WHAT'S NEW?  

Request for Review May be Required in California for Prime Contractors Seeking

Safe Harbor Protection

California provides protection for a prime contractor from penalties imposed upon subcontractors with prevailing wage violations if the prime contractors engages in the following requirements::

• Provide specific prevailing wage terms in the contract
• Collect and review certified payrolls
• Hold appropriate funds for prevailing wage violations
• Secure an End of Project Affidavit from the specific subcontractor

Now, the California Department of Industrial Relations (DIR) is requiring prime contractors who want to claim this protection to file a Request for Review after Civil Wage and Penalty Assessment (CWPA) is issued.

For example: DIR issues a CWPA for wages due of $35,000; wage penalties of $20,000, apprenticeship penalties of $15,000 and failure to file eCPR of $5,000 for a total of $75,000. If the subcontractor is out of business or does not pay, the prime contractor is only liable for the $35,000 in wages. However, the DIR is now requiring the prime contractor to file an appeal (Request for Review) in order to exercise that protection.

So, all primes at this point in the process should file a Request to Review just to keep their options open anytime a CWPA is issued. Remember the appeal must be made within 60 days of receipt of the CWPA.

Training Opportunities

October 2^nd in person training – 6 hours Everything You Should Know About Prevailing Wages sponsored by Humboldt Builders Exchange. For more information or to register, contact info@humbx.com

Free LCPtracker training October 8 th 8:30-9:30a.m. PST How to Create Your Own Prevailing Wage Checklist https://attendee.gotowebinar.com/register/8961336883570385493?source=CCMI

CCMI has joined the LCPtracker Consultant Alliance Program. We look forward to continuing to connect with industry professionals, sharing knowledge, and supporting the construction compliance community through education and collaboration.

If you need more training, Deborah Wilder is the presenter on the LCPtracker Academy Prevailing wage workshops. Go to www.LCPtracker.com and select the education tab.

Want to schedule your own prevailing wage workshop?

We will customize a workshop or webinar for you and your Agency/Account. Contact us at: info@ccmilcp.com 

ANSWER: 

It is up to the awarding agency to come back and provide the new applicable prevailing wage decision to the prime contractor. If the agency does not come back and require this update, then it will not apply. If the agency does ask for an update, then the prime and all subcontractors are allowed to receive a change order to cover the increase.