Short answer: To check Davis-Bacon rates in a subcontractor bid, start with the wage determination named in the bid documents. Confirm each sub priced that determination number and its latest modification. Check that every trade on the job has a classification in it, with the right base rate and fringe. Then read each sub's exclusions for wage language before you carry their number.
The prime contractor answers for every sub's wages, so a sub who priced the wrong rates is your risk.
Key takeaways
- The wage determination in the bid documents sets the minimum wage and fringe for each classification on the job.
- A revised determination issued before bid opening usually applies, even in the last 10 days.
- The prime contractor is responsible for every subcontractor's compliance, at every tier.
- A sub bid that excludes prevailing wage, or names no determination, needs a plug or a call before you carry it.
What does Davis-Bacon require on a public works bid?
The Davis-Bacon Act requires contractors on covered federal construction contracts over $2,000 to pay laborers and mechanics at least the locally prevailing wage and fringe benefits. The same rules flow to many federally funded projects through the Related Acts, such as highway and housing programs. The Department of Labor publishes the rates as wage determinations on SAM.gov.
The contract clauses in 29 CFR 5.5 set the rules a public works estimator prices against:
- Workers are paid at least once a week, at no less than the rate for the work they do.
- Contractors submit certified payroll weekly for each week of covered work.
- Fringe benefits can be paid into a bona fide plan or as an hourly cash equivalent.
- A trade missing from the wage determination needs an added classification, approved through the contracting officer.
- The prime contractor is responsible for compliance by any subcontractor or lower-tier subcontractor.
Many states have their own prevailing wage laws for state and local public works. Those rates and rules differ by state, so read the instructions to bidders on every project.
Which wage determination applies to your bid?
The wage determination in the solicitation applies, as revised before bid opening. Under 29 CFR 1.6, a revised determination issued at least 10 calendar days before a sealed bid opening applies. One issued later still applies unless the agency finds there isn't time to notify bidders.
If the contract isn't awarded within 90 days of bid opening, any revision issued before award applies unless the agency gets an extension from the Department of Labor.
So check the modification number on bid day, not only when the documents first come out. Subs who priced an older modification may be short on every hour of labor.
How do you check prevailing wage in a sub bid?
Check each sub bid in this order before you carry it:
- Find the determination. Note the wage determination number and modification in the bid documents. Add it to your scope sheet and your bid invitation.
- Ask subs to name it. Ask every sub to state the determination and modification they priced. A bid that names none is a question, not a number.
- Match the classifications. Confirm each trade the sub will use has a classification in the determination. Watch for helpers and specialty trades that aren't listed, and confirm any apprentices are in a registered program.
- Check base rate and fringe. A sub who carried the base rate but not the fringe is short on every hour.
- Read the exclusions and qualifications. Look for "excludes prevailing wage", "union rates not included" or "priced at open shop rates". Each one changes what the number covers.
- Plug or clarify. Add a plug for the labor gap, or call the sub and get a revised number before bid opening.
- Check the lower tiers. Ask whether the sub plans to subcontract work. Their subs carry the same wage duty, and you answer for them too.
What does a prevailing wage gap look like on a bid tab?
| Sub A | Sub B | Sub C | |
|---|---|---|---|
| Quoted base bid | $612,000 | $548,000 | $590,000 |
| Wage determination | Current mod | Not stated | Older mod |
| Prevailing wage | Included | Excluded, plug $71,000 | Included |
| Rate difference | None | Covered by plug | Plug $14,000 |
| Leveled total | $612,000 | $619,000 | $604,000 |
Sub B looked $64,000 cheaper than Sub A until the wage exclusion was plugged. This example is illustrative. The plug amounts would come from your own labor hours times the gap between the rates each sub priced and the determination.
What are the most common prevailing wage mistakes on bid day?
- Carrying a sub's number before reading the wage language on the last page.
- Missing a wage determination modification issued in the last weeks before bid opening.
- Forgetting the fringe, or treating an open shop rate as the prevailing rate.
- Assuming a sub's own subs will pay the right rates.
- Listing a sub on the bid form before their number is leveled.
How does software help check prevailing wage in sub bids?
Consight reads each subcontractor proposal (PDF, Excel, or email) and pulls its exclusions and qualifications onto the bid tab. Wage language such as "excludes prevailing wage" then sits beside the number. You can record the project's prevailing wage requirement when you set up the project, and add a plug for any gap. Every cell links to the proposal text behind it, so you can check a sub's wording in seconds before you carry their number.
Randall Schneider, Lead Estimator at Heaney General Contracting, on using Consight:
The software is multiplying my productivity exponentially.
— Randall Schneider, Lead Estimator, Heaney General Contracting
See bid leveling software or read how to compare subcontractor bids.
Frequently asked questions
Where do I find the Davis-Bacon wage determination for a project?
The bid documents name the wage determination for the project. The Department of Labor publishes every determination and its modifications on SAM.gov, where you can search by state, county, and construction type.
Is the prime contractor liable if a subcontractor underpays prevailing wage?
Yes. Under 29 CFR 5.5, the prime contractor is responsible for compliance by any subcontractor or lower-tier subcontractor. Check each sub's wage pricing before you carry it.
What if a trade isn't listed in the wage determination?
The contractor requests an added classification through the contracting officer, and the Department of Labor approves it. Price that trade carefully and ask the sub how they priced it.
Do I have to use a revised wage determination issued after I priced the job?
A revised determination issued at least 10 calendar days before bid opening applies. One issued later still applies unless the agency finds there isn't time to notify bidders. Check for new modifications in the last two weeks before bids are due.
Where Consight fits
Consight is the preconstruction workspace built around this kind of work—from understanding project documents and building scopes to collecting bids, leveling proposals, reviewing risk, and documenting the final award.
Put it into practice on your next project.
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