Responsible Contracting
Responsible Contracting policies are widely recognized across the country as an effective way to ensure that only qualified contractors with a proven track record of delivering high-quality work are selected for construction projects.
These policies establish a clear set of minimum qualifications that all contractors must meet to be eligible to bid on a project. This typically applies to projects that:
- Receive public funding
- Require public approval
- Benefit from public investment
Under Responsible Contracting policies
Contractors must demonstrate that they provide high-quality employment and adhere to rigorous standards. Firms that meet responsible contractor standards are able to show that 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 (e.g. certified 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
Many Responsible Contracting policies require general contractors to include these same standards in agreements with all subcontractors. This ensures that every worker on the project is held to the same high standards of training, safety and fair compensation.
What if the lowest bidder does not meet this criteria?
An entity with a responsible contractor policy can refuse to hire any contractor who does not meet the requirements of this policy.
Specifically, when it comes to government, a municipality may reject any bid proposals that, in the municipality’s opinion, may contain inaccurate information or do not meet the responsible contractor policy contained in the bid specs.
The municipality reserves the right to accept or reject a bid or combination of bids if the contractor or contractor(s) are not “responsible contractors.”
By allowing project owners to thoroughly vet contractors, Responsible Contracting policies ensure that public funds are spent wisely. They promote higher-quality construction by requiring the use of skilled and well-trained tradespeople who earn Prevailing Wages and benefits.
IBEW Local 1253 strongly advocates for all public entities to adopt Responsible Contracting policies to protect workers, ensure fair competition and guarantee excellence in publicly funded construction projects.
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