November 30, 2009

Procurement

British Columbia construction bidding system goes electronic

RICHARD GILBERT

staff writer

An electronic bidding system (EBS) developed by the B.C. Construction Association (BCCA) has been used for the first time in British Columbia to close two construction projects.

“The system was real handy and far more streamlined than we had expected,” said Brad Sellars, project manager with Houle Electric.

“The system eliminated the last minute rush and the stress of the last hour. There are definitely benefits and disadvantages as to how it was set up, but it was a good experience and I would do it again.”

Two projects at the Richmond Hospital for the Vancouver Coastal Health Authority were closed successfully through the EBS for mechanical and electrical contractors.

Sellars said Houle Electric submitted bids for electrical work on both projects.

“I found it took a lot of the leg work out of making phone calls to find out who else was bidding,” he said.

The new internet-based system was built by the BCCA in 24 months and was designed around the existing rules of the Bid Depository System

“Just like the former version of the bid depository, there was no room for deals behind the scenes or shopping the price,” said Sellars.

The system is designed to increase fairness and transparency for contractors and owners. It provides public access to all bidders and allows the BCCA to communicate with all users on-line, in order to clarify the scope of work and other bidding matters.

As the general contractor, Smith Brothers and Wilson received and reviewed bids on these two construction projects.

The bids for both jobs were simple lump sum contracts.

Project estimator Dave Quon said that under the current Bid Depository system, the electrical and mechanical bids are submitted on closing day, which creates a last minute scramble.

“We got the pricing from the e-bidding system two days in advance,” said Quon.

“An example of one of the things that helped us out was we were able to pull out a bid that was too low. We had the time to pull out the bid, one day before closing.”

General contractors are informed automatically through e-mail when a trade contractor bid changes, such as a withdrawal or a missed bid.

Another advantage of the system is it simplifies and speeds up the procurement process.

“On the first go round it was plain and simple,” said chief estimator Clark Campbell with Smith Bros. and Wilson

“We just had to sort the bids in a spreadsheet that was provided by the VRCA (Vancouver Regional Construction Association).”

A bid summary spread sheet, with a side by side comparison of all trade contractor bids, is listed by trade with pricing.

“By creating mandatory fields from a menu, we have eliminated the vast majority of errors that were made in the past,” said Manley McLachlan, president of the BCCA.

“This will enhance the quality of the tendering process.”

In terms of security, all bidder and contractor files are protected by a login and password, which is as secure as any banking system.

The system has the capacity to receive and acknowledge bonds, which are legally binding.

Time is also saved because there is no need to spend hours driving around to pick up bids and sort them out.

Smith Bros. and Wilson received all the required information from the system in 30 minutes from closing in mid November.

The bidding system meets the business requirements of the construction industry, but it also presents an opportunity for a more sustainable approach to business.

“We are moving from a manual system to an electronic system, which eliminates the physical work, as well as the paper work that goes with it,” said McLachlan.

With the support of the BCCA and the VRCA, the Vancouver Coastal Health Authority is the first organization in B.C. to use the electronic bidding system.

Training sessions geared towards contractors are being offered by online video conference through the BCCA and the VRCA.

“Overall, I am very positive and behind this initiative, said Campbell.

“I wish more jobs could close this way.”

The Vancouver Health Authority has a demolition and renovation project for the Vancouver General Hospital currently in the system.

It will close in a couple of weeks. Another project will close in late December or early January.

The new system will initially be implemented for use on public projects that specify the use of a bid depository.

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