Fuel price relief in the works for Manitoba road crews

WINNIPEG—The Manitoba Heavy Construction Association (MHCA) says the province is looking for ways to ease the impact high fuel costs are having on the construction sector.

“Our meeting with senior officials at (Manitoba Transportation and Infrastructure) made it clear that they see the additional cost burden on industry – both immediately in snow clearing works and in the coming work, such as flood control and road construction – must be addressed,” MHCA president Chris Lorenc told a meeting of the association’s executive committee earlier this month. “We are expecting to see very shortly MTI’s proposal, that will adjust the price-escalation clauses in large construction contracts in the coming season, but also look at retroactive cost-adjustments to snow clearing work.”

The association noted the price of diesel fuel has spiked significantly since tenders on bid-hourly work (snow, flood control) were issued in the late fall and mid-winter, largely due to the fallout of Russia’s invasion of Ukraine on Feb. 24.

Lorenc told the committee MTI’s draft proposal is being sent to MHCA’s fuel price sub-committee members for comment and suggestions. The MHCA has been informed the City of Winnipeg is also looking at fuel price impacts, but has not yet engaged industry in discussions.