Starting on December 6, 2013, any company that wishes to obtain a public contract or subcontract with a value of $10 million or over must hold an authorization from the Autorité des marchés financiers (AMF). This requirement applies to construction, service and public-private partnership contracts and subcontracts. The announcement was made on November 6, 2013, in the Gazette officielle du Québec.
This measure is associated with the Integrity in Public Contracts Act adopted by the Quebec National Assembly in December 2012. The Act, which is widely referred to as "Bill 1," created a system to ensure the integrity of companies even before they can tender for or enter into public contracts. Initially, authorization was required only for construction and service contracts and subcontracts involving an expense of $40 million or more. That threshold has now been reduced to $10 million.
Certain contracts of the City of Montreal
Since Bill 1 was adopted, 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 contracts. The complete list of orders in council is available on the AMF's website.
Registration in the RENA
We remind our readers that if the AMF rejects a company's application for an authorization, the company will automatically be listed in the Register of enterprises ineligible for public contracts (RENA). The company will then have to stop working on public contracts already underway and will not be eligible for any new public contracts for a fixed period.
Online application
It should also be noted that, starting on November 18, 2013, Quebec companies that wish to apply for an authorization from the AMF will be required to do so online. Until then, applications may be sent by mail using the form provided on the AMF's website.
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global legal practice. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.
Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is a separate legal entity, are members ('the Norton Rose Fulbright members') of Norton Rose Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the activities of the Norton Rose Fulbright members but does not itself provide legal services to clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
