Industry Issues – TARBA

Sharing the Risk: Why Municipalities Need Fuel & Material Price Adjustment Mechanisms

Natasha Thurston — Thu, 01 Oct 2026 16:14:11 +0000

Between January and August 2026, fuel prices increased by 58%.

Ongoing global uncertainty and supply chain pressures continue to drive significant volatility in the cost of key construction inputs, demonstrating just how quickly external factors that, neither municipalities nor contractors control, can change project economics. Fuel, steel, asphalt cement, and other essential materials are experiencing swings that are difficult – if not impossible – to predict at the time of tender.

For contractors delivering Ontario’s transportation infrastructure, fuel price fluctuations are not just an operational challenge; they ripple across the entire supply chain. Aggregates illustrate this clearly: up to 60 percent of their cost is tied to transportation. When fuel prices shift suddenly, the cost of extracting, processing, moving, and placement of these essential inputs rises immediately, placing pressure on project budgets and timelines.

Risk should sit with the party best able to manage it

The current approach on most municipal contracts is to place virtually all of this risk on the contractor through a fixed-price tender, secured months and sometimes years in advance. When an owner transfers an extraordinary market risk entirely to the contractor, the contractor has only a few options: absorb the loss, price the risk, or avoid the work.

When input costs change dramatically, contractors are left managing risks that could not have been reasonably anticipated – an especially acute challenge for small and mid-sized employers. When contractors cannot reasonably predict future input costs, they must protect themselves by adding contingencies to their bids. Where the risk becomes too difficult to quantify, contractors may reduce their exposure by declining to bid altogether.

For municipalities, the consequences can be higher tender prices, fewer competitive bids, claims and disputes, and greater uncertainty in capital program delivery.

A more balanced, risk-sharing approach is urgently needed. And Ontario already has established, proven models:

The Ontario Ministry of Transportation (MTO) uses a Fuel Cost Adjustment Index based on independently published fuel prices, with a defined baseline and a ±5% threshold. Adjustments are applied when the indexed price moves beyond the established threshold. The use of this is detailed in PROV 100 GC 8.02.04.02, Payment Adjustment for Changes in the Fuel Price Index.
The City of Ottawa uses the MTO index, incorporating a 7% fuel allotment and a ±15% threshold.
The Region of Waterloo provides annual fuel adjustments on multi-year contracts, using a ±10% threshold.

These models demonstrate that price adjustment provisions can be incorporated into public contracts without creating an open-ended obligation for the owner. A properly designed adjustment mechanism shares an external market risk while preserving contractor responsibility for the risks they can actually control, like productivity, staffing, equipment utilization, sequencing, and construction.

A straightforward approach for fuel

Municipalities can follow the five steps below to include fuel adjustment provisions in their capital contracts.

Establish a baseline. At tender, the contract identifies the applicable index and establishes the baseline price using the index value in effect at a defined date.

Establish a threshold. The contract identifies a reasonable band of market movement that remains the contractor’s responsibility. For example, an agreed ±5%, ±10% or ±15% threshold.

Adjust only beyond the threshold. If the indexed price moves outside that band, the contract price is adjusted based on the documented change beyond the threshold. The adjustment is tied to an objective index rather than the contractor’s actual cost or an individual supplier invoice.

Apply the mechanism in both directions. If prices increase beyond the threshold, the contractor receives an adjustment. If prices decrease beyond the threshold, the municipality receives the corresponding reduction.

Define the timing and frequency in the contract. The contract should specify the index publication date, calculation period, adjustment frequency, eligible quantities or fuel allowance, and the point at which the adjustment applies.

This provides both municipalities and contractors with a transparent and auditable mechanism before a project begins.

Same principle for major materials

Municipal contracts should also consider material escalation and de-escalation provisions for inputs where significant price volatility can materially affect the cost of delivery.

Once again, there is already an Ontario precedent. Metrolinx has used a material indexation framework that identifies specified materials and connects their prices to independently published Statistics Canada Industrial Product Price Index categories. The framework can establish a price at the RFP stage and calculate an adjustment against the applicable index when the material is subsequently purchased.

A municipal framework could similarly identify eligible materials, establish a tender-date baseline, specify an appropriate Statistics Canada or other independent index, set an adjustment threshold, and apply the resulting increase or decrease to the eligible quantity.

A procurement approach that protects capital budgets

Municipalities have a significant infrastructure agenda ahead of them. Maintaining a strong, competitive contractor market is essential to delivering it. That includes also developing a mechanism to address fuel and material escalation on existing contracts where this cost risks could not reasonably have been contemplated.

A procurement framework that recognizes market volatility, shares extraordinary risk transparently and rewards competitive pricing will provide municipalities with better information at tender, more reliable project budgets, and a stronger pool of contractors able to deliver the work.

TARBA looks forward to continued collaboration with municipal partners to ensure infrastructure programs remain resilient, efficient, and responsive to today’s economic realities.

Making Buy Ontario Work

Natasha Thurston — Mon, 21 Sep 2026 15:10:25 +0000

The Ontario Government has made its priorities clear: when public dollars are spent, they should help strengthen Ontario businesses, workers and supply chains. Now we need to make it easy to deliver on that promise.

As of May 15^th, the Ontario government required municipalities to implement a Buy Ontario policy that prioritizes Ontario and Canadian goods and services (including labor hours) in their capital infrastructure projects.

But the policy is not working as intended – it is confusing, fragmented, and adds a new layer of red tape, cost, and uncertainty for the Ontario businesses it is meant to support.

Municipalities are left to develop their own forms, requirements, thresholds, and interpretations of the Directive. Contractors and suppliers are being required to provide detailed supply-chain and domestic-content information repeatedly for every tender they bid on and navigate varying requirements from municipality to municipality. For contractors operating across the GTA, that is exactly the kind of procurement fragmentation that industry has been working to eliminate.

The result is more red tape, cost escalations, project delays, disputes, and reduced competition. Instead of making it easier for Ontario businesses to compete for Ontario public work, the current system is creating new barriers to participation, especially for small- and medium-sized businesses.

When the Math Doesn’t Add Up

The 10% evaluation advantage is the clearest example of how a well-intentioned Buy Ontario policy can produce the opposite result. Municipalities that have chosen this approach have faced substantially higher project costs for little or no meaningful increase in Ontario content. In one example, a municipality would have paid approximately $500,000 more for a bridge project to achieve just one additional percentage point of Ontario content: 90% compared with 89% from the lowest qualified bidder.

That is not a sustainable way to strengthen Ontario’s economy. It risks diverting scarce municipal dollars away from the critical infrastructure communities need, while creating disputes, procurement uncertainty and delays in awarding contracts. Rather than strengthening Ontario businesses, the 10% model can undermine established, competitive procurement processes and make it harder for municipalities to deliver their capital plans.

Municipalities should avoid adopting this approach as part of their policies, and the Province should reconsider the 10% evaluation advantage altogether.

Successful approaches

When the Directive was first launched in April 2026, TARBA, GTSWCA and HCAT, encouraged municipalities to adopt the Ministry of Transportation’s (MTO) Buy Ontario policy to help establish a clear and consistent model: require a standardized Domestic Supply Chain Plan that includes only the major goods and services and Ontario/Canada/Other source, establish a 51%+ Ontario/Canadian content commitment, and allow supply chains to be updated as projects move forward. We applaud the municipalities that selected this approach.

The Region of York has implemented the most successful approach to date, significantly minimizing administrative burden, while staying compliant with the Directive. The Region requires a simple attestation to the 51%+ Ontario/Canada threshold at the time of bid and invites only the preferred qualified lowest bidder to provide a Domestic Supply Chain Plan with the main categories. This approach has ensured no disputes or failed procurements to date, and maintained competition from a high number of bidders.

The City of Toronto is also taking a thoughtful, industry-informed approach. Its proposed commitment framework recognizes that not every infrastructure project has the same supply chain – a point the civil industry has made from the beginning. Roads, sewers and water infrastructure have much more local supply chains, while specialized projects may rely more heavily on global suppliers. Additionally, the City has taken our proposal to have only the three low-bid compliant bidders submit a completed Domestic Supply Chain Plan after bid closing to reduce the administrative burden for both contractors and municipal staff.

All three approaches are practical, helping municipalities implement Buy Ontario without unintentionally making it harder for Ontario businesses to compete.

A better way forward

In the immediate, the Ontario government should standardize its Directive for linear infrastructure to follow the MTO policy approach: one threshold, identified major goods and services and simple source table for its Domestic Supply Chain Plan, along with a contractor commitment and attestation. A standardized policy approach for every municipality.

But the Directive in its current form focuses on the supply chain of each individual project rather than building up our domestic supplier base. Ontario businesses should not have to prove they are Ontario businesses over and over again.

The Buy Ontario framework is a long-term economic development strategy. To deliver on that, the next step should be to establish an Ontario/Canadian verification model.

The principle is simple: verify businesses, suppliers, products and material sources once, then allow municipalities and contractors to rely on that information across procurements.

A centralized provincial system could establish standardized definitions and criteria, provide annual or periodic certification, and give qualified businesses a recognized status that can be used across municipal procurements. The province could build on systems that already exist, including existing municipal pre-qualified supplier lists, MTO’s Designated Sources for Materials, Supply Ontario procurement infrastructure, and the Canadian Manufacturers & Exporters Ontario Made registry.

It would make administration far simpler for municipalities, providing them with a trusted, consistent source for determining whether a business, supplier or material meets the applicable Ontario or Canadian criteria. It can also allow municipalities to pre-quality businesses operating in their communities, while leveling the playing field for the contractors bidding.

It would give businesses both a competitive advantage and the information they need to strategically source Ontario/Canadian materials.

It would help the provincial government identify where the gaps are in domestic supply chains and start the discussion on building that capacity locally.

Ontario should move Buy Ontario from a project-by-project paperwork exercise to a one-time business qualification system, allowing municipalities to prioritize Ontario and Canadian businesses while reducing procurement complexity, protecting competition, and accelerating infrastructure delivery. It is a scalable approach that can also be applied to other sectors beyond construction.

At a time of global economic uncertainty, strengthening domestic supply chains is not just good procurement policy. It is good economic policy. Ontario is investing billions in critical infrastructure including roads, transit, water and wastewater. Those investments should help sustain Ontario jobs, businesses, manufacturers, suppliers and skilled trades.

Industry is not asking to step back from Buy Ontario. We are asking to make the policy work as intended.

Buy Ontario should reward Ontario businesses for being Ontario businesses. It should not punish them with more red tape.

Support Available for Canadian Businesses Affected by US Tariffs

Natasha Thurston — Tue, 08 Sep 2026 12:00:01 +0000

On August 25, 2026, the Government of Canada announced new counter-tariffs in response to the United States imposing a 50 per cent tariff on $27.6 billion in Canadian goods, effective August 22. Ottawa’s response amounts to a dollar-for-dollar and rate-for-rate tariff imposition ranging from 15, 25, and 50 per cent on $27.6 billion in imports from the United States. According to Finance Canada, the counter-tariffs will take effect at 12:01 a.m. on September 8, 2026. These measures will only apply to qualifying U.S.-origin goods. Goods that are already in transit when the measures take effect will be excluded.

The Canadian government announced new and enhanced measures to support Canadian businesses affected by the recently escalated U.S. tariffs. The measures include liquidity support, diversification funding, and employment insurance supports. Sherrard Kuzz LLP has put together a briefing note that helps summarizes the key measures.

Best Procurement Practice: The Immediate Release of Unofficial Bid Results

Natasha Thurston — Mon, 31 Aug 2026 10:00:03 +0000

For road builders and infrastructure contractors in Ontario, transparency in municipal procurement is not a nice-to-have. It is a critical part of a competitive, efficient, and accountable construction market.

One simple practice can make a meaningful difference: the release of unofficial bid results immediately following the close of a tender.

At first glance, publishing unofficial bid results may seem like a minor administrative step. In reality, it increases competition, provides valuable market intelligence, strengthens confidence in the procurement process, and helps municipalities secure the best value for taxpayers.

TARBA encourages all public owners, whether municipalities or provincial agencies, to:

require the immediate publication of unofficial bid results after bid closing.
publish all bidder names and submitted bid prices.
state results remain subject to compliance review and formal award.

THIS ISN’T NEW

Unofficial bid results typically identify the bidders and their submitted prices on a specific tender, before the municipality completes its formal review and awards the contract. They are not an award decision, and they do not replace the municipality’s due diligence.

Historically, public tenders were submitted and opened in person, with bidder names and submitted prices read aloud immediately after bid close. The shift to electronic bidding has made the bid submission process more efficient, but it has come at the expense of this long-standing transparency. While some municipalities still publish unofficial bid results immediately after tender closing, others delay publication by days and even weeks, and some do not release unofficial bid results at all.

These varying municipal approaches create an inconsistent and unpredictable procurement environment for contractors who bid across multiple municipalities, especially in the Greater Toronto Area. Municipalities are effectively competing for the same pool of contractors, so procurement practices in one municipality can affect competition in another.

WHY IMMEDIATE UNOFFICIAL BID RESULTS MATTER

Maintains transparency. Publishing unofficial bid results restores a long-standing procurement best practice using functionality already available in existing e-procurement systems. It does not affect municipal discretion over compliance reviews or contract awards.

Keeps contractors bidding. Until contractors know whether they are among the top low bidders, they may need to preserve bonding capacity, crews, equipment, and financial resources in case they are awarded the job. In a busy construction market that can mean sitting out other municipal tenders closing in the meantime. This can result in less competition and fewer bids for municipalities and potentially higher prices for taxpayers.

Provides valuable market intelligence. Bid results provide important information about current construction market conditions. Contractors can compare their pricing with other bids, while municipalities can identify pricing trends, unusual bid spreads or other signals that may warrant further review. This information can help both industry and municipalities make better-informed decisions about future projects.

Strengthens confidence in the procurement process. Timely disclosure of unofficial bid results reinforces the integrity of the competitive procurement process by providing a clear and transparent record of the bids received. Contractors need confidence that the process is open, consistent, and accountable, particularly when significant time and resources are invested in preparing a bid. A transparent and consistent procurement process strengthens trust between municipalities, contractors, and taxpayers.

IT DOES NOT COMPROMISE THE AWARD PROCESS

A common concern is that publishing unofficial bid results could create confusion because the lowest bidder may not necessarily be the successful bidder. But that is precisely why the results should be clearly identified as unofficial. Municipalities can also include a clear liability and non-reliance disclaimer language in both municipal procurement documents and on e-tendering portals to address concerns about legal exposure while restoring immediate bid transparency.

A model clause that municipalities could adopt or adapt is set out below.

“Unofficial bid results will be posted upon electronic tender closing for information only. These results are not official and do not constitute a notice of acceptance, contract award, or any representation as to bid compliance. The municipality does not guarantee the accuracy, completeness, or timeliness of the information and will not be liable for any costs, losses, or damages arising from reliance on unofficial bid results by bidders or third parties.

All bids remain subject to full compliance review, evaluation in accordance with the procurement documents, and formal award approval by the municipality.”

A SIMPLE STEP TOWARD BETTER PROCUREMENT

Ontario has a significant infrastructure challenge ahead. Municipalities need to deliver roads, bridges, water infrastructure and other capital projects efficiently and get the best possible value for taxpayers.

That requires a strong and competitive construction market. The timely release of unofficial bid results is one small but meaningful tool to support that goal.

OPSS Standardization

Natasha Thurston — Wed, 26 Aug 2026 14:15:58 +0000

OPSS Standardization: Ontario Takes the Next Step Toward Consistent Municipal Road Construction Standards

The Ontario Government has taken an important step toward standardizing how municipal roads are designed, built, and maintained across the province with the passing of Ontario Regulation 283/26, Standards for Road Design and Construction in August 2026.

These are the enabling regulations following the legislative changes through the Fighting Delays, Building Faster Act, 2025, which gave the Ontario Minister of Transportation authority to establish mandatory standards for municipal road construction.

For procurement processes that begin on or after July 1, 2027, municipalities will be required to use the first phase of mandatory Ontario Provincial Standard Specifications for Municipal Road Construction (OPSS.MUNI) standards in the design and construction of municipal linear infrastructure projects.

The Ontario government’s approach reflects TARBA’s stated priorities:

Phased approach starting with the highest priorities for harmonization: asphalt and aggregates specifications, which includes Recycled Crushed Aggregates, that have some of the greatest variability and potential for productivity drain and cost inefficiencies;
Introducing a clearly defined exemption process for municipal projects;
Reviewing and updating the specs to ensure they are current, technically sound, and practical to implement; and
Creating an updated governance structure that reflects both industry and municipal input with clear decision-making processes.

This is more than a policy change. It is a generational shift in how Ontario builds roads, creating a more consistent system designed to deliver infrastructure safer, faster, and more cost effectively.

TARBA commends this progress and recognizes the work of industry partners, MTO, municipalities, engineers, and other stakeholders who have helped move this important issue forward.

The OPSS Model: Why Standardization Matters

Ontario’s roads are the backbone of our economy, connecting communities, moving goods and getting people where they need to go.

Yet the way these roads are designed and build has historically varied significantly from municipality to municipality, despite the availability of provincial standards.

The OPSS.PROV and OPSS.MUNI standards were developed to provide a comprehensive and uniform framework for provincial and municipal road construction and procurement practices.

They establish clear, consistent technical requirements for material use, construction methods, quality control processes, and general conditions of contract aligned with best practices and provincial guidelines.

These standards were jointly developed and managed by the Ontario Ministry of Transportation, the Municipal Engineering Association, and representatives from industry. They have been proven by consistently well-built, cost-effective, safe, and dependable highways, roads, sewers, watermains, and many other types of infrastructure in the province. Any changes to the standards are measured and are implemented with realistic timelines.

However, the use of OPSS.MUNI was not mandatory, and Ontario’s 444 municipalities had discretion in adopting these standards, modifying them, or creating their own. Many municipalities had created stricter supplementary specifications, a long list of exceptions, or bypassed OPSS.MUNI, fragmenting consistency and amassing hundreds of different specifications across the province. Municipalities can quickly change their own standards without any consultation, simply issuing a notice to industry that can impact production, design, build, and performance. In the GTA alone, contractors have had to navigate hundreds of different requirements and more than 300 asphalt mix designs.

This fragmentation comes at a cost.

It can increase material and production costs, lower productivity, create unnecessary administrative burden, make it harder for contractors to operate across municipal boundaries, and slow down the delivery of critical infrastructure.

By adopting OPSS.MUNI, municipalities will benefit from uniform standards that simplify tendering, streamline processes and reduce duplication, improve quality, sustainability, and safety, and lower costs. Cutting red tape and uncertainty reduces risk and waste, while boosting productivity and competitiveness; it creates a more level playing field, especially for small and medium-sized businesses.

What Standardization Can Deliver

Better value for taxpayers. Common specifications allow municipalities and contractors to benefit from economies of scale, more competitive procurement, and greater efficiency. CANCEA research has indicated that harmonizing asphalt mix designs in the GTA alone could unlock nearly $1 billion in value over the next decade.

Faster infrastructure delivery. Clear, pre-vetted standards mean less time spent on drafting individual municipal specs, back-and-forth reviews, and disputes — resulting in projects being designed and built with fewer delays.

Better performance and safety. Uniform standards mean consistent pavement thickness, materials, and testing protocols. That means fewer potholes, less emergency repair work, and safer travel for everyone.

A stronger competitive market. Contractors can compete on a more level playing field without having to maintain a different set of processes, equipment, materials and expertise for every municipality.

Greater sustainability. OPSS.MUNI standards already encourage practices like using recycled crushed aggregates — reducing carbon emissions, conserving non-renewable resources, and cutting landfill use.

TARBA’s Priorities Moving Forward

Establishing the policy is the first step. Getting implementation right will determine whether standardization delivers the benefits Ontario expects. The objective should not simply be to replace hundreds of municipal specifications with one document, but rather to build a standardized system that works.

As implementation progresses, TARBA will continue advocating for five key principles:

1. Support continuous procurement

The transition to mandatory OPSS.MUNI standards should support, not slow down, Ontario’s municipal infrastructure pipeline. Municipalities should continue bringing projects to market and tendering work throughout the 2027 transition year. MTO can support this with clear guidance to ensure the new requirements do not create delays, uncertainty, or unnecessary rework. The goal is to maintain momentum on critical infrastructure projects while municipalities and industry adapt to the new standardized framework.

2. Get the standards right

Mandatory standards must be current, technically sound, and practical to implement.

OPSS.MUNI should be regularly reviewed using field experience, technical evidence, pilot projects, and lifecycle cost analysis. This would include establishing a predictable review process to ensure transparency and accountability when updating standards that includes feedback beyond the existing governance committee structure.

3. Minimize municipal customization

To achieve economies of scale and realize the benefits of harmonization, municipalities must adopt OPSS.MUNI in full, subject only to exceptional and project-specific exemptions that are pre-approved by the new governance committee. TARBA recommends two instances for consideration: 1) evidence-based, technically justified cases, and 2) piloting a new material,

equipment, process, or technologies to support innovation. A formal exemption process will help ensure that innovation and quality improvements are shared across the province, rather than remaining siloed in individual municipalities.

TARBA supports a practical and balanced approach that minimizes unnecessary customization, reduces fragmentation, and preserves the flexibility municipalities need to address evidence-based project-specific requirements.

4. Finalize General Conditions of Contract 100 through meaningful consultation

The additional year before OPSS.MUNI 100 becomes mandatory on July 1, 2028 is an opportunity for industry and municipalities to work together to ensure the General Conditions appropriately address issues such as risk allocation, payment, changes, claims, extensions of time, contract administration and other practical realities of delivering infrastructure projects.

This would also include alignment with the latest updates to the Construction Act, Buy Ontario Act, the establishment of standardized testing protocols and a clear dispute resolution process (e.g. use of End Result Specifications).

5. Continue phased harmonization & develop standard contract documents

TARBA will continue to advocate for a clear, phased roadmap to full standardization, with defined timelines and additional specifications identified for harmonization, until OPSS.MUNI is mandatory in its entirety.

This should also include the development of additional standardized contract documents to support the specifications and provide practical tools for tendering, pricing, technical compliance, contract amendments, reporting, and inspection—all necessary to ensure OPSS.MUNI standards are applied consistently and efficiently across municipal projects.

What This Means for Contractors

TARBA members should:

Familiarize themselves with the OPSS.MUNI standards that will become mandatory, particularly the asphalt and aggregate specifications relevant to their work.
Review current estimating, production and quality-control practices against the applicable OPSS.MUNI requirements.
Watch municipal tenders closely as the July 1, 2027 transition date approaches and confirm which standards apply to each procurement.
Participate in TARBA consultations and provide practical feedback on specifications that create challenges in the field.
Provide input for the development of OPSS.MUNI 100 and the transition to standardized contract conditions ahead of July 1, 2028.

TARBA will continue to keep members informed as implementation details and requirements evolve.

Building a Better System for Ontario

Ontario has reached an important milestone.

Mandatory OPSS.MUNI standards will bring greater consistency to municipal road construction, reduce unnecessary duplication, and create a more predictable environment for municipalities, contractors, and suppliers.

The year ahead is critical for implementation: getting the standards right, finalizing the General Conditions of Contract, ensuring meaningful industry and municipal input, and creating a system that is practical on the ground.

TARBA’s goal is simple: safer roads, faster project delivery, and better value for Ontario taxpayers, while ensuring the standards work for the workers and businesses actually building our critical transportation infrastructure.

Increase in Spalling Issues: Joint Industry Letter

Natasha Thurston — Fri, 24 Jul 2026 11:00:40 +0000

Dear Municipal & Private Partners,

Re: Spalling on 2022-2025 Projects

The Toronto and Area Road Builders Association (TARBA), the Greater Toronto Sewer and Watermain Contractors Association (GTSWCA), and the Heavy Construction Association of Toronto (HCAT) represent hundreds of civil construction companies building critical public and private infrastructure projects across the Greater Toronto Area, including roads, transit, curbs and sidewalks, highways, bridges, tunnels, water, sewer, and stormwater.

This year, there has been a significant increase in reported concrete spalling on municipal and private flatwork, curb, and bridge projects completed between 2022 and 2025. Spalling issues have been reported by multiple contractors, using various ready-mix suppliers, on projects in nearly all GTA municipalities.

Based on the shared information, this is not an isolated issue affecting a single project, municipality, supplier, or contractor. Rather, it appears to be an industry-wide concern that warrants a further in-depth investigation and collaborative approach. Accordingly, our three associations are actively engaging with our members, industry partners, public and private owners, engineers, and material suppliers to better understand the extent of the issue and identify contributing factors.

We encourage public and private owners to evaluate instances of concrete spalling within the context of this broader industry-wide trend, rather than treating them as issues unique to individual contracts or contractors. A collaborative, evidence-based approach will be the most effective way to develop appropriate responses, both to address deficiencies fairly and to ensure long-term performance and durability.

TARBA, GTSWCA, and HCAT are committed to working alongside our municipal and industry partners to support this effort. As more information becomes available through ongoing discussions and technical review, we look forward to sharing findings and participating in any collaborative initiatives aimed at delivering high-quality infrastructure. Should your staff wish to participate or discuss this matter further, please do not hesitate to reach out to us.

Managing Asphalt Cement Price Volatility Through a Shared Risk Model

Natasha Thurston — Mon, 22 Jun 2026 11:18:04 +0000

Asphalt cement (AC) is one of the most significant cost components in hot mix asphalt. In recent months, the Ontario AC market has experienced substantial price increases, with the MTO AC Price Index rising from $1,067.25 per tonne in February 2026 to $1,530.00 per tonne in May 2026, a 43 per cent increase in just three months. These fluctuations are impossible for contractors to predict at the time of tender and price into fixed-price contracts. This can lead to project delivery challenges and, in the long-term, higher bid prices through increased contingencies.

TARBA is urging municipal owners to adopt an AC Price Index like the one used by the Ontario Ministry of Transportation (MTO).

For decades, MTO has successfully protected both owners and contractors from significant market swings through a transparent AC price adjustment mechanism tied to a published monthly index. Importantly, MTO’s approach does not adjust contracts for every market fluctuation. Price adjustments are triggered only when the monthly AC Price Index varies by more than five per cent from the index in effect at tender closing. This balanced approach protects taxpayers from unnecessary adjustments while ensuring contractors are not exposed to extraordinary market volatility.

Risk allocation works best when risks are assigned to the party best positioned to manage them. Contractors can effectively manage construction operations, scheduling, and quality. Global AC pricing, however, is driven by refinery production, energy markets, and supply chain factors that neither municipalities nor contractors can control. Shared-risk contract models improve market certainty, attract competitive bids, and help ensure infrastructure projects are delivered efficiently and cost effectively. This approach also aligns with TARBA’s recommendation that municipalities adopt a Fuel Cost Adjustment Index.

As municipalities continue to invest billions in transportation infrastructure, procurement models must evolve to reflect today’s market realities. Fair and balanced risk-sharing mechanisms help ensure projects are delivered on time, on budget, and with the greatest value for the public.

TARBA recommends that municipalities adopt AC price adjustment provisions modelled on MTO contract practices, including:

Use of the published Ontario AC Price Index as the basis for adjustments;
A five per cent threshold before adjustments apply;
Symmetrical upward and downward adjustments to protect both owners and contractors; and
Application of adjustments only to the AC component of hot mix asphalt.

This proven approach promotes fairness, transparency, competition, and long-term value for municipal infrastructure investments.

Recognizing that many projects have already been tendered or awarded under existing procurement frameworks, TARBA encourages municipalities and contractors to work collaboratively to review current contracts and explore reasonable adjustments given the unprecedented increase in AC prices in 2026. A willingness to revisit pricing assumptions that have been materially affected by extraordinary market conditions can help ensure projects proceed as planned, maintain competitive contractor participation, and avoid unnecessary project delays or disruptions.

Municipalities can further strengthen outcomes by streamlining procurement timelines. Reducing the gap between bid closing, award, and project start helps ensure pricing reflects current conditions, minimizing the need for contractors to include contingency premiums.

By working together, we can implement fair and modern procurement practices and continue delivering the critical transportation infrastructure our communities rely on.

New TV Ad Highlights How Recycled Materials Can Slash Emissions, Save Money

Natasha Thurston — Mon, 06 Apr 2026 13:34:00 +0000

Recycled materials offer cost savings and environmental benefits without compromising quality

Toronto, Ontario — The Toronto and Area Road Builders Association (TARBA) is launching a new TV ad campaign to promote the use of recycled concrete and asphalt in municipal road building—an approach that would cut carbon emissions, while delivering better value for taxpayers. The ad will first air on April 6 on CP24, reaching millions of viewers and municipal decision makers across the Greater Toronto Area.

As Ontario faces mounting infrastructure demands, rising construction costs, and increasing pressure to meet climate targets, industry leaders are calling for smarter, more sustainable ways to build. Recycled Crushed Aggregates (RCA) is emerging as one of the most immediate and practical solutions available today.

Despite being widely used in major projects like Ontario’s highways and airports, most municipalities either prohibit or restrict RCA use. The new TV ad campaign is designed to raise awareness among decision-makers and the public that sustainable infrastructure solutions already exist—and are ready to scale.

“RCA is proven, available, and cost-effective—the gap isn’t performance, it’s policy. Updating municipal rules is the fastest way to unlock RCA’s full potential,” said Raly Chakarova, Executive Director of TARBA. “RCA strengthens local supply chains by reducing dependence on long-haul materials—something that matters more than ever in a volatile fuel cost environment.”

If municipalities increased RCA use to just 20%, Ontario could save more than $260 million annually, while reducing carbon emissions equivalent to taking 15 million gas cars off the road.

RCA is produced by reclaiming asphalt and concrete from old infrastructure and processing it for reuse. Its advantages are clear and proven:

● Lower costs: Reduces transportation and material expenses, helping municipalities stretch limited infrastructure budgets.

● Reduced emissions: Shorter truck hauling distances significantly cut greenhouse gas emissions and congestion.

● Preserves natural resources: Extends the life of non-renewable materials.

● Diverts waste from landfills: Reuses materials that would otherwise contribute to Ontario’s shrinking landfill capacity.

● Proven performance: Engineering studies confirm RCA performs comparably to primary aggregates.

The campaign is supported by leading industry partners, including Strada Aggregates, Amrize, and Dufferin, who are helping drive innovation and adoption across the sector.

“This isn’t a future solution—it’s already being used successfully in Ontario and across the world,” said Mario Pietrolungo, Vice President, Operations at Strada Aggregates. “The industry has the capacity to supply more RCA today. What’s needed is broader municipal acceptance and leadership to make it a standard choice on transportation projects.”

To learn more, visit RCAontario.ca.

About TARBA

The Toronto and Area Road Builders Association (TARBA) represents unionized contractors who build multimodal transportation infrastructure, including roads, transit, highways, bike lanes, and sidewalks, in the Greater Toronto Area and Simcoe County. TARBA advocates for policies and practices that promote safe, cost-efficient, and sustainable infrastructure development.

For media inquiries: info@tarba.org

Civil Construction Industry Welcomes Provincial Commitment to Standardize Municipal Construction Practices

Raly Chakarova — Tue, 13 May 2025 15:55:33 +0000

Toronto, ON—The civil infrastructure construction associations welcomed the Ontario government’s announcement that consultations will be launched with municipalities and industry to harmonize road building standards as part of the recently introduced Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025.

Ontario’s municipalities own and manage more public infrastructure than the federal and provincial governments combined, with, on average, more than 50 per cent of their budgets allocated to construction and infrastructure. While provincial standards exist, Ontario’s 444 municipalities have discretion in their implementation and have instead amassed hundreds of varying requirements for how to build and procure similar use projects, like roads, bridges, sewers and watermains. These differences cost taxpayers millions of dollars more, while reducing quality and productivity and increasing waste and carbon emissions.

The Toronto and Area Road Builders Association (TARBA), Greater Toronto Sewer and Watermain Contractors Association (GTSWCA), and the Heavy Construction Association of Toronto (HCAT) have advocated that following provincial standards, jointly administered by the Ontario Ministry of Transportation and the Municipal Engineers Association, will result in reduced building costs and faster construction timelines through efficiencies and economies of scale.

“This announcement builds on the government’s ongoing commitment to reduce red tape and build the critical infrastructure our communities need. We look forward to working with the provincial government and the ministry as part of the consultation process,” said Raly Chakarova, Executive Director at TARBA. “Breaking down barriers by harmonizing practices across municipal boundaries is a real solution that will bring in faster construction timelines and create significant cost savings for taxpayers, particularly through initiatives such as the standardized and increased use of Recycled Crushed Aggregates.”

“This is a pivotal moment for infrastructure development in Ontario,” said Patrick McManus, Executive Director of the GTSWCA. “By standardizing construction specifications and contracts, we can reign in rising construction costs and lay the groundwork for sustainable growth and cost-effective infrastructure solutions, without fundamentally altering how we design, build, finance, or maintain our critical core infrastructure in the region.”

“This is the time for the provincial and federal governments to step in and ensure that municipalities have predictable and continuous infrastructure funding to get projects out the door, shovels in the ground, and keep everyone employed,” said Peter Smith, Executive Director at HCAT. “But municipalities need to drop their own barriers. There is no reason that a different asphalt type or watermain fitting needs to be used simply because a project crosses over Steeles Ave.”

Media Contact

For media inquiries or further information, please contact Patrick McManus, GTSWCA at patrick.mcmanus@oswca.org and Raly Chakarova, Executive Director, TARBA at raly@tarba.org.

About GTSWCA

The Greater Toronto Sewer and Watermain Contractors Association (GTSWCA) serves as a collective voice for its members who build water, wastewater, and stormwater infrastructure across the Greater Toronto Area. www.oswca.org

About HCAT

The Heavy Construction Association of Toronto (HCAT) represents contractors in the heavy civil engineering construction sector, including bridge construction and rehabilitation, tunnels, marine construction, and structure foundations. HCAT advocates for best practices in infrastructure development while addressing industry challenges, providing educational opportunities, and promoting safety and sustainability. www.hcat.ca

About TARBA

The Toronto and Area Road Builders Association (TARBA) is the collective bargaining agent on behalf of unionized contractors involved in the new construction and maintenance of transportation infrastructure in the Greater Toronto and Simcoe Areas. TARBA advocates for policies and practices that promote safe, efficient, and sustainable infrastructure development. www.tarba.org

Sustainability in Action: Using Recycled Crushed Aggregates in Linear Infrastructure

Raly Chakarova — Fri, 09 May 2025 17:21:54 +0000

On May 8, industry professionals joined an in-depth webinar focused on the use of Recycled Crushed Aggregates (RCA) in Ontario’s linear infrastructure projects. The session featured Executive Director Raly Chakarova and Salman Bhutta of Engtec, who shared findings from their 2024 research report on RCA gradation equivalency. The report demonstrates that RCA can match the performance of primary aggregates while delivering measurable economic and environmental benefits.

The session provided engineers and infrastructure stakeholders with the latest insights and practical guidance on integrating RCA into transportation construction. Attendees learned how RCA supports sustainable construction, reduces project costs, and advances circular economy goals—without compromising on quality or reliability.