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Prevailing Rate Systems


The prevailing wage is defined as the hourly wage and the usual benefits and overtime paid to the majority of workers, laborers, and mechanics within a particular geographic area. Prevailing wage regulations are intended to assure that public construction projects do not destabilize the local construction industry, support local economies, and advance workforce development, modern building practices, and greenhouse gas reduction. The Office of Personnel Management has responsibilty for administering the prevailing rate system in the U.S.

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