The Davis-Bacon Act of 1931 established a requirement to pay local prevailing wages for public works projects. It is overseen by HUD’s Office of Labor Relations Davis-Bacon compliance, which is required by many HUD programs. This requirement does not typically apply to HUD 223(f) loans, but does apply to HUD 221(d)(4) loans.

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The Davis-Bacon Act of 1931 requires contractors to pay local prevailing wages for public works projects. This applies to many HUD programs, including HUD 221(d)(4) loans for multifamily construction. This means that contractors working on HUD 221(d)(4) projects must pay the local prevailing wage rate for the area in which the project is located. To learn more about HUD 221(d)(4) loans, click here.

Under the Davis-Bacon Act, contractors are typically only subject to these requirements if they are performing manual labor jobs such as plumbers, elevator mechanics, and ironworkers. Management personnel and architects are exempted from these requirements, though foremen may be covered if they spend more than 20% of each working week on physical labor tasks. The location where the work is performed can also be a criteria for determining eligibility. Broadly speaking, if the labor is conducted at the development site, the worker is probably covered under the Davis-Bacon Act. Source

The penalties for violating the Davis-Bacon Act can be severe. According to the U.S. Department of Labor, contractors who fail to comply with the Act can be subject to civil and criminal penalties, including fines, back wages, and debarment from future contracts.

The U.S. Department of Labor also states that contractors who fail to comply with the Act can be subject to civil and criminal penalties, including fines, back wages, and debarment from future contracts.

The U.S. Department of Labor also states that contractors who fail to comply with the Act can be subject to civil and criminal penalties, including fines, back wages, and debarment from future contracts.

The Davis-Bacon Act of 1931 requires contractors to pay local prevailing wages for public works projects. This requirement applies to many HUD programs, including HUD 221(d)(4) loans. Small businesses that are looking to finance a HUD 221(d)(4) loan should be aware of the Davis-Bacon Act and its requirements. To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, click here.

The Davis-Bacon Act provides benefits to contractors by ensuring that they are paid the local prevailing wages for manual labor jobs, such as plumbers, elevator mechanics, and ironworkers. This is especially beneficial for contractors who are working on public works projects, as they are guaranteed to be paid the local prevailing wages instead of the minimum wage. Additionally, the Davis-Bacon Act provides oversight by HUD’s Office of Labor Relations Davis-Bacon compliance, which helps to ensure that contractors are paid fairly. Source 1 and Source 2.