2014 Priorities and Achievements – Canadian Construction Association The Canadian Construction Association is the national voice of the non-residential construction sector in Ottawa and an advocate for its 20,000 members on issues of national importance. Through an integrated membership structure with some 65 partner associations across Canada, construction firms of all sizes are well-represented at the local, provincial, and national level. The following is a brief report on CCA’s activities on behalf of the industry throughout this past year. Industry Summit 1.Business Practices Not surprisingly, the poor quality of design documents was a top trend/challenge identified under business practices, as well as slow payment practices and concerns associated with procurement. In June, CCA invited the chief elected and staff officers of its 65 provincial partner 2.Business Succession As 99 per cent of construction firms operating in Canada—many being family-owned—are considered small businesses (i.e. fewer than 100 employees), and more than 60 per cent are considered micro businesses (i.e. fewer than 5 employees) , it was also not a surprise that business succession was top-of-mind for many Summit participants. associations to an Industry Summit held in Victoria, British Columbia. The purpose of the Summit was to identify 3.Globalization A recurring trend or challenge raised during the Summit was the ability of medium-sized firms to continue in a market consisting of increasing project sizes, project bundling, and more integrated delivery approaches. This theme is even more relevant given that Canada’s buoyant construction market and rather mature P3 environment has attracted large European firms, as well as the recent free trade agreement with the European Union. In addition, the procurement provisions of that Agreement also bind provincial and municipal governments, meaning the agreement will have a greater impact across the country. opportunities and challenges the non-residential construction sector would face over the coming 5 to 10 years. The two-day session culminated in the identification of seven (7) themes of relevance to the 4.Government Industry’s relationship with governments at all levels was raised as a concern given the recent inquiries into corruption and collusion within the construction industry in some sectors/regions of the country. industry. These themes were then further expanded upon with three statements to The growing fiscal challenges of governments are a concern, particularly at the provincial level where enhanced infrastructure investment is required. A further concern expressed is the emergence of the concept of “social license” with respect to the large resource and trade-based infrastructure projects (e.g. pipelines) and the seeming inability or unwillingness of governments to bring those projects on stream. explain their rationale as critical areas of importance. 5.Infrastructure Similarly to the theme of “Government,” other worrisome trends were identified under Infrastructure, including: • More infrastructure assets approaching the end of their useful service life; • Less political support for ongoing investment in infrastructure renewal; and • Asset owners becoming more dependent on social license to proceed with new construction. 1 6.Labour As is the case in many industries across Canada, the Canadian construction industry has also identified labour supply and training as a key concern and area of interest in the coming years. This is particularly the case in those regions experiencing high demand from the resource and energy sectors. 7.Technology Technologies and their continuing impact upon the industry were also raised as an important theme in the construction industry. Emerging technologies and trends such as building information modelling (BIM), Lean construction, integrated project delivery (IPD), and a number of new methodologies and products will all continue to shape the industry going forward. With these themes and their summaries, the Canadian Construction Association will undertake its strategic planning to shape the direction of CCA’s services and advocacy priorities over the next few years. Recent Accomplishments and Current Priorities Infrastructure Investment CCA and its partner associations across Canada continue to work closely with all levels of government to ensure a timely and effective implementation of the new federal Building Canada Plan. This 10-year, $53.5 billion plan will help serve as a catalyst for further provincial and municipal investments in infrastructure. When combined with federal government investment to improve its own infrastructure, more than $70 billion has been earmarked for infrastructure investment over the next 10 years. Some of CCA’s recent accomplishments and current priorities are: To combat fears that governments may view these significant, but still insufficient investments, as “mission accomplished,” CCA will be releasing a number of strategic reports over the coming year to ensure the federal government remains focused on infrastructure in the lead-up to the next federal election. The first of these reports will be released this fall by the Canada West Foundation, which aims to measure and highlight weaknesses in Canada’s existing trade-enabling infrastructure. This will be followed by a similar report from the Mowat Centre at the University of Toronto, which is looking at the strategic role that municipal governments can play in the development of Canada’s trade-enabling infrastructure. Finally, in the fall of 2015, CCA and its partners will release the next edition of the Canadian Infrastructure Report Card, which will report on the adequacy of Canada’s municipal assets in the areas of roads, overpasses and bridges, sewers, water treatment and water delivery systems, public transit and municipal sports and recreational facilities. Combined, these reports should ensure the adequacy of Canada’s current infrastructure and infrastructure investment issues remain top-of-mind with the media, elected officials and the public. Standard Construction Documents One of the primary mandates for CCA continues to be the development and promotion of standard construction forms and guides related to industry best practices. There are a number of new documents planned for release this year, including a new Prequalification Guide for Owners, an update to the CCDC Insurance Guide, and a new Guide on the Construction Management Project Delivery Method. Immigration Reform Immigration reform remains a top CCA priority. In brief, CCA’s current priorities in this area deal with the following: 2 • Temporary Foreign Worker Program – Preserving the ability of construction firms to access foreign-trained workers on a temporary basis, including the seeking of a more responsive and efficient system; • New Federal Skilled Trades Program – Expansion of eligible trades; and • New Express Entry system expected in 2015 – Seeking to ensure employer access. Corporate Social Responsibility A CCA task force is currently examining best practices associated with corporate social responsibility (CSR) and is looking at the possible development of a background document on the relevance and importance of CSR to the construction industry-at-large, and individual construction firms. Drug and Alcohol Programs CCA recently developed a generic drug and alcohol policy for use by construction firms. Industry Research & Development Now independently operational, CCInnovations is the result of a challenge by the CCA that an Institute be established to instill a new culture for innovation in the Canadian construction industry. Its objectives are: • To use innovation to make the Canadian construction industry more competitive; • To define a broad research, development and innovation agenda to support national goals; • To establish an effective system of selecting, pursuing and funding research projects and programs; • To identify the means by which new products and services can best be commercialized; and, • To facilitate the dissemination and adoption of innovation, technology and new practices. Policy Opposing Restrictive Bidding Practices by Public Owners Recently the CCA Board approved a new Policy Statement (a full list of CCA Policy Statements is available on the CCA website) opposing the increasing practice by public owners of precluding contractors from bidding if they have pursued or are pursuing claims against that owner or other owners. National Construction Industry Ethics Course CCA has approved a proposed course outline for a national construction industry ethics course to be developed by BuildForce Canada. New Tool to Combat Owners Self-Performing CCA developed a document for the use of contractors and partner associations in combating the spread of own-force construction by public owners. The document argues against the practice and is written as a checklist intended to help partner associations and members persuade elected officials of the significant cost differentials between own-force construction and openly tendered construction. The document is available from all CCA partner associations and can be downloaded from the CCA website at www.cca-acc.com. Canadian Common Ground Alliance CCA appointed Mr. Vince Bellissimo of Timbel Limited in Toronto, a director and past president of the Ontario Sewer and Watermain Construction Association (OSWCA), to the board of directors of the Canadian Common Ground Alliance (CCGA). The CCGA is engaged in the development of a national best practices guide for the management of sub-surface infrastructure. By participating in CCGA board activities, CCA can ensure a contractor’s perspective is considered as part of the development of the national best practices guide. 3 Usage of the Careers in Civil Construction Website CCA recently updated its resource for partner associations to provide information to prospective employees considering careers in the civil trades. For more information, please visit: www.careersincivilconstruction.ca. Silica Exposure Limits At the urging of the Alberta and BC road builders, CCA agreed to undertake the development of a national silica management best practices guide. The guide is expected to be completed and publicly available before the end of the year. In addition to the guide, CCA is also exploring with the BC Construction Safety Alliance the development of an online silica management and exposure mitigation tool for contractors. The tool, if approved, should be available to contractors by the spring of 2015. Aboriginal Best Practices Guide The CCA Board agreed to fund the development of an industry best practices guide for working on, and in partnership with, Aboriginal Canadians. The guide, which is currently under development, is intended as a practical primer for contractors and is expected to be publically available in 2015. 2015 Federal Budget Priorities Apprenticeship: • Increase the Apprenticeship Job Creation Tax Credit from 10 per cent of eligible wages up to a maximum of $2,000, to 25 per cent of eligible wages up to a maximum of $5,000. CCA’s recommendations for this year’s federal budget are: • Remove the eligibility restrictions limiting the credit to only the first and second years of an accredited Red Seal Trade program to permit applicability to all years of any provincially recognized apprenticeship program. Labour Mobility: • Introduce a new mobility tax deduction for tradesperson expenses incurred as part of job searches outside a 250 km radius from their permanent residence that are not covered by employers or other government support programs. Infrastructure: • As the federal deficit is retired, allocate a portion of future surpluses to augment program funding under the National Infrastructure Component of the New Building Canada Plan for the modernization of Canada’s trade enabling-infrastructure. Innovation: • Increase research funding to support industry-led research and innovation. Tax Reform: • Improve industry productivity by increasing the maximum permissible annual depreciation for Class 38 assets (mobile equipment assets) from 30 to 50 per cent. For more information on any of the items contained in this report, please contact Bill Ferreira at CCA at 613-236-9455 or by email at bferreira@cca-acc.com. 4