Why Union Construction
Responsible Contractor Policies

Responsible Contractor Policies (RCP) merge variations from Best Value Contracting (BVC) and traditional Lowest Responsible Bidder rules. Like Best Value Contracting, Responsible Contractor Policies create additional standards in order to be pre-qualified to be able to bid. If a contractor meets these standards, then the traditional Lowest Responsible Bid rules apply.

There are a number of reasons why an owner of a project would consider the use of RCP tests. By knowing in advance whether a bidding contractor meets criteria set by the owner before a bid is accepted allows the owner to create additional standards for a project that may be in the owner's interest. Examples may include things like drug testing, bonding, safety and training issues and business integrity.

Another benefit of RCP tests is that it requires firms that bid on projects to affirmatively demonstrate that they have been responsible in the workplace in the past. This allows for a framework where issues that an owner might care about like financial stability, prior penalties paid for violation of governmental rules for things like prevailing wage laws and whether a contractor provides benefits like health care and pensions for its workers. Many owners of projects want to know that a contractor meets community standards that they care about. The use of RCP tests allow for those options.

It is important to note that RCP tests are used on a project-by-project basis. This means that if a contractor is found deficient on one project, that they will still be eligible to bid in the future if they correct the deficiencies that they were found to have in the past. This can lead to higher standards in the construction industry that will benefit business and workers alike.

The last point makes RCP tests different than traditional prequalification standards. In normal prequalification rules by public agencies, a contractor is pre-qualified for a specific period of time and once they meet the standards, can bid on any project during that time.

Responsible Contractor Policies are another procurement option for owners of property that when used correctly can create higher standards in the construction industry. They should be considered by owners that want to create the highest standards for their projects.