Transportation construction tendering and contracting – Overview

Administration

Alberta Transportation administers the tendering of all highway, bridge and water management projects, and administers the contract award process.

The department hires engineering consultants to prepare the project design and to supervise the contractor on behalf of the department.

Bidding

Alberta Transportation does not use a bidder pre-qualification process.

A bid will be accepted by the department if the bidder:

• is capable of completing the work
• has safety certification recognized by the Alberta Construction Safety Association
• is registered with Alberta Corporate Registry

Tenders are awarded based on the lowest compliant bid received.

Security

Bid security

The department will accept any of the following:

• bid bond
• certified cheque
• money order
• bank draft equal to 10% of the tender amount

Labour and material and performance security

The department requires:

• 50% bond for the performance of the contract
• 50% bond for payment in full of claims for labour and materials

Payment and holdback requirements

The department will normally make monthly payments to the contractor based on a progress estimate (prepared by the consultant) and will hold 10% until the project is complete (alternate forms of holdback are permitted).

Claims process

The contracts contain a mechanism to permit the contractor to comment and question directions given by the department's consulting engineer.

Should the contractor and the consultant be unable to resolve the matter, the contractor is permitted to submit a formal claim, which allows for a 3-level administrative review process prior to proceeding to mediation and/or arbitration.

The process does not permit litigation unless both parties agree to this method.