have ceased. HUD or its designee may, after written notice tc the
<br />contractor, disburse such amounts withheld for and on account of the
<br />contractor or subcontractor to the respective employees to whom they
<br />are due. The Comptroller General shall make such disbursements in
<br />the case of direct Davis -Bacon Act contracts.
<br />3. (i) Payrolls and basic records. Payrolls and basic records relat-
<br />ing thcreta shall be maintained by the contractor during the course of
<br />the work preserved for a period of three years thereafter for all labor-
<br />ers and mechanics working at the site of the work (or under the United
<br />States Housing Act of 1937, or under the Housing Act of 1949, in the
<br />construction or development of the project). Such records shall con-
<br />tain the name, address, and social security number of each such worker,
<br />his or her correct classification, hourly rates of wages paid (including
<br />rates of contributions or costs anticipated for bona fide fringe ben-
<br />c5ts or cash cquivalents thereof of the types described in Section
<br />l(b)(2)(B) of the Davis -bacon Act), daily and weekly number of hours
<br />worked, deductions made and actual wages paid. Whenever the Sec-
<br />retary of Labor has found under 29 CER 5.5 (a)(1)(iv) that the wages
<br />of any laborer or mechanic include the amount of any costs reason-
<br />ably anticipated in providing benefits under a plan or program de,
<br />scribed in Section l(b)(2)(B) of the Davis -Bacon Act, the contractor
<br />shall maintain records which show that the commitment to provide
<br />such benefits is enforceable, that the plan or program is financially
<br />responsible, and that the plan or program has been communicated in
<br />writing to the laborers or mechanics affected, and records which show
<br />the costs anticipated or the actual cost incurred in providing such ben-
<br />efits. Contractors employing apprentices or trainees under approved
<br />programs shall maintain written evidence of the registration of ap-
<br />prenticeship programs and certification of trainee programs, the reg-
<br />istration of the apprentices and trainees, and the ratios and wage rates
<br />prescribed in the applicable programs. (Approved by the Office of
<br />Management and Budget under OM B Control Numbers 1215-0140
<br />and 1215-0017.)
<br />(ii) (a) The contractor shall submit weekly for each week in which
<br />any contract work is performed a copy of all payrolls to HUD or its
<br />designee if the agency is a party to the contract, but if the agency is
<br />not such a party, the contractor will submit the payrolls to the appli-
<br />cant sponsor, or owner, as the case may be, for transmission to HUD
<br />or its designee. The payrolls submitted shall set out accurately and
<br />completely all of the information required to be maintained under 29
<br />CFR Part 5.5(a)(3)(i). This information may be submitted in any form
<br />desired. Optional Form WH -347 is available for this purpose and
<br />may be purchased from the Superintendent of Documents (Federal
<br />Stock Number 029-005-00014-1), U.S. Government Printing Office,
<br />Washington, DC. 20402. The prime contractor is responsible for the
<br />submission of copies of payrolls by all subcontractors, (Approved by
<br />the Off ice of Management and Budget under OMB Control Number
<br />1215-0149.)
<br />(b) Each payroll submitted shall be accompanied by a "Statement of
<br />Compliance;' signed by the contractor or subcontractor or his or her
<br />agent who pays or supervises the payment of the persons employed
<br />under the contract and shall certify the following:
<br />(1) That the payroll for the payroll period contains the information
<br />required to be maintained under 29 CFR Part 5.5 (a)(3)(i) and that
<br />such information is correct and complete;
<br />(2) That each laborer or mechanic (including each helper, apprentice,
<br />and trainee) employed on the contract during the payroll period has
<br />been paid the full weekly wages earned, without rebate, either di-
<br />rectly or indirectly, and that no deductions have been made either
<br />directly or indirectly from the full wages earned, other than permis-
<br />sible deductions as set forth in 29 CFR Part 3;
<br />Previous edition is obsoleta
<br />(3) That each laborer or mechanic has been paid not less than the
<br />applicable wage rates and fringe benefits or cash equivalents for the
<br />classification of work performed, as specified in the applicable wage
<br />determination incorporated into the contract.
<br />(c) The weekly submission of a properly executed certification set
<br />forth on the reverse side of Optional Form WH -347 shall satisfy the
<br />requirement for submission of the "Statement of Compliance" required
<br />by paragraph A.3.(ii)(b) of this section.
<br />(d) The falsification of any of the above certifications may subject
<br />the contractor or subcontractor to civil or criminal prosecution under
<br />Section 1001 of Title 18 and Section 231 of Title 31 of the United
<br />States Code.
<br />(iii) The contractor or subcontractor shall make the records required
<br />under paragraph A,3.(i) of this section available for inspection, copy-
<br />ing, or transcription by authorized representatives of HUD or its des-
<br />ignee or the Department of Labor, and shall permit such representa-
<br />tives to interview employees during working hours on the job. If the
<br />contractor or subcontractor fails to submit the required records or to
<br />make them available, HUD or its designee may, after written notice to
<br />the contractor, sponsor, applicant or owner, take such action as may
<br />be necessary to cause the suspension of any further payment advance,
<br />or guarantee of funds. Furthermore, failure to submit the required
<br />records upon request or to make such records available may be grounds
<br />for debarment action pursuant to 29 CFR Part 5.12.
<br />4. Apprentices and Trainees.
<br />(i) Apprentices. Apprentices will be permitted to work at less than
<br />the predetermined rate for the work they performed when they are
<br />employed pursuant to and individually registered in a bona fide ap-
<br />prertticeship program registered with the U.S. Department of Labor,
<br />Employment and Training Administration, Bureau of Apprenticeship
<br />and Training, or with a State Apprenticeship Agency recognized by
<br />the Bureau, or if a person is employed in his or her first 90 days of
<br />probationary employment as an apprentice in such an apprenticeship
<br />program, who is not individually registered in the program, but who
<br />has been certified by the Bureau of Apprenticeship and Training or a
<br />State Apprenticeship Agency (where appropriate) to be eligible for
<br />probationary employment as an apprentice. The allowable ratio of
<br />apprentices to journeymen on the job site in any craft classification
<br />shall not be greater than the ratio permitted to the contractor as to the
<br />entire work force under the registered program, Any worker listed on
<br />a payroll at an apprentice wage rate, who is not registered or other-
<br />wise employed as stated above, shall be paid not less than the appli-
<br />cable wage rate on the wage determination for the classification of
<br />work actually performed. In addition, any apprentice performing work
<br />on the job site in excess of the ratio permitted under the registered
<br />program shall be paid not less than the applicable wage rate on the
<br />wage determination for the work actually performed. Where a con-
<br />tractor is performing construction on a project in a locality other than
<br />that in which its program is registered, the ratios and wage rates (ex-
<br />pressed in percentages of the journeyman's hourly rate) specified in
<br />the contractor's or subcontractor's registered program shall be ob-
<br />served. Every apprentice must be paid at not less than the rate speci-
<br />fied in the registered program for the apprentice's level of progress,
<br />expressed as a percentage of the journeymen hourly rate specified in
<br />the applicable wage determination. Apprentices shall be paid fringe
<br />benefits in accordance with the provisions of the apprenticeship pro-
<br />gram. if the apprenticeship program does not specify fringe benefits,
<br />apprentices must be paid the full amount of fringe benefits listed on
<br />the wage determination for the applicable classification. if the Ad-
<br />ministrator determines that a different practice prevails for the appli-
<br />cable apprentice classification, fringes shall be paid in accordance
<br />Page 2 of 4
<br />form HUD -4010 (2164)
<br />ref. Handbook 1344.1
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