Advocacy / Risk Management

Risk Management

Contract Risk

Contract risk remains one of the most significant issues facing Alberta’s construction sector because it directly affects project delivery, financial stability, and workforce capacity.
 

Over the past decade, ACA has consistently raised concerns about the shifting of disproportionate risk down the supply chain, particularly through onerous contract clauses, unclear scope definitions, and inconsistent application of procurement rules.

 

When contractors are required to absorb risks they cannot reasonably control, such as price volatility, design changes, permitting delays, or compressed schedules, it creates uncertainty that cascades across entire project teams. This reduces competitiveness, discourages bids, inflates contingency pricing, and strains relationships between owners, general contractors and trades.

 

Ultimately, unmanaged contract risk undermines the outcomes that the government and owners want: predictable budgets, timely delivery, and high-quality work.