Members cite breakdown in trust at heart of current procurement challenges
CCA President Mary Van Buren and Senior Vice President Rod Gilbert, supported by the National Advisory Council Chairs and CCA Chair Brendan Nobes, have been on a fact-finding mission this summer to learn first-hand from members about their challenges with current procurement practices. Dubbed the Standard Practices Tour, CCA visited Vancouver, Edmonton, Winnipeg, St. John’s and Montreal in June.
A familiar theme heard from many members across the country is that the current system is broken – and trust is eroding between the owner and contractor. Examples cited included the RFP\tendering process and its restrictive and inefficient requirements; contractors are forced to manage unknown project costs and delays if they want to bid; owners often favour lowest bidder foregoing value and fair competition; and much of the risk is shouldered by contractors.
Some participants explained that government owners often release projects on a political, short-term, or somewhat reactionary basis. This approach overlooks the realities of seasonality, complexity and costs while still expecting projects to be delivered on time and on budget.
Members seized on the issue of early contactor involvement as a way to produce a more informed project plan, resulting in better pricing for risk and potentially identifying more efficient and effective ways of delivering projects.
The issues raised at the meetings also touched on the lack of skilled workers at the local and provincial level available to develop, design and deliver on infrastructure project proposals. Participants expressed that there is a lack of appreciation from owners regarding the challenges in project delivery and cost management due to the workforce shortage, supply chain disruptions and escalating costs for materials.
The way forward – more owner education is needed
Many participants noted that public owners need to better understand project cycles and management. Sharing risk, prioritizing best value over lower cost, engaging contractors early in the process, and initiating measures that build the trained workforce needed before imposing social procurement goals were all identified as areas CCA can help lead change through education.
Local construction associations can advance these messages with local and provincial owners to further CCA’s efforts to update procurement practices.
Participants also noted the importance of leveraging the value of Canadian Construction Documents Committee (CCDC) documents as fair, consensus-based industry contracts and guides.
CCA is discussing needed changes to modernize federal procurement with Public Services and Procurement Canada and will continue to advocate for long-term infrastructure planning that is informed by an independent advisory council.