Illinois Prevailing Wage Act QuizResponsible Bidding OrdinanceIllinois Prevailing Wage Act Quiz

Our electrical contractors play by the rules, follow the laws, and comply with existing ordinances to insure the taxpayers get what they pay for - Quality Work and value on jobs completed on-time and within budget.  NECA-IBEW electrical contractors pay their fair share of taxes, comply with Unemployment Insurance, Workers' Compensation, and Labor Regulations as demanded by the law.  We follow local ordinances and licensing requirements, provide health care, and provide local employees local opportunities without depleting the financial resources of government or local charitable support groups.

But not all contractors play fair.  Unscupulous contractors will cut corners to win bids by intentionally submitting low bids knowing they won't be following prevailing wage laws, by misclassifying their employees as independent contractors to avoid paying Workers' Compensation and Unemployment Insurance benefits, using inferior materials, and by taking safety shortcuts.  

Not only is this unfair to local employees who live and work in their own communities, but it's

NOT FAIR TO THE TAXPAYERS!

Tax money for public construction must be utilized by the most lowest and most responsible contractors to insure projects are done by specification and with the highest quality product available.  But it's difficult to compete and provide value back to the communities when unscrupulous and cheating contractors don't bid on a level playing field.  

 

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Responsible Bidding

Responsible Bidding is the idea that public construction projects paid for by taxpayer money such as schools, libraries and water treatment plants need not automatically be awarded to the lowest bidder. The public body undertaking the project should retain some discretion to award the project to the lowest "responsible bidder."

So, what makes a bidder responsible, and why would a public body ever want to pass on the lowest bid? The answer has to do with ethics and the opportunity to hire the safest, most qualified company available to perform the work on behalf of the taxpayers.

There are companies out there willing to do the work for bargain-basement prices, but they may not always deliver what they promise and may let your community down.

A community can help assure that it hires only responsible companies by passing a "Responsible Bidder Ordinance" ­– a resolution adopted into a public body's procurement codes that specifies certain criteria that a contractor must meet in order to be eligible to perform work on behalf of that community.

Simple things like assuring that contractors have the proper business registrations, show past compliance with environmental, labor and safety laws, relevant insurance coverage, prevailing wage compliance and apprenticeship and training participation can go a long way in assuring the financial and structural success of all public construction projects.

In the long run, the responsible contractor is going to provide more taxpayer value than the contractor who is cutting corners in the areas of training, labor or safety.

 

The term "lowest responsible bidder" is incapable of an exact definition, but the concept involves considerably more than solely the monetary amount of the company's bid. The term contemplates that bidders discharge contractual obligations in accordance with what may be expected or demanded under the terms of the contract. In fact, a contract may be awarded to one who is not the lowest bidder, where this is done in the public interest, in the exercise of discretionary power granted under the laws, without fraud, unfair dealing, or favoritism, and where there is a sound and reasonable basis for the award. Where an entity has exercised its discretion, the presumption obtains that the action was regular and lawful.