Start With the Right Wage Determination
Federally funded or assisted construction carries Davis-Bacon labor standards, and the wage determination that applies is in the bid documents. Every general wage determination is also published on SAM.gov. The number tells you the state, the year, and the sequence: in the Department of Labor's own example, OH20220074 is Ohio, 2022, number 0074.
Check the schedule type before anything else. The Department of Labor uses four:
- Building: sheltered enclosures with walk-in access for housing people, machinery, equipment, or supplies.
- Residential: single-family houses, townhouses, and apartment buildings of four stories or less.
- Highway: roads, streets, highways, runways, parking areas, and most other paving not incidental to building or heavy work.
- Heavy: the catch-all for projects that are not building, residential, or highway.
The bid documents say which schedule covers which work, and some projects attach more than one. Price each scope with the schedule assigned to it.
Check the Modification Before Bid Day
General wage determinations are modified through the year, and the header shows the current modification number and its publication date. Under 29 CFR 1.6, a revision issued 10 or more days before bid opening applies to the bid. A revision issued inside 10 days also applies unless the agency finds there is not enough time to notify bidders. If the contract is not awarded within 90 days after bid opening, revisions issued before award apply unless the agency gets an extension.
- Write the wage determination number and modification number on your bid worksheet.
- Recheck SAM.gov the day before bid.
- Read every addendum for a revised wage determination.
Read the Rate Identifiers
Each group of rates on the wage determination carries an identifier that tells you where the rate came from.
| Identifier | What it means |
|---|---|
| Union code (for example PLUM0131, ELEC0490) | A union rate prevailed. The first four letters name the union and the digits are the local. |
| SU + state | Rates from survey data: a non-union majority rate or, more often, a weighted average. |
| UAVG | No single rate made a majority, but all the data for that classification was union data. |
| SA + state | Rates adopted from a state or local government's prevailing wage schedule. |
| SC + state | Supplemental classifications and rates added to the wage determination. |
Match Every Crew Member to a Classification
Workers are paid the full rate for the classification of work they actually perform, hour by hour (DOL). A laborer who runs a loader for half the day is paid the operator rate for those hours, and the time records have to show the split.
- Operators: many wage determinations group equipment into power equipment operator groups. Find every machine on your crew in the group list and its footnotes.
- Laborers: groups often split by task, such as pipe layer, flagger, and general laborer.
- Truck drivers: often listed by truck type. Check how the contract treats hauling on site versus delivery from off site.
When a role you need is not listed, it goes through a conformance request on Standard Form 1444, submitted by the contracting agency. The classification has to be one actually used in the area, and its rate has to bear a reasonable relationship to the rates already listed (DOL conformance guide). Price it off the closest listed classification and state the assumption on the bid.
Turn Base Plus Fringe Into a Crew Rate
Each classification carries a base rate and a fringe. The fringe can be paid as cash, into bona fide plans, or a mix of both (DOL Fact Sheet 66E). On covered contracts over $100,000 ($150,000 under the FAR), overtime over 40 hours in a workweek is 1.5 times the basic rate, and the fringe on the wage determination is left out of the overtime math (DOL).
Taxes and insurance ride on wages. Cash paid in place of fringe is taxed as wages. Contributions to bona fide health and retirement plans generally are not.
Worked example with illustrative rates, not from a real wage determination: one operator at $40.00 base and $20.00 fringe paid into plans, 10-hour days for 5 days, payroll taxes at 7.65% and workers comp at 6%.
| Line | Math | Cost |
|---|---|---|
| Straight time | 40 hr × $40.00 | $1,600.00 |
| Overtime | 10 hr × $60.00 | $600.00 |
| Fringe | 50 hr × $20.00 | $1,000.00 |
| Taxes and comp | 13.65% × $2,200.00 | $300.30 |
| Week | $3,500.30 | |
| Loaded rate | $3,500.30 ÷ 50 hr | $70.01 per hour |
Paying time and a half on the full $60 package would add $100 a week for this one operator. On a five-person crew for 12 weeks, that is about $6,000 of cost the contract does not require. Run your own crew in the prevailing wage crew cost calculator.
Apprentices and Certified Payroll
- Apprentices can be paid less than the journeyworker rate only when they are individually registered in a program registered with the Department of Labor or a recognized state apprenticeship agency. The apprentice ratio is checked daily, not weekly.
- Certified payroll is due every week, within 7 days after the regular pay date. Form WH-347 is the optional federal form. Carry office time for it in general conditions.
Common Mistakes on Prevailing Wage Bids
- Pricing off an old modification or last year's wage determination.
- Using the wrong schedule for the scope.
- Putting operators in the wrong equipment group.
- Paying overtime on the fringe.
- Leaving taxes off fringe paid as cash.
- Leaving out certified payroll and compliance time.
- Missing the state program on state-funded work. Many states run their own prevailing wage programs with their own rates and reporting.
Get the prevailing wage bid checklist (PDF) to run on every public bid.
Common Questions
Where do I find the Davis-Bacon wage determination for my project?
It is in the bid documents. General wage determinations are also published on SAM.gov, searchable by state, county, and type of construction.
Which wage determination modification applies to my bid?
Under 29 CFR 1.6, a revision issued 10 or more days before bid opening applies. One issued inside 10 days also applies unless the agency finds there is not enough time to notify bidders. If award comes more than 90 days after bid opening, revisions issued before award apply unless the agency gets an extension.
Is overtime paid on fringe benefits?
No. On covered contracts, overtime over 40 hours in a workweek is 1.5 times the basic hourly rate. The fringe amount on the wage determination is not multiplied.
What if a classification I need is not on the wage determination?
The contracting agency submits a conformance request on Standard Form 1444. The classification has to be one actually used in the area, and its rate has to bear a reasonable relationship to the rates already on the wage determination.