Vermont's prevailing wage requirements are tied to the Capital Construction Act (CCA). Projects funded by the CCA costing over $100,000, or projects at least 50% CCA-funded costing over $200,000, must pay prevailing wages. Fringe benefit add-on is 42.5% of base wage.
Vermont has an active prevailing wage law (Vermont Capital Construction Act Prevailing Wage Requirements). Administered by Vermont Department of Labor. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Vermont's prevailing wage requirements are tied specifically to the Capital Construction Act (CCA) rather than applying to all public works, so identifying the funding source is the threshold question on every Vermont bid. Administered by the Vermont Department of Labor, the rules cover CCA-funded projects costing over $100,000, and projects that are at least 50% CCA-funded costing over $200,000. If a public project draws its money from another source, the state prevailing wage obligation may not attach, so read the funding structure in the solicitation carefully before pricing labor.
When a project is covered, price to the Department of Labor's annual wage rate schedules, and pay close attention to geography and fringe. Vermont divides the state into three geographic wage areas, so the correct rate depends on where the work is performed; using the wrong area's schedule will distort your bid. Critically, Vermont applies a fringe benefit add-on of 42.5% of the base wage rate, a substantial uplift that must be built into your labor line items. Omitting or underestimating that fringe component is the single largest estimating risk on covered Vermont work and will quietly erase margin if you discover it after award.
Certified payroll is required on covered projects, so budget for weekly reporting, accurate trade classification, and disciplined recordkeeping in your overhead. Noncompliance exposes you to back-wage liability and potential debarment from state contracts. Federal Davis-Bacon also applies independently to any federally funded project over $2,000, and where both regimes reach the same job you must pay the higher applicable rate by trade. Confirm CCA status, the correct geographic wage area, and the 42.5% fringe before you finalize your number.
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Vermont. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Contractors face payment of back wages and potential debarment from state contracts for non-compliance.