At a Glance
Quick Answer
Colorado has an active prevailing wage law (Colorado Prevailing Wage Act). Administered by Colorado Department of Labor and Employment (CDLE). Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Colorado's prevailing wage law applies to state-funded construction projects with a total cost of $500,000 or more. The Department of Personnel and Administration sets wage rates, while CDLE enforces compliance. Contractors must use LCPtracker for weekly certified payroll submissions.
Context
Prevailing Wage & Bidding in Colorado
Colorado's Prevailing Wage Act applies to state-funded construction projects with a total cost of $500,000 or more, with the Department of Personnel and Administration setting the wage rates and the Colorado Department of Labor and Employment enforcing compliance. For estimators, that $500,000 threshold is the first thing to check: state-funded work at or above it must be priced to the published prevailing wage and fringe rates for each classification, while smaller state jobs and most purely local or private work fall outside the state program and can be priced at market rates. Confirm the funding source and total project cost before deciding which labor basis applies.
On covered projects the administrative load is real. Contractors must submit weekly certified payroll through the LCPtracker system and maintain a daily log of employees on-site, so budget the staff time and software discipline those obligations require. Accurate trade classification and correct fringe accounting are essential, because the certified record is exactly where underpayments and misclassifications surface. When federal funds are also present, Davis-Bacon may apply alongside the state law, and you should follow the more stringent rate for each trade.
The compliance consequences in Colorado are serious. Violations can lead to back-wage payments, civil penalties, and debarment from public contracts, and falsifying payroll records can bring criminal charges. The safest bid prices labor to the correct CDLE-enforced rate from the start, plans for weekly LCPtracker submission and the on-site daily log, and never relies on optimistic market rates for a job that crosses the $500,000 state-funded threshold. Verify current rates and your reporting setup before you finalize the number.
Details
Coverage Details
State Law Details
- Law
- Colorado Prevailing Wage Act
- Agency
- Colorado Department of Labor and Employment (CDLE)
- Thresholds
- State-funded construction projects of $500,000 or more
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Colorado. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Applies to state-funded projects of $500,000 or more
LCPtracker system required for weekly certified payroll submission
Department of Personnel and Administration sets wage rates
CDLE Division of Labor Standards and Statistics enforces compliance
Daily log of employees must be maintained on-site
Enforcement
Penalties
Contractors found in violation may face debarment from public contracts, payment of back wages, and civil penalties. Falsification of payroll records may result in criminal charges.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Colorado have a prevailing wage law?
Yes. Colorado has an active state prevailing wage law: Colorado Prevailing Wage Act. Colorado's prevailing wage law applies to state-funded construction projects with a total cost of $500,000 or more. The Department of Personnel and Administration sets wage rates, while CDLE enforces compliance. Contractors must use LCPtracker for weekly certified payroll submissions.
Does Davis-Bacon apply in Colorado?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Colorado, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Colorado?
Yes. Colorado requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Colorado?
Contractors found in violation may face debarment from public contracts, payment of back wages, and civil penalties. Falsification of payroll records may result in criminal charges.
When does Colorado prevailing wage apply to a project?
Colorado's Prevailing Wage Act covers state-funded construction projects with a total cost of $500,000 or more. Smaller state jobs and most purely local or private work fall outside the state program. Always confirm the funding source and total project cost before choosing your labor pricing basis.
How is certified payroll submitted in Colorado?
Covered contractors submit weekly certified payroll through the LCPtracker system and must also maintain a daily log of employees on-site. Budget staff time for both. The Department of Personnel and Administration sets the rates, while CDLE's Division of Labor Standards and Statistics enforces compliance.
What are the consequences of prevailing wage violations in Colorado?
Violations can result in back-wage payments, civil penalties, and debarment from public contracts. Falsifying payroll records can bring criminal charges. Because certified records expose underpayment and misclassification, accurate trade classification and fringe accounting are essential on any covered Colorado project.