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Welcome to our newsletter! You will find important updates and industry related news, along with upcoming speaking events and educational opportunities. Thank you for your interest in CCMI.

Deborah Wilder
CCMI President 

DIR Expands Interpretation of Tree Removal

In a recent California DIR case, the DIR took the position that tree removal, when it was connected to a future construction project, would be classified as “construction” and not as “maintenance”. This changes the wage classifications from those listed under Tree Removal/ Maintenance to Laborers and triggers apprenticeship requirements as well as higher wage rates. There is still some question as to whether a stand alone contract for “Tree Removal” can trigger the “construction classification” as there is not tree trimming but only removal of trees.

DIR issues new wage determinations

The California Department of Industrial Relations just issued a new wage determination. California issues its determinations twice a year February 22 and August 22. If any of you have been on the DIR’s website in the last few days you will see that the determination for 2022 – 1 has not been listed. It was listed March 4th. Please note that the wage determination is effective 10 days after the issue date. If you look at the current determination it says the issue date was February 22 and that makes March 4th the 10th day. These rates (and the corresponding increases will apply to all projects which are advertised for bid from today through August 31. The determination issued August 22 becomes effective September 1. This is often confusing to contractors and agencies alike. Remember it is always the first bid advertisement date which triggers and locks in the applicable California prevailing wage rate.

Upcoming Training:

March 7 – 9 Foundation Software Conference, Orlando, Florida. https://events.foundationsoft.com/user-conference/

March 11 What Every Contractor Should Know About Prevailing Wages; 6 hour class Associated Builders and Contractors, San Diego

March 21 What Every Contractor Should Know About Prevailing Wages; 6 hour class – Humboldt Builders Exchange, Eureka, California

April 13 and 14 Prevailing Wage workshop for California Public Agencies. www.csda.net

April 19 Montgomery County Prevailing Wage update, Webinar 10am-12pm.

May 24-26 NAHRO Minnesota, Deborah is speaking on May 25, Top Ten Prevailing Wage Tips for Public Agencies.

Want to schedule your own prevailing wage workshop?
We will customize a workshop or webinar for you and your Agency/Company. Contact us at: info@ccmilcp.com 
What Every Contractor Should Know About Prevailing Wages, 3rd Edition.
Available through www.ccmilcp.com $45 inclusive of tax and shipping.
FROM THE INBOX....You asked, we answered!
QUESTION: Why do Davis Bacon determinations have that notice that says the federal minimum wage rate is $15 (or whatever it is each year) instead of just changing the wage rates in the determination?
ANSWER: That is a great question. You may recall that President Obama implemented a higher minimum federal prevailing wage rate for both the Service Contract Act and Davis-Bacon projects. He also tied that to a cost-of-living increase. President Biden has increased that minimum wage requirement for federal contracts to $15 an hour. If you are working in the State of California or in metropolitan areas, this issue never arises as the prevailing wage rate is always over $15 per hour. However, in more rural areas and other parts of the country, prevailing wage rates can from time to time be below $15 an hour.

Just remember that the minimum prevailing wage rate on any direct federally funded project Davis-Bacon project is $15 an hour. Because this increase is directed by an executive order and not by a law passed by Congress, the increase can only be mandated for projects which are direct Davis-Bacon projects. For example: if you’re working on a project for a post office then the minimum $15 an hour prevailing wage will apply. However if you’re working on a housing project that is being administered by a local city’s Housing Authority, then the Davis Bacon and Related Acts apply and the higher minimum prevailing wage rate cannot be forced upon the local entity.

Feel free to send your questions to info@ccmilcp.com
CCMI is not just another firm....

We are not merely a "consulting" firm, but rather a team of individuals who understand the needs of the Public Entity and contractors to "get the project done." Our staff includes retired contractors, auditors, attorneys and industry veterans.