Policy Statements

All Government, publicly funded agencies and Crown Corporations are required to contract out construction and major maintenance work and services to the private sector in order to ensure maximum efficiency and public accountability. Refer to BCCA policy on Thresholds for Procurement of Publicly Funded Projects.

 

BCCA recommends that non core business activities conducted by utility monopolies or government agencies be subject to regulations aimed at ensuring fair and equal competition in the marketplace. In particular, ‘cross-subsidization’ of non- core activities and abuse of market power by utilities or government agencies should not be permitted.

 

BCCA supports an economic and political system based on individual freedom and the competitive free enterprise system.

 

BCCA recommends that all forms of discrimination which are based on preference for ‘local’ businesses be eliminated.

 

BCCA favours the free and unfettered movement of construction materials, services and personnel throughout every region of Canada. Existing regional barriers and preference policies should be removed in accordance with an established timetable for their elimination.

With respect to publicly funded procurement, BCCA believes that:

 

• the location of a bidder in a particular region of Canada, or

• the local or regional content of the bid

 

BCCA supports the privatization of government services and programs that can be more effectively delivered by the private sector as long as privatization is implemented while maintaining acceptable standards of practice relating to a competitive process.

 

BCCA believes that regulations should be used only when there is a clear and demonstrable public policy objective where operational and economic impacts are outweighed by the objective.

 

Increase the efficiency of existing and future construction-related regulations through effective lobbying and government relations.

 

In the interest of maintaining a fair and equitable process for the submission of trade contractor bids to general contractors, the BCCA supports and encourages the use of BidCentral Online Bidding for Subcontractors (BOBS). BOBS is recommended for trades with an estimated value of $100,000 or greater on all institutional, commercial, industrial or multi-family residential projects valued at over $500,000. This includes being applicable for all civil projects that have a structural building component of over $500,000 (excluding Division 2 or Division 32 under the present-day Master Format) trades with the exception of landscaping and asphalt paving).

 

On public funded projects of $100,000 or more a contractor’s ability to bid is determined solely by the bidder’s capability to provide bonding. A clause requiring a bidder to submit details of their experience, financial status or community benefits requirements in the bid documents should not be included. BCCA believes that all qualified firms, without limiting the number of bidders, should be permitted to bid on publicly funded projects of $100,000 or more, and that on such projects bidders’ lists should not be restricted to an “invited” list. If the contract is awarded, it is awarded to the lowest compliant bidder.

 

BCCA endorses the bidding and contract award practices and procedures outlined in CCDC 23 - ‘A Guide to Calling Bids and Awarding Contracts’ and CCA 53 – Trade Contractors Guide and Checklist.

 

It is important to the industry that owners provide the ability to revise hardcopy tenders by fax or email under limited circumstances. The onus is on the contractor to have the revision to the designated location at the designated time thus providing the owners with the most competitive prices.

 

BCCA endorses the use of faxed (or email under limited circumstances) hardcopy tender revisions to the original hardcopy tender.  Procedure

The November 2004 version of A Guide to the Use of Cash Allowances represents the Association's policy on Cash Allowances.

 

Where there are deficiencies BCCA recommends the use of the BCCA’s Procedures Concerning Construction Contracts and Close Out of Projects. Funds held back for deficiencies should be based on the value of the outstanding work and should not exceed two times said value. BCCA is opposed to the retention of funds to cover unidentified deficiencies or warranty items.

 

Additionally, the BCCA Guideline to Construction Close-Out Procedures includes recommended practices following the principles and methods for successfully completing the takeover process efficiently for all parties.

 

The BCCA Recommended Policy & Procedure for Publicly Funded Design-Build Projects represents the Association’s policy on Design-Build.

 

Any information contained in a document deposited at a public procurement solicitation which is being used in evaluation of a submission is as per the CAMF Guidance for the Release of Information&/or Documents Related to Competitive Procurement Opportunities.  

 

For Electronic Procurement BCCA supports the requirements of CCA 90 Guidelines for Electronic Procurement, Part 11. Bid Results - All bid results should be electronically recorded, compiled, reported, and transmitted, or, in the alternative, be readily accessible to all interested bidders as soon as practical after the bid closing time. The process of electronic procurement should not be used to avoid a public opening process. Therefore, the instructions to bidders should specify the procedure for bidders to electronically obtain bid results or witness, in person, the opening of bids, as well as the anticipated time interval following bid closing after which bid results will be electronically transmitted or published. Construction File: Public Bid Openings for Online Bidding.

 

BCCA support the use of standard documents, developed and endorsed by the industry, as a means of promoting standard practices and procedures within the industry and vigorously opposes the implementation of supplementary General Conditions which have the effect of altering or subverting the intent or substance of these documents.

 

BCCA endorses the  concepts for determining costs in CCA16 Guidelines for Determining the Costs Associated with Performing Changes in the Work;. For markups for Overhead and Profit and for cost of work BCCA supports those as defined in BCDC 2: 

If the lowest compliant bid exceeds the Owner’s budgeted amount, and the Owner is unwilling or unable to award a contract at the bid price but is unwilling to abandon the project, the following guidelines for a course of action are recommended:

 

Re-bidding should be avoided whenever possible because of the additional time and costs incurred by all parties. Where a re-bid is unavoidable, the Bid Documents should be sufficiently modified to achieve a reduced bid price that will be acceptable to the Owner.

 

A standard ‘privilege clause’ in the bidding requirements would give the Owner the right to not accept any bid, thereby permitting the Owner to either abandon the project or reject all bids, and subsequently invite a re-bid on modified Bid Documents under a new bid call. However, since it is recommended that the Owner negotiate with the lowest compliant bidder in some circumstances, it is important that the bidding requirements include a clause giving the Owner, if necessary, the right to negotiate a reduced price with the lowest compliant bidder.

 

BCCA and its regional associations recognize the need for Pre-qualification in limited circumstances. Generally the ability of the Contractor to secure the necessary bonds is the sole criteria by which Contractors should be pre-qualified. Where it is deemed through the use of the Pre-Qualification Best Practice Checklist* that a pre-qualification is appropriate, the use of the CCDC 29 A Guide to Pre-qualification should be implemented to ensure a fair, open and transparent pre-qualification process, for General Contractors and Trade Contractors.

 

 

BCCA’s policy is neutral on the choice of the various procurement methods. Regardless of the procurement method all projects must be procured in an open, fair and transparent manner. BCCA supports the use of standard MMCD, BCDC, CCA and CCDC documents. Standards and Guidelines for publicly funded projects such as CCDC 23 (A Guide to Calling Bids and Awarding Contracts), and all BCCA Policies for Publicly Funded Construction Procurement should always be followed on all taxpayer funded construction projects. BCCA considers the term "Publicly Funded" to include funds from taxes at all levels of government as well as any other public assessments or user fees (such as airport improvement or security fees). These standards must apply regardless of the amount of public funds, the nature of the corporation or entity that is ultimately given the responsibility for the tendering and construction of these projects.

 

Bidding documents should be made available to bidders and for the least cost possible (including fully refundable deposits).

 

BCCA supports the use of the Canadian Design Build Institute Document 210 RFP Guideline, as the guideline for all RFPs.

 

The concept of a bidding auction is contrary to the principles of recommended construction procurement practices, and as such, is strongly opposed by BCCA and its constituent representatives. BCCA recognizes the value and benefits of secure Internet-based tendering and bidding, and endorses its use when intended to increase the efficiency of the construction tendering process. BCCA actively supports the development, in concert with owners, contractors and other construction industry representatives, of appropriate guidelines for the use of electronic bidding practices. BCCA therefore recommends that electronic bidding and tendering procedures comply with the provisions outlined in CCDC23 ‘A Guide to Calling Bids and Awarding Contracts.’

 

Opportunities can be posted on BidCentral (and any other industry medium ) for an open public bidding process;

And/or invitation shall be extended to all contractors on the registry* of pre-approved contractors that meet the criteria for the specified project.

*The solicitation of contractors for the establishment of a registry of pre-approved contracts must be in a manner that is appropriate to the value, complexity and profile of the business opportunity with the following requirements;

 

 

BCCA believes the construction industry contributes greatly to communities across Canada, both directly through its work in building essential infrastructure, through its voluntary contributions at the grassroots level and its support and training of the next generation of tradespersons.

 

BCCA is opposed to using the procurement of construction services to advance unrelated community benefits and other public policy objectives where they jeopardize the integrity of the competitive bid system.

 

If community benefits are being considered in the procurement of construction services, we refer to BCCA’s Policy 4.2 Bidder Qualification:
On public funded projects of $100,000 or more a contractor’s ability to bid is determined solely by the bidder’s capability to provide bonding. A clause requiring a bidder to submit details of their experience, financial status or community benefits requirements in the bid documents should not be included. BCCA believes that all qualified firms, without limiting the number of bidders, should be permitted to bid on publicly funded projects of $100,000 or more, and that on such projects bidders’ lists should not be restricted to an “invited” list. If the contract is awarded, it is awarded to the lowest compliant bidder.

 

Where there is a desire for some level of community benefit to be incorporated into an evaluation, this must be identified through a two stage procurement. First with a Request for Qualifications (RFQ) or similar stage of a procurement solicitation prior to the submission and evaluation of a bid/tender or Request for Proposals (RFP). Once the solicitation respondent has passed this consideration in the RFQ or similar, they are then eligible to submit a bid/tender/RFP response.

 

For the community benefits identified in an RFQ or similar:

Additional references:

• 1.5 Corporation Social Responsibility
• 4.2 Bidder Qualification
• 4.13 Pre-Qualification
• 5.4 Fair Wage