Overview
FAR 22.401 establishes the foundational definitions for labor standards in Federal construction contracts, specifically identifying the types of workers, activities, and geographic locations subject to prevailing wage and fringe benefit requirements.
Key Rules
- Laborers and Mechanics: Includes workers performing manual or physical duties, including apprentices, trainees, and "working foremen" who spend more than 20 percent of their workweek performing manual tasks. It excludes those in strictly executive, administrative, or professional roles.
- Site of the Work: Coverage extends beyond the primary construction location to include secondary sites where significant portions of the work are built and dedicated facilities (like batch plants or tool yards) that are adjacent to the work site and established specifically for the contract.
- Apprentices and Trainees: To be classified as such, individuals must be registered in a bona fide program recognized by the U.S. Department of Labor (OATELS) or a recognized State Apprenticeship Agency.
- Wages and Fringe Benefits: "Wages" include the basic hourly rate plus irrevocable contributions to bona fide fringe benefits (e.g., pensions, health insurance, vacation). Benefits required by other laws (such as Social Security or Workers' Compensation) do not count toward meeting prevailing wage obligations.
- Construction Activities: Includes not only the physical building but also painting, decorating, manufacturing materials on-site, and the transportation of materials between dedicated project sites.
Practical Implications
- Contractors must closely monitor the duties of supervisors; if a foreman performs manual labor for more than 20% of their time, they must be paid the applicable prevailing wage for those hours.
- Off-site facilities, such as fabrication plants, may inadvertently fall under Davis-Bacon Act requirements if they are established solely for the federal project and are located near the primary construction site.