# Prevailing wage jobs



## rino1494 (Jan 31, 2006)

As most of you know, we do residential/commercial site work for GC's and developers. In nearly 30yrs of business, we have never done any prevailing wage jobs. This is mainly because we didn't know anything about them. With the downturn of the residential market and contractors not paying, we need to re-direct our business and try something new. There are few jobs in the area that I might try to bid on. One of them is a mine reclamation and the other is a stream bank revitalization job. 

Here is the problem, I know absolutely nothing about the paper work that goes along with this stuff. This is part of the bid that I scares me.

_The Labor Standards, Wage Determination Decision and Anti-Kickback regulations (29 CFR, Part 3) issued by the Secretary of Labor are included in the Contract Documents of this project and govern all work under the Contract. Non-discrimination in Employment Bidders on this work will be required to comply with the Presidents Executive Order 11246 and will be required to insure that employees and applicants for employment are not discriminated against on the basis of their race, color, national origin, sex, religion, age, disability or familial status in employment or the provisions of services. The Contractor, in accordance with Executive Order 11625 and 12138, must utilize to the greatest extent feasible minority and/or women owned business concerns which are located within the municipality, county or general trade area._

Are they telling me that that I have to use a minority supplier, what if I can't find one ?? I am totally lost on this stuff.

Also, what about keeping documents on payroll? Are there specific papers for that ?

I understand that there is alot to learn on this and it is hard to tell me everything on here, but any help is appreciated. :thumbsup:


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## jhark123 (Aug 26, 2008)

Each job will have different requirements as far as minorities, etc. 

It is a very different world (I've only won one job) and it is very competative, but the risks and rewards are amplified. So, if you like the reward enough, you should like PW work.

What I did to get started is "Ghost Bid" several projects. I went to the walk-throughs and estimated the whole job. Then, after the bid I could see how I did.

Do you know Generals who do PW work?


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## dayexco (Mar 4, 2006)

rino1494 said:


> As most of you know, we do residential/commercial site work for GC's and developers. In nearly 30yrs of business, we have never done any prevailing wage jobs. This is mainly because we didn't know anything about them. With the downturn of the residential market and contractors not paying, we need to re-direct our business and try something new. There are few jobs in the area that I might try to bid on. One of them is a mine reclamation and the other is a stream bank revitalization job.
> 
> Here is the problem, I know absolutely nothing about the paper work that goes along with this stuff. This is part of the bid that I scares me.
> 
> ...


pure and simple jason, it's a time consuming nuisance. i don't know who does your bookwork, but it creates more for them...the govt. looks at it as though it creates more jobs to enact, instruct, collect, and enforce this law...it's a crock of sh|t in my book.


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## griz (Nov 26, 2009)

The minority hire/purchase stuff is you *may* have to show a good faith effort that you tried to comply.

The payroll paperwork can be daunting. There will be *A LOT* of it. Certified Payroll is a requirement. Wages are pre-determined and not negotiable. Even if it not a union job check if there is a Community Benefit Agreement in place where you will have to hire so many workers from the hall.

Your payroll will be audited. If it is a big enough job there will be Compliance people out interviewing your workers to make certain everything is on the up and up. At this point OSHA usually smells blood in the water and begin to lurk around also.

Not to scare you away. The easiest way to deal with the payroll id hire someone who does it on a regular basis.

Did I mention there will be alot of paperwork....


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## jmacd (Jul 14, 2009)

My wife does most of the paperwork so i have to give her credit. This is what I know. 

The pay scales are in the spec book included with the plans. This spec book is at least 200 pages long but you should read cover to cover. 

This book includes everything you will need. Watch out for amendments also you will have to include in your bid, a bid bond, non- collusion statement, and a verification of amendments. 

The pay rates are also on the Internet along with all forms to be filled out and sent in with all pay requests. Each state in done by county and specific trades and don't forget the supplemental pay. You can use your own employees but have to pay the rate plus supplemental.

The pricing is materials no mark up, overhead and labor. Very little to work with if you have problems. I bid a job yesterday for a school and it went 10% below material and labor costs. The job had 22 bidders and they were from the low winner to close to triple the winners price. I was number 6 out of 22.


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## griz (Nov 26, 2009)

jmacd said:


> My wife does most of the paperwork so i have to give her credit. This is what I know.
> 
> The pay scales are in the spec book included with the plans. This spec book is at least 200 pages long but should be read cover to cover.
> 
> ...


You have to get a bond?


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## jmacd (Jul 14, 2009)

Yup,
bid bond or cashiers check for 5%. Performance bond or cashiers check for contract amount, and payment bond.

Insurance agent will do all this for you. The minority stuff is in the spec book also and depends on the size of the job sometimes. The last two had nothing in the book about it. 

The larger GC'c advertise in the paper for this to show an effort for sub contractors. 

WBE,DBE and MBE. Woman, disabled, and minority can get a 10% (I think) advantage when bidding PW as the GC or Prime contractor I have been told.


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## rino1494 (Jan 31, 2006)

Thanks for the replies guys. I have not picked up the spec book yet as I am waiting to go to the pre-bid meeting first. I know all about reading them cover to cover. I recently bid a 3 story bank building and the spec book was 660 pages and that did not include the MEP, that was a seperate book.


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## jmacd (Jul 14, 2009)

I would get the plans and specs before the meeting so you know the job and the questions to ask at the meeting. This is easier than asking questions after the meeting using RFI procedure.

I would also call your insurance guy and get the bond issue started. This is a big hurdle that many contractors cant get over for many reasons. The cost of the bond varies greatly from contractor to contractor.


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## rino1494 (Jan 31, 2006)

Getting plans early is a good idea, but they are $100. Not really willing to shell out $100 if I am not interested in the job.


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## griz (Nov 26, 2009)

rino1494 said:


> Getting plans early is a good idea, but they are $100. Not really willing to shell out $100 if I am not interested in the job.


C note is refundable?

Are they on line at your local Builders Exchange?i


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## jmacd (Jul 14, 2009)

Good advise Griz. The exchange is great and a must for this. 

You can order plans from them, view plans and spec on line or print. It list all the jobs and all information. Worth the cost. :thumbsup:

It is a real trip going to the bid openings. You sit in a room with all the other bidders and the bids are read one by one. Real fun.


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## dayexco (Mar 4, 2006)

griz said:


> C note is refundable?
> 
> Are they on line at your local Builders Exchange?i




you're lucky you live where you live...most engineers here now have gone with your fee for plans, specs being nonrefundable. our nearest builder's exchange here is 96 miles away. for the weekly job listing flyer and use of the plan room is $400 a year. you can subscribe to the electronic version for $1500 a yr.


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## rino1494 (Jan 31, 2006)

dayexco said:


> you're lucky you live where you live...most engineers here now have gone with your fee for plans, specs being nonrefundable. our nearest builder's exchange here is 96 miles away. for the weekly job listing flyer and use of the plan room is $400 a year. you can subscribe to the electronic version for $1500 a yr.


Same here, but the builder's exchange is closer for me. I thought about the Dodge reports if I was going to spend that kind of dough.


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## MSLiechty (Sep 13, 2010)

are the plans on Bidmail? 

I get most our plans this way and download them as PDF or TIF and upload them into OST for takeoffs.

ML


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## Vinny (Jul 21, 2007)

Chiming in late but I would only repeat whats already been said. If you dont have anyone to help u with the paperwork its a major pain. 

We completed our first one last year and its really only a few additional forms to deal with. But since you may not be already paying the prevailing wage you have to of course price the job correctly. You can get the wages on the DOL website in your area. Normally broken down by town. 

Then every week you need to calculate the diffence in what you normally pay to wha the prevailing wage is, add the bennys, and make sure u pay the guys that amount. 

May sound easy as I've written it buty I found it to be a pain.


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## Moxley-Kidwell (Jan 28, 2011)

Rino,
Most of the spec books will tell you how much % should be by minority contractors. Make sure you keep track of any minority you bid anything to. Even if you can't meet the required % they sometimes let you use a waiver, but you need to show you tried to get the subs. I would do a real simple form and send it with any bid requests and have them fill it out to show you at least offered.

We do some work as a subcontractor to the big GC's. It might be easier to get a bidder list and try to be a sub first. If your local contracts are like the ones in MD there is so much ***** in them that you wouldn't otherwise do that it's just easier to pick through the stuff you can be competitive on bid only that.

Google certified payroll and you can get a crash course on it. My wife does that stuff for us and once you do it one time it shouldn't be a big problem. But even if you are a sub you will have to submit it to the GC, so it's pretty much a must learn in the public contracting world.

You usually will be able to look at the history of the bid tabulations online somewhere. That will give you an idea what the work is going for on previous contracts.

Thats my 2 cents, hope it helps some. GOOD LUCK!!!!!


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## Upchuck (Apr 7, 2009)

Rino

Seems like we are in the same boat. I've done some small prevailing wage jobs. I've thought about bidding more of these jobs due to the lack of residential/ commercial. The biggest problem is the amount of competition/ pricing. At the end of the day we have to do something right?


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## JBryant (Dec 13, 2010)

One of the things we do is to send bid invitations by certified mail to mbe/wbe's. We also run an ad in the local paper encouraging minority businesses to contact us. These both give us proof that we tried to meet the goals.


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## Sar-Con (Jun 23, 2010)

I find it truely amazing that so much time and effort is spent worrying about % of minority contractors.
Women Owned?
Small Business?
Ethnic?
Disabled?
Native?
Veteran?
I find myself busy enough just to price these jobs and ensure that I've got the scope covered to be worried about what a sub-contractor or supplier is or isn't. Don't get me wrong, because I only discriminate price and scope....

These days I get about a day or two to do my pricing, then spend the next eight reading the literature of how I'm going to get bent over if I do win the bid....

Rant Over:thumbup:


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