• The system was designed by and for contractors and is applied across Canada with differing rules and regulations.
• The system encourages Trade contractors to submit their best price first on a Bid Depository tender. Trade contractors prefer one chance to provide a complete price in the Bid Depository process.
• The Bid Depository system has a logical structure - it is not complex. All bids must be in writing, submitted in Bid Depository envelopes, and be available to Prime Contractors in adequate time for them to compile their own bids. If anyone has questions regarding the rules or the process, Bid Depository staff is available to provide assistance to all parties involved.
• Bid Depository definitions (applicable in certain provincial jurisdictions) stipulate which Trade is responsible for the work. The Bid Depository rules state how the process works. Most specifications follow the MasterFormat, however if the Owner/Tender Calling Authority wishes to make exceptions, they can be noted in the instructions to bidders.
• Trade contractors may withdraw a bid after submission. In most cases, this occurs when the Trade Contractor has made an error in compiling the bid or has missed a significant item. Trade contractors can withdraw bids without penalty - within a specified time frame - which still gives the Prime Contractor further time to compile prices for the work... By allowing these bidders to withdraw, the Prime Contractor and Owner are not forced to try to make a difficult situation work on the job site.
• The requirement for bid bonds on jobs with certain prescribed thresholds is designed to encourage qualified, capable Trade Contractors to bid. Because these are usually large public projects, all participants deserve this level of security.
• Prior to the tender call, the Owner/Tender Calling Authority may pre-qualify Prime Contractors using industry accepted prequalification methods. Trade contractors do not have to supply bids for every Prime Contractor listed.
• In most jurisdictions, Prime Contractors do not have to use the lowest bid in compiling their bid although they must use a bid received through the Bid Depository system.
• A Bid Depository closing takes only a few business days (usually two) from the Trade Contractor closing date until the time the Owner/Tender Calling Authority receives bids from the Prime Contractor. This time frame recognizes that Trade contractors and Prime Contractors need time to review all information and compile a complete and accurate bid to the Owner.
• The Bid Depository system is open to every Prime Contractor and Trade contractor, regardless of geographical location, or lack of membership in any construction organization or association.
• The Bid Depository system was formed with the intent to regulate the bidding process and control problems such as bid peddling, withdrawals, poor performance, and injurious industry practices. As noted above, the Bid depository System is an alternative to the call-in bidding system which can at times create some confusion in analyzing pricing and scope of work related to Trade contractor bids.
• Projects where there are no trade bids required, where there is no pre-designed structure, or heavy construction is required, wouldn't be appropriate for Bid Depository use (eg. design-build).
• The Bid Depository system eliminates a number of tendering problems and provides more time to verify unknown bidders and the completeness of all bids. Where scope definitions are used, it eases the comprehension of all parties as to who is responsible for specific work to be performed.
• In certain jurisdictions, there may be multiple locations where the Bid Depository will receive notification of intent to bid on a project from Prime Contractors. Once the deadlines for notification have lapsed, the Bid Depository staff will make ensure that all locations have identical information. The bids will be collected, sorted, and parceled for delivery accordingly. The Owner/Tender Calling Authority no longer has the burden of deciding where to close his project. The Bid Depository will work with the Owner/Tender Calling Authority to determine whether it should close in a single or multiple locations. The result can be that project receives more bids and therefore more competitive pricing.
• If/when required, each bidder must submit tender/project security in the same form and amount as that which is specified to be provided.
• Most Bid Depositories will allow Prime Contractors to do any of the listed Bid Depository scopes of work with their "own forces". They must advise the Bid Depository in writing and they will not receive bids pertaining to those specific Trades. It is usually mandatory that the Prime Contractor do the work with his or her own employees. If they are unable to do so, they must then use a Trade contractor who bid through the Bid Depository system.
• The Owner/Tender Calling Authority can vary from the Bid Depository rules providing the specific instructions are documented in the "Instructions to Bidders".
• Usually the Owner/Tender Calling Authority will advertise a Bid Depository closing stating where/when the tenders will be accepted. The same information will also be stated in the front end of the specification. The Bid Depository will also know because the Owner/Tender Calling Authority must reserve a closing time prior to advertising.
• In most jurisdictions, a Prime Contractor who did not receive any bids on a particular Bid Depository specified trade is free to obtain bids outside the Bid Depository system for those particular trades only.
• Any late tender envelopes will be time stamped and retained, and shall remain unopened, by the Bid Depository. They shall not be distributed or delivered to the intended Prime Contractors and will be returned to the submitting bidder after the closing time.
• The local affiliated construction association will specify the minimum number of sets of plans and specs needed for plan rooms for a Bid Depository project.
• Project closing times vary by jurisdiction but usually offer numerous options for the convenience of the Owner/Tender Calling Authority.
• Addenda notification times vary by jurisdiction, but should allow for adequate time to provide written answers to questions from bidders.

Top of Page

© 2006 Canadian Construction Association

Disclaimer: This website provides general information only. The Canadian Construction Association does not warrant the accuracy of the information, and users of any of these links rely upon the information at their own risk. CCA accepts no responsibility for any loss, damage, injury, or consequential damages to persons or property arising out of or connected with the use of this website.