What Canada’s snap election means for construction

Canadians were gearing up for a fall election, but new Prime Minister, Mark Carney, has shaken things up by calling a snap federal election for April 28. With just five weeks of campaigning, the race between Liberal leader Carney and Conservative Pierre Poilievre is set to be a tight one—and the stakes are high, especially for the construction industry.

So, why the sudden election?

The tipping point? Rising tensions and tariff threats from U.S. President Donald Trump. With trade on shaky ground, Carney has acted swiftly to reinforce Canada’s direction and leadership on the global stage.

Construction’s role in Canada’s Economic Landscape

The outcome of this election holds significant implications for the construction industry, a cornerstone of the Canadian economy. The sector employs over 1.6 million Canadians and contributes more than $CAD 162bn annually to national GDP. However, it faces several systemic challenges that require immediate and sustained policy attention

Chronic Underinvestment in Infrastructure

Canada's infrastructure has suffered from decades of underfunding, leading to deteriorating public assets and diminishing global competitiveness. A long term strategic investment approach is urgently needed to reverse this trend. The rising prices for materials, labour and insurance along with inflation and interest rates are not assisting with this matter nor helping with keeping projects to budget. 

Labour Shortages and Workforce Challenges

As demographics shift and experienced workers retire, the industry is facing a significant talent shortfall. By 2028, hundreds of thousands of roles will need to be filled, yet current immigration pathways and training initiatives are insufficient to meet this demand. 

Outdated Procurement Practices

Inefficient procurement models in Canada, characterized by excessive red tape and limited flexibility, significantly hinder the timely delivery of critical infrastructure projects. These traditional processes are often overly bureaucratic, requiring lengthy administrative steps and compliance checks that delay project initiation and deter smaller or more innovative firms from participating. The emphasis on rigid specifications and lowest-cost bids discourages creativity and limits the adoption of emerging technologies, sustainable practices, and modern construction methods. Moreover, the lack of adaptability in these models often leads to poor risk allocation, resulting in disputes, change orders, and cost overruns.

Policy Priorities for the Next Federal Government

Regardless of which party forms the next government, the construction sector must be prioritized within national economic policy. Key areas of focus include:

Strategic Infrastructure Investment

Infrastructure is fundamental to Canada’s prosperity. Investments in roads, schools, hospitals, water systems, and housing enabling infrastructure are critical to economic growth, public safety, and overall quality of life. Additionally, enhancing trade infrastructure will increase supply chain capacity and strengthen Canada’s position in the global market. 

Workforce Development and Immigration Reform

To address the labour shortage, Canada must take decisive action to attract, train, and retain workers. This includes promoting careers in the skilled trades, streamlining immigration processes, and improving support for newcomers and temporary foreign workers. CIOB offers globally recognized credentials that can play a key role in this effort by providing a clear pathway for international professionals to validate their skills and align with Canadian standards. CIOB accreditation assures employers of a candidate’s competency, ethics, and commitment to professional excellence. This can help to fast-track qualified individuals into the workforce while supporting the development of a more skilled, mobile, and resilient construction sector.

Improving Procurement Policies

To improve the speed, quality, and value of infrastructure delivery in Canada, procurement models must evolve to be more flexible, collaborative, and innovation-friendly. This starts with improving procurement to focus on performance and outcomes rather than rigid inputs, allowing contractors to propose effective, value-driven solutions that meet project goals. Embracing collaborative delivery models such as Integrated Project Delivery (IPD) and Progressive Design-Build can foster early stakeholder engagement, shared accountability, and more effective risk management—reducing delays and cost overruns. Additionally, streamlining approval processes and rethinking the bidding framework to reward innovation, sustainability, and alternative approaches will help attract more diverse, forward-thinking proposals. Collectively, these reforms would transform public procurement from a procedural bottleneck into a strategic tool for delivering high-quality, resilient, and future-ready infrastructure.

Conclusion

Canada’s snap federal election comes at a critical moment. As the country navigates economic uncertainty and global trade pressures, the construction sector must remain a central pillar of policy and investment. This industry is not merely about erecting buildings, it is about shaping the communities, infrastructure, and economic resilience that define our nation’s future.

The decisions made in the coming weeks will have lasting impacts. It is essential that policymakers recognize the vital role construction plays in Canada’s growth and prosperity.