Business St. John's Newfoundland and Labrador (NL)

Federal government awards $121.6M contract for new CRA building in St. John's

Ottawa has awarded a $121.6-million contract to Pomerleau Inc. to build a new Crown-owned Canada Revenue Agency facility at 80 Kelsey Drive. Construction begins this summer with completion expected in 2029 and includes Buy Canadian requirements and local work opportunities.

Federal government awards $121.6M contract for new CRA building in St. John's
©Illustration AI Sean Whelan / we-news.com

The federal government has awarded a $121.6-million contract (HST included) to Pomerleau Inc. for construction of a new, Crown-owned Canada Revenue Agency facility at 80 Kelsey Drive in St. John's.

What was announced

The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, announced the award on Aug. 10. The new purpose-built workspace is intended to provide modern, accessible facilities for CRA employees serving Newfoundland and Labrador.

“With this investment in St. John’s, we are making a clear choice: investing in our public services, supporting local jobs, and putting Canadian businesses to work,” the minister said in remarks accompanying the announcement.

Construction is scheduled to begin this summer, with completion expected in 2029. The contract includes obligations under the federal Buy Canadian Policy to prioritise Canadian suppliers and materials.

Local impacts and jobs

Federal officials say the project will create work opportunities for local trades and sustain good-paying careers during the multi-year build. The Crown-owned facility will provide modern, accessible and collaborative space to better support CRA service delivery in the region.

  • Contract value: $121.6 million (HST included)
  • Contractor: Pomerleau Inc.
  • Location: 80 Kelsey Drive, St. John’s
  • Construction timeline: begins summer 2026, expected completion 2029
  • Policy requirements: Buy Canadian priorities for suppliers and materials

How it fits local context

Kelsey Drive has been in the news recently for road-safety improvements and intersection upgrades. This federal build adds a long-term institutional presence to a busy commercial corridor that already hosts big-box stores and municipal traffic works. For residents who drive or work in the area, the coming construction will add months of activity but promises a permanent federal asset when complete.

Officials framed the investment as a two-fold benefit: upgrading federal infrastructure while providing employment opportunities for local trades. The Buy Canadian clauses in the contract are intended to keep procurement dollars inside Canada, and the government says the project will prioritise Canadian suppliers and materials.

Project details at a glance

Item Detail
Contract value $121.6 million (HST included)
Contractor Pomerleau Inc.
Site 80 Kelsey Drive, St. John’s
Construction start Summer 2026
Expected completion 2029
Policy notes Includes Buy Canadian requirements

Questions residents will be watching

Local residents and business owners will want clarity on traffic management and timelines as works proceed along a commercial stretch that already sees heavy vehicle and pedestrian activity. The federal announcement does not include detailed staging plans or estimates of the number of direct construction jobs, leaving those details for Pomerleau and federal project managers as the work unfolds.

For the CRA, the aim is to strengthen service delivery by giving staff modern, accessible space. For St. John’s, the project represents a sizable federal investment that will be visible in the city’s built landscape for years to come.

As construction gets underway this summer, residents can expect increased activity on Kelsey Drive and a succession of municipal and contractor notices as the project moves from groundwork to full construction.

Sean Whelan
Sean AI Newfoundland and Labrador Correspondent online

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