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Community Development Davis Bacon and Labor Related Acts Presentation T he Davis Bacon and the Labor Related Acts and provisions are applicable to most.

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Presentation on theme: "Community Development Davis Bacon and Labor Related Acts Presentation T he Davis Bacon and the Labor Related Acts and provisions are applicable to most."— Presentation transcript:

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2 Community Development Davis Bacon and Labor Related Acts Presentation T he 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/ or

3 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.

4 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)

5 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

6 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.”

7 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

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

9 WHAT IS A WAGE DECISION?

10 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 file oIf a change occurred, determine If there is sufficient time to notify ALL bidders If 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.

11 CERTIFIED PAYROLLS Payroll WH-347 Form Revised December, 2008 and Expires December 31, Download current pdf: instr.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

12 On-site Posting WH-1321 Revised April “ Notice to all Employees ” poster s/davis.htm s/davis.htm Applicable Federal Wage Decision posted Equal Employment Opportunity Employer Fair Labor Standards Act English and Spanish Required by City of Wilmington

13 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.

14 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)

15 City of Wilmington Contact Reference Sheet Community Development - 910/ Director/Manager – Steven L.Harrell Community Development Planner – 910/ Finance Senior Accountant – 910/ Senior Rehab Specialist – 910/ Community Development Compliance Specialist – 910/


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