Government-mandated minimum pay rates that contractors must use on federally funded construction jobs.
Davis-Bacon wages are the prevailing wage rates that federal law requires contractors to pay workers on federally funded construction projects. The Davis-Bacon Act requires these rates to be determined by the Department of Labor for each locality and trade classification. Contractors must pay at least the published wage rate plus fringe benefits for each classification used on covered projects.
Bidders on the federal courthouse project were required to pay Davis-Bacon wages, increasing estimated labor costs by 18% over market rates.
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