2.10 Prevailing Wage Requirements for Construction and Construction-like Work

2.10.1 

Administrative Responsibility:   Associate Vice President for Business Services / Procurement

PURPOSE

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

SCOPE

This Policy applies to all construction and construction-like work performed on campus.  Examples include new construction, construction renovation, installation audio visual or similar equipment where said equipment is affixed to the building infrastructure, and furniture installation where electrical or carpenter trades are used.

DEFINITIONS

Department of Labor

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

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

Prevailing Wage Rate:

The minimum compensation that a laborer or mechanic should receive from their employer when performing work on campus.  This rate is not offset by the employer's contribution to an employee's benefits or workman's compensation.

Wage Determination: 

The term used in the Davis-Bacon Act to describe prevailing wage rates

POLICY

Wayne State University requires all project contractors, including subcontractors, who provide labor on University projects to compensate at a rate no less than prevailing wage rates.

The rates of wages and fringe benefits to be paid to each class of laborers and mechanics by each VENDOR and subcontractor(s)(if any) shall be not less than the wage and fringe benefit rates prevailing in Wayne County, Michigan, as determined by the United States Secretary of Labor.  Individually contracted labor commonly referred to as "1099 Workers" and subcontractors using 1099 workers are not acceptable for work on any of Wayne State's properties.  Rates for all counties are available at https://www.wdol.gov/, and Procurement will post the schedules quarterly that pertain to Wayne County on its website at https://procurement.wayne.edu/vendors/wage-rates.

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 will constitute a material breach of contract, and 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

Construction Bids and other Bids or Proposals for work that includes construction shall contain a Prevailing Wage clause outlining a contractor's responsibilities under University policy.  Each bid solicitation shall include reference to the most current prevailing wage schedule that contractors can use when preparing their bids.

When compensation will be paid under prevailing wage 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 this contract. 
  • The contractor shall submit a completed certified payroll document [U.S. Department of Labor Form WH 347] verifying and confirming the prevailing wage and benefits rates for all employees and subcontractors for each payroll period for work performed on this project.  The certified payroll form can be downloaded from the Department of Labor website at http://www.dol.gov/whd/forms/wh347.pdf
  • A properly executed sworn statement is required from all tiers of contractors, sub-contractors and suppliers which provide services or product of $10,000.00 or greater.  Sworn statements must accompany applications for payment. All listed parties on a sworn statement as a subcontractor must submit Partial or Full Conditional Waivers for the amounts invoiced on the payment application. A copy of the acceptable WSU Sworn Statement and Waiver will be provided to the awarded contractor.

If the VENDOR or subcontractor fails to pay the prevailing rates of wages and fringe benefits and does not cure such failure within 10 days after notice to do so by the UNIVERSITY, the UNIVERSITY shall have the right, at its option, to do any or all of the following:

  • Withhold a portion of payments due the VENDOR as may be considered necessary by the UNIVERSITY to pay laborers and mechanics the difference between the rates of wages and fringe benefits required by this contract and the actual wages and fringe benefits paid.
  • Terminate the contract and proceed to complete the contract by separate agreement with another vendor or otherwise, in which case the VENDOR and its sureties shall be liable to the UNIVERSITY for any excess costs incurred by the UNIVERSITY.
  • Propose to the Director of Purchasing that the Vendor 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 – Prevailing Wage Rate Requirements
  2. Wage Determinations OnLine.Gov - https://www.wdol.gov/
  3. Selecting DBA Wage Determinations – https://www.wdol.gov/dba.aspx
  4. Department of Labor Wage and Hour Website – http://www.dol.gov/whd/

RELATED UNIVERSITY/BOARD POLICIES

  1. University Policy 2018-02 – Prevailing Wage Rate Requirements

Effective Date: 10/1/2018

Revised Date: 10/1/2018

Reviewed Date: 10/1/2018

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: 10/1/2021

SUPERSEDES POLICY

  1. N / A

HISTORICAL DATES

N / A