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School district HVAC job has a Davis-Bacon wage determination and a district wage schedule. Which one do I pay?

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We're bidding a rooftop unit replacement at two campuses for an ISD here in central Texas. The bid packet came with the district's own prevailing wage schedule, the one they adopt under the state statute. Then an addendum dropped saying part of the project is paid with federal grant money, so now there's a Davis-Bacon wage determination attached too.

I went through both line by line. For sheet metal workers the federal rate is higher. For the electrician doing the disconnects, the district schedule comes out higher. The fringes are laid out differently on each one, which doesn't help.

Do I pay the higher of the two for every classification, or does the federal determination replace the district schedule once federal money touches the job? And does this mean two sets of certified payroll, one to the district and one to whoever checks the federal side?

asked Rene G. Owner, commercial HVAC contractor · San Marcos, TX · 2 rep

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Pay the higher rate for each classification. A Davis-Bacon wage determination sets a federal floor, and it doesn't cancel a state or district schedule that's higher. When both apply to the same job, you meet both by paying whichever is higher, craft by craft, so your sheet metal guys get the federal rate and your electrician gets the district rate.

I run into this on hauling subs for state DOT work in Illinois when federal-aid money is in the project. The state rate sheet and the federal determination both end up in the contract, and the prime checks every classification against both before anyone sets up payroll.

On fringes, 29 CFR 5.31 lets you meet the Davis-Bacon fringe in cash or through a bona fide plan, so add base plus fringe on each sheet before you compare. Run the same math against the district schedule under Texas Government Code Chapter 2258.

You don't need two payroll systems. 29 CFR 5.5(a)(3) wants a weekly certified payroll that shows what you actually paid each worker. On a federally assisted job it goes to the district, and the district answers to the grant agency, so there's no separate federal mailbox. Ask the district in writing which form they want. The Department of Labor's optional WH-347 covers the federal side, and some districts add their own format on top.

Also read the grant language. On federally assisted jobs the Davis-Bacon coverage normally reaches the whole project, not just the dollars the grant pays for, so don't price one campus at district rates only because the addendum ties the federal money to the other one.

answered Tomasz K. Owner, dump truck and hauling company · Joliet, IL · 5 rep

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