2023 DAVIS-BACON GRANTEE HANDBOOK - Johnson County, Kansas Community Development Block Grant: Davis-Bacon Compliance - Johnson County Kansas
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2023 DAVIS-BACON GRANTEE
HANDBOOK
Johnson County, Kansas
Community Development Block Grant: Davis-Bacon Compliance
Johnson County Community Development
https://www.jocogov.org/department/community-development
111 South Cherry Street, Suite 2000, Olathe, Kansas 66061
Phone: (913) 715-2200 Fax: (913) 715-2222
cdbg@jocogov.org
https://www.dol.gov/whd/govcontracts/dbra.htm
Table of Contents A. Labor Standards Officer…………………………………………………………………………………………………………….…………2 B. The Bid………………………………………………………….……………………………………………………………………….……………3 C. Bid Opening, Contract and Award………………………………………………………………………….……………….……………4 D. Pre-Construction Conference………………………………………………………………………………………..…….………………5 E. The Construction Site………………………………………………………………………………………………………….……………….6 F. During Construction………………………………………………………………….………………………………………...………………7 G. Completion of Construction…………………………………………………………………………………………………………………9 H. Monitoring Audit…………………………………………………………………………………………………………………………………9 I. Labor Standards and Enforcement Letters………………………………………………………………………….…..…….……..9 Appendices…………………………………………………………………………………………………………………………..……………….13 Appendix A: Required Contractor Certifications Appendix B: Apprentice Registration and Fringe Example Appendix C: Record of Employee Review Form Appendix D: Community Development Labor Forms 1-8 Johnson County CDBG Program Davis-Bacon Guide 2023 1
Davis Bacon & Related Acts
Summary of Responsibilities
The subrecipient of CDBG funds for a HUD assisted construction project is responsible for contractor
compliance with federal labor standards and Davis-Bacon wage enforcement.
Please Review: Making Davis-Bacon Work, A Practical Guide for States, Indian Tribes and Local
Agencies
Forms and Other Documents
All documents and required forms are included in this handbook. The person designated as the grant
contact will also be emailed all forms for 2023. Please delete all previous copies.
A. Labor Standards Officer
Complete Appendix D: Labor Form No. 1 NOTICE OF LABOR STANDARDS
OFFICER
Appoint a project contact person who will be responsible for oversight and enforcement of federal labor
standards and payment of Davis-Bacon wages. This individual will be the contact person for all
communication between the subrecipient and the Community Development office concerning the grant.
Form No. 1 is in excel format. You can complete this form and email the completed form to one of the
Community Development contacts below or email cdbg@jocogov.org.
Community Development Contact Numbers for Labor Standards Officer
Leslie Davis, Community Development Coordinator
Phone: 913-715-2245
Fax: 913-715-2222
Email: Leslie.Davis@jocogov.org
Hilary Rose-Holland, Assistant Grants Manager
Phone: 913-715-2238
Fax: 913-715-2222
Email: Hilary.Rose-Holland@jocogov.org
Labor Standards: This section summarizes the key requirements and regulations of applicable labor laws
with which subrecipients must comply. Any construction contract is subject to the applicable labor
standards in three key federal statutes: the Davis-Bacon Act, the Contract Work Hours and Safety
Standards Act, and the Copeland Act, “Anti-Kickback” Act”. Subrecipients are responsible for ensuring
that contractors comply with labor standards.
Only Construction Contracts under $2,000 and Residential Rehabilitation in structures with less than
eight (8) units are exempted from these labor standards.
Johnson County CDBG Program Davis-Bacon Guide 2023 2Davis-Bacon Act (DBA): Requires the payment of prevailing wage rates (which are determined by the
U.S. Department of Labor) to all laborers and mechanics on Federal government projects in excess of
$2,000.
The Contract Work Hours and Safety Standards Act (CWHSSA) requires time and one-half pay for
overtime (O/T) hours.
The Copeland Act (Anti-Kickback Act) makes it a crime for anyone to require any laborer or mechanic
(employed on a Federal for Federally-assisted project) to kickback any part of their wages. It requires
that workers be paid at least once a week, and without any deductions or rebates except permissible
deductions, e.g., tax withholdings, deductions having written worker authorization, and court ordered
deductions. The Copeland Act also required every employer (contractors and subcontractors) to submit
weekly certified payroll reports (CPRs) to the contracting local government.
B. Bidding
1. It is the responsibility of the sub-recipient to request the Davis-Bacon Wage Rate Decision from the
Community Development Office at least 5 days prior to advertising for bids. The Wage Decision in effect
at the time of your request will be emailed to you. Contact cdbg@jocogov.org
2. Formal advertising should allow sufficient time for bid solicitation. In advertising for bidders, the
subrecipient must include a notice that Davis-Bacon wage rates apply to the project. The subrecipient
should advertise at least ten (10) days and not more than 30 days prior to the date set for the opening
of bids. The invitation to bid must be publicly advertised. Include in bid package:
a. Wage Rate Decision;
b. Contractor Certifications for a HUD Assisted Construction Project
3. Advertise for bids as required by the Procurement Section of 24 CFR Part 85, 2 CFR Part 200, and the
subrecipient’s adopted procurement procedures.
4. IMPORTANT: In addition to your other advertising, you are required to solicit bids from minority and
women-owned businesses by advertising in at least one minority newspaper.
The Kansas City Call
1715 East 18th 2730 N. 13th St.
Kansas City, Missouri 64108 & Kansas City, KS 66104
816-842-3804 913-371-5400
The Kansas State Globe
615 E. 29th Street
Kansas City, Missouri 64109
816-531-5253
Dos Mundos
1701 S. 55th St.
Kansas City, KS 66106
816-221-4747
http://dosmundos.com
Johnson County CDBG Program Davis-Bacon Guide 2023 3It is also recommended that subrecipients mail or email a copy of the invitation to bid to the following:
Minority Contractors Association of Greater Kansas City
3200 Wayne Avenue, #202
Kansas City, Missouri 64109
816-924-4441
minoritycontractors@mca-gkc.org
Kansas Minority-Owned & Women-Owned Business Directory
Subrecipients may also wish to specifically solicit bids directly from minority and women contractors.
The Kansas Department of Commerce & Housing publishes a directory. Website address:
http://mwbds.kansascommerce.com/
Contractor Certifications for a HUD Assisted Construction Project
The contractor certifications provided in Appendix A in this guide must be included in the bid
package and in the contract.
C. Bid Opening, Contract and Award
IMPORTANT: Wage rates change! It is important that you request a wage rate decision at least 5 days
prior to bid opening to determine if there have been any modifications or replacements of the wage
rates previously issued. If it has been replaced or modified, they subrecipient must notify the
prospective bidders of the changes so that they can modify their bids.
1. Prior to bid opening: Request a Wage Rate Decision at least 5 days prior to bid opening and awarding
the contract. The Wage Rate Decision may have changed from the Wage Rate Decision included in the
bid documents.
2. Contractor Eligibility: Prior to contractor selection, contact the Community Development office to
verify that the contractor is an eligible contractor. IMPORTANT: Prior to contractor selection, provide
Community Development with the following documentation:
a. Appendix D: Labor Form No. 2 OUTREACH TO & RESPONSE FROM MINORITY
& WOMEN-OWNED BUISNESSES; AND
b. Appendix D: Labor Form No. 3 VERIFICATION OF CONTRACTOR & SUB
CONTRACTORS ELIGIBILITY
3. Contract: IMPORTANT! The Wage Rate Determination applicable to your project is the Wage Rate
Decision in effect on the date of contract award. A clause to this effect should be included in the
contract. Include in the contract:
a. Wage Rate Decision in effect on the date of award; AND
b. Contractor Certifications for a HUD Assisted Construction Project MUST be included in the
contract. IMPORTANT: The Contractor must sign the certifications. Please forward a copy to
Community Development once it is signed. You may scan and email them to: cdbg@jocogov.org
Johnson County CDBG Program Davis-Bacon Guide 2023 44. Award: Once the contract has been awarded, provide Community Development with Appendix D:
Labor Form No. 4 NOTICE OF CONTRACT AWARD documentation. Please be sure to
submit this form in a timely manner. This information is used to complete required reports to HUD and
the Department of Labor.
D. Pre-Construction Conference
HUD has stated that pre-construction conferences for labor standards purposes are optional. HUD no
longer requires that Community Development staff be at the pre-construction conference, however, if
you would like staff present please contact Community Development with the date and time of the
conference. During the pre-construction conference:
1. Ensure that the contractor is familiar with Federal Labor Standards and Davis-Bacon and Related Acts
requirements. Most contractors will be. You must communicate:
a. that underpaid workers must be paid proper wages through restitution;
b. that workers are paid time and one-half for overtime;
c. that workers are paid once per week, without any deductions other than those allowed by
law;
d. that weekly certified payrolls must be submitted;
e. that if apprentices are employed, proper certification from the U.S. Department of Labor is
required;
f. that only trades indicated in the Wage Rate Decision can be utilized on the project. Additional
classifications will be needed for any non-listed trades;
g. that liquidated damages of $10.00 per day may be assessed for each violation; and
h. if apprentices are to be used, a copy of the wage ratio sheet and apprentice registration with
approved program is to be received by the subrecipient prior to the first day on the job. Example
provided in Appendix B at the end of this guide.
Provide the contractor with a copy of: Making Davis-Bacon Work, A Contractor’s Guide to Prevailing
Wage Requirements for Federally-Assisted Construction Projects.
https://www.hudexchange.info/resource/2541/making-davis-bacon-work-contractors-guide-prevailing-
wage-requirements/
2. IMPORTANT: Ensure that the contractor is aware of their responsibilities under Section 3.
What is Section 3?
Under Section 3 of the Housing and Urban Development Act of 1968, wherever HUD financial assistance
is given for housing or community development, the greatest extent feasible, economic opportunities
will be given to residents and businesses in that area. Section 3 is the legal basis for providing jobs for
residents and awarding contracts to businesses in areas receiving certain types of HUD financial
assistance. It is a means by which HUD fosters local economic development, neighborhood economic
improvement, and individual self-sufficiency.
Johnson County CDBG Program Davis-Bacon Guide 2023 5Who are Section 3 Residents? A resident of public housing and low-income and very low-income persons who live in the area in which a HUD-assisted project is located. Low-income persons mean families (including single persons) whose incomes do not exceed 80% of the medial income for the area. Very low-income persons mean low- income families (including single persons) whose incomes do not exceed 50% of the median family income for the area. What is a Section 3 Business? A business that is owned by Section 3 residents or employs Section 3 residents in full-time positions or subcontracts with businesses which provide economic opportunities to low-income persons. How can a contractor find Section 3 residents to work for them? A contractor can recruit in the neighborhood to tell residents about available training and job opportunities. Distributing flyers, posting signs, placing ads, and contacting resident organizations and local employment agencies to find potential workers are effective ways of getting jobs and people together. How can a contractor find Section 3 businesses to work for them? Contacting business assistance agencies, minority contractors associations and community organizations to inform them of contracting opportunities and requesting their assistance in identifying Section 3 businesses. Advertising contracting opportunities by posting notices, through trade association papers and newsletters, developing a list of eligible Section 3 business concerns. Since CDBG funds are intended to benefit low-income residents, these residents should benefit not only as a result of the completion of a project but also in the work of completing the project. Every reasonable effort must be made to involve low-income residents in the work of the project. A report on Contractor Compliance with Section 3 is required at the completion of the project. E. The Construction Site You must ensure that all required labor law notices and the wage rate decision are posted at the construction site! 1. Ensure that the Project Wage Rate Sheet is posted on the job site! To simplify the posting of the entire wage rate decision at the construction site, HUD has developed a single page Project Wage Rate Sheet. This sheet can be used in lieu of posting the entire wage rate decision. The sheet should be completed only after the wage rate decision is “locked-in” by contract award. 2. Ensure that Federal and State Labor Law Posters are posted on the job site! If one is needed, below is a web address where the posters may be ordered. These are only examples and interested parties can purchase from wherever they wish. https://www.dol.gov/whd/resources/posters.htm https://www.laborposters.org/kansas.htm Johnson County CDBG Program Davis-Bacon Guide 2023 6
3. Subrecipients will ensure that the posters are posted on the job site. Please provide Community Development with documentation of the posting through Labor Form No. 5 and photos. Appendix D: Labor Form No.5 POSTING OF FEDERAL AND STATE LABOR POSTERS https://www.dol.gov/whd/resources/posters.htm https://www.laborposters.org/kansas.htm These are only examples and interested parties can purchase from wherever they wish. F. During Construction You will be responsible for collecting Certified Payrolls and performing on-site Interviews. In the past HUD required that on-site interviews be conducted with a “representative sampling” of all laborer and mechanics on the project. HUD now is more interested in using on-site interviews as a proactive enforcement tool than as a mean to meet a “representative sampling” quota. HUD encourages the Labor Standards Officer to focus interviews to groups of workers where violations are suspected or alleged. Random interviews should still be conducted if only to “capture observations of the work being performed and to get the workers’ views on the hours they work, the type of work they perform and the wages they receive.” At the recommendation of HUD, certified weekly payrolls must be submitted to Johnson County Community Development weekly. This was a recommendation from a HUD monitoring visit. The contractor and sub-contractors are required to submit certified payroll sheets to you on a weekly basis. These should be submitted within seven (7) working days of end date on the payroll form. Don’t tolerate late submissions from the contractor or sub-contractors. Though the contractors and sub- contractors are not required to use the Department of Labor Payroll Form WH-347, the report must contain all of the information that is required on the WH-347. Incomplete requests will be returned. The payroll must be signed with an original signature. The payroll must be signed by a principal of the firm or by an authorized agent or accompanied by an authorization for someone else to sign payrolls from the principal of the company. 1. Conduct spot-check on-site interviews with at least a few laborers and mechanics. Information gathered during the interviews should be recorded and submitted on HUD Form 11, Record of Employee Interview Appendix C to Community Development. A fillable PDF Form 11 is available at the following website: https://www.hud.gov/sites/documents/11.PDF 2. Review contractor and subcontractor certified payroll reports to ensure that all laborers and mechanics are being paid no less than the wage rates in the Contract Wage Rate Decision. 3. If apprentices are to be used, a copy of the wage ratio sheet and apprentice registration with approved program is to be received by the sub-recipient prior to the first day on the job. Johnson County CDBG Program Davis-Bacon Guide 2023 7
What are Fringe Benefits?
Contributions irrevocably made to a trustee or third party pursuant to a bona fide fringe benefit fund
plan or program. The rate of costs incurred in providing bona fide fringe benefits pursuant to an
enforceable commitment to carry out a financially responsible plan or program, which was
communicated to the employees in writing.
Examples Include: Life insurance, health insurance, pension, vacation, holidays, sick leave, and other
“bona fide” fringe benefits. However, payments required by federal, state or local law are not fringe
benefit contributions. Such payments required to fund Social Security, unemployment compensation
and workers’ compensation programs, as required by law, do not count as fringe benefits.
4. Investigate any violations or complaints of underpayment.
5. IMPORTANT: Submit copies of interviews and certified payroll reports with your Reimbursement
Request for CDBG funds. No funds will be released unless Davis-Bacon required items are reviewed and
found to be in compliance by Community Development.
6. Apprentices and Trainees
The only workers who can be paid less than the wage rate on the wage rate decision for their work
classification are “apprentices” and “trainees” registered in approved apprenticeship or training
programs, including Step-Up apprenticeship programs designed for Davis-Bacon construction work.
Approved programs are those which have been registered with the Department of Labor (DOL), Bureau
of Apprenticeship and Training (BAT) or with a BAT-recognized State Apprenticeship Agency (SAC).
Apprentices and trainees are paid wage rates in accordance with the wage schedule in the approved
program.
Most often, the apprentice or trainee wage rate is expressed as a series of percentages tied to the
amount of time spent in the program. For example, 0-6 months: 65%; 6 months to 1 year: 70%; etc. The
percentage is applied to the journeyman’s wage rate. On Davis-Bacon projects, the percentage must be
applied to the journeyman’s wage rate on the applicable wage decision for that craft.
1. Probationary Apprentice: Can be paid as an apprentice (less than the rate on the wage
decision) if the BAT or SAC has certified that the person is eligible for probationary employment
as an apprentice.
2. Pre-Apprentice: Someone who is not registered in a program and that hasn’t been BAT or SAC
certified for probationary apprenticeship is not considered to be an “apprentice” and must be
paid the full journeyman’s rate on the wage decision for the classification of work they perform.
3. Ratio of Apprentices and Trainees to Journeymen: The maximum number of apprentices or
trainees that you can use on the job site cannot be more than the ratio of apprentices or
trainees to journeymen allowed in the approved program.
To complete a payroll report for apprentices, the first payroll on which any apprentice or trainee
appears must be accompanied by a copy of that apprentice’s or trainee’s registration in an approved
program. A copy of the portions of the approved program pertaining to the wage rates and ratios shall
also accompany the first certified payroll on which the first apprentice or trainee appears.
Johnson County CDBG Program Davis-Bacon Guide 2023 8Typical errors and required corrections for payrolls including apprentices and trainees:
1. Registration, approved program ratio, wage schedule is not submitted with first payroll.
2. Ratio of apprentices or trainees to journeymen is greater than the ratio on the approved
program, the employer will be asked to page restitution to any excess apprentices or trainees.
3. Apprentices not in a registered approved program must be paid the journeyman’s wage rate.
4. The apprenticeship agreement does not constitute a certification under Title 29 CFR Part 5 for
the employment of apprentices on federally financed or assisted construction projects.
For Kansas Apprenticeship Information: https://ksapprenticeship.org/
G. Construction Completion
1. Complete Appendix D: Labor Form No. 6 SECTION 3 CONTRACTOR COMPLIANCE
2. Complete Appendix D: Labor Form No. 7 NOTIFICATION OF COMPLETION
3. Complete Appendix D: Labor Form No. 8 FINAL WAGE COMPLIANCE REPORT
4. Complete your PROJECT BENEFICIARY FORM CDBG-6/7 or 8 (see CDBG 2019 Handbook)
5. IMPORTANT: Submit the three forms above (6-8) with your final Reimbursement Request for CDBG
Funds. Payment will not be made without these forms.
6. Retain records of the CDBG assisted project for five (5) years after grant close out.
H. Monitoring Audit
The Community Development Office may monitor Davis-Bacon projects at the conclusion of the project.
You will be contacted for an appointment date. At the conclusion of the audit, a close-out letter will be
sent to the Chief Elected Official of a City, the Manager of a County Department or Board Chair of a non-
profit, with a copy to the contact person/labor standards officer. Project records are to be retained for
five (5) years.
I. Labor Standards and Enforcement Letters
Labor Standards and Enforcement Letters provide policy advice and guidance for HUD Davis Bacon and
Labor Standards program staff and HUD program participants. These letters explore issues in depth and
explain new programs and changes to programs and procedures.
https://www.hud.gov/program_offices/davis_bacon_and_labor_standards/olr_lrl
(Rev 1) Letter No. LR-96-01
https://www.hud.gov/program_offices/davis_bacon_and_labor_standards/olr_9601
Date: December 2, 1996
Subject: Labor Standards compliance requirements for self-employed laborers and mechanics (aka
Working Subcontractors)
I. HUD Policy on Prevailing Wage Applicability
II. Compliance and Certification Parameters
III. Owners of Businesses Working with their Crews
IV. Owner-Operators of Power Equipment
Johnson County CDBG Program Davis-Bacon Guide 2023 9V. Truck Drivers The Federal prevailing wage requirements and compliance standards for self-employed laborers and mechanics (also referred to as "working subcontractors") have long been a confusing and contentious area for the Department of Labor (DOL), HUD, the Internal Revenue Service and contractors and subcontractors. The following policy represents an effort to provide practical guidance for field application. The guidance more specifically concerns the wage certification requirements for self-employed mechanics and laborers on projects subject to Federal labor standards provisions including Davis-Bacon and HUD- determined maintenance and nonroutine maintenance prevailing wage rate determinations. This policy does not attempt to establish whether working subcontractors are subject to Federal labor standards nor whether such working subcontractors are bona fide. The clear meaning of statutory provisions and regulatory definitions does not require further examination of applicability. Additionally, statutory and regulatory language are clear that the question of whether certain self-employed laborers and mechanics are bona fide subcontractors is not germane to the issue of prevailing wage standard applicability Page 2: I. HUD policy on prevailing wage applicability. The Davis-Bacon Act (DBA), HUD program Related Acts (DBRA) concerning the payment of prevailing wages as determined by the Secretary of Labor, and the U.S. Housing Act of 1937 concerning the payment of prevailing wage rates established by HUD provide that the wage protections afforded in these statutes apply to laborers and mechanics employed on the covered work. The DBA and DBRA implementing regulations (29 CFR Part 5) specifically stipulate that these protections are provided regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Additionally, all laborers and mechanics must be paid unconditionally and not less often than once per week. HUD has followed DBA/DBRA prevailing wage parameters in its implementation, administration and enforcement of HUD-determined maintenance and nonroutine maintenance prevailing wage standards. (NOTE: The requirement to pay weekly wages is not applicable to the payment of prevailing routine maintenance wage rates related to laborers and mechanics engaged in the operation of PHA and IHA housing developments.) Therefore, it is HUD policy that in all cases where laborers and mechanics are employed on Federal prevailing wage-covered construction, maintenance and nonroutine maintenance work, laborers and mechanics shall be entitled to compensation (in the case of Davis-Bacon wages, weekly compensation) at wage rates not less than the prevailing rate for the type of work they perform regardless of any contractual relationship alleged to exist between a contractor or subcontractor and such laborers or mechanics. The above policy statement is not a departure from previous HUD directives. The guidance presented below establishes uniform HUD-assisted program contract administration and enforcement parameters for labor standards compliance and prevailing wage certification. II. Compliance and certification parameters. HUD policy clearly affords prevailing wage protection for all laborers and mechanics, regardless of contractual relationship. There is no exception to this protection for self-employed laborers or mechanics, including owners of businesses, sole-proprietors, partners, corporate officers, or others. This Johnson County CDBG Program Davis-Bacon Guide 2023 10
policy in no way precludes or limits any business or individual from participating in HUD-assisted construction, maintenance, or nonroutine maintenance work. Page 3: issue is not one of eligibility, whether such persons are permitted to work on HUD-assisted projects, but of compliance standards - what HUD will accept from contractors and subcontractors to demonstrate that proper compliance has been achieved. In this context, this Letter establishes a HUD administrative policy that laborers and mechanics may not certify to the payment of their own prevailing wages EXCEPT where the laborer or mechanic is the owner of a business working on the site of the work with his/her own crew. (This exception is described in detail in Paragraph III. Owner- operators of power equipment are discussed in Paragraph IV; Truck drivers are discussed in Paragraph V.) The most frequent occurrence of self-employed workers on HUD-assisted projects involves mechanic/trade classifications (i.e., not laborer classifications). For ease of reference, laborers and mechanics in this context are referred to as "mechanics" and include any case involving laborers. These mechanics may be represented as sole-proprietors, self-employed mechanics, partners, or corporate officers - all with no direct employees engaged in the covered work. Accordingly, HUD, and program participants responsible for labor standards administration and enforcement (e.g., PHAs, IHAs, CDBG recipients), may not accept certified payrolls reporting single or multiple owners (e.g., partners) certifying that they have paid to themselves the prevailing wage for their craft. For example, a sole-proprietor may not submit a payroll reporting himself or herself as simply "Owner" signing the certification as to his/her own wage payment from "draws" or other payment methods. Neither may several mechanics submit a payroll reporting themselves as "partners" with one or more certifying as to the payment of their wages or salaries. Such mechanics must instead be carried on the certified payroll of the contractor or subcontractor (the "responsible employer") for whom they are working and with whom they have executed a "contract" for services. In these cases, maintenance of an accurate accounting of weekly work hours including any overtime hours for such mechanics is essential. Whatever method of compensation computation is utilized (piecework, weekly contract draw for performance), the amount of weekly compensation divided by the actual hours of work performed for that week must result in an "effective" hourly wage rate for that week that is not less than the prevailing hourly rate for the type of work involved. This computation must take into account overtime pay rates (i.e., one and one half) for all hours worked in excess of 40 hours per Page 4: week, pursuant to the Contract Work Hours and Safety Standards Act (CWHSSA), where applicable, and pursuant to the Fair Labor Standards Act where CWHSSA is not applicable. The name, work classification, actual hours of work, effective hourly wage rate, and wage payment for each such mechanic must be reported and certified on the responsible employer's weekly payroll. Note that the effective hourly wage rate for such mechanics may fluctuate from week to week. However, the effective hourly wage rate may not be less than the minimum prevailing rate for the respective craft. In any case where the effective rate falls below the corresponding craft prevailing wage rate, the responsible employer must compensate the mechanic at no less than the prevailing rate on the wage determination for that craft. III. Owners of businesses working with their crew. Johnson County CDBG Program Davis-Bacon Guide 2023 11
Owners of businesses working with their crew on the same HUD-assisted job site may certify to the
payment of their own prevailing wages in conjunction with the prevailing wages paid to their
employees. This exception to reporting standards does not suggest that such owners are not likewise
entitled to prevailing wages for their labor. Rather, it accepts the wage payment certification on weekly
payroll reports by the owner for his/her own wages as that certification accompanies the certification
offered for the payment of prevailing wages to his/her employees. Such owners need only list their
name, work classification including "owner," and the daily and total hours worked. (Such owners do not
need to list a rate of pay or amounts earned.)
IV. Owner-operators of power equipment.
Frequently, owner-operators of power equipment (e.g., backhoes, front-end loaders) will contract for
services at a rate for both "man and machine." In these cases, the owner-operator includes liability,
equipment maintenance, and salary in an hourly or contract rate for services. Because of the prevalence
of such practice and the inherent difficulty in ascribing costs for liability and maintenance costs versus
hourly labor salary, HUD and its program clients may accept a combined ("man and machine") hourly
rate on the responsible contractor's certified payroll provided that such hourly rate may not be less than
the rate on the wage determination for the respective power equipment operator.
Page 5: Note: Owner-operators of power equipment, like self-employed mechanics, may not submit
their own payrolls certifying to the payment of their own wages BUT must be carried on the responsible
contractor's certified payroll report.
V. Truck drivers.
As outlined earlier in this Letter, a DOL administrative policy excludes bona fide owner-operators of
trucks who are independent contractors from DBRA/CWHSSA provisions concerning their own hours of
work and rate(s) of pay. These truck "owner-operators" must be reported on weekly payrolls but the
payrolls do not need to show the hours worked or rates - only the notation "Owner-operator." Note that
any laborers or mechanics, including truck drivers, employed by the owner-operator/independent
contractor are subject to DBRA/CWHSSA provisions in the usual manner.
This policy does not pertain to owner-operators of other equipment such as backhoes, bulldozers,
cranes and scrapers (i.e., power equipment as noted in paragraph IV, above).
These compliance standards shall take effect immediately. Any exceptions to these standards must be
approved in advance in writing by HUD Headquarters Office of Labor Relations.
Any questions concerning this Letter may be directed to the Office of Labor Relations at (202)708-0370
or, in the case of HUD program participants, to the HUD Field Labor Relations Staff with jurisdiction for
your area.
Appendix A: Required Contractor Certifications for a HUD Assisted Construction
Project
These 11 pages must be included in ANY construction contract of $2,000 of more that involves
Community Development Block Grant funds.
Johnson County CDBG Program Davis-Bacon Guide 2023 121. Federal labor Standards Provisions (HUD Form 4010)
2. Certification of Eligibility Under the Davis-Bacon Act
3. Organizational Conflicts of Interest Certification
4. Certification of Non-segregated Facilities
5. Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions
6. Certifications of Civil Rights & Equal Opportunity Laws
7. Clean Air and Water Certification
8. Section 3 of the Housing and Urban Development Act of 1968
9. Subcontracting with Small and Minority Firms, Women’s Business Enterprise, and Labor Surplus Area
Firms
10. Small, Minority, Women-Owned Business Concern Representation
11. Contractor is REQUIRED TO COMPLETE AND SIGN THIS PAGE
Appendix B: Apprentice Registration and Fringe Example
Appendix C: Record of Employee Interview
https://www.hud.gov/sites/documents/11.PDF
Appendix D: Labor Forms 1-8
Labor forms are designed to be completed and submitted in order of the project timeline start to finish.
CONTACT COMMUNITY DEVELOPMENT WITH ANY QUESTIONS!
cdbg@jocogov.org
Johnson County CDBG Program Davis-Bacon Guide 2023 13Appendix A: Required Contractor Certifications
Contractor Certifications
for a HUD Assisted Construction Project
These 11 pages must be included in any construction contract of $2,000 or more and
involving Community Development Block Grant (CDBG) funds.
Table of Contents
Federal Labor Standards Provisions (HUD Form 4010) Page 2
Certification of Eligibility Under the Davis‐Bacon Act Page 7
Organizational Conflicts of Interest Certification Page 7
Certification of Nonsegregated Facilities Page 7
Certification and Disclosure Regarding Payments to Influence Page 8
Certain Federal Transactions
Certifications of Civil Rights & Equal Opportunity Laws Page 8
Clean Air and Water Certification Page 9
Section 3 of the Housing and Urban Development Act of 1968 Page 10
Subcontracting with Small and Minority Firms, Women’s Page 10
Business Enterprise, and Labor Surplus Area Firms
Small, Minority, Women‐Owned Business Concern Page 11
Representation
Contractor is REQUIRED to complete and submit this page Page 11
CDBG Program Page 1 Contractor CertificationsFederal Labor Standards Provisions U.S. Department of Housing
and Urban Development HUD-
4010
Applicability (1) The work to be performed by the classification
requested is not performed by a classification in the
The Project or Program to which the construction wage determination; and
work covered by this contract pertains is being (2) The classification is utilized in the area by the
assisted by the United States of America and the construction industry; and
following Federal Labor Provisions are included in this (3) The proposed wage rate, including any bona fide
Contract pursuant to the provisions applicable to such fringe benefits, bears a reasonable relationship to the
Federal assistance. wage rates contained in the wage determination.
A. 1. (i) Minimum Wages. All laborers and (b) If the contractor and the laborers and mechanics
mechanics employed or working upon the site of the to be employed in the classification (if known), or their
work (or under the United States Housing Act of 1937 representatives, and HUD or its designee agree on
or under the Housing Act of 1949 in the construction the classification and wage rate (including the amount
or development of the project), will be paid designated for fringe benefits where appropriate), a
unconditionally and not less often than once a week, report of the action taken shall be sent by HUD or is
and without subsequent deduction or rebate on any designee to the Administrator of he Wage and Hour
account (except such payroll deductions as are Division, Employment Standards Administration, U.S.
permitted by regulations issued by the Secretary of Department of Labor, Washington, D.C. 20210. The
Labor under the Copeland Act (29 CFR Part 3), the Administrator, or an authorized representative, will
full amount of wages and bona fide fringe benefits (or approve, modify, or disapprove every additional
cash equivalents thereof due at time of payment classification action within 30 days of receipt and so
computed at rates not less than those contained in advise HUD or its designee or will notify HUD or its
the wage determination of the Secretary of Labor designee within the 30-day period that additional time
which is attached hereto and made a part hereof, is necessary. (Approved by the Office of
regardless of any contractual relationship which may Management and Budget under OMB Control Number
be alleged to exist between the contractor and such 1215-0140).
laborers and mechanics. Contributions made or costs
reasonably anticipated for bona fide fringe benefits (c) In the event the contractor, the laborers or
under Section 1(b)(2) of the Davis-Bacon Act on mechanics to be employed in the classification or their
behalf of laborers or mechanics are considered representatives, and HUD or its designee do not
wages paid to such laborers or mechanics, subject to agree on the proposed classification and wage rate
the provisions of 29 CFR 5.5(a)(1)(iv); also, regular (including the amount designated for fringe benefits,
contributions made or costs incurred for more than a where appropriate), HUD or its designee shall refer
weekly period (but not less often than quarterly) under the questions, including the views of all interested
plans, funds, or programs, which cover the particular parties and the recommendation of HUD or its
weekly period, are deemed to be constructively made designee, to the Administrator for determination. The
or incurred during such weekly period. Administrator, or an authorized representative, will
issue a determination within 30 days of receipt and so
Such laborers and mechanics shall be paid the advise HUD or its designee or will notify HUD or its
appropriate wage rate and fringe benefits on the wage designee within the 30-day period that additional time
determination for the classification of work actually is necessary. (Approved by the Office of
performed, without regard to skill, except as provided Management and Budget under OMB Control Number
in 29 CFR Part 5.5(a)(1)(ii) and the Davis-Bacon 1215-0140).
poster (WH-1321) shall be posted at all times by the
contractor and its subcontractors at the site of the (d) The wage rate (including fringe benefits where
work in a prominent and accessible place, where it appropriate) determined pursuant to subparagraphs
can be easily seen by the workers. (1)(b) or (c) of this paragraph, shall be paid to all
workers performing work in the classification under
(ii) (a) Any class of laborers or mechanics which is this contract from the first day on which work is
not listed in the wage determination and which is to performed in the classification.
be employed under the contract shall be classified in
conformance with the wage determination. HUD shall (iii) Whenever the minimum wage rate prescribed in
approve an additional classification and wage rate the contract for a class of laborers or mechanics
and fringe benefits therefore only when the following includes a fringe benefit which is not expressed as an
criteria have been met: hourly rate, the contractor shall either pay the benefit
as stated in the wage determination or shall pay
CDBG Program Page 2 Contractor Certificationsanother bona fide fringe benefit or an hourly case fide fringe benefits or cash equivalents thereof of the
equivalent thereof. types described in Section 1(b)(2)(B) of the Davis-
Bacon Act), daily and weekly number of hours
(iv) If the contractor does not make payments to a worked, deductions made and actual wages paid.
trustee or other third person, the contractor may Whenever the Secretary of Labor has found under 29
consider as part of the wages of any laborer or CFR 5.5 (a)(1)(iv) that the wages of any laborer or
mechanic the amount of any costs reasonably mechanic include the amount of any costs reasonably
anticipated in providing bona fide fringe benefits anticipated in providing benefits under a plan or
under a plan or program, provided, that the Secretary program described in Section 1(b)(2)(B) of the Davis-
of Labor has found, upon the written request of the Bacon Act, the contractor shall maintain records
contractor, that the applicable standards of the Davis- which show that the commitment to provide such
Bacon Act have been met. The Secretary of Labor benefits is enforceable, that the plan or program is
may require the contractor to set aside in a separate financially responsible, and that the plan or program
account assets for the meeting of obligations under has been communicated in writing to the laborers or
the plan or program. (Approved by the Office of mechanics affected, and records which show the
Management and Budget under OMB Control Number costs anticipated or the actual cost incurred in
1215-0140). providing such benefits. Contractors employing
apprentices or trainees under approved programs
2. Withholding. HUD or its designee shall upon its shall maintain written evidence of the registration of
own action or upon written request of an authorized apprenticeship programs and certification of trainee
representative of the Department of Labor withhold or programs, the registration of the apprentices and
cause to be withheld from the contractor under this trainees, and the ratios and wage rates prescribed in
contract or any other Federal contract with the same the applicable programs. (Approved by the Office of
prime contractor, or any other Federally-assisted Management and Budget under OMB Control
contract subject to Davis-Bacon prevailing wage Numbers 1215-0140 and 1215-0017).
requirements, which is held by the same prime
contractor, so much of the accrued payments or (ii) (a) The contractor shall submit weekly for each
advances as may be considered necessary to pay week in which any contract work is performed a copy
laborers and mechanics, including apprentices, of all payrolls to HUD or its designee if the agency is a
trainees and helpers, employed by the contractor or party to the contract, but if the agency is not such a
any subcontractor the full amount of wages required party, the contractor will submit the payrolls to the
by the contract. In the event of failure to pay any applicant sponsor, or owner, as the case may be, for
laborer or mechanic, including any apprentice, trainee transmission to HUD or its designee. The payrolls
or helper, employed or working on the site of the work submitted shall set out accurately and completely all
(or under the United States Housing Act of 1937 or of the information required to be maintained under 29
under the Housing Act of 1949 in the construction or CFR Part 5.5 (a)(3)(i). This information may be
development of the project), all or part of the wages submitted in any form desired. Optional Form WH-
required by the contract, HUD or its designee may, 347 is available for this purpose and may be
after written notice to the contractor, sponsor, purchased from the Superintendent of Documents
applicant, or owner, take such action as may be (Federal Stock Number 029-005-00014-1), U.S.
necessary to cause the suspension of any further Government Printing Office, Washington, D.C. 20402.
payment, advance, or guarantee of funds until such The prime contractor is responsible for the
violations have ceased. HUD or its designee may, submission of copies of payrolls by all subcontractors.
after written notice to the contractor, disburse such (Approved by the Office of Management and Budget
amounts withheld for and on account of the contractor under OMB Control Number 1215-0149).
or subcontractor to the respective employees to
whom they are due. The Comptroller General shall (b) Each payroll submitted shall be accompanied by
make such disbursements in the case of direct Davis- a “Statement of Compliance,” signed by the contractor
Bacon Act contracts. or subcontractor or his or her agent who pays or
supervises the payment of the persons employed
3. (i) Payrolls and basic records. Payrolls and under the contract and shall certify the following:
basic records relating thereto shall be maintained by
the contractor during the course of the work (1) That the payroll for the payroll period contains the
preserved for a period of three years thereafter for all information required to be maintained under 29 CFR
laborers and mechanics working at the site of the Part 5.5 (a)(3) and that such information is correct
work (or under the United States Housing Act of 1937, and complete;
or under the Housing Act of 1949, in the construction
or development of the project). Such records shall (2) That each laborer or mechanic (including each
contain the name, address, and social security helper, apprentice, and trainee) employed on the
number of each such worker, his or her correct contract during the payroll period has been paid the
classification, hourly rates of wages paid (including full weekly wages earned, without rebate, either
rates of contributions or costs anticipated for bona directly or indirectly, and that no deductions have
CDBG Program Page 3 Contractor Certificationsbeen made either directly or indirectly from the full above, shall be paid not less than the applicable wage
wages earned, other than permissible deductions as rate on the wage determination for the classification of
set forth in 29 CFR Part 3; work actually performed. In addition, any apprentice
performing work on the job site in excess of the ratio
(3) That each laborer or mechanic has been paid not permitted under the registered program shall be paid
less than the applicable wage rates and fringe not less than the applicable wage rate on the wage
benefits or cash equivalents for the classification of determination for the work actually performed. Where
work performed, as specified in the applicable wage a contractor is performing construction on a project in
determination incorporated into the contract. a locality other than that in which its program is
registered, the ratios and wage rates (expressed in
(c) The weekly submission of a properly executed percentages of the journeyman’s hourly rate)
certification set forth on the reverse side of Optional specified in the contractor’s or subcontractor’s
Form WH-347 shall satisfy the requirement for registered program shall be observed. Every
submission of the “Statement of Compliance” required apprentice must be paid at not less than the rate
by paragraph A.3.(ii)(b) of this section. specified in the registered program for the
apprentice’s level of progress, expressed as a
(d) The falsification of any of the above certifications percentage of the journeymen hourly rate specified in
may subject the contractor or subcontractor to civil or the applicable wage determination. Apprentices shall
criminal prosecution under Section 1001 of Title 18 be paid fringe benefits in accordance with the
and Section 231 of Title 31 of the United States Code. provisions of the apprenticeship program. If the
apprenticeship program does not specify fringe
(iii)The contractor or subcontractor shall make the benefits, apprentices must be paid the full amount of
records required under paragraph A.3.(i) of this fringe benefits listed on the wage determination for
section available for inspection, copying, or the applicable classification. If the Administrator
transcription by authorized representatives of HUD or determines that a different practice prevails for the
its designee or the Department of Labor, and shall applicable apprentice classification, fringes shall be
permit such representatives to interview employees paid in accordance with that determination. In the
during working hours on the job. If the contractor or event the Bureau of Apprenticeship and Training, or a
subcontractor fails to submit the required records or to State Apprenticeship Agency recognized by the
make them available, HUD or its designee may, after Bureau, withdraws approval of an apprenticeship
written notice to the contractor, sponsor, applicant or program, the contractor will no longer be permitted to
owner, take such action as may be necessary to utilize apprentices at less than the applicable
cause the suspension of any further payment predetermined rate for the work performed until an
advance, or guarantee of funds. Furthermore, failure acceptable program is approved.
to submit the required records upon request or to
make such records available may be grounds for (ii) Trainees. Except as provided in 29 CFR 5.16,
debarment action pursuant to 29 CFR Part 5.12. trainees will not be permitted to work at less than the
predetermined rate for the work performed unless
4. Apprentices and Trainees they are employed pursuant to and individually
registered in a program which has received prior
(i) Apprentices. Apprentices will be permitted to approval, evidenced by formal certification by the U.S.
work at less than the predetermined rate for the work Department of Labor, Employment and Training
they performed when they are employed pursuant to Administration. The ratio of trainees to journeymen
and individually registered in a bona fide on the job site shall not be greater than permitted
apprenticeship program registered with the U.S. under the plan approved by the Employment and
Department of Labor, Employment and Training Training Administration. Every trainee must be paid
Administration, Bureau of Apprenticeship and at not less than the rate specified in the approved
Training, or with a State Apprenticeship Agency program for the trainee’s level of progress, expressed
recognized by the Bureau, or if a person is employed as a percentage of the journeymen hourly rate
in his or her first 90 days of probationary employment specified in the application wage determination.
as an apprentice in such an apprenticeship program, Trainees shall be paid fringe benefits in accordance
who is not individually registered in the program, but with the provisions of the trainee program. If the
who has been certified by the Bureau of trainee program does not mention fringe benefits,
Apprenticeship and Training or a State Apprenticeship trainees shall be paid the full amount of fringe benefits
Agency (where appropriate) to be eligible for listed on the wage determination unless the
probationary employment as an apprentice. The Administrator of the Wage and Hour Division
allowable ratio of apprentices to journeymen on the determines that there is an apprenticeship program
job site in any craft classification shall not be greater associated with the corresponding journeyman wage
than the ratio permitted to the contractor as to the rate on the wage determination which provides for
entire work force under the registered program. Any less than full fringe benefits for apprentices. Any
worker listed on a payroll at an apprentice wage rate, employee listed on the payroll at a trainee rate who is
who is not registered or otherwise employed as stated not registered and participating in a training plan
CDBG Program Page 4 Contractor Certificationsapproved by the Employment and Training 10. (i) Certification of Eligibility. By entering into
administration shall be paid not less than the this contract the contractor certifies that neither it (nor
applicable wage rate on the wage determination for he or she) nor any person or firm who has an interest
the work actually performed. In addition, any trainee in the contractor’s firm is a person or firm ineligible to
performing work on the job site in excess of the ratio be awarded Government contracts by virtue of
permitted under the registered program shall be paid Section 3(a) of the Davis-Bacon Act or 29 CFR
not less than the applicable wage rate on the wage 5.12(a)(1) or to be awarded HUD contracts or
determination for the work actually performed. In the participate in HUD programs pursuant to 24 CFR Part
event the Employment and Training Administration 24.
withdraws approval of a training program, the
contractor will no longer be permitted to utilize (ii) No part of this contract shall be subcontracted to
trainees at less than the applicable predetermined any person or firm ineligible for award of a
rate for the work performed until an acceptable Government contract by virtue of Section 3(a) of the
program is approved. Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD
(iii) Equal employment opportunity. The utilization programs pursuant to 24 CFR Part 24.
of apprentices, trainees and journeymen under this
part shall be in conformity with the equal employment (iii) The penalty for making false statements is
opportunity requirements of Executive Order 11246, prescribed in the U.S. Criminal Code, 18 U.S.C. 1001.
as amended, and 29 CFR Part 30. Additionally, U.S. Criminal Code, Section 1 01 0, Title
18, U.S.C., “Federal Housing Administration
5. Compliance with Copeland Act requirements. transactions,” provides in part: “Whoever, for the
The contractor shall comply with the requirements of purpose of . . . influencing in any way the action of
29 CFR Part 3 which are incorporated by reference in such Administration …..makes, utters or publishes
this contract. any statement knowing the same to be false…..shall
be fined not more the $5,000 or imprisoned not more
6. Subcontracts. The contractor or subcontractor will than two years, or both.”
insert in any subcontracts the clauses contained in 29
CFR 5.5 (a)(1) through (10) and such other clauses 11. Complaints, Proceedings, or Testimony by
as HUD or its designee may by appropriate instruction Employees. No laborer or mechanic to whom the
require, and also a clause requiring the wage, salary, or other labor standards provisions of
subcontractors to include these clauses in any lower this Contract are applicable shall be discharged or in
tier subcontracts. The prime contractor shall be any other manner discriminated against by the
responsible for the compliance by any subcontractor Contractor or any subcontractor because such
or lower tier subcontractor with all the contract employee has filed any complaint or instituted or
clauses in 29 CFR Part 5.5. caused to be instituted any proceeding or has testified
or is about to testify in any proceeding under or
7. Contract termination; debarment. A breach of relating to the labor standards applicable under this
the contract clauses in 29 CFR Part 5.5 may be Contract to his employer.
grounds for termination of the contract and for
debarment as a contractor and a subcontractor as B. Contract Work Hours and Safety Standards
provided in 29 CFR 5.12. Act. As used in this paragraph, the terms “laborers”
and “mechanics” include watchmen and guards.
8. Compliance with Davis-Bacon and Related Act
Requirements. All rulings and interpretations of the (1) Overtime requirements. No contractor or
Davis-Bacon and Related Acts contained in 29 CFR subcontractor contracting for any part of the contract
Parts 1, 3, and 5 are herein incorporated by reference work which may require or involve the employment of
in this contract. laborers or mechanics shall require or permit any
such laborer or mechanic in any workweek in which
9. Disputes concerning labor standards. Disputes he or she is employed on such work in excess of eight
arising out of the labor standards provisions of this hours in any calendar day or in excess of forty hours
contract shall not be subject to the general disputes in such workweek unless such laborer or mechanic
clause of this contract. Such disputes shall be receives compensation at a rate not less than one
resolved in accordance with the procedures of the and one-half times the basic rate of pay for all hours
Department of Labor set forth in 29 CFR Parts 5, 6, worked in excess of eight hours in any calendar day
and 7. Disputes within the meaning of this clause or in excess of forty hours in such workweek,
include disputes between the contractor (or any of its whichever is greater.
subcontractors) and HUD or its designee, the U.S.
Department of Labor, or the employees or their
representatives. (2) Violation; liability for unpaid wages; liquidated
damages. In the event fo any violation of the clause
set forth in subparagraph (1) of this paragraph, the
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