Construction Wage Rate Requirements statute wage determinations
Contractors must pay prevailing wages and fringe benefits as determined by the Department of Labor for all covered workers on federal construction projects, based on the specific type of construction involved.
Overview
FAR 22.404 outlines the requirements for wage determinations under the Construction Wage Rate Requirements statute (formerly known as the Davis-Bacon Act). The Department of Labor (DOL) is responsible for issuing wage determinations that reflect prevailing wages and fringe benefits for laborers and mechanics working on federal construction projects. These determinations are specific to the type of construction (building, heavy, highway, residential) and apply only to workers employed by contractors at the site of the work, including certain drivers transporting materials and equipment. The section also references procedures for requesting, modifying, correcting, and posting wage determinations, as well as handling situations where wage determinations are missing or incorrect.
Key Rules
- DOL Wage Determinations
- The DOL issues wage determinations specifying minimum wages and fringe benefits for various types of construction work.
- Applicability
- Wage determinations apply only to laborers and mechanics (including certain drivers) employed at the site of the work.
- Construction Types
- Determinations are categorized by construction type: building, heavy, highway, and residential.
- Procedural Requirements
- The section references detailed procedures for requesting, posting, modifying, and appealing wage determinations.
Responsibilities
- Contracting Officers: Must ensure the correct wage determination is included in solicitations and contracts, and follow procedures for requesting or correcting determinations.
- Contractors: Must pay at least the prevailing wages and fringe benefits as specified in the applicable wage determination to all covered workers.
- Agencies: Must oversee compliance, ensure proper posting, and address any issues with wage determinations.
Practical Implications
- Ensures workers on federal construction projects are paid prevailing local wages.
- Contractors must carefully identify the correct wage determination for each project and construction type.
- Failure to comply can result in contract disputes, penalties, or payment withholdings.