Davis Bacon Compliance and Resources
Forms that are italicized must be completed and submitted in compliance with Davis Bacon.
All construction funded in whole or in part with CDBG funding is subject to federal labor standards. The principal labor laws which must be complied with on all contracts involving federal funds are the Davis-Bacon Prevailing Wage Act (40 USC 276), the Copeland Anti-Kickback Act (40 USC 276c), and the Contract Work Hours and Safety Standards Act (40 USC 327-330).
The Davis Bacon Act stipulates that all laborers and mechanics employed on any federally-assisted work must be paid wages that are prevailing in their labor market for the corresponding classes of workers as determined by the Secretary of Labor, and all laborers and mechanics must be paid at least once per week. The Wage Rate Determinations must be obtained through the Office of Community Development by completing the Wage Rate Determination Request Form. Wage Rates must be requested prior to the Bid Advertisement and Bid Opening; and updated if the contract is not awarded within 90 days of the bid opening and/or if construction is not started within 90 days of the contract award date. The most current Wage Rate Determination and the Davis Bacon Provisions must be contained in all bid documents and contract documents, including subcontracts.
Wage Rate Determinations
Requests for wage rate determinations must be submitted at least 14 days prior to the bid advertisement date. Grantees are also required to submit the Advertisement for bid and bid packets for review at this time.
If a Classification is missing from the Wage Rate Determination, the Grantee, Engineer, or other administrative agency IS NOT allowed to pull Wage Rate Determinations for other Categories in which the missing Crafts/Classifications may be found. The Conformance Process must be used to request the additional classifications be made applicable to the WRD in effect for the project. The Grant Administrator should work with the Prime Contractor and the CDBG Labor Standards Officer to request the additional classification. The Request for Additional Classification Form (Standard Form 1444) and a formal letter of request (on Contractor’s letterhead) must be signed by the Contractor and submitted to the Labor Standards Officer after the preconstruction construction conference and within 30 days of the construction start date. The construction start date is defined as the first day of the first payroll.
HUD Davis Bacon Resource Documents
Bid Process/Contract Documents
The latest guidance received from HUD’s Office of Davis Bacon Labor Standards, November 2022, indicates that it is not necessary for construction contractors working on CDBG grant-funded projects to be registered in sam.gov and receive a Unique Entity Identifier (UEI). However, when advertising your project, it is imperative to notify prospective bidders that the Prime/General Contractor, or any potential subcontractor, must not be excluded from participating in any federal assistance program [24 CFR 85, Subpart C 85.35; HUD 4010]. Construction contracts for CDBG grant-funded projects cannot be awarded to parties excluded from receiving federally-funded or assisted contracts. See SAM.gov | Home > Search > Entity Information > Exclusions. Choose “All Words” and enter the name of the entity you are searching for; also check the name of the principal/owner of the company for any exclusions. The search must yield “No Results” or “No Exclusions.” Print the results for reporting to the agency and to be retained in the grant file.
The federal labor standards provisions and the wage rate determination must be included in all bid documents and construction contracts, including subcontracts. These requirements and additional requirements such as copies of the Contractor's Certification and Subcontractor's Certification concerning labor standards prevailing wages are included in the CDBG Bid Contract Checklist guidance document and CDBG Bid and Contract Documents. The CDBG Bid and Contract Documents must be used for the bid letting and production of CDBG grant-funded construction contracts. The Office of Community Development, effective August 2023, will no longer allow the production/use of alternate bid specifications or contract documents for CDBG grant-funded construction projects. The only exception is joint-funded IEPA or USDA RD projects. However, all CDBG requirements and certifications must be included and appropriately identified.
Please note when preparing bid and contract documents for an “On Behalf Of” project, the CDBG Grantee is the responsible entity.
PRIOR APPROVAL OF BID ADVERRTISMENT / CONTRACT DOCUMENTS REQUIRED
Bid Advertisements and bid specifications must be submitted to program compliance staff with the initial Wage Rate Determination request at least 14 days prior to the bid advertisement date. The WRD for the bid advertisement will not be issued if the bid advertisement or bid packet are found to be insufficient. Additionally, all contract documents must be submitted for review and approval by program compliance staff following the bid opening and prior to the formal execution of the construction contract/agreement. Failure to do so will delay the approval of the Notice of Contract Award (NOCA-HUD 2516) and subsequent release of grant funds.
Grantees are required to notify DCEO and the U.S. Department of Labor (DOL) of the contract award within 10 days of the award. The contract award date is the date the contract is executed. Submission of the DCEO Notice of Contract Award must include the following documentation: 1. Copy of contractor/sub-contractor eligibility verification (sam.gov “No Exclusions” search results); 2. Copy of Bid Tabulation; and 3. Copy of the fully completed and signed Contractor Profile Form.
Contractor Profile Form
It is necessary that all contractors working on CDBG-grant funded projects know and understand their responsibilities in complying with the federal labor standards and other grant requirements. Effective for all contracts awarded after December 1, 2022, DCEO requires that CDBG Grant Administrators meet with the Prime Contractor at the time the contract is awarded to complete the “Contractor Profile Form”. The Contractor Profile form must be submitted to DCEO with the Notification of Contract Award (NOCA) along with the sam.gov verification of “No Exclusions” for the Prime Contractor and any subcontractors that may be listed on the NOCA. The Contractor Profile Form will remove the necessity to submit two additional forms – the Contractor’s Fringe Benefit Statement, and Certificate from Contractor Appointing Officer or Employee to Supervise Payment of Employees. Completing the Contractor Profile Form at the time of contract award also alleviates some confusion at the preconstruction conference. The Grant Administrator should reference the Contractor Profile form when reviewing the CDBG construction payrolls to verify authorized signatures and fringe benefit information.
CDBG Grantees are required to conduct a pre-construction conference after the formal award of the construction contracts (all contract documents are fully executed by the Grantee and contractor). The purpose of the preconstruction conference is to ensure the Grantee, Contractors and subcontractors are thoroughly instructed as to their duties and responsibilites in adhering to the federal regulations covering CDBG grant-funded projects. The Preconstruction Conference Checklist and Minutes must be used to document participation and includes links to required documents for dissemination to conference participants.
Preconstruction Conference Checklist
The Notice to Proceed can be issued as the closing of the preconstruction conference, but must not be signed prior to holding the preconstruction conference and all parties certifying understanding of the federal requirements associated with the the CDBG funded construction project. The Notice to Proceed is submitted to DCEO with the Certified Preconstruction Minutes.
Work Site Postings
The Federal Fair Labor Standards Act Poster, the Employee Rights Under the Davis-Bacon Act Poster, and the Know Your Rights under Illinois Employment Laws must be posted at the worksite and photos kept in the grant file for documentation of compliance. The posters are available in English and Spanish.
For each weekly period of construction, copies of Certified Payrolls and a Statement of Compliance are required from prime contractors and all subcontractors. A self-employed contractor must be shown on the “responsible” contractor’s payroll. (Refer to HUD Letter No. LR-96-01.)
The Department prefers Contractors use Payroll Form WH-347. The payroll used must contain all information required on the WH-347 and the Statement of Compliance must be the exact same wording as on the reverse of WH-347. Payroll forms and instructions are listed below for your use.
The Grant Administrator must conduct employee interviews for each craft/classification working on the CDBG grant funded project. Using a HUD Form 11, Record of Employee Interview Form, systematic employee interviews must be conducted to assure that the payroll information is consistent with the wage rate determination, and employees are working in their proper job classifications.
Construction Management – Labor Standards Compliance Checklist
Effective December 1, 2022, The CDBG Grantee and/or its administrative designee will be required to maintain the “CDBG Construction Management Checklist” as part of its CDBG Grant file. The Checklist is broken-out into sections for Bid specifications and documents; Contract Documents; Payrolls; and Section 3 Reporting. If followed during the administration of the construction project, this checklist will also assist the administrative entity or engineer in maintaining proper CDBG grant files and documentation required to avoid potential findings or concerns at monitoring.