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Understanding the Davis-Bacon Act: Compliance Steps for Federal Projects

The Davis-Bacon Act outlines essential labor standards for federal projects involving contracts over $2,000, ensuring minimum wages and other labor standards are upheld. To comply, contractors must follow specific steps: request wage rates, contractor clearance, and submit notices of contract action. Conduct preconstruction conferences and ensure payroll submissions align with the wage decision. Job site interviews are crucial. Common pitfalls include failing to secure wage determination and contractor clearance. For guidance, contact Pam Truitt, Grants Consultant at DCA.

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Understanding the Davis-Bacon Act: Compliance Steps for Federal Projects

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  1. CDBG LABOR STANDARDS

  2. What is the Davis-Bacon Act? • Outlines labor standards for federal projects • Includes all contracts > $2K involving federal funds • Provides minimum wages by position • Ensures minimum pay & other labor standards are enforced at work site September 30, 2010

  3. Steps to Complying with Davis-Bacon Labor Standards • Request for Wage Rates • Request for Contractor Clearance • Notice of Contract Action • Preconstruction Conference • Payroll Submission and Review September 30, 2010

  4. Request for Wage Determination • Submit request to Pam Truitt at DCA • 30 days prior to advertising for contract bids • Wage rates, posters and Notice of Contract Action form will be sent to you • Wage rates must be a part of the bid package September 30, 2010

  5. Request for Contractor Clearance • Form can be mailed, e-mailed or faxed to Pam Truitt • Ensures that contractor is not on Federal Debarred list • Must be cleared before entering into a contract September 30, 2010

  6. Notice of Contract Action • Must be submitted to DCA twice • First Time - When contract is awarded • Verify that the appropriate Wage Decision was used • Second Time - When construction begins • Field Reps will schedule formal labor review after form has been submitted • Construction drawdowns will be withheld if not submitted September 30, 2010

  7. Preconstruction Conference • Mandatory, conducted by your grant administrator with the contractor • Held prior to the start of construction • Outlines contractor & subcontractor responsibilities, project timelines, logistics, etc. • Explains Davis-Bacon, other applicable laws & contract provisions • Notify your CDBG Field Rep of place and time September 30, 2010

  8. Wage Decision & Posters • A copy of both must be posted on the Job Site • Employees must be able to view • Protect from the weather September 30, 2010

  9. Payrolls • Contractors must submit all payrolls to grant recipient • Must include the name, address and last 4 digits of SSN of each worker the first time they appear • Every payroll must • list the worker’s classification, which must match the Wage Decision document • include the hourly rate of pay • be numbered, with the last payroll labeled “Final Payroll” • be certified by the owner, officer or designee of the construction company September 30, 2010

  10. Job Site Interviews • Have to be conducted on representative # of workers in each classification • Interview responses should be checked against Wage Decision and payrolls • CONDUCT INTERVIEWS EARLY AND OFTEN September 30, 2010

  11. Common Pitfalls • Failure to obtain a wage determination prior to solicitation for bids • Not obtaining Contractor Clearance before entering into a contract • Payrolls not submitted on a weekly basis • Payroll job classifications not matching wage decision classifications September 30, 2010

  12. Contact Information Pam Truitt, Grants Consultant Phone: (404) 679-5240 E-Mail: pam.truitt@dca.ga.gov September 30, 2010

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