FFCM Complaint Prompts Contractor Replacement

The Building Committee for the new high school in Greenfield has voted to drop its original contractor for the $65 million job and begin negotiations with the No. 2 bidder after the FFCM filed a bid protest with the Attorney General’s office. FFCM monitors who scrutinized the application submitted by DEW/MacMillin determined that the application was incomplete and notified the Attorney General’s office. The Building Committee accepted the recommendation of the construction manager selection committee, which opted  to withdraw its support for DEW/MacMillin Co. of New Hampshire in favor of Shawmut Design and Construction, a Boston company.

Legal Landmark: Leases Subject to Competitive Bidding Law

The Supreme Judicial Court has ruled that an agreement between UMass Lowell and a private developer, Brasi Development, for the development, maintenance and long-term lease of a dormitory constituted a contract for public construction subject to the requirements of the competitive bidding law.

In Brasi Development Corp. v. Attorney General & another, the SJC reversed a Superior Court finding that the agreement was a lease and not subject to the competitive bidding law. The Attorney General’s office had earlier reached a contrary decision following a bid protest by the Foundation for Fair Contracting of Massachusetts and the lowest bidder. Considering all the provisions of the lease agreement and RFP, the Court held that the competitive bidding statue, G. L. c 149 §§ 44A-44H, applies to UMass Lowell’s agreement with Brasi to develop and maintain a student dormitory near its campus.

Sewer Cleaner Cited

National Water Main Cleaning Company must pay more than $1 million for intentionally violating Massachusetts’ prevailing wage laws. The Attorney General’s office began investigating National Water Main and its owner, Salvatore F. Perri, after receiving complaints on behalf of workers from the Foundation for Fair Contracting. The AG’s investigation, which covered National Water Main’s work on sewer cleaning, maintenance and repair across the Commonwealth, found that the contractor violated the prevailing wage law by failing to pay the legal rate to employees performing multiple tasks.

National Water Main must pay $506,000 in restitution to a total of 84 employees who worked on various public construction projects from March 2008 to January 2011. The company was also ordered to pay $500,000 in penalties for prevailing wage violations and an additional $50,000 in penalties for failing to submit true and accurate payroll records as required under state law.

According to FFCM executive director, Karen Courtney, “Multiple National Water Main employees on jobs all over the state reported wage violations to the Foundation. Hopefully, this case sends a clear message to contractors that there’s a real cost to breaking the law.”

What’s the Formula for Filing a Complaint?

Dear Compliance Man,

I would like to know how to go about filing a complaint about an employer. I recently learned about a landscaping firm that hires mostly Spanish-speaking workers, many of whom are not aware of prevailing wage requirements. Some of them have worked for the firm for several years, but make only $9-$10 per hour. Because I work with a corporation that does all public work, I am very familiar with state and federal wage laws. What can I do to file a complaint so this can be investigated?

– Concerned in Quincy

Dear Quincy,

Without hearing directly from the workers you mention, there is still quite a bit that can be done to expose this fraud being committed at the expense of the public and the workers themselves.

First of all, I’d like to remind you that in addition to the e-mail you sent, you can call us directly on our fully confidential hotline: 1-877-507-3247. Anytime you (or any construction worker) would like to chat, leave a message – the Foundation for Fair Contracting won’t forget you.

Because the jobs you describe here are public, the contractor has a number of contractual obligations, including submitting payroll records. Once we’ve gathered the necessary evidence, the FFCM is not shy about filing complaints with the Fair Labor and Business Practices Division. The Foundation works directly with you, at no cost, to see that justice is done. And tip-offs like yours are always welcome. For more info on this subject, see the Compliance Man story Fraudulent Payrolls, Shady Unemployment and a Dodgy Employer.

For more commonly asked Compliance Man questions, visit the Compliance Man archives. Send your question to info@ffcm.org.

What Exactly is the FFCM and What Can It Do For Me?

Dear Compliance Man,

I recently received a letter from you people in the mail. It had my name, the company I’ve been working for and the project we’re working on. Then it had the amount of money I guess I’m supposed to be making, but what I am getting is a lot less than that. So I have two questions. First of all, how did you get my name, and second, how do I get the amount of money that I should be getting?

–Real confused in Reading

Dear Reading:

Thanks for writing! The Foundation For Fair Contracting of Massachusetts sends out tens of thousands of letters like the one you describe to workers just like you.

State law requires that contractors who get public money to work on construction projects—roads, libraries, schools, fire stations, etc—submit payroll records to the cities and towns that employ them. These records include your name and the amount that your employer says that you’re earning. In our capacity as a ‘watchdog’ group, we show you that number so you can check it against what you’re really making—the amount that shows up on your paycheck each week.

Now, for the second part of your question. If there is a difference between your personal bottom line and what your boss says you’re making, you’ll want to file a complaint with the Attorney General’s office.

For more information on how to do just that, give us a call at 1-877-507-3247, email us at info@ffcm.org, or fill out this electronic form.

For more commonly asked Compliance Man questions, visit the Compliance Man archives. Send your question to info@ffcm.org.