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Owner's Responsibility

Make sure we have a payroll submitted for every week even if they were inactive. If a Contractor is "inactive" for a period of time, he MUST submit a "Statement of Compliance" form stating that no work has been completed from MM/DD/YY (Day After Day Last Worked) TO MM/DD/YY (Day Prior To Day Work Began Again). When work begins again, the Contractor should begin submitting payrolls again beginning with the next payroll number.

We must do the following:

  1. Review and approve all weekly payrolls from every prime contractor (and his subcontractors) involved with a funded project.
  2. Make certain every weekly payroll is properly certified. (See sample payrolls and instructions).
  3. Keep all approved payrolls with the other project records available for review by OPC and the Labor Department representatives for three years after the project's completion. Do not submit payrolls to the OPC.
  4. Investigate and report all labor complaints.
  5. Violations of the Labor Standard must be dealt with in accordance with the provisions of the "Labor Standards", EPA Form 5720-4(5-73).
  6. The owner must make sure that everyone involved understands and fulfills properly all the Labor Standards requirements to avoid penalties and the withholding of loan funds.

Your certification of compliance with the above requirements is deemed incorporated in the CERTIFICATION, block 12 of your request for payment (Form SF-271). You should not request payment or execute the request for payment form until you have assured yourself that all of the requirements of the "Labor Standards Provisions for Federally Assisted Construction Contracts" have been met.

Payrolls are to be mailed to us by the Contractor each week. The Contractor should send two (2) or three (3) copies of the payrolls to the Engineer. These need to be checked as soon as we receive them. The payrolls must be checked BEFORE an estimate can be approved. Check each payroll thoroughly to make sure that the signature on the payroll is an authorized signature, for this project. Check the payroll number and the "For Week Ending" against the last payroll received to be sure they're in consecutive order.

Turn to The Wage Determination Sheet in the contract and check the wage rate for each employee. The Contractor MUST BE paying each employee the minimum shown in the Contract Documents for their job description. We do not need to check the Supervisor's wages.

We must have the following information on each Employee before a payroll can be approved:

  1. Employee's Name
  2. Employee's Address
  3. Employee's Social Security Number

Check the figures on the calculator. Check the totals of net and gross pay, total of hours, etc. Attach the tape to the work copy of the payroll and initial the tape. If there is a discrepancy in the figures, contact the Contractor.

If there are more than 5 deductions and a deduction is carried over to the miscellaneous column, show total deductions in that column and in the attachment to the payroll. Describe the deductions contained in the "Other" column.

If an Employee has any deductions (except for taxes) ( example-garnishments, child support, loan) taken out of his payroll check, we must to have something in the file signed by the employee that states the Contractor has permission to take an authorized amount from the employee's payroll check. Send the deduction authorizations to the Administrator if it is on a CDBG job. Keep a copy of the authorizations for us on the righthand side of the payroll file.

Put our copy of the payroll on top of the "Work Copy" on the right-hand side of the Payroll file. The distribution letter for the payrolls goes on the left-hand side of the Payroll file. SEE FORM LETTER SECTION (Page 88)

Copies of the letter and the payroll go to the following:

  1. Town Clerk or Mayor
  2. Administrator

If the Funding Agency is the OPC put one copy on the left side of file for OPC in case they should need it.