CCA requests creation of an emergency cost relief program
In an email sent out yesterday morning, Mary Van Buren, president of the Canadian Construction Association (CCA), asked members to support the CCA’s urgent request of the federal government to “alleviate some of the financial pressure the industry is experiencing by creating an Emergency COVID-19 Construction Cost Reimbursement Program”.
Since the impact of COVID-19 on construction contracts and contractors is unprecedented, Van Buren said the construction industry is asking governments at all levels and private owners for “extraordinary consideration to relieve some of these impacts to help ensure that the industry has the capacity and can mobilize quickly to build the Canada of the future”.
Van Buren noted that operations have been impacted amid COVID-19, due to supply chain disruptions, staff shortages, increased cost of materials and government ordinances requiring partial or complete work stoppages, which vary across provinces.
“The industry needs fair consideration from federal, provincial and municipal governments when these unprecedented circumstances have an impact on contractual agreements,” said Van Buren, in her note to members.
“This is an unprecedented time for all of us. As we continue to work our way through this crisis, the impact on our economy will be substantial and this pandemic will strike at the heart of our country’s economic engine, the small and medium sized enterprises (SME),” said Daryl Sharkey, executive director of the Electrical Contractors’ Association of Ottawa. “Already, business owners are feeling the effects of staff shortages, increased material costs, supply chain disruptions and government restrictions. This is why the Electrical Contractors’ Association of Ottawa supports the Canadian Construction Association’s efforts in prompting the federal government for an Emergency COVID-19 Cost Reimbursement Program. A construction-specific support program would provide much needed relief to our industry and those who drive our economy.”
The CCA recommends that eligible costs be reimbursed up to five per cent of the contract value to start with, with the hope that the program can be adjusted as the duration and full impact of COVID-19 become clearer over time.
Click here to send a letter to your MP in support of the CCA.