Responsible Contracting

For many public entities, selecting the lowest bidder on construction projects can sometimes present a problem, especially if the winning bidder has a history of performing shoddy work, missing deadlines and coming in over budget.

How can a village, township, city, county or school board protect itself from potential legal action for not selecting the lowest bidder?

The answer is to implement a Responsible Contractor policy.

Responsible Contracting protects governmental bodies from being forced to select the lowest bid by establishing qualifications contractors must meet in order to successfully bid on projects.

When enacted, this policy allows a public entity to select the lowest and most responsible bidder.

The benefits of a Responsible Contractor policy include:

• High-quality construction
• Reduced downtime due to injury or stop work orders
• Protected public investment

Responsible Contracting policies require contractors to demonstrate that they offer high-quality employment and work. Firms who meet responsible contractor standards are able to show they:

• Are fully licensed and bonded
• Have had no wage/hour violations for the past three consecutive years
• Provide OSHA 10-hour safety training
• Participate in an ERISA or joint labor-management training program (registered apprenticeship program)
• Pay Prevailing Wages and offer health insurance
• Provide all benefits of employment to their workforce (including social security, Workers’ Compensation and unemployment insurance)
• Comply with all other federal and state regulations
• Have no history of violating this policy in previous public contracts

Local 613 is committed to ensuring our signatory contractors are following these policies, which benefit our members and the community as a whole.