Florida General Contractor Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

The correct answer identifies that under the Davis-Bacon Act, all Federal construction projects over a certain amount are required to pay prevailing wage rates. This legislation mandates that workers employed on federally funded or federally assisted construction projects must be paid at least the locally prevailing wages and fringe benefits for similar work in the area.

This ensures that workers on these projects are compensated fairly and aligns their wages with the local standard, preventing wage depression in the construction industry. The act applies specifically to Federal projects, which sets it apart from private or state-funded initiatives, as those do not have the same requirements under this particular legislation.

Understanding the scope of the Davis-Bacon Act is crucial for contractors and workers alike, as it outlines protections and standards that aim to support fair competition and labor conditions within the construction industry.