In an article that ran in today's Windsor Star, three city councillors who broke the City of Windsor's procurement rules justified their actions by citing savings to taxpayers.
Public owners are exerting greater control over the tendering process, citing the need for greater transparency and accountability. The architecture community, who have traditionally provided this service, feel they have the skill and tools to perform this service, and that the shift in responsibility may be driven by owners' desire to cut fees.
Our conference Chairman, Stephen Bauld, is convinced the public sector can save more than $1 billion a year in Ontario through more efficient construction contract procurement practices. For more information, read this article that ran in today's Daily Commercial News: http://www.dcnonl.com/nw/14975
I had an interesting conversation yesterday with a fellow who heads up construction for a property developer. The discussion worked its way to the process by which they put projects out for bid, and more specifically the trade-off between increasing coverage (and presumably competition) and the effort involved with evaluating more bids and bidders. My friend said he generally prefers inviting a small group of proven suppliers, rather than exposing their projects more broadly. He felt the cost of evaluating more bids and bidders, and the risk of contracting with a unknown vendor, would wipe out any savings that might result from a more competitive bidding process. He is, however, worried about keeping his suppliers competitive, and not just in terms of price. He's also concerned about innovation.
As the situation at eHealth unwinds in the media, it’s apparent that the process by which large, complex public projects are procured and delivered is less than ideal. Understandably, the public is frustrated by what appears to be massive waste at a time of ballooning government deficits. No doubt people will be held accountable, but this problem has been building for some time and likely predates their involvement. We need to get beyond the politics and examine the range of root causes, big and small, before lasting change can occur.
With 33% more downs and 10% more yardage than the NFL, the Canadian game offers great value for money, something procurement professionals will appreciate! We will be hosting a Grey Cup social at Deerhurst Resort, right after the opening dinner. Meet old friends, make new ones, and support your favourite team. I hope to see you there.
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