Ontario’s infrastructure challenge is often framed in terms of funding or approvals, but increasingly, the issue is not whether projects exist. It is whether they are reaching the market in a way that allows them to be delivered efficiently. Procurement plays a central role in that process, shaping how projects transition from planning into construction and ultimately determining whether infrastructure can be delivered on time and at scale.
Unpredictability Is Driving Cost and Delay
Infrastructure delivery depends on advance planning. Labour, equipment, and materials require long lead times, and firms organize their capacity based on expected project pipelines. When procurement is inconsistent or delayed, that planning becomes significantly more difficult, forcing firms to react rather than prepare.
Across Ontario, projects are often brought to market late, award decisions are delayed, and procurement pipelines lack visibility. These conditions make it harder to secure labour, coordinate supply chains, and sequence work efficiently. As timelines compress, projects begin competing for limited capacity, increasing costs and raising delivery risk. The impacts extend beyond individual projects. Congestion alone is estimated to cost Ontario approximately $56.4 billion annually, with projections reaching $108 billion by 2044, highlighting how delays in infrastructure delivery accumulate into broader economic pressures.
A Large Pipeline, But Limited Throughput
Ontario has a substantial infrastructure pipeline, but the pace at which projects move into construction remains a challenge. As of October 2025, there were 25 major projects in active procurement and pre-procurement stages with a combined value exceeding $30 billion, alongside an additional 20 projects in early planning. At a broader level, 30 major projects valued at approximately $58 billion were identified as being in pre-construction or construction, with another $10 billion still in procurement.
Despite this level of investment, a significant share of infrastructure remains tied up in pre-delivery stages rather than advancing into active construction. When procurement timelines slip, projects are delayed not only in isolation, but across the system. This reduces overall throughput, slows the delivery of critical infrastructure, and increases costs as project scopes evolve and asset conditions deteriorate over time.
The Cost of Late Tendering
The timing of procurement has a direct impact on delivery outcomes, particularly in a sector constrained by a limited construction season. When tenders are issued late or awards are delayed, projects are pushed into compressed timelines, forcing multiple projects to compete for the same labour and equipment at the same time. This concentration of activity reduces productivity, increases costs, and raises the likelihood that projects will extend into subsequent construction seasons.
Earlier and more predictable tendering helps address these challenges by providing firms with the visibility needed to plan workforce allocation, secure materials, and coordinate project sequencing. When timelines are clear and reliable, contractors are better positioned to submit competitive bids without incorporating additional risk premiums, improving both cost outcomes and overall project performance.
Award Delays and Declining Competition
The period between bid closing and project award plays a critical role in maintaining delivery momentum. When awards are delayed, contractors cannot hold labour and equipment indefinitely, leading to the redeployment of resources and reduced certainty around project start timelines. These delays can weaken subcontractor commitments and create ripple effects across multiple projects.
There are also clear indications that procurement challenges are affecting market participation. Over the past decade, the average number of bidders on major infrastructure projects has declined from more than five proponents in 2014 to approximately 2.5 between 2020 and 2023. In some cases, large infrastructure projects, particularly those exceeding $1 billion in value, have received only a single bid. This reduction in competition limits pricing pressure and signals that procurement processes may not be aligning effectively with industry capacity and risk tolerance.
Strengthening Procurement to Improve Delivery
Procurement is not simply a procedural step in infrastructure delivery. It is a central mechanism that determines whether projects can move forward in a coordinated and efficient manner. When procurement is predictable and aligned with industry realities, it supports better planning, improves competition, and enables more consistent delivery outcomes.
Improving procurement practices through earlier tendering, faster and more reliable award timelines, and clearer visibility into project pipelines would strengthen the system’s ability to deliver infrastructure at the pace required to support growth. These changes do not require additional funding, but rather a more effective alignment between how projects are planned and how they are brought to market.
For Further Information
For more on procurement, infrastructure delivery, and system-wide capacity constraints, please refer to the Vaughan Chamber of Commerce 2025 Infrastructure Report: https://vaughanchamber.ca/wp-content/uploads/Vaughan-Chamber-of-Commerce-Infrastructure-Report-2025.pdf