B.C. construction leaders are joining the Canadian Construction Association (CCA) in pushing the federal government to create an Emergency COVID-19 Construction Cost Relief Program.
CCA is recommending eligible costs be reimbursed up to five per cent of the contract value as a starting point, subject to adjustment, as the duration and full impact of COVID-19 becomes clearer.
“The BC Construction Association is committed to the health and safety of everyone working in the province’s construction sector, so we strongly support the Canadian Construction Association’s call for a federal emergency COVID-19 construction cost reimbursement program,” said Chris Atchison, president of the British Columbia Construction Association (BCCA). “Across B.C., contractors, suppliers and employers are facing a wide range of increased and additional costs to keep their worksites operating and their employees safe.”
Atchison noted just as the province has recognized construction as an essential service, the industry is looking forward to the federal government doing the same by working with the CCA to support the construction sector whose ongoing work is crucial to the economy and its future recovery.
“The program is especially important for British Columbia given that the province is two years into the 10-year Investing in Canada Infrastructure Program, which is seeing the federal government invest roughly $4 billion in B.C. infrastructure in areas such as public transit, green infrastructure and projects in rural and northern communities,” said Atchison.
The Vancouver Regional Construction Association (VRCA) also came out in support of the fund, asking its members to send a letter to their local member of parliament.
“Working in lockstep with a strong national association has never been more important than during this pandemic,” said Fiona Famulak, VRCA president, in a statement. “Our partnership with CCA helps amplify our regional voice to ensure the concerns and challenges of our member companies and their employees are heard by the federal government.”
The association noted the federal government has hundreds of critical projects that are already in progress or need to be maintained. These projects pertain to crucial sectors like defence, security, infrastructure and the administration of justice and government. The associations are asking the federal government to continue with these projects and to tender and award new projects. The VRCA explained that helping construction continue not only keeps people working but positions B.C. for economic recovery.
The VRCA has several requests for government projects to assist the industry including:
- Provide businesses with fair extensions of time and fair compensation for reasonable costs incurred due to the COVID-19 pandemic.
- Compensate businesses for reasonable costs incurred and that are supported by sufficient documentation. For example, costs incurred as a result of demobilization, making a site safe, interruptions of the supply chain, extended rentals, additional overheads during delay and site security.
- Continue existing payment terms with prompt and appropriate approvals to ensure timely release of monies.
Famulak acknowledged that contractors will need to do their part by providing proper notices as required under contracts, keep adequate records of all relevant information, mitigate costs and be transparent and forthcoming in discussions with the Government of Canada regarding the schedule and cost impacts related to the COVID-19 pandemic.
“Our industry is privileged to be an essential services provider in B.C. and has pivoted quickly to put enhanced safety protocols in place in order to continue to operate,” Famulak said. “Those steps come at significant additional cost to the industry that need to be recognized and addressed. The creation of an Emergency COVID-19 Construction Cost Relief Program that is separate and distinct from existing contractual documents and obligations is a practical solution to the COVID-19-related cost burden associated with federally funded infrastructure projects and has the potential, over time, to also be implemented by other levels of government.”
As the industry awaits the government’s response to its request, the BCCA’s COVID-19 virtual hotline has been kept busy with questions about a wide range of topics, including access to sanitizing supplies; contractors facing assignment penalties due to delays caused by delays in shipments; government support for employers facing payment delays and project slowdowns; human resources questions regarding reducing staff/workers; limitations to site inspections; cancelled tenders; project cancellations or holds; supply chain issues; revenue uncertainty; workers unavailable to due self-quarantining; and EI issues.
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