Ontario Construction News staff writer
The Ontario General Contractors Association (OGCA) says many small and medium-sized contractors will not survive unless owners waive delay claims resulting from the COVID-19 crisis.
“COVID-19 has impacted the entire construction industry and has reduced the workforce with a significant supply chain disruption,” the association says in a statement. “Contractors are financially responsible for the inevitable delays this causes. Many companies will not survive unless owners waive the delay claims and contractors are allowed to apply Force Majeure under the Emergency Management Act.”
The OGCA says federal and provincial financial relief packages have assisted the industry, but more is needed to ensure the financial survival of the entire construction supply chain post COVID‐19. “The longer the pandemic, the more companies throughout the construction supply chain are going to have significant financial trouble,” the OGCA statement says. “Many small and medium-sized general contractors are not capitalized to survive the financial impact without implementing contractual relief.”
The OGCA also says is working with government and industry partners to keep workers safe and ensure the industry can continue building during the COVID-19 pandemic. “The OGCA’s members are some of the safest contractors in Ontario and have been working safely throughout the COVID-19 pandemic,” the association says.
“OGCA members have taken quick and aggressive measures to ensure all workers on project sites are protected from COVID-19. The organization has fully endorsed and adopted the new standards published by the Ministry of Labour and the Chief Prevention Officer. Construction sites should only remain operational so long as they stay safe.”
In a special OGCA board meeting, contractors from across Ontario passed a motion with recommendations to ensure that this essential industry remains operational.
“Ontario’s construction industry wants to remain open for business. Now more than ever, our workforce is needed to continue growing the economy in this most difficult time,” said OGCA president Clive Thurston. “Safety is our top priority. I encourage all contractors and industry partners to adopt the Ministry of Labour Standards.”