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Grant Management

Davis-Bacon Act

In projecting your budget, be advised that any construction or renovation projects funded by federal funds, in whole or in part, are subject in their entirety to the Davis-Bacon Act as amended, 40 U.S.C. 276a-276a-5. Grant recipients are required by law to furnish assurances to the Secretary of Labor that all laborers and mechanics employed by contractors or subcontractors on Endowment-supported construction projects shall be paid wages at rates that are not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor.

Additional information is available by contacting the U.S. Department of Labor, Wage and House Division, Division of Contract Standards and Operations, 200 Constitution Avenue, NW, Washington, D.C., 20210.

Bid Guarantees and Bonding Requirements

Grantees whose contracts for construction or facility improvements exceed $100,000 are required to obtain a bid guarantee from each bidder equivalent to 5 percent of the bid price. The grantee must also require contractors to have both performance and payment bonds for 100 percent of the contract price (OMB Circular A-110, Subpart C, Section 48(c) and OMB Circular A-102, Section _.36 (h)). “The cost-plus-a-percentage-of-cost” or “percentage of construction cost” methods of contracting may not be used.


This page is an excerpt from Responsibilities of Award Recipients