Major Infrastructure Projects in Canada: Economic Outlook and Opportunities for the Construction Sector

Introduction

October 2025 marks the beginning of an exceptional period for the construction sector in Canada. The successive announcements of mega-infrastructure projects by federal, provincial, and municipal governments, combined with major private investments, are shaping a particularly favourable economic landscape for the industry. With over $180 billion in projects confirmed or in advanced planning stages for the next five years, Quebec and Canadian contractors are facing unprecedented opportunities, but also considerable logistical and operational challenges.

Overview of Infrastructure Investments 2025-2030

Data compiled by Infrastructure Canada and analyzed by the Canadian Construction Association reveal exceptional growth in investments.

Sectoral Breakdown of Investments

The $180 billion announced is distributed across the following sectors:

• Transportation and Mobility ($65 billion): Expansion of public transit networks, highway repairs, port and airport infrastructure
• Energy and Green Transition ($42 billion): Smart electrical grids, renewable energy production, green hydrogen infrastructure
• Water and Sanitation ($28 billion): Modernization of treatment plants, renewal of water and sewer networks
• Public Buildings ($25 billion): Hospitals, schools, community centres, government buildings
• Digital Infrastructure ($12 billion): Fibre optic deployment, 5G networks, data centres
• Social and Affordable Housing ($8 billion): Construction of new units and renovation of existing stock

Key Projects in Quebec

Quebec is capturing a substantial share of these investments with several structuring projects.

Montreal Metro Blue Line Extension ($6.4 billion)

Confirmed in September 2025 after years of planning, this 5.8 km extension project with five new stations represents the largest public transit investment in Montreal in decades. Major work will begin in spring 2026 and continue until 2032.

Opportunities for Contractors:

• Tenders for excavation and tunnel boring machines starting January 2026
• Supply and installation of specialized electrical and mechanical systems
• Construction of stations with complex architectural requirements
• Coordination with existing urban infrastructure

Quebec City Tramway ($4.2 billion)

Intensive construction phase in 2025-2027 for this 23 km network connecting several boroughs. More than 800 companies are directly or indirectly involved in this project, which is transforming the capital's urban landscape.

Modernization of the Hydroelectric Network ($8.5 billion - Hydro-Québec)

Massive investments to modernize existing facilities and develop new generation capacity to meet the growing demand for electrification. This includes the construction of new power plants, strengthening the transmission network, and installing smart energy management systems.

Replacement of the Île-aux-Tourtes Bridge ($1.8 billion)

Critical project to replace an aging infrastructure connecting the island of Montreal to Vaudreuil. Construction of a new modern bridge with reversible lanes and public transit infrastructure. Scheduled to open in 2027.

Major Projects in the Rest of Canada

Ontario: GO Transit Network Expansion ($12 billion)

Massive expansion of Toronto's regional transit network with electrification of several lines, increased frequencies, and construction of new stations. This project will create thousands of direct and indirect jobs over an eight-year period.

Alberta: Edmonton-Calgary Hydrogen Corridor ($7.5 billion)

Revolutionary infrastructure for the production, transportation, and distribution of green hydrogen. This project positions Alberta as a North American leader in the hydrogen economy and requires specialized skills in heavy industrial construction.

British Columbia: Broadway Subway Extension ($4.8 billion)

Extension of Vancouver's SkyTrain by 5.7 km with six new stations. The project is in an intensive construction phase with complex technical challenges related to tunnelling in a dense urban environment.

Atlantic Provinces: Atlantic Energy Corridor ($6.2 billion)

Interconnection of the Maritime provinces' electrical grids to optimize the use of renewable energy sources and improve system resilience. Includes over 1200 km of submarine and terrestrial transmission lines.

Economic Impact on the Construction Sector

Job Creation and Labour Force Pressure

According to projections from BuildForce Canada, these massive investments will create approximately:

• 125,000 new direct construction jobs by 2027
• Over 200,000 indirect jobs in related sectors
• An 18% increase in demand for skilled labour in Quebec

This demand will exacerbate the current shortage of skilled workers, forcing the industry to accelerate automation, fast-track training, and international recruitment. Wages in certain specialized trades have already increased by 12 to 15% in anticipation of this demand.

Pressure on the Supply Chain

The volume of materials required is creating significant pressure:

• Concrete and cement: Projected demand increase of 35% by 2027, requiring expansion of production capacity
• Structural steel: 28% increase in demand, with risks of shortages for certain specifications
• Specialized equipment: Delivery times for some mechanical and electrical equipment increasing from 6 to 18 months
• Specialized labour: Critical shortage of electricians, certified welders, and heavy equipment operators

Companies that anticipate these constraints by placing advance orders and securing their supplies will gain significant competitive advantages.

Challenges and Risks for Contractors

Increased Complexity of Tenders

Large public infrastructure projects impose rigorous requirements:

• Multiple selection criteria weighting quality, price, experience, and financial capacity
• Strict requirements for sustainable construction and carbon footprint
• Obligations to partner with local businesses and SMEs
• High financial guarantees and bonding capacities
• Demonstration of capabilities in managing complex projects using BIM methodologies

Preparing quality bids for these projects requires considerable resources. Traditional estimating tools struggle to manage this complexity, leading to the growing adoption of platforms like ConstructoAI that automate the analysis of tender documents, the extraction of requirements, and the generation of detailed estimates compliant with specifications.

Financial Risk Management

Mega-projects involve substantial financial risks:

• Volatility of material prices on projects spanning several years
• Severe penalties for delays (up to 1% of the contract value per week)
• Significant working capital needs due to payment delays on public contracts
• Geotechnical and archaeological risks in urban environments

Price adjustment clauses and hedging strategies are becoming essential. Companies must also strengthen their risk management and financial planning capabilities.

Strategic Opportunities for SMEs

Contrary to a common perception, Quebec SMEs can capture a significant share of these investments through several mechanisms.

SME Integration Clauses

Most major public projects include binding targets for SME participation:

• A minimum of 35% of the contract value awarded to regional SMEs
• Obligation for consortiums to demonstrate substantial involvement of local subcontractors
• Mentorship and knowledge transfer programs for SMEs
• Easier access to financing through dedicated government programs

Specialization and Market Niches

SMEs that develop specialized expertise are well-positioned:

• Sustainable building systems and green technologies
• Work in sensitive environments (hospitals, schools in operation)
• Heritage restoration and preservation
• Innovative construction technologies (3D printing, modular prefabrication)
• Integration of smart systems and IoT in buildings

Positioning Strategies for Contractors

1. Strengthening Operational Capabilities

• Technological Investment: Adoption of BIM platforms, AI estimation tools (like ConstructoAI), integrated project management systems
• Skills Development: Continuous training for teams on new construction technologies and environmental standards
• Certifications: Obtaining LEED, ISO 14001 (environment), ISO 45001 (health and safety) certifications
• Bonding Capacity: Collaborating with financial institutions to increase bonding limits

2. Strategic Partnerships

• Forming consortiums with complementary companies
• Alliances with engineering and architectural firms for integrated design-build offerings
• Partnerships with suppliers to secure supplies
• Collaborations with training institutions to develop talent pipelines

3. Market Intelligence and Strategic Monitoring

• Proactive monitoring of project announcements and government plans
• Participation in pre-tender consultations
• Competitive analysis and differentiated positioning
• Use of predictive analysis tools to anticipate market needs

The Role of Technological Innovation

Digitalization and Automation

Major infrastructure projects are accelerating the adoption of digital technologies in the sector:

• Mandatory BIM: Most major tenders now require complete BIM deliverables
• Drones and photogrammetry: Site monitoring, topographical surveys, safety inspections
• IoT and sensors: Real-time monitoring of concrete quality, structural conditions, safety
• AI for optimization: Site planning, resource allocation, risk forecasting

ConstructoAI is part of this evolution by offering contractors analysis and estimation capabilities that were previously reserved for large multinational corporations. The automated TAKEOFF module allows for the rapid processing of complex infrastructure project plans, while specialized AI agents ensure compliance with the multiple applicable standards and regulations.

Modular Construction and Prefabrication

To meet the tight deadlines of mega-projects, prefabrication is becoming standard:

• Bridge modules assembled in-factory and installed overnight
• Prefabricated metro stations to minimize urban disruption
• Smart facade panels with integrated systems
• Pre-assembled bathrooms and mechanical units for institutional projects

Medium-Term Outlook (2026-2030)

Confirmed Project Pipeline

Beyond the projects already underway, the 2026-2030 pipeline is robust:

• 2026: Launch of REM Phase 2 in Montreal ($5.1 billion)
• 2027: Start of work on the new Champlain Bridge rehabilitation phase ($2.3 billion)
• 2028: Construction of the Quebec City-Toronto high-frequency rail line ($12 billion)
• 2029-2030: Major renewal of Montreal's water main infrastructure ($8 billion)

Evolution of Financing Models

A trend towards more sophisticated public-private partnerships (PPPs) with optimized risk sharing and remuneration based on long-term performance. These models encourage innovation and construction quality but require increased financing and management capabilities.

Conclusion

The massive infrastructure investments announced in 2025 usher in an exceptional decade for the Canadian and Quebec construction sector. The opportunities are immense, affecting all segments of the industry, from large civil engineering firms to specialized SMEs.

However, capitalizing on these opportunities requires preparation, innovation, and operational excellence. Companies that invest now in their technological capabilities, teams, and processes will position themselves as leaders in this new era of construction.

Tools like ConstructoAI are becoming essential allies, enabling contractors to manage the growing complexity of projects, ensure compliance with multiple requirements, and produce competitive and accurate estimates that protect their margins while winning contracts.

The future of Quebec and Canadian construction is promising. Companies that seize this opportunity with vision and determination will experience exceptional growth in the years to come.

To discover how ConstructoAI can help you gain a competitive edge on major infrastructure projects, manage the complexity of tenders, and optimize your operations for this period of intense growth, contact our team for a personalized demonstration of our estimation, compliance analysis, and project management solutions.