NASCLA Accredited Commercial General ContractorGeneral RequirementsHard
A general contractor is preparing a bid for a public works project. Federal regulations, including the Davis-Bacon Act, apply to this project. What is the primary implication of the Davis-Bacon Act for the contractor's bidding and labor cost calculations?
- AIt requires the contractor to hire a minimum percentage of local residents.
- BIt requires the contractor to provide health insurance to all employees.
- CIt sets maximum limits on the number of hours workers can labor per week.
- DIt mandates the payment of prevailing wages and fringe benefits to workers.
Show answer & explanationAnswer & explanation
Correct answer: D. It mandates the payment of prevailing wages and fringe benefits to workers.
The Davis-Bacon Act requires contractors and subcontractors performing work on federally funded or assisted contracts over $2,000 for the construction, alteration, or repair of public buildings or public works to pay their laborers and mechanics no less than the local prevailing wages and fringe benefits.
Why the other options are wrong
- A. This is related to local hiring initiatives, not the core of the Davis-Bacon Act.
- B. While important, health insurance provision is not the primary focus or mandate of the Davis-Bacon Act, which centers on prevailing wages.
- C. Maximum hours are typically governed by other labor laws, like the Fair Labor Standards Act (FLSA), not specifically Davis-Bacon.
Davis-Bacon Act
A federal law that requires contractors and subcontractors on federally funded public works projects to pay their laborers and mechanics no less than the local prevailing wages and fringe benefits.
- Applies to contracts over $2,000.
- Aims to protect local wage standards.
- Requires certified payrolls to demonstrate compliance.
Memory trick: Davis-Bacon: 'Bacon' for 'basic' fair wages.