My construction company is reviewing a federal Invitation for Bid (IFB) for a courthouse renovation, NAICS 236220. The project is over $2 million. We've been told the Davis-Bacon Act applies, but I need to understand the actual requirements. I've seen some mentions of prevailing wages, but the specifics are not clear. What are the requirements for construction contracts under the Davis-Bacon Act? What do I need to include in my bid to comply?
The Davis-Bacon Act requires contractors and subcontractors on federal construction contracts to pay their laborers and mechanics no less than the local prevailing wages and fringe benefits. These requirements apply to federal contracts for construction, alteration, or repair, including painting and decorating, of public buildings or public works when the contract amount exceeds the specific threshold (FAR 22.403-1).
To comply with the Davis-Bacon Act in your bid for the courthouse renovation, you must include the applicable wage determinations. The solicitation will typically include these wage determinations, which list the minimum wages and fringe benefits for various labor classifications in the project's geographic area. My firm has lost bids by underestimating labor costs in our pricing, so make sure your pricing volume reflects these rates accurately for all your staff and any subcontractors. You will also need to submit certified payroll records weekly to ensure compliance throughout the project. This is a big reason I prefer county and school work; federal contracts add a layer of reporting that can be a real pain if you're not set up for it.