What’s closed (sealed) bidding?

It is the process of submitting sealed bids to a project where no one would know the specs or the price of any contractor’s bid until a defined date. Once this date is reached, all sealed bids are opened simultaneously in front of multiple witnesses. Bids are then analyzed and compared to determine the best offer, usually by a committee.

This methodology of receiving bids, which is a well known international standard, helps the owner of the project to receive highly competitive bids as well as to eliminate fraudulent activities in the procurement process.

condonuity.ca offers this feature out of the box on it’s platform in an automated, electronic, and streamlined fashion.

Recommendations from the official review of the condo act

To prevent fraud and kickbacks: “ Whenever a corporation contemplates a service contract valued at, for example, over $50,000, a sealed-bid process should apply with all the standard safeguards” (source: province of Ontario’s official review of condo act, stage II, 2013)

https://www.ontario.ca/page/public-feedback-condo-act

https://files.ontario.ca/condo_act_stage_2_solutions_report_en.pdf

Recommendations from the Condo Authority of Ontario

The board of directors needs to ensure they

1

Receive value for the condominium’s money

2

Are selecting contractors in a fair and accountable manner

3

Take steps to prevent inappropriate payments and fraud

Procurement best practices

Develop the scope of work and publicly post

  • A clearly defined scope of work
    • Ensures all bidders are providing estimated costs for the same work
    • Allows for easier comparison of bids
    • May be prepared by a professional, such as an engineer or architect, depending on the technical nature of the project
  • In addition to issuing to all known bidders, a public posting of the scope of work (public tendering) encourages bids from a wide range of qualified firms this helps to ensure the condominium receives the best quality work or service for the best price

Obtain a legal review

Include a transparent Q&A process and /or a site visit

  • During the bidding process, any questions, and their answers, should be made available to all bidders
  • By making this information available, the board is ensuring a fair and transparent competitive process and that all bids are based on the same information
  • A site visit may also be helpful to allow bidders to see the site and any conditions that might impact their pricing, as well as to ask questions to clarify the requirements

Receive Bids

  • All bids should be opened at the same time
  • Ideally, the opening of the bids should be witnessed by more than one person; and, immediately recorded
  • Late bids should be returned to the bidder unopened

(source: Condo Authority of Ontario, Director’s training, module 16: Procurement Processes)

https://caotraining.skillbuilder.co/account/learning-plan/2/1