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Welcome to our newsletter! You will find important updates and industry related news, along with upcoming speaking events and educational opportunities. Thank you for your interest in CCMI.

Deborah Wilder
CCMI President 

The Problem is: “I Don’t Know what I Don’t Know”

This is the comment I get most often from Public Agencies. The Agency personnel know something about prevailing wage requirements, but are oftentimes not knowledgeable on the details, rules, regulations or exceptions that play into prevailing wage compliance. Some agencies are charged by the State or their governing Board to create and implement a Labor Compliance Program, but are lost as to the intricacies or protocols that need to be put into place.

In California, CCMI routinely comments on regulations and rulemakings. CCMI comments on changes to regulations, forms and protocols. It was CCMI’s input which simplified the PWC-100 form into a one page document instead of several documents. Our comments are considered and valued by the State because of our decades of experience in the field.

When Montgomery County Maryland’s governing Board implemented its own Labor Compliance Program in 2009, it was CCMI who suggested protocols and forms and options for the implementation of that program, including contractor report documentation and contractor appeal rights.

This is the first of two articles on some of the best practices a Public Agency can implement to have a streamline and organized Labor Compliance Program (LCP).

Find Your Expert.  First, find yourself a knowledgeable person/company to assist you with this process. Paying for expert advice is far better than muddling through and finding out the program is noncompliant or incomplete. Having a knowledgeable resource will also make information exchange faster than you having to research every issue.

Assemble your team. Figure out what different team members you need for the various aspects of the program. Will there be someone in charge of contracts and a different person in charge of payroll collection and review? Will a different person or department be involved if funds have to be withheld from a project? If the contractor decides to appeal a ruling the agency makes, which person/department will handle that?

Research and Garner Your Resources. There are tools in the field that can help you and make your labor compliance program streamline and more efficient. My favorite tool is LCPtracker. This is an electronic web based system which securely collects certified payrolls (CPR) and other labor compliance documentation needed for a project. I cannot tell you the hours that CCMI saves by having all of the payrolls and documentation available in one place and in the same format.. The amount of time saved from chasing hard copy documentation is invaluable. And, LCPtracker has other options including: local hire reports, daily reports and more. Use this technology to help you be the most efficient you can be. The cost of LCPtracker is offset by the time staff saves from having to chase hard copy payrolls and documentation.

Bids and Contracts. Find out if any of the funding sources of the project trigger any special contract prevailing wage terms or provisions in the bid solicitation. If there are federal funds in the project, specific contract language and the federal wage determination must be included. If your State or local agency mandates prevailing wage, there is usually mandatory bid or contract language required. Be sure to include the obligation of contractors to submit payroll through LCPtracker or other electronic payroll system the Agency decides to use. Also be sure to include a provision that progress payment and/or final payment can be withheld if the labor compliance documents are not timely submitted or are not complete and correct.

Post Bid, Pre- Award Process. First, you need to determine if the contractors who bid this project and any listed subcontractors meet all the pre-award requirements. And, there are nearly always pre-award requirements. Certainly, contractors cannot be debarred from performing prevailing wage work. The federal government has a debarment list- referred to as the “excluded parties” list. The list cross references company names with principal owner of the company. Many states also have a debarment list. Some states have contractor registration requirements for public works projects. Many states have contractor licensing requirements which must be met before contract award. Make sure all the post bid/ pre-award requirements are met.

Preconstruction Conference. Reviewing the labor compliance requirements at a preconstruction conference is always a good idea. What is probably a better idea is to have a separate labor compliance meeting for the project. This is because it is not the workers on the jobsite or their supervisor who is submitting the CPR and labor compliance documents. A meeting or better yet, a mandatory zoom meeting to review these obligations with convey the information to the right party and make sure that all the contractors on the project understand what the expectation will be.

Stay Tuned- Part 2 will be in the next newsletter edition.

California Public Agencies consider signing up for our 2 hour webinar on prevailing wage basics on September 14, 2021

Upcoming Training:

Prevailing Wage Basics for Public Agencies is currently being planned for September 14th from 9-11 a.m. via Zoom. Please see our website for more details and to submit payment: http://www.ccmilcp.com/store.html

The U.S. Department of Labor’s Wage and Hour Division (WHD) will offer compliance seminars for contracting agencies, contractors, unions, workers, and other stakeholders to provide information on the requirements governing payment of prevailing wages on federally funded construction and service contracts. While in person training is always best, those will not be returning until at least 2022. Seminar attendance is free, however registration is required. Participants may register at https://www.eventbrite.com/e/department-of-labor-virtual-prevailing-wage-seminar-tickets-161236758485.

CSDA Annual Meeting August 30-September 2 Monterey, California. Stop by our Exhibit booth August 30th and 31st . To register go to www.csda.net

League of California Cities Annual Meeting Sacramento, California September 22nd and 23rd. Stop by our booth at the Exhibit Hall.
Want to schedule your own prevailing wage workshop?
We will customize a workshop or webinar for you and your Agency/Company. Contact us at: info@ccmilcp.com 
LCPtracker Ignite Conference
Register now and join compliance industry experts, contractors, and government personnel from cities and counties at the most comprehensive and intensive Davis-Bacon and prevailing wage training and education conference. The Ignite Conference is scheduled for November 15-17 at the Loews Coronado Hotel. To register, go to:https://lcptracker.regfox.com/ignite-2021 

Deborah Wilder will be speaking at 7 different sessions.
What Every Contractor Should Know About Prevailing Wages, 3rd Edition.
Available through www.ccmilcp.com $45 inclusive of tax and shipping.
FROM THE INBOX....You asked, we answered!
QUESTION: We are a Special District and have concerns. The Kaanaana v Barrett has expanded prevailing wage to ALL contracts, not just construction contracts. It seems like nothing is being done to correct this, what are my options?
ANSWER: The California Supreme Court was very broad in its ruling, so your interpretation that potentially ALL contracts entered into by a special district could be subject to prevailing wage is correct. However, that interpretation also is contrary to over 90 years of prevailing wage practice that has typically restricted prevailing wages to construction, maintenance, repair or services to buildings or land.  

The DIR is currently taking a very narrow approach and is currently soliciting wage surveys for those engaged in the recycling industry. The thought is that the California Legislature will make a small amendment to the Labor Code Section and resolve the issue. The reality is that a majority of the members of the legislature on the Labor Committee have strong ties with organized labor so some discussions with the building trades and other unions need resolution before an amendment can be obtained. Contacting your member of the California Assembly and Senate about this issue is critical.
Many Special Districts are ignoring the ruling in Kaanaana v Barrett hoping that they can skate under the radar until a legislative fix occurs. Other Districts are being a little more proactive and are asking the Director of the Department of Industrial Relations for a special wage determination for some of their contracts currently going out to bid. These are issued on a project by project basis. CCMI can help any District who wants to take this approach. Stay tuned as CCMI is watching this process very closely and will include updates in its monthly newsletter.

Feel free to send your questions to info@ccmilcp.com
CCMI is not just another firm....

We are not merely a "consulting" firm, but rather a team of individuals who understand the needs of the Public Entity and contractors to "get the project done." Our staff includes retired contractors, auditors, attorneys and industry veterans.