Aboriginal Relations and Partnerships are an Important Aspect of SNC-Lavalin Competitiveness

 

 

 

 

Blog – Aboriginal Relations and Partnerships are an Important
Aspect of SNC-Lavalin Competitiveness

Stephen Lindley, Vice President, Aboriginal & Northern Affairs

Under the pressure of falling energy and commodity prices and shrinking resource and tax revenues, the number and size of engineering/construction contracts is declining in Canada, in both the private and public sector marketplace. Firms are competing harder and harder to chase fewer and fewer projects. This tends to increase the number of firms competing for the tenders that are issued publicly, and puts pressure on charge-out rates and other competitive variables, all of which generally reduces our chances of success. It can also negatively affect project profitability when we are successful. Although rewarding, as we all know, it’s a tough way to make a living. As a result, Canadian engineering and construction firms are looking for new, unique and creative ways of doing business.

It is increasingly understood by business leaders in Canada that to succeed with resource development, it is important to manage relationships and share benefits with our Aboriginal peoples, while developing sustainable projects. Not only is this important for the permitting and approval of specific projects, it is important for the future development of Canada’s resource sector as a whole. From Enbridge’s stalled Northern Gateway Pipeline Project in B.C. we are learning the lesson of insufficient consultation. From the federal EA process for the Taseko New Prosperity Copper-Gold Project in B.C., we have seen the challenges that result from the inadequate incorporation of aboriginal culture and traditional land use into project design. From the Keeyask Hydro Project in northern Manitoba we are learning the benefit of including aboriginal communities in project ownership and control of a major project. Today, finding the balance through aboriginal relationships and partnerships is one of the key factors to project success.

At SNC-Lavalin, from many years of experience, we have come to understand the importance of strong aboriginal relations. Not only does it bring credibility to our own work and reputation, but it can also bring credibility to the Owner and the Project as a whole. From our involvement in the design and construction of the Five Nations Energy Inc. high voltage transmission line, along the west coast of James Bay, we learned that an aboriginal proponent can own 100% of a major project and succeed, with the help of strong partners, like SNC-Lavalin. From our involvement in the engineering, procurement and construction of the Evergreen transit line in the Greater Vancouver area, and a number of other similar projects, including those where we have executed our Local Resource Development Initiative (LRDI), we are learning the importance of training and community capacity development to maximize aboriginal inclusion through employment and local contracting.

Perhaps even more creative is our on-going efforts to establish majority aboriginal-owned partnerships where the partners develop and share in the ownership and control of a project. Although these types of project remain rare in Canada, we believe that the development of projects together with aboriginal partners can result in a strategic edge against our competition. In a perfect world, these types of partnerships could even result in sole-source project awards. If successful this would reduce, even eliminate competition, allow us to charge competitive rates, allow us to achieve a reasonable profit, and at the same time develop an industry and community-wide reputation as a “partner of choice”. In a competitive world where finding different and creative approaches to developing, winning and executing projects, is important, and where our reputation may be our most important asset, aboriginal relationships and partnerships are increasingly being recognized as an important aspect of the future of SNC-Lavalin’s competitiveness throughout Canada and beyond.

Bio

Stephen is a Vice President in the External Relations and Strategy, responsible for Aboriginal & Northern Affairs. He has been with SNC-Lavalin for nearly 30 years. Steve is responsible for developing and maintaining external corporate relations and partnerships with aboriginal organizations and businesses throughout Canada. He is also responsible for corporate strategy, policy, marketing and business development in the aboriginal and northern marketplace. Stephen is currently Board Co-Chair of the national Aboriginal Human Resource Council, and a member of the Board of Directors of the Canadian Chamber of Commerce, the Canadian Council for Aboriginal Business, HIPPY Canada, and several aboriginal majority-owned joint venture companies. Stephen was Adjunct Professor in the University of Toronto Civil Engineering Faculty from 2001 to 2012 and he is also past Director of SNC-Lavalin’s Environment Group.