Monday, January 10, 2011

Agency Fails to Comply with State and Federal Prevailing Wage Requirements

On three projects requiring the payment of prevailing wages, the Central Klickitat Conservation District (Klickitat County, WA) failed to comply with state and federal prevailing wage requirements.

No Prevailing Wage Forms or Payrolls Obtained:  In an audit issued by the Washington State Auditor's Office, the auditor found that the District failed to obtain two state required prevailing wage forms from the contractors and subcontractors ("Statement of Intent to Pay Prevailing Wages" and "Affidavit of Wages Paid").  In addition, because one of the projects was funded in part by a federal grant, the District was required to obtain weekly certified payrolls from the contractor and subcontractors, something they failed to do.

State vs. Federal Prevailing Wages:  Although not mentioned in the audit finding, contractors and subcontractors on federally funded projects must also pay the higher of the two rates between the federal Davis-Bacon prevailing wages and the applicable state prevailing wages.

Does Your Project Include Federal Funds?  It is important for public agencies to know whether their projects have federal funding, as such funding often triggers a requirement for federal prevailing wages, and may also include provisions for other requirements that could impact the selection of the contractor and administration of the project.
Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC

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