Province adopts new rating model for contractors
EDMONTON A new rating system for government contractors and consultants will allow Alberta Infrastructure to reward high-performing vendors and suspend problematic ones from bidding on government construction projects.
The new “carrot-and-stick” model was requested by the construction and design industry, representatives said Monday, and should improve the likelihood of schools, hospitals and other public buildings being constructed on time and on budget.
“The whole purpose of this is to reward good contractors and good consultants and — I wouldn’t say penalize — but there should be consequences for poor performance,” said Paul Verhesen, past chairman of the Alberta Construction Association and president and CEO of Clark Builders.
Starting Jan. 6, 2020, any contractor or consultant bidding on an Alberta Infrastructure project worth more than $100,000 will be required to take part in a “Vendor Performance Management” (VPM) program.
Infrastructure Minister Prasad Panda said Monday the program was developed in consultation with the construction industry, engineers and architects.
It will assess vendors based on the quality of projects, how well they’re managed, if they stick to the proposed schedule, the cost and their safety record.
The government will give companies feedback at regular intervals throughout the project, which should allow them to stave off potential problems earlier, he said.
The program should help citizens get the best value for their money when public buildings are constructed, he said.
Alberta’s Transportation Ministry has a similar program for highway and bridge construction, as do some cities and some federal government departments, he said.
A unique feature of infrastructure’s VPM program is the ability of contractors and construction companies to give feedback to government, too.
If the government identifies shortcomings while the project progresses, vendors have chances to improve, Panda said.
The program guide says if a company’s score falls below a certain threshold, the government may suspend them from bidding on other projects for 18 months to three years.
However, if they perform well, vendors will be given more favourable consideration when bidding on future projects.
Companies can appeal their scores if they feel they’re unfair.
Right now, the infrastructure ministry can only evaluate each bid based on the submission and not the company or consultant’s record.
Derek Ciezki, a partner with SMP Engineering and past president of the Consulting Engineers of Alberta, said the process should help ensure government is hiring the right people for the job.
“Improving vendor accountability drives qualifications, which can help end the race to the bottom that can lead to substandard performance,” he said.
Governments will sometimes choose winning bidders based mainly on the lowest price.