RCO's - Responsible Contractor Ordinances
Local construction unions have created what they call a “responsible contractor ordinance” (RCO). They promote RCO’s allegedly to protect taxpayers from contractors who are unqualified or who have not adequately trained their employees. While portions of the RCO’s are reasonable, the portions dealing with training preclude virtually all open-shop contractors from working on public construction projects. The sole purpose of these ordinances is to insure that only union contractors are permitted to work on public construction projects. SEPA believes that RCO’s are discriminatory and drive up the cost of public construction by limiting competition. SEPA has been actively engaged in opposing the adoption of RCO resolutions and ordinances in our area.
What is a Responsible Contractor Ordinance (RCO)?
A good RCO seeks to maintain a level playing field while protecting the public from inferior contractors by asking for and obtaining relevant information about their qualifications and does not arbitrarily exclude qualified contractors.
Who is promoting a discriminatory Responsible Contractor Ordinances (RCO's) in our area?
Mr. Gerard Waites, Esq. of O’Donoghue & O’Donoghue, a Washington, DC law firm that represents the Building Trades Unions crafted this ordinance and is traveling around the country promoting them. Along with Mr. Waites, unions associated with the AFL-CIO from Philadelphia and New Jersey are supporting RCO’s which will exclude 75% of area construction employees from working on public construction projects.
Why is the AFL-CIO promoting RCO’s?
On the surface, RCO’s look like a reasonable effort to protect local communities from contractors and subcontractors who do not perform up to their standards. Once you examine the details of the ordinance, it becomes apparent that the real purpose is to insure that only union contractors can meet the criteria drafted by the unions because only they run the type of apprenticeship programs that meet the criteria of these ordinances.
Why is requiring a union apprenticeship program unnecessary?
The apprenticeship training programs conducted by the unions and required in RCO’s are based on what many in construction believe to be an archaic model established back in 1937.
Why do many feel union apprenticeship programs are outdated?
Today there are many alternative avenues that provide a quality construction education, such as technical high schools, community colleges, trade and technical schools and colleges and universities offering craft education. Most construction employers today use in house outcome based training programs that allow employees to learn at a rate based on their ability rather than an arbitrary time line.
Will union-backed RCO’s result in increased construction costs?
Yes, for a variety of reasons:
- Reduced competition on public construction projects will = Increased construction costs
- Additional administrative costs associated with RCO procedures
- It will take longer to select contractors, thus delaying the time required on public construction projects
Where has this union sponsored RCO been passed?
- Bucks County
- Falls Township
- Lower Makefield Township
- Middletown Township
- Lower Southampton Township
- Delaware County
- Delaware County Council
- Tinicum Township
- Montgomery County
- Norristown
- Conshohocken
What can you do to oppose such ordinances?
Contact the Supervisors in your community if it is listed above and tell them you oppose RCO’s because they are costly to taxpayers, discriminatory against the majority of contractors and their employees who are open shop and just plain un-American.
What is ABC and why is it fighting against RCO’s?
ABC is a national construction trade association with 24,000 members across the country. The Southeast Pennsylvania Chapter represents 475member companies in the Greater Philadelphia region. ABC is committed to Free Enterprise, Merit Construction and open competition, regardless of union affiliation. View our National website for more information.
How can ABC help you?
- We can serve as a resource for information on Merit Construction, Educational Choice and Free Enterprise
- We can provide credible and knowledgeable speakers who will educate your group about RCO's.
- Write to RCO@abcsepa.org to ask questions. All answers will be posted to this website.
- Check back often for up to date information on RCO's.
Below are some questions we have already received:
Is this a union verses non-union issue?
No, ABC believes that all public construction work should be awarded to the lowest responsible bidder without regard to union affiliation. ABC also believes that every employee has a right to join a union if they so desire.
Does ABC have a state and federally approved Apprenticeship Training program?
Yes, ABC has operated a state and federally approved apprenticeship training program since 1982. There are currently more than 300 employees enrolled in our program. While many ABC Members elect to enroll their employees in this program, many opt to conduct their own state-of-the-art, in-house training programs. As a believer in Free Enterprise, ABC knows that traditional apprenticeship programs are not the only way to train craft professionals in our ever-changing construction environment.
What other methods insure that responsible contractors are selected to perform public construction work?
Contractors who bid on public work must secure bonding as a prerequisite to performing work on a public construction project. In order to secure bonding, a contractor must demonstrate that they are financially sound, operate safely and have a proven track record of performing construction work.
Contact us:
Associated Builders & Contractors
Southeast Pennsylvania Chapter
430 W. Germantown Pike
East Norriton, PA 19403
phone: 610-279-6666
fax: 610-279-7052