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.