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Change orders on prevailing wage jobs?

In California: If I negotiate a change order wherein the work will not be performed until the next prevailing wage period am I able to estimate the future wage rate based upon previous escalations? My inclination is to allow a reasonable projection of labor rates or pay current rates then entertain a change order for escalation later on. Can you add any info?

1 reply

Mar 3, 2020

Change orders can present complex issues all on their own, much less when prevailing wages are involved. Unfortunately, however, I'm not familiar with the ins and outs of the California prevailing wage requirements, and I don't have experience processing payments - much less on a job with prevailing wages. So, while your approach does make logical sense, I'm not sure whether that's an acceptable way to calculate future wages. For detailed insight, it might be wise to reach out to the California DIR directly to ask about how prevailing wage rates should be projected going forward. Alternatively, might be helpful to reach out directly to a construction finance professional. Or reaching out to a public contracting and procurement expert like Mike Purdy could be helpful, too.

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