A few weeks ago we posted a blog about Senate Bill 7 that is currently before the State Assembly which would deny charter cities state construction funds unless they complied with prevailing wages and regulations.  The San Diego City Council voted on Tuesday to approve a “prevailing wage” ordinance that would require contractors working on city construction and maintenance projects to comply with prevailing wages and regulations.  The vote was split 5-4 but the primarily democratic council voted to pass the proposed bill that was backed by Mayor Bob Filner.

So what does this mean for non-union contractors?  Essentially this will create about $26 million in additional prevailing wage project funding for fiscal year 2014.  While this will cause many projects to be re-bid, it will also cause delays on many of the projects as the prevailing wage regulations must be taken into account and the budgets must be revised.  The ordinance to pay prevailing wages goes into effect for all San Diego City projects beginning January 1, 2014.  The city currently pays prevailing wages on all sewer and water projects exceeding $10 million and on all projects receiving state or federal funding. This new ordinance would cover the rest of San Diego City projects.

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