As many contractors in the prevailing wage space already know, prevailing wage work can be a pain in the butt. It can be quite lucrative if done correctly, but a pain, nonetheless. When more requirements are piled on, that’s when contractors decide it’s just not worth it. That is why, with great haste, the Connecticut Chapter of Associated Builders and Contractors rang the alarm that prevailing wage requirements for offsite fabrication were being considered in the Connecticut legislature. After facing strong opposition from business groups, contractors, and others, the Connecticut legislature, at the 11th hour, quietly snuck in language to the state budget bill requiring contracts for offsite custom mechanical fabrication on prevailing wage projects to have a provision that requires the project’s contractors and subcontractors to pay prevailing wages during offsite fabrication.

As prevailing wage consultants, we were concerned about what that would mean for our clients. So, we dug into the provision to tell you precisely what is required, how you can stay compliant, and ensure that you are taking advantage of all the benefits available.

As the rule was passed, it extended the state’s prevailing wage law to cover offsite mechanical custom fabrication for a covered public works project. “Offsite custom fabrication” refers to fabricating systems specifically for a public works project at a site other than the project’s location but still located in Connecticut. It includes plumbing, heating, cooling, pipefitting, ventilation, and exhaust duct systems, but not components or materials that are stock shelf items or readily available. This will take effect starting July 1st, 2025.

Now, you might be asking yourself, how will I deal with these new costs to my business? There are several ways you can navigate these unexpected expenses while unlocking benefits for your business and employees. You can use the extra fringe dollars to pay your employer-sponsored benefits. By funding your companies’ benefit packages with fringe dollars, you can save thousands while offering a great future to your employees and their families.

As prevailing wage consultants, we are here to help. Reach out to Beneco today and see what we can do for you and your business!

Article written by Sam Groves, MBA, Beneco East Coast Consultant, and contact for those in the state of Connecticut.