NNSL (Nov 12/97) - The NWT Construction Association is calling for more public tendering on government projects.

According to a survey by Treeline Planning Services Ltd., more than 45 per cent of GNWT contracts are either negotiated or sole-sourced rather than awarded through public tender.

Negotiated or sole-sourced awards are usually 10 to 25 per cent higher than similar projects tendered by competition, the association said.

If government awarded all construction works through public tender, it would save $25 million between now and division, the association said.

Tendering procedure was linked to a continuing decline in construction work. And the primary reason for the decline is cutbacks in capital spending by government.

Yellowknife South MLA Seamus Henry said in the legislature last month that capital spending has declined from about $200 million a few years ago to $110 million.

Capital spending cuts are the result of overspending in social services, the NWT Construction Association said. The association estimates construction cuts this year will lead to 1,000 lost jobs.