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Building & Construction Trades Department

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Monday, March 27, 2017

Prevailing Wage Reports - CDOT

New Study Confirms that Davis-Bacon DOES NOT Raise the Cost of Federal Construction Projects

A new study from Dr. Kevin C. Duncan of Colorado State University uses data from highway resurfacing projects in Colorado to examine the cost implications associated with the payment of Davis-Bacon Act prevailing wages on projects funded by the federal government.  Dr. Duncan describes his research study ("An Analysis of Davis-Bacon Prevailing Wage Requirements: Evidence From Highway Resurfacing Projects in Colorado") as an apples to apples comparison of projects performed without prevailing wage requirements and those with such requirements.  Dr. Duncan's conclusions are that "...prevailing wage requirements do not play a statistically significant role in cost outcomes."  Additionally, Dr. Duncan notes that a prevailing wage requirement is not associated with a reduction in the number of bidders on a project.