CM 2.20

2.20 CONTRACT ADMINISTRATION

This section provides instructions and guidance to contractors and project engineers for administration of construction contracts. Instructions include information on required reports or forms, equal employment opportunity, wage reports, training programs, minority recruitment, and subcontracting. Copies of Iowa Department of Transportation forms referred to in the Construction Manual 2.20 are included in Appendix 2 and can be copied as needed. Electronic versions (Word, Excel, or Adobe Reader format) of the forms are also available on the DOT’s website at: https://iowadot.seamlessdocs.com/sc/

Forms & Reports ‑ Prepared by Contractor
Form No.	Title	Reference Section
102116	Certification of DBE Accomplishment	2.25
518002	Certification of Subcontractor Payment	2.25
830176	Certified Transcript of Labor Payroll/Statement of Compliance	2.24
830231	Subcontract Request	2.25
830215	Stormwater Co-Permittee Certification Statement	10.33


Forms & Reports ‑ Initiated by Contractor, Prepared by Project Engineer
830230	Plan Quantity Agreement	2.27

2.21 OCCUPATIONAL SAFETY AND HEALTH

Occupational Safety and Health Act (OSHA) regulations (federal and state) apply to all construction projects. (Federal OSHA regulations are codified in 29 CFR, Sections 1910 and 1926.) Contractors are responsible for compliance with OSHA regulations and shall maintain a safe work site. Therefore, contractors and their employees must be familiar with the health and safety requirements of the act.

n Article 1102.19, E, 5 of the Standard Specifications require that a poster entitled Job Safety and Health” Form 70-8025 be displayed in a prominent place at all times. Contractors can obtain OSHA forms and posters from:

Iowa Workforce Development

https://workforce.iowa.gov/employers/business-resources/employer-posters

Occupational Safety and Health Administration

https://www.osha.gov/publications

2.22 EQUAL EMPLOYMENT OPPORTUNITY (EEO)

A. Contractor's Responsibility

Contractor’s and their staff who are responsible for the hiring, supervising, promoting, and discharging of employees shall be knowledgeable of the Contractor’s EEO/AA Policy. The contractor’s EEO/AA efforts will be reviewed on a company-wide basis rather than on project specific efforts.

1. Contractor’s EEO Policy

Each contractor shall have an EEO/AA policy approved by the Civil Rights Bureau, prior to awarding a contract or approving subcontracts which are $10,000 or greater. The policy is to be reviewed and resubmitted each year.

The policy is to include:

· General operating statement

· Designation of EEO officer

· Definition of EEO & AA

· Company’s recruitment policy

· Certification that the company does not possess segregated facilities

· Plan for employee training and promotion – If Contractor does not have a training program, the EEO/AA Policy shall state that there is no plan.

The contractor shall conduct periodic meetings with supervisory and personnel staff at least every 6 months to review and discuss the company’s policy. All new supervisory and personnel staff shall be instructed of the policy within 30 days of being hired.

2. Postings

The following are required to be posted on the project bulletin board:

· Subcontractor Authorization and EEO Poster Notice provided by the Iowa DOT Contracts and Specifications Bureau that lists the name, address and phone number of the Contractor’s and all subcontractors’ EEO/AA officer. This form is considered the Department’s written authorization of subcontractors for the contract

· “Know Your Rights: Workplace Discrimination is Illegal*

· Form FHWA 1022 – Notice Concerning False Statements and Records

· If predetermined wage requirements apply:

- Current Pre-Determined Wage Rate Decision

- Form WH-1321 Employee Rights Under the Davis-Bacon Act *

· Form 70-8025 – Job Safety and Health

· WHD-1420 – Your Rights Under the Family Medical Leave Act of 1993

· WHD-1462 – Employee Polygraph Protection Act

· Pay Transparency Nondiscrimination Provision

· USERRA Poster, “Your Rights Under USERRA”

* The Spanish version of these posters are recommended where Spanish speaking employees or applicants are likely to occur.

Electronic files of the posters are available for printing by the contractor on the Civil Rights website at: https://iowadot.gov/civilrights/Documents-forms-and-reports

All required site postings shall be in a location that is easily accessible to all employees. Postings may be fastened to a bulletin board, tool shed, or job office/trailer and protected from weather by glass or clear plastic. Postings that become soiled, faded, or otherwise illegible should be replaced. More than one posting may be necessary if there are multiple locations where workers report for work. Such cases typically occur on complex or long projects involving several different crews and/or subcontractors.

3. Reports and Records

Contractors are required to maintain records to document compliance with EEO/AA requirements for a period of 3 years following completion of the contract.

These records include:

· Number of minority/non-minority/females employed in each classification

· Progress and efforts made in hiring minorities and females

The contractor shall submit the following documents to the Civil Rights Bureau:

· The Company’s EEO/AA Policy annually

· Annual report each July listing the number of minorities/females/non-minorities in each classification in July (FHWA-1391)

· When requested, documentation of periodic meetings, inspections, and investigations

Contractors who have not complied with the specification may be required to submit a plan for corrective action to the Civil Rights Bureau. Failure to correct the deficiencies may result in suspension of the contractor’s bidding privileges for a period up to one year.

B. Project Engineer’s Responsibility

While responsibility for complying with EEO requirements is solely the contractor’s, project engineers’ responsibility on contracts include:

1. Subcontract Request

Contractors submit subcontract requests to the Contracts and Specifications Bureau with the signed contracts. For additional requests or modifications to existing requests, contractors are to submit the forms to the project engineer. The project engineer should confirm that the subcontractor has an approved EEO/AA policy prior to approving the subcontract. The project engineer forwards the form to the Contracts and Specifications Bureau so that the information can be entered into the Trans*Port database. A list of contractors with approved policies is available from the Civil Rights Bureau website. https://iowadot.gov/civilrights/Documents-forms-and-reports

2. Review of Project Bulletin Boards

Inspection staff are to review contractor’s bulletin board for required notices/posters. Progress payments may be suspended if the appropriate

notices/posters are not displayed on the project site. Work may be suspended for continued noncompliance.

3. “EEO Project Site Inspection/Wage Rate Report” (Form 650170)

After reviewing the project’s bulletin board, the inspector’s findings should be documented on the “Project Engineer’s EEO Project Site Inspection Wage/Rate Report.” This report includes a checklist of the required postings. This report also serves to document the wage-rate interviews of contractor’s employees. A copy of this form can be obtained at: https://iowadot.seamlessdocs.com/sc/ The completed report is to remain in the project engineer’s file.

4. In-depth EEO Inspections

On selected contracts, staff from the Civil Rights Bureau may request that a more detailed EEO interview be conducted. The in-depth interview/report will coincide with EEO reviews of the home office conducted by staff from the Civil Rights Bureau. The Civil Rights Bureau staff will provide their request and instructions to the project engineer at the time of the in-depth review.

2.23 TRAINING PROGRAMS

Requirements for training of contractors’ employees are included in the EEO/AA specification, Article 1102.19. Contractors are required to have a written training and promotion plan when their three-year average of all work contracted (including subcontracted work) with the Department equals or exceeds $5,000,000. The required minimum number of trainees is dependent on the amount of work under contract.

A. Contractor's Responsibility

When required, the written training and promotion program shall include details such as:

· Designated crafts of trainees

Maximum ratio of one trainee to 3 journey-workers (by craft)

· Methods for training and number of hours required for training

· Payment to trainees

Rate of pay for trainees shall be described as a percentage of journey worker’s rate of pay. Trainees’ rate of pay shall be at least the appropriate rate that is specified in their approved training program. The project engineer should verify with the Civil Rights Bureau that the contractor has an approved training program if trainees are being paid less than full Davis-Bacon wage rates.

Individuals enrolled in a training program shall be paid benefits as outlined in Construction Manual 2.24.

After a trainee has completed his/her training program, the trainee's base wage rate shall be increased to the Davis‑Bacon's wage determination for that job classification.

· Records

The contractor shall furnish a copy of the program to each trainee as well as a certification of satisfactory completion. The contractor shall submit an annual training report to the Civil Rights Bureau documenting their training efforts for the year.

2.24 DAVIS-BACON WAGE REQUIREMENTS

"Certified Transcript of Labor Payroll"

A. Regulations

Regulations covering interstate, primary, secondary, and city projects financed in whole or in part with federal funds may require submission of a "Certified Transcript of Labor Payroll" (Form 830176) in accordance with "Required Contracts Provisions" (Form FHWA‑1273). These requirements will be included on the proposal and shall be carefully studied and observed. A copy of Form 830176 is provided at: https://iowadot.seamlessdocs.com/sc/

Davis-Bacon regulations apply to laborers and mechanics employed by the contractor and subcontractors on, adjacent or virtually adjacent to the “Site of the Work”. “Site of the Work” includes the physical location of the work called for in the contract documents. Also included are tool yards, batch plants, borrow pits, etc. provided they are dedicated exclusively to performance of the contract and “provided they are adjacent or virtually adjacent to the site of the work”.

The U.S. Department of Labor has interpreted “adjacent to the Site of Work” to indicate a common boundary, while "virtually adjacent" indicates a small separation between the project and temporary plant site.

Temporary plants, contractor furnished borrows or contractor’s staging yard established for a project would be considered "Site of Work only when the site is:

n adjacent (common boundary between the project and plant site) or

n virtually adjacent (for example: plant site is separated from the project site by a narrow strip of land such as a local road between a project and a plant site)

Chapter 15 of the Department of Labor Field Operations Handbook describes Davis‑Bacon and the Contract Work Hours and Safety Standard Act requirements. A link to Chapter 15 of the DOL Handbook is available at https://www.dol.gov/agencies/whd/field-operations-handbook/Chapter-15.

Project engineers shall refer questions concerning Davis‑Bacon coverage to the Construction and Materials Bureau. The Construction and Materials Bureau will consult with the Contracts and Specifications Bureau so uniform interpretations can be provided.

Occasionally, project engineers receive requests from private sources for copies of certified payroll records. Iowa's "Open Records Law" provides for the release of all information except social security numbers. Requests for payroll records must be submitted in writing. Copies of these written requests are to be provided by registered mail to the contractor that initially submitted or will submit certified payrolls. If a request for subcontractor information is received, a copy of the request will also be sent to the prime contractor. Requests are to be acknowledged in writing, confirming that information is available and indicating that social security numbers will be withheld. Payroll records must not be released until fourteen calendar days after a copy of the request is received by the contractor. This allows contractors an opportunity to obtain a court injunction to stop the release if they believed the information could affect the competitive bidding process. These procedures are to be followed for requests received from outside sources, such as labor unions.

Adherence to these procedures during investigations by the Department of Labor or FHWA is not required. Another exception has been made for representatives of the Iowa Labor Management Work Preservation Fund, who may obtain project payrolls for a given week without a written request provided it does not cause undue inconvenience for the project engineer's office (Iowa Administrative Code-761 IAC 4.9(17) d)

When contract provisions state that a certified transcript of weekly payroll is required, the contractor shall submit to the project engineer one copy of Form 830176 or an alternate form which contains the information as required in FHWA-1273, Section IV 3.

Project engineers must also ensure "Statement of Compliance" information is furnished with the payrolls and that the prime contractor has signed all payrolls received from subcontractors.

If an individual works on more than one project during a period, payroll information shall include adequate data to verify correct computation and payment of fringe benefits.

B. Postings

A copy of wage rates must be posted in a location easily accessible and visible to all employees. It should be attached or adjacent to posted "Wage Rate Information Federal‑Aid Highway Project" (Form WH-1321). Supplemental wage rates requested and approved shall also be posted.

C. Davis‑Bacon Wage Requirements for Independent Truckers

Federal‑aid construction contracts may include "Required Contract Provisions" (FHWA‑1273) which govern Davis‑Bacon wage rates and fringe benefits for the project. Therefore, all employees of a prime contractor or subcontractor hauling on a Davis‑Bacon covered project must be paid in accordance with FHWA-1273 requirements.

When an independent trucking firm is engaged to haul materials to a Davis‑Bacon covered site, Davis‑Bacon coverage of drivers depends on the status of the material supply source. Department of Labor has consistently held that the following are construction activities covered by Davis‑Bacon provisions [Code of Federal Regulations, 29 CFR, Section 5.2(j)(1) & (2)]:

n Employees working in situations where materials are produced from an operation, plant, or pit that is opened or installed “virtually adjacent” to a construction site for the exclusive purpose, or nearly so, of fulfilling contract material requirements, and

n Truck drivers who haul and deliver materials from those locations to the job site. The only exception is for bona fide owner‑operators physically driving their own trucks. This exception does not extend to other drivers of independent trucks.

Truckers hauling from a commercial source are not covered by Davis‑Bacon requirements except for the time spent on the project. This ruling applies to all trucking, whether it be by an employee of the contractor, subcontractor, or an independent material supplier or transporter. A trucker employed by a prime contractor/subcontractor may be covered when hauling from portable plant to project and not covered if hauling from commercial quarry to portable plant site. Commercial sources are not considered part of the "site of work." This includes permanent plants and quarries that are not established for a specific project.

Portable plant sites set up in a commercial quarry for a specific project are considered part of the site of work when the quarry is adjacent to or virtually adjacent to the project site.

For deliveries by a supplier or an independent trucking firm from a certain material supply facility to be considered outside Davis‑Bacon coverage, the facility must be off the project site and 10% or more of sales must actually be made from the facility to the general public. (See Section 5.2(1)(3) of Regulations, Part 5.) Sales to the public must be more than token sales. Additionally, DOL has further defined Material Suppliers as entities that ONLY deliver materials/supplies and ONLY engage in activities as part of those tasks. An entity that both supplies materials and also performs contract work is not a supplier but rather a contractor or subcontractor, and ALL employees are subject to Davis-Bacon labor standards provided their time on site is not de minimis.

D. Preparation of Certified Transcript of Labor Payroll

A copy of a blank "Certified Transcript of Labor Payroll" (Form 830176) is provided at: https://iowadot.seamlessdocs.com/sc/

1. Heading

The heading of a payroll transcript must include the information as shown in Appendix 2‑14. Subcontractors shall include name of prime contractor. Wage decision number must be listed, so there will be no confusion on minimum wage rates for the project.

2. Contracts with Multiple Projects

Typically, payroll transcripts are required from the prime contractor and each subcontractor for a project. However, for multi‑project contracts, the contractor may prepare one "combined" payroll transcript if the projects have identical wage schedules and are worked as one project with individuals used interchangeably between projects.

Therefore, prime contractors and subcontractors may combine multiple projects for payroll transcripts provided:

n each prime and subcontractor prepare individual transcripts, and

n all projects included are listed on that "combined" payroll transcript.

2a. Projects that cover multiple Wage Zones

Contractors are required to pay employees hourly wage rates and fringe benefits in accordance with the appropriate work classification and Wage Zone as specified in the Predetermined Wage Rate for the contract. Wage Zones are defined in the Predetermined Wage Rate by groupings of counties and cities.

If a project traverses two or more wage zones, the contractor may elect to pay employees either:

· Wage rates/fringe benefits based on the higher Wage Zone, or

· Wage rates/fringe benefits based on the Wage Zone where the employee performed work. This requires additional record keeping documenting the time employees worked in different wage zones.

3. Required Contract Provisions

The Required Contract Provisions (Form FHWA‑1273) attached to contract documents show that at least the following items shall be observed:

a. Payrolls shall only contain employee's full name and an individually identifying number for each employee (e.g., the last four digits of the employee’s social security number). Contractors and subcontractors are required to maintain complete social security numbers and addresses of employees and to provide such information to government agencies upon request.

b. Employee's craft and classification must be listed exactly as shown in the wage decision. For example, it is not acceptable to simply use "Operator‑Group 2" without listing the classification.

c. If an employee works in more than one work classification during the pay period, the employee’s hours may be assigned to one classification, provided the classifications are in the same Group (i.e., same wage rate and fringe benefit).

d. Deductions must be itemized.

e. No individual shall be employed as laborer or mechanic except on an hourly‑wage basis.

f. Contractors shall comply with all applicable federal, state, and local laws governing safety, health, and sanitation.

g. Overtime pay shall be computed on 40 hours/week. This means an employee must accumulate the initial 40 hours before overtime becomes reimbursable. This is computed at the base Davis‑Bacon rate with fringe benefits being paid at the straight time rate.

Employee work hours accumulated on a contract where the Davis‑Bacon Act applies shall be reimbursed at least Davis‑Bacon labor rates. Contractors shall carefully track and document time for employees who charge time to different contracts in a single pay period, especially if these different contracts are not all subject to Davis‑Bacon labor rates. For example:

CASE 1:

Employee "A" has charged labor time to two projects in week "X". Project 1 is subject to Davis‑Bacon, project 2 is not. Employee "A's" time sheet shows:

Monday – Thursday 4 days at 8 hours/day, project 1

Friday, Saturday 2 days at 8 hours/day, project 2

Employee "A" has accumulated 48 hours (6 days x 8 hours/day) in week "X."

Employee "A" is reimbursed:

n 4 days x 8 hours/day = 32 hours x project 1's Davis‑Bacon wage rate

n 1 day x 8 hours/day = 8 hours x project 2's standard wage rate

n 1 day x 8 hours/day = 8 hours OT x project 2's overtime rate

CASE 2:

Employee "B" has charged labor time to the same two projects noted in Case 1. This employee's time sheet shows:

Monday – Thursday 4 days at 10 hours/day, project 2

Friday 1 day at 8 hours/day, project 1

Employee "B" has accumulated 48 hours (4 days x 10 hours/day) plus (1 day x 8 hours).

Employee "B" is reimbursed:

n 4 days x 10 hours/day = 40 hours x project 2's standard wage rate

n 1 day x 8 hours = 8 hours OT x project 1's Davis‑Bacon overtime rate

CASE 3:

An employer may elect to pay weighted overtime for overtime hours worked. Using the example from Case 2 above, overtime may be calculated as follows.

Calculate weighted overtime rate:

(40 hours x project 2's standard wage rate) + (8 hours x project 1’s Davis-Bacon wage rate) = total base pay

Total base pay/48 hours worked = weighted pay rate

Weighted pay rate x 1.5 = weighted overtime rate

NOTE: If the weighted overtime rate does not exceed the Davis-Bacon rate, the Davis-Bacon rate must be used.

As in Case 2, employee "B" has accumulated 48 hours (4 days x 10 hours/day) plus (1 day x 8 hours).

Employee "B" is reimbursed:

n 4 days x 10 hours/day = 40 hours x project 2's standard wage rate

n 1 day x 8 hours = 8 hours OT x weighted overtime rate

4. Work Assignments

Contractors shall acquaint their supervisors with crafts and minimum wage provisions so employees are assigned work that conforms with their classification, and the correct classification and rate may be reported to contractor's home office. Exceptions to the general rule include:

To establish a uniform procedure among contractors for future wage determinations, contractor shall show on payroll COMBINATION crafts for employees performing more than one type of work. However, all work classifications for that individual shall be listed. For example:

CASE 1:

Lower classification employee doing higher classification work.

n Shall segregate hours and pay at higher wage rate if individual is not being reimbursed the highest rate for class of work performed.

CASE 2:

Higher classification employee doing lower classification work.

n Not necessary to segregate hours performing separate tasks, provided individual continues to be reimbursed at the highest rate.

n Shall segregate hours and classifications if individual will have their wage rate reduced when doing lower classification work.

5. Working Supervisors

Supervisors who spend more than 20% of their time performing other "labor type" duties as a regular part of their activities at the job site must be so designated by having the "other" work classifications listed on the payroll transcript. For example: A supervisor who also does carpentry work, or operates a dozer, or drives a truck would have to have these duties listed on the payroll transcript.

This requirement confirms their hourly rate is for the highest work classification. Any premium pay received for supervision will be over and above the rate of pay for work performed.

6. Apprentices

Apprentices are permitted to work at less than the predetermined wage rate when all the following conditions apply:

n They are individually registered in an approved apprenticeship program.

n They are paid the percentage of the hourly rate required by the apprenticeship program.

n They are paid the appropriate fringe benefits as discussed in the paragraph below.

n They are employed within the allowable ratio specified in the approved program for the number of apprentices to journeymen.

• Compliance with the apprentice-journeymen ratio is to be applied on the job site.

• Compliance with the apprentice-journeymen ratio is to be determined on a daily, not weekly, basis.

Apprentices shall be paid fringe benefits in accordance with provisions of the apprenticeship program. If a particular apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for applicable classification. If the Wage and Hour Division administrator determines that a different practice prevails for the

applicable apprentice classification, fringe benefits shall be paid in accordance with that determination.

Refer to FHWA-1273 IV(4)(a) for more details.

7. Trainees

In general, the same conditions for apprentices above apply for trainees. Refer to FHWA-1273 IV(4)(b) for more details.

Trainees shall be paid fringe benefits in accordance with provisions of the trainee program. The project engineer should verify with the Civil Rights Bureau that the contractor has an approved training program if trainees are being paid less than full Davis-Bacon wage rates. If a particular trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination for the work actually performed. The Wage and Hour Division administrator will determine if there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices.

8. Owner‑Operators of Hauling Equipment

Bona fide owner‑operators of trucks and similar construction hauling equipment, who are independent contractors, are not subject to enforcement of contract labor standard provisions. Owner‑operators of other non‑hauling type equipment are considered as employees, not as subcontractors.

A ruling by the Department of Labor states in effect that:

n Because owner‑operators usually work under payment arrangements based on a unit price [for example, so much per cubic meter (yard) hauled] rather than on an actual truck or equipment rental rate plus the driver's (or operator's) rate, and

n Because of difficulties that have arisen with respect to securing adequate data on rental arrangements to determine whether contract minimum rates are being paid, therefore,

n As a matter of administrative policy, the provisions of Davis‑Bacon and related acts will not be applied to bona fide owner‑operators of trucks or other similar construction equipment used exclusively for hauling and who are independent contractors.

This policy, which is not intended to encompass other equipment such as bulldozers, scrapers, backhoes, cranes, drilling rigs, and welding machines, will be in effect until such time as it may appear practical to devise workable and easily enforceable procedures for obtaining compliance with respect to such owner‑operators.

"Certified Transcript of Labor Payrolls" including names of such bona fide owner‑operators need not show hours worked nor rates allegedly paid, but only operator's name and the notation "owner‑operator." In this way, such individuals can be recognized as bona fide independent contractors NOT subject to contract labor standard provisions and can be distinguished from equipment operators who ARE subject to such provisions.

A ruling by the Chief Counsel for the Federal Highway Administration requires that data for each driver employee of truck owner‑operators, regardless of number of trucks owned, must be shown the same as for any other laborer or mechanic. This means all such employees shall be listed on the payroll with a complete breakdown of hours worked, hourly rate paid, and all other required information according to "Required Contract Provisions" (Form FHWA‑1273). In those instances where truck "owner operators" drive their own truck, payroll

notation shall list them as "owner operator" with no further information relative to hours worked or wages paid. However, during multi‑shift operations when an owner may hire a driver for a subsequent shift, a complete breakdown of information relative to daily hours worked, hourly rate paid, etc., must be shown on the payroll for "employee of owner‑operator." This same procedure shall be followed if owners have several trucks for which they hire drivers. The only exception to showing a complete breakdown of information is when "owner operators" physically drive their own trucks.

9. Flaggers

The Department of Labor has determined that duties of flaggers are clearly manual and physical in nature and as such they are laborers or mechanics within the meaning of the Davis‑Bacon Act. Flaggers who perform a dual function, such as flagger and journeyman, must be paid journeyman's rate.

10. Survey Crews

Survey crew members who spend most of their time on a covered project taking or assisting in taking measurements would likely be deemed laborers or mechanics and covered by Davis-Bacon labor standards (provided that they do not meet the tests for exemption as professional, executive, or administrative employees under 29 CFR part 541).

11. Exempt Classifications

The Department of Labor has determined that classifications whose duties are generally not manual or physical in nature are not subject to Davis-Bacon regulations. The following classifications are considered exempt from Davis-Bacon regulations, provided that the employees are not engaged in other covered work:

a. Ticket-taker

b. Certified plant inspector, Quality Control technician

12. Corrections

When errors or omissions are discovered, contractor will be required to make necessary corrections by submitting a supplemental payroll transcript. Original transcript will not be returned. A Supplemental transcript shall be so labeled (e.g.

No. 15 Supplemental). Examples of supplemental transcripts are shown in Appendix 2‑14. Only employees affected by the errors or omissions are listed on the supplemental.

Contractors may be required to submit a notarized statement from the employee or a copy of both sides of a canceled check verifying that an adjustment has been made. Sufficient explanation shall be given to make any adjustment easily understood by all who may review a supplemental transcript.

13. Starting, Suspending, Completing Payroll Transcripts

Payroll transcripts shall be submitted as soon as the contractor starts any project activity at the site of work. Transcripts shall be in sequential order starting with the number "1." When work on a contract is suspended, the last payroll transcript should be labeled "suspend" (e.g., No. 14 Suspend). This procedure shall be followed when work is resumed or completed (e.g., No. 15 Resume and No. 24 Final). Contractors, if they choose, may continue payroll transcripts during the suspension period with a notation on the transcript "No work during this period."

If contractor or subcontractor fails to submit required records or make them available, the Iowa DOT, FHWA, or DOL may, after written notice to contractor, take such actions as may be necessary to suspend further payments. Payment should be withheld on only the prime and subcontractor(s) who are in violation. Payment to subcontractors who submit correct payrolls should not be withheld because of mistakes of another subcontractor. Failure to submit required records upon request or make such records available may be grounds for debarment action.

14. Records

Payrolls and basic records shall be maintained by each contractor and subcontractor during the course of the work and shall be available for inspection at any time by authorized representatives of the contracting agency, DOL, or FHWA.

Regulations and contract provisions require contractors to preserve employment records at least THREE years after completion and final settlement of the contract.

E. Completion of "Statement of Compliance"

A "Statement of Compliance" is printed on the backside of the "Certified Transcript of Labor Payroll" (Form 830176) and relates to wage kickbacks, payrolls, apprentices, fringe benefits, and falsification penalties. A copy is provided in Appendix 2‑14. Contractors who have permission to use their own payroll form must attach a copy of the "Statement of Compliance" to their payroll transcript. The statement of compliance is certified by the dated signature of the contractor or an authorized agent. Prime contractors must also sign all Statements of Compliance submitted by subcontractors. A scanned copy of the original “Statement of Compliance” and payroll transcripts may be submitted to the project engineer as email attachments, or by uploading to Doc Express, provided the Contractor retains the Statement(s) of Compliance with original signature(s) for the required retention period.

F. Fringe Benefits

Davis-Bacon prevailing wages are made up of two interchangeable components - basic hourly wages and fringe benefits. Under Davis-Bacon, fringe benefits must be paid for all hours worked. The fringe benefits may be paid:

· In cash

· To an approved plan, fund or program

· Any combination thereof

Example:

The wage decision requires:

Basic hourly rate $10.00

Fringe benefits $ 1.00

Total prevailing rate $11.00

The contractor can comply by paying:

1. $11.00 in cash wages

2. $10.00 plus $1.00 in pension contributions or other “bona fide” fringe benefits

3. $ 9.00 plus $2.00 in pension contributions or any combination of “bona fide” fringe benefits. In this example, overtime must be paid at the basic hourly rate of $10.00

1. Payment of Fringe Benefits to an Approved Plan

Contractors who pay fringe benefits to approved plans, funds, or programs in

amounts not less than determined in applicable wage decision shall show on the face of their payroll the basic cash hourly rate and overtime paid to employees. Such contractors shall check 4(a) to indicate they are paying to approved plans, funds, or programs not less than the amount predetermined as fringe benefits for each craft. Any exception shall be noted in 4(c).

Details of the fringe benefit plan, fund, or program shall be submitted with the first payroll to the project engineer. The submittal shall include description of the benefits, dollar amount contributed per hour, and if applicable, name of the Trustee or third person to whom the benefits were paid.

Included as “bona fide” fringe benefits, are benefits such as supplemental unemployment plan, life insurance, health insurance, pension, vacation, holidays and sick leave. Credit may be taken as Davis-Bacon fringe benefits for training, provided the training program is approved by the U.S. Bureau of Apprenticeship and Training and the amount is reasonable (i.e., less than $0.50/hr.). One example is Laborers/Employers Cooperation and Education Trust (LECET). No credit may be taken for any benefit required by federal, state, or local law (i.e., worker’s compensation, unemployment compensation or social security contributions). Also, travel expenses, meals, lodging, per diem expenses, uniforms, administrative expenses, union administrative dues, union working dues or industry promotional funds. Heavy Highway Contractors’ Advancement Fund (HHCAF), Iowa Laborer’s Political League (ILPL), Labor-Management Work Preservation Fund (LMWPF) are not considered bona fide fringe benefits within the meaning of Davis-Bacon regulations.

2. Cash Payment of Fringe Benefits

Contractors who do not pay any fringe benefits to an approved plan, fund, or program must make cash payment to an employee. Payment shall not be less than the predetermined fringe benefit amount plus minimum wage rate. When fringe benefits are paid in cash, contractor shall check 4(b). Any exceptions shall be noted in 4(c). If part of the fringe benefits is paid to an approved plan, fund, or program and part in cash to an employee, then both 4(a) and 4(b) shall be checked.

3. Fringe Benefits and Overtime

Contracts covered by the Davis-Bacon Act are also subject to the Contract Work Hours and Safety Standards Act (CSHSSA) which requires overtime on covered projects at 1 ½ the hourly rate for hours worked more than 40 hours per week.

The overtime rate is computed at the sum of 1 ½ times the basic rate plus the designated hourly rate for fringe benefits. It is not required that the hourly cash rate for fringe benefits be multiplied by a factor of 1 ½.

For example:

Davis-Bacon rate $10.00

Fringe benefit $ 2.00

The overtime rate of pay may be calculated by 3 methods:

1. $10.00 (base)+ $2 (fringe) + ½ $10.00 (D-B rate) = $17.00

2. $12.00 (cash) + ½ $10.00 (D-B rate) = $17.00

3. $ 8.00 (base)+ $4 (fringe) + ½ $10.00 (D-B rate) = $17.00

Project Engineer's Involvement

A. Field Procedure

Early and complete labor compliance inspections are essential to the development of a sound compliance pattern on all contracts. At least one inspection shall be made on:

n Contracts of short duration (six months or less)

n Prime contractors and each subcontractor performing more than $10,000 of work (on any contract)

For contracts which extend over a longer period of time (greater than 6 months), inspections shall be made on approximate six months intervals. The project engineer is responsible to see that required labor compliance inspections are conducted and recorded. Whoever is assigned the compliance inspection needs to be thoroughly familiar with the regulations and instructions.

The Associated General Contractors of Iowa have implemented a Prevailing Wage Notification Program. Contractors participating in this voluntary program have established a proactive method for informing their employees of the Davis-Bacon wages and benefits to be paid on projects.

It is felt that these proactive measures by the contractor will allow the project engineer to eliminate the routine wage rate interviews and focus on complaints received from the employees. This procedure will not eliminate the need for posting the wage rate decision on bulletin boards or submittal of certified payrolls.

The list of contractors participating in the Prevailing Wage Notification Program is maintained on the AGCI's website (https://www.agcia.org/member-services-benefits/).

Contractors wishing to participate should contact the AGC of Iowa.

The project engineer’s office staff review certified payrolls that have been submitted. To ensure that certified payrolls have been received for all subcontractors whose employees worked during a given week, the office staff must be advised of the subcontractors that worked. The project engineer’s office should develop a process to provide this information between the inspection staff and office staff.

Methods to accomplish this include:

· FieldManager query “ContractorsOnSite” lists which contractors worked during a week. FieldBook users must designate in the Inspectors Daily Report (IDR) which contractors were “On Site” during the week

· Inspectors submit to the office a “Weekly Payroll Check” indicating which subcontractors worked during the week. The FieldManager inquiry, “Subcontractors Assigned to the Contract” can be used for the list of subcontractors.

If payrolls of the prime contractor are not received within 2 weeks of the period covered, the residency staff should advise the prime contractor, in writing, which payrolls have not been submitted and that progress payments for the work will be withheld. If payrolls of subcontractors are not received within 3 weeks of the period covered, the residency staff should advise the prime contractor, in writing, which payrolls have not been submitted and that progress payments for the subcontracted items will be withheld. In either case, communication with the contractor sooner than these time limits may be appropriate to inquire on the status of payrolls.

B. Wage‑Rate Interview

When conducting a wage‑rate interview, the following questions shall serve as a guide:

1. Is the employee receiving at least the specified wage rate for type and class of work performed?

2. Is proper allowance being made for fringe benefits and have the plans been explained to the employees?

3. Is work performed within the proper classification?

4. Are additional classifications necessary?

5. Does the employee have complaints as to hours, wages, and fringe benefits?

The findings of the wage rate interview are to be documented on the EEO Project Site Inspection/Wage Rate Interview form (Form No. 650170). Names of employees interviewed, and date of the certified payroll transcript used are to be recorded on the interview form. If no discrepancies are identified during the interview, this should be so noted. In some instances, employees may not be knowledgeable of the pre-determined hourly wage rates and fringe benefits to which they are entitled. Furthermore, they may not be aware of the hourly wage rates and fringe benefits they have been paid or what work classification they have been assigned. In these cases, the interviewer should document on Form 650170 that the findings of the interview were inconclusive because the employee was unable to respond to the questions. Interview forms are to be retained in the project files. A copy of Form No. 650170 can be found at: https://iowadot.seamlessdocs.com/sc/

C. Violations and Complaints

Any violations discovered, or complaints received, shall be investigated promptly. If a contractor is found to be in violation of the contract's labor standard provisions, a complete report shall be written giving details of violation(s) and results of the investigation.

The report shall also include an amount of money, if any, found to be due to employees and the number of employees who shall receive these payments. A copy of this report shall be sent to the Construction and Materials Bureau.

D. Office Procedure

1. Payroll transcripts shall be checked to verify that:

n Information in the heading is correct and complete.

n Titles designating crafts correspond correctly with those in wage schedule for that particular contract. No others may be used unless a supplemental wage determination has been secured by the contractor. If a listed craft is not included in the wage decision, the contractor shall be advised that a supplemental wage rate must be requested.

n Rate per hour is not less than that shown for each craft in the wage schedule for that contract, and overtime rates (if any) are at least one- and one-half times the regular base rate, plus any fringe benefits. Exception: Contractors have the option to reduce basic cash wage by the excess payment of fringe benefits. Fringe benefits may be in cash, by contribution into a bona fide fringe benefit program, or a combination of both.

n Fringe benefits (if any) have been provided and appropriate paragraph is checked on the Statement of Compliance.

n The Statement of Compliance is complete and properly signed. Multiple‑sheet transcripts will be considered certified if the necessary information and dated signature are shown on the last sheet of that packet.

n Signature of the prime contractor appears on all payrolls submitted from subcontractors.

n Transcript is submitted within one week after the end of a payroll period. ESTIMATES SHALL BE WITHHELD until such time as these requirements are fulfilled.

n An occasional spot check to determine accuracy of computations.

n Checking payroll transcripts can be time consuming. The primary objective is to ensure the proper wage rate is being paid. It is important to review the first 3‑4 payrolls received from contractors and subcontractors carefully to be sure information is complete and accurate. Once it is apparent that wage rates used are appropriate, it is not necessary to check each line of each payroll. However, occasional spot checks should continue to be made, paying particular attention to new crafts listed. If problems are noted, subsequent payrolls must be checked until problems are resolved. Payrolls submitted to Doc Express that have been checked shall be indicated by adding “checked by xxx” in the comment field in Doc Express.

2. Corrections

When errors or omissions are discovered on transcripts, contractors will be advised. Necessary corrections must be made on a supplemental payroll transcript (See example in Appendix 2‑14). The original payroll transcript will NOT be returned to the contractor.

3. Disposition

Payroll transcripts shall be retained in the project engineer’s project file for at least 3 years following final federal reimbursement. The date of final federal reimbursement is provided by the Finance Bureau

Because transcripts contain employees’ personal information, including Social Security numbers, the transcripts are to be shredded, or other secure destruction method, prior to their disposal.

Supplemental Wage Rates

If, after a letting, the contractor determines that the wage decision for the contract does not include wage rates for one or more work classifications to be used, the contractor must request additional classification(s) and wage rate(s). The contractor shall initiate the request by completing a “Request for Authorization of Additional Classification and Rate” form (Form SF-1444) https://www.gsa.gov/reference/forms/request-for-authorization-of-additional-classification-and-rate. Contractor completes blocks 1-15. Contractors must request employees, if present, or their designated representative, to sign block 16 noting the employee's concurrence or disagreement with the contractor's proposed wage and benefit rate. The "designated representative" may be a union representative; however, it cannot be the contractor's representative. The contractor must pay the proposed wage and benefit rate pending response from DOL.

The request shall be submitted to the Contracts and Specifications Bureau who, after concurrence, will forward the form to the U.S. Department of Labor for approval.

Approval from the U.S. Department of Labor usually takes at least 30 days, so an early request by the contractor is necessary. Final payment to the contractor shall not be held up pending a response from the Department of Labor if the contractor has made timely submittals for additional wage classifications and there are no DOL investigations on file.

2.25 SUBCONTRACTS

Subcontract Request

Contractor’s Requirements

Instructions for completing Subcontract Requests are available on the Contracts and Specifications Bureau website “Letting Process” https://iowadot.gov/contracts/General-letting-information/Lettings-process#20178505-award-of-contracts under “Subcontracting”.

Note the additional guidelines on the administration of DBE subcontracts that follow.

Except for trucking by DBE firms, “Subcontract Request” (Form 830231) are not required for trucking of materials. Trucking by DBE firms shall be documented on a “Subcontract Request and Approval” form, but the dollar value will not be used to determine the amount subcontracted. The contractor (or subcontractor) shall advise the project engineer in writing, on a daily basis, the names of independent companies that will be hauling materials on the “site of work”. This will allow the project engineer to monitor trucking companies for compliance with Davis-Bacon requirements. Similarly subcontract requests also are not required for concrete pumpers, but employees of concrete pumping companies are subject to Davis-Bacon wages when employed on the site of work. The contractor (or subcontractor) should also advise the project engineer when concrete pumpers are on site to ensure compliance with Davis-Bacon requirements.

When the subcontractor is a wholly owned subsidiary of the prime contractor, the amount subcontracted may be reported as zero. A list of wholly owned subsidiaries is maintained by the Contracts and Specifications Bureau and available at: w:\Highway\Contracts\Fieldinformation.

The Contracts and Specifications Bureau will provide a Subcontractor Authorization and EEO Poster Notice to the contractor for placement on the project’s bulletin board. This poster is considered the Department’s written authorization of subcontractors for the contract.

Project Engineer’s Responsibility

Refer to Chapter 2.5 of the FieldManager Users’ Guide for instructions on importing the “SiteXchange” file into FieldManager. The “SiteXchange” file will import all subcontractor information, including associating items with the appropriate subcontractor.

While contractors submit subcontract requests to the Contracts and Specifications Bureau with the signed contract for DOT administered contracts, additional requests or modifications to existing requests are submitted to the project engineer.

Existing Items by Subcontractor

The project engineer is to check revised .CON files for accuracy (% subcontracted, current EEO/AA policy, items assigned to appropriate subcontractor) and forward the revised .CON file to the Contracts and Specifications Bureau as an email attachment. The email is sent to dot.contracts@iowadot.us with a subject line of “Revised Con File” and a brief description of the modifications within.

New Contract Items to be Completed by New Subcontractor

If new items, added to a contract, will be completed by a new subcontractor, the subcontract request must be submitted to the project engineer on hardcopy Subcontract Request (Form 830231 https://iowadot.seamlessdocs.com/sc/) and submitted to the project engineer as an attachment to an email. The SiteXchange software is not able to generate a subcontract request form because the software does not support new items added by contract modification. A subcontract request is not required for new contract items to be completed by an existing contractor.

The project engineer is to check the Subcontract Request form for accuracy (% subcontracted and current EEO/AA policy) and forward the form to the Contracts and Specifications Bureau as an email attachment. The email is sent to dot.contracts@iowadot.us.

The additional/modified requests are submitted to the project engineer to minimize delays in providing the information to field staff.

The project engineer is responsible to make sure a subcontractor does not perform more work than described on the approved subcontract. Occasionally, contractors may have to rent additional equipment and hire extra employees to complete their work. However, when the entire crew and equipment of another contractor is used to complete work, the prime contractor is violating the intent of Specification 1108.01 and is considered brokering a project. If the project engineer’s staff observes work performed by anyone other than the approved subcontractors, the Construction and Materials Bureau should be notified. Assistance will be provided to investigate the circumstances.

At the preconstruction conference, it will be beneficial to discuss methods of keeping subcontractors informed of the work status. Although the prime contractor is responsible to make progress payments to a subcontractor, numerous incidents in the past have indicated a lack of timely progress payments from the prime contractor to the subcontractor. Subcontractors may request the project engineer to furnish them a copy of a progress voucher for informational purposes.

Leased Employees

Prime contractors and approved subcontractors may utilize “leased” employees as part of their “own” work crew. In either case, the prime contractor shall submit a Subcontract Request before leased employees can be on the job site. “Leased” employees shall be obtained from a firm that does not perform highway construction (i.e., a temporary employment agency).

When “leased” employees are used, they are considered part of the contactors “own organization” when the following requirements are followed:

· The Contractor maintains control over the supervision of the day-to day activities of the leased employees.

· The Contractor remains responsible for the quality of the work of the leased employees.

· The Contractor retains all power to accept or exclude individual employees from work on the project.

· The prime contractor remains ultimately responsible for the payment of predetermined minimum wages and submission of payrolls on contracts that required predetermined wages.

The employee leasing company will appear on the list of subcontractors and under the EEO/AA list. The leasing company is responsible for all customary employer responsibilities including EEO/AA in hiring, training and promotions, and the submittal of required employee information to the Department, state, and federal agencies. If prevailing wages are required, the employee leasing company shall submit certified payrolls. The certified payroll will need to designate the contractor that is using the leased employee(s).

A leased employee may be utilized for several contractors during a project; however, the individual employee may be used by only one contractor at a time during the day.

DBE contractors may not use leased employees because Federal DBE regulations prohibit the use of leased employees and will not meet the commercial useful function towards DBE commitments.

Subcontractor ‑ Disadvantaged Business Enterprise (DBE)

A. Contract Award

On Federal‑aid projects with predetermined goals, all bidders will be required to submit a "Statement of DBE Commitment" (Form 102115) with their bid. A blank copy is provided at: https://iowadot.seamlessdocs.com/sc/. This form identifies DBE subcontractors, suppliers, transporters, and/or manufacturers that will be used to satisfy the DBE goal. Form 102115 shall also include work or items to be subcontracted, cost of this work, percent applicable to DBE goal, and dollar amount committed to each DBE.

Upon execution of a contract, the prime contractor becomes committed to those DBEs listed on Form 102115. This commitment is therefore a contractual arrangement between the State and the prime contractor with the same enforcement as any other provision specified in the contract documents. A prime contractor is required to enter into a contractual arrangement with each DBE listed by formally executing a written subcontract agreement specifying the work to be performed and appropriate compensation for that work. This two‑tier process, which contractually obligates the prime contractor to both the State and each participating DBE, formalizes implementation of all DBE contract provisions.

The Contracts and Specifications Bureau will review the low bidder's "Statement of DBE Commitments" (Form 102115) to assure that certified DBEs are being used.

After review, the DBE commitment information will be posted on Bid Express (https://bidx.com/ia/main) in the letting page for each letting.

B. Subcontract Requests

For added or modified subcontracts, the project engineer must compare the "Subcontract Request" (Form 830231) submitted by the contractor to the contactor’s DBE Commitment found in Bid Express (https://bidx.com/ia/main). Prime contractors must subcontract the work to the certified DBE subcontractor. Any request to change certified DBE subcontractors, or any request to subcontract work for less than the total amount shown on the “DBE Commitment” document shall not be approved without written approval from the Civil Rights Bureau.

1. Temporary Employees and Leased Equipment

A DBE may lease equipment consistent with standard industry practice provided a rental agreement, specifying terms of lease arrangement, is approved prior to a DBE starting work. If equipment is of a specialized nature, the lease may include an equipment operator. If this practice is generally acceptable within the industry, then the operator can remain on lessor's payroll. For equipment that is not specialized, a DBE is expected to provide the operator and be responsible for all payroll and labor compliance requirements.

Operation of equipment shall be subject to full control of the DBE. Such an arrangement shall be short term and involve a specialized piece of equipment used at the job site.

The Civil Rights Bureau maintains an electronic roster of certified DBE trucks in their folder on the Local Area Network.

2. Commercially Useful Function

A commercially useful function exists when:

n DBE is totally responsible for execution of a distinct element of work by performing, managing, and supervising the work involved in accordance with the contract documents, normal industry practice, and

n That DBE firm receives due compensation as agreed upon for the work performed.

To meet commercially useful function requirements of the regulations and contract, the following statements are applicable:

n DBE firm must manage the work contracted. Management shall include scheduling work operations, ordering equipment and materials (if materials are part of the contract), preparing and submitting payrolls and all other required reports and forms, as well as hiring and firing employees, including supervisory employees

n DBE shall perform work with employees normally employed by and under the DBE's control. In all instances, the DBE shall be responsible for payroll and labor compliance requirements concerning all workers under their control. DBEs may use other means to perform work on a limited basis when the contract requires specialized knowledge, skills, or equipment. A DBE may be allowed to augment their work force with personnel which normally work for another firm, if requested and approved by the Civil Rights Bureau prior to commencing work.

n DBE must supervise daily operations of their portion of contracted work. The only two acceptable ways for a DBE to supervise daily operations are:

1) The DBE owner may act as the superintendent and directly supervise work, or

2) A skilled and knowledgeable superintendent employed and paid wages by the DBE must directly supervise that work.

If the latter is used, the DBE owner must be actively involved in making operational and managerial decisions of the firm. Basically, this means that all administrative functions shall be performed by personnel responsible to, or employed by, the DBE at facilities or locations under the DBE's control.

n DBEs shall supervise and perform contracted work with workers on their payroll and under their direct supervision. The DBE and their superintendent must, on a full‑time basis, supervise and control contracted work. Supervision of contract work by personnel normally employed by another contractor or by personnel not under the DBE's control constitutes failure to perform a commercially useful function.

The DBE Specifications Article 1102.17 include minimum requirements for DBE manufacturers, dealers, transportation services, and subcontractors. DBE subcontractors that indicate work which will be performed by employees of another firm or with leased equipment should be questioned.

The Construction and Materials Bureau shall be notified in all cases where there is a question of commercially useful function before that subcontract is approved.

The Civil Rights Bureau will assist in determining requirements of a commercially useful function for DBE suppliers and manufacturers.

3. Partial Subcontract of an Item

It is not unusual for DBE subcontractors to be involved in only part of a contract item. This is to be documented on Form 830231 by clearly stating in the "Description" column exactly what portion of an item is to be accomplished by the DBE and the corresponding dollar amount. Details of subcontracts that have “Part Items” should be discussed at the preconstruction meeting, so project personnel are informed of the work (i.e. Commercially Useful Function) to be performed by DBE subcontractors.

For conditions where a subcontract does not exist, but a DBE firm is manufacturing, supplying, or trucking materials to the job site, terms of the agreements shall be described in Form 830231. This information is documented on Form 830231 so the project engineer can be assured that a prime contractor is meeting commitments previously stated on Form 102115. The work documented on the form shall be assigned to a contract item. A typical example may be for trucking only of hot mix asphalt and should be included as: "HMA Surface-Trucking Only-Lump Sum"; Quantity =1; Unit Price= $30,000. This dollar value will not be used to determine the percent subcontracted as specified in Specification 1108.01.

Inspection staff must monitor work performed and periodically inform the project engineer as to which individuals and equipment actually worked, so payrolls can be spot‑checked.

C. Construction Period

The project engineer and inspectors must routinely review work subcontracted to DBE subcontractors to assure work is being performed as intended and that DBEs are performing a commercially useful function. Where work is performed by any other contractor or with equipment not owned by the DBE, the inspector shall issue a noncompliance notice citing violation of the Specification for Disadvantaged Business Enterprises, Article 1102.17. This noncompliance shall be immediately reported to the project engineer, who will in turn notify the Construction and Materials Bureau.

Prime contractors will be given credit toward the DBE contract goal only when a DBE performs a commercially useful function. The requirements for a commercially useful function are outlined in the previous section "Subcontract Requests."

DBEs shall negotiate cost, arrange for delivery, and pay for materials and supplies required for their portion of the contract work. Invoices for materials shall be invoiced to the DBE firm and not to a prime contractor.

No credit shall be allowed toward the DBE goal for cost of materials placed by a DBE subcontractor when payment is made by deducting this payment from the prime contractor's payment to the DBE.

Project engineers must document performance of the DBEs activity on all projects as part of the normal project contract compliance monitoring. On‑site project monitoring by field personnel shall include employee assignments, equipment used, and supervision of the work as indicated on the subcontract form. The commercially useful functions can be documented in the Inspectors Daily Report (IDR) or on Form 517014 “DBE Commercially Useful Function Checklist” found at: https://iowadot.seamlessdocs.com/sc/?. All irregularities must be documented in the field books, immediately reported to the prime contractor, and the Construction and Materials Bureau.

Project engineers shall not allow a prime contractor or another contractor to perform work that has been committed to a DBE subcontractor without written approval from the Civil Rights Bureau.

In situations where a DBE subcontractor cannot (or is not) performing, the prime contractor must follow all steps described in the specifications. Upon receipt of a signed statement from the DBE and documentation where the prime contractor will satisfy the goal with other items or DBEs, the project engineer may recommend to the Civil Rights Bureau Team that the commitment be waived, and the required goal adjusted. The Civil Rights Bureau must provide written approval of all substitutions before any changes in subcontracted work are performed.

D. Post Construction

Prime contractors shall submit a completed "Certification of DBE Accomplishment" (Form 102116) with the final project documents for all Federal-Aid contracts and shall list the dollar amounts paid to all DBE firms on the contract. A copy of the form may be found at: https://iowadot.seamlessdocs.com/sc/? The form should be placed in the signature drawer in Doc Express and signed electronically in Doc Express.

This form certifies the dollar amount paid to each DBE. If the contract had a DBE commitment, project engineers must compare the dollar amounts on Form 102116 to dollar amounts committed to DBE’s as shown in the “DBE Commitment” document that is located on Bid Express. If the contract contained a DBE commitment, the Engineer shall verify that the Contractor has attained the DBE commitment specified to each DBE firm listed on Form 102115. A price adjustment will be assessed for the amount of commitment not paid to each DBE firm used unless the DBE commitment to that DBE firm was reduced as allowed by Article 1102.17, G, 3. Project engineers must include a written explanation describing situations, background, and findings which resulted in reductions of adjustments. This explanation shall be attached to Form 102116. The DCE shall review these adjustments prior to signing Form 830436.

When the prime contractor is a certified DBE contractor, Form 102116 is required to be submitted upon completion of a Federal Aid contract. The DBE contractor shall include the amount of work completed by their firm and DBE subcontractors. The project engineer will sign the form acknowledging receipt of the form and does not need to complete the amounts in the lower portion of the form.

Unique problems have been noted with the goals and variables of the DBE program. Documentation of any activity related to the program is important and must not be overlooked. Record all telephone or personal contacts noting time, place, and details.

Subcontractor ‑ Traffic Control

Traffic control items of a contract may require designation of a subcontractor to perform the work depending on how much of the total item is performed. Some guidelines are:

A. A "Subcontract Request" (Form 830231) will NOT be required if:

1. Traffic control is a lump sum bid item and the traffic control supplier:

n Furnishes the traffic control devices

n Delivers materials to the "first use" location

n Keeps equipment operational by being on call from the contractor or through periodic visits to the site

n Picks up devices when a project is completed

2. Traffic control signals are bid as furnish and install and the traffic control supplier:

n Furnishes the traffic control devices

n Delivers materials to the "first use" location

n Picks up devices when a project is completed

B. A "Subcontract Request" (Form 830231) shall be required if:

n The traffic control supplier performs the entire item of traffic control (lump sum, furnish and install) and provides regular surveillance, cleaning, routine maintenance, and repair of devices, or changes the system between stages.

n The traffic control supplier performs contract work such as setting devices up at the "first use" location

n Traffic control is bid as incidental to other work

Prompt Payment to Subcontractors

Progress Payments to Subcontractors

Contractors are required to pay subcontractors for satisfactorily completed work within 7 calendar days after receiving payment (or should have received payment) from the contracting authority.

Certification of Subcontractor Payment

The Contractor shall provide to the Engineer a “Certification of Subcontractor Payment” form (Form 518002) with the signed final voucher. The form should be submitted to the signature drawer in Doc Express and signed electronically in Doc Express. The form shall include the names of all approved subcontractors, date the subcontractor’s work was completed, date of final payment to the subcontractor and the number of days between when the work was completed and paid. The contractor shall provide an explanation for instances that exceed 30 days.

The “Certification of Subcontractor Payment” form is not required to be submitted if there were no subcontractors on the contract.

Form 518002 is available at:

https://iowadot.seamlessdocs.com/sc/?

2.26 USE OF EXCESS PROPERTY OR HIGHWAY RIGHT‑OF‑WAY

Contractor's Use of Excess Property

A contractor who wishes to use excess property owned by the state in connection with a highway construction project must obtain a lease agreement from the Iowa DOT Right of Way Bureau. Excess property is defined as property, acquired by fee title, outside of the “normal” limits of the highway right-of-way line, but excluding borrow sites.

Contractor’s Use of Borrow Pits for Temporary Plant Sites

Contractors occasionally request to set their temporary paving or crushing plant in the project’s borrow pit. Action required to allow use of a borrow site depends on:

A. Method used to acquire borrow site (i.e. Temporary Easement vs. Fee Title) and

B. Need for additional borrow material

Borrow site is acquired by Temporary Easement.

Contractor shall obtain the following two items:

1. Written agreement from property owner allowing use of site as a temporary plant.

Separate agreement is required because agreement for temporary easement obtained by the Department is rights for only borrow material and does not give the Iowa DOT authority to allow other uses. A copy shall be furnished to the project engineer.

2. Permission from the project engineer.

Borrow site is acquired by Permanent Easement or Fee Title.

· If additional borrow material is not required for completion of project, contractor shall obtain lease agreement from Iowa DOT Right of Way Bureau.

· If additional borrow material is required for completion of project, contractor shall obtain permission from project engineer. No lease is required.

In all cases, the contractor is responsible for obtaining a storm water discharge permit for their operations.

Obtaining a Lease Agreement

To initiate a lease agreement, the contractor shall submit a letter of request to the project engineer. The letter shall include a plat or map of the affected area, date when the contractor needs the property, and the intended usage.

Upon receipt of a written request from the contractor, the project engineer shall prepare and forward to the Right of Way Bureau (Property Management Section), a "Request to Lease" letter along with a plat or map of the area. A sample letter is shown in Appendix 2‑20. The Property Management Section will determine a market rental fee for use of the property, prepare a plat and a lease agreement, obtain bond and signature on lease from the contractor, and furnish the project engineer and contractor with a copy of the signed lease. Whenever any right‑of‑way is leased in this situation, the contractor will be responsible to initiate and provide a storm water permit for their operations in that area.

Contractors must notify the project engineer ten (10) days before vacating the premises to allow time for inspection.

After a vacate notice is received, the project engineer will inspect the condition of any contractor leased excess property. Terms of the lease forbid release of any fuel, oil, grease, any other petroleum products, hazardous materials, or hazardous substances within the leased area or on any adjacent lands. If an area is satisfactory, the project engineer must notify the Right of Way Bureau (Property Management) who will release the bond. If an area is not satisfactory, the project engineer will notify the Right of Way Bureau (Property Management) and explain any damages. Property Management will make a determination of charges and handle release of the bond.

The Property Management section encourages project engineers to provide dollar estimates of any damage. Both the letter of request and notification of release shall be forwarded through the District Office.

Contractor's Use of Highway Right‑of‑Way

Occasionally a contractor requests permission to establish a plant site or a material stockpile on highway right‑of‑way. In reviewing these requests, the project engineer must consider the impact of vehicles (trucks or equipment) entering and leaving these sites on public traffic. In situations where these vehicles must enter an open ramp or lane at a point where access is not allowed to the general public, the request shall be denied. On two‑lane roads if an access permit can be obtained and public convenience and safety is not adversely affected, the request may be approved. On closed sections of the highway, right‑of‑way may be used on condition that trucks can enter and leave the closed road safely.

Many times, a contractor will have to exit a controlled‑access facility to deliver materials such as mulch, subdrain, guardrail, etc. These stockpiles may be allowed provided the material is to be used in the general vicinity where stockpiled.

NOTE: In these situations, the contractor will be responsible to initiate and provide a storm water permit for their operations in that area.

2.27 "CONTRACT QUANTITY AGREEMENT" ‑ FORM 830230

A contractor may request final payment for an item based on contract quantities. When a contract quantity request is received from a contractor, the project engineer shall verify that items included on the request are not items to be paid as contract quantity by Specification 1109.01. If there are no contractual conflicts, the project engineer will prepare a "Contract Quantity Agreement" (Form 830230) and submit the form to the signature drawer in Doc Express to be signed by the contractor and project engineer.

2.28 RETAINED FUNDS

Retained funds held by the Contracting Authority are for the purpose of satisfying 573 Claims. The term, “573 Claim”, originates from Chapter 573 of the Code of Iowa that addresses claims on government contracts. Persons or companies may file a “573 Claim” with the Finance Bureau for unpaid labor and/or materials.

Retained funds are not intended to offset credit payments for deficient work, including price adjustments and liquidated damages.

When payment is needed to be withheld for price adjustments for deficiencies, item progress should be withheld on the appropriate contract item(s) for the amount to be withheld. Pay quantities for prime contractor items should be withheld to cover liquidated damages. These items will be increased to the final quantities after a contract modification for price adjustments and/or liquidated damages is processed.

Release of Retained Funds

Prime Contractors are required to certify that they have given notice to all subcontractors and suppliers of their intent to request early release of retained funds. The notice must be provided 10 calendar days before the release of contractor retainage is requested. Chapter 26 allows the Contractor to request release of contractor retainage when the contract is substantially complete or after the contract is certified complete by the Engineer.

The Contractor should initiate any request for release of contractor retainage. The Project Engineer should not initiate release of contractor retainage.

Procedure and assigned responsibilities:

Contractor

· Submit a “Request for Early Release of Retained Funds” Form 830246 (https://iowadot.seamlessdocs.com/sc/) in Signature Drawer in Doc Express and sign. This form may also be found at: https://iowadot.gov/construction_materials/Inspection-tool#4871265-administration

· The request shall include a sworn statement, signed by the Contractor, that the notice was given to all subcontractors and material suppliers at least 10 calendar days prior to the date of the request. The “Request for Early Release of Retained Funds” Form 830246 shall be used (https://iowadot.seamlessdocs.com/sc/).

· Shall provide a statement to every subcontractor and material supplier that the Contractor intends to request release of contractor retainage. In accordance with Section 26.13 the notice shall be similar to the following:

You are hereby notified that name of contractor will be requesting an early release of funds on a public improvement project or a highway, bridge, or culvert project designated as [name of project] for which you have or may have provided labor or materials. The request will be made pursuant to Iowa Code section 26.13. The request may be filed with the [name of governmental entity or department] after ten calendar days from the date of this notice. The purpose of the request is to have [name of governmental entity or department] release and pay funds for all work that has been performed and charged to [name of governmental entity or department] as of the date of this notice. This notice is provided in accordance with Iowa Code section 26.13.

Project Engineer

Acting on the contractor’s request the engineer will:

1. Confirm criteria have been satisfied, including receipt of the signed statement from the Contractor.

2. Fill out center section of “Request for Early Release of Retained Funds” form using markup feature in Doc Express. Contact the Finance Bureau and inquire if any claims are on file. If 573 Claims have been filed, retain twice the number of claims. If there are no claims, the entire amount of contractor retainage is to be released except for $1.00 per project on the contract. This $1.00 per project is required to be retained due to limitations in the Department’s accounting system.

3. Sign “Request for Early Release of Retained Funds” form in Doc Express. Do not submit the FieldManager Retainage Release voucher (RR) currently. Construction and Materials Bureau staff will contact the project engineer and advise when the voucher is to be transmitted.

4. Provide the Contractor a written explanation, within 30 days of their request, for denying any amounts requested.

District Construction Engineer

The DCE reviews Request form and, if approved, signs the form in Doc Express.

Construction and Materials Bureau

The Construction and Materials Bureau will advise the Project Engineer after the appropriate time has elapsed to submit an electronic voucher in order to generate the release of retained funds.

Other items to note are:

· No entries for item progress or working day charges or approval of contract modifications are allowed on the Retention Release voucher

· For multiple project contracts, each project must have a checkmark in the “create voucher” box in the voucher tab of the estimate screen.