Having trouble viewing this email? Click Here
Hi, just a reminder that you're receiving this email because you have expressed an interest in Deborah Wilder, CCMI. Feel free to unsubscribe if you are no longer interested or have received this email in error. Thank you!
You may unsubscribe if you no longer wish to receive our emails.
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 

Locking in Wage Rates for a Public Works Project

Each state and the federal government have a specific date and time which locks in the prevailing wage rate for a project. For federally funded project under the Davis Bacon Act the wage rate locks in on a typical bid/build project on the day the bid is opened so long as the official award of the project is within 90 days of that bid opening. If the award is more than 90 days from the bid opening, then an updated wage determination is to be used and the awarding agency will need to issue a change order to compensate the contractor for any increase in the wage determination affecting their workers.

For Housing projects, the wage determination locks in based on the “close” date of the funding.

In California the wage rates lock in on the first bid advertisement date. That is the first date the project is advertised to the public. If there is no bid advertisement date, then use the first date a written bid is submitted, the first date a written solicitation is issued by the agency, the date the contract is signed or the first day work commences, whichever come first. Remember that the wage rate will lock in along with the mandated increases that are published with that determination.

Upcoming Training:

Please contact the various trade association to sign up to attend the training. Cost may vary.

January 9, 2023, CAPPO conference Monterey, CA
General Prevailing Wage Compliance @ 10:15 – 11:30 a.m.
Prevailing Wage – Top 10 Tips – Where Things Go Wrong - @ 1:15 to 2:30 p.m.

January 10, 2023, CSDA Online Training
What’s New in California Prevailing Wages (for Agencies) 10-11 a.m.

January 19, 2023, Online Webinar
What’s New in California Prevailing Wage and a look at Skilled and Trained Workforce
9-10:30 a.m. Sign up through CCMI’s website after November 15th www.ccmilcp.com
Cost: $79

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 
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: How do I figure out health and welfare, vacation and other fringe benefit credit on prevailing wage
ANSWER:   If one is union signatory, you merely take the per hour benefits the contractor is paying to the Union Trust Funds as fringe benefit credit. For open shop contractors, all jurisdictions will allow you to take credit for heath and welfare payments you make to a third party provider. The calculation must be by individual.

The easiest calculation is:

Monthly premium x 12 (months in a year) ÷ 2080 (work hours in a year)= per hour rate

Example: $750 x 12 =$9000 ÷ 2080 = $4.32 per hour as fringe benefit credit for that worker

Pension is usually credited 100% and does not need to run through this formula.

Most, but not all, jurisdictions also allow contractors who do not pay benefits to a third party provider or trust funds to calculate and take credit for any vested benefits such as vacation and holiday. Remember that these cannot be forfeit if the employee leaves the company. So earned vacation must be paid.

This is the calculation:

Total Hours (vacation and holiday to be earned by the worker in a year) x RRP (employee’s regular rate of pay that will be paid for this vacation or holiday) ÷ 2080 = per hour rate

Example: 120 hours x $35 = $4200 ÷ 2080 = $2.01 fringe credit for vacation and holiday.

Hawaii and Nevada do not allow contractors to take credit unless the benefit is paid to a third party administrator. There may be other states as well. Check your State’s ruling on this topic.

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.