DOL missed an opportunity for meaningful Davis-Bacon reform.
“The 91-year-old Davis-Bacon Act and related regulations are in dire need of modernization and clarity. For decades, watchdogs in the federal government have criticized the DOL’s convoluted method for determining prevailing wage and benefit rates through an outdated and unscientific survey process riddled with errors and inefficiencies.
“In its current form, Davis-Bacon needlessly raises taxpayer-funded construction costs, stifles job creation, undermines productivity and discourages competition from small businesses interested in pursuing federal and federally assisted construction projects. For years, ABC has called for reforms to confusing DOL compliance rules and enforcement policies which—coupled with a dysfunctional wage determination process—have resulted in a broken system.
The proposed rule reverts back to 1983 regulations that do not result in actual prevailing rates, as required by statute.
“While ABC is still reviewing the 432-page rule, it appears the DOL missed an opportunity for meaningful Davis-Bacon reform. For example, the proposed rule reverts back to 1983 regulations that do not result in actual prevailing rates, as required by statute. Reversing course by 40 years is not modernization. Instead, it is even worse public policy catering to special interests embedded in the Biden administration that benefit from the broken status quo.
“Throughout the rulemaking process, ABC will continue to advocate for commonsense reforms to Davis-Bacon regulations that will provide clarity for the regulated community and create accurate and timely prevailing wages. This approach will encourage quality contractors and their skilled workforce to compete to rebuild their communities and give taxpayers the best value for investments in public works projects.”
ABC will encourage its members, industry stakeholders and taxpayers to suggest additional improvements to the Davis-Bacon Act regulations within the 60-day comment period deadline.