3.3.4. Tension Resolution

BIM projects necessitate the inclusion of SMEs, manufacturers and specialist contractors in early design stages, but not at the expense of fairness. The only way to assess firms' skills, capacities and maturity regarding BIM, such as prefabrication companies, remains the RFQ process, which requires time and money both for public bodies and tenderers, and which is based on non-standardized quality criteria rather than BIM-specific indicators.

Including a standardized questionnaire, such as the UK's PAS 91:2013, in the prequalification mechanism would reduce legal uncertainties and allow the evaluation of BIM capability, notably the interoperability of software and models, process harmonization and staff training, while still preserving fairness (British Standards Institution 2013). A standardized questionnaire, which focuses on physical resources and processes, should be complemented with the evaluation of softer factors such as behavioural attributes and collaborative attitudes, since these factors influence BIM delivery success (Mahamadu et al. 2017). Interviews with prospective team members and sample problems relating to BIM would serve this purpose. The questionnaire could also give the public sector quality information on the capacity and maturity of the market, and firms could adjust their practices to those implemented in public projects.

The use of IPD would allow the integration of specialized contractors and manufacturers upstream of the project while including them in team alignment and contract negotiation workshops (IPDA 2018). It is necessary to include the right people in the project team before their tasks are to be performed, hence the importance of the presence of specialist contractors and manufacturers early in the process to notably help with the development of the target cost (Zimina et al. 2012).

## **4. Enabling Risk and Reward Sharing**

This section addresses Quebec's rules applicable to risk–reward allocation mechanisms, notably through remuneration regulations, intellectual property, stipends, liability and insurance. We argue that legislation, regulations and contracts should move from risk–reward allocation to a risk–reward sharing paradigm.

## *4.1. Sharing Risks*

The construction contracts regulation provides compensation for tenderers when the selection process is canceled. Tenderers' compensation is CAD 5000 for projects with a value greater than CAD 1 million. Quebec's latest alternative delivery methods RFQ and RFP documents diverge from this regulatory standpoint by offering significantly larger stipends to unsuccessful but compliant tenderers, thus indicating the use of the derogation procedure.

In traditional delivery methods, the public sector is notably responsible for planning, design, operation, maintenance, financial and legal risks, while the private contractor is mainly responsible for execution of the works. Alternative delivery methods transfer a larger share of the risk to the private sector. Subject to the public body's risk transferring decisions as negotiated in the selection process, Quebec's contractual documents state that contractors are notably responsible for permits and authorizations, design, construction, respect of costs and schedule, insurance and project management.

Insurances include a construction all risks insurance, which provides protection against loss or damage regarding works, equipment and machinery and third-party claims for property damage or bodily injury. Contractors in DB projects must also take a wrap-up

liability policy as well as professional liability to cover losses resulting from any error or omission in design and construction. Contractors also need performance bonds to cover their contractual obligations, as well as a labor and material payment bond to ensure the payment of subcontractors and suppliers for their work and the material they supply. Finally, a parent company guarantee might be necessary to protect the client in the event of a contractor's default.

## 4.1.1. Functions of Current Rules

Regulatory stipends ensure light compensation for firms participating in a canceled selection process while stipends provided through the derogation procedure aim to share the financial risks associated with propositions development. Public bodies aim for the optimal risk transfer to the private sector by pegging risks to the party best positioned to manage it. Insurance, to protect the insured against claims, and liabilities, to protect losses incurred by third parties, enable risk distribution and contingency provisions. Performance bonds guarantee against the failure of the other party to meet contractual obligations and ensure claims against the other party in the case of default.
