Is it acceptable under 29 CFR 5.5 for States to require its sub-grantees to obtain independent weekly certification of its and its contractors payroll to ensure compliance with Davis-Bacon?
Yes, it is acceptable. Sub-grantees are not required to have the payrolls certified independently; however, States may require its sub-grantees to obtain independent weekly certification if the State believes there is a high risk of the sub-grantee’s non compliance. It is the State’s ultimate responsibility to review the records and ensure compliance with Davis-Bacon. Payroll must be calculated and paid weekly to employees. Laborers and mechanics are paid on an hourly basis and the DOL wage rate will contain both an hourly rate and an amount for bona fide fringe benefits. This is a question as to whether it is an allowable expense under the Grant.
