BC's large building projects worth $92 billion

British Columbia now has a record 711 large building projects worth $91.6 billion on its major projects inventory, an $8-billion increase from last September.

It includes:

- Prince Rupert's $500-million port expansion.

- $20-million Holt Renfrew redevelopment at Pacific Centre Mall in Vancouver.

- Kinder Morgan's $1.6-billion TMX pipeline between Valemount and Burnaby.

The provincial Ministry of Economic Development released the inventory's latest update on Friday. It lists projects worth $20 million or more in the Lower Mainland and $15 million or more outside the Lower Mainland.

"This is evidence, basically, that the building boom we're witnessing is here to stay for at least the medium term," Colin Hansen, Minister of Economic Development said in an interview.

However, the inventory was released on the same day Statistics Canada reported its latest non-residential construction price index. Its figures show that Vancouver's score on the index rose 7.6 per cent, the second biggest jump in Canada after Calgary which saw construction prices rise eight per cent.

Hansen, however, said he was relieved that the index did not show cost escalations of 20-per-cent to 30-per-cent that can occur in hot markets.

Wayne Hendersen, senior vice-president at Dominion Construction in Vancouver, said this is the busiest he has seen the construction sector and a shortage of skilled workers is keeping him from bidding on all the projects it would like to.

Dominion won the right to build the $178-million Olympic speed skating oval at Richmond, but had to forego bidding on the $77-million expansion of BCIT's aerospace campus at Vancouver International Airport.

"It's a bit frustrating to not have the ability to get involved in some of the projects we'd like," Hendersen said.

It is also difficult for contractors to make money when labour shortages and material price increases are pushing up costs. Hendersen said that's not a problem when jobs go smoothly, but "most times that is not the case."

"I think there is a perception that contractors are getting rich because they're so busy," Hendersen said. "My experience is that we haven't had this much volatility and this much risk in the time I've been in construction."

Keith Sashaw, president of the Vancouver Regional Construction Association, said the swelling Major Projects Inventory is still good news even if it is challenging.

"It's continuing to demonstrate the . . . underlying strength of B.C.'s economy," Sashaw said.

And Philip Hochstein, president of the Independent Contractors and Business Association of B.C., added that contractors still have some unused capacity. He said building designers are helping by creating simpler, more buildable plans.

"We're close [to maximum capacity]," Hochstein said, "But we haven't said stop yet."

(prepare by Derrick Penner/Vancouver Sun)