VIII. Labor & Construction

Federal and State Laws govern the wages and working conditions for laborers and mechanics employed under construction contracts funded with State CDBG funds. The application of all Federal and State labor laws is prevalent throughout the entire construction process and not specific to just one component. This section on Labor and Construction is divided into four subsections:

  • applicable state and federal acts,
  • grantee responsibilities prior to the awarding of a construction contract,
  • grantee responsibilities during the construction phase of the contract, and
  • closeout.

All contracts for construction, alteration, rehabilitation, or repair FUNDED IN WHOLE OR IN PART with State CDBG funds, including grant funds passed through to private firms, are subject to federal labor standards. All monies involved in a project, whether State, federal or private funds, are subject to the following labor standards if State CDBG funds are used for some part of a construction project.

It is extremely important for all grantees involved in construction projects to understand the application of these requirements to their projects and assign one person the responsibility for ensuring compliance with them. The grantee must develop compliance procedures so that it will not violate the law.