Responsible Bidding
What are the Criteria?
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:

A. Comply with all laws prerequisite to doing business in Illinois

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.

B. Produce Evidence of a Federal Employer tax ID number or social security number

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.

C. Provide evidence of compliance with Equal Opportunity Employer requirements

This simply restates Federal regulations that provide for non-discrimination on employment by government contractors and subcontractors.

D. Provide evidence of all specified insurance coverages

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.

E. Comply with all provisions of the Illinois Prevailing Wage Act

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.

F. Participate in a USDOL approved and registered apprenticeship program

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.

G. Comply with any other additional requirements a community may find beneficial

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.

  Home | Introduction | Benefits | Unions | Legality | Training & Apprenticeship | Enforcement | Existing RBO's | Letters of Endorsement |
Sample RBO Language | FAQ's | Contact | Downloadable Materials

All text, video and images are copyright © Responsible Bidding and may not be used without permission. All Rights Reserved.
website designed by scottberksdesign