The use of mass timber in construction is gaining momentum, with numerous high-profile projects emerging across Canada. It is becoming more commonly used in residential, commercial, and institutional developments, causing insurers to take a closer look at how it performs over time — particularly when it comes to water exposure and fire risk.
What is mass timber?
Mass timber is a category of engineered wood products created by layering, bonding, and compressing smaller pieces of wood into large structural elements such as panels, beams, and columns. These components are designed to match or even replace traditional materials like concrete and steel in a wide range of building applications.
Several factors are driving the increased use of mass timber:
- Lightweight and adaptable: Compared to concrete and steel, mass timber is lighter and more flexible, which can improve performance in high winds or seismic conditions.
- Built-in fire resistance: When exposed to fire, mass timber forms a protective char layer on its surface. This layer helps shield the inner core, allowing the structure to maintain its strength and meet fire-resistance requirements.
- Lower environmental impact: Wood naturally stores carbon, giving mass timber a smaller carbon footprint than more energy-intensive materials like concrete and steel. Its use can help reduce overall greenhouse gas emissions in construction.
- Efficient construction methods: Many mass timber components are prefabricated in controlled factory settings and assembled on-site. This can streamline timelines, reduce labour demands, and improve cost efficiency.
How mass timber is being used in Canada
Adoption of mass timber continues to expand nationwide. According to Natural Resources Canada, there are now more than 850 mass timber projects across the country, supported by nearly 20 manufacturing facilities.
British Columbia leads in both construction activity and production capacity, followed by Ontario, Quebec, and Alberta. While most developments are currently low- to mid-rise, taller buildings are becoming increasingly common.
Building regulations are also evolving to accommodate this growth. In 2020, the National Building Code of Canada approved encapsulated mass timber construction for buildings up to 12 storeys. More recently, provinces including British Columbia, Ontario, and Quebec have allowed encapsulated mass timber structures to reach heights of up to 18 storeys.
Understanding the challenges for insurers
Despite its advantages, mass timber presents some uncertainties from an commercial insurance perspective. Compared to traditional steel-and-concrete construction, there is still limited long-term performance data available.
Questions remain around:
- How these buildings perform over multiple decades
- Their vulnerability to moisture and water-related damage
- The cost and complexity of repairs following fire or other losses
Because this data is still developing, some insurers are taking a cautious approach. Reinsurance capacity — especially for mid- to high-rise projects — has been somewhat limited, which can influence both pricing and availability of coverage.
As more mass timber buildings are completed, occupied, and monitored over time, the industry’s understanding will continue to improve, however. This growing body of data will support more accurate risk assessment and, ultimately, greater confidence in the long-term performance of mass timber construction.
Construction surety bonds are a must for contractors and project owners
In Alberta, construction surety bonds play a key role in managing risk across construction projects. Three common types include labour and material bonds, performance bonds, and bid bonds.
Labour and material bonds protect subcontractors and suppliers if the contractor (principal) fails to pay for labour or materials. While other legal remedies exist, these bonds are among the most effective safeguards. Because terms can vary, it’s important to review the wording carefully to ensure proper coverage.
Performance bonds protect the project owner (obligee) if the contractor fails to meet contractual obligations. Claims may arise from insolvency, project delays, code violations, or refusal to complete the work. These bonds can be complex, so guidance from an insurance professional is often essential.
Bid bonds are used during the tendering phase. They assure project owners that a contractor submitting a bid has the financial stability and capability to complete the job if selected. This helps filter out unqualified bidders.
Each bond type involves detailed terms and conditions. Contractors and suppliers should seek expert advice from a qualified insurance broker such as those of us at Lane’s to ensure they are adequately protected at every stage of a project.
Your complete resource for construction surety bonds in Alberta
At Lane’s Insurance, we offer highly competitive rates on all three types of construction surety bonds, and we’ll work hard to make sure you get the right coverage for the right price. If you have any questions about this essential coverage, or if you have any other personal or commercial insurance needs to be met, please contact us at our Calgary, Banff, Edmonton and greater Alberta offices and we’ll be happy to discuss your specific needs in detail. Our goal is to provide each and every one of our clients with personalized service and the kind of affordable, enhanced protection that you deserve.
