Toronto residents are paying far too much for local infrastructure projects — from new libraries to community centres. Why? Because Toronto is the only municipality in Ontario that does not allow a fully competitive bidding process on construction projects funded by your tax dollars.
Open tendering means more bidders, more skilled labour, better competition, and better value for taxpayers. When competition increases, more of the projects Toronto residents need actually get built.
The Problem Right now, only contractors affiliated with select U.S.-based building trade unions can bid on industrial, commercial, and institutional (ICI) construction work in Toronto. That shuts out qualified local companies whose workers may belong to a different union — or no union at all.
Less competition means higher costs. And Toronto taxpayers are the ones footing the bill.
The Cost of Closed Tendering Independent research shows Toronto could save $347 million every year by opening up the bidding process. That’s money that could go toward fixing aging infrastructure, building more housing, improving transit, or simply easing the burden on property taxpayers.
Meanwhile, Toronto’s property taxes have increased by 25% in just three years, even as the city’s repair backlog continues to grow.
Proof It Works
In 2019 the Region of Waterloo, Hamilton, and Sault Ste. Marie all adopted open tendering – and the City of Toronto said ‘NO.’ Now, they’re saving millions annually, and reaping the benefits of local contractors and workers building their projects. Waterloo Region alone is saving $24 million every year.
More Competition = Better Quality Open tendering does not weaken Toronto’s fair wage policies or community benefits initiatives. Contractors would still have to meet the city’s rigorous standards for quality and safety. The only difference? More competition, lower costs, and more projects getting built.
It’s time for Toronto to adopt fair and open procurement. Taxpayers deserve better value — and a city that invests in more of the services and infrastructure we all rely on.
To:
Councillor in Toronto
(dependent on postal code)
Olivia Chow <Mayor of Toronto>
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