Confronting cost escalation in Canadian water infrastructure projects

Confronting cost escalation in Canadian water infrastructure projects

(2025)

Confronting cost escalation in Canadian water infrastructure projects

Unprecedented increases in water infrastructure costs — driven by inflation, supply chain disruptions, labor shortages and other factors — are placing growing pressure on municipalities across Canada. In response, many are adopting new strategies to manage financial risk and maintain project delivery. This report draws on insights from survey results and roundtable discussions with Canadian Water Network’s Municipal Water Consortium, a network of leaders from 26 of Canada’s largest water utilities. The findings were further validated at the 2025 Blue Cities conference and the Consortium Leaders’ Group meeting held on May 13, 2025, where additional cost drivers and mitigation strategies were identified and incorporated through collective input.

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