In its most recent budget, the Canadian government allocated $81.8 billion over five years for the country’s defence and security, marking the largest defence investment in decades. Longer term, the government pledged to increase defence spending to 5% of gross domestic product by 2034, which would equal $150 billion annually.

Much of that investment will go to recruit and retain Canadian Armed Forces (CAF) members and to purchase equipment including aircraft, submarines and combat vehicles. But as much as $100 billion is also required for less visible but essential things like training and maintenance facilities over the next 15 years.

The construction of those facilities will take time, and time is already running short. The first of Canada’s 12 new submarines, for instance, is due to arrive in 2035. In the world of design and construction, that’s not far off.

Canada faces some real challenges when it comes to meeting these ambitious goals, but it can be done with the right planning and partnerships.

Project cost escalations hit a peak during COVID-19, but the cost of building materials and labour continue to increase at a faster annual rate than they did prior to the pandemic. Tariffs haven’t helped. Ten years ago, for instance, the average cost to build a hospital in Canada was just under $1,000 per square foot. Today, the average cost is just over double that.

If the procurement process to select a design consultant, architects, engineers and a general contractor takes 12 to 18 months, and then it takes another 12 to 24 months to complete the design process, there will be cost escalations before a shovel goes in the ground.

Fortunately, the Department of National Defence (DND) and Defence Construction Canada (DCC) cracked the code of long procurement processes years ago and now regularly do major procurements in a little as five months. But other federal and provincial departments and agencies haven’t done so, putting timelines and cost estimates at risk.

Four things can be done to mitigate that risk:

• Early planning and frequent collaboration: Early and thorough planning can help mitigate many risks. General contractors know the current conditions and can help prepare for future ones. We understand local conditions and which trades may be stretched. We can help with a planning process that can bring certainty to project budgets and timelines.
• The choice of project delivery method: The method chosen to deliver each project plays a major role in determining success. Generally speaking, the more that contractual arrangements and delivery methods encourage and facilitate collaboration, the better. Integrated Project Delivery, the Alliance method and even Public-Private Partnerships all have a role to play.
• Early approvals: Projects can face significant hurdles when seeking permits and approvals from various authorities. Municipal, provincial and federal governments all have a role to play to ensure the timely granting of approvals. Doing as much of this work up front makes everything run more smoothly down the road.
• Enable decision making: Projects run more efficiently when the owner’s representatives on-site have authority to make relatively straightforward decisions when an issue arises or a change order is needed, at least up to a certain threshold. It can save days and weeks on the schedule and keep the project moving forward. 

Defence and security projects are complex, requiring exceptional levels of planning and cooperation. Like other mission-critical facilities such as airports, hospitals and data centres, these projects require resilient, mission-focused infrastructure capable of withstanding threats while enabling secure, uninterrupted operations.

Effective preconstruction and design optimization are crucial to delivering in these conditions. So is experience. PCL has delivered projects for Canada’s defence and security departments and agencies since the end of the First World War, including the Communications Security Establishment Long-term Accommodation Project, the Royal Canadian Dragoons Regimental facility and the Canadian War Museum.

PCL’s advanced preconstruction approach engages our unique in-house expert services teams early in design to focus on design optimization, constructability assessments and driving maximum value to DND and DCC.

PCL can also drive value through its deep relationships in the design and construction industries, working in the buildings, civil and industrial sectors, all of which will be required for this national undertaking. 

There are currently about 38,000 vacancies across Canada’s construction industry, and that number is set to grow. The industry faces more than 250,000 retirements by 2032, and we are not seeing a one-for-one replacement.

Construction markets in certain regions of the country are already busy, with builders having their choice of projects to bid on. There are many opportunities in the public sector and with interest rates decreasing, the private sector is also picking up.

Innovation and the increased use of technology will help address this workforce gap, but it’s asking a lot for them to fill it completely. Governments, industry and the post-secondary sector need to come together now to develop plans to develop a larger construction workforce. One of Canada’s stated goals for defence procurement is to provide economic opportunity for Canadians, and that will include many excellent, well-paying jobs in construction, if we have the people ready to fill them.

Canada’s investments in defence, security and sovereignty will stretch into the Arctic, which is a completely different operating environment than south of 60 degrees. Nowhere is planning more important than when it comes to operating in the Arctic. Operating windows can be short, logistics are difficult and resources are not close at hand. Working with contractors who have extensive experience in the Arctic will be imperative if these projects are to succeed.

There is tremendous support among Canadians to preserve our national sovereignty and security in the face of global instability, and support for the federal government’s proposed investments is high. While the plans are ambitious, they can be achieved with the right planning, partnerships and collaboration.