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Wednesday, 13 February 2019

The Main Concerns Associated With Prevailing Wage Contractors

By Thomas Rogers


The majority of federal projects come with numerous rules that must be followed. The failure to follow them might lead to some form of prosecution, and this necessitates the need for one to be properly informed. It is important to do thorough research to know all the issues and conditions that one must follow before taking such a contract. The following are some of the most common issues with prevailing wage contractors.

The law is set to work even during the cases when notifications may be limited. The failure of a public body which is mandated to inspect the project to give formal notifications does not create loopholes for anyone. This is because the contractor is still required to pay their workers as according to the prevailing rates. Where differences are noted they must be settled afterward and the public body can pay the fines if any are available.

A subcontractor has the duty of making all the proper payments even when they have received little notification from the contractor. In the event that a certain company is given the subcontractor role and they have not been made aware of their duties, they have to ensure that they pay the workers properly. This is according to the prevailing rates law and any fines and interests will be handled by the contractor. The arrangements, however, should be clear.

The need to keep all the proper records and payment details. It is critical that a contractor maintains the records regarding the project and more so the payroll records. This is because such will be used for the later auditing process of the project and failure to keep all documentation can be fined. The lawful submission of such records is normally after a month and it needs to be done without fail.

The matter regarding falsified records. This is a critical aspect of the auditing process and it is essential for all contractors to know their obligations and offenses related. The false submission of certified payrolls makes a contractor subject to debarment. This includes them being prohibited from participating in any kind of public works for a period of four years. It is a regulation that gives zero option for a hearing.

Record keeping even after submission is essential. This majorly entails the scenarios where contractors fail to give the required records. Even though the certified payrolls are the most important, all other records pertaining to a project as long as it is public must be kept. This is because of the insufficiency of the payroll records to give the full picture.

County regulations and job site. The service provider has to post the prevailing wage rates for the area or county that they execute the project. This includes the location as well, and workers should be made wary of all the prevailing rates associated with the project.

The issue of union alliance and disassociation. Where the contractor does not take any alliance with a union they still have to abide by the law. The current rates need to be ensured by all contractors even the non-union allied kind.




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