Davis-Bacon Wages Definition
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).