Chapter 55

COL1201065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 1CHAPTER 55 PREV AILING WAGES IN PUBLIC CONTRACTS § 55101. Rate of W ages for Laborers & Mechanics. § 55102. Termination of W ork on Failure to Pay Agreed W ages: Completion by Govt. § 55103. Payment of W ages by Treasurer of Guam: Listing of Contractors in V iolation. § 55104. Effect on Other Laws. § 55105. Effective Date. § 55106. Suspension During Emergency . § 55107. Application of Chapter Regardless of Means by Which Contract was En tered Into. § 55108. Regulations Governing Contractors & Subcontractors. § 551 01. Rate of Wages for Laborers & Mechan ics. (a) The advertised specifications for every contract to which the government of Guam is a party , for construction, alteration, or repair, including painting and decorating, of public buildings or public works o f the gover nment of Gua m and which required or involves the employment of mecha nics or laborers, or both, shall contain a provision stating the minimum wages to be paid various classes of laborers and mechanics, which shall be based upon the wages that wi ll be deter mined by the Director of Labor to be prevailing for the corresponding

g the minimum wages to be paid various classes of laborers and mechanics, which shall be based upon the wages that wi ll be deter mined by the Director of Labor to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract on Guam; and every contract based on these specifications shall contain a stipula tion that the contractor or his subcontractor shall pay all mechanics and labor ers employed directly upon the site of the work, unconditional ly and not less often than once a week, and without subsequent deduction or rebate on any account, the full amoun ts accrued at time of payment, computed at wage rates not less than those stated in the advertised specifi cations, regardless of any contractual relation ship which ma y be alleged to exist between the contractor or subcon tractor and such laborers and me chanics, and that the scale of wages to be paid shall be posted by the contractor in a prominent and easily accessible place at the site of the work; and the further stipulation that there may be withheld from the contractor so much of accrued payments as may be considered necessary by the contracting

sily accessible place at the site of the work; and the further stipulation that there may be withheld from the contractor so much of accrued payments as may be considered necessary by the contracting officer to pay to laborers and mechanics employed by the contrac tor or any subcontractor on the work the differ ence between the rate of wages required by the contract to be COL1201065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 2paid laborers and mechanics on th e wor k and the rate of wages received by such laborers and mechanics and not refunded to the contractor, subcontractor, or their agents. (b) As used in this Chapter, the term wages, scale of wages, wage rates, minimum wages, and prevailing wages shall i nclude: (1) the basic hourly rate of pay; and (2) the amount of --- (A) the rate of contribution irrevoca bly made by a contractor or subcontractor to a trustee or to a third person pursuant to a fund, plan, or pro gram; and (B) the rate of costs to the co ntractor or sub contractor which ma y be reasonably anticipat ed in providing benefits to labor ers and mechanics pursuant to an enforce able commitment to carry out a financially responsible plan

co ntractor or sub contractor which ma y be reasonably anticipat ed in providing benefits to labor ers and mechanics pursuant to an enforce able commitment to carry out a financially responsible plan or program which was communicated in writing to the labor ers and mechanics affected, for medical or hospital care; pensions on retirement or death; compensa tion for injuries or illness resulting from occupa tional activity , or insurance to provide any of the foregoing; for unemployment benefits; life insur ance; disability and sickness insurance; or accident insurance; for vacation and holiday pay; for defraying costs of ap prenticeship or other similar programs; or for other bona fide fringe benefits; but only wher e the contractor or subcontractor is not require d by Federal of Guam law to provide any such benefits: Provided , that the obligation of a contractor or subcon tractor to make payment in accordance with the prevailing wage determinations of the Dir ector of Labor, insofar as this Chapter, and other acts incorporating this Chapter by refer ence are concerned, may be discharged by the making of payments in cash, by the making of contributions of a type referred to in

ar as this Chapter, and other acts incorporating this Chapter by refer ence are concerned, may be discharged by the making of payments in cash, by the making of contributions of a type referred to in paragraph (2)(A), or by the assumption of an enforceable commitment to bear the costs of a plan or program of a type referred to in paragraph (2)(B), or any combination thereof, wher e the aggr egate of any such payments, contributions, and costs is not less than the rate of pay described in paragraph (1) plus the amount referred to in paragraph (2). COL1201065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 3In deter mining the overtime pay to which the laborer or mechanic is entitled under any federal or territorial law , his regular or basic hourly rate of pay (or other alternative rate upon which premiu m rate of overtime compensation is comput ed) sh all be deemed to be the rate computed under paragraph (1), except that where the amount of payments, contributions, or costs incurred with respect to him exceeds the pre vailing wage applicable to him under this Chap ter, such regular or basic hourly rate of pay (or such other alternative rate) shall be arrived at

or costs incurred with respect to him exceeds the pre vailing wage applicable to him under this Chap ter, such regular or basic hourly rate of pay (or such other alternative rate) shall be arrived at by deducting from the amount of payments, contributions, or costs actually incurred with respect to him, the amount of contributions or costs of the type described in paragraph (2) actually incurr ed with respect to him, or the amount determined under paragraph (2) but not actually paid, whichever amount is greater . SOURCE: GC § 10300 added by P .L. 10 -143. § 55102. T ermination of W ork on Failure to Pay Agreed Wages: Completion by Govt. Every cont ract within the scope of this Chapter shall contain the further provision that in the event it is found by the contracting officer that any laborer or mechanic employed by the contractor has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid as aforesaid, the government of Guam may , by written notice to the contrac tor, termi nate his right to proceed with the work or such part of the work as to which there has been a failure to pay said required wages, and toprosecute the work to

written notice to the contrac tor, termi nate his right to proceed with the work or such part of the work as to which there has been a failure to pay said required wages, and toprosecute the work to comple tion by contract or otherwise, and the contractor and his sureties shall be liable to the government of Guam for any excess costs occasioned the government of Guam ther eby. SOURCE: GC § 10301 added by P .L. 10 -143. § 55103 . Payment of Wages by T reasurer of Guam: Listing of Contractors in Violation. (a) The Treasurer of Guam is authorized and direct ed to pay directly to labor ers and mechanics from any accrued payments withheld under the terms of the contract any wages foun d to be due laborers and mechanics pursuant to this Chap ter, and the Treasurer is further authorized and is directed to distribute a list to all departments of the government of Guam giving the names of persons or firms whom he has found to have disregard ed their obligations to employees and subcontrac -COL1201065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 4tors. No contract shall be awarded to the persons or firms appearing on this list, or to any firm, corporation, partner

COL1201065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 4tors. No contract shall be awarded to the persons or firms appearing on this list, or to any firm, corporation, partner ship, or associ ation in which such persons or firms have an interest, until three year s have elapsed from the date of publication of the list containing the names of such persons or firms. (b) If the accrued payments withheld under the terms of the contract, as aforesaid, are insufficient to reimburse all the laborers and mechanics, with respect to whom there has been a failure to pay the wages required pursuant to this Chapter, such laborers and mechanics shall have the right of action or of intervention against the contractor and his sureties conferred by law upon persons furnishing lab or and materials, and in such proceedings it shall be no defense that such laborers and mechanics accept ed or agreed to accept less than the required rate of wages or voluntarily made refunds. SOURCE: GC § 10302 added by P .L. 10 -143. § 55104. Effect o n Other Laws. This Chapter shall not be construed to supersede or impair any authority other wise granted by law to pro vide for the establishment

GC § 10302 added by P .L. 10 -143. § 55104. Effect o n Other Laws. This Chapter shall not be construed to supersede or impair any authority other wise granted by law to pro vide for the establishment of specific wage rates. SOURCE: GC § 10303 added by P .L. 10 -143. § 55105. Effective Date. This Chapter s hall take effect 30 days after March 31, 1970, but shall not affect any contract then existing or any contract that may thereafter be entered into pursuant to invitations for bids that are out - standing on March 31, 1970. SOURCE: GC § 10304 added by P .L.10-143. § 55106. Suspension During Emergency . In the event of a national emergency , the Governor is authorized to suspend the provisions of this Chapter . SOURCE: GC § 10305 added by P .L. 10 -143. § 55107. Application of Chapter Regardless of Means by W hich Contract was Entered Into. The fact that any contract authorized by any Act is entered into without regard to this Chapter, or upon a cost -plus-fixed -fee basis or COL1201065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 5otherwise without advertising for proposals, shall not be construed to render inapplica ble the provisions of this Chapter, if

065GCA GOVERNMENT OPERATIONS CH.55PREVAIL ING WAGES IN PUBLIC CONTRACTS 5otherwise without advertising for proposals, shall not be construed to render inapplica ble the provisions of this Chapter, if such would otherwise be applicable to such contract. SOURCE: GC § 10306 added by P .L. 10 -143. § 55108. Regulations Governing Contractors & Subcon tractors. The Dir ector of Labor shall make reasonable regulations for contractors and subcontractors engaged in the construction, prosecution, completion, or repair of public buildings, public works, or buildings or works financed in whole or in part by loans or grants from the government of Guam, including a provi sionthat each contractor and subcontractor shall furnish weekly a state ment with respect to the wages paid each employee during the preceding week. SOURCE: GC § 10307 added by P .L. 10 -143. ----------