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Which states have their own prevailing wage law, and where does the rate sheet for a city job come from?

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My mechanical contracting company is looking to expand from Colorado into some neighboring states. We're bidding on two city jobs right now, both for HVAC services under NAICS 238220. One Invitation for Bid from Arizona says a state prevailing wage schedule applies, but another Invitation for Bid from New Mexico says the Davis-Bacon Act applies because of federal funding. Colorado doesn't have a state prevailing wage law, so this is new to me.

I'm trying to understand how these work. Which states have their own prevailing wage laws? How does a state wage determination differ from a federal one, and which one takes precedence when a solicitation mentions both?

asked Jo R. Freelance proposal writer · Denver, CO · 512 rep

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Many states have their own prevailing wage laws, and the wage determination for a city job comes from the specific state or local labor department, or the Department of Labor for federal funding.

Colorado does not have its own prevailing wage law, but Arizona does, and New Mexico defers to the federal Davis-Bacon Act when federal funds are involved. Federal contracts for construction, alteration, or repair above a certain dollar amount, including painting and decorating, are subject to the Davis-Bacon prevailing wage requirements, as specified in FAR 22.403-1. When both state and federal prevailing wage requirements apply, the contractor must pay the higher of the two rates for each labor classification. This ensures workers receive the most favorable wage and benefit package. You will need to check each state's specific labor laws and the solicitation documents carefully to determine which wage determination applies and how to obtain it. State procurement portals or local government purchasing departments usually provide links to applicable wage schedules or instructions on where to find them.

answered Dave H. Verified vendorParts distributor, DLA and DIBBS · Dayton, OH · 403 rep

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Sign up to answerCite the FAR clause or procurement code where you can.