Demystifying the
BSDQ

File 8 - Validity of tenders

Any bid submitted to the BSDQ is valid for a specific period, determined by the rules of the Code rather than by the contractors. This period will be calculated based on one of the situations described below. 

Three possible situations:

1. According to the instructions in the bid documents

When the bid documents specify the validity period for the bids of specialized contractors, this timeframe must be respected.

Conversely, if the validity period in the bid documents refers to general contractors, the following situation will apply.


2. Based on the validity period for general contractors

When the validity period in the bid documents refers to general contractors, this period must be used as the starting point for the following calculation: 

General contractor's validity period + 20 days = MAXIMUM validity period for the specialized contractor. 

Example: 60 days + 20 days = 80 days. Here, the specialized contractor's bid is valid for a maximum of 80 days.

Two possible scenarios:

Scenario #1

This scenario shows that the general contractor obtained their contract 5 days after the project owner's closing date for bids. Therefore, from that date, they have 30 days to subcontract their contracts. After this period, the validity of the bids expires.

Scenario #2

This scenario shows that the general contractor obtained their contract 58 days after the project owner's closing date for bids. Since it is impossible to add 30 more days following this award without exceeding the maximum validity period, the general contractor will have 22 days to subcontract their contracts.

This validity period is calculated in calendar days starting from the closing date of bids at the BSDQ.

 

3. According to the validity period of the bid form

In the absence of any period mentioned in the bid documents, both for the general contractor and the specialized contractor, the BSDQ bid form provides that the bid is valid for 45 days.

This validity period is calculated in calendar days from the bid closing date at the BSDQ

Additionnal information

Related Tendering Code articles

It should be noted that, for interpretation purposes, the French text shall prevail over the English, the latter being a translation of the French original. 

Chapter D - Articles D-10 and D-14

D-10 Mandatory tender security

Each tender whose price is equal to or greater than the amount indicated in Schedule III of this Code must, even if the tendering documents do not require it, be accompanied by a tender security. A tender not accompanied by this security is non-compliant and cannot be accepted by the recipient contractor.

The tender security may be provided in the form of a tender bond and letter of intent issued by a legal entity whose name is listed in Schedule II of this Code. This security gives the lowest compliant tenderer the right to obtain the contract, in accordance with Section J-2 of this Code.

The tender security may also be provided through an electronic money transfer to the BSDQ account allocated for this purpose, unless otherwise indicated in the tendering documents. This security does not give the lowest compliant tenderer the right to obtain the contract, in accordance with Section J-2 of this Code, unless they are able to provide a performance bond and a labour and materials payment bond within five (5) business days of a request to that effect from the successful recipient contractor.

The tender security, whether provided in the form of a bond or electronic money transfer, shall be equal to ten percent (10%) of the tender price, unless otherwise indicated in the tendering documents.

D-14 Refund to tenderer of the amount paid as tender security and release from bond

Legal entities that have issued tender bonds provided by tenderers as tender security are released in accordance with the terms and conditions of the tender bond.

The amount paid as a tender security is refunded to the tenderers ten (10) days after the deadline for filing tenders at the BSDQ if the BSDQ’s analysis of the filed tenders and the taking possession thereof by their receivers does not identify them among the three (3) lowest tenderers for the specialty covered by their tender.

The amount paid as a tender security is refunded to the three (3) lowest tenderers upon expiry of the period of validity of their tender or as soon as a contract for the work covered by their tenders is concluded with the successful tenderer. It is also refunded when the successful tenderer has provided, at the request of the successful recipient contractor pursuant to Section D-10 of this Code, a performance bond and a bond for the payment of labour and materials or, if they were unable to do so, when the successful recipient contractor chooses to award the contract to another tenderer.

The tenderer and the successful recipient contractor must inform the BSDQ as soon as a contract is concluded so that the BSDQ can refund the amount paid as a tender security as soon as possible.

Chapter F - Article F-2

F-2 Withdrawal period

A tenderer may withdraw their tender during the period between the availability of tenders by the BSDQ and the closing time for the filing of tenders by recipient contractors.

The withdrawal period expires eight (8) business hours before the closing time for the filing of tenders by recipient contractors.

Once the withdrawal period has expired, the tender remains irrevocable for the entire period of validity specified therein.

The withdrawal period is not extended by any postponement in the closing time for the filing of tenders by the recipient contractors if such postponement occurs, or if the BSDQ is notified of such postponement, after the tenders filed at the BSDQ have been made available.

Chapter I - Articles I-1 and I-3

I-1 Cases of a recall for tenders

A recall for tenders for work in a regulated specialty may be requested by the project owner or by the successful recipient contractor and authorized by the BSDQ in the following cases:

  1. when the project owner decides to modify the tendering documents that were the subject of a previous call for tenders;
     
  2. when a unique tender has been filed;
     
  3. when more than one tender has been filed, but only one has not been withdrawn before the expiry of the withdrawal period provided for in Chapter F of this Code;
     
    1. c.1) when, following a written request by the recipient contractor, the lowest compliant tenderer has refused to extend the validity period of their tender under the same conditions as those required of the recipient contractor by the project owner;
       
  4. when, because of a law, decree, or government regulation, an insufficient number of tenders have been filed;
     
  5. when the BSDQ, after consulting with the project owner, deems it appropriate to authorize a recall for tenders.

In the cases mentioned in Subsections a) and d) of the previous paragraph, if the request for a new round of tendering is made by the successful recipient contractor, the request must first be approved by the project owner.

If more than one tender has been filed, no recall for tenders shall be authorized at the request of the successful recipient contractor on the grounds that only one compliant tender has been filed to them.

Even if only one tender has been filed to the successful recipient contractor for a regulated specialty, if the contractor has taken possession of it and if more than one tender has been filed for that specialty but for other recipient contractors, it shall not be considered, for the purposes of this Section and Sections I-2 and I-3 of this Code, to be a case of a single tender. Nevertheless, in such circumstances, a recall for tenders may be authorized at the request of the successful recipient contractor if the filed tenders that are not addressed to them are addressed to only one recipient contractor. The successful recipient contractor must demonstrate, at the time of their request, that they have availed themselves of the provisions of Section J-7 of this Code.

Even if a single tender covering several specialties has been filed as permitted by Sections D-4 and D-4.1 of this Code, no recall for tenders shall be permitted when more than one tender has been filed for each of the specialties covered by the tender covering several specialties.

If more than one tender covering several specialties has been filed, as permitted by Sections D-4 and D-4.1 of this Code, a recall for tenders may be authorized only for those specialties for which no tenders or only one tender has been filed.

I-3 Recall for tenders open to all tenderers

Any tenderer may file a tender during a recall for tenders in the following cases:

  1. when a single tender was filed during the initial call for tenders;
     
    1. a.1) when more than one tender was filed in response to the initial call for tenders, but only one was not withdrawn before the expiry of the withdrawal period provided for in Chapter F of this Code;
       
  2. when fewer than three (3) tenders were filed during the initial call for tenders and there is a change to the tendering documents;
     
    1. b.1) when, following a written request by the recipient contractor, the lowest compliant tenderer has refused to extend the validity period of their tender under the same conditions as those required of the recipient contractor by the project owner;
       
  3. when the number of tenders filed during the initial tender process was less than the number required by a law, decree, or government regulation;
     
  4. when the project owner is a public body subject to a law or regulation approved by the Government of Canada or Québec requiring it to proceed by public notice in newspapers for the execution of construction work, and when that body has determined that it must act in the same manner for the recall for tenders;
     
    1. d.1) when the recall for tenders has been authorized pursuant to Paragraph four of Section I- 1 of this Code;
       
  5. when the BSDQ deems it appropriate, after consulting with the project owner, to allow the recall for tenders to be open to all tenderers;
     
  6. when the recall for tenders has been authorized by the special committee in accordance with Section I-1.1 of this Code.

Chapter J - Article J-3

J-3 Cases where a request for permission to award a contract to a tenderer who did not file the lowest compliant tender is granted by the BSDQ

The request to award a contract to a tenderer who has filed a compliant tender, but who has not filed the lowest tender will be granted in either of the following circumstances:

  1. when the project owner requires in writing that the subcontract for a regulated specialty be awarded to a tenderer who has filed a tender through the BSDQ in that regulated specialty but who is not the lowest tenderer, and if the contract with that tenderer is awarded at the price and conditions of the tender that they themselves filed in accordance with the Code;
  2. when a comparison of the various tenders filed does not make it possible to determine which tender is the lowest because these tenders relate to different works, provided that the contract with the successful tenderer is then awarded at the price and conditions of their tender;
  3. when the lowest compliant tenderer refuses to enter a contract or when, despite filing a letter of intent, the lowest compliant tenderer is unable to obtain a performance bond and a bond for the payment of labour and materials;
  4. when, following a written request by the recipient contractor, the lowest compliant tenderer has refused to extend the validity period of their tender under the same conditions as those required of the recipient contractor by the project owner.

The request made to the BSDQ must be in writing and contain the reasons justifying it. All contractors concerned must have received a copy of the request and may make written representations to the BSDQ and provide any evidence they deem useful.

The BSDQ may, in all cases, require the filing of written and sworn statements and must rule on the request within ten (10) days of their receipt.

Subject to the requirement of the project owner set out in Subsection a), when the BSDQ agrees that the contract should not be awarded to the tenderer who addressed the lowest compliant tender to the successful recipient contractor, the latter may only award the contract to the compliant tenderer who addressed to them the lowest tender immediately after the tenderer covered by a request made in accordance with this Section.

Continue reading
File number 7 - Tender withdrawal
Step number 3 - File number 1 - Tabulation of tenders