001-48_126_RENEW_SEPT-OCT26_PT - Flipbook - Page 35
The issue is not that risk is increasing. It is that risk is changing
shape. Labour constraints, remote logistics, modular construction
and operational restrictions tied to active military environments are
introducing exposures that are difficult to transfer after the fact.
Major air infrastructure projects are technically
complex, but the more significant challenge lies in
how they are being delivered.
This is where the idea of “Risk Advisory” becomes
critical. Instead of treating insurance as a transaction, it
reframes brokerage as a function that helps structure,
control and continuously monitor risk across the lifecycle
of a project.
A different kind of program
One of the clearest examples is the Department of National Defence’s Phase Two housing program, which aims to
deliver approximately 7,500 new residential housing units
across roughly 25 locations nationwide.
At a glance, this looks like a large-scale residential
buildout. In reality, it operates under a very di昀昀erent set of
constraints.
Major concentrations of work are planned at bases such
as Valcartier, Petawawa, Edmonton, Kingston and Gagetown. Much of this development is occurring on existing
base lands, where new housing must be integrated into
aging infrastructure systems originally built decades ago.
RENEWCANADA.NET
To meet aggressive delivery timelines, DCC has tapped
Build Canada Homes, a Crown corporation, focused on
accelerating a昀昀ordable housing though construction innovation, to explore prioritizing modular and prefabricated construction methods. While this approach improves speed and
e昀케ciency, it may also shift risk into areas that are not always
well addressed by standard project structures. For example,
materials are manufactured o昀昀-site, transported over long
distances and integrated into live environments, tying into
existing operational utilities.
Although utilizing o昀昀-site prefabrication can help address some of the labour shortages and take advantage of
the building program scale to create e昀케ciencies, the result
could be a more fragmented risk pro昀椀le. Responsibility is
spread across manufacturers, transport providers and on-site
contractors. Interface points multiply. Warranty structures
become more complex.
This fragmentation is also where insurance program structure starts to matter. When it comes to multiphase, multisite
initiatives, covering multiple locations and project phases,
a single structure can o昀昀er signi昀椀cant advantages over procuring cover on a per project basis. A well-crafted program
can reduce coverage gaps and overlaps between projects,
simplify claims handling and lock in terms for a multiyear
delivery window.
At the same time, workforce pressures are becoming more
pronounced. In markets like Cold Lake (future homebase
to the F-35 昀椀ghter jet 昀氀eet), the in昀氀ux of labour required to
support housing and broader base upgrades is expected to
further strain local capacity, where there is already a skilled
labour shortage. Contractors are increasingly responsible for
solving their own workforce logistics, from accommodations
to transportation, and this introduces additional cost and execution risk not always clearly addressed in contracts. These
are not edge cases, they have become the baseline conditions
for working in the North.
The same pattern is playing out across major air infrastructure projects.
SEPTEMBER/OCTOBER 2026 – RENEW CANADA 35
