Davis-Bacon Act Compliance

During the bidding phase of the project, the Davis-Bacon contract language and appropriate wage determinations must be included in the contract documents. The contract language is included in the Non-Equivalency Project Contract Boilerplate Language and Equivalency Project Contract Boilerplate Language documents. The wage determinations must be current and that which is in effect 10 days prior to bid opening. You must check if the wage determination has been updated 10 days prior to bid opening and the updated wage determination must be incorporated via addendum

Wage determinations can be obtained through SAM.gov. The appropriate Davis-Bacon wage determination is identified based upon the work that constitutes the majority of the contract foreach contract that is supported by loan financing. The U.S. Department of Labor (DOL) All Agency Memoranda Numbers 130 and 131 contain guidelines for selecting the appropriate construction type. It is appropriate to incorporate more than one Davis-Bacon wage rate classification into a construction bid contract if the cost of the items in the second construction type exceeds either$2.5 million or 20 percent of the total project construction costs. Further information on this is provided in DOL All Agency Memorandum Number 236. Any questions or disputes regarding the appropriate classification of a project and the type of construction should be referred the DOL Wage and Hour Division for resolution prior to bid opening.

During construction of the SRF project, the appropriate Davis-Bacon wage rate determinations along with the Davis-Bacon poster (WH1321) must be posted in all relevant languages at the construction site protected from the weather.

The loan recipient must complete and submit the EGLE form EQP1455, Davis-Bacon Act Compliance Certification with each request for loan reimbursement when reimbursement is being requested for construction costs. Although submitted with the monthly request for loan reimbursement, the certification must be based on a weekly review of contractor payroll records.

• Collect weekly payroll records, using DOL Form WH-347 or its equivalent, and certifications from its contractors of Davis-Bacon and Related Acts (DBRA) compliance for all laborers and mechanics. These payroll records must be collected for each week of contract work from the prime contractor for each contract. An example DBRA compliance statement can be found on the back of DOL Form WH-347.
• Spot-check payroll submissions to confirm that contractors are paying employees weekly and paid the established wage determination along with fringe benefit contributions.
• Interviews with a sampling of contractor and subcontractor employees must be conducted periodically to verify that contractors and subcontractors are paid in accordance with Davis-Bacon Requirements. Interviews must be documented, using General Services Administration Form SF-1445 or its equivalent. At least two interviews should be conducted on every SRF loan project. A higher frequency is recommended for projects which will take one year or more to complete or where the loan recipient finds a pattern of errors in weekly payroll submissions.
• Verify that contractors have the proper registrations/certifications for all apprentices and trainees working on the project. Additionally, verify that the number of apprentices and trainees working on the project is consistent with the ratio prescribed in the apprenticeship or trainee program. This review should be completed on the same schedule as wage interviews.

Yes. For questions not answered in this document, please consult the U.S. DOL Davis-Bacon and Related Acts website. The site contains guidance, fact sheets, rules, and other resources. You may also contact the DOL Wage and Hour Division.

This guidance was developed in part with guidance and resource documents from the U.S. DOL and Davis-Bacon and Related Acts website and may be impacted by changes to DOL guidance.

Truck drivers that are employed by contractors and subcontractors must be paid DBRA wages for:

• Onsite time (hauling materials between two locations within the site of work).
• Time spent transporting significant portion of a public work from secondary construction sites or between adjacent dedicated support sites and the primary worksite.
• Onsite time related to offsite delivery if such time is not de minimis.

The driver’s time spent onsite during a typical day or workweek must be used to determine if the delivery time can be considered de minimis. Further clarification on transportation coverage and de minimis for truck drivers can be found in DOL All Agency Memorandum Number 244.

No, the certified payrolls must be collected weekly and reviewed periodically.

Yes, the following items may be completed by the loan recipient or a designated representative they choose, such as a consultant. These items include reviewing payroll reports, fringe benefit contributions, verifying apprentice/trainee registration, and conducting employee interviews.

Yes. In this case, a construction management or engineering consulting firm is acting as your general contractor and is responsible for Davis-Bacon compliance for all its subcontractors.

All records must be kept on file by the loan recipient for seven years from the date of the administrative completion letter sent by EGLE.

No, Davis-Bacon does not apply to force account work. Projects utilizing force account for construction will pay employees their regular salary and fringe benefit rate.

Both terms refer to the applicant/municipality that awards the construction bid contract.