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Build America, Buy America (BABA) Compliance Guide to What Builders Need to Know

By Ryan

Wednesday, Nov 19th, 2025

Build America, Buy America (BABA) Compliance Guide to What Builders Need to Know

BABA Is Changing the Way We Build

If you’ve worked on government-funded projects recently, you’ve probably come across the term BABA compliance. Maybe it showed up in a bid requirement, or maybe your general contractor mentioned it in passing. Either way it isn't something builders can ignore.

The Build America, Buy America Act (BABA) is here, and it directly affects the materials you source and how you prove compliance. For local builders, that means new rules, new documentation, and sometimes new supply chain headaches.

Wilson Lumber is determined that you do not have to figure this out alone. We are helping contractors across our region understand the requirements and source BABA-compliant products so you can stay focused on the business of building.

This article will walk you through everything you need to know: what BABA is, how it affects builders, what challenges to watch for, and how to stay compliant without slowing down your projects.

What Is the Build America, Buy America Act?

The Build America, Buy America Act (BABA) was signed into law in November 2021 as part of the Infrastructure Investment and Jobs Act (IIJA). Its purpose is to simply dictate that when federal dollars are funding infrastructure projects, the materials used should be manufactured in the United States.

The Goals of BABA

Strengthen the U.S. supply chains

by reducing reliance on foreign materials.

Support domestic jobs and manufacturing.

Ensure taxpayer dollars stay in the American economy.

What Projects Does BABA Cover?

Under the Build America, Buy America (BABA) Act, BABA compliance applies broadly to federally funded infrastructure projects.

For commercial builders on federal contracts, that includes roads and bridges; public K–12 schools and campus facilities; airports and aviation improvements; utility infrastructure-water/wastewater, power, and broadband; public housing; and other public works.

If federal money is in the mix (grants, loans, or aid), then your project is BABA-covered and must meet domestic-preference requirements.

Roads and bridges
Public schools
Airports
Utility infrastructure (water, power, broadband)
Public housing
And more

If federal money is in the mix, BABA rules apply.

BABA Requirements, Broken Down

At a high level, BABA requires that iron, steel, manufactured products, and construction materials used in federally funded projects are made in the U.S.

Here’s what that looks like in practice ↓

1. Iron and Steel

All manufacturing processes, whether smelting, rolling, or coating, must occur in the United States.
Imported steel components do not qualify.

2. Construction Materials

Covered construction materials include:

Lumber and wood products
Glass (including fiberglass)
Drywall
PVC, plastics, and polymer-based products
Fiber-optic cable
Certain aggregates and composites

(Note: Not all construction materials fall under the same rules. Aggregates like sand, gravel, and stone are sometimes exempt.)

3. Manufactured Products

This is where it can become tricky.

For manufactured products (like windows, doors, or HVAC units):

The product must be manufactured in the U.S.

A certain percentage of the cost of components must also come from domestic sources.

The current threshold is 55% domestic content, but this percentage is set to rise in the coming years.

4. Waivers

There are limited circumstances where waivers may apply, such as:

Public Interest Waivers

If compliance is not practical for the project.

Non-Availability Waivers

If materials simply are not available domestically.

Unreasonable Cost Waivers

If U.S. products cost +25% more than foreign alternatives.

How BABA Impacts Local Builders

So, what does all this mean for your day-to-day work? Let’s break it down:

If your project requires BABA compliance and your materials do not meet the standard, you may be disqualified (or worse, forced to redo work at your own cost).

Owners and general contractors are increasingly requiring certificates of compliance for each covered material. That means you need suppliers who can provide paperwork quickly and accurately.

Not every supplier has done the homework. If your vendor can’t prove compliance, you could face delays or be left scrambling to find alternatives at the last minute.

BABA-compliant products sometimes cost more. Builders need to account for this in their bids and budgets.

Even if you are confident in your supplier, inspectors and project managers may still ask for documentation. Having everything in order before the project starts saves time and stress.

Common Compliance Challenges Builders Face

Commercial builders on federally funded projects face a few common BABA hurdles: it’s often unclear which materials are covered, like whether dimensional lumber, nails, or screws qualify, so planning gets complex. Even when the rules are clear, compliant versions aren’t always in stock, and tight schedules don’t allow weeks of waiting for certificates. Some suppliers still haven’t caught up with BABA requirements, creating documentation gaps. And if a noncompliant item slips onto the job, it can trigger change orders, delays, and costly rework.

Confusion over covered materials - Is lumber covered? What about nails or screws?
Limited product availability - Not every product has a compliant version readily in stock.
Tight project timelines - Builders can’t afford to wait weeks for compliance certificates.
Supplier gaps - Some suppliers simply aren’t keeping up with BABA requirements.
Unexpected change orders - Using noncompliant materials can trigger costly rework.

How Wilson Lumber Helps Builders Stay Compliant

At Wilson Lumber, we become partners to builders, and that doesn't stop short at BABA compliance.

Here’s how we support builders like you:

1. Product Knowledge

We’ve identified which of our products meet BABA standards and maintain updated records.

2. Documentation Support

When you buy compliant products from us, we provide the certificates you need for submittals.

3. Proactive Sourcing

We stock and source BABA-compliant products ahead of demand so you aren't left waiting.

4. Local Partnership

We’re committed to helping our builder community succeed. We know your pressures and deadlines, and we work with you to meet them.

BABA Compliance in Action

As important as it is to be compliant with the BABA Act, it's equally as important to trust suppliers who have experience sourcing BABA-compliant materials. Wilson Lumber's Commercial Operations Supervisor, Avey Vroonland, had this to say:

"Housing Authority projects across the Southeast require various forms of compliance from BABA to certified payrolls. It is our mission to work with General Contractors to provide timely reports and documentation to keep the project moving and on schedule. Poor compliance equals larger jobsite delays."

FAQ: BABA Compliance for Builders

Does BABA apply to all projects?

No, only federally funded projects. But the scope is broad, and many state/local projects also adopt BABA-like rules.

How is BABA different from “Buy American”?

“Buy American” applies to direct federal purchases. BABA applies to infrastructure projects funded through federal dollars.

What happens if I use noncompliant products?

You may face disqualification, delays, or be forced to replace materials at your own cost.

Can I request a waiver?

Yes, but it’s difficult and time-consuming. Waivers should not be your first strategy.

How do I prove compliance?

Through certificates provided by the manufacturer or supplier. Wilson Lumber provides these for BABA-compliant products we carry.

Is lumber always covered?

Yes, lumber and wood products fall under BABA requirements. Choosing the right supplier is key.

Action Plan for Builders

Here’s how to stay ahead of BABA compliance:

Audit Your Upcoming Projects - Identify jobs with federal funding.
Review Your Materials List - Flag categories like steel, doors, glass, and lumber.
Talk to Your Supplier Early - Confirm they can provide BABA-compliant options with documentation.
Budget Accordingly - Some products may cost more, but they save you from bigger expenses later.
Partner with Wilson Lumber – We’ll walk you through compliant products, provide paperwork, and help you bid with confidence.

Build with an Experienced BABA Partner

The Build America, Buy America Act is reshaping the construction industry. For builders, it means more oversight, more documentation, and more responsibility. But it doesn’t have to mean more headaches.

With the right partner, compliance can be straightforward. At Wilson Lumber, we do the legwork sourcing, certifying, and documenting products that meet BABA requirements.

👉 Need a building materials partner to help simplify your BABA compliance?