Grant-Funded Projects · Compliance
Compliance and audit readiness, in plain language
Six requirement families cover most Arizona grant-funded construction. Here's what each one asks for, and what we do about it on site.
- KB1 Licensed
- Bonded & Insured
- SAM.gov Registered
- Davis-Bacon Experienced
- Certified Payroll Capable
- TERO Familiar
Every summary on this page is general educational information. It is not legal, accounting or audit advice — confirm requirements against your specific award terms with your program officer and advisors.
What does audit-ready mean on a grant-funded construction project?
Audit-ready means the documentation supporting every dollar exists at the time the dollar is spent, not reconstructed months later. In practice that is a confirmed wage determination, weekly certified payrolls from every tier, a procurement file that shows how competition happened, change orders with written approvals, and a closeout package indexed so a monitor can find any item in a minute.
Requirement families
What applies, and what it means on site
Davis-Bacon Act
federally assisted construction contracts above the statutory threshold generally require workers to be paid no less than the locally prevailing wages and fringe benefits in the applicable wage determination.
- Confirm applicability and the correct wage determination before bid, not after award
- Correct trade classification for every worker on site
- Posted wage determination and labor standards notices at the jobsite
- Additional classifications requested through the proper conformance process
Certified payroll
on covered projects, contractors and subcontractors typically submit weekly certified payrolls with a signed statement of compliance for every week work is performed.
- Weekly submission for the prime and every tier of subcontractor
- Signed statement of compliance accompanying each payroll
- Support for fringe benefit and apprentice rates
- Retention of records for the period your award requires
Uniform Guidance procurement (2 CFR 200)
non-federal entities must follow their own documented procurement procedures while conforming to the federal standards for competition, methods of procurement and cost or price analysis.
- Written procurement procedures applied consistently
- Full and open competition with a documented solicitation record
- Independent cost estimate and cost or price analysis in the file
- Conflict of interest and contractor responsibility documentation
Build America, Buy America (BABA)
certain federal infrastructure awards require iron, steel, manufactured products and construction materials used in the project to be produced in the United States unless a waiver applies.
- Early material sourcing review against the award terms
- Supplier certifications collected at submittal, not at closeout
- Waiver pathways identified before a long-lead order is placed
- Documentation packaged for the funder's file
Section 3 (HUD-assisted work)
HUD-funded construction may carry obligations to direct employment and contracting opportunities to low- and very low-income residents and the businesses that employ them.
- Labor hour benchmarks tracked from the first pay period
- Outreach and hiring documentation retained
- Section 3 business concern participation identified during buyout
- Reporting formatted for your grantee submission
TERO (Tribal Employment Rights Ordinances)
many tribal nations administer employment rights ordinances that govern hiring preference, fees, permitting and dispute resolution for construction performed on tribal land.
- TERO office engagement before mobilization
- Preference hiring and referral processes followed as written
- Applicable fees and permits budgeted in the estimate, not absorbed as a change order
- Coordination with tribal council and community priorities throughout
Free download
Grant-Funded Construction Compliance Checklist
The compliance items to confirm before you solicit a single bid on federally assisted construction.
- Award terms that drive labor and material rules
- Documentation to open a project file with
- Deadlines that cannot be extended for convenience
Free download
Davis-Bacon & Certified Payroll Guide
How prevailing wage determinations, classifications and weekly certified payroll actually work on a jobsite.
- Confirming the applicable wage determination
- Classification errors that create findings
- Weekly submission and retention workflow
Free download
Uniform Guidance Procurement Guide (2 CFR 200)
A plain-language walkthrough of running a construction procurement that survives monitoring.
- Procurement methods by dollar threshold
- The independent cost estimate requirement
- Building the solicitation record as you go
Compliance questions we get asked
General information only. Requirements depend on your funding source and award terms — nothing here is legal, accounting or audit advice. Always confirm specifics with your program officer and your own advisors.
Commercial
Send us the award language
We'll read the labor standards, procurement and reporting terms and tell you what they mean for scope, schedule and cost.
KB1 Licensed, Bonded & Insured · Arizona's Most Referred General Contractor.
You'll know what's happening, what it costs, and what comes next.