Inflation is a Real Threat to Canada’s Construction Industry.
Inflation presents a significant challenge for Canada’s construction industry, which faces rising costs in labor and materials. Contractors, owners, and procurement agencies must collaborate to manage these escalating costs effectively. One solution is to develop a price index for volatile materials like steel and copper, adjusting project prices based on fluctuations. This approach, focused on risk-sharing, aims to mitigate inflation’s impact while ensuring project success. While this is not yet the norm, it offers a pragmatic, cooperative path forward.