BCCA RESPONSE TO BC BUDGET 2026:
Budget release date: February 17, 2026
BCCA’s Preliminary Statement on BC Budget 2026:
As British Columbia navigates a challenging fiscal environment, the British Columbia Construction Association (BCCA) is pleased to see continued commitment to capital spending on critical infrastructure. BC’s construction industry will play a pivotal role in delivering the projects enabled by this funding and advancing major projects that will position BC as a leader on national and international stages. Read the full statement.
Deconstructing the Details:
PST expansion will drive up costs for BC’s construction industry:
Budget 2026 bets big on infrastructure. But a commitment to capital spending and a decision to increase costs on capital projects can coexist in the same budget — and should.
The expansion of PST to architectural, engineering, and related professional services will add real cost to virtually every project in BC. Professional services typically represent 8–15% of total project value. Applying PST to those fees adds an estimated 1–2% to overall project budgets.
For schools to hospitals – projects that can cost upwards of $100M to $1B, these are additional, unnecessary costs ranging from $1-10 million.
These costs don’t evaporate. They either reduce project scope, extend timelines as budgets are revised, or get absorbed back into the public purse. This risks undermining the Budget’s capital commitments. At a moment when the Province is trying to stretch infrastructure dollars as far as possible, adding cost friction at the front end of the project delivery pipeline works against that goal.
Strategic Investments in Capital Projects Key to Infrastructure Goals:
BC is navigating a challenging fiscal environment. The decision to protect and continue capital investment in infrastructure is not easy, but necessary.
The establishment of the Strategic Investments Special Account is a structural step that creates a more durable mechanism for funding major capital projects. Done right, this kind of framework provides the predictability our industry needs to plan for and deliver projects effectively.
A strong province depends on a strong construction sector. Budget 2026’s capital commitments, and the framework being built around them, reflect that understanding. Now the work is making sure those commitments translate into projects in the ground — on time, on scope, and with the industry capacity to deliver them well.
Project Delays Reintroduce Uncertainty for Industry:
When major public projects sit in limbo, contractors can’t commit resources. Subtrades can’t schedule crews. Skilled workers who might have stayed in BC take opportunities elsewhere. The project pipeline doesn’t pause — it drains.
Budget 2026 tables or defers decisions on several significant healthcare capital projects, including long‑term care facilities and the Burnaby Hospital redevelopment. This will reintroduce uncertainty into an industry that relies on long‑term visibility to function efficiently. When the government signals hesitation on projects of this scale, it undermines confidence across the entire construction ecosystem.