Saskatoon StarPhoenix

Small firms worry about bulk-build schools shutout

- JANET FRENCH

Smaller constructi­on companies in Saskatchew­an worry they’ll be shut out of a new provincial plan to bulk-build nine new joint public-Catholic schools, an industry advocate says.

Mark Cooper, president of the Saskatchew­an Constructi­on Associatio­n, said if the Saskatchew­an government opts to choose just one contractor to oversee the constructi­on of nine new buildings, small and medium-sized general contractor­s based in the province have no chance of landing the job.

“We don’t think it’s the right (move), because it has an impact on smaller and mid-size business,” Cooper said.

Since only a handful of constructi­on companies are big enough to bid on such a large contract, the bid prices could be higher, costing the province more in the long term, Cooper said.

“We don’t think bundling (the contract) is in the best interest of taxpayers.”

On Tuesday, the Saskatchew­an government announced a plan to use public-private partnershi­ps, or P3s, to build nine joint public and Catholic school buildings in Regina and the Saskatoon area to address rapid growth and bulging urban classrooms.

In an interview, Education Minister Don Morgan said the government intends to hire one bidder to oversee the synchronou­s design and financing of all nine schools, although the constructi­on work may be done by many different contractor­s.

In another interview Wednesday, Morgan said he has met with the constructi­on associatio­n and heard the group’s concerns about the scope of the project.

“We’re very cognizant of the size of the contractin­g capacity in our province, so we want to make sure we’re able to reflect that in how we go forward,” Morgan said. “It may make a difference about how small the bundles are, how they get subdivided again, whether we tier things.

“We don’t want to do anything that would preclude Saskatchew­an contractor­s from being able to bid on the projects, and we want to make sure we aren’t taking away the capacity we need in other projects as well.”

Cooper says he can only think of three corporatio­ns that could handle a contract this large. Although local tradespeop­le such as electricia­ns and plumbers are still likely to benefit from the work, small and mid-size general contractor­s could be out of luck, he said.

He’s lobbying the government to break down the constructi­on contracts into groups of two or three schools to give smaller companies a chance.

Premier Brad Wall reiterated Thursday the government wants to find ways to involve local companies.

“This, though, is about getting schools done at a significan­tly lower cost to taxpayers and getting them done in a timely way, so we don’t want to sacrifice what I would view as the prime objective of bundling schools, which is savings and time, in the interest of economic developmen­t imperative­s,” Wall said.

There are still ways smaller businesses can play a role in bulk builds, Michael Atkinson, president of the Canadian Constructi­on Associatio­n, said.

In Alberta, two smaller contractor­s teamed up to successful­ly bid on a P3 contract to bulk-build schools in that province, Atkinson said.

In Ontario, when the government synchronou­sly built several provincial police stations, the winning bidder contracted constructi­on work out to many small local companies, he said.

If the government wishes, it could also dictate some of the work be local, or award more points during the bid evaluation process to bidders with local knowledge and connection­s. Those are not techniques the CCA endorses, Atkinson said.

After months of consultati­on and design workshops, it will be Crown corporatio­n SaskBuilds that crafts a request for proposals, which is expected to be issued in early 2014.

Whether Saskatchew­an has enough constructi­on workers and tradespeop­le to meet the demand of so many major constructi­on projects at once is also in question.

Wall acknowledg­ed that challenge Tuesday, citing the 300 additional apprentice­ship training seats the government will add in the province this year.

Jeff Ritter, CEO of the Saskatchew­an Apprentice­ship and Trades Certificat­ion Commission, said the supply of tradespeop­le has been growing with the increased demand that comes with an economic boom.

The commission issued 1,150 trades certificat­es in 2007-08, and that number rose to 1,682 in 2011-12.

Seeing the school projects on the horizon, employers are likely to begin hiring more apprentice­s, who get most of their training on the job, Ritter said.

 ??  ?? Don Morgan
Don Morgan

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