Legislation to Mandate Bid Specs for Public Construction Contracts On Deck

The House is considering legislation – HB 4694 – which would prevent a public agency from entering into a construction contract unless the contract contains bid specifications that meet certain requirements. The person who writes the bid specifications could not be an employee or representative of a manufacturer of any material to be used during the construction contract. The bid specifications must specify performance standards for the materials to be used. The bid specification says bids do not require the specified manufacturer of a material, which is listed only to denote the performance standard for the material, and that equivalent materials are acceptable. 

This legislation, along with a bill for schools – was considered by House committee once already. Sponsor Tom McMillan (R-Rochester) met with the League to discuss our objections. He said that he knows of instances where contractors lobby elected officials (using gifts, meals, etc) and convince them to use certain goods and services with a single-source bid.  He does not like this and is pushing this legislation.  I told him that this is not a prevalent practice, and that the League supports ethics standards…but that this legislation would cost locals more money because of the new hoops that people have to jump through.

We presented him with information regarding how this will hamper innovation because companies make new things that only they can provide specs for.  Communities also utilize replacement parts that are standardized with the existing parts (especially in hostpric and rehabilitated buildings).  

He understood several of these issues.  He is planning to narrow the bill to only apply to newly built buildings.  He also said that the Act only requires this for bids of $30,000 or more, and he will stick with that.  Also, he is willing to strengthen the parts of the bill that say that sole source bids can be used where it is impractical or impossible to have multiple bids.  Finally, he is willing to add language ensuring that the contractors and architects are licensed. 

We will continue to work with Rep. McMillan to make this bill workable for communities and not cost them more or cause more unnecessary bureaucratic hurdles. It seems that this legislation will be moving in the Fall.

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.