Surrey council to vote on $9.5M pact with private contractors

Surrey to vote on $9.5M contractor agreement

The proposed Surrey council $9.5M agreement with private contractors would extend the city’s Hired Equipment Program for another year. Under the plan, 40 private firms would be pre-approved to provide gear and crews when city equipment is fully booked.

Engineering general manager Scott Neuman says the goal is to maintain service levels while giving Surrey flexibility for peak work periods and emergencies. The $9.5 million figure represents the maximum value of work that could be assigned over the year, not a guaranteed payout to contractors.

How the hired equipment program works

Neuman stresses that city-owned machines go out first. Staff only call in hired equipment after they fully deploy municipal trucks and crews. This system, he argues, protects taxpayers by ensuring Surrey uses its own fleet before turning to the private sector.

Typical equipment available under the program includes tandem dump trucks, backhoes, excavators, sweepers, mowers, vacuum trucks and crane trucks. These units help with everything from snow and ice operations to road work, ditching, parks maintenance and emergency response.

Cost control and contractor priority

The Surrey council $9.5M agreement with private contractors also sets clear rules on price. When staff schedule outside help, they start with the contractor offering the lowest hourly rate. If that firm is busy, staff move to the next lowest bidder and weigh whether the work can wait until the cheaper option is available.

Neuman says this ranking system aims to deliver “best value for the City” by matching jobs with the most affordable provider available at the time. Contractors, meanwhile, gain quicker access to city work but no guaranteed hours, which keeps financial risk with the private firms rather than city hall.

Rising and falling rates for 2026

The report notes that Surrey usually spends about $8.4 million a year through the Hired Equipment Program. That sits slightly below the new ceiling council will consider but still represents a major line item in the city’s operating budget.

A review of 2026 bid rates shows a mixed picture. Some equipment rates climbed by up to six per cent compared to 2025, while others dropped by as much as nine per cent. City staff say pre-approving a group of 40 contractors helps them balance those shifts and keep pressure on prices through competition.

What’s next for Surrey council

If council endorses the Surrey council $9.5M agreement with private contractors, staff will have authority to call on the list of firms for the rest of the year. That would cover routine projects as well as unexpected events such as storms, floods or major infrastructure failures.

If councillors push back or seek changes, the decision could be delayed and staff may have to rely more heavily on the existing fleet in the short term. Either way, the debate will highlight a key question for Surrey residents: how much of the city’s day‑to‑day work should be handled in-house and how much should be contracted out to private operators.

Stay updated instantly — follow us on Instagram | Facebook | X