Funding trigger
Does CHIPS Act funding trigger Davis-Bacon prevailing wage?
Yes. Construction of a facility funded under the CHIPS incentives program is subject to Davis-Bacon prevailing wage requirements.
Short answer
Yes. Construction of a facility funded under the CHIPS incentives program is subject to Davis-Bacon prevailing wage requirements.
How the requirement attaches
The CHIPS statute and the Department of Commerce program terms require that laborers and mechanics employed by contractors and subcontractors on CHIPS-funded facility construction be paid at least the Davis-Bacon prevailing wages for the locality.
Bid-file implication
Treat CHIPS-funded semiconductor facility work like federal construction: use the incorporated wage determination and submit certified payroll.
Guardrail
This page is an estimator aid, not an official determination. Confirm the wage determination incorporated into the specific contract, and any state schedule named by the owner, before submitting a bid.
FAQ
Frequently asked questions
Does CHIPS Act funding require Davis-Bacon prevailing wages?
Yes. Construction of a facility funded under the CHIPS incentives program is subject to Davis-Bacon prevailing wage requirements.
What happens when both federal and state prevailing wage apply?
When a project is covered by both the federal Davis-Bacon wage determination and a state prevailing wage schedule, the contractor generally must pay the higher of the two total hourly obligations for each classification.
Do I still need certified payroll?
Yes. Covered contractors and subcontractors must submit weekly certified payroll showing the classifications and rates paid.
Official sources