Davis-Bacon

Here's yet another example of why Kimberley is so fierce about Davis-Bacon Benefits compliance. CAL Construction, based in Massachussets, has been fined $1.3 million dollars - yes, you read that correctly - for not paying proper Davis-Bacon wages and benefits to employees. And, to add insult to injury, both the company and its owner have been debarred from receiving federal contracts for 3 years!

When you are working on a Davis-Bacon or Prevailing Wage project, there are a few things you need to know in order to properly credit your certified payroll report against your company’s prevailing wage fringe obligations; and one of the least understood is annualization.

With so much paperwork to be completed on California prevailing wage and Federal Davis-Bacon projects, the acronyms for the forms - WH-347, California A-1-131, DAS 140, DAS 142, CAC 2 - can become quite confusing as all of them are part of Federal and/or California prevailing wage requirements.

Recently, the state of California assessed a Drywall company $200,000 in back wages to their employees, $25,000 for payroll taxes, $75,000 in civil penalties, $25,000 in restitution and $50,000 for attorney's fees.  Why were they fined?  They were fined, in part, for failing to comply with Prevailing Wage rules.

Anyone involved in prevailing wage contracting knows that there is no better example of Government intervention in free markets than the Davis-Bacon and Related Acts.

On April 6, 2010, President Obama recorded a Memorandum in the Federal Register. Directed to the Heads of Executive Departments and Agencies, the stated goal of the Memorandum is to improve transparency while also reducing waste, fraud and abuse in Federal contracting. You can read the Memorandum in its entity by clicking this link: Federal Register, Combating Noncompliance with Recovery Act Reporting Requirements