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What are the applicable prevailing wage compliance.

Good afternoon Experts, Federal funded agency A is paying for a facility fencing project which was completed by the Landlord. Federal funds will be reimbursed to the Landlord for the project cost. Does the prevailing wage compliance applicable to this transaction? Please advise with reference to regulations and requirements. Thank you and have a blessed day. Johnson

1 reply

Feb 6, 2020

The presence of federal funds won't automatically invoke the Davis-Bacon Act. However, it does make it more likely that prevailing wages will be required, and if there's more than one federal program involved, that'd boost the odds of prevailing wage requirements as well. More typically, prevailing wages are required for governmental projects and/or public buildings, as required under Sec. 3142(a) of the Davis-Bacon Act. With that being said, I'll be the first to admit that I'm not an expert on the ins and outs of prevailing wage requirements, though. And, it might be helpful to reach out to a local attorney who's well versed in the Davis-Bacon Act and prevailing wage requirements. They'd be able to review the project documents and related government programs then advise on whether prevailing wages must be paid. But the point remains: Typically, there must be more significant federal involvement than mere funding in order for prevailing wages to be required. Levelset discusses that idea in this article: Does the Davis-Bacon Act Apply to P3 Projects?

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