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Brian Madigan LL.B., Broker

RE/MAX West Realty Inc.,
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 

Phone: 416-745-2300

Cell: 647-404-8150 
Toll Free: 1-888-507-0817

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A Fair System Exists within the Construction Industry

December 28, 2017 - Updated: December 29, 2017

A Fair System Exists within the Construction Industry

Looking for a “fair bidding process” to emulate: look no further than the construction industry.

Usually, on major contracts, the closed tender process will be utilized.

That’s the “closed bid” system.

Owner / Architect

The Owner employs an Architect to come up with plans to construct a building. Once satisfied with the final revisions, the project will “go out to tender”.

Basically, that means the Architect will contact a number of construction companies and inquire whether they would like to bid on the contract. For government contracts, you may see these advertised in the newspaper.

Everything will be clear, everything will be “on paper”, everything will be “above board.

Right at the outset, each bidder is “valued”. Their contribution to the system is appreciated. They are treated with “kid gloves”. Why? If they felt mistreated, they wouldn’t come back. The entire system would fail. The next project would have no bidders. It’s ONLY because experienced contractors continue to participate that the system inherently works.

There’s “no” CHEATING. And, that’s very important.

Let’s look at some of the rules:

There’s a set date and time the tenders (bids) will be opened

The bids will all be delivered between 11:00 am and 11:59 am on a set day

Each bid must be enclosed in a sealed envelope

Each bidder is entitled to be present during the opening of the bids or have someone in their place present

Bids will be opened at 12:15 pm on that same day

The Architect will be in charge of the opening of the bids

The bids will be opened in the sequence in which they were submitted

As each bid is opened, it will be read out loud, identifying the name of the bidder and the price

Each submission will be circulated around the room to be viewed and examined by those present

At the conclusion of the session, the successful bidder will be announced by the Owner, a representative of the Owner or the Architect.

That’s it. It’s fair. It works in the construction industry. There’s no room for cheating.

Brian Madigan LL.B., Broker

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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

Phone: 416-745-2300

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