Canadian Construction Association discusses prompt payment legislation proposal

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1 October 20, 2011 Canadian Construction Association discusses prompt payment legislation proposal Courtesy of The Daily Commercial News The Canadian Construction Association (CCA) is prepared to lead a national dialogue on prompt payment nationwide among its members thanks to legislation proposed in Ontario on the matter. There are some philosophical discussions CCA should have to get some feedback from the rest of the country. One of them is the extent to which industry should be going to government and asking for an imposition of terms, into a construction contract, that you cannot contract out, said Michael Atkinson, CCA president, to the association s general contractor council recently. You re essentially giving up to government the ability to negotiate your contract from both sides, whether its owners and general contractors, general contractors and subtrades, all the way down. An update on the prompt payment legislation, proposed by the National Trade Contractors Coalition of Canada (NTCCC) in Ontario, was provided at CCA s recent general contractor council meeting in Quebec City. The legislation s genesis was as a private member s bill introduced by Ontario MPP Dave Levac on June 1. The provincial government was prorogued that same day until after the recent October provincial election. The NTCCC worked with Levac on the proposed bill and consulted all three provincial parties. The legislation drew initial criticism from the Ontario General Contractors Association (OGCA). The association said it also is an advocate for prompt payment but felt the proposed legislation was not effective since it did not address the concerns of general contractors. Since June the OGCA and NTCCC have met to discuss the legislation to build a broader proposal to address each of their concerns. In this issue...continued on page 2 Breakfast with Leaders Event 4 AGM & Gala Registration 5 COR Certificates Now Available 8 Weekly Tenders 10

2 CCA Discusses Prompt Payment Legislation (continued from page 1) They ve taken those and made some revisions. At our last meeting we came to an agreement to develop something that applies to subcontractors and general contractors, David Blake of OGCA told CCA s general contractors council. Both OGCA and NTCCC have agreed to base the legislation on CCA CCDC contract language and to have Geza Banfai, senior partner with the national firm of Heenan Blaikie LLP, develop the legislation s framework. The CCA general contractor council decided it would be best to begin a larger consultation on the issue because the possibility of prompt payment legislation being explored nationwide is a reality. Given that the final wording (of Ontario s prompt payment legislation) may set a precedent in other provinces, the general contractors council is inviting the CCA trades council to try and develop a national strategy to improve the payment and flow of funds that effect all contractors in the contractual chain, said John Bockstael, CCA s general contractors council chair, at the association s board of directors meeting in Quebec City. Atkinson noted that though there exists prompt payment legislation in the United States it varies significantly from state to state and that the final wording in Ontario s proposed legislation is the key. He reminded CCA members that when it comes to any type of prompt payment legislation they should keep in mind the extent to which they would allow statutory imposition of a clause in a contract, across the board, that you cannot contract out. Clive Thurston, OGCA president, explained in a subsequent interview with the Daily Commercial News, that research conducted by the OGCA and NTCCC which compared such legislation worldwide revealed that in all but three jurisdictions a pay when paid clause exists alongside the prompt payment provisions. Thurston added that the agreement between NTCCC allows OGCA on developing the legislation will ensure the rights of general contractors are respected. In the end, we are the ones that have to deal with the owners, we are the ones who have to get the money, said Thurston. Anything that strengthens that ability is good for everybody, he added. We believe it is the right thing to do and we are excited to get involved and look forward to moving with the NTCCC who are taking the lead on this. Equipment rental rates use them! The MHCA is the only publisher of equipment rental rates in Manitoba. Adjusted annually to reflect the cost of owning and operating equipment, this reference tool is published in the MHCA Annual Directory. It is there for industry use to ensure proper return on your capital investment. Need the most current Hourly Equipment Rental rates? They are there for you to use in the 2011 MHCA Directory! Contact Jason Rosin at or jason@mhca.mb.ca for any questions or to order additional copies. Th e Heavy News Weekly 2

3 The MHCA Welcomes New Members! Harmax Services Ltd. Megan Harper Box 874 Virden, MB R0M 2C0 Ph: (204) Elite Safety Services Inc. Marc Watt 33 Regent Cres. Brandon, MB R7B 2W7 Fax: (204) Additional Information: Supply and installation of helical screw pile foundations and tension anchors; Rig (swamp) mat placement and renewal; Excavation and site preparation; trackhoe services Ph: (204) Web: elitesafetyservices.ca Additional Information: Provides safety training, consulting, and rescue services to the construction industry. Impact Utilities Inc. Shane Smith 399 Woodydell Avenue Winnipeg, MB R2M 4M6 Ph: (204) Fax: (204) Additional Information: Provides directional drilling for underground utilities, septic tanks, and fields. MaRK YOuR CalEndaRs! March 20-22, 2012 The Winnipeg Convention Centre Heavy Construction Education Expo: Building WORKFORCE Excellence Th e Heavy News Weekly 3

4 Upcoming MHCA/COMMITEE meetings : MHCA Events Committee Tuesday, October 11 12:00 Noon Education Training & Gold Seal Wednesday, October 12 8:00am Aggregates Tuesday, October 18 12:00 noon Major Tendering Info Session Tuesday, November 1 7:45am CanadInns Polo Park Informative Breakfast with Bob Brennan Tuesday, November 8 7:45am CanadInns Polo Park Annual General Meeting Friday, November 25 8:00am Winnipeg Convention Centre Note: All Meetings to be held at our new office at Unit Ellice Avenue unless indicated. Breakfast with Leaders Event November 1, 2011 New Government Tendering Policies The Manitoba Government is committed to expanding the skills of the province's workforce and investing in capital projects. To further this commitment, the following three policies have been implemented province-wide for tendering on publicly-funded capital works projects: 1. Tendering Requirements Policy - to ensure compliance with legislative and safety requirements 2. Apprenticeship Training and Development Policy - to increase employer participation in trades training and increase the number of apprentices in Manitoba 3. Aboriginal Persons Training and Development Policy - to increase Aboriginal participation in construction through training and development Presenters: Izabella Pokornowska, Treasury Board Secretariat, Gina Lovstad, Employment Standards Division, Labour and Immigration, Cordella Friesen, Apprenticeship Manitoba, Entrepreneurship, Training and Trade Cheryl Lavallee, Labour Market Skills Division, Entrepreneurship, Training and Trade Location: Time: Price: To Register: CanadInns Polo Park Ambassador 4 Room 7:30am Registration/7:45am Breakfast/8:00am Presentations $30/person includes breakfast Contact Christine Miller, MHCA Events Manager at or by to christine@mhca.mb.ca Th e Heavy News Weekly 4

5 annual General meeting Friday, November 25, :00 am 12:00 noon Winnipeg Convention Centre Pan Am Room (2nd Floor) Keynote Speaker: Mr. Bob Silver» Co-Chair of the Premier s Economic Advisory Council (PEAC)» Chancellor at the University of Winnipeg» President of Western Glove Works Bob will reflect in his role as Chair of PEAC, on the northern visions and economic and social opportunities associated with the broad Churchill, Canada s Northern Gateway Vision. Awards & Membership Presentations to follow. $35.00/person No of tickets: Chairman s Gala A Night to Remember...Mardi Gras Style! Friday, November 25, 2011 Cocktails: 6:30 pm Dinner: 7:30 pm Tables of 8 and 10 Silent Auction & Raffle proceeds supporting Variety, the children s charity of Manitoba $ GST / person (all inclusive) No. of tickets Delta Winnipeg: Room rates starting at $119.00/night Reservations: Block Code: 1111MANI_002 Company: Contact person: Ph: Fax: Please invoice: Visa/MC/AMEX # Exp date: Card holder: Signature: Fax this form to Christine at the MHCA For more information call or at christine@mhca.mb.ca Th e Heavy News Weekly 5

6 The Import of Capacity By Peter Hall, Vice-President and Chief Economist of Export Development Canada It takes teamwork to build an economy. Economic development plans at the local, regional and national level play a key role. Over the years, much has been written and myriad plans have been implemented by economic developers. Does all the economic transformation we have seen in the past 20 years in any way change the shape of modern economic development? Historically, development programs have focused on encouraging domestic investment, attracting foreign investment, creating hubs of activity, building exportoriented business capacity, targeting cool new niche industries, trying to increase value-add in traditional industries, diversifying on a number of fronts the list goes on. The initiatives are noble, although generally mercantilist in nature, and have yielded good results where intelligently implemented. Is this the appropriate model for the future? Let s assume this moribund global economy does recover: business activity revives, employment picks up and unemployment starts to drop. Let s assume at the same time that all of our economic development plans across the country simultaneously start bearing fruit. Good for Canada, eh? Not necessarily. By 2016, Canada s labour force hits an unusual wall. Because of aging, our population aged the bulk of our labour force population starts to shrink rapidly just four years from now. We may succeed with setting up business activity, but we may not be able to staff it up. Certain regions are under more pressure: three of the four Atlantic provinces already have shrinking labour force populations. Suddenly, there seems to be a problem with the model. Japan has been faced with the same dilemma for 20 years. Would that we could look at their response and learn. Instead, everyone fears going down the same path that for Japan has yielded little more than sideways growth, a moribund consumer and a dangerous escalation of national debt. Given the state of aging in the West, failure to overcome constraints could be devastating. Is there a solution? Simply allowing real wages to increase may price us out of the market. We can try to increase immigration, but we face two problems: first, other nations are also vying for skilled immigrants; and second, their home country is probably experiencing much higher growth than we can generate. Increasing population naturally takes too long. Thus far, the facts are not promising. Clearly, in the next recovery we will have to use our scarce labour more carefully and creatively. As such, programs aimed at increasing the skill levels of existing workers and new graduates are well-placed. How will this help? What if we changed our approach to business? Facing labour constraints, why not import labour without actually having to move it? We could fan out the labour-intensive production to other parts of the world that have a surplus of the right kind of labour, while developing and managing the business here. This formula requires foreign investment, and allows us to move our labour up the value chain increasing Canadian labour productivity at the same time. The bottom line? The old model of economic development won t work in the next recovery. In this case, Give, and it shall be given unto you is a good adage. As labour pressures rise, giving some of our business to others can increase our capacity, our global market reach and our overall prosperity. Th e Heavy News Weekly 6

7 NEWS RELEASE WCB Communications, 333 Broadway Tel.: (204) Winnipeg, Manitoba R3C 4W3 Fax: (204) For Immediate Release Date: October 17, 2011 Online WCB Registration Now Available for New Employers (WINNIPEG) New employers in Manitoba can now begin the process of registering for the Workers Compensation Board of Manitoba (WCB) online from anywhere at any time. The online Employer Registration Request allows new employers to begin the registration process online at their convenience instead of over the phone or in person. The application is available 24 hours a day, seven days a week and employers need only provide the information one time. The online Employer Registration Request is just one more way that the WCB is providing more convenient service to our stakeholders, explains Alice Sayant, Vice-President of Prevention, Assessments & Customer Service at the WCB. This new application uses technology to improve the service we provide to stakeholders and complements our other online services such as Incident Reporting, Claims Online, Clearances and SAFE Work Reports. We re recognizing the changing needs of stakeholders and we are continuing to make our website a true one-stop shop for employers. Most businesses in Manitoba are required to register for workers compensation. By supporting an online registration process, the WCB is not only making the process easier for employers, it is also enhancing employer account management by making it completely electronic. We recognize that many new employers in Manitoba manage virtual offices with very little staff, says Sayant. We are making it as easy as possible for them to comply with regulations to register their business and protect their staff and themselves. The online Employer Registration Request is available at Registration by telephone and in person (during regular business hours) will continue to be accepted. Th e Heavy News Weekly 7

8 WORKSAFELY COR Certificates Have Arrived! WORKSAFELY Advisors now have new COR certificates to distribute to certified companies, showcasing their hard work and achievement of a successful, COR certified safety program! Contact your advisor today at for more information. Also, inquire about how to receive a set of site signs and COR banner! Your Company Here Th e Heavy News Weekly 8

9 Training Schedule Construction Safety Excellence Register by:»» Denine Rodrigues at Fax: Cancellation Policy: The WorkSafely policy states cancellation must be made at least two business days in advance, otherwise full course fee charge will apply. October 3-4 October 5 October 6-7 October 11 October 12 October 13 October 13 October 14 October 14 October October 19 October 20 October 21 October 21 October 21 OCTOBER 2011 COR Leadership COR Principles COR Auditor Safe Work Procedures Prime Contractor Back Injury Prevention (1/2 day AM) Fatigue Management (1/2 day PM) Safety Administration (1/2 day AM) Toolbox Talks Train the Trainer WHMIS (1/2 day AM)/ TDG (1/2 day PM) COR Auditor Refresher (1/2 day AM) Excavating & Trenching (1/2 day AM) Flagperson (1/2 day PM) First Aid 1 - CPR NOVEMBER 2011 November 10 Excavating & Trenching (1/2 day AM) November 10 Flagperson (1/2 day PM) November COR Leadership November 16 COR Principles November COR Auditor November Train the Trainer November 23 WHMIS (1/2 day AM)/ TDG (1/2 Day PM) November 24 COR Auditor Refresher (1/2 day AM) Construction Safety Officer October 7 CSO Prep Course October 28 CSO Exam COR Training December 5-9 Thompson, MB REMINDER: WorkSafely requires at least six people registered to deliver the course. Customized training is available for your specific requirements. Call the WorkSafely Office at (204) for more information. Th e Heavy News Weekly 9