ABC: New Davis-Bacon Rule Will Devastate Small Construction Contractors Working on Federal Contracts

Burdensome regulations cost on family business over $1 million and forced them to sell. Testifying on behalf of Associated Builders and Contractors before the U.S. House Committee on Small Business today, Mario Burgos, chief strategy officer, Prairie Band LLC, Albuquerque, New Mexico, urged lawmakers to rein in the Biden administration’s inscrutable and burdensome wage determination practices under the Davis-Bacon and Related Acts. Burgos detailed his efforts to comply with a byzantine process to determine prevailing wages on federal construction projects and said the U.S. Department of Labor’s recent rulemaking updating Davis-Bacon will only make compliance challenges worse, driving small contractors out of public works projects or even out of business. Speaking at the hearing “Burdensome Regulations: Examining the Effects of DOL Rulemaking on America’s Job Creators,” Burgos narrated the DOL’s investigation of his award-winning family business, Burgos Group, which resulted in the withholding of nearly $1 million in federal payments owed to the 17-year-old firm and a settlement costing the company hundreds of thousands of dollars plus legal fees. Ultimately, this action and the overly burdensome regulatory environment facing Burgos and his company were contributing factors to its sale to Prairie Band LLC. READ FULL STORY >>