Maryland's prevailing wage law applies to public works construction valued at $250,000 or more when funded in whole or part by state money. For state agencies, any state funding triggers coverage. For localities and school districts, 25% or more state funding triggers coverage.
Maryland has an active prevailing wage law (Maryland Prevailing Wage Law (State Finance and Procurement Article, Title 17, Subtitle 2)). Administered by Maryland Department of Labor, Division of Labor and Industry. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Maryland's prevailing wage law (State Finance and Procurement Article, Title 17, Subtitle 2), administered by the Department of Labor's Division of Labor and Industry, attaches to public works valued at $250,000 or more when state money funds the project. The funding test is what trips up bidders: for state-agency projects, any amount of state funding triggers coverage, while for local government and school construction the project must carry 25% or more state funding to be covered. Before you bid, determine the funding mix precisely — guessing wrong on whether a county or school job crosses the 25% line can put you on the hook for the wrong labor rates.
When coverage applies, price every trade to the Prevailing Wage Unit's determinations, including required fringe benefits, and classify workers correctly. Maryland also reaches mechanical-systems service contracts over $2,500, so HVAC and similar service bidders should not assume the $250,000 construction threshold shields their work. Certified payroll is required, so build payroll-reporting labor and software costs into your overhead and confirm your subcontractors can produce compliant records.
The compliance stakes are real. Willful violations can lead to debarment from public contracts, payment of back wages with interest, and civil penalties — any of which damages both your margin on the current job and your eligibility for future public work. On federally funded Maryland projects, Davis-Bacon may apply alongside the state law, and you should price to and comply with the more stringent standard. The disciplined approach: verify funding source and percentage, pull the correct wage determination at bid time, and treat prevailing-wage labor and reporting as fixed, non-negotiable costs in your estimate.
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Maryland. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Contractors may be debarred from public contracts, required to pay back wages with interest, and face civil penalties for willful violations.