Back in November, congress passed the Bipartisan Infrastructure Deal that is a once-in-a-generation investment. Many wonder what the deal entails and how it will affect the construction industry. We have laid out in detail what the Bipartisan Infrastructure Law is, what it plans to accomplish, how it will affect Davis-Bacon requirements and what projects are subjected to Davis-Bacon Labor Standards.

What is the Bipartisan Infrastructure Law?

The Infrastructure Investment and Jobs Act is a once-in-a-generation investment to rebuild America’s roads, bridges and rails, offer high-speed internet access to every American, expand access to clean drinking water, create more environmental justice and invest in communities.

What Will the Bipartisan Infrastructure Law Accomplish?

  • Combined with the Biden Administration’s Build Back Better Framework, this legislation will:
  • Add on average 1.5 million jobs per year for the next 10 years.
  • Deliver clean water to all American families and eliminate lead service lines.
  • Ensure access to reliable high-speed internet to every American.
  • Repair and rebuild roads and bridges with a special focus on climate change mitigation.
  • Improve transportation options and reduce greenhouse gas emissions.
  • Upgrade the nation’s airports and ports in an effort to strengthen our supply chains and prevent disruptions.
  • Make the largest investment in passenger rail since the establishment of Amtrak.
  • Create a national network of electric vehicle (EV) charging stations.
  • Upgrade power infrastructure to help achieve a zero-emissions future.
  • Protect the nation’s infrastructure against the impacts of climate change, cyber-attacks and extreme weather.
  • Clean up Superfund and brownfield sites, reclaim abandoned mines and cap orphaned oil and gas reserves.

How Does the Bipartisan Infrastructure Law Affect Davis-Bacon Requirements?

The Bipartisan Infrastructure Law will apply Davis-Bacon labor standards to federally-funded or assisted construction projects in three different ways:

  1. Adds funding to programs previously approved by an existing Davis-Bacon Related Act.
  2. Adds new programs to existing Davis-Bacon Related Act umbrella
  3. Includes provisions to provide that Davis-Bacon labor standards apply to all construction projects receiving funding under certain programs created or funded by the Bipartisan Infrastructure Law.

What Are the Basic Provisions or Requirements of the Davis-Bacon Related Actions?

The Bipartisan Infrastructure Law requires certain actions to authorize funding for construction programs based on the part of federal funding agencies, funding recipients and construction contractors.

Federal Funding Agencies

There are other requirements but some of the top most notable requirements for the federal funding agency to do include:

  • Notify potential funding recipients that the Davis-Bacon labor standards are applicable to any construction projects that receive the relevant Bipartisan Infrastructure Law funding.
  • To ensure that the funding recipients require the Davis-Bacon contract clauses and applicable wage determinations be inserted into all contracts for construction projects that are receiving the federal funding.
  • Provide guidance to funding recipients.
  • Take steps to ensure all the requirements are met on the funded projects

Funding Recipients

Along with other requirements, funding recipients must:

  • Ensure that the Davis-Bacon contract clauses and applicable wage determinations are inserted into any construction contracts
  • Provide guidance to sub-recipients and contractors
  • Conduct sufficient monitoring
  • Receive and review certified payrolls. If needed, also forward certified payrolls to the federal funding agency.
  • Both the federal funding agencies and the funding recipients must withhold payments to the prime contractors in an amount sufficient to cover any unpaid prevailing wages owed to workers or suspend any further payments

Please note, if there is any failure to take these actions, funding may be revoked.

Contractors and Subcontractors

There are other requirements as well but top ones include:

  • Laborers and mechanics who work on the site of work must be paid the Davis-Bacon prevailing wages listed in the applicable wage determinations which are included in the contract
  • Maintain an accurate record of hours worked and wages paid. This includes fringe benefit contributions
  • Submit certified payrolls to the contracting agency/funding recipient each week

What Projects Are Subject to Davis-Bacon Labor Standards?

Roads, bridges and public transportation

This will include the Surface Transportation Reauthorization Act and Surface Transportation Investment Act funding. The provided funding will go to replace and repair bridges as well as expand transit systems and support clean transportation. This will include major project competitive grant programs. Funds will go to repair the transit system backlog.

Airports, ports and waterways

There will be increased funding for airport improvement grants for runways, gates and taxiways. This will also provide funding for airport terminal improvements and improve air traffic control infrastructure. Funding will go to supplies for waterways and coastal infrastructure, inland waterways, port infrastructure and land ports of entry.

Water infrastructure, power and grid

Funding will be increased for Drinking Water and Wastewater Infrastructure Act of 2021 and lead service line replacement. More funding will go toward grid reliability and resiliency as well as technologies like carbon capture, hydrogen, direct air capture and energy efficiency to support critical minerals and other supply chains for clean energy.

Enhanced disaster resiliency

Supplies will be funded for cybersecurity, flood and wildfire mitigation, coastal resiliency, ecosystem restoration and heat stress. Low-income individuals will have prioritizing assistance funding provided to them for home weatherization.

Low carbon and zero emission buses and ferries

There will be funding for zero-emission buses, bus facilities and bus testing facilities as well as funding for the construction of ferry boats and ferry terminal facilities.

Electric vehicle charging

Funds will go to alternative fuel corridors and building out a national network of electric vehicle charging infrastructure with a special focus on rural disadvantaged and hard-to-reach communities.

Addressing legacy pollution

Increases to funding will go to cleaning up brownfield and superfund sites. Many funds will go to reclaim abandoned mine lands and plug orphan oil and gas wells.

Passenger and freight rail

There will be funding for the Amtrak National Network and Northeast Corridor with increases for freight rail and safety.

Additional Information: