Indiana repealed its Common Construction Wage law in 2015, so state and local public projects generally no longer set a state prevailing wage. Federal Davis-Bacon prevailing wage can still apply when a project uses federal funding. Either way, public work still comes with bonding, certified-payroll where required, and strict documentation.
What "prevailing wage" means
A prevailing wage is a government-set minimum wage (plus benefits) for specific construction trades on public projects, intended to keep public-works pay in line with local standards. For decades many states, Indiana included, set these rates for state and local public construction.
What changed in Indiana in 2015
Indiana repealed its Common Construction Wage law, effective July 1, 2015. As a result, state and local public-works projects in Indiana generally no longer carry a state-mandated prevailing wage. For owners and contractors, that removed a layer of wage-setting and reporting that used to apply to most public jobs in the state.
What it did not do is remove every wage requirement from every public project — which is where the federal piece comes in.
When federal Davis-Bacon still applies
The federal Davis-Bacon Act sets prevailing wages on federally funded construction. When a project is paid for in whole or in part with federal dollars and meets the Act's thresholds, Davis-Bacon wage rates and reporting can apply even in Indiana. School and municipal projects sometimes use federal grants or programs, so the funding source — not just the project type — determines whether federal wage rules are triggered. The safe practice is to confirm the funding and applicable rules on every public project before bidding.
The other basics of public-bid work
Prevailing wage is only one piece of public construction. Regardless of wage rules, public projects typically involve:
- Bonding: bid bonds, and performance and payment bonds, that guarantee the contractor can complete the work and pay subs and suppliers.
- Certified payroll (where applicable): signed weekly records of workers, classifications, hours, and wages, proving compliance with any wage requirements such as Davis-Bacon.
- Public-bid procedure: formal advertised bidding, bid security, and award rules that vary by owner and project size.
- Documentation and transparency: the records public owners need to answer to boards, councils, and audits.
Why it pays to work with a public-savvy GC
The rules differ by funding source and have changed over time, so the value of an experienced public-works contractor is partly just knowing which requirements actually apply to your project — and handling the bonding, payroll, and documentation cleanly so you're never exposed in an audit or a board meeting. R. Chavez Construction is experienced with publicly bid and negotiated delivery; see our municipal & government construction page.
General information, not legal advice, and current as of writing. Wage and procurement rules change and depend on funding source — always confirm the requirements for your specific project with qualified counsel or your funding agency.