City Councilors, Provincial Auditors and the Public have been showing concern for the claims made by developers, and private operators regarding housing project expenses. Claims that these operators’ costs have escalated over time, causing them undue financial pain is a cry to the powers to be that prices need to increase. Capitalism at its worst. Purchase Orders have been given yet operators simply know they do not have to stand by their quoted prices.
How operators work: Bid upon a project and lowball knowing that in time you can increase your prices possibly several times, particularly if it is a project that takes time to finish. Transit, roads, community centers and developments are perfect examples of projects whose prices can be manipulated by the private sector well in advance of completion.
How bidding should work: Know the project well, investigate it, evaluate the time needed to complete, what the costs will do over time(fluctuate), personnel requirements, third-party bidding guarantees etc. Make the bid with an appropriate profit margin. One bid unchanging except if an act of God event stops development. Bidding & then overcharging has become an acceptable practice,e, particularly within local-municipal projects. For example, look at Union Station in Toronto. the project was well over time, exceptionally late in completion and had cost overrides that could strangle local government’s budgets. Toronto and the Provincial Governments did not handle this project well, no sir, and the developers were paid in full to boot!
A general overview by the Provincial and Municipal Auditors is always welcome and a necessity to ensure proper bidding practices, building code maintenance, time to build projects to be prompt and on time. Far too many hands are found within the bidding and project granting process. Also as a citizen of Toronto is responsible for paying his dues, and bills on time, so should the developers, operators and middlemen involved in these projects. Severe penalties need to be issued with no legal reframe given. Transparency in the process also demands full accountability from all involved.
Steven Kaszab
Bradford, Ontario
[email protected]
