May 20, 2009

Association of Canadian Engineering Companies

ACEC urges Ottawa to extend infrastructure deadline beyond 2011

PATRICIA WILLIAMS

staff writer

The Association of Canadian Engineering Companies (ACEC) has urged Ottawa to extend the March 31, 2011 deadline for completion of projects under its $4 billion infrastructure stimulus fund.

Association president Jeff Morrison said the rationale is that it is now May and the bulk of the funding under the federal program is still not out the door.

“By the time funding is disbursed, work is procured and proper approvals are received, we are looking at a very narrow construction window for the remainder of 2009. We then essentially have one full season left under this time frame,” he said.

“That really doesn’t give you the ability to put in place projects that will have a long-term benefit to the country.”

ACEC has proposed that the deadline be extended by at least a year, if not more.

The infrastructure stimulus fund provides $2 billion in the current fiscal year and another $2 billion in 2010-11 for projects that can begin construction quickly and be built during the current and upcoming construction seasons.

Infrastructure Canada says construction readiness will be a key project selection factor.

Morrison said ACEC is concerned that the tight deadlines will prompt municipalities to roll out low-value, low-complexity projects, with a lot of design work done in-house.

“For our sector, this means that there will be less likelihood that there will be (outside) design work required and therefore less opportunity for employment growth and little stimulus effect.”

Morrison said ACEC and a growing number of organizations are calling for an extension of the deadline for project completion.

“(It’s) to capture the benefits of stimulus-related growth but also put in place projects that will have a long-term benefit to Canada,” he said.

The Canadian Construction Association has not made a decision on whether to press for an extension of the deadline, said president Mike Atkinson.

The matter will be on the agenda at the next board meeting in June.

“I’m not sure where we’re going with that,” Atkinson said.

“There may be other options than simply saying, ‘let’s extend the deadline for six months or a year or whatever.’ Maybe it’s a matter of stipulating that a project begins within that time frame.”

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