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Prevailing wage

Prevailing wage rules require contractors on some public construction projects to pay workers at least the locally prevailing wage rates set for each trade.

Whether prevailing wages apply depends on the state and the funding.

  • Federally funded construction: the federal Davis-Bacon Act usually applies, wherever the project is.
  • Texas: Government Code chapter 2258 requires workers on a political subdivision's public works, including county projects, to be paid at least the prevailing wage rate (maintenance work is exempt).
  • Indiana and Iowa: Indiana repealed its state "common construction wage" law in 2015, and Iowa has no general state prevailing wage law, so state-funded county projects usually don't require them. Federal funding can still bring Davis-Bacon rules.

When prevailing wages apply, the bid documents include the wage rates, and you must pay them and submit certified payroll. Price your bid accordingly.

Sources

Last reviewed Oct 30, 2026. This is general information, not legal advice. Laws and thresholds change; check the current statute and the bid documents.

What Is Prevailing wage? | FactWise