The province's construction industry says it is on the verge of a catastrophe that could lead to job losses.

In a letter to its members, the Manitoba Heavy Construction Association said a perfect storm is brewing. It continues to add that there is not enough work available, which could lead to layoffs, or workers leaving the province.

The organization blames the city, for not awarding contracts faster during the short construction season.

"The City of Winnipeg's budget award process has been nothing short of appalling,” association president, Chris Lorenc, said in a letter to CTV Winnipeg.

"It's very constraining we're aware of that,” said Janice Lukes, Winnipeg's infrastructure chair.

Janice Lukes explained the city is trying to speed up the current system for awarding contracts. A report with recommendations is expected in September.

"We're in the process of reviewing it and looking at a new process to get projects out sooner,” Lukes added.

Meanwhile the Mayor's office said the $105 million earmarked for roads this year, 90 per cent of the work has been tendered or awarded.

The association's letter also targets the province, "we have a new provincial government, which while in the throes of reviewing the fiscal situation it is in, has cut the highway program by $50 million - 10% - and has apparently stalled further tenders pending review."

"I can't respond to irrational arguments of fear,” Premier Brian Pallister said.

He disputed the claims.

"Oh bah humbug, this is the biggest commitment to highway construction, second biggest in the history of Manitoba that we're making this year,” he added.

Manitoba Heavy Construction said Ottawa's infrastructure goals are still unclear too and it is urging members to lobby all levels of government.