BENEFITS OF

PREVAILING WAGE
Best Deal for Tax Payers

High-skilled workers finish projects on time and build quality roads and buildings
meant to last leaving tax payers with no cost overruns and lower maintenance
costs over time.

Typical workers not paid the prevailing wage are eligible for thousands of dollars in
public assistance, which costs taxpayers for additional reliance on cash assistance,
food stamps, and Medicaid taxpayers dont save, they subsidize.

Creates Jobs

Projects paying the prevailing wage attract quality, local, experienced construction
workers who deliver high-quality work on time and on budget.

Prevailing wage, also known as common construction wage, helps support local
training programs that provide middle class career opportunities.

Controls Construction Costs

Productivity is the driving force behind the cost of construction. The high level of
training and efficiency among prevailing wage workers save taxpayers costly delays
and errors.

Skilled construction workers on prevailing wage projects are on average 15% more
productive than less skilled workers on non-prevailing wage projects.

Drives Economic Development

Studies show that for every dollar spent on a prevailing wage project $1.50 in
economic activity is generated in the community.

Thats money spent at local businesses such as restaurants, shopping malls, and
grocery stores spurring additional job creation that keeps local communities and
businesses strong.

My job for the Marines is construction, and the Helmets to

Hardhats program gives me the opportunity to advance my
skills doing work I can be proud of for the citizens I serve.
Common construction wages support apprenticeship programs
which have helped me find work and make a good living.
TJ Trinosky,
Marine Reservist and 3rd Year Apprentice

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Prevailing
Wage Facts
Fact: Eliminating prevailing wage will
create a tax increase for residents.
Workers who earn minimal wages
are frequently pushed into relying on
government subsidies for healthcare,
housing, food stamps and other social
services. In fact, a higher share of
construction workers in states without
a prevailing wage law do not have health insurance compared to workers in
states with a prevailing wage law. This means they have to rely on expensive
emergency room care subsidized by taxpayers. Also, more workers in nonprevailing wage law states live in public housing subsidized by the taxpayer.
Fact: Eliminating prevailing wage is bad for the economy. Studies show that a
vast majority of work is performed by in-state contractors in states with a strong
prevailing wage law. Local workers earning the prevailing wage spend disposable
income at local businesses and on services, which generate sales tax revenue
and builds general funds. Without prevailing wage, Indiana would lose $21
million and Kentucky would lose $20 million in state and local tax revenues.
Fact: Eliminating the prevailing wage will not lower construction costs.
Direct construction
Removing Prevailing
labor and fringe benefits
Wage Increases Construction Costs
accounted for only 23% of
total building construction
costs in Indiana. To save
$132
costs by reducing wages is
mathematically impossible
$111
$105
$98
without illegally paying
$93
$94
workers below minimum
wage. In fact, Ohios costs
increased when they
exempted schools from
prevailing wage.
URBAN SCHOOLS

RURAL SCHOOLS

Indiana Cost Per Square Foot

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SUBURBAN SCHOOLS
Ohio Cost Per Square Foot

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