Apprentice Utilization Requirements for Public Works Contracts

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Overview

Beginning July 1, 2024, most local governments in Washington State must require contractors to perform at least 15% of labor hours on public works projects using apprentices enrolled in state-approved apprenticeship programs. See RCW 39.04.300-.320.

Similar apprentice utilization requirements (AURs) have been a part of some public works contracts since 2005, but the new requirements significantly broaden the requirements and are a major change for many local governments.

These new apprentice utilization requirements apply to all “municipalities” as defined in RCW 39.04.010, except that housing authorities (which normally fall under the broad definition of “municipality”) are exempted. Below is a summary:

For simplicity’s sake, we will use the terms “public agency” and “awarding agency” interchangeably on this page to refer to all local governments subject to the apprenticeship utilization requirements.

State agencies, institutions of higher education, and the Washington Department of Transportation (WSDOT) have different requirements for apprentice utilization which are not discussed on this page.

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Project Thresholds

The apprentice utilization requirements apply to larger public works contracts and are phased in as follows:

"Estimated to cost" refers to the engineer’s estimate or project estimate developed by the public agency which is included in the invitation to bid. Estimated cost is not the bid or award amount.

The apprentice utilization statutes do not specify whether sales tax is included in the estimated cost, so MRSC’s guidance (keeping with previous guidance from the State Auditor’s Office) is to include sales tax in the estimated cost of the project when determining whether apprentice utilization requirements apply.

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Statutes and Legal Authority

Apprentice utilization requirements for public works projects can be found in RCW 39.04.310-320. The Washington State Apprenticeship Act can be found in chapter 49.04 RCW and rulemaking can be found in chapter 296-05 WAC.

The Washington State Apprenticeship & Training Council (WSATC) is responsible for developing and approving training programs as well as tracking apprentices and their utilization throughout the state. WSATC hosts the Apprentice Registration & Tracking System (ARTS) which can be used by contractors to prepare for apprentice utilization on public works projects.

The Washington Department of Labor and Industries (L&I) is responsible for negotiating wage rates—both journey and apprentice levels—tracking and reporting prevailing wages paid, and supporting contractors and public agencies in complying with prevailing wage laws and any documentation of apprentice utilization and good faith efforts as discussed later on this page. L&I approves contractors as “training agents” so contractors can use apprentices.

Definitions of each trade requiring the payment of prevailing wages is found in chapter 296-127 WAC or L&I’s Scopes of Work. Industrial insurance requirements for apprentices and trainees are found in RCW 51.12.130.

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Public Agency Responsibilities

Public agencies are responsible for:

1. Incorporating AUR elements into bid documents and contracts. This includes provisions for apprentice utilization requirements, tracking, wages, expected costs, incentives, penalties, good faith efforts, and supporting specifications.
2. Reviewing and approving Apprentice Utilization Plans submitted by bidders/contractors. Ensure bidders and contractors submit an Apprentice Utilization Plan for the project.
3. Monitoring compliance. Verify that contractors and subcontractors submit and report the intent forms, certified payrolls, and affidavits to the L&I Prevailing Wage Intent and Affidavit (PWIA) Portal before making contract payments.
4. Reviewing and adjusting the requirements. If necessary, review and approve adjustments (reductions) to the apprentice utilization percentages, including a defined "good faith efforts" process.
5. Assessing incentives/penalties. Pay incentives or assess penalties as appropriate.

These processes are discussed in more detail below.

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Incorporating AURs into Bid & Contract Documents

“Labor hours” are the total hours of workers receiving an hourly wage who are employed on the public works project. “Labor hours” includes hours performed by workers employed by the contractor and all subcontractors working on the project, but does not include hours worked by foremen, superintendents, owners, or workers who are not subject to prevailing wage requirements (unless they are performing tasks as an hourly worker).

RCW 39.04.320(4)(b) says “…there must be a specific line item in the contract specifying that apprentice (utilization) goals should be met.” Since not every public works contract uses “line items,” the common practice is to specify the requirement and list the requirement with other similar labor considerations and processes (e.g., payment of prevailing wage, subcontractor approvals, etc.).

Typically, the bidding/contracting documents specifying and support AURs are as follows:

• Advertisement/Invitation to Bid
• Instructions to Bidders/Bidder’s Checklist
  • Bidder responsibility (RCW 39.04.350(1)(e))
  • Submittal of Apprentice Utilization Plan
• Bid Form
  • Pay items listed and specified as applicable
  • Statement of compliance with signature block
• General Conditions
  • Apprentice utilization requirements (general special provisions), including incentives and penalties that will be applied if necessary
  • Bid/Line Items descriptions (if using a “bid item” APWA format contract)
  • Payment processes including required documentation
  • Prevailing wages for journey level and apprentice level
  • Subcontracting and flow-down provisions
  • Acceptable "good faith efforts" and conditions under which an adjustment will be able to be made for the project.
  • Compliance processes
• Administration Forms
  • Apprentice utilization plan
  • Good faith efforts/apprentice utilization adjustments
  • Payment application/invoice cover sheet

The Department of Enterprise Services (DES) has an Apprentice Utilization Plan Template. This template is best used for building or facility construction contracts that use a Construction Standards Institute (CSI) contract format.

Washington Department of Transportation (WSDOT) Local Programs has General Special Provisions (GSPs) to the WSDOT standard specifications and sample forms (see GSP 1-07.9(3) and WSDOT Construction Bulletin #2024-05). These could be used with a civil, bid item American Public Works Association (APWA) contract format.

Expected Costs to Use Apprentices

RCW 39.04.320(4)(b) requires public agencies to include within the bidding documents an "expected cost value" for using registered apprentices, but the statute does not say what must be included in that value.

The cost of participating in a state-approved apprenticeship program varies based on the specific program. While there are tangible expenses such as course registration fees, materials, and equipment, there are also intangible costs related to the time and resources required to support each apprentice.

Most state-approved programs have on-site oversight and apprentice-to-journeyman ratio requirements. This means that journey-level employees or supervisors (training agents) must oversee the work of apprentices. This requires careful scheduling, sequencing, and other planning considerations that may differ from those of a project without apprentice utilization requirements.

If apprentice costs are not itemized separately in a “bid item” contract, the cost per item may appear disproportionate. A “bid item” or “unit price” typically includes all-inclusive costs for materials, labor, equipment, and taxes, broken down by a single unit (for example, per foot or per item). However, when apprentices are included in the labor calculation, the labor cost will include more than just the prevailing wage, potentially skewing the “per unit” price.

Before July 1, 2024, a common practice was to include a statement in bidding documents requiring bidders to include apprentice costs with their overall labor costs, but this provided no clarity as to what cost a public agency expected. This could lead to the misconception that are no additional costs expected in using registered apprentices.

This lack of expectation around how to represent the cost in a bid may disadvantage contractors who do not routinely engage in state-approved training programs. Contractors that do not routinely use state-approved training programs often have to bid higher per-project labor costs when they bid on projects with apprentice utilization requirements because they must allocate apprentice training costs for each project bid.

Meanwhile, contractors who regularly engage state-approved training often factor these costs into their overhead or other routine business expenses which allows them to spread the cost over several projects, reducing their per-project labor cost.

A more equitable approach may be to allow all contractors and subcontractors to itemize any direct apprentice training costs as reimbursable expenses on a project-by-project basis. See more in the discussion of incentives later on this page.

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Apprentice Utilization Plans

Awarded contractors, including their subcontractors who employ hourly workers, are responsible for planning the use of registered apprentices on public works projects. As part of the process, prospective prime contractors should submit an Apprentice Utilization Plan (AUP). (The statute uses the term “apprenticeship” utilization plan, but in common practice most people use the term “apprentice” utilization plan. The two terms are interchangeable.)

An AUP can be a valuable tool for public agencies and contractors to plan projects effectively. While L&I's PWIA portal helps track progress, much of this tracking is done after the fact. Intents, AUPs, and Bidder Subcontractor Lists outline anticipated activities and allow for adjustments. AUPs can be dynamic documents that are updated throughout the project, providing real-time information as plans evolve.

The statutes provide little guidance on apprentice utilization plan requirements and submittal timing. RCW 39.04.350(3)(e) says “If the bidder has a history of receiving monetary penalties for not achieving the apprentice utilization requirements […] or is habitual in utilizing the good faith effort exception process, the bidder must submit an apprenticeship utilization plan within ten business days immediately following the notice to proceed date.”

However, RCW 39.04.310(2) defines an apprenticeship utilization plan as “a plan submitted by a prospective bidder specifically detailing verifiable efforts to meet the apprenticeship utilization requirements.” [Emphasis added.] Unlike the language in RCW 39.04.350, which requires a plan to be submitted by the successful bidder only, the use of the term “prospective” here implies that all bidders should submit apprenticeship utilization plans with their bids.

As of July 1, 2024, there is no way for a public agency to know if a bidder has a history of receiving monetary penalties or is a habitual user of good faith efforts, so we recommend that public agencies require the use of Apprenticeship Utilization Plans.

This plan should outline the specific apprentices or apprentice-able trades—that is, every trade or work category for which a state-approved training program is, or can be, developed—that will be used at each project tier and demonstrates how the required 15% of labor hours will be achieved using apprentice labor.

Timing of Apprentice Utilization Plans

As noted earlier, the statutes conflict as to whether apprentice utilization plans should be submitted by prospective bidders, or only by the successful bidder, so public agencies will have to determine the submission times for Apprentice Utilization Plans. The timing should be considered in conjunction with other bid or project submittals.

Common practice is to either:

• Require all prospective bidders to submit the plan along with their bids and Subcontractor List. The Bidder’s Subcontractor List is required for public works projects estimated to cost $1 million or more (see RCW 39.30.060) and requires the bidder to list subcontractors directly contracted to the prime for any applicable heating, ventilation, and air conditioning (HVAC), plumbing, electrical, structural steel, and rebar installation.
• Require the successful bidder to submit the plan within 10 business days after the Notice to Proceed, such as part of an initial submittal at the preconstruction meeting along with the project schedule.

Reviewing Apprentice Utilization Plans

Apprentice utilization plans must be reviewed and approved by the public agency. We recommend that each public agency develop a form that contractors can fill out and which is provided with the bidding or contract documents. The AUP should include information about subcontractors, the project’s scopes of work, trades and occupations to be used, estimated labor hours, known apprentices, and all the prime contractor’s and subcontractors’ hourly employees. For each employee, the AUP should list their trade, estimated hours, registration number, program, and total estimated labor hours.

Both WSDOT and DES require the AUP to be submitted on its own timeline and to separate dedicated staff members. However, we do not recommend this approach for most local governments unless a public agency is large enough to have separate staff and procedures to manage and oversee apprentice utilization.

Below is a summary of information to review in the AUP:

Prime Contractor

• Hourly occupations (trade)
• Start date anticipated
• Journey level hours anticipated
• Apprentice level hours anticipated
• Registration numbers (if known)

Occupations/Trades to be Subcontracted

• Work scopes

Subcontractors

• Business Name and UBI
• Responsibility check (Y/N)
• Hourly occupations (trades)
• Start date anticipated
• Journey level hours anticipated
• Apprentice hours anticipated
• Registration numbers (if known)

Hour Calculations

• Planned journey level hours
• Planned apprentice level hours
• Total anticipated project labor hours
• Apprentice utilization percentage based on anticipated hours

Subcontractors on projects must be verified as responsible and registered training agents with L&I. Prime contractors are responsible for verifying their subcontractors. If a prime contractor fails to verify subcontractors, the public agency must step in and verify them. See RCW 39.04.350 and 39.06.020.

Prime contractors are typically aware of the necessary scopes of work and subcontractor types when submitting bids. While formal subcontracts may not be in place at the time of bidding, they understand the specific trades required for the project. Even late-stage scopes, like landscaping, should be included in apprentice utilization plans (AUPs) to ensure comprehensive coverage of all trades involved.

Apprentice utilization and opportunities for apprentice utilization can change throughout a project, so it is a good practice to request updates of the AUP as subcontractors are contracted and change orders are approved. This way public agencies can anticipate what intents and affidavits should be filed, track subcontracting opportunities, and identify when registered apprentices will be hired.

Like other types of forms or documentation required on a public work project, the public agency should include instructions to the bidder giving guidance as to what should be filled out and where/how the plan will be reviewed. This gives each bidder clear direction and process and helps them be more responsive.

AUP Rejection and Resubmission

The awarding agency should reserve its rights to “reject” or “not accept” the AUP under certain conditions and specify remedy opportunities.

An AUP showing less than 15% apprentice utilization is not a basis for bid rejection or grounds for default. AUP hours are estimates, and a lower-than-expected estimate may indicate a need for increased efforts to meet the goal. It is common for bidders to include communications with subcontractors and state-approved programs in their initial AUP submissions as evidence of their intention to request adjustments or contract additional subcontractors.

If the public agency finds itself unable to accept the AUP, the current practice is to reject the submission and request a revision. Written communication should accompany any rejection notice, describing what part of the plan the agency felt was not accurate or unacceptable and what the contractor needs to do to correct and resubmit the plan.

If an AUP is submitted with inaccuracies, such as listing subcontractors who are not involved in the project or contractors who are not properly licensed, the public agency should reject the plan and require a resubmission or update. There may be valid reasons for contractor responsibility not being current or training agent status not appearing in the L&I contractor verification lookup, so the awarding agency should provide the opportunity to address these issues within a timeframe that is reasonable for the project schedule.

Examples of Apprentice Utilization Plans

For examples, see the handouts from MRSC's May 30, 2024 webinar.

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Incentives

Historically, monetary incentives have been used to encourage desired outcomes and performance on public works contracts. Common incentives include those for accelerated schedules, higher quality finishes, or community benefits like social equity and inclusion. Incentives are considered compensation for fulfilling challenging contract requirements and meeting desired goals.

RCW 39.04.320(4)(b) states that there must be monetary incentives for meeting the apprenticeship utilization goals. Monetary incentives are only provided if apprentice utilization reaches 15% of labor hours. If the utilization percentages are reduced as discussed later on this page, monetary incentives do not apply.

The common practice for paying an incentive currently is to include it as a payment item on the contract final payment.

Past Apprentice Utilization Incentive Practices

Before July 1, 2024, nominal apprentice utilization incentives were observed on a variety of different contracts and generally ranged from $1,000-5,000 in total. Some outliers were observed for very large projects ($50 million or more) and ranged from $10,000-50,000.

Incentive Practices to Consider

To effectively incorporate incentives into contracts, the contract documents must clearly specify the opportunity in a way that allows all bidders to compete fairly and provide the required deliverables to qualify for the incentives.

The best practice is to include an incentive that motivates the contractors and any subcontractors that employ hourly workers to use apprentices, including a per-employee reimbursement to cover the cost of hiring and using apprentices.

Hiring and training apprentices through state-approved programs often involves additional labor costs that many contractors do not routinely incur unless required by a project. Consider incentivizing contractors and subcontractors by reimbursing the training program costs for each registered apprentice utilized on the project to hit the 15% goal without adjusting the percentage.

If we think of an “incentive” more as direct compensation for required work, the incentivization comes in the contractor's ability to be fully compensated for real costs, not having to bury the cost in overhead or “eat” the cost to keep prices low.

There are two common ways to approach a monetary incentive:

1. Incentive as an “allowance”

According to the American Institute of Architects (AIA), an allowance is a budget provision for items whose exact cost cannot be determined at the time of bidding. Allowances are used when variations may arise after the bid and the final amount is unknown to the owner or contractor.

In a CSI-format contract, the Schedule of Values, an allowance is classified as an “expense or reimbursable” item. A common practice is for public agencies or their project engineers to establish a predetermined apprentice utilization incentive (allowance) that compensates for documented direct training costs of registered apprentices.

By setting a predetermined allowance amount, all bidders receive an equal amount and can allocate it proportionally to subcontractors contributing to apprentice utilization. This approach promotes equity in contracting and helps smaller contractors compete more effectively while offsetting business costs related to training new employees.

2. Incentive as a “bid item”

In APWA-formatted contracts, bid items can include pre-determined unit prices and estimated quantities in the engineer's estimate. For apprentice utilization, the public agency, in collaboration with the project engineer, specifies a unit price for each anticipated apprentice.

Like “incentives as allowances,” these compensable items in a contract separate, clarify, and equalize the costs of apprentice utilization, as each subcontractor can incorporate these costs into their bids accordingly.

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Penalties

In addition to requiring the use of incentives, RCW 39.04.320(4)(b) also states that there must be monetary penalties if a contractor fails to meet the 15% apprentice utilization goals and the awarding agency has not reduced the goals due to the contractor’s good faith efforts or other allowable reasons. (Some agencies may prefer the term “disincentives.”)

The penalties are paid to the awarding agency, as well as being tracked and reported by L&I to WSATC.

L&I recommends that public agencies use a “tiered” or “stepped” penalty approach where the amount is calculated based on the degree of underutilization of apprentices. This calculation considers the difference between the required 15% and the actual percentage used.

DES uses the following approach:

The penalty “assessment” will be applied to every hour of shortfall of the minimum required apprentice hours using the applicable published wage of a step-1 apprentice laborer.  Under no circumstances will the total assessment exceed five percent (5%) of the total contract sum.

Penalties are typically deducted from the final contract payment made to the contractor. If there are insufficient funds, a separate invoice is issued. The final contract price is not established until all penalties and/or liquidated damages are resolved. To ensure payment, project completion and retainage are held until the penalty invoice is settled.

When a penalty invoice is paid by the contractor and there are no funds to deduct from, the allocation of the money depends on the individual public agency's policies. Some agencies may return the funds to the project as an "underrun," while others may allocate them differently. The specific approach must align with the agency's project accounting and reporting practices.

To report any assessed penalties, the best practice is to upload a copy of the final payment to the PWIA portal, highlighting the line-item deduction or a copy of the payment received from a separate invoice. If this documentation is not provided, L&I will contact the public agency when the filed Affidavits indicate that the 15% apprentice utilization was not achieved.

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“Good Faith Efforts” and Requesting Reductions

RCW 39.04.320(2) grants public agencies the authority to adjust (reduce) apprentice utilization requirements for a specific project. There is no clear legal authority for agencies to issue any sort of blanket reduction or waiver that applies to multiple projects; if your agency is considering reducing the apprentice utilization requirements on a broader basis, you should consult your legal counsel.

Adjustments can be made at any time during the project, but L&I recommends waiting until the end of the project and only adjusting the requirements once all the information has been submitted.

The statute outlines several scenarios that may warrant adjustments, including:

• A demonstrated lack of available apprentices in the project area
• A disproportionately high ratio of material costs to labor costs
• The contractor's documented “good faith efforts” to comply with apprentice utilization requirements
• Other criteria the public agency deems appropriate, which are subject to review by the public agency’s governing body.

In rare cases, a public agency may even need to adjust the apprentice utilization requirements to zero percent—in other words, no apprentices will be/were used. This is typically due to a lack of apprentices within the project area, within specific project scopes, or within the project timeframe (for instance, the only apprentices in the area are currently involved in other projects).

In practice, the most common method for making an adjustment to apprentice utilization requirements is through a documented demonstration of good faith efforts and requests made by the contractor and subcontractors.

Documented Good Faith Efforts

There is no statutory definition of “good faith effort.” Black’s Law Dictionary defines the term as “focused efforts to produce desired or required results by deliberate action.”

Contractors and subcontractors that employ hourly workers should actively seek to utilize registered apprentices through state-approved training programs. Simply contacting one apprentice program or focusing on a limited scope of work or a single contractor's labor would likely not be considered a good faith effort. The assessment of good faith efforts should encompass all labor scopes contributing to the project.

Public works projects involve various scopes of work and trades that can be covered by apprentice programs. Common apprentices on these projects include laborers, electricians, plumbers, HVAC technicians, masons, drywall finishers, carpenters, painters, landscaping workers, safety personnel, and flaggers. To see a complete list of apprentice scopes and state-approved programs, contractors can access L&I’s Apprentice Registration and Tracking System (ARTS).

Current practice for requesting apprentice utilization adjustments is for the contractor to submit emails or letters to the public agency requesting a specific adjustment and providing justification and corroboration from multiple state-approved programs. This process and the acceptable good faith efforts should be outlined in your contract documents and specifications.

Common justifications for requesting adjustments include:

• No apprentices available within the project timeframe
• The absence of state-approved programs for specific project scopes
• Insufficient project duration to meet apprenticeship ratio requirements or classroom time
• Other logistical factors preventing registered apprentices from working on the project

We recommend that public agencies develop a form that supplements the apprentice utilization plan. This form should include acceptable good faith efforts, required documentation, submission instructions for the AUR adjustment request, and estimated processing timelines.

Typically, final approval of AUR adjustments does not occur until the end of the project when all affidavits have been filed and final apprentice utilization numbers are calculated by the PWIA system.

Once the contractor has provided acceptable documentation to support the good faith efforts justifying a reduction in apprentice utilization percentages, the awarding agency should electronically sign the document and upload it to PWIA. While the contractor can also upload the approved good faith efforts to PWIA, we recommend that the public agency handle this step to ensure the approved adjustment is accurately recorded.

Demonstrated Lack of Availability of Apprentices

Typically, contractors gather information from state-approved training programs during the bidding period to determine the availability of apprentices for specific projects. If few or no apprentices are available, the training program can provide written documentation to the contractors.

While less common, public agencies may directly contact training programs prior to issuing a bid invitation to inquire about apprentice availability and potentially publish a reduced apprentice utilization requirement. However, state programs often require specific project details, such as staffing needs, training agents, scope, trades, and timelines, before providing definitive availability information.

Disproportionately High Ratio of Material Cost to Labor Costs

While less common, another adjustment criterion considers the potential discrepancy between estimated project costs and the actual ratios of different costs.

Traditionally, labor is the most significant expense in construction projects, often accounting for 20-40% of the project budget. However, this can vary, especially for projects involving scopes such as alternative energy systems, technology upgrades, or specialty items where materials and equipment are highly customized, not available domestically, or otherwise more costly.

To evaluate if a project has disproportionately high material costs, it is helpful to analyze the engineer's estimate, which should ideally break down costs by labor, materials, equipment, and taxes. However, engineers that prepare estimates for purposes of bidding often use indexes, historical costs, and city multipliers, not direct costs. Direct cost information typically comes from contractors and subcontractors as part of the award or preconstruction process. Public agencies would typically need to request the engineers to estimate the same way contractors bid to ascertain this information.

There is no industry-standard definition for a "disproportionately high" ratio. MRSC has observed agencies using thresholds as high as 70% or as low as 50% in product and materials costs. We recommend consulting with a professional estimator experienced in estimating similar public works projects to determine an appropriate threshold of labor or materials costs and then confirming the estimated disproportionate labor cost with the awarded bidder.

Other Criteria the Public Agency Deems Appropriate

Some public agencies might use additional criteria to adjust apprentice utilization requirements. These criteria must be reviewed and approved by the public agency’s legislative body and should be treated similarly to other contracting policies, procedures, and signature authority.

Examples of “other criteria” include, but are not necessarily limited to:

1. Worker Displacement. If hiring an apprentice would necessitate laying off existing employees, the required apprentice utilization percentage may be adjusted proportionally for that contractor or subcontractor. Documentation should include the length of employment of the would-be laid-off workers, program requirements, and other relevant information.
2. Unbalanced Program Costs. If the cost of training through a state-approved program is 50% or more of a subcontractor's entire bid, the public agency could potentially consider the program cost to be considered “unbalanced” for that project. An adjustment to the required apprentice utilization percentage might be lowered proportionally for that subcontractor. Documentation should include program information, costs, and the subcontractor's bid.
3. Change Order Work. If an approved change order introduces new, previously unanticipated work and does not include sufficient scope or time to maintain apprentice ratios, it may result in a disproportionate distribution of total project hours and a potential shortfall in apprentice utilization. Documentation should typically include the change order itself and an updated Apprentice Utilization Plan (AUP) with notes explaining how the unplanned hours have impacted the apprentice utilization percentage.
4. Warranty/Specialty Work. If the contract requires specialized equipment or systems that can only be serviced by certified, journey-level installers or technicians from the original equipment manufacturer (OEM), this may limit the number of apprentice-able occupations involved. In such cases, the prime contractor and the OEM can collaborate to provide justification based on the planned hours for the specific scope and jointly submit a request to adjust apprentice utilization percentages to accommodate the specialty work.
5. Federal Funding. Federal funding often justifies adjustments or waivers of state apprentice utilization requirements on public works projects as described later on this page.

To assess apprentice opportunities for a specific project, you will need the prime contractor's (bidder's) list of all scopes and trades required. Once this information is available, inquiries can be made about the availability of apprentices and training programs in the project area.

The specific apprentice opportunities can vary depending on how the prime contractor staffs the project, what work the contractor self-performs, and how work is packaged for subcontracting. Contractors are the primary point of contact with state-approved apprentice programs.

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Tracking Apprentice Utilization

The official record of apprentice utilization on a project is maintained through L&I's Prevailing Wage Intent and Affidavit System (PWIA). After awarding a public works project, the awarding agency should establish the project in the L&I portal, indicating that apprentice utilization is required and confirming project details such as the contractor and award amount.

After the contract is awarded, the contractor and subcontractors must file the intent to pay prevailing wages, which includes the list of worker classifications to be used and which must be approved by the L&I Industrial Statistician before the contractor receives the first payment.

At least once a month for the duration of the project, the contractor and subcontractors must file certified weekly payroll reports detailing the data for specific workers, prevailing wages paid, and hours worked. If the apprentice utilization percentage is less than 15% of labor hours after certified payrolls are entered, a notification should be sent through PWIA to all contractors and subcontractors requesting the necessary paperwork.

Public agencies should use the PWIA portal to ensure all required documentation is complete and accounted for before making any payments on a public works project.

After the work has been completed, the contractor and subcontractors must file the affidavit of wages paid which confirms the work done, the workers and worker classifications, total hours worked, and final wages paid.

L&I then uses the filed affidavits (not the certified payroll reports) to calculate the percent of labor hours performed by apprentices.

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Closing a Project with Apprentice Utilization Requirements

When closing a public works project with apprentice utilization requirements, the public agency must ensure that the final contract price accurately reflects any penalties or incentives.

The final project documentation should include all apprentice utilization plans, intents, affidavits, certified payrolls, any adjustments and evidence of any incentive payment or penalty assessment. These records must be properly documented in the PWIA system and the project file. L&I's Notice of Completion (NOC) cannot be finalized without this information.

If the apprentice utilization falls below 15% after all affidavits are accounted for and there is no evidence of agency-approved good faith efforts or other approved adjustments in the PWIA system, L&I's apprentice section will contact the agency and contractor to ensure that the information is recorded correctly so that the public agency can assess the appropriate penalty.

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Federally Funded Projects

Federal training requirements and state apprentice utilization requirements differ. Projects with mixed funding sources may require both. In some cases, federal training requirements may supersede local apprentice utilization requirements, or federal funding may prohibit the use of local contracting requirements like apprentice utilization.

The Federal On-the-Job Training (OJT) program, outlined in 23 CFR Part 230, Subpart A, is often applicable to federal-aid highway construction contracts and subcontracts. It requires the inclusion of federal trainee or OJT special provisions in the contract.

The federal OJT program aims to provide opportunities for women, minorities, and disadvantaged individuals to enter journey-level positions and to bolster a competent construction workforce. It helps to ensure the inclusion of historically underrepresented groups in highway construction projects.

It is essential to consult with your grant administrator to confirm the specific contracting requirements and the applicability of state contracting requirements under any federal grant.

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MRSC Training Materials

MRSC has conducted several webinars regarding apprentice utilization requirements; the webinar recordings and materials are available below.