5 days ago
SAAQclic: Cost overruns possibly a ‘small detail' overlooked
Monitors are seen in the courtroom of the Gallant Commission, a public inquiry into the failures of the Société de l'assurance automobile du Québec's platform, SAAQclic, in Montreal on Thursday, Apr 24, 2025. (Christinne Muschi/The Canadian Press)
It is 'quite possible' that the Société de l'assurance automobile du Québec (SAAQ) failed, at the time of the call for tenders, to consider a scenario in which its digital transformation budget was completely exhausted, according to testimony from a former strategic advisor.
On Wednesday, the Gallant commission examined how the call for tenders was developed to find the consortium tasked with creating the SAAQclic platform.
It heard from individuals who supported the Crown corporation during that process.
Madeleine Chagnon, an external strategic advisor hired for the project, found herself defending what the SAAQ had included in the tender documents in case of cost overruns beyond the initial budget envelope.
Chagnon pointed to a risk-sharing clause that outlined certain mechanisms, including potential rate reductions and the option to draw from savings achieved by completing parts of the project more efficiently than expected.
She also mentioned a contingency — a percentage of the original budget set aside for unforeseen issues.
Commission lawyer Vincent Ranger pressed Chagnon on what had been planned in the event all those funds were used up.
'I think that behind these big ideas of risk-sharing and innovation, a small detail may have been forgotten in the original call for tenders — namely, what would happen in the event of cost overruns. Is that possible?' the lawyer asked.
'We added the concept of zero additional costs and, afterwards, look — maybe. I can't tell you no. It's possible, quite possible,' Chagnon replied.
Ranger then presented a document showing questions submitted by potential suppliers during the tendering process. One of them asked how cost overruns would be handled if the entire contingency amount was spent.
The response was that it was a 'risk that must be managed,' and that the phased approach to the project 'would help anticipate that type of situation.'
It was also noted that the SAAQ did not foresee 'any increase to the budget envelope' and that 'should that envelope be exceeded,' the corporation 'may terminate the business relationship.'
The SAAQ's tech modernization project could cost at least $1.1 billion by 2027 — $500 million more than originally planned, according to calculations by the Auditor General.
This report by The Canadian Press was first published in French June 4, 2025.
