Prevailing Wage

Prevailing wage requirements apply to hydrovac work performed on federal projects under the Davis-Bacon Act and on many state and municipal projects under state prevailing wage laws. The prevailing wage rate for a given job classification in a specific geographic area is determined through surveys of wages paid on comparable private-sector projects and is intended to reflect the locally prevailing rate for that trade.

For hydrovac contractors, prevailing wage requirements affect labor costs significantly. The prevailing wage rate includes a base hourly wage plus a fringe benefit rate that covers health insurance, pension, vacation, and training contributions. Total prevailing wage rates for equipment operators, which is the classification most commonly used for hydrovac operators, can be 50 to 100 percent higher than the contractor's standard labor rates.

Compliance with prevailing wage requirements involves detailed record-keeping, including certified payroll reports that document hours worked, classifications used, and wages paid for each worker on the project. Violations can result in back-pay liability, penalties, debarment from future public projects, and criminal charges in severe cases. Hydrovac contractors bidding on public work must factor prevailing wage rates into their pricing to maintain profitability.