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CONSTRUCTION
ECONOMIST
FALL 2012
The Journal of the Canadian Institute of Quantity Surveyors
Le Journal de l’Institut canadien des économistes en construction
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CONSTRUCTION
ECONOMIST
FALL 2012
The mission of CIQS is to promote and
advance professional quantity surveying
and construction estimating; to establish
and maintain national standards;
to recruit, educate and support The Journal of the Canadian Institute of Quantity Surveyors
our members. Le Journal de l’Institut canadien des économistes en construction
Canadian Institute of Quantity Surveyors
Features
90 Nolan Court, Unit 19, Markham, ON L3R 4L9
t. 905/477.0008 f. 905/477.6774 The evolution of construction cost
toll free. +1 866/345.1168
e. info@ciqs.org estimating and project management technology . . . . . . . . 12
www.ciqs.org
Executive Director Challenging yourself without changing jobs. . . . . . . . . . . . . 16
Lois Metcalfe. ........................... . . . . . . execdir@ciqs.org
Two additional fully accredited programs for CIQS. . . . . . 19
Editor
Joshua Mutize, PQS.................... . . conecon@ciqs.org
Translation
André Bernard, ECA
2012 AGM presentations. . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Send Change of Address to:
Canadian Institute of Quantity Surveyors
90 Nolan Court, Unit 19, Markham, Ontario L3R 4L9 Construction cost trends . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
CIQS Council
President:
Mark Russell, PQS(F)
1st Vice President & CIQS - Maritimes Rep:
Mark Gardin, PQS
Secretary/Treasurer &
CIQS – British Columbia Rep:
Roy Howes, PQS
CIQS - Ontario Rep:
Chris Court, PQS
CIQS - Prairies and NWT Rep: 16
Dave Burns, PQS
CIQS - Québec Rep: On cover – 1st photo: L to R - Michael Bernier, CIQS – Prairies and NWT Vice President,
Jean Paradis, ECA Mark Gardin, CIQS Vice President, Nancy Wheatley, RRC Dean of School of Construction
Past President & Engineering Technology, Dave Burns, CIQS – Prairies and NWT President, Jerry
& CIQS - Newfoundland and Labrador Rep: Johnstone, RRC Chair Civil Engineering Technology, David Lai, CIQS Education
Roy Lewis, PQS(F) Administrator and Roger Ward, CIQS – Prairies and NWT Director;
Education Administrator: 2nd photo: L to R – Mark Russell, CIQS President, Gord Nixon, SAIT’s Vice President,
David Lai, PQS(F) Academic,, David Lai, CIQS Education Administrator, Dave Burns, CIQS – Prairies and
NWT President, Dr. Faisal Arian, Academic Chair, Bachelor of Science Construction Project
Management at SAIT and Scott MacPherson, Dean, School of Construction at SAIT.
Departments
Statements of fact and opinion expressed are those of
the authors and CIQS assumes no responsibility for the
content, nor do they represent official policy of CIQS.
Published four times a year on behalf of the President’s message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Canadian Institute of Quantity Surveyors by
Executive Director’s message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Editor’s message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Third Floor - 2020 Portage Avenue
Education updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Winnipeg, Manitoba R3J 0K4
Tel: 866-985-9780 Fax: 866-985-9799 CPD Corner/Congratulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Welcome new members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
info@kelman.ca www.kelman.ca
Managing Editor. ........................ Chris Kelman
Industry news. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Art Design/Production. ............ Tracy Toutant
Advertising Coordinator. ...... Stefanie Ingram
Marketing Manager. .................. . . . Kris Fillion
kfillion@kelman.ca 866-985-9798
OUR CONCERN FOR THE
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vegetable oil-based inks. Please do your part for the environment by reusing and recycling.
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President’s Message
Our Council has wasted no time Mark Russell, PQS(F)
C Volunteers are the lifeblood of the Institute and
ouncil started off the year with
a list of goals to accomplish
and they have wasted no time their time, efforts and input have helped the
in getting down to work.
The September Council meeting has in Institute flourish and grow.
recent years turned into the ‘Roadshow’
meeting for Council, whereby we visit Council then spent time on Friday after- the pleasure of meeting Mr. Pascal Asselin,
an Affiliate for our Council meeting, as noon with Red Door Media, the firm com- President of Le Comité Européen des Econ-
opposed to meeting at the CIQS Head missioned to update the website and new omistes de la Construction (The European
Office. For the second year in a row content management system. The evalua- Council of Construction Economists - CEEC),
we found ourselves in the West for yet tion process that last year’s Council under- during his recent vacation in Vancouver. We
another accreditation ceremony. This took was very detailed and all-encompass- had a lengthy discussion on the attributes,
year it was CIQS Prairies and Northwest ing. The status report and overview pro- strengths, issues and challenges of our
Territories’ turn to host CIQS Council, vided by Red Door Media was professional respective organizations and found that we
predominantly to partake in the celebra- and impressive and they are well on their have more in common than we could have
tions surrounding the accreditation of the way to having the new system ready for imagined. An invitation was extended to
Construction Project Management degree early 2013. Users of the old CIQS website attend the next CEEC meeting in Novem-
course at the Southern Alberta Institute of and Members Only area will notice a huge ber, which was discussed and accepted by
Technology (SAIT). change in the look, functionality and acces- Council, so I will be representing CIQS at
The accreditation of any course takes sibility of the new website – all tied back to the meeting.
an incredible amount of time, from the the new CIQS Brand Standards. We are busy planning our attendance at
initial contact through to fostering relation- CIQS Prairies and Northwest Territories the PAQS Congress in Xi’an, China next
ships to course comparisons to analytical hosted a meet and greet with the local May. Readers of the last Construction
matrix and final evaluations. This work Calgary members and Council late Friday Economist will note from Andrew Collins’
in the first instance is carried out by the afternoon. These events are invaluable to report that the CIQS representation, in
volunteers at the Affiliate level, prior to all parties, as the members get the oppor- terms of number of attendees, is contrary
approval by the CIQS Education Admin- tunity to engage with Council and, in turn, to our standing within the organization and
istrator and subsequent presentation to Council gets face time and a chance to our level of participation within various com-
Council for final review and approval. The meet more of the membership and Affiliate mittees. In order to stay at the forefront of
documentation provided is extensive and Board volunteers. This informal forum pro- these organizations, we need to expand our
credit is due to the CIQS Prairies and vides a good opportunity for dialogue on a registration numbers and Council is pursuing
Northwest Territories Board and volun- variety of topics. avenues that could allow this to happen.
teers who now have two accreditations in Before I move on, Council passes on As important as CIQS participation is at
place (the other being Red River College our thanks to CIQS Prairies and Northwest International events, we cannot lose sight
in Winnipeg) and are working hard on Territories for hosting an enjoyable week- of participation within our own country. Vol-
their third – all within the space of a year. end which was also tremendously pro- unteers are the lifeblood of the Institute and
The ceremony at SAIT was attended by ductive. The inimitable and effervescent their time, efforts and input have helped the
80 people consisting of a mix of students, CIQS Prairies and Northwest Territories Institute flourish and grow. For recent evi-
faculty, Affiliate Board members and CIQS President, Dave Burns PQS, was our main dence of this you only need to look at what
Council. SAIT also took the opportunity to host and the enthusiasm that he has for has been achieved with the increase in ac-
proudly showcase their newly completed his City, Affiliate and Profession is both creditations across the entire country.
$400M Trades and Technology Complex, palpable and infectious. If you are interested in getting involved,
which spans 753,000 square feet over My last message touched on the need then I would encourage you to do so. Who
three buildings. to maintain our International status. I had knows, you may even like it.
4 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2012
Message du Président
Notre Conseil n’a pas perdu de temps
L
e Conseil a débuté l’année avec de $400M du «Trades and Technology tion Affiliée et sa Profession est à la fois pal-
une liste de buts à atteindre et Complex», qui s’étend sur 753,000 pieds pable et contagieuse.
n’a pas perdu de temps à se carrés répartis en trois bâtiments. Mon précédent message traitait de la né-
mettre à la tâche. Le Conseil a passé du temps, le ven- cessité de maintenir notre statut International.
La réunion du Conseil de septembre des dredi après midi, avec «Red Door Media», J’ai eu le plaisir de rencontrer Monsieur Pas-
dernières années tournait en «Roadshow» la firme mandatée pour rafraîchir notre site cal Asselin, président du Comité Européen
où nous visitions une Association affiliée internet et système de gestion de contenu. des Économistes de la Construction (CEEC),
pour notre réunion du Conseil, plutôt que Le processus d’évaluation que le Conseil durant ses récentes vacances à Vancouver.
de tenir la réunion au siège de l’ICÉC. Pour de l’an dernier avait entrepris était très dé- Nous avons eu une longue discussion sur les
la deuxième année consécutive, nous nous taillé et compréhensif. Le rapport d’étape attributs, les forces, les problèmes et défis de
sommes retrouvés dans l’ouest pour une et le sommaire présenté par «Red Door nos organisations respectives et avons trouvé
nouvelle cérémonie d’accréditation. C’était Media» était impressionnant et profession- que nous avons plus en commun que ce que
cette année le tour du «CIQS Prairies and nel et ils sont en train de mettre en place nous pouvions imaginer. Une invitation nous
Northwest Territories» d’accueillir le Con- un nouveau système qui sera opération- été faite d’assister à la prochaine rencontre
seil de l’ICÉC, principalement pour partag- nel en début de 2013. Les utilisateurs de du CEEC en novembre, laquelle fut discutée
er les célébrations entourant l’accréditation l’ancien site internet du CIQS/ICÉC et de et acceptée par le Conseil, aussi je vais
du programme et diplôme en Gestion de la la section Membres Seulement, verront un représenter le CIQS/ICÉC à cette rencontre.
construction au «Southern Alberta Institute changement important dans l’apparence, Nous nous activons à préparer notre par-
of Technology (SAIT)». la fonctionnalité et l’accessibilité du nou- ticipation au congrès du «PAQS» à Xi’an,
Peu importe le cours, son accréditation veau site internet - tout étant lié aux nou- en Chine en mai prochain. Les lecteurs du
requiert un temps incroyable, du premier veaux standards de marque du CIQS/ICÉC. dernier «Construction Economist» noteront
contact, à travers les démarches visant Le CIQS Prairies and Northwest Ter- du rapport d’Andrew Collins que le CIQS, en
à développer les relations, aux comparai- ritories tint un «meet and greet» avec les termes du nombre de participants, y était
sons de cours, aux matrices analytiques membres locaux de Calgary et du Conseil sous représenté, ce qui est contraire à nos
jusqu’aux évaluations finales. Ce travail vendredi en fin d’après-midi. Ces événe- obligations au sein de l’organisation y com-
est d’abord entrepris par des bénévoles ments sont d’une grande valeur pour pris le niveau de participation au sein des
au niveau de l’Affiliée, avant d’être ensuite toutes les parties, puisque les membres y divers comités. Afin de rester aux premiers
approuvé par l’Administrateur à l’éducation ont l’opportunité de rencontre avec le Con- rangs de ces organisations, nous devons
de l’ICÉC et ensuite présenté au Conseil seil et en contrepartie le Conseil obtient augmenter le nombre de nos membres par-
pour revue et approbation finale. La docu- du face à face et la chance de rencontrer ticipants et le Conseil étudie des manières
mentation fournie est extensive et le crédit davantage de membres et bénévoles du de rendre cela possible.
en revient au conseil du «CIQS Prairies conseil de l’Affiliée. Ce forum informel pro- Aussi importante que puisse-t-être la par-
and Northwest Territories» et ses bénév- cure une bonne occasion de dialogues sur ticipation du CIQS à des événements interna-
oles qui ont maintenant deux accrédita- une variété de sujets. tionaux, nous ne devons pas perdre de vue
tions en place (la deuxième étant celle du Et avant de passer à autre chose, je la participation à l’intérieur de notre propre
«Red River College» à Winnipeg) et qui transmets les remerciements du Conseil pays. Les bénévoles sont le sang de l’Institut
travaillent maintenant à leur troisième - au «CIQS Prairies and Northwest Ter- et leur temps, leurs efforts et apports ont
tout cela en l’espace d’un an. ritories» pour nous avoir procuré une fin contribué au développement et la croissance
La cérémonie au SAIT accueillait 80 de semaine aussi agréable et extraordi- de l’Institut. À l’évidence, nous n’avons qu’à
personnes réparties en étudiants, ensei- nairement productive. L’inimitable et ef- regarder ce qui a été accompli en termes du
gnants, membres du conseil de l’Affiliée fervescent président du «CIQS Prairies and nombre d’accréditations à travers tout le pays.
et membres du conseil de l’ICÉC. Le SAIT Northwest Territories», Dave Burns PQS, Si vous êtes intéressé à vous impliquer,
profita de l’occasion pour montrer avec fi- fut notre principal hôte et l’enthousiasme alors je vous encourage à le faire. Qui sait,
erté les nouvelles installations d’une valeur qu’il démontre pour sa Ville, son Associa- vous pourriez même aimer ça...
Fall 2012 | www.ciqs.org | CONSTRUCTION ECONOMIST | 5
Executive Director’s Message
Canada
Not-for-Profit Corporations Act Lois Metcalfe
A
new Canada Not-for-Profit Corporations Act be changed to comply with CNCA, what is outdated,
(CNCA) came into effect on October 17, 2011. inapplicable, etc. and what needs to be changed. We are
This means that corporations governed by the currently drafting articles for the Certificate of Continuance
Canada Corporations Act will have three years (until which will replace our Letters Patent. The next step will
October 17, 2014) to continue under the new Act. The new be to revise our By-laws. CIQS have retained legal counsel
Act will not automatically apply. Every national not-for-profit to ensure compliance and it is hoped that we will be in a
association needs to take the necessary steps to transition to position to present these documents for approval at the
the new Act. 2013 Annual General Meeting in Montreal.
This has been on CIQS Council’s radar for the last year. If you would like more information on the new
We are currently reviewing our letters patent, supplementary Canada Not-for Profit Corporations Act please visit
letters patent and By-laws to determine what needs to www.ic.gc.ca or feel free to contact me.
The new Act will not automatically apply. Every national not-for-profit
association needs to take the necessary steps to transition to the new Act.
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6 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2012
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Editor’s Message
Cost trends,
building permits and sustainability Joshua Mutize, PQS
I
n July, the total value of permits For more details on building permits, compared to previous month.
declined in six provinces, led see the related article in this issue. In August, employment rose
by Ontario and followed by by 15,000 in British Columbia, pushing
Saskatchewan and Alberta. This Cost escalation 2012 the unemployment rate down 0.3 per-
decrease in July was 2.3% from June. Construction escalations in Canada are centage points to 6.7%. Compared
After two consecutive monthly currently trending at 2.1%. Moderate with 12 months earlier, employment in-
gains, Ontario recorded the largest escalation is expected throughout 2012 creased 2.3% above the national growth
decrease, mainly as a result of and is expected to sharply rise beginning rate of 1.0%.
lower construction intentions for in spring 2013. Material prices will In Saskatchewan, employment in-
multi-family dwellings, institutional continue to dominate cost escalations in creased by 4,600, bringing gains over
and industrial buildings. In Canada, most parts of Canada; however, labour the past 12 months to 3.6%, the highest
Toronto and Regina are the two will continue to dominate Alberta and growth rate of all provinces. The increase
cities that posted the largest permit Ontario. Due to China’s large scale in employment in August pushed the
decrease. Regina construction market investments in ultra-high voltage power unemployment rate down 0.6 percentage
is mostly dominated by multi-family transmission lines, Canada, like the rest points to 4.4%, tied with Alberta for the
dwellings and institutional buildings, of the Americas, will continue to see lowest rate among all provinces.
the sudden cold feet on intended increases in the prices of copper and Employment increased by 3,400 in
construction resulted in Regina’s aluminum. Manitoba in August and the unemploy-
decrease in permit value. Toronto, on Other material price escalations are ment rate fell by 0.3 percentage points
the other hand, was impacted by sharp primarily due to added pressure on to 5.4%. Compared with 12 months ear-
decrease in residential and educational supplies due to emerging economies in lier, employment was up 0.9%.
institutional. countries such as India, Uruguay and Employment fell by 25,000 in Ontario
The decline in Saskatchewan, which Brazil. For more details on construction leaving employment similar to its level in
was the second in a row, originated cost indices, see article in this issue on August 2011. The unemployment rate in
from residential and non-residential cost escalations. the province was 8.0% in August 2012.
construction. The total value of permits (Source – Statistics Canada)
in Saskatchewan was 10.3% higher Labour force So, what are my construction opinions
than the monthly average in 2011. Employment rose by 34,000 in August in the next 12 months?
The Alberta decrease was due to an increase in part-time work. Despite the drop in construction
contributed to lower construction Overly, employment increased by 1.0% intentions in most of the provinces, my
intentions in educational institutional or 177,000 over last year. Part-time forecast is that, overly, on a year to year
and residential. In contrast, Alberta work represents 70% of this increase. basis building permits value still points
posted large increases in permit Employment opportunities were more to a steady 2012 and probably starts a
values for non-residential structures, favourable among people aged 55 and noticeable climb beginning spring 2013.
such as manufacturing plants, utilities over, while the student employment rate Employment will continue holding strong
and transportation-related buildings. actually dropped 2% compared to the in Alberta, British Colombia and Quebec.
Calgary Airport is a good example of same month last year. Despite spikes in materials as a result
a large scale transportation-related Based on a Statistics Canada of strong infrastructure developments in
buildings investment. Alberta’s gain labour survey employment in Quebec China, India and Brazil, slow construction
rose 6.4% to $1.7B. Although multi- increased by 33,000 jobs due to a in Europe will provide a windfall to North
family dwellings attributed to the major increase in part-time work. America; holding material prices from
decrease, the percentage contribution This slightly improved the rate from spiking in double digits. Now, I would
was lower than that experienced in the previous year. Employment rate like to pen down and lead you into
Ontario and Saskatchewan. for August was unchanged at 7.6% a discussion on future of sustainable
8 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2012
Editor’s Message
The connection between climate disruption and
the built environment has emerged strongly in
the public consciousness over the past decade.
construction. At World Economic Forum safe drinking water is ensured for all, the disciplines and move beyond boundaries
2012, sustainability was one of the framework is clear and progress can be that are seen as impassable today.
topics that consumed world leaders’ more rapid. The following topics will be explored
discussions. Please read this not just Sustainable construction is defined in order to identify opportunities for
for interest, but think about what we broadly as engaging all dimensions stakeholders to catalyze sustainable
as an industry can do to take a strong of human environment; building, construction, nurture collaboration
leadership in our communities? infrastructure, materials, energy, between different sectors of the public
landscapes and systems. The concept and private realms and consider
Future of sustainable construction is also based on a clear understanding educational strategies:
(Source: World Economic Forum 2012) of the societal dimensions that support • Energy (sources, distribution, demand/
The connection between climate the building industry worldwide. This use)
disruption and the built environment elevation of the social dimension of • Carbon (mitigation, metrics)
has emerged strongly in the public sustainability has emerged as a powerful • Materials (sources, use at various
consciousness over the past decade. trend in current sustainable or green scales in construction, development of
Expectations are now great for an initiatives. alternatives)
industry that historically has been • Logistics (structures of supply,
among the slowest to change. Dimensions assembly and distribution that support
In order to respond effectively It has become clear that the structure of the culture of construction)
to these changes, all stakeholders communities - cities, towns and villages • Water (sources, distribution, quality/
benefit from envisioning a positive – has a much more significant effect than health, demand/use)
future in which environmental the ‘greening’ of buildings alone. • Society (the equitable reconciliation
needs are reconciled with social and Progress towards this vision will be of environmental and economic
economic dimensions. This is the far more effective when stakeholders dimensions that shape communities)
definition of sustainable development. focus on the accrual of positive effects • Metrics (how to define and quantify
The environmental movement has rather than on the reduction of negative progress in all the above across scale
traditionally emphasized limits, ones. Simply being ‘less bad’ is not good and cultures)
encouraging individuals and societies enough. What is needed is an ‘eco- Look to the next issue for more
to be ‘less bad’ and reduce impact. effective’ approach that enables us to sustainability articles as well as an article
As an end in itself, this call to envision solutions, create synergies among on International Construction Outlooks.
personal environmental and societal
responsibility has not catalyzed change
to the extent needed to achieve vaunted
goals such as carbon neutrality. The
emphasis is on current behavior and not
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Fall 2012 | www.ciqs.org | CONSTRUCTION ECONOMIST | 9
Education Updates
Congratulations on
development of SAIT program David Lai, PQS (F)
T
he first CIQS Council meeting for 2012/2013 took
place in Calgary in September 2012. This meeting Congratulations to those
was planned to coincide with the accreditation
ceremony of the Bachelor of Science degree program
members of the Institute who
in Construction Project Management offered by the SAIT
Polytechnic. Congratulations to those members of the Institute
were involved in the development
who were involved in the development of this program. Details of this program.
of this event are published under separate articles in this
edition of the Construction Economist. It is interesting to note subject C309 – Development Economics to the Direct Final
that prior to 2011, all of the fully accredited programs were Examinations for PQS will become effective in January 1,
located in Ontario. Since March 2011, the CIQS has accredited 2013;
three B.Sc. degree programs outside of Ontario. This is a great • The pass mark for the Direct Final Examinations will
achievement for the Institute and it means that we now have change to 60% instead of 70%;
fully accredited programs covering a wider geographical area of • There will be no limit on the number of times a candidate
the country. can attempt the examinations.
Other educational items discussed at the CIQS Council • Council decided that the rule that candidates attempting the
meeting were: CEC or PQS designation via the Direct Final Examinations
• It was brought to Council`s attention that the current TPE must take the CIQS examinations will remain in effect.
diary process/requirements may need improvements since • A new text book for subject C309 – Development Economics
they create challenges during the assessment process. has been identified and will be published by CIQS. This
Council decided that the mandatory areas of experience for book is written by one of our retired members, Mr. James
CEC need to be identified separately from those of PQS. Cuthbert, PQS (F).
• The requirements for the Direct Finals Examination for CEC • I put forward the suggestion that a National Education and
and PQS were discussed. Council decided that as of January Membership Committee be created. Council was in full
1, 2013, the following changes will become effective: agreement since there would be huge benefits arising from
• Subject C304 – Contract Administration will be added to this committee. Each Affiliate will have representation on this
the Direct Final Examinations for CEC; committee and suggestions arising from this committee will
• Now that a new text has been identified, the addition of be reflective of the wide spectrum of our membership.
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10 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2012CPD Corner
Mark Gardin, PQS To be or not to be...continuous
W
illiam Shakespeare was a bit of a genius when For the CIQS CPD program, there is no question, it absolutely
it came to profound quotes. Writing poetry and must be administered annually and remain continuous. Otherwise,
plays was to him what numbers are to a quantity if we compared to other professional organizations, it is merely
surveyor. His works were filled with now famous smoke and mirrors. This is the single greatest reason why we do
quotes like the one I kind of borrowed for the title of my article not have ‘carrying over’ points for multiple years. I believe this prac-
from his masterpiece Hamlet. And in Henry IV, he gave us: tice will dilute the fundamental goals and principles of the program.
“...When we mean to build, And our CPD program can focus the word ‘continuous’ – but in
We first survey the plot, then draw the model; the context of change. At the last Council meeting held in Septem-
And when we see the figure of the house, ber, Council voted in favour to remove the maximums in all the cat-
Then must we rate the cost of the erection; egories except Professional Activity.
Which if we find outweighs ability, This new change came about from discussions on the current
What do we then but draw anew the model CPD points system and whether a review is warranted. One exam-
In fewer offices, or at last desist ple relates to members who sit on chapter, affiliate and national
To build at all? Much more, in this great work, boards (or all three at the same time) who dedicate countless hours
Which is almost to pluck a kingdom down of personal time but would only receive the maximum 20 points
And set another up, should we survey under the Participation category.
The plot of situation and the model, This initial change to eliminate the maximums gives actively
Consent upon a sure foundation, participating members more access to additional CPD points. And
Question surveyors, know our own estate...” hopefully it may encourage other members to participate on boards.
This is a great interpretation of what a quantity surveyor is The next step is to complete an overall review of the points
asked to do on a daily basis. We should be proud to be in a pro- awarded in each category and determine if further changes are war-
fession having such recognition and history that dates back over ranted. Feedback from the membership is always welcomed and all
400 years. suggestions will be reviewed.
But enough with the history lesson; let us get to the good stuff: So it appears CIQS will opt for the ‘to be’ part of Shakespeare’s
Continuous Professional Development. And my focus in this arti- question and be not only continuous in learning but also in change
cle is the word ‘Continuous.’ and evolution.
By now, we understand in our professional life, learning is not And why not leave you with one more quote from Shakespeare
over when we leave school and begin working – it is life-long, and that I found very relevant and amusing to me as a quantity surveyor.
it is where the ‘continuous’ derives from in CPD. Why life-long “I am not bound to please with my answers.” Sometimes quantity
learning? In our profession, is there not continuous change? Every- surveyors are the bearers of bad news when we are in a situa-
thing in the construction and infrastructure industry is constantly tion where the design (however wonderful it may be) exceeds the
and rapidly evolving. Stop learning, and we will be left behind. budget.
Congratulations to the following members who have qualified as a PQS or CEC (including reinstatements):
CIQS – Ontario Robert M. Ennis, PQS CIQS – Prairies and NWT
Amal Abdelsayed, CEC Maha Farahat, PQS Vipulchandra Bakre, CEC Faizur Khan, CEC
Solomon Agbede, CEC Mark Smith, CEC Raymond Bott, PQS Wayne Procter, PQS
Mukhtar Almuflahi, CEC Feyza Tatar, CEC Joseph C. Coyne, PQS Dennis G. Sutherland, CEC
Innocent Ariajegbe, PQS Alistair Dearie, PQS
Hafeez Azeez, CEC CIQS Members at Large Arlo William Duffy, CEC
Nicholas Bowe, PQS Abiola Adebisi, CEC Jessel Pineda Gonzales, CEC
Olagundoye Akinlabi, PQS
Fall 2012 | www.ciqs.org | CONSTRUCTION ECONOMIST | 11The evolution of
construction cost estimating
and project management technology By Peter Cholakis
Introduction
Accurate, timely and transparent cost provide a means to create and report a lect, store and provide cost data in electronic
estimating is critical to the success of any construction cost estimate. Cost con- format, including materials, equipment, labor
renovation, repair, sustainability or new struction models can also be built within line items, productivity factors, as well as
construction project. An equally important speadsheets. Productivity improvements assembly and square foot cost information
consideration is the construction delivery result from the ability of Excel to easily and localized cost indices such as the City
method. handle a lot of the more mundane calcula- Cost Index (CCI).
Most construction cost estimators con- tions required. Based upon the size and type of construc-
tinue to rely primarily upon hardcopy docu- One problem with spreadsheets, how- tion project, estimators soon found that they
ments and electronic spreadsheets such as ever, is their inherent vulnerability to er- could improve their productivity and accu-
Microsoft ExcelTM. Relative to construction rors due to data entry, a problem that only racy even further by sharing cost data and
delivery methods, most Owners, Contrac- increases along with the complexity of leveraging standardized reference cost infor-
tora and AE’s engage in a version of the an estimate. Also, as the formulae within mation for specfic items/areas. Standardized
outdated and adversarial design-bid-build the spreadsheets become more numerous cost data architectures also became impor-
process. (DBB). and complex, errors became exponentially tant, such as the Construction Specifications
Growing numbers of cost estimators, more frequent and costly. Spreadsheets Institute’s (CSI) Masterformat, Uniformat and
however, have the need to work with mul- also do not easily account for the use of even newer OMNICLASS.
tiple projects and multiple estimates simul- dynamic vs. static cost information or su-
taneously, securely share information on port the use of historical information. Both Collaborative, Integrated Project Deliv-
active projects and better leverage local- have proven to be important variables for ery methods and Job Order Contracting
ized cost information reuse historical data. many construction projects. Lastly, since As noted spreadsheets have proven value for
At the same time, Owners, Contractors spreadsheets are bascially single user single, ‘static,’ estimates of a certain project
and AEs are recognizing the need to work applications, collaboration and reporting size, as well as a media to gather and trans-
collaboratively as early in the construction relative to roll-ups for example, are both fer data sets. Similarly, the integration of
process as possible. problematic. Audit trails on a ‘cell’ level electronic cost books with spreadsheets are
As a result many are moving to ad- are also not possible, thus transparency equally valuable for individuals performing a
vanced cost estimating and management and accuracy are negatively impacted. small number of relatively straight forward
systems and various forms of integrated Multiple people working on the same construction, repair, or renovation estimates
project delivery (IPD) methods. Further- spreadsheet, or multiple spreadsheets, and projects, say three to five per year.
more, these ‘innovators’ are discover- while on the same project is inefficient However, with greater productivity re-
ing that significantly higher productivity and risk prone. Thus estimates and as- quired, the need for collaboration, transpar-
(50%+) and cost savings (5%-20%+) may sociate information and reports created ency and better information use and reuse
be attainable. The collaborative aspects using spreadsheets tend to be created became apparent. Thus, two signifincant
of these advanced cost estimating and and stored in different locations, making developments came to be, (1) newer, col-
project management software systems information difficult to accurately retrieve. laborative construction delivery methods
are also better aligned with the process of As a result, changes extremely costly to such as Integrated Project Delivery (IPD) and
life-cycle management supported by digtial execute, while old data errors are perpetu- Job Order Contracting (JOC), and (2) con-
technology, otherwise known as Building ated, copied over and over again. struction cost estimating and project delivery
Information Modelling (BIM). As it became apparent that more local- software technology.
ized and historical data would be critical Job Order Contracting is a form of Integrat-
Spreadsheets to improving the accuracy of construction ed Project Delivery developed over 20 years
Construction estimating involves the cost estimates and cost models, organiza- ago and has a long, successful track record
estimating of material, labor, equipment, tions instituted a formal process for col- within certain institutional sectors in the
overhead and contingencies. Spread- lecting and storing this information. Indi- United States, and is now moving into Cana-
sheets, most commonly Mircrosoft Excel, vidual Owners, Contractors and AEs be- da. Collaborative cost estimating and project
are used by more estimators for this gan to collect this information internally in management solutions have been develop to
purpose than any other tool. Spreadsheets databases. Third party cost organizations, support these and other constuction delivery
have significantly improved cost-estimation such as RSMeans Company LLC, North methods. The result is a system of business
capabilities and accuracy since the 1980s. America’s leading source for commercial processes and supporting technology to ena-
Relatively easy to master, spreadsheets construction cost data, also began to col- bles Owners, Contactors and AEs to modify
12 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2012and constantly improve upon construction Traditional Construction Procurement Process: 9 to 15 Months
project delivery process to meet their indi-
vidual and changing requirements, while all
communicating with the same vocabulary,
and sets of information.
For focus, let us talk a little more about
Job Order Contracting as a process and JOC Construction Procurement Process: 3 to 5 Months
how it is supported in cost estimating and
project management software technology.
JOC provides a much needed solution for
most public institutions attempting to deal
with large building portfolios, including but
not limited to, DOD and non-DOD Federal
Government, State and Local Governments, A properly designed and implemented 4] Performance Basis - on time and on
K-12 and Higher Education, Healthcare and Job Order Contractng can save time and budget performance can be more
other public services. money, as well as improve overall quality readily monitored and becomes the
Job Order Contracting is a competitively by encouraging collaborative communica- norm as contractors are motivated to
negotiated, fixed unit price, indefinite tion, expediting procurement processes, meet and exceed owner expectations in
quantity contract construction project and enabling higher visibility into costs. order to receive additional task/delivery
procurement method. Public agencies A professionally developed and managed orders.
negotiate and enter into a competitively JOC program saves from 8% to 15% or 5] Higher Return on Investment (ROI) -
bid contract with a JOC contractor for an more in time, design and procurement collaborative, predefined JOC pro-
amount it could potentially spend over a costs. The JOC process also allows public cesses and defined accountability
certain time period. entities to begin construction projects in better integrate all project participants
Procurement processes are established weeks rather than months. Project work and mitigate change orders and legal
when putting a JOC program in place. orders can be assigned without bidding claims. A JOC contractor may assume
Complete design and specifications may each project out. A higher percentage of full responsibility for errors, omis-
not be required; thus negotiations may be construction funds are used for work pro- sions, execution of the design, or the
necessary to define processes required to jects vs. procurement costs. JOC requires contractual relationship may be with
accomplish a specific construction task. less time to start a project than conven- an Architectural/Engineering firm.
A cost guide - a construction cost data- tional methods. Projects also can be started more
base of detailed priced tasks - includes a Other JOC benefits can include: quickly which can lead to dramatic
variety of facilities and physical infrastruc- 1] Expedited facility management - the cost savings. Lower administration and
ture including construction, maintenance, repair, renovation, maintenance, and procurement costs enable owners to
repair and renovation work items. The renewal components of managing a focus scarce resources on projects.
priced tasks form the basis for defining and facility portfolio represent a wide range Design costs are also mitigated as the
negotiating task orders and projects. and high frequency of construction technical specifications are defined
The duration and value of JOC’s vary from projects. JOC expedites the facility and included as part of the basic JOC
three to five years, with annual volumes management process by minimizing as- contract, and a significant percentage
from $1M to $100M. sociated procurement costs and costly of JOC projects can be scoped without
The following figure illustrated a typical construction delays. full design documents. Economies of
JOC process: 2] Green and sustainability projects - the scale can also be achieved as group-
need to address improved sustainabil- ing of multiple small or similar projects
ity and high performance for Existing can spread out indirect costs, general
Buildings (EB) is well known. JOC conditions and overhead costs.
can be readily applied to expedite the
deployment of HVAC, exterior shell, Cost estimating and
lighting, building automation and project management software
similar construction projects needed The evolution of technology that
to achieve high performance building integrated business processes, specfically
targets or mandates per LEED EB and efficient project devlivery methods ,
similar guidelines. was the next logical step. Thus cost
3] Support for Local Economies - JOC estimating and project management
readily enables local minority and small software has evolved to support and
subcontractors to perform construction manage multiple construction delivery
work. methods, and there associated multiple
Fall 2012 | www.ciqs.org | CONSTRUCTION ECONOMIST | 13projects and associated estimates. These of construction projects on time and delivery and management software
newer systems, available over the past on budget. Owners, contractors and and the subsequent integration with
ten years, integrated contract, project, AEs now have multiple methods to Building Information Modelling will
estimate and document management. select from based upon their needs. further enhance the ability to produce
Tools include visual cost estimating, Spreadsheets were a major improvement accurate cost estimates and control costs
advanced search engines, and both in the 1980s, followed by formal throughout a buildings life-cycle.
custom and electronic standardized cost processes for collecting and harnessing
data. historical information to more accurately
These integreated software systems project and control costs. Over the past The author is the Chief Marketing
assure contract compliance by not decade, a powerful new capability has Officer for 4Clicks Solutions
simply having a cell in a spreadsheet been added, collaborative cost estimating (www.4clicks.com), a leading
with calculated totals, hidden formulas and project management software. provider of cost estimating and
and lack of traceability. They also The evolution of transparent and project management software
help to organize and standardize collaborative cost estimating and and solutions to the DOD Sector,
office, electronic files, emails, project project management software mitigates and RSMeans Strategic Business
documents and attachments. Sharing, the unproductive aspects of creating Partner. Mr. Cholakis helped to
updating, and reusing estimates and estimates one at a time from scratch, define and established the concept
project information is enabled with and working ‘in a vacuum.’ Additional of CPMS (Capital Planning and
internal and external partners. benefits include the reduction of data Management Solutions), and has
input and formulae errors, as well as domain knowledge and expertise in
Summary costly ‘errors of omission,’ common facilities lifecycle costs and total cost
Over the past forty plus years, there with ‘ad hoc’ spreadsheet-centric of ownership. You can contact him at
have been many initiatives to improve approaches. The application of cloud pcholakis@4Clicks.com.
cost estimating to facilitate the delivery computing to cost estimating and project
The 17th Pacific
Association of Quantity
Surveyors Congress
Sofitel Xian on Renmin Square.
Xi’an China 18 - 21May 2013
Congress Theme
Construction Information -
Cornerstone of the Valuation Management
Contract us
●
Website: www.paqs2013.cn
+
●
E-mail: organise@ceca.org.cn paper@ceca.org.cn
● Tel:(0086-10) 5781 1845 PAQS 2013 Congress Organizer: China Engineering Cost Association
● Fax: (0086-10) 5781 1485
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2-MM8779-11_TDI.EN•ciqs (7x4.625).indd 1 11-12-08 12:15 PM
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Fall 2012 | www.ciqs.org | CONSTRUCTION ECONOMIST | 15Challenging
yourself without
changing jobs
By Patrick Cantin, PQS
Have you ever wanted to
switch disciplines within the construction
sector? Explore opportunities with friends
or colleagues with ties to the mechanical,
electrical, structural or civil side of the
spectrum? Perhaps dabble in a field where For me the switch was simple. Continue scope of work helped me to better under-
you always wanted to explore yet were too working outside in weather and in a job stand and respect the project from multiple
busy working within your comfort zone. that was beginning to take its toll on my levels and how each project required a
Now take a moment to think about body or, switch to something that I knew team of professionals, not just one.
what events led you to the career path I could do if I simply had the push and Today’s society is so pre-occupied with
you are currently on. Are you challenged drive in the right direction. simply changing jobs every time we feel
every day or is there something lingering The first day on the new job saw me the need for change but in reality, oppor-
within you screaming for more? asking myself the question: What am I tunities exist to become an even greater
You need not change jobs to seek new doing here? Handed a specifications book asset to your company or organization by
adventures but rather, look at exploring for a new $10M school and advised to simply expanding your skills to disciplines
the opportunities of expanding your inter- learn it well, my job was to assist the lead that pose new challenges. The tools are
ests on the same jobsite by opening your estimator. While he was busy being the right in front of you and exist at your fin-
eyes to include other disciplines. Project Manager for the project, my job gertips.
Take my experiences for example. When was simple. Find the errors and omissions The next time a new project appears
I graduated from Niagara College, my within the prints and make sure we were in front of you, I challenge you all to take
immediate focus and passion was within one step ahead of any challenges that the opportunity and explore outside of
the civil construction side of things. Some- could negatively impact the schedule. I your comfort zone. Take a look at the civil,
thing about heavy equipment and being remember looking like what I thought was mechanical, electrical or even structural
the first ones on the jobsite early every an idiot walking around the jobsite with drawings and specifications and make a
morning and the last ones to leave late at a detail and specifications book in hand conscious effort to better understand why
night were but some of the reasons why I and comparing what was constructed the design team has chosen to implement
chose this line of work. Be it a new build- versus what was designed on site. Asking a certain design, why a selective material
ing site where foundations needed to be the site supervisor question after question type has been chosen or why a pre-deter-
dug, a new municipal infrastructure pro- until he finally convinced the business mined piece of equipment has been speci-
ject where services needed to be surveyed owner to make me strap on a tool belt fied. Continue to exercise this practice over
and installed or the construction of a spur and spend the next two months on the several projects and trust me when I say
line in the dead of winter to a new remote jobsite. Eyes wide open and absorbing this, such an exercise will truly make you
mine in the middle of nowhere. every opportunity, every waking hour, no a better professional and a well respected
Somewhere early in my career, an op- two projects since that moment have ever team member amongst your peers.
portunity presented itself to leave the been the same. Even similar future pro-
crazy life of blistering cold winters and jects provided excitement as I would dwell About the author – Patrick
sizzling hot summers to the comforts of (after hours of course) at examining the is the current Director of
an office. The catch to this change was mechanical facet of the project; first with Building Installation for
the change of disciplines. I decided to the drawings, then the specifications and le Conseil scolaire public
switch from my comfort zone of quantify- shop drawings then the actual installation. du Nord-Est de l’Ontario
ing, pricing, ordering and managing from As a Project Manager for a General in North Bay. Past
the civil field to the field of architecture. Contractor, I was always one to push the employments included
several years with the Ministry of Natural
College had prepared me with a baseline schedule knowing full well that time was
Resources Northeast Regional Engineering
of knowledge in all disciplines however; I, money. What I failed to realize was that
Unit and prior to that, Project Manager
like most of us, stuck to what I perceived every trade on the job had a vested inter-
and Quantity Surveyor for Cy Rheault
to know best and feel the most comfort- est in the project. Getting to better un- Construction Ltd. of Timmins, Ontario.
able with. derstand how the trades completed their
16 | CONSTRUCTION ECONOMIST | www.ciqs.org | Fall 2012You can also read
