Canada

market
intelligence
2021
making the difference
02 Turner & Townsend is an independent
Economic overview: professional services company specializing in
Outlook for 2021
program management, project management, cost
03 and commercial management, and consulting
Regional intelligence: across the real estate, infrastructure, and natural
Western Canada resources sectors.
provincial breakdown

05 It is my pleasure to present
the 2021 edition of our Canada
Cost guide market intelligence report. This
Indicative costs for report provides a market synopsis,
Canadian markets along with the latest cost guide
for a broad range of building
asset classes across major cities
07 in Canada. This edition of the
Regional intelligence: Canada market intelligence
Eastern Canada report focuses on Emerging from
provincial breakdown Covid-19 — positive business
outcomes.
First, we address, despite
operating in a challenging
environment, the ongoing
investment in infrastructure.
We then focus on the advances
in technology and innovation.
Finally, we share insights on the
long-term care sector and plans
to protect our most vulnerable
citizens through the acceleration
of government programs.

A global pandemic forced social Our aim for this edition

09 distancing, lockdowns, and a of the Canada market
Realizing the concentration on health & safety
intelligence report is to
extraordinary: measures around the world.
highlight how organizations
rethinking Covid-19 is a humanitarian crisis
infrastructure assets and not the first of its kind. In are adopting to a period
this environment we have learned of change, a new way of
to adapt to the ‘new normal’ and working, while maintaining
14 prepare for the ‘next normal.’
business continuity.
Embracing the However, as we continue to focus
future: our efforts to flatten the curve,
and now with the introduction of I hope you enjoy the report and
using technical
a highly anticipated vaccine, there that you discover our insights to
innovations to solve
is end in sight to this worldwide be useful and enlightening.
site-based data collection
challenges health emergency.

The pandemic has demanded Gerard McCabe

industries and organizations Managing Director
17 reimagine their focus on people,
A new era for operations, and technology.
long-term care: Recognizing the need to adapt,
design and cost building resilience and agility into
implications for long- operating models is the key to
term care in response to stabilization and recovery. This
Covid-19 in Ontario report aims to provide a glimpse
into some of the organizational
transformations and positive
business outcomes that arose
because of the pandemic.

1
Economic overview
Following the worst recession on record, Canada’s
economy is forecast to rebound robustly in 2021,
supported by strong government fiscal and monetary
stimulus. However, downside risks to the near-term
outlook are prevalent, as the nation battles with its
second and more severe wave of Covid-19.
In 2020 Canada’s economy
contracted by 1.9 percent in the
March quarter and 11.3 percent
in the June quarter, placing the
nation’s economy into its deepest
recession on record. Enforced
lockdowns to stop the spread
of the virus and a severe shock
to oil prices weighed heavily on
Canada’s Gross Domestic Product
(GDP) over the first half of 2020.
Following the reopening of the
economy over the September
quarter, GDP rebounded by 8.9
percent, representing the largest
quarterly growth on record.
Figure 1:
Turner & Townsend
General economic forecast
Turner & Townsend • Canada market intelligence 2021
Pent-up demand from the
lockdown, strong fiscal and
monetary policy and growth in
major trading partner’s economies
were the key drivers of this
rebound.
Entering 2021, the nation
continues to battle with its second
more severe wave of Covid-19
and this presents a downside
risk to the size of the economic
recovery expected in 2021. With
daily Covid-19 cases climbing at
a record pace, varying degrees
of lockdowns and restrictions
have been reintroduced across
the country. While the impact on
Provincial economies will be varied,
overall, weaker growth is anticipated
for Q4 2020 and Q1 2021. The
International Monetary Fund (IMF)
is forecasting Real GDP to contract
by 7.1 percent over 2020, before
rebounding to 5.2 percent growth in
2021 and 3.4 percent in 2022.
In response to these shocks to the
economy, robust monetary and
fiscal stimulus has been handed
down, helping to support economic
activity through the downturn.
Consumer confidence has been on
the rise since October, in line with
the strengthening of the labour
market. However, in December
2020 employment recorded its
first decline in 6 months, falling by
62,000 due to forced shutdowns
across the country. Despite this,
consumer confidence continues to
increase, reaching its highest point
in January 2021 since the start of
the pandemic.
The roll-out of the vaccine, coupled
with people’s preparedness from the
first lockdown are helping to boost
confidence across markets and drive
new investment. Delays with the
roll-out of the vaccine or a larger
than expected hit to employment,
present significant downside risks
to confidence and new investment
activity in 2021.
Canada’s exports were hard hit
over 2020, however, with the aid of
substantial government stimulus,
trading partner economies are
continuing to strengthen, which
we expect will increase demand
for Canada’s exports over 2021.
Additionally, as borders open and
international and domestic travel
increases, oil prices are expected
to strengthen further, which
will support Canada’s economic
recovery.
1. https://www.imf.org/en/Home
2
Cost guide
All figures are hard construction costs only in CAD$ (dollars)/ft.2

Vancouver Calgary Edmonton Saskatoon Winnipeg Toronto (GTA) Ottawa Montreal Halifax Moncton St. John’s

Residential (above grade) Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Low rise – basic quality 150 205 115 157 130 170 125 170 130 180 175 220 205 255 190 245 185 240 135 185 150 170
Medium quality 200 245 157 210 160 215 190 225 185 215 190 225 220 265 210 250 205 250 175 220 190 225
High quality 235 340 210 320 220 330 225 345 225 345 235 360 255 325 245 305 240 315 230 320 240 345
High rise medium quality 315 390 227 270 200 255 180 265 175 250 175 260 220 265 210 255 200 245 185 240 180 250
High quality 380 520 258 400 265 425 275 480 260 460 270 475 275 425 265 405 255 395 250 395 250 400
Townhouses 150 235 127 180 100 160 100 170 105 175 105 180 155 180 140 150 150 170 150 170 150 165
Single family homes 235 485 184 375 180 420 160 505 150 465 155 480 275 345 210 295 200 290 215 310 225 315
Student housing 235 315 184 265 195 280 195 280 200 295 210 295 230 335 195 285 215 310 215 310 215 315
Senior housing 190 305 200 265 210 280 180 270 175 260 175 270 230 260 195 230 215 245 215 245 215 250
Commercial (above grade) Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Core and shell – low rise 200 265 185 245 190 245 185 240 195 255 205 270 200 265 190 265 185 240 205 270 205 275
Medium rise 215 295 200 270 215 295 210 280 210 285 220 290 220 290 210 280 195 270 220 295 210 275
High rise 315 400 300 385 310 410 295 385 305 390 310 405 315 410 290 395 285 365 300 355 320 370
Fit out – medium quality 180 295 165 270 170 280 165 285 165 285 175 290 175 290 170 290 145 265 180 295 180 295
High quality 350 675 315 620 320 625 330 600 335 615 355 645 360 595 350 580 305 505 310 500 320 530
Retail Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Shopping malls 190 295 175 270 190 295 185 285 190 295 200 300 200 250 185 230 190 230 190 230 185 230
Strip malls 145 190 155 205 150 190 140 185 135 180 145 185 160 200 140 180 155 190 160 190 155 190
Outlet malls 155 205 155 205 155 205 150 205 145 195 155 205 185 210 170 195 175 200 180 200 175 200
Automotive retail 195 295 180 255 195 300 190 275 195 285 205 300 210 310 210 290 200 290 180 270 185 275
Education Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Universities 330 455 320 425 330 440 320 485 325 485 360 535 370 495 340 450 350 475 350 470 350 470
Colleges 305 395 300 370 310 395 300 380 310 380 330 415 370 440 340 395 350 415 350 415 350 405
Secondary/High schools 230 280 230 285 250 300 230 275 230 280 180 235 200 250 180 225 190 230 190 235 185 230
Elementary schools 210 270 210 270 205 275 190 260 195 265 170 225 175 230 150 205 170 210 170 210 165 210
Childcare facilities 320 395 280 375 285 380 275 390 275 375 295 415 320 370 290 340 295 350 290 350 295 350
Private schools 355 430 285 360 285 370 280 360 290 370 360 465 370 405 340 365 350 380 335 375 340 380
Health Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Hospitals 570 720 555 745 545 735 530 850 545 880 575 920 625 1000 565 910 590 945 585 935 640 950
Clinics 240 345 235 380 255 405 250 380 355 370 225 400 250 375 230 345 230 350 230 350 235 350
Long-term care facilities 250 300 225 275 225 275 225 275 225 275 280 325 280 325 250 300 225 275 225 275 225 275
Government and public buildings Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Libraries 280 395 305 400 290 420 330 405 325 390 335 405 315 440 290 400 295 415 290 410 295 405
Emergency services 370 435 210 425 205 415 285 390 310 415 315 435 315 370 290 340 295 350 290 350 295 350
Detention centres 395 510 385 500 380 495 375 475 390 505 405 520 370 495 340 450 350 475 350 470 370 470
Court houses 570 685 555 660 535 630 520 620 530 635 580 695 495 620 450 565 475 590 470 585 480 580
Places of worship 365 685 360 380 385 415 335 625 340 635 375 695 370 495 340 450 350 475 350 470 370 470
Industrial manufacturing and hi tech Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Heavy industry 125 185 110 150 110 155 105 160 110 165 120 175 120 175 115 175 175 200 105 165 115 175
Light industry 85 150 85 140 65 135 75 120 80 125 70 120 75 120 70 115 155 175 60 105 65 115
Warehouses 100 185 85 165 65 130 65 110 65 110 60 100 55 110 50 105 155 175 45 95 105 185
Data centres 690 915 660 875 670 880 635 850 650 875 690 925 760 1010 685 920 700 940 700 935 695 930
Sports, hotels and leisure Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Aquatic facilities 480 570 375 480 360 460 380 450 375 445 485 580 505 630 450 570 475 590 470 585 470 580
Stadiums (per seat) 4230 6400 4050 6075 4035 6000 3815 6000 3905 6140 4040 6350 4200 6000 4200 6000 3365 4485 3335 4445 4240 5300
Athletics facilities 310 470 305 480 295 475 285 445 285 450 285 460 315 440 290 400 295 415 290 410 295 405
Budget hotels 170 215 175 225 170 210 145 200 145 195 155 200 170 220 145 190 160 200 160 200 150 200
3–4 Star hotels 240 355 235 325 235 330 225 345 220 335 230 350 245 360 235 350 205 315 230 290 230 300
Luxury hotels 395 525 355 460 360 485 375 740 390 450 405 460 440 505 410 465 415 475 410 470 405 470
Theatres and performing arts 630 855 535 745 515 720 480 775 560 785 580 810 600 835 580 820 520 730 525 740 635 850
Museums and visitor attractions 525 935 500 745 495 725 450 790 475 845 520 925 505 1010 450 920 475 945 470 930 480 850
Life sciences Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Research and development facilities 480 595 430 555 420 545 410 515 430 535 470 585 480 605 345 460 350 500 445 560 480 530
Pharmaceuticals 470 710 430 645 420 625 410 615 430 640 470 700 480 725 345 460 350 500 445 665 480 635
Site development and urban regeneration Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Site servicing (per acre) – commercial/industrial (water,
145,000 300,000 130,000 310,000 170,000 415,000 190,000 385,000 185,000 375,000 175,000 350,000 168,000 355,000 155,000 350,000 125,000 315,000 125,000 245,000 150,000 340,000
hydro, sanitary, storm, grading, asphalt & sidewalks)

Contributor | Marcos Sibal, Director

5 6
Cost guide Turner & Townsend • Canada market intelligence 2021
Regional
intelligence:
Eastern Canada
Ontario

Contributors | Darren Cash, Director & Douglas McNeil, Director

Despite the current headwinds, Ontario’s rebound looks

promising. Continued investment in infrastructure will
serve as an economic stimulus.
„ While a strong rebound was observed in Ontario over Q3, the size of
the recovery was less than most had anticipated. However, pent up
demand significantly boosted consumer spending over the quarter
and the value of building permits issued for single family homes
in Ontario increased by 18 percent in September. This significant
growth in residential construction continues to place pressure on
an already thin labour pool in a sector that continues to deal with
increasing lumber prices and insurance rates. The total value of
non-residential permits increased by $805M in September which
represents over half of the value in this sector.
„ Growth is expected to be more modest over Q4 2020 and Q1
2021 with the resurgence of the Covid-19 virus and community
transmission across Ontario. While the extension of the Canada
Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent
Subsidy (CERS) will undoubtedly assist millions of Ontarians during
this period.
„ Despite this, the Provincial Government is continuing at pace
with infrastructure investment. By 2041, Ontario’s population is
forecast to have grown by approximately 30 percent and so, despite
the current headwinds, the Government is continuing with its
investment initiative in schools, hospitals, public transit, roads, and
bridges. The acceleration of certain aspects of this work is forecast
to offset the majority of the decline in private investment during
the upcoming turbulent months. Overall, this is good news for the
industry. The turbulent nature of decision making over this time is
likely to lead to continued volatility in pricing in the Ontario market.
Contractors continue to face upward pressures owing to the impact
of Covid-19 on site. In addition, the acceleration of infrastructure
and federal real estate investment will continue to challenge the
shortage of skilled labour within the Ontario market, indicating
certain aspects of the supply chain remain at or near capacity.
Ontario

1. https://economics.td.com/provincial-economic-forecast
2. https://www.conferenceboard.ca/focus-areas/canadian-economics/provincial-outlook
3. http://www.rbc.com/economics/economic-reports/quarterly-economic-update.html
4. https://economics.td.com/ProvincialLocalAnalysis

7
Regional intelligence: Eastern Canada
Realizing the extraordinary:
infrastructure leaders
respond to uncertainty
Rethinking infrastructure assets
Contributor | Stephane Chapuis, Director
As we have learned at Turner &
Townsend, both in Canada and
around the world, infrastructure
leaders are adapting and evolving in
response to uncertainty with bold new
approaches on multiple fronts.
Organizations globally are navigating
a series of challenges as they respond
to the disruption of 2020. This is
prompting a rethink in ways of
investing, planning, developing and
delivering infrastructure assets.
Through our work on major projects
globally, we have engaged with senior
leaders over the last ten months to
understand how they are adapting
their long-term strategies, changing
their ways of working and getting
closer to their people and the wider
supply chain. It has enabled us
to understand:
„ Which areas of the industry are
at the forefront of new ways of
working?
„ What changes organizations and
project teams are considering that
will have the biggest impact?
„ How are organizations planning for
change to stick in their business?
„ How can new approaches
overcome conventional barriers in
the infrastructure sector?
1. h
 ttps://www.buildforce.ca/en/node/11857
9
Global infrastructure
market trends
Our findings show that the need
for modernization has long been
recognized by the industry, with
change notably needed in the
following areas:
Offsite construction
Modern methods of construction
should be embraced to enable a
culture of innovative challenge and
thinking. It has been determined
that a seven percent net saving
in project time could be achieved
through greater use of prefabricated
components, by taking construction
processes off site and into the
factory.1
Data
Effective decision-making for
project delivery and operation need
proper data gathering to create an
effective evidence base. An example
of this is from COMET (Community
of Metros Benchmarking Group)
where 32 cities are globally sharing
data from their railway systems to
inform industry-wide benchmarks.
Productivity
Greater tracking needs to drive
productivity and automation.
According to BuildForce Canada1,
the “Canadian construction
labour demand to intensify over
the short term will require more
than 300,000 new workers over
the next decade. Ontario is
expected to peak in 2020, driven
by major project requirements
in the Greater Toronto Area
(GTA) and Southwestern Ontario.
These include light rail transit
(LRT) projects, two nuclear
refurbishment projects, and other
infrastructure-related demands.
This will be followed by a second
peak expected in 2026.”
Digital
Embracing the challenge of
embedding digital solutions
and using big data to increase
transparency, using real-time
proactive decision making. 72
percent of construction firms
worldwide consider digital
transformation a key strategic
priority.
Realizing the extraordinary
Supply chain
We need to focus attention on
understanding and investing in the
capability, resilience and alignment of
the supply chain. According to Supply
Chain Canada’s The Digital Supply
Chain report,2 “The Canadian supply
chain is a critical part of the Canadian
economy, enabling $1 trillion worth
of goods movement, generating $66
billion in gross domestic product
(GDP), and employing more than
878,000 people (excluding truck
drivers) across Canada.”
Project outcomes
We need to look beyond delivery to
the full benefit over an asset’s life.
Typical asset management practices
are estimated to save 15 to 30
percent in operational and capital
expenditure. We need to adopt
Asset Management best practices
to improve services and return on
investment.
Skills
Investing in the right skills, leadership
and capacity needed to avoid a
future ‘capability drain’ is essential.
Employment in Canada’s construction
and maintenance industry is
anticipated to grow by 50,200
workers by 20292. The industry will
need to recruit more than 307,000
workers over the decade to keep
pace with demand, according to the
labour market forecast released by
BuildForce Canada.
2. https://www.supplychaincanada.com/media/reports/The%20Digital%20Supply%20Chain%20Final%20Report.pdf
3. https://www.canada.ca/en/employment-social-development/programs/agenda-2030/national-strategy.html#h2.02-h3.01
4. https://www.aia.org/
Turner & Townsend • Canada market intelligence 2021
Alliancing models
An approach to encourage
collaboration to achieve shared
objectives through improved
behaviours and better sharing of
risk and reward are necessary to
drive continuous improvement
in quality and innovation. In the
1990’s we saw the emergence of
alliancing models.
These models were introduced to:
„ Align the interests of the Client
with the interests of the supply
chain through a commercial
framework which rewards good
performance against defined
project outcomes;
„ Remove constraints or barriers to
effective project execution;
„ Create a no-blame culture
focused on proactive risk
management and successful
delivery through “best for
project” behaviours; and
„ Embrace collaborative
approaches to increase
productivity and avoid waste.
While these models have been
more prevalent in the UK and
Australia, they are relatively new
to the Canadian marketplace.
With that said, an alliance model
is being used for the restoration
of Union Station in downtown
Toronto. These types of models
serve well for large complex
projects and are much needed
for the continued modernization
within the industry.
Integrated project delivery
Similar to alliancing models,
another trend we’ve begun to
see in Canada is integrated
project delivery (IPD) which
is defined as, according to
the American Institute of
Architects,4 “a project delivery
approach that integrates people,
systems, business structures
and practices into a process
that collaboratively harnesses
the talents and insights of all
participants to optimize project
results, increase value to the
owner, reduce waste, and
maximize efficiency through all
phases of design, fabrication,
and construction.” It attempts
to align the business interests
of all parties involved with the
project to drive value and help
to manage and mitigate project
risk. Today, in Canada, there
are numerous builds under
way using this delivery method
and the expectation is the
momentum will continue.
Sustainability
Supporting communities to
enable social, economic and
environmental value to meet
Canada’s 2030 Agenda for
Sustainable Development.3
10
Key area of change
Changes were realized in 2020
through four key areas:
Reacting to uncertainty
The disruption of the past ten
months has enabled much-
needed change. The need for
modernization at an industry-
wide level translates to practical
challenges daily for project teams.
Like industry challenges — these
have been prevalent for years.
In 2018, we asked industry
leaders what the most significant
barriers were to deliver successful
projects. Their answers identified
three key areas of concern,
including meeting growing
demand, adapting to change
and increasing productivity and
efficiency as per the chart below.
Asset owners and operators
„ Rapid reprioritization: adapting
asset maintenance, working
with suppliers to reprioritize
works and reduce costs.
Hibernating some projects in
the aviation and rail sectors.3
„ Crisis teams and re-planning
focus: creating dedicated
Covid-19 teams to focus on
cost and schedule impacts and
re-planning critical path works
to enable continued progress
on critical projects.4
Investors and funders
„ Resetting investment criteria:
public and private investors
adding greater rigour to
business case requirements,
with emphasis placed on
sustainability, diversity and
social value.
„ Government stimulus
packages: many countries
including Canada are
stimulating long term
economic growth by investing
in infrastructure projects and
pipelines.
Sector approaches in 2021
The Covid-19 pandemic has
impacted infrastructure sectors
differently. A key finding across
our interviews was how rail, roads,
utilities and defence are closely
monitoring the aviation sector’s
response.
Aviation
„ Operating model changes —
business needs have fundamentally
shifted; long term organizational
design changes are being explored
„ Development of new business
models at an industry level in
conjunction with airlines,
investors and governments
Building resilience in
four ways
Our interviews identified four areas
where leadership teams have
adapted business approaches to be
more flexible and resilient.

Supply chain Ways of working

Our interviews in 2020 confirmed
that these issues were still
prevalent. They also demonstrated
how organizations sought to
respond and implement rapid
change.
Major projects and programs
„ Reviewing and restructuring
works and teams: development
of plans to optimize works and
recover lost time. This was
common in transport, power and
defence sectors.
„ Securing skills and capability
for the long term: encouraging
„ Supporting suppliers: We anticipate digitally enabled
re-negotiation of payment
delivery with real time integrated
terms and contract conditions,
control to help projects respond to
such as advance payments and
future volatility. When managing
more active payment cycles.
projects, processes are increasingly
„ Engaging regularly: direct
focusing on outcomes to enable
discussions between clients
flexibility and alignment to a
and specialist contractors are
helping to identify risks and common purpose.
safeguard staff. Greater focus on staying ahead
of the curve and pre-empting
1. https://www.turnerandtownsend. changes in markets is taking
com/en/about-us/annual- place. We are seeing action-
review-2019-2020/people-capacity-
and-skills/ focused scenario-planning to
2. h
 ttps://www.turnerandtownsend. support risks. Organizations are
com/en/expertise/sectors/transport/ starting to integrate asset-related
rail/
functions, seeking to remove siloed
3. h
 ttps://www.turnerandtownsend.
com/en/expertise/services/cost-and- approaches and encouraging cross-
commercial-management/ function working and mindsets.
4. h
 ttps://www.turnerandtownsend.
com/en/Covid-19-response/

retired specialists to return to 5. h

 ttps://www.turnerandtownsend.
com/en/about-us/corporate-
work in the rail and transport responsibility/diversity-and-
sectors.1,2 inclusion/

11
Realizing the extraordinary
„ Integrated business functions
stripped back to a base level,
with the potential for greater
outsourcing to manage peak
workloads.
Roads and rail
„ Exploring efficiency and cost
reduction measures as these
organizations are predominantly
publicly funded and government
funding could be reduced in the
future
„ Investments and projects that
support regulatory change and
carbon net zero
„ Preparing for new business case
requirements and performance
measures
„ Faster project delivery with
simpler governance.
Defence response
„ Investing in technologies and
capabilities
„ Exploring efficiency, cost
reduction measures and
accelerating transformation
as the defence sector pivots
investment towards digital/cyber
and space capabilities
„ Partnering through commercial
arrangements that incentivize
an achievement of outcomes
and objectives through the
agreement of contingent fees.
6. https://www.turnerandtownsend.com/en/expertise/sectors/utilities/water/
Utilities (including power and
water) 6
„ Building collaborative
arrangements with supply
chains to maintain security of
materials, capability and supply
to reduce ongoing disruption
„ Investing in technologies and
capabilities.
Business leaders have had
to respond rapidly to global
uncertainty, but their experiences
have provided important lessons,
helping them understand their
new ‘optimal’ position for the
future.

People trends investment and outcome focused

We are seeing a clear movement
towards a stronger capability
culture with a more ‘hands on’
client approach. It is helping us
reimagine how team structures
can best operate to become more
integrated, lighter and inclusive.
Better leadership which has the
right depth and breadth, should
focus on creating a culture where
everyone has clear responsibilities
and a clear voice.
We envision the unification of
energized teams who are now
working in different locations,
through a simple and accountable
structure, linked to a clear
operating model.
Supply chain trends
We anticipate greater recognition
within projects on the lack of
understanding of the wider supply
chain, its fragility and the impact
that disruption has on risk, cost
and schedule.
We are witnessing a drive towards
a much more integrated partnership
approach with supply chain
incentives. This includes increased
interaction between major
and smaller contractors. Some
organizations are considering
carrying out the function of
major tier one contractors
themselves.
Strategy and
performance trends
Stronger integration is being
driven between asset-related
functions to allow a whole life
perspective. Audits of costs and
primarily ‘conditions driven’ cost
changes including re-financing,
As we focus on the future,
overhead reduction, reduced cost the learning we have done
of build and re-planning of work over the past year has been
will be key. essential. As evidenced
We see developments through by the feedback compiled
increased awareness of risks within this article, industries
being taken on by organizations,
are showing innovative
business model changes and
and resilient solutions
scenario planning to determine
future strategies. to overcoming market
This will involve greater focus challenges that will be of
on identifying or limiting supply long-term benefit for now
chain risks, instead of focusing on and likely for many years
smarter market engagement and
to come.
proactive performance assurance.

12
Turner & Townsend • Canada market intelligence 2021
Embracing the
future: using technical
innovations to solve site-based
data collection challenges
We are no strangers to adapting to change in
the project services world.
Contributors | Ernesto Munoz, Project Director, Andy Lenihan, Associate Director &
David Thompson, Senior Consultant
Every few years, a major change
brings about a paradigm shift in
our industry. For example, in 2008
the economic downturn1 taught
us to adjust to staff consolidation
as industries contracted. This
adaptation, although devastating
for many, introduced a new way
to approach resource allocation
for project services. In short,
companies were forced to do
more with fewer people.
Today, we’re faced with similar
challenges on a different scale,
due to the Covid-19 pandemic.
As per the Economic Impacts of
Covid-19 on Atlantic Construction2
report regarding major project
investment, “A pause in several
mega projects, deferral of work
and productivity challenges will
reduce 2020 spending by 35% or
$4.3 billion” in Atlantic Canada.
Many major projects across
Canada have been delayed,
1. https://www150.statcan.gc.ca/n1/pub/11-402-x/2011000/chap/construction/construction-eng.htm
2. https://www.apec-econ.ca/covid/industry/construction/
13
deferred or cancelled as a result
of Covid-19.
To survive in this changing
environment, major industries
will need to confront these
challenges head-on, and
determine approaches that
will stand the test of time.
Again, to adapt to change, we
need to seek innovative solutions.
The challenges to in-field data
collection from Covid-19
Speaking specifically to industrial
industries such as oil and gas,
Covid-19 has had a significant
impact on the ability of workers
to collect data from the field.
The traditional method of having
multiple team members on-
site gathering data has been
untenable.
As a result of the new regulations,
organizations have had to:
„ Reduce exposure and limit
on-site workers
„ Investigate and test new
technology
„ Plan an approach for a post-
Covid-19 work environment
2020 taught us that working
remotely was ostensibly
realistic. Advancements in video
conferencing allowed many
businesses to go “distributed.”
Shifting to video conferencing
for boardroom meetings and
conference calls between owners
and contractors has been a
relatively smooth adjustment,
all things considered.
Unfortunately, some functions
are more difficult to distribute.
Decisions that are driven by
validated site-based data still need
to provide quantity, progress, and
cost certainty for large projects.
Embracing the future
There’s no viable replacement for
good solid analysis from the field.
Many projects rely on current data
collection at the source.

So how do you get the same

quality of on-site information while
limiting exposure to other people?
What new practices are going to
influence this process for now and
into the future?

Photogrammetry and LiDAR:

Advancements in remote data
collection
Photogrammetry has been an
emerging technology for gathering
reliable data for surveying,
mapping, and measurement over
the past several years. When
coupled with advancements in
drone and photogrammetry-
capable camera technology, an
applicable solution now exists
for gathering data in the field,
while also limiting the number
of required personnel on-site.
A mining company or a refinery
is likely already using drones for
research and analysis, so that is a
cost that is already being incurred.
At Turner & Townsend,
we have developed an
elegant solution that couples
with drone technology to
conduct advanced imaging
and project assessments in
various scenarios.
Drones with photogrammetry
are currently being used in some
North American projects to collect
data, which reduces the need to
put workers in the field to collect
information. In situations where
a company does not use its own
drones, Turner & Townsend has
provided them. The drones can fly
over a facility’s assets collecting
high-resolution video capture for
a safe and thorough inspection
without having to fly over people
or property.
Drone technology isn’t only for
heavy industry applications. Drone
technology has advanced to allow
for data capture within confined
spaces for close visual inspections
in multiple industries. Having a
drone conduct inspection instead
of having a person perform a
manual inspection is extremely
valuable on multiple levels. For
applications where scaffolding
needs to be constructed for
a technician to access areas
manually, a drone could eliminate
the temporary structure costs, as
well as the liability and insurance
considerations of having a
technician personally conduct
the assessment. Because of the
simplicity of flying a drone instead
of sending a technician, it reduces
overall technician time on the
field, and allows the ability to
validate and quantify data from
captured footage over previous
flights.
Instant and accurate quantity
capture results from the field
can be analyzed and shared
with current communication and
interface tools. For example,
Turner & Townsend’s QuanTTum3
solution assists in predicting
quantity, weight and cost
assurance on large-scale projects.
By combining photogrammetry
data with tools like QuanTTum,
we get a much clearer picture
of the size and scope of the
requirements for our project.
Photogrammetry is a step above
2D and 360 degree photos and
video capture, as it provides
a clear visual representation
with accurate measurement

3. https://www.turnerandtownsend.com/en/expertise/sectors/oil-and-gas/quanttum/

14
Turner & Townsend • Canada market intelligence 2021
capabilities. Drones can also be
equipped with different types of
measurement sensors depending
on the application. For example,
by deploying thermal sensors
we can assess the integrity of
a building’s HVAC system by
measuring even flow and areas of
potential heat loss through leaks.
Where drone platform
photogrammetry is used at a
macro-level, Turner & Townsend
has also adopted the use of
LiDAR for the collection of data
at a micro-level. LiDAR is now
becoming ubiquitous technology
for consumer applications,
and advancements in mobile
computing have allowed for the
implementation of LiDAR-based
solutions that a technician can
carry with them on a tablet.4
In fact, Apple has adopted
LiDAR technology with their
new iPhone 12 Pro.
Using a combination of these
technologies offers the following
benefits:
„ Reduces personnel time in
the field
„ Mitigates accommodations
for poor weather conditions
„ Provides faster access to
rendering and sample analysis
„ Reduces cost from having
fewer on-site personnel
„ Reduces health and safety
considerations for on-site staff
With photogrammetry-equipped
drones, a technical consultant
can spend a couple of hours in
the field then return to the office
to send the analysis and samples
to the places that need to see
it. From around the world, you
can have access to the sample
analysis data. Having drone-
based photogrammetry and LiDAR
factored into the workflow both
4. https://www.apple.com/ca/newsroom/2020/03/apple-unveils-new-ipad-pro-with-lidar-scanner-and-trackpad-support-in-ipados/
15
lessens on-site staff requirements What Covid-19 has done is forced
and also increases the level of everyone to seriously consider
analysis that can be done off-site. their own processes and current
technologies. With the adoption of
Deploying these technologies can
new and innovative assessment
drastically reduce the resources
and inspection technology, a new
and site-based time required
baseline for data collection across
for new data capture, as these
multiple industrial markets is
samples can be gathered and
emerging.
immediately sent via secure data
transfer or brought back to the With current photogrammetry
site and/or home office sites for technology deployed by Turner
processing and analysis. & Townsend, we can provide
companies with accurate field
These technologies will also be
quantities in a fraction of the
able to help us with historical
time of traditional methods while
projects where there is existing
limiting our site-based time
data. In other words, we can
exposure and reducing cost.
still use data to quantify projects
from previous photogrammetry As we progress into the future,
going forward. we continue to discover new
efficiencies and methods for doing
For the Future our work. Adopting these solutions
also allows us to put more
With the adoption of any new
effective plans in place at the
technology, there is often an
earliest stages of a project. Some
intimidating learning curve. Cost
of these technological adoptions
is also a factor, both to acquire
may have come about on a wider
the technology itself and to train
scale because of a response to
staff to work with it. But once we
Covid-19, but even so, this shift is
weigh the advantages of reduced
revolutionizing workflows that will
risk and improved quality of
save cost and improve efficiency
information and add the reduced
in the long run.
HSE implications for our on-site
teams, adapting to working with
these new tools makes a lot of
sense.
Embracing the future
 A new era for
long-term care
Design and cost implications for long-term
care in response to Covid-19 in Ontario

Contributor | John Goldrick, Director

The Covid-19 pandemic has
drastically affected numerous
sectors worldwide. Long-term
Care (LTC) has been significantly
impacted however there are now
new measures in place to respond
to the issues LTC operators are
currently dealing with. Turner &
Townsend’s extensive experience
in LTC and deep understanding
of the issues facing LTC providers
leaves us uniquely positioned
to advise our clients on the
construction cost and project
execution implications as they
respond to the issues that have
arisen from Covid-19.
Challenges in LTC
Prior to the pandemic, LTC was
already facing a significant
challenge in Canada, but
perhaps more acutely in Ontario:
accommodating the increasing
senior population. According to
the Ontario Ministry of Health1,
there are currently over 37,000
individuals on the LTC waitlist.
This statistic is compounded by
the fact that the waitlist continues
to grow. Between 2011 and 2018,
the number of Ontarians aged 75
increased by 20 percent yet the
number of LTC beds only went
up by 0.8 percent, according to a
recent analysis from the province’s
Financial Accountability Office
(FAO).2
To address this challenge,
the provincial government
introduced the Long-Term Care
Home Redevelopment Program,
which set a directive to build/
upgrade over 15,000 LTC beds to
accommodate the rapidly growing
number of Ontario residents over
the age of 75.
However, rising construction costs
for LTC facilities (which have
generally risen in line with those
for residential development3)
have hindered progress for the
rollout of the program. The
Long-Term Care Construction
Funding Subsidy provided for LTC
redevelopment had not reflected
these cost increases — an issue
that Turner & Townsend together
with operators and member
associations have worked to bring
to light. Moreover, these cost
increases have placed a lot of
pressure on the viability of LTC
redevelopment.
The Impact of Covid-19 on LTC
in Ontario
Covid-19 has had a devastating
impact on both residents and
staff within LTC facilities. Since
the beginning of the outbreak,
hospitals have no longer been able
to accommodate overflow patients
awaiting LTC, leading to even
more overcrowding. In addition,
the need for a comprehensive
overhaul of LTC infrastructure and
the funding subsidies available
for this has become even more
essential.

1. http://www.health.gov.on.ca/en/pro/programs/ltc/notice_20200710.aspx
2. https://www.fao-on.org/en/Blog/Publications/ontario-long-term-care-program
3. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810013502

16
A new era for long-term care
In response to this situation, on
April 15th, 2020 the provincial
government released the
Covid-19 Action Plan4: LTC homes,
which references $243 million
designated specifically for LTC.
In July, 2020 the Ontario
government also announced a
Modernized Funding Model5 that
would supplement the creation
and retrofitting of beds, as well
as a capital development grant
and an increase to the existing
Construction Funding Subsidy
that is specific to each geographic
location.
The new funding model will help
speed up construction by:
„ Creating four new regional
categories based on geographic
location, each with a targeted
home size: large urban, urban,
mid-size, and rural.
„ Providing development grants,
between 10 percent and 17
percent depending on the
regional category, to cover
upfront costs like development
charges, land and other
construction expenses.
„ Helping small operators in rural
communities navigate the high
cost of development, while
ensuring larger urban centres
can secure the loans and real
estate they need.
„ Increasing funding to incentivize
the construction of basic
accommodation and continuing
top-ups for small and medium-
sized homes.
4. https://www.ontario.ca/page/Covid-19-action-plan-long-term-care-homes
5. http://www.health.gov.on.ca/en/pro/programs/ltc/memo_20200717-2.aspx
6. https://news.ontario.ca/en/release/57690/ontario-unveils-new-innovative-approach-to-building-long-term-care-homes-faster
7. https://news.ontario.ca/en/release/57780/ontario-fast-tracks-long-term-care-home-for-ajax
8. https://news.ontario.ca/en/release/57958/ontario-fast-tracks-long-term-care-home-in-toronto
9. https://news.ontario.ca/en/backgrounder/59290/ontario-providing-new-and-upgraded-long-term-care-spaces
17
Redesigning LTC in
response to Covid-19
Covid-19 has necessitated LTC
operators to review the design
and operations of their facilities.
This includes developments that
are currently under construction
as well as projects that are at the
design stage.
Turner & Townsend is currently
providing real-time cost and
commercial advice to our clients
who are adapting to these new
design implications. The cost
premium for incorporating these
design changes is in the range
of $20 to $25 sq.ft. This is in
addition to our current benchmark
construction cost data for LTC of
$280 to $325 sq.ft.
Some of the design changes
currently being considered include
enhancements to HVAC systems,
solid surface countertops,
thermoplastic handrail installation,
flooring retrofits, and easy to
clean finishes improving infection
control.
In addition, other changes such
as increases to the sq.ft. per
resident within common areas
to allow for social distancing,
provision of additional private
beds, increased storage capacity
for PPE, and enhanced electrical
provision to enable more frequent
use of personal devices are now
being proposed for projects still at
design stage.
A Brighter Future
On July 21st, 2020 the Ontario
government launched the
Accelerated Build Pilot Program6
for the construction of 640 new
long-term beds in Mississauga. A
subsequent announcement was
made on July 28th detailing the
construction of a 320-bed facility
in Ajax7. Then, on August 11th,
the government unveiled plans for
an additional 320-bed facility to
be built at Humber River Hospital’s
Finch site8. Turner & Townsend is
engaged to provide cost consulting
services to Infrastructure Ontario
for the Accelerated Build Pilot
Program.
In addition, the Modernized
Funding Model introduced by
the government has taken a
positive step towards addressing
the viability issues in the
redevelopment of LTC.
On November 20th, 2020 the
Ontario government allocated
2983 LTC beds to be built across
the province9, incorporating 1968
new beds and 1015 retrofit beds.
The approval of these new
projects demonstrates that
the renewed focus on tackling
the challenges faced in LTC is
beginning to gain momentum.
Turner & Townsend
is currently involved
in providing cost and
commercial advice to many
of the operators working to
improve the overall quality
of LTC in Ontario.
A new era for long-term care
Kai Fraser
Director
kai.fraser@turntown.com
Vancouver
+1 (604) 565 1060

Brandon Billsten
Director
brandon.billsten@turntown.com
Edmonton
+1 (780) 643 0134

Gonzalo Rosa
Director
gonzalo.rosa@turntown.com
Calgary
+1 (587) 332 0204

Gerard McCabe
Managing Director
gerard.mccabe@turntown.com
Toronto
+1 (416) 925 1424

Douglas McNeill
Director
douglas.mcneill@turntown.com
Ottawa
+1 (613) 221 9560

@turnertownsend

www.turnerandtownsend.com

© Turner & Townsend. This content is for general

information purposes only and does not purport
to constitute professional advice. We do not make
any representation or give any warranty, express
or implied, and shall not be liable for any losses
or damages whatsoever, arising from reliance on
information contained in this document.
In this report, the unit costs per ft2 are indicative,
and should not be relied on without first obtaining
advice from a qualified professional person. Costs
are dependent on building design, inclusions,
exclusions, and site conditions. Costs may vary
substantially between regions within countries.
Turner & Townsend and its subsidiaries, the authors
and contributors expressly disclaim all and any
liability and responsibility to any person in respect
of anything done or omitted to be done in reliance
wholly or in part upon the whole of the contents of
this publication.