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Wednesday, May 28, 2014

Responsible Bidder Bill Still Alive

The IML recently reported about an amendment to the "Responsible Bidder" bill (HB 924) that has given new life to this proposed legislation.  Public bodies should be aware of the bill because it could significantly increase the cost of public projects if it is ultimately approved.

HB 924, as amended, would require that all local government public works projects use contractors and sub-contractors that are "responsible bidders," as defined in the law.  A "responsible bidder" would have to meet certain criteria in the statute, including that the bidder and each subcontractor participate in apprentice and training programs approved by and registered with the U.S. Department of Labor, among other requirements.  

The IML remains opposed to the legislation, even as amended, because the requirements necessary to qualify as a "responsible bidder" would impose higher costs on smaller contractors and render them unable to afford to bid on public works projects. 

The implementation of the new requirement would be phased so that certain projects would be exempt, as follows: 

Projects less than $100,000 are exempt from July 1, 2015 through June 30, 2016

Projects less than $50,000 are exempt from July 1, 2016 through June 30, 2017

Projects less than $20,000 are exempt from July 1, 2017 and onward.

You can read more about the amended legislation on the IML website here.


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