December 18, 2019
This week’s Supreme Court of Canada ruling to uphold reprisal clauses in tender documents has significant implications for mechanical contractors, and related trades, in BC and across the country. MCABC’s national organization, the Mechanical Contractors Association of Canada (MCAC), is a constituent member of the National Trade Contractors Association of Canada (NTCCC) which today issued the attached news release.
The clause used against J. Cote & Son Excavating by the City of Burnaby states that the City will not accept tenders from any party that is, or has been within the last two years, involved in legal proceedings initiated against the City arising out of a contract for works or services. This ruling has serious implications as it allows contractors to be placed on a two-year blacklist that bans them from bidding on city projects. It effectively means that there is no constitutional barrier for municipalities to use reprisal clauses at will, and leaves contractors having to decide between exercising their legal rights or having an equal opportunity to secure major contracts.
Are you involved in municipal work? Does this decision impact your company? Help us support you, write: firstname.lastname@example.org.