Contractors and suppliers say the third-party verification “ISN does not currently perform field audits in Ontario,” services have dramatically increased their overhead costs, she said. “We see this RAVS process as complementary in some cases requiring enough labour and time to add to the IHSA COR program.” $10,000 a year in expenses per client. This is a significant Other contractors suggest that the third-party services cost for larger businesses/clients, but can be truly extreme are playing both ends against the middle – using their for smaller businesses and contractors seeking smaller arrangements with owner clients as a leverage tool to sell contracts with organizations using the verification services. services to the suppliers and trades hoping to do business For example, Marc Ally, vice-president of Almon Equip- with the client. ment Ltd, which specializes in road maintenance and traf- “I have been approached (from ISNetworld) from the fic control signage, says: “If I divide the costs by the Region of York, in Toronto,” said the owner of a GTA-based number of clients who use this service, it can be upwards millwright services business. “They state it is a require- of 10 percent of the annual contract values.” ment to do any work with the region. They called my num- He says he is careful to track his compliance costs, be- ber multiple times requesting me to fill out their application cause ultimately these must be factored into his bidding and saying a fee would have to be paid, never disclosing prices. what it may be.” Sometimes Ally says he is puzzled by the documenta- “My impression was that it was an unjustified money tion requests, for example, for training and safety practices grab,” he wrote. “I felt it was not legitimate and that the that have no application for his business, but are mandated region should have a Canadian firm responsible.” through the standard processes set by the third-party serv- Another contractor, describing a verification service not ices and their owner-clients. The Ontario Power Authority, associated with ISN, said he paid the service fee because for example, requires “safety gear he had learned from his lawyer that an- and knowledge of electrical sys- other one of the lawyer's clients “had “What they do, and how tems” when his staff will only visit leased space in a building in Toronto” sites briefly to drop off traffic con- with the requirement that only organiza- they work, is that they go to the trol equipment. “We have a re- tions registered with the third-party serv- client base, and sell the client quirement for respirator training,” ice could do the work. a bill of goods. That bill of goods he said – and his organization The contractor examined the project, is we will make sure everybody needed to train and fit two employ- and observed that the only qualified bids ees with respirators, for example. the owner had received were well above who works for you is safe, and This is for a different client. “The what he would charge for a similar job. we will ensure that.” main point being that to continue He paid the fee, and won the work. to do work for a client I had to get “It was the most bizarre set of circum- respirator training and fits even though the certifications stances,” the contractor said. The third party organization will likely expire before my employees use the training or told him that “we have to train you in driving certification,” devices a single time.” he said. “If you park in this business you must be trained However, Ally says he appreciates that there is a need by us” for an additional fee. for the verification process. “It just needs to be refined a He declined. little to be administered a little easier,” he said. “What The contractor indicated that he soon found that the op- needs to happen is things should be set up with different portunity for profitable work turned into a one-time limits.” Smaller contracts with lesser requirements would chance; and did not receive any additional business need to file and maintain the appropriate documentation through the third-party service. level. Meanwhile, Gayle Suderman, director, human re- Paul Casey, vice-president of programs and strategic de- sources and safety at the Chant Group, an Aurora, Ontario- velopment for the Infrastructure Health and Safety Asso- based program, project and construction management ciation (IHSA) says hundreds of contractors have gone company, said her business had excellent relationships through the rigorous process to complete the Certificate with one of its clients, with multiple contracts and a solid of Recognition (CoR) process, backed up by field audits. health and safety record, before the client organization He said he doesn't wish to speak against the third-party signed on with ISN. verification services, but wondered if owners have a false “Since signing on with ISN we have yet to have one,” sense of security in the document verification process be- she said, adding “we feel a separation from the rapport we cause they aren't backed up by actual audits. The third once enjoyed with our client, similarly, the client may also party services add financial and administrative costs for have an unclear perspective on the pool of service contractors who are already making sure they comply to providers they have to choose from.” the highest health and safety standards, he said. “It's hard to know, because ISN is a barrier between us ISN's Kim Ritchie says her organization's “Review and and our client” Suderman wrote in her letter (published in Verification Service” (RAVS) includes a team of health and full at ontarioconstructionreport.com). “I'm not sure that safety personnel that review and verify contractors' written the client even knows who we are. We are lost in the dig- health and safety programs to ensure the programs meet ital 'to-do's' of ISN. In the end, we are forced to develop regulatory and hiring client requirements. safety policies and work plans we will never use in the type The Canadian Design and Construction Report — Fall 2014 – 5