22.403-1
Construction Wage Rate Requirements statute
Contracts over $2,000 for federal construction projects must include a clause requiring payment of prevailing wage rates to on-site laborers and mechanics.
Overview
FAR 22.403-1 implements the Construction Wage Rate Requirements statute (formerly the Davis-Bacon Act), mandating that contracts over $2,000 for construction, alteration, or repair of public buildings or works in the U.S. must include a clause ensuring workers are paid at least the prevailing wage rates set by the Secretary of Labor. This requirement applies to contracts where the U.S. or the District of Columbia is a party and covers laborers and mechanics working directly on the site, including those involved in painting and decorating. The regulation ensures fair wages on federally funded construction projects and requires the inclusion of FAR clause 52.222-6 in applicable contracts.
Key Rules
- Applicability Threshold
- Applies to contracts exceeding $2,000 for construction, alteration, or repair of public buildings or works in the U.S.
- Prevailing Wage Requirement
- Laborers and mechanics must be paid at least the prevailing wage rates as determined by the Secretary of Labor.
- Mandatory Contract Clause
- Contracts must include FAR clause 52.222-6 to enforce wage requirements.
Responsibilities
- Contracting Officers: Ensure inclusion of the required wage rate clause and verify compliance.
- Contractors: Pay all laborers and mechanics at least the prevailing wage rates and comply with contract clauses.
- Agencies: Oversee contract compliance and address wage-related issues.
Practical Implications
- Ensures fair compensation for workers on federal construction projects.
- Non-compliance can result in payment withholding, contract termination, or debarment.
- Contractors must stay updated on current prevailing wage determinations and maintain accurate payroll records.