Government of Alberta Releases Ministerial Mandate Letters, Calgary Construction Association Encouraged by Collaboration and Partnership Potential

Throughout this week, the Government of Alberta has been releasing its new Ministerial Mandate letters. These mandate letters are a crucial step towards progress and development in our province. They outline the priorities and objectives of each minister, paving the way for the relationship with society and various business sectors, including construction.

As representatives of the construction industry, we are encouraged to see a strong focus on infrastructure development, procurement and supporting the labour force. The mandate letters emphasize the importance of addressing concerns around public procurement, building efficient infrastructure, creating job opportunities, and boosting economic growth.

Key highlights include:

-?????????The Minister of Service Alberta has been directed to consult on potentially extending prompt payment legislation to the Government of Alberta projects and complete any outstanding regulatory work on the current legislation to ensure its full implementation as soon as possible to address the problems in the Alberta construction industry related to timeliness of payments from contractors to subcontractors.

When Prompt Payment Legislation was implemented in 2022, the construction industry was disappointed that the legislation did not apply to Government of Alberta work. We hope that through this directive, the Minister of Service Alberta can consult with industry and find an equitable solution, ensuring protections and prompt payment for construction workers on Government of Alberta jobs.

-?????????Further, the Minister of Service Alberta has also been directed to continue to act on the MacKinnon Panel’s recommendation by forming a procurement council to provide a regular forum for conducting ongoing dialogue among representatives from major procurement ministries and industry organizations whose members supply goods, consulting services and construction services for the Government of Alberta.

During the recent election cycle, the Calgary Construction Association called on the Government of Alberta to appoint a ministerial task force on risk assessment and procurement. We know that existing procurement practices have resulted in costly interruptions to capital projects and the adoption of increasingly untenable risk profiles for the industry. Through this directive, we can move towards true collaboration and partnership between industry and the Government of Alberta.

-?????????The Minister of Infrastructure has been directed to analyze the current process for building schools and hospitals with a view to accelerate construction timelines and reduce cost.

As proponents of alternative project deliver models and approaches, we believe that engaging early on with our industry can be beneficial in preventing cost overruns and scope creep. To that end, we are encouraged by this development and offer ourselves to help on behalf of our membership and the construction industry.

-?????????The Ministers of Infrastructure and Jobs, Economy and Trade have been directed to design a ministry specific job attraction strategy to raise the awareness of young Alberta and adults changing careers, of the skilled trades and professions available in the construction industry, including pathways for education apprenticeship and training.

The goal of this directive is to alleviate labour shortage challenges by encouraging youth to consider careers in the skilled trades. ?The shortage of skilled construction workers is causing concerns about potential delays and increased costs in the local construction industry. Despite a growing demand for new homes and infrastructure projects, exasperated by record migration to the Calgary region, both commercial and residential builders are struggling to find enough workers to keep up with the pace of development. Therefore, an emphasis on encouraging youth to consider careers in the trades one strategy to alleviate labour shortages.

For more information, please contact:

Frano Cavar,

Director of Government Relations, Calgary Construction Association

[email protected]