Contractor Advantage September / October 2010

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September/October 2010 ® COMPLIMENTARY Contractor Advantage CANADA’S MAGAZINE FOR PROFESSIONAL CONTRACTORS PLUS: INSULATION TRENDS LEED CANADA GREY WATER HAZARDOUS WASTE BUSINESS EXPANSION Viewing Value

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Viewing Value Issue

Transcript of Contractor Advantage September / October 2010

Page 1: Contractor Advantage September / October 2010

September/October 2010

®

COMPLIMENTARY

Contractor AdvantageC a n a d a ’ s M a g a z i n e f o r P r o f e s s i o n a l C o n t r a C t o r s

PLus:INsuLATION TRENDs

LEED CANADA GREY WATER

HAZARDOus WAsTEBusINEss EXPANsION

Viewing Value

Page 2: Contractor Advantage September / October 2010

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Page 3: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 3

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Viewing value / 20As important as the products themselves can be, the role of the installer cannot be overlooked in supporting energy efficiency.

Insulation directive / 28Contractors would be well advised to read up on the latest trends and features because homeowners are becoming extremely savvy.

LEEDing the way / 36A program known by the full name of Leadership in Energy and Environmental Design has completed a significant update that will be important to contractors.

Dipping into grey water / 45Now that it is trickling into the homeowner’s consciousness, it can help contractors pour profit into their business.

Handling hazardous waste / 52Strict regulations exist around the safe handling, storage and disposal of hazardous waste. Failing to do so is not advised.

Business growth / 58No time, broadly speaking, is really better than any other to expand your business, although you can help yourself a good deal with some basic research.

Features

Castle Building Centres Group Ltd., with building supply outlets in every province, is Canada’s leading supplierof lumber and building materials to professional contractors, builders and renovators.

Publications Mail Agreement #40006677

Return undeliverable Canadian Addresses to:

6375 Dixie Rd., Suite 400Mississauga, Ont. L5T 2S1

Editorial DirectorCastle Building Centres

Group Ltd.Diane Jones

Managing EditorPaul Barker

Art DirectorJames Wardell

ContributorsNestor E. Arellano

Mark BeckhamDavid Chilton

Lawrence CummerGeorge Dans

Danita Johnson HughesPaul Rhodes

John G. SmithPaul Welch

Advertising EnquiriesVendors whose products are

carried in Castle Building Centres stores have the

opportunity to advertise in

For more information or to reserve space in the

next issue, contact: Diane Jones

Advertising Manager,Phone: 905-564-3307

Fax: 905-564-6592E-mail: [email protected]

Published and designed exclusively for Castle Building

Centres Group Ltd. by Business Information Group

Material Contact:Jessica Jubb416-510-5194

Copyright 2010

September/October 2010 Vol. 16 No. 5

Contractor AdvantageC a n a d a ’ s M a g a z i n e f o r P r o f e s s i o n a l C o n t r a C t o r s

NEWS WATCH / 5 Renovation spending rises

NEW PRODUCTS / 9 New and improved products

LEARNING CURVE / 13 Chaos & logistics

BUSINESS STRATEGIES / 14 Five P’s for business success

SMART MONEY / 16 RRSP advance planning

ECONOMICS 101 / 18 Avoiding power trips

CASTLECARE / 62 Managing risks

Departments

Contents

Page 4: Contractor Advantage September / October 2010

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Page 5: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 5

News Watch

An estimated 2.1 million households in 10 major surveyed urban centres indi-cated they completed renovations last year according to the Renovation and Home Purchase Survey released re-cently by Canada Mortgage and Hous-ing Corporation (CMHC). The average cost of renovations was approximately $12,100.

The survey reports on actual renova-tion expenditures made in the previous year, as well as intentions to buy or ren-ovate a home in 2010 in the following 10 major centres: St. John’s, Halifax, Québec City, Montreal, Ottawa, Toron-to, Winnipeg, Calgary, Edmonton, and Vancouver. The survey provides timely information on renovation market trends.

“More than $25.8 billion was spent on renovations in 2009, an increase of about $4.5 billion compared to 2008,” said Gustavo Durango, Senior Economist at CMHC. “As well, when Canadian hom-eowners were asked about their renova-tion plans for this year, 43% indicated that they intend to spend $1,000 or more by the end of 2010.”

Half of the households surveyed re-

Urban Reno Spend Hit $25.8B in ‘09ported that the cost of renovations under-taken in 2009 was in line with what they had budgeted, while 35% said that they went over their planned budget for the renovation. Upwards of 27% of house-holds that undertook a renovation project hired a contractor for a portion of the

work and 25% of renovations in 2009 were completed by “do it yourselfers.” However, many households (42%) chose to contract

out the entire renova-tion project.

Across the surveyed centres, 76% of house-holds who undertook ren-ovations in 2009 paid for the work from savings, a slight increase from 75% in 2008.

The main reason given by households for renovat-ing in 2009 was to update, add value or to prepare to sell (52%), while 32% said the main reason for reno-vating was that their home needed repairs.

The top three renova-

59%

80%

60%

40%

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0%

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40%

20%

0%

55% 55%47% 45%

58%50%

2008 2009

2008 2009

48%53%

47% 50%

23%

49%

73%

Share of homeowner households indicatingactual spending on renovations

Type of Renovation

Source: CMHC Renovation and Home Purchase Survey

Source: CMHC Renovation and Home Purchase Survey

59%

80%

60%

40%

20%

0%

80%

60%

40%

20%

0%

55% 55%47% 45%

58%50%

2008 2009

2008 2009

48%53%

47% 50%

23%

49%

73%

Share of homeowner households indicatingactual spending on renovations

Type of Renovation

Source: CMHC Renovation and Home Purchase Survey

Source: CMHC Renovation and Home Purchase Survey

tions completed last year were remodeling rooms (34%); painting or wallpapering (29%); hard surface flooring and wall-to-wall carpeting (27%).

Of the 10 major surveyed centres, the highest percentage of homeowner households that renovated in 2009 was in

St. John’s at 59%, followed by Ottawa at 58%, and Halifax and Winnipeg (both at 55%). The centre with the lowest propor-tion was Montreal at 45%.

Renovation intentions for 2010 are highest in St. John’s, where 55% of consumers indicated they plan to un-dertake renovations costing $1,000 or more. This is followed by Halifax, Win-nipeg and Ottawa (all at 50%). The proportion of potential renovators is lowest in Québec City and Montréal (both at 39%).

Maintenance and repairs are defined as any work made to keep a property in working condition or maintain its appear-ance, CMHC says. An alteration is any work made to add value or extend the useful life of the property.

Page 6: Contractor Advantage September / October 2010

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Page 7: Contractor Advantage September / October 2010

News Watch

CONTRACTOR ADVANTAGE september/october 2010 | 7

How quickly British Columbia’s con-struction industry emerges from the steep downturn that began in 2008 will depend on the timing of government stimulus and the resurgence of private-sector-led projects, says a newly released report by the Construction Sector Coun-cil (CSC).

In its annual report on the supply and demand for construction labour in B.C., the CSC estimated that construction em-ployment fell by 15% with the loss of over 21,000 jobs during the downturn.

“The Home Renovation Tax Credit, and other government investment in social and First Nations public housing infrastructure, have helped labour markets through the downturn. These programs support eco-nomic growth and provide opportunities for skilled workers,” says M.J. Whitemarsh,

Chief Executive Officer of the Canadian Home Builders’ Association of B.C.

On the up-side, the provincial Con-struction Looking Forward report esti-mates the return of stronger labour mar-kets for much of the forecast period, which extends from 2010-2018.

“Industry and governments must also consider that the demographic challenge is here today and that we need to contin-ue to address our labour market needs,” says Wayne Peppard, Executive Director of the British Columbia and Yukon Build-ing Trades.

Looking ahead until 2018, the B.C. sce-nario indicates 28,000 workers will retire, 3,700 positions will be lost due to mortality, and 27,400 new jobs will be created.

The CSC also notes that the 24,000 new entrants will not be enough to meet

New Report Examines B.C. Construction Industry

Housing Starts Continued To Dip In JuneThe seasonally adjusted annual rate of housing starts was 189,300 units in June, according to Canada Mortgage and Housing Corporation (CMHC).

Seasonally adjusted annual rate estimates of housing start activity were also revised up for April and May. This resulted in a month-over-month gain of 3.7% in April (205,900 units), a 5.1% decline in May (195,300 units), and a decrease of 3.1% in June.

“Housing starts decreased during June, largely due to the multiple starts segment in Ontario,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre.

“The single starts segment was largely unchanged Canada-wide. After a robust start to 2010, we expect the pace of housing start activity to moderate and total 182,000 units by year-end.”

The seasonally adjusted annual rate of urban starts decreased by 2.6% to 167,000 units in June. Urban multiple starts decreased by 5.8% to 89,200 units, while single urban starts edged higher by 1.4% to 77,800 units.

demand. “There will not be enough new workers to fill labour requirements, so our priorities will be on recruiting, train-ing and career promotion that targets all potential sources of labour,” says Manley McLachlan, President of the British Co-lumbia Construction Association, who adds that, “construction managers, con-tractors and supervisors will be in high demand throughout most of the forecast period.”

The CSC compiles reports for each province following consultations with in-dustry leaders, as well as governments and educational institutions. The national and regional scenario-based forecasts are re-leased annually and are available online at www.csc-ca.org. In addition, all scenar-io-based forecast data is available at www.constructionforecasts.ca.

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Page 8: Contractor Advantage September / October 2010

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Page 9: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 9

New Products

Innovative Products for Today’s Renovators

Building Blocks

BJET UNVEILS ECO-FRIENDLY CONCRETE FLOOR COVER Designed by Canadian contractors and engineers, tyroc from Guelph, Ont. BJET Inc. is a new and innovative concrete floor cover that will allow a contractor to install a comfortable and healthy basement floor, while adding value to the entire home. Carpets, tile, linoleum, lami-nate, and floor heating products can be installed on top of the tyroc panels. The result is a finished floor that feels solid but with give.

According to BJET, it is an environmentally friendly product that eliminates millions of used tires and plastic water bottles from land fill sites because 2.5 car tires and 8.5 kg (18.6 lbs.) of plastic bottles are used in the pro-duction of each 100 sq. feet of tyroc.

The board also acts as an effective barrier to mois-ture and cold and can increase floor temperatures by up to 3.2°C, which can greatly reduce home heating costs.

ADIAGO CEILING PANEL MAXIMIZES ACOUSTICAL CONTROLAdiago High CAC from CertainTeed is a sustainable composite ceil-ing panel, which the company says features superior acoustical perfor-mance by combining the sound absorption of high-density fibreglass with the sound containment qualities of mineral fibre.

The panel is rated as a CLASS A product by the International Or-ganization for Standards (ISO) 11654, the International Standard for Classification of Sound Absorbers, which ensures superior sound ab-sorption across a wide range of frequencies. The optimal sound ab-sorption and containment properties of the panels also eliminate the need for full height wall partitions, which can add complexity and cost to construction projects. Adagio High CAC also helps building occu-pants comply with various privacy regulations.

Page 11: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 11

New Products

DELTA DRY RAIN SCREEN PROVIDES ADVANCED WEATHER PROTECTIONBroadleaf is now distributing the Delta-Dry venti-lated rain screen from Cosella-Dörken Products Inc., with dual chambers for absorptive cladding. The screen addresses moisture problems specific to homebuilding practices in Canada, offering su-perior ventilation, drying and drainage capacity, the company says. By helping to reduce moisture and prevent mold, it can also extend the life of the building.

Delta-Dry provides advanced drying, drain-age and weather protection in a unique two-sided three-dimensional structure, and optimizes wall drainage and drying mechanisms. The product is easy to install and has been performance tested.

MOEN’S M-POWER FAUCETS HYGENIC, HANDS-FREEMoen Canada has announced a new line of easy-to-use M-Power sensor-operated faucets, which feature hands-free activation.

The new M-Power faucets are designed for commercial, healthcare and educational facilities to aid in conserving energy and electrical resources. A motion sensor starts and stops the flow of water, automatically reducing daily litres used, reducing sewage bills, limiting hot water consumption, saving energy and prevent-ing the risk of accidental overflow. In addition, the company says a lack of handles prevents the spread of germs and bacteria.

M-Power faucets are ADA-approved and powered using stan-dard lead-free AA Alkaline batteries or a low-powered AC adap-tor and comes equipped with a water-conserving low-flow, vandal-resistant aerator.

Above and below deck electronics offer installation options based on sink styles or building preferences. All of Moen’s M-Pow-er commercial electronic faucets are backed by a five-year war-ranty against material or manufacturing defects.

Page 12: Contractor Advantage September / October 2010

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Page 13: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE September/october 2010 | 13

Learning Curve

Two new releases examine the ‘Entrepreneurial Revolution’ and how good planning can improve the bottom line.

Of Chaos & Logistics

Despite the recent recession, or perhaps because of it, there has been an epic shift in people diving into entrepreneurship. Authors Clate Mask and Scott Martineau suggest in their new book Conquer The Chaos: How To Grow A Successful Small Business Without Going Crazy that “we are in an Entrepreneurial Revolution

that is not intended to overthrow the government or establish a new nation. This revolution is about how we work and how busi-ness is done.”

Like all revolutions, the Entrepreneurial Revolution will have massive casualties. 600,000 new small businesses will be created in the next 12 months. By the end of the year, half of them will have shut their doors forever. However, the freedom and adventure of being one’s own boss is quickly overshadowed

Poor logistics is costing the construction industry billions of dollars each year. Additional costs arise as a result of op-eratives waiting for materials, and skilled craftsmen being used for unskilled jobs. Inadequate management of logistics also has an adverse effect on quality, causes delays to projects, and adds to the health and safety risks on site.

Every major industry except construction uses logistics to im-prove its bottom line.

This practical, clear and accessible book highlights the ben-efits of good logistics in construction as well explaining the use of consolidation centres for projects.

It shows how reduction in transport movements, less money tied up in stock, less waste, and the more efficient use of skilled craftsmen will reduce the cost of projects, reduce construction

by the overwhelming state of chaos that comes with the de-mands of running a business.

By business owners, for business owners, Conquer the Cha-os enables entrepreneurs to re-evaluate their approach, revitalize their companies, and realize the freedom and success that their hard work deserves. It is for the parent who has missed one too many little league games, the person who is tired of dealing with headaches. It is for the entrepreneur who thinks, “Hey, this is not what I signed up for. How do I get on the path to freedom?”

Mask and Martineau reveal strategies for the business owner who is ready to break free. In Conquer the Chaos, they share their experiences of building a business from the ground up, down-loading their experiences of starting a business into one brutally honest narrative revealing the early days of their own chaos when they could barely make payroll, lived on pizza and lived with fami-lies that rarely saw them.

time, improve quality, reduce risks to health and safety, improve environmental performance and generally improve the image of the industry.

The authors, who are industry-recognized logistics experts, offer tried-and-tested ways of achieving these benefits through integrated project teams and supply chains, and the increased adoption of information technology.

Managing Construction Logistics includes a wide range of lively and detailed case studies showing how good logistics tackles the ‘hot potato’ issues within the construction industry: efficient use of labour; sustainability; waste and supply chain management.

Gary Sullivan is co-founder of Wilson James Ltd, which pro-vides support services to industry, commerce and government.

Stephen Barthorpe is the Corporate Responsibility Manager for MITIE Group PLC, a major strategic outsourcing and asset management firm.

Both books are available at www.chapters-indigo.ca

ManagingConstructionLogisticsGary SullivanStephen BarthorpeStephen Robbins

Conquer The ChaosJohn Wiley & Sons

Managing ConsTruCTion LogisTiCsJohn Wiley & Sons

bOOk

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Page 14: Contractor Advantage September / October 2010

14 | september/october 2010 CONTRACTOR ADVANTAGE

Business Strategies

As a business owner, did you ever just want to get the broom out and sweep out your entire team because they will not do what you want them to do?

You often wonder why your team will not perform or execute what you want them to do. Have you ever worked for a company that could not get their arms around their sales team? It gets so bad they cannot even get them to show up on time. Now, that might not be the case with you; however, when companies do not have a Standard Operating Procedure Handbook the result is controlled chaos. There are five areas that can help you improve your profits and raise sales.

For a business to be even more success-ful today they need to have these first four Ps in place1. People2. Policies3. Procedures4. Processes

Let us review them and find how out how you can improve your business today. People: If you have people working for you who are not committed to your team, then you have team breakers. They are like bad apples, you place them in a bushel of nice apples and all they do is rot the rest. Have management find out who is committed, and who is not. Either you tolerate, moti-vate or eliminate.Policies: Having written policies will clear up miscommunication along with all the excuses you hear people use to cover up

to execute? Training for most companies has dried up like the Mojave Desert. Companies continually commit business suicide by placing untrained people in profitable positions without trained skills so they fail by default.

Ask any Firefighters and they will tell you all they do is train. They cannot show up at a fire and ask, “now what?” The cap-tain would never say, “I have no idea, but if you put the wet stuff on the hot stuff that

might work.” Trained professional organi-zations have the right people, backed with policies and procedures that, backed with trained people, will allow them to follow the process. You can do the same thing if you have Standard Operating Procedures and follow the above rules. Business is not about life and death, but it seems like it when you are not reaching the profits you need to sur-vive or grow. When you have clear strategies backed with a goal, your team will be able to focus on the main thing.

The word focus is a magical word today in business, is it not? With peo-ple being distracted by many gadgets, bringing their home problems to work and gossiping about who knows what, it is no wonder that employees are not focused. If you had a line on your finan-cial statement of what it cost to not have your team execute properly, you would need a lifeline of Tums to help you re-lieve your heartburn. Teams need to be

their mistakes. Today’s teams need to have clear expectations on how to perform at your company. The last thing you want is the under-achievers teaching your new team mate how to break rules or make up their own.Procedures: Teaching and training your team to execute the procedures is what makes your company different. This is how you do business at your company. Can you imagine having over 100 em-

ployees and all of them having 100 dif-ferent ways of doing business? How this happens is that, through employee turn-over, procedures become watered down due to the fact that most companies have put training on the shelf, tucked behind last year’s goods sold. The results are al-most fatal; nobody knows what to do or how to do it. Processes: This is more important today than most business owners realize. The process is the ‘how to do it’ and where the rubber hits the road. How can businesses today expect their team to execute if they do not have clear expectations or the skills

They make sense for if a company does not have a Standard Operating Procedure Handbook it can lead to controlled chaos.

By GeOrGe DanS

Five P's for business success

George Dans is a speaker, trainer and founder of The Worlds Greatest Closer, a sales training and life changing firm specializing in personal and professional development. With over 20 years of experience, he helps maximize potential at organizations from small businesses to Fortune 500 companies. To find out more, visit www.worldsgreatestcloser.com.

Companies continually commit business suicide by placing untrained people in profitable positions without trained skills so they fail by default.

Page 15: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 15

Business Strategies

If you have people working for you who are not committed to your team, then you have team breakers. They are like bad apples, you place them in a bushel of nice apples and all they do is rot the rest.

focused today to succeed .Let us look at what FOCUS and TEAM

mean:F - Faithfully T - Train T - TheO - On E - Educate E - EmployeesC - Course A - Act A - AlwaysU - Until M - Motivate M - MatterS – Successful

If you do not have a course of expec-

tations then you will lose your way, along with the fifth P: Profit.

The five P's also mean:• Proper planning prevents poor perfor-

mance • Proper people prevent poor profits• Proper processes produce productive

profitsUsing this material will help you im-

prove your profits and get control of your team. Look at any successful orga-nization and you will find consistency is one of their backbones. In an incon-sistent world we need to be consistent. With a Standard Operating Procedure handbook, you and your company will be standing long after others have fallen victim to their excuses.

Page 16: Contractor Advantage September / October 2010

16 | september/october 2010 CONTRACTOR ADVANTAGE

Smart Money

The phrase “RRSP season” is usually thought of as being limited to the end of February or first of March each year; how-ever, the time for Registered Retirement Savings Plan (RRSP) planning should be year round, as the following ideas suggest.Create deduction room: Your RRSP deduc-tion limit for 2010 is the lower of: 18% of 2009 earned income, less 2009 pension adjustments, and the maximum deduc-tion limit (the maximum limit is $22,000 for 2010), plus unused RRSP deduction room carried forward from 2009. Earned income is primarily income from salaries, rental property, alimony, maintenance and unincorporated businesses and reduced by losses from the same sources.

There are other adjustments to this lim-it, which flow from membership in a Reg-istered Pension Plan: Past Service Pension Adjustments (PSPAs) decreases your limit and Pension Adjustment Reversals (PARs) increases your limit.

The owner-manager should therefore draw sufficient salary to ensure that the maximum deduction room is available for each year. This strategy should be adopt-ed even if contributions will not be made (for whatever reason) because any unused RRSP deduction room can be carried for-ward indefinitely.Sheltering income from tax: To qualify as a 2010 deduction for income tax, contribu-tions to your own or a spousal RRSP must be made no later than March 1, 2011; however, the sooner the funds are in your plan, the sooner they begin earning income that is tax

free. Therefore it is beneficial to contribute to your RRSP as early as possible in the year. Ideally the contribution could be made on January 2nd each year and the contribution deducted in the same calendar year.

If you over-contribute to your RRSP by more than $2,000 (after February 26, 1995), the excess is subject to a penalty of 1% a month for each month it remains in

the plan. There is no penalty for making $2,000 or less of excess contributions. This excess will not be available for deduction from income in the year it is contributed, although it may become deductible in a subsequent year, and in the meantime it will earn tax free income within the plan.

Contributions that have not been de-ducted may be withdrawn, within a cer-tain time limit, without tax implications from an RRSP or a successor Registered Retirement Income Fund (RRIF); howev-er, tax avoidance provisions apply where the over contributions can be shown to have been made without any intent of be-ing deductible.

Administration fees for self-directed RRSPs you pay outside your RRSP are not

tax-deductible; however, you may want to pay such fees outside your RRSP to maxi-mize the growth of your tax-deferred in-come within the plan.Cashflow: If you have made your RRSP contribution early in the year or are mak-ing regular contributions throughout the year using a preauthorized payment plan it is possible to apply to the Canada Revenue

Agency (CRA) for a waiver letter to reduce tax withholdings on your salary. Waiver ap-plication forms (T1213) can be obtained by visiting the CRA website at www.cra.gc.ca.Spousal plans: Contributions from your RRSP deduction limit may be made, in whole or in part, to either your own plan or to a spousal plan. You may contribute to your own plan until the end of the year in which you turn 71. You may contribute to a spousal plan until the end of the year in which your spouse turns 71 provided that you have un-used contribution room available.Turning 71: By December 31 of the year you turn 71 you must either convert your RRSPs (by either purchasing an annuity or by transferring the funds to a RRIF) or collapse the plan and receive a taxable lump-sum payment. If you do not make a decision by December 31, the full mar-ket value of your RRSP will be added to your 2010 taxable income. You can also choose any combination of these retire-ment options.

It is never too early to begin planning for “RRSP season”, but a few considerations must be made.

By Paul RhodeS

RRSP Advance Planning

Paul Rhodes is a partner at Soberman LLP. His professional experience includes providing assurance and advisory counsel to a number of clients in construction, manufacturing, real estate and internal audit engagements. Paul is a member of the Toronto Construction Association.

To qualify as a 2010 deduction for income tax, contributions to your own or a spousal RRSP must be made no later than March 1, 2011.

Page 17: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 17

Smart Money

If you turn 71 during 2010 and have earned income in that year (for example: salary, director fees, rental income, alimo-ny), you should consider making an extra contribution to your RRSP in December, just prior to the conversion of the RRSP into a RRIF or annuity. The extra contri-bution will be deductible on the following year’s (2011) income tax return.Withdrawals: If you withdraw funds from your RRSPs, tax is withheld by the finan-cial institution: 10% if the withdrawal is

For an owner-manager, your goal should be to ensure that both your fam-ily and the company’s tax position make sense. Given the benefits of tax free growth within an RRSP and the deferral of income tax until funds are withdrawn from the subsequent RRIF or annuity, they should form a part of any tax planning exercise.

This article has been prepared for gen-eral information. Specific professional advice should be obtained prior to the implementation of any suggestion contained.

less than $5,000; 20% if the withdrawal is greater than $5,000 and less than $15,000; and 30% for amounts greater than $15,000. Consider several smaller with-drawals rather than one large lump-sum payment to reduce the tax withheld at the time of the withdrawal.

The reduction in withholdings is only a tax deferral, as the withdrawn amounts must be reported on your tax return in the year of withdrawal where they will be subject to income tax.

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Page 18: Contractor Advantage September / October 2010

18 | september/october 2010 CONTRACTOR ADVANTAGE

Economics 101

Leaders are found in almost every stra-tum of life, in companies, politics, and in social organizations such as families or groups of friends. Leaders are powerful people because they have the ability to sway the attitudes, opinions and actions of others. Leaders inspire, influence and achieve results.

Everyone has the capacity to lead, be-cause everyone has the ability to influence others.

Developing the right leadership strat-egy for the people you lead is crucial to getting the results you desire. Therefore, it is important that you strengthen your skills to better influence, motivate, com-municate and coach your people.

Contrary to what many might think, few people are born leaders. Leadership is a skill developed over time, through practice and hard work.

Too often, being a leader and own-ing power can trip you up. Power in such cases can be misused or abused. This is often referred to as being on “a power trip.” Power tripping is usually viewed negatively and can cause others to lose respect and appreciation for you as their leader. Consequently, it is wise to recog-nize, develop, and refine those personal characteristics that are the mark of a truly effective leader.

Here are the eight C's for gaining and maintaining power and for keeping power in its proper perspective.Character: As a leader you will undoubt-edly be confronted with competing de-

you have all the available facts before de-ciding anything. Carefully consider all op-tions and their possible results before tak-ing action. Thinking through the potential consequences of your decisions often pre-vents problems from occurring down the road. Having enough information is only part of the equation. When you have all of the information that is available to you, use your intuition to fill in what is missing.

Connectability: Having the ability to de-velop meaningful relationships with others is the most important quality a leader can possess. You gain power through relation-ships. Having the ability to understand and connect with others is a key component in forming positive interpersonal relation-ships. Developing relationships with key people will expand your sphere of influ-ence, your access to resources, and your capacity to make things happen.Contribution to the Welfare of Others: One of the greatest attributes of a good leader is your willingness to serve others. Many times people enjoy being in positions of power because of what they gain person-ally, not because they want to help others; however, service should come from the heart if it is genuine. Having the willing-ness to serve others and to put their needs and desires before your own is reflected in the attitude and actions of a good leader.Creative Perception: Often referred to as vision, creative perception is essential to

mands from time to time. The ability to manage these demands is with integrity, honesty, and selflessness becomes crucial. Being willing to sacrifice your success, your fortune, and even your life takes guts; being unwilling to sacrifice your in-tegrity takes character.Courage: Martin Luther King, Jr. once said, “the ultimate measure of a man is not where he stands in moments of comfort

and convenience, but where he stands at times of challenge and controversy.” Cou-rageous individuals take calculated risks. They hope for the best possible outcome but are prepared for a loss.Commitment: Every day of your life you may face challenges, but commitment is the will and strength to keep forging ahead in spite of how many times you are knocked to our knees. It is the ability to accept setbacks as merely temporary in-conveniences that get in the way and try to steer you off course. In the long run, however, unwavering perseverance gets you through. Cautious Attentiveness: A good leader needs to be accurately informed. Be sure

Developing the right leadership strategy for the people you lead is crucial to getting the results that you desire.

By Danita Johnson hughes

Avoiding Power Trips

Danita Johnson Hughes, Ph.D. is a public speaker and author of the forthcoming “Turnaround.” For more information visit www.danitajohnsonhughes.com, or write her at [email protected].

Contrary to what many might think, few people are born leaders. Leadership is a skill developed over time, through practice and hard work.

Page 19: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 19

Economics 101

good leadership. Leaders have a passion for change. They are preoccupied with future possibilities. As a leader, you must be able to clearly articulate your vision in order to inspire and motivate others. Employees who are excited about the leader’s vision and the direction of the organization become much more productive and willing to participate in the success of the organization.

Much popular literature on leadership is rife with contrasts between leadership and power, but to be an effective leader you have to exercise power to realize the results you are striving to achieve. Inher-ent in leadership is the ability to bring others along either through the power of persuasion, erudition or position.

Because everyone has the capacity to lead, each of you is powerful in your own way. Simply defined, leadership is the abil-ity to influence others to act and to moti-vate them to get things done. Individuals ascend to a position of leadership by exer-cising power in one of three ways:

Persuasive power is usually a result of your ability to make an emotional connec-tion with others and through this connec-tion manage to persuade their actions. Persuasive power is a reflection of your charisma, or ability to draw people to you.

Erudite power is that gained through extensive knowledge of a particular sub-ject or an area of expertise. Erudite power is usually based on the acknowledgement of your intellect and/or academic accom-plishment. People are drawn to this type of leader because they are deemed learned in a particular area.

Positional power is based on your abil-ity to control and have authority over oth-ers by virtue of hierarchical order. Posi-tional power is most frequently observed in employment situations where there are levels of employees from line staff through senior management. It may also be ob-served in politics where a person ascends to a position of authority through an elec-tion process or by appointment.

In most cases, you may ascend to a posi-tion of leadership as a result of a combi-nation of these factors. Whether leader-ship is gained through personal qualities, erudition, position or a combination of these qualities, it involves influencing the actions of others.

Knowing who you are is the most criti-cal element in becoming an effective lead-er. It requires looking through the lens of critical analysis. It is about being in control of yourself first, before you can expect others to follow your lead. It is about hav-ing self-confidence and being passionate about your values and beliefs. A good value system can help you to stay on course when the ship gets tossed in the storm.

One of the greatest attributes of a good leader is your willingness to serve others.

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20 | september/october 2010 CONTRACTOR ADVANTAGE

Cover Story

Windows will never match the insulating ability of a solid wall. Even Brad West admits that, and he is the director of sales for Jeld-Wen Windows and Doors. “There just has to be a balance between letting

light and ventilation in, and living in the dark,” he says. Homeowners are obviously opting for the added light and ventilation,

choosing larger windows than ever before. The challenge is finding the prod-ucts that will create a livable space and keep utility bills under control.

The insulating value of a window is dictated by a number of factors. A fixed model will always be more efficient than one which opens and closes; a case-ment window will offer a tighter seal than its sliding counterpart. Putting those differences aside, there are the efficiencies dictated by the glass itself. A single piece of glass offers an R value of 1.0, while a second layer of glass and an in-sulating spacer will deliver R 2.0. The combination of low-emissivity (Low-E) glass and a layer of argon gas will double this rating.

The clearest idea of the window’s overall energy efficiency, however, tends

As important as the products themselves can be, the role of the installer cannot be overlooked in supporting energy efficiency.

by john g. smith

Viewing Value

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CONTRACTOR ADVANTAGE september/october 2010 | 21

Cover Story

Page 22: Contractor Advantage September / October 2010

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Dust Falls Straight to the Floor!Introducing DUST CONTROL™, a revolutionary new drywall compound by CGC. DUST CONTROL™ is thefirst and only drywall compound engineered tosignificantly reduce airborne dust from sanding.It is ideal for those jobs where protection fromdust infiltration is crucial such as homes, schoolsand office environments. With DUST CONTROL™

Drywall Compound, dust falls straight to the floor, making clean-up faster and easier than ever.

The CGC logo and DUST CONTROL are trademarks of CGC Inc.

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CONTRACTOR ADVANTAGE september/october 2010 | 23

Cover Story

to come in the form of an En-ergy Star label.

“The Energy Star logo is the recognized symbol of energy efficiency in Canada, and one that consumers can recognize,” says Aaron Latimer, vice president of marketing at All Weather Windows. It can also be a de-ciding factor in a sale. In one Ipsos Reid survey, consumers said that products with these labels were 80% more likely to be selected when all other factors are equal.

Buyers should simply be looking for Energy Star windows that meet their specific needs.

The ratings themselves are always linked to a geographic zone. Windows destined for the Toronto market, for example, can earn the seal of approval with an R 3.2, but those sold in the northern reaches of Ontario would need to offer a value of R 4.0. Canada as a whole is identified into four zones.

As of this October, details like these will be found on new Fenestration Qualification Labels. “It confirms that the window

is Energy Star qualified for that specific zone it is shipping into and it has on it the ER (Energy Ratings), the SHGC (Solar Heat Gain Coefficient), the U value and the ABC ratings,” Latimer says.

The U value measures the amount of heat that can trans-fer through a window, and is the mathematical inverse of an R value. An R value of 2.0, for ex-ample, would mean a U-value of ½ or 0.5. A window with a lower U value will deliver better insulating properties, usually because of ex-

tra glazing, improved spacers, or a gas such as argon between the layers of glass. The ER rating, meanwhile, will measure the overall performance of a window considering solar heat gains; heat lost through frames, spacers and glass; and heat losses because of air leaks.

Energy Star standards relating to the individual zones are be-coming more stringent in the process. The traditional require-ments for the southern areas known as Zone A are disappearing ph

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The insulating value of a window is dictated by a number of factors. A fixed model will always be more efficient than one which opens and closes; a casement window will offer a tighter seal than its sliding counterpart.

Page 24: Contractor Advantage September / October 2010

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CONTRACTOR ADVANTAGE september/october 2010 | 25

Cover Story

altogether. Every zone will need to meet stan-dards that had been linked to an area imme-diately to the north. (Zone A, for example, will meet the standards that were once ap-plied to Zone B, and an entirely new set of standards is being developed for Zone D.)

In addition to that, the new Energy Star standards will require a minimum Solar Heat Gain Coefficient (SHGC) of at least 0.22. This figure is calculated by measuring the solar heat that can pass through a window, considering different angles and even shade from the window frame itself. With the right coating, a window could have a low SHGC to

block heat-producing light waves while still allowing a lot of Visible Light (known as VT) to pass through the glass.

The idea of monitoring the SHGC might appear to be an issue limited to those living in the southern U.S. but it is still an issue for Canadian customers who are dealing with large, south-facing glass walls. “The room, even in the wintertime, can become unbear-able,” West says, referring to areas where a higher level of protec-tion may be required.

Latimer points out another way that the information can be used. Canadians spend an average of 56% of their energy bills to heat their homes compared to a mere 2% to cool the living space. “The SHGC is critical because you want to allow as much of that natural solar heat gain to come into the house when the sun is low

on the horizon,” he says.The window ratings do not end there. Every

product also carries an “ABC” designation up to a maximum of A3B7C5, measuring how well the structures protect against air (A), water (B) and the resistance to wind loads (C).

Local building codes will dictate the minimum requirements, but contractors can use the num-bers to compare good, better and best designs. While an A1 rating will be relatively leaky, an A3 design will be air tight. That will be very impor-tant when trying to limit drafts. A highly rated B7 window will be able to withstand driving rain and help to protect against water damage. A C5 rat-ing, meanwhile, will identify the windows that can withstand the high winds that attack windows in ph

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shown are two examples of natural resourc-es Canada's new Fenestration Qualification labels, required as of october 1.

there are two basic types of labels avail-able, left, with a map of Canada to show the area of qualification and right, with the zones of qualification shown in text.

the specific information on the label will vary according to the type of product, the certified performance results required on the label by the certification organization and the standards used to produce the per-formance results.

all these labels are placed on the glass and are meant to be removed after installation.

Further labelling and promotional guide-lines for windows can be found at the nrC website at http://oee.nrcan.gc.ca/residen-tial/business/manufacturers/guidelines-windows-doors.cfm?attr=12source: natural resources Canada

Fenestration Qualification labels

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5934_FMXfamily ad_ContractorsAdv.pdf 5/4/10 12:27:48 PM

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Cover Story

the upper floor of a high rise building. There is a reason these particular ratings are linked to local

building codes. “In Lethbridge, Alta. you have much different wind requirements than you would in Edmonton, even though Lethbridge would be a warmer climate,” Latimer explains as an example.

He also stresses that these building code requirements should be considered during renovations as well as new con-struction projects. “Contractors can sell the fact they are re-placing the window with a ‘full code’ window,” Latimer says. Buyers will recognize the importance of a building code re-gardless of their construction experience.

The length of a warranty is another factor that will play a role in the overall energy efficiency of the design, since it will show how well the product will maintain its insulating gas.

As important as any of these ratings will be, consumers can be expected to pay for a larger share of the energy saving de-signs out of their own pockets. Recent financial rebates are dis-appearing now that federal and provincial governments begin to grapple with growing budget deficits. “Contractors should focus their message to consumers on the upside of long term energy savings,” Latimer adds. There is still some financial support to be found in selected areas. Ontario, for example, continues to pay up to half of the cost of a pre-retrofit energy audit, up to $150, along with a rebate of up to $30 per replaced window to a maximum of $5,000. The contractors who are in-formed about these programs could have a better chance of securing a sale if they have all the related paperwork in hand.

As important as the products themselves can be, the role of the installer cannot be overlooked in supporting energy ef-

ficiency. “If the installation is not good, you can have the best win-dow in the world but not get the benefit of it,” West says.

“Quite often with the original window there was not a lot of at-tention paid to properly insulating that frame,” he says as an exam-ple. The best approach when replacing one of these windows will

be to pull out the sash and frame to expose studs in the wall, and then insulate the openings that are exposed.

At least half of the cavity should be filled with low expansion foam. “You do not need to fill it so it is gush-ing out,” he adds.

West also stresses the need to prepare the space around the window, which will often be the source of future leaks. “Quite often, as soon as there is a leak around the window, the assumption is that the win-dow is faulty. Water will take whatever path it wants. It could be six feet above the window where the water is penetrating.” The simple addition of a rubberized strip will deliver a tighter seal and block any moisture from reaching the spaces between the windows and studs.

When “draft proofing” the seal between the window frame and the exterior wall, it is best to use a high qual-ity exterior caulking made of a thermoplastic sealant, which will maintain its elasticity, be paintable and will

not shrink over time.With the combination of the right products and installation

steps like these, contractors and their customers will be able to find all of the energy savings that a window can offer.

Everyone will view the value in that.

The simple addition of a rubberized strip will deliver a tighter seal and block any moisture from reaching the spaces between the windows and studs.

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Page 28: Contractor Advantage September / October 2010

28 | september/october 2010 CONTRACTOR ADVANTAGE

How To

Contractors would be well advised to read up on the latest trends and features because homeowners are becoming extremely savvy about energy efficiency.

InsulatIon Directive

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CONTRACTOR ADVANTAGE september/october 2010 | 29

How To

By LawrenCe Cummer

T he demand from homeowners for improved energy efficiency continues to rise, and in the coming years, business is expected to heat up for those contractors who have an understanding of insulation products on the inside and out.

Governments around the world are also taking note of the role that insulation retrofits play in stimulating economies through new jobs and helping protect the environment.

to that end, insulation products, and projects, continue to see moderately healthy sales and new innovations driven by consumers’ simultaneous desire to save money, pro-tect the environment and increase living space comfort. an assortment of government rebates and tax credits have not hurt either.

“they opened up a lot of eyes,” says al Rizzuto, branch manager at Gentek Build-ing Products, of the rebates and eco-programs offered by federal and provincial govern-ments. “Homeowners realized that their homes were not as well insulated as they thought they were. the result of that is that contractors are now getting asked more often about insulation values on products and how they can do a better job of insulating homes.”

Regardless of whether cost savings or environmental concerns are the root, Rizzuto notes it is important to recognize homeowners are becoming extremely savvy about en-ergy efficiency issues and, thanks to the Internet, more educated than ever before. like-wise, they expect their contractors to be equally as well versed.

Ron Van Pelt, vice president of sales at Guardian Building Products, agrees saying that providing energy efficiency retrofits have become an excellent ways for contractors to specialize, build and grow a healthy business. He says recently numerous contractors have become re-educated about insulation and turned it into an area of expertise.

“Consumers are looking for viable alternatives to the way things have been done for the last 20 to 25 years,” Van Pelt says. “over and above that, many homes are still under-insulated.”Provincial Code Changes: Building more highly-insulated homes is not just a good busi-ness opportunity, it is becoming the law.

In Canada, building codes across the country have been gradually ramping up their insulation expectations. For example, just last year, requirements set down in the ontario Building Code mandated the construction of near-full-height basement insulation. In the past, insulation only 4’ down from the foundation walls was acceptable.

this is a good move, suggests David Flood, regional sales lead for owens Corning Corp. in atlantic Canada, since the basement remains one of the largest areas of a home for inefficient heat loss.

He also says, from a building code perspective, his home province of nova scotia is ahead of the curve in driving some initiatives such as R-2000 homes. on Jan. 1, 2010, the province adopted strict new policies around the insulating of homes. the new policies require side-walls to have an insulation value of R-24, fully insulated basements of R-20 and an attic with a value of R-40, according to Flood.

“all that does is a number of things,” he says. “It helps the contractor build a better home for one. You are building a better home that is comfortable and warm, and for less dollars over its lifetime."

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30 | september/october 2010 CONTRACTOR ADVANTAGE

How To

Contractors also need to pay close attention to upcoming in-sulation changes mandated in their region’s building codes. the 2006 ontario Building Code, for example, mandates EnerGuide 80 levels of efficiency for new construction applications starting in 2012. the Government of nova scotia has also indicated it will require EnerGuide 80 or R-2000 certification for new homes built after January 1, 2011.

Regulators in ontario, nova scotia and B.C. are also currently working toward legislation to have low-rise residential buildings labeled with their EnerGuide performance ratings, so consumers can make informed decisions around the energy performance (and ultimate utility costs) of a home before purchasing, renting

or leasing it. such labeling will be positive for consumers and the industry, Flood suggests.

“It is nice to see the government agencies and building code of-ficials get on the bandwagon and say, ‘You know what? You have to build a building to this energy standard and it has to be efficient.’”Quick Comfort Fixes: When looking for fast and affordable ways to improve the insulation value of a home, contractors should think outside the box, and zero in specifically on exterior walls.

one of the bigger trends today is the use of extruded rigid in-sulation on exterior walls to improve their thermal performance. ph

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When looking for fast and affordable ways to improve

the insulation value of a home, contractors should think outside

the box, and zero in specifically on exterior walls.

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CONTRACTOR ADVANTAGE september/october 2010 | 31

How To

When compared to the R-values of ½” fibreboard or osB (1.22 or 0.57, respectively) insulated sheathing can provide R-values of 3 for a ½” thick or 5 for a 1” thick board.

Flood suggests impressive energy performance gains can be ex-perienced by adding R-20 batt insulation in the side-wall and an R-5 extruded insulated sheathing to the outer-wall for cumulative effect. While R-5 might seem mar-ginal at first glance, in the end it makes a notable difference.

“look at it this way: if you have a wall with an R-value of 20 and you add R-5 sheathing, you have increased the thermal perfor-mance by a full 25%.”

Flood suggests extruded sheath-ing provides an even greater bang for the buck when combined with the in-sulated walls of an attic as it helps pre-vent thermal bridging over wall studs.

Beyond that, contractors looking for efficiency gains should start from the top and work their way down.

although typically already insulated, the attic is a good place for contractors to start for quick gains. a layer of blown-in, loose-fill fibreglass insulation, or controlled density foam insulation, can be added to improve existing attic insulation and increase its R value by as much as 20. the equipment can be rented from lumber yards and retailers, and turns upgrading attic insulation into a job that is comfortable for many do-it-your-selfers. Fortunately for contractors, many homeowners remain part of the do-it-for-me crowd, Flood says.

Foam insulation, like Guardian’s ultra-FitDs, provides an R-value of 6.3 per inch, while traditional R-12 batt insulation is 3.5” thick. this makes such a product ideal for side-walls, Van Pelt says. the blown-in insu-lation also completely fills around pipes, wires and other objects to significantly re-duce voids and air gaps.

During new installs and for energy ef-ficiency retrofits, Rizzuto stresses contrac-tors should consider the option of poly-

urethane foam-spray insulation around window and doors. spray guns are similarly available with narrower tips for application around the frames of doors and windows.

“We are seeing a lot more people doing complete tear-outs of a window, whereas before they would just be installing a new win-dow in the frame of the old one. What they are finding is that the

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How To

old window probably was not insulated as well as it should have been and they are going back to the studs to ensure it is that much more energy efficient.”

Homeowners are looking at insulation as a house-wide sys-tem, meaning contractors can leave no stone unturned, but also affording the mixing and matching different products and solu-

Although typically already insulated, the attic is a good place for contractors to start for quick gains. A layer of blown-in, loose-fill fibreglass insulation, or controlled density foam insulation, can be added to improve existing attic insulation and increase its r value by as much as 20.

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How To

tions for maximum results, says Van Pelt.Easy Being Green: Homeowner demands to reduce the impact of insulation products on the environment are being heard loud and clear by insulation manufacturers and driv-ing further product changes that manufac-turers say contractors need to be aware of.

the amount of recycled content in fibre-glass insulation has for a few years been a key attribute that manufacturers boast about, but now consumers are asking for even

more green practices. For example, manu-facturers are striving to increase the number of insulation batts that can fit in a bag, and similarly in a truck. this reduces the carbon emissions created in transporting product and also provides savings around shipment.

Foam insulation is being developed using materials such as soy, which boasts the advantages of other foam insulations in creating an air-tight seal, but also to be made from soybean oil and recycled plas-

tic. similarly, fibreglass manufacturers are moving away from use of formaldehyde in their products. “obviously the market dic-tates where we have to go,” says Van Pelt of the move from formaldehyde. “this is just in line with the things insulation manu-facturers need to be doing to address the concerns of the consumers, and contrac-tors also need to be aware of it.”

Homeowners’ environmental concerns and financial burdens are, not surprisingly, very closely intertwined when it comes to issues of home insulation. as prices for non-insulated products go up, homeown-ers have been quick to seek out more ef-ficient and “green” solutions.

For example, Flood says that he can track the success of his company’s CodeBoard Extruded Polystyrene Rigid Insulation by monitoring shifting prices of osB. When the price of osB goes up, he says so to do the sales of polystyrene sheathing, which has prices less tied to the commodities markets.

With price deltas shrinking homeown-ers want green choices. “the margin be-tween ‘cheap’ and ‘green’ are not that dra-matic anymore,” Flood says.

Van Pelt ties the insulation market and success of contractors specialized in it closely to environmental pressures. He says contractors need to be aware of ener-gy efficiency problems and their solutions through continuous education by tapping into resources like manufacturers, retailers, governments and industry associations.

“the reality of the world is fossil fuels and energy are getting more expensive,” says Van Pelt. “Costs are going to continue to rise and to reduce our dependence on fossil fuels we can find new energy sources or reduce the usage, and efficient home building has got to play a part.”

thermal bridges are regions of a building construction through which local peaks of heat loss can cause surface temperatures to drop below the dewpoint. computer models, such as (left) antherm (analysis of ther-mal behavior of building construc-tions with heat bridges) can predict heat loss in new structures, while thermal imaging (right) can detect problems in existing homes.

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Page 35: Contractor Advantage September / October 2010

CAMBRIDGE LT & 30A R C H I T E C T U R A L S H I N G L E S

The IKO Advantage. The larger the shingle, the bigger the savings.

· A larger shingle means increased profitability - you save time and labour by using fewer shingles and fewer nails. One of the heaviest asphalt-based shingles on the market.· Laminated shingle construction provides superior resistance against thermal cycling, tearing and high wind.

With its standout protection, strength and impressive architectural design, why choose anything but IKO Cambridge Series shingles?

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Page 36: Contractor Advantage September / October 2010

36 | september/october 2010 CONTRACTOR ADVANTAGE

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Page 37: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 37

Feature

When it comes to green building practices there is little doubt that LEED is leading the way. Recently the pro-gram known by the full name of Leadership in Energy

and Environmental Design has completed a significant update, upgrading the requirements for many of its coveted credits.

“The LEED rating systems were developed to encourage the transformation of the building sector towards more sustainable design, construction and operations practices,” explains Ron Lemaire, vice president of market development for the Canada Green Building Council (CaGBC), which oversees the program on this side of the border. “Naturally, this requires that the rating systems be updated periodically to reflect the progress made by the industry, including updates to codes and standards, new tech-nologies and new practices.”

LEED first emerged in the U.S. in March 2000, largely focusing on commercial projects. Since then it has expanded to include specialized versions for homes, commercial interiors, high-perfor-mance building operations, cores and shells. Builders now pur-sue certification in 60 countries, covering more than 3.2 billion square feet of real estate, and since 2001 more than 10,000 people in Canada have become LEED Accredited Professionals.

Registration using the latest standards for new construction and major renovations opened this June.

One of the things that set LEED apart from many alternative

standards is the way that it demands measurable results. Every green element of a project is verified by a third party. Only after being recognized with enough related points will the final struc-ture earn a certified silver, gold or platinum designation.

The points themselves come from a number of individual prac-tices including everything from sustainable site development to water use, energy efficiency, the choice of materials and indoor environmental quality. Those earned for a building site, for ex-ample, are realized through such steps as limiting the amount of storm water runoff or increasing urban density. Efficient water use is recognized when developers minimize wastewater or eliminate the need to irrigate lawns. The nods for energy efficiency emerge with sources of renewable energy and steps to eliminate ozone-depleting chemicals.

They are requirements that can have a direct impact on con-tractors, subcontractors and tradespeople alike, leading them to source specific material such as wood certified by the Forest Stew-ardship Council (FSC), use properly labeled waste bins to reclaim material and limit construction waste, or even reuse an existing façade.

While previous projects had been scored out of a maximum 70 credits, the latest update known as LEED Canada NC 2009 in-creases the total to 110 credits and changes the way different ini-tiatives are weighed, depending on their environmental impact.

Canada’s green building standards have been upgraded and updated.

By John G. Smith

LEEDing the Way

Page 38: Contractor Advantage September / October 2010

Paint Performance

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Page 39: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 39

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For example, the “energy and atmosphere” credits that once ac-counted for 24% of the available points now make up to 32% of the potential scores.

The latest changes also take an important step toward find-ing common ground between standards set by the Canadian council and counterparts from the U.S. Green Building Coun-cil (USGBC). “Unfortunately, LEED Canada NC 1.0 (the first round of standards) was developed during a time of transition at the USGBC, and as a result was not as well aligned as the new version,” Lemaire admits. “We will be developing a document outlining the most significant differ-ences in the coming months. However, Canadian teams are most interested in how the new rating systems have changed relative to the versions they are currently using.”

They are all Canadian approved standards, but there is no overlooking the impact of U.S. regula-tions. The updates include direct references to legislation such as the 2003 U.S. Environmental Protection Agency Construction General Permit to prevent pollution from construction activities.

The U.S. group plans to update the program ev-ery three years and Lemaire expects CaGBC to fol-low a similar schedule.

The process may not be for every builder, however. CaGBC actually suggests that home builders who are new to green building procedures may want to begin with other programs and gradually make the transition to LEED. That said, there is plenty of support for builders in the form of reference guides and workshops, and every project involves the services of a local

or regional professional. They will be responsible for helping to complete a related EnergGuide rating and verify any work on a site.

Members of the CaGBC pay $900 to certify up to 10,000 square feet of a housing project, plus an extra .045 per square foot be-yond that. Non-members pay $1,200 or .055 for every extra square foot. The most significant costs, however, involve the overall price of design and construction itself. A basic LEED certification can add about 3% to the cost of a typical home, with 7% added to earn

a silver rating, 10% for gold and 15% for platinum. Of course, the incorporated building standards can deliver dividends in the form of lower ongoing operating costs linked to energy bills. According to figures published by Enermodal Engineering, which has certi-fied five times more LEED Canada buildings than any other LEED consultant, the typical payback on a certified building is less than

There is a lot of information to track, and

contractors working on LEED projects might

want to be careful to follow due diligence

around their share of the work. Contracts

may include penalties that can apply if a

desired certification is not achieved.

the system measures the overall performance of a home in eight categories:1. Innovation&DesignProcess(ID). special design methods, unique regional credits, measures not currently

addressed in the Rating system, and exemplary performance levels. 2.Location&Linkages(LL). the placement of homes in socially and environmentally responsible ways in relation

to the larger community. 3.SustainableSites(SS). the use of the entire property so as to minimize the project’s impact on the site. 4.WaterEfficiency(WE). Water-efficient practices, both indoor and outdoor. 5.Energy&Atmosphere(EA). Energy efficiency, particularly in the building envelope and heating and cooling

design. 6.Materials&Resources(MR). Efficient utilization of materials, selection of environmentally preferable materials,

and minimization of waste during construction. 7. IndoorEnvironmentalQuality(EQ). improvement of indoor air quality by reducing the creation of and exposure

to pollutants. 8.Awareness&Education(AE). the education of the homeowner, tenant, and/or building manager about the

operation and maintenance of the green features of a LEED® home. the system works by requiring a minimum level of performance through prerequisites, and rewarding improved

performance in each of the above categories. the level of performance is indicated by four performance tiers - certified, silver, Gold and platinum - according to the number of points earned.source: LEED canada for homes

LEED Canada for Homes Rating System

continued on page 43...

Page 40: Contractor Advantage September / October 2010

40 | september/october 2010 CONTRACTOR ADVANTAGE

LEED Canada NC 2009

The Canada Green Building Council or CaGBC has announced that registration for LEED Canada for New Construction and Major Renovations (NC) 2009 and LEED Canada Core and Shell Development (CS) 2009 opened June 21, 2010. These new rating systems offer many advantages, including:• Re-weighted credits: the number of points that may be earned

for each credit has been re-evaluated using a more scientific approach, resulting in greater emphasis on preventing climate change.

• Familiarity: the majority of credits have not substantially changed.

• Faster certification: the audit round of the certification process has been eliminated, and streamlined compliance pathways are available for some credits. Projects registering as of June 21, 2010 will be registered under

the 2009 versions, while projects registered prior to this date may switch to the new rating system.

“The built environment has a profound impact on our natu-ral environment, economy, health, and productivity,” the council says. “Break-throughs in building science, technology and opera-tions are now available to designers, builders, operators and own-ers who want to build green and maximize both economic and environmental performance.

“The green building movement offers an unprecedented op-portunity to respond to the most important challenges of our time, including global climate change, dependence on non sus-tainable and expensive sources of energy, and threats to human health. The work of innovative building professionals is a funda-mental driving force in the green building movement.”

Green Friendly: Tips And Advice For The Contractor Professional

Page 41: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 41

NC 2009 Q&AHow can I learn more about the new rating systems? The New Construction Technical Review workshop has been updated to LEED Canada NC 2009. See the CaGBC website (Education section) for further details. In addition, the CaGBC will be offering a webinar to present an overview of the differ-ences between the previous versions and the new 2009 versions.

Will I be able to switch a previously registered project to LEED Can-ada NC 2009 or LEED Canada CS 2009 after these versions are launched? Yes, projects registered under the current versions of the rating systems will be able to switch to the new versions. Applicants are encouraged to contact CaGBC Customer Service if they wish to be switched to the 2009 versions, but are cautioned that once the project is upgraded to version 2009, the project may not be converted back to the previous version.

Will I be able to use LEED Canada 2009 pathways for a previously registered project without fully upgrading to new products? Yes, projects registered under the current versions of the rating systems will be able to use some pathways from LEED Canada NC 2009 and LEED Canada CS 2009 without fully upgrading to the new rating systems. A table of allowed substitutions is provided on the CaGBC’s website. Not all new pathways will be acceptable for previously registered projects due to the change in individual credit weightings. However, the CaGBC recog-nizes that some applicants will want to use the alternative credit pathways provided in the 2009 product line but are unable to fully upgrade due to the stage of completion of the project. This methodology provides flexibility to LEED Canada users.

Source: CaGBC

Green Friendly: Tips And Advice For The Contractor Professional

Page 43: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 43

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three years, although it can take three to five years to cover the costs of a silver rating, five to 10 years for a gold, and more than a decade to realize the savings of a platinum structure.

The latest changes cover many aspects of the program.The LEED Canada New Construction (NC) and Core and

Shell (CS) ratings have merged into a single document and now share a common reference guide, although there were also a few substitutions, additions and eliminations along the way. Many ele-ments of the two documents were largely identical, and develop-ers often switched from one to the other depending on their abil-ity to find tenants.

The new certification process also in-cludes two stages, requiring more informa-tion in an application but eliminating the need for a full CaGBC audit.

The standards themselves have evolved as well. Points related to the choice of a site, for example, will limit construction on undevel-

oped land or any graded property found within 15.2 m of a water body that could support fish, recreation or industrial use. It is not the only way a measurement will play a role in the credits. Access to public transportation now needs to be measured from the main entrance of the building, and there can now be no more than 3.5 parking spaces for every 1,000 square feet.

On some building sites, credits can be earned by controlling the velocity and quality of storm water, protecting the receiving waterways from erosion. Requirements for total phosphorous lev-els have been removed and replaced with the need for an overall nutrient management plan to limit pollution. The new details also limit the use of temporary irrigation systems to one year.

Thresholds linked to the use of recycled content and regional

material have changed, too. When it comes to credits for using regional material, products accounting for 30% of the build will need to be extracted within 800 km of where they are manufac-tured. Meanwhile, recycled content will need to account for 20% of a project to earn related credits, compared to the 10% thresh-old that was in place before.

The updated standards also steer developers away from using several different materials. For example, recognized fire suppres-sion equipment can no longer contain any halons or ozone-de-pleting materials. Primers now need to meet SCAQMD require-ments rather than having a Green Seal, and all but 5% of the

flooring must be made of low-emitting materials.The revised thresholds used to award points

for renewable energy are based on a structure’s total energy costs rather than being limited to the regulated loads. A project only has to meet 35% of its energy needs with green power to earn a related credit, but the calculation includes all electricity in the building.

There is a lot of information to track, and contractors working on LEED projects might want to be careful to follow due diligence around their share of the work. Contracts may include penalties that can apply if a desired certification is not achieved. That might require some clarifi-cation around how the points will be earned and a close look at the credits that will be the sole responsibility of the contractor. Those who work with subtrades or any other tradespeople may need to incorporate holdback clauses to ensure all related LEED documents are in hand before

a job is concluded. It has yet to be an issue in Canada, but some U.S. projects have

missed out on the coveted ratings because of errors by contractors and design teams. That has led to court cases. Southern Build-ers vs. Shaw settled out of court after the developer lost out on a related tax credit in Maryland. Another US $1.5 million lawsuit linked to a condominium project in Manhattan’s Battery Park City is citing issues including a faulty green heating system that did not meet the original plans.

It is the type of potential challenge that should be at the back of any contractor’s mind. After all, there is no question that the interest in green building practices will continue to grow. It is sim-ply a matter of being prepared for the opportunities to come.

One of the things that set LEED apart from

many alternative standards is the way that it

demands measurable results. Every green

element of a project is verified by a third party.

...continued from page 39

Page 44: Contractor Advantage September / October 2010

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Page 45: Contractor Advantage September / October 2010

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CONTRACTOR ADVANTAGE september/october 2010 | 45

Imagine being able to offer your customers the opportunity to slash as much as 45% of their water consumption without having to make drastic cuts on usage.

This is one of the benefits of grey water recycling, a practice that is slowly trickling into the Canadian homeowner’s conscious-ness and which holds the potential of becoming an eco-friendly revenue stream for contractors.

Experts we talked to recently say that various municipalities in the country are moving ahead with developing guidelines de-signed to encourage and regulate the installation of grey water recycling systems both in new build and retrofit projects.

Here are a few things you should know:What is grey water? Essentially it is waste water generated from activities such as dishwashing, bathing and laundry.

Grey water differs from water from toilets which is designated sew-age or black water, which indicates that it contains human fecal matter.

Traditional plumbing normally routes grey water and black wa-ter through the sewage system. However, a wide variety of water conservation systems today exist in the market that enable people to stream grey water to a separate holding area and recycle it for uses such as landscape irrigation and flushing toilets.

Why is grey water recycling important? As urban and suburban populations swell, households increase the pressure on existing water supplies. In many areas groundwater supplies are already stressed and having a hard time keeping up with demand, accord-ing to Wayne Galliher, water conservation project manager for the City of Guelph in Ontario.

The city, which is some 100 km west of Toronto, expects to see an increase of about 50,000 people by the year 2031. With that come new homes, workplaces and the accompanying stresses to the water table.

“Grey water recycling extends the utility of used water and is one of the methods many municipalities in Canada are investigat-ing to find a solution to the problem,” Galliher notes.

A family of five typically uses 130,000 L of water each year. An effective grey water recycling system has the potential of reclaim-ing 30% to 45% of that amount and cutting 25% to 30% of water bill expenses.

In May of 2009, Guelph began a series of pilot projects to de-termine the feasibility of grey water recycling in the residential space. To date the municipality has installed 30 grey water system recovery devices in new build and retrofit projects.

By Nestor e. ArellANo

DippingInto Grey Water

Now that it is trickling into the homeowner’s consciousness, it can help contractors pour profit into their business.

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Page 46: Contractor Advantage September / October 2010

TECHNOLOGY

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Whatever your next project is, Mechanix Wear CommercialGrade Series and Hardware Series gloves will help you achieve it.Mechanix Wear Gloves. The Tool That Fits Like a Glove®.Toll Free: 877.278.5822 Phone: 604.542.7055 Fax: 604.542.7057 mechanixwear.ca

Page 47: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 47

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Galliher reports that initial studies indicate that all homes with grey water systems managed to reduce water consumption by 26% or more.Is grey water safe? While grey water contains contaminants such as soap, grease, food particles and micro organisms that could cause health hazards, it is easier to treat than black water.

The e-coli and other toxic contaminants in grey water can be effectively reduced to levels by chemical treatment and filtration to make the water practical for non-human consumption use, says Chris Thompson, owner of Project Innovations, of Barrie, Ont.

Project Innovations is a distributor of Brac Systems, a Montre-al-based firm that develops grey water recycling systems for resi-dential and institutional use.

“Of course you will not use grey water for drinking, but with proper filtration and treatment, grey water can be reused to flush toilets or water plants,” Thompson says.Grey water grey areas: Despite more than a decade of studies on grey water use, widespread adoption of such recycling systems in

Canada still has to take off. Much of this has to do with the fact that the use of grey water systems have not yet been written into many municipal building codes.

Galliher says Ontario and British Columbia, for instance, allow the installation of grey water systems, but government officials are still conducting consultations on incorporating specific provisions into existing building codes.

Similar regulatory code work is being done in Nova Scotia and Newfoundland, he adds.

Thompson is hopeful that interest in the systems is growing.

He currently makes the rounds of Ontario municipalities explain-ing how the Brac System works. “New builds and retrofits are al-lowed, but information sessions go a long way in helping to make it easier for homeowners to obtain their permits,” he says.

“There are still quite a few grey areas in the matter of grey water, as far as some municipal and building are concerned,” says Nancy Harrington, owner of Let’s Go Green Inc., a supplier of odourless composting toilets in Calgary. She had intended to ex- ph

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Why is grey water recycling important? As urban and suburban populations swell, households increase the pressure on existing

water supplies.

TOILET FLUSHING

LAUNDRY

KITCHEN & DRINKING

CLEANING

SHOWER & BATH

20%

10%

35%

30%

5%

Water recyling systems, such as the Brac Greywater recycling system (right), collects water from showers and tubs, filters out foreign particles, treats the water with a chlorine tablet to keep it free from bacteria and odours and uses the reclaimed water to flush toilets. Water used in tubs and showers accounts for about 35% of the typical family’s water use. toilets use another 30%. reclamation systems can help save up to 30% to 40% on an an-nual water bill, as well as helping the environment.Resource: Project Innovations

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Page 48: Contractor Advantage September / October 2010

48 | september/october 2010 CONTRACTOR ADVANTAGE

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tend her business to offer grey water systems but found out that using grey water was considered “illegal” in her province.

“Here in Alberta grey water is considered black water. I can not sell grey water systems because they are considered illegal,” she says.Some systems available in the market: Grey water systems can range

from simple homemade contraptions that capture rainwater to full blown systems that incorporate dual plumbing and filtration devices, says Geoff Jones, owner of EcoShift Canada Inc., a Cam-bridge, Ont. based company that distributes rain water harvesting systems as well as grey water sys-tems for multi-unit dwellings.

“Systems as small as those serving a family of four or larger units built for 10 to 200 family buildings or an institutional building are available in the market,” he says.

Various products have their own advantages and differentiating features, but typically systems capture or divert used water from the sewage sys-tem then pass the liquid through a filtration and

or treatment system that strains away solids and neutralizes to cer-tain extent toxic elements such as soap, grease and bacteria. Treat-ment systems often use chlorination to disinfect the water.

The grey water is then stored in a receptacle that can pipe it through valves for irrigating gardens or flushing toilets.

a concrete rainwater storage tank. concrete is an very cost effective and robust material for under-ground rainwater harvesting storage systems due to its inherent strength and weight.

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Page 49: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 49

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Galliher says Brac Systems units are among the more popu-lar brands in Canada. One of their smaller residential units, the RGW-150, which has a tank capacity of 150 L of water, can be had for around $2,000. The unit is about 115.5 cm tall, 57 cm wide and weighs around 41 kg. Installation and adding a pump and new line would likely bump the total purchase and installation cost to about $3,000.

Brac also offers a larger residential system, the RGW-502, which has a capacity of about 500 L.

Less costly, smaller stand alone units are also available such as the systems offered by Conservepump.com, according to Galliher.

The B.C.-based company has a smaller system that enables ho-meowners to flush toilets with bath water. The company’s home SmartBox System cuts down water consumption by as much as

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Despite more than a decade of studies on grey water use, widespread adoption of such recycling systems in Canada still has to take off. Much of this has to do with the fact that the use of grey water systems have

not yet been written into many municipal building codes.

composting toilets use the natural processes of decom-position and evaporation to recycle human waste. Waste entering the toilets is over 90% water, which is evaporated and carried back to the atmosphere through the vent sys-tem. the small amount of remaining solid material is con-verted to useful fertilizing soil by natural decomposition.

this natural process, essentially the same as in your garden composter, is enhanced in commercial compost-ing toilets by manipulating the environment in the com-posting chamber.

the correct balance between oxygen, moisture, heat and organic material is needed to ensure a rich environ-ment for the aerobic bacteria that transform the waste into fertilizing soil. this ensures odour-free operation and complete decomposition of waste.

When human waste is properly composted, the end prod-uct does not contain any pathogens or viruses (these are de-stroyed by bacterial breakdown). this nutrient-rich fertilizer can then be used on plants or around the base of trees, as part of the natural cycling of nutrients, reducing your need for commercial fertilizers and preserving local water quality.

Source: LetsgoGreen.com

from left: sun-mar corp.'s centrex 1000 and 3000 composting toilet systems and the low profile compact composting toilet.

Page 51: Contractor Advantage September / October 2010

CONTRACTOR ADVANTAGE september/october 2010 | 51

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30% and costs about $969 per unit. The company’s Garden Smart-Box, retails for $849. It consists of a barrel and hoses that captures rain water and allows users to water a garden with a drip irrigation or sprinkler system.Final Considerations: Contractors looking to earn some green from the emerging grey water trend should be mindful of at least two basic things, says Jones. “Number one, look for well designed and complete system; and number two, be mindful of sizing.”

He says that going with a manufacturer or distributor that offers quality product should be at the top of the list. For in-stance, be mindful of energy consumption. Grey water recycling units use pumping sys-tems that consume electricity.

Also, look into maintenance arrange-ments with the manufacturer or distributor.

Sizing covers both the dimensions and capacity of the system. Contractors should make sure that the system will fit the available space and will provide adequate recycled water for the homeowner’s needs.

“You will find that in some instances a grey water recycling unit might not be advisable at all, as the dwelling might not be able to produce the required amount of grey water,” says Jones.

For example, if a sink installation is being planned, consider

that the average person uses 3.7 L to wash their hands. Most toi-lets; however, need 6 L for a single flush. To make recycling viable, a system incorporating laundry water might be needed as well.

“Retrofits in general also tend to be more challenging than new builds,” Jones says.

In new projects, the builder can have dual plumbing lines worked into the building plan. Contrac-tors working on retrofit projects will have to make adjustments to existing pipes and in some cases might have to tear down walls. Time and additional material ex-penses can make some projects cost pro-hibitive.

Contractors must make homeown-ers aware of the maintenance costs of the system, says Harrington: “Generally, systems need to be cleaned and flushed regularly to ensure that bacteria is kept

at acceptable levels. Filters and disinfecting chemicals need to be replenished.”

She also suggests that before even starting, contractors should check local building codes to determine if grey water use is legal in the municipality.

It is best to deal with this matter earlier rather than later to avoid costly fines or having to tear down your work.

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dealing with the multitude of hazardous wastes found in homes, factories, institutions and other sites contractors work in, can be hazardous to their health, their bottom line and, ultimately, the business.

In the course of a job, contractors can be called upon to deal with the handling, storage and disposal of hazardous waste from the jobsite. There is a wealth of information available on proper handling; there is also ample evidence of the consequences for failing to do so.

In a few recent instances alone:• An Eastern Ontario contractor was convicted last winter of

improperly handling waste from a demolition job and fined $1,250 plus a victim surcharge fee;

• A Central Ontario company was convicted in March under the Canadian Environmental Protection Act for disposing of haz-ardous waste at a site not licensed to handle such waste. It was fined $3,000 as well as a victim surcharge fee;

• For similar offences committed between the fall of 2005 and the spring of 2007, the owner-operator of an Alberta compa-ny was fined all of the company assets and sentenced to 11 months of house arrest.

• What was supposed to be a simple demolition job of a derelict factory for a Central Ontario com-pany in the early 1990s could have turned into a financial and envi-ronmental disaster when workers arrived at the abandoned site in the Georgian Bay town of Midland and discovered dozens of leaking barrels. Workers had the presence of mind to immediately notify au-thorities; the municipal fire de-partment evacuated several nearby

factories while the substances were identified and removed. Fire officials later said the risk of explosion, fire and release of a toxic cloud was extremely high, and lauded the contractors for their handling of the unexpected difficulties.That reaction can serve as a model for contractors who find

themselves faced with similar situations, says Kate Jordan of the Ontario Ministry of the Environment’s communication branch. Since contractors can find themselves facing the removal, storage and disposal of hazardous wastes (for example, even though asbes-tos use was outlawed long ago many older structures still disgorge it), she advises contractors to ensure they are prepared for the task of dealing with hazardous waste, which includes contacting appropriate authorities.

“We would advise contractors, or anyone else that comes into contact with hazardous waste or materials they suspect to be haz-ardous, not to handle the material and to immediately report the incident to our Spills Action Centre (pollution hotline 1-866-663-8477; spill reporting 1-800-268-6060), which will assist in dealing with the situation,” she says.

Each province has a similar office that can address environ-mental concerns. Contact information is available through the Environment Canada website.

On the job, contractors can run into a vast range of what are consid-ered hazardous wastes, from chemical to solid to liquid (see descriptions be-low). In some cases, discovery can be unexpected (asbestos or lead paint-coated items in century-old, aban-doned buildings, for example) but barring the unexpected, contractors should be aware going in to a job that hazardous materials are on site.

Strict regulations exist around the safe handling, storage and disposal of hazardous waste. Failing to do so is not advised.

By Paul Welch

Page 54: Contractor Advantage September / October 2010

Confidence built-in

Some things never changeWith Aristokraft, you always know what you’re getting. Over a half-century of expert craftsmanship, can-do attitude, and zero tolerance for compromises have made us a perennial favorite of customers, builders and designers.

You’ll also take comfort knowing that the Good Housekeeping Seal adorns every cabinet we make.Through KCMA’s Environmental Stewardship Program, we’re making our global home a better place to live - for everyone, forever. www.aristokraft.com

Page 55: Contractor Advantage September / October 2010

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In Ontario, for example, says Clive Thurston, president of the Ontario Contractors Associa-tion, that information should be part of the pre-work paperwork.

“Basically, Ontario requires building owners to assess their sites prior to construction to iden-tify hazardous situations. These are then provided in the tender documents with the requirements to deal with them. This type of work is done by special firms such as asbestos abatement companies, or specialized companies that deal with chemical waste.

“Contractors would abide by the Environmental Protection Act, but most situations are iden-tified at the start and the work is contracted out. If we encounter it on-site we contact the appro-priate authority, notify the archi-tect or project manager and then employ the proper firm to deal with it.”

Jordan of the Ontario MOE agrees that contractors can pre-vent potential financial and legal headaches by going in to a job fully prepared. Provincial minis-tries of environment across Canada have detailed information available on their websites that serve as handy educational tools, including information on what is considered hazardous waste, the legal disposal requirements and information for companies that collect, store, transport and treat hazardous waste.

“We would encourage all contrac-tors to familiarize themselves with the requirements for handling, transporting and disposing of hazardous waste to en-sure that they do so in a way that is pro-tective of the environment and public health and operate in compliance with ministry regulations,” Jordan says.

“If contractors are unsure of the rules or have specific questions, they can either call the ministry office in their area to

speak directly with an environ-mental officer that can assist or speak with someone in our haz-ardous waste policy branch.

The Spills Action Centre is open 24/7 and callers will always be able to be in touch with staff that can advise them on the ap-propriate next steps and contact other agencies, like the fire de-partment or local health unit, as needed.”

Provincial ministries of envi-ronment have a lengthy invento-ry of rules and regulations for the handling of hazardous wastes. Jordan describes Ontario's ap-proach as “cradle to grave,” meaning there is a monitoring of sites using or storing hazard-ous waste from the time of gen-eration until its disposal.

One common hazardous waste that contractors run into, she notes, is asbestos. Like all hazardous wastes, there are de-tailed requirements for its han-dling and disposal.

The Ontario MOE has spe-cific regulations that set out the

rules for managing asbestos waste, including the requirement that asbestos waste cannot leave the location where it is gener-ated except for when transported off-site by a licensed hauler and taken to a site that is approved to accept it. When it is trans-ported, the waste has to be in sealed containers and carried by a hauler that has the proper certificate of approval from the min-ph

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When asbestos is present, material is wetted during demolition as part of a protocol to reduce airborne contami-nants, such as in the demolition of this home near calgary, alta.

Environment Canada definition of hazardous

waste: Hazardous wastes are those wastes

which, due to their nature and quantity,

are potentially hazardous to human health

and/or the environment and which require

special disposal techniques to eliminate or

reduce the hazard.

Confidence built-in

Some things never changeWith Aristokraft, you always know what you’re getting. Over a half-century of expert craftsmanship, can-do attitude, and zero tolerance for compromises have made us a perennial favorite of customers, builders and designers.

You’ll also take comfort knowing that the Good Housekeeping Seal adorns every cabinet we make.Through KCMA’s Environmental Stewardship Program, we’re making our global home a better place to live - for everyone, forever. www.aristokraft.com

Page 56: Contractor Advantage September / October 2010

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Feature

istry. There are also several other requirements that are in place to ensure those handling asbestos do so safely, including requirements that they do not create dust or spill the material and wear pro-tective equipment to avoid health impacts. The Ministry of Labour as well as the local public health unit may also be involved in incidents where asbestos waste is contained in a building, Jordan says.

Charged with overseeing envi-ronmental safety, ministries of en-vironment also have the power to ensure that companies comply with the law, she warns.

“We have the tools needed to ensure that these requirements are followed and that companies are in compliance with our conditions of approval. Officers do proactive in-spections of companies to ensure compliance as well as reactive in-spections if we receive a complaint

or hear concerns about a specific site or company. Officers have tools like notices, tickets and provincial orders that they can use to ensure compli-ance with our requirements. We also have the ability to conduct inspec-tions of companies that are suspect-ed of being out of compliance to determine if charges are warranted. Companies or individuals that are charged can face possible court fines and penalties if convicted.”

Industry regulators note that there are a variety of information sources on how to handle such ma-terial for contractors who are called upon to deal with hazardous waste. For example, many municipalities operate hazardous waste disposal sites for items such as paints, clean-ers and others. The sites should be listed on the municipal websites.

As well, many provincial ministries of environment and Environment Canada websites identify disposal sites

a number of Whmis hazard symbols include, from top row, radiation, biohazard, poisonous and infectious materials, second row, flammable and combustible materials, oxidizing materials, corro-sive materials, bottom row, hazardous materials and toxic materials.source: health canada

Page 57: Contractor Advantage September / October 2010

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within their jurisdictions, as well as the rules and regulations govern-ing hazardous waste handling. For example, Environment Canada’s website details the legal requirements under the Environmental Pro-tection Act at http://www.e-laws.gov.on.ca/html/regs/english/elaws_

regs_900347_e.htm.The federal government’s extensive policy paper, Hazardous

Waste Management: Canadian Directions outlines everything from definitions of hazardous waste to proper handling and disposal.

Chemical Waste:a variety of sources define hazardous wastes as a substance which poses a hazard to human health or the environ-ment when improperly managed. pro-vincial and federal environment agen-cies provide extensive lists of what are considered chemical wastes, but as a general rule a material is a chemical waste if it is:Ignitable — liquids with a flash point below 60°c or 140°f (however, just be-cause a material has a higher flash point, it still cannot be drain disposed).Corrosive — generally aqueous wastes with a ph less than or equal to two or greater than or equal to 12.5.Reactive — wastes that are unstable, explosive and capable of detonation or react violently with water.Toxic — a chemical that poses a hazard to health or the environment. this can be a gray area.hazardous chemical waste can include the following:• chemicals that can no longer be used

for their intended use (e.g. aged or surplus inventory)

• mislabeled or unlabeled chemicals• abandoned chemicals• material in deteriorating or damaged

containers• residuals in chemical containers• Diluted solutions containing hazard-

ous chemicals• used photographic fixer and devel-

oper• Debris contaminated with a hazard-

ous material (rags, paper towels, lab diapers, gloves, etc.)

Bio-hazard Waste:Bio-hazard waste is most often pro-duced in scientific and medical labs. hu-man and animal specimen cultures from

laboratories are considered a form of hazardous waste.

infectious agents are defined as any type of organism, bacteria or virus that cause harm to humans. any culture or stock that comes from an infectious agent is considered to be bio-hazard waste.

any waste from vaccines used in human health care or to treat animals is defined as bio-hazard waste.

specimens that are obtained during surgery that are suspected of containing infectious agents are defined as bio-hazard waste. Waste that contains blood or blood particles is also considered bio-hazard waste.

Bio-hazard waste must be made non-infectious before disposal. a pro-fessional should be consulted if there uncertainties about handling or disposal.

Toxic Waste:toxic waste is waste material, often in a chemical form, which can cause death or injury to living creatures. it usually is the product of industry or business but also has a variety of residential use, ag-riculture, the military, medical facilities, radioactive sources and light industry, such as dry cleaning establishments.

the term is often equated to discar-ded material that can pose a long-term risk to health or environment.

toxics can be released into air, water or land. in 1976 the united states intro-duced the toxic substances control act, which required the environmental pro-tection agency to regulate potentially hazardous industrial chemicals, inclu-ding halogenated fluorocarbons, dioxin and asbestos, the common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. chrysoti-

le asbestos, a form of serpentine, is the chief commercial asbestos.

Radioactive Waste:radioactive waste is a waste product containing radioactive material. it is usu-ally the product of a nuclear process such as nuclear fission, though industries not directly connected to the nuclear power industry may also produce radioactive waste. the majority of radioactive waste is low-level waste, meaning it has low le-vels of radioactivity per mass or volume.

radioactivity diminishes over time. in principle the waste needs to be isolated for a period of time until it no longer po-ses a hazard. this can mean hours to ye-ars for some common medical or indus-trial radioactive wastes, or thousands of years for high-level wastes. the main approaches to managing radioactive waste have been segregation and stora-ge for short-lived wastes, near-surface disposal for low and some intermediate level wastes, and deep and secure burial for the long-lived high-level wastes.radioactive Waste includes:• surplus radioisotope material in any

form (e.g., surplus materials in supp-lied form, sealed sources, etc.)

• material that has come into direct contact with radioactive material (e.g., gloves, culture dishes, pipettes, flasks, etc.)

• materials used for radioactive de-contamination (e.g., paper towels, sponges, etc.)

• materials that have come into incidental contact with radioactive material (e.g., bench top covering material, etc.)

• contaminated equipment used during radioisotope handling procedures that is no longer required and cannot be cleaned (e.g., centrifuges, gel ele-ctrophoresis equipment, etc.)

To properly assess if a material is considered hazardous waste, contractors must be aware of the various types of hazardous waste. Below is a general guideline:

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Mark Simpson knows a thing or two about busi-ness. As a professor and coordinator of the In-stitute of Entrepreneurship and Community In-

novation at Toronto’s George Brown College, there are few questions about commercial matters that throw him for the proverbial loop.

One that does stump him is where in the business cycle is the best place to launch an expansion. “If I knew that,” says Simpson after a long moment, “I would be sitting on a private island with all the toys.”

In other words, no time, broadly speaking, is really bet-ter than any other to expand your business, although you can help yourself a good deal with some basic research and education and by choosing the right reasons to grow. The first question a contractor must ask himself is why he wants to expand, says Simpson. Is it sales? Is it revenue? Is there another reason? Your answer is crucial to your chances of success, Simpson continues. If you are expanding to boost sales, it is time for a rethink, he cautions. Increasing profits, however, is something else again and there are lots of ways to do that, such as cutting costs, rather than the inherently risky proposition of expansion.

No time, broadly speaking, is really better than any other to

expand your business. You can help yourself a good deal with

some basic research and education and by choosing the

right reasons to grow.

BY DaviD ChiltoN

Business Growth

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Once the contractor has answered that most fundamental question, the next question becomes how to achieve his or her aims. Opinion on the topic varies. Ralph Belisle, president and founder of T.Q. Construction in Burn-aby, B.C., says more work from exist-ing clients was the ticket for him. “I started as a self-employed carpenter,” says Belisle, recalling his firm’s humble beginning in 1985. As his reputation grew he hired a helper and then took on a carpenter friend of his after that. He now employs a staff of 26.

Ron Coleman, a Richmond, B.C.-based commerce graduate, accountant and certified management consultant, whose latest book, Becoming Contrac-tor of the Year, deals with trade and specialty contractors only, says he asks clients, “‘Tell me what your business is going to be like in three years? How would you get from here to there?’ That is their to-do list.”

Coleman’s professional advice is that simpler is better. He says the way for a contractor to expand his business is more referrals: “Contractors get work based on relationships.” Further, he advises

to look where employment levels are. If they are rising in one section of your municipality or region then that is the place to target, since people who are steadily employed are more likely to want reno-vations, additions and the like. Of course, Coleman

says, stay away from areas with increasing levels of unemployment because the opposite will be true.

Paul Charette, chairman of the board of Bird Construction in To-ronto and past chairman of the Canadian Construction Association, says that, early on, growth will be “organic.” That means expansion based on referrals and more work from an existing client base, since

any business doing less than $10 million a year will not grow through acquisitions, he says. “Your reputation is paramount,” Cha-rette cautions because of this. “You need to protect your reputation.”

Ray Cowan, program co-coordinator at Centennial College’s Centre of Entrepre-neurship in Toronto, argues that another way to expand is to start what he calls “a gallery of artisans” or what Charette de-scribes as “joint ventures.” Cowan says he sees this gallery as a formation of skilled trades broad enough to be attractive to cli-ents and able to tackle any job.

It would be like the virtual compa-nies found in high tech and in certain other service industries. However, skilled trades tend to have their own way of do-ing things, Cowan points out, care must be taken when the relevant pieces of the new enterprise are being assembled. More-over, he continues, “People tend to think of the trades as specialists rather than gen-eralists,” so some client education is likely necessary. Coleman’s perspective is differ-ent. He says he tries to dissuade his clients from taking on too many different types of work.

As for advertising, that other tried pho

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and tested, but not entirely predictable, way to attract new busi-ness, opinion again varies. Cowan says an Internet presence has become inevitable because the online space has replaced print media for contractors. “It is startling,” Cowan admits; however, the spiffiest website in the world will be a waste of time if it does not have a link with a phone number or email address where a poten-tial client can reach the contractor. A response to any such query, of course, must be prompt and informative. Simpson agrees that advertising is an option for a contractor, but Coleman’s view of it is qualified. He advises contractors against advertising generally, but says flyers can work and are an inexpensive option. Canada Post, for example, delivers unaddressed mail for about 10¢ a piece.

After the 'whys' and the 'hows' of an expan-sion come the 'whats': what do I need to know to succeed? This is the point where the saw and the wrench are put down and what might be called “business and research” take over. Simpson says one of the most basic bits of research a contractor can pursue is building permits. “Building permits are a really good indication of how bullish people are feeling (about the economy),” he points out. Real estate sales and prices are also useful instruments to as-sess the potential of a neighbourhood, town or region.

Once a contractor has determined there is room to expand, whether through researching building permits, real estate or anything else, his next task concerns money, specifically the financing of the kind of growth envisioned. Here the experts all sound a caution. Coleman, who provides financial analysis for contractors, says with expansion skilled trades try to become business people. “They are very good at direct costs, but bad at overhead and other costs.” Re-member, says Coleman, 25% of contractors lose money, and construction contractors are sec-ond in business failures in Canada (after restaurants). Belisle understands very well how a business can flounder. T.Q. is now growing at 30% a year now, he says, but earlier the company went broke twice.

Where does the financing come from? In most cases it comes from a line of credit, says Cowan, which is how Belisle staked T.Q.’s expansion. Typically lines of credit come from a bank, but both Charette and Coleman say those institutions are not always wel-coming. “Banks are not very construction friendly, in my opinion,” says Charette, who should know something about finance, since

Bird Construction is a $1 billion a year company. If they are not friendly then a sound business plan to present this perhaps reluc-tant lender is essential. “Contractors need a competent business plan,” he continues. “Business plans are the biggest tool a contrac-tor overlooks. It really is his tool for his future.” Learning how to draw up a business plan can be straightforward, says Charette. He recommends a contractor join the CCA, if he is not already a member, and going to a business plans conference, although there are alternatives such as independent consultants and busi-ness schools in colleges and universities.

As well as establishing a sound financial basis for growth, and all the experts agree costs should never be under-estimated, a second major consider-ation must be the amount of time a grow-ing business will demand from its owner. A CIBC study in 2005 found that 94% of the people who work for themselves agreed that they work longer hours than those who work for others. In the study, 21% of small busi-ness owners said they work from 60 to 69 hours a week, 10% said they work 70 to 79 hours and 14% put in more than 80 hours a week. Belisle was one of those contrac-

tors who logged long, long hours and who for some years worked from home. “It is not good in a family way,” Belisle admits about the time he spent on his business. “My family needed me.” Coleman counsels his clients to work themselves out of a job when they are pursuing growth. Trying to work in their usual occupa-tion and chase new business at the same time means nei-ther gets done well, so the former has to go. “Take control and delegate,” says Coleman.

When asked for a top three list of mistakes to avoid, all the experts put in-

adequate financing at the top. Their suggestions for the second and third positions vary, but everyone mentions the need to estab-lish a support network, whether it is with suppliers, employees or new hires or even with a mentor who has been through the trials of expansion himself. They mention too not expanding beyond your capabilities.

“Do not over-extend yourself,” warns Charette. “Do not go wild at the beginning,” adds Simpson. If you do, successful ex-pansion will prove even more elusive than outguessing the busi-ness cycle.

As well as establishing a sound financial

basis for growth, and all the experts agree costs

should never be underestimated,

a second major consideration must be the amount of time a growing business

will demand from its owner.

Page 62: Contractor Advantage September / October 2010

62 | september/october 2010 CONTRACTOR ADVANTAGE

No one ever wants to be at risk, but con-tractors must be constantly aware of the possibilities of injury, disability and illness for themselves and their employees. The good news is with the right information and actions, risk can be well managed.

Here are three ways for contractors to manage risk: employee benefits, disability insurance, and critical illness coverage.Employee Benefits: Why? They are a phi-losophy for dealing with an employee in the event of a death, disability, health or dental problem. It is a fact that having em-ployee benefits helps you attract and keep key employees.

Providing benefits to your employ-ees lets you off the hook. If one of these events occurs with one of your employees, and they happen to be in financial diffi-culty, they might approach you for help. Benefits provide the financial security for your employees that they will be taken care of. They offer the peace of mind that you will not have to become a creditor. Benefits also provide the same fair level of coverage for everyone, thus eliminating a potential legal issue if you provide more aid for one employee than another, even if their situations are entirely different.Disability Insurance: Disability insurance provides you with income protection. To decide if you need it, invest the next few moments to think about the financial con-sequences if you were unable to work for an extended period of time. I know you believe that it will never happen to you, but just look around. Do you know anyone who has

suring your greatest asset, your income.Critical Illness: Critical illness coverage is a great way to provide immediate cash for an unexpected illness. CI pays a tax free lump sum of money to you in the event of any of 21 illnesses. The big three are cov-ered: heart attack, stroke and cancer. I like my customers to have a little CI to provide the dollars required during the waiting period for their disability coverage.

Castlecare for Contractors has simpli-fied the process for getting or reviewing benefits. We know your time is money and that your time is limited. If you have any questions at all, visit our website at www.castlecare.ca and give me a call. Let us dis-cuss what is right for you.

a heart problem or cancer? Who is recover-ing from an accident? If you are anything like me, you do not have to look too far.

Once you realize that illness and injury happens, your next question will be cost. We build plans that meet your budget sim-ply by answering three questions. First: how soon you want to get paid? Second: how long you want to be paid? Third: how much you want to be paid? There is no reason to not investigate in-

Take a few moments to think about the financial consequences if you were unable to work for an extended period of time.

By Mark BeckhaM

Managing Risk

Mark Beckham, BSc, is one of the Principals of Bencom FSGI (Fi-nancial Services Group Inc.) His professional experience includes employee benefits and financial services including retirement prod-ucts and insurance. He can be reached at [email protected] or by telephone at 888-664-5555 ext. 301.

Become inspired by the real-life design options from JELD-WEN Windows and Doors.

From superior selections of wood, vinyl and aluminum clad windows to wood, steel

and fi berglass interior and exterior doors, JELD-WEN is your comprehensive source for

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To learn more about our products and services, visit JELD-WEN.ca.

I N S P I R E D by R E A L L I F E

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©2010 JELD-WEN of Canada, Ltd. Reliability for real life is a trademark of JELD-WEN, inc., Oregon, USA. All other trademarks are the property of their respective owners.

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Disability insurance provides you with income protection. To decide if you need it, invest the next few moments to think about the financial consequences if you were unable to work for an extended period of time.

Page 63: Contractor Advantage September / October 2010

Become inspired by the real-life design options from JELD-WEN Windows and Doors.

From superior selections of wood, vinyl and aluminum clad windows to wood, steel

and fi berglass interior and exterior doors, JELD-WEN is your comprehensive source for

energy-effi cient, long-lasting and environmentally friendly products.

To learn more about our products and services, visit JELD-WEN.ca.

I N S P I R E D by R E A L L I F E

C E L E B R A T I N G

©2010 JELD-WEN of Canada, Ltd. Reliability for real life is a trademark of JELD-WEN, inc., Oregon, USA. All other trademarks are the property of their respective owners.

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Page 64: Contractor Advantage September / October 2010

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