Submissions – Respond to calls for tenders with the appropriate RBQ license subclasses

This principle was reiterated by the Superior Court in the decision PE Pageau inc. vs. Quebec Society of Outdoor Establishments .

Short story

In February 2017, the Société des establishments de plein air du Québec (“Sépaq”) launched a call for tenders for the redevelopment of the entrance routes to Parc de la Chute-Montmorency.

The planned works also include the construction of three buildings for the new gatehouses.

In response, PE Pageau inc. (“Pageau”) submits the lowest bid.

However, Sépaq withdraws the tender on the grounds that the latter does not hold one or the other of the two licenses required for the construction of the proposed buildings, either the license of subclass 1.2 (Contractor in small buildings) or that of subclass 1.3 (Building contractor of all kinds).

PE Pageau inc. retorts that its subclass license  1.4 (Road and pipeline contractor) authorizes him to carry out all the work provided for in the call for tenders, since the building construction work constitutes work “similar or related” to those for which he holds a qualification. . PE Pageau inc. specifies that its intention is, in any case, to outsource the construction of these three buildings to a licensed contractor  1.2 or 1.3.

PE Pageau inc.  believes that the contract should have been awarded to him and is therefore claiming from Sépaq the profit it would have made if its bid had been accepted.

decision

The court concludes that Sépaq was right to refuse PE Pageau inc’s bid.  since the license  1.2 or 1.3 was mandatory for the execution of the work, in addition to the license  1.4 owned by PE Pageau inc.

In the court’s opinion, a contractor who does not have the appropriate license at the time of the submission of his tender does not have the legal capacity to enter into the contract which is the subject of the tender. It is moreover impossible to remedy this irregularity.

In addition, the court rejected the argument of PE Pageau inc.   requiring that building construction work be “similar or related” to work covered by the license  1.4, namely works relating to roads and public thoroughfares, sewers, aqueducts, pipelines, railway works and tunnels.

According to the court, works are not related simply because their performance is required under the terms of the contract between the contractor and the client. Indeed, related works are those that are underlying the main works or, at least, which are required to ensure or increase their functionality, quality or durability.

The court also rejected the argument of PE Pageau inc.   that the contract should have been awarded to him since he intended to outsource the construction of the buildings to a licensed subcontractor  1.2 or 1.3.

In the court’s opinion, the licensed contractor is only allowed to have construction work carried out.  included in its own license subclass. Thus, barring exceptions, a general contractor cannot subcontract any kind of construction work, but only those for which he holds a license.

In fact, a general contractor who subcontracts work that he is not himself authorized to organize, coordinate or perform under his license would not have the necessary knowledge to ensure that he is their quality.