By Canadian Press

Liberals asked to help cover overruns on projects delayed by COVID-19

Apr 8, 2020 | 1:04 AM

OTTAWA — Cities and construction groups are asking the Trudeau Liberals to relax the rules for expected cost overruns from infrastructure projects facing delays from the COVID-19 pandemic — or add more cash to help them deal with it.

Federal rules around the $186-billion infrastructure program don’t permit provinces and cities to seek additional help from Ottawa if a project goes over budget for any reason, such as delays due to weather or a labour disruption.

But some provinces, such as Ontario, are curbing work on a number of job sites for public health requirements just as construction season is set to begin in earnest.

A data analysis by The Canadian Press shows federal funding is set to cover more than $5 billion for 607 projects with an expected start date of this spring, with 84 more in the summer.

Those projects range from new sewers in small towns to electric-vehicle charging stations at for-profit companies like Canadian Tire.

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A national construction association says pandemic-related delays on those projects will inevitably push them over budget, while municipal leaders say they’re worried about having enough money to cover the extra costs.

This report by The Canadian Press was first published April 8, 2020.

The Canadian Press