Davis-Bacon wages are the locally prevailing wages required for public works projects established by the 1931 Davis-Bacon Act and overseen by HUD’s Office of Labor Relations. Compliance with the Davis-Bacon Act is required by many HUD programs, such as HUD 221(d)(4) loans and HUD 232 construction and substantial rehabilitation loans. Davis-Bacon wages are not typically required for HUD 223(a)(7) refinances, as they do not usually involve any construction or substantial rehabilitation work (only minor repairs).

Davis-Bacon wages are required for certain public works projects and are typically higher than regular wages. The Davis-Bacon Act of 1931 established the requirement for public works projects in which workers must be paid the locally prevailing wages, typically referred to as Davis-Bacon wages. Compliance with the Davis-Bacon Act is required by many HUD programs and overseen by HUD’s Office of Labor Relations. Specifically, Davis-Bacon wages are required for HUD 221(d)(4) loans and HUD 232 construction and substantial rehabilitation loans. Davis-Bacon wages are not typically required for HUD 223(a)(7) refinances, as they do not usually involve any construction or substantial rehabilitation work (only minor repairs).

The Davis-Bacon wage requirements have changed several times in response to changes in the national labor market. In one of the most recent changes in 2009, the law adjusted to increase the number of workers covered by these wage requirements. Furthermore, the latest amendment made it easier for workers to file a complaint if they believe they are not being paid the prevailing wage.

The Davis-Bacon Act of 1931 established requirement for public works projects in which workers must be paid the locally prevailing wages, typically referred to as Davis-Bacon wages. Compliance with the Davis-Bacon Act is required by many HUD programs and overseen by HUD’s Office of Labor Relations. Specifically, Davis-Bacon wages are required for HUD 221(d)(4) loans and HUD 232 construction and substantial rehabilitation loans. Davis-Bacon wages are not typically required for HUD 223(a)(7) refinances, as they do not usually involve any construction or substantial rehabilitation work (only minor repairs).

The Davis-Bacon wage requirements have changed several times in response to changes in the national labor market. In one of the most recent changes in 2009, the law adjusted to increase the number of workers covered by these wage requirements. Furthermore, the latest amendment made it easier for workers to file a complaint if they believe they are not being paid the prevailing wage.

The Davis-Bacon Act of 1931 established requirement for public works projects in which workers must be paid the locally prevailing wages, typically referred to as Davis-Bacon wages. This ensures that workers are paid a fair wage for their work, which can help to reduce poverty and inequality in the local area. Additionally, it can help to reduce the cost of construction projects, as workers are more likely to be motivated to work efficiently when they are paid a fair wage. Finally, it can help to reduce the risk of construction projects, as workers are more likely to be more experienced and better trained when they are paid a fair wage. Learn more about Davis-Bacon wages.

No, Davis-Bacon wages are not required for all construction projects. The requirements only apply to projects with construction or significant renovation work. The type of job and the location of the work can also be criteria for determining eligibility. For example, manual labor jobs such as plumbers, elevator mechanics, and ironworkers are typically covered by the Davis-Bacon Act, while management personnel and architects are exempted. Additionally, if the labor is conducted at the development site, the worker is usually covered under the Davis-Bacon Act. However, off-site workers may not be covered, especially if the facility they work in assembles or fabricates parts or tools for other developments.

For HUD loans, the Davis-Bacon wage requirements are not in effect on all loans. If you are refinancing a property with a HUD 223(f) loan and you plan to do some light renovation work, you would generally not be required to pay Davis-Bacon prevailing wages. Only if the work is substantial would these requirements go into effect — say, for a gut rehab or the addition of extra buildings — but this level of activity is not covered by a HUD 223(f) loan.

Davis-Bacon wages are determined by the local prevailing wages in the area where the public works project is located. This is established by the 1931 Davis-Bacon Act and is overseen by HUD’s Office of Labor Relations Davis-Bacon compliance division. More information can be found on the Davis-Bacon Wages page.