National Infrastructure Assessment calls for overhaul of planning, financing and delivery models

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Ontario Construction News staff writer

Canada will need a “transformative shift” in how it plans, funds and builds infrastructure to meet the country’s housing and development needs over the next 25 years, according to the first National Infrastructure Assessment (NIA) released last week.

The report, published by the Canadian Infrastructure Council following months of engagement with governments, industry, academics, Indigenous organizations and other interest holders, outlines key pressures facing the country’s infrastructure systems and highlights opportunities to adopt more coordinated and data-driven approaches.

The Council says the NIA will be a resource for governments, infrastructure owners and investors, offering evidence and analysis to support long-term, strategic decision-making.

“The release of the NIA marks an important first step towards equipping decision-makers with the evidence, data, insights, and tools needed to plan and deliver housing-enabling infrastructure more strategically,” said Peter Weltman, the council’s vice-chair. “Our goal was to bring together all interest holders, from policy-makers to infrastructure operators, around a shared foundation upon which we can continue to build.”

Participants stressed that Canada’s current funding and financing programs tend to favour conventional design standards, risk-averse practices and established delivery models. The report says this dynamic often stifles innovation in areas such as modular construction, low-carbon materials, new technologies, nature-based solutions and alternative financing approaches.

Many participants reported that existing models emphasize lowest-cost bids, discourage early collaboration and under-reward sustainability, quality and long-term performance. Builders and developers noted that projects involving modular construction, low-carbon materials or digital monitoring systems often struggle to secure regulatory approval or financing because they are viewed as high-risk or non-standard.

Climate and investment experts also told the Council that natural or climate-aligned infrastructure can fail to attract investment because its benefits are long-term, dispersed or difficult to quantify under current evaluation frameworks.

Workforce gaps limit modernization

Labour and skills shortages emerged as another significant barrier to innovation. Participants pointed to a widening gap between increasingly complex infrastructure systems — including nature-based solutions — and the lack of training in areas such as digital asset management, sustainable design and integrated project delivery. Shortages in specialized roles, including design engineers, were cited as particularly constraining.

The report suggests these pressures may worsen due to declining university enrolment in engineering programs and broader workforce challenges, including the need to attract and retain skilled professionals in light of ongoing immigration patterns.

Public spaces seen as powerful, underused infrastructure

Another insight from the engagement process is the potential for public spaces to serve as a “multi-solving” tool that supports climate resilience, community well-being, social connection and economic development. Participants emphasized that well-designed public spaces can help build social licence for new housing and infrastructure projects, yet remain underprioritized in planning and investment decisions.

Participants identified several approaches to accelerate innovation and strengthen long-term infrastructure planning, including:

  • Broader use of pilot and demonstration projects to de-risk non-traditional delivery models, technologies and materials.
  • Procurement models that emphasize collaboration, flexibility and outcome-based evaluation, such as alliance contracting and integrated project delivery.
  • Greater investment in workforce development aligned with modern infrastructure practices, including digital tools, low-carbon design and factory-based construction.

Launched on Dec. 3, 2024, the Canadian Infrastructure Council was mandated to deliver Canada’s first NIA. A summary of engagement feedback is available in the Council’s What We Heard report.A related What We Heard summary outlines feedback gathered during that process.

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