Question 1

What is the Davis-Bacon Act and does it apply to my project?

Accepted Answer

The Davis-Bacon Act requires contractors and subcontractors on federally funded or federally assisted construction projects to pay workers no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. It applies when the federal contract exceeds $2,000. If your prime contract references a federal agency or federal funding source, assume Davis-Bacon applies until confirmed otherwise.

Question 2

What is a Davis-Bacon Related Act (DBRA)?

Accepted Answer

Davis-Bacon Related Acts are approximately 60 statutes that extend Davis-Bacon prevailing wage protections to federally assisted construction projects funded through grants, loans, loan guarantees, or insurance. Common examples include the Federal Highway Administration, HUD-funded housing projects, and EPA water infrastructure grants. The compliance obligations are essentially the same as Davis-Bacon — prevailing wages, certified payroll, and posting requirements.

Question 3

How do I find the correct wage determination for my project?

Accepted Answer

Wage determinations are published on SAM.gov and are incorporated into your prime contract by the contracting agency. The determination specifies minimum wages and fringe benefits by trade classification for the county and type of construction. Always use the wage determination number listed in your contract — do not pull a generic determination from SAM.gov independently. If your contract does not include a wage determination and Davis-Bacon applies, contact the contracting officer immediately.

Question 4

What is the WH-347 and when must I submit it?

Accepted Answer

The WH-347 is the Department of Labor's standard certified payroll form. It documents each worker's name, classification, hours worked, gross wages, deductions, and net pay for a given workweek. Submission is required weekly for every week workers are on the job site. The form must be signed under penalty of perjury by a company officer or authorized representative. Most prime contractors require electronic submission through LCPtracker, Elation Systems, or a similar compliance portal.

Question 5

What are the most common WH-347 errors that trigger audits?

Accepted Answer

The most frequent errors include: misclassifying workers under a lower-wage trade classification; failing to pay the full fringe benefit rate or document how fringes are provided; leaving the Statement of Compliance unsigned or undated; submitting for the wrong workweek; and omitting workers who performed even a single hour of covered work. Each error can trigger a wage restitution demand, debarment proceedings, or contract withholding by the contracting agency.

Question 6

What are the IRA prevailing wage and apprenticeship requirements?

Accepted Answer

The Inflation Reduction Act conditions enhanced federal tax credits on meeting DOL prevailing wage standards and apprenticeship ratio requirements for qualifying clean energy construction projects. Contractors must pay prevailing wages to all laborers and mechanics, and must employ registered apprentices at a ratio of at least 10–15% of total labor hours (depending on project start date). Failure to meet these requirements reduces the available tax credit from 30% to 6% — a significant financial consequence.

Question 7

What is a labor classification and why does it matter?

Accepted Answer

A labor classification is the trade category assigned to each worker — for example, Carpenter, Electrician, Ironworker, or Laborer. The wage determination assigns a specific minimum wage rate to each classification. Misclassifying a skilled tradesperson as a general laborer to pay a lower rate is one of the most common and serious Davis-Bacon violations. Workers must be classified based on the work they actually perform, not their job title or the classification that benefits the contractor.

Question 8

What happens if my company is found non-compliant?

Accepted Answer

Consequences range from wage restitution orders (back pay to affected workers) to contract withholding, suspension of payments, and debarment from federal contracting for up to three years. The DOL Wage and Hour Division conducts investigations and can assess civil money penalties for willful or repeat violations. On IRA projects, non-compliance can also eliminate the enhanced tax credit. Early identification and correction of compliance gaps is always preferable to responding to a formal investigation.

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