CSLB Law & Business ExamPublic WorksEasy
A contractor is bidding on a public works project to renovate a city library. The project is expected to last for 18 months. When should the contractor obtain the prevailing wage rates for this project?
- AWhen the first payroll is due after work commences.
- BUpon receiving the notice to proceed from the awarding body.
- CAt the start of each calendar year the project is active.
- DAt the time the bid is submitted to the awarding body.
Show answer & explanationAnswer & explanation
Correct answer: D. At the time the bid is submitted to the awarding body.
Prevailing wage rates for public works projects are locked in at the time the bid is submitted to ensure all bidders are pricing their labor costs based on the same rates. This prevents unfair advantages and ensures compliance from the outset.
Why the other options are wrong
- A. Rates must be known before work starts and payroll is due, as they are a fundamental part of the bid.
- B. Waiting until notice to proceed is too late; rates must be known for accurate bidding.
- C. Rates are not typically updated annually during a project's term for bid purposes; they are set at bid time.
Prevailing Wage Rate Determination Timing
For public works projects, the applicable prevailing wage rates are determined and locked in at the time the bid is submitted to the awarding body.
- Rates are fixed at bid time.
- Ensures fair bidding among contractors.
- Prevents rate changes during project from impacting bid.
Memory trick: Bid the wage, then engage!