The Main Concerns Associated With Prevailing Wage Contractors

By Thomas Rogers


With a majority of projects that fall within the government authorization, there are numerous regulations which companies have to observe. The failure to note and observe such regulations can prove to be dangerous, and as such make one liable to pay various fines. Prosecutions may also be applicable in some instances. Hence, having sufficient knowledge is vital. This article outlines the main concerns associated with prevailing wage contractors.

The law is set to work even during the cases when notifications may be limited. The failure of a public body which is mandated to inspect the project to give formal notifications does not create loopholes for anyone. This is because the contractor is still required to pay their workers as according to the prevailing rates. Where differences are noted they must be settled afterward and the public body can pay the fines if any are available.

A subcontractor will still be liable to pay the wages even if they have not received the notification from the service provider. This applies in the cases when the service provider fails to make the proper arrangements to inform the subcontractor of their duty. In such instances, the contractor will have to pay any fines and interests that are applicable. The subcontractor only has to pay the right wages as stipulated by law.

The need to keep all the proper records and payment details. It is critical that a contractor maintains the records regarding the project and more so the payroll records. This is because such will be used for the later auditing process of the project and failure to keep all documentation can be fined. The lawful submission of such records is normally after a month and it needs to be done without fail.

The matter regarding falsified records. This is a critical aspect of the auditing process and it is essential for all contractors to know their obligations and offenses related. The false submission of certified payrolls makes a contractor subject to debarment. This includes them being prohibited from participating in any kind of public works for a period of four years. It is a regulation that gives zero option for a hearing.

Record keeping even after submission is essential. This majorly entails the scenarios where contractors fail to give the required records. Even though the certified payrolls are the most important, all other records pertaining to a project as long as it is public must be kept. This is because of the insufficiency of the payroll records to give the full picture.

County regulations and the site of the project. Another essential aspect that a company should consider is the location where they get laborers. The details regarding the county have to be posted and it is very important for workers to be aware of their prevailing rates rights.

The issue of union alliance and disassociation. Where the contractor does not take any alliance with a union they still have to abide by the law. The current rates need to be ensured by all contractors even the non-union allied kind.




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