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How to Calculate Davis Bacon Prevailing Wage Rates

Updated: Jun 13

How to Determine Davis Bacon Prevailing Wages


Knowing how to figure out Davis Bacon prevailing wages is important for contractors involved in Federal Public Works construction projects. This guide offers a step by step method to ensure proper wage calculations.


Understanding Prevailing Wages


Prevailing wages refer to the minimum wages required to be paid to workers applicable to the Public Works project's location and specific type of work. Contractors and subcontractors working on funded or assisted construction projects must adhere to the Davis Bacon Act by paying their workers at the prevailing wages.


The Importance of Davis Bacon Rates


Adhering to Davis Bacon prevailing wage rates goes beyond compliance requirements; it's also about providing fair compensation to workers. Properly understanding and applying these rates can help safeguard your business from penalties.


Step by Step Calculation Process


1. Identify the Federal Wage Determination: Since wage rates differ by county and state it's crucial to begin with the Federal Wage Decision, which can be obtained from the contractor or awarding body.

2. Refer to the Department of Labor: The primary resource for finding wage determinations is the Sam.gov website.

3. Choose the Correct Job Classification: The prevailing wage rate that applies to each worker is dependent on their classification and scope of work.

Make sure to pay attention to the counties that are relevant to your project when selecting the rate.

5. Determine the Prevailing Wage Rate: The prevailing wage rate is divided into two parts. The base hourly rate and fringe benefits. Add these two components together to get your straight time total hourly prevailing wage rate. Remember to consider any footnotes or adjustments that apply to your job classifications.

Overtime Calculation; Multiply the Basic Hourly Rate by 1.5 then add the fringe benefits. This will give you the rate for compensating your workers.


In Summary


Accurate calculation of Davis Bacon Prevailing Wage Rates is crucial for compliance. By adhering to these guidelines and utilizing online resourced from the DOL, contractors can navigate through prevailing wage laws effectively for an compliant project.


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