• What is a Bid Depository?
• Is Bid Depository Mandatory?
• What is the value-for-money in using Bid Depository?
• Who administers the Bid Depository?

What is a Bid Depository?

A Bid Depository is a system for the receipt of sealed bids from trade contractors interested in work on major construction projects (e.g.: educational facilities, institutional/commercial buildings). Bid Depository enables Prime Contractors to obtain firm quotations in writing in sufficient time to properly analyze the quotes and to incorporate these prices into their bids. This fair and equitable process may be in the best interests of some Owners, Tender Calling Authorities and Prime Contractors and Subcontractors. 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.

Flowing from this stated purpose is the requirement that Prime Contractors name their selected trade bids on their tender form and upon being notified of being the successful Prime Contractor, enter into a sub-contract with bidders whose bids have been properly deposited and received by the Prime Contractor through the Bid Depository system. Following the submission of Prime Contractors tenders, substitution or replacement of the selected trade bidders is subject to specific approval of the Tender Calling Authority and/or Owner, based upon valid reason or circumstances which were not reasonable evident or assessable prior to the close of Prime Contractor tenders.

Bid Depository:

• Is based on a fair, equitable and transparent bidding process
• Is supported by the Canadian Construction Association (CCA) as per its policy: "CCA supports the use of the bid depository system in those areas where Bid Depositories are in regular operation and are operating under rules and regulations endorsed by local professional and construction associations for those trades served by them."
• Is recognized as a practice to help prevent bid shopping by parties to the tendering process
• Is based on local standardized rules and clear procedures which apply to all bidders
• Provides bid/pricing documentation to the Owner
• Ensures clear unqualified bids are received by the Prime Contractors in writing
• Can help alert all affected parties to potential tendering irregularities or problems with plans and specifications in advance of tender closing
• Has the potential to encourage more bids and therefore more competitive pricing
• Eliminates uncertainty in the bidding process when scope definition is used
• Ensures the security of bids and preserves the sanctity/confidentiality of pricing when all parties respect the process
• Protects both Owners and Prime Contractors from the threat of mistaken bids by allowing for trade contractor bid withdrawal in a timely fashion
• Allows for tender security (bonding) of Subcontractors, which provides the Prime Contractor with some protection from sub-trade non-performance thus providing more assurance of job completion.
• Is open to any bidder who meets the specifications, and bonding requirements giving Owners access to most of the industry.

Is Bid Depository mandatory?

While its use is voluntary, some government and MASH (municipal, academic, schools, hospitals) agencies have a policy that requires the use of Bid Depository. The generally accepted requirement by the Owner is to specify its use for trades with an estimated threshold value or greater on projects of a certain value. (eg: commonly mechanical, electrical, structural steel-depending on the size and nature of the project).

What is the value-for-money in using Bid Depository?

Cost Accountability

• Because the system promotes fairness and equality in the bidding process, trade contractors are more willing to submit their most competitive bid.
• Prime Contractors are more comfortable in submitting their most competitive bid as they receive written trade bids, from bonded trade contractors, in advance of their own closing time, reducing their risk.
• The system reduces the possibility of duplication in trade contractor bids that may often cost Owners money.
• The system reduces the possibility of unethical pre-and post-tender negotiations among parties to the process, which are often at the expense of Owners.

Reducing Risk

• An Owner's potential risk is reduced because Prime Contractors receive timely, written bids from bonded trade contractors.

Who administers the Bid Depository?

There is not a single bid depository in Canada that serves the entire construction industry. The bid depositories referenced on this website can be found is each of the ten provinces and many have multiple locations or branches with in a province.

Although most, if not all, are located in offices of their respective provincial and local construction associations, they may or may not be administered by association staff. Some may report directly to the construction association's Board of Directors, others to a committee of the association and yet others to an Advisory Board , while others may be governed by agencies who are at an arm's length from the Board and Officers of provincial and local Construction Associations. For further info on the management, governance and administration of the bid depository in each jurisdiction, visit the respective website for each bid depository listed in the Bid Depository contacts section of our website.

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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.