When does Davis-Bacon apply?
It applies to contracts over $2,000 to which the United States or the District of Columbia is a party (FAR 22.403-1). The work must be construction, alteration or repair of public buildings or public works. Painting and decorating count.
It protects laborers and mechanics working on the site of the work. This holds whatever the contract between them and you says (FAR 52.222-6).
Other federal funding laws can bring the same wage rules to state and local jobs. If a state or city job has federal money, read the wage clause in its solicitation.
Where do you find the wage determination?
Look in the solicitation's attachments first. A determination is issued for an area and a type of construction, and the solicitation tells you which one applies.
The Department of Labor says contracting officers can get these determinations from SAM.gov, and that the site is open to the public. You can use it to look at one directly.
Use the determination in the solicitation you are answering. If an amendment replaces it, use the replacement.
How do you price labor from a wage determination?
A determination lists work classifications with a basic hourly rate and a fringe rate. Your all-in labor cost starts from both.
Your own costs then go on top, and your own company sets these. These steps are a method for checking your rates, not a required form.
- 1List each trade your job needs, and match it to a classification in the determination.
- 2Add the basic hourly rate and the fringe rate for that classification.
- 3Add your own payroll taxes, insurance and overhead.
- 4Check that your rate is at or above the determination for each trade.
- 5Send the determination to each subcontractor, and ask them to confirm that their price follows it.
- 6If a trade is not listed, raise it with the contracting officer before you bid.
Ask your payroll adviser how your fringe benefits count. A paid plan may offset the fringe rate, and a wrong assumption can cost you after award.
What must you do if you win?
The contract carries its own duties. These come with a cost in office time, so allow for that in your price.
| Duty | What the clause says | Source |
|---|---|---|
| Pay | Pay laborers and mechanics not less often than once a week | FAR 52.222-6 |
| Post | Keep the wage determination and the WH-1321 poster at the primary site, easy to see | FAR 52.222-6 |
| Report | Send a copy of all payrolls to the contracting officer, weekly, for each week with contract work | FAR 52.222-8 |
| Certify | Send a signed Statement of Compliance with each payroll. Form WH-347 is available for this | FAR 52.222-8 |
| Subcontractors | As prime, you answer for sending in copies of your subcontractors' payrolls | FAR 52.222-8 |
| Keep records | Keep payroll records during the work and for 3 years after | FAR 52.222-8 |
Has the rule changed recently?
Yes. The Department of Labor's updated Davis-Bacon rule took effect on October 23, 2023. A federal court in Texas then blocked three of its provisions nationwide, in a preliminary injunction dated June 24, 2024.
The law can move again, so check the Department of Labor's page for its current status. Also, the FAR itself is being rewritten. Follow the clauses in your own solicitation, and take legal advice on a dispute.
What Bidligence does here, and what it does not do
Bidligence reads the solicitation's wage clauses and attachments, and it adds the requirements to your submission checklist. It also prices your job line by line, with the build-up of each rate shown.
It does not apply a wage determination to your labor rates automatically. Check every labor rate against the determination yourself. It also does not run your certified payroll.
Questions
- What is the Davis-Bacon threshold?
- It applies to federal contracts over $2,000 for the construction, alteration or repair of public buildings or public works (FAR 22.403-1).
- Where do I find the wage determination for my job?
- Look in the solicitation's attachments first. Wage determinations are also available to the public on SAM.gov.
- How often must certified payroll be sent in?
- Weekly, for each week with contract work. A Statement of Compliance goes with each one (FAR 52.222-8).
- Does Davis-Bacon apply to my subcontractors?
- Yes. It covers laborers and mechanics on the site whatever their contract says. As prime, you answer for sending in their payrolls.
Sources
Rules and portals change. Check the tender’s own documents and the official source before you rely on any of this.
