The City of Detroit does not currently demolish houses itself. Instead, the City hires contractors through a competitive-bidding process. The vast majority of Detroit demolition contracts are awarded to Detroit-based or headquartered companies.
Here's how the contracting process works
The Detroit Land Bank Authority (DLBA) releases packages of houses scheduled for demolition, and contractors are invited to bid on the work. The packages range from 1 house to over 100 houses. They also include information on the size of the houses and any necessary asbestos removal. That way, both small start-ups and large companies have all the information they need and the opportunity to be part of Detroit’s demolition program.
The bidders are scored based on the following criteria:
- Capacity (who can handle the workload).
- Whether the company is based or headquartered in Detroit.
- Price per bid (who is the lowest bidder).
Demo program provides opportunity for Detroit-based and minority-owned companies
The Detroit Land Bank Authority will continue to encourage and support local contractors and use an open and competitive bidding process to secure the most qualified contractor to complete the work for the lowest cost. With a higher volume of demolitions, the DLBA hopes to secure competitive pricing and provides incentives for locally-based contractors.
Since the beginning of the program, $74 million in contracts have been awarded to Detroit-based companies and more than $20 million in contracts have gone to black and minority owned local firms, including Rickman, DMC, 313 Construction and others.