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.
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 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.
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.
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.