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Columnists
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Stimulus funding deadline
with Phil Moon Son Guest columnist Monday, June 21, 2010 Previous columns
One of the strategies by the federal government during the early period of the economic downturn was to invest heavily into infrastructure development all across this country including the territories.
More than $6 billion in total was invested across Canada. In the Northwest Territories, this included just under $10 million in stimulus funding for more than 24 projects worth nearly $17 million and $5.8 million for three projects worth just under $13 million in Nunavut. Road construction, which is one of the most challenging components of infrastructure development in the Northwest Territories and Nunavut, is one just one example of the types of projects funded under these programs. It is also critical to the development of our territories and subject to potential construction delays due to the unique climatic characteristics of the North. Over the years the Government of the Northwest Territories and the Government of Nunavut have allocated significant resources and funds for various infrastructure development projects, however allocating resources is a lot easier then actually turning the funding into shovels in the ground. Currently various governments have truly not implemented all of their funding for construction projects. Jack Rowe is the president of Rowe's Construction, a truly Northern company that has been a member of the Construction Association for many years and is currently a board member. Rowe comments that, "the call for future federal funding for infrastructure renewal and development may be undermined should a number of projects remain incomplete by the March 2011 deadline. The Construction Association encourages the GNWT and other governments to issue tenders for bids as early as possible to ensure that funding does not lapse." Michael Atkinson, President of the Canadian Construction Association, recently stated that, "federal funding for stimulus projects will end by March 31, 2011. The federal government has been clear that there will be no extension to these programs and it will only cover its share of project costs up to the deadline and not beyond." The construction sector must recognize, similar to other jurisdictions, any project funding that exceeds March 31, 2011 may experience significant funding complications. Many contracts all across Canada have a liquidated damages clause in there agreement to recover costs from contractors if a project exceeds the March deadline. The Construction Association will monitor these developments and work with the various governments and organizations to ensure the construction sector is fully informed and engaged with this stimulus funding deadline.
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