Rising costs and delayed builds are anticipated as the globally impacted construction market navigates its way through COVID-19 (Ian Holmes/NanaimoNewsNOW)

By Ian Holmes

COVID costs

Construction costs rise as Van Isle industry grapples with COVID-19

Oct 2, 2020 | 5:22 AM

NANAIMO — A Vancouver Island construction insider says customers can expect costs to continue creeping up as companies deal with COVID-19 protocols and supply challenges.

Rory Kulmala, CEO of the Vancouver Island Construction Association, described the industry as apprehensive, but steady.

“We have a global pandemic that’s impacting costs,” Kulmala said. “Supply of materials, productivity and the general tempo of things is certainly being impacted.”

Kulmala said imported construction materials in particular are getting more expensive, and those costs are trickling down to customers.

On the productivity side, Kulmala said costs are increased by a slower work pace to adhere to a variety of requirements, including social distancing.

ride share rollout

Uber preparing for 'early 2025' launch in Nanaimo & rest of B.C.

4h ago

Playoff Time

Barsby Bulldogs hit the road for AA varsity quarterfinal game

44m ago

work stoppage

Canada Post workers are on strike. Here's what you need to know about your mail

3h ago

“We see reduced production and we still see a relatively high level of construction. That supply and demand is still there, but it’s being impacted by a different cause,” Kulmala said, who noted an ongoing labour shortage continues challenging the sector.

Construction is poised to play a vital role in Canada’s economic recovery.

Kulmala was encouraged to hear the Federal Government pledged to spend $10 billion on infrastructure projects across the country to create thousands of post-pandemic jobs.

The construction industry in the province was deemed an essential service early on during the pandemic.

Local taxpayers don’t appear to be overly exposed at this time by a fluctuating construction climate.

Phil Stewart, the City’s manager of engineering projects, said their current infrastructure projects are all within budget, involving locally available materials.

“We’re not seeing huge impacts at the moment, but not to say that it won’t happen in the future,” Stewart said.

He noted COVID-19 will impact costs of the new downtown primary fire hall project, slated to rise by $3 million to $20 million.

ian@nanaimonewsnow.com

On Twitter: @NanaimoNewsNOW