💰 Pay up!

Together with

Good morning! 🏗 Hey, builders, are you trustworthy? Some Canadians aren’t so sure. Recent research shows 14% of Canadians believe building contractors “lie all the time”. If it makes you feel better, 15% don’t trust online journalists either.

Speaking of trust, one of the biggest issues in construction is getting paid in a timely manner. Keep reading to see the latest updates from across the country on prompt payment legislation

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 11:00 PM ET April 10th, 2023.

Markets: A report by TD Bank says home prices are not done falling. According to economist Rishi Sondhi, the average price of a house is likely to drop by 21% in all before the market hits the floor. However, Sondhi noted that this still won’t be enough to wipe out the gains made during the height of the housing market, which peaked in February 2022.

THE BIG STORY

Prompt payment scores some major wins

Getting paid on time is a massive issue in construction. According to a recent survey of hundreds of construction companies in the U.S., only 12% reported being paid on time regularly.

In Canada, there has been a lengthy effort by the industry to legislate timely payment. This March included some major wins.

What happened:

• Manitoba officials introduced amendments to the Builders’ Liens Act that will make prompt payment the law of the land. According to the province, the new legislation will ensure timely construction projects by removing the disruptions caused by non-payment in the supply chain.

• Alberta announced a commitment to extend prompt payment rules to public works projects.

Elsewhere in Canada:

• Ontario, Alberta, Saskatchewan already have prompt payment legislation in effect. Quebec, New Brunswick, Nova Scotia, and Manitoba are in various stages of either implementing or attempting to implement their own prompt payment legislation.

• Despite recommendations for prompt payment during budget consultations, B.C. has not enacted any prompt payment legislation. The BC Construction Association (BCCA) has long called prompt payment the number one issue facing the industry.

BCCA President Chris Atchison recently put it this way: “No amount of infrastructure investment will succeed if we don’t reduce the pressures on BC’s builders. You can’t build the hospitals, the schools, the transit networks, the housing, if you can’t count on getting paid for the work you do.”

Why it matters

Late payment can be devastating. A report from National Trade Contractors Coalition of Canada and the Ontario General Contractors Association outlined some of the biggest impacts:

• Reduced employment in the construction industry.

• Less investment in apprenticeship, greater use of ‘independent operators’.

• Less investment in machinery and equipment and hence lower productivity.

• Higher construction costs because of the need to factor in late payment risk.

• Smaller bidding pools because payment risk forces contractors to limit the amount of work they take on

• An erosion of the level playing field by rewarding those contractors that delay payments without justification while penalizing those contractors who are forced to cope with late payments.

NEED TO KNOW

The week's headlines

🚔 The RCMP’s investigation of violent attacks on workers and equipment at the Coastal GasLink Pipeline project suggests outsiders infiltrated an otherwise peaceful protest movement. Police say “anarchists” from outside B.C. and outside Canada joined the movement and then hijacked the effort.

🏠 In a move to spur more housing construction, Ontario officials are looking to give municipalities more power to expand their settlement boundaries. The province says the proposal would make it quicker and easier to open up more land for housing.

❄️ Two are dead and over 1 million lost power for days last week after a devastating ice storm hit Quebec and Ontario. Freezing rain and high winds brought down trees and damaged power lines. Hydro One in Ontario praised the many contractors who stepped up to help restore service, including Valard Construction and Alectra Utilities.

🍎 Manitoba is looking to the private sector for school construction. Officials say using a P3 model will save money and make work go faster. The province plans to award nine school projects under a single tender. Officials say speed is needed as the population is growing at a fast rate.

🏗️ Granny flats, laneway homes, backyard suites or accessory dwelling units - whatever you want to call them, are booming amidst the ongoing housing crisis. Some homeowners believe the extra units could create more value in their property when it comes time to sell.

TOGETHER WITH CENTRE ELECTRICAL GROUP

10 million+ feet of wire installed and counting

Meet one of the forces behind B.C.’s technology and commercial boom.

Centre Electrical Group has been serving the province’s commercial and industrial sectors with electrical, communications and security system solutions since the late 1990s.

The company has since grown into a contractor with 100+ staff that can design, install, upgrade, and service systems for high-profile, large-scale projects.

Their clients include social media companies, luxury car dealers, animation studios and even the federal government. Contact their team to learn more about what they can offer your project.

PROJECT SPOTLIGHT

A thoughtfully modern neighbour

Office takes gold: Oxford Properties’ nine-storey office complex, 402 Dunsmuir, took home the gold last month at the international Urban Design & Architecture Design Awards. The building was crafted to be a modern neighbour to the historic Holy Rosary Cathedral in Vancouver. The mixed-use office building includes floor-to-ceiling glass and modern amenity spaces, attracting big-name tenants like Amazon with its flexibility and accessibility. The designers were able to cleverly incorporate an existing parkade into the design, reducing the environmental footprint. The project team included B+H Architects. It also successfully achieved LEED Gold Core and Shell certification.

PROJECT UPDATES

Developers are looking to reshape Midtown Toronto with taller towers.

Victoria just approved a 1,500 unit housing project after debate over parking.

Plans have been revealed for Winnipeg’s Indigenous Friendship Centre.

Calgary has broken ground on Stampede Trail.

Blue Jays president reveals strategy behind their $300M stadium overhaul.

WHAT WE’RE TALKING ABOUT

LIST: 💻 16 of the best construction business website designs

READ: ⚒️ Charity gives struggling youth a home in construction.

PHOTO: ⛺ This zero-carbon cabin sure looks cozy.

READ: 🚛 Truckers are also facing massive labour shortages.

VIDEO: ⚽A modular stadium is taking shape in Langley, B.C.

Here’s to a great rest of the week!