|
WHAT'S NEW?
Davis Bacon Regulations- Part 2 of 2
Over 800 pages of regulations with many nuances. Here is our continuing update:
Wage Increases: DOL has determined that for wage determinations which are based on surveys and not union collective bargaining agreements, that the DOL may choose to increase those survey rates (up to 3%) as often as every three years without taking any additional survey. If DOL chooses to do this, they will update the wage rates in www.sam.gov. If the rates have not been updated, then the published rates at www.sam.gov will apply. There will not be any automatic increases on projects which have already been awarded - no matter the length of the project.
Conformances and Contracting Officers: The DOL has expanded the definition of “contracting officer” to include agencies and grant recipients who are not federal employees. The lack of a designated “contracting officer” created many conformances to be rejected or at least delayed until the issue of contracting officer was resolved. HUD for many years had its own conformance form for just this very reason. DOL likes uniformity and anticipated this change will allow SF1444 forms to be used for all conformances.
Fringe Benefits: Not many changes here. Contractors whose contributions are not already being calculated on a per hour basis are still required to amortize or annualize their monthly/quarterly contributions to a per hour rate. Typically this calculation is the monthly premium x 12 (months in a year) ÷ 2080 (work hours in a year). For pension contributions whether made to a union trust or to another ERISA approved plan will continue to be allowed. Individual pension plans, such as the Contractor’s Plan, will need to seek DOL approval for their plans. For contractors who provide vacation and holiday pay directly to workers and do not make the contribution to a third party plan, those benefits will still be allowed so long as there is 1) an enforceable written policy for the benefit; 2) the benefit is nonforfeitable (vacation pay is not forfeited if not used or if the employee leaves employment; and 3) those benefits are amortized/annualized. (Total number of holiday/vacation hours (accrued by the employee for the year) x RRP (the employee’s regular hourly rate of pay that will be received when the vacation or holiday is taken) ÷ 2080 hours (work hours in a year)).
While there are some additional smaller nuances in the new Davis Bacon regulations, CCMI believes we have hit the high points. Watch for CCMI’s updates to our books: What Every Contractor Should Know about Prevailing Wages and the Davis Bacon Handbook for Public Agencies, anticipated at the end of the year.
| 
