In national news, the federal government has announced that the Canada Emergency Business Account program, which has provided interest-free, partially forgivable loans to approximately 900,000 small businesses to assist them in weathering the Covid crisis, has extended the repayment deadline from December 31, 2022 to December 31, 2023. Repayment on or before the new deadline will result in forgiveness of up to one-third of the value of the loans. Loans not repaid on time will be subject to a 5% interest rate per annum and must be repaid in full by December 31, 2025.
In national news, Rider Levett Bucknall has published its Quarterly Construction Cost Report. Major urban centres in Canada are reporting construction cost increases north of 10% over the previous year. Labour shortages and supply chain issues are blamed, along with “catch-up” from low cost increases in 2020. No cost relief is forecast in 2022.
In national news, consolidated employment in Canada rose by 55,000 positions in December, buoyed by 27,000 new construction jobs. This marks the first gain in construction jobs since last August, but construction employment remains 41,000 jobs below its pre-Covid level.
In Ontario, the Residential Construction Council of Ontario has provided updated guidance on vaccination against Covid-19. The guidance sheet includes a vaccine policy template, information on best practices, and resources regarding where and how workers can receive vaccination and booster shots.
In Quebec, the federal Minister of Employment remarked on progress made with respect to a pilot project to ease labour shortages, including an increase to the maximum number of temporary foreign workers in low-wage positions that employers in select sectors are allowed to hire, from 10% to 20%. More sectors are expected to be added as the pilot project advances.
In B.C., a survey of the member companies of the Independent Contractors and Businesses Association has revealed that 90% of B.C. construction projects face delays from supply chain issues, while 57% report increased costs of more than double the official rate of inflation. Many manufacturers have apparently stopped taking orders entirely. An informal estimate suggests that a wood-frame detached house costs $30,000 more to build than it did a year ago.
In B.C., the provincial government is budgeting $1 million to provide drug poisoning prevention services for construction workers, who are especially hard hit by the toxic drug crisis: 20% of those who have died of overdoses worked in the trades, transport, or as equipment operators. The funding is earmarked to expand the existing Tailgate Toolkit project, which is designed to reduce the stigma associated with substance use and raise awareness of pain management options and pathways to treatment.
In Alberta, the dramatic collapse of the Calgary event centre construction project has led to substantial acrimony, including accusations of sabotaged negotiations and counteraccusations of underhanded attempts to litigate the matter via the media. While the facts are not clear at this time, there are generally two competing positions. The first is that new Calgary mayor Gondek attempted to pile additional costs onto a completed construction deal at the expense of the Calgary Flames’ ownership consortium, CSEC. The second is that CSEC, which is contractually responsible for cost overruns, balked at commencing construction in the current supply chain and labour environment, and attempted to shift the blame onto Gondek for their own desire not to proceed. What is known is that Calgary’s municipal council has voted to bring in a third party to conduct future negotiations with CSEC.