Lack of Competition in Construction Tendering Hurts Taxpayers

PCA and CLAC call on the Federal Government to make open tendering a condition for infrastructure funding contributions

OTTAWA, May 9, 2013 /CNW/ - The Progressive Contractors Association of Canada (PCA) and the Christian Labour Association of Canada (CLAC) were in Ottawa today to lend their voices to the debate on closed tendering.

Closed tendering is an issue all across Canada.  In Ontario, municipalities are hit the hardest because of loopholes in the current provincial labour legislation.  In Manitoba and BC, closed tendering has been created because of decisions to enter into monopoly agreements with certain suppliers.

"Closed tendering creates an unlevel playing field.  Large, publically funded infrastructure projects should be open to all Canadian taxpayers regardless of union affiliation," said Sean Reid of PCA.  "We are calling on the federal government to respect taxpayers' dollars by making open tendering a condition of their financial contribution to future infrastructure projects"

Appearing before the Transport Committee, the PCA and CLAC said they were pleased to offer the government and opposition parties their perspective on how increased competition can make taxpayers' dollars stretch farther.  Both PCA and CLAC are working hard to raise awareness of the issue at all levels of government so that corrective action is taken.

"Shutting out competitors for large, publically funded infrastructure projects leads to increased costs.  A City of Hamilton report recently concluded that these costs can escalate by as much as 40%," said Brendan Kooy, Regional Director - Eastern Ontario for CLAC.  "Our Government needs to ensure that our infrastructure dollars are spent in a way that maximizes the value and number of projects that can be completed and allows everyone to compete for the work."

SOURCE: Progressive Contractors Association of Canada

Julie Garner, Garner Solutions 519-888-6921 or [email protected]