With many Canadians distressed about the housing crisis, high cost of living and economic uncertainty impacting their daily lives, the Canadian Construction Association (CCA) is launching an industry call-to-action urging the federal government to partner with the construction industry on building a strong foundation for a stronger Canada.
Estimates by the Canadian Mortgage and Housing Corporation reveal that Canada needs to build 3.5 million additional homes above and beyond what is currently projected to be built by 2030. With the current construction workforce shortage, the industry does not have the workers required to meet the projected building needs. Add to that inflation, rising interest rates and affordability, and Canada’s deteriorating foundational infrastructure and it becomes clear that Canada is in dire need of a holistic and long-term strategy to get on track.
Through its online advocacy platform, the Construction Action Network, CCA is urging its 18,000 members and the public to send a letter to their local MPs reminding them of the importance of partnering with the industry to make the following strategic changes:
Commit to a comprehensive, long-term infrastructure investment strategy that includes a 25-year plan for housing and trade-enabling infrastructure.
Address the workforce shortage by modernizing the existing immigration policy and points system to better reflect the workforce needs of the Canadian economy.
Modernize procurement to ensure practices better balance risk-sharing between public contracts and the private sector, reduce red tape, and accelerate approvals for critical projects.
While the federal government has launched various programs, such as the Express Entry program to target immigrants with high-demand skills as well as several initiatives under the National Housing Strategy to fast track the building of new homes, these measures are short-term solutions to problems that require consultation, partnership and long-term planning.
In addition to the campaign, CCA will be hosting its annual Hill Day event on Nov. 7, 2023, where industry representatives will meet with parliamentarians to discuss the construction sector’s essential role in creating and maintaining the infrastructure Canadians use daily. This includes the foundational infrastructure at the heart of new homes and communities.
With construction as its partner, the federal government can build a stronger Canada through comprehensive infrastructure investment, workforce development and procurement modernization.
Eleven rural communities will receive nearly $4.9 million in provincial grants from the Rural Integrated Roads for Growth (RIRG) program to rebuild 14 bridges and large culverts.
When combined with municipal dollars, the total estimated value of the projects is more than $12.3 million.
“We prioritized investments in rural bridges and roads to keep our economy going during the pandemic,” Highways Minister Lori Carr said. “Four years ago, Saskatchewan pledged to rebuild 100 bridges over four years. With the announcement of this latest round of projects, we will have rebuilt or replaced 105 rural bridges.
“Thanks to $1 million in grants from RIRG, our rural municipality will replace two bridges,” RM of Lacadena Reeve Brad Sander said. “Investments in transportation infrastructure support our farmers and keep our rural economy growing.”
RIRG assists rural municipalities to build and upgrade local infrastructure. The program provides grants up to 50 per cent of each project’s total cost, to a maximum of $500,000.
It’s that time of year where we begin to say goodbye to this year and look ahead at what the upcoming year will bring. As the summer construction season nears its end, I know you are eager to see what is contained in the fall tender schedule. Now that it is out, I want you to know what the board and I are doing about it.
Off the top, we are building new relationships. As you know, there is a new minister, Lori Carr, but there are also new faces in other prominent roles in the ministry. We look forward to working with Kyle Toffan, the new deputy minister, who previously served in the Ministry of SaskBuilds and Procurement, where he was deputy minister. There is also a new chief of staff, Josh Hack.
As we approach an election year in this province, we are eager to promote how Saskatchewan as a whole can benefit from increased investment in trade infrastructure. First, we need the ministry to understand that changes are necessary to prepare for that brighter future. The board and I recently met with Carr and Toffan to lay out those changes. We have been consistently pointing them out to others who have been in her position, but this is an opportunity for someone new to see them from a fresh perspective.
Making these changes would send a strong message not just to the heavy construction industry and the industries who supply ours, but the world. Canada – and Saskatchewan in particular – has a strong reputation for being a global source and provider of fuel, fertilizer and food. Robust infrastructure is necessary to move commodities and people through the country and out to other parts of the world. When it comes to planning how that trade infrastructure will be maintained and enhanced, our country’s reputation is weak. That impacts our competitiveness in global trade, which adds a challenge to growing our economy.
Here at home, there are changes that could be made to signal to the world we are serious about competing.
First, Saskatchewan’s government must do better when it comes to getting work out in a timely fashion. Tenders continue to hit the market too late. The 2023 Fall Tender Schedule was only recently released. In the fall of 2022, there were several projects listed on the fall tender schedule that were released too late. Some were not released at all, leaving them to be carried over. It is not just contractors who are impacted by these delays, but also those in design and engineering, materials, fuels, aggregates, oils and equipment supply.
We also learned something very important about how to assess the quantity of projects in the tender schedule. Projects that are tendered with a two-year completion date have all production quantities linked to the year it was actually tendered. So, for example, a project on the 2022 fall tender schedule with a 2024 completion date shows all quantities in 2022 – this is why we see the same projects announced multiple times in the budget speech.
What this does, from our perspective, is skew the overall budget numbers and mislead our industry when it comes to the overall quantities shown on the tender schedule. We have asked the ministry to better display these types of jobs to paint a more realistic picture of what’s coming to the market.
When contractors have a longer – and more accurate – look down the road at what the level of investment is projected to be, they are able to better determine their business priorities and investments. They can be better organized and prepared, making them more efficient, productive and competitive. They can become more capable of managing costs and preparing to serve emerging market sectors. Long-term, continuing to release projects too late in the year will have a negative impact on industry capacity.
Second, neighbouring provinces are projecting their investment in the coming years while Saskatchewan continues to announce annual spending. In the spring of 2022, the Manitoba government announced a $2.4 billion three-year capital plan. The plan commits to investing a minimum of $500 million per year into highways. Alberta announced this year that it will spend $2.3 billion on roads and bridges as part of its 2023-26 Capital Plan.
Saskatchewan released a low level of work in the 2023 Fall Tender Schedule. On top of that, this year there was only one asphalt plant working in the province producing product for the Ministry of Highways. The SHCA board made it clear that our industry has the capacity to complete three times the amount of work shown on the last few fall tender schedules. That capacity is available to the Saskatchewan government, but it will be the Manitoba and Alberta governments who will see an advantage because of their commitment to long-term, sustainable funding of major highways and trade corridors.
This year’s construction season saw almost all the major paving contractors looking for work in our neighbouring provinces. Eventually, we will see more companies leaving the market, which will reduce the amount of competition in our province. This will have a negative impact on the cost and quality of building and maintaining our critical infrastructure. We encourage Minister Carr to bring a clear message to the cabinet table that there is a strong case for increasing infrastructure investment sooner rather than later, especially considering the challenges posed by inflation.
We all know construction is not immune to increased costs. It will cost less to invest in trade infrastructure now than it will later, and the return on that investment is substantial. For every dollar of investment, in the short term, there is an immediate return of one dollar and thirty cents to the province.
We are seeing the provincial government make announcements about social spending, such as the one they made at the start of October dedicating $90 million to address homelessness and addictions. Being able to find the money to announce spending on areas such as that is possible when we have a strong economy generating income for the provincial government. The return we would get on investing in trade infrastructure can make more such announcements possible.
Investing in infrastructure that supports trade helps to grow our economy by ensuring we are competitive in the world trade markets. Over the longer term, that return on the investment could be as high as four or five dollars during the asset’s lifespan. That means infrastructure built and maintained by the members of SHCA will contribute to Saskatchewan’s continued economic growth. That growth will contribute to paying for all the social investments – in health, education and more – that ensure a high quality of life for people living in this province. If we don’t sustain our investment and make changes to support the industry, it won’t be there to provide for our future needs.
Next is an election year. I, along with the board, will continue to hammer the message, “If you can’t move it – you aren’t selling it.” We look forward to the budget in the spring of 2024 that shows taxpayers the Saskatchewan Party is serious about creating “growth that works for everyone.”
Change can be good. In our province, I am working with the board to make that case so we see positive change that benefits more than our industry. It is change that is beneficial to the daily lives of the people living and working to make this province even better than it is today.
On August 23, 2023, KMS Construction Ltd. pleaded guilty in Swift Current Provincial Court to one violation of The Occupational Health and Safety Regulations, 2020.
The company was fined for contravening clause 3-1(c) of the regulations (being an employer, fail to comply with the duties of an employer at a place of employment including the provision of any information, instruction, training and supervision that is necessary to protect the health and safety of workers at work, resulting in the serious injury of a worker). As a result, the Court imposed a fine of $50,000 with a surcharge of $20,000, for a total amount of $70,000.
Two other charges were withdrawn.
The charges stemmed from an incident that occurred on June 17, 2021, near Gull Lake, Saskatchewan, when a worker suffered serious injuries in the cab of a scraper buggy.
The Ministry of Labour Relations and Workplace Safety works with employers and workers to eliminate workplace injuries and illnesses through education, inspections and prosecutions.
Link Developments Ltd has been selected as the team that will construct and maintain the new Regina General Hospital (RGH) parkade with construction set to begin this fall.
Link Developments Ltd was selected through a two-stage procurement process. A Request for Qualifications resulted in four teams moving forward to a Request for Proposals, where Link Developments Ltd was ultimately selected as the successful team.
“This milestone is significant in addressing the challenges encountered by residents, staff and other users of the Regina General Hospital parkade facility,” SaskBuilds and Procurement Minister Joe Hargrave stated. “Our commitment remains unwavering as we strive to deliver accessible and convenient infrastructure for the benefit of all Saskatchewan residents.”
“Our government is very pleased to have a construction team in place for the new parkade at Regina General Hospital,” Health Minister Everett Hindley said. “We have heard the concerns of staff and visitors to the hospital. This parkade will provide a safe, convenient option for parking for years to come.
The new parkade at the RGH will be built in the northwest section of the existing visitor parking lot. Link Developments’ proposed design includes a parking facility with a total of 1,005 stalls, consisting of 873 stalls in the parkade and 132 surface stalls, for a net increase of 686 parking stalls.
“Ensuring a better quality of life for all Saskatchewan people remains a priority for this government and the key objectives for this project drive us closer toward this goal,” Regina Pasqua MLA Muhammad Fiaz said. “These include improving safety, accessibility and convenience for staff, patients, families, and visitors at Regina General Hospital.”
“The Saskatchewan Health Authority is pleased that the construction of the parkade at the RGH is moving forward,” Interim Vice President, Quality, Safety & Chief Information Officer, of Saskatchewan Health Authority Michelle Mula said. “With safety at the forefront of our decision making, the parkade aims to provide additional safe and accessible parking at RGH for staff, patients and visitors.”
Regina-based Link Developments Ltd. has been operating in Saskatchewan since 2014. Link Developments’ team recently built the Eastgate Centre – Medical Professional Building with a heated parkade in Regina. They also built the University of Saskatchewan stadium parkade and the Avenue P Medical office building in Saskatoon.
“Our dedicated team of local consultants and contractors, in partnership with Cornerstone Credit Union, is grateful for the opportunity to construct this parkade for our community,” said Carmen Lien, Link Developments team spokesperson.
“Understanding the eager anticipation surrounding the necessity of this parkade, we are thrilled to bring this long-awaited project to life, serving our neighbours and families in Regina with heartfelt pride.”
Construction is expected to begin September 2023 and expected to be completed by the end of 2024.
The leaves have turned colours, the temperature is dropping and as summer turns to autumn, we look forward to working through changes that have come up in this industry.
At the end of last month, numerous changes were made to Saskatchewan’s cabinet. That includes Lori Carr becoming the Minister of Highways, taking over from Jeremy Cockrill who moved to the Ministry of Education. I thank Minister Cockrill for his interest in learning about our industry and its successes and challenges, and I look forward to bringing Minister Carr up to speed along with her executive team.
I, along with the SHCA board, will be meeting with Carr in September and October to talk about this construction season, including what was built and what work may be carried over. I have heard that during this season there was only one asphalt plant processing material for highways work, when during a normal season we should see at least four or five mixing material. I will also be pointing out to her the fact that many Saskatchewan contractors were building outside of the province this year.
I have questions for her and her officials too, to learn what they see coming up in the months and years ahead. I want to discuss project planning and the upcoming budget. Then, there is the memorandum of understanding that was signed in April by our province and Manitoba to strengthen the economic corridors between both provinces. We would like to know more about what the next few years of work between the provinces will include.
Also, I will take the opportunity to point out that our neighbouring provinces have made multi-year commitments to highways in recent budgets. In Manitoba’s last provincial budget, the government announced a $2.4 billion, three-year capital plan. The plan commits to investing a minimum of $500 million per year into highways. In Alberta, the provincial government announced it was investing $7.3 billion over three years in its Transportation and Economic Corridors capital plan.
I will be sharing with Carr that inconsistent and uncertain funding burdens our industry. It makes it difficult for members to prepare for the future when the amount of capital investment can swing up and down by tens of millions of dollars from one year to the next. Deciding to invest in equipment becomes difficult, as does creating jobs and retaining employees. Those neighbouring governments are making three-year commitments, but we know provinces would see more value from five-year investments.
I know you are busy evaluating what you can realistically complete this season. With the temperature taking longer to rise in the morning, the number of hours you have in a day for pavement to cure is shortening and so being efficient matters a lot right now if projects are to get done. However, I also know you are looking forward to what other projects are coming up to bid on, so it is important that we discuss the fall tender schedule. We are working with the ministry to better identify when projects will hit the market.
Then, next month, I have an opportunity to join those gathered at the 2023 provincial Area Transportation Planning Committees Convention in Saskatoon on Oct. 10-12. Those who attend tend to be government officials, rural, urban, and Indigenous leaders, and industry specialists from across the province.
The theme of this year’s conference is “Transportation for Growth & Prosperity in Saskatchewan.” I have been asked to present on how SHCA hopes to shape a growing Saskatchewan and where we see opportunities for growth. I will be sharing who we are as an association, why strategic investing in trade infrastructure can encourage Saskatchewan’s and Canada’s economic growth, and the advocacy SHCA undertakes on behalf of our members. I will also be sharing the support we have in the province from those in other industries who recognize the importance of the work you do and the infrastructure you build and maintain for their own growth and success.
Finally, I look forward to seeing you at the board meeting and a first-of-its-kind event that SHCA is developing for our industry in November.
The first-ever industry summit for Saskatchewan, which SHCA is excited to spearhead, will bring together contractors, suppliers, engineers and other professionals to focus on infrastructure and transportation. There will be great industry education sessions, an innovative trade show and awesome networking opportunities spread over two days on Nov. 29 and 30 at the Delta Hotel & Convention Centre in Regina. More information will be published on SHCA’s website as well as in the next issue of Think BIG magazine.
Until then, I know you will be working safely and efficiently to complete everything on your to do list as the board and I work to get your challenges and successes recognized and addressed.
The Government of Saskatchewan is ramping up repaving work this year with 230 kilometres (km) of improvements at key corridors around the province, including a segment of Highway 33. It is part of a plan to improve another 1,000 km of highway this season.
“Our government is in year four of the Growth Plan and we made some commitments to Saskatchewan people, including a pledge to improve 10,000 km in a decade,” Highways Minister Jeremy Cockrill said. “Our construction crews are working all over the province making improvements to our transportation network which will improve safety and enhance key transportation corridors.”
The 38-kilometre repaving project between Fillmore and Stoughton will also include four intersection improvements on Highway 33. Construction began earlier this month and is expected to continue through most of the summer.
“Maintaining and improving rural highway infrastructure is important for the people who work, live and visit our communities,” Fillmore Reeve Russell Leguee said. “The upgrades to Highway 33 will positively contribute to the safe and reliable movement of agricultural commodities to markets domestically and globally. Ensuring connectivity between communities and providing safe and reliable roads ensures a better quality of life for people living in rural areas.”
The general contractor is Langenburg Redi-Mix of Regina.
Drivers can expect delays with multiple work zones in the area at times. Traffic will be guided by a pilot vehicle. Remember to slow to at least 60 km/hr through the work zone, be extra cautious and obey all signs.
A weekly highway construction update is published on Saskatchewan.ca to provide drivers with the latest details on projects underway to help plan safe and efficient travel.
Major safety improvements on Highway 16 have been completed. A ribbon cutting ceremony was held to commemorate completion of the final set of passing lanes which have opened near Saltcoats.
“The Yellowhead Highway is a major transportation corridor that is used to move people and goods across the province,” Highways Minister Jeremy Cockrill said. “With the expanding canola crushing facilities in the area, there are a lot of large trucks traveling through the area and we’re taking steps to move that traffic safely and efficiently. These passing lanes allow drivers to pass slower moving vehicles safely.”
The multi-year passing lanes project extends from Clavet, east of Saskatoon, to the Saskatchewan/Manitoba border, east of Yorkton. This highway safety project was a key investment in Saskatchewan’s $2 billion stimulus program during the global pandemic to help drive economic recovery. In all, 26 passing lanes and multiple intersection upgrades were constructed.
“As representatives of Saskatchewan truck transport, we are pleased to see investments in the highway network that assist the movement of trucks and most importantly ones designed to improve the safety for our professional drivers,” Saskatchewan Trucking Association president Susan Ewart said. “The passing lanes and intersection enhancements will be welcome by our members.”
Passing lanes are typically a minimum of two kilometres and allow drivers to pass slower moving vehicles safely.
Summer has so many of us spending time outdoors. As we do, we can see other people all around us, which is a big change after years of living through a pandemic, isolating ourselves from one another.
Everywhere we look, there are simply more people living – and enjoying life – in this province. And that is not just a perception. Statistics Canada recently stated that Saskatchewan’s population increased by 33,101 over the past year, which is a growth of almost three per cent. We now have 1,221,439 people living in our province. We know the provincial government’s Growth Plan from 2020 to 2030 is aiming for our population to grow to 1.4 million people, so we are on our way.
But growing the population of our province is not the only goal of the Saskatchewan government. The Growth Plan has numerous economic goals, and our industry has a role in ensuring a number of them are achieved.
Saskatchewan is embracing its role of providing the world with the food, fertilizer and fuel it needs. We know that roads and highways connect our landlocked province to the world. The construction our industry undertakes helps other industries achieve the goals set by the province. For example, there was the earthwork necessary ahead of the development of canola crush facilities that will increase Saskatchewan-based processing of canola grown in this province. There is also our industry’s work to improve roads in northern Saskatchewan which supports doubling the size of Saskatchewan’s forestry sector.
In my role, I am advocating for deeper and more widespread recognition of how our industry contributes to the growth of the province’s economy. That recognition is coming from leaders in other sectors, and I am working with them to broadly deliver their important perspectives on the value of investing in trade and transportation infrastructure to the people and politicians of this province.
While those other industries, such as agriculture and forestry, grow stronger, our industry is also advancing. SHCA is pleased to play a role in that advancement. While I work with leaders those in other sectors, I never lose sight of the relationships I have with members. SHCA is dedicated to representing, advocating and supporting its members and, in that spirit, I am very much looking forward to a first-of-its-kind event SHCA is developing for our industry.
You might have seen posts on social media recently about the first-ever industry summit for Saskatchewan. SHCA is excited to spearhead this event, which will bring together contractors, suppliers, engineers and other professionals to focus on infrastructure and transportation. There will be great industry education sessions, an innovative trade show and awesome networking opportunities spread over two days on Nov. 29 and 30, 2023, at the Delta Hotel & Convention Centre in Regina.
The complete agenda for this key event is still coming together, but I am looking forward to highlighting technological advancements within the industry through these education sessions. You will have opportunities to learn more about the production and processing of materials as well as troubleshooting asphalt plants and more sustainable ways of paving. You can expect to see virtual reality being used to attract young people to our sector and conduct safety training.
The summit will offer personal and professional development opportunities. I’m excited to learn from Pamela Barnum, who will be one of our keynote speakers. She is a trust strategist and body language expert who developed her skills and insights during her years as an undercover police officer and federal prosecuting attorney. In her presentations, she teaches others how to detect deception and interpret nonverbals in their personal and professional lives.
As with all our events, please visit saskheavy.ca and check under the Events section of the website, where we will add details about this event in the months to come, including how to register. Right now, if you are interested in participating, I would be happy to hear from you. One of the ways you might participate is by showcasing new technology that can benefit the heavy construction industry, but I am open to hearing about other types of contributions that can be made to this event. You can email me, and I’ll respond to you.
For now, soak in this summer and all this season has to offer because before you know it, November will be here. Until then, I look forward to developing a fantastic event to bring us together once again!
