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Unfair Bidding for Construction Contracts Costs Toronto Millions

Cardus’s research brief, Better Choices for Toronto, outlines how Toronto could save $347 million by reducing its infrastructure construction costs, even while maintaining its current pace of construction. All Toronto needs to do is to open construction contract bidding to all qualified builders.

Right now, that’s not what happens. Toronto is the only city in Ontario that restricts bidding on construction contracts to companies whose workers belong to a select group of favoured unions. If workers belong to a different union, or they’re non-unionized, their employer can’t bid. Fewer bidders means less competition, which leads to higher prices. Radio host Jerry Agar picked up on this research as Toronto city councillors start thinking about the 2025 city budget. Listen to his comments below.

October 28, 2024

Why does Toronto insist on paying more for its construction projects, when Cardus research has shown that fair and open bidding would save hundreds of millions of dollars?