By: Sean F. Darke, Esq.

As the economy continues to crumble, more and more contractors are attempting to bid and perform work in the public arena. With that decision, contractors become confused when trying to make sense of the numerous laws that they are responsible to follow and the harsh penalties that could result by any missteps. The purpose of this article is to make contractors aware that when motor fuel tax funds are used in the public projects, the contractors must comply with additional requirements set out by the Illinois Department of Transportation (IDOT), specifically the Responsible Bidder requirements.

Contractors must first understand that the majority of public work projects that are funded with public funds must comply with the Illinois Prevailing Wage Act (IPWA) or the Illinois Procurement Code (IPC). When dealing with the payment of wages, these laws are enforced by the Illinois Department of Labor, but when the public project uses the motor fuel tax funds, the Illinois Department of Transportation has additional authority to make sure contractors are considered so called "responsible bidders." In order for the contractors to be a responsible bidder they must comply with numerous requirements, which includes participation in an applicable apprenticeship and training program approved by and registered with the United States Department of Labor.

It is this apprenticeship and training program that IDOT is beginning to attack and investigate contractors throughout the State of Illinois. Contractors who are performing public work projects that contain motor fuel tax funds must make sure they are in compliance with the responsible bidder requirements, specifically the apprenticeship and training program. Otherwise, the contractor risks being suspended from performing any public project that uses motor fuel tax funds, if they are not participating in an applicable apprenticeship and training program approved by and registered with the U.S. DOL. It is this hidden risk in the apprenticeship and training program that IDOT is now attempting to exploit at the contractor's detriment.

Contractors must discuss the responsible bidder requirements with an attorney to fully understand the requirements and how IDOT is looking to suspend contractors who they believe are not incompliance. Contractors must take the proactive approach to be incompliance or risk being suspended from performing any public works using motor fuel tax funds.

Questions? Please contact Sean F. Darke a Wessels Sherman Shareholder and Senior Attorney at (312) 629-9300 or sedarke@wesselssherman.com.