Collecting and Monitoring Weekly Payrolls on Federal Construction Projects

State and local agencies receiving federal funding for construction projects must comply with federal Davis-Bacon prevailing wage requirements.

Weekly Payrolls Required:  One of the requirements is that agencies collect and monitor the payroll reports of contractors and subcontractors prior to making payment, in order to ensure that workers have been paid federal prevailing wages.

Audit Findings:  The City of Everett, Washington recently was issued an audit finding by the Washington State Auditor's Office for failing to receive payrolls on a weekly basis.  The auditor "found two instances in which the City did not obtain certified payroll until May 2010 for work performed in 2009."  Click here to read the audit finding.

Grays Harbor Transit (Grays Harbor County, WA) also received a similar audit finding when the auditor could not find 71 payroll reports over a five week period in which 26 contractors worked.  Click here to read the audit finding.

Practical Tip:  Make sure that your contractor and all subcontractors are aware of the federal requirement that they pay their workers weekly, and that payrolls must be submitted weekly.  Have systems in place to ensure that you collect and review all payrolls on a timely basis.