by SHCA SHCA

After Calgary’s Water Crisis, a Globe Analysis Finds Trouble Brewing in Canada’s Pipes

“We’ve got really aging infrastructure in all of our cities that is 50 to 100 years old that needs replacement – and we put it off,” said Robert Haller, executive director of the Canadian Water & Wastewater Association, which advocates the federal government on behalf of municipal water agencies.

“It’s almost like gambling. Each year, you roll the dice, and you hope you’ll get another year out of your infrastructure. But at some point, you have to replace it. It’s always cheaper to plan a replacement than to let it collapse.”

Click here to read article.

by SHCA SHCA

Saskatchewan, Alberta and Manitoba Continue Collaboration on the Joint Memorandum of Understanding

Ministers for highways and transportation in Saskatchewan, Alberta and Manitoba met on July 4 in Saskatoon to continue work to strengthen economic corridors that support Canada’s supply chains. It has been a year since a Memorandum of Understanding (MOU) was signed by the three provinces.

The MOU commits the partners to jointly working to improve our shared transportation system, to ensure the strength and competitiveness of the Prairie provinces.

Over the past year, the focus has been on regulatory harmonization, advocacy and regional planning. These priorities will continue with additional work on improving multi-modal transport infrastructure for the efficient movement of exports and imports.

The provinces are working on co-ordinated improvements that benefit the entire region, and they link producers more efficiently to markets across the globe. They are creating a prairie regional economic corridor to guide strategic investments in transportation. 

“By keeping the momentum of the Prairies MOU going, we can continue to improve western economic corridors that will enable the efficient movement of Prairie exports and imports to and from markets around the world,” Alberta Minister of Transportation and Economic Corridors Devin Dreeshen said.

“For Saskatchewan people, improving transportation efficiency with initiatives like these supports our strong and growing export-based economy,” Saskatchewan Highways Minister Lori Carr said. “A strategic approach helps the province invest in key services and helps build and protect our quality of life.”

Saskatchewan has achieved its Growth Plan pledge to increase exports by 50 per cent. The province continues to expand export infrastructure to increase the mobility of Saskatchewan’s products to international markets over the next decade. Exports support a vibrant business community and ensure an improving quality of life for Saskatchewan people.

Seventy per cent of Saskatchewan’s economy is dependent on exports. In 2023, Saskatchewan exported $49.3 billion in goods. Saskatchewan goods reached 163 countries, with 32 of those countries receiving over $100 million in provincial exports.

by Shantel Lipp Shantel Lipp

SHCA Backs Construction Industry

Shantel Lipp - Portrait

It would be hard for any Canadian to not notice the conversation around housing construction. 

Cities in our province, like every other province in the country, have seen their populations grow while the growth of housing stock has not kept up with demand. The need for housing in Canada has been a major concern over the last few years, with report after report coming out about this challenge.   

Like many in Saskatchewan’s heavy construction industry, I am paying attention to this topic because this issue is about more than residential construction. The infrastructure necessary for this housing will be built by our industry because our members build more than roads. 

Major projects are underway in Saskatchewan cities to address the underground infrastructure before revitalizing the surface infrastructure. The Saskatchewan Heavy Construction Association (SHCA) is there to support the heavy construction companies working on those projects. 

Municipal leaders in our province are describing the strain they are under as they are asked to make decisions around upgrading infrastructure in their communities and securing the necessary funding to complete these projects.  

As our cities grow, we are seeing councils having to make decisions about updating aging infrastructure while also looking at expanding that infrastructure to ensure all residents receive the municipal services they require at their homes and businesses. Councils also face conflicting perspectives when it comes to infill construction, with some pushing to build multi-unit developments in existing neighbourhoods where there already is infrastructure, while others resist such changes to their neighbourhoods.  

The push for infill housing is led by the federal government, which is offering cities tens of millions of dollars through its $6 billion Canada Housing Infrastructure Fund. Of this, $1 billion is being distributed to cities for urgent infrastructure needs such as improving wastewater, stormwater and solid waste systems.  

To many Canadians, that $1 billion sounds like a lot of money, but when you look at Regina as an example, it puts that amount into context. In early July, Mayor Sandra Masters said the city’s infrastructure has been “chronically underfunded” as council considered the Water Network Expansion, a critical project already underway to build a new pump station, plus two additional storage reservoirs that are necessary to supply water to Regina’s growing east end. Masters says  Regina has “a billion-dollar infrastructure problem.” 

A recent report by the Canadian Urban Institute plainly states that a plan to build homes must also factor in the need for water, wastewater, roads, transit, power-distribution infrastructure and more. In the introduction of A Jump Start: Providing Infrastructure for More Housing, the report makes it clear why we can’t discuss one without the other. “Bluntly speaking, any new housing needs toilets and tap-water,” the report states. 

This report says that in fast-growing parts of Canada, the cost of providing a full range of infrastructure likely exceeds $100,000 per home over time. It also says that the cost of infrastructure to serve 5.8 million new homes in Canada over the next decade exceeds anything existing municipal fiscal arrangements could support. 

Municipal governments receive less than 10 cents of each tax dollar collected in Canada, the report says, while municipalities own and operate most of the public infrastructure. That is why all three levels of government have a history of sharing the cost of this infrastructure through capital grants or lending programs. 

The SHCA maintains excellent relations and access to all levels of government. We are in regular communication with MPs, MLAs, ministers, mayors and councillors to put forward our members’ interests. 

We maintain these relationships not just to bring forward concerns. We also offer solutions to elected officials and bureaucrats. Our members have very valuable insights into the projects these governments undertake, and we offer recommendations on how to be more efficient and effective in these projects.  

Being an SHCA member is the most effective way for a heavy construction company to be heard by all three levels of government. SHCA members do so without the risk of standing alone as they deliver what can sometimes be difficult messages to deliver. The message coming from industry – as opposed to a single company – can have more impact.  

There are some difficult days ahead for these governments who are being asked to deliver more to taxpayers who are not agreeable to paying more. The Canadian Urban Institute recommends four measures to help municipalities pay for this necessary infrastructure. The first is moving from pre-payment to secured payment for infrastructure over its useful life. The second is ensuring all beneficiaries contribute to infrastructure’s cost over time. The third is reducing municipalities’ infrastructure financial risks and limitations by using innovative financial models and private capital. The fourth and final recommendation is to tailor infrastructure financing models to the fiscal risks and realities of Canada’s small, rural and remote municipalities. 

Knowing what other organizations are proposing to the government that can potentially impact our industry is also important. This helps the SHCA  keep members informed, but it also allows us to find opportunities to build relationships with organizations to present a united front on issues we have in common. 

We saw this with the Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA) working with the Canada West Foundation and the Canadian Construction Association to get the Shovel Worthy report in front of and seriously considered by governments. SHCA members are automatically also members of the WCR&HCA and the Canadian Construction Association, who collaborated with the Business Council of Canada and the Canadian Chamber of Commerce to advocate for a nation-building strategy that would invest in Canada’s trade corridors to enable and harness trade-based economic growth.  

I look forward to hearing from all SHCA members about the different types of projects you work on in various parts of our province. I want to understand the challenges and successes you are experiencing so we as an association can support your needs and interests because it is likely your company is not alone in its experience. When it comes to municipal infrastructure, I will continue to maintain my connections and keep listening to the conversation out there so I can advocate to the best of my ability on your behalf. 

by SHCA SHCA

Company Fined $325,000 for Workplace Injury and Fatality

Yellow hard hat
kardaska/123rf

On May 14, 2024, Spiritwood Stockyards (1984) Ltd. pleaded guilty in Spiritwood Provincial Court to two violations of The Occupational Health and Safety Regulations, 2020.

The company was fined for contravening subsection 7-6 (1) of the regulations (being an employer fail where there is a risk of injury to the head of a worker to provide approved industrial protective headwear and require a worker to use it, resulting in the serious injury of a worker), as well as contravening subsection 9-2 (2) of the regulations (being an employer fail to ensure that workers use a fall protection system at a temporary or permanent work area if a worker may fall three metres or more; or there is a possibility of injury if a worker falls less than three metres, resulting in the death of a worker).

The Court imposed a total fine of $232,142.86 with a surcharge of $92,857.14, for a total amount of $325,000. Five other charges were withdrawn.

The charges stemmed from two separate incidents that occurred near Spiritwood, Saskatchewan. The first occurred on November 11, 2021, where a worker was struck by a gate and seriously injured while attempting to load bulls onto a trailer.

The second incident occurred on January 26, 2022, where a worker was fatally injured while attempting to clear snow off a roof when the worker fell through a fiberglass skylight.

The Ministry of Labour Relations and Workplace Safety works with employers and workers to eliminate workplace injuries and illnesses through education, intervention and enforcement.

by SHCA SHCA

Water Security Agency Investing $1 Million in Water Infrastructure Projects to Provide a Sustainable Future for Northern Saskatchewan

Farmer looking at equipment with sun setting in background
pavelshlykov/123rf

The Water Security Agency (WSA) is working on key water infrastructure projects stretching from the Prince Albert to Meadow Lake regions. These projects are within three Northern Saskatchewan watersheds, the Churchill River Watershed, Saskatchewan River Watershed and North Saskatchewan River Watershed.

The projects include:

  • Cowan Lake Dam structure replacement
  • Candle Lake Dam structure and stoplog upgrades
  • Christopher Lake outlet structure

“A sustainable and reliable water supply is fundamental and is especially important in Northern Saskatchewan,” WSA Minister David Marit said. “As Northern Saskatchewan continues to grow, and we see increased water demands – maintaining our infrastructure is critical to continue to meet the social, environmental and economic needs for all users in these regions, including our Indigenous communities and rural municipalities.”

More than $1 million is being invested into these three projects in 2024-25. 

The Cowan Lake structure replacement, east of Meadow Lake, is the largest of the three projects. This year, WSA will begin work on the detailed design of the new Cowan Lake Dam, which will include an upgraded dam, replacing the control structure and a riffle fishway approximately 35 metres upstream of the existing structure. This is a multi-year project and is currently in the procurement stage. 

North of Prince Albert, the Candle Lake Dam project is concluding safety upgrades to improve the operating conditions of the structure for safety to both WSA operators and the public, as well as a pedestrian walkway to provide the public dedicated space to cross the structure. WSA also installed a new system for lifting bulkheads and upgraded the fishway inlet structure. The total investment for this project is $2 million.

“A sustainable and reliable water supply is fundamental and is especially important in northern Saskatchewan.”

– David Marit, Water Security Agency

Southwest of Candle Lake, WSA replaced the control structure at the Christopher Lake outlet with a precast concrete structure. This will allow the structure to be operated more safely and efficiently for WSA operations staff and includes public safety fencing and guardrails. The total investment for this project is $800,000. Wrap up activities are progressing.

These projects were identified as a priority as part of the 10-Year Rolling Infrastructure Rehabilitation Plan – part of WSA’s effort to advance priority maintenance projects for the long-term safety and security of citizens of this province. 

WSA is investing more than $42 million in 2024-25 to advance more than 60 key water infrastructure projects with a focus on ensuring Saskatchewan’s infrastructure supports a sustainable, adaptable and reliable water supply. Since 2012, WSA has invested nearly $255M in the province’s water management infrastructure.

by SHCA SHCA

Saskatchewan Building Construction Investment Up 21.2 Per Cent

May’s numbers for investment in building construction from Statistics Canada show that Saskatchewan has seen a 21.2 per cent year-over-year increase in this category in March 2024 over March 2023 (seasonally adjusted), which ranks third in terms of percentage change among the provinces. This follows in the wake of the 19.4 per cent year-over-year increase that was recorded in February 2024 (seasonally adjusted). 

“It is clear that people and businesses are more confident investing in Saskatchewan than ever before,” Trade and Export Development Minister Jeremy Harrison said. “Our construction sector is seeing this growth because of the deliberate efforts we’ve made to create a creative business environment industry can rely on. This unprecedented investment into the province is creating new jobs and opportunities in every corner of our province.”

In March 2024, investment in building construction totaled $392 million in Saskatchewan.

Investment in building construction is calculated based on the total spending value on building construction within the province.

A report released by Statistics Canada earlier in May indicates that the value of building permits in Saskatchewan increased by 15.8 per cent year-over-year for March 2024 compared to March 2023 (seasonally adjusted). 

Private capital investment is projected to reach $14.2 billion in 2024, an increase of 14.4 per cent over 2023. This is the highest anticipated percentage increase in Canada.

by Shantel Lipp Shantel Lipp

A Safe and Prosperous Season

Shantel Lipp - Portrait

This is an exciting time of year to be in our industry. Summer is nearly here, and the push is on to get out and construct all the projects you have been contracted to develop. 

Seeing crews out on worksites doing what it takes to repair or build a road, replace pipes and other infrastructure underground or prepare a site for a future building is undeniable evidence of all that our industry does to support our communities and the provincial economy. 

As I drive around – on roads our members built – I look around to see so much other infrastructure that requires heavy construction to exist: the sidewalk where pedestrians can safely walk; those lots being developed so more houses can be built in a subdivision that will welcome many more families to live in our city in a new neighbourhood that will flourish; those kids playing basketball on a court using materials donated by one of our members; families packed in a half ton that is pulling an RV headed out on the highway to a provincial park to make memories on a family vacation; 

that rail line being used by that train carrying cars of agricultural commodities or manufactured equipment to other parts of the country where they will be used or to reach ports to export to other countries. I hear the planes coming into my city knowing they are going to land on the airport runway. I trust there will be a parking lot where I will park my vehicle when I arrive at my destination. 

We built that. The members of our association are the ones who made sure high quality, durable infrastructure is constructed so other people living in our communities can enjoy a high quality of life. 

This infrastructure makes travel easier and safer. Getting to school and work every day is possible because of the infrastructure that our members build and maintain. It prepares future stages of development so people have places to work and live.

While it is common for our industry to just get the job done and focus on ensuring it gets done well, I think there is value in stopping to consider just how impactful that infrastructure is in our daily lives and how significant it is to a functioning society. 

There is so much for a person to notice and take pride in once we start looking for it. While those in the industry know it, let’s remind others of it too. 

While you are working this summer on whatever project your crew is doing, remind people we built that – whether you are telling the employees at the hotel where you are staying, the restaurant where you eat or the gas station where you fill up. Not only do they get the benefit of this new infrastructure, but indirectly, they also benefit from the money your company is spending in their community as your crew moves in for the duration of the project. That indirect benefit helps to support their jobs and income. 

Telling people which projects we are working on helps others who are not in our industry see that it is real people – not simply dollars and documents – who make infrastructure happen. Reminding other people of exactly what our industry builds and maintains and how that betters the lives of our family, friends and neighbours is an important message to deliver so the value of our industry’s work is recognized and appreciated.

In turn, this helps our message land more impactfully when we meet with governments who rely on us to construct the infrastructure they decide to build. Governments pay attention to the public who vote them into office. Having the public value our contribution to our communities helps reinforce what SHCA says to politicians. 

I hope your summer is filled with solid projects that make a difference to the many people living and working in our province. Here’s to a safe and prosperous season ahead. 

by SHCA SHCA

Highways 6 and 39 Project South of Regina to Resume Construction This Spring

Highways Minister Lori Carr announced an estimated $57-million-project will resume construction this spring to twin segments of Highways 6 and 39 between Regina and southeast of Corinne.

“Work will continue on this important corridor to ultimately enhance the safety and efficiency of tourism, trade and commuter traffic,” Carr said. “Transportation infrastructure projects support our strong and growing export-based economy, which sustains our quality of life in our great province of Saskatchewan.”

The project includes nearly 15km of twinning on two Highway 6 segments:

  • One 7.8km long segment south of Regina between the Bypass and the Highway 306 turnoff; and
  • One 7.1km long segment north of Corinne on Highway 6 to southeast of Corrine on Highway 39.

Nearly 13km of the existing lanes of Highways 6 and 39 from north of Corinne to southeast of Milestone will also be repaved.

The two-year project began in 2023. It resumed in May and is expected to be completed this year, pending weather. Drivers can expect minor delays through work zones with one-way traffic. Flaggers will be present throughout construction hours to help guide the flow of traffic.

The stretch of Highway 6 from Regina to southeast of the junction of Highway 39 near Corinne has an average of more than 3,400 vehicles per day.

“We appreciate the patience and understanding of all motorists during this project’s short-term inconvenience for the long-term benefit to our highway system,” Carr said.

The federal government is contributing more than $27 million toward this project. The Government of Saskatchewan is funding the remaining $30 million.

by SHCA SHCA

WCB Shares 2023 Operating Results

The Saskatchewan Workers’ Compensation Board (WCB)’s 2023 annual report was tabled in the provincial legislature at the end of April. The province’s workplace total injury rate fell to 3.95 per 100 workers. 

“I am thrilled to share that, in 2023, the total injury rate was the lowest in the province’s recorded history,” said WCB chair Gord Dobrowolsky. “This only happened due to the combined efforts of workers, employers, labour and safety associations and safety leaders across the province.”

Under the requirements of The Workers’ Compensation Act, 2013, the WCB remained fully funded with a sufficiency ratio of 135.7 per cent in 2023. This means it has the ability to cover the future costs of all claims in the system.

“Our objective is always to ensure sufficient funds are available to meet required benefit levels and protect against unexpected claim activity or potential fluctuations in economic conditions,” said WCB CEO Phillip Germain. “The process for managing our funded position is based on our approved sufficiency policy. The sufficiency policy establishes a framework of guidelines, measurements and targets to achieve a fully funded status and sets the target range for the sufficiency ratio of between 100 and 140 per cent.”

As part of its annual reporting, the WCB provided financial highlights from its 2023 results, including:

  • The WCB covered 409,158 full-time equivalent workers in 2023, compared to 400,392 in 2022.
  • Claim costs were $223.4 million in 2023, up from $188.1 million in 2022.
  • The WCB’s sufficiency ratio was 135.7 per cent as of year-end 2023, compared to 136.5 per cent* in 2022. (*To reflect the changes in the International Financial Reporting Standards (IFRS), in 2023, the sufficiency ratio has replaced the WCB’s funding percentage. Prior to 2023, the calculation of funding percentage excluded the unrealized gains and losses on investments in the injury fund.)
  • Due to increased payroll, an increased maximum assessable wage rate and increased premium rates, the WCB reported premium revenues of $337.6 million in 2023, up from $304.8 million* in 2022. (*Premium revenues are restated for 2022 to align with the changes in IFRS 17.)
  • The WCB reported investment income of $172.6 million in 2023, compared to an investment loss of $132.1 million in 2022. In 2023, the investment portfolio had a return of 8.2 per cent at market, compared to a loss of 5.5 per cent in 2022. Investment income includes realized income and unrealized gains or losses on investments during the year and can fluctuate significantly year to year to reflect the change in the market value of investments.

The WCB also reported on 2023 advancements in its transformation initiative, the Business Transformation Program.

“Through this $150 million, multi-year initiative, the WCB is engaging customers, partners and WCB staff in its journey to implement the changes that it believes are necessary to meet customers’ expectations now and into the future,” said Germain. “The program touches everything we do at the WCB and how we support our customers by modernizing every aspect of our service delivery models, technological tools, business processes, workplace culture and engagement with partners.”