Whitchurch-Stouffville
September 13, 2008 08:21 PM
Low bidder didn’t include GST, may not get $23.7-million job
By: Alyshia Higgins and Jim Mason
Lowest bidder wins the prize? Maybe not in this case.
Bondfield Construction Company Ltd. was the lowest bidder on Stouffville’s new fire hall and arena project, but it may not get the contract.
In its bid, Bondfield did not include the GST in its total price, something John Aquino, vice-president of the Vaughan company, said may cost it the job. Bondfield built the new Stouffville District Secondary School and Harry Bowes Public School in Stouffville as well as the Bill Crothers sports school in Unionville during the last two years.
“The other tenders included GST in their bid,” said Mr. Aquino, who called The Sun-Tribune. “We interpreted the tender documents (as saying) we didn’t need to put it in. Everybody knows what the GST is.”
Mr. Aquino also said Bondfield made it “very clear” in its application that the GST was on top of the listed bid.
Town of Whitchurch-Stouffville CAO Dave Cash said Bondfield did not follow the instructions listed for the tender.
“In this particular tender, we asked on the bid form that bids include all applicable taxes,” he said. “In this case, this company’s (Bondfield) bid did not include all taxes.”
Bondfield’s bid was $22,575,000 plus GST for a total of $23,703,750.
Norlon Builders from London, Ont., quoted $24 million, all taxes included. They are the second lowest bid.
Norlon officials did not return The Sun-Tribune’s calls.
Four companies bid on the project, which is expected to be complete late in 2009. The site, on Weldon Road between Sobeys and Stouffville District Secondary School, is being prepared for construction.
Mr. Aquino said not only was the company surprised to find out their tender may be disqualified, he was “concerned” the town would spend an extra $300,000 of taxpayers money and award the tender to the second-lowest bidder.
“They (Norlon) don’t hire any local people, their people don’t pay taxes here,” he said. “I don’t know why they’d pay more money to give it to a non-local contractor. They could use that money to upgrade the facility and do something better.”
“The bottom line is, they had to include all applicable taxes,” Mayor Wayne Emmerson said. “If you don’t do everything according to what (the tender says), then your tender could be disqualified.”
Mr. Cash said despite Bondfield being the lowest bidder, the town does not have to award the contract to the lowest price.
“In order for us to award to the lowest tender, we need to know what the full price is, that’s why we do our analysis very carefully,” he said.
He said the town treats every bidder fairly.
Mr. Emmerson said another company missed the 3 p.m. bid deadline by seconds, and its bid was not accepted.
The town’s recommendation of which tender to accept will be brought before council Tuesday night.
Town staff was reviewing the tender documents this week.
Clive Thurston, president of the Ontario General Contractors Association, said the town did not follow the industry standard with the tender. GST is not normally included, he said.
Bondfield is a member of the association. Norlon is a former member.
“This same stuff keeps coming back to haunt us,” said Mr. Thurston, who has led the association for seven years. “We have good, established practices, but some people want to re-invent the wheel.”
He recommended the town take the issue to arbitration. It could end up in court.
Recent judgments favour Bondfield’s argument, he said, but that could change.
“It’s unfortunate,” he said. “It’s a waste of time for everybody. It delays the project and it’s so simple to avoid.
“And it’s the taxpayer who is always on the hook.”
In May, a Scarborough company that was low bidder for work at the Stouffville Arena cried foul after another firm was granted the contract by the town.
Black & McDonald Ltd. quoted $97,985 for refrigeration plant upgrades while the successful bidder, Cimco Refrigeration, quoted $98,000. Both companies were invited to bid on the job.
Black & McDonald officials said they may not bid on work at the town’s new twin pad arena because of the decision.