What types of projects establish prevailing wage rates?

Prevailing wage rates are typically established for federally funded projects because these projects are subject to the provisions of the Davis-Bacon Act and related legislation. This act mandates that workers be paid the locally prevailing wages and benefits for similar work on similar projects in the area where the work is performed. The rationale behind this is to ensure that federal funds do not undermine local labor standards.

Federally funded projects often include infrastructure developments such as roads, bridges, and public buildings, which rely on taxpayer money. As a result, there is a significant focus on ensuring fair wages for workers involved in these projects, promoting both economic fairness and local wage standards.

In contrast, residential projects, privately funded development, and commercial projects may not be automatically governed by prevailing wage laws unless they are receiving federal assistance or are subject to specific state or local wage laws, which can vary widely.