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8 2010 Annual Report The buzzwords for G Mechanical in 2010 were process procedure and infrastructure. While we remained busy with ongoing projects we focussed on key areas of infrastructure developing policies and putting procedures in place to ensure growth control and profitability. We were able to add an Operations Manager in the Spring that expedited much of our planned change. Randy Black brought a wealth of industry knowledge to the position not only helping us implement change but to understand what we do well. His addition led to the implementation of project management tools to help us effectively track the project process and he rounds out our executive team. Technology has always been paramount in our pursuit of improvement for G Mech. We are utilizing a labour tracking system and have developed reports which provide us with key labour information for all of our projects. Our project bid system Accubid is now being utilised by our full time estimator. We have been able to forensically audit inherited projects to develop budgets and provide insight into areas of our weaknesses and our strengths leading to the successful awarding of several new projects. On the project front our strength and focus remain the new installation of plumbing and HVAC in multi- residential developments. However we continue to grow and expand our commercial industrial base of experience through additional PIC Group projects and new client opportunities. In addition to 400 plus units of multi-residential development under contract we are currently working on the new Caron Transportation Terminal the ClearTech office development and have several entry-level commercial projects in the queue. This year more than ever we have focussed on business development and continue to bid projects with new developers and general contractors. Our strategies moving forward include to be continually driven to profitability to bring a greater revenue balance between the Sheet and Plumbing aspects of our business to develop a more value added service component for our existing clients and to have better access to quality financial information to help our management team make decisions. TJ Smith MECHANICAL T Genera tjsmithp 229 Avenu SaskatoonSK