The big difference is cash.
Under Davis-Bacon, cash above the base rate can offset the fringe. Under the Service Contract Act, a higher wage does not satisfy it.
The short answer, then the detail.
How it works
- Davis-Bacon: the prevailing wage is a base rate plus fringes, met with cash, contributions or both.
- Service Contract Act: the fringe sits on top of the wage and is measured per employee.
What to watch
- Davis-Bacon credit is capped at the hourly cost averaged over all hours the worker logs in the year.
- The Service Contract Act applies to all paid hours up to 40 a week and 2,080 a year per contract.
What CFH does
- Keeps separate models for each rule set when you work under both.
- Aligns eligibility so credit is not lost.
General information, not legal advice. Your wage determination and contract clauses govern, and contracts counsel decides how they apply to you. We bring counsel in.
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