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Industrial/Commercial Construction

Industry Code: 40400

Compulsory

This classification describes general contracting undertakings of turn-key commercial, institutional and industrial projects and also covers general contracting relating to residential properties exceeding 5 stories in height.

Operation Details:

General contractors have the contract to construct entire plants, buildings or structures. These contractors undertake a contract for all phases of construction from civil or underground work to structural erection, the installation of equipment and piping, the installation of mechanical and electrical systems and finishing work.

General contractors will employ engineers and project management personnel to ensure design integrity, provide on-site supervision, oversee the administration, estimating, costing and scheduling throughout the term of the project. General contractors may direct-hire building trades such as pipe fitters, welders, concrete workers and/or alternatively subcontract out various components of the construction to sub trades in completing the project.

Industrial work in this industry will include, but is not limited to:

- Oil and gas processing facilities including oil sands projects
- Manufacturing and processing plants
- Industrial warehouses
- Sewage and water treatment facilities
- Bridge construction when conducted separately from road construction

Institutional work in this industry will include, but is not limited to:

- Healthcare facilities - active treatment and long term care facilities
- Educational facilities - schools, colleges, university buildings, auditoriums, etc.
- Recreational facilities

Commercial work in this industry will include, but is not limited to:

- Office towers
- Commercial warehouse and distribution centres
- Shopping malls, strip malls
- Service stations
- Restaurants

Residential work in this industry, subject to underwriting considerations outlined below, is limited to:

- Condominium and apartment complexes exceeding five stories.

All employers in this industry are members of the Alberta Construction Safety Association (ACSA). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

General contractors will undertake entire construction projects on a turn key basis and will generally use subcontractors. A trade contractor who engages another contractor to complete a contract or portion of the contract, is not necessarily a general contractor in this industry. A review of the contract, the scope and longevity of activity, and discussion with the principal, should reveal whether general contracting is being conducted on an ongoing basis.

This industry will usually cover general contracting on projects where the structural work is either steel or concrete. However, this industry does include general contracting for wood frame construction where the principal use of the property is commercial in nature. Residential rental properties are not considered commercial properties for the purpose of WCB classification. Please note that current building codes do not allow for wood frame structures to exceed five stories in height.

This industry covers both union and non union projects. It is quite common for larger general contractors to incorporate separate legal entities or divisions for union vs. non union work or to separate industrial and commercial work. These companies may also have separate but related entities for supply of industrial labour services, management or engineering services. Corporate and business relationships need to be reviewed for purposes of classification and use of experience.

Employers in this industry who also engage in residential general contracting are not eligible for separate classifications. The business should be classified based on majority operations.

Employers who are general contractors for major interior renovation work on commercial structures, including demolition or full and complete modifications to the interior layout or floor plan, will be classified here. Modifications to the existing load bearing structural work is not required and would, in most cases, not be conducted. Renovation work, excluding major renovations, conducted as the primary business focus, whether commercial or residential, will be classified in industry 40401.

Employers engaged in industrial and commercial contracting will have significant engineering work related to estimating, project management and site supervision. This engineering work is part of the overall business and is properly classified in this industry.

Firms principally engaged to provide engineering services related to concept design and detail engineering then subsequently enter into project or construction management services as an extension to an engineering contract, will require a construction classification in addition to engineering - Industry 86400. This applies when services consist of more than incidental or periodic site inspections.

It is common for the owners of a construction project to engage the services of individuals or firms to manage the project on behalf of the owner. These services are often referred to as project management or construction management services. This industry includes project management or construction management services conducted as a separate business and includes the administrative, contracting, scheduling, hiring activities, etc., with the overall responsibility for the project. This type of business will often oversee work conducted through a general contractor but may include or require the direct hiring of trade labour or subcontractors by the project or construction manager.

Supervisors, inspectors, and quality control staff contracted to the general contractor are classified in this industry. Supervisors, inspectors, quality control staff contracted by the project owner to simply observe and report on activities with no responsibility for completion of site work are classified in Quality Control (Industry 51506).

Complete shutdown plant maintenance is part of this industry when conducted as a separate business. Shutdown work in conjunction with ongoing plant maintenance work is classified in Industry 42109. General contracting work related to upstream oil and gas production and processing facilities are classified in industry 6304. This would include completion of oil and gas well heads, compressor stations, battery sites, pumping stations, etc.

Employers engaged in steel fabrication in industry 30100 may construct skid packages or modular processing facilities in their shop or yard. They may take on the contract to deliver and assemble modules or packages at a construction site. These employers will generally do this as a separate contract with separate field crews and will require an additional classification in Industry 40400. Conversely, employers principally engaged as industrial contractors that have shop facilities to simply prepare structural steel or pipe for installation by welding on plates, angle iron or pipe elbows, etc. will not require an additional classification for steel fabrication.

Complete building demolition is classified in industry 40604. Bridge construction, when conducted by a company otherwise involved in road construction activities, will have their entire business classified in industry 40604 and will not be eligible for separate classifications.

The activity of placing rebar (reinforcing steel) as a stand alone business is classified in industry 40400.
The placing of reinforcing steel (rebar), when done in conjunction with concrete construction, is classified in industry 42104. The placing of rebar is labour intensive and requires the cutting, laying/placing and tying of the reinforcing steel. Reinforcing steel is used to strengthen concrete once the concrete has been poured over the rebar. Reinforcing steel is used on a variety of concrete jobs such as driveways, sidewalks, walls, buildings, bridges, etc.

NOTE: Before reclassifying an account from a trade contracting classification into this general contracting classification, please contact the Classification Unit.

Premium Rate History:

Activities:

Bridge construction
Buildings, Constr. of Commercial, Industrial, Etc
Commercial Buildings - Construction of
Commercial Diving Services
Commercial Renovation Services
Condominiums, Construction of 6 or More Storeys
Construction Management Services
Construction, General, Commercial
Construction, General, Industrial
Construction, General, Institutional
Diving Services, Commercial
Field Post Tensioning
Gas Plant, Shutdown
General Construction - Commercial Buildings
General Construction - Industrial Buildings
General Construction - Institutional Buildings
Grain Elevators, Construction of
Greenhouses, Metal Framed - Mfg or Erection
Industrial Buildings, Construction of
Institutional Buildings, Construction of
Wire Rope Support Systems, Installation of
Townhomes, Construction of Concrete, Steel
Pipefitting, Industrial
Post Tensioning, Field
Project Management - construction
Reinforcing Steel (rebar) - placing of
Renovation Services, Commercial
Rope, Wire Support Systems - Installation of

Rate Group History:

As a result of project work conducted in 2002, this industry has been redefined to draw a clearer distinction between commercial, industrial and residential general contractors.

This classification describes general contracting undertakings of turn-key commercial, institutional and industrial projects and also covers general contracting relating to residential properties exceeding 5 stories in height.

Premium Rate History:

Activities:

Bridge construction
Buildings, Constr. of Commercial, Industrial, Etc
Commercial Buildings - Construction of
Commercial Diving Services
Commercial Renovation Services
Condominiums, Construction of 6 or More Storeys
Construction Management Services
Construction, General, Commercial
Construction, General, Industrial
Construction, General, Institutional
Diving Services, Commercial
Field Post Tensioning
Gas Plant, Shutdown
General Construction - Commercial Buildings
General Construction - Industrial Buildings
General Construction - Institutional Buildings
Grain Elevators, Construction of
Greenhouses, Metal Framed - Mfg or Erection
Industrial Buildings, Construction of
Institutional Buildings, Construction of
Wire Rope Support Systems, Installation of
Townhomes, Construction of Concrete, Steel
Pipefitting, Industrial
Post Tensioning, Field
Project Management - construction
Reinforcing Steel (rebar) - placing of
Renovation Services, Commercial
Rope, Wire Support Systems - Installation of

Operation Details:

General contractors have the contract to construct entire plants, buildings or structures. These contractors undertake a contract for all phases of construction from civil or underground work to structural erection, the installation of equipment and piping, the installation of mechanical and electrical systems and finishing work.

General contractors will employ engineers and project management personnel to ensure design integrity, provide on-site supervision, oversee the administration, estimating, costing and scheduling throughout the term of the project. General contractors may direct-hire building trades such as pipe fitters, welders, concrete workers and/or alternatively subcontract out various components of the construction to sub trades in completing the project.

Industrial work in this industry will include, but is not limited to:

- Oil and gas processing facilities including oil sands projects
- Manufacturing and processing plants
- Industrial warehouses
- Sewage and water treatment facilities
- Bridge construction when conducted separately from road construction

Institutional work in this industry will include, but is not limited to:

- Healthcare facilities - active treatment and long term care facilities
- Educational facilities - schools, colleges, university buildings, auditoriums, etc.
- Recreational facilities

Commercial work in this industry will include, but is not limited to:

- Office towers
- Commercial warehouse and distribution centres
- Shopping malls, strip malls
- Service stations
- Restaurants

Residential work in this industry, subject to underwriting considerations outlined below, is limited to:

- Condominium and apartment complexes exceeding five stories.

All employers in this industry are members of the Alberta Construction Safety Association (ACSA). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

General contractors will undertake entire construction projects on a turn key basis and will generally use subcontractors. A trade contractor who engages another contractor to complete a contract or portion of the contract, is not necessarily a general contractor in this industry. A review of the contract, the scope and longevity of activity, and discussion with the principal, should reveal whether general contracting is being conducted on an ongoing basis.

This industry will usually cover general contracting on projects where the structural work is either steel or concrete. However, this industry does include general contracting for wood frame construction where the principal use of the property is commercial in nature. Residential rental properties are not considered commercial properties for the purpose of WCB classification. Please note that current building codes do not allow for wood frame structures to exceed five stories in height.

This industry covers both union and non union projects. It is quite common for larger general contractors to incorporate separate legal entities or divisions for union vs. non union work or to separate industrial and commercial work. These companies may also have separate but related entities for supply of industrial labour services, management or engineering services. Corporate and business relationships need to be reviewed for purposes of classification and use of experience.

Employers in this industry who also engage in residential general contracting are not eligible for separate classifications. The business should be classified based on majority operations.

Employers who are general contractors for major interior renovation work on commercial structures, including demolition or full and complete modifications to the interior layout or floor plan, will be classified here. Modifications to the existing load bearing structural work is not required and would, in most cases, not be conducted. Renovation work, excluding major renovations, conducted as the primary business focus, whether commercial or residential, will be classified in industry 40401.

Employers engaged in industrial and commercial contracting will have significant engineering work related to estimating, project management and site supervision. This engineering work is part of the overall business and is properly classified in this industry.

Firms principally engaged to provide engineering services related to concept design and detail engineering then subsequently enter into project or construction management services as an extension to an engineering contract, will require a construction classification in addition to engineering - Industry 86400. This applies when services consist of more than incidental or periodic site inspections.

It is common for the owners of a construction project to engage the services of individuals or firms to manage the project on behalf of the owner. These services are often referred to as project management or construction management services. This industry includes project management or construction management services conducted as a separate business and includes the administrative, contracting, scheduling, hiring activities, etc., with the overall responsibility for the project. This type of business will often oversee work conducted through a general contractor but may include or require the direct hiring of trade labour or subcontractors by the project or construction manager.

Supervisors, inspectors, and quality control staff contracted to the general contractor are classified in this industry. Supervisors, inspectors, quality control staff contracted by the project owner to simply observe and report on activities with no responsibility for completion of site work are classified in Quality Control (Industry 51506).

Complete shutdown plant maintenance is part of this industry when conducted as a separate business. Shutdown work in conjunction with ongoing plant maintenance work is classified in Industry 42109. General contracting work related to upstream oil and gas production and processing facilities are classified in industry 6304. This would include completion of oil and gas well heads, compressor stations, battery sites, pumping stations, etc.

Employers engaged in steel fabrication in industry 30100 may construct skid packages or modular processing facilities in their shop or yard. They may take on the contract to deliver and assemble modules or packages at a construction site. These employers will generally do this as a separate contract with separate field crews and will require an additional classification in Industry 40400. Conversely, employers principally engaged as industrial contractors that have shop facilities to simply prepare structural steel or pipe for installation by welding on plates, angle iron or pipe elbows, etc. will not require an additional classification for steel fabrication.

Complete building demolition is classified in industry 40604. Bridge construction, when conducted by a company otherwise involved in road construction activities, will have their entire business classified in industry 40604 and will not be eligible for separate classifications.

The activity of placing rebar (reinforcing steel) as a stand alone business is classified in industry 40400.
The placing of reinforcing steel (rebar), when done in conjunction with concrete construction, is classified in industry 42104. The placing of rebar is labour intensive and requires the cutting, laying/placing and tying of the reinforcing steel. Reinforcing steel is used to strengthen concrete once the concrete has been poured over the rebar. Reinforcing steel is used on a variety of concrete jobs such as driveways, sidewalks, walls, buildings, bridges, etc.

NOTE: Before reclassifying an account from a trade contracting classification into this general contracting classification, please contact the Classification Unit.

Rate Group History:

As a result of project work conducted in 2002, this industry has been redefined to draw a clearer distinction between commercial, industrial and residential general contractors.