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RBO’s vary in the level of detail and exact criteria they contain.
However, we have identified language that we believe comprises
a “comprehensive” Responsible Bidder Ordinance. This language
contains the following provisions:
All bidders must:
This most basic of requirements simply makes contractors
provide evidence that they are in compliance with the laws of doing
business in Illinois. It assures the contracting agency that the
bidding company is legitimate and credible by, for example, being
current with the Secretary
of State, or the Department
of Financial and Professional Regulation if necessary, and not classified as
“debarred” by the Department
of Labor, to mention a few. Essentially
this assures that companies performing work on behalf of the taxpayers of Illinois follow the Illinois laws that permit
them to do business in this state.
By requiring the contractor to produce their Federal
Employer Tax ID Number or Social Security Number (if they are an individual),
it provides another assurance to the contracting agency that they
are working with a legitimate contractor.
Again, a very basic requirement
that is simply there to protect the awarding agency.
This simply restates Federal regulations that provide
for non-discrimination on employment by government contractors
and subcontractors.
Requiring specific certificates of insurance coverage
is a way for the contracting agency to protect itself from the
irresponsible actions of an unscrupulous contractor. The State
of Illinois requires general liability, product liability, worker’s
compensation, completed operations, hazardous occupation, and
automobile insurance.
Some communities have required commercial umbrella policies, specified
dollar amounts in their Ordinances, or included other relevant policies based on the circumstances unique to the specific project or specific community.
A company working public construction without proper insurance
coverage could cost the taxing body dearly.
The Prevailing
Wage Act sets, essentially, a minimum wage
that must be paid to workers on public construction projects. It
provides allotments for worker’s wages, health & welfare,
retirement and training. This important state law levels the playing
field among bidding contractors and must be followed regardless
of the presence of an RBO - but the RBO can serve to remind and
reiterate the law to potential bidders.
Click
here for the latest prevailing wage rates.
See the “Training” and “FAQ” sections of this website for more
on Prevailing Wage.
This is all about training and education. Construction
is no different than any other field - training and education
makes you better. Contractors that participate in a USDOL-approved
apprenticeship and training program employ the most skilled and
safety-conscious workers possible while investing heavily in their
continued training. These are the contractors that should be on
projects that are being subsidized with public financing.
This one is not a state law, but as mentioned in section E on Prevailing Wage, part of every worker’s wages is allotted for training - so
why not hire one that utilizes that allotment by participating in a
USDOL apprenticeship program?
See the Training & Apprenticeship section of this website for
more on this.
Some additional requirements that a taxing body may include,
at its discretion, might be: non-compliance penalties or harassment
policies. Essentially this could include any criteria that a public
body can legally ask its prospective contractors to meet in order
to provide the best value for the taxpayers.
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