Orange, CA -- (SBWIRE) -- 04/14/2017 -- Earlier this month, LCPtracker President and CEO, Mark Douglas, presented to a national audience of trade labor leaders.

In his presentation, he explained that the original intent of the Davis-Bacon Act was to protect local workers and their wages. And, that without prevailing wage laws like the federal Davis-Bacon Act and other state/local prevailing wage laws, local and highly skilled contractors would have trouble winning bids since they pay their workers higher wages and better benefits. Awarding contracts to the lowest bidder seems like a logical opportunity to save taxpayers money. Unfortunately, the low bid winners are often contractors who pay lower wages, hire illegal workers, don't offer benefits of any kind, or pay wages in cash (under the table). These type of contractors often pay their workers for a "day's-wage" (i.e., for a 10 to 12 hour workday) which also leads to their refusal to pay overtime. This often leaves workers dependent on federal and state social subsistence programs like food stamps, Temporary Assistance for Needy Families (TANF) and Aid to Families with Dependent Children (AFDC).

Opponents to the Davis-Bacon Act try to confuse the public with unsubstantiated claims of saving 20% or more on applicable construction projects. In reality, taxpayers pick up a much greater tab, paying for illegal workers' health care, workers' compensation insurance, loss of tax revenue, food stamps, and more.  As more illegal workers pour over the border, taxpayers also pay for their children's school, health care, and other government funded services. 

The claim that taxpayers would enjoy a 20% cost savings on public works projects if the Davis-Bacon Act and other prevailing wage laws are repealed, was debunked by Douglas in the following points:

1. Construction project costs average 20-23% labor and up to 77% material 
2. Prevailing wage rates average 17.5% higher nationally
3. On a $1M dollar project wages increase by $40,000 which is 4%, not 20%.
4. Maximum potential savings is 4-6%

But, this ignores productivity per hour.

Research has shown when construction projects hire skilled, higher-wage workers, these workers finish projects 15% faster. The carpenter builds the wall faster, the plumber installs the drains quicker.

This time saved equalizes the potential wage savings.

Supporting Quotes:

Mark Douglas, President and CEO, LCPtracker, Inc.: "President Trump's goal is to invest 1 trillion dollars into infrastructure which will also create several hundred thousand construction jobs. If we just ensure 25% of those career opportunities go to the disadvantaged, we would transform our inner cities."

"Davis-Bacon and prevailing wage laws create opportunities for women, minorities, veterans, the homeless, the economically disadvantaged, single custodial parents, those with criminal records, those who are chronically unemployed, those with no GED or high school diploma, and those receiving public assistance to obtain jobs that lift them out of poverty and eliminate their need for public assistance. Such careers transform lives and break the cycle of poverty. The beauty of hiring the underprivileged is--once you lift one person out of poverty, you lift up their entire family and all the generations to come."

Suggested tweets:

#Construction industry and compliance experts, #LCPtracker, urge policy makers to support #DavisBacon

#DavisBacon and prevailing wage laws are about creating jobs--jobs that transform people's lives and break the cycle of poverty. #LCPtracker

Additional Resources
- Learn more about LCPtracker solutions: www.lcptracker.com

About LCPtracker, Inc.
LCPtracker, Inc. is a leading software service provider specializing in construction site compliance related software, located in Orange, CA. The main solution, LCPtracker Pro, is a powerful web-based SaaS solution for collecting, verifying and managing certified payrolls and other labor compliance related documents. Our products are available for both desktop and mobile applications. Over 200 government agencies and 200,000 contractors have used LCPtracker for their certified payroll reporting. As a long-standing trusted partner, LCPtracker works closely with government agencies and contractors assigned to public works construction projects.

Contact:
LCPtracker, Inc.
Kerry Sutherland
PR Manager
775-360-6101