Texas Prevailing Wage and Certified Payroll: A Contractor's Guide

August 15, 2026 — WH347.io Team

Texas Chapter 2258 governs covered state and local public works wages. Federal Davis-Bacon requirements may apply as well. Check both sets of contract obligations, including the project's payroll records and submission process.

Texas has a public works prevailing wage law in Government Code Chapter 2258. Covered work performed for the state or a political subdivision must meet the applicable prevailing rates determined by the public body and specified in the contract. State and local public works can therefore carry wage and payroll-record obligations even without federal funding; check the awarding body's contract requirements.

Federal Davis-Bacon and Related Acts requirements may apply as well when the funding program and contract trigger federal coverage. Determine state and federal obligations separately rather than assuming one replaces the other.

When Davis-Bacon Applies on Texas Projects

Texas public works wages are governed by Government Code Chapter 2258, particularly Sections 2258.021–.024. Federal coverage is a separate question: use our Davis-Bacon coverage overview and wage-determination reporting guide alongside the contract's state and federal clauses.

Davis-Bacon applies to Texas construction projects when federal money is involved and the statutory trigger is met. The most common scenarios:

• Direct federal contracts: work for a federal agency such as the Army Corps of Engineers, the GSA, the VA, or military installations. Davis-Bacon is written into these contracts automatically.
• Federal highway funding: Texas receives substantial federal transportation funding through the Federal Highway Administration (FHWA). Projects funded through TxDOT with federal-aid money are subject to Davis-Bacon requirements.
• HUD-funded housing: multifamily housing projects funded through HUD programs (CDBG, HOME, Section 8 construction) are covered.
• FAA airport projects: construction at commercial airports funded by FAA Airport Improvement Program grants.
• Infrastructure law projects: the Infrastructure Investment and Jobs Act (2021) expanded the number of federally funded Texas projects subject to Davis-Bacon, including many broadband, water, and energy infrastructure projects.

How to Look Up Texas Wage Determinations

Texas wage determinations are published by the DOL's Wage and Hour Division and are available at sam.gov under the 'Wage Determinations' section. Texas wage determinations are organized by county and by construction type (building, heavy, highway, and residential). The applicable wage determination for your project will be incorporated into your contract by the contracting agency — you don't choose it.

Texas is a large state with significant geographic and economic variation. The prevailing wage for a carpenter in the Dallas–Fort Worth metroplex is different from the rate in rural West Texas. Always use the wage determination that was incorporated into your specific contract — don't substitute a rate from a different county or a determination pulled from a prior project.

• Look up current determinations at sam.gov/wage-determination.
• Texas determinations are identified by state code (TX) and county.
• Check whether the wage determination in your contract has been modified since the contract was awarded — modifications are incorporated automatically and take effect on the next contract anniversary if not addressed.
• If you believe the wage determination in your contract is incorrect or outdated, raise the issue with the contracting officer before work begins.

TxDOT Federal-Aid Highway Projects

The Texas Department of Transportation (TxDOT) administers a large volume of federally funded highway construction. Federal-aid highway projects in Texas — paving, bridge work, interchange construction, safety improvements — are subject to Davis-Bacon prevailing wage requirements under 23 U.S.C. § 113.

TxDOT's published LCPtracker FAQ states that LCPtracker is mandatory for construction projects beginning with the August 2017 letting and distinguishes maintenance and facilities contracts. Do not infer an AASHTOWare payroll requirement from TxDOT's use of other project-management software. Confirm the reporting process and contract provisions with the project engineer.

See TxDOT's official LCPtracker requirements and access FAQ before selecting a payroll export. A WH347.io AASHTOWare-targeted file is not proof of compatibility with TxDOT's required reporting system.

• Certified payroll is due weekly, typically within seven days of the regular payday for the work week.
• Both prime contractors and subcontractors must submit their own certified payrolls.
• TxDOT project supervisors review submissions for completeness; missing or late payrolls can result in withheld progress payments.
• For questions about a specific TxDOT project's certified payroll requirements, contact the TxDOT project engineer or labor compliance representative assigned to the project.

Local Government Projects in Texas

Texas cities and counties can receive federal grant funding for a range of construction projects — water infrastructure, parks, public facilities — that come with Davis-Bacon strings attached. The contracting entity is the local government, but the prevailing wage and certified payroll obligations flow down from the federal funding source.

Local Texas governments vary considerably in how sophisticated their certified payroll tracking is. Some cities have dedicated labor compliance staff; others are managing their first federally funded construction project. If you're working on a local government contract in Texas with federal funding, ask early about the submission process and confirm whether the agency has a preferred format or portal.

Common Misconceptions for Texas Contractors

• 'Texas has no prevailing wage law, so I don't need to worry about it.' — Incorrect: Chapter 2258 governs covered state and local public works, while Davis-Bacon may add federal requirements.
• 'The state-only project my company bid last year didn't require certified payroll, so this one probably doesn't either.' — Check every project individually against the contract documents.
• 'If TxDOT is the contracting agency, it's a state project.' — TxDOT administers both state and federal-aid projects. Check whether your specific project references Davis-Bacon requirements.
• 'I've been a contractor in Texas for 20 years and never had to do certified payroll.' — Prior experience does not determine the next contract's obligations. Check its state wage, recordkeeping and federal reporting clauses.

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