Office of Labor Relations 

LABOR RELATIONS LETTERS

 

Date: November 15, 2006 Letter No. LR 2006-03 

SL: Distribution: W-3-1; R-1 (Regional Labor Relations Officers); R-3-1 (RC); R-6, R-6-2; R-7, R-7-2, R-9 

(Labor Relations) 

Subject: Incorporation of Federal labor standards provisions and prevailing wage 

decisions into bid specifications and contracts 

I. Purpose 

II. Federal labor standards provisions (HUD Forms) 

III. Federal prevailing wage decisions 

IV. Methods of incorporation 

I. Purpose 

 The purpose of this Letter is to explain HUD policy and to provide guidance for HUD 

staff and program participants regarding acceptable methods for incorporating Federal labor 

standards clauses and prevailing wage decisions into bid specifications and contracts for 

construction work subject to Davis-Bacon wage rates and maintenance work subject to 

HUD-determined prevailing wage rates. 

 Many HUD programs require the payment of Federal prevailing wage rates. Covered 

construction work is subject to prevailing wage rates determined by the Department of Labor 

(DOL) pursuant to the Davis-Bacon Act. Covered maintenance work (e.g., public and 

Indian housing operations) is subject to prevailing wage rates determined or adopted by 

HUD. 

 When covered construction or maintenance work will be performed by contract, the 

agency or other entity contracting for the work must incorporate certain mandatory Federal 

labor standards provisions and the applicable Federal wage decision in bid specifications and 

contracts. This Letter will discuss the acceptable means by which these provisions and wage 

decisions may be incorporated into these documents. 1

II. Federal labor standards provisions (HUD Forms) 

 HUD has developed forms which contain the contract labor standards provisions required 

for construction work covered by Davis-Bacon wage rates, and for maintenance work 

covered by HUD wage rates. These forms are available on-line at HUDClips 

(www.hudclips.org/cgi/index.cgi), or in hard copy from HUD’s Customer Service Center at 

 

1

 Note that for the Indian Housing Block Grant program, Federal labor standards provisions and Federal wage decisions are not 

applicable to contracts that are covered by tribally-determined prevailing wage rates. 
Page 2 of 4 Letter No. LR 2006-03

(800)767-7468. 

 These HUD forms are: 

(1) HUD-2554, Supplementary Conditions to the Contract for Construction [Housing 

programs – Davis-Bacon wage rates] 

(2) HUD-4010, Federal Labor Standards Provisions [Community Planning and 

Development programs – Davis-Bacon wage rates] 

(3) HUD-5370, General Conditions of the Contract for Construction [Public Housing 

programs (must be used where the contract value is greater than $100,000) – DavisBacon wage rates] 

(4) HUD-5370-EZ, General Conditions for Small Construction/Development Contracts 

[Public Housing programs (may be used in lieu of the HUD-5370 where the contract 

value is greater than $2,000 but no more than $100,000) – Davis-Bacon wage rates] 

(5) HUD-5370-C, General Conditions for Non-Construction Contracts, Section II 

[Public Housing programs – HUD wage rates] 

Note: The Offices of Labor Relations and Native American Programs are working on HUD 

forms that will contain Federal labor standards provisions specific to Indian housing 

programs. Once approved and issued, these forms will also be available at HUDClips. 

III. Federal prevailing wage decisions 

 This Letter discusses two types of Federal prevailing wage decisions: Davis-Bacon wage 

decisions that are applicable to construction work; and HUD wage decisions that are 

applicable to public and Indian housing maintenance work. 

 Davis-Bacon wage decisions are available on-line at www.wdol.gov or may be 

obtained through HUD’s Labor Relations staff. 

 HUD wage decisions are not yet available on-line through HUD. These may be 

obtained in hard-copy from HUD’s Labor Relations staff. 

IV. Methods of incorporation 

 The labor standards clauses and wage decisions may be incorporated into bid 

specifications and contracts by one or more of the following methods: 
Page 3 of 4 Letter No. LR 2006-03

(1) Incorporation by “hard-copy”. The applicable HUD form and wage decision may be 

physically bound/attached to the contract (and bid specifications, if applicable) as 

issued by HUD (HUD forms and HUD wage decisions) or DOL (Davis-Bacon wage 

decisions). 

(2) Incorporation into other documents. The clauses/text of the applicable HUD form 

and wage decision may be incorporated into other documents (e.g., into the program 

participant’s own forms) that are bound/attached to the contract (and bid 

specifications, if applicable) or incorporated by reference (see paragraph 3, below). 

The HUD program participant (e.g., State, local, or tribal agency; owner/developer) 

is responsible for the accuracy of the content. In all cases, the requirements imposed 

by the applicable HUD form and wage decision remain in force. 

(3) Incorporation by reference. The applicable HUD form and wage decision, or other 

documents containing the HUD form clauses/wage decision, may be incorporated 

into the contract and any bid specifications by reference. The reference must be 

specific as to the exact form or clauses that are incorporated, and where the form or 

clauses may be accessed or obtained (e.g., HUDClips, agency web site). DavisBacon wage decisions may be incorporated by reference to www.wdol.gov and to 

the specific number, modification number, and date of the applicable wage decision. 

HUD wage decisions are not available at HUD’s web site; however, a public or 

Indian housing agency may post any applicable HUD wage decision to its own web 

site and reference that site. Program participants must provide hard-copies of any 

referenced forms, clauses, and/or wage decisions on request. 

 Any questions regarding this Letter should be directed to the Regional or Field HUD 

Labor Relations staff responsible for the jurisdiction involved. A list of Labor Relations 

staff and contact information is available at the Office of Labor Relations web site: 

www.hud.gov/offices/olr 

 /S/ 

 Edward L. Johnson 

 Director 

 Office of Labor Relations 
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