Government Construction Projects Flashcards
Crown Construction Contracts Act
applies to every contract for the construction, repair or alteration of land or structures owned or administered by the Crown
Enforcement of Penalties
If a contract provides that a contractor shall pay a penalty it is enforceable against the contractor despite the following:
A) The penalty is a pre-estimate of damages likely to be caused by non-performance by the contractor within the stipulated period; and
B) the contract includes a provision for liquidated damages
Extensions of time and claims for additional money
crown may delegate to any person the authority to negotiate and settle the request of claim
Payment bonds
If amount is due to the crown under a payment bond, a person in the class covered as an assignee of the right of the Crown to recover an amount which is the lesser of the amount due for labor/service or the amount due to the crown under payment bond
Withholding payment by the crown
When notified in writing by sub or supplier that GC has not paid the crown may withhold the amount owing
Which act does the fed gov regulate contracts under?
Financial Administration Act
Treasury Board
General manager that established a series of policies governing public procurement
Underlying aim of public procurement
acquire goods/services and carry out construction in a way that enhances access, competition, and fairness and reaches the optimal balance of benefits to the Crown and the public
Regulations
Governor in Council makes regulations respecting conditions under which contracts may be entered into and respecting security to secure performance of contracts
When do regulations operate?
Direct the conduct where soliciting bids. When proceeding by tender
What about when not in bidding process?
the subsequent contractual negotiations are undertaken pursuant to the Crown’s inherent right to contract
Bids, presumption
Before any contract is entered into, the federal contracting authority must solicit bids for that contract
Exception to bid presumption
1) Emergency in which delay would be injurious to public interest
2) Estimated expenditure
3) Nature of work such that it is not in public interest to solicit bids
4) Only one party capable of performing K
Estimated Expenditure Exception for bid presumption
Estimated exp must be:
a) Lower than $25k,
b) lower than 100k where K is for design pro services for repair, or renovation of a work
c) lower than 100k where K is for design pro services for international development assistance project
Bids are solicited by
1) Giving public notice (in a manner consistent with generally accepted trade practices) of a call for bids respecting a proposed contract; OR
2) By inviting bids on a proposed contract for suppliers on the suppliers’ list
