Benefits of Prevailing Wage
Prevailing wage is a form of payment done by governments to in an hourly rate to workers working on construction sites that are funded by the government. Besides the basic salary, the people also earn a fringe benefit for the work done. Below are the benefits of prevailing wage.
There is a high chance of construction projects funded by prevailing to be done on time and on the earlier planned budget. This is because the government has to take care of every incurred labor costs. The workers are also diligent enough to work effectively since they are satisfied in what they are remunerated with. This creates a balance that motivates the workers to work more since the number of hours determine their pay. Additional effort can also be made so that the worker may get the other little benefits. Since the hourly pay is constant, there are less likeliness for extra funds to be spent on the project.
Since the workers involved are skilled in their area of work, there is a low chance for workers of them messing up. This means that they have the ability to do a better work at the estimated budget. If that’s the case then, then the costs that could be incurred in handling projects that could be redone due to errors are not utilized hence making it more cost effective. There are also lesser amounts of funds spent in the minor components in construction. This includes things such as fuel, construction equipment and materials. A cost-effective project is of great advantage, and this can best be achieved through the concept of prevailing wage.
Since most of the workers employed would be local, or if not local, they would be working on local projects, it means that the government will grow on its taxes and build on the economy. The state of lives of the constructors will also be improved hence making the general index of living of the people around the area or the whole country in a whole to improve. A country’s economic well being affects the general well being of the people hence benefit the whole nation. That is from the worker’s families to the businesses around.
Prevailing Wage acts as a way of empowering community members through employment. This is mostly seen in war veterans whose transition is made easier through being offered jobs. This ensures that they effectively fit in to the society. The empowerment of construction workers leads to the growth of other industries since these people would need to sustain themselves. This means that more jobs will be created in other fields hence every one is able to benefit either directly or indirectly.
Through prevailing wage, the community’s baggage to take care of the elderly is relieved. This because they remain to be part of the employees exercising their skills in construction. Since these people will have a means of living, then social crimes will decrease. The number of homeless families will also decrease. Prevailing wage remains to be a great blessing to the community and the country’s economy in whole.