Attachment 1 - WHD 9917 Nov 2025.pdf
PDF 256 KB Posted
- Attached to
- HVAC Preventative Maintenance MDOT Grand Region
- Solicitation number
- RFP 591 260000002109 2
- Issued by
- Michigan
About this file
This is an informational sheet from the State of Michigan Department of Labor regarding prevailing wage requirements for construction projects. The document provides guidance on how fringe benefits may be credited toward prevailing wage rate obligations for construction mechanics employed on state projects.
The sheet details which fringe benefits are eligible for hourly credit calculations, including vacation pay, health insurance, dental and vision coverage, life insurance, tuition assistance, bonuses, and employer 401(k) contributions. The document establishes that fringe benefits not paid at an hourly rate must be converted to an hourly credit by dividing the annual value by 2,080 hours per year (52 weeks at 40 hours per week). Additionally, the document explicitly identifies items that cannot be credited toward prevailing wage payments, including legally required payments such as unemployment and workers' compensation insurance, reimbursable expenses like travel and meal allowances, and other non-wage payments such as industry advancement funds and loans. The information serves as a reference guide for contractors and employers to ensure compliance with Michigan's prevailing wage requirements on state-funded construction projects.
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Other files
| File | Type | Posted |
|---|---|---|
| Attachment 2 - WHD 9918 Feb 2024.pdf | ||
| Attachment 3 - Prevailing Wage Rates Kent County 2026.pdf | ||
| Schedule B-Pricing Grand Region HVAC Revised.xlsx | XLSX spreadsheet | |
| Exhibit 1-HVAC Equipment and Task List .xlsx | XLSX spreadsheet | |
| Amendment 1 - RFP 260000002109.docx | DOCX document | |
| RFP 26-2109 Proposal Instructions VQW Contract Terms Schedule A Schedule B Revised.docx | DOCX document | |
| Amendment 2- Q & A RFP 26-2109.docx | DOCX document |
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Text version
STATE OF MICHIGAN
Informational Sheet: Prevailing Wages on State Projects
WHD-9917 11/25
General Information Regarding Fringe Benefits Certain fringe benefits may be credited toward the payment of the Prevailing Wage Rate:
o If a fringe benefit is paid directly to a construction mechanic o If a fringe benefit contribution or payment is made on behalf of a construction mechanic o If a fringe benefit, which may be provided to a construction mechanic, is pursuant to a written contract or policy o If a fringe benefit is paid into a fund, for a construction mechanic
When a fringe benefit is not paid by an hourly rate, the hourly credit will be calculated based on the annual value of the fringe benefit divided by 2080 hours per year (52 weeks @ 40 hours per week).
The following is an example of the types of fringe benefits allowed and how an hourly credit is calculated:
Vacation 40 hours X $14.00 per hour = $560/2080 = $.27 Dental insurance $31.07 monthly premium X 12 mos. = $372.84 /2080 = $.18 Vision insurance $5.38 monthly premium X 12 mos. = $64.56/2080 = $.03 Health insurance $230.00 monthly premium X 12 mos. = $2,760.00/2080 = $1.33 Life insurance $27.04 monthly premium X 12 mos. = $324.48/2080 = $.16 Tuition $500.00 annual cost/2080 = $.24 Bonus 4 quarterly bonus/year x $250 = $1000.00/2080 = $.48 401k Employer Contribution $2000.00 total annual contribution/2080 = $.96
Total Hourly Credit $3.65 Other examples of the types of fringe benefits allowed:
• Sick pay
• Holiday pay
• Accidental Death & Dismemberment insurance premiums
The following are examples of items that will not be credited toward the payment of the Prevailing Wage Rate o Legally required payments, such as:
• Unemployment Insurance payments
• Workers’ Compensation Insurance payments
• FICA (Social Security contributions, Medicare contributions) o Reimbursable expenses, such as:
• Clothing allowance or reimbursement
• Uniform allowance or reimbursement
• Gas allowance or reimbursement
• Travel time or payment
• Meals or lodging allowance or reimbursement
• Per diem allowance or payment o Other payments to or on behalf of a construction mechanic that are not wages or fringe benefits, such as:
• Industry advancement funds
• Financial or material loans
File details come from the government source that posted it. Updated .