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Construction glossary
Construction Glossary •
Prevailing Wage
What is a Prevailing Wage?
A Prevailing Wage refers to the hourly rate, benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area. In the construction industry, it's the standard wage contractors and subcontractors must pay their workers when working on government projects. It's derived from the Davis-Bacon Act of 1931 which mandates that workers on federal construction projects must be paid at least the prevailing wages in the local area. The goal is to maintain fairness and prevent undercutting of wages. It includes various types of construction jobs from carpentry, electricians, ironworkers to bricklayers. The rate differs from location to location and job to job.
Trusted by trade contractors across the country
Other construction terms
Conditional
What is Conditional?
In the construction industry, the term "conditional" typically refers to a state or situation where certain obligations, requirements, or criteria must be met for a particular outcome or transaction t...
Contract
What is a Contract?
A contract in the construction industry represents a legally binding agreement between two or more parties. Each party has responsibilities they are obligated to fulfil. Typically, it involves a party...
Long-Term Assets (or Noncurrent Assets)
What are Long-term Assets (Noncurrent Assets)?
Long-term assets, also known as noncurrent assets, are significant for the construction industry because they represent valuable resources that companies expect to benefit from over a future period ex...
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