Davis Bacon versus Prevailing Wage Rates & Construction

By peter.cholakis@verizon.netUncategorized

Davis Bacon and Prevailing Wages & Construction

Federal Davis Bacon law mandates payment of locally prevailing wages on projects funded by the federal government.  While some argue that Davis-Bacon wage rates cause higher total costs, this is false. Properly administered renovation, repair, maintenance, sustainability, and new construction projects that pays reasonable prevailing wage rates produce a higher percentage (greater then 90%) of project on-time and on-budget, and with higher overall satisfaction levels for project participants and benefactors (building users).

“Properly administered” construction projects are those that practice LEAN Collaborative Construction Delivery Methods such as Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for renovation, repair, maintenance, sustainability, and minor new construction).

Many states also have prevailing wage mandates.

 

 

Repealing such laws hurts taxpayers and workers. After Kansas’ prevailing wage law was repealed, wages fell 11 percent, training programs declined 38 percent, job site injuries rose 19 percent and employer contributions to pensions fell 17 percent. – Study prepared for the State of Kansas.

Highway construction costs are actually higher when workers are paid less.  The cost to build a mile of highway in high-wage states compared with low wage states was, less per mile less due to higher productivity. – Federal Highway Administration data by the Construction Labor Research Council

Potential savings from wage cuts are outweighed by the loss of income to communities. The annual cost of repealing a prevailing wage law resulted in an estimated at $123 million in lost income and a net tax revenue loss of $6.8 million and a state of low of income of $318 million to $384 million. – Wisconsin & Missouri Studies

Cost overruns are more likely without prevailing wage laws. A repeal of a state prevailing wage law was followed by a tripling of cost overruns, which was attributed to lower productivity and a less skilled workforce – State of Utah

Davis Bacon Prevailing Wage Surveys

The U.S. Department of Labor (DOL) conducts wage surveys and determines the local prevailing wages.  DOL collects project wage data and then determines the prevailing rates for each construction classification in each county and publishes the rates at www.wdol.gov.

U.S. Congress and Davis Bacon

Despite the above  “anti-worker” groups and/or lobbyists continue to remove Congress to remove federal Davis Bacon protections and block the use of project labor agreements (PLAs) on federal construction projects.

via www.4BT.US – Efficient construction project delivery, unit prices books, training, services, and technology.