Report of the BIG: a montreal contractor was asked to make a contribution to its sub-contractors

Rapport du BIG: un entrepreneur montréalais demandait une cotisation à ses sous-traitants

Illustration: Design Montréal
This is the contract for the extension of the library of Pierrefonds (seen here on an illustration of architect) which is at the heart of the investigation of the BIG.

The Office of the inspector general (ig) has found that the contractor who has been awarded the contract for expansion of the library of Pierrefonds had been imposed on its sub-contractors a contribution of 5% to 15% each time that a direction of change (or ” extra “) was given.

The BIG intends to send this folder to the Unité permanente anticorruption (UPAC) and the public procurement Authority (GPA).

In the spring of 2017, the company Les Constructions Lavacon inc. had won the contract to $ 20.4 million for the expansion and redevelopment of the library area of Pierrefonds. The work finished last fall.

Thirty contractors worked on this project under the responsibility of Lavacon, and the BIG has met 10. In the course of its investigation, the oig found that Lavacon required that its sub-contractors that they take the commitment to grant him a rebate (” rating “) of 5% to 15% every time a change was made to the original contract.

The sub-contractors sent a submission to Lavacon who returned a purchase order reduced by the agreed share for the discount. Subsequently, Lavacon presented the bill to the City. For example, according to a new report by the BIG, a subcontractor, has been sent to Lavacon an estimated $ 13 500 $. On the same day, Lavacon has submitted to the City the estimate of the subcontractor by adding 12 % for “administration fees” in the name of the sub-contractor for a total of 15 120 $.

Several of the contractors interviewed as part of this survey of the BIG have thus admitted that they have increased the prices of their estimates to take account of the discount.

“Manipulate a sub-contractor to pay a “rating” to be able to work in a project that is already unacceptable in itself, ” wrote the inspector general Bridget Bishop in his report presented Monday at Montreal city council. “Added to this is also the result on the sums credited to the directives of change. The acts of Lavacon have deprived the City of Montreal to obtain the right price for the directions of change. “

The acts committed by Lavacon constitute a “fraudulent scheme” under the Rules of contractual management, stresses Me Bishop, who recommends that the company be registered in the Register of persons who are not eligible and will not be able to obtain contracts for a period of 5 years.

The inspector also recommends to equip more employees of the City so that they can better counter such tricks. She also believes that Lavacon is not the only one to use this tactic, and recommends the adoption of control measures additional to the City of Montreal.

The UPAC and the AMP have already been alerted, and the BIG intends to send them the folder.

Lavacon was replicated by way of a press release at the end of the afternoon Monday. “The contract to which it refers has not been the subject of inflated prices since it is a contract awarded and executed according to a fixed price agreed upon, and for which supplements are granted have also been in accordance with the flat fee negotiated”, said the company intends to consult with its attorneys. “The company […] intends to take all the means at its disposal to enforce its rights. “

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