LABOR STANDARD PROCEDURES & PREVAILING WAGE REQUIREMENTS

The general contractor, his subcontractors and any lower tier of subcontractors are subject to all labor standard procedures and prevailing wage requirements.

FHA FORM 2482-A, General Contractors and Subcontractors Statement, must be executed by the eneral contractor and must be executed and submitted to FHA, through the general contractor, in duplicate, by each subcontractor and each sub-subcontractor, within ten (10) days after the execution of any subcontract. Contracts may not be let to persons or firms designated as ineligible by the Comptroller-General and/or the FA Commissioner. File of such ineligibles is available for inspection at FHA prior to subcontracting any work.

"INIMUM WAGES: The predetermined prevailing wage rates for the project are the minimum wages that may be paid for all hours worked. F.H.A. does not enforce overtime.

CLASSIFICATIONS: (1) Only those classifications for which prevailing wage rates have been determined may be employed on the project. Each workman must be classified and paid in accordance with the work he actually performs. The general contractor must advise F.H.A. immediately if he, any subcontractor or sub-subcontractor will employ workmen in different classifications than those on the prevailing wage determination, FHA will furnish instructions for obtaining wage rates for such classifications.

(2) Workmen employed in more than one classification of work calling for different rates of pay, during the same day or same work week, must be paid for all their hours of labor at the highest rate of pay for any of the classifications in which they were employed. The only exception to this rule is where daily time records are maintained for workmen so employed; such time records must show the hours of labor and rate of pay for each classification and must be signed by the workmen. Further, the payrolls must clarify the breakdown of labor and pay and duplicate copies of the relevant time records must be attached to the respective payrolls - and the duplicates must also be signed by the workmen. Eve APPRENTICES: (1) Prior to using any apprentices, copy of the contractor's apprenticeship program, which has been registered with the appropriate State or Federal agency, must be submitted to FHA. The ratio of apprentices to journeymen employed by a contractor on the project may not be greater than the ratio permitted as to his entire work force.

(2) Unregistered apprentices must be paid the predetermined rate for the classifications of work actually performed. With the first payroll on which the name of any apprentice appears, evidence must be submitted that such apprentice is registered INDIVIDUALLY under a bona fide apprenticeship program which is registered with a State Apprenticeship Council, or, if no such council exists in the State, under a program registered with the Bureau of Apprenticeship & Training, U.S. Dept. of Labor. from the appropriate agency stating that the apprentice is registered, or a true or photostatic copy of the apprentice agreement showing the approval of the appropriate agency, may be submitted as evidence of registration.

A letter

Workmen

PARTNERSHIP, PIECEWORK OR PROFIT-SHARING LABOR ONLY WORK ARRANGEMENT OR CONTRACT: employed on such a basis must be reported on the standard certified weekly payrolls showing each hour of labor performed during the pay period and must be paid unconditionally each week at not less than the predetermined hourly wage rates for the reported hours of labor at their crafts. Such workmen will be considered as 'employees' of the contractor who engaged the services of the workman or group of workmen on such a basis.

PAYROLLS: Must be submitted weekly. Following information required on every payroll: (1) Workman's name

(2) Address to be reported first time only, unless it is changed.

(3) Social Security Number

(4) Correct Classification (Report indenture period for apprentices (5) Exact hourly rate of pay

(6) Daily and total weekly number of hours worked

(7) Gross wages earned

(8) Deductions made

(9) Net wages paid

(10) Certification - signed by employer or authorized person (copy of authorization to FHA)

are those permitted by the Secretary of Labor Regulations, Part 3.

weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said

from the full weekly wages eamed by any person and that no deductions have

(Contractor or subcontractor) been made either directly or indirectly from the full wages eamed by any person, other than permissible deductions as defined in Regulations, Part 3 (29 CFR Subtitle A), issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat. 948.63 Stat. 108, 72 Stat. 967; 76 Stat. 357; 40 U.S. C. 276c), and described below:

(2) That any payrolls otherwise under this contract required to be submitted for the above period are correct and complete; that the wage rates for laborers or mechanics contained therein are not less than the applicable wage rates contained in any wage determination incorporated into the contract; that the classifications set forth therein for each laborer or mechanic conform with the work he performed

(3) That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the Bureau of Apprenticeship and Training, United States Department of Labor, or if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship and Training, United States Department of Labor.

(4) That:

(•) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS, OR PROGRAMS

In addition to the basic hourly wage rates paid to each laborer or mechanic listed in the above referenced payroll, payments of fringe benefits as listed in the contract have been or will be made to appropriate programs for the benefit of such employees, except as noted in Section 4(c) below.

(b) WHERE FRINGE BENEFITS ARE PAID IN CASH

Each Laborer or mechanic listed in the above referenced payroll has been paid as indicated on the payroll, an amount not less than the sum of the applicable basic hourly wage rate plus the amount of the required fringe benefits as listed in the contract, except as noted in section 4(c) below.

THE WILFUL FALSIFICATION OF ANY OF THE ABOVE STATEMENTS MAY SUBJECT THE CONTRACTOR OR SUBCONTRACTOR TO CIVIL OR CRIMINAL PROSECUTION SEE SECTION 1001 OF TITLE 18 AND SECTION 291 OF TITLE 31 OF THE UNITED STATES CODE

Form WH-348 (1/68)

INSTRUCTIONS FOR PREPARATION OF

STATEMENT OF COMPLIANCE

This statement of compliance meets needs resulting from the amendment of the DavisBacon Act to include fringe benefits provisions. Under this amended law, the contractor is required to pay fringe benefits as predetermined by the Department of Labor, in addition to payment of the minimum rates. The contractor's obligation to pay fringe benefits may be met by payment of the fringes to the various plans, funds, or programs or by making these payments to the employees as cash in lieu of fringes.

The contractor should show on the face of his payroll all monies paid to the employees whether as basic rates or as cash in lieu of fringes. The contractor shall represent in the statement of compliance that he is paying to others fringes required by the contract and not paid as cash in lieu of fringes. Detailed instructions follow:

Contractors who pay all required fringe benefits:

A contractor who pays fringe benefits to approved plans, funds, or programs in amounts not less than were determined in the applicable wage decision of the Secretary of Labor shall continue to show on the face of his payroll the basic cash hourly rate and overtime rate paid to his employees, just as he has always done. Such a contractor shall check paragraph 4(a) of the statement to indicate that he is also paying to approved plans, funds, or programs not less than the amount predetermined as fringe benefits for each craft. Any exception shall be noted in Section 4(c).

Contractors who pay no fringe benefits:

A contractor who pays no fringe benefits shall pay to the employee and insert in the straight time hourly rate column of his payroll an amount not less than the predetermined rate for each classification plus the amount of fringe benefits determined for each classification in the applicable wage decision. Inasmuch as it is not necessary to pay time and a half on cash paid in lieu of fringes, the overtime rate shall be not less than the sum of the basic predetermined rate, plus the half time premium on the basic or regular rate plus the required cash in lieu of fringes at the straight time rate. To simplify computation of overtime, it is suggested that the straight time basic rate and cash in lieu of fringes be separately stated in the hourly rate column, thus $3.25/.40. In addition, the contractor shall check paragraph 4(b) of the statement to indicate that he is paying fringe benefits in cash directly to his employees. Any exceptions shall be noted in Section 4(c).

Use of Section 4(c), Exceptions

Any contractor who is making payment to approved plans, funds, or programs in amounts less than the wage determination requires is obliged to pay the deficinecy directly to the employees as cash in lieu of fringes. Any exceptions to Section 4(a) or 4(b), whichever the contractor may check, shall be entered in Section 4(c). Enter in the Exception column the craft, and enter in the Explanation column the hourly amount paid the employees as cash in lieu of fringes, and the hourly amount paid to plans, funds, or programs as fringes.

FHA FORM NO. 2554
Rev. 10/69

SUPPLEMENTARY CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

ARTICLE 1 - LABOR STANDARDS

A. (1) All mechanics and laborers employed in the construction of the project shall be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account, except such payroll deductions as are permitted by Regulations of the Secretary of Labor. Part 3 (29 CFR Part 3), the full amounts due at the time of payment computed at wage rates not less than those contained in the applicable wage determination decision of the Secretary of Labor, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics; and the applicable wage determination decision shall be posted by the Contractor at the site of the work in a prominent place where it can be easily seen by the workers. For the purpose of this clause, contributions made or costs reasonably anticipated under section 1 (b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to 29 CFR 5.5 (aX1)(iv), which provides substantially as follows:

If the contractor does not make payments to a trustee or other third person, he may consider as
part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in
providing benefits under a plan or program of a type expressly listed in the wage determination
decision of the Secretary of Labor which is a part of this contract: Provided, however, The
Secretary of Labor has found, upon the written request of the contractor, that the applicable
standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the con-
tractor to set aside in a separate account assets for the meeting of obligations under the plan
or program.

Also for the purpose of this clause, regular contributions made or costs incurred for more than a weekly period under plans, funds, or programs, but covering the particular weekly period, are deemed to be constructively made or incurred during such weekly period.

(2) Whenever the minimum wage rate prescribed in the applicable wage determination decision for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly wage rate and the Contractor is obligated to pay the cash equivalent of such a fringe benefit, if the interested parties cannot agree upon the cash equivalent, the question, accompanied by the recommendation of the FHA, shall be referred to the Secretary of Labor for determination.

(3) The term "applicable wage determination decision" as used herein means the unexpired wage decision, in effect at the time construction starts, specifying the wage rates prevailing in the locality in which the work is to be performed for the corresponding classes of laborers and mechanics employed on construction of a similar character, as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5), including effective changes in the decision. Wage decision changes, such as modifications and supersedeas decisions, shall be effective unless, prior to their issuance by the Secretary of Labor, construction of the project has been started or the project mortgage has been initially endorsed for insurance.

(4) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified or reclassified comformably to the wage determination, and a report of the action taken shall be sent by the FHA to the Secretary of Labor. In the event the interested parties cannot agree on the proper classification or reclassification of a particular class of laborers or mechanics to be used, the question, accompanied by the recommendation of the FHA, shall be referred to the Secretary of Labor for final determination.

B. (1) Payrolls and basic records relating thereto shall be maintained during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics employed in the construction of the project. The payrolls shall contain the name, address and Social Security number of each such

employee, his correct classification (including the wage-rate step of each apprentice), rates of pay (including rates of contributions or costs anticipated of the types described in section 1 (b)(2) of the Davis-Bacon Act), daily and weekly number of hours worked, gross wages earned, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1 (b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show t a the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.

(2) A laborer or mechanic who performs work on the project in more than one classification within the same workweek shall be classified and paid at the highest wage rate applicable to any of the work which he performs unless the following requirements are met:

(a) Accurate daily time records shall be maintained. These records must show the time worked in each classification and the rate of pay for each classification, and must be signed by the

workman.

(b) The payroll shall show the hours worked in each classification and the wage rate paid for each classification.

(c) The payroll shall be signed by the workman, or a signed copy of the daily time records shall be attached thereto.

(3) (a) A copy of all payrolls, including those of all subcontractors, shall be submitted weekly to the FHA by the prime contractor. The copy of each payroll shall be accompanied by a "Weekly Statement of Compliance" in the form specified in Regulations of the Secretary of Labor, Part 3 (29 CFR Part 3). The statement shall be executed by the employer (owner, partner or corporate officer) or, if a copy of a current letter of authorization signed by the employer is furnished to the FHA, the statement may be signed by the employee authorized in said letter to supervise the payment of the employees.

(b) A copy of any finding by the Secretary of Labor under 29 CFR 5.5 (âX1)(iv) shall be furnished to the FHA by the Contractor with the first payroll submitted following receipt of the finding.

(4) The Contractor and all subcontractors shall make the records required under the labor standards clauses of the contract available for inspection by authorized representatives of the FHA and the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. The subcontractors shall also make such records available to, and permit such interviews by, authorized representatives of the Contractor.

C. Apprentices will be permitted to work as such only when they are registered, individually, under a bona fide apprenticeship program registered with a state apprenticeship agency which is recognized by the Bureau of Apprenticeship and Training, United States Department of Labor; or, if no such recognized agency exists in a state, under a program registered with the Bureau of Apprenticeship and Training, United States Department of Labor. The allowable ratio of apprentices to journeymen in any craft classification shall not be greater than the ratio permitted to the contractor as to his entire work force under the registered program. Any employee listed on a payroll at an apprentice wage rate, who is not registered as above, shall be paid the wage rate determined by the Secretary of Labor for the classification of work he actually performed.