Why is contract compliance important?
Contract compliance is a critical element of the City of Springfield contract management strategy, and a cooperative compliance system will benefit your business in various ways.
Firstly, failing to meet compliance standards can cause your company’s reputation to be tarnished, and it can jeopardize the relationships you’ve built already.
More often than not, regulations are there to protect parties to a contract and establish trust. If your contracts miss the mark, it can undermine that trust and reputation altogether.
There's also the risk of losing time and money. Poor contract execution invites fines, penalties and damages in the event of a contract breach, by failing to comply with Federal, Commonwealth and Municipal laws.
In short, effective contract compliance practices can eliminate multiple risks, including reputational damage, legal action and poor customer experience. That’s why it’s critical your business work closely with the Department of Technical Assistance and Compliance.
What services does the Contract Compliance offer?
Contract Compliance offers contractor training, prevailing wage monitoring, compliance, enforcement, Section 3 monitoring, and resident, Minority, Women, Veteran and Disadvantaged Business Enterprise oversight.
By providing quick and easy access to accurate information, the DTAC helps to ensure that contractors avoid making mistakes. The emphasis of the Labor Compliance Section is on providing education, assistance and direction to contractors doing work for the City. The DTAC offers seminars upon request, custom-designed to address issues of interest to individuals or groups of contractors who work on City public works projects.
The DTAC helps to "level the playing field" by ensuring that all contractors are paying correct rates and "playing by the same rules". Contractors who would hope to gain advantage by underpaying their own workers face stiff penalties.
What about Certified Payrolls?
Certified Payrolls provide a true and accurate record of the labor hours worked on a project. They are signed under penalty of perjury and are due weekly from the prime contractor and ALL subcontractors, owner-operators, vendors and suppliers who provide personnel to work at the job site. Prime contractors are responsible for ensuring that ALL subcontractors, etc. submit the required payroll documents.
How much should the contractor pay me for working on a City job?
The amount a contractor pays a worker depends on the wage order, which is part of the contract. The Prevailing Wage Law requires a contractor to post wage rates on site so that all workers have access to them. If there is no wage order posted at your construction site, please contact our office at firstname.lastname@example.org.
How do I file a prevailing wage complaint?
If you know of a prevailing wage violation, you may send an e-mail to the Department of Technical Assistance and compliance at email@example.com., with as many details as possible, and someone will contract you.
What are the fringe benefits?
A fringe benefit is a compensation, in addition to salary or wages, paid to a third party plan or fund, by the contractor, on behalf of the employee. Examples include health insurance, retirement plans, and life insurance. If an employee does not receive fringe benefits, paid to a third party plan or fund, the employer must pay this money in cash as a part of the entire compensation package.
Is there a different pay rate for overtime?
Yes; however, each occupational title has specific guidelines for overtime and holiday pay. Please look at your annual wage order, posted on the work site, for information about each occupational title.
What is the prevailing wage?
The prevailing wage is the minimum wage amount that workers on Springfield public works construction projects must be paid. It is required by law and determined through surveys conducted by the Division of Labor Standards as to the number of actual hours worked at each wage rate paid to workers in each particular occupational title (classification/trade).
Who should receive prevailing wage rates?
All construction personnel who actually work on a project are required to receive prevailing wages. Professional or support personnel such as architects, clerical staff or security guards are not subject to prevailing wages. Bona fide material suppliers who deliver materials to a job site are not subject to payment of prevailing wages. However if they then begin to help with the construction/installation, they are covered from that point forward.