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Contract Compliance

Contract Compliance in Development Projects

Certain development projects that receive major financial help from the City of Milwaukee must meet community participation requirements as defined by Chapter 355 of the City of Milwaukee Code of Ordinances. These requirements are included in the project’s agreement with the city and depending on the project may include hiring Milwaukee residents for construction work, employ apprentices and trainees, certified small business enterprise participation, and following city hiring and reporting rules. The city tracks compliance and may withhold, reduce, or recover financial assistance if a project does not meet the terms of its agreement. 

These rules apply to development projects that receive at least $1 million in certain types of direct financial assistance from the city. City funds cannot be released until there is an approved term sheet and a signed development agreement. 

Covered projects must also meet Small Business Enterprise (SBE) participation Requirements. The ordiance sets minimum contracting levels of: 

  • 25% for construction
  • 25% for goods and services
  • 18% for professional services

Active Development Projects

Contract Compliance Reporting

Developers and their contractors are required to track and report participation as established within human resources agreement with the City. Projects must meet the participation requirements and maintain quarterly reports to submit to the Department of Compliance and Engagement. If all required exhibits are not submitted, participation is not met, the project is underperforming, and/or quaterly reports are not submitted timely, a project may fall into non-compliance. A project that has fallen into non-comliance will issued a formal letter that is placed on the file for the project. Persistent non-compliance will result in further enforcement measures or sanctions as determined by the agreement and City ordianace. 

Labor Complinace Reporting (LCR) 

Each contractor and lower-tier subcontractor on a project with RPP requirements is required to submit Resident Preference Program (RPP) documentation electronically. This includes payroll information for all workers on the project (including RPP and non-RPP workers), such as employee identification, labor classification, total hours worked on the project, and wage and benefits rates paid.

The city's Labor Compliance Reporting (LCR) Portal can be accessed online at https://itmdapps.milwaukee.gov/LoginMKE/loginCitizen.jsp?from=/LaborComplianceReporting/. 

Each contractor and subcontractor will be given a User ID and password to access the LCR application. Again, this requirement must be ‘flowed down’ to every lower-tier subcontractor required to provide RPP documentation for this project.

The use of the system will be free and be offered at no expense to our contractors and subcontractors.

Benefits of the Labor Compliance Reporting app

  • Prompts user to fill in all required fields on payroll to ensure no information is missing.
  • Crafts/classifications are standardized, making it easier to identify.
  • Validates data to avoid inadvertent mathematical errors.
  • Confirms immediately that correct prevailing wage rates are being paid.