DCN ARCHIVES
Weekly Poll for March 27, 2009
The OGCA reports an unexpected surge in difficult contracts and bidding methods.
Have you found contract terms becoming more onerous lately?
| Yes |
 87% |
| No |
 13% |
Comments
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These projects have been selected from 288 projects with a total value of $2,181,603,356 that Reed Construction Data Building Reports reported on Friday.
STADIUM, BERMS, PARKING GARAGE, SITE WORKS
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| ALEX’S ECONOMICS BLOG |
Reed Construction Data Canada’s Chief Economist Alex Carrick discusses current developments in the North American economic environment with emphasis on the construction industry.
- Home starts and job levels diverge in Canada and the U.S. (February 8, 2012)
- Canada’s labour market flat in January but U.S. on a roll (February 3, 2012)
- Canada’s leading indicator series continued to charge ahead in December (January 23, 2012)
- More
5. April 1, 2009 — Some owners allow their purchasing / finance / legal departments too much say in the tendering process at the expense of technical clarity. The result is either higher bid prices or a more antagonistic owner/contractor relationship making it more costly in the long run. Respond to this comment
John Mohle, Moorefield, Ont.
4. April 1, 2009 — There was a time when million dollar contracts were done on a handshake. Work was done for grateful owners, who understood what a capital expense was and that his contractor should make money, weasel clauses aside. Respond to this comment
David Vida, Chief Estimator, Stucor Construction Ltd., Jordan Station, Ont.
3. March 31, 2009 — Bureaucrats and a non-appreciation of involved risk. A blatant lack of experience would explain the existence of these clauses being inserted. Respond to this comment
Phil Meunier, Senior Estimator, Aecon
2. March 31, 2009 — What the owners fail to understand is that these onerous clauses and qualified bids are driving their construction cost higher. One of the reasons for this, in my opinion, is the lack of construction contracts specialists in the public sector purchasing departments. I welcome the efforts of OGCA and the insurance providers in issuing "Tender Alerts" from time to time and improving the industry practices. Respond to this comment
Chris Krishnakumar, Chief Estimator, URBACON
1. March 31, 2009 — Clients are insisting on higher value-added services but they are unwilling to pay extra for these services. ISO certifications, QUALIFIED suppliers and quality products all cost money. They will try to save a dollar by using the lower prices. However, in the long run they end up paying more before projects are completed to specifications. Those that do deserve exactly what they get. Companies that bid to specification are often at a disadvantage. To meet specification minimums is easy because many go for the extras after awarded the contract. Respond to this comment
Paul Craig, Canadian General Manager, Contro Valve Inc., Fredericton, N.B.