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The Davis-Bacon and Related Acts require contractors (and subcontractors) pay their workers prevailing wages on Federally-funded or -assisted construction projects. Anchor top top
requires contractors and subcontractors to pay local prevailing wages on Federal contracts over $2,000, as well as certain Federal financial assistance awards.
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All grants and cooperative agreements. |
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According to the U.S. Department of Labor's Employment Law Guide, the Davis-Bacon and Related Acts (DBRA) require all contractors and subcontractors performing on Federal contracts (and contractors or subcontractors performing on Federally-assisted contracts under the related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract’s Davis-Bacon wage determination for corresponding classes of laborers and mechanics employed on similar projects in the area. [1] Specifically, the Davis-Bacon Act applies to certain construction projects on public buildings or public works, while the "related acts" include In addition to the Davis-Bacon Act itself, Congress added Davis-Bacon prevailing wage provisions to approximately 60 laws—"related Acts"— under which Federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. (Examples of the related Acts are the Federal-Aid Highway Acts and the Housing and Community Development Act of 1974.) Generally, the application of prevailing wage requirements to projects receiving federal assistance under any particular "related" Act depends on the provisions of that law. Currently there are approximately 60 such Federal laws.
The Davis-Bacon Act is specific only to those contracts to which the United States is a party. Issuing a financial assistance award to a recipient who then issues a contract for construction does not make the United States a party to that contract, and as such the Davis-Bacon Act does not directly apply. For this reason, Congress has had to specifically incorporate Davis-Bacon applicability into about 60 other statutes in order to make the law applicable in circumstances where the Federal government assists construction projects through the provision of grants, loans, loan guarantees, and insurance.
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