VideoEnergy & Economy
Canada's soaring construction costs pose a bigger threat to Carney's build agenda than Trump
Non-residential construction prices rose 45% in six years, and one infrastructure expert warns that overruns could stall the pipelines, ports and mines Ottawa is counting on.
Summary
Mark Carney says Canada can give itself far more than any foreign government can take away, and this video argues the biggest bill comes from home. Writing in the Globe and Mail, University of Toronto infrastructure expert Matti Siemiatycki cites Statistics Canada data showing non-residential construction prices rose 45% in the six years since 2020, double the rate of inflation.
Big projects show the strain. A Toronto subway kilometre cost about $200 million in 2001 and over $2.2 billion on the Ontario Line, while the Mississauga mega-hospital's $13.9 billion contract costs about 2.5 times more per square foot than Humber River's 2011 project after inflation. Coastal GasLink's budget rose from $6.2 billion to $14.5 billion, yet LNG Canada in Kitimat shows Canada can still build big.
TC Energy's 2023 report on Coastal GasLink blamed skilled-worker shortages, underperforming contractors, disputes and weather, not paperwork. The video argues these are Canadian problems with Canadian fixes. Globe columnist Tony Keller urges measure twice, cut once: detailed design and early engagement, which let projects build quickly afterward. Reliability, the video says, is a middle power's real currency.
Key points
- Non-residential construction prices rose 14% from 2014 to 2020, then 45% from 2020 to 2026.
- Toronto subway cost per kilometre: about $200 million in 2001, versus $2.2 billion or more on the Ontario Line.
- Coastal GasLink: a $6.2 billion budget and a $14.5 billion final cost, $8.3 billion over.
- Mississauga mega-hospital: a $13.9 billion contract over 30 years.
- Woodfibre LNG costs are up 73%.
- LNG Canada has employed more than 50,000 Canadians.
Questions answered
How much have construction costs risen in Canada?
The video cites Statistics Canada figures showing non-residential construction prices rose 14% from 2014 to 2020 and 45% from 2020 to 2026. That increase is double the general rate of inflation, and the video says prices have climbed roughly three times faster in the latest period than in the one before.
Why did the Coastal GasLink pipeline cost so much more than planned?
The video says Coastal GasLink's budget was $6.2 billion but its final cost reached $14.5 billion. TC Energy's 2023 cost report blamed skilled-worker shortages, underperforming contractors, contractor disputes and weather, not paperwork, which the video presents as evidence that cost problems are not only about red tape.
What is the Pacific Link pipeline?
Pacific Link is a proposed pipeline from Alberta to the British Columbia coast. Carney and Alberta Premier Danielle Smith announced it in Calgary on July 2, 2026. On October 1, Ottawa designated it a project of national interest in Fort McMurray, the first project listed under the Building Canada Act.
What does measure twice, cut once mean for major projects?
Globe columnist Tony Keller uses the carpentry phrase to argue that major projects succeed through deliberate, detailed design and early engagement, which lets them build quickly afterward. The video says rushing projects through and handing too much to contractors have both failed, and so has rushed Indigenous engagement.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work