The Effective Dates of Revised Wage Determinations: What Contractors Need to Know

The Davis-Bacon Act (DBA) has long been a pivotal piece of legislation ensuring that workers on federally funded construction projects are paid fair wages. With the recent changes to the Act, understanding the effective dates of revised wage determinations has become crucial for contractors. Here's what you need to know:

Revisions to Wage Determinations:

Wage determinations can be revised to keep them current. A revised wage determination replaces the previous one. These revisions can modify some or all rates in a wage determination, such as periodic updates to reflect current rates, or even re-issue a wage determination entirely after a new wage survey.

Adjustments to non-collectively bargained prevailing wage and fringe benefit rates on general wage determinations will be based on U.S. Bureau of Labor Statistics Employment Cost Index (ECI) data. Such rates can be adjusted based on ECI data no more frequently than once every 3 years and no sooner than 3 years after the rate's publication.

Effective Date of Revised Wage Determinations:

The effectiveness of a revised wage determination for a specific contract or project generally depends on the date the revised wage determination is issued. The "issued" date refers to the date a revised general wage determination is published on the DOL-approved website or the date the contracting agency receives actual written notice of a revised project wage determination.

If a revised wage determination is issued before the contract award (or the start of construction when there is no award), it becomes effective for the project with some exceptions:

For contracts via sealed bidding procedures, a revised wage determination issued at least 10 calendar days before bid opening is effective. If issued less than 10 calendar days before bid opening, it's effective unless there isn't reasonable time to notify bidders of the revision.

For projects under the National Housing Act, a revised wage determination is effective if issued before the beginning of construction or the date the mortgage is initially endorsed.

For projects receiving housing assistance payments under section 8 of the U.S. Housing Act of 1937, it's effective if issued before the beginning of construction or the signing of the housing assistance payments contract.

Special Considerations:

If a contract hasn't been awarded within 90 days after bid opening, or if construction hasn't begun within 90 days after initial endorsement or the signing of the housing assistance payments contract, any revised general wage determination issued prior to award or construction is effective for that contract.

Corrections for Clerical Errors:

The Administrator can correct any wage determination containing clerical errors. Such corrections must be included in any solicitations, bidding documents, or ongoing contracts and be retroactive to the start of construction if it has begun.

Pre-award and Post-award Determinations:

A wage determination may not be used for a contract if, prior to the award, the Administrator provides written notice that the wrong wage determination was included or a wage determination was withdrawn by the Department of Labor.

If a contract is entered into without the correct wage determination, the agency must incorporate the correct wage determination into the contract.

Understanding the effective dates of revised wage determinations is essential for contractors to ensure compliance with the Davis-Bacon Act. By staying informed about these changes, contractors can navigate the complexities of the Act and ensure that workers are compensated fairly.