U.S. DEPARTMENT OF LABOR
EMPLOYMENT STANDARDS ADMINISTRATION
Wage and Hour Division
WASHINGTON, D.C. 20210
MAR 17 1978
ALL AGENCY MEMORANDUM NO. 130
TO: ALL GOVERNMENT CONTRACTING AGENCIES AND THE
DISTRICT OF COLUMBIA
FROM: XAVIER M. VELA
ADMINISTRATOR
SUBJECT: Application Of The Standard Of Comparison "Projects Of A
Character Similar" Under The Davis-Bacon And Related Acts
The purpose of this memorandum is to set forth present policies of
the Wage and Hour Division with regard to the determination of "projects
of a character similar to the contract work" for wage determination
purposes. The guidelines contained in the memorandum are to be used 187
the contracting agencies in selecting the proper schedule(s) of wage rates
from the Federal Register and in instructing contractors regarding the
application of multiple schedules. This memorandum supersedes All
Agency Memorandum No. 68 (July 19, 1966).
The Davis-Bacon and related Acts require the Secretary of Labor to
determine the prevailing wage rates for corresponding classes of laborers
and mechanics on projects in the area which are of a "character similar"
to the proposed contract work to which the determination will be applied.
The Department's Wage Appeals Board in a decision specifically relating to
high-rise apartment buildings (WAB Case No. stated:76-11, dated January
27, 1977) stated:
The test of whether a project is of a character
similar to another project refers to the nature of
the project itself in a construction sense, not to
whether union or nonunion wages are paid or whether
union or nonunion workers are employed. Since the
1935 amendments to the Davis-Bacon Act, the
statutory focus has always been on the character of
the project itself rather than on who was employed
on the project or how much he or she was being paid.




















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Again, in a decision relating to a water treatment plant project (WAB
Case No. 77-20, dated September 30, 1977), the Board stated: "When it is
clear from the nature of the project itself in a construction sense that
it is to be categorized as either building, heavy, or highway construction
it is not necessary to resort to an area practice survey to determine the
appropriate categorization of the project."
Generally construction projects are classified as either Building,
Heavy, Highway or Residential. 1/ Below are descriptions of these
classifications with an illustrative listing of the kinds of projects that
are generally included within the classification. Contracting agencies
should utilize these descriptions and illustrations in carrying out their
responsibilities, to insure a uniform and consistent administration of the
Davis-Bacon and related prevailing wage statutes. The advertised and
contract specifications should identify as specifically as possible the
segments of work to which the schedules will apply. Note, however, that
the descriptions and illustrations are guides. Contracting agencies
should seek a determination from the Department of Labor on close
questions or when the appropriate classification is in dispute. In making
this determination where a project does not readily fall within any
category, the Department of Labor may consider wages being paid on
analogous projects as an indication of the proper category. As stated by
the Wage Appeals Board in WAB Case No. 77-23, dated December 30, 1977:
"Wages, however, are only one indication. It is also necessary to look at
other characteristics of the project, including the construction
techniques, the material and equipment being used on the project, the type
of skills called for on the project work and other similar factors which
would indicate the proper category of construction."
BUILDING CONSTRUCTION
Building construction generally is the construction of sheltered
enclosures with walk-in access for the purpose of housing persons,
machinery, equipment, or supplies. It includes all construction of such
structures, the installation of utilities and the installation of
equipment, both above and below grade
I/ Generally, for wage determination purposes, a project consists of all
construction necessary to complete a facility regardless of the number of
contracts involved so long as all contracts awarded are closely related in
purpose, time and place. For example, demolition or site work preparatory
to building construction is considered a part of the building project for
wage determination purposes. Where a project, such as a water and sewage
treatment plant, includes construction items that in themselves would be
otherwise classified, a multiple classification may be justified if such
construction items are a substantial part of the project. Further,
however, a separate classification would not apply if such construction
items are merely incidental to the total project to which they are closely
related in function. For example, water or sewer line work which is a
part of a building project would not generally be separately classified.
Where construction is "incidental" in function, 20 percent of project cost
is used as a rough guide for determining when construction is also
"incidental" in amount to the overall project.







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level, as well as incidental grading, utilities and paying. Additionally,
such structures need not be "habitable" to be building construction. The
installation of heavy machinery and/or equipment does not generally change
the project's character as a building.
Examples
Alterations and additions to buildings
Apartment buildings (5 stories and above)
Arenas (enclosed)
Auditoriums
Automobile parking garages
Banks and financial buildings
Barracks
Churches
City halls
Civic centers
Commercial buildings
Court houses
Detention facilities
Dormitories
Farm buildings
Fire stations
Hospitals
Hotels
Industrial buildings
Institutional buildings
Libraries
Mausoleums
Motels
Museums
Nursing and convalescent facilities
Office buildings
Out-patient clinics
Passenger and freight terminal buildings
Police stations
Post offices Power plants
Prefabricated buildings
Remodeling buildings
Renovating buildings
Repairing buildings
Restaurants
Schools
Service stations
Shopping centers
Stores
Subway stations
Theaters
Warehouses Water and sewage treatment plants (buildings only)









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RESIDENTIAL CONSTRUCTION
Residential projects for Davis-Bacon purposes are those involving the
construction, alteration, or repair of single family houses or apartment
buildings of no more than four(4) stories in height. This includes all
incidental items such as site work, parking areas, utilities, streets and
sidewalks.
Examples
Town or row houses
Apartment buildings (4 stories or less)
Single family houses
Mobile home developments
Multi-family houses
Married student housing
HEAVY CONSTRUCTION
Heavy projects are those projects that are not properly classified as
either "building", "highway", or "residential". Unlike these
classifications, heavy construction is not a homogeneous classification.
Because of this catch-all nature, projects within the heavy classification
may sometimes be distinguished on the basis of their particular project
characteristics, and separate schedules issued. For example, separate
schedules may be issued for dredging projects, water and sewer line
projects, dams, major bridges, and flood control projects.
Examples
Antenna towers
Bridges (major bridges designed for commercial navigation) 2/
Breakwaters
Caissons (other than building or highway)
Canals
Channels
Channel cut-offs
Chemical complexes or facilities (other than buildings)
Cofferdams
Coke ovens
Dams
Demolition (not incidental to construction)
Dikes
Docks
Drainage projects
2/ Major bridges contain elements of both heavy and highway construction.
See WAB Case No. 772 (October 21, 1977)
















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Dredging projects
Electrification projects (outdoor)
Flood control projects
Industrial incinerators (other than building)
Irrigation projects
Jetties
Kilns
Land drainage (not incidental to other construction)
Land leveling (not incidental to other construction)
Land reclamation
Levees
Locks, waterways
Oil refineries (other than buildings)
Pipe lines
Ponds
Pumping stations (prefabricated drop-in units - not buildings)
Railroad construction
Reservoirs
Revetments
Sewage collection and disposal lines
Sewers (sanitary, storm, etc)
Shoreline maintenance
Ski tows
Storage tanks
Swimming pools (outdoor)
Subways (other than buildings)
Tipples
Tunnels
Unsheltered piers and wharves
Viaducts (other than highway)
Water mains
Water-way construction
Water supply lines (not incidental to building)
Water and sewage treatment plants (other than buildings)
Wells
HIGHWAY CONSTRUCTION
Highway projects include the construction, alteration or repair of roads,
streets, highways, runways, taxiways, alleys, trails, paths, parking
areas, and other similar projects not incidental to building or heavy
construction.
Examples
Alleys
Base courses
Bituminous treatments
Bridle paths
Concrete pavement
Curbs
Excavation and embankment (for road construction)








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Fencing (highway)
Grade crossing elimination (overpasses or underpasses)
Guard rails on highway
Highway signs
Highway bridges (overpasses; underpasses; grade separation)
Medians
Parking lots
Parkways
Resurfacing streets and highways
Roadbeds
Roadways
Runways
Shoulders
Stabilizing courses
Storm sewers incidental to road construction
Street Paving
Surface courses
Taxiways
Trails
In applying these guidelines contracting agencies are reminded that they
have the authority only in the first instance to designate the appropriate
wage schedule(s) from the Federal Resister, and to determine the
application of multiple schedules issued by the Wage and Hour Division in
project wage determinations. Any questions regarding the application of
the guidelines set forth in this memorandum to a particular project or any
disputes regarding the application of the wage schedules are to be
referred to the Wage and Hour Division for resolution, and the
instructions of the Wage and Hour Division are to be observed in all
instances. Furthermore, where multiple schedules are issued by the Wage
and Hour Division, they must be utilized in the contract specifications
unless the agency requests and receives a change in the wage determination
from the Wage and Hour Division. To ensure that appropriate schedules are
issued, contracting agencies are advised to provide the Wage and Hour
Division in their requests for wage determinations with a sufficiently
specific description of the project to be able to determine its character.