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Bill

SB 518

Public works contracts; prevailing wage rate, definitions, civil penalty.

2026 Regular Session Introduced by Jennifer Carroll Foy and 2 co-sponsors

Virginia localities must explicitly include prevailing wage rate requirements in all public works contract bids, increasing labor standards transparency but potentially raising project costs.

Substitute bill reprinted 26110431D
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Bill Summary · SB 518

Legislative bill overview

SB 518 requires Virginia localities to ensure that public works contract bid specifications explicitly include prevailing wage rate requirements. The bill incorporates provisions from SB 370 and has been revised through a committee substitute, currently under consideration in the Finance and Appropriations Committee after passing Commerce and Labor on a 9-6 vote.

Why is this important

Prevailing wage requirements significantly impact construction project costs and labor standards. This bill clarifies that localities must transparently specify these rates in bid documents, affecting both contractor bidding practices and public project budgets. The issue directly influences labor compensation, project competitiveness, and local government transparency.

Potential points of contention

  • Cost impact on projects: Mandating prevailing wage specifications may increase public works costs, particularly for smaller localities with limited budgets
  • Competitive bidding concerns: Contractors argue prevailing wage requirements reduce bidding competition and may disadvantage smaller firms unfamiliar with prevailing wage compliance
  • Labor advocacy support: Labor unions and worker advocates support stronger prevailing wage enforcement to protect worker standards and prevent wage undercutting
  • Implementation burden: Localities may face administrative challenges ensuring consistent compliance and accurate wage rate documentation across all contracts

Compiled from official sources — confirm details with the bill’s official record.

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