Bill 16 - An Act to Amend the Crown Construction Contracts Act

BILL 16

An Act to Amend the Crown Construction Contracts Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 1 of the Crown Construction Contracts Act, chapter 105 of the Revised Statutes, 2014, is amended by adding the following definition in alphabetical order:

“non-routine capital project” means a non-recurring capital project or a capital project that is carried out at intervals of five years or more, but does not include an annual maintenance project. (projet d’immobilisation non courant)

2 Section 2 of the Act is repealed and the following is substituted:

Application

2( 1) Subject to subsection (2), this Act applies to every contract for the construction, repair or alteration of land or structures owned or administered by the Crown.

2( 2) This Act does not apply to any contract in connection with

(a) a non-routine capital project of the New Brunswick Power Corporation, carried out alone or with other parties, that has been approved by the New Brunswick Power Corporation’s Board of Directors, or

(b) an energy infrastructure project of any entity in which, directly or indirectly, the Crown holds an interest.

3 The Act is amended by adding after section 2 the following:

Forms

2.1( 1) A contract to which this Act and the regulations apply

(a) shall be made in the Short Form Contract or the Standard Construction Contract, if the amount of the accepted tender does not exceed the amount prescribed by regulation, or

(b) shall be made in the Standard Construction Contract, if the amount of the accepted tender is greater than the amount prescribed by regulation.

2.1( 2) With the approval of the Treasury Board, the Minister of Transportation and Infrastructure may prescribe the form and content of the Short Form Contract and the Standard Construction Contract, which may vary according to the class of contracts.

2.1( 3) The Minister of Transportation and Infrastructure shall cause the Short Form Contract and the Standard Construction Contract to be made available to the public in the form and the manner that he or she considers appropriate.

2.1( 4) In the Short Form Contract or the Standard Construction Contract, the Crown may collect personal information either directly from an individual to whom the information relates or indirectly from another person.

2.1( 5) The Regulations Act does not apply to the form and content of the Short Form Contract and the Standard Construction Contract.

2.1( 6) If there is a conflict or an inconsistency between the Short Form Contract or the Standard Construction Contract and this Act or any regulation made under this Act, this Act or the regulation made under this Act prevails.

Machinery rental rates

2.2( 1) With the approval of the Treasury Board, the Minister of Transportation and Infrastructure may prescribe machinery rental rates.

2.2( 2) The Minister of Transportation and Infrastructure shall cause the machinery rental rates to be made available to the public in the form and the manner that he or she considers appropriate.

2.2( 3) The Regulations Act does not apply to the machinery rental rates.

2.2( 4) Subject to subsection (6), the machinery rental rates apply to all contracts to which this Act and the regulations apply.

2.2( 5) When equipment is rented on an operated basis, the operator’s wages, calculated in the manner prescribed by regulation, shall be added to the rental cost.

2.2( 6) In case of an emergency which endangers the health or safety of the public, the Crown may negotiate a machinery rental rate necessary to carry out the work.

4 The Act is amended by adding after section 7 the following:

Performance bonds and payment bonds – standard terms and conditions

7.1( 1) This section applies to performance bonds and payment bonds furnished to the Crown in relation to a contract administered on behalf of the Crown by the Minister of Transportation and Infrastructure.

7.1( 2) The Minister of Transportation and Infrastructure may prescribe standard terms and conditions not inconsistent with this Act or the regulations that are to be included in performance bonds and payment bonds.

7.1( 3) The standard terms and conditions may vary according to the type of bond or the class of the contract to which the bond relates.

7.1( 4) The Minister of Transportation and Infrastructure shall, on behalf of the Crown, refuse to accept any performance bond or payment bond that does not include the standard terms and conditions.

7.1( 5) The Minister of Transportation and Infrastructure shall cause the standard terms and conditions to be made available to the public in the form and the manner that he or she considers appropriate.

7.1( 6) The Regulations Act does not apply to the standard terms and conditions.

5 Section 8 of the Act is amended

(a) by adding after paragraph (e) the following:

(e.1) prescribing an amount for the purposes of subsection 2.1(1);

(e.2) prescribing procedures to be followed in negotiating or awarding contracts;

(e.3) respecting the negotiation of contracts following a tender opening;

(e.4) prescribing the manner of calculating an operator’s wages for the purposes of subsection 2.2(5);

(b) by repealing paragraph (f).

CONSEQUENTIAL AMENDMENT AND COMMENCEMENT

Regulation under the Crown Construction Contracts Act

6 Section 3 of New Brunswick Regulation 82-109 under the Crown Construction Contracts Act is amended

(a) by renumbering the section as subsection 3(1);

(b) in subsection (1) by striking out “This Regulation” and substituting “Subject to subsection (2), this Regulation”;

3( 2) This Regulation does not apply to any contract in connection with

(b) an energy infrastructure project of any entity in which, directly or indirectly, the Crown holds an interest.

Commencement

7 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.