Department of Labor Publishes Final Rule Updating Davis-Bacon and Related Acts Regulations

Department of Labor Publishes Final Rule Updating Davis-Bacon and Related Acts Regulations

On August 23, 2023, the Department of Labor (DOL) published the final rule that updates regulations issued under the Davis-Bacon and Related Acts. This is the first comprehensive regulatory review in nearly 40 years. Revisions to these regulations will promote compliance, provide appropriate and updated guidance, and enhance their usefulness in the modern economy.

Please note the following:

  • The final rule is effective on October 23, 2023.
  • Provisions of this final rule regarding wage determination methodology and related part 1 provisions prescribing the content of wage determinations may be applied only to wage determination revisions completed by the Department on or after October 23, 2023. Except with regard to § 1.6(c)(2)(iii), the provisions of this final rule are applicable only to contracts entered into after October 23, 2023.
  • Many of the amendments to part 5 of the regulations are regulatory changes that codify the Department of Labor’s current practices and interpretations of existing regulations. As a result, such changes do not, in practical terms, impose new obligations on contractors or contracting agencies.
  • For contracts that lock-in on or after the final rule effective date, October 23, 2023, Contractors should consider the changes in the final rule when analyzing internal controls, developing their bids, and negotiating contract pricing.
  • Contract clauses and related matters section of the rule covers the required contract clauses inserted into contracts.

Multifamily Implementation

The Office of Multifamily Production is in the process of modifying the Form HUD-92554M, Supplement to Construction Contract, to incorporate the construction clauses, subject to OMB Paperwork Reduction Act approval.

See the DOL Final Rule for additional information.