DAVIS-BACON PREVAILING WAGES
Published on Saturday, December 24, 2022
WHAT IS PREVAILING WAGE?
DAVIS-BACON HELPS LEVEL THE PLAYING FIELD ON PUBLIC PROJECTS
To pay Prevailing Wage means to pay construction workers who are working on a qualifying project the standard of what similar construction workers make in a certain geographical area. This compensation includes hourly wages, overtime and benefits provided by the employer. The intention of Prevailing Wage laws are to ensure contractors do not “low-ball” their bid on a project. This essentially levels the playing field when it comes to bids and places value on a workforce who performs their work correctly the first time. It forces contractors to compete on the basis of who can best train, best equip and best manage a construction crew.
State and local Prevailing Wage laws ensure local labor is used on local community projects. When local labor is used, the money used to pay the construction workers is reinvested back into the community where they live and patronize local businesses. Federally funded construction projects are covered under the Davis-Bacon Act, which like Prevailing Wage, require construction contractors who work on publicly funded projects to pay construction workers at least the Prevailing Wages and benefits in the area in which they are working.
