Should the BC government create the Ministry of Construction?

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Ahead of the October 2024 provincial election, two organizations representing the construction industry in British Columbia are calling on the province’s political parties to commit to creating a new provincial government Ministry of Construction.

According to the Vancouver Regional Construction Association (VRCA) and the BC Construction Association (BCCA), such a dedicated ministry led by its own cabinet minister would work with the Ministry of Housing to accelerate the construction of affordable housing.

They would also collaborate with the Ministry of Labour and Ministry of Education to address the skilled labour shortage, as well as liaison and advocate for new and improved regulations that streamline construction and public procurement practices, and improve environmental sustainability.

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Both organizations suggest that the construction industry needs its own cabinet role, given that this particular industry contributes $27 billion to the province’s GDP and the total current value of construction projects is approximately $160 billion.

This new minister would be the “ultimate project manager” for cutting through the red tape and making the construction process in BC more efficient.

“Given the importance of BC’s construction industry, not to mention its size, complexity, and impact on communities across the province, we remain steadfast in asking for this commitment,” said Chris Atchison, the president of BCCA, in a statement.

VRCA President Jeannine Martin adds, “Construction isn’t just about buildings. It’s about communities, infrastructure, and the future of this province. We need a minister who will ensure our industry gets the voice and attention it deserves. It’s time we had someone in charge of this vital, economy-driving, entrepreneurial industry.”

Both associations are also urging for the creation of “Prompt Payment Legislation” that would help ensure timely payments for construction contractors and subcontractors, which they say would provide greater financial security and stability and help mitigate cash flow challenges faced by small- and medium-sized businesses.

According to the VRCA and the BCCA, the Northern Regional Construction Association and the Southern Interior Construction Association fully support the creation of a Ministry of Construction.

Atchison notes the idea is not new, as the BCCA has been advocating for the creation of such a Ministry since 2019.

Currently, the Ministry of Transportation and Infrastructure delegates the responsibility of managing and overseeing major transportation infrastructure projects to the provincial Crown corporation Transportation Investment Corporation (TI Corp), which was previously the agency responsible for collecting tolls on the Port Mann Bridge.

TI Corp oversees about $15 billion in major provincial-led transportation infrastructure projects, including the replacement Pattullo Bridge, the replacement George Massey Tunnel, SkyTrain’s Millennium Line Broadway Extension, SkyTrain’s Expo Line Surrey-Langley Extension, and the fourth phase of the Kicking Horse Canyon Project.

This also comes at a time when the provincial government is seeing significantly higher costs for its various major construction projects.

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