Thursday, July 18, 2024

Member Covid-19 Advocacy Letter

Dear member,

As per the attached correspondence discussions between ACA and AB Infrastructure to address costs and / or schedule impacts for awarded projects and for current and future procurement has come to an impasse.  As a consequence ACA and partners are elevating our concerns through the attached letter to Finance Minister Toews, copied to the Premier and Minister of Infrastructure.

Letter from Alberta Infrastructure

Letter to Alberta Infrastructure Deputy Minister Shannon Flint

Letter to Alberta Minister of Treasury Board and Finance

As our member, you have a vital role in raising awareness among MLAs.

Please call and / or email your local MLA. (Find you MLA here)

Conversation talking points:

Good Afternoon,

I operate a contractor business working in the ___________ sector of the construction industry. Over the past 5 years the construction industry in Alberta has been challenging to say the least. Operating margins have become very narrow to non-existent in a very competitive market. During the past 5 weeks any margins that may have existed have been consumed from multiple sources:

  1. The cost of additional construction site safety. (Ensuring construction sites remain open and safe and healthy places of work for all construction workers).
  2. Delays in productivity (resulting from requirements for worker separation and extended home isolation for sick or potentially sick workers).
  3. Delays in the deliver of construction materials (Caused by factory shut down, factory slow downs and from an extreme slow down in delivery times due to addition burden on delivery infrastructure).

 The cost associated with overcoming these external financial burdens is real.

 As a construction business owner directly impacted by the governments declaration of Covid-19 as a pandemic, I have three requests:

  1. That Alberta Infrastructure recognizes the financial burden contractors have incurred on current AI projects,
  2. That Alberta Infrastructure include contract clauses in future construction project contracts that make provisions for costs that contractors may incur from delays or product re-sourcing that result from external Covid-19 impacts.
  3. Expedite the flow of money out to New Construction Projects. With item #2 is in place, it is imperative that the Government of Alberta keep Albertans working. The procurement processes for New Build Construction must be expedited, streamlined and effective. We recommend the following language be added to tenders and requests for proposals:

If a Covid Event affects the cost and/or time required by Consultants and/or Construction Contractors to perform the scope of their services in an orderly and efficient manner, including cost and schedule impacts associated with, for example, project shutdown, demobilization and remobilization, they shall be entitled to a reasonable adjustment in compensation and/or schedule.

Your immediate communication of my concerns to Premier Kenney and the Minister of Alberta Infrastructure, the Honourable Prasad Panda would be most appreciated.

After your conversation you can forward this email to the MLA’s office.