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ODOT Bidders Be Advised - Borrow/Waste Areas, Batch Plants, Etc. Within 2 Miles of Project May Require Payment of Prevailing Wages

Recently, we published notice in our Newsletter and on our website that ODOT had again revised its Trucking Guidelines effective May 2021. The Guidelines contain provisions for determining when other work areas not located on the site of permanent construction (batch plants, borrow and waste areas, etc.) but which are dedicated exclusively, or nearly so, to the performance of the contract or project may be considered part of the site of work and require payment of prevailing wages.

The key change is that ODOT will now evaluate such facilities to determine if they are site of work if they are located within two (2) miles from the project limits. They continue to state that each project could have many variables and therefor will be evaluated on a case-by-case basis. Evaluations will be conducted at the site of work to determine whether prevailing wage must be paid. OCA believes the timing of the evaluation is problematic in that it is preferable to know if the site requires payment of prevailing wages prior to bid submissions, yet because most bidders prefer to keep the location of such sites confidential for competitive reasons, they will be hesitant to reveal them for discussion and consideration in pre-bid meetings where other bidders are present.

OCA only became aware of the policy change when ODOT District Compliance personnel enforced its provisions on a project successfully bid by an OCA member prior to the effective date of the revision. Though that issue was resolved because the borrow area was determined to be a commercial site, and not dedicated exclusively to the project, OCA did express concerns to ODOT about its attempts to apply the policy retroactively and about the propriety of the site of work provision.

ODOT has taken varied approaches to the site of work determination in its past Trucking Guidelines. Prior to 2016, ODOT considered any such site, dedicated exclusively or nearly so to the project to be part of the site of work if it was located within one mile as the crow flies from the project limits. This caused confusion among bidders, as many measured the distance by driving it. In some cases, ODOT compliance personnel would later determine that the site required prevailing wages when “as the crow flies” measurements were determined. ODOT changed their policy in 2016, advising OCA that they were returning to the “federal interpretations” for determining when a dedicated facility was considered to be site of work for purposes of requiring payment of prevailing wages. No specific distance was stated. Now, they have changed their policy again, expanding the distance of consideration out to two (2) miles.

On July 6, 2021, OCA President, Chris Runyan forwarded a letter to ODOT Director, Jack Marchbanks, expressing OCA’s concerns about the May 2021 revisions to ODOT’s Trucking Guidelines, particularly as they relate to site of work considerations. Click here to review the OCA letter.

ODOT Director, Marchbanks replied to OCA on July 16, 2021. A copy of his response can be viewed here.

The bottom line for ODOT bidders is that for now, ODOT will continue to implement its “two-mile” rule for evaluating areas such as borrow and waste areas and batch plants that are dedicated exclusively, or nearly so to the project to determine if prevailing wages must be paid for work or hauling that occurs there.

If you have any questions about this article or the ODOT Trucking Guidelines, site of work provisions, please contact Chris Engle or Mark Potnick in the OCA office.

News

Blue Book and Custom Rates

A member recently contacted OCA staff and expressed frustration over basic pieces of equipment not being available in Equipment Watch’s standard available Blue Book rental rates and having to request “custom rates” more and more often. A contractor is only allowed so many custom rate creations per year before they are charged additional fees. Rates for some pieces of equipment that they have had in their fleet for years are no longer available in their software.

ODOT has been contacted and agrees that the service seems to be deteriorating. They have contacted other DOTs and all use Blue Book rates. There is no competition for this type of product that anyone is aware of. The Army Corps of Engineers have established ownership rates, but it is a small limited table of equipment.

ODOT does have a work around for pieces of equipment not in the Blue Book. The specs allow the invoice price of the equipment x 6% as the monthly rate. Contractors would have to submit the invoice as back-up and estimate the operating costs from prior years.

If you are also experiencing this situation with Blue Book rates, please let Chris Engle know.

August 10-12, 2021 Chicago, Ill

This is your chance to break away from your screen and network in-person with other industry peers. AGC's IT Conference for Construction Professionals is the perfect opportunity to learn about the latest technologies and engage with other construction industry professionals. This conference will be held in Chicago on August 10-12 and features a keynote address by Mitch Holthus.

Agenda details are now available. Besides multiple vendor tech demonstrations, informative keynote addresses and invaluable networking sessions, attendees will learn about inexpensive solutions to common IT challenges, the keys to success and leadership, and much more. Check out the robust agenda here and check back often for updated information!

We know that it’s hard work being an IT professional within the construction industry. That’s why we want you to join us at our upcoming conference so you can get back on track with your career goals while meeting new people who share your passion for building great things!

Register Today...

ODOT Renews Efforts to Monitor Workforce Diversity Goals

Per Proposal Note 20, Prime Contractors are required to meet federal workforce requirements for female and minority workers on ODOT’s federally funded heavy highway projects. ODOT will be renewing its efforts to monitor progress towards project diversity goals, but due to the large number of projects statewide and limited resources that can be devoted to this effort, ODOT will monitor projects over $20 million only.

ODOT is holding a series of outreach meetings with stakeholders and interested parties to inform them of ODOT’s renewed efforts to monitor the compliance of Prime Contractors to meet the workforce diversity goals on ODOT projects with a cost of $20 million and higher. ODOT will partner with Contractors who may need assistance with meeting the goals. Most of these projects will be located in urban areas.

For more information on this subject, click here. If additional information is needed, feel free to contact Deborah Green, Administrator, Office of Business & Economic Opportunity, [email protected], or Lynn Stevens, Regional Outreach Manager, [email protected].

Application Period Ends This Week for the 2021-2022 OCA Future Leaders Forum

There are a few spots left - Get your application in quickly

Webinar - Environmental Regulations of Businesses in Your Community

August 12, 2021 at 10:00 - 11:00 am EST

Many environmental regulations affect businesses in your community. Ohio EPA regulates sources of air pollution, waste handling, wastewater and storm water discharges, and more. This webinar will provide information related to the environmental regulations affecting both large and small businesses in your community, and explain Ohio EPA's permitting, inspection and enforcement procedures.

The webinar will be an overview of Air Pollution Control Regulations, Water Regulations, Solid and Hazardous Waste Regulations, also hear more about Ohio EPA’s Compliance Assistance Services that can help you better understand and manage these regulations.

Click here for more information and to register for the webinar.

AGC Needs Your Help to Measure the Scope of Construction Labor Shortages by Taking a Quick Survey

The survey will close on August 13th.

The construction industry has experienced some very significant and sudden changes during the past few months that have led to dramatic changes in demand for work and the need for new workers. We need to understand exactly how those changes are impacting the industry’s current workforce needs to better be able to advocate for measures to help the industry’s labor needs in both the short- and long-term. That is why we are asking you to take a few minutes to complete the following workforce survey that we and our partners at Autodesk have prepared. The more people understand the scope, and consequences, of current labor market conditions, the more likely they are to enact measures to help meet the industry’s needs. The more members who take the survey, the better able we all will be to describe labor market conditions where you operate.

Quick Links to On-line OCA Resources

Upcoming Events Click here for current events

Safety Talks When Must Employers Notify OSHA?

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