December 5, 2012

Mayor Emanuel Announces Three Demolition Companies Have Been Suspended From Bidding on City Business For Failure to Meet Contract Requirements

All Three Businesses Declared “Non-Responsible” as Part of Mayor’s Zero-Tolerance Policy on Contracting Abuses

Mayor's Press Office    312.744.3334

Three demolition companies that had been participating in City demolitions have had their bidding privileges suspended in full, until further notice, after the City discovered that the companies failed to meet contractual requirements set forth by the City of Chicago.

“I have no tolerance for bad businesses of any sort, particularly those that do not honor the very specific requirements set forth in the City’s contracts with them,” said Mayor Emanuel. “There is no place for these business practices in Chicago and we will only work with companies that conduct themselves responsibly and honestly with their employees and the taxpayers. When a company violates their contract, my administration takes immediate action.” 

At Mayor Emanuel’s direction, the City continues to send inspectors out to construction project sites to ensure that the City’s contract requirements are being met. 

The three demolition companies were identified by unions as not paying the legally-required prevailing wage. The City’s Department of Procurement Services (DPS) immediately began an inquiry into these allegations, in conjunction with the Department of Buildings and the Law Department.

A letter was sent to Spirit Wrecking and Excavation last week informing the company it was being held as “not responsible.” Today, letters are being sent to General Wrecking and All-Time Wrecking and Hauling with the same finding. These demolition companies are part of the demolition pre-qualified pool. When any demolition contract opportunity comes up, the City goes straight to the pre-qualified pool and members of the pool submit their bids.  The lowest bidder gets the job.  The finding that these three companies are “not responsible” means that all of their bidding privileges are suspended until further notice.

It is now incumbent on these companies to demonstrate that they are fully meeting contractual requirements, or else they face debarment and expulsion from the pre-qualified pool.