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October 1, 2008

Canadian Construction Association Board Meeting

Federal government should full comply with local bid depository rules, CCA says

WINNIPEG

The federal government should fully comply with the rules of any bid depository it may use, the Canadian Construction Association (CCA) has decided.

“The CCA supports bid depositories where they are in use,” said Paul Charette, chairman of CCA.

“We have to think outside of the box on this — we cannot have Public Works accepting non-compliant bids.”

Public Works and Government Services Canada has advised the CCA that it supports the use of bid depositories, but with certain conditions, ranging from not naming subcontractors in a bid to a stipulation that “the local bid depository shall not show any preference to, nor impose any disadvantage on, any bidder.”

The Treasury Board Advisory Committee on Contracts-Construction Subcommittee had been reviewing the federal government’s use of bid depositories since January 2007.

It informed the CCA in March 2008 of the new conditions under which it will continue to support bid depository use.

The fact that no bid would be disqualified by the government, even if it is non-compliant, may reduce government liability, but it weakens the bid depository system, various CCA members said at a recent association meeting.

Dave Pelletier, with the standard practices committee of the CCA, said there is no point in using a system that has no teeth.

The fear that the federal government might just move on from using bid depositories if it is required to fulfill all local bid requirements is not lost on anyone at the CCA, Charette said.

“We are walking a fine line on what we are asking for and what they might do,” he said.

Manley McLachlan, president of the British Columbia Construction Association, has recently been in talks with Public Works about his association’s e-bidding system plans and local bid depository use.

He asked the CCA to pursue and support further discussions with the government about complying with all the rules of a local depository.

“It would be disappointing to roll out our e-bidding system and then not have Public Works use it,” McLachlan said.

CCA’s board of directors supported a position to inform Public Works that if it specifies the use of bid depository “it shall fulfill its obligation as outlined in the rules of procedures” including not accepting non-compliant bids.

Members of the CCA staff, the general contractors and trade contractors councils will meet with Public Works to discuss bid depository use further.

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