ILA Library Conference - Oct 2016 CPF_KMT - Construction Projects (2).PPTX

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ILLINOIS LIBRARY ASSOCIATION
2013 ANNUAL CONFERENCE
OCTOBER 16, 2013
C A R M E N P . F O R T E J R .
K A T H L E E N M . T E R E S E
K L E I N , T H O R P E A N D J E N K I N S , L T D .
2 0 N O R T H W A C K E R D R I V E , S U I T E 1 6 6 0
C H I C A G O , I L 6 0 6 0 6
3 1 2 - 9 8 4 - 6 4 0 0
The Do's and Don'ts of Construction and
Remodeling Projects: From Drafting Bid
Documents to Awarding the Contract

Presentation Topics
Best practices for dealing with the issues that arise when engaging in
construction projects, including:
1. The Process of Selecting an Architect or Engineer
2. Public Bidding Requirements
3. A General Bidding Timeline
4. The Required Bidding Processes for Local Libraries and Library
Districts, Including Prohibited Activities and Criminal
Consequences
5. What to Include In Bid Documents, Including the Advertisement
for Bids, and How To Evaluate Bid Responses; and
6. Prevailing Wage Requirements

The Process of Selecting an
Architect or Engineer
The Local Government Professional
Services Selection Act
(50 ILCS 510/0.01 et seq.)
Provides the Process for Hiring Architects,
Engineers and Land Surveyors

Local Government Professional
 Applies to all units of local government, including
Library Districts and Local Libraries
 Does not apply to home rule municipalities, but
applies to local libraries within home rule
municipalities

 There are several exceptions to the Act:
 If the Board of Library Trustees, by resolution,
determines that an emergency exists and a firm must be
selected in an expeditious manner; and
 If the cost of professional services (architect, engineer or
land surveyor) for the project is expected to be less than
$25,000, the Board of Library Trustees may, by
resolution, waive the notice requirement, conducting
interviews and selecting a firm

 Also, if a Library has a good and satisfactory
existing relationship with a professional
service provider (architect, engineer or land
surveyor), it is not required to follow the Act’s
requirements
 If a Library does not have a good and
satisfactory relationship with a professional
service provider, it must follow the Act’s
requirements

 Absent a good and satisfactory existing relationship
with a professional service provider, a Library must:
 (1)Mail or email notice seeking statements of interest in the
specific project to all firms that have a current statement of
qualifications and performance data on file with the Library;
or
 (2) Place an advertisement seeking a statement of interest in
the specific project

The advertisement must:
(1) seek statements of qualifications and
performance data
(2) be placed in a secular English language
newspaper of general circulation in the Library
boundaries or on the Library website; and
(3) must include the day, hour and place that the
statement of interest and statement of qualifications
and performance data is due

 Libraries are permitted to discuss the project with
each firm and to require a public presentation
 The Act prohibits seeking:
 Formal or informal submissions of verbal or written estimates
of costs; or
 Proposals in terms of dollars, hours required, percentage of
construction cost or any other measure of compensation
prior to selecting a firm with which the Library will
seek to enter into a contract

The Library is then required to evaluate the submitted
statements, selecting the top three based on:
(1) qualifications
(2) ability of professional personnel
(3) past record and experience
(4) performance data on file
(5) willingness to meet time requests
(6) location
(7) workload of the firm, and
(8) other qualifications based factors determined in
writing

 If submittals reviewed by Library Board, must be
done at an open meeting
 There is no closed session exception for selection of
an architect or engineer

 After ranking the top 3, in order of preference, the Act
requires an attempt to negotiate a satisfactory contract
with the top ranked professional service provider “at a
fair and reasonable compensation, taking into account
the estimate of value, scope, complexity and professional
nature of the service to be rendered”
 If negotiations with the top ranked professional service
provider fail, negotiations may proceed with the second
ranked provider, and so on
 If no contract can be reached with the top 3, the process
must begin again

Public Bidding Requirements
The Local Library Act (75 ILCS 5/5-5)
The Public Library District Act of 1991
(75 ILCS 16/40-45)

Generally, public bidding is required when costs will
be in excess of $20,000, and
Contract is for one of the activities set forth in:
Section 5-5 of the Local Library Act
or
Section 40-45 of the Public Library
District Act of 1991

Section 5-5 of the Local Library Act provides:
When the directors determine to commence the construction of the building or the
remodeling, repairing or improving of an existing library building or the erection of an
addition thereto, the purchase of the necessary equipment for such library, or the
acquisition of library materials such as books, periodicals, recordings and electronic data
storage and retrieval facilities in connection with either the purchase or construction of a
new library building or the expansion of an existing library building, they may then revise
the plan therefor or adopt a new plan and provide estimates of the costs thereof, and
shall, when the cost is in excess of $20,000, advertise for bids for the construction of the
building, or the remodeling, repairing or improving of an existing library building or the
erection of an addition thereto, or the purchase of the necessary equipment for such
library, or the acquisition of library materials such as books, periodicals, recordings and
electronic data storage and retrieval facilities in connection with either the purchase or
construction of a new library building or the expansion of an existing library building,
and shall let the contract or contracts for the same, when the cost is in excess of
$20,000, to the lowest responsible bidder or bidders and may require from such bidders,
such security for the performance of the bids as the board shall determine. The directors
may let the contract or contracts to one or more bidders, as they shall determine
(75 ILCS 5/5-5)

Section 40-45 of the Public Library District Act of 1991 provides:
Bids for construction, improvements, or equipment purchases
(a) When the trustees determine to commence constructing the building, purchasing a
site or a building, remodeling, repairing, or improving an existing library building,
erecting an addition to an existing library building, or purchasing the necessary
equipment for the library, they may then revise the plan or adopt a new plan and provide
estimates of the costs of the revised or new plan
(b) The board shall, when the cost is in excess of $20,000, advertise for bids for
constructing the building, remodeling, repairing, or improving of an existing library
building, erecting an addition to an existing library building, or purchasing the necessary
equipment for the library and shall let the contract or contracts for the project, when the
cost is in excess of $20,000, to the lowest responsible bidder or bidders. The board shall
require from the bidders security for the performance of the bids determined by the
board pursuant to law. The trustees may let the contract or contracts to one or more
bidders as they determine
(75 ILCS 16/40-45)

 If a contract is under $20,000, public bidding is not
required and an RFP may be used
 Note: do not “phase” or “string” a project to get a
contract or contracts under $20,000 – as discussed
below it is illegal

 If a professional service contract is involved
(accountant/architect/engineer/land
surveyor/doctor/attorney), public bidding is not
required and an RFP may be used

General Bidding Timeline
1. Create an Advertisement for Bids; send it to newspaper
for publication by publication deadline, and consider
posting on the Library’s website
2. Make bid documents available (for at least 2 weeks)
3. Hold a mandatory pre-bid meeting, if necessary
(schedule at least 1 week after bid documents are made
available, and at least 1 week before bid opening)

General Bidding Timeline (continued)
4. Publically open bids. Allow time to review bids and determine
if the lowest bidder is the lowest responsible bidder prior to
Library Board meeting when Board will be asked to vote on
contract
5. Award the contract to the lowest responsible bidder
6. Send out a notice of award of bid, and seek certificates of
insurance, payment bonds and performance bonds from the
awarded contractor; and
7. Set a start date for work

The Required Bidding Processes for
Local Libraries and Library Districts,
Including Prohibited Activities
and Criminal Consequences
Local Libraries (75 ILCS 5/5-1 et seq.)
Library Districts (75 ILCS 16/40-5 et seq.)
Criminal Acts (720 ILCS 5/33E-1 et seq.)
Criminal Penalties (730 ILCS 5/5-8-1)
Criminal Fines (730 ILCS 5/5-9-1)

Local Libraries: 75 ILCS 5/5-1
If a Local Library Board seeks to:
Erect a library building, purchase a site, purchase a building
Repair/remodel/improve an existing library building
Build an addition
Furnish necessary equipment, or
Acquire library materials, such as books, periodicals, films,
recordings and electronic data storage and retrieval facilities
in connection with any of the foregoing:
It must prepare a plan, estimate the cost, determine funds
available, determine amounts to be raised from financing and
term of repayment (not to exceed 20 years)

 Once the Board prepares this plan and a record of its
proceedings, it must transmit them to the host
municipality for its consideration and approval
 While there is no case law interpreting this section of
the Local Library Act, it is clear that the host
municipality must be afforded the opportunity to
consider and approve or disapprove any record of
proceedings and plans
Local Libraries: 75 ILCS 5/5-1 (continued)

Demonstrates that the host municipality must be afforded the
opportunity to consider and approve or disapprove any plan
Provides that a host municipality may issue bonds if it approves
the Library Board’s plans and must approve any issuance of
bonds
If the host municipality does not issue bonds or approve their
issuance, the Library Board must divide the costs into as many
parts as it determines to spread the collection thereof, and certify
the amount of one of these parts to the host municipality each
year during the term over which they have determined to spread
the collection

Requires the host municipality to levy any amounts
certified by the Board of Library Trustees for capital
projects to collect the amounts levied and to pay them
to the Board of Library Trustees

Requires the Library Board to determine to proceed
with a capital project at once or to wait and allow funds
to accumulate
If the Library Board decides to wait, funds are to be
invested in accordance with the Public Funds
Investment Act and are to be available until needed for
any or all enumerated purposes
The Library Board may contract to accomplish any of
the enumerated purposes

 Section 5-5 of the Local Library Act
When the directors determine to commence the construction of the building or the
remodeling, repairing or improving of an existing library building or the erection of
an addition thereto, the purchase of the necessary equipment for such library, or the
acquisition of library materials such as books, periodicals, recordings and electronic
data storage and retrieval facilities in connection with either the purchase or
construction of a new library building or the expansion of an existing library
building, they may then revise the plan therefor or adopt a new plan and provide
estimates of the costs thereof, and shall, when the cost is in excess of $20,000,
advertise for bids for the construction of the building, or the remodeling, repairing
or improving of an existing library building or the erection of an addition thereto, or
the purchase of the necessary equipment for such library, or the acquisition of
library materials such as books, periodicals, recordings and electronic data storage
and retrieval facilities in connection with either the purchase or construction of a
new library building or the expansion of an existing library building, and shall let
the contract or contracts for the same, when the cost is in excess of $20,000, to the
lowest responsible bidder or bidders and may require from such bidders, such
security for the performance of the bids as the board shall determine. The directors
may let the contract or contracts to one or more bidders, as they shall determine

Requires the Board of Library Trustees to obtain
municipal host approval before obtaining any
mortgage

Any tax levy for a capital improvement project must
be adopted by ordinance or resolution, certified to
the proper election officials, submitted to the voters,
and approved by a majority of those voting thereon
before it can be taxed and collected

Permits the Library Board to establish a special reserve fund
and to accumulate unexpended tax revenues in such a fund in
order to purchase sites and buildings, construct and equip
buildings, rent and repair buildings and repair or alter library
buildings on an emergency or planned basis
Also requires the Library Board to specify in its annual
appropriation determination to the host municipality that a
special reserve fund has been established, is being
accumulated and that a plan will be developed and adopted
for the use of said fund within 2 years of establishment

If a Library District Board seeks to erect a library building,
purchase a site, purchase a building, repair/remodel/improve an
existing library building, build an addition, furnish necessary
equipment therefor or acquire library materials, such as books,
periodicals, films, recordings and electronic data storage and
retrieval facilities in connection therewith, the Board of Library
Trustees must prepare a plan, estimate the cost, determine funds
available from accumulations and determine amounts to be
raised from a bond issue, annual certification or mortgage (not to
exceed 20 years)
Once the Board prepares this plan and record of their
proceedings, the Board secretary shall post notice of the
proceedings and when the financing meeting will be held as well
as the place where the plan and the estimate can be inspected by
the public
Library Districts: 75 ILCS 16/40-5

(a) Permits the Board to issue bonds for the capital
improvement project by ordinance
(b) The ordinance shall state when the bonds and
interest thereon shall become payable (not to exceed
20 years)
(c) The ordinance shall be irrepealable and shall
provide for an annual levy and collection of a special
tax to pay the bond principal and interest

Requires that a majority of the voters of the District
must approve any bond issue and special tax levy for
said purpose and provides the procedure for the
District to place a bond referendum with the proper
election authority

If the District does not issue bonds or approve their
issuance, the Library Board may provide for funds by
annual certification and apportionment and must
divide the costs into as many parts as it determines to
spread the collection thereof
The District must then, by annual ordinance, certify
the amount of one of these parts during the term over
which they have determined to spread the collection
and must then levy a special annual tax to pay that
amount

Permits the District to take out a mortgage to fund a
capital project, not to exceed 75% of the value of the
building or site as improved by the plan
The District must then, by annual ordinance, certify the
amount of the mortgage principal and interest during the
term over which they have determined to spread the
mortgage and must then levy a special annual tax to pay that
amount

Provides that the annual certification and
apportionment of costs and special tax levy
authorized in section 40-20, and the annual
certification of mortgage principal and interest and
special tax levy authorized in section 40-25, must be
submitted to and approved by a majority of the
districts voters voting on the question at an election
Provides the procedure for the District to place an
appropriate referendum with the proper election
authority

Provides the procedures if a bond issue or a special
tax supporting an annual certification or a mortgage
are approved by the voters
Provides the procedures for levying the special tax
supporting a bond issue as well as the special tax
supporting an annual certification or a mortgage

Requires the Library Board to determine to proceed
with a capital project at once or to wait and allow funds
to accumulate
If the Board decides to wait, funds are to be invested in
accordance with the Public Funds Investment Act and
are to be available until needed for any or all
enumerated purposes
The Board may contract to accomplish any of the
enumerated purposes

(a) When the trustees determine to commence constructing the
building, purchasing a site or a building, remodeling, repairing, or
improving an existing library building, erecting an addition to an
existing library building, or purchasing the necessary equipment for the
library, they may then revise the plan or adopt a new plan and provide
estimates of the costs of the revised or new plan
(b) The board shall, when the cost is in excess of $20,000, advertise
for bids for constructing the building, remodeling, repairing, or
improving of an existing library building, erecting an addition to an
existing library building, or purchasing the necessary equipment for the
library and shall let the contract or contracts for the project, when the
cost is in excess of $20,000, to the lowest responsible bidder or
bidders. The board shall require from the bidders security for the
performance of the bids determined by the board pursuant to law. The
trustees may let the contract or contracts to one or more bidders as they
determine

Permits the Library board to establish a special
reserve fund and to accumulate unexpended tax
revenues in such a fund in order to purchase sites
and buildings, construct and equip buildings, rent
and repair buildings and repair or alter library
buildings on an emergency or planned basis
Also requires the Library board to develop and adopt
a plan for the use of said fund within 2 years of
establishment

Criminal Acts: 720 ILCS 5/33E-1 et seq.
The Criminal Code of 2012
Section 33E-1 provides: “It is the finding of the General
Assembly that the cost to the public is increased and the
quality of goods, services and construction paid for by
public monies is decreased when contracts for such
goods, services or construction are obtained by means
other than through independent noncollusive submission
of bids or offers by individual contractors or supplies,
and the evaluation of those bids or offers by the
governmental unit pursuant only to criteria publicly
announced in advance” (720 ILCS 5/33E-1)

“Bid Rigging”
Section 33E-3 provides that “bid-rigging” is a Class 3 felony and is
committed when a person “knowingly agrees with any person who is
or but for such agreement would be, a competitor of such person
concerning any bid submitted or not submitted by such person or
another to a unit of State or local government when with the intent
that the bid submitted or not submitted will result in the award of a
contract to such person or another and he either (1) provides such
person or receives from another information concerning the price or
other material term or terms of the bid which would not be
otherwise disclosed to a competitor in an independent noncollusive
submission of bids or (2) submits a bid that is of such a price or
other material term or terms that he does not intend the bid to be
accepted”
Criminal Acts

“Bid Rigging”
A person convicted of bid rigging or any similar offense is
barred for 5 years from the date of conviction from
contracting with any unit of State or local government
If a corporate employee is convicted of bid rigging, the
corporation will not be so barred if the employee is no longer
employed AND (1) the corporation has been adjudicated not
guilty or (2) the corporation demonstrates to the unit of local
government and it finds that the commission of the offense
was not authorized, requested, commanded nor performed by
a corporate official
Criminal Acts

“Bid-Rotating”
Section 33E-4 provides that “bid-rotating” is a Class 2
felony and is committed when “pursuant to a collusive
scheme or agreement with another a person engages in a
pattern over time (which, for the purposes of this
Section, shall include at least 3 contract bids within a
period of 10 years, …) of submitting sealed bids to units
of State or local government with the intent that the
award of such bids rotates or is distributed among,
persons or business entities which submit bids on a
substantial number of the same contracts”
Criminal Acts

“Bid-Rotating”
A person convicted of bid rotating or any similar offense is
permanently barred from contracting with any unit of State or
local government
If a corporate employee is convicted of bid rigging, the
corporation will not be so barred if the employee is no longer
employed AND (1) the corporation has been adjudicated not
guilty or (2) the corporation demonstrates to the unit of local
government and it finds that the commission of the offense
was not authorized, requested, commanded nor performed by
a corporate official
Criminal Acts

“Public Official/Employee Misconduct”
Section 33E-5 provides that:
(a) it is a Class 4 felony for any public official or employee to
knowingly open a sealed bid at a time or place other than as
specified in the invitation to bid, as otherwise designated by the
public entity or outside the presence of witnesses required by
applicable statute or ordinance
(b) it is a Class 3 felony for any public official or employee to
knowingly disclose to interested persons any information related to
the terms of a sealed bid except as provided by law or necessary to
the performance of their duties
(c) it is not illegal for any public official or employee to make a
disclosure to interested persons where the disclosure is also made
generally available to the public
Criminal Acts

(a) it is a Class 4 felony for any public official or employee to
knowingly convey, either directly or indirectly, outside of the
public bidding process, information concerning specifications
for such contract or the identity of any particular potential
subcontractors where such information would influence the
likelihood of acceptance of the bid
It is not illegal for a public official or employee to convey such
information where such information is also made generally
available to the public
Criminal Acts

(b) it is a Class 3 felony for any public official or
employee to, directly or indirectly, knowingly inform
a bidder that the bid will be accepted or executed
only if specified individuals are included as
subcontractors
Criminal Acts

(c) No violation of section 33E-6 occurs where a
public official or employee complies with federal,
State or local minority or female owned business
enterprise programs
(d) A bidder commits a Class A misdemeanor if he or
she receives information and fails to advise the
Attorney General or State’s Attorney of what is
reasonably believed to be a violation of sections 33E-
6(a) and (b)
Criminal Acts

(e) A public official or employee commits a Class 3 felony
if he or she knowingly awards a contract based on criteria
not publicly disseminated
(f) It is not illegal for a public official or employee to
provide a transcript or summary of any pre-bid
conference where such transcripts or summaries are also
made generally available to the public
Criminal Acts

“Kickbacks”
Anything of value offered or provided to improperly obtain or reward
favorable treatment with regard to a prime contract or subcontract
(720 ILCS 5/33E-2)
(a) it is a Class 3 felony for any person to (1) provide, attempt to provide or
offer to provide a “kickback” or (2) to solicit, accept or attempt to accept a
“kickback” or (3) includes any “kickback” amount in the contract price
(b) it is a Class 4 felony for any person to fail to report any of the foregoing
to law enforcement officials
(d) A public entity can file a civil action to recover “kickback” amounts in
twice the amount of each individual “kickback” – there is a 6 year statute of
limitations from the date of the “kickback” or the reasonable discovery
thereof
Criminal Acts

“Bribery”
(a) Bribery of a contractor or subcontractor’s employee
to obtain wrongful certification or approval of the
quality of completion of any goods or services on a
public project is a Class 4 felony
(b) Any contractor or subcontractor’s employee who
accepts a bribe as defined in subsection (a) above
commits a Class 3 felony and failure to report a bribe
as defined in subsection (a) above is a Class 4 felony
Criminal Acts

“Change Orders”
Section 33E-9 provides that change orders must be authorized
in writing. Before authorizing any change orders, the public
employee or official so authorized must first obtain, from the
public body, a written determination that:
(1) The circumstances necessitating the change order were not
reasonably foreseeable at the time the contract was signed, or
(2) The change order is germane to the original contract as
signed, or
(3) The change order is in the best interest of the public body
Failure to obtain the foregoing is a Class 4 felony
Criminal Acts

“Change Orders”
Section 33E-9 further provides that the written
determination and the written change order must be
preserved in the contract file and shall be open to the
public for inspection
Section 33E-9 only applies to a “change order” or
series of “change orders” which increase or decrease
either the contract cost by a total of $10,000 or
more, or completion of the contract by a total of 30
days or more
Criminal Acts

“Not Barred From Contracting Certificate”
Section 33E-11 provides:
that a bidder/prime contractor must certify that he or she is not barred
from contracting with local governmental entity due to violating sections
33E-3 (bid rigging) or 33E-4 (bid rotating)
a bidder/prime contractor who knowingly makes a false statement material
to said certification commits a Class 3 felony
Criminal Acts

Proper Public Official/Employee Conduct
Section 33E-12 provides that it is not illegal for any
public official or employee to:
(1) Disclose the name of any person who has submitted a
bid or who has been awarded a public contract to any
person
(2) Convey information regarding acceptable alternatives
or substitute plans or specifications if made generally
available to the public and mailed to any person who has
submitted a bid; or
(3) Negotiate with the lowest responsible bidder
a reduction in only the price term of the bid
Criminal Acts

Section 33E-13 provides that negotiations under the
Local Government Professional Services Selection
Act (Architects/Engineers/Land Surveyors) are not
subject to the Criminal Code of 2012
Section 33E-14 provides that it is a Class 3 felony for
a vendor to make false statements in a vendor
application being considered by a public entity
Criminal Acts

“False Entries”
Section 33E-15 provides that any public official,
employee or agent who makes a false entry in any
book, report or statement with the intent to defraud
commits a Class 3 felony
Criminal Acts

“Misapplication of Funds”
Section 33E-16 provides that any public official,
employee or agent who knowingly misapplies public
funds commits a Class 3 felony
Criminal Acts

Public Official/Employee Misconduct
Section 33E-17 provides that it is a Class 3 felony for any
public official or employee to participate, share in, or receive
directly or indirectly anything of value through a contract with
the public entity, with the intent to defraud the public entity
“Bid Stringing”
Section 33E-18 provides that “bid stringing” is a Class 4 felony
and is committed when a person with the intent to avoid
public bidding requirements, structures a contract to avoid
the contract being subject to competitive bidding
requirements
Criminal Acts

The Unified Code of Corrections
Section 5-8-1(a) provides that a sentence of
imprisonment for a felony shall be a determinate
sentence set by the court hereunder
Section 5-8-1(d)(2) provides that for Class 2 felonies
committed after 1/25/13, a 2 year sentence shall be
imposed
Section 5-8-1(d)(3) provides that for Class 3 and 4
felonies, a 1 year sentence shall be imposed
Criminal Penalties: 730 ILCS 5/5-8-1

The Unified Code of Corrections
Section 5-9-1(a) authorizes imposition of a
fine upon any sentenced offender
Section 5-9-1(c) automatically imposes an
additional $10 in fines for each $40 in fines
or fraction thereof to support various
programs
Criminal Fines: 730 ILCS 5/5-9-1

The Advertisement for Bids
The Bid Documents
Evaluating the Bids
What to Include In Bid Documents,
Including the Advertisement for Bids, and
How To Evaluate Bid Responses

 The Advertisement for Bids, should include:
(1) Description of the project
(2) Deadline for submission of sealed bids, including date, time and
place bids must be submitted
(3) Date, time and place of bid opening
(4) Statement that bids will be opened publicly and read aloud
(5) Requirement to post bid bond
(6) Requirement to provide performance as well as labor and
material payment bonds if contract is awarded
(7) Location to obtain copies of specifications and/or bid package,
and the cost thereof

 The Advertisement for Bids, should include (continued):
(8) Statement that Library may waive bid irregularities and may reject all
bids
(9) Statement that successful bidder must comply with Illinois Prevailing
Wage Act
(10) Statement that successful bidder must comply with all other
applicable State and Federal laws, including, but not limited to,
Human Rights Act
(11) Date, time and place of mandatory pre-bid meeting; if required

The Bid Documents
 Generally, bid documents must contain all information
necessary for the particular project, including, but not
limited to:
 Clear, unambiguous and reasonably specific specifications for the work
to be completed
 Performance and labor and material bond requirements for projects in
excess of $50,000 (recent amendment to 30 ILCS 550/0.01 et seq.)
 Prevailing wage requirements (820 ILCS 130/0.01 et seq.)
 Statement that Library may waive bid irregularities and may reject all
bids
 Requirement that bid bonds be posted
 Local Libraries (75 ILCS 5/5-5)
 Library Districts (75 ILCS 16/40-45)

 (continued):
 Insurance coverage requirements
 720 ILCS 5/33E-11 form certifying that bidder/prime contractor is not
barred from contracting with local governmental entity due to violating
sections 33E-3 (bid rigging) or 33E-4 (bid rotating)
 65 ILCS 5/11-42.1 form certifying that contractor is not delinquent in
payment of any taxes to the Illinois Department of Revenue (subject to
exceptions)
 820 ILCS 265/1 et seq. form certifying that contractor has a written
program meeting or exceeding requirements of Substance Abuse
Prevention on a Public Works Project in place
The Bid Documents

 (continued):
 775 ILCS 5/1-101 et seq. form certifying that contractor shall
perform contract in compliance with all requirements of
Illinois Human Rights Act as well as all Federal and State laws
which prohibit discrimination in employment on the basis of
race, color, religion, sex, marital status, national origin,
ancestry, age, physical or mental handicap and all rules and
regulations promulgated and adopted pursuant thereto,
including having a 775 ILCS 5/2-105(A)(4) Illinois Human
Rights Act sexual harassment policy in place
The Bid Documents

 (continued):
 30 ILCS 580/1 et seq. form certifying compliance with Illinois’ Drug
Free Workplace Act
 Statement that Library, as a public body, is not subject to Retailers
Occupation Tax or any sales or use taxes and that contractors SHALL
NOT include such taxes in their bid
 Time of completion of the contract
 Statement that payments will be made in accordance with the Illinois
Local Government Prompt Payment Act
 Statement that contract will be awarded to lowest responsible and
qualified bidder
 Statement of qualifications (such as experience and references) that
will be considered in determining lowest responsible and qualified
bidder (see below)
The Bid Documents

Evaluating the Bids
 Determination of lowest responsible and qualified
bidder should be determined by considering bidder’s:
(1) References (past record of Library or Library
Trustees with bidder)
(2) Experience
(3) Ability to complete contract within time limits
All of this information should be requested in the bid
documents

The Illinois Prevailing Wage Act
(820 ILCS 130/1 et seq.)
What is it?
What is required?
Prevailing Wage Requirements

 The Act requires the payment of prevailing wages to all
“laborers, mechanics and other workers employed in any
public works … by any public body and to anyone under
contracts for public works”
 “Public works” means all fixed works constructed or
demolished by any public body, or paid for wholly or in part
out of public funds”
 “Construction” means “all work on public works involving
laborers, workers or mechanics” and “includes any
maintenance, repair, assembly or disassembly work
performed on equipment whether owned, leased or rented”

The Act applies to the construction of a new building, additions or
remodeling to an existing building, demolition projects and
maintenance of existing fixed works
Prior to 2007, prevailing wage requirements were regarded as applying
only to construction projects
In 2007, the Illinois legislature amended the Act to apply to
maintenance of public works thereby significantly broadening the Act’s
scope
The Illinois Department of Labor (IDOL), which administers the Act,
advises that any project that “REQUIRES A SCREWDRIVER” requires
the payment of prevailing wages

The IDOL has stated that:
1. Repairs and painting, changing of locks and removal of trees
require the payment of prevailing wages
2. Landscaping work requires the payment of prevailing wages if part
of a construction project, but not as part of ongoing maintenance
3. The Act does not apply to snow plowing, janitorial services, street
sweeping and tree trimming unrelated to a construction project
Contracts for annual maintenance of fixed items, such as HVAC, electrical
and alarm systems should be reviewed to ensure that they require payment
of prevailing wages

Public Employees Not Entitled To
Prevailing Wages
While not set forth in the Act, the Illinois Supreme
Court has held that public employees, including
Library employees, who perform functions covered by
the Act do not have to be paid prevailing wages
Bradley v. Casey, 415 Ill. 576 (1953);
Monmouth v. Lorenz, 30 Ill.2d 60 (1964)

Contractual Requirements
Public works contracts must state that prevailing wages must be paid by the
contractor
If a public works contract fails to state that prevailing wages must be paid by the
contractor, the local governmental entity may be required to pay interest penalties
or fines that would have been owed by the contractor if proper notice had been
provided in the contract (820 ILCS 130/4)
The IDOL may revise prevailing wages during performance of a public works
contract and the contractor is then required to pay the revised prevailing wage –
this should be noted in public works contracts and contractors should be advised
that rates are available on the IDOL website

Certified Payroll Requirements
The Act requires contractors and subcontractors to submit certified payroll
The IDOL provides a certified payroll form on its website. The form must include: workers’
names, addresses, telephone numbers, social security numbers, labor classifications, hourly
wages paid, number of hours worked and starting and ending time of work each day
Certified payroll must be submitted no later than the 10th day of each calendar month for the
preceding month
Accuracy of certified payroll, compliance with the Act and acknowledgment that falsifying
certified payroll is a Class A misdemeanor must be verified by signature
A public body must keep certified payroll for 5 years minimum after final payment
Certified payroll records are subject to FOIA, although employee names, phone numbers and
SSNs may be redacted as private information

Annual Ordinance
The Act requires public bodies, including local libraries and Library
Districts, to adopt annual prevailing wage ordinances or resolutions
Local libraries cannot “piggy back” on their “host” municipality
In June of each year, public bodies must:
(1) investigate and ascertain prevailing wages
(2)publish notice that a determination of rates has been made in a
newspaper
(3)post the determination at the Library and file a certified copy of the
ordinance or resolution with the Illinois Secretary of State and IDOL by
the following 15th of July

Questions or Comments?
Carmen P. Forte Jr.
cpforte@ktjlaw.com
312.984.6435
Kathleen M. Terese
kmterese@ktjlaw.com
312.984.6413
www.ktjlaw.com

ILA Library Conference - Oct 2016 CPF_KMT - Construction Projects (2).PPTX

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