Davis-Bacon Act(DBA)
A federal law requiring contractors on federally funded construction projects to pay workers prevailing local wages.
Overview
The Davis-Bacon Act (1931) requires contractors and subcontractors working on federally funded or assisted construction projects worth over $2,000 to pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits. The Department of Labor determines these prevailing wage rates for each geographic area.
Why It Matters in GovCon
If you perform construction work for the federal government, Davis-Bacon compliance is mandatory. Violations can result in contract termination, debarment from future federal work, and liability for back wages. Accurately factoring prevailing wages into your bid pricing is critical for both competitiveness and profitability.
Key Details
- Covered Projects: Federally funded or assisted construction, alteration, or repair of public buildings and works exceeding $2,000.
- Wage Determinations: Published by the Department of Labor for specific counties and types of construction (building, heavy, highway, residential).
- Certified Payrolls: Contractors must submit weekly certified payroll reports demonstrating compliance.
- Enforcement: The Department of Labor's Wage and Hour Division investigates complaints and can withhold contract payments to cover underpayments.
Related Terms
- Prevailing Wage
- Wage Determination
- Service Contract Act
- Miller Act
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