When preparing a bid for a California public works project subject to prevailing wage requirements, which cost component typically increases the most compared to private work?
Correct Answer
A) Labor costs due to prevailing wage and benefit rates
Under California Labor Code Section 1770-1781, public works projects require payment of prevailing wages and benefits as determined by the Department of Industrial Relations. These rates are typically significantly higher than market rates for private work, making labor the most substantially increased cost component when bidding public projects.
Why This Is the Correct Answer
Under California Labor Code Section 1770-1781, public works projects require payment of prevailing wages and benefits as determined by the Department of Industrial Relations. These rates are typically significantly higher than market rates for private work, making labor the most substantially increased cost component when bidding public projects.
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