Attachment 2 - WHD 9918 Feb 2024.pdf
PDF 122 KB Posted
- Attached to
- HVAC Preventative Maintenance MDOT Grand Region
- Solicitation number
- RFP 591 260000002272 1
- Issued by
- Michigan
About this file
This informational document from Michigan's Wage and Hour Division (WHD 9918, effective February 13, 2024) provides prevailing wage requirements for state-funded construction projects in Michigan. The document outlines the regulatory framework established by the State of Michigan and administered by the Department of Technology, Management and Budget (DTMB) regarding minimum compensation standards for construction mechanics on publicly financed projects. Prevailing wage rates are compiled from collectively bargained agreements covering project locations and include both hourly wages and fringe benefits for designated construction mechanic classifications. The document specifies responsibilities across all parties: the state establishes prevailing rates for each classification prior to contract bidding, DTMB must request rate re-determination if contracts are not awarded or construction does not commence within 90 days, and rates for classifications not included in the prevailing wage schedule must be obtained before contracts are released for bid.
Contractors and subcontractors must post prevailing wage rates conspicuously at construction sites and maintain accurate records documenting employee names, occupations, and actual wages and benefits paid, with records subject to inspection by DTMB or the state department. Each contractor and subcontractor bears liability for prevailing wage payment compliance, and prime contractors are responsible for communicating prevailing wage requirements to all subcontractors prior to work commencement. Apprentice rates apply only to workers registered with the U.S. Department of Labor's Bureau of Apprenticeship and Training, provided the rate is included in the contract. Enforcement mechanisms include complaint procedures filed with the State of Michigan, with investigations conducted to resolve alleged violations informally. Failure to provide requested records and posting certification constitutes potential material breach of contract, allowing the contracting agent to terminate for cause at its discretion, with civil penalties also applicable for non-compliance with Act 10 of 2023.
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Other files
| File | Type | Posted |
|---|---|---|
| Exhibit 1-HVAC Equipment and Task List .xlsx | XLSX spreadsheet | |
| Schedule B-Pricing Grand Region HVAC.xlsx | XLSX spreadsheet | |
| RFP 26-2272 Proposal Instructions VQW Contract Terms Schedule A Schedule B .docx | DOCX document | |
| Attachment 1 - WHD 9917 Nov 2025.pdf | ||
| Attachment 3 - Prevailing Wage Rates Kent County 2026.pdf |
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Text version
STATE OF MICHIGAN
Wage and Hour Division PO Box 30476
Lansing, MI 48909 517-284-7800
Informational Sheet: Prevailing Wages on State Funded Projects
WHD 9918 (2/24)
REQUIREMENTS
Effective February 13, 2024
The purpose of establishing prevailing rates is to provide minimum rates of pay that must be paid to workers on construction projects that are financed or financially supported by the state Prevailing rates compiled from the rates contained in collectively bargained agreements which cover the locations of the state projects. While the prevailing wage rates are compiled through surveys of collectively bargained agreements, a collective bargaining agreement is not required for contractors to be on or be awarded state projects. The prevailing rate schedule provides an hourly rate which includes wage and fringe benefit totals for designated construction mechanic classifications. The overtime rates also include wage and fringe benefit totals. Please pay special attention to the overtime and premium pay requirements. The prevailing wage is satisfied when wages plus fringe benefits are equal to or greater than the required rate.
State of Michigan responsibilities:
• The department establishes the prevailing rate for each classification of construction mechanic requested by the contracting agents prior to contracts being let out for bid on a state project.
DTMB responsibilities
• If a contract is not awarded or construction does not start within 90 days of the date of the issuance of rates, a re- determination of rates must be requested by the contracting agents.
• Rates for classifications needed but not provided on the Prevailing Rate Schedule, must be obtained prior to contracts being let out for bid on a state project.
Contractor responsibilities:
• Every contractor and subcontractor shall keep posted on the construction site, in a conspicuous place, a copy of all prevailing rates prescribed in a contract.
• Every contractor and subcontractor shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each construction mechanic. This record shall be available for reasonable inspection by DTMB or the department.
• Each contractor or subcontractor is liable for the payment of the prevailing rate to its employees.
• The prime contractor is responsible for advising all subcontractors of the requirement to pay the prevailing rate prior to commencement of work.
• A construction mechanic shall only be paid the apprentice rate if registered with the United States Department of Labor, Bureau of Apprenticeship and Training and the rate is included in the contract.
Enforcement:
A person who has information of an alleged prevailing wage violation on a prevailing wage project may file a complaint with the State of Michigan. The department will investigate and attempt to resolve the complaint informally. During the course of an investigation, if the requested records and posting certification are not made available in compliance with contractual requirements, the Contracting Agent may consider the Contractor to be in material breach of the contract and may terminate the contract for cause at the sole discretion. There are also civil penalties for failure to be in compliance with Act 10. View the entire text of Act 10 of 2023 at michigan.gov/wagehour.
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