# First Davis-Bacon job: how big is the weekly payroll gap? > A first prevailing-wage job pays the crew every week and the contractor about once a month. Size that gap, and the certified payroll workload, before bid day. By Elie Mendlow · Published November 11, 2026 Section: Business Funding › Term Loans & Credit Lines · Series: Contractor Desk (https://mcafax.com/notebook/series/contractor-desk) Canonical: https://mcafax.com/notebook/contractor-prevailing-wage-payroll-cash Source: MCAFax, The Broker's Notebook (https://mcafax.com/notebook). MCAFax is not a lender or a law firm. --- In the example below, $126,144 of payroll leaves before the first public check lands. On a first Davis-Bacon job, the deciding factor is timing: crews get paid weekly at wage plus fringe, with a certified payroll each week, while the agency pays a monthly estimate minus retainage. Size that gap before you bid, not after award. This is general information, not legal, tax or financial advice. Federal rules only; state prevailing-wage laws vary. ## Why does a first prevailing-wage job squeeze cash before the first check? Because labor goes out weekly and money comes in monthly. The federal contract clause at 29 CFR 5.5 says laborers and mechanics on site must be paid "not less often than once a week" at no less than the wage determination rates, including bona fide fringe benefits or a cash equivalent: https://www.ecfr.gov/current/title-29/subtitle-A/part-5/subpart-A/section-5.5 Public pay estimates follow a different calendar. You bill at month end, the agency reviews, and payment arrives later, often with retainage held back. The contract sets the actual terms, so read the payment section before you price labor. Small GCs asking about their first prevailing-wage bid keep raising the same worry in contractor forums: the rate sheet is the easy part. The cash calendar and the paperwork are what catch them. ## What does weekly certified payroll add to the office? A weekly filing with a signed statement. Under 29 CFR 5.5, the contractor or sub must submit certified payrolls every week that covered work is performed. Each one carries a signed Statement of Compliance confirming every worker was paid the full weekly wages earned. The records list each worker's classification, hourly rate, fringe, daily and weekly hours, deductions and actual pay. Optional Form WH-347 from the Department of Labor (https://www.dol.gov ) can be used, or any format with the same information. A recent thread on X described a shop finding out mid-job that its payroll software could not produce the weekly report. Test your system on a dummy week before the first pour. ## How big is the gap on a real-sized job? Run the math with your own crew. All names and numbers below are made up. Ridgeway Concrete wins a $640,000 municipal sidewalk package. Six workers at a combined $58.40 an hour (wage plus fringe) for 40 hours cost $14,016 a week. Work starts March 2. The first pay estimate goes in March 31 for $160,000 of work, less 5% retainage of $8,000, so $152,000 is due. Payment lands around April 30. That is nine Friday payrolls, or $126,144, before the first check. Employer payroll taxes, materials and fuel come on top. Ridgeway had $70,000 in the bank, so it needed a plan for the other $56,144 before signing. ## What can stop the agency check entirely? Late or incomplete certified payroll. The same federal clause lets the agency suspend further payments, after written notice, when required records are not submitted. It can also withhold accrued payments to cover unpaid wages. That turns a paperwork miss into a cash event. One missing weekly report can hold up a pay estimate you were counting on for the next payroll. ## What should you line up before bid day? - Pull the wage determination in the bid documents and price every classification you will use. - Count the Fridays between the start date and the first realistic payment date. - Multiply weekly wage plus fringe by that count, then add payroll taxes and materials. - Confirm your payroll system can produce a weekly certified payroll with fringe detail. - Decide how the gap gets funded: reserves, an existing line of credit, or a working capital product sized to the job. For the wider contractor funding picture, start with https://mcafax.com/notebook/construction-business-loans and compare paths at https://mcafax.com/notebook/where-to-get-business-funding . If cash gets tight mid-job, never fund the gap with withheld payroll taxes. Use the contractor funding guide at https://mcafax.com/notebook/construction-business-loans instead of the tax deposit. ## Questions readers ask **Can I pay the fringe portion as cash on the check?** The federal clause allows bona fide fringe benefits or a cash equivalent. Show the split clearly on each certified payroll so the classification and rate can be checked. **Do state-funded jobs follow the same rules?** Not always. State prevailing-wage laws set their own rates, forms and deadlines, so read the state labor department rules named in the bid documents. **Who do I send certified payroll to as a sub?** Follow your subcontract. The prime contractor is responsible for submitting every sub's certified payrolls, so most primes set their own weekly cutoff. **How long do I keep the records?** The federal clause says at least 3 years after all work on the prime contract is completed.