What constitutes a ‘best bid’ in B.C.?

Following a speech by B.C. Premier John Horgan, the British Columbia Construction Association (BCCA) said “best bid,” which Horgan touted in his talk, have become the two most important words in construction in the last 12 months.

“Low bids might be good for BC Liberals, but best bids are what we are going to do,” said Horgan in late 2017 to a BC Federation of Labour (BCFL) conference in Victoria.

Just what the government means by “best bid” is unclear, and it hasn’t been in any hurry to explain itself. It is likely, however, that it doesn’t deviate radically from what the BCFL, a major supporter of the NDP government, thinks it means.

“For the last 10 or 15 years we have spoken to B.C. governments about big public sector projects and the need to maximize the benefits to the communities in which they’re located,” said BCFL president Irene Lanzinger.

Perennials on the BCFL wish-list for public project procurement are buying local goods and services, local hiring, jobs for women and First Nations, and apprenticeship spots for young people.

“We don’t favour low bid because it doesn’t support our goals of maximizing community benefits,” said Lanzinger.

The BCFL has spoken to the provincial government “in general terms” on the subject of best bid and how to use public infrastructure spending to benefit the province in ways the federation approves of.

“But we haven’t had any detailed discussions with the government yet,” Lanzinger said.

It will come as no surprise that the BCCA has a different opinion of what constitutes a best bid.

Chris Atchison, president of the association, said how “best bid” becomes defined is critical for the B.C. economy.

“It will determine which contractors are successful in making their bids for government projects totalling in the billions of dollars,” he said.

“When subjective criteria (such as the ones suggested by Premier Horgan) enter the award process, we risk compromising the integrity of the final product and add risk for taxpayers.”

Atchison said a “best bid” should be defined as “an offer to do work at a stated price of the most excellent, effective and desirable quality.

“In a construction bid, desirable qualities are defined by a set of non-subjective criteria which the owner uses to identify the proponent with the optimal combination of relevant experience, skills, competencies and price,” Atchison said. “Ideally, to ensure a fair, open and transparent process, this is a two-stage process, with the second stage focusing on price.”

The industry supports initiatives that encourage equity-seeking groups to take part in construction, he said.

We hope our definition will be embraced as a starting point.

— Chris Atchison

British Columbia Construction Association

“However, when construction procurement requirements in the public sector indicate preference for employment based on subjective criteria, that gets in the way of the fair, open and transparent processes that are the responsibility of government to all citizens,” Atchison said.

The most productive and positive way for a public sector owner to encourage employment from equity-seeking groups is to continue to support industry-led employment and business development programs, he said.

“These programs reach into B.C.’s communities to provide the training and support that help under-represented British Columbians find, qualify for, and succeed in construction careers with integrity of process and outcome,” Atchison said.

Like the BCFL, the BCCA is waiting to find out just what the government means by its as yet undefined “best bid” criteria.

“The government has been making broad statements so far, and we have no details yet,” Atchison said. “We hope our definition will be embraced as a starting point.”

The BCCA was encouraged by the contents of the mid-February 2018 BC Speech from the Throne.

In an announcement, BCCA said the speech “means good things ahead for all of BC’s tradespeople.”

According to the Throne Speech, the government will move to a new contract award system that will give small, B.C.-based businesses a fair shot at government contracts.

“By definition, these small employers represent the open-shop majority of the workforce,” said Atchison.

Despite the concerns that government will introduce subjective criteria to the procurement process that favour some employers over others, the math doesn’t add up with that approach, he said.

“Already we’re experiencing skills shortages and can’t afford to leave out any part of the eligible workforce,” Atchison said.

“The Throne Speech indicated that a fair, open and transparent process will make project opportunities equally available to everyone.”