Avoiding Davis-Bacon Act Pitfalls

The Davis-Bacon Act requires contractors on federal construction contracts and many federally financed projects to pay laborers and mechanics no less than the prevailing wages and fringe benefits as determined by the Department of Labor. While simple on its face, the act and its complex regulations present numerous compliance challenges for prime contractors and their subcontractors. Failure to understand all of the act’s nuances can prove costly to both a contractor’s bottom line and its reputation.