Prevailing wage is the minimum wage and fringe-benefit rate that contractors must pay laborers and mechanics on government-funded construction projects. Federal Davis-Bacon Act applies to federally funded work above $2,000. Most states have "Little Davis-Bacon" laws applying similar requirements to state-funded work, with thresholds and trade definitions varying by state.
Prevailing wage rates are determined by U.S. Department of Labor (or state labor department) surveys and are published per county and per trade. Compliance requires weekly certified payroll submission, posted notice on site, and apprentice-ratio compliance. Contractors who win prevailing-wage work without understanding the actual labor cost commitment frequently lose money on the project.