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Global firm lands $190M-a-year contract to manage B.C. government’s real estate

CBRE, a worldwide commercial real estate firm, will provide maintenance, janitorial and construction services at courthouses, correctional facilities and government buildings throughout province
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CBRE Ltd., a global commercial real estate firm with 480 offices worldwide, has landed a massive contract to take care of the B.C. government’s buildings, the Province of British Columbia and CBRE announced July 8.

The five-year contract, which starts in April 2020, is valued at a total $190 million a year, which includes the costs of repair, maintenance and construction projects. It also allows for two optional five-year renewals. 

Under the deal, the company will provide “repairs, maintenance, landscaping, janitorial and construction services at government facilities, such as courthouses, warehouses, correctional centres and government office buildings throughout the province,” according to a press release from the province. 

A spokesperson from the Ministry of Citizens’ Services said much of which will be outsourced and subcontracted to smaller firms as it is such a large scope of work. CBRE will not earn the full $190 million a year, but will manage all the projects.

The province said in the release, “The tender process considered factors such as environmental responsibility, best value for money, social benefits and impacts to people and businesses.”

Sunny Dhaliwal, assistant deputy minister, Real Property Division, Ministry of Citizens’ Services, said in a statement, “The goal of our bid process was to identify a service provider to deliver services that align with our key government priorities, like our Clean BC Government Buildings Program. This new agreement will ensure British Columbians get the best value for money, provides social benefits to people and businesses, and creates good-paying jobs while improving the condition and performance of our buildings.”

Ryan Clayton, senior managing director of CBRE’s Global Workplace Solutions business, which provides commercial property management and related services, said, “We are looking forward to this long-term partnership with the Province of British Columbia’s Real Property Division to serve the public servants and citizens of British Columbia. CBRE’s culture and foundational values promoting inclusion and supply chain diversity align extremely well with the Province’s strategic objectives and guiding principles.”

Correction: An earlier version of this story erroneously read that the contract will earn CBRE $190 million a year. The $190 million figure is the value of the total annual contract, including subcontracting fees and repair, maintenance and construction costs. We apologize for the error.