• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • EN | FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Capital Projects Energy Funds & Finance Mining View all
Advisory
Crisis & Risk Management ESG Strategy and Solutions Governmental Affairs & Public Policy
View Client Work
International Experience
Insights News Events Subscribe
Quarterly M&A Insights Quarterly Fintech Insights New Energy Economy Series ESG & the CIO
Business Law Talks Podcast Economic Outlook Class Actions: Looking Forward
People
Practices
Industries
Advisory Services
Client Work
About
Offices
News
Careers
Insights
Law Students
Events
Search
Alumni
Payments
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

Rising Costs, Supply Issues and the Need for Skilled Labour in Infrastructure

May 24, 2023

Ian Michael comments in Lexpert's Infrastructure Special Edition 2023 on the state of contract negotiations and dispute settlements in the sector—where inflation, supply chain issues and the need for skilled labour are changing attitudes about risk allocation.
 
One of the ways to deal with rising costs and supply issues is for owners to agree on advance payments for materials ordered earlier.  
 
Ian has seen this strategy in action and says, "We’ve had proactive project developers that have forced their contractors to purchase, for example, pipeline steel or other components for their project in advance and warehouse them."
 
"What you’re doing is trading longer-term cost volatility with upfront investment. So, if your financing and project budget allows you to make that investment upfront and sit on that investment for some time, plus warehousing costs, you may be ahead of the game."
 
Ian also notes that it isn’t just about the commodity price. Foreign exchange rates can often have an even more significant cost impact.
 
Many contractors and subcontractors are finding it increasingly tricky to get the skilled labour they need to complete projects promptly and cost-effectively, as well.
 
"Canada is a big place geographically, but a relatively small market, so one mega project in this ecosystem moves the needle, absorbing resources from a pretty large area."
 
A large pipeline or LNG project can "suck up huge amounts of labour and engineering expertise that would otherwise be available to other smaller projects in that same jurisdiction, and even an entire industry can get affected by a small number of mega projects.
 
"It is a national issue in terms of our ability to deliver important infrastructure projects that drive economic development, that drive productivity, that move Canada ahead and keep us competitive," Ian says. "Not having the people to actually get things done is just as much an impairment as regulations that hold us back."

 

Key Contact

  • Ian C. Michael Ian C. Michael, Partner

Beyond Succession Podcast: Navigating Family Enterprises

Related Links

  • Insights
  • Media
  • Subscribe

Related Expertise

  • Infrastructure & Project Development

Recent Posts

Announcements

Caroline Poirier Joins Bennett Jones as Partner in Montréal

September 19, 2023
       

Announcements

Richard Burgos Joins Bennett Jones as Partner in Montréal

September 19, 2023
       

In The News

There's A Lot of Optimism Around Profitability in Energy

September 19, 2023
       

Announcements

Bennett Jones a Champion Sponsor of Invictus Games Vancouver Whistler 2025

September 18, 2023
       

Announcements

Emmanuelle Demers Joins Bennett Jones as Partner in Montréal

September 14, 2023
       

Articles

Bennett Jones on Tax Disputes—September 2023

September 12, 2023
       

In The News

Alleged Forced Labour Investigations Highlight Importance of Engagement With CORE

September 12, 2023
       

Client Work

First Association Captive and First Limited Partnership Captive in Alberta

September 07, 2023
       

Articles

What B.C. Businesses Need to Know About the EV Transition

September 06, 2023
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
  • History
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2023. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones