Russell Hixson is an award-winning investigative journalist who spent the early parts of his career doing crime and courts reporting in the U.S. before stumbling into covering Canada’s construction sector. He spent eight years writing for the Journal of Commerce where he became well versed on the industry and its issues. He’s covered the federal budget from Ottawa and documented the early impacts of the COVID-19 pandemic while locked down in his bedroom.
Hixson has developed a passion for the construction industry and seeks to convert others by sharing its stories through SiteNews. When he’s not writing stories, the East Vancouver resident enjoys kayaking, skateboarding and avoiding the neighbourhood skunks.
*Editors Note: This is a developing story and content may be updated or changed as new information is released.
The world woke up Tuesday to news of one of the worst infrastructure disasters in recent memory. Information about the collapse of the Francis Scott Key Bridge in Baltimore, Maryland is changing rapidly but there is what we know so far.
What happened to the bridge
Dali, a container ship chartered by global shipping giant Maersk and flying under the flag of Singapore, appeared to lose power and drift into the Francis Scott Key Bridge early Tuesday morning. Shipping data shows the vessel is 300 metres long and was bound for Colombo, Sri Lanka. The incident is being investigated by the National Transportation Safety Board. Video shows the ship colliding with one of the bridge’s support columns, causing it to collapse. According to local reports, the ship issued a “mayday” shortly before the collision. Dali was also involved in a collision in 2016 in Antwerp, Belgium, according to online shipping records. Since it was built in 2015, the ship has undergone 27 inspections.
Casualty numbers remain unclear
The exact casualty numbers are not yet known but officials are calling it a mass casualty event. Officials say a team of eight people were repairing potholes on the bridge at the time of the incident. As of Tuesday morning, two had been rescued and six were still missing. Officials added that sonar has detected vehicles in the water. All of the personnel on the vessel are accounted for, with no reported injuries.
Video captured early Tuesday in Baltimore shows the moment the Francis Scott Key Bridge collapsed after it was hit by a container ship. pic.twitter.com/SWaFpD0QOr
Maryland Governor Wes Moore stated that his office is in close communication with U.S. Transportation Secretary Pete Buttigieg, Baltimore Mayor Brandon Scott, Baltimore County Executive Johnny Olszewski, and the Baltimore Fire Department as emergency personnel are on the scene following the collapse of the Francis Scott Key Bridge.
“I have declared a State of Emergency here in Maryland and we are working with an interagency team to quickly deploy federal resources from the Biden Administration,” said Moore. “We are thankful for the brave men and women who are carrying out efforts to rescue those involved and pray for everyone’s safety.”
President Joe Biden told reporters that he intends for the federal government to pay for the entire replacement of the bridge.
The Port of Baltimore announced that vessel traffic into and out of the Port of Baltimore is suspended until further notice.
“This does not mean the Port of Baltimore is closed,” officials said. “Trucks are being processed within our marine terminals. At this time we do not know how long vessel traffic will be suspended. As soon as that is determined we will provide an update. Until then please keep those involved in your prayers.”
“We’re not leaving until this job gets done.”
Pres. Biden speaks about the Baltimore bridge collapse.
Biden saying “It’s my intention that federal government will pay for the entire cost of reconstructing that bridge and I expect the Congress to support my effort.” pic.twitter.com/AwalIQJbVc
According to the latest Infrastructure Report Card that is issued every four years in the U.S. by the American Society of Civil Engineers, the state of Maryland’s bridges is improving as the number of poor bridges in the state continues to decline.
Approximately 5% of Maryland’s bridges were listed as “poor” condition, compared to the national average of 8.4%. However, Maryland bridge owners face growing challenges associated with an aging bridge stock. On average, Maryland bridges are 48 years old, which means they are approaching the end of their 50-year lifespan. The Francis Scott Key Bridge was 47 years old. Approximately 25% of bridges in Maryland are over 60 years old.
History of the Francis Scott Key Bridge
Construction of the steel arch-shaped continuous through truss bridge began in 1972 to alleviate traffic and maintenance concerns regarding the Baltimore Harbor Tunnel. It opened in March 1977 as the final link in I-695 Baltimore Beltway, spanning the Patapsco River at the harbor entrance. Named after Francis Scott Key, the author of “The Star-Spangled Banner,” the bridge was seen as a significant engineering feat, being one of the longest continuous truss bridges in the United States. It is part of Maryland Route 695 and carries an estimated 11.5 million vehicles annually.
Impact on the Port of Baltimore
The Port of Baltimore not only boasts one of the major cargo hubs in the U.S. but also hosts a cruise terminal servicing Carnival Cruise Lines and Royal Caribbean, offering year-round cruises. In fiscal year 2016, the cruise terminal saw off 440,000 passengers, ranking it second in the Mid-Atlantic and 11th in the U.S. for cruise passenger volume. However, the terminal’s capacity faces constraints due to limitations in accommodating multiple vessel calls per day and impending air draft restrictions at the Francis Scott Key Bridge (I-695).
According to the state’s Infrastructure Report Card, as both cargo and cruise ships continue to increase in size, the air draft restrictions at the Chesapeake Bay and Francis Scott Key Bridges will pose significant challenges. Engineers noted in 2020 that ships taller than 185 feet risk safety concerns passing under the bridges to and from the Port of Baltimore, with some of the largest vessels nearing an air draft of 230 feet.
A map shows the Port of Baltimore with the Francis Scott Key Bridge in red. – Creative Commons License
Infrastructure Ontario (IO) and Metrolinx have issued a Request for Qualifications (RFQ) for the Stations, Rail and Systems (SRS) contract for the Eglinton Crosstown West Extension (ECWE).
This package of work will be procured through a progressive design-build contract model. The scope of work includes:
Seven new stations;
installation, testing, and commissioning of all rail and track components and systems equipment;
roadway modifications and utility works; and
coordination with project companies on handover items from the advance tunnelling and elevated guideway contracts.
The RFQ is the first step in the procurement process to select a team to deliver the ECWE SRS package. IO and Metrolinx will evaluate submissions to prequalify teams with the relevant experience and financial capacity to deliver a project of this size and complexity. Interested companies must register with www.merx.com to download the RFQ.
The 9.2-kilometre Eglinton Crosstown West Extension is being delivered in four separate procurement contracts. The contracts include:
The first advance tunnelling contract, which covers the underground segment of the line between Renforth Drive and Scarlett Road;
The second advance tunnelling contract, which covers the underground segment of the line between Jane Street and Mount Dennis Station;
The contract for the elevated guideway (managed by Metrolinx), which covers the above-ground section of the route between Scarlett Road and Jane Street; and,
The Stations, Rail, and Systems contract.
Key Takeaways:
The company’s acquisition of Cervus Equipment in 2021 included material handling operations from Alberta through Manitoba.
The company now wants to expand its material handling business nationwide, creating a new and separate division.
It will focus on delivering premium forklift brands.
The Whole Story:
The Brandt Group of Companies has announced a major expansion to its material handling equipment dealer network in a move that is expected to generate $500 million in new revenue and up to 300 new jobs over the next three years.
The company’s acquisition of Cervus Equipment in 2021 included material handling operations from Alberta through Manitoba. Brandt has now announced its intentions to deepen and expand its commitment to the material handling industry in Canada. The company will expand its material handling business nationwide, creating a new and separate division.
“We believe that the material handling sector is primed for growth and in need of a nationwide alternative to the existing patchwork of small dealer groups,” said Shaun Semple, CEO of Brandt. “That is why we’re using the lessons we have learned from growing the agriculture, construction & forestry, and transportation pillars of our business to create a fourth pillar to serve the material handling industry.”
Brandt officials explained that Canada depends on its material handling operations across the country—from ports and transportation hubs to warehouses and distribution centres. Lift trucks and other material handling equipment and related infrastructure are essential to support the flow of goods to Canadians and support the country’s ongoing national growth.
Brandt officials added that they recognize that an opportunity exists to provide tailored solutions and to build deeper, stronger relationships with companies that operate lift trucks across the country. Brandt is uniquely suited to leverage their customer-focused brand promise to ensure customers have access to the equipment, specialists, parts, and service required to run thriving businesses.
As part of this expansion, Brandt says it plans to grow its network of material handling focused stores into new territories focused on delivering premium forklift brands backed by a dedicated rental fleet, parts network and dedicated service network focused on repair work and preventative maintenance.
A map shows Brandt locations worldwide. – Brandt
Key Takeaways:
PCL says the agreement will allow it to train and empower its project teams to de-risk its projects around contract compliance.
Officials state that after exploring at least five various solutions, Document Crunch demonstrated the ability to leverage PCL’s current internal processes and improve and automate them.
Document Crunch was founded in 2019 by Josh Levy, Adam Handfinger and Adam Nadler—two lawyers and a serial businessman.
The Whole Story:
Document Crunch, an AI contract intelligence platform, and PCL Construction, Canada’s largest contractor, have announced a major partnership.
PCL will use Document Crunch’s AI platform to train and empower its project teams to de-risk its projects around contract compliance.
PCL stated that since launching in 2019, Document Crunch has quickly become the industry leader in construction contract risk review and mitigation through its proprietary AI solutions that simplify contracts, standardize contract review by identifying critical risks, and transfer contract knowledge from the back office to the field, allowing for better contract compliance by project teams.
“Our bigger vision has always been around project teams being better enabled at contract compliance,” said Josh Levy, co-founder and CEO of Document Crunch. “We made a significant investment into building an enterprise-grade product ready to be adopted by project teams across the board. This includes meeting the highest data security and privacy standards, having just completed our SOC 2 Type II compliance audit. PCL was an early adopter and an excellent partner who helped us get over the threshold from good early solution to enterprise ready. This partnership is a strong signal that our vision is real, and that our product is ready to be operationalized every day across projects within construction operations.”
Document Crunch was founded in 2019 by Josh Levy, Adam Handfinger and Adam Nadler—two lawyers and a serial businessman.
PCL explained that they recognized the need to ensure consistency in managing contracts throughout the project lifecycle, as well as the need to create a standardized workflow for the complete transfer of ownership and direction from one responsible party to another at every stage of a project.
“After exploring at least five various solutions, Document Crunch gave us the ability to leverage our current internal processes and improve and automate them,” said Mark Bryant, chief information officer at PCL. “Consistent behavior and approach produce consistent results. This means our customers can be assured we manage project expectations with the same lens regardless of the team.”
According to PCL, the partnership validates Document Crunch’s impact and mission to empower everyone in construction—from the back office to project teams—to understand what’s in their contracts. The contractor added that It also sets new standards for risk review, contract compliance and project management workflows, ultimately leading to a less risky and more profitable industry. .
“The only thing for certain is that change will occur,” said Bryant. “We prefer to be shaping it to the best of our abilities, not trying to catch up.”
Saskatchewan’s latest budget is proposing $4.4 billion to go towards capital projects.
Much of the spending will focus on schools, roads and hospitals.
It is part of nearly $18 billion more over the next four years that will be spent on major capital projects.
The Whole Story:
Saskatchewan plans to invest an all-time high $4.4 billion in capital projects to support schools, healthcare, roads, power facilities and more.
This includes nearly $1.9 billion in capital projects across executive government and approximately $2.6 billion in capital projects by the province’s commercial Crown corporations.
“Saskatchewan’s economy and population are growing rapidly and with that growth comes a need for new, expanded and renewed infrastructure,” Deputy Premier and Finance Minister Donna Harpauer said. “This year’s investment of $4.4 billion, part of nearly $18 billion more over the next four years, ensures we will continue to build the classrooms, health facilities and other infrastructure to support our province’s growth for years to come.”
The 2024-25 Budget includes the largest investment ever in health capital of more than $516.8 million, an increase of nearly $180.0 million compared to the previous year. This will support a number of ongoing major projects, including:
$180.0 million for construction of the Prince Albert Victoria Hospital redevelopment project;
$55.0 million for construction of the Weyburn General Hospital replacement project;
$27.0 million for construction of the La Ronge long-term care (LTC) project;
$21.9 million to complete construction of the Regina General Hospital parkade project;
$20.0 million to support procurement and design activities on the Regina LTC specialized beds project;
$10.0 million for construction of the Grenfell LTC project;
$4.0 million for procurement of Regina LTC standard beds;
$3.0 million to continue work on the Saskatoon Urgent Care Centre;
$2.8 million for the St. Paul’s Front Entrance Expansion project;
$2.5 million to advance the Estevan LTC redevelopment project;
$1.5 million to advance the Watson LTC project;
$1.0 million for planning for the Yorkton Regional Health Centre replacement project; and
$750,000 to advance planning on various projects, including St. Anthony’s Hospital in Esterhazy, Rosthern Hospital and the Battlefords District Care Centre.
The budget invests $216 million in school infrastructure, including:
$165.9 million to support ongoing projects, including 11 new or consolidated school projects and three major renovations in Lanigan, Carlyle, La Loche, Saskatoon, Moose Jaw, Regina, Prince Albert, Balgonie and Wilcox
$28.5 million for the Relocatable Classroom Program to support enrolment growth.
$8.8 million in funding to begin planning for nine new schools and two renovations.
$12.8 million for minor capital renewal projects that allow school divisions to address structural repairs and renovations to prolong the life of schools across the province.
“This year’s Capital Budget supports classrooms, care and communities through health and education projects in dozens of communities across Saskatchewan,” SaskBuilds and Procurement Minister Joe Hargrave said. “Thanks to this year’s investment in infrastructure, we are not only on track to exceed our Growth Plan goal of investing $30 billion by 2030, but we have also now invested approximately $47.2 billion since 2008-09 to serve the growing infrastructure needs of families and communities.”
Budget 2024-25 invests $59.0 million in Saskatchewan’s post-secondary infrastructure, including:
$24.6 million for maintenance and upgrades to help meet the needs of students and staff;
$8.7 million for an electrical infrastructure upgrade at the University of Saskatchewan;
$7.8 million to support new domestic health care training programs (Occupational Therapy, Speech Language Pathology and Physician Assistant programs);
$6.3 million for cooling tower replacement at the University of Regina;
$6.0 million for planning work for Saskatchewan Polytechnic’s new Saskatoon campus;
$3.5 million for further expansion in health care training programs; and
$610,000 to expand the student health care centre at the University of Regina.
The 2024-25 Budget invests $417.3 million in transportation infrastructure, providing $403.9 million to improve more than 1,100 kilometres of Saskatchewan’s provincial highway network, including continued construction and design of passing lanes and twinning projects to increase safety and improve traffic flow, as well as repairing or rebuilding 17 bridges and replacing roughly 100 culverts around the province.
This budget provides $350.1 million in transfers to municipalities for infrastructure projects through several programs, including the Investing in Canada Infrastructure Program, Canada Community-Building Fund and the New Building Canada Fund.
Budget 2024-25 invests $301.9 million in government services infrastructure, including:
$78.9 million in various water-related infrastructure projects;
$60.8 million for courts and correctional facilities and equipment, including continued construction of the remand expansion at the Saskatoon Correctional Centre;
$21.7 million for the development of supportive housing spaces in Regina and Saskatoon, and to repair, maintain and replace provincially owned housing units; and
$13.3 million for capital projects throughout the parks system to improve visitor experience, including construction of a new service centre at Nut Point Campground in Lac La Ronge Provincial Park. Improvements and upgrades will also take place at Pike Lake, Narrow Hills, Moose Mountain, Rowan’s Ravine and Crooked Lake provincial parks, as well as Cypress Hills Interprovincial Park.
Saskatchewan’s Crown corporations will spend approximately $2.6 billion on capital projects this year to support economic growth and maintain and improve utility infrastructure. This includes:
Approximately $1.6 billion investment in SaskPower’s electricity system;
$416.9 million through SaskEnergy for the province’s natural gas transmission and distribution system; and
$570.8 million through SaskTel, SGI Canada Auto Fund, SaskWater, SaskGaming and Crown Investments Corporation.
This month’s SiteViews features many smiling faces, a big catch, grand openings and more. If you want your photos to be featured, let us know by reaching out to hello@readsitenews.com
A Few Good Lads
A Few Good Lads celebrates its team’s diversity on the job site.
Year two of the Tahltan Heavy Equipment Operator Program is in full swing, with the new Level 1 participants wrapping up their first week at the Newmont Red Chris Mine in B.C.
Axiom Builders
Axiom Builders’ crews are hard at work at The Amazing Brentwood, Neighbourhood Two. Now that excavation and shoring is complete, totalling over 182,000 cubic meters of soil, the team is focusing on constructing the underground concrete structure and working their way up towards their next milestone, reaching the ground level.
Ventana Construction
Ventana‘s crews stay positive on a job site in B.C.
Sierra Construction
The Sierra General Contracting team has been busy work on plant expansion in Woodstock, Ont. Working with Tresman Steel Industries Ltd., they have begun the commencement of steel erection with the ongoing installation of open web steel joists.
Metrolinx
This is the view crews get from the other side of the yellow retention towers at Queen-Spadina while doing work on the Ontario Line. Behind the walls, demolition is 90% complete.
Ledcor
Ledcor’s Edmonton construction team hosted their second annual ice fishing event in celebration of International Women’s Day. The event brought together over 30 women from Ledcor, client partners, volunteers, Alberta Conservation, and Alberta Fish and Wildlife to cheer on and support one another.
Calgary Municipal Land Corporation
Crews celebrate the substantial completion of the BMO Centre Expansion project in Calgary.
S & J Construction‘s team executes a pile cap pour in sunny downtown Winnipeg.
Cooper Equipment Rentals Limited, a Canadian-owned and operated construction equipment rental company, has purchased 100% of the shares of Alberta-based Action Equipment Rentals Inc.
Action was formed in 1991 by Reginald Bloomfield and his father Ray Bloomfield in Sundre, Alta. to serve the central Alberta market. The company opened a second location in Red Deer about a year later. In 2015, Action consolidated operations in Red Deer, and under the leadership of general manager, Gabriel Castella-Chin, embarked on an ambitious plan to renew their rental fleet and grow their market share.
“Joining a Canadian-owned company with an excellent reputation was important in our decision to join the Cooper family. We are looking forward to continuing to serve Central Alberta with the benefits and resources that allow us to expand our presence and continually improve our already excellent service,” said Castella-Chin.
Cooper officials explained that Action’s prime location and facility in Red Deer intensifies their coverage in the important Alberta market, and Action’s strong presence in Alberta enhances Cooper’s ability to serve customers better in Western Canada.
“I was once told that ‘if you build it, they will come’. That was our charge for Action Rentals from the start, and this is the next natural step going forward. Cooper will take what we built and continue to build so they will come. And if we treat them right, they will stay,” said Reginald Bloomfield, founder, Action.
Action joins the Cooper family as the Red Deer branch and will continue to be led by Gabriel Castella-Chin, supported by Action employees.
“Action has built a fine business with a reputation for quality and integrity in the construction equipment industry, and we are proud to welcome them into the Cooper family as we continue to grow our Company across Canada,” said Doug Dougherty, CEO, Cooper.
Key Takeaways:
A total of 17 new projects in Metro Vancouver have been selected through the third intake of the Building BC: Community Housing Fund (CHF).
The proposed projects will provide a total of 1,954 affordable rental homes.
Additional projects on Vancouver Island, in the Interior and North will be announced later this week
The Whole Story:
Nearly 2,000 new affordable homes are on the way for renters in Metro Vancouver, through partnerships between the Province and local non-profit housing providers.
A total of 17 new projects in Metro Vancouver have been selected through the third intake of the Building BC: Community Housing Fund (CHF). The proposed projects will provide a total of 1,954 affordable rental homes for individuals, families, seniors, people living with disabilities and Indigenous people in B.C.
“Everyone deserves a decent home they can actually afford,” said Premier David Eby. “That’s why we’re taking unprecedented actions to rapidly build more affordable housing throughout the province, including through the Community Housing Fund. This latest round of funding will bring much-needed homes to every region of our province – from our fastest-growing cities to rural and remote areas – helping everyone find a decent home in the community they love.”
The announcement took place at 7567-140 St. in Surrey, the future site of an affordable housing project that will be operated by Kekinow Native Housing Society. Expected to be completed in late spring 2024, the project previously received CHF funding for Phase 2 of the development to build more than 100 homes for Indigenous people. The society will be receiving CHF funding for another project as one of the successful proponents from the CHF call for proposals issued in fall 2023.
“Through our Homes for People action plan, we are taking action to deliver affordable housing faster, and the Community Housing Fund is a key part of the plan,” said Ravi Kahlon, minister of housing. “These new homes mean that more people in B.C. will benefit from affordable homes in the communities they love, where they can grow their families and age in place.”
Including these projects, the province, through BC Housing, has identified more than 40 new projects to move forward, totalling approximately 3,500 affordable rental homes. Additional projects on Vancouver Island, in the Interior and North will be announced later this week. This brings the total to 12,500 affordable rental homes that are already open or underway through the CHF program since its launch in 2018.
The Community Housing Fund is part of a $19-billion housing investment by the B.C. government. Since 2017, the Province has nearly 78,000 homes that have been delivered or are underway.
Key Takeaways:
There are three major construction phases of the redevelopment, which will be run as two separate projects.
In addition to schematic design drawings, residents were able to view a video simulating a flyover of the new patient tower and power plant.
The next step is design development, which entails creating the entire construction plan, including building finishes as well as plumbing and electrical components.
The Whole Story:
Alberta’s government has offered a sneak peek at what’s planned for the massive Red Deer Regional Hospital Centre redevelopment.
In addition to schematic design drawings, residents were able to view a video simulating a flyover of the new patient tower and power plant. Project representatives were also on hand to speak about the project. The session was attended by about 150 residents, media and officials including Ken Johnston, mayor of Red Deer.
Alberta’s government made the first significant commitment and progress on the hospital by allocating $100 million in Budget 2020, followed by another $1.8-billion commitment in Budget 2022.
“We were excited to share schematic designs for the Red Deer Hospital redevelopment yesterday,” said Pete Guthrie, minister of infrastructure. “The number of people who attended the session validates the importance of this project to the central region. We are proud of the role Infrastructure is playing in delivering one of the most ambitious hospital redevelopment projects in Alberta’s history.”
Design work began in June 2023. With schematic design now complete, the hospital redevelopment is on schedule and on budget. The next stage of the project, design development, is now underway. Once complete, the new expansion will add up to 200 beds to the existing facility, bringing the total number of beds to up to 570.
“As the MLA for Red Deer-North and the Health Minister, I’m very proud of the progress we’ve achieved, and I remain dedicated to advocating for this project,” said Adriana LaGrange, minister of health. “Albertans should be able to access health care when and where they need it. This project will improve health outcomes for Albertans living in Red Deer and across central Alberta by increasing the facility’s capacity and providing much-needed services and resources, including new cardiac catheterization labs, close to home.”
View of Central Alberta Cancer Centre (CACC) New Drop-off from 52nd Avenue
View of Power Plant Addition
View of New Patient Tower Entry from 39th Street
There are three major construction phases of the redevelopment, which will be run as two separate projects:
Project 1: construction of a new inpatient tower, and an expansion and renovation of the existing hospital’s main building.
Project 2: construction of an ambulatory care building using a public-private partnership (P3) delivery model.
The project will upgrade several services throughout the hospital site including:
an additional inpatient tower
six new operating rooms
new Medical Device Reprocessing department
new cardiac catheterization labs
renovations to various areas within the main building
newly renovated and expanded emergency department, and
a new ambulatory clinic building to be located adjacent to the surface parkade.
Key Takeaways:
Mercer Mass Timber is launching its own construction services division that will integrate engineering, manufacturing, and construction teams under one roof.
The new division will offer a wide range of services, including full mass timber structure erection, logistics planning, lift/bracing engineering, site supervision/consultation and more.
Officials stated that the expansion will allow developers and owners to unlock the full potential of mass timber.
The Whole Story:
Mercer Mass Timber is expanding beyond materials production with the launch of its own construction service division.
The Vancouver-based manufacturer of timber building materials announced Mercer Mass Timber Construction Services will offer both comprehensive on-site installation for fully integrated construction and project consultancy for clients seeking expert guidance and strategic support.
Mercer stated that this expansion marks a significant step forward for Mercer Mass Timber, enabling customers to achieve greater project efficiency and faster completion times.
By offering comprehensive planning, scheduling, on-site installation, and quality control from one vendor, we’re empowering developers and owners to unlock the full potential of mass timber.
Brian Merwin, senior vice president at Mercer Mass Timber
Mercer officials explained that historically, the construction industry has faced challenges with fragmented processes and siloed communication between a wide range of stakeholders. These operational silos are further impacted by lagging technological advancement and digitization, an aging workforce, and a lack of skilled workers, which widens issues like poor information sharing, uncoordinated efforts, and ultimately, project inefficiencies and failures.
Mercer Mass Timber believes its new division bridges this gap by integrating engineering, manufacturing, and construction teams under one roof for unparalleled control over the entire construction process. This holistic approach fosters collaboration, ensuring safe, rapid, and risk-managed installation for mass timber projects.
Mercer Mass Timber’s Construction Services plans to take a vertically integrated approach, minimizing project complexities by taking control at every stage. This means meticulously detailed production plans, combined with in-house engineering expertise and precise logistics work together to deliver faster completion times and reduced costs.
The company explained that controlling the entire process allows its team to optimize communication and resource allocation, leading to less waste, minimized risks, and streamlined construction schedules.
“In order to be competitive in today’s market, our customers need the assurance that their projects will be completed on-time, on-budget, and with exceptional aesthetics and quality,” said Brian Merwin, senior vice president at Mercer Mass Timber. “Now, with the launch of Construction Services, we’re extending our mass timber production capabilities to support the entire project lifecycle with a value engineering led approach. By offering comprehensive planning, scheduling, on-site installation, and quality control from one vendor, we’re empowering developers and owners to unlock the full potential of mass timber. At Mercer Mass Timber, we’re not just building structures; we’re revolutionizing the way construction works.”
Construction Services key offerings include:
Full mass timber structure erection: Utilizing proprietary mass timber-specific tools, Mercer Mass Timber handles the complete timber installation process, including layout, crane management, mass timber rigging, temporary structure bracing, and hardware installation.
Logistics planning & installation sequencing: Meticulous planning ensures efficient material delivery and on-site management.
Lift/bracing engineering: In-house engineering expertise ensures safe and efficient lifting and bracing solutions.
Site supervision/consultation: Dedicated superintendents and construction managers provide on-site oversight and support throughout the installation process.
Construction scheduling: Advanced scheduling tools optimize resource allocation and minimize delays.
Modelling & technology: Project models that simulate construction activities and BIM technology ensure seamless communication and coordination.
Project management: Detailed plans and close collaboration with clients, subcontractors, and suppliers ensure smooth project execution.
Labor management: Vertical integration with engineering and manufacturing teams optimizes workflow and resource allocation.
Quality control: Unwavering commitment to quality ensures projects meet the highest standards.
Water mitigation implementation: Working knowledge and expertise of mass timber water mitigation strategies to best meet client goals.
British Columbia and Alberta have some things in common. Both are unusually dependent on natural resource-based industries to drive their economies and supply the exports that are vital to sustaining prosperity. Both have been experiencing robust population growth over the last few years. And neither has been well-served by a distant national government in Ottawa with a policy thrust focused more on keeping natural resources in the ground than on harnessing them in an environmentally sustainable way for the benefit of all Canadians.
Recently, B.C. Premier David Eby and Alberta Premier Danielle Smith released their budgets for the coming year, and it is here where it becomes clear that other than sharing a border and natural resource advantages, not much else binds the two provinces together. Perhaps the greatest schism is the difference in the two premiers’ economic vision.
To begin with, Alberta’s updated fiscal plan aims to stay in the black, with small operating surpluses expected over the forecast horizon. B.C. is taking a different path, one featuring unprecedented annual deficits as the NDP government ramps up spending in advance of the fall 2024 election and gives free rein to its ideological inclinations to expand the size and reach of government. The Fraser Institute recently reported that in the three years from the onset of the COVID-19 pandemic in 2020 to Q2 of last year, 94% of net new payroll jobs created in B.C. were in the public sector. This lopsided labour market is one sign of B.C.’s deteriorating business climate.
Returning to the fiscal outlook, B.C. is planning to incur a combined operating deficit of $28 billion from 2023/24 through 2026/27, which is a marked departure from the surpluses posted over most of the preceding dozen years. For its part, Alberta is banking on continued budget surpluses, albeit significantly smaller than the $5.2 billion in black ink projected for the current fiscal year (2023/24).
It is worth noting that Alberta’s surpluses are set to shrink beyond 2023/24 in part because of assumed softer global oil markets – the province garners up to one-quarter of its revenues from energy royalties. Should oil prices trade higher than the government’s forecast, the small surpluses pencilled into Budget 2024 would increase significantly, further strengthening Alberta’s financial position over the medium-term.
Turning to government spending, while both provinces are facing pressure in areas like heath care and housing costs, owing in part to surging populations, the idea of spending restraint is clearly less popular in Victoria than Edmonton. The B.C. NDP government intends to boost expenditures by 8% in 2024/25. In Alberta, expenditure growth next year will come in at roughly half of that figure.
The two provinces have both embraced ambitious capital spending plans, which involve long-term borrowing outside of the confines of the annual operating budget. Total B.C. public sector capital spending will climb to $18-19 billion per year over 2024/25-2026/27. Alberta’s revised capital plan foresees $25 billion being spent on infrastructure and other public sector capital assets in the next three years. Public sector capital outlays in B.C. include borrowing undertaken by large Crown corporations like B.C. Hydro and ICBC – which don’t exist in Alberta.
Alberta also has structural advantages over B.C. and the rest of the country in the form of lower tax rates and lower debt levels. Alberta has no provincial sales tax and a lower business income tax rate (8% vs 12% in B.C.). And Alberta’s public sector debt is roughly 9.3% of GDP and on track to decrease in the coming years, whereas B.C.’s is currently 17.6% of GDP and expected to climb to 27.5% by 2026/27.
Overall, the two budgets suggest Alberta is very well-positioned to continue to lead the country in economic growth, business investment, and wage increases in the next few years. Albertans already enjoy an average GDP per person almost $28,000 higher than the comparable figure in B.C. Alberta should continue to reap the advantages of lower taxes and healthier provincial finances.
The extraordinary growth in government in B.C., combined with its large operating deficits and fast-rising debt/GDP ratio, mean that taxpayers should brace themselves for the inevitability of significant tax hikes and lagging investment and lower incomes in the future.
The Independent Contractors and Businesses Association (ICBA), the largest construction association in Canada, represents more than 4,000 members and clients through chapters in Alberta and British Columbia. ICBA is one of the leading independent providers of group health and retirement benefits in western Canada, supporting more than 170,000 Canadians. ICBA is also the leading sponsor of trades apprentices in B.C. www.icba.ca and www.icbaalberta.ca
Key Takeaways:
TC Energy is selling its shares in the Prince Rupert Gas Transmission Project to Nisga’a Nation and Western LNG.
The proposed project is a 900 kilometre natural gas pipeline running from Hudson’s Hope to Lelu Island, near Prince Rupert.
The Nation and Western believe that as other B.C. pipeline contracts come to a close, experienced contractors will become available to work on the project.
The Whole Story:
TC Energy Corporation announced it has entered into a binding letter agreement with Nisga’a Nation and Western LNG regarding the purchase and sale of all outstanding shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership (PRGT).
PRGT is a wholly owned subsidiary of TC Energy and the developer of a natural gas pipeline project in B.C. The proposed project is a 900 kilometre natural gas pipeline running from Hudson’s Hope to Lelu Island, near Prince Rupert. The pipeline route would include both terrestrial and marine sections and would have a proposed capacity of 2-3.6 billion cubic feet per day (Bcf/day).
“Today is a historic day for the Nisga’a Nation and represents a sea change in major industrial development in this country,” said Eva Clayton, president of the Nisga’a Lisims Government. “In taking an equal ownership role in this pipeline, we are signalling a new era for Indigenous participation in the Canadian economy. First Nations are no longer being left behind as generational wealth is built from the resources of our lands. At long last, hop and optimism are returning to Indigenous communities across northern B.C.”
TC Energy stated that the transaction demonstrates its resolve toward delivering its 2024 strategic priorities while facilitating the development of critical energy infrastructure. TC Energy’s strategic priorities are focused on staying within its $6 to $7 billion annual net capital expenditure limit, post-2024, maximizing the value of its assets and further enhancing the strength and flexibility of its balance sheet.
“We are pleased to see this important project move forward while remaining firm on our commitment to our strategic priorities. This is an important agreement that will see Indigenous co-ownership and development of an integrated LNG project. Enabling LNG development in British Columbia is good for Indigenous communities, our customers, supports the long-term growth of the WCSB and global emissions reduction through the export of responsibly produced Canadian natural gas,” said François Poirier, president and CEO, TC Energy.
As part of the letter agreement, TC Energy has committed to provide transition services, on a reimbursable basis, to facilitate the seamless transition of the pipeline project and support development work planned for this year. Subject to the execution of definitive agreements and customary closing conditions, the transaction is expected to close in the second quarter of 2024. Initial proceeds from the transaction are not expected to be material to TC Energy, with the potential to receive additional payments contingent upon the project achieving final investment decision and commercial operation.
The Nisga’a Nation and Western LNG stated that they plan to enter into an agreement with an internationally respected construction manager to build the pipeline. The Nation and Western believe that as other B.C. pipeline contracts come to a close, experienced contractors will become available to work on the project.
The Canadian Construction Association (CCA) is once again celebrating the industry’s best and brightest. The association has announced the winners of its National Awards.
The official ceremony was held on March 14, 2024 in conjunction with the annual CCA Conference in Punta Cana, Dominican Republic. From innovation and environmental achievement to community leadership, world-class safety and workforce excellence, the recipients represent the industry’s best and brightest.
CCA 2023 Community Leader Award – sponsored by Marsh Canada Limited
Ledcor has been named one of two recipients of CCA’s Community Leader Award. The collective mission shared by Ledcor’s employees is encapsulated in the phrase “Ledcor Cares,” a testament to their commitment to community well-being and making a positive impact.
CCA 2023 Community Leader Award – sponsored by Marsh Canada Limited
Emerging as a central force addressing substance use and overdose deaths with a groundbreaking toolkit, VICA has been named one of two recipients of CCA’s Community Leader Award.
CCA 2023 Environmental Achievement Award – sponsored by Victaulic
Giatec was recognized for their innovative approach to sustainability. SmartMix is an AI platform that empowers ready-mix concrete producers to analyze data points across their operations efficiently, optimizing mixes for cost, cement usage, and CO2 emissions.
CCA 2023 Excellence in Innovation Award – sponsored by Intact Surety
For their Canadian adaption of new methodology for steep slope pipeline installation, Ledcor Pipeline Ltd. was honoured with the 2023 Excellence in Innovation Award.
This recognition speaks volumes about the typical dedication and ingenuity of the outstanding Ledcor team members. Our approach to innovation not only sets new standards but also demonstrates our commitment to pushing boundaries and driving positive change in our industry.
Quentin Huillery, Chief Operations Officer, Civil, Mining, and Infrastructure
CCA 2023 Gold Seal Award – sponsored by Travelers Canada
For their ongoing commitment to excellence and education, Kinetic was recognized with the CCA 2023 Gold Seal Award. A staunch supporter of Gold Seal since its inception, Kinetic has celebrated countless employees’ journeys to certification.
CCA 2023 National Safety Award – sponsored by Vipond Inc.
The 2023 CCA National Safety Award recognized the Graham Group for their outstanding overall approach to and success in the areas of health and safety. Actively Caring is one such example of a Graham program designed to cultivate a culture where people are actively looking out for others with courage and compassion.
We’re thrilled to receive the CCA National Safety Award this year! Safety is our top priority. Our actively caring culture underpins every project to ensure the health and safety of our people, communities and the environment.
Construction Association of Nova Scotia (CANS) is the 2023 recipient of CCA’s Partner Association Award. CANS continues to focus on building a resilient, skilled and innovative future for the construction industry in Nova Scotia through education, advocacy and industry collaboration.
CANS members have been pivotal in shaping the work we do and services we offer. Winning this award presents an extraordinary opportunity to nationally showcase the accomplishments and impactful work we’ve undertaken on behalf of our hard-working members and our industry.
CCA 2023 Pinnacle Leader Award – sponsored by PCL Construction
The CCA 2023 Pinnacle Leader Award recognized Dave Filipchuk. His achievements are reflected not only in his firm’s success and growth, but also in his leadership, dedication to excellence, and community contributions, which position him as an exceptional leader, partner and example to all.
I reflect on my 40-years with PCL with immense gratitude for the opportunities that have come my way. The journey has been incredibly diverse, with experience in Canada, the U.S. and Australia, and across our operations in the Buildings, Civil, Infrastructure, and Heavy Industrial sectors. Every step has been a learning experience for me. I accept this recognition humbly, knowing the credit is shared with an incredibly talented leadership team that I’m part of, and that our 5,000 plus contingent of dedicated construction professionals have made this possible.
CCA 2023 Workforce Excellence Award – sponsored by RAISE
Underwriting for their ongoing efforts to continuously improve upon their employees’ experiences, and their commitment to a diverse and equitable workplace, Ledcor was presented with the CCA 2023 Workforce Excellence Award. Ledcor uses the phrase “True Blue” to describe its values-driven approach.
CCA 2023 Young Leader Award – sponsored by McMillan LLP
Through his impressive portfolio, his dedication to continuing education and his community spirit, Ryan Davis stands as an exemplary leader in his field and was recognized with the CCA 2023 Young Leader Award. Davis is a senior project manager at Marco Group.
The BMO Centre expansion project has reached substantial completion after four years of work.
This required over two million construction hours and contributions from nearly 5,000 tradespeople, including demolition crews, steelworkers, drywall installers, and electrical and mechanical teams.
The expanded BMO Centre will host its first event – the Global Energy Show – in June 2024.
The Whole Story:
After four years of construction, Calgary Municipal Land Corporation (CMLC) and the Calgary Stampede have announced the substantial completion of the $500-million BMO Centre expansion, moving the project into its final stages of operational readiness ahead of its grand opening in June.
“As development manager for this transformative project, Calgary Municipal Land Corporation is proud to have delivered the BMO Centre expansion on schedule and on budget,” said Kate Thompson, CMLC’s president and CEO. “This is a major accomplishment for CMLC and our partners, and a huge step toward achieving our vision for a vibrant and active Culture + Entertainment District. The expanded BMO Centre is second to none in its design architecture and functionality, and sets a new precedent for convention facilities. We are thrilled to hand over the keys to the newly expanded BMO Centre to the Calgary Stampede team as they prepare to operationalize the building in advance of its grand opening this June.”
Thompson added that achieving the milestone would not have been possible without the generous support of all levels of government or without the dedication and expertise of its construction manager, PCL Construction, and project manager, M3 Project Management.
“Our gratitude also extends to our world-class design team of Stantec, Populous and S2 for their visionary design of this architectural landmark, and to our partners at the Calgary Stampede,” said Thompson. “Our shared success today is due to all our consultants’ and contractors’ unwavering commitment and pride of work over the past four years.”
With over two million construction hours and contributions from nearly 5,000 tradespeople, including demolition crews, steelworkers, drywall installers, and electrical and mechanical teams, officials say the BMO Centre expansion stands as a testament to collaborative effort and commitment to excellence. At more than 565,000 square feet of new space, 10,000 metric tonnes of steel, and 2.4 million square feet of drywall, the expanded BMO Centre is now Western Canada’s largest convention centre.
A rendering shows the design of the BMO Centre expansion in Calgary. – Calgary Municipal Land Corporation
“The BMO Centre expansion project has been years in the making for the Calgary Stampede, from first questioning ‘Should we expand?’ to considering ‘What would an expansion look like?’ to then involving our development partners in making it happen. To reach this substantial completion milestone is monumental, as our team will now work to operationalize the building in preparation of welcoming the world to the BMO Centre at Stampede Park in just under 90 days,” said Joel Cowley, Calgary Stampede CEO. “The impact that the expanded BMO Centre will have on the Calgary Stampede and on Calgary’s tourism, convention and hospitality sector cannot be overstated. We have already seen great interest in the expanded BMO Centre and now have more than 100 incremental events booked through 2030.”
In preparation for its operation as a 1-million-plus-square-foot facility, the Calgary Stampede team will soon begin loading in furniture, dishes, cutlery, and catering equipment to the tune of 6,500 stacking chairs, 600 round banquet tables, 500 rectangular tables, 7,680 table forks and knives, and 6,200 dinner plates.
With the opening of the BMO Centre expansion, Calgary will now have a Tier 1 Convention centre, which allows the city to compete for larger meetings and convention business.
The $500-million expansion – funded in equal parts by the Government of Canada, the Government of Alberta, and The City of Calgary – will more than double the centre’s capacity for conferences, meetings and events. Across the expansion and existing facilities, the BMO Centre will be able to host up to 33,000 guests at once.
The expanded BMO Centre will host its first event – the Global Energy Show – in June 2024.
A rendering shows the design of the BMO Centre expansion in Calgary. – Calgary Municipal Land Corporation
Key Takeaways:
Crews are expected to break ground this spring.
Ledcor was chosen from a group of four submissions.
The Government of Alberta is providing $125 million for the project as announced as part of the 2023 Capital Budget.
The Whole Story:
Ledcor has chosen to build MacEwan University’s new School of Business building.
The facility will be a seven-storey, 376,700-square foot building at 109 Street and 105 Avenue. It will contain 30 classrooms, a simulated trading floor, 20 collaboration spaces and 15 study spaces. When completed, the building will accommodate an additional 7,500 students.
“Ledcor’s proposal was chosen from a group of four outstanding submissions – we acknowledge and appreciate the hard work and creativity in all the proposals,” said school officials.
Construction on the building at the vacant lot site will begin this spring.
The Government of Alberta is providing $125 million for the project as announced as part of the 2023 Capital Budget. Total estimated cost is $190 million.
“Like MacEwan, Ledcor is an organization firmly rooted in community, built on a foundation of collaboration and innovation,” said school officials. “We are looking forward to working together on the construction of the building, which will provide learning spaces for 7,500 new students when it opens its doors in 2027.”
Targeting LEED Gold, the building will incorporate a high-efficiency mechanical and electrical system, solar photovoltaic panels to convert thermal energy into electricity, and a high-performing exterior that includes vertical solar shading fins for temperature regulation.
The facility will also feature a ground floor café, a multi-level central atrium providing a variety of collaborating and gathering areas for learning, and upper floors with classrooms to support an exceptional teaching environment, offices, and spaces primed for future growth.
Key Takeaways:
LaPrairie Works has acquired Carwald Redi-Mix’s concrete and aggregate operations in Slave Lake and Wabasca, Alta.
As part of the acquisition, LaPrairie Works has taken on Carwald’s employee team, including equipment operators, crushing crew operators, drivers, and management personnel.
Carwald’s ready-mix concrete, asphalt concrete pavement (ACP), and aggregate products will now be available to customers through a new division of LaPrairie Works Inc.
The Whole Story:
LaPrairie Works Inc., a highway and bridge maintenance and civil construction contractor, has announced its acquisition of Carwald Redi-Mix’s concrete and aggregate operations in Slave Lake and Wabasca, Alta.
Carwald’s ready-mix concrete, asphalt concrete pavement (ACP), and aggregate products will now be available to customers through a new division of LaPrairie Works Inc.
“We are very pleased to have Carwald, one of Alberta’s premier concrete and aggregate suppliers, join the LaPrairie Works team,” said Kelly McManus, president of transportation & highway operations of LaPrairie Works Inc. “In the highway maintenance and civil construction industries, concrete, ACP, and aggregate products are frequently used. With this acquisition, we will now be able to source these products for our own operations in-house, while continuing to supply loyal Carwald customers with the quality products and excellent customer service they are accustomed to.”
As part of the acquisition, LaPrairie Works has taken on Carwald’s employee team, including equipment operators, crushing crew operators, drivers, and management personnel.
Ken Porisky, previous owner of Carwald’s operations, has also joined LaPrairie Works to assist with helping the business successfully transition into this new division.
“Carwald is a family-owned business and so are we. With their dedicated employee team joining our operations, we look forward to the future growth and success we will be able to cultivate together.” said McManus.
Financing for the acquisition was provided to LaPrairie Works by Dynamic Capital Equipment Finance and BMO.
“The folks at Dynamic Capital, who we have worked with on other transactions, were uniquely responsive to assisting us with the equipment acquisition. Our lead bank, BMO, provided the property financing. We appreciate the support of our lenders in facilitating this acquisition,” said Jim Feragen, chief financial officer, LaPrairie Group of Companies.
LaPrairie Works is a member of LaPrairie Group of Companies and provides highway and bridge maintenance and civil construction services across Alberta. LaPrairie Works currently maintains Alberta provincial highways in contract maintenance areas CMA 501, 502, 503 & CMA 6; these areas include Peace River, Grimshaw, Fairview, Manning, High Level, Fort Vermilion, Red Earth Creek, High Prairie, Kinuso and Swan Hills. In August 2024, LaPrairie Works will also be taking on a new contract maintenance area, CMA 506; this area encompasses Slave Lake, Wabasca, Barrhead, Westlock, Egremont and surrounding areas.
LaPrairie Group of Companies is a family-owned group of companies that provides full-service crane and rigging, heavy hauling, highway and bridge maintenance, civil construction, fleet maintenance and industrial mineral mining and distribution services to customers across Western Canada and Northeastern U.S. The 100% Canadian family-owned group of companies’ services customers through their various subsidiaries, including, LaPrairie Crane, Northland Fleet Services, Entrec Alberta, Capstan Hauling, LaPrairie Works, LaPrairie Works Oilfield Services, and Canadian Silica Industries.
Key Takeaways:
B.C. is proposing fines as high as as $100,000, as well as imprisonment up to 18 months for trucks that impact infrastructure.
There have been 35 crashes that have occurred since late 2021 by over-height commercial vehicles.
The BC Trucking Association has been consulted and supports the proposed increase in maximum penalties.
The Whole Story:
Drivers of commercial trucks involved in infrastructure crashes could face higher penalties after a series of overpass impacts have prompted B.C. officials to take action.
The proposed changes to the Commercial Transport Act (CTA) will enable the courts to impose fines for as much as $100,000, as well as imprisonment up to 18 months upon conviction for violations. Provincial officials stated that infrastructure crashes pose a significant safety risk, having caused millions of dollars in provincial highway repairs, as well as lengthy highway closures and supply chain disruptions that impact all British Columbians.
“With these new penalties, we are taking the strongest action possible to keep our roads safe and to keep people, goods and services moving,” said Rob Fleming, minister of transportation and Infrastructure. “This also sends a message to commercial truck drivers that they are responsible for the safe transportation of goods and services on our roads, and a lax attitude toward safety will not be tolerated.”
The legislative changes are in response to 35 crashes that have occurred since late 2021 by over-height commercial vehicles. Laws surrounding highway infrastructure crashes have not changed since the 1970s. Officials stressed that the overwhelming majority of responsible truck drivers and the trucking industry have urged tougher action on the small number of irresponsible operators that have caused these crashes.
The proposed maximum penalty for commercial transport violations is far above other Canadian provinces and territories, and falls in line with the maximum penalties applied to rail and dangerous-goods safety. The province noted that the BC Trucking Association has been consulted and supports the proposed increase in maximum penalties.
“The BC Trucking Association welcomes the legislative change by the Province to hold carriers accountable,” said Dave Earle, president and CEO, BC Trucking Association. “Imposing stricter penalties for carriers supports road safety and helps protect infrastructure, and ultimately enhances safety for everyone on our roads.”
This change represents the latest in a series of steps the ministry has taken recently to address the issue, including formalizing a progressive-enforcement framework and carrier-suspension policy that provides escalating consequences for carriers who commit repeat offences, including the possible loss of safety certificates, prohibiting their operation.
Fines were recently raised to the highest amount allowed under the current law for over-height vehicles, from $100 to the maximum allowable penalty of $500. A new requirement was also put in place (effective June 1, 2024) for in-cab warning devices to alert dump-style vehicle operators when the dump box is raised. Speed-limiter devices were also mandated, preventing heavy commercial vehicles from travelling more than 105 km/h on B.C. highways.
The province has taken up this issue with federal, provincial and territorial counterparts through the Council of Ministers Responsible for Transportation and Highway Safety. The council is now working to address loopholes where carriers with problematic safety records prohibited in one jurisdiction may continue operating in a neighbouring jurisdiction.
To support the commercial transport industry through this change, the ministry is developing training material that provides commercial drivers guidance on the proper measurement of vehicles and loads. The proper measurement of vehicle/load height is a component of the Mandatory Entry Level Training (MELT) program for Class 1 drivers.
Key Takeaways:
While optimism remains high, contractors’ expectations for the coming year have dipped since 2023, mostly due to rising costs.
A majority of respondents cited labour supply as a top concern, but also noted an easing of supply chain challenges.
While contractors stated that new technology can have excellent ROI and should be a focus, they noted that initial startup costs and training requirements remain a barrier.
Each year the survey polls Ontario’s ICI contractors to gauge their expectations for the year and capture their views on salient issues in the industry. The survey includes ICI contractors from every region in the province, including union and non-union labour models. The results came after 500 telephone interviews with Ontario ICI contractors, 35% general contractors 60% trade contractors 5% unspecified.
Outlook
Respondents expect a mixed picture for the coming year. Coming off the strong momentum in 2023, expectations for business in 2024 ran cooler than in the 2023 survey. However, the majority predicted more business, pointing to the abundance of current work and projects in the pipeline. Two-thirds (66%) of contractors are feeling positive, down from 81% in last year’s survey.
Many contractors commented on the large amount of work currently being done, as well as the number of upcoming projects. Some of the reasons cited for increased activity were the abundance of infrastructure projects, increasing population and housing demand, policies helping to push housing, and government support. Some also anticipated a drop in interest rates, which they believed would spur more activity.
Concerns
The most common reason for a negative outlook, comprising over 20% of the negative open-ended responses, was increasing costs. The most frequent costs mentioned were higher interest rates (noted by almost a fifth), material costs, and high taxes. Other prominent items were labour shortages (16%) and a weak/declining/uncertain economy (12%). Some responses also mentioned government policy and regulation, as well as tight money or a lack of financing.
Consistent with last year’s survey, just over one-third of contractors reported having projects cancelled by the owner. In terms of postponed projects, 56% of contractors report having projects postponed to a later start date (up modestly from 53% in last year’s survey).
Material cost inflation, interest rates, and labour costs were cited as the most common reasons for project cancellations. While high costs were also noted as the primary reason for project cancellations in the 2023 contractors survey, this year’s results suggest that it has become an even greater concern.
Labour
Hiring intentions remained roughly the same as in last year’s survey, with 34% of contractors expecting to increase their hiring. However, contractors also noted ongoing concerns related to labour availability, with 65% reporting that accessing skilled labour would become more difficult in 2024.
Almost three-quarters of contractors (73%) pointed to rising costs as a consequence of skilled labour shortage (up from 63% in last year’s survey), whereas project delays decreased to 52% from 58% last year. Fewer contractors also reported having to turn down work (46% compared to 50%).
Technology
This year, 81% of ICI contractors said that adopting new technologies is important to the future of their business, up from 71% in 2018. The number of naysayers has dropped dramatically to 17% (from 29% in 2018).
Overall, 15% of contractors reported having a budget for technology, which is slightly higher than 13% from our 2018 survey. Productivity enhancement jumped to the top spot of motivators for adopting new tech, comprising 28% of responses. Filling out the top three motivators were reducing costs (22%), and client needs (21%).
Thirty-two percent (32%) of contractors said that cost or budget restrictions was their most significant barrier. This was followed by lack of evidence that new technologies will bring a return-on-investment, and training requirements, both of which were identified as the most significant barrier by 22% of contractors. At 14%, lack of awareness of new technologies was the least commonly selected of the four.
The most commonly used technologies were BIM (44%) and jobsite data collection apps (43%). Other technologies utilized by approximately one-third of contractors include: smart sensors (38%), advanced building materials (35%), clean tech (29%), and prefabricated or modular building (29%).
Despite the buzz around artificial intelligence, robotics, 3D printing, augmented/virtual reality, wearables, digital twins and drones, the survey suggested these technologies are still emerging in terms of widespread adoption by contractors. Of these niche technologies, the use of drones is increasingly being reported. One in five contractors reported they have experience with drones, double what was reported back in 2018.
