MD School System Blames Prevailing Wage Law for Increase in School Construction Costs

Frederick High School construction costs have risen $17 million with more than half being attributed to prevailing wage

The Frederick News-Post

The total costs of the new Frederick High School in Frederick County, Md., has jumped from its initial $100 million estimate to roughly $115 million, and the Frederick County Public School (FCPS) system believes its because of the new prevailing wage law.

Construction costs on the project have risen from the estimated $80 million to $97 million. According to Ray Barnes, the chief operating officer for FCPS, more than half of that $17 million increase can be attributed to prevailing wage. 

In 2014, the Maryland General Assembly modified the prevailing wage laws so if the state provides 25% of funding for school construction, the prevailing rate must be paid.

The school system reached out to each of the contractors asking for rates had the prevailing wage not been applied. The school system staff determined it would have saved approximately $9.2 million without prevailing wage. Only three out of the 17 contractors the school has worked with said their bid wouldn't have changed with prevailing wage.

Members of Frederick County's state delegation plan to address the prevailing wage law. Multiple bills may be filed offering amendments to prevailing wage including reversing the 2014 law and reverting to the 50% threshold, removing prevailing wage entirely, and grandfathering Frederick High into the old prevailing wage law to reduce its cost.

(more on the prevailing wage law debate at the MD high school construction project...)

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