B.C. cancels construction contracts for five major health projects amid rising cost pressures

By CaDCR Staff Writer

May 4, 2026

Canadian Design and  Construction Report staff writer

The British Columbia government has cancelled construction contracts for a major hospital redevelopment and several long-term care facilities, as budget pressures force the province to reassess how it delivers large capital projects.

Affected projects include Phase 2 of the Burnaby Hospital redevelopment, and long-term care homes planned in Chilliwack, Abbotsford, Kelowna and Delta.

The government had said in a February budget that timelines for some long-term care projects would be “revised,” but did not disclose at the time that existing pre-construction contracts would be terminated.

Phase 2 of the Burnaby Hospital redevelopment was awarded in June 2024 through an alliance model led by PCL Constructors Westcoast Inc. and Parkin Architects Western Ltd., working in partnership with Fraser Health and the Province of British Columbia.

Phase 2 is the largest component of the overall redevelopment with a budget of $1.7 billion, funded by the Province of B.C., the Burnaby Hospital Foundation and the BC Cancer Foundation. The scope of work includes the new Keith and Betty Beedie Acute Care Tower, the BC Cancer–Burnaby McCarthy Centre, and significant upgrades to the emergency department, medical imaging and support services.

Read more on CaDCR