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Why Are Canadian Construction Costs So High? (2018)

pedestrianobservations.com

81–90 of 146 posts

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

#81
post #4

Disappointingly, the answer from the article is "I don't know." This article could be condensed to a table.

Still raising the issue is important. I don't know, but that I know I don't know makes me a better, more informed voter than before when I didn't even know that it costs more to build here than other countries.

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

#82
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…

The US State of Massachusetts, for what it's worth, also uses police officers to control and supervise traffic around all worksites involving streets or roads. These police details are paid by the organization doing the work. Condo developers, public utilities, and municipal public works departments all pay the same rates. This stuff is expensive. It cost hundreds of millions of dollars US during the Big Dig. Our loc…

> Big Dig

just for some context:

> The Central Artery/Tunnel Project (CA/T), commonly known as the Big Dig, was a megaproject in Boston that rerouted the Central Artery of Interstate 93 (I-93), the chief highway through the heart of the city, into the 1.5-mile (2.4 km) Thomas P. O'Neill Jr. Tunnel. The project also included the construction of the Ted Williams Tunnel (extending I-90 to Logan International Airport), the Leonard P. Zakim Bunker Hill Memorial Bridge over the Charles River, and the Rose Kennedy Greenway in the space vacated by the previous I-93 elevated roadway. Initially, the plan was also to include a rail connection between Boston's two major train terminals. Planning began in 1982; the construction work was carried out between 1991 and 2006; and the project concluded on December 31, 2007 when the partnership between the program manager and the Massachusetts Turnpike Authority ended.

> The Big Dig was the most expensive highway project in the US, and was plagued by cost overruns, delays, leaks, design flaws, charges of poor execution and use of substandard materials, criminal arrests,[2][3] and the death of one motorist.[4] The project was originally scheduled to be completed in 1998[5] at an estimated cost of $2.8 billion (in 1982 dollars, US$6.0 billion adjusted for inflation as of 2006).[6] However, the project was completed in December 2007 at a cost of over $8.08 billion (in 1982 dollars, $14.6 billion adjusted for inflation, meaning a cost overrun of about 190%)[6] as of 2006.[7] The Boston Globe estimated that the project will ultimately cost $22 billion, including interest, and that it would not be paid off until 2038.[8] As a result of a death, leaks, and other design flaws, Bechtel and Parsons Brinckerhoff—the consortium that oversaw the project—agreed to pay $407 million in restitution and several smaller companies agreed to pay a combined sum of approximately $51 million.[9]

https://en.wikipedia.org/wiki/Big_Dig

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

#84
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…

> - corruption, especially in QC

Quebec removed a blindfold with the Charbonneau Commission.

A sincere question: have other provinces done the same recently? What did they discover?

> - 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.

How much does that add to a project that costs 9-10 digits?

> - lack of experience and expertise. Canada is a relatively young country with very few major infra projects under its belt.

What's your definition of "major infra projects?"

Canada is geographically enormous, with extreme climate and terrain, and clustered populations. Yet somehow they've built infrastructure for a modern, vibrant economy.

Examples:

70 years of remote hydro-electric plants and a transmission network for half a dozen provinces and states.[1]

50 years of nuclear power plants in half a dozen countries.[2]

A counter example for corruption (Canada is currently removing another blindfold), but about a century of bridges, tunnels, highways around the world.[3]

> - lack of care by citizens. Most Canadians aren’t well travelled outside of Americas.

Citation?

> They don’t know what good cities look and feel like.

Ouch.

[1] https://en.wikipedia.org/wiki/Hydro-Québec

[2] https://en.wikipedia.org/wiki/Atomic_Energy_of_Canada_Limite...

[3] https://en.wikipedia.org/wiki/SNC-Lavalin

Edit: typo & clarity

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

#85
In Canada general construction costs like home renovation/building are not that high.

As soon as the government gets involved in a public construction/renovation project costs sky rocket. I can only attribute it to bureaucracy, corruption, and indifference since the tax payers pockets are endless. Contractors all have to be Unionized (good/bad?), it seems there is no urgency to do anything quickly or in a cost effective manner.

When you look at the renovations on the subway taking place at Royal York Station, it's comical. The project shouldn't take more than 3-6 months but it seems they want to drag out the job so they can retire after it's complete in 20-30 years. Runnymede Station took about 5 years and I'm not sure they're finished. Something like pulling up 200 sq/ft of tile can take a 1-2 months of 2-3 guys working 8 hours a day.

This is what happens when there is corruption with no oversight and the source of payment is the tax payers pocket.

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

#86
post #30

Earlier quoted context omitted.

> Lines painted last 2 months at most, then are gone. This is due to federal environmental standards; the old oil paints that actually worked are banned.

I actually wasn’t aware of this. I was wondering why there wasn’t a better alternative, but it seems there are environmentally friendly paints more durable than what is in use in Montreal. It’s just more expensive. I don’t really understand how that can be the blocker in a city with strong economic activity, high income taxes, high fuel taxes, and high property taxes (>4% in our downtown core on non-residential prope…

Of course not. The company uses the substandard paint to ensure that there's a future need thus future income. The fac t that the shorter lasting paint is cheaper just gives the company a leverage point in the bidding.

Google 'mafia', 'phoebus cartel', and many other examples of skimming, profiteering, and collusion to fix prices.

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

#87

In Canada general construction costs like home renovation/building are not that high. As soon as the government gets involved in a public construction/renovation project costs sky rocket. I can only attribute it to bureaucracy, corruption, and indifference since the tax payers pockets are endless. Contractors all have to be Unionized (good/bad?), it seems there is no urgency to do anything quickly or in a cost effect…

Alternate take:

Large civil projects are more complex than home renovation projects and are thus less likely to be accurately assessed by our simple planning heuristics. (see "the planning fallacy"). Each gap in the actual vs. planned outcome requires change-orders that slow down schedules and cost more money.

http://freakonomics.com/podcast/project-management/

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

#88
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…

The US State of Massachusetts, for what it's worth, also uses police officers to control and supervise traffic around all worksites involving streets or roads. These police details are paid by the organization doing the work. Condo developers, public utilities, and municipal public works departments all pay the same rates. This stuff is expensive. It cost hundreds of millions of dollars US during the Big Dig. Our loc…

You'll regularly see a those cops hanging out in front of a construction site (doing nothing) or sitting in their cars (doing nothing). They could just as effectively be replaced with an orange cone.

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

#89

Earlier quoted context omitted.

> lack of experience and expertise. Canada is a relatively young country with very few major infra projects under its belt. Gawd. As if Canadians are too dumb to go to international conferences like everybody else. Maybe they wouldn't let us in because we are wearing toques and speak in funny accents.

Toronto is a larger city than Chicago, and has more construction. We hold international conferences.

Additionally, who in their right mind wants to go to Chicago for literally any reason?

Source: I am an American who has visited Chicago 3 times and hated it more and more each time due to prices, crime, horrible weather, and extreme lack of anything to do

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

#90
post #75

I think the main issue is why American costs are so low. It still amazes me how you can buy a big beautiful house in the sun belt for a few hundred thousand. If Canada is more expensive its probably sensible. I realize I'm being downvoted but you have to realize that most of the developed world has a great standard of living but a new build 4 bedroom house on a 1/4 acre of land is completely unaffordable for most peo…

This article is about public transit construction costs, so your comment is fairly off topic. In the realm of public transit, American costs are absurdly expensive
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