Public Bids: What Every Entrepreneur Need to Know Before Submitting a Bid

Contracting Authorization: Which Contracts Are Covered, and How Long Is It Valid? 

Keep in mind that authorization to contract from the Autorité des marchés publics (AMP) is mandatory for some types of contracts. The applicable threshold for any construction contract or subcontract, or public-private partnership (PPP) contract, is $5 million. Contractors often overlook the requirement for this authorization when it comes to subcontracts. 

For service contracts or subcontracts entered into following a call for tenders or awarded by private agreement, the threshold is $1 million. Prior to April 2024, the thresholds were different for contracts awarded by the City of Montréal, but this is no longer the case. 

These amounts include any options that may be provided for in the contract, in accordance with Section 21.17 of the Act respecting contracting by public bodies (A.c.p.b.). Therefore, if your base contract is below the threshold but the options included bring the total above it, authorization is required.. Therefore, if your base contract is below the threshold but the options included bring the total above it, authorization is required. 

The authorization used to be valid for five years but since April 2, 2026, its duration is indefinite. This simplifies administrative management. However, a yearly update remains mandatory. To avoid losing your authorization to enter into contracts, be sure to include this annual reminder in your processes. 

Eligibility and Compliance of a Bid: What Are the Differences? 

When it comes to public bidding, the golden rule is to always read the bidding documents very carefully. These documents will provide the roadmap to follow and identify mandatory documents and information without which the bid will be rejected. 

What Is Bid Eligibility? 

Eligibility means the ability to bid and win a contract. Failure to meet the eligibility requirements set forth in the bidding documents results in automatic rejection. 

• Examples of eligibility criteria include:  
• certification from Revenu Québec;  
• authorization to contract from the AMP;  
• not being listed in the Register of enterprises ineligible for public contracts (RENA);  
• holding an RBQ license. 

What Is Bid Compliance? 

Compliance, however, is more nuanced. Depending on the circumstances, a corrected bid may be allowed, but non-compliance may also result in automatic rejection of the bid. 

Where there is a minor irregularity, the public body may allow the bidder to make a correction, but this will not be the case for a major irregularity.  

Regardless, any decision made by the public body must ensure equality among bidders. Consequently, a correction authorized by the public body may never affect the price or any substantive requirement of the call for tenders. 

Bid Rejection: Understanding Major and Minor Irregularities 

What Irregularities Result in the Automatic Rejection of a Bid? 

In case law, these examples have been found to constitute major irregularities leading to the rejection of a bid: 

Failure to meet the exact deadline for submitting the bid; even a delay of only a few minutes can be fatal. 

• Missing signature on the bid or on the required forms. 
• Failure to include required disclosures, such as those related to lobbying. 
• Failure to provide the required financial guarantees or insurance. 
• Failure to meet a requirement specifically stated as grounds for rejection of the bid.  
• Failure to provide a list of subcontractors when requested.  
• Failure to take into account all published addenda. 
• Failure to comply with the product equivalence recognition process. 

What Irregularities Can Be Corrected After a Bid Is Submitted? 

Fortunately, not all deficiencies are fatal. Below are some irregularities that the courts have deemed minor and eligible for correction:  

• Depending on the wording of the bidding documents, failure to own equipment at the time of submitting a bid may be tolerated if it does not call into question whether the equipment will be available when the contract is performed. 
• Failure to comply with bidding format requirements may be considered a minor irregularity, provided there is no automatic rejection clause. 
• Submitting a bid for only one of the options specified in the call for tenders may also be allowed if this was provided for in the bidding documents. 
• Subsourcing part of the services to a subcontractor may be allowed if the call for tenders does not prohibit subcontracting. 

Other Rules to Know Before Bidding on a Public Tender 

Here are a few other important reminders about bidding on a public tender. 

• Communications with members of a selection committee are prohibited. Doing so constitutes a criminal offence that results in ineligibility for public contracts (Section 21.4 of the A.c.p.b.). The rule is simple: only communicate with the person responsible for the bid process as indicated in the bid documents. 
• When an addendum affects the price, it must be provided at least 7 days before the bid opening date; otherwise, that date must be postponed. 
• There is a complaint filing process for targeted tenders: complaints must first be filed with the public body, and then with the AMP (Section 21.0.4 of the A.c.p.b and Section 37 of the Act respecting the Autorité des marchés publics (A.a.m.p.). A complaint may also be filed directly with the AMP regarding the award process (Section 39 and following of the A.a.m.p.). 

Need Assistance with a Public Procurement Process?

This article is part of our comprehensive public procurement law report, bringing together the insights of our professionals to help organizations navigate the evolving legal framework governing public contracts, anticipate legislative changes, and strengthen their public tendering strategies.