Journal of Commerce | Don Procter | November 10, 2025
The fall federal budget offers encouraging signals for Western Canada’s construction sector, though turning policy into timely projects is not without logistical and regulatory hurdles.
Budget 2025’s $115 billion commitment to infrastructure over five years is what the B.C. construction sector has been calling on for years, says Chris Atchison, president, B.C. Construction Association (BCCA).
“It’s promising on a lot of levels for construction,” he says of the 493-page financial blueprint.
But further consultations with the construction sector are critical to ensure infrastructure is built “in a practical manner,” he says.
There is room for improvement in procurement policies to allow projects “to progress efficiently and as cost effectively as possible,” the BCAA president says.
Immigration programs that address skilled worker shortages are critical too.
The BCCA supports the government’s plan to reinstate accelerated capital cost allowances (CCAs) for LNG equipment and related buildings, which had expired in 2024. The proposal, however, applies only for low-carbon LNG facilities
“The means, measures and incentives will enable the progress of these approved projects that will better the economy of B.C.,” Atchison says.
To meet eligibility requirements, a facility would need to comply with new high-emissions performance standards. Details on those requirements haven’t been announced.
On paper, the budget has a spate of positives for the construction industry, but the devil is in the details, says Darrel Reid, Progressive Contractors Association of Canada’s (PCA) vice-president of public affairs.
“We are approaching this in good faith.”
Reid applauds a streamlined regulatory system, a boost in skills training money and the Foreign Credential Recognition Action Fund, which speeds recognition of international qualifications.
The PCA also supports the permanent shift to a fall budget cycle which helps industry and governments plan budgets.
Concerning, however, are union-exclusive community benefit agreements, procurement rules that limit access and BTU (Canadian Building Trades Unions) defined labour terms and tax credits, including the Clean Economy Investment Tax Credits which are tied to collective agreements, Reid says.
The Vancouver Regional Construction Association (VRCA), which represents more than 1,000 construction companies across the Lower Mainland, says in a statement meeting the budget’s objectives will require a lot of co-ordination on the ground.
“The investments are bold, and the direction is right, but turning ambition into action will take timely permits, fair procurement and a workforce ready to build,” says Jeannine Martin, VCRA president.
The association is calling on collaboration from all government levels to break down permitting bottlenecks and align procurement timelines.
The Alberta Construction Association (ACA) is pleased with the infrastructure investments.
One challenge, however, is meeting the skilled labour pool needs.
“If everything were to hit at once I would say our talent pool isn’t deep enough,” says Warren Singh, executive director of the ACA.
The ACA is hopeful the workforce skills fund expansion raised in the budget will help to meet the talent needs.
Singh says the feds commitment to the Pathways Plus project – a carbon capture, pipeline system and storage network that supports the province’s conventional energy sector – is a budget highlight.
It means “any increase in production can be met with carbon capture sequestration so we are not massively increasing our carbon footprint.”
The ACA is also pleased with the announcement of The Port of Churchill Plus. Developed in partnership with Indigenous people in the Prairie provinces, it aims to modernize critical northern trade and transportation infrastructure and improve access to global markets.
The Calgary Construction Association (CCA) also highlighted the benefits of the Pathways and Port of Churchill project announcements.
In a statement it added the $115 billion infrastructure commitment, including $51 billion for local housing and transportation, could strengthen communities and fuel long-term growth.
The CCA further applauds the government for installing the Major Projects Office in Calgary.
The B.C. Building Trades (BCBT) welcomes the expansion of the Union Training and Innovation Program as it will have “a significant impact” on training the next generation of skilled tradespeople, says Brynn Bourke, executive director of the BCBT.
The association supports the government’s infrastructure spending program but wants assurance private/public projects are tied to “good-paying union jobs and apprenticeship requirements that prioritize local hiring and support long-term workforce development,” Bourke says.
The budget is not “transformational” but it comes with some welcome measures for the construction industry, wrote Jock Finlayson, chief economist for the Independent Contractors and Businesses Association, on the ICBA’s website.
The infrastructure infusion and fast-tracking major projects are upsides but, he wrote, there are few updates on housing and planned cuts to immigration risk labour shortages.