Because of limited competition, Nova Scotians have been paying more than we should be for paving in certain areas of the province.
Ideal competitive bidding results when there are between six and eight bidders. As the number of bidders decreases, prices increase. In 2008 and 2009, 83 per cent of paving tenders in Nova Scotia had three or fewer bidders, and eighty-four of these tenders had two or fewer bidders. Thirteen paving projects only had one bidder. In fact, in those years one company did more than half of all paving work. As a result of this lack of competition, taxpayers have been paying too high a price in some parts of the province, which directly impacts the amount of paving that can be done.
A new asphalt plant and chip seal paving crews will help make sure we get as many kilometres as possible for the dollars taxpayers spend. We want to make sure we get a bigger bang for our buck in areas where competition is limited and bid prices are higher than average.
This initiative also builds on our current successful models for line painting and bridge work where some work is done by our own crews, resulting in more competition and lower costs for taxpayers.Chip Seal Paving Q&A