Public WorksQuestion 586 of 163280% of test-takers answer this correctly

Maria's masonry company is bidding on a $1,500 project to repair a privately owned strip mall. The owner is paying entirely with private funds. Are prevailing wages required?

a.Yes, because the contract is over the $1,000 line
b.No, the work is not paid for out of public funds
c.Yes, because all California construction requires it
d.Only if the city issues a building permit for the job

Explanation

Labor Code §1720(a)(1) makes public funding the test: prevailing wage attaches to work done under contract and paid for in whole or in part out of public funds. A privately owned strip mall paid for entirely with private money is not a public work, so the §1771 threshold never comes into play. The $1,000 figure only marks where prevailing wage begins on work that is already public, and it does not convert a private job. No statute imposes prevailing wage on all California construction. A building permit is a code-enforcement act and spends no public money on the project.

Law Reference: Labor Code §1720(a)(1); §1771

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