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Davis-Bacon: Your Bid Package and Construction Contract Documents Must be Compliant

Updated: Jul 27

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🧾 Davis-Bacon: Your Bid Package and Construction Contract Documents Must be Compliant

This guide is designed for contracting agencies responsible for federally funded construction projects subject to Davis-Bacon requirements. It applies to General Wage Determinations, which are the most commonly used version in federally funded construction. Project Wage Determinations—used in rare or specialized cases—are not covered here.


If Davis-Bacon applies, your bid and contract documents are your legal foundation for payroll enforcement, monitoring, and dispute resolution. Here’s what must be included:


📄 1. The Full General Wage Determination

  • Must reflect correct location, construction type, and job classifications

  • Latest modification number and publication date must be shown

  • Must be physically included in the bid specs and contracts

  • If multiple construction types apply (e.g., heavy and building), include all applicable determinations

  • 🕙 Sealed Bids: If a revised general wage determination is issued ≥10 days before bid opening, it must be used. If issued <10 days before, it still applies unless the agency shows bidders couldn’t be notified in time

  • 📄 Negotiated Contracts: Always use the most current wage determination available at time of award, no matter how recently it was updated

  • 🔁 Change Orders (Both Types):

    • If the change adds new construction work or extra time not originally obligated, use the latest wage determination

    • No update needed if the change is just more time to finish the original scope


📘 2. Mandatory Clauses from 29 CFR § 5.5

These regulatory clauses cover:

  • Worker classification

  • Payroll submission and certification (WH-347)

  • Enforcement rights and remedies (including overtime)


📎 3. Related Labor Law Provisions

  • Copeland Anti-Kickback Act (29 CFR Part 3): Addresses unlawful payroll deductions

  • Contract Work Hours and Safety Standards Act (CWHSSA): Requires overtime pay and limits weekly hours

  • These must also be incorporated verbatim for full labor law compliance.


📑 4. HUD-4010 Form: “Federal Labor Standards Provisions”

  • Federally funded housing and community development projects must include HUD-4010

  • This form summarizes key labor standards, Davis-Bacon enforcement authority, and contractor responsibilities

     ✅ Required for HUD programs like CDBG-DR, HOME, and NSP

  • Must be incorporated into contracts and subcontracts alongside the wage determination


🔗 5. Flow-Down Language for All Tiers

  • Every subcontract (regardless of tier) must include Davis-Bacon clauses and the wage determination

  • This ensures subs are held to the same compliance standards

  • Flow-down language must be clear, enforceable, and mirror the prime contract


🧾 6. Provisions Specific to Funding Source

Depending on your program (e.g., HUD, DOT, EPA):

  • You may need additional clauses that are program-specific.

  • Always check funding source guidance and agency handbooks (like HUD’s Contracting Guidance for Labor Standards)


📌 Why It Matters

Leaving out wage determinations or required clauses doesn’t just invite mistakes—it triggers serious risks:

  • Workers may be underpaid and file formal complaints

  • Agencies may struggle to enforce wage compliance if the contract doesn’t include the right language

  • The funding agency or DOL can issue findings, demand back wages, or suspend funding


If you have questions about what's to be included in bid packages and construction contract documents, please contact our Davis-Bacon consultants:


You can also reach either of them by phone at 985-900-2320.


Learn more about ARTOVIA’s Davis-Bacon Compliance services and expertise on our Davis-Bacon Compliance page.

 
 
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