Procurement Services

Prevailing Wage Ordinance for City of Richmond Construction Contracts

Effective July 1, 2025, a prevailing wage requirement applies for city construction contracts that are $250,000 or more in value.

What is Prevailing Wage Rate?

• The prevailing wage rate is the rate, amount, or level of wages, salaries, benefits and other remuneration prevailing for the corresponding classes of mechanics, laborers or workers employed for the same work in the same trade or occupation in the locality in which the public facility or immovable property that is the subject of construction is located, as determined by the Virginia Commissioner of Labor and Industry on the basis of applicable prevailing wage rate determinations made by the U.S. Secretary of Labor under the provisions of the Davis-Bacon Act.
  
  • More Information:
    
    • Virginia Prevailing Wage Law
    • Section 21-74 of the Code of the City of Richmond; Richmond City Ordinance No. 2024-186 adopted October 15, 2024.
    • § 2.2-4321.3. Payment of prevailing wage for work performed on public works contracts; penalty (virginia.gov)

Which contracts require a Prevailing Wage?

• Each contract for construction greater than $250,000 awarded by the City pursuant to Chapter 21 of the City Code will require the contractor and all subcontractors to pay wages, salaries, benefits and other remuneration to any mechanic, laborer, or worker employed, retained, or otherwise hired to perform services in connection with the construction contract, at or above the prevailing wage rate as established by the VA Department of Labor and Industry (DOLI). Construction contracts subject to Federal prevailing wage law are exempted from the City’s prevailing wage requirement.

How is the Prevailing Wage Rage determined?

• Wage Determinations are made by the VA Department of Labor and Industry (DOLI).

Contractor Requirements

The ordinance requires that contractors and subcontractors complete the following:

Upon Contract Award:

• Upon award of any construction contract subject to the provisions of Section 21-74 of the City Code, the contractor must certify, under oath, to the Virginia Commissioner of Labor and Industry the pay scale for each craft or trade employed on the project to be used by the contractor and any of the contractor’s subcontractors for work to be performed under the county contract.

Within 5 Days:

•  Within five days of certifying, the contractor must provide a copy of that certification to the Director of Procurement Services.

Posting Wage Rates at Work Site:

• During the entire time work is being performed, contractors and subcontractors  must post a clearly legible statement of the general prevailing wage rate for each craft and classification involved (as determined by the Virginia Department of Labor and Industry) in prominent and easily accessible places at the work site and pay sites.  Such posting must be made in English and any other language that is primarily spoken by the employees at the work site.
• Within 10 days of such posting, the contractor and subcontractor shall certify to the Director of Procurement Services and to the Virginia Commissioner of Labor and Industry.

Records:

• Each contractor and subcontractor subject to Section 21-74 of the City Code must keep, maintain, and preserve records relating to:
  
  • the wages paid and hours worked by each individual performing work of any mechanic, laborer, or worker, and a schedule of the occupation work classification at which each individual performing the work of any mechanic, laborer, or worker on the construction project is employed each workday and week.
• These records must be preserved for a minimum of six years from contract expiration or termination.
• Records should also be made available to the Virginia Department of Labor and Industry or the City within 10 days of a request for information.
• Contractor shall certify that the records reflect the actual hours worked and the amount paid to its workers for whatever time period is requested.

Applicability to Subcontractors:

• In addition to applying the prevailing wage rates to its own employees, the Contractor shall include the provisions of Section 21-74 of the City Code in every subcontract so that the provisions will be binding upon each subcontractor.  The appropriate enforcement sanctions may be invoked against the contractor and any such subcontractor in event of such subcontractor’s failure to comply with any of the provisions of Section 21-74 of the City Code.

Liability

For any contractor or subcontractor employing any mechanic, laborer, or worker to perform work contracted to be done under the construction contract at a rate that is less than the prevailing wage rate, the contractor or subcontractor:

• Is liable to the individual for payment of all wages plus interest at an annual rate of 8% accruing from the date the wages were due
• Will be disqualified from bidding on contracts with any public body until the contractor or subcontractor has made full restitution to the individuals.

A contractor or subcontractor who willfully violates Section 21-74 of the City Code is guilty of a Class 1 misdemeanor.

What Workers Can Do / File a Claim

Employees who believe they have not been paid the prevailing wage for their classification may file a claim with the Virginia Department of Labor and Industry - Labor & Employment Law Division and review other Employee Rights and claim forms.

Employee Rights / File a Prevailing Wage claim