Tag Archives: competitive bidding for public contracts

When is a Prevailing Wage Not Prevailing?

by Donald S. Krueger & D. Martin Stanberry

New York state courts appear primed to resolve important questions about competitive bidding for public contracts in New York City and the ability of contractors to successfully challenge city officials’ actions that directly affect the wage and benefit components of their bids.

Under New York law, a contractor awarded a public contract by the state or a municipality must pay the “prevailing rate” for wages and fringe benefits to their workers performing services under that contract. These prevailing rates are established by the fiscal officer of the municipality awarding the contract.  In New York City, that responsibility falls to the Comptroller.

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