Construction Wage Rate Requirements
Contractors on federal construction projects must pay workers at least the prevailing wage rates and benefits, post required notices, and strictly follow wage classification and payment procedures to ensure compliance with the Davis-Bacon Act.
Overview
FAR 52.222-6, Construction Wage Rate Requirements, implements the Davis-Bacon Act for federal construction contracts. It mandates that all laborers and mechanics working on the site of the work must be paid at least the prevailing wage rates and fringe benefits as determined by the Department of Labor. The clause defines the "site of the work," outlines wage determination posting and payment requirements, and establishes procedures for classifying unlisted labor categories. It also addresses how fringe benefits are to be paid or credited and the process for resolving wage classification disputes.
Key Rules
- Definition of Site of the Work
- Specifies what locations are considered part of the "site of the work" for wage determination purposes, including primary and secondary sites, and excludes permanent off-site facilities.
- Wage and Fringe Benefit Payments
- Requires weekly, unconditional payment of wages and bona fide fringe benefits at rates not less than those in the applicable wage determination.
- Posting Requirements
- Contractors must post the wage determination and Davis-Bacon poster (WH-1321) at all work sites in a prominent location.
- Classification of Unlisted Labor Categories
- Procedures for adding new labor classifications not listed in the wage determination, including approval by the Contracting Officer and Department of Labor.
- Fringe Benefits
- Allows payment of fringe benefits as stated, or equivalent cash payments, and sets standards for considering anticipated costs as wages.
Responsibilities
- Contracting Officers: Ensure correct wage determinations are included, approve additional classifications, and coordinate with the Department of Labor as needed.
- Contractors: Pay required wages and benefits, post required notices, maintain accurate payroll records, and follow procedures for new labor classifications.
- Agencies: Oversee compliance and report classification actions to the Department of Labor.
Practical Implications
- Ensures fair wages on federal construction projects and prevents wage undercutting.
- Contractors must closely monitor wage determinations and maintain strict payroll and posting compliance.
- Noncompliance can result in payment withholding, contract termination, or debarment.