by SHCA SHCA

Major Infrastructure Stimulus Plan Announced by Saskatchewan Government

A two-year capital plan, worth $7.5 billion, aimed at building a strong Saskatchewan and stimulating the economic recovery from the impact COVID-19 was announced earlier this month by the provincial government.

“Over the next two years, our government will invest $7.5 billion dollars in schools, hospitals, highways, Crown utility projects, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan,” Premier Scott Moe said. “This is a $2 billion economic booster-shot over and above the $5.5 billion our government had already planned to invest in capital projects over the next two years and will be an important step in our province’s economic recovery.”

Read the full story from CKRM.

by Shantel Lipp Shantel Lipp

Great News, Finally

“Over the next two years, our government will invest $7.5 billion dollars in … highways, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan.” – Premier Scott Moe, May 2020

There’s no other way to say it – this is great news for our industry, for our members and for the Saskatchewan economy.

Prior to the COVID-19 pandemic, the provincial economy was already facing headwinds through depressed resource prices, anti-pipeline policies and rail blockades. The announcement will mean a big boost in the arm not only to the construction industry but to the province.

The provincial government heard what industry has been saying and stepped up in a big way.

The road to economic recovery here and across the country starts with our industry. Premier Moe believes that, too. The money being spent now will create a legacy serving the economy for the next 50 years.

The funding represents a $2 billion increase over the government’s existing capital plan. The resulting projects are expected to support 10,000 jobs. More than $300 million of the funds are intended for highway projects, including surface upgrades and passing lanes, with almost $50 million dedicated to upgrades to municipal roads and airports.

Without question, this stimulus funding will balance the need for smaller, short-term projects to spark the economy and get people back to work with longer-term, large-scale projects that leverage multiple sectors over the next several years.

Approximately $1.37 billion of the new funding is committed for large infrastructure projects to be announced in the future.

We’re hopeful this financial support will aid our members who have been struggling and keep them busy for the foreseeable future.

Last month, I encouraged our members to be ready. Now is our time to lead this province and kickstart our economy. Be safe!

by SHCA SHCA

Notice of Sale and Investment Solicitation Process

JMB Crushing Systems Inc.

On May 1, 2020, JMB Crushing Systems Inc. and 2161889 Alberta Ltd. (Collectively “JMB”) were granted a stay of proceedings (the “Initial Order”) from the Alberta Court of Queen’s Bench issued under the Companies’ Creditors Arrangement Act (the “CCAA”). FTI Consulting Canada Inc. (“FTI”) has been appointed Monitor.

In connection with the CCAA proceedings, the Court has authorized the implementation of a sale and investment solicitation process (the “SISP”). As part of the SISP, Sequeira Partners has been engaged as the Sale Advisor and is soliciting proposals from qualified interested parties.

For over 30 years, JMB has been producing and supplying aggregates for leading oil field companies, road construction, and industrial projects throughout Alberta. The business has access to numerous gravel pits and maintains a significant inventory of aggregate for immediate distribution with one of the largest reserves of aggregates in Alberta.

All qualified interested parties will be provided with an opportunity to participate in the SISP. The SISP is intended to solicit interest in the sale of, or investment in, JMB or all or any part of JMB’s property, assets and undertakings and its business operations on an as is where is basis. The SISP Process is a two-phased process with the Phase 1 bid deadline set for June 19, 2020. The completion of any proposal shall be subject to the approval of the Court.

Copies of court ordered documents and the SISP may be obtained from the Monitor’s website at cfcanada.fticonsulting.com/jmb/

Those interested in participating in the SISP can contact the Sale Advisor to receive additional information at sequeirapartners.com/JMB , jmb@sequeirapartners.com or 780-784-0124.

by SHCA SHCA

“Status Quo” Budget Could Spell Doom for Industry

The 2019-20 budget estimate tabled in March by the Saskatchewan Ministry of Highways of Infrastructure provided a familiar refrain.

The Saskatchewan Heavy Construction Association didn’t expect any surprises or a significant shift in infrastructure spending for this upcoming season. That’s exactly what was delivered, which could present positive and dramatically negative outcomes for the industry in the near future.

“This was a status quo budget,” said Shantel Lipp, SHCA president. “Taking into account the challenges the government is facing with Covid-19, we realize the budget could have been a lot worse.”

“(The government) should be commended for sticking to its Growth Plan and trying to advance it despite these challenges and circumstances.”

The overall budget for the Ministry of Highways and Infrastructure for 2019-20 is $648 million, a drop of more than $50 million from last year’s budget. However, the $358 million set aside for capital expenditures slightly increased from 2018-19.

The Urban Highway Connectors program also saw a slight bump from $6.7 million to $7.3 million. The Rural Integrated Roads for Growth program received $1-million boost in funding and the Community Airport Partnership saw an increase of $150,000.

“In terms of municipal spending, this is a positive budget,” Lipp said.
The government remained dedicated to safety by providing $13 million to enhance intersection safety and $7 million in safety improvements to alleviate frequency and severity of collisions. This is the second year of the government’s five-year, $100-million commitment to highway safety.

Where this budget could spell doom for Saskatchewan contractors is related to the major projects for the upcoming construction season. The major projects that were announced this year are carried over from the previous year, meaning there is no new work available for what is already an extremely competitive market.
Lipp noted that neighbouring provinces Alberta and Manitoba are struggling with member retention. She said it’s not because their respective associations are not delivering the services required. It’s because the investment in infrastructure isn’t there.

“The amount of infrastructure that is being built hasn’t increased,” Lipp said. “The challenge for our industry is not the dollars being spent but the number of kilometres the industry has the capability to build. If there is no commitment to increasing the number of kilometres that the government is going to build or maintain, we’re going to see more companies go out of business.”

A dried-up market forced several Saskatchewan-based contractors to cease operations in 2019. Lipp expects that trend to continue this year.

“Competition levels are going to be incredible this year because everybody is looking for work and everybody is struggling to find work,” she said. “Any prolonged delays in building is only going to cost taxpayers more and going to deplete the capacity of the industry.”

For more information:
Shantel Lipp
President, Saskatchewan Heavy Construction Association
slipp@saskheavy.ca
306-586-1821

by SHCA SHCA

Federal/Provincial COVID-19 Support Programs

At the beginning of April, Federal Finance Minister Bill Morneau, Minister of Small Business Mary Ng and Minister of Innovation Navdeep Bains announced details relating to the Canada Emergency Wage Subsidy and provided updates on other previously announced programs.

The Emergency Wage Subsidy will cover 75 per cent of salaries for qualifying businesses for up to three months retroactive to March 15, 2020. Charities, not for profits and businesses (big and small) will all be eligible IF their revenues drop by 30 per cent when compared to the same time period in 2019. For organizations that do not meet the 30 per cent threshold, they may qualify for the previously announced Temporary Wage Subsidy of 10 per cent that is paid from March 18 to June 20, 2020.

Also earlier in April, Manitoba increased security for renters by putting a freeze on rent increases and postponing eviction hearings. As well, they released their list of essential services.

Please view the updated infographic below for an overview of all programs released to date (including links to the appropriate government websites).

by SHCA SHCA

Sask. WCB Offers Relief Measures for Employers

The Saskatchewan Workers’ Compensation Board (WCB) is introducing additional relief measures for employers who are unable to pay their WCB premium payments. Effective April 1 until June 30, 2020, the WCB will waive penalties and interest charges for late premium payments.

The Government of Saskatchewan announced various measures to support provincial business owners during the COVID-19 crisis. To provide further relief for Saskatchewan employers, the WCB is:

  • Forgiving interest and penalties for late payments on 2020 premiums applied in the month of March.
  • Prioritizing employer payroll revisions to help employers reduce their premiums.
  • Suspending payroll audits until further notice except in situations where an employer may be eligible for a refund.

“We are dealing with extraordinary circumstances throughout the province of Saskatchewan. Recognizing the economic challenges many employers are facing, we are introducing these relief measures for covered employers while balancing our financial obligations,” said the WCB’s CEO Phil Germain. “By giving employers extra time to submit their payments without facing any penalties, they will be able to communicate their revised payroll estimates to the WCB and determine payment plan options.”

Employers who have reduced their workforce are encouraged to submit revisions to their 2020 assessable payroll estimates, which the WCB will use to recalculate their required premiums. Employers who have concerns about paying their 2020 premiums should contact the WCB to discuss their options.

Effective immediately, to ensure employers can release payment to their contractors promptly during the COVID-19 crisis, clearance letters will be available for employers that meet specific criteria, even in cases where the contractor’s WCB account has not been paid. Employers will not be liable for any outstanding WCB premiums the contractor owes.

Under the WCB’s legislation, The Workers’ Compensation Act, 2013, the WCB is required to be fully funded at all times.

The WCB will continue to monitor this situation and make decisions that balance the needs of employers and injured workers.

Learn more on the WCB’s website.