Governor Pence signed House Bill 1019 repealing the common construction wage statute on public works projects. This repeal is effective for all public work contracts that are awarded after June 30, 2015. Accordingly, any public works contracts that have already been awarded or will be awarded on or before June 30, 2015 will still need to comply with the current common construction wage statute. The law also prohibits a public agency from establishing its own wage scale for a public works project unless federal or Indiana law provides otherwise.
There are other requirements on contractors, subcontractors and public agencies related to public works contracts that are awarded after June 30, 2015. These additional requirements are beyond the scope of this brief e-alert but a couple of the more noteworthy requirements are that contractors and subcontractors performing work on a local public works project such as a school project must now be qualified by either the Indiana Department of Administration or INDOT as well as must comply with the employee drug testing requirements of Ind. Code 4-13-18 if the estimated cost of the public works project is at least $150,000. House Bill 1019 also includes an obligation by public agencies to take certain prescribed actions in the event the public agency “reasonably suspects” that a contractor or subcontractor has violated these other requirements imposed on contractors and subcontractors performing work on public works projects.