What are the notification requirements of a municipality regarding a project that falls within the scope of the Prevailing Wage Act?
Section 4. (a-1) of the Act sets forth the requirement that the Public Body or other entity awarding the contract shall cause to be inserted into the project specification and the contract a stipulation that not less than the prevailing rate shall be paid to all laborers, workers and mechanics performing work under the contract. Section 4. (a-2) provides for the same requirements where the contract is awarded without public bid. Section 4. (c) sets forth the bonding requirements under the Act, and Section 4. (d) requires the Public Body to notify the contractor of a revised rate established by the Department.
A Public Body does not comply with the requirements of the Act by providing a general statement to the effect that the contractor must comply with all applicable laws or stating that the project is subject to the Prevailing Wage Act if applicable. The statement required by the Public Body under the Act must be a statement that states specifically the project is or is not subject to the provisions of the Prevailing Wage Act.
See sample language for proper written notifications.
What if a Public body fails to properly notify a contractor regarding a public works project subject to the Prevailing Wage Act?
If a Public Body fails to provide proper written notification to a contractor that is subject to the Prevailing Wage Act, Section 4. (a-3) holds a Public Body financially responsible for any interest, penalties or fines assessed by the Department.
What makes a project subject to the Act?
All fixed works constructed by any public body or paid in whole or in part with public funds, including all projects funded or financed in whole or in part with bonds, grants, loans or other funds made available by or through the State or any of its political subdivisions, or undertaken by an institution supported in whole or in part by public funds. Landscape or modifications to real estate are included within the definition of fixed work. A public works does not have to have a final use for the public.