Davis-Bacon Prevailing Wage and Certified Payroll on Public Projects

Davis-Bacon prevailing wage rules decide what you owe every laborer and mechanic on a federally funded or assisted construction job in San Antonio, and Texas has its own prevailing wage law for state and local public works. Public construction pays by different rules than private work. If a project uses federal money, or public money in Texas, the contract sets the minimum wage for each worker and the market rate stops being the floor. Missing that before you price labor is one of the most expensive mistakes a bidder can make. Treat what follows as a general overview, not legal advice; the contract documents and the agencies linked below control.

When Davis-Bacon applies

The U.S. Department of Labor's Davis-Bacon and Related Acts page says the Act covers contractors and subcontractors on federally funded or assisted contracts over 2,000 dollars for the construction, alteration or repair of public buildings or public works, including painting and decorating. On those contracts, laborers and mechanics must be paid no less than the locally prevailing wages and fringe benefits for similar work in the area.

The "Related Acts" matter in San Antonio because they reach projects a federal agency does not own. DOL explains that the prevailing wage provisions also apply where federal agencies assist construction through grants, loans, loan guarantees, insurance and similar financing. A city, school district or housing authority project can be covered because of where part of the money came from. Read the funding section of the bid documents before assuming a job is private-wage work.

Overtime has its own rule. DOL notes that on prime contracts over $100,000, the Contract Work Hours and Safety Standards Act requires laborers and mechanics, including guards and watchmen, to be paid at least one and one-half times their regular rate for every hour over 40 in a workweek.

What a Davis-Bacon prevailing wage includes

DOL's wage determination and conformance FAQ defines the prevailing wage as the basic hourly rate plus any fringe benefit rate listed for a classification. You can meet the total entirely in cash or with a mix of cash and bona fide fringe benefits. If your company does not provide qualifying benefits, the fringe amount is paid in cash on top of the base rate, and that belongs in your labor price.

Wage determinations are also written for a type of construction, and the rates differ between types:

One project can include more than one type. DOL's All Agency Memorandum 251, issued August 15, 2025, updated the threshold: work in a different construction category generally calls for a separate wage determination when it exceeds either 20% of total project cost or $3.3 million. Ask the contracting agency which determinations apply. On the determination itself, an SU rate is a weighted average of survey data, UAVG is a weighted average of union rates, and other prefixes (PLUM, for example) come from a collective bargaining agreement.

The 2023 rule update: what is in force

DOL's final rule page says the rule "Updating the Davis-Bacon and Related Acts Regulations" was published August 23, 2023 and took effect October 23, 2023. On June 24, 2024, a federal court in the Northern District of Texas issued a nationwide preliminary injunction against three provisions:

• the provision distinguishing material suppliers from contractors and subcontractors

• the provision requiring prevailing wages for delivery truck drivers' onsite time beyond a minimal amount

• the provision applying the Davis-Bacon requirements by operation of law when an agency mistakenly left the clauses out of a contract

DOL states that the remainder of the final rule remains in effect. On June 24, 2026, the same court's Lubbock Division issued a final order that, according to the Associated General Contractors of America, the plaintiff, holds unlawful and vacates those three provisions nationwide after DOL stopped contesting the suit. As of October 2026, DOL's rule page still describes the 2024 injunction, so check it and your contract clauses again before you bid.

Wage determinations

Every covered contract carries a Davis-Bacon wage determination: the list of worker classifications and minimum hourly rates and fringe benefits for that county and type of construction. Federal wage determinations are published on SAM.gov, where the wage determination search lets you look one up by its WD number or start under Public Buildings or Works. DOL describes two kinds: general wage determinations, which do not expire and are posted on SAM.gov, and project wage determinations, which an agency requests for one named project and which typically expire after 180 days. Before you price labor:

1. Find the wage determination number in the solicitation and pull the full document.

2. Match every trade you plan to use, yours and your subcontractors', to a classification on it.

3. Note any trade that is missing. Unlisted classifications have to be resolved through the contracting agency, not guessed.

4. Compare the rates and fringe amounts to what your crews actually earn. The gap is real cost, so price it.

When the rates lock in

Which revision applies depends on how the job is bought and how it is funded, and the contracting agency decides which wage determination goes in your contract. On direct federal contracts the timing rules are in FAR 22.404-6; DOL's rule at 29 CFR 1.6 also covers federally assisted projects:

• On sealed bids, a revision issued at least 10 calendar days before bid opening applies. One issued less than 10 days before bid opening still applies unless the contracting officer finds there is not reasonable time left to notify bidders. One received or published after bid opening generally does not apply, except under the 90-day rule below.

• On negotiated contracts, a revision received by the agency or published on SAM.gov before award applies.

• After award, modifications generally do not apply, so the determination typically sets minimum rates for the whole contract term. A change that adds substantial work, or an exercised option, brings in the most recent revision.

• On sealed bids, if the contract is not awarded within 90 days after bid opening, a modification to a general wage determination published on SAM.gov before award applies unless the agency gets an extension from DOL's Wage and Hour Division.

• Federally assisted programs can have their own lock-in rules. Some federally assisted housing projects, for example, tie the rates to the start of construction or an earlier financing milestone.

Before you price the job, ask the contracting officer or the funding agency which wage determination and revision number apply to your contract.

When a trade is missing: conformance requests

If the work needs a classification the wage determination does not list, the fix is a conformance. DOL says the contracting agency submits the request on Form SF-1444, usually developed with the prime contractor, subcontractors and workers. It is approved only when no listed classification performs the work, the classification is actually used in the area's construction industry, and the proposed rate bears a reasonable relationship to the rates on the determination. DOL is plain that wanting to pay less than a listed rate is not grounds for a conformance.

Certified payroll and Form WH-347

DOL's WH-347 instructions say each contractor and subcontractor must submit certified payroll every week, to the federal agency if it is a party to the contract, or otherwise to the applicant, sponsor or owner. Using the WH-347 form itself is optional, but the weekly payroll information is not. The current form shows OMB control number 1235-0008, expiring January 31, 2028.

The instructions spell out the details reviewers check:

• Worker and classification. Each worker's identifying information and the classification for the work performed.

• Hours and rates. Daily straight-time and overtime hours, hourly rates, fringe benefit credits or cash in lieu of fringes, deductions and net pay.

• Split classifications. A worker who does work in more than one classification must get at least the right rate for the hours in each one, shown on separate rows. Without that breakdown, the worker must be paid the highest applicable rate for all hours.

• Apprentices. Only apprentices registered in a DOL or state apprenticeship program are marked as such, with their level of progression.

• Statement of Compliance. It is signed by the contractor or subcontractor and carries federal false-statement penalties, so it should be checked against time cards, not filled in from memory.

The contract clauses in 29 CFR 5.5 add rules that catch new public-work bidders. The prime contractor is responsible for submitting payrolls for all subcontractors. Payroll records must be kept for at least three years after all work on the prime contract is completed. The wage determination and the Davis-Bacon poster (WH-1321) must stay posted where workers can easily see them. Electronic submission needs a legally valid electronic signature, and DOL notes a scanned signature does not qualify. If wages go unpaid or payrolls are missing, the agency can withhold or suspend contract payments.

Texas prevailing wage on public works

State and local projects can carry their own wage rules. The Texas Workforce Commission's prevailing wage page explains that under Government Code section 2258.022, the rate is set either from a survey of wages for similar work in the locality or from the DOL Davis-Bacon rate. TWC also notes that the obligation applies to subcontractors and contractors alike, even if a prime's subcontract leaves the rates out, and that section 2258.024 requires records showing every worker was paid at least the prevailing rate for all time on the project. Some jobs are covered by both state and federal rules; the contract says which rates apply.

On City of San Antonio construction contracts

The City's Capital Delivery Department runs a Labor Compliance unit that monitors all City construction contracts for prevailing wage compliance under Government Code Chapter 2258, City Ordinance 2008-11-20-1045 and federal laws including the Davis-Bacon Act. The City requires weekly certified payrolls through LCPtracker, interviews laborers and mechanics on field visits, and lists a penalty of $60 a day per occurrence per employee for violations. The unit also offers one-on-one help with certified payroll submissions. To bid a City public work such as construction, the City's Become a Vendor page says to register with CIVCAST; other City solicitations use SAePS.

Federal Davis-Bacon vs. Texas prevailing wage

How the rules show up on a San Antonio project

An interior renovation of a public building uses a building wage determination, and painting is covered work, so commercial painting and drywall repair on a covered job is priced at the matching classification rates on the determination. Parking areas fall under highway construction when they are not incidental, which matters for parking lot paving and striping. Slabs, footings and flatwork for commercial concrete and foundation work each need the right classification on the determination. Every crew on site adds a weekly payroll to collect, check and submit, so schedule that office time like field time.

A bidder's checklist

• Confirm the funding sources and which wage rules the contract invokes.

• Pull the wage determination, confirm the type of construction and map every trade to it.

• Check SAM.gov for wage determination revisions right up to bid opening or award, and confirm with the contracting officer which revision your bid should carry.

• Price weekly payroll preparation, review and record keeping as real staff time.

• Put the wage clauses and payroll deadlines in every subcontract, and ask subs how they will produce weekly certified payroll before you award.

• Track hours by classification on the time card from day one.

• Post the wage determination and the WH-1321 poster at the site, and keep payroll records for at least three years after the work is done.

How Veteran Set-Asides and SBA VetCert Work on Public Construction

Set-asides decide who can compete for a public job; prevailing wage rules decide what you pay once you win it. For SBA VetCert for SDVOSB and VOSB firms, Texas VetHUB, SAM.gov registration and how buyers verify a claim, see veteran set-asides and SBA VetCert in San Antonio.

If you are getting ready for public work, start with writing a construction capability statement, and see tenant improvement in San Antonio for how interior projects are permitted. 214 Veteran Solutions is a general contractor in San Antonio that plans and manages projects and coordinates licensed trade contractors; see our government construction page.

Next step

Planning a federally funded or public project in San Antonio and want the scope and wage rules sorted out before anyone prices labor? Call (210) 796-3695, request an estimate or book an estimate consultation with 214 Veteran Solutions, a veteran-owned contractor in San Antonio.