How to read a Davis-Bacon wage determination

A line-by-line guide to the wage determination attached to federal construction bids: construction types, rate codes, fringes, missing trades and modifications.

By the Seal the Bid team · Updated October 21, 2026

Every federal construction solicitation over $2,000 includes a wage determination (WD): the minimum hourly pay for each trade on the job. It looks like a wall of codes, but you only need to read a few parts to price your labor correctly. (New to the rules themselves? Start with Davis-Bacon wages explained.)

New to the term? Read prevailing wage explained, or run the numbers with the prevailing wage calculator.

Free tool: Turn wage determination rates into a real hourly cost with the free labor burden calculator.

1. The header

  • General decision number and modification number, for example "Modification 3". Use the one attached to the solicitation, and watch amendments for a newer one.
  • State and county: must match the job's location.
  • Construction type: building, heavy, highway or residential. A roof on a federal office is usually "building"; a culvert is usually "heavy" or "highway". The solicitation chooses; if it looks wrong, ask the contracting officer before you bid.

2. The rate table

Each row is a trade classification (roofer, electrician, plumber, laborer and so on) with:

  • Rates: the minimum basic hourly wage.
  • Fringes: the minimum hourly fringe benefit, paid as benefits, as extra cash, or a mix.

Your cost per hour for that trade starts at rate + fringe, before payroll taxes, insurance and overhead.

3. The codes in front of each group

  • A union code (letters and numbers, such as an electricians' local) means the rate comes from a collective bargaining agreement that prevails in the area. You don't have to be union, but you must pay at least that rate.
  • Codes starting with SU mean the rate came from a Labor Department survey.
  • Codes starting with UAVG mean a weighted average of union rates.

The legend at the bottom of every WD explains the codes for that document.

4. Trades that aren't listed

If you need a classification the WD doesn't list (a specialty installer, for example), it isn't a free-for-all. After award, the contractor requests an added classification and rate through the contracting officer, using a conformance request (SF-1444). Price the work as if the closest related trade's rate applies, and mention it in your questions before bidding.

5. Modifications

WDs are updated over time. A modification published shortly before bids are due may or may not apply, depending on timing and on whether the agency issues an amendment. Simple rule: price with the WD in the latest amendment, and acknowledge every amendment.

Checklist before you price labor

  1. Right county and construction type?
  2. Latest modification from the amendments?
  3. Every trade you'll use is listed (or noted)?
  4. Rate + fringe + your burden in every labor line?
  5. Time for weekly certified payroll in your overhead?