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ARTICLE · 11 SEPTEMBER 2025

Navigating Procurement Reforms And Cost Pressures In Ontario's Construction Sector

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Entrenched municipal bureaucracy and escalating tariffs are putting unprecedented pressure on project timelines and budgets, and even worse, cancelling the tendering of planned public infrastructure projects for this year.

CanadaGovernment, Public Sector
Khalil Mechantaf
Khalil Mechantaf

Entrenched municipal bureaucracy and escalating tariffs are putting unprecedented pressure on project timelines and budgets, and even worse, cancelling the tendering of planned public infrastructure projects for this year. The situation, however, is not all bleaks. The funds to maintain and expand Ontario's infrastructure already exist. With minor financial adjustments, legal support and a changed mindset, the construction season could be back on track.

The issues facing the construction season are twofold: The current, outdated, procurement process and President Trump's tariffs.

Procurement

On April 2, the City of Toronto (City) published the results of a long-term study of its capital delivery process, particularly focused on construction. The report recommends the City should reform its capital delivery process to decrease delays in project starts, improve transparency and standardized practices. Some of the key recommendations include:

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