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PREVAILING WAGES ON STATE PROJECTS

Act 166 of 1965

AN ACT to require prevailing wages and fringe benefits on state projects; to establish the requirements and responsibilities of contracting agents and bidders; and to prescribe penalties.

History: 1965, Act 166, Eff. Mar. 31, 1966.

The People of the State of Michigan enact

408.551 Definitions. [M.S.A. 17.256(1) ]

Sec. 1. As used in this act: (a) "Construction mechanic" means a skilled or unskilled mechanic, laborer, worker, helper, assistant, or apprentice working on a state project but shall not include executive, administrative, professional, office, or custodial employees.

(b) "State project" means new construction, alteration, repair, installation, painting, decorating, completion, demolition, conditioning, reconditioning, or improvement of public buildings, schools, works, bridges, highways, or roads authorized by a contracting agent.

(c) "Contracting agent" means any officer, school board, board or commission of the state, or a state institution supported in whole or in part by state funds, authorized to enter into a contract for a state project or to perform a state project by the direct employment of labor.

(d) "Commissioner" means the department of labor.

(e) "Locality" means the county, city, village, township, or school district in which the physical work on a state project is to be performed.

History: 1965, Act 166, Eff. Mar. 31, 1966; --Am. 1978, Act 100, Eff. Mar. 30, 1979 .

408.552 Contracts for state projects; minimum wage provisions, exceptions. [M.S.A. 17.256(2) ]

Sec. 2. Every contract executed between a contracting agent and a successful bidder as contractor and entered into pursuant to advertisement and invitation to bid for a state project which requires or involves the employment of construction mechanics, other than those subject to the jurisdiction of the state civil service commission, and which is sponsored or financed in whole or in part by the state shall contain an express term that the rates of wages and fringe benefits to be paid to each class of mechanics by the bidder and all of his subcontractors, shall be not less than the wage and fringe benefit rates prevailing in the locality in which the work is to be performed. Contracts on state projects which contain provisions requiring the payment of prevailing wages as determined by the United States secretary of labor pursuant to the federal Davis-Bacon act (United States code, title 40, section 276a et seq.) or which contain minimum wage schedules which are the same as prevailing wages in the locality as determined by collective bargaining agreements or understandings between bona fide organizations of construction mechanics and their employers are exempt from the provisions of this act.

History: 1965, Act 166, Eff. Mar. 31, 1966.

408.553 Prevailing wage and fringe benefit rates; schedule as part of specifications and bid form. [M.S.A. 17.256(3) ]

Sec. 3. A contracting agent, before advertising for bids on a state project, shall have the commissioner determine the prevailing rates of wages and fringe benefits for all classes of construction mechanics called for in the contract. A schedule of these rates shall be made a part of the specifications for the work to be performed and shall be printed on the bidding forms where the work is to be done by contract. If a contract is not awarded or construction undertaken within 90 days of the date of the commissioner's determination of prevailing rates of wages and fringe benefits, the commissioner shall make a redetermination before the contract is awarded.

History: 1965, Act 166, Eff. Mar. 31, 1966 .

408.554 Prevailing wages and fringe benefit rates; establishment; public hearings. [M.S.A. 17.256(4) ]

Sec. 4. The commissioner shall establish prevailing wages and fringe benefits at the same rate that prevails on projects of a similar character in the locality under collective agreements or understandings between bona fide organizations of construction mechanics and their employers. Such agreements and understandings, to meet the requirements of this section, shall not be controlled in any way by either an employee or employer organization. If the prevailing rates of wages and fringe benefits cannot reasonably and fairly be applied in any locality because no such agreements or understandings exist, the commissioner shall determine the rates and fringe benefits for the same or most similar employment in the nearest and most similar neighboring locality in which such agreements or understandings do exist. The commissioner may hold public hearings in the locality in which the work is to be performed to determine the prevailing wage and fringe benefit rates. All prevailing wage and fringe benefit rates determined under this section shall be filed in the office of the commissioner of labor and made available to the public.

History: 1965, Act 166, Eff. Mar. 31, 1966 .


408.555 Prevailing wage and fringe benefit rates; posting by contractors. [M.S.A. 17.256(5) ]

Sec. 5. Every contractor and subcontractor shall keep posted on the construction site, in a conspicuous place, a copy of all prevailing wage and fringe benefit rates prescribed in a contract and shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each construction mechanic employed by him in connection with said contract. This record shall be available for reasonable inspection by the contracting agent or the commissioner.

History: 1965, Act 166, Eff. Mar. 31, 1966.

408.556 Prevailing wages and fringe benefits; failure to pay, termination of contract; contractor's liability and sureties. [M.S.A. 17.256(6) ]

Sec. 6. The contracting agent, by written notice to the contractor and the sureties of the contractor known to the contracting agent, may terminate the contractor's right to proceed with that part of the contract, for which less than the prevailing rates of wages and fringe benefits have been or will be paid, and may proceed to complete the contract by separate agreement with another contractor or otherwise, and the original contractor and his sureties shall be liable to the contracting agent for any excess costs occasioned thereby.

History: 1965, Act 166, Eff. Mar. 31, 1966.

408.557 Violation of act; penalty. [M.S.A. 17.256(7) ]

Sec. 7. Any person, firm, corporation, or combination thereof, including the officers of any contracting agent, violating the provisions of this act is guilty of a misdemeanor.

History: 1965, Act 166, Eff. Mar. 31, 1966.

408.558 Inapplicability of act. [M.S.A. 17.256(8) ]

Sec. 8. The provisions of this act shall not apply to contracts entered into or the bids made before the effective date of this act.

History: 1965, Act 166, Eff. Mar. 31, 1966 .