CCA UPDATE REPORT …

                                   CCA UPDATE REPORT
                                                   (March 2007)

The following is an update report on new and on-going CCA initiatives including highlights from
the Council, Committee and Board meetings convened during the 89th Annual CCA Conference
held March 5-9, 2007 in Puerto Rico.

CCA Establishes 2007-08 Federal Government Lobby Priorities

With input from its Member Associations at a special forum convened during the recent Annual
Conference, CCA established its federal government lobbying objectives for 2007-08 as follows:

Human Resource issues:
   ·   Promote and encourage federal and provincial governments to live up to their promise of unfettered labour
       mobility throughout Canada by April 2009.
   ·   Continue to promote national apprenticeship standards throughout Canada.
   ·   Continue to pursue reforms to the immigration system that will facilitate the entry of construction workers to
       Canada including working with provincial Member Associations to expand Provincial Nominee Programs.
   ·   Seek broader application of the federal Apprenticeship Job Creation Tax Credit and Apprenticeship Incentive
       Grant beyond simply Red Seal trades to provincially-recognized apprenticeable trades.
   ·   Lobby for EI and/or tax incentives and assistance for temporary relocation of construction workers.
   ·   Continue to oppose efforts to introduce amendments to the Canada Labour Code that would prevent or
       severely restrict the use of replacement workers during a lockout or strike.

Environmental Issues:
    ·   Work with PWGSC and Environment Canada to develop strategies to increase waste diversion and increase
        recycling capacity within the industry.
    ·   Work in partnership with the Canadian Trucking Alliance to obtain an accelerated capital cost allowance rate
        for new lower emitting diesel-powered engines.

Long-term financing of infrastructure:
    ·   Following the release of the 2007 Budget, monitor the implementation of the 2006 and 2007 allocations for
        infrastructure, and push for increased infrastructure investment during a possible election campaign leading
        up to the 2008 Budget.
    ·   Comment on and monitor the "infrastructure fiscal imbalance" proposals.
    ·   Press the federal government to make open, transparent procurement by provincial/municipal contracting
        authorities a pre-condition to federal infrastructure funding.
    ·   Press for federal infrastructure investment objectives in municipal infrastructure, national highways and
        strategic infrastructure to stress the key principles of sustainability, transparency and accountability. With
        regard to the "fuel tax allocation", seek some form of on-going dedication/designation.
    ·   Continue to build alliances with such groups as the Federation of Canadian Municipalities (FCM).
    ·   Work with the federal government and industry to better prepare the industry to participate in public-private
        partnership projects. Develop and promote industry recommended "best practices" regarding the use of P3s
        and other forms of alternate delivery to ensure transparency and accessibility in the procurement process.

Tax issues:
    ·    Continue to press for reforms to the tax treatment of employer-provided vehicles.
    ·    Seek reforms and/or greater clarity with respect to the recognition of income for provincial
         corporate/business income tax purposes.
    ·    Seek reforms to the Employment Insurance (EI) rate setting process that will ensure that premiums are set on
         a truly break-even basis, equalize employer-employee contributions, and provide refunds to employers for
         over-contributions, among others.
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Innovation:
    ·    Work with the federal research granting councils to encourage more funding for applied research in
         construction and construction-related projects and programs, including the possibility of creating a research
         Chair in construction management and/or technology.

Federal Procurement:
    ·    Finalize and execute the MOU with PWGSC recognizing the critical importance of plansrooms operated by
         Member Associations to federal construction procurement and formalizing their unfettered access and use of
         PWGSC construction tender documents including both plans and specifications.

Gold Seal:
    ·   Where possible, promote Gold Seal as the industry's preferred standard for construction management
        excellence.

CCA Close to Finalizing MOU with PWGSC on Plansroom Access

CCA is very close to finalizing and executing a Memorandum of Understanding (MOU) with Public
Works and Government Services Canada (PWGSC) that would guarantee unfettered access of
plansrooms operated by CCA Member Associations to federal government construction
opportunity information including plans and specifications. This would include the provision of
complimentary hardcopy and electronic tender documents.

CCA Endorses New Electronic Procurement Guide

The CCA Board of Directors approved for publication a new CCA Guide on electronic
procurement. The Guide is intended to provide advice and recommended best practices to bid-
calling authorities who utilize electronic media for procuring their construction services.

CCA Joins Canada Green Building Council

On January 2nd of this year, CCA became the very first association to become a member of the
Canada Green Building Council (CaGBC) under the Council's new associate member category.
The CCA Board ratified a Memorandum of Understanding (MOU) between CCA and the CaGBC
to formalize its relationship with the Council. This MOU will go into effect upon ratification by the
CaGBC Board. It commits both organizations to work together in the areas of education,
advocacy and lobbying, as well as the promotion of mutual events, and potentially accrediting
LEED courses under the Gold Seal Certification Program. In addition, CCA has negotiated a
partnership agreement with the CaGBC covering such matters as the costs and responsibilities
associated with the joint delivery of "LEED for Contractors" courses by CCA Member
Associations and the CaGBC.

CCA to Develop Construction Accounting Best Practices Guide

The CCA Finance Committee is developing a new CCA Construction Accounting Best Practices
Guide that would address such topics as:

     1.   The importance of reliable financial statements - difference between audited vs. unaudited;
     2.   How construction industry invoicing and payment practices make straight accrual accounting
          impractical, i.e. percentage completion vs. completed contract method, and the need for clarity as
          to what the percentage completion calculation is based upon ­ i.e. costs, labour hours, etc.;
     3.   Impact of both types of reporting on work-in-progress and progress billings;
     4.   Under and Over billings and their treatment, i.e. separate line item or accrued liability or inventory;
     5.   Work-on-hand schedules ­ including this as a schedule to the accompanying notes;
     6.   Deferred taxes and the changing rules around their treatment on the Balance Sheet;
     7.   Disclosures around the pledging of cash or marketable securities to secure operating lines; and
     8.   Accounting for GST/HST and value-added taxes in general ­ the special timing rules associated
          with progress payments subject to certification and holdbacks
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Feds Reviewing Bid Depository Use

Public Works and Government Services Canada (PWGSC) recently advised CCA that the
Federal Government is reviewing its continued use of the bid depository system raising a number
of questions and concerns. Since bid depository rules and procedures vary significantly from one
province to the next, and given that there is a tradition of dealing with federal use of bid
depository on a provincial/regional basis, the CCA Standard Practices Committee has decided to
take the following steps:

    ·   Seek responses to the federal concerns and questions from the various
        provincial/regional bid depository administrative bodies and CCA Member Associations
        and forward these to the Federal Government for its review and consideration;
    ·   Take a pro-active role in assisting local bid depositories to address the federal
        government's concerns, including facilitating communications or meetings between
        regional bid depositories and the federal government; and
    ·   Seek an update from the federal government on this review at the Joint CCA-
        Government of Canada meeting in April.

Board Accepts Membership Application from Edmonton Construction Association

The CCA Board of Directors having felt it had given both the Alberta Construction Association
(ACA) and the Edmonton Construction Association (ECA) ample time to resolve their difference
and given that a current impasse had been reached, decided to no longer postpone its decision
on the direct application for membership from the ECA necessitated by its withdrawal from the
ACA, by granting ECA's request.

CCA Strategic Plan Implementation Task Forces

The CCA Executive Committee established a number of Task Forces to come up with
recommendations as to how to effectively achieve the various strategic objectives in the CCA's
new 5-year Strategic Plan (2006-2010) adopted by the CCA Board last year. These
recommendations are expected to be submitted to the Board at its next meeting in June 2007.

CCA Supports Expansion of Owner Representation on the CCDC

The CCA Board of Directors endorsed a proposal to expand owner participation on the Canadian
Construction Documents Committee (CCDC).

New Pre-Purchasing Guides being Finalized

The CCA Standard Practices Committee is in the process of finalizing two new CCA guides on
the issues of owner pre-purchasing of material and equipment and owner pre-purchasing of trade
services. Both are expected to go before the June meeting of the CCA Board of Directors for
endorsement.

Joint Venture & Subcontract Bidding Guides Ready for June

The CCA Standard Practices Committee is close to finalizing a new CCA Joint Venture Guide
and a new Subcontract Bidding Guide. First drafts of these documents for consultation purposes
are expected soon with the intent to seek Board endorsement in June.

CCA Participating in Front-Line Supervisor Project

CCA is participating with the Construction Sector Council in developing a national occupational
analysis for front-line supervisors. The project results will form a major component of the training
and certification solutions for skill shortages in this critical area.
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Gold Seal Committee Develops Guide for Owners

The CCA National Gold Seal Committee is developing a Best Practices Guide for owners who
wish to use Gold Seal certification as a condition of contract on their construction projects. The
intent is to ensure that contractors can respond to such measures in an effective manner.

Guide to Doing Business in the United States Being Updated

The CCA International Business Committee is in the process of updating its 2003 publication
entitled Guide to Doing Business in the United States. The current Guide deals almost exclusively
with immigration issues and the cross-border mobility of people.

Past CCA Chair Barry Brown First Canadian President of CICA

2002 CCA Board Chair Barry Brown was elected the very first Canadian President of the
Confederation of International Contractors' Associations (CICA) last November in Dubai.

2006 Audited Statements Approved

The CCA Audited Financial Statements for the period ending December 31, 2006 were approved
at the CCA Annual General Meeting on March 9.

Appointments to Outside Agencies/Committees

Mr. Bernard St-Louis of Pomerleau Inc. was appointed a CCA representative to the Canadian
Construction Documents Committee (CCDC) replacing Jim Wilson who has served with
distinction for the past 5 years.

CCA Director of Government Relations & Public Affairs, Jeff Morrison, who also serves as the
Permanent Secretary to the CCA's Environment Committee, was appointed CCA's representative
to the Environment Committee of the Transportation Association of Canada (TAC).

CCA Welcomes New Members

The CCA Board of Directors approved the applications for CCA Corporate Membership from:
    · Essor Insurance, Investment & Counseling Inc. in Montréal (QC);
    · McCaine Electric in Winnipeg, MB;
    · ORBI Construction Group Inc. in Laval (QC); and
    · Reed Construction Data in Toronto, ON

The Board also approved the Ontario Hot Mix Producers Association as a new Affiliate
Member Association.

Thank-You to Retiring CCA Board Members

The March 8th, 2007 meeting of the CCA Board of Directors was the last of the 2006-07 edition of
the CCA Board of Directors and the last for the following retiring CCA Board members:
        Jim Brown        2003                     Bill McLean      1995
        Bob Cameron      2004 & 1985-87           Cal Moon         2003
        Murray Farmer    1992                     Kelly Parker     2002
        Lloyd Ferguson   1997                     Tim Stanley      2005