AB 199-Chu-D was amended on Thursday, April 6, 2017
CALPASC is encouraged by the two good outcomes last week, but is now preparing for the significant challenge of AB 450.
First, the good!
AB 199-Chu-D, was amended on Thursday, April 6, 2017. The amended bill now exempts from payment of prevailing wages private residential projects "unless the projects are built pursuant to an agreement with a state agency, a redevelopment agency, a successor agency to a redevelopment agency when acting in that capacity, or a local public housing authority". The underlined wording is now what will change in the law on January 1, 2018, unless AB 199 is amended again. What this means is that subsidized housing projects that have an agreement with a city for construction, instead of a redevelopment agency; will be subject to prevailing wages.
CALPASC members will need to be careful when bidding possible infill or other projects, as to whether prevailing wages are triggered. Attached are draft templates that members and their attorneys may consider putting in bids on new projects, to be protected from a project later deemed to be subject to prevailing wages. These templates are for educational purposes only, and are not attorney advice to anyone without a direct attorney client relationship. CLICK HERE for template on proposed language for Bid Proposal and CLICK HERE for Indemnity Language. (Require Member Log-In).