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WAGE DECISIONS. WAGE DECISION. Stipulates the wage requirements for construction trades Must be incorporated in prime contract Required for all subcontracts Incorporate, do not include by “attachment” Must be posted at the job site. A Wage Decision.
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WAGE DECISIONS
WAGE DECISION • Stipulates the wage requirements for construction trades • Must be incorporated in prime contract • Required for all subcontracts • Incorporate, do not include by “attachment” • Must be posted at the job site
A Wage Decision • identifies the prevailing hourly wage requirements • for all laborers and mechanics • performing work on a covered project.
Wage Decision Basics • The wage decision will identify • Work classifications • Basic hourly rate of pay • Fringe benefits
$14.75 Carpenter Electrician $22.50 Base Rate + 4.25 Fringe Benefit Plumber $18.65 Base + 3.50 FB Ironworker Backhoe Operator $12.45 $26.90 Base +5.00 FB
DETERMINATION OF DAVIS-BACON WAGE DECISIONS • Established by survey of contractors • Established by geographic area • Establishes the “prevailing” wage rate • May be modified from time to time
CHARACTER OF CONSTRUCTION • Construction projects are broadly classified: • Building - housing >4 stories; commercial facilities • Highway - roads, sidewalks • Residential - housing 1-4 stories • Heavy - “catch-all” category
WAGE DECISION “LOCK-IN” • Generally, once “locked in” a wage decision cannot be modified during the life of the contract “Lock-in” usually occurs at contract award, with a few exceptions
WAGE DECISION “LOCK-IN”Competitively Bid Contracts • Lock-in at bid opening provided contract is awarded or construction has started within 90 days • Must update wage decision if contract is awarded more than 90 days after bid opening
WAGE DECISION “LOCK-IN”Negotiated Contracts • Date the negotiated bid is accepted • Lock-in provided contract is awarded or construction has started within 90 days • Must update wage decision if contract is awarded more than 90 days after bid opening
WAGE DECISION COMPONENTS • Wage decision number • Modification date • State, county information • Wage decision type • Trade classifications • Base Wage, and • Fringe Benefits
FRINGE BENEFITSEmployer Contributions to: • Health insurance • Retirement • Life insurance • Apprenticeship and training
<- WD Number <- Construction Type <- Counties <- Description Mod Number & Publish Date
CLASSIFICATION FRINGES RATE
CALCULATE FRINGE BENEFITSExample Base Rate = $31.94 Fringe = 3% + $11.86 3% of $31.94 = $0.96 Add: $31.94 $11.86 + $ 0.96 _________ = $44.76
WAGE DECISION SOURCES • Free through the GPO: • Http://www .Access.gpo/davisbacon/ or • www.wdol.gov