Community Development Davis Bacon and Labor Related Acts

PresentationThe Davis Bacon and the Labor Related Acts and provisions are

applicable to most City Administered HOME Partnership Grant and Community Development Block Grant Funded Projects public

facility and large housing construction projects by the United States Department of Housing and Urban Development.

The presentation does not take the place of any required meeting regarding Davis Bacon and Related Acts. If you have any questions please contact: Teresa V. Campo, CZO,

Community Development Compliance Specialist

at 910/341-3236 or teresa.campo@wilmingtonnc.gov

What Projects are Subject Davis Bacon?

• All HOME Partnership Grant Public Facility Projects,

• All HOME Partnership Grant Housing Projects greater than 11 units,

• All Community Development Block Grant Public Facility Projects,

• All Community Development Housing Grant Projects greater than $2,000 and with more than 7 Housing Units.

Who is Subject to Davis Bacon?

• Applies to all Laborers and Mechanics Laborers and Mechanics are Individuals whose duties are manual or physical in nature.

• Includes apprentices, trainees• Does NOT apply to Administration or Support Positions:

– i.e. Timekeepers, inspectors, architects, and engineers

– Bona fide executive, administrative, or professional employees as defined by the Federal Labor Standards Act (FLSA)

What is Davis Bacon?• Davis Bacon is a federal regulation ensuring that prevailing wages will be

paid to laborers and mechanics (employees) when supplying labor to federal funded projects.

• This includes overtime and ensures that promised fringe benefits are granted to the employee. (Fringe benefits are only included if they have been negotiated as part of hire and are not required otherwise under Davis Bacon.

• “Prevailing wage” is made up of two interchangeable components– Basic Hourly Rate (BHR) and Fringe Benefit (FB)

• Wage Determination obligation satisfied by:– Paying the BHR and FBs in cash– Contributing payment to a bona fide plan– Any combination of the two

Davis Bacon and Project Bids

All applicable projects must include the following statement in the bid solicitation:

“Project is subject to Davis Bacon Act, Federal Labor Standards Act, HUD Form 4010, Contract Work Hours

and Safety Standards Act, The Copeland Act, and Equal Employment Opportunities.”

Davis Bacon and Project Bids

All applicable bid documents MUST include:

• Statement: “Project is subject to Davis Bacon Act, Federal Labor Standards HUD Form 4010, Contract Work Hours and Safety Standards Act, The Copeland Act, and Equal Employment Opportunities.”

• Copy of Form HUD 4010 • Applicable Davis Bacon Wage Decision

CAUTION!No Choice Limiting Actions can be taken prior to the Environmental being

completed.

What does choice limiting mean to the bid documents?

NO contracts (commitment of funds) can be executed prior to the environmental release.

Additionally, contracts must contain The Labor Standards Clauses, Davis-Bacon Wage Decision(s) and verification of contractor eligibility to

determine that the contractor has not been debarred. http://epls/arnet.gov

Principal contractor (prime or general) is responsible for Davis-Bacon compliance for all employer’s (the contractor, subcontractors, and any

lower-tier subcontractors).

http://www.wdol.govhttp://www.wdol.gov

WHAT IS A WAGE DECISION?WHAT IS A WAGE DECISION?

WHAT IS A WAGE DECISION?WHAT IS A WAGE DECISION?

The WAGE DECISION that applies to your project is determined by the “LOCK-IN” DATE.

The WAGE DECISION in the Competitive Bidding Process:

The bid opening date “locks-in” the wage decision provided that the contract is awarded within 90 days. (REMEMBER NO AWARD PRIOR TO ENVIRONMENTAL RELEASE.)

NOTE: 10 days before the bid opening date, Check to see if the decision is current

If no change, document the fileo If a change occurred, determine

If there is sufficient time to notify ALL biddersIf the modification applies to your project activities

If so, notify ALL bidders of the revised wage decision and document files

If the contract is not awarded within 90 days of the bid opening, then the wage decision is locked in by the contract award date.

CERTIFIED PAYROLLS • Payroll WH-347 Form Revised December,

2008 and Expires December 31, 2011.

• Download current pdf: http://www.dol.gov/esa/whd/forms/wh347instr.htm

• Identify payrolls numbered consecutively as #1 , #2, etc. and the last week of work should be marked as “Final”

• Payrolls are to be reported as payment is made, and the certified payrolls may be submitted to the Community Development Compliance Specialist weekly or monthly, and no later than quarterly.

• Original Signature on Payroll Certification

On-site Posting

• WH-1321 Revised April 2009. “Notice to all Employees” poster http://www.dol.gov/esa/whd/regs/compliance/posters/davis.htm

• Applicable Federal Wage Decision posted• Equal Employment Opportunity Employer• Fair Labor Standards Act

http://www.dol.gov/osbp/sbrefa/poster/matrix.htm• English and Spanish Required by City of

Wilmington

Compliance Issues• On Site Inspections by Staff regarding the posting of required

notifications (posters).

• Employee Interviews by Community Development Staff will be conducted periodically.

• Form HUD-11 – Confidential Interviews collecting the following data: I. Place and date of interview

II. Name and address of employer / employee

III. Employment status and classification

IV. Alleged violations

• Completed Form HUD-11 will be reviewed by the City of Wilmington Compliance Specialist for comparison with the certified payrolls.

• No Draw Downs of Funds will be permitted without certified payroll compliance.

Making Davis Bacon Work

The City of Wilmington will provide you a copy of the ‘Making Davis-Bacon Work’ A Contractor’s Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects.

Or you can obtain a copy directly from HUD by calling (800) 767-7468

City of Wilmington

Contact Reference Sheet • Community Development - 910/341-7836• Director/Manager – Steven L.Harrell• Community Development Planner – 910/341-5809

suzanne.rogers@wilmingtonnc.gov• Finance Senior Accountant – 910/341-5825

alice.johnson@wilmingtonnc.gov• Senior Rehab Specialist – 910/341-7835

gene.langley@wilmingtonnc.gov• Community Development Compliance Specialist –

910/341-3236teresa.campo@wilmingtonnc.gov