🏗️ Crane crisis

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⏰ Today’s read: 4 ½ minutes

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 8:00PM ET February 5th, 2024.

Economy: The latest data from Statistics Canada shows that residential building construction costs increased 0.9% in the fourth quarter, following a 1.2% increase in the previous quarter. Non-residential building construction costs rose 0.7% in the fourth quarter, following a 1.3% increase in the previous quarter. The deceleration observed in the fourth quarter continued the 2023 trend of abating price pressure in both residential and non-residential building construction costs.

THE BIG STORY

Crane safety is a growing issue

A pair of crane failures this month in B.C. have once again thrust the issue of crane safety into the spotlight. Just three years ago, the province also witnessed one of the deadliest crane collapses in Canadian history. 

Here are just a few concerning incidents from recent years: 

• WorkSafe BC issued a stop-work order after part of a crane involved with the dismantling of a tower crane failed and was left hanging over Lougheed Highway.

• A crane has collapsed at a construction site in Surrey, B.C. The arm of the crane appeared to break and fall into the area where a high rise was being built.

• In 2021, a crane collapsed at a site in Kelowna, B.C., killing five. WorkSafeBC completed its investigation into the incident last year but will not be releasing its findings as the RCMP’s criminal investigation was still underway. 

• Just days before the Kelowna collapse, a crane above Toronto’s L Tower condo building came crashing down above its roof. 

A widespread problem: Following several other collapses in Ontario, an enforcement blitz in 2020 yielded 118 work-stop orders. The Ministry of Labour released a report calling for changes, including notification requirements, better record keeping, clarifying the role of engineers, updating standards, introducing new training requirements for crane operators and more. 

More calls for reform: After the two recent collapses in B.C., the union representing hundreds of the province’s crane operators noted the industry has no real regulation, mandatory training or contractor licensing — things they have spent decades asking for. 

Safety above everything: Safety is more important than profit, infrastructure, economic contribution. It is everything. Each worker should come home safe. Period. Solving the root cause of safety issues is crucial. This approach protects employees and boosts the industry’s image, attracting future workers and earning public trust.

TOGETHER WITH FIRST WEST CAPITAL

What is a construction business worth?

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NEED TO KNOW

The week's headlines

📉 Residential development projects across the country are increasingly being pushed into receivership. According to the Canadian Press, elevated interest rates, construction costs and delays, and a slower real estate market are all contributing to the rising frequency of projects coming under financial stress.

🏠 The federal government is extending its ban on foreign home purchasing in Canada. First introduced in 2022, the rule will now run until the beginning of 2027. It bans foreign nationals and commercial enterprises from buying residential property in Canada, with exceptions for some international students, refugee claimants and temporary workers.

🏗️ PCL Construction Management has entered an $898 million agreement to design and build the Prince Albert Victoria Hospital in Saskatchewan. The agreement is inclusive of the design and early works agreement awarded through a public procurement to PCL in December 2022. 

🚌 Toronto Mayor Olivia Chow presented her 2024 draft budget on Thursday, which includes total funding for the construction of the $67.9 million Scarborough Busway.

PROJECT SPOTLIGHT

A Whole New Vic

Designed by Diamond Schmitt/LemayMichaud, the New Vic transforms the historic Royal Victoria Hospital site in Montreal into a place for helping to heal the planet as well as the new home of Sustainability Systems and Public Policy at McGill Univesity. The design features terraced volumes that follow the sloping topography and provide lookouts to the city beyond. The project was recognized with a 2023 Award of Excellence from Canadian Architect.

PROJECT UPDATES

Spuzzum First Nation proposes new ski resort for B.C. 

TTC to start major track replacement work this month

Construction to start on Stratroy fire station

Shovels to break ground on Bancroft library complex 

Trans Mountain working to resolve ‘technical issues’ 

Calgary event centre work to begin in 2024

$200M Calgary airport work begins in April 

WHAT WE’RE TALKING ABOUT

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Here’s to a great rest of the week!