A contractor‑friendly glossary of prevailing wage basics: what “prevailing wage” really means, how to use wage determinations, what certified payroll requires each week, and how classifications, apprentices, and fringe benefits affect pay. Use this quick reference to keep bids accurate and payroll compliant on government‑funded construction projects.
Written by C and M Companies Inc
Created on: December 10, 2025
Core Prevailing Wage concepts & acronyms you’ll see on every prevailing‑wage job
Prevailing wage
Definition. The minimum basic hourly rate plus required fringe benefits workers must receive for a specific trade/classification and locality on covered construction projects. The applicable schedule (the Wage Determination) must be posted at the jobsite.
Why it matters for payroll
Your pay lines must match the actual classification of work performed, not just job titles; misclassification is one of the most common causes of underpayment findings.
Davis‑Bacon Act (DBA)
Definition. Federal law (1931) requiring payment of locally determined prevailing wages to laborers and mechanics on federally funded or federally assisted construction contracts of $2,000+; includes posting and weekly certified payroll obligations.
Purpose
To prevent wage undercutting and keep competition focused on quality and efficiency, not below‑market labor rates.
Davis‑Bacon and Related Acts (DBRA)
Definition. A group of statutes that extend DBA labor standards to federally assisted construction (e.g., grants/loans to state or local entities). Even when you don’t contract directly with a federal agency, the DBA obligations can still apply.
Payroll takeaway
DBRA jobs still require the correct WD selection, jobsite posting, and weekly certified payroll—just like direct federal projects.
Wage Determination (WD)
Definition. The official schedule of basic hourly wages and fringe benefits by classification for a county/region and construction type (Building/Heavy/Highway/Residential). WDs must be included in solicitations/contracts and posted onsite.
Finding the right WD
Match project location and construction type; contracting officials include WDs in bid documents.
U.S. Department of Labor – Wage and Hour Division (WHD)
Definition. The DOL office administering DBA/DBRA compliance, wage determinations, and certified payroll requirements.
Certified payroll (Form WH‑347)
Definition. The weekly report template (the “WH” prefix refers to Wage and Hour Division) used to certify worker hours, classifications, wages, fringes, deductions, and the Statement of Compliance. Use of the form is optional, but weekly certified payroll reporting is mandatory on covered projects.

Prevailing Wage Public Works projects are a great way for small contractors to bid on good projects.
What to post & submit
Keep the WD posted onsite and submit WH‑347 weekly (with electronic signatures permitted); ensure the Statement of Compliance is complete and accurate.
SAM.gov (System for Award Management)
Definition. The official portal hosting federal Davis‑Bacon wage determinations (and other award system functions). It’s where you search, download, and monitor WD updates.
Copeland “Anti‑Kickback” Act
Definition. Federal law and regulations (29 CFR Part 3) prohibiting wage kickbacks and governing permissible payroll deductions; tightly linked to the certified payroll Statement of Compliance.
Contract Work Hours and Safety Standards Act (CWHSSA)
Definition. Federal statute requiring time‑and‑a‑half for hours over 40 in a week on many federal/public construction contracts and authorizing liquidated damages for violations; often incorporated alongside DBA/DBRA clauses.
McNamara‑O’Hara Service Contract Act (SCA)
Definition. The federal prevailing wage law for service contracts (not construction). Payroll teams should recognize the distinction so they don’t mix SCA rates with DBA construction classifications.
Classification of work
Definition. The trade/craft category (e.g., Electrician, Carpenter, Laborer) that matches the worker’s actual tasks; pay must meet the WD for that classification, and time must be recorded accordingly.
Apprentice (registered)
Definition. A worker individually registered in a bona fide apprenticeship program (DOL Office of Apprenticeship or recognized State agency). Apprentices may be paid below journeyman WD rates only when program ratios/supervision rules are followed.
Fringe benefits (bona fide)
Definition. Non‑cash benefits (e.g., health, pension, training, vacation) that count toward the WD fringe component when they meet bona fide standards and are documented appropriately. Check with your Human Resources professional for any fringe benefit questions.
Nevada note
On Nevada public works, contractors may credit bona fide fringes toward the rate only if annualized, and must itemize fringes on certified payroll (NRS 338.035; NAC 338.094).
Statement of Compliance
Definition. The signed certification (page 2 of WH‑347 or equivalent) attesting that the payroll is accurate and that all laborers/mechanics were paid not less than the required DBA/DBRA rates (including fringes).
General vs. Project wage determinations
Definition.
- General (area) WDs cover most projects in a locality and remain valid until revised; agencies select and include them in bid specs.
- Project WDs are issued for specific projects and have limited effective periods.
Secondary site of the work
Definition. Locations other than the primary jobsite where a significant portion of the building/work is constructed specifically for the project; may require WD coverage and contractor notice to the Government under FAR 52.222‑5.
Construction Wage Rate Requirements clause (FAR 52.222‑6)
Definition. The standard contract clause that incorporates the WD, requires weekly pay at not less than WD rates, and mandates posting and compliance regardless of contractual relationships (prime vs. sub).
Federal vs. Nevada: what changes (to be expanded in Part 2)
Stay tuned for Part 2, coming next week
- Nevada public bodies & thresholds; posting requirements (NRS 338.020).
- Fringe annualization and penalties (NRS 338.035).
- Certified payroll itemization of fringes (NAC 338.094).
Article Use Disclaimer
This blog post is for informational purposes only and does not constitute legal, financial, or professional advice. Use at your discretion and always check with appropriate experts. [Read full disclaimer here].
Thank you for reading.
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