eNews: Action Alert – Jan. 28, 2021

Thursday, January 28, 2021 - 01:29pm

Oppose SB1305 (McPike) – Public works contracts; subcontractor workforce requirements

Action is needed before Monday!

VML urges our members to contact senators to oppose SB1305 (McPike) which would require public bodies to include in every public works contract of more than $500,000 the following:

• Contractor must use subcontractors that certify in writing to the contractor that they will not outsource more than 10 percent of the cost of the work (excluding provision of materials).
  • There is an exception if the subcontractor submits to contractor in writing a request to exceed the outsource limit.
• The contractor must then approve or deny if there is work of a specialized nature that cannot be performed by the subcontractor.
• This decision must be communicated to the public body and reviewed for compliance with this code section.
• The public body may exercise the appropriate contract terms and conditions to enforce the outsource requirements.

Concerns / Talking Points

• Local procurement officials will have to spend time reviewing requests any time a contractor decides not to use his own personnel and then spend additional time enforcing the contract.
• Public projects will take longer to complete and cost more money (i.e., By restricting a subcontractor’s ability to subcontract more than 10 percent of the work, general contractors will have to spend more time and resources managing and coordinating directly with a variety of subcontractors).
• Hampers the ability of localities to use Small, Woman-owned, and Minority Owned businesses because many of them are subcontractors with specific skills.
• Leaves unaddressed the question as to how a public body will “review the contractor’s decision” to request a waiver; is there a standard for the review?
• Raises the cost of local construction projects.
• Unduly burdens localities by making them the “subcontractor police” – adds onerous requirements and restrictions without addressing the few bad actors.
• Construction contracts will have to be amended to include language that addresses subcontractors and the ability to enforce.

View/Download the one-sheet here >.

Status

On January 27, the bill was reported out of the Senate Finance and Appropriations Committee on a 9-6 vote.

Action

Please contact all your Senators to OPPOSE before Monday!

 

VML Contact: Michelle Gowdy, mgowdy@vml.org