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
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 (HUD 4230A) 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
NOTICE – Unique Entity ID / SAM Registration: When advertising your project, it is imperative to notify prospective bidders that the Prime/General Contractor must have a
SAM Unique Entity ID assigned and a
complete, active SAM registration prior to contract award [85 FR 49523, 25.205], and
not be excluded from participating in any federal assistance program [24 CFR 85, Subpart C 85.35]; and subcontractors must have a
SAM Unique Entity ID assigned [85 FR 49523, 25.300] prior to contract award and
not be excluded from participating in any federal assistance program [24 CFR 85, Subpart C 85.35]. Construction contracts for CDBG grant-funded projects cannot be awarded unless/until those conditions are met. See
SAM.gov | Entity Registrations for registration information.
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 Bid Checklist guidance document and Sample Contract Documents. These documents were update July 2022 to also include the Section 3 New Rule requirements and forms. If you choose to not use the Sample Bid and Contract Documents provided, all certifications and required language must be included in the documents produced.
Grantees are required to notify DCEO and U.S. Department of Labor of the contract award
within 10 days of the award.
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.
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 and the executed Certificate from Contractor Appointing Officer or Employee to Supervise Payment of Employees.
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.
If fringe benefits are paid to a plan instead of in cash, the hourly contribution must be determined. Documentation of the plan and the amount paid into the plan per employee must be submitted with the first payroll. Use the Contractor’s Fringe Benefit Statement to document fringe benefits paid to employees. Fringe benefits include health insurance and retirement. They do not include employer payments or contributions required by other federal, state, or local laws, such as the employer's contribution to Social Security or some disability insurance payments.
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.