The Commonwealth of Pennsylvania enacted Act 127 of 2012, known as the Public Works Employment Verification Act (“the Act”) which requires all public work contractors and subcontractors to utilize the Federal Government’s E-Verify system to ensure that all employees performing work on public work projects are authorized to work in the United States. Refer to the DGS website for more information and for the Public Works Employment Verification Form.
The Pennsylvania Department of Labor and Industry, through the Bureau of Labor Law Compliance, determines prevailing wage rates for the construction industry and enforces the rates and classifications under heavy, highway, and building construction projects of $25,000 or more when public funds are involved. For information about the Regulations for Pennsylvania Prevailing Wage Act, see the Prevailing Wage Act website, or contact the Bureau of Labor Law Compliance by telephone at 800-932-0665.
The contractor must complete a Payroll Certification for Public Works Projects each week of the contract. If there is a week that the contractor did not perform any work, he/she is still required to submit a certification on which is written “no work completed during this time period.” The rates on the Payroll Certifications must be compared with the rates as supplied with the bid package. Upon discovery of noncompliance of the Prevailing Wage requirements, there may be an immediate stop payment action on all pending invoices. The contractor will be notified in writing of the noncompliance and given a time limit for resolution. If the issue is not resolved, the Department of Labor and Industry and local wage inspector will be notified. Contractors that intentionally violate the Pennsylvania Prevailing Wage Act (43 P.S. ss 165-11--165-17) may be debarred from contract awards for a period of three years. Downloadable Forms for reporting Weekly Payroll Certificate for Public Works Projects are available at the Pennsylvania Department of Labor and Industry website.
Indiana University of Pennsylvania is exempt from all excise taxes. This also applies to Pennsylvania sales tax; however, any contractor/supplier doing business with the university remains liable for the payment of sales and use tax on all materials and fixtures he/she purchases or uses for the purpose of fulfilling his/her contract, even though the work is being performed for a governmental instrumentality.
Indiana University of Pennsylvania is part of the State System of Higher Education and is an instrumentality of the Commonwealth of Pennsylvania. The sale at retail to a construction contractor of building machinery and equipment that are transferred to the State System of Higher Education may possibly be excluded from some or all sales tax.
Forms and directions on obtaining exclusions from sales taxes may be obtained from any office of the Pennsylvania Department of Revenue.
This program is applicable to all maintenance, repair, alteration, or improvements to existing, and new construction projects.
Minority and women-owned businesses certified by the Department of General Services will be preapproved and are acceptable to the System as MBE/WBE firms. Contractors may also submit other minority and women-owned businesses that other states have certified or by other duly constituted public bodies.
Nonminority contractors will solicit proactively and encourage certified minority business and women business enterprises to submit competitive written bids or quotes for System facility projects. The university further requires all nonminority bidders to document such proactive effort.
Certified minority business and women business enterprises are encouraged to submit bid proposals directly as prime contractors. As MBE/WBE firms, they are not required to provide any documentation regarding proactive solicitation.
It is important to note that the MBE/WBE provisions of the regulations are unique to State System of Higher Education contracts. It is expected that responsive responsible bidders must proactively make a reasonable effort to seek and incorporate a reasonable proportion of participation of certified minority and women business enterprises in each facilities project.
The Construction Contracting Office will review the documentation submitted and perform evaluations which will determine whether or not proactive solicitation and subsequent commitments were made which total the reasonable effort award amount or for which acceptable reasonable explanations were provided.
If accepted by the certified MBE/WBE firm, commitments made at the time of receipt of bids must be maintained throughout the term of the contract, unless a change in commitment to these firms is preapproved by the System.
Program details are included in each bid packet.
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