Digging In

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This episode highlights:

• Land Rights on Shaky Ground in BC: A landmark ruling in BC concluded that the Kawichin have Aboriginal title to about 800 acres in Richmond, establishing this as a prior and senior right over fee simple title for private landownerWhile the BC Premier David Eby has appealed the decision and stated landowners should be concerned about the ruling potentially having national implications, legal representatives for the Kawichin Nation and the judge herself disagree, saying private property owners are unaffected. However, specialized attorneys argue that Aboriginal title and fee simple title are both absolute and cannot coexist or overlap. • Wood Fiber LNG Doubles Down on Flotels: The Wood Fiber LNG project in Squamish, BC, has secured approval to deploy a second floating accommodation vessel, the MV Saga X. This flotel will provide approximately 642 more rooms for skilled trades workers and create up to 900 additional jobs, serving to accelerate project construction and relieve pressure on local housing and services in the community, a concern raised during 2019 consultation. • Manitoba's Rental Housing Incentive Program: Manitoba launched a $176.5 million rental housing construction incentive program designed to encourage private and nonprofit developers to build new rental housing. The program offers refundable tax credits of $8,500 per unit, with an additional $5,000 available for affordable units. Projects must include at least four units and remain rental housing for a minimum of 10 years to qualify. • Ottawa's $2 Billion Critical Minerals Strategy: The federal government introduced a $2 billion critical minerals fund aimed at reducing reliance on China and supporting Western supply chains by stockpiling domestically produced graphite and scandium. This strategy benefits projects like Neuvo Mond graphite, which secured a federal offtake agreement including a price floor to enable the construction of its $550 million mine. The fund is also investing $25 million and agreeing to stockpile scandium from Rio Tinto's Scandium plant in Quebec—the only facility of its kind in North America.

• Edmonton Manhunt for Construction Arsonist: Law enforcement in Edmonton is actively searching for a serial construction arsonist believed to be responsible for eight property fires targeting infill construction projects since September. As a result, developers are considering additional protective measures, such as cameras and patrols, and may face higher insurance and safety costs.

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This episode highlights:

• Lumber Production Cuts and Tariffs: Interfor, one of the world's largest lumber producers, plans to cut timber production in Q4 by approximately 250 million board feet, representing a reduction of around 26%. This decision is driven by a weak lumber market, bad conditions, and ongoing economic uncertainty, which has kept prices "unsustainably low". The Canadian softwood lumber industry faces a significant accumulated tax of 45% when entering the United States, following a recent additional 10% tariff imposed by US President Donald Trump. This environment has led to the indefinite shutdown of the Ear Falls sawmill in Ontario. • Contrasting Housing Market Data: Canada's housing starts trend rose 4.1% in September to a seasonally adjusted annual rate of 277,147 units, a gain bolstered by increases in the prairies, Quebec, and Ontario. However, the Greater Toronto Area (GTA) and Hamilton market experienced a significant slump in condo sales, hitting a 35-year low in the third quarter. Condo sales in that region were down 54% from the previous year, with only 319 units sold. Furthermore, there has been a record number of project cancellations year to date, totalling 18 projects, or 4,040 units. • Canada's Largest Mass Timber Prefabrication Project: Intelligent City and Sustainable Development Group have partnered to construct Canada's largest mass timber prefabricated housing project by unit count in Barrie, Ontario. The complex, which involves four mass timber towers sitting atop a two-story concrete base, totals 1,000 units. Intelligent City is starting to implement AI and robot-driven prefabrication to reduce construction time, lower carbon emissions, and require less skilled labor. This scale-up of industrialized timber construction aligns with Prime Minister Mark Carney's commitment to double the rate of new home building and his pledge of $25 billion in federal financing for builders of innovative and prefabricated homes. • Global Prompt Payment Legislation: Following recent prompt payment legislation tabled in BC, the episode features a bonus story about Hong Kong, one of the world's most densely populated regions, implementing its own prompt payment scheme after nine years of consultation. The Hong Kong scheme requires contractors to respond to payment claims within 30 days and mandates that an adjudicator decide on a dispute within 55 working days. The ordinance prohibits "pay when paid" clauses, ensuring subcontractors are paid even if their upstream payer has not received funds. The scheme provides a statutory adjudication process to avoid costly court procedures.

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This episode highlights:

• Prompt Payment Legislation is advancing in BC with the introduction of Bill 20, the Construction Prompt Payment Act. If passed, the legislation will set clear payment timelines, requiring owners to pay general contractors within 28 days and contractors to pay subcontractors within 7 days, while also including an adjudication system for disputes.• Industry groups, including the BC Construction Association, the Vancouver Regional Construction Association, and the Electrical Contractors Association of BC, are celebrating the proposed law but are urging officials to avoid following Alberta's prior path of excluding some public sector projects.

• Montreal-based Deep Sky has announced plans for a large-scale carbon removals facility in southwestern Manitoba. The initial phase of the project is valued at $200 million and is scheduled to begin construction in 2026.

• The Deep Sky facility aims to capture 500,000 tons of CO2 annually when at full capacity, utilizing Direct Air Capture (DAC) technology powered by Manitoba's renewable hydroelectric grid. Performance data from the company's 3,000-ton per year Deep Sky Alpha facility in Alberta will inform the technology selection for the Manitoba site.

• Metrolinx has initiated a 30-day final test, known as the revenue service demonstration, on Toronto's 19-kilometer Eglinton Cross Town LRT, which features 25 stops. The project, which began construction in 2011 and was originally slated to open in 2020, has faced repeated delays, technical issues, and cost overruns.

• The project delays have drawn substantial public criticism, including calls for the Ontario government to launch a full public inquiry into the matter.

• A consortium of Pomelo and Aecon has launched the next phase of the Port of Montreal expansion in Contrecoeur, a $69 million project which is positioned as Eastern Canada's largest container port development. The work includes constructing two berths totalling 675 meters to accommodate larger container ships, with operations expected to start around 2029.

• PCL Construction is donating $1.5 million to the Centre for Addiction and Mental Health (CAMH) to curate programming and education tools designed to help construction workers and their families address addiction and mental health challenges. This initiative responds to staggering statistics, including the fact that 64% of construction workers wish employers would do more to support mental health initiatives, and the industry represents nearly 8% of opioid toxicity deaths.

• Plus, a bonus story reveals the secrets of the "subway deer," or Toronto Seros. This scientifically significant fossil fragment of a skull with antler stubs was uncovered in 1976 during excavation for a subway extension in Toronto's West End, and recent DNA analysis has resolved decades of debate regarding its relation to modern deer species.

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This episode highlights:

1. The federal government's announcement to move to a fall budget cycle (delivered in November instead of spring), which officials say provides construction organizations and businesses with better lead time to plan projects ahead of the spring construction season. Finance Minister François Philip Champagne stated that this change, alongside a new capital budgeting framework, aims for more transparent and better timed generational investments in infrastructure and housing.
2. Alberta's gearing up for a major project push by committing $14 million to the early planning of a proposed crude oil pipeline destined for BC's northwest coast, with a formal submission expected in spring 2026. Premier Danielle Smith and the Energy Minister Brian Jean claim the project, supported by Enbridge, Trans Mountain, and South Bow, is critical to Canada's energy future and economic potential.
3. The Vancouver Art Gallery (VAG) has selected new design partners, Formline Architecture Plus Urbanism and KPMBB Architects, for its new home at Larill Park, making it the city's largest cultural infrastructure project in over 30 years. This follows a previously stalled attempt where the project budget skyrocketed from $400 million to over $600 million, prompting VAG to halt construction in August 2024 after already investing $60 million.
4. The ongoing drama surrounding Ontario's $2.5 billion Skills Development Fund, which came under scrutiny after the auditor general determined the selection process was "not fair, transparent or accountable". Despite findings that 549 lower-rated applications received $742 million, the fund continues to receive strong support from construction stakeholders, unions, and training organizations who rely on it for targeted, industry-led training programs.
5. Plus, a bonus story spotlights the unusual way Halifax is previewing its future emergency department, set to open in 2027, by unveiling a gigantic Lego model. The model, designed and built by award-winning artist Shawn Mcloud of Holdfast Bricks, used 25,000 bricks and took over 400 hours to complete, serving to entertain children while showcasing the future built environment

This episode highlights:

1. A new study on skilled trades: interest is strong, but white-collar preference and perceptions of physical demand are leading deterrents, emphasizing the crucial need to educate people about high-tech like drone piloting
2. A major robotic partnership between Promise Robotics and Madame Homes Alberta integrates AI and a "factory as a service platform" into large-scale residential construction in Calgary, pushing the industry toward industrialization
3. The federal government provides a $500 million loan to Al Steel—Canada's only independent steel maker and sole domestic military steel producer—to help it combat US tariffs and accelerate the adoption of electric arc furnaces
4. The historic $660 million Canada Infrastructure Bank loan supports Irving Pulp and Paper's $1.5 billion Project NextGen modernization, representing the largest forestry investment in Canada since 1993.
5. Plus, a bonus story spotlights a hard-hat-wearing hero who used a water tank truck to save the day during a fire in Three Fathom Harbor, Nova Scotia.

This week we break down the lifting of reciprocal tariffs with the U.S., major contracts awarded for Volkswagen's $7-billion EV battery plant in Ontario, and Ontario's $75-million investment in training thousands of new tradespeople and urban planners. We also cover two massive business moves shaking up the industry—ITC's acquisition of Farmer Construction and Lowe's $8.8-billion deal for Foundation Building Materials.