Contractors and subcontractors bidding on California’s largest public works projects will soon face a new labor-cost risk: the wage rates they are required to pay may change after they submit their bids. California’s prevailing wage rules generally set the minimum pay for workers on public works projects based on the type of work and the project’s location. Under Assembly Bill 1198 (“AB 1198”), updated prevailing wage rates may apply during construction to public works contracts awarded or advertised for bid after July 1, 2027 if the awarded value of the prime contract is $35 million or more. On those projects, the wage rates that applied when the project was first advertised may not remain the same throughout the work.
Continue Reading Bid Today, Pay a Different Rate Tomorrow? California AB 1198 Changes Prevailing Wage Rules for Large Public Works Projects







