By Jonathan 
Outlined below are the five most common public works compliance errors made by contractors, which should be avoided in 2025.
1. Misclassifying employees
The Mistake:
Assigning the wrong job classification to a worker is one of the most frequent—and expensive—errors. Even unintentionally, you are underpaying if a laborer is performing work that warrants a higher classification and payment rate.
The Risk:
You risk facing back pay orders, penalties, interest, and potential harm to your company’s reputation.
How to Avoid It:
- Use official classification guides issued by the relevant labor department.
- Please ensure that job duties are reviewed on-site regularly.
- When in doubt, ask for clarification from the awarding agency or consult a l&i compliance washinton specialist.
2. Failing to Pay the Correct Prevailing Wage Rate
The Mistake:
The mistake involves relying on the wage chart from the previous year or failing to consider wage increases that occur mid-project.
The Risk:
There is a risk of underpayment violations, retroactive pay adjustments, and possible disqualification from future public projects.
How to Avoid It:
- Always verify the current wage determination at the start of each project.
- Monitor for updates during the project’s lifecycle.
- Set calendar reminders for any scheduled wage increases.
3. Missing or Incomplete Certified Payroll Reports
The Mistake:
The mistakes include skipping reports, submitting them late, or including incorrect or incomplete information.
The Risk:
The risk includes withholding of progress payments, triggering investigations, and attracting unnecessary attention from enforcement agencies.
How to Avoid It:
- Use automated software to streamline submission and error checks.
- Please ensure that reports are submitted promptly—typically on a weekly basis in most jurisdictions.
- Please ensure your admin team is well-versed in the reporting requirements specific to each project.
4. Not Meeting Apprentice Ratios
The Mistake:
The error occurs when the required number of apprentice hours is not included, or when apprentices from registered programs are not utilized.
The Risk:
Potential risks include fines, contract violations, and challenges in securing future bids.
How to Avoid It:
- Partner early with a registered apprenticeship program.
- Keep a log of apprentice hours and classifications.
- Confirm apprenticeship requirements for each specific job, as they can vary by trade and location.
5. Improper or Unverified Fringe Benefit Credit
The Mistake:
People often make the mistake of claiming fringe benefits, such as health insurance or retirement, as part of their wage package without the necessary documentation.
The Risk:
You run the risk of being found in violation of the prevailing wage rules and facing an order to pay the difference in cash.
How to Avoid It:
- Maintain detailed records of all fringe contributions.
- Ensure that fringe benefits are bona fide (approved by the Department of Labor or applicable agency).
- Please consult your benefit provider to ensure dir consulting california, rather than making assumptions.
Final Thought
Public works compliance isn’t just a paperwork exercise—it’s part of your license to operate in the government contracting space. Getting it wrong can cost far more than just money. But the good news is, with the right systems and a proactive approach, you can avoid the most common pitfalls.