What does the Davis-Bacon Act require for federal construction projects?

• A. Fair Labor Standards Act: regulates minimum wage, overtime pay, and child labor
• B. Davis Bacon Act: Requires prevailing wages on federal construction projects
• C. General liability insurance covers the physical property of the firm
• D. Mechanic's lien protects owner from unpaid debts

Answer: (B)

This question tests understanding of wage requirements on federal construction projects. The key point is that the Davis-Bacon Act requires contractors on federal construction projects to pay workers the locally prevailing wages and fringe benefits for the type of work performed, as determined by the Department of Labor. This ensures wages reflect local standards and prevents underbidding by paying less.

The other options don’t fit this specific requirement: the Fair Labor Standards Act sets minimum wage, overtime, and child-labor rules in general but does not establish the prevailing wage determinations for federal construction projects; general liability insurance protects a firm from property-related claims, not wage rates; a mechanic’s lien secures payment for work on a property, not wage requirements on federal projects.