AGC is analyzing the 800-page rulemaking to get a solid understanding of the full impact on federal and federally assisted construction projects and will provide education and assistance for members on implementation of the rule and any further developments.

The U.S. Department of Labor (DOL) just announced a massive final rule “Updating the Davis-Bacon and Related Acts Regulations.” The final rule extensively updates regulations issued under the Davis-Bacon and Related Acts that set forth rules for the administration and enforcement of the Davis-Bacon labor standards that apply to federal and federally assisted construction projects. While this was just an announcement, the rule will not be official until it is published in the Federal Register, expected in the coming days.  Once the final rule is published, there will be 60 days until it is effective.

The over 800-page rulemaking, where AGC is cited over 60 times, is being analyzed to get a solid understanding of the full impact such a rulemaking will have on the federal construction market. AGC was successful in paring down some of the more controversial proposals, but a preliminary analysis shows that while more work will be covered, this rulemaking still critically missed an opportunity to improve the wage determination process. The 40-year awaited update reverts to the pre-1983 methodology for determining whether a wage rate is prevailing, also referred to as the “30 percent rule”. Just as proposed, this final rule appears to make it easier on the DOL itself to set prevailing wages with less of the data it already collects, or lack thereof.

AGC will provide education and assistance for members on implementation of the rule in the near future and keep members informed of any further developments.

Find AGC of America’s official statement here.

For more information, contact Claiborne Guy at [email protected] or 703-837-5382.