22.404-1
Types of wage determinations
Contracting officers must use the correct, current wage determination—general or project-specific—for each construction contract to ensure compliance with federal wage requirements.
Overview
FAR 22.404-1 outlines the two primary types of wage determinations—general and project wage determinations—used in construction contracts subject to the Construction Wage Rate Requirements statute (formerly Davis-Bacon Act). These determinations set the minimum prevailing wage rates for laborers and mechanics and are essential for ensuring compliance with federal wage standards on covered construction projects.
Key Rules
- General Wage Determinations
- Issued by the Department of Labor (DOL), these determinations cover specific types of construction in defined geographic areas and are published on the Wage Determinations at SAM.gov website. They remain valid until modified, superseded, or canceled, and once incorporated into a contract, typically remain effective for the contract's duration unless an option is exercised to extend the contract term.
- Project Wage Determinations
- Issued at the request of a contracting agency when no general wage determination applies, these are effective for 180 days from issuance. Extensions may be possible if the determination expires before contract award. Once incorporated, they also generally remain effective for the contract's life unless the contract is extended.
Responsibilities
- Contracting Officers: Must ensure the correct wage determination is incorporated into contracts, use general wage determinations whenever possible, and seek DOL approval before using archived determinations.
- Contractors: Must comply with the wage rates specified in the applicable determination for the duration of the contract.
- Agencies: Must request project wage determinations when necessary and ensure compliance with DOL procedures.
Practical Implications
- This section ensures that workers on federal construction projects are paid prevailing wages. Contractors and contracting officers must carefully select and incorporate the correct wage determination to avoid compliance issues, wage underpayments, or contract disputes. Using outdated or archived wage determinations without approval is a common pitfall.