During 2008, the City of Toppenish, Washington spent more than $350,000 of a federal FHWA grant to construct a welcome center for the city. However, according to an audit finding by the Washington State Auditor's Office, the city was unaware that federal Davis-Bacon prevailing wage requirements applied.
As a result, the city did not:
- Include language in six contracts advising the contractors that federal prevailing wages needed to be paid.
- Obtain weekly certified payrolls from the contractors and all subcontractors
The city responded to the audit finding that it was developing a comprehensive checklist to help ensure future compliance with federal prevailing wage requirements.
Practical Tip: If you receive any federal funding for a construction project, check the terms of the grant agreement. Most federal funding sources require the payment of federal prevailing wages. Davis-Bacon Act requirements include various contractual and monitoring requirements.
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