What Is The Bid
The Bid Depository
is a method of receiving sealed tenders from subtrade contractors in a way that
the sanctity of bidding is maintained. Those receiving tenders obtain firm
quotations in writing and in an adequate time frame to compile their own Bids
completely and accurately, on an understood and previously agreed upon scope of
work common to all bidders.
The Saskatchewan Bid Depository System requires the trade contractor to submit
their tender in accordance with the Bid Depository Rules and Regulations. Bid
Security is a requirement of the Saskatchewan Bid Depository System for Bids
over $40,000. The sealed tender is delivered to the designated Bid Depository
office at a specific time and date.
It is important to note that any contractor can use the system; there are no
The User's Manual and Trade Scopes are reviewed on an annual basis. Over time
there have been amendments made to the Standard Rules and Procedures and to the
Trade Scopes. Recommendations for amendments to the Rules and Trade Scopes come
about as a result of usage experience and out of a review process that involves
the Construction Industry in Saskatchewan. All Saskatchewan Branches of the
Saskatchewan Bid Depository use common Regulations and Trade Scopes. Common
closing times accommodate contractors who may not reside in the community in
which the project is closing. General Contractors and Owners both enjoy the
benefit of province-wide participation in the tender process.
Why The Need For
A Bid Depository System?
Industry in Saskatchewan believes that a uniform tendering system is necessary
for building construction projects where the owner requires a lump sum tender
based on plans and specifications and where a large number of General
contractors, trade contractors and suppliers are involved in the tendering
A uniform system of tendering prevents last minute tenders, incomplete tenders,
qualified tenders, and prevents the “shopping” of tenders. The system
decreases the risk to General contractors, in turn protecting the owner’s
investment. The development of the Standard Rules and Procedures along
with the Trade Scopes maintains an orderly system within this diversified
What Are The
Advantages Of A Bid Depository System?
For the Owner and
the Tender Calling Authority:
encourages more contractors to bid because of the inherent fairness of the
favours the owner.
fosters confidence between the General and Subcontractor.
promotes a harmonious relationship within the construction team which serves
allows the General Contractor time to prepare and finalize the tender.
alerts the tender calling authority to problem areas.
The sanctity of
the bids and the security of the system insure public owners that the
bidding process is fair and open and will stand up under public scrutiny.
security provides assurance of legitimacy of subcontractors.
Takes the hassle
out of dealing with tenders.
system prevents the added burden of last-minute sub-trade questions.
For the General
Contractor receives clear, unqualified bids in writing.
The Trade Scopes
ensure Bids are based on a previously agreed upon and understood scope of
work common to all bidders.
encourages every trade to bid all General Contractors.
The incidence of
misunderstandings and bidding withdrawals is significantly lowered.
Subs are able to
bid General Contractors knowing the sanctity of their bid will be
promotes mutual trust.
creates better co-operation throughout the project through a clear
definition and understanding of the Scope of Work.
Finally, the Rules
and Standard Procedures provide a dispute resolution mechanism that ensures
complaints and violations of the regulations are dealt with quickly and
expeditiously with serious sanctions imposed on any transgressors.
Here’s How The
subcontractor addresses copies of their tender to the General Contractors
bidding the Project. The trades may bid to the General Contractor of their
choice. It is not necessary to bid all the Generals.
subcontractor addresses an additional copy to the SBDI.
envelopes are used to distinguish between the General Contractor copy and
the SBDI copy.
envelopes are enclosed in an official large white envelope addressed to the
SBDI. This envelope must be delivered before the specified tender closing
time and deposited in the designated box for that project at a SBDI Branch.
the common closing, the envelopes are shipped to the closing SBDI branch and
opened. The enclosed envelopes are then dealt with as follows:
subcontractors’ envelopes are released to the General Contractors.
One copy of each
bidders tender is retained by the SBDI.
So How Do You
Specify The Use Of The Bid Depository System?
There is a simple
procedure to be followed by the tender calling authority, which simply involves
the tender calling authority to notify the appropriate SBDI branch in writing of
their intent to use the system.
wording for this instruction is as follows:
Depository Inc. Rules, Regulations and Trade Definitions effective January 1,
2007 and subsequent amendments approved by the SBDI prior to receipt of bids,
shall apply to this project.
from designated subtrades shall submit their bids for General Contractors to
before 2:00 p.m.
on ___________, 20 ____.
(3 working days
prior to the General Contractors closing).
What About The
Construction Management Process?
Many will ask how
the Bid Depository System fits with the Construction Management process where
there is obviously only one General Contractor. The answer is that the system
of review and the flexibility built into the system allow the Bid Depository
to make amendments to the Rules and Procedures that accommodate the
Construction Management process. The procedure is not that complicated. The
local branch management committee that is carrying the project is empowered to
meet with the Construction Management Team to determine what amendments are
necessary to allow the Management team to utilize the Bid Depository. The
recommendations are reviewed by the Provincial Executive of the Bid Depository
to insure the fundamental principles of the Bid Depository System have not
been breached. The agreed upon amendments are published as pre-tender rulings
and apply to that specific Construction Management project only.