Chicago asks all its contractors, including construction projects, which reduce 3% of the cost of contracts and invoices signed for the job sent to the city for the next 12 months.
The letter, which was sent by email to the contractors on the week of March 16, is by Sharla D. Roberts, the hiring chief of the Chicago Contracting Services Department, and is considered effective from the date on which it was received.
Ask contractors to respond by email at the latest five days after receiving the letter indicating the reduction in prices that would be willing to provide Chicago by virtue of current contracts.
The letter states that “at the moment difficult economic times, the city of Chicago faces new challenges to reduce its costs and assign resources so that it can more with less guaranteeing the provision of services to its citizens.”
Brian Helm, President and CEO of Mechanical Contractors Helm Group, said that his company had received the letter, but did not reduce the cost of his contracts because “they were competitively offered and the contract was awarded.”
“It is unusual to ask to reduce the cost of the contract without changing the reach,” he said, adding that it is not “unfair to ask the city, but it is unfair that the city approved a contract and then requests 3%.”
In addition to reducing the scope, he said that if the city wants to reduce costs, it has another option.
“They have other levers to throw. They can finish their contacts,” he said. Helm Group is currently working on two projects for the city, including one at a water pumping and another at O’Hare International Airport.
Sheila Marionneaux, director of the city’s public affairs, said he sent 1,300 letters and has so far received a 30%response. Marionneuauux said that he has no information on the number of contractors in the city, including those of the construction who had accepted a reduction in costs or not.
“All the answers are currently evaluating and analyzing,” he said, adding that the city hopes to receive most of the answers on March 21.
He said the reduction request was made because the city is in the process of adjusting its newly approved budget.
“The calendar of the letter is in accordance with the publication of the approved budget modification of the City Council,” he said, adding that this was not an unheard of request.
“The city has implemented costs reduction initiatives in the past by virtue of two previous administrations,” he said.
The city passed a budget of $ 17.1 million for 2025 in December. A budget modification proposed by $ 139 million is currently proposed to pay obligations, including feathersPayments for ions for non -teaching staff such as directors and cafeteria workers in Chicago public schools. Chicago Mayor Brandon Johnson was supported by the last mayor’s elections for Chicago Teachers’ Union.
Although the letter to the contractors states that “the city will always try to do business with vendors that offer the most competitive rates,” Helm said if a contractor could prevent him from working for the city based on how they respond to the letter “is a legal matter.”
Another contractor who received the letter and requested not to be identified, called the “very problematic” request.
“Because professional service contracts are selection -based prizes, the implications of requesting/demanding a credit site are disturbing,” the contractor wrote.
