New Report on Qualifications-Based Selection Advocates for Change in Canadian Engineering Practices

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A recent report on Qualifications-Based Selection (QBS) presented at the Global Infrastructure Conference supports the push for its adoption in Canada, highlighting its benefits over price-led selection methods.

Advocates representing Canada’s consulting engineers are rallying around a significant report on Qualifications-Based Selection (QBS) that was unveiled at the Global Infrastructure Conference held in New Delhi. The report, entitled Qualifications-Based Selection – A FIDIC Paper, was published in September by the International Federation of Consulting Engineers (FIDIC). It asserts that projects procured through QBS consistently outperform those selected based on price, yielding a 50% increased likelihood of meeting construction milestones.
"While design and consultancy fees typically account for just one to two percent of an infrastructure asset’s total lifetime cost, the decisions made during this phase influence the majority of costs that arise afterward," the report notes. This finding is particularly relevant in the Canadian context, according to John Gamble, president and CEO of the Association of Consulting Engineering Companies–Canada (ACEC), and Sandro Perruzza, CEO of the Ontario Society of Professional Engineers (OSPE). They emphasize that engineering stakeholders have intensified their efforts to persuade project owners that basing consultant selection on price is misguided.
Earlier this year, the City of Toronto made headlines by announcing its adoption of QBS for design services. This decision marks a shift toward evaluating consultants based on qualifications such as expertise, experience, and the quality of their proposed methodologies. The OSPE commended this initiative, with Perruzza stating, "It is imperative for the province to advance in this direction, and we have initiated discussions with them."
As more regions adopt QBS, the increasing amount of data supporting its efficacy grows, underscoring the need for jurisdictions that have yet to embrace it to reconsider their practices. The OSPE has produced its own research report advocating for QBS and has made calls to mandate its utilization in budget submissions and legislative comments. They have also engaged with provincial ministers across various sectors.
In response to inquiries, Brian Buchan, vice-president of communications at Infrastructure Ontario, stated, "Infrastructure Ontario employs a total value procurement strategy to ensure that projects yield quality outcomes at the best value for the public. Proponents must first demonstrate their ability to meet the project's technical requirements before their financial proposals are evaluated."
Looking back, Ontario’s regional transit agency, Metrolinx, piloted QBS as early as 2014, utilizing it for two engineering-services procurements, including the GO rail electrification project. In the years since, Quebec, British Columbia, and the City of Calgary have all implemented policies that favor QBS. According to Gamble, the federal government has shown interest in adopting QBS more widely, having announced a pilot project before the COVID-19 pandemic interrupted progress. They have also indicated a willingness to explore collaborative approaches like progressive design-build and alliance contracts, which share similarities with QBS for more complex projects.
However, Gamble pointed out that QBS is currently not a priority for the federal government, which is primarily focused on major projects. He remarked, "We also need to see a broader acceptance of QBS for more conventional projects that will continue to be delivered through the design-bid-build model. This represents a significant opportunity."
In terms of global trends, the United States has taken the lead in promoting QBS, as highlighted in the FIDIC report. It features case studies, including one from Greenville, North Carolina, where QBS facilitated an innovative $33 million stormwater solution that would not have emerged from a low-bid process. The report also revealed that owner satisfaction on QBS projects is at 89%, with these projects being 23% more likely to produce innovative outcomes.
FIDIC president Alfredo Ingletti stated, "The infrastructure we construct in the coming decade will determine quality of life, resilience, and sustainability for future generations. Selecting the right consulting engineer is not merely a cost to be minimized; it is the crucial decision that dictates the success or failure of that infrastructure."
In September, the OSPE organized a conference in Toronto titled Elevating the Value of Engineering, where representatives from various organizations, such as Metrolinx, Bruce Power, and the City of Vaughan, discussed different procurement models. Perruzza noted that QBS emerged as a preferred model among project owners during these discussions. He cautioned that if Ontario fails to adopt QBS, it risks losing talented professionals to other jurisdictions. "If Ontario isn’t willing to compensate me fairly for my expertise and design, then top design firms and skilled engineers will seek opportunities elsewhere, which ultimately harms our local industry," he concluded.

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