CALGARY CONSTRUCTION ASSOCIATION · I am pleased to report that 2015 was ... engineering students...

CALGARY CONSTRUCTION ASSOCIATION

71St ANNUAL GENERAL MEETING

CCA Education Fund Report

CCA Annual Report

CALGARY

CONSTRUCTION ASSOCIATION

EDUCATION FUND

2015 ANNUAL REPORT

2015 TRUSTEES

Todd Poulsen, Chairman

Rob Bromberg

Kim Connell

Mike D’Attolico

David Hamilton

Richard Neal

Ian Reid

Bob Robinson

Calgary Construction Association Education Fund

2015 Annual Report

2015 Trustees

TODD POULSEN - CHAIR

ROB BROMBERG

KIM CONNELL

MIKE D’ATTOLICO

DAVID HAMILTON

RICHARD NEAL

IAN REID

BOB ROBINSON

2015 CCA Education Fund Report

I am pleased to report that 2015 was another exceptional year as the Calgary construction

community continues to lead the nation in supporting individuals who are either pursuing a

career or furthering their education in construction. And it is through your efforts and

generosity that the CCA Education Fund has exceeded the initial goal of raising one million

dollars – to date over 1.4 million dollars has been raised.

In 2015 the Education Fund Trustees expanded their investment in skilled craftspeople and

technical professionals.

The 11th Annual CCA Education “Fun”draiser Golf tournament was held on August 27, 2015, and

raised an outstanding $66,610. So “THANK YOU” to all the CCA members who generously

contributed.

The Education Fund continues to provide twenty-five $1,000 Alberta Apprenticeship Family of

Scholarships each year in the names of the twenty-five CCA Champions of Education:

Pat Barry (Retired – National Concrete Accessories)

Bill Arnott West Pointe Building Services Inc.

Gary Bardell (Retired – Stuart Olson Inc./Churchill Corp.)

Kees Cusveller Graham Construction & Engineering LP

Doug Davidson Davidson Enman Lumber Ltd.

Greg Davidson Davidson Enman Lumber Ltd.

Ann Donald BFL CANADA Insurance Services Inc.

Fred Dyck (Retired – CANA Construction/Ledcor Construction Ltd.)

Don Goodfellow The Law Firm of W. Donald Goodfellow, Q.C.

David Hamilton Hamilton & Rosenthal, Chartered Accountants LLP

Bob Hildenbrandt Graham Construction & Engineering LP

Malcom Holbrook Pockar Masonry Ltd.

Michael Hullah (Retired – Hullah Malcom & Associates Inc.)

Nigel (Ken) Kennedy (Retired – Griffin Glass (1981) Ltd.)

Dave Kinley Concept Electric Ltd.

Michelle Kresk Deceased

Les LaRocque Botting & Associates Alberta Ltd.

Al Miller Canem Systems Ltd.

Will Sawyer (Deceased – former CCA Operations Manager)

Bob Scrimgeour (Deceased – former CCA Executive Director)

Dean Slater Ledcor Construction Ltd.

Dave Smith Calgary Construction Association

Grant Symon Graham Construction & Engineering LP

Ken Truman (Retired – Kent Construction Co.)

Barry Young Burnco Rock Products Ltd.

The CCA Education Fund provided eight $500 Youth Employment Program scholarships to youth

who are pursuing their career in the construction trades.

Peter Daley Custom Electric Ltd.

Kevin Gastelum Western Electrical Management Ltd.

Niamh McConnell Western Electrical Management Ltd.

Karsten Millman Centurion Mechanical Ltd.

Douglas Newsom Botting Associates Alberta Ltd.

Christian Nori Concept Group

Ricky Toan Concept Group

Cristin Tollefson Modus Structures Inc.

THE ANNUAL CCA MEMBER EMPLOYEE SCHOLARSHIPS were increased to $2,000 and a

minimum of SIX SCHOLARSHIPS will continue to be offered. On the strength of the applications,

TWELVE scholarships will be presented to:

Dakota Browning Sponsored by Elan Construction Ltd.

Jeff Bryant Sponsored by Executive Millwork Inc.

Allan Caguia Sponsored by Westcor Construction Ltd.

Ryan Getschel Sponsored by Ledcor Construction Ltd.

Dennis Hall Sponsored by Bird Construction

Jordan Hymers Sponsored by Elan Construction Ltd.

Regan Kinley Sponsored by Concept Group

Karl Schwarz Sponsored by Elan Construction Ltd.

Taylor Shoup Sponsored by Graham Construction & Engineering LP

Robin Steele Sponsored by Secure Mechanical & Electrical

Michael Thompson Sponsored by Graham Construction & Engineering LP

Nathaniel Walker Sponsored by Executive Millwork Inc.

The CCA Education Fund presented six $2,500 scholarships to fourth year students in SAIT’s BSc.

Construction Project Management in recognition of a completed “Capstone Project’ that

demonstrates the skills and knowledge they acquired in their degree. The scholarships were

awarded to:

Rob Dvorack

Danielle Lambert

Adam Morstad

Jay Redekop

Mark Uniat

Emily Ward

The CCA Education Fund supported the Dual Credit Carpentry Program; a partnership between

SAIT, the CBE, CSSD, and the CCA; by providing $50,000 ($25,000 each - CBE and CSSD) for two

tool cribs including tools, in addition to $6,400 for PPE for 32 students. The CCA Education

Fund expects to provide an ongoing annual contribution of $6,400 for PPE.

The CCA Education Fund supported the Women in Construction committee with two $1,000

Scholarships for women in the construction industry in Alberta. One scholarship is awarded to

an apprentice, and the other to a Construction Management, Engineering, or

Architecture/Design student. The recipients in 2015 were:

Whitney Owen of Executive Millwork Inc.

Emma Schmidtz of Graham Construction & Engineering LP

I would like to thank MIKE D’ATTOLICO of West Air Sheet Metal Ltd. for his service as a trustee

of the CCA Education Fund; Mike has stepped down today. He was a CCA Education Fund

Trustee since the inception of the Education Fund. Replacing Mike D’Attolico will be Tyler

Bungay, President of Botting and Associates.

Throughout 2015 the CCA Education Fund provided a total of $74,000 in scholarships and

bursaries, in addition to $56,400 for the Dual Credit Pre-Employment Carpentry Program.

Thank you to all the CCA members who so generously contributed. I encourage you all to

continue to support the Education Fund and invest in individuals pursuing a career in

construction or furthering their education in construction.

Todd Poulsen

2015 CCA Education Fund Chair

Calgary Construction Association Education FundFinancial Statements

For the year ended December 31, 2015

Contents

Independent Auditor's Report 2

Financial Statements

Statement of Financial Position 3

Statement of Operations 4

Statement of Changes in Net Assets 5

Statement of Cash Flows 6

Notes to the Financial Statements 7 - 9

Calgary Construction Association Education FundStatement of Operations

For the year ended December 31 2015 2014

RevenueGolf tournament $ 98,630 $ 95,746Interest income 8,681 5,617

107,311 101,363

ExpendituresCareers in Construction video and microsite 36,047 -Golf expenditures 30,920 29,122Calgary Board of Education Dual Credit Carpentry donation 28,200 -Calgary Catholic School District Dual Credit Carpentry donation 28,200 -CCA member scholarships (Note 2) 16,000 6,000S.A.I.T. Construction Project Management awards (Note 2) 15,000 -S.A.I.T. scholarships (Note 2) 4,000 4,000CCA Youth Employment Program scholarships (Note 2) 2,500 4,500Women in Construction scholarships (Note 2) 2,000 -

162,867 43,622

Excess (deficiency) of revenue over expenditures for the year $ (55,556) $ 57,741

The accompanying notes are an integral part of these financial statements.

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Calgary Construction Association Education FundStatement of Changes in Net Assets

For the year ended December 31

2015 2014

Balance, beginning of year $ 757,354 $ 699,613

Excess (deficiency) of revenue over expendituresfor the year (55,556) 57,741Balance, end of year $ 701,798 $ 757,354


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Calgary Construction Association Education FundStatement of Cash Flows


Cash flows from operating activitiesExcess (deficiency) of revenue over expenditures for the year $ (55,556) $ 57,741Change in non-cash working capital items

Increase in prepaid expenses (3,500) -Due from Calgary Construction Association 67,519 (53,824)

8,463 3,917

Cash flows from investing activitiesShort-term investment redemptions 68,730 509,000Short-term investment purchases - (125,092)

68,730 383,908

Increase in cash and cash equivalents during the year 77,193 387,825

Cash, beginning of year 575,405 187,580

Cash, end of year $ 652,598 $ 575,405


6

Calgary Construction Association Education FundNotes to the Financial Statements

December 31, 2015

1. Summary of significant accounting policies Nature of operations The Education Fund was established in 2001 to provide

scholarships and awards for member firms, employees,dependents and students. The Education Fund is a registeredcharity.

Basis of accounting These financial statements have been prepared bymanagement in accordance with Canadian accountingstandards for not-for-profit organizations ("ASNPO").

Use of estimates The preparation of financial statements in accordance withASNPO requires management to make estimates andassumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities atthe date of the financial statements and the reported amountsof revenues and expenses during the reporting period. Actualresults could differ from those estimates and may have animpact on future periods.

Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bankbalances, term deposits, investments in high interest savingsaccounts and investments with maturities of three months orless.

Short-term investments Short-term investments consisted of investments in treasurybills with maturities less than one year and greater than threemonths.

Revenue recognition The Education Fund follows the deferral method of accountingfor contributions. Funds received for the golf tournament,which consist of donations and sponsorship fees, are recordedwhen received unless otherwise designated by a contributor.Other revenue which includes interest income earned onshort-term investments is recognized when earned.

Financial instruments A financial asset or a financial liability is recognized when theEducation Fund becomes a party to the contractual provisionsof the financial instrument. All financial instruments areinitially measured at fair value and subsequently at cost oramortized cost, except for short-term investments which aremeasured at fair value.

Financial assets are tested for impairment when changes incircumstances indicate that the asset could be impaired.Transaction costs on all financial instruments are expensed asthey are incurred.

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December 31, 2015

2. Commitments

During the year the Education Fund committed to annually award eight $2,000 scholarships to anyemployee or an employee's family member whose employer is a member firm of the CalgaryConstruction Association, four $1,000 S.A.I.T. scholarships, and six $2,500 scholarships to 4th yearstudents registered in the Construction Project Management program at S.A.I.T. The Education Fundalso awards eight $500 scholarships to individuals who have completed their Youth EmploymentProgram (YEP) work experience and two $1,000 Women in Construction scholarships. The EducationFund has also committed to creating two $1,750 scholarships to first-year students entering the Schoolof Construction or the School of Manufacturing at S.A.I.T. and six $2,500 scholarships for UofCengineering students who have completed an internship with a CCA member firm.

3. Due from Calgary Construction Association

The Education Fund was involved in the following related party transactions during the year endedDecember 31, 2015.

2015 2014

Due from Calgary Construction Association $ 45,700 $ 113,218

This balance is unsecured, non-interest bearing, due on demandand includes the following transactions: Proceeds less expenditures relating to the annual golf

tournament collected by the Calgary Construction Association onbehalf of the Education Fund $ 67,710 $ 66,624

Interest income 219 - Scholarships paid by the Calgary Construction Association on

behalf of the Education Fund (39,500) (14,500) Donations to Calgary Board of Education and Calgary Catholic

School Division for the Dual Credit Carpentry Program (56,400) - Development of Careers in Construction video and microsite (36,047) - Prepaid expense (3,500) - These transactions are in the normal course of operations and are measured at the exchange amountwhich is the amount of consideration established and agreed to by the related parties.

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December 31, 2015

4. Financial instruments

The Education Fund holds various forms of financial instruments. The nature of these instruments andthe Education Fund's operations expose the Education Fund to credit risk, interest rate risk andliquidity risk.

(a) Credit riskCredit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. Credit risk arises from the fact that asubstantial portion of the Education Fund's cash and short-term investments are held with onefinancial institution and, as such, the Education Fund is exposed to the risks of that institution.

(b) Interest rate riskInterest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Education Fund is exposed to interestrate fluctuations on variable interest rates on short term investments. The Education Fundinvests excess cash into GIC's and high interest savings accounts with terms of one year or less.

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CALGARY CONSTRUCTION ASSOCIATION

2015 ANNUAL REPORT

CALGARY CONSTRUCTION ASSOCIATION 2015 BOARD OF DIRECTORS

EXECUTIVE Stephanie Roll Chair Frederick Vine Senior Vice-Chair Terry Bateman Vice-Chair Chris Bardell Vice-Chair Robert Neufeld Secretary-Treasurer Fabrizio Carinelli Immediate Past Chair Dave Smith President DIRECTORS Ravi Abraham Consulting Engineers of Alberta Colin Aitken Director at Large Chris Bardell Calgary General Contractors Association Bill Black Alberta Roofing Contractors Association Rob Bromberg Director at Large Tyler Bungay Director at Large Andy Carr Director at Large Michael Cojocar Consulting Architects of Alberta Kim Connell Director at Large Wellington Evans Sheet Metal Contractors Association Todd Garstad Canadian Institute of Plumbing & Heating Scott Gibson Director at Large Scott Grobel Mechanical Contractors Association Shaun Hohman Canadian Bar Association Serena Holbrook Masonry Contractors Association – Southern Region Dave Kinley Director at Large Paul Knowles Director at Large Wayne Niddrie Architectural Millwork Manufacturers Association of Canada Todd Poulsen Director at Large John Reitmeier Glass & Architectural Metals Association Bob Robinson Director at Large Larry Shoesmith Construction Specification Canada Jordan Teed Alberta Floor Covering Association Jack Vanier Reinforcing Steel Institute of Alberta Dwayne Wallace Director at Large Scott White Electrical Contractors Association of Alberta Barry Young Alberta Ready Mixed Concrete Association Andrew Zagorski Surety Association of Canada – Western Canada

2015 – CCA Chair’s Report

I have been honored to have spent this past year leading your 2015 Board of Directors. The commitment and dedication that they provide for the betterment of the Calgary Construction Association and our collective industry make me extremely proud and assured that we are making headway on many fronts. Over the years your board has confirmed the importance of education for industry and the Calgary Construction Association continues with many initiatives supporting careers in construction. We excelled once again this past year, unprecedented in Canada, by providing significant scholarship funds and program support as follows: New Scholarships: In previous years the CCA donated $25,000 to SAIT for facility and equipment upkeep. However, in 2015, $50,000 was donated for the purpose of creating new scholarships to commemorate 2016 being SAIT’s centennial year. This donation was matched by the Government of Alberta as part of their Access to the Future Fund. The resulting $100,000 will create the Calgary Construction Association Centennial Awards. These are two scholarships of $1,750 to be offered to one male and one female entering their studies in the construction industry. This award will be offered in perpetuity. The CCA Education Fund has also created six scholarships of $2,500 each for University of Calgary Engineering Students who have completed an internship with a CCA Member firm. Existing Scholarships & Bursaries: This summer CCA proudly recognized SAIT’S first graduating class of the four year Construction Management Bachelor of Science Degree. This past year our association awarded scholarships in this program and enhanced our involvement through another $15,000 to six high achieving student graduates. SAIT “Technologies” Four - $1000.00 bursaries SAIT “Construction Project Management Degree” Six -$2,500.00 bursaries W.I.C. – Two - $1,000.00 scholarships “CCA – Member Employees” Twelve - $2,000.00 scholarships “CCA’s Youth Employment Program” Eight - $500.00 scholarships “Alberta Apprenticeship and Industry Training” Twenty five - $1,000.00 scholarships

Dual Credit Carpentry: In partnership with SAIT, the Calgary Board of Education, and the Calgary Catholic School District, the CCA has helped to create the Dual Credit Carpentry Program. In 2015, 16 high school students from the each school board attended SAIT part time to take a Pre-Employment Carpentry course. After three semesters, students will graduate with their high school diploma and receive a certificate of completion for Pre-Employment Carpentry. The CCA had donated $25,000 for tools and a tool crib and $3,200 for PPE to each school board to ensure the program was financially viable. The total donation was $56,400. Each school board will have a new intake in 2016, and the CCA will continue to donate $3,200 annually for PPE to each school board to ensure the safety of the students. The above scholarships and program funds are made possible through memberships’ support of our annual Education Fundraising Golf Tournament. This year’s sold out event was held at the beautiful Carnmoney Golf and Country Club. Participants enjoyed a fantastic day of sunshine and camaraderie and ultimately raised a record $66,610.00 bringing the total raised since inception of the Education Fund to $1.4 million. These funds and others enable the CCA and the CCA Education Fund Trustees to support the above mentioned construction related scholarships and bursaries. Career EXPO, Education & Career Development Our 9th annual, and very successful “Career EXPO” was held mid-April. This event provided 2,600 enthusiastic High School students and educators with a fantastic opportunity to explore many of the 49 construction trade booths. Each booth was set up to engage the students in a real hands on experience or with information about their path for careers in the trades. The value that industry puts on marketing to youth amazes me. The calculated value of the volunteer support for this event alone is outstanding and is estimated to be in excess of $225,000.00. Thank you to all the sponsors and to the many volunteers who selflessly donated their time and energy to make this event such a success once again. To further stimulate interest in pursuing a career in the Construction Industry our Career Development Committee put the finishing touches on a video called, “Careers in Construction”. The professionally produced video is geared towards providing 16 – 25 year olds with an insight into the limitless possibilities available when choosing Construction as a rewarding career. We launched a construction career microsite “Portal” where future construction workers can find a wealth of information on careers in construction. CCA’s unique Youth Employment Program, which is the only one of its kind in Canada found work experiences for 34 youth who have commenced to build their career in construction. I want to encourage all CCA members to consider utilizing the YEP program which provides for

prescreening prior to the three week work experience. Thank you to all those members who have found value in this program. In addition to education for youth, the Calgary Construction Association offered 33 construction related courses/seminars in 2015, up from 22 in the previous year. These courses are often sold out very quickly which indeed not only indicates the need but also quality of the instructors and information being presented. The CCA is extremely proud and excited to be the first in Canada to host a three day Conference and Training Plan that is presented by the Lean Construction Institute – Canada. Lean is a topic that is quickly gaining momentum in construction and one that I am very committed to as there is incredible opportunity to become more efficient in our industry. Look for the information and I urge you to attend this event on April 6 - 8, 2016. Calgary continues to lead the country in Gold Seal Certification demonstrating an ongoing commitment to professional development. This certification is achieved with industry experience combined with completing several educational sessions. The Gold Seal program is administered by the Canadian Construction Association with the help of our association. I would like to personally congratulate all of the Gold Seal recipients this year. Your Association will be announcing another Gold Seal Designated Project this coming year so stay tuned! Women in Construction I am pleased that CCA Women in Construction committee continues to provide excellent opportunities for women to have some fun, network, learn, and support one another. In January and again in October we hosted two well attended educational “lunch & learns" that focused on collaboration and empowerment. The third annual Women in Construction Golf Tournament had 125 enthusiastic golfers play a 9 hole best ball ”GREEN” tourney that raised some funds for the Highbank’s Society. This organization provides young mothers affordable housing and a nurturing environment while promoting continuing education and counselling on a career path. Also at the tournament we presented two - $1,000 Scholarships for Women pursuing careers in the trades. Through these Women in Construction events the goal is to stimulate interest for women in construction and facilitate opportunities to connect, support one another and to recruit new women to the industry. With females currently making up only 14% of the construction workforce we have a tremendous opportunity to draw on an underutilized talent pool. Government & Collaboration Prompt payment has been high on the radar with discussions and action plans acted upon, Nationally, Provincially and Civically. The Canadian Construction Association devoted their 2015 Industry Summit in September entirely to this topic. They brought construction representatives from across the country to better understand and find solutions to this pressing issue. The Calgary Construction Association will soon commence with the development of a

“Best Practice Guide for Prompt Payment” which will bring this issue of Prompt Payment to all the OAEC partners. The City of Calgary and Alberta Infrastructure have prompt payment on our joint agendas and it was openly discussed at the City’s 2016 Partnering with Industry Symposium communicating their commitments to evaluating and streamlining their payment processes. The CCA has an extremely knowledgeable committee who continue to work with The City of Calgary on the review of various contract documents. To date the committee has reviewed the City’s “Construction Management” contract, the “RFQ/RFP” document along with “Request for Tenders.” The next review will commence on The City’s Standard General Conditions” document. The CCA and the City are ecstatic that Industry is seeing the results of the past collaborative efforts through a significant reduction in the number of weeks it is taking to receive approval on Prime Contractor Pre-Qualifications. We will be publishing these positive results once the City finalizes their data. For the fourth consecutive year we hosted the OAEC (Owners, Architects, Engineers and Contractors) “Change is Possible through Collaboration” workshop on February 24th. Our opening session “Lean Up Your Life” took lessons learned from applying lean construction principles and related them back on how to apply them not only to jobsites but also to our everyday lives by recognizing and reducing inherent wastes. This was followed by four “How-To” sessions: 1) How to Build a Team with Different Mindsets and Hats 2) How to Attract Youth as Successors 3) How to be Ethical in the Construction Industry and 4) How to Determine the Right Project Delivery Method for Your Project. The attendance of over 175 individuals from all four sectors was fantastic. At the end of the day it was very apparent how highly valued the collaborative communication was to all who attended the OAEC IV workshop. You will be reading and hearing about a really new and exciting initiative that will further help develop future Construction Leaders: the YCLC. They are the Young Construction Leaders Committee. Young and restless, they are determined to make a positive difference for the Calgary Construction Association and Construction Industry. I’ve only touched upon a handful of events that the Calgary Construction Association has been instrumental in over the past year. There is so much more and for this and everything that is not covered, I truly would like to thank the CCA’s “Dave Smith” and his hardworking team for their support and guidance. As well I’d like to recognize and thank our membership for the limitless energy, time and resources donated to creating the industry that we can all be very proud of as we continue to be leaders building our future. Lastly a heartfelt thanks to you my fellow Board Members, you made it fun, challenging, and a year that proved to be so worthwhile. Stephanie Roll CCA 2015 Chair

2015 - CCA PRESIDENT’S REPORT

THE CHALLENGE OF CHANGE

2015 proved to be a successful year for the Calgary Construction Association (CCA) considering

all that was happening to Alberta’s economy. The City of Calgary building permits for 2015

came in at $6.29 billion, down only 3% from the previous year (2014 - $6.50 billion).

The CCA continues to collaborate with Owners and Design Consultants, which proves to be very

beneficial. As a result of the 2014 OAEC Workshop, two ad-hoc committees were formed from

the OAEC partners. The first ad-hoc group developed a new one day seminar on how to be a

GREAT LEADER called “Modeling the Way for Great Leadership.” The pilot seminar was given to

twenty industry leaders representing owners, architects, engineers and contractors to ensure

the course content was the best it could be. The second ad-hoc committee, again with

representation from all four OAEC partners has a much greater task, and that is to work

towards full integration by the OAEC in embracing and utilizing BIM technologies.

In addition to the two above noted ad-hoc committees the CCA formed another committee to

review the CCA Cold Weather Construction Manual to update the best practices when building

in cold weather. Back in the mid 90s when CCA developed the guide the CCA in partnership

with other local construction associations did a cross country tour offering cold weather

construction techniques, tips and how to save money. This will be done once again in the fall of

2016 as several construction associations have already indicated an interest.

The CCA recognized the newly formed Lean Construction Institute – Canada which endorses

collaboration by all those involved in the design and construction of structures. CCA will work

closely with the LCI-C in hosting the country’s first ever conference here in Calgary. The

association will be connecting with the OAEC to establish a “Lean Community of Practice” which

will establish best practices and host sessions on how to be more efficient by utilizing Lean.

Years ago Calgary was also the first city in the country to host the initial LEED conference.

CCA Chair Stephanie Roll led the initiative for your industry association to review its Bylaws and

review the governance of the organization. This task of reviewing the Bylaws will be completed

in the near future.

CCA’s number one service COOLNet Alberta provided the construction industry with contract

tender documents for 3,781 projects throughout Alberta in 2015, up from 3,611 the previous

year. In addition, COOLNet Alberta hired a full time business development manager who has

been promoting the service of COOLNet On-demand, which allows for contractors to post their

projects out for tender by invitation only. This venture has been very successful, as in 2014

COOLNet posted only 23 private On-demand projects and in 2015 COOLNet On-demand hosted

337. At the end of 2016 COOLNet’s three year contract will end with Construction

Management Data (CMD). The provincial COOLNet Alberta committee has commenced with

negotiations with CMD and their new owner iSqFt.

In November of 2015 the Charbonneau commission finds corruption widespread in Quebec’s

construction sector. The report outlines the corruption and collusion of government officials,

engineering and contracting firms, along with the involvement of the Mafia and Hells Angels.

Justice Charbonneau reports that strict control measures will be put in place to prevent further

incidences of corruption and collusion in the future. As a result of the commission the question

of integrity in the construction industry is front and center. Your local construction association

here in Calgary introduced a Code of Ethics and Code of Practice in 1989, and the Canadian

Construction Association will soon be introducing an Ethics Course which will be compulsory for

individuals who wish to become Gold Seal Certified.

Once again the members of CCA led the nation for the fourth consecutive year in Gold Seal

certifications. I am very pleased to see the construction community embrace this initiative to

“EXPECT EXCELLENCE” when hiring certified individuals. The City of Calgary are looking at the

feasibility of having all their Project Managers go through the Gold Seal certification process

The process consists of the 3Es, which includes a minimum of five years of Experience, post-

secondary Education along with a minimum pass mark of 75% on the Gold Seal Exam. Coming

soon in 2016, Gold Seal will offer the exams electronically any day of the year no matter where

an individual lives and works, which will improve the efficiency of the process. As a member of

the national Gold Seal Committee for the past seven years, I am very pleased with the progress

that has been made to enhance the Gold Seal Program.

The City of Calgary and the CCA discussed numerous issues throughout 2015 which Chair

Stephanie Roll has outlined in her report. In addition, CCA is working on eliminating

construction waste, better accessibility for the handicapped, and implementing e-bidding on

City projects. Unfortunately The City of Calgary are utilizing MERX over that of COOLNet

Alberta. Alberta Infrastructure will soon use COOLNet’s e-bidding process which is much

preferred by the construction industry over MERX. CCA will continue to work with The City of

Calgary to consider utilizing COOLNet for their e-bidding of construction tenders.

In 2015 CCA entered the world of social media. Since May of 2015 CCA now has over 700

followers on Twitter and over 1,100 on LinkedIn. CCA also utilizes Facebook, YouTube and

Instagram.

The Calgary Construction Centre underwent a major modernization program in 2015 which saw

an entirely new and efficient HVAC system installed along with all new energy efficient LED

lighting. In addition, the Chinook Room used for meetings and educational training received an

entire retrofit along with new furniture. The Calgary Construction Centre which is owned by

the association is one of the best facilities in Canada.

Who would have guessed that after nearly 44 years of the Progressive Conservative Party rule

in the province of Alberta that the NDP would head up the government in this province. While

the platform of the new ruling party in Alberta has changed significantly in 2015, the province

has not when it comes to voting, as two-thirds of Albertans voted for other than the NDP.

At the federal level, Calgary’s Stephen Harper, the sixth longest serving Prime Minister in

Canada’s history, after heading-up the country for nine years and two hundred and seventy-one

days lost to the young Liberal Justin Trudeau, a former school teacher who became Canada’s

23rd Prime Minister. The young Trudeau is now following in his father’s footsteps, and now

finds himself shaking hands with the likes of world leaders, such as U.S. President Barack

Obama.

The federal Finance Minister Bill Morneau has recently revealed that the federal government’s

most recent plan will put Canadian taxpayers deeper into debt that was previously promised

prior to the election. The Liberal pledge to cap deficits at $10 billion a year will not hold true, as

on March 22nd, the day of CCA’s 71st Annual General Meeting, it is expected the 2016-17 deficit

will be projected to hit $30 billion. It appears the Liberals have no shame as all that money will

be added to the current debt of $616 billion.

In recent meetings in the U.S., Trudeau is quoted as saying “it’s wonderful to see our American

friends and partners share and are working on the exact same priorities” as Canada. Well when

will the young Trudeau awaken and realize that Obama’s environmental initiatives have

attached Alberta’s “dirty and destructive” resources and spearheaded opposition to pipeline

construction. Does Trudeau realize the Americans are certainly not talking about a carbon tax

or that the Americans are signing contracts and shipping their oil and LNG to the

world…including Canada.

While it is nice to be “ENVIRONMENTALLY GREEN,” reality is pipelines are needed to get

Alberta’s resources to tidewater, whether it be the west or east coast or both. Discussions on

how to make this happen have been going on now for over ten years. How is it that even when

the National Energy Board approves a pipeline, further public reviews are being held.

Take a look at the $16 billion dollar Energy East pipeline and what it would mean to Canada’s

economy; 90,000 person years of employment, $6.3 billion in tax revenue over 20 years….and

the project will cost the federal treasury nothing.

How crazy is it that eastern Canada, namely Quebec, would rather import oil from Saudia

Arabia, Algeria, Angola, Mexico, Venezuela, Nigeria, and yes the U.S. over that of Alberta. The

import of oil from these countries is costing Canada on average $8 billion a year. That is

enough money to cover the average salary of 15,000 Canadian teachers for 9 years. With both

Alberta and Saskatchewan’s oil landlocked, Saskatchewan Premier Brad Wall has stated, wait

until we start sending our equalization payments to Quebec via pipeline!

It makes absolutely no sense to finance the economies of other countries, and especially when

the imported product produces more CO2 emissions than that of Alberta’s.

While all Canadians are concerned about the environment and CO2 emissions, how is it, little is

being said about Bombardier, whose products have produced far more CO2 emissions than the

oil sands. And when looking at other industries, the automobile and heavy equipment

manufacturing seems to be absent from the discussions.

While Canada has a large land mass we have a sparse population of only 36 million people. Are

our governments trying to do too much in the reduction of CO2 emissions?

Think about Canada overall and then let’s take a look at China, a country with a population of

1.3 billion, 36 fold to Canada’s population.

In Shanghai (Population 24 million) the Chinese people are buying 5,000 to 8,000 vehicles per

month in that one city alone.

In Calgary we have yet to complete our first ring road, the City of Bejing has 6 ring roads the

longest being over 600 kilometers.

What the City of Vancouver ships over the Pacific Ocean in a year, Hong Kong does the same

volume every 7 days!

While it is reassuring Canada is attempting to resolve our CO2 emissions, is it realistic to think

that will happen by 2030 or 2040 or for that matter 2050!

With Rachel Notley being in power for ten months, the economy has turned south and the

shadow of a recession has engulfed Alberta over the past year as oil prices have plunged, along

with the Canadian Loonie, which finds itself in the seventy cent range. Over the past year

100,000 oil workers have lost their jobs and yet our provincial and federal governments are

more concerned about government spending that will push our debt much higher than

anticipated from their respective election promises. And with Alberta’s new Climate Change

Plan, which includes a carbon tax that Americans are not facing, each individual Albertan will

pay higher costs at the gas pumps, higher heating costs for our homes, which will result in

generating $3 billion more to the provincial government coffers. With Alberta’s population at

just over 4 million, we should be asking what is Alberta’s part in building a greener world?

What are the Americans and Chinese doing?

Canadian politics have certainly changed, the regional divide between the western resource

producing provinces and Laurentian Canada is as deep as ever. In addition, Alberta is not

interested in B.C.’s excess in electricity and B.C. is really not interested in the need for Alberta’s

pipelines. Regional tensions and divisiveness will not build a better Canada.

No one is denying that there are not issues facing society in building sustainable cities and

doing our part, however, let’s collaborate and be innovative in addressing our environmental

issues in a sensible, timely manner.

Joe Clark was the youngest Prime Minister when elected, he was an inspirational leader when it

came to national unity. Former Alberta Premier Peter Lougheed noted that he was an Albertan,

but firstly and more importantly, he was Canadian. Let us all strive to erase our interprovincial

boarders and truly build a “BETTER CANADA” for all Canadians by working together.

Is it not amazing that the Toronto Blue Jays can do more to unite Canada in their run for the

World Series Championship in 2015 than our elected officials can do!

While contractors in Alberta are cautiously optimistic about our future, let’s not forget our past

when Pierre Elliot Trudeau introduced the National Energy Program in 1981, the downturn in

the early 90s, the burst of the “dot-com” bubble at the turn of the century, the bankruptcy of

the Lehman Brothers in 2008 and now most recently the oversupply of oil to the world. In the

year 2004 it was noted “with oil breaking the $55/barrel in October, it is no wonder the energy

giants are forging ahead.” Well 12 years later, we are not too far off $55/barrel of oil, so we

will survive and thrive here in Alberta, we will just have to work smarter together in a smaller

world.

Dave Smith,

CCA President

Calgary Construction AssociationNon-consolidated Financial Statements


Contents

Independent Auditor's Report 2

Financial Statements

Non-consolidated Statement of Financial Position 3

Non-consolidated Statement of Operations 4

Non-consolidated Statement of Changes in Net Assets 5

Non-consolidated Statement of Cash Flows 6

Notes to the Non-consolidated Financial Statements 7 - 12

Schedule 1 - Non-consolidated Expenditures 13

Calgary Construction AssociationNon-consolidated Statement of Operations


RevenueMembership fees $ 1,611,375 $ 1,562,059Rent 279,742 251,061Courses and event revenue 193,042 185,429CCA forms 117,057 101,706Magazine advertising revenue 42,856 44,868Interest income 24,241 24,528Sundry 9,321 11,484Photocopy 9,172 17,171Trade associations 1,320 1,320

2,288,126 2,199,626

Expenditures (Schedule 1) 1,972,227 1,990,897

Excess of revenue over expenditures before the following item 315,899 208,729

Amortization 116,515 76,217

Excess of revenue over expenditures for the year $ 199,384 $ 132,512

The accompanying notes and schedule are an integral part of these non-consolidated financial statements.

4

Calgary Construction AssociationNon-consolidated Statement of Changes in Net Assets


UnrestrictedInternallyRestricted Total

Balance, beginning of year $ 2,311,328 $ 890,159 $ 3,201,487

Excess of revenue over expendituresfor the year 199,384 - 199,384Internally restricted for building fund (Note 10) (25,000) 25,000 -Transfer to unrestricted funds (Note 10) 667,467 (667,467) -

Balance, end of year $ 3,153,179 $ 247,692 $ 3,400,871


5

Calgary Construction AssociationNon-consolidated Statement of Cash Flows


Cash flows from operating activitiesExcess of revenue over expenditures for the year $ 199,384 $ 132,512Adjustments for non-cash items

Amortization 116,515 76,217Accrued interest - (5,926)

315,899 202,803Adjustments for changes in non-cash working capital

Accounts receivable 34,360 (16,205)Inventory (7,620) (159)Prepaid expenses (30,778) (9,376)Accounts payable and accrued liabilities (77,840) 8,289Deferred revenue (Note 5) 515,539 14,756Security deposits (4,202) 1,240Due to COOLNet Alberta (Note 7) 67,456 7,984Due to Calgary Construction Association Education Fund (Note 6) (67,518) 53,824

745,296 263,156

Cash flows from investing activitiesAcquisition of capital and intangible assets (702,612) (579,149)Restricted cash (Note 2) (67,457) (7,984)Short-term investment redemptions 468,637 3,090,000Short-term investment purchases - (1,264,503)

(301,432) 1,238,364

Increase in cash and cash equivalents during the year 443,864 1,501,520

Cash, beginning of year 1,699,517 197,997

Cash, end of year $ 2,143,381 $ 1,699,517


6

Calgary Construction AssociationNotes to the Non-consolidated Financial Statements

December 31, 2015

1. Summary of significant accounting policies Nature of operations Calgary Construction Association (the "Association") is a not-

for-profit organization. The Association provides access totenders and information to members to facilitate tendering,bidding and other administrative and promotional needs. TheAssociation is incorporated under the Societies Act of theProvince of Alberta as a not-for-profit organization and isexempt from tax as such under the Income Tax Act.

Basis of accounting The non-consolidated financial statements have been preparedby management in accordance with Canadian accountingstandards for not-for-profit organizations ("ASNPO").

Controlled entities Controlled not-for-profit organizations are not consolidated inthe Association's financial statements.

Use of estimates The preparation of non-consolidated financial statements inaccordance with ASNPO requires management to makeestimates and assumptions that affect the reported amountsof assets and liabilities and disclosure of contingent assets andliabilities at the date of the non-consolidated financialstatements and the reported amounts of revenues andexpenses during the reporting period. Actual results coulddiffer from those estimates and may have an impact on futureperiods.

Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bankbalances, term deposits investments in high interest savingsaccounts and investments with maturities of three months orless.

Short-term investments Short-term investments consisted of investments in treasurybills with maturities less than one year and greater than threemonths.

Inventory Inventory is stated at the lower of cost and net realizablevalue. Cost is determined on a first-in, first-out basis. Netrealizable value is determined as fair value less selling costs.

Capital assets Capital assets are recorded at cost. Amortization is providedon the straight-line basis, when the assets are available foruse, over the following estimated useful lives:

Asset RateBuildings 20 yearsFurniture and fixtures 7 yearsHVAC system 20 years

Intangible assets The Association capitalizes intangible assets and amortizesthem over their estimated useful life once the internallygenerated capital assets are ready for use.

Impairment of long-lived assets In accordance with CPA handbook section 4431, capital assetsare tested for impairment where impairment indicators arepresent. This would occur when a capital asset no longercontributes to the Association's ability to provide services.

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December 31, 2015

1. Summary of significant accounting policies (continued)

Revenue recognition The Association follows the deferral method of accounting forcontributions. Unrestricted contributions are recognized asrevenue when received or receivable if the amount to bereceived can be reasonably estimated and collection isreasonably assured.

(i) Membership fees

Membership fees are recognized as revenue when received orreceivable if the amount to be received can be reasonablyestimated and collection is reasonably assured. Membershipfees paid in advance are recorded as deferred revenue.

(ii) Rental

Rental revenue is recognized as earned on a monthly basis andwhen collection is reasonably assured.

(iii) Other

Other revenues consists primarily of user fees for goods and/orservices purchased by members and is recognized when thegoods and/or services are provided.

Employee future benefits The Association will make contributions equal to 100% of theemployee's annual contributions to the Registered RetirementSavings Plan for all employees with service over one year.

Financial instruments A financial asset or a financial liability is recognized when theAssociation becomes a party to the contractual provisions ofthe financial instrument. All financial instruments are initiallymeasured at fair value and subsequently at cost or amortizedcost, except for short-term investments which are measuredat fair value.

Financial assets are tested for impairment when changes incircumstances indicate that the asset could be impaired.Transaction costs on all financial instruments are expensed asthey are incurred.

2. Restricted cash

Restricted cash relates to amounts collected on behalf of COOLNet Alberta (Note 7) and is notavailable for disbursement on the Association's expenditures.

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December 31, 2015

3. Capital assets

2015 2014

CostAccumulatedAmortization Cost

AccumulatedAmortization

Land $ 311,256 $ - $ 311,256 $ -Buildings 2,391,184 2,078,901 2,364,323 2,061,552Furniture and fixtures 657,069 590,116 618,671 570,720HVAC system 1,355,452 115,621 728,099 47,849

4,714,961 2,784,638 4,022,349 2,680,121

Net book value $ 1,930,323 $ 1,342,228

4. Intangible assets

2015 2014

CostAccumulatedAmortization Net Net

Website $ 59,191 $ 31,994 $ 27,197 $ 29,195

5. Deferred revenue

December 31,2014

RevenueRecognized

FundsReceived

December 31,2015

A Membership $ 84,535 $ (84,535) $ 336,870 $ 336,870AA Membership 41,490 (41,490) 159,800 159,800AAA Membership 107,981 (107,981) 252,875 252,875

$ 234,006 $ (234,006) $ 749,545 $ 749,545

At December 31, 2015 deferred revenue is comprised of 350 prepaid 2016 memberships (2014 - 112prepaid 2015 memberships).

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December 31, 2015

6. Controlled entity

The Calgary Construction Association Education Fund (the "Education Fund") is a separate entity 100%owned by the Association. The Education Fund is considered a registered charity and exempt from taxas such under the Income Tax Act. The Association pays scholarships on behalf of the Education Fund.The Association transfers certain donations or funds raised to the Education Fund. Since both partiesare governed by the same Board of Directors, have the same employees, and are located in the samepremises, there is no actual cash transferred. The financial statements of the Education Fund havenot been consolidated with the Association's but are instead available upon request to the users of theAssociation's non-consolidated financial statements.

The Association was involved in the following transactions with the Education Fund:

2015 2014

Due to Calgary Construction Association Education Fund $ 45,700 $ 113,218 - -

This balance is unsecured, non-interest bearing, due on demandand includes the following transactions: Proceeds less expenditures relating to the annual golf

tournament collected on the Education Fund's behalf $ 67,710 $ 66,624 Interest income 219 - Scholarships paid by the Association on the Education Fund's

behalf (39,500) (14,500) Donations to Calgary Board of Education and Calgary Catholic

School Division for the Dual Credit Carpentry Program (56,400) - Development of Careers in Construction video and microsite (36,047) - Prepaid expense (3,500) -

These transactions are in the normal course of operations of the Association and are measured at theexchange amount, which is the amount of consideration agreed to by the related parties. Thefinancial summary of the Education Fund at December 31, 2015 and 2014 is as follows:

2015 2014

Financial PositionTotal net assets $ 701,798 $ 757,354

Statement of OperationsRevenues $ 107,311 $ 101,363Expenses (162,867) (43,622)

Excess (deficiency) revenue over expenses $ (55,556) $ 57,741

Cash FlowsIncrease (decrease) in cash from operations $ (55,556) $ 57,741

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December 31, 2015

7. Due to COOLNet Alberta

The Association on behalf of a partnership of eight local construction associations in the province ofAlberta (Calgary, Edmonton, Fort McMurray, Grande Prairie, Lethbridge, Lloydminster, Medicine Hat,and Red Deer), accepted responsibility of managing the financial affairs of COOLNet Alberta in Marchof 2010. COOLNet Alberta is a secure file transfer service for construction documents. A separatebank account will be established for all business affairs of COOLNet Alberta and the money owed willbe transferred to the newly established bank account.

The Association was involved in the following transactions with COOLNet:

2015 2014

Due to COOLNet alberta $ 446,288 $ 378,832

This balance is unsecured, non-interest bearing, due on demand,and includes the following:

Membership and usage fees collected on behalf of COOLNet $ 360,395 $ 194,223Expenses paid on behalf of COOLNet 292,939 142,569

These transactions are in the normal course of operations of the Association and are measured at theexchange amount, which is the amount of consideration agreed to by the related parties.

8. Government Remittances

Included in accounts receivable are government remittances receivable of $0 (2014 - $15,563) andincluded in accounts payable are government remittances payable of $42,621 (2014 - $10,619).

9. Commitments and Contingencies

As at December 31, 2015, the Association's total obligation, under a lease agreement for officeequipment that expires in August 2018 is as follows:

2016 $ 6,5882017 6,5882018 4,941

$ 18,117

The Association has a signed heat maintenance contract that will end in March, 2017. The paymentsare expected to total approximately $14,435.

Under the terms of the Association's by-laws, the Association indemnifies individuals who have acted atthe Association's request to be a director and/or office of the Association, to the extent permitted by law,against any and all damages, liabilities, costs, charges or expenses suffered by or incurred by theindividuals as a result of their service. The claims covered by such indemnifications are subject tostatutory and other legal limitation periods. The nature of the indemnification agreements prevent theAssociation from making a reasonable estimate of the maximum potential amount it could be required topay to beneficiaries of such indemnification agreements.

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December 31, 2015

10. Restricted Building Fund

During the year, the Association restricted $25,000 (2014 - $222,000) for continued improvementsbeing made to the building from the unrestricted net assets to the restricted net assets. During theyear, $667,467 (2014 - $575,760) was paid out of the restricted net assets for building upgrades.Further transfers from the unrestricted net assets to the restricted net assets will be reviewed on anannual basis.

11. Employee Benefits

As described in Note 1, the Association has a contributions matching plan. During the year, $33,972(2014 - $24,268) was contributed to the employee Registered Retirement Savings Plan.

12. Financial Instruments

The Association holds various forms of financial instruments. The nature of these instruments and theAssociation's operations expose the Association to credit risk, interest rate risk, and liquidity risk.

(a) Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the otherparty by failing to discharge an obligation. Credit risk arises from the fact that a substantial portionof the Association's cash and short-term investments are held with one financial institution, and assuch, the Association is exposed to the risks of that institution. In addition, the majority of theaccounts receivable are due from customers in the construction industry. b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Association is exposed to interest ratefluctuations on variable interest rates on short term investments. The Association invests excess cashinto high interest savings accounts with terms of one month.

13. Comparative figures

The financial statements have been reclassified, where applicable, to conform to the presentationused in the current year. The changes do not affect prior year earnings.

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Calgary Construction AssociationSchedule 1 - Non-consolidated Expenditures


Audit $ 19,235 $ 24,596Bad debt expense 1,462 12,444COOLNet fees 38,650 38,025Cleaning and maintenance 53,669 54,687Courses and event expenses 303,234 281,849Insurance 12,649 12,202Meetings and Career Expo 94,599 91,499Miscellaneous 47,053 51,248National and provincial dues 291,349 280,647National convention 15,000 15,000Photocopying 13,276 13,247Postage and courier 7,165 7,600Property taxes 63,390 50,924Public relations 59,970 122,783Repairs and maintenance 52,483 60,704S.A.I.T. building fund contribution 25,000 25,000Salaries and benefits (Note 11) 746,066 699,700Stationery and supplies 21,703 24,150Telephone and internet 24,996 16,676Utilities 68,304 94,398Website hosting fee 12,000 12,000Youth employment program 974 1,518

$ 1,972,227 $ 1,990,897

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Alberta Construction Association 1

2015 – ACA Report Government Action Committee Advocacy Priorities

Infrastructure Spending / Government as a Client: In spring 2015, ACA developed an election website to share industry views with media and the public, and was pleased with the traffic generated. With the election of the new provincial government in May, ACA advocacy focused on educating both the Government and the Opposition on key issues and recommendations. ACA corresponded with key Cabinet Ministers to provide recommendations that fell within their Ministerial mandates. ACA Chair Dave Kinley and Senior Vice-Chair Paul Verhesen met new Minister Mason and Deputy Minister Barry Day July 2nd, apparently one of the earliest stakeholder meetings for the Minister. Dave explained his responsibility as Chair to share industry perspectives on behalf of the membership and offered ACA as a vehicle for the Minister to seek feedback from industry. Minister Mason appreciated the opportunity to meet with ACA as the provincial voice for Alberta’s construction industry and looked forward to maintaining regular dialogue. ACA shared highlights of a long history of successful partnerships with the Government of Alberta and summarized priorities shared with our partners the Consulting Architects and Consulting Engineers. ACA was pleased that the Ministry confirmed that existing partnerships to modernize procurement, adopt standard documents with minimal supplementary conditions, and regularly discuss industry capacity will continue. The Minister requested ACA submit its thoughts on the importance and impact of sustained, consistent Provincial investment in infrastructure as input for consideration in the Province’s long term capital plan. ACA recommendations include: 2015-2018 Capital Budget be maintained at 6-$7 billion per year. This amount reflects per capita investment averaged over the business cycle and adjusted to remove the effects of inflation and to address current levels of population. ACA’s request to meet with the Government appointed capital budget consultant David Dodge was successful. In response to a request from the Minister mid-September, ACA responded that sufficient capacity existed to handle at least 20% additional work. ACA was pleased that the October 26 2015 Capital Budget plans spending ranging $5.6 - $7.7 billion per year for the next 4 years.


Following up on his commitment for regular dialogue, Minister Mason met November 4th with associations and labour to discuss the Budget and issues. ACA shared its support for the level of investment with an expression of concern that borrowing be prudent with a solid plan for repayment. As a result of the dialogue, the Minister also requested industry craft a paper on innovation. ACA coordinated development of the paper which was submitted to the Minister the first week of December. ACA shared its Capital Recommendations with all MLAs and held meetings in July and October with the Opposition Shadow Ministers for infrastructure and Transportation. ACA is now in regular dialogue with the Opposition to assist with their review of Budget Estimates and other Government documents. ACA also developed a slide deck to educate MLAs about the industry, and tested the slide deck with an Opposition MLA October 27. ACA will look for opportunities to use the deck with other MLAs. The second major focus was on ACA working with Alberta Infrastructure to ensure AI as a preferred client for industry, specifically in adopting CCDC contract documents with minimal Supplementary Conditions. Despite significant effort in review and dialogue, Alberta Infrastructure advised ACA August 26th that it could not make the existing CCDC work for them, even with Supplementary Conditions. Instead, both parties agreed in an October 22nd meeting to focus on selected issues as follows: 1. Confirmation of more frequent dialogue with Barry Day and the Minister. 2. Prompt pay and progressive release of holdback in AI contracts 3. Total completion and project closeout 4. Educational initiatives and ongoing dialogue industry with AI procurement and project management staff. 5. Incomplete documents 6. FOIP and other AI contract compliance workshops Draft contract language concerning insurance provisions, prompt pay, and progressive release of holdback, was reviewed December 11th with revisions to be reviewed early in 2016.

Workforce ACA Chair Dave Kinley met with Job, Skills, Training / Labour and Advanced Education Minister Lori Sigurdson August 4th (again, apparently one of the earliest meetings the Minister held with an industry group). Dave explained his responsibility as Chair to share industry perspectives on behalf of the membership and offered ACA as a vehicle for the Minister to seek feedback from industry.


ACA shared highlights of a long history of successful partnerships with the Government of Alberta in the areas of apprenticeship, employment, and safety. The Minister was interested to learn of association partnerships with the school system, including with the College of Alberta School Superintendents to promote partnerships between industry and school districts. ACA also expressed its strong support for public delivery of Alberta’s apprenticeship training system. Subsequent dialogue with Apprenticeship in November on key issues revealed that:

- joint indentureship - not on radar - public funding of private apprenticeship training - consultations early 2016

consider demand and capacity as a first step. Most union training facilities have very limited capacity.

- mandating apprentice use - not on radar, would work to develop win-win industry / government

With the recession and change in provincial and federal governments, the role of the ACALS (Alberta Coalition for Action on Labour Shortages) has become uncertain. ACA will monitor to determine whether to continue this relationship in 2016. Promotion of a skilled workforce is a central service of the association. • The Construction Careers Promotion Committee (CCPC) of which ACA was a member decided to wind up and invest the remaining funds in a new Skills Alberta initiative. ACA is a signatory to this agreement. • In November 2015, ACA’s Board approved reallocating $6,000 within the previously approved project with the College of Alberta School Superintendents to pilot projects with junior high schools. The pilots will be explored in 2016. • Each year, ACA sponsors the Alberta Apprenticeship and Industry Training Board Awards. In addition to sponsoring the event, ACA sponsors the Top Carpenter and Top Apprentice. Mr. Robert MacGarva was the recipient of the Top Carpenter for 2013 and Mr. Andrew Berger was the recipient of the W.G. Alexander Memorial award winner for Top Apprentice. Each received a $500 award for each and a commemorative glass sculpture. • ACA awarded 32 apprentice scholarships in 2015. • ACA continued to participate in the Workforce Forecasting Committee.

Other ACA provided input to the Royalty Review and the Climate Change Panel. At COAA’s request, ACA also drafted a letter of support for increasing heavy haul loads. ACA partnered with the Alberta Chapter of the Canada Green Building Council in April 2015 to offer seminars / webinar on the new energy efficiency Code. Since that time, local construction associations have offered more in-depth sessions for their members.


ACA would like to thank Lee Phillips for his diligence in serving as ACA’s rep on the Building Technical Sub-Council of the Alberta safety Codes Council. Lee has brought forward a number of issues for member input:

- Professional Responsibilities Working Group (ACA thanks Bob Schuett for representing ACA)

- Construction site accessibility and access ACA’s Executive Director participated in two meetings with counterparts from B.C., Saskatchewan, and Manitoba to discuss issues of common concern including prompt pay, promotion of standard contracts, advocacy concerning mandating the use of apprentices.


Safety/ WCB Committee In late 2014, ACA coordinated industry responses to a review of Alberta’s OHS Code and to an invitation from the Governments of BC, Alberta, and Saskatchewan to identify cross-border regulatory barriers in OHS compliance. A response from Government on each of these files is now expected in 2016. ACA thanks Denis Poitras (Graham) for assuming the chair of the ad hoc committee on silica. ACA held workshops in each of Calgary and Edmonton to develop silica exposure control plans that involved demolition, drywall, excavation, masonry, and tile sectors. The revised draft document will be reviewed with industry in early 2016. ACA also met with ACSA to seek their input on the types of industry training that could be developed to promote industry adoption of the control practices. OHS has confirmed that they will cost-share worksite testing once practices are in place to determine if these practices allow industry to achieve legislated OELs. ACA partnered in 2014 with Construction Labour Relations, Progressive Contractors, and Merit to fund a legal review of the WCB policy interpretation applying no-fault to employee refusal to undertake modified work. The legal review supported ACA’s position that no-fault should not apply. In summer of 2015, the WCB requested an indefinite adjournment of their request for judicial review of a number of Appeals Commission decisions which overturned the WCB decision to provide benefits where the actions of the worker while on modified duties led to termination with just cause. The Committee agreed with the Medicine Hat Construction Association to approach the WCB to review whether “wear and tear” injuries for older workers should be solely borne by the last employer under which the older worker makes a claim. The discussion with WCB will carry on into 2016. ACA implemented in 2015 a Board recommendation emanating from the October 2014 Retreat to strengthen communications between ACA and LCA representatives to the ACSA Board. Teleconferences with these reps, the ACSA Chair and ACSA Executive Director in advance of each ACSA Board meeting to review the ACSA agenda have been well received. Thanks to Mike Court and Bernal Ulsifer for representing ACA on the Board of Directors of the Alberta Construction Safety Association.


Standard Practices Committee Standard Practices Committee continued in 2015 to focus on Trade Definitions, mandatory annual release of holdback, and the ad hoc committee on prompt payment. The 2015 edition of the Trade Definitions was published in early 2015 and promoted to various stakeholders. ACA approved funds to support the development of a Trade Definitions website and promotional videos, expected to go live in early 2016. A new multi-stakeholder ad hoc committee was formed and the first meeting held August 19, 2015. The ad hoc committee confirmed the key issues and recommended actions to address these issues via four approaches: development of best practices, educational outreach, government relations, and legislative advocacy. The committee recommended the initial focus be on development of best practices. The Prompt Pay committee met December 10th to review draft proposals from Alberta Infrastructure on prompt pay and progressive release of holdback clauses for the AI contract. Dialogue will continue in early 2016 to finalize AI’s proposals. Alberta Health Services has advised ACA that it will be seeking in early 2016 ACA comments on contract revisions. ACA continued to provide in-kind support to aceBIM as the provincial vehicle to promote standard practices for BIM. ACA helped shape aceBIM’s position that BIM adoption should follow national standards that were developed by stakeholders representing owners, design consultants, contractors and suppliers, and that education of these practices should be delivered locally.

March 2016

The following are some of the business highlights from the CCA Board of Directors meetings held March 5-6, 2016 during the CCA Annual Conference in New Orleans, LA.

CCA Action on Prompt Payment

The Outcomes/Recommendations emanating from the September 2015 CCA Industry Summit devoted to prompt payment and cash flow were as follows:

a) The CCA does have a leadership role to play in Canada with respect to industry payment and cash flow issues. CCA needs to establish a clear policy position on payment and payment practices in the Canadian construction industry;

b) The CCA can be a hub or clearing house for sharing prompt payment information and best

practices – domestic and international (e.g. the U.S., Australia, the UK, etc.) - as well as with respect to efforts and developments at the provincial level;

c) There is support for creating new and/or strengthening existing CCDC/CCA standard contracts

and guides that speak to prompt payment including embracing the adjudication process, the right to suspend the work/terminate the contract for breach of the payment terms, and greater transparency as to the flow of funds in the contracting chain;

d) The CCA should not proactively get involved in any provincial initiatives – but participate if

asked, (although likely there would have to be a full consensus of CCA Partner Associations in that Province);

e) There is general support for the CCA to educate the federal government on industry payment

challenges and to support the notion of federal prompt payment legislation applicable to federal government construction contracts only; and

f) The CCA should involve all parties in the contracting chain and the industry in this discussion –

including Owners and Consultants.

Last October, the CCA Board of Directors passed the following motion as a partial response to the foregoing outcomes:

“THAT, CCA work with its Partner Associations, interested stakeholders, and federal contracting authorities, to educate the federal government on the importance of prompt payment and cash

2

flow on federal construction projects, and work together to resolve any concerns, which may include the enactment of federal prompt payment legislation acceptable to the industry.”

Shortly, thereafter a CCA Task Force was established to achieve that objective. At its March 2016 meetings, the CCA Board agreed to the following further course of action for CCA in this regard:

1. Task the new CCA Federal Task Force on Prompt Payment to develop a clear CCA policy position on payment and payment practices in the industry as a first step in its deliberations;

2. CCA staff should establish and maintain a special section on the CCA website to serve as a hub

or source of information on prompt payment information/legislation and best practices;

3. With regard to the recommendation calling for a review of CCDC/CCA standard documents and guides, CCA will update CCA 28 2009 - A Guide to Improving Cash Flow in the Construction Industry, with a view to expanding its scope beyond simply the prime contract level to include best practices, available rights and remedies, etc. for subcontractors/suppliers;

4. The CCA Federal Prompt Payment Task Force has been established to deal with items d) and e)

above. Construction Industry Ethics Course Expected in April

CCA and BuildForce Canada have partnered to produce the first ever national construction industry ethics course. Two modules of the online portion of the new Construction Industry Ethics Course were unveiled at the recent CCA Annual Conference. The Course is expected to be officially launched in April of this year. The Course consists of both an online and a classroom portion. CCA has announced that going forward, the Construction Industry Ethics Course, (i.e. both the online and classroom portions), will be a mandatory part of the educational requirements needed to challenge the national examination in all Gold Seal occupations and designations.

New Policy Statement Endorsed re “Green” Building Certification

CCA members have raised concerns regarding third party certification systems beyond the control of the contractor, especially where owners tie payments to that certification. CCA members feel that owners should seek green building/sustainability objectives through their own project design and specifications utilizing the normal building certification/commissioning processes to measure achievement of green building performance rather than a third party certification system. As a result, the CCA Board of Directors passed the following resolution to form the basis of a new CCA Policy Statement:

3

“CCA supports ‘green buildings’ and green building efficiencies and recommends that these objectives be sought and verified by the parties directly involved in the project through the normal building design, commissioning, and certification processes.”

Task Force to Develop CCA Resource Tools for Corporate Social Responsibility (CSR)

The CCA Business and Market Development Committee endorsed the following two recommendations of the CCA CSR Task Force and extended its mandate to accomplish these:

1. That CCA house on its website educational literature and information on CSR; and 2. That CCA look at developing a CSR How-to-Guide.

Quality of Documents Workshop Results Revealed

CCA convened a series of cross-country workshops concerning the “Quality of Documents” in the construction industry. The findings have been captured in a report. These were revealed at a special session during the recent CCA Annual Conference. The Report’s findings and recommendations will be posted on the CCA website.

Indigenous Engagement Best Practices Guide Expected in June

CCA, together with the Aboriginal Human Resource Council, is in the process of developing an Indigenous Engagement Best Practices Guide focused specifically on the construction industry. The Guide is scheduled to go to the CCA Board for endorsement in June of this year.

Sustainability Task Force Established The CCA Business and Market Development Committee has established a Sustainability Task Force to investigate what proactive steps the construction industry can take on its job sites to reduce waste as a means of achieving the Mission 2030 Initiative, (i.e. eliminate all construction, renovation and demolition waste to landfill by 2030). New Cost-Plus Subcontract Endorsed The Board endorsed a new CCA Standard Cost-Plus Subcontract Form to be published in the next few months. Trade Contractors Guide Updated

The CCA Trade Contractors Council newly updated document entitled: CCA Trade Contractors’ Guide and Checklist to Construction Contracts will be available in the coming weeks.

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CCA 2016 Industry Priorities

The attached list of 2016-17 CCA industry priorities was compiled and accepted based upon input from the CCA Standing Committees and Councils and the CCA Executive Committee/Board of Directors.

By-Law Revisions Approved The following by-law amendments were approved at the CCA Annual General Meeting held March 10, 2016:

1. Increase the maximum size of the CCA Board of Directors to 90 members from 80 members; 2. Permit the election of a 3rd National Vice-Chair; and 3. Permit the Chairs of CCA Special Committees who are not with CCA member firms to sit as full

members of the CCA Board of Directors. New Corporate Member and Affiliate Partner Association

The CCA Board of Directors approved Cox & Palmer as a new CCA Corporate Member. It also approved Merit Canada as an Affiliate Partner Association.

_ _ _ _ _

March 2016

CCA INDUSTRY PRIORITIES FOR 2016-17 BY COMMITTEE/COUNCIL STANDING COMMITTEES Business and Market Development Committee

1. Oversee the development of a National Construction Industry Ethics course by BuildForce Canada.

2. Oversee the development by the Aboriginal HR Council of an ‘Indigenous Engagement Best Practices Guide’.

3. Determine what program(s) CCA should undertake in the area of CSR. 4. Monitor the progress of Mission 2030, (i.e. “zero waste”). 5. Provide seminars on topics addressed in the CCA HR Toolkit and in the CCA Drug and Alcohol

Policy resource material as requested. Gold Seal Committee

1. Review/Retooling of application requirements and accreditation points structure – Gold Seal

Exam and Intern.

2. Review of National Curriculum Standard.

3. Mandatory education – beginning with implementation of Ethics 101 course.

4. Development of a Student Designation.

5. Implementation of online examination.

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6. Marketing and Communication Strategy – increase presence on Social Media, website update,

marketing tools for LCAs.

Industry Advocacy & Regulatory Affairs Committee 1. Promote through advocacy in Ottawa the expeditious implementation of the government’s new

infrastructure commitments. 2. Discourage the government from implementing its platform commitment to reintroduce a

federal Fair Wage Policy, and introduce federal Apprenticeship quotas for federal infrastructure projects.

3. Work in partnership with other national organizations to discourage the government from repealing amendments made by the previous government to the Canadian Environmental Assessment Act, the Navigation Protection Act and the Fisheries Act.

4. Participate in the federal review of the Temporary Foreign Worker Program and encourage the government to build a better pathway to permanent residency for TFWs already in Canada.

5. Monitor the implementation of the Comprehensive Economic Partnership Agreement between Canada and the EU, as well as the Trans-Pacific Partnership Agreement.

6. Promote with the Department of Finance changes to current federal depreciation policy. 7. Participate in the new government’s review of EI programs. 8. Promote the creation of a mobility grant for unemployed workers to seek work outside their

home market. 9. Participate in any government review of the Agreement on Internal Trade. 10. Work with the new government to maintain contractor access to EDC’s Performance

Security Guarantee program until a comparable and acceptable private sector bonding

mechanism exists.

11. Enhance the image of the construction sector with Parliamentarians and senior government officials in Ottawa.

12. Work with other construction stakeholders to promote prompter payment by the federal government.

13. CCA should explore ways and means to work with national stakeholders to promote a more proactive regulatory approach by the Federal Government to the approvals of projects of national significance.

Innovation & Technology Committee 1. Identify, assess and monitor technological and innovative developments and trends that may

impact the Canadian construction industry

2. Promote and advocate industry-led research and innovation and its commercialization

3. Identify opportunities for knowledge sharing and education regarding new technologies and

trends

4. Liaise with outside organizations such as the Institute for BIM in Canada and CCInnovations to

promote the interests of the Canadian construction industry.

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Standard Practices Committee

1. Quality of Documents

To address the concern of the decreasing quality of documents by conducting a series of workshops across Canada, preparing a summary report, publishing the findings and recommending/implementing best practices.

2. CCA Guide on Changes in the Work

To develop a new CCA Guide on Changes in the Work and to submit the final draft to CCDC with a recommendation for adoption as a CCDC document.

3. CCA Cost-Plus Contract

To develop a new CCA Cost-Plus Subcontract Form.

4. RP-1 Contracts

To negotiate with Brookfield GIS on its procurement and contracting practices for construction contracts.

5. Exclusionary Bid Practices

To get the CCA policy on exclusionary bid practices in the new version of CCDC 23 and to monitor and oppose any exclusionary bid practices.

6. On-Going Priorities

To monitor PWGSC’s pilot use of BC Bid Depository.

To prepare the briefing material for CCA delegates and to facilitate the discussions for the next Joint CCA –Government of Canada meeting on April 11, 2016.

COUNCILS Civil Infrastructure Council

1. Develop a brochure for partner association use in explaining the benefits of harmonization of specifications and contract language.

2. Support CCA/CCDC efforts to promote to the Transportation Association of Canada the benefits of adopting standard specifications and contract language for civil projects across Canada.

3. Support the development of a Silica exposure mitigation, mobile application, for contractor use. 4. Develop the next edition of the Canadian Infrastructure Report Card.

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General Contractors Council 1. Project Management Firms: Give guidance to owners on the roles and services of Project

Management Firms by developing a best practices Guide on engaging Project Management

Firms.

2. On-Going Priorities

CCDC: To review and provide input into new documents prepared by the CCDC and

monitor CCDC activities.

Task Force on Federal Prompt Payment: To provide input to and monitor the work of

the CCA Task Force on Federal Prompt Payment.

Lean Construction Institute – Canada: To monitor the activities of LCI-C and ensure that

they offer CCA members access to training and resource information relating to Lean

Construction.

Manufacturers, Suppliers and Services Council 1. Collaborate with Trade Contractors in updating the 1986 Design Responsibility and the Trade

Contractor, especially the Insurance sections. 2. Draft supplement to CCA's 2010 Guide to PPP in Canada with a section focused on the

perspective of SMEs and their participation in these contractual structures.

Trade Contractors Council 1. Update and re-publish the CCA Trade Contractors Guide & Checklist to Construction Contracts,

with new content on the topic of design responsibility, as approved by the CCA Board in October, 2015.

2. Monitor initiatives to introduce Prompt Payment legislation across the country, including at the federal level.

3. Examine the contractual treatment of trade contractors on federal projects where the design is not clear and changes are made to the design to meet code, (i.e. Is the additional work required a change?)

4. Open discussion of ‘what keeps you awake at night’ (examples: Canadian dollar, oil prices, health care, education, immigration, our future environment) and what CCA can do to assist.

Executive Committee Prompt Payment

1. Establishment of a taskforce to:

Establish a clear policy position on payment and payment practices in the Canadian construction industry;

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Educate the federal government on the importance of prompt payment and cash flow on federal construction projects and work together to resolve any concerns, which may include the enactment of federal prompt payment legislation acceptable to the industry.

2. Lunch special section on CCA website to serve as a hub or source of information on prompt payment information/legislation and best practices;

3. Update CCA 28 2009 - A Guide to Improving Cash Flow in the Construction Industry, with a view to expanding its scope beyond simply the prime contract level to include best practices, available rights and remedies, etc. for subcontractors/suppliers;

Standard Document Education Continue to raise the awareness of CCDC/CCA standard documents with the industry and Partners Association staff.

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CALGARY CONSTRUCTION ASSOCIATION 2016 BOARD OF DIRECTORS

EXECUTIVE Frederick Vine Chair Chris Bardell Senior Vice-Chair Paul Knowles Vice-Chair Scott White Vice-Chair Robert Neufeld Treasurer Stephanie Roll Immediate Past Chair Dave Smith President DIRECTORS Colin Aitken Director at Large Bill Black Director at Large Rob Bromberg Director at Large Tyler Bungay Director at Large Fabrizio Carinelli Director at Large Andy Carr Director at Large Craig Clifton Consulting Engineers of Alberta Michael Cojocar Consulting Architects of Alberta Kim Connell Director at Large Wellington Evans Sheet Metal Contractors Association Todd Garstad Canadian Institute of Plumbing & Heating Scott Grobel Mechanical Contractors Association Shaun Hohman Canadian Bar Association Steve Huska Canadian Automatic Sprinkler Association Lois Innes Surety Association of Canada Serena Holbrook Masonry Contractors Association – Southern Region Dave Kinley Director at Large Norm Kuntz Alberta Ready-Mixed Concrete Association Gary Playsted Alberta Roofing Contractors Association Todd Poulsen Director at Large Ian Reid Director at Large John Reitmeier Glass & Architectural Metals Association Bob Robinson Director at Large Larry Shoesmith Construction Specification Canada Danijel Slisko Alberta Painting Contractors Association and the Master Painters

& Decorators Association of Alberta Jordan Teed Alberta Floor Covering Association Jack Vanier Reinforcing Steel Institute of Alberta Dwayne Wallace Director at Large Brent White Calgary General Contractors Association

CALGARY CONSTRUCTION ASSOCIATION · I am pleased to report that 2015 was ... engineering students...

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