Complexity, delay risks and workforce development all need to be addressed.

In its most recent budget, the Canadian government allocated $81.8 billion over five years for the country’s defence and security, marking the largest defence investment in decades. Longer term, the government pledged to increase defence spending to 5% of gross domestic product by 2034, which would work equal $150 billion annually.

Much of that investment will go to recruit and retain Canadian Armed Forces (CAF) members and to purchase equipment including aircraft, submarines and combat vehicles. But as much as $100 billion is also required for less visible but essential things like training and maintenance facilities over the next 15 years.

The construction of those facilities will take time, and time is already running short. The first of Canada’s 12 new submarines, for instance, is due to arrive in 2035. In the world of design and construction, that’s not far off.

Canada faces some real challenges when it comes to meeting these ambitious goals, but it can be done with the right planning and partnerships.

Project cost escalations hit a peak during COVID-19, but the cost of building materials and labour continue to increase at a faster annual rate than they did prior to the pandemic. Tariffs haven’t helped. Ten years ago, for instance, the average cost to build a hospital in Canada was just under $1,000 per square foot. Today, the average cost is just over double that.

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