SHCA The Interchange - Default background
by Shantel Lipp Shantel Lipp

Inflation

Shantel Lipp

As 2022 continues to move ahead, one word keeps popping up again and again as businesses and households review their finances: inflation.

As costs increase, everyone must find ways to make ends meet. What that means for our industry has been calculated in an economic impact analysis done for the Saskatchewan Heavy Construction Association.

That analysis found that the industry is expected to face a further $426.7 million in new costs. The analysis looks at what that would mean for the profitability of the industry. It finds the industry profits $670 million per year on sales of $9 billion. Subtract $426.7 million in new costs and profits are squeezed to $243.4 million.

Knowing that profits are not distributed uniformly among all companies in the industry, reducing an industry’s profits by more than half would be too difficult for some companies to survive. It would also mean far fewer jobs in the industry as employment numbers could drop by more than half. 

One of those additional costs that our members face is an increase in the price of diesel. That increase in fuel has been difficult for many of our members under the existing contracts they have with the Ministry of Highways. 

You might recall that in July, I said in my President’s Message in The Interchange that we were discussing this situation with the Ministry of Highways. Seeing that the increase in fuel was estimated by the ministry to be around 69 per cent, it was important that we find a way to resolve the issue. 

Earlier this year, the Ministry of Highways presented our association with some proposed adjustments to the fuel escalation clause. 

The ministry had proposed expanding the scope to include additional types of work. It is also looking at the consumption rate and applying the existing consumption rates more broadly in some areas of work. It is looking at better options to address fuel consumption for haul. Then, there is payment. The ministry is using a monthly adjustment to apply interim adjustments in advance of a final calculation.

Our industry has reviewed the proposal and a number of SHCA members provided additional improvements they would like to see beyond what the ministry has proposed.  

All of this should help contractors with their cash flow.

We provided actual figures and examples of how the industry has been impacted by the price of diesel fuel escalating. We asked for compensation for our members that currently provide asphalt concrete products that go into making the binder materials for crushing, micro-
surfacing, paving and more. Then, there are the various types of work that also consume diesel fuel that the ministry didn’t include in its presentation, such as rock excavation and hauling used for dirt excavation. 

We have been working with the ministry on revising the industry consumption rates to reflect more realistic figures. It should be reasonable and fair to both industry and government. 

The result of all that work is that there have been updates that will be included in fall tenders. Look for updates to the specifications for bid requirements and conditions, measurement and payment (which includes details on payment for extra work, partial payments, final payments, and diesel fuel adjustments) and site occupancy, which will be incorporated into all contracts with a tender close date of Sept. 19 or later.

Also, a dating error has been corrected in the Weekly Diesel Fuel Prices document and the payment schedule has been changed to monthly instead of at the completion of each phase of the project. All of this should help contractors with their cash flow. 

Having this situation addressed by the provincial government was important and I am pleased we have been able to make this progress. 

I must say that I have enjoyed getting to know the new Minister of Highways, Jeremy Cockrill, who moved into the role in May. I appreciate the interest he has in getting to know the industry, its pressures and successes as well as its people. 

I appreciate all of you who contributed input so that we could provide the government accurate and meaningful information so your need could be addressed. 

by SHCA SHCA

Saskatchewan WCB Seeking Customer Feedback

Throughout November, the Saskatchewan Workers’ Compensation Board (WCB) will be reaching out to customers across the province to gather feedback to help improve WCB services.

The information provided by customers will be vital in improving the WCB’s services over the short and long term. As customers experience these services from a different perspective, the WCB will be seeking input from injured workers and employers at all touchpoints of their experience.

This information will be used in the development of a customer feedback system that will help the WCB in the future to gather feedback at the most critical points of the customer journey. The WCB will be asking customers about their preferred feedback methods. This information will be used to inform changes to how the WCB gathers feedback from customers. Customer feedback is essential in the WCB’s ability to be able to improve its services for customers. The WCB’s survey partner, Praxis, will contact you by phone or email for this survey between now and Nov. 28.

Please be aware that the WCB will never ask for personal information such as a claim number, bank information, payment status, SIN or any other personal identification or financial information when conducting customer research. 

If you have any questions about whether a call or email was legitimate, please do not hesitate to contact the WCB office at askwcb@wcbsask.com or 1-800-667-7590.

by SHCA SHCA

Province Invests $6 Million in New Gardiner Dam Office

Photo courtesy of Tourism Saskatchewan/Saskatchewanderer

On Nov. 4, Jeremy Cockrill, Minister Responsible for the Water Security Agency (WSA), officially opened a new head office at Gardiner Dam. 

This investment is the first major construction to the office site at Cutbank since Gardiner Dam was built in the 1960s. The new Gardiner Dam facility provides significant upgrades for maintenance, training, monitoring and operation of the province’s most important piece of infrastructure.

“Saskatchewan’s water resources have long been a vital part of building Saskatchewan,” said Cockrill. “Gardiner Dam and Lake Diefenbaker were built to provide water for expanded agricultural production, growing communities and enhanced recreation opportunities; our commitment today is to build on this legacy for the future of our growing province.”

WSA plays pivotal role in supporting Saskatchewan’s Growth Plan for the Next Decade of Growth (2020-30) through its mandate to responsibly and sustainably manage our water resources to expand economic growth, improve quality of life and enhance environmental wellbeing.

“I am proud of the legacy of Gardiner Dam that has for more than five decades been the foundation for generations of growth in Saskatchewan, and I look forward to the next five decades that this commitment with our new dedicated facility represents,” said Cockrill.

“We are excited to see this significant investment from our government in the water management in rural Saskatchewan,” said Ray Orb, president of the Saskatchewan Association of Rural Municipalities. “Lake Diefenbaker and Gardiner Dam are some of the most critical pieces of infrastructure in rural Saskatchewan and it is important to see rural areas around the lake thrive.”

Interim president and CEO for WSA, Shawn Jaques, shares the Minister’s vision for a prosperous Saskatchewan. 

“Water has long been key to Saskatchewan’s success. The Water Security Agency is helping drive our economy by investing in our future and responsibly managing our most precious resource,” said Jaques. 

Opened in 1967, Gardiner Dam is the fifth largest dam of its kind in the world, standing at over 210 feet tall and five kilometres long. More than 60 per cent of Saskatchewan’s population gets their water from Lake Diefenbaker.

by SHCA SHCA

Western Canada Roadbuilders & Heavy Construction Association Conference: REGISTER TODAY!

The WCR&HCA Stronger Together Conference is taking place in beautiful Waikiki at the Hilton Hawaiian Village Waikiki Beach Resort from Feb. 5–9, 2023.

Take a well-deserved time-out from Canadian winter and join hundreds of delegates in paradise in February. Network with peers, hear presentations and insights from industry leaders and take in the beautiful Hawaiian surroundings. This is an event not to miss.

Register today!

SHCA The Interchange - Default background
by SHCA SHCA

Procurement Readiness Forum for Indigenous Business

Registration for the Procurement Readiness Forum for Indigenous Businesses at Dakota Dunes Resort in Whitecap, Sask., is now open.

Click here to register for free.

The Government of Saskatchewan’s Ministry of Trade and Export Development invites Indigenous Businesses from across Saskatchewan to join us on Dec. 1, 2022, for an information session on public procurement. This forum provides Indigenous businesses an opportunity to hear from representatives of provincial, federal and municipal governments and Crown corporations as they share information on their unique procurement processes, how Indigenous suppliers can access opportunities and suggestions toward successful bidding.

This in-person event is the first in a series of information sessions to assist Indigenous businesses with procurement opportunities. Follow-up sessions will be provided via webinar and will focus on specific topics associated with public procurement. Dates and times for virtual information sessions have yet to be determined.

For more information about the event, please contact Kris Lawton at 306-529-7340 or kristopher.lawton@gov.sk.ca

Thursday, December 1, 2022
8:30 AM – 4:30 PM CST

Dakota Dunes Resort

203 Dakota Dunes Way 

Whitecap, SK  S7K 2L2

Click here to register for free.

SHCA The Interchange - Default background
by Shantel Lipp Shantel Lipp

President’s Message

Shantel Lipp

Now that we are in November, the end of 2022 is within sight. The end of a year is a good time to reflect on what has happened and what to expect in the future. 

What I am watching now are two developments that I expect will be more fully explained in the coming year. The first is project carryovers. I’ll be watching to see what impact they will have on the upcoming 2023–24 budget. You will recall that the current budget did not include money for new projects. The province said it was dedicating $453 million in that budget to capital projects, but virtually all the work available from the ministry had already been tendered before the spring tender was out.

Numerous projects were completed for the Ministry of Highways this year, including paving work on Highway 1 west of Moose, Highway 6 south of Naicam and Highway 37 in the Shaunavon and Gull Lake area. Passing lane projects on Highways 7, 12 and part of 16 have wrapped up. There have been numerous resurfacing projects, including ones near North Battleford on Highway 4 and west of Humboldt on Highway 5 as well as south of Kindersley on Highway 21. The fall tender was slightly smaller than is typical, but we understand the ministry will be releasing schedules throughout the winter – projects such as small span bridges, crushing and hauling and trapline jobs in preparation for spring.

Meanwhile, there are highway construction projects continuing at this point. Through the winter, some work can be done, including hauling heavy materials in preparation for next season. As that work moves ahead, I’ll be maintaining my relationship with Highways Minister Jeremy Cockrill, making the case that Saskatchewan must continue to spend on its infrastructure to continue its economic momentum and encourage investment in this province. I’ll be looking to gain information from the ministry that I can share with members. 

I’m also monitoring what the provincial government is calling “historic legislation.” The Saskatchewan First Act was introduced earlier this month to assert the province’s legislative jurisdiction over exploration for non-renewable natural resources as well as developing, conserving and managing non-renewable natural and forestry resources and operating sites and facilities for generating and producing electricity. 

This legislation would create an Economic Impact Assessment Tribunal. Its purpose would be for “conducting economic impact assessments in relation to federal initiatives.” The members of the tribunal would be appointed by the Lieutenant Governor, who could refer to the tribunal any federal initiative that could cause economic harm to Saskatchewan. 

The tribunal would complete an assessment and report its findings and recommendations to the minister. Those recommendations could be about the nature of the economic impact on projects, operations, activities, industries, businesses and residents in the province. It could include steps to be taken to minimize the impact as well as unintended consequences. 

While there has been plenty of discussion about friction in the relationship between the provincial and federal governments around policies such as the carbon tax, The Saskatchewan First Act is still new and many are in the process of reviewing it, including me.

You may recall a white paper, Drawing the Line: Defending Saskatchewan’s Economic Autonomy, released in October that provided some insight into the government’s introduction of this legislation. In that paper, it is stated the Government of Saskatchewan is exploring all its options and has an objective to protect this province’s economic future so that natural resources can continue to be extracted and developed responsibly, trade corridors can be expanded to provide the world what it needs and the residents and businesses are protected from “harmful” federal policies. 

SHCA has an interest in this province’s trade corridors and continues to discuss this matter with the provincial government, so I will be interested to know how this legislation and these objectives could impact our members. I’d also be interested to know what you think of this white paper and the legislation that has been introduced. 

by SHCA SHCA

Saskatchewan Chamber of Commerce Responds to Government of Saskatchewan Report on Economic Autonomy

On Oct. 11, 2022, the Government of Saskatchewan released a paper titled Drawing the Line: Defending Saskatchewan’s Economic Autonomy during an event at the Battlefords and District Chamber of Commerce. This document outlines notable costs to Saskatchewan’s economy – $111 billion over 12 years – due to nine federal climate change policies, with direct compliance costs being absorbed by industry and households.
 
“Saskatchewan’s role as a global leader in producing sustainable food, fuel and fertilizer is dependent on the province fully leveraging its rich natural resources, a feat that is challenging within the current policies and regulations,” said Prabha Ramaswamy, CEO of the Saskatchewan Chamber of Commerce (SCC). “Action on climate and environment are critical, although it is imperative to consider the sustainability of Saskatchewan’s economy when making these decisions.”
 
For Saskatchewan to continue its role as a world leader, an appropriate transition process to achieving net-zero is paramount.
 
The release of this report also signals the importance of ongoing dialogue between the federal and provincial governments. Transparency and collaboration are crucial to minimize consequences that emerge from the differences in the governments’ approaches to environmental stewardship.
 
“Our business community strongly believes that the relationship between the provincial and federal government needs to be collaborative. We must consider provincial differences and what drives our local economy,” said Ramaswamy. “The SCC emphasizes that consultations and transparency through formal mechanisms are pivotal for the development of policies and implementation of action on environment and climate.”

by SHCA SHCA

More than $20 Million Investment into Improving Highway 55 in Northeast Saskatchewan Complete

A highway project aimed to ensure the safe and reliable movement of people and goods is complete north of Carrot River on Highway 55.

This highway is an important connector for Indigenous communities like Red Earth and Shoal Lake Cree Nations, as well as regional businesses and the forest industry. 

The 50/50 cost-shared highway improvement project includes surfacing of almost 38 kilometres (km) of Highway 55 as well as 30 new culverts. The new upgraded surface of Highway 55 runs approximately 1.2 km west of the junction with Highway 123 to about 37 km east of the same junction.

During high precipitation years, the water encroached the shoulders of Highway 55. The additional culverts and widening of the road will provide improved drainage to reduce the risk of flooding in the future. 

“Protecting critical infrastructure is a priority for our government. Highway 55 is an important transportation link for residents and the forestry sector,” said Highways Minster Jeremy Cockrill. “This represents fulfillment of a long-standing need and a commitment to upgrade this critical route to primary weight.”

The area has been prone to flooding and the mitigation measures taken will improve access. The highway is also being upgraded to primary weight to ensure the reliability of the movement of goods.

Venture Construction of Martensville is the general contractor of the project with Clunie Consulting of Prince Albert acting as the consulting engineer.

by SHCA SHCA

Highway 1 Bridge Replacement Project Wrapping Up Near Swift Current

An $18 million dollar bridge replacement project east of Swift Current is nearing completion. The multi-year construction project included two new overpasses, one on the westbound and one on the eastbound lanes on Highway 1 over the Canadian Pacific Railway.

“More than 4,000 vehicles use the Trans-Canada Highway east of Swift Current each and every day, making it an important transportation route, which is used regularly by commuters, the local agriculture sector, oil and gas sectors as well many transport trucks,” Mental Health and Addictions, Seniors, and Rural and Remote Health Minister and Swift Current MLA Everett Hindley said on behalf of Highways Minister Jeremy Cockrill. “This is an important project for our region as it will extend the life of these bridges for many years to come.”

The project includes the full replacement of the existing overpass structure on the eastbound lanes and the rehabilitation of the bridge supporting the westbound lanes. Regina-based Graham Construction is the general contractor.

The new bridges will have a lifespan of approximately 75 years and are replacing two older ones that were built more than 60 years ago.

Construction on the westbound overpass began in January 2021 with road work in August. Construction on the eastbound began in April of this year and will be complete by the end of the month.

“We would like to thank drivers for their attention and their patience during the construction period,” Hindley said.

Drivers are reminded to observe posted speed limits in work zones and slow to 60 km/hr when passing highway workers and equipment.