Responsible Contractor Policy
The CalSTRS Responsible Contractor Policy seeks to monitor the use of labor in the development and management of real estate investments. The goal is to insure that pension fund capital is funding projects that pay a fair wage and benefit for all work and services related to the construction and management of the assets.
“Fair wage and benefit” is predominantly defined by comparison of the work to similar commercial projects in the local market. A limited number of state and local pension funds utilize similar policies. CalSTRS Real Estate Investment Office has overseen this policy since its inception in the 1990s and has been very successful in reaching goals with participation at almost 100 percent by respective real estate managers.