PAGE OCR 4 – April 2009 – The Ontario Construction Report
OGCA complains about ‘unprecedented’
implementation of onerous bid terms and clauses
onerous clauses we once thought were ex- is gained by requiring this information be-
MARK BUCKSHON
– The OCR Construction Report Publisher
tinct.” fore closing – the bottom line is the overall
“The ICI sector is not in a free fall,” price and the City really doesn’t need to
The Ontario General Contractors Asso- Clive Thurston says. “We are working and know the additional information.”
ciation (OGCA) is concerned that project the (stimulus) funding coming is aimed at In the OGCA bulletin, the association
owners, architects and government agencies our sector, and we are prepared to take it on. says: “Across the province, problems are
are imposing unreasonable and unfair bid- So why have we seen this upswing in oner- arising almost faster than we can respond.
ding information requirements and supple- ous bid terms and clauses?” The OGCA Board believes that a ‘stake’
mentary conditions – resulting in an OGCA vice-president Stephen Bauld must be driven into the ground and all
increasing number of non-compliant bids, says that while the problem is widespread, OGCA contractors who believe in a fair bid-
or contractors simply refusing to quote on he knows of specific problems on recent ding system must take a stand regardless of
the available projects. York tenders, as well as Cambridge, where whether or not non-members support us.
OGCA President Clive Thurston and the city is working on the second phase of a No more excuses about ‘special relation-
vice-president Steve Bauld say they aren’t new City Hall. ships’ or not wanting to offend an owner.
sure exactly why the problems and tensions Bauld sent the Ontario Construction Re- We are under attack and must stand up
are magnifying. They speculate that the port the city’s 27-page document, requiring now!”
new challenges may relate to overall eco- highly detailed quotes and price descrip-
nomic anxiety, though the non-residential tions for specific building components, The bulletin continues:
construction market in Ontario remains rel- along with a list of subcontractors for virtu- “Despite years of successful ‘consulta-
atively healthy and contractors are simply ally every aspect of the project. tion’ with many owners and not having to
submitting qualified (non-compliant) bids, The OGCA has always considered this go to the qualifying route, we now find our-
or are declining to submit bids when they type of request unreasonable for fixed bid selves with no choice but to speak up and
believe the conditions and requirements are projects. “We are bidding the overall job, fight back. This ‘confrontation’ is becoming
unreasonable. and giving our final price,” says Thurston. necessary due to the refusal of some to work
“As the economy has deteriorated, so too “What does it matter to the municipality with the industry in a time when we are the
has the quality of tenders being released by how much an individual component costs if major player for restoring the economy of
owners,” the OGCA says in recent industry the overall price is reasonable.” Ontario and Canada.
bulletin. “It appears a sense of panic has set The OGCA contends that onerous bid “Yet some feel this is an opportunity to
in, resulting in the inclusion of numerous conditions reduce the number of qualified throw roadblocks in the way of opportunity
bids, increase bidding disputes, and overall to, as some have been heard to say, ‘stick it’
raise the price of construction for the end- to those contractors.
Publisher’s
user. “We don’t understand why municipal- “The OGCA will stand up and fight for
ities are shutting the door to competition and you and this industry but we can only suc-
viewpoint
making bidding more difficult,” Thurston ceed with your support and that means look-
said. ing at the long term picture and not worry
By Mark Buckshon, Publisher,
Cambridge Purchasing Manager John about offending anyone.
Construction News and Report Group of Companies
Avery says the city isn’t changing the rules “Contractors have only themselves to
and has always conducted its purchasing blame if they agree to conditions being
Construction Marketing:
practices with requests for detailed bidding rolled out by these irresponsible buyers
information. when they find themselves in trouble down
Under or out of your control
“We have a transparent, fair and ac- the road.
countable bidding process,” he said. He “it is time to stand up and be counted. It
You can’t control the overall economy and you can work to capture the referral
said the City is not unreasonable. It issued only takes a few good companies to say
.
Nor can you control how individual and repeat business through systematic
an addendum granting additional time for nothing for this evil to triumph. Raise your
clients will respond to your marketing marketing and advertising now
bidders when they complained they needed voice and write letters to your MPP and
.
strategies. Remember, as well, that you don’t
extra time to complete the documentation local mayor or councillor.
You can control your attitude, your want to be in the position where you are
requested by the City for the project, which “When we call, be ready to stand with us
personal and business finances, and your relying on one (or just a few) potential
attracted bids ranging from approximately and say NO loudly and clearly to owners
overall business strategies and individual clients to say ‘yes’ to bring in your new
$2.6 to $3.2 million. will will not work with us as partners to
business decisions. business. If you are desperately hoping for
“We pre-qualified nine contractors for achieve a healthy industry and a recovering
Your marketing challenge is to ensure something to work out, it often doesn’t –
this (project),” Avery said. “We got seven economy.”
the qualities you can control have enough the potential client can almost sense your
bids, without complaints, (though) it was a Meanwhile, the OGCA announced that
power and effectiveness to overcome (or anxiety. Even if that isn’t the case, you
rush at the end.” it had met with the Ontario Association of
at least manage) the things you can’t con- simply don’t have that much power to en-
Avery said he knew two bidders were Architects (OAA) and the two organizations
trol. sure everyone behaves just the way you
unhappy with the advance information re- have agreed to set up a Best Practices Com-
Say, for example, that in good times want, no matter how much you try
quests and complained to the OGCA. But mittee and a Legal Task Force.
. You
you “relied” on referrals. You never had need to have several possible clients wish-
he said the seven bids received were com- “The Best Practices Committee will ad-
to go looking for new business, “I never ing to do with you at the same time to be
pliant “and they were under budget.” dress issues raised by both sides concerning
had to market or advertise”, because you comfortable, so you need to use your tal-
Thurston and Bauld disagree, saying the use of RFIs, shop drawings, schedules
always had an abundance of clients, in ents under your control to ensure you
they understand that some of the bidders, to and drawing co-ordination,” the OGCA said
fact a backlog. have enough future business in the
complete their bids in time, simply marked in an industry bulletin. “The Legal Task
Now things have slowed down for rea- pipeline.
n/a (not applicable) or otherwise refused to Force will address issues concerning indem-
sons over which you have no control. You Take charge of the things you can con-
fill in some of the detailed information re- nification.”
can survive in business by taking charge trol, and the things you can’t control
quired on the multi-page Cambridge bid- “Work will proceed quickly and a list of
of the things you can control. You can cut won’t defeat you.
ding document. “We know the bids weren’t agreed-to items will be released very
costs and staff, live on less, and manage. Mark Buckshon publishes a daily blog
compliant.” shortly,” the OGCA bulletin said. “The
Or you can understand that if you were at http://www.constructionmar
The OGCA says it has no objection to a OGCA wishes to thank the OAA for their
-
doing things well enough in good times ketingideas.blogspot.com. He can also be
“two envelope” system where sub-trade de- co-operation and their efforts to resolve
that you had a backlog of work, you prob- reached by phone at 888-432-3555 ext
tails are separated from the price quotes, or these issues in the best interests of the entire
ably have an overall excellent reputation, 224 or by email at buckshon@cnrgp.com.
additional detailed information is provided industry.”
post-closing by the finalists. “But nothing
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