Understanding the Drivers of Transit Construction Costs in Canada: A comparative study

Abstract

The expansion of mass transit infrastructure is crucial for accommodating the rapidly growing population in Canadian metro areas and promoting a shift toward sustainable modes of transportation. However, these initiatives are becoming increasingly costly, threatening the timely delivery of necessary infrastructure to bridge the current sustainable mobility gap. Our investigation delves into Metrolinx's project portfolio in the Toronto area, comparing it with transit initiatives in global cities. We categorize expenses into soft and hard costs, identifying specific cost drivers linked to project scope and design choices. Comparisons with peer cases reveal four primary cost-driving factors: design choices, procurement, risk management practices, and external constraints. Drawing upon international cases where rapid transit is constructed more affordably, our study proposes reforms in project planning, delivery, and cost estimation that can be implemented across Canada. It particularly emphasizes reforms in project planning and delivery to expedite and reduce construction costs, and strategies to enhance cost estimation for better project management.