Other high-profile firms named in commission testimony have also regained certification to vie for public-works contracts in Quebec—including engineers SNC-Lavalin and WSP Global (formerly Genivar) in Montreal—but have pushed into projects and markets well beyond the province.
For SNC-Lavalin, a new core of executives have had to cope with fallout from corruption issues locally and abroad as the firm competes for new revenue while it revamps its management ranks and global ethics standards.
Former CEO Pierre Duhaime, who resigned in 2012, faces a preliminary hearing early next year on charges of fraud, conspiracy and using forged documents to secure a role on the construction of the McGill University Health Center in Montreal.
SNC-Lavalin, now run by former CH2M Hill executive Robert Card, remains on the $1.4-billion project, although other allegedly linked executives are no longer employed and also face legal action. The project is set to finish by year-end.
The firm now sees the transparency-demanding market as a tougher ethics regulator.
"The market—our clients—want assurances as to what we've done to eradicate the problem, and we know because we've been talking with them," says David G. Wilkins, named SNC-Lavalin's chief ethics officer on June 1 and a former ethics director at Dow Chemical. "Developing integrity management systems is smart business because markets are demanding that companies play and compete fairly. From this, we want an ethics program at the forefront of engineering and construction companies."
The Charbonneau panel now will spend the next two months hearing recommendations on new rules and changed practices in municipal work in Quebec before submitting a final report in April.
Impact on Small Firms?
But some in industry speculate how procurement reform will impact smaller firms.
"My worry is that there are going to be mandates for integrity management systems adopted that will be written with large corporations in mind," says John Gamble, president of Canada's Association of Consulting Engineers. "I would hate to see small and medium-size firms not able to get work because they have to comply with mandates that aren't relevant."
Gamble says he expects Canada to adopt "competitive selection" legislation as a result of the commission's findings and recommendations.
He points to a new program of qualifications-based selection rules now under development for public-sector professional services but laments they were not done sooner and remain voluntary, unlike in the U.S. Says Gamble, "My heart is heavy that we didn't do this 10, 20 years ago."
Gamble also joins other observers of the corruption hearings in criticizing the panel for not calling more high-ranking politicians and public officials to testify.
"The corruption is not entirely on the supply side," he says. "You can't fix the problem only looking at one side of the equation."
Whatever changes are made, industry focus on Quebec should grow, observers believe.
"Assuming that the Quebec construction inquiry uncertainty fades over the coming 12-24 months, it should be no surprise that Quebec firms find themselves on M&A radar of international players and companies," says Dundee analyst Sytchev.
