22.404-2
General requirements
Contracting officers must ensure only the correct, current, and clearly designated wage determinations are included in construction contracts, with proper classification and guidance sought when needed.
Overview
FAR 22.404-2 outlines the general requirements for contracting officers regarding the incorporation and application of wage determinations in construction contracts subject to the Construction Wage Rate Requirements statute (formerly Davis-Bacon Act). It specifies how wage determinations must be selected, applied, and documented in solicitations and contracts, ensuring that only the appropriate and current wage rates are used for the relevant types of construction work. The section also provides definitions and guidelines for classifying construction projects (building, residential, highway, heavy) and emphasizes the importance of adhering to local area practices and seeking guidance when classification is unclear.
Key Rules
- Appropriate Wage Determinations
- Only relevant wage determinations must be included in contracts, and each must be clearly designated to the applicable work. Project wage determinations cannot be used for unrelated contracts or options.
- Current Wage Determinations for Options
- When exercising contract options, the most current wage determinations from the same schedule must be used.
- Rate Schedule Inclusion
- For contracts with multiple rate schedules, only applicable schedules should be included, or the entire determination with clear indications of applicability. Inclusion by reference is not allowed.
- Construction Type Classification
- Provides definitions for building, residential, highway, and heavy construction to guide proper wage schedule selection.
- Unclear Project Classification
- When project type is unclear, local area practices should be considered, and guidance from the Wage and Hour Division should be sought before bid opening or final offers.
Responsibilities
- Contracting Officers: Must select, incorporate, and clearly designate appropriate wage determinations and schedules; update wage determinations for options; seek guidance when classification is unclear.
- Contractors: Must comply with the wage determinations and schedules specified in the contract.
- Agencies: Ensure oversight of proper wage determination application and compliance with Department of Labor guidance.
Practical Implications
- Ensures workers are paid correct prevailing wages for the type of construction work performed.
- Reduces risk of disputes or noncompliance by clarifying wage determination selection and application.
- Common pitfalls include misclassification of construction type, failure to update wage determinations for options, or improper inclusion by reference.