Advocacy

Limitation: the following information is being shared as information for MCABC members and does not constitute and should not be considered as legal advice. It is important to note that the terms and conditions of any contract take precedence over any information contained below. We encourage all members to use their independent judgment or, as appropriate, seek the advice of qualified professionals. 

Vancouver, B.C. — Today, September 8, previously announced Canadian counter-tariffs came into effect on $28 billion worth of U.S. imports. The U.S. responded with plans to ban Canadian products from U.S. government contracts and block certain Canadian imports outright. 

While it remains to be seen how the situation will play out in the short and long term, there is no doubt that a prolonged trade dispute between Canada and the United States will have a significant impact on B.C.’s mechanical contracting industry.  

As we await further developments, we are sharing more information and member resources courtesy of the Mechanical Contractors Association of Canada (MCAC), in addition to those we shared two weeks ago. 

Important Considerations Regarding Contracts 

Amidst the ongoing trade dispute, members should be aware of the following contract considerations affecting both current and future projects: 

• For projects already underway (where the bid closing date was prior to the imposition of tariffs), it is critical that contractors review their existing contract language to determine whether there are any contractual provisions that deal with the issue of duties and tariffs. 

• • As an example of a duty provision, CCA-1, in GC 10.1.2, notes that Any increase or decrease in costs to the Subcontractor due to changes in taxes and duties after the time of the bid closing shall increase or decrease the Subcontract Price accordingly. 

• • Other contract forms may contain similar provisions, but it is important to also note and understand when the provision takes effect (i.e. taxes or duties will have come into effect after closing). 

• Contractors may also wish to explore or discuss with owners/prime contractors whether provisions such as force majeure clauses or change-of-law provisions address the issue of tariffs. 

• For those entering into a new contract, it is advised to work with suppliers to lock-in pricing, to mitigate the impact of price fluctuations. 

• Another consideration is the use of price escalation clauses, e.g. the required notice that would be necessary to adjust a contract price. 

As with any other change in contract price, contractors should also be aware of their insurance and bonding requirements and whether existing contract security is directly related to and affected by Contract Price. 

Documentation of Tariff-Related Price Increases 

With Canadian countermeasures expected to impact several products and materials in the mechanical industry, it is advised that members seek express reference to tariffs in any instances of price increases. 

While some standard-form contracts contain duty or change-of-law provisions, any price increases that do not reference tariffs will impose an unfair risk to contractors who may not be able to exercise those contract provisions. Citing tariff-related issues, such as the value of the Canadian dollar, transportation costs, or tariffs themselves, may provide an opportunity to exercise price escalation provisions. 

We encourage the industry supply chain to explore the available tariff-relief programs as the industry navigates the challenges brought on by US tariffs. 

As before, we recommend that members undertake all efforts to document and record the types of products affected by price escalation and relay this information to MCABC. 

Remissions Process 

A full list of products impacted by Canadian countermeasures is available through the dedicated Government of Canada webpage.  

The Department of Finance has implemented a remissions request process, through which companies can request a reprieve where goods cannot be reasonably sourced from within Canada or from non-US suppliers. 

Upon notification of a price increase, members should inquire whether an application for remissions has been made and request relevant documentation that demonstrates a particular product cannot be sourced from within Canada or non-U.S. suppliers. 

All efforts should be made to encourage the use of this remissions process, particularly when products or materials are not available from non-U.S. markets, or where alternative products would not meet Canadian safety certification standards. 

Next Steps

The escalating trade dispute remains a fluid and evolving challenge that member businesses must navigate on a daily basis. 

MCABC is actively monitoring the dispute’s impact on the industry, as well as broader construction activity and costs, and is advocating on behalf of industry to limit the dispute’s negative consequences. 

As always, we encourage MCABC members to reach out with any questions, concerns, or information they may have regarding the situation’s impact on their business.  

About MCABC

The Mechanical Contractors Association of B.C. (MCABC) is the only dedicated representative for the mechanical contracting industry in British Columbia—the industry with the largest share of skilled trades workers in the construction sector. As the connection to industry excellence for our diverse membership, we deliver education and professional development programs that enable high standards of practice and business success. Through advocacy and strong industry partnerships, we influence policy and regulatory development at all levels of government, advancing the interests of our industry and improving its ability to meet B.C.’s growing infrastructure demand.

Media Contact

Conor Brendan Dunne
Manager, Communications & Stakeholder Engagement

cdunne@mcabc.org
(604) 205-5058

Vancouver, B.C. — Today’s announcement from the federal government marked Canada’s economic response to the breakdown of trade negotiations between Canada and the United States last Friday. Given the potential impacts on our industry, we wanted to share the information below, including a summary of the announcement, available business supports, and a statement from the Mechanical Contractors Association of Canada (MCAC).

In addition to announcing today’s counter tariffs, the government also announced a $7.5 billion support package, including, but not limited to:

Supports for Businesses

Expanded Regional Tariff Response Initiative

• Cap on non repayable contributions will increase from $1 million to $3 million.
• Liquidity support will be available for up to $2 million, in addition to existing support for pivot or capital investment plans.
• Program delivery through Regional Development Agencies.

Business Development Bank of Canada Pivot to Grow

• Second $500m liquidity stream providing working capital to businesses facing cashflow shortfalls.
• Will be available to companies directly impacted by tariffs, regardless of sector.
• Loans range from $250,000 to $5 million, with interest only payments over 36 months.
• Annual revenue requirements for applicants lowered to $1 million.

Canada Strong Diversification Fund

• New stream of Strategic Response Fund, with an additional $2 billion in funding, expanded flexibility to support tariff impacted companies with shovel ready projects that support ongoing capital maintenance.

Expanding Large Enterprise Tariff Loan Facility

• Providing the flexible liquidity needed to bridge large employers by:
  • Increasing the size of liquidity supports from 24 to 36 months of liquidity needs
  • Increasing maximum loan term from 10 to 15 years

Other

Employees

• Extending the temporary measures to:
  • Waive the one-week waiting period
  • Allow receipt of benefits without first using up separation payments by one year
• Extending the temporary measure that provides an extra 20 weeks of regular benefits for long tenured workers by 8 months.
• Introducing a one-year measure allowing workers who have voluntarily left jobs are no longer penalized when they want to access EI (as long as their most recent job loss is through no fault of their own).

Employers

• Introducing new Workforce Retention and Retraining program, combining existing EI Work-Sharing program and Worker Retention Grant into a single streamlined program. Employers will be eligible for additional funds to cover training and administrative costs (up to $1,000 per participant).

More information on these supports is available here:

MCAC Statement

With today’s announcement, MCAC has offered the following statement:

In the face of an escalating trade conflict, the Mechanical Contractors Association of Canada (MCAC) recognizes the need to take a principled stand in the face of aggressive trade practices, and we remain committed to supporting a strong and resilient Canadian economy through the hard work of Canada’s mechanical, electrical, and plumbing contracting sector. At the same time, MCAC recognizes that any ongoing trade conflict will only serve to reduce investment in the North American economy through supply chain challenges and ongoing economic uncertainty, and the association remains supportive of efforts to end trade hostilities between Canada and the United States.

As an association, we will continue to advocate for the best interests of our members and our sector as the country faces economic headwinds because of this ongoing trade dispute.

Next Steps

As we work through this continuing process, MCAC and MCABC encourage members to get in touch with our office to share any concerns there may be about any particular product categories. The more information we have to support advocacy efforts in the weeks ahead, the better positioned our associations will be.

If you have questions or concerns regarding how these measures may impact your business, please contact the MCABC team.

As always, if there is anything else we can provide in the meantime, please do not hesitate to contact our office.

About MCABC

The Mechanical Contractors Association of B.C. (MCABC) is the only dedicated representative for the mechanical contracting industry in British Columbia—the industry with the largest share of skilled trades workers in the construction sector. As the connection to industry excellence for our diverse membership, we deliver education and professional development programs that enable high standards of practice and business success. Through advocacy and strong industry partnerships, we influence policy and regulatory development at all levels of government, advancing the interests of our industry and improving its ability to meet B.C.’s growing infrastructure demand.

Media Contact

Conor Brendan Dunne
Manager, Communications & Stakeholder Engagement

cdunne@mcabc.org
(604) 205-5058

Vancouver, B.C. — On June 4, MCABC presented to B.C.’s Select Standing Committee on Finance and Government Services, calling for targeted investments in Budget 2027 that support skilled workforce development and industry productivity and modernization.

Underscoring our industry’s pivotal role in B.C.’s present and future prosperity, we made three primary recommendations to the Committee:

On August 11, the Committee released its Consultation Report, which featured 81 recommendations to the Legislative Assembly ahead of Budget 2027. The Report reflects several MCABC priorities and includes two direct references to our recommendations regarding prompt payment regulations (p. 63) and productivity and modernization (p. 63).

These references represent meaningful recognition of two of MCABC’s three key asks. They point to the fact that MCABC was not merely listed as a consultation participant, but that our recommendations informed the Committee’s substantive discussion on the future of B.C.’s construction sector.

Of the Committee’s 81 official recommendations to Government, four speak directly to our industry’s priorities and interests:

Recommendation #45

“Publish and regularly update a ten-year infrastructure plan, including information on new capital projects, capital maintenance projects, and funding status.” (p. 66)

A regularly updated infrastructure plan would provide mechanical contractors with greater visibility into the Province’s capital pipeline, enabling better-informed decisions around workforce planning and development and investments in technology and innovation.

Recommendation #47

“Review BC’s business tax and regulatory framework, and reduce the small business tax rate to improve the competitiveness of small- and medium-sized enterprises…” (p. 66)

While the Committee did not specifically recommend MCABC’s proposed tax incentives, it did expressly record our proposal in the Report and subsequently recommended a review of B.C.’s business tax framework, laying a strong foundation for continued advocacy.

Recommendation #62

“Prioritize funding to support post-secondary institutions to meet local and regional workforce development priorities.” (p. 85)

This recommendation directly supports MCABC’s workforce development advocacy. In its discussions, the Committee specifically highlighted the skilled trades as a high-priority workforce and discussed ways to incentivize employers to take on apprentices.

Recommendation #63

“Advocate to the federal government to accelerate visa processing times and provide greater flexibility regarding Provincial Attestation Letters to help address labour shortages in high-priority sectors across the province.” (p. 85)

While framed primarily around visa processing and PALs, this recommendation reflects the Committee’s broader recognition that immigration policy will play an important role in addressing workforce challenges in high-priority industries such as ours.

Overall, the Report represents a favourable outcome for B.C.’s mechanical contracting industry. MCABC is named twice in the Report, two of our three recommendations are specifically referenced, and four of the Committee’s final recommendations to Government provide meaningful support for our industry’s advocacy priorities.

As we move closer to Budget 2027, MCABC will continue to engage with government to ensure the Province’s capital and development plans support our industry’s current and future needs and enable our members’ long-term business success.

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About MCABC

The Mechanical Contractors Association of B.C. (MCABC) is the only dedicated representative for the mechanical contracting industry in British Columbia—the industry with the largest share of skilled trades workers in the construction sector. As the connection to industry excellence for our diverse membership, we deliver education and professional development programs that enable high standards of practice and business success. Through advocacy and strong industry partnerships, we influence policy and regulatory development at all levels of government, advancing the interests of our industry and improving its ability to meet B.C.’s growing infrastructure demand.

Media Contact

Conor Brendan Dunne
Manager, Communications & Stakeholder Engagement

cdunne@mcabc.org
(604) 205-5058