The Davis-Bacon Act requires contractors on federal construction contracts over $2,000 to pay laborers and mechanics the locally prevailing wage and fringe benefits set in the project's wage determination, submit weekly certified payroll, and post required notices. Violations can trigger withheld payments, contract termination, and three-year debarment from federal work.
Davis-Bacon Act Prevailing Wage: 2026 Contractor Guide
The Davis-Bacon Act requires contractors on federal construction contracts over $2,000 to pay laborers and mechanics the locally prevailing wage and fringe benefits set in the project's wage determination, submit weekly certified payroll, and post required notices. Violations can trigger withheld payments, contract termination, and three-year debarment from federal work.
Davis-Bacon Act Prevailing Wage: 2026 Contractor Guide
The Davis-Bacon Act requires contractors on federal construction contracts over $2,000 to pay laborers and mechanics the locally prevailing wage and fringe benefits set in the project's wage determination, submit weekly certified payroll, and post required notices. Violations can trigger withheld p
The Davis-Bacon Act requires contractors on federal construction contracts over $2,000 to pay laborers and mechanics the locally prevailing wage and fringe benefits set in the project's wage determination, submit weekly certified payroll, and post required notices. Violations can trigger withheld payments, contract termination, and three-year debarment from federal work.
This AIGovBid guide covers trades & construction for small business government contractors and explains the next steps contractors should take.
Frequently asked questions
Does the Davis-Bacon Act apply to HVAC, roofing, and other trades subcontractors, or only general contractors?
Davis-Bacon applies to every contractor and subcontractor performing covered work on the site of a federal or federally-assisted construction contract over $2,000, regardless of tier. An HVAC subcontractor, roofer, or electrician working under a prime on a covered project must pay the prevailing wage for their trade classification just like the prime contractor, and the prime is responsible for flowing the requirement down.
Does Davis-Bacon apply to state and local government construction projects, not just federal ones?
Yes, if the project receives federal funding. Davis-Bacon Related Acts extend the same prevailing wage requirements to construction funded through federal grants, loans, or loan guarantees, including projects under the Federal-Aid Highway Acts, the Housing and Community Development Act, and federally funded water infrastructure programs. Many SLED construction contracts trigger DBRA this way even though the buyer is a city, county, or school district.
Can apprentices be paid less than the prevailing wage on a Davis-Bacon project?
Only if they are individually registered in a bona fide apprenticeship program recognized by the Department of Labor or a state apprenticeship agency, and the work follows that program's approved ratios and terms. An unregistered worker classified as an apprentice or helper to justify a lower rate is one of the most common Davis-Bacon violations the Department of Labor cites.
What happens if a contractor underpays workers on a Davis-Bacon project?
The contracting agency can withhold contract payments to cover back wages owed, and violations can lead to contract termination, contractor liability for the government's resulting costs, and debarment from federal contracting for three years. The Department of Labor's Wage and Hour Division investigates complaints and can direct contractors to pay make-whole relief to affected workers.
How do I find the prevailing wage rate for my trade before I bid a federal construction contract?
Davis-Bacon wage determinations are published on SAM.gov and are specific to the type of construction, the county, and the labor classification. The rate that applies is the one in effect when the contract is awarded, so pulling the correct wage determination before you price your bid, not after award, is what keeps your estimate accurate and your bid compliant.
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