# Union contractors



## McClary’s Electrical (Feb 21, 2009)

If it's state funded it will be prevailing wage, meaning a minimized non union contractor can bid it, but he must pay his guys union scale on that job.


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## Morales95 (Jan 15, 2015)

mcclary's electrical said:


> If it's state funded it will be prevailing wage, meaning a minimized non union contractor can bid it, but he must pay his guys union scale on that job.


So unions and non unions compete for the same project only in state level? How about federal and private projects?? I know private project the lowest bid is award the contract


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## eejack (Jul 14, 2012)

Morales95 said:


> So unions and non unions compete for the same project only in state level? How about federal and private projects?? I know private project the lowest bid is award the contract


They compete on all levels - non union has an advantage in some areas, union has advantages in others.

All contracts are lowest bid ( or lowest responsible bid ) awarded.


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## hardworkingstiff (Jan 22, 2007)

eejack said:


> All contracts are lowest bid ( *or lowest responsible bid *) awarded.


By responsible customers.


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## cabletie (Feb 12, 2011)

Morales95 said:


> Hi everyone, I've been around non union contractors as well as unions, I know some states are pro union but some non union contractor work in in federal projects as well as privates in those states. How that work? Unions contractors only work in state funded projects?
> 
> Thanks in advance.



When there is "public" money being used to fund a job the Davis Bacon act will apply. That will establish a prevailing wage, not a union wage.

"Public" money jobs have to take the lowest bidder as stated. All contractors can bid all jobs public or private. Non-union contractors actually have the upper hand bidding on prevailing wage jobs. the prevailing wage is usually lower than the local union wage with all the fringe benefits. There is also a un-enforced 10 apprentices to one journeymen ratio for the state. Our local is 3 journeymen to 1 apprentice, that is enforced.

There are two very large, federal, never ending projects right in the middle of New Jersey. Most of the projects awarded there go Non-union. The state laws and inspections have no effect on federal projects.

With private money the contractor has a better chance of selling his company. Sometimes a higher price than the lowest bid, is a better value to the customer. I think everyone on this site has mentioned that. My boss (Union contractor) said he does better with private money, as far as getting the contract, than with public money.


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## don_resqcapt19 (Jul 18, 2010)

eejack said:


> ...
> All contracts are lowest bid ( or lowest responsible bid ) awarded.


Most of the bid documents for private projects, that I see, reserve the right not to award to the lowest bidder.


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## danhasenauer (Jun 10, 2009)

cabletie said:


> When there is "public" money being used to fund a job the Davis Bacon act will apply. That will establish a prevailing wage, not a union wage.
> 
> "Public" money jobs have to take the lowest bidder as stated. All contractors can bid all jobs public or private. Non-union contractors actually have the upper hand bidding on prevailing wage jobs. the prevailing wage is usually lower than the local union wage with all the fringe benefits. There is also a un-enforced 10 apprentices to one journeymen ratio for the state. Our local is 3 journeymen to 1 apprentice, that is enforced.
> 
> ...


Very well said, excellent explanation. The Union shop I work at tries to sell itself as a "value-added" contractor, "you get a little more for the same price", which usually means we just clean up real good when we're done, and train the customer on how to use the new stuff we just installed for them. This doesn't really add anything to the final job cost, but sticks in that customer's head, *Special Attention To Them*. We did $11Mil 3 years ago, $21Mil the following. '14 numbers aren't in yet, but it's the dead of Winter and we still have 30 guys working.


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## sparky970 (Mar 19, 2008)

eejack said:


> They compete on all levels - non union has an advantage in some areas, union has advantages in others.
> 
> All contracts are lowest bid ( or lowest responsible bid ) awarded.


Not always, we get plenty of jobs where we're not low bidder.


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## eejack (Jul 14, 2012)

don_resqcapt19 said:


> Most of the bid documents for private projects, that I see, reserve the right not to award to the lowest bidder.





sparky970 said:


> Not always, we get plenty of jobs where we're not low bidder.


Hence the lowest responsible bid note.

Heck there are exceptions to everything - but in broad strokes jobs go to the lowest bid - union or non union. Sure - some jobs never get bid, some contractors always hire other contractors, some low bidders are excluded due to bonding issues, the list goes on, but I wager 90% goes low bid.

( in before someone decides to say 85% :laughing: )


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## don_resqcapt19 (Jul 18, 2010)

eejack said:


> Hence the lowest responsible bid note. ...


Most of the private bids around here, you get a bid invite...if you are not a responsible bidder you don't even get to bid the job.


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## eddy current (Feb 28, 2009)

And sometimes it doesn't matter if your bid is low or high, the ec that just bought the customer a new boat gets the job ;-)

Of couse that isn't true. All jobs are awarded fairly and legally


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