Rhode Island § 37-13-16 - Labor and Payment of Debts by Contractors

§ 37-13-16. Termination of work on failure to pay agreed wages — Completion of work.

(a) Every public works contract within the scope of this chapter shall contain the further provision that in the event it is found by the director of labor and training that any employee employed by the contractor or any subcontractor directly on the site of the work covered by the contract has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid as aforesaid, the awarding party may, by written notice to the contractor or subcontractor, terminate his or her right as the case may be, to proceed with the work, or the part of the work as to which there has been a failure to pay the required wages, and shall prosecute the work to completion by contract or otherwise, and the contractor and his or her sureties shall be liable to the awarding party for any excess costs occasioned the awarding authority thereby.

(b) Every school transportation service contract within the scope of this chapter shall contain the further provision that in the event it is found by the director of labor and training that any employee employed by the provider to provide services within the area covered by the contract has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid as aforesaid, the awarding party may, by written notice to the vendor, terminate the vendor’s right as the case may be, to proceed with the contract.