Traditionally, public agencies have awarded construction contracts via the “lowest responsible bidder” procurement method, where bidders submit sealed bids and contracts are awarded to the lowest responsible bidder. However, a number of governmental entities have started to award contracts through “best value” procurement, which looks at factors other than price. Quality, experience, and expertise of the bidders also are relevant considerations when selecting contractors or vendors under a “best value” procurement format.

Following the trend, on May 16, 2017, Philadelphians approved a ballot measure that amended the City’s Home Rule Charter to allow the City to award certain contracts based on the “best value” standard, in addition to the “lowest responsible bidder” approach. Shortly thereafter, on July 27, 2017, the City issued regulations governing the award of contracts based on the “best value” method.
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On January 23, 2017, Philadelphia Mayor Jim Kenney signed into law a wage equity ordinance that makes it unlawful for an employer in the city of Philadelphia to ask about the wage history of a prospective employee at any stage of the hiring process. Under the new law, an employer may not condition employment on the job candidate’s disclosure of their wage history (which includes fringe benefits) or refuse to hire a candidate because of their refusal to respond to an inquiry about their past wages. The ordinance also prohibits employers from relying on a candidate’s wage history in order to determine the amount that it will offer a candidate unless the candidate has “knowingly and willingly” disclosed such information to the employer during the hiring process.
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The City of Philadelphia has issued new code requirements for construction worker safety training. The new rules went into effect on October 1, 2015, and the Department of Licenses and Inspections has announced that strict enforcement will begin on April 1, 2016.

Under the new regulations, all contractors and employees (including subcontractors) performing construction or demolition work in the City of Philadelphia for which permits have been issued are now required to complete OSHA 10 safety training, or an approved equivalent. This requirement applies to all trades, as well as state-registered home improvement contractors. Workers are required to carry written proof establishing that they have completed an OSHA 10 training course while on the job site, and their employers must also maintain on-site proof of completion for each worker. This information must be furnished to the Department of Licenses and Inspections upon request. The OSHA 10 training is only required to be completed once and does not expire.

Additionally, all contractors licensed under Section 9-1004 of the Philadelphia Code must employ at least one supervisory employee who has completed OSHA 30 safety training, or an approved equivalent, within the past 5 years. Construction or demolition of major buildings requires continuous oversight by a site safety manager who has completed an OSHA 30 course. The designated site safety manager must carry an identification card or certificate of completion issued by the provider of the OSHA 30 training course.


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Please join us for Ed Seglias‘ presentation at the Design-Build Institute of America Tri-State Chapter Inaugural Event on October 6, 2015 in Philadelphia. Ed and Kevin Peartree of Ernstrom & Dreste will discuss and compare form contracts commonly used in Design-Build Projects including AIA, Consensus Docs and EJCDC Design-Build Forms. Their discussion will highlight

Mayor Michael Nutter recently announced that construction will move forward on the proposed $70 million Mormon Temple.

The temple is expected to open in 2013 and the proposed location is 18th and Vine Streets.   While the temple’s opening will be historic moment for the Mormon community, its construction is significant to the Philadelphia community.