Response to the Province’s Community Benefits Agreement Announcement

July 24, 2018

The Southern Interior Construction Association (SICA) joins the British Columbia Construction Association (BCCA) in expressing deep concern about the Community Benefits Agreement announced by B.C. Premier John Horgan July 16.

SICA has received many calls from its membership expressing their concern over this announcement. Our members fear that this could result in their inability to bid on certain projects which could result in fewer bids and higher costs to taxpayers.

The Canadian Construction Association’s policy statement 4.16 states that "CCA is opposed to using the procurement of construction services to advance unrelated community benefits and other public policy objectives where they jeopardize the integrity of the competitive bid system".

Community Benefit Agreements are seen by various levels of government as a way to solve social issues, however, they represent a potentially limiting approach that may layer on costs and reduce competitive bidding on provincial infrastructure projects.

SICA and BCCA are non-partisan construction associations representing both union and open-shop employers. The two have always advocated for fair, open, and transparent procurement processes which are an obligation and responsibility of government to taxpayers.

The agreement’s approach to maximizing opportunities for both equity-seeking groups as well as apprenticeships can be valuable; however, it is extremely important that the government proceeds with caution to avoid any unintended negative consequences for both the construction sector and taxpayers.

The government is focusing on inclusivity through support for indigenous and local communities, women and apprentices. But British Columbians may not benefit when 80 percent of the construction workforce—which is non-union—could face potential barriers to participate in multi-billion-dollar public projects.

SICA is continuing to learn details of the Community Benefits Agreement and will work with BCCA and its regional construction association partners to monitor the rollout of the agreement in order to better understand its near-and long-term impact on the industry.

Read BCCA's Response to Community Benefits Agreement Announcement

Jason Henderson, CEO

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