Plz 'Splain Prevailing Wage

The company employs an 'estimator' whose job it is to find out what the cost of the job is and add in a certain percentage of profit and bid that amount to do the job.

Some companies 'buy' a job by low bidding below profit margin for tax purposes and to secure other big jobs down the line by showing good performance and staying under budget. Oftentimes they can score 'as built' stuff and T +M (Time and Material) for extra work on the job or when problems arise that weren't anticipated in the contract which is pure profit for the company.

Prevailing Wage laws started way back in the 30's with a bill called the Davis Bacon Act. Basically was to prevent workers from depressed areas of the country from moving into better paying areas of the country and driving down wages. There was also a racist tint to it early on which has come full circle now to protect minority workers in the modern age.

 

Raises don't occur much in the trucking business, when they do its usually only a penny here and there so they still have plenty of money left out of the money they are charging the customer. Some may not even give you a raise or either only give you a raise if they get one themselves. just depends on the company.

 

Prevailing wage is what a union employee would be paid including all benefits, any job that has federal money involved has to pay prevailing wage. The employee makes more money, and it is reflected in the job price. I have done jobs that were prevailing wage, and my prices were increased to cover the increased employee wages and increased profit margin. I had a plumbing shop and increased my labor rate from 75 to 125 an hour for prevailing rate jobs. A truck that is on a prevailing wage job should make more than a regular job, could be whoever is paying for extra trucks is trying to pocket the extra cash.

 

The trucks are paid the same, the drivers are paid more at a prevailing wage job. Me, as an owner operator, am paid at my regular hourly fee.