CABL Forum - Re: Davis Beacon Act

llowman.. Most of the information you have provided is correct and accurate info I would like to add a little info. I am a federal contractor as well as a prime contractor for several mso’s . This is an issue that will be effecting a lot of fiber build projects over the next three years. And I know of several projects that are ongoing that are not in compliance. The government has provided loans and grants for the upgrade and expansion of cable and telephone networks across the country they range from a few hundred thousand dollars to 30 and 40 million dollar grants and loans and more.

To find out who is getting these grants you can go to the governments broadband web site for more info. I am a prime on one such project. The Davis Bacon act states that any project that is federally funded through a loan or grant or insured through the federal government must pay prevailing wage to all employees preforming work at the (site of work) where the actual construction takes place. Also this payroll MUST be made WEEKLY not thirty days out not production not bi weekly. Also you cannot make deductions from this payroll for retain age, tools or other deductions such deductions are in violation of the anti-kickback laws and can result in criminal charges.

This is a big change for our industry (being paid on time and not getting screwed). As an employer or prime contractor you are required to do a certified payroll report to the federal government weekly reporting all payroll for each employee associated with the project and site of work. If an employee works of the site of work and other projects they must be broken out on the report.

With regard to fringes, fringes can be of set by fringe benefits that an employer gives to their employees like paid time off insurances (other than what is required by the government i.e. workers comp). Use of the company truck is not a good idea as a fringe however because if the employee is using the truck to and from work you are required to pay them as a driver for this time. If you do not provide fringes this can be paid to the employee in its cash value and is included in the payroll report.

You can Google certified payroll report to get more info on how to do this report.

Does this mean we can no longer have subs? No you can use subcontractors but you as the prime are responsible for making sure that all subs are in compliance and you will need to get there certified payroll reports and submit them with yours. Also if the break any laws you can be held responsible as well.

This will have a big impact on pricing in our industry for these projects and you need to be aware of this win bidding work or doing work on these projects. Yes it is correct that the pricing is different for the same job functions from state to state they can also vary by city, state and township. You can look op the wage determinations on the DOL web site.

For my project a driver and ground hand make 22.50 per hr. with fringes and a lineman makes 29.25 per hr. with fringes. They are paid every Friday and only taxes are deducted. A certified payroll report is completed each week and submitted for the project. The MSO has chosen to have us do all the work so that they don’t have to change their employee pay scale and biweekly pay schedules. In my area I am also required to give one paid holiday per year.

It is important to find out all of the rules and be in compliance. What can happen if you don’t?

As an employer you can face civil and criminal penalties. Your assets and accounts can be frozen and your customers project will be shut down and there funds frozen until investigations are complete and all employees at the site of work are paid. Your customers grant can also be revoked for noncompliance. Bottom line it is the MSO and Prime contractors responsibility to make sure everyone is in compliance and that all workers are paid a fair wage as determined by the government weekly without deductions other that taxes.

I know of three projects that are not in compliance, the grants require that the customer spend a certain amount of their own matching funds and they are trying to do this with low pricing and crews being paid 30 to 90 days out with retain age being withheld because it is their money. The law states that the entire project including matched funds comply with the law. The government is auditing these projects so there will be some companies in trouble down the road once they get caught and they will.

As a lineman ground hand, splicer or other persons doing work at the site of work on these projects you need to be aware of if your project is federally funded and that you are being paid correctly. If you are in not sure contact me and I can help you find out.

This should have a big impact on our industry and should turn around the trend of low wages and slow pay checks. I look forward to the next few years of work.

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Re: Davis Beacon Act