Glossary / Regulations, Personnel
Davis-Bacon Act
The Davis-Bacon Act requires contractors and subcontractors on federal and federally assisted construction contracts over $2,000 to pay laborers and mechanics at least the locally prevailing wages and fringe benefits the Department of Labor determines for the type of work. The contracting agency attaches the wage determination to the solicitation; the contractor submits certified weekly payrolls and posts the rates at the site. Related acts extend the requirement to construction funded through federal grants and loans, which brings many state and local projects under it.
Why it matters to your pipeline
Davis-Bacon rates and the weekly certified-payroll duty shape the cost and the administration of every federal construction job, including the small ones a trades firm wins first. A bid priced on commercial wages loses money from the first week; a contractor without a payroll process that produces the certified reports invites findings. The wage determination is where a construction bid starts.
When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.
Example
An electrical contractor wins a $240K lighting retrofit at a federal building. The attached wage determination sets electricians at $42.10 plus $19.85 in fringes; the firm prices to it and submits certified payrolls each week of the ten-week job.
Find out what applies to you
Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.