The National Trade Contractors Coalition of Canada (NTCCC) is calling on the federal government to provide relief to trade contractors for unforeseen costs and project delays relating to the COVID-19 pandemic.

The coalition says its members are concerned that the increase in costs from the lower productivity and meeting new health and safety operating protocols will have a significant, negative impact on their businesses.

“We need to make sure that businesses that are continuing their work are doing so in a safe manner that promotes the health of workers,” says the NTCCC. “We also need to make sure that continuing work does not lead to undue financial hardship for trade contractors.”

The NTCCC has asked its members to participate in a letter-writing campaign to their members of Parliament and the Minister of Public Services and Procurement Canada urging the federal government to take action on these issues. A form letter prepared by the coalition reminds the government of the challenges being faced by trade contractors—many of which continue to operate as essential services—including the availability of skilled labour, supply chain disruptions and new health and safety protocols to keep workers safe.

“As a result,” says the coalition, “it is very difficult if not impossible to meet contract schedules. This creates a great deal of uncertainty and potential for litigation around schedule delays and costs in these already difficult times.”

The letter explains that construction contributed more than 8 percent to Canada’s gross domestic product in 2019, and employed more than 1.2 million people. Trade contractors conduct about 80 percent of the work in the construction sector. The costs that the industry has seen in relation to COVID-19 were unforeseen at the time of project tendering and bidding. They are creating immense pressure on these businesses, not only from daily operating losses, but also from the risk of litigation for failing to meet pre-COVID19 contract terms.

“We need flexibility and support in order to finish these projects and not face bankruptcy,” says the letter.

NTCCC asks the federal government to address liability stemming from delay claims on federal projects. It is also requesting a program of financial support aimed specifically at the construction industry to help contractors bridge the gap between current projects and the time at which they start new work.

“Governments will turn to our sector to drive the economic recovery when stimulus measures are implemented,” says the letter. “We need to be in a viable position to do the work and hire back our workforce when new projects are rolled out.”