Federal Requirements For Construction Contracts Page 29
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35a contractor is performing construction on a project in a locality
6. Subcontracts. The contractor or subcontractor will insert in
other than that in which its program is registered, the ratios and
any subcontracts the clauses contained in subparagraphs 1
wage rates (expressed in percentages of the journeyman’s
through 11 of this paragraph A and such other clauses as HUD
hourly rate) specified in the contractor’s or subcontractor’s
or its designee may by appropriate instructions require, and a
copy of the applicable prevailing wage decision, and also a
registered program shall be observed. Every apprentice must
clause requiring the subcontractors to include these clauses in
be paid at not less than the rate specified in the registered
any lower tier subcontracts. The prime contractor shall be
program for the apprentice’s level of progress, expressed as a
responsible for the compliance by any subcontractor or lower
percentage of the journeymen hourly rate specified in the
tier subcontractor with all the contract clauses in this paragraph.
applicable wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the apprenticeship
7. Contract termination; debarment. A breach of the contract
program. If the apprenticeship program does not specify fringe
clauses in 29 CFR 5.5 may be grounds for termination of the
benefits, apprentices must be paid the full amount of fringe
contract and for debarment as a contractor and a subcontractor
benefits listed on the wage determination for the applicable
as provided in 29 CFR 5.12.
classification. If the Administrator determines that a different
8.
Compliance
with
Davis-Bacon
and
Related
Act
practice prevails for the applicable apprentice classification,
Requirements.
fringes shall be paid in accordance with that determination. In
All rulings and interpretations of the Davis-Bacon and Related
the event the Office of Apprenticeship Training, Employer and
Acts contained in 29 CFR Parts 1, 3, and 5 are herein
Labor Services, or a State Apprenticeship Agency recognized
incorporated by reference in this contract
by the Office, withdraws approval of an apprenticeship program,
9. Disputes concerning labor standards. Disputes arising out
the contractor will no longer be permitted to utilize apprentices
of the labor standards provisions of this contract shall not be
at less than the applicable predetermined rate for the work
subject to the general disputes clause of this contract. Such
performed until an acceptable program is approved.
disputes shall be resolved in accordance with the procedures of
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will
the Department of Labor set forth in 29 CFR Parts 5, 6, and 7.
not be permitted to work at less than the predetermined rate for
Disputes within the meaning of this clause include disputes
the work performed unless they are employed pursuant to and
between the contractor (or any of its subcontractors) and HUD
individually registered in a program which has received prior
or its designee, the U.S. Department of Labor, or the employees
approval, evidenced by formal certification by the U.S.
or their representatives.
Department of Labor, Employment and Training Administration.
10. (i) Certification of Eligibility. By entering into this contract
The ratio of trainees to journeymen on the job site shall not be
the contractor certifies that neither it (nor he or she) nor any
greater than permitted under the plan approved by the
person or firm who has an interest in the contractor’s firm is a
Employment and Training Administration. Every trainee must be
person or firm ineligible to be awarded Government contracts by
paid at not less than the rate specified in the approved program
virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR
for the trainee’s level of progress, expressed as a percentage of
5.12(a)(1) or to be awarded HUD contracts or participate in
the journeyman hourly rate specified in the applicable wage
HUD programs pursuant to 24 CFR Part 24.
determination. Trainees shall be paid fringe benefits in
\
accordance with the provisions of the trainee program. If the
(ii) No part of this contract shall be subcontracted to any person
trainee program does not mention fringe benefits, trainees shall
or firm ineligible for award of a Government contract by virtue of
be paid the full amount of fringe benefits listed on the wage
Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to
determination unless the Administrator of the Wage and Hour
be awarded HUD contracts or participate in HUD programs
Division determines that there is an apprenticeship program
pursuant to 24 CFR Part 24.
associated with the corresponding journeyman wage rate on the
(iii) The penalty for making false statements is prescribed in the
wage determination which provides for less than full fringe
U.S. Criminal Code, 18 U.S.C. 1001. Additionally, U.S. Criminal
benefits for apprentices. Any employee listed on the payroll at a
Code, Section 1 01 0, Title 18, U.S.C., “Federal Housing
trainee rate who is not registered and participating in a training
Administration transactions”, provides in part: “Whoever, for the
plan approved by the Employment and Training Administration
purpose of . . . influencing in any way the action of such
shall be paid not less than the applicable wage rate on the
Administration..... makes, utters or publishes any statement
wage determination for the work actually performed. In addition,
knowing the same to be false..... shall be fined not more than
any trainee performing work on the job site in excess of the ratio
$5,000 or imprisoned not more than two years, or both.”
permitted under the registered program shall be paid not less
11. Complaints, Proceedings, or Testimony by Employees.
than the applicable wage rate on the wage determination for the
No laborer or mechanic to whom the wage, salary, or other
work actually performed. In the event the Employment and
labor standards provisions of this Contract are applicable shall
Training Administration withdraws approval of a training
be discharged or in any other manner discriminated against by
program, the contractor will no longer be permitted to utilize
the Contractor or any subcontractor because such employee
trainees at less than the applicable predetermined rate for the
has filed any complaint or instituted or caused to be instituted
work performed until an acceptable program is approved.
any proceeding or has testified or is about to testify in any
(iii) Equal employment opportunity. The utilization of
proceeding under or relating to the labor standards applicable
apprentices, trainees and journeymen under 29 CFR Part 5
under this Contract to his employer.
shall be in conformity with the equal employment opportunity
requirements of Executive Order 11246, as amended, and 29
B. Contract Work Hours and Safety Standards Act. The
CFR Part 30.
provisions of this paragraph B are applicable only where the
5. Compliance with Copeland Act requirements. The
amount of the prime contract exceeds $100,000. As used in this
contractor shall comply with the requirements of 29 CFR Part 3
paragraph, the terms “laborers” and “mechanics” include
which are incorporated by reference in this contract
watchmen and guards.
form HUD-4010 (07/2003)
ref. Handbook 1344.1
Page 27
Previous edition is obsolete
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