BCCA Draws Attention to Onerous Clauses in Bidding Documents
In an effort to advise contractors of the risks associated with onerous clauses in bidding documents, the BC Construction Association (BCCA) will be issuing Contractor Alerts. The Alerts will be based on direct input from industry bidders, and will identify projects and onerous clauses in bidding documents. Copies will be sent to all contractors as well as the bidding authority.
The decision to issue the Alerts was based on a guideline that was created by the Canadian Construction Association (CCA), which identified growing concern across Canada over onerous contract conditions, which some contractors see as an impediment to bidding on projects. CCA’s guideline identified some common causes of the emergence of onerous contract conditions:
- An owner has experienced a problem on a particular issue and wants to ensure it does not happen again.
- A lack of qualified and knowledgeable staff has led to owners looking for assistance beyond the normal sources.
- Institutions and government now rely heavily on their purchasing departments rather than their construction staff.
- The employees, while able to obtain the best deal on a gross of pens, are not skilled in the construction tendering process.
BCCA’s intention in the use of the Alerts is to identify onerous clauses and to advise contractors to consider the risks they may assume by responding to a bid. The contractors can then decide if and how they want to bid.
The BC Construction Association website can be found at www.bccassn.com