Cancellation, termination, or suspension of the contract, in whole or in part.
The Contractor should be notified of the deficiency/violation and given a reasonable (preferably a mutually agreed upon) period of time for corrective action. If corrective action has not been initiated within the specified time period, or it appears that the Contractor has not exerted a good faith effort to comply, sanctions will be imposed.
General. The Contractor must conform to labor provisions which are included
in all Federal Aid contracts, except negotiated County projects. The Resident Engineer and the Resident Engineer's personnel should be aware of the following information in order to successfully investigate labor compliance problems and to advise the Contractor appropriately:
(b) Contractor's Payroll. Federal Highway Administration regulations provide that mechanics and laborers on projects shall not be paid less than the prevailing wage rates of the locality. Therefore, all laborers and mechanics working on a project must be shown on a Prime Contractor's or acknowledged Subcontractor's payroll. To implement
this, the U.S. Department Aid contract on which Determination is included
in the contract documents and is as binding as any construction
specification. The Determination lists minimum hourly rate to be paid to each. Federal law and a contractual obligation.
payroll titles or payment of these
classifications and the rates is both a matter of
The U.S. Department of Labor has determined that survey crew positions are exempt from the requirements of FHWA-1273 since they are not classified as either laborers or mechanics. Therefore, it is not necessary that they be shown on the Contractor's required payroll submissions.
On all Federal Aid contracts, the Contractor must submit one copy of the Weekly Payroll, along with a signed "Statement of Compliance" for each week in which any contract work is performed, as required by FHWA-1273 "Required Contract Provisions Federal Aid Construction Contracts", Part V. Authorized Subcontractors must also provide a Weekly Payroll and "Statement of Compliance".
It is not required that contractors and subcontractors submit payrolls or
signed "Statements of Compliance" for those weeks in which no contract work is performed by them. It is required, however, that the Resident Engineer receive a payroll for each week in which a Prime contractor and each subcontractor works on a project. When there is a “gap” in the payrolls submitted by a Prime contractor or subcontractor, the Resident Engineer must verify that a contractor did not work on a project or require a
payroll if records show work was performed.
Regarding acceptable payroll submittals for employees “leased” by contractors and subcontractors, refer to Figure 107-3A.