“We are absolutely in the midst of an infrastructure moment,” said Matti Siemiatycki, director of the Infrastructure Institute at the University of Toronto. “We’ve actually been in a moment for the last 10 years, but what’s different now is the balance between talk and action has shifted, and that shift is becoming more pronounced. There’s a real impatience and a desire to move quickly and at scale,” he added.

Ontario’s ambitions are building by the day. Where billion-dollar megaprojects once made for big headlines, it’s more common to see announcements made for initiatives that are orders of magnitude larger. “Now, we’re into $5 billion and $10 billion projects, and they’re being talked about as if they’re routine, which signals a fundamental change in both expectations and delivery pressure,” said Siemiatycki.

This is no longer a question of whether Ontario will build, but whether it can build fast enough – and effectively enough – to meet the scale of its own ambitions. This mounting scale and urgency are being driven by more than traditional planning cycles. Geopolitical shifts, trade pressures, and climate change challenges have underscored the value of reliable infrastructure systems (e.g., transportation, energy, communication, water, and sanitation) in supporting a resilient and self-reliant economy.

“There’s a confluence of goals to which infrastructure is being seen as the solution,” said Steven Crombie, the senior director of public affairs at the Ontario Road Builders’ Association. “Transit, energy, housing, state of good repair – all these demands are converging over the next decade, and they’re all competing for attention at the same time.”

Colliding priorities

The mission for Ontario’s infrastructure is two-fold: maintaining aging assets while expanding capacity to meet future demand. A glance across the pipeline reflects that dual focus on expansion and renewal – from the construction of Highway 413 and the Bradford Bypass to the extension of the Yonge North Subway line, potential tunnelling along Highway 401, and the creation of key trade corridors in the Province’s Ring of Fire. The result is a system being asked to do two things at once – expand for the future while catching up on the past.

Rehabilitation continues to dominate the workload as aging infrastructure from the 1970s and 1980s comes due for repair and replacement, placing ongoing strain on available resources. From her vantage point as vice president of Tomlinson Infrastructure, Graziela Girardi says this attention to infrastructure asset renewal is both necessary and unavoidable.

“Much of the infrastructure was built in the ’70s and ’80s, so there’s been a strong focus on repairing and replacing those assets, and that work is absolutely necessary, particularly as those systems continue to age,” she said. “If the budget does not keep pace with the need, repairs get deferred, conditions worsen, and the long-term cost only increases.”

In short, says Siemiatycki, the tab is finally landing on Ontario’s aging infrastructure. “Expansion projects are important, but maintaining existing infrastructure is just as critical, particularly in rural and northern Ontario where options are limited,” he said. “Highways like Highway 11 and Highway 17 are vital economic corridors, and any disruption can have significant ripple effects on trade and the broader economy, especially for goods movement. Ensuring these assets remain in a state of good repair is essential.”

In many cases, that work is less visible, but no less critical, than the headline-grabbing megaprojects. There’s another layer to Ontario’s infrastructure moment. With record-breaking weather events becoming more of the norm, there is an escalating need to prepare Ontario’s assets for the climate challenges to come.

“These capital plans are in the billions of dollars and represent tens, if not hundreds, of billions in infrastructure needs just related to climate adaptation,” said Crombie.

Opening the wallet

Ontario may have big plans, but some wonder if its funding matches its ambitions, particularly given the industry’s rising costs. As Crombie notes, the Ministry’s rehabilitation funding has remained essentially flat at about $1.5 billion annually, “while construction inflation has significantly outpaced the consumer price index,” creating a widening gap.

In real terms, that means today’s funding is delivering less infrastructure than it did a decade ago. Less work can be done today, even if nominal budgets appear stable.

“There’s broad recognition that this needs to be addressed, not only by increasing the budget, but by indexing it to construction costs going forward,” said Crombie. Without that adjustment, the pressure doesn’t disappear – it shifts downstream, where projects are delayed, scaled back, or forced to absorb additional risk.

Deciding where to start

Ontario faces a near-endless list of aging assets in need of repair alongside growing pressure to build new infrastructure, creating difficult prioritization decisions. Choosing which projects to fund and pursue is a tension point in and of itself – and one that will likely persist over the coming years, as trade-offs become unavoidable.

“Infrastructure entails making hard choices; if you allocate scarce resources to one project, it means you’re not building another, and each project confers benefits on some people and costs on others,” said Siemiatycki. In that environment, prioritization becomes as important as funding itself.

Every investment is also a trade-off, he continues, “and just because something is big doesn’t mean it’s necessarily good.” These difficult trade-offs can motivate governments to extend consultations or move decisions through multiple layers of review to reduce the risk of making the wrong move.

“The real value comes from building the right project, in the right place, and ensuring it connects with the broader system, rather than simply building for the sake of it,” said Siemiatycki. “That’s what ultimately delivers the benefit.”

Adapting procurement models

If this is an execution moment, then how projects are delivered becomes just as important as which projects are selected. Ontario’s infrastructure moment is prompting a fresh look at established procurement models to identify where delivery strategies can be strengthened for all parties.

The industry is seeing this shift in action. Over the years, project owners have shifted back and forth between design-bid-build and P3 models, such as design-build-finance-maintain, as priorities change. Now, says Siemiatycki, the industry is moving again. “What we’re seeing more recently is a move toward more flexible approaches like progressive design-build and alliance models,” he said.

Construction manager/general contractor (CMGC) models are emerging as a popular choice for large projects. It’s a more collaborative approach, Crombie explains, where the construction manager works closely with the client to establish more accurate pricing.

We have found ways in Canada to make it slow and painful to deliver just about everything.

Matti Siemiatycki, Infrastructure Institute, University of Toronto

“This reduces the gap between initial price expectations and final project costs,” he added, which helps to manage risk on both sides. These models aren’t just about efficiency – they reflect a broader shift toward shared accountability in delivering complex infrastructure.

Still, says Siemiatycki, procurement models are only as effective as the people behind them. “We’ve been so focused on the delivery model, as if picking the right model will take care of everything,” he said, “but it’s about how you create trust, manage relationships, and how decisions are made in real time. Those are skills that haven’t necessarily been emphasized.”

For this reason, Siemiatycki believes there are benefits to creating more leadership training opportunities for project leaders, such as the one he is on the verge of launching at the University of Toronto. “You obviously need technical proficiency, but alongside that, you also need leadership skills,” he said. “Building that capacity would go a significant way toward improving project delivery, especially on complex projects.”

A call for consistency

There are several factors that make Ontario’s infrastructure moment a difficult one to meet, particularly from a business perspective. For one, says Crombie, an inconsistent pipeline of projects coming to market makes it difficult for road builders and other infrastructure stakeholders to maintain the teams and resources needed to pursue new opportunities.

“What government can do in the very short term is ensure that there is a steady pipeline of projects that continue to come to market – and of all sizes and of all regions – so that the industry itself remains robust,” he said, emphasizing predictability. For contractors, that predictability isn’t a luxury – it’s what allows them to invest in people, equipment, and long-term capacity.

“When we have ebbs and flows in investment, organizations are forced to upsize and downsize rapidly,” said Crombie. “And then what happens is that when projects come to market, they’re not as equipped as they otherwise could have been.”

Diversity of projects is equally important, says Girardi, especially when it comes to ensuring investments are distributed evenly throughout the province and not concentrated in one region. “There’s a lot of investment happening, especially around the GTA, but outside of that, the flow of work is much less consistent – like in Eastern Ontario, where we haven’t seen a steady pipeline of projects in recent years,” she said.

“Sustainability of work is critical. Companies need a steady flow of projects to maintain their operations, their workforce, and their presence in a region. If you’re only building one bridge a year, that’s not enough to sustain a business. You can’t attract and retain people in the industry if the work isn’t stable,” she added. “When things slow down, people leave – and when projects return, companies are forced to rebuild their teams.”

Bottlenecks and speed bumps

Even with stronger alignment and a more consistent pipeline, significant barriers remain. Pipeline inconsistencies and the resulting labour shortages are only some of today’s industry restraints. As many in the field can relate, the system is bogged down by increasingly multiplying and duplicating rules and regulations. This often leads to delays, disagreements, or decision paralysis when it comes to factors such as permitting, approvals, environmental considerations, and Indigenous engagement, all of which take time.

Individually, these steps may be justified – but collectively, they can slow progress to a pace that no longer matches the urgency of the moment. “We have found ways in Canada to make it slow and painful to deliver just about everything,” said Siemiatycki.

Further speed bumps surface when funding is available, but the projects aren’t ready to go, creating mismatches between capital and execution. Or when stakeholders lack coordination in the early phases of work, resulting in problems with design and planning that inevitably show up later down the road.

“If enough time isn’t spent on design, those issues show up during construction,” said Girardi. “Then, you’re stopping work, asking questions, and trying to resolve problems in real time – which slows everything down and adds cost.”

Full disclosure

Lack of information can also impede Ontario’s infrastructure plans. And whether because of poor coordination or the realities of working on decades-old infrastructure, Girardi says it is a familiar issue. In an environment where timelines are tight and margins are under pressure, those unknowns become more than technical challenges – they become business risks.

We’ve been so focused on the delivery model, as if picking the right model will take care of everything, but it’s about how you create trust, manage relationships, and how decisions are made in real time. Those are skills that haven’t necessarily been emphasized.

Matti Siemiatycki, Infrastructure Institute, University of Toronto

“When there’s less information available at the bidding stage, whether it’s soil conditions or what’s underground, you’re forced to make assumptions,” said Girardi. “If those assumptions don’t hold, then you’re dealing with additional costs, delays, and potential disputes.”

Unpredictability is a factor in any project, but it can be more pronounced in the province’s denser, more urban environments. Using roadworks in Toronto as an example, Girardi said, “As soon as roadwork begins, crews often encounter conditions that were not identified in advance, such as utilities or other underground constraints. Each time this happens, work must pause so the team can assess the situation and coordinate with multiple stakeholders, which creates delays across the project.”

The answer is in alignment

Ontario’s infrastructure moment is a call for stronger collaboration among all its construction stakeholders. Promisingly, there are signs that industry and government are coming together to address the roadblocks and speed bumps that may impede successful outcomes. Speaking from his public-sector dealings at ORBA, Crombie said, “There’s strong alignment right now between ORBA, senior ministry officials, and the political side of government on the need for continued infrastructure investment.”

For one example, he explains, collaboration on amendments to the general conditions, dispute resolution processes, or health and safety management.

“There are many areas where we work closely with senior officials, but when we have alignment between ministry officials, bureaucrats, and political leadership, it’s fantastic. It’s an opportunity ORBA shouldn’t pass up, and I believe they’ve been working very hard to build that alignment.”

With stronger alignment comes stronger, longer-term planning. This, perhaps above all else, is key in a time of unprecedented infrastructure demands, where coordination matters.

“Infrastructure is kind of like chess – you have to be thinking three moves ahead,” said Siemiatycki. “If you approach it one move at a time – making announcements for political reasons or short-term convenience – you might get a quick win and a bit of a sugar high, but just like in chess, the person thinking three moves ahead is going to come out on top. Infrastructure has to connect.”

Sequencing is no doubt key – as road builders can attest. Even when new roads or road repairs may benefit a community, poor sequencing can result in rework and delays that sour public opinion.

“The thing that drives people crazy about road building is when there’s no coordination,” said Siemiatycki. “They repave your street one year, then three months later, the hydro crew comes in, followed by sewer work, then gas. Suddenly, you’ve had three cuts in six months for different projects, and you’re left wondering why it wasn’t coordinated in the first place.”

Inspiration from outside our borders

Ontario is far from alone in its infrastructure needs. Within Canada and beyond its borders, there is a push to hone in on the right projects, procurement processes, and delivery methods to achieve similar objectives – and often under similar pressures.

Companies need a steady flow of projects to maintain their operations, their workforce, and their presence in a region … You can’t attract and retain people in the industry if the work isn’t stable. When things slow down, people leave.

Graziela Girardi, Tomlinson Infrastructure

To that end, there is a benefit to looking outside our borders – be it across the pond to the UK, New Zealand, Hong Kong, Spain, France, or Turkey – for lessons in infrastructure planning and delivery, particularly in how systems are structured. The differences are less about technical ability, says Siemiatycki, and more about planning culture, how disputes are handled, and how technical expertise is structured within institutions. That said, there is no single model to copy, as each region adapts to its own context.

“There are a number of lessons to be learned, but again, there are reasons why our system has developed over generations,” said Siemiatycki. “We likely need a Canadian solution to address the problems we’re facing.”

What we need to get right

The moment is here, and the clock is ticking. As Ontario pushes ahead with the construction and rehabilitation of its vital infrastructure, it will need to focus on strategies, expertise, and streamlined processes that support solid planning and long-term perspectives, ensuring projects connect and deliver value. The challenge isn’t identifying what needs to be done – it’s executing consistently across a system under increasing strain. It’s no small ask, but the industry is no stranger to rising to the challenge.

“I’d say that, without a doubt, the industry is capable of rising to the challenge,” said Crombie. “At the core of every successful construction organization is the ability to adapt. Contractors deal with a wide range of variables that are often beyond their control, such as fluctuations in project volume and broader market conditions. Managing that uncertainty is built into the fabric of the industry, and it’s what gives me confidence that we’ll be able to navigate the challenges ahead.”

Both Siemiatycki and Girardi share that same confidence in the industry’s ability to meet the moment, citing its continual evolution and growing sophistication.

“There is far more structure, documentation, and disciplined project management in place today than there was 20 years ago,” said Girardi, adding, “The industry has become much more sophisticated, and we have a strong and knowledgeable workforce on the contractor side. I am confident the industry is well equipped to meet the challenges ahead.”

The capacity exists within the industry. Whether the systems around it can match that capacity will ultimately define what this moment becomes.  

“Aggregate is the basic foundational ingredient to everything we build,” said Sharon Armstrong, executive director of the Ontario Stone, Sand & Gravel Association (OSSGA). “It’s in our homes, it’s in our hospitals, it’s in our roads.”

That’s just the aggregate. If a kilometre of new road is paved with hot mix asphalt (HMA), up to 12,960 tonnes of asphalt may be required. Depending on the vehicles used, this amounts to anywhere from 370 to 650 truckloads. Then there’s the equipment needed to quarry the aggregate. Some of it is hauled to the job site. Other trucks take aggregate to the asphalt plant to create asphalt pavement. That product is then transported to the job site, where a range of heavy equipment puts the road together.

All these elements, and many more, make up the supply chain that builds Ontario’s roads. It’s a supply chain that most people never see, but that matters nevertheless. And it matters more than ever, now that the Province of Ontario has committed $31 billion to expand the province’s road network to reduce highway gridlock. This investment represents a significant opportunity for Ontario’s road building industry.

Aggregate is very heavy. That’s why our industry motto is, ‘Don’t make gravel travel.’

Sharon Armstrong, Ontario Stone, Sand & Gravel Association

“I think it will certainly create a lot more projects for our members, especially contractors,” said Donn Bernal, principal at Corfinium Solutions and technical advisor for the Ontario Road Builders’ Association (ORBA). “It’s all new work versus the standard renewal projects that are typically in place.”

However, it remains to be seen whether Ontario’s supply chain can meet the demands of this “infrastructure moment.” That demand comes at a time when many aggregate quarries are running out of materials, while opening new ones is a costly, lengthy, and complex process that can take a decade or more just to secure a licence.

The scale of demand

Ontario has fallen behind in repairing and expanding its infrastructure for decades. This is why the 2026 Ontario Budget has allocated more than $210 billion over 10 years toward infrastructure projects. Besides the $31 billion for roads, the province has earmarked $61 billion for public transit and $56 billion for healthcare infrastructure.

“We are in a situation right now where we are rebuilding,” said Armstrong. “We are looking at creating the infrastructure we need to repair what’s been done in the past, and to grow and become a stronger province in the future.”

When it comes to the state of Ontario’s highways, doing nothing is not an option. “The costs of gridlock are real,” reads the 2026 Ontario Budget document. “The Canadian Centre for Economic Analysis estimates that the economic and social impact of gridlock in Ontario was $56.4 billion in 2024, and could potentially rise to $108 billion annually by 2044 if no action is taken.”

Meeting this demand will require mobilizing materials on a massive scale, at a time when current demand is not trivial. Currently, the Ontario aggregate industry extracts and processes about 164 million tonnes of material annually, while supporting 41,000 direct and indirect jobs. On the paving side, Ontario uses between 7.4 and 8.2 million tonnes of HMA every year, with the broader road building sector employing 56,000 workers.

Looking ahead, the material requirements to meet the province’s infrastructure moment will test the limits of existing reserves. “Some estimates have us needing approximately four billion tonnes of aggregate over the next 25 years,” said Armstrong.

Supply chain realities: moving mountains and managing binders

For road builders, acquiring the necessary aggregate (and other materials) for asphalt pavement is the obvious hurdle. The hidden pressure point lies in the logistics. The closer these materials are to the job site, the better the economics and timing – and the reverse is equally true. This is the problem being faced by Ontario road builders, particularly when it comes to sourcing aggregate. The Greater Toronto Area alone consumes over 50 million tonnes of aggregate annually.

“Many of the pits and quarries in the area, especially in the GTA, are being depleted,” said Bernal. “This means that the aggregate needs to be obtained further away, which increases transportation costs and possibly [increases] the price of the material as demand grows.” For contractors, this means higher delivered material costs and increased pressure on project budgets.

Unfortunately, it can be difficult to open new quarries due to government regulations and resistance to new pits and asphalt plants by local communities. It can routinely take up to a decade to secure a licence, followed by additional years to acquire the necessary operational permits. “And if you’ve got neighbours nearby, certainly they’ll fight it,” said Bernal.

Right now, there are more than 21,000 truckloads of aggregate moving across Ontario on any given working day. As sources move further away, contractors face longer lead times and less flexibility in scheduling work. The greater the haul distance, the more it adds to project costs. In fact, OSSGA data indicates that it would consume approximately 2,624,000 extra litres of diesel fuel annually if every aggregate truck had to drive just one extra kilometre to a job site.

“Aggregate is very heavy,” said Armstrong. “That’s why our industry motto is, ‘Don’t make gravel travel.’ Traveling longer distances is expensive in terms of diesel fuel. But it’s also important due to greenhouse gases.” These logistics challenges can directly impact paving timelines and crew productivity on active job sites, particularly on projects with tight schedules and limited work windows.

Beyond aggregate, the other vital component of the paving supply chain is asphalt cement. Because asphalt cement is a petroleum product, its availability and price are tethered to broader global refining markets and competing demands for fuel. Given ongoing global geopolitical uncertainty, prices for asphalt cement are likely to remain volatile. Variability in binder pricing also makes it more difficult for contractors to price work and manage risk. Ultimately, these pressures show up on projects as higher costs, tighter schedules, and reduced margins. In some cases, material availability and haul distance can also affect which contractors are able to competitively bid on projects.

Recycling to the rescue?

One way contractors are working to offset supply pressures is through increased use of recycled materials. “Let’s say a municipality decides to take down a bridge,” said Armstrong. “They will often do the demolition. Then, using portable crushers on site, they will crush that material to create recycled aggregate and use it right in the project.”

In Ontario, recycled aggregate reportedly represents roughly seven per cent of all materials used. Exact volumes are difficult to determine due to materials being crushed and reused directly on demolition/construction sites. In road building, the same recycling approach is applied to old asphalt that has been removed prior to repaving. The resulting product is called recycled asphalt pavement (RAP), which has faced significant regulatory and public image issues due to a negative report by the Auditor General of Ontario.

“Since the AG report back in 2016, the receptiveness to RAP has certainly dwindled to the point that many contractors have either reduced or removed it from projects,” said Bernal. “However, I think we’re starting to come back around to it now that we’ve got newer testing that can help evaluate recycled mixes better.” To achieve long-lasting pavements that use RAP, asphalt producers are experimenting with advanced chemical formulations to make the resulting pavement durable in all seasons. “To get that balance, you have to be innovative,” said Bernal.

For contractors, recycling can help reduce reliance on virgin materials, but only if specifications and acceptance continue to evolve.

Supply chain strength determines success

The success of Ontario’s infrastructure plans will be shaped by its supply chains. In the areas of aggregate and asphalt cement, these supply chains are already under stress. Still, there are ways to help the situation. When it comes to aggregates, streamlining the quarry application process could help increase supply. “Right now, the time to get a licence is too long,” said Armstrong. “We need to be more nimble, and in order to do that, we need to take less than 10 years to get a new licence.”

Meanwhile, realigning project procurements so that many asphalt plants could supply materials would help. “Doing this would allow more small and regional plants to help out,” said Bernal. “If we are having an infrastructure boom, such a change would allow more contractors to participate.”

One thing is certain: Without a strong and responsive supply chain, Ontario’s infrastructure goals won’t be limited by planning – they’ll be limited by what can actually be built, and at what cost. As Ontario prepares to build for the next generation, the strength of its roads will depend entirely on the strength of the foundation beneath them.

Municipalities are already managing these pressures on the ground. A 2024 report by the Association of Municipalities of Ontario (AMO) estimates that infrastructure renewal or new construction will top $290 billion over the next 10 years as jurisdictions across the province accommodate population growth, asset management, and climate adaptation. This tally includes $150 billion for rehabilitation and $100 billion for expansion. For municipalities, that translates into sustained, high-volume delivery across nearly every asset class.

It’s not all high-profile roads, tunnels, and underground initiatives, either. While provincial megaprojects may dominate headlines, the volume and frequency of work sits heavily on the municipal side, where projects are smaller in scale but ongoing and directly tied to how communities function.

“The municipal budgets are enormous,” said Patrick McManus, executive director of the Ontario Sewer and Watermain Construction Association. “The regional governments plus the City of Toronto have larger capital programs than the MTO every year.”

Feeling the pressure

It’s little surprise that Ontario’s major hubs are feeling this demand. At the City of Toronto, Jennifer Graham Harkness, chief engineer and executive director of engineering and construction, notes that the city invested in delivering nearly $2 billion worth of infrastructure projects in 2025 alone.

“We are absolutely in an infrastructure moment,” she said. “We have significant state-of-good-repair needs, while at the same time delivering infrastructure to support growth – all within a fully built-out, highly constrained environment.”

Delivering in that environment is not just about scale – it’s about precision, coordination, and timing. For Toronto, the transportation priorities are centred on maintaining and modernizing an already built-out system while improving how people move through it. That includes state-of-good-repair work across more than 5,600 kilometres of roads and roughly 900 bridges and culverts, alongside efforts to ease congestion through traffic signal optimization, transit priority measures, and construction sequencing.

When you open up a road, it’s like spaghetti underground. You’re digging around gas lines, water lines, electrical lines, and fibre optics. It’s a dog’s breakfast down there.

Patrick McManus, Ontario Sewer and Watermain Construction Association

At the same time, the city is advancing safety through its Vision Zero plan, expanding cycling infrastructure, and supporting major transit builds such as the Ontario Line and Scarborough Subway Extension – all while managing construction impacts in a city where available space is limited and disruption is highly visible.

The Regional Municipality of York is also feeling the pressure – particularly as it moves to accommodate up to 2.06 million people and 989,200 jobs by 2051. Like many jurisdictions, York Region is managing shifting priorities between growth and rehabilitation, with asset management taking on an increasing share of available funding. “Ten years ago, about 15 per cent of transportation spending was on asset management and 85 per cent on growth,” said Brian Titherington, director, Transportation Infrastructure Asset Management for York Region. “Today, that’s closer to 30 per cent on asset management – and in 10 years, we expect that to flip.”

Within every municipality, infrastructure work spans both visible and underground infrastructure, from roads and bridges to traffic signals, culverts, and guide rails. Yet, as McManus points out, the most critical work often happens below grade, where systems must be in place before any vertical development can proceed. “It always has to be first,” he said. “Everything is centred around getting water, wastewater, and electricity in the ground before anything else can happen.”

It’s a sequencing reality that shapes every new project, whether it’s a new subdivision or urban intensification, where existing systems are frequently pushed to their limits. “We often run into situations where there isn’t enough water or sewer capacity for high-rises,” said McManus. “Before you can build, you have to upgrade the system and make sure the treatment plants can handle the demand.”

Aligning with provincial plans

Municipal infrastructure planning doesn’t happen in isolation – it is tightly linked to provincial priorities and timelines. In York Region, this alignment is formalized and embedded into long-range planning through the Transportation Master Plan, which includes major transit investments like the Yonge North Subway Extension while advocating for further bus rapid transit expansion. At the same time, the region is working with the province on projects such as the Bradford Bypass and Highway 413, including the local road and interchange improvements needed to support those corridors and ensure they function within the broader network.

In Toronto, that provincial alignment is shown at scale. The city is delivering one of the largest municipal capital programs in the country while partnering with the province on major transit expansions. At the same time, it continues to invest in state-of-good-repair across roads, bridges, and transit infrastructure, while managing congestion and coordinating construction in a fully built-out environment. This includes aligning timelines, sequencing projects, and ensuring that work across agencies supports a shared outcome. The result is a system where provincial investments are not just announced but translated into day-to-day improvements on the ground.

Stretching dollars

Multi-billion-dollar budgets are not always enough to keep pace, particularly amid construction cost inflation and shifting economic conditions. “Construction cost inflation has limited the region’s ability to add major projects to our 10-year construction program,” said Salim Alibhai, the director, Transportation Capital Delivery with York Region.

At the same time, the challenge is not just funding levels – it’s unpredictability, which for industry can be just as challenging as underfunding. Municipalities develop detailed long-term capital plans, but those plans can shift quickly due to economic pressures, changing tax revenues, trade issues, or political decisions. “When budget constraints hit, those plans can be scaled back, or sometimes cut in half, as councils reassess priorities and defer projects,” said McManus. “Those decisions can happen quickly, and there isn’t always a full understanding of the ripple effects.”

Those impacts extend well beyond individual projects, shaping how work is planned, staffed, and delivered across the industry. “It’s not just about dollars in and out – entire companies and workforces depend on that pipeline,” said McManus.

That uncertainty contributes to a start-stop cycle, where projects are delayed or cancelled, workforces fluctuate, and capacity is affected across the system. Over time, that volatility makes it harder to maintain the workforce and expertise needed to deliver consistently. “We’ve run through huge growth in capital budgets and infrastructure portfolios, but we’re only seeing a fraction of that money actually being spent,” said McManus, noting that labour hours dropped by nearly 25 per cent in 2025. “That’s directly tied to spending not happening.”

Even when funding is available, system capacity remains a constraint. There are only a finite number of contractors, engineers, municipal staff, and procurement teams available to deliver projects, and shortages in any one area can slow progress across the board. “We’ve heard from consulting engineers, from municipalities, and there just aren’t enough people across the system,” said McManus.

Inconsistent building

Municipal infrastructure delivery is further complicated by a lack of standardization across jurisdictions. Each municipality operates under its own specifications, contract terms, and construction requirements, meaning infrastructure is built differently from one jurisdiction to the next and, sometimes, even within the same region. For contractors, that creates complexity on every job, requiring time and resources to interpret and adapt to varying standards. The result is a system where efficiency is often sacrificed for local variation.

“You’d think backfill should be the same everywhere,” said McManus. “But everyone wants something different, so it’s never as simple as bidding one job and doing it the same way somewhere else.”

These inconsistencies are compounded by the realities of working in built environments. Limited space requires complex staging and traffic management, while incomplete or outdated underground information introduces uncertainty during excavation. Crews often encounter utilities or conditions that were not identified at the design stage, forcing projects to pause while conditions are assessed and plans are revised. When real-world conditions differ from assumptions, redesigns during construction can trigger delays, approvals, and cost escalation, making delivery less predictable from both a schedule and business standpoint.

Coordination complexities

Municipal infrastructure delivery also requires coordination across multiple stakeholders, and that coordination is not always seamless. In a system with this many moving parts, even small misalignments can have cascading effects. “We’re working in a web of projects, and that requires significant coordination across all divisions and everyone else building in the city,” said Harkness.

With limited road space, municipalities must manage traffic, detours, and overlapping construction activities, often within the same corridor. At the same time, planning processes can remain fragmented across departments and agencies. “The planning process is still disjointed,” said McManus. “Every department is planning independently. You’ll see a street opened up for sewer work one year, then reopened for road work, then again for utilities.”

We’re working in a web of projects, and that requires significant coordination across all divisions and everyone else building in the city.

Jennifer Graham Harkness, City of Toronto

That lack of alignment can lead to repeated work, inefficiencies, and frustration for residents and businesses, while also increasing costs and extending timelines. Projects are often dependent on multiple partners (e.g., utilities, municipalities, contractors, etc.), and if one party is not ready, the entire project can be delayed.

Taking action

To address these challenges, municipalities are taking steps to improve coordination and delivery by adopting more integrated approaches and creating clearer lines of communication. In Toronto, the city has established a Strategic Capital Coordination Office and a chief congestion officer role to help align projects across divisions and manage construction impacts. A Work Zone Coordination Unit supports traffic management during construction and responds in real time to minimize disruption.

“We’re constantly looking at how to minimize disruption to residents, businesses, and road users,” said Harkness. “We want to be out there solving problems with contractors in real time, not waiting, because that just slows everybody down.”

Toronto is also working to improve how project pipelines are communicated and to create more consistent engagement with industry, helping contractors better plan for upcoming work and reducing uncertainty around scheduling. These efforts reflect a broader shift toward more proactive, system-wide coordination rather than reactive problem-solving. York Region is taking a similar approach, focusing on coordination across municipalities, utilities, and the province. This includes bundling utility and roadway work into single contracts to reduce repeated construction windows, coordinating projects across jurisdictions and corridors, and staging asset management work over multiple seasons to improve efficiency.

“We’re incorporating utility work within construction contracts to minimize multiple work windows, and we’re deliberately advancing select asset management activities over multiple construction seasons,” said Alibhai. “This allows contractors to focus on pavement resurfacing as a standalone effort, improving outcomes while reducing disruption to communities.”

York Region has also introduced practical solutions to reduce disruption and improve outcomes, including infrastructure designed to balance environmental considerations with operational needs. In one example, York Region installed permanent wildlife crossings (i.e., salamander tunnels) under Stouffville Road in Richmond Hill, allowing seasonal migration to continue without requiring repeated road closures. In so doing, it has implemented a solution that combines long-term planning, environmental considerations, and coordination that spans multiple agencies.

This is just one example of how the region continues to strengthen collaboration with provincial partners and neighbouring municipalities. At a high level, Alibhai said, “A coordinated approach is essential to reduce impacts to the community, but it also creates timing challenges, as success depends on all partners being ready.”

Evolving procurement models

As with major provincial projects, how work is delivered is becoming just as important as what gets built. Procurement is evolving as municipalities look to better match delivery models to project complexity and reduce inefficiencies. Traditional low-bid models, for example, are being re-evaluated, given that they can transfer significant risk to contractors, particularly in underground work where conditions are uncertain and difficult to fully assess at the bidding stage. “When you open up a road, it’s like spaghetti underground,” said McManus. “You’re digging around gas lines, water lines, electrical lines, and fibre optics. It’s a dog’s breakfast down there.”

Success comes down to better coordination, clearer forecasting, and a real understanding of capacity across the system. Just as important, though, is consistency. If municipalities say they’re going to build, the industry is counting on them to follow through.

Patrick McManus, Ontario Sewer and Watermain Construction Association

In response, municipalities are exploring alternative models that better align risk, expertise, and project complexity. In Toronto, for example, Harkness said, “We’re picking the contract method to match the project. We follow an open, competitive process, but we’re also adopting models like design-build and CMGC [construction manager / general contractor].”

These approaches are already showing results. Speaking to recent work on Toronto’s Gardiner Expressway, Harkness said, “We accelerated that project by 18 months from its original schedule – and we did that in partnership with the province. It has been a really good example of how we’re setting the mindset of working together to go faster and operating with a 24/7 mindset.”

York Region is also taking this moment to reevaluate its procurement and delivery models. According to regional staff, it is moving toward value-based procurement models that recognize contractor performance, experience, and understanding of project requirements, rather than focusing solely on the lowest cost.

Leading by example

Municipalities face no small challenge at this moment – meeting it will require greater consistency, stronger coordination, clearer pipelines, and continued collaboration across industry and government. The path forward is not about a single solution, but about improving how the overall delivery model functions as a whole. “Success comes down to better coordination, clearer forecasting, and a real understanding of capacity across the system,” said McManus. “Just as important, though, is consistency. If municipalities say they’re going to build, the industry is counting on them to follow through.”

Feedback from Toronto and York Region shows municipalities are listening. Moreover, they share a belief that their public and private sector partners are adapting alongside them. “The cooperation and the mindset of how we do this faster has really taken hold,” said Harkness. “As we’re changing how we deliver projects, contractors are adapting alongside us, and you see that in how teams are working together to solve problems in real time and keep projects moving.”

In many ways, municipalities are setting the pace for how = infrastructure is delivered across Ontario – and the success of the province’s broader ambitions will depend on how well that system performs.