Contractors upset with preferential treatment
Published Tuesday June 30th, 2009
Letter of the day
To The Editor:
The following letter has been sent to Premier Shawn Graham on behalf of the Moncton Northeast Construction Association:
Dear Premier Graham,
The Moncton Northeast Construction Association is the largest construction association in New Brunswick serving nearly 350 members. These members are primarily located in the eastern counties of New Brunswick stretching from Albert/Westmorland counties in the south, to Restigouche County in the north. Those firms provide services in the construction sector not only in New Brunswick, but in many cases to all of Atlantic Canada.
It is most unfortunate that Atcon Construction finds itself in a financial dilemma.
However, one would not have to look too far to find other contracting firms facing the same challenges relative to their volume of work. Even those that are not financially challenged would benefit immensely from a provincially-backed loan guarantee making it easier to manage cash flow as well as to leverage higher bonding limits.
Atcon Construction is not the only construction firm in New Brunswick to have penetrated the Western Canadian market. Restricting them from bidding on provincial contracts does not level the playing field to any degree as they admit to it being only four per cent of their volume. They are not restricted from bidding on private contracts in New Brunswick, nor are they restricted in bidding on any projects throughout the Atlantic region, a market where many New Brunswick contractors operate.
The construction sector is one of the most volatile sectors in our economy. It is also one of the most competitive, with projects bid on the smallest of margins. The risk in operating in this sector is great. We are, therefore, deeply concerned that your government has singled out and has provided one contractor in this province with this preferential financial treatment.
Steve Harrison,
President,
Moncton Northeast Construction Association
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