The evolution of Quebec's engineering sector after the corruption crisis

The corruption crisis that hit Quebec between 2009 and 2015 has left an indelible mark on the engineering sector. The revelations of the Charbonneau Commission brought to light systemic practices of collusion, resulting in a loss of public trust and major financial repercussions for large firms. Since then, the sector has been forced to reinvent itself by adopting more transparent, collaborative and innovation-oriented approaches.

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Transforming industry after the crisis

The crisis has led to a fragmentation of the industry, favoring the emergence of specialized small and medium-sized enterprises (SMEs). While large firms such as SNC-Lavalin and Dessau have seen their market share shrink, SMEs have gained in importance thanks to their flexibility and ability to respond to the specific needs of public and private projects. According to a report by the Ordre des ingénieurs du Québec (OIQ), in 2023 SMEs will account for almost 45 % of public contracts, compared with 25 % in 2010.

Diversification of services has also become essential to remain competitive. Companies are no longer limiting themselves to traditional engineering, but are integrating related services such as environmental assessment, risk management and 3D project modeling.


A stronger regulatory framework

Post-crisis legislative reforms have transformed the process of awarding public contracts. Law 1 on integrity, which came into force in 2012, imposes rigorous background checks on bidding companies and their executives. These regulations have led to a significant reduction in collusive practices and restored some of the public's trust.

In addition, Montreal's Office of the Inspector General (BIG) plays a key role in overseeing public projects, ensuring greater transparency. Since its creation, the BIG has conducted over 250 investigations, saving tens of millions of dollars by identifying fraudulent practices.


Impact on the structure of engineering projects

The crisis has also changed the way engineering projects are structured. Integrated approaches, such as the Design-Build method and public-private partnerships (PPPs), have become increasingly common. These models allow for closer collaboration between stakeholders, reducing the risk of cost and schedule overruns. For example, the Samuel-De Champlain Bridge, built under a PPP, was delivered on time and on budget despite its technical complexity.

Firms are also adopting disruptive technologies such as building information modeling (BIM) and artificial intelligence (AI). These tools improve planning, reduce errors and enhance transparency in project execution. However, their adoption remains limited: an OIQ survey reveals that only 50 % of Quebec companies are actively using BIM, highlighting a technological lag compared to other provinces.


Impact on risk management

The crisis has profoundly changed the perception of risk management in engineering projects. Firms must now not only anticipate operational risks, but also integrate robust strategies to avoid any suspicion of fraudulent practices. This has led to the creation of dedicated compliance departments within companies, as well as regular external audits to ensure transparency.

Insurance and performance guarantees have also become essential elements of engineering contracts. These measures help reassure customers and protect companies against potential litigation.


New players and increased competition

International firms have also taken advantage of this transition period to strengthen their presence in Quebec. Companies such as AECOM and Stantec have invested in strategic partnerships with local players, enabling them to win major contracts while respecting local integrity requirements.

This has also prompted Quebec firms to review their strategic positioning. For example, WSP Global has adopted an approach focused on sustainability and innovation, becoming a leader in green and technological projects. At the same time, companies specializing in specific niches, such as hydraulic infrastructures or renewable energies, are experiencing growing demand thanks to their unique expertise.

Conclusion:

A complete overhaul of practices and transformation of business models

The corruption crisis marked a turning point for the engineering sector in Quebec. Companies that have been able to adapt to new regulatory and technological requirements are now positioning themselves as leaders in an increasingly competitive market. However, the sector must continue to invest in innovation, training and risk management to meet customer and public expectations.