Published date: 06/16/2021

Welcome to the world of public works construction, where you’ll become very familiar (more than you would like, I’m sure) with terms like Davis-Bacon and certified payroll reports (CPR).

For those just getting started on federal government construction projects (or those looking for a refresher), you’ve come to the right place.

Let’s get right to it…

What is the Davis-Bacon Act?

The Davis-Bacon Act, or DBA for short, is a United States federal law that mandates the payment of local prevailing wages on public works projects.

This means any time there is construction, alteration, or repair work done on public buildings or any public works – like bridges, roads, or highways – DBA requirements apply.

We go into more detail about the Davis-Bacon Act here in this article. We also have one-page guides to download and print that give you a crash course in Davis-Bacon for agencies and  Davis-Bacon for contractors.

Who needs to comply with this law?

In short, all awarding bodies and contractors on publicly funded projects.

On the awarding body side (which is typically a public agency), the agency is responsible for enforcing compliance by making sure workers are getting paid prevailing wages. This means collecting CPRs and other required compliance documentation, among many other responsibilities.

On the contractor side, both the prime contractor and every subcontractor reporting to them – including lower-tier subs (the subcontractors of your subcontractors) – must comply with Davis-Bacon requirements. Subcontractors are responsible for paying prevailing wages and submitting certified payroll reports, among other requirements. The prime contractor is responsible for doing the same for their employees; however, they also carry the additional obligation of collecting and reviewing CPRs from the other contractors on the project. Ultimately, they must monitor the compliance of all subs.

Are there any exemptions to the Davis-Bacon Act?

Yes, there are exemptions to the Davis-Bacon Act. Under the Department of Labor’s current 2000 dollar threshold, the Act does not apply to contracts. Additionally, the Act does not apply to contracts for the construction or repair of public buildings or public works that are not paid for in whole or in part with federal funds. It is important to carefully review the specific requirements and exemptions of the Davis-Bacon Act to ensure compliance with federally funded projects.

Are there any specific requirements for apprenticeship programs under the Davis-Bacon Act?

Yes, apprenticeship programs are subject to specific requirements under the Davis-Bacon Act. Contractors working on federally funded construction projects covered by the Davis-Bacon Act are required to pay apprentices at rates specified in the applicable wage determination. These rates are typically lower than the prevailing wage rates for journey-level experienced workers.

Furthermore, they must ensure that apprentices are enrolled in a bona fide apprenticeship program registered with the U.S. Department of Labor (DOL) or a state apprenticeship agency. The program must meet the standards established by the DOL’s Office of Apprenticeship or the applicable state agency.

Contractors are also responsible for accurately reporting the hours worked by apprentices on certified payroll reports and ensuring compliance with all other relevant provisions of the Davis-Bacon Act related to apprenticeship programs.

What is a certified payroll report?

A Certified Payroll Report is an official compliance document that is required on publicly funded projects. It details the worker’s information, type of work performed, wages, benefits, and hours worked. On Davis-Bacon projects, the form typically used is federal form WH-347 — or what some people would call a Davis-Bacon certified payroll report. It’s worth noting that some states, counties, or cities may have their own prevailing wage requirements and may then have their own CPR format.

How and where do I submit certified payroll reports?

Contractors generally submit CPRs to the prime contractor, and the prime then submits to the awarding body overseeing the project. The prime contractor and/or awarding body will have individual requirements on how they collect CPRs. Some adopt electronic systems that allow contractors to submit certified payroll reports online; others collect them via other methods, like postal mail, email, or hand delivery.

Also, keep in mind, if your project involves state funds, other CPR submission requirements may apply. For example, states like California and Washington have an additional requirement to submit CPRs electronically on state-maintained web portals.

Are there consequences for submitting incomplete or inaccurate information on CPRs?

Yes, there are consequences, and you want to do your best to avoid them. Submitting incomplete or inaccurate CPRs, or failing to submit CPRs altogether, could be deemed as non-compliance. This failure to comply can result in withholding of payments, negative audits (which could potentially mean fines), early contract termination, and for the more egregious violations, possible debarment and civil or criminal prosecution.

How to verify the accuracy of CPRs before submission?

Verifying the accuracy of certified payroll reports before submission is a crucial step to ensuring compliance with prevailing wage requirements. To do so, carefully review all information included in the reports, such as hours worked, wages paid, fringe benefits provided, and classifications of workers.

It is recommended to cross-reference the payroll data with timesheets, employee records, and other relevant documentation to confirm the accuracy of the information reported. Additionally, conducting periodic audits or spot checks can help identify any discrepancies or errors that need to be corrected before submission.

What is the most efficient way to help ensure Davis-Bacon and certified payroll requirements are being met?

As mentioned above, there are electronic systems available on the market to assist with this. LCPtracker Professional helps manage labor compliance and certified payroll reporting for prime contractors and awarding bodies/public agencies.

LCPcertified is another cloud-based application that assists with certified payroll reporting, but this system is geared more towards contractors who only have to manage CPRs for their own employees and do not have subcontractors reporting to them.

For a guided tour of either of these electronic systems or any of LCPtracker’s products, please complete this form to connect with one of our product specialists.