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Construction glossary
Construction Glossary •

Certified Payroll

What is Certified Payroll?

Certified Payroll is a specific type of payroll process required for any contractor or subcontractor working on federally funded or assisted construction projects under the Davis-Bacon Act. It is a federal compliance requirement to ensure employees are paid prevailing local wage rates and benefits. Certified Payroll records include the worker's name, their classification, hourly rates of wages paid, daily and weekly hours worked, deductions made, and actual wage paid. It provides transparency for regulators, ensuring fair wages for work conducted. This mandatory weekly submission acts as an assertive step in suppressing wage theft in the construction industry.

Trusted by trade contractors across the country

Other construction terms

Job Cost Structure

What is a Job Cost Structure?

A Job Cost Structure in the construction industry refers to the detailed categorization and allocation of costs associated with a specific construction job or project. These costs are typically divide...
Unit Price Contract

What is a Unit Price Contract?

A unit price contract is a widely used pricing model in the construction industry where general contractors (GCs) provide a fixed price for each unit of work and material (based on the anticipated qua...
General Liability Insurance

What is General Liability Insurance?

General Liability Insurance, particularly applicable to the construction industry, is a specific type of coverage that safeguards construction businesses against financial losses due to liability clai...

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