Do you have a public works improvement project coming up that you are preparing a Bid Advertisement for? Did you know that the date you first advertise your public works improvement project will affect the overall cost of the project? And the date can change depending on whether or not it’s a Leap Year.
Each public works improvement project (i.e. CFD, DIF, or other public financing vehicle) is committed to a single Wage Determination that does not change for the
life of the project. Some workers are entitled to pre-determined wage increases, but overall, the
earlier you can lock in the Wage Determination, the less expensive your project wage costs will be.
Wage Determinations are issued on February 22nd and August 22nd of each year. HOWEVER they
do not go into effect until 10 days after. This means the date that you need to look at when finding
the wage determination is March 3rd for leap years (like this year)/ March 4th (for non-leap years)
and September 1st.
A normal year is broken into two sections:
– Period 1 are projects having a Bid Advertisement date between March 4th to August 31st.
– Period 2 are projects with Bid Advertisement dates between September 1st and March 3rd.
For example, if your project advertised on June 29th, 2023, the project Wage Determination Period
would be 2023-1.
BUT! Since this is a Leap Year the two sections are as follows:
– Period 1 are projects having a Bid Advertisement date between March 3th to August 31st.
– Period 2 are projects with Bid Advertisement dates between September 1st and March 3rd.
For example, if your project advertised on June 29th, 2024, the project Wage Determination Period
would be 2024-1.
If you want your project to still squeeze into the last part of the 2023-2 Wage Determination period,
get those Bid Advertisements out before Sunday, March 3rd! These few dollars, per hour, per
employee, over the course of a multiyear project can add up to significant sums and ultimately lower
your entire project cost. And remember, your Bid Advertisements need to be sent out to all
prospective bidders on the same day and a written record must exist.
Interested in more Prevailing Wage tips? Contact our Director of Labor Compliance, Teresa Osso,
at [email protected]
Interested in learning more about Public Bidding? Contact our Director of Bid Administration, Erica Langham, at [email protected]
***Disclaimer*** All information presented is based solely upon experience, opinion, and research
done. Information presented is not intended to be misconstrued as legal counsel.
Citation(s)
https://www.dir.ca.gov/Public-Works
