Frequently Asked Questions for Tendering
- Alberta Transportation does not use a bidder pre-qualification process. If the bidder is capable of completing the work, has safety certification recognized by ACSA, and is registered with Alberta Government Services, Corporate Registry, their bid will be accepted by the Department. Tenders are awarded based on the lowest compliant bid received.
What type bid security is required by Infrastructure and Transportation?
As outlined in section 1.2.7 BID DEPOSIT of the Standard Specs the department will accept any of the following Bid Bond, Certified Cheque, Money Order or a Bank Draft equal to 10% of the tender amount.
What type of Labour & Material and Performance Security are required?
As outlined in section 1.2.9 SECURITY of the Standard Specs, the department normally requires a 50% bond for the performance of the contract and 50% bond for payment in full of claims for labour and materials.
What are the department’s payment process 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). Refer to section 1.2.26 PAYMENT AND HOLDBACK for further details.
What process is followed for dealing with issues on the job site, and what is the claims process should matters not be resolved?
The contracts contain a mechanism to permit the contractor to comment and question directions given by the department’s consulting engineer (example refer clauses 1.2.28 AUTHORITY OF THE CONSULTANT and 1.2.31 STAKES, MARKS AND ENGINEERING TESTS. Should the contractor and the consultant be unable to resolve the matter then the contractor is permitted to submit a more formal Claim as outlined in clause 1.2.54 CLAIMS AND DISPUTE RESOLUTION, which allows for a three level administrative review process (Consultant, Regional Director and Executive Director Program Management Branch) prior to proceeding to Mediation and/or Arbitration. The process does not permit Litigation unless both parties agree to this method. The process is working well with the majority of the issues being resolved at the site level.
How does the Department administer its construction projects?
In 1996, the Department out-sourced the majority of its design and contract administration functions. The Department hires engineering consultants to prepare the project design, and to supervise the contractor on behalf of the Department. Department staff administers the tendering of all highway, bridge, and water management projects, and administers the contract award process.
Please contact Jim Harvey, Director of Tender Administration, if you have any questions or comments regarding the information on this page.