SECTION 1

WHAT IS THE BID DEPOSITORY?

The British Columbia Construction Association’s Bid Depository is a system for the reception of sealed bids from trade contractors interested in work on major building/construction projects. The system is widely used in the public sector for such projects as educational facilities, hospitals and other buildings.

The Bid Depository enables those receiving bids to get firm quotations in writing, and in adequate time, to compile their tenders completely and accurately. It provides users with the widest possible selection of bids from qualified, bonded contractors. The system promotes fairness and quality in the bidding process.

The current Bid Depository Rules of Procedure were implemented in July of 1994. Feedback from trade contractors, general contractors, architects and owners has resulted in positive amendments to these Rules, attesting to the flexibility in meeting the needs of the industry.

IS THE BID DEPOSITORY MANDATORY?

Many provincial government agencies have a policy that requires the use of Bid Depository. The generally accepted requirement is to specify its use for trades with an estimated value of $50,000 or greater on projects valued at over $200,000. In general, however, the process is not mandatory.

WHAT IS THE VALUE-FOR MONEY?

Cost Accountability

• Because the system promotes fairness and equality in the bidding process, trade contractors are more willing to submit their most competitive bid.
• General contractors are more comfortable in submitting their most competitive tender as they receive written trade bids, from bonded trade contractors, well in advance of their closing time, reducing their risk and allowing them to submit complete and accurate tenders.
• The system reduces the possibility of duplication in trade bids that may often cost owners money.
• The system reduces the possibility of unethical post tender negotiations with trade contractors, which are often at the expense of owners.

Quality Control

• Although the system is not designed to prequalify trade contractors, it is part of the process; bonding provides an inherent prequalification.
• The team building process that is part of the Bid Depository system promotes harmonious relationships that contribute to the quality of workmanship.

Reducing Risk

• An owner’s potential risk is reduced because general contractors receive timely, written bids from bonded trade contractors, increasing owner security.

WHAT HAVE BID DEPOSITORY USERS SAID ABOUT THE SYSTEM?

A General Contractor

"In this era of team building, what better way is there to build an effective team than with the Bid Depository system?"

A Trade Contractor

"Because we depend on the integrity of general contractors, architects and owners, the use of the Bid Depository helps ensure that our interests are secured."

An Owner’s Representative

"We spend a lot of time and energy choosing a designer for our projects, so leaving the choice of trade contractors to chance seems incongruous. We believe that Bid Depository gives us the assurance that we are accepting only those trade contractors who are financially and technically capable of completing our projects."

An Architect

"We support the Bid Depository because we feel that it is the most equitable tendering process for trade contractors."