A property manager in Winnipeg is evaluating bids for a new snow removal contract for a residential apartment complex. One contractor offers a significantly lower price but has no formal insurance certificates on file, only a verbal assurance. What should the property manager do?

Question: A property manager in Winnipeg is evaluating bids for a new snow removal contract for a residential apartment complex. One contractor offers a significantly lower price but has no formal insurance certificates on file, only a verbal assurance. What should the property manager do?

Answer options: ✅ Reject the bid if formal proof of adequate commercial general liability insurance and WCB coverage cannot be provided immediately.

• Accept the bid, as the cost savings are substantial and verbal assurances are often sufficient.
• Ask the contractor to sign a waiver stating they are responsible for all incidents, without external insurance.
• Award the contract provisionally, allowing the contractor several months to obtain the necessary insurance.

Correct answer: Reject the bid if formal proof of adequate commercial general liability insurance and WCB coverage cannot be provided immediately.

Explanation: It is critical for property managers to ensure all contractors have valid and adequate insurance (Commercial General Liability) and worker's compensation coverage (WCB/WSIB) to protect the property owner from potential third-party claims or worker injury liabilities. Without this, the property owner could be held liable.