Metrolinx was interested in a better understanding of the macro-economic factors driving cost escalations across its portfolio of construction projects.
Using a mix of input goods and services for a “typical” large civil construction project and/or heavy rail project, the analysis aims to:
- Identify the recent trends (10 years) in key inputs and related factors including:
- Material costs
- Wage costs (by occupation/industry)
- Equipment costs
- Overhead & indirect costs (including margins)
- Labour and equipment productivity
- Understand the mean trends, and their volatility against key macro-economic factors. Emphasis to be made on the most likely reasons driving the trends.
- Use Ontario-specific data and generate Ontario-specific results, to the extent possible.
In addition, the analysis will examined the likelihood that the most recent changes in costs during the COVID-19 pandemic are either transitory or structural.