: Spring 2020
RFP expected: Summer/Fall 2020
Estimated project value: > $10 billion
Line 2 East Extension (Scarborough) Subway
RFQ expected: Spring 2021
RFP expected: Summer/Fall 2021
Estimated project value: > $5 billion
Line 1 Extension (Yonge Street North) Subway
RFQ expected: Fall 2021
RFP expected: Spring 2022
Estimated project value: > $5 billion
Eglinton Crosstown LRT – West Extension
RFQ expected: TBD
RFP expected: TBD
Estimated project value: > $4 billion
GO Expansion: Union Station Upgrade – Platform Expansion
RFQ expected: Fall 2019
RFP expected: TBD
Estimated project value: $200 million – $499 million
Kingston General Hospital
RFQ expected: Spring 2020
RFP expected: Summer/Fall 2020
Estimated project value: $500 million – $1 billion
Lakeridge Health – Bowmanville Redevelopment
RFQ expected: Summer 2020
RFP expected: Winter 2021
Estimated project value: < $200 million
Trillium Health Partners Broader Redevelopment – Queensway Health Centre
RFQ expected: Fall 2020
RFP expected: Spring 2021
Estimated project value: $500 million – $1 billion
Niagara Falls Hospital
RFQ expected: Winter 2021
RFP expected: Summer 2021
Estimated project value: $500 million – $1 billion
Hamilton Health Sciences – West Lincoln
RFQ expected: Winter 2021
RFP expected: Spring 2021
Estimated project value: < $200 million
Trillium Health Partners Broader Redevelopment – Mississauga Hospital Site
RFQ expected: Spring 2021
RFP expected: Fall 2021
Estimated project value: > $2 billion
Centre for Addiction and Mental Health – Phase 1D Redevelopment
RFQ expected: Summer 2021
RFP expected: Winter 2022
Estimated project value: $500 million – $1 billion
The Ottawa Hospital – Civic Redevelopment
RFQ expected: Winter 2022
RFP expected: Summer 2022
Estimated project value: > $2 billion
North York General Hospital
RFQ expected: Spring 2023
RFP expected: Fall 2023
Estimated project value: $500 million – $1 billion
William Osler Health System – Peel Memorial
RFQ expected: Spring 2023
RFP expected: Summer 2023
Estimated project value: < $200 million
Weeneebayko Area Health Authority
RFQ expected: Summer 2023
RFP expected: Winter 2024
Estimated project value: $200 million – $499 million
Hamilton Health Sciences – Hamilton Redevelopment
RFQ expected: Fall 2023
RFP expected: Spring 2024
Estimated project value: $500 million – $1 billion
Windsor Regional Hospital
RFQ expected: > 5 years
RFP expected: > 5 years
Estimated project value: > $1 billion
The Hospital for Sick Children
RFQ expected: > 5 years
RFP expected: > 5 years
Estimated project value: > $2 billion
Lakeridge Health – Broader Redevelopment
RFQ expected: > 5 years
RFP expected: > 5 years
Estimated project value: TBD
Scarborough Health Network Broader Redevelopment
RFQ expected: > 5 years
RFP expected: > 5 years
Estimated project value: TBD
Ottawa Correctional Complex
RFQ expected: TBD
RFP expected: TBD
Estimated project value: TBD
Projects in active procurement
Hamilton LRT
Estimated project value: > $1 billion
GO Expansion: Lakeshore East – Central Corridor
Estimated project value: $200 million – $499 million
GO Expansion: Milton Corridor Upgrades
Estimated project value: $100 million – $199 million
GO Expansion: Lakeshore West Corridor
Estimated project value: $500 million – $1 billion
Hurontario LRT
Estimated project value: > $2 billion
Halton Region Consolidated Courthouse
Estimated project value: $200 million – $499 million
GO Expansion: OnCorr
Estimated project value: > $10 billion
QEW Credit River Bridge
Estimated project value: $200 million – $499 million
GO Expansion: Lakeshore East – West Corridor
Estimated project value: $200 million – $499 million
Thunder Bay Correctional Complex
Estimated project value: $200 million – $499 million
Projects in planning
The government has also announced several projects that are early in the planning process. Details including delivery model, timing and scope are still being determined.
Health Projects
- Quinte Healthcare Corporation – Prince Edward County (Picton)
- Stevenson Memorial Hospital (Alliston)
- Collingwood General and Marine (Collingwood)
- Hotel Dieu Shaver (St Catharines)
- Lake of the Woods District Hospital (Kenora)
- Muskoka Algonquin Healthcare (Bracebridge and Huntsville)
Children’s Treatment Centres
- Grandview Children’s Treatment Centre (Ajax)
- Ottawa Children’s Treatment Centre (Ottawa)
Subway
- Early and Enabling Works for Subway Program
- Line 4 Extension (Sheppard East) Subway
Highways
- Garden City Skyway
CCA outlines federal election strategy
The association hopes to bring attention to four critical issues affecting contractors across the country through a new website and an outreach effort to candidates and Members of Parliament.
The federal election is only a few weeks away. With that in mind, the Canadian Construction Association (CCA) is encouraging its members to raise attention to what the national organization says are the four most pressing issues facing our industry: investor confidence, innovation, workforce and infrastructure.
CCA is inviting industry organizations to visit its new website, construction4cdns.ca, to learn more about these key issues, and to write letters to their Members of Parliament asking for their support. The association will broaden the scope of its letters campaign later in the summer, once all the candidates for each riding are known.
CCA president Mary van Buren called the plan the association’s boldest foray into federal politics.
“It is part of our delivery strategy to unite the industry on national issues that matter,” she said. “Part of that is increasing our visibility with our government, engaging with our members and meeting with the government.”
The issues
On investor confidence, CCA is urging the federal government to remove any further regulatory delays to the Trans Mountain expansion project. According to the association, these delays—combined with the imposition of the federal carbon pricing program and many of the proposed changes to environmental legislation—have eroded investor confidence in Canada. Additionally, a lower American corporate tax rate and less project risk, combined with the increased costs of doing business in Canada, make the U.S. more attractive for business investment.
The association is calling for the government to remove any regulatory challenges to the pipeline’s construction. Any further interruption may impede investment, employment, innovation and technology development, it says.
Furthermore, CCA is asking for the federal government to offer certain exemptions to the heavy construction sector. Establishing rebates and tax credits to companies who adopt newer “green” technologies, applying carbon tax at the pump prior to the provincial, excise and GST taxes, and excluding anti-idling devices from GST are only a few such exemptions that would help the construction industry remain competitive.
On the subject of infrastructure planning, the association would like to see the government commit to a 25-year national infrastructure-spending plan. Since much our national infrastructure was built in the 1960s and 1970s, it is reaching, or has past, the end of its service life. And while the government has enacted initiatives such as the Investing in Canada Plan, which commits $180 billion in federal funding for public infrastructure over 12 years, and the Canada Infrastructure Bank, which invests funds into projects while generating revenue through public and private capital, the association worries that these funding commitments to change with a change of government. Funding, it says, must be made steady, reliable and consider long-term infrastructure realities.
On the issue of innovation, CCA is asking the federal government to partner with the industry. It’s no secret that when it comes to innovation, productivity and technology, construction lags behind other industrialized countries. To secure its path for growth, the industry must champion innovation and technological advancement within the right policy framework.
As governments and project owners begin to look at the life-cycle cost of their assets, to reduce greenhouse gas emissions and to seek out more sustainable solutions, the construction industry has an important role to play. CCA is seeking partnerships with all levels of government, academia and industry to advance these priorities and increase awareness of and access to technology by those working in the construction industry.
The association is therefore asking the federal government to earmark spending to stimulate world-class, large-scale innovation and collaboration that will increase productivity and strengthen Canadian competitiveness.
Finally, on the issue of attracting a skilled and diverse workforce, CCA is calling on the federal government to increase funding for career and technical training programs. Recent projections show the industry is about to lose one-fifth of its total workforce due to retirement alone in the next 10 years. A new strategy is therefore needed to recruit, retain and re-train a diverse, skilled and tech-savvy workforce in order to keep the industry healthy and competitive.
As a result, CCA is asking for three things. First, that the government to increase funding for career and technical training programs. CCA is asking the government to fund its request for 1,700 student placements over four years in construction work-integrated learning programs across Canada. Continued funding for apprenticeship programs will strengthen the pool of skilled labour.
Second, that the government invest with CCA in programs that promote the industry as an employer of choice to new Canadians, indigenous groups, women and other under-represented groups. A national strategy to re-position the image of the industry as an inclusive sector with opportunities for career growth is essential to address the workforce shortage.
Finally, CCA is asking that the current procurement process remain the same to ensure productivity and competitiveness. Specific legislation or regulations relating to community benefits associated with construction project may threaten the fair and competitive bidding process on federal government contracts and tenders. The focus should be on working with industry to develop an inclusive workforce strategy rather than on creating legislation that may expose projects to political interference and costly delays.
Learn more about CCA’s 2019 election priorities at www.construction4cdns.ca.