July 9, 2009

Independent Contractors and Businesses Association

Green economy offers many opportunities in British Columbia

Industrial, commercial and institutional (ICI) construction in British Columbia is taking on a new dimension as the green economy pushes forward with interesting new business opportunities for open shop contractors.

With the economic slowdown, good news of any kind is welcome, but building economic prosperity through activities that lessen the impact on the environment offers more than just a short-term answer about where future construction work will be.

All construction in B.C. is turning some shade of green, as governments and consumers push for more climate-friendly buildings and processes, but green is also opening up new markets for B.C. contractors.

The first major push comes from the expansion of BC’s independent power production (IPP) capabilities.

The B.C. government has made it clear that independent power production figures prominently in the province’s energy supply and climate change plans.

This sector will continue to drive new construction activity and put more open shop contractors to work.

About 1,000 construction workers are currently building 15 new projects at locations around B.C., with upwards of $5 billion in construction investment coming in the next few years from companies that hold Energy Purchase Agreements with BC Hydro.

But IPPs are not the only new business being driven by the green economy.

Other ICI construction in Western Canada is also taking on a green tinge, as projects which maximize environmental efficiency are first in line for funding and investment.

The new B.C. Building Code sets out higher standards for environmental efficiency and LEED certification is becoming the norm, as developers strive to stamp an environmentally friendly face on their work.

This means more opportunity for open shop contractors who stay on top of new products and new techniques.

As our clients try to reduce their carbon footprint (and take advantage of tax savings by doing so), the solutions they need will come in large part from the work done by contractors.

For example, reduced energy consumption can be gained by installing more efficient lighting or heating, using materials with less environmental impact, or building green features like green roofs or grey-water capture systems. Our work can definitely play into the bigger picture.

Another area where the green economy can benefit contractors is the move to measure carbon reduction and become carbon neutral.

The U.S. Obama administration is pushing this agenda, and the Western Climate Initiative is laying the foundation for an international cap and trade program.

The B.C. government is already on the road to developing a cap and trade system for carbon trading in this province. More than 170 B.C. communities have signed on to the provincial Climate Action Charter, committing to become carbon-neutral by 2012.

The Greenhouse Gas Reduction Targets Act in B.C. requires all public-sector organizations to be carbon-neutral by 2010.

This includes all provincial public operations, including government operations, school districts, health authorities, post-secondary institutions and Crown agencies.

The Independent Contractors and Businesses Association (ICBA) is taking a leading role in ensuring that environmental benefits from construction are part of the government’s discussions on measuring carbon savings. Open shop contractors have always worked most efficiently to minimize costs.

Now that same efficient approach is positioning us as an industry poised to show how construction can create environmental advantages for the carbon trading market.

For our industry, being green is more than just good business sense and doesn’t require re-tooling or re-training to any large degree.

We can help our clients achieve a more sustainable product and help our own bottom line by staying on top of trends and techniques as well as being part of the environmental solution. B.C. is growing a reputation as a leader of this green wave in building.

Construction contractors must continue to build their expertise in this arena, making us international experts in building a greener ICI industry.

Philip Hochstein is president of the ICBA, an organization which represents independent, family owned construction companies in B.C.

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