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A new program will help ensure that provincial infrastructure projects are delivered on time and on budget, according to the Alberta government.

The Vendor Performance Management (VPM) Program will help mitigate risk and control costs, delivering better value for taxpayer dollars.

Vendors who apply for Alberta Infrastructure opportunities valued over $100,000 will be required to participate. The program will assess each vendors' quality, management, schedule, costs and safety regularly, giving them informal feedback and formal evaluations on their performance.

"There will be adequate time and there will be a lot of opportunity for the contractors to improve," Infrastructure Minister Prasad Panda said. "We are being proactive."

Past performance will be considered for future contracts and the government says if a company does not improve its performance, they could suspend bidding privileges for up to three years.

The program was developed in collaboration with industry stakeholders.

"There should be consequences for poor performers," said Paul Verhesen with the Alberta Construction Association. "The whole purpose of this is to reward or acknowledge good contractors and good consultants."

The government says the new program formalizes best practices and brings Alberta in line with programs used in other jurisdictions.  

The VPM Program begins on Jan. 6, 2020.