Agenda - Council Work Session - 07/28/2026

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THE IMPACT OF RESPONSIBLE BIDDER ORDINANCES ON UNION CONTRACTORS IN ILLINOIS AND INDIANA Executive Summary A responsible bidder ordinance (RBO) is a local construction market policy that ensures public expenditures reflect area standards of quality and craftmanship. By ensuring that contractors meet objective criteria and verifiable standards, RBOs guarantee that public construction projects are not awarded to unscrupulous contractors who cut corners or have poor track records. As a result, RBOs provide a qualifications -based approach that works within the low -bid system to ensure quality by using professional, competent contractors who complete projects safely, on time, and on budget. Research shows that RBOs stabilize public construction costs and deliver value for taxpayers. • A study of more than 300 school construction projects in Ohio found that RBOs have "no discernible statistical impact on construction bid costs." • A study of more than 1,300 bids on public projects in two Kansas counties found that school construction costs were $67 cheaper per square foot when local RBOs were in effect. • A study of more than 1,200 public projects in Illinois and Indiana found that projects covered by RBOs are no more costly than those that are not covered by RBOs. Across Illinois and Indiana, RBOs tend to have common characteristics. Nearly all RBOs require: • Evidence of participation in approved registered apprenticeship training programs (92 percent). • Proof of certificates of insurance, such as workers' comp and liability insurance (90 percent). • Accountability and transparency through certified payroll records (95 percent) and by allowing bid submissions to be obtained through Freedom of Information Act (FOIA) requests (96 percent). Since 2019, 11 local government jurisdictions in Illinois and Indiana enacted RBOs and awarded projects both before and after passage. • 5 jurisdictions passed new RBOs in Illinois: DuPage County, the DuPage County Forest Preserve District, the City of Moline, the City of Waukegan, and the Village of Forest Park. • 6 jurisdictions passed new RBOs in Indiana: the City of LaPorte, the City of Rensselaer, the Town of Kouts, the Kankakee Valley School Corporation, the Knox Community School Corporation, and the South Bend Community School Corporation. • An analysis of 145 public projects finds that the market share of union contractors increased by 9.3 percent, or $5.2 million, in just these 11 jurisdictions alone due to the passage of new RBOs. Additionally, municipal projects awarded in the four Quad Cities from January 2018 through June 2021 provide a local case study on the impacts of RBOs within an integrated economic region. • The Quad Cities include Rock Island and Moline in Illinois and Davenport and Bettendorf in Iowa. • An analysis of 248 city -owned projects finds that the market share of union contractors is 13.1 percent higher on projects covered by RBOs in the Quad Cities area. • The case study reveals that the effect of RBOs may be larger when paired with other high -road construction policies, such as a state prevailing wage law. The data conclusively shows that union contractors are more likely than nonunion contractors to be responsible businesses that are good stewards of taxpayer dollars. That's why responsible bidder ordinances increase the market share of union contractors by between 9 percent and 13 percent. Responsible bidder ordinances deliver accountability and transparency for taxpayers, promote apprenticeship programs that produce skilled craftworkers for local businesses, and increase work for contractors who pay family -supporting wages and benefits.