PAGE OCR 4 – October 2009 – The Ontario Construction Report
ORC Provincial Government building projects
Competition overwhelming as dozens vie for public work
MARK BUCKSHON – The OCR Construction Report
plained they did not have fair Thurston acknowledges is far over 70 people when con- the ORC’s Strategic Opera-
and equitable access to gov- beyond what is reasonable to sultants and subs are in- tions Committee meeting in-
An initiative to encourage cluded on the Ontario Realty
ernment bidding opportuni- ensure a fair price. cluded. From a practical cludding representatiaves
openness, transparency and Corporation (ORC) “Vendor
ties. “The ideal number (of standpoint, accommodating from the Consulting Engi-
fairness for Ontario govern- of Record” pre-qualification
Under new rules intro- competitors) is six or seven,” that many people with eleva- neers of Ontario (CEO), As-
ment building projects has list. He said many OGCA
duced earlier this year, gen- Thurston said. This isn’t a tor and space limitations, sociation of Registered
caused an undesirable com- members are declinign to bid
eral contractors, architects problem with larger projects makes the site meetings an Interior Designers (ARIDO),
plication – truly excessive because of the “dozens of
and interior designers can where bids might reach $100 onerous procedure.” the Ontario Association of
competition – says a general very small, unknown, bid-
apply for prequalification as million or more, but can be a “The most frustrating as- Architects (OAA), and the
contractor in a letter to On- ders on each invite.”
a “Vendor of Record” challenge for smaller work, pect is obviously competing OGCA. The next SOC
tario General Contractors’ Previously, contractor se-
through Biiddingo.com or including building retrofits against dozens of other firms, meeting is later this month.
Association (OGCA) Presi- lection for smaller and
MERX. They then are noti- worth $100,000, where many of which, frankly, Solutions might involve a
dent Clive Thurston. medium-sized government
fied about all projects for dozens of contractors might would not qualify for any rotational roster, where a se-
Marc Carter at Cloke- building projects had been
which they qualify.. qualify. other roster that our company lected number of bidders are
Kirby Construction Ltd. in handled by a small group of
OGCA President Clive Indeed, it seems many of for instance has the pleasure invited for each project, de-
Toronto says dozens of com- project management compa-
Thurston says the ORC is the more than 200 contrac- to be on,” Carter says. pending on location and
petitors are clogging site nies such as SNC Lavalin
playing by the rules the in- tors on the ORC’s prequalifi- “Many of these firms are other qualifications. As well,
meetings because they are in- Profac. Contractors com-
dustry would like to see all cation list qualify – and are tiny, many are newly incor- the ORC’s experience rating
government departments and competing – for work on porated and given the RFP system will kick in – con-
public agencies follow “This these public projects. documentation and require- tractors are evaluated not
organization has worked Cloke-Kirby’s Marc ments, I personally cannot only on their contract price,
hard to do it right,” he said. Carter sent Ontario Con- understand how they could but the quality of their work,
“They are trying to be open, struction Report an example have qualified. The practical so a contractor who bids low
fair, and transparent and – the award notice detail on result is that most of the once and performs poorly
work with the contracting in- biddingo.com for the fit-up more reputable firms, after won’t be invited back.
dustry.” of newly leased office space, attending the site visit, de- “There are a number of
“The OGCA public pol- awarded to M/2 Group Inc. cline to attend.” things that can be consid-
icy is that anyone who meets in Stoney, Creek, Ont. for Carter writes “the asser- ered,” Thurston said.
the requirements should be $276.677.00. (For a reason tion by both the ORC and Thurston said the fact re-
allowed to bid.” not disclosed on the award CBRE (CB Richard Ellis) mains that for smaller proj-
The “Vendor of Record” notice detail, M/2 Group re- that this process is per ects, a large number of
prequalification list posted ceived the job over low bid- OGCA protocol and that the businesses can handle the
on the ORC website includes der Soleness Inc. of OGCA guidelines are gov- work, and many are willing
216 general contractors. The Mississagua, which bid the erning this process. to bid on extremely low
website also reports that the work at $272.000, the lowest “I do not know how many overheads and for compensa-
current opportunity to apply of 20 competitors.) of the contractors on the tion which the larger firms
to be qualified as a VOR ex- “This shows bidders who (VOR list) are OGCA mem- would consider unreasonable
pires on September 29 (just requested docs,” Carter says. bers, but I do know that (but still will perform the
as this issue of Ontario Con- “Zero indicates someone many of the names I recog- work to satisfactory levels.)
struction Report goes to who declined to bid, includ- nize, are not. I would sug- “We are dealing with pre-
press.) ing my company for the sim- gest that of the dozens of qualified bidders who meet
General contractors such ple reason there was far too firms that choose to decline the ORC’s standards,”
as Cloke-Kirby, who had many bidders to bother.” to bid simply because of the Thurston said. “It is difficult
previously qualified with the Carter says the VOR list 50 or more bidders, there is a to say that you are not al-
management companies and is cumbersome “as the ORC higher percentage of OGCA lowed to bid.”
been invited prviately with maintains that any qualified members than there is on the “ORC has combination of
fewer competitors to bid on vendor in a region must be VOR.” large and mid-size projects,
government projects. now invited. Thurston says the issue and a large number of
are encountering truly mas- “The result is tender vis- of managing the size of bid smaller projects (things like)
sive competition, which its that must accommodate lists will likely come up at office fit ups and mainte-
nance upgrades, and they
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