Does the prevailing wage law
apply when a private developer constructs public improvements as part of
a development and then dedicates the improvements to the municipality?
It depends on the type of development.
If the public improvements were constructed by the developer as part of a
commercial, industrial, or any other non-residential development, then
the street, bridge, sanitary sewer or water main project is subject to
the prevailing wage law. Wis. Stat. sec. 66.0903(2)(d). However, if the
public improvement project is part of a residential development, it may
be exempt from the prevailing wage law because Wis. Stat. sec.
66.0903(5)(g) expressly states that the prevailing wage law does not
apply to: “A road, street, bridge, sanitary sewer, or water main
project that is a part of a development in which not less than 90% of
the lots contain or will contain 2 dwelling units or less, as determined
by the local governmental unit at the time of the approval of the
development, and that, on completion, is acquired by, or dedicated to, a
local governmental unit, including under s. 236.13(2), for ownership or
maintenance by the local governmental unit.”