b'BCCA UPDATEChris Atchison, President, BCCAA MESSAGE FROM BCCATHE STAKES ARE HIGHER THAN EVEROriginally written for the Business in Vancouver mitigate their impact on existing contracts. And in the Southern Construction Supplement, July 2022. Interior, the effects of extreme weather all too often add yet another layer of disruption and risk.cross every region of B.C., contractors continue to A operate in a challenging, high-risk market.Rather than layering on challenge after challenge and change after Not long ago, Regional Construction Associationchange, playing to ideology rather than necessity, BCCA believes (RCA) members could confidently say that B.C.s constructionthat the provincial government needs to get back to basics to industry was booming and filled with opportunity.Despitesupport B.C.s 25,000 contractors and the 240,000 people who a shortage of skilled workers, things were good andwork for them. With unprecedented levels of investment in public gettingbetter. infrastructure comes aresponsibility to strengthen the industry thats needed tobuild that infrastructure.We cant say that anymore. Here are five actions to head off the failures that are looming on The end to the concrete truck drivers strikecouldnt havethe horizon:come fast enough. In the midst of a volatile economy, B.C.s1. Prioritize prompt payment legislation for fall 2022.industrial, commercial and institutional builders are straining2.I mplement targeted price escalation clauses that allow to meet the record-setting demand for construction services.reasonable flexibility in existing and new fixed-price contracts.As risk factors continue to rise, many contractors are nearing a breaking point. 3. Require public owners to limit bid/price acceptance to a maximum of 30 days (as even 30 days is not always possible).BCCAs submission to the Select Standing Committee on4.Create a fast track for skilled tradespeople coming to B.C., like Finance for the 2023 provincial budget focused on the needthe fast track already created to bring in labour for the tech for prompt payment legislation.The legislation would unlockindustry through the Provincial Nominee Program (PNP).cash flow and offer some counterbalance to the increasing fiscal pressure on contractors. 5. Forgive all post-secondary student loans for young people who get jobs in B.C.s construction industry and register as Lets look at a few of the challenges industry operators areapprentices, allowing them to earn outtheir loan with each dealing with right now: year of completed apprenticeship training.Material cost escalations.B.C.s construction industry was designated essential as it worked Supply chain disruptions. throughout the pandemic and kept the economy going inInflation and rising interest rates. communities across the province. Now, as B.C. strives to recover from the economic effects of COVID-19, the construction Contract terms and risk transfers are so creative that allindustrys role and survival is more important than ever. too often its too big of a risk to sign.High cost of staffing and the retirement ofYes, there is an opportunity. But that opportunity should not experiencedworkers. cost you your business, your health or your peace of mind. Weve Late payments, often well beyond120 days and gettingall learned a lot about life balance in the last two years. When risks are so high that long-time, successful contractors are openly later. Late payments beyond 30 days can be disastrous. Onlyquestioning their future in the industry, we need to listen. Lets in construction do we consider longer terms acceptable. not take anythingor anyonefor granted.Surprise labour legislation, such as B.C.s new five-daymandatory sick leave and Bill 10, which brings card checks and annual union raids back during the height of the summer building season.Morethan ever,the market conditions are too vague, demands are too high,and the outcomes are too unpredictable. TheChris Atchison fact thatthere is so much work doesnt diminish the risks orPresident, BCCA12 SOUTHERN INTERIOR CONSTRUCTION ASSOCIATION'