Author: Russell Hixson

Vanessa Werden is a partner at construction law firm Jenkins Marzban Logan LLP. Named one of the Top 40 Under 40 in Canadian Construction in 2020, she is licensed to practice in B.C., Alberta, the Northwest Territories, and Ontario. Earlier this year she was ranked by Lexpert as one of two “Leadings Lawyers to Watch” in Construction Law in BC, and one of five “Lawyers to Watch” in Infrastructure Law in Canada.

Whether a small residential development or a complex infrastructure upgrade, many factors contribute to the overall success of a construction project: relationships, weather, site conditions, labour productivity, availability of materials, and cost escalation – to name a few. One of the most challenging phases of embarking on a new project is negotiating risk allocation in the contract. Consider the following strategies to put your project team in a better position to anticipate and manage risk allocation at the outset and throughout project delivery.

Proactively negotiate the contract

Disputes arise, and are often protracted, as a result of inconsistencies and gaps between the intentions of one or more project participants. While it may be tempting to accept a contract as presented, there is often an opportunity to negotiate and make changes. A project team can be well positioned for the successful management and execution of a project when the contract documents have been carefully reviewed and negotiated prior to entering into the contract. A large part of dispute prevention is setting expectations at the outset of the relationship.

Review each contract and its supplementary conditions with a view to your risk tolerance. Consider the willingness of the other party to consider amendments and approach contract negotiations with a list of priorities, much like you would a Christmas wish-list. Even if only a few of the most burdensome provisions are struck or modified, you will be in a better position to protect your bottom line.

Drafting and re-use of old forms of supplementary conditions are often problematic. Terms that modify standard form contracts are often rife with inconsistent language, provisions that conflict with the delivery model set up by the standard form, and wholesale reallocations of risk. Review proposed supplementary conditions with an eye for provisions that:

• Limit or preemptively waive claims, and in particular claims for delays, changes, site conditions, and toxic or hazardous substances;
• Unreasonably shorten notice periods;
• Impose obligations that are inconsistent with standard form contract terms; or
• Reallocate risk for design errors to a party that had no role in the preparation of the design.

Training and legal education

Many industry associations offer courses, and conferences often have a legal education component. Take advantage of these continuing education opportunities. Having an understanding of fundamentals such as key terms, how to read supplementary conditions, the importance of contractual notice requirements, change order processes, and dispute resolution procedures can make your team more confident, prepared, and effective when issues inevitably arise under the pressures of schedule and budget constraints.

Read the contract – and keep it handy

Do not let the contract collect dust. On projects of lengthy duration, the project management team should review the contract at regular intervals. The contract should serve as the primary resource to determine rights, obligations, and process concerning payment, changes, extras, schedule, and claims.

While the contract often holds the answers in terms of legal liability and primary obligations, consider creating internal policies or protocols for specific situations so that the project team understands the precise steps to follow to preserve contractual entitlements and comply with obligations. These may include:

• Creation of notice letter templates;
• Assigning responsibilities to specific team members for considering potential claims;
• Diarizing time limits and notice periods that reflect the contract terms;
• Creating and updating your project accounting system to include event or condition-related cost codes; and
• Keeping a real-time journal of events.

Implement document management policies – and follow them

Construction disputes are inherently document-intensive. The rights and interests protected by the contract terms are often only as effective as the contemporaneous documents available to support them. Project records are necessary to establish time and cost-related claims. Baseline and updated schedules, weekly look-ahead and other planning documents are critical to delay claims. Timesheets, labour and equipment invoices, and other cost records are critical to cost overruns, extras and change order disputes. At the outset of each project – and as the project evolves – ask the following questions:

• What documents do we need to generate on this project?
• Who is responsible for generating, tracking, organizing, and preserving the documents?
• What systems or software will the responsible personnel use for document management?

Comprehensive and consistent document management practices can sometimes expedite dispute resolution processes, and most importantly, place a party in the best positon possible to advance or defend a claim. If it becomes necessary to engage a lawyer, these practices will also help limit legal fees to locate and reorganize tens of thousands to millions of project records. It is far more cost effective to create and maintain a system to organize contemporaneous documentation.

Be ready to adapt as the project and potential claims evolve. Do you need to establish a different coding system to track an ongoing impact? Do you need daily photographs to document the discovery of a geotechnical site condition? Do the superintendents need to create a separate daily report specific to a disputed change? Should you update a particular item at weekly site meetings?

Be mindful of the notice and dispute resolution provisions in the contract

Construction contracts often require strict compliance with dispute resolution steps on short timelines, including notice in writing within a fixed period of time, in a specific form, delivered to a specific person or place. Construction contracts often contain strict mandatory steps – in other words, non-compliance may be a bar to recovery. While you may be able to put together an argument that the other party had substantive notice, the best approach is strict adherence to contractual notice provisions so that you can avoid adding the unnecessary layer of non-compliance to a dispute. Consider diarizing deadlines and creating checklists to make the procedures more intuitive for the project team.

When in doubt, send a letter

A well-drafted and thoughtfully considered contract can go a long way to early resolution of disputes, or prevent disputes altogether. Regardless of the project records generated and the relationship between the parties, never assume that the parties have agreed to waive a contractual requirement for formal notice. Protect your interests and preserve claims by committing the details to contemporaneous correspondence that complies with the contractual requirements.

• Senior Estimator – Montreal, Que. – PCL
• Continuous Improvement Manager – Vancouver B.C. – Aecon Group
• EPCM Project Director, Minerals & Metals – Vancouver, B.C. – Wood
• Regional Director, Operations – Montreal Que. – BGIS
• Director, Rail Fleet Projects – Toronto, Ont. – Metrolinx
• Consulting Director, Impact Assessment (Director Level) – Calgary, Alta. – ERM Group
• Project Director – Vancouver, B.C. – Pomerleau
• Managing Principal – Vancouver, B.C. – HDR
• Vice President, Water Market Lead – Calgary, Alta. – Mott MacDonald
• Construction Manager, Water – Vancouver, B.C. – WSP

The construction industry needs to work together if it wants to address its many challenges. 

This was one of the main messages to come from the first-ever Construction Innovation Summit in Vancouver. The event, organized by the Independent Contractors and Businesses Association, brought together hundreds of the nation’s leaders for a two-day conference focused on pushing the industry forward. The event featured panels, keynotes and talks from some of construction’s brightest minds.

Getting better together

“Collaboration across everything — from architects, engineers, sub-trades, owners, and general contracts — was a very strong theme,” said ICBA President Chris Gardner. “To tackle the challenges that emerge in any project, the foundation is cross-discipline collaboration.”

The group organized the two-day conference in response to the increasing pressures builders face. 

“The theme of innovation in construction is a timely one because when you look at Canada as a whole, we have a big productivity and innovation challenge,” said Gardner. “It has been decades in the making.”

However Gardner noted that construction’s reputation for lagging when it comes to innovation isn’t completely justified. 

“I do think there’s a lot more technology and innovation in the industry than it gets credit for,” he said. “There’s roughly $5 billion invested each year across North America in software directly related to construction.”

But he believes more can be done and, with the multiple challenges the industry is facing, innovation is becoming a necessity. Gardner explained that in 2020 when the global pandemic hit it forced construction to rethink how it operates. This crisis was then followed by global supply chain disruptions. Then material costs rose, inflation became a national issue and interest rates are at record highs. This is on top of an ongoing labour shortage impacting construction and other industries. 

“We’ve sort of gone from one crisis to another and as a result, all these factors are driving contractors and construction leaders to do things better, build more with less and be more efficient,” said Gardner. 

It’s a challenge that trickles down to all Canadians. Gardner noted that the rising costs and risks associated with construction and development are contributing to the housing affordability crisis. 

“Part of dealing with affordability and bringing costs down is building more supply and using innovation to take some of the cost out of the building process,” said Gardner. 

He noted that government also has its own role to play by cutting red tape and approving projects faster. 

Following the pandemic, many have wondered if the industry will be getting back to normal. With the ongoing challenges, Gardner believes that this is the new normal. 

“We actually never got back to normal. COVID was the first big shock,” he said. “There have been lots of other shocks. One right now is the uncertainty of geopolitics. Turn on the news feed and it’s right there. I think everyone accepts that getting back to normal is something that doesn’t seem to be a path right now.” 

But he hopes that events like the Construction Innovation Summit can help galvanized industry leaders.

“There is a whole group of uncertainties but at the same time we need to build more housing and infrastructure,” he said. “The need for that isn’t going away. So it was great to bring everyone together and ask them how we can tackle these challenges.”     

Making construction’s voice heard

Dave Baspaly, president and CEO of the Council of Construction Associations (COCA) in B.C., focused on analyzing government action’s in the province and how the industry can make their voices heard. 

“There certainly has been a labour-leaning force right now that has moved a lot of things into play that have not been good for the industry,” said Baspaly. “And we have not been able to express the consequences because of the speed of the regulatory calendar.”

Baspaly explained that traditionally, changes moved more slowly. This gave the industry more time to react, give input and help shape health and safety regulations. Some of the rapid changes happening include topics like mental health, asbestos, soft tissue damage and job site bathrooms. 

“You have to slow it down and go at the pace of the people,” said Baspaly. “COCA is has been working hard with association members to slow things down. There is no need to go 100 mph with all these regulations concurrently. There is no prize for speed and it will just cause issues.” 

Baspaly also fears that B.C.’s approach could threaten the financial stability of WorkSafeBC. He believes rates will go up and the reserve will be bled down, undermining failsafe features. He also fears that rushed decisions could set precedents that will impact the industry for decades. 

“Once we enter into these situations, even with the best intentions, we end up with some regulations becoming really unworkable in the real world because it’s effectively just a cash transfer — moving money to move out benefits,” he said. “There is no way to repatriate those claims back to where they should be and eventually you have insolvency down the line. We need sustainable regulations that work for labour and the employer long-term. There is not point trying to win at the other’s expense.”

Baspaly stressed that writing emails and letters voicing industry concerns matters, especially when there are large numbers of people and companies doing so. He strongly encouraged the industry to voice their concerns directly or through associations that they are a part of. 

Taking the first steps toward innovation

Amy Marks, executive vice president of Symetri USA and YouTube’s “Queen of Prefab”, spoke about how builders can take their first steps towards innovation and her vision for the near future of construction. 

“I was incredibly impressed by this event,” she said. “You had leaders from all around the region coming together, having conversations, learning from each other. I think it’s important. It’s not about one company doing well when we are trying to address issues around needing more hospitals, data centres, roads and homes. All the boats need to rise and we have to get everybody to change as an ecosystem.”

Marks explained that this ecosystem includes architects, sub trades, general contractors, product manufacturers, engineers, lawyers, risk managers, procurement arms, government, owners and anybody else that touches the construction process. 

“It really takes an ecosystem’s attention and maturity to really enable business to be done differently,” she said.

Her talk also zeroed in on some small steps builders can take to begin industrializing their process. She demonstrated how Revit can integrate with a program called Naviate to start fabricating parts from BIM models. 

She also noted that many are looking to take advantage of AI, machine learning and other emerging tools. But she explained that one first needs to get a concrete idea of what their business goals are so they can begin structuring and organizing their data to accomplish those goals. 

“It’s almost like asking someone if they want to build a library for a third-grade class or if they want to create the Library of Congress. Those are very different,” she said. 

According to Marks, charging ahead with technology changes without a clear idea of what you want can just reinforce bad processes and lead to more waste. 

Looking to the future, Marks sees construction, like many other industries, shifting from being a process to being a product. She envisions an industry where parts of a building can be chosen by designers at the start of a project and that product’s performance, specifications, environmental impacts and other meta data is readily available. 

“You should start thinking about how to make a product out of what you make and how you can digitize it so someone can consume it in an organized manner,” she said.

She believes the mechanical, electrical and plumbing portions of buildings are especially ripe for this kind of innovation. 

“You want people to be able to design with certainty and have little waste,” she said. “A lot of money is made from wasteful business processes. People make money on the lack of information silos. I believe pressure has to come from the top down — the big owners, governments and others — and they have to start incentivizing people not to do that.”  

Key Takeaways:

• The new legislation would allow one secondary suite or one laneway home (accessory dwelling unit) in all communities throughout B.C.
• Municipalities will also be required to allow up to six units on lots currently zoned for single-family or duplex use, depending on size.
• The legislation would shift local planning and zoning processes to happen up front and require municipalities throughout B.C. to expedite and streamline permitting by updating community plans and zoning bylaws on a regular basis. 
• The legislation would also phase out one-off public hearings for rezonings for housing projects that are consistent and aligned with the official community plans.

The Whole Story:

B.C. is opening up home development with sweeping zoning changes. 

The province is introducing new legislation that would mandate that municipalities allow a minimum level of housing density and streamline the development process.

Officials say the changes will result in more small-scale, multi-unit housing, including townhomes, triplexes and laneway homes.

“Anyone looking for a place to live in a community they love knows how hard it is – and outdated zoning rules are making that even harder,” said Premier David Eby. “Constructing mostly high-rise condo towers or single-family homes means B.C. isn’t building enough small-scale multi-unit homes that fit into existing neighbourhoods and give people more housing options that are within reach. That’s why we’re taking action to fix zoning problems and deliver more homes for people, faster.”

Officials explained that historical zoning rules in many B.C. communities have led most new housing to be built mostly in the form of condos, or single-family homes that are out of reach for many people, leaving a shortage of options for the types of housing in between. They added that zoning barriers and layers of regulations have also slowed down the delivery of housing, making people go through long, complicated processes to build much-needed housing.

“The housing crisis has made it harder for growing families looking for more space, seniors looking to downsize, and first-time homebuyers who can’t find a home that meets their needs and budget,” said Ravi Kahlon, minister of housing. “This legislation strengthens the vibrancy of our communities, while building the type of housing that will help us address the housing crisis.”

The proposed legislation and forthcoming regulations will permit one secondary suite or one laneway home (accessory dwelling unit) in all communities throughout B.C.

In most areas within municipalities of more than 5,000 people, these changes will also require bylaws to allow for:

• three to four units permitted on lots currently zoned for single-family or duplex use, depending on lot size;
• six units permitted on larger lots currently zoned for single-family or duplex use and close to transit stops with frequent service.

Municipalities covered by the legislation may permit additional density if desired, but cannot have bylaws that allow for fewer permitted units than the provincial legislation.

The province also plans to speed up local housing development approvals by shifting local planning and zoning processes to happen up front. It will require municipalities throughout B.C. to expedite and streamline permitting by updating community plans and zoning bylaws on a regular basis. 

New proposed changes will also phase out one-off public hearings for rezonings for housing projects that are consistent and aligned with the official community plans. Instead, there will be more frequent opportunities for people to be involved in shaping their communities earlier in the process when official community plans are updated. 

“Modelling future scenarios cannot account for unforeseen circumstances, the changing nature of housing, real estate markets and other factors, but preliminary analysis indicates the province could see more than 130,000 new small-scale multi-unit homes in B.C. during the next 10 years,” said officials.  

To support implementation, the province said it will continue to provide local governments with resources to speed up approval processes, including the recently announced $51 million to support local governments in meeting the new density zoning requirements, and $10 million for the Local Government Development Approvals Program.

The province added that additional legislation to support housing, transit-oriented development and infrastructure will be introduced in the coming weeks. 

Key Takeaways:

• Ontario plans to remove the 8% provincial portion of HST for purpose-built rental home construction.
• Combined with federal cuts, this removes the full 13% HST on qualifying new purpose-built rental housing in Ontario. 
• Ontario is also investigating how to leverage modular construction to meet its goal of building 1.5 million homes by 2031.

The Whole Story:

Ontario plans to cut taxes for construction to get more rental homes built.

The province announced it is taking steps to remove the full 8% provincial portion of the Harmonized Sales Tax (HST) on qualifying new purpose-built rental housing to encourage rental home construction. 

“There has never been a greater need to get rental housing built across the province. This is why our government is taking steps to tackle the housing crisis so that all Ontarians can have an affordable place to live,” said Peter Bethlenfalvy, minister of finance. “Tomorrow, I will provide an update on our plan that will continue with our government’s targeted, responsible approach so we have the flexibility needed to build Ontario and address the uncertainty of today while laying a strong fiscal foundation for future generations.”

Cutting taxes

The removal of the provincial portion of the HST would apply to new purpose-built rental housing such as apartment buildings, student housing and senior residences built specifically for long-term rental accommodation that meet the criteria. The enhanced rebate would apply to qualifying projects that begin construction between September 14, 2023 and December 31, 2030, and complete construction by December 31, 2035.

To qualify for the enhanced HST New Residential Rental Property Rebate, new residential units must be in buildings with at least four private apartment units or 10 private rooms or suites, and have at least 90% of residential units designated for long-term rental.

Currently, the Ontario HST New Residential Rental Property Rebate is equal to 75% of the provincial portion of the HST paid, up to a maximum rebate of $24,000. The enhanced rebate would be equal to 100% of the provincial portion of the HST, with no maximum rebate amount.

In the example of a two-bedroom rental unit valued at $500,000, the enhanced Ontario HST New Residential Rental Property Rebate would deliver $40,000 in provincial tax relief. When combined with the enhanced federal GST New Residential Rental Property Rebate, this would amount to $65,000 in tax relief.

Since fall 2022, Ontario has called on the federal government to remove the HST for certain purpose-built rental housing. In September, Ottawa announced it would totally remove GST for purpose-built rental housing projects. Trudeau then encouraged provinces to do the same.

Together, the provincial and federal actions would remove the full 13% HST on qualifying new purpose-built rental housing in Ontario. 

Developing a modular strategy

The province is also working on the development of a comprehensive modular home strategy. This strategy includes exploring the use of a Request for Qualification process that will identify and pre-qualify companies that contribute to modular housing construction on the scale that can help meet housing goals.

The government is also working to leverage surplus provincial lands and partnering with municipalities to leverage surplus municipal lands in order to help reduce the cost of building attainable homes, including modular homes.

The finalists have been named for this year’s Canadian Centre for Public-Private Partnerships’ (CCPPP) 2023 National P3 Awards.

Since 1998, the awards have celebrated and recognized Canada’s cutting-edge infrastructure projects involving public sector entities like governments and educational institutions partnering with the private sector. Individual leaders in the sector are also celebrated in the Champion Awards, which will be announced at the P3 2023 gala luncheon.

This year, the Council has retooled its project award categories to better reflect the changing dynamics of Canada’s P3 infrastructure pipeline and to highlight the need to create better, more resilient and longer lasting infrastructure for our communities. 

“The awards committee is pleased to recognize a broad range of successful P3 partnerships in this year’s awards shortlist,” said Brad Nicpon, partner, McCarthy Tétrault LLP, and chair of the national awards committee. “We congratulate the partners of each shortlisted project for demonstrating the efficiency and flexibility of the P3 model and look forward to formally announcing award-winning projects and individuals at P3 2023 next month.”

Here’s who is in the running:

P3 Transaction 

Ontario Line – Rolling Stock, Systems, Operations & Maintenance Contract

Partners: Metrolinx, Infrastructure Ontario and Connect 6ix General Partnership (Plenary Americas, Hitachi Rail, Webuild Group, Transdev Canada, IBI Professional Services (Canada) Inc., NGE Contracting Inc., National Bank Financial Inc., and Sumitomo Mitsui Banking Corporation)

Ontario Line – South Civil, Stations and Tunnel Contract

Partners: Metrolinx, Infrastructure Ontario and Ontario Transit Group (Ferrovial Construction Canada Inc., VINCI Construction Grands Projets, AECOM Canada Ltd., COWI North America Ltd., GHD Limited, SENER Group, Janin Atlas Inc., and Agentis Capital)

South Niagara Hospital

Partners: Niagara Health, Infrastructure Ontario and EllisDon Infrastructure Healthcare (EllisDon Corporation, EllisDon Capital Inc., EllisDon Infrastructure Healthcare, EllisDon Facilities Services Inc., and Parkin Architects Limited)

Thunder Bay Correctional Complex

Partners: Infrastructure Ontario, Ontario Ministry of the Solicitor General and EllisDon Infrastructure Justice (EllisDon Capital Inc., EllisDon Corporation, Zeidler Architecture Inc., DLR Group, and EllisDon Facilities Services Inc.)

P3 Design & Construction

Highway 104 Sutherlands River to Antigonish Twinning Project

Partners: Nova Scotia Department of Public Works and Dexter Nova Alliance GP (Municipal Enterprises Limited, Nova Construction Co. Ltd., BBGI SICAV S.A., DNA Design Build Limited, a joint venture between Dexter Construction Company Limited and Nova Construction Co.; and DNA Operations Limited, a joint venture between Municipal Enterprises Limited and Nova Construction Co. Ltd.)

Ontario Court of Justice – Toronto

Partners: Infrastructure Ontario, Ontario Ministry of the Attorney General and EllisDon Infrastructure (EllisDon Capital Inc., EllisDon Design Build Inc., Renzo Piano Building Workshop, NORR Limited, EllisDon Facilities Services Inc. and SNC-Lavalin O&M Inc.)

Environmental, Social and Governance

Forensic Services and Coroners Complex

Partners: Infrastructure Ontario, Ontario Ministry of the Solicitor General and CSS (FSCC) Partnership (Concert Infrastructure Ltd., Concert Infrastructure Fund and Dexterra Group) 

Gordie Howe International Bridge

Partners: Windsor-Detroit Bridge Authority and Bridging North America General Partnership (ACS Infrastructure Canada Inc., Fluor Canada Ltd. and Aecon Concessions)

Library and Archives Canada’s Gatineau 2 Project

Partners: Library and Archives Canada, Public Services and Procurement Canada and Plenary Properties Gatineau (Plenary Americas, PCL Investments Canada Inc., PCL Constructors Eastern Inc., B+H Architects, and EQUANS)

South Niagara Hospital

Partners: Niagara Health, Infrastructure Ontario and EllisDon Infrastructure Healthcare (EllisDon Corporation, EllisDon Capital Inc., EllisDon Infrastructure Healthcare, EllisDon Facilities Services Inc., and Parkin Architects Limited)

Key Takeaways:

• Surrey’s Illegal Construction Enforcement Team was formed in 2022.
• It’s mission is to enforce its bylaws and target residential construction that is done without permits, inspections, or compliance with safety standards.
• Six demolitions were ordered after a recent enforcement blitz.

The Whole Story:

Surrey’s Illegal Construction Enforcement Team has been cracking down on unlawful construction work. 

The city recently launched successful legal actions against six property owners who have illegally constructed buildings without permits, and in many cases have occupied the structures without permits and violated the BC Building Code. In all court cases, the building structures were ordered demolished.

“Building without proper permits is not only illegal but extremely reckless as it endangers the builders, occupants and neighbours,” said Mayor Brenda Locke. “The Illegal Construction Enforcement Team was put into place in 2022 to ensure construction projects comply with BC building safety codes and zoning regulations. The City of Surrey will continue to enforce its bylaws to the full extent whenever necessary. Property owners who engage in illegal construction should be aware that they may face legal action, demolition costs, and insurance problems.”

Here are the six cases:

Case 6 – Two property owners built an extension and laneway house that violated lot coverage, density, and setback restrictions. The structures were constructed without any building permits or requisite inspections and despite a stop work notice posted by the City. A court decision was made on Oct. 24, 2023 ordering the structures be demolished within 60 days of the city issuing a permit for demolition.

Case 5 – The property owners built an addition to their home and added a secondary suite without permits. The court order prohibited occupancy or use of the addition and secondary suite.  The owners subsequently breached the court order and found them in contempt and ordered the owners to pay a fine totalling $6,000, plus a contingent fine of $13,000, and pay the City’s legal costs.  A new hearing was set and heard on October 18, 2023 and the owners were ordered to demolish the home additions built without permits. 

Case 4 – The property owners built an addition to their existing home without a permit. The property owner agreed to a consent order that required them to demolish the addition by December 16, 2022.

Case 3 – A property owner-built structures without permits, dumped fill on their land, and damaged trees. The court ordered them to vacate all the structures, demolish them within 90 days, remove the fill, and plant 16 new trees. The court order was issued on June 24, 2022.

Case 2 – A property owner added a second storey to their existing home without a permit and occupied the addition. The court ordered them to stop the occupancy, apply for a demolition permit within 30 days, and demolish the addition within 60 days after getting the permit. The court decision was made on July 18, 2023.

Case 1 – A number of property owners built a detached building on their land without permits and allowed someone to live in the building. The court ordered them to stop the occupancy, apply for a demolition permit within 15 days, and demolish the structures within 60 days after getting the permit. The court decision was made on July 11, 2023.

In 2022, the Illegal Construction Enforcement Team was put into place to enforce its bylaws and target residential construction that is done without permits, inspections, or compliance with safety standards. Beyond seeking compliance in court, the City of Surrey has also increased fines for illegal building activities.

Key Takeaways:

• Metro Vancouver has voted to implement significant development cost charge increases to fund infrastructure projects in a ‘growth pays for growth’ strategy.
• The move has drawn stern criticism from Federal Housing Minister Sean Fraser.
• The fees are set to increase starting in 2025.

The Whole Story:

Construction fees are about to jump in the Lower Mainland and the federal government is not pleased. 

Officials with Metro Vancouver, a federation of 21 municipalities in the region, have voted in favor of significant development cost charge (DCCs).

Rising fees

The fees associated with building new residential and non-residential buildings across the region will go up significantly over a three-year period between 2025 and 2027. The fees vary between municipalities and by project type, but will triple in some cases. 

Metro Vancouver plans to use the revenue generated by the fees to fund billions of dollars worth of growth-related park, water and sewer infrastructure over the next 30 years.

While consulting with industry leaders, Metro Vancouver found opposition to the raises, but determined that the impacts were comparable or less impactful than other factors. 

“Many in the development industry expressed the rate increase would have a negative effect on residential and industrial development,” reads Metro Vancouver documents. “Given the challenges industry is already facing, such increased financing and construction inflation and other DCC increases and building code changes, the development industry expressed the proposed DCC is another charge adding a burden to development.”

Metro Vancouver commissioned a study to examine the financial impact of the proposed DCCs. The findings in the study concluded that the proposed DCCs will have a “commensurate impact” to the financing rate changes over the past 12 months, but “significantly less of an impact” than the construction inflation and changes in unit prices over the past 12 months.

Criticism from Ottawa

Even before they were approved, the increases drew the attention of Federal Housing Minister Sean Fraser, who wrote to the board asking them to rethink the plan as it goes against Ottawa’s strategy.

“Significant increases to development charges have the potential deter development by offsetting the impact of other measures that reduce the cost of building,” wrote Fraser in a letter to Metro Vancouver. “When projects do advance, increased charges on development can lead to higher housing costs for renters and homeowners, making it more difficult to find somewhere affordable to live.”

Fraser argued that as part of their Housing Accelerator Fund applications, cities in the region have proposed various initiatives to help get more homes built, more quickly, including waiving their own development charges. 

“While I also appreciate that some hold the perspective that ‘growth pays for growth,’ we will all pay for stagnation as a result of a lower pace of construction,” wrote Fraser. “A ‘growth pays for growth’ approach ignores the value that new development, new property tax bases, new businesses, and new neighbours bring to our communities.”

Increasing scrutiny

It hasn’t just been talk. In September, Fraser announced he would postpone the announcement of Housing Accelerator Fund deals in Surrey and Burnaby due to the DCC increase plans. 

Following Fraser’s comments, the Vancouver Regional Construction Association asked its members for their thoughts. 

“We sent a survey to our members in September in response to the Federal Government postponing the Housing Accelerator Fund announcement in Surrey and Burnaby,” said Jeannine Martin, VRCA president. “The general response was that we need to find ways to fund aging infrastructure. However, increasing developer fees to fund aging sewer systems and parks is not going to help alleviate the housing crisis.” 

Fraser said he will be re-examining the proposed initiatives in each city’s application, and will make “necessary adjustments” where the initiatives conflict with Metro Vancouver’s DCC plans.

Brickeye, a construction data analytics technology company, has announced the successful first closing of a $10 million investment round.

The company welcomed new investors BDC Capital’s IP-backed Financing Fund and Graphite Ventures, with additional funding from existing investors GreenSky Ventures, Brightspark, EDC, and MaRS Investment Accelerator Fund. Brickeye intends to use the funds for continued growth of its risk mitigation and productivity platform for the construction and insurance industries.

“We are excited about the opportunities that lie ahead as we continue to innovate and empower the construction industry with our technology,” said Tim Angus, CEO of Brickeye. “This investment round reaffirms our commitment to providing game-changing solutions that reduce risk and drive productivity, ultimately benefiting everyone involved in construction projects.”

Harnessing the power of Internet of Things (IoT) technology, Brickeye’s suite of solutions enable job site monitoring, intelligent alerts and analytics, and smart automations. The company says this approach empowers general contractors, owners, developers, and insurance providers to better mitigate risk, boost productivity, and safeguard margins of high-rise building and infrastructure construction projects. Brickeye is transforming how insurance providers place, underwrite, and protect policies by helping insureds de-risk projects in pre-construction and mitigate risk during construction.

“Brickeye has enormous potential to positively disrupt the construction and insurance industries with its job site IoT platform which optimizes data capturing, risk management, productivity, as well as reducing the environmental footprint of construction sites,” said Anne-Marie Bourgeois, Partner, Intellectual Property-Backed Investment at BDC Capital. “The company’s IP strategy will be an important asset in its growth journey.’’

Key Takeaways:

• Quebec plans to pay students training in critical trades $750 per week to get a professional studies certificate.
• Officials noted that province is short about 6,500 construction workers.
• The province hopes the funds will help training 4,000 to 5,000 new tradespeople.

The Whole Story:

Quebec wants to fast-track construction careers by paying aspiring tradespeople to get training. 

Premier François Legault announced the province’s new plan to train 4,000 to 5,000 new carpenters, excavator operators, heavy machinery operators, refrigeration technicians and tinsmiths. 

Legault told reporters that this will be supported by accelerated training programs where students in those trades will receive $750 per week to obtain a professional studies certificate.

Those who enrol could be eligible for scholarships of between $9,000 to $15,000 upon graduation.

Legault said the program is important as the province is short about 6,500 construction workers.

The announcement was celebrated by the Association de la construction du Québec (ACQ)

“For the ACQ, being able to count on a well-trained workforce in the construction sector is fundamental to building the Quebec of tomorrow,” said the group. “In this sense, the training announced will allow, among other things, those wishing to redirect their career towards the construction sector to realize this dream while being paid. This initiative highlights the Quebec government’s commitment to promoting the growth of the construction industry while offering new professional opportunities to workers.”

The program is expected to cost roughly $300 million. 

Key Takeaways:

• The final weld was done near Kitimat, B.C.
• The milestone was achieved after five years of construction.
• The work is the last step before mechanical completion which the team says is well on track for their year-end target.

The Whole Story:

After five years of construction, the Coastal GasLink project has achieved 100% pipe installation across the entire project route, connecting northeastern B.C. to LNG Canada’s facility on the west coast. 

The final “golden weld” took place at the base of Cable Crane Hill in Section 8 West near Kitimat, B.C. earlier this month.

With that weld, all 670km of pipe has been welded, coated, lowered into the trench, tested, and backfilled. From the Wilde Lake Compressor Station near Dawson Creek to the Metering Station in Kitimat, physical construction on the project is now complete.

The work is the last step before mechanical completion which the team says is well on track for their year-end target.

While completion activities advance, the Coastal GasLink said its team continues to work on clean-up and reclamation along the route, including time sensitive work that must take place prior to the onset of winter. 

This work will continue post mechanical completion and commissioning and also factors in erosion and sediment control (ESC) measures as required to protect the environment and meet commitments. Following mechanical completion, the team will be planning the introduction of gas.

The pipeline is designed to deliver 2.1 billion cubic feet per day (bcf/d) of natural gas with the potential to deliver up to 5 bcf/d, through additional compression along the route.

The project runs from northeastern B.C. to the LNG Canada facility in Kitimat, B.C. From there, LNG Canada will prepare the gas for export to global markets by converting the gas to a liquefied state (LNG).

Graham

Graham’s Daly Overpass team admires a prairie sunrise in Brandon, Manitoba. The project will include a new four-lane bridge with a separate pedestrian and active transportation bridge. 

Ontario Line

Crews excavated 15 metres of a new sewer tunnel as part of the Ontario Line project. The 15.6-km subway line in Toronto will run from Exhibition Place, through downtown, all the way to the Ontario Science Centre.

Diamond Schmitt

Crews have officially topped off the Ottawa Public Library – Library and Archives Canada joint facility. The project team can now begin working on the building’s curved roof.

Clark Builders

Indigenous leaders help break ground on the Kainai Peacemaking Centre for the Blood Tribe near Cardston, Alta. According to Clark, new centre will serve a beacon of restoration, preserving communal bonds through traditional Blackfoot practices.

Wildstone Construction

Some wild critters leave their mark at a Wildstone Construction site.

Wales McLelland

Wales McLelland shows off construction progress on its TransCold Distribution project. The 79,200 sq. ft. building will contain a state-of-the-art 51,000 sq. ft. freezer and cold dock. It also includes 10,500 sq. ft. of office and 10,100 sq. ft. of dry warehouse.

Pitt Meadows Plumbing & Mechanical Systems

A helicopter delivers a Viessmann boiler to the Royal Inland Hospital Phase 2 project roof. According to Pitt Meadows Plumbing, Viessmann boilers are renowned for their energy efficiency, reliability and sustainability. EllisDon, Coldstream Helicopters Ltd, and EagleWest Cranes worked with Pitt Meadows Plumbing to achieve a successful delivery.

Axiom Builders

Axiom crews have completed ground-floor slabs for the Archetype Vancouver | Main + First, developed in collaboration by QuadReal Property Group and Hungerford Properties.

JEN COL Construction

JEN COL Construction finishes the last few details on the new Theresa C. Wildcat Early Learning Centre in Maskwacîs, Alta.

Fraser Crossing Partners

A group of students from the UBC Steel Bridge engineering design team visit the Pattullo Bridge Replacement Project.

The shot of the month goes to…

Aecon

Aecon announced that the NouvLR team on the Réseau express métropolitain (REM) project has completed the central wall of the REM tunnel under Mount Royal – revealing the two distinct tracks.

It’s a childhood memory almost everyone shares. Taking a shovel somewhere in the woods and seeing how deep you can dig.

These teams are digging on a whole other level with their massive tunneling projects. When you can’t go over or around, sometimes your best option is to go underground. Tunnels are critical for a wide range of infrastructure, including roads, water treatment, power generation, transit and much more.

The George Massey Tunnel Replacement

Originally planned to be a bridge, this replacement for the aging George Massey Tunnel has been a long time coming. After spending years of studies and political disagreements, the $4.15B project now has three short-listed bid teams. The project involves building a new toll-free, eight-lane tunnel along Highway 99 between Richmond and Delta. The winning team is expected to be chosen next spring.

Broadway Subway

Big things are happening underneath the streets of Vancouver. The Broadway Subway Project is a 5.7 km extension of the Millennium Line, from VCC-Clark Station to Broadway and Arbutus. 700 metres will be elevated, extending from VCC-Clark Station to a tunnel portal near Great Northern Way. Five kilometres will be tunneled below the Broadway Corridor. The tunneling is being done by two boring machines, named Phyllis and Elsie. Just this month, Phyllis broke through to the fourth of six underground stations planned. But don’t fret. Phyllis won’t be lonely long. Elsie is expected to reach the same point later this fall. The new line is scheduled to open in 2026.

Burnaby Mountain Tunnel

What’s the quickest way to get past a mountain? You go right through it. As part of the Trans Mountain Expansion Project, crews will use a tunnel to connect Burnaby Terminal and Westridge Marine Terminal. The team says this avoids impacts on residents and existing infrastructure. Trans Mountain’s contractor, Kiewit Ledcor TMEP Partnership (KLTP) will used a tunnel-boring machine to construct the 2.6-km tunnel through Burnaby Mountain. Drilling wrapped up last September after 225 mining days with 20 hours of mining per day.

Louis-Hippolyte-La Fontaine Tunnel repairs

Sometimes an old tunnel just needs a bit of sprucing up. Quebec officials are hoping $2.5 billion in repairs will keep the Louis-Hippolyte-La Fontaine tunnel, which connects the island of Montreal to the South Shore, in service for the next 40 years. The main interventions in the tunnel consist of major structural rehabilitation, upgrading operating equipment, redesign of service corridors and adding fire protection. Crews are currently repair the tunnel’s tube structure and carrying out the reconstruction of concrete slabs on Autoroute 25. Work is expected to wrap in 2026. The tunnel opened to traffic in 1967.

Hydro One Tunnel

This year Hydro One, Ontario’s largest electricity transmission and distribution service provider, launched construction on a new tunnel that will run 85ft below ground in downtown Toronto, from the Esplanade to Bay and Dundas. The tunnel will be 12ft in diameter, approximately the size of three park benches, and will house new transmission cables, replacing cables that have served Toronto’s downtown core since the 1950s. Hydro One is investing approximately $120 million dollars in the infrastructure renewal project.

Twin SEM Tunnels Project

What’s cooler than digging one tunnel? Digging two tunnels, of course. But it wasn’t easy. Toronto’s Highway 401/409 Twin SEM Tunnels Project involved construction two rail tunnels under 21 active lanes of highway traffic, alongside the existing active rail corridor, and had to be completed with zero impacts to either active transportation system. The complex project, expanding the Kitchener GO corridor as part of Metrolinx’s Regional Express Rail program, was developed by Toronto Transit Partners, a consortium consisting of EllisDon, STRABAG, WSP, Dr. G. Sauer & Partners, and Jensen Hughes. Their efforts did not go unnoticed. The team was awarded the the 2022 Project of the Year over $100 million by the Tunnelling Association of Canada (TAC). 

Ashbridges Bay Treatment Plant Outfall

The largest subaqueous (a fancy way of saying “underwater”) tunnel to be built in Toronto, the Ashbridges Bay project is already turning heads. It won Tunneling Project of the Year from the TAC, the 2021 and 2023 TAC Canadian Innovation Initiative Award, and Bentley’s Year in Infrastructure 2020 Awards for digital delivery advancements. The new outfall is expected meet peak design flows under highest recorded lake water level conditions while achieving regulatory standards. It will be one of the largest outfalls constructed in North America and is designed to significantly improve water quality along Toronto shorelines and contribute to improve the overall environment of the region.

Key Takeaways:

• In January, the project team estimated the project would cost $30.9 billion, nearly $10 billion more than their estimate just a month earlier.
• Following the revised cost estimate, the Government of Canada announced it would spend no additional public money on the pipeline.
•  In March, the project team announced that construction was close to 80% complete, with mechanical completion expected to occur at the end of 2023. They expect the pipeline will be in-service in the first quarter of 2024.

The Whole Story:

The Trans Mountain Pipeline Expansion Project is in serious financial trouble, government reports show. 

According to documents released by Canada’s Auditor General, for the second year, the Trans Mountain Corporation’s year-end financial statements disclosed a “significant uncertainty” about the Crown corporation’s ability to continue operating. 

The uncertainty was related to the corporation’s ability to fund the remaining construction costs and to make the necessary payments on its existing debt. 

“While this disclosure did not cause us to modify our audit opinion on the Trans Mountain Corporation’s 31 December 2022 financial statements, we assessed the uncertainty to be important enough to mention it in our report,” read the report. “During our audit work, we also assessed that the corporation appropriately described the matter in a note in its financial statements.”

Earlier this year, the corporation revised its cost estimate for the pipeline expansion project to $30.9 billion. The corporation had previously reported costs of the project in December 2022 to be $21.1 billion. In early 2023, the corporation proposed a borrowing plan to finance the remaining construction costs.

The Treasury Board approved both the revised cost estimate and the borrowing plan in April 2023 through the 2023–27 corporate plan of the Canada Development Investment Corporation (the Trans Mountain Corporation’s parent Crown corporation). This corporate plan also anticipates that the revenue from the transport of crude oil in the expanded pipeline will begin in the first quarter of 2024.

In February 2022, the Government of Canada announced it would spend no additional public money on the pipeline. Since then, Trans Mountain Corporation has had to obtain external financing to fund the remaining costs of the project. 

“If the corporation cannot finance the full remaining construction of the pipeline expansion, it will be unable to put the expanded pipeline into service to generate revenue,” concluded the report.  

In July 2023, the corporation reported that the borrowing limit on its existing credit facility with a group of Canadian financial institutions, which is guaranteed by the Government of Canada, was increased to $16 billion. Notably, as of 31 December 2022, the corporation had already borrowed $7.2 billion from this credit facility. 

“Given that it will need additional funding to meet the remaining construction costs, the corporation, in its unaudited financial statements for the second quarter of 2023, continued to report a significant uncertainty over continuing operations,” stated the report. “Our mandate includes bringing important matters like this to Parliament’s attention.”

The original Trans Mountain Pipeline was built in 1953. The expansion is essentially a twinning of this existing 1,150-km pipeline between Strathcona County (near Edmonton), Alberta and Burnaby, B.C. It will create a pipeline system with the nominal capacity of the system going from approximately 300,000 barrels per day to 890,000 barrels per day. The project involves laying 980 km of new pipeline.

 In March, the project team announced that construction was close to 80% complete, with mechanical completion expected to occur at the end of 2023. They expect the pipeline will be in-service in the first quarter of 2024.

AECOM has been appointed technical advisor for the Hamilton LRT project by Metrolinx.

The project is a 14-kilometre transit line will be the Hamilton, Ont.’s first light rail transit system and will be designed to accommodate expected future growth and development, improve connectivity and attract economic development in the rapidly growing area.

“As Ontario advances its record investment in public transit, we look forward to working with Metrolinx and our partners to support a more connected and economically vibrant Hamilton through accessible and sustainable transportation,” said Richard Barrett, chief executive of AECOM’s Canada region. “AECOM has played a critical role in light rail projects across Ontario and Canada, and our teams are excited to deploy their depth of experience and local expertise to deliver this transformative project.”

AECOM says its integrated team will be supporting Metrolinx on the delivery of the full breadth of infrastructure for the Hamilton LRT.

“World-class transit is critical to urban development, especially as we seek to design more sustainable cities,” said Mark Southwell, chief executive of AECOM’s global transportation business. “This project will set Hamilton apart as a leader in public transportation, preparing it for a more livable, low-carbon future. As we deliver major transit projects across the globe, the Hamilton LRT is the latest example of how our Sustainable Legacies strategy continues to improve social and environmental outcomes for communities.”

Infrastructure improvements will span the entire project corridor, and include:

• Replaced sewer
• All new watermains
• New gas mains
• New hydro lines
• New telecommunications lines
• Restored sidewalks and roads

Key Takeaways:

• The report asks city officials to increase the total housing target to 65,000 new rent-controlled homes by 2030.
• The city predicts that meeting those goals would cost between $28.6 billion and $31.5 billion across the next seven years and requires contributions from all levels of government.
• The report recommends 22 actions for the city, as well as the federal and provincial governments to address the affordable housing crisis.
• The plan will be put in front of the city’s Executive Committee next week (Oct. 31) in front City Council next month.

The Whole Story:

The city of Toronto has released a $30-billion plan to address the region’s affordable housing crisis. 

The report responds to the City Council’s direction to develop a plan to approve 25,000 new rent-controlled homes in addition to what was already planned, thereby increasing the city’s total housing target to 65,000 new rent-controlled homes by 2030.

Of the overall 65,000 new rent-controlled homes target, funding has already been secured to deliver 4,455 homes. The estimated cost to deliver the remaining 60,545 homes is between $28.6 billion and $31.5 billion across the next seven years and requires contributions from all orders of government.

“We urgently need to build more affordable housing faster, so people in our city can find a home they can afford,” said Toronto Mayor Olivia Chow. “That’s why we’re leading a generational shift in both how we deliver housing and the type of housing we’re going to build. We’re coordinating all City divisions to pull in one direction – building housing faster – and we’re setting new priorities to build rent-geared-to-income and not-for-profit housing.”

The report will be considered by the City’s Executive Committee on Tuesday, Oct. 31 and by City Council at its meeting from Wednesday, Nov. 8 to Friday, Nov. 10.

The report describes how Toronto’s housing system could be strengthened with a higher degree of coordination among city divisions, agencies and corporations, as well as other orders of government and the not-for-profit, co-op and private sectors. The report also recommends an increased role for the city in the direct delivery of housing with staff to explore a city-led development model at five “housing ready” sites.

The actions in the report are focused on increasing the supply of non-market homes (homes owned by the public, not-for-profit and co-op sectors), protecting existing rental homes and supporting renters. Key actions include:

• Accelerating the development review and approval of new homes.
• Working with the federal and provincial governments to increase access to funding and low-cost financing to move projects from approval into construction.
• Establishing a more robust role for governments in both delivering and supporting the delivery of new homes.
• Developing new and sustainable funding models.

The report recommends 22 actions for the city, as well as the federal and provincial governments, including: 

• Dedicating more city-owned land to create new affordable homes. 
• Accelerating the delivery of “housing ready” projects on City and not-for-profit owned land. 
• Streamlining and optimizing people, processes and technology to expedite approvals and housing delivery.
• Developing new and sustainable funding models to expand the delivery of affordable and RGI homes within mixed-income and sustainable communities.
• Supporting the not-for-profit and co-op housing sectors.

The report proposes increases to the city’s previous HousingTO Plan target of approving 40,000 affordable rental homes by 2030. The combined new target is now 65,000 rent-controlled homes including a minimum of 41,000 affordable rental, 6,500 RGI homes and 17,500 rent-controlled market homes.

The report also recommends that on a go-forward basis, all new affordable homes meet the city’s income-based definition of affordable housing.

To deliver all the homes, officials expect between $28.6 billion and $31.5 billion in funding must be secured in the next seven years. The city expects this will require contributions from all levels of government. The report includes estimates that each government stakeholder will need to deliver between $500 million and $800 million in funding per year, in addition to repayable financing.

Key Takeaways:

• B.C.’s construction industry accounts for 10.3% ($27B) of the province’s GDP.
• More than 218,000 people rely directly on B.C.’s Construction industry for a paycheque.
• Number of credentialed tradespeople: 163,900.
• Number of credentialed tradeswomen: 7,376 (4.5%).
• Value of proposed construction projects in B.C.: $174 billion.
• Number of construction jobs in B.C. that will be unfilled due to labour shortages by 2032: 6,000.

The Whole Story:

The BC Construction Association Construction (BCCA) says the industry is in dire need of legislative reform in its latest compilation of data and analysis. 

The group’s conclusions come from its recently published Fall 2023 BC Construction Association (BCCA) Industry Stat Pack, combined with findings from an economic and policy report published today by the organization.

Construction demand is strong

The numbers show demand for construction remains high in B.C., with major projects currently underway at an estimated value of $157 billion. 

This represents an increase of 16% over 2022, and 109% over the past five years. However, the estimated value of proposed major projects has dipped to $174 billion in comparison to $220 billion last year, which the BCCA says is signaling possible future decrease in robustness and growing insecurity with regard to economic prospects.

Real investment in B.C.’s industrial, commercial, and institutional (ICI) construction sectors has been essentially flat (-1.6%) through the first half of 2023. It remains over 10% below its pre-pandemic level (February of 2020) in real terms, with institutional and government construction being the singular growth segment in the interim.

Recent improvements in the availability of construction inputs have resulted in a slowing of price increases to non-residential building in the past year, registering at 7% compared to 13% between 2021 and 2022. Labour costs and the non-residential building price index sit, respectively, at 18.4% and 28.6% above pre-pandemic levels.

Challenges put pressure on builders

The group stated that the ongoing struggle of dealing with decreased commercial demand and rising costs of material and labour, coupled with waning procurement standards on public sector projects, lack of prompt-payment legislation, and a declining workforce, paints a “dim picture” for contractors over the next few years.

“Construction has never been busier, yet the pressures to meet this demand are equally high. Interest rates, rising wages and the high cost of materials all factor into the equation. It is clear that these pressures are causing layoffs,” said Chris Atchison, BCCA president. “We’ve seen indications that construction workers, both skilled and unskilled, are moving out of the province as a direct result of B.C.’s high cost of living, housing shortage, and the perception of better opportunities elsewhere. Our workforce is invaluable, and we cannot afford to lose a single tradesperson or journeyperson. B.C. needs an effective affordable multi-unit housing strategy aimed at keeping workers like those in the construction sector within the province.”

The group argued that prompt payment legislation, something they have long advocated for, would provide immediate relief to contractors. 

The BCCA explained that when contractors wait months for payment, they experience significant financial risk and take on the increased cost of debt, which can put them in danger of bankruptcy. 

“Government seems to be under the illusion that contractors all have the deep pockets needed to essentially fund large scale projects. Not so. About 90% of B.C. contractors are small companies, and they are often paid three or six months after the last nail has been pounded, or the last coat of paint has dried. No other industry has to endure that,” said Atchison. “Last Spring, we were encouraged to hear that the Attorney General would be convening a large table working group on this issue. We’re still waiting. The time to talk has passed. The time to act is now. The situation is dire. Unlocking cash flow is an economic necessity and in the best interests of every community in British Columbia.”

According to the province, the Ministry of Attorney General staff have been monitoring prompt payment efforts in other provinces and participated as part of a table established under the Canada Free Trade Agreement to establish best practices with respect to prompt payment legislation.

“One point that has been clear from this review is that there is no single model legislation that has been adopted by all or even a few provinces,” said provincial officials. “Each province has customized legislation that responds to the unique needs of their construction and skilled trades communities.”

Officials say that starting in late 2023, Ministry of Attorney General staff will begin a large table consultation with all interested associations and interest groups in the construction industry to review the different legislation that has been adopted in other provinces to determine how prompt payment legislation could work best in B.C.

Labour shortages

Despite 8% growth in the number of ICI construction companies in B.C. over the last 5 years (26,262), the number of tradespeople in the industry dropped 8% over three years, and 9% since 2019. The average company size has contracted by 10% over the previous three years to an average of 6.24 workers.

From the first quarter of 2023 to the second, B.C.’s construction employment base diminished by 14,500 workers, a decline approaching 6%.  According to the association, this represents the worst performance of any Canadian province in both absolute and percentage terms.

“We need to get enough people skilled up to replace the tens of thousands who are retiring in the next few years in British Columbia.  One way to do that is to be more diverse about who we hire and train,” said Atchison. “Everyone, including members of traditionally underrepresented groups, should feel welcome within the construction industry. There is absolutely no lack of employment opportunities for anyone interested in exploring a career in construction.”

The complete Stat Pack, economic report from Sage Policy Group, and more information regarding the B.C. construction industry can be found at www.bccassn.com/stats.

Shaun Fantauzzo has been named vice president of policy and major projects for First Nations Major Projects Coalition (FNMPC). Based in Toronto, he will steer FNMPC’s policy objectives and play a key role in advancing Indigenous opportunities for economic and equity participation in major projects. Fantauzzo spent nearly a decade in progressively senior positions in the federal government, notably at the Finance Canada and Natural Resources Canada.

Dan Mott, president of Mott Electric, has been inducted into the Electrical Contractors Association of BC’s Hall of Fame. Dan’s grandfather William founded Mott Electric in 1930 and passed the company to his son, Don who ran it before Dan took over from his father in 1986.

Dave S. Dulay, vice president of project delivery (major projects) and alternative project delivery at McElhanney, has been selected as the new chair of Transportation Association of Canada (TAC’s) Geometric Design Revisions and Additions Subcommittee. The group supports TAC’s Geometric Design Committee in developing and improving Canada’s geometric design guidelines to enhance road operations and public safety while considering environmental, social, and economic impacts.

Jennifer Campeau is Aecon’s new vice president of indigenous relations. Campeau is a member of the Anishinaabe from Yellowquill First Nation with kinship ties to the Eastern Region III Metis Nation of Saskatchewan. With over 20 years of Indigenous policy experience, she will oversee and evolve Aecon’s Indigenous Relations activities – driving Aecon’s Indigenous partnerships and organizational actions supporting its Reconciliation Action Plan.

Barbara James, whose ancestral name is Ma̲lidzas, has been awarded the Outstanding Student Leadership Award by the British Columbia Institute of Technology (BCIT). The Red Seal carpenter and BCIT faculty member has taught high-performance building to students and trainers alike for the BCIT School of Construction and the Environment, participated in instructional videos with Nuxalk youth at BCIT, and was involved in the Building a Greener Future Together pilot project with the Institute.

Of Barbara’s many successes, she is most excited to return to her hometown of Port Hardy, B.C. to use her skills to help the Gwa’sala-‘Nakwaxda’xw Nation—from which she descends—rebuild the nation’s Big House, where traditional Indigenous ceremonies such as potlatches are held.

– BCIT

Mathew Raso has been hired as senior vice president of roads at Infrastructure Ontario. Raso, a design and construction expert, has over 16 years of experience in the industry and a civil engineering degree. His last position was lead project manager for Green Infrastructure Partners.

Jacob Bros has announced three additions to its executive team. Matt Buechler has been promoted to vice president of pre-construction services⁣, Tony McCadden is now director of Major projects, and Todd Strynadka has been named vice president of JT Ready Mix & manager of technical services.⁣

Borja Franco is ACCIONA’s new head of business development for ACCIONA Concessions in North America after spending a decade in Australia. With over 14 years’ experience at ACCIONA in the origination, development, and financing of major infrastructure and PPP projects, Franco has been responsible for managing multiple consortium stakeholders including consortium partners, subcontractors, investors and lenders throughout the procurement phase of large infrastructure projects.

Dan Valin has joined the Cement Association of Canada as its new director of communications and marketing. Prior to joining the association, Valin was a senior account director for Alphabet.  

Walid Abou-Hamde, executive director at Ontario Road Builders’ Association (ORBA), announced that he has joined Skilled Trades Ontario’s board of directors which helps advance the province’s workforce development strategy.

Darcy Kray has decided to retire from his role as president of Durwest Construction Management after 40 years in the industry. Kray co-founded the company in 1983. Zoe Mitchell is Durwest incoming president, effective this month. A CPA by trade, Mitchell recently spent six years as the president of CCH Management Group of companies.

We are immensely grateful for Darcy’s dedication and leadership. He is an expert in his field and his vision, passion, and unwavering commitment to delivering quality work has been instrumental in shaping Durwest’s legacy.

– Durwest

Colleen Fiske-Pinaud has begun a new role as communications advisor for the Canada Nova Scotia Offshore Petroleum Board after spending nine years with the Construction Association of Nova Scotia (CANS). Fiske-Pinaud stated that she is excited for the opportunity to be a part of the organization as it expands to include offshore renewable energy.

Tammy Amstutz is joining the Calgary Construction Association team as director of workforce strategies. Prior to the announcement, Amstutz was working as chief people officer at ThinkTech Software Inc. where she played a pivotal role in the company’s rapid expansion over the last year. The association stated that part of her focus will be on helping address construction labour shortages and recruit more people into the industry.

⁣Bruce Gordichuk has been named interim CEO and new president of construction for the Tahltan Nation Development Corporation (TNDC). Gordichuk will assume the role following the departure of Paul Gruner, who resigned effective October 20th.

Monte McNaughton has joined Woodbine Entertainment as their new vice president. McNaughton recently left a 15-year career in politics, notably as Ontario’s minister of labour, immigration, training and skills development. Woodbine operates like a not-for-profit organization with the sole mandate of sustaining and growing horse racing in the province.

Key Takeaways

• The $750-million project includes building facilities to boost transloading service capacity. 
• Construction has begun and is expected to wrap in 2026. 
• Officials say the project will significantly decarbonize operations.  

The Whole Story:

The Prince Rupert Port Authority (PRPA) is starting work construction on a $750-million large scale logistics project to expand capacity. 

The Ridley Island Export Logistics Project (RIELP) will boost the capabilities for rail-to-container transloading of multiple export products at the B.C. port. 

Port officials say the investment promises to deliver critical trade infrastructure that will improve supply chain resiliency, strategic market access and enhanced competitiveness for Canadian exports. 

“The development of this innovative project and its introduction of large-scale export logistics capabilities at the Port will fundamentally improve competitiveness for Canadian exporters, and marks the opening of a new chapter of Prince Rupert intermodal growth,” said Shaun Stevenson, president & CEO, Prince Rupert Port Authority. “It also demonstrates the strong alignment of our corporate, government and community partners with PRPA’s strategic vision for growing Canadian trade,”

Project plans include a 108-acre greenfield development on Ridley Island that will begin operation in Q3 2026. Ray-Mont Logistics will develop and operate facilities that provide transloading service capacity for 400,000 TEUs (twenty-foot equivalent units) for agricultural, forestry, and plastic resin products. Ray-Mont currently operates a multi-product transload facility on a temporary Ridley Island location.

The project will also include an expansion of the existing Ridley Island Road Rail Utility Corridor that will facilitate unit trains 10,000 feet in length with direct access to the site from the CN network. The transload facilities will be connected to Fairview Container Terminal by direct private road access, the 5-kilometer Fairview-Ridley Connector Corridor, ensuring all product movements will be within PRPA jurisdiction and fully avoid public infrastructure. 

The port noted that the full electrification of transload facilities, optimization of rail, and the minimal truck drayage cumulatively represent a significant step forward in decarbonizing Canada’s export supply chains.

Port officials added that In addition to its commercial advantages, RIELP will result in stronger volumes for loaded export containers moving through the Port of Prince Rupert and a more sustainable balance in its intermodal import and export trade. 

The development of increased logistics capacity is seen by PRPA as a strategic prerequisite to supporting the stability of existing and future container volumes through Prince Rupert, and the trade, employment and economic opportunities they support.

Local Indigenous partners will be active participants in the development and operation of RIELP. The primary contract for Ridley Island site development has been awarded to an Indigenous joint venture arrangement that includes Metlakatla First Nation, Lax Kw’alaams Band, Gitxaała Nation and IDL Projects Inc. Metlakatla and Lax Kw’alaams are also majority owners of Gat Leedm Logistics, which will be a primary service provider of truck drayage services.

Total capital investment in RIELP will be approximately $750 million, and is being provided by PRPA, Ray-Mont Logistics, CN, the Government of Canada, and the B.C. goverment. Canada’s National Transportation Corridor Fund is providing $64.8 million and B.C.’s Stronger BC program is providing $25 million toward the project.