The Vancouver Island Construction Association (VICA) is closely monitoring the recent escalation in trade tensions between Canada and the United States following the implementation of new tariffs by both nations. These developments have the potential to significantly impact our construction sector, particularly in terms of material costs, project timelines, and overall economic stability.

Background on the Tariffs

On March 4, 2025, the United States imposed a 25% tariff on imports from Canada and Mexico, citing economic and border security concerns. In response, Canada announced immediate retaliatory tariffs of 25% on C$30 billion worth of U.S. imports, with potential further action on an additional C$125 billion in the coming weeks.

Impact on the Construction Industry

Given the construction industry’s reliance on steel, aluminum, and lumber, these tariffs could contribute to rising costs, supply chain delays, and market uncertainty:

• Rising Material Prices: U.S. tariffs on Canadian lumber have already driven lumber prices to a 30-month high, adding pressure to housing affordability and project feasibility.
• Increased Construction Costs: The 25% tariff on steel and aluminum will likely push costs higher, affecting commercial, industrial, and residential construction projects.
• Potential Project Delays: Supply chain disruptions and material cost increases could lead to project slowdowns or postponements, impacting development across Vancouver Island.

Economic Effects and Industry Resilience

While these tariffs introduce short-term challenges, VICA remains confident in our industry’s resilience and adaptability. We recognize the broader economic impacts, including:

• Inflationary Pressures: Higher construction costs could contribute to inflation, further affecting affordability in housing and infrastructure development.
• Workforce Stability: Uncertainty in pricing and project timelines could impact employment levels in the construction sector.
• Business Operations: Small and mid-sized contractors may face cash flow challenges, requiring careful planning to maintain stability.

Despite these challenges, Vancouver Island’s construction industry has weathered economic fluctuations before and will continue to adapt with VICA’s guidance and support.

VICA’s Commitment to the Industry

Rory Kulmala, CEO of VICA, reassures the industry that the association is actively engaged in monitoring developments, advocating for industry interests, and ensuring our members have access to accurate, up-to-date information.

“The construction industry on Vancouver Island is strong, and VICA is committed to helping our members navigate these challenges,” says Kulmala. “We are in direct communication with industry leaders and government representatives to advocate for fair policies and provide our members with the information and resources they need to adapt.”

Next Steps and Industry Support

As the voice of construction on Vancouver Island, VICA is committed to:

• Monitoring trade policy developments and economic impacts on our members.
• Providing timely updates and analysis to help businesses make informed decisions.
• Advocating for industry stability through collaboration with policymakers and industry stakeholders.
• Offering resources, guidance, and direct support to help our members navigate this evolving situation.

We encourage all members to stay informed by checking VICA’s website regularly for official updates, industry insights, and support tools.

Together, we will continue to build a strong, resilient construction sector on Vancouver Island.

The recently announced tariffs on construction materials are expected to have significant implications for our industry, leading to increased costs, supply chain delays, and contractual challenges. As businesses across Vancouver Island prepare for these changes, it is essential to take proactive steps to mitigate financial and operational risks.

What This Means for the Industry

These tariffs will likely result in higher material costs, which may disrupt supply chains and create challenges in meeting project timelines and budgets. Contractors, suppliers, and industry stakeholders must be prepared to navigate these uncertainties effectively.

VICA, alongside the British Columbia Construction Association (BCCA) and the Canadian Construction Association (CCA), is actively monitoring the situation and advocating for fair and sustainable solutions. In the meantime, we strongly encourage our members to take immediate steps to safeguard their projects and contracts.

Key Strategies to Protect Your Business

To minimize risk exposure, contractors should:

• Use Standardized Contracts – CCDC contracts, such as CCDC 2 (Stipulated Price Contract), CCDC 5A/5B (Construction Management Contracts), and CCDC 14 (Design-Build Contract), provide clear risk allocation and dispute mitigation.
• Include Price Escalation Clauses – Ensure that contracts account for unexpected material cost increases. CCDC documents include provisions for cash allowances and change directives that help manage volatility.
• Negotiate Material Price Adjustments – Work with legal advisors to include clauses that allow for adjustments based on market conditions.
• Secure Supply Chain Agreements – Where possible, establish long-term supplier contracts or explore alternative sourcing options to stabilize pricing.
• Review Force Majeure & Delay Provisions – Ensure that contracts offer reasonable relief for project delays caused by trade disruptions.
• Communicate Clearly with Clients & Owners – Set realistic expectations early regarding costs and timelines to prevent disputes and maintain strong client relationships.

BCCA has advised: Do not bid or sign contracts without clear duty provisions. Given the uncertainty surrounding supply chain stability, it is essential to review contract terms thoroughly and seek legal counsel before proceeding with new agreements.

Industry Survey – We Need Your Input

To gain a deeper understanding of how these tariffs are impacting construction businesses across the province, BCCA will be launching an industry survey in the coming days. The insights gathered will help shape advocacy efforts at both the provincial and national levels.

We strongly encourage all industry members to participate in the survey. Your feedback is critical in ensuring that policy recommendations reflect the realities faced by businesses on Vancouver Island. Watch for the survey link in your inbox soon.

VICA remains committed to advocating for fair procurement practices and providing our members with the resources they need to navigate these challenges. We will continue to share updates and best practices as more information becomes available. If you have any questions or concerns, please do not hesitate to reach out.

Stay informed. Stay prepared. Stay connected.

Getting Ahead of Potential Tariffs: A Guide for Businesses

With the announcement of a proposed 25 per cent tariff on all imports from Canada and Mexico by U.S. President-elect Donald Trump, set to take effect on January 20, 2025 (unless border issues are addressed), it’s crucial for businesses to prepare for the potential impact on operations and costs.

While these tariffs are not yet finalized and will require negotiation, taking proactive steps now will help ensure your business is ready for any changes.

The Canadian Construction Association (CCA) has provided valuable tips to help construction professionals address potential tariff changes and protect their businesses.

For Existing Contracts: What You Should Know

1. Review Your Contract
   Check if your contract includes provisions for price adjustments due to changes in taxes and customs duties. For example, paragraph 10.1 in CCDC 2—Stipulated Price Contract or CCA 1—Stipulated Price Subcontract may provide guidance. Be sure to also review any supplementary conditions, even when using standard CCDC and CCA forms.
2. Contracts Without Duty Provisions
   If no duty provisions are included, contractors may be liable for covering increased costs.
3. Encourage Fair Consideration
   CCA encourages project owners to fairly consider requests for price adjustments if contractors face unforeseen cost increases due to tariffs.

For New Contracts: How to Address Tariff Uncertainty

1. Raise the Issue Early
   If the contract for a potential project lacks duty provisions and you’re aware of possible changes to taxes or customs duties, formally bring this to the owner’s attention.
2. Include Duty Provisions
   Encourage the owner to include duty provisions or address this uncertainty in the bid documents. Refer to GC 10.1 of CCDC 2 for standard, industry-accepted wording.

Other Considerations: Key Points to Remember

• Argue for Cost Recovery
  If you’re facing unforeseen costs due to increases in taxes and customs duties, you may have a case for recovering additional costs. However, without clear duty provisions in the contract, this could be more challenging.
• Cost Recovery Due to Delays
  Changes, delays, or suspensions in a project that postpone material purchases and result in escalated costs might provide grounds for recovering these additional expenses, depending on the contract terms and specific circumstances.

Final Tip: Always Read Your Contract

The most important advice for construction professionals is to carefully read and fully understand your contracts. To help with this, CCA offers a comprehensive five-part “Read Your Construction Contract” webinar series, which provides practical guidance and insights.

Staying informed and proactive will empower your business to navigate potential tariff changes with confidence. For more resources and industry updates, visit the Vancouver Island Construction Association (VICA) website or contact our team for support.

Need a refresher on contracts? 

Check out our upcoming training and education sessions below:

• Legal Issues for Contractors | Live, Online – Vancouver Island Construction Association
• CCDC 2 Deep Dive: Read the Full Contract | LIVE, ONLINE Training – Vancouver Island Construction Association
• CCDC 5A/5B Overview | Live, ONLINE – Vancouver Island Construction Association
• Managing CCDC Contracts for Project Success | LIVE, ONLINE Training – Vancouver Island Construction Association
• CCDC 5A/5B: Construction Management Keys to Success | Live, ONLINE – Vancouver Island Construction Association
• CCDC Contract Updates Seminar | In-Person Victoria – Vancouver Island Construction Association

Vancouver Island’s Construction Industry Well Represented with New Leaders 

FOR IMMEDIATE RELEASE 
 

November 19, 2024 (Victoria, BC) – The Vancouver Island Construction Association (VICA) is pleased to announce the appointment of several new leaders to its Board of Directors for the 2024/2025 term. The announcement follows the conclusion of VICA’s Annual General Meeting on November 14th, 2024, at the Esquimalt Gorge Pavilion where the new board members were officially introduced. 

The 2024 election saw a strong turnout of eligible members who participated through online voting software. Each Industry Member is entitled to one vote per election. This year’s Annual General Meeting marked the highest attendance in VICA’s history, allowing Members to celebrate the newly appointed board. The 2024 AGM took place at the Esquimalt Gorge Pavilion on November 14, 2024. 

The 2024/2025 Board of Directors comprises a diverse and experienced group of individuals from across Vancouver Island’s construction sector. The newly appointed members include Stuart Cuthbert, Byron Tarby, Barclay Ellis, Mark Donahue, Morley Wilkins, Mark Wong, Chris Williams, Josh Fayerman, Allison Greaves, Kate Ulmer, James Clapp, Emma Miller, and Dave Flint. 

Additionally, the Board has appointed Kathy Parkinson, CFO at Ravenstone Construction, for a one-year term in accordance with VICA’s bylaws. 

CEO / CHAIR QUOTES 

“We are excited to welcome such a talented and diverse group of industry leaders to our board. This new leadership team will help steer the association through the challenges and opportunities ahead, continuing to serve the best interests of our members and the broader construction community on Vancouver Island.” 

– Rory Kulmala, Chief Executive Officer, Vancouver Island Construction Association  

“It’s an honour to take on this leadership role. Our industry faces both challenges and exciting growth opportunities, and I look forward to working closely with the board, VICA members, and staff to drive positive change for the construction sector on Vancouver Island.” 

– Barclay Ellis, Board Chair, Blue Anvil 

The VICA Board of Directors plays a crucial role in guiding the association’s strategic direction, providing oversight on key initiatives, and advocating for the construction industry across Vancouver Island and beyond. 

MEDIA & INTERVIEW INQUIRIES 
Audrey Wilson 
Manager, Marketing & Communications 
Vancouver Island Construction Association (VICA) 
audrey@vicabc.ca | 250-800-1722 

ABOUT VICA 
The Vancouver Island Construction Association (VICA) serves the construction community on Vancouver Island, the Gulf Islands, and other coastal areas of British Columbia. Our members come from all sectors of the industry, including institutional, commercial, industrial, civil, and multi-family residential construction. With a history dating back to 1912, VICA is one of Canada’s oldest not-for-profit construction associations, dedicated to providing advocacy, professional development, and support to the region’s construction industry. 

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The Canadian Construction Association (CCA) and regional associations like the Vancouver Island Construction Association (VICA) serve as crucial conduits for distributing CCDC documents, offering resources and support to ensure proper document use and seal application.

The Canadian Construction Association, as a national representative, champions the standardization of industry contracts. By promoting CCDC documents across Canada, the CCA helps align project practices and expectations within the construction industry. Through partnerships with CCDC, the CCA and partners like VICA, makes these documents accessible to members nationwide, providing a reliable means for contractors, owners, and consultants to utilize legally sound contracts that reflect industry best practices.

In addition to distribution, the CCA raises awareness about the importance of applying copyright seals to CCDC documents. As part of its mandate to uphold industry standards, the CCA informs members about the legal and practical implications of using unsealed CCDC forms. They advocate for compliance not only to protect copyright but also to reinforce the trust and clarity that standardized documents bring to contractual relationships in construction.

At the regional level, associations like VICA provide a more direct and personalized approach to supporting the industry’s use of CCDC documents. As an organization representing contractors, owners, and industry stakeholders on Vancouver Island, VICA not only facilitates access to these documents but also provides hands-on guidance through CCA for members on the proper use of seals. This includes training sessions, workshops, and sharing updates on industry regulations, helping contractors understand and navigate the legal requirements associated with these forms.

VICA also plays a vital role in distributing and explaining resources like Bulletin 23, which outlines the proper application of copyright seals. While this bulletin is currently undergoing updates, VICA’s guidance on the document remains an essential resource for members to ensure they are using CCDC documents correctly. As CCA and VICA update membership on changes to Bulletin 23, it will continue to emphasize the significance of seals and the consequences of improper use, promoting a better-informed construction community.

Both CCA and VICA advocate for adherence to copyright laws surrounding CCDC documents, and they inform members of potential legal risks associated with unsealed documents. CCDC actively pursues copyright infringement cases to enforce these standards, reinforcing the message that these seals are not optional but a critical part of contract integrity.

We also offer continuous education on updates to CCDC documents and the importance of the seal. With CCDC 2 – 2020, for instance, the addition of the seal affirms the contract as an unamended version of the standard form, unless changes are explicitly documented in supplementary conditions. These provisions are communicated by CCA and VICA to ensure all users understand that the seal signifies not only legal compliance but also contract authenticity.

In summary, the use of CCDC documents with appropriate copyright seals is more than a formality; it’s a safeguard for all parties involved in a construction project. By certifying that the documents are standardized and unaltered, the seal offers peace of mind that parties are working from a mutually agreed, unambiguous foundation.

Through our roles in distributing, educating, and enforcing standards, the Canadian Construction Association and the Vancouver Island Construction Association are instrumental in maintaining these high standards on Vancouver Island and across Canada’s construction industry. Together, we help promote fair, transparent practices that protect all project stakeholders, reinforcing the value of standardized contracts in a complex industry.

Join Us for a Spooky Night of Music and Fun!

October 2, 2024 (Victoria, BC) – Get ready to have a blast! On Thursday, October 17th, the Vancouver Island Construction Association’s (VICA) Young Builders Network (YBN) is throwing their annual charity music night, Builders in the Basement: Spooky Edition, to raise funds for the Help Fill A Dream Foundation.

We’ve got an awesome lineup of local talent ready to rock the stage, including:

• Standard Issue Pleasure Model
• Cold Fame
• Harvey Hann & the Bandit Band
• Trophy Dad
• DJ Steel Toes

“We’re so excited for another evening filled with music, dancing, and good vibes—all while supporting the Help Fill a Dream Foundation. Giving back to our community is super important to us, and what better way to do it than with a fun night of local music?” says Jayna Wiewiorowski, Chair of the Young Builders Network.

This year’s event will be a Halloween-themed celebration, so feel free to dress up or come as you are! Besides the amazing music, there will be networking, delicious food, a 50/50 draw, and some great door prizes. Tickets are only $30 each, and for a limited time, it’s “buy one, get one free”—don’t miss this chance!

“We’re thrilled to support our Young Builders Network with this music event for Help Fill a Dream. It’s a fantastic way for our industry to give back while having a great time!” says Rory Kulmala, CEO of VICA.

Want to help out? There’s still time to support the YBN Builders in the Basement, presented by Oceanview Mechanical, Mountain Peak Heating & Cooling, and Webb & Hamilton, through ticket purchases, sponsorship, or prize donations. For more details, reach out to Sarah Bartfi at memberservices.victoria@vicabc.ca or call 250-388-6471.

EVENT DETAILS
YBN Builders in the Basement
Presented by Oceanview Mechanical, Mountain Peak Heating & Cooling, and Webb & Hamilton
(Funds raised will go to Help Fill a Dream)
Date & Time: Thursday, October 17th
Tickets: Eventbrite
Location: The Wicket Hall

Dear Construction Communiuty,

We are deeply saddened by the tragic incidents that claimed the lives of two workers on construction sites in Nanaimo and Langford yesterday, September 25th. On behalf of the Vancouver Island Construction Association, we extend our heartfelt condolences to the families, friends, and colleagues affected by this devastating loss.

These tragedies serves as a somber reminder of the critical importance of safety and vigilance on our job sites. We stand united with the construction community during this difficult time and remain steadfast in our commitment to supporting initiatives that prioritize the health and safety of all workers.

Our thoughts are with everyone impacted, and we offer our full support to those grieving as we collectively mourn the loss of these two individuals.

Sincerely,

Rory Kulmala, CD, MBA, AScT, PMP | CEO

Vancouver Island Construction Association

The Vancouver Island Construction Association (VICA) is pleased to share a unique housing development opportunity in the municipality of North Cowichan. BC Builds, in collaboration with the District of North Cowichan, is seeking a developer or builder for a site at 9800 Willow Street in downtown Chemainus to construct new rental housing under the Province’s BC Builds program. The project will be owned and operated by the Community Land Trust.

Project Details

• Location: 9800 Willow Street, Downtown Chemainus

• Ownership: Community Land Trust

• Pre-zoned: Yes

• Parking: Onsite parking is not required; parking will be provided on a nearby lot owned by North Cowichan.

This is a small but promising site that has already been pre-zoned, simplifying the development process. Developers and builders are invited to explore the Property Opportunity Notice for this project and submit their proposals by September 29, 2024. The Notice includes all relevant details specific to this project and the BC Builds process overall.

About BC Builds

BC Builds was launched in February 2024 to address the challenges of developing new rental housing for middle-income households. Rising inflation, the cost of land, construction expenses, and high interest rates have made financing and building new rental housing increasingly difficult. BC Builds addresses these challenges by utilizing low-cost land, low-interest financing, grants, and accelerated project timelines to bring rental housing projects from concept to construction within 12-18 months. The program already has multiple projects underway across the province.

Learn More

• For more information about this development opportunity: Explore the Property Opportunity Notice

• For current housing development opportunities under BC Builds: Visit here

• To learn more about the BC Builds program: Visit the website

• To receive email updates on new BC Builds sites and current opportunities: Sign up here

This opportunity offers a chance to contribute to the creation of much-needed rental housing in the region.