Mr. Speaker, my second return to an oral question asked by Mr. Krutko on September 22, 1998, compensation for unsuccessful contract bidders.
There is no standard time period after a tender closing during which contractors have the opportunity to negotiate on a reduced scope in price before the tender is cancelled.
This question is answered in the document Construction Tendered Contract, Instructions to Tenderers, Item 19. It says, Mr. Speaker,
19.2 The submission of the lowest or any tender will not necessarily result in the award of a contract. The owner reserves the right to cancel this tender in whole or in part at any time and to retender the same for any reasons whatsoever without incurring any liability and no bidder will have any claim against owner as a consequence.
In situations where bid prices exceed the available budget, Public Works and Services will try to negotiate with the lower bidder in order to reduce the scope and the price. This is done within the time limits of the project at hand.
If negotiations with the low bidder are not successful within a reasonable time and if time is critical to the delivery of materials or completing the work, the original tender will be cancelled and a reduced scope of work re-tendered.