Are projects required to comply with the Davis-Bacon Act with respect to construction activities undertaken prior to DOE’s issuance of a loan guarantee?
In accordance with the Davis-Bacon Act and its implementing regulation, at 29 CFR §1.6(g), Davis-Bacon Act must be complied with, beginning with the “construction, prosecution, completion or repair” (as defined in 29 CFR §5.2(j)) of a project, regardless of when the issuance of the DOE loan guarantee has occurred.As such, a Project Sponsor seeking a DOE loan guarantee for a project that has commenced such “construction, prosecution, completion or repair” prior to the issuance of a loan guarantee under Title XVII will have to make any necessary wage adjustments no later than the first disbursement under the guaranteed loan.There is an exception if the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor (DOL) finds that there was no evidence of intent to apply for Federal funding or assistance prior to the start of construction. DOL has provided guidance on the retroactive application of the Davis Bacon Act to projects funded under t
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