As of October 24, 2014, enterprises wishing to be awarded public
contracts and subcontracts worth $5 million or more will have to
hold an authorization from the Autorité des marchés
financiers (AMF). This requirement applies to construction, service
and public-private partnership contracts and subcontracts.
Ministers Martin Coiteux, Pierre Moreau and Robert Poëti made
the announcement in a press release on September 16, 2014.
This measure stems from the Integrity in Public Contracts
Act passed by the Quebec National Assembly in December 2012.
The Act, commonly known as "Bill 1," created a system
designed to ascertain the integrity of enterprises prior to their
being able to tender for or enter into public contracts. Initially,
authorization was only required for construction and service
contracts involving an expenditure of $40 million or more. The
threshold was lowered to $10 million in December 2013 and will be
reduced to $5 million as of October 24, 2014.
Certain contracts of the City of Montreal
Since Bill 1 was passed, the Quebec Government has issued
several orders-in-council extending the legislation to certain
contracts of the City of Montreal. In particular, an
order-in-council that came into force on October 23, 2013, covers
all contracts for the construction, reconstruction, demolition,
repair or renovation of the City of Montreal's roads,
waterworks and sewer services that involve expenditures of $100,000
or more and for which the award process was underway on or began
after October 23, as well as subcontracts of the same nature that
are directly or indirectly related to such contracts and that
involve an expenditure of $25,000 or more. Eight other
orders-in-council have been made that extend the AMF authorization
process to the City of Montreal, regardless of the value of the
As of September 24, 2014, new categories of City of Montreal
contracts with a value of more than $100,000 will also be subject
to the requirement to hold an AMF authorization. This
order-in-council will apply to contracts for the supply of asphalt.
Up to now, only construction and service contracts and subcontracts
have been subject to the requirement. Bringing certain supply
contracts within its scope is in keeping with the government's
wish to extend the requirement to all public contracts subject to
Bill 1, including contracts for the purchase or leasing of movable
Registration in the register of enterprises ineligible for
public contracts (RENA)
We remind our readers that if the AMF rejects an
enterprise's application for an authorization, the enterprise
will automatically be listed in the register of enterprises
ineligible for public contracts (RENA). The enterprise will then
have to stop working on public contracts already underway and will
not be eligible for any new public contracts for a fixed
Since November 18, 2013, Quebec enterprises wishing to apply for
an authorization from the AMF have been required to do so
For more information about the Integrity in Public Contracts
Act, please consult our previous
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