Financial Recovery for Construction & Trades
Construction businesses are sitting on the largest unclaimed SR&ED pool in Canada. Most never file.
Average recoverable per year
$32,000 – $140,000 / year
Median across Canadian construction CCPCs with $2M–$15M revenue. SR&ED dominates the upper range; first-time filers often see 6-figure first-year refunds.
Why construction businesses leak money
Construction is the most under-claimed sector for SR&ED in Canada — by a wide margin. The CRA accepts SR&ED claims for any systematic process improvement intended to resolve a technical uncertainty: testing new joinery techniques, prototyping pre-fab assemblies, optimizing concrete mix for unusual conditions, custom software for project tracking. Most contractors assume "SR&ED is for tech companies" and never explore eligibility.
Beyond SR&ED, construction businesses carry unique leak categories: subcontractor vs. employee classification (CRA audits frequently find misclassification), equipment depreciation strategies that don't optimize across project years, and supplier contracts that auto-renew at retail rates instead of negotiated volume tiers.
Top recoverable leaks in construction
Unclaimed SR&ED for process and methods work
$22K–$95K/yrCustom assembly methods, custom software for project management, materials testing, prototype builds — all qualify if the outcome was uncertain at the start. Median first-year SR&ED claim for an eligible construction CCPC is $42K.
Subcontractor classification review
$4K–$18K/yrMisclassification of long-term subcontractors as 1099 instead of T4 triggers CRA reassessment exposure. Restructuring the relationship — without changing the work — recovers payroll tax, EI, and CPP optimizations of $4K–$18K/year.
Equipment depreciation optimization
$5K–$25K/yrMost construction businesses use straight-line depreciation by default. Strategic CCA class selection (typically Class 53 for manufacturing equipment, accelerated investment incentive for new acquisitions) can defer or reduce $5K–$25K/year in tax.
Supplier and equipment financing renegotiation
$6K–$30K/yrThree-year-old supplier contracts (lumber, concrete, aggregates, equipment leases) typically carry 12–28% accumulated price drift. Re-tendering or renegotiating top 5 suppliers recovers $6K–$30K/year.
Grants most relevant to construction
Related research
Tax Credits
SR&ED Tax Credit in 2026: Who Qualifies and How Much You Can Claim
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Tax Optimization
Salary vs. Dividends: Owner Compensation for Canadian CCPCs in 2026
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Cost Recovery
The Hidden Cost of Vendor Auto-Renewal Clauses (and How to Neutralize Them)
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