What is a Contract Match?

Why is it important to you?

Wisconsin laws regulating the prevailing wage survey provide for a “contract match” to a collective bargaining agreement (CBA) rate and benefit that is on file with DWD.  That means employers who report a CBA rate and the correct “allowable fringe benefit” on the survey are able to set a rate for prevailing wage that provides them the “current rate” and future increases contained in the matched collective bargaining agreement.

It takes only 500 work hours to set a rate.  Private hours are what DWD looks at FIRST as to what sets the prevailing wage in that given area (except Project Type C DOT/Airport which is set by white sheet hours).  The data reported for each classification is evaluated and the new rate is set from (1) a majority of the hours reported or if no majority exists, (2) a weighted average with the prevailing rate selected at 51%.

Example of two contractors who both set a local street prevailing wage rate and what the impact of a “contract match” would do for the CBA contractor

Work for survey period reported 6/1/14-5/31/15 New Prev Wage Rate set for 1/1/16  Prev Wage Rate 6/1/16 The Difference
CBA Contractor Reports CBA CBA

$2.55 per hour above rate actually reported on survey.  CBA gets current rate and future increases of agreement on file!  Very important for multi-year jobs!

HBR:  $37.22 HBR:  $37.77 Gets future increase as of June 1, 2016 of $1.30 applied to the rates!

FBR:  $21.15

(2014 match to H&H)

FBR:  $21.85

Gets current rate of 2015 H&H contract in effect.

Total Package:  $58.37 Total Package:  $59.62 Total Package:  $60.92
Non CBA Contractor Reports Non CBA Non CBA

Non CBA rate reported from 2014/2015 survey period stays at $38.00 thru the end of 2016 making it virtually impossible for a CBA contractor to compete since the CBA contractor must pay their contract rate regardless.

HBR:  $30.00 HBR:  $30.00 HBR:  $30.00
FBR:  $8.00 FBR:  $8.00 FBR:  $8.00
Total Package:  $38.00 Total Package:  $38.00 Total Package:  $38.00

 ** A contract match also protects “premium rates” as part of the prevailing wage rates.  If there is no match, the premium rates also are lost in addition to the above.