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Davis-Bacon Technical Assistance for Construction Grants

Davis-Bacon Requirements for Recovery Act Health Center Construction & Renovation Webinar

Replay the Call: 1-800-219-6389

Covering Wage Determinations, Conformances & Certified Payrolls (PPT - 3.1 MB)

Davis-Bacon Conformances (PDF - 8.4 MB)

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Construction grant programs are required to adhere to labor standards established by the Davis-Bacon Act. The Davis-Bacon Act requires the payment of prevailing wage rates (which are determined by the U.S. Department of Labor) to all laborers and mechanics on Federal government and District of Columbia construction projects in excess of $2,000. Construction includes alteration and/or repair, including painting and decorating.

Each contract subject to Davis-Bacon labor standards requirements must contain labor standards clauses and a Davis-Bacon wage decision. These documents are often bound into the contract specifications.

The labor standards clauses describe the responsibilities of the contractor concerning Davis-Bacon wages and obligate the contractor to comply with the labor requirements. The labor standards clauses also provide for remedies in the event of violations, including withholding from payments due to the contractor to ensure the payment of wages or liquidated damages which may be found due. These contract clauses enable the contract administrator to enforce the Federal labor standards applicable to the project.

The Davis-Bacon wage decision (or wage determination) is a listing of various construction work classifications, such as carpenter, electrician, plumber and laborer, and the minimum wage rates (and fringe benefits, where prevailing) that people performing work in those classifications must be paid.

Davis-Bacon wage decisions are established by the Department of Labor for various types of construction (e.g., residential, heavy, highway) and apply to specific geographic areas, usually a county or group of counties. Wage decisions are modified from time to time to keep them current. In most cases, when the contract is awarded or when construction begins, the wage decision is “locked-in” and no future modifications are applicable to the contract or project involved.

Date Last Reviewed:  April 2017