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Construction glossary
Construction Glossary •
Davis-Bacon
What is Davis-Bacon?
Davis-Bacon refers to the Davis-Bacon Act of 1931, a pivotal labor law in the United States that impacts the construction industry. Established by Congress, this act ensures that workers on federal construction projects are paid at least the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. This commonly applies to federally funded or assisted construction projects such as public buildings, highways or dams. The main goal of this law is to prevent non-local or out-of-state contractors from low-balling local firms on wages, providing a level playing field for all contractors and protecting local labor markets.
Trusted by trade contractors across the country
Other construction terms
Labor Burden
What is Labor Burden?
Labor burden in the construction industry refers to the additional costs borne by a construction firm beyond direct wages paid to employees. It encapsulates all indirect expenses associated with emplo...
Revenue Recognition
What is Revenue Recognition?
Revenue recognition in the construction industry is a principle that determines when a company earned revenue is considered. It's not as simple as recognizing revenue when cash exchanges hands. Rather...
Performance Obligation
What is a Performance Obligation?
A Performance Obligation in the construction industry refers to a commitment or liability that a contracting party has to perform and fulfill, according to the terms stipulated in a contract. It inclu...
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