Contracts FAQ 18

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.”