Canadian Construction Association pushing feds for cost relief fund

stock image stressed worker

Ontario Construction News staff writer

The Canadian Construction Association (CCA) wants thousands of people to email their Members of Parliament asking them to create an Emergency COVID-19 Construction Cost Reimbursement Program.

“Complete the digital form with your name, address and email address and send the message to your MP,” Van Buren wrote in a letter to members. “It couldn’t be easier. And it doesn’t matter if you are affiliated in any way with the CCA. Your voice will count!”

CCA’s digital form

She says the campaign will only be successful “if we can get thousands of people from every riding in the country to participate and send messages digitally to their MPs.”

Construction operations have been impacted by supply chain disruptions, staff shortages, increased cost of materials, as well as governmental ordinances requiring partial or complete work stoppages which vary across provinces. The industry needs fair consideration from federal, provincial and municipal governments when these unprecedented circumstances have an impact on contractual agreements,” Van Buren said in her message.

“We know the Government of Canada understands that the impact of COVID-19 on construction contracts and contractors is unprecedented. This is an extraordinary situation and the construction industry is asking governments at all levels and private owners for extraordinary consideration to relieve some of these impacts to help ensure that the industry has the capacity and can mobilize quickly to build the Canada of the future.

The CCA is also asking the federal government for a “clear statement” of policy that addresses how it will treat delays, project disruptions and other COVID-19 related costs.

The CCA has about 20,000 member firms employing over 1.5 million Canadians and representing seven per cent of Canada’s GDP.

Van Buren says now is the time for the industry to use its a strong voice.

The CCA recommends that eligible costs be reimbursed by the government up to 5 per cent of the contract value as a starting point, subject to the program being adjusted as the duration and full impact of COVID-19 become clear over time.

“Those costs under the proposed Emergency COVID-19 Construction Cost Reimbursement Program would include those incurred after March 15 for expenses including:

  • additional health and safety costs
  • site security and maintenance costs
  • general conditions
  • extra insurance and bonding costs
  • demobilization costs
  • costs incurred to maintain reasonable delivery dates for project materials and equipment
  • additional costs to make up lost and reduced productivity
  • extended project and site rentals
  • project-related overhead costs, and
  • reasonable remobilization costs.


Please enter your comment!
Please enter your name here

I accept the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.