Complying with Davis-Bacon

Information by State  Print version   Related Information   Making Davis-Bacon Work: A Practical Guide for States, Indian Tribes and Local Agencies   A Contractor’s Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects   DOL's "Wage Determination" website for Davis-Bacon   Find Labor Relations staff in your area for assistance

The American Recovery and Reinvestment Act of 2009 (ARRA) requires OHHLHC grantees to comply with the prevailing wages established under the Davis-Bacon Act for the area in which your grant is focused. Your grant's "Terms and Conditions" stipulate this added requirement (HUD 1044).

The Davis-Bacon and Related Acts (DBRA) requires all contractors and subcontractors performing work on federal or District of Columbia construction contracts, or federally-assisted contracts in excess of $2,000, to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. The prevailing wage rates and fringe benefits are determined by the Secretary of Labor for inclusion in covered contracts.

Office of Health Homes and Lead Hazard Control (OHHLHC) grantees have historically been exempt from the requirements of DBRA. Because the ARRA requires lead hazard control grantees to comply with Davis-Bacon, this policy guidance will assist your grant programs with complying with these new requirements. OHHLHC understands that compliance with Davis-Bacon may result in increased per-unit costs and other unforeseen administrative costs, and, therefore, will affect your budgets. In this case, once you have ascertained the impact of Davis-Bacon compliance upon your program, you are advised to contact your Healthy Homes Field Representative (HHR) and Government Technical Representative (GTR) to establish new program benchmarks and budget.

It is important to note that OHHLHC grantees must still comply with requirements stipulated under the FY2008 NOFA, such as the requirement that a minimum percentage of funds must be used on direct lead hazard control activities, in accordance with the NOFA, and no more than 10% may be used on administrative costs. Your HHR and GTR will work with you to revise your work plan and associated budget to ensure you have a viable program. For recipients of Healthy Homes Demonstration and Healthy Homes Technical Studies grants, the requirement to comply with the DBRA will depend upon the nature of work being conducted. Typically, since the DBRA applies to construction laborers and mechanics, whether a specific activity is covered under DBRA will vary. OHHLHC advises you to consult with your local labor relations specialist to discuss the extent and nature of your project. Some, or all, of your grant's activities may be exempt from DBRA. Labor Relations staff can assist you in making that determination; do not assume your grant is exempt. Contact information for HUD's Labor Relations staff in your area is provided at the Office of Labor Relations website.

Taking the First Step

The first step to take in complying with Davis-Bacon is to become familiar with the resources available to you on this website. In addition, there are other resources available to you in your local government and community that will be able to assist you. Your local CDBG administrator and HUD Labor Relations staff will be able to assist you in gaining familiarity with Davis-Bacon's requirements. HUD has Labor Relations Specialists in each region to assist you.

The Davis-Bacon Wage Determination Process

You must determine prevailing wages to be paid for lead hazard control work prior to bidding that work. What follows is an overview of the process your program will follow to determine the prevailing wages in the community where you will be working. Because Davis-Bacon is concerned with establishing the minimum prevailing wages for your community, you will want to know what those wages are for lead hazard control projects. Some communities already have wage determinations for "lead abatement workers" or some other labor category that applies to lead paint remediation activities. However, many communities do not have these categories established. The first thing to do is visit the Department of Labor's (DOL) "Wage Determination" website for Davis-Bacon.

Follow the steps below:

Activities Subject to Davis-Bacon

Only actual construction activities fall under the Davis-Bacon prevailing wage requirements, such as those commonly associated with lead-based paint hazard control. However, associated activities that are not generally performed by laborers or mechanics may not be subject to DBRA. For example, risk assessments, lead inspections, staff used in the relocation of occupants, carpet cleaning, installation of smoke/carbon monoxide detectors and so forth, are exempt from Davis-Bacon prevailing wage compliance. A word of caution: misince the applicability under DBRA is new for OHHLHC and grantees alike, you are advised to contact your local HUD Labor Relations Specialist in your region (contact information on the website) before making any assumptions.

Frequently Asked Questions: Davis-Bacon's Impact on OHHLHC Programs

• Reporting: Davis-Bacon will increase the amount of reporting your program must perform. Take this into consideration when discussing any work plan/budget revisions with OHHLHC staff. Specific details about reporting requirements are contained in "Making Davis-Bacon Work: A Practical Guide for States, Indian Tribes and Local Agencies", but your local HUD Labor Relations contact will be able to guide you through this, as well. Information is also available for contractors required to comply with Davis-Bacon, in the publication called "A Contractor’s Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects".
• State Prevailing Wages: If your State has issued prevailing wage requirements for lead hazard control work, and those prevailing wages are higher than the Davis-Bacon prevailing wage, you must use the higher of the two wages. However, you must obtain a wage determination from the DOL website regardless, and not from your state's labor department alone.
• Exemptions and Unit Thresholds: Davis-Bacon requirements are applicable to ALL units receiving OHHLHC ARRA funds in excess of $2,000. When OHHLHC funds are used in part or in whole with other program funds that are exempt from ARRA requirements for the DBRA (e.g., CDBG and HOME funds), DBRA prevailing wages must be complied with for ALL funds used in the project. This requirement applies not only to the lead hazard control work, but also extends to the work being done using CDBG and/or HOME funds.