UPA Canada

Rising to the occasion┬áUPA Canada is rising to todayÔÇÖs economic challenges by taking a flexible approach, Ruari McCallion learns from Keith Anderson. Who would be a construction company in todayÔÇÖs marketplace? Housing sales have virtually stopped, developers have got cold feet and stopped developingÔÇöthe level of activity has fallen off a cliff, compared with just a couple of years ago. But the general gloom hasnÔÇÖt brought UPA Canada down.ÔÇ£WeÔÇÖre fortunate to have a number of projects on the go,ÔÇØ says Keith Anderson, senior vice president and general manager of UPA Canada. ÔÇ£We have recently finished two wood-framed developments and are currently working on another three residential projects, which will be completed toward the end of this year or into early 2010.ÔÇØ The three current projects are: the Madison, a 15-story luxury condominium building being constructed in the Lower Okanagan Valley, in Kelowna, British Columbia, about four hours east of Vancouver; the Invue, also in Kelowna, a 57-unit condo project that will include an office space component; and the Paloma, with 154 units, in Richmond, BC. ÔÇ£The Okanagan Valley has become a destination resort and retirement community, attracting people with its mild climate and relatively lower rainfall. The top units here sold for well over $2 million. The Paloma is located near the Vancouver Airport. ItÔÇÖs strategically located adjacent to a new station along the Vancouver Sky TrainÔÇÖs Canada Line.ÔÇØDevelopers are extremely cautious about starting new projects; the market for pre-sales, on which developments depend, has dried up for the moment. But UPA Canada isnÔÇÖt simply resting on its laurels or drumming its fingers while it waits for things to get better.ÔÇ£There is quite a bit of supply in BC generally and Vancouver in particular,ÔÇØ says Anderson. ÔÇ£Developers are continuing with their planning and due diligence activities, ready for the upturn. In terms of new work, we recently won a contract for a new commercial scheme. There does seem to be a demand for commercial spaceÔÇöfor two- or three-story office buildings, technical and large warehouse spaces, and some retail.ÔÇØ New high-rise buildings tend to be mixed-use, with retail and commercial at the lower levels and residential above, and there is an ongoing demand for high-rises in Vancouver.ÔÇ£ThereÔÇÖs demand for towers because there isnÔÇÖt the land available to accommodate a lot of low-rises,ÔÇØ Anderson says. Prospective residents are particular about what they want, as well. ÔÇ£A lot more purchasers want to live in concrete, rather than wood-framed buildings.┬áThey may cost more to get into, but they donÔÇÖt have the problems of, for example, water ingress. Vancouver has 50 to 60 inches of rain a year; near the US border, itÔÇÖs about 25 inches, but rainfall levels reach around 200 inches towards the mountains. In the past, wood-framed buildings suffered from water penetration, so concrete is the preferred option.ÔÇØDespite the downturn in the economy, there continues to be a demand in downtown Vancouver for high-rises. Single-family housing is expensive, where buildable land is in short supply. There is also the challenge of the geology of the Vancouver region: the mountains may be rocky, but the coastal areas are more complex, which is where the experience and expertise UPA can bring to bear comes in.ÔÇ£Building in BC has become very technical,ÔÇØ Anderson explains. ÔÇ£The sand, soil and geological issues are very significant. In sandy areas, you have to pile, for example.ÔÇØ The issues arenÔÇÖt always fully understood by some. ÔÇ£Quite often, we find that developers get into problems because they donÔÇÖt appreciate the challenges and potential problems. They go to tender late, after regulatory approvals are already in place.ÔÇØ UPA was founded only in 2005, but it has brought together people who are steeped in the property industry of Western Canada. ÔÇ£I have around 40 yearsÔÇÖ experience in development work,ÔÇØ Anderson says. ÔÇ£Our operations manager has been around for 25 or 30 years, and our field ops guy has been in the business for 35 years. WeÔÇÖve built a solid team of senior professional people and good younger members.ÔÇØ Altogether, UPA CanadaÔÇÖs Vancouver office has in the region of 40 salaried people, with a similar number and structure in Calgary. ÔÇ£Our main offer is our solid knowledge base, which we are able to sell with our design engineering expertise, especially to developers who arenÔÇÖt all that familiar with construction challenges in this area, as well as established organizations.ÔÇØ The longer-established players have known the people involved with the company for many years. UPA provides a full range of project development and construction services in multi-unit residential, resort and commercial developments, right from initial design concept through pre-construction, value engineering and post-construction. ÔÇ£Our strength is our construction knowledge and our ability to look at programs at an early stage and ensure the developer gets best value,ÔÇØ says Anderson. ÔÇ£We prefer to get involved in pre-construction 18 months ahead and become part of the development team. We can then watch the designs, value engineer and ensure the designs are practical but without compromising the architectÔÇÖs vision.ÔÇØ AndersonÔÇÖs experienceÔÇöand that of his teamÔÇömeans that relations with suppliers and trades are pretty good also. ThatÔÇÖs important whether the industry is booming or in quieter times. ÔÇ£Market conditions affect all general contractors, and weÔÇÖre no different,ÔÇØ he continues. ÔÇ£When the marketÔÇÖs hot, itÔÇÖs difficult to get good trade workers, productivity goes down, and costs go up. When thereÔÇÖs less activity, itÔÇÖs easier to get quality people, and productivity goes up.ÔÇØ A company that is known in the industry as stable is more attractive to good-quality people. The company is also focused on ensuring it is bringing the next leadership generation forward. ÔÇ£Generally speaking, we bring in qualified people, who have a construction management education from university or technical college. We look for professional engineers who have maybe been in consultancy businesses and now want to make their career in construction. All our office support and management staff are well qualified.ÔÇØ ItÔÇÖs all part of the UPA difference. ÔÇ£What sets us apart are our people and our experience.ÔÇØ ÔÇô Editorial research by Jim Rose┬á