Wayne State University

Warrior strong
Login
Search

Policies and Procedures

APPM

2.10 WSU Wage Requirements for Construction and Construction-like Work (revised 7-26-2024)

2.10.1 

Administrative Responsibility:   Associate Vice President for Business Services / Procurement

PURPOSE

This Policy is provided to outline the Wayne State University Wage Rate requirements as listed in University Policy 18-02.

SCOPE

This Policy applies to all construction and construction-like work performed for the University or on University property.  Examples include but are not limited to new construction, renovation, repair, demolition, painting, installation of equipment (e.g. audio visual) where said equipment is affixed to the building infrastructure, and furniture installation where a construction trade (e.g. electrical or carpenter trades) are used.

DEFINITIONS

Applicable Michigan Law

Any law in effect in the State of Michigan pertaining to prevailing wages or otherwise applicable to the subject matter of this Policy, including but not limited to the Prevailing Wages on State Projects Act (MCL 408.1101 et seq).

Certified Payroll

A certified document verifying the wage and benefits rates for all employees of the contractor and subcontractors for each payroll period for work performed on a University Project and confirming such wage and benefits rates meet or exceed the applicable WSU Wage Rate.  If University does not provide a template to use, U.S. Department of Labor Form WH 347 (http://www.dol.gov/whd/forms/wh347.pdf) may be used.

Davis-Bacon Act Wage Determination  

A set of wages and fringe benefits that the U.S. Department of Labor has ruled to be prevailing for a given labor category in a given locality.

Full Conditional Waiver

A signed statement that waives any and all lien rights provided the amount listed in the statement is paid.  If University does not provide a template to use, any format that complies with the MCLA requirements for a full conditional waiver may be utilized.

LEO

The State of Michigan Department of Labor and Economic Opportunity.

MCLA

Michigan Construction Lien Act, MCL 570.1101 et seq.

Partial Conditional Waiver

A signed statement that waives a partial set of lien rights provided the amount listed in the statement is paid due.  If University does not provide a template to use, any format that complies with the MCLA requirements for a full conditional waiver may be utilized.  If University does not provide a template to use, any format that complies with the MCLA for a partial conditional waiver may be used.

Pay Application

A document used to request payment, used primarily in the construction industry.  A pay application serves the same purpose as a supplier invoice as a request for payment to the University

Sworn Statement

A sworn document listing each subcontractor, supplier, mechanic, and laborer, with whom the applicable contractor has contracted for a University Project and for whom payment (including but not limited to wages or fringe benefits and withholdings) is due but unpaid as of the date of the document, including the amount(s) unpaid.  If University does not provide a template to use, any format that complies with the MCLA for a sworn statement may be used.

University Project

All construction and construction-like work performed for the University or on University property.  Examples include but are not limited to new construction, renovation, repair, demolition, painting, installation of equipment (e.g. audio visual) where said equipment is affixed to the building infrastructure, and furniture installation where a construction trade (e.g. electrical or carpenter trades) are used.

U.S. Department of Labor

The United States Department of Labor, overseen by a federally appointed Secretary of Labor

WSU Wage Rate:

The minimum compensation (including both wage and fringe benefits) that a laborer or mechanic must receive from their employer when performing work on University Projects.  This rate is not offset by the employer’s contribution to an employee’s benefits or worker’s compensation.  The wage and fringe benefit rates shall be those prevailing in the locality in which the work is to be performed, as determined by LEO in accordance with Applicable Michigan law, or in the absence of a determination by LEO or absence of or inapplicability of Applicable Michigan Law, by Davis-Bacon Act Wage Determinations.

POLICY

Wayne State University requires all contractors, including subcontractors, who provide labor on University Projects to compensate at a rate no less than WSU Wage Rates.

The rates  to be paid to each class of laborers and mechanics by each contractor and subcontractor(s) (if any) on a University Project shall be not less than the WSU Wage Rate.  Individually contracted labor commonly referred to as “1099 Workers” and subcontractors using 1099 workers are not acceptable for work on any University Projects.  

If Applicable Michigan Law applies to a University Project, then the prevailing rates of wages and fringe benefits for all classes of laborers and mechanics involved in the University Project must be requested for each University Project from LEO.  The schedules of rates provided by LEO in accordance with Applicable Michigan Law shall constitute the WSU Wage Rate for that specific University Project. If a contract for the University Project is not awarded or construction undertaken on the University Project within ninety (90) days of the date of LEO’s determination of rates, then the University must request a redetermination from LEO before the contract is awarded.  If Applicable Michigan Law does not exist or is not applicable to a specific University Project, then the WSU Wage Rate for such University Project shall be the wage and fringe benefit rates prevailing in the locality in which the work is to be performed as set forth in the applicable Davis-Bacon Act wage determinations published by the U.S. Department of Labor at https://wdolhome.sam.gov/

Certified Payroll must be provided for each of the contractor’s or subcontractor’s payroll periods for work performed on any University Project.  Certified Payroll must accompany Pay Applications and be fully reconciled with the final Pay Application.  Failure to provide Certified Payroll and the required accompanying forms and information will constitute a material breach of contract, and applicable Pay Applications will be returned unpaid and remain unpaid until satisfactory supporting documents are provided.

Additional information can be found on the University Procurement & Strategic Sourcing’s web site at the following URL address: https://procurement.wayne.edu/vendors/wage-rates

PROCEDURE

Bids or proposals for University Projects shall contain a WSU Wage Rate clause outlining a contractor’s responsibilities under University policy.  Each bid solicitation shall include reference to the University Project specific WSU Wage Rate that contractors can use when preparing their bids.

When compensation is to be paid for a University Project having WSU Wage Rate requirements, the University shall require the following:

  • The contractor shall obtain and keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each laborer and mechanic employed in connection with the University Project, including those employed by its subcontractors.  
  • The contractor shall, and shall require its subcontractors to, keep posted on the construction site, in a conspicuous place, a copy of all WSU Wage Rates prescribed for the University Project and shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each laborer and mechanic employed by it in connection with the University Project. This record shall be available for reasonable inspection by the University or LEO.
  • The contractor shall submit a completed Certified Payroll document verifying and confirming the wage and benefits rates for all employees and subcontractors for each payroll period for work performed on the University Project and that such rates meet or exceed the WSU Wage Rate requirements.  
  • A properly executed Sworn Statement is required from all tiers of contractors, subcontractors, and suppliers which provide services or product of $10,000.00 or greater.  Sworn Statements must accompany Pay Applications. All listed parties on a Sworn Statement and/or in a Pay Application must submit Partial Conditional Waivers or Full Conditional Waivers, as applicable, for the amounts invoiced on the Pay Application and/or included in the Sworn Statement. 
  • A contractor shall not and shall require its subcontractors to not, discharge, discipline, retaliate against, or otherwise discriminate against a laborer or mechanic, or threaten to do any of these things, because the laborer or mechanic reported or was about to report a violation or suspected violation of Applicable Michigan Law.
  • The contractor shall, and shall require its subcontractors to, comply with all requirements of any law applicable to the WSU Wage Rate
     

If a contractor or subcontractor on a University Project fails to pay the applicable WSU Wage Rates and does not cure such failure within ten (10) days after notice to do so by the University (note that in the case of a failure to pay by a subcontractor, the University is only required to provide such notice to the contractor), the University shall have the right, at its option, to do any or all of the following:

  • Withhold a portion of payments due the contractor as may be considered necessary by the University to pay laborers and mechanics the difference between the applicable WSU Wage Rates and the actual wages and fringe benefits paid.
  • Terminate the contract for the University Project and proceed to complete the WSU Project under a separate agreement with another contractor, in which case the terminated contractor and its sureties shall be liable to the University for any excess costs incurred by the University.
  • Propose to the Associate Vice President for Business Services / Procurement that the contractor be considered for debarment in accordance with the University’s Debarment Policy, found on our website at https://policies.wayne.edu/appm/2-8-debarment-policy-on-non-responsible-vendor-in-procurement-transactions

APPENDICES

  1. University Policy 2018-02 Wayne State University Wage Rate Requirements  
  2. Prevailing Wages on State Projects Act (MCL 408.1101 et seq)  https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-Act-10-of-2023  
  3. State of Michigan – Department of Labor & Economic Opportunity - https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/prevailing-wage 
  4. Wage Determinations OnLine.Gov - https://sam.gov/content/wage-determinations  
  5. Selecting DBA Wage Determinations https://sam.gov/search?index=dbra 
  6. Department of Labor Wage and Hour Website  https://wdolhome.sam.gov/  

RELATED UNIVERSITY/BOARD POLICIES

  1. University Policy 2018-02 Wayne State University Wage Rate Requirements

Effective Date: 10/1/2018

Revised Date: 7/26/2024

Reviewed Date: 4/05/2024

To be reviewed, at minimum, every three years and/or revised as needed by:  Associate Vice President for Business Services / Procurement

Next Review By Date: 4.05/2027

SUPERSEDES POLICY

  1. N / A

HISTORICAL DATES

10/01/2018