23-02 Responsible Contractor Policy

  1. Purpose
    1. Wayne State University is committed to having responsible and ethical contractors and subcontractors on all of its construction projects, to ensure that work is performed by responsible, qualified firms that maintain the capacity, expertise, highly trained personnel, and other qualifications and resources necessary to successfully perform University projects in a safe, timely, reliable, high quality and cost-effective manner.
    1. To achieve that goal, the University will require contractors and subcontractors submitting a bid on a construction project to provide information relating to their qualifications. The purpose of this policy is to assist the University in awarding contracts on every construction project to the lowest priced responsible bidder, or in the case of a major construction project using a criteria-based award, the responsible bidder who provides the best value to the University.
  1. Definitions
    1. A “major construction project” is a construction or other real property improvement or maintenance project whose planning and implementation require Board of Governors approval under Board Statute, “Capital Outlay”.
    2. The term “contractor” includes general contractors, trade contractors, construction managers, and design builders, as well as any subcontractors.
  2. Policy
    1. Contractor Qualifications

The University will obtain information from and about the contractors on its major construction projects. Depending on the extent of the University's prior experience with a contractor, that information may include:

  • The contractor's experience on projects of similar size and complexity.   
  • References from other owners.  
  • The contractor's creditworthiness/financial condition.  
  • The contractor's and any subcontractor’s safety records and prior history of OSHA/MIOSHA, environmental, or other regulatory violations, discrimination claims, criminal convictions, liens, compliance with applicable laws, and litigation (including arbitrations) with owners, contractors, subcontractors, unions, or employees.  
  • Qualifications of management and supervisory personnel to be assigned by the contractor to the project.
  • Access to labor necessary for contract performance.
    1. Contract Specifications

Contracts for the University's major construction projects will include terms requiring:

  • Compliance with all applicable health, safety and environmental laws and regulations during performance of the contract, and timely provision to the University of copies of any complaint or allegation of a violation of any such regulation, and of any accident report, relating to work performed under the contract.  
  • Contractors and subcontractors to maintain and make available to the University, upon request, documentation of compliance with the University’s Wage Rate Requirements (University Policy 18-2) and/or other applicable wage rate requirements, including certified payroll reports and complete payroll records.
  • Training for all workers assigned to perform work under the project, including any required OSHA/MIOSHA training. 
  • Registration of apprentices in bona fide training programs.
  •  Contractors and subcontractors to implement and take steps to enforce a requirement that workers on the project be drug and alcohol free on the job site.
  • Promotion of work force and contractor diversity to the fullest degree permitted by law, including prohibition of illegal discrimination and violation of any applicable University policy regarding discrimination.
  • Promotion of competition through small business development, by encouraging opportunities for qualified new and small businesses, including those owned by women and minorities, to participate in work under the contract, as contractors, subcontractors, and suppliers.
  • Contractors and subcontractors to carry appropriate liability insurance in amounts established by the University's Enterprise Risk Management & Insurance Programs office; to comply with Michigan law on worker's compensation; to provide bid, payment, and performance bonds for the completion of the contracted work; and to maintain these coverages through the period specified by the Enterprise Risk Management & Insurance Programs office.
  • Compliance with licensing requirements applicable to those assigned to perform work under the contract.
    1. Work Force Management

On its major construction projects, the University will seek evidence that each successful contractor is able to furnish skilled tradespersons and laborers (a) in numbers sufficient to complete the work under the contract on a timely and cost effective basis, and (b) who are able to work in harmony with the employees of other contractors or subcontractors performing work on that project in order to achieve its completion on a timely and cost effective basis. 

In that regard, the University will not discourage a contractor from entering into a project labor agreement (PLA) for a construction project at the University when the contractor determines that a PLA is allowable under applicable laws and will enhance its ability to perform the work on the project. Further, the Senior Vice President, Chief Financial Officer and Treasurer is authorized to require the successful contractor to enter into a PLA when doing so would advance the University’s project-specific interests in cost savings, efficiency, timeliness, or quality and would promote the University’s goals set forth in this policy. The Senior Vice President, Chief Financial Officer and Treasurer should not require a contractor to enter into a PLA on any project or part of a project when doing so would violate applicable laws or would unreasonably restrict competition in the contracting or subcontracting process.

4. Duration

    1. This university policy is revocable by the president at any time and without notice.

5.  Effective Date

    1. This university policy is effective upon issuance.         

Signed by President Kimberly Andrews Espy, December 12, 2023.