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What is Davis Bacon, how does it effect my project, what and why do I need to be familiar with Davis Bacon?

By March 30, 2012Contracting

Davis Bacon Wages aka Prevailing Wages are a requirement for 99% of K-Con’s projects.

Under the Davis-Bacon Act (of 1931), contractors and their subcontractors are required to pay workers who perform work directly on the job site according to the local wage rates plus fringe benefits. The Secretary of Labor determines the local prevailing wage rates for that location.

When K-Con bids on a project, the wage determination (wage scale) is usually included with the solicitation. Once a project has been awarded and all subcontractors are ready to go, each week that a subcontractor performs work on the job site, they must supply a Certified Payroll Report from start to completion. This report consists of each employee working on site, how many hours worked each day, total hours worked for each week, what type of work was performed (carpenter, equipment operator, drywall installer, painter, electrician, ironworker, etc), rate of pay, deductions, net wages for the week.

K-Con then reviews each payroll report, as they are received, for accuracy and to make sure each employer is paying each employee according to the Davis Bacon Wages. It is extremely important to verify each employee has been paid accordingly. If a certified payroll report is submitted to the Contracting Officer that is inaccurate, corrections have to be made immediately. This can hold up any future payments on the project until the issue is resolved. In some cases, the Contracting Officer may require copies of the employees check as well as signed affidavits to verify that each person has been paid accordingly.

With K-con’s experience with Davis Bacon wages, we stress the importance of these requirements to our subcontractors at the beginning stages, when the sub signs the subcontract agreement paperwork. It is helpful if the sub is familiar with Davis Bacon, but if not K-Con walks them through the process step by step.