Message from the President

Fiscal year 2007–08 was a busy and challenging one for Defence Construction Canada. However, I am pleased to report that it was a very successful year.

The Corporation continues to grow in response to increasing demand for services by its various client groups within the Canadian Forces (CF) and the Department of National Defence (DND). This speaks to the satisfaction and confidence these groups have in the performance of DCC and its employees. They now rely on the Corporation to do more in new and different areas. DCC’s profile has changed from an organization that simply delivers construction programs and projects, to one that also offers a variety of professional services related to project management, environmental sciences and realty asset management. I would like to make special mention of the Corporation’s increasing support to CF deployed operations and, in particular, to commend the women and men of our Kandahar office who support Task Force Afghanistan with contracting, contract management and general infrastructure management expertise. DCC will exercise its mandate wherever it is feasible to do so.

There are many supply-related challenges associated with meeting the demand of DND requirements. First, recruiting and retaining skilled staff in today’s buoyant economy requires concerted efforts. This year, for that reason, management conceived a new recruitment and retention strategy to ensure that we have the workforce needed today and in the future. Coupled with sound human resources management practices, a healthy work environment and continued focus on employee development and career progression, DCC is well positioned to meet the changing needs of the defence program.

Second, particularly in certain areas of the country, DCC has faced the challenge of attracting and maintaining the interest of contractors and consultants responding to defence design and construction projects. DCC cannot fulfill its mandate without private sector capability, and has continued to work on maintaining its reputation in the industry as a fair and responsive contractual partner. In addition to exercising sound contract management, DCC works closely with architectural, engineering and construction industry associations and their constituents to adopt best practices and standard contract documents.

Measures of success in managing both of these challenges include an increase of 8% in contract activity, of 12% in staff levels and of 16% in the total value of services provided to DND. The other corporate and operational performance indicators detailed in this report are all positive. Client satisfaction, which is perhaps the most telling of all measures, remains at an exceptional 97%.

The DCC management group has concentrated a great deal of time and energy on nurturing and controlling the growth of the Corporation. DCC has tripled in size and complexity over the last 10 years, and the slope of this trend line shows no sign of changing. It is within this dynamic environment that DCC has been developing a new approach to managing its service lines with the goal of maintaining – and improving – the quality and consistency of services provided to clients. The service line management concept is now at a stage where a new matrix framework of responsibilities and accountabilities for service management is ready to be implemented in 2008–09. Many core aspects of the traditional regional management concept that has served the Corporation so well for over half a century will be retained, and I am convinced that this fundamental structural change will enable the Corporation to continue enhancing its impressive reputation and track record as a high performance, cost effective provider of high quality services.

None of the accomplishments described in this report could have been achieved without the dedication of DCC employees and managers, or the collaboration of our client representatives and industry partners. As a team, we share the credit for the delivery of projects and programs that support the common mission of the CF and DND in the defence of Canada.

Ross Nicholls,
President & Chief Executive Officer