Hamilton shows how less is more for taxpayers

Not much can be done about the current widespread sticker shock.

From food, clothing and gasoline, to real estate, it seems just about everything these days has become a lot more expensive. However, one notable exception is in the City of Hamilton, which is proving that runaway prices do not have to apply to municipal construction projects.

Supply chain backlogs, rising material costs and a shortage of skilled workers, all make the cost of a whole range of products and services more expensive. Still, the City of Hamilton has found a way to do what seems nearly impossible nowadays: save on construction. It’s reconstructing roads and bridges and improving parks for much less than it used to cost. This is all thanks to a decision the city made three years ago next month that’s paying off now.

In 2019, the Ford government passed game-changing legislation that the City of Hamilton wholeheartedly supported. Bill 66 opened up municipal construction markets to competition. This gave every qualified contractor and construction worker a chance to build local public projects regardless of their union affiliation. Before that, Hamilton’s municipal construction work could only be awarded to companies with ties to specific unions.

Embracing construction competition was a commendable move by the city because it signaled loud and clear that all companies and workers should be treated fairly and equally. Today, that decision is even more meaningful. Saving tax dollars when the price of just about everything else is surging, is no small feat.

The savings are significant. A report by the City of Hamilton’s procurement team calculated average savings of 21 percent on public construction work. Unfortunately, the provincial legislation that made it possible is not bulletproof, which means taxpayers are still getting dinged. For example, a large publicly funded project to expand Ottawa Hospital’s Civic Campus could cost all Ontario taxpayers dearly.

A report by the independent Montreal Economic Institute (MEI) calculates the public could wind up overpaying for the hospital expansion by as much as $525 million. That’s because there’s an agreement in place granting certain unions and companies exclusive access to the $2-billion project. This is just what Bill 66 was designed to prevent.

Until all loopholes are closed in the legislation, taxpayers will not realize the full benefits.

This post appeared in the  Hamilton Spectator.