Labor office surveys construction prevailing wage rates

The Office of the Labor Commissioner is asking southern Nevada contractors that have performed work for the state on projects worth over $100,000 in the past year to complete a survey on prevailing wage rates. The commissioner will use the results to adjust the rates for public works projects in the coming year.

The Office of the Labor Commissioner is required by state law to undertake the survey every year and to publish the prevailing wages by October 1.

Contractors - who are not legally obligated to complete and return the survey - have until July 15 to return the surveys to the Office of the Labor Commissioner. However, in the event that no contractors report prevailing wages for a trade in a particular county, the commissioner will then use reported rates for the nearest county. As a result, the prevailing wages implemented by the state may not reflect those paid in the community.

"The size of a project is not important," said Carrie Foley, chief assistant to the commissioner. "Where the work was performed and what rate contractors paid a specific classification in a given locale are the important factors."

The one-page survey solicits prevailing wage information on both private and public construction work performed by a contractor.

In the past, the state has mailed the survey to contractors. Due to fiscal restraints this year, the survey and related documents can only be accessed at the commissioner's Web site, www.laborcommissioner.com.

Administration crafts 'High Road' plan, igniting concern

In recent months, multiple sources have reported that the Obama administration is drafting an overhaul to federal bidding procedures. The administration has not formally announced these proposals, although they have acknowledged that they are in the process of considering them. The new bidding plans are generally referred to as the "High Road" contracting policies, and would most likely be put into effect by an executive order if they come to fruition.

The High Road policies would call for a new method of bid evaluation. Instead of merely seeking the lowest price, contractors nationwide would be scored on a variety of variables related to the wages that they pay, the benefits they offer, and their history of compliance with tax and labor laws. The federal government would then have the option to give preference to firms that score higher on the scale (when it comes to paying higher wages, giving more benefits, etc) in awarding bids.

"Any policy in this area will support the president's agenda to reform government contracting in ways that will save taxpayers money," Office of Management and Budget spokesman Thomas Gavin said.

The spokesman's statements echo an internal White House memo produced in June.

"These [higher bid prices] would be substantially offset by public cost savings, productivity gains through reduced turnover, and increased price competition...Higher wages will also stimulate economic demand."

However, some Republicans and others are worried that this policy might turn out to benefit unions at the expense of others in the construction industry.

"This change could 'shut the door' for small businesses that are seeking to enter the federal marketplace," said Senator Susan Collins of (R-ME).

Ben Brubeck of the Associated Builders and Contractors estimates that 85% of the construction workforce is non-union, and that the proposals could cause significant turmoil in the industry if put into effect.

The White House has stressed that the policy is still at a stage far from implementation.

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