Service Contract Act vs Davis-Bacon: Which Applies to Your Contract?

Sep 22, 2025

Two federal prevailing wage laws cover most federal contracts: the Davis-Bacon Act (DBA) for construction and the Service Contract Act (SCA) for services. Determining which applies — or whether both do — is critical for compliance.

The Key Distinction

Davis-Bacon covers contracts principally for construction: building, alteration, or repair of public buildings and public works. Service Contract Act covers contracts principally for services performed by service employees.

Construction Examples (Davis-Bacon)

  • Building a new federal courthouse
  • Renovating a VA hospital
  • Paving roads on a military base

Service Examples (SCA)

  • Building maintenance and janitorial services
  • IT helpdesk support at a federal facility
  • Security guard services

What If Both Apply?

Some contracts involve both construction and service work. In this case, the construction portions are covered by Davis-Bacon and the service portions by SCA. Contractors must separately track which law applies to each type of work.

Full SCA guide →

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