[Davisgig] Prevailing Wage Considerations

Jim Frame jhframe at dcn.org
Wed Aug 10 21:23:44 PDT 2016


It's not too early to start thinking about the contracting and 
construction aspects of a municipal fiber network.  We need to be 
cognizant of the ramifications of public funding, even if it's for work 
preparatory to construction of the project.  As a rule of thumb, if any 
public monies get into the mix, prevailing wage regulations apply to the 
entire project, and that can dramatically increase the cost of 
construction.  (I don't think the feasibility study qualifies, but once 
the effort becomes a "public works project" the funding sources matter, 
even prior to actual construction.)

If the build is done with the city as the contracting agency, there's no 
question that the rules apply.  But if it's built for a private 
non-profit, the question goes to the source of funds.

I'm not suggesting that paying prevailing wages is necessarily a bad 
thing, just that it's a factor worthy of consideration.  And the earlier 
the better in order to prevent any unintentional commitments.

The reason I bring this up now is that in doing some research in 
connection of my own business -- prevailing wage requirements can be 
maddeningly complex and confusing -- I came across a Department of 
Industrial Relations ruling on a fiber project.  The project owners 
thought they were exempt from the regs, but the DIR ruled otherwise.

For anyone who wants to dive into the details, the ruling document can 
be found here:

http://www.dir.ca.gov/OPRL/coverage/year2015/2013-015(A).pdf

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Jim Frame                jhframe at dcn.org                 530.756.8584
Frame Surveying & Mapping         609 A Street        Davis, CA 95616
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