The Government of Saskatchewan returned to its standard procurement processes and documentation, effective June 9, 2025. This means the changes put in place in response to U.S. tariffs are no longer in effect. As of June 9, procurements no longer have additional clauses, declarations or rated criteria and reporting the use of U.S. products for capital projects in progress is not proceeding.
For procurements that are open as of June 9, 2025, an addendum may be added to remove the U.S. declaration form and rated criteria requirements. Procurements that are closed as of June 9, 2025, will be awarded based on the requirements that existed when the competition closed.
Government will continue to focus on delivering capital projects while supporting industry efforts to source local products. These changes will reduce administrative burdens while continuing to make efforts to support Saskatchewan and Canadian businesses.
Just because we’ve always done things one way doesn’t mean we shouldn’t consider alternatives.
That was the message from Glen Arthur, alternative delivery manager, Western Canada, for Kiewit Infrastructure Markets & Strategies in his presentation about procurement at the Saskatchewan Heavy Construction Association (SHCA) Infrastructure Summit and Trade Show, held in Regina late in 2024. Arthur explained progressive delivery models, which are an alternative to traditional procurement.
Progressive delivery projects involve collaborative teams where the client, engineer and contractor are integrated to collectively make decisions regarding projects, rather than the contractor and project designer working in silos. Arthur says progressive models deliver solutions for projects with complex design and phasing – with long lead times for materials – that are high risk, require in-depth research, involve multiple stakeholders, have local subcontractors and are time and budget sensitive.
Progressive delivery combines a project’s design and build stages. Instead of a transitive model where progress is passed from design to construction, this approach engages all parties from Day One to create collaborative solutions for projects and clients. Primarily originating in Australia, this model has now been used around the world, delivering approximately $90 billion of work worldwide.
“One of the problems we are seeing on large projects is that they are sometimes late and over budget – this is becoming a problem,” said Arthur, who points out that using a collaborative progressive delivery model may solve these problems. “You have a more efficient team, a more efficient timeline and all parties are engaged from Day One to create collaborative solutions.
Also, because the team is all sitting around the table together, you can discuss innovation – something you can’t do when you don’t work as a team. I believe bringing more innovation to projects will be one of the biggest advantages of this model over time.”
Arthur says this model is effective when a project has six main characteristics:
The project has risks that can’t be defined before tender
The cost of transferring risks is prohibitive
A collective risk-management approach will produce better outcomes
The owner can positively influence project outcomes by staying engaged
There is significant pressure to get started quickly
Traditional delivery models have produced poor outcomes on past projects, even resulting in legal or mediation activities
The key, Arthur says, is early stakeholder and local contractor engagement, and client collaboration. One example of this model is the Waaban Crossing in Kingston, Ont., a project that was awarded the 2020 Infrastructure Innovation Award by the Ontario Road Builders’ Association. Arthur says the City of Kingston had only $180 million for this project and knew it needed creative solutions to stay within its budget.
“Early collaboration between the integrated project delivery parties facilitated development of a constructible solution within the city’s budget,” said Arthur. “Key was bringing the steel supplier to the table early in the process since that was going a big part of procurement.”
Owner advantages
Arthur stresses one of the biggest advantages of this model is cost overruns were reduced by 50 per cent. Other advantages for the owner included:
Faster and less expensive procurement process
Significantly less spending on up-front advisers
No stipend costs
Early cost and schedule certainty
Reduced claims
All parties aligned in “best for project” decisions
Improved relationships and partnership between private and public sectors
Overall fastest delivery from project inception to shovels in the ground
Fewer boundaries to limit innovation
Contractor designer advantages
Advantages for the contractor and designer included:
Alignment of interests between all project parties
Constructability built into design
All parties aligned in “best for project” decisions
Direct collaboration with client
True collaboration leading to innovative solutions
Real-time stakeholder feedback
Canadian success story – Northwest Territories Tłı̨chǫ All-Season Road
Arthur stresses that good partnerships lead to innovation and success, and one of the best examples of a great partnership that used the progressive delivery model is Tłı̨chǫ All-Season Road, built in the Northwest Territories.
This 97-kilometre, all-season gravel Highway 3 links the remote northern community of Whatì with its neighbours in the Northwest Territories. It is the first P3 project in North America with an Indigenous government having an equity stake. The project is also notable for its unique approach to handling long-term risks related to climate change.
“This project had challenging terrain – muskeg, permafrost, extreme temperatures and it is just below the tree line,” said Arthur. “There’s sand, gravel, rock, wildlife, and you are working with traditions such as traplines and culturally important sites.”
The Government of the Northwest Territories worked in partnership with the Tłı̨chǫ Government to advance the project, which was funded jointly by the Government of Canada (25 per cent) and the Government of the Northwest Territories (75 per cent). The project involved replacing the southern section of an existing winter road so it would adapt to the impacts of climate change, provide uninterrupted access to Whatì and increase the winter road access to the communities of Gamètì and Wekweètì.
All-weather access reduces the cost of living for the region, enhances residents’ quality-of-life through increased social opportunities and will attract further interest from industry interested in exploration and development of natural resources.
The project is a 28-year, performance-based agreement to design, build, finance, operate and maintain this 97-km, all-season gravel highway, replacing a winter-only ice road. The owner of this project is the Government of Northwest Territories, and the capital ceiling was $200 million.
The model was Design-Build-Finance-Operate-Maintain (DBFOM):
Construction began in fall 2019 with a target date for substantial completion of Nov. 30, 2021, but the project finished a year ahead of schedule.
Arthur says one of the biggest advantages of the project is construction and maintenance meant significant employment and training opportunities for Tłı̨chǫ residents, supporting the development of a strong northern workforce. Fifty-five per cent of the labour was local, and many workers transitioned from construction to work on the ongoing maintenance of the road.
“This progressive model exceeded all requirements and expectations that the client had of us,” Arthur said.
Paving the way for Saskatchewan’s construction future
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This was an election year for our province, and for the Saskatchewan Heavy Construction Association (SHCA), it’s an opportunity. Elections are a chance to draw attention to significant issues in Saskatchewan’s communities and province. Candidates are busy convincing voters to choose them, and voters are paying attention to decide who to support.
It’s an ideal time to have matters important to the construction industry seriously considered by both. The SHCA board wants all members to know the issues it advocated for during the election campaign and to help add their voices to its calls for change.
There were three primary issues impacting our industry that the SHCA focused on during the lead-up to the 2024 provincial and municipal elections. These issues were chosen by the SHCA’s board because they have the most significant impact on the financial certainty of the industry.
They are:
Budget planning and procurement
Inflation
Labour
What members should know
Before these issues are explained, it’s important for members to understand why the SHCA was active during the election campaign. The SHCA is always working to secure improvements for the construction industry. Members may not see a win every time the SHCA engages with the government, but the SHCA always grows stronger as an association through the effort and collaboration it takes to raise and press an issue. By working together, all members benefit.
Voters should care about the issues raised by the SHCA because the taxes they pay go toward building and maintaining infrastructure. Those taxes should be spent in ways that enhance their quality of life.
The SHCA raised these issues to benefit its members, and also to better the province and the quality of life experienced by those living and working in its communities. That focus helps the industry maintain the respect and appreciation of the public, who politicians must pay attention to if they are to win votes. Addressing these issues strengthens not only the industry, but also contributes to a healthier economy and a growing province that can afford to maintain and improve the quality of life for its residents.
Why voters should care
Voters should care about the issues raised by the SHCA because the taxes they pay go toward building and maintaining infrastructure. Those taxes should be spent in ways that enhance their quality of life.
Ask any voter who lives on a pothole-riddled street if improving that road is worth the local improvement tax they pay. Talk to the Regina resident who uses a filtration system on their tap water because they still have lead pipes, and ask whether replacing those pipes is a good use of public funds. Good underground infrastructure ensures clean drinking water. We saw how quickly underground pipes became a political issue for the City of Calgary this year, and more recently, Montreal faced similar challenges.
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Taxpayers should also consider what it means when projects are deferred. Taxes will rise to cover them in the future, and inflation has already driven up project costs.
Construction projects such as new libraries and pools often get attention. The federal and provincial governments partially fund these projects, but unlike good roads and water infrastructure, they become a continuing expense for the municipality because they need ongoing maintenance. Meanwhile, residents wait for improvements to the infrastructure needed to meet their basic needs.
Understanding the issues
All three of these issues – budget planning and procurement, inflation and labour – are interconnected.
Budget planning and procurement
Multi-year budget commitments have been a longstanding request from the industry to the provincial government. Budget assurances allow members to better plan the resources required to complete projects. Year-to-year budgeting creates uncertainty, making it difficult for members to invest in equipment, retain quality employees or hire and train new staff. This drives them to consider out-of-province projects that don’t strengthen Saskatchewan’s economy.
Manitoba and Alberta both follow long-term budget planning cycles. Saskatchewan needs to take a close look at what they’re doing right. A five-year budget cycle would be ideal, but even allowing contractors to carry over work from one year to the next would help. Manitoba already allows this, providing contractors with some certainty of spring work.
Supporting the heavy construction industry means voters get what they want, and candidates benefit from the positive outcomes the SHCA and its members can help create.
The time is right for Saskatchewan to closely look at what other provinces are doing. The province has made a commitment to work with Manitoba and Alberta to improve the transportation system and to strengthen the economic corridors that support supply chains when it signed a memorandum of understanding (MOU) with those two provinces in April 2023.
Planning, investment and partnership opportunities with the private sector as well as harmonizing the regulatory environment are some of the key priorities for the three provinces. So too is advocating for federal investment into economic corridors. So far, not much progress has been made on these priorities because elections were held in Alberta and Manitoba after the MOU signing. Now, Saskatchewan has had its own election. The time is right to get serious about this.
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Then there is the release and awarding of work. Contractors need work to be released in September and awarded no later than the end of November for the next construction season. Delays in releasing and awarding contracts adds pressure during the building season.
The SHCA knows of no reason it should now take minimum of five days to award a job that used to be awarded the same day the bids were opened. Most construction projects are standard and are driven by data that SaskBuilds already has. The government has created unnecessary layers of bureaucracy with no advantage to business.
Inflation
Looking at budget planning through the lens of inflation, operational expenses for SHCA members have risen as inflation drives up costs for fuel, materials and labour. Yet, the provincial government’s base capital budget hasn’t been adjusted to reflect today’s realities.
Inflation impacts budget planning when the government fails to properly fund its capital plan to account for the industry’s increased operational costs. This results in fewer projects being tendered, leading to fiercer competition so governments think they are getting sweet deals while it creates increased financial uncertainty for contractors.
Labour
Labour is another critical issue. Training, recruitment and retention within the construction industry are heavily influenced by government decisions. The provincial government needs to acknowledge heavy civil construction as a priority to change how young people view the industry, encouraging them to see it as a career and not just a seasonal job. Reliable funding enables heavy construction employers to build and retain a stable workforce. When funding is unreliable, it leads to a transient workforce.
Manitoba and Alberta both follow long-term budget planning cycles. Saskatchewan needs to take a close look at what they’re doing right.
Saskatchewan also lags in recognizing civil construction as an apprenticeable trade, creating a perception that employment in the industry is less desirable than in other construction sectors. This is despite heavy construction being one of the better-paying sectors in the province, second only to mining. The government could also implement aptitude testing during high school to help identify students interested in a construction career.
Why should elected officials care?
The SHCA expects many of its members will encounter elected officials, and it is providing this information to share with them. It is in the government’s interest to support these calls by the industry. Elected officials need to understand how addressing these issues impacts not only the construction industry, but also the economic growth and quality of life in Saskatchewan. By supporting these changes, they contribute to a stronger tax base through infrastructure development that drives growth and generates revenue.
The construction industry enhances the quality of life for residents through the work the SHCA and its members do. Elected officials should recognize that a partnership with the construction industry will help them deliver on voters’ priorities. People want governments – especially municipal governments – to get back to basics: Provide good roads, clean drinking water and efficient and dependable services such as snow removal and garbage pick-up. All those examples are impacted by the work done by SHCA members.
Supporting the heavy construction industry means voters get what they want, and elected officials benefit from the positive outcomes the SHCA and its members can help create.
