Summary
Following a denunciation concerning the awarding of a foundation formwork contract for the new Bellechasse transit centre by Société de transport de Montréal (STM), the Office of Inspector General’s investigating officers met with stakeholders and reviewed the documents in the case. The investigation consisted of two parts. The first part involved the awarding of a construction management contract and the second part the cancellation of a call for tenders involving foundation formwork.
Pomerleau Inc. was awarded the construction management contract that consisted in assisting STM with the design of the construction package plans and specifications. The builder-manager was also involved in the coordination of the contracts awarded to companies following the publication of call for tenders by STM.
The Office of Inspector General’s investigation revealed breaches of the regulatory framework applicable to public transit companies. STM had predetermined an amount of $4M for an item on the price schedule for work covered by the construction management call for tenders. This predetermined amount did not allow interested firms to bid on a fixed-price or unit-price basis.
The foundation formwork call for tenders was cancelled due to the substantial difference between the lowest bidder’s price and STM’s estimate. Prior to the cancellation of the foundation formwork call for tenders, STM authorized the builder-manager to proceed with some of the work involved by the call for tenders and to negotiate with a subcontractor specialized in the performance of another part of the work. The fact of delaying the cancellation of the call for tenders allowed STM and the builder-manager to negotiate a price for the work to be performed with the specialized firm.
These breaches that were identified during the investigation were serious enough to terminate STM’s contract. However, since the work covered by the investigation was finished and the $4M amount spent at the time the report was submitted, the Inspector General made recommendations to municipal authorities, as her mandate permits, to avoid such breaches by STM.
Pomerleau Inc. was awarded the construction management contract that consisted in assisting STM with the design of the construction package plans and specifications. The builder-manager was also involved in the coordination of the contracts awarded to companies following the publication of call for tenders by STM.
The Office of Inspector General’s investigation revealed breaches of the regulatory framework applicable to public transit companies. STM had predetermined an amount of $4M for an item on the price schedule for work covered by the construction management call for tenders. This predetermined amount did not allow interested firms to bid on a fixed-price or unit-price basis.
The foundation formwork call for tenders was cancelled due to the substantial difference between the lowest bidder’s price and STM’s estimate. Prior to the cancellation of the foundation formwork call for tenders, STM authorized the builder-manager to proceed with some of the work involved by the call for tenders and to negotiate with a subcontractor specialized in the performance of another part of the work. The fact of delaying the cancellation of the call for tenders allowed STM and the builder-manager to negotiate a price for the work to be performed with the specialized firm.
These breaches that were identified during the investigation were serious enough to terminate STM’s contract. However, since the work covered by the investigation was finished and the $4M amount spent at the time the report was submitted, the Inspector General made recommendations to municipal authorities, as her mandate permits, to avoid such breaches by STM.
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Recommandations to Société de transport de Montréal regarding contract management of the Bellechasse Transit Centre construction project