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A California contractor is preparing a bid for a public works project. According to California Labor Code prevailing wage requirements, what must be included in the cost estimation for labor?

Correct Answer

A) Prevailing wage rates as determined by the Department of Industrial Relations

California Labor Code requires public works projects to pay prevailing wages as determined by the Department of Industrial Relations. Contractors must use these specific rates in their cost estimation, not standard market rates or minimum wage calculations.

Answer Options
A
Prevailing wage rates as determined by the Department of Industrial Relations
B
Minimum wage rates with overtime calculations
C
Standard union wages plus 10% markup
D
Average market rates for the geographic area

Why This Is the Correct Answer

California Labor Code requires public works projects to pay prevailing wages as determined by the Department of Industrial Relations. Contractors must use these specific rates in their cost estimation, not standard market rates or minimum wage calculations.

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