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August 30, 2006 - NEWS RELEASE
Federal 2010 Contribution a Welcome Recognition of Construction Realities
Burnaby, B.C. – A group representing senior executives from BC’s largest construction firms is applauding the federal government for coming to the table with an additional $55 million to bridge the gap between the original 2010 construction budget and the reality of construction costs that exists today.
“The federal government is acting like a true partner in acknowledging what we have known in BC for some time,” says Philip Hochstein, Chair of the 2010 Construction Leaders Taskforce. “Annual construction inflation hit double digits in 2004 and has continued at that pace since. During the nineties through to 2001, construction inflation was about 2%, so when the Olympic budget was being drafted, no one, not even industry insiders, predicted just how dramatically costs would rise.”
The 2010 Construction Leaders Taskforce, comprising 20 industry owners and senior executives with over 400 years of collective experience, was formed in July of 2003 to provide high level advice on issues such as labour supply, costs and tendering.
“Given the market they are operating in, VANOC has done a tremendous job of exploring cost saving design and venue alternatives,” adds Hochstein, citing a redesign of the Nordic venue and moving the broadcast centre to Vancouver rather than building one in Richmond as originally planned.
Record high fuel and commodity prices, rising construction labour costs after years of wage stagnation, and the shortage of skilled workers which lowers productivity are the key components of the inflationary perfect storm.
“No doubt the usual anti-Games, anti-fun and anti-business crowd will be pointing to the funding increase to advance their agendas,” concludes Hochstein. “But higher construction costs are simply a fact and today’s announcement that the Federal government will be sharing the burden should be great news to all British Columbians.”
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For more information, please contact:
Philip Hochstein, Chair
Office: 604.298.7795
Cell: 604.561.9402
Email: philip@icba.bc.ca
The membership of the 2010 Construction Leaders Taskforce includes: Bird Construction, Dominion Fairmile Construction, EllisDon Corporation, Emil Anderson Construction, Graham Construction & Engineering, Intertech Construction Group, JJM Construction, Kinetic Construction, Knappett Projects, Ledcor Construction, Metro-Can Construction, Norson Construction, PCL Constructors Westcoast, Peter Kiewit Sons’, RAM Construction, Scott Construction, Stuart Olson Constructors, TASK Construction Management, Vanbots Construction, and the Independent Contractors and Businesses Association of BC.
| ICBA is the voice of BC's construction industry. For further information, or if you have any questions or comments regarding this article, please contact ICBA. |
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