CONSTRUCTION LAW
• Bid suppression – a competitor agrees not to
bid or to withdraw a bid so a speci!c bidder is
most likely to win
• Bid rotation – competitors agree to take turns
at winning bids
• Market division – competitors agree to divide
territory, customers or product markets
among themselves instead of competing
"e Competition Bureau notes that bid-rigging
undermines the competitive bidding process
because it allows suppliers, rather than
market forces, to determine price and quality.
"e Competition Bureau claims that bidrigging
can increase the cost of multi-million
dollar public procurements by over 30 per
cent, which in turn diverts public funds to colluding
bidders.
"ere are no monetary limits on the !nes that
can be issued for bid-rigging as such decisions
are le# up to the discretion of the courts. Anyone
convicted of bid-rigging can face a jail term up
to 14 years, they will also have a criminal record
that will be registered with the Canadian Police
Information Centre. In addition to the criminal
charges and !nes, perpetrators of bid-rigging can
face civil action from victims.
How can you detect
bid-rigging?
Bid-rigging inherently involves backroom discussions
and deal-making, which makes it dif-
!cult to detect. "e Competition Bureau has
previously produced documents on detecting,
preventing and reporting bid-rigging.
Competitive Bidding Processes warns that public
o$cials should be on the lookout for the following
warning signs:
• Large price deviations between the winning
bids and other bids
• Identical irregularities across independent bids
• Winning bidders refusing to accept a
contract once awarded
• Once awarded, winning bidders
subcontracting to losing bidders
What can be done to
deter bid-rigging?
In addition to its earlier publications about
detecting, preventing and reporting bid-rigging,
the Competition Bureau in Competitive
Bidding Processes provides some guidance for
RUDALL30 / 123RF
Helping Road Builders
Since 1990
www.westernheritage.ca
From our office in Saskatoon, Western
Heritage works with municipalities,
engineering firms and road builders in
consultation on new aggregate sources,
archaeological studies, map road profiles
with lidar, GIS solutions for roadway
management and much more. Western
Heritage has worked on road projects from
Stoney Rapids to Oxbow and all points in
between, providing:
• Consultation and Engagement
• Heritage Overviews
• Heritage Assessment and Mitigation
• Mapping Road Profiles
• GIS solutions for Land capability
assessment
• GIS solutions for roadway management
• UAV Services
Saskatoon, St Albert, Calgary, Winnipeg
1-877-669-0784. info@westernheritage.ca
thinkbigmagazine.ca | Quarter 2 2021 | Think BIG 53
/www.westernheritage.ca
/thinkbigmagazine.ca
link
/www.westernheritage.ca
/thinkbigmagazine.ca
link