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Why Are Canadian Construction Costs So High? (2018)

pedestrianobservations.com

51–60 of 146 posts

Re: Why Are Canadian Construction Costs So High? (2018)

#51
post #19
post #17

As I can see from living in Canada and travelling the world there can be several reasons: - corruption, especially in QC - over-the-top safety requirements, regardless of project size. E.g. in Toronto every road work sight has a police officer present who’s just standing there bored out of their mind. In Montreal it’d be two persons on each side holding a flag - a job in Europe replaced by a temporary semaphore. - la…

Agreed with the corruption and over-legislation, which in my experience coincide. Bidding on governement projects in QC is very painful to do and corruption is sky high so competition cant set in EDIT to add: example of QC bidding: most companies underbid the construction work to later postpone the deadline and request more money than originally bargained, and there doesnt seem to be any (enforced) legislation to con…

Sounds like Germany...

Re: Why Are Canadian Construction Costs So High? (2018)

#52

Earlier quoted context omitted.

- corruption, especially in QC If you think corruption is bad in Quebec, look at BC. One of the first things our current government did was to pass a law requiring that all government-funded construction must be performed by workers belonging to unions which donated to the governing party's last election campaign. A short time later, they changed the procurement rules from "lowest cost bid" to "best bid", with the ru…

I'm not convinced this is a bad thing, given only the information in your comment.

You're not convinced that it's bad for the government to deliberately overpay for projects in order to funnel money into the pockets of its political donors?

Re: Why Are Canadian Construction Costs So High? (2018)

#54
post #28

Here is a theory. Builders chargé maximum what they can. Home prizes has increased rapidly in Canada, some say possibly to a bubble level. Banks create new debt out of nothing through fractional reserve banking. Central banks support negative interest rates. A conseque of low interest rates is that many can afford to borrow to high real estate prices. The high real estate prices drive up building costs, since builder…

Yep! It's astonishing how many articles about price never mention supply and demand.

Neither the article or HN comments (so far) mention supply and demand.

Re: Why Are Canadian Construction Costs So High? (2018)

#55
post #50

Earlier quoted context omitted.

- corruption, especially in QC If you think corruption is bad in Quebec, look at BC. One of the first things our current government did was to pass a law requiring that all government-funded construction must be performed by workers belonging to unions which donated to the governing party's last election campaign. A short time later, they changed the procurement rules from "lowest cost bid" to "best bid", with the ru…

Taking lowest cost bid isn't always optimal. In Germany it is required to take the lowest cost bid which leads to all kinds of failed projects as the winning bid can't hold its bid. As well, life-time of things built this way have become awfully short.

Imagine if you were forced to buy all your stuff from the dollar store. Pretty obviously the results would be hit and miss, mostly miss.

Re: Why Are Canadian Construction Costs So High? (2018)

#56
post #45
post #17

As I can see from living in Canada and travelling the world there can be several reasons: - corruption, especially in QC - over-the-top safety requirements, regardless of project size. E.g. in Toronto every road work sight has a police officer present who’s just standing there bored out of their mind. In Montreal it’d be two persons on each side holding a flag - a job in Europe replaced by a temporary semaphore. - la…

Unrelated: as a non-native English speaker with CS background it's the first time I learned the original meaning of "semaphore". Took me some time to find https://www.uvm.edu/landscape/dating/road_signs_and_traffic_... to explain what is a semaphore (the search results were heavily biased to the word's use in computer science).

For what is worth, in Italy traffic lights are still called 'Semaforo'.

Re: Why Are Canadian Construction Costs So High? (2018)

#57
post #51
post #19

Earlier quoted context omitted.

Agreed with the corruption and over-legislation, which in my experience coincide. Bidding on governement projects in QC is very painful to do and corruption is sky high so competition cant set in EDIT to add: example of QC bidding: most companies underbid the construction work to later postpone the deadline and request more money than originally bargained, and there doesnt seem to be any (enforced) legislation to con…

Sounds like Germany...

Sounds like any government procurement in France… especially construction works that is budgeted for 5 years and strangely ends up lasting 10,15 years…

Re: Why Are Canadian Construction Costs So High? (2018)

#58
post #25

Earlier quoted context omitted.

Over-the-top safety requirements are spot on I think. Here in BC Worksafe BC just constantly adds on new rules and regulations every year, and they don't care about your company's budget or productivity. I know Worksafe programs are similar from province to province, so I would be curious to see a comparison of Canadian Worksafe safety standards to safety standards from around the world to see just how much more (or…

Well if we can't afford to build things without killing people, we shouldn't be building things. Construction safety rules act as a check on liberal capitalism's growth obsession.

I guess we better just live without anything then. You can’t build anything without there being a risk of injury or death. Just like how you can’t walk down the street without risk of injury or death.

Re: Why Are Canadian Construction Costs So High? (2018)

#59

Earlier quoted context omitted.

> Still lower than the U.S. I went to a couple of cities in Canada in the past year and there's construction everywhere, from skyscrapers to roads NYC has had skyscrapers going up left and right the past decade: Central Park, 111 West 57, One Vanderbilt, 432 Park, 30 Hudson, 3 World Trade, 53W53, 35 Hudson, One57, 1 Manhattan, 220 Central Park South, 15 Hudson, 125 Greewich, 425 Park, etc. All of those are taller or…

You name dropping one of the largest and most urbanized cities in the world proves what?

NYC doesn’t even make it in the top 10 biggest cities in the world. In fact NYC comes just behind Chengdu in 38th place. And in terms of density, NYC isn’t even in the top 50.

Re: Why Are Canadian Construction Costs So High? (2018)

#60
post #50

Earlier quoted context omitted.

- corruption, especially in QC If you think corruption is bad in Quebec, look at BC. One of the first things our current government did was to pass a law requiring that all government-funded construction must be performed by workers belonging to unions which donated to the governing party's last election campaign. A short time later, they changed the procurement rules from "lowest cost bid" to "best bid", with the ru…

Taking lowest cost bid isn't always optimal. In Germany it is required to take the lowest cost bid which leads to all kinds of failed projects as the winning bid can't hold its bid. As well, life-time of things built this way have become awfully short.

The thing to keep in mind is that it is not a bid if it is determined to be unrealistic. It is imperative that the contracting office understand whether a submission is realistic or not. If they do not perform that basic step, then the project will either fail, or be subject to expensive change orders that will likely inflate the costs and schedule massively.
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