Cleveland Community Benefits Ordinance Explained

Written By Adelaida Rivas

Cleveland is changing how public construction projects are carried out. The city is not only focused on building infrastructure. It focuses on ensuring those projects benefit the people who live there.

One of the main tools used to do this is the Community Benefits Ordinance. This policy requires developers and contractors to give back to the community in clear and measurable ways.

If you work on public construction projects, especially those tied to city or federal funding, this ordinance affects how you hire, plan, and manage your workforce.

Davis Bacon Solutions was created to break down rules like this so contractors can understand them without confusion and stay compliant on every project

What Is the Community Benefits Ordinance

The Community Benefits Ordinance is a local law in Cleveland that sets requirements for certain development projects.

It applies to projects that receive public funding, incentives, or support from the city.

The purpose is simple. If public money is used, the public should benefit.

This means contractors and developers must go beyond just completing the project. They must also support the local workforce and economy.

What the Ordinance Requires

The ordinance focuses on three main areas:

1. Local Job Creation

Contractors are expected to hire workers from the Cleveland area. This includes residents from neighborhoods that need more job opportunities.

2. Workforce Training

Projects are expected to support training programs that help people enter the construction industry.

3. Support for Minority Contractors

Developers are encouraged to work with minority-owned and small businesses.

These requirements are not suggestions. They are often written into agreements tied to project approval and funding.

How Community-Based Agreements Fit In

Cleveland uses community-based agreements to enforce these goals.

These agreements may include:

  • Local hire targets

  • Workforce participation goals

  • Reporting requirements

  • Community investment commitments

Many projects include a Memorandum of Understanding (MOU).

An MOU is a written agreement that explains what the contractor and the city agreed to do.

It usually includes:

  • How many local workers you need to hire

  • What hiring goals you must meet

  • What reports you need to submit

  • What community commitments are required

Think of it as a checklist for your project. It clearly states what is expected, so there is no confusion later.

If you do not follow the MOU, you may encounter

delays or compliance issues.

Why This Matters for Contractors

If you are bidding on a project in Cleveland, you need to understand these requirements before you start.

These rules affect:

  • How you hire workers

  • How you track labor hours

  • How you report workforce data

  • How you partner with local organizations

If you ignore these requirements, you risk delays, penalties, or losing the project.

How Local Hire Connects to the Ordinance

Local hire is one of the most important parts of the Community Benefits Ordinance.

It requires contractors to hire workers from the local area, often based on zip codes or income levels.

This means you cannot rely only on your usual workforce. You need a plan to recruit locally.

If you need a full breakdown of local hire requirements, visit:
Local Hire Requirements Explained for Contractors: A Simple Guide

How Section 3 Fits In

Many projects in Cleveland also include federal funding. When that happens, Section 3 requirements may apply.

Section 3 requires contractors to hire low-income workers and local residents.

This overlaps with local hire goals and makes compliance more complex.

Workforce Organizations That Support These Goals

Cleveland has several organizations that help contractors meet workforce requirements.

These groups provide training, job placement, and support for workers entering the construction industry.

Examples include:

Working with these organizations can help you meet hiring goals faster and stay compliant.

Real Example of How This Works

Let’s say you are awarded a city-funded construction project in Cleveland.

Your contract includes:

  • Local hire requirements

  • Workforce reporting

  • Community participation goals

You must:

  • Hire a percentage of workers from Cleveland

  • Track worker residency

  • Document your hiring efforts

  • Submit reports showing compliance

At the same time, if federal funding is involved, you must also:

  • Pay prevailing wages under Davis-Bacon

  • Submit certified payroll reports

This creates multiple layers of compliance.

Without a clear system, it is easy to make mistakes.

Where Contractors Get Stuck

Many contractors run into problems because they do not prepare early.

Common issues include:

  • Not tracking local hire data from the start

  • Struggling to find qualified local workers

  • Missing reporting deadlines

  • Not understanding how local rules connect with federal laws

These problems can delay projects and create financial risk.

How to Find Local Workers

One of the biggest challenges is meeting local hire goals.

LocalHire.us helps solve this problem:

It connects contractors with job seekers who meet local hire and Section 3 requirements.

This makes it easier to:

  • Find qualified workers

  • Track hiring efforts

  • Stay compliant

Using the right hiring platform can save time and reduce risk.

How Davis-Bacon Still Applies

Even with local policies, federal wage laws still apply.

If your project receives federal funding, you must comply with the Davis-Bacon Act.

This includes:

  • Paying the correct prevailing wage

  • Submitting weekly certified payroll

  • Classifying workers correctly

You can learn more about these requirements here:
2025 Davis-Bacon Act Updates: Certified Payroll, Prevailing Wages & More

Why Compliance Is More Complex Now

Construction compliance is no longer just about wages.

You now need to manage:

  • Local hire requirements

  • Section 3 goals

  • Workforce tracking

  • Certified payroll

  • Community agreements

Each requirement has its own rules and reporting process.

This is why many contractors choose to work with compliance experts.

How Labor Compliance CA Supports Contractors

Labor Compliance CA provides third-party labor compliance services for public works projects.

They help with:

  • Certified payroll review

  • Worker classification

  • Workforce tracking

  • Compliance reporting

  • Audit support

This allows contractors to focus on building the project while staying compliant.

Request a Labor Compliance Consultation

How Cleveland’s Approach Applies to Other Cities

Cleveland is not the only city using these types of rules. Cities across the country are adopting similar policies for public construction projects.

These policies are often called community benefits agreements. They focus on making sure construction projects create real opportunities for local workers.

You will see similar requirements in many cities, including:

  • Local hire goals

  • Workforce training programs

  • Support for small and minority contractors

  • Reporting requirements tied to public funding

If you work on public projects, you should expect these rules to become more common.

If you want a simple breakdown, you can learn how community benefits agreements work in construction here:
How CBAs work in Construction

Practical Steps to Stay Compliant

If you are working on a federally funded or city-funded construction project, take these steps early:

  • Review contract requirements before starting

  • Set up a system to track workforce data

  • Partner with local workforce organizations

  • Use a hiring platform like LocalHire.us

  • Make sure your payroll meets Davis-Bacon requirements

  • Work with a compliance expert, such as Labor Compliance CA, if needed

Planning early reduces risk and keeps your project on track.

How This All Works Together

Cleveland’s Community Benefits Ordinance is part of a larger system.

It connects:

  • Local hiring

  • Workforce development

  • Federal compliance

  • Community investment

Contractors who understand this system have a clear advantage.

They avoid delays, meet requirements, and build stronger relationships with project owners.

Where to Start

If you are new to these requirements, start with the basics.

Learn how Davis-Bacon works here:
https://www.davisbaconsolutions.com/blog

If you need help managing compliance, visit:
https://www.laborcompliance.us/

If you need to meet local hire or Section 3 goals, start here:
https://localhire.us/

Cleveland’s Community Benefits Ordinance is changing how construction projects are carried out. It is not just about building structures. It is about building opportunities for the community.

Contractors who understand these requirements early will be in a better position to win projects, stay compliant, and grow their business.

Adelaida Rivas
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