Transport Quebec is implementing new measures to fight corruption in the construction industry, including a black list of companies with criminal convictions.

Cabinet ministers Michelle Courchesne and Pierre Moreau say the attempt to weed out bad apples was prompted when Jacques Duchesneau leaked a scathing report into the state of corruption and ties to organized crime within Quebec's construction industry.

That report said bureaucrats and engineers at Transport Quebec were often hoodwinked by construction firms that inflated bids or busted budgets, in part because the ministry was understaffed and no longer had the institutional knowledge necessary to fully monitor job sites and bids.

As a result, the ministry plans to hire close to 1,000 engineers and technicians to do work that had been outsourced to private firms.

"We will open an office of strategic projects in Montreal, so we will have the expertise to deal with infrastructure projects and problems in Montreal," said Transportation Minister Pierre Moreau.

The politicians say Transport Quebec has to change its culture, taking on more responsibility in awarding and overseeing projects.

"We want to be very realistic, and make sure what we do we do well. And you know that we are able to do exactly the change of culture that we need to do," said Courchesne, president of the Treasury Board.

Under the new scheme, companies that win bids will no longer be able to invoice for additional costs after the fact.

Transport Quebec says currently 74% of contractors bill for extra expenses.

The province will also have a black list of companies convicted of fraud or other crimes associated with the construction industry.

"When you are dealing with the government it's a privilege. You have to come with clean hands when you have that kind of privilege. That's the message we want to send," said Moreau.

The provincial Construction Board (Regie du batiment du Quebec) already has laws which give it the power to revoke a contractor's licence when the company is convicted of tax fraud.

The new regulations should be in place in the spring of 2012.