Pay now to save later: unrestrict construction tenders


City council started tonight talking about the city’s current position to be restrictive on outside bids for construction contracts.

This means that construction bids or tenders outside the city’s designated contractors are not allowed or invited.

The Sault is one of only 4 municipalities in Ontario that restricts tendering.

There are “local companies paying local taxes,” said councilor Matthew Shoemaker that are shut out from local contracts.

In 1998 and 2004 the city had tried to unrestrict construction tenders for the city but was unsuccessful.

One to 30 per cent cost savings may be possible in decertifying on upcoming projects.

The cost to decertify is $150,000 to $175,000.

The city was certified as a construction employer in 1987.

Restrictive tendering was referred to as having a “monopoly” on the city and savings to the city could amount to millions of dollars over a small number of years.

This process to decertify needs political changes to the Municipal Act in the long run, but council wanted to start the process.

The next mayor and council will likely have to uphold this matter.

But this city council voted in favour of starting this process.