University of Wisconsin–Madison

Do Responsible Contractor Policies Increase Construction Bid Costs

Type Article
Year 2014
Level City or Town, County
State(s) All States, Ohio
Policy Areas Economic Justice, Finance & Procurement
Local government procurement policies can require that public contractors provide health and retirement benefits to their workers. However, skeptics of such "responsible contractor policies" argue these approaches inflate project costs. This study examines the impact of responsible contracting policies on public school construction projects in Ohio and finds that while they may provide workers with health insurance, contribute to their pensions, and offer training opportunities, these policies do not substantially increase construction costs.

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