OTTAWA — As the COVID-19 pandemic and crisis continues to unfold across Canada, the Mechanical Contractors Association of Canada (MCAC) has indicated its support of public health agencies in their efforts and measures to limit the spread of COVID-19.
As a national association of close to 1,000 contractor firms, the safety of members and their employees remains paramount, and MCAC understands the importance of measures being put in place to protect all Canadians. At the same time, the Association noted the importance to support businesses and employees as construction faces shutdowns and delays across Canada.
“As with all industries across Canada, the COVID-19 pandemic is having a disruptive effect on Canada’s mechanical contracting sector, but we are encouraged the federal government is taking steps to support Canadians and businesses impacted by this unique situation,” said Dave Holek, President and Chair of MCAC.
“The announced programs to provide direct support to employees and additional liquidity for small and medium-sized businesses have been great first steps in dealing with this crisis. Our hope is the government understands how this crisis will negatively impact mechanical contractors in both the short and long-term, and put the appropriate measures in place to support our industry.”
Many construction contracts do not allow for remuneration to occur if a project is delayed due to unforeseen conditions or any cause beyond the control of the contractor. The result is that many contractors will find themselves in difficult circumstances as it relates to cash flow, particularly if payments have been made or are due to suppliers and other parties and stakeholders in the construction project supply chain.
“For our MCAC members on existing projects, or those unable to take on projects due to the COVID-19 pandemic, these closures or delays can have significant or even disastrous consequences for a business,” added Holek. “Because payment through the construction supply chain could be halted until such time that work can begin again, we would encourage the government to find means to support those contractors affected by stoppages of work.”
MCAC will continue to enforce that contractors across Canada will be vital for rebuilding the Canadian economy, particularly as the dust settles on the COVID-19 pandemic. Because of this important role, it is essential contractors have the cash flow and the capacity to respond to the needs of Canadians when this crisis comes to an end.