Road contractors in the Canadian province of Alberta are demanding tenders be conducted for maintenance contracts that are currently run by Carillion, now in receivership.
Carillion, based in the UK, went into receivership in January, and its Canadian operations did so as well, around a week later.
The call for tenders in Alberta arose when the Alberta Roadbuilders and Heavy Construction Association learned that more than US$380 million worth of road contracts are likely to be handed over to Emcon, a highways contractor based in the neighbouring province of British Columbia. The association says Alberta firms should be given a chance to bid for the work.
“We have nothing against competition coming in from another province. An open [bidding] process, that’s all we wanted to see come out of this,” Ron Glen, head of the roadbuilders association, reportedly said.
Carillion Canada holds three of eight of Alberta’s highway maintenance contracts amounting to around 43% of contracted work in the province. Emcon Services stands to take over the work within the next four to five years.
Emcon president Frank Rizzardo has said his firm stands ready to take up the work pending a ruling from a bankruptcy judge, likely this month. But “nothing is final”, he said.
In March, the province said it was going to pay Carillion Canada another $6.8 million to ensure it can pay its supply chain partners and subcontractors in order for it to meet its road maintenance obligations.
Carillion Canada is said to control more than 300 snowplows, around half of all Alberta showploughs. It employs about 300 workers during the winter and up to 500 in summer.
