Public Works Contracts in California are Challenged

State of the Industry

When public contracts must be awarded to the “lowest responsible bidders,” law-abiding contractors cannot compete with those contractors that cheat in many smaller dollar construction projects.

Private actions to collect unpaid prevailing wages have seen workers and witnesses threatened, intimidated, and physically harmed.

Studies have shown that quality workmanship and finished products suffer at the hands of contractors who inherently cut corners in materials and labor standards.

Cheating contractors siphon billions of dollars a year away from legitimate contractors, their workers, public agencies, and the state and federal tax base this country depends on.

Collective efforts by ethical participants in public works construction can stop and prevent these abuses. The CCC is dedicated to serve such efforts.

CCC Looks to the Future

Public works laws require contracts to be awarded to the lowest responsible bidder. Bidders promise to comply with the prevailing wage and other labor laws. If, over time, bidders are not compelled to live up to those promises, the only successful bidders will be those whose promises are empty. Labor law compliance is necessary to ensure that the public gets the construction for which it has contracted.

The CCC supports mandatory and non-mandatory labor compliance programs and encourages law-abiding contractors and workers on public works to report Prevailing Wage Law and labor violations. An effective compliance program puts those contractors who are inclined to cheat on notice that the labor standards will be closely monitored and enforced, minimizing their opportunity to cheat.