Bidding process focuses on performance criteria
It’s been a rough few weeks for major Edmonton construction projects.
The long-delayed NAIT LRT opening could be pushed back again, girders buckled during construction of the 102nd Avenue bridge and the new Walterdale Bridge won’t be finished until next year because steel arches were delayed. Here are some of the details about what happens now. Q: How much stuff does the city buy from contractors? A: For city officials, it really is a case of love me tender. They issued more than 700 of them last year for more than $1 billion worth of goods, services and construction. Q: What’s the process for hiring construction companies? A: On straightforward jobs such as road construction, where most firms are well known, the city often hires the lowest bidder. Although serious problems are rare, the city is protected by a bond companies provide that pays to complete a contract if they can’t do it. On major projects, bidders are also pre-qualified to ensure they have the skills and experience. Q: For example? A: The city sent out an 11-page pre-qualification document in November 2012 to companies interested in building the Walterdale Bridge. They were marked out of a total 100 in three categories — general, performance and qualifications. General (corporate, financial and health and safety history) was worth 15 marks. Performance (bridge and road building experience, references, construction methodology and schedule, site sensitivity) was worth 65 marks. Qualifications (project management, name and background of main team members) was worth 20. To qualify, they needed to score at least 70. Q: What if key team members leave? A: This doesn’t often happen, but if it does the city must approve the new player, says Dan Lajeunesse, manager of the corporate procurement and supply services branch. Q: How many companies were qualified for the Walterdale project? A: Six firms, often working as consortiums, made the cut, although the city won’t release their scores: Acciona/ Pacer, Ferrovial Agroman Canada Inc., Flatiron Constructors Canada Ltd., Graham Infrastructure LP, Kiewit Management Co., PCL Construction Management Inc. They had to choose one of seven pre-qualified steel fabricators. Q: Who won? A: The final contract was based solely on price. Four of the six groups bid. The lowest price ($125,768,527.02) came from the joint venture between Spain’s Acciona S.A. and Calgary-based Pacer Corp. They’re working with South Korean steel fabricator Daewoo International Corp. The total cost of the bridge and approach roads is $157 million. Q: Has the city tendering process changed? A: Over the past five years, the city has focused more closely on how well potential bidders did on previous city jobs, Lajeunesse says. This is part of a general move in the field, he says. The Walterdale prequalification documents have a clause allowing the city to reject submissions from firms that performed poorly in the past.