Responsible Bidding

Responsible Bidder Ordinances (RBOs) are local construction policies that establish objective criteria and verifiable standards for contractors bidding on public infrastructure projects.

An RBO is a protection plan for taxpayers, ensuring that local quality standards, local levels of craftsmanship, and local economic development practices are upheld. An RBO also guarantees that responsible contractors win public projects, rather than fly-by-night contractors who cut corners in the areas of training and safety.

Most RBOs include important standards…

  • Proof of participation in a registered apprenticeship training program

  • Proof of certificates of insurance

  • Prequalification surveys

  • Compliance with all local, state, and federal laws

RBOs are especially effective in states that have repealed prevailing wage laws by minimizing the negative economic, safety, and workforce development consequences associated with a lack of standards on taxpayer-funded construction projects.

  • Worker turnover is 2% lower in counties with RBOs.

  • Workers on heavy and highway construction earn 8% more in counties with RBOs.

Many counties, cities, townships, and school districts across the nation have enacted responsible bidder ordinances. However, most research on RBOs has been conducted in Illinois and Indiana.

RBOs courage 8% more bid competition

RBOs have no impact on overall project costs

RBOs improve quality and strengthen apprenticeship programs

RBOs uphold local quality standards on public projects