Introduction
If you’re a contractor, ESCO, developer, CPA, fund manager, or REIT involved in energy or infrastructure projects, it’s time to get serious about Davis-Bacon and Prevailing Wage & Apprenticeship (PWA) compliance.
With enhanced tax incentives and strict labor mandates tied to both construction and federal financing, proving you’ve met these requirements isn’t optional; it’s essential.
Many overlook the fact that Davis-Bacon and PWA compliance does not end when your project wraps up. For certain projects, compliance continues for up to 10 years, impacting not only your tax strategy but also ongoing financing and operational practices.
Davis-Bacon Isn’t Just About Tax Credits
Complying with prevailing wage and apprenticeship rules is critical for unlocking bonus tax incentives, including:
- §179D (Energy Efficient Commercial Buildings Deduction)
- §48 (Investment Tax Credit for solar, battery storage, geothermal)
- §45 (Production Tax Credit for renewable energy projects)
But compliance extends far beyond tax credits.
If you’re a developer, fund manager, or REIT using federal financing, Davis-Bacon compliance likely applies, especially with the following programs:
- HUD 221(d)(4): Multifamily new construction or substantial rehabilitation.
- HUD 223(f): Multifamily acquisitions or refinancing with substantial repairs.
- HUD 202/811: Affordable and supportive housing developments.
- USDA Rural Development Programs: Infrastructure and community facilities financing.
- EPA State Revolving Funds (SRF): Water and wastewater infrastructure funding.
- DOE Loan Programs & Infrastructure Investment and Jobs Act (IIJA): Grants and loans for infrastructure and clean energy projects.
Simply put, if your project involves federal funding or subsidies, there is a strong chance Davis-Bacon rules apply, tax credit or not.
Real-Time Oversight, Not Just Software
Working with us means more than just buying software. It means proactive project management. Our dedicated project managers ensure weekly oversight of your compliance data, including payroll, wage classifications, and apprenticeship hours.
If a shortfall occurs, your project manager gets notified immediately to:
- Flag the discrepancy.
- Contact your team or the responsible subcontractor.
- Ensure timely corrective action within allowable periods to prevent penalties or credit reductions.
This proactive approach safeguards your compliance status, significantly reducing your financial and audit risk.
Comprehensive Onboarding Including Subcontractors
Our onboarding doesn’t stop at prime contractors. We actively onboard every relevant subcontractor involved in your project, from HVAC technicians to electricians and specialty trade contractors, ensuring consistent compliance across your entire project scope.
Ongoing Responsibilities Post Project Completion
For renewable energy projects exceeding 1 MW, compliance doesn’t end at project commissioning. To maintain §48 or §45 bonus eligibility, you must:
- Pay prevailing wages for all repairs and maintenance.
- Maintain detailed compliance documentation for at least five years (and up to ten years for certain programs).
Our service includes long-term tracking, documentation, and periodic audits to ensure ongoing compliance.
Built for State, Local, and Federal Jobs
Approximately 20 states and hundreds of local jurisdictions mandate prevailing wage compliance (Davis-Bacon) for public-sector projects. This obligation results in significant administrative burdens for large contractors and CPA firms, often requiring dedicated compliance teams and expensive third-party software.
Our proprietary software streamlines these processes, significantly reducing overhead, internal labor costs, and third-party software licensing fees (in most cases, except when LCP Tracker is mandated). By partnering with us, your organization can reallocate compliance-focused resources to more valuable activities.
Independent Certification and Audit-Ready Documentation
As an independent third-party provider, our services enhance your credibility in the eyes of auditors. We offer:
- Independent certification reports.
- Periodic onsite audits and worker interviews.
- Verified apprenticeship documentation.
- Comprehensive audit-ready records.
In the event of IRS, HUD, or other audits, independent third-party verification is invaluable, mitigating risks and strengthening your compliance position.
Conclusion
Whether managing compliance for tax incentives, federal financing, HUD programs, or public infrastructure projects, our service simplifies your obligations, reduces both internal and external compliance costs, and strengthens your audit defense.
Let our team handle your Davis-Bacon and PWA compliance so you can stay focused on your core operations and clients.
