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Manitoba Infrastructure rewriting ring dike closure tenders

Tenders for ring dike closures this spring will include new approaches for stand-by and mobilization, as a result of feedback from the heavy construction industry last year.

MHCA representatives met with Manitoba Infrastructure officials last week, in preparation for advertising tenders this spring, well in advance of potential flooding on the Red River. MI has moved to a bid-hourly approach for these contracts, with new considerations to compensate for stand-by and mobilization.

Last year, contractors were required to mobilize and be on-site at a certain date for ring dike closures. The expected flood date occurred much later than anticipated, resulting in equipment being held idle at site for extended periods, without fair compensation.

This year’s tenders for ring-dike closures will pay a stand-by rate for mobilized equipment at 50% of the unit bid rate for mobilized equipment for the hours it must be available, but not physically working during a 24-hour period.

Mobilization will be paid at the hourly bid rate of the piece of equipment for transport to the jobsite from the contractor’s headquarters, only while mobilizing within the advertising Water Management & Structures District boundary.

Industry representatives at the meeting suggested MI also require rating equipment (type, age, size) to ensure equipment mobilized is adequate to the nature of the job, given the immediacy of work to close dikes. 

Further, MI was encouraged to advertise spring and fall tenders separately, to ensure competitive bids for both season’s work.

Stand by will not be paid for dike closure removal, clean up and remediation and no payment will be made for demobilization.

MI committed to present the draft tender advertisement to industry prior to posting.