of the wages required by the contract, HUD or its designee may,
<br />after written notice to the contractor, sponsor, applicant, or owner,
<br />take such action as may be necessary to cause the suspension
<br />of any further payment, advance, or guarantee of funds until such
<br />violations have ceased. HUD or its designee may, after written
<br />notice to the contractor, disburse such amounts withheld for and
<br />on account of the contractor or subcontractor to the respective
<br />employees to whom they are due. The Comptroller General shall
<br />make such disbursements in the case of direct Davis-Bacon Act
<br />contracts.
<br />3. (i) Payrolls and basic records. Payrolls and basic records
<br />relating thereto shall be maintained by the contractor during the
<br />course of the work preserved for a period of three years thereaf-
<br />ter for all laborers and mechanics working at the site of the work.
<br />Such records shall contain the name, address, and social secu-
<br />rity number of each such worker, his or her correct classification,
<br />hourly rates of wages paid (including rates of contributions or costs
<br />anticipated for bona fide fringe benefits or cash equivalents thereof
<br />of the types described in Section I(b)(2)(B) of the Davis-bacon
<br />Act), daily and weekly number of hours worked, deductions made
<br />and actual wages paid. Whenever the Secretary of Labor has
<br />found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or
<br />mechanic include the amount of any costs reasonably anticipated
<br />in providing benefits under a plan or program described in Sec-
<br />tion I(b)(2)(B) of the Davis-Bacon Act, the contractor shall main-
<br />tain records which show that the commitment to provide such
<br />benefits is enforceable, that the plan or program is financially re-
<br />sponsible, and that the plan or program has been communicated
<br />in writing to the laborers or mechanics affected, and records which
<br />show the costs anticipated or the actual cost incurred in providing
<br />such benefits. Contractors employing apprentices or trainees
<br />under approved programs shall maintain written evidence of the
<br />registration of apprenticeship programs and certification of trainee
<br />programs, the registration of the apprentices and trainees, and
<br />the ratios and wage rates prescribed in the applicable programs.
<br />(Approved by the Office of Management and Budget under OMB
<br />Control Numbers 1215-0140 and 1215-0017.)
<br />(ii) (a) The contractor shall submit weekly for each week in which
<br />any contract work is performed a copy of all payrolls to HUD or its
<br />designee if the agency is a party to the contract, but if the agency
<br />is not such a party, the contractor will submit the payrolls to the
<br />applicant sponsor, or owner, as the case may be, for transmission
<br />to HUD or its designee. The payrolls submitted shall set out ac-
<br />curately and completely all of the information required to be main-
<br />tained under 29 CFR 5.5(a)(3)(i). This information may be submit-
<br />ted in any form desired. Optional Form WH-347 is available for
<br />this purpose and may be purchased from the Superintendent of
<br />Documents (Federal Stock Number 029-005-00014-1), U.S. Gov-
<br />ernment Printing Office, Washington, DC 20402. The prime con-
<br />tractor is responsible for the submission of copies of payrolls by
<br />all subcontractors. (Approved by the Office of Management and
<br />Budget under OMB Control Number 1215-0149.)
<br />(b) Each payroll submitted shall be accompanied by a "State-
<br />ment of Compliance," signed by the contractor or subcontractor or
<br />his or her agent who pays or supervises the payment of the per-
<br />sons employed under the contract and shall certify the following:
<br />(1) That the payroll for the payroll period contains the information
<br />required to be maintained under 29 CFR 5.5 (a)(3)(i) and that
<br />such information is correct and complete;
<br />(2) That each laborer or mechanic (including each helper, ap-
<br />prentice, and trainee) employed on the contract during the payroll
<br />period has been paid the full weekly wages earned, without re-
<br />bate, either directly or indirectly, and that no deductions have been
<br />made either directly or indirectly from the full wages earned, other
<br />than permissible deductions as set forth in 29 CFR Part 3;
<br />(3) That each laborer or mechanic has been paid not less than
<br />the applicable wage rates and fringe benefits or cash equivalents
<br />for the classification of work performed, as specified in the appli-
<br />cable wage determination incorporated into the contract.
<br />(c) The weekly submission of a properly executed certification
<br />set forth on the reverse side of Optional Form WH-347 shall sat-
<br />isfy the requirement for submission of the "Statement of Compli-
<br />ance" required by subparagraph A.3.(ii)(b).
<br />(d) The falsification of any of the above certifications may subject
<br />the contractor or subcontractor to civil or criminal prosecution
<br />under Section 1001 of Title 18 and Section 231 of Title 31 of the
<br />United States Code.
<br />(iii) The contractor or subcontractor shall make the records re-
<br />quired under subparagraph A.3.(i) available for inspection, copy-
<br />ing, or transcription by authorized representatives of HUD or its
<br />designee or the Department of Labor, and shall permit such rep-
<br />resentatives to interview employees during working hours on the
<br />job. If the contractor or subcontractor fails to submit the required
<br />records or to make them available, HUD or its designee may, after
<br />written notice to the contractor, sponsor, applicant or owner, take
<br />such action as may be necessary to cause the suspension of any
<br />further payment, advance, or guarantee of funds. Furthermore,
<br />failure to submit the required records upon request or to make
<br />such records available may be grounds for debarment action pur-
<br />suant to 29 CFR 5.12.
<br />4. Apprentices and Trainees.
<br />(i) Apprentices. Apprentices will be permitted to work at less
<br />than the predetermined rate for the work they performed when
<br />they are employed pursuant to and individually registered in a
<br />bona fide apprenticeship program registered with the U.S. De-
<br />partment of Labor, Employment and Training Administration, Of-
<br />fice of Apprenticeship Training, Employer and Labor Services, or
<br />with a State Apprenticeship Agency recognized by the Office, or if
<br />a person is employed in his or her first 90 days of probationary
<br />employment as an apprentice in such an apprenticeship program,
<br />who is not individually registered in the program, but who has
<br />been certified by the Office of Apprenticeship Training, Employer
<br />and Labor Services or a State Apprenticeship Agency (where
<br />appropriate) to be eligible for probationary employment as an
<br />apprentice. The allowable ratio of apprentices to journeymen on
<br />the job site in any craft classification shall not be greater than the
<br />ratio permitted to the contractor as to the entire work force under
<br />the registered program. Any worker listed on a payroll at an ap-
<br />prentice wage rate, who is not registered or otherwise employed
<br />as stated above, shall be paid not less than the applicable wage
<br />rate on the wage determination for the classification of work actu-
<br />ally performed. In addition, any apprentice performing work on
<br />the job site in excess of the ratio permitted under the registered
<br />program shall be paid not less than the applicable wage rate on
<br />the wage determination for the work actually performed. Where a
<br />contractor is performing construction on a project in a locality other
<br />than that in which its program is registered, the ratios and wage
<br />rates (expressed in percentages of the journeyman's hourly rate)
<br />specified in the contractor's or subcontractor's registered program
<br />shall be observed. Every apprentice must be paid at not less
<br />than the rate specified in the registered program for the
<br />apprentice's level of progress, expressed as a percentage of the
<br />form HUD-4010 (07/2003)
<br />Previous edition is obsolete Page 2 of 4 ref. Handbook 1344.1
<br />25H-21
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