Opportunities for Work, Improvements in PBC Construction Contract, and Procedures


Dear Subcontractor:

The PBC would like to advise you of upcoming opportunities for work at the PBC. The letter also summarizes: 1) improvements the PBC has made to its construction contract documents and procedures to benefit Subcontractors, and 2) information on MBE/WBE certification.

General Contractors have recently been pre-qualified to bid on upcoming construction work. Projects include Elementary Schools, Fieldhouses, Senior Satellite Centers and Campus Parks. A listing of all pre-qualified General Contractors listed by project type can be found at https://pbcchicago.com/subhtml/prequal.asp. The PBC encourages subcontractors to reach out to these General Contractors in advance of the release of the invitation for bids to begin establishing a working relationship.

PBC Alerts – Subcontractors should sign up to receive PBC Alerts which will notify you of bid opportunities along with other important information. Sign up at https://pbcchicago.com/subhtml/subcontractor_alerts.asp.

The PBC has made significant improvements to its construction documents and procedures over the past few years to benefit sub-contractors:

PBC Construction Contract Improvements

Prompt Payment of Monthly Payment Estimates
The PBC is committed to making prompt monthly progress payments, to the General Contractor after the agreed upon and complete payment estimate is received. Over the past year we have been making most payments with 21 days of our approval of a payment estimate.

Please view the PBC 2007 General Conditions on our website. These requirements are found in General Conditions Section 16.09, Prompt Payment To Subcontractors, on pages 58-59. On the website, go to “Building with the PBC,” “Download Forms,” then “Book 2 Standard Terms and Conditions for Construction Contracts.”

Payment of Retainage To Subcontractors
In addition, the General Conditions require the general to pay the full amount of retainage to a subcontractor when that subcontractor has “satisfactorily” completed its work and provided all deliverables. The subcontractor does not have to wait for project close out to receive the retainage. Stated another way the general has to “front” the retainage to the subcontractor, when the subcontractor completes its work and provides all deliverables.

In addition, less retainage is held from the general contractor and therefore less will be held from the subcontractors by the general contractor. Retainage will be reduced from 5% to 3% at 75% project completion and from 3% to 1% at substantial completion. Finally, 1% will be returned at project close out. These provisions are found in General Conditions Section 16.06 and 16.08, pp. 57-58.

Payment for Changed Work and Claims
The PBC is committed to make timely payment for changed work. Over the past year, the PBC has paid for agreed upon Change Orders within 60 days of the Change Order being reported to the PBC Administrative and Operations Committee or approval at the PBC Board Meeting.

MBE/WBE Certification

The PBC is committed to increasing the participation of minority-owned and women-owned businesses in the construction of public facilities. The PBC recognizes MBE and WBE certifications from the following agencies; City of Chicago, County of Cook, Metropolitan Water Reclamation District, Chicago Minority Business Development Council, Central Management Service of the State of Illinois, METRA and Women’s Business Development Center.

If your business qualifies as an MBE or WBE-owned business, apply for certification with one of the above listed agencies, or, if already certified, verify that your certification is current.

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