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The Davis-Bacon and Related Acts require that contractors (and subcontractors) pay their workers prevailing wages on Federally - funded or - assisted construction projects. Anchor top top
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Overview
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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 Davis-Bacon prevailing wage provisions 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 lawsThe Davis-Bacon Act, as amended, requires that, for Federal contracts over $2,000, laborers be paid the locally prevailing wages and fringe benefits for work done at the contractually-determined site of work. Additionally, Congress has added prevailing wage provisions to approximately 60 Federal statutes ("related acts") which assist construction projects through financial assistance awards, loans and loan guarantees, and insurance. Collectively, these Federal prevailing wage laws are known as Davis-Bacon and Related Acts, or DBRA.
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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If the program's authorizing legislation does incorporate the Davis-Bacon Act requirements, the provision is applicable to construction contracts of more than $2,000 awarded by recipients and subrecipients. see 2 CFR 200 Appendix II—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards for more information. However, if the Davis-Bacon Act requirements are not specifically included in the program’s authorizing legislation, then the requirements do not apply.
48988302Davis-Bacon and Related Acts (DBRA)
Frequently Asked Questions
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