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At a Glance:

The construction sector in Quebec faces numerous hurdles, causing delays and threats to ongoing projects. The Quebec Construction Association, representing over 20,000 companies, has penned an open letter voicing concerns over the slowdown instigated by the Legault government. The letter highlights several halted projects, including hospitals in diverse locations like Mont-Laurier, Saint-Jérome, La Malbaie, and Sept-Iles, as well as numerous educational network and transportation projects.

Delayed Projects and Their Consequences

In contrast to the government's claims of record infrastructure investment, entrepreneurs on the ground affirm that the situation is far from rosy. Hospitals, CHSLDs, schools, and several other projects face a standstill without clear timelines. Meanwhile, the government's maintenance deficit has more than doubled since the Coalition avenir Quebec assumed power in 2018. The Order of Engineers shares the ACQ's concerns, as they fear for public safety.

This slowdown reportedly compromises the quality of services to citizens, deepens infrastructure maintenance deficits, and acts as a roadblock to Quebec's economic recovery. There is also the risk of a "domino effect" that could lead to bankruptcies within the construction industry, as government-funded ventures falter.

Reprioritizing Infrastructure Decisions

To avoid an impending economic boom-and-bust situation, the Quebec Construction Association proposes depoliticizing infrastructure decisions by establishing an independent committee of experts. The committee's role would be to evaluate infrastructure, propose schedules based on objective criteria like the state of the infrastructures, demographic projections, and climate issues, and justify any government decisions that diverge from the experts’ recommendations.

Government Strike Impact

Another immediate challenge the Legault government faces is the ongoing, open-ended strike by Quebec's 2,100 government engineers. This strike is likely to affect transportation ministry construction sites, amongst others. The Transport Union's president warns that the industry will struggle, with poor citizens being the main sufferers, while the average taxpayer bears the brunt of delayed infrastructure maintenance.

Enrichment Data

The construction industry grapples with impending labour and contract renewals in spring 2025, which will increase labour costs, escalating existing workforce shortages.
Material costs and tariffs, especially for crucial imports due to U.S. tariffs and trade tensions, pose a potential threat to budgets already strained by supply chain disruptions and inflationary pressures.
Slow permitting processes are a persistent hindrance, delaying project starts and exacerbating Quebec’s urgent need to build 860,000 additional homes by 2030 to address housing affordability.
Government-funded projects face reduced spending allocations, while potential strikes could delay crucial projects like schools, hospitals, and housing, threatening economic stability.

Contemplating the repercussions of these delays, it's evident that addressing the issues plaguing the construction industry is crucial to averting economic instability in Quebec and maintaining the quality of its infrastructure, thus preserving public safety.

The reconstruction of various transportation projects in Quebec is at risk due to the political standstill instigated by the government, potentially affecting the general public's mobility and safety.
The Quebec Construction Association has highlighted the concerns of taxpayers, as the delays in infrastructure projects, such as hospitals and schools, may contribute to a rising maintenance deficit and increase the risk of bankruptcies within the construction industry.
In an attempt to mitigate the economic impact of the ongoing delays, the Quebec Construction Association proposes establishing an independent committee of experts responsible for depoliticizing infrastructure decisions, thereby ensuring projects are scheduled based on objective criteria.
The ongoing strike by Quebec's 2,100 government engineers could further delay the scheduled construction projects, particularly those related to transportation, causing hardships to the lower-income citizens while putting additional burdens on the average taxpayer's wallets.