Committee flags prevailing-wage changes as risk to project cost certainty
Staff warned that AB 1198's change to apply prevailing wage after procurement could increase contractor contingencies and claims and reduce bid certainty for Roseville public works projects.
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Rob Bequera told the committee that AB 1198 would change prevailing wage determinations to apply after a project is underway, potentially altering cost estimates and increasing contractor contingencies. "Applying the rates after the project is underway and procurement has happened, could reduce the certainty of city's estimates, bids, and awards, and potentially increase contractor contingencies and claims," Bequera said, explaining why the city remains opposed and will seek cleanup language from the governor's office.
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