We all know that a public agency must obtain a copy of an approved “Statement of Intent to Pay Prevailing Wages” for the contractor and every subcontractor prior to the making payment to the contractor. But what if the contractor, a GC/CM (General Contractor/Construction Manager), was the low successful bidder on one of the subcontract bid packages? The GC/CM, regardless of whether they were successful in bidding to self-perform work or not, must file an “Intent.” This would apply even if they do not self-perform any work.
And what if the GC/CM, instead of submitting a subcontract bid under the same name as they were awarded the GC/CM contract, bids under the name of an associated company? For example, they might have been awarded the GC/CM contract as “Pacific Construction Company” but successfully submitted a bid on the carpentry subcontract bid package as “Pacific Carpentry Company.” In this instance, Pacific Construction Company, as the GC/CM would be required to file an “Intent” before the owner made any payment, and Pacific Carpentry Company would be required to file an “Intent” as a “subcontractor.” The “subcontractor” is really a separate legal entity, but for all intents and purposes is the GC/CM self-performing the work under a different name.
It’s important to pay close attention to the official legal name of the businesses who are working on a GC/CM project in order to ensure that you, as a public owner, receive the required “Intent” (and Affidavit of Wages Paid) for both the GC/CM, all subcontractors, and any “subcontractor” company associated with the GC/CM who obtains a portion of the work through being the low bidder on a subcontract bid package.
If this isn’t clear, or if you’d like more elaboration on this, please comment and let me know.
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4 comments:
Regarding GC/CM contracts is the "onsite contracotr quality control manager" subject to prevailing wages?
Journey Level In-Charge - I don't see where these rates are published. How is this handled on a GC/CM contract?
The Washington State Department of Labor and Industries publishes all prevailing wages on their website. You can access this information by going to the following website: http://www.lni.wa.gov/TradesLicensing/PrevWage/WageRates/Printable/ByCounty/default.asp
These prevailing wage rates apply for any public works project in the State of Washington, regardless of the particular project delivery method (GC/CM, Design-Build, Job Order Contracting, or the traditional Design-Bid-Build – including Small Works Roster projects).
Depending on the county, the wage rates include “journey-level” for most classifications and in some instances “journey-level in charge.”
I’m not sure if this information sufficiency answers your question. If not, and you can be more specific, I’d be glad to try to answer it more fully.
Assuming that the "on-site contractor quality control manager" is is not performing any physical labor but is, as the title suggests, simply managing the contractor's quality control program, the position would not subject to prevailing wages.
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