52.222-7
Withholding of Funds
Contracting Officers can withhold payments from contractors to ensure laborers and mechanics are paid required prevailing wages, and may suspend payments if wage violations are not corrected.
Overview
FAR 52.222-7, "Withholding of Funds," establishes the authority and procedures for Contracting Officers to withhold payments from contractors when there is a failure to pay laborers and mechanics the wages required by the contract, as mandated by prevailing wage laws. This clause applies to contracts subject to prevailing wage requirements, such as those under the Davis-Bacon Act. The Contracting Officer can act independently or upon request from the Department of Labor to withhold sufficient funds to cover unpaid wages. If violations occur, the Contracting Officer may suspend further payments or advances until the contractor remedies the wage deficiencies. Written notice must be provided to the contractor before such actions are taken.