RULES AND REGULATIONS RELATING TO PREVAILING WAGES (170-RICR-30-05-08)

Regulation Authority:

RIGL 37-13

Purpose and Reason:

The amendment clarifies the definition of public works contracts by defining the exception to a public works contract. Pursuant to this amendment, where the contractor provides comprehensive, wrap-around, general maintenance and services to public entities, including, but not limited to: janitorial services, the maintenance, servicing and limited replacement of air conditioning, electrical, heating, plumbing, refrigeration and ventilation systems and the limited replacement of structural and cosmetic materials within facilities when the size, type or extent of such facilities is not changed, the contract shall be exempt from the definition of a public works contract. There is one difference between the proposed rule and the final rule, which is that DLT has substituted the word "performs" for "provides" in Rule 8.21.N.2. DLT did not accept arguments against this rule, because DLT believes it is within the power of DLT to promulgate such a rule and believes this rule benefits society. This regulation would, in a limited capacity, establish cost savings for public entities by exempting contractors that provide wrap-around maintenance services from prevailing wage requirements in emergency situations. There is no way to measure the potential savings as they’re unplanned. However, any costs will have a zero net effect due to transfer costs, keeping resources in Rhode Island. The cost transfer would go from Rhode Island employees to Rhode Island public employers and Rhode Island revenue in the form of tax savings.