The Canadian Construction Association (CCA) is calling for the federal government to create an emergency program to provide contractors with financial relief for costs incurred due to the COVID-19 pandemic.

In a letter to members, CCA president Mary Van Buren called for the association’s 20,000 members to write letters to government requesting that governments at all levels take steps to relieve the financial impacts of the pandemic, and ensure industry has the capacity and can mobilize quickly to build once the pandemic ends.

“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,” wrote Van Buren. “The industry needs fair consideration from federal, provincial and municipal governments when these unprecedented circumstances have an impact on contractual agreements.”

CCA is asking contractors to put their names to form letters to be sent to local members of Parliament. The letter explains the extent to which construction contributes to Canada’s economy, and to national infrastructure priorities—including those that support the defence of Canada, that maintain and enhance transportation infrastructure, and that support the delivery of justice and public administration.

“The highest focus of the construction industry is on the health and safety of our workforce, their families, colleagues and communities,” says the letter. “Provided sites remain compliant with the requirements and guidance of public health authorities we urge you to continue with these projects, as well as continue with the tendering and awarding process. Should this construction activity come to a halt, given the scale of employment of our sector and the impact on quality of life daily of Canadians, there would be an immediate impact on the social and economic development of the country.”

The association is recommending that eligible costs be reimbursed up to 5 percent of contract values as a starting point, subject to the program being adjusted as the duration and full impact of COVID-19 become more clear over time.

Eligible costs under the proposed Emergency COVID-19 Construction Cost Reimbursement Program would include those incurred after March 15 for such expenses as:

• 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.

The letter also reminds the federal government of the need to issue a clear statement of policy that addresses how it will treat delays, project disruptions and other COVID-19 related costs.