b'STATE OF THE INDUSTRYWHATS AHEAD FOR CONSTRUCTIONBUILDINGS WEEK KEYNOTE LOOKS AT WINDS OF CHANGE By Warren HeeleyBUILDINGS WEEK 2020 WASneed to advocate for fairness in the project A NEW VIRTUAL EVENT as a resultbid process.of COVID 19. The annual Buildings Show held in early December in Toronto hadContractors cannot continue to work for to be reinvented on a virtual platform forlow margins, considering the increasing thousands of design and constructionrisk in project contracts. The industry professionals across the country. This year,accepts high risk/low margin contracts the event that provides opportunities toeven when the market is booming. A new view new products, attend educationalapproach needs to be developed where sessions and network with others in thecontract language involves lower risk to the industry went online. contractor. In Smiths words, Dont get me The opening keynote featured Geoff Smith,wrong. We need to continue to compete president and CEO of EllisDon, and wasfuriously. However each company must sponsored by the Toronto Constructionhave a better understanding of how to Association (TCA) and ConstructConnect.compete for contracts with better margins Smith provided insight on the state of theand lower risk.construction industry and the challengesGEOFF SMITH, ELLISDONthat lay ahead to more than 300 listeners.DIGITIZATIONWe are a $300-billion industry andEmbracing IT to create more efficiency represent about 15 per cent of Canadasuncertain future. After 50 years of littleand then continuing to operate in the annual GDP, stated Smith, Consideringmovement in industry productivity, asame fashion is simply wrong. Companies our impact on the Canadian economy,change is comingone created byneed to change processes to gain the we need to garner more respect fromdigitization, technology and consolidation.optimum performance from technology. governments and Canadians in general. Canadian companies need to be a part ofFor example, purchasing software should this approaching wave. include the commitment to a product that Starting off, Smith provided perspectivewill adapt to future needs of the company on a serious issue that has come toCHANGE AHEAD in the digital world.the forefront in North America: racism.Consolidation is still changing the industry Racism in the Canadian constructionas projects evolve.Large projectsConstruction is a data rich industry and industry is created by a few ugly peopleare becoming huge as the number ofthe industry has been giving away its and is having serious effects on peoplecompanies bidding on them shrinks anddata for too long. Companies then find of colour, said Smith. Unacceptablecompanies become larger by partneringthey have to buy back their data, and data remarks, graffiti and other racist behavioron bids. EllisDon in the past had up to sixis becoming very valuable. We need to is occurring on jobsites. We must becompetitors bidding on large jobs. Nowcompile industry data and use it to help vigilant to rid racism from our industry. there are two bidders or only one, saidmembers compete, noted Smith.Smith. The bid process is experiencing Smith went on to say Canadians arefewer participants. This should lead to newIn closing, Smith spoke about the effects presently living in crazy times and manyways for construction tenders. of the COVID pandemic. The industry is people are feeling panicked. The goodin a difficult position right now. The initial news is there is no one in government orA changed bid process could be based onlockdown measures halted construction any other institution that knows what therelationships with clients and the potentialprojects, and hard-fought prompt payment future holds. So industry predictions are asof single bidding companies with a greatregulations were set aside. Construction good as any in terms of whats ahead. deal more transparency. Smith feels it haswas finally recognized as an essential become a harder world in construction inservice and projects were restarted, but Construction companies are going torecent years with the death of trust andwith confusion around who was going to have to reinvent themselves to createhandshake agreements. Contractors atpay for the lost time on the sites. This will a sustainable competitive edge in thisthe point of delivery in the supply chainlikely take years to sort out in the courts. 12Quarter 4 2020 BUILDERSDIGEST'