Source: Government of Canada News (2)
Ottawa, July 14, 2025
The Office of the Procurement Ombud (OPO) released a new research study under its Knowledge Deepening and Sharing initiative, examining recurring issues related to the administration of federal construction contracts.
Over the past few years, OPO received numerous complaints from procurement stakeholders about issues related to the administration of federal construction contracts. OPO launched this research study to identify the underlying causes of these issues and to provide practical recommendations for improving contract administration practices.
Some of the common issues raised include poorly defined scopes of work, inconsistent use of standard contract documents and a lack of clarity and effectiveness of substantial performance clauses and inadequate dispute resolution mechanisms. These issues disproportionately affect small and medium-sized enterprises (SMEs), often leading to project delays, cost overruns, and disputes. Ultimately, they undermine the fairness and efficiency of federal construction projects and jeopardize the achievement of best value for Canadian taxpayers.
Contract administration plays a critical role in preserving the value established during the contract award process. Effective administration ensures proper stewardship of taxpayer dollars and helps deliver the infrastructure Canadians rely on—on time and on budget.
As the only federal organisation mandated to investigate and mediate issues related to the administration of construction contracts, OPO is encouraging federal departments and suppliers to use its Alternative Dispute Resolution (ADR) services. These services offer a timely, cost-effective way to resolve disputes early and keep construction projects on track.