The British Columbia construction industry is undergoing a period of sustained stress. Dramatically decreasing market demand has resulted in an erosion of project equity across the province. As equity positions deteriorate, the viability of many projects is increasingly in question, particularly those that were marginally capitalized from the outset.
This erosion of equity has predictable consequences. Across British Columbia, projects are experiencing an uptick in developer insolvencies and Companies’ Creditors Arrangement Act (CCAA) filings, often mid-construction. These filings are no longer confined to fringe or speculative developments; they are increasingly appearing on conventional residential, mixed-use, and commercial projects.