..WHD-9918 FEB 9 2024.pdf
PDF 122 KB Posted
- Attached to
- HIGH-DENSITY MOBILE STORAGE SYSTEMS
- Solicitation number
- RFP 751 240000002696 2
- Issued by
- Grand Traverse County, Lansing City, Michigan
About this file
This is an informational sheet issued by the State of Michigan Wage and Hour Division regarding prevailing wage requirements for state-funded construction projects, effective February 13, 2024. The document outlines the obligations of the State of Michigan, the Department of Technology, Management and Budget (DTMB), and contractors in implementing prevailing wage standards. Prevailing wage rates are established for designated construction mechanic classifications and include both hourly wages and fringe benefits. The rates are compiled from collectively bargained agreements covering project locations, though collective bargaining agreements are not required for contractors to work on or be awarded state projects. Key procedural requirements include that the state must establish prevailing rates for each classification prior to contracts being let for bid, and if a contract is not awarded or construction does not commence within 90 days of rate issuance, rates must be re-determined. Rates for classifications not included on the prevailing wage schedule must be obtained before bid solicitation.
Contractor and subcontractor responsibilities include posting prevailing rates in a conspicuous location on construction sites, maintaining accurate records of worker names, occupations, and actual wages and benefits paid, and ensuring all subcontractors are notified of prevailing wage requirements before work commences. Apprentices may only be paid the apprentice rate if registered with the United States Department of Labor, Bureau of Apprenticeship and Training and the rate is specified in the contract. The prime contractor is liable for ensuring all employees receive prevailing wage compensation. Enforcement mechanisms allow workers or other parties to file complaints with the State of Michigan for alleged violations, with investigations conducted by the department. Non-compliance—including failure to provide required records or postings—may result in material breach determinations, contract termination for cause, and civil penalties under Act 10 of 2023.
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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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