UNDERSTANDING THE ISSUE

What Is the Separations Act?

A century-old Pennsylvania law that mandates a single, rigid construction delivery method for every public project, regardless of size, complexity, or need.

A Law from 1913

The Pennsylvania Separations Act requires public institutions to seek separate bids from at least four different prime contractors for every public construction project. These separate packages cover general construction, electrical, plumbing, and heating/air conditioning.

This approach is known as a “multiple prime” delivery system. Rather than hiring one general contractor to manage the entire project, public owners are forced to coordinate four independent companies, none of which may have worked together before.

The Key Issue

The problem is not that multi-prime exists as an option. The problem is that it’s the only option. Pennsylvania mandates its use while 47 other states, the federal government, and the private sector all choose from multiple delivery methods based on project needs.

The construction industry has evolved dramatically since 1913. Methods like design-build, construction manager-at-risk, and integrated project delivery have proven to save time and money while improving quality. Pennsylvania law prevents public institutions from using any of them.

Who Does This Hurt?

Contractors

In a single-prime system, general contractors work with subcontractors they trust. Multi-prime forces strangers onto the same project with no established working relationships, leading to communication breakdowns.

Project Owners

Public institutions become de facto general contractors, managing four separate companies simultaneously. Most lack the experience for this, leading to cost overruns and delays.

Workers

Four prime contractors competing for hours creates jurisdictional disputes on the job site. Without clear delineation from a single coordinating entity, confusion is inevitable.

Taxpayers

Artificially low bids on bid day lead to change orders that erase any alleged savings. Delays compound costs further. The public pays for every dollar of inefficiency.

How Construction Delivery Has Evolved

The world did not stand still after 1913. Modern construction offers proven methods that Pennsylvania’s public sector is locked out of.

1913: Separations Act Enacted

Pennsylvania passes the law mandating multi-prime bidding for all public construction projects.

1960s: CM Emerges

The construction management model begins gaining traction as an alternative to traditional methods.

1990s: Design-Build

Design-build becomes the fastest-growing delivery method in the United States, offering single-source accountability.

2000s: IPD Arrives

Collaborative methods like IPD and CM-at-risk gain adoption across the country. Pennsylvania remains locked into 1913.
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What Reform Looks Like

Reforming the Separations Act does not mean eliminating multi-prime bidding. It means giving public institutions the flexibility to choose the delivery method that best fits each project.

A school district building a new elementary school should be able to use design-build. A university renovating a lab should have the option to hire a construction manager-at-risk. A municipality repairing infrastructure should be free to use integrated project delivery.

The multi-prime bidding system should be one of many choices available. Not the only one mandated by a law that predates commercial air travel.

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Help Modernize Pennsylvania

Join the growing coalition of organizations and individuals pushing for sensible reform.