💰 Relax the tax

Together with

Good morning! ☕Take a deep sip of your coffee. It just might create more sustainable buildings. Australian researchers found that spent coffee grounds can boost concrete strength by 30%. Delicious!

In this issue:

💰 Tax reform pressure grows

⚡ Edmonton’s first net-zero energy building

🚨 X-rays reveal secret inside excavator

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 11:00PM ET August 28th, 2023.

Economy:  Recent data suggests the construction industry could shrink by 5.2% in 2023 as residential sector declines are exceeding expectations. However, we could gain some of that back. The report noted that construction is likely to grow by 2.7% between 2025 and 2027 thanks to investment in the industrial, energy, and transportation sectors.

THE BIG STORY

Relax the tax: Calls for fee reform grow

Prime Minister Justin Trudeau is facing serious pressure from voters as housing affordability has grown into a nation-wide crisis. One tool many have been calling all levels of government to use is taxes.

Calls for reform:

• Ontario officials are calling on the federal government to defer HST on all new, large-scale purpose-built rentals. The province’s housing minister stated that if Ottawa doesn’t take action, Ontario will.

• The Saskatchewan Urban Municipalities Association (SUMA) and NDP representatives want the province to do away with PST on construction projects. The province used to have a PST exemption on construction labour, but that was nixed in 2017.

• A growing number of developers, industry associations and economists believe that GST should not be charged on housing rental projects.

Why it matters: B.C. developer PC Urban explained that roughly 15 to 20% of the total cost for a project goes towards fees like GST, development cost charges and levies. Recent inflation means those costs are even higher than normal. In a strata condo project, GST is paid by the homebuyers and costs can be passed on to them. But for a rental project, the developer is stuck with them. This means it makes little financial sense to build rental housing.

The bottom line: We have to get real. Developers are running a business and you can’t expect them to lose money on purpose. Montreal recently attempted to fine projects that didn’t include affordable housing, but every single developer simply opted to pay the fine. We either need to use bigger sticks or try using some carrots, like cutting taxes.

NEED TO KNOW

The week's headlines

🚧 The Trans Mountain Pipeline Expansion project has hit a snag that could delay its completion. Project officials have filed for regulatory approval to alter the route of one of the remaining stretches of pipe yet to be completed. Trans Mountain Corp. said it ran into engineering while trying to drill a tunnel in B.C. and wants to alter the route and construction method.

⚖️ Ontario Premier Doug Ford says he is confident no laws were broken in a controversial Greenbelt land swap deal. The RCMP announced last week that it is assessing whether or not to investigate after receiving a referral from the Ontario Provincial Police. Weeks earlier, an auditor found the deal heavily favoured a small group of well-connected developers.

🔬 The federal government is supporting efforts in Alberta to advance construction technology. Ottawa announced $2.5 million in funding for the Southern Alberta Institute of Technology. The funds will go towards researching construction applications for robotics, automation and 3D printing. It will also help establish the school’s new Alternative Construction Technologies Centre.

🔥 Smoke poured from the CIBC building under construction after it caught fire in downtown Toronto this weekend. No injuries were reported but transit was shut down. CIBC Square, formerly known as Bay Park Centre, will feature two buildings and a one-acre elevated park over the rail corridor that will connect the two buildings.

🌊 Therme Canada is rethinking its proposal for a spa and waterpark at Ontario Place after backlash from community groups and politicians who oppose plans to privatize parts of the Toronto waterfront site. The redesign includes more parks and smaller spa buildings. Therme will be making a formal resubmission of the design to city officials in the coming weeks.

PEOPLE MOVES

This month’s People Moves featured the birth of company, new association leaders, a lifetime achievement award, and even the Order of British Columbia — the province’s highest citizen honour. Companies featured include Thind Properties, Burns & McDonnell, Bird Construction, Fengate Asset Management and more. Read the full feature below.

PROJECT SPOTLIGHT

Edmonton’s first net-zero energy building

The city of Edmonton has built its first net-zero energy building. Windermere Fire Station 31 held its grand opening over the weekend showcasing the integration of both natural and built environments which will serve the needs of a growing Edmonton suburb. The PCL project features a geothermal field and a 382-panel solar array with a rated capacity of 143 kilowatts. The station has already received a 2018 Canadian Architect Award of Excellence and is seeking LEED Gold certification.

PROJECT UPDATES

$400M Amazon AMXL fulfilment centre opens in Calgary

Two diamond Schmitt projects honoured by Fast Company’s Design Awards

Ontario begins work on long-term care home in Orangeville

Team shortlist announced for Keating Channel Pedestrian Bridge

Ferry Terminal work halted after Indigenous archeological site damaged

WHAT WE’RE TALKING ABOUT

LIST: 🗓️ 20 awesome construction events to pad your calendar

READ: 💰 Mysterious Silicon Valley elite spend $800M to build a city from scratch

READ: 📖 Children’s books teach construction concepts 

PHOTOS: 🚔 Australia finds $132M worth of cocaine inside excavator arm 

READ: 🏃 Toronto getting first ‘Dutch-style’ intersection built

PHOTOS: 🪧 Cheeky signs at London, Ont. construction site

HOT JOBS

🔥 Check out the best roles up for grabs in construction right now:

• Electrical Engineering Lead - Vancouver, B.C. - RAM Engineering

• Equipment Foreman - Acheson, Alta. - JEN COL Construction

• Manager, Climate and Energy - Vancouver, B.C. - Brightspot Climate

• Track Work Manager - Calgary, Alta. - Aecon Group

• Senior Manager, Transportation/Land Use Planning - New Westminster, B.C. - TransLink

• Proposal Manager – Burnaby, B.C. – SNC-Lavalin

• Manager, Transportation Planning – Toronto, Ont. – IBI Group

• Financial Director – Rosenort, Man. – K.A. Group

• Community/Stakeholder Relations Manager – Vancouver B.C. – Broadway Subway Project Corp.

• Chief Technology Officer – Winnipeg, Man. – ConstructionClock

Check out all roles at SiteNews Jobs or put your job post in front of tens of thousands of construction professionals here. . Hurry up before our free trial ends!

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Here’s to a great rest of the week!