Public Works Contracting
What you need to know
California law generally defines “public works” as the erection, construction, alteration, repair or improvement, demolition or installation done of any public structure, building, road, or other public improvement of any kind performed under public contract and paid for in whole or in part out of public funds (Public Contract Code §1101, Labor Code § 1720). Public works (PW) includes construction activities and certain maintenance activities.
All workers employed on a public works project in California must be paid no less than the applicable state prevailing wage(s) if the total project cost exceeds $1,000 (Labor Code §1771). This requirement applies to, but is not limited to, construction and maintenance contracts for the Housing Authority of the City of Los Angeles (HACLA) Commercial Facilities.
Projects subject to both state and federal prevailing wages require payment of no less than the higher of the two applicable rates.
Public Housing | Federally Funded Construction and Maintenance Activities
The following applies to HACLA projects that exceed $2,000, are solely federally funded, and undertaken for the development, maintenance, and modernization of public housing (PH) for which the federal preemption of state prevailing wages at 24 CFR 965.101 applies.
Construction Activities: Includes PH development and modernization activities which are subject to the Davis Bacon and Related Acts (DBRA) and federal prevailing wages. HACLA solicitations and contracts will identify the federal wage determination(s) that apply to each project. Federal prevailing wages are determined by the U.S. Department of Labor (DOL) and published at: SAM.gov. When applicable, a covered worker employed on a project must be paid no less than the federal prevailing wage rate(s) corresponding to the type of work performed by the individual. Workers covered by the DRBA are those performing physical or manual labor on the project, such as carpenters, electricians, laborers, as well as apprentices, helpers, working foreman, etc.
Routine and Non-Routine Maintenance Activities: Workers employed on a project must be paid no less than the applicable (Non) Routine Maintenance wage(s) approved by the U.S. Department of Housing and Urban Development (HUD) for the period in which work is performed. These wages are posted on HACLA’s Public Works Labor Compliance website under PH (Non)Routine Activities — Maintenance Wages. Routine maintenance wages apply to routine and minor repairs, whereas non-routine maintenance wages apply to work that is substantial in scope and cost, specifically for the replacement of like-kind items (in terms of quality or grade) due to wear and tear. For more information, see 24 CFR 905.200(b)(5). HACLA solicitations and contracts will identify which of the HUD-approved maintenance wages (routine or non-routine) applies to the project.
Section 8 Housing | Construction Activity Performed in Connection with Section 8 Vouchers
Construction projects with nine (9) or more Section 8-assisted units require the payment of no less than the applicable federal prevailing wages when Project Base Vouchers (PBVs) are awarded through:
- an Agreement to Enter into a Housing Assistance Payment (AHAP) contract; or a
- Housing Assistant Payment (HAP) contract and Rental Assistance Demonstration (RAD) contract, which requires that federal prevailing wages apply to a construction project initiated within the first 18 months of contract execution.
The federal prevailing wages and labor laws applicable to a project will be identified in the voucher agreement. If contracting or construction activity (including demolition) is expected to begin prior to execution of the voucher agreement, HACLA requires that property owner and developer consult with HACLA before solicitation to identify the applicable federal prevailing wage determination and the required HUD federal labor standards contract form(s).
Awarding Body and Additional Contractor Responsibilities
The Awarding Body (AB) includes a property owner, firm, or agency that directly awards a PW contract to a general contractor (prime). The AB is responsible for ensuring that applicable prevailing wages and PW labor laws are included in all covered solicitations and (sub)contracts. (Sub)contractors share this responsibility and must ensure PW compliance throughout the project.
Where a PW construction project exceeds $25,000 — or a PW maintenance project exceeds $15,000 — (sub)contractors are responsible for registering with the Department of Industrial Relations (DIR) prior to bidding and receiving a contract award. If awarded the contract, the (sub)contractor must maintain active registration until their work is completed. The AB is responsible for vetting the (sub)contractor(s) and ensuring each is registered with the Department of Industrial Relations (DIR). The AB is also responsible for registering the project with the DIR within 30 days of contract award, but no later than the first day workers commence project activities. AB must comply and enforce the requirements of California Code, LAB 1771.1. For more information, see Public Works Contractor Registration and Awarding Body Responsibilities.
When HACLA is the Awarding Body: HACLA will determine and identify in its solicitation and contracts whether a project is subject to public works, applicable labor laws, wage determinations, and will register covered projects with the DIR.
When an (A)HAP Owner (or Grant Partner/Recipient) is the Awarding Body: The party is responsible for the AB activities and seeking guidance from HACLA prior to solicitation, contracting, and construction to ensure compliance.
Contracting and Compliance Forms
- Public Works Labor Compliance Forms, Guides, and Additional Resources
Questions regarding labor compliance should be directed to the Labor Compliance Administrator at LaborCompliance@hacla.org.
Please visit the Department of Industrial Relations Information Page for additional information.