Agenda - Council Work Session - 07/28/2026

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THE IMPACT OF RESPONSIBLE BIDDER ORDINANCES ON UNION CONTRACTORS IN ILLINOIS AND INDIANA Characteristics of RBOs in Illinois and Indiana The vast majority of RBOs that have been enacted throughout Illinois and Indiana have seven consistent provisions based on objective criteria and verifiable standards (Figure 1). Nearly all RBOs in Illinois and Indiana establish prequalification programs (98 percent), require contractors to submit certified payroll records (95 percent), and allow contractor bid submissions to be obtained by the public through Freedom of Information Act (FOIA) requests or their equivalent (96 percent). Almost all RBOs explicitly state that the provisions apply to the prime bidder (97 percent), and about one-third of RBOs extend these expectations to all subcontractors hired by the prime bidder (30 percent). Nearly all RBOs in Illinois and Indiana also ensure that contractors winning local government projects invest in training the next generation of skilled construction workers (Figure 1). More than nine out of every ten RBOs (92 percent) require "evidence of participation in apprenticeship and training programs, applicable to the work to be performed on the project, which are approved by and registered with the United States Department of Labor's Office of Apprenticeship." Nine out of every ten RBOs ensure that contractors provide proof of certificates of insurance through U.S. Department of Treasury -approved companies (90 percent) and another eight -in -ten ask contractors to provide proof that their workers are covered by health insurance plans and will earn retirement benefits (77 percent). In addition to these seven common characteristics which ensure accountability and transparency while promoting skilled workers, RBOs also sometimes include provisions to promote community safety (Figure 1). For example, 24 percent of RBOs in Illinois and Indiana require a written plan for employee drug testing and another 18 percent guarantee that contractors are certified by the Occupational Safety and Health Administration (OSHA). Furthermore, 12 percent of RBOs in Illinois and Indiana require contractors to submit a statement of commitment to proper classification of workers, helping to weed out criminal contractors who engage in misclassification and wage theft. These criteria decrease the chances that local taxpayer dollars will be used by contractors who cut corners at the worksite while increasing the likelihood that the workers who build taxpayer -funded infrastructure projects are safe, reliable, and paid a wage commensurate with their craftsmanship and experience. FIGURE 1: COMMON CHARACTERISTICS OF THE 163 RBOs THAT HAVE BEEN ENACTED IN ILLINOIS AND INDIANA Ten Common Criteria of Local RBOs Enacted in Illinois and Indiana Share of RBOs with Criteria 1 RBO establishes prequalification program 98% Requirements apply to prime bidder 97% • Requirements also apply to all subcontractors • 30% 3 Contractor submissions subject to FOIA requests 96% 4 Certified payroll required 95% 5 Proof of participation in USDOL-approved registered apprenticeship programs 92% 6 Proof of insurance (e.g., workers comp, liability) 90% 7 Proof that workers will receive health and retirement benefits 77% 8 Proof of drug prevention program 24% 9 Proof of OSHA certification 18% 10 Statement of commitment to proper worker classification 12% Foundation for Fair Contracting 2 Source: Authors' analysis of responsible bidder ordinances as compiled by Indiana, Illinois, Iowa (III FFC, 2021). N = 163 RBOs passed in Illinois and Indiana, including 109 in Illinois and 54 in Indiana. For additional characteristics, see Table A in the Appendix. 3