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Bird Construction

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FY2020 Annual Report · Bird Construction
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annual 

report 2020

NINETIETH
ANNUAL REPORT

for the year ended
December 31, 2020

CORPORATE OFFICES

5700 Explorer Drive, Suite 400
Mississauga, ON  L4W 0C6  Canada

  4820 Richard Road SW, Suite 600
  Calgary, AB T3E 6L1 Canada

DIRECTORS

OFFICERS

AUDITORS

LEAD BANK

SURETY

J. Richard Bird, Ph.D., MBA ............................................................................. Calgary
Karyn A. Brooks, FCPA, FCA (1)........................................................................ Calgary
Paul A. Charette (Chair) .................................................................................Oakville
D. Greg Doyle, FCPA, FCA.............................................................................. Victoria
Bonnie D. DuPont, AOE., M.Ed., F.ICD.D (2) ........................................................ Calgary
Teri L. McKibbon  .......................................................................................Canmore
Luc J. Messier, P.Eng.............................................................................. Texas, USA
Ron D. Munkley, BSc, Hon (Eng)  .....................................................................Oakville
Paul R. Raboud, P.Eng., MSc, MBA................................................................... Toronto
Arni C. Thorsteinson, CFA  ......................................................................... Winnipeg
(1)

(2)

Audit Committee Chair
Human Resources, Safety and Governance Committee Chair

Teri L. McKibbon ........................................................................... President & CEO
Wayne R. Gingrich, CPA, CMA, ICD.D.................... Chief Financial Officer & Treasurer
Gilles G. Royer, P.Eng. ..........................................................Chief Operating Officer 
Charles J. Caza, BA. Sc. Eng., LL.B......Executive Vice President & Chief Legal Officer
Brian C. Henry ......................................................................... Chief People Officer
Rick Begg...........................................................................Chief Information Officer
Peter Lineen............................................................ Executive Vice President, HSE
J. Paul Bergman, CET ............................... Executive Vice President, Buildings East
Rob Otway, P.Eng., GSC, ICD.D ................... Executive Vice President, Buildings West 
Tannis Proulx, P.Eng. ...................…...Senior Vice President, Industrial Construction 
Adham Kaddoura .................................... Senior Vice President, Civil Infrastructure 
David Keep  ..................................... Senior Vice President, Industrial Maintenance
John Krill, P.Eng., MBA ............................................. President, Commercial Systems
Arthur Krehut.......................................Senior Vice President, Operational Services
Paul Pastirik, CPA, MBA ......................Senior Vice President, Strategic Development

KPMG LLP

Bank of Montreal

Travelers Guarantee Company of Canada

STOCK EXCHANGE LISTING

Toronto Stock Exchange (Symbol “BDT”)

TRANSFER AGENT AND REGISTRAR

Computershare Investor Services

WEBSITE

www.bird.ca 

TABLE OF CONTENTS 

LETTER TO SHAREHOLDERS ....................................................................... i 

BIRD SUSTAINABILITY OVERVIEW 2020 .................................................... 1 

MANAGEMENT’S DISCUSSION & ANALYSIS ............................................ 37 

CONSOLIDATED FINANCIAL STATEMENTS ............................................. 81 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .................. 93 

FIVE YEAR SUMMARY .............................................................................. 138 

Letter to Shareholders 

There is no doubt that 2020 was a historic year for Bird Construction. We began the year with the excitement 
of  celebrating  our  100th  year  of  building  Canada.  This  is  a  testament  to  any  organization  that  is  able  to 
celebrate  100  years,  and  grow  their  business,  expand  coast-to-coast,  and  thrive  as  an  industry  leader. 
Since  our  humble  beginning  in  1920  to  today,  Bird  has  persevered  through  times  of  war,  economic 
downturns, and natural disasters. During the end of the first quarter, we, along with the rest of the world, 
faced our next challenge – a global pandemic. Everything we knew changed, and we were all challenged 
to think differently. From this, came innovative ways to address safety, community, and business. 2020 also 
provided opportunities, with the acquisition of Stuart Olson. 

Through everything that our 100th year brought, the key ingredient to our continued success remained our 
employees  and  their  commitment  to  the  company.  Throughout  our  history,  talented  and  passionate 
employees  have  contributed  immensely  to  our  growth  by  operating  with  integrity  and  professionalism, 
creating  a  collaborative  environment  that  fosters  teamwork,  collective  stewardship,  and  a  robust  safety 
culture. Now, as a combined organization, we are even more excited for our future. As we look back on a 
significant 2020, we are proud to highlight our accomplishments.  

Delivering Value 

Over the past year, we continued to deliver value for our people, clients, communities, and shareholders, 
as  we  have  for  the  past  100  years.  Our  focus  remained  on  maintaining  a  strong  balance  sheet,  which 
enabled us to invest in long-term growth strategies, both organic and acquisition-related opportunities. We 
continue to focus on increasing profitability into the coming year, driven by our record Backlog, our balanced 
risk profile, and the integration of the Stuart Olson team.  

Driving a Culture of Safety 

The  pandemic  has  undoubtedly  impacted  our  industry  with  temporary  project  shutdowns  and  reduced 
productivity  on  project  sites.  Throughout  these  unprecedented  times,  we  remained  proud  of  our  team’s 
ability to adapt to ensure the health and safety of our employees remained at the forefront as we navigated 
our new reality. New, more robust measures were quickly introduced to keep our employees safe and help 
to flatten the curve. This included almost 12,000 site inspections, new COVID-19 measure audits, additional 
personal protective equipment, strategies to reduce the concentration of workers on site, and remote work 
practices,  to  name  a  few.  We  would  both  like  to  personally  thank  our  employees  who  worked  tirelessly 
throughout the pandemic to ensure that we operated safely and effectively, while continuing to deliver on 
our project commitments.  

Creating an Industry Leading Organization 

On  September  25,  2020,  we  completed  our  acquisition  of  Stuart  Olson.  We  welcomed  the  additional 
employees,  clients,  shareholders,  and  all  other  stakeholders  to  create  an  industry-leading  Canadian 
construction  company.  This  accretive  acquisition,  which  was  the  largest  and  most  transformative  in  our 
100-year  history,  will  create  long-term  value  for  years  to  come.  Throughout  our  integration  process,  we
continue to leverage best practices across our teams to create a strong, innovative, and dynamic company
that provides our employees with a best-in-class working environment, and our clients with an exceptional
service offering.

Executing Excellence 

Our teams successfully delivered a number of projects in 2020, including substantial general contracting 
and  maintenance  work  for  our  industrial  clients  across  Canada,  and  securing  additional  contracts  with 
longstanding clients. Our buildings team successfully executed on, and secured new projects from coast-
to-coast,  including  educational  and  recreational  facilities,  mixed-used  residential  buildings,  police 
detachments, health care projects, and modular construction. Commercial systems continued to deliver on, 

i

and  were  awarded  contracts  for  major  health  care  projects,  post-secondary  facilities,  food  processing 
plants, high-rise, mixed-use residential buildings, and institutional projects.   

Promoting Sustainability 

Sustainability at Bird is a continuous journey of learning, evolving, innovating, and growing. As part of this, 
we are excited to include our Sustainability Overview in our 2020 Annual Report. This document provides 
a  snapshot  of  some  of  the  Environmental,  Social,  and  Governance  (ESG)  initiatives  that  are  currently 
underway  across  Bird.  As  an  organization,  our  long-term  strategic  vision  is  rooted  in  our  belief  that  the 
construction industry plays an important role in providing sustainable, innovative, and lasting solutions for 
not only our employees, clients, and partners, but for the communities in which we live and work. Over the 
coming years, we will continue to execute on our ESG strategy, which will include the release of a more 
substantive report. 

Building our Future Together 

We  are  an  industry-leading  Canadian  construction  company  with  an  even  greater  ability  to  service  our 
clients  coast-to-coast  and  provide  our  employees  with  exciting  opportunities  as  a  larger,  more  diverse 
organization. With a strong balance sheet and record Backlog, we continue to invest in long-term growth 
opportunities, securing our place amongst the largest and most robust construction companies in Canada. 
We are excited for our collective future and our continued ability to deliver every day for our people, clients, 
communities, and shareholders.   

Thank you for your continued support, and welcome to #ourbestbuildyet. 

Paul A. Charette 
Chairman of the Board 

Terrance L. McKibbon 
President and CEO 

ii

SUSTAINABILITY
OVERVIEW 2020

T A B L E   O F 
C O N T E N T S

Bird’s Commitment 

A Message from Teri McKibbon

Build Green

Mass Timber

Prefabrication

Stack Modular

Work Green

BIM/VDC

Centre for Building Performance

Waste Management

Supply Chain Management

Live Green

Health and Safety

COVID-19 Response

Indigenous Relations

Community Connections

Human Capital Development

Stakeholder Engagement

Commitment to Governance

Risk Management

Oversight

4
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35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
B I R D ’ S   
C O M M I T M E N T

Bird  Construction  has  been  building  on  a  tradition  of  trust  through  dedication,  collaboration,  customer  
satisfaction,  and  value  creation  for  over  100  years.  Bird’s  approach  to  sustainability  is  a  reflection  of  its  
commitment  to  the  core  company  values  of  safety,  people,  teamwork,  professionalism,  integrity,  and  
stewardship. These values guide us in all we do and ensure that, as an organization, Bird provides sustainable 
value and accretive contributions to its clients, employees, shareholders, and the communities in which Bird and 
our employees live and work. 

As  of  September  2020,  Bird  and  Stuart  Olson  officially  joined  forces  to  create  a  leading  Canadian  
construction  company.  Informed  by  leading  industry  standards  and  best  practices,  the  combined  entity  is  
consistently striving towards maximizing its social and environmental impact, as well as highlighting the strong 
corporate governance framework in place that ensure accountability and stewardship across all of its operations.

This  Sustainability  Overview  provides  a  snapshot  of  some  of  the  Environmental,  Social,  and  Governance  (ESG)  
(cid:73)(cid:78)(cid:73)(cid:84)(cid:73)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69)(cid:83)(cid:3)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:87)(cid:65)(cid:89)(cid:3)(cid:65)(cid:67)(cid:82)(cid:79)(cid:83)(cid:83)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:14)(cid:3)(cid:41)(cid:84)(cid:3)(cid:73)(cid:83)(cid:3)(cid:78)(cid:79)(cid:84)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:69)(cid:72)(cid:69)(cid:78)(cid:83)(cid:73)(cid:86)(cid:69)(cid:3)(cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:3)(cid:79)(cid:70)(cid:3)(cid:65)(cid:76)(cid:76)(cid:3)(cid:79)(cid:70)(cid:3)(cid:79)(cid:85)(cid:82)(cid:3)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:12)(cid:3)(cid:78)(cid:79)(cid:82)(cid:3)(cid:68)(cid:79)(cid:69)(cid:83)(cid:3)(cid:73)(cid:84)(cid:3)(cid:82)(cid:69)(cid:109)(cid:69)(cid:67)(cid:84)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3) 
complexity of our long-term strategic approach to sustainability. 

Bird is committed to entrenching sustainability best practices within all areas of the business, transforming the way we 
work, build, and live. In pursuit of this objective, we have undertaken a systemic review to inform how we can better track 
our progress towards our sustainability goals, and expand our disclosure across a wide range of key metrics, including 
conforming  to  the  leading  reporting  frameworks  utilized  within  our  industry.  This  will  be  an  ongoing  process  as  our  
(cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:89)(cid:3)(cid:67)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:69)(cid:83)(cid:3)(cid:84)(cid:79)(cid:3)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:69)(cid:3)(cid:84)(cid:79)(cid:3)(cid:82)(cid:69)(cid:109)(cid:69)(cid:67)(cid:84)(cid:3)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:3)(cid:70)(cid:65)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:14)

Bird’s sustainability journey is led by our ESG Executive Sponsors and the ESG Executive Steering Committee, and is  
driven by senior leaders and subject matter experts drawn from across our operating groups.

ESG EXECUTIVE SPONSORS
(cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:3)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)
SVP Strategic Development

ESG EXECUTIVE STEERING COMMITTEE
(cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:3)(cid:48)(cid:69)(cid:79)(cid:80)(cid:76)(cid:69)(cid:3)(cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)
EVP Health, Safety, and Environment
EVP Buildings West
SVP Industrial Maintenance

ESG WORKING GROUPS
Senior managers and subject matter 
experts from Operations, Health and 
Safety, People and Culture,  
Marketing and Communications,  
Finance, and Risk Management

S U S T A I N A B I L I T Y   O V E R V I E W

Sustainability  
at Bird is a  
continuous journey  
of learning,  
evolving, innovating,  
and growing.

$1.5B

CONSTRUCTION 
REVENUE1

$2.7B

BACKLOG2

$1.6B

PENDING
BACKLOG2

A   M E S S A G E   F R O M 
T E R I   M C K I B B O N
P R E S I D E N T   &   C E O

Sustainable  building  practices,  robust  health  and 
safety standards, substantial community investment, 
authentic 
Indigenous  engagement,  and  strong  
corporate governance are at the core of everything 
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Sustainability  Overview,  which  highlights  the  great 
things Bird has accomplished from coast to coast. 

in 

Bird’s  long-term  strategic  vision  is  rooted  in  our  
industry  plays  an  
belief  that  the  construction 
important 
sustainable,  
role 
innovative,  and  lasting  solutions  for  not  only  our 
clients,  partners,  and  employees,  but 
for  the  
communities 
live  and  work.  
Global events of this past year remind us of just how  
intrinsically linked we all are. 

in  which  we 

providing 

P

A

G

E

0

5

Over the coming years, we will continue to develop, 
execute,  and  deliver  on  our  Environmental,  Social, 
and  Governance  Strategy,  which  will  include  the  
release  of  a  more  substantive  report. 
look  
forward to our future as an organization, industry, and  
collective, as we work together to create a stronger 
future for us all.

I 

1Consolidated results for the year ended  
December 31, 2020.
2Consolidated results as at December 31, 2020. 
Refer to the “Terminology & Non-GAAP Measures”  
section of Bird’s MD&A for the year ended  
December 31, 2020.

B U I L D 
G R E E N

Pursuing opportunities to utilize sustainable 
building materials and minimize resource waste

Bird is committed to sustainable construction. We have partnered with our clients to  
deliver  complex  and  innovative  building  systems  that  meet  LEED®,  Green  Globes,  
Passive  House,  and  Zero  Carbon  building  requirements.  By  utilizing  sustainable 
building  materials  and  minimizing  resource  use  and  waste,  we  can  realize  both  
(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:79)(cid:83)(cid:84)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:14)

Over  the  last  decade,  Bird  has  delivered  over  200  projects  that  are  built  to  
(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3) (cid:79)(cid:82)(cid:3) (cid:72)(cid:65)(cid:86)(cid:69)(cid:3) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:68)(cid:3) (cid:44)(cid:37)(cid:37)(cid:36)(cid:3) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:72)(cid:65)(cid:83)(cid:3) (cid:44)(cid:37)(cid:37)(cid:36)  
(cid:44)(cid:37)(cid:37)(cid:36)(cid:3)
Accredited  professionals  across  Canada  and  is  a  proud  member  of  the  Canada  
Green Building Council (CaGBC). 

H U M B E R   C O L L E G E   B U I L D I N G   N X

T O R O N T O ,   O N T A R I O

Humber  College  Building  NX  received  the  2020  Ontario  Consulting  
(cid:37)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71)(cid:3) (cid:33)(cid:87)(cid:65)(cid:82)(cid:68)(cid:3) (cid:70)(cid:79)(cid:82)(cid:3) (cid:51)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:14)(cid:3) (cid:41)(cid:84)(cid:3) (cid:73)(cid:83)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:108)(cid:82)(cid:83)(cid:84)(cid:3) (cid:82)(cid:69)(cid:84)(cid:82)(cid:79)(cid:108)(cid:84)(cid:3) (cid:73)(cid:78)(cid:3) (cid:35)(cid:65)(cid:78)(cid:65)(cid:68)(cid:65)(cid:3) (cid:84)(cid:79)(cid:3)
achieve  the  Canada  Green  Building  Council’s  Zero  Carbon  Building- 
(cid:36)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:3) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:73)(cid:83)(cid:3) (cid:79)(cid:78)(cid:3) (cid:84)(cid:82)(cid:65)(cid:67)(cid:75)(cid:3) (cid:84)(cid:79)(cid:3) (cid:65)(cid:67)(cid:72)(cid:73)(cid:69)(cid:86)(cid:69)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:108)(cid:82)(cid:83)(cid:84)(cid:3) (cid:48)(cid:65)(cid:83)(cid:83)(cid:73)(cid:86)(cid:69)(cid:3) (cid:40)(cid:79)(cid:85)(cid:83)(cid:69)(cid:3) 
(cid:37)(cid:78)(cid:69)(cid:82)(cid:48)(cid:40)(cid:73)(cid:84)(cid:3)(cid:35)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:70)(cid:79)(cid:82)(cid:3)(cid:65)(cid:3)(cid:78)(cid:79)(cid:78)(cid:13)(cid:82)(cid:69)(cid:83)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:3)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:73)(cid:78)(cid:3)(cid:35)(cid:65)(cid:78)(cid:65)(cid:68)(cid:65)(cid:14)

(cid:52)(cid:72)(cid:73)(cid:83)(cid:3) (cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:13)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:3) (cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3) (cid:69)(cid:78)(cid:84)(cid:65)(cid:73)(cid:76)(cid:69)(cid:68)(cid:3) (cid:65)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:3) (cid:69)(cid:78)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:69)(cid:3) (cid:82)(cid:69)(cid:84)(cid:82)(cid:79)(cid:108)(cid:84)(cid:3) (cid:84)(cid:72)(cid:65)(cid:84)(cid:3) (cid:73)(cid:83)(cid:3) 
(cid:72)(cid:73)(cid:71)(cid:72)(cid:76)(cid:89)(cid:3) (cid:73)(cid:78)(cid:83)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:65)(cid:73)(cid:82)(cid:84)(cid:73)(cid:71)(cid:72)(cid:84)(cid:14)(cid:3) (cid:52)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:3) (cid:65)(cid:3) (cid:68)(cid:69)(cid:69)(cid:80)(cid:3) (cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3) (cid:82)(cid:69)(cid:84)(cid:82)(cid:79)(cid:108)(cid:84)(cid:12)(cid:3) (cid:73)(cid:84)(cid:3) (cid:72)(cid:65)(cid:83)(cid:3) (cid:66)(cid:69)(cid:69)(cid:78)(cid:3)
(cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:79)(cid:82)(cid:77)(cid:69)(cid:68)(cid:3) (cid:73)(cid:78)(cid:84)(cid:79)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:77)(cid:79)(cid:83)(cid:84)(cid:3) (cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3) (cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:79)(cid:78)(cid:3) (cid:67)(cid:65)(cid:77)(cid:80)(cid:85)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:79)(cid:78)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3)
(cid:84)(cid:72)(cid:69)(cid:3)(cid:77)(cid:79)(cid:83)(cid:84)(cid:3)(cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83)(cid:3)(cid:73)(cid:78)(cid:3)(cid:46)(cid:79)(cid:82)(cid:84)(cid:72)(cid:3)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:14)(cid:3)

S U S T A I N A B I L I T Y   O V E R V I E W

200+
LEED  
PROJECTS1

1 Bird and Stuart Olson combined, 2020.

Sustainable  
design through 
creativity,  
collaboration, 
and dedication. 

70%

REDUCTION IN 
ENERGY USE 
INTERNALLY

90%

REDUCTION  
IN GHG 
EMISSIONS

97%

REDUCTION IN 
HEATING 
ENERGY

A C T I V E   W A T E R   T R E A T M E N T   S Y S T E M

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(cid:47)(cid:78)(cid:3) (cid:45)(cid:65)(cid:82)(cid:67)(cid:72)(cid:3) (cid:19)(cid:16)(cid:12)(cid:3) (cid:18)(cid:16)(cid:18)(cid:16)(cid:12)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:7)(cid:83)(cid:3) (cid:51)(cid:73)(cid:84)(cid:69)(cid:3) (cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:84)(cid:69)(cid:65)(cid:77)(cid:3) (cid:82)(cid:69)(cid:65)(cid:67)(cid:72)(cid:69)(cid:68)(cid:3) (cid:65)(cid:3) (cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84)(cid:3) 
environmental  milestone  on  an  industrial  project.  Over  50,000,000  gallons  of  
treated  construction  contact  water  was  delivered  back  into  the  environment  
without incident (the equivalent volume of water in 75 Olympic-sized pools). 

The  entire  project  site  falls  within  a  temperate  rainforest  that  supports  a  rich  
(cid:68)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:84)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:87)(cid:73)(cid:76)(cid:68)(cid:76)(cid:73)(cid:70)(cid:69)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:73)(cid:84)(cid:3)(cid:73)(cid:83)(cid:3)(cid:65)(cid:76)(cid:83)(cid:79)(cid:3)(cid:78)(cid:69)(cid:65)(cid:82)(cid:3)(cid:79)(cid:78)(cid:69)(cid:3)(cid:79)(cid:70)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:87)(cid:79)(cid:82)(cid:76)(cid:68)(cid:7)(cid:83)(cid:3)(cid:76)(cid:65)(cid:82)(cid:71)(cid:69)(cid:83)(cid:84)(cid:3)(cid:48)(cid:65)(cid:67)(cid:73)(cid:108)(cid:67)(cid:3)(cid:50)(cid:73)(cid:77)(cid:3)(cid:51)(cid:65)(cid:76)(cid:77)(cid:79)(cid:78)(cid:3)
ranges. Federal and provincial regulators required 3,500 commitments in order for 
the project to proceed. One of these commitments is that the discharge of water 
off site is to be as clean as the surrounding rivers and creeks.

In  order  to  meet  regulatory  compliance  while  keeping  construction  timelines, 
Bird  mobilized  an  active  water  treatment  system.  The  success  of  the  system 
placed Bird in the position to assist other contractors to meet their water quality  
management  requirements.  Bird  is  looking  forward  to  achieving  the  next  major 
milestone  of  delivering  clean  water  off  site,  while  maintaining  compliance  with 
the BC Water Quality Guidelines over the course of the remainder of the project.

>50M

GALLONS OF TREATED 
CONSTRUCTION  
CONTACT WATER  
DISCHARGED OFFSITE

ZERO

ENVIRONMENTAL
INFRACTIONS

+2M m3

SOIL/AGGREGATES
SAFELY MOVED

M A S S   
T I M B E R

Mass  Timber  projects  offer 
low  carbon  solutions  using  a  
renewable  resource  as  a  primary  construction  material.  Through  
sustainable  forestry,  wood-based  materials  capture  carbon  and  
offset total CO2 emissions. 

L E T H B R I D G E   C O L L E G E

L E T H B R I D G E ,   A L B E R T A

K W A N L I N   D Ü N   C U L T U R A L 
C E N T R E
W H I T E H O R S E ,   Y U K O N

Visibility  of  wood 
improves productivity and happiness: 

in  the  working  environment  

•  Physical workplace satisfaction: 81% vs 47%
•  Better concentration: 83% vs 65%
•  Lower stress levels: 65% vs 42%
•  Optimistic about the future: 61% vs 44%1

1 “Workplaces: Wellness + Wood = Productivity” Report prepared in 2018 for Forest & Wood  
Products Australia, by Andrew Knox, Howard Parry-Husbands, and Pollinate.

$1B+

COMPLETED/ 
UNDER 
CONSTRUCTION1

20+PROJECTS
COMPLETED/
UNDER
CONSTRUCTION2

1, 2, Bird and Stuart Olson combined, to date.

with 

leader 

extensive 

is  a  North  American 

in  wood  
Bird 
construction 
expertise,  
experience,  and  supply  chain  knowledge.  We 
have  the  in-house  expertise  to  develop  Cross 
Laminated  Timber,  Nailed  Laminated  Timber, 
wood-frame,  and  hybrid  projects  from  concept 
to  substantial  completion.  With  an  in-depth  
(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:79)(cid:70)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:76)(cid:73)(cid:77)(cid:73)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)
of  different  mass  timber  and  engineered  wood 
(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:83)(cid:12)(cid:3) (cid:87)(cid:69)(cid:3) (cid:68)(cid:69)(cid:76)(cid:73)(cid:86)(cid:69)(cid:82)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3) (cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:3) (cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:73)(cid:69)(cid:83)(cid:3)
(cid:84)(cid:79)(cid:3)(cid:77)(cid:65)(cid:88)(cid:73)(cid:77)(cid:73)(cid:90)(cid:69)(cid:3)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:65)(cid:76)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:73)(cid:69)(cid:83)(cid:14)(cid:3)

Our  strong  North  American  network  of  material 
supply  channels  effectively  service  mass  timber 
projects.  By  leveraging  our  global  relationships 
with  designers,  consultants,  subtrades,  and  
(cid:83)(cid:85)(cid:66)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3)(cid:77)(cid:65)(cid:84)(cid:84)(cid:69)(cid:82)(cid:3)(cid:69)(cid:88)(cid:80)(cid:69)(cid:82)(cid:84)(cid:83)(cid:12)(cid:3)(cid:79)(cid:85)(cid:82)(cid:3)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:83)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:3)(cid:70)(cid:82)(cid:79)(cid:77)(cid:3)
forward-thinking 
cutting-edge 
strategies,  and  value-maximizing  processes  and  
methodologies.  This  results  in  buildings  that 
improve  communities,  user  experience,  and  
the environment. 

technologies, 

S U R R E Y   M A I N ,   K W A N T L E N   U N I V E R S I T Y

S U R R E Y,   B R I T I S H   C O L U M B I A

A L B E R T A   C A R P E N T E R S   U N I O N   P E N S I O N 
B U I L D I N G
E D M O N T O N ,   A L B E R T A

    R I C H M O N D   O V A L

The  Richmond  Oval,  a  2010  Olympic  Games  
facility,  used  
legacy  community 
venue  and 
local and regional sustainably produced materials 
–  in  particular  wood  –  to  connect  with  the  local  
Indigenous building aesthetics.

The 43,000-square-metre facility featured a clear 
span  of  almost  100  metres  to  ensure  no  visual  
obstructions  for  spectators.  Composite  wood  
glulam  beams  spanned  the  space,  proving  that 
even very large span projects can be realized cost 
effectively through innovation in the use of wood. 
The  project  was  awarded  the  Canadian  Wood 
Council/Wood WORKS! BC Wood Design Award 
for Institutional Wood Design in 2009.

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C A L G A R Y,   A L B E R T A

  E A S T   H A N T S   A Q U AT I C   C E N T R E

One  of  the  largest  infrastructure  builds  in  East  Hants  
history, the new Aquatic Centre in Elmsdale, Nova Scotia 
is designed for the enjoyment of people of all ages and  
abilities.  Bird,  the  ownership  team,  and  the  design 
team,  were  all  committed  to  using  local  resources  
wherever  possible.  For  example,  the  wood  for  the  
showcase 
Laminated  
1,500-square-metre  Nailed 
Timber  roof  over  the  natatorium  was  harvested  within 
10  kilometres  of  the  local  sawmill.  Bird’s  self-perform 
team manufactured the Nailed Laminated Timber panels 
straight from the sawmill planers and installed the roof. 

R I C H M O N D ,   B R I T I S H   C O L U M B I A

  C E N T R A L   L I B R A R Y     

space 

The  new  Calgary  Central  Library  provides  
nearly  22,300  square  metres  of  beautifully  
designed 
in  Calgary’s  East  Village.  
(cid:33)(cid:87)(cid:65)(cid:82)(cid:68)(cid:69)(cid:68)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:44)(cid:37)(cid:37)(cid:36)(cid:3) (cid:39)(cid:79)(cid:76)(cid:68)(cid:3) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:72)(cid:73)(cid:71)(cid:72)(cid:3) 
(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:89)(cid:3)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:69)(cid:78)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:69)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:83)(cid:3)(cid:79)(cid:70)(cid:3)(cid:20)(cid:22)(cid:21)(cid:3)(cid:85)(cid:78)(cid:73)(cid:81)(cid:85)(cid:69)(cid:3) 
curtainwall panels. The building also encapsulates 
the  LRT  tunnel,  emerging  at  grade  level.  Among 
the  mass  timber  elements  in  the  avant-garde  
design are expansive curved cedar battens along 
the  ceilings  and  walls,  western  red  cedar  planks 
(cid:73)(cid:78)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3)(cid:80)(cid:76)(cid:65)(cid:90)(cid:65)(cid:12)(cid:3)(cid:87)(cid:72)(cid:73)(cid:84)(cid:69)(cid:3)(cid:79)(cid:65)(cid:75)(cid:3)(cid:65)(cid:84)(cid:82)(cid:73)(cid:85)(cid:77)(cid:3)(cid:109)(cid:79)(cid:79)(cid:82)(cid:83)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3) 
western hemlock on the vertical surfaces.

E L M S D A L E ,   N O V A   S C O T I A

P R E FA B R I C AT I O N

The  offsite  fabrication  and  assembly  of  specialty  modular  skid  units 
can  mitigate  site  safety  risks  and  improve  overall  usage  and  waste  
of consumables

O F F S I T E   F A B R I C A T I O N   A N D   M O D U L A R I Z A T I O N   
C O N T R I B U T E   T O   O U R   S U S T A I N A B I L I T Y   G O A L S

•  Waste minimization and lower waste removal costs
• 

Improved project schedules as fabrication and module assembly  
occur in parallel with site development and piling programs
Improved quality due to a controlled module yard environment 

• 
•  (cid:50)(cid:69)(cid:68)(cid:85)(cid:67)(cid:69)(cid:68)(cid:3)(cid:83)(cid:73)(cid:84)(cid:69)(cid:3)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:82)(cid:73)(cid:83)(cid:75)(cid:12)(cid:3)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:3)(cid:84)(cid:82)(cid:65)(cid:70)(cid:108)(cid:67)(cid:3)(cid:84)(cid:79)(cid:3) 

remote project sites
Improved safety performance 
Increased productivity 

• 
• 
•  Reduced site laydown space requirements 
•  Reduced onsite power consumption
•  Recyclability of steel

M E C H A N I C A L

E L E C T R I C A L

I N S T R U M E N T A T I O N

Our  industrial  modular  capabilities  include  a  wide  range  of  solutions  including  electrical  houses,  modular  water  
facilities, and industrial process piping. The commercial systems business is an industry leader in the offsite assembly of 
(cid:80)(cid:82)(cid:69)(cid:70)(cid:65)(cid:66)(cid:82)(cid:73)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3)(cid:77)(cid:79)(cid:68)(cid:85)(cid:76)(cid:65)(cid:82)(cid:73)(cid:90)(cid:69)(cid:68)(cid:3)(cid:83)(cid:89)(cid:83)(cid:84)(cid:69)(cid:77)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:78)(cid:69)(cid:78)(cid:84)(cid:83)(cid:12)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:3)(cid:108)(cid:86)(cid:69)(cid:3)(cid:80)(cid:82)(cid:69)(cid:70)(cid:65)(cid:66)(cid:82)(cid:73)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:65)(cid:67)(cid:82)(cid:79)(cid:83)(cid:83)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:82)(cid:89)(cid:14)

(cid:55)(cid:69)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:70)(cid:85)(cid:77)(cid:69)(cid:3) (cid:69)(cid:88)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3) (cid:108)(cid:76)(cid:84)(cid:69)(cid:82)(cid:3) (cid:65)(cid:76)(cid:76)(cid:3) (cid:87)(cid:69)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:70)(cid:85)(cid:77)(cid:69)(cid:83)(cid:12)(cid:3) (cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:73)(cid:78)(cid:71)(cid:3) 
harmful exhausts and capturing any hazardous particulates. Clean air 
(cid:73)(cid:83)(cid:3)(cid:82)(cid:69)(cid:76)(cid:69)(cid:65)(cid:83)(cid:69)(cid:68)(cid:3)(cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:108)(cid:76)(cid:84)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:3)(cid:73)(cid:83)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:68)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:83)(cid:69)(cid:3)(cid:67)(cid:79)(cid:76)(cid:76)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3)
help  to  prevent  safety  risks  and  health  problems  caused  by  dust, 
(cid:70)(cid:85)(cid:77)(cid:69)(cid:83)(cid:12)(cid:3)(cid:77)(cid:73)(cid:83)(cid:84)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:83)(cid:77)(cid:79)(cid:75)(cid:69)(cid:12)(cid:3)(cid:65)(cid:83)(cid:3)(cid:87)(cid:69)(cid:76)(cid:76)(cid:3)(cid:65)(cid:83)(cid:3)(cid:69)(cid:88)(cid:80)(cid:76)(cid:79)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:108)(cid:82)(cid:69)(cid:83)(cid:14)(cid:3)(cid:41)(cid:78)(cid:3)(cid:65)(cid:68)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:84)(cid:79)(cid:3)
improving worker safety and comfort, this process helps to protect 
valuable equipment from contamination. 

The  recyclability  of  steel  makes  it  a  very  
sustainable  material.  Scrap  metal  recycling 
plays  a  critical  role  in  reclaiming  valuable  
secondary  materials  for  reuse 
into  new  
products,  helping  us  to  conserve  natural  
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ensure  that  all  of  our  scrap  metals  are  
recycled,  and  gather  various  materials  in  
recycling bins throughout the site. 

Our  electronically  managed  consumable  distribution  system  within 
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overall usage and waste of consumables, improves productivity, and 
provides better visibility and control.

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conscious  project  for  our  clients,  employees,  partners,  community  and  all  other  
stakeholders 
innovation,  
technology,  and  utilizing  manufacturing/production 
line  philosophies  whilst  
operating in a contractors that care culture.”

involved.  Achieved  by  planning, 

collaboration, 

P a u l   B l a n c h a r d ,   C o m m e r c i a l   S y s t e m s   G r o u p   P r e f a b r i c a t i o n   S h o p   M a n a g e r

    B M O   C O N V E N T I O N   C E N T R E   E X P A N S I O N   –   H A L L   F

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C A L G A R Y,   A L B E R T A

is  part  of 

the  BMO  Convention  Centre  Expansion  
Hall  F 
undertaken  by  the  Calgary  Stampede.  The  team  undertook  the  
construction management project to provide 4,533 square metres of  
additional hall/trade space to the existing BMO Convention Centre, 
complimenting  the  existing  footprint  of  the  facility  and  allowing  for 
the next phases of the expansion. 

Our  commercial  systems  business  team  was  awarded  the  electrical 
contract,  and  utilized  their  local  pre-fabrication  shop  to  increase  
overall safety, improve project schedule, decrease waste, and reduce 
costs by over 50% for the panels and transformers.

the 

for  
Prefabrication  offers  opportunities 
commercial 
systems  
innovation: 
business  worked 
collaboratively  with 
the  owner  and  consultant  to  create  a  
vertical  show  panel  assembly  on  cantruss,  
achieving 
overall  
footprint. The shallow cantruss support was  
designed  to  secure  the  panel  assembly  to  
the catwalk while leaving the end user with 
more working space.

a  much 

smaller 

REDUCED
SITE RISK

INCREASED
PRODUCTIVITY

IMPROVED
SAFETY

EFFICIENT
USE OF 
RESOURCES

S T A C K 
M O D U L A R

investment 

The  company’s 
in  modular  
construction,  through  its  50%  partnership 
with  Stack  Modular,  contributes  to  Bird’s 
overall environmental sustainability focus

A Q S A R N I I T   H O T E L   A N D   C O N V E N T I O N   C E N T R E
I Q A L U I T,   N U N A V U T

Image courtesy of Bill Williams

T H E   M O D U L A R   D I F F E R E N C E

Greener process than conventional construction 

Generates up to 90% less construction waste 

Consumes less energy during the construction  
process and during operation

Projects can be completed 30 - 50% faster than 
conventional construction

Delivery of sophisticated construction facilities 
to remote locations and urban areas

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Controlled manufacturing conditions reduce  
the risks of safety incidents

Less material exposure to inclement weather

Ease of construction on urban or congested sites

Advantages of repeatability 

Can exceed Energy Code compliance 

A Q S A R N I I T   H O T E L   A N D   C O N V E N T I O N   C E N T R E

I Q A L U I T,   N U N A V U T

The  Bird/Stack  Modular  partnership  was  awarded  the  contract  to  construct  this  hotel  and  conference  centre  in  
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centre  in  the  city,  and  is  comprised  of  a  465-square-metre  conference  centre,  94-room  full-service  hotel,  lounge,  
restaurant, commercial space, and gym. This project leveraged the Bird/Stack partnership’s capability to deliver a
turnkey solution that bridges the gap between site and modular construction.

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and  reduced  the  schedule  by  close  to  a  year.  A  prototype  modular  unit  was  produced  by  Stack  Modular’s  
international supply chain in less than four weeks for client approval. The modular units, which are of the highest quality  
in  the  industry,  also  feature  outboard  insulation  that  optimizes  thermal  performance  and  assists  in  creating  an  
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W O R K   G R E E N

Delivering innovative solutions for sustainable construction

N I A G A R A   F A L L S   E N T E R T A I N M E N T   C E N T R E ,   O N T A R I O

B U I L D I N G   I N F O R M AT I O N   M O D E L I N G   ( B I M ) /
V I R T U A L   D E S I G N   A N D   C O N S T R U C T I O N   ( V D C )

Leveraging  technology  to  build  smarter,  more  efficient  buildings  through 
innovative solutions

•  Provides a new level of optimization in onsite construction to identify green solutions 

• 

and options for modularization or prefabrication 
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project stakeholders
Integrated process containing all digital information available for a project 

• 
•  Co-ordinated in a single dedicated model enabling visualization of all design and 

construction activities 

•  Leverages project information for constructability, co-ordination, and communication 

As  sustainable  construction  evolves  as  a  key  focus  for  the  
for  
industry  and  our  clients,  we  continuously 
innovative  solutions  that  can  improve  our  capability  in  
delivering projects that have a low-carbon footprint and use 
unique  energy  systems  to  reduce  waste  and  cost.  BIM  and 
VDC  allow  us  to  use  advanced  construction  intelligence  to 
identify  areas  of  opportunity,  such  as  green  solutions  for  
projects, or options for modularization and pre-fabrication. 

look 

VDC  allows  for  better  communication  of  the  design  intent 
as  well  as  the  development  of  fully  co-ordinated  project  
documentation.  VDC  co-ordinates  everything  from  early  
conceptual massing models to highly developed, thoroughly 
documented 3D models in the development of a Digital Twin 
of the physical project. 

S U S T A I N A B I L I T Y   O V E R V I E W

E F F I C I E N T
L O G I S T I C S   P L A N N I N G

C L A S H   D E T E C T I O N   F O R 
R E D U C E D   R E W O R K

4 D   S C H E D U L I N G   T O 
I M P R O V E   E F F I C I E N C I E S 

Q U A N T I T Y   T A K E O F F S   T O  
R E D U C E   W A S T E

I N T E G R A T I O N   W I T H   F A C I L I T Y 
M A I N T E N A N C E   S E R V I C E S   T O   
M A X I M I Z E   L I F E S P A N

Y O R K   U N I V E R S I T Y   M A R K H A M   C E N T R E   C A M P U S

The  new  York  University  campus  in  Markham  aims  to  meet  the  education,  research,  and  innovation  needs  of  an  
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students.  The  building  consists  of  a  four-storey  podium  with  a  six-storey  tower,  and  a  mechanical  penthouse. 
The design of the building and landscaped areas includes several features that respond to the needs of Indigenous 
communities within and around the university campus.

York  University  is  committed  to  having  the  project  fully  designed,  constructed,  and  delivered  using  BIM.  The  
construction team will utilize the BIM model for clash co-ordination, issue tracking, quantity takeoffs, and visualizing  
construction  via  4D  animations.  By  viewing  the  4D  animations,  all  construction  personnel  will  be  aware  and  
knowledgeable  of  weekly  tasks  before  commencing  their  activities.  The  BIM  model  will  also  assist  with  change  
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•  Designed  to  achieve  CaGBC  LEED  Silver  as  a  

minimum sustainability standard

•  VDC team implementing laser scanning throughout  
construction  to  capture  all  services  before  wall/ 
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•  Using  4D 

schedule  allows 

to  
visualize  construction  prior  to  commencement,  
mitigating construction risks

stakeholders 

•  Operation  and  maintenance  documents  will 
be  added  to  the  3D  model,  which  will  be  used 
by  our  Centre 
to  
monitor performance of equipment and services

for  Building  Performance 

M A R K H A M ,   O N T A R I O

N I A G A R A   FA L L S   E N T E R TA I N M E N T   C E N T R E

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Bird,  as  part  of  the  Niagara  Falls  Entertainment  
Partners  consortium,  executed  the  contract  to  
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Falls  Entertainment  Centre  (NFEC)  facility  for  the  
Ontario  Lottery  and  Gaming  Corporation 
in 
the  City  of  Niagara  Falls.    The  facility  features  a  
performance 
stage  
space 
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(cid:67)(cid:79)(cid:78)(cid:108)(cid:71)(cid:85)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:83)(cid:3) (cid:83)(cid:69)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)
patrons. 
lobby  and  
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The project was designed and constructed to LEED  
v4 requirements, and was completed in June 2020.

features  a  public 

with  multiple 

It  also 

N I A G A R A   F A L L S ,   O N T A R I O

BIM  was  instrumental  in  the  long-term  co-ordination  of  the  project,  as  well  as  assisting  in  the 
day-to-day understanding of the intricate design.

•  3D models were utilized to develop the designs and provide detailed plans
•  Construction  took  place  above  an  existing  structure  and  adjacent  to  a  busy  hotel.  Laser  scanning  was  used  to  

capture the existing structure, which was then modeled to co-ordinate with the proposed designs

•  (cid:34)(cid:41)(cid:45)(cid:3)(cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:80)(cid:76)(cid:65)(cid:89)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:3)(cid:73)(cid:77)(cid:80)(cid:79)(cid:82)(cid:84)(cid:65)(cid:78)(cid:84)(cid:3)(cid:82)(cid:79)(cid:76)(cid:69)(cid:3)(cid:73)(cid:78)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:12)(cid:3)(cid:80)(cid:65)(cid:82)(cid:84)(cid:73)(cid:67)(cid:85)(cid:76)(cid:65)(cid:82)(cid:76)(cid:89)(cid:3)(cid:79)(cid:78)(cid:3)(cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:3)(cid:81)(cid:85)(cid:65)(cid:78)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)
(cid:84)(cid:69)(cid:83)(cid:84)(cid:83)(cid:14)(cid:3)(cid:41)(cid:84)(cid:3)(cid:87)(cid:65)(cid:83)(cid:3)(cid:70)(cid:79)(cid:85)(cid:78)(cid:68)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:84)(cid:72)(cid:73)(cid:83)(cid:3)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:3)(cid:87)(cid:65)(cid:83)(cid:3)(cid:65)(cid:84)(cid:3)(cid:76)(cid:69)(cid:65)(cid:83)(cid:84)(cid:3)(cid:84)(cid:72)(cid:82)(cid:69)(cid:69)(cid:3)(cid:84)(cid:73)(cid:77)(cid:69)(cid:83)(cid:3)(cid:77)(cid:79)(cid:82)(cid:69)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3)(cid:84)(cid:72)(cid:65)(cid:78)(cid:3)(cid:84)(cid:82)(cid:65)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:3)(cid:84)(cid:65)(cid:75)(cid:69)(cid:13)(cid:79)(cid:70)(cid:70)(cid:83)(cid:3)(cid:80)(cid:82)(cid:79)(cid:84)(cid:79)(cid:67)(cid:79)(cid:76)(cid:83)
•  Owner-initiated  changes  in  the  later  stages  of  the  project  could  be  accurately  designed  based  on  construction 

progress and as-built conditions detailed in the models

C E N T R E   F O R   B U I L D I N G   P E R F O R M A N C E

Constructing smarter, more efficient, and environmentally-friendly buildings

Our  Centre  for  Building  Performance  (CfBP)  is  dedicated  to  assisting  construction  teams,  designers,  and  
(cid:84)(cid:79)(cid:3) (cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:3) (cid:83)(cid:77)(cid:65)(cid:82)(cid:84)(cid:69)(cid:82)(cid:12)(cid:3) (cid:77)(cid:79)(cid:82)(cid:69)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3) 
(cid:67)(cid:76)(cid:73)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3)
environmentally-friendly buildings. CfBP offers a variety of services from equipment and  building systems testing 
to software development and integration of the best equipment throughout the building.

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(cid:73)(cid:78)(cid:3) (cid:65)(cid:78)(cid:3) (cid:69)(cid:70)(cid:70)(cid:79)(cid:82)(cid:84)(cid:3)

(cid:84)(cid:79)(cid:3) (cid:66)(cid:69)(cid:84)(cid:84)(cid:69)(cid:82)(cid:3)

The range of innovative solutions offered by the CfBP has the potential to optimize the sustainability of building 
systems and minimize environmental impacts. This in-house service enables both our clients and our teams to 
(cid:87)(cid:79)(cid:82)(cid:75)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:76)(cid:89)(cid:3)(cid:84)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:79)(cid:85)(cid:84)(cid:3)(cid:69)(cid:86)(cid:69)(cid:82)(cid:89)(cid:3)(cid:83)(cid:84)(cid:69)(cid:80)(cid:3)(cid:79)(cid:70)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:14)

•  Targeted building technology solutions
•  Optimized sustainability of   

building systems

•  Multi-system integration
•  Reduced operating costs through  
efficient building management

(cid:52)(cid:72)(cid:69)(cid:3) (cid:73)(cid:78)(cid:86)(cid:79)(cid:76)(cid:86)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3) (cid:79)(cid:70)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:35)(cid:70)(cid:34)(cid:48)(cid:3) (cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3) (cid:84)(cid:72)(cid:65)(cid:84)(cid:3) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:67)(cid:3) (cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3) (cid:78)(cid:69)(cid:69)(cid:68)(cid:83)(cid:3)
are anticipated and addressed. With today’s staggering amount of 
options  when  it  comes  to  smart  building  technologies,  the  CfBP 
assists  project  teams  in  making  sure  that  the  right  systems  are  
considered 
ideal  outcomes.  This  eliminates  
infrastructure  redundancies,  which  not  only  saves  time  and  
(cid:77)(cid:79)(cid:78)(cid:69)(cid:89)(cid:3) (cid:66)(cid:85)(cid:84)(cid:3) (cid:65)(cid:76)(cid:83)(cid:79)(cid:3) (cid:77)(cid:65)(cid:75)(cid:69)(cid:83)(cid:3) (cid:65)(cid:3) (cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:77)(cid:79)(cid:82)(cid:69)(cid:3) (cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:83)(cid:69)(cid:3)
building performance solutions can reduce overall capital budgets 
by optimizing building systems and infrastructure while ensuring a 
high-performance building and faster occupancy handover.

support 

to 

in-house 

Post-occupancy, 
designed  
solutions  provide  valuable  insights  that 
simplify  building  management  
help 
and  maintenance  decisions, 
reduces  
operating  costs,  and  improves  efficiency.  
Clients  have  ownership  of  their  own  data,  
providing  access  to  real-time  information.  
Through 
their  mobile  devices,  clients  
are  able  to  see  what  is  causing  building  
issues,  thus  driving  better  and  more  
effective  building  maintenance  decisions, 
and  ensuring  all  systems  are  operating  at 
optimal capacity.

S U S T A I N A B I L I T Y   O V E R V I E W

U N I V E R S I T Y   O F   C A L G A R Y   
M A C K I M M I E   C O M P L E X 
R E D E V E L O P M E N T   P R O J E C T 

to 

construction 

The  MacKimmie  Tower  and  Block  project 
is  an  example  of  how  technology  can  add  
value 
This  
marriage  of  iconic  and  sustainable  design  with  
modern technology and building analytics is an  
important  case  study  for  the  future  of  high  
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projects. 

MacKimmie  Tower’s  double-skin  facade  will 
respond  to  changing  weather  and  works  in 
concert with the mechanical system to decrease 
energy  consumption  and  improve  the  indoor  
environment  in  terms  of  thermal  comfort,  day 
lighting,  and  air  quality.  The  design  of  the  
double 
along  with  photovoltaic  
panels  on  the  rooftop  and  integrated  into  the  
curtainwall,  add  to  the  sustainable  design  
features of the project, as well as the goal of net 
zero  carbon  emission.  The  complex  system  for 
air quality and temperature control is supported 
by a Gigabit Passive Optical Network (GPON).

facade, 

C A L G A R Y,   A L B E R T A

• 

• 

STRIVES  TO  BE  NET  CARBON  NEUTRAL  FOR  ANNUAL  
OPERATIONS:  THE  TOWER  ACHIEVED  NET  ZERO  CARBON 
STANDARDS IN 2020

IT  WILL  BE  ONE  OF  THE  MOST  ENERGY  EFFICIENT  BUILDINGS 
ON A CANADIAN POST-SECONDARY CAMPUS

G P O N
G I G A B I T   PA S S I V E   O P T I C A L   N E T W O R K

for 

forward 

the  complex 

Real  time  building  analytics  reporting  gave 
the  team  accurate  insights  into  the  building’s  
system performance throughout the project, and  
allowed  the  team  to  understand  the  best 
integrations  
way 
associated  with  the  project.  This  data  proved 
crucial  to  anticipating  and  resolving 
issues  
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the  
warranty.  The  University  has  adopted 
Centre’s  analytics  platform  since  completion, 
(cid:87)(cid:73)(cid:84)(cid:72)(cid:3)(cid:108)(cid:86)(cid:69)(cid:3)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83)(cid:3)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:79)(cid:78)(cid:76)(cid:73)(cid:78)(cid:69)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:89)(cid:3)(cid:65)(cid:82)(cid:69)(cid:3)(cid:79)(cid:78)(cid:3)
track  to  roll  out  building  analytics  to  the  rest  
of the campus.

>90%

CONSTRUCTION WASTE 
MATERIALS ARE BEING RECYCLED

150

NEW MATURE TREES ADDED  
TO THE REVITALIZED LANDSCAPE

~3,000
METRIC 
TONNES

CONCRETE RECYCLED  
TO DATE

67%

SAVINGS ON 
CAPITAL COSTS

96%

CABLE WEIGHT
REDUCTION

DRASTICALLY 
IMPROVED 
SECURITY 
NETWORK

30+

YEAR
LIFESPAN

P

A

G

E

1

7

68%

CORE EQUIPMENT
SPACE SAVINGS

72%

POWER USAGE
REDUCTION

is 

(GPON) 

Gigabit  Passive  Optical  Network 
a  
Single  Mode  Fibre  (SMF)  network  cabling  option  that  
consolidates  multiple  network  cables  down  to  one  
single, smaller, faster cable. It lays the groundwork for smart  
building 
fast  network  
access  required  in  this  age  of  technology.  Our  CfBP 
supports  clients  with 
this  
implementation  of 
the 
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technologies,  providing 

the 

•  Faster
•  Smaller footprint
•  (cid:45)(cid:79)(cid:82)(cid:69)(cid:3)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:76)(cid:69)
•  Less noise

•  Lighter
•  Safer
•  Stronger
•  Greener

 
U N I V E R S I T Y   O F   B R I T I S H 
C O L U M B I A   C E N T R E   F O R 
I N T E R A C T I V E   R E S E A R C H   
O N   S U S TA I N A B I L I T Y   ( C I R S )

the 

to  operate  at 

Designed 
frontier  of  sustainable  
performance  in  both  environmental  and  human  terms,  the 
CIRS  building  serves  as  a  living  laboratory  and  research  
testbed  for  sustainable  practice  over 
Its  
modern  communications  capabilities  facilitate  community  
outreach  programs  and  help 
sustainable  
futures.  It  is  also  central  to  our  CfBP’s  ongoing  research  
programs and initiatives.

visualize 

lifetime. 

its 

V A N C O U V E R ,   B R I T I S H   C O L U M B I A

•  Net  Positive  building  that  produces  more  energy 

from renewable sources than it consumes

•  (cid:47)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:3)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3)(cid:84)(cid:79)(cid:3)(cid:79)(cid:80)(cid:84)(cid:73)(cid:77)(cid:73)(cid:90)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3)
of equipment and systems by intelligently analyzing 
and aggregating operational data

•  Automated operator reporting

Q U A D R E A L

team 

installing, 

is  designing, 

Our  CfBP 
and  
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buildings across Canada. This entails the cut over of each  
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optic  cables  (including  security  cameras,  BMS,  lighting 
controls,  elevators,  energy  management  systems,  and 
high-speed  internet).  This  cut  over  is  the  integration  of 
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building  is  unique,  resulting  in  our  team  executing  37  
bespoke designs for optimum building performance.

•  Major savings on capital costs
•  Lower power consumption
•  (cid:51)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84)(cid:3)(cid:83)(cid:80)(cid:65)(cid:67)(cid:69)(cid:3)(cid:83)(cid:65)(cid:86)(cid:73)(cid:78)(cid:71)(cid:83)(cid:3)(cid:8)(cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:65)(cid:66)(cid:76)(cid:73)(cid:78)(cid:71)(cid:9)
•  Massive cable weight reduction
•  Longer lifespan
•  Network security safety
• 
•  Substantial network expansion 

Integration of base-building and tenant requirements

S U S T A I N A B I L I T Y   O V E R V I E W

W A S T E 
M A N A G E M E N T

Bird is committed to being a responsible environmental steward, maintaining 
the  highest  standards  in  public  health  and  safety  in  an  effort  to  protect  the 
quality of the global environment, and reducing our carbon footprint

team  co-ordinates 

Our 
implementation  of  
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Programs  are  maintained,  revised,  and  updated  as  necessary  to  minimize 
negative environmental effects caused by company activities. 

the  development  and 

Green  measures  are  implemented  as  part  of  site  execution  plans.  The  
primary  focus  is  on  waste  avoidance,  with  clear  procedures  established 
for the reduction of waste, the re-use of materials, and the recycling of all  
possible  waste.  When  practicable,  preference  is  given  to  products  made 
of  recycled  and  renewable  materials,  organic  and  water-soluble  products, 
and environmentally-friendly products that have a minimal negative impact  
on the environment.

R E S U LT S   O F   O U R   W I N N I P E G   W A S T E   

M A N A G E M E N T   P I L O T   S T U D Y 1

(cid:36)(cid:73)(cid:86)(cid:69)(cid:82)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)(cid:87)(cid:65)(cid:83)(cid:84)(cid:69)(cid:3)(cid:70)(cid:82)(cid:79)(cid:77)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:76)(cid:65)(cid:78)(cid:68)(cid:108)(cid:76)(cid:76)(cid:3)(cid:73)(cid:83)(cid:3)(cid:65)(cid:3)
priority for Bird. Our aim is to save 
energy  and  reduce  the  amount  of 
greenhouse gases through recycling 
and  waste  diversion.  Indirectly,  this  
lowers  the  cost  for  each  project. 
(cid:51)(cid:79)(cid:77)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:79)(cid:85)(cid:82)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3) (cid:72)(cid:65)(cid:86)(cid:69)(cid:3) (cid:66)(cid:69)(cid:69)(cid:78)(cid:3)
tracking  waste  management  and  
remediation  efforts  at  both  their  
(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3) (cid:83)(cid:73)(cid:84)(cid:69)(cid:83)(cid:14)(cid:3) (cid:55)(cid:69)(cid:3) (cid:65)(cid:82)(cid:69)(cid:3)
proud  of  their  efforts  and  are  
currently  investigating  a  national 
waste management strategy.

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9

2,874 Mature Trees

Enough saved timber resources to produce 35,613,469 
sheets of newspaper

2,820,063 Litres of Water
Enough  fresh  water  to  meet  the  daily  fresh  water  needs  
of 37,601 people

2,250 Cubic Metres of Landfill Airspace

Enough airspace to meet the municipal waste disposal needs 
of 35,158 people per month

1(cid:55)(cid:136)(cid:152)(cid:152)(cid:136)(cid:171)(cid:105)(cid:125)(cid:3)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:171)(cid:192)(cid:156)(cid:141)(cid:105)(cid:86)(cid:204)(cid:3)(cid:195)(cid:136)(cid:204)(cid:105)(cid:195)(cid:93)(cid:3)(cid:211)(cid:228)(cid:163)(cid:199)(cid:135)(cid:211)(cid:228)(cid:211)(cid:228)

S U P P LY   C H A I N   
M A N A G E M E N T

Aligned, standardized practices are essential to driving a holistic  
sustainability strategy

The  Corporate  Supply  Chain  Management  (SCM)  team  is  developing  a  consistent  company-wide  strategy  for  supply 
chain and asset management, ensuring standardized SCM practices that align with our core values. 

GUIDING PRINCIPLES

Competitive, Ethical, 
and Sustainable

Value

Trust

(cid:37)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:89)

Complete all  
transactions in  
a fair, equitable, and  
accountable manner

Consider all elements 
of the value matrix 
when procuring goods 
and services

Build and maintain  
(cid:77)(cid:85)(cid:84)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3) 
relationships with our  
internal and external  
customers and vendors

Drive continuous 
improvement and  
standardization  
throughout SCM  
processes

STRATEGIC SOURCING

We endeavour to work with partners that share our commitment to: 

•  Conduct business in an ethical and transparent manner

•  Prioritize safety at all times

•  Report on labour practices

•  Prioritize sound labour practices

•  Stipulate that there is no forced or child labour at any point in the supply chain

•  Employ a diverse workforce

•  Seek opportunities to work with Indigenous businesses and communities

•  Promote, track, and report on environmental sustainability initiatives

•  Utilize local resources responsibly and sustainably

•  Minimize environmental impacts where we work

98%

CANADIAN SUPPLIERS 

55+

E M I S S I O N S   T R A C K I N G   AT   B I R D

(cid:22)(cid:32)(cid:12)(cid:22)(cid:20)(cid:13)(cid:32)(cid:34)(cid:49)(cid:45)(cid:135)(cid:34)(cid:55)(cid:32)(cid:13)(cid:12)(cid:3)
BUSINESSES SUPPORTED(cid:163)

our 

gas 

greenhouse 

An  essential  element  of  our  sustainability  strategy  is  
tracking 
Taking  
concrete  steps  towards  minimizing  our  impact  on  the  
environment  starts  with  assessing  our  carbon  footprint.  
We  are  measuring  and  reducing  idling  times  across  our 
(cid:109)(cid:69)(cid:69)(cid:84)(cid:12)(cid:3) (cid:84)(cid:82)(cid:65)(cid:67)(cid:75)(cid:73)(cid:78)(cid:71)(cid:3) (cid:65)(cid:73)(cid:82)(cid:3) (cid:84)(cid:82)(cid:65)(cid:86)(cid:69)(cid:76)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:73)(cid:78)(cid:71)(cid:3) (cid:77)(cid:73)(cid:76)(cid:69)(cid:83)(cid:3) (cid:84)(cid:82)(cid:65)(cid:86)(cid:69)(cid:76)(cid:76)(cid:69)(cid:68)(cid:3) 
where  possible.  The  team  is  committed  to  expediting  
the roll out of emissions tracking across the company. 

emissions. 

>$50M

PROCUREMENT SPEND
(cid:55)(cid:22)(cid:47)(cid:21)(cid:3)(cid:22)(cid:32)(cid:12)(cid:22)(cid:20)(cid:13)(cid:32)(cid:34)(cid:49)(cid:45)(cid:135)
OWNED BUSINESSES2

1,2Bird, 2020

L I V E
G R E E N

Providing  a  safe,  inclusive  workplace  that  supports  physical  and  
mental wellbeing, promotes professional development, and encourages  
positive community engagement

Our employees are the drivers of our longevity and success, and we are committed to investing in their development and 
wellbeing.  Bird  pursues  a  holistic  approach  to  employee  health  and  wellbeing,  striving  to  create  an  empathetic  culture 
(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:71)(cid:79)(cid:69)(cid:83)(cid:3)(cid:66)(cid:69)(cid:89)(cid:79)(cid:78)(cid:68)(cid:3)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:80)(cid:72)(cid:89)(cid:83)(cid:73)(cid:67)(cid:65)(cid:76)(cid:3)(cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:3)(cid:84)(cid:79)(cid:3)(cid:79)(cid:78)(cid:69)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:83)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:3)(cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:80)(cid:83)(cid:89)(cid:67)(cid:72)(cid:79)(cid:76)(cid:79)(cid:71)(cid:73)(cid:67)(cid:65)(cid:76)(cid:3)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:65)(cid:76)(cid:76)(cid:3) 
employees.  A  healthy  workplace  promotes  safety  and  overall  wellbeing,  and  the  essential  components  of  supporting  our 
people  include  advancing  their  professional  development,  strengthening  our  neighbourhoods,  and  creating  inclusive,  
respectful, and equitable working environments.

H E A LT H   A N D   S A F E T Y
Incorporating the latest innovations to ensure the safety of our people, the communities 
we work in, and the environment, has made Bird a recognized safety leader

responsibility 

Bird’s  approach  to  safety  continues  to  evolve 
in  
response  to  new  technologies,  tools,  strategies,  and 
challenges such as COVID-19. Bird promotes a culture of  
personal 
for  safety  wherein  safety  
considerations  are  interwoven  into  the  very  fabric  of 
operational  processes  and  every  person  at  every  level 
takes ownership for safety. From planning to execution, 
effective  communication,  documentation,  orientation, 
training,  and  ongoing  review  and  analysis  of  all  work 
activity are vigorously undertaken to ensure continuous 
improvement in all facets of operations.

Safety and production are viewed as complementary objectives, 
and both are pursued in order to achieve and sustain a positive 
and safe work environment. A team-based safety commitment 
is  essential  in  order  to  achieve  successful  business  outcomes 
and  ensure  that  high  quality  work  is  delivered  on  schedule. 
The creation of a collaborative and participative safety culture  
requires going beyond the technical aspects of safety such as 
(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:3) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71)(cid:12)(cid:3) (cid:72)(cid:65)(cid:90)(cid:65)(cid:82)(cid:68)(cid:3) (cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3)
with legislation. Person-based approaches must be integrated 
into the organizational safety strategy to promote an ingrained 
culture of personal responsibility for safety.

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1

0.02

+9.7M

0.70

LOST TIME INJURY 
FREQUENCY RATE(cid:163)

HOURS WORKED2

TOTAL RECORDABLE  
INCIDENT FREQUENCY3

1,2,3Bird and Stuart Olson combined, 2020.

At  Bird,  ensuring  that  all  work  on  our  sites  is  executed  
standards  begins  with  our  
to  exacting  quality 
commitment to creating and sustaining a culture in which  
(cid:84)(cid:72)(cid:69)(cid:3)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3)(cid:65)(cid:83)(cid:83)(cid:69)(cid:83)(cid:83)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:76)(cid:73)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:79)(cid:82)(cid:3)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:3)
of  hazards  and  risks  is  incorporated  into  every  aspect  of 
our  operations.  This  is  a  cornerstone  of  our  operational 
philosophy and approach. 

Ensuring  that  all  workers  leave  our  job  sites  every  day 
just  as  healthy  and  safe  as  when  they  arrived  is  a  shared  
commitment.  By  working  collaboratively  with  our  
employees  and  subcontractors,  we  minimize  risk  and  
create  the  appropriate  conditions  for  the  safe  execution 
of  construction  activity  -  on  time,  on  budget,  and  to  our 
client’s satisfaction. We believe this shared commitment is 
critical to our overall success. It is how we work.

ROBUST ORIENTATION AND TRAINING PROGRAMS 

ONGOING COMMUNICATION AND ENGAGEMENT 
ACTIVITIES

EMPLOYEE-LED SITE SAFETY PROGRAMS TO 
RECOGNIZE PEERS FOR SAFETY 
ACCOMPLISHMENTS OR MILESTONES

ALL WORKERS ARE ENCOURAGED TO ACTIVELY 
CONTRIBUTE TO OUR EFFORTS TO 
CONTINUOUSLY IMPROVE OUR SAFETY 
PROGRAM AND OVERALL COLLABORATION 
AND EFFECTIVENESS

100% OF WORKERS ON SITE MUST TAKE PART 
IN ORIENTATION AND TRAINING PROGRAMS

DAILY HAZARD ASSESSMENTS ON 
EVERY SITE EVERY DAY

At Bird, Personal Ownership is not just a vision or a philosophy. It is a daily routine 

practiced with discipline and rigor on all our job sites.

S U S T A I N A B I L I T Y   O V E R V I E W

C O V I D - 1 9   R E S P O N S E
On  March  11,  2020  the  World  Health  Organization  declared  COVID-19  a  global  pandemic.  Since  the 
declaration,  the  industry  has  faced  uncertainty  as  each  provincial  government  has  responded  by  implementing 
measures to address the public health threat. COVID-19 continues to be an important consideration and preventative 
safety  measures  remain  in  place  and  continue  to  vary  from  province  to  province  as  governments  respond  to 
(cid:109)(cid:85)(cid:67)(cid:84)(cid:85)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:73)(cid:78)(cid:3)(cid:67)(cid:65)(cid:83)(cid:69)(cid:3)(cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:3)(cid:68)(cid:85)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:79)(cid:70)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:80)(cid:65)(cid:78)(cid:68)(cid:69)(cid:77)(cid:73)(cid:67)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:65)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3)(cid:65)(cid:82)(cid:69)(cid:3)(cid:85)(cid:78)(cid:75)(cid:78)(cid:79)(cid:87)(cid:78)(cid:14)(cid:3)

The  health  and  safety  of  employees  is  paramount  and,  as  a  result  of  the  pandemic,  Bird  has  increased  health 
and  safety  initiatives  that  meet  or  exceed  guidance  from  applicable  public  health  authorities.  Bird  continues  to 
communicate  on  a  regular  basis  with  all  employees  and  has  highlighted  the  additional  support  offered  by  the 
provider  of  the  Employee  and  Family  Assistance  Program  to  support  employees  and  their  families  during 
(cid:84)(cid:72)(cid:73)(cid:83)(cid:3) (cid:84)(cid:73)(cid:77)(cid:69)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:3) (cid:37)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3) (cid:87)(cid:65)(cid:78)(cid:84)(cid:3) (cid:84)(cid:79)(cid:3) (cid:65)(cid:67)(cid:75)(cid:78)(cid:79)(cid:87)(cid:76)(cid:69)(cid:68)(cid:71)(cid:69)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:69)(cid:70)(cid:70)(cid:79)(cid:82)(cid:84)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:83)(cid:65)(cid:67)(cid:82)(cid:73)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3) (cid:84)(cid:72)(cid:65)(cid:84)(cid:3) (cid:79)(cid:85)(cid:82)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:3)
have  made  to  ensure  that  Bird 
its  project 
commitments through these unprecedented times.

is  operating  safely  and  effectively,  while  delivering  upon 

E M P L O Y E E   H E A LT H   A N D   S A F E T Y

• 

Initiated a pandemic response plan combined with a rigorous COVID-19 health and safety program that included 

safety inspections.

•  Best  practices  developed  and  implemented  for  managers  and  site  teams  -  self-assessment  tools,  enhanced 

cleaning  protocols  and  hygiene  measures,  physical  distancing  practices,  new  COVID-19  measure  audits,  and 

additional personal protective equipment requirements for proximity activities.

•  Strategies to reduce concentrations of site workers such as staggered start times, breaks, and lunch times have 

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3

been implemented on construction sites.

•  (cid:50)(cid:69)(cid:77)(cid:79)(cid:84)(cid:69)(cid:3)(cid:87)(cid:79)(cid:82)(cid:75)(cid:3)(cid:80)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:67)(cid:69)(cid:83)(cid:3)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3)(cid:66)(cid:89)(cid:3)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:79)(cid:76)(cid:79)(cid:71)(cid:89)(cid:3)(cid:72)(cid:65)(cid:86)(cid:69)(cid:3)(cid:66)(cid:69)(cid:69)(cid:78)(cid:3)(cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3)(cid:72)(cid:65)(cid:86)(cid:69)(cid:3)(cid:65)(cid:76)(cid:83)(cid:79)(cid:3)(cid:66)(cid:69)(cid:69)(cid:78)(cid:3)

adapted to ensure employee safety for those not working remotely.

•  Online COVID-19 information centres and remote work practices facilitated by information technology.

•  (cid:54)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:83)(cid:73)(cid:84)(cid:69)(cid:3) (cid:83)(cid:73)(cid:71)(cid:78)(cid:65)(cid:71)(cid:69)(cid:3) (cid:67)(cid:82)(cid:69)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:84)(cid:79)(cid:3) (cid:82)(cid:69)(cid:77)(cid:73)(cid:78)(cid:68)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:3) (cid:79)(cid:70)(cid:3) (cid:83)(cid:65)(cid:70)(cid:69)(cid:3) (cid:80)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:67)(cid:69)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:71)(cid:85)(cid:73)(cid:68)(cid:69)(cid:76)(cid:73)(cid:78)(cid:69)(cid:83)(cid:12)(cid:3) (cid:65)(cid:83)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:69)(cid:88)(cid:65)(cid:77)(cid:80)(cid:76)(cid:69)(cid:83)(cid:3)

below show.

EMPLOYEES: 
RETURNING TO THE WORKPLACE

AT HOME / BEFORE ARRIVING TO A BIRD OFFICE

 (cid:40) Complete the daily self-assessment with your district QR Code or URL before you enter 

a Bird Office

 (cid:40) Be aware – always self-monitor for symptoms and stay home if you are sick 
 (cid:40) Review provincial guidelines for physical distancing and hygiene applicable to whatever 

transit method you use to arrive at work (transit, car-pooling, personal vehicle)

 (cid:40) Wipe your IT hardware with a disinfectant prior to returning it to the office
 (cid:40) Ensure you bring all required technology back to the office (see checklist in your 

employee guide)

 (cid:40) Self Assessment Link:______________________________________________

AT THE OFFICE

QR
CODE

All employees must abide by the communicated hygiene and cleaning practices and maintain physical distancing during the workday.

HYGIENE

 (cid:40) Handwash or hand sanitize regularly throughout the day
 (cid:40) Handwash or hand sanitize before and after using shared equipment and surfaces (doors, 

kitchen amenities, printers, meeting rooms etc.) and upon re-entering the office

 (cid:40) Avoid touching your eyes, nose, or mouth throughout the day
 (cid:40) Avoid shaking hands and consider other greeting styles
 (cid:40) Cough or sneeze into your shoulder or elbow, not into your hands

2

m

 / 6ft

2m / 6ft

2

m

/

6

f

t

PHYSICAL DISTANCING

 (cid:40) Physical distancing should be maintained throughout the day (this 

includes in elevators, kitchen/coffee areas)

 (cid:40) Limit time spent in kitchens and wait if necessary to minimize number of 

individuals in the space at a time

 (cid:40) Work at a minimum of 2m apart if no physical barriers are present
 (cid:40) Limit the total number of people in meetings or gatherings while 

practicing physical distancing 

 (cid:40) Avoid non-essential face-to-face meetings and continue to use MS Teams 

2m / 6ft

or Lifesize as alternatives 

 (cid:40) Reduce meeting durations to avoid long periods of time sharing an 

enclosed space with others

CLEANING

 (cid:40) Property management has increased frequency of cleaning in common areas
 (cid:40) Disinfect  your workstation (keyboard, mouse, chair, desk) on a regular basis
 (cid:40) Use available sanitizing supplies in meeting rooms for remotes, surfaces and 

chairs prior to leaving the room 

PPE

 (cid:40) A mask or face covering is required to be worn during Proximity Activities 
(activities that cannot safely be performed while maintaining 2m or where 
maintaining physical distancing is difficult)

 (cid:40) Speak to a manager if you require PPE to complete a Proximity Activity
 (cid:40) Review guidelines to properly wear and dispose of used PPE
 (cid:40) Personal masks or face coverings can be worn in the office as desired by 

individuals

STAY UP TO DATE

2m / 6ft

2m / 6ft

2m / 6ft

 (cid:40) Review posters and company communications to stay up to date
 (cid:40) Reach out to Birdlistens@bird.ca or your office COVID-19 Response Team if you have any 

questions or concerns

 (cid:40) Provincial COVID-19 Guidelines Link:___________________________________________
 (cid:40) Local Office  Response Team Contact:__________________________________________

11,492

INSPECTIONS

ACROSS

150

SITES1

1 March-December 2020

PHYSICAL DISTANCING
AT BIRD 

COVID-19

Maintain physical distancing while working at all times

SAFETY POLICY

RESPECTFUL
WORKPLACE POLICY

OUR VISION

SAFETY AT HOME

FIRST AID
ASSESSMENT

HAZARD
ASSESSMENT

HAZARD
INSPECTION

JOINT HEALTH &
SAFETY COMMITTEE

JHSC MEETING
MINUTES

WELLNESS 

FIRST AIDER’S 

FIRE SAFETY PLAN

EMERGENCY
PHONE NUMBERS

MAPS TO HOSPITAL

NOTICE TO WORKERS
(ACT & REGULATION)

NOTICE TO WORKERS
(INJURIES)

PREVENTION POSTER

WHMIS

EMERGENCY
RESPONSE PLAN

OFFICE
EVACUATION MAP

INJURY MANAGEMENT

PHYSICAL
DISTANCING
2m / 6ft

2020

2m / 6ft

2m / 6ft

2m / 6ft

Outside on Site

Inside Site Trailers

If physical distancing cannot be maintained, speak to your 
supervisor and follow Proximity Activity Guidelines.

LESS THAN
2m / 6ft

MASK OR
FACE COVERING
REQUIRED

Keep
duration to
a minimum

When proximity activity is complete:

Sanitize Shared
Tools and Surfaces

Properly Dispose
of Used PPE

Wash Hands
Thoroughly
20Seconds

Jan. 2020 v.2

April 2020 v.1

 
 
I N D I G E N O U S 
R E L AT I O N S

Building relationships and supporting Indigenous 
communities through investment and engagement

inclusive, 

the  creation  of 

respectful,  and  
Bird  values 
equitable  working  environments.  We  are  committed 
to  
delivering  our  projects  in  a  socially  responsible  way  that  is  
mindful  of  human  rights  and  local  residents.  (cid:9)(cid:136)(cid:192)(cid:96)(cid:189)(cid:195)(cid:3) (cid:32)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:62)(cid:143)(cid:3) 
(cid:22)(cid:152)(cid:96)(cid:136)(cid:125)(cid:105)(cid:152)(cid:156)(cid:213)(cid:195)(cid:3)(cid:13)(cid:152)(cid:125)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:3)(cid:42)(cid:156)(cid:143)(cid:136)(cid:86)(cid:222)(cid:3)aims to ensure a consistent and 
culturally appropriate approach that respects the diversity of the 
Indigenous  landscape  in  Canada,  while  considering  the  Truth 
and  Reconciliation  Call  to  Action  #92.  It  is  built  on  four  pillars: 
building  respectful  relationships,  being  proactive  in  employing 
a  diverse  workforce,  seeking  to  increase  business  opportunities 
with Indigenous partners, and investing in community programs.  

“We continue to seek ways to authentically engage with Indigenous partners and the 
communities in which we work. This commitment starts within, and we are extending 
our  mandatory  internal  Indigenous  Cultural  Awareness  Training  to  all  Stuart  Olson  
employees  this  year.  We  will  continue  to  seek  opportunities  to  increase  our  
investments  in  Indigenous  communities,  and  build  upon  our  strategies  to  attract  
Indigenous talent to Bird.”

P a u l   P a s t i r i k ,   S V P   S t r a t e g i c   D e v e l o p m e n t

B U I L D I N G   R E S P E C T F U L   R E L A T I O N S H I P S   A N D   P R O M O T I N G   O P E N 
C O M M U N I C A T I O N S   A N D   C U L T U R A L   A W A R E N E S S

INDIGENOUS CULTURAL AWARENESS TRAINING PROGRAM

(cid:41)(cid:78)(cid:3)(cid:42)(cid:65)(cid:78)(cid:85)(cid:65)(cid:82)(cid:89)(cid:3)(cid:18)(cid:16)(cid:17)(cid:24)(cid:12)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:3)(cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:3)(cid:79)(cid:78)(cid:76)(cid:73)(cid:78)(cid:69)(cid:3)(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3)(cid:35)(cid:85)(cid:76)(cid:84)(cid:85)(cid:82)(cid:65)(cid:76)(cid:3)(cid:33)(cid:87)(cid:65)(cid:82)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:3)(cid:52)(cid:82)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:3)(cid:48)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)(cid:79)(cid:70)(cid:3)(cid:108)(cid:86)(cid:69)(cid:3)(cid:77)(cid:79)(cid:68)(cid:85)(cid:76)(cid:69)(cid:83)(cid:3)
in  cooperation  with  NVision,  which  is  an  Inuit-owned  company.  The  aim  is  to  educate  management  and  employees 
and enable them to deliver on Bird’s commitment to its Indigenous Relations Policy, strategies and plans. The Cultural  
Awareness  Training  builds  upon  Bird’s  Indigenous  Engagement  Policy  and  is  mandatory  for  all  staff.  This  action  is  the 
(cid:108)(cid:82)(cid:83)(cid:84)(cid:3) (cid:83)(cid:84)(cid:69)(cid:80)(cid:3) (cid:69)(cid:65)(cid:67)(cid:72)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:3) (cid:84)(cid:65)(cid:75)(cid:69)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:80)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:69)(cid:3) (cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69)(cid:3) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:72)(cid:73)(cid:80)(cid:83)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3) (cid:73)(cid:78)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:85)(cid:65)(cid:76)(cid:83)(cid:12)(cid:3) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) 
communities as the company continues to make investments in people, projects, and partnerships.

ORANGE SHIRT DAY 

On  September  30th  we  recognize  Orange  Shirt  Day  to  
honour the legacy of residential school survivors. By wearing an  
orange  shirt,  we  recognize  the  First  Nations,  Métis,  and  Inuit  
children who were removed from their homes at this time of year 
and  forced  to  attend  residential  schools.  We  acknowledge  the  
importance  of  supporting  education  and  awareness  of  the  
Canadian  history  of  Residential  Schools  and  the  impact  upon  
Indigenous communities for more than a century in Canada.

Pictured  right:  Bird  spent  some  time  with  our  partners  
Gitxaala  Nation,  the  British  Columbia  Regional  Carpenters  
Council (BRCC), and the Gitxaala/Bird Introduction to Carpentry 
Cohort in Prince Rupert, BC. discussing why we wear orange on 
September 30th.

B E I N G   P R O A C T I V E   I N   E M P L O Y I N G   A   Q U A L I F I E D   W O R K F O R C E 
T H A T   S T R I V E S   T O   B E   R E P R E S E N T A T I V E   O F   T H E   I N D I G E N O U S 
C O M M U N I T I E S   I N   W H I C H   B I R D   W O R K S

GITXAALA INTRODUCTION TO CARPENTRY PROGRAM 

Meaningful  community  relationships  are  important  to  Bird.  In  March  2020, 
Bird  entered  a  joint  venture  agreement  with  the  Gitxaala  Nation,  the  oldest  
(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:3) (cid:79)(cid:78)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:85)(cid:78)(cid:67)(cid:69)(cid:68)(cid:69)(cid:68)(cid:3) (cid:84)(cid:69)(cid:82)(cid:82)(cid:73)(cid:84)(cid:79)(cid:82)(cid:89)(cid:3) (cid:79)(cid:78)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:48)(cid:65)(cid:67)(cid:73)(cid:108)(cid:67)(cid:3) (cid:46)(cid:79)(cid:82)(cid:84)(cid:72)(cid:87)(cid:69)(cid:83)(cid:84)(cid:3)
coast of BC. Employing local Indigenous talent where we work is a pillar of the 
Bird  Indigenous  Engagement  Policy.  In  collaboration  with  the  community,  the  
Industry Training Authority (ITA), and the British Columbia Regional Carpenters  
Introduction  to  Carpentry  program  was  
Council 
designed  for  Gitxaala  Nation  members  to  start  a  career  as  a  carpenter  on  the  
LNG  Canada  Concrete  and  Paving  project.  The  course  included  a  practical  
training  component  and  learning  about  safety,  and  concluded  in  October.  
Successful graduates were offered carpenter apprenticeship positions with Bird. 
A second cohort will be starting in March 2021.

(BRCC),  an  eight-week 

FIRST NATIONS SAFETY WATCH TRAINING AND 
EMPLOYMENT INITIATIVE

Participants  in  this  initiative  started  with  a  week  of  offsite  training  to  receive 
all  the  mandatory  Safety  tickets,  followed  by  a  week  of  onsite  Safety  Watch  
training that included theoretical and practical elements. The onsite training was  
developed  internally  and  was  delivered  by  Stuart  Olson  trainers.  We  worked 
(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:76)(cid:89)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:76)(cid:79)(cid:67)(cid:65)(cid:76)(cid:3) (cid:38)(cid:73)(cid:82)(cid:83)(cid:84)(cid:3) (cid:46)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3) (cid:73)(cid:78)(cid:3) (cid:33)(cid:76)(cid:66)(cid:69)(cid:82)(cid:84)(cid:65)(cid:12)(cid:3) (cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:35)(cid:79)(cid:76)(cid:68)(cid:3) (cid:44)(cid:65)(cid:75)(cid:69)(cid:12)(cid:3) (cid:39)(cid:79)(cid:79)(cid:68)(cid:108)(cid:83)(cid:72) 
(cid:15)(cid:55)(cid:72)(cid:73)(cid:84)(cid:69)(cid:108)(cid:83)(cid:72)(cid:3) (cid:44)(cid:65)(cid:75)(cid:69)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:43)(cid:69)(cid:72)(cid:69)(cid:87)(cid:73)(cid:78)(cid:3) (cid:35)(cid:82)(cid:69)(cid:69)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:65)(cid:84)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:12)(cid:3) (cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:70)(cid:89)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:82)(cid:69)(cid:67)(cid:82)(cid:85)(cid:73)(cid:84)(cid:3)
100%  local  community  members.  Upon  completion  of  the  training,  they  were 
all  offered  employment  on  a  7-week  shutdown  project.  Once  the  project  was  
completed,  the  remaining  workers  were  offered  full-time  employment  on  the 
maintenance contract and signed up for apprenticeships.

P

A

G

E

2

5

S E E K I N G   T O   I N C R E A S E   B U S I N E S S   O P P O R T U N I T I E S   F O R   
I N D I G E N O U S   P A R T N E R S   A N D   B U I L D   C A P A C I T Y   I N   T H E   
I N D I G E N O U S   B U S I N E S S   C O M M U N I T Y

Bird  understands  that  contribution  to  economic  reconciliation  includes  employing  
Indigenous  Peoples,  supporting  development  opportunities,  purchasing 
from  
(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:80)(cid:65)(cid:82)(cid:84)(cid:78)(cid:69)(cid:82)(cid:83)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:79)(cid:78)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)(cid:77)(cid:85)(cid:84)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:69)(cid:78)(cid:71)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14)

Bird  is  proud  to  be  part  of  the  Canadian  Council  for  
Aboriginal Business’ Progressive Aboriginal Relations (PAR) 
(cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:14)(cid:3) (cid:41)(cid:84)(cid:3) (cid:67)(cid:79)(cid:78)(cid:108)(cid:82)(cid:77)(cid:83)(cid:3) (cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69)(cid:3) (cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3) (cid:73)(cid:78)(cid:3) 
Indigenous  relations  and  indicates  to  communities  that 
participating  companies  are  good  business  partners, 
a  great  place  to  work,  and  committed  to  prosperity  in  
(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:14)(cid:3) (cid:47)(cid:85)(cid:82)(cid:3) (cid:48)(cid:33)(cid:50)(cid:3) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:69)(cid:68)(cid:3)
to include all Bird  business units in the fall of 2018, and in 
(cid:84)(cid:72)(cid:69)(cid:3) (cid:83)(cid:85)(cid:77)(cid:77)(cid:69)(cid:82)(cid:3) (cid:79)(cid:70)(cid:3) (cid:18)(cid:16)(cid:18)(cid:16)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:87)(cid:65)(cid:83)(cid:3) (cid:82)(cid:69)(cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3) (cid:48)(cid:33)(cid:50)(cid:3)
Bronze level.

55+

(cid:22)(cid:32)(cid:12)(cid:22)(cid:20)(cid:13)(cid:32)(cid:34)(cid:49)(cid:45)(cid:135)(cid:34)(cid:55)(cid:32)(cid:13)(cid:12)(cid:3)
BUSINESSES SUPPORTED(cid:163)

>$50M

in 

Bird’s  membership 
the  Aboriginal  Procurement  
Champions  Group  provides  assurance  that  procurement  
opportunities  are  made  available  to  those  busineses  that 
(cid:65)(cid:82)(cid:69)(cid:3)(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:80)(cid:82)(cid:69)(cid:13)(cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3)(cid:65)(cid:83)(cid:3)(cid:66)(cid:69)(cid:73)(cid:78)(cid:71)(cid:3)(cid:65)(cid:84)(cid:3)(cid:76)(cid:69)(cid:65)(cid:83)(cid:84)(cid:3)(cid:21)(cid:17)(cid:3)(cid:80)(cid:69)(cid:82)(cid:3)(cid:67)(cid:69)(cid:78)(cid:84)(cid:3)
Indigenous owned and controlled. 

PROCUREMENT SPEND
(cid:55)(cid:22)(cid:47)(cid:21)(cid:3)(cid:22)(cid:32)(cid:12)(cid:22)(cid:20)(cid:13)(cid:32)(cid:34)(cid:49)(cid:45)(cid:135)
OWNED BUSINESSES2

1,2Bird, 2020

I N V E S T I N G   I N   C O M M U N I T Y   P R O G R A M S   T H A T   S U P P O R T   
I N D I G E N O U S   C U L T U R A L   A W A R E N E S S ,   S K I L L S   D E V E L O P M E N T ,   
A N D   B U S I N E S S   C A P A C I T Y 

SPOTLIGHT ON SCHOLARSHIPS 
Bird  is  dedicated  to  investing  in  the  development  of  young  people  in  Canada,  
particularly  young  people  from  Indigenous  communities.  A  number  of  scholarships  
are awarded annually. 
•  Bird  Heavy  Civil  awards  three  annual  scholarships 

Indigenous  
post-secondary  students.  This  scholarship  currently  has  gender  parity  and  targets  
students  enrolled  in  technical  or  trade  programs.  Some  of  the  recipients  have  also  
gained  valuable  work  experience  by  completing  work-terms  with  Bird.  Since  
2016, $18,000 has been awarded to students. 

full-time 

to 

•  An  annual  scholarship  to  students  enrolled  in  the  University  of  New  Brunswick’s 
Bachelor  of  Science  in  Engineering  Program,  with  preference  given  to  female  
Indigenous students. Since 2019, $3,000 has been awarded. 

•  A  scholarship  has  been  created  at  Langara  College  in  British  Columbia  in  support 
(cid:79)(cid:70)(cid:3) (cid:50)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:82)(cid:3) (cid:51)(cid:84)(cid:85)(cid:68)(cid:73)(cid:69)(cid:83)(cid:3) (cid:48)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:3) (cid:83)(cid:84)(cid:85)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3) (cid:68)(cid:69)(cid:77)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3) (cid:78)(cid:69)(cid:69)(cid:68)(cid:12)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:3) 
given to Indigenous students. Since starting in 2019, $4,000 has been awarded. 

•  The  Scott  Ferguson  Memorial  Scholarship  was  created  in  2019  to  assist  Indigenous 

post-secondary students in Alberta. To date, it has awarded $6,000 to students. 

>$30K
SCHOLARSHIP 
AWARDS 
SINCE 2016

C O M M U N I T Y
C O N N E C T I O N S

A passion for giving back

in  a  manner  that 

Bird  is  committed  to  contributing  to  the  communities  in  which  we  live, 
work,  and  build 
is  socially  responsible,  mindful  of 
human rights, and respectful of local residents. Through donations, scholarships, 
fundraising  activities,  and  volunteer  work,  Bird  employees  consistently 
demonstrate a passion for giving back. Bird supports national charities, health care 
foundation  initiatives,  food  and  clothing  banks,  community  festivals  and  events, 
youth and community sports, and much more.

CHARITABLE GIVING IN KITIMAT
Bird  has  a  number  of  active  projects 
in  the  Kitimat  region,  and  the 
project  teams  went  above  and  beyond  in  2020  raising  over  $50,000  for 
(cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:3)(cid:73)(cid:78)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:65)(cid:82)(cid:69)(cid:65)(cid:14)(cid:3)(cid:36)(cid:79)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:87)(cid:69)(cid:82)(cid:69)(cid:3)(cid:77)(cid:65)(cid:68)(cid:69)(cid:3)(cid:84)(cid:79)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:43)(cid:83)(cid:65)(cid:78)(cid:3)(cid:51)(cid:79)(cid:67)(cid:73)(cid:69)(cid:84)(cid:89)(cid:12)(cid:3)(cid:65)(cid:3)(cid:78)(cid:79)(cid:78)(cid:13)(cid:80)(cid:82)(cid:79)(cid:108)(cid:84)(cid:3)
in  crisis; 
organization 
the  Kitimat  Community 
Development  Centre,  which  supports 
families  and  children;  the  Tamitik 
Status  Of  Women,  which  concentrates  on  intervention  and  prevention  of 
violence  against  women,  youth,  and  children;  and  a  family  that  had  suffered 
a tragic loss. 

supports  people 

that 

QAJUQTURVIK COMMUNITY FOOD CENTRE 
RENOVATIONS
The  Qajuqturvik  Community  Food  Centre  in  Iqaluit  improves  access  to  good 
food  by  supporting  local  harvesting,  preparation,  education,  training,  and 
advocacy.  The  centre  serves  56,000  meals  every  year.  The  centre  needed  better 
functionality in their kitchen area and, while the Bird team was in Iqaluit, it was an 
opportune time to lend a hand to a community in which we work. 

By  changing  some  of  the  spaces  in  the  kitchen,  the  sink  was  rotated  to 
create  a  less  cramped  workspace  and  a  new  hand  wash  sink  was  installed, 
together with stainless steel wall panels in the dish area to protect the drywall. The 
(cid:74)(cid:65)(cid:78)(cid:73)(cid:84)(cid:79)(cid:82)(cid:3)(cid:67)(cid:76)(cid:79)(cid:83)(cid:69)(cid:84)(cid:3)(cid:87)(cid:65)(cid:83)(cid:3)(cid:82)(cid:69)(cid:76)(cid:79)(cid:67)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3)(cid:79)(cid:85)(cid:84)(cid:83)(cid:73)(cid:68)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:75)(cid:73)(cid:84)(cid:67)(cid:72)(cid:69)(cid:78)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3)(cid:83)(cid:80)(cid:65)(cid:67)(cid:69)(cid:3)(cid:87)(cid:65)(cid:83)(cid:3)(cid:69)(cid:78)(cid:76)(cid:65)(cid:82)(cid:71)(cid:69)(cid:68)(cid:14)(cid:3)
A  new  entrance  was  created,  and  some  washroom  renovations  were  done. 
(cid:52)(cid:72)(cid:69)(cid:3) (cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3) (cid:87)(cid:65)(cid:83)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:68)(cid:3) (cid:79)(cid:86)(cid:69)(cid:82)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:67)(cid:79)(cid:85)(cid:82)(cid:83)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:108)(cid:86)(cid:69)(cid:3) (cid:68)(cid:65)(cid:89)(cid:83)(cid:12)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:80)(cid:76)(cid:85)(cid:77)(cid:66)(cid:73)(cid:78)(cid:71)(cid:12)(cid:3)
electrical,  and  drywall  taping  work  involved  donated  by  the  trades  (Narwhal, 
KRT, and NCC respectively).

SUPPORTING SENIORS IN LONG-TERM CARE  
DURING COVID-19

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(cid:36)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:108)(cid:82)(cid:83)(cid:84)(cid:3) (cid:87)(cid:65)(cid:86)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:76)(cid:79)(cid:67)(cid:75)(cid:68)(cid:79)(cid:87)(cid:78)(cid:83)(cid:12)(cid:3) (cid:87)(cid:72)(cid:69)(cid:78)(cid:3) (cid:86)(cid:85)(cid:76)(cid:78)(cid:69)(cid:82)(cid:65)(cid:66)(cid:76)(cid:69)(cid:3) 
members  of  our  communities  were  not  allowed  to  have  
visitors,  the  Covid-19  Response  Team  created  and  
distributed a custom Community Activity Book to residents 
of seniors and long-term care facilities across the country. 
Today,  and  looking  beyond  COVID-19,  we  plan  to  share 
these  activity  books  with  our  clients  at  the  handover  of  
future  care  facilities  to  give  their  residents  a  warm  
welcome  home.  A  small  display  of  our  commitment  to  
clients  long  after  we  hand  over  a  building  -  we  remain 
neighbours, friends, and community members. 

 
 
 
H U M A N   C A P I TA L   
D E V E L O P M E N T

DIVERSITY AND INCLUSION
Bird  values  the  importance  of  creating  inclusive,  respectful,  and  equitable  working  environments.  
A diverse workplace has been shown to improve employee satisfaction, create a larger talent pool, and 
spark creativity and innovation. 

Bird  is  committed  to  promoting  employment  equity  by  providing  a  workplace  environment  that 
(cid:84)(cid:82)(cid:69)(cid:65)(cid:84)(cid:83)(cid:3) (cid:65)(cid:76)(cid:76)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:82)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:68)(cid:73)(cid:71)(cid:78)(cid:73)(cid:84)(cid:89)(cid:14)(cid:3) (cid:55)(cid:69)(cid:3) (cid:78)(cid:69)(cid:69)(cid:68)(cid:3) (cid:84)(cid:79)(cid:3) (cid:82)(cid:69)(cid:109)(cid:69)(cid:67)(cid:84)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:68)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:84)(cid:89)(cid:3) (cid:79)(cid:70)(cid:3) (cid:35)(cid:65)(cid:78)(cid:65)(cid:68)(cid:73)(cid:65)(cid:78)(cid:3) (cid:83)(cid:79)(cid:67)(cid:73)(cid:69)(cid:84)(cid:89)(cid:3) 
in  our  workforce,  and  believe  in  proactively  managing  the  special  measures  outlined  in  the  
Employment Equity Act. 

individuals,  
In  order  to  provide  equal  employment  and  advancement  opportunities  to  all 
(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3) (cid:68)(cid:69)(cid:67)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3) (cid:65)(cid:84)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:3) (cid:65)(cid:82)(cid:69)(cid:3) (cid:66)(cid:65)(cid:83)(cid:69)(cid:68)(cid:3) (cid:79)(cid:78)(cid:3) (cid:77)(cid:69)(cid:82)(cid:73)(cid:84)(cid:12)(cid:3) (cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:3) 
company does not discriminate in employment opportunities or practices on the basis of race or colour, 
national  or  ethnic  origin,  religion,  age,  family  or  marital  status,  gender  identity  or  expression,  genetic  
characteristics,  pardoned  conviction,  disability,  sexual  orientation,  or  any  other  prohibited  ground.  
(cid:55)(cid:72)(cid:69)(cid:78)(cid:3) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69)(cid:3) (cid:73)(cid:83)(cid:3) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:13)(cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:87)(cid:73)(cid:76)(cid:76)(cid:3) (cid:71)(cid:73)(cid:86)(cid:69)(cid:3) (cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:3) (cid:84)(cid:79)(cid:3) (cid:69)(cid:81)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:3) (cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3) (cid:67)(cid:65)(cid:78)(cid:68)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:83)(cid:3) (cid:87)(cid:72)(cid:79)(cid:3) (cid:65)(cid:82)(cid:69)(cid:3)
members of the designated groups stated in the Employment Equity Act. 

A CULTURE OF LEARNING
At  Bird,  we  are  committed  to  an  open  and  transparent  learning  culture  that  promotes  continuous  
improvement and shared accountability. We believe that commitment to our employees’ success leads 
(cid:84)(cid:79)(cid:3)(cid:67)(cid:79)(cid:76)(cid:76)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:3)(cid:83)(cid:85)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:79)(cid:85)(cid:82)(cid:3)(cid:71)(cid:79)(cid:65)(cid:76)(cid:3)(cid:73)(cid:83)(cid:3)(cid:84)(cid:79)(cid:3)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:69)(cid:3)(cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)(cid:84)(cid:82)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:73)(cid:83)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:67)(cid:73)(cid:65)(cid:76)(cid:12)(cid:3)(cid:65)(cid:67)(cid:67)(cid:69)(cid:83)(cid:83)(cid:73)(cid:66)(cid:76)(cid:69)(cid:12)(cid:3)(cid:65)(cid:70)(cid:70)(cid:79)(cid:82)(cid:68)(cid:65)(cid:66)(cid:76)(cid:69)(cid:12)(cid:3)
and timely. 

Bird  encourages  all  employees  to  take  an  active  role  in  their  own  self-development  by  continually  
seeking to improve their skills and education. As a result, Bird offers tuition reimbursement to help share 
the cost of external, work-related educational programs. A variety of training materials, both on-demand 
and  scheduled,  are  provided  through  Bird’s  intranet  portal.  There  is  also  regular  peer-to-peer  training 
and  information  sharing,  such  as  the  weekly  “Quality  Lessons  Learned”  presentations  that  share  best 
practices from site situations. 

1,509

FULL-TIME 
STAFF1

28%

WOMEN2

+30HRS

TRAINING PER 
EMPLOYEE3

9,454

COURSES
AVAILABLE4

(cid:163)(cid:9)(cid:136)(cid:192)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)(cid:3)
(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:105)(cid:96)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:228)(cid:176)

2(cid:9)(cid:136)(cid:192)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)(cid:3)
(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:105)(cid:96)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:228)(cid:176)

3(cid:31)(cid:136)(cid:152)(cid:136)(cid:147)(cid:213)(cid:147)(cid:3)(cid:204)(cid:62)(cid:192)(cid:125)(cid:105)(cid:204)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:163)

4(cid:9)(cid:136)(cid:192)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)(cid:3)
(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:105)(cid:96)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:228)(cid:176)

PROFESSIONAL DEVELOPMENT SPOTLIGHT

INDUSTRIAL INSULATOR  
TRAINING PROGRAM

This  innovative  and  complementary  training  program 
was created as a jump start for exceptional candidates 
interested in the insulation trade. The 8-week program  
provides  students  with  the  skills  required  to  begin  
working  in  the  insulation  trade  immediately  and  will 
support  the  foundation  required  to  work  towards 
(cid:65)(cid:3) (cid:84)(cid:82)(cid:65)(cid:68)(cid:69)(cid:3) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14)(cid:3) (cid:53)(cid:80)(cid:79)(cid:78)(cid:3) (cid:71)(cid:82)(cid:65)(cid:68)(cid:85)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:70)(cid:89)(cid:73)(cid:78)(cid:71)(cid:3) 
students  are  hired  as  second  year  apprentices.  The 
program  was  designed  to  accommodate  both  sectors 
of the industrial insulator industry, offering training for 
the union and non-union sectors. 

launching  the  program,  26  students  have 
Since 
(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:68)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:84)(cid:82)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:3) (cid:108)(cid:82)(cid:83)(cid:84)(cid:3)
(cid:73)(cid:78)(cid:84)(cid:65)(cid:75)(cid:69)(cid:3) (cid:87)(cid:65)(cid:83)(cid:3) (cid:70)(cid:79)(cid:82)(cid:3)
the  non-union  sector,  in  partnership  with  Northern  
Institute  of  Technology  (NAIT),  in  Edmonton,  Alberta.  
The  second  session  was 
in  partnership  with  the  
Insulators  Local  110  Union  and  was  held  at  our  Fort  
(cid:73)(cid:78)(cid:3) (cid:38)(cid:79)(cid:82)(cid:84)(cid:3) (cid:45)(cid:67)(cid:45)(cid:85)(cid:82)(cid:82)(cid:65)(cid:89)(cid:3) 
(cid:45)(cid:67)(cid:45)(cid:85)(cid:82)(cid:82)(cid:65)(cid:89)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:14)(cid:3) (cid:47)(cid:85)(cid:82)(cid:3)
(cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:84)(cid:69)(cid:68)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:83)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:3) (cid:109)(cid:79)(cid:79)(cid:82)(cid:3) (cid:79)(cid:70)(cid:3) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82)(cid:3) (cid:78)(cid:69)(cid:87)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3) (cid:73)(cid:78)(cid:84)(cid:79)(cid:3) (cid:65)(cid:3)
classroom and made a portion of the shop available for 
hands-on learning. 

(cid:84)(cid:69)(cid:65)(cid:77)(cid:3)

We  are  committed  to  supporting  our  local  regions 
to  several  
and  also  offer  special  consideration 
demographics 
in  construction,  
including  women 
Indigenous  People,  recent  graduates,  and  apprentic-
es  currently  outside  of  the  insulation  trade  who  are  
seeking a career transition.

4.26% 
OF OUR APPRENCTICES AND 
JOURNEYPERSONS ARE WOMEN(cid:81)(cid:163)(cid:82)

(cid:81)(cid:163)(cid:82)(cid:3)(cid:42)(cid:192)(cid:105)(cid:135)(cid:147)(cid:105)(cid:192)(cid:125)(cid:105)(cid:192)(cid:3)(cid:220)(cid:136)(cid:204)(cid:133)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)

LEADERSHIP TRAINING SPOTLIGHT

is 

the 

invested 

in  developing 

leadership  
Bird 
potential  of  employees.  Taking  Flight,  a  mid-level  
management  program  started  in  2019,  builds  the  
leadership  capacity  of  staff  who  manage  people. 
The  Bird  Leadership  Academy  is  targeted  towards  
higher  level  managers  who  the  organization  feels  will 
become key leaders or who have expressed leadership  
aspirations.  Every  second  year,  25  candidates  are  
selected  from  across  the  country  to  participate  in  the 
intensive course. 

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leaders 

(cid:84)(cid:72)(cid:69)(cid:3) (cid:108)(cid:69)(cid:76)(cid:68)(cid:3)

The  Bird  Site  Management  Program 
(BSMP)  was 
(cid:69)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:69)(cid:68)(cid:3) (cid:73)(cid:78)(cid:3) (cid:18)(cid:16)(cid:17)(cid:21)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:73)(cid:83)(cid:3) (cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:67)(cid:65)(cid:76)(cid:76)(cid:89)(cid:3) (cid:84)(cid:65)(cid:73)(cid:76)(cid:79)(cid:82)(cid:69)(cid:68)(cid:3) (cid:84)(cid:79) 
in  providing  effective  
better  equip  site 
(cid:76)(cid:69)(cid:65)(cid:68)(cid:69)(cid:82)(cid:83)(cid:72)(cid:73)(cid:80)(cid:3) (cid:65)(cid:84)(cid:3)
(cid:73)(cid:78)(cid:68)(cid:85)(cid:83)(cid:84)(cid:82)(cid:89)(cid:3) 
(cid:76)(cid:69)(cid:86)(cid:69)(cid:76)(cid:3)
driven by constant and accelerating change. BSMP is a  
critical development program for our site staff and an  
excellent pportunity to increase engagement and drive 
commitment  to  their  own  and  the  company’s  future  
success.  The  platform  allows  for  the  imparting  of  key  
skills and knowledge by internal and external speakers,  
as  well  as  the  sharing  of  feedback  on  the  challenges  
faced  by  the  participants  in  the  course  of  their  jobs  
and how to overcome them. 

NATIONAL STRATEGY FOR   
SUPPORTING WOMEN IN TRADES

(cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:73)(cid:83)(cid:3) (cid:65)(cid:78)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3) (cid:172)(cid:35)(cid:72)(cid:65)(cid:77)(cid:80)(cid:73)(cid:79)(cid:78)(cid:20)(cid:35)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:12)(cid:3) (cid:83)(cid:73)(cid:71)(cid:78)(cid:73)(cid:78)(cid:71)(cid:3) (cid:79)(cid:78)(cid:3)
as  an  early  adopter  in  support  of  SWIT  –  a  National  
Strategy for Supporting Women in Trades released by 
the  Canadian  Apprenticeship  Forum.  The  aim  is  to 
increase  the  participation  and  retention  of  women  in 
skilled trades careers to 15 per cent by 2030.

Skilled  trades  are  an  essential  part  of  our  business, 
and  there  aren’t  enough  skilled  workers  in  Canada. 
As  a  company  with  a  large  range  of  trades  across  the  
country,  participation  in  this  initiative  represents  an  
opportunity to make a big difference. Women in trades 
are  a  key  underrepresented  group  that  bring  unique 
skills  to  these  professions  and  it  is  important  to  us  to 
improve the diversity of our team. 

As part of our campaign to attract, retain, and employ 
more women in the trades, Bird has pledged to: 
•  Hire and train more women to work in trades
•  Ensure a respectful and inclusive workplace 
•  Submit  annual  reports  outlining  the  impact  of 
our  efforts,  including  public  disclosure  of  the  
number of women apprentices and journeypersons 
in our organization

S TA K E H O L D E R
E N G A G E M E N T

Bird’s communication policy emphasizes transparency,  
inclusivity, and integrity

Bird  regularly  communicates  with  internal  and  external  stakeholders  on  a  range  of  issues,  endeavoring  to  
deliver  clear  and  informative  messages  about  the  company  and  its  operations.  Bird’s  communication  policy  
emphasizes  transparency,  inclusivity,  and  integrity,  in  keeping  with  the  company’s  core  values  and  mission  
statement.  Bird  is  continually  seeking  new  ways  to  engage  with  stakeholders,  utilizing  a  range  of  methods  and  
media to reach the widest possible audience.

HOW DO WE ENGAGE?

Employees
•  Regular communication from executive leadership
•  Monthly newsletter
•  SharePoint news portal
•  Social media communications
•  Employee meetings
•  Employee feedback surveys
•  Safety reports
•  Engagement events 
•  Service awards 
•  Annual performance reviews
• 
•  National internal conferences 

Learning and development opportunities

Clients
•  Client events and presentations
•  Client feedback surveys
•  Regular one-on-one meetings

Industry
•  Partnering agreements
Industry association participation
• 
•  Co-op programs and apprenticeships

Public and Community
•  Press releases
•  Website
•  Social media communications
•  Trade publications
•  Mainstream media channels
•  Ongoing engagement with Indigenous Peoples
•  Public consultation for projects
•  Volunteer initiatives
•  Sponsorship and participation in community events
•  Company  donations  to  charities  and  community 

groups
•  Tradeshows
•  Conferences
•  Community procurement sessions

Shareholders
•  Shareholder meetings
•  Annual general meetings
•  Shareholder reports
•  Press releases
•  Conference calls
• 

Investor relations conferences

95.7% increase
In total messages 
received via 
social media

94,876 
Total Audience

4,845,517 
Impressions

208,577 
Engagements

112,234
Post Link Clicks[1]

[1](cid:3)(cid:33)(cid:76)(cid:76)(cid:3)(cid:108)(cid:71)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3)(cid:79)(cid:78)(cid:3)(cid:84)(cid:72)(cid:73)(cid:83)(cid:3)(cid:80)(cid:65)(cid:71)(cid:69)(cid:3)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:3)(cid:84)(cid:79)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:77)(cid:66)(cid:73)(cid:78)(cid:69)(cid:68)(cid:3)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:77)(cid:69)(cid:68)(cid:73)(cid:65)(cid:3)(cid:67)(cid:72)(cid:65)(cid:78)(cid:78)(cid:69)(cid:76)(cid:83)(cid:3)(cid:70)(cid:79)(cid:82)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:51)(cid:84)(cid:85)(cid:65)(cid:82)(cid:84)(cid:3)(cid:47)(cid:76)(cid:83)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:3)(cid:18)(cid:16)(cid:18)(cid:16)(cid:3)

C O M M I T M E N T   T O 
G O V E R N A N C E

Cultivating a culture of honesty and accountability

Bird  endeavors  to  be  at  the  forefront  of  industry  efforts  to  be  responsible,  responsive,  and  
innovative  corporate  citizens.  A  strong  culture  of  ethical  conduct  is  central  to  good  governance 
at  Bird.  The  company  and  its  Board  are  committed  to  conducting  their  activities  in  accordance 
with the highest standards of business ethics. These standards are intended to provide guidance  
regarding  ethical  issues,  to  assist  in  recognizing  and  dealing  with  ethical  issues,  to  provide  
mechanisms to report unethical conduct, and to help foster a culture of honesty and accountability. 

R I S K   M A N A G E M E N T

Executing a robust Enterprise Risk Management strategy in support of  
strategic objectives

P

A

G

E

3

1

recognizes 

Bird 
is  an  
(cid:73)(cid:78)(cid:84)(cid:69)(cid:71)(cid:82)(cid:65)(cid:76)(cid:3) (cid:80)(cid:65)(cid:82)(cid:84)(cid:3) (cid:79)(cid:70)(cid:3) (cid:83)(cid:79)(cid:85)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69)(cid:3) (cid:71)(cid:79)(cid:86)(cid:69)(cid:82)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83)(cid:3) (cid:37)(cid:50)(cid:45)(cid:3) (cid:48)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:3) (cid:65)(cid:70)(cid:108)(cid:82)(cid:77)(cid:83)(cid:3) (cid:79)(cid:85)(cid:82)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3) (cid:84)(cid:79)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) 
management of risk as an important component to the delivery of the company’s strategic plan and sustainability.  

through  Enterprise  Risk  Management 

the  management  of 

(ERM) 

that 

risk 

The maintenance of a robust ERM framework ensures that:
•  Current and developing material risks that could impact the achievement of the company’s strategic plan or 
(cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:12)(cid:3)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:82)(cid:73)(cid:83)(cid:75)(cid:83)(cid:3)(cid:79)(cid:70)(cid:3)(cid:70)(cid:82)(cid:65)(cid:85)(cid:68)(cid:12)(cid:3)(cid:66)(cid:82)(cid:73)(cid:66)(cid:69)(cid:82)(cid:89)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:79)(cid:82)(cid:82)(cid:85)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:82)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:79)(cid:82)(cid:89)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:76)(cid:69)(cid:71)(cid:65)(cid:76)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3)(cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:108)(cid:67)(cid:3)(cid:84)(cid:79)(cid:3)
(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:7)(cid:83)(cid:3)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3)(cid:65)(cid:82)(cid:69)(cid:3)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:83)(cid:84)(cid:79)(cid:79)(cid:68)(cid:14)

•  Appropriate and effective risk management systems are maintained and used to manage risks.
•  Regular reviews are conducted to evaluate the effectiveness of the company’s ERM Systems.

C R I T I C A L   I N C I D E N T   R E S P O N S E   P L A N

•  (cid:37)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3)(cid:65)(cid:78)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:3)(cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:83)(cid:69)(cid:3)(cid:84)(cid:79)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3)(cid:83)(cid:73)(cid:84)(cid:69)(cid:3)(cid:67)(cid:82)(cid:73)(cid:84)(cid:73)(cid:67)(cid:65)(cid:76)(cid:3)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:14)
•  Functions in conjunction with the Emergency Response Plans in place on all Bird projects.
•  Outlines immediate steps to assess and secure the scene.
•  Provides  reporting  procedures,  information  management  and  media  relations,  and  mobilization  of  

additional resources.

•  Summarizes guidelines for investigations, documentation, and evidence collection.
•  Stipulates  the  development  of  mitigation  plans  for  appropriate  corrective  actions  and  mechanisms  for  

information sharing to ensure that lessons learned are appropriately communicated.

CODE OF ETHICS 
Bird  requires  that  all  employees,  direct  service  providers,  and  agents  of  the  company  observe  the  
highest  levels  of  personal  and  professional  ethics.  Ethical  behaviour  is  entrenched  in  our  vision,  
mission,  and  values  and  forms  a  core  component  of  our  company  and  employment  with  Bird.  Every  
employee agrees to abide by Bird’s Code of Ethics, which outlines the importance of honesty, fairness,  
(cid:65)(cid:78)(cid:68)(cid:3) (cid:82)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:14)(cid:3) (cid:41)(cid:83)(cid:83)(cid:85)(cid:69)(cid:83)(cid:3) (cid:83)(cid:85)(cid:67)(cid:72)(cid:3) (cid:65)(cid:83)(cid:3) (cid:67)(cid:79)(cid:78)(cid:109)(cid:73)(cid:67)(cid:84)(cid:83)(cid:3) (cid:79)(cid:70)(cid:3) (cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:12)(cid:3) (cid:72)(cid:65)(cid:78)(cid:68)(cid:76)(cid:73)(cid:78)(cid:71)(cid:3) (cid:67)(cid:79)(cid:78)(cid:108)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:3) (cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:82)(cid:85)(cid:76)(cid:69)(cid:83)(cid:3) (cid:65)(cid:66)(cid:79)(cid:85)(cid:84)(cid:3) 
insider information are all clearly addressed. 

100%

Employees agree  
to abide by the  
Code of Ethics

RESPECTFUL WORKPLACE POLICY 
Bird expects that all people are treated with respect and dignity and strives to provide a healthy and open work environment 
free from harassment and violence. The company prohibits discrimination based on race, colour, ancestry, place of origin, 
religious  beliefs,  gender  identity  or  expression,  genetic  characteristics,  age,  physical  disability,  mental  disability,  marital 
status, family status, source of income, or sexual orientation. All employees are informed of this policy in orientations, by 
training sessions, or through safety meetings, and agree to abide by the terms therein. Immediate and appropriate action 
must always be taken to report, intervene in, or deal with incidents of harassment. 

All employees have a responsibility to treat others in a professional manner free from abuse and  
harassment,  and  all  employees  are  encouraged  to  seek  out  assistance  when  needed  and  to  
report incidents of harassment. Under no circumstances shall a legitimate complaint be dismissed 
or  downplayed,  or  the  complainant  be  told  to  deal  with  it  personally.  Company  employees,  
contractors,  subcontractors,  visitors  and  clients  must  comply  with  this  policy.  Failure  to  do 
so  will  result  in  corrective  action  up  to  and  including  termination  of  employment  or  business  
relationship. Bird is committed to eliminating or controlling harassment as a hazard.

Ensuring a healthy 
work environment 
free from  
harassment and 
violence 

WHISTLEBLOWER POLICY
Bird  observes  high  standards  of  business,  professional,  and  personal  ethics  in  the  conduct  of  its 
duties  and  responsibilities.  We  aim  to  exceed  the  regulatory  requirements  regarding  accounting 
and  business  practices,  securities  laws,  internal  controls,  and  auditing  matters.  In  order  to  ensure 
that  Bird  maintains  its  ethical  ideals,  the  company  has  a  clear  Whistleblower  Policy  that  protects 
any  individual  who  reports  an  actual  or  potential  violation  or  suspected  violation  of  any  company 
requirements or standards. It is contrary to the values of Bird for anyone to retaliate or discriminate 
against any person who makes such a report. Anonymous reports can be made to an independent 
third-party that is available 24 hours per day, 365 days per year. All employees receive a copy of the 
Whistleblower Policy during the onboarding process, and are provided with the opportunity to ask 
questions about the policy.

Anonymous 
Hotline

24 HOURS
per day

365 DAYS
per year

S U S T A I N A B I L I T Y   O V E R V I E W

INFORMATION SECURITY AND CYBERSECURITY 
INFORMATION SECURITY AND CYBERSECURITY 
Bird  maintains  rigorous  protocols  to  protect  the  information  security  of  internal  and  
internal  and  external  
Bird  Construction  maintains  rigorous  protocols  to  protect  the 
external  stakeholders.  The  Information  Technology  team  works  diligently  to    secure  system 
stakeholders. The IT team works diligently to secure system and network resources, and protect the availability, integrity and 
(cid:65)(cid:78)(cid:68)(cid:3) (cid:78)(cid:69)(cid:84)(cid:87)(cid:79)(cid:82)(cid:75)(cid:3) (cid:82)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:80)(cid:82)(cid:79)(cid:84)(cid:69)(cid:67)(cid:84)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:65)(cid:86)(cid:65)(cid:73)(cid:76)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:12)(cid:3) (cid:73)(cid:78)(cid:84)(cid:69)(cid:71)(cid:82)(cid:73)(cid:84)(cid:89)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:78)(cid:108)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3) (cid:79)(cid:70)(cid:3) (cid:67)(cid:76)(cid:73)(cid:69)(cid:78)(cid:84)(cid:83)(cid:12)(cid:3)
(cid:67)(cid:79)(cid:78)(cid:108)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:67)(cid:76)(cid:73)(cid:69)(cid:78)(cid:84)(cid:83)(cid:12)(cid:3)(cid:80)(cid:65)(cid:82)(cid:84)(cid:78)(cid:69)(cid:82)(cid:83)(cid:12)(cid:3)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:3)(cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:83)(cid:84)(cid:13)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:12)(cid:3)(cid:82)(cid:73)(cid:83)(cid:75)(cid:13)(cid:66)(cid:65)(cid:83)(cid:69)(cid:68)(cid:3)(cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:65)(cid:67)(cid:72)(cid:14)(cid:3)
partners,  employees,  and  company  information  in  a  cost-effective,  risk-based  approach.  

Access-controlled 
secure rooms

information  security  of 

layers  of  security  such  as 
Bird  has  access-controlled  secure  rooms  with  multiple 
infrastructure,  
Bird  has  access-controlled  secure  rooms  with  multiple 
layers  of  security  such  as  
security  systems,  and  physical  reinforcements,  in  accordance  with  federal  government  regulations.  Used  primarily  for  
independent  infrastructure,  security  systems,  and  physical  reinforcements,  in  accordance  
government  contracts, 
including  defense  and  policing  projects,  strict  security  controls  are  observed,  such  as  
with  federal  government  regulations.  Used  primarily  for  government  contracts,  including  
security clearances for all staff working on the project.
defense  and  policing  projects,  strict  security  controls  are  observed,  such  as  security  
clearances for all staff working on the project.

Multiple layers  
of security 

independent 

P

A

G

E

3

3

ANTI-BRIBERY AND CORRUPTION POLICY
The  Anti-Bribery  and  Corruption  Policy  establishes  controls  and  procedures  to  
(cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:3) (cid:84)(cid:72)(cid:65)(cid:84)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:65)(cid:76)(cid:76)(cid:3) (cid:73)(cid:84)(cid:83)(cid:3) (cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:89)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:65)(cid:70)(cid:108)(cid:76)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:73)(cid:69)(cid:83)(cid:12)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:89)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:65)(cid:76)(cid:76)(cid:3) 
applicable  anti-bribery  and  corruption  legislation  and  regulations.  It  also  aims  to  ensure 
that the company conducts its business in an ethical and socially responsible manner. Bird 
strongly believes that bribery and corruption are morally and ethically wrong and are not 
and should not be a part of how we conduct our business. On this basis, it is imperative 
that all employees behave ethically in all business dealings and that they do not engage in 
(cid:65)(cid:78)(cid:89)(cid:3)(cid:84)(cid:89)(cid:80)(cid:69)(cid:3)(cid:79)(cid:70)(cid:3)(cid:67)(cid:79)(cid:82)(cid:82)(cid:85)(cid:80)(cid:84)(cid:3)(cid:66)(cid:69)(cid:72)(cid:65)(cid:86)(cid:73)(cid:79)(cid:85)(cid:82)(cid:3)(cid:8)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:66)(cid:82)(cid:73)(cid:66)(cid:69)(cid:82)(cid:89)(cid:3)(cid:79)(cid:82)(cid:3)(cid:65)(cid:84)(cid:84)(cid:69)(cid:77)(cid:80)(cid:84)(cid:69)(cid:68)(cid:3)(cid:66)(cid:82)(cid:73)(cid:66)(cid:69)(cid:82)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:65)(cid:78)(cid:89)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:65)(cid:84)(cid:3)(cid:65)(cid:78)(cid:89)(cid:3)
level of government). 

Independent 
third-party 
audit on a 
regular basis 

INSIDER TRADING AND BLACKOUT POLICY 
As  a  public  company  incorporated  under  the  Business  Corporations  Act  (Ontario),  Bird  
has  a  clear  policy  that  sets  out  guidelines  regarding  transactions  involving  its  securities  by  its  
(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:12)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:83)(cid:12)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:3) (cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:3) (cid:69)(cid:68)(cid:85)(cid:67)(cid:65)(cid:84)(cid:69)(cid:83)(cid:3) (cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) 
employees about their legal obligations with respect to insider trading, tipping, reporting, and 
other obligations and prohibitions relating to their trading and trading by their family members 
in the company’s securities. 

Clear
ethical
guidelines 

COMPETITION LAWS COMPLIANCE POLICY
Bird  recognizes  that  strong  compliance  policies  and  procedures  are  critical.  The  company  is 
committed to complying with all aspects of the Competition Act, Canada’s competition law. Bird 
(cid:108)(cid:82)(cid:77)(cid:76)(cid:89)(cid:3)(cid:66)(cid:69)(cid:76)(cid:73)(cid:69)(cid:86)(cid:69)(cid:83)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:82)(cid:86)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:79)(cid:70)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:84)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69)(cid:3)(cid:69)(cid:67)(cid:79)(cid:78)(cid:79)(cid:77)(cid:89)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:12)(cid:3)(cid:73)(cid:84)(cid:83)(cid:3)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:12)(cid:3)
its customers, and all Canadians.

This policy communicates the controls and procedures that ensure that Bird, its employees, and 
(cid:65)(cid:76)(cid:76)(cid:3)(cid:79)(cid:70)(cid:3)(cid:73)(cid:84)(cid:83)(cid:3)(cid:83)(cid:85)(cid:66)(cid:83)(cid:73)(cid:68)(cid:73)(cid:65)(cid:82)(cid:73)(cid:69)(cid:83)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:65)(cid:70)(cid:108)(cid:76)(cid:73)(cid:65)(cid:84)(cid:69)(cid:83)(cid:3)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:83)(cid:84)(cid:65)(cid:78)(cid:68)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:89)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:65)(cid:80)(cid:80)(cid:76)(cid:73)(cid:67)(cid:65)(cid:66)(cid:76)(cid:69)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:84)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:76)(cid:65)(cid:87)(cid:83)(cid:14)(cid:3)
Through this policy, employees are made aware that the potential impacts of non-compliance are 
material and could include substantial regulatory penalties and sanctions, and criminal charges 
against the company and individual employees.

DISCLOSURE POLICY

Bird  has  a  policy  and  an  established  set  of  procedures  for  the  public  disclosure  of  Material  
(cid:41)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:8)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:69)(cid:83)(cid:3) (cid:104)(cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:3) (cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:118)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:104)(cid:77)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:3) (cid:70)(cid:65)(cid:67)(cid:84)(cid:118)(cid:3) (cid:65)(cid:83)(cid:3) (cid:68)(cid:69)(cid:108)(cid:78)(cid:69)(cid:68)(cid:3) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:3) (cid:65)(cid:80)(cid:80)(cid:76)(cid:73)(cid:67)(cid:65)(cid:66)(cid:76)(cid:69)(cid:3) 
securities  legislation).  The  policy  ensures  that  Bird  provides  timely,  consistent,  fair,  and  
credible  public  disclosure  of  Material  Information,  in  compliance  with  all  legal  and  regulatory  
requirements, to keep shareholders informed and assist in maintaining market integrity.

The  Public  Disclosure  Sub-Committee  determines  what  constitutes  Material  Information  and  
authorizes  the  issuance  a  media  release  that  discloses  the  nature  and  substance  of  the  
(cid:45)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:13)(cid:41)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:3)(cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:3)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:3)(cid:69)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:80)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:45)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:3)(cid:41)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)
release  is  sent  to  the  Market  Surveillance  Section  of  the  TSX  prior  to  dissemination,  advises  
Market Surveillance of the proposed method of dissemination of the media release, and upon 
(cid:82)(cid:69)(cid:76)(cid:69)(cid:65)(cid:83)(cid:69)(cid:12)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:80)(cid:89)(cid:3)(cid:73)(cid:83)(cid:3)(cid:108)(cid:76)(cid:69)(cid:68)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:83)(cid:69)(cid:67)(cid:85)(cid:82)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:3)(cid:82)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:52)(cid:79)(cid:82)(cid:79)(cid:78)(cid:84)(cid:79)(cid:3)(cid:51)(cid:84)(cid:79)(cid:67)(cid:75)(cid:3)(cid:37)(cid:88)(cid:67)(cid:72)(cid:65)(cid:78)(cid:71)(cid:69)(cid:3)
(TSX)  through  SEDAR,  as  well  as  on  the  publicly  facing  Bird  website.  The  policy  outlines  the 
means for preventing the misuse or inadvertent disclosure of non-public Material Information, 
assigns  authorized  spokespersons,  and  provides  guidance  for  dealing  with  analysts,  investors, 
shareholders, the media, and the public. 

Legal and  
ethical conduct  
is in the best 
interests of the 
company and its 
employees 

Timely, consistent, 
fair, and credible 
public disclosure 
of material 
information 

S U S T A I N A B I L I T Y   O V E R V I E W

O V E R S I G H T

Robust independent oversight

As  a  public  company  whose  securities  are  traded  on  the  Toronto  Stock  Exchange,  the  company’s  Board  of  
Directors has adopted, as its approach to corporate governance, the guidelines set out in National Instrument 
58-101 - Disclosure of Corporate Governance Practices, National Instrument 52-110 – Audit Committees, and 
National Policy 58-201 – Corporate Governance Guidelines.

(cid:52)(cid:72)(cid:69)(cid:3)(cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:3)(cid:35)(cid:79)(cid:68)(cid:69)(cid:3)(cid:79)(cid:70)(cid:3)(cid:37)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)(cid:3)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:83)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83)(cid:3)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3)(cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:69)(cid:3)(cid:65)(cid:78)(cid:89)(cid:3)(cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:3)(cid:79)(cid:82)(cid:3)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:3)(cid:67)(cid:79)(cid:78)(cid:109)(cid:73)(cid:67)(cid:84)(cid:3)(cid:79)(cid:70)(cid:3)
interest to ensure independent judgment regarding Board discussions and decision making. In the event of any 
(cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:3)(cid:79)(cid:82)(cid:3)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:3)(cid:67)(cid:79)(cid:78)(cid:109)(cid:73)(cid:67)(cid:84)(cid:3)(cid:79)(cid:70)(cid:3)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:3)(cid:66)(cid:89)(cid:3)(cid:65)(cid:3)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:3)(cid:73)(cid:78)(cid:3)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:84)(cid:79)(cid:3)(cid:65)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)(cid:77)(cid:65)(cid:84)(cid:84)(cid:69)(cid:82)(cid:12)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:3)(cid:87)(cid:73)(cid:76)(cid:76)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:68)(cid:82)(cid:65)(cid:87)(cid:3)(cid:70)(cid:82)(cid:79)(cid:77)(cid:3)
the deliberations and not vote upon such matter. The Board and its committees have adopted governance best 
practices including:
•  (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:79)(cid:70)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:3) (cid:79)(cid:70)(cid:3) (cid:80)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3) (cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3) (cid:68)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:84)(cid:89)(cid:14)(cid:3) (cid:36)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:3) (cid:80)(cid:69)(cid:82)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:83)(cid:3) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:69)(cid:3) (cid:84)(cid:79)(cid:3) (cid:73)(cid:78)(cid:78)(cid:79)(cid:86)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)
and growth opportunities, and the Board believes that diversity may be achieved through a range of factors  
including gender diversity, diverse skills and experiences, regional diversity and industry diversity.

•  (cid:50)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:82)(cid:3)(cid:73)(cid:78)(cid:13)(cid:67)(cid:65)(cid:77)(cid:69)(cid:82)(cid:65)(cid:3)(cid:77)(cid:69)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:83)(cid:12)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:79)(cid:85)(cid:84)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:83)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:83)(cid:69)(cid:3)(cid:83)(cid:69)(cid:83)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:69)(cid:78)(cid:65)(cid:66)(cid:76)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)
(cid:65)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:68)(cid:73)(cid:83)(cid:67)(cid:85)(cid:83)(cid:83)(cid:3) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:83)(cid:3) (cid:73)(cid:78)(cid:3) (cid:65)(cid:3) (cid:67)(cid:65)(cid:78)(cid:68)(cid:73)(cid:68)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:3) (cid:77)(cid:65)(cid:78)(cid:78)(cid:69)(cid:82)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:79)(cid:85)(cid:84)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:73)(cid:78)(cid:109)(cid:85)(cid:69)(cid:78)(cid:67)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:83)(cid:69)(cid:78)(cid:73)(cid:79)(cid:82)(cid:3) 
(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14)(cid:3)(cid:52)(cid:79)(cid:3)(cid:77)(cid:65)(cid:75)(cid:69)(cid:3)(cid:83)(cid:85)(cid:82)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)(cid:70)(cid:85)(cid:78)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)(cid:72)(cid:65)(cid:83)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)
to retain and to meet with external consultants without the presence of management whenever the Board 
(cid:83)(cid:69)(cid:69)(cid:83)(cid:3)(cid:108)(cid:84)(cid:14)

•  Conducting  performance  evaluations  of  the  Board,  the  Audit  Committee,  the  Human  Resources,  Safety 
and Governance Committee (HRS&G), each of their chairs and individual directors on a regular basis. The 
chair of the Board and the chair of the HRS&G Committee also conducted informal discussions with each 
individual director.

(cid:34)(cid:73)(cid:82)(cid:68)(cid:7)(cid:83)(cid:3) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3) (cid:65)(cid:82)(cid:69)(cid:3)
auditing standards.

(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3) (cid:65)(cid:85)(cid:68)(cid:73)(cid:84)(cid:69)(cid:68)(cid:3)

(cid:73)(cid:78)(cid:3) (cid:65)(cid:67)(cid:67)(cid:79)(cid:82)(cid:68)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:35)(cid:65)(cid:78)(cid:65)(cid:68)(cid:73)(cid:65)(cid:78)(cid:3) 

P

A

G

E

3

5

90%

22%

>82%

100%

Independent 
Board Members

Women on
the Board1

Employees are
Shareholders2

Board Committee 
Chairs are Women

1 Non-executive Board members  
in 2020

2 Prior to joining forces with  
Stuart Olson

2020

MANAGEMENT’S DISCUSSION & ANALYSIS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

Management’s Discussion and Analysis  

TABLE OF CONTENTS 

TABLE OF CONTENTS .................................................................................................................................... 39 
EXECUTIVE SUMMARY .................................................................................................................................. 40 
NATURE OF THE BUSINESS .......................................................................................................................... 41 
2020 HIGHLIGHTS ........................................................................................................................................... 43 
COVID-19 AND COMPANY RESPONSE ........................................................................................................ 45 
ANNUAL RESULTS OF OPERATIONS .......................................................................................................... 46 
QUARTERLY RESULTS OF OPERATIONS ................................................................................................... 49 
KEY PERFORMANCE INDICATORS .............................................................................................................. 51 
OUTLOOK......................................................................................................................................................... 55 
CAPABILITY TO DELIVER RESULTS ............................................................................................................ 56 
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY ............................................................ 57 
CONTRACTUAL OBLIGATIONS ..................................................................................................................... 61 
FINANCIAL INSTRUMENTS ............................................................................................................................ 62 
DIVIDENDS ....................................................................................................................................................... 63 
OUTSTANDING COMMON SHARE DATA AND STOCK EXCHANGE LISTING .......................................... 63 
OFF BALANCE SHEET ARRANGEMENTS .................................................................................................... 63 
RELATED PARTY TRANSACTIONS .............................................................................................................. 64 
SUMMARY OF QUARTERLY RESULTS ........................................................................................................ 64 
ACCOUNTING POLICIES ................................................................................................................................ 65 
CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS ............................................................................. 66 
CONTROLS AND PROCEDURES ................................................................................................................... 68 
RISKS RELATING TO THE BUSINESS .......................................................................................................... 69 
TERMINOLOGY & NON-GAAP MEASURES .................................................................................................. 75 
FORWARD-LOOKING INFORMATION ........................................................................................................... 78 

The  following  Management’s  Discussion  and  Analysis  (“MD&A”)  of  Bird  Construction  Inc.’s  (“the  Company”  or 
“Bird”) financial condition and results of operations for the three and twelve months ended December 31, 2020, 
should  be  read  in  conjunction  with  the  December  31,  2020  consolidated  annual  financial  statements,  the 
December 31, 2019 consolidated annual financial statements, and the December 31, 2019 MD&A. This MD&A 
has  been  prepared  as  of  March  9,  2021.  Unless  otherwise  specified,  all  amounts  are  expressed  in  Canadian 
dollars. The information presented in this MD&A is presented in accordance with International Financial Reporting 
Standards (“IFRS”), unless otherwise noted.  

This discussion contains forward-looking information, which are subject to a variety of factors that could cause 
actual results to differ materially from those contemplated by this information. See “Forward-Looking Information”. 
Some  of  the  factors  that  could  cause  results  or  events  to  differ  from  current  expectations  include,  but  are  not 
limited to, the factors described under “Risks Relating to the Business” included in the Company’s most current 
Annual Information Form dated March 9, 2021. Additional information about the Company is available through the 
System  for  Electronic  Document  Analysis  and  Retrieval  (“SEDAR”)  at  www.sedar.com  and  on  the  Company’s 
website at www.bird.ca.  

Certain measures in this MD&A do not have any standardized meaning as prescribed by IFRS and, therefore, are 
considered non-GAAP measures. These non-GAAP measures are commonly used in the construction industry, 
and by management of Bird, as alternative methods for assessing operating results and to provide a consistent 
basis  of  comparison  between  periods.  Therefore,  the  non-GAAP  measures  in  this  MD&A  are  unlikely  to  be 
comparable  to  similar  measures  used  by  other  entities.  Non-GAAP  measures  include:  Adjusted  Earnings; 
Adjusted  Earnings  Per  Share;  Adjusted  EBITDA;  and  Adjusted  EBITDA  Margin.  Further  information  regarding 
these measures can be found in the “Terminology & Non-GAAP Measures” section of this MD&A. 

39 | 2020 Management Discussion and Analysis

2020 Management’s Discussion and Analysis

39

 
 
 
EXECUTIVE SUMMARY 

(in thousands of Canadian dollars, except per share amounts)

2020

2019

2018

Income Statement Data

Revenue
Net income (loss) 
Basic and diluted earnings (loss) per share

Adjusted Earnings (1)
Adjusted Earnings Per Share (1)

Adjusted EBITDA (1)
Adjusted EBITDA Margin (1)

Cash Flow Data
Net increase in cash and cash equivalents 
Cash flows from operations before changes in non-cash working capital (2)
Additions to property and equipment (3)
Cash dividends paid
Cash dividends declared per share

Balance Sheet Data
Total assets
Working capital
Loans and borrowings (current and non-current)
ROU Liabilities (current and non-current) (4)
Shareholders' equity

$ 1,504,432 $ 1,376,408 $ 1,381,784
(1,013)
(0.02)

36,103
0.80

9,484
0.22

41,579

0.92

81,937

5.5%

31,765

71,696

14,227
17,607
0.39

9,484

0.22

32,292

2.4%

21,763

30,201

14,431
16,582
0.39

(1,013)

(0.02)

10,914

0.8%

24,606

12,320

14,613
16,582
0.39

1,061,796
135,514
72,913

78,075
212,610

856,787
80,503
40,621

31,100
127,720

652,021
70,215
21,198

8,759
136,229

(1) Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures        
   and do not have standardized meanings under IFRS. See "Terminology and Non-GAAP Measures."                                            
(2) Refer to the consolidated statement of cash flows
(3) Includes computer software purchases classified as intangible assets
(4) IFRS 16 Leases  was adopted effective January 1, 2019 using the modified retrospective approach, 2018 figures have not     
   been restated.

40 | 2020 Management Discussion and Analysis

40

2020 Management’s Discussion and Analysis

      
        
       
          
          
         
      
        
       
          
          
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
          
          
          
    
    
    
      
      
      
      
      
      
      
        
    
    
    
                       
NATURE OF THE BUSINESS

range  of 
Bird  provides  a  comprehensive 
construction  services  from  new  construction  for 
industrial, commercial, and institutional markets; 
to  industrial  maintenance,  repair  and  operations 
(“MRO”)  services,  heavy  civil  construction  and 
contract  surface  mining;  as  well  as  vertical 
infrastructure  including,  electrical,  mechanical, 
and specialty trades.

PROJECT DELIVERY METHODS
In all sectors, Bird contracts with its 
clients using a combination of fixed 
price, unit price, design-build, 
alternative finance projects, public,
private, partnerships (“PPP”), cost 
reimbursable (such as cost plus), 
construction management, and 
integrated project delivery methods. 

OUR LOCATIONS
The Company 
operates from coast-
to-coast and services 
all of Canada’s major 
geographic markets.

MANAGING RISK
While Bird is capable of self-performing larger projects, particularly in the industrial market and MRO 
space, for many projects, the overall construction risk rests with Bird’s subcontractors. The scope of 
work of each subcontractor is generally defined by the same contract documents that form the basis 
of the Company’s agreements with its clients. The terms of the agreements between the Company 
and its clients are generally replicated in the agreements between the Company and its subcontractors. 
These “flow-down” provisions substantially mitigate the risk borne by the Company. Depending on the 
value  of  the  work,  the  Company  may  require  bonds  or other  forms  of  contract  security,  including 
enrolling our subcontractors in Bird’s subcontractor default insurance program, which should mitigate 
exposure  to  possible  additional  costs  should  a  subcontractor  not  be  able  to  meet  its  contractual 
obligations. Bird’s  primary  constraints  on  growth  are  the  ability  to  secure  new  work  at  reasonable 
margins and the availability of qualified professional staff who can be assigned to manage the projects.

INDUSTRIAL SECTOR
Within the industrial sector, Bird has significant experience executing large and complex projects for 
clients primarily operating in the oil and gas, liquefied natural gas (LNG), mining, renewables, water 
and  wastewater,  and  nuclear  sectors.  Bird  constructs  industrial  buildings  including  manufacturing, 
processing, distribution, and warehouse facilities, and performs civil construction operations including 
site  preparation,  concrete  foundations,  metal  and  modular  fabrication,  mechanical  process  work, 
underground piping and earthwork. 

These industrial service capabilities have been further enhanced through the recent joining of forces 
with Stuart Olson Inc. (“Stuart Olson”). The Company’s industrial self-perform capabilities now include 
insulation, metal siding and cladding, ductwork, asbestos abatement, mechanical, and electrical and 
instrumentation  abilities,  including  high  voltage  testing  and  commissioning,  as  well  as  power  line 
construction. These maintenance service abilities are augmented with civil services as well as facilities 
maintenance services, and the combined service offering opens the door to a wider range of clients 
including  those  in  the  LNG,  mining,  and  nuclear  sectors.  In  general,  Bird  has  gained  an  expanded 
industrial  general  contracting  business  and  more  noticeably  is  now  an  industrial  maintenance 
contractor with opportunities for additional maintenance clients in a broader geographical footprint.

41 | 2020 Management Discussion and Analysis

2020 Management’s Discussion and Analysis

41

  
INSTITUTIONAL & COMMERCIAL SECTOR
Within  the  institutional  sector,  Bird  constructs  and  renovates  hospitals,  post-secondary  education 
facilities,  K-12  schools,  recreation  facilities,  prisons,  courthouses,  government  buildings,  long  term 
care and  senior  housing,  as  well  as  environmental  facilities  that  include  water  and  wastewater 
treatment centres, composting facilities, and biosolids treatment and management facilities. Within the 
commercial  sector,  Bird's  operations  include  the  construction  and  renovation  of  office  buildings, 
shopping malls, big box stores, hotels, and selected mixed-use high-rise residential.   

The  Company  has also developed  expertise  in  the  construction  of  vertical  elements  and  overall 
management of transportation-related projects and will continue to enhance its abilities in this market.
Bird also selectively invests equity in PPP projects to support construction operations.

INNOVATIVE SOLUTIONS
Bird also provides innovative solutions within the Institutional and Commercial sectors.

MASS TIMBER
With an extensive resume of mass timber 
construction, including post-secondary 
education, recreation and seniors living 
facilities, Bird is a North American leader 
with the expertise, experience and supply 
chain knowledge to present an 
opportunity for greener buildings by using 
a renewable resource as a primary 
construction material.

CENTRE FOR BUILDING PERFORMANCE
Paving the way for the future of smart building 
technology and seamless construction delivery, 
the Centre for Building Performance provides 
smart building technologies and life cycle 
services, which enables the delivery of 
innovation, efficiency and exceptional value by 
design.

STACK MODULAR
The Company’s partnership with Stack Modular, a design-build structural steel modular manufacturer 
that  builds  across  the  USA  and  Canada,  is  an  innovative  solution  in  the  multi-family,  hospitality, 
resource, and student and senior housing sectors for buildings up to 40 storeys. The partnership is 
focused on helping clients leverage the advantages of combining conventional and modular methods 
of  construction,  enabling  time  and  cost  savings,  and  ensuring  delivery  of  high-quality,  local  code 
compliant modules with stakeholder assurance that projects will be executed successfully and safely.

COMMERCIAL SYSTEMS 
The  newly  acquired  commercial  systems  business  is  one  of  Canada’s  largest  electrical  and  data 
system  contractors.  Services  include  design,  build  and  installation  of  core  electrical  infrastructure, 
resulting  in  high-tech,  high-performance  buildings.  It  also provides  the  services  and  systems  that 
support  information  management,  building  systems  integration,  green  data  centres,  security,  risk 
management and lifecycle services, as well as ongoing maintenance and on-call service to customers.

42 | 2020 Management Discussion and Analysis

42

2020 Management’s Discussion and Analysis

2020 HIGHLIGHTS 

(cid:120)  The Company completed its acquisition of Stuart Olson on September 25, 2020 and welcomed the additional 
employees,  clients,  shareholders  and  all  other  stakeholders  to  this  dynamic  organization  and  new  leading 
construction  company.  The  business  combination  is  the  largest  and  most  transformative  transaction  in  the 
Company’s 100 year history. It creates additional opportunity for our people and our customers, and Bird is 
well-positioned  to  play  a  major  role  in  the  Canadian  construction  industry,  creating  long-term  value  for  all 
stakeholders for decades to come. 

(cid:120)  The COVID-19 pandemic has added uncertainty to the construction industry as each provincial government 
has responded with different measures to address the continuing and evolving threat to public health. Bird has 
seen delays in project tenders and awards from clients, and experienced reduced productivity on project sites 
as a result of increased safety protocols implemented during the pandemic. Throughout 2020, the Company 
experienced delays in smaller sized or short-term projects in locations such as Manitoba and Atlantic Canada. 
The health and safety of employees is paramount and, as a result of the pandemic, the Company has increased 
health  and  safety  initiatives  such  as  physical  distancing  and  added  additional  measures  to  normal  safety 
protocols.  During  the  early  stages  of  the  pandemic  in  2020,  the  Company  made  a  difficult  decision  and 
instituted mandatory wage  reductions to  its employees to preserve the financial  health of the  business and 
keep  it agile  through the  pandemic. With the Canada Emergency Wage  Subsidy (“CEWS”) enacted  by the 
federal government, the Company was ultimately able to restore and reimburse its employees for the reduced 
wages in 2020. The situation remains fluid; however, the Company responded to the challenges presented in 
2020 and is well-positioned to respond to fluctuating scenarios in the near term.  

(cid:120)  During the fourth quarter of 2020, the Company recorded net income of $20.5 million on construction revenue 
of $555.0 million compared with net income of $8.2 million on $420.6 million of construction revenue in 2019. 
Basic and diluted earnings per share in the fourth quarter of 2020 and 2019 was $0.39 and $0.19, respectively. 
The year-over-year increase in fourth quarter revenue is primarily attributable to the inclusion of Stuart Olson. 
The year-over-year increase in net income is a combination of the addition of Stuart Olson and the timing of 
applications for CEWS. The Company recognized a total pre-tax compensation  expense recovery of  $21.7 
million in the fourth quarter of 2020, of which approximately $11.6 million relates to the first nine months of 
2020 ($0.4 million first quarter 2020, $3.8 million second quarter 2020, and $7.4 million third quarter 2020). 
Although the timing of recording the CEWS benefit was a significant factor affecting fourth quarter net income, 
on  a  full  year  basis  CEWS  did  not  fully  offset  the  negative  impact  which  COVID-19  had  on  revenues  and 
margins. 

(cid:120)  Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2020 were $21.5 million and $0.41, 
respectively, compared with Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2019 
of  $8.2  million  and  $0.19,  respectively.  The  year-over-year  increase  in  fourth  quarter  Adjusted  Earnings  is 
reflective of the improvement in earnings attributable to the inclusion of Stuart Olson and the year to date catch 
up in the application for CEWS.  

(cid:120)  Adjusted  EBITDA and Adjusted EBITDA Margin  in the fourth quarter of  2020 were $40.0 million and 7.2%, 
respectively. Adjusted EBITDA increased $24.0 million from the Adjusted EBITDA of $16.0 million in the fourth 
quarter of 2019. Adjusted EBITDA Margin increased 340 basis points from the Adjusted EBITDA margin of 
3.8% recorded in the fourth quarter of 2019.  

(cid:120) 

In  2020,  the  Company  recorded  net  income  of  $36.1  million  on  construction  revenue  of  $1,504.4  million 
compared with a net income of $9.5 million on $1,376.4 million of construction revenue in 2019. Basic and 
diluted earnings per share in 2020 and 2019 were $0.80 and $0.22, respectively. There was an increase in 
revenue year-over-year due to the inclusion of fourth quarter revenue of Stuart Olson. Excluding the revenue 
contribution  from  Stuart  Olson,  the  Company  experienced  a  year-over-year  revenue  decline  in  the  second, 
third and fourth quarters of 2020 attributable to the COVID-19 pandemic. The year-over-year increase in net 
income is primarily attributable to the mix of the higher margin industrial work program and the acquisition of 
Stuart Olson. An additional significant factor contributing to the year-over-year improvement in net income was 
the Company's increased contract pursuit selectivity in its institutional and Public Private Partnership (“PPP”) 

43 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

43

 
 
 
 
 
 
 
 
 
 
business, targeting lower risk opportunities best aligned with execution capabilities. Thereby avoiding notable 
underperforming  contracts  which  resulted  in  headwinds  to  margins  and  income  in  recent  years.  2019  net 
income was negatively impacted by a PPP project that incurred additional cost due to design related scope 
growth and acceleration expenses. There were substantial changes to the scope of the project requested by 
the client that are in commercial negotiation. This PPP project achieved substantial performance in the first 
quarter of 2020. 

(cid:120)  Adjusted Earnings and Adjusted Earnings Per Share for fiscal 2020 were $41.6 million and $0.92, respectively, 
compared  with  $9.5  million  and  $0.22  respectively,  in  fiscal  2019.  The  year-over-year  increase  in  Adjusted 
Earnings was due to the same reasons noted above that increased net income 

(cid:120)  Adjusted EBITDA for fiscal 2020 was $81.9 million compared to $32.3 million in the comparable period in 2019. 
Adjusted EBITDA Margin in 2020 was 5.5% and increased 310 basis points from the 2.4% recorded in 2019. 
The year-over-year improvement was driven by an increase in gross profit due to the revenue mix, the inclusion 
of Stuart Olson fourth quarter earnings, and the previously described Company's increased contract pursuit 
selectivity, targeting lower risk opportunities best aligned with execution capabilities. 

(cid:120) 

(cid:120) 

 In  2020,  the  Company  secured  $1,643.8  million  of  new  contract  awards  and  change  orders  and  executed 
$1,504.4 million of construction revenues, and $995.7 million of Backlog was contributed at the acquisition date 
by recently acquired Stuart Olson. Backlog of $2,682.5 million at December 31, 2020 increased 73.4% from 
Backlog of $1,547.4 million at December 31, 2019. Included in Backlog is a $154.0 million design-build contract 
for the Nanaimo Correctional Centre (“NCC”) Replacement Project in Nanaimo, British Columbia. The NCC 
Replacement Project features modernized spaces for educational, vocational, and certified trades training in 
addition to rehabilitative and culturally responsive Indigenous programming. It also includes Vancouver Island’s 
first provincial custody capacity for women. Two local First Nations, Snuneymuxw and Snaw’Naw’As, will also 
have input into the design as well as job and contract opportunities during construction.  

In 2020, cash and cash equivalents increased $31.8 million, before the effects of foreign exchange, to $212.1 
million from $180.3 million at the end of 2019. The majority of the change in cash and equivalents during the 
period relate to changes in the non-cash net current asset/liability position which can fluctuate significantly in 
the normal course of business. Cash flows from operations generated cash of $128.9 million mainly due to 
changes in non-cash working capital, including a $75.1 million increase as a result of the substantial completion 
of an alternative finance project in the fourth quarter of 2020. Cash flows from investing activities used cash of 
$53.9 million mainly related to the purchase of Stuart Olson. Cash flows from financing activities used cash of 
$43.3 million mainly due to the net repayment of non-recourse project financing related to an alternative finance 
project offset by net credit facility draws and the share issuance related to the purchase of Stuart Olson.  

(cid:120)  The Board has declared an eligible dividend of $0.0325 per common share for each of March 2021 and April 

2021. 

(cid:120)  Subsequent to fiscal 2020 year-end, the Company announced that it has been awarded the following projects 

and contracts: 

o 

o 

A  five-year  contract  valued  in  excess  of  $550.0  million  to  provide  MRO  services  for  a  longstanding 
industrial  customer  in  Alberta.  Under  the  terms  of  the  multi-site,  multi-use  agreement,  the  Industrial 
Maintenance  team  will  deliver  a  multi-disciplined  offering  for  maintenance  services,  turnarounds  and 
sustaining capital construction projects, drawing on the full suite of services of both Stuart Olson and Bird. 
Estimated 2021 revenues will be recorded into Backlog in the first quarter of 2021; the remaining value of 
the contract was recorded in Pending Backlog. 

A contract was signed with Infrastructure Ontario for the design-build expansion at the Kenora Jail and 
the Thunder Bay Correctional Centre. The project will leverage the Company’s integrated conventional 
site  construction  and  innovative  modular  construction  solutions  through  Bird’s  valued  partnership  with 
Stack Modular. The Company’s teams in Manitoba and Ontario will bring together experience and local 
expertise, reaffirming Bird’s commitment to building meaningful partnerships with regional communities 
including engagement with local Indigenous communities. 

44 | 2020 Management Discussion and Analysis 

44

2020 Management’s Discussion and Analysis

 
 
 
 
 
 
 
 
 
 
 
COVID-19 AND COMPANY RESPONSE 

On March 11, 2020 the World Health Organization (“WHO”) declared COVID-19 a global pandemic (“COVID-19 
pandemic” or “the pandemic”). Since the declaration, the Canadian construction industry has faced uncertainty as 
each provincial government has responded by implementing measures to address the public health threat. As this 
report is released, we are approaching the one-year anniversary since the pandemic began, and COVID-19 along 
with the variants of the virus that have emerged continues to be an important consideration; preventative safety 
measures remain in place and continue to vary from province to province as governments respond to fluctuations 
in  case  numbers.  The  duration  of  the  pandemic  and  the  associated  impact  to  future  financial  and  operational 
measures are unknown. As a result, the corresponding impacts to key variables including, our workforce, supply 
chain,  project  pursuit  and  awards  cycle,  and  project  site  measures  remain  uncertain.  The  situation  remains 
extremely fluid; however, the Company responded to the challenges presented in 2020 and is well positioned to 
continue responding to fluctuating scenarios in the year ahead. 

The health and safety of employees is paramount and, as a result of the pandemic, the Company increased health 
and  safety  initiatives  to  meet  or  exceed  guidance  from  applicable  public  health  authorities.  The  Company’s 
COVID-19 response plan includes: 

(cid:120)  Best practices for both office and field employees and managers. 
(cid:120)  Self-assessment tools and new COVID-19 measure audits. 
(cid:120)  Enhanced cleaning protocols and hygiene measures and physical distancing practices. 
(cid:120)  Proximity  activity  hazard  management  process, 

including  additional  personal  protective  equipment 

requirements, such as face coverings, mandated for specific circumstances both in offices and in the field. 
(cid:120)  Strategies to reduce concentrations of site workers such as staggered start times, breaks, and  lunch times 
have been implemented on construction sites. Online COVID-19 information centres have also been created 
for  employees  and  managers  to  ensure  all  team  members  are  kept  informed  as  the  situation  continues  to 
evolve. 

(cid:120)  Remote  work  practices  facilitated  by  information  technology  have  been  implemented  and  offices  have  also 

been adapted to ensure employee safety for those not working remotely.  

(cid:120)  The  Company  continues  to  communicate  on  a  regular  basis  with  all  employees  and  has  highlighted  the 
additional support offered by the provider of the Employee and Family Assistance Program (“EFAP”) to support 
employees and their families during this time. 

Stuart  Olson  has  exercised  similar  rigor  in  safety  procedures  both  in  the  field  and  the  office.  Moving  forward 
together, best practices will continue to be upheld and consistently applied between the two companies, while 
remaining in compliance with all provincial requirements.  

At the onset of the pandemic, Bird took decisive measures to mitigate the uncertainty the pandemic presented.  
As such, the Company instituted a broad-based wage rollback starting mid-April through the end of May 2020 
applicable  to  the  Directors,  executives  and  non-project  related  employees.    Project-related  employees  were 
exempted from the wage rollback.  The intent of the rollback was to avoid layoffs, where possible, thereby retaining 
its  employees  while  ensuring  its  operations  continued,  its  clients’  needs  were  satisfied,  and  the  Company 
remained financially healthy.  

Construction was generally considered an essential service by most provincial governments and as a result of the 
assistance of the federal government through the CEWS program, Bird reinstated wages in full as of June 1, 2020 
and implemented a “make-whole” provision in July to ensure its employees were fully reimbursed for their foregone 
remuneration. The Company generally maintained employment levels throughout the year with a few exceptions 
where some temporary layoffs were implemented on projects that were temporarily slowed down or suspended 
by  the  client  or  by  a  provincial  government.    Additionally,  the  Company  reduced  discretionary  spending  and 
deferred capital expenditures where possible out of an abundance of caution. All these efforts contributed to a 
strengthened financial position to withstand potential prolonged impacts of COVID-19.  

45 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

45

 
 
 
 
 
 
For  fiscal  full-year  2020,  management  estimates  that  the  business  experienced  a  reduction  in  revenues  of 
approximately $175 million with an associated decrease in profitability, as a direct result of the pandemic. This 
impact can be primarily attributed to delays in the conversion of some projects from Pending Backlog to Backlog, 
delays in project tenders and awards and was compounded by reduced productivity on project sites.  

The  Company,  its  executives  and  Directors  want  to  acknowledge  the  continued  efforts  and  sacrifices  that  our 
employees have made to ensure that the Company continues operating safely and effectively, while delivering 
upon  its  project  commitments  through  these  unprecedented  times.    Furthermore,  given  Bird  employees’ 
unwavering  dedication  to  clients  and  their  projects  during  these  unprecedented  times,  the  Board  of  Directors 
recently approved merit and promotional increases for the upcoming year.    

ANNUAL RESULTS OF OPERATIONS 

Consolidated Statement of Income and Additional Financial Indicators
(in thousands of Canadian dollars except per share amounts and percentages)

Construction revenue
Costs of construction 
Gross profit

Income from equity accounted investments
General and administrative expenses
Income from operations

Finance income
Finance and other costs
Income before income taxes

Income tax expense

Net income for the period

Basic and diluted earnings per share

Adjusted Earnings(1)
Adjusted Earnings Per Share(1)

Adjusted EBITDA(1)
Adjusted EBITDA Margin(1)

For the year ended

2020

1,504,432
1,378,132
126,300

$

2019

1,376,408
1,305,458
70,950

% change
9.3%
5.6%
78.0%

7,792
(78,777)
55,315

1,511
(7,506)
49,320

13,217

36,103

0.80

41,579

0.92

$

$

$

$

2,693
(58,722)
14,921

2,596
(5,558)
11,959

2,475

9,484

0.22

9,484

0.22

81,937

$

32,292

5.5%

2.4%

189.3%
34.2%
270.7%

-41.8%
35.0%
312.4%

434.0%

280.7%

263.6%

338.4%

318.2%

153.7%

131.9%

$

$

$

$

$

$

(1) Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and do not 
have standardized meanings under IFRS. See "Terminology and Non-GAAP Measures."                                            

In fiscal 2020,  the Company recorded  net  income  of $36.1 million  on construction revenue  of $1,504.4 million 
compared with net income of $9.5 million on $1,376.4 million of construction revenue respectively in 2019. The 
year-over-year  increase  in  revenue  was  driven  by  higher  industrial  project  revenues,  partially  offset  by  lower 
revenues in commercial and institutional projects due to COVID-19 pandemic delays, as well as the contribution 
of  revenue  from  Stuart  Olson  in  2020.  Excluding  the  revenue  contribution  from  Stuart  Olson,  the  Company 
experienced a year-over-year revenue decline in the second, third and fourth quarters of 2020 attributable to the 
COVID-19  pandemic.  The  year-over-year  increase  in  net  income  is  reflective  of  the  mix  of  the  higher  margin 
industrial work program, in addition to less margin erosion on a challenging PPP project in 2019, numerous cost 
containment efforts in response to the pandemic, as well as the inclusion of Stuart Olson net income in the fourth 
quarter. In fiscal 2020, Company recognized a pre-tax recovery of compensation expense of $24.8 million related 
to the CEWS program. Although the timing of recording the CEWS benefit was a significant factor affecting fourth 

46 | 2020 Management Discussion and Analysis 

46

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quarter net income, on a full year basis CEWS did not fully offset the negative impact which COVID-19 had on 
revenues and margins.

The Company remains focused on investing in both people and technology and in diversifying its earnings base 
with a stronger margin profile. The mix of revenue in 2020 differs from that of 2019 as evidenced by the increase 
in the industrial work program relative to work performed in the institutional and commercial sectors. This trend is 
expected to continue into 2021. The institutional market sector contributed 37% of 2020 revenues (43% in 2019). 
The industrial market sector contributed 41% of 2020 revenues (39% in 2019). The retail and commercial sector 
contributed 22% of 2020 revenues (18% in 2019).

The Company’s 2020 annual gross profit of $126.3 million was $55.3 million higher than the $71.0 million recorded 
for 2019. Gross Profit Percentage in 2020 was 8.4%, an increase of 325 basis points from fiscal 2019 Gross Profit 
Percentage of 5.2%. The increase in gross profit is due to a higher-margin work program as revenue continues to 
shift from institutional and commercial projects to a more balanced work program including industrial, which has 
a higher gross profit profile, as well as the contribution of fourth quarter gross profit from Stuart Olson. Fiscal 2020 
gross profit includes a recovery of $21.2 million of compensation expense in costs of construction for the year 
ended  December  31,  2020,  under  the CEWS program,  increasing gross  profit. An  additional  significant  factor 
contributing  to  the  year-over-year  improvement  in  gross  profit was  the  Company's  increased  contract  pursuit 
selectivity  in  its  institutional  and  PPP  business,  targeting  lower  risk  opportunities  best  aligned  with  execution 
capabilities. Thereby avoiding notable underperforming contracts which resulted in headwinds to gross profit in 
recent years. 2019 gross profit was negatively impacted by a PPP project that incurred additional costs due to 
design-related scope growth and acceleration expenses. 

Income from equity accounted investments in 2020 was $7.8 million, compared with $2.7 million in same period 
of 2019. The primary driver of the year-over-year increase was net gains on sale of certain investments in equity 
accounted  entities  of  $3.1 million.  In  addition,  equity  income  increased  year-over-year  from  several  equity 
accounted investments across Canada.

For the year ended December 31, 2020, general and administrative expenses of $78.8 million (5.2% of revenue)
were $20.1 million higher than $58.7 million (4.3% of revenue) of general and administrative expenses in 2019. 
During  the year,  the  Company  had  higher  professional  fees  of  $9.6 million  (including  $7.2 million  related  to 
acquisition and integration activities associated with the Stuart Olson transaction) and higher compensation costs
of $8.9 million (net of $3.6 million related to cost recoveries from the CEWS program). Also driving the increase 
were higher amortization and depreciation of $4.8 million, higher foreign exchange costs of $0.5 million and higher 
technology related costs of $1.2 million. Partially offsetting the increases in expense were reduced PPP pursuit 
costs of $2.2 million, and lower travel, conference and other discretionary spend of $1.6 million as the Company 
managed this spending throughout the COVID-19 pandemic. In addition, gains on sale of property and equipment 
were $1.2 million higher than the amounts recorded in the prior year.

47 | 2020 Management Discussion and Analysis

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47

Finance  income  of  $1.5  million  in  2020  was  lower  than  the  $2.6  million  recorded  in  the  same  period  of  2019. 
Interest income earned on deposits has been impacted by lower variable interest rates in 2020. 

Finance  and  other  costs  of  $7.5  million  were  $1.9  million  higher  than  the  $5.6  million  reported  in  2019.  The 
increase was due to $1.0 million higher interest expense on loans and borrowings and right of use liabilities,$1.5 
million  higher  interest  on  non-recourse  project  financing,  partially  offset  by  the  year-over-year  gain  on  the 
Company’s interest rate swaps as the mark-to-market loss was unwound at the end of the swap related to non-
recourse project financing, and a reduction of other interest expenses of $0.6 million.   

In 2020, income tax expense was $13.2 million, compared to $2.5 million recorded in 2019. The increase in income 
tax expense was in-line with the year-over-year improvement in income before taxes. In addition, certain expenses 
attributable to the acquisition of Stuart Olson are non-deductible for tax purposes, which increased the effective 
tax rate. 

Adjusted Earnings and Adjusted Earnings Per Share for fiscal 2020 were $41.6 million and $0.92, respectively, 
compared with $9.5 million and $0.22 respectively, in fiscal 2019. The year-over-year increase in net income is 
reflective of the improvement in earnings attributable to the mix of the higher margin industrial work program and 
increased costs on a certain contract incurred in 2019 that did not recur in 2020, the inclusion of fourth quarter 
earnings from Stuart Olson, and the previously discussed pre-tax compensation cost recovery of $24.8 million 
related to CEWS. 

Adjusted EBITDA for fiscal 2020 was $81.9 million compared to $32.3 million in the comparable period in 2019. 
Adjusted  EBITDA Margin in 2020 was 5.5% and increased 310 basis points from the 2019 EBITDA margin of 
2.4%. The year-over-year improvement was driven by an increase in gross profit due to the revenue mix, and the 
previously described PPP project, the Adjusted EBITDA contribution of Stuart Olson, and the previously discussed 
pre-tax compensation cost recovery of $24.8 million related to CEWS. 

48 | 2020 Management Discussion and Analysis 

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QUARTERLY RESULTS OF OPERATIONS 

Consolidated Statement of Income and Additional Financial Indicators
(in thousands of Canadian dollars except per share amounts and percentages)

Construction revenue
Costs of construction 
Gross profit

Income from equity accounted investments
General and administrative expenses
Income from operations

Finance income
Finance and other costs
Income before income taxes

Income tax expense

Net income for the period

Basic and diluted earnings per share

Adjusted Earnings(1)
Adjusted Earnings Per Share(1)

Adjusted EBITDA(1)
Adjusted EBITDA Margin(1)

For the three months ended

2020
554,960
493,426
61,534

$

(189)
(32,822)
28,523

178
(1,731)
26,970

6,436

20,534

0.39

21,526

0.41

$

$

$

$

2019
420,612
394,228
26,384

739
(16,302)
10,821

769
(1,553)
10,037

1,870

8,167

0.19

8,167

0.19

40,011

$

16,012

7.2%

3.8%

$

$

$

$

$

$

% change
31.9%
25.2%
133.2%

-125.6%
101.3%
163.6%

-76.9%
11.5%
168.7%

244.2%

151.4%

105.3%

163.6%

115.8%

149.9%

89.2%

(1) Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and do not have 
standardized meanings under IFRS. See "Terminology and Non-GAAP Measures."                                            

During the fourth quarter of 2020, the Company recorded net income of $20.5 million on construction revenue of 
$555.0 million compared with net income of $8.2 million on $420.6 million of construction revenue in 2019. The 
year-over-year increase of revenue in the fourth quarter of 31.9% was primarily driven by the inclusion of $237.6 
million of fourth quarter revenue from Stuart Olson in 2020. The increase in fourth quarter revenue was partially 
offset by lower revenues in all work programs of legacy Bird due to delays in securing new projects and projects 
that have been temporarily delayed by clients as a result of the COVID-19 pandemic. The year-over-year increase 
in  fourth  quarter  net  income  is  primarily  attributable  to  the  inclusion  of  Stuart  Olson  and  a  pre-tax  recovery  of 
compensation costs of $21.7 million related to CEWS in the fourth quarter of 2020, of which approximately $11.6 
million relates to the first nine months of 2020 ($0.4 million first quarter 2020, $3.8 million second quarter 2020, 
and  $7.4  million  third  quarter  2020).  This  was  partially  offset  by  lower  fourth  quarter  earnings  in  Bird’s  work 
program due to the effects of the COVID-19 pandemic and the stage of completion in certain industrial projects in 
the  fourth  quarter  year-over-year.    Although  the  timing  of  recording  the  CEWS  benefit  was  a  significant  factor 
affecting  fourth  quarter  net  income,  on  a  full  year  basis  CEWS  did  not  fully  offset  the  negative  impact  which 
COVID-19 had on revenues and margins. 

The Company’s 2020 fourth quarter gross profit of $61.5 million was $35.1 million higher than the $26.4 million 
recorded a year ago. Gross Profit Percentage in the fourth quarter of 2020 was 11.1%, an increase of 482 basis 
points  from  6.3%  recorded  a  year  ago.  The  increase  in  gross  profit  is  due  to  the  recovery  of  $18.7  million  of 
compensation expense in costs of construction under the CEWS program and the inclusion of Stuart Olson results. 
This was partially offset by lower fourth quarter gross profit in Bird’s work program due to project delays as a result 
of the COVID-19 pandemic and the stage of completion in certain industrial projects in the fourth quarter year-
over-year.  

49 | 2020 Management Discussion and Analysis 

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49

 
 
 
 
 
        
        
        
        
          
          
              
               
         
         
          
          
               
               
           
           
          
          
            
            
          
            
              
              
          
            
              
              
          
          
 
The loss from equity accounted investments in the fourth quarter of 2020 was $0.2 million, compared with $0.7
million of income in same period of 2019. The loss in the fourth quarter is primarily due to an equity loss on a 
project in Ontario.

In the fourth quarter of 2020, general and administrative expenses of $32.8 million (5.9% of revenue) were $16.5 
million higher than $16.3 million (3.9% of revenue) in the corresponding period a year ago. The primary driver for 
the increase is the addition of Stuart Olson results in the fourth quarter of 2020. The Company incurred higher 
professional fees of $3.4 million (including $2.1 million related to acquisition and integration activities associated 
with the Stuart Olson transaction) and higher compensation costs of $9.5 million (net of $3.0 million related to cost 
recoveries  from  the  CEWS  program).  Also  driving  the  year-over-year  increase  were $4.7  million of  higher 
amortization and depreciation costs and higher technology costs of $0.8 million. Partially offsetting the increase 
in expenses were $1.6 million lower pursuit costs, travel and other discretionary costs of $0.2 million, and lower
foreign exchange expense of $0.1 million than the amounts recorded a year ago.

Finance income of $0.2 million in the fourth quarter of 2020 was lower than the $0.8 million recorded in the same 
period of 2019. Interest earned on average cash balances during the quarter was lower due to a reduction in cash 
held for joint  operations as projects near completion compared to the  prior year, combined  with  lower interest 
rates.

Finance and other costs of $1.7 million were comparable to the $1.6 million reported in the fourth quarter of 2019.
In the fourth quarter, the $0.7 million higher interest expense on loans and borrowings and right of use liabilities
was partially offset by $0.5 million lower interest on non-recourse project financing due to the repayment of the 
loan facility in the fourth quarter of 2020 as the Ontario Provincial Police (“OPP”) Modernization Phase 2 project
reached substantial completion.  

In the fourth quarter of 2020, income tax expense was $6.4 million, compared to $1.9 million recorded in the fourth
quarter of 2019. The increase in income tax expense was in-line with the improvement in year-over-year income 
before taxes. In addition, certain expenses attributable to the acquisition of Stuart Olson are non-deductible for 
tax purposes, which increased the effective tax rate.

Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2020 were $21.5 million and $0.41, 
respectively, compared with Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2019 of 
$8.2 million and $0.19, respectively. The year-over-year increase in fourth quarter Adjusted Earnings is reflective 
of the improvement in earnings due to compensation cost recoveries under the CEWS program and the inclusion 
of Stuart Olson’s fourth quarter results.

50 | 2020 Management Discussion and Analysis

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Adjusted  EBITDA  and  Adjusted  EBITDA  Margin  in  the  fourth  quarter  of  2020  were  $40.0 million  and  7.2%, 
respectively. Adjusted EBITDA increased $24.0 million from the Adjusted EBITDA of $16.0 million in the fourth 
quarter of 2019. Adjusted EBITDA Margin increased 340 basis points from the Adjusted EBITDA margin of 3.8% 
recorded  in  the  fourth  quarter  of  2019.  The  fourth  quarter  of  2020  includes  $21.7  million  related  to  CEWS. In 
addition, fourth quarter 2020 includes Adjusted EBITDA from Stuart Olson.

KEY PERFORMANCE INDICATORS

Securements, Pending Backlog and Backlog

Securing profitable construction contracts and then controlling the costs during the execution of that work are the 
key drivers of success for the Company. To achieve this, new work must be available, which is a function of the 
general state of the economy. In periods of strong economic growth, client capital spending will generally increase 
and  there  will  be  more  opportunities  available  in  the  construction  industry.  In  economic  downturns,  fewer 
opportunities  typically  exist  and  competition  for  those  opportunities  becomes  even  more  intense,  generally 
resulting  in  lower  Gross  Profit  Percentages.  The  Company  must  be  successful  in  securing  profitable  work  in 
various  economic  conditions.  The  construction  industry  is  highly  fragmented  and  accordingly,  the  Company
competes  with  several  international,  national,  regional  and  local  construction  firms.  One  of  the  Company’s 
competitive advantages rests in its long-standing reputation for successfully delivering high quality projects that 
fully meet the needs of the customer, which enables the Company to secure repeat business from existing clients 
and win work with new clients. 

The Company’s success in securing work is also reflected in the values of its Pending Backlog and Backlog. The 
following table shows the Company’s balances at December 31 of the current and prior reporting periods:

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51

(in thousands of Canadian dollars)

2020

2019

Pending Backlog (1)

Backlog

$

$

1,635,900

2,682,498

$

$

625,000

1,547,427

(1) Pending Backlog does not have a standardized meaning under IFRS. See "Terminology and Non-GAAP Measures."     

Pending  Backlog  at  December  31,  2020  was  approximately  $1,635.9  million  compared  to  $625.0  million  at 
December 31, 2019. Pending Backlog now includes a greater proportion of Master Service Agreement (“MSA”) 
contracts from Stuart Olson. These contracts are typically with industrial clients, that span multiple years for MRO 
services, and amount to $1,117.6 million, which represents a recurring revenue steam over the next one to six 
years. The Company expects to convert these MSAs to Backlog as purchase orders are received. The remaining 
projects  comprising  Pending  Backlog  are  geographically  diverse  and  span  multiple  sectors  and  contracting 
methods. Projecting the timing of converting these projects into contracts has become more difficult as a result of 
the pandemic and several have shifted later into 2021.    

The  Company’s  Backlog  of  $2,682.5  million  at  December  31,  2020  increased  $1,135.1  million  or  73.4%  from 
December 31, 2019, mainly due to the acquisition of Stuart Olson which contributed $995.7 million of Backlog at 
acquisition date, primarily consisting of commercial and institutional projects.  

The following table outlines the changes in the amount of the Company’s Backlog throughout the current and prior 
reporting periods: 

(in millions of Canadian dollars)

Opening balance
Business combination
Securement and change orders
Realized in construction revenues

Closing balance

2020

2019

$

$

1,547.4
995.7
1,643.8
(1,504.4)

1,295.9
-
1,627.9
(1,376.4)

$

2,682.5

$

1,547.4

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Gross Profit Percentage 

Once  the  Company  has  secured  a  contract,  the  profitability  of  that  contract,  measured  by  the  Gross  Profit 
Percentage,  is  primarily  a  function  of  management’s  ability  to  control  costs,  achieve  productivity  objectives 
associated with the contract and resolve outstanding commercial issues as they arise.  

During 2020 the Company realized a Gross Profit Percentage of 8.4% compared with 5.2% in 2019. The significant 
year-over-year improvement is driven by the revenue mix, with a larger portion of revenue recognized from the 
Company’s  higher  margin  industrial  work  program,  as  well  as  the  inclusion  of  the  results  of  Stuart  Olson. 
Recoveries from CEWS reduced compensation expense by $21.2 million or 1.4% of 2020 revenue. 2019 Gross 
Profit Percentage was also negatively impacted by a PPP project that incurred additional costs due to design-
related  scope  growth  and  acceleration  expenses.  There  were  substantial  changes  to  the  scope  of  the  project 
requested by the client that are in commercial negotiation. This PPP project achieved substantial performance in 
the first quarter of 2020.  

Financial Condition 

The Company  must  have  adequate working capital and  equity retained in the  business to support  its  ongoing 
operations, including surety and contract security requirements. The Company continually monitors the adequacy 
of its working capital and equity to satisfy contract security needs. The following table shows the working capital 
and shareholders’ equity balances of the Company at December 31 of the current and prior reporting periods: 

(in thousands of Canadian dollars)

Working capital

Shareholders' equity

2020

2019

$

$

135,514

212,610

$

$

80,503

127,720

At  December  31,  2020,  the  Company  had  working  capital  of  $135.5  million  compared  with  $80.5  million  at 
December 31, 2019, an increase of $55.0 million, mainly related to the acquisition of Stuart Olson, which added 
$38.1 million of working capital. The $16.9 million remaining increase is primarily the result of the Company’s net 
income of $36.1 million exceeding the $17.6 million of dividends by $18.5 million. In addition, there was a decrease 
in non-cash assets comprised of $5.1 million of investments in equity accounted entities offset by the decrease in 
non-current liabilities of $3.5 million. 

The $84.9 million increase in the Company’s shareholders’ equity since December 31, 2019 was primarily the 
result of the $65.5 million of common shares issued as part of the Stuart Olson acquisition and net income of 
$36.1 million, partially offset by $17.9 million dividends declared.  

As a result of the strength of the Company’s balance sheet, the Company believes it has sufficient amounts of 
both working capital and equity to execute on its diversified work program and to accommodate expected growth 
in that work program during 2021. 

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53

 
 
 
 
 
        
          
        
        
 
 
 
 
 
Safety 

Bird’s approach to safety continues to evolve in response to new technologies, tools, strategies, and challenges 
such as COVID-19. At Bird, ensuring that all work on the Company’s sites is executed to exacting quality standards 
begins  with  the  commitment  to  creating  and  sustaining  a  culture  in  which  the  identification,  assessment,  and 
elimination or control of hazards and risks is incorporated into every aspect of operations. This is a cornerstone 
of the Company’s operational philosophy and approach.    

Ensuring that all workers leave the jobsite everyday just as healthy and safe as when they arrived is a shared 
commitment  and  by  working  collaboratively  with  employees  and  subcontractors  to  achieve  this,  the  Company 
minimizes risk and creates the appropriate conditions for the safe execution of construction activity - on time, on 
budget, and to our client’s satisfaction. Bird believes this shared commitment is critical to its overall success.  

Through  robust  orientation  and  training  programs  and  ongoing  communication  and  engagement  activities,  the 
Company encourages all workers to actively contribute to ongoing efforts to continuously improve not only the 
safety program, but overall collaboration and effectiveness. In this way, Bird’s workers not only leave work healthy 
and safe every day, but in doing so, help contribute to the Company’s overall operational excellence.  

At Bird, Personal Ownership is not just a vision or a philosophy, it is a daily routine practiced with discipline and 
rigor on all Bird job sites.  

Person-hours of work

Lost time incidents ("LTI")

Lost time incidents frequency ("LTIF")

2020

2019

5,641,819

3,943,846

1

0.04

0

0.00

54 | 2020 Management Discussion and Analysis 

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OUTLOOK 

The Company had a strong finish to 2020 with financial performance surpassing fourth quarter and full-year 2019 
results. Faced with significant uncertainty at the onset of the pandemic, the Company took prudent measures to 
ensure it remained financially stable. A healthy Backlog and cash position at the start of 2020, coupled with strong 
financial  and disciplined  operational performance  not  only  allowed  Bird to perform well, but  also permitted  the 
Company to undertake the significant and transformational acquisition of Stuart Olson that was completed in the 
third quarter of 2020.  

Given Bird’s significant financial strength prior to the declaration of the pandemic, the Company completed the 
largest and most transformative transaction in the Company’s 100-year history. Since closing the transaction, the 
integration of the two companies is well underway. The newly combined Bird team is sharing best practices and 
is expected to harmonize under one common employee benefits program, share purchase plan and a Company-
matched  registered  retirement  savings  plan  commencing  in  the  second  quarter  of  2021.  Integration  planning 
targets set for the first 100 days have been achieved and the Company is on track to attain the previously stated 
$25.0 million in cost synergies by the end of 2021. The Company has set in motion $6.9 million of the $10.0 million 
in EBITDA synergies and has realized the full annualized interest and depreciation and amortization savings of 
$10.0 million and $5.0 million, respectively. Management has also identified cross-selling opportunities which it is 
exploring and  are expected to accelerate in the coming years.  Stuart Olson contributed  to  the Company’s  net 
income in its first full quarter as part of the Company and the combination of its strong core business, and both 
expected revenue and expense synergies from combination with the Bird core businesses, are expected to be 
accretive  to  net  income  per  share  in  2021  and  beyond.  The  addition  of  Stuart  Olson  is  also  supportive  of  the 
Company’s strategy of diversification into lower risk and sustainable income streams.  

Similar to the start of fiscal 2020, the Company started fiscal 2021 with both a strong Backlog and cash position. 
At December 31, 2020, Backlog stood at $2.7 billion, with an additional $1.6 billion classified as Pending Backlog, 
while  cash  and  cash  equivalents  were  $212.1  million,  of  which  $96.7  million  was  accessible.  The  Company 
expects to recognize 59% of Backlog to revenue over the next twelve months, with the balance to convert beyond 
that period. This expectation is based on management’s best estimate but contains uncertainty as it is subject to 
factors outside of management’s control. Management has increased confidence in the acquired Backlog and the 
overall  embedded  margins  and  risk  profile,  noting  the  Company  made  necessary  contingencies  at  the  time  of 
acquisition. 

A key focus of the Company has been to ensure it has an appropriately balanced risk profile of Backlog through 
disciplined project selection. The acquired Backlog further reduces this risk profile, but also slightly reduces the 
embedded  Backlog  margin.  As  the  impacts  from  the  pandemic  subside,  the  Company  anticipates  the  margin 
profile  of  the  Backlog  to  increase  in  a  rebounding  economy.    With  the  acquisition  of  Stuart  Olson,  the  overall 
Backlog is now more diversified across a broad range of markets and contracting methods.  The Company expects 
the proportion of revenue earned from higher risk contract types to remain low in 2021 when compared to previous 
years. This reduced risk profile is inherently accompanied by a lower Backlog margin profile in components of the 
Stuart Olson Backlog and, as such, will slightly reduce the combined company’s margin profile in the near-term 
when compared to 2020. Despite this dynamic, the addition of Stuart Olson contributed positively to profitability in 
the fourth quarter of 2020. As always, Bird will take a disciplined approach in matching available talent to the risk 
profile of a project and overall work program to mitigate risk.  

The second wave of the pandemic further pushed projects in the pursuit pipeline out to later dates and has resulted 
in delays in the conversion of some projects in Pending Backlog into Backlog. Additionally, Bird has seen delays 
in project tenders and awards from clients, and experienced reduced productivity on project sites as a result of 
increased safety protocols implemented during the first wave of the pandemic. Throughout 2020, the Company 
experienced delays in smaller sized or short-term projects in locations such as Manitoba and Atlantic Canada, 
and more recently in the first quarter of 2021 had several  large projects in British Columbia impacted when the 
BC  Public  Health  Office  implemented  worksite  protocols  limiting  the  number  of  employees  on  project  sites. 
Consequently, and while timing remains uncertain, the Company anticipates governmental restrictions will further 
result in project delays in the first half of 2021, shifting portions of the work program into the back half of the year 

55 | 2020 Management Discussion and Analysis 

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55

 
 
 
 
 
and into 2022, which will negatively impact both revenue and gross profit in the year.  In addition, the Company 
does not anticipate that it will qualify to the same extent from the CEWS program in 2021 as it did in 2020 based 
on  the  updated  criteria  put  in  place  through  June  2021  by  the  federal  government.  This  will  place  downward 
pressure on profitability margin percentages on a year-over-year basis as the Company expects to maintain its 
workforce. The Company is well-positioned to  benefit from government stimulus spending,  given its expanded 
capabilities, and will closely monitor projects as they are announced. 

With the Build Bird five-year strategic plan nearing completion, the Company plans to release a new three-year 
strategic plan in 2021. Bird is committed to prioritizing sustainability and its Sustainability Overview can be viewed 
in the 2020 Annual Report.   

As always, Bird remains committed to building long-term shareholder value through sustainable profitable growth 
as management remains focused on managing the overall risk profile of its Backlog while looking to improve the 
margin profile of the newly combined entity, which is a key area of focus for the Company moving forward. From 
a  capital  allocation  standpoint,  the  Company  will  continue  to  pursue  a  balanced  mandate.  In  the  short-term, 
Management expects to deploy cash generated in operating activities towards strengthening its balance sheet, 
which will position the Company to successfully capitalize on both organic and inorganic growth opportunities as 
they arise.  The acquisition of Stuart Olson creates additional opportunity for our people and our customers, and 
Bird is well-positioned to play a major role in the Canadian construction industry with the potential to create long-
term value for all stakeholders for decades to come. 

CAPABILITY TO DELIVER RESULTS 

Productive capacity relates to the financial and non-financial resources available to the Company to execute its 
strategy and achieve planned results. From a financial perspective, the Company believes it has sufficient working 
capital and access to operating lines of credit to execute its current operational and growth forecast. The belief is 
explained in sections of this MD&A dealing with financial condition and liquidity. 

In addition to financial capacity, the success of the Company is dependent upon the management and leadership 
skills  of  senior  management.  On  an  annual  basis,  high-performing  candidates  are  identified  for  training  and 
progression into more senior positions within the Company. The Company’s performance management system 
emphasizes the development of leadership skills.  In addition, the Company sponsors internal and external training 
programs,  including  the  Bird  Leadership  Academy,  the  Bird  Site  Management  program  and  the  Taking  Flight 
management training program, to provide a forum for high-potential candidates to develop their leadership skills.  

56 | 2020 Management Discussion and Analysis 

56

2020 Management’s Discussion and Analysis

 
 
 
 
 
   
 
 
 
 
 
 
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY 

The following table presents a summary of the Company’s financial condition at December 31 of the current and 
prior reporting periods: 

(in thousands of Canadian dollars)

Cash and cash equivalents
Non-cash working capital
Working capital

Non-current loans and borrowings
Non-current right-of-use liabilities
Shareholders' equity

2020

2019

$

$

212,068
(76,554)
135,514

64,903
59,327
212,610

180,334
(99,831)
80,503

34,738
23,075
127,720

As a result of the strength of the Company’s balance sheet, the Company believes it has sufficient amounts of 
both working capital and liquidity to execute its Backlog and to accommodate expected growth in its diversified 
work program during 2021. 

As a component of working capital, the Company maintains a balance of cash and cash equivalents. At December 
31, 2020, this balance totalled $212.1 million. Included in cash and cash equivalents was $60.2 million of cash in 
special purpose joint operation bank accounts ($134.0 million at December 31, 2019). Cash and cash equivalents 
generally available for operations at December 31, 2020 was $96.7 million ($36.1 million at December 31, 2019) 
with the remainder held in trust or joint operations accounts. 

Non-cash working capital was in a net liability position of $76.6 million at December 31, 2020, compared to a net 
liability position of $99.8 million at December 31, 2019.   

The  non-cash  working  capital  position  fluctuates  significantly  in  the  normal  course  of  business  from  period  to 
period, primarily due to the timing of differences between the settlement of payables due to subcontractors and 
suppliers,  billings  and  collection  of  receivables  from  clients,  and  the  timing  in  the  settlement  of  income  taxes 
payable.  The  Company’s  cash  balances  absorb  these  fluctuations  with  no  net  impact  to  the  Company’s  net 
working capital position or ability to access contract surety support. The Company believes it has sufficient working 
capital to support its current and projected contract requirements.  

At  December  31,  2020,  the  Company  had  working  capital  of  $135.5  million  compared  with  $80.5  million  at 
December 31, 2019, an increase of $55.0 million, mainly related to the acquisition of Stuart Olson, which added 
$38.1 million of working capital. The $16.9 million remaining increase is primarily the result of the Company’s net 
income $36.1 million exceeding the $17.6 million of dividends by $18.5 million. In addition, there was decrease in 
non-cash assets comprising of a $5.1 million investments in equity accounted entities offset by the decrease in 
non-current liabilities of $3.5 million. 

Credit Facilities 

During the fourth quarter of 2020, the Company entered into a three-year, $200.0 million committed, syndicated 
credit facility. The Company is well-served by its long-held philosophy of maintaining a strong balance sheet and, 
as a result, is well-positioned to weather these uncertain times with $96.7 million of accessible cash and cash 
equivalents (excluding cash held in joint ventures and trust accounts) and $167.3 million of capacity available via 
its  syndicated  credit  facility,  providing  adequate  liquidity.  The  Company  has  also  worked  closely  with  Export 
Development  Canada  (“EDC”)  and  has  increased  its  Account  Performance  Security  Guarantee  (“APSG”)  limit 
from $25 million to $75 million, which increased liquidity for the Company.  Despite the negative financial impacts 
from  the  COVID-19  pandemic  in  2020,  the  Company  has  sufficient  funding  to  meet  its  foreseeable  operating 
requirements and expects to remain in compliance with all banking covenants.  

57 | 2020 Management Discussion and Analysis 

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57

 
 
 
 
 
        
        
         
         
        
          
          
          
          
          
        
        
 
 
The Company has several credit facilities available to access in order to support the issuance of letters of credit, 
finance future capital expenditures and finance the day-to-day operations of the business. 

Syndicated Credit Facility 

(cid:120)  Committed revolving credit facility 

As part  of the  Syndicated facility, the Company replaced its  previous committed revolving operating credit 
facility of $85.0 million at December 31, 2019, which had increased to $100.0 million during the third quarter 
of 2020, with a $165.0 million committed revolving credit facility. The $165.0 million committed revolving credit 
facility  matures  December  7,  2023.  As  part  of  the  agreement,  the  Company  provides  a  general  secured 
interest in the assets of the Company.  

At December 31, 2020, the Company has $22.7 million in letters of credit outstanding and has drawn $25.0 
million  on  this  facility.  The  $25.0  million  draw  is  presented  as  long-term  loans  and  borrowings  on  the 
Company’s statement  of financial  position.  Borrowings under  the facility  bear interest at  a rate per annum 
equal to the Canadian prime rate plus a spread. A standby fee is payable quarterly on the unutilized portion 
of the facility. The  Company was  in  full compliance  with its covenants under  each respective facility as at 
December 31, 2020 and 2019. Draws of $25.0 million (December 31, 2019 - $15.0 million) on the previous 
committed revolving operating credit facility were repaid in full in 2020. 

(cid:120)  Committed non-revolving term debt facility 

As  part  of  the  Syndicated  facility,  the  Company  replaced  its  previous  $35.0  million  committed,  term  debt 
revolving facility with a committed non-revolving term loan facility totalling $35.0 million. As of December 31, 
2020, the Company has drawn $35.0 million to finance the acquisition of Stuart Olson. The loan has scheduled 
repayments due quarterly until the maturity date of September 24, 2028. Any repayment of the facility cannot 
be reborrowed. Borrowings under the facility bear interest at a rate per annum equal to the Canadian prime 
rate plus a spread. Draws of $26.3 million (December 31, 2019 - $10.0 million) on the previous committed 
revolving term loan facility were repaid in full in 2020. 

(cid:120)  Accordion 

The Company has an  accordion of up to  an additional $50.0  million to increase the limit of  the committed 
revolving  credit  facility  and  the  committed  non-revolving  term  debt  facility.  The  aggregate  increase  to  the 
committed  revolving  credit  facility  and  committed  non-revolving  term  debt  facility  may  not  exceed  the 
combined $50.0 million.  

The Company was in full compliance with its covenants under each respective facility as at December 31, 2020 
and 2019. 

Letters of Credit Facilities 

The Company has available $125.0 million of demand facilities used primarily to support the issuance of letters of 
credit. All letters of credit issued under these facilities are supported by the pledge of Company-owned financial 
instruments, including cash, or through a guarantee from EDC. At December 31, 2020, the Company has $44.5 
million in letters of credit outstanding on these facilities (December 31, 2019 - $6.6 million).  

The Company has available a facility with EDC to support the issuance of contract performance security letters of 
credit  issued  by  financial  institutions  on  behalf  of  the  Company.  The  Company  can  use  this  facility  only  when 
letters of credit have been issued as contract security for projects that meet the EDC mandate.   

Letters of credit are typically issued to support the Company’s performance obligations relating to PPP and other 
construction projects. 

58 | 2020 Management Discussion and Analysis 

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2020 Management’s Discussion and Analysis

 
 
 
 
 
 
 
The following table outlines the amount of the credit facilities, the amount of issued letters of credit and the amount 
of collateral pledged in support of the outstanding letters of credit at December 31 of the current and prior reporting 
periods: 

(in thousands of Canadian dollars)

2020

2019

Committed revolving credit facility
Letters of credit issued from committed revolving credit facility
Drawn from committed revolving credit facility
Available committed revolving credit facility

Committed non-revolving term debt facility
Drawn from committed revolving term loan facility
Available committed revolving term loan facility

Accordion
Drawn from Accordion
Available Accordion

Letters of credit facilities
Letters of credit issued from letters of credit facilities
Available letters of credit facilities

Collateral pledged to support letters of credit

Guarantees provided by EDC

Equipment Financing 

$

$

$

$

$

$

165,000
22,702
25,000
117,298

35,000
35,000
-

50,000
-
50,000

125,000
44,490
80,510

139

44,353

$

$

$

$

$

$

85,000
28,504
15,000
41,496

35,000
10,000
25,000

-
-
-

80,000
6,559
73,441

139

6,421

The Company and its subsidiaries have term credit facilities of up to $40.0 million to be used to finance equipment 
purchases. Borrowings under the facilities are secured with a first charge on the equipment being financed. As of 
December 31, 2020, there is $9.2 million outstanding on the facilities of which $0.6 million is classified as ROU 
liabilities (December 31, 2019 - $12.4 million of which $2.7 million is classified as ROU liabilities). Interest on the 
facilities can be charged at a fixed rate based on the Bank of Canada bond rate plus a spread. Interest is paid 
monthly in arrears. 

The Company also has multiple, fixed interest rate, term loans which were used to finance equipment purchases. 
At December 31, 2020, the balance outstanding on these term loans amounted to $3,639 (December 31, 2019 - 
$5,946). Principal and interest are payable monthly, and these term loans are secured by specific equipment of 
the Company.  

The Company’s total lease commitments are outlined under Contractual Obligations. 

At  December  31,  2020,  the  Company  was  in  compliance  with  all  debt  covenants  relating  to  its  operating  and 
equipment operating lease lines of credit.  

59 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

59

 
 
 
 
 
        
          
          
          
          
          
        
          
          
          
          
          
                
          
          
                
                
                
          
                
        
          
          
            
          
          
               
               
          
            
 
 
 
 
Cash Flow Data 

The following table provides an overview of cash flows during the following periods:  

(in thousands of Canadian dollars)

Cash flows from operations before changes in non-cash working 
capital
Changes in contract assets - alternative finance projects
Changes in non-cash working capital and other
Cash flows from (used in) operating activities

$

Investments in equity accounted entities
Capital distributions from equity accounted entities
Proceeds on sale of investment in equity accounted entities
Additions to property, equipment and intangible assets
Proceeds on sale of property and equipment
Acquisition of Stuart Olson
Other 
Cash flows from (used in) investing activities

Proceeds from issue of common shares
Dividends paid on shares
Proceeds from non-recourse project financing
Repayment of non-recourse project financing
Proceeds from loans and borrowings
Repayment of loans and borrowings
Repayment of right-of-use liabilities
Cash flows from (used in) financing activities

(unaudited)
Quarter ended December 31,
2019

2020

Year ended December 31,
2019

2020

$

39,806
139,980
19,145
198,931

$

15,525
(28,367)
67,546
54,704

$

71,696
75,067
(17,816)
128,947

(307)
1,653
-
(6,068)
2,843
-
(1,134)
(3,013)

-
(5,171)
1,891
(131,849)
26,376
(26,684)
(5,589)
(141,026)

112
353
-
(2,807)
733
-
(244)
(1,853)

-
(4,145)
29,039
-
10,000
(1,507)
(2,406)
30,981

(5,088)
5,523
11,034
(14,227)
9,211
(59,960)
(392)
(53,899)

39,876
(17,607)
46,782
(131,849)
88,283
(56,658)
(12,110)
(43,283)

30,201
(68,054)
(223)
(38,076)

-
1,846
-
(14,431)
2,661
-
1,705
(8,219)

-
(16,582)
72,832
-
24,536
(5,113)
(7,615)
68,058

Increase in cash and cash equivalents

$

54,892

$

83,832

$

31,765

$

21,763

Operating Activities 

During fiscal 2020, cash flows from operating activities generated cash of $128.9 million compared with cash used 
of $38.1 million in 2019.  

Cash flows from operations before changes in non-cash working capital of $71.7 million increased $41.5 million 
year-over-year from the $30.2 million cash generated in 2019 primarily due to the $26.6 million improvement in 
net income, a $10.7 million higher non-cash addback of income tax expense year-over-year, a $5.9 million higher 
non-cash  addback  of  amortization  and  depreciation  expense  year-over-year,  a  $1.9  million  higher  non-cash 
addback of finance and other costs and a $1.5 million higher non-cash addback of deferred compensation, partially 
offset by $5.1 million higher non-cash reduction for income from equity accounted investments.  

Changes in contract assets – alternative finance projects in 2020 increased $143.1 million of cash year-over-year. 
This inflow of cash was partially offset by the $131.8 million of repayment of non-recourse project financing during 
the fourth quarter of 2020. The activity in 2019 and 2020 relates to the OPP Modernization Phase 2 alternative 
finance project. The OPP Modernization project had increased construction activity throughout 2019 and most of 
2020 and the resultant contract asset balance increased until the project was completed and billed to the client. 
The  project  obtained  substantial  completion  and  was  billed  and  collected  during  the  fourth  quarter  of  2020, 
enabling the full repayment of the non-recourse project financing in the same quarter.  

During 2020, the $17.6 million year-over-year decrease in cash from changes in non-cash working capital and 
other was primarily due to a $155.2 million increase in accounts receivable and contract assets, collection of other 
assets of $6.0 million, partially offset by a $119.9 million increase in accounts payable and a $45.7 million decrease 
in contract liabilities. During 2019, the primary drivers of the $0.2 million decrease in cash from the changes in 
non-cash working capital and other was a $36.6 million increase in accounts payable, a $52.1 million increase in 
contract liabilities and partially offset by a $75.5 million decrease in accounts receivable and contract assets. 

60 | 2020 Management Discussion and Analysis 

60

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The  non-cash  working  capital  position  fluctuates  significantly  in  the  normal  course  of  business  from  period  to 
period, primarily due to the timing of differences between the settlement of payables due to subcontractors and 
suppliers,  billings  and  collection  of  receivables  from  clients,  and  the  timing  of  the  settlement  of  income  taxes 
payable. 

Investing Activities 

During 2020, the Company used $53.9 million of cash from investing activities compared to the $8.2 million used 
in  2019.  In  2020,  the  Company  used  $60.0  million  of  cash  in  the  acquisition  of  Stuart  Olson.  In  addition,  the 
Company received proceeds of $11.0 million from the sale of its investment in equity accounted entities, as well 
as incremental distributions from equity investments of $3.7 million, which was partially offset by the additional 
investments in equity accounted entities of $5.5 million. The Company also benefited from higher proceeds from 
the sale of equipment of $6.5 million compared to the same period in 2019. This was offset by lower proceeds 
from the maturity of short-term investments of $1.7 million in 2019.  

Financing Activities 

During  2020,  the  Company  used  $43.3  million  of  cash  from  financing  activities  compared  to  $68.1  million 
generated in 2019. The year-over-year change is primarily driven by the previously described $131.8 million of 
repayment of non-recourse project financing during the fourth quarter of 2020, proceeds of $39.9 million from the 
issuance of common shares related to the acquisition of Stuart Olson, and higher proceeds of $63.7 million of 
loans and borrowings. This was partially offset by repayment of loans and borrowings and right-of-use liabilities 
that were $56.0 million higher than the same period in 2019.  

CONTRACTUAL OBLIGATIONS 

At December 31, 2020, the Company has future contractual obligations of $653.5 million. Obligations for accounts 
payable, right-of-use liabilities and loans and borrowings, including principal and estimated interest, over the next 
five years and thereafter are: 

(in thousands of Canadian dollars)

Accounts payable
Dividends payable
ROU liabilities
Committed revolving credit facility

Committed non-revolving term loan

Equipment financing
Note payable

$

$

Carrying 
amount

Contractual 
cash flows

Not later 
than 1 year

2 - 3 
years

4 - 5 
years

490,470
1,724
78,075
25,000

35,000
12,315
598
643,182

490,470
1,724
87,881
25,000

35,000
12,807
598
653,480

479,189
1,724
20,646
-

1,750
5,973
598
509,880

11,281
-
32,762
25,000

8,750
6,066
-
83,859

-
-
18,860
-

9,800
768
-
29,428

61 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

Later 
than 5 
years

-
-
15,613
-

14,700
-
-
30,313

61

 
 
 
 
 
 
      
       
     
       
             
             
          
           
         
             
             
             
        
         
       
       
       
       
        
         
             
       
             
             
        
         
         
         
         
       
        
         
         
         
            
             
             
              
            
             
             
             
      
       
     
       
       
       
 
 
 
 
 
FINANCIAL INSTRUMENTS 

Financial  instruments  consist  of  recorded  amounts  of  derivative  contracts,  accounts  receivable  and  other  like 
amounts  that  will  result  in  future  cash  receipts,  as  well  as  accounts  payable,  dividends  payable,  loans  and 
borrowings, and any other amounts that will result in future cash outlays. The fair value of the Company’s loans 
and  borrowings  approximate  their  carrying  values  on  a  discounted  cash  flow  basis  as  the  majority  of  these 
obligations bear interest at market rates. The fair values of the remaining financial instruments approximate their 
carrying value due to their relatively short periods to maturity. 

The Company uses certain derivative financial instruments which are measured at fair value through profit and 
loss (“FVTPL”). These include interest rate swaps to manage its interest rate risk on non-recourse project financing 
and Total Return Swap (“TRS”) derivative contracts for the purpose of managing its exposure to changes in the 
fair value of its share-based compensation programs due to changes in the Company’s share price. The Company 
does not employ hedge accounting for any of its derivative contracts currently in place. The Company does not 
hold or use any derivative  instruments for trading or speculative  purposes.  The  Board  of Directors has overall 
responsibility  for  the  establishment  and  oversight  of  the  Company’s  risk  management  framework  and  reviews 
corporate policies on an ongoing basis. The financial instruments that Bird uses expose the Company to credit, 
liquidity, market and currency risks. Refer to Note 31 of the December 31, 2020 consolidated financial statements 
for further details. 

Credit Risk 

The Company is primarily exposed to credit risk through accounts receivable. Before entering into any construction 
contract and during the course of the construction project, the Company goes to considerable lengths to satisfy 
itself that the customer has adequate resources to fulfil its contractual payment obligations as construction work 
is completed. If a customer was unable or unwilling to pay the amount owing, the Company will generally have a 
right to register a lien against the project that will normally provide some security that the amount owed would be 
realized. The Company reviews impairment of its accounts receivable at each reporting period and reviews the 
provision  for  doubtful  accounts  for  expected  future  credit  losses.  The  Company  takes  into  consideration  the 
customer’s  payment  history,  creditworthiness,  and  the  current  economic  environment  in  which  the  customer 
operates, to assess impairment. In determining the quality of accounts receivable, the Company considers any 
change in the credit quality of customers from the date credit was initially granted up to the end of the reporting 
period. As at December 31, 2020, the Company had $57.3 million of accounts receivable (December 31, 2019 – 
$45.6 million) which were greater than 90 days past due, with $1.5 million provided for as at December 31, 2020 
(December  31,  2019  –  $1.5  million).  The  provision  for  doubtful  accounts  has  been  included  in  general  and 
administrative expense in the statement of income and is net of any recoveries that were provided for in a prior 
period.  Management  is  not  concerned  about  the  credit  quality  and  collectability  of  these  accounts,  as  the 
Company’s customers are  predominantly large in scale and  of high creditworthiness, and the concentration of 
credit risk is limited due to the Company’s sizeable and unrelated customer base.  

Liquidity Risk 

Liquidity  risk  is  the  risk  that  the  Company  will  encounter  difficulties  in  meeting  its  financial  obligations  as  they 
become  due.  The  Company  manages  this  risk  through  management  of  its  capital  structure,  monitoring  and 
reviewing  actual  and  forecasted  cash  flows  and  the  effect  on  bank  covenants,  and  maintaining  unused  credit 
facilities where possible to ensure there are available cash resources to meet the Company’s liquidity needs. In 
managing liquidity risk, the Company has access to committed short and long-term debt facilities as well as equity 
markets, the availability of which is dependent on market conditions. 

Market Risk 

Market risk  is the risk that  changes  in market prices,  such as interest rates,  equity prices  and corporate  bond 
yields, will affect the Company’s income or the value of its holdings in liquid securities. The Company is exposed 
to interest rate risk to the extent that its credit facilities and TRS derivatives are based on variable rates of interest. 
The Company has certain share-based compensation plans, whereby the values are based on the common share 

62 | 2020 Management Discussion and Analysis 

62

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price of the Company. The Company has fixed a portion of the settlement costs of these plans by entering into 
various TRS derivative contracts. 

Currency Risk 

Currency risk is the risk that fluctuations in currency exchange rates will affect the Company’s net income. The 
Company uses foreign currency to settle payments to vendors and subcontractors in the foreign currency. The 
Company’s exposure to currency risk is not significant.  

DIVIDENDS 

The Company declared monthly eligible dividends on common shares payable on or about the 20th of the month 
following the month in which the dividend was declared. The following table outlines Bird’s dividend history:  

Dividend Period 

January 1 to March 31 
April 1 to June 30 
July 1 to September 30 
October 1 to December 31 

2020 

$0.0975 
$0.0975 
$0.0975 
$0.0975 

2019 

$0.0975 
$0.0975 
$0.0975 
$0.0975 

As of  March  9, 2021, the  Board of Directors has declared eligible  dividends with a record date subsequent to 
December 31, 2020 for the following months:  

Eligible dividends declared 
January dividend 
February dividend 
March dividend 
April dividend 

Record date  
January 29, 2021 
February 26, 2021 
March 31, 2021 
April 30, 2021 

Payment date  
February 19, 2021 
March 19, 2021 
April 20, 2021 
May 20,2021 

Dividend per share 
$0.0325 
$0.0325 
$0.0325 
$0.0325 

OUTSTANDING COMMON SHARE DATA AND STOCK EXCHANGE LISTING 

The  Company  is  authorized  to  issue  an  unlimited  number  of  common  shares.  The  Company  had  a  total  of 
53,038,929 common shares outstanding at December 31, 2020 (December 31, 2019 - 42,516,853). 

At December 31, 2020 there are nil stock options outstanding (December 31, 2019 – 100,000). With the approval 
of the Equity Incentive Plan (EIP) in May 2017, the Board of Directors resolved to suspend the stock option plan.   

The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) under the trading symbol BDT. 

OFF BALANCE SHEET ARRANGEMENTS  

The Company has surety lien bonds issued on behalf of the Company valued at $93.4 million at December 31, 
2020 (December 31, 2019 - $56.6 million).  

The Company has recognized assets and liabilities for all leases with a term of more than twelve months, excluding 
low-value assets, in accordance with IFRS 16 Leases. 

Further details of commitments and contingencies are included in Note 33 of the December 31, 2020 consolidated 
financial statements. 

63 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

63

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RELATED PARTY TRANSACTIONS 

The Company’s related parties, as defined by IFRS, are its joint arrangements and key management personnel. 
A description of any material transactions with these related parties is included in Note 34 of the December 31, 
2020 consolidated financial statements. 

SUMMARY OF QUARTERLY RESULTS 

The  Company  experiences  more  seasonality  in  its  business  in  the  first  quarter  and  early  second  quarter  as  a 
result of the more annualized nature of its mining work program and the timing of new project starts in its industrial 
work program. Contracts typically extend over several quarters and often over several years. 

For  purposes  of  quarterly  financial  reporting,  the  Company  must  estimate  the  cost  required  to  complete  each 
contract to assess the overall profitability of the contract and the amount of gross profit to recognize for the quarter. 
Such  estimating  includes  contingencies  to  allow  for  certain  known  and  unknown  risks.  The  magnitude  of  the 
contingencies will depend on the nature and complexity of the work to be performed. As the contract progresses 
and remaining costs to be incurred and risk exposures become more certain, contingencies will typically decline 
or have been utilized, although certain risks will remain until the contract has been completed, and even beyond. 

In some cases, variations in earnings may occur where costs incurred to date may be recoverable from insurance 
policies  or  claims  to  customers  at  a  future  date  but  cannot  be  recorded  in  the  current  quarter.  In  the  case  of 
insurance claims, financial recovery is not recorded until certainty of the recovery is attained. In the case of claims 
against customers that are considered constrained variable consideration, revenue is not recorded until it is highly 
probable  that  there  will  not  be  a  significant  reversal  of  cumulative  revenue  to  date.  As  a  result,  earnings  may 
fluctuate  significantly  from  quarter-to-quarter,  depending  on  whether  large  and/or  complex  contracts  are 
completed or nearing completion during the quarter, or have been completed in a prior quarter, and may fluctuate 
based on timing of resolution of claims. 

There are also several other factors that can affect the Company’s revenues and profit from quarter-to-quarter. 
These  include  the  timing  of  contract  awards,  the  value  of  subcontractor  billings  and  project  scheduling. 
Management does not believe that any individual factor is responsible for changes in revenue from quarter-to-
quarter, except for seasonality in the first quarter of each year and the impact of the COVID-19 pandemic during 
2020. 

(in thousands of Canadian dollars, except per share amounts)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2019

2020

Revenue

Net income (loss)

Earnings (loss) per share

Adjusted Earnings(1)

Adjusted Earnings Per Share(1)

$   

261,777

$   

315,428

$   

378,591

$   

420,612

$   

321,646

$   

282,766

$   

345,060

$   

554,960

(6,466)

(0.15)

(6,466)

(0.15)

1,001

0.02

1,001

0.02

6,782

0.16

6,782

0.16

8,167

0.19

8,167

0.19

1,123

0.03

1,123

0.03

5,624

0.13

6,566

0.15

8,822

0.20

20,534

0.39

12,364

21,526

0.29

0.41

Adjusted EBITDA(1)

(3,132)

5,447

14,021

16,012

7,562

12,328

22,036

40,011

(1) Adjusted Earnings, Adjusted Earnings Per Share and Adjusted EBITDA are non-GAAP measures and do not have standardized meanings 
under IFRS. See "Terminology and Non-GAAP Measures."                                            

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ACCOUNTING POLICIES 

The  Company’s  significant  accounting  policies  are  outlined  in  the  notes  to  the  audited  Consolidated  Financial 
Statements for the year ended December 31, 2020.  

New Accounting Standards, Amendments and Interpretations Adopted 

Amendments to IFRS 3 – Definition of a Business 
On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations that seek to clarify whether 
a  transaction  results  in  an  asset  or  a  business  acquisition.  The  amendments  apply  to  businesses  acquired  in 
annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The definition of 
a  business  is  narrower  which  could  result  in  fewer  business  combinations  being  recognized. The  Company 
adopted the amendments to IFRS 3 on a prospective basis on January 1, 2020. The adoption of the amendments 
to IFRS 3 did not have an impact on the financial statements.  

Future Accounting Changes 

There are new accounting standards, amendments to accounting standards and interpretations that are effective 
for annual periods beginning on or after January 1, 2021 and have not been applied in preparing the financial 
statements for the year ended December 31, 2020. These standards and interpretations are not expected to have 
a material impact on the Company’s financial statements. The following standard is applicable to the Company: 

Amendments to IFRS 16 Leases  

On  May  28,  2020,  the  IASB  issued  COVID-19-Related  Rent  Concessions  (Amendment  to  IFRS  16).  The 
amendments are effective for annual periods beginning on or after June 1, 2020. Early adoption is permitted. 

The amendments exempt lessees from having to consider individual lease contracts to determine whether rent 
concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows 
lessees to  account for such rent concessions  as if they were not  lease modifications.  It applies to COVID-19-
related rent concessions that reduce lease payments due on or before June 30, 2021. The Company will adopt 
the amendments to IFRS 16 on a prospective basis and the amendments are not expected to have a material 
impact on the financial statements. 

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CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS 

The  preparation  of  the  financial  statements  requires  management  to  make  judgements,  estimates  and 
assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, 
assets, liabilities and the disclosure of contingent assets and liabilities at the reporting date.  

Uncertainty about these assumptions and estimates could result in a material adjustment to the carrying amount 
of  an  asset  or  liability  and/or  the  reported  amount  of  revenue  and  expense  in  future  periods.  Estimates  and 
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in 
the period in which the estimates are revised and in any future periods affected. 

Impact of the COVID-19 pandemic 
On  March  11,  2020  the  WHO  declared  COVID-19  a  global  pandemic.  Since  the  declaration,  the  Canadian 
construction industry has faced uncertainty as each provincial government has responded by implementing social 
and work restrictions to address the public health threat. COVID-19, along with the variants of the virus that have 
emerged, continue to have a significant negative impact on the global and Canadian economy and preventative 
safety  measures  remain  in  place  and  continue  to  vary  from  province  to  province  as  governments  respond  to 
fluctuations in case numbers. 

Due to the impact of the COVID-19 pandemic on both current and future market conditions and the economic 
environment,  there  is  significant  uncertainty  and  complexity  in  respect  of  certain  judgements,  estimates  and 
assumptions  used  in  the  preparation  of  these  financial  statements.  These  include  the  amount  of  CEWS  the 
Company has accrued or may qualify for in the future, project timing and progress, future contract awards, and 
collectability  of  accounts  receivable  and  contract  assets.  The  Company’s  operations  could  be  impacted  from 
disruptions to projects, the supply chain and shortages of labour. In addition, several projects that were expected 
to be awarded and secured have been delayed, suspended, or cancelled, and this could continue as a result of 
the pandemic. The future effectiveness of the Company’s business continuity plan and various safety and austerity 
measures implemented is also subject to uncertainty.  

Assets and liabilities acquired in a business combination 
The Company assesses whether an acquisition transaction should be accounted for as an asset acquisition or a 
business  combination  under  IFRS  3  Business  Combinations.  The  purchase  price  related  to  a  business 
combination is allocated to the underlying acquired assets and liabilities based on their estimated fair value at the 
time of acquisition. The determination of fair value requires the Company to make assumptions, estimates and 
judgements regarding cash flow projections, valuation techniques, economic risk, weighted average cost of capital 
and future events. The measurement of the purchase consideration and allocation process is therefore inherently 
subjective  and  impacts  the  amounts  assigned  to  individually  identifiable  assets  and  liabilities.  As  a  result,  the 
purchase price allocation impacts the Company’s reported assets and liabilities (including the amounts allocated 
to  intangible  assets  and  goodwill),  and  future  earnings  due  to  the  associated  depreciation  and  amortization 
expense along with the required impairment testing. 

Revenue and gross profit recognition 
Construction  revenue,  construction  costs,  contract  liabilities,  and  contract  assets  are  based  on  estimates  and 
judgements used in determining contract revenue and including the calculation of estimated costs to complete in 
order to calculate the stage of completion for a particular construction project, depending upon the nature of the 
construction contract, as more fully described in the revenue recognition policy. To determine the estimated costs 
to  complete  construction  contracts,  assumptions  and  estimates  are  required  to  evaluate  matters  related  to 
schedule, material and labour costs, labour productivity, changes in contract scope and subcontractor costs. Due 
to the nature of construction activities, estimates can change significantly from one accounting period to the next. 

The value of many construction contracts increases over the duration of the construction period. Change orders 
may be issued by customers to modify the original contract scope of work or conditions. In addition, there may be 
disputes or claims regarding additional amounts owing as a result of changes in contract scope, delays, additional 
work or changed conditions. Construction work related to a change order or claim may proceed, and costs may 
be incurred, in advance of final determination of the value of the change order. Many change orders and claims 
may not be settled until the construction project is complete or subsequent to completion and the nature of the 
relationship with the other party to the claim and the history of success of these claims may impact the associated 

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revenue or cost recovery. Claims against customers for variable consideration due to factors described above are 
assessed  under  the  Company’s  revenue  policy,  which  requires  significant  judgement.  The  amount  of  variable 
consideration that is constrained is the difference between the total claim value and the best estimate of recovery. 
This constrained value is reviewed each reporting period.  

Provisions 
Legal and warranty and other provisions involve the use of estimates. Estimates and assumptions are required to 
determine when to record and how to measure a provision in the financial statements. The outcomes may differ 
significantly from the estimates used in preparing the financial statements resulting in adjustments to previously 
reported financial results. 

Impairment of non-financial assets  
Management evaluates property and equipment, intangible assets, and right-of-use (“ROU”) assets at the end of 
each reporting period to determine if there are events or circumstances which indicate that the carrying value may 
not  be  recoverable.  Goodwill  is  tested  for  impairment  annually,  or  more  frequently  if  events  or  changes  in 
circumstances  indicate  that  the  asset  may  be  impaired.  Impairment  testing  is  performed  by  comparing  the 
recoverable amount of the cash-generating unit ("CGU"), or groups of CGUs to its carrying amount. There is a 
significant amount of uncertainty with respect to the estimate of the recoverable amount given the necessity of 
making  economic  projections  which  employ  the  following  key  assumptions:    future  cash  flows,  growth 
opportunities, including economic risk assumptions, and estimates of achieving key operating metrics and drivers; 
and the discount rate. Refer to Note 17 of the December 31, 2020 consolidated financial statements for further 
details regarding the assumptions and estimates regarding the Company’s goodwill impairment assessment. 

Measurement of pension obligations  
The  Company’s  obligations  and  expenses  related  to  defined  benefit  (“DB”)  pension  plans,  including 
supplementary executive retirement plans, are determined using actuarial valuations and are dependent on many 
significant assumptions. The DB obligations and benefit cost levels will change as a result of future changes in 
actuarial methods and assumptions, membership data, plan provisions, legislative rules, and future experience 
gains or losses, which have not been anticipated at this time. Actual experience that differs from assumptions will 
result in gains or losses that will be disclosed in future accounting valuations. Refer to Note 22 of the December 
31,  2020  consolidated  financial  statements  for  further  details  regarding  the  Company’s  DB  plans  as  well  as  a 
sensitivity analysis of a change in the discount rate assumption used in the calculations and the resultant impact 
to financial results. 

Share-based payments 
Compensation expense accrued for performance share units (“PSU”) is dependent on an adjustment to the final 
number  of  PSU  awards  that  will  eventually  vest  based  on  a  performance  multiplier  that  is  estimated  by 
management and approved by the Board of Directors. Large fluctuations in compensation expense may occur 
due to changes in the underlying share price or revised management estimates of relevant performance factors. 

Leases 
The  Company  applies  judgement  in  reviewing  each  of  its  contractual  arrangements  to  determine  whether  the 
arrangement contains a  lease within  the scope of IFRS 16  Leases.  Leases that are recognized  are subject to 
further management judgement and estimation in various areas specific to the arrangement. In determining the 
lease  term  to  be  recognized,  management  considers  all  facts  and  circumstances  that  create  an  economic 
incentive to exercise an extension option, or not to exercise a termination option. 

Lease liabilities have been estimated using a discount rate equal to the Company-specific incremental borrowing 
rate. This rate represents the rate that the Company would incur to obtain the funds necessary to purchase an 
asset of a similar value, with similar payment terms and security in a similar economic environment. 

Income taxes 
Tax regulations and legislation are subject to change and there are differing interpretations requiring management 
judgement.  Deferred  tax  assets  are  recognized  when  it  is  considered  probable  that  deductible  temporary 
differences will be recovered in future periods, which requires management judgement. Deferred tax liabilities are 
recognized when it is considered probable that temporary differences will be payable to tax authorities in future 
periods, which requires management judgement. Income tax filings are subject to audits and re-assessments and 

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changes in facts, circumstances and interpretations of tax laws may result in a material increase or decrease in 
the Company’s provision for income taxes. 

CONTROLS AND PROCEDURES 

Controls & Procedures 

As permitted by NI 52-109, Certification of Disclosures in Issuers’ Annual and Interim Filings, Bird may limit its 
design of Disclosure Controls and Procedures or Internal Controls over Financial Reporting to exclude controls, 
policies and procedures of a business that was acquired not more than 365 days before the end of the financial 
period. 

The controls and procedures set out below are limited to Bird companies and do not include controls, policies and 
procedures for Stuart Olson, acquired on September 25, 2020. 

Disclosure Controls and Procedures 

Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is 
gathered  and  reported  to  senior  management,  including  the  President  and  Chief  Executive  Officer  (CEO)  and 
Chief Financial Officer (CFO), on a timely basis so that appropriate decisions can be made regarding information 
to be included in public disclosures required under provincial and territorial securities legislation.  

In accordance with NI 52-109, an evaluation of the design and operational effectiveness of the disclosure controls 
and  procedures  was  carried  out  under  the  supervision  of  management,  including  the  CEO  and  CFOas  of 
December 31, 2020. Based on their evaluations, the CEO and CFO have concluded that the disclosure controls 
and procedures were designed and operating effectively as at December 31, 2020. 

Internal Control over Financial Reporting 

Internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of 
financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with  IFRS. 
Absolute assurance cannot be provided that all misstatements have been detected because of inherent limitations 
in  all  control  systems.  The  Company’s  management  is  responsible  for  designing  and  maintaining  adequate 
internal control over financial reporting for the Company.  

Under the supervision and with the participation of management, including the CEO and CFO, the design and 
operational  effectiveness  of  our  internal  controls  over  financial  reporting  were  evaluated  using  the  control 
framework issued by the Committee of Sponsoring Organizations of the Treadway Commission on Internal Control 
–  Integrated  Framework  (2013).  The  evaluation  included  documentation  review,  enquiries,  testing  and  other 
procedures considered by management to be appropriate. In accordance with NI 52-109, the CEO and CFO have 
concluded  that  the  internal  controls  over  financial  reporting    were  designed  and  operating  effectively,  as  at 
December 31, 2020.  

Material Changes to Internal Controls over Financial Reporting 

There have been no material changes in the Company’s internal control over financial reporting during the period 
beginning on January 1, 2020 and ending on December 31, 2020 that materially affected, or are reasonably likely 
to materially affect, the Company’s internal control over financial reporting.  

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RISKS RELATING TO THE BUSINESS 

The  following  discussion  addresses  the  more  significant  risk  factors  relating  to  the  business.  For  a  detailed 
discussion of all risk factors relating to the business, refer to the Company’s most recently filed Annual Information 
Form dated March 9, 2021 which is available through the System for Electronic Document Analysis and Retrieval 
(“SEDAR”) at www.sedar.com. Readers are also encouraged to review the “Forward-Looking Information” section 
of this MD&A. 

Ability to Hire and Retain Qualified and Capable Personnel 

The  success  of  Bird  is  highly  influenced  by  the  efforts  of  key  management,  technical,  project  and  business 
development personnel. The loss of the services of any of Bird’s key management personnel could negatively 
impact  Bird.  The  future  success  of  Bird  also  depends  heavily  on  its  ability  to  attract,  retain  and  develop  high-
performing personnel in all areas of its operations.  

Most firms throughout the construction industry face this challenge and, accordingly, competition for professional 
staff is intense. If Bird ceases to be seen by current and prospective employees as an attractive place to work, it 
could experience difficulty in hiring and retaining an adequate level of qualified staff. This could have an adverse 
effect on current operations of Bird and would limit its prospects and impair its future success. 

Maintaining Safe Work Sites 

Despite the Company’s efforts to minimize the risk of safety incidents, they can occur from time to time and, if and 
when they do, the impact on Bird can be significant. Bird’s success as a general contractor is highly dependent 
on its ability to keep its construction work sites and offices safe and any failure to do so can have serious impact 
on the personal safety of its employees and others. In addition, it can expose Bird to contract termination, fines, 
regulatory sanctions or even criminal prosecution.  

Bird’s  safety  record  and  worksite  safety  practices  also  have  a  direct  bearing  on  its  ability  to  secure  work, 
particularly in the industrial sector. Certain clients will not engage particular contractors to perform work if their 
safety practices do not conform to predetermined standards or if the general contractor has an unacceptably high 
incidence of safety infractions or incidents.  

Bird adheres to very rigorous safety policies and procedures which are continually reinforced on its work sites and 
offices. Management is not aware of any pending health and safety legislation or prior incidents which would be 
likely  to  have  a  material  impact  on  any  of  Bird’s  operations,  capital  expenditure  requirements,  or  competitive 
position. Nevertheless, there can be no guarantee with respect to the impact of future legislation or incidents. 

Global Pandemics 

On  January  30,  2020,  the  World  Health  Organization  declared  the  COVID-19  outbreak  to  be  a  public  health 
emergency of international concern, and on March 11, 2020, COVID-19 was declared to be a pandemic. Since 
that time the sweeping impacts of the virus and the various countermeasures instituted by governments across 
the globe and  at all levels have had significant and unparalleled effects on the  global  economy and society in 
general.  The  operations  of  the  Company  are  highly  sensitive  to  such  sweeping  impacts  and  risks.  A  global 
pandemic can result in widespread illnesses and even deaths, can impact the health of the Company’s workforce 
and can prevent the Company from being able to carry on its operations whether due to direct impacts or indirect 
impacts through its customers and suppliers. These impacts can severely limit the Company’s ability to operate 
and to generate revenues or cash flows, while its ability to eliminate or reduce costs during such times would be 
limited.  In  such  circumstances,  the  Company  could  suffer  significant  financial  losses  and  a  deterioration  in  its 
creditworthiness and therefore have a material adverse effect on the Company. 

Economy and Cyclicality 

Activity within the construction industry is generally tied to the state of the economy. Thus, in periods of strong 
economic growth, capital spending will generally increase and there will be more and better quality opportunities 

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available within the construction industry. Investment decisions by our clients are based on long-term views of the 
economic viability of their current and future projects, sometimes based upon the clients’ view of the long-term 
prices  of  commodities  which  are  influenced  by  many  factors.  If  our  clients’  outlook  for  their  current  and  future 
projects is not favourable, this may lead them to delay, reduce or cancel capital project spending and may make 
them more sensitive to construction costs. A prolonged downturn in the economy could  impact Bird’s ability to 
generate new business or maintain a Backlog of contracts with acceptable margins to sustain Bird through such 
downturns. 

As noted above, Bird attempts to insulate itself in various ways from the effects of negative economic conditions 
through  diversification  of  the  sources  of  the  Company’s  earnings;  however,  there  is  no  assurance  that  these 
methods will be effective in insulating Bird from a downturn in the economy. Furthermore, as a result of increased 
demand  in  certain  regions  or  industry  sectors,  the  Company  has,  in  the  past,  earned  favourable  margins  on 
particular projects. There is also no assurance that favourable margins that may have been generated on historical 
contracts can be generated in the future.   

The Company has a 50% interest in Stack, which is based in China. There is uncertainty around how the recent 
geopolitical tensions between China and Canada may affect the Company’s investment. 

In addition, there is uncertainty around how the public health crisis created by COVID-19 pandemic may affect the 
Company, including our contractual commitments, supply chain and labour force. Generally, to the extent that a 
severe  public  health  emergency  negatively  affects  the  economy  due  to  availability  of  labour  or  impacts  to  the 
supply chain, Bird’s business may also be affected. 

Design Risks 

While many contracts entered into by Bird are for construction or construction services only, certain contracts are 
undertaken on a design-build basis, under which Bird is responsible for both design and construction of the project, 
which adds design risk assumed by Bird. While Bird subcontracts all of the design scope in such design-build 
contracts to reputable designers, there is generally not a full transfer of design-related risks. These risks include 
design development and potential resulting scope creep, delays in the design process that may adversely affect 
the overall project schedule, and design errors and omissions.  

To manage these risks, Bird manages and oversees the design process, coordinates the design deliverables with 
the construction process and, for significant design-build projects, purchases errors and omissions insurance. 

Ability to Secure Work 

Bird generally secures new contracts either through a competitive bid process or through negotiation. Awards in 
both the public and private sectors are generally based upon price, but are also influenced and sometimes formally 
based  on  other  factors,  such  as  the  level  of  services  offered,  safety  record,  construction  schedule,  design  (if 
applicable),  project personnel, the consortium, joint venture and subcontractor team, prior experience  with the 
prospective client and/or the type of project, and financial strength including the ability to provide bonds and other 
contract security.  

In order to be afforded an opportunity to bid for large projects and in the PPP market, a strong balance sheet 
measured in terms of an adequate level of working capital and equity is typically required. Bird operates in markets 
that are highly competitive and there is constant pressure to find and maintain a competitive advantage. In the 
current economic climate, competition is intense. This presents significant challenges for the Company. If those 
competitive challenges are not met, Bird’s client base could be eroded or it could experience an overall reduction 
in profits. 

A decline in demand for Bird’s services from the private sector could have an adverse impact on the Company if 
that business could not  be replaced within  the public sector.  A  portion of Bird’s construction  activity relates to 
government-funded institutional projects. Any reduction in demand for Bird’s services by the public sector, whether 
as a result of funding constraints, changing political priorities or delays in projects caused by elections or other 

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factors, could have an adverse impact on the Company if that business could not be replaced within the private 
sector.  

Government-funded  projects also typically have  long  and sometimes  unpredictable  lead times associated  with 
government review and approval. The time delays associated with this process can constitute a risk to general 
contractors pursuing these projects. Certain government-funded projects, particularly PPP and alternative finance 
projects, may also require significant bid costs which can only be recovered if Bird is the successful bidder. A 
number of governments in Canada have procured a significant value of projects under a PPP and/or alternative 
finance  contract  format,  which  is  an  attractive  market  for  the  Company.  A  reduction  in  the  popularity  of  this 
procurement method or difficulties in obtaining financing for these projects would have negative consequences 
for Bird. 

Performance of Subcontractors 

Successful  completion  of  a  contract  by  Bird  depends,  in  large  part,  on  the  satisfactory  performance  of  its 
subcontractors who are engaged to complete the various components of the work. Subcontractor defaults tend to 
increase during depressed market conditions. If subcontractors fail to satisfactorily perform their portion of  the 
work, Bird may be required to engage alternate subcontractors to complete the work and may incur additional 
costs. This can result in reduced profits or, in some cases, significant losses on the contract and possible damage 
to Bird’s reputation.  

In addition, the ability of Bird to bid for and successfully complete projects is, in part, dependent on the availability 
of qualified subcontractors and trades people. Depending on the value of a subcontractor’s work, Bird may require 
some  form  of  performance  security  and  achieves  this  through  the  use  of  surety  bonds,  subcontractor  default 
insurance or other forms of security from the subcontractor to mitigate Bird’s exposure to the risks associated with 
the subcontractor’s performance and completion.  A  significant shortage of qualified subcontractors and trades 
people or the bankruptcy of a subcontractor could have a material impact on Bird’s financial condition and results 
of operations. 

Accuracy of Cost to Complete Estimates 

As Bird performs each construction contract, costs are continuously monitored against the original cost estimates. 
On at least a quarterly basis, a detailed estimate of the costs to complete a contract is compiled by Bird. These 
estimates are an integral part of Bird’s process for determining construction revenues and profits and depend on 
cost data collected over the duration of the project as well as the judgments of Bird’s field and office personnel. 
To the extent that the costs to complete estimates are based on inaccurate or incomplete information, or on faulty 
judgments, the accuracy of reported construction revenues and profits can be compromised. Bird has adopted 
many internal control policies and procedures aimed at mitigating exposure to this risk. 

Competitive Factors 

Bird competes with many international, national, regional and local construction firms.  Competitors often enjoy 
advantages  in  a  particular  market  that  Bird  does  not  have,  or  they  may  have  more  experience  or  a  better 
relationship with a particular client.  On any given contract bid or negotiation, Bird will attempt to assess the level 
of competitive pressure it may face, and it will attempt to neutralize or overcome any perceived advantage that its 
competitors have. Depending on this assessment, Bird will decide whether or not to pursue a contract.  In addition, 
this assessment bears directly on decisions that Bird will make, including what level of profit can be incorporated 
into its contract price and what personnel should be assigned to the contract.  The accuracy of this assessment 
and the ability of Bird to respond to competitive factors affect Bird’s success in securing new contracts and its 
profitability on contracts that it does secure. 

Estimating Costs and Schedules/Assessing Contract Risks 

The price for most contracts performed by Bird is based, in part, on cost and schedule estimates that are subject 
to a number of assumptions.  Erroneous assumptions can result in an incorrect assessment of risks associated 

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with a contract or estimates of project costs and schedules that are in error, potentially resulting in lower than 
anticipated  profit  or  significant  loss.    All  significant  cost  and  schedule  estimates  are  reviewed  by  senior 
management prior to tender submission in an attempt to mitigate these risks. 

Adjustments and Cancellations of Backlog 

The performance of the Company in a period depends significantly on the contribution from projects in its Backlog. 
There can be no assurance that the revenues or profits included in Backlog at any point in time will be realized. 
Contract suspensions, reductions and cancellations, which are beyond the control of Bird, do occur from time-to-
time in the construction industry. Customers may have the right to suspend, cancel or reduce the scope of their 
contracts with Bird and, though Bird generally has a contractual right to be reimbursed for certain costs, it typically 
has no contractual rights to the total revenue or profit that was expected to be derived from such projects. These 
reductions could have a material adverse impact on future revenues and profitability. 

PPP Project Risk 

Bird is selective in the PPP market. Bird’s role in these projects is typically to provide design-build services to a 
concession  that  is  formed  to  provide  design,  construction,  financing,  and  management  and/or  operations  to  a 
public authority. Typical in the design-build contract format are performance guarantees and design-build risks. 
Moreover, the performance guarantees on PPP projects often include responsibility for the energy performance 
of the facility and achievement of environmental standards. If Bird fails to meet the required standards, it may be 
liable for substantial penalties and damages.  

The  PPP  design-build  contracts  entered  into  by  Bird  also  typically  require  Bird  to  pay  significant  liquidated 
damages and/or other penalties and damages if the projects are not completed on schedule.    

The PPP procurement model also typically results in the transfer of certain risks to the contractor beyond what 
would  be  the  case  for  a  similar  facility  under  a  conventionally  non-PPP  procurement  model.  These  include 
responsibility and potential liability for matters such as changes in law and certain force majeure and delay events. 
In addition, if Bird’s contract was terminated for cause, the Company would be exposed to substantial liability for 
breakage costs to the concession and its lenders.  

The security required to support the obligations that the Company undertakes on these projects typically includes 
substantial letters of credit which may be drawn upon in the event the Company fails to meet its obligations.  

Work Stoppages, Strikes and Lockouts 

Bird is signatory to a number of collective bargaining agreements. Future negotiation of these collective bargaining 
agreements  could  increase  Bird’s  operating  expenses  and  reduce  profits  as  a  result  of  increased  wages  and 
benefits. Failure to come to an agreement in these collective bargaining negotiations or those of its subcontractors 
and suppliers or government agencies could result in strikes, work stoppages, lockouts or other work action, and 
increased costs resulting from delays on construction projects. A strike or other work stoppage is disruptive to 
Bird’s operations and could adversely affect portions of its business, financial position, results of operations and 
cash flows. 

Information Systems and Cyber-security Risk 

The Company relies  on information technology to manage,  process, store and  transmit electronic  information.  
Complete, accurate, available and secure information is vital to the Company’s operations and any compromise 
in such information could result in improper decision making, inaccurate or delayed operational and/or financial 
reporting,  delayed  resolution  to  problems,  breach  of  privacy  and/or  unintended  disclosure  of  confidential 
information. Failure in the completeness, accuracy, availability or security of the Company’s information systems, 
the risk of system interruption or failure during system upgrades or implementation, or a breach of data security 
could adversely affect the Company’s operations and financial results.  

72 | 2020 Management Discussion and Analysis 

72

2020 Management’s Discussion and Analysis

 
 
 
 
 
In  addition,  cyber-security  incidents  relating  to  the  Company’s  information  technology  systems  may  disrupt 
operations and impact operating results. The COVID-19 pandemic in 2020 has caused an elevated risk and threat 
actors may attempt to exploit businesses while there is general instability during the COVID-19 pandemic. 

Cyber-security incidents may occur from a range of techniques, from phishing or hacking attacks to sophisticated 
malware,  hardware  or  network  attacks.  While  the  Company  has  implemented  systems,  policies,  procedures, 
practices, hardware and backups designed to prevent and limit the effect of cyber-security attacks, there can be 
no assurance that these measures will be sufficient to prevent, detect or address the attacks in a timely matter or 
at  all.  A  successful  cyber-attack  may  allow  unauthorized  interception,  destruction,  use  or  dissemination  of  the 
Company’s  confidential  information,  which  could  have  a  material  adverse  effect  on  the  business.  In  the  fall  of 
2019,  Bird  Construction  responded  to  a  cyber  incident  that  resulted  in  the  encryption  of  Company  files.  Bird 
continued  to  function  with  no  business  impact,  as  management  worked  with  leading  cyber  security  experts  to 
restore access to the affected files. At the time, the Company disclosed the incident on our website and notified 
appropriate authorities. 

Integration Risk 

With  the  completion  of  the  Stuart  Olson  transaction,  integration  will  be  key  to  gaining  the  cost,  revenue  and 
strategic  synergies  anticipated.  Failure  to  adequately  address  differences  in  technology,  culture,  customers, 
projects, or other issues could negatively affect financial performance. 

Climate Change Risk  

Risks in Transitioning to a Lower Carbon Economy 

The transition to a lower-carbon economy has the potential to be disruptive to traditional business models and 
investment strategies. The Company’s private and/or public-sector clients may shift their infrastructure priorities 
due to changes in project funding or public perception of sustainable projects. This risk can be mitigated to an 
extent  by  identifying  changing  market  demands  to  offset  lower  demand  in  some  sectors  with  opportunities  in 
others, forming strategic partnerships and pursuing sustainable innovations.  

Government action to address climate change  may involve economic instruments such as carbon and  energy  
consumption  taxes  as  well  as  restrictions  on  economic  sectors,  such  as  cap-and-trade  and  more  stringent 
regulation  of  greenhouse  gas  emissions  that  could  also  impact  the  Company’s  current  or  potential  clients 
operating in industries that extract, distribute and transport fossil fuels.  

Financial Risks 

As  new  climate  change  measures  are  introduced  or  strengthened,  the  Company’s  cost  of  business,  including 
insurance  premiums,  may  increase,  and  the  Company  may  incur  expenses  related  to  complying  with 
environmental regulations and policies in countries or regions where it does business. Such costs may include 
purchasing  new  equipment  to  reduce  emissions  to  comply  with  new  regulatory  standards  or  to  mitigate  the 
financial impact of different forms of carbon pricing. In addition, the Company may incur costs related to engaging 
with governments, regulators and industry organizations for new mandates on infrastructure projects, proactively 
and  regularly  monitoring  regulatory  trends  and  implementing  adequate  compliance  processes.  Although  the 
Company intends to actively monitor all applicable climate change laws and regulations and to fully comply with 
them, and to be proactive in promoting and supporting climate change mitigation actions, inadvertent compliance 
shortfalls could result in penalties and reputational damage that may impair the Company's future prospects.  

Market and Reputational Risk 

Investors and other stakeholders in Canada and worldwide are becoming more attuned to climate change action 
and sustainability matters, including the efforts made by issuers to reduce their carbon footprint. The Company’s 
reputation may be harmed if it is not perceived by its stakeholders to be sincere in its sustainability commitment 
and its long-term results may be impacted as a result. In addition, The Company’s approach to climate change 
issues may increasingly influence stakeholders’ views of the company in relation to its peers and their investment 
decisions.   

Weather Related Risks 

73 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

73

 
 
 
 
 
Weather Related Risks 

Many  of  the  Company’s  construction  activities  are  performed  outdoors.  The  probability  and  unpredictability  of 
extreme weather events and other associated incidents may continue to increase due to climate change and we 
may  continue  to  see  longer-term  shifts  in  climate  patterns.  Although  weather  risk  may  be  mitigated  through 
contractual terms or insurance, construction projects  are susceptible to delays as a result of extended periods of 
poor  weather,  which  can  have  an  adverse  effect  on    profitability  arising  from  either  late  completion  penalties 
imposed by the contract or from the incremental costs  arising from loss of productivity, compressed schedules, 
or from overtime work utilized to offset the time lost  due to adverse weather and additional costs to modify means 
and methods to perform work in unanticipated weather. 

74

2020 Management’s Discussion and Analysis

 
TERMINOLOGY & NON-GAAP MEASURES 

Terminology 

Throughout  this  report,  management  uses  the  following  terms  that  may  not  be  comparable  with  similar  terms 
presented by other companies and require definition:  

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

"Backlog" (also referred to in the construction industry as "work on hand") is the total value of all contracts 
awarded to the Company, less the total value of work completed on these contracts as of the date of the most 
recently completed quarter. This includes all contracts that have been awarded to the Company whether the 
work  has  commenced  or  will  commence  in  the  normal  course.  It  includes  all  the  Company’s  remaining 
performance obligations in its contracts with its clients, including work orders issued from MSAs related to 
MRO services. It does not include amounts for variable consideration that are constrained, agency relationship 
construction  management  projects,  and  estimated  future  work  orders  to  be  performed  as  part  of  master 
services agreements. The Company’s Backlog equates to the Company’s remaining performance obligations 
as at December 31, 2020 and December 31, 2019; refer to Note 10 of the December 31, 2020 consolidated 
financial statements. 

“Pending Backlog" is the total potential revenue of awarded but not contracted projects including where the 
Company has been named preferred proponent, where a contract has not been executed and where the letter 
of  intent  or  agreement  received  is  non-binding.  It  may  also  include  amounts  for  agency  relationship 
construction  management  projects,  pre-construction  activities  and  estimated  future  work  orders  to  be 
performed as part of MSAs. Management does not provide any assurance that a contract will be finalized, or 
revenue  recognized  in  the  future.  Management  uses  Pending  Backlog  to  assess  the  future  operating 
performance of its business. Management believes that investors and analysts use this measure, as it may 
provide predictive value to assess the ongoing operations of the business and a more consistent comparison 
between financial reporting periods. Pending Backlog cannot be reconciled to any IFRS measure. 

"Gross Profit Percentage" is the percentage derived by dividing gross profit by construction revenue. Gross 
profit is calculated by subtracting construction costs from construction revenue.  Management uses Gross 
Profit  Percentage  as  a  measure  of  the  profitability  of  the  core  operations  of  its  operating  groups  and 
consolidated business.  

"Lost Time Incident Frequency" or “LTI Frequency” is the  number of  lost time incidents recorded per 
200,000 person-hours of work by Bird employees. 

75 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

75

 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Measures 

Throughout this MD&A certain measures are used that, while common in the construction industry, do not have a 
standardized meaning prescribed by IFRS and are considered non-GAAP measures. The non-GAAP measures 
used  are:  Adjusted  Earnings,  Adjusted  Earnings  Per  Share,  Adjusted  EBITDA  and  Adjusted  EBITDA  Margin. 
Therefore, these measures may not be comparable with similar measures presented by other companies. 

(cid:120) 

“Adjusted Earnings” is defined as IFRS net income excluding asset impairments, acquisition, integration 
and  restructuring  (as  defined  in  accordance  with  IFRS)  costs  and  the  income  tax  effect  of  these  costs. 
Management uses Adjusted Earnings to assess the operating performance of the business. These additional 
adjustments are made to exclude items of an unusual nature that are not reflective of ongoing operations. 
Management believes that investors and analysts use these measures, as they may provide predictive value 
to assess the ongoing operations of the business and are a more consistent comparison between financial 
reporting periods. 

ANNUAL ADJUSTED EARNINGS
(in thousands of Canadian dollars, except per share amounts)

Net income

Add: Acquisition and integration costs

Add: Restructuring costs (1)

Income tax effect of the above costs

Adjusted Earnings

Adjusted Earnings Per Share (2)

2020

2019

2018

$

36,103

$

9,484

$

(1,013)

7,236

-

(1,760)

41,579

0.92

$

$

$

$

-

-

-

-

-

-

9,484

0.22

$

$

(1,013)

(0.02)

Notes
(1) Restructuring costs as defined in accordance with IFRS.
(2) Calculated as Adjusted Earnings divided by basic weighted average shares.

QUARTERLY ADJUSTED EARNINGS
(in thousands of Canadian dollars, except per share amounts)

Net income

Add: Acquisition and integration costs

Add: Restructuring costs (1)

Income tax effect of the above costs

Adjusted Earnings

Adjusted Earnings Per Share (2)

For the three months ended December 31,

2020

2019

20,534

$

8,167

2,125

-

(1,133)

21,526

$

0.41

$

-

-

-

8,167

0.19

$

$

$

Notes
(1) Restructuring costs as defined in accordance with IFRS.
(2) Calculated as Adjusted Earnings divided by basic weighted average shares.

76 | 2020 Management Discussion and Analysis 

76

2020 Management’s Discussion and Analysis

 
 
 
 
 
        
          
         
          
              
              
              
              
              
         
              
              
        
          
         
            
            
           
 
 
 
                       
                       
                         
                           
                            
                           
                       
                           
                       
                       
                           
                         
 
 
 
(cid:120) 

(cid:120) 

“Adjusted Earnings Per Share” is calculated by dividing Adjusted Earnings by the basic weighted average 
number of shares. 

“Adjusted EBITDA” represents earnings before taxes, interest, depreciation and amortization, finance and 
other  costs,  finance  income,  asset  impairment  charges,  gain  or  loss  on  sale  of  property  and  equipment, 
restructuring and severance costs outside of normal course, and acquisition, integration and restructuring (as 
defined in accordance with IFRS) costs. Adjusted EBITDA is a common financial measure used by investors, 
analysts and lenders as an indicator of cash operating performance, as well as a valuation metric and as a 
measure of a company’s ability to incur and service debt. The calculation of adjusted EBITDA excludes items 
that  do  not  reflect  cash  flows  of  the  business  or  continuing  operations,  including  impairment  charges, 
restructuring  charges,  and  acquisition  and  integration  charges,  as  Management  believes  that  these  items 
should not be reflected in a metric used for valuation and debt servicing evaluation purposes. 

ANNUAL ADJUSTED EBITDA
(in thousands of Canadian dollars, except percentage amounts)

Income from operations
Add:   Depreciation and amortization
Add:   Loss (gain) on sale of property and equipment
Add:   Restructuring costs (1)
Add:   Restructuring and severance costs (2)
Add:   Acquisition and Integration costs

Adjusted EBITDA

Adjusted EBITDA Margin (3)

2020

2019

2018

$

$

55,315
21,702
(2,359)

$

14,921
15,814
(1,346)

551
11,236
(873)

-

43
7,236

-

2,903
-

-

-
-

$

81,937

$

32,292

$

10,914

5.5%

2.4%

0.8%

Notes
(1) Restructuring costs as defined in accordance with IFRS.
(2) Restructuring and severance costs that did not meet the criteria to be classified under restructuring costs as defined in accordance with IFRS.
(3) Calculated as Adjusted EBITDA divided by Revenue.

QUARTERLY ADJUSTED EBITDA
(in thousands of Canadian dollars, except percentage amounts)

Income from operations
Add:   Depreciation and amortization
Add:   Loss (gain) on sale of property and equipment
Add:   Restructuring costs (1)
Add:   Restructuring and severance costs (2)
Add:   Acquisition and Integration costs

Adjusted EBITDA

Adjusted EBITDA Margin (3)

Notes
(1) Restructuring costs as defined in accordance with IFRS.

For the three months ended December 31,

2020

2019

$

$

$

28,523
9,959
(639)

-

43
2,125

10,821
4,468
(255)

-

978
-

40,011

$

16,012

7.2%

3.8%

(2) Restructuring and severance costs that did not meet the criteria to be classified under restructuring costs as defined in accordance with IFRS.
(3) Calculated as Adjusted EBITDA divided by Revenue.

(cid:120) 

“Adjusted EBITDA Margin” is the percentage derived by dividing Adjusted EBITDA by construction revenue. 

77 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

77

 
 
 
 
 
      
      
           
      
      
      
       
       
          
            
            
            
             
        
            
        
            
            
      
      
      
 
 
 
                     
                     
                       
                       
                         
                         
                           
                           
                            
                          
                       
                           
                     
                     
 
 
  
FORWARD-LOOKING INFORMATION 

This  Annual  Report  and  MD&A  contains  forward-looking  statements  and  information  ("forward-looking 
statements")  within  the  meaning  of  applicable  Canadian  securities  laws.  The  forward-looking  statements  are 
based on the expectations, estimates and projections of management of Bird as of March 9, 2021 unless otherwise 
stated.  The  use  of  any  of  the  words  "believe",  "expect",  "anticipate",  "contemplate",  "target",  "plan",  "intends", 
"continue", "may", "will", "should" and similar expressions are intended to identify forward- looking statements. 
More particularly and without limitation, this news release contains forward-looking statements concerning: the 
anticipated benefits of the acquisition to Bird, its shareholders and all other stakeholders, including anticipated 
synergies; and the plans and strategic priorities of the combined company. 

In  respect  of  the  forward-looking  statements  concerning  the  anticipated  benefits  of  the  acquisition,  Bird  has 
provided such in reliance on certain assumptions that it believes are reasonable at this time, including in respect 
of the combined company's services and anticipated synergies, capital efficiencies and cost- savings. 

Since forward-looking statements address future events and conditions, by their very nature they involve inherent 
risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of 
factors and risks. These include, but are not limited to the risks associated with the industries in which Bird and 
Stuart Olson operate in general such as:  

(cid:120)  Ability to access sufficient capital from 

internal and external sources 

(cid:120)  Ability to secure work 
(cid:120)  Accuracy of cost to complete estimates 
(cid:120)  Adjustments and cancellations of Backlog 
(cid:120)  Changes in legislation, including but not 
limited to tax laws and environmental 
regulations 

(cid:120)  Client concentration 
(cid:120)  Climate change 
(cid:120)  Collection of recognized revenue 
(cid:120)  Commodity price, interest rate and exchange 

rate fluctuations 

(cid:120)  Competition, ethics, and reputational risks 
(cid:120)  Completion and performance guarantees 
(cid:120)  Compliance with environmental laws risks 
(cid:120)  Corporate guarantees and letters of credit 
(cid:120)  Cyber-security risks 
(cid:120)  Default under the Company’s credit facilities 

could result in the suspension of dividends 
(cid:120)  Delays or changes in plans with respect to 

growth projects or capital expenditures, costs 
and expenses 

(cid:120)  Dependence on the public sector 
(cid:120)  Design and design/build risks 
(cid:120)  Economy and cyclicality 
(cid:120)  Estimating costs and schedules/assessing 

contract risks 

(cid:120)  Failure to realize the anticipated benefits of 

business acquisitions including the Stuart 
Olson transaction 
(cid:120)  Global pandemics 
(cid:120)  Health, safety and environmental risks 
(cid:120) 
(cid:120) 
(cid:120) 
(cid:120) 
(cid:120)  Labour matters 
(cid:120)  Litigation risk 
(cid:120)  Loss of key management; ability to hire and 
retain qualified and capable personnel 

Industry and inherent project delivery risks 
Insurance risk 
Internal and disclosure controls 
Joint venture risk 

(cid:120)  Maintaining safe worksites 
(cid:120)  Operational risks  
(cid:120)  Payment of dividends 
(cid:120)  Performance bonds and contract security 
(cid:120)  Potential for non-payment and credit risk and 

ongoing financing availability 
(cid:120)  Public Private Partnerships equity 

investments 

(cid:120)  Public Private Partnerships project risk 
(cid:120)  Quality assurance and quality control 
(cid:120)  Regional concentration 
(cid:120)  Regulations 
(cid:120)  Repayment of credit facility 
(cid:120)  Subcontractor performance 
(cid:120)  Unanticipated shutdowns, work stoppages, 

(cid:120)  Failure of clients to obtain required permits 

and licenses 

strikes and lockouts 
(cid:120)  Volatility of market trading 

78 | 2020 Management Discussion and Analysis 

78

2020 Management’s Discussion and Analysis

 
 
 
 
 
 
 
 
 
The forward-looking statements  in this  Annual Report and MD&A should  not be interpreted as  providing  a full 
assessment or reflection of the unprecedented impacts of the recent COVID-19 pandemic ("COVID-19") and the 
resulting indirect global and regional economic impacts. 

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors 
that could affect the operations or financial results of the parties, and the combined company, including any risk 
factors  related  to  COVID-19,  are  included  in  reports  on  file  with  applicable  securities  regulatory  authorities, 
including but not limited to; Stuart Olson's Annual Information Form for the year ended December 31, 2019 and 
most recently filed Management’s Discussion and Analysis and Bird's Annual Information Form for the year ended 
December 31, 2020, each of which may be accessed on Stuart Olson's and Bird's SEDAR profile, respectively, 
at www.sedar.com. 

The forward-looking statements contained in this Annual Report and MD&A are made as of the date hereof and 
the  parties  undertake  no  obligation  to  update  publicly  or  revise  any  forward-looking  statements,  whether  as  a 
result of new information, future events or otherwise, unless so required by applicable securities laws. 

79 | 2020 Management Discussion and Analysis 

2020 Management’s Discussion and Analysis

79

 
 
 
 
 
 
2020

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

Management’s Responsibility for Financial Reporting

The management of Bird Construction Inc. (the “Company”) is responsible for the preparation and integrity of the 
accompanying consolidated financial statements. These consolidated financial statements have been prepared in 
accordance with International Financial Reporting Standards (“IFRS”) and includes certain estimates that reflect 
management’s best judgement.  

Management maintains appropriate systems of internal control.  Policies and procedures are designed to provide 
reasonable assurance that transactions are properly authorized, assets are safeguarded and financial records 
are properly maintained to provide reliable information for the preparation of financial statements.

The Board of Directors has reviewed and approved the consolidated financial statements.  The Board fulfills its 
responsibility in this regard through its Audit Committee. The Audit Committee is composed entirely of independent 
Directors and the members are financially literate. The Audit Committee meets regularly with Management and the 
external  auditors  to  discuss  reporting  and  control  issues  and  ensures  each  party  is  properly  discharging  its 
responsibilities. 

The consolidated financial statements have been audited by KPMG LLP, Chartered Professional Accountants, in 
accordance with Canadian generally accepted auditing standards on behalf of the shareholders.

Terrance  L. McKibbon

President & Chief Executive Officer

Wayne R. Gingrich

Chief Financial Officer

March 9, 2021

Annual 2020 Consolidated Financial Statements

83

KPMG LLP
1900 - 360 Main Street
Winnipeg  MB
R3C 3Z3

Telephone  (204) 957-1770
Fax  (204) 957-0808
www.kpmg.ca

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Bird Construction Inc.

Opinion

We have audited the consolidated financial statements of Bird Construction Inc. (the Entity), which comprise the consolidated 

statements  of  financial  position  as  at  December  31,  2020  and  December  31,  2019, the  consolidated  statements  of  income, 

comprehensive  income,  changes  in  equity  and  cash  flows  for  the  years  then  ended,  and  notes  to  the  financial  statements, 

including a summary of significant accounting policies (hereinafter referred to as the “financial statements”). 

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position 

of the Entity as at December 31, 2020 and December 31, 2019, and its consolidated financial performance and its consolidated 

cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those 

standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our 

auditors’ report.

We  are  independent  of  the  Entity  in  accordance  with  the  ethical  requirements  that  are  relevant  to  our  audit  of  the  financial 

statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial 

statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the financial 

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 

We have determined the matters described below to be the key audit matters to be communicated in our auditors’ report. 

Estimate  of  costs  to  complete  and  variable  consideration  to  be  received  for  fixed  price  construction 
contracts

Description of the matter

The  Entity  recognizes  revenue  from  contracts  with  customers  in  accordance  with  the  pattern  of  satisfying  the  Entity’s 

performance  obligations  under  a  contract.  In  fiscal  2020,  Entity  recognized  $1,504,432  thousand  in  construction  revenue. 

Revenue from fixed price contracts, which is a significant portion of construction revenue, is recognized using the input method 

with reference to costs incurred. To determine the estimated costs to complete for fixed price construction contracts, assumptions 

and estimates are required to evaluate matters related to schedule, material and labour costs, labour productivity, and changes 

to contract cope and subcontractor costs. Change orders may be issued by customers to modify the original contract scope of 

work or conditions, and there may be disputes or claims regarding additional amounts owing. 

© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English 
company limited by guarantee. All rights reserved.

84

Annual 2020 Consolidated Financial Statements

                        
Claims against customers for variable consideration due to delays, scope changes, or other matters are assessed under the 

Entity’s revenue recognition policy, which requires significant judgment. 

Why the matter is a key audit matter

We  identified  the  evaluation  of  the  estimate  of  costs  to  complete  and  variable  consideration  to  be  received  for  fixed  price 

construction contracts as a key audit matter. The evaluation of the estimated costs to complete and variable consideration to be 

received for fixed price construction contracts involved significant auditor judgment to evaluate the results of audit procedures, 

given the significant judgment applied by management in the determination of these estimates.

How the matter was addressed in our audit

The primary procedures we performed to address this key audit matter included the following:

We  evaluated  the  design  and  implementation,  and  tested  the  operating  effectiveness,  of  certain  internal  controls  within  the 

Entity’s revenue recognition process. This included a control related to the review of estimated costs to complete for construction 

contracts at year-end. 

We evaluated the Entity’s ability to estimate costs to complete and variable consideration by comparing to the final costs to

complete and variable consideration received for contracts completed in fiscal 2020 and estimated in the prior period.

For a selection of fixed price construction contracts at December 31, 2020, we evaluated the appropriateness of the Entity’s 

determination of costs to complete and variable consideration to be received by performing the following:

(cid:120)

(cid:120)

(cid:120)

Agreed estimated costs to complete to appropriate supporting documentation and key contractual terms back to signed 

contracts

Performed procedures to compare the estimated total costs to actual costs incurred to date

Inquired with relevant operational Entity personnel to gain an understanding of the status of project activities and factors 

impacting the estimate of costs to complete and variable consideration to be received, and corroborated by agreeing to 

appropriate supporting documentation

(cid:120) Determined the reasonableness of any variable consideration recognized as revenue on unbilled change orders or claims 
by  inspecting  change  orders,  directives,  or  other  correspondence  with  customers,  where  applicable;  considering  the 

historical  outcomes  of  previously  settled  claims,  and  corresponding  with  internal  and  external  legal  counsel,  where 

applicable. 

Evaluation of intangible assets resulting from the acquisition of Stuart Olson Inc. 

Description of the matter

We draw attention to notes 3, 4 and note 7 to the financial statements. On September 25, 2020, the Entity acquired all of the

issued and outstanding shares of Stuart Olson Inc. for total consideration of $95,661 thousand In connection with the acquisition, 

the Entity recorded intangible assets with an acquisition date fair value of $25,430 thousand. Significant assumptions used in 

determining the acquisition date fair value for the intangible assets included cash-flow projections and the weighted average 

cost of capital. 

Why the matter is a key audit matter

We identified the evaluation of the acquisition date fair value of intangible assets acquired in the Stuart Olson Inc. acquisition as 

a key audit matter. This matter represented an area of significant risk. Significant auditor judgment and specialized skills and 

knowledge were required in evaluating the audit evidence.  The determination of fair value of intangible assets acquired was 

sensitive to possible changes to the significant assumptions.  

Annual 2020 Consolidated Financial Statements

85

How the matter was addressed in our audit

The primary procedures we performed to address this key audit matter included the following: 

We compared the Entity’s cash-flow projections to Stuart Olson Inc.’s historical actual results. We took into account changes in 

conditions to assess the adjustments or lack of adjustments made in arriving at the cash flow projections. 

We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the weighted average 

cost of capital used by the Entity to discount the cash-flow projections, by comparing it against a weighted average cost of capital 

range that was independently developed using publicly available market data for comparable entities.

Other Information

Management is responsible for the other information. Other information comprises:

(cid:120) Management’s Discussion and Analysis filed with the relevant Canadian Securities Commissions.
(cid:120)

Information, other than the financial statements and the auditors’ report thereon, included in a document likely to be entitled 

“2020 Annual Report”.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of 

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, 

in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge 

obtained in the audit and remain alert for indications that the other information appears to be materially misstated.

We obtained the Management’s Discussion and Analysis filed with the relevant Canadian Securities Commissions as at the date 

of this auditors’ report. If, based on the work we have performed on this other information, we conclude that there is a material 

misstatement of this other information, we are required to report that fact in the auditors’ report.

We have nothing to report in this regard.

The information, other than the financial statements and the auditors’ report thereon, included in a document likely to be entitled 

“2020 Annual Report” is expected to be made available to us after the date of this auditors’ report. If, based on the work we will 

perform on this other information, we conclude that there is a material misstatement of this other information, we are required to 

report that fact to those charged with governance. 

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and 

for such internal control as management determines is necessary to enable the preparation of financial statements that are free 

from material misstatement, whether due to fraud or error.

In  preparing  the  financial  statements,  management  is  responsible  for  assessing  the  Entity’s  ability  to  continue  as  a  going 

concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless 

management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Entity‘s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 

misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian 

generally accepted auditing standards will always detect a material misstatement when it exists.

86

Annual 2020 Consolidated Financial Statements

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably 

be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and 

maintain professional skepticism throughout the audit.

We also:

(cid:120)

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and

perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide 

a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud 

may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

(cid:120) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in 
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

(cid:120)

Evaluate  the  appropriateness  of  accounting  policies  used  and  the  reasonableness  of  accounting  estimates  and  related 

disclosures made by management.

(cid:120) Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit 
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on 

the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw 

attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, 

to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. 

However, future events or conditions may cause the Entity to cease to continue as a going concern.

(cid:120)

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether 

the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

(cid:120) Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

(cid:120)

Provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding 

independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on 

our independence, and where applicable, related safeguards.

(cid:120) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within 
the Group Entity to express an opinion on the financial statements. We are responsible for the direction, supervision and 

performance of the group audit. We remain solely responsible for our audit opinion.

Chartered Professional Accountants

The engagement partner on the audit resulting in this auditors’ report is Austin Abas.

Winnipeg, Canada

March 9, 2021

Annual 2020 Consolidated Financial Statements

87

Bird Construction Inc.
Consolidated Statement of Financial Position
As at December 31, 2020 and 2019
(in thousands of Canadian dollars)

ASSETS

Current assets
Cash and cash equivalents
Accounts receivable
Contract assets
Contract assets - alternative finance projects
Inventory and prepaid expenses
Income taxes recoverable
Other assets
Investments held for sale 
Total current assets

Non-current assets
Other assets
Investments in equity accounted entities
Property and equipment
Right-of-use assets
Deferred income tax asset
Intangible assets
Goodwill
Total non-current assets

TOTAL ASSETS

LIABILITIES 

Current liabilities
Accounts payable
Contract liabilities
Dividends payable to shareholders
Income taxes payable
Non-recourse project financing
Current portion of loans and borrowings
Current portion of right-of-use liabilities
Provisions
Other liabilities
Total current liabilities

Non-current liabilities
Loans and borrowings
Right-of-use liabilities
Deferred income tax liability
Other liabilities
Pension liabilities
Total non-current liabilities

TOTAL LIABILITIES

SHAREHOLDERS' EQUITY

Shareholders' capital
Contributed surplus
Retained earnings
Accumulated other comprehensive income 
Total shareholders' equity

$

$

$

Note

8
9
10
10,11

12
13

12
13
14
15
19
16
17

10

11
18
18
20
21

18
18
19
21
22

24

2020

2019

$

212,068
529,825
60,031
113
8,038
7,484
2,577
-

820,136

13,171
14,710
59,435
61,511
32,253
27,526
33,054
241,660

180,334
413,649
31,018
75,180
3,144
13,083
5,972
6,978
729,358

6,608
10,185
46,016
34,460
11,287
2,484
16,389
127,429

1,061,796

$

856,787

$

490,470
120,054
1,724
20,187
-
8,010
18,748
23,419
2,010
684,622

64,903
59,327
22,956
13,778
3,600
164,564
849,186

108,064
1,956
102,520
70
212,610

419,923
112,126
1,382
6,174
85,374
5,883
8,025
7,763
2,205
648,855

34,738
23,075
13,868
8,531
-
80,212
729,067

42,527
1,956
83,197
40
127,720

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,061,796

$

856,787

The accompanying notes are an integral part of these consolidated financial statements.

Approved on behalf of the Board of Directors  

Paul A. Charette
Chairman of the Board 

Karyn A. Brooks
Audit Committee Chair

88

Annual 2020 Consolidated Financial Statements

     
              
              
              
              
                
                
                     
                
                  
                  
                  
                
                  
                  
                     
                  
              
              
                
                  
                
                
                
                
                
                
                
                
                
                  
                
                
              
              
           
              
              
              
              
              
                  
                  
                
                  
                     
                
                  
                  
                
                  
                
                  
                  
                  
              
              
                
                
                
                
                
                
                
                  
                  
                     
              
                
              
              
              
                
                  
                  
              
                
                       
                       
              
              
           
              
Bird Construction Inc. 
Consolidated Statement of Income  
For the years ended December 31, 2020 and 2019 
(in thousands of Canadian dollars, except per share amounts) 

Construction revenue
Costs of construction
Gross profit

Income from equity accounted investments
General and administrative expenses

Income from operations

Finance income
Finance and other costs

Income before income taxes

Income tax expense

Net income for the period

Basic and diluted earnings per share

Note

2020

2019

10

$

$

1,504,432
1,378,132
126,300

1,376,408
1,305,458
70,950

13

26
27

19

25

$

$

7,792
(78,777)

55,315

1,511
(7,506)

49,320

13,217

36,103

0.80

$

$

2,693
(58,722)

14,921

2,596
(5,558)

11,959

2,475

9,484

0.22

The accompanying notes are an integral part of these consolidated financial statements.

Annual 2020 Consolidated Financial Statements

89

 
 
                  
 
                     
                     
                     
                     
                        
                          
                            
                            
                         
                         
                          
                          
                            
                            
                           
                           
                          
                          
 
                          
                            
                          
                            
                     
                     
Bird Construction Inc. 
Consolidated Statement of Comprehensive Income 
For the years ended December 31, 2020 and 2019 
(in thousands of Canadian dollars) 

Note

2020

Net income for the period
Other comprehensive income (loss) for the period:
Defined benefit plan actuarial gain
Exchange differences on translating equity accounted investments
Foreign currency translation

Deferred tax recovery on other comprehensive income (loss)
Items that may be reclassified to net income in subsequent periods

Total comprehensive income for the period

22
13

$

$

The accompanying notes are an integral part of these consolidated financial statements.

36,103

$

1,540
47
(17)
(371)
1,199

2019

9,484

-

-
-

37

37

37,302

$

9,521

90

Annual 2020 Consolidated Financial Statements

 
 
 
                          
                            
                            
                                
                                 
                                 
                                
                                
                              
                                
                            
                                 
                          
                            
Bird Construction Inc. 
Consolidated Statement of Changes in Equity 
For the years ended December 31, 2020 and 2019 
(in thousands of Canadian dollars, except per share amounts) 

Note

Shareholders' 
capital

Contributed 
surplus

Retained 
earnings

Accumulated 
other 
comprehensive 
income

Total 
equity

Balance at December 31, 2019

$

42,527

$

1,956

$

83,197

$

40

$

127,720

Net income for the period
Other comprehensive income for the period
Total comprehensive income for the period

Contributions by and dividends to owners
Common shares issued on acquisition of Stuart Olson
Dividends declared to shareholders

13, 22

7

Balance at December 31, 2020

Dividends declared per share 

Balance at December 31, 2018
Impact on adoption of IFRS 16
Balance at January 1, 2019

Net income for the period
Other comprehensive income for the period
Total comprehensive income for the period

Contributions by and dividends to owners
Dividends declared to shareholders

$

$

-
-
-

65,537
-
65,537

-
-
-

-
-
-

36,103
1,169
37,272

-
(17,949)
(17,949)

30
30

-

-
-
-

36,103
1,199
37,302

65,537
(17,949)
47,588

108,064

$

1,956

$

102,520

$

70

$

212,610

$

42,527
-
42,527

$

1,956
-
1,956

-
-
-

-
-

-
-
-

-
-

$                  

0.39

$

91,743
(1,448)
90,295

9,484
-
9,484

(16,582)
(16,582)

$

3

3

37
37

-

-

-
-

136,229
(1,448)
134,781

9,484
37
9,521

(16,582)
(16,582)

Balance at December 31, 2019

$

42,527

$

1,956

$

83,197

$

40

$

127,720

Dividends declared per share 

$                  

0.39

The accompanying notes are an integral part of these consolidated financial statements.

Annual 2020 Consolidated Financial Statements

91

 
  
 
                
                  
                
                       
              
                      
                      
                
                      
                
                      
                      
                  
                       
                  
                      
                      
                
                       
                
                
                      
                      
                      
                
                      
                      
               
                      
               
                
                      
               
                      
                
              
                  
              
                       
              
                
                  
                
                         
              
                      
                      
                 
                      
                 
                
                  
                
                         
              
                      
                      
                  
                      
                  
                      
                      
                      
                       
                       
                      
                      
                  
                       
                  
                      
                      
               
                      
               
                      
                      
               
                      
               
                
                  
                
                       
              
Bird Construction Inc. 
Consolidated Statement of Cash Flows 
For the years ended December 31, 2020 and 2019 
(in thousands of Canadian dollars) 

Cash flows from (used in) operating activities
Net income for the period
Items not involving cash:

Amortization
Depreciation
Gain on sale of property and equipment
Income from equity accounted investments
Finance income
Finance and other costs
Deferred compensation plan expense and other
Defined benefit pension plan
Contributions to defined benefit pension plan
Unrealized (gain) loss on investments and other
Income tax expense (recovery)

Cash flows from operations before changes in non-cash working capital

Changes in non-cash working capital relating to operating activities
Interest received
Interest paid
Income taxes paid
Net cash from (used in) operating activities

Cash flows from (used in) investing activities
Investments in equity accounted entities
Capital distributions from equity accounted entities
Proceeds on sale of Investment in equity accounted entities
Additions to property and equipment
Proceeds on sale of property and equipment
Additions to intangible assets
Acquisition of Stuart Olson Inc., net of cash acquired
Proceeds from maturity of short-term investments
Other long-term assets
Net cash used in investing activities

Cash flows from (used in) financing activities:
Proceeds from issue of common shares, net of issue costs
Dividends paid on shares
Proceeds from non-recourse project financing
Repayment of non-recourse project financing
Proceeds from loans and borrowings
Repayment of loans and borrowings
Repayment of right-of-use liabilities
Net cash from (used in) financing activities

Net increase (decrease) in cash and cash equivalents during the period
Effects of foreign exchange on cash balances
Cash and cash equivalents, beginning of the period

Note

2020

2019

$

36,103

$

9,484

16
14,15

13
26
27

22
22

19

30

13
13
13
14
14
16
7

7

11
11
18
18
18

2,370
19,332
(2,359)
(7,792)
(1,511)
7,506
4,699
261
(144)
14
13,217
71,696

69,093
2,037
(7,815)
(6,064)
128,947

(5,088)
5,523
11,034
(12,245)
9,211
(1,982)
(59,960)
-
(392)
(53,899)

39,876
(17,607)
46,782
(131,849)
88,283
(56,658)
(12,110)
(43,283)

31,765
(31)
180,334

873
14,941
(1,346)
(2,693)
(2,596)
5,558
3,156
-
-
349
2,475
30,201

(66,269)
2,521
(3,930)
(599)
(38,076)

-
1,846
-
(13,649)
2,661
(782)
-
1,705
-
(8,219)

-
(16,582)
72,832
-
24,536
(5,113)
(7,615)
68,058

21,763
(349)
158,920

Cash and cash equivalents, end of the period

8

$

212,068

$

180,334

The accompanying notes are an integral part of these consolidated financial statements.

92

Annual 2020 Consolidated Financial Statements

 
 
 
           
             
             
                
           
           
            
            
            
            
            
            
             
             
             
             
                
                 
               
                 
                  
                
           
             
           
           
           
          
             
             
            
            
            
               
         
          
            
                 
             
             
           
                 
          
          
             
             
            
               
          
                 
                 
             
               
                 
          
            
           
                 
          
          
           
           
        
                 
           
           
          
            
          
            
          
           
           
           
                 
               
         
         
         
         
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Table of Contents – Notes to the Consolidated Financial Statements 

1.  Structure of the company ................................................................................................................................ 94 

2.  Basis of preparation ......................................................................................................................................... 94 

3.  Use of estimates and judgements ................................................................................................................... 94 

4.  Significant accounting policies ......................................................................................................................... 97 

5.  New accounting standards, amendments and interpretations adopted ........................................................ 108 

6.  Future accounting changes ........................................................................................................................... 108 

7.  Business combination .................................................................................................................................... 109 

8.  Cash and cash equivalents ........................................................................................................................... 111 

9.  Accounts receivable....................................................................................................................................... 112 

10.  Revenue, contract assets and contract liabilities .......................................................................................... 112 

11.  Alternative finance projects ........................................................................................................................... 114 

12.  Other assets .................................................................................................................................................. 115 

13.  Projects and entities accounted for using the equity method ........................................................................ 116 

14.  Property and equipment ................................................................................................................................ 118 

15.  Right-of-use assets ........................................................................................................................................ 118 

16. 

Intangible assets ............................................................................................................................................ 119 

17.  Goodwill ......................................................................................................................................................... 120 

18.  Loans and borrowings and right-of-use liabilities .......................................................................................... 121 

19. 

Income taxes ................................................................................................................................................. 123 

20.  Provisions ...................................................................................................................................................... 125 

21.  Other liabilities ............................................................................................................................................... 125 

22.  Pension obligations........................................................................................................................................ 125 

23.  Share-based compensation plans ................................................................................................................. 127 

24.  Shareholders’ capital ..................................................................................................................................... 129 

25.  Earnings per share ........................................................................................................................................ 129 

26.  Finance income ............................................................................................................................................. 129 

27.  Finance and other costs ................................................................................................................................ 129 

28.  Personnel costs ............................................................................................................................................. 130 

29.  Government assistance ................................................................................................................................. 130 

30.  Other cash flow information ........................................................................................................................... 130 

31.  Financial instruments ..................................................................................................................................... 131 

32.  Capital management...................................................................................................................................... 135 

33.  Commitments and contingencies .................................................................................................................. 135 

34.  Related party transactions ............................................................................................................................. 136 

35.  Subsequent event .......................................................................................................................................... 137 

Annual 2020 Consolidated Financial Statements

93

 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

1.  Structure of the company 

Bird Construction Inc. (the “Company”) is a corporation incorporated in the province of Ontario, Canada. The 
address of the Company’s registered office is 5700 Explorer Drive, Suite 400, Mississauga, Ontario, Canada. 
The Company’s common shares are traded on the Toronto Stock Exchange under the symbol BDT. 

The  Company  operates  from  coast-to-coast  and  services  all  of  Canada’s  major  geographic  markets.  The 
Company  provides  a  comprehensive  range  of  construction  services  from  new  construction  for  industrial, 
commercial, and institutional markets; to industrial maintenance, repair and operations (“MRO”) services, heavy 
civil construction and contract surface mining; as well as vertical infrastructure including, electrical, mechanical, 
and specialty trades. The Company uses fixed priced, design-build, unit price, cost reimbursable, guaranteed 
upset price, construction management and integrated project delivery (“IPD”) contract delivery methods.  

2.  Basis of preparation 

Statement of compliance 
These  consolidated  financial  statements  (the  “financial  statements”)  have  been  prepared  in  accordance  with 
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board 
(“IASB”). These financial statements were authorized for issue on March 9, 2021 by the Company’s Board of 
Directors. 

Functional and presentation currency 
These  financial  statements  are  presented  in  Canadian  dollars,  which  is  the  Company’s  functional  currency. 
Unless otherwise indicated, all financial information presented has been rounded to the nearest thousand. 

Basis of measurement 
These financial statements have been prepared on a going concern and historical cost basis, except for certain 
financial  assets,  derivative  financial  instruments  and  liabilities  for  cash  settled  share-based  payment 
arrangements which are measured at fair value, as detailed in the accounting policies disclosed in Note 4. 

Segmented results 
Segment results are reviewed by  the  Company’s chief operating decision maker to assess performance  and 
allocate resources within the Company. Management applies judgement in the aggregation of the Company’s 
operating  segments  and  has  determined  that  the  Company  operates  in  one  reportable  segment  being  the 
general  contracting  sector  of  the  construction  industry.  The  Company’s  operating  segments  have  similar 
economic  characteristics  in  that  each  of  the  Company’s  operating  business  units  provides  comparable 
construction services, use similar contracting methods, have similar long term economic prospects, share similar 
cost structures and operate in similar regulatory environments. 

Comparative figures 
Certain comparative figures for the prior period have been reclassified to conform to the presentation adopted in 
the current period. The Company restated certain movements within its reconciliation of contract assets in the 
comparative period (note 10). The Company restated certain comparative balances between categories in the 
composition of its deferred income tax assets and liabilities to align with categorization in the current year to 
better  reflect  the  nature  of  these  balances  considering  the  acquisition  of  Stuart  Olson  (note  19).  There  is  no 
resultant impact on the net income, comprehensive income, cash flow, or financial position of the Company from 
this change. 

3.  Use of estimates and judgements 

The  preparation  of  the  financial  statements  requires  management  to  make  judgements,  estimates  and 
assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, 
assets, liabilities and the disclosure of contingent assets and liabilities at the reporting date.  

94

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Uncertainty about these assumptions and estimates could result in a material adjustment to the carrying amount 
of  an  asset  or  liability  and/or  the  reported  amount  of  revenue  and  expense  in  future  periods.  Estimates  and 
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in 
the period in which the estimates are revised and in any future periods affected. 

Impact of the COVID-19 pandemic 
On March 11, 2020 the World Health Organization (“WHO”) declared COVID-19 a global pandemic (“COVID-19 
pandemic” or “the pandemic”). Since the declaration, the Canadian construction industry has faced uncertainty 
as each provincial government has responded by implementing social and work restrictions to address the public 
health threat. COVID-19, along with the variants of the virus that have emerged, continue to have a significant 
negative impact on the global and Canadian economy and preventative safety measures remain in place and 
continue to vary from province to province as governments respond to fluctuations in case numbers. 

Due to the impact of the COVID-19 pandemic on both current and future market conditions and the economic 
environment,  there  is  significant  uncertainty  and  complexity  in  respect  of  certain  judgements,  estimates  and 
assumptions  used  in  the  preparation  of  these  financial  statements.  These  include  the  amount  of  Canada 
Emergency Wage Subsidy (“CEWS”) the Company has accrued or may qualify for in the future, project timing 
and  progress,  future  contract  awards,  and  collectability  of  accounts  receivable  and  contract  assets.  The 
Company’s operations could be impacted from disruptions to projects, the supply chain and shortages of labour. 
In addition, several projects that were expected to be awarded and secured have been delayed, suspended or 
cancelled,  and  this  could  continue  as  a  result  of  the  pandemic.  The  future  effectiveness  of  the  Company’s 
business continuity plan and various safety and austerity measures implemented is also subject to uncertainty.  

Assets and liabilities acquired in a business combination 
The Company assesses whether an acquisition transaction should be accounted for as an asset acquisition or 
a  business  combination  under  IFRS  3  Business  Combinations.  The  purchase  price  related  to  a  business 
combination is allocated to the underlying acquired assets and liabilities based on their estimated fair value at 
the time of acquisition. The determination of fair value requires the Company to make assumptions, estimates 
and judgements regarding cash flow projections, valuation techniques, economic risk, weighted average cost of 
capital and future events. The measurement of the purchase consideration and allocation process is therefore 
inherently subjective and impacts the amounts assigned to individually identifiable assets and liabilities. As a 
result, the purchase price allocation impacts the Company’s reported assets and liabilities (including the amounts 
allocated  to  intangible  assets  and  goodwill),  and  future  earnings  due  to  the  associated  depreciation  and 
amortization expense along with the required impairment testing. 

Revenue and gross profit recognition 
Construction revenue, construction costs, contract liabilities, and contract assets are based on estimates and 
judgements used in determining contract revenue and including the calculation of estimated costs to complete 
in order to calculate the stage of completion for a particular construction project, depending upon the nature of 
the construction contract, as more fully described in the revenue recognition policy. To determine the estimated 
costs to complete construction contracts, assumptions and estimates are required to evaluate matters related to 
schedule,  material  and labour costs,  labour  productivity, changes  in contract scope  and subcontractor costs. 
Due to the nature of construction activities, estimates can change significantly from one accounting period to the 
next. 

The value of many construction contracts increases over the duration of the construction period. Change orders 
may be issued by customers to modify the original contract scope of work or conditions. In addition, there may 
be  disputes  or  claims  regarding  additional  amounts  owing  as  a  result  of  changes  in  contract  scope,  delays, 
additional work or changed conditions. Construction work related to a change order or claim may proceed, and 
costs may be incurred, in advance of final determination of the value of the change order. Many change orders 
and claims may not be settled until the construction project is complete or subsequent to completion and the 
nature of the relationship with the other party to the claim and the history of success of these claims may impact 
the  associated  revenue  or  cost  recovery.  Claims  against  customers  for  variable  consideration  due  to  factors 
described above are assessed under the Company’s revenue policy, which requires significant judgement. The 

Annual 2020 Consolidated Financial Statements

95

 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

amount of variable consideration that is constrained is the difference between the total claim value and the best 
estimate of recovery. This constrained value is reviewed each reporting period.  

Provisions 
Legal and warranty and other provisions involve the use of estimates. Estimates and assumptions are required 
to determine when to record and how to measure a provision in the financial statements. The outcomes may 
differ  significantly  from  the  estimates  used  in  preparing  the  financial  statements  resulting  in  adjustments  to 
previously reported financial results. 

Impairment of non-financial assets  
Management evaluates property and equipment, intangible assets and right-of-use (“ROU”) assets at the end of 
each reporting period to determine if there are events or circumstances which indicate that the carrying value 
may not be recoverable. Goodwill is tested for impairment annually, or more frequently if events or changes in 
circumstances  indicate  that  the  asset  may  be  impaired.  Impairment  testing  is  performed  by  comparing  the 
recoverable amount of the cash-generating unit ("CGU"), or groups of CGUs to its carrying amount. There is a 
significant amount of uncertainty with respect to the estimate of the recoverable amount given the necessity of 
making  economic  projections  which  employ  the  following  key  assumptions:    future  cash  flows,  growth 
opportunities,  including  economic  risk  assumptions,  and  estimates  of  achieving  key  operating  metrics  and 
drivers,  and  the  discount  rate.  Refer  to  note  17  for  further  details  regarding  the  assumptions  and  estimates 
regarding the Company’s goodwill impairment assessment. 

Measurement of pension obligations  
The  Company’s  obligations  and  expenses  related  to  defined  benefit  (“DB”)  pension  plans,  including 
supplementary  executive  retirement  plans,  are  determined  using  actuarial  valuations  and  are  dependent  on 
many  significant  assumptions.  The  DB  obligations  and  benefit  cost  levels  will  change  as  a  result  of  future 
changes in actuarial methods and assumptions, membership data, plan provisions, legislative rules, and future 
experience gains or  losses, which  have  not  been anticipated at  this time.  Actual experience that differs from 
assumptions will result in gains or losses that will be disclosed in future accounting valuations. Refer to note 22 
for further details regarding the Company’s DB plans as well as a sensitivity analysis of a change in the discount 
rate assumption used in the calculations and the resultant impact to financial results. 

Share-based payments 
Compensation expense accrued for performance share units (“PSU”) is dependent on an adjustment to the final 
number  of  PSU  awards  that  will  eventually  vest  based  on  a  performance  multiplier  that  is  estimated  by 
management and approved by the Board of Directors. Large fluctuations in compensation expense may occur 
due to changes in the underlying share price or revised management estimates of relevant performance factors. 

Leases 
The Company applies judgement in reviewing each of its contractual arrangements to determine whether the 
arrangement contains a lease within the scope of IFRS 16 Leases. Leases that are recognized are subject to 
further management judgement and estimation in various areas specific to the arrangement. In determining the 
lease  term  to  be  recognized,  management  considers  all  facts  and  circumstances  that  create  an  economic 
incentive to exercise an extension option, or not to exercise a termination option. 

Lease liabilities have been estimated using a discount rate equal to the Company-specific incremental borrowing 
rate. This rate represents the rate that the Company would incur to obtain the funds necessary to purchase an 
asset of a similar value, with similar payment terms and security in a similar economic environment. 

Income taxes 
Tax  regulations  and  legislation  are  subject  to  change  and  there  are  differing  interpretations  requiring 
management  judgement.  Deferred  tax  assets  are  recognized  when  it  is  considered  probable  that  deductible 
temporary differences will be recovered in future periods, which requires management judgement. Deferred tax 
liabilities  are  recognized  when  it  is  considered  probable  that  temporary  differences  will  be  payable  to  tax 
authorities in future periods, which requires management judgement. Income tax filings are subject to audits and 

96

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

re-assessments and changes in facts, circumstances and interpretations of tax laws may result in a  material 
increase or  decrease in  the Company’s provision for income taxes. 

4.  Significant accounting policies 

Consolidation 
The financial statements include the accounts of the Company, its subsidiaries and partnerships, as well as its 
pro-rata share of assets, liabilities, revenues, expenses and cash flows from joint operations.  Subsidiaries are 
entities  controlled  by  the  Company.  The  financial  statements  of  subsidiaries  are  included  in  the  financial 
statements from the date that control commences until the date that control ceases. All inter-company balances, 
transactions, revenues and expenses have been eliminated on consolidation. The financial statements include 
the accounts of the following significant subsidiaries:  

Company 

Fully consolidated subsidiaries 

Bird Construction Inc. 
Bird Construction Company Limited 
Bird Construction Company (Limited Partnership) 
Bird Management Ltd. 
Bird Design-Build Limited 
Bird Capital Limited 
Bird Capital Limited Partnership 
Bird Industrial Group Limited 
Bird Design-Build Construction Inc. 
Westrac Resources Ltd. 
Westrac Resources Limited Partnership 
Bird Construction Group (Limited Partnership) 
Bird Construction Group Limited  
Bird General Contractors Ltd. 
Bird Civil et mines Ltee  
Bird Heavy Civil Ltd.  
Nason Contracting Group Ltd. 
Bird Casey House Limited Partnership 
Bird Capital MDC Project Co. Inc. 
Bird Construction Industrial Services Ltd. 
Bird Construction Group Ltd. 
NCGL Industrial Ltd. 
NCGL Construction Ltd. 
BFL Fabricators Ltd. 
Canadian Consulting Group Limited 
Innovative Trenching Solutions Ltd. 
Innovative Trenching Solutions Field Services Ltd. 
Innovative Trenching USA Inc.  
Bird Capital OMP Project Co. Inc. 
Stuart Olson Buildings Ltd.* 
Stuart Olson Industrial Inc.* 
411007 Alberta Ltd.* 
TCC Holdings Inc.* 
The Churchill Corporation* 
Stuart Olson Asset Corp.* 

Proportionately consolidated joint arrangements  

Bird Kiewit Joint Venture 
Pomerleau/O’Connell JV 
Bird – Maple Reinders JV 
Maple Reinders – Bird JV 
Bird – ATCO Joint Venture 

Ownership / Voting Interest 

2020 

100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 

60% 
50% 
50% 
50% 
60% 

2019 

100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
n/a 
100% 
n/a 
n/a 
n/a 
n/a 
n/a 
n/a 

60% 
50% 
50% 
50% 
60% 

Annual 2020 Consolidated Financial Statements

97

 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

CBS Joint Venture 
Chandos Bird Joint Venture 
Acciona Stuart Olson Joint Venture* 
Stuart Olson/Nunavut Ltd.* 
Canem/Plan Group Joint Venture* 
Stuart Olson Industrial Contractors/Andritz Hydro Canada Inc.* 
FCG Construction/Stuart Olson, a Joint Venture* 

* Acquired on September 25, 2020 (note 7) 

42.5% 
50% 
50% 
40% 
50% 
50% 
50% 

42.5% 
50% 
n/a 
n/a 
n/a 
n/a 
n/a 

The  Company  has  invested  in  a  number  of  Public  Private  Partnership  (“PPP”)  concession  ventures,  usually 
holding a minority interest position in the venture. The Company has also invested in the Stack Modular group 
of companies. In these instances, the Company can either exercise significant influence or joint control over the 
financial  and  operational  policies  of  the  venture  (or  investee).  The  Company  uses  the  equity  method  of 
accounting to account for these investments. The investment is recorded as the amount of the initial investment 
adjusted for the pro-rata share of the investee’s earnings less any distributions received from the investment.  

Company 

Equity accounted investment in associates/joint ventures 
Boreal Health Partnership* 
Chinook Resources Management General Partnership 
Harbour City Solutions General Partnership 
Hartland Resource Management General Partnership 
Joint Use Mutual Partnership #1* 
Joint Use Mutual Partnership #2* 
Plenary Infrastructure ERMF GP 
Stack Modular Structures Ltd. 
Stack Modular Structures Hong Kong Limited  
Niagara Falls Entertainment Partners 
Timmiak Construction Limited Partnership  

* Disposed during the year ended December 31, 2020 (note 13) 

Ownership / Voting Interest 

2020 

2019 

n/a 
50%  
20% 
20% 
n/a 
n/a 
10%  
50% 
50% 
20% / 16.2% 
69.99% / 33.33% 

25% 
50%  
20% 
20% 
20% 
20% 
10%  
50% 
50% 
20% / 16.2% 
69.99% / 33.33% 

All of the above subsidiaries, joint arrangements, joint ventures and associates are incorporated or registered in 
Canada except Stack Modular Structure Hong Kong Limited which is incorporated and registered in Hong Kong 
and Innovative Trenching USA Inc which is incorporated and registered in Delaware.  

Revenue recognition 
Contract  revenue  is  recognized  in  the  consolidated  statement  of  income  (the  “statement  of  income”)  in 
accordance  with  the  pattern  of  satisfying  the  Company’s  performance  obligations  under  a  contract.  This 
satisfaction occurs when control of a good or service transfers to the customer. In the majority of the Company’s 
contracts, the customer controls the work in process as evidenced by the right to payment for work performed 
to  date  plus  a  reasonable  profit  to  deliver  products  or  services  that  do  not  have  an  alternative  use  to  the 
Company,  and  the  work  is  performed  on  the  customer’s  property.  Based  on  the  nature  of  these  contractual 
arrangements, control is transferred over time and revenue is recognized over time.  

For each performance obligation satisfied over time, the Company recognizes revenue by measuring progress 
toward complete satisfaction of that performance obligation. Using output or input methods based on the type of 
contract, the Company recognizes revenue in a pattern that reflects the transfer of control of the promised goods 
or  services  to  the  customer.  Revenue  from  fixed  price  (including  PPP,  alternative  finance,  design-build,  and 
stipulated  sum)  and  cost  reimbursable  (including  cost  plus  and  IPD)  contracts  is  recognized  using  the  input 
method  with  reference  to  costs  incurred.  Revenue  from  unit  price  contracts  in  the  heavy  construction,  civil 
construction and contract surface mining construction sectors is recognized based on the amount of billable work 
completed,  established  by  surveys  of  work  performed,  an  output  method.  For  agency  relationships,  such  as 

98

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

construction management contracts, where the Company acts as an agent for its customers, fee revenue only 
is  recognized,  generally  in  accordance  with  the  contract  terms.  Some  contracts,  particularly  master  service 
agreements  and maintenance service contracts,  do  not specify the amount of fixed consideration at contract 
inception, but will have a transaction price assigned to it once a work order is issued. For the purpose of revenue 
recognition and disclosure, only the transaction price of secured work, as evidenced by work orders, would be 
included in revenue. If the outcome of a construction contract cannot be estimated reliably for management to 
estimate the ultimate profitability of the contract with a reasonable degree of certainty, no profit is recognized. 
As the contract progresses further, the constrained margin and associated revenue are reassessed.  

Revenue from contract modifications, commonly referred to as change orders and claims, is recognized to the 
extent that the contract modifications have been approved by the customer and the amount can be measured 
reliably. In cases where the contract modification is approved, but the price has not been finalized, the Company 
accounts for the contract modification using variable consideration guidance described below. A claim against 
or  dispute  with  a  customer  is  considered  variable  consideration  as  it  is  in  addition  to  the  agreed  upon 
performance obligations outlined in the original contract because of additional costs incurred due to delays and/or 
scope  changes,  for  example.  The  subsequent  settlement  of  a  claim  or  dispute  through  negotiation  results  in 
uncertainty as to the likelihood and amount that will be ultimately collected. 

The amount of variable consideration included in the transaction price may be constrained due to the uncertain 
nature  of  the  recovery  of  the  associated  revenue.  The  Company  will  make  an  estimate  of  the  amount  to  be 
constrained by using either the most likely amount or the expected value method, by contract, depending which 
method is considered to best predict the amount of consideration to which the Company will be entitled. The 
amount of variable consideration to be included in the transaction price is only that to which it is highly probable 
that a significant reversal of cumulative revenue recognized to date will not occur. Management considers the 
following factors in their assessment of the probability of reversal: 

i.  Susceptibility of consideration to factors outside the Company’s influence. 
ii.  Length of time, that is commercially unusual, before resolution of the uncertainty associated with the amount 

of consideration is expected. 

iii.  The Company’s experience with similar types of contracts is limited or the experience is not relevant or has 

iv. 

limited predictive value. 
If, historically the Company has a practice of offering a broad range of pricing concessions or changing the 
payment terms and conditions of similar contracts in similar situations. 

v.  The contract has a larger number and broad range of possible consideration amounts. 

Where the above factors indicate uncertainty associated with the outcome of the transaction price, the Company 
reviews the historical performance under similar contracts in order to determine the appropriate proportion of the 
variable consideration to be included in the transaction price.  

For most arrangements, the customer contracts with the Company to provide a significant service of integrating 
a complex set of tasks and components into a single project or capability (even if that single project results in 
the delivery of multiple units). The Company therefore considers that the entire contract results in the delivery of 
a single performance obligation. Less commonly, the Company may promise to provide distinct goods or services 
within  a  contract,  in  which  case  the  contract  is  separated  into  the  associated  performance  obligations  as 
assessed from the customer’s perspective. If a contract contains multiple performance obligations, the Company 
allocates the total transaction price to each performance obligation in an amount based on the estimated relative 
standalone selling prices of the promised goods or services underlying each performance obligation. When the 
Company is contracted to construct projects, the budgets and overall transaction prices are built up using the 
Company’s  best  estimate  of  costs  associated  to  complete  the  project  using  the  appropriate  overhead  and 
subcontractor rates for a given project and location. This approach to estimate the overall costs and associated 
revenues  is  considered  the  most  appropriate  assessment  of  the  standalone  selling  price  for  the  associated 
performance obligations. 

Annual 2020 Consolidated Financial Statements

99

 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Where  costs  are  determined  to  be  greater  than  total  revenues,  losses  from  any  construction  contracts  are 
recognized in full in the period the loss becomes known. Losses are recorded within provisions on the statement 
of financial position. 

Costs of construction  
Construction costs are expensed as incurred unless they result in an asset related to future contract activity and 
meet the criteria to be capitalized as contract assets. Construction costs include all expenses that relate directly 
to execution of the specific contract, including site labour and site supervision, direct materials, subcontractor 
costs, equipment rentals and depreciation, design and technical assistance, and warranty claims. Construction 
costs also include overheads that can be attributed to the project in a systematic and consistent manner and 
include general insurance and bonding costs, and staff costs relating to project management.  

Contract assets and liabilities 
Any  excess  of  costs  and  estimated  earnings  over  progress  billings  on  construction  contracts  is  carried  as  a 
contract asset in the financial statements. Contract assets also arise when the Company capitalizes incremental 
costs  of  obtaining  contracts  with  customers  and  the  costs  incurred  in  fulfilling  those  contracts,  such  as 
mobilization costs. Costs to fulfill a contract are required to be capitalized where they are determined to relate 
directly to a contract or an anticipated contract that the entity can specifically identify, they generate or enhance 
resources  of  the  Company  that  will  be  used  in  satisfying  performance  obligations  in  the  future,  and  they  are 
expected to be recovered under that specific contract.  

In all cases, the specific contract asset is amortized with reference to the same pattern of recognition as the 
revenue recognized on the associated project. 

Any excess of progress billings over earned revenue on construction contracts is carried as a contract liability in 
the financial statements. 

Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each 
reporting period. All contract assets and liabilities are classified as current in the financial statements as they are 
expected  to  be  settled  within  the  Company’s  normal  operating  cycle.  The  operating  cycle  of  many  of  the 
Company’s contracts exceed 12 months, depending on the type of project or the nature of the service being 
provided. 

Business combinations  
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a 
business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values 
of the assets transferred to the Company, liabilities assumed by the Company and the equity interests issued or 
cash paid by the Company in exchange for control of the acquiree. Acquisition-related costs are expensed as 
incurred, unless related to the issuance of debt or equity. 

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair 
value, except that:  

(cid:120)  Deferred  tax  assets  or  liabilities  and  assets  or  liabilities  related  to  employee  benefit  arrangements  are 
recognized  and  measured  in  accordance  with  IAS  12  Income  taxes,  and  IAS  19  Employee  benefits, 
respectively;  

(cid:120)  For any ROU (i.e. lease)  assets and ROU liabilities identified in which the acquiree is the lessee, IFRS 3 
Business combinations requires the lease liability to be measured at the present value of the remaining lease 
payments as if the acquired lease were a new lease at the acquisition date. The ROU asset is measured at 
an amount equal to the lease liability, adjusted to reflect the favourable or unfavourable terms of the lease 
when compared with market terms. 

The Company measures goodwill as the excess of the sum of the fair value of the consideration transferred, if 
any,  over  the  net  recognized  amount  (generally  fair  value)  of  the  identifiable  assets  acquired  and  liabilities 
assumed, all measured as of the acquisition date.  

100

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Government assistance 
Government grants are recognized when there is reasonable assurance that the Company will comply with the 
conditions attached to them and the grant will be received. When the conditions of a grant relate to income or 
expense,  to  the  extent  possible,  it  is  recognized  in  the  statement  of  income  in  the  period  in  which  eligible 
expenses were incurred or when the services have been performed. There may be circumstances in which the 
determination of applicability of the government grant may cross over reporting periods and cannot be recorded 
in the period in which eligible expenses were incurred or when the services have been performed. For grants 
related to expense, the Company deducts the grant in reporting the related expense. 

Property and equipment 
Property and equipment is measured at cost less accumulated depreciation and accumulated impairment losses, 
if any. The cost of property and equipment includes the purchase price and the directly attributable costs required 
to bring the asset to the condition necessary for the asset to be capable of operating in the manner intended by 
management. The cost of replacing or repairing a component of an item of property and equipment is recognized 
in the carrying amount of the item if it is probable that future economic benefits will occur and the cost can be 
measured reliably. The costs of routine maintenance of property and equipment are recognized in the statement 
of income as incurred.  

Depreciation is calculated based on the cost of an asset (or deemed cost) less its residual value. Depreciation 
commences when the asset is available for use and ceases on the earliest of when the asset is derecognized 
or classified as held-for-sale. When parts of an item of property and equipment have different useful lives, they 
are accounted for as separate components of property and equipment and depreciated accordingly. The carrying 
amount of a replaced component is derecognized. The Company reviews the residual value, useful lives and 
depreciation methods used on an annual basis and, where revisions are required, the Company applies such 
changes in estimates on a prospective basis.  

Depreciation of property and equipment over the estimated useful lives of the assets is as follows: 

Diminishing balance method 
   Buildings 
   Equipment, trucks and automotive 
   Heavy equipment 
   Furniture, fixtures and office equipment 

Straight line method 
   Leasehold improvements  

4% 
20% - 40% 
Hours of use 
20% - 55% 

Over the lease term 

Gains and losses on disposals of property and equipment are determined by comparing the proceeds with the 
carrying amount of the asset and are included as part of general and administrative expenses in the statement 
of income. 

Leases  

Lessee arrangements  
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a 
period of time in exchange for consideration. On the date that the leased asset becomes available for use, the 
Company recognizes a ROU asset and a corresponding ROU liability. Finance costs associated with the lease 
obligation are charged to the statement of income over the lease period with a corresponding increase to the 
ROU liability. The ROU liability is reduced as payments are made against the principal portion of the lease. The 
ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. 
Depreciation  of  the  ROU  asset  is  recognized  as  part  of  costs  of  construction  or  general  and  administrative 
expenses, depending on the nature of the leased asset. 

Annual 2020 Consolidated Financial Statements

101

 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

ROU assets and liabilities are initially measured on a present value basis. Lease obligations are measured as 
the net present value of the lease payments which may include: fixed lease payments, variable lease payments 
that are based on an index or a rate, amounts expected to be payable under residual value guarantees, and 
payments to exercise an extension or termination option, if the Company is reasonably certain to exercise either 
of those options. ROU assets are measured at cost, which is composed of the amount of the initial measurement 
of  the  ROU  liability,  less  any  incentives  received,  plus  any  lease  payments  made  at,  or  before,  the 
commencement date and initial direct costs and asset restoration costs, if any. The rate implicit in the lease is 
used to determine the present value of the liability and asset arising from a lease, unless this rate is not readily 
determinable, in which case the Company's incremental borrowing rate is used. 

The Company has applied a number of practical expedients identified in the standard as follows: 

(cid:120)  Short-term leases and leases of low-value assets are not recognized in the statement of financial 
position and lease payments are instead recognized in the financial statements as incurred. 
(cid:120)  For certain classes of leases, the Company has elected not to separate lease and non-lease 

components (which transfer a separate good or service under the same contract) and instead the 
Company accounts for these leases as a single lease component. 

(cid:120)  Certain leases having similar characteristics are accounted for as a portfolio. 

Lessor arrangements  
When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or 
an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease 
transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the 
case,  then  the  lease  is  a  finance  lease;  if  not,  then  it  is  an  operating  lease.  As  part  of  this  assessment,  the 
Company considers certain indicators, such as whether the lease is for the major part of the economic life of the 
asset.  

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease 
separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from 
the head lease, not with reference to the underlying asset. 

Goodwill 
Goodwill is the residual amount that results when the purchase price of an acquired business exceeds the sum 
of the amounts allocated to the identifiable assets acquired less liabilities assumed, based on their fair values. 
Subsequently, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortized. 

Intangible assets  
Intangible assets with finite lives are comprised of computer software, and assets related to the acquisition of a 
business,  including  backlog  and  agency  contracts  and  customer  relationships.  These  intangible  assets  are 
measured  at  cost  less  accumulated  amortization  and  accumulated  impairment  losses,  if  any.  Amortization  is 
calculated using the cost of the asset, and commences once the asset is available for use and is recognized in 
the statement of income based on the expected pattern of consumption of the economic benefits of the asset. 
Amortization methods, useful lives and residual values are reviewed on an annual basis and adjusted where 
appropriate. Intangible assets with indefinite lives comprising of trade names are not amortized.  

The estimated useful lives of each class of intangible assets are as follows:  

Asset 
Computer software 
Backlog and agency contracts 
Customer relationships 
Trade names 

Basis 
Straight line 
As related revenue is earned 
Straight line 

Useful Life 
1 to 10 years 
1 to 3 years 
3 to 7 years 
Indefinite 

102

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Impairment of non-financial assets 
The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets for 
which separate processes apply, are reviewed at each reporting date to determine whether there is any indication 
of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For intangible 
assets that have an indefinite useful life or intangible assets that are not yet available for use, the recoverable 
amount is estimated annually. 

The recoverable amount of a CGU is the greater of its value-in-use and its fair value less costs of disposal. In 
assessing value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax 
discount rate that reflects current market assessments of the time value of money and the risks specific to the 
asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into 
the smallest group of assets that generates cash inflows from continuing use that are largely independent of the 
cash inflows of other assets or groups of assets (i.e. a CGU). For the purpose of goodwill impairment testing, 
goodwill acquired in a business combination is allocated to the CGU, or the group of CGUs, that is expected to 
benefit  from  the synergies  of the combination. This  allocation is subject to an operating segment ceiling and 
reflects the lowest level at which the goodwill is monitored for internal reporting purposes. 

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable 
amount. Impairment losses are recognized in the statement of income. Impairment losses recognized in respect 
of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGUs, and then to 
reduce the carrying amounts of the other assets in the CGUs on a pro rata basis. 

An  impairment  loss  in  respect  of  goodwill  is  not  reversed.  In  respect  of  other  assets,  impairment  losses 
recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased 
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine 
the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does 
not  exceed  the  carrying  amount  that  would  have  been  determined,  net  of  depreciation  or  amortization,  if  no 
impairment loss had been recognized. 

Provisions and contingent assets 

Provisions 
Provisions are recognized when, at the financial statement date, the Company has a present obligation as a 
result of a past event, it is more likely than not that the Company will be required to settle that obligation, and 
the cash outflow can be estimated reliably. The amount recognized for provisions is the best estimate of the 
expenditure  to  be  incurred.  Where  the  Company  expects  some  or  all  of  the  provision  to  be  reimbursed,  for 
example  through  insurance,  the  reimbursement  is  recognized  as  an  asset  only  when  it  is  virtually  certain  of 
realization. The recoverable amount will not exceed the amount of the provision. Provisions include: 

i.  Provisions for potential legal claims relating to the Company’s performance and completion of construction 
contracts. The Company attempts to settle claims within the construction period of the contracts, but a legal 
claim may take years to settle.  

ii.  Provisions for potential warranty claims relating to construction projects. These claims are usually settled 

during the project’s warranty period.  

iii.  Provisions for loss contracts are recorded when costs are estimated to be greater than total revenues for 
the contract. Losses from construction contracts are recognized in full in the period the loss becomes known. 
The loss provision will be net of management’s estimate of probable expected recoveries, which differs from 
the criterion used for revenue recognition.  

Contingent assets 
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only 
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the 
entity. Cost recovery claims associated with claims against subcontractors and parties other than customers are 
considered contingent assets until it is virtually certain that the claims will be settled. Contingent assets are not 
recorded or disclosed in the financial statements. 

Annual 2020 Consolidated Financial Statements

103

 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Subcontractor/ supplier performance default insurance 

The  Company  maintains  an  insurance  policy  which  provides  the  Company  with  comprehensive  coverage  in 
respect of subcontractor or supplier default on certain projects where the subcontractor or supplier is enrolled in 
the program. The total insurance premium paid by the Company to the insurer is comprised of a non-refundable 
premium and a deposit premium. The deposit premium paid by the Company is included in other non-current 
assets on the consolidated statements of financial position (the “statements of financial position”). The liabilities 
included in provisions on the statements of financial position relate to management’s best estimate of exposures 
and costs associated with prior or existing subcontractor or supplier performance defaults. Management 
 conducts a thorough review of the liability every reporting period and takes into consideration the Company’s 
experience to date with those subcontractors or suppliers that are enrolled in the program.  

Foreign currency translation 

Foreign currency transactions 
Foreign currency transactions and balances are recorded in the accounts as follows: 

i.  Monetary assets and liabilities at the exchange rate in effect at the financial statement date; 
ii.  Non-monetary assets and liabilities at exchange rates prevailing at the time of the transaction; 
iii.  Depreciation expense at the exchange rate in effect at the time the related assets are acquired; and 
iv.  Revenue and expenses at the average exchange rate prevailing on the date of the transaction. 

Translation of equity accounted foreign entities 
Assets  and  liabilities  of  equity  accounted  foreign  entities  are  translated  from  the  functional  currency  to  the 
Company’s presentation currency at the closing rate at the end of the reporting period. The statements of income 
are translated at exchange rates at the dates of the transactions or at the average rate if it approximates the 
actual rates. All resulting exchange differences are recognized in other comprehensive income. 

Income taxes 
Income tax expense comprises current  and deferred  tax. Current  tax and deferred tax are recognized  in the 
statement of income except to the extent that it relates to a business combination, or items recognized directly 
in equity or in other comprehensive income. 

Current income taxes are recognized for the estimated income taxes payable based on applying enacted income 
tax rates to the taxable income realized in the current year. Current tax includes adjustments to taxes payable 
or recoverable in respect of previous years.  

Deferred income tax assets and liabilities  are recognized for temporary  differences between the tax  basis  of 
assets and liabilities and their carrying amounts for financial reporting purposes, as well as for the benefit of tax 
losses available to be carried forward to future years provided they are likely to be realized. Deferred taxes are 
recognized using enacted or substantively enacted rates expected to apply in the periods in which the asset is 
realized or the liability is settled. Deferred taxes are measured on an undiscounted basis. Deferred taxes are 
presented  as  non-current.  Current  and  deferred  tax  assets  and  liabilities  are  offset  only  when  a  legally 
enforceable right exists  to  offset current  tax assets against current tax liabilities relating  to the same  taxable 
entity and the same tax authority. 

Basic and diluted earnings per share 
The  Company’s  basic  earnings  per  share  calculation  is  based  on  the  net  income  available  to  common 
shareholders  for  the  period  divided  by  the  weighted  average  number  of  common  shares  outstanding  for  the 
period. Diluted earnings per share is calculated by dividing the net income available to common shareholders 
for the period by the weighted average number of common shares outstanding for the period, adjusted for the 
effects of all dilutive potential common shares, including stock options granted to employees. 

104

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Post-employment benefits  
The Company maintains two registered pension plans. Each plan includes a defined contribution (“DC”) provision 
and a non-contributory DB provision. The DB provision covers salaried employees for two of its subsidiaries. 
Annual  employer  contributions  to  the  DB  provision  of  each  plan,  which  are  actuarially  determined  by  an 
independent actuary, are made on the basis of being not less than the minimum amounts required by provincial 
pension supervisory authorities.  Unlike the DB provision, there is no obligation recorded for the DC provision. 
The DC contributions made by the Company are measured on an undiscounted basis and are expensed as the 
related services are provided.  

DB  pension  costs  are  actuarially  determined  using  the  projected  unit  credit  method  and  management’s  best 
estimate of salary escalation and retirement age of employees. The Company’s net obligation in respect of DB 
pension plans is calculated separately for each plan by estimating the amount of future benefits that employees 
have earned in return for their service in the current and prior periods; that benefit is discounted to determine its 
present value. Any recognized past service costs and the fair value of plan assets are deducted. The discount 
rate used to establish the pension obligation was determined by reference to market interest rates on AA-rated 
corporate bonds with cash flows that approximate the timing and amount of expected benefit payments. When 
the calculation results in a benefit to the Company, the recognized asset is limited to the total of any unrecognized 
past service costs and the present value of economic benefits available in the form of any future refunds from 
the plan  or reductions in future contributions to the  plan. In  order to calculate the present value of economic 
benefits, consideration is given to any minimum funding requirements that apply to any plan within the Company. 
An economic benefit is available to the Company if it is realizable during the life of the plan, or on settlement of 
the plan liabilities.  

The pension deficit or surplus is adjusted for any material changes in underlying assumptions. The Company 
recognizes all actuarial gains and losses arising from the DB plans in other comprehensive earnings in the period 
in which they occur. When the benefits of a plan are improved, the portion of the increased benefit related to 
past service by employees is recognized in the statement of income on a straight-line basis over the average 
service period until the benefits become vested. To the extent that the benefits vest immediately, the expense is 
recognized immediately in the statement of income.  

Stock option plan 
The Company's Stock Option Plan, as described in note 23, is a share-based payment plan which provides for 
the  granting  of  stock  options.  The  fair  value  of  share-based  payment  awards  is  recognized  as  an  employee 
expense, with a corresponding increase in contributed surplus, on a straight-line basis over the vesting period.  
The amount recognized as an expense is adjusted to reflect the number of awards for which the related service 
conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the 
number of awards that do meet the related service conditions at the vesting date.  

Medium term incentive plan 
The  Company’s  Medium  Term  Incentive  Plan  (“MTIP”)  is  a  cash-settled  share-based  payment  plan  which 
provides for the granting of phantom shares. The phantom shares provide the holder with the opportunity to earn 
a cash benefit in relation to the value of a specified number of underlying notional shares. MTIP awards for 2018 
and 2019 grants vest on November 30 of the third year following the year to which the award relates, and for 
2020 grants vest between November and December of the second and third year following the year to which the 
award relates, if the employee has maintained continuous employment with the Company, or at the Company’s 
discretion. Annually, the Board of Directors determines the amount of the initial award, which is then used to 
determine the number of shares allocated to the employee. The total liabilities for this plan are computed based 
on the estimated number of phantom shares expected to vest at the end of the vesting period. The liability is 
measured at each reporting date at fair value with changes in fair value recognized in income. The fair value of 
the phantom shares outstanding at the end of a reporting period is measured based on the quoted market price 
of the Company’s shares. The phantom shares earn notional dividends, equivalent to actual dividends declared 
on the Company’s shares. Compensation expense relating to the initial award, notional dividends and changes 
in the market price of the phantom shares is recognized on a straight-line basis in the statement of income over 
the vesting period. 

Annual 2020 Consolidated Financial Statements

105

 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Equity incentive plan 
The Company has an Equity Incentive Plan (“EIP”) as part of the Company’s executive compensation plan. The 
purpose of the EIP is to provide certain officers and employees of the Company with the opportunity to be granted 
performance  share  units  (“PSU”)  or  time-based  restricted  share  units  (“RSU”),  and  together  with  PSUs,  the 
(“Units”). The EIP is a full-value share unit plan using the value of the Company’s shares as the basis for the 
Units. In the case of the PSUs, the amount of award payable at the end of the vesting period will be determined 
by a performance multiplier. Under the EIP, the Company is entitled, in its sole discretion, to settle the Units in 
either cash or the Company’s Shares purchased on the TSX or issued from treasury, or a combination thereof. 
The Company intends to settle the EIP in cash.  

As a cash-settled compensation arrangement, the fair value of the amount payable is recognized as an expense 
with a corresponding increase in liabilities over the vesting period. The Units will vest and be settled on their 
issue date, which will be no later than December 31 in the third year following the date of grant, or in accordance 
with  the  EIP,  participant’s  award  agreement,  or  the  Company’s  discretion.  The  liabilities  for  this  plan  are 
calculated based on the estimated number of Units expected to vest at the end of the vesting period. The Units 
earn  notional  dividends,  equivalent  to  actual  dividends  declared  on  the  Company’s  shares.  The  liability  is 
remeasured at each reporting date at fair value with changes in fair value recognized in income. The fair value 
of the Units outstanding at the end of a reporting period is measured based on the quoted market price of the 
Company’s shares, with PSUs also adjusted by a performance multiplier. Compensation expense relating to the 
initial award, notional dividends and changes in the market price of the Units is recognized on a straight-line 
basis in the statement of income over the vesting period.    

Deferred share unit plan 
The Company has a Deferred Share Unit Plan ("DSU Plan"), which is a cash-settled share-based payment plan.  
The fair value of the amount payable to eligible Directors in respect of Deferred Share Units ("DSU") is equivalent 
to the cash value of the common shares at the reporting date. The DSUs earn notional dividends, equivalent to 
actual dividends declared on the Company's shares. DSUs are cash-settled when the eligible Director ceases 
to  hold  any  position  within  the  Company.  The  liability  associated  with  the  DSU  Plan  is  recalculated  at  each 
reporting  date  and  at  settlement.  Any  change  in  the  fair  value  of  the  liability  is  recognized  as  an  expense  in 
general and administrative expenses in the statement of income. 

Cash and cash equivalents 
The Company considers cash, bank indebtedness, if any, bankers’ acceptances and short-term deposits with 
original maturities of three months or less, as cash and cash equivalents. 

Financial instruments  

Classification and measurement of financial instruments 
Financial assets and liabilities are recognized on the statement of financial position when the Company becomes 
a party to the contractual provisions of the financial instrument or derivative contract. The Company derecognizes 
a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to 
receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and 
rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is 
created  or  retained  by  the  Company  is  recognized  as  a  separate  asset  or  liability.  Financial  liabilities  are 
derecognized  when  their  contractual  obligations  are  discharged,  cancelled  or  have  expired.  Financial 
instruments are initially measured at fair value and are subsequently accounted for based on their classification 
as  described  below.  The  classification  of  financial  assets  is  determined  by  their  context  in  the  Company’s 
business model and by the characteristics of the financial asset’s contractual cash flows. 

(cid:120)  Amortized  cost:  The  contractual  cash  flows  received  from  the  financial  assets  are  solely  payments  of 
principal and interest and are held within a business model whose objective is to collect the contractual cash 
flows. The financial assets and financial liabilities are subsequently measured at amortized cost using the 
effective interest method.  

106

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

(cid:120)  Fair value through profit or loss (“FVTPL”): A financial asset is measured at FVTPL if it does not meet the 
criteria for assets measured at amortized cost or FVTOCI. Financial assets at FVTPL include held for trading 
assets  and  derivative  instruments.  Financial  assets  at  FVTPL  are  measured  at  fair  value  with  changes 
recognized in the statement of income. Transaction costs associated with assets classified as FVTPL are 
expensed as incurred. 

(cid:120)  Fair  value  through  other  comprehensive  income  (“FVTOCI”):  The  Company  does  not  have  any  financial 

assets held at FVTOCI at December 31, 2020 or 2019. 

The Company has the following financial assets and liabilities: 

Classification & basis of measurement 

Financial assets: 
Cash and cash equivalents 
Accounts receivable  
Notes receivable 
Derivative contracts 

Financial liabilities: 

Accounts payable 
Dividends payable to shareholders 
Loans and borrowings 
Non-recourse project financing – loan facilities 
Right-of-use liabilities 
Derivative contracts 

Amortized cost 
Amortized cost 
Amortized cost 
FVTPL 

Amortized cost 
Amortized cost 
Amortized cost 
Amortized cost 
Amortized cost 
FVTPL 

Derivative financial instruments 
The Company uses interest rate swaps to manage its interest rate risk on non-recourse project financing and its 
variable rate loans and borrowings. The Company also uses Total Return Swap (“TRS”) derivative contracts for 
the  purpose  of  managing  its  exposure  to  changes  in  the  fair  value  of  its  MTIP,  EIP  and  DSU  share-based 
compensation plans due to changes in the fair value of the Company’s common shares. The Company does not 
employ hedge accounting for any of its derivative contracts currently in place. 

Impairment of financial assets 
Financial assets measured at amortized cost are assessed at each reporting date to determine whether there is 
objective evidence of impairment. An expected credit loss (“ECL”) impairment model is applied, where the ECL 
is the present value of all cash shortfalls over the expected life of the financial asset. Impairment is measured at 
either  the  12-month  ECL  or  lifetime  ECL.  The  Company  recognizes  the  12-month  ECL  in  the  statement  of 
income; however, for trade receivables and contract assets that do not contain a significant financing component, 
a lifetime ECL is measured at the date of initial recognition. 

A  financial  asset  is  impaired  if  objective  evidence  indicates  that  a  loss  event  has  occurred  after  the  initial 
recognition of the asset, and that the loss event will have a negative effect on the estimated future cash flows of 
the asset that can be estimated reliably.  

An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference 
between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s 
original effective interest rate. The carrying amounts of financial assets are reduced by the amount of the ECL 
through  an  allowance  account  and  losses  are  recognized  in  general  and  administrative  expenses  in  the 
statement of income. 

Annual 2020 Consolidated Financial Statements

107

 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Joint arrangements 
A  joint  arrangement  is  an  arrangement  in  which  the  Company  has  joint  control,  established  by  contractual 
agreements  requiring  unanimous  consent  for  decisions  about  activities  that  significantly  affect  the 
arrangement's returns. Joint arrangements are classified as either a joint operation or a joint venture. A joint 
operation  is  an  arrangement  where  the  joint  controlling  parties  have  direct  rights  to  the  assets  and  direct 
obligations for the liabilities of the arrangement in the normal course of business.  Interests in a joint operation 
are accounted for by recognizing the Company's share of assets, liabilities, revenues and expenses. A joint 
venture is an arrangement where the joint controlling parties have rights to the net assets of the arrangement.  
Interests in a joint venture are recognized as an investment and accounted for using the equity method. The 
determination  as  to  whether  a  joint  arrangement  is  a  joint  venture  or  a  joint  operation  requires  significant 
judgement based on the structure of the arrangement, the legal form of any separate vehicle, the contractual 
terms of the arrangement and other facts and circumstances. The joint arrangements in which Bird participates 
are typically formed to undertake a specific construction project, are jointly controlled by the parties, and are 
dissolved upon completion of the project.  

Finance income and finance costs 
Finance  income  is  comprised  of  interest  earned  on  cash  and  cash  equivalents,  interest  earned  on  lease 
receivables, gains/losses on disposal of investments and changes in the fair value of financial assets classified 
as fair value through profit and loss. Interest income is recognized as it accrues in the income statement. 

Finance costs are comprised of interest on loans and borrowings including non-recourse project financing using 
the effective interest rate method, interest expense related to ROU liabilities, interest expense related to the net 
gain or loss on interest rate swaps, interest associated with TRS contracts, fees associated with credit facilities, 
bank charges and other interest expenses. 

5.  New accounting standards, amendments and interpretations adopted 

Amendments to IFRS 3 - Definition of a Business 
On  October  22,  2018,  the  IASB  issued  amendments  to  IFRS  3  Business  Combinations  that  seek  to  clarify 
whether  a  transaction  results  in  an  asset  or  a  business  acquisition.  The  amendments  apply  to  businesses 
acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The 
definition of a business is narrower which could result in fewer business combinations being recognized. The 
Company adopted the amendments to IFRS 3 on a prospective basis on January 1, 2020. The adoption of the 
amendments to IFRS 3 did not have an impact on the financial statements.  

6.  Future accounting changes 

There  are  new  accounting  standards,  amendments  to  accounting  standards  and  interpretations  that  are 
effective for annual periods beginning on or after January 1, 2021 and have not been applied in preparing the 
financial  statements  for  the  year  ended  December  31,  2020.  These  standards  and  interpretations  are  not 
expected to have a material impact on the Company’s financial statements. The following standard is applicable 
to the Company: 

Amendments to IFRS 16 Leases  
On  May  28,  2020,  the  IASB  issued  COVID-19-Related  Rent  Concessions  (Amendment  to  IFRS  16).  The 
amendments are effective for annual periods beginning on or after June 1, 2020. Early adoption is permitted. 

The amendments exempt lessees from having to consider individual lease contracts to determine whether rent 
concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows 
lessees to account for such rent concessions as if they were not lease modifications. It applies to COVID-19-
related rent concessions that reduce lease payments due on or before June 30, 2021. The Company will adopt 
the amendments to IFRS 16 on a prospective basis and the amendments are not expected to have a material 
impact on the financial statements. 

108

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

7.  Business combination 

On July 29, 2020, the Company entered into an arrangement agreement (“Arrangement Agreement”) pursuant 
to which, among other things, the Company agreed to acquire all of the outstanding common shares of Stuart 
Olson Inc. (“Stuart Olson”) by way of a plan of arrangement under the Business Corporations Act (Alberta) (the 
"Arrangement").  

The  principal  activities  of  Stuart  Olson  and  its  subsidiaries  are  to  provide  general  contracting  and  electrical 
building  systems  contracting  in  the  public  and  private  construction  markets,  as  well  as  general  contracting, 
electrical,  mechanical  and  specialty  trades,  such  as  insulation,  cladding  and  asbestos  abatement,  in  the 
industrial construction and services market. Stuart Olson provides its services to a wide array of clients within 
Canada. One of the key rationales for the business combination was to further diversify the Company’s risk 
profile by expanding its service offerings and revenue streams. The Company has grown its industrial general 
contracting  business,  including  industrial  maintenance,  repair  and  operations.  In  the  institutional  and 
commercial sectors, the Company has added capability in construction management services, and its newly 
acquired commercial systems business is one of Canada’s largest electrical and data system contractors. The 
acquisition further enhances the Company’s ability to service maintenance, repair and operations. 

On September 25, 2020, the Arrangement was completed, pursuant to which the Company acquired all of the 
issued and outstanding common shares of Stuart Olson  in exchange for common shares of the Company and 
cash consideration, and completed the payout and termination of all indebtedness as detailed below. Under the 
terms of the Arrangement: 

(cid:120)  Stuart Olson's secured creditors received an aggregate cash payment of $70.0 million in full satisfaction of 
all obligations, indebtedness and liabilities of Stuart Olson and its affiliates under the bank credit facility, 
including unpaid interest, fees and expenses;  

(cid:120)  Canso Investment Counsel Ltd. ("Canso"), in its capacity as portfolio manager for and on behalf of certain 
accounts  managed  by  it,  acquired  an  aggregate  of  6,329,114  common  shares  for  gross  proceeds  of 
approximately $40.0 million; 

(cid:120)  Those  accounts  managed  by  Canso,  in  its  capacity  as  portfolio  manager,  that  held  the  convertible 
unsecured  subordinated  debentures  due  September  20,  2024  (the  “Debentures”),  received  3,560,127 
common shares valued at $21.8 million based on a deemed issue price equal to $6.32 per share for $22.5 
million  of  principal  value  of  Debentures  in  full  satisfaction  of  all  indebtedness,  accrued  interest  and 
obligations of Stuart Olson and its affiliates under the indenture governing the Debentures; and 

(cid:120)  Stuart Olson shareholders received an aggregate of 632,835 common shares, based on an exchange ratio 
of 0.02006051 common shares for each Stuart Olson common share. Those Stuart Olson shareholders 
entitled  to  receive  less  than  one  common  share  for  all  Stuart  Olson  shares  received  a  cash  payment 
determined by reference to the volume weighted average trading price of the Company’s common shares 
on the Toronto Stock Exchange for the five trading days immediately preceding September 25, 2020.  

In connection with this acquisition, the Company incurred acquisition costs of approximately $5,570 comprised 
mainly of consulting and other professional fees. These costs have been included in general and administrative 
expenses in the statement of income. Transaction costs of $124 directly attributable to the issue of common 
shares are recognized as a deduction from shareholders' capital. 

The  Arrangement  has  been  accounted  for  as  a  business  combination  using  the  acquisition  method  of 
accounting whereby the assets acquired, and liabilities assumed are recognized at their fair value, except for 
deferred tax assets or liabilities, assets or liabilities related to employee benefit arrangements and any ROU 
assets and ROU liabilities identified in which the acquiree is the lessee.  

Annual 2020 Consolidated Financial Statements

109

 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

The value of the assets and liabilities associated with the Stuart Olson acquisition were not finalized by March 
9,  2021,  and  therefore  are  preliminary  figures.  If  new  information  obtained  within  one  year  of  the  date  of 
acquisition about facts and circumstances that existed at the date of acquisition that identifies adjustments to 
the  amounts  noted  below,  or  any  additional  provisions  that  existed  at  the  date  of  acquisition,  then  the 
accounting for the acquisition will be revised. 

During  the  three  months  ended  December  31,  2020,  measurement  period  adjustments  were  made  to  the 
purchase  price  allocation  to  reflect  new  information  obtained  by  management  with  respect  to  facts  and 
circumstances that existed as of September 25, 2020. The impact of these measurement period adjustments 
were: $5,010 increase in accounts receivable, $991 increase in contract assets, $126 increase in income taxes 
recoverable, $10 decrease in other assets, $232 increase in property and equipment, $2,146 decrease in ROU 
assets, $3,000 decrease in intangible assets, $1,816 decrease in the net deferred tax assets, $1,695 decrease 
in accounts payable, $4,478 increase in contract liabilities, $1,806 decrease in income taxes payable, $5,929 
increase in provisions, $1,578 decrease in other liabilities and $5,941 increase in goodwill. 

Number of common shares issued to Stuart Olson shareholders 
Number of common shares issued on settlement of Debentures 
Total common shares issued as consideration 
Common share price at close on September 25, 2020 

Equity consideration 
Cash consideration 
Total Consideration 

Fair value of assets and liabilities of Stuart Olson acquired: 
Assets acquired 

Cash and cash equivalents 
Accounts receivable 
Contract assets 
Income taxes recoverable 
Lease receivables 
Other assets 
Property and equipment 
Right-of-use assets 
Intangible assets 

   Net deferred tax assets 
Liabilities assumed 
Accounts payable 
Contract liabilities 
Income taxes payable 
Provisions 
Pension liabilities 
Loans and borrowings 
Right-of-use liabilities 
Other liabilities 

Net identifiable assets acquired 
Goodwill 
Net assets acquired 

632,835 
3,560,127 
4,192,962 
6.12 

25,661 
70,000 
95,661 

10,040 
269,736 
33,534 
622 
7,506 
3,634 
15,483 
26,728 
25,430 
8,262 

(190,450) 
(56,316) 
(7,913) 
(14,482) 
(5,023) 
(667) 
(46,887) 
(241) 
78,996 
16,665 
95,661 

$ 

$ 

$ 

$ 

$ 

$ 

110

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Goodwill and intangible assets  
Goodwill  of  $16,665  recognized  as  part  of  the  acquisition  is  attributed  to  expected  revenue  growth,  future 
market development, the assembled workforce and the synergies achieved from the integration of Stuart Olson 
into  the  Company’s  business.  These  benefits  are  not  recognized  separately  from  goodwill,  as  the  future 
economic benefits arising from them cannot be reliably measured. The goodwill recognized is not deductible 
for tax purposes. Identifiable intangible assets acquired of $25,430 includes computer software, backlog and 
agency contracts, customer relationships and trade names.  

The fair value of the trade receivables acquired amounts to $269,736. The gross amount of trade receivables 
was  $282,443,  of  which  $12,707  was  expected  to  be  uncollectible  at  acquisition  date.  From  the  date  of 
acquisition, Stuart Olson has contributed $251,663 of revenue and $3,476 of net income. If the acquisition had 
occurred on January 1, 2020, revenue for the combined entity would be $2,179,178 and net income would be 
$31,512 for the year ended December 31, 2020.  

8.  Cash and cash equivalents  

Cash and cash equivalents 
Cash 
Restricted cash and blocked accounts* 
Cash held for joint operations 
Short-term deposits held to support letters of credit* 

$ 

$ 

2020 
96,671  $ 
55,107 
60,200 
90 
212,068  $ 

2019 
36,127 
10,102 
134,015 
90 
180,334 

* Cash and cash equivalents include the following restricted cash and blocked accounts. These amounts are not 

available for general operating purposes. 

Restricted cash and cash equivalents 
Cash and cash equivalents held to support letters of credit (note 18)  $ 
Cash deposited in blocked accounts for special projects (note 11) 
Restricted cash 

$ 

2020 

139  $ 

1,033 
54,025 
55,197  $ 

2019 
139 
212 
9,841 
10,192 

Support for Letters of Credit 
In the normal course of  business, the  Company  issues letters of credit  on certain projects to guarantee its 
performance. These projects are typically design-build contracts relating to PPP arrangements and other major 
construction projects. In certain instances, the letters of credit are supported by the hypothecation of cash and 
cash equivalents that are not available for general corporate purposes (note 18). 

Blocked Accounts 
The terms of non-recourse project financing require scheduled loan advances to be deposited in a blocked 
bank  account  which  cannot  be  accessed  directly  by  the  Company  for  general  corporate  purposes.  Upon 
recommendation by the lender’s technical advisor, cash is released monthly from the blocked account and 
paid to the Company based on the progress made on the related construction project. Once PPP projects that 
only involve short term financing reach final completion and the debt is repaid, any remaining amounts in the 
project accounts become unrestricted and available for general corporate purposes.  

Restricted Cash 
Under the Construction Act in Ontario, a bank account has been established for the benefit of persons who 
have  supplied  services  or  materials  to  the  improvement  for  specific  projects  subject  to  the  legislation.  The 
funds remain in the account until all subcontractors, suppliers and direct labour are paid, as appropriate. 

Annual 2020 Consolidated Financial Statements

111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

9.  Accounts receivable 

Progress billings on construction contracts 
Holdbacks receivable (due within one operating cycle) 
Other 

$ 

$ 

2020 
336,286  $ 
160,364 
33,175 

529,825  $ 

2019 
271,931 
134,751 
6,967 
413,649 

Accounts receivable are reported net of an allowance for doubtful accounts of $1,471 as at December 31, 2020 
(December 31, 2019 - $1,538). Holdbacks receivable represent amounts billed on construction contracts which 
are not due until the contract work is substantially complete and the applicable lien period has expired.  

Included in other accounts receivable are government assistance receivables of $25,847 at December 31, 2020 
(December 31, 2019 - $nil) related to the Canada Emergency Wage Subsidy (“CEWS”). See note 29.  

10. Revenue, contract assets and contract liabilities   

Disaggregation of revenue 
The Company disaggregates revenue from contracts with customers by contract type, as this best depicts how 
the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.   

Public Private Partnerships (“PPP”) 
Alternative finance projects and complex design-build 
Stipulated sum, unit price and standard specification 
design-build 
Construction management, cost plus and IPD 

$ 

$ 

2020 
28,760  $ 

100,572 

942,776 

432,324 
1,504,432  $ 

2019 
102,105 
176,887 

792,492 

304,924 
1,376,408 

Remaining performance obligations  
The  total  value  of  all  contracts  awarded  to  the  Company,  less  the  total  value  of  work  completed  on  these 
contracts as of the reporting date is referred to as remaining performance obligations. This includes all contracts 
that have been awarded to the Company whether the work has commenced or will commence in the normal 
course. 

As  at  December  31,  2020  the  aggregate  amount  of  the  transaction  price  allocated  to  total  remaining 
performance  obligations  from  construction  contracts  was  $2,682,498.  The  value  of  remaining  performance 
obligations  does  not  include  amounts  for  variable  consideration  that  are  constrained,  agency  relationship 
construction management projects, and estimated future work orders to be performed as part of master services 
agreements.  

The Company expects to recognize approximately 59% of the remaining performance obligations over the next 
12  months  with  the  remaining  balance  being  recognized  beyond  12  months.  This  expectation  is  based  on 
management’s best estimate but contains uncertainty as it is subject to factors outside of management’s control. 

The Company’s measure of remaining performance obligations is also referred to as “Backlog”; this measure 
may  not  be  comparable  with  the  calculation  of  similar  measures  by  other  entities  as  Backlog  is  not  a  term 
defined under IFRS.  

112

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Summary of contract balances  
The following table provides information about receivables, contract assets and contract liabilities from 
contracts with customers:  

Progress billings and holdbacks receivable (note 9) 
Contract assets 
Contract assets – alternative finance projects (note 11) 
Contract liabilities 

$ 

$ 

2020 
496,650  $ 

60,031 
113 
(120,054) 
436,740  $ 

2019 
406,682 
31,018 
75,180 
(112,126) 
400,754 

Progress billings and holdbacks receivable  
The Company issues invoices in accordance with the billing schedule or contract terms. These invoices trigger 
recognition of accounts receivable. 

Contract assets including alternative finance projects  
The Company receives payments from customers based on a billing schedule, as established in the contracts. 
A contract asset relates to the conditional right to consideration for completed performance under the contract. 
Accounts receivable are recognized when the right to consideration becomes unconditional. Contract assets 
related to construction contracts are typically invoiced within a year, while alternative finance projects (note 11) 
follow a contractually agreed billing schedule and contract assets are recognized in accounts receivable upon 
substantial performance.   

Balance, December 31, 2019 
Acquisition (note 7) 
Reduction of contract assets due to progress billings 
Additions to contract assets 
Balance, December 31, 2020 

Balance, December 31, 2018 
Reduction of contract assets due to progress billings 
Additions to contract assets 
Balance, December 31, 2019 

Construction 
contracts 

2020 

Alternative 
finance 
projects 

31,018  $ 
33,534 
(325,692) 
321,171 

60,031  $ 

75,180  $ 
– 
(149,837) 
74,770 

113  $ 

Construction 
contracts 

2019 

Alternative 
finance 
projects 

28,412  $ 

      7,126  $ 

(390,054) 
392,660 

31,018  $ 

– 
68,054 
75,180  $ 

$ 

$ 

$ 

$ 

Total 
106,198 
33,534 
(475,529) 
395,941 
60,144 

Total 

      35,538 
(390,054) 
460,714 
106,198 

Contract liabilities  
Contract  liabilities  relate  to  payments  received  in  advance  of  performance  under  the  contract.  Contract 
liabilities are recognized as revenue as (or when) the Company performs under the contract. Typically, contract 
liabilities are recognized within a year as performance is achieved per contractual terms. 

For  the  year  ended  December  31,  2020,  $112,126  of  revenue  (2019  –  $60,003)  was  recognized  that  was 
included in the contract liability balance at the beginning of the year.  

Annual 2020 Consolidated Financial Statements

113

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

For the year ended December 31, 2020, $nil (2019 – $1,203) of revenue was recognized from the satisfaction 
of performance  obligations related to previous periods. This amount represents  changes in the transaction 
price due to contract modifications and various other cumulative catch up adjustments. 

11. Alternative finance projects  

During 2018, the Company was awarded a fixed-price design-build-finance contract to construct the Ontario 
Provincial Police (“OPP”) Modernization Phase 2 project. The project obtained substantial completion and was 
billed during the fourth quarter of 2020.  

The  Company  had  arranged  a  $138,475  loan  facility  related  to  the  project,  of  which  $nil  is  outstanding  at 
December 31, 2020, as the loan was repaid in full in the fourth quarter of 2020. The terms of the debt financing 
agreement require that scheduled loan advances be deposited into a bank account that cannot be accessed 
directly by the Company. Upon recommendation by the lender’s technical advisor, cash is released monthly 
based on the progress of the work (note 8). 

Interest is paid monthly in arrears. Borrowings under the facility bear interest at a rate per annum equal to the 
bankers’ acceptance rate plus a spread. Interest expense on the loan during the year ended December 31, 
2020 of $3,522 (2019 – $1,995) is included in finance costs. As part of the loan facility, the Company entered 
into an interest rate swap agreement that effectively fixes the interest rate at 3.29%. The interest rate swap 
agreement was settled in the fourth quarter of 2020. The notional amounts of the interest rate swap agreement 
matched the estimated draws under the loan facility. The interest rate swap agreement is not designated as a 
hedge, and changes in the fair market value are recorded in finance costs in the statement of income.  

Balance, December 31, 2019 
Proceeds 
Repayment of debt 
Transaction costs, net of amortization 
Change in fair value of interest rate swap 
Balance, December 31, 2020 

$ 

$ 

2020 

Loan 
facility  
85,067  $ 
46,782 
    (131,849) 
– 
– 
–  $ 

Transaction 
costs 
(369)  $ 
– 
– 
369 
– 
–  $ 

Interest 
rate swap 

676  $ 
– 
– 
– 
(676) 

–  $ 

Total 
85,374 
46,782 
    (131,849) 
369 
(676) 
– 

Balance, December 31, 2018 
Proceeds 
Repayment of debt 
Transaction costs, net of amortization 
Change in fair value of interest rate swap 
Balance, December 31, 2019 

2019 

Loan 
facility  
12,235  $ 
72,832 
                  – 
– 
– 
85,067 

$ 

$ 

Transaction 
costs 
(1,024)  $ 
– 
– 
655 
– 
(369) 

Interest 
rate swap 

613  $ 
– 
– 
– 
63 
676 

Total 
11,824 
72,832 
– 
655 
63 
85,374 

114

Annual 2020 Consolidated Financial Statements

 
 
 
 
  
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

12. Other assets 

Subcontractor / Supplier insurance deposits 
Notes receivable 
Lease receivables (note 7) 
TRS derivatives (note 21) 
Other assets 

Less: current portion 
  TRS derivatives (note 21) 
  Notes receivable 
  Lease receivables 
Current portion  
Non-current portion 

$ 

$ 

2020 
5,197  $ 
1,806 
7,141 
1,604 
15,748 

1,330 
– 
1,247 
2,577 
13,171  $ 

2019 
4,511 
8,069 
– 
– 
12,580 

– 
5,972 
– 
5,972 
6,608 

Subcontractor/Supplier insurance deposits relate to the Company's insurance policies which provide Bird with 
comprehensive  coverage,  subject  to  a  deductible,  in  respect  of  subcontractor  or  supplier  default  on  certain 
projects where the subcontractor or supplier is enrolled in the program.  

The  Company  has  promissory  notes  (Notes  receivable)  outstanding  from  an  equity  accounted  joint 
arrangement.  One  promissory  note  is  available  to  the  borrower  for  working  capital  purposes  and  is  due  on 
September 8, 2022. The second promissory note is available to the borrower for a specific project, was due 
upon completion of the project, and was fully repaid in 2020. 

The Company entered into TRS derivative contracts for the purpose of managing its exposure to changes in 
the fair value of its MTIP, EIP and DSU share-based compensation plans, due to changes in the fair value of 
the Company’s common shares. The TRS derivative contracts are not designated as a hedge and changes in 
the fair market value are recorded as compensation  expense in  general and administrative expenses in the 
statement of income.  

The Company subleases certain facilities, resulting from the acquisition of Stuart Olson (note 7). The following 
is a detailed maturity analysis of the undiscounted finance lease payments receivable as at December 31, 2020: 

Lease receivables 

$ 

7,141  $ 

Carrying 
amount  

Contractual 
cash flows 
7,757 

$ 

Not later 
than 1 
year  
1,429  $ 

Later than 1 
year and 
less than 3 
years 
2,746  $ 

Later than 3 
years and 
less than 5 
years 
2,284 

$ 

Later 
than 5 
years 
1,298 

Annual 2020 Consolidated Financial Statements

115

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

13. Projects and entities accounted for using the equity method 

The  Company  performs  some  construction  and  concession  related  projects  through  joint  ventures  and 
associates which are accounted for using the equity method. The Company’s joint ventures and associates 
are private entities and there is no quoted market value available for their shares.  

Total current assets 
Total non-current assets 
Total assets  

Total current liabilities 
Total non-current liabilities 
Total liabilities 

Net assets – 100% 
Attributable to the Company 

Revenue – 100% 
Total comprehensive income – 100% 

Attributable to the Company 

Total current assets 
Total non-current assets 
Total assets  

Total current liabilities 
Total non-current liabilities 
Total liabilities 

Net assets – 100% 
Attributable to the Company 

Revenue – 100% 
Total comprehensive income – 100% 

Attributable to the Company 

Joint 
Ventures 

100,893  $ 
163,170 
264,063 

13,150 
214,239 
227,389 

2020 

Associates 

38,966  $ 

167,778 
206,744 

12,840 
167,759 
180,599 

36,673  $ 
12,008  $ 

26,145  $ 
2,615  $ 

56,009  $ 
7,205  $ 

8,074  $ 
2,379  $ 

Total 
139,859 
330,948 
470,807 

25,990 
381,998 
407,988 

62,818 
14,623 

64,083 
9,584 

4,456  $ 

232  $ 

4,688 

Joint 
Ventures 
124,396  $ 
615,582 
739,978 

88,152 
614,137 
702,289 

2019 

Associates 

31,607  $ 

171,015 
202,622 

14,634 
171,544 
186,178 

37,689  $ 
10,938  $ 

16,444  $ 
1,644  $ 

155,380  $ 
6,784  $ 

9,160  $ 
2,395  $ 

Total 
156,003 
786,597 
942,600 

102,786 
785,681 
888,467 

54,133 
12,582 

164,540 
9,179 

2,459  $ 

234  $ 

2,693 

$ 

$ 
$ 

$ 
$ 

$ 

$ 

$ 
$ 

$ 
$ 

$ 

116

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

The movement in the investment in projects and entities accounted for using the equity method is as follows: 

Investments in equity accounted entities 

Balance, beginning of period 
Share of net income for the year 
Share of other comprehensive income for the year 
Investments in equity accounted entities 

Capital distributions received 
Investments in equity accounted entities reclassified as held 
for sale 
Balance, end of period 

Investments held for sale 

Balance, beginning of period 
Investments in equity accounted entities classified as held for sale 
Capital distributions received 
Sale of investment  
Balance, end of period 

Share of net income for the year 
Gain on sale of investments in equity accounted entities 
Income from equity accounted investments  

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

 2020 

10,185 
4,688 
  47 
5,088 
20,008 
(5,298) 

– 
14,710 

2020 

6,978 
– 
(225) 
  (6,753) 

– 

$ 

2020 
4,688 
3,104 
7,792 

$ 

$ 

 2019 

12,517 
2,693 
37 
– 
15,247 
(1,223) 

(3,839) 
10,185 

2019 

  3,762 
3,839 
(623) 
– 
6,978 

2019 
2,693 
– 
2,693 

The Company recognizes the income and losses related to its investments in associates and joint ventures, 
as the Company has an obligation to fund its proportionate share of the net liabilities of these entities. 

The carrying amount of investments in equity accounted entities may not always equal the Company’s share 
of the net assets or net liabilities of these joint ventures and associates due to fair value adjustments including 
goodwill and the timing of capital contributions or distributions in accordance with contract terms.  

Transactions  with  these  related  parties  are  described  in  note  34.  Amounts  committed  for  future  capital 
injections to concession entities are described in note 33.  

Investments in equity accounted entities classified as held for sale 
During the year ended December 31, 2020, the Company disposed of investments in three entities accounted 
for using the equity method for proceeds of $11,034 (2019 - $nil) and received distributions of $225 (2019 - 
$623). The Company recognized net gains on the transactions of  $3,104 (2019  - $nil) which is included  in 
income  from  equity  accounted  entities  on  the  statement  of  income.  These  investments  were  previously 
classified as investments held for sale on the statement of financial position. 

Annual 2020 Consolidated Financial Statements

117

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

14. Property and equipment 

Land 

  Buildings 

Leasehold 
improvements 

2020 

Equipment, 
trucks and 
automotive 

Furniture 
and office 
equipment 

Cost 

Balance, December 31, 2019  
Acquisition (note 7) 
Additions 
Disposals 

Balance, December 31, 2020 

$ 

$ 

2,130 
436 
– 
(9) 

2,557 

$ 

12,129 
– 
52 
– 

12,181 

$ 

8,932 
6,848 
950 
– 

16,730 

$ 

92,114 
8,027 
13,061 
(14,394) 

98,808 

Accumulated depreciation 

Balance, December 31, 2019 
Disposals 
Depreciation expense 

Balance, December 31, 2020 

– 
– 
– 

– 

      6,192 
– 
527 

6,719 

              4,478 
– 
1,358 

5,836 

59,415 
(8,497) 
8,397 

59,315 

2,752 
172 
270 
(38) 

3,156 

1,956 
(30) 
201 

2,127 

$ 

Total 

118,057 
15,483 
14,333 
(14,441) 

133,432 

72,041 
(8,527) 
10,483 

73,997 

Net book value 

$ 

2,557 

$ 

5,462 

$ 

10,894 

$ 

39,493 

$ 

1,029 

$ 

59,435 

Land 

Buildings 

Leasehold 
improvements 

Equipment, 
trucks and 
automotive 

Furniture 
and office 
equipment 

Total 

2019 

Cost 

Balance, January 1, 2019  
Additions 
Disposals 

Balance, December 31, 2019 

$ 

$ 

1,716 
414 
– 

2,130 

$ 

12,432 
65 
(368) 

12,129 

$ 

8,041 
891 
– 

8,932 

$ 

88,148 
12,003 
(8,037) 

92,114 

$ 

2,592 
276 
(116) 

2,752 

112,929 
13,649 
(8,521) 

118,057 

Accumulated depreciation 

Balance, January 1, 2019 
Disposals 
Depreciation expense 

Balance, December 31, 2019 

– 
– 
– 

– 

      5,583 
(19) 
628 

6,192 

              3,844 
– 
634 

4,478 

58,473 
(7,111) 
8,053 

59,415 

1,876 
(99) 
179 

1,956 

69,776 
(7,229) 
9,494 

72,041 

Net book value 

$ 

2,130 

$ 

5,937 

$ 

4,454 

$ 

32,699 

$ 

796 

$ 

46,016 

15. Right-of-use assets 

Cost 
Balance, December 31, 2019 
Acquisition (note 7) 
Additions 
Disposals 

Balance, December 31, 2020 

Accumulated depreciation 
Balance, December 31, 2019 
Disposals 
Depreciation expense 

Balance, December 31, 2020 

Land 

Buildings 

$ 

$ 

            53 
– 
– 
– 

53 

             – 
– 
– 

– 

$ 

17,511 
15,286 
2,415 
(180) 

35,032 

2,572 
(140) 
3,625 

6,057 

2020 

Equipment, 
trucks and 
automotive 

Furniture 
and office 
equipment 

$ 

26,125 
9,827 
9,587 
(4,486) 

41,053 

6,759 
(1,506) 
4,990 
10,243 

$ 

136 
1,615 
275 
(126) 

1,900 

34 
(41) 
234 

227 

Total 

  43,825 
26,728 
12,277 
(4,792) 

78,038 

9,365 
(1,687) 
8,849 
16,527 

Net book value 

$ 

53 

$ 

28,975 

$ 

30,810 

$ 

1,673 

$ 

61,511 

118

Annual 2020 Consolidated Financial Statements

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Land 

Buildings 

2019 

Equipment, 
trucks and 
automotive 

Furniture 
and office 
equipment 

Cost 
Balance, January 1, 2019 
Additions 
Disposals 

$ 

            53 
– 
– 

$ 

Balance, December 31, 2019 

53 

$ 

15,569 
1,942 
– 

17,511 

$ 

17,411 
8,829 
(115) 

26,125 

Accumulated depreciation 
Balance, January 1, 2019 
Disposals 
Depreciation expense 

Balance, December 31, 2019 

             – 
– 
– 

– 

– 
– 
2,572 

2,572 

4,017 
(99) 
2,841 

6,759 

$ 

140 
12 
(16) 

136 

  9 
(9) 
34 

34 

Total 

33,173 
10,783 
(131) 

43,825 

4,026 
(108) 
5,447 

9,365 

Net book value 

$ 

53 

$ 

14,939 

$ 

19,366 

$ 

102 

$ 

34,460 

16. Intangible assets  

2020 

Trade 
Names 

Backlog and 
Agency 
Contracts 

Customer 
Relationships  

Computer 
Software 

Cost 
Balance, December 31, 2019 
Acquisition (note 7)  
Additions 
Balance, December 31, 2020 

Accumulated amortization 
Balance, December 31, 2019  
Amortization expense 
Balance, December 31, 2020  

$ 

–  $ 

–  $ 

–  $ 

7,000 
– 
7,000 

– 
– 
– 

4,000 
– 
4,000 

– 
333 
333 

11,000 
– 
11,000 

– 
393 
393 

8,542  $ 
3,430 
1,982 
13,954 

6,058 
1,644 
7,702 

Total 

8,542   

25,430 
1,982 
35,954   

6,058 
2,370 
8,428 

Net book value 

$ 

7,000  $ 

3,667  $ 

10,607  $ 

6,252  $ 

27,526 

Trade 
Names 

Backlog and 
Agency 
Contracts 

Customer 
Relationships  

Computer 
Software 

2019 

Cost 
Balance, December 31, 2018 
Additions 
Balance, December 31, 2019 

$ 

Accumulated amortization 
Balance, December 31, 2018  
Amortization expense 
Balance, December 31, 2019  

–  $ 
– 
– 

– 
– 
– 

–  $ 
– 
– 

– 
– 
– 

–  $ 
– 
– 

7,760  $ 
782 
8,542 

– 
– 
– 

5,185 
873 
6,058 

Total 

7,760   
782 
8,542   

5,185 
873 
6,058 

Net book value 

$ 

–  $ 

–  $ 

–  $ 

2,484  $ 

2,484 

Annual 2020 Consolidated Financial Statements

119

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

17. Goodwill 

Cost 
Balance, beginning of period 
Acquisition (note 7) 
Balance, end of period 

Accumulated impairment 
Balance, beginning of period 
Balance, end of period 

Net book value 

$ 

2020 

30,540 
16,665 
47,205 

14,151 
14,151 

2019 

$ 

30,540 
– 
         30,540 

14,151 
14,151 

$ 

33,054 

$ 

16,389 

At December 31, 2020 and 2019, the Company conducted an impairment test of its goodwill. The carrying 
value  of  goodwill  at  December  31,  2020  and  2019  was  determined  to  not  be  impaired  as  the  recoverable 
amount of the Company’s CGUs exceeded their carrying values.  

The Company allocated the carrying value of goodwill to the following CGUs: 

Goodwill 
Rideau CGU 
Nason CGU 
Stuart Olson CGU (note 7) 

2020 
            9,294 
7,095 
16,665 

$ 

2019
              9,294
7,095
–

33,054 

$ 

16,389

$ 

$ 

Key assumptions and sensitivity analysis  
The recoverable amount of the CGUs was determined based on a value-in-use calculation using cash flow 
projections from financial forecasts approved by senior management covering a three-year period. A three-
year period for the discounted cash flow analysis was used since financial projections beyond a three-year 
time period are generally best represented by a terminal value. This period is appropriate given the timing of 
the  project  backlog  and  the  predictability  of  CGU  cash  flows.  Cash  flows  from  growth  opportunities  are 
probability-weighted and relate to initiatives management expects to progress on in the medium to long-term 
time frame. These cash flows require assumptions to be made regarding the likelihood of projects progressing 
and the future economics of those projects. 

There is a significant amount of uncertainty with respect to the estimates of the recoverable amounts of the 
CGUs’  assets  given  the  necessity  of  making  key  economic  assumptions  about  the  future.  Significant 
assumptions  used  in  the  calculation  of  value-in-use  were  the  level  of  new  awards,  the  construction  gross 
margin percentage, the level of operating and capital costs, the discount rate and the terminal value growth 
rate. Budgeted net income was based on expectation of future outcomes considering  past experience, the 
Company’s  annual  business  plan  and  the  Company’s  strategic  plan  adjusted  for  a  number  of  weighted 
probabilities based on current economic conditions. Cash flows for the remaining periods were extrapolated 
using a growth rate of 2.5%. An after-tax discount rate of 15.0%, which is based on a market-based cost of 
capital, was applied in determining the recoverable amounts. The same discount rate has been used in each 
of the CGUs, given the similarity in the business and the fact that business-specific risks were adjusted for in 
the forecasted cash flows. In addition, entity-specific risks were separately factored into each CGU forecast. 
They take into consideration market rates of return, capital structure, company size, industry risk and the after-
tax cost of debt and equity. 

120

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

A sensitivity analysis of significant estimates is conducted as part of the Company’s impairment testing. A 1% 
change in the discount rate and a 0.5% change in the growth rate did not materially change the recoverable 
amount of the CGUS’s, which continue to remain in excess of their carrying values.  

18. Loans and borrowings and right-of-use liabilities 

Loans and borrowings  

Maturity  

Interest rate 

Committed revolving facility 
Committed revolving term loan facility 
Committed revolving credit facility 
Committed non-revolving term loan facility 

fully repaid 
fully repaid 
Dec 7, 2023 
Dec 7, 2023 

Variable  $ 
Variable 
Variable 
Variable 

Equipment financing  

Note payable (note 7) 

Current portion  

Non-current portion  

2020 – 2024   Fixed 2.04%-3.73% 

Variable 

  $ 

  $ 

  $ 

$ 

2020 

– 
– 
25,000 
35,000 

12,315 

598 
72,913  $ 

8,010  $ 

2019 

15,000 
10,000 
– 
– 
15,621 

– 
40,621 

5,883 

64,903  $ 

     34,738 

Syndicated credit facility  
During the  fourth quarter of 2020, the Company  entered  into a three-year,  $200,000 committed, syndicated 
credit facility (the “Syndicated facility”) consisting of the following: 

Committed revolving credit facility  

As part of the Syndicated facility, the Company replaced its previous committed revolving operating credit 
facility of $85,000 at December 31, 2019, which was increased to $100,000 during the third quarter of 2020, 
with a $165,000 committed revolving credit facility. The $165,000 committed revolving credit facility matures 
December 7, 2023. As part of the agreement, the Company provided a general secured interest in the assets 
of the Company. At December 31, 2020, the Company has $22,702 letters of credit outstanding on the facility 
and has drawn $25,000 on the facility. The full amount is recorded as non-current, as the facility is due and 
payable  December  7,  2023.  Borrowings  under  the  facility  bear  interest  at  a  rate  per  annum  equal  to  the 
Canadian prime rate plus a spread. A standby fee is payable quarterly on the unutilized portion of the facility. 
Draws  of  $25,000  (December  31,  2019  -  $15,000)  on  the  previous  committed  revolving  operating  credit 
facility were repaid in full in 2020. 

Committed non-revolving term debt facility  
As part of the Syndicated facility, the Company replaced its previous $35,000 committed, term debt revolving 
facility with  a committed  non-revolving term  loan facility totalling $35,000. As of  December 31, 2020,  the 
Company has drawn $35,000 to finance the acquisition of Stuart Olson (note 7). The loan has scheduled 
repayments due quarterly until the maturity date of September 24, 2028. Any repayment of the facility cannot 
be reborrowed. Borrowings under the facility bear interest at a rate per annum equal to the Canadian prime 
rate plus a spread. Draws of $26,250 (December 31, 2019 - $10,000) on the previous committed revolving 
term loan facility were repaid in full in 2020. 

Accordion 
The Company has an accordion of up to an additional $50,000 to increase the limit of the committed revolving 
credit facility and the committed non-revolving term debt facility. The aggregate increases to the committed 
revolving credit facility and committed non-revolving term debt facility combined may not exceed $50,000.  

Annual 2020 Consolidated Financial Statements

121

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

The Company was in full compliance with its covenants under each facility as at December 31, 2020 and 2019. 

Equipment financing  
The Company has committed term credit facilities of up to $40,000 to be used to finance equipment purchases. 
At  December  31, 2020,  $9,248 is outstanding,  of which $572 is classified as ROU liabilities (December 31, 
2019 - $12,397 is outstanding, of which $2,722 is classified as ROU liabilities). Borrowings under the facilities 
are  secured  by  a  first  charge  against  the  equipment  financed  using  the  facilities.  Interest  on  the  facilities  is 
charged at a fixed rate based on the Bank of Canada bond rate plus a spread. Interest is paid monthly in arrears.  

The  Company  also  has  multiple,  fixed  interest  rate,  term  loans  which  were  used  to  finance  equipment 
purchases.  At  December  31,  2020,  the  balance  outstanding  on  these  term  loans  amounted  to  $3,639 
(December 31, 2019 - $5,946). Principal and interest are payable monthly, and these term loans are secured 
by specific equipment of the Company.  

Letters of credit facilities 
The Company has authorized operating letters of credit facilities totalling $125,000. At December 31, 2020 the 
facilities were drawn for outstanding letters of credit of $44,490 (December 31, 2019 - $6,559). All letters of 
credit  issued  under  these  facilities  are  supported  by  the  pledge  of  Company-owned  financial  instruments, 
including cash, or through a guarantee from EDC. 

The Company has an agreement with Export Development Canada (“EDC”) to provide performance security 
guarantees of up to $75,000 for letters of credit issued by financial institutions on behalf of the Company. The 
Company uses this facility when letters of credit have been issued as contract security for projects that meet 
the EDC criteria. At December 31, 2020 EDC has issued performance security guarantees totalling $44,353 
(December 31, 2019 - $6,421).  

The  letters  of  credit  represent  performance  guarantees  primarily  issued  in  connection  with  design-build 
construction  contracts  related  to  PPP  and  other  major  construction  projects.  These  letters  of  credit  are 
supported through the hypothecation of certain financial instruments having a market value at December 31, 
2020 of $139 (December 31, 2019 - $139). 

The following table provides details of the changes in the Company’s Loans and Borrowings during the year 
ended December 31, 2020:  

Revolving 
Credit 
Facility  
15,000 
10,000 
– 
(25,000) 
– 

$ 

$ 

Syndicated 
Revolving 
Credit 
Facility   

– 
25,000 
– 
– 
25,000 

$ 

$ 

Committed 
Revolving 
Term Loan 
Facility 
10,000 
16,250 
– 
(26,250) 
– 

$ 

$ 

Syndicated 
Committed 
Non-
Revolving 
Term Loan 
Facility 

Note 
Payable 

Equipment 
financing 

– 
35,000 
– 
– 
35,000 

$ 

$ 

– 
– 
667 
(69) 
598 

$ 

$ 

15,621 
2,033 
– 
(5,339) 
12,315 

$ 

$ 

Total 

40,621 
88,283 
667 
(56,658) 
72,913 

Balance, December 31, 2019 
Proceeds 
Acquisition (note 7) 
Repayment 
Balance, December 31, 2020 

$ 

$ 

122

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

ROU liabilities 

The Company’s lease contracts are effective for periods of one to fifteen years but may have extension options.  

The following table provides details of the changes in the Company’s ROU liabilities during the period ended 
December 31, 2020:  

Balance, beginning of period 
Acquisition (note 7) 
Additions 
Interest 
Lease terminations 
Repayment  
Balance, end of period 

Current portion 

Non-current 

$ 

$ 

$ 

$ 

2020 
31,100 
46,887 
12,277 
1,262 
(79) 
(13,372) 
78,075 

18,748 

59,327 

$ 

$ 

$ 

$ 

2019 
27,029 
– 
10,783 
903 
– 
(7,615) 
31,100 

8,025 

23,075 

Potential undiscounted cash outflows of $50,636 have not been included in the measurement of the Company’s 
ROU  liabilities  as  at  December  31,  2020  because  it  is  not  reasonably  certain  that  particular  leases  will  be 
extended. Included in the statement of income were expenses related to short-term leases and leases of low-
value assets amounting to $5,697 for the year ended December 31, 2020 (2019 - $6,943). Total cash outflows 
for leases for the year ended December 31, 2020 were $19,069 (2019 - $14,558). 

Subsidiaries of the Company have established operating lease lines of credit of $31,800 with the financing arms 
of major heavy equipment suppliers to finance equipment leases. Draws under these facilities are generally 
recognized as right of use liabilities, with the lease obligations being secured by the specific leased equipment 
(note 15). At December 31, 2020, the subsidiaries had used $10,008 (December 31, 2019 - $11,653) under 
these facilities.  

19. Income taxes   

Provision for income taxes 

Income tax expense (recovery) comprised of: 
  Current income taxes 
  Deferred income taxes 

Income tax rate reconciliation 

Combined federal and provincial income tax rate 
Increase (reductions) applicable to: 
  Effect of different tax rate on equity investments 
  Non-taxable items 
  Other 
Effective rate 

$ 

$ 

2020 

18,382  $ 
(5,165) 
13,217  $ 

2020 
26.6% 

(1.5%) 
 0.4% 
1.3%     

26.8% 

2019 

(4,194) 
6,669 
2,475 

2019 
27.5% 

(10.4%) 
1.0% 
2.6% 
20.7% 

The Company's statutory tax rate is the combined federal and provincial tax rates in the jurisdictions in which 
the  Company  operates.  The  year-over-year  decline  in  the  statutory  rate  reflects  the  decline  in  the  Alberta 
corporate income tax rate in 2020. 

Annual 2020 Consolidated Financial Statements

123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Composition of deferred income tax assets and liabilities 

Provisions and accruals 
Pension and other compensation 
Timing of recognition of construction profits 
Property and equipment 
Right of use assets and liabilities and lease receivables 
Intangible assets 
Investment in equity accounted entities 
Other  
Tax loss carry forward 

Presentation in the statement of financial position 
   Deferred income tax asset 
   Deferred income tax liability 

$ 

$ 

2020 
4,187  $ 
 4,544 
(17,748) 
(4,305) 
3,464 
(5,792) 
(911) 
(2,191) 
28,049 

9,297  $ 

2019 
2,559 
2,245 
(35,745) 
(3,854) 
620 
(203) 
  (2,715) 
195 
  34,317 
(2,581) 

                 32,253 
(22,956) 

$ 

                  9,297  $ 

 11,287 
(13,868) 
                 (2,581) 

The Company has deferred tax assets in the amount of $945 that have not been recognized in these financial 
statements in respect of capital losses realized on the disposal of bonds and preferred share investments in 
2011, 2013 and 2015.  A deferred tax asset has not been recognized because it is not probable the Company 
will generate future taxable capital gains.  

Included in the tax loss carry forward balance in 2019 is $21,768 related to an alternative finance project, which 
was off-set by a deferred tax liability of $21,793 included in timing of recognition of construction profits, and a 
deferred  tax  asset  of  $179  included  in  provisions  and  accruals.  In  2020  this  project  achieved  substantial 
completion and the tax loss carry forward balance was utilized to off-set the tax liability.  

2020 

Balance   

December 31, 
2019  

Recognized   
in profit or 
loss 

Recovery in 
Other 
Comprehensive 
Income  

Disposition 
of equity 
investment   
(note 13) 

Acquisition   

(note 7) 

Balance   

December 31, 
2020 

Provisions and accruals 
Pension and other compensation 
Timing of recognition of construction 
profits 
Property and equipment 
ROU assets and liabilities 
Intangible assets 
Investments in equity accounted 
entities 
Other 
Tax loss carry forward 

$ 

$ 

2,559 
2,245 

$ 

(35,745) 
(3,854) 
620 
(203) 

(2,715) 
195 
34,317 
(2,581) 

$ 

1,175 
1,436 

22,060 
(562) 
  (117) 
653 

2,982 
(826) 
(21,636) 
5,165 

– 
(371) 

– 
– 
– 
– 

– 
– 
– 
(371) 

– 
– 

– 
– 
– 
– 

(1,178) 
– 
– 
(1,178) 

2019 

453 
1,234 

$ 

(4,063) 
111 
2,961 
(6,242) 

– 
(1,560) 
15,368 
8,262 

$ 

4,187 
4,544 

(17,748) 
(4,305) 
3,464 
(5,792) 

(911) 
(2,191) 
 28,049 
9,297 

Provisions and accruals 
Other compensation 
Timing of recognition of construction profits 
Property and equipment 
Right of use assets and liabilities 
Intangible assets 
Investments in equity accounted entities 
Other 
Tax loss carry forward 

Balance   

December 31, 
2018  
                 2,306 
1,175 
(9,028) 
(1,083) 
(736) 
(321) 
(3,293) 
701 
13,833 
3,554 

$ 

$ 

$ 

$ 

Recognized   

$ 

in profit or loss 
253 
1,070 
(26,717) 
(2,771) 
822 
118 
578 
(506) 
20,484 
(6,669)  $ 

Adoption of 
IFRS 16 
– 

$ 

– 
– 
534 
– 
– 
– 
– 
534 

$ 

Balance   

December 31, 
2019 
2,559 
2,245 
(35,745) 
(3,854) 
620 
(203) 
(2,715) 
195 
34,317 
(2,581) 

124

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

20. Provisions 

Balance, December 31, 2019 
Acquisition (note 7) 
Provisions made during the period 
Provisions used during the period 
Provisions reversed during the period 
Balance, December 31, 2020 

Balance, December 31, 2018 
Provisions made during the period 
Provisions used during the period 
Provisions reversed during the period 
Balance, December 31, 2019 

Warranty 
claims and 
other 

$ 

                5,218  $ 

9,076 
22,578 
(16,761) 
(7,400) 
12,711  $ 

$ 

$ 

                6,666  $ 

20,588 
(20,416) 
(1,620) 
 5,218  $ 

$ 

Legal 

Total 

2,545  $ 
5,406 
6,903 
(986) 
(3,160) 
10,708  $ 

$ 

1,927 
1,365 
(549) 
(198) 
2,545  $ 

7,763 
14,482 
29,481 
(17,747) 
(10,560) 
23,419 

8,593 
21,953 
(20,965) 
(1,818) 
7,763 

Various claims and litigation arise in the normal course of the construction business. It is management’s opinion 
that adequate provision has been made for any potential settlements relating to such matters and that they will 
not materially affect the financial position or future operations of the Company. 

21. Other liabilities  

Liabilities for cash-settled share-based compensation plans 
(note 23) 
Leasehold inducements 
TRS derivatives (note 12) 
Interest rate swaps 

Less: current portion 
   Cash-settled share-based compensation plans (note 23) 
   Leasehold inducements 
   TRS derivatives (note 12) 
   Interest rate swaps 
Current portion 

Non-current portion 

$ 

$ 

$ 

$ 

2020 

13,929  $ 

1,808 
– 
51 
15,788  $ 

1,795 
164 
– 
51 
2,010  $ 

13,778  $ 

2019 

8,443 
1,964 
271 
58 
10,736 

1,762 
261 
175 
7 
2,205 

8,531 

As at December 31, 2020, the Company recognized an asset on the TRS derivatives which are recorded in 
other assets on the statement of financial position (note 12). 

22. Pension obligations 

The following pension obligations were acquired on the acquisition of Stuart Olson (note 7): 

DC Pension Plans 
The total expense recognized in the statement of income during the year ended December 31, 2020 of $154 
represents contributions to these plans by the Company at rates specified in the rules of the plans. 

Annual 2020 Consolidated Financial Statements

125

 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

DB Pension Plans 
The  Company  maintains  two  non-contributory  DB  provisions  that  cover  salaried  employees  for  two  of  the 
operating entities. Annual employer contributions to the DB provisions, determined by an independent actuary, 
meet minimum amounts required by provincial pension supervisory authorities. The benefits provided by the 
DB provisions of the pension plans are based on years of service and final average earnings of the employees 
who are members of the plans. 

Future benefits 

Wholly or partially funded defined benefit obligation 
Fair value of plan assets 
Recognized liability for defined benefit obligations  

Fair market value of plan assets 

Equity securities 
Debt securities 
Cash and cash equivalents 

Reconciliation of amounts in the financial statements 

Accrued benefit obligation 
Balance, at acquisition (note 7) 
Employer current service cost 
Interest cost on the defined benefit obligation 
Benefit payments 
Actuarial loss due to changes in financial assumptions 
Balance, end of period 

Fair value of plan assets 
Balance, at acquisition (note 7) 
Employer contributions 
Interest income on plan assets 
Actuarial gain on plan assets, excluding interest income 
Benefit payments 
Administration costs 
Balance, end of period 

Net pension liability 
Funded status - deficit 

$ 

$ 

  $ 

  $ 

$ 

$ 

$ 

$ 

$ 
$ 

2020 
39,912 
36,312 
3,600 

2020 
23,188 
12,916 
208 
36,312 

2020 

39,065 
64 
291 
(469) 
961 
39,912 

2020 

34,042 
144 
269 
2,501 
(469) 
(175) 
36,312 

2020 
3,600 
3,600 

During the period ended December 31, 2020, $228 was recorded in general and administrative expenses in 
the statement of income, and a gain of $1,540 before tax, was recorded in other comprehensive income, relating 
to the DB plans. The gain relates to investment earnings being greater than the expected interest income on 
the  plans'  assets,  and  is  partially  offset  by  a  loss  due  to  changes  in  financial  assumptions,  specifically  a 
decrease in the assumed discount rate from September 30, 2020 to December 31, 2020. 

126

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Actuarial assumptions 

Discount rate on net benefit obligations 
Rate of compensation increase 
Inflation rate 

2020 
2.5% 
3.0% 
2.0% 

The discount rate used to establish the pension obligation is based on AA-rated Canadian corporate bond yields 
at the measurement date. A change of 100 basis points in the discount rate at the reporting date would have 
increased or decreased the accrued benefit obligation by $5,659. 

23. Share-based compensation plans  

Medium term incentive plan (“MTIP”), Equity incentive plan (“EIP”) and Deferred share unit (“DSU”) 
plan 

The terms of the Company’s MTIP, EIP and DSU plan are described in note 4. 

MTIP liability 
EIP liability 
DSU liability 
Liabilities for cash-settled share-based 
compensation plans  

Less: current portion 
  MTIP liability 
  EIP liability 
Current portion 

Non-current portion 

Balance, beginning of the period 
Granted 
Vested and paid 
Granted – notional dividends 
Change in fair value and forfeitures 
Balance, end of the period * 

Less: current portion 

Non-current portion 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

2020 
2,865 
5,618 
5,446 

13,929 

491 
1,304 
1,795 

12,134 

2020 
4,994 
1,849 
(1,486) 
182 
2,944 
8,483 

1,795 

6,688 

$ 

$ 

$ 

$ 

MTIP & EIP 

$ 

$ 

$ 

2019 
1,069 
3,925 
3,449 

8,443 

257 
1,505 
1,762 

6,681 

2019 
2,562 
2,011 
(1,295) 
116 
1,600 
4,994 

1,762 

3,232 

* Includes the effects of the performance multiplier on PSUs of $3,102 (December 31, 2019 - $1,718).  

During the year ended December 31, 2020 the Company granted 664,821 units, 499,398 units, and 198,314 
units under the MTIP, EIP and DSU plans respectively  (2019 -  163,143 units, 582,226 units, and 185,867 
units under the  MTIP, EIP and DSU plans respectively).  

Annual 2020 Consolidated Financial Statements

127

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

As at December 31, 2020, a total of 2,212,754 unvested phantom units of the MTIP and EIP (December 31, 
2019 – 1,482,683) are outstanding and valued at $19,718 (December 31, 2019 - $11,057) of which $8,483 
has been recognized to date in the statement of income (December 31, 2019 - $4,994).  

As  at  December  31,  2020,  a  total  of  680,718  DSU  phantom  units  (December  31,  2019  –  482,404)  were 
outstanding and valued at $5,446 (December 31, 2019 - $3,449). 

Compensation expense accrued for PSUs issued under the Company’s EIP is dependent on an adjustment to 
the final number of PSUs that will vest based on a performance multiplier that is estimated by management 
and  approved  by  the  Board  of  Directors. The  performance  multiplier  applicable  to  the  PSUs  is  determined 
based on relative total shareholder return (“TSR”) and based on the achievement of earnings before income 
tax compared to the Company’s business plan. The performance multiplier for achievement of TSR is based 
on a comparison against TSR achieved in the performance period by comparative companies. The range of 
the performance multiplier for the TSR and the achievement of earnings before income tax is between zero to 
a maximum of 2, if the Company performs within the highest range of its performance targets. RSU awards 
are set at a specific number of shares which are time-vested with no performance multiplier.  

The Company entered into TRS derivative contracts for the purpose of managing its exposure to changes in 
the fair value of its MTIP, EIP and DSU share-based compensation plans, due to changes in the fair value of 
the Company’s common shares. The Company recognized a gain  on these derivatives in the statement  of 
income  in  general  and  administrative  expenses  for  the  year  ended  December  31,  2020  of  $1,875  (2019  - 
$1,947 gain). 

Stock option plan 

The Company has a Stock Option Plan that provides all option holders the right to receive common shares in 
exchange for the options exercised. The Board of Directors selects eligible employees to be granted options, 
the number of options granted, the exercise price, the term of the option and the vesting periods. The number 
of  common  shares  issuable  under  the  Stock  Option  Plan  shall  not  exceed  10%  of  the  number  of  common 
shares outstanding. With the approval of the Equity Incentive Plan in May 2017, the Board of Directors has 
resolved to suspend the stock option plan.  

Outstanding at December 31, 2018 
Expired during the year 
Outstanding at December 31, 2019 
Forfeited during the year  
Outstanding at December 31, 2020 

Number of 
stock options 
outstanding 
490,000 
(390,000) 
100,000 
(100,000) 
– 

$ 

$ 

Weighted 
average 
exercise price  
           13.55 
13.98 
11.87 
11.87 
– 

There was $nil share-based compensation expense related to the stock options recognized during the year 
ended December 31, 2020 (2019 – $nil). 

128

Annual 2020 Consolidated Financial Statements

 
 
  
 
 
 
   
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

24. Shareholders’ capital 

The Company is authorized to issue an unlimited number of common shares. The Company is authorized to 
issue preference shares in series with rights set by the Board of Directors, up to a balance not to exceed 35% 
of  the  outstanding  common  shares.  As  at  December  31,  2020  and  2019,  no  preferred  shares  have  been 
issued. Transaction costs of $124 directly attributable to the issuance of common shares are recognized as a 
deduction from shareholders’ capital. 

2020 

Number of 
shares 

42,516,853    $ 
10,522,076 
53,038,929  $ 

Amount 

42,527 
65,537 
108,064 

2019 

Number of 
shares 

42,516,853    $ 

– 

42,516,853  $ 

Balance, beginning of period 
Common shares issued (note 7) 
Balance, end of period 

25. Earnings per share 

Net income (basic and diluted) 

  $ 

36,103 

$ 

2020 

Amount 

42,527 
– 
42,527 

2019 

9,484 

Weighted  average  number  of  common  shares 
(basic and diluted) 

45,334,239 

42,516,853 

Basic and diluted earnings per share 

  $ 

0.80 

$ 

0.22 

For the year ended December 31, 2020, nil options (2019 - 100,000 options) were excluded from the diluted 
weighted average number of common shares calculation, as their effect would have been anti-dilutive.  

26. Finance income  

Interest income on lease receivables 
Other interest income 

27. Finance and other costs 

Interest on loans and borrowings 
Interest on ROU liabilities 
(Gain) loss on interest rate swaps (note 11 and note 21) 
Interest on non-recourse project financing (note 11) 
Other 

Annual 2020 Consolidated Financial Statements

$ 

$ 

$ 

$ 

2020 

51  $ 

1,460 
1,511  $ 

2020 
2,989  $ 
1,262 
(683) 
3,522 
416 

7,506  $ 

2019 
– 
2,596 
2,596 

2019 
2,331 
903 
67 
1,995 
262 
5,558 

129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

28. Personnel costs 

Short-term employee benefits 
Defined benefit and defined contribution plan expense (note 22) 
Deferred compensation 

$ 

$ 

2020 
330,580 
322 
6,971 
337,873 

$ 

$ 

2019 
233,634 
– 
5,354 
238,988 

For the year ended December 31, 2020, personnel costs of $291,433 were included in costs of construction 
(2019 – $202,450) and $46,440 in general and administrative expenses (2019 – $36,538). Short-term employee 
benefits consist primarily of salaries and bonuses, as well as employee share purchase plan (“ESPP”) expense 
and  employee  registered  retirement  savings  plan  (“RRSP”)  matching  contributions.  Deferred  compensation 
consists of share-based compensation expenses.  

29. Government assistance 

On April 11, 2020, the Government of Canada passed the CEWS to support employers facing financial hardship 
as  measured  by  certain  revenue  declines  as  a  result  of  the  COVID-19  pandemic.  Certain  entities  of  the 
Company  qualified  for  CEWS  in  the  March  to  December  2020  qualification  periods.  During  the  year  ended 
December 31, 2020, the Company recognized a recovery of compensation expense in costs of construction of 
$21,196  and  general  and  administrative  expenses  of  $3,590.  As  at  December  31,  2020,  the  Company 
recognized an amount receivable related to CEWS of $25,847 included in accounts receivable in the statement 
of financial position. Included in the amount receivable is an amount of $9,995 from the acquisition of Stuart 
Olson, net of acquisition adjustments of $144. The Government of Canada announced they will extend CEWS 
until at least June 2021 and the Company will continue to monitor its eligibility under the program.  

30. Other cash flow information   

Changes in non-cash working capital relating to operating activities 

Accounts receivable 
Contract assets 
Contract assets – alternative finance projects* 
Inventory and prepaid expenses 
Other assets 
Accounts payable 
Contract liabilities 
Provisions 
EIP and other 

$ 

$ 

2020 
153,398 
4,521 
75,067 
(1,260) 
5,971 
(119,903) 
(48,388) 
1,173 
(1,486) 
69,093 

$ 

$ 

2019 
(75,911) 
(2,606) 
(68,054) 
(262) 
  (5,240) 
36,563 
52,123 
(830) 
(2,052) 
(66,269) 

* Contract assets – alternative finance project changes are driven by design-build-finance projects. Refer to note 11 
for loan proceeds to fund contract assets – alternative finance projects. 

130

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

Change in liabilities arising from financing activities 

Dividend 
payable  

Non- 
recourse 
project 
financing 

Loans and 
borrowings 

ROU 
liabilities 

Balance, December 31, 2019 
Acquisition (note 7) 

$ 

1,382  $ 
– 

85,374  $ 
– 

40,621  $ 
667 

31,100  $ 
46,887 

Total 
158,477 
47,554 

Cash flows 
Proceeds 
Repayments 
Dividends paid on shares 

Non-cash changes 
Net additions to ROU liabilities 
Transaction costs, net of amortization 
Change  in  fair  value  of  interest  rate 
swaps 
Interest accretion 
Dividends declared 

– 
– 
(17,607) 

– 
– 

– 
– 
17,949 

46,782 
(131,849) 
– 

88,283 
(56,658) 
– 

– 
(13,372) 
– 

135,065 
(201,879) 
(17,607) 

– 
369 

(676) 
– 
– 

– 
– 

– 
– 
– 

12,198 
– 

– 
1,262 
– 

12,198 
369 

(676) 
1,262 
17,949 

Balance, December 31, 2020 

$ 

1,724 

$ 

–  $ 

72,913 

$ 

78,075  $ 

152,712 

Dividend 
payable  

Non- 
recourse 
project 
financing 

Loans and 
borrowings 

ROU 
liabilities 

Balance, December 31, 2018 

$ 

1,382  $ 

11,824  $ 

21,198  $ 

27,029  $ 

Cash flows 
Proceeds 
Repayments 
Dividends paid on shares 

Non-cash changes 
Net additions to ROU liabilities 
Transaction costs, net of amortization 
Change  in  fair  value  of  interest  rate 
swaps 
Interest accretion 
Dividends declared 

– 
– 
(16,582) 

– 
– 

– 
– 
16,582 

72,832 
– 
– 

– 
655 

63 
– 
– 

24,536 
(5,113) 
– 

– 
– 

– 
– 
– 

– 
(7,615) 
– 

10,783 
– 

– 
903 
– 

Total 
61,433 

97,368 
(12,728) 
(16,582) 

10,783 
655 

63 
903 
16,582 

Balance, December 31, 2019 

$ 

1,382 

$ 

85,374  $ 

40,621 

$ 

31,100  $ 

158,477 

31. Financial instruments  

Fair values 
Determination of fair value and the resulting hierarchy requires the use of observable market data whenever 
available. The classification of a financial instrument in the hierarchy is based upon the lowest level of input 
that is significant to the measurement of fair value. 

The hierarchy of inputs is summarized below: 
i.  Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; 
ii.  Level 2 - inputs other than quoted prices included in level 1 that are observable for the asset or liability, 

either directly or indirectly; and 

iii.  Level 3 - inputs used in a valuation technique are not based on observable market data in determining fair 

values of the instruments. 

Annual 2020 Consolidated Financial Statements

131

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

The  Company’s  non-recourse  project  financing  interest  rate  swaps  (note  11),  interest  rate  swaps  and  total 
return swap derivative contracts (note 12 and note 21) are classified as Level 2 measurements in the fair value 
hierarchy. The Company does not have any financial instruments classified as Level 3 that are carried at fair 
value. There were no transfers between levels in the fair value hierarchy during the years ended December 31, 
2020 and 2019. 

The fair value of the Company’s loans and borrowings approximate their carrying values on a discounted cash 
flow basis as the majority of these obligations bear interest at market rates. The fair values of the remaining 
financial instruments approximate their carrying value due to their relatively short periods to maturity.  

Financial Risk Management 
In the normal course of business, the Company is exposed to several risks related to financial instruments that 
can affect its operating performance. These risks and the actions taken to manage them are as follows: 

i.  Credit Risk 

Credit  risk  relates  to  the  risk  of  financial  loss  to  the  Company  if  a  customer  or  counterparty  to  a  financial 
instrument fails to meet their contractual obligation.  

With respect to accounts receivable, concentration of credit risk is limited due to the geographic dispersion of 
revenues  and  a  diversified  customer  base.  Before  entering  into  any  construction  contract  and  during  the 
course of the construction project, the Company goes to considerable lengths to satisfy itself that the customer 
has adequate resources to fulfil its contractual payment obligations as construction work is completed. If a 
customer was unable or unwilling to pay the amount owing, the Company will generally have a right to register 
a lien against the project that will normally provide some security that the amount owed would be realized.  

A significant customer is one that represents 10% or more of contract revenue earned during the year. For 
the year ended December 31, 2020, the Company had revenue of $206,255 from one significant customer 
(2019 - $188,070). 

Short-term deposits and short-term investments are subject to minimal credit risk as they are placed with only 
major Canadian financial institutions. As is reasonably practical, these investments are placed with several 
different Canadian financial institutions, thereby reducing the Company’s exposure to a default by any one 
financial institution.  

At December 31, 2020, accounts receivable outstanding for greater than 90 days and considered past due 
by the Company’s management represent 17.2% (December 31, 2019 – 17.1%) of the balance of progress 
billings on construction contracts receivable. Management has recorded an allowance of $1,471 (December 
31, 2019 - $1,538) against these past due receivables, net of amounts recoverable from others. 

Up to 12   
months  

Over 12 
months 

Trade receivables 
Impairment 
Total Trade receivables 

$ 

$ 

30,223  $ 

28,517  $ 

                    (8) 
             30,215  $ 

      (1,463) 
     27,054 

$ 

2020 
58,740  $ 
(1,471) 
57,269  $ 

2019 
47,174 
(1,538) 
45,636 

Amounts past due 

132

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

The movement in the allowance for impairment in respect of loans and receivables during the period was as 
follows: 

Balance, beginning of period 
Impairment loss recognized 
Amounts written off as uncollectible 
Amounts recovered 

Balance, end of period   

ii.  Liquidity risk 

$ 

$ 

2020 
1,538  $ 

747 
(814) 
– 

1,471  $ 

2019 
1,271 
313 
– 
(46) 

1,538 

Liquidity risk relates to the risk that the Company will not be able to meet its financial obligations as they 
become due. The Company manages this risk through management of its capital structure, monitoring and 
reviewing  actual  and  forecasted  cash  flows  and  the  effect  on  bank  covenants,  and  maintaining  unused 
credit facilities where possible to ensure there are available cash resources to meet the Company’s liquidity 
needs. In managing liquidity risk, the Company has access to committed short and long-term debt facilities 
as well as equity markets, the availability of which is dependent on market conditions. 

The Company has working capital of $135,514 which is available to support surety requirements related to 
construction projects. As a component of working capital, the Company maintains significant balances of 
cash and cash equivalents and investments in liquid securities. These investments, less $139 hypothecated 
to support outstanding letters of credit and $55,058 held in restricted accounts, are available to meet the 
financial obligations of the Company as they become due. Refer to note 18 in respect of the Syndicated 
facility entered into in the fourth quarter of 2020 and the Company’s other debt instruments, which further 
improves the Company’s access to liquidity. As at December 31, 2020, the Company had a total undrawn 
balance on its Syndicated facility of $167,298 (December 31, 2019 - $81,496 undrawn on its revolving credit 
facility and committed revolving term loan facility). The Company also has committed term credit facilities 
of up to $40,000 to be used to finance equipment purchases of which $30,752 is undrawn as at December 
31, 2020  (December 31, 2019 - $22,603). The Company believes that it has access to sufficient funding 
through  the  use  of  these  facilities  and  its  cash  and  cash  equivalents  to  meet  its  foreseeable  operating 
requirements. 

The following are the contractual obligations, including estimated interest payments, as at December 31, 
2020, in respect of the financial obligations of the Company. Interest payments on the committed revolving 
credit  facility,  committed  non-revolving  term  loan  facility  and  note  payable  are  not  included  in  the  table 
below since they are subject to variability based upon outstanding balances at various points throughout 
the period. 

Trade payables 

Dividends payable 

ROU liabilities 

Committed revolving credit 
facility 
Committed non-revolving term 
loan 

Equipment financing 

Note payable 

Carrying 
amount  

Contractual 
cash flows  

Not later 
than 1 
year 

2 – 3   
years  

4 – 5   
years 

$ 

490,470  $ 

490,470  $  479,189  $ 

11,281  $ 

Later 
than 5 
years 

– 

– 

–  $ 

– 

1,724 

78,075 

1,724 

87,881 

1,724 

20,646 

– 

32,762 

18,860 

15,613 

25,000 

25,000 

– 

25,000 

– 

– 

35,000 

12,315 

598 

35,000 

12,807 

598 

1,750 

5,973 

598 

8,750 

6,066 

– 

9,800 

14,700 

768 

– 

– 

– 

$ 

643,182  $ 

653,480  $  509,880  $ 

83,859  $ 

29,428  $  30,313 

Annual 2020 Consolidated Financial Statements

133

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

As disclosed in notes 4 and 23, payments required pursuant to the Company’s MTIP granted in 2018 and 
2019 are due on the vesting dates of November 2021 and November 2022 respectively, or upon retirement, 
if earlier. Pursuant to the Company’s MTIP granted in 2020, payments are due on the vesting dates between 
December 2022 and November 2023 respectively, or upon retirement, if earlier. Payments pursuant to the 
Company's  EIP  granted  in  2018,  2019  and  2020  are  due  by  December  2021,  December  2022  and 
December 2023, respectively.  Payments pursuant to the Company's DSU Plan are cash settled when the 
eligible Director ceases to hold any position within the Company. 

iii.  Market risk 

Market risk is the risk that changes in market prices, such as interest rates, equity prices and corporate 
bond yields, will affect the Company’s income or the value of its holdings in liquid securities. The discount 
rate used to establish the pension obligation was determined by reference to market interest rates on AA-
rated  corporate  bonds  with  cash  flows  that  approximate  the  timing  and  amount  of  expected  benefit 
payments.  

At December 31, 2020, the interest rate profile of the Company's loans and borrowings and non-recourse 
project financing was as follows: 

Fixed-rate facilities 
Variable-rate facilities 
Non-recourse project financing facilities 

Total loans and borrowings and non-recourse project financing 

$ 

$ 

2020 
12,315  $ 
60,598 
– 
72,913  $ 

2019 
15,621 
25,000 
85,067 

125,688 

Interest rate risk is the risk that the fair value of future cash flows of a financial  instrument will fluctuate 
because of changes in market interest rates. The Company is exposed to interest rate risk to the extent 
that  its  credit  facilities  and  TRS  derivatives  are  based  on  variable  rates  of  interest.  Interest  rate  risk  is 
managed through the use of interest rate swaps. 

For the year ended December 31, 2020, a one percent change in the interest rate applied to the Company's 
variable  rate  long-term  debt  would  change  annual  income  before  income  taxes  by  approximately  $606 
(2019 – $250). 

The Company has certain share-based compensation plans, whereby the values are based on the common 
share price of the Company. The Company has fixed a portion of the settlement costs of these plans by 
entering  into  various  TRS  derivatives  maturing  between  2021  and  2022.  The  TRS  derivatives  are  not 
designated as a hedge. The change in the value of the TRS derivatives is recorded each quarter based on 
the difference between the fixed price and the market price of the Company’s common shares at the end 
of each quarter. The TRS derivatives are classified as derivative financial instruments. For the year ended 
December 31, 2020,  a 10  percent change in the share price  applied to the Company's TRS  derivatives 
would change income before income taxes by approximately $1,175 (2019 – $987). 

iv. 

Currency risk 

Currency risk is the risk that fluctuations in currency exchange rates will affect the Company’s net income. 
The  Company  uses  foreign  currency  to  settle  payments  to  vendors  and  subcontractors  in  the  foreign 
currency.  For  the  year  ended  December  31,  2020,  a  10%  movement  in  the  Canadian  and  U.S.  dollar 
exchange rate would have changed income by approximately $210 (2019 – $141). 

134

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

32. Capital management  

The Company’s capital management objectives are to: 

i.  Ensure that the Company has the financial capacity to support its current and anticipated volume and mix 

of business and to manage unforeseen operational and industry developments. 

ii.  Ensure that the Company has sufficient financial capacity to support the execution of its longer-term growth 

strategies. 

iii.  Provide its investors with the maximum long-term returns on equity and to generate sufficient cash flow to 

sustain shareholder dividends and payments on long-term debt. 

In the management of capital, the Company defines capital as shareholders’ equity and loans and borrowings.  
Loans and borrowings include the current and non-current portions of long-term debt and finance leases. 

The  Company  manages  its  capital  within  the  investment  policy  approved  by  the  Board  of  Directors.  The 
Company  makes  changes  to  capital  based  on  changes  in  business  conditions  and  the  mix  of  construction 
contracts. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends 
paid to Company shareholders, issue new debt or repay existing debt, issue new Company shares, and to a 
lesser degree, may adjust capital expenditures.  

As a component of working capital, the Company maintains significant balances of cash and cash equivalents.  
These cash and cash equivalents are intended to cover net current liabilities, fund current dividends payable 
to  shareholders  and  provide  capital  to  support  surety  and  contract  security  requirements,  including  issuing 
letters of credit relating to the current and near-term backlog of construction projects. 

The amounts of shareholders’ equity, working capital and loans and borrowings at December 31, 2020 and 
December 31, 2019 are as follows: 

Shareholders’ equity 
Working capital 
Loans and borrowings 

33. Commitments and contingencies 

Commitments 

$ 
$ 
$ 

2020 
212,610 
135,514 
72,913 

$ 
$ 
$ 

2019 
127,720 
80,503 
40,621 

Outstanding surety lien bonds issued on behalf of the Company in connection with liens by subcontractors and 
suppliers at December 31, 2020 totalled $93,375 (December 31, 2019 - $56,606). The Company has acquired 
minority equity interests in a number of PPP concession entities (note 13), which require the Company to make 
$768 in future capital injections. These commitments have been secured by letters of credit totalling $1,918 
(December 31, 2019 - $5,859).  

Contingencies 

The  Company  is  contingently  liable  for  the  usual  contractor’s  obligations  relating  to  performance  and 
completion  of  construction  contracts.  These  include  the  Company’s  contingent  liability  for  the  performance 
obligations of its subcontractors. Where possible and appropriate, the Company obtains performance bonds, 
subcontract/supplier insurance or alternative security from subcontractors. However, where this is not possible, 
the Company is exposed to the risk that subcontractors will fail to meet their performance obligations. In that 
eventuality, the Company would be obliged to complete the subcontractor’s contract, generally by engaging 
another subcontractor, and the cost of completing the work could exceed the original subcontract price. The 
Company  makes  appropriate  provision  in  the  financial  statements  for  all  known  liabilities  relating  to 
subcontractor defaults. 

Annual 2020 Consolidated Financial Statements

135

 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

34. Related party transactions 

Balances and transactions between the Company and its subsidiaries, which are related parties, have been 
eliminated  on  consolidation.  Each  of  the  related  party  transactions  described  below  was  made  on  terms 
equivalent to those that prevail in arm’s length transactions unless otherwise noted. 

Compensation of key management personnel represents the aggregate amounts paid and accrued to the 
Company’s Named Executives and the Company’s Board of Directors. 

Short-term benefits  
Share-based compensation 

$ 

$ 

2020 
6,808  $ 
3,388 

10,196  $ 

2019 
4,375 
4,126 
8,501 

A Director or related parties hold positions in other entities that result in them having control over the financial 
reporting or operating policies of those entities. The aggregate value of transactions during the year with entities 
over  which  Directors  have  control  was  $657  (2019  -  $1,935)  and  the  outstanding  balance  receivable  at 
December 31, 2020 was $nil (December 31, 2019 - $891). 

Transactions with proportionally consolidated joint arrangements 

The  Company  provides  services  of  its  employees,  management  services,  cost  reimbursements,  parental 
guarantees and letters of credit to the joint arrangements. These services were transferred at the exchange 
amount, agreed to between the parties.  The amounts recognized for services provided by the Company for the 
year ended December 31, 2020 totalled $47,349 (2019 - $35,565). 

The Company has accounts receivable from the joint arrangements at December 31, 2020 totalling $22,314 
(December 31, 2019 - $4,154).   

Transactions with equity accounted joint arrangements 
The  Company  and  its  proportionately  consolidated  joint  arrangements  (note  3),  provide  development  and 
construction services to its concession investments in associates and joint ventures which are in the normal 
course of business and on commercial terms. The Company’s proportionate share of the amounts billed for 
construction  services  provided  by  these  joint  arrangements  for  the  year  ended  December  31,  2020  totalled 
$16,492 (2019 – $98,889), of which $28,257 has been recognized in revenue in 2020 (2019 - $109,574). The 
Company’s proportionate share of payments made to the joint arrangements for the year ended December 31, 
2020 totalled $11,849 (2019 - $6,827). These amounts are not eliminated as they are deemed to be realized 
by the Company. 

The Company and  its  proportionately consolidated joint arrangements  have accounts receivable from these 
concession investment entities. The Company’s proportionate share of accounts receivable at December 31, 
2020 totalled $14,341 (December 31, 2019 - $39,867). The Company also has notes receivable from an equity 
accounted joint arrangement at December 31, 2020 totalling $1,806 (December 31, 2019 - $8,069).  

136

Annual 2020 Consolidated Financial Statements

 
 
 
 
 
 
 
 
 
 
  
 
 
 
Bird Construction Inc. 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2020 and 2019  
(in thousands of Canadian dollars, except per share amounts) 

35. Subsequent event 

Eligible dividends declared with a record date subsequent to the financial statement date 

As  of  the  date  of  the  approval  of  these  financial  statements,  the  Board  of  Directors  has  declared  eligible 
dividends with a record date subsequent to the financial statement date for the following months:  

Eligible dividends declared 
January dividend 
February dividend 
March dividend 
April dividend 

Record date  
January 29, 2021 
February 26, 2021 
March 31, 2021 
April 30, 2021 

Payment date  
February 19, 2021 
March 19, 2021 
April 20, 2021 
May 20,2021 

  Dividend per share 
$0.0325 
$0.0325 
$0.0325 
$0.0325 

Annual 2020 Consolidated Financial Statements

137

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bird Construction Inc. 
Five Year Summary 
December 31, 2020 
(in thousands of Canadian dollars, except Other Information) 

OPERATING RESULTS

Revenue 

Income before income taxes

Income taxes 

Net income

Dividends declared to shareholders

Cash flows from operations before changes 
in non-cash working capital

Notes:

2020

2019

2018

2017 (1)

2016 (2)

1,504,432

1,376,408

1,381,784

1,418,557

1,589,868

49,320 

13,217 

36,103 

17,949

11,959 

        (2,674)

2,475 

        (1,661)

9,484 

        (1,013)

16,582

16,582

13,078

4,242

8,836

16,582

34,327

9,325
25,002(2)

32,297

71,696

30,201

12,320

26,938

48,449

$

$

$

$

$

(1) 2017 reported figures  have been restated applying IFRS 15.
(2) Adjusting 2016 net income for the non-cash impairment charge, the Company's adjusted earnings was $27,741 (a non-GAAP measure).

FINANCIAL POSITION

Current assets 

Current liabilities
Working capital 

Property and equipment 
Right-of-use assets

Shareholders’ equity 

Notes:

2020

2019

2018(1)

2017(2)

2016(3)

$

$

$
$

$

820,136

684,622

135,514

59,435
61,511

212,610

729,358

648,855

80,503

46,016
34,460

546,553

476,338

70,215

43,153
13,073

607,979

523,901

84,078

52,397
n/a

729,799

614,527

115,272

45,517
n/a

127,720

136,229

153,816

161,543

(1) 2018 Property and equipment figures have been reclassified following the adoption of IFRS 16 on January 1, 2019.
(2) 2017 reported figures have been restated applying IFRS 15.
(3) 2016 reported figures  have been restated on January 1, 2017 after the adoption of IFRS 15.

BACKLOG

$

2,682,498

1,547,427

1,295,940

1,186,000

1,137,000

2020

2019

2018

2017

2016

OTHER INFORMATION

Weighted average number of shares 
outstanding 
Return on revenue (1)

45,334,239

42,516,853

42,516,853

42,516,853

42,516,853

%             2.40 

            0.69 

          (0.07)

            0.62 

            1.57 

Return on prior year shareholders’ equity (2)

%

          28.27 

            6.96 

          (0.66)

            5.47 

          14.63 

Net income per share

Book value per share

$             0.80 

            0.22 

          (0.02)

            0.21 

0.59

$             4.69 

            3.00 

            3.20 

            3.62 

            3.80 

(1) Return on revenue is derived by dividing net income by construction revenue. 

(2) Return on prior year shareholders' equity is derived by dividing current year net income by the prior year's shareholders' equity balance.

Eligible Dividends 

Bird Construction Inc. designates any and all dividends paid or deemed for Canadian federal, provincial or territorial 
income tax purposes to be paid on or after January 1, 2007 to be “eligible dividends”, unless indicated otherwise in 
respect of dividends paid subsequent to this notification, and thereby notifies all recipients of such dividends of this 
designation. 

138

 
 
 
(cid:50)(cid:88)(cid:85)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:3)(cid:36)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:72)(cid:86)

Halifax
20 Duke Street,
Suite 201
Bedford, NS B4A 2Z5
T: 902.835.8205

St. John’s
90 O’Leary Avenue,
Suite 101
St. John’s, NL A1B 2C7
T: 709.726.9095

Saint John
120 Millenium Drive
Quispamsis, NB E2E 0C6
T: 506.849.2473

Wabush
2 Old Airport Road
Wabush, NL A0R 1B0
T: 709.282.5633

Montreal
1868 Boul. Des Sources,
Suite 200
Pointe-Claire, QC H9R 5R2
T: 514.426.1333

Ottawa
150 Isabella Street,
Suite 1200
Ottawa, ON K1S 1V7

(cid:13)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:50)(cid:3067)(cid:70)(cid:72)(cid:86)

Toronto *
5700 Explorer Drive,
Suite 400
Mississauga, ON L4W 0C6
T: 905.602.4122

Calgary *
600 - 4820 Richard Road SW 
Calgary, AB T3E 6L1
T: 403.685.7777

Cambridge
500 Jamieson Pkwy #4
Cambridge, ON N3C 4N3
T: 226.566.9652

Edmonton
17007 - 107 Avenue NW
Edmonton, AB T5S 1G3
T: 780.452.8770

Sudbury
670 Falconbridge Road,
Unit 1 
Sudbury, ON  P3A 4S4
T: 705.222.4848

Thunder Bay
946 Cobalt Crescent,
Unit 1
Thunder Bay, ON P7B 5W3
T: 807.768.9753

Red Deer
102 - 8024 Edgar Industrial 
Crescent
Red Deer, AB T4P 3R3 
T: 403.342.1666

Fort McMurray
Bay 45, 925 Memorial Drive
Fort McMurray, AB T9K 0K4
T: 780.790.3424

Winnipeg
1055 Erin Street
Winnipeg, MB R3G 2X1
T: 204.775.7141

Vancouver
300 - 13777 Commerce Pkwy
Richmond, BC V6V 2X3
Tel: 604.273.7765

Saskatoon
306 Ontario Avenue
Saskatoon, SK S7K 2H5
T: 306.565.3120

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Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Tel: (905) 602-4122
www.bird.ca

annual report 2020