Last year the city set up a grant for old town businesses to improve their buildings and the city would help pay for some of it. The problem is that the city requires you to hire contractors that pay a prevailing wage. Our office needed a new roof. We received some bids from various contractors,. none of which pay the prevailing wage. The bids varied from $9000 to $15,000. I have to assume that a prevailing wage would have made it that much higher. Why would a business pay more for the work to receive a portion of it back from the city? If we paid $15,000 instead of $9000, we wouldn’t get enough back to make it worth it. Not sure why the city would require prevailing wage on someone else’s business just to receive a grant. I can see for their own work on their buildings or bids.
Look up Davis-Bacon and you will see why the gov can’t do anything for a reasonable cost.
“A. The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate).”
But if you actually look at prevailing wage you will see that it is more tied to the minority of union workers plus some $$…. It is ridiculous. The union represents such a small percentage of tradesmen that it is way out of bounce.. at least in the electrical trade. My numbers may be off by now but years ago the union only represented < 25% in the electrical trade.
They can do prevailing wage, but they have to certify their payroll if I remember correctly.. Bottom line is that it is most likely not worth your accepting the money from the city
And there was confusion on the process because the grant application was different than the historical commission process. We received an email saying we were good to go, then after we had the roof done and submitted it to the city, they said we shouldn’t have done it yet because they didn’t approve the grant yet. Then they asked about the prevailing wage stuff. What a waste of time.