Federal Requirements For Construction Contracts (Page 27 of 35) in pdf

U.S. Department of Housing

and Urban Development

Federal Labor Standards Provisions

Office of Labor Relations

Applicability

The Project or Program to which the construction work covered

classification and wage rate (including the amount designated

by this contract pertains is being assisted by the United States

for fringe benefits where appropriate), a report of the action

of America and the following Federal Labor Standards

taken shall be sent by HUD or its designee to the Administrator

Provisions are included in this Contract pursuant to the

of the Wage and Hour Division, Employment Standards

provisions applicable to such Federal assistance.

Administration, U.S. Department of Labor, Washington, D.C.

20210. The Administrator, or an authorized representative, will

A. 1. (i) Minimum Wages. All laborers and mechanics

approve, modify, or disapprove every additional classification

employed or working upon the site of the work will be paid

action within 30 days of receipt and so advise HUD or its

unconditionally and not less often than once a week, and

designee or will notify HUD or its designee within the 30-day

without subsequent deduction or rebate on any account (except

period that additional time is necessary. (Approved by the Office

such payroll deductions as are permitted by regulations issued

of Management and Budget under OMB control number 1215-

by the Secretary of Labor under the Copeland Act (29 CFR Part

0140.)

3), the full amount of wages and bona fide fringe benefits (or

cash equivalents thereof) due at time of payment computed at

rates not less than those contained in the wage determination of

employed in the classification or their representatives, and HUD

the Secretary of Labor which is attached hereto and made a

or its designee do not agree on the proposed classification and

part hereof, regardless of any contractual relationship which

wage rate (including the amount designated for fringe benefits,

may be alleged to exist between the contractor and such

where appropriate), HUD or its designee shall refer the

laborers and mechanics.

Contributions made or costs

questions, including the views of all interested parties and the

reasonably anticipated for bona fide fringe benefits under

recommendation of HUD or its designee, to the Administrator

Section l(b)(2) of the Davis-Bacon Act on behalf of laborers or

for

determination.

The

Administrator,

authorized

mechanics are considered wages paid to such laborers or

representative, will issue a determination within 30 days of

mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(iv);

receipt and so advise HUD or its designee or will notify HUD or

also, regular contributions made or costs incurred for more than

its designee within the 30-day period that additional time is

a weekly period (but not less often than quarterly) under plans,

necessary. (Approved by the Office of Management and Budget

funds, or programs, which cover the particular weekly period,

under OMB Control Number 1215-0140.)

are deemed to be constructively made or incurred during such

(d) The wage rate (including fringe benefits where appropriate)

weekly period.

determined pursuant to subparagraphs (1)(ii)(b) or (c) of this

Such laborers and mechanics shall be paid the appropriate

paragraph, shall be paid to all workers performing work in the

wage rate and fringe benefits on the wage determination for the

classification under this contract from the first day on which

classification of work actually performed, without regard to skill,

work is performed in the classification.

except as provided in 29 CFR 5.5(a)(4). Laborers or mechanics

(iii) Whenever the minimum wage rate prescribed in the

performing work in more than one classification may be

contract for a class of laborers or mechanics includes a fringe

compensated at the rate specified for each classification for the

benefit which is not expressed as an hourly rate, the contractor

time actually worked therein: Provided, That the employer’s

shall either pay the benefit as stated in the wage determination

payroll records accurately set forth the time spent in each

or shall pay another bona fide fringe benefit or an hourly cash

classification

which

work

performed.

The

wage

equivalent thereof.

determination (including any additional classification and wage

(iv) If the contractor does not make payments to a trustee or

rates conformed under 29 CFR 5.5(a)(1)(ii) and the Davis-

other third person, the contractor may consider as part of the

Bacon poster (WH-1321) shall be posted at all times by the

wages of any laborer or mechanic the amount of any costs

contractor and its subcontractors at the site of the work in a

reasonably anticipated in providing bona fide fringe benefits

prominent and accessible, place where it can be easily seen by

under a plan or program, Provided, That the Secretary of Labor

the workers.

has found, upon the written request of the contractor, that the

(ii) (a) Any class of laborers or mechanics which is not listed in

applicable standards of the Davis-Bacon Act have been met.

the wage determination and which is to be employed under the

The Secretary of Labor may require the contractor to set aside

contract shall be classified in conformance with the wage

in a separate account assets for the meeting of obligations

determination. HUD shall approve an additional classification

under the plan or program.

(Approved by the Office of

and wage rate and fringe benefits therefor only when the

Management and Budget under OMB Control Number 1215-

following criteria have been met:

0140.)

(1) The work to be performed by the classification requested is

2. Withholding. HUD or its designee shall upon its own action

not performed by a classification in the wage determination; and

or upon written request of an authorized representative of the

Department of Labor withhold or cause to be withheld from the

(2) The classification is utilized in the area by the construction

contractor under this contract or any other Federal contract with

industry; and

the same prime contractor, or any other Federally-assisted

contract subject to Davis-Bacon prevailing wage requirements,

(3) The proposed wage rate, including any bona fide fringe

which is held by the same prime contractor so much of the

benefits, bears a reasonable relationship to the wage rates

accrued payments or advances as may be considered

contained in the wage determination.

necessary

pay

laborers

and

mechanics,

including

(b) If the contractor and the laborers and mechanics to be

apprentices, trainees and helpers, employed by the contractor

employed

the

classification

(if

known),

their

or any subcontractor the full amount of wages required by the

representatives, and HUD or its designee agree on the

contract. In the event of failure to pay any laborer or mechanic,

form HUD-4010 (07/2003)

ref. Handbook 1344.1

Page 25

Previous edition is obsolete

Federal Requirements For Construction Contracts Page 27

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