Northern BC Regional Associations Southern Interior Vancouver Island Vancouver Regional
BCCA Members General Contractors (30%) Specialty Contractors Heavy Constructors and Road Builders Industrial Contractors Manufacturers and Suppliers
Services Planroom Services • Meets the requirements of the Agreement on Internal Trade (will likely meet requirements of TILMA). • Provides project document availability to members on-line. • Can provide document distribution for all planholders. • Planholder lists for bidders and suppliers. Document Sales • Hardcopy and electronic versions of all CCDC and CCA standard documents
Long Term Projects Most Current Major Projects List 172 BILLION Plus Olympic related construction Other long term capital projects Highway infrastructure projects, 3.5 billion Gateway Project
We are all Dealing with 6 Crosscut Drivers …CapitalTechnologyResources EnvironmentHuman Resources Infrastructure Impact the way we live our lives and the way we do business…
Crosscut Drivers … • APMeltdown in US finance system pummels stock marketMonday September 15, 11:24 pm ET By Patrick Rizzo and Joe Bel Bruno, AP Business Writers Banking turmoil sends a shudder through Wall Street; Dow suffers biggest point drop since 2001 • NEW YORK (AP) -- The upheaval in the American financial system sent shock waves
Impact of Crosscut Drivers: Signals in the Industry • Current skilled labour shortages. • Infrastructure demands • Increasing demand by owners for documentation, safety systems, end product specifications QUALITY. • Owner stipulated tendering processes. • Evolving relationships with the the buyers and sellers of construction services • Evolving tensions
Health Care Education Infrastructure Arts / Tourism / Culture Social Services Municipal Provincial Federal First Nations BC Hydro Terason Gas Telus, Bell Rodgers Suppliers Distributors Small Business Oil & Gas Forestry Mining Biotechnology Telecommunications IT Research Design Legal Insurance Financial Land Titles Suppliers Distributors Small Business Intensive Agriculture Processing Transportation Impact on Other Sectors GUIDING PRINCIPLE: Nothing happens until something gets built: AND A lot happens when things are being built. Government Construction Industry The Construction Industry is central all elements of BC’s Economy. Utilities Resources Support Industries Manufacturing Retail Technology Food
Standards & Practices Project Manual www.bcprojectsmanual.com Standard Documents http://www.bccassn.com/standards.html Canadian Construction Documents Committee: http://www.ccdc.org/docs/list.html Canadian Construction Association: http://www.cca-acc.com/documents/ccalist.html Bid Depository http://www.bccassn.com/bids.html E-Bidding (under development – available in 2009)
Market Place Conditions • More interest in public sector projects resulting in increased competition. • Procurement methods are more under the microscope than in past years. • Constant pressure to address full access to public funded projects • Adherence to CAMF Principles at all phases of the procurement process
Government – Industry Discussions Participants • Ministry of Finance and Ministry of Education • BCCA and ICBA representing contractors • AIBC and CEBC representing design professionals Discussions • Implementation of CAMF- Audits – Work Plan • Industry’s Major Concerns: • Pre-qualification of Contractors • Use of Privilege Clauses • Supplementary Contract Conditions • Fair, Open and Transparent Bidding
Pre-qualification of Contractors Pre-qualification of contractors should only be used when there is a need for special expertise. Guideline available at www.pccbc.com/docs • Fairness, Openness and Transparency • Very subjective • Transparency difficult • Allocation & Management of Risk • Are those making the evaluation familiar with the industry enough to make fair evaluations • Competition • Limits the competition • Value for Money and Protecting Public Interest • Limited competition will not provide the best pricing
Use of Privilege Clauses Privilege clauses allow the owner to waive non-compliance and allow other considerations other than price in evaluation of bids. • Fair, Openness and Transparency • Evaluationcan be subjective • Transparency can be questioned as the potential exists to no treat all bidders equal • Allocation & Management of Risk • Onerous clauses can weight heavily in the favour of the owner. • Competition • Onerous privilege clauses may make bidders wary and limit the competition • Value for Money and Protecting Public Interest • Limited competition will not provide the best pricing • Allowing bidders to not all be treated equally is not in the best public interest
Use of Privilege Clauses The Good, the Bad and the Ugly • The Good • Allow the owners some latitude but with accountability • BCDC 2, 2008 ‘Stipulated Sum Documents’, Clause 9 an industry standard • The Bad and the Ugly • Tenders which contain qualifying conditions or otherwise fail to conform to these Instructions to Bidders may, at the sole discretion of the Owner, be disqualified or rejected. The Owner may, however, in its sole discretion, elect to retain for consideration and award Tenders which are non-confirming because they do not contain the content or form required by these Instructions to Bidders or because they have not complied with the process for submission set out herein.
Supplementary Contract Conditions Onerous Supplementary Conditions to CCDC 2 and other industry standard documents • Fair, Openness and Transparency • Is not affected by this consideration • Allocation & Management of Risk • Onerous risks that an owner may place on a contractor may sometimes be best borne by the party that can best manage the risk; the owner • Competition • Contractors can accept risk varying on their size and business practices; onerous clauses may limit the competition • Value for Money and Protecting Public Interest • Limited competition will not provide the best pricing • Costs for risk that are added to a bid to compensate are not in the best public interest
Supplementary Contract Conditions The Good, the Bad and the Ugly • The Good • BCDC 2, 2008 ‘Stipulated Sum Documents’, Part 1.3 Supplementary Conditions; an industry standard • The Bad and the Ugly • Anything other than BCSC 2, 2008 and Insurance Supplementary Conditions or BC Government Indemnification requirements. • How does the contracting community respond to onerous conditions when every organization has their own conditions that amend the standard? Not every contractor has the resources to retain legal counsel. Such a process is one sided and like no other faced by other industry sectors in BC.
Fair, Open and Transparent Bidding The Good • The Good • All Projects are publicly advertised • Stipulated sum bidding is awarded to the lowest compliant bidder • Construction Management or Design Build services are awarded in a open manner with transparent evaluation criteria with appropriate unbiased oversight • Processes are fair to bidders in all levels of the bidding regime; i.e. Trade contractors bidding in the CM process are to be publicly advertised and bid protocol should be fair, open and transparent
Fair, Open and Transparent Bidding The Bad and the Ugly • The Bad and the Ugly • Recent audits performed by KMPG have revealed projects: • That were single sourced • Not publicly advertised • With evaluation criteria that was irrelevant and showed favour to one participant • Revealed possible conflicts of interest with the owner’s staff/consultants and bidders • Complaints from the industry about single sourcing of construction services • Contractors performing work on public funded projects on a cost plus bases
Procurement Open Fair Transparent process Key Principles that need to be in place as the accelerated Infrastructure projects are taken to market.
Health Care Education Infrastructure Arts / Tourism / Culture Social Services Municipal Provincial Federal First Nations BC Hydro Terason Gas Telus, Bell Rodgers Suppliers Distributors Small Business Oil & Gas Forestry Mining Biotechnology Telecommunications IT Research Design Legal Insurance Financial Land Titles Suppliers Distributors Small Business Intensive Agriculture Processing Transportation Impact on Other Sectors Government Construction Industry GUIDING PRINCIPLE: Nothing happens until something gets built: AND A lot happens when things are being built. Utilities Resources Support Industries Manufacturing Retail Technology Food
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