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.
Sincerely,
Deborah Wilder
CCMI President
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WHATS NEW?
California Law Includes NEW Liability for Prime Contractors for Wages and Benefits Owed to Workers of Subcontractors AB1701.
The California Legislature passed a new law which expands the liability of wages and benefits due to construction workers to privately funded projects beginning January 1, 2018. Under prevailing wage law, a prime contractor is ultimately liable for the prevailing wages due to all workers on the project. The California legislature is the first State to expand that same liability to privately funded projects. That means that prime contractors and subcontractors remain liable to workers of subcontractors and sub-tier contractor workers on all construction projects.
Those who can file suit include: 1) the California Labor Commissioner; 2) any fund that is due contributions from subcontractors and has not received them; and, 3) any joint labor-management cooperation committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec.175a).
Prime Contractors are responsible for wages and fringe benefits to workers and funds as well as any interest due, attorney's fees and expert witness fees. Any action must be brought within one year of the completion of the project (triggered by filing the Notice of Completion, Notice of Cessation or Actual Completion of a project).
Prime Contractors would be wise to amend their contracts to require the submission of proof of payment of wages and benefits for the project as a preliminary requirement to be paid progress and/or final payments as well as full indemnification for all costs associated with defending such an action.
STAY TUNED!
CCMI is working with LCPtracker provide some type of payroll documentation
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UPDATES AND ANNOUNCEMENTS
CCMI has been told that due to budget constraints, all Prevailing Wage Staff have been let go at the Missouri Department of Labor and Industry. It is making it hard to get questions answered.
SAVE THE DATE
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UPCOMING EVENTS - Training and Seminars
January 25, 2018 San Diego, CA
What Every Contractor Should Know about Prevailing Wages 9 a.m. - 4 p.m. contact ABC San Diego www.abcsd.org
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FROM THE INBOX....
You asked, we answered!
QUESTION:
How come the Davis Bacon Act and Service Contract Act rates are different when my workers are doing essentially the same work?
ANSWER:
The Davis Bacon Act covers prevailing wages for construction. The Service Contract Act calls for prevailing wages for maintenance and repairs. Sometimes that line gets really grey. First and foremost the rules are different under each law, so you need to be sure which law applies to which contract you are performing. The Service Contract Act applies to buildings and facilities owned and leased by the federal government and for which typical maintenance and repairs are being made. Davis Bacon applies to BOTH federal facilities as well as any other construction in which federal Davis Bacon funding flows i.e. City, County, non profit. The owner of the property is supposed to include in the solicitation information about prevailing wage requirements. If the entity fails to include the required information about DBA or SCA, then the contractor is still liable to pay the applicable wages, AND is also entitled to a full change order for the difference in wages from the owner (or entity) which failed to include the statutorily required information.
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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.
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