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Monday, August 26, 2013

15 Tips for Contractors on California Prevailing Wage Contracts

California prevailing wages projects can be profitable if you understand the rules of engagement. Here are 15 tips you need to know to submit a complete bid for a prevailing wage project.


  1. Know your funding sources; it determines the rules
  2. Select the correct wage determination
  3. Properly classify your workers based on the scope of work
  4. If there is an expiration date has a double asterisk (**) there is predetermined increases in the prevailing wages
  5. Overtime is paid after 8 hours a day and/or 40 hours a week
  6. Work on Saturdays, Sundays, and Holidays is paid at a premium rate even if the time worked is not overtime
  7. Check for recognized holidays
  8. Check for shift pay
  9. Apprentice must be supervised and employed in specific ratios
  10. DAS-140 forms must be sent within 10 days after signing the contract but no later than the first day of work on the job site
  11. Training contributions should not be paid to employee, only to approved funds
  12. Union contracts do not supersede state law, however the highest rate should be paid
  13. If you are not signatory to a union there are additional cost in PLA agreements
  14. If you 1099 your employees they don't qualify as "core employees"
  15. Include your workers' compensation and employer tax cost for your fully burden labor cost rate



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Administration Rescue, Inc consulting firm is a third party provider of labor compliance and monitoring for contractors on prevailing wage public construction projects.  We specialize in providing technical assistance to Prime Contractor's DBE/SBE subcontractors to evaluate, train, and/or provide labor compliance services that ensures certified payrolls are on time, accurate and incompliance. We understand where subcontractors have skill gaps and how to break down confusing State and Federal labor laws governing public works construction into simple terms.
Our goal is to save Prime Contractor's time, money and frustration on prevailing wage projects with DBE/SBE goals.  We implement a proactive strategy to address the issues prime contractors experience from subcontractors in the area of labor compliance.  We start in the prebid meeting with 15 tips that produce more informed and complete bids from subcontractors. Our work is based on hands on experience with subcontractors that has identified "what they don't know they don't know".  We address business infrastructure, proper record keeping and worker classification that will strengthen the DBE/SBE subcontractor understanding of their obligation on prevailing wage projects.  

Ask us how we help subcontractors submit reports that are on time, accurate and incompliance.

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For detailed explanation of a tip, send your question regarding California prevailing wage to

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Services We Provide

  •  Labor compliance 
  •  Labor compliance monitoring
  •  Training for prevailing wage
  •  Human Resource consulting
  •  Technical assistance for DBE/SBE subcontractors


The State of California will spend over 100 billion dollars in public work projects over the next 15 years.  Already funded projects include High Speed Rail, Crenshaw Corridor and The Gerald Desmond Bridge.  In order to take advantage of this lucrative field of public construction enroll in the Certificate Program at Santa Monica College. Course will teach the company infrastructure needed to get Certified DBE/SBE. The safety policies you need in place.  Course will be interactive and hands on. First course offered will begin January 2014.  Check back for details Courses include:

Business Infrastructure Development
Policies and Procedures
Prevailing Wage
Contract from Start to Close Out