Are Prevailing Wages Being Paid on Your Public Works Project?

Public agencies have a number of obligations to ensure that workers employed by the contractor and subcontractors on a public works project are being paid prevailing wages. 

Federally Funded Projects:  If the project is funded in whole or in part with federal funds, the public agency receiving the funds is required to monitor prevailing wages through the following:

• Certified Payrolls:  Collect weekly certified payrolls from the contractor and each subcontractor of any tier.  Review the payrolls to ensure that prevailing wages are being paid.  For a list of issues to monitor, visit my previous blog entry from December 1, 2010.

• Interview Workers:  Conduct interviews with workers at the construction site and ask questions about their duties and how much they are being paid.  Correlate this information with the certified payroll reports to ensure that the contractor is accurately reporting their pay.  Investigate when there are discrepancies between information obtained from interviews and certified payrolls.

Non-Federally Funded Projects:  In Washington State, public agencies must do the following on public works projects:

• Statement of Intent to Pay Prevailing Wages:  Obtain a Statement of Intent to Pay Prevailing Wages from the contractor and each subcontractor who worked during the pay period for which the agency is processing a pay application.  Payment should not be made to a contractor if any of these Intents, approved by the State Department of Labor and Industries, are missing.

• Check That Intents are Posted On-Site:  Make sure the contractor has complied with the state law requiring them to post on the job site, in a location visible to workers, a copy of the approved Statement of Intent to Pay Prevailing Wages.

• Statement with Each Pay Application:  With each pay application, RCW 39.12.040 (1)(b) requires the contractor to provide a statement with each application for payment that prevailing wages have been paid in accordance with the pre-filed Statement(s) of Intent to Pay Prevailing Wages.  This statement is typically provided on a separate form provided by the public agency to the contractor and may also include a list of the subcontractors (of any tier) who worked on the site for the period for which payment is requested.  The language on the form might state something like the following:  

"Prevailing wages for this project have been paid in accordance with the pre-filed Statement or Statements of Intent to Pay Prevailing Wages approved by the Industrial Statistician of the Department of Labor and Industries, which are on file with the public agency."

Mike Purdy's Public Contracting Blog 

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