Labor Standards Applicability and Requirements

APPLICABILITY OF FEDERAL LABOR STANDARDS:

HOME Investment Partnerships Program

DBRA requirements are applicable to contracts for construction that cover12, or more,HOME-assisted units. Assisting units includes construction and non-construction activities such as acquisition, professional services (architecture, engineering, etc.), and homebuyer assistance. Once Davis-Bacon is triggered, it is applicable to the entire project, including portions of the project not funded by HOME.

542c Risk Sharing Program

DBRA apply to 542(c) projects if all of the following conditions are met:

a) Advances for the project are insured under this part;

b) The project involves new construction or substantial rehabilitation; and,

c) The project will contain 12 or more dwelling units.

FEDERAL LABOR STANDARDS REQUIREMENTS:

Bids & Contracts

All bids and contracts that are subject to DBRA must include the federal labor standards clauses found in HUD 4010.The federalwage determination for the county in which the project is located must also be included. For bids, include a clause that states the wage determinations are “for information purposes only.” Wage determinations may change. The award date will lock-in the current wage determination. Please contact MFA’s Labor Standards Officer to obtain the correct wage decision.Wage determinations may also be found at the following website:

Bids and contracts should also include the certified payroll form, WH-347. This form is available on-line and can be filled out electronically. WH-347 and instructions are available on the DOL website:

Developers are required to provide MFA with the following:

  • A copy of all contracts (with the general contractor and sub-contractors) that include the federal labor standards clauses (HUD 4010), wage determination, and payroll form.
  • Proof the subcontractors are not ineligible. Check EPLS website:

If the DOL wage determination does not include wage classifications that will be required on the project (roofer, soft floor layer, etc.), contact MFA as soon as possible so the Labor Standards Officer can request additional wage classifications from HUD and DOL. The process can take 6-8 weeks. If construction begins before the proposed wage classifications and wage rates are approved, you will be required to pay these workers the highest wage rate from the DOL wage determination.

Prime Contractor Responsibilities

  • Ensurecompliance of all employees and subcontractors.
  • Submit weekly certified payrolls to MFA’sLabor Standards Officer. Certified payrolls must be received by MFA no later than 7 calendar days after the end of the work week.
  • Review sub-contractor’s payrolls for accuracy prior to submitting to MFA. Be sure they are using the correct wage classifications and wage rates.
  • Notify subcontractors of underpayment, and ensure timely payment of restitution. If a worker is underpaid, a letter requesting restitution will be sent by MFA. The employer has 30 days to pay restitution.
  • Submit certified payrolls stating “No Work Performed” for non-performance weeks.
  • Post the Davis Bacon posters and wage determinations on site.

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MFA Responsibilities

  • MFA’s Labor Standards Officer will administer and enforce federal labor standards.
  • Review contracts and subcontracts for labor standards clauses and correct wage determination(s).
  • Provide contractor training regarding responsibilities for labor standards compliance.
  • Submit requests for additional wage classifications and wage rates.
  • Review weekly certified payrolls for compliance and ensure employees are paid the correct wage rate.
  • Conduct periodic employee interviews on site and verify payroll data to ensure employees are paid appropriate wages.
  • Ensure Davis Bacon posters and wage determinations are posted on site.

For additional information, see Making Davis Bacon Work: A Contractor’s Guide to Prevailing Wage Requirements for Federally Assisted Construction Projects. Please direct any questions tothe MFA Labor Standards Officer, at 505-843-6880 or visit

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