Trump's Infrastructure Plan to Include Prevailing Wage Requirements
Prevailing wage rates are often higher than contractors, especially smaller ones, would normally pay. Advocates of prevailing wage say it levels the playing field during the bidding process, keeping contractors from lowering wages as a way to trim the overall cost of the project. Opponents, on the other hand, argue that the union wages used as the regulation's benchmark don't always fall in line with regional pay rates. Last year, National Association of Home Builders First Vice Chairman — now Chairman — Granger MacDonald testified before the House Financial Services Subcommittee on Housing and Insurance that Davis-Bacon prevents smaller construction firms from competing for some federally funded projects. Chao's indication that Trump's massive infrastructure plan will include Davis-Bacon wage rates is sure to draw pushback from Republicans and many construction industry groups, such as the Associated Builders and Contractors, who have consistently lobbied for the r...