The City of Laval has suspended the handing out of new public works contracts involving sidewalks, sewers or aqueducts.
The decision comes in the wake of the tabling of the Quebec government's Bill 1, the vice-chair of the city's executive committee Basile Angelopoulos said in a statement.
The legislation presented last week aims to crack down on collusion and fraud in the construction industry.
Laval will still go ahead with the granting of contracts related to health, public security and services to the public.
The city will also grant new contracts that are subject to grant programming from the provincial and federal governments.
Last week, Radio-Canada revealed Laval had continued to hand out $28 million in contracts to companies which had been searched by Quebec's anti-corruption squad or had been the subject of allegations made before the Charbonneau Commission.
Mayor remains on medical leave
Laval has also been in the spotlight recently following raids by the province's anti-corruption squad.
Officers with the squad raided a branch of the Desjardins credit union in Laval and another financial institution on Oct. 24. They seized contents from about 10 safety-deposit boxes linked to Mayor Gilles Vaillancourt.
On Oct. 4, about 70 officers descended on city hall, Vaillancourt's house and the city's engineering and human resources departments' offices.
Vaillancourt has denied allegations of corruption since being accused of illegally financing the provincial Liberal Party in 2002.
He went on medical leave Oct. 24 to take time to rest and reflect.
Angelopoulos stands as the de-facto head of the city while the Laval mayor remains on leave.