b'Presidents Message OIRCABoard of DirectorsPresidentJason Campbell Dean Chandler Roofing Ltd.Past PresidentDarcy BeitesDouro Roofing Sheet MetalContractors Ltd.First Vice PresidentMike GodfreyGodfrey Roofing Inc.Second Vice President / TreasurerMark Mollison Conestoga Roofing & Sheet Metal Ltd.Third Vice PresidentRyan WarnerCovertite Eastern Ltd.DirectorMark Agius Flynn CanadaDirectorJoel DandeleDantech Building Technologies Inc.DirectorMarinos BarlasSchreiber Brothers Ltd.DirectorRiskyDavid RauthRauth Roofing LimitedDirectorBusinessONTARIODoug MaikawaTrio Roofing Systems Inc.ROOFING NEWS is a market-ing and information periodical published for the Not the Movie By Jason Campbell,Ontario Industrial Roofing Contractors Association by MediaEdge Publishing. President, OIRCA Advertising in ONTARIO ROOFING NEWSis restricted to the member companies of OIRCA.Published for:C onstruction is a risky business for all of us who make a living at it. Imtract. Although not always, more often than not the breach is related to anOntario Industrial Roofing Contractors Associationsure each construction subtrade feels their industry is the riskiest, butoverrun on a proposed schedule.190 Attwell Drive, Suite 350Toronto, ON lM9W 6H8I must say that just about every aspect of ICI roofing is risky. Just get- By their very nature, liquidated damage clauses can create an adversarialTel: (416) 695-4114 l Toll Free: 1 (888) 33-OIRCAting out of bed in the morning can be risky for those of us who are in ICIenvironment between contractual parties. To a GC or owner, this clauseoirca@ontarioroofing.comroofing contracting. can be advantageous because it can in essence be used as a cudgel to try andwww.ontarioroofing.comI could literally write a thesis on the subject of risk assessment and riskenforce an aggressive project schedule that can be very difficult or almostPublished by:allocation in my trade, whether it be from the perspective of hazards, finan- impossible for the contractor to achieve. Secondly, it can nullify the need cial, operational or strategic risk. In this column, though, I will spare youfor them to prove or quantify the actual damages suffered should a breach33 South Station St. l North York, ON l M9N 2B2a long dissertation on the topic. That said, I would like to address a fewTel: (866) 480-4717 l Email: robertt@mediaedge.casalient points. in the contract be encountered. To a roofing contractor, however, it can 531 Marion St. l Winnipeg, MB l R2J 0J9Risk management and liabilitythese words reverberate throughout theleave them exposed to liability while also creating a conundrum. The con- Tel: (866) 201-3096 l Fax: (204) 480-4420construction industry and certainly within the confines of the roofing indus- tractor can: www.mediaedgepublishing.comtry. As a roofing contractor, a huge part of your operation is assessing risk and1. Refuse to bid the project outright. Presidentputting parameters in place to try and mitigate potential liability. Kevin Brown2. Clarify the bid to exclude the damages clause. Senior Vice President l PublisherAs any owner or operator of a roofing business knows, the risks associ- 3.Make an allowance in the bid for potential damages. Robert Thompsonated with operating a business are numerous and can be quite onerous. FromGroup Publisher fire damage to water damage, workplace injuries or even roof system failures,None of these options seem like they would be ideal to either party. Michael BellCurrently, it would seem that this type of clause errs on the side of theSales / Branch Manager these are just a few of the inherent risks. Nancie PrivOver the last few years, contractors have faced further exposure to liabil- GC or owner. If this were not the case and the GC or owner felt compelledSenior Editor ity in relation to CSA A123.21, Standard test method for the dynamic windto have this clause as part of their contract, then why would there not be anJustyne EsserySenior Design Specialist uplift resistance of membrane roofing systems. In some instances, contractorsincentive clause attached for early project completion? Marisa Giesbrechtwere being asked to take on more responsibility with the design and to pro- It would stand to reason that if a schedule overrun would be deemed aDesign Specialist vide wind uplift calculations and present these as part of their pre-construc- detriment to the owner, then conversely an early completion would be ofBethany GiesbrechtNational Sales Executive tion document submittals. The accountability for engineering presents anbenefit to the owner. Furthermore, shouldnt a contractor be entitled toPat Johnstonincreased vulnerability to the contractor, not to mention that many contrac- implement caps or thresholds on the liquidated damages to try and miti- All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, tors may not carry Errors and Omissions (E&O) insurance as part of theirgate potential losses? without the prior consent of the publisher. corporate insurance coverage. Published November 2024More recently, there is another issue that is garnering some attention: liq- I guess this begs the question: do liquidated damage clauses belong inPublication Agreement #40787580uidated damages in contracts. Now this is not a new development, as it hasroofing contracts at all? If these types of clauses are ubiquitous, shouldOntario Roofing News is printed on 10%there be further discussion and push back from the roofing industry andpost-consumer FSC certified paper using soyaappeared in some contracts before, althoughit certainly seems to be becom- based inks. When necessary to mail an issuethe industrys associations to either amend or preclude them? in an enclosure, we use an environmentally-ing more prevalent. friendly,100% oxo-degradable poly-wrap.In short, liquidated damages is a clause that can be implemented into aThis particular topic is on the agendas for discussion at both OIRCAs contract to assign financial responsibility to the contractor for damages likelynext Risk Management Committee meeting and the Canadian RoofingPlease return undeliverable copies to:to be incurred by the general contractor (GC) or owner for a breach of con- Contractors Associations (CRCAs) next Board of Directors meeting. 190 Attwell Drive, Suite 350, Toronto, ONM9W 6H88ONTARIO ROOFING NEWSISSUE 3 2024 THE ONLY SOURCE FOR PROFESSIONAL ICI ROOFING CONTRACTORS IN ONTARIO ORN'