Canadian Government to halt infrastructure spending on March 31, 2011

Tuesday, 20 April 2010 14:12:38 (GMT+3)   |  
According to a recent report by Canada's Parliamentary Budget Officer, a mass influx of infrastructure projects are set to come on line in the upcoming months, however some are concerned that a number of these projects will be unfinished by March 31, 2011- the day federal funding for projects undertaken a part of the government's Infrastructure Stimulus Fund will come to a screeching halt.

Through Canada's Economic Action Plan, the federal government established a $4-billion Infrastructure Stimulus Fund that provides funding to provincial, territorial, municipal and community construction-ready infrastructure projects. The Infrastructure Stimulus Fund complements existing federal infrastructure funding by focusing on short-term objectives for economic stimulus.

The Canadian Contractors Association (CCA) has since issued a cautionary warning to potential bidders, advising that they could potentially bare financial accountability for portions of projects unfinished by that deadline.    A number of cities throughout Canada have since begun inserting clauses into contracts, stipulating the out-of-pocket expenses contractors will need to absorb should construction projects need additional time for completion.


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