"Actually, a super-project like this becomes a conglomeration of a whole bunch of small projects," says Russ Anthony, president of provincially owned Vancouver Convention Centre Expansion Project (VCCEP) Ltd. "We anticipate, and have been receiving, support from what you'd call smaller business even now."
Site preparation is almost complete on the $615-million expansion, which will come close to tripling the size of the existing convention centre at Canada Place.
Anthony, along with Liberal MLAs Lorne Mayencourt (Vancouver-Burrard), Richard Lee (Burnaby North) and John Yap (Richmond-Steveston) recently celebrated the installation of the 888th pile, which is considered good luck in Chinese folklore because of its revered eights.
All piles on dry land have been installed and all piles in underwater areas will soon be complete, says Anthony.
He points to the $20.7-million contract for a glazed-window exterior wall, a joint venture between Inland Glass & Aluminum of Kamloops and Vancouver-based Advanced Glazing Systems Ltd., which operates internationally, as an example of how small businesses can participate.
"And as we get into the interior of the building, the finishing and the fine carpentry and so on, we would anticipate (the involvement) of more small businesses," says Anthony. "Then once the building is up, of course, small business on the retail and commercial side will have a home here, too."
He advises small companies to monitor the BC Bid web-site (www.bcbid.gov.bc.ca) for upcoming contracts, and be prepared to partner with larger firms if they see jobs they can do but need help managing them.
"We're going to spread the impact of this project around the province, including small businesses," says Anthony.
So far, more than $170 million worth of deals, including $126 million for the beginning of the construction phase, has been awarded.
Delta-based Canron Western Constructors Ltd. received a $66-million contract to provide structural steel, while Delta-based Graham Industrial Services was awarded $36.9 million to provide foundation concrete, Surespan Construction Ltd. of West Vancouver received $2.2 million for a pre-cast utility corridor and Surrey-based Holland Landscapers earned $700,000 for growing the plants that will be part of the green roof.
Upcoming major deals include mechanical/electrical contracts and deals for the supplying of rebar and metal decking for the green roof. The roof-construction contract also remains to be awarded.
So far, says Anthony, the project is on schedule and on budget, despite tight labour and commodity markets.
Last fall, the province kicked in an extra $50 million to boost the budget from its original $565 million, to cover a $25-million hike in construction costs and pay for an expanded walkway around the site, other new features and more commercial space.
The convention centre expansion is being jointly funded by the province ($272.5 million), Ottawa ($222.5 million), Tourism Vancouver ($90 million) and $30 million in commercial revenue.
One commodity that will be plentiful at the new facility is wood. The B.C. government requires that VCCEP highlight the use of wood as much as possible, in order to promote lumber sales.
The lumber industry has been advising VCCEP on ways to "source" lumber in a way that's fair to producers and VCCEP while maximizing the use of wood in the building. But Anthony does not expect the recently announced tentative settlement of the Canada-U.S. softwood lumber dispute to result in softer domestic prices.
"We're just hoping that there'll be a stronger and more competitive industry, and that'll help us in the long run."
Laura Jones, B.C. and Yukon vice-president for the Canadian Federation of Independent Business, which represents 100,000 small and medium-sized companies across Canada, says she's glad Anthony recognizes small businesses are important to the project. But she questions whether the promise of plenty of work for small business will become reality.
"I'm not sure how well it works in practice," says Jones. "It's nice to hear them talk about it, but will they try to do it?" Jones wonders whether VCCEP can get the workers and materials that it needs, given shortages that are affecting all sectors of the construction industry across the Lower Mainland.
Jones says VCCEP's ability to complete the project on budget is important, because government-funded infrastructure projects often fall on the backs of small business owners - as happened recently with the parking tax which TransLink, the Greater Vancouver Transportation Authority, receives to help fund $20 million worth of its projects.
But Philip Hochstein, president of the Independent Contractors and Business Association of B.C., which represents 700 construction firms across the province, says small companies won't have anything to complain about when it comes to contracting opportunities.
He bases his comment on the project's terms of reference, which require that any job over $50,000 be put out to open tender.
"I think there's going to be ample opportunities for all sizes of companies to participate in the construction of the convention centre," says Hochstein.
He says small businesses will get most of the small jobs related to interior finishing, because "big companies tend not to be flexible and competitive enough to do that."
Retailers and other commercial tenants will also choose small contractors to complete their respective outlets.
"Frankly, in this market, we've got more work than we can handle, so (the opportunities for small companies) will be enough to satisfy them," says Hochstein.
(Monte Stewart can be reached at monte@businessedge.ca)
