Davis-Bacon Act Compliance

Master prevailing wage requirements for federal construction contracts

Understanding the Davis-Bacon Act

The Davis-Bacon Act requires payment of locally prevailing wages on public works projects. It applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for construction, alteration, or repair of public buildings or public works.

Key Threshold: Applies to all federal construction contracts over $2,000

Covered Projects

Federal Construction

  • Building construction
  • Heavy construction
  • Highway construction
  • Residential construction (rare)

Related Acts Coverage

  • Federal-Aid Highway Act
  • Housing & Community Development Act
  • Federal Water Pollution Control Act
  • Native American Housing Act

Key Requirements

  • Pay prevailing wages weekly
  • Submit certified payroll reports
  • Post wage determinations
  • Maintain accurate records

Wage Determination Process

Step Action Resource
1. Identify Project Type Determine building, heavy, highway, or residential Contract specifications
2. Find Wage Determination Search SAM.gov for applicable rates SAM.gov Wage Determinations
3. Apply Correct Classification Match worker roles to classifications DOL classification guide
4. Calculate Fringe Benefits Include required fringe or pay cash equivalent Wage determination details

Certified Payroll Requirements

Weekly Submission

  • Use Form WH-347 or equivalent
  • Submit within 7 days of pay period
  • Include Statement of Compliance
  • Signed by authorized representative

Required Information

  • Employee name and address
  • Work classification
  • Hours worked each day
  • Rate of pay and fringe benefits

Common Violations & Penalties

Warning: Violations can result in contract termination, debarment, and criminal prosecution.
  • Misclassification: Using incorrect worker classifications to pay lower wages
  • Inadequate Records: Failing to maintain proper payroll documentation
  • Late Payment: Not paying wages weekly as required
  • False Statements: Submitting false certified payroll reports
  • Kickbacks: Requiring employees to return portion of wages