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Summary of Major Labor Requirements

The work items being bid are funded by appropriations from the Federal Government to the Housing Authority of the City of Richmond (HACR) and, as such, are subject to HUD requirements for contracts, wages, and general construction conditions. (These documents are HUD-5369, HUD-5369A, and HUD5370; if not included in the bid packet, copies of these documents may be obtained from HACR and will become part of any contract).

A general summary of some of the important requirements of these documents follows. This is not intended to be a complete list of requirements but is for informational and review purposes only to assist contractors in preparing bids and subsequent payment requests and payroll reports.

  1. Wages paid to workers must be at hourly wage rates and fringe benefit levels established by the Dept. of Labor. A summary of rates and classifications is attached.
    1. Every employee must be paid the appropriate hourly wage. If fringe benefits in the listed amount are not paid directly to an approved health and welfare fund, the amount must be added to the hourly wage of the employee and paid directly to the employee.
    2. Every employee shall have withholding for taxes, Medicare, and FICA taken from each paycheck. No employee shall receive gross wages without deductions.
    3. No employee shall be paid per job or piecework unless in excess of the minimum hourly rate listed. All jobs must be bid and paid according to the hourly wage standards and hours worked.
    4. The hourly wage standards do not apply to the owners or officers of a company.
  2. The general contract or prime contractor must complete at least 12% of the project by himself or his employees. The job may not be subcontracted more than 88%. If subcontractors are used, each subcontractor must submit proof to demonstrate the subcontract relationship (contract, incorporation papers, etc.) and a Certificate of Insurance covering general liability and works compensation for the subcontractor and employees. 
    1. The subcontractor shall follow the same wage requirements as above for employees.
    2. If subcontractors hire other subcontractors, all requirements apply. 
  3. Workers on the site will be randomly interviewed by HACR to determine their job classification and wage rates. All workers should be advised of their appropriate classification and hourly wage rates (with or without fringe benefits as applicable) before starting work.
  4. If any workers are listed as apprentices and paid at apprentice rates, an original apprentice certificate for the employee must be submitted to HACR. No apprentice may work without the direct supervision of a journeyman or supervisor nor in excess of the approved ratio.
  5. Payroll summaries (WH-347) or equivalent must be submitted to HACR by contractors and subcontractors covering all workers on the job and must be completely filled out and signed. A sample is attached.
  6. Requirements of Section 3 of the HUD Act of 1968 involving documented efforts to utilize local labor and businesses are applicable to this project. The contractor is advised to review the following "Special Notice to Contractors" and "The Section 3 Clause" portion of the General Conditions that will be incorporated into the contract with the successful bidder.