Compliance or confusion? Six important lessons have been learned about the implementation of Labor Compliance Programs since the passage of AB 1506, which introduced districts to new state requirements and more state agency oversight of school facilities projects

Leadership, May-June, 2004 by Ernest Silva, Roland P. Williams

Third party providers should be capable of acting as independent agents of the school district. Contractors that hire building trade employees and report prevailing wage data on your project or other district projects may have potential conflicts of interest. Some providers may have more limited experience with the full range of a school district's construction management role than others. Independence and broad construction experience are important in both the auditing functions and site investigation functions of an LCP.

Lesson 3: Know the full costs of LCP services

Pricing for services may be fluid for some time. With the suspension of the SAB funding regulations, it is difficult to predict what will ultimately be available. However, administrators should be aware that the SAB proposal would allow an increase in the grant amount to cover the state's share of LCP costs. The proposal is an adjustment of a sliding scale, with a minimum flat rate for the smallest projects.

While costs may vary depending on the size and complexity of a project, you should know up front what you will be paying for and what rates you will be charged. Districts should take a hard look at the variety of services included. Some proposals do not include enforcement costs. Enforcement activities include the withholding of payments to contractors, document preparation and bearings. These costs can vary substantially and will likely involve attorney time.

Some county offices and other cooperatives have developed plans to prevent layoffs by assigning LCP duties in the light of budget cuts. Some providers are willing to provide services in a manner that both cuts costs and saves jobs in this tough budget environment. Such providers will train administrators or other staff to provide the level of service a cooperative is comfortable with, and then contract to provide the remaining services.

Such cooperation may result in the more efficient utilization of public employees, significant cost savings and better enforcement of each agency's LCP. It may also permit district and county offices to pool purchasing power and cut the best deal possible with an LCP provider. The critical component of a successful LCP is your labor compliance officer, whether a school district administrator or a third party consultant.

Related professional services may also include legal advice on the adoption or implementation of a program, legal representation for implementing the enforcement provisions of the labor code, or advocacy before state agencies and the Legislature to address unique district conditions. Consultants hired to provide a plan or services should have a mechanism in place to ensure that they keep their plan and services current in the midst of a rapidly changing regulatory environment.

Lesson 4: Tell all contractors and subcontractors about job classifications

The basic requirement to pay a trades worker the entitled wage seems straightforward. But Employee Craft Classification identification is open to misinterpretation. This issue is complicated because the prevailing wage depends on both the geographic region in which the work is performed and the precise description of the worker.